IL
Illinois Senate Bill SB1699

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1699 Compare Versions

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1-Public Act 103-0580
21 SB1699 EnrolledLRB103 27684 AMQ 54061 b SB1699 Enrolled LRB103 27684 AMQ 54061 b
32 SB1699 Enrolled LRB103 27684 AMQ 54061 b
4-AN ACT concerning regulation.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Freedom of Information Act is amended by
8-changing Section 7.5 as follows:
9-(5 ILCS 140/7.5)
10-Sec. 7.5. Statutory exemptions. To the extent provided for
11-by the statutes referenced below, the following shall be
12-exempt from inspection and copying:
13-(a) All information determined to be confidential
14-under Section 4002 of the Technology Advancement and
15-Development Act.
16-(b) Library circulation and order records identifying
17-library users with specific materials under the Library
18-Records Confidentiality Act.
19-(c) Applications, related documents, and medical
20-records received by the Experimental Organ Transplantation
21-Procedures Board and any and all documents or other
22-records prepared by the Experimental Organ Transplantation
23-Procedures Board or its staff relating to applications it
24-has received.
25-(d) Information and records held by the Department of
26-Public Health and its authorized representatives relating
3+1 AN ACT concerning regulation.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Freedom of Information Act is amended by
7+5 changing Section 7.5 as follows:
8+6 (5 ILCS 140/7.5)
9+7 Sec. 7.5. Statutory exemptions. To the extent provided for
10+8 by the statutes referenced below, the following shall be
11+9 exempt from inspection and copying:
12+10 (a) All information determined to be confidential
13+11 under Section 4002 of the Technology Advancement and
14+12 Development Act.
15+13 (b) Library circulation and order records identifying
16+14 library users with specific materials under the Library
17+15 Records Confidentiality Act.
18+16 (c) Applications, related documents, and medical
19+17 records received by the Experimental Organ Transplantation
20+18 Procedures Board and any and all documents or other
21+19 records prepared by the Experimental Organ Transplantation
22+20 Procedures Board or its staff relating to applications it
23+21 has received.
24+22 (d) Information and records held by the Department of
25+23 Public Health and its authorized representatives relating
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33-to known or suspected cases of sexually transmissible
34-disease or any information the disclosure of which is
35-restricted under the Illinois Sexually Transmissible
36-Disease Control Act.
37-(e) Information the disclosure of which is exempted
38-under Section 30 of the Radon Industry Licensing Act.
39-(f) Firm performance evaluations under Section 55 of
40-the Architectural, Engineering, and Land Surveying
41-Qualifications Based Selection Act.
42-(g) Information the disclosure of which is restricted
43-and exempted under Section 50 of the Illinois Prepaid
44-Tuition Act.
45-(h) Information the disclosure of which is exempted
46-under the State Officials and Employees Ethics Act, and
47-records of any lawfully created State or local inspector
48-general's office that would be exempt if created or
49-obtained by an Executive Inspector General's office under
50-that Act.
51-(i) Information contained in a local emergency energy
52-plan submitted to a municipality in accordance with a
53-local emergency energy plan ordinance that is adopted
54-under Section 11-21.5-5 of the Illinois Municipal Code.
55-(j) Information and data concerning the distribution
56-of surcharge moneys collected and remitted by carriers
57-under the Emergency Telephone System Act.
58-(k) Law enforcement officer identification information
59-
60-
61-or driver identification information compiled by a law
62-enforcement agency or the Department of Transportation
63-under Section 11-212 of the Illinois Vehicle Code.
64-(l) Records and information provided to a residential
65-health care facility resident sexual assault and death
66-review team or the Executive Council under the Abuse
67-Prevention Review Team Act.
68-(m) Information provided to the predatory lending
69-database created pursuant to Article 3 of the Residential
70-Real Property Disclosure Act, except to the extent
71-authorized under that Article.
72-(n) Defense budgets and petitions for certification of
73-compensation and expenses for court appointed trial
74-counsel as provided under Sections 10 and 15 of the
75-Capital Crimes Litigation Act. This subsection (n) shall
76-apply until the conclusion of the trial of the case, even
77-if the prosecution chooses not to pursue the death penalty
78-prior to trial or sentencing.
79-(o) Information that is prohibited from being
80-disclosed under Section 4 of the Illinois Health and
81-Hazardous Substances Registry Act.
82-(p) Security portions of system safety program plans,
83-investigation reports, surveys, schedules, lists, data, or
84-information compiled, collected, or prepared by or for the
85-Department of Transportation under Sections 2705-300 and
86-2705-616 of the Department of Transportation Law of the
87-
88-
89-Civil Administrative Code of Illinois, the Regional
90-Transportation Authority under Section 2.11 of the
91-Regional Transportation Authority Act, or the St. Clair
92-County Transit District under the Bi-State Transit Safety
93-Act.
94-(q) Information prohibited from being disclosed by the
95-Personnel Record Review Act.
96-(r) Information prohibited from being disclosed by the
97-Illinois School Student Records Act.
98-(s) Information the disclosure of which is restricted
99-under Section 5-108 of the Public Utilities Act.
100-(t) All identified or deidentified health information
101-in the form of health data or medical records contained
102-in, stored in, submitted to, transferred by, or released
103-from the Illinois Health Information Exchange, and
104-identified or deidentified health information in the form
105-of health data and medical records of the Illinois Health
106-Information Exchange in the possession of the Illinois
107-Health Information Exchange Office due to its
108-administration of the Illinois Health Information
109-Exchange. The terms "identified" and "deidentified" shall
110-be given the same meaning as in the Health Insurance
111-Portability and Accountability Act of 1996, Public Law
112-104-191, or any subsequent amendments thereto, and any
113-regulations promulgated thereunder.
114-(u) Records and information provided to an independent
115-
116-
117-team of experts under the Developmental Disability and
118-Mental Health Safety Act (also known as Brian's Law).
119-(v) Names and information of people who have applied
120-for or received Firearm Owner's Identification Cards under
121-the Firearm Owners Identification Card Act or applied for
122-or received a concealed carry license under the Firearm
123-Concealed Carry Act, unless otherwise authorized by the
124-Firearm Concealed Carry Act; and databases under the
125-Firearm Concealed Carry Act, records of the Concealed
126-Carry Licensing Review Board under the Firearm Concealed
127-Carry Act, and law enforcement agency objections under the
128-Firearm Concealed Carry Act.
129-(v-5) Records of the Firearm Owner's Identification
130-Card Review Board that are exempted from disclosure under
131-Section 10 of the Firearm Owners Identification Card Act.
132-(w) Personally identifiable information which is
133-exempted from disclosure under subsection (g) of Section
134-19.1 of the Toll Highway Act.
135-(x) Information which is exempted from disclosure
136-under Section 5-1014.3 of the Counties Code or Section
137-8-11-21 of the Illinois Municipal Code.
138-(y) Confidential information under the Adult
139-Protective Services Act and its predecessor enabling
140-statute, the Elder Abuse and Neglect Act, including
141-information about the identity and administrative finding
142-against any caregiver of a verified and substantiated
143-
144-
145-decision of abuse, neglect, or financial exploitation of
146-an eligible adult maintained in the Registry established
147-under Section 7.5 of the Adult Protective Services Act.
148-(z) Records and information provided to a fatality
149-review team or the Illinois Fatality Review Team Advisory
150-Council under Section 15 of the Adult Protective Services
151-Act.
152-(aa) Information which is exempted from disclosure
153-under Section 2.37 of the Wildlife Code.
154-(bb) Information which is or was prohibited from
155-disclosure by the Juvenile Court Act of 1987.
156-(cc) Recordings made under the Law Enforcement
157-Officer-Worn Body Camera Act, except to the extent
158-authorized under that Act.
159-(dd) Information that is prohibited from being
160-disclosed under Section 45 of the Condominium and Common
161-Interest Community Ombudsperson Act.
162-(ee) Information that is exempted from disclosure
163-under Section 30.1 of the Pharmacy Practice Act.
164-(ff) Information that is exempted from disclosure
165-under the Revised Uniform Unclaimed Property Act.
166-(gg) Information that is prohibited from being
167-disclosed under Section 7-603.5 of the Illinois Vehicle
168-Code.
169-(hh) Records that are exempt from disclosure under
170-Section 1A-16.7 of the Election Code.
171-
172-
173-(ii) Information which is exempted from disclosure
174-under Section 2505-800 of the Department of Revenue Law of
175-the Civil Administrative Code of Illinois.
176-(jj) Information and reports that are required to be
177-submitted to the Department of Labor by registering day
178-and temporary labor service agencies but are exempt from
179-disclosure under subsection (a-1) of Section 45 of the Day
180-and Temporary Labor Services Act.
181-(kk) Information prohibited from disclosure under the
182-Seizure and Forfeiture Reporting Act.
183-(ll) Information the disclosure of which is restricted
184-and exempted under Section 5-30.8 of the Illinois Public
185-Aid Code.
186-(mm) Records that are exempt from disclosure under
187-Section 4.2 of the Crime Victims Compensation Act.
188-(nn) Information that is exempt from disclosure under
189-Section 70 of the Higher Education Student Assistance Act.
190-(oo) Communications, notes, records, and reports
191-arising out of a peer support counseling session
192-prohibited from disclosure under the First Responders
193-Suicide Prevention Act.
194-(pp) Names and all identifying information relating to
195-an employee of an emergency services provider or law
196-enforcement agency under the First Responders Suicide
197-Prevention Act.
198-(qq) Information and records held by the Department of
199-
200-
201-Public Health and its authorized representatives collected
202-under the Reproductive Health Act.
203-(rr) Information that is exempt from disclosure under
204-the Cannabis Regulation and Tax Act.
205-(ss) Data reported by an employer to the Department of
206-Human Rights pursuant to Section 2-108 of the Illinois
207-Human Rights Act.
208-(tt) Recordings made under the Children's Advocacy
209-Center Act, except to the extent authorized under that
210-Act.
211-(uu) Information that is exempt from disclosure under
212-Section 50 of the Sexual Assault Evidence Submission Act.
213-(vv) Information that is exempt from disclosure under
214-subsections (f) and (j) of Section 5-36 of the Illinois
215-Public Aid Code.
216-(ww) Information that is exempt from disclosure under
217-Section 16.8 of the State Treasurer Act.
218-(xx) Information that is exempt from disclosure or
219-information that shall not be made public under the
220-Illinois Insurance Code.
221-(yy) Information prohibited from being disclosed under
222-the Illinois Educational Labor Relations Act.
223-(zz) Information prohibited from being disclosed under
224-the Illinois Public Labor Relations Act.
225-(aaa) Information prohibited from being disclosed
226-under Section 1-167 of the Illinois Pension Code.
227-
228-
229-(bbb) Information that is prohibited from disclosure
230-by the Illinois Police Training Act and the Illinois State
231-Police Act.
232-(ccc) Records exempt from disclosure under Section
233-2605-304 of the Illinois State Police Law of the Civil
234-Administrative Code of Illinois.
235-(ddd) Information prohibited from being disclosed
236-under Section 35 of the Address Confidentiality for
237-Victims of Domestic Violence, Sexual Assault, Human
238-Trafficking, or Stalking Act.
239-(eee) Information prohibited from being disclosed
240-under subsection (b) of Section 75 of the Domestic
241-Violence Fatality Review Act.
242-(fff) Images from cameras under the Expressway Camera
243-Act. This subsection (fff) is inoperative on and after
244-July 1, 2023.
245-(ggg) Information prohibited from disclosure under
246-paragraph (3) of subsection (a) of Section 14 of the Nurse
247-Agency Licensing Act.
248-(hhh) Information submitted to the Illinois Department
249-of State Police in an affidavit or application for an
250-assault weapon endorsement, assault weapon attachment
251-endorsement, .50 caliber rifle endorsement, or .50 caliber
252-cartridge endorsement under the Firearm Owners
253-Identification Card Act.
254-(iii) Information prohibited from being disclosed
255-
256-
257-under subsection (e) of Section 1-129 of the Illinois
258-Power Agency Act.
259-(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
260-101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
261-1-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
262-eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
263-101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
264-1-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
265-eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
266-102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
267-7-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
268-2-13-23.)
269-Section 10. The Illinois Power Agency Act is amended by
270-changing Section 1-75 and adding Section 1-129 as follows:
271-(20 ILCS 3855/1-75)
272-(Text of Section before amendment by P.A. 103-380)
273-Sec. 1-75. Planning and Procurement Bureau. The Planning
274-and Procurement Bureau has the following duties and
275-responsibilities:
276-(a) The Planning and Procurement Bureau shall each year,
277-beginning in 2008, develop procurement plans and conduct
278-competitive procurement processes in accordance with the
279-requirements of Section 16-111.5 of the Public Utilities Act
280-for the eligible retail customers of electric utilities that
281-
282-
283-on December 31, 2005 provided electric service to at least
284-100,000 customers in Illinois. Beginning with the delivery
285-year commencing on June 1, 2017, the Planning and Procurement
286-Bureau shall develop plans and processes for the procurement
287-of zero emission credits from zero emission facilities in
288-accordance with the requirements of subsection (d-5) of this
289-Section. Beginning on the effective date of this amendatory
290-Act of the 102nd General Assembly, the Planning and
291-Procurement Bureau shall develop plans and processes for the
292-procurement of carbon mitigation credits from carbon-free
293-energy resources in accordance with the requirements of
294-subsection (d-10) of this Section. The Planning and
295-Procurement Bureau shall also develop procurement plans and
296-conduct competitive procurement processes in accordance with
297-the requirements of Section 16-111.5 of the Public Utilities
298-Act for the eligible retail customers of small
299-multi-jurisdictional electric utilities that (i) on December
300-31, 2005 served less than 100,000 customers in Illinois and
301-(ii) request a procurement plan for their Illinois
302-jurisdictional load. This Section shall not apply to a small
303-multi-jurisdictional utility until such time as a small
304-multi-jurisdictional utility requests the Agency to prepare a
305-procurement plan for their Illinois jurisdictional load. For
306-the purposes of this Section, the term "eligible retail
307-customers" has the same definition as found in Section
308-16-111.5(a) of the Public Utilities Act.
309-
310-
311-Beginning with the plan or plans to be implemented in the
312-2017 delivery year, the Agency shall no longer include the
313-procurement of renewable energy resources in the annual
314-procurement plans required by this subsection (a), except as
315-provided in subsection (q) of Section 16-111.5 of the Public
316-Utilities Act, and shall instead develop a long-term renewable
317-resources procurement plan in accordance with subsection (c)
318-of this Section and Section 16-111.5 of the Public Utilities
319-Act.
320-In accordance with subsection (c-5) of this Section, the
321-Planning and Procurement Bureau shall oversee the procurement
322-by electric utilities that served more than 300,000 retail
323-customers in this State as of January 1, 2019 of renewable
324-energy credits from new utility-scale solar projects to be
325-installed, along with energy storage facilities, at or
326-adjacent to the sites of electric generating facilities that,
327-as of January 1, 2016, burned coal as their primary fuel
328-source.
329-(1) The Agency shall each year, beginning in 2008, as
330-needed, issue a request for qualifications for experts or
331-expert consulting firms to develop the procurement plans
332-in accordance with Section 16-111.5 of the Public
333-Utilities Act. In order to qualify an expert or expert
334-consulting firm must have:
335-(A) direct previous experience assembling
336-large-scale power supply plans or portfolios for
337-
338-
339-end-use customers;
340-(B) an advanced degree in economics, mathematics,
341-engineering, risk management, or a related area of
342-study;
343-(C) 10 years of experience in the electricity
344-sector, including managing supply risk;
345-(D) expertise in wholesale electricity market
346-rules, including those established by the Federal
347-Energy Regulatory Commission and regional transmission
348-organizations;
349-(E) expertise in credit protocols and familiarity
350-with contract protocols;
351-(F) adequate resources to perform and fulfill the
352-required functions and responsibilities; and
353-(G) the absence of a conflict of interest and
354-inappropriate bias for or against potential bidders or
355-the affected electric utilities.
356-(2) The Agency shall each year, as needed, issue a
357-request for qualifications for a procurement administrator
358-to conduct the competitive procurement processes in
359-accordance with Section 16-111.5 of the Public Utilities
360-Act. In order to qualify an expert or expert consulting
361-firm must have:
362-(A) direct previous experience administering a
363-large-scale competitive procurement process;
364-(B) an advanced degree in economics, mathematics,
365-
366-
367-engineering, or a related area of study;
368-(C) 10 years of experience in the electricity
369-sector, including risk management experience;
370-(D) expertise in wholesale electricity market
371-rules, including those established by the Federal
372-Energy Regulatory Commission and regional transmission
373-organizations;
374-(E) expertise in credit and contract protocols;
375-(F) adequate resources to perform and fulfill the
376-required functions and responsibilities; and
377-(G) the absence of a conflict of interest and
378-inappropriate bias for or against potential bidders or
379-the affected electric utilities.
380-(3) The Agency shall provide affected utilities and
381-other interested parties with the lists of qualified
382-experts or expert consulting firms identified through the
383-request for qualifications processes that are under
384-consideration to develop the procurement plans and to
385-serve as the procurement administrator. The Agency shall
386-also provide each qualified expert's or expert consulting
387-firm's response to the request for qualifications. All
388-information provided under this subparagraph shall also be
389-provided to the Commission. The Agency may provide by rule
390-for fees associated with supplying the information to
391-utilities and other interested parties. These parties
392-shall, within 5 business days, notify the Agency in
393-
394-
395-writing if they object to any experts or expert consulting
396-firms on the lists. Objections shall be based on:
397-(A) failure to satisfy qualification criteria;
398-(B) identification of a conflict of interest; or
399-(C) evidence of inappropriate bias for or against
400-potential bidders or the affected utilities.
401-The Agency shall remove experts or expert consulting
402-firms from the lists within 10 days if there is a
403-reasonable basis for an objection and provide the updated
404-lists to the affected utilities and other interested
405-parties. If the Agency fails to remove an expert or expert
406-consulting firm from a list, an objecting party may seek
407-review by the Commission within 5 days thereafter by
408-filing a petition, and the Commission shall render a
409-ruling on the petition within 10 days. There is no right of
410-appeal of the Commission's ruling.
411-(4) The Agency shall issue requests for proposals to
412-the qualified experts or expert consulting firms to
413-develop a procurement plan for the affected utilities and
414-to serve as procurement administrator.
415-(5) The Agency shall select an expert or expert
416-consulting firm to develop procurement plans based on the
417-proposals submitted and shall award contracts of up to 5
418-years to those selected.
419-(6) The Agency shall select an expert or expert
420-consulting firm, with approval of the Commission, to serve
421-
422-
423-as procurement administrator based on the proposals
424-submitted. If the Commission rejects, within 5 days, the
425-Agency's selection, the Agency shall submit another
426-recommendation within 3 days based on the proposals
427-submitted. The Agency shall award a 5-year contract to the
428-expert or expert consulting firm so selected with
429-Commission approval.
430-(b) The experts or expert consulting firms retained by the
431-Agency shall, as appropriate, prepare procurement plans, and
432-conduct a competitive procurement process as prescribed in
433-Section 16-111.5 of the Public Utilities Act, to ensure
434-adequate, reliable, affordable, efficient, and environmentally
435-sustainable electric service at the lowest total cost over
436-time, taking into account any benefits of price stability, for
437-eligible retail customers of electric utilities that on
438-December 31, 2005 provided electric service to at least
439-100,000 customers in the State of Illinois, and for eligible
440-Illinois retail customers of small multi-jurisdictional
441-electric utilities that (i) on December 31, 2005 served less
442-than 100,000 customers in Illinois and (ii) request a
443-procurement plan for their Illinois jurisdictional load.
444-(c) Renewable portfolio standard.
445-(1)(A) The Agency shall develop a long-term renewable
446-resources procurement plan that shall include procurement
447-programs and competitive procurement events necessary to
448-meet the goals set forth in this subsection (c). The
449-
450-
451-initial long-term renewable resources procurement plan
452-shall be released for comment no later than 160 days after
453-June 1, 2017 (the effective date of Public Act 99-906).
454-The Agency shall review, and may revise on an expedited
455-basis, the long-term renewable resources procurement plan
456-at least every 2 years, which shall be conducted in
457-conjunction with the procurement plan under Section
458-16-111.5 of the Public Utilities Act to the extent
459-practicable to minimize administrative expense. No later
460-than 120 days after the effective date of this amendatory
461-Act of the 102nd General Assembly, the Agency shall
462-release for comment a revision to the long-term renewable
463-resources procurement plan, updating elements of the most
464-recently approved plan as needed to comply with this
465-amendatory Act of the 102nd General Assembly, and any
466-long-term renewable resources procurement plan update
467-published by the Agency but not yet approved by the
468-Illinois Commerce Commission shall be withdrawn. The
469-long-term renewable resources procurement plans shall be
470-subject to review and approval by the Commission under
471-Section 16-111.5 of the Public Utilities Act.
472-(B) Subject to subparagraph (F) of this paragraph (1),
473-the long-term renewable resources procurement plan shall
474-attempt to meet the goals for procurement of renewable
475-energy credits at levels of at least the following overall
476-percentages: 13% by the 2017 delivery year; increasing by
477-
478-
479-at least 1.5% each delivery year thereafter to at least
480-25% by the 2025 delivery year; increasing by at least 3%
481-each delivery year thereafter to at least 40% by the 2030
482-delivery year, and continuing at no less than 40% for each
483-delivery year thereafter. The Agency shall attempt to
484-procure 50% by delivery year 2040. The Agency shall
485-determine the annual increase between delivery year 2030
486-and delivery year 2040, if any, taking into account energy
487-demand, other energy resources, and other public policy
488-goals. In the event of a conflict between these goals and
489-the new wind and new photovoltaic procurement requirements
490-described in items (i) through (iii) of subparagraph (C)
491-of this paragraph (1), the long-term plan shall prioritize
492-compliance with the new wind and new photovoltaic
493-procurement requirements described in items (i) through
494-(iii) of subparagraph (C) of this paragraph (1) over the
495-annual percentage targets described in this subparagraph
496-(B). The Agency shall not comply with the annual
497-percentage targets described in this subparagraph (B) by
498-procuring renewable energy credits that are unlikely to
499-lead to the development of new renewable resources.
500-For the delivery year beginning June 1, 2017, the
501-procurement plan shall attempt to include, subject to the
502-prioritization outlined in this subparagraph (B),
503-cost-effective renewable energy resources equal to at
504-least 13% of each utility's load for eligible retail
505-
506-
507-customers and 13% of the applicable portion of each
508-utility's load for retail customers who are not eligible
509-retail customers, which applicable portion shall equal 50%
510-of the utility's load for retail customers who are not
511-eligible retail customers on February 28, 2017.
512-For the delivery year beginning June 1, 2018, the
513-procurement plan shall attempt to include, subject to the
514-prioritization outlined in this subparagraph (B),
515-cost-effective renewable energy resources equal to at
516-least 14.5% of each utility's load for eligible retail
517-customers and 14.5% of the applicable portion of each
518-utility's load for retail customers who are not eligible
519-retail customers, which applicable portion shall equal 75%
520-of the utility's load for retail customers who are not
521-eligible retail customers on February 28, 2017.
522-For the delivery year beginning June 1, 2019, and for
523-each year thereafter, the procurement plans shall attempt
524-to include, subject to the prioritization outlined in this
525-subparagraph (B), cost-effective renewable energy
526-resources equal to a minimum percentage of each utility's
527-load for all retail customers as follows: 16% by June 1,
528-2019; increasing by 1.5% each year thereafter to 25% by
529-June 1, 2025; and 25% by June 1, 2026; increasing by at
530-least 3% each delivery year thereafter to at least 40% by
531-the 2030 delivery year, and continuing at no less than 40%
532-for each delivery year thereafter. The Agency shall
533-
534-
535-attempt to procure 50% by delivery year 2040. The Agency
536-shall determine the annual increase between delivery year
537-2030 and delivery year 2040, if any, taking into account
538-energy demand, other energy resources, and other public
539-policy goals.
540-For each delivery year, the Agency shall first
541-recognize each utility's obligations for that delivery
542-year under existing contracts. Any renewable energy
543-credits under existing contracts, including renewable
544-energy credits as part of renewable energy resources,
545-shall be used to meet the goals set forth in this
546-subsection (c) for the delivery year.
547-(C) The long-term renewable resources procurement plan
548-described in subparagraph (A) of this paragraph (1) shall
549-include the procurement of renewable energy credits from
550-new projects in amounts equal to at least the following:
551-(i) 10,000,000 renewable energy credits delivered
552-annually by the end of the 2021 delivery year, and
553-increasing ratably to reach 45,000,000 renewable
554-energy credits delivered annually from new wind and
555-solar projects by the end of delivery year 2030 such
556-that the goals in subparagraph (B) of this paragraph
557-(1) are met entirely by procurements of renewable
558-energy credits from new wind and photovoltaic
559-projects. Of that amount, to the extent possible, the
560-Agency shall procure 45% from wind projects and 55%
561-
562-
563-from photovoltaic projects. Of the amount to be
564-procured from photovoltaic projects, the Agency shall
565-procure: at least 50% from solar photovoltaic projects
566-using the program outlined in subparagraph (K) of this
567-paragraph (1) from distributed renewable energy
568-generation devices or community renewable generation
569-projects; at least 47% from utility-scale solar
570-projects; at least 3% from brownfield site
571-photovoltaic projects that are not community renewable
572-generation projects.
573-In developing the long-term renewable resources
574-procurement plan, the Agency shall consider other
575-approaches, in addition to competitive procurements,
576-that can be used to procure renewable energy credits
577-from brownfield site photovoltaic projects and thereby
578-help return blighted or contaminated land to
579-productive use while enhancing public health and the
580-well-being of Illinois residents, including those in
581-environmental justice communities, as defined using
582-existing methodologies and findings used by the Agency
583-and its Administrator in its Illinois Solar for All
584-Program.
585-(ii) In any given delivery year, if forecasted
586-expenses are less than the maximum budget available
587-under subparagraph (E) of this paragraph (1), the
588-Agency shall continue to procure new renewable energy
589-
590-
591-credits until that budget is exhausted in the manner
592-outlined in item (i) of this subparagraph (C).
593-(iii) For purposes of this Section:
594-"New wind projects" means wind renewable energy
595-facilities that are energized after June 1, 2017 for
596-the delivery year commencing June 1, 2017.
597-"New photovoltaic projects" means photovoltaic
598-renewable energy facilities that are energized after
599-June 1, 2017. Photovoltaic projects developed under
600-Section 1-56 of this Act shall not apply towards the
601-new photovoltaic project requirements in this
602-subparagraph (C).
603-For purposes of calculating whether the Agency has
604-procured enough new wind and solar renewable energy
605-credits required by this subparagraph (C), renewable
606-energy facilities that have a multi-year renewable
607-energy credit delivery contract with the utility
608-through at least delivery year 2030 shall be
609-considered new, however no renewable energy credits
610-from contracts entered into before June 1, 2021 shall
611-be used to calculate whether the Agency has procured
612-the correct proportion of new wind and new solar
613-contracts described in this subparagraph (C) for
614-delivery year 2021 and thereafter.
615-(D) Renewable energy credits shall be cost effective.
616-For purposes of this subsection (c), "cost effective"
617-
618-
619-means that the costs of procuring renewable energy
620-resources do not cause the limit stated in subparagraph
621-(E) of this paragraph (1) to be exceeded and, for
622-renewable energy credits procured through a competitive
623-procurement event, do not exceed benchmarks based on
624-market prices for like products in the region. For
625-purposes of this subsection (c), "like products" means
626-contracts for renewable energy credits from the same or
627-substantially similar technology, same or substantially
628-similar vintage (new or existing), the same or
629-substantially similar quantity, and the same or
630-substantially similar contract length and structure.
631-Benchmarks shall reflect development, financing, or
632-related costs resulting from requirements imposed through
633-other provisions of State law, including, but not limited
634-to, requirements in subparagraphs (P) and (Q) of this
635-paragraph (1) and the Renewable Energy Facilities
636-Agricultural Impact Mitigation Act. Confidential
637-benchmarks shall be developed by the procurement
638-administrator, in consultation with the Commission staff,
639-Agency staff, and the procurement monitor and shall be
640-subject to Commission review and approval. If price
641-benchmarks for like products in the region are not
642-available, the procurement administrator shall establish
643-price benchmarks based on publicly available data on
644-regional technology costs and expected current and future
645-
646-
647-regional energy prices. The benchmarks in this Section
648-shall not be used to curtail or otherwise reduce
649-contractual obligations entered into by or through the
650-Agency prior to June 1, 2017 (the effective date of Public
651-Act 99-906).
652-(E) For purposes of this subsection (c), the required
653-procurement of cost-effective renewable energy resources
654-for a particular year commencing prior to June 1, 2017
655-shall be measured as a percentage of the actual amount of
656-electricity (megawatt-hours) supplied by the electric
657-utility to eligible retail customers in the delivery year
658-ending immediately prior to the procurement, and, for
659-delivery years commencing on and after June 1, 2017, the
660-required procurement of cost-effective renewable energy
661-resources for a particular year shall be measured as a
662-percentage of the actual amount of electricity
663-(megawatt-hours) delivered by the electric utility in the
664-delivery year ending immediately prior to the procurement,
665-to all retail customers in its service territory. For
666-purposes of this subsection (c), the amount paid per
667-kilowatthour means the total amount paid for electric
668-service expressed on a per kilowatthour basis. For
669-purposes of this subsection (c), the total amount paid for
670-electric service includes without limitation amounts paid
671-for supply, transmission, capacity, distribution,
672-surcharges, and add-on taxes.
673-
674-
675-Notwithstanding the requirements of this subsection
676-(c), the total of renewable energy resources procured
677-under the procurement plan for any single year shall be
678-subject to the limitations of this subparagraph (E). Such
679-procurement shall be reduced for all retail customers
680-based on the amount necessary to limit the annual
681-estimated average net increase due to the costs of these
682-resources included in the amounts paid by eligible retail
683-customers in connection with electric service to no more
684-than 4.25% of the amount paid per kilowatthour by those
685-customers during the year ending May 31, 2009. To arrive
686-at a maximum dollar amount of renewable energy resources
687-to be procured for the particular delivery year, the
688-resulting per kilowatthour amount shall be applied to the
689-actual amount of kilowatthours of electricity delivered,
690-or applicable portion of such amount as specified in
691-paragraph (1) of this subsection (c), as applicable, by
692-the electric utility in the delivery year immediately
693-prior to the procurement to all retail customers in its
694-service territory. The calculations required by this
695-subparagraph (E) shall be made only once for each delivery
696-year at the time that the renewable energy resources are
697-procured. Once the determination as to the amount of
698-renewable energy resources to procure is made based on the
699-calculations set forth in this subparagraph (E) and the
700-contracts procuring those amounts are executed, no
701-
702-
703-subsequent rate impact determinations shall be made and no
704-adjustments to those contract amounts shall be allowed.
705-All costs incurred under such contracts shall be fully
706-recoverable by the electric utility as provided in this
707-Section.
708-(F) If the limitation on the amount of renewable
709-energy resources procured in subparagraph (E) of this
710-paragraph (1) prevents the Agency from meeting all of the
711-goals in this subsection (c), the Agency's long-term plan
712-shall prioritize compliance with the requirements of this
713-subsection (c) regarding renewable energy credits in the
714-following order:
715-(i) renewable energy credits under existing
716-contractual obligations as of June 1, 2021;
717-(i-5) funding for the Illinois Solar for All
718-Program, as described in subparagraph (O) of this
719-paragraph (1);
720-(ii) renewable energy credits necessary to comply
721-with the new wind and new photovoltaic procurement
722-requirements described in items (i) through (iii) of
723-subparagraph (C) of this paragraph (1); and
724-(iii) renewable energy credits necessary to meet
725-the remaining requirements of this subsection (c).
726-(G) The following provisions shall apply to the
727-Agency's procurement of renewable energy credits under
728-this subsection (c):
729-
730-
731-(i) Notwithstanding whether a long-term renewable
732-resources procurement plan has been approved, the
733-Agency shall conduct an initial forward procurement
734-for renewable energy credits from new utility-scale
735-wind projects within 160 days after June 1, 2017 (the
736-effective date of Public Act 99-906). For the purposes
737-of this initial forward procurement, the Agency shall
738-solicit 15-year contracts for delivery of 1,000,000
739-renewable energy credits delivered annually from new
740-utility-scale wind projects to begin delivery on June
741-1, 2019, if available, but not later than June 1, 2021,
742-unless the project has delays in the establishment of
743-an operating interconnection with the applicable
744-transmission or distribution system as a result of the
745-actions or inactions of the transmission or
746-distribution provider, or other causes for force
747-majeure as outlined in the procurement contract, in
748-which case, not later than June 1, 2022. Payments to
749-suppliers of renewable energy credits shall commence
750-upon delivery. Renewable energy credits procured under
751-this initial procurement shall be included in the
752-Agency's long-term plan and shall apply to all
753-renewable energy goals in this subsection (c).
754-(ii) Notwithstanding whether a long-term renewable
755-resources procurement plan has been approved, the
756-Agency shall conduct an initial forward procurement
757-
758-
759-for renewable energy credits from new utility-scale
760-solar projects and brownfield site photovoltaic
761-projects within one year after June 1, 2017 (the
762-effective date of Public Act 99-906). For the purposes
763-of this initial forward procurement, the Agency shall
764-solicit 15-year contracts for delivery of 1,000,000
765-renewable energy credits delivered annually from new
766-utility-scale solar projects and brownfield site
767-photovoltaic projects to begin delivery on June 1,
768-2019, if available, but not later than June 1, 2021,
769-unless the project has delays in the establishment of
770-an operating interconnection with the applicable
771-transmission or distribution system as a result of the
772-actions or inactions of the transmission or
773-distribution provider, or other causes for force
774-majeure as outlined in the procurement contract, in
775-which case, not later than June 1, 2022. The Agency may
776-structure this initial procurement in one or more
777-discrete procurement events. Payments to suppliers of
778-renewable energy credits shall commence upon delivery.
779-Renewable energy credits procured under this initial
780-procurement shall be included in the Agency's
781-long-term plan and shall apply to all renewable energy
782-goals in this subsection (c).
783-(iii) Notwithstanding whether the Commission has
784-approved the periodic long-term renewable resources
785-
786-
787-procurement plan revision described in Section
788-16-111.5 of the Public Utilities Act, the Agency shall
789-conduct at least one subsequent forward procurement
790-for renewable energy credits from new utility-scale
791-wind projects, new utility-scale solar projects, and
792-new brownfield site photovoltaic projects within 240
793-days after the effective date of this amendatory Act
794-of the 102nd General Assembly in quantities necessary
795-to meet the requirements of subparagraph (C) of this
796-paragraph (1) through the delivery year beginning June
797-1, 2021.
798-(iv) Notwithstanding whether the Commission has
799-approved the periodic long-term renewable resources
800-procurement plan revision described in Section
801-16-111.5 of the Public Utilities Act, the Agency shall
802-open capacity for each category in the Adjustable
803-Block program within 90 days after the effective date
804-of this amendatory Act of the 102nd General Assembly
805-manner:
806-(1) The Agency shall open the first block of
807-annual capacity for the category described in item
808-(i) of subparagraph (K) of this paragraph (1). The
809-first block of annual capacity for item (i) shall
810-be for at least 75 megawatts of total nameplate
811-capacity. The price of the renewable energy credit
812-for this block of capacity shall be 4% less than
813-
814-
815-the price of the last open block in this category.
816-Projects on a waitlist shall be awarded contracts
817-first in the order in which they appear on the
818-waitlist. Notwithstanding anything to the
819-contrary, for those renewable energy credits that
820-qualify and are procured under this subitem (1) of
821-this item (iv), the renewable energy credit
822-delivery contract value shall be paid in full,
823-based on the estimated generation during the first
824-15 years of operation, by the contracting
825-utilities at the time that the facility producing
826-the renewable energy credits is interconnected at
827-the distribution system level of the utility and
828-verified as energized and in compliance by the
829-Program Administrator. The electric utility shall
830-receive and retire all renewable energy credits
831-generated by the project for the first 15 years of
832-operation. Renewable energy credits generated by
833-the project thereafter shall not be transferred
834-under the renewable energy credit delivery
835-contract with the counterparty electric utility.
836-(2) The Agency shall open the first block of
837-annual capacity for the category described in item
838-(ii) of subparagraph (K) of this paragraph (1).
839-The first block of annual capacity for item (ii)
840-shall be for at least 75 megawatts of total
841-
842-
843-nameplate capacity.
844-(A) The price of the renewable energy
845-credit for any project on a waitlist for this
846-category before the opening of this block
847-shall be 4% less than the price of the last
848-open block in this category. Projects on the
849-waitlist shall be awarded contracts first in
850-the order in which they appear on the
851-waitlist. Any projects that are less than or
852-equal to 25 kilowatts in size on the waitlist
853-for this capacity shall be moved to the
854-waitlist for paragraph (1) of this item (iv).
855-Notwithstanding anything to the contrary,
856-projects that were on the waitlist prior to
857-opening of this block shall not be required to
858-be in compliance with the requirements of
859-subparagraph (Q) of this paragraph (1) of this
860-subsection (c). Notwithstanding anything to
861-the contrary, for those renewable energy
862-credits procured from projects that were on
863-the waitlist for this category before the
864-opening of this block 20% of the renewable
865-energy credit delivery contract value, based
866-on the estimated generation during the first
867-15 years of operation, shall be paid by the
868-contracting utilities at the time that the
869-
870-
871-facility producing the renewable energy
872-credits is interconnected at the distribution
873-system level of the utility and verified as
874-energized by the Program Administrator. The
875-remaining portion shall be paid ratably over
876-the subsequent 4-year period. The electric
877-utility shall receive and retire all renewable
878-energy credits generated by the project during
879-the first 15 years of operation. Renewable
880-energy credits generated by the project
881-thereafter shall not be transferred under the
882-renewable energy credit delivery contract with
883-the counterparty electric utility.
884-(B) The price of renewable energy credits
885-for any project not on the waitlist for this
886-category before the opening of the block shall
887-be determined and published by the Agency.
888-Projects not on a waitlist as of the opening
889-of this block shall be subject to the
890-requirements of subparagraph (Q) of this
891-paragraph (1), as applicable. Projects not on
892-a waitlist as of the opening of this block
893-shall be subject to the contract provisions
894-outlined in item (iii) of subparagraph (L) of
895-this paragraph (1). The Agency shall strive to
896-publish updated prices and an updated
897-
898-
899-renewable energy credit delivery contract as
900-quickly as possible.
901-(3) For opening the first 2 blocks of annual
902-capacity for projects participating in item (iii)
903-of subparagraph (K) of paragraph (1) of subsection
904-(c), projects shall be selected exclusively from
905-those projects on the ordinal waitlists of
906-community renewable generation projects
907-established by the Agency based on the status of
908-those ordinal waitlists as of December 31, 2020,
909-and only those projects previously determined to
910-be eligible for the Agency's April 2019 community
911-solar project selection process.
912-The first 2 blocks of annual capacity for item
913-(iii) shall be for 250 megawatts of total
914-nameplate capacity, with both blocks opening
915-simultaneously under the schedule outlined in the
916-paragraphs below. Projects shall be selected as
917-follows:
918-(A) The geographic balance of selected
919-projects shall follow the Group classification
920-found in the Agency's Revised Long-Term
921-Renewable Resources Procurement Plan, with 70%
922-of capacity allocated to projects on the Group
923-B waitlist and 30% of capacity allocated to
924-projects on the Group A waitlist.
925-
926-
927-(B) Contract awards for waitlisted
928-projects shall be allocated proportionate to
929-the total nameplate capacity amount across
930-both ordinal waitlists associated with that
931-applicant firm or its affiliates, subject to
932-the following conditions.
933-(i) Each applicant firm having a
934-waitlisted project eligible for selection
935-shall receive no less than 500 kilowatts
936-in awarded capacity across all groups, and
937-no approved vendor may receive more than
938-20% of each Group's waitlist allocation.
939-(ii) Each applicant firm, upon
940-receiving an award of program capacity
941-proportionate to its waitlisted capacity,
942-may then determine which waitlisted
943-projects it chooses to be selected for a
944-contract award up to that capacity amount.
945-(iii) Assuming all other program
946-requirements are met, applicant firms may
947-adjust the nameplate capacity of applicant
948-projects without losing waitlist
949-eligibility, so long as no project is
950-greater than 2,000 kilowatts in size.
951-(iv) Assuming all other program
952-requirements are met, applicant firms may
953-
954-
955-adjust the expected production associated
956-with applicant projects, subject to
957-verification by the Program Administrator.
958-(C) After a review of affiliate
959-information and the current ordinal waitlists,
960-the Agency shall announce the nameplate
961-capacity award amounts associated with
962-applicant firms no later than 90 days after
963-the effective date of this amendatory Act of
964-the 102nd General Assembly.
965-(D) Applicant firms shall submit their
966-portfolio of projects used to satisfy those
967-contract awards no less than 90 days after the
968-Agency's announcement. The total nameplate
969-capacity of all projects used to satisfy that
970-portfolio shall be no greater than the
971-Agency's nameplate capacity award amount
972-associated with that applicant firm. An
973-applicant firm may decline, in whole or in
974-part, its nameplate capacity award without
975-penalty, with such unmet capacity rolled over
976-to the next block opening for project
977-selection under item (iii) of subparagraph (K)
978-of this subsection (c). Any projects not
979-included in an applicant firm's portfolio may
980-reapply without prejudice upon the next block
981-
982-
983-reopening for project selection under item
984-(iii) of subparagraph (K) of this subsection
985-(c).
986-(E) The renewable energy credit delivery
987-contract shall be subject to the contract and
988-payment terms outlined in item (iv) of
989-subparagraph (L) of this subsection (c).
990-Contract instruments used for this
991-subparagraph shall contain the following
992-terms:
993-(i) Renewable energy credit prices
994-shall be fixed, without further adjustment
995-under any other provision of this Act or
996-for any other reason, at 10% lower than
997-prices applicable to the last open block
998-for this category, inclusive of any adders
999-available for achieving a minimum of 50%
1000-of subscribers to the project's nameplate
1001-capacity being residential or small
1002-commercial customers with subscriptions of
1003-below 25 kilowatts in size;
1004-(ii) A requirement that a minimum of
1005-50% of subscribers to the project's
1006-nameplate capacity be residential or small
1007-commercial customers with subscriptions of
1008-below 25 kilowatts in size;
1009-
1010-
1011-(iii) Permission for the ability of a
1012-contract holder to substitute projects
1013-with other waitlisted projects without
1014-penalty should a project receive a
1015-non-binding estimate of costs to construct
1016-the interconnection facilities and any
1017-required distribution upgrades associated
1018-with that project of greater than 30 cents
1019-per watt AC of that project's nameplate
1020-capacity. In developing the applicable
1021-contract instrument, the Agency may
1022-consider whether other circumstances
1023-outside of the control of the applicant
1024-firm should also warrant project
1025-substitution rights.
1026-The Agency shall publish a finalized
1027-updated renewable energy credit delivery
1028-contract developed consistent with these terms
1029-and conditions no less than 30 days before
1030-applicant firms must submit their portfolio of
1031-projects pursuant to item (D).
1032-(F) To be eligible for an award, the
1033-applicant firm shall certify that not less
1034-than prevailing wage, as determined pursuant
1035-to the Illinois Prevailing Wage Act, was or
1036-will be paid to employees who are engaged in
1037-
1038-
1039-construction activities associated with a
1040-selected project.
1041-(4) The Agency shall open the first block of
1042-annual capacity for the category described in item
1043-(iv) of subparagraph (K) of this paragraph (1).
1044-The first block of annual capacity for item (iv)
1045-shall be for at least 50 megawatts of total
1046-nameplate capacity. Renewable energy credit prices
1047-shall be fixed, without further adjustment under
1048-any other provision of this Act or for any other
1049-reason, at the price in the last open block in the
1050-category described in item (ii) of subparagraph
1051-(K) of this paragraph (1). Pricing for future
1052-blocks of annual capacity for this category may be
1053-adjusted in the Agency's second revision to its
1054-Long-Term Renewable Resources Procurement Plan.
1055-Projects in this category shall be subject to the
1056-contract terms outlined in item (iv) of
1057-subparagraph (L) of this paragraph (1).
1058-(5) The Agency shall open the equivalent of 2
1059-years of annual capacity for the category
1060-described in item (v) of subparagraph (K) of this
1061-paragraph (1). The first block of annual capacity
1062-for item (v) shall be for at least 10 megawatts of
1063-total nameplate capacity. Notwithstanding the
1064-provisions of item (v) of subparagraph (K) of this
1065-
1066-
1067-paragraph (1), for the purpose of this initial
1068-block, the agency shall accept new project
1069-applications intended to increase the diversity of
1070-areas hosting community solar projects, the
1071-business models of projects, and the size of
1072-projects, as described by the Agency in its
1073-long-term renewable resources procurement plan
1074-that is approved as of the effective date of this
1075-amendatory Act of the 102nd General Assembly.
1076-Projects in this category shall be subject to the
1077-contract terms outlined in item (iii) of
1078-subsection (L) of this paragraph (1).
1079-(6) The Agency shall open the first blocks of
1080-annual capacity for the category described in item
1081-(vi) of subparagraph (K) of this paragraph (1),
1082-with allocations of capacity within the block
1083-generally matching the historical share of block
1084-capacity allocated between the category described
1085-in items (i) and (ii) of subparagraph (K) of this
1086-paragraph (1). The first two blocks of annual
1087-capacity for item (vi) shall be for at least 75
1088-megawatts of total nameplate capacity. The price
1089-of renewable energy credits for the blocks of
1090-capacity shall be 4% less than the price of the
1091-last open blocks in the categories described in
1092-items (i) and (ii) of subparagraph (K) of this
1093-
1094-
1095-paragraph (1). Pricing for future blocks of annual
1096-capacity for this category may be adjusted in the
1097-Agency's second revision to its Long-Term
1098-Renewable Resources Procurement Plan. Projects in
1099-this category shall be subject to the applicable
1100-contract terms outlined in items (ii) and (iii) of
1101-subparagraph (L) of this paragraph (1).
1102-(v) Upon the effective date of this amendatory Act
1103-of the 102nd General Assembly, for all competitive
1104-procurements and any procurements of renewable energy
1105-credit from new utility-scale wind and new
1106-utility-scale photovoltaic projects, the Agency shall
1107-procure indexed renewable energy credits and direct
1108-respondents to offer a strike price.
1109-(1) The purchase price of the indexed
1110-renewable energy credit payment shall be
1111-calculated for each settlement period. That
1112-payment, for any settlement period, shall be equal
1113-to the difference resulting from subtracting the
1114-strike price from the index price for that
1115-settlement period. If this difference results in a
1116-negative number, the indexed REC counterparty
1117-shall owe the seller the absolute value multiplied
1118-by the quantity of energy produced in the relevant
1119-settlement period. If this difference results in a
1120-positive number, the seller shall owe the indexed
1121-
1122-
1123-REC counterparty this amount multiplied by the
1124-quantity of energy produced in the relevant
1125-settlement period.
1126-(2) Parties shall cash settle every month,
1127-summing up all settlements (both positive and
1128-negative, if applicable) for the prior month.
1129-(3) To ensure funding in the annual budget
1130-established under subparagraph (E) for indexed
1131-renewable energy credit procurements for each year
1132-of the term of such contracts, which must have a
1133-minimum tenure of 20 calendar years, the
1134-procurement administrator, Agency, Commission
1135-staff, and procurement monitor shall quantify the
1136-annual cost of the contract by utilizing an
1137-industry-standard, third-party forward price curve
1138-for energy at the appropriate hub or load zone,
1139-including the estimated magnitude and timing of
1140-the price effects related to federal carbon
1141-controls. Each forward price curve shall contain a
1142-specific value of the forecasted market price of
1143-electricity for each annual delivery year of the
1144-contract. For procurement planning purposes, the
1145-impact on the annual budget for the cost of
1146-indexed renewable energy credits for each delivery
1147-year shall be determined as the expected annual
1148-contract expenditure for that year, equaling the
1149-
1150-
1151-difference between (i) the sum across all relevant
1152-contracts of the applicable strike price
1153-multiplied by contract quantity and (ii) the sum
1154-across all relevant contracts of the forward price
1155-curve for the applicable load zone for that year
1156-multiplied by contract quantity. The contracting
1157-utility shall not assume an obligation in excess
1158-of the estimated annual cost of the contracts for
1159-indexed renewable energy credits. Forward curves
1160-shall be revised on an annual basis as updated
1161-forward price curves are released and filed with
1162-the Commission in the proceeding approving the
1163-Agency's most recent long-term renewable resources
1164-procurement plan. If the expected contract spend
1165-is higher or lower than the total quantity of
1166-contracts multiplied by the forward price curve
1167-value for that year, the forward price curve shall
1168-be updated by the procurement administrator, in
1169-consultation with the Agency, Commission staff,
1170-and procurement monitors, using then-currently
1171-available price forecast data and additional
1172-budget dollars shall be obligated or reobligated
1173-as appropriate.
1174-(4) To ensure that indexed renewable energy
1175-credit prices remain predictable and affordable,
1176-the Agency may consider the institution of a price
1177-
1178-
1179-collar on REC prices paid under indexed renewable
1180-energy credit procurements establishing floor and
1181-ceiling REC prices applicable to indexed REC
1182-contract prices. Any price collars applicable to
1183-indexed REC procurements shall be proposed by the
1184-Agency through its long-term renewable resources
1185-procurement plan.
1186-(vi) All procurements under this subparagraph (G)
1187-shall comply with the geographic requirements in
1188-subparagraph (I) of this paragraph (1) and shall
1189-follow the procurement processes and procedures
1190-described in this Section and Section 16-111.5 of the
1191-Public Utilities Act to the extent practicable, and
1192-these processes and procedures may be expedited to
1193-accommodate the schedule established by this
1194-subparagraph (G).
1195-(H) The procurement of renewable energy resources for
1196-a given delivery year shall be reduced as described in
1197-this subparagraph (H) if an alternative retail electric
1198-supplier meets the requirements described in this
1199-subparagraph (H).
1200-(i) Within 45 days after June 1, 2017 (the
1201-effective date of Public Act 99-906), an alternative
1202-retail electric supplier or its successor shall submit
1203-an informational filing to the Illinois Commerce
1204-Commission certifying that, as of December 31, 2015,
1205-
1206-
1207-the alternative retail electric supplier owned one or
1208-more electric generating facilities that generates
1209-renewable energy resources as defined in Section 1-10
1210-of this Act, provided that such facilities are not
1211-powered by wind or photovoltaics, and the facilities
1212-generate one renewable energy credit for each
1213-megawatthour of energy produced from the facility.
1214-The informational filing shall identify each
1215-facility that was eligible to satisfy the alternative
1216-retail electric supplier's obligations under Section
1217-16-115D of the Public Utilities Act as described in
1218-this item (i).
1219-(ii) For a given delivery year, the alternative
1220-retail electric supplier may elect to supply its
1221-retail customers with renewable energy credits from
1222-the facility or facilities described in item (i) of
1223-this subparagraph (H) that continue to be owned by the
1224-alternative retail electric supplier.
1225-(iii) The alternative retail electric supplier
1226-shall notify the Agency and the applicable utility, no
1227-later than February 28 of the year preceding the
1228-applicable delivery year or 15 days after June 1, 2017
1229-(the effective date of Public Act 99-906), whichever
1230-is later, of its election under item (ii) of this
1231-subparagraph (H) to supply renewable energy credits to
1232-retail customers of the utility. Such election shall
1233-
1234-
1235-identify the amount of renewable energy credits to be
1236-supplied by the alternative retail electric supplier
1237-to the utility's retail customers and the source of
1238-the renewable energy credits identified in the
1239-informational filing as described in item (i) of this
1240-subparagraph (H), subject to the following
1241-limitations:
1242-For the delivery year beginning June 1, 2018,
1243-the maximum amount of renewable energy credits to
1244-be supplied by an alternative retail electric
1245-supplier under this subparagraph (H) shall be 68%
1246-multiplied by 25% multiplied by 14.5% multiplied
1247-by the amount of metered electricity
1248-(megawatt-hours) delivered by the alternative
1249-retail electric supplier to Illinois retail
1250-customers during the delivery year ending May 31,
1251-2016.
1252-For delivery years beginning June 1, 2019 and
1253-each year thereafter, the maximum amount of
1254-renewable energy credits to be supplied by an
1255-alternative retail electric supplier under this
1256-subparagraph (H) shall be 68% multiplied by 50%
1257-multiplied by 16% multiplied by the amount of
1258-metered electricity (megawatt-hours) delivered by
1259-the alternative retail electric supplier to
1260-Illinois retail customers during the delivery year
1261-
1262-
1263-ending May 31, 2016, provided that the 16% value
1264-shall increase by 1.5% each delivery year
1265-thereafter to 25% by the delivery year beginning
1266-June 1, 2025, and thereafter the 25% value shall
1267-apply to each delivery year.
1268-For each delivery year, the total amount of
1269-renewable energy credits supplied by all alternative
1270-retail electric suppliers under this subparagraph (H)
1271-shall not exceed 9% of the Illinois target renewable
1272-energy credit quantity. The Illinois target renewable
1273-energy credit quantity for the delivery year beginning
1274-June 1, 2018 is 14.5% multiplied by the total amount of
1275-metered electricity (megawatt-hours) delivered in the
1276-delivery year immediately preceding that delivery
1277-year, provided that the 14.5% shall increase by 1.5%
1278-each delivery year thereafter to 25% by the delivery
1279-year beginning June 1, 2025, and thereafter the 25%
1280-value shall apply to each delivery year.
1281-If the requirements set forth in items (i) through
1282-(iii) of this subparagraph (H) are met, the charges
1283-that would otherwise be applicable to the retail
1284-customers of the alternative retail electric supplier
1285-under paragraph (6) of this subsection (c) for the
1286-applicable delivery year shall be reduced by the ratio
1287-of the quantity of renewable energy credits supplied
1288-by the alternative retail electric supplier compared
1289-
1290-
1291-to that supplier's target renewable energy credit
1292-quantity. The supplier's target renewable energy
1293-credit quantity for the delivery year beginning June
1294-1, 2018 is 14.5% multiplied by the total amount of
1295-metered electricity (megawatt-hours) delivered by the
1296-alternative retail supplier in that delivery year,
1297-provided that the 14.5% shall increase by 1.5% each
1298-delivery year thereafter to 25% by the delivery year
1299-beginning June 1, 2025, and thereafter the 25% value
1300-shall apply to each delivery year.
1301-On or before April 1 of each year, the Agency shall
1302-annually publish a report on its website that
1303-identifies the aggregate amount of renewable energy
1304-credits supplied by alternative retail electric
1305-suppliers under this subparagraph (H).
1306-(I) The Agency shall design its long-term renewable
1307-energy procurement plan to maximize the State's interest
1308-in the health, safety, and welfare of its residents,
1309-including but not limited to minimizing sulfur dioxide,
1310-nitrogen oxide, particulate matter and other pollution
1311-that adversely affects public health in this State,
1312-increasing fuel and resource diversity in this State,
1313-enhancing the reliability and resiliency of the
1314-electricity distribution system in this State, meeting
1315-goals to limit carbon dioxide emissions under federal or
1316-State law, and contributing to a cleaner and healthier
1317-
1318-
1319-environment for the citizens of this State. In order to
1320-further these legislative purposes, renewable energy
1321-credits shall be eligible to be counted toward the
1322-renewable energy requirements of this subsection (c) if
1323-they are generated from facilities located in this State.
1324-The Agency may qualify renewable energy credits from
1325-facilities located in states adjacent to Illinois or
1326-renewable energy credits associated with the electricity
1327-generated by a utility-scale wind energy facility or
1328-utility-scale photovoltaic facility and transmitted by a
1329-qualifying direct current project described in subsection
1330-(b-5) of Section 8-406 of the Public Utilities Act to a
1331-delivery point on the electric transmission grid located
1332-in this State or a state adjacent to Illinois, if the
1333-generator demonstrates and the Agency determines that the
1334-operation of such facility or facilities will help promote
1335-the State's interest in the health, safety, and welfare of
1336-its residents based on the public interest criteria
1337-described above. For the purposes of this Section,
1338-renewable resources that are delivered via a high voltage
1339-direct current converter station located in Illinois shall
1340-be deemed generated in Illinois at the time and location
1341-the energy is converted to alternating current by the high
1342-voltage direct current converter station if the high
1343-voltage direct current transmission line: (i) after the
1344-effective date of this amendatory Act of the 102nd General
1345-
1346-
1347-Assembly, was constructed with a project labor agreement;
1348-(ii) is capable of transmitting electricity at 525kv;
1349-(iii) has an Illinois converter station located and
1350-interconnected in the region of the PJM Interconnection,
1351-LLC; (iv) does not operate as a public utility; and (v) if
1352-the high voltage direct current transmission line was
1353-energized after June 1, 2023. To ensure that the public
1354-interest criteria are applied to the procurement and given
1355-full effect, the Agency's long-term procurement plan shall
1356-describe in detail how each public interest factor shall
1357-be considered and weighted for facilities located in
1358-states adjacent to Illinois.
1359-(J) In order to promote the competitive development of
1360-renewable energy resources in furtherance of the State's
1361-interest in the health, safety, and welfare of its
1362-residents, renewable energy credits shall not be eligible
1363-to be counted toward the renewable energy requirements of
1364-this subsection (c) if they are sourced from a generating
1365-unit whose costs were being recovered through rates
1366-regulated by this State or any other state or states on or
1367-after January 1, 2017. Each contract executed to purchase
1368-renewable energy credits under this subsection (c) shall
1369-provide for the contract's termination if the costs of the
1370-generating unit supplying the renewable energy credits
1371-subsequently begin to be recovered through rates regulated
1372-by this State or any other state or states; and each
1373-
1374-
1375-contract shall further provide that, in that event, the
1376-supplier of the credits must return 110% of all payments
1377-received under the contract. Amounts returned under the
1378-requirements of this subparagraph (J) shall be retained by
1379-the utility and all of these amounts shall be used for the
1380-procurement of additional renewable energy credits from
1381-new wind or new photovoltaic resources as defined in this
1382-subsection (c). The long-term plan shall provide that
1383-these renewable energy credits shall be procured in the
1384-next procurement event.
1385-Notwithstanding the limitations of this subparagraph
1386-(J), renewable energy credits sourced from generating
1387-units that are constructed, purchased, owned, or leased by
1388-an electric utility as part of an approved project,
1389-program, or pilot under Section 1-56 of this Act shall be
1390-eligible to be counted toward the renewable energy
1391-requirements of this subsection (c), regardless of how the
1392-costs of these units are recovered. As long as a
1393-generating unit or an identifiable portion of a generating
1394-unit has not had and does not have its costs recovered
1395-through rates regulated by this State or any other state,
1396-HVDC renewable energy credits associated with that
1397-generating unit or identifiable portion thereof shall be
1398-eligible to be counted toward the renewable energy
1399-requirements of this subsection (c).
1400-(K) The long-term renewable resources procurement plan
1401-
1402-
1403-developed by the Agency in accordance with subparagraph
1404-(A) of this paragraph (1) shall include an Adjustable
1405-Block program for the procurement of renewable energy
1406-credits from new photovoltaic projects that are
1407-distributed renewable energy generation devices or new
1408-photovoltaic community renewable generation projects. The
1409-Adjustable Block program shall be generally designed to
1410-provide for the steady, predictable, and sustainable
1411-growth of new solar photovoltaic development in Illinois.
1412-To this end, the Adjustable Block program shall provide a
1413-transparent annual schedule of prices and quantities to
1414-enable the photovoltaic market to scale up and for
1415-renewable energy credit prices to adjust at a predictable
1416-rate over time. The prices set by the Adjustable Block
1417-program can be reflected as a set value or as the product
1418-of a formula.
1419-The Adjustable Block program shall include for each
1420-category of eligible projects for each delivery year: a
1421-single block of nameplate capacity, a price for renewable
1422-energy credits within that block, and the terms and
1423-conditions for securing a spot on a waitlist once the
1424-block is fully committed or reserved. Except as outlined
1425-below, the waitlist of projects in a given year will carry
1426-over to apply to the subsequent year when another block is
1427-opened. Only projects energized on or after June 1, 2017
1428-shall be eligible for the Adjustable Block program. For
1429-
1430-
1431-each category for each delivery year the Agency shall
1432-determine the amount of generation capacity in each block,
1433-and the purchase price for each block, provided that the
1434-purchase price provided and the total amount of generation
1435-in all blocks for all categories shall be sufficient to
1436-meet the goals in this subsection (c). The Agency shall
1437-strive to issue a single block sized to provide for
1438-stability and market growth. The Agency shall establish
1439-program eligibility requirements that ensure that projects
1440-that enter the program are sufficiently mature to indicate
1441-a demonstrable path to completion. The Agency may
1442-periodically review its prior decisions establishing the
1443-amount of generation capacity in each block, and the
1444-purchase price for each block, and may propose, on an
1445-expedited basis, changes to these previously set values,
1446-including but not limited to redistributing these amounts
1447-and the available funds as necessary and appropriate,
1448-subject to Commission approval as part of the periodic
1449-plan revision process described in Section 16-111.5 of the
1450-Public Utilities Act. The Agency may define different
1451-block sizes, purchase prices, or other distinct terms and
1452-conditions for projects located in different utility
1453-service territories if the Agency deems it necessary to
1454-meet the goals in this subsection (c).
1455-The Adjustable Block program shall include the
1456-following categories in at least the following amounts:
1457-
1458-
1459-(i) At least 20% from distributed renewable energy
1460-generation devices with a nameplate capacity of no
1461-more than 25 kilowatts.
1462-(ii) At least 20% from distributed renewable
1463-energy generation devices with a nameplate capacity of
1464-more than 25 kilowatts and no more than 5,000
1465-kilowatts. The Agency may create sub-categories within
1466-this category to account for the differences between
1467-projects for small commercial customers, large
1468-commercial customers, and public or non-profit
1469-customers.
1470-(iii) At least 30% from photovoltaic community
1471-renewable generation projects. Capacity for this
1472-category for the first 2 delivery years after the
1473-effective date of this amendatory Act of the 102nd
1474-General Assembly shall be allocated to waitlist
1475-projects as provided in paragraph (3) of item (iv) of
1476-subparagraph (G). Starting in the third delivery year
1477-after the effective date of this amendatory Act of the
1478-102nd General Assembly or earlier if the Agency
1479-determines there is additional capacity needed for to
1480-meet previous delivery year requirements, the
1481-following shall apply:
1482-(1) the Agency shall select projects on a
1483-first-come, first-serve basis, however the Agency
1484-may suggest additional methods to prioritize
1485-
1486-
1487-projects that are submitted at the same time;
1488-(2) projects shall have subscriptions of 25 kW
1489-or less for at least 50% of the facility's
1490-nameplate capacity and the Agency shall price the
1491-renewable energy credits with that as a factor;
1492-(3) projects shall not be colocated with one
1493-or more other community renewable generation
1494-projects, as defined in the Agency's first revised
1495-long-term renewable resources procurement plan
1496-approved by the Commission on February 18, 2020,
1497-such that the aggregate nameplate capacity exceeds
1498-5,000 kilowatts; and
1499-(4) projects greater than 2 MW may not apply
1500-until after the approval of the Agency's revised
1501-Long-Term Renewable Resources Procurement Plan
1502-after the effective date of this amendatory Act of
1503-the 102nd General Assembly.
1504-(iv) At least 15% from distributed renewable
1505-generation devices or photovoltaic community renewable
1506-generation projects installed on at public school land
1507-schools. The Agency may create subcategories within
1508-this category to account for the differences between
1509-project size or location. Projects located within
1510-environmental justice communities or within
1511-Organizational Units that fall within Tier 1 or Tier 2
1512-shall be given priority. Each of the Agency's periodic
1513-
1514-
1515-updates to its long-term renewable resources
1516-procurement plan to incorporate the procurement
1517-described in this subparagraph (iv) shall also include
1518-the proposed quantities or blocks, pricing, and
1519-contract terms applicable to the procurement as
1520-indicated herein. In each such update and procurement,
1521-the Agency shall set the renewable energy credit price
1522-and establish payment terms for the renewable energy
1523-credits procured pursuant to this subparagraph (iv)
1524-that make it feasible and affordable for public
1525-schools to install photovoltaic distributed renewable
1526-energy devices on their premises, including, but not
1527-limited to, those public schools subject to the
1528-prioritization provisions of this subparagraph. For
1529-the purposes of this item (iv):
1530-"Environmental Justice Community" shall have the
1531-same meaning set forth in the Agency's long-term
1532-renewable resources procurement plan;
1533-"Organization Unit", "Tier 1" and "Tier 2" shall
1534-have the meanings set for in Section 18-8.15 of the
1535-School Code;
1536-"Public schools" shall have the meaning set forth
1537-in Section 1-3 of the School Code and includes public
1538-institutions of higher education, as defined in the
1539-Board of Higher Education Act.
1540-(v) At least 5% from community-driven community
1541-
1542-
1543-solar projects intended to provide more direct and
1544-tangible connection and benefits to the communities
1545-which they serve or in which they operate and,
1546-additionally, to increase the variety of community
1547-solar locations, models, and options in Illinois. As
1548-part of its long-term renewable resources procurement
1549-plan, the Agency shall develop selection criteria for
1550-projects participating in this category. Nothing in
1551-this Section shall preclude the Agency from creating a
1552-selection process that maximizes community ownership
1553-and community benefits in selecting projects to
1554-receive renewable energy credits. Selection criteria
1555-shall include:
1556-(1) community ownership or community
1557-wealth-building;
1558-(2) additional direct and indirect community
1559-benefit, beyond project participation as a
1560-subscriber, including, but not limited to,
1561-economic, environmental, social, cultural, and
1562-physical benefits;
1563-(3) meaningful involvement in project
1564-organization and development by community members
1565-or nonprofit organizations or public entities
1566-located in or serving the community;
1567-(4) engagement in project operations and
1568-management by nonprofit organizations, public
1569-
1570-
1571-entities, or community members; and
1572-(5) whether a project is developed in response
1573-to a site-specific RFP developed by community
1574-members or a nonprofit organization or public
1575-entity located in or serving the community.
1576-Selection criteria may also prioritize projects
1577-that:
1578-(1) are developed in collaboration with or to
1579-provide complementary opportunities for the Clean
1580-Jobs Workforce Network Program, the Illinois
1581-Climate Works Preapprenticeship Program, the
1582-Returning Residents Clean Jobs Training Program,
1583-the Clean Energy Contractor Incubator Program, or
1584-the Clean Energy Primes Contractor Accelerator
1585-Program;
1586-(2) increase the diversity of locations of
1587-community solar projects in Illinois, including by
1588-locating in urban areas and population centers;
1589-(3) are located in Equity Investment Eligible
1590-Communities;
1591-(4) are not greenfield projects;
1592-(5) serve only local subscribers;
1593-(6) have a nameplate capacity that does not
1594-exceed 500 kW;
1595-(7) are developed by an equity eligible
1596-contractor; or
1597-
1598-
1599-(8) otherwise meaningfully advance the goals
1600-of providing more direct and tangible connection
1601-and benefits to the communities which they serve
1602-or in which they operate and increasing the
1603-variety of community solar locations, models, and
1604-options in Illinois.
1605-For the purposes of this item (v):
1606-"Community" means a social unit in which people
1607-come together regularly to effect change; a social
1608-unit in which participants are marked by a cooperative
1609-spirit, a common purpose, or shared interests or
1610-characteristics; or a space understood by its
1611-residents to be delineated through geographic
1612-boundaries or landmarks.
1613-"Community benefit" means a range of services and
1614-activities that provide affirmative, economic,
1615-environmental, social, cultural, or physical value to
1616-a community; or a mechanism that enables economic
1617-development, high-quality employment, and education
1618-opportunities for local workers and residents, or
1619-formal monitoring and oversight structures such that
1620-community members may ensure that those services and
1621-activities respond to local knowledge and needs.
1622-"Community ownership" means an arrangement in
1623-which an electric generating facility is, or over time
1624-will be, in significant part, owned collectively by
1625-
1626-
1627-members of the community to which an electric
1628-generating facility provides benefits; members of that
1629-community participate in decisions regarding the
1630-governance, operation, maintenance, and upgrades of
1631-and to that facility; and members of that community
1632-benefit from regular use of that facility.
1633-Terms and guidance within these criteria that are
1634-not defined in this item (v) shall be defined by the
1635-Agency, with stakeholder input, during the development
1636-of the Agency's long-term renewable resources
1637-procurement plan. The Agency shall develop regular
1638-opportunities for projects to submit applications for
1639-projects under this category, and develop selection
1640-criteria that gives preference to projects that better
1641-meet individual criteria as well as projects that
1642-address a higher number of criteria.
1643-(vi) At least 10% from distributed renewable
1644-energy generation devices, which includes distributed
1645-renewable energy devices with a nameplate capacity
1646-under 5,000 kilowatts or photovoltaic community
1647-renewable generation projects, from applicants that
1648-are equity eligible contractors. The Agency may create
1649-subcategories within this category to account for the
1650-differences between project size and type. The Agency
1651-shall propose to increase the percentage in this item
1652-(vi) over time to 40% based on factors, including, but
1653-
1654-
1655-not limited to, the number of equity eligible
1656-contractors and capacity used in this item (vi) in
1657-previous delivery years.
1658-The Agency shall propose a payment structure for
1659-contracts executed pursuant to this paragraph under
1660-which, upon a demonstration of qualification or need,
1661-applicant firms are advanced capital disbursed after
1662-contract execution but before the contracted project's
1663-energization. The amount or percentage of capital
1664-advanced prior to project energization shall be
1665-sufficient to both cover any increase in development
1666-costs resulting from prevailing wage requirements or
1667-project-labor agreements, and designed to overcome
1668-barriers in access to capital faced by equity eligible
1669-contractors. The amount or percentage of advanced
1670-capital may vary by subcategory within this category
1671-and by an applicant's demonstration of need, with such
1672-levels to be established through the Long-Term
1673-Renewable Resources Procurement Plan authorized under
1674-subparagraph (A) of paragraph (1) of subsection (c) of
1675-this Section.
1676-Contracts developed featuring capital advanced
1677-prior to a project's energization shall feature
1678-provisions to ensure both the successful development
1679-of applicant projects and the delivery of the
1680-renewable energy credits for the full term of the
1681-
1682-
1683-contract, including ongoing collateral requirements
1684-and other provisions deemed necessary by the Agency,
1685-and may include energization timelines longer than for
1686-comparable project types. The percentage or amount of
1687-capital advanced prior to project energization shall
1688-not operate to increase the overall contract value,
1689-however contracts executed under this subparagraph may
1690-feature renewable energy credit prices higher than
1691-those offered to similar projects participating in
1692-other categories. Capital advanced prior to
1693-energization shall serve to reduce the ratable
1694-payments made after energization under items (ii) and
1695-(iii) of subparagraph (L) or payments made for each
1696-renewable energy credit delivery under item (iv) of
1697-subparagraph (L).
1698-(vii) The remaining capacity shall be allocated by
1699-the Agency in order to respond to market demand. The
1700-Agency shall allocate any discretionary capacity prior
1701-to the beginning of each delivery year.
1702-To the extent there is uncontracted capacity from any
1703-block in any of categories (i) through (vi) at the end of a
1704-delivery year, the Agency shall redistribute that capacity
1705-to one or more other categories giving priority to
1706-categories with projects on a waitlist. The redistributed
1707-capacity shall be added to the annual capacity in the
1708-subsequent delivery year, and the price for renewable
1709-
1710-
1711-energy credits shall be the price for the new delivery
1712-year. Redistributed capacity shall not be considered
1713-redistributed when determining whether the goals in this
1714-subsection (K) have been met.
1715-Notwithstanding anything to the contrary, as the
1716-Agency increases the capacity in item (vi) to 40% over
1717-time, the Agency may reduce the capacity of items (i)
1718-through (v) proportionate to the capacity of the
1719-categories of projects in item (vi), to achieve a balance
1720-of project types.
1721-The Adjustable Block program shall be designed to
1722-ensure that renewable energy credits are procured from
1723-projects in diverse locations and are not concentrated in
1724-a few regional areas.
1725-(L) Notwithstanding provisions for advancing capital
1726-prior to project energization found in item (vi) of
1727-subparagraph (K), the procurement of photovoltaic
1728-renewable energy credits under items (i) through (vi) of
1729-subparagraph (K) of this paragraph (1) shall otherwise be
1730-subject to the following contract and payment terms:
1731-(i) (Blank).
1732-(ii) For those renewable energy credits that
1733-qualify and are procured under item (i) of
1734-subparagraph (K) of this paragraph (1), and any
1735-similar category projects that are procured under item
1736-(vi) of subparagraph (K) of this paragraph (1) that
1737-
1738-
1739-qualify and are procured under item (vi), the contract
1740-length shall be 15 years. The renewable energy credit
1741-delivery contract value shall be paid in full, based
1742-on the estimated generation during the first 15 years
1743-of operation, by the contracting utilities at the time
1744-that the facility producing the renewable energy
1745-credits is interconnected at the distribution system
1746-level of the utility and verified as energized and
1747-compliant by the Program Administrator. The electric
1748-utility shall receive and retire all renewable energy
1749-credits generated by the project for the first 15
1750-years of operation. Renewable energy credits generated
1751-by the project thereafter shall not be transferred
1752-under the renewable energy credit delivery contract
1753-with the counterparty electric utility.
1754-(iii) For those renewable energy credits that
1755-qualify and are procured under item (ii) and (v) of
1756-subparagraph (K) of this paragraph (1) and any like
1757-projects similar category that qualify and are
1758-procured under item (vi), the contract length shall be
1759-15 years. 15% of the renewable energy credit delivery
1760-contract value, based on the estimated generation
1761-during the first 15 years of operation, shall be paid
1762-by the contracting utilities at the time that the
1763-facility producing the renewable energy credits is
1764-interconnected at the distribution system level of the
1765-
1766-
1767-utility and verified as energized and compliant by the
1768-Program Administrator. The remaining portion shall be
1769-paid ratably over the subsequent 6-year period. The
1770-electric utility shall receive and retire all
1771-renewable energy credits generated by the project for
1772-the first 15 years of operation. Renewable energy
1773-credits generated by the project thereafter shall not
1774-be transferred under the renewable energy credit
1775-delivery contract with the counterparty electric
1776-utility.
1777-(iv) For those renewable energy credits that
1778-qualify and are procured under items (iii) and (iv) of
1779-subparagraph (K) of this paragraph (1), and any like
1780-projects that qualify and are procured under item
1781-(vi), the renewable energy credit delivery contract
1782-length shall be 20 years and shall be paid over the
1783-delivery term, not to exceed during each delivery year
1784-the contract price multiplied by the estimated annual
1785-renewable energy credit generation amount. If
1786-generation of renewable energy credits during a
1787-delivery year exceeds the estimated annual generation
1788-amount, the excess renewable energy credits shall be
1789-carried forward to future delivery years and shall not
1790-expire during the delivery term. If generation of
1791-renewable energy credits during a delivery year,
1792-including carried forward excess renewable energy
1793-
1794-
1795-credits, if any, is less than the estimated annual
1796-generation amount, payments during such delivery year
1797-will not exceed the quantity generated plus the
1798-quantity carried forward multiplied by the contract
1799-price. The electric utility shall receive all
1800-renewable energy credits generated by the project
1801-during the first 20 years of operation and retire all
1802-renewable energy credits paid for under this item (iv)
1803-and return at the end of the delivery term all
1804-renewable energy credits that were not paid for.
1805-Renewable energy credits generated by the project
1806-thereafter shall not be transferred under the
1807-renewable energy credit delivery contract with the
1808-counterparty electric utility. Notwithstanding the
1809-preceding, for those projects participating under item
1810-(iii) of subparagraph (K), the contract price for a
1811-delivery year shall be based on subscription levels as
1812-measured on the higher of the first business day of the
1813-delivery year or the first business day 6 months after
1814-the first business day of the delivery year.
1815-Subscription of 90% of nameplate capacity or greater
1816-shall be deemed to be fully subscribed for the
1817-purposes of this item (iv). For projects receiving a
1818-20-year delivery contract, REC prices shall be
1819-adjusted downward for consistency with the incentive
1820-levels previously determined to be necessary to
1821-
1822-
1823-support projects under 15-year delivery contracts,
1824-taking into consideration any additional new
1825-requirements placed on the projects, including, but
1826-not limited to, labor standards.
1827-(v) Each contract shall include provisions to
1828-ensure the delivery of the estimated quantity of
1829-renewable energy credits and ongoing collateral
1830-requirements and other provisions deemed appropriate
1831-by the Agency.
1832-(vi) The utility shall be the counterparty to the
1833-contracts executed under this subparagraph (L) that
1834-are approved by the Commission under the process
1835-described in Section 16-111.5 of the Public Utilities
1836-Act. No contract shall be executed for an amount that
1837-is less than one renewable energy credit per year.
1838-(vii) If, at any time, approved applications for
1839-the Adjustable Block program exceed funds collected by
1840-the electric utility or would cause the Agency to
1841-exceed the limitation described in subparagraph (E) of
1842-this paragraph (1) on the amount of renewable energy
1843-resources that may be procured, then the Agency may
1844-consider future uncommitted funds to be reserved for
1845-these contracts on a first-come, first-served basis.
1846-(viii) Nothing in this Section shall require the
1847-utility to advance any payment or pay any amounts that
1848-exceed the actual amount of revenues anticipated to be
1849-
1850-
1851-collected by the utility under paragraph (6) of this
1852-subsection (c) and subsection (k) of Section 16-108 of
1853-the Public Utilities Act inclusive of eligible funds
1854-collected in prior years and alternative compliance
1855-payments for use by the utility, and contracts
1856-executed under this Section shall expressly
1857-incorporate this limitation.
1858-(ix) Notwithstanding other requirements of this
1859-subparagraph (L), no modification shall be required to
1860-Adjustable Block program contracts if they were
1861-already executed prior to the establishment, approval,
1862-and implementation of new contract forms as a result
1863-of this amendatory Act of the 102nd General Assembly.
1864-(x) Contracts may be assignable, but only to
1865-entities first deemed by the Agency to have met
1866-program terms and requirements applicable to direct
1867-program participation. In developing contracts for the
1868-delivery of renewable energy credits, the Agency shall
1869-be permitted to establish fees applicable to each
1870-contract assignment.
1871-(M) The Agency shall be authorized to retain one or
1872-more experts or expert consulting firms to develop,
1873-administer, implement, operate, and evaluate the
1874-Adjustable Block program described in subparagraph (K) of
1875-this paragraph (1), and the Agency shall retain the
1876-consultant or consultants in the same manner, to the
1877-
1878-
1879-extent practicable, as the Agency retains others to
1880-administer provisions of this Act, including, but not
1881-limited to, the procurement administrator. The selection
1882-of experts and expert consulting firms and the procurement
1883-process described in this subparagraph (M) are exempt from
1884-the requirements of Section 20-10 of the Illinois
1885-Procurement Code, under Section 20-10 of that Code. The
1886-Agency shall strive to minimize administrative expenses in
1887-the implementation of the Adjustable Block program.
1888-The Program Administrator may charge application fees
1889-to participating firms to cover the cost of program
1890-administration. Any application fee amounts shall
1891-initially be determined through the long-term renewable
1892-resources procurement plan, and modifications to any
1893-application fee that deviate more than 25% from the
1894-Commission's approved value must be approved by the
1895-Commission as a long-term plan revision under Section
1896-16-111.5 of the Public Utilities Act. The Agency shall
1897-consider stakeholder feedback when making adjustments to
1898-application fees and shall notify stakeholders in advance
1899-of any planned changes.
1900-In addition to covering the costs of program
1901-administration, the Agency, in conjunction with its
1902-Program Administrator, may also use the proceeds of such
1903-fees charged to participating firms to support public
1904-education and ongoing regional and national coordination
1905-
1906-
1907-with nonprofit organizations, public bodies, and others
1908-engaged in the implementation of renewable energy
1909-incentive programs or similar initiatives. This work may
1910-include developing papers and reports, hosting regional
1911-and national conferences, and other work deemed necessary
1912-by the Agency to position the State of Illinois as a
1913-national leader in renewable energy incentive program
1914-development and administration.
1915-The Agency and its consultant or consultants shall
1916-monitor block activity, share program activity with
1917-stakeholders and conduct quarterly meetings to discuss
1918-program activity and market conditions. If necessary, the
1919-Agency may make prospective administrative adjustments to
1920-the Adjustable Block program design, such as making
1921-adjustments to purchase prices as necessary to achieve the
1922-goals of this subsection (c). Program modifications to any
1923-block price that do not deviate from the Commission's
1924-approved value by more than 10% shall take effect
1925-immediately and are not subject to Commission review and
1926-approval. Program modifications to any block price that
1927-deviate more than 10% from the Commission's approved value
1928-must be approved by the Commission as a long-term plan
1929-amendment under Section 16-111.5 of the Public Utilities
1930-Act. The Agency shall consider stakeholder feedback when
1931-making adjustments to the Adjustable Block design and
1932-shall notify stakeholders in advance of any planned
1933-
1934-
1935-changes.
1936-The Agency and its program administrators for both the
1937-Adjustable Block program and the Illinois Solar for All
1938-Program, consistent with the requirements of this
1939-subsection (c) and subsection (b) of Section 1-56 of this
1940-Act, shall propose the Adjustable Block program terms,
1941-conditions, and requirements, including the prices to be
1942-paid for renewable energy credits, where applicable, and
1943-requirements applicable to participating entities and
1944-project applications, through the development, review, and
1945-approval of the Agency's long-term renewable resources
1946-procurement plan described in this subsection (c) and
1947-paragraph (5) of subsection (b) of Section 16-111.5 of the
1948-Public Utilities Act. Terms, conditions, and requirements
1949-for program participation shall include the following:
1950-(i) The Agency shall establish a registration
1951-process for entities seeking to qualify for
1952-program-administered incentive funding and establish
1953-baseline qualifications for vendor approval. The
1954-Agency must maintain a list of approved entities on
1955-each program's website, and may revoke a vendor's
1956-ability to receive program-administered incentive
1957-funding status upon a determination that the vendor
1958-failed to comply with contract terms, the law, or
1959-other program requirements.
1960-(ii) The Agency shall establish program
1961-
1962-
1963-requirements and minimum contract terms to ensure
1964-projects are properly installed and produce their
1965-expected amounts of energy. Program requirements may
1966-include on-site inspections and photo documentation of
1967-projects under construction. The Agency may require
1968-repairs, alterations, or additions to remedy any
1969-material deficiencies discovered. Vendors who have a
1970-disproportionately high number of deficient systems
1971-may lose their eligibility to continue to receive
1972-State-administered incentive funding through Agency
1973-programs and procurements.
1974-(iii) To discourage deceptive marketing or other
1975-bad faith business practices, the Agency may require
1976-direct program participants, including agents
1977-operating on their behalf, to provide standardized
1978-disclosures to a customer prior to that customer's
1979-execution of a contract for the development of a
1980-distributed generation system or a subscription to a
1981-community solar project.
1982-(iv) The Agency shall establish one or multiple
1983-Consumer Complaints Centers to accept complaints
1984-regarding businesses that participate in, or otherwise
1985-benefit from, State-administered incentive funding
1986-through Agency-administered programs. The Agency shall
1987-maintain a public database of complaints with any
1988-confidential or particularly sensitive information
1989-
1990-
1991-redacted from public entries.
1992-(v) Through a filing in the proceeding for the
1993-approval of its long-term renewable energy resources
1994-procurement plan, the Agency shall provide an annual
1995-written report to the Illinois Commerce Commission
1996-documenting the frequency and nature of complaints and
1997-any enforcement actions taken in response to those
1998-complaints.
1999-(vi) The Agency shall schedule regular meetings
2000-with representatives of the Office of the Attorney
2001-General, the Illinois Commerce Commission, consumer
2002-protection groups, and other interested stakeholders
2003-to share relevant information about consumer
2004-protection, project compliance, and complaints
2005-received.
2006-(vii) To the extent that complaints received
2007-implicate the jurisdiction of the Office of the
2008-Attorney General, the Illinois Commerce Commission, or
2009-local, State, or federal law enforcement, the Agency
2010-shall also refer complaints to those entities as
2011-appropriate.
2012-(N) The Agency shall establish the terms, conditions,
2013-and program requirements for photovoltaic community
2014-renewable generation projects with a goal to expand access
2015-to a broader group of energy consumers, to ensure robust
2016-participation opportunities for residential and small
2017-
2018-
2019-commercial customers and those who cannot install
2020-renewable energy on their own properties. Subject to
2021-reasonable limitations, any plan approved by the
2022-Commission shall allow subscriptions to community
2023-renewable generation projects to be portable and
2024-transferable. For purposes of this subparagraph (N),
2025-"portable" means that subscriptions may be retained by the
2026-subscriber even if the subscriber relocates or changes its
2027-address within the same utility service territory; and
2028-"transferable" means that a subscriber may assign or sell
2029-subscriptions to another person within the same utility
2030-service territory.
2031-Through the development of its long-term renewable
2032-resources procurement plan, the Agency may consider
2033-whether community renewable generation projects utilizing
2034-technologies other than photovoltaics should be supported
2035-through State-administered incentive funding, and may
2036-issue requests for information to gauge market demand.
2037-Electric utilities shall provide a monetary credit to
2038-a subscriber's subsequent bill for service for the
2039-proportional output of a community renewable generation
2040-project attributable to that subscriber as specified in
2041-Section 16-107.5 of the Public Utilities Act.
2042-The Agency shall purchase renewable energy credits
2043-from subscribed shares of photovoltaic community renewable
2044-generation projects through the Adjustable Block program
2045-
2046-
2047-described in subparagraph (K) of this paragraph (1) or
2048-through the Illinois Solar for All Program described in
2049-Section 1-56 of this Act. The electric utility shall
2050-purchase any unsubscribed energy from community renewable
2051-generation projects that are Qualifying Facilities ("QF")
2052-under the electric utility's tariff for purchasing the
2053-output from QFs under Public Utilities Regulatory Policies
2054-Act of 1978.
2055-The owners of and any subscribers to a community
2056-renewable generation project shall not be considered
2057-public utilities or alternative retail electricity
2058-suppliers under the Public Utilities Act solely as a
2059-result of their interest in or subscription to a community
2060-renewable generation project and shall not be required to
2061-become an alternative retail electric supplier by
2062-participating in a community renewable generation project
2063-with a public utility.
2064-(O) For the delivery year beginning June 1, 2018, the
2065-long-term renewable resources procurement plan required by
2066-this subsection (c) shall provide for the Agency to
2067-procure contracts to continue offering the Illinois Solar
2068-for All Program described in subsection (b) of Section
2069-1-56 of this Act, and the contracts approved by the
2070-Commission shall be executed by the utilities that are
2071-subject to this subsection (c). The long-term renewable
2072-resources procurement plan shall allocate up to
2073-
2074-
2075-$50,000,000 per delivery year to fund the programs, and
2076-the plan shall determine the amount of funding to be
2077-apportioned to the programs identified in subsection (b)
2078-of Section 1-56 of this Act; provided that for the
2079-delivery years beginning June 1, 2021, June 1, 2022, and
2080-June 1, 2023, the long-term renewable resources
2081-procurement plan may average the annual budgets over a
2082-3-year period to account for program ramp-up. For the
2083-delivery years beginning June 1, 2021, June 1, 2024, June
2084-1, 2027, and June 1, 2030 and additional $10,000,000 shall
2085-be provided to the Department of Commerce and Economic
2086-Opportunity to implement the workforce development
2087-programs and reporting as outlined in Section 16-108.12 of
2088-the Public Utilities Act. In making the determinations
2089-required under this subparagraph (O), the Commission shall
2090-consider the experience and performance under the programs
2091-and any evaluation reports. The Commission shall also
2092-provide for an independent evaluation of those programs on
2093-a periodic basis that are funded under this subparagraph
2094-(O).
2095-(P) All programs and procurements under this
2096-subsection (c) shall be designed to encourage
2097-participating projects to use a diverse and equitable
2098-workforce and a diverse set of contractors, including
2099-minority-owned businesses, disadvantaged businesses,
2100-trade unions, graduates of any workforce training programs
2101-
2102-
2103-administered under this Act, and small businesses.
2104-The Agency shall develop a method to optimize
2105-procurement of renewable energy credits from proposed
2106-utility-scale projects that are located in communities
2107-eligible to receive Energy Transition Community Grants
2108-pursuant to Section 10-20 of the Energy Community
2109-Reinvestment Act. If this requirement conflicts with other
2110-provisions of law or the Agency determines that full
2111-compliance with the requirements of this subparagraph (P)
2112-would be unreasonably costly or administratively
2113-impractical, the Agency is to propose alternative
2114-approaches to achieve development of renewable energy
2115-resources in communities eligible to receive Energy
2116-Transition Community Grants pursuant to Section 10-20 of
2117-the Energy Community Reinvestment Act or seek an exemption
2118-from this requirement from the Commission.
2119-(Q) Each facility listed in subitems (i) through
2120-(viii) of item (1) of this subparagraph (Q) for which a
2121-renewable energy credit delivery contract is signed after
2122-the effective date of this amendatory Act of the 102nd
2123-General Assembly is subject to the following requirements
2124-through the Agency's long-term renewable resources
2125-procurement plan:
2126-(1) Each facility shall be subject to the
2127-prevailing wage requirements included in the
2128-Prevailing Wage Act. The Agency shall require
2129-
2130-
2131-verification that all construction performed on the
2132-facility by the renewable energy credit delivery
2133-contract holder, its contractors, or its
2134-subcontractors relating to construction of the
2135-facility is performed by construction employees
2136-receiving an amount for that work equal to or greater
2137-than the general prevailing rate, as that term is
2138-defined in Section 3 of the Prevailing Wage Act. For
2139-purposes of this item (1), "house of worship" means
2140-property that is both (1) used exclusively by a
2141-religious society or body of persons as a place for
2142-religious exercise or religious worship and (2)
2143-recognized as exempt from taxation pursuant to Section
2144-15-40 of the Property Tax Code. This item (1) shall
2145-apply to any the following:
2146-(i) all new utility-scale wind projects;
2147-(ii) all new utility-scale photovoltaic
2148-projects;
2149-(iii) all new brownfield photovoltaic
2150-projects;
2151-(iv) all new photovoltaic community renewable
2152-energy facilities that qualify for item (iii) of
2153-subparagraph (K) of this paragraph (1);
2154-(v) all new community driven community
2155-photovoltaic projects that qualify for item (v) of
2156-subparagraph (K) of this paragraph (1);
2157-
2158-
2159-(vi) all new photovoltaic projects on public
2160-school land distributed renewable energy
2161-generation devices on schools that qualify for
2162-item (iv) of subparagraph (K) of this paragraph
2163-(1);
2164-(vii) all new photovoltaic distributed
2165-renewable energy generation devices that (1)
2166-qualify for item (i) of subparagraph (K) of this
2167-paragraph (1); (2) are not projects that serve
2168-single-family or multi-family residential
2169-buildings; and (3) are not houses of worship where
2170-the aggregate capacity including collocated
2171-projects would not exceed 100 kilowatts;
2172-(viii) all new photovoltaic distributed
2173-renewable energy generation devices that (1)
2174-qualify for item (ii) of subparagraph (K) of this
2175-paragraph (1); (2) are not projects that serve
2176-single-family or multi-family residential
2177-buildings; and (3) are not houses of worship where
2178-the aggregate capacity including collocated
2179-projects would not exceed 100 kilowatts.
2180-(2) Renewable energy credits procured from new
2181-utility-scale wind projects, new utility-scale solar
2182-projects, and new brownfield solar projects pursuant
2183-to Agency procurement events occurring after the
2184-effective date of this amendatory Act of the 102nd
2185-
2186-
2187-General Assembly must be from facilities built by
2188-general contractors that must enter into a project
2189-labor agreement, as defined by this Act, prior to
2190-construction. The project labor agreement shall be
2191-filed with the Director in accordance with procedures
2192-established by the Agency through its long-term
2193-renewable resources procurement plan. Any information
2194-submitted to the Agency in this item (2) shall be
2195-considered commercially sensitive information. At a
2196-minimum, the project labor agreement must provide the
2197-names, addresses, and occupations of the owner of the
2198-plant and the individuals representing the labor
2199-organization employees participating in the project
2200-labor agreement consistent with the Project Labor
2201-Agreements Act. The agreement must also specify the
2202-terms and conditions as defined by this Act.
2203-(3) It is the intent of this Section to ensure that
2204-economic development occurs across Illinois
2205-communities, that emerging businesses may grow, and
2206-that there is improved access to the clean energy
2207-economy by persons who have greater economic burdens
2208-to success. The Agency shall take into consideration
2209-the unique cost of compliance of this subparagraph (Q)
2210-that might be borne by equity eligible contractors,
2211-shall include such costs when determining the price of
2212-renewable energy credits in the Adjustable Block
2213-
2214-
2215-program, and shall take such costs into consideration
2216-in a nondiscriminatory manner when comparing bids for
2217-competitive procurements. The Agency shall consider
2218-costs associated with compliance whether in the
2219-development, financing, or construction of projects.
2220-The Agency shall periodically review the assumptions
2221-in these costs and may adjust prices, in compliance
2222-with subparagraph (M) of this paragraph (1).
2223-(R) In its long-term renewable resources procurement
2224-plan, the Agency shall establish a self-direct renewable
2225-portfolio standard compliance program for eligible
2226-self-direct customers that purchase renewable energy
2227-credits from utility-scale wind and solar projects through
2228-long-term agreements for purchase of renewable energy
2229-credits as described in this Section. Such long-term
2230-agreements may include the purchase of energy or other
2231-products on a physical or financial basis and may involve
2232-an alternative retail electric supplier as defined in
2233-Section 16-102 of the Public Utilities Act. This program
2234-shall take effect in the delivery year commencing June 1,
2235-2023.
2236-(1) For the purposes of this subparagraph:
2237-"Eligible self-direct customer" means any retail
2238-customers of an electric utility that serves 3,000,000
2239-or more retail customers in the State and whose total
2240-highest 30-minute demand was more than 10,000
2241-
2242-
2243-kilowatts, or any retail customers of an electric
2244-utility that serves less than 3,000,000 retail
2245-customers but more than 500,000 retail customers in
2246-the State and whose total highest 15-minute demand was
2247-more than 10,000 kilowatts.
2248-"Retail customer" has the meaning set forth in
2249-Section 16-102 of the Public Utilities Act and
2250-multiple retail customer accounts under the same
2251-corporate parent may aggregate their account demands
2252-to meet the 10,000 kilowatt threshold. The criteria
2253-for determining whether this subparagraph is
2254-applicable to a retail customer shall be based on the
2255-12 consecutive billing periods prior to the start of
2256-the year in which the application is filed.
2257-(2) For renewable energy credits to count toward
2258-the self-direct renewable portfolio standard
2259-compliance program, they must:
2260-(i) qualify as renewable energy credits as
2261-defined in Section 1-10 of this Act;
2262-(ii) be sourced from one or more renewable
2263-energy generating facilities that comply with the
2264-geographic requirements as set forth in
2265-subparagraph (I) of paragraph (1) of subsection
2266-(c) as interpreted through the Agency's long-term
2267-renewable resources procurement plan, or, where
2268-applicable, the geographic requirements that
2269-
2270-
2271-governed utility-scale renewable energy credits at
2272-the time the eligible self-direct customer entered
2273-into the applicable renewable energy credit
2274-purchase agreement;
2275-(iii) be procured through long-term contracts
2276-with term lengths of at least 10 years either
2277-directly with the renewable energy generating
2278-facility or through a bundled power purchase
2279-agreement, a virtual power purchase agreement, an
2280-agreement between the renewable generating
2281-facility, an alternative retail electric supplier,
2282-and the customer, or such other structure as is
2283-permissible under this subparagraph (R);
2284-(iv) be equivalent in volume to at least 40%
2285-of the eligible self-direct customer's usage,
2286-determined annually by the eligible self-direct
2287-customer's usage during the previous delivery
2288-year, measured to the nearest megawatt-hour;
2289-(v) be retired by or on behalf of the large
2290-energy customer;
2291-(vi) be sourced from new utility-scale wind
2292-projects or new utility-scale solar projects; and
2293-(vii) if the contracts for renewable energy
2294-credits are entered into after the effective date
2295-of this amendatory Act of the 102nd General
2296-Assembly, the new utility-scale wind projects or
2297-
2298-
2299-new utility-scale solar projects must comply with
2300-the requirements established in subparagraphs (P)
2301-and (Q) of paragraph (1) of this subsection (c)
2302-and subsection (c-10).
2303-(3) The self-direct renewable portfolio standard
2304-compliance program shall be designed to allow eligible
2305-self-direct customers to procure new renewable energy
2306-credits from new utility-scale wind projects or new
2307-utility-scale photovoltaic projects. The Agency shall
2308-annually determine the amount of utility-scale
2309-renewable energy credits it will include each year
2310-from the self-direct renewable portfolio standard
2311-compliance program, subject to receiving qualifying
2312-applications. In making this determination, the Agency
2313-shall evaluate publicly available analyses and studies
2314-of the potential market size for utility-scale
2315-renewable energy long-term purchase agreements by
2316-commercial and industrial energy customers and make
2317-that report publicly available. If demand for
2318-participation in the self-direct renewable portfolio
2319-standard compliance program exceeds availability, the
2320-Agency shall ensure participation is evenly split
2321-between commercial and industrial users to the extent
2322-there is sufficient demand from both customer classes.
2323-Each renewable energy credit procured pursuant to this
2324-subparagraph (R) by a self-direct customer shall
2325-
2326-
2327-reduce the total volume of renewable energy credits
2328-the Agency is otherwise required to procure from new
2329-utility-scale projects pursuant to subparagraph (C) of
2330-paragraph (1) of this subsection (c) on behalf of
2331-contracting utilities where the eligible self-direct
2332-customer is located. The self-direct customer shall
2333-file an annual compliance report with the Agency
2334-pursuant to terms established by the Agency through
2335-its long-term renewable resources procurement plan to
2336-be eligible for participation in this program.
2337-Customers must provide the Agency with their most
2338-recent electricity billing statements or other
2339-information deemed necessary by the Agency to
2340-demonstrate they are an eligible self-direct customer.
2341-(4) The Commission shall approve a reduction in
2342-the volumetric charges collected pursuant to Section
2343-16-108 of the Public Utilities Act for approved
2344-eligible self-direct customers equivalent to the
2345-anticipated cost of renewable energy credit deliveries
2346-under contracts for new utility-scale wind and new
2347-utility-scale solar entered for each delivery year
2348-after the large energy customer begins retiring
2349-eligible new utility scale renewable energy credits
2350-for self-compliance. The self-direct credit amount
2351-shall be determined annually and is equal to the
2352-estimated portion of the cost authorized by
2353-
2354-
2355-subparagraph (E) of paragraph (1) of this subsection
2356-(c) that supported the annual procurement of
2357-utility-scale renewable energy credits in the prior
2358-delivery year using a methodology described in the
2359-long-term renewable resources procurement plan,
2360-expressed on a per kilowatthour basis, and does not
2361-include (i) costs associated with any contracts
2362-entered into before the delivery year in which the
2363-customer files the initial compliance report to be
2364-eligible for participation in the self-direct program,
2365-and (ii) costs associated with procuring renewable
2366-energy credits through existing and future contracts
2367-through the Adjustable Block Program, subsection (c-5)
2368-of this Section 1-75, and the Solar for All Program.
2369-The Agency shall assist the Commission in determining
2370-the current and future costs. The Agency must
2371-determine the self-direct credit amount for new and
2372-existing eligible self-direct customers and submit
2373-this to the Commission in an annual compliance filing.
2374-The Commission must approve the self-direct credit
2375-amount by June 1, 2023 and June 1 of each delivery year
2376-thereafter.
2377-(5) Customers described in this subparagraph (R)
2378-shall apply, on a form developed by the Agency, to the
2379-Agency to be designated as a self-direct eligible
2380-customer. Once the Agency determines that a
2381-
2382-
2383-self-direct customer is eligible for participation in
2384-the program, the self-direct customer will remain
2385-eligible until the end of the term of the contract.
2386-Thereafter, application may be made not less than 12
2387-months before the filing date of the long-term
2388-renewable resources procurement plan described in this
2389-Act. At a minimum, such application shall contain the
2390-following:
2391-(i) the customer's certification that, at the
2392-time of the customer's application, the customer
2393-qualifies to be a self-direct eligible customer,
2394-including documents demonstrating that
2395-qualification;
2396-(ii) the customer's certification that the
2397-customer has entered into or will enter into by
2398-the beginning of the applicable procurement year,
2399-one or more bilateral contracts for new wind
2400-projects or new photovoltaic projects, including
2401-supporting documentation;
2402-(iii) certification that the contract or
2403-contracts for new renewable energy resources are
2404-long-term contracts with term lengths of at least
2405-10 years, including supporting documentation;
2406-(iv) certification of the quantities of
2407-renewable energy credits that the customer will
2408-purchase each year under such contract or
2409-
2410-
2411-contracts, including supporting documentation;
2412-(v) proof that the contract is sufficient to
2413-produce renewable energy credits to be equivalent
2414-in volume to at least 40% of the large energy
2415-customer's usage from the previous delivery year,
2416-measured to the nearest megawatt-hour; and
2417-(vi) certification that the customer intends
2418-to maintain the contract for the duration of the
2419-length of the contract.
2420-(6) If a customer receives the self-direct credit
2421-but fails to properly procure and retire renewable
2422-energy credits as required under this subparagraph
2423-(R), the Commission, on petition from the Agency and
2424-after notice and hearing, may direct such customer's
2425-utility to recover the cost of the wrongfully received
2426-self-direct credits plus interest through an adder to
2427-charges assessed pursuant to Section 16-108 of the
2428-Public Utilities Act. Self-direct customers who
2429-knowingly fail to properly procure and retire
2430-renewable energy credits and do not notify the Agency
2431-are ineligible for continued participation in the
2432-self-direct renewable portfolio standard compliance
2433-program.
2434-(2) (Blank).
2435-(3) (Blank).
2436-(4) The electric utility shall retire all renewable
2437-
2438-
2439-energy credits used to comply with the standard.
2440-(5) Beginning with the 2010 delivery year and ending
2441-June 1, 2017, an electric utility subject to this
2442-subsection (c) shall apply the lesser of the maximum
2443-alternative compliance payment rate or the most recent
2444-estimated alternative compliance payment rate for its
2445-service territory for the corresponding compliance period,
2446-established pursuant to subsection (d) of Section 16-115D
2447-of the Public Utilities Act to its retail customers that
2448-take service pursuant to the electric utility's hourly
2449-pricing tariff or tariffs. The electric utility shall
2450-retain all amounts collected as a result of the
2451-application of the alternative compliance payment rate or
2452-rates to such customers, and, beginning in 2011, the
2453-utility shall include in the information provided under
2454-item (1) of subsection (d) of Section 16-111.5 of the
2455-Public Utilities Act the amounts collected under the
2456-alternative compliance payment rate or rates for the prior
2457-year ending May 31. Notwithstanding any limitation on the
2458-procurement of renewable energy resources imposed by item
2459-(2) of this subsection (c), the Agency shall increase its
2460-spending on the purchase of renewable energy resources to
2461-be procured by the electric utility for the next plan year
2462-by an amount equal to the amounts collected by the utility
2463-under the alternative compliance payment rate or rates in
2464-the prior year ending May 31.
2465-
2466-
2467-(6) The electric utility shall be entitled to recover
2468-all of its costs associated with the procurement of
2469-renewable energy credits under plans approved under this
2470-Section and Section 16-111.5 of the Public Utilities Act.
2471-These costs shall include associated reasonable expenses
2472-for implementing the procurement programs, including, but
2473-not limited to, the costs of administering and evaluating
2474-the Adjustable Block program, through an automatic
2475-adjustment clause tariff in accordance with subsection (k)
2476-of Section 16-108 of the Public Utilities Act.
2477-(7) Renewable energy credits procured from new
2478-photovoltaic projects or new distributed renewable energy
2479-generation devices under this Section after June 1, 2017
2480-(the effective date of Public Act 99-906) must be procured
2481-from devices installed by a qualified person in compliance
2482-with the requirements of Section 16-128A of the Public
2483-Utilities Act and any rules or regulations adopted
2484-thereunder.
2485-In meeting the renewable energy requirements of this
2486-subsection (c), to the extent feasible and consistent with
2487-State and federal law, the renewable energy credit
2488-procurements, Adjustable Block solar program, and
2489-community renewable generation program shall provide
2490-employment opportunities for all segments of the
2491-population and workforce, including minority-owned and
2492-female-owned business enterprises, and shall not,
2493-
2494-
2495-consistent with State and federal law, discriminate based
2496-on race or socioeconomic status.
2497-(c-5) Procurement of renewable energy credits from new
2498-renewable energy facilities installed at or adjacent to the
2499-sites of electric generating facilities that burn or burned
2500-coal as their primary fuel source.
2501-(1) In addition to the procurement of renewable energy
2502-credits pursuant to long-term renewable resources
2503-procurement plans in accordance with subsection (c) of
2504-this Section and Section 16-111.5 of the Public Utilities
2505-Act, the Agency shall conduct procurement events in
2506-accordance with this subsection (c-5) for the procurement
2507-by electric utilities that served more than 300,000 retail
2508-customers in this State as of January 1, 2019 of renewable
2509-energy credits from new renewable energy facilities to be
2510-installed at or adjacent to the sites of electric
2511-generating facilities that, as of January 1, 2016, burned
2512-coal as their primary fuel source and meet the other
2513-criteria specified in this subsection (c-5). For purposes
2514-of this subsection (c-5), "new renewable energy facility"
2515-means a new utility-scale solar project as defined in this
2516-Section 1-75. The renewable energy credits procured
2517-pursuant to this subsection (c-5) may be included or
2518-counted for purposes of compliance with the amounts of
2519-renewable energy credits required to be procured pursuant
2520-to subsection (c) of this Section to the extent that there
2521-
2522-
2523-are otherwise shortfalls in compliance with such
2524-requirements. The procurement of renewable energy credits
2525-by electric utilities pursuant to this subsection (c-5)
2526-shall be funded solely by revenues collected from the Coal
2527-to Solar and Energy Storage Initiative Charge provided for
2528-in this subsection (c-5) and subsection (i-5) of Section
2529-16-108 of the Public Utilities Act, shall not be funded by
2530-revenues collected through any of the other funding
2531-mechanisms provided for in subsection (c) of this Section,
2532-and shall not be subject to the limitation imposed by
2533-subsection (c) on charges to retail customers for costs to
2534-procure renewable energy resources pursuant to subsection
2535-(c), and shall not be subject to any other requirements or
2536-limitations of subsection (c).
2537-(2) The Agency shall conduct 2 procurement events to
2538-select owners of electric generating facilities meeting
2539-the eligibility criteria specified in this subsection
2540-(c-5) to enter into long-term contracts to sell renewable
2541-energy credits to electric utilities serving more than
2542-300,000 retail customers in this State as of January 1,
2543-2019. The first procurement event shall be conducted no
2544-later than March 31, 2022, unless the Agency elects to
2545-delay it, until no later than May 1, 2022, due to its
2546-overall volume of work, and shall be to select owners of
2547-electric generating facilities located in this State and
2548-south of federal Interstate Highway 80 that meet the
2549-
2550-
2551-eligibility criteria specified in this subsection (c-5).
2552-The second procurement event shall be conducted no sooner
2553-than September 30, 2022 and no later than October 31, 2022
2554-and shall be to select owners of electric generating
2555-facilities located anywhere in this State that meet the
2556-eligibility criteria specified in this subsection (c-5).
2557-The Agency shall establish and announce a time period,
2558-which shall begin no later than 30 days prior to the
2559-scheduled date for the procurement event, during which
2560-applicants may submit applications to be selected as
2561-suppliers of renewable energy credits pursuant to this
2562-subsection (c-5). The eligibility criteria for selection
2563-as a supplier of renewable energy credits pursuant to this
2564-subsection (c-5) shall be as follows:
2565-(A) The applicant owns an electric generating
2566-facility located in this State that: (i) as of January
2567-1, 2016, burned coal as its primary fuel to generate
2568-electricity; and (ii) has, or had prior to retirement,
2569-an electric generating capacity of at least 150
2570-megawatts. The electric generating facility can be
2571-either: (i) retired as of the date of the procurement
2572-event; or (ii) still operating as of the date of the
2573-procurement event.
2574-(B) The applicant is not (i) an electric
2575-cooperative as defined in Section 3-119 of the Public
2576-Utilities Act, or (ii) an entity described in
2577-
2578-
2579-subsection (b)(1) of Section 3-105 of the Public
2580-Utilities Act, or an association or consortium of or
2581-an entity owned by entities described in (i) or (ii);
2582-and the coal-fueled electric generating facility was
2583-at one time owned, in whole or in part, by a public
2584-utility as defined in Section 3-105 of the Public
2585-Utilities Act.
2586-(C) If participating in the first procurement
2587-event, the applicant proposes and commits to construct
2588-and operate, at the site, and if necessary for
2589-sufficient space on property adjacent to the existing
2590-property, at which the electric generating facility
2591-identified in paragraph (A) is located: (i) a new
2592-renewable energy facility of at least 20 megawatts but
2593-no more than 100 megawatts of electric generating
2594-capacity, and (ii) an energy storage facility having a
2595-storage capacity equal to at least 2 megawatts and at
2596-most 10 megawatts. If participating in the second
2597-procurement event, the applicant proposes and commits
2598-to construct and operate, at the site, and if
2599-necessary for sufficient space on property adjacent to
2600-the existing property, at which the electric
2601-generating facility identified in paragraph (A) is
2602-located: (i) a new renewable energy facility of at
2603-least 5 megawatts but no more than 20 megawatts of
2604-electric generating capacity, and (ii) an energy
2605-
2606-
2607-storage facility having a storage capacity equal to at
2608-least 0.5 megawatts and at most one megawatt.
2609-(D) The applicant agrees that the new renewable
2610-energy facility and the energy storage facility will
2611-be constructed or installed by a qualified entity or
2612-entities in compliance with the requirements of
2613-subsection (g) of Section 16-128A of the Public
2614-Utilities Act and any rules adopted thereunder.
2615-(E) The applicant agrees that personnel operating
2616-the new renewable energy facility and the energy
2617-storage facility will have the requisite skills,
2618-knowledge, training, experience, and competence, which
2619-may be demonstrated by completion or current
2620-participation and ultimate completion by employees of
2621-an accredited or otherwise recognized apprenticeship
2622-program for the employee's particular craft, trade, or
2623-skill, including through training and education
2624-courses and opportunities offered by the owner to
2625-employees of the coal-fueled electric generating
2626-facility or by previous employment experience
2627-performing the employee's particular work skill or
2628-function.
2629-(F) The applicant commits that not less than the
2630-prevailing wage, as determined pursuant to the
2631-Prevailing Wage Act, will be paid to the applicant's
2632-employees engaged in construction activities
2633-
2634-
2635-associated with the new renewable energy facility and
2636-the new energy storage facility and to the employees
2637-of applicant's contractors engaged in construction
2638-activities associated with the new renewable energy
2639-facility and the new energy storage facility, and
2640-that, on or before the commercial operation date of
2641-the new renewable energy facility, the applicant shall
2642-file a report with the Agency certifying that the
2643-requirements of this subparagraph (F) have been met.
2644-(G) The applicant commits that if selected, it
2645-will negotiate a project labor agreement for the
2646-construction of the new renewable energy facility and
2647-associated energy storage facility that includes
2648-provisions requiring the parties to the agreement to
2649-work together to establish diversity threshold
2650-requirements and to ensure best efforts to meet
2651-diversity targets, improve diversity at the applicable
2652-job site, create diverse apprenticeship opportunities,
2653-and create opportunities to employ former coal-fired
2654-power plant workers.
2655-(H) The applicant commits to enter into a contract
2656-or contracts for the applicable duration to provide
2657-specified numbers of renewable energy credits each
2658-year from the new renewable energy facility to
2659-electric utilities that served more than 300,000
2660-retail customers in this State as of January 1, 2019,
2661-
2662-
2663-at a price of $30 per renewable energy credit. The
2664-price per renewable energy credit shall be fixed at
2665-$30 for the applicable duration and the renewable
2666-energy credits shall not be indexed renewable energy
2667-credits as provided for in item (v) of subparagraph
2668-(G) of paragraph (1) of subsection (c) of Section 1-75
2669-of this Act. The applicable duration of each contract
2670-shall be 20 years, unless the applicant is physically
2671-interconnected to the PJM Interconnection, LLC
2672-transmission grid and had a generating capacity of at
2673-least 1,200 megawatts as of January 1, 2021, in which
2674-case the applicable duration of the contract shall be
2675-15 years.
2676-(I) The applicant's application is certified by an
2677-officer of the applicant and by an officer of the
2678-applicant's ultimate parent company, if any.
2679-(3) An applicant may submit applications to contract
2680-to supply renewable energy credits from more than one new
2681-renewable energy facility to be constructed at or adjacent
2682-to one or more qualifying electric generating facilities
2683-owned by the applicant. The Agency may select new
2684-renewable energy facilities to be located at or adjacent
2685-to the sites of more than one qualifying electric
2686-generation facility owned by an applicant to contract with
2687-electric utilities to supply renewable energy credits from
2688-such facilities.
2689-
2690-
2691-(4) The Agency shall assess fees to each applicant to
2692-recover the Agency's costs incurred in receiving and
2693-evaluating applications, conducting the procurement event,
2694-developing contracts for sale, delivery and purchase of
2695-renewable energy credits, and monitoring the
2696-administration of such contracts, as provided for in this
2697-subsection (c-5), including fees paid to a procurement
2698-administrator retained by the Agency for one or more of
2699-these purposes.
2700-(5) The Agency shall select the applicants and the new
2701-renewable energy facilities to contract with electric
2702-utilities to supply renewable energy credits in accordance
2703-with this subsection (c-5). In the first procurement
2704-event, the Agency shall select applicants and new
2705-renewable energy facilities to supply renewable energy
2706-credits, at a price of $30 per renewable energy credit,
2707-aggregating to no less than 400,000 renewable energy
2708-credits per year for the applicable duration, assuming
2709-sufficient qualifying applications to supply, in the
2710-aggregate, at least that amount of renewable energy
2711-credits per year; and not more than 580,000 renewable
2712-energy credits per year for the applicable duration. In
2713-the second procurement event, the Agency shall select
2714-applicants and new renewable energy facilities to supply
2715-renewable energy credits, at a price of $30 per renewable
2716-energy credit, aggregating to no more than 625,000
2717-
2718-
2719-renewable energy credits per year less the amount of
2720-renewable energy credits each year contracted for as a
2721-result of the first procurement event, for the applicable
2722-durations. The number of renewable energy credits to be
2723-procured as specified in this paragraph (5) shall not be
2724-reduced based on renewable energy credits procured in the
2725-self-direct renewable energy credit compliance program
2726-established pursuant to subparagraph (R) of paragraph (1)
2727-of subsection (c) of Section 1-75.
2728-(6) The obligation to purchase renewable energy
2729-credits from the applicants and their new renewable energy
2730-facilities selected by the Agency shall be allocated to
2731-the electric utilities based on their respective
2732-percentages of kilowatthours delivered to delivery
2733-services customers to the aggregate kilowatthour
2734-deliveries by the electric utilities to delivery services
2735-customers for the year ended December 31, 2021. In order
2736-to achieve these allocation percentages between or among
2737-the electric utilities, the Agency shall require each
2738-applicant that is selected in the procurement event to
2739-enter into a contract with each electric utility for the
2740-sale and purchase of renewable energy credits from each
2741-new renewable energy facility to be constructed and
2742-operated by the applicant, with the sale and purchase
2743-obligations under the contracts to aggregate to the total
2744-number of renewable energy credits per year to be supplied
2745-
2746-
2747-by the applicant from the new renewable energy facility.
2748-(7) The Agency shall submit its proposed selection of
2749-applicants, new renewable energy facilities to be
2750-constructed, and renewable energy credit amounts for each
2751-procurement event to the Commission for approval. The
2752-Commission shall, within 2 business days after receipt of
2753-the Agency's proposed selections, approve the proposed
2754-selections if it determines that the applicants and the
2755-new renewable energy facilities to be constructed meet the
2756-selection criteria set forth in this subsection (c-5) and
2757-that the Agency seeks approval for contracts of applicable
2758-durations aggregating to no more than the maximum amount
2759-of renewable energy credits per year authorized by this
2760-subsection (c-5) for the procurement event, at a price of
2761-$30 per renewable energy credit.
2762-(8) The Agency, in conjunction with its procurement
2763-administrator if one is retained, the electric utilities,
2764-and potential applicants for contracts to produce and
2765-supply renewable energy credits pursuant to this
2766-subsection (c-5), shall develop a standard form contract
2767-for the sale, delivery and purchase of renewable energy
2768-credits pursuant to this subsection (c-5). Each contract
2769-resulting from the first procurement event shall allow for
2770-a commercial operation date for the new renewable energy
2771-facility of either June 1, 2023 or June 1, 2024, with such
2772-dates subject to adjustment as provided in this paragraph.
2773-
2774-
2775-Each contract resulting from the second procurement event
2776-shall provide for a commercial operation date on June 1
2777-next occurring up to 48 months after execution of the
2778-contract. Each contract shall provide that the owner shall
2779-receive payments for renewable energy credits for the
2780-applicable durations beginning with the commercial
2781-operation date of the new renewable energy facility. The
2782-form contract shall provide for adjustments to the
2783-commercial operation and payment start dates as needed due
2784-to any delays in completing the procurement and
2785-contracting processes, in finalizing interconnection
2786-agreements and installing interconnection facilities, and
2787-in obtaining other necessary governmental permits and
2788-approvals. The form contract shall be, to the maximum
2789-extent possible, consistent with standard electric
2790-industry contracts for sale, delivery, and purchase of
2791-renewable energy credits while taking into account the
2792-specific requirements of this subsection (c-5). The form
2793-contract shall provide for over-delivery and
2794-under-delivery of renewable energy credits within
2795-reasonable ranges during each 12-month period and penalty,
2796-default, and enforcement provisions for failure of the
2797-selling party to deliver renewable energy credits as
2798-specified in the contract and to comply with the
2799-requirements of this subsection (c-5). The standard form
2800-contract shall specify that all renewable energy credits
2801-
2802-
2803-delivered to the electric utility pursuant to the contract
2804-shall be retired. The Agency shall make the proposed
2805-contracts available for a reasonable period for comment by
2806-potential applicants, and shall publish the final form
2807-contract at least 30 days before the date of the first
2808-procurement event.
2809-(9) Coal to Solar and Energy Storage Initiative
2810-Charge.
2811-(A) By no later than July 1, 2022, each electric
2812-utility that served more than 300,000 retail customers
2813-in this State as of January 1, 2019 shall file a tariff
2814-with the Commission for the billing and collection of
2815-a Coal to Solar and Energy Storage Initiative Charge
2816-in accordance with subsection (i-5) of Section 16-108
2817-of the Public Utilities Act, with such tariff to be
2818-effective, following review and approval or
2819-modification by the Commission, beginning January 1,
2820-2023. The tariff shall provide for the calculation and
2821-setting of the electric utility's Coal to Solar and
2822-Energy Storage Initiative Charge to collect revenues
2823-estimated to be sufficient, in the aggregate, (i) to
2824-enable the electric utility to pay for the renewable
2825-energy credits it has contracted to purchase in the
2826-delivery year beginning June 1, 2023 and each delivery
2827-year thereafter from new renewable energy facilities
2828-located at the sites of qualifying electric generating
2829-
2830-
2831-facilities, and (ii) to fund the grant payments to be
2832-made in each delivery year by the Department of
2833-Commerce and Economic Opportunity, or any successor
2834-department or agency, which shall be referred to in
2835-this subsection (c-5) as the Department, pursuant to
2836-paragraph (10) of this subsection (c-5). The electric
2837-utility's tariff shall provide for the billing and
2838-collection of the Coal to Solar and Energy Storage
2839-Initiative Charge on each kilowatthour of electricity
2840-delivered to its delivery services customers within
2841-its service territory and shall provide for an annual
2842-reconciliation of revenues collected with actual
2843-costs, in accordance with subsection (i-5) of Section
2844-16-108 of the Public Utilities Act.
2845-(B) Each electric utility shall remit on a monthly
2846-basis to the State Treasurer, for deposit in the Coal
2847-to Solar and Energy Storage Initiative Fund provided
2848-for in this subsection (c-5), the electric utility's
2849-collections of the Coal to Solar and Energy Storage
2850-Initiative Charge in the amount estimated to be needed
2851-by the Department for grant payments pursuant to grant
2852-contracts entered into by the Department pursuant to
2853-paragraph (10) of this subsection (c-5).
2854-(10) Coal to Solar and Energy Storage Initiative Fund.
2855-(A) The Coal to Solar and Energy Storage
2856-Initiative Fund is established as a special fund in
2857-
2858-
2859-the State treasury. The Coal to Solar and Energy
2860-Storage Initiative Fund is authorized to receive, by
2861-statutory deposit, that portion specified in item (B)
2862-of paragraph (9) of this subsection (c-5) of moneys
2863-collected by electric utilities through imposition of
2864-the Coal to Solar and Energy Storage Initiative Charge
2865-required by this subsection (c-5). The Coal to Solar
2866-and Energy Storage Initiative Fund shall be
2867-administered by the Department to provide grants to
2868-support the installation and operation of energy
2869-storage facilities at the sites of qualifying electric
2870-generating facilities meeting the criteria specified
2871-in this paragraph (10).
2872-(B) The Coal to Solar and Energy Storage
2873-Initiative Fund shall not be subject to sweeps,
2874-administrative charges, or chargebacks, including, but
2875-not limited to, those authorized under Section 8h of
2876-the State Finance Act, that would in any way result in
2877-the transfer of those funds from the Coal to Solar and
2878-Energy Storage Initiative Fund to any other fund of
2879-this State or in having any such funds utilized for any
2880-purpose other than the express purposes set forth in
2881-this paragraph (10).
2882-(C) The Department shall utilize up to
2883-$280,500,000 in the Coal to Solar and Energy Storage
2884-Initiative Fund for grants, assuming sufficient
2885-
2886-
2887-qualifying applicants, to support installation of
2888-energy storage facilities at the sites of up to 3
2889-qualifying electric generating facilities located in
2890-the Midcontinent Independent System Operator, Inc.,
2891-region in Illinois and the sites of up to 2 qualifying
2892-electric generating facilities located in the PJM
2893-Interconnection, LLC region in Illinois that meet the
2894-criteria set forth in this subparagraph (C). The
2895-criteria for receipt of a grant pursuant to this
2896-subparagraph (C) are as follows:
2897-(1) the electric generating facility at the
2898-site has, or had prior to retirement, an electric
2899-generating capacity of at least 150 megawatts;
2900-(2) the electric generating facility burns (or
2901-burned prior to retirement) coal as its primary
2902-source of fuel;
2903-(3) if the electric generating facility is
2904-retired, it was retired subsequent to January 1,
2905-2016;
2906-(4) the owner of the electric generating
2907-facility has not been selected by the Agency
2908-pursuant to this subsection (c-5) of this Section
2909-to enter into a contract to sell renewable energy
2910-credits to one or more electric utilities from a
2911-new renewable energy facility located or to be
2912-located at or adjacent to the site at which the
2913-
2914-
2915-electric generating facility is located;
2916-(5) the electric generating facility located
2917-at the site was at one time owned, in whole or in
2918-part, by a public utility as defined in Section
2919-3-105 of the Public Utilities Act;
2920-(6) the electric generating facility at the
2921-site is not owned by (i) an electric cooperative
2922-as defined in Section 3-119 of the Public
2923-Utilities Act, or (ii) an entity described in
2924-subsection (b)(1) of Section 3-105 of the Public
2925-Utilities Act, or an association or consortium of
2926-or an entity owned by entities described in items
2927-(i) or (ii);
2928-(7) the proposed energy storage facility at
2929-the site will have energy storage capacity of at
2930-least 37 megawatts;
2931-(8) the owner commits to place the energy
2932-storage facility into commercial operation on
2933-either June 1, 2023, June 1, 2024, or June 1, 2025,
2934-with such date subject to adjustment as needed due
2935-to any delays in completing the grant contracting
2936-process, in finalizing interconnection agreements
2937-and in installing interconnection facilities, and
2938-in obtaining necessary governmental permits and
2939-approvals;
2940-(9) the owner agrees that the new energy
2941-
2942-
2943-storage facility will be constructed or installed
2944-by a qualified entity or entities consistent with
2945-the requirements of subsection (g) of Section
2946-16-128A of the Public Utilities Act and any rules
2947-adopted under that Section;
2948-(10) the owner agrees that personnel operating
2949-the energy storage facility will have the
2950-requisite skills, knowledge, training, experience,
2951-and competence, which may be demonstrated by
2952-completion or current participation and ultimate
2953-completion by employees of an accredited or
2954-otherwise recognized apprenticeship program for
2955-the employee's particular craft, trade, or skill,
2956-including through training and education courses
2957-and opportunities offered by the owner to
2958-employees of the coal-fueled electric generating
2959-facility or by previous employment experience
2960-performing the employee's particular work skill or
2961-function;
2962-(11) the owner commits that not less than the
2963-prevailing wage, as determined pursuant to the
2964-Prevailing Wage Act, will be paid to the owner's
2965-employees engaged in construction activities
2966-associated with the new energy storage facility
2967-and to the employees of the owner's contractors
2968-engaged in construction activities associated with
2969-
2970-
2971-the new energy storage facility, and that, on or
2972-before the commercial operation date of the new
2973-energy storage facility, the owner shall file a
2974-report with the Department certifying that the
2975-requirements of this subparagraph (11) have been
2976-met; and
2977-(12) the owner commits that if selected to
2978-receive a grant, it will negotiate a project labor
2979-agreement for the construction of the new energy
2980-storage facility that includes provisions
2981-requiring the parties to the agreement to work
2982-together to establish diversity threshold
2983-requirements and to ensure best efforts to meet
2984-diversity targets, improve diversity at the
2985-applicable job site, create diverse apprenticeship
2986-opportunities, and create opportunities to employ
2987-former coal-fired power plant workers.
2988-The Department shall accept applications for this
2989-grant program until March 31, 2022 and shall announce
2990-the award of grants no later than June 1, 2022. The
2991-Department shall make the grant payments to a
2992-recipient in equal annual amounts for 10 years
2993-following the date the energy storage facility is
2994-placed into commercial operation. The annual grant
2995-payments to a qualifying energy storage facility shall
2996-be $110,000 per megawatt of energy storage capacity,
2997-
2998-
2999-with total annual grant payments pursuant to this
3000-subparagraph (C) for qualifying energy storage
3001-facilities not to exceed $28,050,000 in any year.
3002-(D) Grants of funding for energy storage
3003-facilities pursuant to subparagraph (C) of this
3004-paragraph (10), from the Coal to Solar and Energy
3005-Storage Initiative Fund, shall be memorialized in
3006-grant contracts between the Department and the
3007-recipient. The grant contracts shall specify the date
3008-or dates in each year on which the annual grant
3009-payments shall be paid.
3010-(E) All disbursements from the Coal to Solar and
3011-Energy Storage Initiative Fund shall be made only upon
3012-warrants of the Comptroller drawn upon the Treasurer
3013-as custodian of the Fund upon vouchers signed by the
3014-Director of the Department or by the person or persons
3015-designated by the Director of the Department for that
3016-purpose. The Comptroller is authorized to draw the
3017-warrants upon vouchers so signed. The Treasurer shall
3018-accept all written warrants so signed and shall be
3019-released from liability for all payments made on those
3020-warrants.
3021-(11) Diversity, equity, and inclusion plans.
3022-(A) Each applicant selected in a procurement event
3023-to contract to supply renewable energy credits in
3024-accordance with this subsection (c-5) and each owner
3025-
3026-
3027-selected by the Department to receive a grant or
3028-grants to support the construction and operation of a
3029-new energy storage facility or facilities in
3030-accordance with this subsection (c-5) shall, within 60
3031-days following the Commission's approval of the
3032-applicant to contract to supply renewable energy
3033-credits or within 60 days following execution of a
3034-grant contract with the Department, as applicable,
3035-submit to the Commission a diversity, equity, and
3036-inclusion plan setting forth the applicant's or
3037-owner's numeric goals for the diversity composition of
3038-its supplier entities for the new renewable energy
3039-facility or new energy storage facility, as
3040-applicable, which shall be referred to for purposes of
3041-this paragraph (11) as the project, and the
3042-applicant's or owner's action plan and schedule for
3043-achieving those goals.
3044-(B) For purposes of this paragraph (11), diversity
3045-composition shall be based on the percentage, which
3046-shall be a minimum of 25%, of eligible expenditures
3047-for contract awards for materials and services (which
3048-shall be defined in the plan) to business enterprises
3049-owned by minority persons, women, or persons with
3050-disabilities as defined in Section 2 of the Business
3051-Enterprise for Minorities, Women, and Persons with
3052-Disabilities Act, to LGBTQ business enterprises, to
3053-
3054-
3055-veteran-owned business enterprises, and to business
3056-enterprises located in environmental justice
3057-communities. The diversity composition goals of the
3058-plan may include eligible expenditures in areas for
3059-vendor or supplier opportunities in addition to
3060-development and construction of the project, and may
3061-exclude from eligible expenditures materials and
3062-services with limited market availability, limited
3063-production and availability from suppliers in the
3064-United States, such as solar panels and storage
3065-batteries, and material and services that are subject
3066-to critical energy infrastructure or cybersecurity
3067-requirements or restrictions. The plan may provide
3068-that the diversity composition goals may be met
3069-through Tier 1 Direct or Tier 2 subcontracting
3070-expenditures or a combination thereof for the project.
3071-(C) The plan shall provide for, but not be limited
3072-to: (i) internal initiatives, including multi-tier
3073-initiatives, by the applicant or owner, or by its
3074-engineering, procurement and construction contractor
3075-if one is used for the project, which for purposes of
3076-this paragraph (11) shall be referred to as the EPC
3077-contractor, to enable diverse businesses to be
3078-considered fairly for selection to provide materials
3079-and services; (ii) requirements for the applicant or
3080-owner or its EPC contractor to proactively solicit and
3081-
3082-
3083-utilize diverse businesses to provide materials and
3084-services; and (iii) requirements for the applicant or
3085-owner or its EPC contractor to hire a diverse
3086-workforce for the project. The plan shall include a
3087-description of the applicant's or owner's diversity
3088-recruiting efforts both for the project and for other
3089-areas of the applicant's or owner's business
3090-operations. The plan shall provide for the imposition
3091-of financial penalties on the applicant's or owner's
3092-EPC contractor for failure to exercise best efforts to
3093-comply with and execute the EPC contractor's diversity
3094-obligations under the plan. The plan may provide for
3095-the applicant or owner to set aside a portion of the
3096-work on the project to serve as an incubation program
3097-for qualified businesses, as specified in the plan,
3098-owned by minority persons, women, persons with
3099-disabilities, LGBTQ persons, and veterans, and
3100-businesses located in environmental justice
3101-communities, seeking to enter the renewable energy
3102-industry.
3103-(D) The applicant or owner may submit a revised or
3104-updated plan to the Commission from time to time as
3105-circumstances warrant. The applicant or owner shall
3106-file annual reports with the Commission detailing the
3107-applicant's or owner's progress in implementing its
3108-plan and achieving its goals and any modifications the
3109-
3110-
3111-applicant or owner has made to its plan to better
3112-achieve its diversity, equity and inclusion goals. The
3113-applicant or owner shall file a final report on the
3114-fifth June 1 following the commercial operation date
3115-of the new renewable energy resource or new energy
3116-storage facility, but the applicant or owner shall
3117-thereafter continue to be subject to applicable
3118-reporting requirements of Section 5-117 of the Public
3119-Utilities Act.
3120-(c-10) Equity accountability system. It is the purpose of
3121-this subsection (c-10) to create an equity accountability
3122-system, which includes the minimum equity standards for all
3123-renewable energy procurements, the equity category of the
3124-Adjustable Block Program, and the equity prioritization for
3125-noncompetitive procurements, that is successful in advancing
3126-priority access to the clean energy economy for businesses and
3127-workers from communities that have been excluded from economic
3128-opportunities in the energy sector, have been subject to
3129-disproportionate levels of pollution, and have
3130-disproportionately experienced negative public health
3131-outcomes. Further, it is the purpose of this subsection to
3132-ensure that this equity accountability system is successful in
3133-advancing equity across Illinois by providing access to the
3134-clean energy economy for businesses and workers from
3135-communities that have been historically excluded from economic
3136-opportunities in the energy sector, have been subject to
3137-
3138-
3139-disproportionate levels of pollution, and have
3140-disproportionately experienced negative public health
3141-outcomes.
3142-(1) Minimum equity standards. The Agency shall create
3143-programs with the purpose of increasing access to and
3144-development of equity eligible contractors, who are prime
3145-contractors and subcontractors, across all of the programs
3146-it manages. All applications for renewable energy credit
3147-procurements shall comply with specific minimum equity
3148-commitments. Starting in the delivery year immediately
3149-following the next long-term renewable resources
3150-procurement plan, at least 10% of the project workforce
3151-for each entity participating in a procurement program
3152-outlined in this subsection (c-10) must be done by equity
3153-eligible persons or equity eligible contractors. The
3154-Agency shall increase the minimum percentage each delivery
3155-year thereafter by increments that ensure a statewide
3156-average of 30% of the project workforce for each entity
3157-participating in a procurement program is done by equity
3158-eligible persons or equity eligible contractors by 2030.
3159-The Agency shall propose a schedule of percentage
3160-increases to the minimum equity standards in its draft
3161-revised renewable energy resources procurement plan
3162-submitted to the Commission for approval pursuant to
3163-paragraph (5) of subsection (b) of Section 16-111.5 of the
3164-Public Utilities Act. In determining these annual
3165-
3166-
3167-increases, the Agency shall have the discretion to
3168-establish different minimum equity standards for different
3169-types of procurements and different regions of the State
3170-if the Agency finds that doing so will further the
3171-purposes of this subsection (c-10). The proposed schedule
3172-of annual increases shall be revisited and updated on an
3173-annual basis. Revisions shall be developed with
3174-stakeholder input, including from equity eligible persons,
3175-equity eligible contractors, clean energy industry
3176-representatives, and community-based organizations that
3177-work with such persons and contractors.
3178-(A) At the start of each delivery year, the Agency
3179-shall require a compliance plan from each entity
3180-participating in a procurement program of subsection
3181-(c) of this Section that demonstrates how they will
3182-achieve compliance with the minimum equity standard
3183-percentage for work completed in that delivery year.
3184-If an entity applies for its approved vendor or
3185-designee status between delivery years, the Agency
3186-shall require a compliance plan at the time of
3187-application.
3188-(B) Halfway through each delivery year, the Agency
3189-shall require each entity participating in a
3190-procurement program to confirm that it will achieve
3191-compliance in that delivery year, when applicable. The
3192-Agency may offer corrective action plans to entities
3193-
3194-
3195-that are not on track to achieve compliance.
3196-(C) At the end of each delivery year, each entity
3197-participating and completing work in that delivery
3198-year in a procurement program of subsection (c) shall
3199-submit a report to the Agency that demonstrates how it
3200-achieved compliance with the minimum equity standards
3201-percentage for that delivery year.
3202-(D) The Agency shall prohibit participation in
3203-procurement programs by an approved vendor or
3204-designee, as applicable, or entities with which an
3205-approved vendor or designee, as applicable, shares a
3206-common parent company if an approved vendor or
3207-designee, as applicable, failed to meet the minimum
3208-equity standards for the prior delivery year. Waivers
3209-approved for lack of equity eligible persons or equity
3210-eligible contractors in a geographic area of a project
3211-shall not count against the approved vendor or
3212-designee. The Agency shall offer a corrective action
3213-plan for any such entities to assist them in obtaining
3214-compliance and shall allow continued access to
3215-procurement programs upon an approved vendor or
3216-designee demonstrating compliance.
3217-(E) The Agency shall pursue efficiencies achieved
3218-by combining with other approved vendor or designee
3219-reporting.
3220-(2) Equity accountability system within the Adjustable
3221-
3222-
3223-Block program. The equity category described in item (vi)
3224-of subparagraph (K) of subsection (c) is only available to
3225-applicants that are equity eligible contractors.
3226-(3) Equity accountability system within competitive
3227-procurements. Through its long-term renewable resources
3228-procurement plan, the Agency shall develop requirements
3229-for ensuring that competitive procurement processes,
3230-including utility-scale solar, utility-scale wind, and
3231-brownfield site photovoltaic projects, advance the equity
3232-goals of this subsection (c-10). Subject to Commission
3233-approval, the Agency shall develop bid application
3234-requirements and a bid evaluation methodology for ensuring
3235-that utilization of equity eligible contractors, whether
3236-as bidders or as participants on project development, is
3237-optimized, including requiring that winning or successful
3238-applicants for utility-scale projects are or will partner
3239-with equity eligible contractors and giving preference to
3240-bids through which a higher portion of contract value
3241-flows to equity eligible contractors. To the extent
3242-practicable, entities participating in competitive
3243-procurements shall also be required to meet all the equity
3244-accountability requirements for approved vendors and their
3245-designees under this subsection (c-10). In developing
3246-these requirements, the Agency shall also consider whether
3247-equity goals can be further advanced through additional
3248-measures.
3249-
3250-
3251-(4) In the first revision to the long-term renewable
3252-energy resources procurement plan and each revision
3253-thereafter, the Agency shall include the following:
3254-(A) The current status and number of equity
3255-eligible contractors listed in the Energy Workforce
3256-Equity Database designed in subsection (c-25),
3257-including the number of equity eligible contractors
3258-with current certifications as issued by the Agency.
3259-(B) A mechanism for measuring, tracking, and
3260-reporting project workforce at the approved vendor or
3261-designee level, as applicable, which shall include a
3262-measurement methodology and records to be made
3263-available for audit by the Agency or the Program
3264-Administrator.
3265-(C) A program for approved vendors, designees,
3266-eligible persons, and equity eligible contractors to
3267-receive trainings, guidance, and other support from
3268-the Agency or its designee regarding the equity
3269-category outlined in item (vi) of subparagraph (K) of
3270-paragraph (1) of subsection (c) and in meeting the
3271-minimum equity standards of this subsection (c-10).
3272-(D) A process for certifying equity eligible
3273-contractors and equity eligible persons. The
3274-certification process shall coordinate with the Energy
3275-Workforce Equity Database set forth in subsection
3276-(c-25).
3277-
3278-
3279-(E) An application for waiver of the minimum
3280-equity standards of this subsection, which the Agency
3281-shall have the discretion to grant in rare
3282-circumstances. The Agency may grant such a waiver
3283-where the applicant provides evidence of significant
3284-efforts toward meeting the minimum equity commitment,
3285-including: use of the Energy Workforce Equity
3286-Database; efforts to hire or contract with entities
3287-that hire eligible persons; and efforts to establish
3288-contracting relationships with eligible contractors.
3289-The Agency shall support applicants in understanding
3290-the Energy Workforce Equity Database and other
3291-resources for pursuing compliance of the minimum
3292-equity standards. Waivers shall be project-specific,
3293-unless the Agency deems it necessary to grant a waiver
3294-across a portfolio of projects, and in effect for no
3295-longer than one year. Any waiver extension or
3296-subsequent waiver request from an applicant shall be
3297-subject to the requirements of this Section and shall
3298-specify efforts made to reach compliance. When
3299-considering whether to grant a waiver, and to what
3300-extent, the Agency shall consider the degree to which
3301-similarly situated applicants have been able to meet
3302-these minimum equity commitments. For repeated waiver
3303-requests for specific lack of eligible persons or
3304-eligible contractors available, the Agency shall make
3305-
3306-
3307-recommendations to target recruitment to add such
3308-eligible persons or eligible contractors to the
3309-database.
3310-(5) The Agency shall collect information about work on
3311-projects or portfolios of projects subject to these
3312-minimum equity standards to ensure compliance with this
3313-subsection (c-10). Reporting in furtherance of this
3314-requirement may be combined with other annual reporting
3315-requirements. Such reporting shall include proof of
3316-certification of each equity eligible contractor or equity
3317-eligible person during the applicable time period.
3318-(6) The Agency shall keep confidential all information
3319-and communication that provides private or personal
3320-information.
3321-(7) Modifications to the equity accountability system.
3322-As part of the update of the long-term renewable resources
3323-procurement plan to be initiated in 2023, or sooner if the
3324-Agency deems necessary, the Agency shall determine the
3325-extent to which the equity accountability system described
3326-in this subsection (c-10) has advanced the goals of this
3327-amendatory Act of the 102nd General Assembly, including
3328-through the inclusion of equity eligible persons and
3329-equity eligible contractors in renewable energy credit
3330-projects. If the Agency finds that the equity
3331-accountability system has failed to meet those goals to
3332-its fullest potential, the Agency may revise the following
3333-
3334-
3335-criteria for future Agency procurements: (A) the
3336-percentage of project workforce, or other appropriate
3337-workforce measure, certified as equity eligible persons or
3338-equity eligible contractors; (B) definitions for equity
3339-investment eligible persons and equity investment eligible
3340-community; and (C) such other modifications necessary to
3341-advance the goals of this amendatory Act of the 102nd
3342-General Assembly effectively. Such revised criteria may
3343-also establish distinct equity accountability systems for
3344-different types of procurements or different regions of
3345-the State if the Agency finds that doing so will further
3346-the purposes of such programs. Revisions shall be
3347-developed with stakeholder input, including from equity
3348-eligible persons, equity eligible contractors, and
3349-community-based organizations that work with such persons
3350-and contractors.
3351-(c-15) Racial discrimination elimination powers and
3352-process.
3353-(1) Purpose. It is the purpose of this subsection to
3354-empower the Agency and other State actors to remedy racial
3355-discrimination in Illinois' clean energy economy as
3356-effectively and expediently as possible, including through
3357-the use of race-conscious remedies, such as race-conscious
3358-contracting and hiring goals, as consistent with State and
3359-federal law.
3360-(2) Racial disparity and discrimination review
3361-
3362-
3363-process.
3364-(A) Within one year after awarding contracts using
3365-the equity actions processes established in this
3366-Section, the Agency shall publish a report evaluating
3367-the effectiveness of the equity actions point criteria
3368-of this Section in increasing participation of equity
3369-eligible persons and equity eligible contractors. The
3370-report shall disaggregate participating workers and
3371-contractors by race and ethnicity. The report shall be
3372-forwarded to the Governor, the General Assembly, and
3373-the Illinois Commerce Commission and be made available
3374-to the public.
3375-(B) As soon as is practicable thereafter, the
3376-Agency, in consultation with the Department of
3377-Commerce and Economic Opportunity, Department of
3378-Labor, and other agencies that may be relevant, shall
3379-commission and publish a disparity and availability
3380-study that measures the presence and impact of
3381-discrimination on minority businesses and workers in
3382-Illinois' clean energy economy. The Agency may hire
3383-consultants and experts to conduct the disparity and
3384-availability study, with the retention of those
3385-consultants and experts exempt from the requirements
3386-of Section 20-10 of the Illinois Procurement Code. The
3387-Illinois Power Agency shall forward a copy of its
3388-findings and recommendations to the Governor, the
3389-
3390-
3391-General Assembly, and the Illinois Commerce
3392-Commission. If the disparity and availability study
3393-establishes a strong basis in evidence that there is
3394-discrimination in Illinois' clean energy economy, the
3395-Agency, Department of Commerce and Economic
3396-Opportunity, Department of Labor, Department of
3397-Corrections, and other appropriate agencies shall take
3398-appropriate remedial actions, including race-conscious
3399-remedial actions as consistent with State and federal
3400-law, to effectively remedy this discrimination. Such
3401-remedies may include modification of the equity
3402-accountability system as described in subsection
3403-(c-10).
3404-(c-20) Program data collection.
3405-(1) Purpose. Data collection, data analysis, and
3406-reporting are critical to ensure that the benefits of the
3407-clean energy economy provided to Illinois residents and
3408-businesses are equitably distributed across the State. The
3409-Agency shall collect data from program applicants in order
3410-to track and improve equitable distribution of benefits
3411-across Illinois communities for all procurements the
3412-Agency conducts. The Agency shall use this data to, among
3413-other things, measure any potential impact of racial
3414-discrimination on the distribution of benefits and provide
3415-information necessary to correct any discrimination
3416-through methods consistent with State and federal law.
3417-
3418-
3419-(2) Agency collection of program data. The Agency
3420-shall collect demographic and geographic data for each
3421-entity awarded contracts under any Agency-administered
3422-program.
3423-(3) Required information to be collected. The Agency
3424-shall collect the following information from applicants
3425-and program participants where applicable:
3426-(A) demographic information, including racial or
3427-ethnic identity for real persons employed, contracted,
3428-or subcontracted through the program and owners of
3429-businesses or entities that apply to receive renewable
3430-energy credits from the Agency;
3431-(B) geographic location of the residency of real
3432-persons employed, contracted, or subcontracted through
3433-the program and geographic location of the
3434-headquarters of the business or entity that applies to
3435-receive renewable energy credits from the Agency; and
3436-(C) any other information the Agency determines is
3437-necessary for the purpose of achieving the purpose of
3438-this subsection.
3439-(4) Publication of collected information. The Agency
3440-shall publish, at least annually, information on the
3441-demographics of program participants on an aggregate
3442-basis.
3443-(5) Nothing in this subsection shall be interpreted to
3444-limit the authority of the Agency, or other agency or
3445-
3446-
3447-department of the State, to require or collect demographic
3448-information from applicants of other State programs.
3449-(c-25) Energy Workforce Equity Database.
3450-(1) The Agency, in consultation with the Department of
3451-Commerce and Economic Opportunity, shall create an Energy
3452-Workforce Equity Database, and may contract with a third
3453-party to do so ("database program administrator"). If the
3454-Department decides to contract with a third party, that
3455-third party shall be exempt from the requirements of
3456-Section 20-10 of the Illinois Procurement Code. The Energy
3457-Workforce Equity Database shall be a searchable database
3458-of suppliers, vendors, and subcontractors for clean energy
3459-industries that is:
3460-(A) publicly accessible;
3461-(B) easy for people to find and use;
3462-(C) organized by company specialty or field;
3463-(D) region-specific; and
3464-(E) populated with information including, but not
3465-limited to, contacts for suppliers, vendors, or
3466-subcontractors who are minority and women-owned
3467-business enterprise certified or who participate or
3468-have participated in any of the programs described in
3469-this Act.
3470-(2) The Agency shall create an easily accessible,
3471-public facing online tool using the database information
3472-that includes, at a minimum, the following:
3473-
3474-
3475-(A) a map of environmental justice and equity
3476-investment eligible communities;
3477-(B) job postings and recruiting opportunities;
3478-(C) a means by which recruiting clean energy
3479-companies can find and interact with current or former
3480-participants of clean energy workforce training
3481-programs;
3482-(D) information on workforce training service
3483-providers and training opportunities available to
3484-prospective workers;
3485-(E) renewable energy company diversity reporting;
3486-(F) a list of equity eligible contractors with
3487-their contact information, types of work performed,
3488-and locations worked in;
3489-(G) reporting on outcomes of the programs
3490-described in the workforce programs of the Energy
3491-Transition Act, including information such as, but not
3492-limited to, retention rate, graduation rate, and
3493-placement rates of trainees; and
3494-(H) information about the Jobs and Environmental
3495-Justice Grant Program, the Clean Energy Jobs and
3496-Justice Fund, and other sources of capital.
3497-(3) The Agency shall ensure the database is regularly
3498-updated to ensure information is current and shall
3499-coordinate with the Department of Commerce and Economic
3500-Opportunity to ensure that it includes information on
3501-
3502-
3503-individuals and entities that are or have participated in
3504-the Clean Jobs Workforce Network Program, Clean Energy
3505-Contractor Incubator Program, Returning Residents Clean
3506-Jobs Training Program, or Clean Energy Primes Contractor
3507-Accelerator Program.
3508-(c-30) Enforcement of minimum equity standards. All
3509-entities seeking renewable energy credits must submit an
3510-annual report to demonstrate compliance with each of the
3511-equity commitments required under subsection (c-10). If the
3512-Agency concludes the entity has not met or maintained its
3513-minimum equity standards required under the applicable
3514-subparagraphs under subsection (c-10), the Agency shall deny
3515-the entity's ability to participate in procurement programs in
3516-subsection (c), including by withholding approved vendor or
3517-designee status. The Agency may require the entity to enter
3518-into a corrective action plan. An entity that is not
3519-recertified for failing to meet required equity actions in
3520-subparagraph (c-10) may reapply once they have a corrective
3521-action plan and achieve compliance with the minimum equity
3522-standards.
3523-(d) Clean coal portfolio standard.
3524-(1) The procurement plans shall include electricity
3525-generated using clean coal. Each utility shall enter into
3526-one or more sourcing agreements with the initial clean
3527-coal facility, as provided in paragraph (3) of this
3528-subsection (d), covering electricity generated by the
3529-
3530-
3531-initial clean coal facility representing at least 5% of
3532-each utility's total supply to serve the load of eligible
3533-retail customers in 2015 and each year thereafter, as
3534-described in paragraph (3) of this subsection (d), subject
3535-to the limits specified in paragraph (2) of this
3536-subsection (d). It is the goal of the State that by January
3537-1, 2025, 25% of the electricity used in the State shall be
3538-generated by cost-effective clean coal facilities. For
3539-purposes of this subsection (d), "cost-effective" means
3540-that the expenditures pursuant to such sourcing agreements
3541-do not cause the limit stated in paragraph (2) of this
3542-subsection (d) to be exceeded and do not exceed cost-based
3543-benchmarks, which shall be developed to assess all
3544-expenditures pursuant to such sourcing agreements covering
3545-electricity generated by clean coal facilities, other than
3546-the initial clean coal facility, by the procurement
3547-administrator, in consultation with the Commission staff,
3548-Agency staff, and the procurement monitor and shall be
3549-subject to Commission review and approval.
3550-A utility party to a sourcing agreement shall
3551-immediately retire any emission credits that it receives
3552-in connection with the electricity covered by such
3553-agreement.
3554-Utilities shall maintain adequate records documenting
3555-the purchases under the sourcing agreement to comply with
3556-this subsection (d) and shall file an accounting with the
3557-
3558-
3559-load forecast that must be filed with the Agency by July 15
3560-of each year, in accordance with subsection (d) of Section
3561-16-111.5 of the Public Utilities Act.
3562-A utility shall be deemed to have complied with the
3563-clean coal portfolio standard specified in this subsection
3564-(d) if the utility enters into a sourcing agreement as
3565-required by this subsection (d).
3566-(2) For purposes of this subsection (d), the required
3567-execution of sourcing agreements with the initial clean
3568-coal facility for a particular year shall be measured as a
3569-percentage of the actual amount of electricity
3570-(megawatt-hours) supplied by the electric utility to
3571-eligible retail customers in the planning year ending
3572-immediately prior to the agreement's execution. For
3573-purposes of this subsection (d), the amount paid per
3574-kilowatthour means the total amount paid for electric
3575-service expressed on a per kilowatthour basis. For
3576-purposes of this subsection (d), the total amount paid for
3577-electric service includes without limitation amounts paid
3578-for supply, transmission, distribution, surcharges and
3579-add-on taxes.
3580-Notwithstanding the requirements of this subsection
3581-(d), the total amount paid under sourcing agreements with
3582-clean coal facilities pursuant to the procurement plan for
3583-any given year shall be reduced by an amount necessary to
3584-limit the annual estimated average net increase due to the
3585-
3586-
3587-costs of these resources included in the amounts paid by
3588-eligible retail customers in connection with electric
3589-service to:
3590-(A) in 2010, no more than 0.5% of the amount paid
3591-per kilowatthour by those customers during the year
3592-ending May 31, 2009;
3593-(B) in 2011, the greater of an additional 0.5% of
3594-the amount paid per kilowatthour by those customers
3595-during the year ending May 31, 2010 or 1% of the amount
3596-paid per kilowatthour by those customers during the
3597-year ending May 31, 2009;
3598-(C) in 2012, the greater of an additional 0.5% of
3599-the amount paid per kilowatthour by those customers
3600-during the year ending May 31, 2011 or 1.5% of the
3601-amount paid per kilowatthour by those customers during
3602-the year ending May 31, 2009;
3603-(D) in 2013, the greater of an additional 0.5% of
3604-the amount paid per kilowatthour by those customers
3605-during the year ending May 31, 2012 or 2% of the amount
3606-paid per kilowatthour by those customers during the
3607-year ending May 31, 2009; and
3608-(E) thereafter, the total amount paid under
3609-sourcing agreements with clean coal facilities
3610-pursuant to the procurement plan for any single year
3611-shall be reduced by an amount necessary to limit the
3612-estimated average net increase due to the cost of
3613-
3614-
3615-these resources included in the amounts paid by
3616-eligible retail customers in connection with electric
3617-service to no more than the greater of (i) 2.015% of
3618-the amount paid per kilowatthour by those customers
3619-during the year ending May 31, 2009 or (ii) the
3620-incremental amount per kilowatthour paid for these
3621-resources in 2013. These requirements may be altered
3622-only as provided by statute.
3623-No later than June 30, 2015, the Commission shall
3624-review the limitation on the total amount paid under
3625-sourcing agreements, if any, with clean coal facilities
3626-pursuant to this subsection (d) and report to the General
3627-Assembly its findings as to whether that limitation unduly
3628-constrains the amount of electricity generated by
3629-cost-effective clean coal facilities that is covered by
3630-sourcing agreements.
3631-(3) Initial clean coal facility. In order to promote
3632-development of clean coal facilities in Illinois, each
3633-electric utility subject to this Section shall execute a
3634-sourcing agreement to source electricity from a proposed
3635-clean coal facility in Illinois (the "initial clean coal
3636-facility") that will have a nameplate capacity of at least
3637-500 MW when commercial operation commences, that has a
3638-final Clean Air Act permit on June 1, 2009 (the effective
3639-date of Public Act 95-1027), and that will meet the
3640-definition of clean coal facility in Section 1-10 of this
3641-
3642-
3643-Act when commercial operation commences. The sourcing
3644-agreements with this initial clean coal facility shall be
3645-subject to both approval of the initial clean coal
3646-facility by the General Assembly and satisfaction of the
3647-requirements of paragraph (4) of this subsection (d) and
3648-shall be executed within 90 days after any such approval
3649-by the General Assembly. The Agency and the Commission
3650-shall have authority to inspect all books and records
3651-associated with the initial clean coal facility during the
3652-term of such a sourcing agreement. A utility's sourcing
3653-agreement for electricity produced by the initial clean
3654-coal facility shall include:
3655-(A) a formula contractual price (the "contract
3656-price") approved pursuant to paragraph (4) of this
3657-subsection (d), which shall:
3658-(i) be determined using a cost of service
3659-methodology employing either a level or deferred
3660-capital recovery component, based on a capital
3661-structure consisting of 45% equity and 55% debt,
3662-and a return on equity as may be approved by the
3663-Federal Energy Regulatory Commission, which in any
3664-case may not exceed the lower of 11.5% or the rate
3665-of return approved by the General Assembly
3666-pursuant to paragraph (4) of this subsection (d);
3667-and
3668-(ii) provide that all miscellaneous net
3669-
3670-
3671-revenue, including but not limited to net revenue
3672-from the sale of emission allowances, if any,
3673-substitute natural gas, if any, grants or other
3674-support provided by the State of Illinois or the
3675-United States Government, firm transmission
3676-rights, if any, by-products produced by the
3677-facility, energy or capacity derived from the
3678-facility and not covered by a sourcing agreement
3679-pursuant to paragraph (3) of this subsection (d)
3680-or item (5) of subsection (d) of Section 16-115 of
3681-the Public Utilities Act, whether generated from
3682-the synthesis gas derived from coal, from SNG, or
3683-from natural gas, shall be credited against the
3684-revenue requirement for this initial clean coal
3685-facility;
3686-(B) power purchase provisions, which shall:
3687-(i) provide that the utility party to such
3688-sourcing agreement shall pay the contract price
3689-for electricity delivered under such sourcing
3690-agreement;
3691-(ii) require delivery of electricity to the
3692-regional transmission organization market of the
3693-utility that is party to such sourcing agreement;
3694-(iii) require the utility party to such
3695-sourcing agreement to buy from the initial clean
3696-coal facility in each hour an amount of energy
3697-
3698-
3699-equal to all clean coal energy made available from
3700-the initial clean coal facility during such hour
3701-times a fraction, the numerator of which is such
3702-utility's retail market sales of electricity
3703-(expressed in kilowatthours sold) in the State
3704-during the prior calendar month and the
3705-denominator of which is the total retail market
3706-sales of electricity (expressed in kilowatthours
3707-sold) in the State by utilities during such prior
3708-month and the sales of electricity (expressed in
3709-kilowatthours sold) in the State by alternative
3710-retail electric suppliers during such prior month
3711-that are subject to the requirements of this
3712-subsection (d) and paragraph (5) of subsection (d)
3713-of Section 16-115 of the Public Utilities Act,
3714-provided that the amount purchased by the utility
3715-in any year will be limited by paragraph (2) of
3716-this subsection (d); and
3717-(iv) be considered pre-existing contracts in
3718-such utility's procurement plans for eligible
3719-retail customers;
3720-(C) contract for differences provisions, which
3721-shall:
3722-(i) require the utility party to such sourcing
3723-agreement to contract with the initial clean coal
3724-facility in each hour with respect to an amount of
3725-
3726-
3727-energy equal to all clean coal energy made
3728-available from the initial clean coal facility
3729-during such hour times a fraction, the numerator
3730-of which is such utility's retail market sales of
3731-electricity (expressed in kilowatthours sold) in
3732-the utility's service territory in the State
3733-during the prior calendar month and the
3734-denominator of which is the total retail market
3735-sales of electricity (expressed in kilowatthours
3736-sold) in the State by utilities during such prior
3737-month and the sales of electricity (expressed in
3738-kilowatthours sold) in the State by alternative
3739-retail electric suppliers during such prior month
3740-that are subject to the requirements of this
3741-subsection (d) and paragraph (5) of subsection (d)
3742-of Section 16-115 of the Public Utilities Act,
3743-provided that the amount paid by the utility in
3744-any year will be limited by paragraph (2) of this
3745-subsection (d);
3746-(ii) provide that the utility's payment
3747-obligation in respect of the quantity of
3748-electricity determined pursuant to the preceding
3749-clause (i) shall be limited to an amount equal to
3750-(1) the difference between the contract price
3751-determined pursuant to subparagraph (A) of
3752-paragraph (3) of this subsection (d) and the
3753-
3754-
3755-day-ahead price for electricity delivered to the
3756-regional transmission organization market of the
3757-utility that is party to such sourcing agreement
3758-(or any successor delivery point at which such
3759-utility's supply obligations are financially
3760-settled on an hourly basis) (the "reference
3761-price") on the day preceding the day on which the
3762-electricity is delivered to the initial clean coal
3763-facility busbar, multiplied by (2) the quantity of
3764-electricity determined pursuant to the preceding
3765-clause (i); and
3766-(iii) not require the utility to take physical
3767-delivery of the electricity produced by the
3768-facility;
3769-(D) general provisions, which shall:
3770-(i) specify a term of no more than 30 years,
3771-commencing on the commercial operation date of the
3772-facility;
3773-(ii) provide that utilities shall maintain
3774-adequate records documenting purchases under the
3775-sourcing agreements entered into to comply with
3776-this subsection (d) and shall file an accounting
3777-with the load forecast that must be filed with the
3778-Agency by July 15 of each year, in accordance with
3779-subsection (d) of Section 16-111.5 of the Public
3780-Utilities Act;
3781-
3782-
3783-(iii) provide that all costs associated with
3784-the initial clean coal facility will be
3785-periodically reported to the Federal Energy
3786-Regulatory Commission and to purchasers in
3787-accordance with applicable laws governing
3788-cost-based wholesale power contracts;
3789-(iv) permit the Illinois Power Agency to
3790-assume ownership of the initial clean coal
3791-facility, without monetary consideration and
3792-otherwise on reasonable terms acceptable to the
3793-Agency, if the Agency so requests no less than 3
3794-years prior to the end of the stated contract
3795-term;
3796-(v) require the owner of the initial clean
3797-coal facility to provide documentation to the
3798-Commission each year, starting in the facility's
3799-first year of commercial operation, accurately
3800-reporting the quantity of carbon emissions from
3801-the facility that have been captured and
3802-sequestered and report any quantities of carbon
3803-released from the site or sites at which carbon
3804-emissions were sequestered in prior years, based
3805-on continuous monitoring of such sites. If, in any
3806-year after the first year of commercial operation,
3807-the owner of the facility fails to demonstrate
3808-that the initial clean coal facility captured and
3809-
3810-
3811-sequestered at least 50% of the total carbon
3812-emissions that the facility would otherwise emit
3813-or that sequestration of emissions from prior
3814-years has failed, resulting in the release of
3815-carbon dioxide into the atmosphere, the owner of
3816-the facility must offset excess emissions. Any
3817-such carbon offsets must be permanent, additional,
3818-verifiable, real, located within the State of
3819-Illinois, and legally and practicably enforceable.
3820-The cost of such offsets for the facility that are
3821-not recoverable shall not exceed $15 million in
3822-any given year. No costs of any such purchases of
3823-carbon offsets may be recovered from a utility or
3824-its customers. All carbon offsets purchased for
3825-this purpose and any carbon emission credits
3826-associated with sequestration of carbon from the
3827-facility must be permanently retired. The initial
3828-clean coal facility shall not forfeit its
3829-designation as a clean coal facility if the
3830-facility fails to fully comply with the applicable
3831-carbon sequestration requirements in any given
3832-year, provided the requisite offsets are
3833-purchased. However, the Attorney General, on
3834-behalf of the People of the State of Illinois, may
3835-specifically enforce the facility's sequestration
3836-requirement and the other terms of this contract
3837-
3838-
3839-provision. Compliance with the sequestration
3840-requirements and offset purchase requirements
3841-specified in paragraph (3) of this subsection (d)
3842-shall be reviewed annually by an independent
3843-expert retained by the owner of the initial clean
3844-coal facility, with the advance written approval
3845-of the Attorney General. The Commission may, in
3846-the course of the review specified in item (vii),
3847-reduce the allowable return on equity for the
3848-facility if the facility willfully fails to comply
3849-with the carbon capture and sequestration
3850-requirements set forth in this item (v);
3851-(vi) include limits on, and accordingly
3852-provide for modification of, the amount the
3853-utility is required to source under the sourcing
3854-agreement consistent with paragraph (2) of this
3855-subsection (d);
3856-(vii) require Commission review: (1) to
3857-determine the justness, reasonableness, and
3858-prudence of the inputs to the formula referenced
3859-in subparagraphs (A)(i) through (A)(iii) of
3860-paragraph (3) of this subsection (d), prior to an
3861-adjustment in those inputs including, without
3862-limitation, the capital structure and return on
3863-equity, fuel costs, and other operations and
3864-maintenance costs and (2) to approve the costs to
3865-
3866-
3867-be passed through to customers under the sourcing
3868-agreement by which the utility satisfies its
3869-statutory obligations. Commission review shall
3870-occur no less than every 3 years, regardless of
3871-whether any adjustments have been proposed, and
3872-shall be completed within 9 months;
3873-(viii) limit the utility's obligation to such
3874-amount as the utility is allowed to recover
3875-through tariffs filed with the Commission,
3876-provided that neither the clean coal facility nor
3877-the utility waives any right to assert federal
3878-pre-emption or any other argument in response to a
3879-purported disallowance of recovery costs;
3880-(ix) limit the utility's or alternative retail
3881-electric supplier's obligation to incur any
3882-liability until such time as the facility is in
3883-commercial operation and generating power and
3884-energy and such power and energy is being
3885-delivered to the facility busbar;
3886-(x) provide that the owner or owners of the
3887-initial clean coal facility, which is the
3888-counterparty to such sourcing agreement, shall
3889-have the right from time to time to elect whether
3890-the obligations of the utility party thereto shall
3891-be governed by the power purchase provisions or
3892-the contract for differences provisions;
3893-
3894-
3895-(xi) append documentation showing that the
3896-formula rate and contract, insofar as they relate
3897-to the power purchase provisions, have been
3898-approved by the Federal Energy Regulatory
3899-Commission pursuant to Section 205 of the Federal
3900-Power Act;
3901-(xii) provide that any changes to the terms of
3902-the contract, insofar as such changes relate to
3903-the power purchase provisions, are subject to
3904-review under the public interest standard applied
3905-by the Federal Energy Regulatory Commission
3906-pursuant to Sections 205 and 206 of the Federal
3907-Power Act; and
3908-(xiii) conform with customary lender
3909-requirements in power purchase agreements used as
3910-the basis for financing non-utility generators.
3911-(4) Effective date of sourcing agreements with the
3912-initial clean coal facility. Any proposed sourcing
3913-agreement with the initial clean coal facility shall not
3914-become effective unless the following reports are prepared
3915-and submitted and authorizations and approvals obtained:
3916-(i) Facility cost report. The owner of the initial
3917-clean coal facility shall submit to the Commission,
3918-the Agency, and the General Assembly a front-end
3919-engineering and design study, a facility cost report,
3920-method of financing (including but not limited to
3921-
3922-
3923-structure and associated costs), and an operating and
3924-maintenance cost quote for the facility (collectively
3925-"facility cost report"), which shall be prepared in
3926-accordance with the requirements of this paragraph (4)
3927-of subsection (d) of this Section, and shall provide
3928-the Commission and the Agency access to the work
3929-papers, relied upon documents, and any other backup
3930-documentation related to the facility cost report.
3931-(ii) Commission report. Within 6 months following
3932-receipt of the facility cost report, the Commission,
3933-in consultation with the Agency, shall submit a report
3934-to the General Assembly setting forth its analysis of
3935-the facility cost report. Such report shall include,
3936-but not be limited to, a comparison of the costs
3937-associated with electricity generated by the initial
3938-clean coal facility to the costs associated with
3939-electricity generated by other types of generation
3940-facilities, an analysis of the rate impacts on
3941-residential and small business customers over the life
3942-of the sourcing agreements, and an analysis of the
3943-likelihood that the initial clean coal facility will
3944-commence commercial operation by and be delivering
3945-power to the facility's busbar by 2016. To assist in
3946-the preparation of its report, the Commission, in
3947-consultation with the Agency, may hire one or more
3948-experts or consultants, the costs of which shall be
3949-
3950-
3951-paid for by the owner of the initial clean coal
3952-facility. The Commission and Agency may begin the
3953-process of selecting such experts or consultants prior
3954-to receipt of the facility cost report.
3955-(iii) General Assembly approval. The proposed
3956-sourcing agreements shall not take effect unless,
3957-based on the facility cost report and the Commission's
3958-report, the General Assembly enacts authorizing
3959-legislation approving (A) the projected price, stated
3960-in cents per kilowatthour, to be charged for
3961-electricity generated by the initial clean coal
3962-facility, (B) the projected impact on residential and
3963-small business customers' bills over the life of the
3964-sourcing agreements, and (C) the maximum allowable
3965-return on equity for the project; and
3966-(iv) Commission review. If the General Assembly
3967-enacts authorizing legislation pursuant to
3968-subparagraph (iii) approving a sourcing agreement, the
3969-Commission shall, within 90 days of such enactment,
3970-complete a review of such sourcing agreement. During
3971-such time period, the Commission shall implement any
3972-directive of the General Assembly, resolve any
3973-disputes between the parties to the sourcing agreement
3974-concerning the terms of such agreement, approve the
3975-form of such agreement, and issue an order finding
3976-that the sourcing agreement is prudent and reasonable.
3977-
3978-
3979-The facility cost report shall be prepared as follows:
3980-(A) The facility cost report shall be prepared by
3981-duly licensed engineering and construction firms
3982-detailing the estimated capital costs payable to one
3983-or more contractors or suppliers for the engineering,
3984-procurement and construction of the components
3985-comprising the initial clean coal facility and the
3986-estimated costs of operation and maintenance of the
3987-facility. The facility cost report shall include:
3988-(i) an estimate of the capital cost of the
3989-core plant based on one or more front end
3990-engineering and design studies for the
3991-gasification island and related facilities. The
3992-core plant shall include all civil, structural,
3993-mechanical, electrical, control, and safety
3994-systems.
3995-(ii) an estimate of the capital cost of the
3996-balance of the plant, including any capital costs
3997-associated with sequestration of carbon dioxide
3998-emissions and all interconnects and interfaces
3999-required to operate the facility, such as
4000-transmission of electricity, construction or
4001-backfeed power supply, pipelines to transport
4002-substitute natural gas or carbon dioxide, potable
4003-water supply, natural gas supply, water supply,
4004-water discharge, landfill, access roads, and coal
4005-
4006-
4007-delivery.
4008-The quoted construction costs shall be expressed
4009-in nominal dollars as of the date that the quote is
4010-prepared and shall include capitalized financing costs
4011-during construction, taxes, insurance, and other
4012-owner's costs, and an assumed escalation in materials
4013-and labor beyond the date as of which the construction
4014-cost quote is expressed.
4015-(B) The front end engineering and design study for
4016-the gasification island and the cost study for the
4017-balance of plant shall include sufficient design work
4018-to permit quantification of major categories of
4019-materials, commodities and labor hours, and receipt of
4020-quotes from vendors of major equipment required to
4021-construct and operate the clean coal facility.
4022-(C) The facility cost report shall also include an
4023-operating and maintenance cost quote that will provide
4024-the estimated cost of delivered fuel, personnel,
4025-maintenance contracts, chemicals, catalysts,
4026-consumables, spares, and other fixed and variable
4027-operations and maintenance costs. The delivered fuel
4028-cost estimate will be provided by a recognized third
4029-party expert or experts in the fuel and transportation
4030-industries. The balance of the operating and
4031-maintenance cost quote, excluding delivered fuel
4032-costs, will be developed based on the inputs provided
4033-
4034-
4035-by duly licensed engineering and construction firms
4036-performing the construction cost quote, potential
4037-vendors under long-term service agreements and plant
4038-operating agreements, or recognized third party plant
4039-operator or operators.
4040-The operating and maintenance cost quote
4041-(including the cost of the front end engineering and
4042-design study) shall be expressed in nominal dollars as
4043-of the date that the quote is prepared and shall
4044-include taxes, insurance, and other owner's costs, and
4045-an assumed escalation in materials and labor beyond
4046-the date as of which the operating and maintenance
4047-cost quote is expressed.
4048-(D) The facility cost report shall also include an
4049-analysis of the initial clean coal facility's ability
4050-to deliver power and energy into the applicable
4051-regional transmission organization markets and an
4052-analysis of the expected capacity factor for the
4053-initial clean coal facility.
4054-(E) Amounts paid to third parties unrelated to the
4055-owner or owners of the initial clean coal facility to
4056-prepare the core plant construction cost quote,
4057-including the front end engineering and design study,
4058-and the operating and maintenance cost quote will be
4059-reimbursed through Coal Development Bonds.
4060-(5) Re-powering and retrofitting coal-fired power
4061-
4062-
4063-plants previously owned by Illinois utilities to qualify
4064-as clean coal facilities. During the 2009 procurement
4065-planning process and thereafter, the Agency and the
4066-Commission shall consider sourcing agreements covering
4067-electricity generated by power plants that were previously
4068-owned by Illinois utilities and that have been or will be
4069-converted into clean coal facilities, as defined by
4070-Section 1-10 of this Act. Pursuant to such procurement
4071-planning process, the owners of such facilities may
4072-propose to the Agency sourcing agreements with utilities
4073-and alternative retail electric suppliers required to
4074-comply with subsection (d) of this Section and item (5) of
4075-subsection (d) of Section 16-115 of the Public Utilities
4076-Act, covering electricity generated by such facilities. In
4077-the case of sourcing agreements that are power purchase
4078-agreements, the contract price for electricity sales shall
4079-be established on a cost of service basis. In the case of
4080-sourcing agreements that are contracts for differences,
4081-the contract price from which the reference price is
4082-subtracted shall be established on a cost of service
4083-basis. The Agency and the Commission may approve any such
4084-utility sourcing agreements that do not exceed cost-based
4085-benchmarks developed by the procurement administrator, in
4086-consultation with the Commission staff, Agency staff and
4087-the procurement monitor, subject to Commission review and
4088-approval. The Commission shall have authority to inspect
4089-
4090-
4091-all books and records associated with these clean coal
4092-facilities during the term of any such contract.
4093-(6) Costs incurred under this subsection (d) or
4094-pursuant to a contract entered into under this subsection
4095-(d) shall be deemed prudently incurred and reasonable in
4096-amount and the electric utility shall be entitled to full
4097-cost recovery pursuant to the tariffs filed with the
4098-Commission.
4099-(d-5) Zero emission standard.
4100-(1) Beginning with the delivery year commencing on
4101-June 1, 2017, the Agency shall, for electric utilities
4102-that serve at least 100,000 retail customers in this
4103-State, procure contracts with zero emission facilities
4104-that are reasonably capable of generating cost-effective
4105-zero emission credits in an amount approximately equal to
4106-16% of the actual amount of electricity delivered by each
4107-electric utility to retail customers in the State during
4108-calendar year 2014. For an electric utility serving fewer
4109-than 100,000 retail customers in this State that
4110-requested, under Section 16-111.5 of the Public Utilities
4111-Act, that the Agency procure power and energy for all or a
4112-portion of the utility's Illinois load for the delivery
4113-year commencing June 1, 2016, the Agency shall procure
4114-contracts with zero emission facilities that are
4115-reasonably capable of generating cost-effective zero
4116-emission credits in an amount approximately equal to 16%
4117-
4118-
4119-of the portion of power and energy to be procured by the
4120-Agency for the utility. The duration of the contracts
4121-procured under this subsection (d-5) shall be for a term
4122-of 10 years ending May 31, 2027. The quantity of zero
4123-emission credits to be procured under the contracts shall
4124-be all of the zero emission credits generated by the zero
4125-emission facility in each delivery year; however, if the
4126-zero emission facility is owned by more than one entity,
4127-then the quantity of zero emission credits to be procured
4128-under the contracts shall be the amount of zero emission
4129-credits that are generated from the portion of the zero
4130-emission facility that is owned by the winning supplier.
4131-The 16% value identified in this paragraph (1) is the
4132-average of the percentage targets in subparagraph (B) of
4133-paragraph (1) of subsection (c) of this Section for the 5
4134-delivery years beginning June 1, 2017.
4135-The procurement process shall be subject to the
4136-following provisions:
4137-(A) Those zero emission facilities that intend to
4138-participate in the procurement shall submit to the
4139-Agency the following eligibility information for each
4140-zero emission facility on or before the date
4141-established by the Agency:
4142-(i) the in-service date and remaining useful
4143-life of the zero emission facility;
4144-(ii) the amount of power generated annually
4145-
4146-
4147-for each of the years 2005 through 2015, and the
4148-projected zero emission credits to be generated
4149-over the remaining useful life of the zero
4150-emission facility, which shall be used to
4151-determine the capability of each facility;
4152-(iii) the annual zero emission facility cost
4153-projections, expressed on a per megawatthour
4154-basis, over the next 6 delivery years, which shall
4155-include the following: operation and maintenance
4156-expenses; fully allocated overhead costs, which
4157-shall be allocated using the methodology developed
4158-by the Institute for Nuclear Power Operations;
4159-fuel expenditures; non-fuel capital expenditures;
4160-spent fuel expenditures; a return on working
4161-capital; the cost of operational and market risks
4162-that could be avoided by ceasing operation; and
4163-any other costs necessary for continued
4164-operations, provided that "necessary" means, for
4165-purposes of this item (iii), that the costs could
4166-reasonably be avoided only by ceasing operations
4167-of the zero emission facility; and
4168-(iv) a commitment to continue operating, for
4169-the duration of the contract or contracts executed
4170-under the procurement held under this subsection
4171-(d-5), the zero emission facility that produces
4172-the zero emission credits to be procured in the
4173-
4174-
4175-procurement.
4176-The information described in item (iii) of this
4177-subparagraph (A) may be submitted on a confidential
4178-basis and shall be treated and maintained by the
4179-Agency, the procurement administrator, and the
4180-Commission as confidential and proprietary and exempt
4181-from disclosure under subparagraphs (a) and (g) of
4182-paragraph (1) of Section 7 of the Freedom of
4183-Information Act. The Office of Attorney General shall
4184-have access to, and maintain the confidentiality of,
4185-such information pursuant to Section 6.5 of the
4186-Attorney General Act.
4187-(B) The price for each zero emission credit
4188-procured under this subsection (d-5) for each delivery
4189-year shall be in an amount that equals the Social Cost
4190-of Carbon, expressed on a price per megawatthour
4191-basis. However, to ensure that the procurement remains
4192-affordable to retail customers in this State if
4193-electricity prices increase, the price in an
4194-applicable delivery year shall be reduced below the
4195-Social Cost of Carbon by the amount ("Price
4196-Adjustment") by which the market price index for the
4197-applicable delivery year exceeds the baseline market
4198-price index for the consecutive 12-month period ending
4199-May 31, 2016. If the Price Adjustment is greater than
4200-or equal to the Social Cost of Carbon in an applicable
4201-
4202-
4203-delivery year, then no payments shall be due in that
4204-delivery year. The components of this calculation are
4205-defined as follows:
4206-(i) Social Cost of Carbon: The Social Cost of
4207-Carbon is $16.50 per megawatthour, which is based
4208-on the U.S. Interagency Working Group on Social
4209-Cost of Carbon's price in the August 2016
4210-Technical Update using a 3% discount rate,
4211-adjusted for inflation for each year of the
4212-program. Beginning with the delivery year
4213-commencing June 1, 2023, the price per
4214-megawatthour shall increase by $1 per
4215-megawatthour, and continue to increase by an
4216-additional $1 per megawatthour each delivery year
4217-thereafter.
4218-(ii) Baseline market price index: The baseline
4219-market price index for the consecutive 12-month
4220-period ending May 31, 2016 is $31.40 per
4221-megawatthour, which is based on the sum of (aa)
4222-the average day-ahead energy price across all
4223-hours of such 12-month period at the PJM
4224-Interconnection LLC Northern Illinois Hub, (bb)
4225-50% multiplied by the Base Residual Auction, or
4226-its successor, capacity price for the rest of the
4227-RTO zone group determined by PJM Interconnection
4228-LLC, divided by 24 hours per day, and (cc) 50%
4229-
4230-
4231-multiplied by the Planning Resource Auction, or
4232-its successor, capacity price for Zone 4
4233-determined by the Midcontinent Independent System
4234-Operator, Inc., divided by 24 hours per day.
4235-(iii) Market price index: The market price
4236-index for a delivery year shall be the sum of
4237-projected energy prices and projected capacity
4238-prices determined as follows:
4239-(aa) Projected energy prices: the
4240-projected energy prices for the applicable
4241-delivery year shall be calculated once for the
4242-year using the forward market price for the
4243-PJM Interconnection, LLC Northern Illinois
4244-Hub. The forward market price shall be
4245-calculated as follows: the energy forward
4246-prices for each month of the applicable
4247-delivery year averaged for each trade date
4248-during the calendar year immediately preceding
4249-that delivery year to produce a single energy
4250-forward price for the delivery year. The
4251-forward market price calculation shall use
4252-data published by the Intercontinental
4253-Exchange, or its successor.
4254-(bb) Projected capacity prices:
4255-(I) For the delivery years commencing
4256-June 1, 2017, June 1, 2018, and June 1,
4257-
4258-
4259-2019, the projected capacity price shall
4260-be equal to the sum of (1) 50% multiplied
4261-by the Base Residual Auction, or its
4262-successor, price for the rest of the RTO
4263-zone group as determined by PJM
4264-Interconnection LLC, divided by 24 hours
4265-per day and, (2) 50% multiplied by the
4266-resource auction price determined in the
4267-resource auction administered by the
4268-Midcontinent Independent System Operator,
4269-Inc., in which the largest percentage of
4270-load cleared for Local Resource Zone 4,
4271-divided by 24 hours per day, and where
4272-such price is determined by the
4273-Midcontinent Independent System Operator,
4274-Inc.
4275-(II) For the delivery year commencing
4276-June 1, 2020, and each year thereafter,
4277-the projected capacity price shall be
4278-equal to the sum of (1) 50% multiplied by
4279-the Base Residual Auction, or its
4280-successor, price for the ComEd zone as
4281-determined by PJM Interconnection LLC,
4282-divided by 24 hours per day, and (2) 50%
4283-multiplied by the resource auction price
4284-determined in the resource auction
4285-
4286-
4287-administered by the Midcontinent
4288-Independent System Operator, Inc., in
4289-which the largest percentage of load
4290-cleared for Local Resource Zone 4, divided
4291-by 24 hours per day, and where such price
4292-is determined by the Midcontinent
4293-Independent System Operator, Inc.
4294-For purposes of this subsection (d-5):
4295-"Rest of the RTO" and "ComEd Zone" shall have
4296-the meaning ascribed to them by PJM
4297-Interconnection, LLC.
4298-"RTO" means regional transmission
4299-organization.
4300-(C) No later than 45 days after June 1, 2017 (the
4301-effective date of Public Act 99-906), the Agency shall
4302-publish its proposed zero emission standard
4303-procurement plan. The plan shall be consistent with
4304-the provisions of this paragraph (1) and shall provide
4305-that winning bids shall be selected based on public
4306-interest criteria that include, but are not limited
4307-to, minimizing carbon dioxide emissions that result
4308-from electricity consumed in Illinois and minimizing
4309-sulfur dioxide, nitrogen oxide, and particulate matter
4310-emissions that adversely affect the citizens of this
4311-State. In particular, the selection of winning bids
4312-shall take into account the incremental environmental
4313-
4314-
4315-benefits resulting from the procurement, such as any
4316-existing environmental benefits that are preserved by
4317-the procurements held under Public Act 99-906 and
4318-would cease to exist if the procurements were not
4319-held, including the preservation of zero emission
4320-facilities. The plan shall also describe in detail how
4321-each public interest factor shall be considered and
4322-weighted in the bid selection process to ensure that
4323-the public interest criteria are applied to the
4324-procurement and given full effect.
4325-For purposes of developing the plan, the Agency
4326-shall consider any reports issued by a State agency,
4327-board, or commission under House Resolution 1146 of
4328-the 98th General Assembly and paragraph (4) of
4329-subsection (d) of this Section, as well as publicly
4330-available analyses and studies performed by or for
4331-regional transmission organizations that serve the
4332-State and their independent market monitors.
4333-Upon publishing of the zero emission standard
4334-procurement plan, copies of the plan shall be posted
4335-and made publicly available on the Agency's website.
4336-All interested parties shall have 10 days following
4337-the date of posting to provide comment to the Agency on
4338-the plan. All comments shall be posted to the Agency's
4339-website. Following the end of the comment period, but
4340-no more than 60 days later than June 1, 2017 (the
4341-
4342-
4343-effective date of Public Act 99-906), the Agency shall
4344-revise the plan as necessary based on the comments
4345-received and file its zero emission standard
4346-procurement plan with the Commission.
4347-If the Commission determines that the plan will
4348-result in the procurement of cost-effective zero
4349-emission credits, then the Commission shall, after
4350-notice and hearing, but no later than 45 days after the
4351-Agency filed the plan, approve the plan or approve
4352-with modification. For purposes of this subsection
4353-(d-5), "cost effective" means the projected costs of
4354-procuring zero emission credits from zero emission
4355-facilities do not cause the limit stated in paragraph
4356-(2) of this subsection to be exceeded.
4357-(C-5) As part of the Commission's review and
4358-acceptance or rejection of the procurement results,
4359-the Commission shall, in its public notice of
4360-successful bidders:
4361-(i) identify how the winning bids satisfy the
4362-public interest criteria described in subparagraph
4363-(C) of this paragraph (1) of minimizing carbon
4364-dioxide emissions that result from electricity
4365-consumed in Illinois and minimizing sulfur
4366-dioxide, nitrogen oxide, and particulate matter
4367-emissions that adversely affect the citizens of
4368-this State;
4369-
4370-
4371-(ii) specifically address how the selection of
4372-winning bids takes into account the incremental
4373-environmental benefits resulting from the
4374-procurement, including any existing environmental
4375-benefits that are preserved by the procurements
4376-held under Public Act 99-906 and would have ceased
4377-to exist if the procurements had not been held,
4378-such as the preservation of zero emission
4379-facilities;
4380-(iii) quantify the environmental benefit of
4381-preserving the resources identified in item (ii)
4382-of this subparagraph (C-5), including the
4383-following:
4384-(aa) the value of avoided greenhouse gas
4385-emissions measured as the product of the zero
4386-emission facilities' output over the contract
4387-term multiplied by the U.S. Environmental
4388-Protection Agency eGrid subregion carbon
4389-dioxide emission rate and the U.S. Interagency
4390-Working Group on Social Cost of Carbon's price
4391-in the August 2016 Technical Update using a 3%
4392-discount rate, adjusted for inflation for each
4393-delivery year; and
4394-(bb) the costs of replacement with other
4395-zero carbon dioxide resources, including wind
4396-and photovoltaic, based upon the simple
4397-
4398-
4399-average of the following:
4400-(I) the price, or if there is more
4401-than one price, the average of the prices,
4402-paid for renewable energy credits from new
4403-utility-scale wind projects in the
4404-procurement events specified in item (i)
4405-of subparagraph (G) of paragraph (1) of
4406-subsection (c) of this Section; and
4407-(II) the price, or if there is more
4408-than one price, the average of the prices,
4409-paid for renewable energy credits from new
4410-utility-scale solar projects and
4411-brownfield site photovoltaic projects in
4412-the procurement events specified in item
4413-(ii) of subparagraph (G) of paragraph (1)
4414-of subsection (c) of this Section and,
4415-after January 1, 2015, renewable energy
4416-credits from photovoltaic distributed
4417-generation projects in procurement events
4418-held under subsection (c) of this Section.
4419-Each utility shall enter into binding contractual
4420-arrangements with the winning suppliers.
4421-The procurement described in this subsection
4422-(d-5), including, but not limited to, the execution of
4423-all contracts procured, shall be completed no later
4424-than May 10, 2017. Based on the effective date of
4425-
4426-
4427-Public Act 99-906, the Agency and Commission may, as
4428-appropriate, modify the various dates and timelines
4429-under this subparagraph and subparagraphs (C) and (D)
4430-of this paragraph (1). The procurement and plan
4431-approval processes required by this subsection (d-5)
4432-shall be conducted in conjunction with the procurement
4433-and plan approval processes required by subsection (c)
4434-of this Section and Section 16-111.5 of the Public
4435-Utilities Act, to the extent practicable.
4436-Notwithstanding whether a procurement event is
4437-conducted under Section 16-111.5 of the Public
4438-Utilities Act, the Agency shall immediately initiate a
4439-procurement process on June 1, 2017 (the effective
4440-date of Public Act 99-906).
4441-(D) Following the procurement event described in
4442-this paragraph (1) and consistent with subparagraph
4443-(B) of this paragraph (1), the Agency shall calculate
4444-the payments to be made under each contract for the
4445-next delivery year based on the market price index for
4446-that delivery year. The Agency shall publish the
4447-payment calculations no later than May 25, 2017 and
4448-every May 25 thereafter.
4449-(E) Notwithstanding the requirements of this
4450-subsection (d-5), the contracts executed under this
4451-subsection (d-5) shall provide that the zero emission
4452-facility may, as applicable, suspend or terminate
4453-
4454-
4455-performance under the contracts in the following
4456-instances:
4457-(i) A zero emission facility shall be excused
4458-from its performance under the contract for any
4459-cause beyond the control of the resource,
4460-including, but not restricted to, acts of God,
4461-flood, drought, earthquake, storm, fire,
4462-lightning, epidemic, war, riot, civil disturbance
4463-or disobedience, labor dispute, labor or material
4464-shortage, sabotage, acts of public enemy,
4465-explosions, orders, regulations or restrictions
4466-imposed by governmental, military, or lawfully
4467-established civilian authorities, which, in any of
4468-the foregoing cases, by exercise of commercially
4469-reasonable efforts the zero emission facility
4470-could not reasonably have been expected to avoid,
4471-and which, by the exercise of commercially
4472-reasonable efforts, it has been unable to
4473-overcome. In such event, the zero emission
4474-facility shall be excused from performance for the
4475-duration of the event, including, but not limited
4476-to, delivery of zero emission credits, and no
4477-payment shall be due to the zero emission facility
4478-during the duration of the event.
4479-(ii) A zero emission facility shall be
4480-permitted to terminate the contract if legislation
4481-
4482-
4483-is enacted into law by the General Assembly that
4484-imposes or authorizes a new tax, special
4485-assessment, or fee on the generation of
4486-electricity, the ownership or leasehold of a
4487-generating unit, or the privilege or occupation of
4488-such generation, ownership, or leasehold of
4489-generation units by a zero emission facility.
4490-However, the provisions of this item (ii) do not
4491-apply to any generally applicable tax, special
4492-assessment or fee, or requirements imposed by
4493-federal law.
4494-(iii) A zero emission facility shall be
4495-permitted to terminate the contract in the event
4496-that the resource requires capital expenditures in
4497-excess of $40,000,000 that were neither known nor
4498-reasonably foreseeable at the time it executed the
4499-contract and that a prudent owner or operator of
4500-such resource would not undertake.
4501-(iv) A zero emission facility shall be
4502-permitted to terminate the contract in the event
4503-the Nuclear Regulatory Commission terminates the
4504-resource's license.
4505-(F) If the zero emission facility elects to
4506-terminate a contract under subparagraph (E) of this
4507-paragraph (1), then the Commission shall reopen the
4508-docket in which the Commission approved the zero
4509-
4510-
4511-emission standard procurement plan under subparagraph
4512-(C) of this paragraph (1) and, after notice and
4513-hearing, enter an order acknowledging the contract
4514-termination election if such termination is consistent
4515-with the provisions of this subsection (d-5).
4516-(2) For purposes of this subsection (d-5), the amount
4517-paid per kilowatthour means the total amount paid for
4518-electric service expressed on a per kilowatthour basis.
4519-For purposes of this subsection (d-5), the total amount
4520-paid for electric service includes, without limitation,
4521-amounts paid for supply, transmission, distribution,
4522-surcharges, and add-on taxes.
4523-Notwithstanding the requirements of this subsection
4524-(d-5), the contracts executed under this subsection (d-5)
4525-shall provide that the total of zero emission credits
4526-procured under a procurement plan shall be subject to the
4527-limitations of this paragraph (2). For each delivery year,
4528-the contractual volume receiving payments in such year
4529-shall be reduced for all retail customers based on the
4530-amount necessary to limit the net increase that delivery
4531-year to the costs of those credits included in the amounts
4532-paid by eligible retail customers in connection with
4533-electric service to no more than 1.65% of the amount paid
4534-per kilowatthour by eligible retail customers during the
4535-year ending May 31, 2009. The result of this computation
4536-shall apply to and reduce the procurement for all retail
4537-
4538-
4539-customers, and all those customers shall pay the same
4540-single, uniform cents per kilowatthour charge under
4541-subsection (k) of Section 16-108 of the Public Utilities
4542-Act. To arrive at a maximum dollar amount of zero emission
4543-credits to be paid for the particular delivery year, the
4544-resulting per kilowatthour amount shall be applied to the
4545-actual amount of kilowatthours of electricity delivered by
4546-the electric utility in the delivery year immediately
4547-prior to the procurement, to all retail customers in its
4548-service territory. Unpaid contractual volume for any
4549-delivery year shall be paid in any subsequent delivery
4550-year in which such payments can be made without exceeding
4551-the amount specified in this paragraph (2). The
4552-calculations required by this paragraph (2) shall be made
4553-only once for each procurement plan year. Once the
4554-determination as to the amount of zero emission credits to
4555-be paid is made based on the calculations set forth in this
4556-paragraph (2), no subsequent rate impact determinations
4557-shall be made and no adjustments to those contract amounts
4558-shall be allowed. All costs incurred under those contracts
4559-and in implementing this subsection (d-5) shall be
4560-recovered by the electric utility as provided in this
4561-Section.
4562-No later than June 30, 2019, the Commission shall
4563-review the limitation on the amount of zero emission
4564-credits procured under this subsection (d-5) and report to
4565-
4566-
4567-the General Assembly its findings as to whether that
4568-limitation unduly constrains the procurement of
4569-cost-effective zero emission credits.
4570-(3) Six years after the execution of a contract under
4571-this subsection (d-5), the Agency shall determine whether
4572-the actual zero emission credit payments received by the
4573-supplier over the 6-year period exceed the Average ZEC
4574-Payment. In addition, at the end of the term of a contract
4575-executed under this subsection (d-5), or at the time, if
4576-any, a zero emission facility's contract is terminated
4577-under subparagraph (E) of paragraph (1) of this subsection
4578-(d-5), then the Agency shall determine whether the actual
4579-zero emission credit payments received by the supplier
4580-over the term of the contract exceed the Average ZEC
4581-Payment, after taking into account any amounts previously
4582-credited back to the utility under this paragraph (3). If
4583-the Agency determines that the actual zero emission credit
4584-payments received by the supplier over the relevant period
4585-exceed the Average ZEC Payment, then the supplier shall
4586-credit the difference back to the utility. The amount of
4587-the credit shall be remitted to the applicable electric
4588-utility no later than 120 days after the Agency's
4589-determination, which the utility shall reflect as a credit
4590-on its retail customer bills as soon as practicable;
4591-however, the credit remitted to the utility shall not
4592-exceed the total amount of payments received by the
4593-
4594-
4595-facility under its contract.
4596-For purposes of this Section, the Average ZEC Payment
4597-shall be calculated by multiplying the quantity of zero
4598-emission credits delivered under the contract times the
4599-average contract price. The average contract price shall
4600-be determined by subtracting the amount calculated under
4601-subparagraph (B) of this paragraph (3) from the amount
4602-calculated under subparagraph (A) of this paragraph (3),
4603-as follows:
4604-(A) The average of the Social Cost of Carbon, as
4605-defined in subparagraph (B) of paragraph (1) of this
4606-subsection (d-5), during the term of the contract.
4607-(B) The average of the market price indices, as
4608-defined in subparagraph (B) of paragraph (1) of this
4609-subsection (d-5), during the term of the contract,
4610-minus the baseline market price index, as defined in
4611-subparagraph (B) of paragraph (1) of this subsection
4612-(d-5).
4613-If the subtraction yields a negative number, then the
4614-Average ZEC Payment shall be zero.
4615-(4) Cost-effective zero emission credits procured from
4616-zero emission facilities shall satisfy the applicable
4617-definitions set forth in Section 1-10 of this Act.
4618-(5) The electric utility shall retire all zero
4619-emission credits used to comply with the requirements of
4620-this subsection (d-5).
4621-
4622-
4623-(6) Electric utilities shall be entitled to recover
4624-all of the costs associated with the procurement of zero
4625-emission credits through an automatic adjustment clause
4626-tariff in accordance with subsection (k) and (m) of
4627-Section 16-108 of the Public Utilities Act, and the
4628-contracts executed under this subsection (d-5) shall
4629-provide that the utilities' payment obligations under such
4630-contracts shall be reduced if an adjustment is required
4631-under subsection (m) of Section 16-108 of the Public
4632-Utilities Act.
4633-(7) This subsection (d-5) shall become inoperative on
4634-January 1, 2028.
4635-(d-10) Nuclear Plant Assistance; carbon mitigation
4636-credits.
4637-(1) The General Assembly finds:
4638-(A) The health, welfare, and prosperity of all
4639-Illinois citizens require that the State of Illinois act
4640-to avoid and not increase carbon emissions from electric
4641-generation sources while continuing to ensure affordable,
4642-stable, and reliable electricity to all citizens.
4643-(B) Absent immediate action by the State to preserve
4644-existing carbon-free energy resources, those resources may
4645-retire, and the electric generation needs of Illinois'
4646-retail customers may be met instead by facilities that
4647-emit significant amounts of carbon pollution and other
4648-harmful air pollutants at a high social and economic cost
4649-
4650-
4651-until Illinois is able to develop other forms of clean
4652-energy.
4653-(C) The General Assembly finds that nuclear power
4654-generation is necessary for the State's transition to 100%
4655-clean energy, and ensuring continued operation of nuclear
4656-plants advances environmental and public health interests
4657-through providing carbon-free electricity while reducing
4658-the air pollution profile of the Illinois energy
4659-generation fleet.
4660-(D) The clean energy attributes of nuclear generation
4661-facilities support the State in its efforts to achieve
4662-100% clean energy.
4663-(E) The State currently invests in various forms of
4664-clean energy, including, but not limited to, renewable
4665-energy, energy efficiency, and low-emission vehicles,
4666-among others.
4667-(F) The Environmental Protection Agency commissioned
4668-an independent audit which provided a detailed assessment
4669-of the financial condition of the Illinois nuclear fleet
4670-to evaluate its financial viability and whether the
4671-environmental benefits of such resources were at risk. The
4672-report identified the risk of losing the environmental
4673-benefits of several specific nuclear units. The report
4674-also identified that the LaSalle County Generating Station
4675-will continue to operate through 2026 and therefore is not
4676-eligible to participate in the carbon mitigation credit
4677-
4678-
4679-program.
4680-(G) Nuclear plants provide carbon-free energy, which
4681-helps to avoid many health-related negative impacts for
4682-Illinois residents.
4683-(H) The procurement of carbon mitigation credits
4684-representing the environmental benefits of carbon-free
4685-generation will further the State's efforts at achieving
4686-100% clean energy and decarbonizing the electricity sector
4687-in a safe, reliable, and affordable manner. Further, the
4688-procurement of carbon emission credits will enhance the
4689-health and welfare of Illinois residents through decreased
4690-reliance on more highly polluting generation.
4691-(I) The General Assembly therefore finds it necessary
4692-to establish carbon mitigation credits to ensure decreased
4693-reliance on more carbon-intensive energy resources, for
4694-transitioning to a fully decarbonized electricity sector,
4695-and to help ensure health and welfare of the State's
4696-residents.
4697-(2) As used in this subsection:
4698-"Baseline costs" means costs used to establish a customer
4699-protection cap that have been evaluated through an independent
4700-audit of a carbon-free energy resource conducted by the
4701-Environmental Protection Agency that evaluated projected
4702-annual costs for operation and maintenance expenses; fully
4703-allocated overhead costs, which shall be allocated using the
4704-methodology developed by the Institute for Nuclear Power
4705-
4706-
4707-Operations; fuel expenditures; nonfuel capital expenditures;
4708-spent fuel expenditures; a return on working capital; the cost
4709-of operational and market risks that could be avoided by
4710-ceasing operation; and any other costs necessary for continued
4711-operations, provided that "necessary" means, for purposes of
4712-this definition, that the costs could reasonably be avoided
4713-only by ceasing operations of the carbon-free energy resource.
4714-"Carbon mitigation credit" means a tradable credit that
4715-represents the carbon emission reduction attributes of one
4716-megawatt-hour of energy produced from a carbon-free energy
4717-resource.
4718-"Carbon-free energy resource" means a generation facility
4719-that: (1) is fueled by nuclear power; and (2) is
4720-interconnected to PJM Interconnection, LLC.
4721-(3) Procurement.
4722-(A) Beginning with the delivery year commencing on
4723-June 1, 2022, the Agency shall, for electric utilities
4724-serving at least 3,000,000 retail customers in the State,
4725-seek to procure contracts for no more than approximately
4726-54,500,000 cost-effective carbon mitigation credits from
4727-carbon-free energy resources because such credits are
4728-necessary to support current levels of carbon-free energy
4729-generation and ensure the State meets its carbon dioxide
4730-emissions reduction goals. The Agency shall not make a
4731-partial award of a contract for carbon mitigation credits
4732-covering a fractional amount of a carbon-free energy
4733-
4734-
4735-resource's projected output.
4736-(B) Each carbon-free energy resource that intends to
4737-participate in a procurement shall be required to submit
4738-to the Agency the following information for the resource
4739-on or before the date established by the Agency:
4740-(i) the in-service date and remaining useful life
4741-of the carbon-free energy resource;
4742-(ii) the amount of power generated annually for
4743-each of the past 10 years, which shall be used to
4744-determine the capability of each facility;
4745-(iii) a commitment to be reflected in any contract
4746-entered into pursuant to this subsection (d-10) to
4747-continue operating the carbon-free energy resource at
4748-a capacity factor of at least 88% annually on average
4749-for the duration of the contract or contracts executed
4750-under the procurement held under this subsection
4751-(d-10), except in an instance described in
4752-subparagraph (E) of paragraph (1) of subsection (d-5)
4753-of this Section or made impracticable as a result of
4754-compliance with law or regulation;
4755-(iv) financial need and the risk of loss of the
4756-environmental benefits of such resource, which shall
4757-include the following information:
4758-(I) the carbon-free energy resource's cost
4759-projections, expressed on a per megawatt-hour
4760-basis, over the next 5 delivery years, which shall
4761-
4762-
4763-include the following: operation and maintenance
4764-expenses; fully allocated overhead costs, which
4765-shall be allocated using the methodology developed
4766-by the Institute for Nuclear Power Operations;
4767-fuel expenditures; nonfuel capital expenditures;
4768-spent fuel expenditures; a return on working
4769-capital; the cost of operational and market risks
4770-that could be avoided by ceasing operation; and
4771-any other costs necessary for continued
4772-operations, provided that "necessary" means, for
4773-purposes of this subitem (I), that the costs could
4774-reasonably be avoided only by ceasing operations
4775-of the carbon-free energy resource; and
4776-(II) the carbon-free energy resource's revenue
4777-projections, including energy, capacity, ancillary
4778-services, any other direct State support, known or
4779-anticipated federal attribute credits, known or
4780-anticipated tax credits, and any other direct
4781-federal support.
4782-The information described in this subparagraph (B) may
4783-be submitted on a confidential basis and shall be treated
4784-and maintained by the Agency, the procurement
4785-administrator, and the Commission as confidential and
4786-proprietary and exempt from disclosure under subparagraphs
4787-(a) and (g) of paragraph (1) of Section 7 of the Freedom of
4788-Information Act. The Office of the Attorney General shall
4789-
4790-
4791-have access to, and maintain the confidentiality of, such
4792-information pursuant to Section 6.5 of the Attorney
4793-General Act.
4794-(C) The Agency shall solicit bids for the contracts
4795-described in this subsection (d-10) from carbon-free
4796-energy resources that have satisfied the requirements of
4797-subparagraph (B) of this paragraph (3). The contracts
4798-procured pursuant to a procurement event shall reflect,
4799-and be subject to, the following terms, requirements, and
4800-limitations:
4801-(i) Contracts are for delivery of carbon
4802-mitigation credits, and are not energy or capacity
4803-sales contracts requiring physical delivery. Pursuant
4804-to item (iii), contract payments shall fully deduct
4805-the value of any monetized federal production tax
4806-credits, credits issued pursuant to a federal clean
4807-energy standard, and other federal credits if
4808-applicable.
4809-(ii) Contracts for carbon mitigation credits shall
4810-commence with the delivery year beginning on June 1,
4811-2022 and shall be for a term of 5 delivery years
4812-concluding on May 31, 2027.
4813-(iii) The price per carbon mitigation credit to be
4814-paid under a contract for a given delivery year shall
4815-be equal to an accepted bid price less the sum of:
4816-(I) one of the following energy price indices,
4817-
4818-
4819-selected by the bidder at the time of the bid for
4820-the term of the contract:
4821-(aa) the weighted-average hourly day-ahead
4822-price for the applicable delivery year at the
4823-busbar of all resources procured pursuant to
4824-this subsection (d-10), weighted by actual
4825-production from the resources; or
4826-(bb) the projected energy price for the
4827-PJM Interconnection, LLC Northern Illinois Hub
4828-for the applicable delivery year determined
4829-according to subitem (aa) of item (iii) of
4830-subparagraph (B) of paragraph (1) of
4831-subsection (d-5).
4832-(II) the Base Residual Auction Capacity Price
4833-for the ComEd zone as determined by PJM
4834-Interconnection, LLC, divided by 24 hours per day,
4835-for the applicable delivery year for the first 3
4836-delivery years, and then any subsequent delivery
4837-years unless the PJM Interconnection, LLC applies
4838-the Minimum Offer Price Rule to participating
4839-carbon-free energy resources because they supply
4840-carbon mitigation credits pursuant to this Section
4841-at which time, upon notice by the carbon-free
4842-energy resource to the Commission and subject to
4843-the Commission's confirmation, the value under
4844-this subitem shall be zero, as further described
4845-
4846-
4847-in the carbon mitigation credit procurement plan;
4848-and
4849-(III) any value of monetized federal tax
4850-credits, direct payments, or similar subsidy
4851-provided to the carbon-free energy resource from
4852-any unit of government that is not already
4853-reflected in energy prices.
4854-If the price-per-megawatt-hour calculation
4855-performed under item (iii) of this subparagraph (C)
4856-for a given delivery year results in a net positive
4857-value, then the electric utility counterparty to the
4858-contract shall multiply such net value by the
4859-applicable contract quantity and remit the amount to
4860-the supplier.
4861-To protect retail customers from retail rate
4862-impacts that may arise upon the initiation of carbon
4863-policy changes, if the price-per-megawatt-hour
4864-calculation performed under item (iii) of this
4865-subparagraph (C) for a given delivery year results in
4866-a net negative value, then the supplier counterparty
4867-to the contract shall multiply such net value by the
4868-applicable contract quantity and remit such amount to
4869-the electric utility counterparty. The electric
4870-utility shall reflect such amounts remitted by
4871-suppliers as a credit on its retail customer bills as
4872-soon as practicable.
4873-
4874-
4875-(iv) To ensure that retail customers in Northern
4876-Illinois do not pay more for carbon mitigation credits
4877-than the value such credits provide, and
4878-notwithstanding the provisions of this subsection
4879-(d-10), the Agency shall not accept bids for contracts
4880-that exceed a customer protection cap equal to the
4881-baseline costs of carbon-free energy resources.
4882-The baseline costs for the applicable year shall
4883-be the following:
4884-(I) For the delivery year beginning June 1,
4885-2022, the baseline costs shall be an amount equal
4886-to $30.30 per megawatt-hour.
4887-(II) For the delivery year beginning June 1,
4888-2023, the baseline costs shall be an amount equal
4889-to $32.50 per megawatt-hour.
4890-(III) For the delivery year beginning June 1,
4891-2024, the baseline costs shall be an amount equal
4892-to $33.43 per megawatt-hour.
4893-(IV) For the delivery year beginning June 1,
4894-2025, the baseline costs shall be an amount equal
4895-to $33.50 per megawatt-hour.
4896-(V) For the delivery year beginning June 1,
4897-2026, the baseline costs shall be an amount equal
4898-to $34.50 per megawatt-hour.
4899-An Environmental Protection Agency consultant
4900-forecast, included in a report issued April 14, 2021,
4901-
4902-
4903-projects that a carbon-free energy resource has the
4904-opportunity to earn on average approximately $30.28
4905-per megawatt-hour, for the sale of energy and capacity
4906-during the time period between 2022 and 2027.
4907-Therefore, the sale of carbon mitigation credits
4908-provides the opportunity to receive an additional
4909-amount per megawatt-hour in addition to the projected
4910-prices for energy and capacity.
4911-Although actual energy and capacity prices may
4912-vary from year-to-year, the General Assembly finds
4913-that this customer protection cap will help ensure
4914-that the cost of carbon mitigation credits will be
4915-less than its value, based upon the social cost of
4916-carbon identified in the Technical Support Document
4917-issued in February 2021 by the U.S. Interagency
4918-Working Group on Social Cost of Greenhouse Gases and
4919-the PJM Interconnection, LLC carbon dioxide marginal
4920-emission rate for 2020, and that a carbon-free energy
4921-resource receiving payment for carbon mitigation
4922-credits receives no more than necessary to keep those
4923-units in operation.
4924-(D) No later than 7 days after the effective date of
4925-this amendatory Act of the 102nd General Assembly, the
4926-Agency shall publish its proposed carbon mitigation credit
4927-procurement plan. The Plan shall provide that winning bids
4928-shall be selected by taking into consideration which
4929-
4930-
4931-resources best match public interest criteria that
4932-include, but are not limited to, minimizing carbon dioxide
4933-emissions that result from electricity consumed in
4934-Illinois and minimizing sulfur dioxide, nitrogen oxide,
4935-and particulate matter emissions that adversely affect the
4936-citizens of this State. The selection of winning bids
4937-shall also take into account the incremental environmental
4938-benefits resulting from the procurement or procurements,
4939-such as any existing environmental benefits that are
4940-preserved by a procurement held under this subsection
4941-(d-10) and would cease to exist if the procurement were
4942-not held, including the preservation of carbon-free energy
4943-resources. For those bidders having the same public
4944-interest criteria score, the relative ranking of such
4945-bidders shall be determined by price. The Plan shall
4946-describe in detail how each public interest factor shall
4947-be considered and weighted in the bid selection process to
4948-ensure that the public interest criteria are applied to
4949-the procurement. The Plan shall, to the extent practical
4950-and permissible by federal law, ensure that successful
4951-bidders make commercially reasonable efforts to apply for
4952-federal tax credits, direct payments, or similar subsidy
4953-programs that support carbon-free generation and for which
4954-the successful bidder is eligible. Upon publishing of the
4955-carbon mitigation credit procurement plan, copies of the
4956-plan shall be posted and made publicly available on the
4957-
4958-
4959-Agency's website. All interested parties shall have 7 days
4960-following the date of posting to provide comment to the
4961-Agency on the plan. All comments shall be posted to the
4962-Agency's website. Following the end of the comment period,
4963-but no more than 19 days later than the effective date of
4964-this amendatory Act of the 102nd General Assembly, the
4965-Agency shall revise the plan as necessary based on the
4966-comments received and file its carbon mitigation credit
4967-procurement plan with the Commission.
4968-(E) If the Commission determines that the plan is
4969-likely to result in the procurement of cost-effective
4970-carbon mitigation credits, then the Commission shall,
4971-after notice and hearing and opportunity for comment, but
4972-no later than 42 days after the Agency filed the plan,
4973-approve the plan or approve it with modification. For
4974-purposes of this subsection (d-10), "cost-effective" means
4975-carbon mitigation credits that are procured from
4976-carbon-free energy resources at prices that are within the
4977-limits specified in this paragraph (3). As part of the
4978-Commission's review and acceptance or rejection of the
4979-procurement results, the Commission shall, in its public
4980-notice of successful bidders:
4981-(i) identify how the selected carbon-free energy
4982-resources satisfy the public interest criteria
4983-described in this paragraph (3) of minimizing carbon
4984-dioxide emissions that result from electricity
4985-
4986-
4987-consumed in Illinois and minimizing sulfur dioxide,
4988-nitrogen oxide, and particulate matter emissions that
4989-adversely affect the citizens of this State;
4990-(ii) specifically address how the selection of
4991-carbon-free energy resources takes into account the
4992-incremental environmental benefits resulting from the
4993-procurement, including any existing environmental
4994-benefits that are preserved by the procurements held
4995-under this amendatory Act of the 102nd General
4996-Assembly and would have ceased to exist if the
4997-procurements had not been held, such as the
4998-preservation of carbon-free energy resources;
4999-(iii) quantify the environmental benefit of
5000-preserving the carbon-free energy resources procured
5001-pursuant to this subsection (d-10), including the
5002-following:
5003-(I) an assessment value of avoided greenhouse
5004-gas emissions measured as the product of the
5005-carbon-free energy resources' output over the
5006-contract term, using generally accepted
5007-methodologies for the valuation of avoided
5008-emissions; and
5009-(II) an assessment of costs of replacement
5010-with other carbon-free energy resources and
5011-renewable energy resources, including wind and
5012-photovoltaic generation, based upon an assessment
5013-
5014-
5015-of the prices paid for renewable energy credits
5016-through programs and procurements conducted
5017-pursuant to subsection (c) of Section 1-75 of this
5018-Act, and the additional storage necessary to
5019-produce the same or similar capability of matching
5020-customer usage patterns.
5021-(F) The procurements described in this paragraph (3),
5022-including, but not limited to, the execution of all
5023-contracts procured, shall be completed no later than
5024-December 3, 2021. The procurement and plan approval
5025-processes required by this paragraph (3) shall be
5026-conducted in conjunction with the procurement and plan
5027-approval processes required by Section 16-111.5 of the
5028-Public Utilities Act, to the extent practicable. However,
5029-the Agency and Commission may, as appropriate, modify the
5030-various dates and timelines under this subparagraph and
5031-subparagraphs (D) and (E) of this paragraph (3) to meet
5032-the December 3, 2021 contract execution deadline.
5033-Following the completion of such procurements, and
5034-consistent with this paragraph (3), the Agency shall
5035-calculate the payments to be made under each contract in a
5036-timely fashion.
5037-(F-1) Costs incurred by the electric utility pursuant
5038-to a contract authorized by this subsection (d-10) shall
5039-be deemed prudently incurred and reasonable in amount, and
5040-the electric utility shall be entitled to full cost
5041-
5042-
5043-recovery pursuant to a tariff or tariffs filed with the
5044-Commission.
5045-(G) The counterparty electric utility shall retire all
5046-carbon mitigation credits used to comply with the
5047-requirements of this subsection (d-10).
5048-(H) If a carbon-free energy resource is sold to
5049-another owner, the rights, obligations, and commitments
5050-under this subsection (d-10) shall continue to the
5051-subsequent owner.
5052-(I) This subsection (d-10) shall become inoperative on
5053-January 1, 2028.
5054-(e) The draft procurement plans are subject to public
5055-comment, as required by Section 16-111.5 of the Public
5056-Utilities Act.
5057-(f) The Agency shall submit the final procurement plan to
5058-the Commission. The Agency shall revise a procurement plan if
5059-the Commission determines that it does not meet the standards
5060-set forth in Section 16-111.5 of the Public Utilities Act.
5061-(g) The Agency shall assess fees to each affected utility
5062-to recover the costs incurred in preparation of the annual
5063-procurement plan for the utility.
5064-(h) The Agency shall assess fees to each bidder to recover
5065-the costs incurred in connection with a competitive
5066-procurement process.
5067-(i) A renewable energy credit, carbon emission credit,
5068-zero emission credit, or carbon mitigation credit can only be
5069-
5070-
5071-used once to comply with a single portfolio or other standard
5072-as set forth in subsection (c), subsection (d), or subsection
5073-(d-5) of this Section, respectively. A renewable energy
5074-credit, carbon emission credit, zero emission credit, or
5075-carbon mitigation credit cannot be used to satisfy the
5076-requirements of more than one standard. If more than one type
5077-of credit is issued for the same megawatt hour of energy, only
5078-one credit can be used to satisfy the requirements of a single
5079-standard. After such use, the credit must be retired together
5080-with any other credits issued for the same megawatt hour of
5081-energy.
5082-(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
5083-102-662, eff. 9-15-21.)
5084-(Text of Section after amendment by P.A. 103-380)
5085-Sec. 1-75. Planning and Procurement Bureau. The Planning
5086-and Procurement Bureau has the following duties and
5087-responsibilities:
5088-(a) The Planning and Procurement Bureau shall each year,
5089-beginning in 2008, develop procurement plans and conduct
5090-competitive procurement processes in accordance with the
5091-requirements of Section 16-111.5 of the Public Utilities Act
5092-for the eligible retail customers of electric utilities that
5093-on December 31, 2005 provided electric service to at least
5094-100,000 customers in Illinois. Beginning with the delivery
5095-year commencing on June 1, 2017, the Planning and Procurement
5096-
5097-
5098-Bureau shall develop plans and processes for the procurement
5099-of zero emission credits from zero emission facilities in
5100-accordance with the requirements of subsection (d-5) of this
5101-Section. Beginning on the effective date of this amendatory
5102-Act of the 102nd General Assembly, the Planning and
5103-Procurement Bureau shall develop plans and processes for the
5104-procurement of carbon mitigation credits from carbon-free
5105-energy resources in accordance with the requirements of
5106-subsection (d-10) of this Section. The Planning and
5107-Procurement Bureau shall also develop procurement plans and
5108-conduct competitive procurement processes in accordance with
5109-the requirements of Section 16-111.5 of the Public Utilities
5110-Act for the eligible retail customers of small
5111-multi-jurisdictional electric utilities that (i) on December
5112-31, 2005 served less than 100,000 customers in Illinois and
5113-(ii) request a procurement plan for their Illinois
5114-jurisdictional load. This Section shall not apply to a small
5115-multi-jurisdictional utility until such time as a small
5116-multi-jurisdictional utility requests the Agency to prepare a
5117-procurement plan for their Illinois jurisdictional load. For
5118-the purposes of this Section, the term "eligible retail
5119-customers" has the same definition as found in Section
5120-16-111.5(a) of the Public Utilities Act.
5121-Beginning with the plan or plans to be implemented in the
5122-2017 delivery year, the Agency shall no longer include the
5123-procurement of renewable energy resources in the annual
5124-
5125-
5126-procurement plans required by this subsection (a), except as
5127-provided in subsection (q) of Section 16-111.5 of the Public
5128-Utilities Act, and shall instead develop a long-term renewable
5129-resources procurement plan in accordance with subsection (c)
5130-of this Section and Section 16-111.5 of the Public Utilities
5131-Act.
5132-In accordance with subsection (c-5) of this Section, the
5133-Planning and Procurement Bureau shall oversee the procurement
5134-by electric utilities that served more than 300,000 retail
5135-customers in this State as of January 1, 2019 of renewable
5136-energy credits from new utility-scale solar projects to be
5137-installed, along with energy storage facilities, at or
5138-adjacent to the sites of electric generating facilities that,
5139-as of January 1, 2016, burned coal as their primary fuel
5140-source.
5141-(1) The Agency shall each year, beginning in 2008, as
5142-needed, issue a request for qualifications for experts or
5143-expert consulting firms to develop the procurement plans
5144-in accordance with Section 16-111.5 of the Public
5145-Utilities Act. In order to qualify an expert or expert
5146-consulting firm must have:
5147-(A) direct previous experience assembling
5148-large-scale power supply plans or portfolios for
5149-end-use customers;
5150-(B) an advanced degree in economics, mathematics,
5151-engineering, risk management, or a related area of
5152-
5153-
5154-study;
5155-(C) 10 years of experience in the electricity
5156-sector, including managing supply risk;
5157-(D) expertise in wholesale electricity market
5158-rules, including those established by the Federal
5159-Energy Regulatory Commission and regional transmission
5160-organizations;
5161-(E) expertise in credit protocols and familiarity
5162-with contract protocols;
5163-(F) adequate resources to perform and fulfill the
5164-required functions and responsibilities; and
5165-(G) the absence of a conflict of interest and
5166-inappropriate bias for or against potential bidders or
5167-the affected electric utilities.
5168-(2) The Agency shall each year, as needed, issue a
5169-request for qualifications for a procurement administrator
5170-to conduct the competitive procurement processes in
5171-accordance with Section 16-111.5 of the Public Utilities
5172-Act. In order to qualify an expert or expert consulting
5173-firm must have:
5174-(A) direct previous experience administering a
5175-large-scale competitive procurement process;
5176-(B) an advanced degree in economics, mathematics,
5177-engineering, or a related area of study;
5178-(C) 10 years of experience in the electricity
5179-sector, including risk management experience;
5180-
5181-
5182-(D) expertise in wholesale electricity market
5183-rules, including those established by the Federal
5184-Energy Regulatory Commission and regional transmission
5185-organizations;
5186-(E) expertise in credit and contract protocols;
5187-(F) adequate resources to perform and fulfill the
5188-required functions and responsibilities; and
5189-(G) the absence of a conflict of interest and
5190-inappropriate bias for or against potential bidders or
5191-the affected electric utilities.
5192-(3) The Agency shall provide affected utilities and
5193-other interested parties with the lists of qualified
5194-experts or expert consulting firms identified through the
5195-request for qualifications processes that are under
5196-consideration to develop the procurement plans and to
5197-serve as the procurement administrator. The Agency shall
5198-also provide each qualified expert's or expert consulting
5199-firm's response to the request for qualifications. All
5200-information provided under this subparagraph shall also be
5201-provided to the Commission. The Agency may provide by rule
5202-for fees associated with supplying the information to
5203-utilities and other interested parties. These parties
5204-shall, within 5 business days, notify the Agency in
5205-writing if they object to any experts or expert consulting
5206-firms on the lists. Objections shall be based on:
5207-(A) failure to satisfy qualification criteria;
5208-
5209-
5210-(B) identification of a conflict of interest; or
5211-(C) evidence of inappropriate bias for or against
5212-potential bidders or the affected utilities.
5213-The Agency shall remove experts or expert consulting
5214-firms from the lists within 10 days if there is a
5215-reasonable basis for an objection and provide the updated
5216-lists to the affected utilities and other interested
5217-parties. If the Agency fails to remove an expert or expert
5218-consulting firm from a list, an objecting party may seek
5219-review by the Commission within 5 days thereafter by
5220-filing a petition, and the Commission shall render a
5221-ruling on the petition within 10 days. There is no right of
5222-appeal of the Commission's ruling.
5223-(4) The Agency shall issue requests for proposals to
5224-the qualified experts or expert consulting firms to
5225-develop a procurement plan for the affected utilities and
5226-to serve as procurement administrator.
5227-(5) The Agency shall select an expert or expert
5228-consulting firm to develop procurement plans based on the
5229-proposals submitted and shall award contracts of up to 5
5230-years to those selected.
5231-(6) The Agency shall select an expert or expert
5232-consulting firm, with approval of the Commission, to serve
5233-as procurement administrator based on the proposals
5234-submitted. If the Commission rejects, within 5 days, the
5235-Agency's selection, the Agency shall submit another
5236-
5237-
5238-recommendation within 3 days based on the proposals
5239-submitted. The Agency shall award a 5-year contract to the
5240-expert or expert consulting firm so selected with
5241-Commission approval.
5242-(b) The experts or expert consulting firms retained by the
5243-Agency shall, as appropriate, prepare procurement plans, and
5244-conduct a competitive procurement process as prescribed in
5245-Section 16-111.5 of the Public Utilities Act, to ensure
5246-adequate, reliable, affordable, efficient, and environmentally
5247-sustainable electric service at the lowest total cost over
5248-time, taking into account any benefits of price stability, for
5249-eligible retail customers of electric utilities that on
5250-December 31, 2005 provided electric service to at least
5251-100,000 customers in the State of Illinois, and for eligible
5252-Illinois retail customers of small multi-jurisdictional
5253-electric utilities that (i) on December 31, 2005 served less
5254-than 100,000 customers in Illinois and (ii) request a
5255-procurement plan for their Illinois jurisdictional load.
5256-(c) Renewable portfolio standard.
5257-(1)(A) The Agency shall develop a long-term renewable
5258-resources procurement plan that shall include procurement
5259-programs and competitive procurement events necessary to
5260-meet the goals set forth in this subsection (c). The
5261-initial long-term renewable resources procurement plan
5262-shall be released for comment no later than 160 days after
5263-June 1, 2017 (the effective date of Public Act 99-906).
5264-
5265-
5266-The Agency shall review, and may revise on an expedited
5267-basis, the long-term renewable resources procurement plan
5268-at least every 2 years, which shall be conducted in
5269-conjunction with the procurement plan under Section
5270-16-111.5 of the Public Utilities Act to the extent
5271-practicable to minimize administrative expense. No later
5272-than 120 days after the effective date of this amendatory
5273-Act of the 103rd General Assembly, the Agency shall
5274-release for comment a revision to the long-term renewable
5275-resources procurement plan, updating elements of the most
5276-recently approved plan as needed to comply with this
5277-amendatory Act of the 103rd General Assembly, and any
5278-long-term renewable resources procurement plan update
5279-published by the Agency but not yet approved by the
5280-Illinois Commerce Commission shall be withdrawn. The
5281-long-term renewable resources procurement plans shall be
5282-subject to review and approval by the Commission under
5283-Section 16-111.5 of the Public Utilities Act.
5284-(B) Subject to subparagraph (F) of this paragraph (1),
5285-the long-term renewable resources procurement plan shall
5286-attempt to meet the goals for procurement of renewable
5287-energy credits at levels of at least the following overall
5288-percentages: 13% by the 2017 delivery year; increasing by
5289-at least 1.5% each delivery year thereafter to at least
5290-25% by the 2025 delivery year; increasing by at least 3%
5291-each delivery year thereafter to at least 40% by the 2030
5292-
5293-
5294-delivery year, and continuing at no less than 40% for each
5295-delivery year thereafter. The Agency shall attempt to
5296-procure 50% by delivery year 2040. The Agency shall
5297-determine the annual increase between delivery year 2030
5298-and delivery year 2040, if any, taking into account energy
5299-demand, other energy resources, and other public policy
5300-goals. In the event of a conflict between these goals and
5301-the new wind, new photovoltaic, and hydropower procurement
5302-requirements described in items (i) through (iii) of
5303-subparagraph (C) of this paragraph (1), the long-term plan
5304-shall prioritize compliance with the new wind, new
5305-photovoltaic, and hydropower procurement requirements
5306-described in items (i) through (iii) of subparagraph (C)
5307-of this paragraph (1) over the annual percentage targets
5308-described in this subparagraph (B). The Agency shall not
5309-comply with the annual percentage targets described in
5310-this subparagraph (B) by procuring renewable energy
5311-credits that are unlikely to lead to the development of
5312-new renewable resources or new, modernized, or retooled
5313-hydropower facilities.
5314-For the delivery year beginning June 1, 2017, the
5315-procurement plan shall attempt to include, subject to the
5316-prioritization outlined in this subparagraph (B),
5317-cost-effective renewable energy resources equal to at
5318-least 13% of each utility's load for eligible retail
5319-customers and 13% of the applicable portion of each
5320-
5321-
5322-utility's load for retail customers who are not eligible
5323-retail customers, which applicable portion shall equal 50%
5324-of the utility's load for retail customers who are not
5325-eligible retail customers on February 28, 2017.
5326-For the delivery year beginning June 1, 2018, the
5327-procurement plan shall attempt to include, subject to the
5328-prioritization outlined in this subparagraph (B),
5329-cost-effective renewable energy resources equal to at
5330-least 14.5% of each utility's load for eligible retail
5331-customers and 14.5% of the applicable portion of each
5332-utility's load for retail customers who are not eligible
5333-retail customers, which applicable portion shall equal 75%
5334-of the utility's load for retail customers who are not
5335-eligible retail customers on February 28, 2017.
5336-For the delivery year beginning June 1, 2019, and for
5337-each year thereafter, the procurement plans shall attempt
5338-to include, subject to the prioritization outlined in this
5339-subparagraph (B), cost-effective renewable energy
5340-resources equal to a minimum percentage of each utility's
5341-load for all retail customers as follows: 16% by June 1,
5342-2019; increasing by 1.5% each year thereafter to 25% by
5343-June 1, 2025; and 25% by June 1, 2026; increasing by at
5344-least 3% each delivery year thereafter to at least 40% by
5345-the 2030 delivery year, and continuing at no less than 40%
5346-for each delivery year thereafter. The Agency shall
5347-attempt to procure 50% by delivery year 2040. The Agency
5348-
5349-
5350-shall determine the annual increase between delivery year
5351-2030 and delivery year 2040, if any, taking into account
5352-energy demand, other energy resources, and other public
5353-policy goals.
5354-For each delivery year, the Agency shall first
5355-recognize each utility's obligations for that delivery
5356-year under existing contracts. Any renewable energy
5357-credits under existing contracts, including renewable
5358-energy credits as part of renewable energy resources,
5359-shall be used to meet the goals set forth in this
5360-subsection (c) for the delivery year.
5361-(C) The long-term renewable resources procurement plan
5362-described in subparagraph (A) of this paragraph (1) shall
5363-include the procurement of renewable energy credits from
5364-new projects pursuant to the following terms:
5365-(i) At least 10,000,000 renewable energy credits
5366-delivered annually by the end of the 2021 delivery
5367-year, and increasing ratably to reach 45,000,000
5368-renewable energy credits delivered annually from new
5369-wind and solar projects by the end of delivery year
5370-2030 such that the goals in subparagraph (B) of this
5371-paragraph (1) are met entirely by procurements of
5372-renewable energy credits from new wind and
5373-photovoltaic projects. Of that amount, to the extent
5374-possible, the Agency shall procure 45% from wind and
5375-hydropower projects and 55% from photovoltaic
5376-
5377-
5378-projects. Of the amount to be procured from
5379-photovoltaic projects, the Agency shall procure: at
5380-least 50% from solar photovoltaic projects using the
5381-program outlined in subparagraph (K) of this paragraph
5382-(1) from distributed renewable energy generation
5383-devices or community renewable generation projects; at
5384-least 47% from utility-scale solar projects; at least
5385-3% from brownfield site photovoltaic projects that are
5386-not community renewable generation projects.
5387-In developing the long-term renewable resources
5388-procurement plan, the Agency shall consider other
5389-approaches, in addition to competitive procurements,
5390-that can be used to procure renewable energy credits
5391-from brownfield site photovoltaic projects and thereby
5392-help return blighted or contaminated land to
5393-productive use while enhancing public health and the
5394-well-being of Illinois residents, including those in
5395-environmental justice communities, as defined using
5396-existing methodologies and findings used by the Agency
5397-and its Administrator in its Illinois Solar for All
5398-Program. The Agency shall also consider other
5399-approaches, in addition to competitive procurements,
5400-to procure renewable energy credits from new and
5401-existing hydropower facilities to support the
5402-development and maintenance of these facilities. The
5403-Agency shall explore options to convert existing dams
5404-
5405-
5406-but shall not consider approaches to develop new dams
5407-where they do not already exist.
5408-(ii) In any given delivery year, if forecasted
5409-expenses are less than the maximum budget available
5410-under subparagraph (E) of this paragraph (1), the
5411-Agency shall continue to procure new renewable energy
5412-credits until that budget is exhausted in the manner
5413-outlined in item (i) of this subparagraph (C).
5414-(iii) For purposes of this Section:
5415-"New wind projects" means wind renewable energy
5416-facilities that are energized after June 1, 2017 for
5417-the delivery year commencing June 1, 2017.
5418-"New photovoltaic projects" means photovoltaic
5419-renewable energy facilities that are energized after
5420-June 1, 2017. Photovoltaic projects developed under
5421-Section 1-56 of this Act shall not apply towards the
5422-new photovoltaic project requirements in this
5423-subparagraph (C).
5424-For purposes of calculating whether the Agency has
5425-procured enough new wind and solar renewable energy
5426-credits required by this subparagraph (C), renewable
5427-energy facilities that have a multi-year renewable
5428-energy credit delivery contract with the utility
5429-through at least delivery year 2030 shall be
5430-considered new, however no renewable energy credits
5431-from contracts entered into before June 1, 2021 shall
5432-
5433-
5434-be used to calculate whether the Agency has procured
5435-the correct proportion of new wind and new solar
5436-contracts described in this subparagraph (C) for
5437-delivery year 2021 and thereafter.
5438-(D) Renewable energy credits shall be cost effective.
5439-For purposes of this subsection (c), "cost effective"
5440-means that the costs of procuring renewable energy
5441-resources do not cause the limit stated in subparagraph
5442-(E) of this paragraph (1) to be exceeded and, for
5443-renewable energy credits procured through a competitive
5444-procurement event, do not exceed benchmarks based on
5445-market prices for like products in the region. For
5446-purposes of this subsection (c), "like products" means
5447-contracts for renewable energy credits from the same or
5448-substantially similar technology, same or substantially
5449-similar vintage (new or existing), the same or
5450-substantially similar quantity, and the same or
5451-substantially similar contract length and structure.
5452-Benchmarks shall reflect development, financing, or
5453-related costs resulting from requirements imposed through
5454-other provisions of State law, including, but not limited
5455-to, requirements in subparagraphs (P) and (Q) of this
5456-paragraph (1) and the Renewable Energy Facilities
5457-Agricultural Impact Mitigation Act. Confidential
5458-benchmarks shall be developed by the procurement
5459-administrator, in consultation with the Commission staff,
5460-
5461-
5462-Agency staff, and the procurement monitor and shall be
5463-subject to Commission review and approval. If price
5464-benchmarks for like products in the region are not
5465-available, the procurement administrator shall establish
5466-price benchmarks based on publicly available data on
5467-regional technology costs and expected current and future
5468-regional energy prices. The benchmarks in this Section
5469-shall not be used to curtail or otherwise reduce
5470-contractual obligations entered into by or through the
5471-Agency prior to June 1, 2017 (the effective date of Public
5472-Act 99-906).
5473-(E) For purposes of this subsection (c), the required
5474-procurement of cost-effective renewable energy resources
5475-for a particular year commencing prior to June 1, 2017
5476-shall be measured as a percentage of the actual amount of
5477-electricity (megawatt-hours) supplied by the electric
5478-utility to eligible retail customers in the delivery year
5479-ending immediately prior to the procurement, and, for
5480-delivery years commencing on and after June 1, 2017, the
5481-required procurement of cost-effective renewable energy
5482-resources for a particular year shall be measured as a
5483-percentage of the actual amount of electricity
5484-(megawatt-hours) delivered by the electric utility in the
5485-delivery year ending immediately prior to the procurement,
5486-to all retail customers in its service territory. For
5487-purposes of this subsection (c), the amount paid per
5488-
5489-
5490-kilowatthour means the total amount paid for electric
5491-service expressed on a per kilowatthour basis. For
5492-purposes of this subsection (c), the total amount paid for
5493-electric service includes without limitation amounts paid
5494-for supply, transmission, capacity, distribution,
5495-surcharges, and add-on taxes.
5496-Notwithstanding the requirements of this subsection
5497-(c), the total of renewable energy resources procured
5498-under the procurement plan for any single year shall be
5499-subject to the limitations of this subparagraph (E). Such
5500-procurement shall be reduced for all retail customers
5501-based on the amount necessary to limit the annual
5502-estimated average net increase due to the costs of these
5503-resources included in the amounts paid by eligible retail
5504-customers in connection with electric service to no more
5505-than 4.25% of the amount paid per kilowatthour by those
5506-customers during the year ending May 31, 2009. To arrive
5507-at a maximum dollar amount of renewable energy resources
5508-to be procured for the particular delivery year, the
5509-resulting per kilowatthour amount shall be applied to the
5510-actual amount of kilowatthours of electricity delivered,
5511-or applicable portion of such amount as specified in
5512-paragraph (1) of this subsection (c), as applicable, by
5513-the electric utility in the delivery year immediately
5514-prior to the procurement to all retail customers in its
5515-service territory. The calculations required by this
5516-
5517-
5518-subparagraph (E) shall be made only once for each delivery
5519-year at the time that the renewable energy resources are
5520-procured. Once the determination as to the amount of
5521-renewable energy resources to procure is made based on the
5522-calculations set forth in this subparagraph (E) and the
5523-contracts procuring those amounts are executed, no
5524-subsequent rate impact determinations shall be made and no
5525-adjustments to those contract amounts shall be allowed.
5526-All costs incurred under such contracts shall be fully
5527-recoverable by the electric utility as provided in this
5528-Section.
5529-(F) If the limitation on the amount of renewable
5530-energy resources procured in subparagraph (E) of this
5531-paragraph (1) prevents the Agency from meeting all of the
5532-goals in this subsection (c), the Agency's long-term plan
5533-shall prioritize compliance with the requirements of this
5534-subsection (c) regarding renewable energy credits in the
5535-following order:
5536-(i) renewable energy credits under existing
5537-contractual obligations as of June 1, 2021;
5538-(i-5) funding for the Illinois Solar for All
5539-Program, as described in subparagraph (O) of this
5540-paragraph (1);
5541-(ii) renewable energy credits necessary to comply
5542-with the new wind and new photovoltaic procurement
5543-requirements described in items (i) through (iii) of
5544-
5545-
5546-subparagraph (C) of this paragraph (1); and
5547-(iii) renewable energy credits necessary to meet
5548-the remaining requirements of this subsection (c).
5549-(G) The following provisions shall apply to the
5550-Agency's procurement of renewable energy credits under
5551-this subsection (c):
5552-(i) Notwithstanding whether a long-term renewable
5553-resources procurement plan has been approved, the
5554-Agency shall conduct an initial forward procurement
5555-for renewable energy credits from new utility-scale
5556-wind projects within 160 days after June 1, 2017 (the
5557-effective date of Public Act 99-906). For the purposes
5558-of this initial forward procurement, the Agency shall
5559-solicit 15-year contracts for delivery of 1,000,000
5560-renewable energy credits delivered annually from new
5561-utility-scale wind projects to begin delivery on June
5562-1, 2019, if available, but not later than June 1, 2021,
5563-unless the project has delays in the establishment of
5564-an operating interconnection with the applicable
5565-transmission or distribution system as a result of the
5566-actions or inactions of the transmission or
5567-distribution provider, or other causes for force
5568-majeure as outlined in the procurement contract, in
5569-which case, not later than June 1, 2022. Payments to
5570-suppliers of renewable energy credits shall commence
5571-upon delivery. Renewable energy credits procured under
5572-
5573-
5574-this initial procurement shall be included in the
5575-Agency's long-term plan and shall apply to all
5576-renewable energy goals in this subsection (c).
5577-(ii) Notwithstanding whether a long-term renewable
5578-resources procurement plan has been approved, the
5579-Agency shall conduct an initial forward procurement
5580-for renewable energy credits from new utility-scale
5581-solar projects and brownfield site photovoltaic
5582-projects within one year after June 1, 2017 (the
5583-effective date of Public Act 99-906). For the purposes
5584-of this initial forward procurement, the Agency shall
5585-solicit 15-year contracts for delivery of 1,000,000
5586-renewable energy credits delivered annually from new
5587-utility-scale solar projects and brownfield site
5588-photovoltaic projects to begin delivery on June 1,
5589-2019, if available, but not later than June 1, 2021,
5590-unless the project has delays in the establishment of
5591-an operating interconnection with the applicable
5592-transmission or distribution system as a result of the
5593-actions or inactions of the transmission or
5594-distribution provider, or other causes for force
5595-majeure as outlined in the procurement contract, in
5596-which case, not later than June 1, 2022. The Agency may
5597-structure this initial procurement in one or more
5598-discrete procurement events. Payments to suppliers of
5599-renewable energy credits shall commence upon delivery.
5600-
5601-
5602-Renewable energy credits procured under this initial
5603-procurement shall be included in the Agency's
5604-long-term plan and shall apply to all renewable energy
5605-goals in this subsection (c).
5606-(iii) Notwithstanding whether the Commission has
5607-approved the periodic long-term renewable resources
5608-procurement plan revision described in Section
5609-16-111.5 of the Public Utilities Act, the Agency shall
5610-conduct at least one subsequent forward procurement
5611-for renewable energy credits from new utility-scale
5612-wind projects, new utility-scale solar projects, and
5613-new brownfield site photovoltaic projects within 240
5614-days after the effective date of this amendatory Act
5615-of the 102nd General Assembly in quantities necessary
5616-to meet the requirements of subparagraph (C) of this
5617-paragraph (1) through the delivery year beginning June
5618-1, 2021.
5619-(iv) Notwithstanding whether the Commission has
5620-approved the periodic long-term renewable resources
5621-procurement plan revision described in Section
5622-16-111.5 of the Public Utilities Act, the Agency shall
5623-open capacity for each category in the Adjustable
5624-Block program within 90 days after the effective date
5625-of this amendatory Act of the 102nd General Assembly
5626-manner:
5627-(1) The Agency shall open the first block of
5628-
5629-
5630-annual capacity for the category described in item
5631-(i) of subparagraph (K) of this paragraph (1). The
5632-first block of annual capacity for item (i) shall
5633-be for at least 75 megawatts of total nameplate
5634-capacity. The price of the renewable energy credit
5635-for this block of capacity shall be 4% less than
5636-the price of the last open block in this category.
5637-Projects on a waitlist shall be awarded contracts
5638-first in the order in which they appear on the
5639-waitlist. Notwithstanding anything to the
5640-contrary, for those renewable energy credits that
5641-qualify and are procured under this subitem (1) of
5642-this item (iv), the renewable energy credit
5643-delivery contract value shall be paid in full,
5644-based on the estimated generation during the first
5645-15 years of operation, by the contracting
5646-utilities at the time that the facility producing
5647-the renewable energy credits is interconnected at
5648-the distribution system level of the utility and
5649-verified as energized and in compliance by the
5650-Program Administrator. The electric utility shall
5651-receive and retire all renewable energy credits
5652-generated by the project for the first 15 years of
5653-operation. Renewable energy credits generated by
5654-the project thereafter shall not be transferred
5655-under the renewable energy credit delivery
5656-
5657-
5658-contract with the counterparty electric utility.
5659-(2) The Agency shall open the first block of
5660-annual capacity for the category described in item
5661-(ii) of subparagraph (K) of this paragraph (1).
5662-The first block of annual capacity for item (ii)
5663-shall be for at least 75 megawatts of total
5664-nameplate capacity.
5665-(A) The price of the renewable energy
5666-credit for any project on a waitlist for this
5667-category before the opening of this block
5668-shall be 4% less than the price of the last
5669-open block in this category. Projects on the
5670-waitlist shall be awarded contracts first in
5671-the order in which they appear on the
5672-waitlist. Any projects that are less than or
5673-equal to 25 kilowatts in size on the waitlist
5674-for this capacity shall be moved to the
5675-waitlist for paragraph (1) of this item (iv).
5676-Notwithstanding anything to the contrary,
5677-projects that were on the waitlist prior to
5678-opening of this block shall not be required to
5679-be in compliance with the requirements of
5680-subparagraph (Q) of this paragraph (1) of this
5681-subsection (c). Notwithstanding anything to
5682-the contrary, for those renewable energy
5683-credits procured from projects that were on
5684-
5685-
5686-the waitlist for this category before the
5687-opening of this block 20% of the renewable
5688-energy credit delivery contract value, based
5689-on the estimated generation during the first
5690-15 years of operation, shall be paid by the
5691-contracting utilities at the time that the
5692-facility producing the renewable energy
5693-credits is interconnected at the distribution
5694-system level of the utility and verified as
5695-energized by the Program Administrator. The
5696-remaining portion shall be paid ratably over
5697-the subsequent 4-year period. The electric
5698-utility shall receive and retire all renewable
5699-energy credits generated by the project during
5700-the first 15 years of operation. Renewable
5701-energy credits generated by the project
5702-thereafter shall not be transferred under the
5703-renewable energy credit delivery contract with
5704-the counterparty electric utility.
5705-(B) The price of renewable energy credits
5706-for any project not on the waitlist for this
5707-category before the opening of the block shall
5708-be determined and published by the Agency.
5709-Projects not on a waitlist as of the opening
5710-of this block shall be subject to the
5711-requirements of subparagraph (Q) of this
5712-
5713-
5714-paragraph (1), as applicable. Projects not on
5715-a waitlist as of the opening of this block
5716-shall be subject to the contract provisions
5717-outlined in item (iii) of subparagraph (L) of
5718-this paragraph (1). The Agency shall strive to
5719-publish updated prices and an updated
5720-renewable energy credit delivery contract as
5721-quickly as possible.
5722-(3) For opening the first 2 blocks of annual
5723-capacity for projects participating in item (iii)
5724-of subparagraph (K) of paragraph (1) of subsection
5725-(c), projects shall be selected exclusively from
5726-those projects on the ordinal waitlists of
5727-community renewable generation projects
5728-established by the Agency based on the status of
5729-those ordinal waitlists as of December 31, 2020,
5730-and only those projects previously determined to
5731-be eligible for the Agency's April 2019 community
5732-solar project selection process.
5733-The first 2 blocks of annual capacity for item
5734-(iii) shall be for 250 megawatts of total
5735-nameplate capacity, with both blocks opening
5736-simultaneously under the schedule outlined in the
5737-paragraphs below. Projects shall be selected as
5738-follows:
5739-(A) The geographic balance of selected
5740-
5741-
5742-projects shall follow the Group classification
5743-found in the Agency's Revised Long-Term
5744-Renewable Resources Procurement Plan, with 70%
5745-of capacity allocated to projects on the Group
5746-B waitlist and 30% of capacity allocated to
5747-projects on the Group A waitlist.
5748-(B) Contract awards for waitlisted
5749-projects shall be allocated proportionate to
5750-the total nameplate capacity amount across
5751-both ordinal waitlists associated with that
5752-applicant firm or its affiliates, subject to
5753-the following conditions.
5754-(i) Each applicant firm having a
5755-waitlisted project eligible for selection
5756-shall receive no less than 500 kilowatts
5757-in awarded capacity across all groups, and
5758-no approved vendor may receive more than
5759-20% of each Group's waitlist allocation.
5760-(ii) Each applicant firm, upon
5761-receiving an award of program capacity
5762-proportionate to its waitlisted capacity,
5763-may then determine which waitlisted
5764-projects it chooses to be selected for a
5765-contract award up to that capacity amount.
5766-(iii) Assuming all other program
5767-requirements are met, applicant firms may
5768-
5769-
5770-adjust the nameplate capacity of applicant
5771-projects without losing waitlist
5772-eligibility, so long as no project is
5773-greater than 2,000 kilowatts in size.
5774-(iv) Assuming all other program
5775-requirements are met, applicant firms may
5776-adjust the expected production associated
5777-with applicant projects, subject to
5778-verification by the Program Administrator.
5779-(C) After a review of affiliate
5780-information and the current ordinal waitlists,
5781-the Agency shall announce the nameplate
5782-capacity award amounts associated with
5783-applicant firms no later than 90 days after
5784-the effective date of this amendatory Act of
5785-the 102nd General Assembly.
5786-(D) Applicant firms shall submit their
5787-portfolio of projects used to satisfy those
5788-contract awards no less than 90 days after the
5789-Agency's announcement. The total nameplate
5790-capacity of all projects used to satisfy that
5791-portfolio shall be no greater than the
5792-Agency's nameplate capacity award amount
5793-associated with that applicant firm. An
5794-applicant firm may decline, in whole or in
5795-part, its nameplate capacity award without
5796-
5797-
5798-penalty, with such unmet capacity rolled over
5799-to the next block opening for project
5800-selection under item (iii) of subparagraph (K)
5801-of this subsection (c). Any projects not
5802-included in an applicant firm's portfolio may
5803-reapply without prejudice upon the next block
5804-reopening for project selection under item
5805-(iii) of subparagraph (K) of this subsection
5806-(c).
5807-(E) The renewable energy credit delivery
5808-contract shall be subject to the contract and
5809-payment terms outlined in item (iv) of
5810-subparagraph (L) of this subsection (c).
5811-Contract instruments used for this
5812-subparagraph shall contain the following
5813-terms:
5814-(i) Renewable energy credit prices
5815-shall be fixed, without further adjustment
5816-under any other provision of this Act or
5817-for any other reason, at 10% lower than
5818-prices applicable to the last open block
5819-for this category, inclusive of any adders
5820-available for achieving a minimum of 50%
5821-of subscribers to the project's nameplate
5822-capacity being residential or small
5823-commercial customers with subscriptions of
5824-
5825-
5826-below 25 kilowatts in size;
5827-(ii) A requirement that a minimum of
5828-50% of subscribers to the project's
5829-nameplate capacity be residential or small
5830-commercial customers with subscriptions of
5831-below 25 kilowatts in size;
5832-(iii) Permission for the ability of a
5833-contract holder to substitute projects
5834-with other waitlisted projects without
5835-penalty should a project receive a
5836-non-binding estimate of costs to construct
5837-the interconnection facilities and any
5838-required distribution upgrades associated
5839-with that project of greater than 30 cents
5840-per watt AC of that project's nameplate
5841-capacity. In developing the applicable
5842-contract instrument, the Agency may
5843-consider whether other circumstances
5844-outside of the control of the applicant
5845-firm should also warrant project
5846-substitution rights.
5847-The Agency shall publish a finalized
5848-updated renewable energy credit delivery
5849-contract developed consistent with these terms
5850-and conditions no less than 30 days before
5851-applicant firms must submit their portfolio of
5852-
5853-
5854-projects pursuant to item (D).
5855-(F) To be eligible for an award, the
5856-applicant firm shall certify that not less
5857-than prevailing wage, as determined pursuant
5858-to the Illinois Prevailing Wage Act, was or
5859-will be paid to employees who are engaged in
5860-construction activities associated with a
5861-selected project.
5862-(4) The Agency shall open the first block of
5863-annual capacity for the category described in item
5864-(iv) of subparagraph (K) of this paragraph (1).
5865-The first block of annual capacity for item (iv)
5866-shall be for at least 50 megawatts of total
5867-nameplate capacity. Renewable energy credit prices
5868-shall be fixed, without further adjustment under
5869-any other provision of this Act or for any other
5870-reason, at the price in the last open block in the
5871-category described in item (ii) of subparagraph
5872-(K) of this paragraph (1). Pricing for future
5873-blocks of annual capacity for this category may be
5874-adjusted in the Agency's second revision to its
5875-Long-Term Renewable Resources Procurement Plan.
5876-Projects in this category shall be subject to the
5877-contract terms outlined in item (iv) of
5878-subparagraph (L) of this paragraph (1).
5879-(5) The Agency shall open the equivalent of 2
5880-
5881-
5882-years of annual capacity for the category
5883-described in item (v) of subparagraph (K) of this
5884-paragraph (1). The first block of annual capacity
5885-for item (v) shall be for at least 10 megawatts of
5886-total nameplate capacity. Notwithstanding the
5887-provisions of item (v) of subparagraph (K) of this
5888-paragraph (1), for the purpose of this initial
5889-block, the agency shall accept new project
5890-applications intended to increase the diversity of
5891-areas hosting community solar projects, the
5892-business models of projects, and the size of
5893-projects, as described by the Agency in its
5894-long-term renewable resources procurement plan
5895-that is approved as of the effective date of this
5896-amendatory Act of the 102nd General Assembly.
5897-Projects in this category shall be subject to the
5898-contract terms outlined in item (iii) of
5899-subsection (L) of this paragraph (1).
5900-(6) The Agency shall open the first blocks of
5901-annual capacity for the category described in item
5902-(vi) of subparagraph (K) of this paragraph (1),
5903-with allocations of capacity within the block
5904-generally matching the historical share of block
5905-capacity allocated between the category described
5906-in items (i) and (ii) of subparagraph (K) of this
5907-paragraph (1). The first two blocks of annual
5908-
5909-
5910-capacity for item (vi) shall be for at least 75
5911-megawatts of total nameplate capacity. The price
5912-of renewable energy credits for the blocks of
5913-capacity shall be 4% less than the price of the
5914-last open blocks in the categories described in
5915-items (i) and (ii) of subparagraph (K) of this
5916-paragraph (1). Pricing for future blocks of annual
5917-capacity for this category may be adjusted in the
5918-Agency's second revision to its Long-Term
5919-Renewable Resources Procurement Plan. Projects in
5920-this category shall be subject to the applicable
5921-contract terms outlined in items (ii) and (iii) of
5922-subparagraph (L) of this paragraph (1).
5923-(v) Upon the effective date of this amendatory Act
5924-of the 102nd General Assembly, for all competitive
5925-procurements and any procurements of renewable energy
5926-credit from new utility-scale wind and new
5927-utility-scale photovoltaic projects, the Agency shall
5928-procure indexed renewable energy credits and direct
5929-respondents to offer a strike price.
5930-(1) The purchase price of the indexed
5931-renewable energy credit payment shall be
5932-calculated for each settlement period. That
5933-payment, for any settlement period, shall be equal
5934-to the difference resulting from subtracting the
5935-strike price from the index price for that
5936-
5937-
5938-settlement period. If this difference results in a
5939-negative number, the indexed REC counterparty
5940-shall owe the seller the absolute value multiplied
5941-by the quantity of energy produced in the relevant
5942-settlement period. If this difference results in a
5943-positive number, the seller shall owe the indexed
5944-REC counterparty this amount multiplied by the
5945-quantity of energy produced in the relevant
5946-settlement period.
5947-(2) Parties shall cash settle every month,
5948-summing up all settlements (both positive and
5949-negative, if applicable) for the prior month.
5950-(3) To ensure funding in the annual budget
5951-established under subparagraph (E) for indexed
5952-renewable energy credit procurements for each year
5953-of the term of such contracts, which must have a
5954-minimum tenure of 20 calendar years, the
5955-procurement administrator, Agency, Commission
5956-staff, and procurement monitor shall quantify the
5957-annual cost of the contract by utilizing an
5958-industry-standard, third-party forward price curve
5959-for energy at the appropriate hub or load zone,
5960-including the estimated magnitude and timing of
5961-the price effects related to federal carbon
5962-controls. Each forward price curve shall contain a
5963-specific value of the forecasted market price of
5964-
5965-
5966-electricity for each annual delivery year of the
5967-contract. For procurement planning purposes, the
5968-impact on the annual budget for the cost of
5969-indexed renewable energy credits for each delivery
5970-year shall be determined as the expected annual
5971-contract expenditure for that year, equaling the
5972-difference between (i) the sum across all relevant
5973-contracts of the applicable strike price
5974-multiplied by contract quantity and (ii) the sum
5975-across all relevant contracts of the forward price
5976-curve for the applicable load zone for that year
5977-multiplied by contract quantity. The contracting
5978-utility shall not assume an obligation in excess
5979-of the estimated annual cost of the contracts for
5980-indexed renewable energy credits. Forward curves
5981-shall be revised on an annual basis as updated
5982-forward price curves are released and filed with
5983-the Commission in the proceeding approving the
5984-Agency's most recent long-term renewable resources
5985-procurement plan. If the expected contract spend
5986-is higher or lower than the total quantity of
5987-contracts multiplied by the forward price curve
5988-value for that year, the forward price curve shall
5989-be updated by the procurement administrator, in
5990-consultation with the Agency, Commission staff,
5991-and procurement monitors, using then-currently
5992-
5993-
5994-available price forecast data and additional
5995-budget dollars shall be obligated or reobligated
5996-as appropriate.
5997-(4) To ensure that indexed renewable energy
5998-credit prices remain predictable and affordable,
5999-the Agency may consider the institution of a price
6000-collar on REC prices paid under indexed renewable
6001-energy credit procurements establishing floor and
6002-ceiling REC prices applicable to indexed REC
6003-contract prices. Any price collars applicable to
6004-indexed REC procurements shall be proposed by the
6005-Agency through its long-term renewable resources
6006-procurement plan.
6007-(vi) All procurements under this subparagraph (G),
6008-including the procurement of renewable energy credits
6009-from hydropower facilities, shall comply with the
6010-geographic requirements in subparagraph (I) of this
6011-paragraph (1) and shall follow the procurement
6012-processes and procedures described in this Section and
6013-Section 16-111.5 of the Public Utilities Act to the
6014-extent practicable, and these processes and procedures
6015-may be expedited to accommodate the schedule
6016-established by this subparagraph (G).
6017-(vii) On and after the effective date of this
6018-amendatory Act of the 103rd General Assembly, for all
6019-procurements of renewable energy credits from
6020-
6021-
6022-hydropower facilities, the Agency shall establish
6023-contract terms designed to optimize existing
6024-hydropower facilities through modernization or
6025-retooling and establish new hydropower facilities at
6026-existing dams. Procurements made under this item (vii)
6027-shall prioritize projects located in designated
6028-environmental justice communities, as defined in
6029-subsection (b) of Section 1-56 of this Act, or in
6030-projects located in units of local government with
6031-median incomes that do not exceed 82% of the median
6032-income of the State.
6033-(H) The procurement of renewable energy resources for
6034-a given delivery year shall be reduced as described in
6035-this subparagraph (H) if an alternative retail electric
6036-supplier meets the requirements described in this
6037-subparagraph (H).
6038-(i) Within 45 days after June 1, 2017 (the
6039-effective date of Public Act 99-906), an alternative
6040-retail electric supplier or its successor shall submit
6041-an informational filing to the Illinois Commerce
6042-Commission certifying that, as of December 31, 2015,
6043-the alternative retail electric supplier owned one or
6044-more electric generating facilities that generates
6045-renewable energy resources as defined in Section 1-10
6046-of this Act, provided that such facilities are not
6047-powered by wind or photovoltaics, and the facilities
6048-
6049-
6050-generate one renewable energy credit for each
6051-megawatthour of energy produced from the facility.
6052-The informational filing shall identify each
6053-facility that was eligible to satisfy the alternative
6054-retail electric supplier's obligations under Section
6055-16-115D of the Public Utilities Act as described in
6056-this item (i).
6057-(ii) For a given delivery year, the alternative
6058-retail electric supplier may elect to supply its
6059-retail customers with renewable energy credits from
6060-the facility or facilities described in item (i) of
6061-this subparagraph (H) that continue to be owned by the
6062-alternative retail electric supplier.
6063-(iii) The alternative retail electric supplier
6064-shall notify the Agency and the applicable utility, no
6065-later than February 28 of the year preceding the
6066-applicable delivery year or 15 days after June 1, 2017
6067-(the effective date of Public Act 99-906), whichever
6068-is later, of its election under item (ii) of this
6069-subparagraph (H) to supply renewable energy credits to
6070-retail customers of the utility. Such election shall
6071-identify the amount of renewable energy credits to be
6072-supplied by the alternative retail electric supplier
6073-to the utility's retail customers and the source of
6074-the renewable energy credits identified in the
6075-informational filing as described in item (i) of this
6076-
6077-
6078-subparagraph (H), subject to the following
6079-limitations:
6080-For the delivery year beginning June 1, 2018,
6081-the maximum amount of renewable energy credits to
6082-be supplied by an alternative retail electric
6083-supplier under this subparagraph (H) shall be 68%
6084-multiplied by 25% multiplied by 14.5% multiplied
6085-by the amount of metered electricity
6086-(megawatt-hours) delivered by the alternative
6087-retail electric supplier to Illinois retail
6088-customers during the delivery year ending May 31,
6089-2016.
6090-For delivery years beginning June 1, 2019 and
6091-each year thereafter, the maximum amount of
6092-renewable energy credits to be supplied by an
6093-alternative retail electric supplier under this
6094-subparagraph (H) shall be 68% multiplied by 50%
6095-multiplied by 16% multiplied by the amount of
6096-metered electricity (megawatt-hours) delivered by
6097-the alternative retail electric supplier to
6098-Illinois retail customers during the delivery year
6099-ending May 31, 2016, provided that the 16% value
6100-shall increase by 1.5% each delivery year
6101-thereafter to 25% by the delivery year beginning
6102-June 1, 2025, and thereafter the 25% value shall
6103-apply to each delivery year.
6104-
6105-
6106-For each delivery year, the total amount of
6107-renewable energy credits supplied by all alternative
6108-retail electric suppliers under this subparagraph (H)
6109-shall not exceed 9% of the Illinois target renewable
6110-energy credit quantity. The Illinois target renewable
6111-energy credit quantity for the delivery year beginning
6112-June 1, 2018 is 14.5% multiplied by the total amount of
6113-metered electricity (megawatt-hours) delivered in the
6114-delivery year immediately preceding that delivery
6115-year, provided that the 14.5% shall increase by 1.5%
6116-each delivery year thereafter to 25% by the delivery
6117-year beginning June 1, 2025, and thereafter the 25%
6118-value shall apply to each delivery year.
6119-If the requirements set forth in items (i) through
6120-(iii) of this subparagraph (H) are met, the charges
6121-that would otherwise be applicable to the retail
6122-customers of the alternative retail electric supplier
6123-under paragraph (6) of this subsection (c) for the
6124-applicable delivery year shall be reduced by the ratio
6125-of the quantity of renewable energy credits supplied
6126-by the alternative retail electric supplier compared
6127-to that supplier's target renewable energy credit
6128-quantity. The supplier's target renewable energy
6129-credit quantity for the delivery year beginning June
6130-1, 2018 is 14.5% multiplied by the total amount of
6131-metered electricity (megawatt-hours) delivered by the
6132-
6133-
6134-alternative retail supplier in that delivery year,
6135-provided that the 14.5% shall increase by 1.5% each
6136-delivery year thereafter to 25% by the delivery year
6137-beginning June 1, 2025, and thereafter the 25% value
6138-shall apply to each delivery year.
6139-On or before April 1 of each year, the Agency shall
6140-annually publish a report on its website that
6141-identifies the aggregate amount of renewable energy
6142-credits supplied by alternative retail electric
6143-suppliers under this subparagraph (H).
6144-(I) The Agency shall design its long-term renewable
6145-energy procurement plan to maximize the State's interest
6146-in the health, safety, and welfare of its residents,
6147-including but not limited to minimizing sulfur dioxide,
6148-nitrogen oxide, particulate matter and other pollution
6149-that adversely affects public health in this State,
6150-increasing fuel and resource diversity in this State,
6151-enhancing the reliability and resiliency of the
6152-electricity distribution system in this State, meeting
6153-goals to limit carbon dioxide emissions under federal or
6154-State law, and contributing to a cleaner and healthier
6155-environment for the citizens of this State. In order to
6156-further these legislative purposes, renewable energy
6157-credits shall be eligible to be counted toward the
6158-renewable energy requirements of this subsection (c) if
6159-they are generated from facilities located in this State.
6160-
6161-
6162-The Agency may qualify renewable energy credits from
6163-facilities located in states adjacent to Illinois or
6164-renewable energy credits associated with the electricity
6165-generated by a utility-scale wind energy facility or
6166-utility-scale photovoltaic facility and transmitted by a
6167-qualifying direct current project described in subsection
6168-(b-5) of Section 8-406 of the Public Utilities Act to a
6169-delivery point on the electric transmission grid located
6170-in this State or a state adjacent to Illinois, if the
6171-generator demonstrates and the Agency determines that the
6172-operation of such facility or facilities will help promote
6173-the State's interest in the health, safety, and welfare of
6174-its residents based on the public interest criteria
6175-described above. For the purposes of this Section,
6176-renewable resources that are delivered via a high voltage
6177-direct current converter station located in Illinois shall
6178-be deemed generated in Illinois at the time and location
6179-the energy is converted to alternating current by the high
6180-voltage direct current converter station if the high
6181-voltage direct current transmission line: (i) after the
6182-effective date of this amendatory Act of the 102nd General
6183-Assembly, was constructed with a project labor agreement;
6184-(ii) is capable of transmitting electricity at 525kv;
6185-(iii) has an Illinois converter station located and
6186-interconnected in the region of the PJM Interconnection,
6187-LLC; (iv) does not operate as a public utility; and (v) if
6188-
6189-
6190-the high voltage direct current transmission line was
6191-energized after June 1, 2023. To ensure that the public
6192-interest criteria are applied to the procurement and given
6193-full effect, the Agency's long-term procurement plan shall
6194-describe in detail how each public interest factor shall
6195-be considered and weighted for facilities located in
6196-states adjacent to Illinois.
6197-(J) In order to promote the competitive development of
6198-renewable energy resources in furtherance of the State's
6199-interest in the health, safety, and welfare of its
6200-residents, renewable energy credits shall not be eligible
6201-to be counted toward the renewable energy requirements of
6202-this subsection (c) if they are sourced from a generating
6203-unit whose costs were being recovered through rates
6204-regulated by this State or any other state or states on or
6205-after January 1, 2017. Each contract executed to purchase
6206-renewable energy credits under this subsection (c) shall
6207-provide for the contract's termination if the costs of the
6208-generating unit supplying the renewable energy credits
6209-subsequently begin to be recovered through rates regulated
6210-by this State or any other state or states; and each
6211-contract shall further provide that, in that event, the
6212-supplier of the credits must return 110% of all payments
6213-received under the contract. Amounts returned under the
6214-requirements of this subparagraph (J) shall be retained by
6215-the utility and all of these amounts shall be used for the
6216-
6217-
6218-procurement of additional renewable energy credits from
6219-new wind or new photovoltaic resources as defined in this
6220-subsection (c). The long-term plan shall provide that
6221-these renewable energy credits shall be procured in the
6222-next procurement event.
6223-Notwithstanding the limitations of this subparagraph
6224-(J), renewable energy credits sourced from generating
6225-units that are constructed, purchased, owned, or leased by
6226-an electric utility as part of an approved project,
6227-program, or pilot under Section 1-56 of this Act shall be
6228-eligible to be counted toward the renewable energy
6229-requirements of this subsection (c), regardless of how the
6230-costs of these units are recovered. As long as a
6231-generating unit or an identifiable portion of a generating
6232-unit has not had and does not have its costs recovered
6233-through rates regulated by this State or any other state,
6234-HVDC renewable energy credits associated with that
6235-generating unit or identifiable portion thereof shall be
6236-eligible to be counted toward the renewable energy
6237-requirements of this subsection (c).
6238-(K) The long-term renewable resources procurement plan
6239-developed by the Agency in accordance with subparagraph
6240-(A) of this paragraph (1) shall include an Adjustable
6241-Block program for the procurement of renewable energy
6242-credits from new photovoltaic projects that are
6243-distributed renewable energy generation devices or new
6244-
6245-
6246-photovoltaic community renewable generation projects. The
6247-Adjustable Block program shall be generally designed to
6248-provide for the steady, predictable, and sustainable
6249-growth of new solar photovoltaic development in Illinois.
6250-To this end, the Adjustable Block program shall provide a
6251-transparent annual schedule of prices and quantities to
6252-enable the photovoltaic market to scale up and for
6253-renewable energy credit prices to adjust at a predictable
6254-rate over time. The prices set by the Adjustable Block
6255-program can be reflected as a set value or as the product
6256-of a formula.
6257-The Adjustable Block program shall include for each
6258-category of eligible projects for each delivery year: a
6259-single block of nameplate capacity, a price for renewable
6260-energy credits within that block, and the terms and
6261-conditions for securing a spot on a waitlist once the
6262-block is fully committed or reserved. Except as outlined
6263-below, the waitlist of projects in a given year will carry
6264-over to apply to the subsequent year when another block is
6265-opened. Only projects energized on or after June 1, 2017
6266-shall be eligible for the Adjustable Block program. For
6267-each category for each delivery year the Agency shall
6268-determine the amount of generation capacity in each block,
6269-and the purchase price for each block, provided that the
6270-purchase price provided and the total amount of generation
6271-in all blocks for all categories shall be sufficient to
6272-
6273-
6274-meet the goals in this subsection (c). The Agency shall
6275-strive to issue a single block sized to provide for
6276-stability and market growth. The Agency shall establish
6277-program eligibility requirements that ensure that projects
6278-that enter the program are sufficiently mature to indicate
6279-a demonstrable path to completion. The Agency may
6280-periodically review its prior decisions establishing the
6281-amount of generation capacity in each block, and the
6282-purchase price for each block, and may propose, on an
6283-expedited basis, changes to these previously set values,
6284-including but not limited to redistributing these amounts
6285-and the available funds as necessary and appropriate,
6286-subject to Commission approval as part of the periodic
6287-plan revision process described in Section 16-111.5 of the
6288-Public Utilities Act. The Agency may define different
6289-block sizes, purchase prices, or other distinct terms and
6290-conditions for projects located in different utility
6291-service territories if the Agency deems it necessary to
6292-meet the goals in this subsection (c).
6293-The Adjustable Block program shall include the
6294-following categories in at least the following amounts:
6295-(i) At least 20% from distributed renewable energy
6296-generation devices with a nameplate capacity of no
6297-more than 25 kilowatts.
6298-(ii) At least 20% from distributed renewable
6299-energy generation devices with a nameplate capacity of
6300-
6301-
6302-more than 25 kilowatts and no more than 5,000
6303-kilowatts. The Agency may create sub-categories within
6304-this category to account for the differences between
6305-projects for small commercial customers, large
6306-commercial customers, and public or non-profit
6307-customers.
6308-(iii) At least 30% from photovoltaic community
6309-renewable generation projects. Capacity for this
6310-category for the first 2 delivery years after the
6311-effective date of this amendatory Act of the 102nd
6312-General Assembly shall be allocated to waitlist
6313-projects as provided in paragraph (3) of item (iv) of
6314-subparagraph (G). Starting in the third delivery year
6315-after the effective date of this amendatory Act of the
6316-102nd General Assembly or earlier if the Agency
6317-determines there is additional capacity needed for to
6318-meet previous delivery year requirements, the
6319-following shall apply:
6320-(1) the Agency shall select projects on a
6321-first-come, first-serve basis, however the Agency
6322-may suggest additional methods to prioritize
6323-projects that are submitted at the same time;
6324-(2) projects shall have subscriptions of 25 kW
6325-or less for at least 50% of the facility's
6326-nameplate capacity and the Agency shall price the
6327-renewable energy credits with that as a factor;
6328-
6329-
6330-(3) projects shall not be colocated with one
6331-or more other community renewable generation
6332-projects, as defined in the Agency's first revised
6333-long-term renewable resources procurement plan
6334-approved by the Commission on February 18, 2020,
6335-such that the aggregate nameplate capacity exceeds
6336-5,000 kilowatts; and
6337-(4) projects greater than 2 MW may not apply
6338-until after the approval of the Agency's revised
6339-Long-Term Renewable Resources Procurement Plan
6340-after the effective date of this amendatory Act of
6341-the 102nd General Assembly.
6342-(iv) At least 15% from distributed renewable
6343-generation devices or photovoltaic community renewable
6344-generation projects installed on at public school land
6345-schools. The Agency may create subcategories within
6346-this category to account for the differences between
6347-project size or location. Projects located within
6348-environmental justice communities or within
6349-Organizational Units that fall within Tier 1 or Tier 2
6350-shall be given priority. Each of the Agency's periodic
6351-updates to its long-term renewable resources
6352-procurement plan to incorporate the procurement
6353-described in this subparagraph (iv) shall also include
6354-the proposed quantities or blocks, pricing, and
6355-contract terms applicable to the procurement as
6356-
6357-
6358-indicated herein. In each such update and procurement,
6359-the Agency shall set the renewable energy credit price
6360-and establish payment terms for the renewable energy
6361-credits procured pursuant to this subparagraph (iv)
6362-that make it feasible and affordable for public
6363-schools to install photovoltaic distributed renewable
6364-energy devices on their premises, including, but not
6365-limited to, those public schools subject to the
6366-prioritization provisions of this subparagraph. For
6367-the purposes of this item (iv):
6368-"Environmental Justice Community" shall have the
6369-same meaning set forth in the Agency's long-term
6370-renewable resources procurement plan;
6371-"Organization Unit", "Tier 1" and "Tier 2" shall
6372-have the meanings set for in Section 18-8.15 of the
6373-School Code;
6374-"Public schools" shall have the meaning set forth
6375-in Section 1-3 of the School Code and includes public
6376-institutions of higher education, as defined in the
6377-Board of Higher Education Act.
6378-(v) At least 5% from community-driven community
6379-solar projects intended to provide more direct and
6380-tangible connection and benefits to the communities
6381-which they serve or in which they operate and,
6382-additionally, to increase the variety of community
6383-solar locations, models, and options in Illinois. As
6384-
6385-
6386-part of its long-term renewable resources procurement
6387-plan, the Agency shall develop selection criteria for
6388-projects participating in this category. Nothing in
6389-this Section shall preclude the Agency from creating a
6390-selection process that maximizes community ownership
6391-and community benefits in selecting projects to
6392-receive renewable energy credits. Selection criteria
6393-shall include:
6394-(1) community ownership or community
6395-wealth-building;
6396-(2) additional direct and indirect community
6397-benefit, beyond project participation as a
6398-subscriber, including, but not limited to,
6399-economic, environmental, social, cultural, and
6400-physical benefits;
6401-(3) meaningful involvement in project
6402-organization and development by community members
6403-or nonprofit organizations or public entities
6404-located in or serving the community;
6405-(4) engagement in project operations and
6406-management by nonprofit organizations, public
6407-entities, or community members; and
6408-(5) whether a project is developed in response
6409-to a site-specific RFP developed by community
6410-members or a nonprofit organization or public
6411-entity located in or serving the community.
6412-
6413-
6414-Selection criteria may also prioritize projects
6415-that:
6416-(1) are developed in collaboration with or to
6417-provide complementary opportunities for the Clean
6418-Jobs Workforce Network Program, the Illinois
6419-Climate Works Preapprenticeship Program, the
6420-Returning Residents Clean Jobs Training Program,
6421-the Clean Energy Contractor Incubator Program, or
6422-the Clean Energy Primes Contractor Accelerator
6423-Program;
6424-(2) increase the diversity of locations of
6425-community solar projects in Illinois, including by
6426-locating in urban areas and population centers;
6427-(3) are located in Equity Investment Eligible
6428-Communities;
6429-(4) are not greenfield projects;
6430-(5) serve only local subscribers;
6431-(6) have a nameplate capacity that does not
6432-exceed 500 kW;
6433-(7) are developed by an equity eligible
6434-contractor; or
6435-(8) otherwise meaningfully advance the goals
6436-of providing more direct and tangible connection
6437-and benefits to the communities which they serve
6438-or in which they operate and increasing the
6439-variety of community solar locations, models, and
6440-
6441-
6442-options in Illinois.
6443-For the purposes of this item (v):
6444-"Community" means a social unit in which people
6445-come together regularly to effect change; a social
6446-unit in which participants are marked by a cooperative
6447-spirit, a common purpose, or shared interests or
6448-characteristics; or a space understood by its
6449-residents to be delineated through geographic
6450-boundaries or landmarks.
6451-"Community benefit" means a range of services and
6452-activities that provide affirmative, economic,
6453-environmental, social, cultural, or physical value to
6454-a community; or a mechanism that enables economic
6455-development, high-quality employment, and education
6456-opportunities for local workers and residents, or
6457-formal monitoring and oversight structures such that
6458-community members may ensure that those services and
6459-activities respond to local knowledge and needs.
6460-"Community ownership" means an arrangement in
6461-which an electric generating facility is, or over time
6462-will be, in significant part, owned collectively by
6463-members of the community to which an electric
6464-generating facility provides benefits; members of that
6465-community participate in decisions regarding the
6466-governance, operation, maintenance, and upgrades of
6467-and to that facility; and members of that community
6468-
6469-
6470-benefit from regular use of that facility.
6471-Terms and guidance within these criteria that are
6472-not defined in this item (v) shall be defined by the
6473-Agency, with stakeholder input, during the development
6474-of the Agency's long-term renewable resources
6475-procurement plan. The Agency shall develop regular
6476-opportunities for projects to submit applications for
6477-projects under this category, and develop selection
6478-criteria that gives preference to projects that better
6479-meet individual criteria as well as projects that
6480-address a higher number of criteria.
6481-(vi) At least 10% from distributed renewable
6482-energy generation devices, which includes distributed
6483-renewable energy devices with a nameplate capacity
6484-under 5,000 kilowatts or photovoltaic community
6485-renewable generation projects, from applicants that
6486-are equity eligible contractors. The Agency may create
6487-subcategories within this category to account for the
6488-differences between project size and type. The Agency
6489-shall propose to increase the percentage in this item
6490-(vi) over time to 40% based on factors, including, but
6491-not limited to, the number of equity eligible
6492-contractors and capacity used in this item (vi) in
6493-previous delivery years.
6494-The Agency shall propose a payment structure for
6495-contracts executed pursuant to this paragraph under
6496-
6497-
6498-which, upon a demonstration of qualification or need,
6499-applicant firms are advanced capital disbursed after
6500-contract execution but before the contracted project's
6501-energization. The amount or percentage of capital
6502-advanced prior to project energization shall be
6503-sufficient to both cover any increase in development
6504-costs resulting from prevailing wage requirements or
6505-project-labor agreements, and designed to overcome
6506-barriers in access to capital faced by equity eligible
6507-contractors. The amount or percentage of advanced
6508-capital may vary by subcategory within this category
6509-and by an applicant's demonstration of need, with such
6510-levels to be established through the Long-Term
6511-Renewable Resources Procurement Plan authorized under
6512-subparagraph (A) of paragraph (1) of subsection (c) of
6513-this Section.
6514-Contracts developed featuring capital advanced
6515-prior to a project's energization shall feature
6516-provisions to ensure both the successful development
6517-of applicant projects and the delivery of the
6518-renewable energy credits for the full term of the
6519-contract, including ongoing collateral requirements
6520-and other provisions deemed necessary by the Agency,
6521-and may include energization timelines longer than for
6522-comparable project types. The percentage or amount of
6523-capital advanced prior to project energization shall
6524-
6525-
6526-not operate to increase the overall contract value,
6527-however contracts executed under this subparagraph may
6528-feature renewable energy credit prices higher than
6529-those offered to similar projects participating in
6530-other categories. Capital advanced prior to
6531-energization shall serve to reduce the ratable
6532-payments made after energization under items (ii) and
6533-(iii) of subparagraph (L) or payments made for each
6534-renewable energy credit delivery under item (iv) of
6535-subparagraph (L).
6536-(vii) The remaining capacity shall be allocated by
6537-the Agency in order to respond to market demand. The
6538-Agency shall allocate any discretionary capacity prior
6539-to the beginning of each delivery year.
6540-To the extent there is uncontracted capacity from any
6541-block in any of categories (i) through (vi) at the end of a
6542-delivery year, the Agency shall redistribute that capacity
6543-to one or more other categories giving priority to
6544-categories with projects on a waitlist. The redistributed
6545-capacity shall be added to the annual capacity in the
6546-subsequent delivery year, and the price for renewable
6547-energy credits shall be the price for the new delivery
6548-year. Redistributed capacity shall not be considered
6549-redistributed when determining whether the goals in this
6550-subsection (K) have been met.
6551-Notwithstanding anything to the contrary, as the
6552-
6553-
6554-Agency increases the capacity in item (vi) to 40% over
6555-time, the Agency may reduce the capacity of items (i)
6556-through (v) proportionate to the capacity of the
6557-categories of projects in item (vi), to achieve a balance
6558-of project types.
6559-The Adjustable Block program shall be designed to
6560-ensure that renewable energy credits are procured from
6561-projects in diverse locations and are not concentrated in
6562-a few regional areas.
6563-(L) Notwithstanding provisions for advancing capital
6564-prior to project energization found in item (vi) of
6565-subparagraph (K), the procurement of photovoltaic
6566-renewable energy credits under items (i) through (vi) of
6567-subparagraph (K) of this paragraph (1) shall otherwise be
6568-subject to the following contract and payment terms:
6569-(i) (Blank).
6570-(ii) For those renewable energy credits that
6571-qualify and are procured under item (i) of
6572-subparagraph (K) of this paragraph (1), and any
6573-similar category projects that are procured under item
6574-(vi) of subparagraph (K) of this paragraph (1) that
6575-qualify and are procured under item (vi), the contract
6576-length shall be 15 years. The renewable energy credit
6577-delivery contract value shall be paid in full, based
6578-on the estimated generation during the first 15 years
6579-of operation, by the contracting utilities at the time
6580-
6581-
6582-that the facility producing the renewable energy
6583-credits is interconnected at the distribution system
6584-level of the utility and verified as energized and
6585-compliant by the Program Administrator. The electric
6586-utility shall receive and retire all renewable energy
6587-credits generated by the project for the first 15
6588-years of operation. Renewable energy credits generated
6589-by the project thereafter shall not be transferred
6590-under the renewable energy credit delivery contract
6591-with the counterparty electric utility.
6592-(iii) For those renewable energy credits that
6593-qualify and are procured under item (ii) and (v) of
6594-subparagraph (K) of this paragraph (1) and any like
6595-projects similar category that qualify and are
6596-procured under item (vi), the contract length shall be
6597-15 years. 15% of the renewable energy credit delivery
6598-contract value, based on the estimated generation
6599-during the first 15 years of operation, shall be paid
6600-by the contracting utilities at the time that the
6601-facility producing the renewable energy credits is
6602-interconnected at the distribution system level of the
6603-utility and verified as energized and compliant by the
6604-Program Administrator. The remaining portion shall be
6605-paid ratably over the subsequent 6-year period. The
6606-electric utility shall receive and retire all
6607-renewable energy credits generated by the project for
6608-
6609-
6610-the first 15 years of operation. Renewable energy
6611-credits generated by the project thereafter shall not
6612-be transferred under the renewable energy credit
6613-delivery contract with the counterparty electric
6614-utility.
6615-(iv) For those renewable energy credits that
6616-qualify and are procured under items (iii) and (iv) of
6617-subparagraph (K) of this paragraph (1), and any like
6618-projects that qualify and are procured under item
6619-(vi), the renewable energy credit delivery contract
6620-length shall be 20 years and shall be paid over the
6621-delivery term, not to exceed during each delivery year
6622-the contract price multiplied by the estimated annual
6623-renewable energy credit generation amount. If
6624-generation of renewable energy credits during a
6625-delivery year exceeds the estimated annual generation
6626-amount, the excess renewable energy credits shall be
6627-carried forward to future delivery years and shall not
6628-expire during the delivery term. If generation of
6629-renewable energy credits during a delivery year,
6630-including carried forward excess renewable energy
6631-credits, if any, is less than the estimated annual
6632-generation amount, payments during such delivery year
6633-will not exceed the quantity generated plus the
6634-quantity carried forward multiplied by the contract
6635-price. The electric utility shall receive all
6636-
6637-
6638-renewable energy credits generated by the project
6639-during the first 20 years of operation and retire all
6640-renewable energy credits paid for under this item (iv)
6641-and return at the end of the delivery term all
6642-renewable energy credits that were not paid for.
6643-Renewable energy credits generated by the project
6644-thereafter shall not be transferred under the
6645-renewable energy credit delivery contract with the
6646-counterparty electric utility. Notwithstanding the
6647-preceding, for those projects participating under item
6648-(iii) of subparagraph (K), the contract price for a
6649-delivery year shall be based on subscription levels as
6650-measured on the higher of the first business day of the
6651-delivery year or the first business day 6 months after
6652-the first business day of the delivery year.
6653-Subscription of 90% of nameplate capacity or greater
6654-shall be deemed to be fully subscribed for the
6655-purposes of this item (iv). For projects receiving a
6656-20-year delivery contract, REC prices shall be
6657-adjusted downward for consistency with the incentive
6658-levels previously determined to be necessary to
6659-support projects under 15-year delivery contracts,
6660-taking into consideration any additional new
6661-requirements placed on the projects, including, but
6662-not limited to, labor standards.
6663-(v) Each contract shall include provisions to
6664-
6665-
6666-ensure the delivery of the estimated quantity of
6667-renewable energy credits and ongoing collateral
6668-requirements and other provisions deemed appropriate
6669-by the Agency.
6670-(vi) The utility shall be the counterparty to the
6671-contracts executed under this subparagraph (L) that
6672-are approved by the Commission under the process
6673-described in Section 16-111.5 of the Public Utilities
6674-Act. No contract shall be executed for an amount that
6675-is less than one renewable energy credit per year.
6676-(vii) If, at any time, approved applications for
6677-the Adjustable Block program exceed funds collected by
6678-the electric utility or would cause the Agency to
6679-exceed the limitation described in subparagraph (E) of
6680-this paragraph (1) on the amount of renewable energy
6681-resources that may be procured, then the Agency may
6682-consider future uncommitted funds to be reserved for
6683-these contracts on a first-come, first-served basis.
6684-(viii) Nothing in this Section shall require the
6685-utility to advance any payment or pay any amounts that
6686-exceed the actual amount of revenues anticipated to be
6687-collected by the utility under paragraph (6) of this
6688-subsection (c) and subsection (k) of Section 16-108 of
6689-the Public Utilities Act inclusive of eligible funds
6690-collected in prior years and alternative compliance
6691-payments for use by the utility, and contracts
6692-
6693-
6694-executed under this Section shall expressly
6695-incorporate this limitation.
6696-(ix) Notwithstanding other requirements of this
6697-subparagraph (L), no modification shall be required to
6698-Adjustable Block program contracts if they were
6699-already executed prior to the establishment, approval,
6700-and implementation of new contract forms as a result
6701-of this amendatory Act of the 102nd General Assembly.
6702-(x) Contracts may be assignable, but only to
6703-entities first deemed by the Agency to have met
6704-program terms and requirements applicable to direct
6705-program participation. In developing contracts for the
6706-delivery of renewable energy credits, the Agency shall
6707-be permitted to establish fees applicable to each
6708-contract assignment.
6709-(M) The Agency shall be authorized to retain one or
6710-more experts or expert consulting firms to develop,
6711-administer, implement, operate, and evaluate the
6712-Adjustable Block program described in subparagraph (K) of
6713-this paragraph (1), and the Agency shall retain the
6714-consultant or consultants in the same manner, to the
6715-extent practicable, as the Agency retains others to
6716-administer provisions of this Act, including, but not
6717-limited to, the procurement administrator. The selection
6718-of experts and expert consulting firms and the procurement
6719-process described in this subparagraph (M) are exempt from
6720-
6721-
6722-the requirements of Section 20-10 of the Illinois
6723-Procurement Code, under Section 20-10 of that Code. The
6724-Agency shall strive to minimize administrative expenses in
6725-the implementation of the Adjustable Block program.
6726-The Program Administrator may charge application fees
6727-to participating firms to cover the cost of program
6728-administration. Any application fee amounts shall
6729-initially be determined through the long-term renewable
6730-resources procurement plan, and modifications to any
6731-application fee that deviate more than 25% from the
6732-Commission's approved value must be approved by the
6733-Commission as a long-term plan revision under Section
6734-16-111.5 of the Public Utilities Act. The Agency shall
6735-consider stakeholder feedback when making adjustments to
6736-application fees and shall notify stakeholders in advance
6737-of any planned changes.
6738-In addition to covering the costs of program
6739-administration, the Agency, in conjunction with its
6740-Program Administrator, may also use the proceeds of such
6741-fees charged to participating firms to support public
6742-education and ongoing regional and national coordination
6743-with nonprofit organizations, public bodies, and others
6744-engaged in the implementation of renewable energy
6745-incentive programs or similar initiatives. This work may
6746-include developing papers and reports, hosting regional
6747-and national conferences, and other work deemed necessary
6748-
6749-
6750-by the Agency to position the State of Illinois as a
6751-national leader in renewable energy incentive program
6752-development and administration.
6753-The Agency and its consultant or consultants shall
6754-monitor block activity, share program activity with
6755-stakeholders and conduct quarterly meetings to discuss
6756-program activity and market conditions. If necessary, the
6757-Agency may make prospective administrative adjustments to
6758-the Adjustable Block program design, such as making
6759-adjustments to purchase prices as necessary to achieve the
6760-goals of this subsection (c). Program modifications to any
6761-block price that do not deviate from the Commission's
6762-approved value by more than 10% shall take effect
6763-immediately and are not subject to Commission review and
6764-approval. Program modifications to any block price that
6765-deviate more than 10% from the Commission's approved value
6766-must be approved by the Commission as a long-term plan
6767-amendment under Section 16-111.5 of the Public Utilities
6768-Act. The Agency shall consider stakeholder feedback when
6769-making adjustments to the Adjustable Block design and
6770-shall notify stakeholders in advance of any planned
6771-changes.
6772-The Agency and its program administrators for both the
6773-Adjustable Block program and the Illinois Solar for All
6774-Program, consistent with the requirements of this
6775-subsection (c) and subsection (b) of Section 1-56 of this
6776-
6777-
6778-Act, shall propose the Adjustable Block program terms,
6779-conditions, and requirements, including the prices to be
6780-paid for renewable energy credits, where applicable, and
6781-requirements applicable to participating entities and
6782-project applications, through the development, review, and
6783-approval of the Agency's long-term renewable resources
6784-procurement plan described in this subsection (c) and
6785-paragraph (5) of subsection (b) of Section 16-111.5 of the
6786-Public Utilities Act. Terms, conditions, and requirements
6787-for program participation shall include the following:
6788-(i) The Agency shall establish a registration
6789-process for entities seeking to qualify for
6790-program-administered incentive funding and establish
6791-baseline qualifications for vendor approval. The
6792-Agency must maintain a list of approved entities on
6793-each program's website, and may revoke a vendor's
6794-ability to receive program-administered incentive
6795-funding status upon a determination that the vendor
6796-failed to comply with contract terms, the law, or
6797-other program requirements.
6798-(ii) The Agency shall establish program
6799-requirements and minimum contract terms to ensure
6800-projects are properly installed and produce their
6801-expected amounts of energy. Program requirements may
6802-include on-site inspections and photo documentation of
6803-projects under construction. The Agency may require
6804-
6805-
6806-repairs, alterations, or additions to remedy any
6807-material deficiencies discovered. Vendors who have a
6808-disproportionately high number of deficient systems
6809-may lose their eligibility to continue to receive
6810-State-administered incentive funding through Agency
6811-programs and procurements.
6812-(iii) To discourage deceptive marketing or other
6813-bad faith business practices, the Agency may require
6814-direct program participants, including agents
6815-operating on their behalf, to provide standardized
6816-disclosures to a customer prior to that customer's
6817-execution of a contract for the development of a
6818-distributed generation system or a subscription to a
6819-community solar project.
6820-(iv) The Agency shall establish one or multiple
6821-Consumer Complaints Centers to accept complaints
6822-regarding businesses that participate in, or otherwise
6823-benefit from, State-administered incentive funding
6824-through Agency-administered programs. The Agency shall
6825-maintain a public database of complaints with any
6826-confidential or particularly sensitive information
6827-redacted from public entries.
6828-(v) Through a filing in the proceeding for the
6829-approval of its long-term renewable energy resources
6830-procurement plan, the Agency shall provide an annual
6831-written report to the Illinois Commerce Commission
6832-
6833-
6834-documenting the frequency and nature of complaints and
6835-any enforcement actions taken in response to those
6836-complaints.
6837-(vi) The Agency shall schedule regular meetings
6838-with representatives of the Office of the Attorney
6839-General, the Illinois Commerce Commission, consumer
6840-protection groups, and other interested stakeholders
6841-to share relevant information about consumer
6842-protection, project compliance, and complaints
6843-received.
6844-(vii) To the extent that complaints received
6845-implicate the jurisdiction of the Office of the
6846-Attorney General, the Illinois Commerce Commission, or
6847-local, State, or federal law enforcement, the Agency
6848-shall also refer complaints to those entities as
6849-appropriate.
6850-(N) The Agency shall establish the terms, conditions,
6851-and program requirements for photovoltaic community
6852-renewable generation projects with a goal to expand access
6853-to a broader group of energy consumers, to ensure robust
6854-participation opportunities for residential and small
6855-commercial customers and those who cannot install
6856-renewable energy on their own properties. Subject to
6857-reasonable limitations, any plan approved by the
6858-Commission shall allow subscriptions to community
6859-renewable generation projects to be portable and
6860-
6861-
6862-transferable. For purposes of this subparagraph (N),
6863-"portable" means that subscriptions may be retained by the
6864-subscriber even if the subscriber relocates or changes its
6865-address within the same utility service territory; and
6866-"transferable" means that a subscriber may assign or sell
6867-subscriptions to another person within the same utility
6868-service territory.
6869-Through the development of its long-term renewable
6870-resources procurement plan, the Agency may consider
6871-whether community renewable generation projects utilizing
6872-technologies other than photovoltaics should be supported
6873-through State-administered incentive funding, and may
6874-issue requests for information to gauge market demand.
6875-Electric utilities shall provide a monetary credit to
6876-a subscriber's subsequent bill for service for the
6877-proportional output of a community renewable generation
6878-project attributable to that subscriber as specified in
6879-Section 16-107.5 of the Public Utilities Act.
6880-The Agency shall purchase renewable energy credits
6881-from subscribed shares of photovoltaic community renewable
6882-generation projects through the Adjustable Block program
6883-described in subparagraph (K) of this paragraph (1) or
6884-through the Illinois Solar for All Program described in
6885-Section 1-56 of this Act. The electric utility shall
6886-purchase any unsubscribed energy from community renewable
6887-generation projects that are Qualifying Facilities ("QF")
6888-
6889-
6890-under the electric utility's tariff for purchasing the
6891-output from QFs under Public Utilities Regulatory Policies
6892-Act of 1978.
6893-The owners of and any subscribers to a community
6894-renewable generation project shall not be considered
6895-public utilities or alternative retail electricity
6896-suppliers under the Public Utilities Act solely as a
6897-result of their interest in or subscription to a community
6898-renewable generation project and shall not be required to
6899-become an alternative retail electric supplier by
6900-participating in a community renewable generation project
6901-with a public utility.
6902-(O) For the delivery year beginning June 1, 2018, the
6903-long-term renewable resources procurement plan required by
6904-this subsection (c) shall provide for the Agency to
6905-procure contracts to continue offering the Illinois Solar
6906-for All Program described in subsection (b) of Section
6907-1-56 of this Act, and the contracts approved by the
6908-Commission shall be executed by the utilities that are
6909-subject to this subsection (c). The long-term renewable
6910-resources procurement plan shall allocate up to
6911-$50,000,000 per delivery year to fund the programs, and
6912-the plan shall determine the amount of funding to be
6913-apportioned to the programs identified in subsection (b)
6914-of Section 1-56 of this Act; provided that for the
6915-delivery years beginning June 1, 2021, June 1, 2022, and
6916-
6917-
6918-June 1, 2023, the long-term renewable resources
6919-procurement plan may average the annual budgets over a
6920-3-year period to account for program ramp-up. For the
6921-delivery years beginning June 1, 2021, June 1, 2024, June
6922-1, 2027, and June 1, 2030 and additional $10,000,000 shall
6923-be provided to the Department of Commerce and Economic
6924-Opportunity to implement the workforce development
6925-programs and reporting as outlined in Section 16-108.12 of
6926-the Public Utilities Act. In making the determinations
6927-required under this subparagraph (O), the Commission shall
6928-consider the experience and performance under the programs
6929-and any evaluation reports. The Commission shall also
6930-provide for an independent evaluation of those programs on
6931-a periodic basis that are funded under this subparagraph
6932-(O).
6933-(P) All programs and procurements under this
6934-subsection (c) shall be designed to encourage
6935-participating projects to use a diverse and equitable
6936-workforce and a diverse set of contractors, including
6937-minority-owned businesses, disadvantaged businesses,
6938-trade unions, graduates of any workforce training programs
6939-administered under this Act, and small businesses.
6940-The Agency shall develop a method to optimize
6941-procurement of renewable energy credits from proposed
6942-utility-scale projects that are located in communities
6943-eligible to receive Energy Transition Community Grants
6944-
6945-
6946-pursuant to Section 10-20 of the Energy Community
6947-Reinvestment Act. If this requirement conflicts with other
6948-provisions of law or the Agency determines that full
6949-compliance with the requirements of this subparagraph (P)
6950-would be unreasonably costly or administratively
6951-impractical, the Agency is to propose alternative
6952-approaches to achieve development of renewable energy
6953-resources in communities eligible to receive Energy
6954-Transition Community Grants pursuant to Section 10-20 of
6955-the Energy Community Reinvestment Act or seek an exemption
6956-from this requirement from the Commission.
6957-(Q) Each facility listed in subitems (i) through (ix)
6958-of item (1) of this subparagraph (Q) for which a renewable
6959-energy credit delivery contract is signed after the
6960-effective date of this amendatory Act of the 102nd General
6961-Assembly is subject to the following requirements through
6962-the Agency's long-term renewable resources procurement
6963-plan:
6964-(1) Each facility shall be subject to the
6965-prevailing wage requirements included in the
6966-Prevailing Wage Act. The Agency shall require
6967-verification that all construction performed on the
6968-facility by the renewable energy credit delivery
6969-contract holder, its contractors, or its
6970-subcontractors relating to construction of the
6971-facility is performed by construction employees
6972-
6973-
6974-receiving an amount for that work equal to or greater
6975-than the general prevailing rate, as that term is
6976-defined in Section 3 of the Prevailing Wage Act. For
6977-purposes of this item (1), "house of worship" means
6978-property that is both (1) used exclusively by a
6979-religious society or body of persons as a place for
6980-religious exercise or religious worship and (2)
6981-recognized as exempt from taxation pursuant to Section
6982-15-40 of the Property Tax Code. This item (1) shall
6983-apply to any the following:
6984-(i) all new utility-scale wind projects;
6985-(ii) all new utility-scale photovoltaic
6986-projects;
6987-(iii) all new brownfield photovoltaic
6988-projects;
6989-(iv) all new photovoltaic community renewable
6990-energy facilities that qualify for item (iii) of
6991-subparagraph (K) of this paragraph (1);
6992-(v) all new community driven community
6993-photovoltaic projects that qualify for item (v) of
6994-subparagraph (K) of this paragraph (1);
6995-(vi) all new photovoltaic projects on public
6996-school land distributed renewable energy
6997-generation devices on schools that qualify for
6998-item (iv) of subparagraph (K) of this paragraph
6999-(1);
7000-
7001-
7002-(vii) all new photovoltaic distributed
7003-renewable energy generation devices that (1)
7004-qualify for item (i) of subparagraph (K) of this
7005-paragraph (1); (2) are not projects that serve
7006-single-family or multi-family residential
7007-buildings; and (3) are not houses of worship where
7008-the aggregate capacity including collocated
7009-projects would not exceed 100 kilowatts;
7010-(viii) all new photovoltaic distributed
7011-renewable energy generation devices that (1)
7012-qualify for item (ii) of subparagraph (K) of this
7013-paragraph (1); (2) are not projects that serve
7014-single-family or multi-family residential
7015-buildings; and (3) are not houses of worship where
7016-the aggregate capacity including collocated
7017-projects would not exceed 100 kilowatts;
7018-(ix) all new, modernized, or retooled
7019-hydropower facilities.
7020-(2) Renewable energy credits procured from new
7021-utility-scale wind projects, new utility-scale solar
7022-projects, and new brownfield solar projects pursuant
7023-to Agency procurement events occurring after the
7024-effective date of this amendatory Act of the 102nd
7025-General Assembly must be from facilities built by
7026-general contractors that must enter into a project
7027-labor agreement, as defined by this Act, prior to
7028-
7029-
7030-construction. The project labor agreement shall be
7031-filed with the Director in accordance with procedures
7032-established by the Agency through its long-term
7033-renewable resources procurement plan. Any information
7034-submitted to the Agency in this item (2) shall be
7035-considered commercially sensitive information. At a
7036-minimum, the project labor agreement must provide the
7037-names, addresses, and occupations of the owner of the
7038-plant and the individuals representing the labor
7039-organization employees participating in the project
7040-labor agreement consistent with the Project Labor
7041-Agreements Act. The agreement must also specify the
7042-terms and conditions as defined by this Act.
7043-(3) It is the intent of this Section to ensure that
7044-economic development occurs across Illinois
7045-communities, that emerging businesses may grow, and
7046-that there is improved access to the clean energy
7047-economy by persons who have greater economic burdens
7048-to success. The Agency shall take into consideration
7049-the unique cost of compliance of this subparagraph (Q)
7050-that might be borne by equity eligible contractors,
7051-shall include such costs when determining the price of
7052-renewable energy credits in the Adjustable Block
7053-program, and shall take such costs into consideration
7054-in a nondiscriminatory manner when comparing bids for
7055-competitive procurements. The Agency shall consider
7056-
7057-
7058-costs associated with compliance whether in the
7059-development, financing, or construction of projects.
7060-The Agency shall periodically review the assumptions
7061-in these costs and may adjust prices, in compliance
7062-with subparagraph (M) of this paragraph (1).
7063-(R) In its long-term renewable resources procurement
7064-plan, the Agency shall establish a self-direct renewable
7065-portfolio standard compliance program for eligible
7066-self-direct customers that purchase renewable energy
7067-credits from utility-scale wind and solar projects through
7068-long-term agreements for purchase of renewable energy
7069-credits as described in this Section. Such long-term
7070-agreements may include the purchase of energy or other
7071-products on a physical or financial basis and may involve
7072-an alternative retail electric supplier as defined in
7073-Section 16-102 of the Public Utilities Act. This program
7074-shall take effect in the delivery year commencing June 1,
7075-2023.
7076-(1) For the purposes of this subparagraph:
7077-"Eligible self-direct customer" means any retail
7078-customers of an electric utility that serves 3,000,000
7079-or more retail customers in the State and whose total
7080-highest 30-minute demand was more than 10,000
7081-kilowatts, or any retail customers of an electric
7082-utility that serves less than 3,000,000 retail
7083-customers but more than 500,000 retail customers in
7084-
7085-
7086-the State and whose total highest 15-minute demand was
7087-more than 10,000 kilowatts.
7088-"Retail customer" has the meaning set forth in
7089-Section 16-102 of the Public Utilities Act and
7090-multiple retail customer accounts under the same
7091-corporate parent may aggregate their account demands
7092-to meet the 10,000 kilowatt threshold. The criteria
7093-for determining whether this subparagraph is
7094-applicable to a retail customer shall be based on the
7095-12 consecutive billing periods prior to the start of
7096-the year in which the application is filed.
7097-(2) For renewable energy credits to count toward
7098-the self-direct renewable portfolio standard
7099-compliance program, they must:
7100-(i) qualify as renewable energy credits as
7101-defined in Section 1-10 of this Act;
7102-(ii) be sourced from one or more renewable
7103-energy generating facilities that comply with the
7104-geographic requirements as set forth in
7105-subparagraph (I) of paragraph (1) of subsection
7106-(c) as interpreted through the Agency's long-term
7107-renewable resources procurement plan, or, where
7108-applicable, the geographic requirements that
7109-governed utility-scale renewable energy credits at
7110-the time the eligible self-direct customer entered
7111-into the applicable renewable energy credit
7112-
7113-
7114-purchase agreement;
7115-(iii) be procured through long-term contracts
7116-with term lengths of at least 10 years either
7117-directly with the renewable energy generating
7118-facility or through a bundled power purchase
7119-agreement, a virtual power purchase agreement, an
7120-agreement between the renewable generating
7121-facility, an alternative retail electric supplier,
7122-and the customer, or such other structure as is
7123-permissible under this subparagraph (R);
7124-(iv) be equivalent in volume to at least 40%
7125-of the eligible self-direct customer's usage,
7126-determined annually by the eligible self-direct
7127-customer's usage during the previous delivery
7128-year, measured to the nearest megawatt-hour;
7129-(v) be retired by or on behalf of the large
7130-energy customer;
7131-(vi) be sourced from new utility-scale wind
7132-projects or new utility-scale solar projects; and
7133-(vii) if the contracts for renewable energy
7134-credits are entered into after the effective date
7135-of this amendatory Act of the 102nd General
7136-Assembly, the new utility-scale wind projects or
7137-new utility-scale solar projects must comply with
7138-the requirements established in subparagraphs (P)
7139-and (Q) of paragraph (1) of this subsection (c)
7140-
7141-
7142-and subsection (c-10).
7143-(3) The self-direct renewable portfolio standard
7144-compliance program shall be designed to allow eligible
7145-self-direct customers to procure new renewable energy
7146-credits from new utility-scale wind projects or new
7147-utility-scale photovoltaic projects. The Agency shall
7148-annually determine the amount of utility-scale
7149-renewable energy credits it will include each year
7150-from the self-direct renewable portfolio standard
7151-compliance program, subject to receiving qualifying
7152-applications. In making this determination, the Agency
7153-shall evaluate publicly available analyses and studies
7154-of the potential market size for utility-scale
7155-renewable energy long-term purchase agreements by
7156-commercial and industrial energy customers and make
7157-that report publicly available. If demand for
7158-participation in the self-direct renewable portfolio
7159-standard compliance program exceeds availability, the
7160-Agency shall ensure participation is evenly split
7161-between commercial and industrial users to the extent
7162-there is sufficient demand from both customer classes.
7163-Each renewable energy credit procured pursuant to this
7164-subparagraph (R) by a self-direct customer shall
7165-reduce the total volume of renewable energy credits
7166-the Agency is otherwise required to procure from new
7167-utility-scale projects pursuant to subparagraph (C) of
7168-
7169-
7170-paragraph (1) of this subsection (c) on behalf of
7171-contracting utilities where the eligible self-direct
7172-customer is located. The self-direct customer shall
7173-file an annual compliance report with the Agency
7174-pursuant to terms established by the Agency through
7175-its long-term renewable resources procurement plan to
7176-be eligible for participation in this program.
7177-Customers must provide the Agency with their most
7178-recent electricity billing statements or other
7179-information deemed necessary by the Agency to
7180-demonstrate they are an eligible self-direct customer.
7181-(4) The Commission shall approve a reduction in
7182-the volumetric charges collected pursuant to Section
7183-16-108 of the Public Utilities Act for approved
7184-eligible self-direct customers equivalent to the
7185-anticipated cost of renewable energy credit deliveries
7186-under contracts for new utility-scale wind and new
7187-utility-scale solar entered for each delivery year
7188-after the large energy customer begins retiring
7189-eligible new utility scale renewable energy credits
7190-for self-compliance. The self-direct credit amount
7191-shall be determined annually and is equal to the
7192-estimated portion of the cost authorized by
7193-subparagraph (E) of paragraph (1) of this subsection
7194-(c) that supported the annual procurement of
7195-utility-scale renewable energy credits in the prior
7196-
7197-
7198-delivery year using a methodology described in the
7199-long-term renewable resources procurement plan,
7200-expressed on a per kilowatthour basis, and does not
7201-include (i) costs associated with any contracts
7202-entered into before the delivery year in which the
7203-customer files the initial compliance report to be
7204-eligible for participation in the self-direct program,
7205-and (ii) costs associated with procuring renewable
7206-energy credits through existing and future contracts
7207-through the Adjustable Block Program, subsection (c-5)
7208-of this Section 1-75, and the Solar for All Program.
7209-The Agency shall assist the Commission in determining
7210-the current and future costs. The Agency must
7211-determine the self-direct credit amount for new and
7212-existing eligible self-direct customers and submit
7213-this to the Commission in an annual compliance filing.
7214-The Commission must approve the self-direct credit
7215-amount by June 1, 2023 and June 1 of each delivery year
7216-thereafter.
7217-(5) Customers described in this subparagraph (R)
7218-shall apply, on a form developed by the Agency, to the
7219-Agency to be designated as a self-direct eligible
7220-customer. Once the Agency determines that a
7221-self-direct customer is eligible for participation in
7222-the program, the self-direct customer will remain
7223-eligible until the end of the term of the contract.
7224-
7225-
7226-Thereafter, application may be made not less than 12
7227-months before the filing date of the long-term
7228-renewable resources procurement plan described in this
7229-Act. At a minimum, such application shall contain the
7230-following:
7231-(i) the customer's certification that, at the
7232-time of the customer's application, the customer
7233-qualifies to be a self-direct eligible customer,
7234-including documents demonstrating that
7235-qualification;
7236-(ii) the customer's certification that the
7237-customer has entered into or will enter into by
7238-the beginning of the applicable procurement year,
7239-one or more bilateral contracts for new wind
7240-projects or new photovoltaic projects, including
7241-supporting documentation;
7242-(iii) certification that the contract or
7243-contracts for new renewable energy resources are
7244-long-term contracts with term lengths of at least
7245-10 years, including supporting documentation;
7246-(iv) certification of the quantities of
7247-renewable energy credits that the customer will
7248-purchase each year under such contract or
7249-contracts, including supporting documentation;
7250-(v) proof that the contract is sufficient to
7251-produce renewable energy credits to be equivalent
7252-
7253-
7254-in volume to at least 40% of the large energy
7255-customer's usage from the previous delivery year,
7256-measured to the nearest megawatt-hour; and
7257-(vi) certification that the customer intends
7258-to maintain the contract for the duration of the
7259-length of the contract.
7260-(6) If a customer receives the self-direct credit
7261-but fails to properly procure and retire renewable
7262-energy credits as required under this subparagraph
7263-(R), the Commission, on petition from the Agency and
7264-after notice and hearing, may direct such customer's
7265-utility to recover the cost of the wrongfully received
7266-self-direct credits plus interest through an adder to
7267-charges assessed pursuant to Section 16-108 of the
7268-Public Utilities Act. Self-direct customers who
7269-knowingly fail to properly procure and retire
7270-renewable energy credits and do not notify the Agency
7271-are ineligible for continued participation in the
7272-self-direct renewable portfolio standard compliance
7273-program.
7274-(2) (Blank).
7275-(3) (Blank).
7276-(4) The electric utility shall retire all renewable
7277-energy credits used to comply with the standard.
7278-(5) Beginning with the 2010 delivery year and ending
7279-June 1, 2017, an electric utility subject to this
7280-
7281-
7282-subsection (c) shall apply the lesser of the maximum
7283-alternative compliance payment rate or the most recent
7284-estimated alternative compliance payment rate for its
7285-service territory for the corresponding compliance period,
7286-established pursuant to subsection (d) of Section 16-115D
7287-of the Public Utilities Act to its retail customers that
7288-take service pursuant to the electric utility's hourly
7289-pricing tariff or tariffs. The electric utility shall
7290-retain all amounts collected as a result of the
7291-application of the alternative compliance payment rate or
7292-rates to such customers, and, beginning in 2011, the
7293-utility shall include in the information provided under
7294-item (1) of subsection (d) of Section 16-111.5 of the
7295-Public Utilities Act the amounts collected under the
7296-alternative compliance payment rate or rates for the prior
7297-year ending May 31. Notwithstanding any limitation on the
7298-procurement of renewable energy resources imposed by item
7299-(2) of this subsection (c), the Agency shall increase its
7300-spending on the purchase of renewable energy resources to
7301-be procured by the electric utility for the next plan year
7302-by an amount equal to the amounts collected by the utility
7303-under the alternative compliance payment rate or rates in
7304-the prior year ending May 31.
7305-(6) The electric utility shall be entitled to recover
7306-all of its costs associated with the procurement of
7307-renewable energy credits under plans approved under this
7308-
7309-
7310-Section and Section 16-111.5 of the Public Utilities Act.
7311-These costs shall include associated reasonable expenses
7312-for implementing the procurement programs, including, but
7313-not limited to, the costs of administering and evaluating
7314-the Adjustable Block program, through an automatic
7315-adjustment clause tariff in accordance with subsection (k)
7316-of Section 16-108 of the Public Utilities Act.
7317-(7) Renewable energy credits procured from new
7318-photovoltaic projects or new distributed renewable energy
7319-generation devices under this Section after June 1, 2017
7320-(the effective date of Public Act 99-906) must be procured
7321-from devices installed by a qualified person in compliance
7322-with the requirements of Section 16-128A of the Public
7323-Utilities Act and any rules or regulations adopted
7324-thereunder.
7325-In meeting the renewable energy requirements of this
7326-subsection (c), to the extent feasible and consistent with
7327-State and federal law, the renewable energy credit
7328-procurements, Adjustable Block solar program, and
7329-community renewable generation program shall provide
7330-employment opportunities for all segments of the
7331-population and workforce, including minority-owned and
7332-female-owned business enterprises, and shall not,
7333-consistent with State and federal law, discriminate based
7334-on race or socioeconomic status.
7335-(c-5) Procurement of renewable energy credits from new
7336-
7337-
7338-renewable energy facilities installed at or adjacent to the
7339-sites of electric generating facilities that burn or burned
7340-coal as their primary fuel source.
7341-(1) In addition to the procurement of renewable energy
7342-credits pursuant to long-term renewable resources
7343-procurement plans in accordance with subsection (c) of
7344-this Section and Section 16-111.5 of the Public Utilities
7345-Act, the Agency shall conduct procurement events in
7346-accordance with this subsection (c-5) for the procurement
7347-by electric utilities that served more than 300,000 retail
7348-customers in this State as of January 1, 2019 of renewable
7349-energy credits from new renewable energy facilities to be
7350-installed at or adjacent to the sites of electric
7351-generating facilities that, as of January 1, 2016, burned
7352-coal as their primary fuel source and meet the other
7353-criteria specified in this subsection (c-5). For purposes
7354-of this subsection (c-5), "new renewable energy facility"
7355-means a new utility-scale solar project as defined in this
7356-Section 1-75. The renewable energy credits procured
7357-pursuant to this subsection (c-5) may be included or
7358-counted for purposes of compliance with the amounts of
7359-renewable energy credits required to be procured pursuant
7360-to subsection (c) of this Section to the extent that there
7361-are otherwise shortfalls in compliance with such
7362-requirements. The procurement of renewable energy credits
7363-by electric utilities pursuant to this subsection (c-5)
7364-
7365-
7366-shall be funded solely by revenues collected from the Coal
7367-to Solar and Energy Storage Initiative Charge provided for
7368-in this subsection (c-5) and subsection (i-5) of Section
7369-16-108 of the Public Utilities Act, shall not be funded by
7370-revenues collected through any of the other funding
7371-mechanisms provided for in subsection (c) of this Section,
7372-and shall not be subject to the limitation imposed by
7373-subsection (c) on charges to retail customers for costs to
7374-procure renewable energy resources pursuant to subsection
7375-(c), and shall not be subject to any other requirements or
7376-limitations of subsection (c).
7377-(2) The Agency shall conduct 2 procurement events to
7378-select owners of electric generating facilities meeting
7379-the eligibility criteria specified in this subsection
7380-(c-5) to enter into long-term contracts to sell renewable
7381-energy credits to electric utilities serving more than
7382-300,000 retail customers in this State as of January 1,
7383-2019. The first procurement event shall be conducted no
7384-later than March 31, 2022, unless the Agency elects to
7385-delay it, until no later than May 1, 2022, due to its
7386-overall volume of work, and shall be to select owners of
7387-electric generating facilities located in this State and
7388-south of federal Interstate Highway 80 that meet the
7389-eligibility criteria specified in this subsection (c-5).
7390-The second procurement event shall be conducted no sooner
7391-than September 30, 2022 and no later than October 31, 2022
7392-
7393-
7394-and shall be to select owners of electric generating
7395-facilities located anywhere in this State that meet the
7396-eligibility criteria specified in this subsection (c-5).
7397-The Agency shall establish and announce a time period,
7398-which shall begin no later than 30 days prior to the
7399-scheduled date for the procurement event, during which
7400-applicants may submit applications to be selected as
7401-suppliers of renewable energy credits pursuant to this
7402-subsection (c-5). The eligibility criteria for selection
7403-as a supplier of renewable energy credits pursuant to this
7404-subsection (c-5) shall be as follows:
7405-(A) The applicant owns an electric generating
7406-facility located in this State that: (i) as of January
7407-1, 2016, burned coal as its primary fuel to generate
7408-electricity; and (ii) has, or had prior to retirement,
7409-an electric generating capacity of at least 150
7410-megawatts. The electric generating facility can be
7411-either: (i) retired as of the date of the procurement
7412-event; or (ii) still operating as of the date of the
7413-procurement event.
7414-(B) The applicant is not (i) an electric
7415-cooperative as defined in Section 3-119 of the Public
7416-Utilities Act, or (ii) an entity described in
7417-subsection (b)(1) of Section 3-105 of the Public
7418-Utilities Act, or an association or consortium of or
7419-an entity owned by entities described in (i) or (ii);
7420-
7421-
7422-and the coal-fueled electric generating facility was
7423-at one time owned, in whole or in part, by a public
7424-utility as defined in Section 3-105 of the Public
7425-Utilities Act.
7426-(C) If participating in the first procurement
7427-event, the applicant proposes and commits to construct
7428-and operate, at the site, and if necessary for
7429-sufficient space on property adjacent to the existing
7430-property, at which the electric generating facility
7431-identified in paragraph (A) is located: (i) a new
7432-renewable energy facility of at least 20 megawatts but
7433-no more than 100 megawatts of electric generating
7434-capacity, and (ii) an energy storage facility having a
7435-storage capacity equal to at least 2 megawatts and at
7436-most 10 megawatts. If participating in the second
7437-procurement event, the applicant proposes and commits
7438-to construct and operate, at the site, and if
7439-necessary for sufficient space on property adjacent to
7440-the existing property, at which the electric
7441-generating facility identified in paragraph (A) is
7442-located: (i) a new renewable energy facility of at
7443-least 5 megawatts but no more than 20 megawatts of
7444-electric generating capacity, and (ii) an energy
7445-storage facility having a storage capacity equal to at
7446-least 0.5 megawatts and at most one megawatt.
7447-(D) The applicant agrees that the new renewable
7448-
7449-
7450-energy facility and the energy storage facility will
7451-be constructed or installed by a qualified entity or
7452-entities in compliance with the requirements of
7453-subsection (g) of Section 16-128A of the Public
7454-Utilities Act and any rules adopted thereunder.
7455-(E) The applicant agrees that personnel operating
7456-the new renewable energy facility and the energy
7457-storage facility will have the requisite skills,
7458-knowledge, training, experience, and competence, which
7459-may be demonstrated by completion or current
7460-participation and ultimate completion by employees of
7461-an accredited or otherwise recognized apprenticeship
7462-program for the employee's particular craft, trade, or
7463-skill, including through training and education
7464-courses and opportunities offered by the owner to
7465-employees of the coal-fueled electric generating
7466-facility or by previous employment experience
7467-performing the employee's particular work skill or
7468-function.
7469-(F) The applicant commits that not less than the
7470-prevailing wage, as determined pursuant to the
7471-Prevailing Wage Act, will be paid to the applicant's
7472-employees engaged in construction activities
7473-associated with the new renewable energy facility and
7474-the new energy storage facility and to the employees
7475-of applicant's contractors engaged in construction
7476-
7477-
7478-activities associated with the new renewable energy
7479-facility and the new energy storage facility, and
7480-that, on or before the commercial operation date of
7481-the new renewable energy facility, the applicant shall
7482-file a report with the Agency certifying that the
7483-requirements of this subparagraph (F) have been met.
7484-(G) The applicant commits that if selected, it
7485-will negotiate a project labor agreement for the
7486-construction of the new renewable energy facility and
7487-associated energy storage facility that includes
7488-provisions requiring the parties to the agreement to
7489-work together to establish diversity threshold
7490-requirements and to ensure best efforts to meet
7491-diversity targets, improve diversity at the applicable
7492-job site, create diverse apprenticeship opportunities,
7493-and create opportunities to employ former coal-fired
7494-power plant workers.
7495-(H) The applicant commits to enter into a contract
7496-or contracts for the applicable duration to provide
7497-specified numbers of renewable energy credits each
7498-year from the new renewable energy facility to
7499-electric utilities that served more than 300,000
7500-retail customers in this State as of January 1, 2019,
7501-at a price of $30 per renewable energy credit. The
7502-price per renewable energy credit shall be fixed at
7503-$30 for the applicable duration and the renewable
7504-
7505-
7506-energy credits shall not be indexed renewable energy
7507-credits as provided for in item (v) of subparagraph
7508-(G) of paragraph (1) of subsection (c) of Section 1-75
7509-of this Act. The applicable duration of each contract
7510-shall be 20 years, unless the applicant is physically
7511-interconnected to the PJM Interconnection, LLC
7512-transmission grid and had a generating capacity of at
7513-least 1,200 megawatts as of January 1, 2021, in which
7514-case the applicable duration of the contract shall be
7515-15 years.
7516-(I) The applicant's application is certified by an
7517-officer of the applicant and by an officer of the
7518-applicant's ultimate parent company, if any.
7519-(3) An applicant may submit applications to contract
7520-to supply renewable energy credits from more than one new
7521-renewable energy facility to be constructed at or adjacent
7522-to one or more qualifying electric generating facilities
7523-owned by the applicant. The Agency may select new
7524-renewable energy facilities to be located at or adjacent
7525-to the sites of more than one qualifying electric
7526-generation facility owned by an applicant to contract with
7527-electric utilities to supply renewable energy credits from
7528-such facilities.
7529-(4) The Agency shall assess fees to each applicant to
7530-recover the Agency's costs incurred in receiving and
7531-evaluating applications, conducting the procurement event,
7532-
7533-
7534-developing contracts for sale, delivery and purchase of
7535-renewable energy credits, and monitoring the
7536-administration of such contracts, as provided for in this
7537-subsection (c-5), including fees paid to a procurement
7538-administrator retained by the Agency for one or more of
7539-these purposes.
7540-(5) The Agency shall select the applicants and the new
7541-renewable energy facilities to contract with electric
7542-utilities to supply renewable energy credits in accordance
7543-with this subsection (c-5). In the first procurement
7544-event, the Agency shall select applicants and new
7545-renewable energy facilities to supply renewable energy
7546-credits, at a price of $30 per renewable energy credit,
7547-aggregating to no less than 400,000 renewable energy
7548-credits per year for the applicable duration, assuming
7549-sufficient qualifying applications to supply, in the
7550-aggregate, at least that amount of renewable energy
7551-credits per year; and not more than 580,000 renewable
7552-energy credits per year for the applicable duration. In
7553-the second procurement event, the Agency shall select
7554-applicants and new renewable energy facilities to supply
7555-renewable energy credits, at a price of $30 per renewable
7556-energy credit, aggregating to no more than 625,000
7557-renewable energy credits per year less the amount of
7558-renewable energy credits each year contracted for as a
7559-result of the first procurement event, for the applicable
7560-
7561-
7562-durations. The number of renewable energy credits to be
7563-procured as specified in this paragraph (5) shall not be
7564-reduced based on renewable energy credits procured in the
7565-self-direct renewable energy credit compliance program
7566-established pursuant to subparagraph (R) of paragraph (1)
7567-of subsection (c) of Section 1-75.
7568-(6) The obligation to purchase renewable energy
7569-credits from the applicants and their new renewable energy
7570-facilities selected by the Agency shall be allocated to
7571-the electric utilities based on their respective
7572-percentages of kilowatthours delivered to delivery
7573-services customers to the aggregate kilowatthour
7574-deliveries by the electric utilities to delivery services
7575-customers for the year ended December 31, 2021. In order
7576-to achieve these allocation percentages between or among
7577-the electric utilities, the Agency shall require each
7578-applicant that is selected in the procurement event to
7579-enter into a contract with each electric utility for the
7580-sale and purchase of renewable energy credits from each
7581-new renewable energy facility to be constructed and
7582-operated by the applicant, with the sale and purchase
7583-obligations under the contracts to aggregate to the total
7584-number of renewable energy credits per year to be supplied
7585-by the applicant from the new renewable energy facility.
7586-(7) The Agency shall submit its proposed selection of
7587-applicants, new renewable energy facilities to be
7588-
7589-
7590-constructed, and renewable energy credit amounts for each
7591-procurement event to the Commission for approval. The
7592-Commission shall, within 2 business days after receipt of
7593-the Agency's proposed selections, approve the proposed
7594-selections if it determines that the applicants and the
7595-new renewable energy facilities to be constructed meet the
7596-selection criteria set forth in this subsection (c-5) and
7597-that the Agency seeks approval for contracts of applicable
7598-durations aggregating to no more than the maximum amount
7599-of renewable energy credits per year authorized by this
7600-subsection (c-5) for the procurement event, at a price of
7601-$30 per renewable energy credit.
7602-(8) The Agency, in conjunction with its procurement
7603-administrator if one is retained, the electric utilities,
7604-and potential applicants for contracts to produce and
7605-supply renewable energy credits pursuant to this
7606-subsection (c-5), shall develop a standard form contract
7607-for the sale, delivery and purchase of renewable energy
7608-credits pursuant to this subsection (c-5). Each contract
7609-resulting from the first procurement event shall allow for
7610-a commercial operation date for the new renewable energy
7611-facility of either June 1, 2023 or June 1, 2024, with such
7612-dates subject to adjustment as provided in this paragraph.
7613-Each contract resulting from the second procurement event
7614-shall provide for a commercial operation date on June 1
7615-next occurring up to 48 months after execution of the
7616-
7617-
7618-contract. Each contract shall provide that the owner shall
7619-receive payments for renewable energy credits for the
7620-applicable durations beginning with the commercial
7621-operation date of the new renewable energy facility. The
7622-form contract shall provide for adjustments to the
7623-commercial operation and payment start dates as needed due
7624-to any delays in completing the procurement and
7625-contracting processes, in finalizing interconnection
7626-agreements and installing interconnection facilities, and
7627-in obtaining other necessary governmental permits and
7628-approvals. The form contract shall be, to the maximum
7629-extent possible, consistent with standard electric
7630-industry contracts for sale, delivery, and purchase of
7631-renewable energy credits while taking into account the
7632-specific requirements of this subsection (c-5). The form
7633-contract shall provide for over-delivery and
7634-under-delivery of renewable energy credits within
7635-reasonable ranges during each 12-month period and penalty,
7636-default, and enforcement provisions for failure of the
7637-selling party to deliver renewable energy credits as
7638-specified in the contract and to comply with the
7639-requirements of this subsection (c-5). The standard form
7640-contract shall specify that all renewable energy credits
7641-delivered to the electric utility pursuant to the contract
7642-shall be retired. The Agency shall make the proposed
7643-contracts available for a reasonable period for comment by
7644-
7645-
7646-potential applicants, and shall publish the final form
7647-contract at least 30 days before the date of the first
7648-procurement event.
7649-(9) Coal to Solar and Energy Storage Initiative
7650-Charge.
7651-(A) By no later than July 1, 2022, each electric
7652-utility that served more than 300,000 retail customers
7653-in this State as of January 1, 2019 shall file a tariff
7654-with the Commission for the billing and collection of
7655-a Coal to Solar and Energy Storage Initiative Charge
7656-in accordance with subsection (i-5) of Section 16-108
7657-of the Public Utilities Act, with such tariff to be
7658-effective, following review and approval or
7659-modification by the Commission, beginning January 1,
7660-2023. The tariff shall provide for the calculation and
7661-setting of the electric utility's Coal to Solar and
7662-Energy Storage Initiative Charge to collect revenues
7663-estimated to be sufficient, in the aggregate, (i) to
7664-enable the electric utility to pay for the renewable
7665-energy credits it has contracted to purchase in the
7666-delivery year beginning June 1, 2023 and each delivery
7667-year thereafter from new renewable energy facilities
7668-located at the sites of qualifying electric generating
7669-facilities, and (ii) to fund the grant payments to be
7670-made in each delivery year by the Department of
7671-Commerce and Economic Opportunity, or any successor
7672-
7673-
7674-department or agency, which shall be referred to in
7675-this subsection (c-5) as the Department, pursuant to
7676-paragraph (10) of this subsection (c-5). The electric
7677-utility's tariff shall provide for the billing and
7678-collection of the Coal to Solar and Energy Storage
7679-Initiative Charge on each kilowatthour of electricity
7680-delivered to its delivery services customers within
7681-its service territory and shall provide for an annual
7682-reconciliation of revenues collected with actual
7683-costs, in accordance with subsection (i-5) of Section
7684-16-108 of the Public Utilities Act.
7685-(B) Each electric utility shall remit on a monthly
7686-basis to the State Treasurer, for deposit in the Coal
7687-to Solar and Energy Storage Initiative Fund provided
7688-for in this subsection (c-5), the electric utility's
7689-collections of the Coal to Solar and Energy Storage
7690-Initiative Charge in the amount estimated to be needed
7691-by the Department for grant payments pursuant to grant
7692-contracts entered into by the Department pursuant to
7693-paragraph (10) of this subsection (c-5).
7694-(10) Coal to Solar and Energy Storage Initiative Fund.
7695-(A) The Coal to Solar and Energy Storage
7696-Initiative Fund is established as a special fund in
7697-the State treasury. The Coal to Solar and Energy
7698-Storage Initiative Fund is authorized to receive, by
7699-statutory deposit, that portion specified in item (B)
7700-
7701-
7702-of paragraph (9) of this subsection (c-5) of moneys
7703-collected by electric utilities through imposition of
7704-the Coal to Solar and Energy Storage Initiative Charge
7705-required by this subsection (c-5). The Coal to Solar
7706-and Energy Storage Initiative Fund shall be
7707-administered by the Department to provide grants to
7708-support the installation and operation of energy
7709-storage facilities at the sites of qualifying electric
7710-generating facilities meeting the criteria specified
7711-in this paragraph (10).
7712-(B) The Coal to Solar and Energy Storage
7713-Initiative Fund shall not be subject to sweeps,
7714-administrative charges, or chargebacks, including, but
7715-not limited to, those authorized under Section 8h of
7716-the State Finance Act, that would in any way result in
7717-the transfer of those funds from the Coal to Solar and
7718-Energy Storage Initiative Fund to any other fund of
7719-this State or in having any such funds utilized for any
7720-purpose other than the express purposes set forth in
7721-this paragraph (10).
7722-(C) The Department shall utilize up to
7723-$280,500,000 in the Coal to Solar and Energy Storage
7724-Initiative Fund for grants, assuming sufficient
7725-qualifying applicants, to support installation of
7726-energy storage facilities at the sites of up to 3
7727-qualifying electric generating facilities located in
7728-
7729-
7730-the Midcontinent Independent System Operator, Inc.,
7731-region in Illinois and the sites of up to 2 qualifying
7732-electric generating facilities located in the PJM
7733-Interconnection, LLC region in Illinois that meet the
7734-criteria set forth in this subparagraph (C). The
7735-criteria for receipt of a grant pursuant to this
7736-subparagraph (C) are as follows:
7737-(1) the electric generating facility at the
7738-site has, or had prior to retirement, an electric
7739-generating capacity of at least 150 megawatts;
7740-(2) the electric generating facility burns (or
7741-burned prior to retirement) coal as its primary
7742-source of fuel;
7743-(3) if the electric generating facility is
7744-retired, it was retired subsequent to January 1,
7745-2016;
7746-(4) the owner of the electric generating
7747-facility has not been selected by the Agency
7748-pursuant to this subsection (c-5) of this Section
7749-to enter into a contract to sell renewable energy
7750-credits to one or more electric utilities from a
7751-new renewable energy facility located or to be
7752-located at or adjacent to the site at which the
7753-electric generating facility is located;
7754-(5) the electric generating facility located
7755-at the site was at one time owned, in whole or in
7756-
7757-
7758-part, by a public utility as defined in Section
7759-3-105 of the Public Utilities Act;
7760-(6) the electric generating facility at the
7761-site is not owned by (i) an electric cooperative
7762-as defined in Section 3-119 of the Public
7763-Utilities Act, or (ii) an entity described in
7764-subsection (b)(1) of Section 3-105 of the Public
7765-Utilities Act, or an association or consortium of
7766-or an entity owned by entities described in items
7767-(i) or (ii);
7768-(7) the proposed energy storage facility at
7769-the site will have energy storage capacity of at
7770-least 37 megawatts;
7771-(8) the owner commits to place the energy
7772-storage facility into commercial operation on
7773-either June 1, 2023, June 1, 2024, or June 1, 2025,
7774-with such date subject to adjustment as needed due
7775-to any delays in completing the grant contracting
7776-process, in finalizing interconnection agreements
7777-and in installing interconnection facilities, and
7778-in obtaining necessary governmental permits and
7779-approvals;
7780-(9) the owner agrees that the new energy
7781-storage facility will be constructed or installed
7782-by a qualified entity or entities consistent with
7783-the requirements of subsection (g) of Section
7784-
7785-
7786-16-128A of the Public Utilities Act and any rules
7787-adopted under that Section;
7788-(10) the owner agrees that personnel operating
7789-the energy storage facility will have the
7790-requisite skills, knowledge, training, experience,
7791-and competence, which may be demonstrated by
7792-completion or current participation and ultimate
7793-completion by employees of an accredited or
7794-otherwise recognized apprenticeship program for
7795-the employee's particular craft, trade, or skill,
7796-including through training and education courses
7797-and opportunities offered by the owner to
7798-employees of the coal-fueled electric generating
7799-facility or by previous employment experience
7800-performing the employee's particular work skill or
7801-function;
7802-(11) the owner commits that not less than the
7803-prevailing wage, as determined pursuant to the
7804-Prevailing Wage Act, will be paid to the owner's
7805-employees engaged in construction activities
7806-associated with the new energy storage facility
7807-and to the employees of the owner's contractors
7808-engaged in construction activities associated with
7809-the new energy storage facility, and that, on or
7810-before the commercial operation date of the new
7811-energy storage facility, the owner shall file a
7812-
7813-
7814-report with the Department certifying that the
7815-requirements of this subparagraph (11) have been
7816-met; and
7817-(12) the owner commits that if selected to
7818-receive a grant, it will negotiate a project labor
7819-agreement for the construction of the new energy
7820-storage facility that includes provisions
7821-requiring the parties to the agreement to work
7822-together to establish diversity threshold
7823-requirements and to ensure best efforts to meet
7824-diversity targets, improve diversity at the
7825-applicable job site, create diverse apprenticeship
7826-opportunities, and create opportunities to employ
7827-former coal-fired power plant workers.
7828-The Department shall accept applications for this
7829-grant program until March 31, 2022 and shall announce
7830-the award of grants no later than June 1, 2022. The
7831-Department shall make the grant payments to a
7832-recipient in equal annual amounts for 10 years
7833-following the date the energy storage facility is
7834-placed into commercial operation. The annual grant
7835-payments to a qualifying energy storage facility shall
7836-be $110,000 per megawatt of energy storage capacity,
7837-with total annual grant payments pursuant to this
7838-subparagraph (C) for qualifying energy storage
7839-facilities not to exceed $28,050,000 in any year.
7840-
7841-
7842-(D) Grants of funding for energy storage
7843-facilities pursuant to subparagraph (C) of this
7844-paragraph (10), from the Coal to Solar and Energy
7845-Storage Initiative Fund, shall be memorialized in
7846-grant contracts between the Department and the
7847-recipient. The grant contracts shall specify the date
7848-or dates in each year on which the annual grant
7849-payments shall be paid.
7850-(E) All disbursements from the Coal to Solar and
7851-Energy Storage Initiative Fund shall be made only upon
7852-warrants of the Comptroller drawn upon the Treasurer
7853-as custodian of the Fund upon vouchers signed by the
7854-Director of the Department or by the person or persons
7855-designated by the Director of the Department for that
7856-purpose. The Comptroller is authorized to draw the
7857-warrants upon vouchers so signed. The Treasurer shall
7858-accept all written warrants so signed and shall be
7859-released from liability for all payments made on those
7860-warrants.
7861-(11) Diversity, equity, and inclusion plans.
7862-(A) Each applicant selected in a procurement event
7863-to contract to supply renewable energy credits in
7864-accordance with this subsection (c-5) and each owner
7865-selected by the Department to receive a grant or
7866-grants to support the construction and operation of a
7867-new energy storage facility or facilities in
7868-
7869-
7870-accordance with this subsection (c-5) shall, within 60
7871-days following the Commission's approval of the
7872-applicant to contract to supply renewable energy
7873-credits or within 60 days following execution of a
7874-grant contract with the Department, as applicable,
7875-submit to the Commission a diversity, equity, and
7876-inclusion plan setting forth the applicant's or
7877-owner's numeric goals for the diversity composition of
7878-its supplier entities for the new renewable energy
7879-facility or new energy storage facility, as
7880-applicable, which shall be referred to for purposes of
7881-this paragraph (11) as the project, and the
7882-applicant's or owner's action plan and schedule for
7883-achieving those goals.
7884-(B) For purposes of this paragraph (11), diversity
7885-composition shall be based on the percentage, which
7886-shall be a minimum of 25%, of eligible expenditures
7887-for contract awards for materials and services (which
7888-shall be defined in the plan) to business enterprises
7889-owned by minority persons, women, or persons with
7890-disabilities as defined in Section 2 of the Business
7891-Enterprise for Minorities, Women, and Persons with
7892-Disabilities Act, to LGBTQ business enterprises, to
7893-veteran-owned business enterprises, and to business
7894-enterprises located in environmental justice
7895-communities. The diversity composition goals of the
7896-
7897-
7898-plan may include eligible expenditures in areas for
7899-vendor or supplier opportunities in addition to
7900-development and construction of the project, and may
7901-exclude from eligible expenditures materials and
7902-services with limited market availability, limited
7903-production and availability from suppliers in the
7904-United States, such as solar panels and storage
7905-batteries, and material and services that are subject
7906-to critical energy infrastructure or cybersecurity
7907-requirements or restrictions. The plan may provide
7908-that the diversity composition goals may be met
7909-through Tier 1 Direct or Tier 2 subcontracting
7910-expenditures or a combination thereof for the project.
7911-(C) The plan shall provide for, but not be limited
7912-to: (i) internal initiatives, including multi-tier
7913-initiatives, by the applicant or owner, or by its
7914-engineering, procurement and construction contractor
7915-if one is used for the project, which for purposes of
7916-this paragraph (11) shall be referred to as the EPC
7917-contractor, to enable diverse businesses to be
7918-considered fairly for selection to provide materials
7919-and services; (ii) requirements for the applicant or
7920-owner or its EPC contractor to proactively solicit and
7921-utilize diverse businesses to provide materials and
7922-services; and (iii) requirements for the applicant or
7923-owner or its EPC contractor to hire a diverse
7924-
7925-
7926-workforce for the project. The plan shall include a
7927-description of the applicant's or owner's diversity
7928-recruiting efforts both for the project and for other
7929-areas of the applicant's or owner's business
7930-operations. The plan shall provide for the imposition
7931-of financial penalties on the applicant's or owner's
7932-EPC contractor for failure to exercise best efforts to
7933-comply with and execute the EPC contractor's diversity
7934-obligations under the plan. The plan may provide for
7935-the applicant or owner to set aside a portion of the
7936-work on the project to serve as an incubation program
7937-for qualified businesses, as specified in the plan,
7938-owned by minority persons, women, persons with
7939-disabilities, LGBTQ persons, and veterans, and
7940-businesses located in environmental justice
7941-communities, seeking to enter the renewable energy
7942-industry.
7943-(D) The applicant or owner may submit a revised or
7944-updated plan to the Commission from time to time as
7945-circumstances warrant. The applicant or owner shall
7946-file annual reports with the Commission detailing the
7947-applicant's or owner's progress in implementing its
7948-plan and achieving its goals and any modifications the
7949-applicant or owner has made to its plan to better
7950-achieve its diversity, equity and inclusion goals. The
7951-applicant or owner shall file a final report on the
7952-
7953-
7954-fifth June 1 following the commercial operation date
7955-of the new renewable energy resource or new energy
7956-storage facility, but the applicant or owner shall
7957-thereafter continue to be subject to applicable
7958-reporting requirements of Section 5-117 of the Public
7959-Utilities Act.
7960-(c-10) Equity accountability system. It is the purpose of
7961-this subsection (c-10) to create an equity accountability
7962-system, which includes the minimum equity standards for all
7963-renewable energy procurements, the equity category of the
7964-Adjustable Block Program, and the equity prioritization for
7965-noncompetitive procurements, that is successful in advancing
7966-priority access to the clean energy economy for businesses and
7967-workers from communities that have been excluded from economic
7968-opportunities in the energy sector, have been subject to
7969-disproportionate levels of pollution, and have
7970-disproportionately experienced negative public health
7971-outcomes. Further, it is the purpose of this subsection to
7972-ensure that this equity accountability system is successful in
7973-advancing equity across Illinois by providing access to the
7974-clean energy economy for businesses and workers from
7975-communities that have been historically excluded from economic
7976-opportunities in the energy sector, have been subject to
7977-disproportionate levels of pollution, and have
7978-disproportionately experienced negative public health
7979-outcomes.
7980-
7981-
7982-(1) Minimum equity standards. The Agency shall create
7983-programs with the purpose of increasing access to and
7984-development of equity eligible contractors, who are prime
7985-contractors and subcontractors, across all of the programs
7986-it manages. All applications for renewable energy credit
7987-procurements shall comply with specific minimum equity
7988-commitments. Starting in the delivery year immediately
7989-following the next long-term renewable resources
7990-procurement plan, at least 10% of the project workforce
7991-for each entity participating in a procurement program
7992-outlined in this subsection (c-10) must be done by equity
7993-eligible persons or equity eligible contractors. The
7994-Agency shall increase the minimum percentage each delivery
7995-year thereafter by increments that ensure a statewide
7996-average of 30% of the project workforce for each entity
7997-participating in a procurement program is done by equity
7998-eligible persons or equity eligible contractors by 2030.
7999-The Agency shall propose a schedule of percentage
8000-increases to the minimum equity standards in its draft
8001-revised renewable energy resources procurement plan
8002-submitted to the Commission for approval pursuant to
8003-paragraph (5) of subsection (b) of Section 16-111.5 of the
8004-Public Utilities Act. In determining these annual
8005-increases, the Agency shall have the discretion to
8006-establish different minimum equity standards for different
8007-types of procurements and different regions of the State
8008-
8009-
8010-if the Agency finds that doing so will further the
8011-purposes of this subsection (c-10). The proposed schedule
8012-of annual increases shall be revisited and updated on an
8013-annual basis. Revisions shall be developed with
8014-stakeholder input, including from equity eligible persons,
8015-equity eligible contractors, clean energy industry
8016-representatives, and community-based organizations that
8017-work with such persons and contractors.
8018-(A) At the start of each delivery year, the Agency
8019-shall require a compliance plan from each entity
8020-participating in a procurement program of subsection
8021-(c) of this Section that demonstrates how they will
8022-achieve compliance with the minimum equity standard
8023-percentage for work completed in that delivery year.
8024-If an entity applies for its approved vendor or
8025-designee status between delivery years, the Agency
8026-shall require a compliance plan at the time of
8027-application.
8028-(B) Halfway through each delivery year, the Agency
8029-shall require each entity participating in a
8030-procurement program to confirm that it will achieve
8031-compliance in that delivery year, when applicable. The
8032-Agency may offer corrective action plans to entities
8033-that are not on track to achieve compliance.
8034-(C) At the end of each delivery year, each entity
8035-participating and completing work in that delivery
8036-
8037-
8038-year in a procurement program of subsection (c) shall
8039-submit a report to the Agency that demonstrates how it
8040-achieved compliance with the minimum equity standards
8041-percentage for that delivery year.
8042-(D) The Agency shall prohibit participation in
8043-procurement programs by an approved vendor or
8044-designee, as applicable, or entities with which an
8045-approved vendor or designee, as applicable, shares a
8046-common parent company if an approved vendor or
8047-designee, as applicable, failed to meet the minimum
8048-equity standards for the prior delivery year. Waivers
8049-approved for lack of equity eligible persons or equity
8050-eligible contractors in a geographic area of a project
8051-shall not count against the approved vendor or
8052-designee. The Agency shall offer a corrective action
8053-plan for any such entities to assist them in obtaining
8054-compliance and shall allow continued access to
8055-procurement programs upon an approved vendor or
8056-designee demonstrating compliance.
8057-(E) The Agency shall pursue efficiencies achieved
8058-by combining with other approved vendor or designee
8059-reporting.
8060-(2) Equity accountability system within the Adjustable
8061-Block program. The equity category described in item (vi)
8062-of subparagraph (K) of subsection (c) is only available to
8063-applicants that are equity eligible contractors.
8064-
8065-
8066-(3) Equity accountability system within competitive
8067-procurements. Through its long-term renewable resources
8068-procurement plan, the Agency shall develop requirements
8069-for ensuring that competitive procurement processes,
8070-including utility-scale solar, utility-scale wind, and
8071-brownfield site photovoltaic projects, advance the equity
8072-goals of this subsection (c-10). Subject to Commission
8073-approval, the Agency shall develop bid application
8074-requirements and a bid evaluation methodology for ensuring
8075-that utilization of equity eligible contractors, whether
8076-as bidders or as participants on project development, is
8077-optimized, including requiring that winning or successful
8078-applicants for utility-scale projects are or will partner
8079-with equity eligible contractors and giving preference to
8080-bids through which a higher portion of contract value
8081-flows to equity eligible contractors. To the extent
8082-practicable, entities participating in competitive
8083-procurements shall also be required to meet all the equity
8084-accountability requirements for approved vendors and their
8085-designees under this subsection (c-10). In developing
8086-these requirements, the Agency shall also consider whether
8087-equity goals can be further advanced through additional
8088-measures.
8089-(4) In the first revision to the long-term renewable
8090-energy resources procurement plan and each revision
8091-thereafter, the Agency shall include the following:
8092-
8093-
8094-(A) The current status and number of equity
8095-eligible contractors listed in the Energy Workforce
8096-Equity Database designed in subsection (c-25),
8097-including the number of equity eligible contractors
8098-with current certifications as issued by the Agency.
8099-(B) A mechanism for measuring, tracking, and
8100-reporting project workforce at the approved vendor or
8101-designee level, as applicable, which shall include a
8102-measurement methodology and records to be made
8103-available for audit by the Agency or the Program
8104-Administrator.
8105-(C) A program for approved vendors, designees,
8106-eligible persons, and equity eligible contractors to
8107-receive trainings, guidance, and other support from
8108-the Agency or its designee regarding the equity
8109-category outlined in item (vi) of subparagraph (K) of
8110-paragraph (1) of subsection (c) and in meeting the
8111-minimum equity standards of this subsection (c-10).
8112-(D) A process for certifying equity eligible
8113-contractors and equity eligible persons. The
8114-certification process shall coordinate with the Energy
8115-Workforce Equity Database set forth in subsection
8116-(c-25).
8117-(E) An application for waiver of the minimum
8118-equity standards of this subsection, which the Agency
8119-shall have the discretion to grant in rare
8120-
8121-
8122-circumstances. The Agency may grant such a waiver
8123-where the applicant provides evidence of significant
8124-efforts toward meeting the minimum equity commitment,
8125-including: use of the Energy Workforce Equity
8126-Database; efforts to hire or contract with entities
8127-that hire eligible persons; and efforts to establish
8128-contracting relationships with eligible contractors.
8129-The Agency shall support applicants in understanding
8130-the Energy Workforce Equity Database and other
8131-resources for pursuing compliance of the minimum
8132-equity standards. Waivers shall be project-specific,
8133-unless the Agency deems it necessary to grant a waiver
8134-across a portfolio of projects, and in effect for no
8135-longer than one year. Any waiver extension or
8136-subsequent waiver request from an applicant shall be
8137-subject to the requirements of this Section and shall
8138-specify efforts made to reach compliance. When
8139-considering whether to grant a waiver, and to what
8140-extent, the Agency shall consider the degree to which
8141-similarly situated applicants have been able to meet
8142-these minimum equity commitments. For repeated waiver
8143-requests for specific lack of eligible persons or
8144-eligible contractors available, the Agency shall make
8145-recommendations to target recruitment to add such
8146-eligible persons or eligible contractors to the
8147-database.
8148-
8149-
8150-(5) The Agency shall collect information about work on
8151-projects or portfolios of projects subject to these
8152-minimum equity standards to ensure compliance with this
8153-subsection (c-10). Reporting in furtherance of this
8154-requirement may be combined with other annual reporting
8155-requirements. Such reporting shall include proof of
8156-certification of each equity eligible contractor or equity
8157-eligible person during the applicable time period.
8158-(6) The Agency shall keep confidential all information
8159-and communication that provides private or personal
8160-information.
8161-(7) Modifications to the equity accountability system.
8162-As part of the update of the long-term renewable resources
8163-procurement plan to be initiated in 2023, or sooner if the
8164-Agency deems necessary, the Agency shall determine the
8165-extent to which the equity accountability system described
8166-in this subsection (c-10) has advanced the goals of this
8167-amendatory Act of the 102nd General Assembly, including
8168-through the inclusion of equity eligible persons and
8169-equity eligible contractors in renewable energy credit
8170-projects. If the Agency finds that the equity
8171-accountability system has failed to meet those goals to
8172-its fullest potential, the Agency may revise the following
8173-criteria for future Agency procurements: (A) the
8174-percentage of project workforce, or other appropriate
8175-workforce measure, certified as equity eligible persons or
8176-
8177-
8178-equity eligible contractors; (B) definitions for equity
8179-investment eligible persons and equity investment eligible
8180-community; and (C) such other modifications necessary to
8181-advance the goals of this amendatory Act of the 102nd
8182-General Assembly effectively. Such revised criteria may
8183-also establish distinct equity accountability systems for
8184-different types of procurements or different regions of
8185-the State if the Agency finds that doing so will further
8186-the purposes of such programs. Revisions shall be
8187-developed with stakeholder input, including from equity
8188-eligible persons, equity eligible contractors, and
8189-community-based organizations that work with such persons
8190-and contractors.
8191-(c-15) Racial discrimination elimination powers and
8192-process.
8193-(1) Purpose. It is the purpose of this subsection to
8194-empower the Agency and other State actors to remedy racial
8195-discrimination in Illinois' clean energy economy as
8196-effectively and expediently as possible, including through
8197-the use of race-conscious remedies, such as race-conscious
8198-contracting and hiring goals, as consistent with State and
8199-federal law.
8200-(2) Racial disparity and discrimination review
8201-process.
8202-(A) Within one year after awarding contracts using
8203-the equity actions processes established in this
8204-
8205-
8206-Section, the Agency shall publish a report evaluating
8207-the effectiveness of the equity actions point criteria
8208-of this Section in increasing participation of equity
8209-eligible persons and equity eligible contractors. The
8210-report shall disaggregate participating workers and
8211-contractors by race and ethnicity. The report shall be
8212-forwarded to the Governor, the General Assembly, and
8213-the Illinois Commerce Commission and be made available
8214-to the public.
8215-(B) As soon as is practicable thereafter, the
8216-Agency, in consultation with the Department of
8217-Commerce and Economic Opportunity, Department of
8218-Labor, and other agencies that may be relevant, shall
8219-commission and publish a disparity and availability
8220-study that measures the presence and impact of
8221-discrimination on minority businesses and workers in
8222-Illinois' clean energy economy. The Agency may hire
8223-consultants and experts to conduct the disparity and
8224-availability study, with the retention of those
8225-consultants and experts exempt from the requirements
8226-of Section 20-10 of the Illinois Procurement Code. The
8227-Illinois Power Agency shall forward a copy of its
8228-findings and recommendations to the Governor, the
8229-General Assembly, and the Illinois Commerce
8230-Commission. If the disparity and availability study
8231-establishes a strong basis in evidence that there is
8232-
8233-
8234-discrimination in Illinois' clean energy economy, the
8235-Agency, Department of Commerce and Economic
8236-Opportunity, Department of Labor, Department of
8237-Corrections, and other appropriate agencies shall take
8238-appropriate remedial actions, including race-conscious
8239-remedial actions as consistent with State and federal
8240-law, to effectively remedy this discrimination. Such
8241-remedies may include modification of the equity
8242-accountability system as described in subsection
8243-(c-10).
8244-(c-20) Program data collection.
8245-(1) Purpose. Data collection, data analysis, and
8246-reporting are critical to ensure that the benefits of the
8247-clean energy economy provided to Illinois residents and
8248-businesses are equitably distributed across the State. The
8249-Agency shall collect data from program applicants in order
8250-to track and improve equitable distribution of benefits
8251-across Illinois communities for all procurements the
8252-Agency conducts. The Agency shall use this data to, among
8253-other things, measure any potential impact of racial
8254-discrimination on the distribution of benefits and provide
8255-information necessary to correct any discrimination
8256-through methods consistent with State and federal law.
8257-(2) Agency collection of program data. The Agency
8258-shall collect demographic and geographic data for each
8259-entity awarded contracts under any Agency-administered
8260-
8261-
8262-program.
8263-(3) Required information to be collected. The Agency
8264-shall collect the following information from applicants
8265-and program participants where applicable:
8266-(A) demographic information, including racial or
8267-ethnic identity for real persons employed, contracted,
8268-or subcontracted through the program and owners of
8269-businesses or entities that apply to receive renewable
8270-energy credits from the Agency;
8271-(B) geographic location of the residency of real
8272-persons employed, contracted, or subcontracted through
8273-the program and geographic location of the
8274-headquarters of the business or entity that applies to
8275-receive renewable energy credits from the Agency; and
8276-(C) any other information the Agency determines is
8277-necessary for the purpose of achieving the purpose of
8278-this subsection.
8279-(4) Publication of collected information. The Agency
8280-shall publish, at least annually, information on the
8281-demographics of program participants on an aggregate
8282-basis.
8283-(5) Nothing in this subsection shall be interpreted to
8284-limit the authority of the Agency, or other agency or
8285-department of the State, to require or collect demographic
8286-information from applicants of other State programs.
8287-(c-25) Energy Workforce Equity Database.
8288-
8289-
8290-(1) The Agency, in consultation with the Department of
8291-Commerce and Economic Opportunity, shall create an Energy
8292-Workforce Equity Database, and may contract with a third
8293-party to do so ("database program administrator"). If the
8294-Department decides to contract with a third party, that
8295-third party shall be exempt from the requirements of
8296-Section 20-10 of the Illinois Procurement Code. The Energy
8297-Workforce Equity Database shall be a searchable database
8298-of suppliers, vendors, and subcontractors for clean energy
8299-industries that is:
8300-(A) publicly accessible;
8301-(B) easy for people to find and use;
8302-(C) organized by company specialty or field;
8303-(D) region-specific; and
8304-(E) populated with information including, but not
8305-limited to, contacts for suppliers, vendors, or
8306-subcontractors who are minority and women-owned
8307-business enterprise certified or who participate or
8308-have participated in any of the programs described in
8309-this Act.
8310-(2) The Agency shall create an easily accessible,
8311-public facing online tool using the database information
8312-that includes, at a minimum, the following:
8313-(A) a map of environmental justice and equity
8314-investment eligible communities;
8315-(B) job postings and recruiting opportunities;
8316-
8317-
8318-(C) a means by which recruiting clean energy
8319-companies can find and interact with current or former
8320-participants of clean energy workforce training
8321-programs;
8322-(D) information on workforce training service
8323-providers and training opportunities available to
8324-prospective workers;
8325-(E) renewable energy company diversity reporting;
8326-(F) a list of equity eligible contractors with
8327-their contact information, types of work performed,
8328-and locations worked in;
8329-(G) reporting on outcomes of the programs
8330-described in the workforce programs of the Energy
8331-Transition Act, including information such as, but not
8332-limited to, retention rate, graduation rate, and
8333-placement rates of trainees; and
8334-(H) information about the Jobs and Environmental
8335-Justice Grant Program, the Clean Energy Jobs and
8336-Justice Fund, and other sources of capital.
8337-(3) The Agency shall ensure the database is regularly
8338-updated to ensure information is current and shall
8339-coordinate with the Department of Commerce and Economic
8340-Opportunity to ensure that it includes information on
8341-individuals and entities that are or have participated in
8342-the Clean Jobs Workforce Network Program, Clean Energy
8343-Contractor Incubator Program, Returning Residents Clean
8344-
8345-
8346-Jobs Training Program, or Clean Energy Primes Contractor
8347-Accelerator Program.
8348-(c-30) Enforcement of minimum equity standards. All
8349-entities seeking renewable energy credits must submit an
8350-annual report to demonstrate compliance with each of the
8351-equity commitments required under subsection (c-10). If the
8352-Agency concludes the entity has not met or maintained its
8353-minimum equity standards required under the applicable
8354-subparagraphs under subsection (c-10), the Agency shall deny
8355-the entity's ability to participate in procurement programs in
8356-subsection (c), including by withholding approved vendor or
8357-designee status. The Agency may require the entity to enter
8358-into a corrective action plan. An entity that is not
8359-recertified for failing to meet required equity actions in
8360-subparagraph (c-10) may reapply once they have a corrective
8361-action plan and achieve compliance with the minimum equity
8362-standards.
8363-(d) Clean coal portfolio standard.
8364-(1) The procurement plans shall include electricity
8365-generated using clean coal. Each utility shall enter into
8366-one or more sourcing agreements with the initial clean
8367-coal facility, as provided in paragraph (3) of this
8368-subsection (d), covering electricity generated by the
8369-initial clean coal facility representing at least 5% of
8370-each utility's total supply to serve the load of eligible
8371-retail customers in 2015 and each year thereafter, as
8372-
8373-
8374-described in paragraph (3) of this subsection (d), subject
8375-to the limits specified in paragraph (2) of this
8376-subsection (d). It is the goal of the State that by January
8377-1, 2025, 25% of the electricity used in the State shall be
8378-generated by cost-effective clean coal facilities. For
8379-purposes of this subsection (d), "cost-effective" means
8380-that the expenditures pursuant to such sourcing agreements
8381-do not cause the limit stated in paragraph (2) of this
8382-subsection (d) to be exceeded and do not exceed cost-based
8383-benchmarks, which shall be developed to assess all
8384-expenditures pursuant to such sourcing agreements covering
8385-electricity generated by clean coal facilities, other than
8386-the initial clean coal facility, by the procurement
8387-administrator, in consultation with the Commission staff,
8388-Agency staff, and the procurement monitor and shall be
8389-subject to Commission review and approval.
8390-A utility party to a sourcing agreement shall
8391-immediately retire any emission credits that it receives
8392-in connection with the electricity covered by such
8393-agreement.
8394-Utilities shall maintain adequate records documenting
8395-the purchases under the sourcing agreement to comply with
8396-this subsection (d) and shall file an accounting with the
8397-load forecast that must be filed with the Agency by July 15
8398-of each year, in accordance with subsection (d) of Section
8399-16-111.5 of the Public Utilities Act.
8400-
8401-
8402-A utility shall be deemed to have complied with the
8403-clean coal portfolio standard specified in this subsection
8404-(d) if the utility enters into a sourcing agreement as
8405-required by this subsection (d).
8406-(2) For purposes of this subsection (d), the required
8407-execution of sourcing agreements with the initial clean
8408-coal facility for a particular year shall be measured as a
8409-percentage of the actual amount of electricity
8410-(megawatt-hours) supplied by the electric utility to
8411-eligible retail customers in the planning year ending
8412-immediately prior to the agreement's execution. For
8413-purposes of this subsection (d), the amount paid per
8414-kilowatthour means the total amount paid for electric
8415-service expressed on a per kilowatthour basis. For
8416-purposes of this subsection (d), the total amount paid for
8417-electric service includes without limitation amounts paid
8418-for supply, transmission, distribution, surcharges and
8419-add-on taxes.
8420-Notwithstanding the requirements of this subsection
8421-(d), the total amount paid under sourcing agreements with
8422-clean coal facilities pursuant to the procurement plan for
8423-any given year shall be reduced by an amount necessary to
8424-limit the annual estimated average net increase due to the
8425-costs of these resources included in the amounts paid by
8426-eligible retail customers in connection with electric
8427-service to:
8428-
8429-
8430-(A) in 2010, no more than 0.5% of the amount paid
8431-per kilowatthour by those customers during the year
8432-ending May 31, 2009;
8433-(B) in 2011, the greater of an additional 0.5% of
8434-the amount paid per kilowatthour by those customers
8435-during the year ending May 31, 2010 or 1% of the amount
8436-paid per kilowatthour by those customers during the
8437-year ending May 31, 2009;
8438-(C) in 2012, the greater of an additional 0.5% of
8439-the amount paid per kilowatthour by those customers
8440-during the year ending May 31, 2011 or 1.5% of the
8441-amount paid per kilowatthour by those customers during
8442-the year ending May 31, 2009;
8443-(D) in 2013, the greater of an additional 0.5% of
8444-the amount paid per kilowatthour by those customers
8445-during the year ending May 31, 2012 or 2% of the amount
8446-paid per kilowatthour by those customers during the
8447-year ending May 31, 2009; and
8448-(E) thereafter, the total amount paid under
8449-sourcing agreements with clean coal facilities
8450-pursuant to the procurement plan for any single year
8451-shall be reduced by an amount necessary to limit the
8452-estimated average net increase due to the cost of
8453-these resources included in the amounts paid by
8454-eligible retail customers in connection with electric
8455-service to no more than the greater of (i) 2.015% of
8456-
8457-
8458-the amount paid per kilowatthour by those customers
8459-during the year ending May 31, 2009 or (ii) the
8460-incremental amount per kilowatthour paid for these
8461-resources in 2013. These requirements may be altered
8462-only as provided by statute.
8463-No later than June 30, 2015, the Commission shall
8464-review the limitation on the total amount paid under
8465-sourcing agreements, if any, with clean coal facilities
8466-pursuant to this subsection (d) and report to the General
8467-Assembly its findings as to whether that limitation unduly
8468-constrains the amount of electricity generated by
8469-cost-effective clean coal facilities that is covered by
8470-sourcing agreements.
8471-(3) Initial clean coal facility. In order to promote
8472-development of clean coal facilities in Illinois, each
8473-electric utility subject to this Section shall execute a
8474-sourcing agreement to source electricity from a proposed
8475-clean coal facility in Illinois (the "initial clean coal
8476-facility") that will have a nameplate capacity of at least
8477-500 MW when commercial operation commences, that has a
8478-final Clean Air Act permit on June 1, 2009 (the effective
8479-date of Public Act 95-1027), and that will meet the
8480-definition of clean coal facility in Section 1-10 of this
8481-Act when commercial operation commences. The sourcing
8482-agreements with this initial clean coal facility shall be
8483-subject to both approval of the initial clean coal
8484-
8485-
8486-facility by the General Assembly and satisfaction of the
8487-requirements of paragraph (4) of this subsection (d) and
8488-shall be executed within 90 days after any such approval
8489-by the General Assembly. The Agency and the Commission
8490-shall have authority to inspect all books and records
8491-associated with the initial clean coal facility during the
8492-term of such a sourcing agreement. A utility's sourcing
8493-agreement for electricity produced by the initial clean
8494-coal facility shall include:
8495-(A) a formula contractual price (the "contract
8496-price") approved pursuant to paragraph (4) of this
8497-subsection (d), which shall:
8498-(i) be determined using a cost of service
8499-methodology employing either a level or deferred
8500-capital recovery component, based on a capital
8501-structure consisting of 45% equity and 55% debt,
8502-and a return on equity as may be approved by the
8503-Federal Energy Regulatory Commission, which in any
8504-case may not exceed the lower of 11.5% or the rate
8505-of return approved by the General Assembly
8506-pursuant to paragraph (4) of this subsection (d);
8507-and
8508-(ii) provide that all miscellaneous net
8509-revenue, including but not limited to net revenue
8510-from the sale of emission allowances, if any,
8511-substitute natural gas, if any, grants or other
8512-
8513-
8514-support provided by the State of Illinois or the
8515-United States Government, firm transmission
8516-rights, if any, by-products produced by the
8517-facility, energy or capacity derived from the
8518-facility and not covered by a sourcing agreement
8519-pursuant to paragraph (3) of this subsection (d)
8520-or item (5) of subsection (d) of Section 16-115 of
8521-the Public Utilities Act, whether generated from
8522-the synthesis gas derived from coal, from SNG, or
8523-from natural gas, shall be credited against the
8524-revenue requirement for this initial clean coal
8525-facility;
8526-(B) power purchase provisions, which shall:
8527-(i) provide that the utility party to such
8528-sourcing agreement shall pay the contract price
8529-for electricity delivered under such sourcing
8530-agreement;
8531-(ii) require delivery of electricity to the
8532-regional transmission organization market of the
8533-utility that is party to such sourcing agreement;
8534-(iii) require the utility party to such
8535-sourcing agreement to buy from the initial clean
8536-coal facility in each hour an amount of energy
8537-equal to all clean coal energy made available from
8538-the initial clean coal facility during such hour
8539-times a fraction, the numerator of which is such
8540-
8541-
8542-utility's retail market sales of electricity
8543-(expressed in kilowatthours sold) in the State
8544-during the prior calendar month and the
8545-denominator of which is the total retail market
8546-sales of electricity (expressed in kilowatthours
8547-sold) in the State by utilities during such prior
8548-month and the sales of electricity (expressed in
8549-kilowatthours sold) in the State by alternative
8550-retail electric suppliers during such prior month
8551-that are subject to the requirements of this
8552-subsection (d) and paragraph (5) of subsection (d)
8553-of Section 16-115 of the Public Utilities Act,
8554-provided that the amount purchased by the utility
8555-in any year will be limited by paragraph (2) of
8556-this subsection (d); and
8557-(iv) be considered pre-existing contracts in
8558-such utility's procurement plans for eligible
8559-retail customers;
8560-(C) contract for differences provisions, which
8561-shall:
8562-(i) require the utility party to such sourcing
8563-agreement to contract with the initial clean coal
8564-facility in each hour with respect to an amount of
8565-energy equal to all clean coal energy made
8566-available from the initial clean coal facility
8567-during such hour times a fraction, the numerator
8568-
8569-
8570-of which is such utility's retail market sales of
8571-electricity (expressed in kilowatthours sold) in
8572-the utility's service territory in the State
8573-during the prior calendar month and the
8574-denominator of which is the total retail market
8575-sales of electricity (expressed in kilowatthours
8576-sold) in the State by utilities during such prior
8577-month and the sales of electricity (expressed in
8578-kilowatthours sold) in the State by alternative
8579-retail electric suppliers during such prior month
8580-that are subject to the requirements of this
8581-subsection (d) and paragraph (5) of subsection (d)
8582-of Section 16-115 of the Public Utilities Act,
8583-provided that the amount paid by the utility in
8584-any year will be limited by paragraph (2) of this
8585-subsection (d);
8586-(ii) provide that the utility's payment
8587-obligation in respect of the quantity of
8588-electricity determined pursuant to the preceding
8589-clause (i) shall be limited to an amount equal to
8590-(1) the difference between the contract price
8591-determined pursuant to subparagraph (A) of
8592-paragraph (3) of this subsection (d) and the
8593-day-ahead price for electricity delivered to the
8594-regional transmission organization market of the
8595-utility that is party to such sourcing agreement
8596-
8597-
8598-(or any successor delivery point at which such
8599-utility's supply obligations are financially
8600-settled on an hourly basis) (the "reference
8601-price") on the day preceding the day on which the
8602-electricity is delivered to the initial clean coal
8603-facility busbar, multiplied by (2) the quantity of
8604-electricity determined pursuant to the preceding
8605-clause (i); and
8606-(iii) not require the utility to take physical
8607-delivery of the electricity produced by the
8608-facility;
8609-(D) general provisions, which shall:
8610-(i) specify a term of no more than 30 years,
8611-commencing on the commercial operation date of the
8612-facility;
8613-(ii) provide that utilities shall maintain
8614-adequate records documenting purchases under the
8615-sourcing agreements entered into to comply with
8616-this subsection (d) and shall file an accounting
8617-with the load forecast that must be filed with the
8618-Agency by July 15 of each year, in accordance with
8619-subsection (d) of Section 16-111.5 of the Public
8620-Utilities Act;
8621-(iii) provide that all costs associated with
8622-the initial clean coal facility will be
8623-periodically reported to the Federal Energy
8624-
8625-
8626-Regulatory Commission and to purchasers in
8627-accordance with applicable laws governing
8628-cost-based wholesale power contracts;
8629-(iv) permit the Illinois Power Agency to
8630-assume ownership of the initial clean coal
8631-facility, without monetary consideration and
8632-otherwise on reasonable terms acceptable to the
8633-Agency, if the Agency so requests no less than 3
8634-years prior to the end of the stated contract
8635-term;
8636-(v) require the owner of the initial clean
8637-coal facility to provide documentation to the
8638-Commission each year, starting in the facility's
8639-first year of commercial operation, accurately
8640-reporting the quantity of carbon emissions from
8641-the facility that have been captured and
8642-sequestered and report any quantities of carbon
8643-released from the site or sites at which carbon
8644-emissions were sequestered in prior years, based
8645-on continuous monitoring of such sites. If, in any
8646-year after the first year of commercial operation,
8647-the owner of the facility fails to demonstrate
8648-that the initial clean coal facility captured and
8649-sequestered at least 50% of the total carbon
8650-emissions that the facility would otherwise emit
8651-or that sequestration of emissions from prior
8652-
8653-
8654-years has failed, resulting in the release of
8655-carbon dioxide into the atmosphere, the owner of
8656-the facility must offset excess emissions. Any
8657-such carbon offsets must be permanent, additional,
8658-verifiable, real, located within the State of
8659-Illinois, and legally and practicably enforceable.
8660-The cost of such offsets for the facility that are
8661-not recoverable shall not exceed $15 million in
8662-any given year. No costs of any such purchases of
8663-carbon offsets may be recovered from a utility or
8664-its customers. All carbon offsets purchased for
8665-this purpose and any carbon emission credits
8666-associated with sequestration of carbon from the
8667-facility must be permanently retired. The initial
8668-clean coal facility shall not forfeit its
8669-designation as a clean coal facility if the
8670-facility fails to fully comply with the applicable
8671-carbon sequestration requirements in any given
8672-year, provided the requisite offsets are
8673-purchased. However, the Attorney General, on
8674-behalf of the People of the State of Illinois, may
8675-specifically enforce the facility's sequestration
8676-requirement and the other terms of this contract
8677-provision. Compliance with the sequestration
8678-requirements and offset purchase requirements
8679-specified in paragraph (3) of this subsection (d)
8680-
8681-
8682-shall be reviewed annually by an independent
8683-expert retained by the owner of the initial clean
8684-coal facility, with the advance written approval
8685-of the Attorney General. The Commission may, in
8686-the course of the review specified in item (vii),
8687-reduce the allowable return on equity for the
8688-facility if the facility willfully fails to comply
8689-with the carbon capture and sequestration
8690-requirements set forth in this item (v);
8691-(vi) include limits on, and accordingly
8692-provide for modification of, the amount the
8693-utility is required to source under the sourcing
8694-agreement consistent with paragraph (2) of this
8695-subsection (d);
8696-(vii) require Commission review: (1) to
8697-determine the justness, reasonableness, and
8698-prudence of the inputs to the formula referenced
8699-in subparagraphs (A)(i) through (A)(iii) of
8700-paragraph (3) of this subsection (d), prior to an
8701-adjustment in those inputs including, without
8702-limitation, the capital structure and return on
8703-equity, fuel costs, and other operations and
8704-maintenance costs and (2) to approve the costs to
8705-be passed through to customers under the sourcing
8706-agreement by which the utility satisfies its
8707-statutory obligations. Commission review shall
8708-
8709-
8710-occur no less than every 3 years, regardless of
8711-whether any adjustments have been proposed, and
8712-shall be completed within 9 months;
8713-(viii) limit the utility's obligation to such
8714-amount as the utility is allowed to recover
8715-through tariffs filed with the Commission,
8716-provided that neither the clean coal facility nor
8717-the utility waives any right to assert federal
8718-pre-emption or any other argument in response to a
8719-purported disallowance of recovery costs;
8720-(ix) limit the utility's or alternative retail
8721-electric supplier's obligation to incur any
8722-liability until such time as the facility is in
8723-commercial operation and generating power and
8724-energy and such power and energy is being
8725-delivered to the facility busbar;
8726-(x) provide that the owner or owners of the
8727-initial clean coal facility, which is the
8728-counterparty to such sourcing agreement, shall
8729-have the right from time to time to elect whether
8730-the obligations of the utility party thereto shall
8731-be governed by the power purchase provisions or
8732-the contract for differences provisions;
8733-(xi) append documentation showing that the
8734-formula rate and contract, insofar as they relate
8735-to the power purchase provisions, have been
8736-
8737-
8738-approved by the Federal Energy Regulatory
8739-Commission pursuant to Section 205 of the Federal
8740-Power Act;
8741-(xii) provide that any changes to the terms of
8742-the contract, insofar as such changes relate to
8743-the power purchase provisions, are subject to
8744-review under the public interest standard applied
8745-by the Federal Energy Regulatory Commission
8746-pursuant to Sections 205 and 206 of the Federal
8747-Power Act; and
8748-(xiii) conform with customary lender
8749-requirements in power purchase agreements used as
8750-the basis for financing non-utility generators.
8751-(4) Effective date of sourcing agreements with the
8752-initial clean coal facility. Any proposed sourcing
8753-agreement with the initial clean coal facility shall not
8754-become effective unless the following reports are prepared
8755-and submitted and authorizations and approvals obtained:
8756-(i) Facility cost report. The owner of the initial
8757-clean coal facility shall submit to the Commission,
8758-the Agency, and the General Assembly a front-end
8759-engineering and design study, a facility cost report,
8760-method of financing (including but not limited to
8761-structure and associated costs), and an operating and
8762-maintenance cost quote for the facility (collectively
8763-"facility cost report"), which shall be prepared in
8764-
8765-
8766-accordance with the requirements of this paragraph (4)
8767-of subsection (d) of this Section, and shall provide
8768-the Commission and the Agency access to the work
8769-papers, relied upon documents, and any other backup
8770-documentation related to the facility cost report.
8771-(ii) Commission report. Within 6 months following
8772-receipt of the facility cost report, the Commission,
8773-in consultation with the Agency, shall submit a report
8774-to the General Assembly setting forth its analysis of
8775-the facility cost report. Such report shall include,
8776-but not be limited to, a comparison of the costs
8777-associated with electricity generated by the initial
8778-clean coal facility to the costs associated with
8779-electricity generated by other types of generation
8780-facilities, an analysis of the rate impacts on
8781-residential and small business customers over the life
8782-of the sourcing agreements, and an analysis of the
8783-likelihood that the initial clean coal facility will
8784-commence commercial operation by and be delivering
8785-power to the facility's busbar by 2016. To assist in
8786-the preparation of its report, the Commission, in
8787-consultation with the Agency, may hire one or more
8788-experts or consultants, the costs of which shall be
8789-paid for by the owner of the initial clean coal
8790-facility. The Commission and Agency may begin the
8791-process of selecting such experts or consultants prior
8792-
8793-
8794-to receipt of the facility cost report.
8795-(iii) General Assembly approval. The proposed
8796-sourcing agreements shall not take effect unless,
8797-based on the facility cost report and the Commission's
8798-report, the General Assembly enacts authorizing
8799-legislation approving (A) the projected price, stated
8800-in cents per kilowatthour, to be charged for
8801-electricity generated by the initial clean coal
8802-facility, (B) the projected impact on residential and
8803-small business customers' bills over the life of the
8804-sourcing agreements, and (C) the maximum allowable
8805-return on equity for the project; and
8806-(iv) Commission review. If the General Assembly
8807-enacts authorizing legislation pursuant to
8808-subparagraph (iii) approving a sourcing agreement, the
8809-Commission shall, within 90 days of such enactment,
8810-complete a review of such sourcing agreement. During
8811-such time period, the Commission shall implement any
8812-directive of the General Assembly, resolve any
8813-disputes between the parties to the sourcing agreement
8814-concerning the terms of such agreement, approve the
8815-form of such agreement, and issue an order finding
8816-that the sourcing agreement is prudent and reasonable.
8817-The facility cost report shall be prepared as follows:
8818-(A) The facility cost report shall be prepared by
8819-duly licensed engineering and construction firms
8820-
8821-
8822-detailing the estimated capital costs payable to one
8823-or more contractors or suppliers for the engineering,
8824-procurement and construction of the components
8825-comprising the initial clean coal facility and the
8826-estimated costs of operation and maintenance of the
8827-facility. The facility cost report shall include:
8828-(i) an estimate of the capital cost of the
8829-core plant based on one or more front end
8830-engineering and design studies for the
8831-gasification island and related facilities. The
8832-core plant shall include all civil, structural,
8833-mechanical, electrical, control, and safety
8834-systems.
8835-(ii) an estimate of the capital cost of the
8836-balance of the plant, including any capital costs
8837-associated with sequestration of carbon dioxide
8838-emissions and all interconnects and interfaces
8839-required to operate the facility, such as
8840-transmission of electricity, construction or
8841-backfeed power supply, pipelines to transport
8842-substitute natural gas or carbon dioxide, potable
8843-water supply, natural gas supply, water supply,
8844-water discharge, landfill, access roads, and coal
8845-delivery.
8846-The quoted construction costs shall be expressed
8847-in nominal dollars as of the date that the quote is
8848-
8849-
8850-prepared and shall include capitalized financing costs
8851-during construction, taxes, insurance, and other
8852-owner's costs, and an assumed escalation in materials
8853-and labor beyond the date as of which the construction
8854-cost quote is expressed.
8855-(B) The front end engineering and design study for
8856-the gasification island and the cost study for the
8857-balance of plant shall include sufficient design work
8858-to permit quantification of major categories of
8859-materials, commodities and labor hours, and receipt of
8860-quotes from vendors of major equipment required to
8861-construct and operate the clean coal facility.
8862-(C) The facility cost report shall also include an
8863-operating and maintenance cost quote that will provide
8864-the estimated cost of delivered fuel, personnel,
8865-maintenance contracts, chemicals, catalysts,
8866-consumables, spares, and other fixed and variable
8867-operations and maintenance costs. The delivered fuel
8868-cost estimate will be provided by a recognized third
8869-party expert or experts in the fuel and transportation
8870-industries. The balance of the operating and
8871-maintenance cost quote, excluding delivered fuel
8872-costs, will be developed based on the inputs provided
8873-by duly licensed engineering and construction firms
8874-performing the construction cost quote, potential
8875-vendors under long-term service agreements and plant
8876-
8877-
8878-operating agreements, or recognized third party plant
8879-operator or operators.
8880-The operating and maintenance cost quote
8881-(including the cost of the front end engineering and
8882-design study) shall be expressed in nominal dollars as
8883-of the date that the quote is prepared and shall
8884-include taxes, insurance, and other owner's costs, and
8885-an assumed escalation in materials and labor beyond
8886-the date as of which the operating and maintenance
8887-cost quote is expressed.
8888-(D) The facility cost report shall also include an
8889-analysis of the initial clean coal facility's ability
8890-to deliver power and energy into the applicable
8891-regional transmission organization markets and an
8892-analysis of the expected capacity factor for the
8893-initial clean coal facility.
8894-(E) Amounts paid to third parties unrelated to the
8895-owner or owners of the initial clean coal facility to
8896-prepare the core plant construction cost quote,
8897-including the front end engineering and design study,
8898-and the operating and maintenance cost quote will be
8899-reimbursed through Coal Development Bonds.
8900-(5) Re-powering and retrofitting coal-fired power
8901-plants previously owned by Illinois utilities to qualify
8902-as clean coal facilities. During the 2009 procurement
8903-planning process and thereafter, the Agency and the
8904-
8905-
8906-Commission shall consider sourcing agreements covering
8907-electricity generated by power plants that were previously
8908-owned by Illinois utilities and that have been or will be
8909-converted into clean coal facilities, as defined by
8910-Section 1-10 of this Act. Pursuant to such procurement
8911-planning process, the owners of such facilities may
8912-propose to the Agency sourcing agreements with utilities
8913-and alternative retail electric suppliers required to
8914-comply with subsection (d) of this Section and item (5) of
8915-subsection (d) of Section 16-115 of the Public Utilities
8916-Act, covering electricity generated by such facilities. In
8917-the case of sourcing agreements that are power purchase
8918-agreements, the contract price for electricity sales shall
8919-be established on a cost of service basis. In the case of
8920-sourcing agreements that are contracts for differences,
8921-the contract price from which the reference price is
8922-subtracted shall be established on a cost of service
8923-basis. The Agency and the Commission may approve any such
8924-utility sourcing agreements that do not exceed cost-based
8925-benchmarks developed by the procurement administrator, in
8926-consultation with the Commission staff, Agency staff and
8927-the procurement monitor, subject to Commission review and
8928-approval. The Commission shall have authority to inspect
8929-all books and records associated with these clean coal
8930-facilities during the term of any such contract.
8931-(6) Costs incurred under this subsection (d) or
8932-
8933-
8934-pursuant to a contract entered into under this subsection
8935-(d) shall be deemed prudently incurred and reasonable in
8936-amount and the electric utility shall be entitled to full
8937-cost recovery pursuant to the tariffs filed with the
8938-Commission.
8939-(d-5) Zero emission standard.
8940-(1) Beginning with the delivery year commencing on
8941-June 1, 2017, the Agency shall, for electric utilities
8942-that serve at least 100,000 retail customers in this
8943-State, procure contracts with zero emission facilities
8944-that are reasonably capable of generating cost-effective
8945-zero emission credits in an amount approximately equal to
8946-16% of the actual amount of electricity delivered by each
8947-electric utility to retail customers in the State during
8948-calendar year 2014. For an electric utility serving fewer
8949-than 100,000 retail customers in this State that
8950-requested, under Section 16-111.5 of the Public Utilities
8951-Act, that the Agency procure power and energy for all or a
8952-portion of the utility's Illinois load for the delivery
8953-year commencing June 1, 2016, the Agency shall procure
8954-contracts with zero emission facilities that are
8955-reasonably capable of generating cost-effective zero
8956-emission credits in an amount approximately equal to 16%
8957-of the portion of power and energy to be procured by the
8958-Agency for the utility. The duration of the contracts
8959-procured under this subsection (d-5) shall be for a term
8960-
8961-
8962-of 10 years ending May 31, 2027. The quantity of zero
8963-emission credits to be procured under the contracts shall
8964-be all of the zero emission credits generated by the zero
8965-emission facility in each delivery year; however, if the
8966-zero emission facility is owned by more than one entity,
8967-then the quantity of zero emission credits to be procured
8968-under the contracts shall be the amount of zero emission
8969-credits that are generated from the portion of the zero
8970-emission facility that is owned by the winning supplier.
8971-The 16% value identified in this paragraph (1) is the
8972-average of the percentage targets in subparagraph (B) of
8973-paragraph (1) of subsection (c) of this Section for the 5
8974-delivery years beginning June 1, 2017.
8975-The procurement process shall be subject to the
8976-following provisions:
8977-(A) Those zero emission facilities that intend to
8978-participate in the procurement shall submit to the
8979-Agency the following eligibility information for each
8980-zero emission facility on or before the date
8981-established by the Agency:
8982-(i) the in-service date and remaining useful
8983-life of the zero emission facility;
8984-(ii) the amount of power generated annually
8985-for each of the years 2005 through 2015, and the
8986-projected zero emission credits to be generated
8987-over the remaining useful life of the zero
8988-
8989-
8990-emission facility, which shall be used to
8991-determine the capability of each facility;
8992-(iii) the annual zero emission facility cost
8993-projections, expressed on a per megawatthour
8994-basis, over the next 6 delivery years, which shall
8995-include the following: operation and maintenance
8996-expenses; fully allocated overhead costs, which
8997-shall be allocated using the methodology developed
8998-by the Institute for Nuclear Power Operations;
8999-fuel expenditures; non-fuel capital expenditures;
9000-spent fuel expenditures; a return on working
9001-capital; the cost of operational and market risks
9002-that could be avoided by ceasing operation; and
9003-any other costs necessary for continued
9004-operations, provided that "necessary" means, for
9005-purposes of this item (iii), that the costs could
9006-reasonably be avoided only by ceasing operations
9007-of the zero emission facility; and
9008-(iv) a commitment to continue operating, for
9009-the duration of the contract or contracts executed
9010-under the procurement held under this subsection
9011-(d-5), the zero emission facility that produces
9012-the zero emission credits to be procured in the
9013-procurement.
9014-The information described in item (iii) of this
9015-subparagraph (A) may be submitted on a confidential
9016-
9017-
9018-basis and shall be treated and maintained by the
9019-Agency, the procurement administrator, and the
9020-Commission as confidential and proprietary and exempt
9021-from disclosure under subparagraphs (a) and (g) of
9022-paragraph (1) of Section 7 of the Freedom of
9023-Information Act. The Office of Attorney General shall
9024-have access to, and maintain the confidentiality of,
9025-such information pursuant to Section 6.5 of the
9026-Attorney General Act.
9027-(B) The price for each zero emission credit
9028-procured under this subsection (d-5) for each delivery
9029-year shall be in an amount that equals the Social Cost
9030-of Carbon, expressed on a price per megawatthour
9031-basis. However, to ensure that the procurement remains
9032-affordable to retail customers in this State if
9033-electricity prices increase, the price in an
9034-applicable delivery year shall be reduced below the
9035-Social Cost of Carbon by the amount ("Price
9036-Adjustment") by which the market price index for the
9037-applicable delivery year exceeds the baseline market
9038-price index for the consecutive 12-month period ending
9039-May 31, 2016. If the Price Adjustment is greater than
9040-or equal to the Social Cost of Carbon in an applicable
9041-delivery year, then no payments shall be due in that
9042-delivery year. The components of this calculation are
9043-defined as follows:
9044-
9045-
9046-(i) Social Cost of Carbon: The Social Cost of
9047-Carbon is $16.50 per megawatthour, which is based
9048-on the U.S. Interagency Working Group on Social
9049-Cost of Carbon's price in the August 2016
9050-Technical Update using a 3% discount rate,
9051-adjusted for inflation for each year of the
9052-program. Beginning with the delivery year
9053-commencing June 1, 2023, the price per
9054-megawatthour shall increase by $1 per
9055-megawatthour, and continue to increase by an
9056-additional $1 per megawatthour each delivery year
9057-thereafter.
9058-(ii) Baseline market price index: The baseline
9059-market price index for the consecutive 12-month
9060-period ending May 31, 2016 is $31.40 per
9061-megawatthour, which is based on the sum of (aa)
9062-the average day-ahead energy price across all
9063-hours of such 12-month period at the PJM
9064-Interconnection LLC Northern Illinois Hub, (bb)
9065-50% multiplied by the Base Residual Auction, or
9066-its successor, capacity price for the rest of the
9067-RTO zone group determined by PJM Interconnection
9068-LLC, divided by 24 hours per day, and (cc) 50%
9069-multiplied by the Planning Resource Auction, or
9070-its successor, capacity price for Zone 4
9071-determined by the Midcontinent Independent System
9072-
9073-
9074-Operator, Inc., divided by 24 hours per day.
9075-(iii) Market price index: The market price
9076-index for a delivery year shall be the sum of
9077-projected energy prices and projected capacity
9078-prices determined as follows:
9079-(aa) Projected energy prices: the
9080-projected energy prices for the applicable
9081-delivery year shall be calculated once for the
9082-year using the forward market price for the
9083-PJM Interconnection, LLC Northern Illinois
9084-Hub. The forward market price shall be
9085-calculated as follows: the energy forward
9086-prices for each month of the applicable
9087-delivery year averaged for each trade date
9088-during the calendar year immediately preceding
9089-that delivery year to produce a single energy
9090-forward price for the delivery year. The
9091-forward market price calculation shall use
9092-data published by the Intercontinental
9093-Exchange, or its successor.
9094-(bb) Projected capacity prices:
9095-(I) For the delivery years commencing
9096-June 1, 2017, June 1, 2018, and June 1,
9097-2019, the projected capacity price shall
9098-be equal to the sum of (1) 50% multiplied
9099-by the Base Residual Auction, or its
9100-
9101-
9102-successor, price for the rest of the RTO
9103-zone group as determined by PJM
9104-Interconnection LLC, divided by 24 hours
9105-per day and, (2) 50% multiplied by the
9106-resource auction price determined in the
9107-resource auction administered by the
9108-Midcontinent Independent System Operator,
9109-Inc., in which the largest percentage of
9110-load cleared for Local Resource Zone 4,
9111-divided by 24 hours per day, and where
9112-such price is determined by the
9113-Midcontinent Independent System Operator,
9114-Inc.
9115-(II) For the delivery year commencing
9116-June 1, 2020, and each year thereafter,
9117-the projected capacity price shall be
9118-equal to the sum of (1) 50% multiplied by
9119-the Base Residual Auction, or its
9120-successor, price for the ComEd zone as
9121-determined by PJM Interconnection LLC,
9122-divided by 24 hours per day, and (2) 50%
9123-multiplied by the resource auction price
9124-determined in the resource auction
9125-administered by the Midcontinent
9126-Independent System Operator, Inc., in
9127-which the largest percentage of load
9128-
9129-
9130-cleared for Local Resource Zone 4, divided
9131-by 24 hours per day, and where such price
9132-is determined by the Midcontinent
9133-Independent System Operator, Inc.
9134-For purposes of this subsection (d-5):
9135-"Rest of the RTO" and "ComEd Zone" shall have
9136-the meaning ascribed to them by PJM
9137-Interconnection, LLC.
9138-"RTO" means regional transmission
9139-organization.
9140-(C) No later than 45 days after June 1, 2017 (the
9141-effective date of Public Act 99-906), the Agency shall
9142-publish its proposed zero emission standard
9143-procurement plan. The plan shall be consistent with
9144-the provisions of this paragraph (1) and shall provide
9145-that winning bids shall be selected based on public
9146-interest criteria that include, but are not limited
9147-to, minimizing carbon dioxide emissions that result
9148-from electricity consumed in Illinois and minimizing
9149-sulfur dioxide, nitrogen oxide, and particulate matter
9150-emissions that adversely affect the citizens of this
9151-State. In particular, the selection of winning bids
9152-shall take into account the incremental environmental
9153-benefits resulting from the procurement, such as any
9154-existing environmental benefits that are preserved by
9155-the procurements held under Public Act 99-906 and
9156-
9157-
9158-would cease to exist if the procurements were not
9159-held, including the preservation of zero emission
9160-facilities. The plan shall also describe in detail how
9161-each public interest factor shall be considered and
9162-weighted in the bid selection process to ensure that
9163-the public interest criteria are applied to the
9164-procurement and given full effect.
9165-For purposes of developing the plan, the Agency
9166-shall consider any reports issued by a State agency,
9167-board, or commission under House Resolution 1146 of
9168-the 98th General Assembly and paragraph (4) of
9169-subsection (d) of this Section, as well as publicly
9170-available analyses and studies performed by or for
9171-regional transmission organizations that serve the
9172-State and their independent market monitors.
9173-Upon publishing of the zero emission standard
9174-procurement plan, copies of the plan shall be posted
9175-and made publicly available on the Agency's website.
9176-All interested parties shall have 10 days following
9177-the date of posting to provide comment to the Agency on
9178-the plan. All comments shall be posted to the Agency's
9179-website. Following the end of the comment period, but
9180-no more than 60 days later than June 1, 2017 (the
9181-effective date of Public Act 99-906), the Agency shall
9182-revise the plan as necessary based on the comments
9183-received and file its zero emission standard
9184-
9185-
9186-procurement plan with the Commission.
9187-If the Commission determines that the plan will
9188-result in the procurement of cost-effective zero
9189-emission credits, then the Commission shall, after
9190-notice and hearing, but no later than 45 days after the
9191-Agency filed the plan, approve the plan or approve
9192-with modification. For purposes of this subsection
9193-(d-5), "cost effective" means the projected costs of
9194-procuring zero emission credits from zero emission
9195-facilities do not cause the limit stated in paragraph
9196-(2) of this subsection to be exceeded.
9197-(C-5) As part of the Commission's review and
9198-acceptance or rejection of the procurement results,
9199-the Commission shall, in its public notice of
9200-successful bidders:
9201-(i) identify how the winning bids satisfy the
9202-public interest criteria described in subparagraph
9203-(C) of this paragraph (1) of minimizing carbon
9204-dioxide emissions that result from electricity
9205-consumed in Illinois and minimizing sulfur
9206-dioxide, nitrogen oxide, and particulate matter
9207-emissions that adversely affect the citizens of
9208-this State;
9209-(ii) specifically address how the selection of
9210-winning bids takes into account the incremental
9211-environmental benefits resulting from the
9212-
9213-
9214-procurement, including any existing environmental
9215-benefits that are preserved by the procurements
9216-held under Public Act 99-906 and would have ceased
9217-to exist if the procurements had not been held,
9218-such as the preservation of zero emission
9219-facilities;
9220-(iii) quantify the environmental benefit of
9221-preserving the resources identified in item (ii)
9222-of this subparagraph (C-5), including the
9223-following:
9224-(aa) the value of avoided greenhouse gas
9225-emissions measured as the product of the zero
9226-emission facilities' output over the contract
9227-term multiplied by the U.S. Environmental
9228-Protection Agency eGrid subregion carbon
9229-dioxide emission rate and the U.S. Interagency
9230-Working Group on Social Cost of Carbon's price
9231-in the August 2016 Technical Update using a 3%
9232-discount rate, adjusted for inflation for each
9233-delivery year; and
9234-(bb) the costs of replacement with other
9235-zero carbon dioxide resources, including wind
9236-and photovoltaic, based upon the simple
9237-average of the following:
9238-(I) the price, or if there is more
9239-than one price, the average of the prices,
9240-
9241-
9242-paid for renewable energy credits from new
9243-utility-scale wind projects in the
9244-procurement events specified in item (i)
9245-of subparagraph (G) of paragraph (1) of
9246-subsection (c) of this Section; and
9247-(II) the price, or if there is more
9248-than one price, the average of the prices,
9249-paid for renewable energy credits from new
9250-utility-scale solar projects and
9251-brownfield site photovoltaic projects in
9252-the procurement events specified in item
9253-(ii) of subparagraph (G) of paragraph (1)
9254-of subsection (c) of this Section and,
9255-after January 1, 2015, renewable energy
9256-credits from photovoltaic distributed
9257-generation projects in procurement events
9258-held under subsection (c) of this Section.
9259-Each utility shall enter into binding contractual
9260-arrangements with the winning suppliers.
9261-The procurement described in this subsection
9262-(d-5), including, but not limited to, the execution of
9263-all contracts procured, shall be completed no later
9264-than May 10, 2017. Based on the effective date of
9265-Public Act 99-906, the Agency and Commission may, as
9266-appropriate, modify the various dates and timelines
9267-under this subparagraph and subparagraphs (C) and (D)
9268-
9269-
9270-of this paragraph (1). The procurement and plan
9271-approval processes required by this subsection (d-5)
9272-shall be conducted in conjunction with the procurement
9273-and plan approval processes required by subsection (c)
9274-of this Section and Section 16-111.5 of the Public
9275-Utilities Act, to the extent practicable.
9276-Notwithstanding whether a procurement event is
9277-conducted under Section 16-111.5 of the Public
9278-Utilities Act, the Agency shall immediately initiate a
9279-procurement process on June 1, 2017 (the effective
9280-date of Public Act 99-906).
9281-(D) Following the procurement event described in
9282-this paragraph (1) and consistent with subparagraph
9283-(B) of this paragraph (1), the Agency shall calculate
9284-the payments to be made under each contract for the
9285-next delivery year based on the market price index for
9286-that delivery year. The Agency shall publish the
9287-payment calculations no later than May 25, 2017 and
9288-every May 25 thereafter.
9289-(E) Notwithstanding the requirements of this
9290-subsection (d-5), the contracts executed under this
9291-subsection (d-5) shall provide that the zero emission
9292-facility may, as applicable, suspend or terminate
9293-performance under the contracts in the following
9294-instances:
9295-(i) A zero emission facility shall be excused
9296-
9297-
9298-from its performance under the contract for any
9299-cause beyond the control of the resource,
9300-including, but not restricted to, acts of God,
9301-flood, drought, earthquake, storm, fire,
9302-lightning, epidemic, war, riot, civil disturbance
9303-or disobedience, labor dispute, labor or material
9304-shortage, sabotage, acts of public enemy,
9305-explosions, orders, regulations or restrictions
9306-imposed by governmental, military, or lawfully
9307-established civilian authorities, which, in any of
9308-the foregoing cases, by exercise of commercially
9309-reasonable efforts the zero emission facility
9310-could not reasonably have been expected to avoid,
9311-and which, by the exercise of commercially
9312-reasonable efforts, it has been unable to
9313-overcome. In such event, the zero emission
9314-facility shall be excused from performance for the
9315-duration of the event, including, but not limited
9316-to, delivery of zero emission credits, and no
9317-payment shall be due to the zero emission facility
9318-during the duration of the event.
9319-(ii) A zero emission facility shall be
9320-permitted to terminate the contract if legislation
9321-is enacted into law by the General Assembly that
9322-imposes or authorizes a new tax, special
9323-assessment, or fee on the generation of
9324-
9325-
9326-electricity, the ownership or leasehold of a
9327-generating unit, or the privilege or occupation of
9328-such generation, ownership, or leasehold of
9329-generation units by a zero emission facility.
9330-However, the provisions of this item (ii) do not
9331-apply to any generally applicable tax, special
9332-assessment or fee, or requirements imposed by
9333-federal law.
9334-(iii) A zero emission facility shall be
9335-permitted to terminate the contract in the event
9336-that the resource requires capital expenditures in
9337-excess of $40,000,000 that were neither known nor
9338-reasonably foreseeable at the time it executed the
9339-contract and that a prudent owner or operator of
9340-such resource would not undertake.
9341-(iv) A zero emission facility shall be
9342-permitted to terminate the contract in the event
9343-the Nuclear Regulatory Commission terminates the
9344-resource's license.
9345-(F) If the zero emission facility elects to
9346-terminate a contract under subparagraph (E) of this
9347-paragraph (1), then the Commission shall reopen the
9348-docket in which the Commission approved the zero
9349-emission standard procurement plan under subparagraph
9350-(C) of this paragraph (1) and, after notice and
9351-hearing, enter an order acknowledging the contract
9352-
9353-
9354-termination election if such termination is consistent
9355-with the provisions of this subsection (d-5).
9356-(2) For purposes of this subsection (d-5), the amount
9357-paid per kilowatthour means the total amount paid for
9358-electric service expressed on a per kilowatthour basis.
9359-For purposes of this subsection (d-5), the total amount
9360-paid for electric service includes, without limitation,
9361-amounts paid for supply, transmission, distribution,
9362-surcharges, and add-on taxes.
9363-Notwithstanding the requirements of this subsection
9364-(d-5), the contracts executed under this subsection (d-5)
9365-shall provide that the total of zero emission credits
9366-procured under a procurement plan shall be subject to the
9367-limitations of this paragraph (2). For each delivery year,
9368-the contractual volume receiving payments in such year
9369-shall be reduced for all retail customers based on the
9370-amount necessary to limit the net increase that delivery
9371-year to the costs of those credits included in the amounts
9372-paid by eligible retail customers in connection with
9373-electric service to no more than 1.65% of the amount paid
9374-per kilowatthour by eligible retail customers during the
9375-year ending May 31, 2009. The result of this computation
9376-shall apply to and reduce the procurement for all retail
9377-customers, and all those customers shall pay the same
9378-single, uniform cents per kilowatthour charge under
9379-subsection (k) of Section 16-108 of the Public Utilities
9380-
9381-
9382-Act. To arrive at a maximum dollar amount of zero emission
9383-credits to be paid for the particular delivery year, the
9384-resulting per kilowatthour amount shall be applied to the
9385-actual amount of kilowatthours of electricity delivered by
9386-the electric utility in the delivery year immediately
9387-prior to the procurement, to all retail customers in its
9388-service territory. Unpaid contractual volume for any
9389-delivery year shall be paid in any subsequent delivery
9390-year in which such payments can be made without exceeding
9391-the amount specified in this paragraph (2). The
9392-calculations required by this paragraph (2) shall be made
9393-only once for each procurement plan year. Once the
9394-determination as to the amount of zero emission credits to
9395-be paid is made based on the calculations set forth in this
9396-paragraph (2), no subsequent rate impact determinations
9397-shall be made and no adjustments to those contract amounts
9398-shall be allowed. All costs incurred under those contracts
9399-and in implementing this subsection (d-5) shall be
9400-recovered by the electric utility as provided in this
9401-Section.
9402-No later than June 30, 2019, the Commission shall
9403-review the limitation on the amount of zero emission
9404-credits procured under this subsection (d-5) and report to
9405-the General Assembly its findings as to whether that
9406-limitation unduly constrains the procurement of
9407-cost-effective zero emission credits.
9408-
9409-
9410-(3) Six years after the execution of a contract under
9411-this subsection (d-5), the Agency shall determine whether
9412-the actual zero emission credit payments received by the
9413-supplier over the 6-year period exceed the Average ZEC
9414-Payment. In addition, at the end of the term of a contract
9415-executed under this subsection (d-5), or at the time, if
9416-any, a zero emission facility's contract is terminated
9417-under subparagraph (E) of paragraph (1) of this subsection
9418-(d-5), then the Agency shall determine whether the actual
9419-zero emission credit payments received by the supplier
9420-over the term of the contract exceed the Average ZEC
9421-Payment, after taking into account any amounts previously
9422-credited back to the utility under this paragraph (3). If
9423-the Agency determines that the actual zero emission credit
9424-payments received by the supplier over the relevant period
9425-exceed the Average ZEC Payment, then the supplier shall
9426-credit the difference back to the utility. The amount of
9427-the credit shall be remitted to the applicable electric
9428-utility no later than 120 days after the Agency's
9429-determination, which the utility shall reflect as a credit
9430-on its retail customer bills as soon as practicable;
9431-however, the credit remitted to the utility shall not
9432-exceed the total amount of payments received by the
9433-facility under its contract.
9434-For purposes of this Section, the Average ZEC Payment
9435-shall be calculated by multiplying the quantity of zero
9436-
9437-
9438-emission credits delivered under the contract times the
9439-average contract price. The average contract price shall
9440-be determined by subtracting the amount calculated under
9441-subparagraph (B) of this paragraph (3) from the amount
9442-calculated under subparagraph (A) of this paragraph (3),
9443-as follows:
9444-(A) The average of the Social Cost of Carbon, as
9445-defined in subparagraph (B) of paragraph (1) of this
9446-subsection (d-5), during the term of the contract.
9447-(B) The average of the market price indices, as
9448-defined in subparagraph (B) of paragraph (1) of this
9449-subsection (d-5), during the term of the contract,
9450-minus the baseline market price index, as defined in
9451-subparagraph (B) of paragraph (1) of this subsection
9452-(d-5).
9453-If the subtraction yields a negative number, then the
9454-Average ZEC Payment shall be zero.
9455-(4) Cost-effective zero emission credits procured from
9456-zero emission facilities shall satisfy the applicable
9457-definitions set forth in Section 1-10 of this Act.
9458-(5) The electric utility shall retire all zero
9459-emission credits used to comply with the requirements of
9460-this subsection (d-5).
9461-(6) Electric utilities shall be entitled to recover
9462-all of the costs associated with the procurement of zero
9463-emission credits through an automatic adjustment clause
9464-
9465-
9466-tariff in accordance with subsection (k) and (m) of
9467-Section 16-108 of the Public Utilities Act, and the
9468-contracts executed under this subsection (d-5) shall
9469-provide that the utilities' payment obligations under such
9470-contracts shall be reduced if an adjustment is required
9471-under subsection (m) of Section 16-108 of the Public
9472-Utilities Act.
9473-(7) This subsection (d-5) shall become inoperative on
9474-January 1, 2028.
9475-(d-10) Nuclear Plant Assistance; carbon mitigation
9476-credits.
9477-(1) The General Assembly finds:
9478-(A) The health, welfare, and prosperity of all
9479-Illinois citizens require that the State of Illinois act
9480-to avoid and not increase carbon emissions from electric
9481-generation sources while continuing to ensure affordable,
9482-stable, and reliable electricity to all citizens.
9483-(B) Absent immediate action by the State to preserve
9484-existing carbon-free energy resources, those resources may
9485-retire, and the electric generation needs of Illinois'
9486-retail customers may be met instead by facilities that
9487-emit significant amounts of carbon pollution and other
9488-harmful air pollutants at a high social and economic cost
9489-until Illinois is able to develop other forms of clean
9490-energy.
9491-(C) The General Assembly finds that nuclear power
9492-
9493-
9494-generation is necessary for the State's transition to 100%
9495-clean energy, and ensuring continued operation of nuclear
9496-plants advances environmental and public health interests
9497-through providing carbon-free electricity while reducing
9498-the air pollution profile of the Illinois energy
9499-generation fleet.
9500-(D) The clean energy attributes of nuclear generation
9501-facilities support the State in its efforts to achieve
9502-100% clean energy.
9503-(E) The State currently invests in various forms of
9504-clean energy, including, but not limited to, renewable
9505-energy, energy efficiency, and low-emission vehicles,
9506-among others.
9507-(F) The Environmental Protection Agency commissioned
9508-an independent audit which provided a detailed assessment
9509-of the financial condition of the Illinois nuclear fleet
9510-to evaluate its financial viability and whether the
9511-environmental benefits of such resources were at risk. The
9512-report identified the risk of losing the environmental
9513-benefits of several specific nuclear units. The report
9514-also identified that the LaSalle County Generating Station
9515-will continue to operate through 2026 and therefore is not
9516-eligible to participate in the carbon mitigation credit
9517-program.
9518-(G) Nuclear plants provide carbon-free energy, which
9519-helps to avoid many health-related negative impacts for
9520-
9521-
9522-Illinois residents.
9523-(H) The procurement of carbon mitigation credits
9524-representing the environmental benefits of carbon-free
9525-generation will further the State's efforts at achieving
9526-100% clean energy and decarbonizing the electricity sector
9527-in a safe, reliable, and affordable manner. Further, the
9528-procurement of carbon emission credits will enhance the
9529-health and welfare of Illinois residents through decreased
9530-reliance on more highly polluting generation.
9531-(I) The General Assembly therefore finds it necessary
9532-to establish carbon mitigation credits to ensure decreased
9533-reliance on more carbon-intensive energy resources, for
9534-transitioning to a fully decarbonized electricity sector,
9535-and to help ensure health and welfare of the State's
9536-residents.
9537-(2) As used in this subsection:
9538-"Baseline costs" means costs used to establish a customer
9539-protection cap that have been evaluated through an independent
9540-audit of a carbon-free energy resource conducted by the
9541-Environmental Protection Agency that evaluated projected
9542-annual costs for operation and maintenance expenses; fully
9543-allocated overhead costs, which shall be allocated using the
9544-methodology developed by the Institute for Nuclear Power
9545-Operations; fuel expenditures; nonfuel capital expenditures;
9546-spent fuel expenditures; a return on working capital; the cost
9547-of operational and market risks that could be avoided by
9548-
9549-
9550-ceasing operation; and any other costs necessary for continued
9551-operations, provided that "necessary" means, for purposes of
9552-this definition, that the costs could reasonably be avoided
9553-only by ceasing operations of the carbon-free energy resource.
9554-"Carbon mitigation credit" means a tradable credit that
9555-represents the carbon emission reduction attributes of one
9556-megawatt-hour of energy produced from a carbon-free energy
9557-resource.
9558-"Carbon-free energy resource" means a generation facility
9559-that: (1) is fueled by nuclear power; and (2) is
9560-interconnected to PJM Interconnection, LLC.
9561-(3) Procurement.
9562-(A) Beginning with the delivery year commencing on
9563-June 1, 2022, the Agency shall, for electric utilities
9564-serving at least 3,000,000 retail customers in the State,
9565-seek to procure contracts for no more than approximately
9566-54,500,000 cost-effective carbon mitigation credits from
9567-carbon-free energy resources because such credits are
9568-necessary to support current levels of carbon-free energy
9569-generation and ensure the State meets its carbon dioxide
9570-emissions reduction goals. The Agency shall not make a
9571-partial award of a contract for carbon mitigation credits
9572-covering a fractional amount of a carbon-free energy
9573-resource's projected output.
9574-(B) Each carbon-free energy resource that intends to
9575-participate in a procurement shall be required to submit
9576-
9577-
9578-to the Agency the following information for the resource
9579-on or before the date established by the Agency:
9580-(i) the in-service date and remaining useful life
9581-of the carbon-free energy resource;
9582-(ii) the amount of power generated annually for
9583-each of the past 10 years, which shall be used to
9584-determine the capability of each facility;
9585-(iii) a commitment to be reflected in any contract
9586-entered into pursuant to this subsection (d-10) to
9587-continue operating the carbon-free energy resource at
9588-a capacity factor of at least 88% annually on average
9589-for the duration of the contract or contracts executed
9590-under the procurement held under this subsection
9591-(d-10), except in an instance described in
9592-subparagraph (E) of paragraph (1) of subsection (d-5)
9593-of this Section or made impracticable as a result of
9594-compliance with law or regulation;
9595-(iv) financial need and the risk of loss of the
9596-environmental benefits of such resource, which shall
9597-include the following information:
9598-(I) the carbon-free energy resource's cost
9599-projections, expressed on a per megawatt-hour
9600-basis, over the next 5 delivery years, which shall
9601-include the following: operation and maintenance
9602-expenses; fully allocated overhead costs, which
9603-shall be allocated using the methodology developed
9604-
9605-
9606-by the Institute for Nuclear Power Operations;
9607-fuel expenditures; nonfuel capital expenditures;
9608-spent fuel expenditures; a return on working
9609-capital; the cost of operational and market risks
9610-that could be avoided by ceasing operation; and
9611-any other costs necessary for continued
9612-operations, provided that "necessary" means, for
9613-purposes of this subitem (I), that the costs could
9614-reasonably be avoided only by ceasing operations
9615-of the carbon-free energy resource; and
9616-(II) the carbon-free energy resource's revenue
9617-projections, including energy, capacity, ancillary
9618-services, any other direct State support, known or
9619-anticipated federal attribute credits, known or
9620-anticipated tax credits, and any other direct
9621-federal support.
9622-The information described in this subparagraph (B) may
9623-be submitted on a confidential basis and shall be treated
9624-and maintained by the Agency, the procurement
9625-administrator, and the Commission as confidential and
9626-proprietary and exempt from disclosure under subparagraphs
9627-(a) and (g) of paragraph (1) of Section 7 of the Freedom of
9628-Information Act. The Office of the Attorney General shall
9629-have access to, and maintain the confidentiality of, such
9630-information pursuant to Section 6.5 of the Attorney
9631-General Act.
9632-
9633-
9634-(C) The Agency shall solicit bids for the contracts
9635-described in this subsection (d-10) from carbon-free
9636-energy resources that have satisfied the requirements of
9637-subparagraph (B) of this paragraph (3). The contracts
9638-procured pursuant to a procurement event shall reflect,
9639-and be subject to, the following terms, requirements, and
9640-limitations:
9641-(i) Contracts are for delivery of carbon
9642-mitigation credits, and are not energy or capacity
9643-sales contracts requiring physical delivery. Pursuant
9644-to item (iii), contract payments shall fully deduct
9645-the value of any monetized federal production tax
9646-credits, credits issued pursuant to a federal clean
9647-energy standard, and other federal credits if
9648-applicable.
9649-(ii) Contracts for carbon mitigation credits shall
9650-commence with the delivery year beginning on June 1,
9651-2022 and shall be for a term of 5 delivery years
9652-concluding on May 31, 2027.
9653-(iii) The price per carbon mitigation credit to be
9654-paid under a contract for a given delivery year shall
9655-be equal to an accepted bid price less the sum of:
9656-(I) one of the following energy price indices,
9657-selected by the bidder at the time of the bid for
9658-the term of the contract:
9659-(aa) the weighted-average hourly day-ahead
9660-
9661-
9662-price for the applicable delivery year at the
9663-busbar of all resources procured pursuant to
9664-this subsection (d-10), weighted by actual
9665-production from the resources; or
9666-(bb) the projected energy price for the
9667-PJM Interconnection, LLC Northern Illinois Hub
9668-for the applicable delivery year determined
9669-according to subitem (aa) of item (iii) of
9670-subparagraph (B) of paragraph (1) of
9671-subsection (d-5).
9672-(II) the Base Residual Auction Capacity Price
9673-for the ComEd zone as determined by PJM
9674-Interconnection, LLC, divided by 24 hours per day,
9675-for the applicable delivery year for the first 3
9676-delivery years, and then any subsequent delivery
9677-years unless the PJM Interconnection, LLC applies
9678-the Minimum Offer Price Rule to participating
9679-carbon-free energy resources because they supply
9680-carbon mitigation credits pursuant to this Section
9681-at which time, upon notice by the carbon-free
9682-energy resource to the Commission and subject to
9683-the Commission's confirmation, the value under
9684-this subitem shall be zero, as further described
9685-in the carbon mitigation credit procurement plan;
9686-and
9687-(III) any value of monetized federal tax
9688-
9689-
9690-credits, direct payments, or similar subsidy
9691-provided to the carbon-free energy resource from
9692-any unit of government that is not already
9693-reflected in energy prices.
9694-If the price-per-megawatt-hour calculation
9695-performed under item (iii) of this subparagraph (C)
9696-for a given delivery year results in a net positive
9697-value, then the electric utility counterparty to the
9698-contract shall multiply such net value by the
9699-applicable contract quantity and remit the amount to
9700-the supplier.
9701-To protect retail customers from retail rate
9702-impacts that may arise upon the initiation of carbon
9703-policy changes, if the price-per-megawatt-hour
9704-calculation performed under item (iii) of this
9705-subparagraph (C) for a given delivery year results in
9706-a net negative value, then the supplier counterparty
9707-to the contract shall multiply such net value by the
9708-applicable contract quantity and remit such amount to
9709-the electric utility counterparty. The electric
9710-utility shall reflect such amounts remitted by
9711-suppliers as a credit on its retail customer bills as
9712-soon as practicable.
9713-(iv) To ensure that retail customers in Northern
9714-Illinois do not pay more for carbon mitigation credits
9715-than the value such credits provide, and
9716-
9717-
9718-notwithstanding the provisions of this subsection
9719-(d-10), the Agency shall not accept bids for contracts
9720-that exceed a customer protection cap equal to the
9721-baseline costs of carbon-free energy resources.
9722-The baseline costs for the applicable year shall
9723-be the following:
9724-(I) For the delivery year beginning June 1,
9725-2022, the baseline costs shall be an amount equal
9726-to $30.30 per megawatt-hour.
9727-(II) For the delivery year beginning June 1,
9728-2023, the baseline costs shall be an amount equal
9729-to $32.50 per megawatt-hour.
9730-(III) For the delivery year beginning June 1,
9731-2024, the baseline costs shall be an amount equal
9732-to $33.43 per megawatt-hour.
9733-(IV) For the delivery year beginning June 1,
9734-2025, the baseline costs shall be an amount equal
9735-to $33.50 per megawatt-hour.
9736-(V) For the delivery year beginning June 1,
9737-2026, the baseline costs shall be an amount equal
9738-to $34.50 per megawatt-hour.
9739-An Environmental Protection Agency consultant
9740-forecast, included in a report issued April 14, 2021,
9741-projects that a carbon-free energy resource has the
9742-opportunity to earn on average approximately $30.28
9743-per megawatt-hour, for the sale of energy and capacity
9744-
9745-
9746-during the time period between 2022 and 2027.
9747-Therefore, the sale of carbon mitigation credits
9748-provides the opportunity to receive an additional
9749-amount per megawatt-hour in addition to the projected
9750-prices for energy and capacity.
9751-Although actual energy and capacity prices may
9752-vary from year-to-year, the General Assembly finds
9753-that this customer protection cap will help ensure
9754-that the cost of carbon mitigation credits will be
9755-less than its value, based upon the social cost of
9756-carbon identified in the Technical Support Document
9757-issued in February 2021 by the U.S. Interagency
9758-Working Group on Social Cost of Greenhouse Gases and
9759-the PJM Interconnection, LLC carbon dioxide marginal
9760-emission rate for 2020, and that a carbon-free energy
9761-resource receiving payment for carbon mitigation
9762-credits receives no more than necessary to keep those
9763-units in operation.
9764-(D) No later than 7 days after the effective date of
9765-this amendatory Act of the 102nd General Assembly, the
9766-Agency shall publish its proposed carbon mitigation credit
9767-procurement plan. The Plan shall provide that winning bids
9768-shall be selected by taking into consideration which
9769-resources best match public interest criteria that
9770-include, but are not limited to, minimizing carbon dioxide
9771-emissions that result from electricity consumed in
9772-
9773-
9774-Illinois and minimizing sulfur dioxide, nitrogen oxide,
9775-and particulate matter emissions that adversely affect the
9776-citizens of this State. The selection of winning bids
9777-shall also take into account the incremental environmental
9778-benefits resulting from the procurement or procurements,
9779-such as any existing environmental benefits that are
9780-preserved by a procurement held under this subsection
9781-(d-10) and would cease to exist if the procurement were
9782-not held, including the preservation of carbon-free energy
9783-resources. For those bidders having the same public
9784-interest criteria score, the relative ranking of such
9785-bidders shall be determined by price. The Plan shall
9786-describe in detail how each public interest factor shall
9787-be considered and weighted in the bid selection process to
9788-ensure that the public interest criteria are applied to
9789-the procurement. The Plan shall, to the extent practical
9790-and permissible by federal law, ensure that successful
9791-bidders make commercially reasonable efforts to apply for
9792-federal tax credits, direct payments, or similar subsidy
9793-programs that support carbon-free generation and for which
9794-the successful bidder is eligible. Upon publishing of the
9795-carbon mitigation credit procurement plan, copies of the
9796-plan shall be posted and made publicly available on the
9797-Agency's website. All interested parties shall have 7 days
9798-following the date of posting to provide comment to the
9799-Agency on the plan. All comments shall be posted to the
9800-
9801-
9802-Agency's website. Following the end of the comment period,
9803-but no more than 19 days later than the effective date of
9804-this amendatory Act of the 102nd General Assembly, the
9805-Agency shall revise the plan as necessary based on the
9806-comments received and file its carbon mitigation credit
9807-procurement plan with the Commission.
9808-(E) If the Commission determines that the plan is
9809-likely to result in the procurement of cost-effective
9810-carbon mitigation credits, then the Commission shall,
9811-after notice and hearing and opportunity for comment, but
9812-no later than 42 days after the Agency filed the plan,
9813-approve the plan or approve it with modification. For
9814-purposes of this subsection (d-10), "cost-effective" means
9815-carbon mitigation credits that are procured from
9816-carbon-free energy resources at prices that are within the
9817-limits specified in this paragraph (3). As part of the
9818-Commission's review and acceptance or rejection of the
9819-procurement results, the Commission shall, in its public
9820-notice of successful bidders:
9821-(i) identify how the selected carbon-free energy
9822-resources satisfy the public interest criteria
9823-described in this paragraph (3) of minimizing carbon
9824-dioxide emissions that result from electricity
9825-consumed in Illinois and minimizing sulfur dioxide,
9826-nitrogen oxide, and particulate matter emissions that
9827-adversely affect the citizens of this State;
9828-
9829-
9830-(ii) specifically address how the selection of
9831-carbon-free energy resources takes into account the
9832-incremental environmental benefits resulting from the
9833-procurement, including any existing environmental
9834-benefits that are preserved by the procurements held
9835-under this amendatory Act of the 102nd General
9836-Assembly and would have ceased to exist if the
9837-procurements had not been held, such as the
9838-preservation of carbon-free energy resources;
9839-(iii) quantify the environmental benefit of
9840-preserving the carbon-free energy resources procured
9841-pursuant to this subsection (d-10), including the
9842-following:
9843-(I) an assessment value of avoided greenhouse
9844-gas emissions measured as the product of the
9845-carbon-free energy resources' output over the
9846-contract term, using generally accepted
9847-methodologies for the valuation of avoided
9848-emissions; and
9849-(II) an assessment of costs of replacement
9850-with other carbon-free energy resources and
9851-renewable energy resources, including wind and
9852-photovoltaic generation, based upon an assessment
9853-of the prices paid for renewable energy credits
9854-through programs and procurements conducted
9855-pursuant to subsection (c) of Section 1-75 of this
9856-
9857-
9858-Act, and the additional storage necessary to
9859-produce the same or similar capability of matching
9860-customer usage patterns.
9861-(F) The procurements described in this paragraph (3),
9862-including, but not limited to, the execution of all
9863-contracts procured, shall be completed no later than
9864-December 3, 2021. The procurement and plan approval
9865-processes required by this paragraph (3) shall be
9866-conducted in conjunction with the procurement and plan
9867-approval processes required by Section 16-111.5 of the
9868-Public Utilities Act, to the extent practicable. However,
9869-the Agency and Commission may, as appropriate, modify the
9870-various dates and timelines under this subparagraph and
9871-subparagraphs (D) and (E) of this paragraph (3) to meet
9872-the December 3, 2021 contract execution deadline.
9873-Following the completion of such procurements, and
9874-consistent with this paragraph (3), the Agency shall
9875-calculate the payments to be made under each contract in a
9876-timely fashion.
9877-(F-1) Costs incurred by the electric utility pursuant
9878-to a contract authorized by this subsection (d-10) shall
9879-be deemed prudently incurred and reasonable in amount, and
9880-the electric utility shall be entitled to full cost
9881-recovery pursuant to a tariff or tariffs filed with the
9882-Commission.
9883-(G) The counterparty electric utility shall retire all
9884-
9885-
9886-carbon mitigation credits used to comply with the
9887-requirements of this subsection (d-10).
9888-(H) If a carbon-free energy resource is sold to
9889-another owner, the rights, obligations, and commitments
9890-under this subsection (d-10) shall continue to the
9891-subsequent owner.
9892-(I) This subsection (d-10) shall become inoperative on
9893-January 1, 2028.
9894-(e) The draft procurement plans are subject to public
9895-comment, as required by Section 16-111.5 of the Public
9896-Utilities Act.
9897-(f) The Agency shall submit the final procurement plan to
9898-the Commission. The Agency shall revise a procurement plan if
9899-the Commission determines that it does not meet the standards
9900-set forth in Section 16-111.5 of the Public Utilities Act.
9901-(g) The Agency shall assess fees to each affected utility
9902-to recover the costs incurred in preparation of the annual
9903-procurement plan for the utility.
9904-(h) The Agency shall assess fees to each bidder to recover
9905-the costs incurred in connection with a competitive
9906-procurement process.
9907-(i) A renewable energy credit, carbon emission credit,
9908-zero emission credit, or carbon mitigation credit can only be
9909-used once to comply with a single portfolio or other standard
9910-as set forth in subsection (c), subsection (d), or subsection
9911-(d-5) of this Section, respectively. A renewable energy
9912-
9913-
9914-credit, carbon emission credit, zero emission credit, or
9915-carbon mitigation credit cannot be used to satisfy the
9916-requirements of more than one standard. If more than one type
9917-of credit is issued for the same megawatt hour of energy, only
9918-one credit can be used to satisfy the requirements of a single
9919-standard. After such use, the credit must be retired together
9920-with any other credits issued for the same megawatt hour of
9921-energy.
9922-(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
9923-(20 ILCS 3855/1-129 new)
9924-Sec. 1-129. Policy study.
9925-(a) The General Assembly finds that:
9926-(1) in 2021, Illinois became the first state in the
9927-Midwest to mandate a clean energy future when it enacted
9928-the Climate and Equitable Jobs Act (Public Act 102-662);
9929-(2) through the Climate and Equitable Jobs Act,
9930-Illinois established a plan to completely decarbonize its
9931-energy sector by 2050 in an equitable manner that invests
9932-in the State's workforce;
9933-(3) technology in the energy sector continues to
9934-advance creating cleaner and more efficient options to
9935-help the State attain the target of 50% renewable energy
9936-by 2040; and
9937-(4) while numerous legislative proposals purport to
9938-help the State on its path to equitably attain 100% clean
9939-
9940-
9941-energy, it is important to have a neutral party with
9942-relevant expertise evaluate each proposal to ensure it is
9943-consistent with the State's goals and maximizes benefits
9944-to Illinois residents.
9945-(b) The General Assembly intends:
9946-(1) to prioritize the public interest over the profit
9947-motives of utilities and private developers; and
9948-(2) to invest in projects that reduce harmful
9949-emissions and contribute to the clean economy.
9950-(c) The Agency shall commission and publish a policy study
9951-to evaluate the potential impacts of the proposals described
9952-in subsection (g). The potential impacts may include, but are
9953-not limited to, support for Illinois' decarbonization goals,
9954-the environment, grid reliability, carbon and other pollutant
9955-emissions, resource adequacy, long-term and short-term
9956-electric rates, environmental justice communities, jobs, and
9957-the economy. Where applicable, the study shall address the
9958-impact of a proposal with respect to reports by the
9959-Midcontinent Independent System Operator, PJM, and North
9960-American Electric Reliability Corporation staff that Illinois
9961-has begun to experience resource adequacy issues.
9962-(d) The Agency shall retain the services of technical and
9963-policy experts with energy market and other relevant fields of
9964-expertise. The technical and policy experts may include the
9965-existing planning and procurement consultant and applicable
9966-subcontractors and the procurement administrator and
9967-
9968-
9969-applicable subcontractors. The Illinois Commerce Commission,
9970-the Illinois Environmental Protection Agency, and the
9971-Department of Commerce and Economic Opportunity shall provide
9972-support to and consult with the Agency. The Agency may consult
9973-with other State agencies, commissions, or task forces as
9974-needed. The Agency may consult with and seek assistance from
9975-the Regional Transmission Organizations PJM and MISO.
9976-(e) The Agency may solicit information, including
9977-confidential or proprietary information, from entities likely
9978-to be impacted by the proposals described in subsection (g)
9979-for purposes of this study. Any information designated as
9980-confidential or proprietary information by the entity
9981-providing the information shall be kept confidential by the
9982-Agency, its consultants, and its contractors and is not
9983-subject to disclosure under the Freedom of Information Act.
9984-(f) The Agency shall publish a final policy study no later
9985-than March 1, 2024 and suitable copies shall be delivered to
9986-the Governor and members of the General Assembly. Prior to
9987-publishing the final policy study, the Agency shall publish a
9988-preliminary draft of the policy study and provide for a 20-day
9989-open public comment period. The Agency shall review public
9990-comments and publish a final policy study no later than 20 days
9991-after the public comment period ends. The policy study shall
9992-include policy recommendations to the General Assembly.
9993-(g) The policy study shall evaluate the following
9994-proposals and may consider or suggest additional or
9995-
9996-
9997-alternative items:
9998-(1) House Bill 2132 of the 103rd General Assembly as
9999-it passed out of the House on March 24, 2023 or a similar
10000-pilot program to establish one new utility-scale offshore
10001-wind project capable of producing at least 700,000
10002-megawatt hours annually for at least 20 years in Lake
10003-Michigan that includes an equity and inclusion plan to
10004-create job opportunities for underrepresented populations
10005-in addition to equity investment eligible communities and
10006-a fully executed project labor agreement. The pilot
10007-program may result in an increase in the amounts paid by
10008-eligible retail customers in connection with electric
10009-service that shall not exceed 0.25% of the amount paid per
10010-kilowatt hour by those customers during the year ending
10011-May 31, 2009.
10012-(2) Senate Bill 1587 and amendments to Senate Bill
10013-1587 of the 103rd General Assembly filed prior to May 31,
10014-2023 or a similar proposal for the deployment of energy
10015-storage systems supported by the State through the
10016-development of energy storage credit targets for the
10017-Agency to procure on behalf of Illinois electric utilities
10018-from privately owned, large scale energy storage providers
10019-using energy storage contracts of at least 15 year
10020-durations based on a competitive energy storage
10021-procurement plan developed by the Agency designed to
10022-enhance overall grid reliability, flexibility and
10023-
10024-
10025-efficiency, and to lower electricity prices. The plan must
10026-require participants to comply with the equity
10027-accountability system requirements in subsection (c-10) of
10028-Section 1-75 and to submit proof of project labor
10029-agreements. For purposes of this policy study, it should
10030-be assumed that the costs associated with procuring energy
10031-storage credits shall be recovered through tariffed
10032-charges assessed across all retail customers in a uniform
10033-cents per kilowatt hour charge. In addition to large scale
10034-energy storage, the proposal shall also include the
10035-creation of distributed level energy storage programs
10036-through utility tariffs as approved by the Illinois
10037-Commerce Commission. The programs shall include a
10038-residential and a commercial storage program that would
10039-allow customer-sited batteries to provide grid benefits
10040-and cost-savings to ratepayers. The proposal shall also
10041-include a community solar energy storage program intended
10042-to serve as a peak reduction program by utilizing
10043-community solar paired storage projects deployed daily in
10044-summer months during peak hours. The installation of the
10045-energy storage systems associated with these distributed
10046-renewable systems must comply with the prevailing wage
10047-requirements described in subparagraph (Q) of paragraph
10048-(1) of subsection (c) of Section 1-75. The policy study
10049-shall include a review of the ability of coal-fueled
10050-generating plant sites located in Illinois that have been
10051-
10052-
10053-closed since 2016 or are scheduled to be closed by 2030 to
10054-support the installation of energy storage systems and
10055-potential associated interconnection costs. This review
10056-shall include: (i) whether those sites are already in a
10057-regional transmission organization interconnection queue,
10058-including MISO's replacement power interconnection queue,
10059-or would be submitted to the replacement power
10060-interconnection queue no later than September 1, 2023,
10061-and, if a site is in a queue, the site's position in the
10062-queue; and (ii) how soon those sites could support
10063-development and installation of energy storage systems and
10064-any barriers to that development. This review shall also
10065-include consultation with electric generation facility
10066-owners or operators and renewable developers that own or
10067-are in the process of developing energy storage systems in
10068-Illinois or that have experience developing energy storage
10069-systems in other States.
10070-(3) A policy establishing high voltage direct current
10071-renewable energy credits that requires the Agency to
10072-procure contracts with at least 25 years but no more than
10073-40 years duration for the delivery of renewable energy
10074-credits on behalf of electric utilities in Illinois with
10075-at least 300,000 customers from a high voltage direct
10076-current transmission facility with more than 100 miles of
10077-underground transmission lines in this State capable of
10078-transmitting electricity at or above 525 kilovolts and
10079-
10080-
10081-delivering power in the PJM market. High voltage direct
10082-current renewable energy credits procured by the Agency
10083-pursuant to this policy would not count toward the
10084-renewable energy credit purchase targets in subsection (c)
10085-of Section 1-75. The study shall also evaluate: (i) this
10086-policy's potential for wholesale electricity price impacts
10087-in both PJM and MISO, the net rate impact to Illinois
10088-ratepayers, and the impact on grid reliability and
10089-resilience; (ii) whether a 25-year to 40-year guaranteed
10090-contract is necessary to build a high voltage direct
10091-current transmission facility; (iii) whether specific high
10092-voltage direct current transmission facility projects are
10093-committed to Illinois' fair labor and equity standards;
10094-and (iv) whether the policy creates incentives for
10095-renewable development outside of Illinois rather than
10096-within the State.
10097-Section 15. The Illinois Procurement Code is amended by
10098-changing Section 1-10 as follows:
10099-(30 ILCS 500/1-10)
10100-Sec. 1-10. Application.
10101-(a) This Code applies only to procurements for which
10102-bidders, offerors, potential contractors, or contractors were
10103-first solicited on or after July 1, 1998. This Code shall not
10104-be construed to affect or impair any contract, or any
10105-
10106-
10107-provision of a contract, entered into based on a solicitation
10108-prior to the implementation date of this Code as described in
10109-Article 99, including, but not limited to, any covenant
10110-entered into with respect to any revenue bonds or similar
10111-instruments. All procurements for which contracts are
10112-solicited between the effective date of Articles 50 and 99 and
10113-July 1, 1998 shall be substantially in accordance with this
10114-Code and its intent.
10115-(b) This Code shall apply regardless of the source of the
10116-funds with which the contracts are paid, including federal
10117-assistance moneys. This Code shall not apply to:
10118-(1) Contracts between the State and its political
10119-subdivisions or other governments, or between State
10120-governmental bodies, except as specifically provided in
10121-this Code.
10122-(2) Grants, except for the filing requirements of
10123-Section 20-80.
10124-(3) Purchase of care, except as provided in Section
10125-5-30.6 of the Illinois Public Aid Code and this Section.
10126-(4) Hiring of an individual as an employee and not as
10127-an independent contractor, whether pursuant to an
10128-employment code or policy or by contract directly with
10129-that individual.
10130-(5) Collective bargaining contracts.
10131-(6) Purchase of real estate, except that notice of
10132-this type of contract with a value of more than $25,000
10133-
10134-
10135-must be published in the Procurement Bulletin within 10
10136-calendar days after the deed is recorded in the county of
10137-jurisdiction. The notice shall identify the real estate
10138-purchased, the names of all parties to the contract, the
10139-value of the contract, and the effective date of the
10140-contract.
10141-(7) Contracts necessary to prepare for anticipated
10142-litigation, enforcement actions, or investigations,
10143-provided that the chief legal counsel to the Governor
10144-shall give his or her prior approval when the procuring
10145-agency is one subject to the jurisdiction of the Governor,
10146-and provided that the chief legal counsel of any other
10147-procuring entity subject to this Code shall give his or
10148-her prior approval when the procuring entity is not one
10149-subject to the jurisdiction of the Governor.
10150-(8) (Blank).
10151-(9) Procurement expenditures by the Illinois
10152-Conservation Foundation when only private funds are used.
10153-(10) (Blank).
10154-(11) Public-private agreements entered into according
10155-to the procurement requirements of Section 20 of the
10156-Public-Private Partnerships for Transportation Act and
10157-design-build agreements entered into according to the
10158-procurement requirements of Section 25 of the
10159-Public-Private Partnerships for Transportation Act.
10160-(12) (A) Contracts for legal, financial, and other
10161-
10162-
10163-professional and artistic services entered into by the
10164-Illinois Finance Authority in which the State of Illinois
10165-is not obligated. Such contracts shall be awarded through
10166-a competitive process authorized by the members of the
10167-Illinois Finance Authority and are subject to Sections
10168-5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,
10169-as well as the final approval by the members of the
10170-Illinois Finance Authority of the terms of the contract.
10171-(B) Contracts for legal and financial services entered
10172-into by the Illinois Housing Development Authority in
10173-connection with the issuance of bonds in which the State
10174-of Illinois is not obligated. Such contracts shall be
10175-awarded through a competitive process authorized by the
10176-members of the Illinois Housing Development Authority and
10177-are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
10178-and 50-37 of this Code, as well as the final approval by
10179-the members of the Illinois Housing Development Authority
10180-of the terms of the contract.
10181-(13) Contracts for services, commodities, and
10182-equipment to support the delivery of timely forensic
10183-science services in consultation with and subject to the
10184-approval of the Chief Procurement Officer as provided in
10185-subsection (d) of Section 5-4-3a of the Unified Code of
10186-Corrections, except for the requirements of Sections
10187-20-60, 20-65, 20-70, and 20-160 and Article 50 of this
10188-Code; however, the Chief Procurement Officer may, in
10189-
10190-
10191-writing with justification, waive any certification
10192-required under Article 50 of this Code. For any contracts
10193-for services which are currently provided by members of a
10194-collective bargaining agreement, the applicable terms of
10195-the collective bargaining agreement concerning
10196-subcontracting shall be followed.
10197-On and after January 1, 2019, this paragraph (13),
10198-except for this sentence, is inoperative.
10199-(14) Contracts for participation expenditures required
10200-by a domestic or international trade show or exhibition of
10201-an exhibitor, member, or sponsor.
10202-(15) Contracts with a railroad or utility that
10203-requires the State to reimburse the railroad or utilities
10204-for the relocation of utilities for construction or other
10205-public purpose. Contracts included within this paragraph
10206-(15) shall include, but not be limited to, those
10207-associated with: relocations, crossings, installations,
10208-and maintenance. For the purposes of this paragraph (15),
10209-"railroad" means any form of non-highway ground
10210-transportation that runs on rails or electromagnetic
10211-guideways and "utility" means: (1) public utilities as
10212-defined in Section 3-105 of the Public Utilities Act, (2)
10213-telecommunications carriers as defined in Section 13-202
10214-of the Public Utilities Act, (3) electric cooperatives as
10215-defined in Section 3.4 of the Electric Supplier Act, (4)
10216-telephone or telecommunications cooperatives as defined in
10217-
10218-
10219-Section 13-212 of the Public Utilities Act, (5) rural
10220-water or waste water systems with 10,000 connections or
10221-less, (6) a holder as defined in Section 21-201 of the
10222-Public Utilities Act, and (7) municipalities owning or
10223-operating utility systems consisting of public utilities
10224-as that term is defined in Section 11-117-2 of the
10225-Illinois Municipal Code.
10226-(16) Procurement expenditures necessary for the
10227-Department of Public Health to provide the delivery of
10228-timely newborn screening services in accordance with the
10229-Newborn Metabolic Screening Act.
10230-(17) Procurement expenditures necessary for the
10231-Department of Agriculture, the Department of Financial and
10232-Professional Regulation, the Department of Human Services,
10233-and the Department of Public Health to implement the
10234-Compassionate Use of Medical Cannabis Program and Opioid
10235-Alternative Pilot Program requirements and ensure access
10236-to medical cannabis for patients with debilitating medical
10237-conditions in accordance with the Compassionate Use of
10238-Medical Cannabis Program Act.
10239-(18) This Code does not apply to any procurements
10240-necessary for the Department of Agriculture, the
10241-Department of Financial and Professional Regulation, the
10242-Department of Human Services, the Department of Commerce
10243-and Economic Opportunity, and the Department of Public
10244-Health to implement the Cannabis Regulation and Tax Act if
10245-
10246-
10247-the applicable agency has made a good faith determination
10248-that it is necessary and appropriate for the expenditure
10249-to fall within this exemption and if the process is
10250-conducted in a manner substantially in accordance with the
10251-requirements of Sections 20-160, 25-60, 30-22, 50-5,
10252-50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
10253-50-36, 50-37, 50-38, and 50-50 of this Code; however, for
10254-Section 50-35, compliance applies only to contracts or
10255-subcontracts over $100,000. Notice of each contract
10256-entered into under this paragraph (18) that is related to
10257-the procurement of goods and services identified in
10258-paragraph (1) through (9) of this subsection shall be
10259-published in the Procurement Bulletin within 14 calendar
10260-days after contract execution. The Chief Procurement
10261-Officer shall prescribe the form and content of the
10262-notice. Each agency shall provide the Chief Procurement
10263-Officer, on a monthly basis, in the form and content
10264-prescribed by the Chief Procurement Officer, a report of
10265-contracts that are related to the procurement of goods and
10266-services identified in this subsection. At a minimum, this
10267-report shall include the name of the contractor, a
10268-description of the supply or service provided, the total
10269-amount of the contract, the term of the contract, and the
10270-exception to this Code utilized. A copy of any or all of
10271-these contracts shall be made available to the Chief
10272-Procurement Officer immediately upon request. The Chief
10273-
10274-
10275-Procurement Officer shall submit a report to the Governor
10276-and General Assembly no later than November 1 of each year
10277-that includes, at a minimum, an annual summary of the
10278-monthly information reported to the Chief Procurement
10279-Officer. This exemption becomes inoperative 5 years after
10280-June 25, 2019 (the effective date of Public Act 101-27).
10281-(19) Acquisition of modifications or adjustments,
10282-limited to assistive technology devices and assistive
10283-technology services, adaptive equipment, repairs, and
10284-replacement parts to provide reasonable accommodations (i)
10285-that enable a qualified applicant with a disability to
10286-complete the job application process and be considered for
10287-the position such qualified applicant desires, (ii) that
10288-modify or adjust the work environment to enable a
10289-qualified current employee with a disability to perform
10290-the essential functions of the position held by that
10291-employee, (iii) to enable a qualified current employee
10292-with a disability to enjoy equal benefits and privileges
10293-of employment as are enjoyed by other similarly situated
10294-employees without disabilities, and (iv) that allow a
10295-customer, client, claimant, or member of the public
10296-seeking State services full use and enjoyment of and
10297-access to its programs, services, or benefits.
10298-For purposes of this paragraph (19):
10299-"Assistive technology devices" means any item, piece
10300-of equipment, or product system, whether acquired
10301-
10302-
10303-commercially off the shelf, modified, or customized, that
10304-is used to increase, maintain, or improve functional
10305-capabilities of individuals with disabilities.
10306-"Assistive technology services" means any service that
10307-directly assists an individual with a disability in
10308-selection, acquisition, or use of an assistive technology
10309-device.
10310-"Qualified" has the same meaning and use as provided
10311-under the federal Americans with Disabilities Act when
10312-describing an individual with a disability.
10313-(20) Procurement expenditures necessary for the
10314-Illinois Commerce Commission to hire third-party
10315-facilitators pursuant to Sections 16-105.17 and 16-108.18
10316-of the Public Utilities Act or an ombudsman pursuant to
10317-Section 16-107.5 of the Public Utilities Act, a
10318-facilitator pursuant to Section 16-105.17 of the Public
10319-Utilities Act, or a grid auditor pursuant to Section
10320-16-105.10 of the Public Utilities Act.
10321-(21) Procurement expenditures for the purchase,
10322-renewal, and expansion of software, software licenses, or
10323-software maintenance agreements that support the efforts
10324-of the Illinois State Police to enforce, regulate, and
10325-administer the Firearm Owners Identification Card Act, the
10326-Firearm Concealed Carry Act, the Firearms Restraining
10327-Order Act, the Firearm Dealer License Certification Act,
10328-the Law Enforcement Agencies Data System (LEADS), the
10329-
10330-
10331-Uniform Crime Reporting Act, the Criminal Identification
10332-Act, the Illinois Uniform Conviction Information Act, and
10333-the Gun Trafficking Information Act, or establish or
10334-maintain record management systems necessary to conduct
10335-human trafficking investigations or gun trafficking or
10336-other stolen firearm investigations. This paragraph (21)
10337-applies to contracts entered into on or after January 10,
10338-2023 (the effective date of Public Act 102-1116) this
10339-amendatory Act of the 102nd General Assembly and the
10340-renewal of contracts that are in effect on January 10,
10341-2023 (the effective date of Public Act 102-1116) this
10342-amendatory Act of the 102nd General Assembly.
10343-(22) Contracts for project management services and
10344-system integration services required for the completion of
10345-the State's enterprise resource planning project. This
10346-exemption becomes inoperative 5 years after June 7, 2023
10347-(the effective date of the changes made to this Section by
10348-Public Act 103-8) this amendatory Act of the 103rd General
10349-Assembly. This paragraph (22) applies to contracts entered
10350-into on or after June 7, 2023 (the effective date of the
10351-changes made to this Section by Public Act 103-8) this
10352-amendatory Act of the 103rd General Assembly and the
10353-renewal of contracts that are in effect on June 7, 2023
10354-(the effective date of the changes made to this Section by
10355-Public Act 103-8) this amendatory Act of the 103rd General
10356-Assembly.
10357-
10358-
10359-(23) (22) Procurements necessary for the Department of
10360-Insurance to implement the Illinois Health Benefits
10361-Exchange Law if the Department of Insurance has made a
10362-good faith determination that it is necessary and
10363-appropriate for the expenditure to fall within this
10364-exemption. The procurement process shall be conducted in a
10365-manner substantially in accordance with the requirements
10366-of Sections 20-160 and 25-60 and Article 50 of this Code. A
10367-copy of these contracts shall be made available to the
10368-Chief Procurement Officer immediately upon request. This
10369-paragraph is inoperative 5 years after June 27, 2023 (the
10370-effective date of Public Act 103-103) this amendatory Act
10371-of the 103rd General Assembly.
10372-Notwithstanding any other provision of law, for contracts
10373-with an annual value of more than $100,000 entered into on or
10374-after October 1, 2017 under an exemption provided in any
10375-paragraph of this subsection (b), except paragraph (1), (2),
10376-or (5), each State agency shall post to the appropriate
10377-procurement bulletin the name of the contractor, a description
10378-of the supply or service provided, the total amount of the
10379-contract, the term of the contract, and the exception to the
10380-Code utilized. The chief procurement officer shall submit a
10381-report to the Governor and General Assembly no later than
10382-November 1 of each year that shall include, at a minimum, an
10383-annual summary of the monthly information reported to the
10384-chief procurement officer.
10385-
10386-
10387-(c) This Code does not apply to the electric power
10388-procurement process provided for under Section 1-75 of the
10389-Illinois Power Agency Act and Section 16-111.5 of the Public
10390-Utilities Act. This Code does not apply to the procurement of
10391-technical and policy experts pursuant to Section 1-129 of the
10392-Illinois Power Agency Act.
10393-(d) Except for Section 20-160 and Article 50 of this Code,
10394-and as expressly required by Section 9.1 of the Illinois
10395-Lottery Law, the provisions of this Code do not apply to the
10396-procurement process provided for under Section 9.1 of the
10397-Illinois Lottery Law.
10398-(e) This Code does not apply to the process used by the
10399-Capital Development Board to retain a person or entity to
10400-assist the Capital Development Board with its duties related
10401-to the determination of costs of a clean coal SNG brownfield
10402-facility, as defined by Section 1-10 of the Illinois Power
10403-Agency Act, as required in subsection (h-3) of Section 9-220
10404-of the Public Utilities Act, including calculating the range
10405-of capital costs, the range of operating and maintenance
10406-costs, or the sequestration costs or monitoring the
10407-construction of clean coal SNG brownfield facility for the
10408-full duration of construction.
10409-(f) (Blank).
10410-(g) (Blank).
10411-(h) This Code does not apply to the process to procure or
10412-contracts entered into in accordance with Sections 11-5.2 and
10413-
10414-
10415-11-5.3 of the Illinois Public Aid Code.
10416-(i) Each chief procurement officer may access records
10417-necessary to review whether a contract, purchase, or other
10418-expenditure is or is not subject to the provisions of this
10419-Code, unless such records would be subject to attorney-client
10420-privilege.
10421-(j) This Code does not apply to the process used by the
10422-Capital Development Board to retain an artist or work or works
10423-of art as required in Section 14 of the Capital Development
10424-Board Act.
10425-(k) This Code does not apply to the process to procure
10426-contracts, or contracts entered into, by the State Board of
10427-Elections or the State Electoral Board for hearing officers
10428-appointed pursuant to the Election Code.
10429-(l) This Code does not apply to the processes used by the
10430-Illinois Student Assistance Commission to procure supplies and
10431-services paid for from the private funds of the Illinois
10432-Prepaid Tuition Fund. As used in this subsection (l), "private
10433-funds" means funds derived from deposits paid into the
10434-Illinois Prepaid Tuition Trust Fund and the earnings thereon.
10435-(m) This Code shall apply regardless of the source of
10436-funds with which contracts are paid, including federal
10437-assistance moneys. Except as specifically provided in this
10438-Code, this Code shall not apply to procurement expenditures
10439-necessary for the Department of Public Health to conduct the
10440-Healthy Illinois Survey in accordance with Section 2310-431 of
10441-
10442-
10443-the Department of Public Health Powers and Duties Law of the
10444-Civil Administrative Code of Illinois.
10445-(Source: P.A. 102-175, eff. 7-29-21; 102-483, eff 1-1-22;
10446-102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff.
10447-9-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22;
10448-102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-103, eff.
10449-6-27-23; revised 9-5-23.)
10450-Section 20. The Counties Code is amended by changing
10451-Section 5-12020 as follows:
10452-(55 ILCS 5/5-12020)
10453-Sec. 5-12020. Commercial wind energy facilities and
10454-commercial solar energy facilities.
10455-(a) As used in this Section:
10456-"Commercial solar energy facility" means a "commercial
10457-solar energy system" as defined in Section 10-720 of the
10458-Property Tax Code. "Commercial solar energy facility" does not
10459-mean a utility-scale solar energy facility being constructed
10460-at a site that was eligible to participate in a procurement
10461-event conducted by the Illinois Power Agency pursuant to
10462-subsection (c-5) of Section 1-75 of the Illinois Power Agency
10463-Act.
10464-"Commercial wind energy facility" means a wind energy
10465-conversion facility of equal or greater than 500 kilowatts in
10466-total nameplate generating capacity. "Commercial wind energy
10467-
10468-
10469-facility" includes a wind energy conversion facility seeking
10470-an extension of a permit to construct granted by a county or
10471-municipality before January 27, 2023 (the effective date of
10472-Public Act 102-1123) this amendatory Act of the 102nd General
10473-Assembly.
10474-"Facility owner" means (i) a person with a direct
10475-ownership interest in a commercial wind energy facility or a
10476-commercial solar energy facility, or both, regardless of
10477-whether the person is involved in acquiring the necessary
10478-rights, permits, and approvals or otherwise planning for the
10479-construction and operation of the facility, and (ii) at the
10480-time the facility is being developed, a person who is acting as
10481-a developer of the facility by acquiring the necessary rights,
10482-permits, and approvals or by planning for the construction and
10483-operation of the facility, regardless of whether the person
10484-will own or operate the facility.
10485-"Nonparticipating property" means real property that is
10486-not a participating property.
10487-"Nonparticipating residence" means a residence that is
10488-located on nonparticipating property and that is existing and
10489-occupied on the date that an application for a permit to
10490-develop the commercial wind energy facility or the commercial
10491-solar energy facility is filed with the county.
10492-"Occupied community building" means any one or more of the
10493-following buildings that is existing and occupied on the date
10494-that the application for a permit to develop the commercial
10495-
10496-
10497-wind energy facility or the commercial solar energy facility
10498-is filed with the county: a school, place of worship, day care
10499-facility, public library, or community center.
10500-"Participating property" means real property that is the
10501-subject of a written agreement between a facility owner and
10502-the owner of the real property that provides the facility
10503-owner an easement, option, lease, or license to use the real
10504-property for the purpose of constructing a commercial wind
10505-energy facility, a commercial solar energy facility, or
10506-supporting facilities. "Participating property" also includes
10507-real property that is owned by a facility owner for the purpose
10508-of constructing a commercial wind energy facility, a
10509-commercial solar energy facility, or supporting facilities.
10510-"Participating residence" means a residence that is
10511-located on participating property and that is existing and
10512-occupied on the date that an application for a permit to
10513-develop the commercial wind energy facility or the commercial
10514-solar energy facility is filed with the county.
10515-"Protected lands" means real property that is:
10516-(1) subject to a permanent conservation right
10517-consistent with the Real Property Conservation Rights Act;
10518-or
10519-(2) registered or designated as a nature preserve,
10520-buffer, or land and water reserve under the Illinois
10521-Natural Areas Preservation Act.
10522-"Supporting facilities" means the transmission lines,
10523-
10524-
10525-substations, access roads, meteorological towers, storage
10526-containers, and equipment associated with the generation and
10527-storage of electricity by the commercial wind energy facility
10528-or commercial solar energy facility.
10529-"Wind tower" includes the wind turbine tower, nacelle, and
10530-blades.
10531-(b) Notwithstanding any other provision of law or whether
10532-the county has formed a zoning commission and adopted formal
10533-zoning under Section 5-12007, a county may establish standards
10534-for commercial wind energy facilities, commercial solar energy
10535-facilities, or both. The standards may include all of the
10536-requirements specified in this Section but may not include
10537-requirements for commercial wind energy facilities or
10538-commercial solar energy facilities that are more restrictive
10539-than specified in this Section. A county may also regulate the
10540-siting of commercial wind energy facilities with standards
10541-that are not more restrictive than the requirements specified
10542-in this Section in unincorporated areas of the county that are
10543-outside the zoning jurisdiction of a municipality and that are
10544-outside the 1.5-mile radius surrounding the zoning
10545-jurisdiction of a municipality.
10546-(c) If a county has elected to establish standards under
10547-subsection (b), before the county grants siting approval or a
10548-special use permit for a commercial wind energy facility or a
10549-commercial solar energy facility, or modification of an
10550-approved siting or special use permit, the county board of the
10551-
10552-
10553-county in which the facility is to be sited or the zoning board
10554-of appeals for the county shall hold at least one public
10555-hearing. The public hearing shall be conducted in accordance
10556-with the Open Meetings Act and shall be held not more than 60
10557-45 days after the filing of the application for the facility.
10558-The county shall allow interested parties to a special use
10559-permit an opportunity to present evidence and to cross-examine
10560-witnesses at the hearing, but the county may impose reasonable
10561-restrictions on the public hearing, including reasonable time
10562-limitations on the presentation of evidence and the
10563-cross-examination of witnesses. The county shall also allow
10564-public comment at the public hearing in accordance with the
10565-Open Meetings Act. The county shall make its siting and
10566-permitting decisions not more than 30 days after the
10567-conclusion of the public hearing. Notice of the hearing shall
10568-be published in a newspaper of general circulation in the
10569-county. A facility owner must enter into an agricultural
10570-impact mitigation agreement with the Department of Agriculture
10571-prior to the date of the required public hearing. A commercial
10572-wind energy facility owner seeking an extension of a permit
10573-granted by a county prior to July 24, 2015 (the effective date
10574-of Public Act 99-132) must enter into an agricultural impact
10575-mitigation agreement with the Department of Agriculture prior
10576-to a decision by the county to grant the permit extension.
10577-Counties may allow test wind towers or test solar energy
10578-systems to be sited without formal approval by the county
10579-
10580-
10581-board.
10582-(d) A county with an existing zoning ordinance in conflict
10583-with this Section shall amend that zoning ordinance to be in
10584-compliance with this Section within 120 days after January 27,
10585-2023 (the effective date of Public Act 102-1123) this
10586-amendatory Act of the 102nd General Assembly.
10587-(e) A county may require:
10588-(1) a wind tower of a commercial wind energy facility
10589-to be sited as follows, with setback distances measured
10590-from the center of the base of the wind tower:
10591-Setback Description Setback Distance
10592-Occupied Community 2.1 times the maximum blade tip
10593-Buildings height of the wind tower to the
10594-nearest point on the outside
10595-wall of the structure
10596-Participating Residences 1.1 times the maximum blade tip
10597-height of the wind tower to the
10598-nearest point on the outside
10599-wall of the structure
10600-Nonparticipating Residences 2.1 times the maximum blade tip
10601-height of the wind tower to the
10602-nearest point on the outside
10603-
10604-
10605-wall of the structure
10606-Boundary Lines of None
10607-Participating Property
10608-Boundary Lines of 1.1 times the maximum blade tip
10609-Nonparticipating Property height of the wind tower to the
10610-nearest point on the property
10611-line of the nonparticipating
10612-property
10613-Public Road Rights-of-Way 1.1 times the maximum blade tip
10614-height of the wind tower
10615-to the center point of the
10616-public road right-of-way
10617-Overhead Communication and 1.1 times the maximum blade tip
10618-Electric Transmission height of the wind tower to the
10619-and Distribution Facilities nearest edge of the property
10620-(Not Including Overhead line, easement, or
10621-Utility Service Lines to right-of-way right of way
10622-Individual Houses or containing the overhead line
10623-Outbuildings)
10624-Overhead Utility Service None
10625-Lines to Individual
10626-
10627-
10628-Houses or Outbuildings
10629-Fish and Wildlife Areas 2.1 times the maximum blade
10630-and Illinois Nature tip height of the wind tower
10631-Preserve Commission to the nearest point on the
10632-Protected Lands property line of the fish and
10633-wildlife area or protected
10634-land
10635-This Section does not exempt or excuse compliance with
10636-electric facility clearances approved or required by the
10637-National Electrical Code, The National Electrical Safety
10638-Code, Illinois Commerce Commission, Federal Energy
10639-Regulatory Commission, and their designees or successors.
10640-(2) a wind tower of a commercial wind energy facility
10641-to be sited so that industry standard computer modeling
10642-indicates that any occupied community building or
10643-nonparticipating residence will not experience more than
10644-30 hours per year of shadow flicker under planned
10645-operating conditions;
10646-(3) a commercial solar energy facility to be sited as
10647-follows, with setback distances measured from the nearest
10648-edge of any component of the facility:
10649-Setback Description Setback Distance
10650-
10651-
10652-Occupied Community 150 feet from the nearest
10653-Buildings and Dwellings on point on the outside wall
10654-Nonparticipating Properties of the structure
10655-Boundary Lines of None
10656-Participating Property
10657-Public Road Rights-of-Way 50 feet from the nearest
10658-edge
10659-Boundary Lines of 50 feet to the nearest
10660-Nonparticipating Property point on the property
10661-line of the nonparticipating
10662-property
10663-(4) a commercial solar energy facility to be sited so
10664-that the facility's perimeter is enclosed by fencing
10665-having a height of at least 6 feet and no more than 25
10666-feet; and
10667-(5) a commercial solar energy facility to be sited so
10668-that no component of a solar panel has a height of more
10669-than 20 feet above ground when the solar energy facility's
10670-arrays are at full tilt.
10671-The requirements set forth in this subsection (e) may be
10672-waived subject to the written consent of the owner of each
10673-affected nonparticipating property.
10674-
10675-
10676-(f) A county may not set a sound limitation for wind towers
10677-in commercial wind energy facilities or any components in
10678-commercial solar energy facilities facility that is more
10679-restrictive than the sound limitations established by the
10680-Illinois Pollution Control Board under 35 Ill. Adm. Code Parts
10681-900, 901, and 910.
10682-(g) A county may not place any restriction on the
10683-installation or use of a commercial wind energy facility or a
10684-commercial solar energy facility unless it adopts an ordinance
10685-that complies with this Section. A county may not establish
10686-siting standards for supporting facilities that preclude
10687-development of commercial wind energy facilities or commercial
10688-solar energy facilities.
10689-A request for siting approval or a special use permit for a
10690-commercial wind energy facility or a commercial solar energy
10691-facility, or modification of an approved siting or special use
10692-permit, shall be approved if the request is in compliance with
10693-the standards and conditions imposed in this Act, the zoning
10694-ordinance adopted consistent with this Code, and the
10695-conditions imposed under State and federal statutes and
10696-regulations.
10697-(h) A county may not adopt zoning regulations that
10698-disallow, permanently or temporarily, commercial wind energy
10699-facilities or commercial solar energy facilities from being
10700-developed or operated in any district zoned to allow
10701-agricultural or industrial uses.
10702-
10703-
10704-(i) A county may not require permit application fees for a
10705-commercial wind energy facility or commercial solar energy
10706-facility that are unreasonable. All application fees imposed
10707-by the county shall be consistent with fees for projects in the
10708-county with similar capital value and cost.
10709-(j) Except as otherwise provided in this Section, a county
10710-shall not require standards for construction, decommissioning,
10711-or deconstruction of a commercial wind energy facility or
10712-commercial solar energy facility or related financial
10713-assurances that are more restrictive than those included in
10714-the Department of Agriculture's standard wind farm
10715-agricultural impact mitigation agreement, template 81818, or
10716-standard solar agricultural impact mitigation agreement,
10717-version 8.19.19, as applicable and in effect on December 31,
10718-2022. The amount of any decommissioning payment shall be in
10719-accordance with the financial assurance limited to the cost
10720-identified in the decommissioning or deconstruction plan, as
10721-required by those agricultural impact mitigation agreements,
10722-minus the salvage value of the project.
10723-(j-5) A commercial wind energy facility or a commercial
10724-solar energy facility shall file a farmland drainage plan with
10725-the county and impacted drainage districts outlining how
10726-surface and subsurface drainage of farmland will be restored
10727-during and following construction or deconstruction of the
10728-facility. The plan is to be created independently by the
10729-facility developer and shall include the location of any
10730-
10731-
10732-potentially impacted drainage district facilities to the
10733-extent this information is publicly available from the county
10734-or the drainage district, plans to repair any subsurface
10735-drainage affected during construction or deconstruction using
10736-procedures outlined in the agricultural impact mitigation
10737-agreement entered into by the commercial wind energy facility
10738-owner or commercial solar energy facility owner, and
10739-procedures for the repair and restoration of surface drainage
10740-affected during construction or deconstruction. All surface
10741-and subsurface damage shall be repaired as soon as reasonably
10742-practicable.
10743-(k) A county may not condition approval of a commercial
10744-wind energy facility or commercial solar energy facility on a
10745-property value guarantee and may not require a facility owner
10746-to pay into a neighboring property devaluation escrow account.
10747-(l) A county may require certain vegetative screening
10748-surrounding a commercial wind energy facility or commercial
10749-solar energy facility but may not require earthen berms or
10750-similar structures.
10751-(m) A county may set blade tip height limitations for wind
10752-towers in commercial wind energy facilities but may not set a
10753-blade tip height limitation that is more restrictive than the
10754-height allowed under a Determination of No Hazard to Air
10755-Navigation by the Federal Aviation Administration under 14 CFR
10756-Part 77.
10757-(n) A county may require that a commercial wind energy
10758-
10759-
10760-facility owner or commercial solar energy facility owner
10761-provide:
10762-(1) the results and recommendations from consultation
10763-with the Illinois Department of Natural Resources that are
10764-obtained through the Ecological Compliance Assessment Tool
10765-(EcoCAT) or a comparable successor tool; and
10766-(2) the results of the United States Fish and Wildlife
10767-Service's Information for Planning and Consulting
10768-environmental review or a comparable successor tool that
10769-is consistent with (i) the "U.S. Fish and Wildlife
10770-Service's Land-Based Wind Energy Guidelines" and (ii) any
10771-applicable United States Fish and Wildlife Service solar
10772-wildlife guidelines that have been subject to public
10773-review.
10774-(o) A county may require a commercial wind energy facility
10775-or commercial solar energy facility to adhere to the
10776-recommendations provided by the Illinois Department of Natural
10777-Resources in an EcoCAT natural resource review report under 17
10778-Ill. Adm. Admin. Code Part 1075.
10779-(p) A county may require a facility owner to:
10780-(1) demonstrate avoidance of protected lands as
10781-identified by the Illinois Department of Natural Resources
10782-and the Illinois Nature Preserve Commission; or
10783-(2) consider the recommendations of the Illinois
10784-Department of Natural Resources for setbacks from
10785-protected lands, including areas identified by the
10786-
10787-
10788-Illinois Nature Preserve Commission.
10789-(q) A county may require that a facility owner provide
10790-evidence of consultation with the Illinois State Historic
10791-Preservation Office to assess potential impacts on
10792-State-registered historic sites under the Illinois State
10793-Agency Historic Resources Preservation Act.
10794-(r) To maximize community benefits, including, but not
10795-limited to, reduced stormwater runoff, flooding, and erosion
10796-at the ground mounted solar energy system, improved soil
10797-health, and increased foraging habitat for game birds,
10798-songbirds, and pollinators, a county may (1) require a
10799-commercial solar energy facility owner to plant, establish,
10800-and maintain for the life of the facility vegetative ground
10801-cover, consistent with the goals of the Pollinator-Friendly
10802-Solar Site Act and (2) require the submittal of a vegetation
10803-management plan that is in compliance with the agricultural
10804-impact mitigation agreement in the application to construct
10805-and operate a commercial solar energy facility in the county
10806-if the vegetative ground cover and vegetation management plan
10807-comply with the requirements of the underlying agreement with
10808-the landowner or landowners where the facility will be
10809-constructed.
10810-No later than 90 days after January 27, 2023 (the
10811-effective date of Public Act 102-1123) this amendatory Act of
10812-the 102nd General Assembly, the Illinois Department of Natural
10813-Resources shall develop guidelines for vegetation management
10814-
10815-
10816-plans that may be required under this subsection for
10817-commercial solar energy facilities. The guidelines must
10818-include guidance for short-term and long-term property
10819-management practices that provide and maintain native and
10820-non-invasive naturalized perennial vegetation to protect the
10821-health and well-being of pollinators.
10822-(s) If a facility owner enters into a road use agreement
10823-with the Illinois Department of Transportation, a road
10824-district, or other unit of local government relating to a
10825-commercial wind energy facility or a commercial solar energy
10826-facility, the road use agreement shall require the facility
10827-owner to be responsible for (i) the reasonable cost of
10828-improving roads used by the facility owner to construct the
10829-commercial wind energy facility or the commercial solar energy
10830-facility and (ii) the reasonable cost of repairing roads used
10831-by the facility owner during construction of the commercial
10832-wind energy facility or the commercial solar energy facility
10833-so that those roads are in a condition that is safe for the
10834-driving public after the completion of the facility's
10835-construction. Roadways improved in preparation for and during
10836-the construction of the commercial wind energy facility or
10837-commercial solar energy facility shall be repaired and
10838-restored to the improved condition at the reasonable cost of
10839-the developer if the roadways have degraded or were damaged as
10840-a result of construction-related activities.
10841-The road use agreement shall not require the facility
10842-
10843-
10844-owner to pay costs, fees, or charges for road work that is not
10845-specifically and uniquely attributable to the construction of
10846-the commercial wind energy facility or the commercial solar
10847-energy facility. Road-related fees, permit fees, or other
10848-charges imposed by the Illinois Department of Transportation,
10849-a road district, or other unit of local government under a road
10850-use agreement with the facility owner shall be reasonably
10851-related to the cost of administration of the road use
10852-agreement.
10853-(s-5) The facility owner shall also compensate landowners
10854-for crop losses or other agricultural damages resulting from
10855-damage to the drainage system caused by the construction of
10856-the commercial wind energy facility or the commercial solar
10857-energy facility. The commercial wind energy facility owner or
10858-commercial solar energy facility owner shall repair or pay for
10859-the repair of all damage to the subsurface drainage system
10860-caused by the construction of the commercial wind energy
10861-facility or the commercial solar energy facility in accordance
10862-with the agriculture impact mitigation agreement requirements
10863-for repair of drainage. The commercial wind energy facility
10864-owner or commercial solar energy facility owner shall repair
10865-or pay for the repair and restoration of surface drainage
10866-caused by the construction or deconstruction of the commercial
10867-wind energy facility or the commercial solar energy facility
10868-as soon as reasonably practicable.
10869-(t) Notwithstanding any other provision of law, a facility
10870-
10871-
10872-owner with siting approval from a county to construct a
10873-commercial wind energy facility or a commercial solar energy
10874-facility is authorized to cross or impact a drainage system,
10875-including, but not limited to, drainage tiles, open drainage
10876-ditches districts, culverts, and water gathering vaults, owned
10877-or under the control of a drainage district under the Illinois
10878-Drainage Code without obtaining prior agreement or approval
10879-from the drainage district in accordance with the farmland
10880-drainage plan required by subsection (j-5) , except that the
10881-facility owner shall repair or pay for the repair of all damage
10882-to the drainage system caused by the construction of the
10883-commercial wind energy facility or the commercial solar energy
10884-facility within a reasonable time after construction of the
10885-commercial wind energy facility or the commercial solar energy
10886-facility is complete.
10887-(u) The amendments to this Section adopted in Public Act
10888-102-1123 do not apply to: (1) an application for siting
10889-approval or for a special use permit for a commercial wind
10890-energy facility or commercial solar energy facility if the
10891-application was submitted to a unit of local government before
10892-January 27, 2023 (the effective date of Public Act 102-1123)
10893-this amendatory Act of the 102nd General Assembly; (2) a
10894-commercial wind energy facility or a commercial solar energy
10895-facility if the facility owner has submitted an agricultural
10896-impact mitigation agreement to the Department of Agriculture
10897-before January 27, 2023 (the effective date of Public Act
10898-
10899-
10900-102-1123) this amendatory Act of the 102nd General Assembly;
10901-or (3) a commercial wind energy or commercial solar energy
10902-development on property that is located within an enterprise
10903-zone certified under the Illinois Enterprise Zone Act, that
10904-was classified as industrial by the appropriate zoning
10905-authority on or before January 27, 2023, and that is located
10906-within 4 miles of the intersection of Interstate 88 and
10907-Interstate 39.
10908-(Source: P.A. 102-1123, eff. 1-27-23; 103-81, eff. 6-9-23;
10909-revised 9-25-23.)
10910-Section 25. The Public Utilities Act is amended by adding
10911-Section 4-610 as follows:
10912-(220 ILCS 5/4-610 new)
10913-Sec. 4-610. Thermal energy networks.
10914-(a) The General Assembly finds that:
10915-(1) the State has an interest in decarbonizing
10916-buildings in a manner that is affordable and accessible,
10917-preserves and creates living-wage jobs, and retains the
10918-knowledge and experience of the existing utility
10919-workforce;
10920-(2) thermal energy networks have the potential to
10921-affordably decarbonize buildings at the community-scale
10922-and utility-scale and help achieve the goals of the
10923-Climate and Equitable Jobs Act (Public Act 102-662);
10924-
10925-
10926-(3) the construction industry is highly skilled and
10927-labor intensive, and the installation of modern thermal
10928-energy networks involves particularly complex work,
10929-therefore effective qualification standards for craft
10930-labor personnel employed on these projects are critically
10931-needed to promote successful project delivery; and
10932-(4) it is the intent of the General Assembly to
10933-establish a stakeholder workshop within the Commission to
10934-promote the successful planning and delivery of thermal
10935-energy networks in an equitable manner that reduces
10936-emissions, offers affordable building decarbonization, and
10937-provides opportunities for employment with fair labor
10938-standards and preapprenticeship and apprenticeship
10939-programs.
10940-(b) As used in this Section:
10941-"Thermal energy" means piped noncombustible fluids used
10942-for transferring heat into and out of buildings for the
10943-purpose of reducing any resultant onsite greenhouse gas
10944-emissions of all types of heating and cooling processes,
10945-including, but not limited to, comfort heating and cooling,
10946-domestic hot water, and refrigeration.
10947-"Thermal energy network" means all real estate, fixtures,
10948-and personal property operated, owned, used, or to be used
10949-for, in connection with, or to facilitate a utility-scale
10950-distribution infrastructure project that supplies thermal
10951-energy.
10952-
10953-
10954-(c) The Commission, in order to develop a regulatory
10955-structure for utility thermal energy networks that scale with
10956-affordable and accessible building electrification, protect
10957-utility customers, and promote the successful planning and
10958-delivery of thermal energy networks, shall convene a workshop
10959-process for the purpose of establishing an open, inclusive,
10960-and cooperative forum regarding such thermal energy networks.
10961-The workshops may be facilitated by an independent,
10962-third-party facilitator selected by the Commission. The series
10963-of workshops shall include no fewer than 3 workshops. After
10964-the conclusion of the workshops, the Commission shall open a
10965-comment period that allows interested and diverse stakeholders
10966-to submit comments and recommendations regarding the thermal
10967-energy networks. Based on the workshop process and stakeholder
10968-comments and recommendations offered verbally or in writing
10969-during the workshops and in writing during the comment period
10970-following the workshops, the Commission or, if applicable, the
10971-independent third-party facilitator, shall prepare a report,
10972-to be submitted to the Governor and the General Assembly no
10973-later than March 1, 2024, describing the stakeholders,
10974-discussions, proposals, and areas of consensus and
10975-disagreement from the workshop process, and making
10976-recommendations regarding thermal energy networks.
10977-(d) The workshop shall be designed to achieve the
10978-following objectives:
10979-(1) determine appropriate ownership, market, and rate
10980-
10981-
10982-structures for thermal energy networks and whether the
10983-provision of thermal energy services by thermal network
10984-energy providers is in the public interest;
10985-(2) consider project designs that could maximize the
10986-value of existing State energy efficiency and
10987-weatherization programs and maximize federal funding
10988-opportunities to the extent practicable;
10989-(3) determine whether thermal energy network projects
10990-further climate justice and emissions reductions and
10991-benefits to utility customers and society at large,
10992-including but not limited to public health benefits in
10993-areas with disproportionate environmental burdens, job
10994-retention and creation, reliability, and increased
10995-affordability of renewable thermal energy options;
10996-(4) consider approaches to thermal energy network
10997-projects that advance financial and technical approaches
10998-to equitable and affordable building electrification,
10999-including access to thermal energy network benefits by low
11000-and moderate income households; and
11001-(5) consider approaches to promote the training and
11002-transition of utility workers to work on thermal energy
11003-networks.
11004-Section 95. No acceleration or delay. Where this Act makes
11005-changes in a statute that is represented in this Act by text
11006-that is not yet or no longer in effect (for example, a Section
11007-
11008-
11009-represented by multiple versions), the use of that text does
11010-not accelerate or delay the taking effect of (i) the changes
11011-made by this Act or (ii) provisions derived from any other
11012-Public Act.
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34+1 to known or suspected cases of sexually transmissible
35+2 disease or any information the disclosure of which is
36+3 restricted under the Illinois Sexually Transmissible
37+4 Disease Control Act.
38+5 (e) Information the disclosure of which is exempted
39+6 under Section 30 of the Radon Industry Licensing Act.
40+7 (f) Firm performance evaluations under Section 55 of
41+8 the Architectural, Engineering, and Land Surveying
42+9 Qualifications Based Selection Act.
43+10 (g) Information the disclosure of which is restricted
44+11 and exempted under Section 50 of the Illinois Prepaid
45+12 Tuition Act.
46+13 (h) Information the disclosure of which is exempted
47+14 under the State Officials and Employees Ethics Act, and
48+15 records of any lawfully created State or local inspector
49+16 general's office that would be exempt if created or
50+17 obtained by an Executive Inspector General's office under
51+18 that Act.
52+19 (i) Information contained in a local emergency energy
53+20 plan submitted to a municipality in accordance with a
54+21 local emergency energy plan ordinance that is adopted
55+22 under Section 11-21.5-5 of the Illinois Municipal Code.
56+23 (j) Information and data concerning the distribution
57+24 of surcharge moneys collected and remitted by carriers
58+25 under the Emergency Telephone System Act.
59+26 (k) Law enforcement officer identification information
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70+1 or driver identification information compiled by a law
71+2 enforcement agency or the Department of Transportation
72+3 under Section 11-212 of the Illinois Vehicle Code.
73+4 (l) Records and information provided to a residential
74+5 health care facility resident sexual assault and death
75+6 review team or the Executive Council under the Abuse
76+7 Prevention Review Team Act.
77+8 (m) Information provided to the predatory lending
78+9 database created pursuant to Article 3 of the Residential
79+10 Real Property Disclosure Act, except to the extent
80+11 authorized under that Article.
81+12 (n) Defense budgets and petitions for certification of
82+13 compensation and expenses for court appointed trial
83+14 counsel as provided under Sections 10 and 15 of the
84+15 Capital Crimes Litigation Act. This subsection (n) shall
85+16 apply until the conclusion of the trial of the case, even
86+17 if the prosecution chooses not to pursue the death penalty
87+18 prior to trial or sentencing.
88+19 (o) Information that is prohibited from being
89+20 disclosed under Section 4 of the Illinois Health and
90+21 Hazardous Substances Registry Act.
91+22 (p) Security portions of system safety program plans,
92+23 investigation reports, surveys, schedules, lists, data, or
93+24 information compiled, collected, or prepared by or for the
94+25 Department of Transportation under Sections 2705-300 and
95+26 2705-616 of the Department of Transportation Law of the
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106+1 Civil Administrative Code of Illinois, the Regional
107+2 Transportation Authority under Section 2.11 of the
108+3 Regional Transportation Authority Act, or the St. Clair
109+4 County Transit District under the Bi-State Transit Safety
110+5 Act.
111+6 (q) Information prohibited from being disclosed by the
112+7 Personnel Record Review Act.
113+8 (r) Information prohibited from being disclosed by the
114+9 Illinois School Student Records Act.
115+10 (s) Information the disclosure of which is restricted
116+11 under Section 5-108 of the Public Utilities Act.
117+12 (t) All identified or deidentified health information
118+13 in the form of health data or medical records contained
119+14 in, stored in, submitted to, transferred by, or released
120+15 from the Illinois Health Information Exchange, and
121+16 identified or deidentified health information in the form
122+17 of health data and medical records of the Illinois Health
123+18 Information Exchange in the possession of the Illinois
124+19 Health Information Exchange Office due to its
125+20 administration of the Illinois Health Information
126+21 Exchange. The terms "identified" and "deidentified" shall
127+22 be given the same meaning as in the Health Insurance
128+23 Portability and Accountability Act of 1996, Public Law
129+24 104-191, or any subsequent amendments thereto, and any
130+25 regulations promulgated thereunder.
131+26 (u) Records and information provided to an independent
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142+1 team of experts under the Developmental Disability and
143+2 Mental Health Safety Act (also known as Brian's Law).
144+3 (v) Names and information of people who have applied
145+4 for or received Firearm Owner's Identification Cards under
146+5 the Firearm Owners Identification Card Act or applied for
147+6 or received a concealed carry license under the Firearm
148+7 Concealed Carry Act, unless otherwise authorized by the
149+8 Firearm Concealed Carry Act; and databases under the
150+9 Firearm Concealed Carry Act, records of the Concealed
151+10 Carry Licensing Review Board under the Firearm Concealed
152+11 Carry Act, and law enforcement agency objections under the
153+12 Firearm Concealed Carry Act.
154+13 (v-5) Records of the Firearm Owner's Identification
155+14 Card Review Board that are exempted from disclosure under
156+15 Section 10 of the Firearm Owners Identification Card Act.
157+16 (w) Personally identifiable information which is
158+17 exempted from disclosure under subsection (g) of Section
159+18 19.1 of the Toll Highway Act.
160+19 (x) Information which is exempted from disclosure
161+20 under Section 5-1014.3 of the Counties Code or Section
162+21 8-11-21 of the Illinois Municipal Code.
163+22 (y) Confidential information under the Adult
164+23 Protective Services Act and its predecessor enabling
165+24 statute, the Elder Abuse and Neglect Act, including
166+25 information about the identity and administrative finding
167+26 against any caregiver of a verified and substantiated
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178+1 decision of abuse, neglect, or financial exploitation of
179+2 an eligible adult maintained in the Registry established
180+3 under Section 7.5 of the Adult Protective Services Act.
181+4 (z) Records and information provided to a fatality
182+5 review team or the Illinois Fatality Review Team Advisory
183+6 Council under Section 15 of the Adult Protective Services
184+7 Act.
185+8 (aa) Information which is exempted from disclosure
186+9 under Section 2.37 of the Wildlife Code.
187+10 (bb) Information which is or was prohibited from
188+11 disclosure by the Juvenile Court Act of 1987.
189+12 (cc) Recordings made under the Law Enforcement
190+13 Officer-Worn Body Camera Act, except to the extent
191+14 authorized under that Act.
192+15 (dd) Information that is prohibited from being
193+16 disclosed under Section 45 of the Condominium and Common
194+17 Interest Community Ombudsperson Act.
195+18 (ee) Information that is exempted from disclosure
196+19 under Section 30.1 of the Pharmacy Practice Act.
197+20 (ff) Information that is exempted from disclosure
198+21 under the Revised Uniform Unclaimed Property Act.
199+22 (gg) Information that is prohibited from being
200+23 disclosed under Section 7-603.5 of the Illinois Vehicle
201+24 Code.
202+25 (hh) Records that are exempt from disclosure under
203+26 Section 1A-16.7 of the Election Code.
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214+1 (ii) Information which is exempted from disclosure
215+2 under Section 2505-800 of the Department of Revenue Law of
216+3 the Civil Administrative Code of Illinois.
217+4 (jj) Information and reports that are required to be
218+5 submitted to the Department of Labor by registering day
219+6 and temporary labor service agencies but are exempt from
220+7 disclosure under subsection (a-1) of Section 45 of the Day
221+8 and Temporary Labor Services Act.
222+9 (kk) Information prohibited from disclosure under the
223+10 Seizure and Forfeiture Reporting Act.
224+11 (ll) Information the disclosure of which is restricted
225+12 and exempted under Section 5-30.8 of the Illinois Public
226+13 Aid Code.
227+14 (mm) Records that are exempt from disclosure under
228+15 Section 4.2 of the Crime Victims Compensation Act.
229+16 (nn) Information that is exempt from disclosure under
230+17 Section 70 of the Higher Education Student Assistance Act.
231+18 (oo) Communications, notes, records, and reports
232+19 arising out of a peer support counseling session
233+20 prohibited from disclosure under the First Responders
234+21 Suicide Prevention Act.
235+22 (pp) Names and all identifying information relating to
236+23 an employee of an emergency services provider or law
237+24 enforcement agency under the First Responders Suicide
238+25 Prevention Act.
239+26 (qq) Information and records held by the Department of
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250+1 Public Health and its authorized representatives collected
251+2 under the Reproductive Health Act.
252+3 (rr) Information that is exempt from disclosure under
253+4 the Cannabis Regulation and Tax Act.
254+5 (ss) Data reported by an employer to the Department of
255+6 Human Rights pursuant to Section 2-108 of the Illinois
256+7 Human Rights Act.
257+8 (tt) Recordings made under the Children's Advocacy
258+9 Center Act, except to the extent authorized under that
259+10 Act.
260+11 (uu) Information that is exempt from disclosure under
261+12 Section 50 of the Sexual Assault Evidence Submission Act.
262+13 (vv) Information that is exempt from disclosure under
263+14 subsections (f) and (j) of Section 5-36 of the Illinois
264+15 Public Aid Code.
265+16 (ww) Information that is exempt from disclosure under
266+17 Section 16.8 of the State Treasurer Act.
267+18 (xx) Information that is exempt from disclosure or
268+19 information that shall not be made public under the
269+20 Illinois Insurance Code.
270+21 (yy) Information prohibited from being disclosed under
271+22 the Illinois Educational Labor Relations Act.
272+23 (zz) Information prohibited from being disclosed under
273+24 the Illinois Public Labor Relations Act.
274+25 (aaa) Information prohibited from being disclosed
275+26 under Section 1-167 of the Illinois Pension Code.
276+
277+
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285+ SB1699 Enrolled - 9 - LRB103 27684 AMQ 54061 b
286+1 (bbb) Information that is prohibited from disclosure
287+2 by the Illinois Police Training Act and the Illinois State
288+3 Police Act.
289+4 (ccc) Records exempt from disclosure under Section
290+5 2605-304 of the Illinois State Police Law of the Civil
291+6 Administrative Code of Illinois.
292+7 (ddd) Information prohibited from being disclosed
293+8 under Section 35 of the Address Confidentiality for
294+9 Victims of Domestic Violence, Sexual Assault, Human
295+10 Trafficking, or Stalking Act.
296+11 (eee) Information prohibited from being disclosed
297+12 under subsection (b) of Section 75 of the Domestic
298+13 Violence Fatality Review Act.
299+14 (fff) Images from cameras under the Expressway Camera
300+15 Act. This subsection (fff) is inoperative on and after
301+16 July 1, 2023.
302+17 (ggg) Information prohibited from disclosure under
303+18 paragraph (3) of subsection (a) of Section 14 of the Nurse
304+19 Agency Licensing Act.
305+20 (hhh) Information submitted to the Illinois Department
306+21 of State Police in an affidavit or application for an
307+22 assault weapon endorsement, assault weapon attachment
308+23 endorsement, .50 caliber rifle endorsement, or .50 caliber
309+24 cartridge endorsement under the Firearm Owners
310+25 Identification Card Act.
311+26 (iii) Information prohibited from being disclosed
312+
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318+
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321+ SB1699 Enrolled - 10 - LRB103 27684 AMQ 54061 b
322+1 under subsection (e) of Section 1-129 of the Illinois
323+2 Power Agency Act.
324+3 (Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
325+4 101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
326+5 1-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
327+6 eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
328+7 101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
329+8 1-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
330+9 eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
331+10 102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
332+11 7-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
333+12 2-13-23.)
334+13 Section 10. The Illinois Power Agency Act is amended by
335+14 changing Section 1-75 and adding Section 1-129 as follows:
336+15 (20 ILCS 3855/1-75)
337+16 (Text of Section before amendment by P.A. 103-380)
338+17 Sec. 1-75. Planning and Procurement Bureau. The Planning
339+18 and Procurement Bureau has the following duties and
340+19 responsibilities:
341+20 (a) The Planning and Procurement Bureau shall each year,
342+21 beginning in 2008, develop procurement plans and conduct
343+22 competitive procurement processes in accordance with the
344+23 requirements of Section 16-111.5 of the Public Utilities Act
345+24 for the eligible retail customers of electric utilities that
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356+1 on December 31, 2005 provided electric service to at least
357+2 100,000 customers in Illinois. Beginning with the delivery
358+3 year commencing on June 1, 2017, the Planning and Procurement
359+4 Bureau shall develop plans and processes for the procurement
360+5 of zero emission credits from zero emission facilities in
361+6 accordance with the requirements of subsection (d-5) of this
362+7 Section. Beginning on the effective date of this amendatory
363+8 Act of the 102nd General Assembly, the Planning and
364+9 Procurement Bureau shall develop plans and processes for the
365+10 procurement of carbon mitigation credits from carbon-free
366+11 energy resources in accordance with the requirements of
367+12 subsection (d-10) of this Section. The Planning and
368+13 Procurement Bureau shall also develop procurement plans and
369+14 conduct competitive procurement processes in accordance with
370+15 the requirements of Section 16-111.5 of the Public Utilities
371+16 Act for the eligible retail customers of small
372+17 multi-jurisdictional electric utilities that (i) on December
373+18 31, 2005 served less than 100,000 customers in Illinois and
374+19 (ii) request a procurement plan for their Illinois
375+20 jurisdictional load. This Section shall not apply to a small
376+21 multi-jurisdictional utility until such time as a small
377+22 multi-jurisdictional utility requests the Agency to prepare a
378+23 procurement plan for their Illinois jurisdictional load. For
379+24 the purposes of this Section, the term "eligible retail
380+25 customers" has the same definition as found in Section
381+26 16-111.5(a) of the Public Utilities Act.
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391+ SB1699 Enrolled - 12 - LRB103 27684 AMQ 54061 b
392+1 Beginning with the plan or plans to be implemented in the
393+2 2017 delivery year, the Agency shall no longer include the
394+3 procurement of renewable energy resources in the annual
395+4 procurement plans required by this subsection (a), except as
396+5 provided in subsection (q) of Section 16-111.5 of the Public
397+6 Utilities Act, and shall instead develop a long-term renewable
398+7 resources procurement plan in accordance with subsection (c)
399+8 of this Section and Section 16-111.5 of the Public Utilities
400+9 Act.
401+10 In accordance with subsection (c-5) of this Section, the
402+11 Planning and Procurement Bureau shall oversee the procurement
403+12 by electric utilities that served more than 300,000 retail
404+13 customers in this State as of January 1, 2019 of renewable
405+14 energy credits from new utility-scale solar projects to be
406+15 installed, along with energy storage facilities, at or
407+16 adjacent to the sites of electric generating facilities that,
408+17 as of January 1, 2016, burned coal as their primary fuel
409+18 source.
410+19 (1) The Agency shall each year, beginning in 2008, as
411+20 needed, issue a request for qualifications for experts or
412+21 expert consulting firms to develop the procurement plans
413+22 in accordance with Section 16-111.5 of the Public
414+23 Utilities Act. In order to qualify an expert or expert
415+24 consulting firm must have:
416+25 (A) direct previous experience assembling
417+26 large-scale power supply plans or portfolios for
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427+ SB1699 Enrolled - 13 - LRB103 27684 AMQ 54061 b
428+1 end-use customers;
429+2 (B) an advanced degree in economics, mathematics,
430+3 engineering, risk management, or a related area of
431+4 study;
432+5 (C) 10 years of experience in the electricity
433+6 sector, including managing supply risk;
434+7 (D) expertise in wholesale electricity market
435+8 rules, including those established by the Federal
436+9 Energy Regulatory Commission and regional transmission
437+10 organizations;
438+11 (E) expertise in credit protocols and familiarity
439+12 with contract protocols;
440+13 (F) adequate resources to perform and fulfill the
441+14 required functions and responsibilities; and
442+15 (G) the absence of a conflict of interest and
443+16 inappropriate bias for or against potential bidders or
444+17 the affected electric utilities.
445+18 (2) The Agency shall each year, as needed, issue a
446+19 request for qualifications for a procurement administrator
447+20 to conduct the competitive procurement processes in
448+21 accordance with Section 16-111.5 of the Public Utilities
449+22 Act. In order to qualify an expert or expert consulting
450+23 firm must have:
451+24 (A) direct previous experience administering a
452+25 large-scale competitive procurement process;
453+26 (B) an advanced degree in economics, mathematics,
454+
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464+1 engineering, or a related area of study;
465+2 (C) 10 years of experience in the electricity
466+3 sector, including risk management experience;
467+4 (D) expertise in wholesale electricity market
468+5 rules, including those established by the Federal
469+6 Energy Regulatory Commission and regional transmission
470+7 organizations;
471+8 (E) expertise in credit and contract protocols;
472+9 (F) adequate resources to perform and fulfill the
473+10 required functions and responsibilities; and
474+11 (G) the absence of a conflict of interest and
475+12 inappropriate bias for or against potential bidders or
476+13 the affected electric utilities.
477+14 (3) The Agency shall provide affected utilities and
478+15 other interested parties with the lists of qualified
479+16 experts or expert consulting firms identified through the
480+17 request for qualifications processes that are under
481+18 consideration to develop the procurement plans and to
482+19 serve as the procurement administrator. The Agency shall
483+20 also provide each qualified expert's or expert consulting
484+21 firm's response to the request for qualifications. All
485+22 information provided under this subparagraph shall also be
486+23 provided to the Commission. The Agency may provide by rule
487+24 for fees associated with supplying the information to
488+25 utilities and other interested parties. These parties
489+26 shall, within 5 business days, notify the Agency in
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500+1 writing if they object to any experts or expert consulting
501+2 firms on the lists. Objections shall be based on:
502+3 (A) failure to satisfy qualification criteria;
503+4 (B) identification of a conflict of interest; or
504+5 (C) evidence of inappropriate bias for or against
505+6 potential bidders or the affected utilities.
506+7 The Agency shall remove experts or expert consulting
507+8 firms from the lists within 10 days if there is a
508+9 reasonable basis for an objection and provide the updated
509+10 lists to the affected utilities and other interested
510+11 parties. If the Agency fails to remove an expert or expert
511+12 consulting firm from a list, an objecting party may seek
512+13 review by the Commission within 5 days thereafter by
513+14 filing a petition, and the Commission shall render a
514+15 ruling on the petition within 10 days. There is no right of
515+16 appeal of the Commission's ruling.
516+17 (4) The Agency shall issue requests for proposals to
517+18 the qualified experts or expert consulting firms to
518+19 develop a procurement plan for the affected utilities and
519+20 to serve as procurement administrator.
520+21 (5) The Agency shall select an expert or expert
521+22 consulting firm to develop procurement plans based on the
522+23 proposals submitted and shall award contracts of up to 5
523+24 years to those selected.
524+25 (6) The Agency shall select an expert or expert
525+26 consulting firm, with approval of the Commission, to serve
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536+1 as procurement administrator based on the proposals
537+2 submitted. If the Commission rejects, within 5 days, the
538+3 Agency's selection, the Agency shall submit another
539+4 recommendation within 3 days based on the proposals
540+5 submitted. The Agency shall award a 5-year contract to the
541+6 expert or expert consulting firm so selected with
542+7 Commission approval.
543+8 (b) The experts or expert consulting firms retained by the
544+9 Agency shall, as appropriate, prepare procurement plans, and
545+10 conduct a competitive procurement process as prescribed in
546+11 Section 16-111.5 of the Public Utilities Act, to ensure
547+12 adequate, reliable, affordable, efficient, and environmentally
548+13 sustainable electric service at the lowest total cost over
549+14 time, taking into account any benefits of price stability, for
550+15 eligible retail customers of electric utilities that on
551+16 December 31, 2005 provided electric service to at least
552+17 100,000 customers in the State of Illinois, and for eligible
553+18 Illinois retail customers of small multi-jurisdictional
554+19 electric utilities that (i) on December 31, 2005 served less
555+20 than 100,000 customers in Illinois and (ii) request a
556+21 procurement plan for their Illinois jurisdictional load.
557+22 (c) Renewable portfolio standard.
558+23 (1)(A) The Agency shall develop a long-term renewable
559+24 resources procurement plan that shall include procurement
560+25 programs and competitive procurement events necessary to
561+26 meet the goals set forth in this subsection (c). The
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572+1 initial long-term renewable resources procurement plan
573+2 shall be released for comment no later than 160 days after
574+3 June 1, 2017 (the effective date of Public Act 99-906).
575+4 The Agency shall review, and may revise on an expedited
576+5 basis, the long-term renewable resources procurement plan
577+6 at least every 2 years, which shall be conducted in
578+7 conjunction with the procurement plan under Section
579+8 16-111.5 of the Public Utilities Act to the extent
580+9 practicable to minimize administrative expense. No later
581+10 than 120 days after the effective date of this amendatory
582+11 Act of the 102nd General Assembly, the Agency shall
583+12 release for comment a revision to the long-term renewable
584+13 resources procurement plan, updating elements of the most
585+14 recently approved plan as needed to comply with this
586+15 amendatory Act of the 102nd General Assembly, and any
587+16 long-term renewable resources procurement plan update
588+17 published by the Agency but not yet approved by the
589+18 Illinois Commerce Commission shall be withdrawn. The
590+19 long-term renewable resources procurement plans shall be
591+20 subject to review and approval by the Commission under
592+21 Section 16-111.5 of the Public Utilities Act.
593+22 (B) Subject to subparagraph (F) of this paragraph (1),
594+23 the long-term renewable resources procurement plan shall
595+24 attempt to meet the goals for procurement of renewable
596+25 energy credits at levels of at least the following overall
597+26 percentages: 13% by the 2017 delivery year; increasing by
598+
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608+1 at least 1.5% each delivery year thereafter to at least
609+2 25% by the 2025 delivery year; increasing by at least 3%
610+3 each delivery year thereafter to at least 40% by the 2030
611+4 delivery year, and continuing at no less than 40% for each
612+5 delivery year thereafter. The Agency shall attempt to
613+6 procure 50% by delivery year 2040. The Agency shall
614+7 determine the annual increase between delivery year 2030
615+8 and delivery year 2040, if any, taking into account energy
616+9 demand, other energy resources, and other public policy
617+10 goals. In the event of a conflict between these goals and
618+11 the new wind and new photovoltaic procurement requirements
619+12 described in items (i) through (iii) of subparagraph (C)
620+13 of this paragraph (1), the long-term plan shall prioritize
621+14 compliance with the new wind and new photovoltaic
622+15 procurement requirements described in items (i) through
623+16 (iii) of subparagraph (C) of this paragraph (1) over the
624+17 annual percentage targets described in this subparagraph
625+18 (B). The Agency shall not comply with the annual
626+19 percentage targets described in this subparagraph (B) by
627+20 procuring renewable energy credits that are unlikely to
628+21 lead to the development of new renewable resources.
629+22 For the delivery year beginning June 1, 2017, the
630+23 procurement plan shall attempt to include, subject to the
631+24 prioritization outlined in this subparagraph (B),
632+25 cost-effective renewable energy resources equal to at
633+26 least 13% of each utility's load for eligible retail
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644+1 customers and 13% of the applicable portion of each
645+2 utility's load for retail customers who are not eligible
646+3 retail customers, which applicable portion shall equal 50%
647+4 of the utility's load for retail customers who are not
648+5 eligible retail customers on February 28, 2017.
649+6 For the delivery year beginning June 1, 2018, the
650+7 procurement plan shall attempt to include, subject to the
651+8 prioritization outlined in this subparagraph (B),
652+9 cost-effective renewable energy resources equal to at
653+10 least 14.5% of each utility's load for eligible retail
654+11 customers and 14.5% of the applicable portion of each
655+12 utility's load for retail customers who are not eligible
656+13 retail customers, which applicable portion shall equal 75%
657+14 of the utility's load for retail customers who are not
658+15 eligible retail customers on February 28, 2017.
659+16 For the delivery year beginning June 1, 2019, and for
660+17 each year thereafter, the procurement plans shall attempt
661+18 to include, subject to the prioritization outlined in this
662+19 subparagraph (B), cost-effective renewable energy
663+20 resources equal to a minimum percentage of each utility's
664+21 load for all retail customers as follows: 16% by June 1,
665+22 2019; increasing by 1.5% each year thereafter to 25% by
666+23 June 1, 2025; and 25% by June 1, 2026; increasing by at
667+24 least 3% each delivery year thereafter to at least 40% by
668+25 the 2030 delivery year, and continuing at no less than 40%
669+26 for each delivery year thereafter. The Agency shall
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680+1 attempt to procure 50% by delivery year 2040. The Agency
681+2 shall determine the annual increase between delivery year
682+3 2030 and delivery year 2040, if any, taking into account
683+4 energy demand, other energy resources, and other public
684+5 policy goals.
685+6 For each delivery year, the Agency shall first
686+7 recognize each utility's obligations for that delivery
687+8 year under existing contracts. Any renewable energy
688+9 credits under existing contracts, including renewable
689+10 energy credits as part of renewable energy resources,
690+11 shall be used to meet the goals set forth in this
691+12 subsection (c) for the delivery year.
692+13 (C) The long-term renewable resources procurement plan
693+14 described in subparagraph (A) of this paragraph (1) shall
694+15 include the procurement of renewable energy credits from
695+16 new projects in amounts equal to at least the following:
696+17 (i) 10,000,000 renewable energy credits delivered
697+18 annually by the end of the 2021 delivery year, and
698+19 increasing ratably to reach 45,000,000 renewable
699+20 energy credits delivered annually from new wind and
700+21 solar projects by the end of delivery year 2030 such
701+22 that the goals in subparagraph (B) of this paragraph
702+23 (1) are met entirely by procurements of renewable
703+24 energy credits from new wind and photovoltaic
704+25 projects. Of that amount, to the extent possible, the
705+26 Agency shall procure 45% from wind projects and 55%
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716+1 from photovoltaic projects. Of the amount to be
717+2 procured from photovoltaic projects, the Agency shall
718+3 procure: at least 50% from solar photovoltaic projects
719+4 using the program outlined in subparagraph (K) of this
720+5 paragraph (1) from distributed renewable energy
721+6 generation devices or community renewable generation
722+7 projects; at least 47% from utility-scale solar
723+8 projects; at least 3% from brownfield site
724+9 photovoltaic projects that are not community renewable
725+10 generation projects.
726+11 In developing the long-term renewable resources
727+12 procurement plan, the Agency shall consider other
728+13 approaches, in addition to competitive procurements,
729+14 that can be used to procure renewable energy credits
730+15 from brownfield site photovoltaic projects and thereby
731+16 help return blighted or contaminated land to
732+17 productive use while enhancing public health and the
733+18 well-being of Illinois residents, including those in
734+19 environmental justice communities, as defined using
735+20 existing methodologies and findings used by the Agency
736+21 and its Administrator in its Illinois Solar for All
737+22 Program.
738+23 (ii) In any given delivery year, if forecasted
739+24 expenses are less than the maximum budget available
740+25 under subparagraph (E) of this paragraph (1), the
741+26 Agency shall continue to procure new renewable energy
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752+1 credits until that budget is exhausted in the manner
753+2 outlined in item (i) of this subparagraph (C).
754+3 (iii) For purposes of this Section:
755+4 "New wind projects" means wind renewable energy
756+5 facilities that are energized after June 1, 2017 for
757+6 the delivery year commencing June 1, 2017.
758+7 "New photovoltaic projects" means photovoltaic
759+8 renewable energy facilities that are energized after
760+9 June 1, 2017. Photovoltaic projects developed under
761+10 Section 1-56 of this Act shall not apply towards the
762+11 new photovoltaic project requirements in this
763+12 subparagraph (C).
764+13 For purposes of calculating whether the Agency has
765+14 procured enough new wind and solar renewable energy
766+15 credits required by this subparagraph (C), renewable
767+16 energy facilities that have a multi-year renewable
768+17 energy credit delivery contract with the utility
769+18 through at least delivery year 2030 shall be
770+19 considered new, however no renewable energy credits
771+20 from contracts entered into before June 1, 2021 shall
772+21 be used to calculate whether the Agency has procured
773+22 the correct proportion of new wind and new solar
774+23 contracts described in this subparagraph (C) for
775+24 delivery year 2021 and thereafter.
776+25 (D) Renewable energy credits shall be cost effective.
777+26 For purposes of this subsection (c), "cost effective"
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788+1 means that the costs of procuring renewable energy
789+2 resources do not cause the limit stated in subparagraph
790+3 (E) of this paragraph (1) to be exceeded and, for
791+4 renewable energy credits procured through a competitive
792+5 procurement event, do not exceed benchmarks based on
793+6 market prices for like products in the region. For
794+7 purposes of this subsection (c), "like products" means
795+8 contracts for renewable energy credits from the same or
796+9 substantially similar technology, same or substantially
797+10 similar vintage (new or existing), the same or
798+11 substantially similar quantity, and the same or
799+12 substantially similar contract length and structure.
800+13 Benchmarks shall reflect development, financing, or
801+14 related costs resulting from requirements imposed through
802+15 other provisions of State law, including, but not limited
803+16 to, requirements in subparagraphs (P) and (Q) of this
804+17 paragraph (1) and the Renewable Energy Facilities
805+18 Agricultural Impact Mitigation Act. Confidential
806+19 benchmarks shall be developed by the procurement
807+20 administrator, in consultation with the Commission staff,
808+21 Agency staff, and the procurement monitor and shall be
809+22 subject to Commission review and approval. If price
810+23 benchmarks for like products in the region are not
811+24 available, the procurement administrator shall establish
812+25 price benchmarks based on publicly available data on
813+26 regional technology costs and expected current and future
814+
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824+1 regional energy prices. The benchmarks in this Section
825+2 shall not be used to curtail or otherwise reduce
826+3 contractual obligations entered into by or through the
827+4 Agency prior to June 1, 2017 (the effective date of Public
828+5 Act 99-906).
829+6 (E) For purposes of this subsection (c), the required
830+7 procurement of cost-effective renewable energy resources
831+8 for a particular year commencing prior to June 1, 2017
832+9 shall be measured as a percentage of the actual amount of
833+10 electricity (megawatt-hours) supplied by the electric
834+11 utility to eligible retail customers in the delivery year
835+12 ending immediately prior to the procurement, and, for
836+13 delivery years commencing on and after June 1, 2017, the
837+14 required procurement of cost-effective renewable energy
838+15 resources for a particular year shall be measured as a
839+16 percentage of the actual amount of electricity
840+17 (megawatt-hours) delivered by the electric utility in the
841+18 delivery year ending immediately prior to the procurement,
842+19 to all retail customers in its service territory. For
843+20 purposes of this subsection (c), the amount paid per
844+21 kilowatthour means the total amount paid for electric
845+22 service expressed on a per kilowatthour basis. For
846+23 purposes of this subsection (c), the total amount paid for
847+24 electric service includes without limitation amounts paid
848+25 for supply, transmission, capacity, distribution,
849+26 surcharges, and add-on taxes.
850+
851+
852+
853+
854+
855+ SB1699 Enrolled - 24 - LRB103 27684 AMQ 54061 b
856+
857+
858+SB1699 Enrolled- 25 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 25 - LRB103 27684 AMQ 54061 b
859+ SB1699 Enrolled - 25 - LRB103 27684 AMQ 54061 b
860+1 Notwithstanding the requirements of this subsection
861+2 (c), the total of renewable energy resources procured
862+3 under the procurement plan for any single year shall be
863+4 subject to the limitations of this subparagraph (E). Such
864+5 procurement shall be reduced for all retail customers
865+6 based on the amount necessary to limit the annual
866+7 estimated average net increase due to the costs of these
867+8 resources included in the amounts paid by eligible retail
868+9 customers in connection with electric service to no more
869+10 than 4.25% of the amount paid per kilowatthour by those
870+11 customers during the year ending May 31, 2009. To arrive
871+12 at a maximum dollar amount of renewable energy resources
872+13 to be procured for the particular delivery year, the
873+14 resulting per kilowatthour amount shall be applied to the
874+15 actual amount of kilowatthours of electricity delivered,
875+16 or applicable portion of such amount as specified in
876+17 paragraph (1) of this subsection (c), as applicable, by
877+18 the electric utility in the delivery year immediately
878+19 prior to the procurement to all retail customers in its
879+20 service territory. The calculations required by this
880+21 subparagraph (E) shall be made only once for each delivery
881+22 year at the time that the renewable energy resources are
882+23 procured. Once the determination as to the amount of
883+24 renewable energy resources to procure is made based on the
884+25 calculations set forth in this subparagraph (E) and the
885+26 contracts procuring those amounts are executed, no
886+
887+
888+
889+
890+
891+ SB1699 Enrolled - 25 - LRB103 27684 AMQ 54061 b
892+
893+
894+SB1699 Enrolled- 26 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 26 - LRB103 27684 AMQ 54061 b
895+ SB1699 Enrolled - 26 - LRB103 27684 AMQ 54061 b
896+1 subsequent rate impact determinations shall be made and no
897+2 adjustments to those contract amounts shall be allowed.
898+3 All costs incurred under such contracts shall be fully
899+4 recoverable by the electric utility as provided in this
900+5 Section.
901+6 (F) If the limitation on the amount of renewable
902+7 energy resources procured in subparagraph (E) of this
903+8 paragraph (1) prevents the Agency from meeting all of the
904+9 goals in this subsection (c), the Agency's long-term plan
905+10 shall prioritize compliance with the requirements of this
906+11 subsection (c) regarding renewable energy credits in the
907+12 following order:
908+13 (i) renewable energy credits under existing
909+14 contractual obligations as of June 1, 2021;
910+15 (i-5) funding for the Illinois Solar for All
911+16 Program, as described in subparagraph (O) of this
912+17 paragraph (1);
913+18 (ii) renewable energy credits necessary to comply
914+19 with the new wind and new photovoltaic procurement
915+20 requirements described in items (i) through (iii) of
916+21 subparagraph (C) of this paragraph (1); and
917+22 (iii) renewable energy credits necessary to meet
918+23 the remaining requirements of this subsection (c).
919+24 (G) The following provisions shall apply to the
920+25 Agency's procurement of renewable energy credits under
921+26 this subsection (c):
922+
923+
924+
925+
926+
927+ SB1699 Enrolled - 26 - LRB103 27684 AMQ 54061 b
928+
929+
930+SB1699 Enrolled- 27 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 27 - LRB103 27684 AMQ 54061 b
931+ SB1699 Enrolled - 27 - LRB103 27684 AMQ 54061 b
932+1 (i) Notwithstanding whether a long-term renewable
933+2 resources procurement plan has been approved, the
934+3 Agency shall conduct an initial forward procurement
935+4 for renewable energy credits from new utility-scale
936+5 wind projects within 160 days after June 1, 2017 (the
937+6 effective date of Public Act 99-906). For the purposes
938+7 of this initial forward procurement, the Agency shall
939+8 solicit 15-year contracts for delivery of 1,000,000
940+9 renewable energy credits delivered annually from new
941+10 utility-scale wind projects to begin delivery on June
942+11 1, 2019, if available, but not later than June 1, 2021,
943+12 unless the project has delays in the establishment of
944+13 an operating interconnection with the applicable
945+14 transmission or distribution system as a result of the
946+15 actions or inactions of the transmission or
947+16 distribution provider, or other causes for force
948+17 majeure as outlined in the procurement contract, in
949+18 which case, not later than June 1, 2022. Payments to
950+19 suppliers of renewable energy credits shall commence
951+20 upon delivery. Renewable energy credits procured under
952+21 this initial procurement shall be included in the
953+22 Agency's long-term plan and shall apply to all
954+23 renewable energy goals in this subsection (c).
955+24 (ii) Notwithstanding whether a long-term renewable
956+25 resources procurement plan has been approved, the
957+26 Agency shall conduct an initial forward procurement
958+
959+
960+
961+
962+
963+ SB1699 Enrolled - 27 - LRB103 27684 AMQ 54061 b
964+
965+
966+SB1699 Enrolled- 28 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 28 - LRB103 27684 AMQ 54061 b
967+ SB1699 Enrolled - 28 - LRB103 27684 AMQ 54061 b
968+1 for renewable energy credits from new utility-scale
969+2 solar projects and brownfield site photovoltaic
970+3 projects within one year after June 1, 2017 (the
971+4 effective date of Public Act 99-906). For the purposes
972+5 of this initial forward procurement, the Agency shall
973+6 solicit 15-year contracts for delivery of 1,000,000
974+7 renewable energy credits delivered annually from new
975+8 utility-scale solar projects and brownfield site
976+9 photovoltaic projects to begin delivery on June 1,
977+10 2019, if available, but not later than June 1, 2021,
978+11 unless the project has delays in the establishment of
979+12 an operating interconnection with the applicable
980+13 transmission or distribution system as a result of the
981+14 actions or inactions of the transmission or
982+15 distribution provider, or other causes for force
983+16 majeure as outlined in the procurement contract, in
984+17 which case, not later than June 1, 2022. The Agency may
985+18 structure this initial procurement in one or more
986+19 discrete procurement events. Payments to suppliers of
987+20 renewable energy credits shall commence upon delivery.
988+21 Renewable energy credits procured under this initial
989+22 procurement shall be included in the Agency's
990+23 long-term plan and shall apply to all renewable energy
991+24 goals in this subsection (c).
992+25 (iii) Notwithstanding whether the Commission has
993+26 approved the periodic long-term renewable resources
994+
995+
996+
997+
998+
999+ SB1699 Enrolled - 28 - LRB103 27684 AMQ 54061 b
1000+
1001+
1002+SB1699 Enrolled- 29 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 29 - LRB103 27684 AMQ 54061 b
1003+ SB1699 Enrolled - 29 - LRB103 27684 AMQ 54061 b
1004+1 procurement plan revision described in Section
1005+2 16-111.5 of the Public Utilities Act, the Agency shall
1006+3 conduct at least one subsequent forward procurement
1007+4 for renewable energy credits from new utility-scale
1008+5 wind projects, new utility-scale solar projects, and
1009+6 new brownfield site photovoltaic projects within 240
1010+7 days after the effective date of this amendatory Act
1011+8 of the 102nd General Assembly in quantities necessary
1012+9 to meet the requirements of subparagraph (C) of this
1013+10 paragraph (1) through the delivery year beginning June
1014+11 1, 2021.
1015+12 (iv) Notwithstanding whether the Commission has
1016+13 approved the periodic long-term renewable resources
1017+14 procurement plan revision described in Section
1018+15 16-111.5 of the Public Utilities Act, the Agency shall
1019+16 open capacity for each category in the Adjustable
1020+17 Block program within 90 days after the effective date
1021+18 of this amendatory Act of the 102nd General Assembly
1022+19 manner:
1023+20 (1) The Agency shall open the first block of
1024+21 annual capacity for the category described in item
1025+22 (i) of subparagraph (K) of this paragraph (1). The
1026+23 first block of annual capacity for item (i) shall
1027+24 be for at least 75 megawatts of total nameplate
1028+25 capacity. The price of the renewable energy credit
1029+26 for this block of capacity shall be 4% less than
1030+
1031+
1032+
1033+
1034+
1035+ SB1699 Enrolled - 29 - LRB103 27684 AMQ 54061 b
1036+
1037+
1038+SB1699 Enrolled- 30 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 30 - LRB103 27684 AMQ 54061 b
1039+ SB1699 Enrolled - 30 - LRB103 27684 AMQ 54061 b
1040+1 the price of the last open block in this category.
1041+2 Projects on a waitlist shall be awarded contracts
1042+3 first in the order in which they appear on the
1043+4 waitlist. Notwithstanding anything to the
1044+5 contrary, for those renewable energy credits that
1045+6 qualify and are procured under this subitem (1) of
1046+7 this item (iv), the renewable energy credit
1047+8 delivery contract value shall be paid in full,
1048+9 based on the estimated generation during the first
1049+10 15 years of operation, by the contracting
1050+11 utilities at the time that the facility producing
1051+12 the renewable energy credits is interconnected at
1052+13 the distribution system level of the utility and
1053+14 verified as energized and in compliance by the
1054+15 Program Administrator. The electric utility shall
1055+16 receive and retire all renewable energy credits
1056+17 generated by the project for the first 15 years of
1057+18 operation. Renewable energy credits generated by
1058+19 the project thereafter shall not be transferred
1059+20 under the renewable energy credit delivery
1060+21 contract with the counterparty electric utility.
1061+22 (2) The Agency shall open the first block of
1062+23 annual capacity for the category described in item
1063+24 (ii) of subparagraph (K) of this paragraph (1).
1064+25 The first block of annual capacity for item (ii)
1065+26 shall be for at least 75 megawatts of total
1066+
1067+
1068+
1069+
1070+
1071+ SB1699 Enrolled - 30 - LRB103 27684 AMQ 54061 b
1072+
1073+
1074+SB1699 Enrolled- 31 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 31 - LRB103 27684 AMQ 54061 b
1075+ SB1699 Enrolled - 31 - LRB103 27684 AMQ 54061 b
1076+1 nameplate capacity.
1077+2 (A) The price of the renewable energy
1078+3 credit for any project on a waitlist for this
1079+4 category before the opening of this block
1080+5 shall be 4% less than the price of the last
1081+6 open block in this category. Projects on the
1082+7 waitlist shall be awarded contracts first in
1083+8 the order in which they appear on the
1084+9 waitlist. Any projects that are less than or
1085+10 equal to 25 kilowatts in size on the waitlist
1086+11 for this capacity shall be moved to the
1087+12 waitlist for paragraph (1) of this item (iv).
1088+13 Notwithstanding anything to the contrary,
1089+14 projects that were on the waitlist prior to
1090+15 opening of this block shall not be required to
1091+16 be in compliance with the requirements of
1092+17 subparagraph (Q) of this paragraph (1) of this
1093+18 subsection (c). Notwithstanding anything to
1094+19 the contrary, for those renewable energy
1095+20 credits procured from projects that were on
1096+21 the waitlist for this category before the
1097+22 opening of this block 20% of the renewable
1098+23 energy credit delivery contract value, based
1099+24 on the estimated generation during the first
1100+25 15 years of operation, shall be paid by the
1101+26 contracting utilities at the time that the
1102+
1103+
1104+
1105+
1106+
1107+ SB1699 Enrolled - 31 - LRB103 27684 AMQ 54061 b
1108+
1109+
1110+SB1699 Enrolled- 32 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 32 - LRB103 27684 AMQ 54061 b
1111+ SB1699 Enrolled - 32 - LRB103 27684 AMQ 54061 b
1112+1 facility producing the renewable energy
1113+2 credits is interconnected at the distribution
1114+3 system level of the utility and verified as
1115+4 energized by the Program Administrator. The
1116+5 remaining portion shall be paid ratably over
1117+6 the subsequent 4-year period. The electric
1118+7 utility shall receive and retire all renewable
1119+8 energy credits generated by the project during
1120+9 the first 15 years of operation. Renewable
1121+10 energy credits generated by the project
1122+11 thereafter shall not be transferred under the
1123+12 renewable energy credit delivery contract with
1124+13 the counterparty electric utility.
1125+14 (B) The price of renewable energy credits
1126+15 for any project not on the waitlist for this
1127+16 category before the opening of the block shall
1128+17 be determined and published by the Agency.
1129+18 Projects not on a waitlist as of the opening
1130+19 of this block shall be subject to the
1131+20 requirements of subparagraph (Q) of this
1132+21 paragraph (1), as applicable. Projects not on
1133+22 a waitlist as of the opening of this block
1134+23 shall be subject to the contract provisions
1135+24 outlined in item (iii) of subparagraph (L) of
1136+25 this paragraph (1). The Agency shall strive to
1137+26 publish updated prices and an updated
1138+
1139+
1140+
1141+
1142+
1143+ SB1699 Enrolled - 32 - LRB103 27684 AMQ 54061 b
1144+
1145+
1146+SB1699 Enrolled- 33 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 33 - LRB103 27684 AMQ 54061 b
1147+ SB1699 Enrolled - 33 - LRB103 27684 AMQ 54061 b
1148+1 renewable energy credit delivery contract as
1149+2 quickly as possible.
1150+3 (3) For opening the first 2 blocks of annual
1151+4 capacity for projects participating in item (iii)
1152+5 of subparagraph (K) of paragraph (1) of subsection
1153+6 (c), projects shall be selected exclusively from
1154+7 those projects on the ordinal waitlists of
1155+8 community renewable generation projects
1156+9 established by the Agency based on the status of
1157+10 those ordinal waitlists as of December 31, 2020,
1158+11 and only those projects previously determined to
1159+12 be eligible for the Agency's April 2019 community
1160+13 solar project selection process.
1161+14 The first 2 blocks of annual capacity for item
1162+15 (iii) shall be for 250 megawatts of total
1163+16 nameplate capacity, with both blocks opening
1164+17 simultaneously under the schedule outlined in the
1165+18 paragraphs below. Projects shall be selected as
1166+19 follows:
1167+20 (A) The geographic balance of selected
1168+21 projects shall follow the Group classification
1169+22 found in the Agency's Revised Long-Term
1170+23 Renewable Resources Procurement Plan, with 70%
1171+24 of capacity allocated to projects on the Group
1172+25 B waitlist and 30% of capacity allocated to
1173+26 projects on the Group A waitlist.
1174+
1175+
1176+
1177+
1178+
1179+ SB1699 Enrolled - 33 - LRB103 27684 AMQ 54061 b
1180+
1181+
1182+SB1699 Enrolled- 34 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 34 - LRB103 27684 AMQ 54061 b
1183+ SB1699 Enrolled - 34 - LRB103 27684 AMQ 54061 b
1184+1 (B) Contract awards for waitlisted
1185+2 projects shall be allocated proportionate to
1186+3 the total nameplate capacity amount across
1187+4 both ordinal waitlists associated with that
1188+5 applicant firm or its affiliates, subject to
1189+6 the following conditions.
1190+7 (i) Each applicant firm having a
1191+8 waitlisted project eligible for selection
1192+9 shall receive no less than 500 kilowatts
1193+10 in awarded capacity across all groups, and
1194+11 no approved vendor may receive more than
1195+12 20% of each Group's waitlist allocation.
1196+13 (ii) Each applicant firm, upon
1197+14 receiving an award of program capacity
1198+15 proportionate to its waitlisted capacity,
1199+16 may then determine which waitlisted
1200+17 projects it chooses to be selected for a
1201+18 contract award up to that capacity amount.
1202+19 (iii) Assuming all other program
1203+20 requirements are met, applicant firms may
1204+21 adjust the nameplate capacity of applicant
1205+22 projects without losing waitlist
1206+23 eligibility, so long as no project is
1207+24 greater than 2,000 kilowatts in size.
1208+25 (iv) Assuming all other program
1209+26 requirements are met, applicant firms may
1210+
1211+
1212+
1213+
1214+
1215+ SB1699 Enrolled - 34 - LRB103 27684 AMQ 54061 b
1216+
1217+
1218+SB1699 Enrolled- 35 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 35 - LRB103 27684 AMQ 54061 b
1219+ SB1699 Enrolled - 35 - LRB103 27684 AMQ 54061 b
1220+1 adjust the expected production associated
1221+2 with applicant projects, subject to
1222+3 verification by the Program Administrator.
1223+4 (C) After a review of affiliate
1224+5 information and the current ordinal waitlists,
1225+6 the Agency shall announce the nameplate
1226+7 capacity award amounts associated with
1227+8 applicant firms no later than 90 days after
1228+9 the effective date of this amendatory Act of
1229+10 the 102nd General Assembly.
1230+11 (D) Applicant firms shall submit their
1231+12 portfolio of projects used to satisfy those
1232+13 contract awards no less than 90 days after the
1233+14 Agency's announcement. The total nameplate
1234+15 capacity of all projects used to satisfy that
1235+16 portfolio shall be no greater than the
1236+17 Agency's nameplate capacity award amount
1237+18 associated with that applicant firm. An
1238+19 applicant firm may decline, in whole or in
1239+20 part, its nameplate capacity award without
1240+21 penalty, with such unmet capacity rolled over
1241+22 to the next block opening for project
1242+23 selection under item (iii) of subparagraph (K)
1243+24 of this subsection (c). Any projects not
1244+25 included in an applicant firm's portfolio may
1245+26 reapply without prejudice upon the next block
1246+
1247+
1248+
1249+
1250+
1251+ SB1699 Enrolled - 35 - LRB103 27684 AMQ 54061 b
1252+
1253+
1254+SB1699 Enrolled- 36 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 36 - LRB103 27684 AMQ 54061 b
1255+ SB1699 Enrolled - 36 - LRB103 27684 AMQ 54061 b
1256+1 reopening for project selection under item
1257+2 (iii) of subparagraph (K) of this subsection
1258+3 (c).
1259+4 (E) The renewable energy credit delivery
1260+5 contract shall be subject to the contract and
1261+6 payment terms outlined in item (iv) of
1262+7 subparagraph (L) of this subsection (c).
1263+8 Contract instruments used for this
1264+9 subparagraph shall contain the following
1265+10 terms:
1266+11 (i) Renewable energy credit prices
1267+12 shall be fixed, without further adjustment
1268+13 under any other provision of this Act or
1269+14 for any other reason, at 10% lower than
1270+15 prices applicable to the last open block
1271+16 for this category, inclusive of any adders
1272+17 available for achieving a minimum of 50%
1273+18 of subscribers to the project's nameplate
1274+19 capacity being residential or small
1275+20 commercial customers with subscriptions of
1276+21 below 25 kilowatts in size;
1277+22 (ii) A requirement that a minimum of
1278+23 50% of subscribers to the project's
1279+24 nameplate capacity be residential or small
1280+25 commercial customers with subscriptions of
1281+26 below 25 kilowatts in size;
1282+
1283+
1284+
1285+
1286+
1287+ SB1699 Enrolled - 36 - LRB103 27684 AMQ 54061 b
1288+
1289+
1290+SB1699 Enrolled- 37 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 37 - LRB103 27684 AMQ 54061 b
1291+ SB1699 Enrolled - 37 - LRB103 27684 AMQ 54061 b
1292+1 (iii) Permission for the ability of a
1293+2 contract holder to substitute projects
1294+3 with other waitlisted projects without
1295+4 penalty should a project receive a
1296+5 non-binding estimate of costs to construct
1297+6 the interconnection facilities and any
1298+7 required distribution upgrades associated
1299+8 with that project of greater than 30 cents
1300+9 per watt AC of that project's nameplate
1301+10 capacity. In developing the applicable
1302+11 contract instrument, the Agency may
1303+12 consider whether other circumstances
1304+13 outside of the control of the applicant
1305+14 firm should also warrant project
1306+15 substitution rights.
1307+16 The Agency shall publish a finalized
1308+17 updated renewable energy credit delivery
1309+18 contract developed consistent with these terms
1310+19 and conditions no less than 30 days before
1311+20 applicant firms must submit their portfolio of
1312+21 projects pursuant to item (D).
1313+22 (F) To be eligible for an award, the
1314+23 applicant firm shall certify that not less
1315+24 than prevailing wage, as determined pursuant
1316+25 to the Illinois Prevailing Wage Act, was or
1317+26 will be paid to employees who are engaged in
1318+
1319+
1320+
1321+
1322+
1323+ SB1699 Enrolled - 37 - LRB103 27684 AMQ 54061 b
1324+
1325+
1326+SB1699 Enrolled- 38 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 38 - LRB103 27684 AMQ 54061 b
1327+ SB1699 Enrolled - 38 - LRB103 27684 AMQ 54061 b
1328+1 construction activities associated with a
1329+2 selected project.
1330+3 (4) The Agency shall open the first block of
1331+4 annual capacity for the category described in item
1332+5 (iv) of subparagraph (K) of this paragraph (1).
1333+6 The first block of annual capacity for item (iv)
1334+7 shall be for at least 50 megawatts of total
1335+8 nameplate capacity. Renewable energy credit prices
1336+9 shall be fixed, without further adjustment under
1337+10 any other provision of this Act or for any other
1338+11 reason, at the price in the last open block in the
1339+12 category described in item (ii) of subparagraph
1340+13 (K) of this paragraph (1). Pricing for future
1341+14 blocks of annual capacity for this category may be
1342+15 adjusted in the Agency's second revision to its
1343+16 Long-Term Renewable Resources Procurement Plan.
1344+17 Projects in this category shall be subject to the
1345+18 contract terms outlined in item (iv) of
1346+19 subparagraph (L) of this paragraph (1).
1347+20 (5) The Agency shall open the equivalent of 2
1348+21 years of annual capacity for the category
1349+22 described in item (v) of subparagraph (K) of this
1350+23 paragraph (1). The first block of annual capacity
1351+24 for item (v) shall be for at least 10 megawatts of
1352+25 total nameplate capacity. Notwithstanding the
1353+26 provisions of item (v) of subparagraph (K) of this
1354+
1355+
1356+
1357+
1358+
1359+ SB1699 Enrolled - 38 - LRB103 27684 AMQ 54061 b
1360+
1361+
1362+SB1699 Enrolled- 39 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 39 - LRB103 27684 AMQ 54061 b
1363+ SB1699 Enrolled - 39 - LRB103 27684 AMQ 54061 b
1364+1 paragraph (1), for the purpose of this initial
1365+2 block, the agency shall accept new project
1366+3 applications intended to increase the diversity of
1367+4 areas hosting community solar projects, the
1368+5 business models of projects, and the size of
1369+6 projects, as described by the Agency in its
1370+7 long-term renewable resources procurement plan
1371+8 that is approved as of the effective date of this
1372+9 amendatory Act of the 102nd General Assembly.
1373+10 Projects in this category shall be subject to the
1374+11 contract terms outlined in item (iii) of
1375+12 subsection (L) of this paragraph (1).
1376+13 (6) The Agency shall open the first blocks of
1377+14 annual capacity for the category described in item
1378+15 (vi) of subparagraph (K) of this paragraph (1),
1379+16 with allocations of capacity within the block
1380+17 generally matching the historical share of block
1381+18 capacity allocated between the category described
1382+19 in items (i) and (ii) of subparagraph (K) of this
1383+20 paragraph (1). The first two blocks of annual
1384+21 capacity for item (vi) shall be for at least 75
1385+22 megawatts of total nameplate capacity. The price
1386+23 of renewable energy credits for the blocks of
1387+24 capacity shall be 4% less than the price of the
1388+25 last open blocks in the categories described in
1389+26 items (i) and (ii) of subparagraph (K) of this
1390+
1391+
1392+
1393+
1394+
1395+ SB1699 Enrolled - 39 - LRB103 27684 AMQ 54061 b
1396+
1397+
1398+SB1699 Enrolled- 40 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 40 - LRB103 27684 AMQ 54061 b
1399+ SB1699 Enrolled - 40 - LRB103 27684 AMQ 54061 b
1400+1 paragraph (1). Pricing for future blocks of annual
1401+2 capacity for this category may be adjusted in the
1402+3 Agency's second revision to its Long-Term
1403+4 Renewable Resources Procurement Plan. Projects in
1404+5 this category shall be subject to the applicable
1405+6 contract terms outlined in items (ii) and (iii) of
1406+7 subparagraph (L) of this paragraph (1).
1407+8 (v) Upon the effective date of this amendatory Act
1408+9 of the 102nd General Assembly, for all competitive
1409+10 procurements and any procurements of renewable energy
1410+11 credit from new utility-scale wind and new
1411+12 utility-scale photovoltaic projects, the Agency shall
1412+13 procure indexed renewable energy credits and direct
1413+14 respondents to offer a strike price.
1414+15 (1) The purchase price of the indexed
1415+16 renewable energy credit payment shall be
1416+17 calculated for each settlement period. That
1417+18 payment, for any settlement period, shall be equal
1418+19 to the difference resulting from subtracting the
1419+20 strike price from the index price for that
1420+21 settlement period. If this difference results in a
1421+22 negative number, the indexed REC counterparty
1422+23 shall owe the seller the absolute value multiplied
1423+24 by the quantity of energy produced in the relevant
1424+25 settlement period. If this difference results in a
1425+26 positive number, the seller shall owe the indexed
1426+
1427+
1428+
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1431+ SB1699 Enrolled - 40 - LRB103 27684 AMQ 54061 b
1432+
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1435+ SB1699 Enrolled - 41 - LRB103 27684 AMQ 54061 b
1436+1 REC counterparty this amount multiplied by the
1437+2 quantity of energy produced in the relevant
1438+3 settlement period.
1439+4 (2) Parties shall cash settle every month,
1440+5 summing up all settlements (both positive and
1441+6 negative, if applicable) for the prior month.
1442+7 (3) To ensure funding in the annual budget
1443+8 established under subparagraph (E) for indexed
1444+9 renewable energy credit procurements for each year
1445+10 of the term of such contracts, which must have a
1446+11 minimum tenure of 20 calendar years, the
1447+12 procurement administrator, Agency, Commission
1448+13 staff, and procurement monitor shall quantify the
1449+14 annual cost of the contract by utilizing an
1450+15 industry-standard, third-party forward price curve
1451+16 for energy at the appropriate hub or load zone,
1452+17 including the estimated magnitude and timing of
1453+18 the price effects related to federal carbon
1454+19 controls. Each forward price curve shall contain a
1455+20 specific value of the forecasted market price of
1456+21 electricity for each annual delivery year of the
1457+22 contract. For procurement planning purposes, the
1458+23 impact on the annual budget for the cost of
1459+24 indexed renewable energy credits for each delivery
1460+25 year shall be determined as the expected annual
1461+26 contract expenditure for that year, equaling the
1462+
1463+
1464+
1465+
1466+
1467+ SB1699 Enrolled - 41 - LRB103 27684 AMQ 54061 b
1468+
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1471+ SB1699 Enrolled - 42 - LRB103 27684 AMQ 54061 b
1472+1 difference between (i) the sum across all relevant
1473+2 contracts of the applicable strike price
1474+3 multiplied by contract quantity and (ii) the sum
1475+4 across all relevant contracts of the forward price
1476+5 curve for the applicable load zone for that year
1477+6 multiplied by contract quantity. The contracting
1478+7 utility shall not assume an obligation in excess
1479+8 of the estimated annual cost of the contracts for
1480+9 indexed renewable energy credits. Forward curves
1481+10 shall be revised on an annual basis as updated
1482+11 forward price curves are released and filed with
1483+12 the Commission in the proceeding approving the
1484+13 Agency's most recent long-term renewable resources
1485+14 procurement plan. If the expected contract spend
1486+15 is higher or lower than the total quantity of
1487+16 contracts multiplied by the forward price curve
1488+17 value for that year, the forward price curve shall
1489+18 be updated by the procurement administrator, in
1490+19 consultation with the Agency, Commission staff,
1491+20 and procurement monitors, using then-currently
1492+21 available price forecast data and additional
1493+22 budget dollars shall be obligated or reobligated
1494+23 as appropriate.
1495+24 (4) To ensure that indexed renewable energy
1496+25 credit prices remain predictable and affordable,
1497+26 the Agency may consider the institution of a price
1498+
1499+
1500+
1501+
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1504+
1505+
1506+SB1699 Enrolled- 43 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 43 - LRB103 27684 AMQ 54061 b
1507+ SB1699 Enrolled - 43 - LRB103 27684 AMQ 54061 b
1508+1 collar on REC prices paid under indexed renewable
1509+2 energy credit procurements establishing floor and
1510+3 ceiling REC prices applicable to indexed REC
1511+4 contract prices. Any price collars applicable to
1512+5 indexed REC procurements shall be proposed by the
1513+6 Agency through its long-term renewable resources
1514+7 procurement plan.
1515+8 (vi) All procurements under this subparagraph (G)
1516+9 shall comply with the geographic requirements in
1517+10 subparagraph (I) of this paragraph (1) and shall
1518+11 follow the procurement processes and procedures
1519+12 described in this Section and Section 16-111.5 of the
1520+13 Public Utilities Act to the extent practicable, and
1521+14 these processes and procedures may be expedited to
1522+15 accommodate the schedule established by this
1523+16 subparagraph (G).
1524+17 (H) The procurement of renewable energy resources for
1525+18 a given delivery year shall be reduced as described in
1526+19 this subparagraph (H) if an alternative retail electric
1527+20 supplier meets the requirements described in this
1528+21 subparagraph (H).
1529+22 (i) Within 45 days after June 1, 2017 (the
1530+23 effective date of Public Act 99-906), an alternative
1531+24 retail electric supplier or its successor shall submit
1532+25 an informational filing to the Illinois Commerce
1533+26 Commission certifying that, as of December 31, 2015,
1534+
1535+
1536+
1537+
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1539+ SB1699 Enrolled - 43 - LRB103 27684 AMQ 54061 b
1540+
1541+
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1543+ SB1699 Enrolled - 44 - LRB103 27684 AMQ 54061 b
1544+1 the alternative retail electric supplier owned one or
1545+2 more electric generating facilities that generates
1546+3 renewable energy resources as defined in Section 1-10
1547+4 of this Act, provided that such facilities are not
1548+5 powered by wind or photovoltaics, and the facilities
1549+6 generate one renewable energy credit for each
1550+7 megawatthour of energy produced from the facility.
1551+8 The informational filing shall identify each
1552+9 facility that was eligible to satisfy the alternative
1553+10 retail electric supplier's obligations under Section
1554+11 16-115D of the Public Utilities Act as described in
1555+12 this item (i).
1556+13 (ii) For a given delivery year, the alternative
1557+14 retail electric supplier may elect to supply its
1558+15 retail customers with renewable energy credits from
1559+16 the facility or facilities described in item (i) of
1560+17 this subparagraph (H) that continue to be owned by the
1561+18 alternative retail electric supplier.
1562+19 (iii) The alternative retail electric supplier
1563+20 shall notify the Agency and the applicable utility, no
1564+21 later than February 28 of the year preceding the
1565+22 applicable delivery year or 15 days after June 1, 2017
1566+23 (the effective date of Public Act 99-906), whichever
1567+24 is later, of its election under item (ii) of this
1568+25 subparagraph (H) to supply renewable energy credits to
1569+26 retail customers of the utility. Such election shall
1570+
1571+
1572+
1573+
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1575+ SB1699 Enrolled - 44 - LRB103 27684 AMQ 54061 b
1576+
1577+
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1579+ SB1699 Enrolled - 45 - LRB103 27684 AMQ 54061 b
1580+1 identify the amount of renewable energy credits to be
1581+2 supplied by the alternative retail electric supplier
1582+3 to the utility's retail customers and the source of
1583+4 the renewable energy credits identified in the
1584+5 informational filing as described in item (i) of this
1585+6 subparagraph (H), subject to the following
1586+7 limitations:
1587+8 For the delivery year beginning June 1, 2018,
1588+9 the maximum amount of renewable energy credits to
1589+10 be supplied by an alternative retail electric
1590+11 supplier under this subparagraph (H) shall be 68%
1591+12 multiplied by 25% multiplied by 14.5% multiplied
1592+13 by the amount of metered electricity
1593+14 (megawatt-hours) delivered by the alternative
1594+15 retail electric supplier to Illinois retail
1595+16 customers during the delivery year ending May 31,
1596+17 2016.
1597+18 For delivery years beginning June 1, 2019 and
1598+19 each year thereafter, the maximum amount of
1599+20 renewable energy credits to be supplied by an
1600+21 alternative retail electric supplier under this
1601+22 subparagraph (H) shall be 68% multiplied by 50%
1602+23 multiplied by 16% multiplied by the amount of
1603+24 metered electricity (megawatt-hours) delivered by
1604+25 the alternative retail electric supplier to
1605+26 Illinois retail customers during the delivery year
1606+
1607+
1608+
1609+
1610+
1611+ SB1699 Enrolled - 45 - LRB103 27684 AMQ 54061 b
1612+
1613+
1614+SB1699 Enrolled- 46 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 46 - LRB103 27684 AMQ 54061 b
1615+ SB1699 Enrolled - 46 - LRB103 27684 AMQ 54061 b
1616+1 ending May 31, 2016, provided that the 16% value
1617+2 shall increase by 1.5% each delivery year
1618+3 thereafter to 25% by the delivery year beginning
1619+4 June 1, 2025, and thereafter the 25% value shall
1620+5 apply to each delivery year.
1621+6 For each delivery year, the total amount of
1622+7 renewable energy credits supplied by all alternative
1623+8 retail electric suppliers under this subparagraph (H)
1624+9 shall not exceed 9% of the Illinois target renewable
1625+10 energy credit quantity. The Illinois target renewable
1626+11 energy credit quantity for the delivery year beginning
1627+12 June 1, 2018 is 14.5% multiplied by the total amount of
1628+13 metered electricity (megawatt-hours) delivered in the
1629+14 delivery year immediately preceding that delivery
1630+15 year, provided that the 14.5% shall increase by 1.5%
1631+16 each delivery year thereafter to 25% by the delivery
1632+17 year beginning June 1, 2025, and thereafter the 25%
1633+18 value shall apply to each delivery year.
1634+19 If the requirements set forth in items (i) through
1635+20 (iii) of this subparagraph (H) are met, the charges
1636+21 that would otherwise be applicable to the retail
1637+22 customers of the alternative retail electric supplier
1638+23 under paragraph (6) of this subsection (c) for the
1639+24 applicable delivery year shall be reduced by the ratio
1640+25 of the quantity of renewable energy credits supplied
1641+26 by the alternative retail electric supplier compared
1642+
1643+
1644+
1645+
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1647+ SB1699 Enrolled - 46 - LRB103 27684 AMQ 54061 b
1648+
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1651+ SB1699 Enrolled - 47 - LRB103 27684 AMQ 54061 b
1652+1 to that supplier's target renewable energy credit
1653+2 quantity. The supplier's target renewable energy
1654+3 credit quantity for the delivery year beginning June
1655+4 1, 2018 is 14.5% multiplied by the total amount of
1656+5 metered electricity (megawatt-hours) delivered by the
1657+6 alternative retail supplier in that delivery year,
1658+7 provided that the 14.5% shall increase by 1.5% each
1659+8 delivery year thereafter to 25% by the delivery year
1660+9 beginning June 1, 2025, and thereafter the 25% value
1661+10 shall apply to each delivery year.
1662+11 On or before April 1 of each year, the Agency shall
1663+12 annually publish a report on its website that
1664+13 identifies the aggregate amount of renewable energy
1665+14 credits supplied by alternative retail electric
1666+15 suppliers under this subparagraph (H).
1667+16 (I) The Agency shall design its long-term renewable
1668+17 energy procurement plan to maximize the State's interest
1669+18 in the health, safety, and welfare of its residents,
1670+19 including but not limited to minimizing sulfur dioxide,
1671+20 nitrogen oxide, particulate matter and other pollution
1672+21 that adversely affects public health in this State,
1673+22 increasing fuel and resource diversity in this State,
1674+23 enhancing the reliability and resiliency of the
1675+24 electricity distribution system in this State, meeting
1676+25 goals to limit carbon dioxide emissions under federal or
1677+26 State law, and contributing to a cleaner and healthier
1678+
1679+
1680+
1681+
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1683+ SB1699 Enrolled - 47 - LRB103 27684 AMQ 54061 b
1684+
1685+
1686+SB1699 Enrolled- 48 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 48 - LRB103 27684 AMQ 54061 b
1687+ SB1699 Enrolled - 48 - LRB103 27684 AMQ 54061 b
1688+1 environment for the citizens of this State. In order to
1689+2 further these legislative purposes, renewable energy
1690+3 credits shall be eligible to be counted toward the
1691+4 renewable energy requirements of this subsection (c) if
1692+5 they are generated from facilities located in this State.
1693+6 The Agency may qualify renewable energy credits from
1694+7 facilities located in states adjacent to Illinois or
1695+8 renewable energy credits associated with the electricity
1696+9 generated by a utility-scale wind energy facility or
1697+10 utility-scale photovoltaic facility and transmitted by a
1698+11 qualifying direct current project described in subsection
1699+12 (b-5) of Section 8-406 of the Public Utilities Act to a
1700+13 delivery point on the electric transmission grid located
1701+14 in this State or a state adjacent to Illinois, if the
1702+15 generator demonstrates and the Agency determines that the
1703+16 operation of such facility or facilities will help promote
1704+17 the State's interest in the health, safety, and welfare of
1705+18 its residents based on the public interest criteria
1706+19 described above. For the purposes of this Section,
1707+20 renewable resources that are delivered via a high voltage
1708+21 direct current converter station located in Illinois shall
1709+22 be deemed generated in Illinois at the time and location
1710+23 the energy is converted to alternating current by the high
1711+24 voltage direct current converter station if the high
1712+25 voltage direct current transmission line: (i) after the
1713+26 effective date of this amendatory Act of the 102nd General
1714+
1715+
1716+
1717+
1718+
1719+ SB1699 Enrolled - 48 - LRB103 27684 AMQ 54061 b
1720+
1721+
1722+SB1699 Enrolled- 49 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 49 - LRB103 27684 AMQ 54061 b
1723+ SB1699 Enrolled - 49 - LRB103 27684 AMQ 54061 b
1724+1 Assembly, was constructed with a project labor agreement;
1725+2 (ii) is capable of transmitting electricity at 525kv;
1726+3 (iii) has an Illinois converter station located and
1727+4 interconnected in the region of the PJM Interconnection,
1728+5 LLC; (iv) does not operate as a public utility; and (v) if
1729+6 the high voltage direct current transmission line was
1730+7 energized after June 1, 2023. To ensure that the public
1731+8 interest criteria are applied to the procurement and given
1732+9 full effect, the Agency's long-term procurement plan shall
1733+10 describe in detail how each public interest factor shall
1734+11 be considered and weighted for facilities located in
1735+12 states adjacent to Illinois.
1736+13 (J) In order to promote the competitive development of
1737+14 renewable energy resources in furtherance of the State's
1738+15 interest in the health, safety, and welfare of its
1739+16 residents, renewable energy credits shall not be eligible
1740+17 to be counted toward the renewable energy requirements of
1741+18 this subsection (c) if they are sourced from a generating
1742+19 unit whose costs were being recovered through rates
1743+20 regulated by this State or any other state or states on or
1744+21 after January 1, 2017. Each contract executed to purchase
1745+22 renewable energy credits under this subsection (c) shall
1746+23 provide for the contract's termination if the costs of the
1747+24 generating unit supplying the renewable energy credits
1748+25 subsequently begin to be recovered through rates regulated
1749+26 by this State or any other state or states; and each
1750+
1751+
1752+
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1759+ SB1699 Enrolled - 50 - LRB103 27684 AMQ 54061 b
1760+1 contract shall further provide that, in that event, the
1761+2 supplier of the credits must return 110% of all payments
1762+3 received under the contract. Amounts returned under the
1763+4 requirements of this subparagraph (J) shall be retained by
1764+5 the utility and all of these amounts shall be used for the
1765+6 procurement of additional renewable energy credits from
1766+7 new wind or new photovoltaic resources as defined in this
1767+8 subsection (c). The long-term plan shall provide that
1768+9 these renewable energy credits shall be procured in the
1769+10 next procurement event.
1770+11 Notwithstanding the limitations of this subparagraph
1771+12 (J), renewable energy credits sourced from generating
1772+13 units that are constructed, purchased, owned, or leased by
1773+14 an electric utility as part of an approved project,
1774+15 program, or pilot under Section 1-56 of this Act shall be
1775+16 eligible to be counted toward the renewable energy
1776+17 requirements of this subsection (c), regardless of how the
1777+18 costs of these units are recovered. As long as a
1778+19 generating unit or an identifiable portion of a generating
1779+20 unit has not had and does not have its costs recovered
1780+21 through rates regulated by this State or any other state,
1781+22 HVDC renewable energy credits associated with that
1782+23 generating unit or identifiable portion thereof shall be
1783+24 eligible to be counted toward the renewable energy
1784+25 requirements of this subsection (c).
1785+26 (K) The long-term renewable resources procurement plan
1786+
1787+
1788+
1789+
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1791+ SB1699 Enrolled - 50 - LRB103 27684 AMQ 54061 b
1792+
1793+
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1795+ SB1699 Enrolled - 51 - LRB103 27684 AMQ 54061 b
1796+1 developed by the Agency in accordance with subparagraph
1797+2 (A) of this paragraph (1) shall include an Adjustable
1798+3 Block program for the procurement of renewable energy
1799+4 credits from new photovoltaic projects that are
1800+5 distributed renewable energy generation devices or new
1801+6 photovoltaic community renewable generation projects. The
1802+7 Adjustable Block program shall be generally designed to
1803+8 provide for the steady, predictable, and sustainable
1804+9 growth of new solar photovoltaic development in Illinois.
1805+10 To this end, the Adjustable Block program shall provide a
1806+11 transparent annual schedule of prices and quantities to
1807+12 enable the photovoltaic market to scale up and for
1808+13 renewable energy credit prices to adjust at a predictable
1809+14 rate over time. The prices set by the Adjustable Block
1810+15 program can be reflected as a set value or as the product
1811+16 of a formula.
1812+17 The Adjustable Block program shall include for each
1813+18 category of eligible projects for each delivery year: a
1814+19 single block of nameplate capacity, a price for renewable
1815+20 energy credits within that block, and the terms and
1816+21 conditions for securing a spot on a waitlist once the
1817+22 block is fully committed or reserved. Except as outlined
1818+23 below, the waitlist of projects in a given year will carry
1819+24 over to apply to the subsequent year when another block is
1820+25 opened. Only projects energized on or after June 1, 2017
1821+26 shall be eligible for the Adjustable Block program. For
1822+
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1831+ SB1699 Enrolled - 52 - LRB103 27684 AMQ 54061 b
1832+1 each category for each delivery year the Agency shall
1833+2 determine the amount of generation capacity in each block,
1834+3 and the purchase price for each block, provided that the
1835+4 purchase price provided and the total amount of generation
1836+5 in all blocks for all categories shall be sufficient to
1837+6 meet the goals in this subsection (c). The Agency shall
1838+7 strive to issue a single block sized to provide for
1839+8 stability and market growth. The Agency shall establish
1840+9 program eligibility requirements that ensure that projects
1841+10 that enter the program are sufficiently mature to indicate
1842+11 a demonstrable path to completion. The Agency may
1843+12 periodically review its prior decisions establishing the
1844+13 amount of generation capacity in each block, and the
1845+14 purchase price for each block, and may propose, on an
1846+15 expedited basis, changes to these previously set values,
1847+16 including but not limited to redistributing these amounts
1848+17 and the available funds as necessary and appropriate,
1849+18 subject to Commission approval as part of the periodic
1850+19 plan revision process described in Section 16-111.5 of the
1851+20 Public Utilities Act. The Agency may define different
1852+21 block sizes, purchase prices, or other distinct terms and
1853+22 conditions for projects located in different utility
1854+23 service territories if the Agency deems it necessary to
1855+24 meet the goals in this subsection (c).
1856+25 The Adjustable Block program shall include the
1857+26 following categories in at least the following amounts:
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1868+1 (i) At least 20% from distributed renewable energy
1869+2 generation devices with a nameplate capacity of no
1870+3 more than 25 kilowatts.
1871+4 (ii) At least 20% from distributed renewable
1872+5 energy generation devices with a nameplate capacity of
1873+6 more than 25 kilowatts and no more than 5,000
1874+7 kilowatts. The Agency may create sub-categories within
1875+8 this category to account for the differences between
1876+9 projects for small commercial customers, large
1877+10 commercial customers, and public or non-profit
1878+11 customers.
1879+12 (iii) At least 30% from photovoltaic community
1880+13 renewable generation projects. Capacity for this
1881+14 category for the first 2 delivery years after the
1882+15 effective date of this amendatory Act of the 102nd
1883+16 General Assembly shall be allocated to waitlist
1884+17 projects as provided in paragraph (3) of item (iv) of
1885+18 subparagraph (G). Starting in the third delivery year
1886+19 after the effective date of this amendatory Act of the
1887+20 102nd General Assembly or earlier if the Agency
1888+21 determines there is additional capacity needed for to
1889+22 meet previous delivery year requirements, the
1890+23 following shall apply:
1891+24 (1) the Agency shall select projects on a
1892+25 first-come, first-serve basis, however the Agency
1893+26 may suggest additional methods to prioritize
1894+
1895+
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1904+1 projects that are submitted at the same time;
1905+2 (2) projects shall have subscriptions of 25 kW
1906+3 or less for at least 50% of the facility's
1907+4 nameplate capacity and the Agency shall price the
1908+5 renewable energy credits with that as a factor;
1909+6 (3) projects shall not be colocated with one
1910+7 or more other community renewable generation
1911+8 projects, as defined in the Agency's first revised
1912+9 long-term renewable resources procurement plan
1913+10 approved by the Commission on February 18, 2020,
1914+11 such that the aggregate nameplate capacity exceeds
1915+12 5,000 kilowatts; and
1916+13 (4) projects greater than 2 MW may not apply
1917+14 until after the approval of the Agency's revised
1918+15 Long-Term Renewable Resources Procurement Plan
1919+16 after the effective date of this amendatory Act of
1920+17 the 102nd General Assembly.
1921+18 (iv) At least 15% from distributed renewable
1922+19 generation devices or photovoltaic community renewable
1923+20 generation projects installed on at public school land
1924+21 schools. The Agency may create subcategories within
1925+22 this category to account for the differences between
1926+23 project size or location. Projects located within
1927+24 environmental justice communities or within
1928+25 Organizational Units that fall within Tier 1 or Tier 2
1929+26 shall be given priority. Each of the Agency's periodic
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1931+
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1939+ SB1699 Enrolled - 55 - LRB103 27684 AMQ 54061 b
1940+1 updates to its long-term renewable resources
1941+2 procurement plan to incorporate the procurement
1942+3 described in this subparagraph (iv) shall also include
1943+4 the proposed quantities or blocks, pricing, and
1944+5 contract terms applicable to the procurement as
1945+6 indicated herein. In each such update and procurement,
1946+7 the Agency shall set the renewable energy credit price
1947+8 and establish payment terms for the renewable energy
1948+9 credits procured pursuant to this subparagraph (iv)
1949+10 that make it feasible and affordable for public
1950+11 schools to install photovoltaic distributed renewable
1951+12 energy devices on their premises, including, but not
1952+13 limited to, those public schools subject to the
1953+14 prioritization provisions of this subparagraph. For
1954+15 the purposes of this item (iv):
1955+16 "Environmental Justice Community" shall have the
1956+17 same meaning set forth in the Agency's long-term
1957+18 renewable resources procurement plan;
1958+19 "Organization Unit", "Tier 1" and "Tier 2" shall
1959+20 have the meanings set for in Section 18-8.15 of the
1960+21 School Code;
1961+22 "Public schools" shall have the meaning set forth
1962+23 in Section 1-3 of the School Code and includes public
1963+24 institutions of higher education, as defined in the
1964+25 Board of Higher Education Act.
1965+26 (v) At least 5% from community-driven community
1966+
1967+
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1969+
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1975+ SB1699 Enrolled - 56 - LRB103 27684 AMQ 54061 b
1976+1 solar projects intended to provide more direct and
1977+2 tangible connection and benefits to the communities
1978+3 which they serve or in which they operate and,
1979+4 additionally, to increase the variety of community
1980+5 solar locations, models, and options in Illinois. As
1981+6 part of its long-term renewable resources procurement
1982+7 plan, the Agency shall develop selection criteria for
1983+8 projects participating in this category. Nothing in
1984+9 this Section shall preclude the Agency from creating a
1985+10 selection process that maximizes community ownership
1986+11 and community benefits in selecting projects to
1987+12 receive renewable energy credits. Selection criteria
1988+13 shall include:
1989+14 (1) community ownership or community
1990+15 wealth-building;
1991+16 (2) additional direct and indirect community
1992+17 benefit, beyond project participation as a
1993+18 subscriber, including, but not limited to,
1994+19 economic, environmental, social, cultural, and
1995+20 physical benefits;
1996+21 (3) meaningful involvement in project
1997+22 organization and development by community members
1998+23 or nonprofit organizations or public entities
1999+24 located in or serving the community;
2000+25 (4) engagement in project operations and
2001+26 management by nonprofit organizations, public
2002+
2003+
2004+
2005+
2006+
2007+ SB1699 Enrolled - 56 - LRB103 27684 AMQ 54061 b
2008+
2009+
2010+SB1699 Enrolled- 57 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 57 - LRB103 27684 AMQ 54061 b
2011+ SB1699 Enrolled - 57 - LRB103 27684 AMQ 54061 b
2012+1 entities, or community members; and
2013+2 (5) whether a project is developed in response
2014+3 to a site-specific RFP developed by community
2015+4 members or a nonprofit organization or public
2016+5 entity located in or serving the community.
2017+6 Selection criteria may also prioritize projects
2018+7 that:
2019+8 (1) are developed in collaboration with or to
2020+9 provide complementary opportunities for the Clean
2021+10 Jobs Workforce Network Program, the Illinois
2022+11 Climate Works Preapprenticeship Program, the
2023+12 Returning Residents Clean Jobs Training Program,
2024+13 the Clean Energy Contractor Incubator Program, or
2025+14 the Clean Energy Primes Contractor Accelerator
2026+15 Program;
2027+16 (2) increase the diversity of locations of
2028+17 community solar projects in Illinois, including by
2029+18 locating in urban areas and population centers;
2030+19 (3) are located in Equity Investment Eligible
2031+20 Communities;
2032+21 (4) are not greenfield projects;
2033+22 (5) serve only local subscribers;
2034+23 (6) have a nameplate capacity that does not
2035+24 exceed 500 kW;
2036+25 (7) are developed by an equity eligible
2037+26 contractor; or
2038+
2039+
2040+
2041+
2042+
2043+ SB1699 Enrolled - 57 - LRB103 27684 AMQ 54061 b
2044+
2045+
2046+SB1699 Enrolled- 58 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 58 - LRB103 27684 AMQ 54061 b
2047+ SB1699 Enrolled - 58 - LRB103 27684 AMQ 54061 b
2048+1 (8) otherwise meaningfully advance the goals
2049+2 of providing more direct and tangible connection
2050+3 and benefits to the communities which they serve
2051+4 or in which they operate and increasing the
2052+5 variety of community solar locations, models, and
2053+6 options in Illinois.
2054+7 For the purposes of this item (v):
2055+8 "Community" means a social unit in which people
2056+9 come together regularly to effect change; a social
2057+10 unit in which participants are marked by a cooperative
2058+11 spirit, a common purpose, or shared interests or
2059+12 characteristics; or a space understood by its
2060+13 residents to be delineated through geographic
2061+14 boundaries or landmarks.
2062+15 "Community benefit" means a range of services and
2063+16 activities that provide affirmative, economic,
2064+17 environmental, social, cultural, or physical value to
2065+18 a community; or a mechanism that enables economic
2066+19 development, high-quality employment, and education
2067+20 opportunities for local workers and residents, or
2068+21 formal monitoring and oversight structures such that
2069+22 community members may ensure that those services and
2070+23 activities respond to local knowledge and needs.
2071+24 "Community ownership" means an arrangement in
2072+25 which an electric generating facility is, or over time
2073+26 will be, in significant part, owned collectively by
2074+
2075+
2076+
2077+
2078+
2079+ SB1699 Enrolled - 58 - LRB103 27684 AMQ 54061 b
2080+
2081+
2082+SB1699 Enrolled- 59 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 59 - LRB103 27684 AMQ 54061 b
2083+ SB1699 Enrolled - 59 - LRB103 27684 AMQ 54061 b
2084+1 members of the community to which an electric
2085+2 generating facility provides benefits; members of that
2086+3 community participate in decisions regarding the
2087+4 governance, operation, maintenance, and upgrades of
2088+5 and to that facility; and members of that community
2089+6 benefit from regular use of that facility.
2090+7 Terms and guidance within these criteria that are
2091+8 not defined in this item (v) shall be defined by the
2092+9 Agency, with stakeholder input, during the development
2093+10 of the Agency's long-term renewable resources
2094+11 procurement plan. The Agency shall develop regular
2095+12 opportunities for projects to submit applications for
2096+13 projects under this category, and develop selection
2097+14 criteria that gives preference to projects that better
2098+15 meet individual criteria as well as projects that
2099+16 address a higher number of criteria.
2100+17 (vi) At least 10% from distributed renewable
2101+18 energy generation devices, which includes distributed
2102+19 renewable energy devices with a nameplate capacity
2103+20 under 5,000 kilowatts or photovoltaic community
2104+21 renewable generation projects, from applicants that
2105+22 are equity eligible contractors. The Agency may create
2106+23 subcategories within this category to account for the
2107+24 differences between project size and type. The Agency
2108+25 shall propose to increase the percentage in this item
2109+26 (vi) over time to 40% based on factors, including, but
2110+
2111+
2112+
2113+
2114+
2115+ SB1699 Enrolled - 59 - LRB103 27684 AMQ 54061 b
2116+
2117+
2118+SB1699 Enrolled- 60 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 60 - LRB103 27684 AMQ 54061 b
2119+ SB1699 Enrolled - 60 - LRB103 27684 AMQ 54061 b
2120+1 not limited to, the number of equity eligible
2121+2 contractors and capacity used in this item (vi) in
2122+3 previous delivery years.
2123+4 The Agency shall propose a payment structure for
2124+5 contracts executed pursuant to this paragraph under
2125+6 which, upon a demonstration of qualification or need,
2126+7 applicant firms are advanced capital disbursed after
2127+8 contract execution but before the contracted project's
2128+9 energization. The amount or percentage of capital
2129+10 advanced prior to project energization shall be
2130+11 sufficient to both cover any increase in development
2131+12 costs resulting from prevailing wage requirements or
2132+13 project-labor agreements, and designed to overcome
2133+14 barriers in access to capital faced by equity eligible
2134+15 contractors. The amount or percentage of advanced
2135+16 capital may vary by subcategory within this category
2136+17 and by an applicant's demonstration of need, with such
2137+18 levels to be established through the Long-Term
2138+19 Renewable Resources Procurement Plan authorized under
2139+20 subparagraph (A) of paragraph (1) of subsection (c) of
2140+21 this Section.
2141+22 Contracts developed featuring capital advanced
2142+23 prior to a project's energization shall feature
2143+24 provisions to ensure both the successful development
2144+25 of applicant projects and the delivery of the
2145+26 renewable energy credits for the full term of the
2146+
2147+
2148+
2149+
2150+
2151+ SB1699 Enrolled - 60 - LRB103 27684 AMQ 54061 b
2152+
2153+
2154+SB1699 Enrolled- 61 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 61 - LRB103 27684 AMQ 54061 b
2155+ SB1699 Enrolled - 61 - LRB103 27684 AMQ 54061 b
2156+1 contract, including ongoing collateral requirements
2157+2 and other provisions deemed necessary by the Agency,
2158+3 and may include energization timelines longer than for
2159+4 comparable project types. The percentage or amount of
2160+5 capital advanced prior to project energization shall
2161+6 not operate to increase the overall contract value,
2162+7 however contracts executed under this subparagraph may
2163+8 feature renewable energy credit prices higher than
2164+9 those offered to similar projects participating in
2165+10 other categories. Capital advanced prior to
2166+11 energization shall serve to reduce the ratable
2167+12 payments made after energization under items (ii) and
2168+13 (iii) of subparagraph (L) or payments made for each
2169+14 renewable energy credit delivery under item (iv) of
2170+15 subparagraph (L).
2171+16 (vii) The remaining capacity shall be allocated by
2172+17 the Agency in order to respond to market demand. The
2173+18 Agency shall allocate any discretionary capacity prior
2174+19 to the beginning of each delivery year.
2175+20 To the extent there is uncontracted capacity from any
2176+21 block in any of categories (i) through (vi) at the end of a
2177+22 delivery year, the Agency shall redistribute that capacity
2178+23 to one or more other categories giving priority to
2179+24 categories with projects on a waitlist. The redistributed
2180+25 capacity shall be added to the annual capacity in the
2181+26 subsequent delivery year, and the price for renewable
2182+
2183+
2184+
2185+
2186+
2187+ SB1699 Enrolled - 61 - LRB103 27684 AMQ 54061 b
2188+
2189+
2190+SB1699 Enrolled- 62 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 62 - LRB103 27684 AMQ 54061 b
2191+ SB1699 Enrolled - 62 - LRB103 27684 AMQ 54061 b
2192+1 energy credits shall be the price for the new delivery
2193+2 year. Redistributed capacity shall not be considered
2194+3 redistributed when determining whether the goals in this
2195+4 subsection (K) have been met.
2196+5 Notwithstanding anything to the contrary, as the
2197+6 Agency increases the capacity in item (vi) to 40% over
2198+7 time, the Agency may reduce the capacity of items (i)
2199+8 through (v) proportionate to the capacity of the
2200+9 categories of projects in item (vi), to achieve a balance
2201+10 of project types.
2202+11 The Adjustable Block program shall be designed to
2203+12 ensure that renewable energy credits are procured from
2204+13 projects in diverse locations and are not concentrated in
2205+14 a few regional areas.
2206+15 (L) Notwithstanding provisions for advancing capital
2207+16 prior to project energization found in item (vi) of
2208+17 subparagraph (K), the procurement of photovoltaic
2209+18 renewable energy credits under items (i) through (vi) of
2210+19 subparagraph (K) of this paragraph (1) shall otherwise be
2211+20 subject to the following contract and payment terms:
2212+21 (i) (Blank).
2213+22 (ii) For those renewable energy credits that
2214+23 qualify and are procured under item (i) of
2215+24 subparagraph (K) of this paragraph (1), and any
2216+25 similar category projects that are procured under item
2217+26 (vi) of subparagraph (K) of this paragraph (1) that
2218+
2219+
2220+
2221+
2222+
2223+ SB1699 Enrolled - 62 - LRB103 27684 AMQ 54061 b
2224+
2225+
2226+SB1699 Enrolled- 63 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 63 - LRB103 27684 AMQ 54061 b
2227+ SB1699 Enrolled - 63 - LRB103 27684 AMQ 54061 b
2228+1 qualify and are procured under item (vi), the contract
2229+2 length shall be 15 years. The renewable energy credit
2230+3 delivery contract value shall be paid in full, based
2231+4 on the estimated generation during the first 15 years
2232+5 of operation, by the contracting utilities at the time
2233+6 that the facility producing the renewable energy
2234+7 credits is interconnected at the distribution system
2235+8 level of the utility and verified as energized and
2236+9 compliant by the Program Administrator. The electric
2237+10 utility shall receive and retire all renewable energy
2238+11 credits generated by the project for the first 15
2239+12 years of operation. Renewable energy credits generated
2240+13 by the project thereafter shall not be transferred
2241+14 under the renewable energy credit delivery contract
2242+15 with the counterparty electric utility.
2243+16 (iii) For those renewable energy credits that
2244+17 qualify and are procured under item (ii) and (v) of
2245+18 subparagraph (K) of this paragraph (1) and any like
2246+19 projects similar category that qualify and are
2247+20 procured under item (vi), the contract length shall be
2248+21 15 years. 15% of the renewable energy credit delivery
2249+22 contract value, based on the estimated generation
2250+23 during the first 15 years of operation, shall be paid
2251+24 by the contracting utilities at the time that the
2252+25 facility producing the renewable energy credits is
2253+26 interconnected at the distribution system level of the
2254+
2255+
2256+
2257+
2258+
2259+ SB1699 Enrolled - 63 - LRB103 27684 AMQ 54061 b
2260+
2261+
2262+SB1699 Enrolled- 64 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 64 - LRB103 27684 AMQ 54061 b
2263+ SB1699 Enrolled - 64 - LRB103 27684 AMQ 54061 b
2264+1 utility and verified as energized and compliant by the
2265+2 Program Administrator. The remaining portion shall be
2266+3 paid ratably over the subsequent 6-year period. The
2267+4 electric utility shall receive and retire all
2268+5 renewable energy credits generated by the project for
2269+6 the first 15 years of operation. Renewable energy
2270+7 credits generated by the project thereafter shall not
2271+8 be transferred under the renewable energy credit
2272+9 delivery contract with the counterparty electric
2273+10 utility.
2274+11 (iv) For those renewable energy credits that
2275+12 qualify and are procured under items (iii) and (iv) of
2276+13 subparagraph (K) of this paragraph (1), and any like
2277+14 projects that qualify and are procured under item
2278+15 (vi), the renewable energy credit delivery contract
2279+16 length shall be 20 years and shall be paid over the
2280+17 delivery term, not to exceed during each delivery year
2281+18 the contract price multiplied by the estimated annual
2282+19 renewable energy credit generation amount. If
2283+20 generation of renewable energy credits during a
2284+21 delivery year exceeds the estimated annual generation
2285+22 amount, the excess renewable energy credits shall be
2286+23 carried forward to future delivery years and shall not
2287+24 expire during the delivery term. If generation of
2288+25 renewable energy credits during a delivery year,
2289+26 including carried forward excess renewable energy
2290+
2291+
2292+
2293+
2294+
2295+ SB1699 Enrolled - 64 - LRB103 27684 AMQ 54061 b
2296+
2297+
2298+SB1699 Enrolled- 65 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 65 - LRB103 27684 AMQ 54061 b
2299+ SB1699 Enrolled - 65 - LRB103 27684 AMQ 54061 b
2300+1 credits, if any, is less than the estimated annual
2301+2 generation amount, payments during such delivery year
2302+3 will not exceed the quantity generated plus the
2303+4 quantity carried forward multiplied by the contract
2304+5 price. The electric utility shall receive all
2305+6 renewable energy credits generated by the project
2306+7 during the first 20 years of operation and retire all
2307+8 renewable energy credits paid for under this item (iv)
2308+9 and return at the end of the delivery term all
2309+10 renewable energy credits that were not paid for.
2310+11 Renewable energy credits generated by the project
2311+12 thereafter shall not be transferred under the
2312+13 renewable energy credit delivery contract with the
2313+14 counterparty electric utility. Notwithstanding the
2314+15 preceding, for those projects participating under item
2315+16 (iii) of subparagraph (K), the contract price for a
2316+17 delivery year shall be based on subscription levels as
2317+18 measured on the higher of the first business day of the
2318+19 delivery year or the first business day 6 months after
2319+20 the first business day of the delivery year.
2320+21 Subscription of 90% of nameplate capacity or greater
2321+22 shall be deemed to be fully subscribed for the
2322+23 purposes of this item (iv). For projects receiving a
2323+24 20-year delivery contract, REC prices shall be
2324+25 adjusted downward for consistency with the incentive
2325+26 levels previously determined to be necessary to
2326+
2327+
2328+
2329+
2330+
2331+ SB1699 Enrolled - 65 - LRB103 27684 AMQ 54061 b
2332+
2333+
2334+SB1699 Enrolled- 66 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 66 - LRB103 27684 AMQ 54061 b
2335+ SB1699 Enrolled - 66 - LRB103 27684 AMQ 54061 b
2336+1 support projects under 15-year delivery contracts,
2337+2 taking into consideration any additional new
2338+3 requirements placed on the projects, including, but
2339+4 not limited to, labor standards.
2340+5 (v) Each contract shall include provisions to
2341+6 ensure the delivery of the estimated quantity of
2342+7 renewable energy credits and ongoing collateral
2343+8 requirements and other provisions deemed appropriate
2344+9 by the Agency.
2345+10 (vi) The utility shall be the counterparty to the
2346+11 contracts executed under this subparagraph (L) that
2347+12 are approved by the Commission under the process
2348+13 described in Section 16-111.5 of the Public Utilities
2349+14 Act. No contract shall be executed for an amount that
2350+15 is less than one renewable energy credit per year.
2351+16 (vii) If, at any time, approved applications for
2352+17 the Adjustable Block program exceed funds collected by
2353+18 the electric utility or would cause the Agency to
2354+19 exceed the limitation described in subparagraph (E) of
2355+20 this paragraph (1) on the amount of renewable energy
2356+21 resources that may be procured, then the Agency may
2357+22 consider future uncommitted funds to be reserved for
2358+23 these contracts on a first-come, first-served basis.
2359+24 (viii) Nothing in this Section shall require the
2360+25 utility to advance any payment or pay any amounts that
2361+26 exceed the actual amount of revenues anticipated to be
2362+
2363+
2364+
2365+
2366+
2367+ SB1699 Enrolled - 66 - LRB103 27684 AMQ 54061 b
2368+
2369+
2370+SB1699 Enrolled- 67 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 67 - LRB103 27684 AMQ 54061 b
2371+ SB1699 Enrolled - 67 - LRB103 27684 AMQ 54061 b
2372+1 collected by the utility under paragraph (6) of this
2373+2 subsection (c) and subsection (k) of Section 16-108 of
2374+3 the Public Utilities Act inclusive of eligible funds
2375+4 collected in prior years and alternative compliance
2376+5 payments for use by the utility, and contracts
2377+6 executed under this Section shall expressly
2378+7 incorporate this limitation.
2379+8 (ix) Notwithstanding other requirements of this
2380+9 subparagraph (L), no modification shall be required to
2381+10 Adjustable Block program contracts if they were
2382+11 already executed prior to the establishment, approval,
2383+12 and implementation of new contract forms as a result
2384+13 of this amendatory Act of the 102nd General Assembly.
2385+14 (x) Contracts may be assignable, but only to
2386+15 entities first deemed by the Agency to have met
2387+16 program terms and requirements applicable to direct
2388+17 program participation. In developing contracts for the
2389+18 delivery of renewable energy credits, the Agency shall
2390+19 be permitted to establish fees applicable to each
2391+20 contract assignment.
2392+21 (M) The Agency shall be authorized to retain one or
2393+22 more experts or expert consulting firms to develop,
2394+23 administer, implement, operate, and evaluate the
2395+24 Adjustable Block program described in subparagraph (K) of
2396+25 this paragraph (1), and the Agency shall retain the
2397+26 consultant or consultants in the same manner, to the
2398+
2399+
2400+
2401+
2402+
2403+ SB1699 Enrolled - 67 - LRB103 27684 AMQ 54061 b
2404+
2405+
2406+SB1699 Enrolled- 68 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 68 - LRB103 27684 AMQ 54061 b
2407+ SB1699 Enrolled - 68 - LRB103 27684 AMQ 54061 b
2408+1 extent practicable, as the Agency retains others to
2409+2 administer provisions of this Act, including, but not
2410+3 limited to, the procurement administrator. The selection
2411+4 of experts and expert consulting firms and the procurement
2412+5 process described in this subparagraph (M) are exempt from
2413+6 the requirements of Section 20-10 of the Illinois
2414+7 Procurement Code, under Section 20-10 of that Code. The
2415+8 Agency shall strive to minimize administrative expenses in
2416+9 the implementation of the Adjustable Block program.
2417+10 The Program Administrator may charge application fees
2418+11 to participating firms to cover the cost of program
2419+12 administration. Any application fee amounts shall
2420+13 initially be determined through the long-term renewable
2421+14 resources procurement plan, and modifications to any
2422+15 application fee that deviate more than 25% from the
2423+16 Commission's approved value must be approved by the
2424+17 Commission as a long-term plan revision under Section
2425+18 16-111.5 of the Public Utilities Act. The Agency shall
2426+19 consider stakeholder feedback when making adjustments to
2427+20 application fees and shall notify stakeholders in advance
2428+21 of any planned changes.
2429+22 In addition to covering the costs of program
2430+23 administration, the Agency, in conjunction with its
2431+24 Program Administrator, may also use the proceeds of such
2432+25 fees charged to participating firms to support public
2433+26 education and ongoing regional and national coordination
2434+
2435+
2436+
2437+
2438+
2439+ SB1699 Enrolled - 68 - LRB103 27684 AMQ 54061 b
2440+
2441+
2442+SB1699 Enrolled- 69 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 69 - LRB103 27684 AMQ 54061 b
2443+ SB1699 Enrolled - 69 - LRB103 27684 AMQ 54061 b
2444+1 with nonprofit organizations, public bodies, and others
2445+2 engaged in the implementation of renewable energy
2446+3 incentive programs or similar initiatives. This work may
2447+4 include developing papers and reports, hosting regional
2448+5 and national conferences, and other work deemed necessary
2449+6 by the Agency to position the State of Illinois as a
2450+7 national leader in renewable energy incentive program
2451+8 development and administration.
2452+9 The Agency and its consultant or consultants shall
2453+10 monitor block activity, share program activity with
2454+11 stakeholders and conduct quarterly meetings to discuss
2455+12 program activity and market conditions. If necessary, the
2456+13 Agency may make prospective administrative adjustments to
2457+14 the Adjustable Block program design, such as making
2458+15 adjustments to purchase prices as necessary to achieve the
2459+16 goals of this subsection (c). Program modifications to any
2460+17 block price that do not deviate from the Commission's
2461+18 approved value by more than 10% shall take effect
2462+19 immediately and are not subject to Commission review and
2463+20 approval. Program modifications to any block price that
2464+21 deviate more than 10% from the Commission's approved value
2465+22 must be approved by the Commission as a long-term plan
2466+23 amendment under Section 16-111.5 of the Public Utilities
2467+24 Act. The Agency shall consider stakeholder feedback when
2468+25 making adjustments to the Adjustable Block design and
2469+26 shall notify stakeholders in advance of any planned
2470+
2471+
2472+
2473+
2474+
2475+ SB1699 Enrolled - 69 - LRB103 27684 AMQ 54061 b
2476+
2477+
2478+SB1699 Enrolled- 70 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 70 - LRB103 27684 AMQ 54061 b
2479+ SB1699 Enrolled - 70 - LRB103 27684 AMQ 54061 b
2480+1 changes.
2481+2 The Agency and its program administrators for both the
2482+3 Adjustable Block program and the Illinois Solar for All
2483+4 Program, consistent with the requirements of this
2484+5 subsection (c) and subsection (b) of Section 1-56 of this
2485+6 Act, shall propose the Adjustable Block program terms,
2486+7 conditions, and requirements, including the prices to be
2487+8 paid for renewable energy credits, where applicable, and
2488+9 requirements applicable to participating entities and
2489+10 project applications, through the development, review, and
2490+11 approval of the Agency's long-term renewable resources
2491+12 procurement plan described in this subsection (c) and
2492+13 paragraph (5) of subsection (b) of Section 16-111.5 of the
2493+14 Public Utilities Act. Terms, conditions, and requirements
2494+15 for program participation shall include the following:
2495+16 (i) The Agency shall establish a registration
2496+17 process for entities seeking to qualify for
2497+18 program-administered incentive funding and establish
2498+19 baseline qualifications for vendor approval. The
2499+20 Agency must maintain a list of approved entities on
2500+21 each program's website, and may revoke a vendor's
2501+22 ability to receive program-administered incentive
2502+23 funding status upon a determination that the vendor
2503+24 failed to comply with contract terms, the law, or
2504+25 other program requirements.
2505+26 (ii) The Agency shall establish program
2506+
2507+
2508+
2509+
2510+
2511+ SB1699 Enrolled - 70 - LRB103 27684 AMQ 54061 b
2512+
2513+
2514+SB1699 Enrolled- 71 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 71 - LRB103 27684 AMQ 54061 b
2515+ SB1699 Enrolled - 71 - LRB103 27684 AMQ 54061 b
2516+1 requirements and minimum contract terms to ensure
2517+2 projects are properly installed and produce their
2518+3 expected amounts of energy. Program requirements may
2519+4 include on-site inspections and photo documentation of
2520+5 projects under construction. The Agency may require
2521+6 repairs, alterations, or additions to remedy any
2522+7 material deficiencies discovered. Vendors who have a
2523+8 disproportionately high number of deficient systems
2524+9 may lose their eligibility to continue to receive
2525+10 State-administered incentive funding through Agency
2526+11 programs and procurements.
2527+12 (iii) To discourage deceptive marketing or other
2528+13 bad faith business practices, the Agency may require
2529+14 direct program participants, including agents
2530+15 operating on their behalf, to provide standardized
2531+16 disclosures to a customer prior to that customer's
2532+17 execution of a contract for the development of a
2533+18 distributed generation system or a subscription to a
2534+19 community solar project.
2535+20 (iv) The Agency shall establish one or multiple
2536+21 Consumer Complaints Centers to accept complaints
2537+22 regarding businesses that participate in, or otherwise
2538+23 benefit from, State-administered incentive funding
2539+24 through Agency-administered programs. The Agency shall
2540+25 maintain a public database of complaints with any
2541+26 confidential or particularly sensitive information
2542+
2543+
2544+
2545+
2546+
2547+ SB1699 Enrolled - 71 - LRB103 27684 AMQ 54061 b
2548+
2549+
2550+SB1699 Enrolled- 72 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 72 - LRB103 27684 AMQ 54061 b
2551+ SB1699 Enrolled - 72 - LRB103 27684 AMQ 54061 b
2552+1 redacted from public entries.
2553+2 (v) Through a filing in the proceeding for the
2554+3 approval of its long-term renewable energy resources
2555+4 procurement plan, the Agency shall provide an annual
2556+5 written report to the Illinois Commerce Commission
2557+6 documenting the frequency and nature of complaints and
2558+7 any enforcement actions taken in response to those
2559+8 complaints.
2560+9 (vi) The Agency shall schedule regular meetings
2561+10 with representatives of the Office of the Attorney
2562+11 General, the Illinois Commerce Commission, consumer
2563+12 protection groups, and other interested stakeholders
2564+13 to share relevant information about consumer
2565+14 protection, project compliance, and complaints
2566+15 received.
2567+16 (vii) To the extent that complaints received
2568+17 implicate the jurisdiction of the Office of the
2569+18 Attorney General, the Illinois Commerce Commission, or
2570+19 local, State, or federal law enforcement, the Agency
2571+20 shall also refer complaints to those entities as
2572+21 appropriate.
2573+22 (N) The Agency shall establish the terms, conditions,
2574+23 and program requirements for photovoltaic community
2575+24 renewable generation projects with a goal to expand access
2576+25 to a broader group of energy consumers, to ensure robust
2577+26 participation opportunities for residential and small
2578+
2579+
2580+
2581+
2582+
2583+ SB1699 Enrolled - 72 - LRB103 27684 AMQ 54061 b
2584+
2585+
2586+SB1699 Enrolled- 73 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 73 - LRB103 27684 AMQ 54061 b
2587+ SB1699 Enrolled - 73 - LRB103 27684 AMQ 54061 b
2588+1 commercial customers and those who cannot install
2589+2 renewable energy on their own properties. Subject to
2590+3 reasonable limitations, any plan approved by the
2591+4 Commission shall allow subscriptions to community
2592+5 renewable generation projects to be portable and
2593+6 transferable. For purposes of this subparagraph (N),
2594+7 "portable" means that subscriptions may be retained by the
2595+8 subscriber even if the subscriber relocates or changes its
2596+9 address within the same utility service territory; and
2597+10 "transferable" means that a subscriber may assign or sell
2598+11 subscriptions to another person within the same utility
2599+12 service territory.
2600+13 Through the development of its long-term renewable
2601+14 resources procurement plan, the Agency may consider
2602+15 whether community renewable generation projects utilizing
2603+16 technologies other than photovoltaics should be supported
2604+17 through State-administered incentive funding, and may
2605+18 issue requests for information to gauge market demand.
2606+19 Electric utilities shall provide a monetary credit to
2607+20 a subscriber's subsequent bill for service for the
2608+21 proportional output of a community renewable generation
2609+22 project attributable to that subscriber as specified in
2610+23 Section 16-107.5 of the Public Utilities Act.
2611+24 The Agency shall purchase renewable energy credits
2612+25 from subscribed shares of photovoltaic community renewable
2613+26 generation projects through the Adjustable Block program
2614+
2615+
2616+
2617+
2618+
2619+ SB1699 Enrolled - 73 - LRB103 27684 AMQ 54061 b
2620+
2621+
2622+SB1699 Enrolled- 74 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 74 - LRB103 27684 AMQ 54061 b
2623+ SB1699 Enrolled - 74 - LRB103 27684 AMQ 54061 b
2624+1 described in subparagraph (K) of this paragraph (1) or
2625+2 through the Illinois Solar for All Program described in
2626+3 Section 1-56 of this Act. The electric utility shall
2627+4 purchase any unsubscribed energy from community renewable
2628+5 generation projects that are Qualifying Facilities ("QF")
2629+6 under the electric utility's tariff for purchasing the
2630+7 output from QFs under Public Utilities Regulatory Policies
2631+8 Act of 1978.
2632+9 The owners of and any subscribers to a community
2633+10 renewable generation project shall not be considered
2634+11 public utilities or alternative retail electricity
2635+12 suppliers under the Public Utilities Act solely as a
2636+13 result of their interest in or subscription to a community
2637+14 renewable generation project and shall not be required to
2638+15 become an alternative retail electric supplier by
2639+16 participating in a community renewable generation project
2640+17 with a public utility.
2641+18 (O) For the delivery year beginning June 1, 2018, the
2642+19 long-term renewable resources procurement plan required by
2643+20 this subsection (c) shall provide for the Agency to
2644+21 procure contracts to continue offering the Illinois Solar
2645+22 for All Program described in subsection (b) of Section
2646+23 1-56 of this Act, and the contracts approved by the
2647+24 Commission shall be executed by the utilities that are
2648+25 subject to this subsection (c). The long-term renewable
2649+26 resources procurement plan shall allocate up to
2650+
2651+
2652+
2653+
2654+
2655+ SB1699 Enrolled - 74 - LRB103 27684 AMQ 54061 b
2656+
2657+
2658+SB1699 Enrolled- 75 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 75 - LRB103 27684 AMQ 54061 b
2659+ SB1699 Enrolled - 75 - LRB103 27684 AMQ 54061 b
2660+1 $50,000,000 per delivery year to fund the programs, and
2661+2 the plan shall determine the amount of funding to be
2662+3 apportioned to the programs identified in subsection (b)
2663+4 of Section 1-56 of this Act; provided that for the
2664+5 delivery years beginning June 1, 2021, June 1, 2022, and
2665+6 June 1, 2023, the long-term renewable resources
2666+7 procurement plan may average the annual budgets over a
2667+8 3-year period to account for program ramp-up. For the
2668+9 delivery years beginning June 1, 2021, June 1, 2024, June
2669+10 1, 2027, and June 1, 2030 and additional $10,000,000 shall
2670+11 be provided to the Department of Commerce and Economic
2671+12 Opportunity to implement the workforce development
2672+13 programs and reporting as outlined in Section 16-108.12 of
2673+14 the Public Utilities Act. In making the determinations
2674+15 required under this subparagraph (O), the Commission shall
2675+16 consider the experience and performance under the programs
2676+17 and any evaluation reports. The Commission shall also
2677+18 provide for an independent evaluation of those programs on
2678+19 a periodic basis that are funded under this subparagraph
2679+20 (O).
2680+21 (P) All programs and procurements under this
2681+22 subsection (c) shall be designed to encourage
2682+23 participating projects to use a diverse and equitable
2683+24 workforce and a diverse set of contractors, including
2684+25 minority-owned businesses, disadvantaged businesses,
2685+26 trade unions, graduates of any workforce training programs
2686+
2687+
2688+
2689+
2690+
2691+ SB1699 Enrolled - 75 - LRB103 27684 AMQ 54061 b
2692+
2693+
2694+SB1699 Enrolled- 76 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 76 - LRB103 27684 AMQ 54061 b
2695+ SB1699 Enrolled - 76 - LRB103 27684 AMQ 54061 b
2696+1 administered under this Act, and small businesses.
2697+2 The Agency shall develop a method to optimize
2698+3 procurement of renewable energy credits from proposed
2699+4 utility-scale projects that are located in communities
2700+5 eligible to receive Energy Transition Community Grants
2701+6 pursuant to Section 10-20 of the Energy Community
2702+7 Reinvestment Act. If this requirement conflicts with other
2703+8 provisions of law or the Agency determines that full
2704+9 compliance with the requirements of this subparagraph (P)
2705+10 would be unreasonably costly or administratively
2706+11 impractical, the Agency is to propose alternative
2707+12 approaches to achieve development of renewable energy
2708+13 resources in communities eligible to receive Energy
2709+14 Transition Community Grants pursuant to Section 10-20 of
2710+15 the Energy Community Reinvestment Act or seek an exemption
2711+16 from this requirement from the Commission.
2712+17 (Q) Each facility listed in subitems (i) through
2713+18 (viii) of item (1) of this subparagraph (Q) for which a
2714+19 renewable energy credit delivery contract is signed after
2715+20 the effective date of this amendatory Act of the 102nd
2716+21 General Assembly is subject to the following requirements
2717+22 through the Agency's long-term renewable resources
2718+23 procurement plan:
2719+24 (1) Each facility shall be subject to the
2720+25 prevailing wage requirements included in the
2721+26 Prevailing Wage Act. The Agency shall require
2722+
2723+
2724+
2725+
2726+
2727+ SB1699 Enrolled - 76 - LRB103 27684 AMQ 54061 b
2728+
2729+
2730+SB1699 Enrolled- 77 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 77 - LRB103 27684 AMQ 54061 b
2731+ SB1699 Enrolled - 77 - LRB103 27684 AMQ 54061 b
2732+1 verification that all construction performed on the
2733+2 facility by the renewable energy credit delivery
2734+3 contract holder, its contractors, or its
2735+4 subcontractors relating to construction of the
2736+5 facility is performed by construction employees
2737+6 receiving an amount for that work equal to or greater
2738+7 than the general prevailing rate, as that term is
2739+8 defined in Section 3 of the Prevailing Wage Act. For
2740+9 purposes of this item (1), "house of worship" means
2741+10 property that is both (1) used exclusively by a
2742+11 religious society or body of persons as a place for
2743+12 religious exercise or religious worship and (2)
2744+13 recognized as exempt from taxation pursuant to Section
2745+14 15-40 of the Property Tax Code. This item (1) shall
2746+15 apply to any the following:
2747+16 (i) all new utility-scale wind projects;
2748+17 (ii) all new utility-scale photovoltaic
2749+18 projects;
2750+19 (iii) all new brownfield photovoltaic
2751+20 projects;
2752+21 (iv) all new photovoltaic community renewable
2753+22 energy facilities that qualify for item (iii) of
2754+23 subparagraph (K) of this paragraph (1);
2755+24 (v) all new community driven community
2756+25 photovoltaic projects that qualify for item (v) of
2757+26 subparagraph (K) of this paragraph (1);
2758+
2759+
2760+
2761+
2762+
2763+ SB1699 Enrolled - 77 - LRB103 27684 AMQ 54061 b
2764+
2765+
2766+SB1699 Enrolled- 78 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 78 - LRB103 27684 AMQ 54061 b
2767+ SB1699 Enrolled - 78 - LRB103 27684 AMQ 54061 b
2768+1 (vi) all new photovoltaic projects on public
2769+2 school land distributed renewable energy
2770+3 generation devices on schools that qualify for
2771+4 item (iv) of subparagraph (K) of this paragraph
2772+5 (1);
2773+6 (vii) all new photovoltaic distributed
2774+7 renewable energy generation devices that (1)
2775+8 qualify for item (i) of subparagraph (K) of this
2776+9 paragraph (1); (2) are not projects that serve
2777+10 single-family or multi-family residential
2778+11 buildings; and (3) are not houses of worship where
2779+12 the aggregate capacity including collocated
2780+13 projects would not exceed 100 kilowatts;
2781+14 (viii) all new photovoltaic distributed
2782+15 renewable energy generation devices that (1)
2783+16 qualify for item (ii) of subparagraph (K) of this
2784+17 paragraph (1); (2) are not projects that serve
2785+18 single-family or multi-family residential
2786+19 buildings; and (3) are not houses of worship where
2787+20 the aggregate capacity including collocated
2788+21 projects would not exceed 100 kilowatts.
2789+22 (2) Renewable energy credits procured from new
2790+23 utility-scale wind projects, new utility-scale solar
2791+24 projects, and new brownfield solar projects pursuant
2792+25 to Agency procurement events occurring after the
2793+26 effective date of this amendatory Act of the 102nd
2794+
2795+
2796+
2797+
2798+
2799+ SB1699 Enrolled - 78 - LRB103 27684 AMQ 54061 b
2800+
2801+
2802+SB1699 Enrolled- 79 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 79 - LRB103 27684 AMQ 54061 b
2803+ SB1699 Enrolled - 79 - LRB103 27684 AMQ 54061 b
2804+1 General Assembly must be from facilities built by
2805+2 general contractors that must enter into a project
2806+3 labor agreement, as defined by this Act, prior to
2807+4 construction. The project labor agreement shall be
2808+5 filed with the Director in accordance with procedures
2809+6 established by the Agency through its long-term
2810+7 renewable resources procurement plan. Any information
2811+8 submitted to the Agency in this item (2) shall be
2812+9 considered commercially sensitive information. At a
2813+10 minimum, the project labor agreement must provide the
2814+11 names, addresses, and occupations of the owner of the
2815+12 plant and the individuals representing the labor
2816+13 organization employees participating in the project
2817+14 labor agreement consistent with the Project Labor
2818+15 Agreements Act. The agreement must also specify the
2819+16 terms and conditions as defined by this Act.
2820+17 (3) It is the intent of this Section to ensure that
2821+18 economic development occurs across Illinois
2822+19 communities, that emerging businesses may grow, and
2823+20 that there is improved access to the clean energy
2824+21 economy by persons who have greater economic burdens
2825+22 to success. The Agency shall take into consideration
2826+23 the unique cost of compliance of this subparagraph (Q)
2827+24 that might be borne by equity eligible contractors,
2828+25 shall include such costs when determining the price of
2829+26 renewable energy credits in the Adjustable Block
2830+
2831+
2832+
2833+
2834+
2835+ SB1699 Enrolled - 79 - LRB103 27684 AMQ 54061 b
2836+
2837+
2838+SB1699 Enrolled- 80 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 80 - LRB103 27684 AMQ 54061 b
2839+ SB1699 Enrolled - 80 - LRB103 27684 AMQ 54061 b
2840+1 program, and shall take such costs into consideration
2841+2 in a nondiscriminatory manner when comparing bids for
2842+3 competitive procurements. The Agency shall consider
2843+4 costs associated with compliance whether in the
2844+5 development, financing, or construction of projects.
2845+6 The Agency shall periodically review the assumptions
2846+7 in these costs and may adjust prices, in compliance
2847+8 with subparagraph (M) of this paragraph (1).
2848+9 (R) In its long-term renewable resources procurement
2849+10 plan, the Agency shall establish a self-direct renewable
2850+11 portfolio standard compliance program for eligible
2851+12 self-direct customers that purchase renewable energy
2852+13 credits from utility-scale wind and solar projects through
2853+14 long-term agreements for purchase of renewable energy
2854+15 credits as described in this Section. Such long-term
2855+16 agreements may include the purchase of energy or other
2856+17 products on a physical or financial basis and may involve
2857+18 an alternative retail electric supplier as defined in
2858+19 Section 16-102 of the Public Utilities Act. This program
2859+20 shall take effect in the delivery year commencing June 1,
2860+21 2023.
2861+22 (1) For the purposes of this subparagraph:
2862+23 "Eligible self-direct customer" means any retail
2863+24 customers of an electric utility that serves 3,000,000
2864+25 or more retail customers in the State and whose total
2865+26 highest 30-minute demand was more than 10,000
2866+
2867+
2868+
2869+
2870+
2871+ SB1699 Enrolled - 80 - LRB103 27684 AMQ 54061 b
2872+
2873+
2874+SB1699 Enrolled- 81 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 81 - LRB103 27684 AMQ 54061 b
2875+ SB1699 Enrolled - 81 - LRB103 27684 AMQ 54061 b
2876+1 kilowatts, or any retail customers of an electric
2877+2 utility that serves less than 3,000,000 retail
2878+3 customers but more than 500,000 retail customers in
2879+4 the State and whose total highest 15-minute demand was
2880+5 more than 10,000 kilowatts.
2881+6 "Retail customer" has the meaning set forth in
2882+7 Section 16-102 of the Public Utilities Act and
2883+8 multiple retail customer accounts under the same
2884+9 corporate parent may aggregate their account demands
2885+10 to meet the 10,000 kilowatt threshold. The criteria
2886+11 for determining whether this subparagraph is
2887+12 applicable to a retail customer shall be based on the
2888+13 12 consecutive billing periods prior to the start of
2889+14 the year in which the application is filed.
2890+15 (2) For renewable energy credits to count toward
2891+16 the self-direct renewable portfolio standard
2892+17 compliance program, they must:
2893+18 (i) qualify as renewable energy credits as
2894+19 defined in Section 1-10 of this Act;
2895+20 (ii) be sourced from one or more renewable
2896+21 energy generating facilities that comply with the
2897+22 geographic requirements as set forth in
2898+23 subparagraph (I) of paragraph (1) of subsection
2899+24 (c) as interpreted through the Agency's long-term
2900+25 renewable resources procurement plan, or, where
2901+26 applicable, the geographic requirements that
2902+
2903+
2904+
2905+
2906+
2907+ SB1699 Enrolled - 81 - LRB103 27684 AMQ 54061 b
2908+
2909+
2910+SB1699 Enrolled- 82 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 82 - LRB103 27684 AMQ 54061 b
2911+ SB1699 Enrolled - 82 - LRB103 27684 AMQ 54061 b
2912+1 governed utility-scale renewable energy credits at
2913+2 the time the eligible self-direct customer entered
2914+3 into the applicable renewable energy credit
2915+4 purchase agreement;
2916+5 (iii) be procured through long-term contracts
2917+6 with term lengths of at least 10 years either
2918+7 directly with the renewable energy generating
2919+8 facility or through a bundled power purchase
2920+9 agreement, a virtual power purchase agreement, an
2921+10 agreement between the renewable generating
2922+11 facility, an alternative retail electric supplier,
2923+12 and the customer, or such other structure as is
2924+13 permissible under this subparagraph (R);
2925+14 (iv) be equivalent in volume to at least 40%
2926+15 of the eligible self-direct customer's usage,
2927+16 determined annually by the eligible self-direct
2928+17 customer's usage during the previous delivery
2929+18 year, measured to the nearest megawatt-hour;
2930+19 (v) be retired by or on behalf of the large
2931+20 energy customer;
2932+21 (vi) be sourced from new utility-scale wind
2933+22 projects or new utility-scale solar projects; and
2934+23 (vii) if the contracts for renewable energy
2935+24 credits are entered into after the effective date
2936+25 of this amendatory Act of the 102nd General
2937+26 Assembly, the new utility-scale wind projects or
2938+
2939+
2940+
2941+
2942+
2943+ SB1699 Enrolled - 82 - LRB103 27684 AMQ 54061 b
2944+
2945+
2946+SB1699 Enrolled- 83 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 83 - LRB103 27684 AMQ 54061 b
2947+ SB1699 Enrolled - 83 - LRB103 27684 AMQ 54061 b
2948+1 new utility-scale solar projects must comply with
2949+2 the requirements established in subparagraphs (P)
2950+3 and (Q) of paragraph (1) of this subsection (c)
2951+4 and subsection (c-10).
2952+5 (3) The self-direct renewable portfolio standard
2953+6 compliance program shall be designed to allow eligible
2954+7 self-direct customers to procure new renewable energy
2955+8 credits from new utility-scale wind projects or new
2956+9 utility-scale photovoltaic projects. The Agency shall
2957+10 annually determine the amount of utility-scale
2958+11 renewable energy credits it will include each year
2959+12 from the self-direct renewable portfolio standard
2960+13 compliance program, subject to receiving qualifying
2961+14 applications. In making this determination, the Agency
2962+15 shall evaluate publicly available analyses and studies
2963+16 of the potential market size for utility-scale
2964+17 renewable energy long-term purchase agreements by
2965+18 commercial and industrial energy customers and make
2966+19 that report publicly available. If demand for
2967+20 participation in the self-direct renewable portfolio
2968+21 standard compliance program exceeds availability, the
2969+22 Agency shall ensure participation is evenly split
2970+23 between commercial and industrial users to the extent
2971+24 there is sufficient demand from both customer classes.
2972+25 Each renewable energy credit procured pursuant to this
2973+26 subparagraph (R) by a self-direct customer shall
2974+
2975+
2976+
2977+
2978+
2979+ SB1699 Enrolled - 83 - LRB103 27684 AMQ 54061 b
2980+
2981+
2982+SB1699 Enrolled- 84 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 84 - LRB103 27684 AMQ 54061 b
2983+ SB1699 Enrolled - 84 - LRB103 27684 AMQ 54061 b
2984+1 reduce the total volume of renewable energy credits
2985+2 the Agency is otherwise required to procure from new
2986+3 utility-scale projects pursuant to subparagraph (C) of
2987+4 paragraph (1) of this subsection (c) on behalf of
2988+5 contracting utilities where the eligible self-direct
2989+6 customer is located. The self-direct customer shall
2990+7 file an annual compliance report with the Agency
2991+8 pursuant to terms established by the Agency through
2992+9 its long-term renewable resources procurement plan to
2993+10 be eligible for participation in this program.
2994+11 Customers must provide the Agency with their most
2995+12 recent electricity billing statements or other
2996+13 information deemed necessary by the Agency to
2997+14 demonstrate they are an eligible self-direct customer.
2998+15 (4) The Commission shall approve a reduction in
2999+16 the volumetric charges collected pursuant to Section
3000+17 16-108 of the Public Utilities Act for approved
3001+18 eligible self-direct customers equivalent to the
3002+19 anticipated cost of renewable energy credit deliveries
3003+20 under contracts for new utility-scale wind and new
3004+21 utility-scale solar entered for each delivery year
3005+22 after the large energy customer begins retiring
3006+23 eligible new utility scale renewable energy credits
3007+24 for self-compliance. The self-direct credit amount
3008+25 shall be determined annually and is equal to the
3009+26 estimated portion of the cost authorized by
3010+
3011+
3012+
3013+
3014+
3015+ SB1699 Enrolled - 84 - LRB103 27684 AMQ 54061 b
3016+
3017+
3018+SB1699 Enrolled- 85 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 85 - LRB103 27684 AMQ 54061 b
3019+ SB1699 Enrolled - 85 - LRB103 27684 AMQ 54061 b
3020+1 subparagraph (E) of paragraph (1) of this subsection
3021+2 (c) that supported the annual procurement of
3022+3 utility-scale renewable energy credits in the prior
3023+4 delivery year using a methodology described in the
3024+5 long-term renewable resources procurement plan,
3025+6 expressed on a per kilowatthour basis, and does not
3026+7 include (i) costs associated with any contracts
3027+8 entered into before the delivery year in which the
3028+9 customer files the initial compliance report to be
3029+10 eligible for participation in the self-direct program,
3030+11 and (ii) costs associated with procuring renewable
3031+12 energy credits through existing and future contracts
3032+13 through the Adjustable Block Program, subsection (c-5)
3033+14 of this Section 1-75, and the Solar for All Program.
3034+15 The Agency shall assist the Commission in determining
3035+16 the current and future costs. The Agency must
3036+17 determine the self-direct credit amount for new and
3037+18 existing eligible self-direct customers and submit
3038+19 this to the Commission in an annual compliance filing.
3039+20 The Commission must approve the self-direct credit
3040+21 amount by June 1, 2023 and June 1 of each delivery year
3041+22 thereafter.
3042+23 (5) Customers described in this subparagraph (R)
3043+24 shall apply, on a form developed by the Agency, to the
3044+25 Agency to be designated as a self-direct eligible
3045+26 customer. Once the Agency determines that a
3046+
3047+
3048+
3049+
3050+
3051+ SB1699 Enrolled - 85 - LRB103 27684 AMQ 54061 b
3052+
3053+
3054+SB1699 Enrolled- 86 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 86 - LRB103 27684 AMQ 54061 b
3055+ SB1699 Enrolled - 86 - LRB103 27684 AMQ 54061 b
3056+1 self-direct customer is eligible for participation in
3057+2 the program, the self-direct customer will remain
3058+3 eligible until the end of the term of the contract.
3059+4 Thereafter, application may be made not less than 12
3060+5 months before the filing date of the long-term
3061+6 renewable resources procurement plan described in this
3062+7 Act. At a minimum, such application shall contain the
3063+8 following:
3064+9 (i) the customer's certification that, at the
3065+10 time of the customer's application, the customer
3066+11 qualifies to be a self-direct eligible customer,
3067+12 including documents demonstrating that
3068+13 qualification;
3069+14 (ii) the customer's certification that the
3070+15 customer has entered into or will enter into by
3071+16 the beginning of the applicable procurement year,
3072+17 one or more bilateral contracts for new wind
3073+18 projects or new photovoltaic projects, including
3074+19 supporting documentation;
3075+20 (iii) certification that the contract or
3076+21 contracts for new renewable energy resources are
3077+22 long-term contracts with term lengths of at least
3078+23 10 years, including supporting documentation;
3079+24 (iv) certification of the quantities of
3080+25 renewable energy credits that the customer will
3081+26 purchase each year under such contract or
3082+
3083+
3084+
3085+
3086+
3087+ SB1699 Enrolled - 86 - LRB103 27684 AMQ 54061 b
3088+
3089+
3090+SB1699 Enrolled- 87 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 87 - LRB103 27684 AMQ 54061 b
3091+ SB1699 Enrolled - 87 - LRB103 27684 AMQ 54061 b
3092+1 contracts, including supporting documentation;
3093+2 (v) proof that the contract is sufficient to
3094+3 produce renewable energy credits to be equivalent
3095+4 in volume to at least 40% of the large energy
3096+5 customer's usage from the previous delivery year,
3097+6 measured to the nearest megawatt-hour; and
3098+7 (vi) certification that the customer intends
3099+8 to maintain the contract for the duration of the
3100+9 length of the contract.
3101+10 (6) If a customer receives the self-direct credit
3102+11 but fails to properly procure and retire renewable
3103+12 energy credits as required under this subparagraph
3104+13 (R), the Commission, on petition from the Agency and
3105+14 after notice and hearing, may direct such customer's
3106+15 utility to recover the cost of the wrongfully received
3107+16 self-direct credits plus interest through an adder to
3108+17 charges assessed pursuant to Section 16-108 of the
3109+18 Public Utilities Act. Self-direct customers who
3110+19 knowingly fail to properly procure and retire
3111+20 renewable energy credits and do not notify the Agency
3112+21 are ineligible for continued participation in the
3113+22 self-direct renewable portfolio standard compliance
3114+23 program.
3115+24 (2) (Blank).
3116+25 (3) (Blank).
3117+26 (4) The electric utility shall retire all renewable
3118+
3119+
3120+
3121+
3122+
3123+ SB1699 Enrolled - 87 - LRB103 27684 AMQ 54061 b
3124+
3125+
3126+SB1699 Enrolled- 88 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 88 - LRB103 27684 AMQ 54061 b
3127+ SB1699 Enrolled - 88 - LRB103 27684 AMQ 54061 b
3128+1 energy credits used to comply with the standard.
3129+2 (5) Beginning with the 2010 delivery year and ending
3130+3 June 1, 2017, an electric utility subject to this
3131+4 subsection (c) shall apply the lesser of the maximum
3132+5 alternative compliance payment rate or the most recent
3133+6 estimated alternative compliance payment rate for its
3134+7 service territory for the corresponding compliance period,
3135+8 established pursuant to subsection (d) of Section 16-115D
3136+9 of the Public Utilities Act to its retail customers that
3137+10 take service pursuant to the electric utility's hourly
3138+11 pricing tariff or tariffs. The electric utility shall
3139+12 retain all amounts collected as a result of the
3140+13 application of the alternative compliance payment rate or
3141+14 rates to such customers, and, beginning in 2011, the
3142+15 utility shall include in the information provided under
3143+16 item (1) of subsection (d) of Section 16-111.5 of the
3144+17 Public Utilities Act the amounts collected under the
3145+18 alternative compliance payment rate or rates for the prior
3146+19 year ending May 31. Notwithstanding any limitation on the
3147+20 procurement of renewable energy resources imposed by item
3148+21 (2) of this subsection (c), the Agency shall increase its
3149+22 spending on the purchase of renewable energy resources to
3150+23 be procured by the electric utility for the next plan year
3151+24 by an amount equal to the amounts collected by the utility
3152+25 under the alternative compliance payment rate or rates in
3153+26 the prior year ending May 31.
3154+
3155+
3156+
3157+
3158+
3159+ SB1699 Enrolled - 88 - LRB103 27684 AMQ 54061 b
3160+
3161+
3162+SB1699 Enrolled- 89 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 89 - LRB103 27684 AMQ 54061 b
3163+ SB1699 Enrolled - 89 - LRB103 27684 AMQ 54061 b
3164+1 (6) The electric utility shall be entitled to recover
3165+2 all of its costs associated with the procurement of
3166+3 renewable energy credits under plans approved under this
3167+4 Section and Section 16-111.5 of the Public Utilities Act.
3168+5 These costs shall include associated reasonable expenses
3169+6 for implementing the procurement programs, including, but
3170+7 not limited to, the costs of administering and evaluating
3171+8 the Adjustable Block program, through an automatic
3172+9 adjustment clause tariff in accordance with subsection (k)
3173+10 of Section 16-108 of the Public Utilities Act.
3174+11 (7) Renewable energy credits procured from new
3175+12 photovoltaic projects or new distributed renewable energy
3176+13 generation devices under this Section after June 1, 2017
3177+14 (the effective date of Public Act 99-906) must be procured
3178+15 from devices installed by a qualified person in compliance
3179+16 with the requirements of Section 16-128A of the Public
3180+17 Utilities Act and any rules or regulations adopted
3181+18 thereunder.
3182+19 In meeting the renewable energy requirements of this
3183+20 subsection (c), to the extent feasible and consistent with
3184+21 State and federal law, the renewable energy credit
3185+22 procurements, Adjustable Block solar program, and
3186+23 community renewable generation program shall provide
3187+24 employment opportunities for all segments of the
3188+25 population and workforce, including minority-owned and
3189+26 female-owned business enterprises, and shall not,
3190+
3191+
3192+
3193+
3194+
3195+ SB1699 Enrolled - 89 - LRB103 27684 AMQ 54061 b
3196+
3197+
3198+SB1699 Enrolled- 90 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 90 - LRB103 27684 AMQ 54061 b
3199+ SB1699 Enrolled - 90 - LRB103 27684 AMQ 54061 b
3200+1 consistent with State and federal law, discriminate based
3201+2 on race or socioeconomic status.
3202+3 (c-5) Procurement of renewable energy credits from new
3203+4 renewable energy facilities installed at or adjacent to the
3204+5 sites of electric generating facilities that burn or burned
3205+6 coal as their primary fuel source.
3206+7 (1) In addition to the procurement of renewable energy
3207+8 credits pursuant to long-term renewable resources
3208+9 procurement plans in accordance with subsection (c) of
3209+10 this Section and Section 16-111.5 of the Public Utilities
3210+11 Act, the Agency shall conduct procurement events in
3211+12 accordance with this subsection (c-5) for the procurement
3212+13 by electric utilities that served more than 300,000 retail
3213+14 customers in this State as of January 1, 2019 of renewable
3214+15 energy credits from new renewable energy facilities to be
3215+16 installed at or adjacent to the sites of electric
3216+17 generating facilities that, as of January 1, 2016, burned
3217+18 coal as their primary fuel source and meet the other
3218+19 criteria specified in this subsection (c-5). For purposes
3219+20 of this subsection (c-5), "new renewable energy facility"
3220+21 means a new utility-scale solar project as defined in this
3221+22 Section 1-75. The renewable energy credits procured
3222+23 pursuant to this subsection (c-5) may be included or
3223+24 counted for purposes of compliance with the amounts of
3224+25 renewable energy credits required to be procured pursuant
3225+26 to subsection (c) of this Section to the extent that there
3226+
3227+
3228+
3229+
3230+
3231+ SB1699 Enrolled - 90 - LRB103 27684 AMQ 54061 b
3232+
3233+
3234+SB1699 Enrolled- 91 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 91 - LRB103 27684 AMQ 54061 b
3235+ SB1699 Enrolled - 91 - LRB103 27684 AMQ 54061 b
3236+1 are otherwise shortfalls in compliance with such
3237+2 requirements. The procurement of renewable energy credits
3238+3 by electric utilities pursuant to this subsection (c-5)
3239+4 shall be funded solely by revenues collected from the Coal
3240+5 to Solar and Energy Storage Initiative Charge provided for
3241+6 in this subsection (c-5) and subsection (i-5) of Section
3242+7 16-108 of the Public Utilities Act, shall not be funded by
3243+8 revenues collected through any of the other funding
3244+9 mechanisms provided for in subsection (c) of this Section,
3245+10 and shall not be subject to the limitation imposed by
3246+11 subsection (c) on charges to retail customers for costs to
3247+12 procure renewable energy resources pursuant to subsection
3248+13 (c), and shall not be subject to any other requirements or
3249+14 limitations of subsection (c).
3250+15 (2) The Agency shall conduct 2 procurement events to
3251+16 select owners of electric generating facilities meeting
3252+17 the eligibility criteria specified in this subsection
3253+18 (c-5) to enter into long-term contracts to sell renewable
3254+19 energy credits to electric utilities serving more than
3255+20 300,000 retail customers in this State as of January 1,
3256+21 2019. The first procurement event shall be conducted no
3257+22 later than March 31, 2022, unless the Agency elects to
3258+23 delay it, until no later than May 1, 2022, due to its
3259+24 overall volume of work, and shall be to select owners of
3260+25 electric generating facilities located in this State and
3261+26 south of federal Interstate Highway 80 that meet the
3262+
3263+
3264+
3265+
3266+
3267+ SB1699 Enrolled - 91 - LRB103 27684 AMQ 54061 b
3268+
3269+
3270+SB1699 Enrolled- 92 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 92 - LRB103 27684 AMQ 54061 b
3271+ SB1699 Enrolled - 92 - LRB103 27684 AMQ 54061 b
3272+1 eligibility criteria specified in this subsection (c-5).
3273+2 The second procurement event shall be conducted no sooner
3274+3 than September 30, 2022 and no later than October 31, 2022
3275+4 and shall be to select owners of electric generating
3276+5 facilities located anywhere in this State that meet the
3277+6 eligibility criteria specified in this subsection (c-5).
3278+7 The Agency shall establish and announce a time period,
3279+8 which shall begin no later than 30 days prior to the
3280+9 scheduled date for the procurement event, during which
3281+10 applicants may submit applications to be selected as
3282+11 suppliers of renewable energy credits pursuant to this
3283+12 subsection (c-5). The eligibility criteria for selection
3284+13 as a supplier of renewable energy credits pursuant to this
3285+14 subsection (c-5) shall be as follows:
3286+15 (A) The applicant owns an electric generating
3287+16 facility located in this State that: (i) as of January
3288+17 1, 2016, burned coal as its primary fuel to generate
3289+18 electricity; and (ii) has, or had prior to retirement,
3290+19 an electric generating capacity of at least 150
3291+20 megawatts. The electric generating facility can be
3292+21 either: (i) retired as of the date of the procurement
3293+22 event; or (ii) still operating as of the date of the
3294+23 procurement event.
3295+24 (B) The applicant is not (i) an electric
3296+25 cooperative as defined in Section 3-119 of the Public
3297+26 Utilities Act, or (ii) an entity described in
3298+
3299+
3300+
3301+
3302+
3303+ SB1699 Enrolled - 92 - LRB103 27684 AMQ 54061 b
3304+
3305+
3306+SB1699 Enrolled- 93 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 93 - LRB103 27684 AMQ 54061 b
3307+ SB1699 Enrolled - 93 - LRB103 27684 AMQ 54061 b
3308+1 subsection (b)(1) of Section 3-105 of the Public
3309+2 Utilities Act, or an association or consortium of or
3310+3 an entity owned by entities described in (i) or (ii);
3311+4 and the coal-fueled electric generating facility was
3312+5 at one time owned, in whole or in part, by a public
3313+6 utility as defined in Section 3-105 of the Public
3314+7 Utilities Act.
3315+8 (C) If participating in the first procurement
3316+9 event, the applicant proposes and commits to construct
3317+10 and operate, at the site, and if necessary for
3318+11 sufficient space on property adjacent to the existing
3319+12 property, at which the electric generating facility
3320+13 identified in paragraph (A) is located: (i) a new
3321+14 renewable energy facility of at least 20 megawatts but
3322+15 no more than 100 megawatts of electric generating
3323+16 capacity, and (ii) an energy storage facility having a
3324+17 storage capacity equal to at least 2 megawatts and at
3325+18 most 10 megawatts. If participating in the second
3326+19 procurement event, the applicant proposes and commits
3327+20 to construct and operate, at the site, and if
3328+21 necessary for sufficient space on property adjacent to
3329+22 the existing property, at which the electric
3330+23 generating facility identified in paragraph (A) is
3331+24 located: (i) a new renewable energy facility of at
3332+25 least 5 megawatts but no more than 20 megawatts of
3333+26 electric generating capacity, and (ii) an energy
3334+
3335+
3336+
3337+
3338+
3339+ SB1699 Enrolled - 93 - LRB103 27684 AMQ 54061 b
3340+
3341+
3342+SB1699 Enrolled- 94 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 94 - LRB103 27684 AMQ 54061 b
3343+ SB1699 Enrolled - 94 - LRB103 27684 AMQ 54061 b
3344+1 storage facility having a storage capacity equal to at
3345+2 least 0.5 megawatts and at most one megawatt.
3346+3 (D) The applicant agrees that the new renewable
3347+4 energy facility and the energy storage facility will
3348+5 be constructed or installed by a qualified entity or
3349+6 entities in compliance with the requirements of
3350+7 subsection (g) of Section 16-128A of the Public
3351+8 Utilities Act and any rules adopted thereunder.
3352+9 (E) The applicant agrees that personnel operating
3353+10 the new renewable energy facility and the energy
3354+11 storage facility will have the requisite skills,
3355+12 knowledge, training, experience, and competence, which
3356+13 may be demonstrated by completion or current
3357+14 participation and ultimate completion by employees of
3358+15 an accredited or otherwise recognized apprenticeship
3359+16 program for the employee's particular craft, trade, or
3360+17 skill, including through training and education
3361+18 courses and opportunities offered by the owner to
3362+19 employees of the coal-fueled electric generating
3363+20 facility or by previous employment experience
3364+21 performing the employee's particular work skill or
3365+22 function.
3366+23 (F) The applicant commits that not less than the
3367+24 prevailing wage, as determined pursuant to the
3368+25 Prevailing Wage Act, will be paid to the applicant's
3369+26 employees engaged in construction activities
3370+
3371+
3372+
3373+
3374+
3375+ SB1699 Enrolled - 94 - LRB103 27684 AMQ 54061 b
3376+
3377+
3378+SB1699 Enrolled- 95 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 95 - LRB103 27684 AMQ 54061 b
3379+ SB1699 Enrolled - 95 - LRB103 27684 AMQ 54061 b
3380+1 associated with the new renewable energy facility and
3381+2 the new energy storage facility and to the employees
3382+3 of applicant's contractors engaged in construction
3383+4 activities associated with the new renewable energy
3384+5 facility and the new energy storage facility, and
3385+6 that, on or before the commercial operation date of
3386+7 the new renewable energy facility, the applicant shall
3387+8 file a report with the Agency certifying that the
3388+9 requirements of this subparagraph (F) have been met.
3389+10 (G) The applicant commits that if selected, it
3390+11 will negotiate a project labor agreement for the
3391+12 construction of the new renewable energy facility and
3392+13 associated energy storage facility that includes
3393+14 provisions requiring the parties to the agreement to
3394+15 work together to establish diversity threshold
3395+16 requirements and to ensure best efforts to meet
3396+17 diversity targets, improve diversity at the applicable
3397+18 job site, create diverse apprenticeship opportunities,
3398+19 and create opportunities to employ former coal-fired
3399+20 power plant workers.
3400+21 (H) The applicant commits to enter into a contract
3401+22 or contracts for the applicable duration to provide
3402+23 specified numbers of renewable energy credits each
3403+24 year from the new renewable energy facility to
3404+25 electric utilities that served more than 300,000
3405+26 retail customers in this State as of January 1, 2019,
3406+
3407+
3408+
3409+
3410+
3411+ SB1699 Enrolled - 95 - LRB103 27684 AMQ 54061 b
3412+
3413+
3414+SB1699 Enrolled- 96 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 96 - LRB103 27684 AMQ 54061 b
3415+ SB1699 Enrolled - 96 - LRB103 27684 AMQ 54061 b
3416+1 at a price of $30 per renewable energy credit. The
3417+2 price per renewable energy credit shall be fixed at
3418+3 $30 for the applicable duration and the renewable
3419+4 energy credits shall not be indexed renewable energy
3420+5 credits as provided for in item (v) of subparagraph
3421+6 (G) of paragraph (1) of subsection (c) of Section 1-75
3422+7 of this Act. The applicable duration of each contract
3423+8 shall be 20 years, unless the applicant is physically
3424+9 interconnected to the PJM Interconnection, LLC
3425+10 transmission grid and had a generating capacity of at
3426+11 least 1,200 megawatts as of January 1, 2021, in which
3427+12 case the applicable duration of the contract shall be
3428+13 15 years.
3429+14 (I) The applicant's application is certified by an
3430+15 officer of the applicant and by an officer of the
3431+16 applicant's ultimate parent company, if any.
3432+17 (3) An applicant may submit applications to contract
3433+18 to supply renewable energy credits from more than one new
3434+19 renewable energy facility to be constructed at or adjacent
3435+20 to one or more qualifying electric generating facilities
3436+21 owned by the applicant. The Agency may select new
3437+22 renewable energy facilities to be located at or adjacent
3438+23 to the sites of more than one qualifying electric
3439+24 generation facility owned by an applicant to contract with
3440+25 electric utilities to supply renewable energy credits from
3441+26 such facilities.
3442+
3443+
3444+
3445+
3446+
3447+ SB1699 Enrolled - 96 - LRB103 27684 AMQ 54061 b
3448+
3449+
3450+SB1699 Enrolled- 97 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 97 - LRB103 27684 AMQ 54061 b
3451+ SB1699 Enrolled - 97 - LRB103 27684 AMQ 54061 b
3452+1 (4) The Agency shall assess fees to each applicant to
3453+2 recover the Agency's costs incurred in receiving and
3454+3 evaluating applications, conducting the procurement event,
3455+4 developing contracts for sale, delivery and purchase of
3456+5 renewable energy credits, and monitoring the
3457+6 administration of such contracts, as provided for in this
3458+7 subsection (c-5), including fees paid to a procurement
3459+8 administrator retained by the Agency for one or more of
3460+9 these purposes.
3461+10 (5) The Agency shall select the applicants and the new
3462+11 renewable energy facilities to contract with electric
3463+12 utilities to supply renewable energy credits in accordance
3464+13 with this subsection (c-5). In the first procurement
3465+14 event, the Agency shall select applicants and new
3466+15 renewable energy facilities to supply renewable energy
3467+16 credits, at a price of $30 per renewable energy credit,
3468+17 aggregating to no less than 400,000 renewable energy
3469+18 credits per year for the applicable duration, assuming
3470+19 sufficient qualifying applications to supply, in the
3471+20 aggregate, at least that amount of renewable energy
3472+21 credits per year; and not more than 580,000 renewable
3473+22 energy credits per year for the applicable duration. In
3474+23 the second procurement event, the Agency shall select
3475+24 applicants and new renewable energy facilities to supply
3476+25 renewable energy credits, at a price of $30 per renewable
3477+26 energy credit, aggregating to no more than 625,000
3478+
3479+
3480+
3481+
3482+
3483+ SB1699 Enrolled - 97 - LRB103 27684 AMQ 54061 b
3484+
3485+
3486+SB1699 Enrolled- 98 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 98 - LRB103 27684 AMQ 54061 b
3487+ SB1699 Enrolled - 98 - LRB103 27684 AMQ 54061 b
3488+1 renewable energy credits per year less the amount of
3489+2 renewable energy credits each year contracted for as a
3490+3 result of the first procurement event, for the applicable
3491+4 durations. The number of renewable energy credits to be
3492+5 procured as specified in this paragraph (5) shall not be
3493+6 reduced based on renewable energy credits procured in the
3494+7 self-direct renewable energy credit compliance program
3495+8 established pursuant to subparagraph (R) of paragraph (1)
3496+9 of subsection (c) of Section 1-75.
3497+10 (6) The obligation to purchase renewable energy
3498+11 credits from the applicants and their new renewable energy
3499+12 facilities selected by the Agency shall be allocated to
3500+13 the electric utilities based on their respective
3501+14 percentages of kilowatthours delivered to delivery
3502+15 services customers to the aggregate kilowatthour
3503+16 deliveries by the electric utilities to delivery services
3504+17 customers for the year ended December 31, 2021. In order
3505+18 to achieve these allocation percentages between or among
3506+19 the electric utilities, the Agency shall require each
3507+20 applicant that is selected in the procurement event to
3508+21 enter into a contract with each electric utility for the
3509+22 sale and purchase of renewable energy credits from each
3510+23 new renewable energy facility to be constructed and
3511+24 operated by the applicant, with the sale and purchase
3512+25 obligations under the contracts to aggregate to the total
3513+26 number of renewable energy credits per year to be supplied
3514+
3515+
3516+
3517+
3518+
3519+ SB1699 Enrolled - 98 - LRB103 27684 AMQ 54061 b
3520+
3521+
3522+SB1699 Enrolled- 99 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 99 - LRB103 27684 AMQ 54061 b
3523+ SB1699 Enrolled - 99 - LRB103 27684 AMQ 54061 b
3524+1 by the applicant from the new renewable energy facility.
3525+2 (7) The Agency shall submit its proposed selection of
3526+3 applicants, new renewable energy facilities to be
3527+4 constructed, and renewable energy credit amounts for each
3528+5 procurement event to the Commission for approval. The
3529+6 Commission shall, within 2 business days after receipt of
3530+7 the Agency's proposed selections, approve the proposed
3531+8 selections if it determines that the applicants and the
3532+9 new renewable energy facilities to be constructed meet the
3533+10 selection criteria set forth in this subsection (c-5) and
3534+11 that the Agency seeks approval for contracts of applicable
3535+12 durations aggregating to no more than the maximum amount
3536+13 of renewable energy credits per year authorized by this
3537+14 subsection (c-5) for the procurement event, at a price of
3538+15 $30 per renewable energy credit.
3539+16 (8) The Agency, in conjunction with its procurement
3540+17 administrator if one is retained, the electric utilities,
3541+18 and potential applicants for contracts to produce and
3542+19 supply renewable energy credits pursuant to this
3543+20 subsection (c-5), shall develop a standard form contract
3544+21 for the sale, delivery and purchase of renewable energy
3545+22 credits pursuant to this subsection (c-5). Each contract
3546+23 resulting from the first procurement event shall allow for
3547+24 a commercial operation date for the new renewable energy
3548+25 facility of either June 1, 2023 or June 1, 2024, with such
3549+26 dates subject to adjustment as provided in this paragraph.
3550+
3551+
3552+
3553+
3554+
3555+ SB1699 Enrolled - 99 - LRB103 27684 AMQ 54061 b
3556+
3557+
3558+SB1699 Enrolled- 100 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 100 - LRB103 27684 AMQ 54061 b
3559+ SB1699 Enrolled - 100 - LRB103 27684 AMQ 54061 b
3560+1 Each contract resulting from the second procurement event
3561+2 shall provide for a commercial operation date on June 1
3562+3 next occurring up to 48 months after execution of the
3563+4 contract. Each contract shall provide that the owner shall
3564+5 receive payments for renewable energy credits for the
3565+6 applicable durations beginning with the commercial
3566+7 operation date of the new renewable energy facility. The
3567+8 form contract shall provide for adjustments to the
3568+9 commercial operation and payment start dates as needed due
3569+10 to any delays in completing the procurement and
3570+11 contracting processes, in finalizing interconnection
3571+12 agreements and installing interconnection facilities, and
3572+13 in obtaining other necessary governmental permits and
3573+14 approvals. The form contract shall be, to the maximum
3574+15 extent possible, consistent with standard electric
3575+16 industry contracts for sale, delivery, and purchase of
3576+17 renewable energy credits while taking into account the
3577+18 specific requirements of this subsection (c-5). The form
3578+19 contract shall provide for over-delivery and
3579+20 under-delivery of renewable energy credits within
3580+21 reasonable ranges during each 12-month period and penalty,
3581+22 default, and enforcement provisions for failure of the
3582+23 selling party to deliver renewable energy credits as
3583+24 specified in the contract and to comply with the
3584+25 requirements of this subsection (c-5). The standard form
3585+26 contract shall specify that all renewable energy credits
3586+
3587+
3588+
3589+
3590+
3591+ SB1699 Enrolled - 100 - LRB103 27684 AMQ 54061 b
3592+
3593+
3594+SB1699 Enrolled- 101 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 101 - LRB103 27684 AMQ 54061 b
3595+ SB1699 Enrolled - 101 - LRB103 27684 AMQ 54061 b
3596+1 delivered to the electric utility pursuant to the contract
3597+2 shall be retired. The Agency shall make the proposed
3598+3 contracts available for a reasonable period for comment by
3599+4 potential applicants, and shall publish the final form
3600+5 contract at least 30 days before the date of the first
3601+6 procurement event.
3602+7 (9) Coal to Solar and Energy Storage Initiative
3603+8 Charge.
3604+9 (A) By no later than July 1, 2022, each electric
3605+10 utility that served more than 300,000 retail customers
3606+11 in this State as of January 1, 2019 shall file a tariff
3607+12 with the Commission for the billing and collection of
3608+13 a Coal to Solar and Energy Storage Initiative Charge
3609+14 in accordance with subsection (i-5) of Section 16-108
3610+15 of the Public Utilities Act, with such tariff to be
3611+16 effective, following review and approval or
3612+17 modification by the Commission, beginning January 1,
3613+18 2023. The tariff shall provide for the calculation and
3614+19 setting of the electric utility's Coal to Solar and
3615+20 Energy Storage Initiative Charge to collect revenues
3616+21 estimated to be sufficient, in the aggregate, (i) to
3617+22 enable the electric utility to pay for the renewable
3618+23 energy credits it has contracted to purchase in the
3619+24 delivery year beginning June 1, 2023 and each delivery
3620+25 year thereafter from new renewable energy facilities
3621+26 located at the sites of qualifying electric generating
3622+
3623+
3624+
3625+
3626+
3627+ SB1699 Enrolled - 101 - LRB103 27684 AMQ 54061 b
3628+
3629+
3630+SB1699 Enrolled- 102 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 102 - LRB103 27684 AMQ 54061 b
3631+ SB1699 Enrolled - 102 - LRB103 27684 AMQ 54061 b
3632+1 facilities, and (ii) to fund the grant payments to be
3633+2 made in each delivery year by the Department of
3634+3 Commerce and Economic Opportunity, or any successor
3635+4 department or agency, which shall be referred to in
3636+5 this subsection (c-5) as the Department, pursuant to
3637+6 paragraph (10) of this subsection (c-5). The electric
3638+7 utility's tariff shall provide for the billing and
3639+8 collection of the Coal to Solar and Energy Storage
3640+9 Initiative Charge on each kilowatthour of electricity
3641+10 delivered to its delivery services customers within
3642+11 its service territory and shall provide for an annual
3643+12 reconciliation of revenues collected with actual
3644+13 costs, in accordance with subsection (i-5) of Section
3645+14 16-108 of the Public Utilities Act.
3646+15 (B) Each electric utility shall remit on a monthly
3647+16 basis to the State Treasurer, for deposit in the Coal
3648+17 to Solar and Energy Storage Initiative Fund provided
3649+18 for in this subsection (c-5), the electric utility's
3650+19 collections of the Coal to Solar and Energy Storage
3651+20 Initiative Charge in the amount estimated to be needed
3652+21 by the Department for grant payments pursuant to grant
3653+22 contracts entered into by the Department pursuant to
3654+23 paragraph (10) of this subsection (c-5).
3655+24 (10) Coal to Solar and Energy Storage Initiative Fund.
3656+25 (A) The Coal to Solar and Energy Storage
3657+26 Initiative Fund is established as a special fund in
3658+
3659+
3660+
3661+
3662+
3663+ SB1699 Enrolled - 102 - LRB103 27684 AMQ 54061 b
3664+
3665+
3666+SB1699 Enrolled- 103 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 103 - LRB103 27684 AMQ 54061 b
3667+ SB1699 Enrolled - 103 - LRB103 27684 AMQ 54061 b
3668+1 the State treasury. The Coal to Solar and Energy
3669+2 Storage Initiative Fund is authorized to receive, by
3670+3 statutory deposit, that portion specified in item (B)
3671+4 of paragraph (9) of this subsection (c-5) of moneys
3672+5 collected by electric utilities through imposition of
3673+6 the Coal to Solar and Energy Storage Initiative Charge
3674+7 required by this subsection (c-5). The Coal to Solar
3675+8 and Energy Storage Initiative Fund shall be
3676+9 administered by the Department to provide grants to
3677+10 support the installation and operation of energy
3678+11 storage facilities at the sites of qualifying electric
3679+12 generating facilities meeting the criteria specified
3680+13 in this paragraph (10).
3681+14 (B) The Coal to Solar and Energy Storage
3682+15 Initiative Fund shall not be subject to sweeps,
3683+16 administrative charges, or chargebacks, including, but
3684+17 not limited to, those authorized under Section 8h of
3685+18 the State Finance Act, that would in any way result in
3686+19 the transfer of those funds from the Coal to Solar and
3687+20 Energy Storage Initiative Fund to any other fund of
3688+21 this State or in having any such funds utilized for any
3689+22 purpose other than the express purposes set forth in
3690+23 this paragraph (10).
3691+24 (C) The Department shall utilize up to
3692+25 $280,500,000 in the Coal to Solar and Energy Storage
3693+26 Initiative Fund for grants, assuming sufficient
3694+
3695+
3696+
3697+
3698+
3699+ SB1699 Enrolled - 103 - LRB103 27684 AMQ 54061 b
3700+
3701+
3702+SB1699 Enrolled- 104 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 104 - LRB103 27684 AMQ 54061 b
3703+ SB1699 Enrolled - 104 - LRB103 27684 AMQ 54061 b
3704+1 qualifying applicants, to support installation of
3705+2 energy storage facilities at the sites of up to 3
3706+3 qualifying electric generating facilities located in
3707+4 the Midcontinent Independent System Operator, Inc.,
3708+5 region in Illinois and the sites of up to 2 qualifying
3709+6 electric generating facilities located in the PJM
3710+7 Interconnection, LLC region in Illinois that meet the
3711+8 criteria set forth in this subparagraph (C). The
3712+9 criteria for receipt of a grant pursuant to this
3713+10 subparagraph (C) are as follows:
3714+11 (1) the electric generating facility at the
3715+12 site has, or had prior to retirement, an electric
3716+13 generating capacity of at least 150 megawatts;
3717+14 (2) the electric generating facility burns (or
3718+15 burned prior to retirement) coal as its primary
3719+16 source of fuel;
3720+17 (3) if the electric generating facility is
3721+18 retired, it was retired subsequent to January 1,
3722+19 2016;
3723+20 (4) the owner of the electric generating
3724+21 facility has not been selected by the Agency
3725+22 pursuant to this subsection (c-5) of this Section
3726+23 to enter into a contract to sell renewable energy
3727+24 credits to one or more electric utilities from a
3728+25 new renewable energy facility located or to be
3729+26 located at or adjacent to the site at which the
3730+
3731+
3732+
3733+
3734+
3735+ SB1699 Enrolled - 104 - LRB103 27684 AMQ 54061 b
3736+
3737+
3738+SB1699 Enrolled- 105 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 105 - LRB103 27684 AMQ 54061 b
3739+ SB1699 Enrolled - 105 - LRB103 27684 AMQ 54061 b
3740+1 electric generating facility is located;
3741+2 (5) the electric generating facility located
3742+3 at the site was at one time owned, in whole or in
3743+4 part, by a public utility as defined in Section
3744+5 3-105 of the Public Utilities Act;
3745+6 (6) the electric generating facility at the
3746+7 site is not owned by (i) an electric cooperative
3747+8 as defined in Section 3-119 of the Public
3748+9 Utilities Act, or (ii) an entity described in
3749+10 subsection (b)(1) of Section 3-105 of the Public
3750+11 Utilities Act, or an association or consortium of
3751+12 or an entity owned by entities described in items
3752+13 (i) or (ii);
3753+14 (7) the proposed energy storage facility at
3754+15 the site will have energy storage capacity of at
3755+16 least 37 megawatts;
3756+17 (8) the owner commits to place the energy
3757+18 storage facility into commercial operation on
3758+19 either June 1, 2023, June 1, 2024, or June 1, 2025,
3759+20 with such date subject to adjustment as needed due
3760+21 to any delays in completing the grant contracting
3761+22 process, in finalizing interconnection agreements
3762+23 and in installing interconnection facilities, and
3763+24 in obtaining necessary governmental permits and
3764+25 approvals;
3765+26 (9) the owner agrees that the new energy
3766+
3767+
3768+
3769+
3770+
3771+ SB1699 Enrolled - 105 - LRB103 27684 AMQ 54061 b
3772+
3773+
3774+SB1699 Enrolled- 106 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 106 - LRB103 27684 AMQ 54061 b
3775+ SB1699 Enrolled - 106 - LRB103 27684 AMQ 54061 b
3776+1 storage facility will be constructed or installed
3777+2 by a qualified entity or entities consistent with
3778+3 the requirements of subsection (g) of Section
3779+4 16-128A of the Public Utilities Act and any rules
3780+5 adopted under that Section;
3781+6 (10) the owner agrees that personnel operating
3782+7 the energy storage facility will have the
3783+8 requisite skills, knowledge, training, experience,
3784+9 and competence, which may be demonstrated by
3785+10 completion or current participation and ultimate
3786+11 completion by employees of an accredited or
3787+12 otherwise recognized apprenticeship program for
3788+13 the employee's particular craft, trade, or skill,
3789+14 including through training and education courses
3790+15 and opportunities offered by the owner to
3791+16 employees of the coal-fueled electric generating
3792+17 facility or by previous employment experience
3793+18 performing the employee's particular work skill or
3794+19 function;
3795+20 (11) the owner commits that not less than the
3796+21 prevailing wage, as determined pursuant to the
3797+22 Prevailing Wage Act, will be paid to the owner's
3798+23 employees engaged in construction activities
3799+24 associated with the new energy storage facility
3800+25 and to the employees of the owner's contractors
3801+26 engaged in construction activities associated with
3802+
3803+
3804+
3805+
3806+
3807+ SB1699 Enrolled - 106 - LRB103 27684 AMQ 54061 b
3808+
3809+
3810+SB1699 Enrolled- 107 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 107 - LRB103 27684 AMQ 54061 b
3811+ SB1699 Enrolled - 107 - LRB103 27684 AMQ 54061 b
3812+1 the new energy storage facility, and that, on or
3813+2 before the commercial operation date of the new
3814+3 energy storage facility, the owner shall file a
3815+4 report with the Department certifying that the
3816+5 requirements of this subparagraph (11) have been
3817+6 met; and
3818+7 (12) the owner commits that if selected to
3819+8 receive a grant, it will negotiate a project labor
3820+9 agreement for the construction of the new energy
3821+10 storage facility that includes provisions
3822+11 requiring the parties to the agreement to work
3823+12 together to establish diversity threshold
3824+13 requirements and to ensure best efforts to meet
3825+14 diversity targets, improve diversity at the
3826+15 applicable job site, create diverse apprenticeship
3827+16 opportunities, and create opportunities to employ
3828+17 former coal-fired power plant workers.
3829+18 The Department shall accept applications for this
3830+19 grant program until March 31, 2022 and shall announce
3831+20 the award of grants no later than June 1, 2022. The
3832+21 Department shall make the grant payments to a
3833+22 recipient in equal annual amounts for 10 years
3834+23 following the date the energy storage facility is
3835+24 placed into commercial operation. The annual grant
3836+25 payments to a qualifying energy storage facility shall
3837+26 be $110,000 per megawatt of energy storage capacity,
3838+
3839+
3840+
3841+
3842+
3843+ SB1699 Enrolled - 107 - LRB103 27684 AMQ 54061 b
3844+
3845+
3846+SB1699 Enrolled- 108 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 108 - LRB103 27684 AMQ 54061 b
3847+ SB1699 Enrolled - 108 - LRB103 27684 AMQ 54061 b
3848+1 with total annual grant payments pursuant to this
3849+2 subparagraph (C) for qualifying energy storage
3850+3 facilities not to exceed $28,050,000 in any year.
3851+4 (D) Grants of funding for energy storage
3852+5 facilities pursuant to subparagraph (C) of this
3853+6 paragraph (10), from the Coal to Solar and Energy
3854+7 Storage Initiative Fund, shall be memorialized in
3855+8 grant contracts between the Department and the
3856+9 recipient. The grant contracts shall specify the date
3857+10 or dates in each year on which the annual grant
3858+11 payments shall be paid.
3859+12 (E) All disbursements from the Coal to Solar and
3860+13 Energy Storage Initiative Fund shall be made only upon
3861+14 warrants of the Comptroller drawn upon the Treasurer
3862+15 as custodian of the Fund upon vouchers signed by the
3863+16 Director of the Department or by the person or persons
3864+17 designated by the Director of the Department for that
3865+18 purpose. The Comptroller is authorized to draw the
3866+19 warrants upon vouchers so signed. The Treasurer shall
3867+20 accept all written warrants so signed and shall be
3868+21 released from liability for all payments made on those
3869+22 warrants.
3870+23 (11) Diversity, equity, and inclusion plans.
3871+24 (A) Each applicant selected in a procurement event
3872+25 to contract to supply renewable energy credits in
3873+26 accordance with this subsection (c-5) and each owner
3874+
3875+
3876+
3877+
3878+
3879+ SB1699 Enrolled - 108 - LRB103 27684 AMQ 54061 b
3880+
3881+
3882+SB1699 Enrolled- 109 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 109 - LRB103 27684 AMQ 54061 b
3883+ SB1699 Enrolled - 109 - LRB103 27684 AMQ 54061 b
3884+1 selected by the Department to receive a grant or
3885+2 grants to support the construction and operation of a
3886+3 new energy storage facility or facilities in
3887+4 accordance with this subsection (c-5) shall, within 60
3888+5 days following the Commission's approval of the
3889+6 applicant to contract to supply renewable energy
3890+7 credits or within 60 days following execution of a
3891+8 grant contract with the Department, as applicable,
3892+9 submit to the Commission a diversity, equity, and
3893+10 inclusion plan setting forth the applicant's or
3894+11 owner's numeric goals for the diversity composition of
3895+12 its supplier entities for the new renewable energy
3896+13 facility or new energy storage facility, as
3897+14 applicable, which shall be referred to for purposes of
3898+15 this paragraph (11) as the project, and the
3899+16 applicant's or owner's action plan and schedule for
3900+17 achieving those goals.
3901+18 (B) For purposes of this paragraph (11), diversity
3902+19 composition shall be based on the percentage, which
3903+20 shall be a minimum of 25%, of eligible expenditures
3904+21 for contract awards for materials and services (which
3905+22 shall be defined in the plan) to business enterprises
3906+23 owned by minority persons, women, or persons with
3907+24 disabilities as defined in Section 2 of the Business
3908+25 Enterprise for Minorities, Women, and Persons with
3909+26 Disabilities Act, to LGBTQ business enterprises, to
3910+
3911+
3912+
3913+
3914+
3915+ SB1699 Enrolled - 109 - LRB103 27684 AMQ 54061 b
3916+
3917+
3918+SB1699 Enrolled- 110 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 110 - LRB103 27684 AMQ 54061 b
3919+ SB1699 Enrolled - 110 - LRB103 27684 AMQ 54061 b
3920+1 veteran-owned business enterprises, and to business
3921+2 enterprises located in environmental justice
3922+3 communities. The diversity composition goals of the
3923+4 plan may include eligible expenditures in areas for
3924+5 vendor or supplier opportunities in addition to
3925+6 development and construction of the project, and may
3926+7 exclude from eligible expenditures materials and
3927+8 services with limited market availability, limited
3928+9 production and availability from suppliers in the
3929+10 United States, such as solar panels and storage
3930+11 batteries, and material and services that are subject
3931+12 to critical energy infrastructure or cybersecurity
3932+13 requirements or restrictions. The plan may provide
3933+14 that the diversity composition goals may be met
3934+15 through Tier 1 Direct or Tier 2 subcontracting
3935+16 expenditures or a combination thereof for the project.
3936+17 (C) The plan shall provide for, but not be limited
3937+18 to: (i) internal initiatives, including multi-tier
3938+19 initiatives, by the applicant or owner, or by its
3939+20 engineering, procurement and construction contractor
3940+21 if one is used for the project, which for purposes of
3941+22 this paragraph (11) shall be referred to as the EPC
3942+23 contractor, to enable diverse businesses to be
3943+24 considered fairly for selection to provide materials
3944+25 and services; (ii) requirements for the applicant or
3945+26 owner or its EPC contractor to proactively solicit and
3946+
3947+
3948+
3949+
3950+
3951+ SB1699 Enrolled - 110 - LRB103 27684 AMQ 54061 b
3952+
3953+
3954+SB1699 Enrolled- 111 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 111 - LRB103 27684 AMQ 54061 b
3955+ SB1699 Enrolled - 111 - LRB103 27684 AMQ 54061 b
3956+1 utilize diverse businesses to provide materials and
3957+2 services; and (iii) requirements for the applicant or
3958+3 owner or its EPC contractor to hire a diverse
3959+4 workforce for the project. The plan shall include a
3960+5 description of the applicant's or owner's diversity
3961+6 recruiting efforts both for the project and for other
3962+7 areas of the applicant's or owner's business
3963+8 operations. The plan shall provide for the imposition
3964+9 of financial penalties on the applicant's or owner's
3965+10 EPC contractor for failure to exercise best efforts to
3966+11 comply with and execute the EPC contractor's diversity
3967+12 obligations under the plan. The plan may provide for
3968+13 the applicant or owner to set aside a portion of the
3969+14 work on the project to serve as an incubation program
3970+15 for qualified businesses, as specified in the plan,
3971+16 owned by minority persons, women, persons with
3972+17 disabilities, LGBTQ persons, and veterans, and
3973+18 businesses located in environmental justice
3974+19 communities, seeking to enter the renewable energy
3975+20 industry.
3976+21 (D) The applicant or owner may submit a revised or
3977+22 updated plan to the Commission from time to time as
3978+23 circumstances warrant. The applicant or owner shall
3979+24 file annual reports with the Commission detailing the
3980+25 applicant's or owner's progress in implementing its
3981+26 plan and achieving its goals and any modifications the
3982+
3983+
3984+
3985+
3986+
3987+ SB1699 Enrolled - 111 - LRB103 27684 AMQ 54061 b
3988+
3989+
3990+SB1699 Enrolled- 112 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 112 - LRB103 27684 AMQ 54061 b
3991+ SB1699 Enrolled - 112 - LRB103 27684 AMQ 54061 b
3992+1 applicant or owner has made to its plan to better
3993+2 achieve its diversity, equity and inclusion goals. The
3994+3 applicant or owner shall file a final report on the
3995+4 fifth June 1 following the commercial operation date
3996+5 of the new renewable energy resource or new energy
3997+6 storage facility, but the applicant or owner shall
3998+7 thereafter continue to be subject to applicable
3999+8 reporting requirements of Section 5-117 of the Public
4000+9 Utilities Act.
4001+10 (c-10) Equity accountability system. It is the purpose of
4002+11 this subsection (c-10) to create an equity accountability
4003+12 system, which includes the minimum equity standards for all
4004+13 renewable energy procurements, the equity category of the
4005+14 Adjustable Block Program, and the equity prioritization for
4006+15 noncompetitive procurements, that is successful in advancing
4007+16 priority access to the clean energy economy for businesses and
4008+17 workers from communities that have been excluded from economic
4009+18 opportunities in the energy sector, have been subject to
4010+19 disproportionate levels of pollution, and have
4011+20 disproportionately experienced negative public health
4012+21 outcomes. Further, it is the purpose of this subsection to
4013+22 ensure that this equity accountability system is successful in
4014+23 advancing equity across Illinois by providing access to the
4015+24 clean energy economy for businesses and workers from
4016+25 communities that have been historically excluded from economic
4017+26 opportunities in the energy sector, have been subject to
4018+
4019+
4020+
4021+
4022+
4023+ SB1699 Enrolled - 112 - LRB103 27684 AMQ 54061 b
4024+
4025+
4026+SB1699 Enrolled- 113 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 113 - LRB103 27684 AMQ 54061 b
4027+ SB1699 Enrolled - 113 - LRB103 27684 AMQ 54061 b
4028+1 disproportionate levels of pollution, and have
4029+2 disproportionately experienced negative public health
4030+3 outcomes.
4031+4 (1) Minimum equity standards. The Agency shall create
4032+5 programs with the purpose of increasing access to and
4033+6 development of equity eligible contractors, who are prime
4034+7 contractors and subcontractors, across all of the programs
4035+8 it manages. All applications for renewable energy credit
4036+9 procurements shall comply with specific minimum equity
4037+10 commitments. Starting in the delivery year immediately
4038+11 following the next long-term renewable resources
4039+12 procurement plan, at least 10% of the project workforce
4040+13 for each entity participating in a procurement program
4041+14 outlined in this subsection (c-10) must be done by equity
4042+15 eligible persons or equity eligible contractors. The
4043+16 Agency shall increase the minimum percentage each delivery
4044+17 year thereafter by increments that ensure a statewide
4045+18 average of 30% of the project workforce for each entity
4046+19 participating in a procurement program is done by equity
4047+20 eligible persons or equity eligible contractors by 2030.
4048+21 The Agency shall propose a schedule of percentage
4049+22 increases to the minimum equity standards in its draft
4050+23 revised renewable energy resources procurement plan
4051+24 submitted to the Commission for approval pursuant to
4052+25 paragraph (5) of subsection (b) of Section 16-111.5 of the
4053+26 Public Utilities Act. In determining these annual
4054+
4055+
4056+
4057+
4058+
4059+ SB1699 Enrolled - 113 - LRB103 27684 AMQ 54061 b
4060+
4061+
4062+SB1699 Enrolled- 114 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 114 - LRB103 27684 AMQ 54061 b
4063+ SB1699 Enrolled - 114 - LRB103 27684 AMQ 54061 b
4064+1 increases, the Agency shall have the discretion to
4065+2 establish different minimum equity standards for different
4066+3 types of procurements and different regions of the State
4067+4 if the Agency finds that doing so will further the
4068+5 purposes of this subsection (c-10). The proposed schedule
4069+6 of annual increases shall be revisited and updated on an
4070+7 annual basis. Revisions shall be developed with
4071+8 stakeholder input, including from equity eligible persons,
4072+9 equity eligible contractors, clean energy industry
4073+10 representatives, and community-based organizations that
4074+11 work with such persons and contractors.
4075+12 (A) At the start of each delivery year, the Agency
4076+13 shall require a compliance plan from each entity
4077+14 participating in a procurement program of subsection
4078+15 (c) of this Section that demonstrates how they will
4079+16 achieve compliance with the minimum equity standard
4080+17 percentage for work completed in that delivery year.
4081+18 If an entity applies for its approved vendor or
4082+19 designee status between delivery years, the Agency
4083+20 shall require a compliance plan at the time of
4084+21 application.
4085+22 (B) Halfway through each delivery year, the Agency
4086+23 shall require each entity participating in a
4087+24 procurement program to confirm that it will achieve
4088+25 compliance in that delivery year, when applicable. The
4089+26 Agency may offer corrective action plans to entities
4090+
4091+
4092+
4093+
4094+
4095+ SB1699 Enrolled - 114 - LRB103 27684 AMQ 54061 b
4096+
4097+
4098+SB1699 Enrolled- 115 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 115 - LRB103 27684 AMQ 54061 b
4099+ SB1699 Enrolled - 115 - LRB103 27684 AMQ 54061 b
4100+1 that are not on track to achieve compliance.
4101+2 (C) At the end of each delivery year, each entity
4102+3 participating and completing work in that delivery
4103+4 year in a procurement program of subsection (c) shall
4104+5 submit a report to the Agency that demonstrates how it
4105+6 achieved compliance with the minimum equity standards
4106+7 percentage for that delivery year.
4107+8 (D) The Agency shall prohibit participation in
4108+9 procurement programs by an approved vendor or
4109+10 designee, as applicable, or entities with which an
4110+11 approved vendor or designee, as applicable, shares a
4111+12 common parent company if an approved vendor or
4112+13 designee, as applicable, failed to meet the minimum
4113+14 equity standards for the prior delivery year. Waivers
4114+15 approved for lack of equity eligible persons or equity
4115+16 eligible contractors in a geographic area of a project
4116+17 shall not count against the approved vendor or
4117+18 designee. The Agency shall offer a corrective action
4118+19 plan for any such entities to assist them in obtaining
4119+20 compliance and shall allow continued access to
4120+21 procurement programs upon an approved vendor or
4121+22 designee demonstrating compliance.
4122+23 (E) The Agency shall pursue efficiencies achieved
4123+24 by combining with other approved vendor or designee
4124+25 reporting.
4125+26 (2) Equity accountability system within the Adjustable
4126+
4127+
4128+
4129+
4130+
4131+ SB1699 Enrolled - 115 - LRB103 27684 AMQ 54061 b
4132+
4133+
4134+SB1699 Enrolled- 116 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 116 - LRB103 27684 AMQ 54061 b
4135+ SB1699 Enrolled - 116 - LRB103 27684 AMQ 54061 b
4136+1 Block program. The equity category described in item (vi)
4137+2 of subparagraph (K) of subsection (c) is only available to
4138+3 applicants that are equity eligible contractors.
4139+4 (3) Equity accountability system within competitive
4140+5 procurements. Through its long-term renewable resources
4141+6 procurement plan, the Agency shall develop requirements
4142+7 for ensuring that competitive procurement processes,
4143+8 including utility-scale solar, utility-scale wind, and
4144+9 brownfield site photovoltaic projects, advance the equity
4145+10 goals of this subsection (c-10). Subject to Commission
4146+11 approval, the Agency shall develop bid application
4147+12 requirements and a bid evaluation methodology for ensuring
4148+13 that utilization of equity eligible contractors, whether
4149+14 as bidders or as participants on project development, is
4150+15 optimized, including requiring that winning or successful
4151+16 applicants for utility-scale projects are or will partner
4152+17 with equity eligible contractors and giving preference to
4153+18 bids through which a higher portion of contract value
4154+19 flows to equity eligible contractors. To the extent
4155+20 practicable, entities participating in competitive
4156+21 procurements shall also be required to meet all the equity
4157+22 accountability requirements for approved vendors and their
4158+23 designees under this subsection (c-10). In developing
4159+24 these requirements, the Agency shall also consider whether
4160+25 equity goals can be further advanced through additional
4161+26 measures.
4162+
4163+
4164+
4165+
4166+
4167+ SB1699 Enrolled - 116 - LRB103 27684 AMQ 54061 b
4168+
4169+
4170+SB1699 Enrolled- 117 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 117 - LRB103 27684 AMQ 54061 b
4171+ SB1699 Enrolled - 117 - LRB103 27684 AMQ 54061 b
4172+1 (4) In the first revision to the long-term renewable
4173+2 energy resources procurement plan and each revision
4174+3 thereafter, the Agency shall include the following:
4175+4 (A) The current status and number of equity
4176+5 eligible contractors listed in the Energy Workforce
4177+6 Equity Database designed in subsection (c-25),
4178+7 including the number of equity eligible contractors
4179+8 with current certifications as issued by the Agency.
4180+9 (B) A mechanism for measuring, tracking, and
4181+10 reporting project workforce at the approved vendor or
4182+11 designee level, as applicable, which shall include a
4183+12 measurement methodology and records to be made
4184+13 available for audit by the Agency or the Program
4185+14 Administrator.
4186+15 (C) A program for approved vendors, designees,
4187+16 eligible persons, and equity eligible contractors to
4188+17 receive trainings, guidance, and other support from
4189+18 the Agency or its designee regarding the equity
4190+19 category outlined in item (vi) of subparagraph (K) of
4191+20 paragraph (1) of subsection (c) and in meeting the
4192+21 minimum equity standards of this subsection (c-10).
4193+22 (D) A process for certifying equity eligible
4194+23 contractors and equity eligible persons. The
4195+24 certification process shall coordinate with the Energy
4196+25 Workforce Equity Database set forth in subsection
4197+26 (c-25).
4198+
4199+
4200+
4201+
4202+
4203+ SB1699 Enrolled - 117 - LRB103 27684 AMQ 54061 b
4204+
4205+
4206+SB1699 Enrolled- 118 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 118 - LRB103 27684 AMQ 54061 b
4207+ SB1699 Enrolled - 118 - LRB103 27684 AMQ 54061 b
4208+1 (E) An application for waiver of the minimum
4209+2 equity standards of this subsection, which the Agency
4210+3 shall have the discretion to grant in rare
4211+4 circumstances. The Agency may grant such a waiver
4212+5 where the applicant provides evidence of significant
4213+6 efforts toward meeting the minimum equity commitment,
4214+7 including: use of the Energy Workforce Equity
4215+8 Database; efforts to hire or contract with entities
4216+9 that hire eligible persons; and efforts to establish
4217+10 contracting relationships with eligible contractors.
4218+11 The Agency shall support applicants in understanding
4219+12 the Energy Workforce Equity Database and other
4220+13 resources for pursuing compliance of the minimum
4221+14 equity standards. Waivers shall be project-specific,
4222+15 unless the Agency deems it necessary to grant a waiver
4223+16 across a portfolio of projects, and in effect for no
4224+17 longer than one year. Any waiver extension or
4225+18 subsequent waiver request from an applicant shall be
4226+19 subject to the requirements of this Section and shall
4227+20 specify efforts made to reach compliance. When
4228+21 considering whether to grant a waiver, and to what
4229+22 extent, the Agency shall consider the degree to which
4230+23 similarly situated applicants have been able to meet
4231+24 these minimum equity commitments. For repeated waiver
4232+25 requests for specific lack of eligible persons or
4233+26 eligible contractors available, the Agency shall make
4234+
4235+
4236+
4237+
4238+
4239+ SB1699 Enrolled - 118 - LRB103 27684 AMQ 54061 b
4240+
4241+
4242+SB1699 Enrolled- 119 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 119 - LRB103 27684 AMQ 54061 b
4243+ SB1699 Enrolled - 119 - LRB103 27684 AMQ 54061 b
4244+1 recommendations to target recruitment to add such
4245+2 eligible persons or eligible contractors to the
4246+3 database.
4247+4 (5) The Agency shall collect information about work on
4248+5 projects or portfolios of projects subject to these
4249+6 minimum equity standards to ensure compliance with this
4250+7 subsection (c-10). Reporting in furtherance of this
4251+8 requirement may be combined with other annual reporting
4252+9 requirements. Such reporting shall include proof of
4253+10 certification of each equity eligible contractor or equity
4254+11 eligible person during the applicable time period.
4255+12 (6) The Agency shall keep confidential all information
4256+13 and communication that provides private or personal
4257+14 information.
4258+15 (7) Modifications to the equity accountability system.
4259+16 As part of the update of the long-term renewable resources
4260+17 procurement plan to be initiated in 2023, or sooner if the
4261+18 Agency deems necessary, the Agency shall determine the
4262+19 extent to which the equity accountability system described
4263+20 in this subsection (c-10) has advanced the goals of this
4264+21 amendatory Act of the 102nd General Assembly, including
4265+22 through the inclusion of equity eligible persons and
4266+23 equity eligible contractors in renewable energy credit
4267+24 projects. If the Agency finds that the equity
4268+25 accountability system has failed to meet those goals to
4269+26 its fullest potential, the Agency may revise the following
4270+
4271+
4272+
4273+
4274+
4275+ SB1699 Enrolled - 119 - LRB103 27684 AMQ 54061 b
4276+
4277+
4278+SB1699 Enrolled- 120 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 120 - LRB103 27684 AMQ 54061 b
4279+ SB1699 Enrolled - 120 - LRB103 27684 AMQ 54061 b
4280+1 criteria for future Agency procurements: (A) the
4281+2 percentage of project workforce, or other appropriate
4282+3 workforce measure, certified as equity eligible persons or
4283+4 equity eligible contractors; (B) definitions for equity
4284+5 investment eligible persons and equity investment eligible
4285+6 community; and (C) such other modifications necessary to
4286+7 advance the goals of this amendatory Act of the 102nd
4287+8 General Assembly effectively. Such revised criteria may
4288+9 also establish distinct equity accountability systems for
4289+10 different types of procurements or different regions of
4290+11 the State if the Agency finds that doing so will further
4291+12 the purposes of such programs. Revisions shall be
4292+13 developed with stakeholder input, including from equity
4293+14 eligible persons, equity eligible contractors, and
4294+15 community-based organizations that work with such persons
4295+16 and contractors.
4296+17 (c-15) Racial discrimination elimination powers and
4297+18 process.
4298+19 (1) Purpose. It is the purpose of this subsection to
4299+20 empower the Agency and other State actors to remedy racial
4300+21 discrimination in Illinois' clean energy economy as
4301+22 effectively and expediently as possible, including through
4302+23 the use of race-conscious remedies, such as race-conscious
4303+24 contracting and hiring goals, as consistent with State and
4304+25 federal law.
4305+26 (2) Racial disparity and discrimination review
4306+
4307+
4308+
4309+
4310+
4311+ SB1699 Enrolled - 120 - LRB103 27684 AMQ 54061 b
4312+
4313+
4314+SB1699 Enrolled- 121 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 121 - LRB103 27684 AMQ 54061 b
4315+ SB1699 Enrolled - 121 - LRB103 27684 AMQ 54061 b
4316+1 process.
4317+2 (A) Within one year after awarding contracts using
4318+3 the equity actions processes established in this
4319+4 Section, the Agency shall publish a report evaluating
4320+5 the effectiveness of the equity actions point criteria
4321+6 of this Section in increasing participation of equity
4322+7 eligible persons and equity eligible contractors. The
4323+8 report shall disaggregate participating workers and
4324+9 contractors by race and ethnicity. The report shall be
4325+10 forwarded to the Governor, the General Assembly, and
4326+11 the Illinois Commerce Commission and be made available
4327+12 to the public.
4328+13 (B) As soon as is practicable thereafter, the
4329+14 Agency, in consultation with the Department of
4330+15 Commerce and Economic Opportunity, Department of
4331+16 Labor, and other agencies that may be relevant, shall
4332+17 commission and publish a disparity and availability
4333+18 study that measures the presence and impact of
4334+19 discrimination on minority businesses and workers in
4335+20 Illinois' clean energy economy. The Agency may hire
4336+21 consultants and experts to conduct the disparity and
4337+22 availability study, with the retention of those
4338+23 consultants and experts exempt from the requirements
4339+24 of Section 20-10 of the Illinois Procurement Code. The
4340+25 Illinois Power Agency shall forward a copy of its
4341+26 findings and recommendations to the Governor, the
4342+
4343+
4344+
4345+
4346+
4347+ SB1699 Enrolled - 121 - LRB103 27684 AMQ 54061 b
4348+
4349+
4350+SB1699 Enrolled- 122 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 122 - LRB103 27684 AMQ 54061 b
4351+ SB1699 Enrolled - 122 - LRB103 27684 AMQ 54061 b
4352+1 General Assembly, and the Illinois Commerce
4353+2 Commission. If the disparity and availability study
4354+3 establishes a strong basis in evidence that there is
4355+4 discrimination in Illinois' clean energy economy, the
4356+5 Agency, Department of Commerce and Economic
4357+6 Opportunity, Department of Labor, Department of
4358+7 Corrections, and other appropriate agencies shall take
4359+8 appropriate remedial actions, including race-conscious
4360+9 remedial actions as consistent with State and federal
4361+10 law, to effectively remedy this discrimination. Such
4362+11 remedies may include modification of the equity
4363+12 accountability system as described in subsection
4364+13 (c-10).
4365+14 (c-20) Program data collection.
4366+15 (1) Purpose. Data collection, data analysis, and
4367+16 reporting are critical to ensure that the benefits of the
4368+17 clean energy economy provided to Illinois residents and
4369+18 businesses are equitably distributed across the State. The
4370+19 Agency shall collect data from program applicants in order
4371+20 to track and improve equitable distribution of benefits
4372+21 across Illinois communities for all procurements the
4373+22 Agency conducts. The Agency shall use this data to, among
4374+23 other things, measure any potential impact of racial
4375+24 discrimination on the distribution of benefits and provide
4376+25 information necessary to correct any discrimination
4377+26 through methods consistent with State and federal law.
4378+
4379+
4380+
4381+
4382+
4383+ SB1699 Enrolled - 122 - LRB103 27684 AMQ 54061 b
4384+
4385+
4386+SB1699 Enrolled- 123 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 123 - LRB103 27684 AMQ 54061 b
4387+ SB1699 Enrolled - 123 - LRB103 27684 AMQ 54061 b
4388+1 (2) Agency collection of program data. The Agency
4389+2 shall collect demographic and geographic data for each
4390+3 entity awarded contracts under any Agency-administered
4391+4 program.
4392+5 (3) Required information to be collected. The Agency
4393+6 shall collect the following information from applicants
4394+7 and program participants where applicable:
4395+8 (A) demographic information, including racial or
4396+9 ethnic identity for real persons employed, contracted,
4397+10 or subcontracted through the program and owners of
4398+11 businesses or entities that apply to receive renewable
4399+12 energy credits from the Agency;
4400+13 (B) geographic location of the residency of real
4401+14 persons employed, contracted, or subcontracted through
4402+15 the program and geographic location of the
4403+16 headquarters of the business or entity that applies to
4404+17 receive renewable energy credits from the Agency; and
4405+18 (C) any other information the Agency determines is
4406+19 necessary for the purpose of achieving the purpose of
4407+20 this subsection.
4408+21 (4) Publication of collected information. The Agency
4409+22 shall publish, at least annually, information on the
4410+23 demographics of program participants on an aggregate
4411+24 basis.
4412+25 (5) Nothing in this subsection shall be interpreted to
4413+26 limit the authority of the Agency, or other agency or
4414+
4415+
4416+
4417+
4418+
4419+ SB1699 Enrolled - 123 - LRB103 27684 AMQ 54061 b
4420+
4421+
4422+SB1699 Enrolled- 124 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 124 - LRB103 27684 AMQ 54061 b
4423+ SB1699 Enrolled - 124 - LRB103 27684 AMQ 54061 b
4424+1 department of the State, to require or collect demographic
4425+2 information from applicants of other State programs.
4426+3 (c-25) Energy Workforce Equity Database.
4427+4 (1) The Agency, in consultation with the Department of
4428+5 Commerce and Economic Opportunity, shall create an Energy
4429+6 Workforce Equity Database, and may contract with a third
4430+7 party to do so ("database program administrator"). If the
4431+8 Department decides to contract with a third party, that
4432+9 third party shall be exempt from the requirements of
4433+10 Section 20-10 of the Illinois Procurement Code. The Energy
4434+11 Workforce Equity Database shall be a searchable database
4435+12 of suppliers, vendors, and subcontractors for clean energy
4436+13 industries that is:
4437+14 (A) publicly accessible;
4438+15 (B) easy for people to find and use;
4439+16 (C) organized by company specialty or field;
4440+17 (D) region-specific; and
4441+18 (E) populated with information including, but not
4442+19 limited to, contacts for suppliers, vendors, or
4443+20 subcontractors who are minority and women-owned
4444+21 business enterprise certified or who participate or
4445+22 have participated in any of the programs described in
4446+23 this Act.
4447+24 (2) The Agency shall create an easily accessible,
4448+25 public facing online tool using the database information
4449+26 that includes, at a minimum, the following:
4450+
4451+
4452+
4453+
4454+
4455+ SB1699 Enrolled - 124 - LRB103 27684 AMQ 54061 b
4456+
4457+
4458+SB1699 Enrolled- 125 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 125 - LRB103 27684 AMQ 54061 b
4459+ SB1699 Enrolled - 125 - LRB103 27684 AMQ 54061 b
4460+1 (A) a map of environmental justice and equity
4461+2 investment eligible communities;
4462+3 (B) job postings and recruiting opportunities;
4463+4 (C) a means by which recruiting clean energy
4464+5 companies can find and interact with current or former
4465+6 participants of clean energy workforce training
4466+7 programs;
4467+8 (D) information on workforce training service
4468+9 providers and training opportunities available to
4469+10 prospective workers;
4470+11 (E) renewable energy company diversity reporting;
4471+12 (F) a list of equity eligible contractors with
4472+13 their contact information, types of work performed,
4473+14 and locations worked in;
4474+15 (G) reporting on outcomes of the programs
4475+16 described in the workforce programs of the Energy
4476+17 Transition Act, including information such as, but not
4477+18 limited to, retention rate, graduation rate, and
4478+19 placement rates of trainees; and
4479+20 (H) information about the Jobs and Environmental
4480+21 Justice Grant Program, the Clean Energy Jobs and
4481+22 Justice Fund, and other sources of capital.
4482+23 (3) The Agency shall ensure the database is regularly
4483+24 updated to ensure information is current and shall
4484+25 coordinate with the Department of Commerce and Economic
4485+26 Opportunity to ensure that it includes information on
4486+
4487+
4488+
4489+
4490+
4491+ SB1699 Enrolled - 125 - LRB103 27684 AMQ 54061 b
4492+
4493+
4494+SB1699 Enrolled- 126 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 126 - LRB103 27684 AMQ 54061 b
4495+ SB1699 Enrolled - 126 - LRB103 27684 AMQ 54061 b
4496+1 individuals and entities that are or have participated in
4497+2 the Clean Jobs Workforce Network Program, Clean Energy
4498+3 Contractor Incubator Program, Returning Residents Clean
4499+4 Jobs Training Program, or Clean Energy Primes Contractor
4500+5 Accelerator Program.
4501+6 (c-30) Enforcement of minimum equity standards. All
4502+7 entities seeking renewable energy credits must submit an
4503+8 annual report to demonstrate compliance with each of the
4504+9 equity commitments required under subsection (c-10). If the
4505+10 Agency concludes the entity has not met or maintained its
4506+11 minimum equity standards required under the applicable
4507+12 subparagraphs under subsection (c-10), the Agency shall deny
4508+13 the entity's ability to participate in procurement programs in
4509+14 subsection (c), including by withholding approved vendor or
4510+15 designee status. The Agency may require the entity to enter
4511+16 into a corrective action plan. An entity that is not
4512+17 recertified for failing to meet required equity actions in
4513+18 subparagraph (c-10) may reapply once they have a corrective
4514+19 action plan and achieve compliance with the minimum equity
4515+20 standards.
4516+21 (d) Clean coal portfolio standard.
4517+22 (1) The procurement plans shall include electricity
4518+23 generated using clean coal. Each utility shall enter into
4519+24 one or more sourcing agreements with the initial clean
4520+25 coal facility, as provided in paragraph (3) of this
4521+26 subsection (d), covering electricity generated by the
4522+
4523+
4524+
4525+
4526+
4527+ SB1699 Enrolled - 126 - LRB103 27684 AMQ 54061 b
4528+
4529+
4530+SB1699 Enrolled- 127 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 127 - LRB103 27684 AMQ 54061 b
4531+ SB1699 Enrolled - 127 - LRB103 27684 AMQ 54061 b
4532+1 initial clean coal facility representing at least 5% of
4533+2 each utility's total supply to serve the load of eligible
4534+3 retail customers in 2015 and each year thereafter, as
4535+4 described in paragraph (3) of this subsection (d), subject
4536+5 to the limits specified in paragraph (2) of this
4537+6 subsection (d). It is the goal of the State that by January
4538+7 1, 2025, 25% of the electricity used in the State shall be
4539+8 generated by cost-effective clean coal facilities. For
4540+9 purposes of this subsection (d), "cost-effective" means
4541+10 that the expenditures pursuant to such sourcing agreements
4542+11 do not cause the limit stated in paragraph (2) of this
4543+12 subsection (d) to be exceeded and do not exceed cost-based
4544+13 benchmarks, which shall be developed to assess all
4545+14 expenditures pursuant to such sourcing agreements covering
4546+15 electricity generated by clean coal facilities, other than
4547+16 the initial clean coal facility, by the procurement
4548+17 administrator, in consultation with the Commission staff,
4549+18 Agency staff, and the procurement monitor and shall be
4550+19 subject to Commission review and approval.
4551+20 A utility party to a sourcing agreement shall
4552+21 immediately retire any emission credits that it receives
4553+22 in connection with the electricity covered by such
4554+23 agreement.
4555+24 Utilities shall maintain adequate records documenting
4556+25 the purchases under the sourcing agreement to comply with
4557+26 this subsection (d) and shall file an accounting with the
4558+
4559+
4560+
4561+
4562+
4563+ SB1699 Enrolled - 127 - LRB103 27684 AMQ 54061 b
4564+
4565+
4566+SB1699 Enrolled- 128 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 128 - LRB103 27684 AMQ 54061 b
4567+ SB1699 Enrolled - 128 - LRB103 27684 AMQ 54061 b
4568+1 load forecast that must be filed with the Agency by July 15
4569+2 of each year, in accordance with subsection (d) of Section
4570+3 16-111.5 of the Public Utilities Act.
4571+4 A utility shall be deemed to have complied with the
4572+5 clean coal portfolio standard specified in this subsection
4573+6 (d) if the utility enters into a sourcing agreement as
4574+7 required by this subsection (d).
4575+8 (2) For purposes of this subsection (d), the required
4576+9 execution of sourcing agreements with the initial clean
4577+10 coal facility for a particular year shall be measured as a
4578+11 percentage of the actual amount of electricity
4579+12 (megawatt-hours) supplied by the electric utility to
4580+13 eligible retail customers in the planning year ending
4581+14 immediately prior to the agreement's execution. For
4582+15 purposes of this subsection (d), the amount paid per
4583+16 kilowatthour means the total amount paid for electric
4584+17 service expressed on a per kilowatthour basis. For
4585+18 purposes of this subsection (d), the total amount paid for
4586+19 electric service includes without limitation amounts paid
4587+20 for supply, transmission, distribution, surcharges and
4588+21 add-on taxes.
4589+22 Notwithstanding the requirements of this subsection
4590+23 (d), the total amount paid under sourcing agreements with
4591+24 clean coal facilities pursuant to the procurement plan for
4592+25 any given year shall be reduced by an amount necessary to
4593+26 limit the annual estimated average net increase due to the
4594+
4595+
4596+
4597+
4598+
4599+ SB1699 Enrolled - 128 - LRB103 27684 AMQ 54061 b
4600+
4601+
4602+SB1699 Enrolled- 129 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 129 - LRB103 27684 AMQ 54061 b
4603+ SB1699 Enrolled - 129 - LRB103 27684 AMQ 54061 b
4604+1 costs of these resources included in the amounts paid by
4605+2 eligible retail customers in connection with electric
4606+3 service to:
4607+4 (A) in 2010, no more than 0.5% of the amount paid
4608+5 per kilowatthour by those customers during the year
4609+6 ending May 31, 2009;
4610+7 (B) in 2011, the greater of an additional 0.5% of
4611+8 the amount paid per kilowatthour by those customers
4612+9 during the year ending May 31, 2010 or 1% of the amount
4613+10 paid per kilowatthour by those customers during the
4614+11 year ending May 31, 2009;
4615+12 (C) in 2012, the greater of an additional 0.5% of
4616+13 the amount paid per kilowatthour by those customers
4617+14 during the year ending May 31, 2011 or 1.5% of the
4618+15 amount paid per kilowatthour by those customers during
4619+16 the year ending May 31, 2009;
4620+17 (D) in 2013, the greater of an additional 0.5% of
4621+18 the amount paid per kilowatthour by those customers
4622+19 during the year ending May 31, 2012 or 2% of the amount
4623+20 paid per kilowatthour by those customers during the
4624+21 year ending May 31, 2009; and
4625+22 (E) thereafter, the total amount paid under
4626+23 sourcing agreements with clean coal facilities
4627+24 pursuant to the procurement plan for any single year
4628+25 shall be reduced by an amount necessary to limit the
4629+26 estimated average net increase due to the cost of
4630+
4631+
4632+
4633+
4634+
4635+ SB1699 Enrolled - 129 - LRB103 27684 AMQ 54061 b
4636+
4637+
4638+SB1699 Enrolled- 130 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 130 - LRB103 27684 AMQ 54061 b
4639+ SB1699 Enrolled - 130 - LRB103 27684 AMQ 54061 b
4640+1 these resources included in the amounts paid by
4641+2 eligible retail customers in connection with electric
4642+3 service to no more than the greater of (i) 2.015% of
4643+4 the amount paid per kilowatthour by those customers
4644+5 during the year ending May 31, 2009 or (ii) the
4645+6 incremental amount per kilowatthour paid for these
4646+7 resources in 2013. These requirements may be altered
4647+8 only as provided by statute.
4648+9 No later than June 30, 2015, the Commission shall
4649+10 review the limitation on the total amount paid under
4650+11 sourcing agreements, if any, with clean coal facilities
4651+12 pursuant to this subsection (d) and report to the General
4652+13 Assembly its findings as to whether that limitation unduly
4653+14 constrains the amount of electricity generated by
4654+15 cost-effective clean coal facilities that is covered by
4655+16 sourcing agreements.
4656+17 (3) Initial clean coal facility. In order to promote
4657+18 development of clean coal facilities in Illinois, each
4658+19 electric utility subject to this Section shall execute a
4659+20 sourcing agreement to source electricity from a proposed
4660+21 clean coal facility in Illinois (the "initial clean coal
4661+22 facility") that will have a nameplate capacity of at least
4662+23 500 MW when commercial operation commences, that has a
4663+24 final Clean Air Act permit on June 1, 2009 (the effective
4664+25 date of Public Act 95-1027), and that will meet the
4665+26 definition of clean coal facility in Section 1-10 of this
4666+
4667+
4668+
4669+
4670+
4671+ SB1699 Enrolled - 130 - LRB103 27684 AMQ 54061 b
4672+
4673+
4674+SB1699 Enrolled- 131 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 131 - LRB103 27684 AMQ 54061 b
4675+ SB1699 Enrolled - 131 - LRB103 27684 AMQ 54061 b
4676+1 Act when commercial operation commences. The sourcing
4677+2 agreements with this initial clean coal facility shall be
4678+3 subject to both approval of the initial clean coal
4679+4 facility by the General Assembly and satisfaction of the
4680+5 requirements of paragraph (4) of this subsection (d) and
4681+6 shall be executed within 90 days after any such approval
4682+7 by the General Assembly. The Agency and the Commission
4683+8 shall have authority to inspect all books and records
4684+9 associated with the initial clean coal facility during the
4685+10 term of such a sourcing agreement. A utility's sourcing
4686+11 agreement for electricity produced by the initial clean
4687+12 coal facility shall include:
4688+13 (A) a formula contractual price (the "contract
4689+14 price") approved pursuant to paragraph (4) of this
4690+15 subsection (d), which shall:
4691+16 (i) be determined using a cost of service
4692+17 methodology employing either a level or deferred
4693+18 capital recovery component, based on a capital
4694+19 structure consisting of 45% equity and 55% debt,
4695+20 and a return on equity as may be approved by the
4696+21 Federal Energy Regulatory Commission, which in any
4697+22 case may not exceed the lower of 11.5% or the rate
4698+23 of return approved by the General Assembly
4699+24 pursuant to paragraph (4) of this subsection (d);
4700+25 and
4701+26 (ii) provide that all miscellaneous net
4702+
4703+
4704+
4705+
4706+
4707+ SB1699 Enrolled - 131 - LRB103 27684 AMQ 54061 b
4708+
4709+
4710+SB1699 Enrolled- 132 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 132 - LRB103 27684 AMQ 54061 b
4711+ SB1699 Enrolled - 132 - LRB103 27684 AMQ 54061 b
4712+1 revenue, including but not limited to net revenue
4713+2 from the sale of emission allowances, if any,
4714+3 substitute natural gas, if any, grants or other
4715+4 support provided by the State of Illinois or the
4716+5 United States Government, firm transmission
4717+6 rights, if any, by-products produced by the
4718+7 facility, energy or capacity derived from the
4719+8 facility and not covered by a sourcing agreement
4720+9 pursuant to paragraph (3) of this subsection (d)
4721+10 or item (5) of subsection (d) of Section 16-115 of
4722+11 the Public Utilities Act, whether generated from
4723+12 the synthesis gas derived from coal, from SNG, or
4724+13 from natural gas, shall be credited against the
4725+14 revenue requirement for this initial clean coal
4726+15 facility;
4727+16 (B) power purchase provisions, which shall:
4728+17 (i) provide that the utility party to such
4729+18 sourcing agreement shall pay the contract price
4730+19 for electricity delivered under such sourcing
4731+20 agreement;
4732+21 (ii) require delivery of electricity to the
4733+22 regional transmission organization market of the
4734+23 utility that is party to such sourcing agreement;
4735+24 (iii) require the utility party to such
4736+25 sourcing agreement to buy from the initial clean
4737+26 coal facility in each hour an amount of energy
4738+
4739+
4740+
4741+
4742+
4743+ SB1699 Enrolled - 132 - LRB103 27684 AMQ 54061 b
4744+
4745+
4746+SB1699 Enrolled- 133 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 133 - LRB103 27684 AMQ 54061 b
4747+ SB1699 Enrolled - 133 - LRB103 27684 AMQ 54061 b
4748+1 equal to all clean coal energy made available from
4749+2 the initial clean coal facility during such hour
4750+3 times a fraction, the numerator of which is such
4751+4 utility's retail market sales of electricity
4752+5 (expressed in kilowatthours sold) in the State
4753+6 during the prior calendar month and the
4754+7 denominator of which is the total retail market
4755+8 sales of electricity (expressed in kilowatthours
4756+9 sold) in the State by utilities during such prior
4757+10 month and the sales of electricity (expressed in
4758+11 kilowatthours sold) in the State by alternative
4759+12 retail electric suppliers during such prior month
4760+13 that are subject to the requirements of this
4761+14 subsection (d) and paragraph (5) of subsection (d)
4762+15 of Section 16-115 of the Public Utilities Act,
4763+16 provided that the amount purchased by the utility
4764+17 in any year will be limited by paragraph (2) of
4765+18 this subsection (d); and
4766+19 (iv) be considered pre-existing contracts in
4767+20 such utility's procurement plans for eligible
4768+21 retail customers;
4769+22 (C) contract for differences provisions, which
4770+23 shall:
4771+24 (i) require the utility party to such sourcing
4772+25 agreement to contract with the initial clean coal
4773+26 facility in each hour with respect to an amount of
4774+
4775+
4776+
4777+
4778+
4779+ SB1699 Enrolled - 133 - LRB103 27684 AMQ 54061 b
4780+
4781+
4782+SB1699 Enrolled- 134 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 134 - LRB103 27684 AMQ 54061 b
4783+ SB1699 Enrolled - 134 - LRB103 27684 AMQ 54061 b
4784+1 energy equal to all clean coal energy made
4785+2 available from the initial clean coal facility
4786+3 during such hour times a fraction, the numerator
4787+4 of which is such utility's retail market sales of
4788+5 electricity (expressed in kilowatthours sold) in
4789+6 the utility's service territory in the State
4790+7 during the prior calendar month and the
4791+8 denominator of which is the total retail market
4792+9 sales of electricity (expressed in kilowatthours
4793+10 sold) in the State by utilities during such prior
4794+11 month and the sales of electricity (expressed in
4795+12 kilowatthours sold) in the State by alternative
4796+13 retail electric suppliers during such prior month
4797+14 that are subject to the requirements of this
4798+15 subsection (d) and paragraph (5) of subsection (d)
4799+16 of Section 16-115 of the Public Utilities Act,
4800+17 provided that the amount paid by the utility in
4801+18 any year will be limited by paragraph (2) of this
4802+19 subsection (d);
4803+20 (ii) provide that the utility's payment
4804+21 obligation in respect of the quantity of
4805+22 electricity determined pursuant to the preceding
4806+23 clause (i) shall be limited to an amount equal to
4807+24 (1) the difference between the contract price
4808+25 determined pursuant to subparagraph (A) of
4809+26 paragraph (3) of this subsection (d) and the
4810+
4811+
4812+
4813+
4814+
4815+ SB1699 Enrolled - 134 - LRB103 27684 AMQ 54061 b
4816+
4817+
4818+SB1699 Enrolled- 135 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 135 - LRB103 27684 AMQ 54061 b
4819+ SB1699 Enrolled - 135 - LRB103 27684 AMQ 54061 b
4820+1 day-ahead price for electricity delivered to the
4821+2 regional transmission organization market of the
4822+3 utility that is party to such sourcing agreement
4823+4 (or any successor delivery point at which such
4824+5 utility's supply obligations are financially
4825+6 settled on an hourly basis) (the "reference
4826+7 price") on the day preceding the day on which the
4827+8 electricity is delivered to the initial clean coal
4828+9 facility busbar, multiplied by (2) the quantity of
4829+10 electricity determined pursuant to the preceding
4830+11 clause (i); and
4831+12 (iii) not require the utility to take physical
4832+13 delivery of the electricity produced by the
4833+14 facility;
4834+15 (D) general provisions, which shall:
4835+16 (i) specify a term of no more than 30 years,
4836+17 commencing on the commercial operation date of the
4837+18 facility;
4838+19 (ii) provide that utilities shall maintain
4839+20 adequate records documenting purchases under the
4840+21 sourcing agreements entered into to comply with
4841+22 this subsection (d) and shall file an accounting
4842+23 with the load forecast that must be filed with the
4843+24 Agency by July 15 of each year, in accordance with
4844+25 subsection (d) of Section 16-111.5 of the Public
4845+26 Utilities Act;
4846+
4847+
4848+
4849+
4850+
4851+ SB1699 Enrolled - 135 - LRB103 27684 AMQ 54061 b
4852+
4853+
4854+SB1699 Enrolled- 136 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 136 - LRB103 27684 AMQ 54061 b
4855+ SB1699 Enrolled - 136 - LRB103 27684 AMQ 54061 b
4856+1 (iii) provide that all costs associated with
4857+2 the initial clean coal facility will be
4858+3 periodically reported to the Federal Energy
4859+4 Regulatory Commission and to purchasers in
4860+5 accordance with applicable laws governing
4861+6 cost-based wholesale power contracts;
4862+7 (iv) permit the Illinois Power Agency to
4863+8 assume ownership of the initial clean coal
4864+9 facility, without monetary consideration and
4865+10 otherwise on reasonable terms acceptable to the
4866+11 Agency, if the Agency so requests no less than 3
4867+12 years prior to the end of the stated contract
4868+13 term;
4869+14 (v) require the owner of the initial clean
4870+15 coal facility to provide documentation to the
4871+16 Commission each year, starting in the facility's
4872+17 first year of commercial operation, accurately
4873+18 reporting the quantity of carbon emissions from
4874+19 the facility that have been captured and
4875+20 sequestered and report any quantities of carbon
4876+21 released from the site or sites at which carbon
4877+22 emissions were sequestered in prior years, based
4878+23 on continuous monitoring of such sites. If, in any
4879+24 year after the first year of commercial operation,
4880+25 the owner of the facility fails to demonstrate
4881+26 that the initial clean coal facility captured and
4882+
4883+
4884+
4885+
4886+
4887+ SB1699 Enrolled - 136 - LRB103 27684 AMQ 54061 b
4888+
4889+
4890+SB1699 Enrolled- 137 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 137 - LRB103 27684 AMQ 54061 b
4891+ SB1699 Enrolled - 137 - LRB103 27684 AMQ 54061 b
4892+1 sequestered at least 50% of the total carbon
4893+2 emissions that the facility would otherwise emit
4894+3 or that sequestration of emissions from prior
4895+4 years has failed, resulting in the release of
4896+5 carbon dioxide into the atmosphere, the owner of
4897+6 the facility must offset excess emissions. Any
4898+7 such carbon offsets must be permanent, additional,
4899+8 verifiable, real, located within the State of
4900+9 Illinois, and legally and practicably enforceable.
4901+10 The cost of such offsets for the facility that are
4902+11 not recoverable shall not exceed $15 million in
4903+12 any given year. No costs of any such purchases of
4904+13 carbon offsets may be recovered from a utility or
4905+14 its customers. All carbon offsets purchased for
4906+15 this purpose and any carbon emission credits
4907+16 associated with sequestration of carbon from the
4908+17 facility must be permanently retired. The initial
4909+18 clean coal facility shall not forfeit its
4910+19 designation as a clean coal facility if the
4911+20 facility fails to fully comply with the applicable
4912+21 carbon sequestration requirements in any given
4913+22 year, provided the requisite offsets are
4914+23 purchased. However, the Attorney General, on
4915+24 behalf of the People of the State of Illinois, may
4916+25 specifically enforce the facility's sequestration
4917+26 requirement and the other terms of this contract
4918+
4919+
4920+
4921+
4922+
4923+ SB1699 Enrolled - 137 - LRB103 27684 AMQ 54061 b
4924+
4925+
4926+SB1699 Enrolled- 138 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 138 - LRB103 27684 AMQ 54061 b
4927+ SB1699 Enrolled - 138 - LRB103 27684 AMQ 54061 b
4928+1 provision. Compliance with the sequestration
4929+2 requirements and offset purchase requirements
4930+3 specified in paragraph (3) of this subsection (d)
4931+4 shall be reviewed annually by an independent
4932+5 expert retained by the owner of the initial clean
4933+6 coal facility, with the advance written approval
4934+7 of the Attorney General. The Commission may, in
4935+8 the course of the review specified in item (vii),
4936+9 reduce the allowable return on equity for the
4937+10 facility if the facility willfully fails to comply
4938+11 with the carbon capture and sequestration
4939+12 requirements set forth in this item (v);
4940+13 (vi) include limits on, and accordingly
4941+14 provide for modification of, the amount the
4942+15 utility is required to source under the sourcing
4943+16 agreement consistent with paragraph (2) of this
4944+17 subsection (d);
4945+18 (vii) require Commission review: (1) to
4946+19 determine the justness, reasonableness, and
4947+20 prudence of the inputs to the formula referenced
4948+21 in subparagraphs (A)(i) through (A)(iii) of
4949+22 paragraph (3) of this subsection (d), prior to an
4950+23 adjustment in those inputs including, without
4951+24 limitation, the capital structure and return on
4952+25 equity, fuel costs, and other operations and
4953+26 maintenance costs and (2) to approve the costs to
4954+
4955+
4956+
4957+
4958+
4959+ SB1699 Enrolled - 138 - LRB103 27684 AMQ 54061 b
4960+
4961+
4962+SB1699 Enrolled- 139 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 139 - LRB103 27684 AMQ 54061 b
4963+ SB1699 Enrolled - 139 - LRB103 27684 AMQ 54061 b
4964+1 be passed through to customers under the sourcing
4965+2 agreement by which the utility satisfies its
4966+3 statutory obligations. Commission review shall
4967+4 occur no less than every 3 years, regardless of
4968+5 whether any adjustments have been proposed, and
4969+6 shall be completed within 9 months;
4970+7 (viii) limit the utility's obligation to such
4971+8 amount as the utility is allowed to recover
4972+9 through tariffs filed with the Commission,
4973+10 provided that neither the clean coal facility nor
4974+11 the utility waives any right to assert federal
4975+12 pre-emption or any other argument in response to a
4976+13 purported disallowance of recovery costs;
4977+14 (ix) limit the utility's or alternative retail
4978+15 electric supplier's obligation to incur any
4979+16 liability until such time as the facility is in
4980+17 commercial operation and generating power and
4981+18 energy and such power and energy is being
4982+19 delivered to the facility busbar;
4983+20 (x) provide that the owner or owners of the
4984+21 initial clean coal facility, which is the
4985+22 counterparty to such sourcing agreement, shall
4986+23 have the right from time to time to elect whether
4987+24 the obligations of the utility party thereto shall
4988+25 be governed by the power purchase provisions or
4989+26 the contract for differences provisions;
4990+
4991+
4992+
4993+
4994+
4995+ SB1699 Enrolled - 139 - LRB103 27684 AMQ 54061 b
4996+
4997+
4998+SB1699 Enrolled- 140 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 140 - LRB103 27684 AMQ 54061 b
4999+ SB1699 Enrolled - 140 - LRB103 27684 AMQ 54061 b
5000+1 (xi) append documentation showing that the
5001+2 formula rate and contract, insofar as they relate
5002+3 to the power purchase provisions, have been
5003+4 approved by the Federal Energy Regulatory
5004+5 Commission pursuant to Section 205 of the Federal
5005+6 Power Act;
5006+7 (xii) provide that any changes to the terms of
5007+8 the contract, insofar as such changes relate to
5008+9 the power purchase provisions, are subject to
5009+10 review under the public interest standard applied
5010+11 by the Federal Energy Regulatory Commission
5011+12 pursuant to Sections 205 and 206 of the Federal
5012+13 Power Act; and
5013+14 (xiii) conform with customary lender
5014+15 requirements in power purchase agreements used as
5015+16 the basis for financing non-utility generators.
5016+17 (4) Effective date of sourcing agreements with the
5017+18 initial clean coal facility. Any proposed sourcing
5018+19 agreement with the initial clean coal facility shall not
5019+20 become effective unless the following reports are prepared
5020+21 and submitted and authorizations and approvals obtained:
5021+22 (i) Facility cost report. The owner of the initial
5022+23 clean coal facility shall submit to the Commission,
5023+24 the Agency, and the General Assembly a front-end
5024+25 engineering and design study, a facility cost report,
5025+26 method of financing (including but not limited to
5026+
5027+
5028+
5029+
5030+
5031+ SB1699 Enrolled - 140 - LRB103 27684 AMQ 54061 b
5032+
5033+
5034+SB1699 Enrolled- 141 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 141 - LRB103 27684 AMQ 54061 b
5035+ SB1699 Enrolled - 141 - LRB103 27684 AMQ 54061 b
5036+1 structure and associated costs), and an operating and
5037+2 maintenance cost quote for the facility (collectively
5038+3 "facility cost report"), which shall be prepared in
5039+4 accordance with the requirements of this paragraph (4)
5040+5 of subsection (d) of this Section, and shall provide
5041+6 the Commission and the Agency access to the work
5042+7 papers, relied upon documents, and any other backup
5043+8 documentation related to the facility cost report.
5044+9 (ii) Commission report. Within 6 months following
5045+10 receipt of the facility cost report, the Commission,
5046+11 in consultation with the Agency, shall submit a report
5047+12 to the General Assembly setting forth its analysis of
5048+13 the facility cost report. Such report shall include,
5049+14 but not be limited to, a comparison of the costs
5050+15 associated with electricity generated by the initial
5051+16 clean coal facility to the costs associated with
5052+17 electricity generated by other types of generation
5053+18 facilities, an analysis of the rate impacts on
5054+19 residential and small business customers over the life
5055+20 of the sourcing agreements, and an analysis of the
5056+21 likelihood that the initial clean coal facility will
5057+22 commence commercial operation by and be delivering
5058+23 power to the facility's busbar by 2016. To assist in
5059+24 the preparation of its report, the Commission, in
5060+25 consultation with the Agency, may hire one or more
5061+26 experts or consultants, the costs of which shall be
5062+
5063+
5064+
5065+
5066+
5067+ SB1699 Enrolled - 141 - LRB103 27684 AMQ 54061 b
5068+
5069+
5070+SB1699 Enrolled- 142 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 142 - LRB103 27684 AMQ 54061 b
5071+ SB1699 Enrolled - 142 - LRB103 27684 AMQ 54061 b
5072+1 paid for by the owner of the initial clean coal
5073+2 facility. The Commission and Agency may begin the
5074+3 process of selecting such experts or consultants prior
5075+4 to receipt of the facility cost report.
5076+5 (iii) General Assembly approval. The proposed
5077+6 sourcing agreements shall not take effect unless,
5078+7 based on the facility cost report and the Commission's
5079+8 report, the General Assembly enacts authorizing
5080+9 legislation approving (A) the projected price, stated
5081+10 in cents per kilowatthour, to be charged for
5082+11 electricity generated by the initial clean coal
5083+12 facility, (B) the projected impact on residential and
5084+13 small business customers' bills over the life of the
5085+14 sourcing agreements, and (C) the maximum allowable
5086+15 return on equity for the project; and
5087+16 (iv) Commission review. If the General Assembly
5088+17 enacts authorizing legislation pursuant to
5089+18 subparagraph (iii) approving a sourcing agreement, the
5090+19 Commission shall, within 90 days of such enactment,
5091+20 complete a review of such sourcing agreement. During
5092+21 such time period, the Commission shall implement any
5093+22 directive of the General Assembly, resolve any
5094+23 disputes between the parties to the sourcing agreement
5095+24 concerning the terms of such agreement, approve the
5096+25 form of such agreement, and issue an order finding
5097+26 that the sourcing agreement is prudent and reasonable.
5098+
5099+
5100+
5101+
5102+
5103+ SB1699 Enrolled - 142 - LRB103 27684 AMQ 54061 b
5104+
5105+
5106+SB1699 Enrolled- 143 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 143 - LRB103 27684 AMQ 54061 b
5107+ SB1699 Enrolled - 143 - LRB103 27684 AMQ 54061 b
5108+1 The facility cost report shall be prepared as follows:
5109+2 (A) The facility cost report shall be prepared by
5110+3 duly licensed engineering and construction firms
5111+4 detailing the estimated capital costs payable to one
5112+5 or more contractors or suppliers for the engineering,
5113+6 procurement and construction of the components
5114+7 comprising the initial clean coal facility and the
5115+8 estimated costs of operation and maintenance of the
5116+9 facility. The facility cost report shall include:
5117+10 (i) an estimate of the capital cost of the
5118+11 core plant based on one or more front end
5119+12 engineering and design studies for the
5120+13 gasification island and related facilities. The
5121+14 core plant shall include all civil, structural,
5122+15 mechanical, electrical, control, and safety
5123+16 systems.
5124+17 (ii) an estimate of the capital cost of the
5125+18 balance of the plant, including any capital costs
5126+19 associated with sequestration of carbon dioxide
5127+20 emissions and all interconnects and interfaces
5128+21 required to operate the facility, such as
5129+22 transmission of electricity, construction or
5130+23 backfeed power supply, pipelines to transport
5131+24 substitute natural gas or carbon dioxide, potable
5132+25 water supply, natural gas supply, water supply,
5133+26 water discharge, landfill, access roads, and coal
5134+
5135+
5136+
5137+
5138+
5139+ SB1699 Enrolled - 143 - LRB103 27684 AMQ 54061 b
5140+
5141+
5142+SB1699 Enrolled- 144 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 144 - LRB103 27684 AMQ 54061 b
5143+ SB1699 Enrolled - 144 - LRB103 27684 AMQ 54061 b
5144+1 delivery.
5145+2 The quoted construction costs shall be expressed
5146+3 in nominal dollars as of the date that the quote is
5147+4 prepared and shall include capitalized financing costs
5148+5 during construction, taxes, insurance, and other
5149+6 owner's costs, and an assumed escalation in materials
5150+7 and labor beyond the date as of which the construction
5151+8 cost quote is expressed.
5152+9 (B) The front end engineering and design study for
5153+10 the gasification island and the cost study for the
5154+11 balance of plant shall include sufficient design work
5155+12 to permit quantification of major categories of
5156+13 materials, commodities and labor hours, and receipt of
5157+14 quotes from vendors of major equipment required to
5158+15 construct and operate the clean coal facility.
5159+16 (C) The facility cost report shall also include an
5160+17 operating and maintenance cost quote that will provide
5161+18 the estimated cost of delivered fuel, personnel,
5162+19 maintenance contracts, chemicals, catalysts,
5163+20 consumables, spares, and other fixed and variable
5164+21 operations and maintenance costs. The delivered fuel
5165+22 cost estimate will be provided by a recognized third
5166+23 party expert or experts in the fuel and transportation
5167+24 industries. The balance of the operating and
5168+25 maintenance cost quote, excluding delivered fuel
5169+26 costs, will be developed based on the inputs provided
5170+
5171+
5172+
5173+
5174+
5175+ SB1699 Enrolled - 144 - LRB103 27684 AMQ 54061 b
5176+
5177+
5178+SB1699 Enrolled- 145 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 145 - LRB103 27684 AMQ 54061 b
5179+ SB1699 Enrolled - 145 - LRB103 27684 AMQ 54061 b
5180+1 by duly licensed engineering and construction firms
5181+2 performing the construction cost quote, potential
5182+3 vendors under long-term service agreements and plant
5183+4 operating agreements, or recognized third party plant
5184+5 operator or operators.
5185+6 The operating and maintenance cost quote
5186+7 (including the cost of the front end engineering and
5187+8 design study) shall be expressed in nominal dollars as
5188+9 of the date that the quote is prepared and shall
5189+10 include taxes, insurance, and other owner's costs, and
5190+11 an assumed escalation in materials and labor beyond
5191+12 the date as of which the operating and maintenance
5192+13 cost quote is expressed.
5193+14 (D) The facility cost report shall also include an
5194+15 analysis of the initial clean coal facility's ability
5195+16 to deliver power and energy into the applicable
5196+17 regional transmission organization markets and an
5197+18 analysis of the expected capacity factor for the
5198+19 initial clean coal facility.
5199+20 (E) Amounts paid to third parties unrelated to the
5200+21 owner or owners of the initial clean coal facility to
5201+22 prepare the core plant construction cost quote,
5202+23 including the front end engineering and design study,
5203+24 and the operating and maintenance cost quote will be
5204+25 reimbursed through Coal Development Bonds.
5205+26 (5) Re-powering and retrofitting coal-fired power
5206+
5207+
5208+
5209+
5210+
5211+ SB1699 Enrolled - 145 - LRB103 27684 AMQ 54061 b
5212+
5213+
5214+SB1699 Enrolled- 146 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 146 - LRB103 27684 AMQ 54061 b
5215+ SB1699 Enrolled - 146 - LRB103 27684 AMQ 54061 b
5216+1 plants previously owned by Illinois utilities to qualify
5217+2 as clean coal facilities. During the 2009 procurement
5218+3 planning process and thereafter, the Agency and the
5219+4 Commission shall consider sourcing agreements covering
5220+5 electricity generated by power plants that were previously
5221+6 owned by Illinois utilities and that have been or will be
5222+7 converted into clean coal facilities, as defined by
5223+8 Section 1-10 of this Act. Pursuant to such procurement
5224+9 planning process, the owners of such facilities may
5225+10 propose to the Agency sourcing agreements with utilities
5226+11 and alternative retail electric suppliers required to
5227+12 comply with subsection (d) of this Section and item (5) of
5228+13 subsection (d) of Section 16-115 of the Public Utilities
5229+14 Act, covering electricity generated by such facilities. In
5230+15 the case of sourcing agreements that are power purchase
5231+16 agreements, the contract price for electricity sales shall
5232+17 be established on a cost of service basis. In the case of
5233+18 sourcing agreements that are contracts for differences,
5234+19 the contract price from which the reference price is
5235+20 subtracted shall be established on a cost of service
5236+21 basis. The Agency and the Commission may approve any such
5237+22 utility sourcing agreements that do not exceed cost-based
5238+23 benchmarks developed by the procurement administrator, in
5239+24 consultation with the Commission staff, Agency staff and
5240+25 the procurement monitor, subject to Commission review and
5241+26 approval. The Commission shall have authority to inspect
5242+
5243+
5244+
5245+
5246+
5247+ SB1699 Enrolled - 146 - LRB103 27684 AMQ 54061 b
5248+
5249+
5250+SB1699 Enrolled- 147 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 147 - LRB103 27684 AMQ 54061 b
5251+ SB1699 Enrolled - 147 - LRB103 27684 AMQ 54061 b
5252+1 all books and records associated with these clean coal
5253+2 facilities during the term of any such contract.
5254+3 (6) Costs incurred under this subsection (d) or
5255+4 pursuant to a contract entered into under this subsection
5256+5 (d) shall be deemed prudently incurred and reasonable in
5257+6 amount and the electric utility shall be entitled to full
5258+7 cost recovery pursuant to the tariffs filed with the
5259+8 Commission.
5260+9 (d-5) Zero emission standard.
5261+10 (1) Beginning with the delivery year commencing on
5262+11 June 1, 2017, the Agency shall, for electric utilities
5263+12 that serve at least 100,000 retail customers in this
5264+13 State, procure contracts with zero emission facilities
5265+14 that are reasonably capable of generating cost-effective
5266+15 zero emission credits in an amount approximately equal to
5267+16 16% of the actual amount of electricity delivered by each
5268+17 electric utility to retail customers in the State during
5269+18 calendar year 2014. For an electric utility serving fewer
5270+19 than 100,000 retail customers in this State that
5271+20 requested, under Section 16-111.5 of the Public Utilities
5272+21 Act, that the Agency procure power and energy for all or a
5273+22 portion of the utility's Illinois load for the delivery
5274+23 year commencing June 1, 2016, the Agency shall procure
5275+24 contracts with zero emission facilities that are
5276+25 reasonably capable of generating cost-effective zero
5277+26 emission credits in an amount approximately equal to 16%
5278+
5279+
5280+
5281+
5282+
5283+ SB1699 Enrolled - 147 - LRB103 27684 AMQ 54061 b
5284+
5285+
5286+SB1699 Enrolled- 148 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 148 - LRB103 27684 AMQ 54061 b
5287+ SB1699 Enrolled - 148 - LRB103 27684 AMQ 54061 b
5288+1 of the portion of power and energy to be procured by the
5289+2 Agency for the utility. The duration of the contracts
5290+3 procured under this subsection (d-5) shall be for a term
5291+4 of 10 years ending May 31, 2027. The quantity of zero
5292+5 emission credits to be procured under the contracts shall
5293+6 be all of the zero emission credits generated by the zero
5294+7 emission facility in each delivery year; however, if the
5295+8 zero emission facility is owned by more than one entity,
5296+9 then the quantity of zero emission credits to be procured
5297+10 under the contracts shall be the amount of zero emission
5298+11 credits that are generated from the portion of the zero
5299+12 emission facility that is owned by the winning supplier.
5300+13 The 16% value identified in this paragraph (1) is the
5301+14 average of the percentage targets in subparagraph (B) of
5302+15 paragraph (1) of subsection (c) of this Section for the 5
5303+16 delivery years beginning June 1, 2017.
5304+17 The procurement process shall be subject to the
5305+18 following provisions:
5306+19 (A) Those zero emission facilities that intend to
5307+20 participate in the procurement shall submit to the
5308+21 Agency the following eligibility information for each
5309+22 zero emission facility on or before the date
5310+23 established by the Agency:
5311+24 (i) the in-service date and remaining useful
5312+25 life of the zero emission facility;
5313+26 (ii) the amount of power generated annually
5314+
5315+
5316+
5317+
5318+
5319+ SB1699 Enrolled - 148 - LRB103 27684 AMQ 54061 b
5320+
5321+
5322+SB1699 Enrolled- 149 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 149 - LRB103 27684 AMQ 54061 b
5323+ SB1699 Enrolled - 149 - LRB103 27684 AMQ 54061 b
5324+1 for each of the years 2005 through 2015, and the
5325+2 projected zero emission credits to be generated
5326+3 over the remaining useful life of the zero
5327+4 emission facility, which shall be used to
5328+5 determine the capability of each facility;
5329+6 (iii) the annual zero emission facility cost
5330+7 projections, expressed on a per megawatthour
5331+8 basis, over the next 6 delivery years, which shall
5332+9 include the following: operation and maintenance
5333+10 expenses; fully allocated overhead costs, which
5334+11 shall be allocated using the methodology developed
5335+12 by the Institute for Nuclear Power Operations;
5336+13 fuel expenditures; non-fuel capital expenditures;
5337+14 spent fuel expenditures; a return on working
5338+15 capital; the cost of operational and market risks
5339+16 that could be avoided by ceasing operation; and
5340+17 any other costs necessary for continued
5341+18 operations, provided that "necessary" means, for
5342+19 purposes of this item (iii), that the costs could
5343+20 reasonably be avoided only by ceasing operations
5344+21 of the zero emission facility; and
5345+22 (iv) a commitment to continue operating, for
5346+23 the duration of the contract or contracts executed
5347+24 under the procurement held under this subsection
5348+25 (d-5), the zero emission facility that produces
5349+26 the zero emission credits to be procured in the
5350+
5351+
5352+
5353+
5354+
5355+ SB1699 Enrolled - 149 - LRB103 27684 AMQ 54061 b
5356+
5357+
5358+SB1699 Enrolled- 150 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 150 - LRB103 27684 AMQ 54061 b
5359+ SB1699 Enrolled - 150 - LRB103 27684 AMQ 54061 b
5360+1 procurement.
5361+2 The information described in item (iii) of this
5362+3 subparagraph (A) may be submitted on a confidential
5363+4 basis and shall be treated and maintained by the
5364+5 Agency, the procurement administrator, and the
5365+6 Commission as confidential and proprietary and exempt
5366+7 from disclosure under subparagraphs (a) and (g) of
5367+8 paragraph (1) of Section 7 of the Freedom of
5368+9 Information Act. The Office of Attorney General shall
5369+10 have access to, and maintain the confidentiality of,
5370+11 such information pursuant to Section 6.5 of the
5371+12 Attorney General Act.
5372+13 (B) The price for each zero emission credit
5373+14 procured under this subsection (d-5) for each delivery
5374+15 year shall be in an amount that equals the Social Cost
5375+16 of Carbon, expressed on a price per megawatthour
5376+17 basis. However, to ensure that the procurement remains
5377+18 affordable to retail customers in this State if
5378+19 electricity prices increase, the price in an
5379+20 applicable delivery year shall be reduced below the
5380+21 Social Cost of Carbon by the amount ("Price
5381+22 Adjustment") by which the market price index for the
5382+23 applicable delivery year exceeds the baseline market
5383+24 price index for the consecutive 12-month period ending
5384+25 May 31, 2016. If the Price Adjustment is greater than
5385+26 or equal to the Social Cost of Carbon in an applicable
5386+
5387+
5388+
5389+
5390+
5391+ SB1699 Enrolled - 150 - LRB103 27684 AMQ 54061 b
5392+
5393+
5394+SB1699 Enrolled- 151 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 151 - LRB103 27684 AMQ 54061 b
5395+ SB1699 Enrolled - 151 - LRB103 27684 AMQ 54061 b
5396+1 delivery year, then no payments shall be due in that
5397+2 delivery year. The components of this calculation are
5398+3 defined as follows:
5399+4 (i) Social Cost of Carbon: The Social Cost of
5400+5 Carbon is $16.50 per megawatthour, which is based
5401+6 on the U.S. Interagency Working Group on Social
5402+7 Cost of Carbon's price in the August 2016
5403+8 Technical Update using a 3% discount rate,
5404+9 adjusted for inflation for each year of the
5405+10 program. Beginning with the delivery year
5406+11 commencing June 1, 2023, the price per
5407+12 megawatthour shall increase by $1 per
5408+13 megawatthour, and continue to increase by an
5409+14 additional $1 per megawatthour each delivery year
5410+15 thereafter.
5411+16 (ii) Baseline market price index: The baseline
5412+17 market price index for the consecutive 12-month
5413+18 period ending May 31, 2016 is $31.40 per
5414+19 megawatthour, which is based on the sum of (aa)
5415+20 the average day-ahead energy price across all
5416+21 hours of such 12-month period at the PJM
5417+22 Interconnection LLC Northern Illinois Hub, (bb)
5418+23 50% multiplied by the Base Residual Auction, or
5419+24 its successor, capacity price for the rest of the
5420+25 RTO zone group determined by PJM Interconnection
5421+26 LLC, divided by 24 hours per day, and (cc) 50%
5422+
5423+
5424+
5425+
5426+
5427+ SB1699 Enrolled - 151 - LRB103 27684 AMQ 54061 b
5428+
5429+
5430+SB1699 Enrolled- 152 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 152 - LRB103 27684 AMQ 54061 b
5431+ SB1699 Enrolled - 152 - LRB103 27684 AMQ 54061 b
5432+1 multiplied by the Planning Resource Auction, or
5433+2 its successor, capacity price for Zone 4
5434+3 determined by the Midcontinent Independent System
5435+4 Operator, Inc., divided by 24 hours per day.
5436+5 (iii) Market price index: The market price
5437+6 index for a delivery year shall be the sum of
5438+7 projected energy prices and projected capacity
5439+8 prices determined as follows:
5440+9 (aa) Projected energy prices: the
5441+10 projected energy prices for the applicable
5442+11 delivery year shall be calculated once for the
5443+12 year using the forward market price for the
5444+13 PJM Interconnection, LLC Northern Illinois
5445+14 Hub. The forward market price shall be
5446+15 calculated as follows: the energy forward
5447+16 prices for each month of the applicable
5448+17 delivery year averaged for each trade date
5449+18 during the calendar year immediately preceding
5450+19 that delivery year to produce a single energy
5451+20 forward price for the delivery year. The
5452+21 forward market price calculation shall use
5453+22 data published by the Intercontinental
5454+23 Exchange, or its successor.
5455+24 (bb) Projected capacity prices:
5456+25 (I) For the delivery years commencing
5457+26 June 1, 2017, June 1, 2018, and June 1,
5458+
5459+
5460+
5461+
5462+
5463+ SB1699 Enrolled - 152 - LRB103 27684 AMQ 54061 b
5464+
5465+
5466+SB1699 Enrolled- 153 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 153 - LRB103 27684 AMQ 54061 b
5467+ SB1699 Enrolled - 153 - LRB103 27684 AMQ 54061 b
5468+1 2019, the projected capacity price shall
5469+2 be equal to the sum of (1) 50% multiplied
5470+3 by the Base Residual Auction, or its
5471+4 successor, price for the rest of the RTO
5472+5 zone group as determined by PJM
5473+6 Interconnection LLC, divided by 24 hours
5474+7 per day and, (2) 50% multiplied by the
5475+8 resource auction price determined in the
5476+9 resource auction administered by the
5477+10 Midcontinent Independent System Operator,
5478+11 Inc., in which the largest percentage of
5479+12 load cleared for Local Resource Zone 4,
5480+13 divided by 24 hours per day, and where
5481+14 such price is determined by the
5482+15 Midcontinent Independent System Operator,
5483+16 Inc.
5484+17 (II) For the delivery year commencing
5485+18 June 1, 2020, and each year thereafter,
5486+19 the projected capacity price shall be
5487+20 equal to the sum of (1) 50% multiplied by
5488+21 the Base Residual Auction, or its
5489+22 successor, price for the ComEd zone as
5490+23 determined by PJM Interconnection LLC,
5491+24 divided by 24 hours per day, and (2) 50%
5492+25 multiplied by the resource auction price
5493+26 determined in the resource auction
5494+
5495+
5496+
5497+
5498+
5499+ SB1699 Enrolled - 153 - LRB103 27684 AMQ 54061 b
5500+
5501+
5502+SB1699 Enrolled- 154 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 154 - LRB103 27684 AMQ 54061 b
5503+ SB1699 Enrolled - 154 - LRB103 27684 AMQ 54061 b
5504+1 administered by the Midcontinent
5505+2 Independent System Operator, Inc., in
5506+3 which the largest percentage of load
5507+4 cleared for Local Resource Zone 4, divided
5508+5 by 24 hours per day, and where such price
5509+6 is determined by the Midcontinent
5510+7 Independent System Operator, Inc.
5511+8 For purposes of this subsection (d-5):
5512+9 "Rest of the RTO" and "ComEd Zone" shall have
5513+10 the meaning ascribed to them by PJM
5514+11 Interconnection, LLC.
5515+12 "RTO" means regional transmission
5516+13 organization.
5517+14 (C) No later than 45 days after June 1, 2017 (the
5518+15 effective date of Public Act 99-906), the Agency shall
5519+16 publish its proposed zero emission standard
5520+17 procurement plan. The plan shall be consistent with
5521+18 the provisions of this paragraph (1) and shall provide
5522+19 that winning bids shall be selected based on public
5523+20 interest criteria that include, but are not limited
5524+21 to, minimizing carbon dioxide emissions that result
5525+22 from electricity consumed in Illinois and minimizing
5526+23 sulfur dioxide, nitrogen oxide, and particulate matter
5527+24 emissions that adversely affect the citizens of this
5528+25 State. In particular, the selection of winning bids
5529+26 shall take into account the incremental environmental
5530+
5531+
5532+
5533+
5534+
5535+ SB1699 Enrolled - 154 - LRB103 27684 AMQ 54061 b
5536+
5537+
5538+SB1699 Enrolled- 155 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 155 - LRB103 27684 AMQ 54061 b
5539+ SB1699 Enrolled - 155 - LRB103 27684 AMQ 54061 b
5540+1 benefits resulting from the procurement, such as any
5541+2 existing environmental benefits that are preserved by
5542+3 the procurements held under Public Act 99-906 and
5543+4 would cease to exist if the procurements were not
5544+5 held, including the preservation of zero emission
5545+6 facilities. The plan shall also describe in detail how
5546+7 each public interest factor shall be considered and
5547+8 weighted in the bid selection process to ensure that
5548+9 the public interest criteria are applied to the
5549+10 procurement and given full effect.
5550+11 For purposes of developing the plan, the Agency
5551+12 shall consider any reports issued by a State agency,
5552+13 board, or commission under House Resolution 1146 of
5553+14 the 98th General Assembly and paragraph (4) of
5554+15 subsection (d) of this Section, as well as publicly
5555+16 available analyses and studies performed by or for
5556+17 regional transmission organizations that serve the
5557+18 State and their independent market monitors.
5558+19 Upon publishing of the zero emission standard
5559+20 procurement plan, copies of the plan shall be posted
5560+21 and made publicly available on the Agency's website.
5561+22 All interested parties shall have 10 days following
5562+23 the date of posting to provide comment to the Agency on
5563+24 the plan. All comments shall be posted to the Agency's
5564+25 website. Following the end of the comment period, but
5565+26 no more than 60 days later than June 1, 2017 (the
5566+
5567+
5568+
5569+
5570+
5571+ SB1699 Enrolled - 155 - LRB103 27684 AMQ 54061 b
5572+
5573+
5574+SB1699 Enrolled- 156 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 156 - LRB103 27684 AMQ 54061 b
5575+ SB1699 Enrolled - 156 - LRB103 27684 AMQ 54061 b
5576+1 effective date of Public Act 99-906), the Agency shall
5577+2 revise the plan as necessary based on the comments
5578+3 received and file its zero emission standard
5579+4 procurement plan with the Commission.
5580+5 If the Commission determines that the plan will
5581+6 result in the procurement of cost-effective zero
5582+7 emission credits, then the Commission shall, after
5583+8 notice and hearing, but no later than 45 days after the
5584+9 Agency filed the plan, approve the plan or approve
5585+10 with modification. For purposes of this subsection
5586+11 (d-5), "cost effective" means the projected costs of
5587+12 procuring zero emission credits from zero emission
5588+13 facilities do not cause the limit stated in paragraph
5589+14 (2) of this subsection to be exceeded.
5590+15 (C-5) As part of the Commission's review and
5591+16 acceptance or rejection of the procurement results,
5592+17 the Commission shall, in its public notice of
5593+18 successful bidders:
5594+19 (i) identify how the winning bids satisfy the
5595+20 public interest criteria described in subparagraph
5596+21 (C) of this paragraph (1) of minimizing carbon
5597+22 dioxide emissions that result from electricity
5598+23 consumed in Illinois and minimizing sulfur
5599+24 dioxide, nitrogen oxide, and particulate matter
5600+25 emissions that adversely affect the citizens of
5601+26 this State;
5602+
5603+
5604+
5605+
5606+
5607+ SB1699 Enrolled - 156 - LRB103 27684 AMQ 54061 b
5608+
5609+
5610+SB1699 Enrolled- 157 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 157 - LRB103 27684 AMQ 54061 b
5611+ SB1699 Enrolled - 157 - LRB103 27684 AMQ 54061 b
5612+1 (ii) specifically address how the selection of
5613+2 winning bids takes into account the incremental
5614+3 environmental benefits resulting from the
5615+4 procurement, including any existing environmental
5616+5 benefits that are preserved by the procurements
5617+6 held under Public Act 99-906 and would have ceased
5618+7 to exist if the procurements had not been held,
5619+8 such as the preservation of zero emission
5620+9 facilities;
5621+10 (iii) quantify the environmental benefit of
5622+11 preserving the resources identified in item (ii)
5623+12 of this subparagraph (C-5), including the
5624+13 following:
5625+14 (aa) the value of avoided greenhouse gas
5626+15 emissions measured as the product of the zero
5627+16 emission facilities' output over the contract
5628+17 term multiplied by the U.S. Environmental
5629+18 Protection Agency eGrid subregion carbon
5630+19 dioxide emission rate and the U.S. Interagency
5631+20 Working Group on Social Cost of Carbon's price
5632+21 in the August 2016 Technical Update using a 3%
5633+22 discount rate, adjusted for inflation for each
5634+23 delivery year; and
5635+24 (bb) the costs of replacement with other
5636+25 zero carbon dioxide resources, including wind
5637+26 and photovoltaic, based upon the simple
5638+
5639+
5640+
5641+
5642+
5643+ SB1699 Enrolled - 157 - LRB103 27684 AMQ 54061 b
5644+
5645+
5646+SB1699 Enrolled- 158 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 158 - LRB103 27684 AMQ 54061 b
5647+ SB1699 Enrolled - 158 - LRB103 27684 AMQ 54061 b
5648+1 average of the following:
5649+2 (I) the price, or if there is more
5650+3 than one price, the average of the prices,
5651+4 paid for renewable energy credits from new
5652+5 utility-scale wind projects in the
5653+6 procurement events specified in item (i)
5654+7 of subparagraph (G) of paragraph (1) of
5655+8 subsection (c) of this Section; and
5656+9 (II) the price, or if there is more
5657+10 than one price, the average of the prices,
5658+11 paid for renewable energy credits from new
5659+12 utility-scale solar projects and
5660+13 brownfield site photovoltaic projects in
5661+14 the procurement events specified in item
5662+15 (ii) of subparagraph (G) of paragraph (1)
5663+16 of subsection (c) of this Section and,
5664+17 after January 1, 2015, renewable energy
5665+18 credits from photovoltaic distributed
5666+19 generation projects in procurement events
5667+20 held under subsection (c) of this Section.
5668+21 Each utility shall enter into binding contractual
5669+22 arrangements with the winning suppliers.
5670+23 The procurement described in this subsection
5671+24 (d-5), including, but not limited to, the execution of
5672+25 all contracts procured, shall be completed no later
5673+26 than May 10, 2017. Based on the effective date of
5674+
5675+
5676+
5677+
5678+
5679+ SB1699 Enrolled - 158 - LRB103 27684 AMQ 54061 b
5680+
5681+
5682+SB1699 Enrolled- 159 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 159 - LRB103 27684 AMQ 54061 b
5683+ SB1699 Enrolled - 159 - LRB103 27684 AMQ 54061 b
5684+1 Public Act 99-906, the Agency and Commission may, as
5685+2 appropriate, modify the various dates and timelines
5686+3 under this subparagraph and subparagraphs (C) and (D)
5687+4 of this paragraph (1). The procurement and plan
5688+5 approval processes required by this subsection (d-5)
5689+6 shall be conducted in conjunction with the procurement
5690+7 and plan approval processes required by subsection (c)
5691+8 of this Section and Section 16-111.5 of the Public
5692+9 Utilities Act, to the extent practicable.
5693+10 Notwithstanding whether a procurement event is
5694+11 conducted under Section 16-111.5 of the Public
5695+12 Utilities Act, the Agency shall immediately initiate a
5696+13 procurement process on June 1, 2017 (the effective
5697+14 date of Public Act 99-906).
5698+15 (D) Following the procurement event described in
5699+16 this paragraph (1) and consistent with subparagraph
5700+17 (B) of this paragraph (1), the Agency shall calculate
5701+18 the payments to be made under each contract for the
5702+19 next delivery year based on the market price index for
5703+20 that delivery year. The Agency shall publish the
5704+21 payment calculations no later than May 25, 2017 and
5705+22 every May 25 thereafter.
5706+23 (E) Notwithstanding the requirements of this
5707+24 subsection (d-5), the contracts executed under this
5708+25 subsection (d-5) shall provide that the zero emission
5709+26 facility may, as applicable, suspend or terminate
5710+
5711+
5712+
5713+
5714+
5715+ SB1699 Enrolled - 159 - LRB103 27684 AMQ 54061 b
5716+
5717+
5718+SB1699 Enrolled- 160 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 160 - LRB103 27684 AMQ 54061 b
5719+ SB1699 Enrolled - 160 - LRB103 27684 AMQ 54061 b
5720+1 performance under the contracts in the following
5721+2 instances:
5722+3 (i) A zero emission facility shall be excused
5723+4 from its performance under the contract for any
5724+5 cause beyond the control of the resource,
5725+6 including, but not restricted to, acts of God,
5726+7 flood, drought, earthquake, storm, fire,
5727+8 lightning, epidemic, war, riot, civil disturbance
5728+9 or disobedience, labor dispute, labor or material
5729+10 shortage, sabotage, acts of public enemy,
5730+11 explosions, orders, regulations or restrictions
5731+12 imposed by governmental, military, or lawfully
5732+13 established civilian authorities, which, in any of
5733+14 the foregoing cases, by exercise of commercially
5734+15 reasonable efforts the zero emission facility
5735+16 could not reasonably have been expected to avoid,
5736+17 and which, by the exercise of commercially
5737+18 reasonable efforts, it has been unable to
5738+19 overcome. In such event, the zero emission
5739+20 facility shall be excused from performance for the
5740+21 duration of the event, including, but not limited
5741+22 to, delivery of zero emission credits, and no
5742+23 payment shall be due to the zero emission facility
5743+24 during the duration of the event.
5744+25 (ii) A zero emission facility shall be
5745+26 permitted to terminate the contract if legislation
5746+
5747+
5748+
5749+
5750+
5751+ SB1699 Enrolled - 160 - LRB103 27684 AMQ 54061 b
5752+
5753+
5754+SB1699 Enrolled- 161 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 161 - LRB103 27684 AMQ 54061 b
5755+ SB1699 Enrolled - 161 - LRB103 27684 AMQ 54061 b
5756+1 is enacted into law by the General Assembly that
5757+2 imposes or authorizes a new tax, special
5758+3 assessment, or fee on the generation of
5759+4 electricity, the ownership or leasehold of a
5760+5 generating unit, or the privilege or occupation of
5761+6 such generation, ownership, or leasehold of
5762+7 generation units by a zero emission facility.
5763+8 However, the provisions of this item (ii) do not
5764+9 apply to any generally applicable tax, special
5765+10 assessment or fee, or requirements imposed by
5766+11 federal law.
5767+12 (iii) A zero emission facility shall be
5768+13 permitted to terminate the contract in the event
5769+14 that the resource requires capital expenditures in
5770+15 excess of $40,000,000 that were neither known nor
5771+16 reasonably foreseeable at the time it executed the
5772+17 contract and that a prudent owner or operator of
5773+18 such resource would not undertake.
5774+19 (iv) A zero emission facility shall be
5775+20 permitted to terminate the contract in the event
5776+21 the Nuclear Regulatory Commission terminates the
5777+22 resource's license.
5778+23 (F) If the zero emission facility elects to
5779+24 terminate a contract under subparagraph (E) of this
5780+25 paragraph (1), then the Commission shall reopen the
5781+26 docket in which the Commission approved the zero
5782+
5783+
5784+
5785+
5786+
5787+ SB1699 Enrolled - 161 - LRB103 27684 AMQ 54061 b
5788+
5789+
5790+SB1699 Enrolled- 162 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 162 - LRB103 27684 AMQ 54061 b
5791+ SB1699 Enrolled - 162 - LRB103 27684 AMQ 54061 b
5792+1 emission standard procurement plan under subparagraph
5793+2 (C) of this paragraph (1) and, after notice and
5794+3 hearing, enter an order acknowledging the contract
5795+4 termination election if such termination is consistent
5796+5 with the provisions of this subsection (d-5).
5797+6 (2) For purposes of this subsection (d-5), the amount
5798+7 paid per kilowatthour means the total amount paid for
5799+8 electric service expressed on a per kilowatthour basis.
5800+9 For purposes of this subsection (d-5), the total amount
5801+10 paid for electric service includes, without limitation,
5802+11 amounts paid for supply, transmission, distribution,
5803+12 surcharges, and add-on taxes.
5804+13 Notwithstanding the requirements of this subsection
5805+14 (d-5), the contracts executed under this subsection (d-5)
5806+15 shall provide that the total of zero emission credits
5807+16 procured under a procurement plan shall be subject to the
5808+17 limitations of this paragraph (2). For each delivery year,
5809+18 the contractual volume receiving payments in such year
5810+19 shall be reduced for all retail customers based on the
5811+20 amount necessary to limit the net increase that delivery
5812+21 year to the costs of those credits included in the amounts
5813+22 paid by eligible retail customers in connection with
5814+23 electric service to no more than 1.65% of the amount paid
5815+24 per kilowatthour by eligible retail customers during the
5816+25 year ending May 31, 2009. The result of this computation
5817+26 shall apply to and reduce the procurement for all retail
5818+
5819+
5820+
5821+
5822+
5823+ SB1699 Enrolled - 162 - LRB103 27684 AMQ 54061 b
5824+
5825+
5826+SB1699 Enrolled- 163 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 163 - LRB103 27684 AMQ 54061 b
5827+ SB1699 Enrolled - 163 - LRB103 27684 AMQ 54061 b
5828+1 customers, and all those customers shall pay the same
5829+2 single, uniform cents per kilowatthour charge under
5830+3 subsection (k) of Section 16-108 of the Public Utilities
5831+4 Act. To arrive at a maximum dollar amount of zero emission
5832+5 credits to be paid for the particular delivery year, the
5833+6 resulting per kilowatthour amount shall be applied to the
5834+7 actual amount of kilowatthours of electricity delivered by
5835+8 the electric utility in the delivery year immediately
5836+9 prior to the procurement, to all retail customers in its
5837+10 service territory. Unpaid contractual volume for any
5838+11 delivery year shall be paid in any subsequent delivery
5839+12 year in which such payments can be made without exceeding
5840+13 the amount specified in this paragraph (2). The
5841+14 calculations required by this paragraph (2) shall be made
5842+15 only once for each procurement plan year. Once the
5843+16 determination as to the amount of zero emission credits to
5844+17 be paid is made based on the calculations set forth in this
5845+18 paragraph (2), no subsequent rate impact determinations
5846+19 shall be made and no adjustments to those contract amounts
5847+20 shall be allowed. All costs incurred under those contracts
5848+21 and in implementing this subsection (d-5) shall be
5849+22 recovered by the electric utility as provided in this
5850+23 Section.
5851+24 No later than June 30, 2019, the Commission shall
5852+25 review the limitation on the amount of zero emission
5853+26 credits procured under this subsection (d-5) and report to
5854+
5855+
5856+
5857+
5858+
5859+ SB1699 Enrolled - 163 - LRB103 27684 AMQ 54061 b
5860+
5861+
5862+SB1699 Enrolled- 164 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 164 - LRB103 27684 AMQ 54061 b
5863+ SB1699 Enrolled - 164 - LRB103 27684 AMQ 54061 b
5864+1 the General Assembly its findings as to whether that
5865+2 limitation unduly constrains the procurement of
5866+3 cost-effective zero emission credits.
5867+4 (3) Six years after the execution of a contract under
5868+5 this subsection (d-5), the Agency shall determine whether
5869+6 the actual zero emission credit payments received by the
5870+7 supplier over the 6-year period exceed the Average ZEC
5871+8 Payment. In addition, at the end of the term of a contract
5872+9 executed under this subsection (d-5), or at the time, if
5873+10 any, a zero emission facility's contract is terminated
5874+11 under subparagraph (E) of paragraph (1) of this subsection
5875+12 (d-5), then the Agency shall determine whether the actual
5876+13 zero emission credit payments received by the supplier
5877+14 over the term of the contract exceed the Average ZEC
5878+15 Payment, after taking into account any amounts previously
5879+16 credited back to the utility under this paragraph (3). If
5880+17 the Agency determines that the actual zero emission credit
5881+18 payments received by the supplier over the relevant period
5882+19 exceed the Average ZEC Payment, then the supplier shall
5883+20 credit the difference back to the utility. The amount of
5884+21 the credit shall be remitted to the applicable electric
5885+22 utility no later than 120 days after the Agency's
5886+23 determination, which the utility shall reflect as a credit
5887+24 on its retail customer bills as soon as practicable;
5888+25 however, the credit remitted to the utility shall not
5889+26 exceed the total amount of payments received by the
5890+
5891+
5892+
5893+
5894+
5895+ SB1699 Enrolled - 164 - LRB103 27684 AMQ 54061 b
5896+
5897+
5898+SB1699 Enrolled- 165 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 165 - LRB103 27684 AMQ 54061 b
5899+ SB1699 Enrolled - 165 - LRB103 27684 AMQ 54061 b
5900+1 facility under its contract.
5901+2 For purposes of this Section, the Average ZEC Payment
5902+3 shall be calculated by multiplying the quantity of zero
5903+4 emission credits delivered under the contract times the
5904+5 average contract price. The average contract price shall
5905+6 be determined by subtracting the amount calculated under
5906+7 subparagraph (B) of this paragraph (3) from the amount
5907+8 calculated under subparagraph (A) of this paragraph (3),
5908+9 as follows:
5909+10 (A) The average of the Social Cost of Carbon, as
5910+11 defined in subparagraph (B) of paragraph (1) of this
5911+12 subsection (d-5), during the term of the contract.
5912+13 (B) The average of the market price indices, as
5913+14 defined in subparagraph (B) of paragraph (1) of this
5914+15 subsection (d-5), during the term of the contract,
5915+16 minus the baseline market price index, as defined in
5916+17 subparagraph (B) of paragraph (1) of this subsection
5917+18 (d-5).
5918+19 If the subtraction yields a negative number, then the
5919+20 Average ZEC Payment shall be zero.
5920+21 (4) Cost-effective zero emission credits procured from
5921+22 zero emission facilities shall satisfy the applicable
5922+23 definitions set forth in Section 1-10 of this Act.
5923+24 (5) The electric utility shall retire all zero
5924+25 emission credits used to comply with the requirements of
5925+26 this subsection (d-5).
5926+
5927+
5928+
5929+
5930+
5931+ SB1699 Enrolled - 165 - LRB103 27684 AMQ 54061 b
5932+
5933+
5934+SB1699 Enrolled- 166 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 166 - LRB103 27684 AMQ 54061 b
5935+ SB1699 Enrolled - 166 - LRB103 27684 AMQ 54061 b
5936+1 (6) Electric utilities shall be entitled to recover
5937+2 all of the costs associated with the procurement of zero
5938+3 emission credits through an automatic adjustment clause
5939+4 tariff in accordance with subsection (k) and (m) of
5940+5 Section 16-108 of the Public Utilities Act, and the
5941+6 contracts executed under this subsection (d-5) shall
5942+7 provide that the utilities' payment obligations under such
5943+8 contracts shall be reduced if an adjustment is required
5944+9 under subsection (m) of Section 16-108 of the Public
5945+10 Utilities Act.
5946+11 (7) This subsection (d-5) shall become inoperative on
5947+12 January 1, 2028.
5948+13 (d-10) Nuclear Plant Assistance; carbon mitigation
5949+14 credits.
5950+15 (1) The General Assembly finds:
5951+16 (A) The health, welfare, and prosperity of all
5952+17 Illinois citizens require that the State of Illinois act
5953+18 to avoid and not increase carbon emissions from electric
5954+19 generation sources while continuing to ensure affordable,
5955+20 stable, and reliable electricity to all citizens.
5956+21 (B) Absent immediate action by the State to preserve
5957+22 existing carbon-free energy resources, those resources may
5958+23 retire, and the electric generation needs of Illinois'
5959+24 retail customers may be met instead by facilities that
5960+25 emit significant amounts of carbon pollution and other
5961+26 harmful air pollutants at a high social and economic cost
5962+
5963+
5964+
5965+
5966+
5967+ SB1699 Enrolled - 166 - LRB103 27684 AMQ 54061 b
5968+
5969+
5970+SB1699 Enrolled- 167 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 167 - LRB103 27684 AMQ 54061 b
5971+ SB1699 Enrolled - 167 - LRB103 27684 AMQ 54061 b
5972+1 until Illinois is able to develop other forms of clean
5973+2 energy.
5974+3 (C) The General Assembly finds that nuclear power
5975+4 generation is necessary for the State's transition to 100%
5976+5 clean energy, and ensuring continued operation of nuclear
5977+6 plants advances environmental and public health interests
5978+7 through providing carbon-free electricity while reducing
5979+8 the air pollution profile of the Illinois energy
5980+9 generation fleet.
5981+10 (D) The clean energy attributes of nuclear generation
5982+11 facilities support the State in its efforts to achieve
5983+12 100% clean energy.
5984+13 (E) The State currently invests in various forms of
5985+14 clean energy, including, but not limited to, renewable
5986+15 energy, energy efficiency, and low-emission vehicles,
5987+16 among others.
5988+17 (F) The Environmental Protection Agency commissioned
5989+18 an independent audit which provided a detailed assessment
5990+19 of the financial condition of the Illinois nuclear fleet
5991+20 to evaluate its financial viability and whether the
5992+21 environmental benefits of such resources were at risk. The
5993+22 report identified the risk of losing the environmental
5994+23 benefits of several specific nuclear units. The report
5995+24 also identified that the LaSalle County Generating Station
5996+25 will continue to operate through 2026 and therefore is not
5997+26 eligible to participate in the carbon mitigation credit
5998+
5999+
6000+
6001+
6002+
6003+ SB1699 Enrolled - 167 - LRB103 27684 AMQ 54061 b
6004+
6005+
6006+SB1699 Enrolled- 168 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 168 - LRB103 27684 AMQ 54061 b
6007+ SB1699 Enrolled - 168 - LRB103 27684 AMQ 54061 b
6008+1 program.
6009+2 (G) Nuclear plants provide carbon-free energy, which
6010+3 helps to avoid many health-related negative impacts for
6011+4 Illinois residents.
6012+5 (H) The procurement of carbon mitigation credits
6013+6 representing the environmental benefits of carbon-free
6014+7 generation will further the State's efforts at achieving
6015+8 100% clean energy and decarbonizing the electricity sector
6016+9 in a safe, reliable, and affordable manner. Further, the
6017+10 procurement of carbon emission credits will enhance the
6018+11 health and welfare of Illinois residents through decreased
6019+12 reliance on more highly polluting generation.
6020+13 (I) The General Assembly therefore finds it necessary
6021+14 to establish carbon mitigation credits to ensure decreased
6022+15 reliance on more carbon-intensive energy resources, for
6023+16 transitioning to a fully decarbonized electricity sector,
6024+17 and to help ensure health and welfare of the State's
6025+18 residents.
6026+19 (2) As used in this subsection:
6027+20 "Baseline costs" means costs used to establish a customer
6028+21 protection cap that have been evaluated through an independent
6029+22 audit of a carbon-free energy resource conducted by the
6030+23 Environmental Protection Agency that evaluated projected
6031+24 annual costs for operation and maintenance expenses; fully
6032+25 allocated overhead costs, which shall be allocated using the
6033+26 methodology developed by the Institute for Nuclear Power
6034+
6035+
6036+
6037+
6038+
6039+ SB1699 Enrolled - 168 - LRB103 27684 AMQ 54061 b
6040+
6041+
6042+SB1699 Enrolled- 169 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 169 - LRB103 27684 AMQ 54061 b
6043+ SB1699 Enrolled - 169 - LRB103 27684 AMQ 54061 b
6044+1 Operations; fuel expenditures; nonfuel capital expenditures;
6045+2 spent fuel expenditures; a return on working capital; the cost
6046+3 of operational and market risks that could be avoided by
6047+4 ceasing operation; and any other costs necessary for continued
6048+5 operations, provided that "necessary" means, for purposes of
6049+6 this definition, that the costs could reasonably be avoided
6050+7 only by ceasing operations of the carbon-free energy resource.
6051+8 "Carbon mitigation credit" means a tradable credit that
6052+9 represents the carbon emission reduction attributes of one
6053+10 megawatt-hour of energy produced from a carbon-free energy
6054+11 resource.
6055+12 "Carbon-free energy resource" means a generation facility
6056+13 that: (1) is fueled by nuclear power; and (2) is
6057+14 interconnected to PJM Interconnection, LLC.
6058+15 (3) Procurement.
6059+16 (A) Beginning with the delivery year commencing on
6060+17 June 1, 2022, the Agency shall, for electric utilities
6061+18 serving at least 3,000,000 retail customers in the State,
6062+19 seek to procure contracts for no more than approximately
6063+20 54,500,000 cost-effective carbon mitigation credits from
6064+21 carbon-free energy resources because such credits are
6065+22 necessary to support current levels of carbon-free energy
6066+23 generation and ensure the State meets its carbon dioxide
6067+24 emissions reduction goals. The Agency shall not make a
6068+25 partial award of a contract for carbon mitigation credits
6069+26 covering a fractional amount of a carbon-free energy
6070+
6071+
6072+
6073+
6074+
6075+ SB1699 Enrolled - 169 - LRB103 27684 AMQ 54061 b
6076+
6077+
6078+SB1699 Enrolled- 170 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 170 - LRB103 27684 AMQ 54061 b
6079+ SB1699 Enrolled - 170 - LRB103 27684 AMQ 54061 b
6080+1 resource's projected output.
6081+2 (B) Each carbon-free energy resource that intends to
6082+3 participate in a procurement shall be required to submit
6083+4 to the Agency the following information for the resource
6084+5 on or before the date established by the Agency:
6085+6 (i) the in-service date and remaining useful life
6086+7 of the carbon-free energy resource;
6087+8 (ii) the amount of power generated annually for
6088+9 each of the past 10 years, which shall be used to
6089+10 determine the capability of each facility;
6090+11 (iii) a commitment to be reflected in any contract
6091+12 entered into pursuant to this subsection (d-10) to
6092+13 continue operating the carbon-free energy resource at
6093+14 a capacity factor of at least 88% annually on average
6094+15 for the duration of the contract or contracts executed
6095+16 under the procurement held under this subsection
6096+17 (d-10), except in an instance described in
6097+18 subparagraph (E) of paragraph (1) of subsection (d-5)
6098+19 of this Section or made impracticable as a result of
6099+20 compliance with law or regulation;
6100+21 (iv) financial need and the risk of loss of the
6101+22 environmental benefits of such resource, which shall
6102+23 include the following information:
6103+24 (I) the carbon-free energy resource's cost
6104+25 projections, expressed on a per megawatt-hour
6105+26 basis, over the next 5 delivery years, which shall
6106+
6107+
6108+
6109+
6110+
6111+ SB1699 Enrolled - 170 - LRB103 27684 AMQ 54061 b
6112+
6113+
6114+SB1699 Enrolled- 171 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 171 - LRB103 27684 AMQ 54061 b
6115+ SB1699 Enrolled - 171 - LRB103 27684 AMQ 54061 b
6116+1 include the following: operation and maintenance
6117+2 expenses; fully allocated overhead costs, which
6118+3 shall be allocated using the methodology developed
6119+4 by the Institute for Nuclear Power Operations;
6120+5 fuel expenditures; nonfuel capital expenditures;
6121+6 spent fuel expenditures; a return on working
6122+7 capital; the cost of operational and market risks
6123+8 that could be avoided by ceasing operation; and
6124+9 any other costs necessary for continued
6125+10 operations, provided that "necessary" means, for
6126+11 purposes of this subitem (I), that the costs could
6127+12 reasonably be avoided only by ceasing operations
6128+13 of the carbon-free energy resource; and
6129+14 (II) the carbon-free energy resource's revenue
6130+15 projections, including energy, capacity, ancillary
6131+16 services, any other direct State support, known or
6132+17 anticipated federal attribute credits, known or
6133+18 anticipated tax credits, and any other direct
6134+19 federal support.
6135+20 The information described in this subparagraph (B) may
6136+21 be submitted on a confidential basis and shall be treated
6137+22 and maintained by the Agency, the procurement
6138+23 administrator, and the Commission as confidential and
6139+24 proprietary and exempt from disclosure under subparagraphs
6140+25 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
6141+26 Information Act. The Office of the Attorney General shall
6142+
6143+
6144+
6145+
6146+
6147+ SB1699 Enrolled - 171 - LRB103 27684 AMQ 54061 b
6148+
6149+
6150+SB1699 Enrolled- 172 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 172 - LRB103 27684 AMQ 54061 b
6151+ SB1699 Enrolled - 172 - LRB103 27684 AMQ 54061 b
6152+1 have access to, and maintain the confidentiality of, such
6153+2 information pursuant to Section 6.5 of the Attorney
6154+3 General Act.
6155+4 (C) The Agency shall solicit bids for the contracts
6156+5 described in this subsection (d-10) from carbon-free
6157+6 energy resources that have satisfied the requirements of
6158+7 subparagraph (B) of this paragraph (3). The contracts
6159+8 procured pursuant to a procurement event shall reflect,
6160+9 and be subject to, the following terms, requirements, and
6161+10 limitations:
6162+11 (i) Contracts are for delivery of carbon
6163+12 mitigation credits, and are not energy or capacity
6164+13 sales contracts requiring physical delivery. Pursuant
6165+14 to item (iii), contract payments shall fully deduct
6166+15 the value of any monetized federal production tax
6167+16 credits, credits issued pursuant to a federal clean
6168+17 energy standard, and other federal credits if
6169+18 applicable.
6170+19 (ii) Contracts for carbon mitigation credits shall
6171+20 commence with the delivery year beginning on June 1,
6172+21 2022 and shall be for a term of 5 delivery years
6173+22 concluding on May 31, 2027.
6174+23 (iii) The price per carbon mitigation credit to be
6175+24 paid under a contract for a given delivery year shall
6176+25 be equal to an accepted bid price less the sum of:
6177+26 (I) one of the following energy price indices,
6178+
6179+
6180+
6181+
6182+
6183+ SB1699 Enrolled - 172 - LRB103 27684 AMQ 54061 b
6184+
6185+
6186+SB1699 Enrolled- 173 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 173 - LRB103 27684 AMQ 54061 b
6187+ SB1699 Enrolled - 173 - LRB103 27684 AMQ 54061 b
6188+1 selected by the bidder at the time of the bid for
6189+2 the term of the contract:
6190+3 (aa) the weighted-average hourly day-ahead
6191+4 price for the applicable delivery year at the
6192+5 busbar of all resources procured pursuant to
6193+6 this subsection (d-10), weighted by actual
6194+7 production from the resources; or
6195+8 (bb) the projected energy price for the
6196+9 PJM Interconnection, LLC Northern Illinois Hub
6197+10 for the applicable delivery year determined
6198+11 according to subitem (aa) of item (iii) of
6199+12 subparagraph (B) of paragraph (1) of
6200+13 subsection (d-5).
6201+14 (II) the Base Residual Auction Capacity Price
6202+15 for the ComEd zone as determined by PJM
6203+16 Interconnection, LLC, divided by 24 hours per day,
6204+17 for the applicable delivery year for the first 3
6205+18 delivery years, and then any subsequent delivery
6206+19 years unless the PJM Interconnection, LLC applies
6207+20 the Minimum Offer Price Rule to participating
6208+21 carbon-free energy resources because they supply
6209+22 carbon mitigation credits pursuant to this Section
6210+23 at which time, upon notice by the carbon-free
6211+24 energy resource to the Commission and subject to
6212+25 the Commission's confirmation, the value under
6213+26 this subitem shall be zero, as further described
6214+
6215+
6216+
6217+
6218+
6219+ SB1699 Enrolled - 173 - LRB103 27684 AMQ 54061 b
6220+
6221+
6222+SB1699 Enrolled- 174 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 174 - LRB103 27684 AMQ 54061 b
6223+ SB1699 Enrolled - 174 - LRB103 27684 AMQ 54061 b
6224+1 in the carbon mitigation credit procurement plan;
6225+2 and
6226+3 (III) any value of monetized federal tax
6227+4 credits, direct payments, or similar subsidy
6228+5 provided to the carbon-free energy resource from
6229+6 any unit of government that is not already
6230+7 reflected in energy prices.
6231+8 If the price-per-megawatt-hour calculation
6232+9 performed under item (iii) of this subparagraph (C)
6233+10 for a given delivery year results in a net positive
6234+11 value, then the electric utility counterparty to the
6235+12 contract shall multiply such net value by the
6236+13 applicable contract quantity and remit the amount to
6237+14 the supplier.
6238+15 To protect retail customers from retail rate
6239+16 impacts that may arise upon the initiation of carbon
6240+17 policy changes, if the price-per-megawatt-hour
6241+18 calculation performed under item (iii) of this
6242+19 subparagraph (C) for a given delivery year results in
6243+20 a net negative value, then the supplier counterparty
6244+21 to the contract shall multiply such net value by the
6245+22 applicable contract quantity and remit such amount to
6246+23 the electric utility counterparty. The electric
6247+24 utility shall reflect such amounts remitted by
6248+25 suppliers as a credit on its retail customer bills as
6249+26 soon as practicable.
6250+
6251+
6252+
6253+
6254+
6255+ SB1699 Enrolled - 174 - LRB103 27684 AMQ 54061 b
6256+
6257+
6258+SB1699 Enrolled- 175 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 175 - LRB103 27684 AMQ 54061 b
6259+ SB1699 Enrolled - 175 - LRB103 27684 AMQ 54061 b
6260+1 (iv) To ensure that retail customers in Northern
6261+2 Illinois do not pay more for carbon mitigation credits
6262+3 than the value such credits provide, and
6263+4 notwithstanding the provisions of this subsection
6264+5 (d-10), the Agency shall not accept bids for contracts
6265+6 that exceed a customer protection cap equal to the
6266+7 baseline costs of carbon-free energy resources.
6267+8 The baseline costs for the applicable year shall
6268+9 be the following:
6269+10 (I) For the delivery year beginning June 1,
6270+11 2022, the baseline costs shall be an amount equal
6271+12 to $30.30 per megawatt-hour.
6272+13 (II) For the delivery year beginning June 1,
6273+14 2023, the baseline costs shall be an amount equal
6274+15 to $32.50 per megawatt-hour.
6275+16 (III) For the delivery year beginning June 1,
6276+17 2024, the baseline costs shall be an amount equal
6277+18 to $33.43 per megawatt-hour.
6278+19 (IV) For the delivery year beginning June 1,
6279+20 2025, the baseline costs shall be an amount equal
6280+21 to $33.50 per megawatt-hour.
6281+22 (V) For the delivery year beginning June 1,
6282+23 2026, the baseline costs shall be an amount equal
6283+24 to $34.50 per megawatt-hour.
6284+25 An Environmental Protection Agency consultant
6285+26 forecast, included in a report issued April 14, 2021,
6286+
6287+
6288+
6289+
6290+
6291+ SB1699 Enrolled - 175 - LRB103 27684 AMQ 54061 b
6292+
6293+
6294+SB1699 Enrolled- 176 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 176 - LRB103 27684 AMQ 54061 b
6295+ SB1699 Enrolled - 176 - LRB103 27684 AMQ 54061 b
6296+1 projects that a carbon-free energy resource has the
6297+2 opportunity to earn on average approximately $30.28
6298+3 per megawatt-hour, for the sale of energy and capacity
6299+4 during the time period between 2022 and 2027.
6300+5 Therefore, the sale of carbon mitigation credits
6301+6 provides the opportunity to receive an additional
6302+7 amount per megawatt-hour in addition to the projected
6303+8 prices for energy and capacity.
6304+9 Although actual energy and capacity prices may
6305+10 vary from year-to-year, the General Assembly finds
6306+11 that this customer protection cap will help ensure
6307+12 that the cost of carbon mitigation credits will be
6308+13 less than its value, based upon the social cost of
6309+14 carbon identified in the Technical Support Document
6310+15 issued in February 2021 by the U.S. Interagency
6311+16 Working Group on Social Cost of Greenhouse Gases and
6312+17 the PJM Interconnection, LLC carbon dioxide marginal
6313+18 emission rate for 2020, and that a carbon-free energy
6314+19 resource receiving payment for carbon mitigation
6315+20 credits receives no more than necessary to keep those
6316+21 units in operation.
6317+22 (D) No later than 7 days after the effective date of
6318+23 this amendatory Act of the 102nd General Assembly, the
6319+24 Agency shall publish its proposed carbon mitigation credit
6320+25 procurement plan. The Plan shall provide that winning bids
6321+26 shall be selected by taking into consideration which
6322+
6323+
6324+
6325+
6326+
6327+ SB1699 Enrolled - 176 - LRB103 27684 AMQ 54061 b
6328+
6329+
6330+SB1699 Enrolled- 177 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 177 - LRB103 27684 AMQ 54061 b
6331+ SB1699 Enrolled - 177 - LRB103 27684 AMQ 54061 b
6332+1 resources best match public interest criteria that
6333+2 include, but are not limited to, minimizing carbon dioxide
6334+3 emissions that result from electricity consumed in
6335+4 Illinois and minimizing sulfur dioxide, nitrogen oxide,
6336+5 and particulate matter emissions that adversely affect the
6337+6 citizens of this State. The selection of winning bids
6338+7 shall also take into account the incremental environmental
6339+8 benefits resulting from the procurement or procurements,
6340+9 such as any existing environmental benefits that are
6341+10 preserved by a procurement held under this subsection
6342+11 (d-10) and would cease to exist if the procurement were
6343+12 not held, including the preservation of carbon-free energy
6344+13 resources. For those bidders having the same public
6345+14 interest criteria score, the relative ranking of such
6346+15 bidders shall be determined by price. The Plan shall
6347+16 describe in detail how each public interest factor shall
6348+17 be considered and weighted in the bid selection process to
6349+18 ensure that the public interest criteria are applied to
6350+19 the procurement. The Plan shall, to the extent practical
6351+20 and permissible by federal law, ensure that successful
6352+21 bidders make commercially reasonable efforts to apply for
6353+22 federal tax credits, direct payments, or similar subsidy
6354+23 programs that support carbon-free generation and for which
6355+24 the successful bidder is eligible. Upon publishing of the
6356+25 carbon mitigation credit procurement plan, copies of the
6357+26 plan shall be posted and made publicly available on the
6358+
6359+
6360+
6361+
6362+
6363+ SB1699 Enrolled - 177 - LRB103 27684 AMQ 54061 b
6364+
6365+
6366+SB1699 Enrolled- 178 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 178 - LRB103 27684 AMQ 54061 b
6367+ SB1699 Enrolled - 178 - LRB103 27684 AMQ 54061 b
6368+1 Agency's website. All interested parties shall have 7 days
6369+2 following the date of posting to provide comment to the
6370+3 Agency on the plan. All comments shall be posted to the
6371+4 Agency's website. Following the end of the comment period,
6372+5 but no more than 19 days later than the effective date of
6373+6 this amendatory Act of the 102nd General Assembly, the
6374+7 Agency shall revise the plan as necessary based on the
6375+8 comments received and file its carbon mitigation credit
6376+9 procurement plan with the Commission.
6377+10 (E) If the Commission determines that the plan is
6378+11 likely to result in the procurement of cost-effective
6379+12 carbon mitigation credits, then the Commission shall,
6380+13 after notice and hearing and opportunity for comment, but
6381+14 no later than 42 days after the Agency filed the plan,
6382+15 approve the plan or approve it with modification. For
6383+16 purposes of this subsection (d-10), "cost-effective" means
6384+17 carbon mitigation credits that are procured from
6385+18 carbon-free energy resources at prices that are within the
6386+19 limits specified in this paragraph (3). As part of the
6387+20 Commission's review and acceptance or rejection of the
6388+21 procurement results, the Commission shall, in its public
6389+22 notice of successful bidders:
6390+23 (i) identify how the selected carbon-free energy
6391+24 resources satisfy the public interest criteria
6392+25 described in this paragraph (3) of minimizing carbon
6393+26 dioxide emissions that result from electricity
6394+
6395+
6396+
6397+
6398+
6399+ SB1699 Enrolled - 178 - LRB103 27684 AMQ 54061 b
6400+
6401+
6402+SB1699 Enrolled- 179 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 179 - LRB103 27684 AMQ 54061 b
6403+ SB1699 Enrolled - 179 - LRB103 27684 AMQ 54061 b
6404+1 consumed in Illinois and minimizing sulfur dioxide,
6405+2 nitrogen oxide, and particulate matter emissions that
6406+3 adversely affect the citizens of this State;
6407+4 (ii) specifically address how the selection of
6408+5 carbon-free energy resources takes into account the
6409+6 incremental environmental benefits resulting from the
6410+7 procurement, including any existing environmental
6411+8 benefits that are preserved by the procurements held
6412+9 under this amendatory Act of the 102nd General
6413+10 Assembly and would have ceased to exist if the
6414+11 procurements had not been held, such as the
6415+12 preservation of carbon-free energy resources;
6416+13 (iii) quantify the environmental benefit of
6417+14 preserving the carbon-free energy resources procured
6418+15 pursuant to this subsection (d-10), including the
6419+16 following:
6420+17 (I) an assessment value of avoided greenhouse
6421+18 gas emissions measured as the product of the
6422+19 carbon-free energy resources' output over the
6423+20 contract term, using generally accepted
6424+21 methodologies for the valuation of avoided
6425+22 emissions; and
6426+23 (II) an assessment of costs of replacement
6427+24 with other carbon-free energy resources and
6428+25 renewable energy resources, including wind and
6429+26 photovoltaic generation, based upon an assessment
6430+
6431+
6432+
6433+
6434+
6435+ SB1699 Enrolled - 179 - LRB103 27684 AMQ 54061 b
6436+
6437+
6438+SB1699 Enrolled- 180 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 180 - LRB103 27684 AMQ 54061 b
6439+ SB1699 Enrolled - 180 - LRB103 27684 AMQ 54061 b
6440+1 of the prices paid for renewable energy credits
6441+2 through programs and procurements conducted
6442+3 pursuant to subsection (c) of Section 1-75 of this
6443+4 Act, and the additional storage necessary to
6444+5 produce the same or similar capability of matching
6445+6 customer usage patterns.
6446+7 (F) The procurements described in this paragraph (3),
6447+8 including, but not limited to, the execution of all
6448+9 contracts procured, shall be completed no later than
6449+10 December 3, 2021. The procurement and plan approval
6450+11 processes required by this paragraph (3) shall be
6451+12 conducted in conjunction with the procurement and plan
6452+13 approval processes required by Section 16-111.5 of the
6453+14 Public Utilities Act, to the extent practicable. However,
6454+15 the Agency and Commission may, as appropriate, modify the
6455+16 various dates and timelines under this subparagraph and
6456+17 subparagraphs (D) and (E) of this paragraph (3) to meet
6457+18 the December 3, 2021 contract execution deadline.
6458+19 Following the completion of such procurements, and
6459+20 consistent with this paragraph (3), the Agency shall
6460+21 calculate the payments to be made under each contract in a
6461+22 timely fashion.
6462+23 (F-1) Costs incurred by the electric utility pursuant
6463+24 to a contract authorized by this subsection (d-10) shall
6464+25 be deemed prudently incurred and reasonable in amount, and
6465+26 the electric utility shall be entitled to full cost
6466+
6467+
6468+
6469+
6470+
6471+ SB1699 Enrolled - 180 - LRB103 27684 AMQ 54061 b
6472+
6473+
6474+SB1699 Enrolled- 181 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 181 - LRB103 27684 AMQ 54061 b
6475+ SB1699 Enrolled - 181 - LRB103 27684 AMQ 54061 b
6476+1 recovery pursuant to a tariff or tariffs filed with the
6477+2 Commission.
6478+3 (G) The counterparty electric utility shall retire all
6479+4 carbon mitigation credits used to comply with the
6480+5 requirements of this subsection (d-10).
6481+6 (H) If a carbon-free energy resource is sold to
6482+7 another owner, the rights, obligations, and commitments
6483+8 under this subsection (d-10) shall continue to the
6484+9 subsequent owner.
6485+10 (I) This subsection (d-10) shall become inoperative on
6486+11 January 1, 2028.
6487+12 (e) The draft procurement plans are subject to public
6488+13 comment, as required by Section 16-111.5 of the Public
6489+14 Utilities Act.
6490+15 (f) The Agency shall submit the final procurement plan to
6491+16 the Commission. The Agency shall revise a procurement plan if
6492+17 the Commission determines that it does not meet the standards
6493+18 set forth in Section 16-111.5 of the Public Utilities Act.
6494+19 (g) The Agency shall assess fees to each affected utility
6495+20 to recover the costs incurred in preparation of the annual
6496+21 procurement plan for the utility.
6497+22 (h) The Agency shall assess fees to each bidder to recover
6498+23 the costs incurred in connection with a competitive
6499+24 procurement process.
6500+25 (i) A renewable energy credit, carbon emission credit,
6501+26 zero emission credit, or carbon mitigation credit can only be
6502+
6503+
6504+
6505+
6506+
6507+ SB1699 Enrolled - 181 - LRB103 27684 AMQ 54061 b
6508+
6509+
6510+SB1699 Enrolled- 182 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 182 - LRB103 27684 AMQ 54061 b
6511+ SB1699 Enrolled - 182 - LRB103 27684 AMQ 54061 b
6512+1 used once to comply with a single portfolio or other standard
6513+2 as set forth in subsection (c), subsection (d), or subsection
6514+3 (d-5) of this Section, respectively. A renewable energy
6515+4 credit, carbon emission credit, zero emission credit, or
6516+5 carbon mitigation credit cannot be used to satisfy the
6517+6 requirements of more than one standard. If more than one type
6518+7 of credit is issued for the same megawatt hour of energy, only
6519+8 one credit can be used to satisfy the requirements of a single
6520+9 standard. After such use, the credit must be retired together
6521+10 with any other credits issued for the same megawatt hour of
6522+11 energy.
6523+12 (Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
6524+13 102-662, eff. 9-15-21.)
6525+14 (Text of Section after amendment by P.A. 103-380)
6526+15 Sec. 1-75. Planning and Procurement Bureau. The Planning
6527+16 and Procurement Bureau has the following duties and
6528+17 responsibilities:
6529+18 (a) The Planning and Procurement Bureau shall each year,
6530+19 beginning in 2008, develop procurement plans and conduct
6531+20 competitive procurement processes in accordance with the
6532+21 requirements of Section 16-111.5 of the Public Utilities Act
6533+22 for the eligible retail customers of electric utilities that
6534+23 on December 31, 2005 provided electric service to at least
6535+24 100,000 customers in Illinois. Beginning with the delivery
6536+25 year commencing on June 1, 2017, the Planning and Procurement
6537+
6538+
6539+
6540+
6541+
6542+ SB1699 Enrolled - 182 - LRB103 27684 AMQ 54061 b
6543+
6544+
6545+SB1699 Enrolled- 183 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 183 - LRB103 27684 AMQ 54061 b
6546+ SB1699 Enrolled - 183 - LRB103 27684 AMQ 54061 b
6547+1 Bureau shall develop plans and processes for the procurement
6548+2 of zero emission credits from zero emission facilities in
6549+3 accordance with the requirements of subsection (d-5) of this
6550+4 Section. Beginning on the effective date of this amendatory
6551+5 Act of the 102nd General Assembly, the Planning and
6552+6 Procurement Bureau shall develop plans and processes for the
6553+7 procurement of carbon mitigation credits from carbon-free
6554+8 energy resources in accordance with the requirements of
6555+9 subsection (d-10) of this Section. The Planning and
6556+10 Procurement Bureau shall also develop procurement plans and
6557+11 conduct competitive procurement processes in accordance with
6558+12 the requirements of Section 16-111.5 of the Public Utilities
6559+13 Act for the eligible retail customers of small
6560+14 multi-jurisdictional electric utilities that (i) on December
6561+15 31, 2005 served less than 100,000 customers in Illinois and
6562+16 (ii) request a procurement plan for their Illinois
6563+17 jurisdictional load. This Section shall not apply to a small
6564+18 multi-jurisdictional utility until such time as a small
6565+19 multi-jurisdictional utility requests the Agency to prepare a
6566+20 procurement plan for their Illinois jurisdictional load. For
6567+21 the purposes of this Section, the term "eligible retail
6568+22 customers" has the same definition as found in Section
6569+23 16-111.5(a) of the Public Utilities Act.
6570+24 Beginning with the plan or plans to be implemented in the
6571+25 2017 delivery year, the Agency shall no longer include the
6572+26 procurement of renewable energy resources in the annual
6573+
6574+
6575+
6576+
6577+
6578+ SB1699 Enrolled - 183 - LRB103 27684 AMQ 54061 b
6579+
6580+
6581+SB1699 Enrolled- 184 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 184 - LRB103 27684 AMQ 54061 b
6582+ SB1699 Enrolled - 184 - LRB103 27684 AMQ 54061 b
6583+1 procurement plans required by this subsection (a), except as
6584+2 provided in subsection (q) of Section 16-111.5 of the Public
6585+3 Utilities Act, and shall instead develop a long-term renewable
6586+4 resources procurement plan in accordance with subsection (c)
6587+5 of this Section and Section 16-111.5 of the Public Utilities
6588+6 Act.
6589+7 In accordance with subsection (c-5) of this Section, the
6590+8 Planning and Procurement Bureau shall oversee the procurement
6591+9 by electric utilities that served more than 300,000 retail
6592+10 customers in this State as of January 1, 2019 of renewable
6593+11 energy credits from new utility-scale solar projects to be
6594+12 installed, along with energy storage facilities, at or
6595+13 adjacent to the sites of electric generating facilities that,
6596+14 as of January 1, 2016, burned coal as their primary fuel
6597+15 source.
6598+16 (1) The Agency shall each year, beginning in 2008, as
6599+17 needed, issue a request for qualifications for experts or
6600+18 expert consulting firms to develop the procurement plans
6601+19 in accordance with Section 16-111.5 of the Public
6602+20 Utilities Act. In order to qualify an expert or expert
6603+21 consulting firm must have:
6604+22 (A) direct previous experience assembling
6605+23 large-scale power supply plans or portfolios for
6606+24 end-use customers;
6607+25 (B) an advanced degree in economics, mathematics,
6608+26 engineering, risk management, or a related area of
6609+
6610+
6611+
6612+
6613+
6614+ SB1699 Enrolled - 184 - LRB103 27684 AMQ 54061 b
6615+
6616+
6617+SB1699 Enrolled- 185 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 185 - LRB103 27684 AMQ 54061 b
6618+ SB1699 Enrolled - 185 - LRB103 27684 AMQ 54061 b
6619+1 study;
6620+2 (C) 10 years of experience in the electricity
6621+3 sector, including managing supply risk;
6622+4 (D) expertise in wholesale electricity market
6623+5 rules, including those established by the Federal
6624+6 Energy Regulatory Commission and regional transmission
6625+7 organizations;
6626+8 (E) expertise in credit protocols and familiarity
6627+9 with contract protocols;
6628+10 (F) adequate resources to perform and fulfill the
6629+11 required functions and responsibilities; and
6630+12 (G) the absence of a conflict of interest and
6631+13 inappropriate bias for or against potential bidders or
6632+14 the affected electric utilities.
6633+15 (2) The Agency shall each year, as needed, issue a
6634+16 request for qualifications for a procurement administrator
6635+17 to conduct the competitive procurement processes in
6636+18 accordance with Section 16-111.5 of the Public Utilities
6637+19 Act. In order to qualify an expert or expert consulting
6638+20 firm must have:
6639+21 (A) direct previous experience administering a
6640+22 large-scale competitive procurement process;
6641+23 (B) an advanced degree in economics, mathematics,
6642+24 engineering, or a related area of study;
6643+25 (C) 10 years of experience in the electricity
6644+26 sector, including risk management experience;
6645+
6646+
6647+
6648+
6649+
6650+ SB1699 Enrolled - 185 - LRB103 27684 AMQ 54061 b
6651+
6652+
6653+SB1699 Enrolled- 186 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 186 - LRB103 27684 AMQ 54061 b
6654+ SB1699 Enrolled - 186 - LRB103 27684 AMQ 54061 b
6655+1 (D) expertise in wholesale electricity market
6656+2 rules, including those established by the Federal
6657+3 Energy Regulatory Commission and regional transmission
6658+4 organizations;
6659+5 (E) expertise in credit and contract protocols;
6660+6 (F) adequate resources to perform and fulfill the
6661+7 required functions and responsibilities; and
6662+8 (G) the absence of a conflict of interest and
6663+9 inappropriate bias for or against potential bidders or
6664+10 the affected electric utilities.
6665+11 (3) The Agency shall provide affected utilities and
6666+12 other interested parties with the lists of qualified
6667+13 experts or expert consulting firms identified through the
6668+14 request for qualifications processes that are under
6669+15 consideration to develop the procurement plans and to
6670+16 serve as the procurement administrator. The Agency shall
6671+17 also provide each qualified expert's or expert consulting
6672+18 firm's response to the request for qualifications. All
6673+19 information provided under this subparagraph shall also be
6674+20 provided to the Commission. The Agency may provide by rule
6675+21 for fees associated with supplying the information to
6676+22 utilities and other interested parties. These parties
6677+23 shall, within 5 business days, notify the Agency in
6678+24 writing if they object to any experts or expert consulting
6679+25 firms on the lists. Objections shall be based on:
6680+26 (A) failure to satisfy qualification criteria;
6681+
6682+
6683+
6684+
6685+
6686+ SB1699 Enrolled - 186 - LRB103 27684 AMQ 54061 b
6687+
6688+
6689+SB1699 Enrolled- 187 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 187 - LRB103 27684 AMQ 54061 b
6690+ SB1699 Enrolled - 187 - LRB103 27684 AMQ 54061 b
6691+1 (B) identification of a conflict of interest; or
6692+2 (C) evidence of inappropriate bias for or against
6693+3 potential bidders or the affected utilities.
6694+4 The Agency shall remove experts or expert consulting
6695+5 firms from the lists within 10 days if there is a
6696+6 reasonable basis for an objection and provide the updated
6697+7 lists to the affected utilities and other interested
6698+8 parties. If the Agency fails to remove an expert or expert
6699+9 consulting firm from a list, an objecting party may seek
6700+10 review by the Commission within 5 days thereafter by
6701+11 filing a petition, and the Commission shall render a
6702+12 ruling on the petition within 10 days. There is no right of
6703+13 appeal of the Commission's ruling.
6704+14 (4) The Agency shall issue requests for proposals to
6705+15 the qualified experts or expert consulting firms to
6706+16 develop a procurement plan for the affected utilities and
6707+17 to serve as procurement administrator.
6708+18 (5) The Agency shall select an expert or expert
6709+19 consulting firm to develop procurement plans based on the
6710+20 proposals submitted and shall award contracts of up to 5
6711+21 years to those selected.
6712+22 (6) The Agency shall select an expert or expert
6713+23 consulting firm, with approval of the Commission, to serve
6714+24 as procurement administrator based on the proposals
6715+25 submitted. If the Commission rejects, within 5 days, the
6716+26 Agency's selection, the Agency shall submit another
6717+
6718+
6719+
6720+
6721+
6722+ SB1699 Enrolled - 187 - LRB103 27684 AMQ 54061 b
6723+
6724+
6725+SB1699 Enrolled- 188 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 188 - LRB103 27684 AMQ 54061 b
6726+ SB1699 Enrolled - 188 - LRB103 27684 AMQ 54061 b
6727+1 recommendation within 3 days based on the proposals
6728+2 submitted. The Agency shall award a 5-year contract to the
6729+3 expert or expert consulting firm so selected with
6730+4 Commission approval.
6731+5 (b) The experts or expert consulting firms retained by the
6732+6 Agency shall, as appropriate, prepare procurement plans, and
6733+7 conduct a competitive procurement process as prescribed in
6734+8 Section 16-111.5 of the Public Utilities Act, to ensure
6735+9 adequate, reliable, affordable, efficient, and environmentally
6736+10 sustainable electric service at the lowest total cost over
6737+11 time, taking into account any benefits of price stability, for
6738+12 eligible retail customers of electric utilities that on
6739+13 December 31, 2005 provided electric service to at least
6740+14 100,000 customers in the State of Illinois, and for eligible
6741+15 Illinois retail customers of small multi-jurisdictional
6742+16 electric utilities that (i) on December 31, 2005 served less
6743+17 than 100,000 customers in Illinois and (ii) request a
6744+18 procurement plan for their Illinois jurisdictional load.
6745+19 (c) Renewable portfolio standard.
6746+20 (1)(A) The Agency shall develop a long-term renewable
6747+21 resources procurement plan that shall include procurement
6748+22 programs and competitive procurement events necessary to
6749+23 meet the goals set forth in this subsection (c). The
6750+24 initial long-term renewable resources procurement plan
6751+25 shall be released for comment no later than 160 days after
6752+26 June 1, 2017 (the effective date of Public Act 99-906).
6753+
6754+
6755+
6756+
6757+
6758+ SB1699 Enrolled - 188 - LRB103 27684 AMQ 54061 b
6759+
6760+
6761+SB1699 Enrolled- 189 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 189 - LRB103 27684 AMQ 54061 b
6762+ SB1699 Enrolled - 189 - LRB103 27684 AMQ 54061 b
6763+1 The Agency shall review, and may revise on an expedited
6764+2 basis, the long-term renewable resources procurement plan
6765+3 at least every 2 years, which shall be conducted in
6766+4 conjunction with the procurement plan under Section
6767+5 16-111.5 of the Public Utilities Act to the extent
6768+6 practicable to minimize administrative expense. No later
6769+7 than 120 days after the effective date of this amendatory
6770+8 Act of the 103rd General Assembly, the Agency shall
6771+9 release for comment a revision to the long-term renewable
6772+10 resources procurement plan, updating elements of the most
6773+11 recently approved plan as needed to comply with this
6774+12 amendatory Act of the 103rd General Assembly, and any
6775+13 long-term renewable resources procurement plan update
6776+14 published by the Agency but not yet approved by the
6777+15 Illinois Commerce Commission shall be withdrawn. The
6778+16 long-term renewable resources procurement plans shall be
6779+17 subject to review and approval by the Commission under
6780+18 Section 16-111.5 of the Public Utilities Act.
6781+19 (B) Subject to subparagraph (F) of this paragraph (1),
6782+20 the long-term renewable resources procurement plan shall
6783+21 attempt to meet the goals for procurement of renewable
6784+22 energy credits at levels of at least the following overall
6785+23 percentages: 13% by the 2017 delivery year; increasing by
6786+24 at least 1.5% each delivery year thereafter to at least
6787+25 25% by the 2025 delivery year; increasing by at least 3%
6788+26 each delivery year thereafter to at least 40% by the 2030
6789+
6790+
6791+
6792+
6793+
6794+ SB1699 Enrolled - 189 - LRB103 27684 AMQ 54061 b
6795+
6796+
6797+SB1699 Enrolled- 190 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 190 - LRB103 27684 AMQ 54061 b
6798+ SB1699 Enrolled - 190 - LRB103 27684 AMQ 54061 b
6799+1 delivery year, and continuing at no less than 40% for each
6800+2 delivery year thereafter. The Agency shall attempt to
6801+3 procure 50% by delivery year 2040. The Agency shall
6802+4 determine the annual increase between delivery year 2030
6803+5 and delivery year 2040, if any, taking into account energy
6804+6 demand, other energy resources, and other public policy
6805+7 goals. In the event of a conflict between these goals and
6806+8 the new wind, new photovoltaic, and hydropower procurement
6807+9 requirements described in items (i) through (iii) of
6808+10 subparagraph (C) of this paragraph (1), the long-term plan
6809+11 shall prioritize compliance with the new wind, new
6810+12 photovoltaic, and hydropower procurement requirements
6811+13 described in items (i) through (iii) of subparagraph (C)
6812+14 of this paragraph (1) over the annual percentage targets
6813+15 described in this subparagraph (B). The Agency shall not
6814+16 comply with the annual percentage targets described in
6815+17 this subparagraph (B) by procuring renewable energy
6816+18 credits that are unlikely to lead to the development of
6817+19 new renewable resources or new, modernized, or retooled
6818+20 hydropower facilities.
6819+21 For the delivery year beginning June 1, 2017, the
6820+22 procurement plan shall attempt to include, subject to the
6821+23 prioritization outlined in this subparagraph (B),
6822+24 cost-effective renewable energy resources equal to at
6823+25 least 13% of each utility's load for eligible retail
6824+26 customers and 13% of the applicable portion of each
6825+
6826+
6827+
6828+
6829+
6830+ SB1699 Enrolled - 190 - LRB103 27684 AMQ 54061 b
6831+
6832+
6833+SB1699 Enrolled- 191 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 191 - LRB103 27684 AMQ 54061 b
6834+ SB1699 Enrolled - 191 - LRB103 27684 AMQ 54061 b
6835+1 utility's load for retail customers who are not eligible
6836+2 retail customers, which applicable portion shall equal 50%
6837+3 of the utility's load for retail customers who are not
6838+4 eligible retail customers on February 28, 2017.
6839+5 For the delivery year beginning June 1, 2018, the
6840+6 procurement plan shall attempt to include, subject to the
6841+7 prioritization outlined in this subparagraph (B),
6842+8 cost-effective renewable energy resources equal to at
6843+9 least 14.5% of each utility's load for eligible retail
6844+10 customers and 14.5% of the applicable portion of each
6845+11 utility's load for retail customers who are not eligible
6846+12 retail customers, which applicable portion shall equal 75%
6847+13 of the utility's load for retail customers who are not
6848+14 eligible retail customers on February 28, 2017.
6849+15 For the delivery year beginning June 1, 2019, and for
6850+16 each year thereafter, the procurement plans shall attempt
6851+17 to include, subject to the prioritization outlined in this
6852+18 subparagraph (B), cost-effective renewable energy
6853+19 resources equal to a minimum percentage of each utility's
6854+20 load for all retail customers as follows: 16% by June 1,
6855+21 2019; increasing by 1.5% each year thereafter to 25% by
6856+22 June 1, 2025; and 25% by June 1, 2026; increasing by at
6857+23 least 3% each delivery year thereafter to at least 40% by
6858+24 the 2030 delivery year, and continuing at no less than 40%
6859+25 for each delivery year thereafter. The Agency shall
6860+26 attempt to procure 50% by delivery year 2040. The Agency
6861+
6862+
6863+
6864+
6865+
6866+ SB1699 Enrolled - 191 - LRB103 27684 AMQ 54061 b
6867+
6868+
6869+SB1699 Enrolled- 192 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 192 - LRB103 27684 AMQ 54061 b
6870+ SB1699 Enrolled - 192 - LRB103 27684 AMQ 54061 b
6871+1 shall determine the annual increase between delivery year
6872+2 2030 and delivery year 2040, if any, taking into account
6873+3 energy demand, other energy resources, and other public
6874+4 policy goals.
6875+5 For each delivery year, the Agency shall first
6876+6 recognize each utility's obligations for that delivery
6877+7 year under existing contracts. Any renewable energy
6878+8 credits under existing contracts, including renewable
6879+9 energy credits as part of renewable energy resources,
6880+10 shall be used to meet the goals set forth in this
6881+11 subsection (c) for the delivery year.
6882+12 (C) The long-term renewable resources procurement plan
6883+13 described in subparagraph (A) of this paragraph (1) shall
6884+14 include the procurement of renewable energy credits from
6885+15 new projects pursuant to the following terms:
6886+16 (i) At least 10,000,000 renewable energy credits
6887+17 delivered annually by the end of the 2021 delivery
6888+18 year, and increasing ratably to reach 45,000,000
6889+19 renewable energy credits delivered annually from new
6890+20 wind and solar projects by the end of delivery year
6891+21 2030 such that the goals in subparagraph (B) of this
6892+22 paragraph (1) are met entirely by procurements of
6893+23 renewable energy credits from new wind and
6894+24 photovoltaic projects. Of that amount, to the extent
6895+25 possible, the Agency shall procure 45% from wind and
6896+26 hydropower projects and 55% from photovoltaic
6897+
6898+
6899+
6900+
6901+
6902+ SB1699 Enrolled - 192 - LRB103 27684 AMQ 54061 b
6903+
6904+
6905+SB1699 Enrolled- 193 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 193 - LRB103 27684 AMQ 54061 b
6906+ SB1699 Enrolled - 193 - LRB103 27684 AMQ 54061 b
6907+1 projects. Of the amount to be procured from
6908+2 photovoltaic projects, the Agency shall procure: at
6909+3 least 50% from solar photovoltaic projects using the
6910+4 program outlined in subparagraph (K) of this paragraph
6911+5 (1) from distributed renewable energy generation
6912+6 devices or community renewable generation projects; at
6913+7 least 47% from utility-scale solar projects; at least
6914+8 3% from brownfield site photovoltaic projects that are
6915+9 not community renewable generation projects.
6916+10 In developing the long-term renewable resources
6917+11 procurement plan, the Agency shall consider other
6918+12 approaches, in addition to competitive procurements,
6919+13 that can be used to procure renewable energy credits
6920+14 from brownfield site photovoltaic projects and thereby
6921+15 help return blighted or contaminated land to
6922+16 productive use while enhancing public health and the
6923+17 well-being of Illinois residents, including those in
6924+18 environmental justice communities, as defined using
6925+19 existing methodologies and findings used by the Agency
6926+20 and its Administrator in its Illinois Solar for All
6927+21 Program. The Agency shall also consider other
6928+22 approaches, in addition to competitive procurements,
6929+23 to procure renewable energy credits from new and
6930+24 existing hydropower facilities to support the
6931+25 development and maintenance of these facilities. The
6932+26 Agency shall explore options to convert existing dams
6933+
6934+
6935+
6936+
6937+
6938+ SB1699 Enrolled - 193 - LRB103 27684 AMQ 54061 b
6939+
6940+
6941+SB1699 Enrolled- 194 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 194 - LRB103 27684 AMQ 54061 b
6942+ SB1699 Enrolled - 194 - LRB103 27684 AMQ 54061 b
6943+1 but shall not consider approaches to develop new dams
6944+2 where they do not already exist.
6945+3 (ii) In any given delivery year, if forecasted
6946+4 expenses are less than the maximum budget available
6947+5 under subparagraph (E) of this paragraph (1), the
6948+6 Agency shall continue to procure new renewable energy
6949+7 credits until that budget is exhausted in the manner
6950+8 outlined in item (i) of this subparagraph (C).
6951+9 (iii) For purposes of this Section:
6952+10 "New wind projects" means wind renewable energy
6953+11 facilities that are energized after June 1, 2017 for
6954+12 the delivery year commencing June 1, 2017.
6955+13 "New photovoltaic projects" means photovoltaic
6956+14 renewable energy facilities that are energized after
6957+15 June 1, 2017. Photovoltaic projects developed under
6958+16 Section 1-56 of this Act shall not apply towards the
6959+17 new photovoltaic project requirements in this
6960+18 subparagraph (C).
6961+19 For purposes of calculating whether the Agency has
6962+20 procured enough new wind and solar renewable energy
6963+21 credits required by this subparagraph (C), renewable
6964+22 energy facilities that have a multi-year renewable
6965+23 energy credit delivery contract with the utility
6966+24 through at least delivery year 2030 shall be
6967+25 considered new, however no renewable energy credits
6968+26 from contracts entered into before June 1, 2021 shall
6969+
6970+
6971+
6972+
6973+
6974+ SB1699 Enrolled - 194 - LRB103 27684 AMQ 54061 b
6975+
6976+
6977+SB1699 Enrolled- 195 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 195 - LRB103 27684 AMQ 54061 b
6978+ SB1699 Enrolled - 195 - LRB103 27684 AMQ 54061 b
6979+1 be used to calculate whether the Agency has procured
6980+2 the correct proportion of new wind and new solar
6981+3 contracts described in this subparagraph (C) for
6982+4 delivery year 2021 and thereafter.
6983+5 (D) Renewable energy credits shall be cost effective.
6984+6 For purposes of this subsection (c), "cost effective"
6985+7 means that the costs of procuring renewable energy
6986+8 resources do not cause the limit stated in subparagraph
6987+9 (E) of this paragraph (1) to be exceeded and, for
6988+10 renewable energy credits procured through a competitive
6989+11 procurement event, do not exceed benchmarks based on
6990+12 market prices for like products in the region. For
6991+13 purposes of this subsection (c), "like products" means
6992+14 contracts for renewable energy credits from the same or
6993+15 substantially similar technology, same or substantially
6994+16 similar vintage (new or existing), the same or
6995+17 substantially similar quantity, and the same or
6996+18 substantially similar contract length and structure.
6997+19 Benchmarks shall reflect development, financing, or
6998+20 related costs resulting from requirements imposed through
6999+21 other provisions of State law, including, but not limited
7000+22 to, requirements in subparagraphs (P) and (Q) of this
7001+23 paragraph (1) and the Renewable Energy Facilities
7002+24 Agricultural Impact Mitigation Act. Confidential
7003+25 benchmarks shall be developed by the procurement
7004+26 administrator, in consultation with the Commission staff,
7005+
7006+
7007+
7008+
7009+
7010+ SB1699 Enrolled - 195 - LRB103 27684 AMQ 54061 b
7011+
7012+
7013+SB1699 Enrolled- 196 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 196 - LRB103 27684 AMQ 54061 b
7014+ SB1699 Enrolled - 196 - LRB103 27684 AMQ 54061 b
7015+1 Agency staff, and the procurement monitor and shall be
7016+2 subject to Commission review and approval. If price
7017+3 benchmarks for like products in the region are not
7018+4 available, the procurement administrator shall establish
7019+5 price benchmarks based on publicly available data on
7020+6 regional technology costs and expected current and future
7021+7 regional energy prices. The benchmarks in this Section
7022+8 shall not be used to curtail or otherwise reduce
7023+9 contractual obligations entered into by or through the
7024+10 Agency prior to June 1, 2017 (the effective date of Public
7025+11 Act 99-906).
7026+12 (E) For purposes of this subsection (c), the required
7027+13 procurement of cost-effective renewable energy resources
7028+14 for a particular year commencing prior to June 1, 2017
7029+15 shall be measured as a percentage of the actual amount of
7030+16 electricity (megawatt-hours) supplied by the electric
7031+17 utility to eligible retail customers in the delivery year
7032+18 ending immediately prior to the procurement, and, for
7033+19 delivery years commencing on and after June 1, 2017, the
7034+20 required procurement of cost-effective renewable energy
7035+21 resources for a particular year shall be measured as a
7036+22 percentage of the actual amount of electricity
7037+23 (megawatt-hours) delivered by the electric utility in the
7038+24 delivery year ending immediately prior to the procurement,
7039+25 to all retail customers in its service territory. For
7040+26 purposes of this subsection (c), the amount paid per
7041+
7042+
7043+
7044+
7045+
7046+ SB1699 Enrolled - 196 - LRB103 27684 AMQ 54061 b
7047+
7048+
7049+SB1699 Enrolled- 197 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 197 - LRB103 27684 AMQ 54061 b
7050+ SB1699 Enrolled - 197 - LRB103 27684 AMQ 54061 b
7051+1 kilowatthour means the total amount paid for electric
7052+2 service expressed on a per kilowatthour basis. For
7053+3 purposes of this subsection (c), the total amount paid for
7054+4 electric service includes without limitation amounts paid
7055+5 for supply, transmission, capacity, distribution,
7056+6 surcharges, and add-on taxes.
7057+7 Notwithstanding the requirements of this subsection
7058+8 (c), the total of renewable energy resources procured
7059+9 under the procurement plan for any single year shall be
7060+10 subject to the limitations of this subparagraph (E). Such
7061+11 procurement shall be reduced for all retail customers
7062+12 based on the amount necessary to limit the annual
7063+13 estimated average net increase due to the costs of these
7064+14 resources included in the amounts paid by eligible retail
7065+15 customers in connection with electric service to no more
7066+16 than 4.25% of the amount paid per kilowatthour by those
7067+17 customers during the year ending May 31, 2009. To arrive
7068+18 at a maximum dollar amount of renewable energy resources
7069+19 to be procured for the particular delivery year, the
7070+20 resulting per kilowatthour amount shall be applied to the
7071+21 actual amount of kilowatthours of electricity delivered,
7072+22 or applicable portion of such amount as specified in
7073+23 paragraph (1) of this subsection (c), as applicable, by
7074+24 the electric utility in the delivery year immediately
7075+25 prior to the procurement to all retail customers in its
7076+26 service territory. The calculations required by this
7077+
7078+
7079+
7080+
7081+
7082+ SB1699 Enrolled - 197 - LRB103 27684 AMQ 54061 b
7083+
7084+
7085+SB1699 Enrolled- 198 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 198 - LRB103 27684 AMQ 54061 b
7086+ SB1699 Enrolled - 198 - LRB103 27684 AMQ 54061 b
7087+1 subparagraph (E) shall be made only once for each delivery
7088+2 year at the time that the renewable energy resources are
7089+3 procured. Once the determination as to the amount of
7090+4 renewable energy resources to procure is made based on the
7091+5 calculations set forth in this subparagraph (E) and the
7092+6 contracts procuring those amounts are executed, no
7093+7 subsequent rate impact determinations shall be made and no
7094+8 adjustments to those contract amounts shall be allowed.
7095+9 All costs incurred under such contracts shall be fully
7096+10 recoverable by the electric utility as provided in this
7097+11 Section.
7098+12 (F) If the limitation on the amount of renewable
7099+13 energy resources procured in subparagraph (E) of this
7100+14 paragraph (1) prevents the Agency from meeting all of the
7101+15 goals in this subsection (c), the Agency's long-term plan
7102+16 shall prioritize compliance with the requirements of this
7103+17 subsection (c) regarding renewable energy credits in the
7104+18 following order:
7105+19 (i) renewable energy credits under existing
7106+20 contractual obligations as of June 1, 2021;
7107+21 (i-5) funding for the Illinois Solar for All
7108+22 Program, as described in subparagraph (O) of this
7109+23 paragraph (1);
7110+24 (ii) renewable energy credits necessary to comply
7111+25 with the new wind and new photovoltaic procurement
7112+26 requirements described in items (i) through (iii) of
7113+
7114+
7115+
7116+
7117+
7118+ SB1699 Enrolled - 198 - LRB103 27684 AMQ 54061 b
7119+
7120+
7121+SB1699 Enrolled- 199 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 199 - LRB103 27684 AMQ 54061 b
7122+ SB1699 Enrolled - 199 - LRB103 27684 AMQ 54061 b
7123+1 subparagraph (C) of this paragraph (1); and
7124+2 (iii) renewable energy credits necessary to meet
7125+3 the remaining requirements of this subsection (c).
7126+4 (G) The following provisions shall apply to the
7127+5 Agency's procurement of renewable energy credits under
7128+6 this subsection (c):
7129+7 (i) Notwithstanding whether a long-term renewable
7130+8 resources procurement plan has been approved, the
7131+9 Agency shall conduct an initial forward procurement
7132+10 for renewable energy credits from new utility-scale
7133+11 wind projects within 160 days after June 1, 2017 (the
7134+12 effective date of Public Act 99-906). For the purposes
7135+13 of this initial forward procurement, the Agency shall
7136+14 solicit 15-year contracts for delivery of 1,000,000
7137+15 renewable energy credits delivered annually from new
7138+16 utility-scale wind projects to begin delivery on June
7139+17 1, 2019, if available, but not later than June 1, 2021,
7140+18 unless the project has delays in the establishment of
7141+19 an operating interconnection with the applicable
7142+20 transmission or distribution system as a result of the
7143+21 actions or inactions of the transmission or
7144+22 distribution provider, or other causes for force
7145+23 majeure as outlined in the procurement contract, in
7146+24 which case, not later than June 1, 2022. Payments to
7147+25 suppliers of renewable energy credits shall commence
7148+26 upon delivery. Renewable energy credits procured under
7149+
7150+
7151+
7152+
7153+
7154+ SB1699 Enrolled - 199 - LRB103 27684 AMQ 54061 b
7155+
7156+
7157+SB1699 Enrolled- 200 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 200 - LRB103 27684 AMQ 54061 b
7158+ SB1699 Enrolled - 200 - LRB103 27684 AMQ 54061 b
7159+1 this initial procurement shall be included in the
7160+2 Agency's long-term plan and shall apply to all
7161+3 renewable energy goals in this subsection (c).
7162+4 (ii) Notwithstanding whether a long-term renewable
7163+5 resources procurement plan has been approved, the
7164+6 Agency shall conduct an initial forward procurement
7165+7 for renewable energy credits from new utility-scale
7166+8 solar projects and brownfield site photovoltaic
7167+9 projects within one year after June 1, 2017 (the
7168+10 effective date of Public Act 99-906). For the purposes
7169+11 of this initial forward procurement, the Agency shall
7170+12 solicit 15-year contracts for delivery of 1,000,000
7171+13 renewable energy credits delivered annually from new
7172+14 utility-scale solar projects and brownfield site
7173+15 photovoltaic projects to begin delivery on June 1,
7174+16 2019, if available, but not later than June 1, 2021,
7175+17 unless the project has delays in the establishment of
7176+18 an operating interconnection with the applicable
7177+19 transmission or distribution system as a result of the
7178+20 actions or inactions of the transmission or
7179+21 distribution provider, or other causes for force
7180+22 majeure as outlined in the procurement contract, in
7181+23 which case, not later than June 1, 2022. The Agency may
7182+24 structure this initial procurement in one or more
7183+25 discrete procurement events. Payments to suppliers of
7184+26 renewable energy credits shall commence upon delivery.
7185+
7186+
7187+
7188+
7189+
7190+ SB1699 Enrolled - 200 - LRB103 27684 AMQ 54061 b
7191+
7192+
7193+SB1699 Enrolled- 201 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 201 - LRB103 27684 AMQ 54061 b
7194+ SB1699 Enrolled - 201 - LRB103 27684 AMQ 54061 b
7195+1 Renewable energy credits procured under this initial
7196+2 procurement shall be included in the Agency's
7197+3 long-term plan and shall apply to all renewable energy
7198+4 goals in this subsection (c).
7199+5 (iii) Notwithstanding whether the Commission has
7200+6 approved the periodic long-term renewable resources
7201+7 procurement plan revision described in Section
7202+8 16-111.5 of the Public Utilities Act, the Agency shall
7203+9 conduct at least one subsequent forward procurement
7204+10 for renewable energy credits from new utility-scale
7205+11 wind projects, new utility-scale solar projects, and
7206+12 new brownfield site photovoltaic projects within 240
7207+13 days after the effective date of this amendatory Act
7208+14 of the 102nd General Assembly in quantities necessary
7209+15 to meet the requirements of subparagraph (C) of this
7210+16 paragraph (1) through the delivery year beginning June
7211+17 1, 2021.
7212+18 (iv) Notwithstanding whether the Commission has
7213+19 approved the periodic long-term renewable resources
7214+20 procurement plan revision described in Section
7215+21 16-111.5 of the Public Utilities Act, the Agency shall
7216+22 open capacity for each category in the Adjustable
7217+23 Block program within 90 days after the effective date
7218+24 of this amendatory Act of the 102nd General Assembly
7219+25 manner:
7220+26 (1) The Agency shall open the first block of
7221+
7222+
7223+
7224+
7225+
7226+ SB1699 Enrolled - 201 - LRB103 27684 AMQ 54061 b
7227+
7228+
7229+SB1699 Enrolled- 202 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 202 - LRB103 27684 AMQ 54061 b
7230+ SB1699 Enrolled - 202 - LRB103 27684 AMQ 54061 b
7231+1 annual capacity for the category described in item
7232+2 (i) of subparagraph (K) of this paragraph (1). The
7233+3 first block of annual capacity for item (i) shall
7234+4 be for at least 75 megawatts of total nameplate
7235+5 capacity. The price of the renewable energy credit
7236+6 for this block of capacity shall be 4% less than
7237+7 the price of the last open block in this category.
7238+8 Projects on a waitlist shall be awarded contracts
7239+9 first in the order in which they appear on the
7240+10 waitlist. Notwithstanding anything to the
7241+11 contrary, for those renewable energy credits that
7242+12 qualify and are procured under this subitem (1) of
7243+13 this item (iv), the renewable energy credit
7244+14 delivery contract value shall be paid in full,
7245+15 based on the estimated generation during the first
7246+16 15 years of operation, by the contracting
7247+17 utilities at the time that the facility producing
7248+18 the renewable energy credits is interconnected at
7249+19 the distribution system level of the utility and
7250+20 verified as energized and in compliance by the
7251+21 Program Administrator. The electric utility shall
7252+22 receive and retire all renewable energy credits
7253+23 generated by the project for the first 15 years of
7254+24 operation. Renewable energy credits generated by
7255+25 the project thereafter shall not be transferred
7256+26 under the renewable energy credit delivery
7257+
7258+
7259+
7260+
7261+
7262+ SB1699 Enrolled - 202 - LRB103 27684 AMQ 54061 b
7263+
7264+
7265+SB1699 Enrolled- 203 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 203 - LRB103 27684 AMQ 54061 b
7266+ SB1699 Enrolled - 203 - LRB103 27684 AMQ 54061 b
7267+1 contract with the counterparty electric utility.
7268+2 (2) The Agency shall open the first block of
7269+3 annual capacity for the category described in item
7270+4 (ii) of subparagraph (K) of this paragraph (1).
7271+5 The first block of annual capacity for item (ii)
7272+6 shall be for at least 75 megawatts of total
7273+7 nameplate capacity.
7274+8 (A) The price of the renewable energy
7275+9 credit for any project on a waitlist for this
7276+10 category before the opening of this block
7277+11 shall be 4% less than the price of the last
7278+12 open block in this category. Projects on the
7279+13 waitlist shall be awarded contracts first in
7280+14 the order in which they appear on the
7281+15 waitlist. Any projects that are less than or
7282+16 equal to 25 kilowatts in size on the waitlist
7283+17 for this capacity shall be moved to the
7284+18 waitlist for paragraph (1) of this item (iv).
7285+19 Notwithstanding anything to the contrary,
7286+20 projects that were on the waitlist prior to
7287+21 opening of this block shall not be required to
7288+22 be in compliance with the requirements of
7289+23 subparagraph (Q) of this paragraph (1) of this
7290+24 subsection (c). Notwithstanding anything to
7291+25 the contrary, for those renewable energy
7292+26 credits procured from projects that were on
7293+
7294+
7295+
7296+
7297+
7298+ SB1699 Enrolled - 203 - LRB103 27684 AMQ 54061 b
7299+
7300+
7301+SB1699 Enrolled- 204 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 204 - LRB103 27684 AMQ 54061 b
7302+ SB1699 Enrolled - 204 - LRB103 27684 AMQ 54061 b
7303+1 the waitlist for this category before the
7304+2 opening of this block 20% of the renewable
7305+3 energy credit delivery contract value, based
7306+4 on the estimated generation during the first
7307+5 15 years of operation, shall be paid by the
7308+6 contracting utilities at the time that the
7309+7 facility producing the renewable energy
7310+8 credits is interconnected at the distribution
7311+9 system level of the utility and verified as
7312+10 energized by the Program Administrator. The
7313+11 remaining portion shall be paid ratably over
7314+12 the subsequent 4-year period. The electric
7315+13 utility shall receive and retire all renewable
7316+14 energy credits generated by the project during
7317+15 the first 15 years of operation. Renewable
7318+16 energy credits generated by the project
7319+17 thereafter shall not be transferred under the
7320+18 renewable energy credit delivery contract with
7321+19 the counterparty electric utility.
7322+20 (B) The price of renewable energy credits
7323+21 for any project not on the waitlist for this
7324+22 category before the opening of the block shall
7325+23 be determined and published by the Agency.
7326+24 Projects not on a waitlist as of the opening
7327+25 of this block shall be subject to the
7328+26 requirements of subparagraph (Q) of this
7329+
7330+
7331+
7332+
7333+
7334+ SB1699 Enrolled - 204 - LRB103 27684 AMQ 54061 b
7335+
7336+
7337+SB1699 Enrolled- 205 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 205 - LRB103 27684 AMQ 54061 b
7338+ SB1699 Enrolled - 205 - LRB103 27684 AMQ 54061 b
7339+1 paragraph (1), as applicable. Projects not on
7340+2 a waitlist as of the opening of this block
7341+3 shall be subject to the contract provisions
7342+4 outlined in item (iii) of subparagraph (L) of
7343+5 this paragraph (1). The Agency shall strive to
7344+6 publish updated prices and an updated
7345+7 renewable energy credit delivery contract as
7346+8 quickly as possible.
7347+9 (3) For opening the first 2 blocks of annual
7348+10 capacity for projects participating in item (iii)
7349+11 of subparagraph (K) of paragraph (1) of subsection
7350+12 (c), projects shall be selected exclusively from
7351+13 those projects on the ordinal waitlists of
7352+14 community renewable generation projects
7353+15 established by the Agency based on the status of
7354+16 those ordinal waitlists as of December 31, 2020,
7355+17 and only those projects previously determined to
7356+18 be eligible for the Agency's April 2019 community
7357+19 solar project selection process.
7358+20 The first 2 blocks of annual capacity for item
7359+21 (iii) shall be for 250 megawatts of total
7360+22 nameplate capacity, with both blocks opening
7361+23 simultaneously under the schedule outlined in the
7362+24 paragraphs below. Projects shall be selected as
7363+25 follows:
7364+26 (A) The geographic balance of selected
7365+
7366+
7367+
7368+
7369+
7370+ SB1699 Enrolled - 205 - LRB103 27684 AMQ 54061 b
7371+
7372+
7373+SB1699 Enrolled- 206 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 206 - LRB103 27684 AMQ 54061 b
7374+ SB1699 Enrolled - 206 - LRB103 27684 AMQ 54061 b
7375+1 projects shall follow the Group classification
7376+2 found in the Agency's Revised Long-Term
7377+3 Renewable Resources Procurement Plan, with 70%
7378+4 of capacity allocated to projects on the Group
7379+5 B waitlist and 30% of capacity allocated to
7380+6 projects on the Group A waitlist.
7381+7 (B) Contract awards for waitlisted
7382+8 projects shall be allocated proportionate to
7383+9 the total nameplate capacity amount across
7384+10 both ordinal waitlists associated with that
7385+11 applicant firm or its affiliates, subject to
7386+12 the following conditions.
7387+13 (i) Each applicant firm having a
7388+14 waitlisted project eligible for selection
7389+15 shall receive no less than 500 kilowatts
7390+16 in awarded capacity across all groups, and
7391+17 no approved vendor may receive more than
7392+18 20% of each Group's waitlist allocation.
7393+19 (ii) Each applicant firm, upon
7394+20 receiving an award of program capacity
7395+21 proportionate to its waitlisted capacity,
7396+22 may then determine which waitlisted
7397+23 projects it chooses to be selected for a
7398+24 contract award up to that capacity amount.
7399+25 (iii) Assuming all other program
7400+26 requirements are met, applicant firms may
7401+
7402+
7403+
7404+
7405+
7406+ SB1699 Enrolled - 206 - LRB103 27684 AMQ 54061 b
7407+
7408+
7409+SB1699 Enrolled- 207 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 207 - LRB103 27684 AMQ 54061 b
7410+ SB1699 Enrolled - 207 - LRB103 27684 AMQ 54061 b
7411+1 adjust the nameplate capacity of applicant
7412+2 projects without losing waitlist
7413+3 eligibility, so long as no project is
7414+4 greater than 2,000 kilowatts in size.
7415+5 (iv) Assuming all other program
7416+6 requirements are met, applicant firms may
7417+7 adjust the expected production associated
7418+8 with applicant projects, subject to
7419+9 verification by the Program Administrator.
7420+10 (C) After a review of affiliate
7421+11 information and the current ordinal waitlists,
7422+12 the Agency shall announce the nameplate
7423+13 capacity award amounts associated with
7424+14 applicant firms no later than 90 days after
7425+15 the effective date of this amendatory Act of
7426+16 the 102nd General Assembly.
7427+17 (D) Applicant firms shall submit their
7428+18 portfolio of projects used to satisfy those
7429+19 contract awards no less than 90 days after the
7430+20 Agency's announcement. The total nameplate
7431+21 capacity of all projects used to satisfy that
7432+22 portfolio shall be no greater than the
7433+23 Agency's nameplate capacity award amount
7434+24 associated with that applicant firm. An
7435+25 applicant firm may decline, in whole or in
7436+26 part, its nameplate capacity award without
7437+
7438+
7439+
7440+
7441+
7442+ SB1699 Enrolled - 207 - LRB103 27684 AMQ 54061 b
7443+
7444+
7445+SB1699 Enrolled- 208 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 208 - LRB103 27684 AMQ 54061 b
7446+ SB1699 Enrolled - 208 - LRB103 27684 AMQ 54061 b
7447+1 penalty, with such unmet capacity rolled over
7448+2 to the next block opening for project
7449+3 selection under item (iii) of subparagraph (K)
7450+4 of this subsection (c). Any projects not
7451+5 included in an applicant firm's portfolio may
7452+6 reapply without prejudice upon the next block
7453+7 reopening for project selection under item
7454+8 (iii) of subparagraph (K) of this subsection
7455+9 (c).
7456+10 (E) The renewable energy credit delivery
7457+11 contract shall be subject to the contract and
7458+12 payment terms outlined in item (iv) of
7459+13 subparagraph (L) of this subsection (c).
7460+14 Contract instruments used for this
7461+15 subparagraph shall contain the following
7462+16 terms:
7463+17 (i) Renewable energy credit prices
7464+18 shall be fixed, without further adjustment
7465+19 under any other provision of this Act or
7466+20 for any other reason, at 10% lower than
7467+21 prices applicable to the last open block
7468+22 for this category, inclusive of any adders
7469+23 available for achieving a minimum of 50%
7470+24 of subscribers to the project's nameplate
7471+25 capacity being residential or small
7472+26 commercial customers with subscriptions of
7473+
7474+
7475+
7476+
7477+
7478+ SB1699 Enrolled - 208 - LRB103 27684 AMQ 54061 b
7479+
7480+
7481+SB1699 Enrolled- 209 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 209 - LRB103 27684 AMQ 54061 b
7482+ SB1699 Enrolled - 209 - LRB103 27684 AMQ 54061 b
7483+1 below 25 kilowatts in size;
7484+2 (ii) A requirement that a minimum of
7485+3 50% of subscribers to the project's
7486+4 nameplate capacity be residential or small
7487+5 commercial customers with subscriptions of
7488+6 below 25 kilowatts in size;
7489+7 (iii) Permission for the ability of a
7490+8 contract holder to substitute projects
7491+9 with other waitlisted projects without
7492+10 penalty should a project receive a
7493+11 non-binding estimate of costs to construct
7494+12 the interconnection facilities and any
7495+13 required distribution upgrades associated
7496+14 with that project of greater than 30 cents
7497+15 per watt AC of that project's nameplate
7498+16 capacity. In developing the applicable
7499+17 contract instrument, the Agency may
7500+18 consider whether other circumstances
7501+19 outside of the control of the applicant
7502+20 firm should also warrant project
7503+21 substitution rights.
7504+22 The Agency shall publish a finalized
7505+23 updated renewable energy credit delivery
7506+24 contract developed consistent with these terms
7507+25 and conditions no less than 30 days before
7508+26 applicant firms must submit their portfolio of
7509+
7510+
7511+
7512+
7513+
7514+ SB1699 Enrolled - 209 - LRB103 27684 AMQ 54061 b
7515+
7516+
7517+SB1699 Enrolled- 210 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 210 - LRB103 27684 AMQ 54061 b
7518+ SB1699 Enrolled - 210 - LRB103 27684 AMQ 54061 b
7519+1 projects pursuant to item (D).
7520+2 (F) To be eligible for an award, the
7521+3 applicant firm shall certify that not less
7522+4 than prevailing wage, as determined pursuant
7523+5 to the Illinois Prevailing Wage Act, was or
7524+6 will be paid to employees who are engaged in
7525+7 construction activities associated with a
7526+8 selected project.
7527+9 (4) The Agency shall open the first block of
7528+10 annual capacity for the category described in item
7529+11 (iv) of subparagraph (K) of this paragraph (1).
7530+12 The first block of annual capacity for item (iv)
7531+13 shall be for at least 50 megawatts of total
7532+14 nameplate capacity. Renewable energy credit prices
7533+15 shall be fixed, without further adjustment under
7534+16 any other provision of this Act or for any other
7535+17 reason, at the price in the last open block in the
7536+18 category described in item (ii) of subparagraph
7537+19 (K) of this paragraph (1). Pricing for future
7538+20 blocks of annual capacity for this category may be
7539+21 adjusted in the Agency's second revision to its
7540+22 Long-Term Renewable Resources Procurement Plan.
7541+23 Projects in this category shall be subject to the
7542+24 contract terms outlined in item (iv) of
7543+25 subparagraph (L) of this paragraph (1).
7544+26 (5) The Agency shall open the equivalent of 2
7545+
7546+
7547+
7548+
7549+
7550+ SB1699 Enrolled - 210 - LRB103 27684 AMQ 54061 b
7551+
7552+
7553+SB1699 Enrolled- 211 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 211 - LRB103 27684 AMQ 54061 b
7554+ SB1699 Enrolled - 211 - LRB103 27684 AMQ 54061 b
7555+1 years of annual capacity for the category
7556+2 described in item (v) of subparagraph (K) of this
7557+3 paragraph (1). The first block of annual capacity
7558+4 for item (v) shall be for at least 10 megawatts of
7559+5 total nameplate capacity. Notwithstanding the
7560+6 provisions of item (v) of subparagraph (K) of this
7561+7 paragraph (1), for the purpose of this initial
7562+8 block, the agency shall accept new project
7563+9 applications intended to increase the diversity of
7564+10 areas hosting community solar projects, the
7565+11 business models of projects, and the size of
7566+12 projects, as described by the Agency in its
7567+13 long-term renewable resources procurement plan
7568+14 that is approved as of the effective date of this
7569+15 amendatory Act of the 102nd General Assembly.
7570+16 Projects in this category shall be subject to the
7571+17 contract terms outlined in item (iii) of
7572+18 subsection (L) of this paragraph (1).
7573+19 (6) The Agency shall open the first blocks of
7574+20 annual capacity for the category described in item
7575+21 (vi) of subparagraph (K) of this paragraph (1),
7576+22 with allocations of capacity within the block
7577+23 generally matching the historical share of block
7578+24 capacity allocated between the category described
7579+25 in items (i) and (ii) of subparagraph (K) of this
7580+26 paragraph (1). The first two blocks of annual
7581+
7582+
7583+
7584+
7585+
7586+ SB1699 Enrolled - 211 - LRB103 27684 AMQ 54061 b
7587+
7588+
7589+SB1699 Enrolled- 212 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 212 - LRB103 27684 AMQ 54061 b
7590+ SB1699 Enrolled - 212 - LRB103 27684 AMQ 54061 b
7591+1 capacity for item (vi) shall be for at least 75
7592+2 megawatts of total nameplate capacity. The price
7593+3 of renewable energy credits for the blocks of
7594+4 capacity shall be 4% less than the price of the
7595+5 last open blocks in the categories described in
7596+6 items (i) and (ii) of subparagraph (K) of this
7597+7 paragraph (1). Pricing for future blocks of annual
7598+8 capacity for this category may be adjusted in the
7599+9 Agency's second revision to its Long-Term
7600+10 Renewable Resources Procurement Plan. Projects in
7601+11 this category shall be subject to the applicable
7602+12 contract terms outlined in items (ii) and (iii) of
7603+13 subparagraph (L) of this paragraph (1).
7604+14 (v) Upon the effective date of this amendatory Act
7605+15 of the 102nd General Assembly, for all competitive
7606+16 procurements and any procurements of renewable energy
7607+17 credit from new utility-scale wind and new
7608+18 utility-scale photovoltaic projects, the Agency shall
7609+19 procure indexed renewable energy credits and direct
7610+20 respondents to offer a strike price.
7611+21 (1) The purchase price of the indexed
7612+22 renewable energy credit payment shall be
7613+23 calculated for each settlement period. That
7614+24 payment, for any settlement period, shall be equal
7615+25 to the difference resulting from subtracting the
7616+26 strike price from the index price for that
7617+
7618+
7619+
7620+
7621+
7622+ SB1699 Enrolled - 212 - LRB103 27684 AMQ 54061 b
7623+
7624+
7625+SB1699 Enrolled- 213 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 213 - LRB103 27684 AMQ 54061 b
7626+ SB1699 Enrolled - 213 - LRB103 27684 AMQ 54061 b
7627+1 settlement period. If this difference results in a
7628+2 negative number, the indexed REC counterparty
7629+3 shall owe the seller the absolute value multiplied
7630+4 by the quantity of energy produced in the relevant
7631+5 settlement period. If this difference results in a
7632+6 positive number, the seller shall owe the indexed
7633+7 REC counterparty this amount multiplied by the
7634+8 quantity of energy produced in the relevant
7635+9 settlement period.
7636+10 (2) Parties shall cash settle every month,
7637+11 summing up all settlements (both positive and
7638+12 negative, if applicable) for the prior month.
7639+13 (3) To ensure funding in the annual budget
7640+14 established under subparagraph (E) for indexed
7641+15 renewable energy credit procurements for each year
7642+16 of the term of such contracts, which must have a
7643+17 minimum tenure of 20 calendar years, the
7644+18 procurement administrator, Agency, Commission
7645+19 staff, and procurement monitor shall quantify the
7646+20 annual cost of the contract by utilizing an
7647+21 industry-standard, third-party forward price curve
7648+22 for energy at the appropriate hub or load zone,
7649+23 including the estimated magnitude and timing of
7650+24 the price effects related to federal carbon
7651+25 controls. Each forward price curve shall contain a
7652+26 specific value of the forecasted market price of
7653+
7654+
7655+
7656+
7657+
7658+ SB1699 Enrolled - 213 - LRB103 27684 AMQ 54061 b
7659+
7660+
7661+SB1699 Enrolled- 214 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 214 - LRB103 27684 AMQ 54061 b
7662+ SB1699 Enrolled - 214 - LRB103 27684 AMQ 54061 b
7663+1 electricity for each annual delivery year of the
7664+2 contract. For procurement planning purposes, the
7665+3 impact on the annual budget for the cost of
7666+4 indexed renewable energy credits for each delivery
7667+5 year shall be determined as the expected annual
7668+6 contract expenditure for that year, equaling the
7669+7 difference between (i) the sum across all relevant
7670+8 contracts of the applicable strike price
7671+9 multiplied by contract quantity and (ii) the sum
7672+10 across all relevant contracts of the forward price
7673+11 curve for the applicable load zone for that year
7674+12 multiplied by contract quantity. The contracting
7675+13 utility shall not assume an obligation in excess
7676+14 of the estimated annual cost of the contracts for
7677+15 indexed renewable energy credits. Forward curves
7678+16 shall be revised on an annual basis as updated
7679+17 forward price curves are released and filed with
7680+18 the Commission in the proceeding approving the
7681+19 Agency's most recent long-term renewable resources
7682+20 procurement plan. If the expected contract spend
7683+21 is higher or lower than the total quantity of
7684+22 contracts multiplied by the forward price curve
7685+23 value for that year, the forward price curve shall
7686+24 be updated by the procurement administrator, in
7687+25 consultation with the Agency, Commission staff,
7688+26 and procurement monitors, using then-currently
7689+
7690+
7691+
7692+
7693+
7694+ SB1699 Enrolled - 214 - LRB103 27684 AMQ 54061 b
7695+
7696+
7697+SB1699 Enrolled- 215 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 215 - LRB103 27684 AMQ 54061 b
7698+ SB1699 Enrolled - 215 - LRB103 27684 AMQ 54061 b
7699+1 available price forecast data and additional
7700+2 budget dollars shall be obligated or reobligated
7701+3 as appropriate.
7702+4 (4) To ensure that indexed renewable energy
7703+5 credit prices remain predictable and affordable,
7704+6 the Agency may consider the institution of a price
7705+7 collar on REC prices paid under indexed renewable
7706+8 energy credit procurements establishing floor and
7707+9 ceiling REC prices applicable to indexed REC
7708+10 contract prices. Any price collars applicable to
7709+11 indexed REC procurements shall be proposed by the
7710+12 Agency through its long-term renewable resources
7711+13 procurement plan.
7712+14 (vi) All procurements under this subparagraph (G),
7713+15 including the procurement of renewable energy credits
7714+16 from hydropower facilities, shall comply with the
7715+17 geographic requirements in subparagraph (I) of this
7716+18 paragraph (1) and shall follow the procurement
7717+19 processes and procedures described in this Section and
7718+20 Section 16-111.5 of the Public Utilities Act to the
7719+21 extent practicable, and these processes and procedures
7720+22 may be expedited to accommodate the schedule
7721+23 established by this subparagraph (G).
7722+24 (vii) On and after the effective date of this
7723+25 amendatory Act of the 103rd General Assembly, for all
7724+26 procurements of renewable energy credits from
7725+
7726+
7727+
7728+
7729+
7730+ SB1699 Enrolled - 215 - LRB103 27684 AMQ 54061 b
7731+
7732+
7733+SB1699 Enrolled- 216 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 216 - LRB103 27684 AMQ 54061 b
7734+ SB1699 Enrolled - 216 - LRB103 27684 AMQ 54061 b
7735+1 hydropower facilities, the Agency shall establish
7736+2 contract terms designed to optimize existing
7737+3 hydropower facilities through modernization or
7738+4 retooling and establish new hydropower facilities at
7739+5 existing dams. Procurements made under this item (vii)
7740+6 shall prioritize projects located in designated
7741+7 environmental justice communities, as defined in
7742+8 subsection (b) of Section 1-56 of this Act, or in
7743+9 projects located in units of local government with
7744+10 median incomes that do not exceed 82% of the median
7745+11 income of the State.
7746+12 (H) The procurement of renewable energy resources for
7747+13 a given delivery year shall be reduced as described in
7748+14 this subparagraph (H) if an alternative retail electric
7749+15 supplier meets the requirements described in this
7750+16 subparagraph (H).
7751+17 (i) Within 45 days after June 1, 2017 (the
7752+18 effective date of Public Act 99-906), an alternative
7753+19 retail electric supplier or its successor shall submit
7754+20 an informational filing to the Illinois Commerce
7755+21 Commission certifying that, as of December 31, 2015,
7756+22 the alternative retail electric supplier owned one or
7757+23 more electric generating facilities that generates
7758+24 renewable energy resources as defined in Section 1-10
7759+25 of this Act, provided that such facilities are not
7760+26 powered by wind or photovoltaics, and the facilities
7761+
7762+
7763+
7764+
7765+
7766+ SB1699 Enrolled - 216 - LRB103 27684 AMQ 54061 b
7767+
7768+
7769+SB1699 Enrolled- 217 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 217 - LRB103 27684 AMQ 54061 b
7770+ SB1699 Enrolled - 217 - LRB103 27684 AMQ 54061 b
7771+1 generate one renewable energy credit for each
7772+2 megawatthour of energy produced from the facility.
7773+3 The informational filing shall identify each
7774+4 facility that was eligible to satisfy the alternative
7775+5 retail electric supplier's obligations under Section
7776+6 16-115D of the Public Utilities Act as described in
7777+7 this item (i).
7778+8 (ii) For a given delivery year, the alternative
7779+9 retail electric supplier may elect to supply its
7780+10 retail customers with renewable energy credits from
7781+11 the facility or facilities described in item (i) of
7782+12 this subparagraph (H) that continue to be owned by the
7783+13 alternative retail electric supplier.
7784+14 (iii) The alternative retail electric supplier
7785+15 shall notify the Agency and the applicable utility, no
7786+16 later than February 28 of the year preceding the
7787+17 applicable delivery year or 15 days after June 1, 2017
7788+18 (the effective date of Public Act 99-906), whichever
7789+19 is later, of its election under item (ii) of this
7790+20 subparagraph (H) to supply renewable energy credits to
7791+21 retail customers of the utility. Such election shall
7792+22 identify the amount of renewable energy credits to be
7793+23 supplied by the alternative retail electric supplier
7794+24 to the utility's retail customers and the source of
7795+25 the renewable energy credits identified in the
7796+26 informational filing as described in item (i) of this
7797+
7798+
7799+
7800+
7801+
7802+ SB1699 Enrolled - 217 - LRB103 27684 AMQ 54061 b
7803+
7804+
7805+SB1699 Enrolled- 218 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 218 - LRB103 27684 AMQ 54061 b
7806+ SB1699 Enrolled - 218 - LRB103 27684 AMQ 54061 b
7807+1 subparagraph (H), subject to the following
7808+2 limitations:
7809+3 For the delivery year beginning June 1, 2018,
7810+4 the maximum amount of renewable energy credits to
7811+5 be supplied by an alternative retail electric
7812+6 supplier under this subparagraph (H) shall be 68%
7813+7 multiplied by 25% multiplied by 14.5% multiplied
7814+8 by the amount of metered electricity
7815+9 (megawatt-hours) delivered by the alternative
7816+10 retail electric supplier to Illinois retail
7817+11 customers during the delivery year ending May 31,
7818+12 2016.
7819+13 For delivery years beginning June 1, 2019 and
7820+14 each year thereafter, the maximum amount of
7821+15 renewable energy credits to be supplied by an
7822+16 alternative retail electric supplier under this
7823+17 subparagraph (H) shall be 68% multiplied by 50%
7824+18 multiplied by 16% multiplied by the amount of
7825+19 metered electricity (megawatt-hours) delivered by
7826+20 the alternative retail electric supplier to
7827+21 Illinois retail customers during the delivery year
7828+22 ending May 31, 2016, provided that the 16% value
7829+23 shall increase by 1.5% each delivery year
7830+24 thereafter to 25% by the delivery year beginning
7831+25 June 1, 2025, and thereafter the 25% value shall
7832+26 apply to each delivery year.
7833+
7834+
7835+
7836+
7837+
7838+ SB1699 Enrolled - 218 - LRB103 27684 AMQ 54061 b
7839+
7840+
7841+SB1699 Enrolled- 219 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 219 - LRB103 27684 AMQ 54061 b
7842+ SB1699 Enrolled - 219 - LRB103 27684 AMQ 54061 b
7843+1 For each delivery year, the total amount of
7844+2 renewable energy credits supplied by all alternative
7845+3 retail electric suppliers under this subparagraph (H)
7846+4 shall not exceed 9% of the Illinois target renewable
7847+5 energy credit quantity. The Illinois target renewable
7848+6 energy credit quantity for the delivery year beginning
7849+7 June 1, 2018 is 14.5% multiplied by the total amount of
7850+8 metered electricity (megawatt-hours) delivered in the
7851+9 delivery year immediately preceding that delivery
7852+10 year, provided that the 14.5% shall increase by 1.5%
7853+11 each delivery year thereafter to 25% by the delivery
7854+12 year beginning June 1, 2025, and thereafter the 25%
7855+13 value shall apply to each delivery year.
7856+14 If the requirements set forth in items (i) through
7857+15 (iii) of this subparagraph (H) are met, the charges
7858+16 that would otherwise be applicable to the retail
7859+17 customers of the alternative retail electric supplier
7860+18 under paragraph (6) of this subsection (c) for the
7861+19 applicable delivery year shall be reduced by the ratio
7862+20 of the quantity of renewable energy credits supplied
7863+21 by the alternative retail electric supplier compared
7864+22 to that supplier's target renewable energy credit
7865+23 quantity. The supplier's target renewable energy
7866+24 credit quantity for the delivery year beginning June
7867+25 1, 2018 is 14.5% multiplied by the total amount of
7868+26 metered electricity (megawatt-hours) delivered by the
7869+
7870+
7871+
7872+
7873+
7874+ SB1699 Enrolled - 219 - LRB103 27684 AMQ 54061 b
7875+
7876+
7877+SB1699 Enrolled- 220 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 220 - LRB103 27684 AMQ 54061 b
7878+ SB1699 Enrolled - 220 - LRB103 27684 AMQ 54061 b
7879+1 alternative retail supplier in that delivery year,
7880+2 provided that the 14.5% shall increase by 1.5% each
7881+3 delivery year thereafter to 25% by the delivery year
7882+4 beginning June 1, 2025, and thereafter the 25% value
7883+5 shall apply to each delivery year.
7884+6 On or before April 1 of each year, the Agency shall
7885+7 annually publish a report on its website that
7886+8 identifies the aggregate amount of renewable energy
7887+9 credits supplied by alternative retail electric
7888+10 suppliers under this subparagraph (H).
7889+11 (I) The Agency shall design its long-term renewable
7890+12 energy procurement plan to maximize the State's interest
7891+13 in the health, safety, and welfare of its residents,
7892+14 including but not limited to minimizing sulfur dioxide,
7893+15 nitrogen oxide, particulate matter and other pollution
7894+16 that adversely affects public health in this State,
7895+17 increasing fuel and resource diversity in this State,
7896+18 enhancing the reliability and resiliency of the
7897+19 electricity distribution system in this State, meeting
7898+20 goals to limit carbon dioxide emissions under federal or
7899+21 State law, and contributing to a cleaner and healthier
7900+22 environment for the citizens of this State. In order to
7901+23 further these legislative purposes, renewable energy
7902+24 credits shall be eligible to be counted toward the
7903+25 renewable energy requirements of this subsection (c) if
7904+26 they are generated from facilities located in this State.
7905+
7906+
7907+
7908+
7909+
7910+ SB1699 Enrolled - 220 - LRB103 27684 AMQ 54061 b
7911+
7912+
7913+SB1699 Enrolled- 221 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 221 - LRB103 27684 AMQ 54061 b
7914+ SB1699 Enrolled - 221 - LRB103 27684 AMQ 54061 b
7915+1 The Agency may qualify renewable energy credits from
7916+2 facilities located in states adjacent to Illinois or
7917+3 renewable energy credits associated with the electricity
7918+4 generated by a utility-scale wind energy facility or
7919+5 utility-scale photovoltaic facility and transmitted by a
7920+6 qualifying direct current project described in subsection
7921+7 (b-5) of Section 8-406 of the Public Utilities Act to a
7922+8 delivery point on the electric transmission grid located
7923+9 in this State or a state adjacent to Illinois, if the
7924+10 generator demonstrates and the Agency determines that the
7925+11 operation of such facility or facilities will help promote
7926+12 the State's interest in the health, safety, and welfare of
7927+13 its residents based on the public interest criteria
7928+14 described above. For the purposes of this Section,
7929+15 renewable resources that are delivered via a high voltage
7930+16 direct current converter station located in Illinois shall
7931+17 be deemed generated in Illinois at the time and location
7932+18 the energy is converted to alternating current by the high
7933+19 voltage direct current converter station if the high
7934+20 voltage direct current transmission line: (i) after the
7935+21 effective date of this amendatory Act of the 102nd General
7936+22 Assembly, was constructed with a project labor agreement;
7937+23 (ii) is capable of transmitting electricity at 525kv;
7938+24 (iii) has an Illinois converter station located and
7939+25 interconnected in the region of the PJM Interconnection,
7940+26 LLC; (iv) does not operate as a public utility; and (v) if
7941+
7942+
7943+
7944+
7945+
7946+ SB1699 Enrolled - 221 - LRB103 27684 AMQ 54061 b
7947+
7948+
7949+SB1699 Enrolled- 222 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 222 - LRB103 27684 AMQ 54061 b
7950+ SB1699 Enrolled - 222 - LRB103 27684 AMQ 54061 b
7951+1 the high voltage direct current transmission line was
7952+2 energized after June 1, 2023. To ensure that the public
7953+3 interest criteria are applied to the procurement and given
7954+4 full effect, the Agency's long-term procurement plan shall
7955+5 describe in detail how each public interest factor shall
7956+6 be considered and weighted for facilities located in
7957+7 states adjacent to Illinois.
7958+8 (J) In order to promote the competitive development of
7959+9 renewable energy resources in furtherance of the State's
7960+10 interest in the health, safety, and welfare of its
7961+11 residents, renewable energy credits shall not be eligible
7962+12 to be counted toward the renewable energy requirements of
7963+13 this subsection (c) if they are sourced from a generating
7964+14 unit whose costs were being recovered through rates
7965+15 regulated by this State or any other state or states on or
7966+16 after January 1, 2017. Each contract executed to purchase
7967+17 renewable energy credits under this subsection (c) shall
7968+18 provide for the contract's termination if the costs of the
7969+19 generating unit supplying the renewable energy credits
7970+20 subsequently begin to be recovered through rates regulated
7971+21 by this State or any other state or states; and each
7972+22 contract shall further provide that, in that event, the
7973+23 supplier of the credits must return 110% of all payments
7974+24 received under the contract. Amounts returned under the
7975+25 requirements of this subparagraph (J) shall be retained by
7976+26 the utility and all of these amounts shall be used for the
7977+
7978+
7979+
7980+
7981+
7982+ SB1699 Enrolled - 222 - LRB103 27684 AMQ 54061 b
7983+
7984+
7985+SB1699 Enrolled- 223 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 223 - LRB103 27684 AMQ 54061 b
7986+ SB1699 Enrolled - 223 - LRB103 27684 AMQ 54061 b
7987+1 procurement of additional renewable energy credits from
7988+2 new wind or new photovoltaic resources as defined in this
7989+3 subsection (c). The long-term plan shall provide that
7990+4 these renewable energy credits shall be procured in the
7991+5 next procurement event.
7992+6 Notwithstanding the limitations of this subparagraph
7993+7 (J), renewable energy credits sourced from generating
7994+8 units that are constructed, purchased, owned, or leased by
7995+9 an electric utility as part of an approved project,
7996+10 program, or pilot under Section 1-56 of this Act shall be
7997+11 eligible to be counted toward the renewable energy
7998+12 requirements of this subsection (c), regardless of how the
7999+13 costs of these units are recovered. As long as a
8000+14 generating unit or an identifiable portion of a generating
8001+15 unit has not had and does not have its costs recovered
8002+16 through rates regulated by this State or any other state,
8003+17 HVDC renewable energy credits associated with that
8004+18 generating unit or identifiable portion thereof shall be
8005+19 eligible to be counted toward the renewable energy
8006+20 requirements of this subsection (c).
8007+21 (K) The long-term renewable resources procurement plan
8008+22 developed by the Agency in accordance with subparagraph
8009+23 (A) of this paragraph (1) shall include an Adjustable
8010+24 Block program for the procurement of renewable energy
8011+25 credits from new photovoltaic projects that are
8012+26 distributed renewable energy generation devices or new
8013+
8014+
8015+
8016+
8017+
8018+ SB1699 Enrolled - 223 - LRB103 27684 AMQ 54061 b
8019+
8020+
8021+SB1699 Enrolled- 224 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 224 - LRB103 27684 AMQ 54061 b
8022+ SB1699 Enrolled - 224 - LRB103 27684 AMQ 54061 b
8023+1 photovoltaic community renewable generation projects. The
8024+2 Adjustable Block program shall be generally designed to
8025+3 provide for the steady, predictable, and sustainable
8026+4 growth of new solar photovoltaic development in Illinois.
8027+5 To this end, the Adjustable Block program shall provide a
8028+6 transparent annual schedule of prices and quantities to
8029+7 enable the photovoltaic market to scale up and for
8030+8 renewable energy credit prices to adjust at a predictable
8031+9 rate over time. The prices set by the Adjustable Block
8032+10 program can be reflected as a set value or as the product
8033+11 of a formula.
8034+12 The Adjustable Block program shall include for each
8035+13 category of eligible projects for each delivery year: a
8036+14 single block of nameplate capacity, a price for renewable
8037+15 energy credits within that block, and the terms and
8038+16 conditions for securing a spot on a waitlist once the
8039+17 block is fully committed or reserved. Except as outlined
8040+18 below, the waitlist of projects in a given year will carry
8041+19 over to apply to the subsequent year when another block is
8042+20 opened. Only projects energized on or after June 1, 2017
8043+21 shall be eligible for the Adjustable Block program. For
8044+22 each category for each delivery year the Agency shall
8045+23 determine the amount of generation capacity in each block,
8046+24 and the purchase price for each block, provided that the
8047+25 purchase price provided and the total amount of generation
8048+26 in all blocks for all categories shall be sufficient to
8049+
8050+
8051+
8052+
8053+
8054+ SB1699 Enrolled - 224 - LRB103 27684 AMQ 54061 b
8055+
8056+
8057+SB1699 Enrolled- 225 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 225 - LRB103 27684 AMQ 54061 b
8058+ SB1699 Enrolled - 225 - LRB103 27684 AMQ 54061 b
8059+1 meet the goals in this subsection (c). The Agency shall
8060+2 strive to issue a single block sized to provide for
8061+3 stability and market growth. The Agency shall establish
8062+4 program eligibility requirements that ensure that projects
8063+5 that enter the program are sufficiently mature to indicate
8064+6 a demonstrable path to completion. The Agency may
8065+7 periodically review its prior decisions establishing the
8066+8 amount of generation capacity in each block, and the
8067+9 purchase price for each block, and may propose, on an
8068+10 expedited basis, changes to these previously set values,
8069+11 including but not limited to redistributing these amounts
8070+12 and the available funds as necessary and appropriate,
8071+13 subject to Commission approval as part of the periodic
8072+14 plan revision process described in Section 16-111.5 of the
8073+15 Public Utilities Act. The Agency may define different
8074+16 block sizes, purchase prices, or other distinct terms and
8075+17 conditions for projects located in different utility
8076+18 service territories if the Agency deems it necessary to
8077+19 meet the goals in this subsection (c).
8078+20 The Adjustable Block program shall include the
8079+21 following categories in at least the following amounts:
8080+22 (i) At least 20% from distributed renewable energy
8081+23 generation devices with a nameplate capacity of no
8082+24 more than 25 kilowatts.
8083+25 (ii) At least 20% from distributed renewable
8084+26 energy generation devices with a nameplate capacity of
8085+
8086+
8087+
8088+
8089+
8090+ SB1699 Enrolled - 225 - LRB103 27684 AMQ 54061 b
8091+
8092+
8093+SB1699 Enrolled- 226 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 226 - LRB103 27684 AMQ 54061 b
8094+ SB1699 Enrolled - 226 - LRB103 27684 AMQ 54061 b
8095+1 more than 25 kilowatts and no more than 5,000
8096+2 kilowatts. The Agency may create sub-categories within
8097+3 this category to account for the differences between
8098+4 projects for small commercial customers, large
8099+5 commercial customers, and public or non-profit
8100+6 customers.
8101+7 (iii) At least 30% from photovoltaic community
8102+8 renewable generation projects. Capacity for this
8103+9 category for the first 2 delivery years after the
8104+10 effective date of this amendatory Act of the 102nd
8105+11 General Assembly shall be allocated to waitlist
8106+12 projects as provided in paragraph (3) of item (iv) of
8107+13 subparagraph (G). Starting in the third delivery year
8108+14 after the effective date of this amendatory Act of the
8109+15 102nd General Assembly or earlier if the Agency
8110+16 determines there is additional capacity needed for to
8111+17 meet previous delivery year requirements, the
8112+18 following shall apply:
8113+19 (1) the Agency shall select projects on a
8114+20 first-come, first-serve basis, however the Agency
8115+21 may suggest additional methods to prioritize
8116+22 projects that are submitted at the same time;
8117+23 (2) projects shall have subscriptions of 25 kW
8118+24 or less for at least 50% of the facility's
8119+25 nameplate capacity and the Agency shall price the
8120+26 renewable energy credits with that as a factor;
8121+
8122+
8123+
8124+
8125+
8126+ SB1699 Enrolled - 226 - LRB103 27684 AMQ 54061 b
8127+
8128+
8129+SB1699 Enrolled- 227 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 227 - LRB103 27684 AMQ 54061 b
8130+ SB1699 Enrolled - 227 - LRB103 27684 AMQ 54061 b
8131+1 (3) projects shall not be colocated with one
8132+2 or more other community renewable generation
8133+3 projects, as defined in the Agency's first revised
8134+4 long-term renewable resources procurement plan
8135+5 approved by the Commission on February 18, 2020,
8136+6 such that the aggregate nameplate capacity exceeds
8137+7 5,000 kilowatts; and
8138+8 (4) projects greater than 2 MW may not apply
8139+9 until after the approval of the Agency's revised
8140+10 Long-Term Renewable Resources Procurement Plan
8141+11 after the effective date of this amendatory Act of
8142+12 the 102nd General Assembly.
8143+13 (iv) At least 15% from distributed renewable
8144+14 generation devices or photovoltaic community renewable
8145+15 generation projects installed on at public school land
8146+16 schools. The Agency may create subcategories within
8147+17 this category to account for the differences between
8148+18 project size or location. Projects located within
8149+19 environmental justice communities or within
8150+20 Organizational Units that fall within Tier 1 or Tier 2
8151+21 shall be given priority. Each of the Agency's periodic
8152+22 updates to its long-term renewable resources
8153+23 procurement plan to incorporate the procurement
8154+24 described in this subparagraph (iv) shall also include
8155+25 the proposed quantities or blocks, pricing, and
8156+26 contract terms applicable to the procurement as
8157+
8158+
8159+
8160+
8161+
8162+ SB1699 Enrolled - 227 - LRB103 27684 AMQ 54061 b
8163+
8164+
8165+SB1699 Enrolled- 228 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 228 - LRB103 27684 AMQ 54061 b
8166+ SB1699 Enrolled - 228 - LRB103 27684 AMQ 54061 b
8167+1 indicated herein. In each such update and procurement,
8168+2 the Agency shall set the renewable energy credit price
8169+3 and establish payment terms for the renewable energy
8170+4 credits procured pursuant to this subparagraph (iv)
8171+5 that make it feasible and affordable for public
8172+6 schools to install photovoltaic distributed renewable
8173+7 energy devices on their premises, including, but not
8174+8 limited to, those public schools subject to the
8175+9 prioritization provisions of this subparagraph. For
8176+10 the purposes of this item (iv):
8177+11 "Environmental Justice Community" shall have the
8178+12 same meaning set forth in the Agency's long-term
8179+13 renewable resources procurement plan;
8180+14 "Organization Unit", "Tier 1" and "Tier 2" shall
8181+15 have the meanings set for in Section 18-8.15 of the
8182+16 School Code;
8183+17 "Public schools" shall have the meaning set forth
8184+18 in Section 1-3 of the School Code and includes public
8185+19 institutions of higher education, as defined in the
8186+20 Board of Higher Education Act.
8187+21 (v) At least 5% from community-driven community
8188+22 solar projects intended to provide more direct and
8189+23 tangible connection and benefits to the communities
8190+24 which they serve or in which they operate and,
8191+25 additionally, to increase the variety of community
8192+26 solar locations, models, and options in Illinois. As
8193+
8194+
8195+
8196+
8197+
8198+ SB1699 Enrolled - 228 - LRB103 27684 AMQ 54061 b
8199+
8200+
8201+SB1699 Enrolled- 229 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 229 - LRB103 27684 AMQ 54061 b
8202+ SB1699 Enrolled - 229 - LRB103 27684 AMQ 54061 b
8203+1 part of its long-term renewable resources procurement
8204+2 plan, the Agency shall develop selection criteria for
8205+3 projects participating in this category. Nothing in
8206+4 this Section shall preclude the Agency from creating a
8207+5 selection process that maximizes community ownership
8208+6 and community benefits in selecting projects to
8209+7 receive renewable energy credits. Selection criteria
8210+8 shall include:
8211+9 (1) community ownership or community
8212+10 wealth-building;
8213+11 (2) additional direct and indirect community
8214+12 benefit, beyond project participation as a
8215+13 subscriber, including, but not limited to,
8216+14 economic, environmental, social, cultural, and
8217+15 physical benefits;
8218+16 (3) meaningful involvement in project
8219+17 organization and development by community members
8220+18 or nonprofit organizations or public entities
8221+19 located in or serving the community;
8222+20 (4) engagement in project operations and
8223+21 management by nonprofit organizations, public
8224+22 entities, or community members; and
8225+23 (5) whether a project is developed in response
8226+24 to a site-specific RFP developed by community
8227+25 members or a nonprofit organization or public
8228+26 entity located in or serving the community.
8229+
8230+
8231+
8232+
8233+
8234+ SB1699 Enrolled - 229 - LRB103 27684 AMQ 54061 b
8235+
8236+
8237+SB1699 Enrolled- 230 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 230 - LRB103 27684 AMQ 54061 b
8238+ SB1699 Enrolled - 230 - LRB103 27684 AMQ 54061 b
8239+1 Selection criteria may also prioritize projects
8240+2 that:
8241+3 (1) are developed in collaboration with or to
8242+4 provide complementary opportunities for the Clean
8243+5 Jobs Workforce Network Program, the Illinois
8244+6 Climate Works Preapprenticeship Program, the
8245+7 Returning Residents Clean Jobs Training Program,
8246+8 the Clean Energy Contractor Incubator Program, or
8247+9 the Clean Energy Primes Contractor Accelerator
8248+10 Program;
8249+11 (2) increase the diversity of locations of
8250+12 community solar projects in Illinois, including by
8251+13 locating in urban areas and population centers;
8252+14 (3) are located in Equity Investment Eligible
8253+15 Communities;
8254+16 (4) are not greenfield projects;
8255+17 (5) serve only local subscribers;
8256+18 (6) have a nameplate capacity that does not
8257+19 exceed 500 kW;
8258+20 (7) are developed by an equity eligible
8259+21 contractor; or
8260+22 (8) otherwise meaningfully advance the goals
8261+23 of providing more direct and tangible connection
8262+24 and benefits to the communities which they serve
8263+25 or in which they operate and increasing the
8264+26 variety of community solar locations, models, and
8265+
8266+
8267+
8268+
8269+
8270+ SB1699 Enrolled - 230 - LRB103 27684 AMQ 54061 b
8271+
8272+
8273+SB1699 Enrolled- 231 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 231 - LRB103 27684 AMQ 54061 b
8274+ SB1699 Enrolled - 231 - LRB103 27684 AMQ 54061 b
8275+1 options in Illinois.
8276+2 For the purposes of this item (v):
8277+3 "Community" means a social unit in which people
8278+4 come together regularly to effect change; a social
8279+5 unit in which participants are marked by a cooperative
8280+6 spirit, a common purpose, or shared interests or
8281+7 characteristics; or a space understood by its
8282+8 residents to be delineated through geographic
8283+9 boundaries or landmarks.
8284+10 "Community benefit" means a range of services and
8285+11 activities that provide affirmative, economic,
8286+12 environmental, social, cultural, or physical value to
8287+13 a community; or a mechanism that enables economic
8288+14 development, high-quality employment, and education
8289+15 opportunities for local workers and residents, or
8290+16 formal monitoring and oversight structures such that
8291+17 community members may ensure that those services and
8292+18 activities respond to local knowledge and needs.
8293+19 "Community ownership" means an arrangement in
8294+20 which an electric generating facility is, or over time
8295+21 will be, in significant part, owned collectively by
8296+22 members of the community to which an electric
8297+23 generating facility provides benefits; members of that
8298+24 community participate in decisions regarding the
8299+25 governance, operation, maintenance, and upgrades of
8300+26 and to that facility; and members of that community
8301+
8302+
8303+
8304+
8305+
8306+ SB1699 Enrolled - 231 - LRB103 27684 AMQ 54061 b
8307+
8308+
8309+SB1699 Enrolled- 232 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 232 - LRB103 27684 AMQ 54061 b
8310+ SB1699 Enrolled - 232 - LRB103 27684 AMQ 54061 b
8311+1 benefit from regular use of that facility.
8312+2 Terms and guidance within these criteria that are
8313+3 not defined in this item (v) shall be defined by the
8314+4 Agency, with stakeholder input, during the development
8315+5 of the Agency's long-term renewable resources
8316+6 procurement plan. The Agency shall develop regular
8317+7 opportunities for projects to submit applications for
8318+8 projects under this category, and develop selection
8319+9 criteria that gives preference to projects that better
8320+10 meet individual criteria as well as projects that
8321+11 address a higher number of criteria.
8322+12 (vi) At least 10% from distributed renewable
8323+13 energy generation devices, which includes distributed
8324+14 renewable energy devices with a nameplate capacity
8325+15 under 5,000 kilowatts or photovoltaic community
8326+16 renewable generation projects, from applicants that
8327+17 are equity eligible contractors. The Agency may create
8328+18 subcategories within this category to account for the
8329+19 differences between project size and type. The Agency
8330+20 shall propose to increase the percentage in this item
8331+21 (vi) over time to 40% based on factors, including, but
8332+22 not limited to, the number of equity eligible
8333+23 contractors and capacity used in this item (vi) in
8334+24 previous delivery years.
8335+25 The Agency shall propose a payment structure for
8336+26 contracts executed pursuant to this paragraph under
8337+
8338+
8339+
8340+
8341+
8342+ SB1699 Enrolled - 232 - LRB103 27684 AMQ 54061 b
8343+
8344+
8345+SB1699 Enrolled- 233 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 233 - LRB103 27684 AMQ 54061 b
8346+ SB1699 Enrolled - 233 - LRB103 27684 AMQ 54061 b
8347+1 which, upon a demonstration of qualification or need,
8348+2 applicant firms are advanced capital disbursed after
8349+3 contract execution but before the contracted project's
8350+4 energization. The amount or percentage of capital
8351+5 advanced prior to project energization shall be
8352+6 sufficient to both cover any increase in development
8353+7 costs resulting from prevailing wage requirements or
8354+8 project-labor agreements, and designed to overcome
8355+9 barriers in access to capital faced by equity eligible
8356+10 contractors. The amount or percentage of advanced
8357+11 capital may vary by subcategory within this category
8358+12 and by an applicant's demonstration of need, with such
8359+13 levels to be established through the Long-Term
8360+14 Renewable Resources Procurement Plan authorized under
8361+15 subparagraph (A) of paragraph (1) of subsection (c) of
8362+16 this Section.
8363+17 Contracts developed featuring capital advanced
8364+18 prior to a project's energization shall feature
8365+19 provisions to ensure both the successful development
8366+20 of applicant projects and the delivery of the
8367+21 renewable energy credits for the full term of the
8368+22 contract, including ongoing collateral requirements
8369+23 and other provisions deemed necessary by the Agency,
8370+24 and may include energization timelines longer than for
8371+25 comparable project types. The percentage or amount of
8372+26 capital advanced prior to project energization shall
8373+
8374+
8375+
8376+
8377+
8378+ SB1699 Enrolled - 233 - LRB103 27684 AMQ 54061 b
8379+
8380+
8381+SB1699 Enrolled- 234 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 234 - LRB103 27684 AMQ 54061 b
8382+ SB1699 Enrolled - 234 - LRB103 27684 AMQ 54061 b
8383+1 not operate to increase the overall contract value,
8384+2 however contracts executed under this subparagraph may
8385+3 feature renewable energy credit prices higher than
8386+4 those offered to similar projects participating in
8387+5 other categories. Capital advanced prior to
8388+6 energization shall serve to reduce the ratable
8389+7 payments made after energization under items (ii) and
8390+8 (iii) of subparagraph (L) or payments made for each
8391+9 renewable energy credit delivery under item (iv) of
8392+10 subparagraph (L).
8393+11 (vii) The remaining capacity shall be allocated by
8394+12 the Agency in order to respond to market demand. The
8395+13 Agency shall allocate any discretionary capacity prior
8396+14 to the beginning of each delivery year.
8397+15 To the extent there is uncontracted capacity from any
8398+16 block in any of categories (i) through (vi) at the end of a
8399+17 delivery year, the Agency shall redistribute that capacity
8400+18 to one or more other categories giving priority to
8401+19 categories with projects on a waitlist. The redistributed
8402+20 capacity shall be added to the annual capacity in the
8403+21 subsequent delivery year, and the price for renewable
8404+22 energy credits shall be the price for the new delivery
8405+23 year. Redistributed capacity shall not be considered
8406+24 redistributed when determining whether the goals in this
8407+25 subsection (K) have been met.
8408+26 Notwithstanding anything to the contrary, as the
8409+
8410+
8411+
8412+
8413+
8414+ SB1699 Enrolled - 234 - LRB103 27684 AMQ 54061 b
8415+
8416+
8417+SB1699 Enrolled- 235 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 235 - LRB103 27684 AMQ 54061 b
8418+ SB1699 Enrolled - 235 - LRB103 27684 AMQ 54061 b
8419+1 Agency increases the capacity in item (vi) to 40% over
8420+2 time, the Agency may reduce the capacity of items (i)
8421+3 through (v) proportionate to the capacity of the
8422+4 categories of projects in item (vi), to achieve a balance
8423+5 of project types.
8424+6 The Adjustable Block program shall be designed to
8425+7 ensure that renewable energy credits are procured from
8426+8 projects in diverse locations and are not concentrated in
8427+9 a few regional areas.
8428+10 (L) Notwithstanding provisions for advancing capital
8429+11 prior to project energization found in item (vi) of
8430+12 subparagraph (K), the procurement of photovoltaic
8431+13 renewable energy credits under items (i) through (vi) of
8432+14 subparagraph (K) of this paragraph (1) shall otherwise be
8433+15 subject to the following contract and payment terms:
8434+16 (i) (Blank).
8435+17 (ii) For those renewable energy credits that
8436+18 qualify and are procured under item (i) of
8437+19 subparagraph (K) of this paragraph (1), and any
8438+20 similar category projects that are procured under item
8439+21 (vi) of subparagraph (K) of this paragraph (1) that
8440+22 qualify and are procured under item (vi), the contract
8441+23 length shall be 15 years. The renewable energy credit
8442+24 delivery contract value shall be paid in full, based
8443+25 on the estimated generation during the first 15 years
8444+26 of operation, by the contracting utilities at the time
8445+
8446+
8447+
8448+
8449+
8450+ SB1699 Enrolled - 235 - LRB103 27684 AMQ 54061 b
8451+
8452+
8453+SB1699 Enrolled- 236 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 236 - LRB103 27684 AMQ 54061 b
8454+ SB1699 Enrolled - 236 - LRB103 27684 AMQ 54061 b
8455+1 that the facility producing the renewable energy
8456+2 credits is interconnected at the distribution system
8457+3 level of the utility and verified as energized and
8458+4 compliant by the Program Administrator. The electric
8459+5 utility shall receive and retire all renewable energy
8460+6 credits generated by the project for the first 15
8461+7 years of operation. Renewable energy credits generated
8462+8 by the project thereafter shall not be transferred
8463+9 under the renewable energy credit delivery contract
8464+10 with the counterparty electric utility.
8465+11 (iii) For those renewable energy credits that
8466+12 qualify and are procured under item (ii) and (v) of
8467+13 subparagraph (K) of this paragraph (1) and any like
8468+14 projects similar category that qualify and are
8469+15 procured under item (vi), the contract length shall be
8470+16 15 years. 15% of the renewable energy credit delivery
8471+17 contract value, based on the estimated generation
8472+18 during the first 15 years of operation, shall be paid
8473+19 by the contracting utilities at the time that the
8474+20 facility producing the renewable energy credits is
8475+21 interconnected at the distribution system level of the
8476+22 utility and verified as energized and compliant by the
8477+23 Program Administrator. The remaining portion shall be
8478+24 paid ratably over the subsequent 6-year period. The
8479+25 electric utility shall receive and retire all
8480+26 renewable energy credits generated by the project for
8481+
8482+
8483+
8484+
8485+
8486+ SB1699 Enrolled - 236 - LRB103 27684 AMQ 54061 b
8487+
8488+
8489+SB1699 Enrolled- 237 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 237 - LRB103 27684 AMQ 54061 b
8490+ SB1699 Enrolled - 237 - LRB103 27684 AMQ 54061 b
8491+1 the first 15 years of operation. Renewable energy
8492+2 credits generated by the project thereafter shall not
8493+3 be transferred under the renewable energy credit
8494+4 delivery contract with the counterparty electric
8495+5 utility.
8496+6 (iv) For those renewable energy credits that
8497+7 qualify and are procured under items (iii) and (iv) of
8498+8 subparagraph (K) of this paragraph (1), and any like
8499+9 projects that qualify and are procured under item
8500+10 (vi), the renewable energy credit delivery contract
8501+11 length shall be 20 years and shall be paid over the
8502+12 delivery term, not to exceed during each delivery year
8503+13 the contract price multiplied by the estimated annual
8504+14 renewable energy credit generation amount. If
8505+15 generation of renewable energy credits during a
8506+16 delivery year exceeds the estimated annual generation
8507+17 amount, the excess renewable energy credits shall be
8508+18 carried forward to future delivery years and shall not
8509+19 expire during the delivery term. If generation of
8510+20 renewable energy credits during a delivery year,
8511+21 including carried forward excess renewable energy
8512+22 credits, if any, is less than the estimated annual
8513+23 generation amount, payments during such delivery year
8514+24 will not exceed the quantity generated plus the
8515+25 quantity carried forward multiplied by the contract
8516+26 price. The electric utility shall receive all
8517+
8518+
8519+
8520+
8521+
8522+ SB1699 Enrolled - 237 - LRB103 27684 AMQ 54061 b
8523+
8524+
8525+SB1699 Enrolled- 238 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 238 - LRB103 27684 AMQ 54061 b
8526+ SB1699 Enrolled - 238 - LRB103 27684 AMQ 54061 b
8527+1 renewable energy credits generated by the project
8528+2 during the first 20 years of operation and retire all
8529+3 renewable energy credits paid for under this item (iv)
8530+4 and return at the end of the delivery term all
8531+5 renewable energy credits that were not paid for.
8532+6 Renewable energy credits generated by the project
8533+7 thereafter shall not be transferred under the
8534+8 renewable energy credit delivery contract with the
8535+9 counterparty electric utility. Notwithstanding the
8536+10 preceding, for those projects participating under item
8537+11 (iii) of subparagraph (K), the contract price for a
8538+12 delivery year shall be based on subscription levels as
8539+13 measured on the higher of the first business day of the
8540+14 delivery year or the first business day 6 months after
8541+15 the first business day of the delivery year.
8542+16 Subscription of 90% of nameplate capacity or greater
8543+17 shall be deemed to be fully subscribed for the
8544+18 purposes of this item (iv). For projects receiving a
8545+19 20-year delivery contract, REC prices shall be
8546+20 adjusted downward for consistency with the incentive
8547+21 levels previously determined to be necessary to
8548+22 support projects under 15-year delivery contracts,
8549+23 taking into consideration any additional new
8550+24 requirements placed on the projects, including, but
8551+25 not limited to, labor standards.
8552+26 (v) Each contract shall include provisions to
8553+
8554+
8555+
8556+
8557+
8558+ SB1699 Enrolled - 238 - LRB103 27684 AMQ 54061 b
8559+
8560+
8561+SB1699 Enrolled- 239 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 239 - LRB103 27684 AMQ 54061 b
8562+ SB1699 Enrolled - 239 - LRB103 27684 AMQ 54061 b
8563+1 ensure the delivery of the estimated quantity of
8564+2 renewable energy credits and ongoing collateral
8565+3 requirements and other provisions deemed appropriate
8566+4 by the Agency.
8567+5 (vi) The utility shall be the counterparty to the
8568+6 contracts executed under this subparagraph (L) that
8569+7 are approved by the Commission under the process
8570+8 described in Section 16-111.5 of the Public Utilities
8571+9 Act. No contract shall be executed for an amount that
8572+10 is less than one renewable energy credit per year.
8573+11 (vii) If, at any time, approved applications for
8574+12 the Adjustable Block program exceed funds collected by
8575+13 the electric utility or would cause the Agency to
8576+14 exceed the limitation described in subparagraph (E) of
8577+15 this paragraph (1) on the amount of renewable energy
8578+16 resources that may be procured, then the Agency may
8579+17 consider future uncommitted funds to be reserved for
8580+18 these contracts on a first-come, first-served basis.
8581+19 (viii) Nothing in this Section shall require the
8582+20 utility to advance any payment or pay any amounts that
8583+21 exceed the actual amount of revenues anticipated to be
8584+22 collected by the utility under paragraph (6) of this
8585+23 subsection (c) and subsection (k) of Section 16-108 of
8586+24 the Public Utilities Act inclusive of eligible funds
8587+25 collected in prior years and alternative compliance
8588+26 payments for use by the utility, and contracts
8589+
8590+
8591+
8592+
8593+
8594+ SB1699 Enrolled - 239 - LRB103 27684 AMQ 54061 b
8595+
8596+
8597+SB1699 Enrolled- 240 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 240 - LRB103 27684 AMQ 54061 b
8598+ SB1699 Enrolled - 240 - LRB103 27684 AMQ 54061 b
8599+1 executed under this Section shall expressly
8600+2 incorporate this limitation.
8601+3 (ix) Notwithstanding other requirements of this
8602+4 subparagraph (L), no modification shall be required to
8603+5 Adjustable Block program contracts if they were
8604+6 already executed prior to the establishment, approval,
8605+7 and implementation of new contract forms as a result
8606+8 of this amendatory Act of the 102nd General Assembly.
8607+9 (x) Contracts may be assignable, but only to
8608+10 entities first deemed by the Agency to have met
8609+11 program terms and requirements applicable to direct
8610+12 program participation. In developing contracts for the
8611+13 delivery of renewable energy credits, the Agency shall
8612+14 be permitted to establish fees applicable to each
8613+15 contract assignment.
8614+16 (M) The Agency shall be authorized to retain one or
8615+17 more experts or expert consulting firms to develop,
8616+18 administer, implement, operate, and evaluate the
8617+19 Adjustable Block program described in subparagraph (K) of
8618+20 this paragraph (1), and the Agency shall retain the
8619+21 consultant or consultants in the same manner, to the
8620+22 extent practicable, as the Agency retains others to
8621+23 administer provisions of this Act, including, but not
8622+24 limited to, the procurement administrator. The selection
8623+25 of experts and expert consulting firms and the procurement
8624+26 process described in this subparagraph (M) are exempt from
8625+
8626+
8627+
8628+
8629+
8630+ SB1699 Enrolled - 240 - LRB103 27684 AMQ 54061 b
8631+
8632+
8633+SB1699 Enrolled- 241 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 241 - LRB103 27684 AMQ 54061 b
8634+ SB1699 Enrolled - 241 - LRB103 27684 AMQ 54061 b
8635+1 the requirements of Section 20-10 of the Illinois
8636+2 Procurement Code, under Section 20-10 of that Code. The
8637+3 Agency shall strive to minimize administrative expenses in
8638+4 the implementation of the Adjustable Block program.
8639+5 The Program Administrator may charge application fees
8640+6 to participating firms to cover the cost of program
8641+7 administration. Any application fee amounts shall
8642+8 initially be determined through the long-term renewable
8643+9 resources procurement plan, and modifications to any
8644+10 application fee that deviate more than 25% from the
8645+11 Commission's approved value must be approved by the
8646+12 Commission as a long-term plan revision under Section
8647+13 16-111.5 of the Public Utilities Act. The Agency shall
8648+14 consider stakeholder feedback when making adjustments to
8649+15 application fees and shall notify stakeholders in advance
8650+16 of any planned changes.
8651+17 In addition to covering the costs of program
8652+18 administration, the Agency, in conjunction with its
8653+19 Program Administrator, may also use the proceeds of such
8654+20 fees charged to participating firms to support public
8655+21 education and ongoing regional and national coordination
8656+22 with nonprofit organizations, public bodies, and others
8657+23 engaged in the implementation of renewable energy
8658+24 incentive programs or similar initiatives. This work may
8659+25 include developing papers and reports, hosting regional
8660+26 and national conferences, and other work deemed necessary
8661+
8662+
8663+
8664+
8665+
8666+ SB1699 Enrolled - 241 - LRB103 27684 AMQ 54061 b
8667+
8668+
8669+SB1699 Enrolled- 242 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 242 - LRB103 27684 AMQ 54061 b
8670+ SB1699 Enrolled - 242 - LRB103 27684 AMQ 54061 b
8671+1 by the Agency to position the State of Illinois as a
8672+2 national leader in renewable energy incentive program
8673+3 development and administration.
8674+4 The Agency and its consultant or consultants shall
8675+5 monitor block activity, share program activity with
8676+6 stakeholders and conduct quarterly meetings to discuss
8677+7 program activity and market conditions. If necessary, the
8678+8 Agency may make prospective administrative adjustments to
8679+9 the Adjustable Block program design, such as making
8680+10 adjustments to purchase prices as necessary to achieve the
8681+11 goals of this subsection (c). Program modifications to any
8682+12 block price that do not deviate from the Commission's
8683+13 approved value by more than 10% shall take effect
8684+14 immediately and are not subject to Commission review and
8685+15 approval. Program modifications to any block price that
8686+16 deviate more than 10% from the Commission's approved value
8687+17 must be approved by the Commission as a long-term plan
8688+18 amendment under Section 16-111.5 of the Public Utilities
8689+19 Act. The Agency shall consider stakeholder feedback when
8690+20 making adjustments to the Adjustable Block design and
8691+21 shall notify stakeholders in advance of any planned
8692+22 changes.
8693+23 The Agency and its program administrators for both the
8694+24 Adjustable Block program and the Illinois Solar for All
8695+25 Program, consistent with the requirements of this
8696+26 subsection (c) and subsection (b) of Section 1-56 of this
8697+
8698+
8699+
8700+
8701+
8702+ SB1699 Enrolled - 242 - LRB103 27684 AMQ 54061 b
8703+
8704+
8705+SB1699 Enrolled- 243 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 243 - LRB103 27684 AMQ 54061 b
8706+ SB1699 Enrolled - 243 - LRB103 27684 AMQ 54061 b
8707+1 Act, shall propose the Adjustable Block program terms,
8708+2 conditions, and requirements, including the prices to be
8709+3 paid for renewable energy credits, where applicable, and
8710+4 requirements applicable to participating entities and
8711+5 project applications, through the development, review, and
8712+6 approval of the Agency's long-term renewable resources
8713+7 procurement plan described in this subsection (c) and
8714+8 paragraph (5) of subsection (b) of Section 16-111.5 of the
8715+9 Public Utilities Act. Terms, conditions, and requirements
8716+10 for program participation shall include the following:
8717+11 (i) The Agency shall establish a registration
8718+12 process for entities seeking to qualify for
8719+13 program-administered incentive funding and establish
8720+14 baseline qualifications for vendor approval. The
8721+15 Agency must maintain a list of approved entities on
8722+16 each program's website, and may revoke a vendor's
8723+17 ability to receive program-administered incentive
8724+18 funding status upon a determination that the vendor
8725+19 failed to comply with contract terms, the law, or
8726+20 other program requirements.
8727+21 (ii) The Agency shall establish program
8728+22 requirements and minimum contract terms to ensure
8729+23 projects are properly installed and produce their
8730+24 expected amounts of energy. Program requirements may
8731+25 include on-site inspections and photo documentation of
8732+26 projects under construction. The Agency may require
8733+
8734+
8735+
8736+
8737+
8738+ SB1699 Enrolled - 243 - LRB103 27684 AMQ 54061 b
8739+
8740+
8741+SB1699 Enrolled- 244 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 244 - LRB103 27684 AMQ 54061 b
8742+ SB1699 Enrolled - 244 - LRB103 27684 AMQ 54061 b
8743+1 repairs, alterations, or additions to remedy any
8744+2 material deficiencies discovered. Vendors who have a
8745+3 disproportionately high number of deficient systems
8746+4 may lose their eligibility to continue to receive
8747+5 State-administered incentive funding through Agency
8748+6 programs and procurements.
8749+7 (iii) To discourage deceptive marketing or other
8750+8 bad faith business practices, the Agency may require
8751+9 direct program participants, including agents
8752+10 operating on their behalf, to provide standardized
8753+11 disclosures to a customer prior to that customer's
8754+12 execution of a contract for the development of a
8755+13 distributed generation system or a subscription to a
8756+14 community solar project.
8757+15 (iv) The Agency shall establish one or multiple
8758+16 Consumer Complaints Centers to accept complaints
8759+17 regarding businesses that participate in, or otherwise
8760+18 benefit from, State-administered incentive funding
8761+19 through Agency-administered programs. The Agency shall
8762+20 maintain a public database of complaints with any
8763+21 confidential or particularly sensitive information
8764+22 redacted from public entries.
8765+23 (v) Through a filing in the proceeding for the
8766+24 approval of its long-term renewable energy resources
8767+25 procurement plan, the Agency shall provide an annual
8768+26 written report to the Illinois Commerce Commission
8769+
8770+
8771+
8772+
8773+
8774+ SB1699 Enrolled - 244 - LRB103 27684 AMQ 54061 b
8775+
8776+
8777+SB1699 Enrolled- 245 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 245 - LRB103 27684 AMQ 54061 b
8778+ SB1699 Enrolled - 245 - LRB103 27684 AMQ 54061 b
8779+1 documenting the frequency and nature of complaints and
8780+2 any enforcement actions taken in response to those
8781+3 complaints.
8782+4 (vi) The Agency shall schedule regular meetings
8783+5 with representatives of the Office of the Attorney
8784+6 General, the Illinois Commerce Commission, consumer
8785+7 protection groups, and other interested stakeholders
8786+8 to share relevant information about consumer
8787+9 protection, project compliance, and complaints
8788+10 received.
8789+11 (vii) To the extent that complaints received
8790+12 implicate the jurisdiction of the Office of the
8791+13 Attorney General, the Illinois Commerce Commission, or
8792+14 local, State, or federal law enforcement, the Agency
8793+15 shall also refer complaints to those entities as
8794+16 appropriate.
8795+17 (N) The Agency shall establish the terms, conditions,
8796+18 and program requirements for photovoltaic community
8797+19 renewable generation projects with a goal to expand access
8798+20 to a broader group of energy consumers, to ensure robust
8799+21 participation opportunities for residential and small
8800+22 commercial customers and those who cannot install
8801+23 renewable energy on their own properties. Subject to
8802+24 reasonable limitations, any plan approved by the
8803+25 Commission shall allow subscriptions to community
8804+26 renewable generation projects to be portable and
8805+
8806+
8807+
8808+
8809+
8810+ SB1699 Enrolled - 245 - LRB103 27684 AMQ 54061 b
8811+
8812+
8813+SB1699 Enrolled- 246 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 246 - LRB103 27684 AMQ 54061 b
8814+ SB1699 Enrolled - 246 - LRB103 27684 AMQ 54061 b
8815+1 transferable. For purposes of this subparagraph (N),
8816+2 "portable" means that subscriptions may be retained by the
8817+3 subscriber even if the subscriber relocates or changes its
8818+4 address within the same utility service territory; and
8819+5 "transferable" means that a subscriber may assign or sell
8820+6 subscriptions to another person within the same utility
8821+7 service territory.
8822+8 Through the development of its long-term renewable
8823+9 resources procurement plan, the Agency may consider
8824+10 whether community renewable generation projects utilizing
8825+11 technologies other than photovoltaics should be supported
8826+12 through State-administered incentive funding, and may
8827+13 issue requests for information to gauge market demand.
8828+14 Electric utilities shall provide a monetary credit to
8829+15 a subscriber's subsequent bill for service for the
8830+16 proportional output of a community renewable generation
8831+17 project attributable to that subscriber as specified in
8832+18 Section 16-107.5 of the Public Utilities Act.
8833+19 The Agency shall purchase renewable energy credits
8834+20 from subscribed shares of photovoltaic community renewable
8835+21 generation projects through the Adjustable Block program
8836+22 described in subparagraph (K) of this paragraph (1) or
8837+23 through the Illinois Solar for All Program described in
8838+24 Section 1-56 of this Act. The electric utility shall
8839+25 purchase any unsubscribed energy from community renewable
8840+26 generation projects that are Qualifying Facilities ("QF")
8841+
8842+
8843+
8844+
8845+
8846+ SB1699 Enrolled - 246 - LRB103 27684 AMQ 54061 b
8847+
8848+
8849+SB1699 Enrolled- 247 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 247 - LRB103 27684 AMQ 54061 b
8850+ SB1699 Enrolled - 247 - LRB103 27684 AMQ 54061 b
8851+1 under the electric utility's tariff for purchasing the
8852+2 output from QFs under Public Utilities Regulatory Policies
8853+3 Act of 1978.
8854+4 The owners of and any subscribers to a community
8855+5 renewable generation project shall not be considered
8856+6 public utilities or alternative retail electricity
8857+7 suppliers under the Public Utilities Act solely as a
8858+8 result of their interest in or subscription to a community
8859+9 renewable generation project and shall not be required to
8860+10 become an alternative retail electric supplier by
8861+11 participating in a community renewable generation project
8862+12 with a public utility.
8863+13 (O) For the delivery year beginning June 1, 2018, the
8864+14 long-term renewable resources procurement plan required by
8865+15 this subsection (c) shall provide for the Agency to
8866+16 procure contracts to continue offering the Illinois Solar
8867+17 for All Program described in subsection (b) of Section
8868+18 1-56 of this Act, and the contracts approved by the
8869+19 Commission shall be executed by the utilities that are
8870+20 subject to this subsection (c). The long-term renewable
8871+21 resources procurement plan shall allocate up to
8872+22 $50,000,000 per delivery year to fund the programs, and
8873+23 the plan shall determine the amount of funding to be
8874+24 apportioned to the programs identified in subsection (b)
8875+25 of Section 1-56 of this Act; provided that for the
8876+26 delivery years beginning June 1, 2021, June 1, 2022, and
8877+
8878+
8879+
8880+
8881+
8882+ SB1699 Enrolled - 247 - LRB103 27684 AMQ 54061 b
8883+
8884+
8885+SB1699 Enrolled- 248 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 248 - LRB103 27684 AMQ 54061 b
8886+ SB1699 Enrolled - 248 - LRB103 27684 AMQ 54061 b
8887+1 June 1, 2023, the long-term renewable resources
8888+2 procurement plan may average the annual budgets over a
8889+3 3-year period to account for program ramp-up. For the
8890+4 delivery years beginning June 1, 2021, June 1, 2024, June
8891+5 1, 2027, and June 1, 2030 and additional $10,000,000 shall
8892+6 be provided to the Department of Commerce and Economic
8893+7 Opportunity to implement the workforce development
8894+8 programs and reporting as outlined in Section 16-108.12 of
8895+9 the Public Utilities Act. In making the determinations
8896+10 required under this subparagraph (O), the Commission shall
8897+11 consider the experience and performance under the programs
8898+12 and any evaluation reports. The Commission shall also
8899+13 provide for an independent evaluation of those programs on
8900+14 a periodic basis that are funded under this subparagraph
8901+15 (O).
8902+16 (P) All programs and procurements under this
8903+17 subsection (c) shall be designed to encourage
8904+18 participating projects to use a diverse and equitable
8905+19 workforce and a diverse set of contractors, including
8906+20 minority-owned businesses, disadvantaged businesses,
8907+21 trade unions, graduates of any workforce training programs
8908+22 administered under this Act, and small businesses.
8909+23 The Agency shall develop a method to optimize
8910+24 procurement of renewable energy credits from proposed
8911+25 utility-scale projects that are located in communities
8912+26 eligible to receive Energy Transition Community Grants
8913+
8914+
8915+
8916+
8917+
8918+ SB1699 Enrolled - 248 - LRB103 27684 AMQ 54061 b
8919+
8920+
8921+SB1699 Enrolled- 249 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 249 - LRB103 27684 AMQ 54061 b
8922+ SB1699 Enrolled - 249 - LRB103 27684 AMQ 54061 b
8923+1 pursuant to Section 10-20 of the Energy Community
8924+2 Reinvestment Act. If this requirement conflicts with other
8925+3 provisions of law or the Agency determines that full
8926+4 compliance with the requirements of this subparagraph (P)
8927+5 would be unreasonably costly or administratively
8928+6 impractical, the Agency is to propose alternative
8929+7 approaches to achieve development of renewable energy
8930+8 resources in communities eligible to receive Energy
8931+9 Transition Community Grants pursuant to Section 10-20 of
8932+10 the Energy Community Reinvestment Act or seek an exemption
8933+11 from this requirement from the Commission.
8934+12 (Q) Each facility listed in subitems (i) through (ix)
8935+13 of item (1) of this subparagraph (Q) for which a renewable
8936+14 energy credit delivery contract is signed after the
8937+15 effective date of this amendatory Act of the 102nd General
8938+16 Assembly is subject to the following requirements through
8939+17 the Agency's long-term renewable resources procurement
8940+18 plan:
8941+19 (1) Each facility shall be subject to the
8942+20 prevailing wage requirements included in the
8943+21 Prevailing Wage Act. The Agency shall require
8944+22 verification that all construction performed on the
8945+23 facility by the renewable energy credit delivery
8946+24 contract holder, its contractors, or its
8947+25 subcontractors relating to construction of the
8948+26 facility is performed by construction employees
8949+
8950+
8951+
8952+
8953+
8954+ SB1699 Enrolled - 249 - LRB103 27684 AMQ 54061 b
8955+
8956+
8957+SB1699 Enrolled- 250 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 250 - LRB103 27684 AMQ 54061 b
8958+ SB1699 Enrolled - 250 - LRB103 27684 AMQ 54061 b
8959+1 receiving an amount for that work equal to or greater
8960+2 than the general prevailing rate, as that term is
8961+3 defined in Section 3 of the Prevailing Wage Act. For
8962+4 purposes of this item (1), "house of worship" means
8963+5 property that is both (1) used exclusively by a
8964+6 religious society or body of persons as a place for
8965+7 religious exercise or religious worship and (2)
8966+8 recognized as exempt from taxation pursuant to Section
8967+9 15-40 of the Property Tax Code. This item (1) shall
8968+10 apply to any the following:
8969+11 (i) all new utility-scale wind projects;
8970+12 (ii) all new utility-scale photovoltaic
8971+13 projects;
8972+14 (iii) all new brownfield photovoltaic
8973+15 projects;
8974+16 (iv) all new photovoltaic community renewable
8975+17 energy facilities that qualify for item (iii) of
8976+18 subparagraph (K) of this paragraph (1);
8977+19 (v) all new community driven community
8978+20 photovoltaic projects that qualify for item (v) of
8979+21 subparagraph (K) of this paragraph (1);
8980+22 (vi) all new photovoltaic projects on public
8981+23 school land distributed renewable energy
8982+24 generation devices on schools that qualify for
8983+25 item (iv) of subparagraph (K) of this paragraph
8984+26 (1);
8985+
8986+
8987+
8988+
8989+
8990+ SB1699 Enrolled - 250 - LRB103 27684 AMQ 54061 b
8991+
8992+
8993+SB1699 Enrolled- 251 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 251 - LRB103 27684 AMQ 54061 b
8994+ SB1699 Enrolled - 251 - LRB103 27684 AMQ 54061 b
8995+1 (vii) all new photovoltaic distributed
8996+2 renewable energy generation devices that (1)
8997+3 qualify for item (i) of subparagraph (K) of this
8998+4 paragraph (1); (2) are not projects that serve
8999+5 single-family or multi-family residential
9000+6 buildings; and (3) are not houses of worship where
9001+7 the aggregate capacity including collocated
9002+8 projects would not exceed 100 kilowatts;
9003+9 (viii) all new photovoltaic distributed
9004+10 renewable energy generation devices that (1)
9005+11 qualify for item (ii) of subparagraph (K) of this
9006+12 paragraph (1); (2) are not projects that serve
9007+13 single-family or multi-family residential
9008+14 buildings; and (3) are not houses of worship where
9009+15 the aggregate capacity including collocated
9010+16 projects would not exceed 100 kilowatts;
9011+17 (ix) all new, modernized, or retooled
9012+18 hydropower facilities.
9013+19 (2) Renewable energy credits procured from new
9014+20 utility-scale wind projects, new utility-scale solar
9015+21 projects, and new brownfield solar projects pursuant
9016+22 to Agency procurement events occurring after the
9017+23 effective date of this amendatory Act of the 102nd
9018+24 General Assembly must be from facilities built by
9019+25 general contractors that must enter into a project
9020+26 labor agreement, as defined by this Act, prior to
9021+
9022+
9023+
9024+
9025+
9026+ SB1699 Enrolled - 251 - LRB103 27684 AMQ 54061 b
9027+
9028+
9029+SB1699 Enrolled- 252 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 252 - LRB103 27684 AMQ 54061 b
9030+ SB1699 Enrolled - 252 - LRB103 27684 AMQ 54061 b
9031+1 construction. The project labor agreement shall be
9032+2 filed with the Director in accordance with procedures
9033+3 established by the Agency through its long-term
9034+4 renewable resources procurement plan. Any information
9035+5 submitted to the Agency in this item (2) shall be
9036+6 considered commercially sensitive information. At a
9037+7 minimum, the project labor agreement must provide the
9038+8 names, addresses, and occupations of the owner of the
9039+9 plant and the individuals representing the labor
9040+10 organization employees participating in the project
9041+11 labor agreement consistent with the Project Labor
9042+12 Agreements Act. The agreement must also specify the
9043+13 terms and conditions as defined by this Act.
9044+14 (3) It is the intent of this Section to ensure that
9045+15 economic development occurs across Illinois
9046+16 communities, that emerging businesses may grow, and
9047+17 that there is improved access to the clean energy
9048+18 economy by persons who have greater economic burdens
9049+19 to success. The Agency shall take into consideration
9050+20 the unique cost of compliance of this subparagraph (Q)
9051+21 that might be borne by equity eligible contractors,
9052+22 shall include such costs when determining the price of
9053+23 renewable energy credits in the Adjustable Block
9054+24 program, and shall take such costs into consideration
9055+25 in a nondiscriminatory manner when comparing bids for
9056+26 competitive procurements. The Agency shall consider
9057+
9058+
9059+
9060+
9061+
9062+ SB1699 Enrolled - 252 - LRB103 27684 AMQ 54061 b
9063+
9064+
9065+SB1699 Enrolled- 253 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 253 - LRB103 27684 AMQ 54061 b
9066+ SB1699 Enrolled - 253 - LRB103 27684 AMQ 54061 b
9067+1 costs associated with compliance whether in the
9068+2 development, financing, or construction of projects.
9069+3 The Agency shall periodically review the assumptions
9070+4 in these costs and may adjust prices, in compliance
9071+5 with subparagraph (M) of this paragraph (1).
9072+6 (R) In its long-term renewable resources procurement
9073+7 plan, the Agency shall establish a self-direct renewable
9074+8 portfolio standard compliance program for eligible
9075+9 self-direct customers that purchase renewable energy
9076+10 credits from utility-scale wind and solar projects through
9077+11 long-term agreements for purchase of renewable energy
9078+12 credits as described in this Section. Such long-term
9079+13 agreements may include the purchase of energy or other
9080+14 products on a physical or financial basis and may involve
9081+15 an alternative retail electric supplier as defined in
9082+16 Section 16-102 of the Public Utilities Act. This program
9083+17 shall take effect in the delivery year commencing June 1,
9084+18 2023.
9085+19 (1) For the purposes of this subparagraph:
9086+20 "Eligible self-direct customer" means any retail
9087+21 customers of an electric utility that serves 3,000,000
9088+22 or more retail customers in the State and whose total
9089+23 highest 30-minute demand was more than 10,000
9090+24 kilowatts, or any retail customers of an electric
9091+25 utility that serves less than 3,000,000 retail
9092+26 customers but more than 500,000 retail customers in
9093+
9094+
9095+
9096+
9097+
9098+ SB1699 Enrolled - 253 - LRB103 27684 AMQ 54061 b
9099+
9100+
9101+SB1699 Enrolled- 254 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 254 - LRB103 27684 AMQ 54061 b
9102+ SB1699 Enrolled - 254 - LRB103 27684 AMQ 54061 b
9103+1 the State and whose total highest 15-minute demand was
9104+2 more than 10,000 kilowatts.
9105+3 "Retail customer" has the meaning set forth in
9106+4 Section 16-102 of the Public Utilities Act and
9107+5 multiple retail customer accounts under the same
9108+6 corporate parent may aggregate their account demands
9109+7 to meet the 10,000 kilowatt threshold. The criteria
9110+8 for determining whether this subparagraph is
9111+9 applicable to a retail customer shall be based on the
9112+10 12 consecutive billing periods prior to the start of
9113+11 the year in which the application is filed.
9114+12 (2) For renewable energy credits to count toward
9115+13 the self-direct renewable portfolio standard
9116+14 compliance program, they must:
9117+15 (i) qualify as renewable energy credits as
9118+16 defined in Section 1-10 of this Act;
9119+17 (ii) be sourced from one or more renewable
9120+18 energy generating facilities that comply with the
9121+19 geographic requirements as set forth in
9122+20 subparagraph (I) of paragraph (1) of subsection
9123+21 (c) as interpreted through the Agency's long-term
9124+22 renewable resources procurement plan, or, where
9125+23 applicable, the geographic requirements that
9126+24 governed utility-scale renewable energy credits at
9127+25 the time the eligible self-direct customer entered
9128+26 into the applicable renewable energy credit
9129+
9130+
9131+
9132+
9133+
9134+ SB1699 Enrolled - 254 - LRB103 27684 AMQ 54061 b
9135+
9136+
9137+SB1699 Enrolled- 255 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 255 - LRB103 27684 AMQ 54061 b
9138+ SB1699 Enrolled - 255 - LRB103 27684 AMQ 54061 b
9139+1 purchase agreement;
9140+2 (iii) be procured through long-term contracts
9141+3 with term lengths of at least 10 years either
9142+4 directly with the renewable energy generating
9143+5 facility or through a bundled power purchase
9144+6 agreement, a virtual power purchase agreement, an
9145+7 agreement between the renewable generating
9146+8 facility, an alternative retail electric supplier,
9147+9 and the customer, or such other structure as is
9148+10 permissible under this subparagraph (R);
9149+11 (iv) be equivalent in volume to at least 40%
9150+12 of the eligible self-direct customer's usage,
9151+13 determined annually by the eligible self-direct
9152+14 customer's usage during the previous delivery
9153+15 year, measured to the nearest megawatt-hour;
9154+16 (v) be retired by or on behalf of the large
9155+17 energy customer;
9156+18 (vi) be sourced from new utility-scale wind
9157+19 projects or new utility-scale solar projects; and
9158+20 (vii) if the contracts for renewable energy
9159+21 credits are entered into after the effective date
9160+22 of this amendatory Act of the 102nd General
9161+23 Assembly, the new utility-scale wind projects or
9162+24 new utility-scale solar projects must comply with
9163+25 the requirements established in subparagraphs (P)
9164+26 and (Q) of paragraph (1) of this subsection (c)
9165+
9166+
9167+
9168+
9169+
9170+ SB1699 Enrolled - 255 - LRB103 27684 AMQ 54061 b
9171+
9172+
9173+SB1699 Enrolled- 256 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 256 - LRB103 27684 AMQ 54061 b
9174+ SB1699 Enrolled - 256 - LRB103 27684 AMQ 54061 b
9175+1 and subsection (c-10).
9176+2 (3) The self-direct renewable portfolio standard
9177+3 compliance program shall be designed to allow eligible
9178+4 self-direct customers to procure new renewable energy
9179+5 credits from new utility-scale wind projects or new
9180+6 utility-scale photovoltaic projects. The Agency shall
9181+7 annually determine the amount of utility-scale
9182+8 renewable energy credits it will include each year
9183+9 from the self-direct renewable portfolio standard
9184+10 compliance program, subject to receiving qualifying
9185+11 applications. In making this determination, the Agency
9186+12 shall evaluate publicly available analyses and studies
9187+13 of the potential market size for utility-scale
9188+14 renewable energy long-term purchase agreements by
9189+15 commercial and industrial energy customers and make
9190+16 that report publicly available. If demand for
9191+17 participation in the self-direct renewable portfolio
9192+18 standard compliance program exceeds availability, the
9193+19 Agency shall ensure participation is evenly split
9194+20 between commercial and industrial users to the extent
9195+21 there is sufficient demand from both customer classes.
9196+22 Each renewable energy credit procured pursuant to this
9197+23 subparagraph (R) by a self-direct customer shall
9198+24 reduce the total volume of renewable energy credits
9199+25 the Agency is otherwise required to procure from new
9200+26 utility-scale projects pursuant to subparagraph (C) of
9201+
9202+
9203+
9204+
9205+
9206+ SB1699 Enrolled - 256 - LRB103 27684 AMQ 54061 b
9207+
9208+
9209+SB1699 Enrolled- 257 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 257 - LRB103 27684 AMQ 54061 b
9210+ SB1699 Enrolled - 257 - LRB103 27684 AMQ 54061 b
9211+1 paragraph (1) of this subsection (c) on behalf of
9212+2 contracting utilities where the eligible self-direct
9213+3 customer is located. The self-direct customer shall
9214+4 file an annual compliance report with the Agency
9215+5 pursuant to terms established by the Agency through
9216+6 its long-term renewable resources procurement plan to
9217+7 be eligible for participation in this program.
9218+8 Customers must provide the Agency with their most
9219+9 recent electricity billing statements or other
9220+10 information deemed necessary by the Agency to
9221+11 demonstrate they are an eligible self-direct customer.
9222+12 (4) The Commission shall approve a reduction in
9223+13 the volumetric charges collected pursuant to Section
9224+14 16-108 of the Public Utilities Act for approved
9225+15 eligible self-direct customers equivalent to the
9226+16 anticipated cost of renewable energy credit deliveries
9227+17 under contracts for new utility-scale wind and new
9228+18 utility-scale solar entered for each delivery year
9229+19 after the large energy customer begins retiring
9230+20 eligible new utility scale renewable energy credits
9231+21 for self-compliance. The self-direct credit amount
9232+22 shall be determined annually and is equal to the
9233+23 estimated portion of the cost authorized by
9234+24 subparagraph (E) of paragraph (1) of this subsection
9235+25 (c) that supported the annual procurement of
9236+26 utility-scale renewable energy credits in the prior
9237+
9238+
9239+
9240+
9241+
9242+ SB1699 Enrolled - 257 - LRB103 27684 AMQ 54061 b
9243+
9244+
9245+SB1699 Enrolled- 258 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 258 - LRB103 27684 AMQ 54061 b
9246+ SB1699 Enrolled - 258 - LRB103 27684 AMQ 54061 b
9247+1 delivery year using a methodology described in the
9248+2 long-term renewable resources procurement plan,
9249+3 expressed on a per kilowatthour basis, and does not
9250+4 include (i) costs associated with any contracts
9251+5 entered into before the delivery year in which the
9252+6 customer files the initial compliance report to be
9253+7 eligible for participation in the self-direct program,
9254+8 and (ii) costs associated with procuring renewable
9255+9 energy credits through existing and future contracts
9256+10 through the Adjustable Block Program, subsection (c-5)
9257+11 of this Section 1-75, and the Solar for All Program.
9258+12 The Agency shall assist the Commission in determining
9259+13 the current and future costs. The Agency must
9260+14 determine the self-direct credit amount for new and
9261+15 existing eligible self-direct customers and submit
9262+16 this to the Commission in an annual compliance filing.
9263+17 The Commission must approve the self-direct credit
9264+18 amount by June 1, 2023 and June 1 of each delivery year
9265+19 thereafter.
9266+20 (5) Customers described in this subparagraph (R)
9267+21 shall apply, on a form developed by the Agency, to the
9268+22 Agency to be designated as a self-direct eligible
9269+23 customer. Once the Agency determines that a
9270+24 self-direct customer is eligible for participation in
9271+25 the program, the self-direct customer will remain
9272+26 eligible until the end of the term of the contract.
9273+
9274+
9275+
9276+
9277+
9278+ SB1699 Enrolled - 258 - LRB103 27684 AMQ 54061 b
9279+
9280+
9281+SB1699 Enrolled- 259 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 259 - LRB103 27684 AMQ 54061 b
9282+ SB1699 Enrolled - 259 - LRB103 27684 AMQ 54061 b
9283+1 Thereafter, application may be made not less than 12
9284+2 months before the filing date of the long-term
9285+3 renewable resources procurement plan described in this
9286+4 Act. At a minimum, such application shall contain the
9287+5 following:
9288+6 (i) the customer's certification that, at the
9289+7 time of the customer's application, the customer
9290+8 qualifies to be a self-direct eligible customer,
9291+9 including documents demonstrating that
9292+10 qualification;
9293+11 (ii) the customer's certification that the
9294+12 customer has entered into or will enter into by
9295+13 the beginning of the applicable procurement year,
9296+14 one or more bilateral contracts for new wind
9297+15 projects or new photovoltaic projects, including
9298+16 supporting documentation;
9299+17 (iii) certification that the contract or
9300+18 contracts for new renewable energy resources are
9301+19 long-term contracts with term lengths of at least
9302+20 10 years, including supporting documentation;
9303+21 (iv) certification of the quantities of
9304+22 renewable energy credits that the customer will
9305+23 purchase each year under such contract or
9306+24 contracts, including supporting documentation;
9307+25 (v) proof that the contract is sufficient to
9308+26 produce renewable energy credits to be equivalent
9309+
9310+
9311+
9312+
9313+
9314+ SB1699 Enrolled - 259 - LRB103 27684 AMQ 54061 b
9315+
9316+
9317+SB1699 Enrolled- 260 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 260 - LRB103 27684 AMQ 54061 b
9318+ SB1699 Enrolled - 260 - LRB103 27684 AMQ 54061 b
9319+1 in volume to at least 40% of the large energy
9320+2 customer's usage from the previous delivery year,
9321+3 measured to the nearest megawatt-hour; and
9322+4 (vi) certification that the customer intends
9323+5 to maintain the contract for the duration of the
9324+6 length of the contract.
9325+7 (6) If a customer receives the self-direct credit
9326+8 but fails to properly procure and retire renewable
9327+9 energy credits as required under this subparagraph
9328+10 (R), the Commission, on petition from the Agency and
9329+11 after notice and hearing, may direct such customer's
9330+12 utility to recover the cost of the wrongfully received
9331+13 self-direct credits plus interest through an adder to
9332+14 charges assessed pursuant to Section 16-108 of the
9333+15 Public Utilities Act. Self-direct customers who
9334+16 knowingly fail to properly procure and retire
9335+17 renewable energy credits and do not notify the Agency
9336+18 are ineligible for continued participation in the
9337+19 self-direct renewable portfolio standard compliance
9338+20 program.
9339+21 (2) (Blank).
9340+22 (3) (Blank).
9341+23 (4) The electric utility shall retire all renewable
9342+24 energy credits used to comply with the standard.
9343+25 (5) Beginning with the 2010 delivery year and ending
9344+26 June 1, 2017, an electric utility subject to this
9345+
9346+
9347+
9348+
9349+
9350+ SB1699 Enrolled - 260 - LRB103 27684 AMQ 54061 b
9351+
9352+
9353+SB1699 Enrolled- 261 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 261 - LRB103 27684 AMQ 54061 b
9354+ SB1699 Enrolled - 261 - LRB103 27684 AMQ 54061 b
9355+1 subsection (c) shall apply the lesser of the maximum
9356+2 alternative compliance payment rate or the most recent
9357+3 estimated alternative compliance payment rate for its
9358+4 service territory for the corresponding compliance period,
9359+5 established pursuant to subsection (d) of Section 16-115D
9360+6 of the Public Utilities Act to its retail customers that
9361+7 take service pursuant to the electric utility's hourly
9362+8 pricing tariff or tariffs. The electric utility shall
9363+9 retain all amounts collected as a result of the
9364+10 application of the alternative compliance payment rate or
9365+11 rates to such customers, and, beginning in 2011, the
9366+12 utility shall include in the information provided under
9367+13 item (1) of subsection (d) of Section 16-111.5 of the
9368+14 Public Utilities Act the amounts collected under the
9369+15 alternative compliance payment rate or rates for the prior
9370+16 year ending May 31. Notwithstanding any limitation on the
9371+17 procurement of renewable energy resources imposed by item
9372+18 (2) of this subsection (c), the Agency shall increase its
9373+19 spending on the purchase of renewable energy resources to
9374+20 be procured by the electric utility for the next plan year
9375+21 by an amount equal to the amounts collected by the utility
9376+22 under the alternative compliance payment rate or rates in
9377+23 the prior year ending May 31.
9378+24 (6) The electric utility shall be entitled to recover
9379+25 all of its costs associated with the procurement of
9380+26 renewable energy credits under plans approved under this
9381+
9382+
9383+
9384+
9385+
9386+ SB1699 Enrolled - 261 - LRB103 27684 AMQ 54061 b
9387+
9388+
9389+SB1699 Enrolled- 262 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 262 - LRB103 27684 AMQ 54061 b
9390+ SB1699 Enrolled - 262 - LRB103 27684 AMQ 54061 b
9391+1 Section and Section 16-111.5 of the Public Utilities Act.
9392+2 These costs shall include associated reasonable expenses
9393+3 for implementing the procurement programs, including, but
9394+4 not limited to, the costs of administering and evaluating
9395+5 the Adjustable Block program, through an automatic
9396+6 adjustment clause tariff in accordance with subsection (k)
9397+7 of Section 16-108 of the Public Utilities Act.
9398+8 (7) Renewable energy credits procured from new
9399+9 photovoltaic projects or new distributed renewable energy
9400+10 generation devices under this Section after June 1, 2017
9401+11 (the effective date of Public Act 99-906) must be procured
9402+12 from devices installed by a qualified person in compliance
9403+13 with the requirements of Section 16-128A of the Public
9404+14 Utilities Act and any rules or regulations adopted
9405+15 thereunder.
9406+16 In meeting the renewable energy requirements of this
9407+17 subsection (c), to the extent feasible and consistent with
9408+18 State and federal law, the renewable energy credit
9409+19 procurements, Adjustable Block solar program, and
9410+20 community renewable generation program shall provide
9411+21 employment opportunities for all segments of the
9412+22 population and workforce, including minority-owned and
9413+23 female-owned business enterprises, and shall not,
9414+24 consistent with State and federal law, discriminate based
9415+25 on race or socioeconomic status.
9416+26 (c-5) Procurement of renewable energy credits from new
9417+
9418+
9419+
9420+
9421+
9422+ SB1699 Enrolled - 262 - LRB103 27684 AMQ 54061 b
9423+
9424+
9425+SB1699 Enrolled- 263 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 263 - LRB103 27684 AMQ 54061 b
9426+ SB1699 Enrolled - 263 - LRB103 27684 AMQ 54061 b
9427+1 renewable energy facilities installed at or adjacent to the
9428+2 sites of electric generating facilities that burn or burned
9429+3 coal as their primary fuel source.
9430+4 (1) In addition to the procurement of renewable energy
9431+5 credits pursuant to long-term renewable resources
9432+6 procurement plans in accordance with subsection (c) of
9433+7 this Section and Section 16-111.5 of the Public Utilities
9434+8 Act, the Agency shall conduct procurement events in
9435+9 accordance with this subsection (c-5) for the procurement
9436+10 by electric utilities that served more than 300,000 retail
9437+11 customers in this State as of January 1, 2019 of renewable
9438+12 energy credits from new renewable energy facilities to be
9439+13 installed at or adjacent to the sites of electric
9440+14 generating facilities that, as of January 1, 2016, burned
9441+15 coal as their primary fuel source and meet the other
9442+16 criteria specified in this subsection (c-5). For purposes
9443+17 of this subsection (c-5), "new renewable energy facility"
9444+18 means a new utility-scale solar project as defined in this
9445+19 Section 1-75. The renewable energy credits procured
9446+20 pursuant to this subsection (c-5) may be included or
9447+21 counted for purposes of compliance with the amounts of
9448+22 renewable energy credits required to be procured pursuant
9449+23 to subsection (c) of this Section to the extent that there
9450+24 are otherwise shortfalls in compliance with such
9451+25 requirements. The procurement of renewable energy credits
9452+26 by electric utilities pursuant to this subsection (c-5)
9453+
9454+
9455+
9456+
9457+
9458+ SB1699 Enrolled - 263 - LRB103 27684 AMQ 54061 b
9459+
9460+
9461+SB1699 Enrolled- 264 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 264 - LRB103 27684 AMQ 54061 b
9462+ SB1699 Enrolled - 264 - LRB103 27684 AMQ 54061 b
9463+1 shall be funded solely by revenues collected from the Coal
9464+2 to Solar and Energy Storage Initiative Charge provided for
9465+3 in this subsection (c-5) and subsection (i-5) of Section
9466+4 16-108 of the Public Utilities Act, shall not be funded by
9467+5 revenues collected through any of the other funding
9468+6 mechanisms provided for in subsection (c) of this Section,
9469+7 and shall not be subject to the limitation imposed by
9470+8 subsection (c) on charges to retail customers for costs to
9471+9 procure renewable energy resources pursuant to subsection
9472+10 (c), and shall not be subject to any other requirements or
9473+11 limitations of subsection (c).
9474+12 (2) The Agency shall conduct 2 procurement events to
9475+13 select owners of electric generating facilities meeting
9476+14 the eligibility criteria specified in this subsection
9477+15 (c-5) to enter into long-term contracts to sell renewable
9478+16 energy credits to electric utilities serving more than
9479+17 300,000 retail customers in this State as of January 1,
9480+18 2019. The first procurement event shall be conducted no
9481+19 later than March 31, 2022, unless the Agency elects to
9482+20 delay it, until no later than May 1, 2022, due to its
9483+21 overall volume of work, and shall be to select owners of
9484+22 electric generating facilities located in this State and
9485+23 south of federal Interstate Highway 80 that meet the
9486+24 eligibility criteria specified in this subsection (c-5).
9487+25 The second procurement event shall be conducted no sooner
9488+26 than September 30, 2022 and no later than October 31, 2022
9489+
9490+
9491+
9492+
9493+
9494+ SB1699 Enrolled - 264 - LRB103 27684 AMQ 54061 b
9495+
9496+
9497+SB1699 Enrolled- 265 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 265 - LRB103 27684 AMQ 54061 b
9498+ SB1699 Enrolled - 265 - LRB103 27684 AMQ 54061 b
9499+1 and shall be to select owners of electric generating
9500+2 facilities located anywhere in this State that meet the
9501+3 eligibility criteria specified in this subsection (c-5).
9502+4 The Agency shall establish and announce a time period,
9503+5 which shall begin no later than 30 days prior to the
9504+6 scheduled date for the procurement event, during which
9505+7 applicants may submit applications to be selected as
9506+8 suppliers of renewable energy credits pursuant to this
9507+9 subsection (c-5). The eligibility criteria for selection
9508+10 as a supplier of renewable energy credits pursuant to this
9509+11 subsection (c-5) shall be as follows:
9510+12 (A) The applicant owns an electric generating
9511+13 facility located in this State that: (i) as of January
9512+14 1, 2016, burned coal as its primary fuel to generate
9513+15 electricity; and (ii) has, or had prior to retirement,
9514+16 an electric generating capacity of at least 150
9515+17 megawatts. The electric generating facility can be
9516+18 either: (i) retired as of the date of the procurement
9517+19 event; or (ii) still operating as of the date of the
9518+20 procurement event.
9519+21 (B) The applicant is not (i) an electric
9520+22 cooperative as defined in Section 3-119 of the Public
9521+23 Utilities Act, or (ii) an entity described in
9522+24 subsection (b)(1) of Section 3-105 of the Public
9523+25 Utilities Act, or an association or consortium of or
9524+26 an entity owned by entities described in (i) or (ii);
9525+
9526+
9527+
9528+
9529+
9530+ SB1699 Enrolled - 265 - LRB103 27684 AMQ 54061 b
9531+
9532+
9533+SB1699 Enrolled- 266 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 266 - LRB103 27684 AMQ 54061 b
9534+ SB1699 Enrolled - 266 - LRB103 27684 AMQ 54061 b
9535+1 and the coal-fueled electric generating facility was
9536+2 at one time owned, in whole or in part, by a public
9537+3 utility as defined in Section 3-105 of the Public
9538+4 Utilities Act.
9539+5 (C) If participating in the first procurement
9540+6 event, the applicant proposes and commits to construct
9541+7 and operate, at the site, and if necessary for
9542+8 sufficient space on property adjacent to the existing
9543+9 property, at which the electric generating facility
9544+10 identified in paragraph (A) is located: (i) a new
9545+11 renewable energy facility of at least 20 megawatts but
9546+12 no more than 100 megawatts of electric generating
9547+13 capacity, and (ii) an energy storage facility having a
9548+14 storage capacity equal to at least 2 megawatts and at
9549+15 most 10 megawatts. If participating in the second
9550+16 procurement event, the applicant proposes and commits
9551+17 to construct and operate, at the site, and if
9552+18 necessary for sufficient space on property adjacent to
9553+19 the existing property, at which the electric
9554+20 generating facility identified in paragraph (A) is
9555+21 located: (i) a new renewable energy facility of at
9556+22 least 5 megawatts but no more than 20 megawatts of
9557+23 electric generating capacity, and (ii) an energy
9558+24 storage facility having a storage capacity equal to at
9559+25 least 0.5 megawatts and at most one megawatt.
9560+26 (D) The applicant agrees that the new renewable
9561+
9562+
9563+
9564+
9565+
9566+ SB1699 Enrolled - 266 - LRB103 27684 AMQ 54061 b
9567+
9568+
9569+SB1699 Enrolled- 267 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 267 - LRB103 27684 AMQ 54061 b
9570+ SB1699 Enrolled - 267 - LRB103 27684 AMQ 54061 b
9571+1 energy facility and the energy storage facility will
9572+2 be constructed or installed by a qualified entity or
9573+3 entities in compliance with the requirements of
9574+4 subsection (g) of Section 16-128A of the Public
9575+5 Utilities Act and any rules adopted thereunder.
9576+6 (E) The applicant agrees that personnel operating
9577+7 the new renewable energy facility and the energy
9578+8 storage facility will have the requisite skills,
9579+9 knowledge, training, experience, and competence, which
9580+10 may be demonstrated by completion or current
9581+11 participation and ultimate completion by employees of
9582+12 an accredited or otherwise recognized apprenticeship
9583+13 program for the employee's particular craft, trade, or
9584+14 skill, including through training and education
9585+15 courses and opportunities offered by the owner to
9586+16 employees of the coal-fueled electric generating
9587+17 facility or by previous employment experience
9588+18 performing the employee's particular work skill or
9589+19 function.
9590+20 (F) The applicant commits that not less than the
9591+21 prevailing wage, as determined pursuant to the
9592+22 Prevailing Wage Act, will be paid to the applicant's
9593+23 employees engaged in construction activities
9594+24 associated with the new renewable energy facility and
9595+25 the new energy storage facility and to the employees
9596+26 of applicant's contractors engaged in construction
9597+
9598+
9599+
9600+
9601+
9602+ SB1699 Enrolled - 267 - LRB103 27684 AMQ 54061 b
9603+
9604+
9605+SB1699 Enrolled- 268 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 268 - LRB103 27684 AMQ 54061 b
9606+ SB1699 Enrolled - 268 - LRB103 27684 AMQ 54061 b
9607+1 activities associated with the new renewable energy
9608+2 facility and the new energy storage facility, and
9609+3 that, on or before the commercial operation date of
9610+4 the new renewable energy facility, the applicant shall
9611+5 file a report with the Agency certifying that the
9612+6 requirements of this subparagraph (F) have been met.
9613+7 (G) The applicant commits that if selected, it
9614+8 will negotiate a project labor agreement for the
9615+9 construction of the new renewable energy facility and
9616+10 associated energy storage facility that includes
9617+11 provisions requiring the parties to the agreement to
9618+12 work together to establish diversity threshold
9619+13 requirements and to ensure best efforts to meet
9620+14 diversity targets, improve diversity at the applicable
9621+15 job site, create diverse apprenticeship opportunities,
9622+16 and create opportunities to employ former coal-fired
9623+17 power plant workers.
9624+18 (H) The applicant commits to enter into a contract
9625+19 or contracts for the applicable duration to provide
9626+20 specified numbers of renewable energy credits each
9627+21 year from the new renewable energy facility to
9628+22 electric utilities that served more than 300,000
9629+23 retail customers in this State as of January 1, 2019,
9630+24 at a price of $30 per renewable energy credit. The
9631+25 price per renewable energy credit shall be fixed at
9632+26 $30 for the applicable duration and the renewable
9633+
9634+
9635+
9636+
9637+
9638+ SB1699 Enrolled - 268 - LRB103 27684 AMQ 54061 b
9639+
9640+
9641+SB1699 Enrolled- 269 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 269 - LRB103 27684 AMQ 54061 b
9642+ SB1699 Enrolled - 269 - LRB103 27684 AMQ 54061 b
9643+1 energy credits shall not be indexed renewable energy
9644+2 credits as provided for in item (v) of subparagraph
9645+3 (G) of paragraph (1) of subsection (c) of Section 1-75
9646+4 of this Act. The applicable duration of each contract
9647+5 shall be 20 years, unless the applicant is physically
9648+6 interconnected to the PJM Interconnection, LLC
9649+7 transmission grid and had a generating capacity of at
9650+8 least 1,200 megawatts as of January 1, 2021, in which
9651+9 case the applicable duration of the contract shall be
9652+10 15 years.
9653+11 (I) The applicant's application is certified by an
9654+12 officer of the applicant and by an officer of the
9655+13 applicant's ultimate parent company, if any.
9656+14 (3) An applicant may submit applications to contract
9657+15 to supply renewable energy credits from more than one new
9658+16 renewable energy facility to be constructed at or adjacent
9659+17 to one or more qualifying electric generating facilities
9660+18 owned by the applicant. The Agency may select new
9661+19 renewable energy facilities to be located at or adjacent
9662+20 to the sites of more than one qualifying electric
9663+21 generation facility owned by an applicant to contract with
9664+22 electric utilities to supply renewable energy credits from
9665+23 such facilities.
9666+24 (4) The Agency shall assess fees to each applicant to
9667+25 recover the Agency's costs incurred in receiving and
9668+26 evaluating applications, conducting the procurement event,
9669+
9670+
9671+
9672+
9673+
9674+ SB1699 Enrolled - 269 - LRB103 27684 AMQ 54061 b
9675+
9676+
9677+SB1699 Enrolled- 270 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 270 - LRB103 27684 AMQ 54061 b
9678+ SB1699 Enrolled - 270 - LRB103 27684 AMQ 54061 b
9679+1 developing contracts for sale, delivery and purchase of
9680+2 renewable energy credits, and monitoring the
9681+3 administration of such contracts, as provided for in this
9682+4 subsection (c-5), including fees paid to a procurement
9683+5 administrator retained by the Agency for one or more of
9684+6 these purposes.
9685+7 (5) The Agency shall select the applicants and the new
9686+8 renewable energy facilities to contract with electric
9687+9 utilities to supply renewable energy credits in accordance
9688+10 with this subsection (c-5). In the first procurement
9689+11 event, the Agency shall select applicants and new
9690+12 renewable energy facilities to supply renewable energy
9691+13 credits, at a price of $30 per renewable energy credit,
9692+14 aggregating to no less than 400,000 renewable energy
9693+15 credits per year for the applicable duration, assuming
9694+16 sufficient qualifying applications to supply, in the
9695+17 aggregate, at least that amount of renewable energy
9696+18 credits per year; and not more than 580,000 renewable
9697+19 energy credits per year for the applicable duration. In
9698+20 the second procurement event, the Agency shall select
9699+21 applicants and new renewable energy facilities to supply
9700+22 renewable energy credits, at a price of $30 per renewable
9701+23 energy credit, aggregating to no more than 625,000
9702+24 renewable energy credits per year less the amount of
9703+25 renewable energy credits each year contracted for as a
9704+26 result of the first procurement event, for the applicable
9705+
9706+
9707+
9708+
9709+
9710+ SB1699 Enrolled - 270 - LRB103 27684 AMQ 54061 b
9711+
9712+
9713+SB1699 Enrolled- 271 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 271 - LRB103 27684 AMQ 54061 b
9714+ SB1699 Enrolled - 271 - LRB103 27684 AMQ 54061 b
9715+1 durations. The number of renewable energy credits to be
9716+2 procured as specified in this paragraph (5) shall not be
9717+3 reduced based on renewable energy credits procured in the
9718+4 self-direct renewable energy credit compliance program
9719+5 established pursuant to subparagraph (R) of paragraph (1)
9720+6 of subsection (c) of Section 1-75.
9721+7 (6) The obligation to purchase renewable energy
9722+8 credits from the applicants and their new renewable energy
9723+9 facilities selected by the Agency shall be allocated to
9724+10 the electric utilities based on their respective
9725+11 percentages of kilowatthours delivered to delivery
9726+12 services customers to the aggregate kilowatthour
9727+13 deliveries by the electric utilities to delivery services
9728+14 customers for the year ended December 31, 2021. In order
9729+15 to achieve these allocation percentages between or among
9730+16 the electric utilities, the Agency shall require each
9731+17 applicant that is selected in the procurement event to
9732+18 enter into a contract with each electric utility for the
9733+19 sale and purchase of renewable energy credits from each
9734+20 new renewable energy facility to be constructed and
9735+21 operated by the applicant, with the sale and purchase
9736+22 obligations under the contracts to aggregate to the total
9737+23 number of renewable energy credits per year to be supplied
9738+24 by the applicant from the new renewable energy facility.
9739+25 (7) The Agency shall submit its proposed selection of
9740+26 applicants, new renewable energy facilities to be
9741+
9742+
9743+
9744+
9745+
9746+ SB1699 Enrolled - 271 - LRB103 27684 AMQ 54061 b
9747+
9748+
9749+SB1699 Enrolled- 272 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 272 - LRB103 27684 AMQ 54061 b
9750+ SB1699 Enrolled - 272 - LRB103 27684 AMQ 54061 b
9751+1 constructed, and renewable energy credit amounts for each
9752+2 procurement event to the Commission for approval. The
9753+3 Commission shall, within 2 business days after receipt of
9754+4 the Agency's proposed selections, approve the proposed
9755+5 selections if it determines that the applicants and the
9756+6 new renewable energy facilities to be constructed meet the
9757+7 selection criteria set forth in this subsection (c-5) and
9758+8 that the Agency seeks approval for contracts of applicable
9759+9 durations aggregating to no more than the maximum amount
9760+10 of renewable energy credits per year authorized by this
9761+11 subsection (c-5) for the procurement event, at a price of
9762+12 $30 per renewable energy credit.
9763+13 (8) The Agency, in conjunction with its procurement
9764+14 administrator if one is retained, the electric utilities,
9765+15 and potential applicants for contracts to produce and
9766+16 supply renewable energy credits pursuant to this
9767+17 subsection (c-5), shall develop a standard form contract
9768+18 for the sale, delivery and purchase of renewable energy
9769+19 credits pursuant to this subsection (c-5). Each contract
9770+20 resulting from the first procurement event shall allow for
9771+21 a commercial operation date for the new renewable energy
9772+22 facility of either June 1, 2023 or June 1, 2024, with such
9773+23 dates subject to adjustment as provided in this paragraph.
9774+24 Each contract resulting from the second procurement event
9775+25 shall provide for a commercial operation date on June 1
9776+26 next occurring up to 48 months after execution of the
9777+
9778+
9779+
9780+
9781+
9782+ SB1699 Enrolled - 272 - LRB103 27684 AMQ 54061 b
9783+
9784+
9785+SB1699 Enrolled- 273 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 273 - LRB103 27684 AMQ 54061 b
9786+ SB1699 Enrolled - 273 - LRB103 27684 AMQ 54061 b
9787+1 contract. Each contract shall provide that the owner shall
9788+2 receive payments for renewable energy credits for the
9789+3 applicable durations beginning with the commercial
9790+4 operation date of the new renewable energy facility. The
9791+5 form contract shall provide for adjustments to the
9792+6 commercial operation and payment start dates as needed due
9793+7 to any delays in completing the procurement and
9794+8 contracting processes, in finalizing interconnection
9795+9 agreements and installing interconnection facilities, and
9796+10 in obtaining other necessary governmental permits and
9797+11 approvals. The form contract shall be, to the maximum
9798+12 extent possible, consistent with standard electric
9799+13 industry contracts for sale, delivery, and purchase of
9800+14 renewable energy credits while taking into account the
9801+15 specific requirements of this subsection (c-5). The form
9802+16 contract shall provide for over-delivery and
9803+17 under-delivery of renewable energy credits within
9804+18 reasonable ranges during each 12-month period and penalty,
9805+19 default, and enforcement provisions for failure of the
9806+20 selling party to deliver renewable energy credits as
9807+21 specified in the contract and to comply with the
9808+22 requirements of this subsection (c-5). The standard form
9809+23 contract shall specify that all renewable energy credits
9810+24 delivered to the electric utility pursuant to the contract
9811+25 shall be retired. The Agency shall make the proposed
9812+26 contracts available for a reasonable period for comment by
9813+
9814+
9815+
9816+
9817+
9818+ SB1699 Enrolled - 273 - LRB103 27684 AMQ 54061 b
9819+
9820+
9821+SB1699 Enrolled- 274 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 274 - LRB103 27684 AMQ 54061 b
9822+ SB1699 Enrolled - 274 - LRB103 27684 AMQ 54061 b
9823+1 potential applicants, and shall publish the final form
9824+2 contract at least 30 days before the date of the first
9825+3 procurement event.
9826+4 (9) Coal to Solar and Energy Storage Initiative
9827+5 Charge.
9828+6 (A) By no later than July 1, 2022, each electric
9829+7 utility that served more than 300,000 retail customers
9830+8 in this State as of January 1, 2019 shall file a tariff
9831+9 with the Commission for the billing and collection of
9832+10 a Coal to Solar and Energy Storage Initiative Charge
9833+11 in accordance with subsection (i-5) of Section 16-108
9834+12 of the Public Utilities Act, with such tariff to be
9835+13 effective, following review and approval or
9836+14 modification by the Commission, beginning January 1,
9837+15 2023. The tariff shall provide for the calculation and
9838+16 setting of the electric utility's Coal to Solar and
9839+17 Energy Storage Initiative Charge to collect revenues
9840+18 estimated to be sufficient, in the aggregate, (i) to
9841+19 enable the electric utility to pay for the renewable
9842+20 energy credits it has contracted to purchase in the
9843+21 delivery year beginning June 1, 2023 and each delivery
9844+22 year thereafter from new renewable energy facilities
9845+23 located at the sites of qualifying electric generating
9846+24 facilities, and (ii) to fund the grant payments to be
9847+25 made in each delivery year by the Department of
9848+26 Commerce and Economic Opportunity, or any successor
9849+
9850+
9851+
9852+
9853+
9854+ SB1699 Enrolled - 274 - LRB103 27684 AMQ 54061 b
9855+
9856+
9857+SB1699 Enrolled- 275 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 275 - LRB103 27684 AMQ 54061 b
9858+ SB1699 Enrolled - 275 - LRB103 27684 AMQ 54061 b
9859+1 department or agency, which shall be referred to in
9860+2 this subsection (c-5) as the Department, pursuant to
9861+3 paragraph (10) of this subsection (c-5). The electric
9862+4 utility's tariff shall provide for the billing and
9863+5 collection of the Coal to Solar and Energy Storage
9864+6 Initiative Charge on each kilowatthour of electricity
9865+7 delivered to its delivery services customers within
9866+8 its service territory and shall provide for an annual
9867+9 reconciliation of revenues collected with actual
9868+10 costs, in accordance with subsection (i-5) of Section
9869+11 16-108 of the Public Utilities Act.
9870+12 (B) Each electric utility shall remit on a monthly
9871+13 basis to the State Treasurer, for deposit in the Coal
9872+14 to Solar and Energy Storage Initiative Fund provided
9873+15 for in this subsection (c-5), the electric utility's
9874+16 collections of the Coal to Solar and Energy Storage
9875+17 Initiative Charge in the amount estimated to be needed
9876+18 by the Department for grant payments pursuant to grant
9877+19 contracts entered into by the Department pursuant to
9878+20 paragraph (10) of this subsection (c-5).
9879+21 (10) Coal to Solar and Energy Storage Initiative Fund.
9880+22 (A) The Coal to Solar and Energy Storage
9881+23 Initiative Fund is established as a special fund in
9882+24 the State treasury. The Coal to Solar and Energy
9883+25 Storage Initiative Fund is authorized to receive, by
9884+26 statutory deposit, that portion specified in item (B)
9885+
9886+
9887+
9888+
9889+
9890+ SB1699 Enrolled - 275 - LRB103 27684 AMQ 54061 b
9891+
9892+
9893+SB1699 Enrolled- 276 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 276 - LRB103 27684 AMQ 54061 b
9894+ SB1699 Enrolled - 276 - LRB103 27684 AMQ 54061 b
9895+1 of paragraph (9) of this subsection (c-5) of moneys
9896+2 collected by electric utilities through imposition of
9897+3 the Coal to Solar and Energy Storage Initiative Charge
9898+4 required by this subsection (c-5). The Coal to Solar
9899+5 and Energy Storage Initiative Fund shall be
9900+6 administered by the Department to provide grants to
9901+7 support the installation and operation of energy
9902+8 storage facilities at the sites of qualifying electric
9903+9 generating facilities meeting the criteria specified
9904+10 in this paragraph (10).
9905+11 (B) The Coal to Solar and Energy Storage
9906+12 Initiative Fund shall not be subject to sweeps,
9907+13 administrative charges, or chargebacks, including, but
9908+14 not limited to, those authorized under Section 8h of
9909+15 the State Finance Act, that would in any way result in
9910+16 the transfer of those funds from the Coal to Solar and
9911+17 Energy Storage Initiative Fund to any other fund of
9912+18 this State or in having any such funds utilized for any
9913+19 purpose other than the express purposes set forth in
9914+20 this paragraph (10).
9915+21 (C) The Department shall utilize up to
9916+22 $280,500,000 in the Coal to Solar and Energy Storage
9917+23 Initiative Fund for grants, assuming sufficient
9918+24 qualifying applicants, to support installation of
9919+25 energy storage facilities at the sites of up to 3
9920+26 qualifying electric generating facilities located in
9921+
9922+
9923+
9924+
9925+
9926+ SB1699 Enrolled - 276 - LRB103 27684 AMQ 54061 b
9927+
9928+
9929+SB1699 Enrolled- 277 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 277 - LRB103 27684 AMQ 54061 b
9930+ SB1699 Enrolled - 277 - LRB103 27684 AMQ 54061 b
9931+1 the Midcontinent Independent System Operator, Inc.,
9932+2 region in Illinois and the sites of up to 2 qualifying
9933+3 electric generating facilities located in the PJM
9934+4 Interconnection, LLC region in Illinois that meet the
9935+5 criteria set forth in this subparagraph (C). The
9936+6 criteria for receipt of a grant pursuant to this
9937+7 subparagraph (C) are as follows:
9938+8 (1) the electric generating facility at the
9939+9 site has, or had prior to retirement, an electric
9940+10 generating capacity of at least 150 megawatts;
9941+11 (2) the electric generating facility burns (or
9942+12 burned prior to retirement) coal as its primary
9943+13 source of fuel;
9944+14 (3) if the electric generating facility is
9945+15 retired, it was retired subsequent to January 1,
9946+16 2016;
9947+17 (4) the owner of the electric generating
9948+18 facility has not been selected by the Agency
9949+19 pursuant to this subsection (c-5) of this Section
9950+20 to enter into a contract to sell renewable energy
9951+21 credits to one or more electric utilities from a
9952+22 new renewable energy facility located or to be
9953+23 located at or adjacent to the site at which the
9954+24 electric generating facility is located;
9955+25 (5) the electric generating facility located
9956+26 at the site was at one time owned, in whole or in
9957+
9958+
9959+
9960+
9961+
9962+ SB1699 Enrolled - 277 - LRB103 27684 AMQ 54061 b
9963+
9964+
9965+SB1699 Enrolled- 278 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 278 - LRB103 27684 AMQ 54061 b
9966+ SB1699 Enrolled - 278 - LRB103 27684 AMQ 54061 b
9967+1 part, by a public utility as defined in Section
9968+2 3-105 of the Public Utilities Act;
9969+3 (6) the electric generating facility at the
9970+4 site is not owned by (i) an electric cooperative
9971+5 as defined in Section 3-119 of the Public
9972+6 Utilities Act, or (ii) an entity described in
9973+7 subsection (b)(1) of Section 3-105 of the Public
9974+8 Utilities Act, or an association or consortium of
9975+9 or an entity owned by entities described in items
9976+10 (i) or (ii);
9977+11 (7) the proposed energy storage facility at
9978+12 the site will have energy storage capacity of at
9979+13 least 37 megawatts;
9980+14 (8) the owner commits to place the energy
9981+15 storage facility into commercial operation on
9982+16 either June 1, 2023, June 1, 2024, or June 1, 2025,
9983+17 with such date subject to adjustment as needed due
9984+18 to any delays in completing the grant contracting
9985+19 process, in finalizing interconnection agreements
9986+20 and in installing interconnection facilities, and
9987+21 in obtaining necessary governmental permits and
9988+22 approvals;
9989+23 (9) the owner agrees that the new energy
9990+24 storage facility will be constructed or installed
9991+25 by a qualified entity or entities consistent with
9992+26 the requirements of subsection (g) of Section
9993+
9994+
9995+
9996+
9997+
9998+ SB1699 Enrolled - 278 - LRB103 27684 AMQ 54061 b
9999+
10000+
10001+SB1699 Enrolled- 279 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 279 - LRB103 27684 AMQ 54061 b
10002+ SB1699 Enrolled - 279 - LRB103 27684 AMQ 54061 b
10003+1 16-128A of the Public Utilities Act and any rules
10004+2 adopted under that Section;
10005+3 (10) the owner agrees that personnel operating
10006+4 the energy storage facility will have the
10007+5 requisite skills, knowledge, training, experience,
10008+6 and competence, which may be demonstrated by
10009+7 completion or current participation and ultimate
10010+8 completion by employees of an accredited or
10011+9 otherwise recognized apprenticeship program for
10012+10 the employee's particular craft, trade, or skill,
10013+11 including through training and education courses
10014+12 and opportunities offered by the owner to
10015+13 employees of the coal-fueled electric generating
10016+14 facility or by previous employment experience
10017+15 performing the employee's particular work skill or
10018+16 function;
10019+17 (11) the owner commits that not less than the
10020+18 prevailing wage, as determined pursuant to the
10021+19 Prevailing Wage Act, will be paid to the owner's
10022+20 employees engaged in construction activities
10023+21 associated with the new energy storage facility
10024+22 and to the employees of the owner's contractors
10025+23 engaged in construction activities associated with
10026+24 the new energy storage facility, and that, on or
10027+25 before the commercial operation date of the new
10028+26 energy storage facility, the owner shall file a
10029+
10030+
10031+
10032+
10033+
10034+ SB1699 Enrolled - 279 - LRB103 27684 AMQ 54061 b
10035+
10036+
10037+SB1699 Enrolled- 280 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 280 - LRB103 27684 AMQ 54061 b
10038+ SB1699 Enrolled - 280 - LRB103 27684 AMQ 54061 b
10039+1 report with the Department certifying that the
10040+2 requirements of this subparagraph (11) have been
10041+3 met; and
10042+4 (12) the owner commits that if selected to
10043+5 receive a grant, it will negotiate a project labor
10044+6 agreement for the construction of the new energy
10045+7 storage facility that includes provisions
10046+8 requiring the parties to the agreement to work
10047+9 together to establish diversity threshold
10048+10 requirements and to ensure best efforts to meet
10049+11 diversity targets, improve diversity at the
10050+12 applicable job site, create diverse apprenticeship
10051+13 opportunities, and create opportunities to employ
10052+14 former coal-fired power plant workers.
10053+15 The Department shall accept applications for this
10054+16 grant program until March 31, 2022 and shall announce
10055+17 the award of grants no later than June 1, 2022. The
10056+18 Department shall make the grant payments to a
10057+19 recipient in equal annual amounts for 10 years
10058+20 following the date the energy storage facility is
10059+21 placed into commercial operation. The annual grant
10060+22 payments to a qualifying energy storage facility shall
10061+23 be $110,000 per megawatt of energy storage capacity,
10062+24 with total annual grant payments pursuant to this
10063+25 subparagraph (C) for qualifying energy storage
10064+26 facilities not to exceed $28,050,000 in any year.
10065+
10066+
10067+
10068+
10069+
10070+ SB1699 Enrolled - 280 - LRB103 27684 AMQ 54061 b
10071+
10072+
10073+SB1699 Enrolled- 281 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 281 - LRB103 27684 AMQ 54061 b
10074+ SB1699 Enrolled - 281 - LRB103 27684 AMQ 54061 b
10075+1 (D) Grants of funding for energy storage
10076+2 facilities pursuant to subparagraph (C) of this
10077+3 paragraph (10), from the Coal to Solar and Energy
10078+4 Storage Initiative Fund, shall be memorialized in
10079+5 grant contracts between the Department and the
10080+6 recipient. The grant contracts shall specify the date
10081+7 or dates in each year on which the annual grant
10082+8 payments shall be paid.
10083+9 (E) All disbursements from the Coal to Solar and
10084+10 Energy Storage Initiative Fund shall be made only upon
10085+11 warrants of the Comptroller drawn upon the Treasurer
10086+12 as custodian of the Fund upon vouchers signed by the
10087+13 Director of the Department or by the person or persons
10088+14 designated by the Director of the Department for that
10089+15 purpose. The Comptroller is authorized to draw the
10090+16 warrants upon vouchers so signed. The Treasurer shall
10091+17 accept all written warrants so signed and shall be
10092+18 released from liability for all payments made on those
10093+19 warrants.
10094+20 (11) Diversity, equity, and inclusion plans.
10095+21 (A) Each applicant selected in a procurement event
10096+22 to contract to supply renewable energy credits in
10097+23 accordance with this subsection (c-5) and each owner
10098+24 selected by the Department to receive a grant or
10099+25 grants to support the construction and operation of a
10100+26 new energy storage facility or facilities in
10101+
10102+
10103+
10104+
10105+
10106+ SB1699 Enrolled - 281 - LRB103 27684 AMQ 54061 b
10107+
10108+
10109+SB1699 Enrolled- 282 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 282 - LRB103 27684 AMQ 54061 b
10110+ SB1699 Enrolled - 282 - LRB103 27684 AMQ 54061 b
10111+1 accordance with this subsection (c-5) shall, within 60
10112+2 days following the Commission's approval of the
10113+3 applicant to contract to supply renewable energy
10114+4 credits or within 60 days following execution of a
10115+5 grant contract with the Department, as applicable,
10116+6 submit to the Commission a diversity, equity, and
10117+7 inclusion plan setting forth the applicant's or
10118+8 owner's numeric goals for the diversity composition of
10119+9 its supplier entities for the new renewable energy
10120+10 facility or new energy storage facility, as
10121+11 applicable, which shall be referred to for purposes of
10122+12 this paragraph (11) as the project, and the
10123+13 applicant's or owner's action plan and schedule for
10124+14 achieving those goals.
10125+15 (B) For purposes of this paragraph (11), diversity
10126+16 composition shall be based on the percentage, which
10127+17 shall be a minimum of 25%, of eligible expenditures
10128+18 for contract awards for materials and services (which
10129+19 shall be defined in the plan) to business enterprises
10130+20 owned by minority persons, women, or persons with
10131+21 disabilities as defined in Section 2 of the Business
10132+22 Enterprise for Minorities, Women, and Persons with
10133+23 Disabilities Act, to LGBTQ business enterprises, to
10134+24 veteran-owned business enterprises, and to business
10135+25 enterprises located in environmental justice
10136+26 communities. The diversity composition goals of the
10137+
10138+
10139+
10140+
10141+
10142+ SB1699 Enrolled - 282 - LRB103 27684 AMQ 54061 b
10143+
10144+
10145+SB1699 Enrolled- 283 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 283 - LRB103 27684 AMQ 54061 b
10146+ SB1699 Enrolled - 283 - LRB103 27684 AMQ 54061 b
10147+1 plan may include eligible expenditures in areas for
10148+2 vendor or supplier opportunities in addition to
10149+3 development and construction of the project, and may
10150+4 exclude from eligible expenditures materials and
10151+5 services with limited market availability, limited
10152+6 production and availability from suppliers in the
10153+7 United States, such as solar panels and storage
10154+8 batteries, and material and services that are subject
10155+9 to critical energy infrastructure or cybersecurity
10156+10 requirements or restrictions. The plan may provide
10157+11 that the diversity composition goals may be met
10158+12 through Tier 1 Direct or Tier 2 subcontracting
10159+13 expenditures or a combination thereof for the project.
10160+14 (C) The plan shall provide for, but not be limited
10161+15 to: (i) internal initiatives, including multi-tier
10162+16 initiatives, by the applicant or owner, or by its
10163+17 engineering, procurement and construction contractor
10164+18 if one is used for the project, which for purposes of
10165+19 this paragraph (11) shall be referred to as the EPC
10166+20 contractor, to enable diverse businesses to be
10167+21 considered fairly for selection to provide materials
10168+22 and services; (ii) requirements for the applicant or
10169+23 owner or its EPC contractor to proactively solicit and
10170+24 utilize diverse businesses to provide materials and
10171+25 services; and (iii) requirements for the applicant or
10172+26 owner or its EPC contractor to hire a diverse
10173+
10174+
10175+
10176+
10177+
10178+ SB1699 Enrolled - 283 - LRB103 27684 AMQ 54061 b
10179+
10180+
10181+SB1699 Enrolled- 284 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 284 - LRB103 27684 AMQ 54061 b
10182+ SB1699 Enrolled - 284 - LRB103 27684 AMQ 54061 b
10183+1 workforce for the project. The plan shall include a
10184+2 description of the applicant's or owner's diversity
10185+3 recruiting efforts both for the project and for other
10186+4 areas of the applicant's or owner's business
10187+5 operations. The plan shall provide for the imposition
10188+6 of financial penalties on the applicant's or owner's
10189+7 EPC contractor for failure to exercise best efforts to
10190+8 comply with and execute the EPC contractor's diversity
10191+9 obligations under the plan. The plan may provide for
10192+10 the applicant or owner to set aside a portion of the
10193+11 work on the project to serve as an incubation program
10194+12 for qualified businesses, as specified in the plan,
10195+13 owned by minority persons, women, persons with
10196+14 disabilities, LGBTQ persons, and veterans, and
10197+15 businesses located in environmental justice
10198+16 communities, seeking to enter the renewable energy
10199+17 industry.
10200+18 (D) The applicant or owner may submit a revised or
10201+19 updated plan to the Commission from time to time as
10202+20 circumstances warrant. The applicant or owner shall
10203+21 file annual reports with the Commission detailing the
10204+22 applicant's or owner's progress in implementing its
10205+23 plan and achieving its goals and any modifications the
10206+24 applicant or owner has made to its plan to better
10207+25 achieve its diversity, equity and inclusion goals. The
10208+26 applicant or owner shall file a final report on the
10209+
10210+
10211+
10212+
10213+
10214+ SB1699 Enrolled - 284 - LRB103 27684 AMQ 54061 b
10215+
10216+
10217+SB1699 Enrolled- 285 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 285 - LRB103 27684 AMQ 54061 b
10218+ SB1699 Enrolled - 285 - LRB103 27684 AMQ 54061 b
10219+1 fifth June 1 following the commercial operation date
10220+2 of the new renewable energy resource or new energy
10221+3 storage facility, but the applicant or owner shall
10222+4 thereafter continue to be subject to applicable
10223+5 reporting requirements of Section 5-117 of the Public
10224+6 Utilities Act.
10225+7 (c-10) Equity accountability system. It is the purpose of
10226+8 this subsection (c-10) to create an equity accountability
10227+9 system, which includes the minimum equity standards for all
10228+10 renewable energy procurements, the equity category of the
10229+11 Adjustable Block Program, and the equity prioritization for
10230+12 noncompetitive procurements, that is successful in advancing
10231+13 priority access to the clean energy economy for businesses and
10232+14 workers from communities that have been excluded from economic
10233+15 opportunities in the energy sector, have been subject to
10234+16 disproportionate levels of pollution, and have
10235+17 disproportionately experienced negative public health
10236+18 outcomes. Further, it is the purpose of this subsection to
10237+19 ensure that this equity accountability system is successful in
10238+20 advancing equity across Illinois by providing access to the
10239+21 clean energy economy for businesses and workers from
10240+22 communities that have been historically excluded from economic
10241+23 opportunities in the energy sector, have been subject to
10242+24 disproportionate levels of pollution, and have
10243+25 disproportionately experienced negative public health
10244+26 outcomes.
10245+
10246+
10247+
10248+
10249+
10250+ SB1699 Enrolled - 285 - LRB103 27684 AMQ 54061 b
10251+
10252+
10253+SB1699 Enrolled- 286 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 286 - LRB103 27684 AMQ 54061 b
10254+ SB1699 Enrolled - 286 - LRB103 27684 AMQ 54061 b
10255+1 (1) Minimum equity standards. The Agency shall create
10256+2 programs with the purpose of increasing access to and
10257+3 development of equity eligible contractors, who are prime
10258+4 contractors and subcontractors, across all of the programs
10259+5 it manages. All applications for renewable energy credit
10260+6 procurements shall comply with specific minimum equity
10261+7 commitments. Starting in the delivery year immediately
10262+8 following the next long-term renewable resources
10263+9 procurement plan, at least 10% of the project workforce
10264+10 for each entity participating in a procurement program
10265+11 outlined in this subsection (c-10) must be done by equity
10266+12 eligible persons or equity eligible contractors. The
10267+13 Agency shall increase the minimum percentage each delivery
10268+14 year thereafter by increments that ensure a statewide
10269+15 average of 30% of the project workforce for each entity
10270+16 participating in a procurement program is done by equity
10271+17 eligible persons or equity eligible contractors by 2030.
10272+18 The Agency shall propose a schedule of percentage
10273+19 increases to the minimum equity standards in its draft
10274+20 revised renewable energy resources procurement plan
10275+21 submitted to the Commission for approval pursuant to
10276+22 paragraph (5) of subsection (b) of Section 16-111.5 of the
10277+23 Public Utilities Act. In determining these annual
10278+24 increases, the Agency shall have the discretion to
10279+25 establish different minimum equity standards for different
10280+26 types of procurements and different regions of the State
10281+
10282+
10283+
10284+
10285+
10286+ SB1699 Enrolled - 286 - LRB103 27684 AMQ 54061 b
10287+
10288+
10289+SB1699 Enrolled- 287 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 287 - LRB103 27684 AMQ 54061 b
10290+ SB1699 Enrolled - 287 - LRB103 27684 AMQ 54061 b
10291+1 if the Agency finds that doing so will further the
10292+2 purposes of this subsection (c-10). The proposed schedule
10293+3 of annual increases shall be revisited and updated on an
10294+4 annual basis. Revisions shall be developed with
10295+5 stakeholder input, including from equity eligible persons,
10296+6 equity eligible contractors, clean energy industry
10297+7 representatives, and community-based organizations that
10298+8 work with such persons and contractors.
10299+9 (A) At the start of each delivery year, the Agency
10300+10 shall require a compliance plan from each entity
10301+11 participating in a procurement program of subsection
10302+12 (c) of this Section that demonstrates how they will
10303+13 achieve compliance with the minimum equity standard
10304+14 percentage for work completed in that delivery year.
10305+15 If an entity applies for its approved vendor or
10306+16 designee status between delivery years, the Agency
10307+17 shall require a compliance plan at the time of
10308+18 application.
10309+19 (B) Halfway through each delivery year, the Agency
10310+20 shall require each entity participating in a
10311+21 procurement program to confirm that it will achieve
10312+22 compliance in that delivery year, when applicable. The
10313+23 Agency may offer corrective action plans to entities
10314+24 that are not on track to achieve compliance.
10315+25 (C) At the end of each delivery year, each entity
10316+26 participating and completing work in that delivery
10317+
10318+
10319+
10320+
10321+
10322+ SB1699 Enrolled - 287 - LRB103 27684 AMQ 54061 b
10323+
10324+
10325+SB1699 Enrolled- 288 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 288 - LRB103 27684 AMQ 54061 b
10326+ SB1699 Enrolled - 288 - LRB103 27684 AMQ 54061 b
10327+1 year in a procurement program of subsection (c) shall
10328+2 submit a report to the Agency that demonstrates how it
10329+3 achieved compliance with the minimum equity standards
10330+4 percentage for that delivery year.
10331+5 (D) The Agency shall prohibit participation in
10332+6 procurement programs by an approved vendor or
10333+7 designee, as applicable, or entities with which an
10334+8 approved vendor or designee, as applicable, shares a
10335+9 common parent company if an approved vendor or
10336+10 designee, as applicable, failed to meet the minimum
10337+11 equity standards for the prior delivery year. Waivers
10338+12 approved for lack of equity eligible persons or equity
10339+13 eligible contractors in a geographic area of a project
10340+14 shall not count against the approved vendor or
10341+15 designee. The Agency shall offer a corrective action
10342+16 plan for any such entities to assist them in obtaining
10343+17 compliance and shall allow continued access to
10344+18 procurement programs upon an approved vendor or
10345+19 designee demonstrating compliance.
10346+20 (E) The Agency shall pursue efficiencies achieved
10347+21 by combining with other approved vendor or designee
10348+22 reporting.
10349+23 (2) Equity accountability system within the Adjustable
10350+24 Block program. The equity category described in item (vi)
10351+25 of subparagraph (K) of subsection (c) is only available to
10352+26 applicants that are equity eligible contractors.
10353+
10354+
10355+
10356+
10357+
10358+ SB1699 Enrolled - 288 - LRB103 27684 AMQ 54061 b
10359+
10360+
10361+SB1699 Enrolled- 289 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 289 - LRB103 27684 AMQ 54061 b
10362+ SB1699 Enrolled - 289 - LRB103 27684 AMQ 54061 b
10363+1 (3) Equity accountability system within competitive
10364+2 procurements. Through its long-term renewable resources
10365+3 procurement plan, the Agency shall develop requirements
10366+4 for ensuring that competitive procurement processes,
10367+5 including utility-scale solar, utility-scale wind, and
10368+6 brownfield site photovoltaic projects, advance the equity
10369+7 goals of this subsection (c-10). Subject to Commission
10370+8 approval, the Agency shall develop bid application
10371+9 requirements and a bid evaluation methodology for ensuring
10372+10 that utilization of equity eligible contractors, whether
10373+11 as bidders or as participants on project development, is
10374+12 optimized, including requiring that winning or successful
10375+13 applicants for utility-scale projects are or will partner
10376+14 with equity eligible contractors and giving preference to
10377+15 bids through which a higher portion of contract value
10378+16 flows to equity eligible contractors. To the extent
10379+17 practicable, entities participating in competitive
10380+18 procurements shall also be required to meet all the equity
10381+19 accountability requirements for approved vendors and their
10382+20 designees under this subsection (c-10). In developing
10383+21 these requirements, the Agency shall also consider whether
10384+22 equity goals can be further advanced through additional
10385+23 measures.
10386+24 (4) In the first revision to the long-term renewable
10387+25 energy resources procurement plan and each revision
10388+26 thereafter, the Agency shall include the following:
10389+
10390+
10391+
10392+
10393+
10394+ SB1699 Enrolled - 289 - LRB103 27684 AMQ 54061 b
10395+
10396+
10397+SB1699 Enrolled- 290 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 290 - LRB103 27684 AMQ 54061 b
10398+ SB1699 Enrolled - 290 - LRB103 27684 AMQ 54061 b
10399+1 (A) The current status and number of equity
10400+2 eligible contractors listed in the Energy Workforce
10401+3 Equity Database designed in subsection (c-25),
10402+4 including the number of equity eligible contractors
10403+5 with current certifications as issued by the Agency.
10404+6 (B) A mechanism for measuring, tracking, and
10405+7 reporting project workforce at the approved vendor or
10406+8 designee level, as applicable, which shall include a
10407+9 measurement methodology and records to be made
10408+10 available for audit by the Agency or the Program
10409+11 Administrator.
10410+12 (C) A program for approved vendors, designees,
10411+13 eligible persons, and equity eligible contractors to
10412+14 receive trainings, guidance, and other support from
10413+15 the Agency or its designee regarding the equity
10414+16 category outlined in item (vi) of subparagraph (K) of
10415+17 paragraph (1) of subsection (c) and in meeting the
10416+18 minimum equity standards of this subsection (c-10).
10417+19 (D) A process for certifying equity eligible
10418+20 contractors and equity eligible persons. The
10419+21 certification process shall coordinate with the Energy
10420+22 Workforce Equity Database set forth in subsection
10421+23 (c-25).
10422+24 (E) An application for waiver of the minimum
10423+25 equity standards of this subsection, which the Agency
10424+26 shall have the discretion to grant in rare
10425+
10426+
10427+
10428+
10429+
10430+ SB1699 Enrolled - 290 - LRB103 27684 AMQ 54061 b
10431+
10432+
10433+SB1699 Enrolled- 291 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 291 - LRB103 27684 AMQ 54061 b
10434+ SB1699 Enrolled - 291 - LRB103 27684 AMQ 54061 b
10435+1 circumstances. The Agency may grant such a waiver
10436+2 where the applicant provides evidence of significant
10437+3 efforts toward meeting the minimum equity commitment,
10438+4 including: use of the Energy Workforce Equity
10439+5 Database; efforts to hire or contract with entities
10440+6 that hire eligible persons; and efforts to establish
10441+7 contracting relationships with eligible contractors.
10442+8 The Agency shall support applicants in understanding
10443+9 the Energy Workforce Equity Database and other
10444+10 resources for pursuing compliance of the minimum
10445+11 equity standards. Waivers shall be project-specific,
10446+12 unless the Agency deems it necessary to grant a waiver
10447+13 across a portfolio of projects, and in effect for no
10448+14 longer than one year. Any waiver extension or
10449+15 subsequent waiver request from an applicant shall be
10450+16 subject to the requirements of this Section and shall
10451+17 specify efforts made to reach compliance. When
10452+18 considering whether to grant a waiver, and to what
10453+19 extent, the Agency shall consider the degree to which
10454+20 similarly situated applicants have been able to meet
10455+21 these minimum equity commitments. For repeated waiver
10456+22 requests for specific lack of eligible persons or
10457+23 eligible contractors available, the Agency shall make
10458+24 recommendations to target recruitment to add such
10459+25 eligible persons or eligible contractors to the
10460+26 database.
10461+
10462+
10463+
10464+
10465+
10466+ SB1699 Enrolled - 291 - LRB103 27684 AMQ 54061 b
10467+
10468+
10469+SB1699 Enrolled- 292 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 292 - LRB103 27684 AMQ 54061 b
10470+ SB1699 Enrolled - 292 - LRB103 27684 AMQ 54061 b
10471+1 (5) The Agency shall collect information about work on
10472+2 projects or portfolios of projects subject to these
10473+3 minimum equity standards to ensure compliance with this
10474+4 subsection (c-10). Reporting in furtherance of this
10475+5 requirement may be combined with other annual reporting
10476+6 requirements. Such reporting shall include proof of
10477+7 certification of each equity eligible contractor or equity
10478+8 eligible person during the applicable time period.
10479+9 (6) The Agency shall keep confidential all information
10480+10 and communication that provides private or personal
10481+11 information.
10482+12 (7) Modifications to the equity accountability system.
10483+13 As part of the update of the long-term renewable resources
10484+14 procurement plan to be initiated in 2023, or sooner if the
10485+15 Agency deems necessary, the Agency shall determine the
10486+16 extent to which the equity accountability system described
10487+17 in this subsection (c-10) has advanced the goals of this
10488+18 amendatory Act of the 102nd General Assembly, including
10489+19 through the inclusion of equity eligible persons and
10490+20 equity eligible contractors in renewable energy credit
10491+21 projects. If the Agency finds that the equity
10492+22 accountability system has failed to meet those goals to
10493+23 its fullest potential, the Agency may revise the following
10494+24 criteria for future Agency procurements: (A) the
10495+25 percentage of project workforce, or other appropriate
10496+26 workforce measure, certified as equity eligible persons or
10497+
10498+
10499+
10500+
10501+
10502+ SB1699 Enrolled - 292 - LRB103 27684 AMQ 54061 b
10503+
10504+
10505+SB1699 Enrolled- 293 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 293 - LRB103 27684 AMQ 54061 b
10506+ SB1699 Enrolled - 293 - LRB103 27684 AMQ 54061 b
10507+1 equity eligible contractors; (B) definitions for equity
10508+2 investment eligible persons and equity investment eligible
10509+3 community; and (C) such other modifications necessary to
10510+4 advance the goals of this amendatory Act of the 102nd
10511+5 General Assembly effectively. Such revised criteria may
10512+6 also establish distinct equity accountability systems for
10513+7 different types of procurements or different regions of
10514+8 the State if the Agency finds that doing so will further
10515+9 the purposes of such programs. Revisions shall be
10516+10 developed with stakeholder input, including from equity
10517+11 eligible persons, equity eligible contractors, and
10518+12 community-based organizations that work with such persons
10519+13 and contractors.
10520+14 (c-15) Racial discrimination elimination powers and
10521+15 process.
10522+16 (1) Purpose. It is the purpose of this subsection to
10523+17 empower the Agency and other State actors to remedy racial
10524+18 discrimination in Illinois' clean energy economy as
10525+19 effectively and expediently as possible, including through
10526+20 the use of race-conscious remedies, such as race-conscious
10527+21 contracting and hiring goals, as consistent with State and
10528+22 federal law.
10529+23 (2) Racial disparity and discrimination review
10530+24 process.
10531+25 (A) Within one year after awarding contracts using
10532+26 the equity actions processes established in this
10533+
10534+
10535+
10536+
10537+
10538+ SB1699 Enrolled - 293 - LRB103 27684 AMQ 54061 b
10539+
10540+
10541+SB1699 Enrolled- 294 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 294 - LRB103 27684 AMQ 54061 b
10542+ SB1699 Enrolled - 294 - LRB103 27684 AMQ 54061 b
10543+1 Section, the Agency shall publish a report evaluating
10544+2 the effectiveness of the equity actions point criteria
10545+3 of this Section in increasing participation of equity
10546+4 eligible persons and equity eligible contractors. The
10547+5 report shall disaggregate participating workers and
10548+6 contractors by race and ethnicity. The report shall be
10549+7 forwarded to the Governor, the General Assembly, and
10550+8 the Illinois Commerce Commission and be made available
10551+9 to the public.
10552+10 (B) As soon as is practicable thereafter, the
10553+11 Agency, in consultation with the Department of
10554+12 Commerce and Economic Opportunity, Department of
10555+13 Labor, and other agencies that may be relevant, shall
10556+14 commission and publish a disparity and availability
10557+15 study that measures the presence and impact of
10558+16 discrimination on minority businesses and workers in
10559+17 Illinois' clean energy economy. The Agency may hire
10560+18 consultants and experts to conduct the disparity and
10561+19 availability study, with the retention of those
10562+20 consultants and experts exempt from the requirements
10563+21 of Section 20-10 of the Illinois Procurement Code. The
10564+22 Illinois Power Agency shall forward a copy of its
10565+23 findings and recommendations to the Governor, the
10566+24 General Assembly, and the Illinois Commerce
10567+25 Commission. If the disparity and availability study
10568+26 establishes a strong basis in evidence that there is
10569+
10570+
10571+
10572+
10573+
10574+ SB1699 Enrolled - 294 - LRB103 27684 AMQ 54061 b
10575+
10576+
10577+SB1699 Enrolled- 295 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 295 - LRB103 27684 AMQ 54061 b
10578+ SB1699 Enrolled - 295 - LRB103 27684 AMQ 54061 b
10579+1 discrimination in Illinois' clean energy economy, the
10580+2 Agency, Department of Commerce and Economic
10581+3 Opportunity, Department of Labor, Department of
10582+4 Corrections, and other appropriate agencies shall take
10583+5 appropriate remedial actions, including race-conscious
10584+6 remedial actions as consistent with State and federal
10585+7 law, to effectively remedy this discrimination. Such
10586+8 remedies may include modification of the equity
10587+9 accountability system as described in subsection
10588+10 (c-10).
10589+11 (c-20) Program data collection.
10590+12 (1) Purpose. Data collection, data analysis, and
10591+13 reporting are critical to ensure that the benefits of the
10592+14 clean energy economy provided to Illinois residents and
10593+15 businesses are equitably distributed across the State. The
10594+16 Agency shall collect data from program applicants in order
10595+17 to track and improve equitable distribution of benefits
10596+18 across Illinois communities for all procurements the
10597+19 Agency conducts. The Agency shall use this data to, among
10598+20 other things, measure any potential impact of racial
10599+21 discrimination on the distribution of benefits and provide
10600+22 information necessary to correct any discrimination
10601+23 through methods consistent with State and federal law.
10602+24 (2) Agency collection of program data. The Agency
10603+25 shall collect demographic and geographic data for each
10604+26 entity awarded contracts under any Agency-administered
10605+
10606+
10607+
10608+
10609+
10610+ SB1699 Enrolled - 295 - LRB103 27684 AMQ 54061 b
10611+
10612+
10613+SB1699 Enrolled- 296 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 296 - LRB103 27684 AMQ 54061 b
10614+ SB1699 Enrolled - 296 - LRB103 27684 AMQ 54061 b
10615+1 program.
10616+2 (3) Required information to be collected. The Agency
10617+3 shall collect the following information from applicants
10618+4 and program participants where applicable:
10619+5 (A) demographic information, including racial or
10620+6 ethnic identity for real persons employed, contracted,
10621+7 or subcontracted through the program and owners of
10622+8 businesses or entities that apply to receive renewable
10623+9 energy credits from the Agency;
10624+10 (B) geographic location of the residency of real
10625+11 persons employed, contracted, or subcontracted through
10626+12 the program and geographic location of the
10627+13 headquarters of the business or entity that applies to
10628+14 receive renewable energy credits from the Agency; and
10629+15 (C) any other information the Agency determines is
10630+16 necessary for the purpose of achieving the purpose of
10631+17 this subsection.
10632+18 (4) Publication of collected information. The Agency
10633+19 shall publish, at least annually, information on the
10634+20 demographics of program participants on an aggregate
10635+21 basis.
10636+22 (5) Nothing in this subsection shall be interpreted to
10637+23 limit the authority of the Agency, or other agency or
10638+24 department of the State, to require or collect demographic
10639+25 information from applicants of other State programs.
10640+26 (c-25) Energy Workforce Equity Database.
10641+
10642+
10643+
10644+
10645+
10646+ SB1699 Enrolled - 296 - LRB103 27684 AMQ 54061 b
10647+
10648+
10649+SB1699 Enrolled- 297 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 297 - LRB103 27684 AMQ 54061 b
10650+ SB1699 Enrolled - 297 - LRB103 27684 AMQ 54061 b
10651+1 (1) The Agency, in consultation with the Department of
10652+2 Commerce and Economic Opportunity, shall create an Energy
10653+3 Workforce Equity Database, and may contract with a third
10654+4 party to do so ("database program administrator"). If the
10655+5 Department decides to contract with a third party, that
10656+6 third party shall be exempt from the requirements of
10657+7 Section 20-10 of the Illinois Procurement Code. The Energy
10658+8 Workforce Equity Database shall be a searchable database
10659+9 of suppliers, vendors, and subcontractors for clean energy
10660+10 industries that is:
10661+11 (A) publicly accessible;
10662+12 (B) easy for people to find and use;
10663+13 (C) organized by company specialty or field;
10664+14 (D) region-specific; and
10665+15 (E) populated with information including, but not
10666+16 limited to, contacts for suppliers, vendors, or
10667+17 subcontractors who are minority and women-owned
10668+18 business enterprise certified or who participate or
10669+19 have participated in any of the programs described in
10670+20 this Act.
10671+21 (2) The Agency shall create an easily accessible,
10672+22 public facing online tool using the database information
10673+23 that includes, at a minimum, the following:
10674+24 (A) a map of environmental justice and equity
10675+25 investment eligible communities;
10676+26 (B) job postings and recruiting opportunities;
10677+
10678+
10679+
10680+
10681+
10682+ SB1699 Enrolled - 297 - LRB103 27684 AMQ 54061 b
10683+
10684+
10685+SB1699 Enrolled- 298 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 298 - LRB103 27684 AMQ 54061 b
10686+ SB1699 Enrolled - 298 - LRB103 27684 AMQ 54061 b
10687+1 (C) a means by which recruiting clean energy
10688+2 companies can find and interact with current or former
10689+3 participants of clean energy workforce training
10690+4 programs;
10691+5 (D) information on workforce training service
10692+6 providers and training opportunities available to
10693+7 prospective workers;
10694+8 (E) renewable energy company diversity reporting;
10695+9 (F) a list of equity eligible contractors with
10696+10 their contact information, types of work performed,
10697+11 and locations worked in;
10698+12 (G) reporting on outcomes of the programs
10699+13 described in the workforce programs of the Energy
10700+14 Transition Act, including information such as, but not
10701+15 limited to, retention rate, graduation rate, and
10702+16 placement rates of trainees; and
10703+17 (H) information about the Jobs and Environmental
10704+18 Justice Grant Program, the Clean Energy Jobs and
10705+19 Justice Fund, and other sources of capital.
10706+20 (3) The Agency shall ensure the database is regularly
10707+21 updated to ensure information is current and shall
10708+22 coordinate with the Department of Commerce and Economic
10709+23 Opportunity to ensure that it includes information on
10710+24 individuals and entities that are or have participated in
10711+25 the Clean Jobs Workforce Network Program, Clean Energy
10712+26 Contractor Incubator Program, Returning Residents Clean
10713+
10714+
10715+
10716+
10717+
10718+ SB1699 Enrolled - 298 - LRB103 27684 AMQ 54061 b
10719+
10720+
10721+SB1699 Enrolled- 299 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 299 - LRB103 27684 AMQ 54061 b
10722+ SB1699 Enrolled - 299 - LRB103 27684 AMQ 54061 b
10723+1 Jobs Training Program, or Clean Energy Primes Contractor
10724+2 Accelerator Program.
10725+3 (c-30) Enforcement of minimum equity standards. All
10726+4 entities seeking renewable energy credits must submit an
10727+5 annual report to demonstrate compliance with each of the
10728+6 equity commitments required under subsection (c-10). If the
10729+7 Agency concludes the entity has not met or maintained its
10730+8 minimum equity standards required under the applicable
10731+9 subparagraphs under subsection (c-10), the Agency shall deny
10732+10 the entity's ability to participate in procurement programs in
10733+11 subsection (c), including by withholding approved vendor or
10734+12 designee status. The Agency may require the entity to enter
10735+13 into a corrective action plan. An entity that is not
10736+14 recertified for failing to meet required equity actions in
10737+15 subparagraph (c-10) may reapply once they have a corrective
10738+16 action plan and achieve compliance with the minimum equity
10739+17 standards.
10740+18 (d) Clean coal portfolio standard.
10741+19 (1) The procurement plans shall include electricity
10742+20 generated using clean coal. Each utility shall enter into
10743+21 one or more sourcing agreements with the initial clean
10744+22 coal facility, as provided in paragraph (3) of this
10745+23 subsection (d), covering electricity generated by the
10746+24 initial clean coal facility representing at least 5% of
10747+25 each utility's total supply to serve the load of eligible
10748+26 retail customers in 2015 and each year thereafter, as
10749+
10750+
10751+
10752+
10753+
10754+ SB1699 Enrolled - 299 - LRB103 27684 AMQ 54061 b
10755+
10756+
10757+SB1699 Enrolled- 300 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 300 - LRB103 27684 AMQ 54061 b
10758+ SB1699 Enrolled - 300 - LRB103 27684 AMQ 54061 b
10759+1 described in paragraph (3) of this subsection (d), subject
10760+2 to the limits specified in paragraph (2) of this
10761+3 subsection (d). It is the goal of the State that by January
10762+4 1, 2025, 25% of the electricity used in the State shall be
10763+5 generated by cost-effective clean coal facilities. For
10764+6 purposes of this subsection (d), "cost-effective" means
10765+7 that the expenditures pursuant to such sourcing agreements
10766+8 do not cause the limit stated in paragraph (2) of this
10767+9 subsection (d) to be exceeded and do not exceed cost-based
10768+10 benchmarks, which shall be developed to assess all
10769+11 expenditures pursuant to such sourcing agreements covering
10770+12 electricity generated by clean coal facilities, other than
10771+13 the initial clean coal facility, by the procurement
10772+14 administrator, in consultation with the Commission staff,
10773+15 Agency staff, and the procurement monitor and shall be
10774+16 subject to Commission review and approval.
10775+17 A utility party to a sourcing agreement shall
10776+18 immediately retire any emission credits that it receives
10777+19 in connection with the electricity covered by such
10778+20 agreement.
10779+21 Utilities shall maintain adequate records documenting
10780+22 the purchases under the sourcing agreement to comply with
10781+23 this subsection (d) and shall file an accounting with the
10782+24 load forecast that must be filed with the Agency by July 15
10783+25 of each year, in accordance with subsection (d) of Section
10784+26 16-111.5 of the Public Utilities Act.
10785+
10786+
10787+
10788+
10789+
10790+ SB1699 Enrolled - 300 - LRB103 27684 AMQ 54061 b
10791+
10792+
10793+SB1699 Enrolled- 301 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 301 - LRB103 27684 AMQ 54061 b
10794+ SB1699 Enrolled - 301 - LRB103 27684 AMQ 54061 b
10795+1 A utility shall be deemed to have complied with the
10796+2 clean coal portfolio standard specified in this subsection
10797+3 (d) if the utility enters into a sourcing agreement as
10798+4 required by this subsection (d).
10799+5 (2) For purposes of this subsection (d), the required
10800+6 execution of sourcing agreements with the initial clean
10801+7 coal facility for a particular year shall be measured as a
10802+8 percentage of the actual amount of electricity
10803+9 (megawatt-hours) supplied by the electric utility to
10804+10 eligible retail customers in the planning year ending
10805+11 immediately prior to the agreement's execution. For
10806+12 purposes of this subsection (d), the amount paid per
10807+13 kilowatthour means the total amount paid for electric
10808+14 service expressed on a per kilowatthour basis. For
10809+15 purposes of this subsection (d), the total amount paid for
10810+16 electric service includes without limitation amounts paid
10811+17 for supply, transmission, distribution, surcharges and
10812+18 add-on taxes.
10813+19 Notwithstanding the requirements of this subsection
10814+20 (d), the total amount paid under sourcing agreements with
10815+21 clean coal facilities pursuant to the procurement plan for
10816+22 any given year shall be reduced by an amount necessary to
10817+23 limit the annual estimated average net increase due to the
10818+24 costs of these resources included in the amounts paid by
10819+25 eligible retail customers in connection with electric
10820+26 service to:
10821+
10822+
10823+
10824+
10825+
10826+ SB1699 Enrolled - 301 - LRB103 27684 AMQ 54061 b
10827+
10828+
10829+SB1699 Enrolled- 302 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 302 - LRB103 27684 AMQ 54061 b
10830+ SB1699 Enrolled - 302 - LRB103 27684 AMQ 54061 b
10831+1 (A) in 2010, no more than 0.5% of the amount paid
10832+2 per kilowatthour by those customers during the year
10833+3 ending May 31, 2009;
10834+4 (B) in 2011, the greater of an additional 0.5% of
10835+5 the amount paid per kilowatthour by those customers
10836+6 during the year ending May 31, 2010 or 1% of the amount
10837+7 paid per kilowatthour by those customers during the
10838+8 year ending May 31, 2009;
10839+9 (C) in 2012, the greater of an additional 0.5% of
10840+10 the amount paid per kilowatthour by those customers
10841+11 during the year ending May 31, 2011 or 1.5% of the
10842+12 amount paid per kilowatthour by those customers during
10843+13 the year ending May 31, 2009;
10844+14 (D) in 2013, the greater of an additional 0.5% of
10845+15 the amount paid per kilowatthour by those customers
10846+16 during the year ending May 31, 2012 or 2% of the amount
10847+17 paid per kilowatthour by those customers during the
10848+18 year ending May 31, 2009; and
10849+19 (E) thereafter, the total amount paid under
10850+20 sourcing agreements with clean coal facilities
10851+21 pursuant to the procurement plan for any single year
10852+22 shall be reduced by an amount necessary to limit the
10853+23 estimated average net increase due to the cost of
10854+24 these resources included in the amounts paid by
10855+25 eligible retail customers in connection with electric
10856+26 service to no more than the greater of (i) 2.015% of
10857+
10858+
10859+
10860+
10861+
10862+ SB1699 Enrolled - 302 - LRB103 27684 AMQ 54061 b
10863+
10864+
10865+SB1699 Enrolled- 303 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 303 - LRB103 27684 AMQ 54061 b
10866+ SB1699 Enrolled - 303 - LRB103 27684 AMQ 54061 b
10867+1 the amount paid per kilowatthour by those customers
10868+2 during the year ending May 31, 2009 or (ii) the
10869+3 incremental amount per kilowatthour paid for these
10870+4 resources in 2013. These requirements may be altered
10871+5 only as provided by statute.
10872+6 No later than June 30, 2015, the Commission shall
10873+7 review the limitation on the total amount paid under
10874+8 sourcing agreements, if any, with clean coal facilities
10875+9 pursuant to this subsection (d) and report to the General
10876+10 Assembly its findings as to whether that limitation unduly
10877+11 constrains the amount of electricity generated by
10878+12 cost-effective clean coal facilities that is covered by
10879+13 sourcing agreements.
10880+14 (3) Initial clean coal facility. In order to promote
10881+15 development of clean coal facilities in Illinois, each
10882+16 electric utility subject to this Section shall execute a
10883+17 sourcing agreement to source electricity from a proposed
10884+18 clean coal facility in Illinois (the "initial clean coal
10885+19 facility") that will have a nameplate capacity of at least
10886+20 500 MW when commercial operation commences, that has a
10887+21 final Clean Air Act permit on June 1, 2009 (the effective
10888+22 date of Public Act 95-1027), and that will meet the
10889+23 definition of clean coal facility in Section 1-10 of this
10890+24 Act when commercial operation commences. The sourcing
10891+25 agreements with this initial clean coal facility shall be
10892+26 subject to both approval of the initial clean coal
10893+
10894+
10895+
10896+
10897+
10898+ SB1699 Enrolled - 303 - LRB103 27684 AMQ 54061 b
10899+
10900+
10901+SB1699 Enrolled- 304 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 304 - LRB103 27684 AMQ 54061 b
10902+ SB1699 Enrolled - 304 - LRB103 27684 AMQ 54061 b
10903+1 facility by the General Assembly and satisfaction of the
10904+2 requirements of paragraph (4) of this subsection (d) and
10905+3 shall be executed within 90 days after any such approval
10906+4 by the General Assembly. The Agency and the Commission
10907+5 shall have authority to inspect all books and records
10908+6 associated with the initial clean coal facility during the
10909+7 term of such a sourcing agreement. A utility's sourcing
10910+8 agreement for electricity produced by the initial clean
10911+9 coal facility shall include:
10912+10 (A) a formula contractual price (the "contract
10913+11 price") approved pursuant to paragraph (4) of this
10914+12 subsection (d), which shall:
10915+13 (i) be determined using a cost of service
10916+14 methodology employing either a level or deferred
10917+15 capital recovery component, based on a capital
10918+16 structure consisting of 45% equity and 55% debt,
10919+17 and a return on equity as may be approved by the
10920+18 Federal Energy Regulatory Commission, which in any
10921+19 case may not exceed the lower of 11.5% or the rate
10922+20 of return approved by the General Assembly
10923+21 pursuant to paragraph (4) of this subsection (d);
10924+22 and
10925+23 (ii) provide that all miscellaneous net
10926+24 revenue, including but not limited to net revenue
10927+25 from the sale of emission allowances, if any,
10928+26 substitute natural gas, if any, grants or other
10929+
10930+
10931+
10932+
10933+
10934+ SB1699 Enrolled - 304 - LRB103 27684 AMQ 54061 b
10935+
10936+
10937+SB1699 Enrolled- 305 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 305 - LRB103 27684 AMQ 54061 b
10938+ SB1699 Enrolled - 305 - LRB103 27684 AMQ 54061 b
10939+1 support provided by the State of Illinois or the
10940+2 United States Government, firm transmission
10941+3 rights, if any, by-products produced by the
10942+4 facility, energy or capacity derived from the
10943+5 facility and not covered by a sourcing agreement
10944+6 pursuant to paragraph (3) of this subsection (d)
10945+7 or item (5) of subsection (d) of Section 16-115 of
10946+8 the Public Utilities Act, whether generated from
10947+9 the synthesis gas derived from coal, from SNG, or
10948+10 from natural gas, shall be credited against the
10949+11 revenue requirement for this initial clean coal
10950+12 facility;
10951+13 (B) power purchase provisions, which shall:
10952+14 (i) provide that the utility party to such
10953+15 sourcing agreement shall pay the contract price
10954+16 for electricity delivered under such sourcing
10955+17 agreement;
10956+18 (ii) require delivery of electricity to the
10957+19 regional transmission organization market of the
10958+20 utility that is party to such sourcing agreement;
10959+21 (iii) require the utility party to such
10960+22 sourcing agreement to buy from the initial clean
10961+23 coal facility in each hour an amount of energy
10962+24 equal to all clean coal energy made available from
10963+25 the initial clean coal facility during such hour
10964+26 times a fraction, the numerator of which is such
10965+
10966+
10967+
10968+
10969+
10970+ SB1699 Enrolled - 305 - LRB103 27684 AMQ 54061 b
10971+
10972+
10973+SB1699 Enrolled- 306 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 306 - LRB103 27684 AMQ 54061 b
10974+ SB1699 Enrolled - 306 - LRB103 27684 AMQ 54061 b
10975+1 utility's retail market sales of electricity
10976+2 (expressed in kilowatthours sold) in the State
10977+3 during the prior calendar month and the
10978+4 denominator of which is the total retail market
10979+5 sales of electricity (expressed in kilowatthours
10980+6 sold) in the State by utilities during such prior
10981+7 month and the sales of electricity (expressed in
10982+8 kilowatthours sold) in the State by alternative
10983+9 retail electric suppliers during such prior month
10984+10 that are subject to the requirements of this
10985+11 subsection (d) and paragraph (5) of subsection (d)
10986+12 of Section 16-115 of the Public Utilities Act,
10987+13 provided that the amount purchased by the utility
10988+14 in any year will be limited by paragraph (2) of
10989+15 this subsection (d); and
10990+16 (iv) be considered pre-existing contracts in
10991+17 such utility's procurement plans for eligible
10992+18 retail customers;
10993+19 (C) contract for differences provisions, which
10994+20 shall:
10995+21 (i) require the utility party to such sourcing
10996+22 agreement to contract with the initial clean coal
10997+23 facility in each hour with respect to an amount of
10998+24 energy equal to all clean coal energy made
10999+25 available from the initial clean coal facility
11000+26 during such hour times a fraction, the numerator
11001+
11002+
11003+
11004+
11005+
11006+ SB1699 Enrolled - 306 - LRB103 27684 AMQ 54061 b
11007+
11008+
11009+SB1699 Enrolled- 307 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 307 - LRB103 27684 AMQ 54061 b
11010+ SB1699 Enrolled - 307 - LRB103 27684 AMQ 54061 b
11011+1 of which is such utility's retail market sales of
11012+2 electricity (expressed in kilowatthours sold) in
11013+3 the utility's service territory in the State
11014+4 during the prior calendar month and the
11015+5 denominator of which is the total retail market
11016+6 sales of electricity (expressed in kilowatthours
11017+7 sold) in the State by utilities during such prior
11018+8 month and the sales of electricity (expressed in
11019+9 kilowatthours sold) in the State by alternative
11020+10 retail electric suppliers during such prior month
11021+11 that are subject to the requirements of this
11022+12 subsection (d) and paragraph (5) of subsection (d)
11023+13 of Section 16-115 of the Public Utilities Act,
11024+14 provided that the amount paid by the utility in
11025+15 any year will be limited by paragraph (2) of this
11026+16 subsection (d);
11027+17 (ii) provide that the utility's payment
11028+18 obligation in respect of the quantity of
11029+19 electricity determined pursuant to the preceding
11030+20 clause (i) shall be limited to an amount equal to
11031+21 (1) the difference between the contract price
11032+22 determined pursuant to subparagraph (A) of
11033+23 paragraph (3) of this subsection (d) and the
11034+24 day-ahead price for electricity delivered to the
11035+25 regional transmission organization market of the
11036+26 utility that is party to such sourcing agreement
11037+
11038+
11039+
11040+
11041+
11042+ SB1699 Enrolled - 307 - LRB103 27684 AMQ 54061 b
11043+
11044+
11045+SB1699 Enrolled- 308 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 308 - LRB103 27684 AMQ 54061 b
11046+ SB1699 Enrolled - 308 - LRB103 27684 AMQ 54061 b
11047+1 (or any successor delivery point at which such
11048+2 utility's supply obligations are financially
11049+3 settled on an hourly basis) (the "reference
11050+4 price") on the day preceding the day on which the
11051+5 electricity is delivered to the initial clean coal
11052+6 facility busbar, multiplied by (2) the quantity of
11053+7 electricity determined pursuant to the preceding
11054+8 clause (i); and
11055+9 (iii) not require the utility to take physical
11056+10 delivery of the electricity produced by the
11057+11 facility;
11058+12 (D) general provisions, which shall:
11059+13 (i) specify a term of no more than 30 years,
11060+14 commencing on the commercial operation date of the
11061+15 facility;
11062+16 (ii) provide that utilities shall maintain
11063+17 adequate records documenting purchases under the
11064+18 sourcing agreements entered into to comply with
11065+19 this subsection (d) and shall file an accounting
11066+20 with the load forecast that must be filed with the
11067+21 Agency by July 15 of each year, in accordance with
11068+22 subsection (d) of Section 16-111.5 of the Public
11069+23 Utilities Act;
11070+24 (iii) provide that all costs associated with
11071+25 the initial clean coal facility will be
11072+26 periodically reported to the Federal Energy
11073+
11074+
11075+
11076+
11077+
11078+ SB1699 Enrolled - 308 - LRB103 27684 AMQ 54061 b
11079+
11080+
11081+SB1699 Enrolled- 309 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 309 - LRB103 27684 AMQ 54061 b
11082+ SB1699 Enrolled - 309 - LRB103 27684 AMQ 54061 b
11083+1 Regulatory Commission and to purchasers in
11084+2 accordance with applicable laws governing
11085+3 cost-based wholesale power contracts;
11086+4 (iv) permit the Illinois Power Agency to
11087+5 assume ownership of the initial clean coal
11088+6 facility, without monetary consideration and
11089+7 otherwise on reasonable terms acceptable to the
11090+8 Agency, if the Agency so requests no less than 3
11091+9 years prior to the end of the stated contract
11092+10 term;
11093+11 (v) require the owner of the initial clean
11094+12 coal facility to provide documentation to the
11095+13 Commission each year, starting in the facility's
11096+14 first year of commercial operation, accurately
11097+15 reporting the quantity of carbon emissions from
11098+16 the facility that have been captured and
11099+17 sequestered and report any quantities of carbon
11100+18 released from the site or sites at which carbon
11101+19 emissions were sequestered in prior years, based
11102+20 on continuous monitoring of such sites. If, in any
11103+21 year after the first year of commercial operation,
11104+22 the owner of the facility fails to demonstrate
11105+23 that the initial clean coal facility captured and
11106+24 sequestered at least 50% of the total carbon
11107+25 emissions that the facility would otherwise emit
11108+26 or that sequestration of emissions from prior
11109+
11110+
11111+
11112+
11113+
11114+ SB1699 Enrolled - 309 - LRB103 27684 AMQ 54061 b
11115+
11116+
11117+SB1699 Enrolled- 310 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 310 - LRB103 27684 AMQ 54061 b
11118+ SB1699 Enrolled - 310 - LRB103 27684 AMQ 54061 b
11119+1 years has failed, resulting in the release of
11120+2 carbon dioxide into the atmosphere, the owner of
11121+3 the facility must offset excess emissions. Any
11122+4 such carbon offsets must be permanent, additional,
11123+5 verifiable, real, located within the State of
11124+6 Illinois, and legally and practicably enforceable.
11125+7 The cost of such offsets for the facility that are
11126+8 not recoverable shall not exceed $15 million in
11127+9 any given year. No costs of any such purchases of
11128+10 carbon offsets may be recovered from a utility or
11129+11 its customers. All carbon offsets purchased for
11130+12 this purpose and any carbon emission credits
11131+13 associated with sequestration of carbon from the
11132+14 facility must be permanently retired. The initial
11133+15 clean coal facility shall not forfeit its
11134+16 designation as a clean coal facility if the
11135+17 facility fails to fully comply with the applicable
11136+18 carbon sequestration requirements in any given
11137+19 year, provided the requisite offsets are
11138+20 purchased. However, the Attorney General, on
11139+21 behalf of the People of the State of Illinois, may
11140+22 specifically enforce the facility's sequestration
11141+23 requirement and the other terms of this contract
11142+24 provision. Compliance with the sequestration
11143+25 requirements and offset purchase requirements
11144+26 specified in paragraph (3) of this subsection (d)
11145+
11146+
11147+
11148+
11149+
11150+ SB1699 Enrolled - 310 - LRB103 27684 AMQ 54061 b
11151+
11152+
11153+SB1699 Enrolled- 311 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 311 - LRB103 27684 AMQ 54061 b
11154+ SB1699 Enrolled - 311 - LRB103 27684 AMQ 54061 b
11155+1 shall be reviewed annually by an independent
11156+2 expert retained by the owner of the initial clean
11157+3 coal facility, with the advance written approval
11158+4 of the Attorney General. The Commission may, in
11159+5 the course of the review specified in item (vii),
11160+6 reduce the allowable return on equity for the
11161+7 facility if the facility willfully fails to comply
11162+8 with the carbon capture and sequestration
11163+9 requirements set forth in this item (v);
11164+10 (vi) include limits on, and accordingly
11165+11 provide for modification of, the amount the
11166+12 utility is required to source under the sourcing
11167+13 agreement consistent with paragraph (2) of this
11168+14 subsection (d);
11169+15 (vii) require Commission review: (1) to
11170+16 determine the justness, reasonableness, and
11171+17 prudence of the inputs to the formula referenced
11172+18 in subparagraphs (A)(i) through (A)(iii) of
11173+19 paragraph (3) of this subsection (d), prior to an
11174+20 adjustment in those inputs including, without
11175+21 limitation, the capital structure and return on
11176+22 equity, fuel costs, and other operations and
11177+23 maintenance costs and (2) to approve the costs to
11178+24 be passed through to customers under the sourcing
11179+25 agreement by which the utility satisfies its
11180+26 statutory obligations. Commission review shall
11181+
11182+
11183+
11184+
11185+
11186+ SB1699 Enrolled - 311 - LRB103 27684 AMQ 54061 b
11187+
11188+
11189+SB1699 Enrolled- 312 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 312 - LRB103 27684 AMQ 54061 b
11190+ SB1699 Enrolled - 312 - LRB103 27684 AMQ 54061 b
11191+1 occur no less than every 3 years, regardless of
11192+2 whether any adjustments have been proposed, and
11193+3 shall be completed within 9 months;
11194+4 (viii) limit the utility's obligation to such
11195+5 amount as the utility is allowed to recover
11196+6 through tariffs filed with the Commission,
11197+7 provided that neither the clean coal facility nor
11198+8 the utility waives any right to assert federal
11199+9 pre-emption or any other argument in response to a
11200+10 purported disallowance of recovery costs;
11201+11 (ix) limit the utility's or alternative retail
11202+12 electric supplier's obligation to incur any
11203+13 liability until such time as the facility is in
11204+14 commercial operation and generating power and
11205+15 energy and such power and energy is being
11206+16 delivered to the facility busbar;
11207+17 (x) provide that the owner or owners of the
11208+18 initial clean coal facility, which is the
11209+19 counterparty to such sourcing agreement, shall
11210+20 have the right from time to time to elect whether
11211+21 the obligations of the utility party thereto shall
11212+22 be governed by the power purchase provisions or
11213+23 the contract for differences provisions;
11214+24 (xi) append documentation showing that the
11215+25 formula rate and contract, insofar as they relate
11216+26 to the power purchase provisions, have been
11217+
11218+
11219+
11220+
11221+
11222+ SB1699 Enrolled - 312 - LRB103 27684 AMQ 54061 b
11223+
11224+
11225+SB1699 Enrolled- 313 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 313 - LRB103 27684 AMQ 54061 b
11226+ SB1699 Enrolled - 313 - LRB103 27684 AMQ 54061 b
11227+1 approved by the Federal Energy Regulatory
11228+2 Commission pursuant to Section 205 of the Federal
11229+3 Power Act;
11230+4 (xii) provide that any changes to the terms of
11231+5 the contract, insofar as such changes relate to
11232+6 the power purchase provisions, are subject to
11233+7 review under the public interest standard applied
11234+8 by the Federal Energy Regulatory Commission
11235+9 pursuant to Sections 205 and 206 of the Federal
11236+10 Power Act; and
11237+11 (xiii) conform with customary lender
11238+12 requirements in power purchase agreements used as
11239+13 the basis for financing non-utility generators.
11240+14 (4) Effective date of sourcing agreements with the
11241+15 initial clean coal facility. Any proposed sourcing
11242+16 agreement with the initial clean coal facility shall not
11243+17 become effective unless the following reports are prepared
11244+18 and submitted and authorizations and approvals obtained:
11245+19 (i) Facility cost report. The owner of the initial
11246+20 clean coal facility shall submit to the Commission,
11247+21 the Agency, and the General Assembly a front-end
11248+22 engineering and design study, a facility cost report,
11249+23 method of financing (including but not limited to
11250+24 structure and associated costs), and an operating and
11251+25 maintenance cost quote for the facility (collectively
11252+26 "facility cost report"), which shall be prepared in
11253+
11254+
11255+
11256+
11257+
11258+ SB1699 Enrolled - 313 - LRB103 27684 AMQ 54061 b
11259+
11260+
11261+SB1699 Enrolled- 314 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 314 - LRB103 27684 AMQ 54061 b
11262+ SB1699 Enrolled - 314 - LRB103 27684 AMQ 54061 b
11263+1 accordance with the requirements of this paragraph (4)
11264+2 of subsection (d) of this Section, and shall provide
11265+3 the Commission and the Agency access to the work
11266+4 papers, relied upon documents, and any other backup
11267+5 documentation related to the facility cost report.
11268+6 (ii) Commission report. Within 6 months following
11269+7 receipt of the facility cost report, the Commission,
11270+8 in consultation with the Agency, shall submit a report
11271+9 to the General Assembly setting forth its analysis of
11272+10 the facility cost report. Such report shall include,
11273+11 but not be limited to, a comparison of the costs
11274+12 associated with electricity generated by the initial
11275+13 clean coal facility to the costs associated with
11276+14 electricity generated by other types of generation
11277+15 facilities, an analysis of the rate impacts on
11278+16 residential and small business customers over the life
11279+17 of the sourcing agreements, and an analysis of the
11280+18 likelihood that the initial clean coal facility will
11281+19 commence commercial operation by and be delivering
11282+20 power to the facility's busbar by 2016. To assist in
11283+21 the preparation of its report, the Commission, in
11284+22 consultation with the Agency, may hire one or more
11285+23 experts or consultants, the costs of which shall be
11286+24 paid for by the owner of the initial clean coal
11287+25 facility. The Commission and Agency may begin the
11288+26 process of selecting such experts or consultants prior
11289+
11290+
11291+
11292+
11293+
11294+ SB1699 Enrolled - 314 - LRB103 27684 AMQ 54061 b
11295+
11296+
11297+SB1699 Enrolled- 315 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 315 - LRB103 27684 AMQ 54061 b
11298+ SB1699 Enrolled - 315 - LRB103 27684 AMQ 54061 b
11299+1 to receipt of the facility cost report.
11300+2 (iii) General Assembly approval. The proposed
11301+3 sourcing agreements shall not take effect unless,
11302+4 based on the facility cost report and the Commission's
11303+5 report, the General Assembly enacts authorizing
11304+6 legislation approving (A) the projected price, stated
11305+7 in cents per kilowatthour, to be charged for
11306+8 electricity generated by the initial clean coal
11307+9 facility, (B) the projected impact on residential and
11308+10 small business customers' bills over the life of the
11309+11 sourcing agreements, and (C) the maximum allowable
11310+12 return on equity for the project; and
11311+13 (iv) Commission review. If the General Assembly
11312+14 enacts authorizing legislation pursuant to
11313+15 subparagraph (iii) approving a sourcing agreement, the
11314+16 Commission shall, within 90 days of such enactment,
11315+17 complete a review of such sourcing agreement. During
11316+18 such time period, the Commission shall implement any
11317+19 directive of the General Assembly, resolve any
11318+20 disputes between the parties to the sourcing agreement
11319+21 concerning the terms of such agreement, approve the
11320+22 form of such agreement, and issue an order finding
11321+23 that the sourcing agreement is prudent and reasonable.
11322+24 The facility cost report shall be prepared as follows:
11323+25 (A) The facility cost report shall be prepared by
11324+26 duly licensed engineering and construction firms
11325+
11326+
11327+
11328+
11329+
11330+ SB1699 Enrolled - 315 - LRB103 27684 AMQ 54061 b
11331+
11332+
11333+SB1699 Enrolled- 316 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 316 - LRB103 27684 AMQ 54061 b
11334+ SB1699 Enrolled - 316 - LRB103 27684 AMQ 54061 b
11335+1 detailing the estimated capital costs payable to one
11336+2 or more contractors or suppliers for the engineering,
11337+3 procurement and construction of the components
11338+4 comprising the initial clean coal facility and the
11339+5 estimated costs of operation and maintenance of the
11340+6 facility. The facility cost report shall include:
11341+7 (i) an estimate of the capital cost of the
11342+8 core plant based on one or more front end
11343+9 engineering and design studies for the
11344+10 gasification island and related facilities. The
11345+11 core plant shall include all civil, structural,
11346+12 mechanical, electrical, control, and safety
11347+13 systems.
11348+14 (ii) an estimate of the capital cost of the
11349+15 balance of the plant, including any capital costs
11350+16 associated with sequestration of carbon dioxide
11351+17 emissions and all interconnects and interfaces
11352+18 required to operate the facility, such as
11353+19 transmission of electricity, construction or
11354+20 backfeed power supply, pipelines to transport
11355+21 substitute natural gas or carbon dioxide, potable
11356+22 water supply, natural gas supply, water supply,
11357+23 water discharge, landfill, access roads, and coal
11358+24 delivery.
11359+25 The quoted construction costs shall be expressed
11360+26 in nominal dollars as of the date that the quote is
11361+
11362+
11363+
11364+
11365+
11366+ SB1699 Enrolled - 316 - LRB103 27684 AMQ 54061 b
11367+
11368+
11369+SB1699 Enrolled- 317 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 317 - LRB103 27684 AMQ 54061 b
11370+ SB1699 Enrolled - 317 - LRB103 27684 AMQ 54061 b
11371+1 prepared and shall include capitalized financing costs
11372+2 during construction, taxes, insurance, and other
11373+3 owner's costs, and an assumed escalation in materials
11374+4 and labor beyond the date as of which the construction
11375+5 cost quote is expressed.
11376+6 (B) The front end engineering and design study for
11377+7 the gasification island and the cost study for the
11378+8 balance of plant shall include sufficient design work
11379+9 to permit quantification of major categories of
11380+10 materials, commodities and labor hours, and receipt of
11381+11 quotes from vendors of major equipment required to
11382+12 construct and operate the clean coal facility.
11383+13 (C) The facility cost report shall also include an
11384+14 operating and maintenance cost quote that will provide
11385+15 the estimated cost of delivered fuel, personnel,
11386+16 maintenance contracts, chemicals, catalysts,
11387+17 consumables, spares, and other fixed and variable
11388+18 operations and maintenance costs. The delivered fuel
11389+19 cost estimate will be provided by a recognized third
11390+20 party expert or experts in the fuel and transportation
11391+21 industries. The balance of the operating and
11392+22 maintenance cost quote, excluding delivered fuel
11393+23 costs, will be developed based on the inputs provided
11394+24 by duly licensed engineering and construction firms
11395+25 performing the construction cost quote, potential
11396+26 vendors under long-term service agreements and plant
11397+
11398+
11399+
11400+
11401+
11402+ SB1699 Enrolled - 317 - LRB103 27684 AMQ 54061 b
11403+
11404+
11405+SB1699 Enrolled- 318 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 318 - LRB103 27684 AMQ 54061 b
11406+ SB1699 Enrolled - 318 - LRB103 27684 AMQ 54061 b
11407+1 operating agreements, or recognized third party plant
11408+2 operator or operators.
11409+3 The operating and maintenance cost quote
11410+4 (including the cost of the front end engineering and
11411+5 design study) shall be expressed in nominal dollars as
11412+6 of the date that the quote is prepared and shall
11413+7 include taxes, insurance, and other owner's costs, and
11414+8 an assumed escalation in materials and labor beyond
11415+9 the date as of which the operating and maintenance
11416+10 cost quote is expressed.
11417+11 (D) The facility cost report shall also include an
11418+12 analysis of the initial clean coal facility's ability
11419+13 to deliver power and energy into the applicable
11420+14 regional transmission organization markets and an
11421+15 analysis of the expected capacity factor for the
11422+16 initial clean coal facility.
11423+17 (E) Amounts paid to third parties unrelated to the
11424+18 owner or owners of the initial clean coal facility to
11425+19 prepare the core plant construction cost quote,
11426+20 including the front end engineering and design study,
11427+21 and the operating and maintenance cost quote will be
11428+22 reimbursed through Coal Development Bonds.
11429+23 (5) Re-powering and retrofitting coal-fired power
11430+24 plants previously owned by Illinois utilities to qualify
11431+25 as clean coal facilities. During the 2009 procurement
11432+26 planning process and thereafter, the Agency and the
11433+
11434+
11435+
11436+
11437+
11438+ SB1699 Enrolled - 318 - LRB103 27684 AMQ 54061 b
11439+
11440+
11441+SB1699 Enrolled- 319 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 319 - LRB103 27684 AMQ 54061 b
11442+ SB1699 Enrolled - 319 - LRB103 27684 AMQ 54061 b
11443+1 Commission shall consider sourcing agreements covering
11444+2 electricity generated by power plants that were previously
11445+3 owned by Illinois utilities and that have been or will be
11446+4 converted into clean coal facilities, as defined by
11447+5 Section 1-10 of this Act. Pursuant to such procurement
11448+6 planning process, the owners of such facilities may
11449+7 propose to the Agency sourcing agreements with utilities
11450+8 and alternative retail electric suppliers required to
11451+9 comply with subsection (d) of this Section and item (5) of
11452+10 subsection (d) of Section 16-115 of the Public Utilities
11453+11 Act, covering electricity generated by such facilities. In
11454+12 the case of sourcing agreements that are power purchase
11455+13 agreements, the contract price for electricity sales shall
11456+14 be established on a cost of service basis. In the case of
11457+15 sourcing agreements that are contracts for differences,
11458+16 the contract price from which the reference price is
11459+17 subtracted shall be established on a cost of service
11460+18 basis. The Agency and the Commission may approve any such
11461+19 utility sourcing agreements that do not exceed cost-based
11462+20 benchmarks developed by the procurement administrator, in
11463+21 consultation with the Commission staff, Agency staff and
11464+22 the procurement monitor, subject to Commission review and
11465+23 approval. The Commission shall have authority to inspect
11466+24 all books and records associated with these clean coal
11467+25 facilities during the term of any such contract.
11468+26 (6) Costs incurred under this subsection (d) or
11469+
11470+
11471+
11472+
11473+
11474+ SB1699 Enrolled - 319 - LRB103 27684 AMQ 54061 b
11475+
11476+
11477+SB1699 Enrolled- 320 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 320 - LRB103 27684 AMQ 54061 b
11478+ SB1699 Enrolled - 320 - LRB103 27684 AMQ 54061 b
11479+1 pursuant to a contract entered into under this subsection
11480+2 (d) shall be deemed prudently incurred and reasonable in
11481+3 amount and the electric utility shall be entitled to full
11482+4 cost recovery pursuant to the tariffs filed with the
11483+5 Commission.
11484+6 (d-5) Zero emission standard.
11485+7 (1) Beginning with the delivery year commencing on
11486+8 June 1, 2017, the Agency shall, for electric utilities
11487+9 that serve at least 100,000 retail customers in this
11488+10 State, procure contracts with zero emission facilities
11489+11 that are reasonably capable of generating cost-effective
11490+12 zero emission credits in an amount approximately equal to
11491+13 16% of the actual amount of electricity delivered by each
11492+14 electric utility to retail customers in the State during
11493+15 calendar year 2014. For an electric utility serving fewer
11494+16 than 100,000 retail customers in this State that
11495+17 requested, under Section 16-111.5 of the Public Utilities
11496+18 Act, that the Agency procure power and energy for all or a
11497+19 portion of the utility's Illinois load for the delivery
11498+20 year commencing June 1, 2016, the Agency shall procure
11499+21 contracts with zero emission facilities that are
11500+22 reasonably capable of generating cost-effective zero
11501+23 emission credits in an amount approximately equal to 16%
11502+24 of the portion of power and energy to be procured by the
11503+25 Agency for the utility. The duration of the contracts
11504+26 procured under this subsection (d-5) shall be for a term
11505+
11506+
11507+
11508+
11509+
11510+ SB1699 Enrolled - 320 - LRB103 27684 AMQ 54061 b
11511+
11512+
11513+SB1699 Enrolled- 321 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 321 - LRB103 27684 AMQ 54061 b
11514+ SB1699 Enrolled - 321 - LRB103 27684 AMQ 54061 b
11515+1 of 10 years ending May 31, 2027. The quantity of zero
11516+2 emission credits to be procured under the contracts shall
11517+3 be all of the zero emission credits generated by the zero
11518+4 emission facility in each delivery year; however, if the
11519+5 zero emission facility is owned by more than one entity,
11520+6 then the quantity of zero emission credits to be procured
11521+7 under the contracts shall be the amount of zero emission
11522+8 credits that are generated from the portion of the zero
11523+9 emission facility that is owned by the winning supplier.
11524+10 The 16% value identified in this paragraph (1) is the
11525+11 average of the percentage targets in subparagraph (B) of
11526+12 paragraph (1) of subsection (c) of this Section for the 5
11527+13 delivery years beginning June 1, 2017.
11528+14 The procurement process shall be subject to the
11529+15 following provisions:
11530+16 (A) Those zero emission facilities that intend to
11531+17 participate in the procurement shall submit to the
11532+18 Agency the following eligibility information for each
11533+19 zero emission facility on or before the date
11534+20 established by the Agency:
11535+21 (i) the in-service date and remaining useful
11536+22 life of the zero emission facility;
11537+23 (ii) the amount of power generated annually
11538+24 for each of the years 2005 through 2015, and the
11539+25 projected zero emission credits to be generated
11540+26 over the remaining useful life of the zero
11541+
11542+
11543+
11544+
11545+
11546+ SB1699 Enrolled - 321 - LRB103 27684 AMQ 54061 b
11547+
11548+
11549+SB1699 Enrolled- 322 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 322 - LRB103 27684 AMQ 54061 b
11550+ SB1699 Enrolled - 322 - LRB103 27684 AMQ 54061 b
11551+1 emission facility, which shall be used to
11552+2 determine the capability of each facility;
11553+3 (iii) the annual zero emission facility cost
11554+4 projections, expressed on a per megawatthour
11555+5 basis, over the next 6 delivery years, which shall
11556+6 include the following: operation and maintenance
11557+7 expenses; fully allocated overhead costs, which
11558+8 shall be allocated using the methodology developed
11559+9 by the Institute for Nuclear Power Operations;
11560+10 fuel expenditures; non-fuel capital expenditures;
11561+11 spent fuel expenditures; a return on working
11562+12 capital; the cost of operational and market risks
11563+13 that could be avoided by ceasing operation; and
11564+14 any other costs necessary for continued
11565+15 operations, provided that "necessary" means, for
11566+16 purposes of this item (iii), that the costs could
11567+17 reasonably be avoided only by ceasing operations
11568+18 of the zero emission facility; and
11569+19 (iv) a commitment to continue operating, for
11570+20 the duration of the contract or contracts executed
11571+21 under the procurement held under this subsection
11572+22 (d-5), the zero emission facility that produces
11573+23 the zero emission credits to be procured in the
11574+24 procurement.
11575+25 The information described in item (iii) of this
11576+26 subparagraph (A) may be submitted on a confidential
11577+
11578+
11579+
11580+
11581+
11582+ SB1699 Enrolled - 322 - LRB103 27684 AMQ 54061 b
11583+
11584+
11585+SB1699 Enrolled- 323 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 323 - LRB103 27684 AMQ 54061 b
11586+ SB1699 Enrolled - 323 - LRB103 27684 AMQ 54061 b
11587+1 basis and shall be treated and maintained by the
11588+2 Agency, the procurement administrator, and the
11589+3 Commission as confidential and proprietary and exempt
11590+4 from disclosure under subparagraphs (a) and (g) of
11591+5 paragraph (1) of Section 7 of the Freedom of
11592+6 Information Act. The Office of Attorney General shall
11593+7 have access to, and maintain the confidentiality of,
11594+8 such information pursuant to Section 6.5 of the
11595+9 Attorney General Act.
11596+10 (B) The price for each zero emission credit
11597+11 procured under this subsection (d-5) for each delivery
11598+12 year shall be in an amount that equals the Social Cost
11599+13 of Carbon, expressed on a price per megawatthour
11600+14 basis. However, to ensure that the procurement remains
11601+15 affordable to retail customers in this State if
11602+16 electricity prices increase, the price in an
11603+17 applicable delivery year shall be reduced below the
11604+18 Social Cost of Carbon by the amount ("Price
11605+19 Adjustment") by which the market price index for the
11606+20 applicable delivery year exceeds the baseline market
11607+21 price index for the consecutive 12-month period ending
11608+22 May 31, 2016. If the Price Adjustment is greater than
11609+23 or equal to the Social Cost of Carbon in an applicable
11610+24 delivery year, then no payments shall be due in that
11611+25 delivery year. The components of this calculation are
11612+26 defined as follows:
11613+
11614+
11615+
11616+
11617+
11618+ SB1699 Enrolled - 323 - LRB103 27684 AMQ 54061 b
11619+
11620+
11621+SB1699 Enrolled- 324 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 324 - LRB103 27684 AMQ 54061 b
11622+ SB1699 Enrolled - 324 - LRB103 27684 AMQ 54061 b
11623+1 (i) Social Cost of Carbon: The Social Cost of
11624+2 Carbon is $16.50 per megawatthour, which is based
11625+3 on the U.S. Interagency Working Group on Social
11626+4 Cost of Carbon's price in the August 2016
11627+5 Technical Update using a 3% discount rate,
11628+6 adjusted for inflation for each year of the
11629+7 program. Beginning with the delivery year
11630+8 commencing June 1, 2023, the price per
11631+9 megawatthour shall increase by $1 per
11632+10 megawatthour, and continue to increase by an
11633+11 additional $1 per megawatthour each delivery year
11634+12 thereafter.
11635+13 (ii) Baseline market price index: The baseline
11636+14 market price index for the consecutive 12-month
11637+15 period ending May 31, 2016 is $31.40 per
11638+16 megawatthour, which is based on the sum of (aa)
11639+17 the average day-ahead energy price across all
11640+18 hours of such 12-month period at the PJM
11641+19 Interconnection LLC Northern Illinois Hub, (bb)
11642+20 50% multiplied by the Base Residual Auction, or
11643+21 its successor, capacity price for the rest of the
11644+22 RTO zone group determined by PJM Interconnection
11645+23 LLC, divided by 24 hours per day, and (cc) 50%
11646+24 multiplied by the Planning Resource Auction, or
11647+25 its successor, capacity price for Zone 4
11648+26 determined by the Midcontinent Independent System
11649+
11650+
11651+
11652+
11653+
11654+ SB1699 Enrolled - 324 - LRB103 27684 AMQ 54061 b
11655+
11656+
11657+SB1699 Enrolled- 325 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 325 - LRB103 27684 AMQ 54061 b
11658+ SB1699 Enrolled - 325 - LRB103 27684 AMQ 54061 b
11659+1 Operator, Inc., divided by 24 hours per day.
11660+2 (iii) Market price index: The market price
11661+3 index for a delivery year shall be the sum of
11662+4 projected energy prices and projected capacity
11663+5 prices determined as follows:
11664+6 (aa) Projected energy prices: the
11665+7 projected energy prices for the applicable
11666+8 delivery year shall be calculated once for the
11667+9 year using the forward market price for the
11668+10 PJM Interconnection, LLC Northern Illinois
11669+11 Hub. The forward market price shall be
11670+12 calculated as follows: the energy forward
11671+13 prices for each month of the applicable
11672+14 delivery year averaged for each trade date
11673+15 during the calendar year immediately preceding
11674+16 that delivery year to produce a single energy
11675+17 forward price for the delivery year. The
11676+18 forward market price calculation shall use
11677+19 data published by the Intercontinental
11678+20 Exchange, or its successor.
11679+21 (bb) Projected capacity prices:
11680+22 (I) For the delivery years commencing
11681+23 June 1, 2017, June 1, 2018, and June 1,
11682+24 2019, the projected capacity price shall
11683+25 be equal to the sum of (1) 50% multiplied
11684+26 by the Base Residual Auction, or its
11685+
11686+
11687+
11688+
11689+
11690+ SB1699 Enrolled - 325 - LRB103 27684 AMQ 54061 b
11691+
11692+
11693+SB1699 Enrolled- 326 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 326 - LRB103 27684 AMQ 54061 b
11694+ SB1699 Enrolled - 326 - LRB103 27684 AMQ 54061 b
11695+1 successor, price for the rest of the RTO
11696+2 zone group as determined by PJM
11697+3 Interconnection LLC, divided by 24 hours
11698+4 per day and, (2) 50% multiplied by the
11699+5 resource auction price determined in the
11700+6 resource auction administered by the
11701+7 Midcontinent Independent System Operator,
11702+8 Inc., in which the largest percentage of
11703+9 load cleared for Local Resource Zone 4,
11704+10 divided by 24 hours per day, and where
11705+11 such price is determined by the
11706+12 Midcontinent Independent System Operator,
11707+13 Inc.
11708+14 (II) For the delivery year commencing
11709+15 June 1, 2020, and each year thereafter,
11710+16 the projected capacity price shall be
11711+17 equal to the sum of (1) 50% multiplied by
11712+18 the Base Residual Auction, or its
11713+19 successor, price for the ComEd zone as
11714+20 determined by PJM Interconnection LLC,
11715+21 divided by 24 hours per day, and (2) 50%
11716+22 multiplied by the resource auction price
11717+23 determined in the resource auction
11718+24 administered by the Midcontinent
11719+25 Independent System Operator, Inc., in
11720+26 which the largest percentage of load
11721+
11722+
11723+
11724+
11725+
11726+ SB1699 Enrolled - 326 - LRB103 27684 AMQ 54061 b
11727+
11728+
11729+SB1699 Enrolled- 327 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 327 - LRB103 27684 AMQ 54061 b
11730+ SB1699 Enrolled - 327 - LRB103 27684 AMQ 54061 b
11731+1 cleared for Local Resource Zone 4, divided
11732+2 by 24 hours per day, and where such price
11733+3 is determined by the Midcontinent
11734+4 Independent System Operator, Inc.
11735+5 For purposes of this subsection (d-5):
11736+6 "Rest of the RTO" and "ComEd Zone" shall have
11737+7 the meaning ascribed to them by PJM
11738+8 Interconnection, LLC.
11739+9 "RTO" means regional transmission
11740+10 organization.
11741+11 (C) No later than 45 days after June 1, 2017 (the
11742+12 effective date of Public Act 99-906), the Agency shall
11743+13 publish its proposed zero emission standard
11744+14 procurement plan. The plan shall be consistent with
11745+15 the provisions of this paragraph (1) and shall provide
11746+16 that winning bids shall be selected based on public
11747+17 interest criteria that include, but are not limited
11748+18 to, minimizing carbon dioxide emissions that result
11749+19 from electricity consumed in Illinois and minimizing
11750+20 sulfur dioxide, nitrogen oxide, and particulate matter
11751+21 emissions that adversely affect the citizens of this
11752+22 State. In particular, the selection of winning bids
11753+23 shall take into account the incremental environmental
11754+24 benefits resulting from the procurement, such as any
11755+25 existing environmental benefits that are preserved by
11756+26 the procurements held under Public Act 99-906 and
11757+
11758+
11759+
11760+
11761+
11762+ SB1699 Enrolled - 327 - LRB103 27684 AMQ 54061 b
11763+
11764+
11765+SB1699 Enrolled- 328 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 328 - LRB103 27684 AMQ 54061 b
11766+ SB1699 Enrolled - 328 - LRB103 27684 AMQ 54061 b
11767+1 would cease to exist if the procurements were not
11768+2 held, including the preservation of zero emission
11769+3 facilities. The plan shall also describe in detail how
11770+4 each public interest factor shall be considered and
11771+5 weighted in the bid selection process to ensure that
11772+6 the public interest criteria are applied to the
11773+7 procurement and given full effect.
11774+8 For purposes of developing the plan, the Agency
11775+9 shall consider any reports issued by a State agency,
11776+10 board, or commission under House Resolution 1146 of
11777+11 the 98th General Assembly and paragraph (4) of
11778+12 subsection (d) of this Section, as well as publicly
11779+13 available analyses and studies performed by or for
11780+14 regional transmission organizations that serve the
11781+15 State and their independent market monitors.
11782+16 Upon publishing of the zero emission standard
11783+17 procurement plan, copies of the plan shall be posted
11784+18 and made publicly available on the Agency's website.
11785+19 All interested parties shall have 10 days following
11786+20 the date of posting to provide comment to the Agency on
11787+21 the plan. All comments shall be posted to the Agency's
11788+22 website. Following the end of the comment period, but
11789+23 no more than 60 days later than June 1, 2017 (the
11790+24 effective date of Public Act 99-906), the Agency shall
11791+25 revise the plan as necessary based on the comments
11792+26 received and file its zero emission standard
11793+
11794+
11795+
11796+
11797+
11798+ SB1699 Enrolled - 328 - LRB103 27684 AMQ 54061 b
11799+
11800+
11801+SB1699 Enrolled- 329 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 329 - LRB103 27684 AMQ 54061 b
11802+ SB1699 Enrolled - 329 - LRB103 27684 AMQ 54061 b
11803+1 procurement plan with the Commission.
11804+2 If the Commission determines that the plan will
11805+3 result in the procurement of cost-effective zero
11806+4 emission credits, then the Commission shall, after
11807+5 notice and hearing, but no later than 45 days after the
11808+6 Agency filed the plan, approve the plan or approve
11809+7 with modification. For purposes of this subsection
11810+8 (d-5), "cost effective" means the projected costs of
11811+9 procuring zero emission credits from zero emission
11812+10 facilities do not cause the limit stated in paragraph
11813+11 (2) of this subsection to be exceeded.
11814+12 (C-5) As part of the Commission's review and
11815+13 acceptance or rejection of the procurement results,
11816+14 the Commission shall, in its public notice of
11817+15 successful bidders:
11818+16 (i) identify how the winning bids satisfy the
11819+17 public interest criteria described in subparagraph
11820+18 (C) of this paragraph (1) of minimizing carbon
11821+19 dioxide emissions that result from electricity
11822+20 consumed in Illinois and minimizing sulfur
11823+21 dioxide, nitrogen oxide, and particulate matter
11824+22 emissions that adversely affect the citizens of
11825+23 this State;
11826+24 (ii) specifically address how the selection of
11827+25 winning bids takes into account the incremental
11828+26 environmental benefits resulting from the
11829+
11830+
11831+
11832+
11833+
11834+ SB1699 Enrolled - 329 - LRB103 27684 AMQ 54061 b
11835+
11836+
11837+SB1699 Enrolled- 330 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 330 - LRB103 27684 AMQ 54061 b
11838+ SB1699 Enrolled - 330 - LRB103 27684 AMQ 54061 b
11839+1 procurement, including any existing environmental
11840+2 benefits that are preserved by the procurements
11841+3 held under Public Act 99-906 and would have ceased
11842+4 to exist if the procurements had not been held,
11843+5 such as the preservation of zero emission
11844+6 facilities;
11845+7 (iii) quantify the environmental benefit of
11846+8 preserving the resources identified in item (ii)
11847+9 of this subparagraph (C-5), including the
11848+10 following:
11849+11 (aa) the value of avoided greenhouse gas
11850+12 emissions measured as the product of the zero
11851+13 emission facilities' output over the contract
11852+14 term multiplied by the U.S. Environmental
11853+15 Protection Agency eGrid subregion carbon
11854+16 dioxide emission rate and the U.S. Interagency
11855+17 Working Group on Social Cost of Carbon's price
11856+18 in the August 2016 Technical Update using a 3%
11857+19 discount rate, adjusted for inflation for each
11858+20 delivery year; and
11859+21 (bb) the costs of replacement with other
11860+22 zero carbon dioxide resources, including wind
11861+23 and photovoltaic, based upon the simple
11862+24 average of the following:
11863+25 (I) the price, or if there is more
11864+26 than one price, the average of the prices,
11865+
11866+
11867+
11868+
11869+
11870+ SB1699 Enrolled - 330 - LRB103 27684 AMQ 54061 b
11871+
11872+
11873+SB1699 Enrolled- 331 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 331 - LRB103 27684 AMQ 54061 b
11874+ SB1699 Enrolled - 331 - LRB103 27684 AMQ 54061 b
11875+1 paid for renewable energy credits from new
11876+2 utility-scale wind projects in the
11877+3 procurement events specified in item (i)
11878+4 of subparagraph (G) of paragraph (1) of
11879+5 subsection (c) of this Section; and
11880+6 (II) the price, or if there is more
11881+7 than one price, the average of the prices,
11882+8 paid for renewable energy credits from new
11883+9 utility-scale solar projects and
11884+10 brownfield site photovoltaic projects in
11885+11 the procurement events specified in item
11886+12 (ii) of subparagraph (G) of paragraph (1)
11887+13 of subsection (c) of this Section and,
11888+14 after January 1, 2015, renewable energy
11889+15 credits from photovoltaic distributed
11890+16 generation projects in procurement events
11891+17 held under subsection (c) of this Section.
11892+18 Each utility shall enter into binding contractual
11893+19 arrangements with the winning suppliers.
11894+20 The procurement described in this subsection
11895+21 (d-5), including, but not limited to, the execution of
11896+22 all contracts procured, shall be completed no later
11897+23 than May 10, 2017. Based on the effective date of
11898+24 Public Act 99-906, the Agency and Commission may, as
11899+25 appropriate, modify the various dates and timelines
11900+26 under this subparagraph and subparagraphs (C) and (D)
11901+
11902+
11903+
11904+
11905+
11906+ SB1699 Enrolled - 331 - LRB103 27684 AMQ 54061 b
11907+
11908+
11909+SB1699 Enrolled- 332 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 332 - LRB103 27684 AMQ 54061 b
11910+ SB1699 Enrolled - 332 - LRB103 27684 AMQ 54061 b
11911+1 of this paragraph (1). The procurement and plan
11912+2 approval processes required by this subsection (d-5)
11913+3 shall be conducted in conjunction with the procurement
11914+4 and plan approval processes required by subsection (c)
11915+5 of this Section and Section 16-111.5 of the Public
11916+6 Utilities Act, to the extent practicable.
11917+7 Notwithstanding whether a procurement event is
11918+8 conducted under Section 16-111.5 of the Public
11919+9 Utilities Act, the Agency shall immediately initiate a
11920+10 procurement process on June 1, 2017 (the effective
11921+11 date of Public Act 99-906).
11922+12 (D) Following the procurement event described in
11923+13 this paragraph (1) and consistent with subparagraph
11924+14 (B) of this paragraph (1), the Agency shall calculate
11925+15 the payments to be made under each contract for the
11926+16 next delivery year based on the market price index for
11927+17 that delivery year. The Agency shall publish the
11928+18 payment calculations no later than May 25, 2017 and
11929+19 every May 25 thereafter.
11930+20 (E) Notwithstanding the requirements of this
11931+21 subsection (d-5), the contracts executed under this
11932+22 subsection (d-5) shall provide that the zero emission
11933+23 facility may, as applicable, suspend or terminate
11934+24 performance under the contracts in the following
11935+25 instances:
11936+26 (i) A zero emission facility shall be excused
11937+
11938+
11939+
11940+
11941+
11942+ SB1699 Enrolled - 332 - LRB103 27684 AMQ 54061 b
11943+
11944+
11945+SB1699 Enrolled- 333 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 333 - LRB103 27684 AMQ 54061 b
11946+ SB1699 Enrolled - 333 - LRB103 27684 AMQ 54061 b
11947+1 from its performance under the contract for any
11948+2 cause beyond the control of the resource,
11949+3 including, but not restricted to, acts of God,
11950+4 flood, drought, earthquake, storm, fire,
11951+5 lightning, epidemic, war, riot, civil disturbance
11952+6 or disobedience, labor dispute, labor or material
11953+7 shortage, sabotage, acts of public enemy,
11954+8 explosions, orders, regulations or restrictions
11955+9 imposed by governmental, military, or lawfully
11956+10 established civilian authorities, which, in any of
11957+11 the foregoing cases, by exercise of commercially
11958+12 reasonable efforts the zero emission facility
11959+13 could not reasonably have been expected to avoid,
11960+14 and which, by the exercise of commercially
11961+15 reasonable efforts, it has been unable to
11962+16 overcome. In such event, the zero emission
11963+17 facility shall be excused from performance for the
11964+18 duration of the event, including, but not limited
11965+19 to, delivery of zero emission credits, and no
11966+20 payment shall be due to the zero emission facility
11967+21 during the duration of the event.
11968+22 (ii) A zero emission facility shall be
11969+23 permitted to terminate the contract if legislation
11970+24 is enacted into law by the General Assembly that
11971+25 imposes or authorizes a new tax, special
11972+26 assessment, or fee on the generation of
11973+
11974+
11975+
11976+
11977+
11978+ SB1699 Enrolled - 333 - LRB103 27684 AMQ 54061 b
11979+
11980+
11981+SB1699 Enrolled- 334 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 334 - LRB103 27684 AMQ 54061 b
11982+ SB1699 Enrolled - 334 - LRB103 27684 AMQ 54061 b
11983+1 electricity, the ownership or leasehold of a
11984+2 generating unit, or the privilege or occupation of
11985+3 such generation, ownership, or leasehold of
11986+4 generation units by a zero emission facility.
11987+5 However, the provisions of this item (ii) do not
11988+6 apply to any generally applicable tax, special
11989+7 assessment or fee, or requirements imposed by
11990+8 federal law.
11991+9 (iii) A zero emission facility shall be
11992+10 permitted to terminate the contract in the event
11993+11 that the resource requires capital expenditures in
11994+12 excess of $40,000,000 that were neither known nor
11995+13 reasonably foreseeable at the time it executed the
11996+14 contract and that a prudent owner or operator of
11997+15 such resource would not undertake.
11998+16 (iv) A zero emission facility shall be
11999+17 permitted to terminate the contract in the event
12000+18 the Nuclear Regulatory Commission terminates the
12001+19 resource's license.
12002+20 (F) If the zero emission facility elects to
12003+21 terminate a contract under subparagraph (E) of this
12004+22 paragraph (1), then the Commission shall reopen the
12005+23 docket in which the Commission approved the zero
12006+24 emission standard procurement plan under subparagraph
12007+25 (C) of this paragraph (1) and, after notice and
12008+26 hearing, enter an order acknowledging the contract
12009+
12010+
12011+
12012+
12013+
12014+ SB1699 Enrolled - 334 - LRB103 27684 AMQ 54061 b
12015+
12016+
12017+SB1699 Enrolled- 335 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 335 - LRB103 27684 AMQ 54061 b
12018+ SB1699 Enrolled - 335 - LRB103 27684 AMQ 54061 b
12019+1 termination election if such termination is consistent
12020+2 with the provisions of this subsection (d-5).
12021+3 (2) For purposes of this subsection (d-5), the amount
12022+4 paid per kilowatthour means the total amount paid for
12023+5 electric service expressed on a per kilowatthour basis.
12024+6 For purposes of this subsection (d-5), the total amount
12025+7 paid for electric service includes, without limitation,
12026+8 amounts paid for supply, transmission, distribution,
12027+9 surcharges, and add-on taxes.
12028+10 Notwithstanding the requirements of this subsection
12029+11 (d-5), the contracts executed under this subsection (d-5)
12030+12 shall provide that the total of zero emission credits
12031+13 procured under a procurement plan shall be subject to the
12032+14 limitations of this paragraph (2). For each delivery year,
12033+15 the contractual volume receiving payments in such year
12034+16 shall be reduced for all retail customers based on the
12035+17 amount necessary to limit the net increase that delivery
12036+18 year to the costs of those credits included in the amounts
12037+19 paid by eligible retail customers in connection with
12038+20 electric service to no more than 1.65% of the amount paid
12039+21 per kilowatthour by eligible retail customers during the
12040+22 year ending May 31, 2009. The result of this computation
12041+23 shall apply to and reduce the procurement for all retail
12042+24 customers, and all those customers shall pay the same
12043+25 single, uniform cents per kilowatthour charge under
12044+26 subsection (k) of Section 16-108 of the Public Utilities
12045+
12046+
12047+
12048+
12049+
12050+ SB1699 Enrolled - 335 - LRB103 27684 AMQ 54061 b
12051+
12052+
12053+SB1699 Enrolled- 336 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 336 - LRB103 27684 AMQ 54061 b
12054+ SB1699 Enrolled - 336 - LRB103 27684 AMQ 54061 b
12055+1 Act. To arrive at a maximum dollar amount of zero emission
12056+2 credits to be paid for the particular delivery year, the
12057+3 resulting per kilowatthour amount shall be applied to the
12058+4 actual amount of kilowatthours of electricity delivered by
12059+5 the electric utility in the delivery year immediately
12060+6 prior to the procurement, to all retail customers in its
12061+7 service territory. Unpaid contractual volume for any
12062+8 delivery year shall be paid in any subsequent delivery
12063+9 year in which such payments can be made without exceeding
12064+10 the amount specified in this paragraph (2). The
12065+11 calculations required by this paragraph (2) shall be made
12066+12 only once for each procurement plan year. Once the
12067+13 determination as to the amount of zero emission credits to
12068+14 be paid is made based on the calculations set forth in this
12069+15 paragraph (2), no subsequent rate impact determinations
12070+16 shall be made and no adjustments to those contract amounts
12071+17 shall be allowed. All costs incurred under those contracts
12072+18 and in implementing this subsection (d-5) shall be
12073+19 recovered by the electric utility as provided in this
12074+20 Section.
12075+21 No later than June 30, 2019, the Commission shall
12076+22 review the limitation on the amount of zero emission
12077+23 credits procured under this subsection (d-5) and report to
12078+24 the General Assembly its findings as to whether that
12079+25 limitation unduly constrains the procurement of
12080+26 cost-effective zero emission credits.
12081+
12082+
12083+
12084+
12085+
12086+ SB1699 Enrolled - 336 - LRB103 27684 AMQ 54061 b
12087+
12088+
12089+SB1699 Enrolled- 337 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 337 - LRB103 27684 AMQ 54061 b
12090+ SB1699 Enrolled - 337 - LRB103 27684 AMQ 54061 b
12091+1 (3) Six years after the execution of a contract under
12092+2 this subsection (d-5), the Agency shall determine whether
12093+3 the actual zero emission credit payments received by the
12094+4 supplier over the 6-year period exceed the Average ZEC
12095+5 Payment. In addition, at the end of the term of a contract
12096+6 executed under this subsection (d-5), or at the time, if
12097+7 any, a zero emission facility's contract is terminated
12098+8 under subparagraph (E) of paragraph (1) of this subsection
12099+9 (d-5), then the Agency shall determine whether the actual
12100+10 zero emission credit payments received by the supplier
12101+11 over the term of the contract exceed the Average ZEC
12102+12 Payment, after taking into account any amounts previously
12103+13 credited back to the utility under this paragraph (3). If
12104+14 the Agency determines that the actual zero emission credit
12105+15 payments received by the supplier over the relevant period
12106+16 exceed the Average ZEC Payment, then the supplier shall
12107+17 credit the difference back to the utility. The amount of
12108+18 the credit shall be remitted to the applicable electric
12109+19 utility no later than 120 days after the Agency's
12110+20 determination, which the utility shall reflect as a credit
12111+21 on its retail customer bills as soon as practicable;
12112+22 however, the credit remitted to the utility shall not
12113+23 exceed the total amount of payments received by the
12114+24 facility under its contract.
12115+25 For purposes of this Section, the Average ZEC Payment
12116+26 shall be calculated by multiplying the quantity of zero
12117+
12118+
12119+
12120+
12121+
12122+ SB1699 Enrolled - 337 - LRB103 27684 AMQ 54061 b
12123+
12124+
12125+SB1699 Enrolled- 338 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 338 - LRB103 27684 AMQ 54061 b
12126+ SB1699 Enrolled - 338 - LRB103 27684 AMQ 54061 b
12127+1 emission credits delivered under the contract times the
12128+2 average contract price. The average contract price shall
12129+3 be determined by subtracting the amount calculated under
12130+4 subparagraph (B) of this paragraph (3) from the amount
12131+5 calculated under subparagraph (A) of this paragraph (3),
12132+6 as follows:
12133+7 (A) The average of the Social Cost of Carbon, as
12134+8 defined in subparagraph (B) of paragraph (1) of this
12135+9 subsection (d-5), during the term of the contract.
12136+10 (B) The average of the market price indices, as
12137+11 defined in subparagraph (B) of paragraph (1) of this
12138+12 subsection (d-5), during the term of the contract,
12139+13 minus the baseline market price index, as defined in
12140+14 subparagraph (B) of paragraph (1) of this subsection
12141+15 (d-5).
12142+16 If the subtraction yields a negative number, then the
12143+17 Average ZEC Payment shall be zero.
12144+18 (4) Cost-effective zero emission credits procured from
12145+19 zero emission facilities shall satisfy the applicable
12146+20 definitions set forth in Section 1-10 of this Act.
12147+21 (5) The electric utility shall retire all zero
12148+22 emission credits used to comply with the requirements of
12149+23 this subsection (d-5).
12150+24 (6) Electric utilities shall be entitled to recover
12151+25 all of the costs associated with the procurement of zero
12152+26 emission credits through an automatic adjustment clause
12153+
12154+
12155+
12156+
12157+
12158+ SB1699 Enrolled - 338 - LRB103 27684 AMQ 54061 b
12159+
12160+
12161+SB1699 Enrolled- 339 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 339 - LRB103 27684 AMQ 54061 b
12162+ SB1699 Enrolled - 339 - LRB103 27684 AMQ 54061 b
12163+1 tariff in accordance with subsection (k) and (m) of
12164+2 Section 16-108 of the Public Utilities Act, and the
12165+3 contracts executed under this subsection (d-5) shall
12166+4 provide that the utilities' payment obligations under such
12167+5 contracts shall be reduced if an adjustment is required
12168+6 under subsection (m) of Section 16-108 of the Public
12169+7 Utilities Act.
12170+8 (7) This subsection (d-5) shall become inoperative on
12171+9 January 1, 2028.
12172+10 (d-10) Nuclear Plant Assistance; carbon mitigation
12173+11 credits.
12174+12 (1) The General Assembly finds:
12175+13 (A) The health, welfare, and prosperity of all
12176+14 Illinois citizens require that the State of Illinois act
12177+15 to avoid and not increase carbon emissions from electric
12178+16 generation sources while continuing to ensure affordable,
12179+17 stable, and reliable electricity to all citizens.
12180+18 (B) Absent immediate action by the State to preserve
12181+19 existing carbon-free energy resources, those resources may
12182+20 retire, and the electric generation needs of Illinois'
12183+21 retail customers may be met instead by facilities that
12184+22 emit significant amounts of carbon pollution and other
12185+23 harmful air pollutants at a high social and economic cost
12186+24 until Illinois is able to develop other forms of clean
12187+25 energy.
12188+26 (C) The General Assembly finds that nuclear power
12189+
12190+
12191+
12192+
12193+
12194+ SB1699 Enrolled - 339 - LRB103 27684 AMQ 54061 b
12195+
12196+
12197+SB1699 Enrolled- 340 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 340 - LRB103 27684 AMQ 54061 b
12198+ SB1699 Enrolled - 340 - LRB103 27684 AMQ 54061 b
12199+1 generation is necessary for the State's transition to 100%
12200+2 clean energy, and ensuring continued operation of nuclear
12201+3 plants advances environmental and public health interests
12202+4 through providing carbon-free electricity while reducing
12203+5 the air pollution profile of the Illinois energy
12204+6 generation fleet.
12205+7 (D) The clean energy attributes of nuclear generation
12206+8 facilities support the State in its efforts to achieve
12207+9 100% clean energy.
12208+10 (E) The State currently invests in various forms of
12209+11 clean energy, including, but not limited to, renewable
12210+12 energy, energy efficiency, and low-emission vehicles,
12211+13 among others.
12212+14 (F) The Environmental Protection Agency commissioned
12213+15 an independent audit which provided a detailed assessment
12214+16 of the financial condition of the Illinois nuclear fleet
12215+17 to evaluate its financial viability and whether the
12216+18 environmental benefits of such resources were at risk. The
12217+19 report identified the risk of losing the environmental
12218+20 benefits of several specific nuclear units. The report
12219+21 also identified that the LaSalle County Generating Station
12220+22 will continue to operate through 2026 and therefore is not
12221+23 eligible to participate in the carbon mitigation credit
12222+24 program.
12223+25 (G) Nuclear plants provide carbon-free energy, which
12224+26 helps to avoid many health-related negative impacts for
12225+
12226+
12227+
12228+
12229+
12230+ SB1699 Enrolled - 340 - LRB103 27684 AMQ 54061 b
12231+
12232+
12233+SB1699 Enrolled- 341 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 341 - LRB103 27684 AMQ 54061 b
12234+ SB1699 Enrolled - 341 - LRB103 27684 AMQ 54061 b
12235+1 Illinois residents.
12236+2 (H) The procurement of carbon mitigation credits
12237+3 representing the environmental benefits of carbon-free
12238+4 generation will further the State's efforts at achieving
12239+5 100% clean energy and decarbonizing the electricity sector
12240+6 in a safe, reliable, and affordable manner. Further, the
12241+7 procurement of carbon emission credits will enhance the
12242+8 health and welfare of Illinois residents through decreased
12243+9 reliance on more highly polluting generation.
12244+10 (I) The General Assembly therefore finds it necessary
12245+11 to establish carbon mitigation credits to ensure decreased
12246+12 reliance on more carbon-intensive energy resources, for
12247+13 transitioning to a fully decarbonized electricity sector,
12248+14 and to help ensure health and welfare of the State's
12249+15 residents.
12250+16 (2) As used in this subsection:
12251+17 "Baseline costs" means costs used to establish a customer
12252+18 protection cap that have been evaluated through an independent
12253+19 audit of a carbon-free energy resource conducted by the
12254+20 Environmental Protection Agency that evaluated projected
12255+21 annual costs for operation and maintenance expenses; fully
12256+22 allocated overhead costs, which shall be allocated using the
12257+23 methodology developed by the Institute for Nuclear Power
12258+24 Operations; fuel expenditures; nonfuel capital expenditures;
12259+25 spent fuel expenditures; a return on working capital; the cost
12260+26 of operational and market risks that could be avoided by
12261+
12262+
12263+
12264+
12265+
12266+ SB1699 Enrolled - 341 - LRB103 27684 AMQ 54061 b
12267+
12268+
12269+SB1699 Enrolled- 342 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 342 - LRB103 27684 AMQ 54061 b
12270+ SB1699 Enrolled - 342 - LRB103 27684 AMQ 54061 b
12271+1 ceasing operation; and any other costs necessary for continued
12272+2 operations, provided that "necessary" means, for purposes of
12273+3 this definition, that the costs could reasonably be avoided
12274+4 only by ceasing operations of the carbon-free energy resource.
12275+5 "Carbon mitigation credit" means a tradable credit that
12276+6 represents the carbon emission reduction attributes of one
12277+7 megawatt-hour of energy produced from a carbon-free energy
12278+8 resource.
12279+9 "Carbon-free energy resource" means a generation facility
12280+10 that: (1) is fueled by nuclear power; and (2) is
12281+11 interconnected to PJM Interconnection, LLC.
12282+12 (3) Procurement.
12283+13 (A) Beginning with the delivery year commencing on
12284+14 June 1, 2022, the Agency shall, for electric utilities
12285+15 serving at least 3,000,000 retail customers in the State,
12286+16 seek to procure contracts for no more than approximately
12287+17 54,500,000 cost-effective carbon mitigation credits from
12288+18 carbon-free energy resources because such credits are
12289+19 necessary to support current levels of carbon-free energy
12290+20 generation and ensure the State meets its carbon dioxide
12291+21 emissions reduction goals. The Agency shall not make a
12292+22 partial award of a contract for carbon mitigation credits
12293+23 covering a fractional amount of a carbon-free energy
12294+24 resource's projected output.
12295+25 (B) Each carbon-free energy resource that intends to
12296+26 participate in a procurement shall be required to submit
12297+
12298+
12299+
12300+
12301+
12302+ SB1699 Enrolled - 342 - LRB103 27684 AMQ 54061 b
12303+
12304+
12305+SB1699 Enrolled- 343 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 343 - LRB103 27684 AMQ 54061 b
12306+ SB1699 Enrolled - 343 - LRB103 27684 AMQ 54061 b
12307+1 to the Agency the following information for the resource
12308+2 on or before the date established by the Agency:
12309+3 (i) the in-service date and remaining useful life
12310+4 of the carbon-free energy resource;
12311+5 (ii) the amount of power generated annually for
12312+6 each of the past 10 years, which shall be used to
12313+7 determine the capability of each facility;
12314+8 (iii) a commitment to be reflected in any contract
12315+9 entered into pursuant to this subsection (d-10) to
12316+10 continue operating the carbon-free energy resource at
12317+11 a capacity factor of at least 88% annually on average
12318+12 for the duration of the contract or contracts executed
12319+13 under the procurement held under this subsection
12320+14 (d-10), except in an instance described in
12321+15 subparagraph (E) of paragraph (1) of subsection (d-5)
12322+16 of this Section or made impracticable as a result of
12323+17 compliance with law or regulation;
12324+18 (iv) financial need and the risk of loss of the
12325+19 environmental benefits of such resource, which shall
12326+20 include the following information:
12327+21 (I) the carbon-free energy resource's cost
12328+22 projections, expressed on a per megawatt-hour
12329+23 basis, over the next 5 delivery years, which shall
12330+24 include the following: operation and maintenance
12331+25 expenses; fully allocated overhead costs, which
12332+26 shall be allocated using the methodology developed
12333+
12334+
12335+
12336+
12337+
12338+ SB1699 Enrolled - 343 - LRB103 27684 AMQ 54061 b
12339+
12340+
12341+SB1699 Enrolled- 344 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 344 - LRB103 27684 AMQ 54061 b
12342+ SB1699 Enrolled - 344 - LRB103 27684 AMQ 54061 b
12343+1 by the Institute for Nuclear Power Operations;
12344+2 fuel expenditures; nonfuel capital expenditures;
12345+3 spent fuel expenditures; a return on working
12346+4 capital; the cost of operational and market risks
12347+5 that could be avoided by ceasing operation; and
12348+6 any other costs necessary for continued
12349+7 operations, provided that "necessary" means, for
12350+8 purposes of this subitem (I), that the costs could
12351+9 reasonably be avoided only by ceasing operations
12352+10 of the carbon-free energy resource; and
12353+11 (II) the carbon-free energy resource's revenue
12354+12 projections, including energy, capacity, ancillary
12355+13 services, any other direct State support, known or
12356+14 anticipated federal attribute credits, known or
12357+15 anticipated tax credits, and any other direct
12358+16 federal support.
12359+17 The information described in this subparagraph (B) may
12360+18 be submitted on a confidential basis and shall be treated
12361+19 and maintained by the Agency, the procurement
12362+20 administrator, and the Commission as confidential and
12363+21 proprietary and exempt from disclosure under subparagraphs
12364+22 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
12365+23 Information Act. The Office of the Attorney General shall
12366+24 have access to, and maintain the confidentiality of, such
12367+25 information pursuant to Section 6.5 of the Attorney
12368+26 General Act.
12369+
12370+
12371+
12372+
12373+
12374+ SB1699 Enrolled - 344 - LRB103 27684 AMQ 54061 b
12375+
12376+
12377+SB1699 Enrolled- 345 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 345 - LRB103 27684 AMQ 54061 b
12378+ SB1699 Enrolled - 345 - LRB103 27684 AMQ 54061 b
12379+1 (C) The Agency shall solicit bids for the contracts
12380+2 described in this subsection (d-10) from carbon-free
12381+3 energy resources that have satisfied the requirements of
12382+4 subparagraph (B) of this paragraph (3). The contracts
12383+5 procured pursuant to a procurement event shall reflect,
12384+6 and be subject to, the following terms, requirements, and
12385+7 limitations:
12386+8 (i) Contracts are for delivery of carbon
12387+9 mitigation credits, and are not energy or capacity
12388+10 sales contracts requiring physical delivery. Pursuant
12389+11 to item (iii), contract payments shall fully deduct
12390+12 the value of any monetized federal production tax
12391+13 credits, credits issued pursuant to a federal clean
12392+14 energy standard, and other federal credits if
12393+15 applicable.
12394+16 (ii) Contracts for carbon mitigation credits shall
12395+17 commence with the delivery year beginning on June 1,
12396+18 2022 and shall be for a term of 5 delivery years
12397+19 concluding on May 31, 2027.
12398+20 (iii) The price per carbon mitigation credit to be
12399+21 paid under a contract for a given delivery year shall
12400+22 be equal to an accepted bid price less the sum of:
12401+23 (I) one of the following energy price indices,
12402+24 selected by the bidder at the time of the bid for
12403+25 the term of the contract:
12404+26 (aa) the weighted-average hourly day-ahead
12405+
12406+
12407+
12408+
12409+
12410+ SB1699 Enrolled - 345 - LRB103 27684 AMQ 54061 b
12411+
12412+
12413+SB1699 Enrolled- 346 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 346 - LRB103 27684 AMQ 54061 b
12414+ SB1699 Enrolled - 346 - LRB103 27684 AMQ 54061 b
12415+1 price for the applicable delivery year at the
12416+2 busbar of all resources procured pursuant to
12417+3 this subsection (d-10), weighted by actual
12418+4 production from the resources; or
12419+5 (bb) the projected energy price for the
12420+6 PJM Interconnection, LLC Northern Illinois Hub
12421+7 for the applicable delivery year determined
12422+8 according to subitem (aa) of item (iii) of
12423+9 subparagraph (B) of paragraph (1) of
12424+10 subsection (d-5).
12425+11 (II) the Base Residual Auction Capacity Price
12426+12 for the ComEd zone as determined by PJM
12427+13 Interconnection, LLC, divided by 24 hours per day,
12428+14 for the applicable delivery year for the first 3
12429+15 delivery years, and then any subsequent delivery
12430+16 years unless the PJM Interconnection, LLC applies
12431+17 the Minimum Offer Price Rule to participating
12432+18 carbon-free energy resources because they supply
12433+19 carbon mitigation credits pursuant to this Section
12434+20 at which time, upon notice by the carbon-free
12435+21 energy resource to the Commission and subject to
12436+22 the Commission's confirmation, the value under
12437+23 this subitem shall be zero, as further described
12438+24 in the carbon mitigation credit procurement plan;
12439+25 and
12440+26 (III) any value of monetized federal tax
12441+
12442+
12443+
12444+
12445+
12446+ SB1699 Enrolled - 346 - LRB103 27684 AMQ 54061 b
12447+
12448+
12449+SB1699 Enrolled- 347 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 347 - LRB103 27684 AMQ 54061 b
12450+ SB1699 Enrolled - 347 - LRB103 27684 AMQ 54061 b
12451+1 credits, direct payments, or similar subsidy
12452+2 provided to the carbon-free energy resource from
12453+3 any unit of government that is not already
12454+4 reflected in energy prices.
12455+5 If the price-per-megawatt-hour calculation
12456+6 performed under item (iii) of this subparagraph (C)
12457+7 for a given delivery year results in a net positive
12458+8 value, then the electric utility counterparty to the
12459+9 contract shall multiply such net value by the
12460+10 applicable contract quantity and remit the amount to
12461+11 the supplier.
12462+12 To protect retail customers from retail rate
12463+13 impacts that may arise upon the initiation of carbon
12464+14 policy changes, if the price-per-megawatt-hour
12465+15 calculation performed under item (iii) of this
12466+16 subparagraph (C) for a given delivery year results in
12467+17 a net negative value, then the supplier counterparty
12468+18 to the contract shall multiply such net value by the
12469+19 applicable contract quantity and remit such amount to
12470+20 the electric utility counterparty. The electric
12471+21 utility shall reflect such amounts remitted by
12472+22 suppliers as a credit on its retail customer bills as
12473+23 soon as practicable.
12474+24 (iv) To ensure that retail customers in Northern
12475+25 Illinois do not pay more for carbon mitigation credits
12476+26 than the value such credits provide, and
12477+
12478+
12479+
12480+
12481+
12482+ SB1699 Enrolled - 347 - LRB103 27684 AMQ 54061 b
12483+
12484+
12485+SB1699 Enrolled- 348 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 348 - LRB103 27684 AMQ 54061 b
12486+ SB1699 Enrolled - 348 - LRB103 27684 AMQ 54061 b
12487+1 notwithstanding the provisions of this subsection
12488+2 (d-10), the Agency shall not accept bids for contracts
12489+3 that exceed a customer protection cap equal to the
12490+4 baseline costs of carbon-free energy resources.
12491+5 The baseline costs for the applicable year shall
12492+6 be the following:
12493+7 (I) For the delivery year beginning June 1,
12494+8 2022, the baseline costs shall be an amount equal
12495+9 to $30.30 per megawatt-hour.
12496+10 (II) For the delivery year beginning June 1,
12497+11 2023, the baseline costs shall be an amount equal
12498+12 to $32.50 per megawatt-hour.
12499+13 (III) For the delivery year beginning June 1,
12500+14 2024, the baseline costs shall be an amount equal
12501+15 to $33.43 per megawatt-hour.
12502+16 (IV) For the delivery year beginning June 1,
12503+17 2025, the baseline costs shall be an amount equal
12504+18 to $33.50 per megawatt-hour.
12505+19 (V) For the delivery year beginning June 1,
12506+20 2026, the baseline costs shall be an amount equal
12507+21 to $34.50 per megawatt-hour.
12508+22 An Environmental Protection Agency consultant
12509+23 forecast, included in a report issued April 14, 2021,
12510+24 projects that a carbon-free energy resource has the
12511+25 opportunity to earn on average approximately $30.28
12512+26 per megawatt-hour, for the sale of energy and capacity
12513+
12514+
12515+
12516+
12517+
12518+ SB1699 Enrolled - 348 - LRB103 27684 AMQ 54061 b
12519+
12520+
12521+SB1699 Enrolled- 349 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 349 - LRB103 27684 AMQ 54061 b
12522+ SB1699 Enrolled - 349 - LRB103 27684 AMQ 54061 b
12523+1 during the time period between 2022 and 2027.
12524+2 Therefore, the sale of carbon mitigation credits
12525+3 provides the opportunity to receive an additional
12526+4 amount per megawatt-hour in addition to the projected
12527+5 prices for energy and capacity.
12528+6 Although actual energy and capacity prices may
12529+7 vary from year-to-year, the General Assembly finds
12530+8 that this customer protection cap will help ensure
12531+9 that the cost of carbon mitigation credits will be
12532+10 less than its value, based upon the social cost of
12533+11 carbon identified in the Technical Support Document
12534+12 issued in February 2021 by the U.S. Interagency
12535+13 Working Group on Social Cost of Greenhouse Gases and
12536+14 the PJM Interconnection, LLC carbon dioxide marginal
12537+15 emission rate for 2020, and that a carbon-free energy
12538+16 resource receiving payment for carbon mitigation
12539+17 credits receives no more than necessary to keep those
12540+18 units in operation.
12541+19 (D) No later than 7 days after the effective date of
12542+20 this amendatory Act of the 102nd General Assembly, the
12543+21 Agency shall publish its proposed carbon mitigation credit
12544+22 procurement plan. The Plan shall provide that winning bids
12545+23 shall be selected by taking into consideration which
12546+24 resources best match public interest criteria that
12547+25 include, but are not limited to, minimizing carbon dioxide
12548+26 emissions that result from electricity consumed in
12549+
12550+
12551+
12552+
12553+
12554+ SB1699 Enrolled - 349 - LRB103 27684 AMQ 54061 b
12555+
12556+
12557+SB1699 Enrolled- 350 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 350 - LRB103 27684 AMQ 54061 b
12558+ SB1699 Enrolled - 350 - LRB103 27684 AMQ 54061 b
12559+1 Illinois and minimizing sulfur dioxide, nitrogen oxide,
12560+2 and particulate matter emissions that adversely affect the
12561+3 citizens of this State. The selection of winning bids
12562+4 shall also take into account the incremental environmental
12563+5 benefits resulting from the procurement or procurements,
12564+6 such as any existing environmental benefits that are
12565+7 preserved by a procurement held under this subsection
12566+8 (d-10) and would cease to exist if the procurement were
12567+9 not held, including the preservation of carbon-free energy
12568+10 resources. For those bidders having the same public
12569+11 interest criteria score, the relative ranking of such
12570+12 bidders shall be determined by price. The Plan shall
12571+13 describe in detail how each public interest factor shall
12572+14 be considered and weighted in the bid selection process to
12573+15 ensure that the public interest criteria are applied to
12574+16 the procurement. The Plan shall, to the extent practical
12575+17 and permissible by federal law, ensure that successful
12576+18 bidders make commercially reasonable efforts to apply for
12577+19 federal tax credits, direct payments, or similar subsidy
12578+20 programs that support carbon-free generation and for which
12579+21 the successful bidder is eligible. Upon publishing of the
12580+22 carbon mitigation credit procurement plan, copies of the
12581+23 plan shall be posted and made publicly available on the
12582+24 Agency's website. All interested parties shall have 7 days
12583+25 following the date of posting to provide comment to the
12584+26 Agency on the plan. All comments shall be posted to the
12585+
12586+
12587+
12588+
12589+
12590+ SB1699 Enrolled - 350 - LRB103 27684 AMQ 54061 b
12591+
12592+
12593+SB1699 Enrolled- 351 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 351 - LRB103 27684 AMQ 54061 b
12594+ SB1699 Enrolled - 351 - LRB103 27684 AMQ 54061 b
12595+1 Agency's website. Following the end of the comment period,
12596+2 but no more than 19 days later than the effective date of
12597+3 this amendatory Act of the 102nd General Assembly, the
12598+4 Agency shall revise the plan as necessary based on the
12599+5 comments received and file its carbon mitigation credit
12600+6 procurement plan with the Commission.
12601+7 (E) If the Commission determines that the plan is
12602+8 likely to result in the procurement of cost-effective
12603+9 carbon mitigation credits, then the Commission shall,
12604+10 after notice and hearing and opportunity for comment, but
12605+11 no later than 42 days after the Agency filed the plan,
12606+12 approve the plan or approve it with modification. For
12607+13 purposes of this subsection (d-10), "cost-effective" means
12608+14 carbon mitigation credits that are procured from
12609+15 carbon-free energy resources at prices that are within the
12610+16 limits specified in this paragraph (3). As part of the
12611+17 Commission's review and acceptance or rejection of the
12612+18 procurement results, the Commission shall, in its public
12613+19 notice of successful bidders:
12614+20 (i) identify how the selected carbon-free energy
12615+21 resources satisfy the public interest criteria
12616+22 described in this paragraph (3) of minimizing carbon
12617+23 dioxide emissions that result from electricity
12618+24 consumed in Illinois and minimizing sulfur dioxide,
12619+25 nitrogen oxide, and particulate matter emissions that
12620+26 adversely affect the citizens of this State;
12621+
12622+
12623+
12624+
12625+
12626+ SB1699 Enrolled - 351 - LRB103 27684 AMQ 54061 b
12627+
12628+
12629+SB1699 Enrolled- 352 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 352 - LRB103 27684 AMQ 54061 b
12630+ SB1699 Enrolled - 352 - LRB103 27684 AMQ 54061 b
12631+1 (ii) specifically address how the selection of
12632+2 carbon-free energy resources takes into account the
12633+3 incremental environmental benefits resulting from the
12634+4 procurement, including any existing environmental
12635+5 benefits that are preserved by the procurements held
12636+6 under this amendatory Act of the 102nd General
12637+7 Assembly and would have ceased to exist if the
12638+8 procurements had not been held, such as the
12639+9 preservation of carbon-free energy resources;
12640+10 (iii) quantify the environmental benefit of
12641+11 preserving the carbon-free energy resources procured
12642+12 pursuant to this subsection (d-10), including the
12643+13 following:
12644+14 (I) an assessment value of avoided greenhouse
12645+15 gas emissions measured as the product of the
12646+16 carbon-free energy resources' output over the
12647+17 contract term, using generally accepted
12648+18 methodologies for the valuation of avoided
12649+19 emissions; and
12650+20 (II) an assessment of costs of replacement
12651+21 with other carbon-free energy resources and
12652+22 renewable energy resources, including wind and
12653+23 photovoltaic generation, based upon an assessment
12654+24 of the prices paid for renewable energy credits
12655+25 through programs and procurements conducted
12656+26 pursuant to subsection (c) of Section 1-75 of this
12657+
12658+
12659+
12660+
12661+
12662+ SB1699 Enrolled - 352 - LRB103 27684 AMQ 54061 b
12663+
12664+
12665+SB1699 Enrolled- 353 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 353 - LRB103 27684 AMQ 54061 b
12666+ SB1699 Enrolled - 353 - LRB103 27684 AMQ 54061 b
12667+1 Act, and the additional storage necessary to
12668+2 produce the same or similar capability of matching
12669+3 customer usage patterns.
12670+4 (F) The procurements described in this paragraph (3),
12671+5 including, but not limited to, the execution of all
12672+6 contracts procured, shall be completed no later than
12673+7 December 3, 2021. The procurement and plan approval
12674+8 processes required by this paragraph (3) shall be
12675+9 conducted in conjunction with the procurement and plan
12676+10 approval processes required by Section 16-111.5 of the
12677+11 Public Utilities Act, to the extent practicable. However,
12678+12 the Agency and Commission may, as appropriate, modify the
12679+13 various dates and timelines under this subparagraph and
12680+14 subparagraphs (D) and (E) of this paragraph (3) to meet
12681+15 the December 3, 2021 contract execution deadline.
12682+16 Following the completion of such procurements, and
12683+17 consistent with this paragraph (3), the Agency shall
12684+18 calculate the payments to be made under each contract in a
12685+19 timely fashion.
12686+20 (F-1) Costs incurred by the electric utility pursuant
12687+21 to a contract authorized by this subsection (d-10) shall
12688+22 be deemed prudently incurred and reasonable in amount, and
12689+23 the electric utility shall be entitled to full cost
12690+24 recovery pursuant to a tariff or tariffs filed with the
12691+25 Commission.
12692+26 (G) The counterparty electric utility shall retire all
12693+
12694+
12695+
12696+
12697+
12698+ SB1699 Enrolled - 353 - LRB103 27684 AMQ 54061 b
12699+
12700+
12701+SB1699 Enrolled- 354 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 354 - LRB103 27684 AMQ 54061 b
12702+ SB1699 Enrolled - 354 - LRB103 27684 AMQ 54061 b
12703+1 carbon mitigation credits used to comply with the
12704+2 requirements of this subsection (d-10).
12705+3 (H) If a carbon-free energy resource is sold to
12706+4 another owner, the rights, obligations, and commitments
12707+5 under this subsection (d-10) shall continue to the
12708+6 subsequent owner.
12709+7 (I) This subsection (d-10) shall become inoperative on
12710+8 January 1, 2028.
12711+9 (e) The draft procurement plans are subject to public
12712+10 comment, as required by Section 16-111.5 of the Public
12713+11 Utilities Act.
12714+12 (f) The Agency shall submit the final procurement plan to
12715+13 the Commission. The Agency shall revise a procurement plan if
12716+14 the Commission determines that it does not meet the standards
12717+15 set forth in Section 16-111.5 of the Public Utilities Act.
12718+16 (g) The Agency shall assess fees to each affected utility
12719+17 to recover the costs incurred in preparation of the annual
12720+18 procurement plan for the utility.
12721+19 (h) The Agency shall assess fees to each bidder to recover
12722+20 the costs incurred in connection with a competitive
12723+21 procurement process.
12724+22 (i) A renewable energy credit, carbon emission credit,
12725+23 zero emission credit, or carbon mitigation credit can only be
12726+24 used once to comply with a single portfolio or other standard
12727+25 as set forth in subsection (c), subsection (d), or subsection
12728+26 (d-5) of this Section, respectively. A renewable energy
12729+
12730+
12731+
12732+
12733+
12734+ SB1699 Enrolled - 354 - LRB103 27684 AMQ 54061 b
12735+
12736+
12737+SB1699 Enrolled- 355 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 355 - LRB103 27684 AMQ 54061 b
12738+ SB1699 Enrolled - 355 - LRB103 27684 AMQ 54061 b
12739+1 credit, carbon emission credit, zero emission credit, or
12740+2 carbon mitigation credit cannot be used to satisfy the
12741+3 requirements of more than one standard. If more than one type
12742+4 of credit is issued for the same megawatt hour of energy, only
12743+5 one credit can be used to satisfy the requirements of a single
12744+6 standard. After such use, the credit must be retired together
12745+7 with any other credits issued for the same megawatt hour of
12746+8 energy.
12747+9 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
12748+10 (20 ILCS 3855/1-129 new)
12749+11 Sec. 1-129. Policy study.
12750+12 (a) The General Assembly finds that:
12751+13 (1) in 2021, Illinois became the first state in the
12752+14 Midwest to mandate a clean energy future when it enacted
12753+15 the Climate and Equitable Jobs Act (Public Act 102-662);
12754+16 (2) through the Climate and Equitable Jobs Act,
12755+17 Illinois established a plan to completely decarbonize its
12756+18 energy sector by 2050 in an equitable manner that invests
12757+19 in the State's workforce;
12758+20 (3) technology in the energy sector continues to
12759+21 advance creating cleaner and more efficient options to
12760+22 help the State attain the target of 50% renewable energy
12761+23 by 2040; and
12762+24 (4) while numerous legislative proposals purport to
12763+25 help the State on its path to equitably attain 100% clean
12764+
12765+
12766+
12767+
12768+
12769+ SB1699 Enrolled - 355 - LRB103 27684 AMQ 54061 b
12770+
12771+
12772+SB1699 Enrolled- 356 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 356 - LRB103 27684 AMQ 54061 b
12773+ SB1699 Enrolled - 356 - LRB103 27684 AMQ 54061 b
12774+1 energy, it is important to have a neutral party with
12775+2 relevant expertise evaluate each proposal to ensure it is
12776+3 consistent with the State's goals and maximizes benefits
12777+4 to Illinois residents.
12778+5 (b) The General Assembly intends:
12779+6 (1) to prioritize the public interest over the profit
12780+7 motives of utilities and private developers; and
12781+8 (2) to invest in projects that reduce harmful
12782+9 emissions and contribute to the clean economy.
12783+10 (c) The Agency shall commission and publish a policy study
12784+11 to evaluate the potential impacts of the proposals described
12785+12 in subsection (g). The potential impacts may include, but are
12786+13 not limited to, support for Illinois' decarbonization goals,
12787+14 the environment, grid reliability, carbon and other pollutant
12788+15 emissions, resource adequacy, long-term and short-term
12789+16 electric rates, environmental justice communities, jobs, and
12790+17 the economy. Where applicable, the study shall address the
12791+18 impact of a proposal with respect to reports by the
12792+19 Midcontinent Independent System Operator, PJM, and North
12793+20 American Electric Reliability Corporation staff that Illinois
12794+21 has begun to experience resource adequacy issues.
12795+22 (d) The Agency shall retain the services of technical and
12796+23 policy experts with energy market and other relevant fields of
12797+24 expertise. The technical and policy experts may include the
12798+25 existing planning and procurement consultant and applicable
12799+26 subcontractors and the procurement administrator and
12800+
12801+
12802+
12803+
12804+
12805+ SB1699 Enrolled - 356 - LRB103 27684 AMQ 54061 b
12806+
12807+
12808+SB1699 Enrolled- 357 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 357 - LRB103 27684 AMQ 54061 b
12809+ SB1699 Enrolled - 357 - LRB103 27684 AMQ 54061 b
12810+1 applicable subcontractors. The Illinois Commerce Commission,
12811+2 the Illinois Environmental Protection Agency, and the
12812+3 Department of Commerce and Economic Opportunity shall provide
12813+4 support to and consult with the Agency. The Agency may consult
12814+5 with other State agencies, commissions, or task forces as
12815+6 needed. The Agency may consult with and seek assistance from
12816+7 the Regional Transmission Organizations PJM and MISO.
12817+8 (e) The Agency may solicit information, including
12818+9 confidential or proprietary information, from entities likely
12819+10 to be impacted by the proposals described in subsection (g)
12820+11 for purposes of this study. Any information designated as
12821+12 confidential or proprietary information by the entity
12822+13 providing the information shall be kept confidential by the
12823+14 Agency, its consultants, and its contractors and is not
12824+15 subject to disclosure under the Freedom of Information Act.
12825+16 (f) The Agency shall publish a final policy study no later
12826+17 than March 1, 2024 and suitable copies shall be delivered to
12827+18 the Governor and members of the General Assembly. Prior to
12828+19 publishing the final policy study, the Agency shall publish a
12829+20 preliminary draft of the policy study and provide for a 20-day
12830+21 open public comment period. The Agency shall review public
12831+22 comments and publish a final policy study no later than 20 days
12832+23 after the public comment period ends. The policy study shall
12833+24 include policy recommendations to the General Assembly.
12834+25 (g) The policy study shall evaluate the following
12835+26 proposals and may consider or suggest additional or
12836+
12837+
12838+
12839+
12840+
12841+ SB1699 Enrolled - 357 - LRB103 27684 AMQ 54061 b
12842+
12843+
12844+SB1699 Enrolled- 358 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 358 - LRB103 27684 AMQ 54061 b
12845+ SB1699 Enrolled - 358 - LRB103 27684 AMQ 54061 b
12846+1 alternative items:
12847+2 (1) House Bill 2132 of the 103rd General Assembly as
12848+3 it passed out of the House on March 24, 2023 or a similar
12849+4 pilot program to establish one new utility-scale offshore
12850+5 wind project capable of producing at least 700,000
12851+6 megawatt hours annually for at least 20 years in Lake
12852+7 Michigan that includes an equity and inclusion plan to
12853+8 create job opportunities for underrepresented populations
12854+9 in addition to equity investment eligible communities and
12855+10 a fully executed project labor agreement. The pilot
12856+11 program may result in an increase in the amounts paid by
12857+12 eligible retail customers in connection with electric
12858+13 service that shall not exceed 0.25% of the amount paid per
12859+14 kilowatt hour by those customers during the year ending
12860+15 May 31, 2009.
12861+16 (2) Senate Bill 1587 and amendments to Senate Bill
12862+17 1587 of the 103rd General Assembly filed prior to May 31,
12863+18 2023 or a similar proposal for the deployment of energy
12864+19 storage systems supported by the State through the
12865+20 development of energy storage credit targets for the
12866+21 Agency to procure on behalf of Illinois electric utilities
12867+22 from privately owned, large scale energy storage providers
12868+23 using energy storage contracts of at least 15 year
12869+24 durations based on a competitive energy storage
12870+25 procurement plan developed by the Agency designed to
12871+26 enhance overall grid reliability, flexibility and
12872+
12873+
12874+
12875+
12876+
12877+ SB1699 Enrolled - 358 - LRB103 27684 AMQ 54061 b
12878+
12879+
12880+SB1699 Enrolled- 359 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 359 - LRB103 27684 AMQ 54061 b
12881+ SB1699 Enrolled - 359 - LRB103 27684 AMQ 54061 b
12882+1 efficiency, and to lower electricity prices. The plan must
12883+2 require participants to comply with the equity
12884+3 accountability system requirements in subsection (c-10) of
12885+4 Section 1-75 and to submit proof of project labor
12886+5 agreements. For purposes of this policy study, it should
12887+6 be assumed that the costs associated with procuring energy
12888+7 storage credits shall be recovered through tariffed
12889+8 charges assessed across all retail customers in a uniform
12890+9 cents per kilowatt hour charge. In addition to large scale
12891+10 energy storage, the proposal shall also include the
12892+11 creation of distributed level energy storage programs
12893+12 through utility tariffs as approved by the Illinois
12894+13 Commerce Commission. The programs shall include a
12895+14 residential and a commercial storage program that would
12896+15 allow customer-sited batteries to provide grid benefits
12897+16 and cost-savings to ratepayers. The proposal shall also
12898+17 include a community solar energy storage program intended
12899+18 to serve as a peak reduction program by utilizing
12900+19 community solar paired storage projects deployed daily in
12901+20 summer months during peak hours. The installation of the
12902+21 energy storage systems associated with these distributed
12903+22 renewable systems must comply with the prevailing wage
12904+23 requirements described in subparagraph (Q) of paragraph
12905+24 (1) of subsection (c) of Section 1-75. The policy study
12906+25 shall include a review of the ability of coal-fueled
12907+26 generating plant sites located in Illinois that have been
12908+
12909+
12910+
12911+
12912+
12913+ SB1699 Enrolled - 359 - LRB103 27684 AMQ 54061 b
12914+
12915+
12916+SB1699 Enrolled- 360 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 360 - LRB103 27684 AMQ 54061 b
12917+ SB1699 Enrolled - 360 - LRB103 27684 AMQ 54061 b
12918+1 closed since 2016 or are scheduled to be closed by 2030 to
12919+2 support the installation of energy storage systems and
12920+3 potential associated interconnection costs. This review
12921+4 shall include: (i) whether those sites are already in a
12922+5 regional transmission organization interconnection queue,
12923+6 including MISO's replacement power interconnection queue,
12924+7 or would be submitted to the replacement power
12925+8 interconnection queue no later than September 1, 2023,
12926+9 and, if a site is in a queue, the site's position in the
12927+10 queue; and (ii) how soon those sites could support
12928+11 development and installation of energy storage systems and
12929+12 any barriers to that development. This review shall also
12930+13 include consultation with electric generation facility
12931+14 owners or operators and renewable developers that own or
12932+15 are in the process of developing energy storage systems in
12933+16 Illinois or that have experience developing energy storage
12934+17 systems in other States.
12935+18 (3) A policy establishing high voltage direct current
12936+19 renewable energy credits that requires the Agency to
12937+20 procure contracts with at least 25 years but no more than
12938+21 40 years duration for the delivery of renewable energy
12939+22 credits on behalf of electric utilities in Illinois with
12940+23 at least 300,000 customers from a high voltage direct
12941+24 current transmission facility with more than 100 miles of
12942+25 underground transmission lines in this State capable of
12943+26 transmitting electricity at or above 525 kilovolts and
12944+
12945+
12946+
12947+
12948+
12949+ SB1699 Enrolled - 360 - LRB103 27684 AMQ 54061 b
12950+
12951+
12952+SB1699 Enrolled- 361 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 361 - LRB103 27684 AMQ 54061 b
12953+ SB1699 Enrolled - 361 - LRB103 27684 AMQ 54061 b
12954+1 delivering power in the PJM market. High voltage direct
12955+2 current renewable energy credits procured by the Agency
12956+3 pursuant to this policy would not count toward the
12957+4 renewable energy credit purchase targets in subsection (c)
12958+5 of Section 1-75. The study shall also evaluate: (i) this
12959+6 policy's potential for wholesale electricity price impacts
12960+7 in both PJM and MISO, the net rate impact to Illinois
12961+8 ratepayers, and the impact on grid reliability and
12962+9 resilience; (ii) whether a 25-year to 40-year guaranteed
12963+10 contract is necessary to build a high voltage direct
12964+11 current transmission facility; (iii) whether specific high
12965+12 voltage direct current transmission facility projects are
12966+13 committed to Illinois' fair labor and equity standards;
12967+14 and (iv) whether the policy creates incentives for
12968+15 renewable development outside of Illinois rather than
12969+16 within the State.
12970+17 Section 15. The Illinois Procurement Code is amended by
12971+18 changing Section 1-10 as follows:
12972+19 (30 ILCS 500/1-10)
12973+20 Sec. 1-10. Application.
12974+21 (a) This Code applies only to procurements for which
12975+22 bidders, offerors, potential contractors, or contractors were
12976+23 first solicited on or after July 1, 1998. This Code shall not
12977+24 be construed to affect or impair any contract, or any
12978+
12979+
12980+
12981+
12982+
12983+ SB1699 Enrolled - 361 - LRB103 27684 AMQ 54061 b
12984+
12985+
12986+SB1699 Enrolled- 362 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 362 - LRB103 27684 AMQ 54061 b
12987+ SB1699 Enrolled - 362 - LRB103 27684 AMQ 54061 b
12988+1 provision of a contract, entered into based on a solicitation
12989+2 prior to the implementation date of this Code as described in
12990+3 Article 99, including, but not limited to, any covenant
12991+4 entered into with respect to any revenue bonds or similar
12992+5 instruments. All procurements for which contracts are
12993+6 solicited between the effective date of Articles 50 and 99 and
12994+7 July 1, 1998 shall be substantially in accordance with this
12995+8 Code and its intent.
12996+9 (b) This Code shall apply regardless of the source of the
12997+10 funds with which the contracts are paid, including federal
12998+11 assistance moneys. This Code shall not apply to:
12999+12 (1) Contracts between the State and its political
13000+13 subdivisions or other governments, or between State
13001+14 governmental bodies, except as specifically provided in
13002+15 this Code.
13003+16 (2) Grants, except for the filing requirements of
13004+17 Section 20-80.
13005+18 (3) Purchase of care, except as provided in Section
13006+19 5-30.6 of the Illinois Public Aid Code and this Section.
13007+20 (4) Hiring of an individual as an employee and not as
13008+21 an independent contractor, whether pursuant to an
13009+22 employment code or policy or by contract directly with
13010+23 that individual.
13011+24 (5) Collective bargaining contracts.
13012+25 (6) Purchase of real estate, except that notice of
13013+26 this type of contract with a value of more than $25,000
13014+
13015+
13016+
13017+
13018+
13019+ SB1699 Enrolled - 362 - LRB103 27684 AMQ 54061 b
13020+
13021+
13022+SB1699 Enrolled- 363 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 363 - LRB103 27684 AMQ 54061 b
13023+ SB1699 Enrolled - 363 - LRB103 27684 AMQ 54061 b
13024+1 must be published in the Procurement Bulletin within 10
13025+2 calendar days after the deed is recorded in the county of
13026+3 jurisdiction. The notice shall identify the real estate
13027+4 purchased, the names of all parties to the contract, the
13028+5 value of the contract, and the effective date of the
13029+6 contract.
13030+7 (7) Contracts necessary to prepare for anticipated
13031+8 litigation, enforcement actions, or investigations,
13032+9 provided that the chief legal counsel to the Governor
13033+10 shall give his or her prior approval when the procuring
13034+11 agency is one subject to the jurisdiction of the Governor,
13035+12 and provided that the chief legal counsel of any other
13036+13 procuring entity subject to this Code shall give his or
13037+14 her prior approval when the procuring entity is not one
13038+15 subject to the jurisdiction of the Governor.
13039+16 (8) (Blank).
13040+17 (9) Procurement expenditures by the Illinois
13041+18 Conservation Foundation when only private funds are used.
13042+19 (10) (Blank).
13043+20 (11) Public-private agreements entered into according
13044+21 to the procurement requirements of Section 20 of the
13045+22 Public-Private Partnerships for Transportation Act and
13046+23 design-build agreements entered into according to the
13047+24 procurement requirements of Section 25 of the
13048+25 Public-Private Partnerships for Transportation Act.
13049+26 (12) (A) Contracts for legal, financial, and other
13050+
13051+
13052+
13053+
13054+
13055+ SB1699 Enrolled - 363 - LRB103 27684 AMQ 54061 b
13056+
13057+
13058+SB1699 Enrolled- 364 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 364 - LRB103 27684 AMQ 54061 b
13059+ SB1699 Enrolled - 364 - LRB103 27684 AMQ 54061 b
13060+1 professional and artistic services entered into by the
13061+2 Illinois Finance Authority in which the State of Illinois
13062+3 is not obligated. Such contracts shall be awarded through
13063+4 a competitive process authorized by the members of the
13064+5 Illinois Finance Authority and are subject to Sections
13065+6 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,
13066+7 as well as the final approval by the members of the
13067+8 Illinois Finance Authority of the terms of the contract.
13068+9 (B) Contracts for legal and financial services entered
13069+10 into by the Illinois Housing Development Authority in
13070+11 connection with the issuance of bonds in which the State
13071+12 of Illinois is not obligated. Such contracts shall be
13072+13 awarded through a competitive process authorized by the
13073+14 members of the Illinois Housing Development Authority and
13074+15 are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
13075+16 and 50-37 of this Code, as well as the final approval by
13076+17 the members of the Illinois Housing Development Authority
13077+18 of the terms of the contract.
13078+19 (13) Contracts for services, commodities, and
13079+20 equipment to support the delivery of timely forensic
13080+21 science services in consultation with and subject to the
13081+22 approval of the Chief Procurement Officer as provided in
13082+23 subsection (d) of Section 5-4-3a of the Unified Code of
13083+24 Corrections, except for the requirements of Sections
13084+25 20-60, 20-65, 20-70, and 20-160 and Article 50 of this
13085+26 Code; however, the Chief Procurement Officer may, in
13086+
13087+
13088+
13089+
13090+
13091+ SB1699 Enrolled - 364 - LRB103 27684 AMQ 54061 b
13092+
13093+
13094+SB1699 Enrolled- 365 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 365 - LRB103 27684 AMQ 54061 b
13095+ SB1699 Enrolled - 365 - LRB103 27684 AMQ 54061 b
13096+1 writing with justification, waive any certification
13097+2 required under Article 50 of this Code. For any contracts
13098+3 for services which are currently provided by members of a
13099+4 collective bargaining agreement, the applicable terms of
13100+5 the collective bargaining agreement concerning
13101+6 subcontracting shall be followed.
13102+7 On and after January 1, 2019, this paragraph (13),
13103+8 except for this sentence, is inoperative.
13104+9 (14) Contracts for participation expenditures required
13105+10 by a domestic or international trade show or exhibition of
13106+11 an exhibitor, member, or sponsor.
13107+12 (15) Contracts with a railroad or utility that
13108+13 requires the State to reimburse the railroad or utilities
13109+14 for the relocation of utilities for construction or other
13110+15 public purpose. Contracts included within this paragraph
13111+16 (15) shall include, but not be limited to, those
13112+17 associated with: relocations, crossings, installations,
13113+18 and maintenance. For the purposes of this paragraph (15),
13114+19 "railroad" means any form of non-highway ground
13115+20 transportation that runs on rails or electromagnetic
13116+21 guideways and "utility" means: (1) public utilities as
13117+22 defined in Section 3-105 of the Public Utilities Act, (2)
13118+23 telecommunications carriers as defined in Section 13-202
13119+24 of the Public Utilities Act, (3) electric cooperatives as
13120+25 defined in Section 3.4 of the Electric Supplier Act, (4)
13121+26 telephone or telecommunications cooperatives as defined in
13122+
13123+
13124+
13125+
13126+
13127+ SB1699 Enrolled - 365 - LRB103 27684 AMQ 54061 b
13128+
13129+
13130+SB1699 Enrolled- 366 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 366 - LRB103 27684 AMQ 54061 b
13131+ SB1699 Enrolled - 366 - LRB103 27684 AMQ 54061 b
13132+1 Section 13-212 of the Public Utilities Act, (5) rural
13133+2 water or waste water systems with 10,000 connections or
13134+3 less, (6) a holder as defined in Section 21-201 of the
13135+4 Public Utilities Act, and (7) municipalities owning or
13136+5 operating utility systems consisting of public utilities
13137+6 as that term is defined in Section 11-117-2 of the
13138+7 Illinois Municipal Code.
13139+8 (16) Procurement expenditures necessary for the
13140+9 Department of Public Health to provide the delivery of
13141+10 timely newborn screening services in accordance with the
13142+11 Newborn Metabolic Screening Act.
13143+12 (17) Procurement expenditures necessary for the
13144+13 Department of Agriculture, the Department of Financial and
13145+14 Professional Regulation, the Department of Human Services,
13146+15 and the Department of Public Health to implement the
13147+16 Compassionate Use of Medical Cannabis Program and Opioid
13148+17 Alternative Pilot Program requirements and ensure access
13149+18 to medical cannabis for patients with debilitating medical
13150+19 conditions in accordance with the Compassionate Use of
13151+20 Medical Cannabis Program Act.
13152+21 (18) This Code does not apply to any procurements
13153+22 necessary for the Department of Agriculture, the
13154+23 Department of Financial and Professional Regulation, the
13155+24 Department of Human Services, the Department of Commerce
13156+25 and Economic Opportunity, and the Department of Public
13157+26 Health to implement the Cannabis Regulation and Tax Act if
13158+
13159+
13160+
13161+
13162+
13163+ SB1699 Enrolled - 366 - LRB103 27684 AMQ 54061 b
13164+
13165+
13166+SB1699 Enrolled- 367 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 367 - LRB103 27684 AMQ 54061 b
13167+ SB1699 Enrolled - 367 - LRB103 27684 AMQ 54061 b
13168+1 the applicable agency has made a good faith determination
13169+2 that it is necessary and appropriate for the expenditure
13170+3 to fall within this exemption and if the process is
13171+4 conducted in a manner substantially in accordance with the
13172+5 requirements of Sections 20-160, 25-60, 30-22, 50-5,
13173+6 50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
13174+7 50-36, 50-37, 50-38, and 50-50 of this Code; however, for
13175+8 Section 50-35, compliance applies only to contracts or
13176+9 subcontracts over $100,000. Notice of each contract
13177+10 entered into under this paragraph (18) that is related to
13178+11 the procurement of goods and services identified in
13179+12 paragraph (1) through (9) of this subsection shall be
13180+13 published in the Procurement Bulletin within 14 calendar
13181+14 days after contract execution. The Chief Procurement
13182+15 Officer shall prescribe the form and content of the
13183+16 notice. Each agency shall provide the Chief Procurement
13184+17 Officer, on a monthly basis, in the form and content
13185+18 prescribed by the Chief Procurement Officer, a report of
13186+19 contracts that are related to the procurement of goods and
13187+20 services identified in this subsection. At a minimum, this
13188+21 report shall include the name of the contractor, a
13189+22 description of the supply or service provided, the total
13190+23 amount of the contract, the term of the contract, and the
13191+24 exception to this Code utilized. A copy of any or all of
13192+25 these contracts shall be made available to the Chief
13193+26 Procurement Officer immediately upon request. The Chief
13194+
13195+
13196+
13197+
13198+
13199+ SB1699 Enrolled - 367 - LRB103 27684 AMQ 54061 b
13200+
13201+
13202+SB1699 Enrolled- 368 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 368 - LRB103 27684 AMQ 54061 b
13203+ SB1699 Enrolled - 368 - LRB103 27684 AMQ 54061 b
13204+1 Procurement Officer shall submit a report to the Governor
13205+2 and General Assembly no later than November 1 of each year
13206+3 that includes, at a minimum, an annual summary of the
13207+4 monthly information reported to the Chief Procurement
13208+5 Officer. This exemption becomes inoperative 5 years after
13209+6 June 25, 2019 (the effective date of Public Act 101-27).
13210+7 (19) Acquisition of modifications or adjustments,
13211+8 limited to assistive technology devices and assistive
13212+9 technology services, adaptive equipment, repairs, and
13213+10 replacement parts to provide reasonable accommodations (i)
13214+11 that enable a qualified applicant with a disability to
13215+12 complete the job application process and be considered for
13216+13 the position such qualified applicant desires, (ii) that
13217+14 modify or adjust the work environment to enable a
13218+15 qualified current employee with a disability to perform
13219+16 the essential functions of the position held by that
13220+17 employee, (iii) to enable a qualified current employee
13221+18 with a disability to enjoy equal benefits and privileges
13222+19 of employment as are enjoyed by other similarly situated
13223+20 employees without disabilities, and (iv) that allow a
13224+21 customer, client, claimant, or member of the public
13225+22 seeking State services full use and enjoyment of and
13226+23 access to its programs, services, or benefits.
13227+24 For purposes of this paragraph (19):
13228+25 "Assistive technology devices" means any item, piece
13229+26 of equipment, or product system, whether acquired
13230+
13231+
13232+
13233+
13234+
13235+ SB1699 Enrolled - 368 - LRB103 27684 AMQ 54061 b
13236+
13237+
13238+SB1699 Enrolled- 369 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 369 - LRB103 27684 AMQ 54061 b
13239+ SB1699 Enrolled - 369 - LRB103 27684 AMQ 54061 b
13240+1 commercially off the shelf, modified, or customized, that
13241+2 is used to increase, maintain, or improve functional
13242+3 capabilities of individuals with disabilities.
13243+4 "Assistive technology services" means any service that
13244+5 directly assists an individual with a disability in
13245+6 selection, acquisition, or use of an assistive technology
13246+7 device.
13247+8 "Qualified" has the same meaning and use as provided
13248+9 under the federal Americans with Disabilities Act when
13249+10 describing an individual with a disability.
13250+11 (20) Procurement expenditures necessary for the
13251+12 Illinois Commerce Commission to hire third-party
13252+13 facilitators pursuant to Sections 16-105.17 and 16-108.18
13253+14 of the Public Utilities Act or an ombudsman pursuant to
13254+15 Section 16-107.5 of the Public Utilities Act, a
13255+16 facilitator pursuant to Section 16-105.17 of the Public
13256+17 Utilities Act, or a grid auditor pursuant to Section
13257+18 16-105.10 of the Public Utilities Act.
13258+19 (21) Procurement expenditures for the purchase,
13259+20 renewal, and expansion of software, software licenses, or
13260+21 software maintenance agreements that support the efforts
13261+22 of the Illinois State Police to enforce, regulate, and
13262+23 administer the Firearm Owners Identification Card Act, the
13263+24 Firearm Concealed Carry Act, the Firearms Restraining
13264+25 Order Act, the Firearm Dealer License Certification Act,
13265+26 the Law Enforcement Agencies Data System (LEADS), the
13266+
13267+
13268+
13269+
13270+
13271+ SB1699 Enrolled - 369 - LRB103 27684 AMQ 54061 b
13272+
13273+
13274+SB1699 Enrolled- 370 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 370 - LRB103 27684 AMQ 54061 b
13275+ SB1699 Enrolled - 370 - LRB103 27684 AMQ 54061 b
13276+1 Uniform Crime Reporting Act, the Criminal Identification
13277+2 Act, the Illinois Uniform Conviction Information Act, and
13278+3 the Gun Trafficking Information Act, or establish or
13279+4 maintain record management systems necessary to conduct
13280+5 human trafficking investigations or gun trafficking or
13281+6 other stolen firearm investigations. This paragraph (21)
13282+7 applies to contracts entered into on or after January 10,
13283+8 2023 (the effective date of Public Act 102-1116) this
13284+9 amendatory Act of the 102nd General Assembly and the
13285+10 renewal of contracts that are in effect on January 10,
13286+11 2023 (the effective date of Public Act 102-1116) this
13287+12 amendatory Act of the 102nd General Assembly.
13288+13 (22) Contracts for project management services and
13289+14 system integration services required for the completion of
13290+15 the State's enterprise resource planning project. This
13291+16 exemption becomes inoperative 5 years after June 7, 2023
13292+17 (the effective date of the changes made to this Section by
13293+18 Public Act 103-8) this amendatory Act of the 103rd General
13294+19 Assembly. This paragraph (22) applies to contracts entered
13295+20 into on or after June 7, 2023 (the effective date of the
13296+21 changes made to this Section by Public Act 103-8) this
13297+22 amendatory Act of the 103rd General Assembly and the
13298+23 renewal of contracts that are in effect on June 7, 2023
13299+24 (the effective date of the changes made to this Section by
13300+25 Public Act 103-8) this amendatory Act of the 103rd General
13301+26 Assembly.
13302+
13303+
13304+
13305+
13306+
13307+ SB1699 Enrolled - 370 - LRB103 27684 AMQ 54061 b
13308+
13309+
13310+SB1699 Enrolled- 371 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 371 - LRB103 27684 AMQ 54061 b
13311+ SB1699 Enrolled - 371 - LRB103 27684 AMQ 54061 b
13312+1 (23) (22) Procurements necessary for the Department of
13313+2 Insurance to implement the Illinois Health Benefits
13314+3 Exchange Law if the Department of Insurance has made a
13315+4 good faith determination that it is necessary and
13316+5 appropriate for the expenditure to fall within this
13317+6 exemption. The procurement process shall be conducted in a
13318+7 manner substantially in accordance with the requirements
13319+8 of Sections 20-160 and 25-60 and Article 50 of this Code. A
13320+9 copy of these contracts shall be made available to the
13321+10 Chief Procurement Officer immediately upon request. This
13322+11 paragraph is inoperative 5 years after June 27, 2023 (the
13323+12 effective date of Public Act 103-103) this amendatory Act
13324+13 of the 103rd General Assembly.
13325+14 Notwithstanding any other provision of law, for contracts
13326+15 with an annual value of more than $100,000 entered into on or
13327+16 after October 1, 2017 under an exemption provided in any
13328+17 paragraph of this subsection (b), except paragraph (1), (2),
13329+18 or (5), each State agency shall post to the appropriate
13330+19 procurement bulletin the name of the contractor, a description
13331+20 of the supply or service provided, the total amount of the
13332+21 contract, the term of the contract, and the exception to the
13333+22 Code utilized. The chief procurement officer shall submit a
13334+23 report to the Governor and General Assembly no later than
13335+24 November 1 of each year that shall include, at a minimum, an
13336+25 annual summary of the monthly information reported to the
13337+26 chief procurement officer.
13338+
13339+
13340+
13341+
13342+
13343+ SB1699 Enrolled - 371 - LRB103 27684 AMQ 54061 b
13344+
13345+
13346+SB1699 Enrolled- 372 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 372 - LRB103 27684 AMQ 54061 b
13347+ SB1699 Enrolled - 372 - LRB103 27684 AMQ 54061 b
13348+1 (c) This Code does not apply to the electric power
13349+2 procurement process provided for under Section 1-75 of the
13350+3 Illinois Power Agency Act and Section 16-111.5 of the Public
13351+4 Utilities Act. This Code does not apply to the procurement of
13352+5 technical and policy experts pursuant to Section 1-129 of the
13353+6 Illinois Power Agency Act.
13354+7 (d) Except for Section 20-160 and Article 50 of this Code,
13355+8 and as expressly required by Section 9.1 of the Illinois
13356+9 Lottery Law, the provisions of this Code do not apply to the
13357+10 procurement process provided for under Section 9.1 of the
13358+11 Illinois Lottery Law.
13359+12 (e) This Code does not apply to the process used by the
13360+13 Capital Development Board to retain a person or entity to
13361+14 assist the Capital Development Board with its duties related
13362+15 to the determination of costs of a clean coal SNG brownfield
13363+16 facility, as defined by Section 1-10 of the Illinois Power
13364+17 Agency Act, as required in subsection (h-3) of Section 9-220
13365+18 of the Public Utilities Act, including calculating the range
13366+19 of capital costs, the range of operating and maintenance
13367+20 costs, or the sequestration costs or monitoring the
13368+21 construction of clean coal SNG brownfield facility for the
13369+22 full duration of construction.
13370+23 (f) (Blank).
13371+24 (g) (Blank).
13372+25 (h) This Code does not apply to the process to procure or
13373+26 contracts entered into in accordance with Sections 11-5.2 and
13374+
13375+
13376+
13377+
13378+
13379+ SB1699 Enrolled - 372 - LRB103 27684 AMQ 54061 b
13380+
13381+
13382+SB1699 Enrolled- 373 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 373 - LRB103 27684 AMQ 54061 b
13383+ SB1699 Enrolled - 373 - LRB103 27684 AMQ 54061 b
13384+1 11-5.3 of the Illinois Public Aid Code.
13385+2 (i) Each chief procurement officer may access records
13386+3 necessary to review whether a contract, purchase, or other
13387+4 expenditure is or is not subject to the provisions of this
13388+5 Code, unless such records would be subject to attorney-client
13389+6 privilege.
13390+7 (j) This Code does not apply to the process used by the
13391+8 Capital Development Board to retain an artist or work or works
13392+9 of art as required in Section 14 of the Capital Development
13393+10 Board Act.
13394+11 (k) This Code does not apply to the process to procure
13395+12 contracts, or contracts entered into, by the State Board of
13396+13 Elections or the State Electoral Board for hearing officers
13397+14 appointed pursuant to the Election Code.
13398+15 (l) This Code does not apply to the processes used by the
13399+16 Illinois Student Assistance Commission to procure supplies and
13400+17 services paid for from the private funds of the Illinois
13401+18 Prepaid Tuition Fund. As used in this subsection (l), "private
13402+19 funds" means funds derived from deposits paid into the
13403+20 Illinois Prepaid Tuition Trust Fund and the earnings thereon.
13404+21 (m) This Code shall apply regardless of the source of
13405+22 funds with which contracts are paid, including federal
13406+23 assistance moneys. Except as specifically provided in this
13407+24 Code, this Code shall not apply to procurement expenditures
13408+25 necessary for the Department of Public Health to conduct the
13409+26 Healthy Illinois Survey in accordance with Section 2310-431 of
13410+
13411+
13412+
13413+
13414+
13415+ SB1699 Enrolled - 373 - LRB103 27684 AMQ 54061 b
13416+
13417+
13418+SB1699 Enrolled- 374 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 374 - LRB103 27684 AMQ 54061 b
13419+ SB1699 Enrolled - 374 - LRB103 27684 AMQ 54061 b
13420+1 the Department of Public Health Powers and Duties Law of the
13421+2 Civil Administrative Code of Illinois.
13422+3 (Source: P.A. 102-175, eff. 7-29-21; 102-483, eff 1-1-22;
13423+4 102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff.
13424+5 9-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22;
13425+6 102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-103, eff.
13426+7 6-27-23; revised 9-5-23.)
13427+8 Section 20. The Counties Code is amended by changing
13428+9 Section 5-12020 as follows:
13429+10 (55 ILCS 5/5-12020)
13430+11 Sec. 5-12020. Commercial wind energy facilities and
13431+12 commercial solar energy facilities.
13432+13 (a) As used in this Section:
13433+14 "Commercial solar energy facility" means a "commercial
13434+15 solar energy system" as defined in Section 10-720 of the
13435+16 Property Tax Code. "Commercial solar energy facility" does not
13436+17 mean a utility-scale solar energy facility being constructed
13437+18 at a site that was eligible to participate in a procurement
13438+19 event conducted by the Illinois Power Agency pursuant to
13439+20 subsection (c-5) of Section 1-75 of the Illinois Power Agency
13440+21 Act.
13441+22 "Commercial wind energy facility" means a wind energy
13442+23 conversion facility of equal or greater than 500 kilowatts in
13443+24 total nameplate generating capacity. "Commercial wind energy
13444+
13445+
13446+
13447+
13448+
13449+ SB1699 Enrolled - 374 - LRB103 27684 AMQ 54061 b
13450+
13451+
13452+SB1699 Enrolled- 375 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 375 - LRB103 27684 AMQ 54061 b
13453+ SB1699 Enrolled - 375 - LRB103 27684 AMQ 54061 b
13454+1 facility" includes a wind energy conversion facility seeking
13455+2 an extension of a permit to construct granted by a county or
13456+3 municipality before January 27, 2023 (the effective date of
13457+4 Public Act 102-1123) this amendatory Act of the 102nd General
13458+5 Assembly.
13459+6 "Facility owner" means (i) a person with a direct
13460+7 ownership interest in a commercial wind energy facility or a
13461+8 commercial solar energy facility, or both, regardless of
13462+9 whether the person is involved in acquiring the necessary
13463+10 rights, permits, and approvals or otherwise planning for the
13464+11 construction and operation of the facility, and (ii) at the
13465+12 time the facility is being developed, a person who is acting as
13466+13 a developer of the facility by acquiring the necessary rights,
13467+14 permits, and approvals or by planning for the construction and
13468+15 operation of the facility, regardless of whether the person
13469+16 will own or operate the facility.
13470+17 "Nonparticipating property" means real property that is
13471+18 not a participating property.
13472+19 "Nonparticipating residence" means a residence that is
13473+20 located on nonparticipating property and that is existing and
13474+21 occupied on the date that an application for a permit to
13475+22 develop the commercial wind energy facility or the commercial
13476+23 solar energy facility is filed with the county.
13477+24 "Occupied community building" means any one or more of the
13478+25 following buildings that is existing and occupied on the date
13479+26 that the application for a permit to develop the commercial
13480+
13481+
13482+
13483+
13484+
13485+ SB1699 Enrolled - 375 - LRB103 27684 AMQ 54061 b
13486+
13487+
13488+SB1699 Enrolled- 376 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 376 - LRB103 27684 AMQ 54061 b
13489+ SB1699 Enrolled - 376 - LRB103 27684 AMQ 54061 b
13490+1 wind energy facility or the commercial solar energy facility
13491+2 is filed with the county: a school, place of worship, day care
13492+3 facility, public library, or community center.
13493+4 "Participating property" means real property that is the
13494+5 subject of a written agreement between a facility owner and
13495+6 the owner of the real property that provides the facility
13496+7 owner an easement, option, lease, or license to use the real
13497+8 property for the purpose of constructing a commercial wind
13498+9 energy facility, a commercial solar energy facility, or
13499+10 supporting facilities. "Participating property" also includes
13500+11 real property that is owned by a facility owner for the purpose
13501+12 of constructing a commercial wind energy facility, a
13502+13 commercial solar energy facility, or supporting facilities.
13503+14 "Participating residence" means a residence that is
13504+15 located on participating property and that is existing and
13505+16 occupied on the date that an application for a permit to
13506+17 develop the commercial wind energy facility or the commercial
13507+18 solar energy facility is filed with the county.
13508+19 "Protected lands" means real property that is:
13509+20 (1) subject to a permanent conservation right
13510+21 consistent with the Real Property Conservation Rights Act;
13511+22 or
13512+23 (2) registered or designated as a nature preserve,
13513+24 buffer, or land and water reserve under the Illinois
13514+25 Natural Areas Preservation Act.
13515+26 "Supporting facilities" means the transmission lines,
13516+
13517+
13518+
13519+
13520+
13521+ SB1699 Enrolled - 376 - LRB103 27684 AMQ 54061 b
13522+
13523+
13524+SB1699 Enrolled- 377 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 377 - LRB103 27684 AMQ 54061 b
13525+ SB1699 Enrolled - 377 - LRB103 27684 AMQ 54061 b
13526+1 substations, access roads, meteorological towers, storage
13527+2 containers, and equipment associated with the generation and
13528+3 storage of electricity by the commercial wind energy facility
13529+4 or commercial solar energy facility.
13530+5 "Wind tower" includes the wind turbine tower, nacelle, and
13531+6 blades.
13532+7 (b) Notwithstanding any other provision of law or whether
13533+8 the county has formed a zoning commission and adopted formal
13534+9 zoning under Section 5-12007, a county may establish standards
13535+10 for commercial wind energy facilities, commercial solar energy
13536+11 facilities, or both. The standards may include all of the
13537+12 requirements specified in this Section but may not include
13538+13 requirements for commercial wind energy facilities or
13539+14 commercial solar energy facilities that are more restrictive
13540+15 than specified in this Section. A county may also regulate the
13541+16 siting of commercial wind energy facilities with standards
13542+17 that are not more restrictive than the requirements specified
13543+18 in this Section in unincorporated areas of the county that are
13544+19 outside the zoning jurisdiction of a municipality and that are
13545+20 outside the 1.5-mile radius surrounding the zoning
13546+21 jurisdiction of a municipality.
13547+22 (c) If a county has elected to establish standards under
13548+23 subsection (b), before the county grants siting approval or a
13549+24 special use permit for a commercial wind energy facility or a
13550+25 commercial solar energy facility, or modification of an
13551+26 approved siting or special use permit, the county board of the
13552+
13553+
13554+
13555+
13556+
13557+ SB1699 Enrolled - 377 - LRB103 27684 AMQ 54061 b
13558+
13559+
13560+SB1699 Enrolled- 378 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 378 - LRB103 27684 AMQ 54061 b
13561+ SB1699 Enrolled - 378 - LRB103 27684 AMQ 54061 b
13562+1 county in which the facility is to be sited or the zoning board
13563+2 of appeals for the county shall hold at least one public
13564+3 hearing. The public hearing shall be conducted in accordance
13565+4 with the Open Meetings Act and shall be held not more than 60
13566+5 45 days after the filing of the application for the facility.
13567+6 The county shall allow interested parties to a special use
13568+7 permit an opportunity to present evidence and to cross-examine
13569+8 witnesses at the hearing, but the county may impose reasonable
13570+9 restrictions on the public hearing, including reasonable time
13571+10 limitations on the presentation of evidence and the
13572+11 cross-examination of witnesses. The county shall also allow
13573+12 public comment at the public hearing in accordance with the
13574+13 Open Meetings Act. The county shall make its siting and
13575+14 permitting decisions not more than 30 days after the
13576+15 conclusion of the public hearing. Notice of the hearing shall
13577+16 be published in a newspaper of general circulation in the
13578+17 county. A facility owner must enter into an agricultural
13579+18 impact mitigation agreement with the Department of Agriculture
13580+19 prior to the date of the required public hearing. A commercial
13581+20 wind energy facility owner seeking an extension of a permit
13582+21 granted by a county prior to July 24, 2015 (the effective date
13583+22 of Public Act 99-132) must enter into an agricultural impact
13584+23 mitigation agreement with the Department of Agriculture prior
13585+24 to a decision by the county to grant the permit extension.
13586+25 Counties may allow test wind towers or test solar energy
13587+26 systems to be sited without formal approval by the county
13588+
13589+
13590+
13591+
13592+
13593+ SB1699 Enrolled - 378 - LRB103 27684 AMQ 54061 b
13594+
13595+
13596+SB1699 Enrolled- 379 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 379 - LRB103 27684 AMQ 54061 b
13597+ SB1699 Enrolled - 379 - LRB103 27684 AMQ 54061 b
13598+1 board.
13599+2 (d) A county with an existing zoning ordinance in conflict
13600+3 with this Section shall amend that zoning ordinance to be in
13601+4 compliance with this Section within 120 days after January 27,
13602+5 2023 (the effective date of Public Act 102-1123) this
13603+6 amendatory Act of the 102nd General Assembly.
13604+7 (e) A county may require:
13605+8 (1) a wind tower of a commercial wind energy facility
13606+9 to be sited as follows, with setback distances measured
13607+10 from the center of the base of the wind tower:
13608+11 Setback Description Setback Distance
13609+12 Occupied Community 2.1 times the maximum blade tip
13610+13 Buildings height of the wind tower to the
13611+14 nearest point on the outside
13612+15 wall of the structure
13613+16 Participating Residences 1.1 times the maximum blade tip
13614+17 height of the wind tower to the
13615+18 nearest point on the outside
13616+19 wall of the structure
13617+20 Nonparticipating Residences 2.1 times the maximum blade tip
13618+21 height of the wind tower to the
13619+22 nearest point on the outside
13620+
13621+
13622+
13623+
13624+
13625+ SB1699 Enrolled - 379 - LRB103 27684 AMQ 54061 b
13626+
13627+
13628+SB1699 Enrolled- 380 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 380 - LRB103 27684 AMQ 54061 b
13629+ SB1699 Enrolled - 380 - LRB103 27684 AMQ 54061 b
13630+1 wall of the structure
13631+2 Boundary Lines of None
13632+3 Participating Property
13633+4 Boundary Lines of 1.1 times the maximum blade tip
13634+5 Nonparticipating Property height of the wind tower to the
13635+6 nearest point on the property
13636+7 line of the nonparticipating
13637+8 property
13638+9 Public Road Rights-of-Way 1.1 times the maximum blade tip
13639+10 height of the wind tower
13640+11 to the center point of the
13641+12 public road right-of-way
13642+13 Overhead Communication and 1.1 times the maximum blade tip
13643+14 Electric Transmission height of the wind tower to the
13644+15 and Distribution Facilities nearest edge of the property
13645+16 (Not Including Overhead line, easement, or
13646+17 Utility Service Lines to right-of-way right of way
13647+18 Individual Houses or containing the overhead line
13648+19 Outbuildings)
13649+20 Overhead Utility Service None
13650+21 Lines to Individual
13651+
13652+
13653+
13654+
13655+
13656+ SB1699 Enrolled - 380 - LRB103 27684 AMQ 54061 b
13657+
13658+
13659+SB1699 Enrolled- 381 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 381 - LRB103 27684 AMQ 54061 b
13660+ SB1699 Enrolled - 381 - LRB103 27684 AMQ 54061 b
13661+1 Houses or Outbuildings
13662+2 Fish and Wildlife Areas 2.1 times the maximum blade
13663+3 and Illinois Nature tip height of the wind tower
13664+4 Preserve Commission to the nearest point on the
13665+5 Protected Lands property line of the fish and
13666+6 wildlife area or protected
13667+7 land
13668+8 This Section does not exempt or excuse compliance with
13669+9 electric facility clearances approved or required by the
13670+10 National Electrical Code, The National Electrical Safety
13671+11 Code, Illinois Commerce Commission, Federal Energy
13672+12 Regulatory Commission, and their designees or successors.
13673+13 (2) a wind tower of a commercial wind energy facility
13674+14 to be sited so that industry standard computer modeling
13675+15 indicates that any occupied community building or
13676+16 nonparticipating residence will not experience more than
13677+17 30 hours per year of shadow flicker under planned
13678+18 operating conditions;
13679+19 (3) a commercial solar energy facility to be sited as
13680+20 follows, with setback distances measured from the nearest
13681+21 edge of any component of the facility:
13682+22 Setback Description Setback Distance
13683+
13684+
13685+
13686+
13687+
13688+ SB1699 Enrolled - 381 - LRB103 27684 AMQ 54061 b
13689+
13690+
13691+SB1699 Enrolled- 382 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 382 - LRB103 27684 AMQ 54061 b
13692+ SB1699 Enrolled - 382 - LRB103 27684 AMQ 54061 b
13693+1 Occupied Community 150 feet from the nearest
13694+2 Buildings and Dwellings on point on the outside wall
13695+3 Nonparticipating Properties of the structure
13696+4 Boundary Lines of None
13697+5 Participating Property
13698+6 Public Road Rights-of-Way 50 feet from the nearest
13699+7 edge
13700+8 Boundary Lines of 50 feet to the nearest
13701+9 Nonparticipating Property point on the property
13702+10 line of the nonparticipating
13703+11 property
13704+12 (4) a commercial solar energy facility to be sited so
13705+13 that the facility's perimeter is enclosed by fencing
13706+14 having a height of at least 6 feet and no more than 25
13707+15 feet; and
13708+16 (5) a commercial solar energy facility to be sited so
13709+17 that no component of a solar panel has a height of more
13710+18 than 20 feet above ground when the solar energy facility's
13711+19 arrays are at full tilt.
13712+20 The requirements set forth in this subsection (e) may be
13713+21 waived subject to the written consent of the owner of each
13714+22 affected nonparticipating property.
13715+
13716+
13717+
13718+
13719+
13720+ SB1699 Enrolled - 382 - LRB103 27684 AMQ 54061 b
13721+
13722+
13723+SB1699 Enrolled- 383 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 383 - LRB103 27684 AMQ 54061 b
13724+ SB1699 Enrolled - 383 - LRB103 27684 AMQ 54061 b
13725+1 (f) A county may not set a sound limitation for wind towers
13726+2 in commercial wind energy facilities or any components in
13727+3 commercial solar energy facilities facility that is more
13728+4 restrictive than the sound limitations established by the
13729+5 Illinois Pollution Control Board under 35 Ill. Adm. Code Parts
13730+6 900, 901, and 910.
13731+7 (g) A county may not place any restriction on the
13732+8 installation or use of a commercial wind energy facility or a
13733+9 commercial solar energy facility unless it adopts an ordinance
13734+10 that complies with this Section. A county may not establish
13735+11 siting standards for supporting facilities that preclude
13736+12 development of commercial wind energy facilities or commercial
13737+13 solar energy facilities.
13738+14 A request for siting approval or a special use permit for a
13739+15 commercial wind energy facility or a commercial solar energy
13740+16 facility, or modification of an approved siting or special use
13741+17 permit, shall be approved if the request is in compliance with
13742+18 the standards and conditions imposed in this Act, the zoning
13743+19 ordinance adopted consistent with this Code, and the
13744+20 conditions imposed under State and federal statutes and
13745+21 regulations.
13746+22 (h) A county may not adopt zoning regulations that
13747+23 disallow, permanently or temporarily, commercial wind energy
13748+24 facilities or commercial solar energy facilities from being
13749+25 developed or operated in any district zoned to allow
13750+26 agricultural or industrial uses.
13751+
13752+
13753+
13754+
13755+
13756+ SB1699 Enrolled - 383 - LRB103 27684 AMQ 54061 b
13757+
13758+
13759+SB1699 Enrolled- 384 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 384 - LRB103 27684 AMQ 54061 b
13760+ SB1699 Enrolled - 384 - LRB103 27684 AMQ 54061 b
13761+1 (i) A county may not require permit application fees for a
13762+2 commercial wind energy facility or commercial solar energy
13763+3 facility that are unreasonable. All application fees imposed
13764+4 by the county shall be consistent with fees for projects in the
13765+5 county with similar capital value and cost.
13766+6 (j) Except as otherwise provided in this Section, a county
13767+7 shall not require standards for construction, decommissioning,
13768+8 or deconstruction of a commercial wind energy facility or
13769+9 commercial solar energy facility or related financial
13770+10 assurances that are more restrictive than those included in
13771+11 the Department of Agriculture's standard wind farm
13772+12 agricultural impact mitigation agreement, template 81818, or
13773+13 standard solar agricultural impact mitigation agreement,
13774+14 version 8.19.19, as applicable and in effect on December 31,
13775+15 2022. The amount of any decommissioning payment shall be in
13776+16 accordance with the financial assurance limited to the cost
13777+17 identified in the decommissioning or deconstruction plan, as
13778+18 required by those agricultural impact mitigation agreements,
13779+19 minus the salvage value of the project.
13780+20 (j-5) A commercial wind energy facility or a commercial
13781+21 solar energy facility shall file a farmland drainage plan with
13782+22 the county and impacted drainage districts outlining how
13783+23 surface and subsurface drainage of farmland will be restored
13784+24 during and following construction or deconstruction of the
13785+25 facility. The plan is to be created independently by the
13786+26 facility developer and shall include the location of any
13787+
13788+
13789+
13790+
13791+
13792+ SB1699 Enrolled - 384 - LRB103 27684 AMQ 54061 b
13793+
13794+
13795+SB1699 Enrolled- 385 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 385 - LRB103 27684 AMQ 54061 b
13796+ SB1699 Enrolled - 385 - LRB103 27684 AMQ 54061 b
13797+1 potentially impacted drainage district facilities to the
13798+2 extent this information is publicly available from the county
13799+3 or the drainage district, plans to repair any subsurface
13800+4 drainage affected during construction or deconstruction using
13801+5 procedures outlined in the agricultural impact mitigation
13802+6 agreement entered into by the commercial wind energy facility
13803+7 owner or commercial solar energy facility owner, and
13804+8 procedures for the repair and restoration of surface drainage
13805+9 affected during construction or deconstruction. All surface
13806+10 and subsurface damage shall be repaired as soon as reasonably
13807+11 practicable.
13808+12 (k) A county may not condition approval of a commercial
13809+13 wind energy facility or commercial solar energy facility on a
13810+14 property value guarantee and may not require a facility owner
13811+15 to pay into a neighboring property devaluation escrow account.
13812+16 (l) A county may require certain vegetative screening
13813+17 surrounding a commercial wind energy facility or commercial
13814+18 solar energy facility but may not require earthen berms or
13815+19 similar structures.
13816+20 (m) A county may set blade tip height limitations for wind
13817+21 towers in commercial wind energy facilities but may not set a
13818+22 blade tip height limitation that is more restrictive than the
13819+23 height allowed under a Determination of No Hazard to Air
13820+24 Navigation by the Federal Aviation Administration under 14 CFR
13821+25 Part 77.
13822+26 (n) A county may require that a commercial wind energy
13823+
13824+
13825+
13826+
13827+
13828+ SB1699 Enrolled - 385 - LRB103 27684 AMQ 54061 b
13829+
13830+
13831+SB1699 Enrolled- 386 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 386 - LRB103 27684 AMQ 54061 b
13832+ SB1699 Enrolled - 386 - LRB103 27684 AMQ 54061 b
13833+1 facility owner or commercial solar energy facility owner
13834+2 provide:
13835+3 (1) the results and recommendations from consultation
13836+4 with the Illinois Department of Natural Resources that are
13837+5 obtained through the Ecological Compliance Assessment Tool
13838+6 (EcoCAT) or a comparable successor tool; and
13839+7 (2) the results of the United States Fish and Wildlife
13840+8 Service's Information for Planning and Consulting
13841+9 environmental review or a comparable successor tool that
13842+10 is consistent with (i) the "U.S. Fish and Wildlife
13843+11 Service's Land-Based Wind Energy Guidelines" and (ii) any
13844+12 applicable United States Fish and Wildlife Service solar
13845+13 wildlife guidelines that have been subject to public
13846+14 review.
13847+15 (o) A county may require a commercial wind energy facility
13848+16 or commercial solar energy facility to adhere to the
13849+17 recommendations provided by the Illinois Department of Natural
13850+18 Resources in an EcoCAT natural resource review report under 17
13851+19 Ill. Adm. Admin. Code Part 1075.
13852+20 (p) A county may require a facility owner to:
13853+21 (1) demonstrate avoidance of protected lands as
13854+22 identified by the Illinois Department of Natural Resources
13855+23 and the Illinois Nature Preserve Commission; or
13856+24 (2) consider the recommendations of the Illinois
13857+25 Department of Natural Resources for setbacks from
13858+26 protected lands, including areas identified by the
13859+
13860+
13861+
13862+
13863+
13864+ SB1699 Enrolled - 386 - LRB103 27684 AMQ 54061 b
13865+
13866+
13867+SB1699 Enrolled- 387 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 387 - LRB103 27684 AMQ 54061 b
13868+ SB1699 Enrolled - 387 - LRB103 27684 AMQ 54061 b
13869+1 Illinois Nature Preserve Commission.
13870+2 (q) A county may require that a facility owner provide
13871+3 evidence of consultation with the Illinois State Historic
13872+4 Preservation Office to assess potential impacts on
13873+5 State-registered historic sites under the Illinois State
13874+6 Agency Historic Resources Preservation Act.
13875+7 (r) To maximize community benefits, including, but not
13876+8 limited to, reduced stormwater runoff, flooding, and erosion
13877+9 at the ground mounted solar energy system, improved soil
13878+10 health, and increased foraging habitat for game birds,
13879+11 songbirds, and pollinators, a county may (1) require a
13880+12 commercial solar energy facility owner to plant, establish,
13881+13 and maintain for the life of the facility vegetative ground
13882+14 cover, consistent with the goals of the Pollinator-Friendly
13883+15 Solar Site Act and (2) require the submittal of a vegetation
13884+16 management plan that is in compliance with the agricultural
13885+17 impact mitigation agreement in the application to construct
13886+18 and operate a commercial solar energy facility in the county
13887+19 if the vegetative ground cover and vegetation management plan
13888+20 comply with the requirements of the underlying agreement with
13889+21 the landowner or landowners where the facility will be
13890+22 constructed.
13891+23 No later than 90 days after January 27, 2023 (the
13892+24 effective date of Public Act 102-1123) this amendatory Act of
13893+25 the 102nd General Assembly, the Illinois Department of Natural
13894+26 Resources shall develop guidelines for vegetation management
13895+
13896+
13897+
13898+
13899+
13900+ SB1699 Enrolled - 387 - LRB103 27684 AMQ 54061 b
13901+
13902+
13903+SB1699 Enrolled- 388 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 388 - LRB103 27684 AMQ 54061 b
13904+ SB1699 Enrolled - 388 - LRB103 27684 AMQ 54061 b
13905+1 plans that may be required under this subsection for
13906+2 commercial solar energy facilities. The guidelines must
13907+3 include guidance for short-term and long-term property
13908+4 management practices that provide and maintain native and
13909+5 non-invasive naturalized perennial vegetation to protect the
13910+6 health and well-being of pollinators.
13911+7 (s) If a facility owner enters into a road use agreement
13912+8 with the Illinois Department of Transportation, a road
13913+9 district, or other unit of local government relating to a
13914+10 commercial wind energy facility or a commercial solar energy
13915+11 facility, the road use agreement shall require the facility
13916+12 owner to be responsible for (i) the reasonable cost of
13917+13 improving roads used by the facility owner to construct the
13918+14 commercial wind energy facility or the commercial solar energy
13919+15 facility and (ii) the reasonable cost of repairing roads used
13920+16 by the facility owner during construction of the commercial
13921+17 wind energy facility or the commercial solar energy facility
13922+18 so that those roads are in a condition that is safe for the
13923+19 driving public after the completion of the facility's
13924+20 construction. Roadways improved in preparation for and during
13925+21 the construction of the commercial wind energy facility or
13926+22 commercial solar energy facility shall be repaired and
13927+23 restored to the improved condition at the reasonable cost of
13928+24 the developer if the roadways have degraded or were damaged as
13929+25 a result of construction-related activities.
13930+26 The road use agreement shall not require the facility
13931+
13932+
13933+
13934+
13935+
13936+ SB1699 Enrolled - 388 - LRB103 27684 AMQ 54061 b
13937+
13938+
13939+SB1699 Enrolled- 389 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 389 - LRB103 27684 AMQ 54061 b
13940+ SB1699 Enrolled - 389 - LRB103 27684 AMQ 54061 b
13941+1 owner to pay costs, fees, or charges for road work that is not
13942+2 specifically and uniquely attributable to the construction of
13943+3 the commercial wind energy facility or the commercial solar
13944+4 energy facility. Road-related fees, permit fees, or other
13945+5 charges imposed by the Illinois Department of Transportation,
13946+6 a road district, or other unit of local government under a road
13947+7 use agreement with the facility owner shall be reasonably
13948+8 related to the cost of administration of the road use
13949+9 agreement.
13950+10 (s-5) The facility owner shall also compensate landowners
13951+11 for crop losses or other agricultural damages resulting from
13952+12 damage to the drainage system caused by the construction of
13953+13 the commercial wind energy facility or the commercial solar
13954+14 energy facility. The commercial wind energy facility owner or
13955+15 commercial solar energy facility owner shall repair or pay for
13956+16 the repair of all damage to the subsurface drainage system
13957+17 caused by the construction of the commercial wind energy
13958+18 facility or the commercial solar energy facility in accordance
13959+19 with the agriculture impact mitigation agreement requirements
13960+20 for repair of drainage. The commercial wind energy facility
13961+21 owner or commercial solar energy facility owner shall repair
13962+22 or pay for the repair and restoration of surface drainage
13963+23 caused by the construction or deconstruction of the commercial
13964+24 wind energy facility or the commercial solar energy facility
13965+25 as soon as reasonably practicable.
13966+26 (t) Notwithstanding any other provision of law, a facility
13967+
13968+
13969+
13970+
13971+
13972+ SB1699 Enrolled - 389 - LRB103 27684 AMQ 54061 b
13973+
13974+
13975+SB1699 Enrolled- 390 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 390 - LRB103 27684 AMQ 54061 b
13976+ SB1699 Enrolled - 390 - LRB103 27684 AMQ 54061 b
13977+1 owner with siting approval from a county to construct a
13978+2 commercial wind energy facility or a commercial solar energy
13979+3 facility is authorized to cross or impact a drainage system,
13980+4 including, but not limited to, drainage tiles, open drainage
13981+5 ditches districts, culverts, and water gathering vaults, owned
13982+6 or under the control of a drainage district under the Illinois
13983+7 Drainage Code without obtaining prior agreement or approval
13984+8 from the drainage district in accordance with the farmland
13985+9 drainage plan required by subsection (j-5) , except that the
13986+10 facility owner shall repair or pay for the repair of all damage
13987+11 to the drainage system caused by the construction of the
13988+12 commercial wind energy facility or the commercial solar energy
13989+13 facility within a reasonable time after construction of the
13990+14 commercial wind energy facility or the commercial solar energy
13991+15 facility is complete.
13992+16 (u) The amendments to this Section adopted in Public Act
13993+17 102-1123 do not apply to: (1) an application for siting
13994+18 approval or for a special use permit for a commercial wind
13995+19 energy facility or commercial solar energy facility if the
13996+20 application was submitted to a unit of local government before
13997+21 January 27, 2023 (the effective date of Public Act 102-1123)
13998+22 this amendatory Act of the 102nd General Assembly; (2) a
13999+23 commercial wind energy facility or a commercial solar energy
14000+24 facility if the facility owner has submitted an agricultural
14001+25 impact mitigation agreement to the Department of Agriculture
14002+26 before January 27, 2023 (the effective date of Public Act
14003+
14004+
14005+
14006+
14007+
14008+ SB1699 Enrolled - 390 - LRB103 27684 AMQ 54061 b
14009+
14010+
14011+SB1699 Enrolled- 391 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 391 - LRB103 27684 AMQ 54061 b
14012+ SB1699 Enrolled - 391 - LRB103 27684 AMQ 54061 b
14013+1 102-1123) this amendatory Act of the 102nd General Assembly;
14014+2 or (3) a commercial wind energy or commercial solar energy
14015+3 development on property that is located within an enterprise
14016+4 zone certified under the Illinois Enterprise Zone Act, that
14017+5 was classified as industrial by the appropriate zoning
14018+6 authority on or before January 27, 2023, and that is located
14019+7 within 4 miles of the intersection of Interstate 88 and
14020+8 Interstate 39.
14021+9 (Source: P.A. 102-1123, eff. 1-27-23; 103-81, eff. 6-9-23;
14022+10 revised 9-25-23.)
14023+11 Section 25. The Public Utilities Act is amended by adding
14024+12 Section 4-610 as follows:
14025+13 (220 ILCS 5/4-610 new)
14026+14 Sec. 4-610. Thermal energy networks.
14027+15 (a) The General Assembly finds that:
14028+16 (1) the State has an interest in decarbonizing
14029+17 buildings in a manner that is affordable and accessible,
14030+18 preserves and creates living-wage jobs, and retains the
14031+19 knowledge and experience of the existing utility
14032+20 workforce;
14033+21 (2) thermal energy networks have the potential to
14034+22 affordably decarbonize buildings at the community-scale
14035+23 and utility-scale and help achieve the goals of the
14036+24 Climate and Equitable Jobs Act (Public Act 102-662);
14037+
14038+
14039+
14040+
14041+
14042+ SB1699 Enrolled - 391 - LRB103 27684 AMQ 54061 b
14043+
14044+
14045+SB1699 Enrolled- 392 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 392 - LRB103 27684 AMQ 54061 b
14046+ SB1699 Enrolled - 392 - LRB103 27684 AMQ 54061 b
14047+1 (3) the construction industry is highly skilled and
14048+2 labor intensive, and the installation of modern thermal
14049+3 energy networks involves particularly complex work,
14050+4 therefore effective qualification standards for craft
14051+5 labor personnel employed on these projects are critically
14052+6 needed to promote successful project delivery; and
14053+7 (4) it is the intent of the General Assembly to
14054+8 establish a stakeholder workshop within the Commission to
14055+9 promote the successful planning and delivery of thermal
14056+10 energy networks in an equitable manner that reduces
14057+11 emissions, offers affordable building decarbonization, and
14058+12 provides opportunities for employment with fair labor
14059+13 standards and preapprenticeship and apprenticeship
14060+14 programs.
14061+15 (b) As used in this Section:
14062+16 "Thermal energy" means piped noncombustible fluids used
14063+17 for transferring heat into and out of buildings for the
14064+18 purpose of reducing any resultant onsite greenhouse gas
14065+19 emissions of all types of heating and cooling processes,
14066+20 including, but not limited to, comfort heating and cooling,
14067+21 domestic hot water, and refrigeration.
14068+22 "Thermal energy network" means all real estate, fixtures,
14069+23 and personal property operated, owned, used, or to be used
14070+24 for, in connection with, or to facilitate a utility-scale
14071+25 distribution infrastructure project that supplies thermal
14072+26 energy.
14073+
14074+
14075+
14076+
14077+
14078+ SB1699 Enrolled - 392 - LRB103 27684 AMQ 54061 b
14079+
14080+
14081+SB1699 Enrolled- 393 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 393 - LRB103 27684 AMQ 54061 b
14082+ SB1699 Enrolled - 393 - LRB103 27684 AMQ 54061 b
14083+1 (c) The Commission, in order to develop a regulatory
14084+2 structure for utility thermal energy networks that scale with
14085+3 affordable and accessible building electrification, protect
14086+4 utility customers, and promote the successful planning and
14087+5 delivery of thermal energy networks, shall convene a workshop
14088+6 process for the purpose of establishing an open, inclusive,
14089+7 and cooperative forum regarding such thermal energy networks.
14090+8 The workshops may be facilitated by an independent,
14091+9 third-party facilitator selected by the Commission. The series
14092+10 of workshops shall include no fewer than 3 workshops. After
14093+11 the conclusion of the workshops, the Commission shall open a
14094+12 comment period that allows interested and diverse stakeholders
14095+13 to submit comments and recommendations regarding the thermal
14096+14 energy networks. Based on the workshop process and stakeholder
14097+15 comments and recommendations offered verbally or in writing
14098+16 during the workshops and in writing during the comment period
14099+17 following the workshops, the Commission or, if applicable, the
14100+18 independent third-party facilitator, shall prepare a report,
14101+19 to be submitted to the Governor and the General Assembly no
14102+20 later than March 1, 2024, describing the stakeholders,
14103+21 discussions, proposals, and areas of consensus and
14104+22 disagreement from the workshop process, and making
14105+23 recommendations regarding thermal energy networks.
14106+24 (d) The workshop shall be designed to achieve the
14107+25 following objectives:
14108+26 (1) determine appropriate ownership, market, and rate
14109+
14110+
14111+
14112+
14113+
14114+ SB1699 Enrolled - 393 - LRB103 27684 AMQ 54061 b
14115+
14116+
14117+SB1699 Enrolled- 394 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 394 - LRB103 27684 AMQ 54061 b
14118+ SB1699 Enrolled - 394 - LRB103 27684 AMQ 54061 b
14119+1 structures for thermal energy networks and whether the
14120+2 provision of thermal energy services by thermal network
14121+3 energy providers is in the public interest;
14122+4 (2) consider project designs that could maximize the
14123+5 value of existing State energy efficiency and
14124+6 weatherization programs and maximize federal funding
14125+7 opportunities to the extent practicable;
14126+8 (3) determine whether thermal energy network projects
14127+9 further climate justice and emissions reductions and
14128+10 benefits to utility customers and society at large,
14129+11 including but not limited to public health benefits in
14130+12 areas with disproportionate environmental burdens, job
14131+13 retention and creation, reliability, and increased
14132+14 affordability of renewable thermal energy options;
14133+15 (4) consider approaches to thermal energy network
14134+16 projects that advance financial and technical approaches
14135+17 to equitable and affordable building electrification,
14136+18 including access to thermal energy network benefits by low
14137+19 and moderate income households; and
14138+20 (5) consider approaches to promote the training and
14139+21 transition of utility workers to work on thermal energy
14140+22 networks.
14141+23 Section 95. No acceleration or delay. Where this Act makes
14142+24 changes in a statute that is represented in this Act by text
14143+25 that is not yet or no longer in effect (for example, a Section
14144+
14145+
14146+
14147+
14148+
14149+ SB1699 Enrolled - 394 - LRB103 27684 AMQ 54061 b
14150+
14151+
14152+SB1699 Enrolled- 395 -LRB103 27684 AMQ 54061 b SB1699 Enrolled - 395 - LRB103 27684 AMQ 54061 b
14153+ SB1699 Enrolled - 395 - LRB103 27684 AMQ 54061 b
14154+1 represented by multiple versions), the use of that text does
14155+2 not accelerate or delay the taking effect of (i) the changes
14156+3 made by this Act or (ii) provisions derived from any other
14157+4 Public Act.
14158+
14159+
14160+
14161+
14162+
14163+ SB1699 Enrolled - 395 - LRB103 27684 AMQ 54061 b