Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3637 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3637 Introduced 2/9/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: See Index Creates the Municipal and Cooperative Electric Utility Planning and Transparency Act. Provides that, by November 1, 2024, and by November 1 every 3 years thereafter, all electric cooperatives with members in the State, municipal power agencies, and municipalities shall file with the Illinois Power Agency an integrated resource plan. Sets forth provisions concerning the plan. Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes. LRB103 38841 CES 68978 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3637 Introduced 2/9/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: See Index See Index Creates the Municipal and Cooperative Electric Utility Planning and Transparency Act. Provides that, by November 1, 2024, and by November 1 every 3 years thereafter, all electric cooperatives with members in the State, municipal power agencies, and municipalities shall file with the Illinois Power Agency an integrated resource plan. Sets forth provisions concerning the plan. Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes. LRB103 38841 CES 68978 b LRB103 38841 CES 68978 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3637 Introduced 2/9/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Creates the Municipal and Cooperative Electric Utility Planning and Transparency Act. Provides that, by November 1, 2024, and by November 1 every 3 years thereafter, all electric cooperatives with members in the State, municipal power agencies, and municipalities shall file with the Illinois Power Agency an integrated resource plan. Sets forth provisions concerning the plan. Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes.
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11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the
15	15	5 Municipal and Cooperative Electric Utility Planning and
16	16	6 Transparency Act.
17	17	7 Section 5. Legislative findings and objectives. The
18	18	8 General Assembly finds:
19	19	9 (1) Municipal and cooperative electric utilities
20	20	10 provide electricity to more than 1,000,000 State
21	21	11 residents.
22	22	12 (2) These utilities are managed by elected officials,
23	23	13 elected board members, or their appointees. Due to their
24	24	14 governance structures, municipal and cooperative electric
25	25	15 utilities are exempt from certain regulatory requirements
26	26	16 and oversight under State and federal law.
27	27	17 (3) State residents who are served by these utilities,
28	28	18 and who pay rates for electricity set by these utilities,
29	29	19 often lack access to important information about these
30	30	20 utilities' generation portfolios, procurement, management
31	31	21 practices, and budgets. Because democratic elections by
32	32	22 member-ratepayers or customers are the ultimate guarantor
33	33	23 of the integrity and cost-effectiveness of these
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3637 Introduced 2/9/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Creates the Municipal and Cooperative Electric Utility Planning and Transparency Act. Provides that, by November 1, 2024, and by November 1 every 3 years thereafter, all electric cooperatives with members in the State, municipal power agencies, and municipalities shall file with the Illinois Power Agency an integrated resource plan. Sets forth provisions concerning the plan. Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop capacity procurement plans and conduct competitive procurement processes for the procurement of capacity needed to ensure environmentally sustainable long-term resource adequacy across the State at the lowest cost over time. Amends the Public Utilities Act. Changes the cumulative persisting annual savings goals for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers for the years of 2024 through 2030. Provides that the cumulative persisting annual savings goals beyond the year 2030 shall increase by 0.9 (rather than 0.6) percentage points per year. Changes the requirements for submitting proposed plans and funding levels to meet savings goals for an electric utility serving more than 500,000 retail customers (rather than serving less than 3,000,000 retail customers but more than 500,000 retail customers). Provides that an electric utility that has a tariff approved within one year of the amendatory Act shall also offer at least one market-based, time-of-use rate for eligible retail customers that choose to take power and energy supply service from the utility. Sets forth provisions regarding the Illinois Commerce Commission's powers and duties related to residential time-of-use pricing. Provides that each capacity procurement event may include the procurement of capacity through a mix of contracts with different terms and different initial delivery dates. Sets forth the requirements of prepared capacity procurement plans. Requires each alternative electric supplier to make payment to an applicable electric utility for capacity, receive transfers of capacity credits, report capacity credits procured on its behalf to the applicable regional transmission organization, and submit the capacity credits to the applicable regional transmission organization under that regional transmission organization's rules and procedures. Makes other changes.
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68	68	1 utilities' operations, access to this information is
69	69	2 crucial to ensuring management of these utilities is
70	70	3 prudent and responsive.
71	71	4 (4) Good utility practice entails long-term planning
72	72	5 on the part of a utility, including anticipating
73	73	6 retirement of existing generation resources, planning new
74	74	7 generation build or purchase well in advance of any
75	75	8 capacity shortfall, and developing rigorous estimates of
76	76	9 future load to inform procurement, construction, and
77	77	10 retirement decisions.
78	78	11 (5) In many other states, integrated resource planning
79	79	12 processes have been used to avoid capacity shortfalls,
80	80	13 minimize ratepayer costs, and increase public
81	81	14 participation in and knowledge of electric generation
82	82	15 portfolio choices, even where the planning utility is not
83	83	16 otherwise subject to rate approval by the state.
84	84	17 (6) It is in the best interests of State electricity
85	85	18 customers and member-ratepayers that electricity is
86	86	19 provided by a portfolio of generation and storage
87	87	20 resources and demand-side programs that minimizes both
88	88	21 cost and environmental impacts and that long-term utility
89	89	22 planning can and should facilitate the achievement of such
90	90	23 portfolios.
91	91	24 (7) With the enactment of the Inflation Reduction Act
92	92	25 of 2022, municipal and cooperative electric utilities have
93	93	26 access to a variety of federal funding streams designed to
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104	104	1 facilitate transition from fossil fuel to renewable
105	105	2 generation. Consistent with Congressional intent,
106	106	3 municipal and cooperative electric utilities should
107	107	4 perform a comprehensive analysis of their existing
108	108	5 portfolio and have a duty, as utility managers, to
109	109	6 identify opportunities to minimize member-ratepayer and
110	110	7 customer costs.
111	111	8 (8) To ensure utilities minimize ratepayer costs,
112	112	9 maximize opportunities for transition from fossil fuels to
113	113	10 renewable resources, and to increase transparency and
114	114	11 democratic participation, it is important that municipal
115	115	12 and cooperative electric utilities participate in an
116	116	13 integrated resource planning process with public
117	117	14 participation and Illinois Power Agency oversight.
118	118	15 Section 10. Definitions. As used in this Act:
119	119	16 "Agency" means the Illinois Power Agency.
120	120	17 "Demand-side program" means a program implemented by or on
121	121	18 behalf of a utility to reduce retail customer consumption
122	122	19 (MWh) or shift the time of consumption of energy (MW) from end
123	123	20 users, including energy efficiency programs, demand-response
124	124	21 programs, and programs for the promotion or aggregation of
125	125	22 distributed generation.
126	126	23 "Electric cooperative" has the meaning given to that term
127	127	24 in Section 3-119 of the Public Utilities Act.
128	128	25 "Generation resource" means a facility for the generation
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139	139	1 of electricity.
140	140	2 "Municipal power agency" has the meaning given to that
141	141	3 term in Section 11-119.1-3 of the Illinois Municipal Code.
142	142	4 "Municipality" has the meaning given to that term in
143	143	5 Section 11-119.1-3 of the Illinois Municipal Code.
144	144	6 "Renewable generation resource" means a resource for
145	145	7 generating electricity that uses wind, solar, or geothermal
146	146	8 energy.
147	147	9 "Storage resource" means a commercially available
148	148	10 technology that uses mechanical, chemical, or thermal
149	149	11 processes to store energy and deliver the stored energy as
150	150	12 electricity for use at a later time and is capable of being
151	151	13 controlled by the distribution or transmission entity managing
152	152	14 it, to enable and optimize the safe and reliable operation of
153	153	15 the electric system.
154	154	16 "Utility" means a municipal power agency, municipality, or
155	155	17 electric cooperative.
156	156	18 Section 15. Purpose and contents of integrated resource
157	157	19 plan.
158	158	20 (a) By November 1, 2024, and by November 1 every 3 years
159	159	21 thereafter, all electric cooperatives with members in this
160	160	22 State, municipal power agencies, and municipalities shall file
161	161	23 with the Agency an integrated resource plan, except that
162	162	24 municipalities and electric cooperatives that are members of,
163	163	25 and have a full requirements contract with, a municipal power
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174	174	1 agency or electric cooperative subject to this Act may file a
175	175	2 statement adopting such other utility's integrated resource
176	176	3 plan.
177	177	4 (b) The purposes of the integrated resource plan are to
178	178	5 provide a comprehensive description of the utility's current
179	179	6 portfolio of electrical generation, storage, demand-side
180	180	7 programs, and transmission resources, to forecast future load
181	181	8 changes to facilitate prudent planning with respect to
182	182	9 resource procurement and retirement, to determine what
183	183	10 resource portfolio will meet ratepayers' needs while
184	184	11 minimizing cost and environmental impact, and to articulate
185	185	12 steps the utility will take to reduce customer costs and
186	186	13 environmental impacts through changes to its current
187	187	14 generation portfolio through construction, procurement,
188	188	15 retirement, or demand-side programs.
189	189	16 (c) As part of the integrated resource plan development
190	190	17 process, a utility shall consider all resources reasonably
191	191	18 available or reasonably likely to be available during the
192	192	19 relevant time period to satisfy the demand for electricity
193	193	20 services for a 20-year planning period, taking into account
194	194	21 both supply-side and demand-side electric power resources.
195	195	22 (d) An integrated resource plan shall include, at a
196	196	23 minimum:
197	197	24 (1) A list of all electricity generation facilities
198	198	25 owned by the utility, in whole or in part. For each such
199	199	26 facility, the integrated resource plan shall report:
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210	210	1 (A) general location;
211	211	2 (B) ownership information, if ownership is shared
212	212	3 with another entity;
213	213	4 (C) type of fuel;
214	214	5 (D) the date of commercial operation;
215	215	6 (E) expected useful life;
216	216	7 (F) expected retirement date for any resource
217	217	8 expected to retire within the next 10 years, and an
218	218	9 explanation of the reason for the retirement;
219	219	10 (G) nameplate and peak available capacity;
220	220	11 (H) total MWh generated at the facility during the
221	221	12 previous calendar year;
222	222	13 (I) the date on which the facility is anticipated
223	223	14 to be fully depreciated; and
224	224	15 (J) any compliance obligations, or compliance
225	225	16 obligations expected to apply within the next 10
226	226	17 years, and any proposed or anticipated expenditures
227	227	18 intended to meet those obligations.
228	228	19 (2) A list of all power purchase agreements to which
229	229	20 the utility is a party, whether as purchaser or seller,
230	230	21 including the counterparty, general location and type of
231	231	22 generation resource providing power per the agreement,
232	232	23 date on which the agreement was entered into, duration of
233	233	24 the agreement, and the energy and capacity terms of the
234	234	25 agreement.
235	235	26 (3) A list of any sale transactions of any energy or
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246	246	1 capacity to any purchaser.
247	247	2 (4) A list of any demand-side programs and total
248	248	3 distributed generation.
249	249	4 (5) A narrative description of all existing
250	250	5 transmission facilities owned by the utility, in whole or
251	251	6 in part, that identifies any transmission constraints or
252	252	7 critical contingencies, and identification of the regional
253	253	8 transmission organization, if any, which exercises
254	254	9 operational control over the transmission facility.
255	255	10 (6) A list of all capital expenditures exceeding
256	256	11 $1,000,000 in the previous calendar year that includes a
257	257	12 brief description of the expenditure, the total amount
258	258	13 expended, and whether the expenditure was required to
259	259	14 conform with State or federal law, rule, or regulation;
260	260	15 (7) A description of all transmission costs,
261	261	16 disaggregated by expenditure, that identifies all capital
262	262	17 expenditures on physical infrastructure and contracts for
263	263	18 rights costing greater than $1,000,000 over the term of
264	264	19 the agreement.
265	265	20 (8) A copy of the most recent FERC Form 1 filed by the
266	266	21 utility. If no such FERC Form 1 has been filed, the utility
267	267	22 shall complete a FERC Form 1 for the prior calendar year.
268	268	23 (9) A range of load forecasts for the 5-year planning
269	269	24 period that includes hourly data representing a high-load,
270	270	25 low-load, and expected-load scenario for all retail
271	271	26 customers, consistent with the requirements of paragraph
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282	282	1 (1) of subsection (d) of Section 16-111.5 of the Public
283	283	2 Utilities Act and any associated rules or regulations.
284	284	3 Such forecasts shall include:
285	285	4 (A) all underlying assumptions;
286	286	5 (B) an hourly load analysis consistent with the
287	287	6 requirements of paragraph (1) of subsection (b) of
288	288	7 Section 16-111.5 of the Public Utilities Act;
289	289	8 (C) analysis of the impact of any demand-side
290	290	9 programs, consistent with paragraph (2) of subsection
291	291	10 (b) of Section 16-111.5 of the Public Utilities Act;
292	292	11 (D) any reserve margin or other obligations placed
293	293	12 on the utility by regional transmission organizations
294	294	13 to which it is a member; and
295	295	14 (E) to the extent the information is available, an
296	296	15 assessment of the accuracy of any past load forecasts
297	297	16 submitted pursuant to this Section and an explanation
298	298	17 of any deviation of greater than 10% in either
299	299	18 direction from the forecasted load.
300	300	19 (10) The results of an all-source request for
301	301	20 proposals for generation resources and capacity contracts.
302	302	21 (11) A 5-year action plan for meeting the forecasted
303	303	22 load that minimizes customer cost and adverse
304	304	23 environmental impacts. As part of the action plan, the
305	305	24 utility shall:
306	306	25 (A) Identify any generation or storage resources
307	307	26 anticipated to be removed from service in the 5 years
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318	318	1 following the date on which the integrated resource
319	319	2 plan is submitted.
320	320	3 (B) Determine whether given forecasted load growth
321	321	4 or unit retirements, or both, the utility will need to
322	322	5 procure additional capacity and energy, and provide a
323	323	6 quantitative estimate of any such gap between
324	324	7 forecasted load and supply-side resources.
325	325	8 (C) Provide a narrative description of the
326	326	9 utility's process for evaluating possible resources to
327	327	10 secure this additional capacity and energy.
328	328	11 (D) Provide a narrative description of the
329	329	12 utility's processes for assessing the present economic
330	330	13 value of existing generation and state whether,
331	331	14 consistent with this methodology, any currently
332	332	15 operating units, if any, could be replaced by other
333	333	16 resources at lower cost to ratepayers.
334	334	17 (E) Identify a preferred portfolio of generation,
335	335	18 storage, and demand-side programs that, in the
336	336	19 utility's judgment, meets its forecasted load while
337	337	20 minimizing the ratepayer cost and environmental
338	338	21 impacts to the extent reasonably achievable in the 5
339	339	22 years covered by the action plan. The portfolio shall
340	340	23 incorporate any capacity or other reliability
341	341	24 requirements of any regional transmission organization
342	342	25 of which the utility is a member.
343	343	26 (F) Identify, if the preferred portfolio includes
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354	354	1 the construction of new generation or storage
355	355	2 resources or transmission facilities, the preferred
356	356	3 site for all new construction of generation, storage,
357	357	4 or transmission facilities.
358	358	5 (G) If the utility states that it intends to
359	359	6 remove a generation resource from service, include in
360	360	7 the integrated resource plan a statement describing
361	361	8 the utility's plan to minimize economic impacts to
362	362	9 workers due to facility retirement. This statement
363	363	10 shall include a description of:
364	364	11 (i) the utility's efforts to collaborate with
365	365	12 the workers and their designated representatives,
366	366	13 if any;
367	367	14 (ii) a transition timeline or date certain on
368	368	15 which such a transition timeline shall be made
369	369	16 available to ensure certainty for workers;
370	370	17 (iii) the utility's efforts to protect pension
371	371	18 benefits and extend or replace health insurance,
372	372	19 life insurance, and other employment benefits;
373	373	20 (iv) all training and skill development
374	374	21 programs to be made available for workers who will
375	375	22 see their employment reduced or eliminated as a
376	376	23 result of the retirement; and
377	377	24 (v) any agreements with local governments
378	378	25 regarding continuing tax or other transfer
379	379	26 payments following the facility's retirement
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390	390	1 intended to minimize the impact on local services.
391	391	2 (H) Describe any anticipated capital expenditures
392	392	3 in excess of $1,000,000 at existing generation
393	393	4 facilities and the reason for such expenditures.
394	394	5 (12) A description of all models and methodologies
395	395	6 used in performing the integrated resource planning
396	396	7 process. The utility shall provide to the Agency, upon
397	397	8 request, reasonable access to any computer models used in
398	398	9 the analysis and workpapers, in electronic form, relied on
399	399	10 in preparation of the report.
400	400	11 (e) As part of all integrated resource plans submitted in
401	401	12 2024, the utility shall identify all programs, grants, loans,
402	402	13 or tax benefits for which the utility is eligible pursuant to
403	403	14 the Inflation Reduction Act of 2022, and state whether the
404	404	15 utility has applied for or otherwise used the program, grant,
405	405	16 loan, or tax benefit. If the utility has not yet applied for or
406	406	17 utilized the benefit, the utility shall state whether it
407	407	18 intends to do so.
408	408	19 (f) Each utility shall submit, as part of its integrated
409	409	20 resource plan, a least cost plan for constructing or procuring
410	410	21 renewable energy resources to meet a minimum percentage of its
411	411	22 load for all retail customers as follows: 25% by June 1, 2026,
412	412	23 increasing by at least 3% each delivery year thereafter to at
413	413	24 least 40% by the 2030 delivery year, and continuing at no less
414	414	25 than 40% for each delivery year thereafter.
415	415	26 (g) Beginning in 2031, each utility shall submit, as part
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426	426	1 of its integrated resource plan, a least cost plan for
427	427	2 supplying 100% of its total projected load through renewable
428	428	3 generation resources in combination with storage resources and
429	429	4 demand-side programs by 2045. This least cost plan shall
430	430	5 provide for the retirement of all coal and gas generation
431	431	6 resources by January 1, 2045.
432	432	7 (h) The Agency may adopt rules establishing additional
433	433	8 requirements as to the form and content of integrated resource
434	434	9 plans, including, but not limited to, specifying forecast
435	435	10 methodologies.
436	436	11 Section 20. Stakeholder process. Prior to the submission
437	437	12 of an integrated resource plan, a municipality, municipal
438	438	13 power agency, or electric cooperative required to submit an
439	439	14 integrated resource plan shall hold at least 2 stakeholders
440	440	15 meetings open to all ratepayers and members of the public.
441	441	16 Notice of the meetings shall be sent to all customers not less
442	442	17 than 30 days prior to the meeting. During the meetings the
443	443	18 utility shall describe its processes for developing the
444	444	19 integrated resource plan and its core assumptions and
445	445	20 constraints, present its proposed preferred portfolio, and
446	446	21 describe any planned retirements, capital expenditures on
447	447	22 existing generation resources likely to exceed $1,000,000, and
448	448	23 planned construction. Each meeting shall allow time for public
449	449	24 comment and the utility shall provide attendees with a means
450	450	25 of providing public comment in writing following the meeting.
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461	461	1 Section 25. Procedures for submission of integrated
462	462	2 resource plan.
463	463	3 (a) Each municipality, municipal power agency, and
464	464	4 electric cooperative shall submit its integrated resource
465	465	5 plan, as set forth in this Act, to the Agency by October 1 of
466	466	6 the calendar year.
467	467	7 (b) The Agency may request further information from the
468	468	8 utility. Any such requests shall be made in writing. If the
469	469	9 Agency requests additional information, the utility shall
470	470	10 provide responses no later than 15 days following the request.
471	471	11 (c) The Agency shall facilitate public comment on the
472	472	12 integrated resource plan, as follows:
473	473	13 (1) upon submission of the integrated resource plan,
474	474	14 the Agency shall post the integrated resource plan
475	475	15 publicly on its website. The plan shall remain publicly
476	476	16 accessible for at least 60 days.
477	477	17 (2) the utility shall hold at least 2 public meetings,
478	478	18 one in person and one remotely, where it shall make a
479	479	19 representative available to address questions about the
480	480	20 resource plan. The meetings shall be held no sooner than
481	481	21 15 days, and no later than 45 days, after the integrated
482	482	22 resource plan is made available to the public.
483	483	23 (3) the Agency shall accept public comments on the
484	484	24 integrated resource plan for 60 days following its public
485	485	25 posting via website, email, or mail. The Agency may extend
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496	496	1 this public comment period by an additional 60 days upon
497	497	2 request by members of the public; and
498	498	3 (4) after the conclusion of the public comment period,
499	499	4 as determined by the Agency, the Agency shall transmit
500	500	5 copies of all public comments received to the utility.
501	501	6 (d) The utility shall review public comments and provide
502	502	7 responses that reasonably address all issues or questions
503	503	8 raised by such comments. The utility may modify its integrated
504	504	9 resource plan in response to these comments. The utility shall
505	505	10 prepare a document with responses to public comments and
506	506	11 submit this response document to the Agency no later than 90
507	507	12 days after receiving the comments from the agency. This
508	508	13 response document shall be posted publicly on the Agency's
509	509	14 website along with the original integrated resource plan, as
510	510	15 submitted, and any revisions made by the utility in response
511	511	16 to public comments.
512	512	17 (e) The Agency shall maintain public access to all
513	513	18 integrated resource plans submitted pursuant to this Act,
514	514	19 accessible through the Agency's website, for no less than 10
515	515	20 years following each integrated resource plan's initial
516	516	21 submission.
517	517	22 Section 30. Cost of Service Study.
518	518	23 (a) All electric cooperatives with members in this State,
519	519	24 municipal power agencies, and municipalities with $5,000,000
520	520	25 or more in total retail electricity revenues shall submit to
521	521
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531	531	1 the Agency an embedded cost-of-service study on November 1,
532	532	2 2024 and on November 1 every 3 years thereafter.
533	533	3 (b) The format and contents of such study shall be
534	534	4 consistent with those set forth in any rules or regulations by
535	535	5 the Illinois Commerce Commission for cost-of-service studies
536	536	6 by electric utilities subject to retail rate approval by the
537	537	7 Commerce Commission.
538	538	8 Section 35. Use of independent expert.
539	539	9 (a) The Agency shall maintain a list of qualified experts
540	540	10 or expert consulting firms for the purpose of developing
541	541	11 integrated resource plans on behalf of municipalities,
542	542	12 municipal power agencies, and cooperatives. In order to
543	543	13 qualify an expert or expert consulting firm must have:
544	544	14 (1) direct previous experience assembling power supply
545	545	15 plans or portfolios for utilities;
546	546	16 (2) an advanced degree in economics, mathematics,
547	547	17 engineering, risk management, or a related area of study;
548	548	18 (3) 10 years of experience in the electricity sector;
549	549	19 (4) expertise in wholesale electricity market rules,
550	550	20 including those established by the federal Energy
551	551	21 Regulatory Commission and regional transmission
552	552	22 organizations; and
553	553	23 (5) adequate resources to perform and fulfill the
554	554	24 required functions and responsibilities.
555	555	25 (b) The Agency may assemble the list as part of the process
556	556
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566	566	1 for developing a list of qualified experts for experts to
567	567	2 develop procurement plans, as set forth in subsection (a) of
568	568	3 Section 1-75 of the Illinois Power Agency Act.
569	569	4 (c) The Agency shall provide affected utilities and other
570	570	5 interested parties with the lists of qualified experts or
571	571	6 expert consulting firms identified through the request for
572	572	7 qualifications processes that are under consideration to
573	573	8 prepare the integrated resource plan on behalf of the utility.
574	574	9 The Agency shall also provide each qualified expert's or
575	575	10 expert consulting firm's response to the request for
576	576	11 qualifications. A utility shall, within 5 business days,
577	577	12 notify the Agency in writing if it objects to any experts or
578	578	13 expert consulting firms on the lists. Objections shall be
579	579	14 based on:
580	580	15 (1) the failure to satisfy qualification criteria;
581	581	16 (2) the identification of a conflict of interest; or
582	582	17 (3) the evidence of inappropriate bias for or against
583	583	18 potential bidders or the affected utilities.
584	584	19 The Agency shall remove experts or expert consulting firms
585	585	20 from the lists within 10 days if there is a reasonable basis
586	586	21 for an objection and provide the updated lists to the affected
587	587	22 utilities and other interested parties. If the Agency fails to
588	588	23 remove an expert or expert consulting firm from the list, the
589	589	24 objecting utility may withdraw its application and develop its
590	590	25 integrated resource plan without agency assistance.
591	591	26 (d) A utility required to submit an integrated resource
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602	602	1 plan may elect to rely on an expert or expert consulting firm
603	603	2 selected by the Agency to develop the plan and conduct
604	604	3 stakeholder processes.
605	605	4 (e) A utility may submit a request to the Agency, not less
606	606	5 than 6 months prior to the date on which the integrated
607	607	6 resource plan is due, for such an expert or expert consulting
608	608	7 firm.
609	609	8 (f) Upon receipt of such a request, the Agency shall issue
610	610	9 requests for proposals to the qualified experts on the list
611	611	10 assembled as set forth in subsections (a) through (c) to
612	612	11 develop an integrated resource plan for that utility. The
613	613	12 Agency shall select an expert or expert consulting firm to
614	614	13 develop the integrated resource plan on behalf of the utility
615	615	14 based on the proposals submitted.
616	616	15 (g) Subject to appropriation, if a utility elects to rely
617	617	16 on an expert or expert consulting firm selected by the Agency,
618	618	17 90% of the costs assessed by the expert for development of the
619	619	18 integrated resource plan shall be paid by the Agency, up to
620	620	19 $250,000, and the remainder paid by the utility.
621	621	20 Section 40. Electric cooperatives member access.
622	622	21 (a) As used in this Section, "meeting" has the meaning
623	623	22 given to that term in Section 1.02 of the Open Meetings Act.
624	624	23 (b) As used in this Section, except for subsection (j),
625	625	24 "member" includes all members of an electric cooperative in
626	626	25 accordance with the cooperative's bylaws. Where a generation
627	627
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637	637	1 and transmission electric cooperative's members are electric
638	638	2 cooperatives rather than individuals, members of those
639	639	3 member-cooperatives are members of the generation and
640	640	4 transmission electric cooperative for purposes of this
641	641	5 Section. As used in subsection (j), "member" includes only
642	642	6 members of an electric cooperative with individual members.
643	643	7 (c) All meetings of an electric cooperative shall be open
644	644	8 to all members, except that a cooperative, by a two-thirds
645	645	9 affirmative vote of the board members present, may go into
646	646	10 executive session for consideration of documents or
647	647	11 information deemed to be confidential for legal, commercial,
648	648	12 or personnel purposes.
649	649	13 (1) Before a board of directors convenes in executive
650	650	14 session, the board shall announce the general topic of the
651	651	15 executive session.
652	652	16 (2) Notice of all meetings of an electric cooperative
653	653	17 shall be posted on the website of the electric cooperative
654	654	18 at least 30 days prior to the meeting, except for any
655	655	19 annual meeting, which shall be posted at least 120 days
656	656	20 prior. Minutes of all meetings of an electric cooperative
657	657	21 shall be posted on the website of the electric cooperative
658	658	22 as soon as they have been approved and shall remain posted
659	659	23 for at least one year after the date of the meeting. Upon
660	660	24 request of a member, the electric cooperative shall make
661	661	25 minutes of any meeting held after the effective date of
662	662	26 this Act available. Minutes shall include the votes of
663	663
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673	673	1 each member of the board on all items for which approval
674	674	2 was not unanimous.
675	675	3 (3) At every regular meeting of the governing body of
676	676	4 an electric cooperative, members of the cooperative shall
677	677	5 be given an opportunity to address the board on any matter
678	678	6 concerning the policies and businesses of the cooperative.
679	679	7 The board may place reasonable, viewpoint-neutral
680	680	8 restrictions on the amount and duration of member comment.
681	681	9 (d) Each electric cooperative shall post on its website
682	682	10 its current rates. The electric cooperative shall keep and
683	683	11 make available to any member, upon request, all financial
684	684	12 audits of the electric cooperative conducted in the last 3
685	685	13 fiscal years.
686	686	14 (e) Each electric cooperative shall adopt and post a
687	687	15 written policy governing the election of directors on its
688	688	16 website. The electric cooperative shall provide notice of the
689	689	17 policy at the time a person becomes a member, as a bill insert
690	690	18 at least once per year, and on request. The policy shall
691	691	19 contain true and complete information on the following:
692	692	20 (1) Who is entitled to vote in an election, including
693	693	21 how member cooperatives may vote.
694	694	22 (2) How a member may obtain and cast a ballot.
695	695	23 (3) The postmark deadline for any ballots submitted by
696	696	24 mail.
697	697	25 (4) How a member may become a candidate for the board
698	698	26 or any other elected leadership positions.
699	699
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709	709	1 (f) Electric cooperatives shall enable their members to
710	710	2 vote in any election for one or more directors by mail-in
711	711	3 ballot, as follows:
712	712	4 (1) The electric cooperative shall affirmatively mail
713	713	5 each of its members a ballot no later than 30 days before
714	714	6 ballots are due. Ballots may be mailed separately and
715	715	7 clearly marked as such or included as a bill insert.
716	716	8 (2) The electric cooperative shall accept ballots by
717	717	9 mail if postmarked by the date indicated in the
718	718	10 cooperative's written policy.
719	719	11 (3) The electric cooperative may allow for in-person
720	720	12 voting in addition to mail.
721	721	13 (g) Electric cooperatives may establish a system for
722	722	14 online voting in addition to a mail-in option.
723	723	15 (h) At least 120 days before each board election, the
724	724	16 electric cooperative shall post a list of candidates and
725	725	17 deadline to return ballots on its website and leave the
726	726	18 information posted until the election has concluded. The same
727	727	19 information shall be included as part of a bill insert for a
728	728	20 billing cycle occurring at no more than 120 but no fewer than
729	729	21 15 days prior to the deadline to return ballots.
730	730	22 (i) Each candidate for a position on the board of
731	731	23 directors who has qualified under the electric cooperative's
732	732	24 bylaws is entitled to receive a membership list in electronic
733	733	25 format upon receipt and verification of any candidacy
734	734	26 requirements. Such a list shall be provided to a candidate no
735	735
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745	745	1 later than 15 days after requested by the candidate. The
746	746	2 membership list must include the names, phone numbers, and
747	747	3 addresses of all members as they appear in the electric
748	748	4 cooperative's records.
749	749	5 Section 45. Conflict of interest.
750	750	6 (a) Each electric cooperative, municipality, and municipal
751	751	7 power agency shall adopt, and post publicly on its website,
752	752	8 written policies concerning:
753	753	9 (1) The compensation provided to a director on the
754	754	10 board of directors, including information on any
755	755	11 authorized per diem amounts, and the values of other
756	756	12 benefits, services, or goods that a director receives.
757	757	13 (2) The disclosure of any gifts received by a director
758	758	14 in excess of a de minimis amount.
759	759	15 (3) The requirements and procedures for a director on
760	760	16 the board of directors to disclose in writing any
761	761	17 conflicts of interest. At a minimum, the policy must
762	762	18 require disclosure when a decision before the board could
763	763	19 provide directly and as a proximate result of the decision
764	764	20 a financial or other material benefit to:
765	765	21 (A) The director, if the benefit is unique to that
766	766	22 director and not shared by similarly situated
767	767	23 cooperative members.
768	768	24 (B) A parent, grandparent, spouse, partner in a
769	769	25 civil union, child, or sibling of the director, if the
770	770
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780	780	1 benefit is unique to that director and not shared by
781	781	2 similarly situated cooperative members.
782	782	3 (C) An entity in which the director is an officer
783	783	4 or director or has a financial interest not shared by
784	784	5 similarly situated cooperative members.
785	785	6 (b) Each electric cooperative shall disclose on its
786	786	7 website all lobbying activities as defined by Section 2 of the
787	787	8 Lobbyist Registration Act and the amount of expenditures on
788	788	9 such activities on an annual basis. Where the electric
789	789	10 cooperative is a member of a trade association or other
790	790	11 organization that engages in lobbying activities, the electric
791	791	12 cooperative shall post the amount of dues or other
792	792	13 expenditures paid by the cooperative to such an organization
793	793	14 and what percentage of the organization or association's
794	794	15 budget is spent on lobbying activities.
795	795	16 (c) Notwithstanding any other law to the contrary, if an
796	796	17 individual is a director on the board of directors of both a
797	797	18 distribution cooperative electric association and a generation
798	798	19 and transmission cooperative association, the director owes
799	799	20 fiduciary duties to both associations and shall not be
800	800	21 required to give priority to a fiduciary duty the director
801	801	22 owes to one association over the duties the director owes to
802	802	23 the other association.
803	803	24 Section 90. The Open Meetings Act is amended by changing
804	804	25 Section 2 as follows:
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815	815	1 (5 ILCS 120/2) (from Ch. 102, par. 42)
816	816	2 Sec. 2. Open meetings.
817	817	3 (a) Openness required. All meetings of public bodies shall
818	818	4 be open to the public unless excepted in subsection (c) and
819	819	5 closed in accordance with Section 2a.
820	820	6 (b) Construction of exceptions. The exceptions contained
821	821	7 in subsection (c) are in derogation of the requirement that
822	822	8 public bodies meet in the open, and therefore, the exceptions
823	823	9 are to be strictly construed, extending only to subjects
824	824	10 clearly within their scope. The exceptions authorize but do
825	825	11 not require the holding of a closed meeting to discuss a
826	826	12 subject included within an enumerated exception.
827	827	13 (c) Exceptions. A public body may hold closed meetings to
828	828	14 consider the following subjects:
829	829	15 (1) The appointment, employment, compensation,
830	830	16 discipline, performance, or dismissal of specific
831	831	17 employees, specific individuals who serve as independent
832	832	18 contractors in a park, recreational, or educational
833	833	19 setting, or specific volunteers of the public body or
834	834	20 legal counsel for the public body, including hearing
835	835	21 testimony on a complaint lodged against an employee, a
836	836	22 specific individual who serves as an independent
837	837	23 contractor in a park, recreational, or educational
838	838	24 setting, or a volunteer of the public body or against
839	839	25 legal counsel for the public body to determine its
840	840
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842	842
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846	846
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850	850	1 validity. However, a meeting to consider an increase in
851	851	2 compensation to a specific employee of a public body that
852	852	3 is subject to the Local Government Wage Increase
853	853	4 Transparency Act may not be closed and shall be open to the
854	854	5 public and posted and held in accordance with this Act.
855	855	6 (2) Collective negotiating matters between the public
856	856	7 body and its employees or their representatives, or
857	857	8 deliberations concerning salary schedules for one or more
858	858	9 classes of employees.
859	859	10 (3) The selection of a person to fill a public office,
860	860	11 as defined in this Act, including a vacancy in a public
861	861	12 office, when the public body is given power to appoint
862	862	13 under law or ordinance, or the discipline, performance or
863	863	14 removal of the occupant of a public office, when the
864	864	15 public body is given power to remove the occupant under
865	865	16 law or ordinance.
866	866	17 (4) Evidence or testimony presented in open hearing,
867	867	18 or in closed hearing where specifically authorized by law,
868	868	19 to a quasi-adjudicative body, as defined in this Act,
869	869	20 provided that the body prepares and makes available for
870	870	21 public inspection a written decision setting forth its
871	871	22 determinative reasoning.
872	872	23 (4.5) Evidence or testimony presented to a school
873	873	24 board regarding denial of admission to school events or
874	874	25 property pursuant to Section 24-24 of the School Code,
875	875	26 provided that the school board prepares and makes
876	876
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886	886	1 available for public inspection a written decision setting
887	887	2 forth its determinative reasoning.
888	888	3 (5) The purchase or lease of real property for the use
889	889	4 of the public body, including meetings held for the
890	890	5 purpose of discussing whether a particular parcel should
891	891	6 be acquired.
892	892	7 (6) The setting of a price for sale or lease of
893	893	8 property owned by the public body.
894	894	9 (7) The sale or purchase of securities, investments,
895	895	10 or investment contracts. This exception shall not apply to
896	896	11 the investment of assets or income of funds deposited into
897	897	12 the Illinois Prepaid Tuition Trust Fund.
898	898	13 (8) Security procedures, school building safety and
899	899	14 security, and the use of personnel and equipment to
900	900	15 respond to an actual, a threatened, or a reasonably
901	901	16 potential danger to the safety of employees, students,
902	902	17 staff, the public, or public property.
903	903	18 (9) Student disciplinary cases.
904	904	19 (10) The placement of individual students in special
905	905	20 education programs and other matters relating to
906	906	21 individual students.
907	907	22 (11) Litigation, when an action against, affecting or
908	908	23 on behalf of the particular public body has been filed and
909	909	24 is pending before a court or administrative tribunal, or
910	910	25 when the public body finds that an action is probable or
911	911	26 imminent, in which case the basis for the finding shall be
912	912
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914	914
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922	922	1 recorded and entered into the minutes of the closed
923	923	2 meeting.
924	924	3 (12) The establishment of reserves or settlement of
925	925	4 claims as provided in the Local Governmental and
926	926	5 Governmental Employees Tort Immunity Act, if otherwise the
927	927	6 disposition of a claim or potential claim might be
928	928	7 prejudiced, or the review or discussion of claims, loss or
929	929	8 risk management information, records, data, advice or
930	930	9 communications from or with respect to any insurer of the
931	931	10 public body or any intergovernmental risk management
932	932	11 association or self insurance pool of which the public
933	933	12 body is a member.
934	934	13 (13) Conciliation of complaints of discrimination in
935	935	14 the sale or rental of housing, when closed meetings are
936	936	15 authorized by the law or ordinance prescribing fair
937	937	16 housing practices and creating a commission or
938	938	17 administrative agency for their enforcement.
939	939	18 (14) Informant sources, the hiring or assignment of
940	940	19 undercover personnel or equipment, or ongoing, prior or
941	941	20 future criminal investigations, when discussed by a public
942	942	21 body with criminal investigatory responsibilities.
943	943	22 (15) Professional ethics or performance when
944	944	23 considered by an advisory body appointed to advise a
945	945	24 licensing or regulatory agency on matters germane to the
946	946	25 advisory body's field of competence.
947	947	26 (16) Self evaluation, practices and procedures or
948	948
949	949
950	950
951	951
952	952
953	953	SB3637 - 26 - LRB103 38841 CES 68978 b
954	954
955	955
956	956	SB3637- 27 -LRB103 38841 CES 68978 b SB3637 - 27 - LRB103 38841 CES 68978 b
957	957	SB3637 - 27 - LRB103 38841 CES 68978 b
958	958	1 professional ethics, when meeting with a representative of
959	959	2 a statewide association of which the public body is a
960	960	3 member.
961	961	4 (17) The recruitment, credentialing, discipline or
962	962	5 formal peer review of physicians or other health care
963	963	6 professionals, or for the discussion of matters protected
964	964	7 under the federal Patient Safety and Quality Improvement
965	965	8 Act of 2005, and the regulations promulgated thereunder,
966	966	9 including 42 C.F.R. Part 3 (73 FR 70732), or the federal
967	967	10 Health Insurance Portability and Accountability Act of
968	968	11 1996, and the regulations promulgated thereunder,
969	969	12 including 45 C.F.R. Parts 160, 162, and 164, by a
970	970	13 hospital, or other institution providing medical care,
971	971	14 that is operated by the public body.
972	972	15 (18) Deliberations for decisions of the Prisoner
973	973	16 Review Board.
974	974	17 (19) Review or discussion of applications received
975	975	18 under the Experimental Organ Transplantation Procedures
976	976	19 Act.
977	977	20 (20) The classification and discussion of matters
978	978	21 classified as confidential or continued confidential by
979	979	22 the State Government Suggestion Award Board.
980	980	23 (21) Discussion of minutes of meetings lawfully closed
981	981	24 under this Act, whether for purposes of approval by the
982	982	25 body of the minutes or semi-annual review of the minutes
983	983	26 as mandated by Section 2.06.
984	984
985	985
986	986
987	987
988	988
989	989	SB3637 - 27 - LRB103 38841 CES 68978 b
990	990
991	991
992	992	SB3637- 28 -LRB103 38841 CES 68978 b SB3637 - 28 - LRB103 38841 CES 68978 b
993	993	SB3637 - 28 - LRB103 38841 CES 68978 b
994	994	1 (22) Deliberations for decisions of the State
995	995	2 Emergency Medical Services Disciplinary Review Board.
996	996	3 (23) The operation by a municipality of a municipal
997	997	4 utility or the operation of a municipal power agency or
998	998	5 municipal natural gas agency when the discussion involves
999	999	6 (i) trade secrets, (ii) ongoing contract negotiations or
1000	1000	7 results of a request for proposals relating to the
1001	1001	8 purchase, sale, or delivery of electricity or natural gas
1002	1002	9 from nonaffiliate entities, or (iii) information
1003	1003	10 prohibited from disclosure by a regional transmission
1004	1004	11 organization to ensure the integrity of competitive
1005	1005	12 markets contracts relating to the purchase, sale, or
1006	1006	13 delivery of electricity or natural gas or (ii) the results
1007	1007	14 or conclusions of load forecast studies.
1008	1008	15 (24) Meetings of a residential health care facility
1009	1009	16 resident sexual assault and death review team or the
1010	1010	17 Executive Council under the Abuse Prevention Review Team
1011	1011	18 Act.
1012	1012	19 (25) Meetings of an independent team of experts under
1013	1013	20 Brian's Law.
1014	1014	21 (26) Meetings of a mortality review team appointed
1015	1015	22 under the Department of Juvenile Justice Mortality Review
1016	1016	23 Team Act.
1017	1017	24 (27) (Blank).
1018	1018	25 (28) Correspondence and records (i) that may not be
1019	1019	26 disclosed under Section 11-9 of the Illinois Public Aid
1020	1020
1021	1021
1022	1022
1023	1023
1024	1024
1025	1025	SB3637 - 28 - LRB103 38841 CES 68978 b
1026	1026
1027	1027
1028	1028	SB3637- 29 -LRB103 38841 CES 68978 b SB3637 - 29 - LRB103 38841 CES 68978 b
1029	1029	SB3637 - 29 - LRB103 38841 CES 68978 b
1030	1030	1 Code or (ii) that pertain to appeals under Section 11-8 of
1031	1031	2 the Illinois Public Aid Code.
1032	1032	3 (29) Meetings between internal or external auditors
1033	1033	4 and governmental audit committees, finance committees, and
1034	1034	5 their equivalents, when the discussion involves internal
1035	1035	6 control weaknesses, identification of potential fraud risk
1036	1036	7 areas, known or suspected frauds, and fraud interviews
1037	1037	8 conducted in accordance with generally accepted auditing
1038	1038	9 standards of the United States of America.
1039	1039	10 (30) Those meetings or portions of meetings of a
1040	1040	11 fatality review team or the Illinois Fatality Review Team
1041	1041	12 Advisory Council during which a review of the death of an
1042	1042	13 eligible adult in which abuse or neglect is suspected,
1043	1043	14 alleged, or substantiated is conducted pursuant to Section
1044	1044	15 15 of the Adult Protective Services Act.
1045	1045	16 (31) Meetings and deliberations for decisions of the
1046	1046	17 Concealed Carry Licensing Review Board under the Firearm
1047	1047	18 Concealed Carry Act.
1048	1048	19 (32) Meetings between the Regional Transportation
1049	1049	20 Authority Board and its Service Boards when the discussion
1050	1050	21 involves review by the Regional Transportation Authority
1051	1051	22 Board of employment contracts under Section 28d of the
1052	1052	23 Metropolitan Transit Authority Act and Sections 3A.18 and
1053	1053	24 3B.26 of the Regional Transportation Authority Act.
1054	1054	25 (33) Those meetings or portions of meetings of the
1055	1055	26 advisory committee and peer review subcommittee created
1056	1056
1057	1057
1058	1058
1059	1059
1060	1060
1061	1061	SB3637 - 29 - LRB103 38841 CES 68978 b
1062	1062
1063	1063
1064	1064	SB3637- 30 -LRB103 38841 CES 68978 b SB3637 - 30 - LRB103 38841 CES 68978 b
1065	1065	SB3637 - 30 - LRB103 38841 CES 68978 b
1066	1066	1 under Section 320 of the Illinois Controlled Substances
1067	1067	2 Act during which specific controlled substance prescriber,
1068	1068	3 dispenser, or patient information is discussed.
1069	1069	4 (34) Meetings of the Tax Increment Financing Reform
1070	1070	5 Task Force under Section 2505-800 of the Department of
1071	1071	6 Revenue Law of the Civil Administrative Code of Illinois.
1072	1072	7 (35) Meetings of the group established to discuss
1073	1073	8 Medicaid capitation rates under Section 5-30.8 of the
1074	1074	9 Illinois Public Aid Code.
1075	1075	10 (36) Those deliberations or portions of deliberations
1076	1076	11 for decisions of the Illinois Gaming Board in which there
1077	1077	12 is discussed any of the following: (i) personal,
1078	1078	13 commercial, financial, or other information obtained from
1079	1079	14 any source that is privileged, proprietary, confidential,
1080	1080	15 or a trade secret; or (ii) information specifically
1081	1081	16 exempted from the disclosure by federal or State law.
1082	1082	17 (37) Deliberations for decisions of the Illinois Law
1083	1083	18 Enforcement Training Standards Board, the Certification
1084	1084	19 Review Panel, and the Illinois State Police Merit Board
1085	1085	20 regarding certification and decertification.
1086	1086	21 (38) Meetings of the Ad Hoc Statewide Domestic
1087	1087	22 Violence Fatality Review Committee of the Illinois
1088	1088	23 Criminal Justice Information Authority Board that occur in
1089	1089	24 closed executive session under subsection (d) of Section
1090	1090	25 35 of the Domestic Violence Fatality Review Act.
1091	1091	26 (39) Meetings of the regional review teams under
1092	1092
1093	1093
1094	1094
1095	1095
1096	1096
1097	1097	SB3637 - 30 - LRB103 38841 CES 68978 b
1098	1098
1099	1099
1100	1100	SB3637- 31 -LRB103 38841 CES 68978 b SB3637 - 31 - LRB103 38841 CES 68978 b
1101	1101	SB3637 - 31 - LRB103 38841 CES 68978 b
1102	1102	1 subsection (a) of Section 75 of the Domestic Violence
1103	1103	2 Fatality Review Act.
1104	1104	3 (40) Meetings of the Firearm Owner's Identification
1105	1105	4 Card Review Board under Section 10 of the Firearm Owners
1106	1106	5 Identification Card Act.
1107	1107	6 (d) Definitions. For purposes of this Section:
1108	1108	7 "Employee" means a person employed by a public body whose
1109	1109	8 relationship with the public body constitutes an
1110	1110	9 employer-employee relationship under the usual common law
1111	1111	10 rules, and who is not an independent contractor.
1112	1112	11 "Public office" means a position created by or under the
1113	1113	12 Constitution or laws of this State, the occupant of which is
1114	1114	13 charged with the exercise of some portion of the sovereign
1115	1115	14 power of this State. The term "public office" shall include
1116	1116	15 members of the public body, but it shall not include
1117	1117	16 organizational positions filled by members thereof, whether
1118	1118	17 established by law or by a public body itself, that exist to
1119	1119	18 assist the body in the conduct of its business.
1120	1120	19 "Quasi-adjudicative body" means an administrative body
1121	1121	20 charged by law or ordinance with the responsibility to conduct
1122	1122	21 hearings, receive evidence or testimony and make
1123	1123	22 determinations based thereon, but does not include local
1124	1124	23 electoral boards when such bodies are considering petition
1125	1125	24 challenges.
1126	1126	25 (e) Final action. No final action may be taken at a closed
1127	1127	26 meeting. Final action shall be preceded by a public recital of
1128	1128
1129	1129
1130	1130
1131	1131
1132	1132
1133	1133	SB3637 - 31 - LRB103 38841 CES 68978 b
1134	1134
1135	1135
1136	1136	SB3637- 32 -LRB103 38841 CES 68978 b SB3637 - 32 - LRB103 38841 CES 68978 b
1137	1137	SB3637 - 32 - LRB103 38841 CES 68978 b
1138	1138	1 the nature of the matter being considered and other
1139	1139	2 information that will inform the public of the business being
1140	1140	3 conducted.
1141	1141	4 (Source: P.A. 102-237, eff. 1-1-22; 102-520, eff. 8-20-21;
1142	1142	5 102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-311, eff.
1143	1143	6 7-28-23.)
1144	1144	7 Section 95. The Illinois Power Agency Act is amended by
1145	1145	8 changing Sections 1-5 and 1-20 as follows:
1146	1146	9 (20 ILCS 3855/1-5)
1147	1147	10 Sec. 1-5. Legislative declarations and findings. The
1148	1148	11 General Assembly finds and declares:
1149	1149	12 (1) The health, welfare, and prosperity of all
1150	1150	13 Illinois residents require the provision of adequate,
1151	1151	14 reliable, affordable, efficient, and environmentally
1152	1152	15 sustainable electric service at the lowest total cost over
1153	1153	16 time, taking into account any benefits of price stability.
1154	1154	17 (1.5) To provide the highest quality of life for the
1155	1155	18 residents of Illinois and to provide for a clean and
1156	1156	19 healthy environment, it is the policy of this State to
1157	1157	20 rapidly transition to 100% clean energy by 2050.
1158	1158	21 (2) (Blank).
1159	1159	22 (3) (Blank).
1160	1160	23 (4) It is necessary to improve the process of
1161	1161	24 procuring electricity to serve Illinois residents, to
1162	1162
1163	1163
1164	1164
1165	1165
1166	1166
1167	1167	SB3637 - 32 - LRB103 38841 CES 68978 b
1168	1168
1169	1169
1170	1170	SB3637- 33 -LRB103 38841 CES 68978 b SB3637 - 33 - LRB103 38841 CES 68978 b
1171	1171	SB3637 - 33 - LRB103 38841 CES 68978 b
1172	1172	1 promote investment in energy efficiency and
1173	1173	2 demand-response measures, and to maintain and support
1174	1174	3 development of clean coal technologies, generation
1175	1175	4 resources that operate at all hours of the day and under
1176	1176	5 all weather conditions, zero emission facilities, and
1177	1177	6 renewable resources.
1178	1178	7 (5) Procuring a diverse electricity supply portfolio
1179	1179	8 will ensure the lowest total cost over time for adequate,
1180	1180	9 reliable, efficient, and environmentally sustainable
1181	1181	10 electric service.
1182	1182	11 (6) Including renewable resources and zero emission
1183	1183	12 credits from zero emission facilities in that portfolio
1184	1184	13 will reduce long-term direct and indirect costs to
1185	1185	14 consumers by decreasing environmental impacts and by
1186	1186	15 avoiding or delaying the need for new generation,
1187	1187	16 transmission, and distribution infrastructure. Developing
1188	1188	17 new renewable energy resources in Illinois, including
1189	1189	18 brownfield solar projects and community solar projects,
1190	1190	19 will help to diversify Illinois electricity supply, avoid
1191	1191	20 and reduce pollution, reduce peak demand, and enhance
1192	1192	21 public health and well-being of Illinois residents.
1193	1193	22 (7) Developing community solar projects in Illinois
1194	1194	23 will help to expand access to renewable energy resources
1195	1195	24 to more Illinois residents.
1196	1196	25 (8) Developing brownfield solar projects in Illinois
1197	1197	26 will help return blighted or contaminated land to
1198	1198
1199	1199
1200	1200
1201	1201
1202	1202
1203	1203	SB3637 - 33 - LRB103 38841 CES 68978 b
1204	1204
1205	1205
1206	1206	SB3637- 34 -LRB103 38841 CES 68978 b SB3637 - 34 - LRB103 38841 CES 68978 b
1207	1207	SB3637 - 34 - LRB103 38841 CES 68978 b
1208	1208	1 productive use while enhancing public health and the
1209	1209	2 well-being of Illinois residents, including those in
1210	1210	3 environmental justice communities.
1211	1211	4 (9) Energy efficiency, demand-response measures, zero
1212	1212	5 emission energy, and renewable energy are resources
1213	1213	6 currently underused in Illinois. These resources should be
1214	1214	7 used, when cost effective, to reduce costs to consumers,
1215	1215	8 improve reliability, and improve environmental quality and
1216	1216	9 public health.
1217	1217	10 (10) The State should encourage the use of advanced
1218	1218	11 clean coal technologies that capture and sequester carbon
1219	1219	12 dioxide emissions to advance environmental protection
1220	1220	13 goals and to demonstrate the viability of coal and
1221	1221	14 coal-derived fuels in a carbon-constrained economy.
1222	1222	15 (10.5) The State should encourage the development of
1223	1223	16 interregional high voltage direct current (HVDC)
1224	1224	17 transmission lines that benefit Illinois. All ratepayers
1225	1225	18 in the State served by the regional transmission
1226	1226	19 organization where the HVDC converter station is
1227	1227	20 interconnected benefit from the long-term price stability
1228	1228	21 and market access provided by interregional HVDC
1229	1229	22 transmission facilities. The benefits to Illinois include:
1230	1230	23 reduction in wholesale power prices; access to lower-cost
1231	1231	24 markets; enabling the integration of additional renewable
1232	1232	25 generating units within the State through near
1233	1233	26 instantaneous dispatchability and the provision of
1234	1234
1235	1235
1236	1236
1237	1237
1238	1238
1239	1239	SB3637 - 34 - LRB103 38841 CES 68978 b
1240	1240
1241	1241
1242	1242	SB3637- 35 -LRB103 38841 CES 68978 b SB3637 - 35 - LRB103 38841 CES 68978 b
1243	1243	SB3637 - 35 - LRB103 38841 CES 68978 b
1244	1244	1 ancillary services; creating good-paying union jobs in
1245	1245	2 Illinois; and, enhancing grid reliability and climate
1246	1246	3 resilience via HVDC facilities that are installed
1247	1247	4 underground.
1248	1248	5 (10.6) The health, welfare, and safety of the people
1249	1249	6 of the State are advanced by developing new HVDC
1250	1250	7 transmission lines predominantly along transportation
1251	1251	8 rights-of-way, with an HVDC converter station that is
1252	1252	9 located in the service territory of a public utility as
1253	1253	10 defined in Section 3-105 of the Public Utilities Act
1254	1254	11 serving more than 3,000,000 retail customers, and with a
1255	1255	12 project labor agreement as defined in Section 1-10 of this
1256	1256	13 Act.
1257	1257	14 (11) The General Assembly enacted Public Act 96-0795
1258	1258	15 to reform the State's purchasing processes, recognizing
1259	1259	16 that government procurement is susceptible to abuse if
1260	1260	17 structural and procedural safeguards are not in place to
1261	1261	18 ensure independence, insulation, oversight, and
1262	1262	19 transparency.
1263	1263	20 (12) The principles that underlie the procurement
1264	1264	21 reform legislation apply also in the context of power
1265	1265	22 purchasing.
1266	1266	23 (13) To ensure that the benefits of installing
1267	1267	24 renewable resources are available to all Illinois
1268	1268	25 residents and located across the State, subject to
1269	1269	26 appropriation, it is necessary for the Agency to provide
1270	1270
1271	1271
1272	1272
1273	1273
1274	1274
1275	1275	SB3637 - 35 - LRB103 38841 CES 68978 b
1276	1276
1277	1277
1278	1278	SB3637- 36 -LRB103 38841 CES 68978 b SB3637 - 36 - LRB103 38841 CES 68978 b
1279	1279	SB3637 - 36 - LRB103 38841 CES 68978 b
1280	1280	1 public information and educational resources on how
1281	1281	2 residents can benefit from the expansion of renewable
1282	1282	3 energy in Illinois and participate in the Illinois Solar
1283	1283	4 for All Program established in Section 1-56, the
1284	1284	5 Adjustable Block program established in Section 1-75, the
1285	1285	6 job training programs established by paragraph (1) of
1286	1286	7 subsection (a) of Section 16-108.12 of the Public
1287	1287	8 Utilities Act, and the programs and resources established
1288	1288	9 by the Energy Transition Act.
1289	1289	10 (14) To ensure the State's clean energy goals are
1290	1290	11 timely met and that reliable clean energy is produced and
1291	1291	12 available when customers need it, the Agency should begin
1292	1292	13 to procure clean power and encourage storage, including
1293	1293	14 through long-term contracts. Where the comparison shows
1294	1294	15 that clean products can be procured at or near the cost of
1295	1295	16 non-renewable products, the clean products should be
1296	1296	17 procured. This requirement will limit the State's
1297	1297	18 dependence on fossil generation and reduce the potential
1298	1298	19 need to import fossil-fueled power.
1299	1299	20 The General Assembly therefore finds that it is necessary
1300	1300	21 to create the Illinois Power Agency and that the goals and
1301	1301	22 objectives of that Agency are to accomplish each of the
1302	1302	23 following:
1303	1303	24 (A) Develop electricity procurement plans to ensure
1304	1304	25 adequate, reliable, affordable, efficient, and
1305	1305	26 environmentally sustainable electric service at the lowest
1306	1306
1307	1307
1308	1308
1309	1309
1310	1310
1311	1311	SB3637 - 36 - LRB103 38841 CES 68978 b
1312	1312
1313	1313
1314	1314	SB3637- 37 -LRB103 38841 CES 68978 b SB3637 - 37 - LRB103 38841 CES 68978 b
1315	1315	SB3637 - 37 - LRB103 38841 CES 68978 b
1316	1316	1 total cost over time, taking into account any benefits of
1317	1317	2 price stability, for electric utilities that on December
1318	1318	3 31, 2005 provided electric service to at least 100,000
1319	1319	4 customers in Illinois and for small multi-jurisdictional
1320	1320	5 electric utilities that (i) on December 31, 2005 served
1321	1321	6 less than 100,000 customers in Illinois and (ii) request a
1322	1322	7 procurement plan for their Illinois jurisdictional load.
1323	1323	8 The procurement plan shall be updated on an annual basis
1324	1324	9 and shall include renewable energy resources and,
1325	1325	10 beginning with the delivery year commencing June 1, 2017,
1326	1326	11 zero emission credits from zero emission facilities
1327	1327	12 sufficient to achieve the standards specified in this Act.
1328	1328	13 (B) Conduct the competitive procurement processes
1329	1329	14 identified in this Act.
1330	1330	15 (C) Develop electric generation and co-generation
1331	1331	16 facilities that use indigenous coal or renewable
1332	1332	17 resources, or both, financed with bonds issued by the
1333	1333	18 Illinois Finance Authority.
1334	1334	19 (D) Supply electricity from the Agency's facilities at
1335	1335	20 cost to one or more of the following: municipal electric
1336	1336	21 systems, governmental aggregators, or rural electric
1337	1337	22 cooperatives in Illinois.
1338	1338	23 (E) Ensure that the process of power procurement is
1339	1339	24 conducted in an ethical and transparent fashion, immune
1340	1340	25 from improper influence.
1341	1341	26 (F) Continue to review its policies and practices to
1342	1342
1343	1343
1344	1344
1345	1345
1346	1346
1347	1347	SB3637 - 37 - LRB103 38841 CES 68978 b
1348	1348
1349	1349
1350	1350	SB3637- 38 -LRB103 38841 CES 68978 b SB3637 - 38 - LRB103 38841 CES 68978 b
1351	1351	SB3637 - 38 - LRB103 38841 CES 68978 b
1352	1352	1 determine how best to meet its mission of providing the
1353	1353	2 lowest cost power to the greatest number of people, at any
1354	1354	3 given point in time, in accordance with applicable law.
1355	1355	4 (G) Operate in a structurally insulated, independent,
1356	1356	5 and transparent fashion so that nothing impedes the
1357	1357	6 Agency's mission to secure power at the best prices the
1358	1358	7 market will bear, provided that the Agency meets all
1359	1359	8 applicable legal requirements.
1360	1360	9 (H) Implement renewable energy procurement and
1361	1361	10 training programs throughout the State to diversify
1362	1362	11 Illinois electricity supply, improve reliability, avoid
1363	1363	12 and reduce pollution, reduce peak demand, and enhance
1364	1364	13 public health and well-being of Illinois residents,
1365	1365	14 including low-income residents.
1366	1366	15 (Source: P.A. 102-662, eff. 9-15-21.)
1367	1367	16 (20 ILCS 3855/1-20)
1368	1368	17 Sec. 1-20. General powers and duties of the Agency.
1369	1369	18 (a) The Agency is authorized to do each of the following:
1370	1370	19 (1) Develop electricity procurement plans to ensure
1371	1371	20 adequate, reliable, affordable, efficient, and
1372	1372	21 environmentally sustainable electric service at the lowest
1373	1373	22 total cost over time, taking into account any benefits of
1374	1374	23 price stability, for electric utilities that on December
1375	1375	24 31, 2005 provided electric service to at least 100,000
1376	1376	25 customers in Illinois and for small multi-jurisdictional
1377	1377
1378	1378
1379	1379
1380	1380
1381	1381
1382	1382	SB3637 - 38 - LRB103 38841 CES 68978 b
1383	1383
1384	1384
1385	1385	SB3637- 39 -LRB103 38841 CES 68978 b SB3637 - 39 - LRB103 38841 CES 68978 b
1386	1386	SB3637 - 39 - LRB103 38841 CES 68978 b
1387	1387	1 electric utilities that (A) on December 31, 2005 served
1388	1388	2 less than 100,000 customers in Illinois and (B) request a
1389	1389	3 procurement plan for their Illinois jurisdictional load.
1390	1390	4 Except as provided in paragraph (1.5) of this subsection
1391	1391	5 (a), the electricity procurement plans shall be updated on
1392	1392	6 an annual basis and shall include electricity generated
1393	1393	7 from renewable resources sufficient to achieve the
1394	1394	8 standards specified in this Act. Beginning with the
1395	1395	9 delivery year commencing June 1, 2017, develop procurement
1396	1396	10 plans to include zero emission credits generated from zero
1397	1397	11 emission facilities sufficient to achieve the standards
1398	1398	12 specified in this Act. Beginning with the delivery year
1399	1399	13 commencing on June 1, 2022, the Agency is authorized to
1400	1400	14 develop carbon mitigation credit procurement plans to
1401	1401	15 include carbon mitigation credits generated from
1402	1402	16 carbon-free energy resources sufficient to achieve the
1403	1403	17 standards specified in this Act.
1404	1404	18 (1.5) Develop a long-term renewable resources
1405	1405	19 procurement plan in accordance with subsection (c) of
1406	1406	20 Section 1-75 of this Act for renewable energy credits in
1407	1407	21 amounts sufficient to achieve the standards specified in
1408	1408	22 this Act for delivery years commencing June 1, 2017 and
1409	1409	23 for the programs and renewable energy credits specified in
1410	1410	24 Section 1-56 of this Act. Electricity procurement plans
1411	1411	25 for delivery years commencing after May 31, 2017, shall
1412	1412	26 not include procurement of renewable energy resources.
1413	1413
1414	1414
1415	1415
1416	1416
1417	1417
1418	1418	SB3637 - 39 - LRB103 38841 CES 68978 b
1419	1419
1420	1420
1421	1421	SB3637- 40 -LRB103 38841 CES 68978 b SB3637 - 40 - LRB103 38841 CES 68978 b
1422	1422	SB3637 - 40 - LRB103 38841 CES 68978 b
1423	1423	1 (2) Conduct competitive procurement processes to
1424	1424	2 procure the supply resources identified in the electricity
1425	1425	3 procurement plan, pursuant to Section 16-111.5 of the
1426	1426	4 Public Utilities Act, and, for the delivery year
1427	1427	5 commencing June 1, 2017, conduct procurement processes to
1428	1428	6 procure zero emission credits from zero emission
1429	1429	7 facilities, under subsection (d-5) of Section 1-75 of this
1430	1430	8 Act. For the delivery year commencing June 1, 2022, the
1431	1431	9 Agency is authorized to conduct procurement processes to
1432	1432	10 procure carbon mitigation credits from carbon-free energy
1433	1433	11 resources, under subsection (d-10) of Section 1-75 of this
1434	1434	12 Act.
1435	1435	13 (2.5) Beginning with the procurement for the 2017
1436	1436	14 delivery year, conduct competitive procurement processes
1437	1437	15 and implement programs to procure renewable energy credits
1438	1438	16 identified in the long-term renewable resources
1439	1439	17 procurement plan developed and approved under subsection
1440	1440	18 (c) of Section 1-75 of this Act and Section 16-111.5 of the
1441	1441	19 Public Utilities Act.
1442	1442	20 (2.10) Oversee the procurement by electric utilities
1443	1443	21 that served more than 300,000 customers in this State as
1444	1444	22 of January 1, 2019 of renewable energy credits from new
1445	1445	23 renewable energy facilities to be installed, along with
1446	1446	24 energy storage facilities, at or adjacent to the sites of
1447	1447	25 electric generating facilities that burned coal as their
1448	1448	26 primary fuel source as of January 1, 2016 in accordance
1449	1449
1450	1450
1451	1451
1452	1452
1453	1453
1454	1454	SB3637 - 40 - LRB103 38841 CES 68978 b
1455	1455
1456	1456
1457	1457	SB3637- 41 -LRB103 38841 CES 68978 b SB3637 - 41 - LRB103 38841 CES 68978 b
1458	1458	SB3637 - 41 - LRB103 38841 CES 68978 b
1459	1459	1 with subsection (c-5) of Section 1-75 of this Act.
1460	1460	2 (2.15) Oversee the procurement by electric utilities
1461	1461	3 of renewable energy credits from newly modernized or
1462	1462	4 retooled hydropower dams or dams that have been converted
1463	1463	5 to support hydropower generation.
1464	1464	6 (3) Develop electric generation and co-generation
1465	1465	7 facilities that use indigenous coal or renewable
1466	1466	8 resources, or both, financed with bonds issued by the
1467	1467	9 Illinois Finance Authority.
1468	1468	10 (4) Supply electricity from the Agency's facilities at
1469	1469	11 cost to one or more of the following: municipal electric
1470	1470	12 systems, governmental aggregators, or rural electric
1471	1471	13 cooperatives in Illinois.
1472	1472	14 (b) Except as otherwise limited by this Act, the Agency
1473	1473	15 has all of the powers necessary or convenient to carry out the
1474	1474	16 purposes and provisions of this Act, including without
1475	1475	17 limitation, each of the following:
1476	1476	18 (1) To have a corporate seal, and to alter that seal at
1477	1477	19 pleasure, and to use it by causing it or a facsimile to be
1478	1478	20 affixed or impressed or reproduced in any other manner.
1479	1479	21 (2) To use the services of the Illinois Finance
1480	1480	22 Authority necessary to carry out the Agency's purposes.
1481	1481	23 (3) To negotiate and enter into loan agreements and
1482	1482	24 other agreements with the Illinois Finance Authority.
1483	1483	25 (4) To obtain and employ personnel and hire
1484	1484	26 consultants that are necessary to fulfill the Agency's
1485	1485
1486	1486
1487	1487
1488	1488
1489	1489
1490	1490	SB3637 - 41 - LRB103 38841 CES 68978 b
1491	1491
1492	1492
1493	1493	SB3637- 42 -LRB103 38841 CES 68978 b SB3637 - 42 - LRB103 38841 CES 68978 b
1494	1494	SB3637 - 42 - LRB103 38841 CES 68978 b
1495	1495	1 purposes, and to make expenditures for that purpose within
1496	1496	2 the appropriations for that purpose.
1497	1497	3 (5) To purchase, receive, take by grant, gift, devise,
1498	1498	4 bequest, or otherwise, lease, or otherwise acquire, own,
1499	1499	5 hold, improve, employ, use, and otherwise deal in and
1500	1500	6 with, real or personal property whether tangible or
1501	1501	7 intangible, or any interest therein, within the State.
1502	1502	8 (6) To acquire real or personal property, whether
1503	1503	9 tangible or intangible, including without limitation
1504	1504	10 property rights, interests in property, franchises,
1505	1505	11 obligations, contracts, and debt and equity securities,
1506	1506	12 and to do so by the exercise of the power of eminent domain
1507	1507	13 in accordance with Section 1-21; except that any real
1508	1508	14 property acquired by the exercise of the power of eminent
1509	1509	15 domain must be located within the State.
1510	1510	16 (7) To sell, convey, lease, exchange, transfer,
1511	1511	17 abandon, or otherwise dispose of, or mortgage, pledge, or
1512	1512	18 create a security interest in, any of its assets,
1513	1513	19 properties, or any interest therein, wherever situated.
1514	1514	20 (8) To purchase, take, receive, subscribe for, or
1515	1515	21 otherwise acquire, hold, make a tender offer for, vote,
1516	1516	22 employ, sell, lend, lease, exchange, transfer, or
1517	1517	23 otherwise dispose of, mortgage, pledge, or grant a
1518	1518	24 security interest in, use, and otherwise deal in and with,
1519	1519	25 bonds and other obligations, shares, or other securities
1520	1520	26 (or interests therein) issued by others, whether engaged
1521	1521
1522	1522
1523	1523
1524	1524
1525	1525
1526	1526	SB3637 - 42 - LRB103 38841 CES 68978 b
1527	1527
1528	1528
1529	1529	SB3637- 43 -LRB103 38841 CES 68978 b SB3637 - 43 - LRB103 38841 CES 68978 b
1530	1530	SB3637 - 43 - LRB103 38841 CES 68978 b
1531	1531	1 in a similar or different business or activity.
1532	1532	2 (9) To make and execute agreements, contracts, and
1533	1533	3 other instruments necessary or convenient in the exercise
1534	1534	4 of the powers and functions of the Agency under this Act,
1535	1535	5 including contracts with any person, including personal
1536	1536	6 service contracts, or with any local government, State
1537	1537	7 agency, or other entity; and all State agencies and all
1538	1538	8 local governments are authorized to enter into and do all
1539	1539	9 things necessary to perform any such agreement, contract,
1540	1540	10 or other instrument with the Agency. No such agreement,
1541	1541	11 contract, or other instrument shall exceed 40 years.
1542	1542	12 (10) To lend money, invest and reinvest its funds in
1543	1543	13 accordance with the Public Funds Investment Act, and take
1544	1544	14 and hold real and personal property as security for the
1545	1545	15 payment of funds loaned or invested.
1546	1546	16 (11) To borrow money at such rate or rates of interest
1547	1547	17 as the Agency may determine, issue its notes, bonds, or
1548	1548	18 other obligations to evidence that indebtedness, and
1549	1549	19 secure any of its obligations by mortgage or pledge of its
1550	1550	20 real or personal property, machinery, equipment,
1551	1551	21 structures, fixtures, inventories, revenues, grants, and
1552	1552	22 other funds as provided or any interest therein, wherever
1553	1553	23 situated.
1554	1554	24 (12) To enter into agreements with the Illinois
1555	1555	25 Finance Authority to issue bonds whether or not the income
1556	1556	26 therefrom is exempt from federal taxation.
1557	1557
1558	1558
1559	1559
1560	1560
1561	1561
1562	1562	SB3637 - 43 - LRB103 38841 CES 68978 b
1563	1563
1564	1564
1565	1565	SB3637- 44 -LRB103 38841 CES 68978 b SB3637 - 44 - LRB103 38841 CES 68978 b
1566	1566	SB3637 - 44 - LRB103 38841 CES 68978 b
1567	1567	1 (13) To procure insurance against any loss in
1568	1568	2 connection with its properties or operations in such
1569	1569	3 amount or amounts and from such insurers, including the
1570	1570	4 federal government, as it may deem necessary or desirable,
1571	1571	5 and to pay any premiums therefor.
1572	1572	6 (14) To negotiate and enter into agreements with
1573	1573	7 trustees or receivers appointed by United States
1574	1574	8 bankruptcy courts or federal district courts or in other
1575	1575	9 proceedings involving adjustment of debts and authorize
1576	1576	10 proceedings involving adjustment of debts and authorize
1577	1577	11 legal counsel for the Agency to appear in any such
1578	1578	12 proceedings.
1579	1579	13 (15) To file a petition under Chapter 9 of Title 11 of
1580	1580	14 the United States Bankruptcy Code or take other similar
1581	1581	15 action for the adjustment of its debts.
1582	1582	16 (16) To enter into management agreements for the
1583	1583	17 operation of any of the property or facilities owned by
1584	1584	18 the Agency.
1585	1585	19 (17) To enter into an agreement to transfer and to
1586	1586	20 transfer any land, facilities, fixtures, or equipment of
1587	1587	21 the Agency to one or more municipal electric systems,
1588	1588	22 governmental aggregators, or rural electric agencies or
1589	1589	23 cooperatives, for such consideration and upon such terms
1590	1590	24 as the Agency may determine to be in the best interest of
1591	1591	25 the residents of Illinois.
1592	1592	26 (18) To enter upon any lands and within any building
1593	1593
1594	1594
1595	1595
1596	1596
1597	1597
1598	1598	SB3637 - 44 - LRB103 38841 CES 68978 b
1599	1599
1600	1600
1601	1601	SB3637- 45 -LRB103 38841 CES 68978 b SB3637 - 45 - LRB103 38841 CES 68978 b
1602	1602	SB3637 - 45 - LRB103 38841 CES 68978 b
1603	1603	1 whenever in its judgment it may be necessary for the
1604	1604	2 purpose of making surveys and examinations to accomplish
1605	1605	3 any purpose authorized by this Act.
1606	1606	4 (19) To maintain an office or offices at such place or
1607	1607	5 places in the State as it may determine.
1608	1608	6 (20) To request information, and to make any inquiry,
1609	1609	7 investigation, survey, or study that the Agency may deem
1610	1610	8 necessary to enable it effectively to carry out the
1611	1611	9 provisions of this Act.
1612	1612	10 (21) To accept and expend appropriations.
1613	1613	11 (22) To engage in any activity or operation that is
1614	1614	12 incidental to and in furtherance of efficient operation to
1615	1615	13 accomplish the Agency's purposes, including hiring
1616	1616	14 employees that the Director deems essential for the
1617	1617	15 operations of the Agency.
1618	1618	16 (23) To adopt, revise, amend, and repeal rules with
1619	1619	17 respect to its operations, properties, and facilities as
1620	1620	18 may be necessary or convenient to carry out the purposes
1621	1621	19 of this Act, subject to the provisions of the Illinois
1622	1622	20 Administrative Procedure Act and Sections 1-22 and 1-35 of
1623	1623	21 this Act.
1624	1624	22 (24) To establish and collect charges and fees as
1625	1625	23 described in this Act.
1626	1626	24 (25) To conduct competitive gasification feedstock
1627	1627	25 procurement processes to procure the feedstocks for the
1628	1628	26 clean coal SNG brownfield facility in accordance with the
1629	1629
1630	1630
1631	1631
1632	1632
1633	1633
1634	1634	SB3637 - 45 - LRB103 38841 CES 68978 b
1635	1635
1636	1636
1637	1637	SB3637- 46 -LRB103 38841 CES 68978 b SB3637 - 46 - LRB103 38841 CES 68978 b
1638	1638	SB3637 - 46 - LRB103 38841 CES 68978 b
1639	1639	1 requirements of Section 1-78 of this Act.
1640	1640	2 (26) To review, revise, and approve sourcing
1641	1641	3 agreements and mediate and resolve disputes between gas
1642	1642	4 utilities and the clean coal SNG brownfield facility
1643	1643	5 pursuant to subsection (h-1) of Section 9-220 of the
1644	1644	6 Public Utilities Act.
1645	1645	7 (27) To request, review and accept proposals, execute
1646	1646	8 contracts, purchase renewable energy credits and otherwise
1647	1647	9 dedicate funds from the Illinois Power Agency Renewable
1648	1648	10 Energy Resources Fund to create and carry out the
1649	1649	11 objectives of the Illinois Solar for All Program in
1650	1650	12 accordance with Section 1-56 of this Act.
1651	1651	13 (28) To ensure Illinois residents and business benefit
1652	1652	14 from programs administered by the Agency and are properly
1653	1653	15 protected from any deceptive or misleading marketing
1654	1654	16 practices by participants in the Agency's programs and
1655	1655	17 procurements.
1656	1656	18 (c) In conducting the procurement of electricity or other
1657	1657	19 products, beginning January 1, 2022, the Agency shall not
1658	1658	20 procure any products or services from persons or organizations
1659	1659	21 that are in violation of the Displaced Energy Workers Bill of
1660	1660	22 Rights, as provided under the Energy Community Reinvestment
1661	1661	23 Act at the time of the procurement event or fail to comply the
1662	1662	24 labor standards established in subparagraph (Q) of paragraph
1663	1663	25 (1) of subsection (c) of Section 1-75.
1664	1664	26 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
1665	1665
1666	1666
1667	1667
1668	1668
1669	1669
1670	1670	SB3637 - 46 - LRB103 38841 CES 68978 b
1671	1671
1672	1672
1673	1673	SB3637- 47 -LRB103 38841 CES 68978 b SB3637 - 47 - LRB103 38841 CES 68978 b
1674	1674	SB3637 - 47 - LRB103 38841 CES 68978 b
1675	1675	1 Section 100. The Illinois Municipal Code is amended by
1676	1676	2 changing Sections 11-119.1-4 and 11-119.1-10 and by adding
1677	1677	3 Section 11-119.1-5.5 as follows:
1678	1678	4 (65 ILCS 5/11-119.1-4) (from Ch. 24, par. 11-119.1-4)
1679	1679	5 Sec. 11-119.1-4. Municipal Power Agencies.
1680	1680	6 A. Any 2 or more municipalities, contiguous or
1681	1681	7 noncontiguous, and which operate an electric utility system,
1682	1682	8 may form a municipal power agency by the execution of an agency
1683	1683	9 agreement authorized by an ordinance adopted by the governing
1684	1684	10 body of each municipality. The agency agreement may state:
1685	1685	11 (1) that the municipal power agency is created and
1686	1686	12 incorporated under the provisions of this Division as a
1687	1687	13 body politic and corporate, municipal corporation and unit
1688	1688	14 of local government of the State of Illinois;
1689	1689	15 (2) the name of the agency and the date of its
1690	1690	16 establishment;
1691	1691	17 (3) that names of the municipalities which have
1692	1692	18 adopted the agency agreement and constitute the initial
1693	1693	19 members of the municipal power agency;
1694	1694	20 (4) the names and addresses of the persons initially
1695	1695	21 appointed in the ordinances adopting the agency agreement
1696	1696	22 to serve on the Board of Directors and act as the
1697	1697	23 representatives of the municipalities, respectively, in
1698	1698	24 the exercise of their powers as members;
1699	1699
1700	1700
1701	1701
1702	1702
1703	1703
1704	1704	SB3637 - 47 - LRB103 38841 CES 68978 b
1705	1705
1706	1706
1707	1707	SB3637- 48 -LRB103 38841 CES 68978 b SB3637 - 48 - LRB103 38841 CES 68978 b
1708	1708	SB3637 - 48 - LRB103 38841 CES 68978 b
1709	1709	1 (5) the limitations, if any, upon the terms of office
1710	1710	2 of the directors, provided that such directors shall
1711	1711	3 always be selected and vacancies in their offices declared
1712	1712	4 and filled by ordinances adopted by the governing body of
1713	1713	5 the respective municipalities;
1714	1714	6 (6) the location by city, village or incorporated town
1715	1715	7 in the State of Illinois of the principal office of the
1716	1716	8 municipal power agency;
1717	1717	9 (7) provisions for the disposition, division or
1718	1718	10 distribution of obligations, property and assets of the
1719	1719	11 municipal power agency upon dissolution; and
1720	1720	12 (8) any other provisions for regulating the business
1721	1721	13 of the municipal power agency or the conduct of its
1722	1722	14 affairs which may be agreed to by the member
1723	1723	15 municipalities, consistent with this Division, including,
1724	1724	16 without limitation, any provisions for weighted voting
1725	1725	17 among the member municipalities or by the directors.
1726	1726	18 B. The presiding officer of the Board of Directors of any
1727	1727	19 municipal power agency established pursuant to this Division
1728	1728	20 or such other officer selected by the Board of Directors,
1729	1729	21 within 3 months after establishment, shall file a certified
1730	1730	22 copy of the agency agreement and a list of the municipalities
1731	1731	23 which have adopted the agreement with the recorder of deeds of
1732	1732	24 the county in which the principal office is located. The
1733	1733	25 recorder of deeds shall record this certified copy and list
1734	1734	26 and shall immediately transmit the certified copy and list to
1735	1735
1736	1736
1737	1737
1738	1738
1739	1739
1740	1740	SB3637 - 48 - LRB103 38841 CES 68978 b
1741	1741
1742	1742
1743	1743	SB3637- 49 -LRB103 38841 CES 68978 b SB3637 - 49 - LRB103 38841 CES 68978 b
1744	1744	SB3637 - 49 - LRB103 38841 CES 68978 b
1745	1745	1 the Secretary of State, together with his certificate of
1746	1746	2 recordation. The Secretary of State shall file these documents
1747	1747	3 and issue his certificate of approval over his signature and
1748	1748	4 the Great Seal of the State. The Secretary of State shall make
1749	1749	5 and keep a register of municipal power agencies established
1750	1750	6 under this Division.
1751	1751	7 C. Each municipality which becomes a member of the
1752	1752	8 municipal power agency shall appoint a representative to serve
1753	1753	9 on the Board of Directors, which representative may be a
1754	1754	10 member of the governing body of the municipality. Each
1755	1755	11 appointment shall be made by the mayor, or president, subject
1756	1756	12 to the confirmation of the governing body. The directors so
1757	1757	13 appointed shall hold office for a term of 3 years, or until a
1758	1758	14 successor has been duly appointed and qualified, except that
1759	1759	15 the directors first appointed shall determine by lot at their
1760	1760	16 initial meeting the respective directors which shall serve for
1761	1761	17 a term of one, 2 or 3 years from the date of that meeting. A
1762	1762	18 vacancy shall be filled for the balance of the unexpired term
1763	1763	19 in the same manner as the original appointment.
1764	1764	20 The Board of Directors is the corporate authority of the
1765	1765	21 municipal power agency and shall exercise all the powers and
1766	1766	22 manage and control all of the affairs and property of the
1767	1767	23 agency. The Board of Directors shall have full power to pass
1768	1768	24 all necessary ordinances, resolutions, rules and regulations
1769	1769	25 for the proper management and conduct of the business of the
1770	1770	26 board, and for carrying into effect the objects for which the
1771	1771
1772	1772
1773	1773
1774	1774
1775	1775
1776	1776	SB3637 - 49 - LRB103 38841 CES 68978 b
1777	1777
1778	1778
1779	1779	SB3637- 50 -LRB103 38841 CES 68978 b SB3637 - 50 - LRB103 38841 CES 68978 b
1780	1780	SB3637 - 50 - LRB103 38841 CES 68978 b
1781	1781	1 agency was established.
1782	1782	2 At the initial meeting of the Board of Directors to be held
1783	1783	3 within 30 days after the date of establishment of the
1784	1784	4 municipal power agency, the directors shall elect from their
1785	1785	5 members a presiding officer to preside over the meetings of
1786	1786	6 the Board of Directors and an alternative presiding officer
1787	1787	7 and may elect an executive board. The Board of Directors shall
1788	1788	8 determine and designate in the agency's bylaws the titles for
1789	1789	9 the presiding officers. The directors shall also elect a
1790	1790	10 secretary and treasurer, who need not be directors. The board
1791	1791	11 may select such other officers, employees and agents as deemed
1792	1792	12 to be necessary, who need not be directors or residents of any
1793	1793	13 of the municipalities which are members of the municipal power
1794	1794	14 agency. The board may designate appropriate titles for all
1795	1795	15 other officers, employees, and agents. All persons selected by
1796	1796	16 the board shall hold their respective offices during the
1797	1797	17 pleasure of the board, and give such bond as may be required by
1798	1798	18 the board.
1799	1799	19 D. The bylaws of the municipal power agency, and any
1800	1800	20 amendments thereto, shall be adopted by the Board of Directors
1801	1801	21 by a majority vote (adjusted for weighted voting, if provided
1802	1802	22 in the Agency Agreement) to provide the following:
1803	1803	23 (1) the conditions and obligations of membership, if
1804	1804	24 any;
1805	1805	25 (2) the manner and time of calling regular and special
1806	1806	26 meetings of the Board of Directors;
1807	1807
1808	1808
1809	1809
1810	1810
1811	1811
1812	1812	SB3637 - 50 - LRB103 38841 CES 68978 b
1813	1813
1814	1814
1815	1815	SB3637- 51 -LRB103 38841 CES 68978 b SB3637 - 51 - LRB103 38841 CES 68978 b
1816	1816	SB3637 - 51 - LRB103 38841 CES 68978 b
1817	1817	1 (3) the procedural rules of the Board of Directors;
1818	1818	2 (4) the composition, powers and responsibilities of
1819	1819	3 any committee or executive board;
1820	1820	4 (5) the rights and obligations of new members,
1821	1821	5 conditions for the termination of membership, including a
1822	1822	6 formula for the determination of required termination
1823	1823	7 payments, if any, and the disposition of rights and
1824	1824	8 obligations upon termination of membership; and
1825	1825	9 (6) such other rules or provisions for regulating the
1826	1826	10 affairs of the municipal power agency as the board shall
1827	1827	11 determine to be necessary.
1828	1828	12 E. Every municipal power agency shall maintain an office
1829	1829	13 in the State of Illinois to be known as its principal office.
1830	1830	14 When a municipal power agency desires to change the location
1831	1831	15 of such office, it shall file with the Secretary of State a
1832	1832	16 certificate of change of location, stating the new address and
1833	1833	17 the effective date of change. Meetings of the Board of
1834	1834	18 Directors may be held at any place within the State of
1835	1835	19 Illinois, designated by the Board of Directors, after notice.
1836	1836	20 Unless otherwise provided by the bylaws, an act of the
1837	1837	21 majority of the directors present at a meeting at which a
1838	1838	22 quorum is present is the act of the Board of Directors.
1839	1839	23 F. The Board of Directors shall hold at least one meeting
1840	1840	24 each year for the election of officers and for the transaction
1841	1841	25 of any other business. Special meetings of the Board of
1842	1842	26 Directors may be called for any purpose upon written request
1843	1843
1844	1844
1845	1845
1846	1846
1847	1847
1848	1848	SB3637 - 51 - LRB103 38841 CES 68978 b
1849	1849
1850	1850
1851	1851	SB3637- 52 -LRB103 38841 CES 68978 b SB3637 - 52 - LRB103 38841 CES 68978 b
1852	1852	SB3637 - 52 - LRB103 38841 CES 68978 b
1853	1853	1 to the presiding officer of the Board of Directors or
1854	1854	2 secretary to call the meeting. Such officer shall give notice
1855	1855	3 of the meeting to be held not less than 10 days and not more
1856	1856	4 than 60 days after receipt of such request. Unless the bylaws
1857	1857	5 provide for a different percentage, a quorum for a meeting of
1858	1858	6 the Board of Directors is a majority of all members then in
1859	1859	7 office. All meetings of the board shall be held in compliance
1860	1860	8 with the provisions of "An Act in relation to meetings",
1861	1861	9 approved July 11, 1957, as amended.
1862	1862	10 G. The agency agreement may be amended as proposed at any
1863	1863	11 meeting of the Board of Directors for which notice, stating
1864	1864	12 the purpose, shall be given to each director and, unless the
1865	1865	13 bylaws prescribe otherwise, such amendment shall become
1866	1866	14 effective when ratified by ordinances adopted by a majority of
1867	1867	15 the governing bodies of the member municipalities. Each
1868	1868	16 amendment, duly certified, shall be recorded and filed in the
1869	1869	17 same manner as for the original agreement.
1870	1870	18 H. Each member municipality shall have full power and
1871	1871	19 authority, subject to the provisions of its charter and laws
1872	1872	20 regarding local finance, to appropriate money for the payment
1873	1873	21 of the expenses of the municipal power agency and of its
1874	1874	22 representative in exercising its functions as a member of the
1875	1875	23 municipal power agency.
1876	1876	24 I. Any additional municipality which operates an electric
1877	1877	25 utility system may join the municipal power agency, or any
1878	1878	26 member municipality may withdraw therefrom consistent with the
1879	1879
1880	1880
1881	1881
1882	1882
1883	1883
1884	1884	SB3637 - 52 - LRB103 38841 CES 68978 b
1885	1885
1886	1886
1887	1887	SB3637- 53 -LRB103 38841 CES 68978 b SB3637 - 53 - LRB103 38841 CES 68978 b
1888	1888	SB3637 - 53 - LRB103 38841 CES 68978 b
1889	1889	1 bylaws of the municipal power agency, and upon payment of any
1890	1890	2 termination obligations as described in subsection D upon the
1891	1891	3 approval by ordinance adopted by the governing body of the
1892	1892	4 majority of the municipalities which are then members of the
1893	1893	5 municipal power agency. Any new member shall agree to assume
1894	1894	6 its proportionate share of the outstanding obligations of the
1895	1895	7 municipal power agency and any member permitted to withdraw
1896	1896	8 shall remain obligated to make payments under any outstanding
1897	1897	9 contract or agreement with the municipal power agency or to
1898	1898	10 comply with any exit or early termination provisions set forth
1899	1899	11 in that contract or agreement. Any such change in membership
1900	1900	12 shall be recorded and filed in the same manner as for the
1901	1901	13 original agreement.
1902	1902	14 J. Any 2 or more municipal power agencies organized
1903	1903	15 pursuant to this Division may consolidate to form a new
1904	1904	16 municipal power agency when approved by ordinance adopted by
1905	1905	17 the governing body of each municipality which is a member of
1906	1906	18 the respective municipal power agency and by the execution of
1907	1907	19 an agency agreement as provided in this Section.
1908	1908	20 (Source: P.A. 96-204, eff. 1-1-10.)
1909	1909	21 (65 ILCS 5/11-119.1-5.5 new)
1910	1910	22 Sec. 11-119.1-5.5. Agency records, budgets, and quarterly
1911	1911	23 reports.
1912	1912	24 (a) A municipal power agency shall keep accurate accounts
1913	1913	25 and records of its assets, liabilities, revenues, and
1914	1914
1915	1915
1916	1916
1917	1917
1918	1918
1919	1919	SB3637 - 53 - LRB103 38841 CES 68978 b
1920	1920
1921	1921
1922	1922	SB3637- 54 -LRB103 38841 CES 68978 b SB3637 - 54 - LRB103 38841 CES 68978 b
1923	1923	SB3637 - 54 - LRB103 38841 CES 68978 b
1924	1924	1 expenditures in accordance with generally accepted accounting
1925	1925	2 principles. Such accounts and records shall include, but are
1926	1926	3 not limited to, depreciation, operating and maintenance
1927	1927	4 expenses for all generation and transmission assets, fuel
1928	1928	5 costs, cost and revenue from the purchase or sale of
1929	1929	6 environmental compliance credits, revenue from energy,
1930	1930	7 capacity, and ancillary market sales, all payments received
1931	1931	8 from member municipalities, membership dues or other payments
1932	1932	9 made to trade associations or industry organizations, and
1933	1933	10 lobbying expenditures. Such records shall be audited on an
1934	1934	11 annual basis by an independent auditor using generally
1935	1935	12 accepted auditing standards and shall include contents as set
1936	1936	13 forth in Section 8-8-5, and shall be filed with the
1937	1937	14 Comptroller as described by Section 8-8-7.
1938	1938	15 (b) A municipal power agency shall, on an annual basis,
1939	1939	16 prepare one-year and 5-year budgets that include all revenues
1940	1940	17 and expenses, including, but not limited to, those categories
1941	1941	18 described in subsection (a). As part of each one-year budget,
1942	1942	19 the municipal power agency shall include a report identifying
1943	1943	20 and explaining any variance from the previous annual budget of
1944	1944	21 5% or greater in any expenditure or revenue line item. Such
1945	1945	22 budgets shall be provided to member municipalities no less
1946	1946	23 than 60 days prior to any meeting of the municipal power agency
1947	1947	24 during which action on the budget is or will be part of the
1948	1948	25 agency agenda.
1949	1949	26 (c) The municipal power agency shall post, on a publicly
1950	1950
1951	1951
1952	1952
1953	1953
1954	1954
1955	1955	SB3637 - 54 - LRB103 38841 CES 68978 b
1956	1956
1957	1957
1958	1958	SB3637- 55 -LRB103 38841 CES 68978 b SB3637 - 55 - LRB103 38841 CES 68978 b
1959	1959	SB3637 - 55 - LRB103 38841 CES 68978 b
1960	1960	1 available website, all one-year and 5-year budgets required
1961	1961	2 under subsection (b) and the annual audited financial
1962	1962	3 statements required under subsection (a).
1963	1963	4 (d) The municipal power agency shall make available, upon
1964	1964	5 request to any of its member municipalities, access to all
1965	1965	6 municipal power agency all records and accounts and all
1966	1966	7 financial information relating to ownership and operation of
1967	1967	8 agency assets and the generation, procurement, and delivery of
1968	1968	9 electricity to which the agency has access, including, but not
1969	1969	10 limited to, unit scheduling information, market revenue and
1970	1970	11 off-system sales data, and fuel and other variable cost
1971	1971	12 information. Such information shall be provided in a timely
1972	1972	13 manner and through reasonable means, and members shall be
1973	1973	14 permitted to make copies of any documents retained solely by
1974	1974	15 the agency. Such access shall be provided without regard to
1975	1975	16 any nondisclosure agreement that has been or may be adopted by
1976	1976	17 the municipal power agency.
1977	1977	18 (e) The municipal power agency shall prepare, on a
1978	1978	19 quarterly basis, a report to its member municipalities
1979	1979	20 describing all expenditures made for the purpose of lobbying,
1980	1980	21 as both terms are defined by Section 2 of the Lobbyist
1981	1981	22 Registration Act, and a brief summary of the topics and
1982	1982	23 positions on which lobbying activities were undertaken. Where
1983	1983	24 the municipal power agency is a member of an organization or
1984	1984	25 trade association that expends some or all of membership dues
1985	1985	26 on lobbying activities, the municipal power agency shall
1986	1986
1987	1987
1988	1988
1989	1989
1990	1990
1991	1991	SB3637 - 55 - LRB103 38841 CES 68978 b
1992	1992
1993	1993
1994	1994	SB3637- 56 -LRB103 38841 CES 68978 b SB3637 - 56 - LRB103 38841 CES 68978 b
1995	1995	SB3637 - 56 - LRB103 38841 CES 68978 b
1996	1996	1 include in this report the amount of those membership dues,
1997	1997	2 what proportion of those dues were spent on lobbying
1998	1998	3 activities, and the topics and positions on which lobbying
1999	1999	4 activities were undertaken by the organization or trade
2000	2000	5 association of which the municipal power agency is a member.
2001	2001	6 (65 ILCS 5/11-119.1-10) (from Ch. 24, par. 11-119.1-10)
2002	2002	7 Sec. 11-119.1-10. Exercise of powers. A municipal power
2003	2003	8 agency may exercise any and all of the powers enumerated in
2004	2004	9 this Division, except the power of eminent domain, without the
2005	2005	10 consent and approval of the Illinois Commerce Commission. The
2006	2006	11 exercise of the power of eminent domain by a municipal power
2007	2007	12 agency shall be subject to the consent and approval of the
2008	2008	13 Illinois Commerce Commission in the same manner and to the
2009	2009	14 same extent as public utilities under the Public Utilities
2010	2010	15 Act, including the issuance of a certificate of public
2011	2011	16 convenience and necessity as provided for in Section 8-406 of
2012	2012	17 that Act. During the consideration of any petition for
2013	2013	18 authority to exercise the power of eminent domain the Illinois
2014	2014	19 Commerce Commission shall evaluate and give due consideration
2015	2015	20 to whether the project for which eminent domain is sought is
2016	2016	21 part of the preferred portfolio as described in subsection (d)
2017	2017	22 of Section 15 of the Municipal and Cooperative Electric
2018	2018	23 Utility Planning and Transparency Act, or least cost plans for
2019	2019	24 procuring renewable resources as described in subsections (f)
2020	2020	25 and (g) of Section 20 of the Municipal and Cooperative
2021	2021
2022	2022
2023	2023
2024	2024
2025	2025
2026	2026	SB3637 - 56 - LRB103 38841 CES 68978 b
2027	2027
2028	2028
2029	2029	SB3637- 57 -LRB103 38841 CES 68978 b SB3637 - 57 - LRB103 38841 CES 68978 b
2030	2030	SB3637 - 57 - LRB103 38841 CES 68978 b
2031	2031	1 Electric Utility Planning and Transparency Act and to the
2032	2032	2 impact of the acquisition on farmlands in the State with the
2033	2033	3 goal of preserving the land to the fullest extent reasonably
2034	2034	4 possible.
2035	2035	5 (Source: P.A. 90-416, eff. 1-1-98.)
2036	2036	6 Section 105. The Public Utilities Act is amended by
2037	2037	7 changing Sections 3-105, 8-103B, 16-107.5, 16-111.5, 16-115A,
2038	2038	8 16-115D, and 17-500 and by adding Section 16-107.8 as follows:
2039	2039	9 (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
2040	2040	10 Sec. 3-105. Public utility.
2041	2041	11 (a) "Public utility" means and includes, except where
2042	2042	12 otherwise expressly provided in this Section, every
2043	2043	13 corporation, company, limited liability company, association,
2044	2044	14 joint stock company or association, firm, partnership or
2045	2045	15 individual, their lessees, trustees, or receivers appointed by
2046	2046	16 any court whatsoever now or hereafter that owns, controls,
2047	2047	17 operates or manages, within this State, directly or
2048	2048	18 indirectly, for public use, any plant, equipment or property
2049	2049	19 used or to be used for or in connection with, or owns or
2050	2050	20 controls or seeks Commission approval to own or control any
2051	2051	21 franchise, license, permit or right to engage in:
2052	2052	22 (1) the production, storage, transmission, sale,
2053	2053	23 delivery or furnishing of heat, cold, power, electricity,
2054	2054	24 water, or light, except when used solely for
2055	2055
2056	2056
2057	2057
2058	2058
2059	2059
2060	2060	SB3637 - 57 - LRB103 38841 CES 68978 b
2061	2061
2062	2062
2063	2063	SB3637- 58 -LRB103 38841 CES 68978 b SB3637 - 58 - LRB103 38841 CES 68978 b
2064	2064	SB3637 - 58 - LRB103 38841 CES 68978 b
2065	2065	1 communications purposes;
2066	2066	2 (2) the disposal of sewerage; or
2067	2067	3 (3) the conveyance of oil or gas by pipe line.
2068	2068	4 (b) "Public utility" does not include, however:
2069	2069	5 (1) public utilities that are owned and operated by
2070	2070	6 any political subdivision, public institution of higher
2071	2071	7 education or municipal corporation of this State, or
2072	2072	8 public utilities that are owned by such political
2073	2073	9 subdivision, public institution of higher education, or
2074	2074	10 municipal corporation and operated by any of its lessees
2075	2075	11 or operating agents;
2076	2076	12 (2) water companies which are purely mutual concerns,
2077	2077	13 having no rates or charges for services, but paying the
2078	2078	14 operating expenses by assessment upon the members of such
2079	2079	15 a company and no other person;
2080	2080	16 (3) electric cooperatives as defined in Section 3-119;
2081	2081	17 (4) the following natural gas cooperatives:
2082	2082	18 (A) residential natural gas cooperatives that are
2083	2083	19 not-for-profit corporations established for the
2084	2084	20 purpose of administering and operating, on a
2085	2085	21 cooperative basis, the furnishing of natural gas to
2086	2086	22 residences for the benefit of their members who are
2087	2087	23 residential consumers of natural gas. For entities
2088	2088	24 qualifying as residential natural gas cooperatives and
2089	2089	25 recognized by the Illinois Commerce Commission as
2090	2090	26 such, the State shall guarantee legally binding
2091	2091
2092	2092
2093	2093
2094	2094
2095	2095
2096	2096	SB3637 - 58 - LRB103 38841 CES 68978 b
2097	2097
2098	2098
2099	2099	SB3637- 59 -LRB103 38841 CES 68978 b SB3637 - 59 - LRB103 38841 CES 68978 b
2100	2100	SB3637 - 59 - LRB103 38841 CES 68978 b
2101	2101	1 contracts entered into by residential natural gas
2102	2102	2 cooperatives for the express purpose of acquiring
2103	2103	3 natural gas supplies for their members. The Illinois
2104	2104	4 Commerce Commission shall establish rules and
2105	2105	5 regulations providing for such guarantees. The total
2106	2106	6 liability of the State in providing all such
2107	2107	7 guarantees shall not at any time exceed $1,000,000,
2108	2108	8 nor shall the State provide such a guarantee to a
2109	2109	9 residential natural gas cooperative for more than 3
2110	2110	10 consecutive years; and
2111	2111	11 (B) natural gas cooperatives that are
2112	2112	12 not-for-profit corporations operated for the purpose
2113	2113	13 of administering, on a cooperative basis, the
2114	2114	14 furnishing of natural gas for the benefit of their
2115	2115	15 members and that, prior to 90 days after the effective
2116	2116	16 date of this amendatory Act of the 94th General
2117	2117	17 Assembly, either had acquired or had entered into an
2118	2118	18 asset purchase agreement to acquire all or
2119	2119	19 substantially all of the operating assets of a public
2120	2120	20 utility or natural gas cooperative with the intention
2121	2121	21 of operating those assets as a natural gas
2122	2122	22 cooperative;
2123	2123	23 (5) sewage disposal companies which provide sewage
2124	2124	24 disposal services on a mutual basis without establishing
2125	2125	25 rates or charges for services, but paying the operating
2126	2126	26 expenses by assessment upon the members of the company and
2127	2127
2128	2128
2129	2129
2130	2130
2131	2131
2132	2132	SB3637 - 59 - LRB103 38841 CES 68978 b
2133	2133
2134	2134
2135	2135	SB3637- 60 -LRB103 38841 CES 68978 b SB3637 - 60 - LRB103 38841 CES 68978 b
2136	2136	SB3637 - 60 - LRB103 38841 CES 68978 b
2137	2137	1 no others;
2138	2138	2 (6) (blank);
2139	2139	3 (7) cogeneration facilities, small power production
2140	2140	4 facilities, and other qualifying facilities, as defined in
2141	2141	5 the Public Utility Regulatory Policies Act and regulations
2142	2142	6 promulgated thereunder, except to the extent State
2143	2143	7 regulatory jurisdiction and action is required or
2144	2144	8 authorized by federal law, regulations, regulatory
2145	2145	9 decisions or the decisions of federal or State courts of
2146	2146	10 competent jurisdiction;
2147	2147	11 (8) the ownership or operation of a facility that
2148	2148	12 sells compressed natural gas at retail to the public for
2149	2149	13 use only as a motor vehicle fuel and the selling of
2150	2150	14 compressed natural gas at retail to the public for use
2151	2151	15 only as a motor vehicle fuel;
2152	2152	16 (9) alternative retail electric suppliers as defined
2153	2153	17 in Article XVI; and
2154	2154	18 (10) the Illinois Power Agency.
2155	2155	19 (c) An entity that furnishes the service of charging
2156	2156	20 electric vehicles does not and shall not be deemed to sell
2157	2157	21 electricity and is not and shall not be deemed a public utility
2158	2158	22 notwithstanding the basis on which the service is provided or
2159	2159	23 billed. If, however, the entity is otherwise deemed a public
2160	2160	24 utility under this Act, or is otherwise subject to regulation
2161	2161	25 under this Act, then that entity is not exempt from and remains
2162	2162	26 subject to the otherwise applicable provisions of this Act.
2163	2163
2164	2164
2165	2165
2166	2166
2167	2167
2168	2168	SB3637 - 60 - LRB103 38841 CES 68978 b
2169	2169
2170	2170
2171	2171	SB3637- 61 -LRB103 38841 CES 68978 b SB3637 - 61 - LRB103 38841 CES 68978 b
2172	2172	SB3637 - 61 - LRB103 38841 CES 68978 b
2173	2173	1 The installation, maintenance, and repair of an electric
2174	2174	2 vehicle charging station shall comply with the requirements of
2175	2175	3 subsection (a) of Section 16-128 and Section 16-128A of this
2176	2176	4 Act.
2177	2177	5 For purposes of this subsection, the term "electric
2178	2178	6 vehicles" has the meaning ascribed to that term in Section 10
2179	2179	7 of the Electric Vehicle Act.
2180	2180	8 (Source: P.A. 97-1128, eff. 8-28-12.)
2181	2181	9 (220 ILCS 5/8-103B)
2182	2182	10 Sec. 8-103B. Energy efficiency and demand-response
2183	2183	11 measures.
2184	2184	12 (a) It is the policy of the State that electric utilities
2185	2185	13 are required to use cost-effective energy efficiency and
2186	2186	14 demand-response measures to reduce delivery load. Requiring
2187	2187	15 investment in cost-effective energy efficiency and
2188	2188	16 demand-response measures will reduce direct and indirect costs
2189	2189	17 to consumers by decreasing environmental impacts and by
2190	2190	18 avoiding or delaying the need for new generation,
2191	2191	19 transmission, and distribution infrastructure. It serves the
2192	2192	20 public interest to allow electric utilities to recover costs
2193	2193	21 for reasonably and prudently incurred expenditures for energy
2194	2194	22 efficiency and demand-response measures. As used in this
2195	2195	23 Section, "cost-effective" means that the measures satisfy the
2196	2196	24 total resource cost test. The low-income measures described in
2197	2197	25 subsection (c) of this Section shall not be required to meet
2198	2198
2199	2199
2200	2200
2201	2201
2202	2202
2203	2203	SB3637 - 61 - LRB103 38841 CES 68978 b
2204	2204
2205	2205
2206	2206	SB3637- 62 -LRB103 38841 CES 68978 b SB3637 - 62 - LRB103 38841 CES 68978 b
2207	2207	SB3637 - 62 - LRB103 38841 CES 68978 b
2208	2208	1 the total resource cost test. For purposes of this Section,
2209	2209	2 the terms "energy-efficiency", "demand-response", "electric
2210	2210	3 utility", and "total resource cost test" have the meanings set
2211	2211	4 forth in the Illinois Power Agency Act. "Black, indigenous,
2212	2212	5 and people of color" and "BIPOC" means people who are members
2213	2213	6 of the groups described in subparagraphs (a) through (e) of
2214	2214	7 paragraph (A) of subsection (1) of Section 2 of the Business
2215	2215	8 Enterprise for Minorities, Women, and Persons with
2216	2216	9 Disabilities Act.
2217	2217	10 (a-5) This Section applies to electric utilities serving
2218	2218	11 more than 500,000 retail customers in the State for those
2219	2219	12 multi-year plans commencing after December 31, 2017.
2220	2220	13 (b) For purposes of this Section, through calendar year
2221	2221	14 2025, electric utilities subject to this Section that serve
2222	2222	15 more than 3,000,000 retail customers in the State shall be
2223	2223	16 deemed to have achieved a cumulative persisting annual savings
2224	2224	17 of 6.6% from energy efficiency measures and programs
2225	2225	18 implemented during the period beginning January 1, 2012 and
2226	2226	19 ending December 31, 2017, which percent is based on the deemed
2227	2227	20 average weather normalized sales of electric power and energy
2228	2228	21 during calendar years 2014, 2015, and 2016 of 88,000,000 MWhs.
2229	2229	22 For the purposes of this subsection (b) and subsection (b-5),
2230	2230	23 the 88,000,000 MWhs of deemed electric power and energy sales
2231	2231	24 shall be reduced by the number of MWhs equal to the sum of the
2232	2232	25 annual consumption of customers that have opted out of
2233	2233	26 subsections (a) through (j) of this Section under paragraph
2234	2234
2235	2235
2236	2236
2237	2237
2238	2238
2239	2239	SB3637 - 62 - LRB103 38841 CES 68978 b
2240	2240
2241	2241
2242	2242	SB3637- 63 -LRB103 38841 CES 68978 b SB3637 - 63 - LRB103 38841 CES 68978 b
2243	2243	SB3637 - 63 - LRB103 38841 CES 68978 b
2244	2244	1 (1) of subsection (l) of this Section, as averaged across the
2245	2245	2 calendar years 2014, 2015, and 2016. After 2017, the deemed
2246	2246	3 value of cumulative persisting annual savings from energy
2247	2247	4 efficiency measures and programs implemented during the period
2248	2248	5 beginning January 1, 2012 and ending December 31, 2017, shall
2249	2249	6 be reduced each year, as follows, and the applicable value
2250	2250	7 shall be applied to and count toward the utility's achievement
2251	2251	8 of the cumulative persisting annual savings goals set forth in
2252	2252	9 subsection (b-5):
2253	2253	10 (1) 5.8% deemed cumulative persisting annual savings
2254	2254	11 for the year ending December 31, 2018;
2255	2255	12 (2) 5.2% deemed cumulative persisting annual savings
2256	2256	13 for the year ending December 31, 2019;
2257	2257	14 (3) 4.5% deemed cumulative persisting annual savings
2258	2258	15 for the year ending December 31, 2020;
2259	2259	16 (4) 4.0% deemed cumulative persisting annual savings
2260	2260	17 for the year ending December 31, 2021;
2261	2261	18 (5) 3.5% deemed cumulative persisting annual savings
2262	2262	19 for the year ending December 31, 2022;
2263	2263	20 (6) 3.1% deemed cumulative persisting annual savings
2264	2264	21 for the year ending December 31, 2023;
2265	2265	22 (7) 2.8% deemed cumulative persisting annual savings
2266	2266	23 for the year ending December 31, 2024; and
2267	2267	24 (8) 2.5% deemed cumulative persisting annual savings
2268	2268	25 for the year ending December 31, 2025. ;
2269	2269	26 (9) 2.3% deemed cumulative persisting annual savings
2270	2270
2271	2271
2272	2272
2273	2273
2274	2274
2275	2275	SB3637 - 63 - LRB103 38841 CES 68978 b
2276	2276
2277	2277
2278	2278	SB3637- 64 -LRB103 38841 CES 68978 b SB3637 - 64 - LRB103 38841 CES 68978 b
2279	2279	SB3637 - 64 - LRB103 38841 CES 68978 b
2280	2280	1 for the year ending December 31, 2026;
2281	2281	2 (10) 2.1% deemed cumulative persisting annual savings
2282	2282	3 for the year ending December 31, 2027;
2283	2283	4 (11) 1.8% deemed cumulative persisting annual savings
2284	2284	5 for the year ending December 31, 2028;
2285	2285	6 (12) 1.7% deemed cumulative persisting annual savings
2286	2286	7 for the year ending December 31, 2029;
2287	2287	8 (13) 1.5% deemed cumulative persisting annual savings
2288	2288	9 for the year ending December 31, 2030;
2289	2289	10 (14) 1.3% deemed cumulative persisting annual savings
2290	2290	11 for the year ending December 31, 2031;
2291	2291	12 (15) 1.1% deemed cumulative persisting annual savings
2292	2292	13 for the year ending December 31, 2032;
2293	2293	14 (16) 0.9% deemed cumulative persisting annual savings
2294	2294	15 for the year ending December 31, 2033;
2295	2295	16 (17) 0.7% deemed cumulative persisting annual savings
2296	2296	17 for the year ending December 31, 2034;
2297	2297	18 (18) 0.5% deemed cumulative persisting annual savings
2298	2298	19 for the year ending December 31, 2035;
2299	2299	20 (19) 0.4% deemed cumulative persisting annual savings
2300	2300	21 for the year ending December 31, 2036;
2301	2301	22 (20) 0.3% deemed cumulative persisting annual savings
2302	2302	23 for the year ending December 31, 2037;
2303	2303	24 (21) 0.2% deemed cumulative persisting annual savings
2304	2304	25 for the year ending December 31, 2038;
2305	2305	26 (22) 0.1% deemed cumulative persisting annual savings
2306	2306
2307	2307
2308	2308
2309	2309
2310	2310
2311	2311	SB3637 - 64 - LRB103 38841 CES 68978 b
2312	2312
2313	2313
2314	2314	SB3637- 65 -LRB103 38841 CES 68978 b SB3637 - 65 - LRB103 38841 CES 68978 b
2315	2315	SB3637 - 65 - LRB103 38841 CES 68978 b
2316	2316	1 for the year ending December 31, 2039; and
2317	2317	2 (23) 0.0% deemed cumulative persisting annual savings
2318	2318	3 for the year ending December 31, 2040 and all subsequent
2319	2319	4 years.
2320	2320	5 For purposes of this Section, "cumulative persisting
2321	2321	6 annual savings" means the total electric energy savings in a
2322	2322	7 given year from measures installed in that year or in previous
2323	2323	8 years, but no earlier than January 1, 2012, that are still
2324	2324	9 operational and providing savings in that year because the
2325	2325	10 measures have not yet reached the end of their useful lives.
2326	2326	11 (b-5) Beginning in 2018, through calendar year 2025,
2327	2327	12 electric utilities subject to this Section that serve more
2328	2328	13 than 3,000,000 retail customers in the State shall achieve the
2329	2329	14 following cumulative persisting annual savings goals, as
2330	2330	15 modified by subsection (f) of this Section and as compared to
2331	2331	16 the deemed baseline of 88,000,000 MWhs of electric power and
2332	2332	17 energy sales set forth in subsection (b), as reduced by the
2333	2333	18 number of MWhs equal to the sum of the annual consumption of
2334	2334	19 customers that have opted out of subsections (a) through (j)
2335	2335	20 of this Section under paragraph (1) of subsection (l) of this
2336	2336	21 Section as averaged across the calendar years 2014, 2015, and
2337	2337	22 2016, through the implementation of energy efficiency measures
2338	2338	23 during the applicable year and in prior years, but no earlier
2339	2339	24 than January 1, 2012:
2340	2340	25 (1) 7.8% cumulative persisting annual savings for the
2341	2341	26 year ending December 31, 2018;
2342	2342
2343	2343
2344	2344
2345	2345
2346	2346
2347	2347	SB3637 - 65 - LRB103 38841 CES 68978 b
2348	2348
2349	2349
2350	2350	SB3637- 66 -LRB103 38841 CES 68978 b SB3637 - 66 - LRB103 38841 CES 68978 b
2351	2351	SB3637 - 66 - LRB103 38841 CES 68978 b
2352	2352	1 (2) 9.1% cumulative persisting annual savings for the
2353	2353	2 year ending December 31, 2019;
2354	2354	3 (3) 10.4% cumulative persisting annual savings for the
2355	2355	4 year ending December 31, 2020;
2356	2356	5 (4) 11.8% cumulative persisting annual savings for the
2357	2357	6 year ending December 31, 2021;
2358	2358	7 (5) 13.1% cumulative persisting annual savings for the
2359	2359	8 year ending December 31, 2022;
2360	2360	9 (6) 14.4% cumulative persisting annual savings for the
2361	2361	10 year ending December 31, 2023;
2362	2362	11 (7) 15.7% cumulative persisting annual savings for the
2363	2363	12 year ending December 31, 2024; and
2364	2364	13 (8) 17% cumulative persisting annual savings for the
2365	2365	14 year ending December 31, 2025. ;
2366	2366	15 (9) 17.9% cumulative persisting annual savings for the
2367	2367	16 year ending December 31, 2026;
2368	2368	17 (10) 18.8% cumulative persisting annual savings for
2369	2369	18 the year ending December 31, 2027;
2370	2370	19 (11) 19.7% cumulative persisting annual savings for
2371	2371	20 the year ending December 31, 2028;
2372	2372	21 (12) 20.6% cumulative persisting annual savings for
2373	2373	22 the year ending December 31, 2029; and
2374	2374	23 (13) 21.5% cumulative persisting annual savings for
2375	2375	24 the year ending December 31, 2030.
2376	2376	25 No later than December 31, 2021, the Illinois Commerce
2377	2377	26 Commission shall establish additional cumulative persisting
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382
2383	2383	SB3637 - 66 - LRB103 38841 CES 68978 b
2384	2384
2385	2385
2386	2386	SB3637- 67 -LRB103 38841 CES 68978 b SB3637 - 67 - LRB103 38841 CES 68978 b
2387	2387	SB3637 - 67 - LRB103 38841 CES 68978 b
2388	2388	1 annual savings goals for the years 2031 through 2035. No later
2389	2389	2 than December 31, 2024, the Illinois Commerce Commission shall
2390	2390	3 establish additional cumulative persisting annual savings
2391	2391	4 goals for the years 2036 through 2040. The Commission shall
2392	2392	5 also establish additional cumulative persisting annual savings
2393	2393	6 goals every 5 years thereafter to ensure that utilities always
2394	2394	7 have goals that extend at least 11 years into the future. The
2395	2395	8 cumulative persisting annual savings goals beyond the year
2396	2396	9 2030 shall increase by 0.9 percentage points per year, absent
2397	2397	10 a Commission decision to initiate a proceeding to consider
2398	2398	11 establishing goals that increase by more or less than that
2399	2399	12 amount. Such a proceeding must be conducted in accordance with
2400	2400	13 the procedures described in subsection (f) of this Section. If
2401	2401	14 such a proceeding is initiated, the cumulative persisting
2402	2402	15 annual savings goals established by the Commission through
2403	2403	16 that proceeding shall reflect the Commission's best estimate
2404	2404	17 of the maximum amount of additional savings that are forecast
2405	2405	18 to be cost-effectively achievable unless such best estimates
2406	2406	19 would result in goals that represent less than 0.5 percentage
2407	2407	20 point annual increases in total cumulative persisting annual
2408	2408	21 savings. The Commission may only establish goals that
2409	2409	22 represent less than 0.5 percentage point annual increases in
2410	2410	23 cumulative persisting annual savings if it can demonstrate,
2411	2411	24 based on clear and convincing evidence and through independent
2412	2412	25 analysis, that 0.5 percentage point increases are not
2413	2413	26 cost-effectively achievable. The Commission shall inform its
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418
2419	2419	SB3637 - 67 - LRB103 38841 CES 68978 b
2420	2420
2421	2421
2422	2422	SB3637- 68 -LRB103 38841 CES 68978 b SB3637 - 68 - LRB103 38841 CES 68978 b
2423	2423	SB3637 - 68 - LRB103 38841 CES 68978 b
2424	2424	1 decision based on an energy efficiency potential study that
2425	2425	2 conforms to the requirements of this Section.
2426	2426	3 (b-10) For purposes of this Section, through calendar year
2427	2427	4 2025, electric utilities subject to this Section that serve
2428	2428	5 less than 3,000,000 retail customers but more than 500,000
2429	2429	6 retail customers in the State shall be deemed to have achieved
2430	2430	7 a cumulative persisting annual savings of 6.6% from energy
2431	2431	8 efficiency measures and programs implemented during the period
2432	2432	9 beginning January 1, 2012 and ending December 31, 2017, which
2433	2433	10 is based on the deemed average weather normalized sales of
2434	2434	11 electric power and energy during calendar years 2014, 2015,
2435	2435	12 and 2016 of 36,900,000 MWhs. For the purposes of this
2436	2436	13 subsection (b-10) and subsection (b-15), the 36,900,000 MWhs
2437	2437	14 of deemed electric power and energy sales shall be reduced by
2438	2438	15 the number of MWhs equal to the sum of the annual consumption
2439	2439	16 of customers that have opted out of subsections (a) through
2440	2440	17 (j) of this Section under paragraph (1) of subsection (l) of
2441	2441	18 this Section, as averaged across the calendar years 2014,
2442	2442	19 2015, and 2016. After 2017, the deemed value of cumulative
2443	2443	20 persisting annual savings from energy efficiency measures and
2444	2444	21 programs implemented during the period beginning January 1,
2445	2445	22 2012 and ending December 31, 2017, shall be reduced each year,
2446	2446	23 as follows, and the applicable value shall be applied to and
2447	2447	24 count toward the utility's achievement of the cumulative
2448	2448	25 persisting annual savings goals set forth in subsection
2449	2449	26 (b-15):
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454
2455	2455	SB3637 - 68 - LRB103 38841 CES 68978 b
2456	2456
2457	2457
2458	2458	SB3637- 69 -LRB103 38841 CES 68978 b SB3637 - 69 - LRB103 38841 CES 68978 b
2459	2459	SB3637 - 69 - LRB103 38841 CES 68978 b
2460	2460	1 (1) 5.8% deemed cumulative persisting annual savings
2461	2461	2 for the year ending December 31, 2018;
2462	2462	3 (2) 5.2% deemed cumulative persisting annual savings
2463	2463	4 for the year ending December 31, 2019;
2464	2464	5 (3) 4.5% deemed cumulative persisting annual savings
2465	2465	6 for the year ending December 31, 2020;
2466	2466	7 (4) 4.0% deemed cumulative persisting annual savings
2467	2467	8 for the year ending December 31, 2021;
2468	2468	9 (5) 3.5% deemed cumulative persisting annual savings
2469	2469	10 for the year ending December 31, 2022;
2470	2470	11 (6) 3.1% deemed cumulative persisting annual savings
2471	2471	12 for the year ending December 31, 2023;
2472	2472	13 (7) 2.8% deemed cumulative persisting annual savings
2473	2473	14 for the year ending December 31, 2024; and
2474	2474	15 (8) 2.5% deemed cumulative persisting annual savings
2475	2475	16 for the year ending December 31, 2025. ;
2476	2476	17 (9) 2.3% deemed cumulative persisting annual savings
2477	2477	18 for the year ending December 31, 2026;
2478	2478	19 (10) 2.1% deemed cumulative persisting annual savings
2479	2479	20 for the year ending December 31, 2027;
2480	2480	21 (11) 1.8% deemed cumulative persisting annual savings
2481	2481	22 for the year ending December 31, 2028;
2482	2482	23 (12) 1.7% deemed cumulative persisting annual savings
2483	2483	24 for the year ending December 31, 2029;
2484	2484	25 (13) 1.5% deemed cumulative persisting annual savings
2485	2485	26 for the year ending December 31, 2030;
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490
2491	2491	SB3637 - 69 - LRB103 38841 CES 68978 b
2492	2492
2493	2493
2494	2494	SB3637- 70 -LRB103 38841 CES 68978 b SB3637 - 70 - LRB103 38841 CES 68978 b
2495	2495	SB3637 - 70 - LRB103 38841 CES 68978 b
2496	2496	1 (14) 1.3% deemed cumulative persisting annual savings
2497	2497	2 for the year ending December 31, 2031;
2498	2498	3 (15) 1.1% deemed cumulative persisting annual savings
2499	2499	4 for the year ending December 31, 2032;
2500	2500	5 (16) 0.9% deemed cumulative persisting annual savings
2501	2501	6 for the year ending December 31, 2033;
2502	2502	7 (17) 0.7% deemed cumulative persisting annual savings
2503	2503	8 for the year ending December 31, 2034;
2504	2504	9 (18) 0.5% deemed cumulative persisting annual savings
2505	2505	10 for the year ending December 31, 2035;
2506	2506	11 (19) 0.4% deemed cumulative persisting annual savings
2507	2507	12 for the year ending December 31, 2036;
2508	2508	13 (20) 0.3% deemed cumulative persisting annual savings
2509	2509	14 for the year ending December 31, 2037;
2510	2510	15 (21) 0.2% deemed cumulative persisting annual savings
2511	2511	16 for the year ending December 31, 2038;
2512	2512	17 (22) 0.1% deemed cumulative persisting annual savings
2513	2513	18 for the year ending December 31, 2039; and
2514	2514	19 (23) 0.0% deemed cumulative persisting annual savings
2515	2515	20 for the year ending December 31, 2040 and all subsequent
2516	2516	21 years.
2517	2517	22 (b-15) Beginning in 2018, electric utilities subject to
2518	2518	23 this Section that serve less than 3,000,000 retail customers
2519	2519	24 but more than 500,000 retail customers in the State shall
2520	2520	25 achieve the following cumulative persisting annual savings
2521	2521	26 goals, as modified by subsection (b-20) and subsection (f) of
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526
2527	2527	SB3637 - 70 - LRB103 38841 CES 68978 b
2528	2528
2529	2529
2530	2530	SB3637- 71 -LRB103 38841 CES 68978 b SB3637 - 71 - LRB103 38841 CES 68978 b
2531	2531	SB3637 - 71 - LRB103 38841 CES 68978 b
2532	2532	1 this Section and as compared to the deemed baseline as reduced
2533	2533	2 by the number of MWhs equal to the sum of the annual
2534	2534	3 consumption of customers that have opted out of subsections
2535	2535	4 (a) through (j) of this Section under paragraph (1) of
2536	2536	5 subsection (l) of this Section as averaged across the calendar
2537	2537	6 years 2014, 2015, and 2016, through the implementation of
2538	2538	7 energy efficiency measures during the applicable year and in
2539	2539	8 prior years, but no earlier than January 1, 2012:
2540	2540	9 (1) 7.4% cumulative persisting annual savings for the
2541	2541	10 year ending December 31, 2018;
2542	2542	11 (2) 8.2% cumulative persisting annual savings for the
2543	2543	12 year ending December 31, 2019;
2544	2544	13 (3) 9.0% cumulative persisting annual savings for the
2545	2545	14 year ending December 31, 2020;
2546	2546	15 (4) 9.8% cumulative persisting annual savings for the
2547	2547	16 year ending December 31, 2021;
2548	2548	17 (5) 10.6% cumulative persisting annual savings for the
2549	2549	18 year ending December 31, 2022;
2550	2550	19 (6) 11.4% cumulative persisting annual savings for the
2551	2551	20 year ending December 31, 2023;
2552	2552	21 (7) 12.2% cumulative persisting annual savings for the
2553	2553	22 year ending December 31, 2024;
2554	2554	23 (8) 13% cumulative persisting annual savings for the
2555	2555	24 year ending December 31, 2025;
2556	2556	25 (9) 13.6% cumulative persisting annual savings for the
2557	2557	26 year ending December 31, 2026;
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562
2563	2563	SB3637 - 71 - LRB103 38841 CES 68978 b
2564	2564
2565	2565
2566	2566	SB3637- 72 -LRB103 38841 CES 68978 b SB3637 - 72 - LRB103 38841 CES 68978 b
2567	2567	SB3637 - 72 - LRB103 38841 CES 68978 b
2568	2568	1 (10) 14.2% cumulative persisting annual savings for
2569	2569	2 the year ending December 31, 2027;
2570	2570	3 (11) 14.8% cumulative persisting annual savings for
2571	2571	4 the year ending December 31, 2028;
2572	2572	5 (12) 15.4% cumulative persisting annual savings for
2573	2573	6 the year ending December 31, 2029; and
2574	2574	7 (13) 16% cumulative persisting annual savings for the
2575	2575	8 year ending December 31, 2030.
2576	2576	9 No later than December 31, 2021, the Illinois Commerce
2577	2577	10 Commission shall establish additional cumulative persisting
2578	2578	11 annual savings goals for the years 2031 through 2035. No later
2579	2579	12 than December 31, 2024, the Illinois Commerce Commission shall
2580	2580	13 establish additional cumulative persisting annual savings
2581	2581	14 goals for the years 2036 through 2040. The Commission shall
2582	2582	15 also establish additional cumulative persisting annual savings
2583	2583	16 goals every 5 years thereafter to ensure that utilities always
2584	2584	17 have goals that extend at least 11 years into the future. The
2585	2585	18 cumulative persisting annual savings goals beyond the year
2586	2586	19 2030 shall increase by 0.9 0.6 percentage points per year,
2587	2587	20 absent a Commission decision to initiate a proceeding to
2588	2588	21 consider establishing goals that increase by more or less than
2589	2589	22 that amount. Such a proceeding must be conducted in accordance
2590	2590	23 with the procedures described in subsection (f) of this
2591	2591	24 Section. If such a proceeding is initiated, the cumulative
2592	2592	25 persisting annual savings goals established by the Commission
2593	2593	26 through that proceeding shall reflect the Commission's best
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598
2599	2599	SB3637 - 72 - LRB103 38841 CES 68978 b
2600	2600
2601	2601
2602	2602	SB3637- 73 -LRB103 38841 CES 68978 b SB3637 - 73 - LRB103 38841 CES 68978 b
2603	2603	SB3637 - 73 - LRB103 38841 CES 68978 b
2604	2604	1 estimate of the maximum amount of additional savings that are
2605	2605	2 forecast to be cost-effectively achievable unless such best
2606	2606	3 estimates would result in goals that represent less than 0.5
2607	2607	4 0.4 percentage point annual increases in total cumulative
2608	2608	5 persisting annual savings. The Commission may only establish
2609	2609	6 goals that represent less than 0.5 0.4 percentage point annual
2610	2610	7 increases in cumulative persisting annual savings if it can
2611	2611	8 demonstrate, based on clear and convincing evidence and
2612	2612	9 through independent analysis, that 0.5 0.4 percentage point
2613	2613	10 increases are not cost-effectively achievable. The Commission
2614	2614	11 shall inform its decision based on an energy efficiency
2615	2615	12 potential study that conforms to the requirements of this
2616	2616	13 Section.
2617	2617	14 (b-16) Beginning in 2026, and in every subsequent year,
2618	2618	15 each electric utility subject to this Section shall achieve
2619	2619	16 incremental annual savings equal to 2.25% of the utility's
2620	2620	17 average annual electricity sales in the second, third, and
2621	2621	18 fourth years prior to the start of each applicable multi-year
2622	2622	19 energy efficiency planning period referenced in subsection
2623	2623	20 (f), with an average savings life of at least 13 years. For the
2624	2624	21 purposes of this Section, "incremental annual savings" means
2625	2625	22 the total electric savings from all measures installed in a
2626	2626	23 calendar year that will be realized within 12 months of each
2627	2627	24 measure's installation. In no event can more than one-fifth of
2628	2628	25 the incremental annual savings counted towards a utility's
2629	2629	26 annual savings goal in any given year be derived from
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634
2635	2635	SB3637 - 73 - LRB103 38841 CES 68978 b
2636	2636
2637	2637
2638	2638	SB3637- 74 -LRB103 38841 CES 68978 b SB3637 - 74 - LRB103 38841 CES 68978 b
2639	2639	SB3637 - 74 - LRB103 38841 CES 68978 b
2640	2640	1 efficiency measures with average savings lives of less than 5
2641	2641	2 years.
2642	2642	3 (b-20) Each electric utility subject to this Section may
2643	2643	4 include cost-effective voltage optimization measures in its
2644	2644	5 plans submitted under subsections (f) and (g) of this Section,
2645	2645	6 and the costs incurred by a utility to implement the measures
2646	2646	7 under a Commission-approved plan shall be recovered under the
2647	2647	8 provisions of Article IX or Section 16-108.5 of this Act. For
2648	2648	9 purposes of this Section, the measure life of voltage
2649	2649	10 optimization measures shall be 15 years. The measure life
2650	2650	11 period is independent of the depreciation rate of the voltage
2651	2651	12 optimization assets deployed. Utilities may claim savings from
2652	2652	13 voltage optimization on circuits for more than 15 years if
2653	2653	14 they can demonstrate that they have made additional
2654	2654	15 investments necessary to enable voltage optimization savings
2655	2655	16 to continue beyond 15 years. Such demonstrations must be
2656	2656	17 subject to the review of independent evaluation.
2657	2657	18 Within 270 days after June 1, 2017 (the effective date of
2658	2658	19 Public Act 99-906), an electric utility that serves less than
2659	2659	20 3,000,000 retail customers but more than 500,000 retail
2660	2660	21 customers in the State shall file a plan with the Commission
2661	2661	22 that identifies the cost-effective voltage optimization
2662	2662	23 investment the electric utility plans to undertake through
2663	2663	24 December 31, 2024. The Commission, after notice and hearing,
2664	2664	25 shall approve or approve with modification the plan within 120
2665	2665	26 days after the plan's filing and, in the order approving or
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670
2671	2671	SB3637 - 74 - LRB103 38841 CES 68978 b
2672	2672
2673	2673
2674	2674	SB3637- 75 -LRB103 38841 CES 68978 b SB3637 - 75 - LRB103 38841 CES 68978 b
2675	2675	SB3637 - 75 - LRB103 38841 CES 68978 b
2676	2676	1 approving with modification the plan, the Commission shall
2677	2677	2 adjust the applicable cumulative persisting annual savings
2678	2678	3 goals set forth in subsection (b-15) to reflect any amount of
2679	2679	4 cost-effective energy savings approved by the Commission that
2680	2680	5 is greater than or less than the following cumulative
2681	2681	6 persisting annual savings values attributable to voltage
2682	2682	7 optimization for the applicable year:
2683	2683	8 (1) 0.0% of cumulative persisting annual savings for
2684	2684	9 the year ending December 31, 2018;
2685	2685	10 (2) 0.17% of cumulative persisting annual savings for
2686	2686	11 the year ending December 31, 2019;
2687	2687	12 (3) 0.17% of cumulative persisting annual savings for
2688	2688	13 the year ending December 31, 2020;
2689	2689	14 (4) 0.33% of cumulative persisting annual savings for
2690	2690	15 the year ending December 31, 2021;
2691	2691	16 (5) 0.5% of cumulative persisting annual savings for
2692	2692	17 the year ending December 31, 2022;
2693	2693	18 (6) 0.67% of cumulative persisting annual savings for
2694	2694	19 the year ending December 31, 2023;
2695	2695	20 (7) 0.83% of cumulative persisting annual savings for
2696	2696	21 the year ending December 31, 2024; and
2697	2697	22 (8) 1.0% of cumulative persisting annual savings for
2698	2698	23 the year ending December 31, 2025 and all subsequent
2699	2699	24 years.
2700	2700	25 (b-25) In the event an electric utility jointly offers an
2701	2701	26 energy efficiency measure or program with a gas utility under
2702	2702
2703	2703
2704	2704
2705	2705
2706	2706
2707	2707	SB3637 - 75 - LRB103 38841 CES 68978 b
2708	2708
2709	2709
2710	2710	SB3637- 76 -LRB103 38841 CES 68978 b SB3637 - 76 - LRB103 38841 CES 68978 b
2711	2711	SB3637 - 76 - LRB103 38841 CES 68978 b
2712	2712	1 plans approved under this Section and Section 8-104 of this
2713	2713	2 Act, the electric utility may continue offering the program,
2714	2714	3 including the gas energy efficiency measures, in the event the
2715	2715	4 gas utility discontinues funding the program. In that event,
2716	2716	5 the energy savings value associated with such other fuels
2717	2717	6 shall be converted to electric energy savings on an equivalent
2718	2718	7 Btu basis for the premises. However, the electric utility
2719	2719	8 shall prioritize programs for low-income residential customers
2720	2720	9 to the extent practicable. An electric utility may recover the
2721	2721	10 costs of offering the gas energy efficiency measures under
2722	2722	11 this subsection (b-25).
2723	2723	12 For those energy efficiency measures or programs that save
2724	2724	13 both electricity and other fuels but are not jointly offered
2725	2725	14 with a gas utility under plans approved under this Section and
2726	2726	15 Section 8-104 or not offered with an affiliated gas utility
2727	2727	16 under paragraph (6) of subsection (f) of Section 8-104 of this
2728	2728	17 Act, the electric utility may count savings of fuels other
2729	2729	18 than electricity toward the achievement of its annual savings
2730	2730	19 goal, and the energy savings value associated with such other
2731	2731	20 fuels shall be converted to electric energy savings on an
2732	2732	21 equivalent Btu basis at the premises.
2733	2733	22 In no event shall more than 10% of each year's applicable
2734	2734	23 annual total savings requirement as defined in paragraph (7.5)
2735	2735	24 of subsection (g) of this Section, or more than 10% of each
2736	2736	25 year's incremental annual savings as defined in subsection
2737	2737	26 (b-16) be met through savings of fuels other than electricity.
2738	2738
2739	2739
2740	2740
2741	2741
2742	2742
2743	2743	SB3637 - 76 - LRB103 38841 CES 68978 b
2744	2744
2745	2745
2746	2746	SB3637- 77 -LRB103 38841 CES 68978 b SB3637 - 77 - LRB103 38841 CES 68978 b
2747	2747	SB3637 - 77 - LRB103 38841 CES 68978 b
2748	2748	1 (b-27) Beginning in 2022, an electric utility may offer
2749	2749	2 and promote measures that electrify space heating, water
2750	2750	3 heating, cooling, drying, cooking, industrial processes, and
2751	2751	4 other building and industrial end uses that would otherwise be
2752	2752	5 served by combustion of fossil fuel at the premises, provided
2753	2753	6 that the electrification measures reduce total energy
2754	2754	7 consumption at the premises. The electric utility may count
2755	2755	8 the reduction in energy consumption at the premises toward
2756	2756	9 achievement of its annual savings goals. The reduction in
2757	2757	10 energy consumption at the premises shall be calculated as the
2758	2758	11 difference between: (A) the reduction in Btu consumption of
2759	2759	12 fossil fuels as a result of electrification, converted to
2760	2760	13 kilowatt-hour equivalents by dividing by 3,412 Btus per
2761	2761	14 kilowatt hour; and (B) the increase in kilowatt hours of
2762	2762	15 electricity consumption resulting from the displacement of
2763	2763	16 fossil fuel consumption as a result of electrification. An
2764	2764	17 electric utility may recover the costs of offering and
2765	2765	18 promoting electrification measures under this subsection
2766	2766	19 (b-27). At least 40% of all such costs must be for supporting
2767	2767	20 installation of electrification measures in low income
2768	2768	21 housing.
2769	2769	22 In no event shall electrification savings counted toward
2770	2770	23 each year's applicable annual total savings requirement, as
2771	2771	24 defined in paragraph (7.5) of subsection (g) of this Section,
2772	2772	25 be greater than:
2773	2773	26 (1) 5% per year for each year from 2022 through 2025;
2774	2774
2775	2775
2776	2776
2777	2777
2778	2778
2779	2779	SB3637 - 77 - LRB103 38841 CES 68978 b
2780	2780
2781	2781
2782	2782	SB3637- 78 -LRB103 38841 CES 68978 b SB3637 - 78 - LRB103 38841 CES 68978 b
2783	2783	SB3637 - 78 - LRB103 38841 CES 68978 b
2784	2784	1 (2) 10% per year for each year from 2026 through 2029;
2785	2785	2 and
2786	2786	3 (3) 15% per year for 2030 and all subsequent years.
2787	2787	4 In addition, a minimum of 25% of all electrification savings
2788	2788	5 counted toward a utility's applicable annual total savings
2789	2789	6 requirement must be from electrification of end uses in
2790	2790	7 low-income housing. The limitations on electrification savings
2791	2791	8 that may be counted toward a utility's annual savings goals
2792	2792	9 are separate from and in addition to the subsection (b-25)
2793	2793	10 limitations governing the counting of the other fuel savings
2794	2794	11 resulting from efficiency measures and programs.
2795	2795	12 As part of the annual informational filing to the
2796	2796	13 Commission that is required under paragraph (9) of subsection
2797	2797	14 (g) of this Section, each utility shall identify the specific
2798	2798	15 electrification measures offered under this subsection (b-27);
2799	2799	16 the quantity of each electrification measure that was
2800	2800	17 installed by its customers; the average total cost, average
2801	2801	18 utility cost, average reduction in fossil fuel consumption,
2802	2802	19 and average increase in electricity consumption associated
2803	2803	20 with each electrification measure; the portion of
2804	2804	21 installations of each electrification measure that were in
2805	2805	22 low-income single-family housing, low-income multifamily
2806	2806	23 housing, non-low-income single-family housing, non-low-income
2807	2807	24 multifamily housing, commercial buildings, and industrial
2808	2808	25 facilities; and the quantity of savings associated with each
2809	2809	26 measure category in each customer category that are being
2810	2810
2811	2811
2812	2812
2813	2813
2814	2814
2815	2815	SB3637 - 78 - LRB103 38841 CES 68978 b
2816	2816
2817	2817
2818	2818	SB3637- 79 -LRB103 38841 CES 68978 b SB3637 - 79 - LRB103 38841 CES 68978 b
2819	2819	SB3637 - 79 - LRB103 38841 CES 68978 b
2820	2820	1 counted toward the utility's applicable annual total savings
2821	2821	2 requirement or the utility's incremental annual savings as
2822	2822	3 defined in subsection (b-16). Prior to installing an
2823	2823	4 electrification measure, the utility shall provide a customer
2824	2824	5 with an estimate of the impact of the new measure on the
2825	2825	6 customer's average monthly electric bill and total annual
2826	2826	7 energy expenses.
2827	2827	8 (c) Electric utilities shall be responsible for overseeing
2828	2828	9 the design, development, and filing of energy efficiency plans
2829	2829	10 with the Commission and may, as part of that implementation,
2830	2830	11 outsource various aspects of program development and
2831	2831	12 implementation. A minimum of 10%, for electric utilities that
2832	2832	13 serve more than 3,000,000 retail customers in the State, and a
2833	2833	14 minimum of 7%, for electric utilities that serve less than
2834	2834	15 3,000,000 retail customers but more than 500,000 retail
2835	2835	16 customers in the State, of the utility's entire portfolio
2836	2836	17 funding level for a given year shall be used to procure
2837	2837	18 cost-effective energy efficiency measures from units of local
2838	2838	19 government, municipal corporations, school districts, public
2839	2839	20 housing, and community college districts, provided that a
2840	2840	21 minimum percentage of available funds shall be used to procure
2841	2841	22 energy efficiency from public housing, which percentage shall
2842	2842	23 be equal to public housing's share of public building energy
2843	2843	24 consumption.
2844	2844	25 The utilities shall also implement energy efficiency
2845	2845	26 measures targeted at low-income households, which, for
2846	2846
2847	2847
2848	2848
2849	2849
2850	2850
2851	2851	SB3637 - 79 - LRB103 38841 CES 68978 b
2852	2852
2853	2853
2854	2854	SB3637- 80 -LRB103 38841 CES 68978 b SB3637 - 80 - LRB103 38841 CES 68978 b
2855	2855	SB3637 - 80 - LRB103 38841 CES 68978 b
2856	2856	1 purposes of this Section, shall be defined as households at or
2857	2857	2 below 80% of area median income, and expenditures to implement
2858	2858	3 the measures shall be no less than $1,000,000 $40,000,000 per
2859	2859	4 year for electric utilities that serve more than 3,000,000
2860	2860	5 retail customers in the State and no less than $30,000
2861	2861	6 $13,000,000 per year for electric utilities that serve less
2862	2862	7 than 3,000,000 retail customers but more than 500,000 retail
2863	2863	8 customers in the State. The ratio of spending on efficiency
2864	2864	9 programs targeted at low-income multifamily buildings to
2865	2865	10 spending on efficiency programs targeted at low-income
2866	2866	11 single-family buildings shall be designed to achieve levels of
2867	2867	12 savings from each building type that are approximately
2868	2868	13 proportional to the magnitude of cost-effective lifetime
2869	2869	14 savings potential in each building type. Investment in
2870	2870	15 low-income whole-building weatherization programs shall
2871	2871	16 constitute a minimum of 80% of a utility's total budget
2872	2872	17 specifically dedicated to serving low-income customers.
2873	2873	18 The utilities shall work to bundle low-income energy
2874	2874	19 efficiency offerings with other programs that serve low-income
2875	2875	20 households to maximize the benefits going to these households.
2876	2876	21 The utilities shall market and implement low-income energy
2877	2877	22 efficiency programs in coordination with low-income assistance
2878	2878	23 programs, the Illinois Solar for All Program, and
2879	2879	24 weatherization whenever practicable. The program implementer
2880	2880	25 shall walk the customer through the enrollment process for any
2881	2881	26 programs for which the customer is eligible. The utilities
2882	2882
2883	2883
2884	2884
2885	2885
2886	2886
2887	2887	SB3637 - 80 - LRB103 38841 CES 68978 b
2888	2888
2889	2889
2890	2890	SB3637- 81 -LRB103 38841 CES 68978 b SB3637 - 81 - LRB103 38841 CES 68978 b
2891	2891	SB3637 - 81 - LRB103 38841 CES 68978 b
2892	2892	1 shall also pilot targeting customers with high arrearages,
2893	2893	2 high energy intensity (ratio of energy usage divided by home
2894	2894	3 or unit square footage), or energy assistance programs with
2895	2895	4 energy efficiency offerings, and then track reduction in
2896	2896	5 arrearages as a result of the targeting. This targeting and
2897	2897	6 bundling of low-income energy programs shall be offered to
2898	2898	7 both low-income single-family and multifamily customers
2899	2899	8 (owners and residents).
2900	2900	9 The utilities shall invest in health and safety measures
2901	2901	10 appropriate and necessary for comprehensively weatherizing a
2902	2902	11 home or multifamily building, and shall implement a health and
2903	2903	12 safety fund of at least 15% of the total income-qualified
2904	2904	13 weatherization budget that shall be used for the purpose of
2905	2905	14 making grants for technical assistance, construction,
2906	2906	15 reconstruction, improvement, or repair of buildings to
2907	2907	16 facilitate their participation in the energy efficiency
2908	2908	17 programs targeted at low-income single-family and multifamily
2909	2909	18 households. These funds may also be used for the purpose of
2910	2910	19 making grants for technical assistance, construction,
2911	2911	20 reconstruction, improvement, or repair of the following
2912	2912	21 buildings to facilitate their participation in the energy
2913	2913	22 efficiency programs created by this Section: (1) buildings
2914	2914	23 that are owned or operated by registered 501(c)(3) public
2915	2915	24 charities; and (2) day care centers, day care homes, or group
2916	2916	25 day care homes, as defined under 89 Ill. Adm. Code Part 406,
2917	2917	26 407, or 408, respectively.
2918	2918
2919	2919
2920	2920
2921	2921
2922	2922
2923	2923	SB3637 - 81 - LRB103 38841 CES 68978 b
2924	2924
2925	2925
2926	2926	SB3637- 82 -LRB103 38841 CES 68978 b SB3637 - 82 - LRB103 38841 CES 68978 b
2927	2927	SB3637 - 82 - LRB103 38841 CES 68978 b
2928	2928	1 Each electric utility shall assess opportunities to
2929	2929	2 implement cost-effective energy efficiency measures and
2930	2930	3 programs through a public housing authority or authorities
2931	2931	4 located in its service territory. If such opportunities are
2932	2932	5 identified, the utility shall propose such measures and
2933	2933	6 programs to address the opportunities. Expenditures to address
2934	2934	7 such opportunities shall be credited toward the minimum
2935	2935	8 procurement and expenditure requirements set forth in this
2936	2936	9 subsection (c).
2937	2937	10 Implementation of energy efficiency measures and programs
2938	2938	11 targeted at low-income households should be contracted, when
2939	2939	12 it is practicable, to independent third parties that have
2940	2940	13 demonstrated capabilities to serve such households, with a
2941	2941	14 preference for not-for-profit entities and government agencies
2942	2942	15 that have existing relationships with or experience serving
2943	2943	16 low-income communities in the State.
2944	2944	17 Each electric utility shall develop and implement
2945	2945	18 reporting procedures that address and assist in determining
2946	2946	19 the amount of energy savings that can be applied to the
2947	2947	20 low-income procurement and expenditure requirements set forth
2948	2948	21 in this subsection (c). Each electric utility shall also track
2949	2949	22 the types and quantities or volumes of insulation and air
2950	2950	23 sealing materials, and their associated energy saving
2951	2951	24 benefits, installed in energy efficiency programs targeted at
2952	2952	25 low-income single-family and multifamily households.
2953	2953	26 The electric utilities shall participate in a low-income
2954	2954
2955	2955
2956	2956
2957	2957
2958	2958
2959	2959	SB3637 - 82 - LRB103 38841 CES 68978 b
2960	2960
2961	2961
2962	2962	SB3637- 83 -LRB103 38841 CES 68978 b SB3637 - 83 - LRB103 38841 CES 68978 b
2963	2963	SB3637 - 83 - LRB103 38841 CES 68978 b
2964	2964	1 energy efficiency accountability committee ("the committee"),
2965	2965	2 which will directly inform the design, implementation, and
2966	2966	3 evaluation of the low-income and public-housing energy
2967	2967	4 efficiency programs. The committee shall be comprised of the
2968	2968	5 electric utilities subject to the requirements of this
2969	2969	6 Section, the gas utilities subject to the requirements of
2970	2970	7 Section 8-104 of this Act, the utilities' low-income energy
2971	2971	8 efficiency implementation contractors, nonprofit
2972	2972	9 organizations, community action agencies, advocacy groups,
2973	2973	10 State and local governmental agencies, public-housing
2974	2974	11 organizations, and representatives of community-based
2975	2975	12 organizations, especially those living in or working with
2976	2976	13 environmental justice communities and BIPOC communities. The
2977	2977	14 committee shall be composed of 2 geographically differentiated
2978	2978	15 subcommittees: one for stakeholders in northern Illinois and
2979	2979	16 one for stakeholders in central and southern Illinois. The
2980	2980	17 subcommittees shall meet together at least twice per year.
2981	2981	18 There shall be one statewide leadership committee led by
2982	2982	19 and composed of community-based organizations that are
2983	2983	20 representative of BIPOC and environmental justice communities
2984	2984	21 and that includes equitable representation from BIPOC
2985	2985	22 communities. The leadership committee shall be composed of an
2986	2986	23 equal number of representatives from the 2 subcommittees. The
2987	2987	24 subcommittees shall address specific programs and issues, with
2988	2988	25 the leadership committee convening targeted workgroups as
2989	2989	26 needed. The leadership committee may elect to work with an
2990	2990
2991	2991
2992	2992
2993	2993
2994	2994
2995	2995	SB3637 - 83 - LRB103 38841 CES 68978 b
2996	2996
2997	2997
2998	2998	SB3637- 84 -LRB103 38841 CES 68978 b SB3637 - 84 - LRB103 38841 CES 68978 b
2999	2999	SB3637 - 84 - LRB103 38841 CES 68978 b
3000	3000	1 independent facilitator to solicit and organize feedback,
3001	3001	2 recommendations and meeting participation from a wide variety
3002	3002	3 of community-based stakeholders. If a facilitator is used,
3003	3003	4 they shall be fair and responsive to the needs of all
3004	3004	5 stakeholders involved in the committee.
3005	3005	6 All committee meetings must be accessible, with rotating
3006	3006	7 locations if meetings are held in-person, virtual
3007	3007	8 participation options, and materials and agendas circulated in
3008	3008	9 advance.
3009	3009	10 There shall also be opportunities for direct input by
3010	3010	11 committee members outside of committee meetings, such as via
3011	3011	12 individual meetings, surveys, emails and calls, to ensure
3012	3012	13 robust participation by stakeholders with limited capacity and
3013	3013	14 ability to attend committee meetings. Committee meetings shall
3014	3014	15 emphasize opportunities to bundle and coordinate delivery of
3015	3015	16 low-income energy efficiency with other programs that serve
3016	3016	17 low-income communities, such as the Illinois Solar for All
3017	3017	18 Program and bill payment assistance programs. Meetings shall
3018	3018	19 include educational opportunities for stakeholders to learn
3019	3019	20 more about these additional offerings, and the committee shall
3020	3020	21 assist in figuring out the best methods for coordinated
3021	3021	22 delivery and implementation of offerings when serving
3022	3022	23 low-income communities. The committee shall directly and
3023	3023	24 equitably influence and inform utility low-income and
3024	3024	25 public-housing energy efficiency programs and priorities.
3025	3025	26 Participating utilities shall implement recommendations from
3026	3026
3027	3027
3028	3028
3029	3029
3030	3030
3031	3031	SB3637 - 84 - LRB103 38841 CES 68978 b
3032	3032
3033	3033
3034	3034	SB3637- 85 -LRB103 38841 CES 68978 b SB3637 - 85 - LRB103 38841 CES 68978 b
3035	3035	SB3637 - 85 - LRB103 38841 CES 68978 b
3036	3036	1 the committee whenever possible.
3037	3037	2 Participating utilities shall track and report how input
3038	3038	3 from the committee has led to new approaches and changes in
3039	3039	4 their energy efficiency portfolios. This reporting shall occur
3040	3040	5 at committee meetings and in quarterly energy efficiency
3041	3041	6 reports to the Stakeholder Advisory Group and Illinois
3042	3042	7 Commerce Commission, and other relevant reporting mechanisms.
3043	3043	8 Participating utilities shall also report on relevant equity
3044	3044	9 data and metrics requested by the committee, such as energy
3045	3045	10 burden data, geographic, racial, and other relevant
3046	3046	11 demographic data on where programs are being delivered and
3047	3047	12 what populations programs are serving.
3048	3048	13 The Illinois Commerce Commission shall oversee and have
3049	3049	14 relevant staff participate in the committee. The committee
3050	3050	15 shall have a budget of 0.25% of each utility's entire
3051	3051	16 efficiency portfolio funding for a given year. The budget
3052	3052	17 shall be overseen by the Commission. The budget shall be used
3053	3053	18 to provide grants for community-based organizations serving on
3054	3054	19 the leadership committee, stipends for community-based
3055	3055	20 organizations participating in the committee, grants for
3056	3056	21 community-based organizations to do energy efficiency outreach
3057	3057	22 and education, and relevant meeting needs as determined by the
3058	3058	23 leadership committee. The education and outreach shall
3059	3059	24 include, but is not limited to, basic energy efficiency
3060	3060	25 education, information about low-income energy efficiency
3061	3061	26 programs, and information on the committee's purpose,
3062	3062
3063	3063
3064	3064
3065	3065
3066	3066
3067	3067	SB3637 - 85 - LRB103 38841 CES 68978 b
3068	3068
3069	3069
3070	3070	SB3637- 86 -LRB103 38841 CES 68978 b SB3637 - 86 - LRB103 38841 CES 68978 b
3071	3071	SB3637 - 86 - LRB103 38841 CES 68978 b
3072	3072	1 structure, and activities.
3073	3073	2 (d) Notwithstanding any other provision of law to the
3074	3074	3 contrary, a utility providing approved energy efficiency
3075	3075	4 measures and, if applicable, demand-response measures in the
3076	3076	5 State shall be permitted to recover all reasonable and
3077	3077	6 prudently incurred costs of those measures from all retail
3078	3078	7 customers, except as provided in subsection (l) of this
3079	3079	8 Section, as follows, provided that nothing in this subsection
3080	3080	9 (d) permits the double recovery of such costs from customers:
3081	3081	10 (1) The utility may recover its costs through an
3082	3082	11 automatic adjustment clause tariff filed with and approved
3083	3083	12 by the Commission. The tariff shall be established outside
3084	3084	13 the context of a general rate case. Each year the
3085	3085	14 Commission shall initiate a review to reconcile any
3086	3086	15 amounts collected with the actual costs and to determine
3087	3087	16 the required adjustment to the annual tariff factor to
3088	3088	17 match annual expenditures. To enable the financing of the
3089	3089	18 incremental capital expenditures, including regulatory
3090	3090	19 assets, for electric utilities that serve less than
3091	3091	20 3,000,000 retail customers but more than 500,000 retail
3092	3092	21 customers in the State, the utility's actual year-end
3093	3093	22 capital structure that includes a common equity ratio,
3094	3094	23 excluding goodwill, of up to and including 50% of the
3095	3095	24 total capital structure shall be deemed reasonable and
3096	3096	25 used to set rates.
3097	3097	26 (2) A utility may recover its costs through an energy
3098	3098
3099	3099
3100	3100
3101	3101
3102	3102
3103	3103	SB3637 - 86 - LRB103 38841 CES 68978 b
3104	3104
3105	3105
3106	3106	SB3637- 87 -LRB103 38841 CES 68978 b SB3637 - 87 - LRB103 38841 CES 68978 b
3107	3107	SB3637 - 87 - LRB103 38841 CES 68978 b
3108	3108	1 efficiency formula rate approved by the Commission under a
3109	3109	2 filing under subsections (f) and (g) of this Section,
3110	3110	3 which shall specify the cost components that form the
3111	3111	4 basis of the rate charged to customers with sufficient
3112	3112	5 specificity to operate in a standardized manner and be
3113	3113	6 updated annually with transparent information that
3114	3114	7 reflects the utility's actual costs to be recovered during
3115	3115	8 the applicable rate year, which is the period beginning
3116	3116	9 with the first billing day of January and extending
3117	3117	10 through the last billing day of the following December.
3118	3118	11 The energy efficiency formula rate shall be implemented
3119	3119	12 through a tariff filed with the Commission under
3120	3120	13 subsections (f) and (g) of this Section that is consistent
3121	3121	14 with the provisions of this paragraph (2) and that shall
3122	3122	15 be applicable to all delivery services customers. The
3123	3123	16 Commission shall conduct an investigation of the tariff in
3124	3124	17 a manner consistent with the provisions of this paragraph
3125	3125	18 (2), subsections (f) and (g) of this Section, and the
3126	3126	19 provisions of Article IX of this Act to the extent they do
3127	3127	20 not conflict with this paragraph (2). The energy
3128	3128	21 efficiency formula rate approved by the Commission shall
3129	3129	22 remain in effect at the discretion of the utility and
3130	3130	23 shall do the following:
3131	3131	24 (A) Provide for the recovery of the utility's
3132	3132	25 actual costs incurred under this Section that are
3133	3133	26 prudently incurred and reasonable in amount consistent
3134	3134
3135	3135
3136	3136
3137	3137
3138	3138
3139	3139	SB3637 - 87 - LRB103 38841 CES 68978 b
3140	3140
3141	3141
3142	3142	SB3637- 88 -LRB103 38841 CES 68978 b SB3637 - 88 - LRB103 38841 CES 68978 b
3143	3143	SB3637 - 88 - LRB103 38841 CES 68978 b
3144	3144	1 with Commission practice and law. The sole fact that a
3145	3145	2 cost differs from that incurred in a prior calendar
3146	3146	3 year or that an investment is different from that made
3147	3147	4 in a prior calendar year shall not imply the
3148	3148	5 imprudence or unreasonableness of that cost or
3149	3149	6 investment.
3150	3150	7 (B) Reflect the utility's actual year-end capital
3151	3151	8 structure for the applicable calendar year, excluding
3152	3152	9 goodwill, subject to a determination of prudence and
3153	3153	10 reasonableness consistent with Commission practice and
3154	3154	11 law. To enable the financing of the incremental
3155	3155	12 capital expenditures, including regulatory assets, for
3156	3156	13 electric utilities that serve less than 3,000,000
3157	3157	14 retail customers but more than 500,000 retail
3158	3158	15 customers in the State, a participating electric
3159	3159	16 utility's actual year-end capital structure that
3160	3160	17 includes a common equity ratio, excluding goodwill, of
3161	3161	18 up to and including 50% of the total capital structure
3162	3162	19 shall be deemed reasonable and used to set rates.
3163	3163	20 (C) Include a cost of equity, which shall be
3164	3164	21 calculated as the sum of the following:
3165	3165	22 (i) the average for the applicable calendar
3166	3166	23 year of the monthly average yields of 30-year U.S.
3167	3167	24 Treasury bonds published by the Board of Governors
3168	3168	25 of the Federal Reserve System in its weekly H.15
3169	3169	26 Statistical Release or successor publication; and
3170	3170
3171	3171
3172	3172
3173	3173
3174	3174
3175	3175	SB3637 - 88 - LRB103 38841 CES 68978 b
3176	3176
3177	3177
3178	3178	SB3637- 89 -LRB103 38841 CES 68978 b SB3637 - 89 - LRB103 38841 CES 68978 b
3179	3179	SB3637 - 89 - LRB103 38841 CES 68978 b
3180	3180	1 (ii) 580 basis points.
3181	3181	2 At such time as the Board of Governors of the
3182	3182	3 Federal Reserve System ceases to include the monthly
3183	3183	4 average yields of 30-year U.S. Treasury bonds in its
3184	3184	5 weekly H.15 Statistical Release or successor
3185	3185	6 publication, the monthly average yields of the U.S.
3186	3186	7 Treasury bonds then having the longest duration
3187	3187	8 published by the Board of Governors in its weekly H.15
3188	3188	9 Statistical Release or successor publication shall
3189	3189	10 instead be used for purposes of this paragraph (2).
3190	3190	11 (D) Permit and set forth protocols, subject to a
3191	3191	12 determination of prudence and reasonableness
3192	3192	13 consistent with Commission practice and law, for the
3193	3193	14 following:
3194	3194	15 (i) recovery of incentive compensation expense
3195	3195	16 that is based on the achievement of operational
3196	3196	17 metrics, including metrics related to budget
3197	3197	18 controls, outage duration and frequency, safety,
3198	3198	19 customer service, efficiency and productivity, and
3199	3199	20 environmental compliance; however, this protocol
3200	3200	21 shall not apply if such expense related to costs
3201	3201	22 incurred under this Section is recovered under
3202	3202	23 Article IX or Section 16-108.5 of this Act;
3203	3203	24 incentive compensation expense that is based on
3204	3204	25 net income or an affiliate's earnings per share
3205	3205	26 shall not be recoverable under the energy
3206	3206
3207	3207
3208	3208
3209	3209
3210	3210
3211	3211	SB3637 - 89 - LRB103 38841 CES 68978 b
3212	3212
3213	3213
3214	3214	SB3637- 90 -LRB103 38841 CES 68978 b SB3637 - 90 - LRB103 38841 CES 68978 b
3215	3215	SB3637 - 90 - LRB103 38841 CES 68978 b
3216	3216	1 efficiency formula rate;
3217	3217	2 (ii) recovery of pension and other
3218	3218	3 post-employment benefits expense, provided that
3219	3219	4 such costs are supported by an actuarial study;
3220	3220	5 however, this protocol shall not apply if such
3221	3221	6 expense related to costs incurred under this
3222	3222	7 Section is recovered under Article IX or Section
3223	3223	8 16-108.5 of this Act;
3224	3224	9 (iii) recovery of existing regulatory assets
3225	3225	10 over the periods previously authorized by the
3226	3226	11 Commission;
3227	3227	12 (iv) as described in subsection (e),
3228	3228	13 amortization of costs incurred under this Section;
3229	3229	14 and
3230	3230	15 (v) projected, weather normalized billing
3231	3231	16 determinants for the applicable rate year.
3232	3232	17 (E) Provide for an annual reconciliation, as
3233	3233	18 described in paragraph (3) of this subsection (d),
3234	3234	19 less any deferred taxes related to the reconciliation,
3235	3235	20 with interest at an annual rate of return equal to the
3236	3236	21 utility's weighted average cost of capital, including
3237	3237	22 a revenue conversion factor calculated to recover or
3238	3238	23 refund all additional income taxes that may be payable
3239	3239	24 or receivable as a result of that return, of the energy
3240	3240	25 efficiency revenue requirement reflected in rates for
3241	3241	26 each calendar year, beginning with the calendar year
3242	3242
3243	3243
3244	3244
3245	3245
3246	3246
3247	3247	SB3637 - 90 - LRB103 38841 CES 68978 b
3248	3248
3249	3249
3250	3250	SB3637- 91 -LRB103 38841 CES 68978 b SB3637 - 91 - LRB103 38841 CES 68978 b
3251	3251	SB3637 - 91 - LRB103 38841 CES 68978 b
3252	3252	1 in which the utility files its energy efficiency
3253	3253	2 formula rate tariff under this paragraph (2), with
3254	3254	3 what the revenue requirement would have been had the
3255	3255	4 actual cost information for the applicable calendar
3256	3256	5 year been available at the filing date.
3257	3257	6 The utility shall file, together with its tariff, the
3258	3258	7 projected costs to be incurred by the utility during the
3259	3259	8 rate year under the utility's multi-year plan approved
3260	3260	9 under subsections (f) and (g) of this Section, including,
3261	3261	10 but not limited to, the projected capital investment costs
3262	3262	11 and projected regulatory asset balances with
3263	3263	12 correspondingly updated depreciation and amortization
3264	3264	13 reserves and expense, that shall populate the energy
3265	3265	14 efficiency formula rate and set the initial rates under
3266	3266	15 the formula.
3267	3267	16 The Commission shall review the proposed tariff in
3268	3268	17 conjunction with its review of a proposed multi-year plan,
3269	3269	18 as specified in paragraph (5) of subsection (g) of this
3270	3270	19 Section. The review shall be based on the same evidentiary
3271	3271	20 standards, including, but not limited to, those concerning
3272	3272	21 the prudence and reasonableness of the costs incurred by
3273	3273	22 the utility, the Commission applies in a hearing to review
3274	3274	23 a filing for a general increase in rates under Article IX
3275	3275	24 of this Act. The initial rates shall take effect beginning
3276	3276	25 with the January monthly billing period following the
3277	3277	26 Commission's approval.
3278	3278
3279	3279
3280	3280
3281	3281
3282	3282
3283	3283	SB3637 - 91 - LRB103 38841 CES 68978 b
3284	3284
3285	3285
3286	3286	SB3637- 92 -LRB103 38841 CES 68978 b SB3637 - 92 - LRB103 38841 CES 68978 b
3287	3287	SB3637 - 92 - LRB103 38841 CES 68978 b
3288	3288	1 The tariff's rate design and cost allocation across
3289	3289	2 customer classes shall be consistent with the utility's
3290	3290	3 automatic adjustment clause tariff in effect on June 1,
3291	3291	4 2017 (the effective date of Public Act 99-906); however,
3292	3292	5 the Commission may revise the tariff's rate design and
3293	3293	6 cost allocation in subsequent proceedings under paragraph
3294	3294	7 (3) of this subsection (d).
3295	3295	8 If the energy efficiency formula rate is terminated,
3296	3296	9 the then current rates shall remain in effect until such
3297	3297	10 time as the energy efficiency costs are incorporated into
3298	3298	11 new rates that are set under this subsection (d) or
3299	3299	12 Article IX of this Act, subject to retroactive rate
3300	3300	13 adjustment, with interest, to reconcile rates charged with
3301	3301	14 actual costs.
3302	3302	15 (3) The provisions of this paragraph (3) shall only
3303	3303	16 apply to an electric utility that has elected to file an
3304	3304	17 energy efficiency formula rate under paragraph (2) of this
3305	3305	18 subsection (d). Subsequent to the Commission's issuance of
3306	3306	19 an order approving the utility's energy efficiency formula
3307	3307	20 rate structure and protocols, and initial rates under
3308	3308	21 paragraph (2) of this subsection (d), the utility shall
3309	3309	22 file, on or before June 1 of each year, with the Chief
3310	3310	23 Clerk of the Commission its updated cost inputs to the
3311	3311	24 energy efficiency formula rate for the applicable rate
3312	3312	25 year and the corresponding new charges, as well as the
3313	3313	26 information described in paragraph (9) of subsection (g)
3314	3314
3315	3315
3316	3316
3317	3317
3318	3318
3319	3319	SB3637 - 92 - LRB103 38841 CES 68978 b
3320	3320
3321	3321
3322	3322	SB3637- 93 -LRB103 38841 CES 68978 b SB3637 - 93 - LRB103 38841 CES 68978 b
3323	3323	SB3637 - 93 - LRB103 38841 CES 68978 b
3324	3324	1 of this Section. Each such filing shall conform to the
3325	3325	2 following requirements and include the following
3326	3326	3 information:
3327	3327	4 (A) The inputs to the energy efficiency formula
3328	3328	5 rate for the applicable rate year shall be based on the
3329	3329	6 projected costs to be incurred by the utility during
3330	3330	7 the rate year under the utility's multi-year plan
3331	3331	8 approved under subsections (f) and (g) of this
3332	3332	9 Section, including, but not limited to, projected
3333	3333	10 capital investment costs and projected regulatory
3334	3334	11 asset balances with correspondingly updated
3335	3335	12 depreciation and amortization reserves and expense.
3336	3336	13 The filing shall also include a reconciliation of the
3337	3337	14 energy efficiency revenue requirement that was in
3338	3338	15 effect for the prior rate year (as set by the cost
3339	3339	16 inputs for the prior rate year) with the actual
3340	3340	17 revenue requirement for the prior rate year
3341	3341	18 (determined using a year-end rate base) that uses
3342	3342	19 amounts reflected in the applicable FERC Form 1 that
3343	3343	20 reports the actual costs for the prior rate year. Any
3344	3344	21 over-collection or under-collection indicated by such
3345	3345	22 reconciliation shall be reflected as a credit against,
3346	3346	23 or recovered as an additional charge to, respectively,
3347	3347	24 with interest calculated at a rate equal to the
3348	3348	25 utility's weighted average cost of capital approved by
3349	3349	26 the Commission for the prior rate year, the charges
3350	3350
3351	3351
3352	3352
3353	3353
3354	3354
3355	3355	SB3637 - 93 - LRB103 38841 CES 68978 b
3356	3356
3357	3357
3358	3358	SB3637- 94 -LRB103 38841 CES 68978 b SB3637 - 94 - LRB103 38841 CES 68978 b
3359	3359	SB3637 - 94 - LRB103 38841 CES 68978 b
3360	3360	1 for the applicable rate year. Such over-collection or
3361	3361	2 under-collection shall be adjusted to remove any
3362	3362	3 deferred taxes related to the reconciliation, for
3363	3363	4 purposes of calculating interest at an annual rate of
3364	3364	5 return equal to the utility's weighted average cost of
3365	3365	6 capital approved by the Commission for the prior rate
3366	3366	7 year, including a revenue conversion factor calculated
3367	3367	8 to recover or refund all additional income taxes that
3368	3368	9 may be payable or receivable as a result of that
3369	3369	10 return. Each reconciliation shall be certified by the
3370	3370	11 participating utility in the same manner that FERC
3371	3371	12 Form 1 is certified. The filing shall also include the
3372	3372	13 charge or credit, if any, resulting from the
3373	3373	14 calculation required by subparagraph (E) of paragraph
3374	3374	15 (2) of this subsection (d).
3375	3375	16 Notwithstanding any other provision of law to the
3376	3376	17 contrary, the intent of the reconciliation is to
3377	3377	18 ultimately reconcile both the revenue requirement
3378	3378	19 reflected in rates for each calendar year, beginning
3379	3379	20 with the calendar year in which the utility files its
3380	3380	21 energy efficiency formula rate tariff under paragraph
3381	3381	22 (2) of this subsection (d), with what the revenue
3382	3382	23 requirement determined using a year-end rate base for
3383	3383	24 the applicable calendar year would have been had the
3384	3384	25 actual cost information for the applicable calendar
3385	3385	26 year been available at the filing date.
3386	3386
3387	3387
3388	3388
3389	3389
3390	3390
3391	3391	SB3637 - 94 - LRB103 38841 CES 68978 b
3392	3392
3393	3393
3394	3394	SB3637- 95 -LRB103 38841 CES 68978 b SB3637 - 95 - LRB103 38841 CES 68978 b
3395	3395	SB3637 - 95 - LRB103 38841 CES 68978 b
3396	3396	1 For purposes of this Section, "FERC Form 1" means
3397	3397	2 the Annual Report of Major Electric Utilities,
3398	3398	3 Licensees and Others that electric utilities are
3399	3399	4 required to file with the Federal Energy Regulatory
3400	3400	5 Commission under the Federal Power Act, Sections 3,
3401	3401	6 4(a), 304 and 209, modified as necessary to be
3402	3402	7 consistent with 83 Ill. Adm. Code Part 415 as of May 1,
3403	3403	8 2011. Nothing in this Section is intended to allow
3404	3404	9 costs that are not otherwise recoverable to be
3405	3405	10 recoverable by virtue of inclusion in FERC Form 1.
3406	3406	11 (B) The new charges shall take effect beginning on
3407	3407	12 the first billing day of the following January billing
3408	3408	13 period and remain in effect through the last billing
3409	3409	14 day of the next December billing period regardless of
3410	3410	15 whether the Commission enters upon a hearing under
3411	3411	16 this paragraph (3).
3412	3412	17 (C) The filing shall include relevant and
3413	3413	18 necessary data and documentation for the applicable
3414	3414	19 rate year. Normalization adjustments shall not be
3415	3415	20 required.
3416	3416	21 Within 45 days after the utility files its annual
3417	3417	22 update of cost inputs to the energy efficiency formula
3418	3418	23 rate, the Commission shall with reasonable notice,
3419	3419	24 initiate a proceeding concerning whether the projected
3420	3420	25 costs to be incurred by the utility and recovered during
3421	3421	26 the applicable rate year, and that are reflected in the
3422	3422
3423	3423
3424	3424
3425	3425
3426	3426
3427	3427	SB3637 - 95 - LRB103 38841 CES 68978 b
3428	3428
3429	3429
3430	3430	SB3637- 96 -LRB103 38841 CES 68978 b SB3637 - 96 - LRB103 38841 CES 68978 b
3431	3431	SB3637 - 96 - LRB103 38841 CES 68978 b
3432	3432	1 inputs to the energy efficiency formula rate, are
3433	3433	2 consistent with the utility's approved multi-year plan
3434	3434	3 under subsections (f) and (g) of this Section and whether
3435	3435	4 the costs incurred by the utility during the prior rate
3436	3436	5 year were prudent and reasonable. The Commission shall
3437	3437	6 also have the authority to investigate the information and
3438	3438	7 data described in paragraph (9) of subsection (g) of this
3439	3439	8 Section, including the proposed adjustment to the
3440	3440	9 utility's return on equity component of its weighted
3441	3441	10 average cost of capital. During the course of the
3442	3442	11 proceeding, each objection shall be stated with
3443	3443	12 particularity and evidence provided in support thereof,
3444	3444	13 after which the utility shall have the opportunity to
3445	3445	14 rebut the evidence. Discovery shall be allowed consistent
3446	3446	15 with the Commission's Rules of Practice, which Rules of
3447	3447	16 Practice shall be enforced by the Commission or the
3448	3448	17 assigned administrative law judge. The Commission shall
3449	3449	18 apply the same evidentiary standards, including, but not
3450	3450	19 limited to, those concerning the prudence and
3451	3451	20 reasonableness of the costs incurred by the utility,
3452	3452	21 during the proceeding as it would apply in a proceeding to
3453	3453	22 review a filing for a general increase in rates under
3454	3454	23 Article IX of this Act. The Commission shall not, however,
3455	3455	24 have the authority in a proceeding under this paragraph
3456	3456	25 (3) to consider or order any changes to the structure or
3457	3457	26 protocols of the energy efficiency formula rate approved
3458	3458
3459	3459
3460	3460
3461	3461
3462	3462
3463	3463	SB3637 - 96 - LRB103 38841 CES 68978 b
3464	3464
3465	3465
3466	3466	SB3637- 97 -LRB103 38841 CES 68978 b SB3637 - 97 - LRB103 38841 CES 68978 b
3467	3467	SB3637 - 97 - LRB103 38841 CES 68978 b
3468	3468	1 under paragraph (2) of this subsection (d). In a
3469	3469	2 proceeding under this paragraph (3), the Commission shall
3470	3470	3 enter its order no later than the earlier of 195 days after
3471	3471	4 the utility's filing of its annual update of cost inputs
3472	3472	5 to the energy efficiency formula rate or December 15. The
3473	3473	6 utility's proposed return on equity calculation, as
3474	3474	7 described in paragraphs (7) through (9) of subsection (g)
3475	3475	8 of this Section, shall be deemed the final, approved
3476	3476	9 calculation on December 15 of the year in which it is filed
3477	3477	10 unless the Commission enters an order on or before
3478	3478	11 December 15, after notice and hearing, that modifies such
3479	3479	12 calculation consistent with this Section. The Commission's
3480	3480	13 determinations of the prudence and reasonableness of the
3481	3481	14 costs incurred, and determination of such return on equity
3482	3482	15 calculation, for the applicable calendar year shall be
3483	3483	16 final upon entry of the Commission's order and shall not
3484	3484	17 be subject to reopening, reexamination, or collateral
3485	3485	18 attack in any other Commission proceeding, case, docket,
3486	3486	19 order, rule, or regulation; however, nothing in this
3487	3487	20 paragraph (3) shall prohibit a party from petitioning the
3488	3488	21 Commission to rehear or appeal to the courts the order
3489	3489	22 under the provisions of this Act.
3490	3490	23 (e) Beginning on June 1, 2017 (the effective date of
3491	3491	24 Public Act 99-906), a utility subject to the requirements of
3492	3492	25 this Section may elect to defer, as a regulatory asset, up to
3493	3493	26 the full amount of its expenditures incurred under this
3494	3494
3495	3495
3496	3496
3497	3497
3498	3498
3499	3499	SB3637 - 97 - LRB103 38841 CES 68978 b
3500	3500
3501	3501
3502	3502	SB3637- 98 -LRB103 38841 CES 68978 b SB3637 - 98 - LRB103 38841 CES 68978 b
3503	3503	SB3637 - 98 - LRB103 38841 CES 68978 b
3504	3504	1 Section for each annual period, including, but not limited to,
3505	3505	2 any expenditures incurred above the funding level set by
3506	3506	3 subsection (f) of this Section for a given year. The total
3507	3507	4 expenditures deferred as a regulatory asset in a given year
3508	3508	5 shall be amortized and recovered over a period that is equal to
3509	3509	6 the weighted average of the energy efficiency measure lives
3510	3510	7 implemented for that year that are reflected in the regulatory
3511	3511	8 asset. The unamortized balance shall be recognized as of
3512	3512	9 December 31 for a given year. The utility shall also earn a
3513	3513	10 return on the total of the unamortized balances of all of the
3514	3514	11 energy efficiency regulatory assets, less any deferred taxes
3515	3515	12 related to those unamortized balances, at an annual rate equal
3516	3516	13 to the utility's weighted average cost of capital that
3517	3517	14 includes, based on a year-end capital structure, the utility's
3518	3518	15 actual cost of debt for the applicable calendar year and a cost
3519	3519	16 of equity, which shall be calculated as the sum of the (i) the
3520	3520	17 average for the applicable calendar year of the monthly
3521	3521	18 average yields of 30-year U.S. Treasury bonds published by the
3522	3522	19 Board of Governors of the Federal Reserve System in its weekly
3523	3523	20 H.15 Statistical Release or successor publication; and (ii)
3524	3524	21 580 basis points, including a revenue conversion factor
3525	3525	22 calculated to recover or refund all additional income taxes
3526	3526	23 that may be payable or receivable as a result of that return.
3527	3527	24 Capital investment costs shall be depreciated and recovered
3528	3528	25 over their useful lives consistent with generally accepted
3529	3529	26 accounting principles. The weighted average cost of capital
3530	3530
3531	3531
3532	3532
3533	3533
3534	3534
3535	3535	SB3637 - 98 - LRB103 38841 CES 68978 b
3536	3536
3537	3537
3538	3538	SB3637- 99 -LRB103 38841 CES 68978 b SB3637 - 99 - LRB103 38841 CES 68978 b
3539	3539	SB3637 - 99 - LRB103 38841 CES 68978 b
3540	3540	1 shall be applied to the capital investment cost balance, less
3541	3541	2 any accumulated depreciation and accumulated deferred income
3542	3542	3 taxes, as of December 31 for a given year.
3543	3543	4 When an electric utility creates a regulatory asset under
3544	3544	5 the provisions of this Section, the costs are recovered over a
3545	3545	6 period during which customers also receive a benefit which is
3546	3546	7 in the public interest. Accordingly, it is the intent of the
3547	3547	8 General Assembly that an electric utility that elects to
3548	3548	9 create a regulatory asset under the provisions of this Section
3549	3549	10 shall recover all of the associated costs as set forth in this
3550	3550	11 Section. After the Commission has approved the prudence and
3551	3551	12 reasonableness of the costs that comprise the regulatory
3552	3552	13 asset, the electric utility shall be permitted to recover all
3553	3553	14 such costs, and the value and recoverability through rates of
3554	3554	15 the associated regulatory asset shall not be limited, altered,
3555	3555	16 impaired, or reduced.
3556	3556	17 (f) Beginning in 2017, each electric utility shall file an
3557	3557	18 energy efficiency plan with the Commission to meet the energy
3558	3558	19 efficiency standards for the next applicable multi-year period
3559	3559	20 beginning January 1 of the year following the filing,
3560	3560	21 according to the schedule set forth in paragraphs (1) through
3561	3561	22 (3) of this subsection (f). If a utility does not file such a
3562	3562	23 plan on or before the applicable filing deadline for the plan,
3563	3563	24 it shall face a penalty of $100,000 per day until the plan is
3564	3564	25 filed.
3565	3565	26 (1) No later than 30 days after June 1, 2017 (the
3566	3566
3567	3567
3568	3568
3569	3569
3570	3570
3571	3571	SB3637 - 99 - LRB103 38841 CES 68978 b
3572	3572
3573	3573
3574	3574	SB3637- 100 -LRB103 38841 CES 68978 b SB3637 - 100 - LRB103 38841 CES 68978 b
3575	3575	SB3637 - 100 - LRB103 38841 CES 68978 b
3576	3576	1 effective date of Public Act 99-906), each electric
3577	3577	2 utility shall file a 4-year energy efficiency plan
3578	3578	3 commencing on January 1, 2018 that is designed to achieve
3579	3579	4 the cumulative persisting annual savings goals specified
3580	3580	5 in paragraphs (1) through (4) of subsection (b-5) of this
3581	3581	6 Section or in paragraphs (1) through (4) of subsection
3582	3582	7 (b-15) of this Section, as applicable, through
3583	3583	8 implementation of energy efficiency measures; however, the
3584	3584	9 goals may be reduced if the utility's expenditures are
3585	3585	10 limited pursuant to subsection (m) of this Section or, for
3586	3586	11 a utility that serves less than 3,000,000 retail
3587	3587	12 customers, if each of the following conditions are met:
3588	3588	13 (A) the plan's analysis and forecasts of the utility's
3589	3589	14 ability to acquire energy savings demonstrate that
3590	3590	15 achievement of such goals is not cost effective; and (B)
3591	3591	16 the amount of energy savings achieved by the utility as
3592	3592	17 determined by the independent evaluator for the most
3593	3593	18 recent year for which savings have been evaluated
3594	3594	19 preceding the plan filing was less than the average annual
3595	3595	20 amount of savings required to achieve the goals for the
3596	3596	21 applicable 4-year plan period. Except as provided in
3597	3597	22 subsection (m) of this Section, annual increases in
3598	3598	23 cumulative persisting annual savings goals during the
3599	3599	24 applicable 4-year plan period shall not be reduced to
3600	3600	25 amounts that are less than the maximum amount of
3601	3601	26 cumulative persisting annual savings that is forecast to
3602	3602
3603	3603
3604	3604
3605	3605
3606	3606
3607	3607	SB3637 - 100 - LRB103 38841 CES 68978 b
3608	3608
3609	3609
3610	3610	SB3637- 101 -LRB103 38841 CES 68978 b SB3637 - 101 - LRB103 38841 CES 68978 b
3611	3611	SB3637 - 101 - LRB103 38841 CES 68978 b
3612	3612	1 be cost-effectively achievable during the 4-year plan
3613	3613	2 period. The Commission shall review any proposed goal
3614	3614	3 reduction as part of its review and approval of the
3615	3615	4 utility's proposed plan.
3616	3616	5 (2) No later than March 1, 2021, each electric utility
3617	3617	6 shall file a 4-year energy efficiency plan commencing on
3618	3618	7 January 1, 2022 that is designed to achieve the cumulative
3619	3619	8 persisting annual savings goals specified in paragraphs
3620	3620	9 (5) through (8) of subsection (b-5) of this Section or in
3621	3621	10 paragraphs (5) through (8) of subsection (b-15) of this
3622	3622	11 Section, as applicable, through implementation of energy
3623	3623	12 efficiency measures; however, the goals may be reduced if
3624	3624	13 either (1) clear and convincing evidence demonstrates,
3625	3625	14 through independent analysis, that the expenditure limits
3626	3626	15 in subsection (m) of this Section preclude full
3627	3627	16 achievement of the goals or (2) each of the following
3628	3628	17 conditions are met: (A) the plan's analysis and forecasts
3629	3629	18 of the utility's ability to acquire energy savings
3630	3630	19 demonstrate by clear and convincing evidence and through
3631	3631	20 independent analysis that achievement of such goals is not
3632	3632	21 cost effective; and (B) the amount of energy savings
3633	3633	22 achieved by the utility as determined by the independent
3634	3634	23 evaluator for the most recent year for which savings have
3635	3635	24 been evaluated preceding the plan filing was less than the
3636	3636	25 average annual amount of savings required to achieve the
3637	3637	26 goals for the applicable 4-year plan period. If there is
3638	3638
3639	3639
3640	3640
3641	3641
3642	3642
3643	3643	SB3637 - 101 - LRB103 38841 CES 68978 b
3644	3644
3645	3645
3646	3646	SB3637- 102 -LRB103 38841 CES 68978 b SB3637 - 102 - LRB103 38841 CES 68978 b
3647	3647	SB3637 - 102 - LRB103 38841 CES 68978 b
3648	3648	1 not clear and convincing evidence that achieving the
3649	3649	2 savings goals specified in paragraph (b-5) or (b-15) of
3650	3650	3 this Section is possible both cost-effectively and within
3651	3651	4 the expenditure limits in subsection (m), such savings
3652	3652	5 goals shall not be reduced. Except as provided in
3653	3653	6 subsection (m) of this Section, annual increases in
3654	3654	7 cumulative persisting annual savings goals during the
3655	3655	8 applicable 4-year plan period shall not be reduced to
3656	3656	9 amounts that are less than the maximum amount of
3657	3657	10 cumulative persisting annual savings that is forecast to
3658	3658	11 be cost-effectively achievable during the 4-year plan
3659	3659	12 period. The Commission shall review any proposed goal
3660	3660	13 reduction as part of its review and approval of the
3661	3661	14 utility's proposed plan.
3662	3662	15 (3) No later than March 1, 2025, each electric utility
3663	3663	16 shall file a 4-year energy efficiency plan commencing on
3664	3664	17 January 1, 2026 that is designed to achieve the
3665	3665	18 incremental annual savings as defined by subsection (b-16)
3666	3666	19 the cumulative persisting annual savings goals specified
3667	3667	20 in paragraphs (9) through (12) of subsection (b-5) of this
3668	3668	21 Section or in paragraphs (9) through (12) of subsection
3669	3669	22 (b-15) of this Section, as applicable, through
3670	3670	23 implementation of energy efficiency measures; however, the
3671	3671	24 goals may be reduced if either (1) clear and convincing
3672	3672	25 evidence demonstrates, through independent analysis, that
3673	3673	26 the expenditure limits in subsection (m) of this Section
3674	3674
3675	3675
3676	3676
3677	3677
3678	3678
3679	3679	SB3637 - 102 - LRB103 38841 CES 68978 b
3680	3680
3681	3681
3682	3682	SB3637- 103 -LRB103 38841 CES 68978 b SB3637 - 103 - LRB103 38841 CES 68978 b
3683	3683	SB3637 - 103 - LRB103 38841 CES 68978 b
3684	3684	1 preclude full achievement of the goals or (2) each of the
3685	3685	2 following conditions are met: (A) the plan's analysis and
3686	3686	3 forecasts of the utility's ability to acquire energy
3687	3687	4 savings demonstrate by clear and convincing evidence and
3688	3688	5 through independent analysis that achievement of such
3689	3689	6 goals is not cost effective; and (B) the amount of energy
3690	3690	7 savings achieved by the utility as determined by the
3691	3691	8 independent evaluator for the most recent year for which
3692	3692	9 savings have been evaluated preceding the plan filing was
3693	3693	10 less than the average annual amount of savings required to
3694	3694	11 achieve the goals for the applicable 4-year plan period.
3695	3695	12 If there is not clear and convincing evidence that
3696	3696	13 achieving the savings goals specified in subsection (b-16)
3697	3697	14 paragraphs (b-5) or (b-15) of this Section is possible
3698	3698	15 both cost-effectively and within the expenditure limits in
3699	3699	16 subsection (m), such savings goals shall not be reduced.
3700	3700	17 Except as provided in subsection (m) of this Section,
3701	3701	18 annual increases in cumulative persisting annual savings
3702	3702	19 goals during the applicable 4-year plan period shall not
3703	3703	20 be reduced to amounts that are less than the maximum
3704	3704	21 amount of cumulative persisting annual savings that is
3705	3705	22 forecast to be cost-effectively achievable during the
3706	3706	23 4-year plan period. The Commission shall review any
3707	3707	24 proposed goal reduction as part of its review and approval
3708	3708	25 of the utility's proposed plan.
3709	3709	26 (4) No later than March 1, 2029, and every 4 years
3710	3710
3711	3711
3712	3712
3713	3713
3714	3714
3715	3715	SB3637 - 103 - LRB103 38841 CES 68978 b
3716	3716
3717	3717
3718	3718	SB3637- 104 -LRB103 38841 CES 68978 b SB3637 - 104 - LRB103 38841 CES 68978 b
3719	3719	SB3637 - 104 - LRB103 38841 CES 68978 b
3720	3720	1 thereafter, each electric utility shall file a 4-year
3721	3721	2 energy efficiency plan commencing on January 1, 2030, and
3722	3722	3 every 4 years thereafter, respectively, that is designed
3723	3723	4 to achieve the incremental annual savings as defined by
3724	3724	5 subsection (b-16) cumulative persisting annual savings
3725	3725	6 goals established by the Illinois Commerce Commission
3726	3726	7 pursuant to direction of subsections (b-5) and (b-15) of
3727	3727	8 this Section, as applicable, through implementation of
3728	3728	9 energy efficiency measures; however, the goals may be
3729	3729	10 reduced if either (1) clear and convincing evidence and
3730	3730	11 independent analysis demonstrates that the expenditure
3731	3731	12 limits in subsection (m) of this Section preclude full
3732	3732	13 achievement of the goals or (2) each of the following
3733	3733	14 conditions are met: (A) the plan's analysis and forecasts
3734	3734	15 of the utility's ability to acquire energy savings
3735	3735	16 demonstrate by clear and convincing evidence and through
3736	3736	17 independent analysis that achievement of such goals is not
3737	3737	18 cost-effective; and (B) the amount of energy savings
3738	3738	19 achieved by the utility as determined by the independent
3739	3739	20 evaluator for the most recent year for which savings have
3740	3740	21 been evaluated preceding the plan filing was less than the
3741	3741	22 average annual amount of savings required to achieve the
3742	3742	23 goals for the applicable 4-year plan period. If there is
3743	3743	24 not clear and convincing evidence that achieving the
3744	3744	25 savings goals specified in paragraphs (b-5) or (b-15) of
3745	3745	26 this Section is possible both cost-effectively and within
3746	3746
3747	3747
3748	3748
3749	3749
3750	3750
3751	3751	SB3637 - 104 - LRB103 38841 CES 68978 b
3752	3752
3753	3753
3754	3754	SB3637- 105 -LRB103 38841 CES 68978 b SB3637 - 105 - LRB103 38841 CES 68978 b
3755	3755	SB3637 - 105 - LRB103 38841 CES 68978 b
3756	3756	1 the expenditure limits in subsection (m), such savings
3757	3757	2 goals shall not be reduced. Except as provided in
3758	3758	3 subsection (m) of this Section, annual increases in
3759	3759	4 cumulative persisting annual savings goals during the
3760	3760	5 applicable 4-year plan period shall not be reduced to
3761	3761	6 amounts that are less than the maximum amount of
3762	3762	7 cumulative persisting annual savings that is forecast to
3763	3763	8 be cost-effectively achievable during the 4-year plan
3764	3764	9 period. The Commission shall review any proposed goal
3765	3765	10 reduction as part of its review and approval of the
3766	3766	11 utility's proposed plan.
3767	3767	12 Each utility's plan shall set forth the utility's
3768	3768	13 proposals to meet the energy efficiency standards identified
3769	3769	14 in subsection (b-5), or (b-15), or (b-16) as applicable and as
3770	3770	15 such standards may have been modified under this subsection
3771	3771	16 (f), taking into account the unique circumstances of the
3772	3772	17 utility's service territory. For those plans commencing on
3773	3773	18 January 1, 2018, the Commission shall seek public comment on
3774	3774	19 the utility's plan and shall issue an order approving or
3775	3775	20 disapproving each plan no later than 105 days after June 1,
3776	3776	21 2017 (the effective date of Public Act 99-906). For those
3777	3777	22 plans commencing after December 31, 2021, the Commission shall
3778	3778	23 seek public comment on the utility's plan and shall issue an
3779	3779	24 order approving or disapproving each plan within 6 months
3780	3780	25 after its submission. If the Commission disapproves a plan,
3781	3781	26 the Commission shall, within 30 days, describe in detail the
3782	3782
3783	3783
3784	3784
3785	3785
3786	3786
3787	3787	SB3637 - 105 - LRB103 38841 CES 68978 b
3788	3788
3789	3789
3790	3790	SB3637- 106 -LRB103 38841 CES 68978 b SB3637 - 106 - LRB103 38841 CES 68978 b
3791	3791	SB3637 - 106 - LRB103 38841 CES 68978 b
3792	3792	1 reasons for the disapproval and describe a path by which the
3793	3793	2 utility may file a revised draft of the plan to address the
3794	3794	3 Commission's concerns satisfactorily. If the utility does not
3795	3795	4 refile with the Commission within 60 days, the utility shall
3796	3796	5 be subject to penalties at a rate of $100,000 per day until the
3797	3797	6 plan is filed. This process shall continue, and penalties
3798	3798	7 shall accrue, until the utility has successfully filed a
3799	3799	8 portfolio of energy efficiency and demand-response measures.
3800	3800	9 Penalties shall be deposited into the Energy Efficiency Trust
3801	3801	10 Fund.
3802	3802	11 (g) In submitting proposed plans and funding levels under
3803	3803	12 subsection (f) of this Section to meet the savings goals
3804	3804	13 identified in subsection (b-5), or (b-15), or (b-16) of this
3805	3805	14 Section, as applicable, the utility shall:
3806	3806	15 (1) Demonstrate that its proposed energy efficiency
3807	3807	16 measures will achieve the applicable requirements that are
3808	3808	17 identified in subsection (b-5), or (b-15), or (b-16) of
3809	3809	18 this Section, as modified by subsection (f) of this
3810	3810	19 Section.
3811	3811	20 (2) (Blank).
3812	3812	21 (2.5) Demonstrate consideration of program options for
3813	3813	22 (A) advancing new building codes, appliance standards, and
3814	3814	23 municipal regulations governing existing and new building
3815	3815	24 efficiency improvements and (B) supporting efforts to
3816	3816	25 improve compliance with new building codes, appliance
3817	3817	26 standards and municipal regulations, as potentially
3818	3818
3819	3819
3820	3820
3821	3821
3822	3822
3823	3823	SB3637 - 106 - LRB103 38841 CES 68978 b
3824	3824
3825	3825
3826	3826	SB3637- 107 -LRB103 38841 CES 68978 b SB3637 - 107 - LRB103 38841 CES 68978 b
3827	3827	SB3637 - 107 - LRB103 38841 CES 68978 b
3828	3828	1 cost-effective means of acquiring energy savings to count
3829	3829	2 toward savings goals.
3830	3830	3 (3) Demonstrate that its overall portfolio of
3831	3831	4 measures, not including low-income programs described in
3832	3832	5 subsection (c) of this Section, is cost-effective using
3833	3833	6 the total resource cost test or complies with paragraphs
3834	3834	7 (1) through (3) of subsection (f) of this Section and
3835	3835	8 represents a diverse cross-section of opportunities for
3836	3836	9 customers of all rate classes, other than those customers
3837	3837	10 described in subsection (l) of this Section, to
3838	3838	11 participate in the programs. Individual measures need not
3839	3839	12 be cost effective.
3840	3840	13 (3.5) Demonstrate that the utility's plan integrates
3841	3841	14 the delivery of energy efficiency programs with natural
3842	3842	15 gas efficiency programs, programs promoting distributed
3843	3843	16 solar, programs promoting demand response and other
3844	3844	17 efforts to address bill payment issues, including, but not
3845	3845	18 limited to, LIHEAP and the Percentage of Income Payment
3846	3846	19 Plan, to the extent such integration is practical and has
3847	3847	20 the potential to enhance customer engagement, minimize
3848	3848	21 market confusion, or reduce administrative costs.
3849	3849	22 (4) Present a third-party energy efficiency
3850	3850	23 implementation program subject to the following
3851	3851	24 requirements:
3852	3852	25 (A) beginning with the year commencing January 1,
3853	3853	26 2019, electric utilities that serve more than
3854	3854
3855	3855
3856	3856
3857	3857
3858	3858
3859	3859	SB3637 - 107 - LRB103 38841 CES 68978 b
3860	3860
3861	3861
3862	3862	SB3637- 108 -LRB103 38841 CES 68978 b SB3637 - 108 - LRB103 38841 CES 68978 b
3863	3863	SB3637 - 108 - LRB103 38841 CES 68978 b
3864	3864	1 3,000,000 retail customers in the State shall fund
3865	3865	2 third-party energy efficiency programs in an amount
3866	3866	3 that is no less than $25,000,000 per year, and
3867	3867	4 electric utilities that serve less than 3,000,000
3868	3868	5 retail customers but more than 500,000 retail
3869	3869	6 customers in the State shall fund third-party energy
3870	3870	7 efficiency programs in an amount that is no less than
3871	3871	8 $8,350,000 per year;
3872	3872	9 (B) during 2018, the utility shall conduct a
3873	3873	10 solicitation process for purposes of requesting
3874	3874	11 proposals from third-party vendors for those
3875	3875	12 third-party energy efficiency programs to be offered
3876	3876	13 during one or more of the years commencing January 1,
3877	3877	14 2019, January 1, 2020, and January 1, 2021; for those
3878	3878	15 multi-year plans commencing on January 1, 2022 and
3879	3879	16 January 1, 2026, the utility shall conduct a
3880	3880	17 solicitation process during 2021 and 2025,
3881	3881	18 respectively, for purposes of requesting proposals
3882	3882	19 from third-party vendors for those third-party energy
3883	3883	20 efficiency programs to be offered during one or more
3884	3884	21 years of the respective multi-year plan period; for
3885	3885	22 each solicitation process, the utility shall identify
3886	3886	23 the sector, technology, or geographical area for which
3887	3887	24 it is seeking requests for proposals; the solicitation
3888	3888	25 process must be either for programs that fill gaps in
3889	3889	26 the utility's program portfolio and for programs that
3890	3890
3891	3891
3892	3892
3893	3893
3894	3894
3895	3895	SB3637 - 108 - LRB103 38841 CES 68978 b
3896	3896
3897	3897
3898	3898	SB3637- 109 -LRB103 38841 CES 68978 b SB3637 - 109 - LRB103 38841 CES 68978 b
3899	3899	SB3637 - 109 - LRB103 38841 CES 68978 b
3900	3900	1 target low-income customers, business sectors,
3901	3901	2 building types, geographies, or other specific parts
3902	3902	3 of its customer base with initiatives that would be
3903	3903	4 more effective at reaching these customer segments
3904	3904	5 than the utilities' programs filed in its energy
3905	3905	6 efficiency plans;
3906	3906	7 (C) the utility shall propose the bidder
3907	3907	8 qualifications, performance measurement process, and
3908	3908	9 contract structure, which must include a performance
3909	3909	10 payment mechanism and general terms and conditions;
3910	3910	11 the proposed qualifications, process, and structure
3911	3911	12 shall be subject to Commission approval; and
3912	3912	13 (D) the utility shall retain an independent third
3913	3913	14 party to score the proposals received through the
3914	3914	15 solicitation process described in this paragraph (4),
3915	3915	16 rank them according to their cost per lifetime
3916	3916	17 kilowatt-hours saved, and assemble the portfolio of
3917	3917	18 third-party programs.
3918	3918	19 The electric utility shall recover all costs
3919	3919	20 associated with Commission-approved, third-party
3920	3920	21 administered programs regardless of the success of those
3921	3921	22 programs.
3922	3922	23 (4.5) Implement cost-effective demand-response
3923	3923	24 measures to reduce peak demand by 0.1% over the prior year
3924	3924	25 for eligible retail customers, as defined in Section
3925	3925	26 16-111.5 of this Act, and for customers that elect hourly
3926	3926
3927	3927
3928	3928
3929	3929
3930	3930
3931	3931	SB3637 - 109 - LRB103 38841 CES 68978 b
3932	3932
3933	3933
3934	3934	SB3637- 110 -LRB103 38841 CES 68978 b SB3637 - 110 - LRB103 38841 CES 68978 b
3935	3935	SB3637 - 110 - LRB103 38841 CES 68978 b
3936	3936	1 service from the utility pursuant to Section 16-107 of
3937	3937	2 this Act, provided those customers have not been declared
3938	3938	3 competitive. This requirement continues until December 31,
3939	3939	4 2026.
3940	3940	5 (5) Include a proposed or revised cost-recovery tariff
3941	3941	6 mechanism, as provided for under subsection (d) of this
3942	3942	7 Section, to fund the proposed energy efficiency and
3943	3943	8 demand-response measures and to ensure the recovery of the
3944	3944	9 prudently and reasonably incurred costs of
3945	3945	10 Commission-approved programs.
3946	3946	11 (6) Provide for an annual independent evaluation of
3947	3947	12 the performance of the cost-effectiveness of the utility's
3948	3948	13 portfolio of measures, as well as a full review of the
3949	3949	14 multi-year plan results of the broader net program impacts
3950	3950	15 and, to the extent practical, for adjustment of the
3951	3951	16 measures on a going-forward basis as a result of the
3952	3952	17 evaluations. The resources dedicated to evaluation shall
3953	3953	18 not exceed 3% of portfolio resources in any given year.
3954	3954	19 (7) For electric utilities that serve more than
3955	3955	20 500,000 3,000,000 retail customers in the State:
3956	3956	21 (A) Through December 31, 2025, provide for an
3957	3957	22 adjustment to the return on equity component of the
3958	3958	23 utility's weighted average cost of capital calculated
3959	3959	24 under subsection (d) of this Section:
3960	3960	25 (i) If the independent evaluator determines
3961	3961	26 that the utility achieved a cumulative persisting
3962	3962
3963	3963
3964	3964
3965	3965
3966	3966
3967	3967	SB3637 - 110 - LRB103 38841 CES 68978 b
3968	3968
3969	3969
3970	3970	SB3637- 111 -LRB103 38841 CES 68978 b SB3637 - 111 - LRB103 38841 CES 68978 b
3971	3971	SB3637 - 111 - LRB103 38841 CES 68978 b
3972	3972	1 annual savings that is less than the applicable
3973	3973	2 annual incremental goal, then the return on equity
3974	3974	3 component shall be reduced by a maximum of 200
3975	3975	4 basis points in the event that the utility
3976	3976	5 achieved no more than 75% of such goal. If the
3977	3977	6 utility achieved more than 75% of the applicable
3978	3978	7 annual incremental goal but less than 100% of such
3979	3979	8 goal, then the return on equity component shall be
3980	3980	9 reduced by 8 basis points for each percent by
3981	3981	10 which the utility failed to achieve the goal.
3982	3982	11 (ii) If the independent evaluator determines
3983	3983	12 that the utility achieved a cumulative persisting
3984	3984	13 annual savings that is more than the applicable
3985	3985	14 annual incremental goal, then the return on equity
3986	3986	15 component shall be increased by a maximum of 200
3987	3987	16 basis points in the event that the utility
3988	3988	17 achieved at least 125% of such goal. If the
3989	3989	18 utility achieved more than 100% of the applicable
3990	3990	19 annual incremental goal but less than 125% of such
3991	3991	20 goal, then the return on equity component shall be
3992	3992	21 increased by 8 basis points for each percent by
3993	3993	22 which the utility achieved above the goal. If the
3994	3994	23 applicable annual incremental goal was reduced
3995	3995	24 under paragraph (1) or (2) of subsection (f) of
3996	3996	25 this Section, then the following adjustments shall
3997	3997	26 be made to the calculations described in this item
3998	3998
3999	3999
4000	4000
4001	4001
4002	4002
4003	4003	SB3637 - 111 - LRB103 38841 CES 68978 b
4004	4004
4005	4005
4006	4006	SB3637- 112 -LRB103 38841 CES 68978 b SB3637 - 112 - LRB103 38841 CES 68978 b
4007	4007	SB3637 - 112 - LRB103 38841 CES 68978 b
4008	4008	1 (ii):
4009	4009	2 (aa) the calculation for determining
4010	4010	3 achievement that is at least 125% of the
4011	4011	4 applicable annual incremental goal shall use
4012	4012	5 the unreduced applicable annual incremental
4013	4013	6 goal to set the value; and
4014	4014	7 (bb) the calculation for determining
4015	4015	8 achievement that is less than 125% but more
4016	4016	9 than 100% of the applicable annual incremental
4017	4017	10 goal shall use the reduced applicable annual
4018	4018	11 incremental goal to set the value for 100%
4019	4019	12 achievement of the goal and shall use the
4020	4020	13 unreduced goal to set the value for 125%
4021	4021	14 achievement. The 8 basis point value shall
4022	4022	15 also be modified, as necessary, so that the
4023	4023	16 200 basis points are evenly apportioned among
4024	4024	17 each percentage point value between 100% and
4025	4025	18 125% achievement.
4026	4026	19 (B) For the period January 1, 2026 through
4027	4027	20 December 31, 2029 and in all subsequent 4-year
4028	4028	21 periods, provide for an adjustment to the return on
4029	4029	22 equity component of the utility's weighted average
4030	4030	23 cost of capital calculated under subsection (d) of
4031	4031	24 this Section:
4032	4032	25 (i) If the incremental annual savings goal
4033	4033	26 specified in subsection (b-16) of this Section is
4034	4034
4035	4035
4036	4036
4037	4037
4038	4038
4039	4039	SB3637 - 112 - LRB103 38841 CES 68978 b
4040	4040
4041	4041
4042	4042	SB3637- 113 -LRB103 38841 CES 68978 b SB3637 - 113 - LRB103 38841 CES 68978 b
4043	4043	SB3637 - 113 - LRB103 38841 CES 68978 b
4044	4044	1 unmodified, and if the independent evaluator
4045	4045	2 determines that the utility achieved lifetime
4046	4046	3 energy savings that is less than the product of
4047	4047	4 the incremental annual savings goal and minimum
4048	4048	5 average savings life specified in subsection
4049	4049	6 (b-16) of this Section, then the return on equity
4050	4050	7 component shall be reduced by a maximum of 200
4051	4051	8 basis points if the utility achieved no more than
4052	4052	9 66% of such lifetime savings goal. If the utility
4053	4053	10 achieved more than 66% but less than 100% of such
4054	4054	11 goal, then the return on equity component shall be
4055	4055	12 reduced by 6 basis points for each percent by
4056	4056	13 which the utility failed to achieve the goal If
4057	4057	14 the independent evaluator determines that the
4058	4058	15 utility achieved a cumulative persisting annual
4059	4059	16 savings that is less than the applicable annual
4060	4060	17 incremental goal, then the return on equity
4061	4061	18 component shall be reduced by a maximum of 200
4062	4062	19 basis points in the event that the utility
4063	4063	20 achieved no more than 66% of such goal. If the
4064	4064	21 utility achieved more than 66% of the applicable
4065	4065	22 annual incremental goal but less than 100% of such
4066	4066	23 goal, then the return on equity component shall be
4067	4067	24 reduced by 6 basis points for each percent by
4068	4068	25 which the utility failed to achieve the goal.
4069	4069	26 (ii) If the incremental annual savings goal
4070	4070
4071	4071
4072	4072
4073	4073
4074	4074
4075	4075	SB3637 - 113 - LRB103 38841 CES 68978 b
4076	4076
4077	4077
4078	4078	SB3637- 114 -LRB103 38841 CES 68978 b SB3637 - 114 - LRB103 38841 CES 68978 b
4079	4079	SB3637 - 114 - LRB103 38841 CES 68978 b
4080	4080	1 specified in subsection(b-16) of this Section is
4081	4081	2 unmodified, and if the independent evaluator
4082	4082	3 determines that the utility achieved lifetime
4083	4083	4 energy savings that is more than the product of
4084	4084	5 the incremental annual savings goal and minimum
4085	4085	6 average savings life specified in subsection
4086	4086	7 (b-16) of this Section, then the return on equity
4087	4087	8 component shall be increased by a maximum of 200
4088	4088	9 basis points if the utility achieved at least 134%
4089	4089	10 of such lifetime savings goal. If the utility
4090	4090	11 achieved more than 100% but less than 134% of such
4091	4091	12 goal, then the return on equity component shall be
4092	4092	13 increased by 6 basis points for each percent by
4093	4093	14 which the utility achieved above the goal. If the
4094	4094	15 independent evaluator determines that the utility
4095	4095	16 achieved a cumulative persisting annual savings
4096	4096	17 that is more than the applicable annual
4097	4097	18 incremental goal, then the return on equity
4098	4098	19 component shall be increased by a maximum of 200
4099	4099	20 basis points in the event that the utility
4100	4100	21 achieved at least 134% of such goal. If the
4101	4101	22 utility achieved more than 100% of the applicable
4102	4102	23 annual incremental goal but less than 134% of such
4103	4103	24 goal, then the return on equity component shall be
4104	4104	25 increased by 6 basis points for each percent by
4105	4105	26 which the utility achieved above the goal. If the
4106	4106
4107	4107
4108	4108
4109	4109
4110	4110
4111	4111	SB3637 - 114 - LRB103 38841 CES 68978 b
4112	4112
4113	4113
4114	4114	SB3637- 115 -LRB103 38841 CES 68978 b SB3637 - 115 - LRB103 38841 CES 68978 b
4115	4115	SB3637 - 115 - LRB103 38841 CES 68978 b
4116	4116	1 applicable annual incremental goal was reduced
4117	4117	2 under paragraph (3) of subsection (f) of this
4118	4118	3 Section, then the following adjustments shall be
4119	4119	4 made to the calculations described in this item
4120	4120	5 (ii):
4121	4121	6 (iii) If the incremental annual savings goal
4122	4122	7 specified in subsection (b-16) of this Section is
4123	4123	8 reduced pursuant to paragraphs (3) or (4) of
4124	4124	9 subsection (f), then the return on equity shall be
4125	4125	10 reduced by 10 basis points for every percent by
4126	4126	11 which the utility fails to achieved the modified
4127	4127	12 goal, up to a maximum of a 200 basis point
4128	4128	13 reduction. (aa) the calculation for determining
4129	4129	14 achievement that is at least 134% of the
4130	4130	15 applicable annual incremental goal shall use the
4131	4131	16 unreduced applicable annual incremental goal to
4132	4132	17 set the value; and
4133	4133	18 (iv) If the incremental annual savings goal
4134	4134	19 specified in subsection (b-16) of this Section is
4135	4135	20 reduced pursuant to paragraphs (3) or (4) of
4136	4136	21 subsection (f), the return on equity component
4137	4137	22 shall be increased by a maximum of 200 basis
4138	4138	23 points if the utility achieved at least 134% of
4139	4139	24 the unmodified lifetime savings goal. If the
4140	4140	25 utility achieved more than 100% of the modified
4141	4141	26 goal but less than 134% of the unmodified goal,
4142	4142
4143	4143
4144	4144
4145	4145
4146	4146
4147	4147	SB3637 - 115 - LRB103 38841 CES 68978 b
4148	4148
4149	4149
4150	4150	SB3637- 116 -LRB103 38841 CES 68978 b SB3637 - 116 - LRB103 38841 CES 68978 b
4151	4151	SB3637 - 116 - LRB103 38841 CES 68978 b
4152	4152	1 then the return on equity component shall be
4153	4153	2 linearly interpolated between 0 increase for just
4154	4154	3 meeting 100% of the modified goal and a 200 basis
4155	4155	4 point increase for achieving 134% of the
4156	4156	5 unmodified goal (bb) the calculation for
4157	4157	6 determining achievement that is less than 134% but
4158	4158	7 more than 100% of the applicable annual
4159	4159	8 incremental goal shall use the reduced applicable
4160	4160	9 annual incremental goal to set the value for 100%
4161	4161	10 achievement of the goal and shall use the
4162	4162	11 unreduced goal to set the value for 134%
4163	4163	12 achievement. The 6 basis point value shall also be
4164	4164	13 modified, as necessary, so that the 200 basis
4165	4165	14 points are evenly apportioned among each
4166	4166	15 percentage point value between 100% and 134%
4167	4167	16 achievement.
4168	4168	17 (C) Notwithstanding the provisions of
4169	4169	18 subparagraphs (A) and (B) of this paragraph (7), if
4170	4170	19 the applicable annual incremental goal for an electric
4171	4171	20 utility is ever less than 0.6% of deemed average
4172	4172	21 weather normalized sales of electric power and energy
4173	4173	22 during calendar years 2014, 2015, and 2016, an
4174	4174	23 adjustment to the return on equity component of the
4175	4175	24 utility's weighted average cost of capital calculated
4176	4176	25 under subsection (d) of this Section shall be made as
4177	4177	26 follows:
4178	4178
4179	4179
4180	4180
4181	4181
4182	4182
4183	4183	SB3637 - 116 - LRB103 38841 CES 68978 b
4184	4184
4185	4185
4186	4186	SB3637- 117 -LRB103 38841 CES 68978 b SB3637 - 117 - LRB103 38841 CES 68978 b
4187	4187	SB3637 - 117 - LRB103 38841 CES 68978 b
4188	4188	1 (i) If the independent evaluator determines
4189	4189	2 that the utility achieved a cumulative persisting
4190	4190	3 annual savings that is less than would have been
4191	4191	4 achieved had the applicable annual incremental
4192	4192	5 goal been achieved, then the return on equity
4193	4193	6 component shall be reduced by a maximum of 200
4194	4194	7 basis points if the utility achieved no more than
4195	4195	8 75% of its applicable annual total savings
4196	4196	9 requirement as defined in paragraph (7.5) of this
4197	4197	10 subsection. If the utility achieved more than 75%
4198	4198	11 of the applicable annual total savings requirement
4199	4199	12 but less than 100% of such goal, then the return on
4200	4200	13 equity component shall be reduced by 8 basis
4201	4201	14 points for each percent by which the utility
4202	4202	15 failed to achieve the goal.
4203	4203	16 (ii) If the independent evaluator determines
4204	4204	17 that the utility achieved a cumulative persisting
4205	4205	18 annual savings that is more than would have been
4206	4206	19 achieved had the applicable annual incremental
4207	4207	20 goal been achieved, then the return on equity
4208	4208	21 component shall be increased by a maximum of 200
4209	4209	22 basis points if the utility achieved at least 125%
4210	4210	23 of its applicable annual total savings
4211	4211	24 requirement. If the utility achieved more than
4212	4212	25 100% of the applicable annual total savings
4213	4213	26 requirement but less than 125% of such goal, then
4214	4214
4215	4215
4216	4216
4217	4217
4218	4218
4219	4219	SB3637 - 117 - LRB103 38841 CES 68978 b
4220	4220
4221	4221
4222	4222	SB3637- 118 -LRB103 38841 CES 68978 b SB3637 - 118 - LRB103 38841 CES 68978 b
4223	4223	SB3637 - 118 - LRB103 38841 CES 68978 b
4224	4224	1 the return on equity component shall be increased
4225	4225	2 by 8 basis points for each percent by which the
4226	4226	3 utility achieved above the applicable annual total
4227	4227	4 savings requirement. If the applicable annual
4228	4228	5 incremental goal was reduced under paragraph (1)
4229	4229	6 or (2) of subsection (f) of this Section, then the
4230	4230	7 following adjustments shall be made to the
4231	4231	8 calculations described in this item (ii):
4232	4232	9 (aa) the calculation for determining
4233	4233	10 achievement that is at least 125% of the
4234	4234	11 applicable annual total savings requirement
4235	4235	12 shall use the unreduced applicable annual
4236	4236	13 incremental goal to set the value; and
4237	4237	14 (bb) the calculation for determining
4238	4238	15 achievement that is less than 125% but more
4239	4239	16 than 100% of the applicable annual total
4240	4240	17 savings requirement shall use the reduced
4241	4241	18 applicable annual incremental goal to set the
4242	4242	19 value for 100% achievement of the goal and
4243	4243	20 shall use the unreduced goal to set the value
4244	4244	21 for 125% achievement. The 8 basis point value
4245	4245	22 shall also be modified, as necessary, so that
4246	4246	23 the 200 basis points are evenly apportioned
4247	4247	24 among each percentage point value between 100%
4248	4248	25 and 125% achievement.
4249	4249	26 (7.5) For purposes of this Section, the term
4250	4250
4251	4251
4252	4252
4253	4253
4254	4254
4255	4255	SB3637 - 118 - LRB103 38841 CES 68978 b
4256	4256
4257	4257
4258	4258	SB3637- 119 -LRB103 38841 CES 68978 b SB3637 - 119 - LRB103 38841 CES 68978 b
4259	4259	SB3637 - 119 - LRB103 38841 CES 68978 b
4260	4260	1 "applicable annual incremental goal" means the difference
4261	4261	2 between the cumulative persisting annual savings goal for
4262	4262	3 the calendar year that is the subject of the independent
4263	4263	4 evaluator's determination and the cumulative persisting
4264	4264	5 annual savings goal for the immediately preceding calendar
4265	4265	6 year, as such goals are defined in subsections (b-5) and
4266	4266	7 (b-15) of this Section and as these goals may have been
4267	4267	8 modified as provided for under subsection (b-20) and
4268	4268	9 paragraphs (1) and (2) through (3) of subsection (f) of
4269	4269	10 this Section. Under subsections (b), (b-5), (b-10), and
4270	4270	11 (b-15) of this Section, a utility must first replace
4271	4271	12 energy savings from measures that have expired before any
4272	4272	13 progress towards achievement of its applicable annual
4273	4273	14 incremental goal may be counted. Savings may expire
4274	4274	15 because measures installed in previous years have reached
4275	4275	16 the end of their lives, because measures installed in
4276	4276	17 previous years are producing lower savings in the current
4277	4277	18 year than in the previous year, or for other reasons
4278	4278	19 identified by independent evaluators. Notwithstanding
4279	4279	20 anything else set forth in this Section, the difference
4280	4280	21 between the actual annual incremental savings achieved in
4281	4281	22 any given year, including the replacement of energy
4282	4282	23 savings that have expired, and the applicable annual
4283	4283	24 incremental goal shall not affect adjustments to the
4284	4284	25 return on equity for subsequent calendar years under this
4285	4285	26 subsection (g).
4286	4286
4287	4287
4288	4288
4289	4289
4290	4290
4291	4291	SB3637 - 119 - LRB103 38841 CES 68978 b
4292	4292
4293	4293
4294	4294	SB3637- 120 -LRB103 38841 CES 68978 b SB3637 - 120 - LRB103 38841 CES 68978 b
4295	4295	SB3637 - 120 - LRB103 38841 CES 68978 b
4296	4296	1 In this Section, "applicable annual total savings
4297	4297	2 requirement" means the total amount of new annual savings
4298	4298	3 that the utility must achieve in any given year to achieve
4299	4299	4 the applicable annual incremental goal. This is equal to
4300	4300	5 the applicable annual incremental goal plus the total new
4301	4301	6 annual savings that are required to replace savings that
4302	4302	7 expired in or at the end of the previous year.
4303	4303	8 (8) (Blank). For electric utilities that serve less
4304	4304	9 than 3,000,000 retail customers but more than 500,000
4305	4305	10 retail customers in the State:
4306	4306	11 (A) Through December 31, 2025, the applicable
4307	4307	12 annual incremental goal shall be compared to the
4308	4308	13 annual incremental savings as determined by the
4309	4309	14 independent evaluator.
4310	4310	15 (i) The return on equity component shall be
4311	4311	16 reduced by 8 basis points for each percent by
4312	4312	17 which the utility did not achieve 84.4% of the
4313	4313	18 applicable annual incremental goal.
4314	4314	19 (ii) The return on equity component shall be
4315	4315	20 increased by 8 basis points for each percent by
4316	4316	21 which the utility exceeded 100% of the applicable
4317	4317	22 annual incremental goal.
4318	4318	23 (iii) The return on equity component shall not
4319	4319	24 be increased or decreased if the annual
4320	4320	25 incremental savings as determined by the
4321	4321	26 independent evaluator is greater than 84.4% of the
4322	4322
4323	4323
4324	4324
4325	4325
4326	4326
4327	4327	SB3637 - 120 - LRB103 38841 CES 68978 b
4328	4328
4329	4329
4330	4330	SB3637- 121 -LRB103 38841 CES 68978 b SB3637 - 121 - LRB103 38841 CES 68978 b
4331	4331	SB3637 - 121 - LRB103 38841 CES 68978 b
4332	4332	1 applicable annual incremental goal and less than
4333	4333	2 100% of the applicable annual incremental goal.
4334	4334	3 (iv) The return on equity component shall not
4335	4335	4 be increased or decreased by an amount greater
4336	4336	5 than 200 basis points pursuant to this
4337	4337	6 subparagraph (A).
4338	4338	7 (B) For the period of January 1, 2026 through
4339	4339	8 December 31, 2029 and in all subsequent 4-year
4340	4340	9 periods, the applicable annual incremental goal shall
4341	4341	10 be compared to the annual incremental savings as
4342	4342	11 determined by the independent evaluator.
4343	4343	12 (i) The return on equity component shall be
4344	4344	13 reduced by 6 basis points for each percent by
4345	4345	14 which the utility did not achieve 100% of the
4346	4346	15 applicable annual incremental goal.
4347	4347	16 (ii) The return on equity component shall be
4348	4348	17 increased by 6 basis points for each percent by
4349	4349	18 which the utility exceeded 100% of the applicable
4350	4350	19 annual incremental goal.
4351	4351	20 (iii) The return on equity component shall not
4352	4352	21 be increased or decreased by an amount greater
4353	4353	22 than 200 basis points pursuant to this
4354	4354	23 subparagraph (B).
4355	4355	24 (C) Notwithstanding provisions in subparagraphs
4356	4356	25 (A) and (B) of paragraph (7) of this subsection, if the
4357	4357	26 applicable annual incremental goal for an electric
4358	4358
4359	4359
4360	4360
4361	4361
4362	4362
4363	4363	SB3637 - 121 - LRB103 38841 CES 68978 b
4364	4364
4365	4365
4366	4366	SB3637- 122 -LRB103 38841 CES 68978 b SB3637 - 122 - LRB103 38841 CES 68978 b
4367	4367	SB3637 - 122 - LRB103 38841 CES 68978 b
4368	4368	1 utility is ever less than 0.6% of deemed average
4369	4369	2 weather normalized sales of electric power and energy
4370	4370	3 during calendar years 2014, 2015 and 2016, an
4371	4371	4 adjustment to the return on equity component of the
4372	4372	5 utility's weighted average cost of capital calculated
4373	4373	6 under subsection (d) of this Section shall be made as
4374	4374	7 follows:
4375	4375	8 (i) The return on equity component shall be
4376	4376	9 reduced by 8 basis points for each percent by
4377	4377	10 which the utility did not achieve 100% of the
4378	4378	11 applicable annual total savings requirement.
4379	4379	12 (ii) The return on equity component shall be
4380	4380	13 increased by 8 basis points for each percent by
4381	4381	14 which the utility exceeded 100% of the applicable
4382	4382	15 annual total savings requirement.
4383	4383	16 (iii) The return on equity component shall not
4384	4384	17 be increased or decreased by an amount greater
4385	4385	18 than 200 basis points pursuant to this
4386	4386	19 subparagraph (C).
4387	4387	20 (D) If the applicable annual incremental goal was
4388	4388	21 reduced under paragraph (1), (2), (3), or (4) of
4389	4389	22 subsection (f) of this Section, then the following
4390	4390	23 adjustments shall be made to the calculations
4391	4391	24 described in subparagraphs (A), (B), and (C) of this
4392	4392	25 paragraph (8):
4393	4393	26 (i) The calculation for determining
4394	4394
4395	4395
4396	4396
4397	4397
4398	4398
4399	4399	SB3637 - 122 - LRB103 38841 CES 68978 b
4400	4400
4401	4401
4402	4402	SB3637- 123 -LRB103 38841 CES 68978 b SB3637 - 123 - LRB103 38841 CES 68978 b
4403	4403	SB3637 - 123 - LRB103 38841 CES 68978 b
4404	4404	1 achievement that is at least 125% or 134%, as
4405	4405	2 applicable, of the applicable annual incremental
4406	4406	3 goal or the applicable annual total savings
4407	4407	4 requirement, as applicable, shall use the
4408	4408	5 unreduced applicable annual incremental goal to
4409	4409	6 set the value.
4410	4410	7 (ii) For the period through December 31, 2025,
4411	4411	8 the calculation for determining achievement that
4412	4412	9 is less than 125% but more than 100% of the
4413	4413	10 applicable annual incremental goal or the
4414	4414	11 applicable annual total savings requirement, as
4415	4415	12 applicable, shall use the reduced applicable
4416	4416	13 annual incremental goal to set the value for 100%
4417	4417	14 achievement of the goal and shall use the
4418	4418	15 unreduced goal to set the value for 125%
4419	4419	16 achievement. The 8 basis point value shall also be
4420	4420	17 modified, as necessary, so that the 200 basis
4421	4421	18 points are evenly apportioned among each
4422	4422	19 percentage point value between 100% and 125%
4423	4423	20 achievement.
4424	4424	21 (iii) For the period of January 1, 2026
4425	4425	22 through December 31, 2029 and all subsequent
4426	4426	23 4-year periods, the calculation for determining
4427	4427	24 achievement that is less than 125% or 134%, as
4428	4428	25 applicable, but more than 100% of the applicable
4429	4429	26 annual incremental goal or the applicable annual
4430	4430
4431	4431
4432	4432
4433	4433
4434	4434
4435	4435	SB3637 - 123 - LRB103 38841 CES 68978 b
4436	4436
4437	4437
4438	4438	SB3637- 124 -LRB103 38841 CES 68978 b SB3637 - 124 - LRB103 38841 CES 68978 b
4439	4439	SB3637 - 124 - LRB103 38841 CES 68978 b
4440	4440	1 total savings requirement, as applicable, shall
4441	4441	2 use the reduced applicable annual incremental goal
4442	4442	3 to set the value for 100% achievement of the goal
4443	4443	4 and shall use the unreduced goal to set the value
4444	4444	5 for 125% achievement. The 6 basis-point value or 8
4445	4445	6 basis-point value, as applicable, shall also be
4446	4446	7 modified, as necessary, so that the 200 basis
4447	4447	8 points are evenly apportioned among each
4448	4448	9 percentage point value between 100% and 125% or
4449	4449	10 between 100% and 134% achievement, as applicable.
4450	4450	11 (9) The utility shall submit the energy savings data
4451	4451	12 to the independent evaluator no later than 30 days after
4452	4452	13 the close of the plan year. The independent evaluator
4453	4453	14 shall determine the cumulative persisting annual savings
4454	4454	15 for a given plan year, as well as an estimate of job
4455	4455	16 impacts and other macroeconomic impacts of the efficiency
4456	4456	17 programs for that year, no later than 120 days after the
4457	4457	18 close of the plan year. The utility shall submit an
4458	4458	19 informational filing to the Commission no later than 160
4459	4459	20 days after the close of the plan year that attaches the
4460	4460	21 independent evaluator's final report identifying the
4461	4461	22 cumulative persisting annual savings for the year and
4462	4462	23 calculates, under paragraph (7) or (8) of this subsection
4463	4463	24 (g), as applicable, any resulting change to the utility's
4464	4464	25 return on equity component of the weighted average cost of
4465	4465	26 capital applicable to the next plan year beginning with
4466	4466
4467	4467
4468	4468
4469	4469
4470	4470
4471	4471	SB3637 - 124 - LRB103 38841 CES 68978 b
4472	4472
4473	4473
4474	4474	SB3637- 125 -LRB103 38841 CES 68978 b SB3637 - 125 - LRB103 38841 CES 68978 b
4475	4475	SB3637 - 125 - LRB103 38841 CES 68978 b
4476	4476	1 the January monthly billing period and extending through
4477	4477	2 the December monthly billing period. However, if the
4478	4478	3 utility recovers the costs incurred under this Section
4479	4479	4 under paragraphs (2) and (3) of subsection (d) of this
4480	4480	5 Section, then the utility shall not be required to submit
4481	4481	6 such informational filing, and shall instead submit the
4482	4482	7 information that would otherwise be included in the
4483	4483	8 informational filing as part of its filing under paragraph
4484	4484	9 (3) of such subsection (d) that is due on or before June 1
4485	4485	10 of each year.
4486	4486	11 For those utilities that must submit the informational
4487	4487	12 filing, the Commission may, on its own motion or by
4488	4488	13 petition, initiate an investigation of such filing,
4489	4489	14 provided, however, that the utility's proposed return on
4490	4490	15 equity calculation shall be deemed the final, approved
4491	4491	16 calculation on December 15 of the year in which it is filed
4492	4492	17 unless the Commission enters an order on or before
4493	4493	18 December 15, after notice and hearing, that modifies such
4494	4494	19 calculation consistent with this Section.
4495	4495	20 The adjustments to the return on equity component
4496	4496	21 described in paragraph paragraphs (7) and (8) of this
4497	4497	22 subsection (g) shall be applied as described in such
4498	4498	23 paragraphs through a separate tariff mechanism, which
4499	4499	24 shall be filed by the utility under subsections (f) and
4500	4500	25 (g) of this Section.
4501	4501	26 (9.5) The utility must demonstrate how it will ensure
4502	4502
4503	4503
4504	4504
4505	4505
4506	4506
4507	4507	SB3637 - 125 - LRB103 38841 CES 68978 b
4508	4508
4509	4509
4510	4510	SB3637- 126 -LRB103 38841 CES 68978 b SB3637 - 126 - LRB103 38841 CES 68978 b
4511	4511	SB3637 - 126 - LRB103 38841 CES 68978 b
4512	4512	1 that program implementation contractors and energy
4513	4513	2 efficiency installation vendors will promote workforce
4514	4514	3 equity and quality jobs.
4515	4515	4 (9.6) Utilities shall collect data necessary to ensure
4516	4516	5 compliance with paragraph (9.5) no less than quarterly and
4517	4517	6 shall communicate progress toward compliance with
4518	4518	7 paragraph (9.5) to program implementation contractors and
4519	4519	8 energy efficiency installation vendors no less than
4520	4520	9 quarterly. Utilities shall work with relevant vendors,
4521	4521	10 providing education, training, and other resources needed
4522	4522	11 to ensure compliance and, where necessary, adjusting or
4523	4523	12 terminating work with vendors that cannot assist with
4524	4524	13 compliance.
4525	4525	14 (10) Utilities required to implement efficiency
4526	4526	15 programs under subsections (b-5), and (b-10), and (b-16)
4527	4527	16 shall report annually to the Illinois Commerce Commission
4528	4528	17 and the General Assembly on how hiring, contracting, job
4529	4529	18 training, and other practices related to its energy
4530	4530	19 efficiency programs enhance the diversity of vendors
4531	4531	20 working on such programs. These reports must include data
4532	4532	21 on vendor and employee diversity, including data on the
4533	4533	22 implementation of paragraphs (9.5) and (9.6). If the
4534	4534	23 utility is not meeting the requirements of paragraphs
4535	4535	24 (9.5) and (9.6), the utility shall submit a plan to adjust
4536	4536	25 their activities so that they meet the requirements of
4537	4537	26 paragraphs (9.5) and (9.6) within the following year.
4538	4538
4539	4539
4540	4540
4541	4541
4542	4542
4543	4543	SB3637 - 126 - LRB103 38841 CES 68978 b
4544	4544
4545	4545
4546	4546	SB3637- 127 -LRB103 38841 CES 68978 b SB3637 - 127 - LRB103 38841 CES 68978 b
4547	4547	SB3637 - 127 - LRB103 38841 CES 68978 b
4548	4548	1 (h) No more than 4% of energy efficiency and
4549	4549	2 demand-response program revenue may be allocated for research,
4550	4550	3 development, or pilot deployment of new equipment or measures.
4551	4551	4 Electric utilities shall work with interested stakeholders to
4552	4552	5 formulate a plan for how these funds should be spent,
4553	4553	6 incorporate statewide approaches for these allocations, and
4554	4554	7 file a 4-year plan that demonstrates that collaboration. If a
4555	4555	8 utility files a request for modified annual energy savings
4556	4556	9 goals with the Commission, then a utility shall forgo spending
4557	4557	10 portfolio dollars on research and development proposals.
4558	4558	11 (i) When practicable, electric utilities shall incorporate
4559	4559	12 advanced metering infrastructure data into the planning,
4560	4560	13 implementation, and evaluation of energy efficiency measures
4561	4561	14 and programs, subject to the data privacy and confidentiality
4562	4562	15 protections of applicable law.
4563	4563	16 (j) The independent evaluator shall follow the guidelines
4564	4564	17 and use the savings set forth in Commission-approved energy
4565	4565	18 efficiency policy manuals and technical reference manuals, as
4566	4566	19 each may be updated from time to time. Until such time as
4567	4567	20 measure life values for energy efficiency measures implemented
4568	4568	21 for low-income households under subsection (c) of this Section
4569	4569	22 are incorporated into such Commission-approved manuals, the
4570	4570	23 low-income measures shall have the same measure life values
4571	4571	24 that are established for same measures implemented in
4572	4572	25 households that are not low-income households.
4573	4573	26 (k) Notwithstanding any provision of law to the contrary,
4574	4574
4575	4575
4576	4576
4577	4577
4578	4578
4579	4579	SB3637 - 127 - LRB103 38841 CES 68978 b
4580	4580
4581	4581
4582	4582	SB3637- 128 -LRB103 38841 CES 68978 b SB3637 - 128 - LRB103 38841 CES 68978 b
4583	4583	SB3637 - 128 - LRB103 38841 CES 68978 b
4584	4584	1 an electric utility subject to the requirements of this
4585	4585	2 Section may file a tariff cancelling an automatic adjustment
4586	4586	3 clause tariff in effect under this Section or Section 8-103,
4587	4587	4 which shall take effect no later than one business day after
4588	4588	5 the date such tariff is filed. Thereafter, the utility shall
4589	4589	6 be authorized to defer and recover its expenditures incurred
4590	4590	7 under this Section through a new tariff authorized under
4591	4591	8 subsection (d) of this Section or in the utility's next rate
4592	4592	9 case under Article IX or Section 16-108.5 of this Act, with
4593	4593	10 interest at an annual rate equal to the utility's weighted
4594	4594	11 average cost of capital as approved by the Commission in such
4595	4595	12 case. If the utility elects to file a new tariff under
4596	4596	13 subsection (d) of this Section, the utility may file the
4597	4597	14 tariff within 10 days after June 1, 2017 (the effective date of
4598	4598	15 Public Act 99-906), and the cost inputs to such tariff shall be
4599	4599	16 based on the projected costs to be incurred by the utility
4600	4600	17 during the calendar year in which the new tariff is filed and
4601	4601	18 that were not recovered under the tariff that was cancelled as
4602	4602	19 provided for in this subsection. Such costs shall include
4603	4603	20 those incurred or to be incurred by the utility under its
4604	4604	21 multi-year plan approved under subsections (f) and (g) of this
4605	4605	22 Section, including, but not limited to, projected capital
4606	4606	23 investment costs and projected regulatory asset balances with
4607	4607	24 correspondingly updated depreciation and amortization reserves
4608	4608	25 and expense. The Commission shall, after notice and hearing,
4609	4609	26 approve, or approve with modification, such tariff and cost
4610	4610
4611	4611
4612	4612
4613	4613
4614	4614
4615	4615	SB3637 - 128 - LRB103 38841 CES 68978 b
4616	4616
4617	4617
4618	4618	SB3637- 129 -LRB103 38841 CES 68978 b SB3637 - 129 - LRB103 38841 CES 68978 b
4619	4619	SB3637 - 129 - LRB103 38841 CES 68978 b
4620	4620	1 inputs no later than 75 days after the utility filed the
4621	4621	2 tariff, provided that such approval, or approval with
4622	4622	3 modification, shall be consistent with the provisions of this
4623	4623	4 Section to the extent they do not conflict with this
4624	4624	5 subsection (k). The tariff approved by the Commission shall
4625	4625	6 take effect no later than 5 days after the Commission enters
4626	4626	7 its order approving the tariff.
4627	4627	8 No later than 60 days after the effective date of the
4628	4628	9 tariff cancelling the utility's automatic adjustment clause
4629	4629	10 tariff, the utility shall file a reconciliation that
4630	4630	11 reconciles the moneys collected under its automatic adjustment
4631	4631	12 clause tariff with the costs incurred during the period
4632	4632	13 beginning June 1, 2016 and ending on the date that the electric
4633	4633	14 utility's automatic adjustment clause tariff was cancelled. In
4634	4634	15 the event the reconciliation reflects an under-collection, the
4635	4635	16 utility shall recover the costs as specified in this
4636	4636	17 subsection (k). If the reconciliation reflects an
4637	4637	18 over-collection, the utility shall apply the amount of such
4638	4638	19 over-collection as a one-time credit to retail customers'
4639	4639	20 bills.
4640	4640	21 (l) (Blank). For the calendar years covered by a
4641	4641	22 multi-year plan commencing after December 31, 2017,
4642	4642	23 subsections (a) through (j) of this Section do not apply to
4643	4643	24 eligible large private energy customers that have chosen to
4644	4644	25 opt out of multi-year plans consistent with this subsection
4645	4645	26 (1).
4646	4646
4647	4647
4648	4648
4649	4649
4650	4650
4651	4651	SB3637 - 129 - LRB103 38841 CES 68978 b
4652	4652
4653	4653
4654	4654	SB3637- 130 -LRB103 38841 CES 68978 b SB3637 - 130 - LRB103 38841 CES 68978 b
4655	4655	SB3637 - 130 - LRB103 38841 CES 68978 b
4656	4656	1 (1) For purposes of this subsection (l), "eligible
4657	4657	2 large private energy customer" means any retail customers,
4658	4658	3 except for federal, State, municipal, and other public
4659	4659	4 customers, of an electric utility that serves more than
4660	4660	5 3,000,000 retail customers, except for federal, State,
4661	4661	6 municipal and other public customers, in the State and
4662	4662	7 whose total highest 30 minute demand was more than 10,000
4663	4663	8 kilowatts, or any retail customers of an electric utility
4664	4664	9 that serves less than 3,000,000 retail customers but more
4665	4665	10 than 500,000 retail customers in the State and whose total
4666	4666	11 highest 15 minute demand was more than 10,000 kilowatts.
4667	4667	12 For purposes of this subsection (l), "retail customer" has
4668	4668	13 the meaning set forth in Section 16-102 of this Act.
4669	4669	14 However, for a business entity with multiple sites located
4670	4670	15 in the State, where at least one of those sites qualifies
4671	4671	16 as an eligible large private energy customer, then any of
4672	4672	17 that business entity's sites, properly identified on a
4673	4673	18 form for notice, shall be considered eligible large
4674	4674	19 private energy customers for the purposes of this
4675	4675	20 subsection (l). A determination of whether this subsection
4676	4676	21 is applicable to a customer shall be made for each
4677	4677	22 multi-year plan beginning after December 31, 2017. The
4678	4678	23 criteria for determining whether this subsection (l) is
4679	4679	24 applicable to a retail customer shall be based on the 12
4680	4680	25 consecutive billing periods prior to the start of the
4681	4681	26 first year of each such multi-year plan.
4682	4682
4683	4683
4684	4684
4685	4685
4686	4686
4687	4687	SB3637 - 130 - LRB103 38841 CES 68978 b
4688	4688
4689	4689
4690	4690	SB3637- 131 -LRB103 38841 CES 68978 b SB3637 - 131 - LRB103 38841 CES 68978 b
4691	4691	SB3637 - 131 - LRB103 38841 CES 68978 b
4692	4692	1 (2) Within 45 days after September 15, 2021 (the
4693	4693	2 effective date of Public Act 102-662), the Commission
4694	4694	3 shall prescribe the form for notice required for opting
4695	4695	4 out of energy efficiency programs. The notice must be
4696	4696	5 submitted to the retail electric utility 12 months before
4697	4697	6 the next energy efficiency planning cycle. However, within
4698	4698	7 120 days after the Commission's initial issuance of the
4699	4699	8 form for notice, eligible large private energy customers
4700	4700	9 may submit a form for notice to an electric utility. The
4701	4701	10 form for notice for opting out of energy efficiency
4702	4702	11 programs shall include all of the following:
4703	4703	12 (A) a statement indicating that the customer has
4704	4704	13 elected to opt out;
4705	4705	14 (B) the account numbers for the customer accounts
4706	4706	15 to which the opt out shall apply;
4707	4707	16 (C) the mailing address associated with the
4708	4708	17 customer accounts identified under subparagraph (B);
4709	4709	18 (D) an American Society of Heating, Refrigerating,
4710	4710	19 and Air-Conditioning Engineers (ASHRAE) level 2 or
4711	4711	20 higher audit report conducted by an independent
4712	4712	21 third-party expert identifying cost-effective energy
4713	4713	22 efficiency project opportunities that could be
4714	4714	23 invested in over the next 10 years. A retail customer
4715	4715	24 with specialized processes may utilize a self-audit
4716	4716	25 process in lieu of the ASHRAE audit;
4717	4717	26 (E) a description of the customer's plans to
4718	4718
4719	4719
4720	4720
4721	4721
4722	4722
4723	4723	SB3637 - 131 - LRB103 38841 CES 68978 b
4724	4724
4725	4725
4726	4726	SB3637- 132 -LRB103 38841 CES 68978 b SB3637 - 132 - LRB103 38841 CES 68978 b
4727	4727	SB3637 - 132 - LRB103 38841 CES 68978 b
4728	4728	1 reallocate the funds toward internal energy efficiency
4729	4729	2 efforts identified in the subparagraph (D) report,
4730	4730	3 including, but not limited to: (i) strategic energy
4731	4731	4 management or other programs, including descriptions
4732	4732	5 of targeted buildings, equipment and operations; (ii)
4733	4733	6 eligible energy efficiency measures; and (iii)
4734	4734	7 expected energy savings, itemized by technology. If
4735	4735	8 the subparagraph (D) audit report identifies that the
4736	4736	9 customer currently utilizes the best available energy
4737	4737	10 efficient technology, equipment, programs, and
4738	4738	11 operations, the customer may provide a statement that
4739	4739	12 more efficient technology, equipment, programs, and
4740	4740	13 operations are not reasonably available as a means of
4741	4741	14 satisfying this subparagraph (E); and
4742	4742	15 (F) the effective date of the opt out, which will
4743	4743	16 be the next January 1 following notice of the opt out.
4744	4744	17 (3) Upon receipt of a properly and timely noticed
4745	4745	18 request for opt out submitted by an eligible large private
4746	4746	19 energy customer, the retail electric utility shall grant
4747	4747	20 the request, file the request with the Commission and,
4748	4748	21 beginning January 1 of the following year, the opted out
4749	4749	22 customer shall no longer be assessed the costs of the plan
4750	4750	23 and shall be prohibited from participating in that 4-year
4751	4751	24 plan cycle to give the retail utility the certainty to
4752	4752	25 design program plan proposals.
4753	4753	26 (4) Upon a customer's election to opt out under
4754	4754
4755	4755
4756	4756
4757	4757
4758	4758
4759	4759	SB3637 - 132 - LRB103 38841 CES 68978 b
4760	4760
4761	4761
4762	4762	SB3637- 133 -LRB103 38841 CES 68978 b SB3637 - 133 - LRB103 38841 CES 68978 b
4763	4763	SB3637 - 133 - LRB103 38841 CES 68978 b
4764	4764	1 paragraphs (1) and (2) of this subsection (l) and
4765	4765	2 commencing on the effective date of said opt out, the
4766	4766	3 account properly identified in the customer's notice under
4767	4767	4 paragraph (2) shall not be subject to any cost recovery
4768	4768	5 and shall not be eligible to participate in, or directly
4769	4769	6 benefit from, compliance with energy efficiency cumulative
4770	4770	7 persisting savings requirements under subsections (a)
4771	4771	8 through (j).
4772	4772	9 (5) A utility's cumulative persisting annual savings
4773	4773	10 targets will exclude any opted out load.
4774	4774	11 (6) The request to opt out is only valid for the
4775	4775	12 requested plan cycle. An eligible large private energy
4776	4776	13 customer must also request to opt out for future energy
4777	4777	14 plan cycles, otherwise the customer will be included in
4778	4778	15 the future energy plan cycle.
4779	4779	16 (m) Notwithstanding the requirements of this Section, as
4780	4780	17 part of a proceeding to approve a multi-year plan under
4781	4781	18 subsections (f) and (g) of this Section if the multi-year plan
4782	4782	19 has been designed to maximize savings, but does not meet the
4783	4783	20 cost cap limitations of this Section, the Commission shall
4784	4784	21 reduce the amount of energy efficiency measures implemented
4785	4785	22 for any single year, and whose costs are recovered under
4786	4786	23 subsection (d) of this Section, by an amount necessary to
4787	4787	24 limit the estimated average net increase due to the cost of the
4788	4788	25 measures to no more than
4789	4789	26 (1) 3.5% for each of the 4 years beginning January 1,
4790	4790
4791	4791
4792	4792
4793	4793
4794	4794
4795	4795	SB3637 - 133 - LRB103 38841 CES 68978 b
4796	4796
4797	4797
4798	4798	SB3637- 134 -LRB103 38841 CES 68978 b SB3637 - 134 - LRB103 38841 CES 68978 b
4799	4799	SB3637 - 134 - LRB103 38841 CES 68978 b
4800	4800	1 2018,
4801	4801	2 (2) (blank),
4802	4802	3 (3) 4% for each of the 4 years beginning January 1,
4803	4803	4 2022,
4804	4804	5 (4) 4.25% for the 4 years beginning January 1, 2026,
4805	4805	6 and
4806	4806	7 (5) 4.25% plus an increase sufficient to account for
4807	4807	8 the rate of inflation between January 1, 2026 and January
4808	4808	9 1 of the first year of each subsequent 4-year plan cycle,
4809	4809	10 of the average amount paid per kilowatthour by residential
4810	4810	11 eligible retail customers during calendar year 2015. An
4811	4811	12 electric utility may plan to spend up to 10% more in any year
4812	4812	13 during an applicable multi-year plan period to
4813	4813	14 cost-effectively achieve additional savings so long as the
4814	4814	15 average over the applicable multi-year plan period does not
4815	4815	16 exceed the percentages defined in items (1) through (5). To
4816	4816	17 determine the total amount that may be spent by an electric
4817	4817	18 utility in any single year, the applicable percentage of the
4818	4818	19 average amount paid per kilowatthour shall be multiplied by
4819	4819	20 the total amount of energy delivered by such electric utility
4820	4820	21 in the calendar year 2015, adjusted to reflect the proportion
4821	4821	22 of the utility's load attributable to customers that have
4822	4822	23 opted out of subsections (a) through (j) of this Section under
4823	4823	24 subsection (l) of this Section. For purposes of this
4824	4824	25 subsection (m), the amount paid per kilowatthour includes,
4825	4825	26 without limitation, estimated amounts paid for supply,
4826	4826
4827	4827
4828	4828
4829	4829
4830	4830
4831	4831	SB3637 - 134 - LRB103 38841 CES 68978 b
4832	4832
4833	4833
4834	4834	SB3637- 135 -LRB103 38841 CES 68978 b SB3637 - 135 - LRB103 38841 CES 68978 b
4835	4835	SB3637 - 135 - LRB103 38841 CES 68978 b
4836	4836	1 transmission, distribution, surcharges, and add-on taxes. For
4837	4837	2 purposes of this Section, "eligible retail customers" shall
4838	4838	3 have the meaning set forth in Section 16-111.5 of this Act.
4839	4839	4 Once the Commission has approved a plan under subsections (f)
4840	4840	5 and (g) of this Section, no subsequent rate impact
4841	4841	6 determinations shall be made.
4842	4842	7 (n) A utility shall take advantage of the efficiencies
4843	4843	8 available through existing Illinois Home Weatherization
4844	4844	9 Assistance Program infrastructure and services, such as
4845	4845	10 enrollment, marketing, quality assurance and implementation,
4846	4846	11 which can reduce the need for similar services at a lower cost
4847	4847	12 than utility-only programs, subject to capacity constraints at
4848	4848	13 community action agencies, for both single-family and
4849	4849	14 multifamily weatherization services, to the extent Illinois
4850	4850	15 Home Weatherization Assistance Program community action
4851	4851	16 agencies provide multifamily services. A utility's plan shall
4852	4852	17 demonstrate that in formulating annual weatherization budgets,
4853	4853	18 it has sought input and coordination with community action
4854	4854	19 agencies regarding agencies' capacity to expand and maximize
4855	4855	20 Illinois Home Weatherization Assistance Program delivery using
4856	4856	21 the ratepayer dollars collected under this Section.
4857	4857	22 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-30-23.)
4858	4858	23 (220 ILCS 5/16-107.5)
4859	4859	24 Sec. 16-107.5. Net electricity metering.
4860	4860	25 (a) The General Assembly finds and declares that a program
4861	4861
4862	4862
4863	4863
4864	4864
4865	4865
4866	4866	SB3637 - 135 - LRB103 38841 CES 68978 b
4867	4867
4868	4868
4869	4869	SB3637- 136 -LRB103 38841 CES 68978 b SB3637 - 136 - LRB103 38841 CES 68978 b
4870	4870	SB3637 - 136 - LRB103 38841 CES 68978 b
4871	4871	1 to provide net electricity metering, as defined in this
4872	4872	2 Section, for eligible customers can encourage private
4873	4873	3 investment in renewable energy resources, stimulate economic
4874	4874	4 growth, enhance the continued diversification of Illinois'
4875	4875	5 energy resource mix, and protect the Illinois environment.
4876	4876	6 Further, to achieve the goals of this Act that robust options
4877	4877	7 for customer-site distributed generation continue to thrive in
4878	4878	8 Illinois, the General Assembly finds that a predictable
4879	4879	9 transition must be ensured for customers between full net
4880	4880	10 metering at the retail electricity rate to the distribution
4881	4881	11 generation rebate described in Section 16-107.6.
4882	4882	12 (b) As used in this Section, (i) "community renewable
4883	4883	13 generation project" shall have the meaning set forth in
4884	4884	14 Section 1-10 of the Illinois Power Agency Act; (ii) "eligible
4885	4885	15 customer" means a retail customer that owns, hosts, or
4886	4886	16 operates, including any third-party owned systems, a solar,
4887	4887	17 wind, or other eligible renewable electrical generating
4888	4888	18 facility that is located on the customer's premises or
4889	4889	19 customer's side of the billing meter and is intended primarily
4890	4890	20 to offset the customer's own current or future electrical
4891	4891	21 requirements; (iii) "electricity provider" means an electric
4892	4892	22 utility or alternative retail electric supplier; (iv)
4893	4893	23 "eligible renewable electrical generating facility" means a
4894	4894	24 generator, which may include the co-location of an energy
4895	4895	25 storage system, that is interconnected under rules adopted by
4896	4896	26 the Commission and is powered by solar electric energy, wind,
4897	4897
4898	4898
4899	4899
4900	4900
4901	4901
4902	4902	SB3637 - 136 - LRB103 38841 CES 68978 b
4903	4903
4904	4904
4905	4905	SB3637- 137 -LRB103 38841 CES 68978 b SB3637 - 137 - LRB103 38841 CES 68978 b
4906	4906	SB3637 - 137 - LRB103 38841 CES 68978 b
4907	4907	1 dedicated crops grown for electricity generation, agricultural
4908	4908	2 residues, untreated and unadulterated wood waste, livestock
4909	4909	3 manure, anaerobic digestion of livestock or food processing
4910	4910	4 waste, fuel cells or microturbines powered by renewable fuels,
4911	4911	5 or hydroelectric energy; (v) "net electricity metering" (or
4912	4912	6 "net metering") means the measurement, during the billing
4913	4913	7 period applicable to an eligible customer, of the net amount
4914	4914	8 of electricity supplied by an electricity provider to the
4915	4915	9 customer or provided to the electricity provider by the
4916	4916	10 customer or subscriber; (vi) "subscriber" shall have the
4917	4917	11 meaning as set forth in Section 1-10 of the Illinois Power
4918	4918	12 Agency Act; (vii) "subscription" shall have the meaning set
4919	4919	13 forth in Section 1-10 of the Illinois Power Agency Act; (viii)
4920	4920	14 "energy storage system" means commercially available
4921	4921	15 technology that is capable of absorbing energy and storing it
4922	4922	16 for a period of time for use at a later time, including, but
4923	4923	17 not limited to, electrochemical, thermal, and
4924	4924	18 electromechanical technologies, and may be interconnected
4925	4925	19 behind the customer's meter or interconnected behind its own
4926	4926	20 meter; and (ix) "future electrical requirements" means modeled
4927	4927	21 electrical requirements upon occupation of a new or vacant
4928	4928	22 property, and other reasonable expectations of future
4929	4929	23 electrical use, as well as, for occupied properties, a
4930	4930	24 reasonable approximation of the annual load of 2 electric
4931	4931	25 vehicles and, for non-electric heating customers, a reasonable
4932	4932	26 approximation of the incremental electric load associated with
4933	4933
4934	4934
4935	4935
4936	4936
4937	4937
4938	4938	SB3637 - 137 - LRB103 38841 CES 68978 b
4939	4939
4940	4940
4941	4941	SB3637- 138 -LRB103 38841 CES 68978 b SB3637 - 138 - LRB103 38841 CES 68978 b
4942	4942	SB3637 - 138 - LRB103 38841 CES 68978 b
4943	4943	1 fuel switching. The approximations shall be applied to the
4944	4944	2 appropriate net metering tariff and do not need to be unique to
4945	4945	3 each individual eligible customer. The utility shall submit
4946	4946	4 these approximations to the Commission for review,
4947	4947	5 modification, and approval; and (x) "electricity provider" and
4948	4948	6 "electric utility" includes municipalities and municipal power
4949	4949	7 agencies as defined in Section 11-119.3-1 of the Illinois
4950	4950	8 Municipal Code and electric cooperatives as defined in Section
4951	4951	9 3-119 of this Act.
4952	4952	10 (c) A net metering facility shall be equipped with
4953	4953	11 metering equipment that can measure the flow of electricity in
4954	4954	12 both directions at the same rate.
4955	4955	13 (1) For eligible customers whose electric service has
4956	4956	14 not been declared competitive pursuant to Section 16-113
4957	4957	15 of this Act as of July 1, 2011 and whose electric delivery
4958	4958	16 service is provided and measured on a kilowatt-hour basis
4959	4959	17 and electric supply service is not provided based on
4960	4960	18 hourly pricing, this shall typically be accomplished
4961	4961	19 through use of a single, bi-directional meter. If the
4962	4962	20 eligible customer's existing electric revenue meter does
4963	4963	21 not meet this requirement, the electricity provider shall
4964	4964	22 arrange for the local electric utility or a meter service
4965	4965	23 provider to install and maintain a new revenue meter at
4966	4966	24 the electricity provider's expense, which may be the smart
4967	4967	25 meter described by subsection (b) of Section 16-108.5 of
4968	4968	26 this Act.
4969	4969
4970	4970
4971	4971
4972	4972
4973	4973
4974	4974	SB3637 - 138 - LRB103 38841 CES 68978 b
4975	4975
4976	4976
4977	4977	SB3637- 139 -LRB103 38841 CES 68978 b SB3637 - 139 - LRB103 38841 CES 68978 b
4978	4978	SB3637 - 139 - LRB103 38841 CES 68978 b
4979	4979	1 (2) For eligible customers whose electric service has
4980	4980	2 not been declared competitive pursuant to Section 16-113
4981	4981	3 of this Act as of July 1, 2011 and whose electric delivery
4982	4982	4 service is provided and measured on a kilowatt demand
4983	4983	5 basis and electric supply service is not provided based on
4984	4984	6 hourly pricing, this shall typically be accomplished
4985	4985	7 through use of a dual channel meter capable of measuring
4986	4986	8 the flow of electricity both into and out of the
4987	4987	9 customer's facility at the same rate and ratio. If such
4988	4988	10 customer's existing electric revenue meter does not meet
4989	4989	11 this requirement, then the electricity provider shall
4990	4990	12 arrange for the local electric utility or a meter service
4991	4991	13 provider to install and maintain a new revenue meter at
4992	4992	14 the electricity provider's expense, which may be the smart
4993	4993	15 meter described by subsection (b) of Section 16-108.5 of
4994	4994	16 this Act.
4995	4995	17 (3) For all other eligible customers, until such time
4996	4996	18 as the local electric utility installs a smart meter, as
4997	4997	19 described by subsection (b) of Section 16-108.5 of this
4998	4998	20 Act, the electricity provider may arrange for the local
4999	4999	21 electric utility or a meter service provider to install
5000	5000	22 and maintain metering equipment capable of measuring the
5001	5001	23 flow of electricity both into and out of the customer's
5002	5002	24 facility at the same rate and ratio, typically through the
5003	5003	25 use of a dual channel meter. If the eligible customer's
5004	5004	26 existing electric revenue meter does not meet this
5005	5005
5006	5006
5007	5007
5008	5008
5009	5009
5010	5010	SB3637 - 139 - LRB103 38841 CES 68978 b
5011	5011
5012	5012
5013	5013	SB3637- 140 -LRB103 38841 CES 68978 b SB3637 - 140 - LRB103 38841 CES 68978 b
5014	5014	SB3637 - 140 - LRB103 38841 CES 68978 b
5015	5015	1 requirement, then the costs of installing such equipment
5016	5016	2 shall be paid for by the customer.
5017	5017	3 (d) An electricity provider shall measure and charge or
5018	5018	4 credit for the net electricity supplied to eligible customers
5019	5019	5 or provided by eligible customers whose electric service has
5020	5020	6 not been declared competitive pursuant to Section 16-113 of
5021	5021	7 this Act as of July 1, 2011 and whose electric delivery service
5022	5022	8 is provided and measured on a kilowatt-hour basis and electric
5023	5023	9 supply service is not provided based on hourly pricing in the
5024	5024	10 following manner:
5025	5025	11 (1) If the amount of electricity used by the customer
5026	5026	12 during the billing period exceeds the amount of
5027	5027	13 electricity produced by the customer, the electricity
5028	5028	14 provider shall charge the customer for the net electricity
5029	5029	15 supplied to and used by the customer as provided in
5030	5030	16 subsection (e-5) of this Section.
5031	5031	17 (2) If the amount of electricity produced by a
5032	5032	18 customer during the billing period exceeds the amount of
5033	5033	19 electricity used by the customer during that billing
5034	5034	20 period, the electricity provider supplying that customer
5035	5035	21 shall apply a 1:1 kilowatt-hour credit to a subsequent
5036	5036	22 bill for service to the customer for the net electricity
5037	5037	23 supplied to the electricity provider. The electricity
5038	5038	24 provider shall continue to carry over any excess
5039	5039	25 kilowatt-hour credits earned and apply those credits to
5040	5040	26 subsequent billing periods to offset any
5041	5041
5042	5042
5043	5043
5044	5044
5045	5045
5046	5046	SB3637 - 140 - LRB103 38841 CES 68978 b
5047	5047
5048	5048
5049	5049	SB3637- 141 -LRB103 38841 CES 68978 b SB3637 - 141 - LRB103 38841 CES 68978 b
5050	5050	SB3637 - 141 - LRB103 38841 CES 68978 b
5051	5051	1 customer-generator consumption in those billing periods
5052	5052	2 until all credits are used or until the end of the
5053	5053	3 annualized period.
5054	5054	4 (3) At the end of the year or annualized over the
5055	5055	5 period that service is supplied by means of net metering,
5056	5056	6 or in the event that the retail customer terminates
5057	5057	7 service with the electricity provider prior to the end of
5058	5058	8 the year or the annualized period, any remaining credits
5059	5059	9 in the customer's account shall expire.
5060	5060	10 (d-5) An electricity provider shall measure and charge or
5061	5061	11 credit for the net electricity supplied to eligible customers
5062	5062	12 or provided by eligible customers whose electric service has
5063	5063	13 not been declared competitive pursuant to Section 16-113 of
5064	5064	14 this Act as of July 1, 2011 and whose electric delivery service
5065	5065	15 is provided and measured on a kilowatt-hour basis and electric
5066	5066	16 supply service is provided based on hourly pricing or
5067	5067	17 time-of-use rates in the following manner:
5068	5068	18 (1) If the amount of electricity used by the customer
5069	5069	19 during any hourly period or time-of-use period exceeds the
5070	5070	20 amount of electricity produced by the customer, the
5071	5071	21 electricity provider shall charge the customer for the net
5072	5072	22 electricity supplied to and used by the customer according
5073	5073	23 to the terms of the contract or tariff to which the same
5074	5074	24 customer would be assigned to or be eligible for if the
5075	5075	25 customer was not a net metering customer.
5076	5076	26 (2) If the amount of electricity produced by a
5077	5077
5078	5078
5079	5079
5080	5080
5081	5081
5082	5082	SB3637 - 141 - LRB103 38841 CES 68978 b
5083	5083
5084	5084
5085	5085	SB3637- 142 -LRB103 38841 CES 68978 b SB3637 - 142 - LRB103 38841 CES 68978 b
5086	5086	SB3637 - 142 - LRB103 38841 CES 68978 b
5087	5087	1 customer during any hourly period or time-of-use period
5088	5088	2 exceeds the amount of electricity used by the customer
5089	5089	3 during that hourly period or time-of-use period, the
5090	5090	4 energy provider shall apply a credit for the net
5091	5091	5 kilowatt-hours produced in such period. The credit shall
5092	5092	6 consist of an energy credit and a delivery service credit.
5093	5093	7 The energy credit shall be valued at the same price per
5094	5094	8 kilowatt-hour as the electric service provider would
5095	5095	9 charge for kilowatt-hour energy sales during that same
5096	5096	10 hourly period or time-of-use period. The delivery credit
5097	5097	11 shall be equal to the net kilowatt-hours produced in such
5098	5098	12 hourly period or time-of-use period times a credit that
5099	5099	13 reflects all kilowatt-hour based charges in the customer's
5100	5100	14 electric service rate, excluding energy charges.
5101	5101	15 (e) An electricity provider shall measure and charge or
5102	5102	16 credit for the net electricity supplied to eligible customers
5103	5103	17 whose electric service has not been declared competitive
5104	5104	18 pursuant to Section 16-113 of this Act as of July 1, 2011 and
5105	5105	19 whose electric delivery service is provided and measured on a
5106	5106	20 kilowatt demand basis and electric supply service is not
5107	5107	21 provided based on hourly pricing in the following manner:
5108	5108	22 (1) If the amount of electricity used by the customer
5109	5109	23 during the billing period exceeds the amount of
5110	5110	24 electricity produced by the customer, then the electricity
5111	5111	25 provider shall charge the customer for the net electricity
5112	5112	26 supplied to and used by the customer as provided in
5113	5113
5114	5114
5115	5115
5116	5116
5117	5117
5118	5118	SB3637 - 142 - LRB103 38841 CES 68978 b
5119	5119
5120	5120
5121	5121	SB3637- 143 -LRB103 38841 CES 68978 b SB3637 - 143 - LRB103 38841 CES 68978 b
5122	5122	SB3637 - 143 - LRB103 38841 CES 68978 b
5123	5123	1 subsection (e-5) of this Section. The customer shall
5124	5124	2 remain responsible for all taxes, fees, and utility
5125	5125	3 delivery charges that would otherwise be applicable to the
5126	5126	4 net amount of electricity used by the customer.
5127	5127	5 (2) If the amount of electricity produced by a
5128	5128	6 customer during the billing period exceeds the amount of
5129	5129	7 electricity used by the customer during that billing
5130	5130	8 period, then the electricity provider supplying that
5131	5131	9 customer shall apply a 1:1 kilowatt-hour credit that
5132	5132	10 reflects the kilowatt-hour based charges in the customer's
5133	5133	11 electric service rate to a subsequent bill for service to
5134	5134	12 the customer for the net electricity supplied to the
5135	5135	13 electricity provider. The electricity provider shall
5136	5136	14 continue to carry over any excess kilowatt-hour credits
5137	5137	15 earned and apply those credits to subsequent billing
5138	5138	16 periods to offset any customer-generator consumption in
5139	5139	17 those billing periods until all credits are used or until
5140	5140	18 the end of the annualized period.
5141	5141	19 (3) At the end of the year or annualized over the
5142	5142	20 period that service is supplied by means of net metering,
5143	5143	21 or in the event that the retail customer terminates
5144	5144	22 service with the electricity provider prior to the end of
5145	5145	23 the year or the annualized period, any remaining credits
5146	5146	24 in the customer's account shall expire.
5147	5147	25 (e-5) An electricity provider shall provide electric
5148	5148	26 service to eligible customers who utilize net metering at
5149	5149
5150	5150
5151	5151
5152	5152
5153	5153
5154	5154	SB3637 - 143 - LRB103 38841 CES 68978 b
5155	5155
5156	5156
5157	5157	SB3637- 144 -LRB103 38841 CES 68978 b SB3637 - 144 - LRB103 38841 CES 68978 b
5158	5158	SB3637 - 144 - LRB103 38841 CES 68978 b
5159	5159	1 non-discriminatory rates that are identical, with respect to
5160	5160	2 rate structure, retail rate components, and any monthly
5161	5161	3 charges, to the rates that the customer would be charged if not
5162	5162	4 a net metering customer. An electricity provider shall not
5163	5163	5 charge net metering customers any fee or charge or require
5164	5164	6 additional equipment, insurance, or any other requirements not
5165	5165	7 specifically authorized by interconnection standards
5166	5166	8 authorized by the Commission, unless the fee, charge, or other
5167	5167	9 requirement would apply to other similarly situated customers
5168	5168	10 who are not net metering customers. The customer will remain
5169	5169	11 responsible for all taxes, fees, and utility delivery charges
5170	5170	12 that would otherwise be applicable to the net amount of
5171	5171	13 electricity used by the customer. Subsections (c) through (e)
5172	5172	14 of this Section shall not be construed to prevent an
5173	5173	15 arms-length agreement between an electricity provider and an
5174	5174	16 eligible customer that sets forth different prices, terms, and
5175	5175	17 conditions for the provision of net metering service,
5176	5176	18 including, but not limited to, the provision of the
5177	5177	19 appropriate metering equipment for non-residential customers.
5178	5178	20 (f) Notwithstanding the requirements of subsections (c)
5179	5179	21 through (e-5) of this Section, an electricity provider must
5180	5180	22 require dual-channel metering for customers operating eligible
5181	5181	23 renewable electrical generating facilities to whom the
5182	5182	24 provisions of neither subsection (d), (d-5), nor (e) of this
5183	5183	25 Section apply. In such cases, electricity charges and credits
5184	5184	26 shall be determined as follows:
5185	5185
5186	5186
5187	5187
5188	5188
5189	5189
5190	5190	SB3637 - 144 - LRB103 38841 CES 68978 b
5191	5191
5192	5192
5193	5193	SB3637- 145 -LRB103 38841 CES 68978 b SB3637 - 145 - LRB103 38841 CES 68978 b
5194	5194	SB3637 - 145 - LRB103 38841 CES 68978 b
5195	5195	1 (1) The electricity provider shall assess and the
5196	5196	2 customer remains responsible for all taxes, fees, and
5197	5197	3 utility delivery charges that would otherwise be
5198	5198	4 applicable to the gross amount of kilowatt-hours supplied
5199	5199	5 to the eligible customer by the electricity provider.
5200	5200	6 (2) Each month that service is supplied by means of
5201	5201	7 dual-channel metering, the electricity provider shall
5202	5202	8 compensate the eligible customer for any excess
5203	5203	9 kilowatt-hour credits at the electricity provider's
5204	5204	10 avoided cost of electricity supply over the monthly period
5205	5205	11 or as otherwise specified by the terms of a power-purchase
5206	5206	12 agreement negotiated between the customer and electricity
5207	5207	13 provider.
5208	5208	14 (3) For all eligible net metering customers taking
5209	5209	15 service from an electricity provider under contracts or
5210	5210	16 tariffs employing hourly or time-of-use rates, any monthly
5211	5211	17 consumption of electricity shall be calculated according
5212	5212	18 to the terms of the contract or tariff to which the same
5213	5213	19 customer would be assigned to or be eligible for if the
5214	5214	20 customer was not a net metering customer. When those same
5215	5215	21 customer-generators are net generators during any discrete
5216	5216	22 hourly or time-of-use period, the net kilowatt-hours
5217	5217	23 produced shall be valued at the same price per
5218	5218	24 kilowatt-hour as the electric service provider would
5219	5219	25 charge for retail kilowatt-hour sales during that same
5220	5220	26 time-of-use period.
5221	5221
5222	5222
5223	5223
5224	5224
5225	5225
5226	5226	SB3637 - 145 - LRB103 38841 CES 68978 b
5227	5227
5228	5228
5229	5229	SB3637- 146 -LRB103 38841 CES 68978 b SB3637 - 146 - LRB103 38841 CES 68978 b
5230	5230	SB3637 - 146 - LRB103 38841 CES 68978 b
5231	5231	1 (g) For purposes of federal and State laws providing
5232	5232	2 renewable energy credits or greenhouse gas credits, the
5233	5233	3 eligible customer shall be treated as owning and having title
5234	5234	4 to the renewable energy attributes, renewable energy credits,
5235	5235	5 and greenhouse gas emission credits related to any electricity
5236	5236	6 produced by the qualified generating unit. The electricity
5237	5237	7 provider may not condition participation in a net metering
5238	5238	8 program on the signing over of a customer's renewable energy
5239	5239	9 credits; provided, however, this subsection (g) shall not be
5240	5240	10 construed to prevent an arms-length agreement between an
5241	5241	11 electricity provider and an eligible customer that sets forth
5242	5242	12 the ownership or title of the credits.
5243	5243	13 (h) Within 120 days after the effective date of this
5244	5244	14 amendatory Act of the 95th General Assembly, the Commission
5245	5245	15 shall establish standards for net metering and, if the
5246	5246	16 Commission has not already acted on its own initiative,
5247	5247	17 standards for the interconnection of eligible renewable
5248	5248	18 generating equipment to the utility system. The
5249	5249	19 interconnection standards shall address any procedural
5250	5250	20 barriers, delays, and administrative costs associated with the
5251	5251	21 interconnection of customer-generation while ensuring the
5252	5252	22 safety and reliability of the units and the electric utility
5253	5253	23 system. The Commission shall consider the Institute of
5254	5254	24 Electrical and Electronics Engineers (IEEE) Standard 1547 and
5255	5255	25 the issues of (i) reasonable and fair fees and costs, (ii)
5256	5256	26 clear timelines for major milestones in the interconnection
5257	5257
5258	5258
5259	5259
5260	5260
5261	5261
5262	5262	SB3637 - 146 - LRB103 38841 CES 68978 b
5263	5263
5264	5264
5265	5265	SB3637- 147 -LRB103 38841 CES 68978 b SB3637 - 147 - LRB103 38841 CES 68978 b
5266	5266	SB3637 - 147 - LRB103 38841 CES 68978 b
5267	5267	1 process, (iii) nondiscriminatory terms of agreement, and (iv)
5268	5268	2 any best practices for interconnection of distributed
5269	5269	3 generation.
5270	5270	4 (h-5) Within 90 days after the effective date of this
5271	5271	5 amendatory Act of the 102nd General Assembly, the Commission
5272	5272	6 shall:
5273	5273	7 (1) establish an Interconnection Working Group. The
5274	5274	8 working group shall include representatives from electric
5275	5275	9 utilities, developers of renewable electric generating
5276	5276	10 facilities, other industries that regularly apply for
5277	5277	11 interconnection with the electric utilities,
5278	5278	12 representatives of distributed generation customers, the
5279	5279	13 Commission Staff, and such other stakeholders with a
5280	5280	14 substantial interest in the topics addressed by the
5281	5281	15 Interconnection Working Group. The Interconnection Working
5282	5282	16 Group shall address at least the following issues:
5283	5283	17 (A) cost and best available technology for
5284	5284	18 interconnection and metering, including the
5285	5285	19 standardization and publication of standard costs;
5286	5286	20 (B) transparency, accuracy and use of the
5287	5287	21 distribution interconnection queue and hosting
5288	5288	22 capacity maps;
5289	5289	23 (C) distribution system upgrade cost avoidance
5290	5290	24 through use of advanced inverter functions;
5291	5291	25 (D) predictability of the queue management process
5292	5292	26 and enforcement of timelines;
5293	5293
5294	5294
5295	5295
5296	5296
5297	5297
5298	5298	SB3637 - 147 - LRB103 38841 CES 68978 b
5299	5299
5300	5300
5301	5301	SB3637- 148 -LRB103 38841 CES 68978 b SB3637 - 148 - LRB103 38841 CES 68978 b
5302	5302	SB3637 - 148 - LRB103 38841 CES 68978 b
5303	5303	1 (E) benefits and challenges associated with group
5304	5304	2 studies and cost sharing;
5305	5305	3 (F) minimum requirements for application to the
5306	5306	4 interconnection process and throughout the
5307	5307	5 interconnection process to avoid queue clogging
5308	5308	6 behavior;
5309	5309	7 (G) process and customer service for
5310	5310	8 interconnecting customers adopting distributed energy
5311	5311	9 resources, including energy storage;
5312	5312	10 (H) options for metering distributed energy
5313	5313	11 resources, including energy storage;
5314	5314	12 (I) interconnection of new technologies, including
5315	5315	13 smart inverters and energy storage;
5316	5316	14 (J) collect, share, and examine data on Level 1
5317	5317	15 interconnection costs, including cost and type of
5318	5318	16 upgrades required for interconnection, and use this
5319	5319	17 data to inform the final standardized cost of Level 1
5320	5320	18 interconnection; and
5321	5321	19 (K) such other technical, policy, and tariff
5322	5322	20 issues related to and affecting interconnection
5323	5323	21 performance and customer service as determined by the
5324	5324	22 Interconnection Working Group.
5325	5325	23 The Commission may create subcommittees of the
5326	5326	24 Interconnection Working Group to focus on specific issues
5327	5327	25 of importance, as appropriate. The Interconnection Working
5328	5328	26 Group shall report to the Commission on recommended
5329	5329
5330	5330
5331	5331
5332	5332
5333	5333
5334	5334	SB3637 - 148 - LRB103 38841 CES 68978 b
5335	5335
5336	5336
5337	5337	SB3637- 149 -LRB103 38841 CES 68978 b SB3637 - 149 - LRB103 38841 CES 68978 b
5338	5338	SB3637 - 149 - LRB103 38841 CES 68978 b
5339	5339	1 improvements to interconnection rules and tariffs and
5340	5340	2 policies as determined by the Interconnection Working
5341	5341	3 Group at least every 6 months. Such reports shall include
5342	5342	4 consensus recommendations of the Interconnection Working
5343	5343	5 Group and, if applicable, additional recommendations for
5344	5344	6 which consensus was not reached. The Commission shall use
5345	5345	7 the report from the Interconnection Working Group to
5346	5346	8 determine whether processes should be commenced to
5347	5347	9 formally codify or implement the recommendations;
5348	5348	10 (2) create or contract for an Ombudsman to resolve
5349	5349	11 interconnection disputes through non-binding arbitration.
5350	5350	12 The Ombudsman may be paid in full or in part through fees
5351	5351	13 levied on the initiators of the dispute; and
5352	5352	14 (3) determine a single standardized cost for Level 1
5353	5353	15 interconnections, which shall not exceed $200.
5354	5354	16 (i) All electricity providers shall begin to offer net
5355	5355	17 metering no later than April 1, 2008.
5356	5356	18 (j) An electricity provider shall provide net metering to
5357	5357	19 eligible customers according to subsections (d), (d-5), and
5358	5358	20 (e). Eligible renewable electrical generating facilities for
5359	5359	21 which eligible customers registered for net metering before
5360	5360	22 January 1, 2025 shall continue to receive net metering
5361	5361	23 services according to subsections (d), (d-5), and (e) of this
5362	5362	24 Section for the lifetime of the system, regardless of whether
5363	5363	25 those retail customers change electricity providers or whether
5364	5364	26 the retail customer benefiting from the system changes. On and
5365	5365
5366	5366
5367	5367
5368	5368
5369	5369
5370	5370	SB3637 - 149 - LRB103 38841 CES 68978 b
5371	5371
5372	5372
5373	5373	SB3637- 150 -LRB103 38841 CES 68978 b SB3637 - 150 - LRB103 38841 CES 68978 b
5374	5374	SB3637 - 150 - LRB103 38841 CES 68978 b
5375	5375	1 after January 1, 2025, any eligible customer that applies for
5376	5376	2 net metering and previously would have qualified under
5377	5377	3 subsections (d), (d-5), or (e) shall only be eligible for net
5378	5378	4 metering as described in subsection (n).
5379	5379	5 (k) Each electricity provider shall maintain records and
5380	5380	6 report annually to the Commission the total number of net
5381	5381	7 metering customers served by the provider, as well as the
5382	5382	8 type, capacity, and energy sources of the generating systems
5383	5383	9 used by the net metering customers. Nothing in this Section
5384	5384	10 shall limit the ability of an electricity provider to request
5385	5385	11 the redaction of information deemed by the Commission to be
5386	5386	12 confidential business information.
5387	5387	13 (l)(1) Notwithstanding the definition of "eligible
5388	5388	14 customer" in item (ii) of subsection (b) of this Section, each
5389	5389	15 electricity provider shall allow net metering as set forth in
5390	5390	16 this subsection (l) and for the following projects, provided
5391	5391	17 that only electric utilities serving more than 200,000
5392	5392	18 customers as of January 1, 2021 shall provide net metering for
5393	5393	19 projects that are eligible for subparagraph (C) of this
5394	5394	20 paragraph (1) and have energized after the effective date of
5395	5395	21 this amendatory Act of the 102nd General Assembly:
5396	5396	22 (A) properties owned or leased by multiple customers
5397	5397	23 that contribute to the operation of an eligible renewable
5398	5398	24 electrical generating facility through an ownership or
5399	5399	25 leasehold interest of at least 200 watts in such facility,
5400	5400	26 such as a community-owned wind project, a community-owned
5401	5401
5402	5402
5403	5403
5404	5404
5405	5405
5406	5406	SB3637 - 150 - LRB103 38841 CES 68978 b
5407	5407
5408	5408
5409	5409	SB3637- 151 -LRB103 38841 CES 68978 b SB3637 - 151 - LRB103 38841 CES 68978 b
5410	5410	SB3637 - 151 - LRB103 38841 CES 68978 b
5411	5411	1 biomass project, a community-owned solar project, or a
5412	5412	2 community methane digester processing livestock waste from
5413	5413	3 multiple sources, provided that the facility is also
5414	5414	4 located within the utility's service territory;
5415	5415	5 (B) individual units, apartments, or properties
5416	5416	6 located in a single building that are owned or leased by
5417	5417	7 multiple customers and collectively served by a common
5418	5418	8 eligible renewable electrical generating facility, such as
5419	5419	9 an office or apartment building, a shopping center or
5420	5420	10 strip mall served by photovoltaic panels on the roof; and
5421	5421	11 (C) subscriptions to community renewable generation
5422	5422	12 projects, including community renewable generation
5423	5423	13 projects on the customer's side of the billing meter of a
5424	5424	14 host facility and partially used for the customer's own
5425	5425	15 load.
5426	5426	16 In addition, the nameplate capacity of the eligible
5427	5427	17 renewable electric generating facility that serves the demand
5428	5428	18 of the properties, units, or apartments identified in
5429	5429	19 paragraphs (1) and (2) of this subsection (l) shall not exceed
5430	5430	20 5,000 kilowatts in nameplate capacity in total. Any eligible
5431	5431	21 renewable electrical generating facility or community
5432	5432	22 renewable generation project that is powered by photovoltaic
5433	5433	23 electric energy and installed after the effective date of this
5434	5434	24 amendatory Act of the 99th General Assembly must be installed
5435	5435	25 by a qualified person in compliance with the requirements of
5436	5436	26 Section 16-128A of the Public Utilities Act and any rules or
5437	5437
5438	5438
5439	5439
5440	5440
5441	5441
5442	5442	SB3637 - 151 - LRB103 38841 CES 68978 b
5443	5443
5444	5444
5445	5445	SB3637- 152 -LRB103 38841 CES 68978 b SB3637 - 152 - LRB103 38841 CES 68978 b
5446	5446	SB3637 - 152 - LRB103 38841 CES 68978 b
5447	5447	1 regulations adopted thereunder.
5448	5448	2 (2) Notwithstanding anything to the contrary, an
5449	5449	3 electricity provider shall provide credits for the electricity
5450	5450	4 produced by the projects described in paragraph (1) of this
5451	5451	5 subsection (l). The electricity provider shall provide credits
5452	5452	6 that include at least energy supply, capacity, transmission,
5453	5453	7 and, if applicable, the purchased energy adjustment on the
5454	5454	8 subscriber's monthly bill equal to the subscriber's share of
5455	5455	9 the production of electricity from the project, as determined
5456	5456	10 by paragraph (3) of this subsection (l). For customers with
5457	5457	11 transmission or capacity charges not charged on a
5458	5458	12 kilowatt-hour basis, the electricity provider shall prepare a
5459	5459	13 reasonable approximation of the kilowatt-hour equivalent value
5460	5460	14 and provide that value as a monetary credit. The electricity
5461	5461	15 provider shall submit these approximation methodologies to the
5462	5462	16 Commission for review, modification, and approval.
5463	5463	17 Notwithstanding anything to the contrary, customers on payment
5464	5464	18 plans or participating in budget billing programs shall have
5465	5465	19 credits applied on a monthly basis.
5466	5466	20 (3) Notwithstanding anything to the contrary and
5467	5467	21 regardless of whether a subscriber to an eligible community
5468	5468	22 renewable generation project receives power and energy service
5469	5469	23 from the electric utility or an alternative retail electric
5470	5470	24 supplier, for projects eligible under paragraph (C) of
5471	5471	25 subparagraph (1) of this subsection (l), electric utilities
5472	5472	26 serving more than 200,000 customers as of January 1, 2021
5473	5473
5474	5474
5475	5475
5476	5476
5477	5477
5478	5478	SB3637 - 152 - LRB103 38841 CES 68978 b
5479	5479
5480	5480
5481	5481	SB3637- 153 -LRB103 38841 CES 68978 b SB3637 - 153 - LRB103 38841 CES 68978 b
5482	5482	SB3637 - 153 - LRB103 38841 CES 68978 b
5483	5483	1 shall provide the monetary credits to a subscriber's
5484	5484	2 subsequent bill for the electricity produced by community
5485	5485	3 renewable generation projects. The electric utility shall
5486	5486	4 provide monetary credits to a subscriber's subsequent bill at
5487	5487	5 the utility's total price to compare equal to the subscriber's
5488	5488	6 share of the production of electricity from the project, as
5489	5489	7 determined by paragraph (5) of this subsection (l). For the
5490	5490	8 purposes of this subsection, "total price to compare" means
5491	5491	9 the rate or rates published by the Illinois Commerce
5492	5492	10 Commission for energy supply for eligible customers receiving
5493	5493	11 supply service from the electric utility, and shall include
5494	5494	12 energy, capacity, transmission, and the purchased energy
5495	5495	13 adjustment. Notwithstanding anything to the contrary,
5496	5496	14 customers on payment plans or participating in budget billing
5497	5497	15 programs shall have credits applied on a monthly basis. Any
5498	5498	16 applicable credit or reduction in load obligation from the
5499	5499	17 production of the community renewable generating projects
5500	5500	18 receiving a credit under this subsection shall be credited to
5501	5501	19 the electric utility to offset the cost of providing the
5502	5502	20 credit. To the extent that the credit or load obligation
5503	5503	21 reduction does not completely offset the cost of providing the
5504	5504	22 credit to subscribers of community renewable generation
5505	5505	23 projects as described in this subsection, the electric utility
5506	5506	24 may recover the remaining costs through its Multi-Year Rate
5507	5507	25 Plan. All electric utilities serving 200,000 or fewer
5508	5508	26 customers as of January 1, 2021 shall only provide the
5509	5509
5510	5510
5511	5511
5512	5512
5513	5513
5514	5514	SB3637 - 153 - LRB103 38841 CES 68978 b
5515	5515
5516	5516
5517	5517	SB3637- 154 -LRB103 38841 CES 68978 b SB3637 - 154 - LRB103 38841 CES 68978 b
5518	5518	SB3637 - 154 - LRB103 38841 CES 68978 b
5519	5519	1 monetary credits to a subscriber's subsequent bill for the
5520	5520	2 electricity produced by community renewable generation
5521	5521	3 projects if the subscriber receives power and energy service
5522	5522	4 from the electric utility. Alternative retail electric
5523	5523	5 suppliers providing power and energy service to a subscriber
5524	5524	6 located within the service territory of an electric utility
5525	5525	7 not subject to Sections 16-108.18 and 16-118 shall provide the
5526	5526	8 monetary credits to the subscriber's subsequent bill for the
5527	5527	9 electricity produced by community renewable generation
5528	5528	10 projects.
5529	5529	11 (4) If requested by the owner or operator of a community
5530	5530	12 renewable generating project, an electric utility serving more
5531	5531	13 than 200,000 customers as of January 1, 2021 shall enter into a
5532	5532	14 net crediting agreement with the owner or operator to include
5533	5533	15 a subscriber's subscription fee on the subscriber's monthly
5534	5534	16 electric bill and provide the subscriber with a net credit
5535	5535	17 equivalent to the total bill credit value for that generation
5536	5536	18 period minus the subscription fee, provided the subscription
5537	5537	19 fee is structured as a fixed percentage of bill credit value.
5538	5538	20 The net crediting agreement shall set forth payment terms from
5539	5539	21 the electric utility to the owner or operator of the community
5540	5540	22 renewable generating project, and the electric utility may
5541	5541	23 charge a net crediting fee to the owner or operator of a
5542	5542	24 community renewable generating project that may not exceed 2%
5543	5543	25 of the bill credit value. Notwithstanding anything to the
5544	5544	26 contrary, an electric utility serving 200,000 customers or
5545	5545
5546	5546
5547	5547
5548	5548
5549	5549
5550	5550	SB3637 - 154 - LRB103 38841 CES 68978 b
5551	5551
5552	5552
5553	5553	SB3637- 155 -LRB103 38841 CES 68978 b SB3637 - 155 - LRB103 38841 CES 68978 b
5554	5554	SB3637 - 155 - LRB103 38841 CES 68978 b
5555	5555	1 fewer as of January 1, 2021 shall not be obligated to enter
5556	5556	2 into a net crediting agreement with the owner or operator of a
5557	5557	3 community renewable generating project.
5558	5558	4 (5) For the purposes of facilitating net metering, the
5559	5559	5 owner or operator of the eligible renewable electrical
5560	5560	6 generating facility or community renewable generation project
5561	5561	7 shall be responsible for determining the amount of the credit
5562	5562	8 that each customer or subscriber participating in a project
5563	5563	9 under this subsection (l) is to receive in the following
5564	5564	10 manner:
5565	5565	11 (A) The owner or operator shall, on a monthly basis,
5566	5566	12 provide to the electric utility the kilowatthours of
5567	5567	13 generation attributable to each of the utility's retail
5568	5568	14 customers and subscribers participating in projects under
5569	5569	15 this subsection (l) in accordance with the customer's or
5570	5570	16 subscriber's share of the eligible renewable electric
5571	5571	17 generating facility's or community renewable generation
5572	5572	18 project's output of power and energy for such month. The
5573	5573	19 owner or operator shall electronically transmit such
5574	5574	20 calculations and associated documentation to the electric
5575	5575	21 utility, in a format or method set forth in the applicable
5576	5576	22 tariff, on a monthly basis so that the electric utility
5577	5577	23 can reflect the monetary credits on customers' and
5578	5578	24 subscribers' electric utility bills. The electric utility
5579	5579	25 shall be permitted to revise its tariffs to implement the
5580	5580	26 provisions of this amendatory Act of the 102nd General
5581	5581
5582	5582
5583	5583
5584	5584
5585	5585
5586	5586	SB3637 - 155 - LRB103 38841 CES 68978 b
5587	5587
5588	5588
5589	5589	SB3637- 156 -LRB103 38841 CES 68978 b SB3637 - 156 - LRB103 38841 CES 68978 b
5590	5590	SB3637 - 156 - LRB103 38841 CES 68978 b
5591	5591	1 Assembly. The owner or operator shall separately provide
5592	5592	2 the electric utility with the documentation detailing the
5593	5593	3 calculations supporting the credit in the manner set forth
5594	5594	4 in the applicable tariff.
5595	5595	5 (B) For those participating customers and subscribers
5596	5596	6 who receive their energy supply from an alternative retail
5597	5597	7 electric supplier, the electric utility shall remit to the
5598	5598	8 applicable alternative retail electric supplier the
5599	5599	9 information provided under subparagraph (A) of this
5600	5600	10 paragraph (3) for such customers and subscribers in a
5601	5601	11 manner set forth in such alternative retail electric
5602	5602	12 supplier's net metering program, or as otherwise agreed
5603	5603	13 between the utility and the alternative retail electric
5604	5604	14 supplier. The alternative retail electric supplier shall
5605	5605	15 then submit to the utility the amount of the charges for
5606	5606	16 power and energy to be applied to such customers and
5607	5607	17 subscribers, including the amount of the credit associated
5608	5608	18 with net metering.
5609	5609	19 (C) A participating customer or subscriber may provide
5610	5610	20 authorization as required by applicable law that directs
5611	5611	21 the electric utility to submit information to the owner or
5612	5612	22 operator of the eligible renewable electrical generating
5613	5613	23 facility or community renewable generation project to
5614	5614	24 which the customer or subscriber has an ownership or
5615	5615	25 leasehold interest or a subscription. Such information
5616	5616	26 shall be limited to the components of the net metering
5617	5617
5618	5618
5619	5619
5620	5620
5621	5621
5622	5622	SB3637 - 156 - LRB103 38841 CES 68978 b
5623	5623
5624	5624
5625	5625	SB3637- 157 -LRB103 38841 CES 68978 b SB3637 - 157 - LRB103 38841 CES 68978 b
5626	5626	SB3637 - 157 - LRB103 38841 CES 68978 b
5627	5627	1 credit calculated under this subsection (l), including the
5628	5628	2 bill credit rate, total kilowatthours, and total monetary
5629	5629	3 credit value applied to the customer's or subscriber's
5630	5630	4 bill for the monthly billing period.
5631	5631	5 (l-5) Within 90 days after the effective date of this
5632	5632	6 amendatory Act of the 102nd General Assembly, each electric
5633	5633	7 utility subject to this Section shall file a tariff or tariffs
5634	5634	8 to implement the provisions of subsection (l) of this Section,
5635	5635	9 which shall, consistent with the provisions of subsection (l),
5636	5636	10 describe the terms and conditions under which owners or
5637	5637	11 operators of qualifying properties, units, or apartments may
5638	5638	12 participate in net metering. The Commission shall approve, or
5639	5639	13 approve with modification, the tariff within 120 days after
5640	5640	14 the effective date of this amendatory Act of the 102nd General
5641	5641	15 Assembly.
5642	5642	16 (m) Nothing in this Section shall affect the right of an
5643	5643	17 electricity provider to continue to provide, or the right of a
5644	5644	18 retail customer to continue to receive service pursuant to a
5645	5645	19 contract for electric service between the electricity provider
5646	5646	20 and the retail customer in accordance with the prices, terms,
5647	5647	21 and conditions provided for in that contract. Either the
5648	5648	22 electricity provider or the customer may require compliance
5649	5649	23 with the prices, terms, and conditions of the contract.
5650	5650	24 (n) On and after January 1, 2025, the net metering
5651	5651	25 services described in subsections (d), (d-5), and (e) of this
5652	5652	26 Section shall no longer be offered, except as to those
5653	5653
5654	5654
5655	5655
5656	5656
5657	5657
5658	5658	SB3637 - 157 - LRB103 38841 CES 68978 b
5659	5659
5660	5660
5661	5661	SB3637- 158 -LRB103 38841 CES 68978 b SB3637 - 158 - LRB103 38841 CES 68978 b
5662	5662	SB3637 - 158 - LRB103 38841 CES 68978 b
5663	5663	1 eligible renewable electrical generating facilities for which
5664	5664	2 retail customers are receiving net metering service under
5665	5665	3 these subsections at the time the net metering services under
5666	5666	4 those subsections are no longer offered; those systems shall
5667	5667	5 continue to receive net metering services described in
5668	5668	6 subsections (d), (d-5), and (e) of this Section for the
5669	5669	7 lifetime of the system, regardless of if those retail
5670	5670	8 customers change electricity providers or whether the retail
5671	5671	9 customer benefiting from the system changes. The electric
5672	5672	10 utility serving more than 200,000 customers as of January 1,
5673	5673	11 2021 is responsible for ensuring the billing credits continue
5674	5674	12 without lapse for the lifetime of systems, as required in
5675	5675	13 subsection (o). Those retail customers that begin taking net
5676	5676	14 metering service after the date that net metering services are
5677	5677	15 no longer offered under such subsections shall be subject to
5678	5678	16 the provisions set forth in the following paragraphs (1)
5679	5679	17 through (3) of this subsection (n):
5680	5680	18 (1) An electricity provider shall charge or credit for
5681	5681	19 the net electricity supplied to eligible customers or
5682	5682	20 provided by eligible customers whose electric supply
5683	5683	21 service is not provided based on hourly pricing in the
5684	5684	22 following manner:
5685	5685	23 (A) If the amount of electricity used by the
5686	5686	24 customer during the monthly billing period exceeds the
5687	5687	25 amount of electricity produced by the customer, then
5688	5688	26 the electricity provider shall charge the customer for
5689	5689
5690	5690
5691	5691
5692	5692
5693	5693
5694	5694	SB3637 - 158 - LRB103 38841 CES 68978 b
5695	5695
5696	5696
5697	5697	SB3637- 159 -LRB103 38841 CES 68978 b SB3637 - 159 - LRB103 38841 CES 68978 b
5698	5698	SB3637 - 159 - LRB103 38841 CES 68978 b
5699	5699	1 the net kilowatt-hour based electricity charges
5700	5700	2 reflected in the customer's electric service rate
5701	5701	3 supplied to and used by the customer as provided in
5702	5702	4 paragraph (3) of this subsection (n).
5703	5703	5 (B) If the amount of electricity produced by a
5704	5704	6 customer during the monthly billing period exceeds the
5705	5705	7 amount of electricity used by the customer during that
5706	5706	8 billing period, then the electricity provider
5707	5707	9 supplying that customer shall apply a 1:1
5708	5708	10 kilowatt-hour energy or monetary credit kilowatt-hour
5709	5709	11 supply charges to the customer's subsequent bill. The
5710	5710	12 customer shall choose between 1:1 kilowatt-hour or
5711	5711	13 monetary credit at the time of application. For the
5712	5712	14 purposes of this subsection, "kilowatt-hour supply
5713	5713	15 charges" means the kilowatt-hour equivalent values for
5714	5714	16 energy, capacity, transmission, and the purchased
5715	5715	17 energy adjustment, if applicable. Notwithstanding
5716	5716	18 anything to the contrary, customers on payment plans
5717	5717	19 or participating in budget billing programs shall have
5718	5718	20 credits applied on a monthly basis. The electricity
5719	5719	21 provider shall continue to carry over any excess
5720	5720	22 kilowatt-hour or monetary energy credits earned and
5721	5721	23 apply those credits to subsequent billing periods. For
5722	5722	24 customers with transmission or capacity charges not
5723	5723	25 charged on a kilowatt-hour basis, the electricity
5724	5724	26 provider shall prepare a reasonable approximation of
5725	5725
5726	5726
5727	5727
5728	5728
5729	5729
5730	5730	SB3637 - 159 - LRB103 38841 CES 68978 b
5731	5731
5732	5732
5733	5733	SB3637- 160 -LRB103 38841 CES 68978 b SB3637 - 160 - LRB103 38841 CES 68978 b
5734	5734	SB3637 - 160 - LRB103 38841 CES 68978 b
5735	5735	1 the kilowatt-hour equivalent value and provide that
5736	5736	2 value as a monetary credit. The electricity provider
5737	5737	3 shall submit these approximation methodologies to the
5738	5738	4 Commission for review, modification, and approval.
5739	5739	5 (C) (Blank).
5740	5740	6 (2) An electricity provider shall charge or credit for
5741	5741	7 the net electricity supplied to eligible customers or
5742	5742	8 provided by eligible customers whose electric supply
5743	5743	9 service is provided based on hourly pricing in the
5744	5744	10 following manner:
5745	5745	11 (A) If the amount of electricity used by the
5746	5746	12 customer during any hourly period exceeds the amount
5747	5747	13 of electricity produced by the customer, then the
5748	5748	14 electricity provider shall charge the customer for the
5749	5749	15 net electricity supplied to and used by the customer
5750	5750	16 as provided in paragraph (3) of this subsection (n).
5751	5751	17 (B) If the amount of electricity produced by a
5752	5752	18 customer during any hourly period exceeds the amount
5753	5753	19 of electricity used by the customer during that hourly
5754	5754	20 period, the energy provider shall calculate an energy
5755	5755	21 credit for the net kilowatt-hours produced in such
5756	5756	22 period, and shall apply that credit as a monetary
5757	5757	23 credit to the customer's subsequent bill. The value of
5758	5758	24 the energy credit shall be calculated using the same
5759	5759	25 price per kilowatt-hour as the electric service
5760	5760	26 provider would charge for kilowatt-hour energy sales
5761	5761
5762	5762
5763	5763
5764	5764
5765	5765
5766	5766	SB3637 - 160 - LRB103 38841 CES 68978 b
5767	5767
5768	5768
5769	5769	SB3637- 161 -LRB103 38841 CES 68978 b SB3637 - 161 - LRB103 38841 CES 68978 b
5770	5770	SB3637 - 161 - LRB103 38841 CES 68978 b
5771	5771	1 during that same hourly period and shall also include
5772	5772	2 values for capacity and transmission. For customers
5773	5773	3 with transmission or capacity charges not charged on a
5774	5774	4 kilowatt-hour basis, the electricity provider shall
5775	5775	5 prepare a reasonable approximation of the
5776	5776	6 kilowatt-hour equivalent value and provide that value
5777	5777	7 as a monetary credit. The electricity provider shall
5778	5778	8 submit these approximation methodologies to the
5779	5779	9 Commission for review, modification, and approval.
5780	5780	10 Notwithstanding anything to the contrary, customers on
5781	5781	11 payment plans or participating in budget billing
5782	5782	12 programs shall have credits applied on a monthly
5783	5783	13 basis.
5784	5784	14 (3) An electricity provider shall provide electric
5785	5785	15 service to eligible customers who utilize net metering at
5786	5786	16 non-discriminatory rates that are identical, with respect
5787	5787	17 to rate structure, retail rate components, and any monthly
5788	5788	18 charges, to the rates that the customer would be charged
5789	5789	19 if not a net metering customer. An electricity provider
5790	5790	20 shall charge the customer for the net electricity supplied
5791	5791	21 to and used by the customer according to the terms of the
5792	5792	22 contract or tariff to which the same customer would be
5793	5793	23 assigned or be eligible for if the customer was not a net
5794	5794	24 metering customer. An electricity provider shall not
5795	5795	25 charge net metering customers any fee or charge or require
5796	5796	26 additional equipment, insurance, or any other requirements
5797	5797
5798	5798
5799	5799
5800	5800
5801	5801
5802	5802	SB3637 - 161 - LRB103 38841 CES 68978 b
5803	5803
5804	5804
5805	5805	SB3637- 162 -LRB103 38841 CES 68978 b SB3637 - 162 - LRB103 38841 CES 68978 b
5806	5806	SB3637 - 162 - LRB103 38841 CES 68978 b
5807	5807	1 not specifically authorized by interconnection standards
5808	5808	2 authorized by the Commission, unless the fee, charge, or
5809	5809	3 other requirement would apply to other similarly situated
5810	5810	4 customers who are not net metering customers. The customer
5811	5811	5 remains responsible for the gross amount of delivery
5812	5812	6 services charges, supply-related charges that are kilowatt
5813	5813	7 based, and all taxes and fees related to such charges. The
5814	5814	8 customer also remains responsible for all taxes and fees
5815	5815	9 that would otherwise be applicable to the net amount of
5816	5816	10 electricity used by the customer. Paragraphs (1) and (2)
5817	5817	11 of this subsection (n) shall not be construed to prevent
5818	5818	12 an arms-length agreement between an electricity provider
5819	5819	13 and an eligible customer that sets forth different prices,
5820	5820	14 terms, and conditions for the provision of net metering
5821	5821	15 service, including, but not limited to, the provision of
5822	5822	16 the appropriate metering equipment for non-residential
5823	5823	17 customers. Nothing in this paragraph (3) shall be
5824	5824	18 interpreted to mandate that a utility that is only
5825	5825	19 required to provide delivery services to a given customer
5826	5826	20 must also sell electricity to such customer.
5827	5827	21 (o) Within 90 days after the effective date of this
5828	5828	22 amendatory Act of the 102nd General Assembly, each electric
5829	5829	23 utility subject to this Section shall file a tariff, which
5830	5830	24 shall, consistent with the provisions of this Section, propose
5831	5831	25 the terms and conditions under which a customer may
5832	5832	26 participate in net metering. The tariff for electric utilities
5833	5833
5834	5834
5835	5835
5836	5836
5837	5837
5838	5838	SB3637 - 162 - LRB103 38841 CES 68978 b
5839	5839
5840	5840
5841	5841	SB3637- 163 -LRB103 38841 CES 68978 b SB3637 - 163 - LRB103 38841 CES 68978 b
5842	5842	SB3637 - 163 - LRB103 38841 CES 68978 b
5843	5843	1 serving more than 200,000 customers as of January 1, 2021
5844	5844	2 shall also provide a streamlined and transparent bill
5845	5845	3 crediting system for net metering to be managed by the
5846	5846	4 electric utilities. The terms and conditions shall include,
5847	5847	5 but are not limited to, that an electric utility shall manage
5848	5848	6 and maintain billing of net metering credits and charges
5849	5849	7 regardless of if the eligible customer takes net metering
5850	5850	8 under an electric utility or alternative retail electric
5851	5851	9 supplier. The electric utility serving more than 200,000
5852	5852	10 customers as of January 1, 2021 shall process and approve all
5853	5853	11 net metering applications, even if an eligible customer is
5854	5854	12 served by an alternative retail electric supplier; and the
5855	5855	13 utility shall forward application approval to the appropriate
5856	5856	14 alternative retail electric supplier. Eligibility for net
5857	5857	15 metering shall remain with the owner of the utility billing
5858	5858	16 address such that, if an eligible renewable electrical
5859	5859	17 generating facility changes ownership, the net metering
5860	5860	18 eligibility transfers to the new owner. The electric utility
5861	5861	19 serving more than 200,000 customers as of January 1, 2021
5862	5862	20 shall manage net metering billing for eligible customers to
5863	5863	21 ensure full crediting occurs on electricity bills, including,
5864	5864	22 but not limited to, ensuring net metering crediting begins
5865	5865	23 upon commercial operation date, net metering billing transfers
5866	5866	24 immediately if an eligible customer switches from an electric
5867	5867	25 utility to alternative retail electric supplier or vice versa,
5868	5868	26 and net metering billing transfers between ownership of a
5869	5869
5870	5870
5871	5871
5872	5872
5873	5873
5874	5874	SB3637 - 163 - LRB103 38841 CES 68978 b
5875	5875
5876	5876
5877	5877	SB3637- 164 -LRB103 38841 CES 68978 b SB3637 - 164 - LRB103 38841 CES 68978 b
5878	5878	SB3637 - 164 - LRB103 38841 CES 68978 b
5879	5879	1 valid billing address. All transfers referenced in the
5880	5880	2 preceding sentence shall include transfer of all banked
5881	5881	3 credits. All electric utilities serving 200,000 or fewer
5882	5882	4 customers as of January 1, 2021 shall manage net metering
5883	5883	5 billing for eligible customers receiving power and energy
5884	5884	6 service from the electric utility to ensure full crediting
5885	5885	7 occurs on electricity bills, ensuring net metering crediting
5886	5886	8 begins upon commercial operation date, net metering billing
5887	5887	9 transfers immediately if an eligible customer switches from an
5888	5888	10 electric utility to alternative retail electric supplier or
5889	5889	11 vice versa, and net metering billing transfers between
5890	5890	12 ownership of a valid billing address. Alternative retail
5891	5891	13 electric suppliers providing power and energy service to
5892	5892	14 eligible customers located within the service territory of an
5893	5893	15 electric utility serving 200,000 or fewer customers as of
5894	5894	16 January 1, 2021 shall manage net metering billing for eligible
5895	5895	17 customers to ensure full crediting occurs on electricity
5896	5896	18 bills, including, but not limited to, ensuring net metering
5897	5897	19 crediting begins upon commercial operation date, net metering
5898	5898	20 billing transfers immediately if an eligible customer switches
5899	5899	21 from an electric utility to alternative retail electric
5900	5900	22 supplier or vice versa, and net metering billing transfers
5901	5901	23 between ownership of a valid billing address.
5902	5902	24 (Source: P.A. 102-662, eff. 9-15-21.)
5903	5903	25 (220 ILCS 5/16-107.8 new)
5904	5904
5905	5905
5906	5906
5907	5907
5908	5908
5909	5909	SB3637 - 164 - LRB103 38841 CES 68978 b
5910	5910
5911	5911
5912	5912	SB3637- 165 -LRB103 38841 CES 68978 b SB3637 - 165 - LRB103 38841 CES 68978 b
5913	5913	SB3637 - 165 - LRB103 38841 CES 68978 b
5914	5914	1 Sec. 16-107.8. Residential time-of-use pricing.
5915	5915	2 (a) The General Assembly finds that time-of-use rates and
5916	5916	3 pricing plans can lower energy costs for consumers and reduce
5917	5917	4 grid costs as well as help the State achieve its energy policy
5918	5918	5 goals by improving load shape, encouraging energy
5919	5919	6 conservation, and shifting usage away from periods where
5920	5920	7 fossil fuels are used to meet peak demand. Further, by
5921	5921	8 providing consumers information relating the costs of service
5922	5922	9 to the time of energy usage, time-of-use rates can help
5923	5923	10 consumers reduce their energy bills by using electricity when
5924	5924	11 it is less costly. Time-of-use rates can help allocate
5925	5925	12 electricity system costs more accurately and thus equitably to
5926	5926	13 those who cause costs. Such rates can reduce the need for
5927	5927	14 ramping resources and increase the grid's ability to
5928	5928	15 cost-effectively integrate greater quantities of variable
5929	5929	16 renewable energy and distributed energy resources.
5930	5930	17 (b) An electric utility that has a tariff approved under
5931	5931	18 subsection (d) of Section 16-108.18 within one year of this
5932	5932	19 amendatory Act of the 103rd General Assembly shall also offer
5933	5933	20 at least one market-based, residential rate for eligible
5934	5934	21 retail customers that choose to take power and energy supply
5935	5935	22 service from the utility. If the utility has a pending request
5936	5936	23 for approval of a Multi-Year Integrated Grid Plan, the utility
5937	5937	24 shall update its filing in that docket to reflect the likely
5938	5938	25 impacts of the time-of-use rate offering. The utility shall
5939	5939	26 file its time-of-use rate tariff no later than 120 days after
5940	5940
5941	5941
5942	5942
5943	5943
5944	5944
5945	5945	SB3637 - 165 - LRB103 38841 CES 68978 b
5946	5946
5947	5947
5948	5948	SB3637- 166 -LRB103 38841 CES 68978 b SB3637 - 166 - LRB103 38841 CES 68978 b
5949	5949	SB3637 - 166 - LRB103 38841 CES 68978 b
5950	5950	1 the effective date of this amendatory Act of the 103rd General
5951	5951	2 Assembly, and each utility subject to this requirement shall
5952	5952	3 implement the requirements of this subsection by filing a
5953	5953	4 tariff with the Commission. The tariff or tariffs shall be
5954	5954	5 subject to the following provisions:
5955	5955	6 (1) If more than one tariff is proposed, at least one
5956	5956	7 tariff shall include at least 3 time blocks: a peak time
5957	5957	8 block, defined as 2 p.m. to 7 p.m. on nonholiday weekdays
5958	5958	9 or the 5 consecutive hours best reflecting the highest
5959	5959	10 system peak demands; an off-peak time block, defined as 10
5960	5960	11 a.m. to 2 p.m. and 7 p.m. to 10 p.m. on nonholiday weekdays
5961	5961	12 or the 7 total hours occurring in some combination before
5962	5962	13 and after the peak period, which reflect the next highest
5963	5963	14 system peak demands; and a super-off-peak time block,
5964	5964	15 defined as all other hours and including weekend days.
5965	5965	16 (2) This tariff shall strive to achieve price ratios
5966	5966	17 between the blocks as follows: the super-off-peak time
5967	5967	18 block price shall be no less than zero but no greater than
5968	5968	19 one-half of the price of the off-peak time block price,
5969	5969	20 and the off-peak time block price shall be no greater than
5970	5970	21 one-half of the price of the peak time block price.
5971	5971	22 (3) The time-of-use rate shall include the costs of
5972	5972	23 electric capacity, costs of transmission services, and
5973	5973	24 charges for network integration transmission service,
5974	5974	25 transmission enhancement, and locational reliability, as
5975	5975	26 these terms are defined in the PJM Interconnection LLC
5976	5976
5977	5977
5978	5978
5979	5979
5980	5980
5981	5981	SB3637 - 166 - LRB103 38841 CES 68978 b
5982	5982
5983	5983
5984	5984	SB3637- 167 -LRB103 38841 CES 68978 b SB3637 - 167 - LRB103 38841 CES 68978 b
5985	5985	SB3637 - 167 - LRB103 38841 CES 68978 b
5986	5986	1 Open Access Transmission Tariff and manuals on January 1,
5987	5987	2 2019, within the prices for each time block and seasonal
5988	5988	3 block in which the associated costs generally are
5989	5989	4 incurred. If the Open Access Transmission Tariff or
5990	5990	5 manuals subsequently renames those terms, the services
5991	5991	6 reflected under those terms shall continue to be included
5992	5992	7 in the time-of-use rate described in this paragraph.
5993	5993	8 (4) Adjustments to the charges set by the tariff may
5994	5994	9 be made on a semi-annual basis, as follows: each May and
5995	5995	10 November, the utility shall submit to the Commission,
5996	5996	11 through an informational filing, its updated charges, and
5997	5997	12 such charges shall take effect beginning with the June
5998	5998	13 monthly billing period and December monthly billing
5999	5999	14 period, respectively.
6000	6000	15 (5) The tariff shall include a purchased energy
6001	6001	16 adjustment to fully recover the supply costs for the
6002	6002	17 customers taking service under this tariff.
6003	6003	18 As used in this subsection, "eligible residential
6004	6004	19 customers" includes, but is not limited to, customers
6005	6005	20 participating in net electricity metering under the terms of
6006	6006	21 Section 16-107.5.
6007	6007	22 (c) The Commission shall, after notice and hearing,
6008	6008	23 approve the tariff or tariffs with modifications the
6009	6009	24 Commission finds necessary to improve the program design,
6010	6010	25 customer participation in the program, or coordination with
6011	6011	26 existing utility pricing programs, energy efficiency programs,
6012	6012
6013	6013
6014	6014
6015	6015
6016	6016
6017	6017	SB3637 - 167 - LRB103 38841 CES 68978 b
6018	6018
6019	6019
6020	6020	SB3637- 168 -LRB103 38841 CES 68978 b SB3637 - 168 - LRB103 38841 CES 68978 b
6021	6021	SB3637 - 168 - LRB103 38841 CES 68978 b
6022	6022	1 demand-response programs, and any other programs supporting
6023	6023	2 State energy policy goals and the integration of distributed
6024	6024	3 energy resources. The Commission shall also consider how the
6025	6025	4 proposed time-of-use rate design reflects the system costs and
6026	6026	5 usage patterns of the utility. A proceeding under this
6027	6027	6 subsection may not exceed 120 days in length.
6028	6028	7 (d) If the Commission issues an order pursuant to this
6029	6029	8 subsection, the affected electric utility shall contract with
6030	6030	9 an entity not affiliated with the electric utility to serve as
6031	6031	10 a program administrator to develop and implement a program to
6032	6032	11 provide consumer outreach, enrollment, and education
6033	6033	12 concerning time-of-use pricing and to establish and administer
6034	6034	13 an information system and technical and other customer
6035	6035	14 assistance that is necessary to enable customers to manage
6036	6036	15 electricity use. The program administrator: (i) shall be
6037	6037	16 selected and compensated by the electric utility, subject to
6038	6038	17 Commission approval; (ii) shall have demonstrated technical
6039	6039	18 and managerial competence in the development and
6040	6040	19 administration of demand management programs; and (iii) may
6041	6041	20 develop and implement risk management, energy efficiency, and
6042	6042	21 other services related to energy use management for which the
6043	6043	22 program administrator shall be compensated by participants in
6044	6044	23 the program receiving such services. The electric utility
6045	6045	24 shall provide the program administrator with all information
6046	6046	25 and assistance necessary to perform the program
6047	6047	26 administrator's duties, including, but not limited to,
6048	6048
6049	6049
6050	6050
6051	6051
6052	6052
6053	6053	SB3637 - 168 - LRB103 38841 CES 68978 b
6054	6054
6055	6055
6056	6056	SB3637- 169 -LRB103 38841 CES 68978 b SB3637 - 169 - LRB103 38841 CES 68978 b
6057	6057	SB3637 - 169 - LRB103 38841 CES 68978 b
6058	6058	1 customer, account, and energy use data. The electric utility
6059	6059	2 shall permit the program administrator to include inserts in
6060	6060	3 residential customer bills 2 times per year to assist with
6061	6061	4 customer outreach and enrollment. The program administrator
6062	6062	5 shall submit an annual report to the electric utility no later
6063	6063	6 than April 1 of each year describing the operation and results
6064	6064	7 of the program, including information concerning the number
6065	6065	8 and types of customers using the program, changes in
6066	6066	9 customers' energy use patterns, an assessment of the value of
6067	6067	10 the program to both participants and nonparticipants, and
6068	6068	11 recommendations concerning modification of the program and the
6069	6069	12 tariff or tariffs filed under this Section. This report shall
6070	6070	13 be filed by the electric utility with the Commission within 30
6071	6071	14 days after receipt and shall be available to the public on the
6072	6072	15 Commission's website.
6073	6073	16 (e) Once the tariff or tariffs has been in effect for 12
6074	6074	17 months, the Commission may, upon complaint, petition, or its
6075	6075	18 own initiative, open a proceeding to investigate whether
6076	6076	19 changes or modifications to the tariff or tariffs, program
6077	6077	20 administration and any other program design element is
6078	6078	21 necessary to achieve the goals described in subsection (a) and
6079	6079	22 to shifting usage away from periods where fossil fuels are
6080	6080	23 used to meet peak demand and realign usage to periods when
6081	6081	24 renewable generation is available. Such a proceeding may not
6082	6082	25 last more than 180 days from the date upon which the
6083	6083	26 investigation is opened by Commission order. Thereafter, the
6084	6084
6085	6085
6086	6086
6087	6087
6088	6088
6089	6089	SB3637 - 169 - LRB103 38841 CES 68978 b
6090	6090
6091	6091
6092	6092	SB3637- 170 -LRB103 38841 CES 68978 b SB3637 - 170 - LRB103 38841 CES 68978 b
6093	6093	SB3637 - 170 - LRB103 38841 CES 68978 b
6094	6094	1 Commission may, upon complaint, petition, or its own
6095	6095	2 initiative, open a proceeding to investigate changes or
6096	6096	3 modifications to the tariff or tariffs at any time the
6097	6097	4 Commission deems reasonable in order to achieve these
6098	6098	5 objectives.
6099	6099	6 (f) An electric utility shall be entitled to recover
6100	6100	7 reasonable costs incurred in complying with this Section, if
6101	6101	8 the recovery of the costs is fairly apportioned among its
6102	6102	9 residential customers.
6103	6103	10 (g) The electric utility's tariff or tariffs filed
6104	6104	11 pursuant to this Section shall be subject to the provisions of
6105	6105	12 Article IX of this Act insofar as they do not conflict with
6106	6106	13 this Section.
6107	6107	14 (h) This Section does not apply to any electric utility
6108	6108	15 providing service to 100,000 or fewer customers.
6109	6109	16 (220 ILCS 5/16-111.5)
6110	6110	17 Sec. 16-111.5. Provisions relating to procurement.
6111	6111	18 (a) An electric utility that on December 31, 2005 served
6112	6112	19 at least 100,000 customers in Illinois shall procure power and
6113	6113	20 energy for its eligible retail customers in accordance with
6114	6114	21 the applicable provisions set forth in Section 1-75 of the
6115	6115	22 Illinois Power Agency Act and this Section. Beginning with the
6116	6116	23 delivery year commencing on June 1, 2017, such electric
6117	6117	24 utility shall also procure zero emission credits from zero
6118	6118	25 emission facilities in accordance with the applicable
6119	6119
6120	6120
6121	6121
6122	6122
6123	6123
6124	6124	SB3637 - 170 - LRB103 38841 CES 68978 b
6125	6125
6126	6126
6127	6127	SB3637- 171 -LRB103 38841 CES 68978 b SB3637 - 171 - LRB103 38841 CES 68978 b
6128	6128	SB3637 - 171 - LRB103 38841 CES 68978 b
6129	6129	1 provisions set forth in Section 1-75 of the Illinois Power
6130	6130	2 Agency Act, and, for years beginning on or after June 1, 2017,
6131	6131	3 the utility shall procure renewable energy resources in
6132	6132	4 accordance with the applicable provisions set forth in Section
6133	6133	5 1-75 of the Illinois Power Agency Act and this Section.
6134	6134	6 Beginning with the delivery year commencing on June 1, 2022,
6135	6135	7 an electric utility serving over 3,000,000 customers shall
6136	6136	8 also procure carbon mitigation credits from carbon-free energy
6137	6137	9 resources in accordance with the applicable provisions set
6138	6138	10 forth in Section 1-75 of the Illinois Power Agency Act and this
6139	6139	11 Section. A small multi-jurisdictional electric utility that on
6140	6140	12 December 31, 2005 served less than 100,000 customers in
6141	6141	13 Illinois may elect to procure power and energy for all or a
6142	6142	14 portion of its eligible Illinois retail customers in
6143	6143	15 accordance with the applicable provisions set forth in this
6144	6144	16 Section and Section 1-75 of the Illinois Power Agency Act.
6145	6145	17 This Section shall not apply to a small multi-jurisdictional
6146	6146	18 utility until such time as a small multi-jurisdictional
6147	6147	19 utility requests the Illinois Power Agency to prepare a
6148	6148	20 procurement plan for its eligible retail customers. "Eligible
6149	6149	21 retail customers" for the purposes of this Section means those
6150	6150	22 retail customers that purchase power and energy from the
6151	6151	23 electric utility under fixed-price bundled service tariffs,
6152	6152	24 other than those retail customers whose service is declared or
6153	6153	25 deemed competitive under Section 16-113 and those other
6154	6154	26 customer groups specified in this Section, including
6155	6155
6156	6156
6157	6157
6158	6158
6159	6159
6160	6160	SB3637 - 171 - LRB103 38841 CES 68978 b
6161	6161
6162	6162
6163	6163	SB3637- 172 -LRB103 38841 CES 68978 b SB3637 - 172 - LRB103 38841 CES 68978 b
6164	6164	SB3637 - 172 - LRB103 38841 CES 68978 b
6165	6165	1 self-generating customers, customers electing hourly pricing,
6166	6166	2 or those customers who are otherwise ineligible for
6167	6167	3 fixed-price bundled tariff service. For those customers that
6168	6168	4 are excluded from the procurement plan's electric supply
6169	6169	5 service requirements, and the utility shall procure any supply
6170	6170	6 requirements, including capacity, ancillary services, and
6171	6171	7 hourly priced energy, in the applicable markets as needed to
6172	6172	8 serve those customers, provided that the utility may include
6173	6173	9 in its procurement plan load requirements for the load that is
6174	6174	10 associated with those retail customers whose service has been
6175	6175	11 declared or deemed competitive pursuant to Section 16-113 of
6176	6176	12 this Act to the extent that those customers are purchasing
6177	6177	13 power and energy during one of the transition periods
6178	6178	14 identified in subsection (b) of Section 16-113 of this Act.
6179	6179	15 (b) A procurement plan shall be prepared for each electric
6180	6180	16 utility consistent with the applicable requirements of the
6181	6181	17 Illinois Power Agency Act and this Section. For purposes of
6182	6182	18 this Section, Illinois electric utilities that are affiliated
6183	6183	19 by virtue of a common parent company are considered to be a
6184	6184	20 single electric utility. Small multi-jurisdictional utilities
6185	6185	21 may request a procurement plan for a portion of or all of its
6186	6186	22 Illinois load. Each procurement plan shall analyze the
6187	6187	23 projected balance of supply and demand for those retail
6188	6188	24 customers to be included in the plan's electric supply service
6189	6189	25 requirements over a 5-year period, with the first planning
6190	6190	26 year beginning on June 1 of the year following the year in
6191	6191
6192	6192
6193	6193
6194	6194
6195	6195
6196	6196	SB3637 - 172 - LRB103 38841 CES 68978 b
6197	6197
6198	6198
6199	6199	SB3637- 173 -LRB103 38841 CES 68978 b SB3637 - 173 - LRB103 38841 CES 68978 b
6200	6200	SB3637 - 173 - LRB103 38841 CES 68978 b
6201	6201	1 which the plan is filed. The plan shall specifically identify
6202	6202	2 the wholesale products to be procured following plan approval,
6203	6203	3 and shall follow all the requirements set forth in the Public
6204	6204	4 Utilities Act and all applicable State and federal laws,
6205	6205	5 statutes, rules, or regulations, as well as Commission orders.
6206	6206	6 Nothing in this Section precludes consideration of contracts
6207	6207	7 longer than 5 years and related forecast data. Unless
6208	6208	8 specified otherwise in this Section, in the procurement plan
6209	6209	9 or in the implementing tariff, any procurement occurring in
6210	6210	10 accordance with this plan shall be competitively bid through a
6211	6211	11 request for proposals process. Approval and implementation of
6212	6212	12 the procurement plan shall be subject to review and approval
6213	6213	13 by the Commission according to the provisions set forth in
6214	6214	14 this Section. A procurement plan shall include each of the
6215	6215	15 following components:
6216	6216	16 (1) Hourly load analysis. This analysis shall include:
6217	6217	17 (i) multi-year historical analysis of hourly
6218	6218	18 loads;
6219	6219	19 (ii) switching trends and competitive retail
6220	6220	20 market analysis;
6221	6221	21 (iii) known or projected changes to future loads;
6222	6222	22 and
6223	6223	23 (iv) growth forecasts by customer class.
6224	6224	24 (2) Analysis of the impact of any demand side and
6225	6225	25 renewable energy initiatives. This analysis shall include:
6226	6226	26 (i) the impact of demand response programs and
6227	6227
6228	6228
6229	6229
6230	6230
6231	6231
6232	6232	SB3637 - 173 - LRB103 38841 CES 68978 b
6233	6233
6234	6234
6235	6235	SB3637- 174 -LRB103 38841 CES 68978 b SB3637 - 174 - LRB103 38841 CES 68978 b
6236	6236	SB3637 - 174 - LRB103 38841 CES 68978 b
6237	6237	1 energy efficiency programs, both current and
6238	6238	2 projected; for small multi-jurisdictional utilities,
6239	6239	3 the impact of demand response and energy efficiency
6240	6240	4 programs approved pursuant to Section 8-408 of this
6241	6241	5 Act, both current and projected; and
6242	6242	6 (ii) supply side needs that are projected to be
6243	6243	7 offset by purchases of renewable energy resources, if
6244	6244	8 any.
6245	6245	9 (3) A plan for meeting the expected load requirements
6246	6246	10 that will not be met through preexisting contracts. This
6247	6247	11 plan shall include:
6248	6248	12 (i) definitions of the different Illinois retail
6249	6249	13 customer classes for which supply is being purchased;
6250	6250	14 (ii) the proposed mix of demand-response products
6251	6251	15 for which contracts will be executed during the next
6252	6252	16 year. For small multi-jurisdictional electric
6253	6253	17 utilities that on December 31, 2005 served fewer than
6254	6254	18 100,000 customers in Illinois, these shall be defined
6255	6255	19 as demand-response products offered in an energy
6256	6256	20 efficiency plan approved pursuant to Section 8-408 of
6257	6257	21 this Act. The cost-effective demand-response measures
6258	6258	22 shall be procured whenever the cost is lower than
6259	6259	23 procuring comparable capacity products, provided that
6260	6260	24 such products shall:
6261	6261	25 (A) be procured by a demand-response provider
6262	6262	26 from those retail customers included in the plan's
6263	6263
6264	6264
6265	6265
6266	6266
6267	6267
6268	6268	SB3637 - 174 - LRB103 38841 CES 68978 b
6269	6269
6270	6270
6271	6271	SB3637- 175 -LRB103 38841 CES 68978 b SB3637 - 175 - LRB103 38841 CES 68978 b
6272	6272	SB3637 - 175 - LRB103 38841 CES 68978 b
6273	6273	1 electric supply service requirements;
6274	6274	2 (B) at least satisfy the demand-response
6275	6275	3 requirements of the regional transmission
6276	6276	4 organization market in which the utility's service
6277	6277	5 territory is located, including, but not limited
6278	6278	6 to, any applicable capacity or dispatch
6279	6279	7 requirements;
6280	6280	8 (C) provide for customers' participation in
6281	6281	9 the stream of benefits produced by the
6282	6282	10 demand-response products;
6283	6283	11 (D) provide for reimbursement by the
6284	6284	12 demand-response provider of the utility for any
6285	6285	13 costs incurred as a result of the failure of the
6286	6286	14 supplier of such products to perform its
6287	6287	15 obligations thereunder; and
6288	6288	16 (E) meet the same credit requirements as apply
6289	6289	17 to suppliers of capacity, in the applicable
6290	6290	18 regional transmission organization market;
6291	6291	19 (iii) monthly forecasted system supply
6292	6292	20 requirements, including expected minimum, maximum, and
6293	6293	21 average values for the planning period;
6294	6294	22 (iv) the proposed mix and selection of standard
6295	6295	23 wholesale products for which contracts will be
6296	6296	24 executed during the next year, separately or in
6297	6297	25 combination, to meet that portion of its load
6298	6298	26 requirements not met through pre-existing contracts,
6299	6299
6300	6300
6301	6301
6302	6302
6303	6303
6304	6304	SB3637 - 175 - LRB103 38841 CES 68978 b
6305	6305
6306	6306
6307	6307	SB3637- 176 -LRB103 38841 CES 68978 b SB3637 - 176 - LRB103 38841 CES 68978 b
6308	6308	SB3637 - 176 - LRB103 38841 CES 68978 b
6309	6309	1 including but not limited to monthly 5 x 16 peak period
6310	6310	2 block energy, monthly off-peak wrap energy, monthly 7
6311	6311	3 x 24 energy, annual 5 x 16 energy, other standardized
6312	6312	4 energy or capacity products designed to provide
6313	6313	5 eligible retail customer benefits from commercially
6314	6314	6 deployed advanced technologies including but not
6315	6315	7 limited to high voltage direct current converter
6316	6316	8 stations, as such term is defined in Section 1-10 of
6317	6317	9 the Illinois Power Agency Act, whether or not such
6318	6318	10 product is currently available in wholesale markets,
6319	6319	11 annual off-peak wrap energy, annual 7 x 24 energy,
6320	6320	12 monthly capacity, annual capacity, peak load capacity
6321	6321	13 obligations, capacity purchase plan, and ancillary
6322	6322	14 services; however, nothing in this item (iv) precludes
6323	6323	15 consideration of long-term contracts with a length up
6324	6324	16 to and including 20 years for clean energy, as defined
6325	6325	17 in Section 1-10 of the Illinois Power Agency Act, with
6326	6326	18 an appropriate portion of the portfolio to be
6327	6327	19 allocated to such long-term contracts;
6328	6328	20 (v) proposed term structures for each wholesale
6329	6329	21 product type included in the proposed procurement plan
6330	6330	22 portfolio of products; and
6331	6331	23 (vi) an assessment of the price risk, load
6332	6332	24 uncertainty, and other factors that are associated
6333	6333	25 with the proposed procurement plan; this assessment,
6334	6334	26 to the extent possible, shall include an analysis of
6335	6335
6336	6336
6337	6337
6338	6338
6339	6339
6340	6340	SB3637 - 176 - LRB103 38841 CES 68978 b
6341	6341
6342	6342
6343	6343	SB3637- 177 -LRB103 38841 CES 68978 b SB3637 - 177 - LRB103 38841 CES 68978 b
6344	6344	SB3637 - 177 - LRB103 38841 CES 68978 b
6345	6345	1 the following factors: contract terms, time frames for
6346	6346	2 securing products or services, fuel costs, weather
6347	6347	3 patterns, transmission costs, market conditions, and
6348	6348	4 the governmental regulatory environment; the proposed
6349	6349	5 procurement plan shall also identify alternatives for
6350	6350	6 those portfolio measures that are identified as having
6351	6351	7 significant price risk and mitigation in the form of
6352	6352	8 additional retail customer and ratepayer price,
6353	6353	9 reliability, and environmental benefits from
6354	6354	10 standardized energy products delivered from
6355	6355	11 commercially deployed advanced technologies,
6356	6356	12 including, but not limited to, high voltage direct
6357	6357	13 current converter stations, as such term is defined in
6358	6358	14 Section 1-10 of the Illinois Power Agency Act, whether
6359	6359	15 or not such product is currently available in
6360	6360	16 wholesale markets; and.
6361	6361	17 (v) for procurement events beginning after May 31,
6362	6362	18 2025, consideration of whether products offered into
6363	6363	19 the procurement process are renewable energy
6364	6364	20 resources, as defined in Section 1-10 of the Illinois
6365	6365	21 Power Agency Act that might otherwise qualify for the
6366	6366	22 renewable portfolio standard described in
6367	6367	23 subparagraphs (c)(1)(I) and (c)(1)(J) of Section 1-75
6368	6368	24 of the Illinois Power Agency Act where such product or
6369	6369	25 products can be procured at or near the price of
6370	6370	26 nonrenewable energy after taking account of the social
6371	6371
6372	6372
6373	6373
6374	6374
6375	6375
6376	6376	SB3637 - 177 - LRB103 38841 CES 68978 b
6377	6377
6378	6378
6379	6379	SB3637- 178 -LRB103 38841 CES 68978 b SB3637 - 178 - LRB103 38841 CES 68978 b
6380	6380	SB3637 - 178 - LRB103 38841 CES 68978 b
6381	6381	1 cost of carbon as set forth in subparagraph (B) of
6382	6382	2 paragraph (1) of subsection (d-5) of Section 1-75 of
6383	6383	3 the Illinois Power Agency Act. The Agency shall
6384	6384	4 consider fuel volatility, long-term trends in
6385	6385	5 non-renewable energy resource pricing, and the
6386	6386	6 environmental benefits of renewable energy resources
6387	6387	7 when comparing products and may, in doing so, select
6388	6388	8 products comprised of renewable energy resources that
6389	6389	9 are at a higher fixed price over a longer duration.
6390	6390	10 Each product procured shall include all environmental
6391	6391	11 attributes, including, but not limited to, and
6392	6392	12 renewable energy credits, all as defined in Section
6393	6393	13 1-10 of the Illinois Power Agency Act, and all
6394	6394	14 credits, characteristics, benefits, emissions
6395	6395	15 reductions, offsets, and allowances, howsoever
6396	6396	16 entitled, attributable to the generation of the
6397	6397	17 product procured or its displacement of generation.
6398	6398	18 (4) Proposed procedures for balancing loads. The
6399	6399	19 procurement plan shall include, for load requirements
6400	6400	20 included in the procurement plan, the process for (i)
6401	6401	21 hourly balancing of supply and demand and (ii) the
6402	6402	22 criteria for portfolio re-balancing in the event of
6403	6403	23 significant shifts in load.
6404	6404	24 (5) Long-Term Renewable Resources Procurement Plan.
6405	6405	25 The Agency shall prepare a long-term renewable resources
6406	6406	26 procurement plan for the procurement of renewable energy
6407	6407
6408	6408
6409	6409
6410	6410
6411	6411
6412	6412	SB3637 - 178 - LRB103 38841 CES 68978 b
6413	6413
6414	6414
6415	6415	SB3637- 179 -LRB103 38841 CES 68978 b SB3637 - 179 - LRB103 38841 CES 68978 b
6416	6416	SB3637 - 179 - LRB103 38841 CES 68978 b
6417	6417	1 credits under Sections 1-56 and 1-75 of the Illinois Power
6418	6418	2 Agency Act for delivery beginning in the 2017 delivery
6419	6419	3 year.
6420	6420	4 (i) The initial long-term renewable resources
6421	6421	5 procurement plan and all subsequent revisions shall be
6422	6422	6 subject to review and approval by the Commission. For
6423	6423	7 the purposes of this Section, "delivery year" has the
6424	6424	8 same meaning as in Section 1-10 of the Illinois Power
6425	6425	9 Agency Act. For purposes of this Section, "Agency"
6426	6426	10 shall mean the Illinois Power Agency.
6427	6427	11 (ii) The long-term renewable resources planning
6428	6428	12 process shall be conducted as follows:
6429	6429	13 (A) Electric utilities shall provide a range
6430	6430	14 of load forecasts to the Illinois Power Agency
6431	6431	15 within 45 days of the Agency's request for
6432	6432	16 forecasts, which request shall specify the length
6433	6433	17 and conditions for the forecasts including, but
6434	6434	18 not limited to, the quantity of distributed
6435	6435	19 generation expected to be interconnected for each
6436	6436	20 year.
6437	6437	21 (B) The Agency shall publish for comment the
6438	6438	22 initial long-term renewable resources procurement
6439	6439	23 plan no later than 120 days after the effective
6440	6440	24 date of this amendatory Act of the 99th General
6441	6441	25 Assembly and shall review, and may revise, the
6442	6442	26 plan at least every 2 years thereafter. To the
6443	6443
6444	6444
6445	6445
6446	6446
6447	6447
6448	6448	SB3637 - 179 - LRB103 38841 CES 68978 b
6449	6449
6450	6450
6451	6451	SB3637- 180 -LRB103 38841 CES 68978 b SB3637 - 180 - LRB103 38841 CES 68978 b
6452	6452	SB3637 - 180 - LRB103 38841 CES 68978 b
6453	6453	1 extent practicable, the Agency shall review and
6454	6454	2 propose any revisions to the long-term renewable
6455	6455	3 energy resources procurement plan in conjunction
6456	6456	4 with the Agency's other planning and approval
6457	6457	5 processes conducted under this Section. The
6458	6458	6 initial long-term renewable resources procurement
6459	6459	7 plan shall:
6460	6460	8 (aa) Identify the procurement programs and
6461	6461	9 competitive procurement events consistent with
6462	6462	10 the applicable requirements of the Illinois
6463	6463	11 Power Agency Act and shall be designed to
6464	6464	12 achieve the goals set forth in subsection (c)
6465	6465	13 of Section 1-75 of that Act.
6466	6466	14 (bb) Include a schedule for procurements
6467	6467	15 for renewable energy credits from
6468	6468	16 utility-scale wind projects, utility-scale
6469	6469	17 solar projects, and brownfield site
6470	6470	18 photovoltaic projects consistent with
6471	6471	19 subparagraph (G) of paragraph (1) of
6472	6472	20 subsection (c) of Section 1-75 of the Illinois
6473	6473	21 Power Agency Act.
6474	6474	22 (cc) Identify the process whereby the
6475	6475	23 Agency will submit to the Commission for
6476	6476	24 review and approval the proposed contracts to
6477	6477	25 implement the programs required by such plan.
6478	6478	26 Copies of the initial long-term renewable
6479	6479
6480	6480
6481	6481
6482	6482
6483	6483
6484	6484	SB3637 - 180 - LRB103 38841 CES 68978 b
6485	6485
6486	6486
6487	6487	SB3637- 181 -LRB103 38841 CES 68978 b SB3637 - 181 - LRB103 38841 CES 68978 b
6488	6488	SB3637 - 181 - LRB103 38841 CES 68978 b
6489	6489	1 resources procurement plan and all subsequent
6490	6490	2 revisions shall be posted and made publicly
6491	6491	3 available on the Agency's and Commission's
6492	6492	4 websites, and copies shall also be provided to
6493	6493	5 each affected electric utility. An affected
6494	6494	6 utility and other interested parties shall have 45
6495	6495	7 days following the date of posting to provide
6496	6496	8 comment to the Agency on the initial long-term
6497	6497	9 renewable resources procurement plan and all
6498	6498	10 subsequent revisions. All comments submitted to
6499	6499	11 the Agency shall be specific, supported by data or
6500	6500	12 other detailed analyses, and, if objecting to all
6501	6501	13 or a portion of the procurement plan, accompanied
6502	6502	14 by specific alternative wording or proposals. All
6503	6503	15 comments shall be posted on the Agency's and
6504	6504	16 Commission's websites. During this 45-day comment
6505	6505	17 period, the Agency shall hold at least one public
6506	6506	18 hearing within each utility's service area that is
6507	6507	19 subject to the requirements of this paragraph (5)
6508	6508	20 for the purpose of receiving public comment.
6509	6509	21 Within 21 days following the end of the 45-day
6510	6510	22 review period, the Agency may revise the long-term
6511	6511	23 renewable resources procurement plan based on the
6512	6512	24 comments received and shall file the plan with the
6513	6513	25 Commission for review and approval.
6514	6514	26 (C) Within 14 days after the filing of the
6515	6515
6516	6516
6517	6517
6518	6518
6519	6519
6520	6520	SB3637 - 181 - LRB103 38841 CES 68978 b
6521	6521
6522	6522
6523	6523	SB3637- 182 -LRB103 38841 CES 68978 b SB3637 - 182 - LRB103 38841 CES 68978 b
6524	6524	SB3637 - 182 - LRB103 38841 CES 68978 b
6525	6525	1 initial long-term renewable resources procurement
6526	6526	2 plan or any subsequent revisions, any person
6527	6527	3 objecting to the plan may file an objection with
6528	6528	4 the Commission. Within 21 days after the filing of
6529	6529	5 the plan, the Commission shall determine whether a
6530	6530	6 hearing is necessary. The Commission shall enter
6531	6531	7 its order confirming or modifying the initial
6532	6532	8 long-term renewable resources procurement plan or
6533	6533	9 any subsequent revisions within 120 days after the
6534	6534	10 filing of the plan by the Illinois Power Agency.
6535	6535	11 (D) The Commission shall approve the initial
6536	6536	12 long-term renewable resources procurement plan and
6537	6537	13 any subsequent revisions, including expressly the
6538	6538	14 forecast used in the plan and taking into account
6539	6539	15 that funding will be limited to the amount of
6540	6540	16 revenues actually collected by the utilities, if
6541	6541	17 the Commission determines that the plan will
6542	6542	18 reasonably and prudently accomplish the
6543	6543	19 requirements of Section 1-56 and subsection (c) of
6544	6544	20 Section 1-75 of the Illinois Power Agency Act. The
6545	6545	21 Commission shall also approve the process for the
6546	6546	22 submission, review, and approval of the proposed
6547	6547	23 contracts to procure renewable energy credits or
6548	6548	24 implement the programs authorized by the
6549	6549	25 Commission pursuant to a long-term renewable
6550	6550	26 resources procurement plan approved under this
6551	6551
6552	6552
6553	6553
6554	6554
6555	6555
6556	6556	SB3637 - 182 - LRB103 38841 CES 68978 b
6557	6557
6558	6558
6559	6559	SB3637- 183 -LRB103 38841 CES 68978 b SB3637 - 183 - LRB103 38841 CES 68978 b
6560	6560	SB3637 - 183 - LRB103 38841 CES 68978 b
6561	6561	1 Section.
6562	6562	2 In approving any long-term renewable resources
6563	6563	3 procurement plan after the effective date of this
6564	6564	4 amendatory Act of the 102nd General Assembly, the
6565	6565	5 Commission shall approve or modify the Agency's
6566	6566	6 proposal for minimum equity standards pursuant to
6567	6567	7 subsection (c-10) of Section 1-75 of the Illinois
6568	6568	8 Power Agency Act. The Commission shall consider
6569	6569	9 any analysis performed by the Agency in developing
6570	6570	10 its proposal, including past performance,
6571	6571	11 availability of equity eligible contractors, and
6572	6572	12 availability of equity eligible persons at the
6573	6573	13 time the long-term renewable resources procurement
6574	6574	14 plan is approved.
6575	6575	15 (iii) The Agency or third parties contracted by
6576	6576	16 the Agency shall implement all programs authorized by
6577	6577	17 the Commission in an approved long-term renewable
6578	6578	18 resources procurement plan without further review and
6579	6579	19 approval by the Commission. Third parties shall not
6580	6580	20 begin implementing any programs or receive any payment
6581	6581	21 under this Section until the Commission has approved
6582	6582	22 the contract or contracts under the process authorized
6583	6583	23 by the Commission in item (D) of subparagraph (ii) of
6584	6584	24 paragraph (5) of this subsection (b) and the third
6585	6585	25 party and the Agency or utility, as applicable, have
6586	6586	26 executed the contract. For those renewable energy
6587	6587
6588	6588
6589	6589
6590	6590
6591	6591
6592	6592	SB3637 - 183 - LRB103 38841 CES 68978 b
6593	6593
6594	6594
6595	6595	SB3637- 184 -LRB103 38841 CES 68978 b SB3637 - 184 - LRB103 38841 CES 68978 b
6596	6596	SB3637 - 184 - LRB103 38841 CES 68978 b
6597	6597	1 credits subject to procurement through a competitive
6598	6598	2 bid process under the plan or under the initial
6599	6599	3 forward procurements for wind and solar resources
6600	6600	4 described in subparagraph (G) of paragraph (1) of
6601	6601	5 subsection (c) of Section 1-75 of the Illinois Power
6602	6602	6 Agency Act, the Agency shall follow the procurement
6603	6603	7 process specified in the provisions relating to
6604	6604	8 electricity procurement in subsections (e) through (i)
6605	6605	9 of this Section.
6606	6606	10 (iv) An electric utility shall recover its costs
6607	6607	11 associated with the procurement of renewable energy
6608	6608	12 credits under this Section and pursuant to subsection
6609	6609	13 (c-5) of Section 1-75 of the Illinois Power Agency Act
6610	6610	14 through an automatic adjustment clause tariff under
6611	6611	15 subsection (k) or a tariff pursuant to subsection
6612	6612	16 (i-5), as applicable, of Section 16-108 of this Act. A
6613	6613	17 utility shall not be required to advance any payment
6614	6614	18 or pay any amounts under this Section that exceed the
6615	6615	19 actual amount of revenues collected by the utility
6616	6616	20 under paragraph (6) of subsection (c) of Section 1-75
6617	6617	21 of the Illinois Power Agency Act, subsection (c-5) of
6618	6618	22 Section 1-75 of the Illinois Power Agency Act, and
6619	6619	23 subsection (k) or subsection (i-5), as applicable, of
6620	6620	24 Section 16-108 of this Act, and contracts executed
6621	6621	25 under this Section shall expressly incorporate this
6622	6622	26 limitation.
6623	6623
6624	6624
6625	6625
6626	6626
6627	6627
6628	6628	SB3637 - 184 - LRB103 38841 CES 68978 b
6629	6629
6630	6630
6631	6631	SB3637- 185 -LRB103 38841 CES 68978 b SB3637 - 185 - LRB103 38841 CES 68978 b
6632	6632	SB3637 - 185 - LRB103 38841 CES 68978 b
6633	6633	1 (v) For the public interest, safety, and welfare,
6634	6634	2 the Agency and the Commission may adopt rules to carry
6635	6635	3 out the provisions of this Section on an emergency
6636	6636	4 basis immediately following the effective date of this
6637	6637	5 amendatory Act of the 99th General Assembly.
6638	6638	6 (vi) On or before July 1 of each year, the
6639	6639	7 Commission shall hold an informal hearing for the
6640	6640	8 purpose of receiving comments on the prior year's
6641	6641	9 procurement process and any recommendations for
6642	6642	10 change.
6643	6643	11 (b-5) An electric utility that as of January 1, 2019
6644	6644	12 served more than 300,000 retail customers in this State shall
6645	6645	13 purchase renewable energy credits from new renewable energy
6646	6646	14 facilities constructed at or adjacent to the sites of
6647	6647	15 coal-fueled electric generating facilities in this State in
6648	6648	16 accordance with subsection (c-5) of Section 1-75 of the
6649	6649	17 Illinois Power Agency Act. Except as expressly provided in
6650	6650	18 this Section, the plans and procedures for such procurements
6651	6651	19 shall not be included in the procurement plans provided for in
6652	6652	20 this Section, but rather shall be conducted and implemented
6653	6653	21 solely in accordance with subsection (c-5) of Section 1-75 of
6654	6654	22 the Illinois Power Agency Act.
6655	6655	23 (b-10) Capacity procurement.
6656	6656	24 (1) Definitions. For purposes of this subsection:
6657	6657	25 "Applicable Local Resource Zone" means the Zone 4
6658	6658	26 Local Resource Zone as set forth in the MISO Business
6659	6659
6660	6660
6661	6661
6662	6662
6663	6663
6664	6664	SB3637 - 185 - LRB103 38841 CES 68978 b
6665	6665
6666	6666
6667	6667	SB3637- 186 -LRB103 38841 CES 68978 b SB3637 - 186 - LRB103 38841 CES 68978 b
6668	6668	SB3637 - 186 - LRB103 38841 CES 68978 b
6669	6669	1 Practices Manual 011 - Resource Adequacy, or any future
6670	6670	2 successor zone for the same geographic space, as
6671	6671	3 designated by MISO governing documents.
6672	6672	4 "Applicable locational deliverability area" means the
6673	6673	5 ComEd Locational Deliverability Area as set forth in the
6674	6674	6 PJM Manual, or any future successor area for the same
6675	6675	7 geographic space, as designated by PJM governing
6676	6676	8 documents.
6677	6677	9 "Electric cooperative" has the meaning given to that
6678	6678	10 term in Section 3-119.
6679	6679	11 "Fixed Resource Adequacy Plan", "Local Clearing
6680	6680	12 Requirement", "Local Resource Zone", "Planning Resource",
6681	6681	13 and "Planning Reserve Margin Requirement" have the
6682	6682	14 meanings given to those terms in the MISO Tariff,
6683	6683	15 including as they may apply to individual Load Serving
6684	6684	16 Entities, as applicable. For avoidance of doubt, these
6685	6685	17 terms shall be interpreted as multiple seasonal values
6686	6686	18 within a given delivery year if MISO's then-prevailing
6687	6687	19 resource adequacy construct has a seasonal component.
6688	6688	20 "Load Serving Entity" has the meaning given to that
6689	6689	21 term by the regional transmission organization where the
6690	6690	22 entity serves customers, either in the Midcontinent
6691	6691	23 Independent System Operator Tariff or PJM Interconnection,
6692	6692	24 LLC Reliability Assurance Agreement.
6693	6693	25 (c) The provisions of this subsection (c) shall not apply
6694	6694	26 to procurements conducted pursuant to subsection (c-5) of
6695	6695
6696	6696
6697	6697
6698	6698
6699	6699
6700	6700	SB3637 - 186 - LRB103 38841 CES 68978 b
6701	6701
6702	6702
6703	6703	SB3637- 187 -LRB103 38841 CES 68978 b SB3637 - 187 - LRB103 38841 CES 68978 b
6704	6704	SB3637 - 187 - LRB103 38841 CES 68978 b
6705	6705	1 Section 1-75 of the Illinois Power Agency Act. However, the
6706	6706	2 Agency may retain a procurement administrator to assist the
6707	6707	3 Agency in planning and carrying out the procurement events and
6708	6708	4 implementing the other requirements specified in such
6709	6709	5 subsection (c-5) of Section 1-75 of the Illinois Power Agency
6710	6710	6 Act, with the costs incurred by the Agency for the procurement
6711	6711	7 administrator to be recovered through fees charged to
6712	6712	8 applicants for selection to sell and deliver renewable energy
6713	6713	9 credits to electric utilities pursuant to subsection (c-5) of
6714	6714	10 Section 1-75 of the Illinois Power Agency Act. The procurement
6715	6715	11 process set forth in Section 1-75 of the Illinois Power Agency
6716	6716	12 Act and subsection (e) of this Section shall be administered
6717	6717	13 by a procurement administrator and monitored by a procurement
6718	6718	14 monitor.
6719	6719	15 (1) The procurement administrator shall:
6720	6720	16 (i) design the final procurement process in
6721	6721	17 accordance with Section 1-75 of the Illinois Power
6722	6722	18 Agency Act and subsection (e) of this Section
6723	6723	19 following Commission approval of the procurement plan;
6724	6724	20 (ii) develop benchmarks in accordance with
6725	6725	21 subsection (e)(3) to be used to evaluate bids; these
6726	6726	22 benchmarks shall be submitted to the Commission for
6727	6727	23 review and approval on a confidential basis prior to
6728	6728	24 the procurement event;
6729	6729	25 (iii) serve as the interface between the electric
6730	6730	26 utility and suppliers;
6731	6731
6732	6732
6733	6733
6734	6734
6735	6735
6736	6736	SB3637 - 187 - LRB103 38841 CES 68978 b
6737	6737
6738	6738
6739	6739	SB3637- 188 -LRB103 38841 CES 68978 b SB3637 - 188 - LRB103 38841 CES 68978 b
6740	6740	SB3637 - 188 - LRB103 38841 CES 68978 b
6741	6741	1 (iv) manage the bidder pre-qualification and
6742	6742	2 registration process;
6743	6743	3 (v) obtain the electric utilities' agreement to
6744	6744	4 the final form of all supply contracts and credit
6745	6745	5 collateral agreements;
6746	6746	6 (vi) administer the request for proposals process;
6747	6747	7 (vii) have the discretion to negotiate to
6748	6748	8 determine whether bidders are willing to lower the
6749	6749	9 price of bids that meet the benchmarks approved by the
6750	6750	10 Commission; any post-bid negotiations with bidders
6751	6751	11 shall be limited to price only and shall be completed
6752	6752	12 within 24 hours after opening the sealed bids and
6753	6753	13 shall be conducted in a fair and unbiased manner; in
6754	6754	14 conducting the negotiations, there shall be no
6755	6755	15 disclosure of any information derived from proposals
6756	6756	16 submitted by competing bidders; if information is
6757	6757	17 disclosed to any bidder, it shall be provided to all
6758	6758	18 competing bidders;
6759	6759	19 (viii) maintain confidentiality of supplier and
6760	6760	20 bidding information in a manner consistent with all
6761	6761	21 applicable laws, rules, regulations, and tariffs;
6762	6762	22 (ix) submit a confidential report to the
6763	6763	23 Commission recommending acceptance or rejection of
6764	6764	24 bids;
6765	6765	25 (x) notify the utility of contract counterparties
6766	6766	26 and contract specifics; and
6767	6767
6768	6768
6769	6769
6770	6770
6771	6771
6772	6772	SB3637 - 188 - LRB103 38841 CES 68978 b
6773	6773
6774	6774
6775	6775	SB3637- 189 -LRB103 38841 CES 68978 b SB3637 - 189 - LRB103 38841 CES 68978 b
6776	6776	SB3637 - 189 - LRB103 38841 CES 68978 b
6777	6777	1 (xi) administer related contingency procurement
6778	6778	2 events.
6779	6779	3 (2) The procurement monitor, who shall be retained by
6780	6780	4 the Commission, shall:
6781	6781	5 (i) monitor interactions among the procurement
6782	6782	6 administrator, suppliers, and utility;
6783	6783	7 (ii) monitor and report to the Commission on the
6784	6784	8 progress of the procurement process;
6785	6785	9 (iii) provide an independent confidential report
6786	6786	10 to the Commission regarding the results of the
6787	6787	11 procurement event;
6788	6788	12 (iv) assess compliance with the procurement plans
6789	6789	13 approved by the Commission for each utility that on
6790	6790	14 December 31, 2005 provided electric service to at
6791	6791	15 least 100,000 customers in Illinois and for each small
6792	6792	16 multi-jurisdictional utility that on December 31, 2005
6793	6793	17 served less than 100,000 customers in Illinois;
6794	6794	18 (v) preserve the confidentiality of supplier and
6795	6795	19 bidding information in a manner consistent with all
6796	6796	20 applicable laws, rules, regulations, and tariffs;
6797	6797	21 (vi) provide expert advice to the Commission and
6798	6798	22 consult with the procurement administrator regarding
6799	6799	23 issues related to procurement process design, rules,
6800	6800	24 protocols, and policy-related matters; and
6801	6801	25 (vii) consult with the procurement administrator
6802	6802	26 regarding the development and use of benchmark
6803	6803
6804	6804
6805	6805
6806	6806
6807	6807
6808	6808	SB3637 - 189 - LRB103 38841 CES 68978 b
6809	6809
6810	6810
6811	6811	SB3637- 190 -LRB103 38841 CES 68978 b SB3637 - 190 - LRB103 38841 CES 68978 b
6812	6812	SB3637 - 190 - LRB103 38841 CES 68978 b
6813	6813	1 criteria, standard form contracts, credit policies,
6814	6814	2 and bid documents.
6815	6815	3 (d) Except as provided in subsection (j), the planning
6816	6816	4 process shall be conducted as follows:
6817	6817	5 (1) Beginning in 2008, each Illinois utility procuring
6818	6818	6 power pursuant to this Section shall annually provide a
6819	6819	7 range of load forecasts to the Illinois Power Agency by
6820	6820	8 July 15 of each year, or such other date as may be required
6821	6821	9 by the Commission or Agency. The load forecasts shall
6822	6822	10 cover the 5-year procurement planning period for the next
6823	6823	11 procurement plan and shall include hourly data
6824	6824	12 representing a high-load, low-load, and expected-load
6825	6825	13 scenario for the load of those retail customers included
6826	6826	14 in the plan's electric supply service requirements. The
6827	6827	15 utility shall provide supporting data and assumptions for
6828	6828	16 each of the scenarios.
6829	6829	17 (2) Beginning in 2008, the Illinois Power Agency shall
6830	6830	18 prepare a procurement plan by August 15th of each year, or
6831	6831	19 such other date as may be required by the Commission. The
6832	6832	20 procurement plan shall identify the portfolio of
6833	6833	21 demand-response and power and energy products to be
6834	6834	22 procured. Cost-effective demand-response measures shall be
6835	6835	23 procured as set forth in item (iii) of subsection (b) of
6836	6836	24 this Section. Copies of the procurement plan shall be
6837	6837	25 posted and made publicly available on the Agency's and
6838	6838	26 Commission's websites, and copies shall also be provided
6839	6839
6840	6840
6841	6841
6842	6842
6843	6843
6844	6844	SB3637 - 190 - LRB103 38841 CES 68978 b
6845	6845
6846	6846
6847	6847	SB3637- 191 -LRB103 38841 CES 68978 b SB3637 - 191 - LRB103 38841 CES 68978 b
6848	6848	SB3637 - 191 - LRB103 38841 CES 68978 b
6849	6849	1 to each affected electric utility. An affected utility
6850	6850	2 shall have 30 days following the date of posting to
6851	6851	3 provide comment to the Agency on the procurement plan.
6852	6852	4 Other interested entities also may comment on the
6853	6853	5 procurement plan. All comments submitted to the Agency
6854	6854	6 shall be specific, supported by data or other detailed
6855	6855	7 analyses, and, if objecting to all or a portion of the
6856	6856	8 procurement plan, accompanied by specific alternative
6857	6857	9 wording or proposals. All comments shall be posted on the
6858	6858	10 Agency's and Commission's websites. During this 30-day
6859	6859	11 comment period, the Agency shall hold at least one public
6860	6860	12 hearing within each utility's service area for the purpose
6861	6861	13 of receiving public comment on the procurement plan.
6862	6862	14 Within 14 days following the end of the 30-day review
6863	6863	15 period, the Agency shall revise the procurement plan as
6864	6864	16 necessary based on the comments received and file the
6865	6865	17 procurement plan with the Commission and post the
6866	6866	18 procurement plan on the websites.
6867	6867	19 (3) Within 5 days after the filing of the procurement
6868	6868	20 plan, any person objecting to the procurement plan shall
6869	6869	21 file an objection with the Commission. Within 10 days
6870	6870	22 after the filing, the Commission shall determine whether a
6871	6871	23 hearing is necessary. The Commission shall enter its order
6872	6872	24 confirming or modifying the procurement plan within 90
6873	6873	25 days after the filing of the procurement plan by the
6874	6874	26 Illinois Power Agency.
6875	6875
6876	6876
6877	6877
6878	6878
6879	6879
6880	6880	SB3637 - 191 - LRB103 38841 CES 68978 b
6881	6881
6882	6882
6883	6883	SB3637- 192 -LRB103 38841 CES 68978 b SB3637 - 192 - LRB103 38841 CES 68978 b
6884	6884	SB3637 - 192 - LRB103 38841 CES 68978 b
6885	6885	1 (4) The Commission shall approve the procurement plan,
6886	6886	2 including expressly the forecast used in the procurement
6887	6887	3 plan, if the Commission determines that it will ensure
6888	6888	4 adequate, reliable, affordable, efficient, and
6889	6889	5 environmentally sustainable electric service at the lowest
6890	6890	6 total cost over time, taking into account any benefits of
6891	6891	7 price stability.
6892	6892	8 (4.5) The Commission shall review the Agency's
6893	6893	9 recommendations for the selection of applicants to enter
6894	6894	10 into long-term contracts for the sale and delivery of
6895	6895	11 renewable energy credits from new renewable energy
6896	6896	12 facilities to be constructed at or adjacent to the sites
6897	6897	13 of coal-fueled electric generating facilities in this
6898	6898	14 State in accordance with the provisions of subsection
6899	6899	15 (c-5) of Section 1-75 of the Illinois Power Agency Act,
6900	6900	16 and shall approve the Agency's recommendations if the
6901	6901	17 Commission determines that the applicants recommended by
6902	6902	18 the Agency for selection, the proposed new renewable
6903	6903	19 energy facilities to be constructed, the amounts of
6904	6904	20 renewable energy credits to be delivered pursuant to the
6905	6905	21 contracts, and the other terms of the contracts, are
6906	6906	22 consistent with the requirements of subsection (c-5) of
6907	6907	23 Section 1-75 of the Illinois Power Agency Act.
6908	6908	24 (e) The procurement process shall include each of the
6909	6909	25 following components:
6910	6910	26 (1) Solicitation, pre-qualification, and registration
6911	6911
6912	6912
6913	6913
6914	6914
6915	6915
6916	6916	SB3637 - 192 - LRB103 38841 CES 68978 b
6917	6917
6918	6918
6919	6919	SB3637- 193 -LRB103 38841 CES 68978 b SB3637 - 193 - LRB103 38841 CES 68978 b
6920	6920	SB3637 - 193 - LRB103 38841 CES 68978 b
6921	6921	1 of bidders. The procurement administrator shall
6922	6922	2 disseminate information to potential bidders to promote a
6923	6923	3 procurement event, notify potential bidders that the
6924	6924	4 procurement administrator may enter into a post-bid price
6925	6925	5 negotiation with bidders that meet the applicable
6926	6926	6 benchmarks, provide supply requirements, and otherwise
6927	6927	7 explain the competitive procurement process. In addition
6928	6928	8 to such other publication as the procurement administrator
6929	6929	9 determines is appropriate, this information shall be
6930	6930	10 posted on the Illinois Power Agency's and the Commission's
6931	6931	11 websites. The procurement administrator shall also
6932	6932	12 administer the prequalification process, including
6933	6933	13 evaluation of credit worthiness, compliance with
6934	6934	14 procurement rules, and agreement to the standard form
6935	6935	15 contract developed pursuant to paragraph (2) of this
6936	6936	16 subsection (e). The procurement administrator shall then
6937	6937	17 identify and register bidders to participate in the
6938	6938	18 procurement event.
6939	6939	19 (2) Standard contract forms and credit terms and
6940	6940	20 instruments. The procurement administrator, in
6941	6941	21 consultation with the utilities, the Commission, and other
6942	6942	22 interested parties and subject to Commission oversight,
6943	6943	23 shall develop and provide standard contract forms for the
6944	6944	24 supplier contracts that meet generally accepted industry
6945	6945	25 practices. Standard credit terms and instruments that meet
6946	6946	26 generally accepted industry practices shall be similarly
6947	6947
6948	6948
6949	6949
6950	6950
6951	6951
6952	6952	SB3637 - 193 - LRB103 38841 CES 68978 b
6953	6953
6954	6954
6955	6955	SB3637- 194 -LRB103 38841 CES 68978 b SB3637 - 194 - LRB103 38841 CES 68978 b
6956	6956	SB3637 - 194 - LRB103 38841 CES 68978 b
6957	6957	1 developed. The procurement administrator shall make
6958	6958	2 available to the Commission all written comments it
6959	6959	3 receives on the contract forms, credit terms, or
6960	6960	4 instruments. If the procurement administrator cannot reach
6961	6961	5 agreement with the applicable electric utility as to the
6962	6962	6 contract terms and conditions, the procurement
6963	6963	7 administrator must notify the Commission of any disputed
6964	6964	8 terms and the Commission shall resolve the dispute. The
6965	6965	9 terms of the contracts shall not be subject to negotiation
6966	6966	10 by winning bidders, and the bidders must agree to the
6967	6967	11 terms of the contract in advance so that winning bids are
6968	6968	12 selected solely on the basis of price.
6969	6969	13 (3) Establishment of a market-based price benchmark.
6970	6970	14 As part of the development of the procurement process, the
6971	6971	15 procurement administrator, in consultation with the
6972	6972	16 Commission staff, Agency staff, and the procurement
6973	6973	17 monitor, shall establish benchmarks for evaluating the
6974	6974	18 final prices in the contracts for each of the products
6975	6975	19 that will be procured through the procurement process. The
6976	6976	20 benchmarks shall be based on price data for similar
6977	6977	21 products for the same delivery period and same delivery
6978	6978	22 hub, or other delivery hubs after adjusting for that
6979	6979	23 difference. The price benchmarks may also be adjusted to
6980	6980	24 take into account differences between the information
6981	6981	25 reflected in the underlying data sources and the specific
6982	6982	26 products and procurement process being used to procure
6983	6983
6984	6984
6985	6985
6986	6986
6987	6987
6988	6988	SB3637 - 194 - LRB103 38841 CES 68978 b
6989	6989
6990	6990
6991	6991	SB3637- 195 -LRB103 38841 CES 68978 b SB3637 - 195 - LRB103 38841 CES 68978 b
6992	6992	SB3637 - 195 - LRB103 38841 CES 68978 b
6993	6993	1 power for the Illinois utilities. The benchmarks shall be
6994	6994	2 confidential but shall be provided to, and will be subject
6995	6995	3 to Commission review and approval, prior to a procurement
6996	6996	4 event.
6997	6997	5 (4) Request for proposals competitive procurement
6998	6998	6 process. The procurement administrator shall design and
6999	6999	7 issue a request for proposals to supply electricity in
7000	7000	8 accordance with each utility's procurement plan, as
7001	7001	9 approved by the Commission. The request for proposals
7002	7002	10 shall set forth a procedure for sealed, binding commitment
7003	7003	11 bidding with pay-as-bid settlement, and provision for
7004	7004	12 selection of bids on the basis of price.
7005	7005	13 (5) A plan for implementing contingencies in the event
7006	7006	14 of supplier default or failure of the procurement process
7007	7007	15 to fully meet the expected load requirement due to
7008	7008	16 insufficient supplier participation, Commission rejection
7009	7009	17 of results, or any other cause.
7010	7010	18 (i) Event of supplier default: In the event of
7011	7011	19 supplier default, the utility shall review the
7012	7012	20 contract of the defaulting supplier to determine if
7013	7013	21 the amount of supply is 200 megawatts or greater, and
7014	7014	22 if there are more than 60 days remaining of the
7015	7015	23 contract term. If both of these conditions are met,
7016	7016	24 and the default results in termination of the
7017	7017	25 contract, the utility shall immediately notify the
7018	7018	26 Illinois Power Agency that a request for proposals
7019	7019
7020	7020
7021	7021
7022	7022
7023	7023
7024	7024	SB3637 - 195 - LRB103 38841 CES 68978 b
7025	7025
7026	7026
7027	7027	SB3637- 196 -LRB103 38841 CES 68978 b SB3637 - 196 - LRB103 38841 CES 68978 b
7028	7028	SB3637 - 196 - LRB103 38841 CES 68978 b
7029	7029	1 must be issued to procure replacement power, and the
7030	7030	2 procurement administrator shall run an additional
7031	7031	3 procurement event. If the contracted supply of the
7032	7032	4 defaulting supplier is less than 200 megawatts or
7033	7033	5 there are less than 60 days remaining of the contract
7034	7034	6 term, the utility shall procure power and energy from
7035	7035	7 the applicable regional transmission organization
7036	7036	8 market, including ancillary services, capacity, and
7037	7037	9 day-ahead or real time energy, or both, for the
7038	7038	10 duration of the contract term to replace the
7039	7039	11 contracted supply; provided, however, that if a needed
7040	7040	12 product is not available through the regional
7041	7041	13 transmission organization market it shall be purchased
7042	7042	14 from the wholesale market.
7043	7043	15 (ii) Failure of the procurement process to fully
7044	7044	16 meet the expected load requirement: If the procurement
7045	7045	17 process fails to fully meet the expected load
7046	7046	18 requirement due to insufficient supplier participation
7047	7047	19 or due to a Commission rejection of the procurement
7048	7048	20 results, the procurement administrator, the
7049	7049	21 procurement monitor, and the Commission staff shall
7050	7050	22 meet within 10 days to analyze potential causes of low
7051	7051	23 supplier interest or causes for the Commission
7052	7052	24 decision. If changes are identified that would likely
7053	7053	25 result in increased supplier participation, or that
7054	7054	26 would address concerns causing the Commission to
7055	7055
7056	7056
7057	7057
7058	7058
7059	7059
7060	7060	SB3637 - 196 - LRB103 38841 CES 68978 b
7061	7061
7062	7062
7063	7063	SB3637- 197 -LRB103 38841 CES 68978 b SB3637 - 197 - LRB103 38841 CES 68978 b
7064	7064	SB3637 - 197 - LRB103 38841 CES 68978 b
7065	7065	1 reject the results of the prior procurement event, the
7066	7066	2 procurement administrator may implement those changes
7067	7067	3 and rerun the request for proposals process according
7068	7068	4 to a schedule determined by those parties and
7069	7069	5 consistent with Section 1-75 of the Illinois Power
7070	7070	6 Agency Act and this subsection. In any event, a new
7071	7071	7 request for proposals process shall be implemented by
7072	7072	8 the procurement administrator within 90 days after the
7073	7073	9 determination that the procurement process has failed
7074	7074	10 to fully meet the expected load requirement.
7075	7075	11 (iii) In all cases where there is insufficient
7076	7076	12 supply provided under contracts awarded through the
7077	7077	13 procurement process to fully meet the electric
7078	7078	14 utility's load requirement, the utility shall meet the
7079	7079	15 load requirement by procuring power and energy from
7080	7080	16 the applicable regional transmission organization
7081	7081	17 market, including ancillary services, capacity, and
7082	7082	18 day-ahead or real time energy, or both; provided,
7083	7083	19 however, that if a needed product is not available
7084	7084	20 through the regional transmission organization market
7085	7085	21 it shall be purchased from the wholesale market.
7086	7086	22 (6) The procurement processes described in this
7087	7087	23 subsection and in subsection (c-5) of Section 1-75 of the
7088	7088	24 Illinois Power Agency Act are exempt from the requirements
7089	7089	25 of the Illinois Procurement Code, pursuant to Section
7090	7090	26 20-10 of that Code.
7091	7091
7092	7092
7093	7093
7094	7094
7095	7095
7096	7096	SB3637 - 197 - LRB103 38841 CES 68978 b
7097	7097
7098	7098
7099	7099	SB3637- 198 -LRB103 38841 CES 68978 b SB3637 - 198 - LRB103 38841 CES 68978 b
7100	7100	SB3637 - 198 - LRB103 38841 CES 68978 b
7101	7101	1 (f) Within 2 business days after opening the sealed bids,
7102	7102	2 the procurement administrator shall submit a confidential
7103	7103	3 report to the Commission. The report shall contain the results
7104	7104	4 of the bidding for each of the products along with the
7105	7105	5 procurement administrator's recommendation for the acceptance
7106	7106	6 and rejection of bids based on the price benchmark criteria
7107	7107	7 and other factors observed in the process. The procurement
7108	7108	8 monitor also shall submit a confidential report to the
7109	7109	9 Commission within 2 business days after opening the sealed
7110	7110	10 bids. The report shall contain the procurement monitor's
7111	7111	11 assessment of bidder behavior in the process as well as an
7112	7112	12 assessment of the procurement administrator's compliance with
7113	7113	13 the procurement process and rules. The Commission shall review
7114	7114	14 the confidential reports submitted by the procurement
7115	7115	15 administrator and procurement monitor, and shall accept or
7116	7116	16 reject the recommendations of the procurement administrator
7117	7117	17 within 2 business days after receipt of the reports.
7118	7118	18 (g) Within 3 business days after the Commission decision
7119	7119	19 approving the results of a procurement event, the utility
7120	7120	20 shall enter into binding contractual arrangements with the
7121	7121	21 winning suppliers using the standard form contracts; except
7122	7122	22 that the utility shall not be required either directly or
7123	7123	23 indirectly to execute the contracts if a tariff that is
7124	7124	24 consistent with subsection (l) of this Section has not been
7125	7125	25 approved and placed into effect for that utility.
7126	7126	26 (h) For the procurement of standard wholesale products,
7127	7127
7128	7128
7129	7129
7130	7130
7131	7131
7132	7132	SB3637 - 198 - LRB103 38841 CES 68978 b
7133	7133
7134	7134
7135	7135	SB3637- 199 -LRB103 38841 CES 68978 b SB3637 - 199 - LRB103 38841 CES 68978 b
7136	7136	SB3637 - 199 - LRB103 38841 CES 68978 b
7137	7137	1 the names of the successful bidders and the load weighted
7138	7138	2 average of the winning bid prices for each contract type and
7139	7139	3 for each contract term shall be made available to the public at
7140	7140	4 the time of Commission approval of a procurement event. For
7141	7141	5 procurements conducted to meet the requirements of subsection
7142	7142	6 (b) of Section 1-56 or subsection (c) of Section 1-75 of the
7143	7143	7 Illinois Power Agency Act governed by the provisions of this
7144	7144	8 Section, the address and nameplate capacity of the new
7145	7145	9 renewable energy generating facility proposed by a winning
7146	7146	10 bidder shall also be made available to the public at the time
7147	7147	11 of Commission approval of a procurement event, along with the
7148	7148	12 business address and contact information for any winning
7149	7149	13 bidder. An estimate or approximation of the nameplate capacity
7150	7150	14 of the new renewable energy generating facility may be
7151	7151	15 disclosed if necessary to protect the confidentiality of
7152	7152	16 individual bid prices.
7153	7153	17 The Commission, the procurement monitor, the procurement
7154	7154	18 administrator, the Illinois Power Agency, and all participants
7155	7155	19 in the procurement process shall maintain the confidentiality
7156	7156	20 of all other supplier and bidding information in a manner
7157	7157	21 consistent with all applicable laws, rules, regulations, and
7158	7158	22 tariffs. Confidential information, including the confidential
7159	7159	23 reports submitted by the procurement administrator and
7160	7160	24 procurement monitor pursuant to subsection (f) of this
7161	7161	25 Section, shall not be made publicly available and shall not be
7162	7162	26 discoverable by any party in any proceeding, absent a
7163	7163
7164	7164
7165	7165
7166	7166
7167	7167
7168	7168	SB3637 - 199 - LRB103 38841 CES 68978 b
7169	7169
7170	7170
7171	7171	SB3637- 200 -LRB103 38841 CES 68978 b SB3637 - 200 - LRB103 38841 CES 68978 b
7172	7172	SB3637 - 200 - LRB103 38841 CES 68978 b
7173	7173	1 compelling demonstration of need, nor shall those reports be
7174	7174	2 admissible in any proceeding other than one for law
7175	7175	3 enforcement purposes.
7176	7176	4 (i) Within 2 business days after a Commission decision
7177	7177	5 approving the results of a procurement event or such other
7178	7178	6 date as may be required by the Commission from time to time,
7179	7179	7 the utility shall file for informational purposes with the
7180	7180	8 Commission its actual or estimated retail supply charges, as
7181	7181	9 applicable, by customer supply group reflecting the costs
7182	7182	10 associated with the procurement and computed in accordance
7183	7183	11 with the tariffs filed pursuant to subsection (l) of this
7184	7184	12 Section and approved by the Commission.
7185	7185	13 (j) Within 60 days following August 28, 2007 (the
7186	7186	14 effective date of Public Act 95-481), each electric utility
7187	7187	15 that on December 31, 2005 provided electric service to at
7188	7188	16 least 100,000 customers in Illinois shall prepare and file
7189	7189	17 with the Commission an initial procurement plan, which shall
7190	7190	18 conform in all material respects to the requirements of the
7191	7191	19 procurement plan set forth in subsection (b); provided,
7192	7192	20 however, that the Illinois Power Agency Act shall not apply to
7193	7193	21 the initial procurement plan prepared pursuant to this
7194	7194	22 subsection. The initial procurement plan shall identify the
7195	7195	23 portfolio of power and energy products to be procured and
7196	7196	24 delivered for the period June 2008 through May 2009, and shall
7197	7197	25 identify the proposed procurement administrator, who shall
7198	7198	26 have the same experience and expertise as is required of a
7199	7199
7200	7200
7201	7201
7202	7202
7203	7203
7204	7204	SB3637 - 200 - LRB103 38841 CES 68978 b
7205	7205
7206	7206
7207	7207	SB3637- 201 -LRB103 38841 CES 68978 b SB3637 - 201 - LRB103 38841 CES 68978 b
7208	7208	SB3637 - 201 - LRB103 38841 CES 68978 b
7209	7209	1 procurement administrator hired pursuant to Section 1-75 of
7210	7210	2 the Illinois Power Agency Act. Copies of the procurement plan
7211	7211	3 shall be posted and made publicly available on the
7212	7212	4 Commission's website. The initial procurement plan may include
7213	7213	5 contracts for renewable resources that extend beyond May 2009.
7214	7214	6 (i) Within 14 days following filing of the initial
7215	7215	7 procurement plan, any person may file a detailed objection
7216	7216	8 with the Commission contesting the procurement plan
7217	7217	9 submitted by the electric utility. All objections to the
7218	7218	10 electric utility's plan shall be specific, supported by
7219	7219	11 data or other detailed analyses. The electric utility may
7220	7220	12 file a response to any objections to its procurement plan
7221	7221	13 within 7 days after the date objections are due to be
7222	7222	14 filed. Within 7 days after the date the utility's response
7223	7223	15 is due, the Commission shall determine whether a hearing
7224	7224	16 is necessary. If it determines that a hearing is
7225	7225	17 necessary, it shall require the hearing to be completed
7226	7226	18 and issue an order on the procurement plan within 60 days
7227	7227	19 after the filing of the procurement plan by the electric
7228	7228	20 utility.
7229	7229	21 (ii) The order shall approve or modify the procurement
7230	7230	22 plan, approve an independent procurement administrator,
7231	7231	23 and approve or modify the electric utility's tariffs that
7232	7232	24 are proposed with the initial procurement plan. The
7233	7233	25 Commission shall approve the procurement plan if the
7234	7234	26 Commission determines that it will ensure adequate,
7235	7235
7236	7236
7237	7237
7238	7238
7239	7239
7240	7240	SB3637 - 201 - LRB103 38841 CES 68978 b
7241	7241
7242	7242
7243	7243	SB3637- 202 -LRB103 38841 CES 68978 b SB3637 - 202 - LRB103 38841 CES 68978 b
7244	7244	SB3637 - 202 - LRB103 38841 CES 68978 b
7245	7245	1 reliable, affordable, efficient, and environmentally
7246	7246	2 sustainable electric service at the lowest total cost over
7247	7247	3 time, taking into account any benefits of price stability.
7248	7248	4 (k) (Blank).
7249	7249	5 (k-5) (Blank).
7250	7250	6 (l) An electric utility shall recover its costs incurred
7251	7251	7 under this Section and subsection (c-5) of Section 1-75 of the
7252	7252	8 Illinois Power Agency Act, including, but not limited to, the
7253	7253	9 costs of procuring power and energy demand-response resources
7254	7254	10 under this Section and its costs for purchasing renewable
7255	7255	11 energy credits pursuant to subsection (c-5) of Section 1-75 of
7256	7256	12 the Illinois Power Agency Act. The utility shall file with the
7257	7257	13 initial procurement plan its proposed tariffs through which
7258	7258	14 its costs of procuring power that are incurred pursuant to a
7259	7259	15 Commission-approved procurement plan and those other costs
7260	7260	16 identified in this subsection (l), will be recovered. The
7261	7261	17 tariffs shall include a formula rate or charge designed to
7262	7262	18 pass through both the costs incurred by the utility in
7263	7263	19 procuring a supply of electric power and energy for the
7264	7264	20 applicable customer classes with no mark-up or return on the
7265	7265	21 price paid by the utility for that supply, plus any just and
7266	7266	22 reasonable costs that the utility incurs in arranging and
7267	7267	23 providing for the supply of electric power and energy. The
7268	7268	24 formula rate or charge shall also contain provisions that
7269	7269	25 ensure that its application does not result in over or under
7270	7270	26 recovery due to changes in customer usage and demand patterns,
7271	7271
7272	7272
7273	7273
7274	7274
7275	7275
7276	7276	SB3637 - 202 - LRB103 38841 CES 68978 b
7277	7277
7278	7278
7279	7279	SB3637- 203 -LRB103 38841 CES 68978 b SB3637 - 203 - LRB103 38841 CES 68978 b
7280	7280	SB3637 - 203 - LRB103 38841 CES 68978 b
7281	7281	1 and that provide for the correction, on at least an annual
7282	7282	2 basis, of any accounting errors that may occur. A utility
7283	7283	3 shall recover through the tariff all reasonable costs incurred
7284	7284	4 to implement or comply with any procurement plan that is
7285	7285	5 developed and put into effect pursuant to Section 1-75 of the
7286	7286	6 Illinois Power Agency Act and this Section, and for the
7287	7287	7 procurement of renewable energy credits pursuant to subsection
7288	7288	8 (c-5) of Section 1-75 of the Illinois Power Agency Act,
7289	7289	9 including any fees assessed by the Illinois Power Agency,
7290	7290	10 costs associated with load balancing, and contingency plan
7291	7291	11 costs. The electric utility shall also recover its full costs
7292	7292	12 of procuring electric supply for which it contracted before
7293	7293	13 the effective date of this Section in conjunction with the
7294	7294	14 provision of full requirements service under fixed-price
7295	7295	15 bundled service tariffs subsequent to December 31, 2006. All
7296	7296	16 such costs shall be deemed to have been prudently incurred.
7297	7297	17 The pass-through tariffs that are filed and approved pursuant
7298	7298	18 to this Section shall not be subject to review under, or in any
7299	7299	19 way limited by, Section 16-111(i) of this Act. All of the costs
7300	7300	20 incurred by the electric utility associated with the purchase
7301	7301	21 of zero emission credits in accordance with subsection (d-5)
7302	7302	22 of Section 1-75 of the Illinois Power Agency Act, all costs
7303	7303	23 incurred by the electric utility associated with the purchase
7304	7304	24 of carbon mitigation credits in accordance with subsection
7305	7305	25 (d-10) of Section 1-75 of the Illinois Power Agency Act, and,
7306	7306	26 beginning June 1, 2017, all of the costs incurred by the
7307	7307
7308	7308
7309	7309
7310	7310
7311	7311
7312	7312	SB3637 - 203 - LRB103 38841 CES 68978 b
7313	7313
7314	7314
7315	7315	SB3637- 204 -LRB103 38841 CES 68978 b SB3637 - 204 - LRB103 38841 CES 68978 b
7316	7316	SB3637 - 204 - LRB103 38841 CES 68978 b
7317	7317	1 electric utility associated with the purchase of renewable
7318	7318	2 energy resources in accordance with Sections 1-56 and 1-75 of
7319	7319	3 the Illinois Power Agency Act, and all of the costs incurred by
7320	7320	4 the electric utility in purchasing renewable energy credits in
7321	7321	5 accordance with subsection (c-5) of Section 1-75 of the
7322	7322	6 Illinois Power Agency Act, shall be recovered through the
7323	7323	7 electric utility's tariffed charges applicable to all of its
7324	7324	8 retail customers, as specified in subsection (k) or subsection
7325	7325	9 (i-5), as applicable, of Section 16-108 of this Act, and shall
7326	7326	10 not be recovered through the electric utility's tariffed
7327	7327	11 charges for electric power and energy supply to its eligible
7328	7328	12 retail customers.
7329	7329	13 (m) The Commission has the authority to adopt rules to
7330	7330	14 carry out the provisions of this Section. For the public
7331	7331	15 interest, safety, and welfare, the Commission also has
7332	7332	16 authority to adopt rules to carry out the provisions of this
7333	7333	17 Section on an emergency basis immediately following August 28,
7334	7334	18 2007 (the effective date of Public Act 95-481).
7335	7335	19 (n) Notwithstanding any other provision of this Act, any
7336	7336	20 affiliated electric utilities that submit a single procurement
7337	7337	21 plan covering their combined needs may procure for those
7338	7338	22 combined needs in conjunction with that plan, and may enter
7339	7339	23 jointly into power supply contracts, purchases, and other
7340	7340	24 procurement arrangements, and allocate capacity and energy and
7341	7341	25 cost responsibility therefor among themselves in proportion to
7342	7342	26 their requirements.
7343	7343
7344	7344
7345	7345
7346	7346
7347	7347
7348	7348	SB3637 - 204 - LRB103 38841 CES 68978 b
7349	7349
7350	7350
7351	7351	SB3637- 205 -LRB103 38841 CES 68978 b SB3637 - 205 - LRB103 38841 CES 68978 b
7352	7352	SB3637 - 205 - LRB103 38841 CES 68978 b
7353	7353	1 (o) On or before June 1 of each year, the Commission shall
7354	7354	2 hold an informal hearing for the purpose of receiving comments
7355	7355	3 on the prior year's procurement process and any
7356	7356	4 recommendations for change.
7357	7357	5 (p) An electric utility subject to this Section may
7358	7358	6 propose to invest, lease, own, or operate an electric
7359	7359	7 generation facility as part of its procurement plan, provided
7360	7360	8 the utility demonstrates that such facility is the least-cost
7361	7361	9 option to provide electric service to those retail customers
7362	7362	10 included in the plan's electric supply service requirements.
7363	7363	11 If the facility is shown to be the least-cost option and is
7364	7364	12 included in a procurement plan prepared in accordance with
7365	7365	13 Section 1-75 of the Illinois Power Agency Act and this
7366	7366	14 Section, then the electric utility shall make a filing
7367	7367	15 pursuant to Section 8-406 of this Act, and may request of the
7368	7368	16 Commission any statutory relief required thereunder. If the
7369	7369	17 Commission grants all of the necessary approvals for the
7370	7370	18 proposed facility, such supply shall thereafter be considered
7371	7371	19 as a pre-existing contract under subsection (b) of this
7372	7372	20 Section. The Commission shall in any order approving a
7373	7373	21 proposal under this subsection specify how the utility will
7374	7374	22 recover the prudently incurred costs of investing in, leasing,
7375	7375	23 owning, or operating such generation facility through just and
7376	7376	24 reasonable rates charged to those retail customers included in
7377	7377	25 the plan's electric supply service requirements. Cost recovery
7378	7378	26 for facilities included in the utility's procurement plan
7379	7379
7380	7380
7381	7381
7382	7382
7383	7383
7384	7384	SB3637 - 205 - LRB103 38841 CES 68978 b
7385	7385
7386	7386
7387	7387	SB3637- 206 -LRB103 38841 CES 68978 b SB3637 - 206 - LRB103 38841 CES 68978 b
7388	7388	SB3637 - 206 - LRB103 38841 CES 68978 b
7389	7389	1 pursuant to this subsection shall not be subject to review
7390	7390	2 under or in any way limited by the provisions of Section
7391	7391	3 16-111(i) of this Act. Nothing in this Section is intended to
7392	7392	4 prohibit a utility from filing for a fuel adjustment clause as
7393	7393	5 is otherwise permitted under Section 9-220 of this Act.
7394	7394	6 (q) If the Illinois Power Agency filed with the
7395	7395	7 Commission, under Section 16-111.5 of this Act, its proposed
7396	7396	8 procurement plan for the period commencing June 1, 2017, and
7397	7397	9 the Commission has not yet entered its final order approving
7398	7398	10 the plan on or before the effective date of this amendatory Act
7399	7399	11 of the 99th General Assembly, then the Illinois Power Agency
7400	7400	12 shall file a notice of withdrawal with the Commission, after
7401	7401	13 the effective date of this amendatory Act of the 99th General
7402	7402	14 Assembly, to withdraw the proposed procurement of renewable
7403	7403	15 energy resources to be approved under the plan, other than the
7404	7404	16 procurement of renewable energy credits from distributed
7405	7405	17 renewable energy generation devices using funds previously
7406	7406	18 collected from electric utilities' retail customers that take
7407	7407	19 service pursuant to electric utilities' hourly pricing tariff
7408	7408	20 or tariffs and, for an electric utility that serves less than
7409	7409	21 100,000 retail customers in the State, other than the
7410	7410	22 procurement of renewable energy credits from distributed
7411	7411	23 renewable energy generation devices. Upon receipt of the
7412	7412	24 notice, the Commission shall enter an order that approves the
7413	7413	25 withdrawal of the proposed procurement of renewable energy
7414	7414	26 resources from the plan. The initially proposed procurement of
7415	7415
7416	7416
7417	7417
7418	7418
7419	7419
7420	7420	SB3637 - 206 - LRB103 38841 CES 68978 b
7421	7421
7422	7422
7423	7423	SB3637- 207 -LRB103 38841 CES 68978 b SB3637 - 207 - LRB103 38841 CES 68978 b
7424	7424	SB3637 - 207 - LRB103 38841 CES 68978 b
7425	7425	1 renewable energy resources shall not be approved or be the
7426	7426	2 subject of any further hearing, investigation, proceeding, or
7427	7427	3 order of any kind.
7428	7428	4 This amendatory Act of the 99th General Assembly preempts
7429	7429	5 and supersedes any order entered by the Commission that
7430	7430	6 approved the Illinois Power Agency's procurement plan for the
7431	7431	7 period commencing June 1, 2017, to the extent it is
7432	7432	8 inconsistent with the provisions of this amendatory Act of the
7433	7433	9 99th General Assembly. To the extent any previously entered
7434	7434	10 order approved the procurement of renewable energy resources,
7435	7435	11 the portion of that order approving the procurement shall be
7436	7436	12 void, other than the procurement of renewable energy credits
7437	7437	13 from distributed renewable energy generation devices using
7438	7438	14 funds previously collected from electric utilities' retail
7439	7439	15 customers that take service under electric utilities' hourly
7440	7440	16 pricing tariff or tariffs and, for an electric utility that
7441	7441	17 serves less than 100,000 retail customers in the State, other
7442	7442	18 than the procurement of renewable energy credits for
7443	7443	19 distributed renewable energy generation devices.
7444	7444	20 (Source: P.A. 102-662, eff. 9-15-21.)
7445	7445	21 (220 ILCS 5/16-115A)
7446	7446	22 Sec. 16-115A. Obligations of alternative retail electric
7447	7447	23 suppliers.
7448	7448	24 (a) An alternative retail electric supplier:
7449	7449	25 (i) shall comply with the requirements imposed on
7450	7450
7451	7451
7452	7452
7453	7453
7454	7454
7455	7455	SB3637 - 207 - LRB103 38841 CES 68978 b
7456	7456
7457	7457
7458	7458	SB3637- 208 -LRB103 38841 CES 68978 b SB3637 - 208 - LRB103 38841 CES 68978 b
7459	7459	SB3637 - 208 - LRB103 38841 CES 68978 b
7460	7460	1 public utilities by Sections 8-201 through 8-207, 8-301,
7461	7461	2 8-505 and 8-507 of this Act, to the extent that these
7462	7462	3 Sections have application to the services being offered by
7463	7463	4 the alternative retail electric supplier;
7464	7464	5 (ii) shall continue to comply with the requirements
7465	7465	6 for certification stated in subsection (d) of Section
7466	7466	7 16-115;
7467	7467	8 (iii) by May 31, 2020 and every June 30 thereafter,
7468	7468	9 shall submit to the Commission and the Office of the
7469	7469	10 Attorney General the rates the retail electric supplier
7470	7470	11 charged to residential customers in the prior year,
7471	7471	12 including each distinct rate charged and whether the rate
7472	7472	13 was a fixed or variable rate, the basis for the variable
7473	7473	14 rate, and any fees charged in addition to the supply rate,
7474	7474	15 including monthly fees, flat fees, or other service
7475	7475	16 charges; and
7476	7476	17 (iv) shall make publicly available on its website,
7477	7477	18 without the need for a customer login, rate information
7478	7478	19 for all of its variable, time-of-use, and fixed rate
7479	7479	20 contracts currently available to residential customers,
7480	7480	21 including, but not limited to, fixed monthly charges,
7481	7481	22 early termination fees, and kilowatt-hour charges; and
7482	7482	23 (v) shall retire all renewable energy credits, as
7483	7483	24 defined in Section 1-10 of the Illinois Power Agency Act,
7484	7484	25 and any other environmental attributes of the energy
7485	7485	26 supply procured from renewable energy resources in
7486	7486
7487	7487
7488	7488
7489	7489
7490	7490
7491	7491	SB3637 - 208 - LRB103 38841 CES 68978 b
7492	7492
7493	7493
7494	7494	SB3637- 209 -LRB103 38841 CES 68978 b SB3637 - 209 - LRB103 38841 CES 68978 b
7495	7495	SB3637 - 209 - LRB103 38841 CES 68978 b
7496	7496	1 compliance with subsection (h) of this Section.
7497	7497	2 (b) An alternative retail electric supplier shall obtain
7498	7498	3 verifiable authorization from a customer, in a form or manner
7499	7499	4 approved by the Commission consistent with Section 2EE of the
7500	7500	5 Consumer Fraud and Deceptive Business Practices Act, before
7501	7501	6 the customer is switched from another supplier.
7502	7502	7 (c) No alternative retail electric supplier, or electric
7503	7503	8 utility other than the electric utility in whose service area
7504	7504	9 a customer is located, shall (i) enter into or employ any
7505	7505	10 arrangements which have the effect of preventing a retail
7506	7506	11 customer with a maximum electrical demand of less than one
7507	7507	12 megawatt from having access to the services of the electric
7508	7508	13 utility in whose service area the customer is located or (ii)
7509	7509	14 charge retail customers for such access. This subsection shall
7510	7510	15 not be construed to prevent an arms-length agreement between a
7511	7511	16 supplier and a retail customer that sets a term of service,
7512	7512	17 notice period for terminating service and provisions governing
7513	7513	18 early termination through a tariff or contract as allowed by
7514	7514	19 Section 16-119.
7515	7515	20 (d) An alternative retail electric supplier that is
7516	7516	21 certified to serve residential or small commercial retail
7517	7517	22 customers shall not:
7518	7518	23 (1) deny service to a customer or group of customers
7519	7519	24 nor establish any differences as to prices, terms,
7520	7520	25 conditions, services, products, facilities, or in any
7521	7521	26 other respect, whereby such denial or differences are
7522	7522
7523	7523
7524	7524
7525	7525
7526	7526
7527	7527	SB3637 - 209 - LRB103 38841 CES 68978 b
7528	7528
7529	7529
7530	7530	SB3637- 210 -LRB103 38841 CES 68978 b SB3637 - 210 - LRB103 38841 CES 68978 b
7531	7531	SB3637 - 210 - LRB103 38841 CES 68978 b
7532	7532	1 based upon race, gender or income, except as provided in
7533	7533	2 Section 16-115E.
7534	7534	3 (2) deny service to a customer or group of customers
7535	7535	4 based on locality nor establish any unreasonable
7536	7536	5 difference as to prices, terms, conditions, services,
7537	7537	6 products, or facilities as between localities.
7538	7538	7 (3) warrant that it has a residential customer or
7539	7539	8 small commercial retail customer's express consent
7540	7540	9 agreement to access interval data as described in
7541	7541	10 subsection (b) of Section 16-122, unless the alternative
7542	7542	11 retail electric supplier has:
7543	7543	12 (A) disclosed to the consumer at the outset of the
7544	7544	13 offer that the alternative retail electric supplier
7545	7545	14 will access the consumer's interval data from the
7546	7546	15 consumer's utility with the consumer's express
7547	7547	16 agreement and the consumer's option to refuse to
7548	7548	17 provide express agreement to access the consumer's
7549	7549	18 interval data; and
7550	7550	19 (B) obtained the consumer's express agreement for
7551	7551	20 the alternative retail electric supplier to access the
7552	7552	21 consumer's interval data from the consumer's utility
7553	7553	22 in a separate letter of agency, a distinct response to
7554	7554	23 a third-party verification, or as a separate
7555	7555	24 affirmative consent during a recorded enrollment
7556	7556	25 initiated by the consumer. The disclosure by the
7557	7557	26 alternative retail electric supplier to the consumer
7558	7558
7559	7559
7560	7560
7561	7561
7562	7562
7563	7563	SB3637 - 210 - LRB103 38841 CES 68978 b
7564	7564
7565	7565
7566	7566	SB3637- 211 -LRB103 38841 CES 68978 b SB3637 - 211 - LRB103 38841 CES 68978 b
7567	7567	SB3637 - 211 - LRB103 38841 CES 68978 b
7568	7568	1 in this Section shall be conducted in, translated
7569	7569	2 into, and provided in a language in which the consumer
7570	7570	3 subject to the disclosure is able to understand and
7571	7571	4 communicate.
7572	7572	5 (4) release, sell, license, or otherwise disclose any
7573	7573	6 customer interval data obtained under Section 16-122 to
7574	7574	7 any third person except as provided for in Section 16-122
7575	7575	8 and paragraphs (1) through (4) of subsection (d-5) of
7576	7576	9 Section 2EE of the Consumer Fraud and Deceptive Business
7577	7577	10 Practices Act.
7578	7578	11 (e) An alternative retail electric supplier shall comply
7579	7579	12 with the following requirements with respect to the marketing,
7580	7580	13 offering and provision of products or services to residential
7581	7581	14 and small commercial retail customers:
7582	7582	15 (i) All marketing materials, including, but not
7583	7583	16 limited to, electronic marketing materials, in-person
7584	7584	17 solicitations, and telephone solicitations, shall contain
7585	7585	18 information that adequately discloses the prices, terms,
7586	7586	19 and conditions of the products or services that the
7587	7587	20 alternative retail electric supplier is offering or
7588	7588	21 selling to the customer and shall disclose the current
7589	7589	22 utility electric supply price to compare applicable at the
7590	7590	23 time the alternative retail electric supplier is offering
7591	7591	24 or selling the products or services to the customer and
7592	7592	25 shall disclose the date on which the utility electric
7593	7593	26 supply price to compare became effective and the date on
7594	7594
7595	7595
7596	7596
7597	7597
7598	7598
7599	7599	SB3637 - 211 - LRB103 38841 CES 68978 b
7600	7600
7601	7601
7602	7602	SB3637- 212 -LRB103 38841 CES 68978 b SB3637 - 212 - LRB103 38841 CES 68978 b
7603	7603	SB3637 - 212 - LRB103 38841 CES 68978 b
7604	7604	1 which it will expire. The utility electric supply price to
7605	7605	2 compare shall be the sum of the electric supply charge and
7606	7606	3 the transmission services charge and shall not include the
7607	7607	4 purchased electricity adjustment. The disclosure shall
7608	7608	5 include a statement that the price to compare does not
7609	7609	6 include the purchased electricity adjustment, and, if
7610	7610	7 applicable, the range of the purchased electricity
7611	7611	8 adjustment. All marketing materials, including, but not
7612	7612	9 limited to, electronic marketing materials, in-person
7613	7613	10 solicitations, and telephone solicitations, shall include
7614	7614	11 the following statement:
7615	7615	12 "(Name of the alternative retail electric
7616	7616	13 supplier) is not the same entity as your electric
7617	7617	14 delivery company. You are not required to enroll with
7618	7618	15 (name of alternative retail electric supplier).
7619	7619	16 Beginning on (effective date), the electric supply
7620	7620	17 price to compare is (price in cents per kilowatt
7621	7621	18 hour). The electric utility electric supply price will
7622	7622	19 expire on (expiration date). The utility electric
7623	7623	20 supply price to compare does not include the purchased
7624	7624	21 electricity adjustment factor. For more information go
7625	7625	22 to the Illinois Commerce Commission's free website at
7626	7626	23 www.pluginillinois.org.".
7627	7627	24 If applicable, the statement shall also include the
7628	7628	25 following statement:
7629	7629	26 "The purchased electricity adjustment factor may
7630	7630
7631	7631
7632	7632
7633	7633
7634	7634
7635	7635	SB3637 - 212 - LRB103 38841 CES 68978 b
7636	7636
7637	7637
7638	7638	SB3637- 213 -LRB103 38841 CES 68978 b SB3637 - 213 - LRB103 38841 CES 68978 b
7639	7639	SB3637 - 213 - LRB103 38841 CES 68978 b
7640	7640	1 range between +.5 cents and -.5 cents per kilowatt
7641	7641	2 hour.".
7642	7642	3 This paragraph (i) does not apply to goodwill or
7643	7643	4 institutional advertising.
7644	7644	5 (ii) Before any customer is switched from another
7645	7645	6 supplier, the alternative retail electric supplier shall
7646	7646	7 give the customer written information that adequately
7647	7647	8 discloses, in plain language, the prices, terms and
7648	7648	9 conditions of the products and services being offered and
7649	7649	10 sold to the customer. This written information shall be
7650	7650	11 provided in a language in which the customer subject to
7651	7651	12 the marketing or solicitation is able to understand and
7652	7652	13 communicate, and the alternative retail electric supplier
7653	7653	14 shall not switch a customer who is unable to understand
7654	7654	15 and communicate in a language in which the marketing or
7655	7655	16 solicitation was conducted. The alternative retail
7656	7656	17 electric supplier shall comply with Section 2N of the
7657	7657	18 Consumer Fraud and Deceptive Business Practices Act.
7658	7658	19 (iii) An alternative retail electric supplier shall
7659	7659	20 provide documentation to the Commission and to customers
7660	7660	21 that substantiates any claims made by the alternative
7661	7661	22 retail electric supplier regarding the technologies and
7662	7662	23 fuel types used to generate the electricity offered or
7663	7663	24 sold to customers.
7664	7664	25 (iv) The alternative retail electric supplier shall
7665	7665	26 provide to the customer (1) itemized billing statements
7666	7666
7667	7667
7668	7668
7669	7669
7670	7670
7671	7671	SB3637 - 213 - LRB103 38841 CES 68978 b
7672	7672
7673	7673
7674	7674	SB3637- 214 -LRB103 38841 CES 68978 b SB3637 - 214 - LRB103 38841 CES 68978 b
7675	7675	SB3637 - 214 - LRB103 38841 CES 68978 b
7676	7676	1 that describe the products and services provided to the
7677	7677	2 customer and their prices, and (2) an additional
7678	7678	3 statement, at least annually, that adequately discloses
7679	7679	4 the average monthly prices, and the terms and conditions,
7680	7680	5 of the products and services sold to the customer.
7681	7681	6 (v) All in-person and telephone solicitations shall be
7682	7682	7 conducted in, translated into, and provided in a language
7683	7683	8 in which the consumer subject to the marketing or
7684	7684	9 solicitation is able to understand and communicate. An
7685	7685	10 alternative retail electric supplier shall terminate a
7686	7686	11 solicitation if the consumer subject to the marketing or
7687	7687	12 communication is unable to understand and communicate in
7688	7688	13 the language in which the marketing or solicitation is
7689	7689	14 being conducted. An alternative retail electric supplier
7690	7690	15 shall comply with Section 2N of the Consumer Fraud and
7691	7691	16 Deceptive Business Practices Act.
7692	7692	17 (vi) Each alternative retail electric supplier shall
7693	7693	18 conduct training for individual representatives engaged in
7694	7694	19 in-person solicitation and telemarketing to residential
7695	7695	20 customers on behalf of that alternative retail electric
7696	7696	21 supplier prior to conducting any such solicitations on the
7697	7697	22 alternative retail electric supplier's behalf. Each
7698	7698	23 alternative retail electric supplier shall submit a copy
7699	7699	24 of its training material to the Commission on an annual
7700	7700	25 basis and the Commission shall have the right to review
7701	7701	26 and require updates to the material. After initial
7702	7702
7703	7703
7704	7704
7705	7705
7706	7706
7707	7707	SB3637 - 214 - LRB103 38841 CES 68978 b
7708	7708
7709	7709
7710	7710	SB3637- 215 -LRB103 38841 CES 68978 b SB3637 - 215 - LRB103 38841 CES 68978 b
7711	7711	SB3637 - 215 - LRB103 38841 CES 68978 b
7712	7712	1 training, each alternative retail electric supplier shall
7713	7713	2 be required to conduct refresher training for its
7714	7714	3 individual representatives every 6 months.
7715	7715	4 (f) An alternative retail electric supplier may limit the
7716	7716	5 overall size or availability of a service offering by
7717	7717	6 specifying one or more of the following: a maximum number of
7718	7718	7 customers, maximum amount of electric load to be served, time
7719	7719	8 period during which the offering will be available, or other
7720	7720	9 comparable limitation, but not including the geographic
7721	7721	10 locations of customers within the area which the alternative
7722	7722	11 retail electric supplier is certificated to serve. The
7723	7723	12 alternative retail electric supplier shall file the terms and
7724	7724	13 conditions of such service offering including the applicable
7725	7725	14 limitations with the Commission prior to making the service
7726	7726	15 offering available to customers.
7727	7727	16 (g) Nothing in this Section shall be construed as
7728	7728	17 preventing an alternative retail electric supplier, which is
7729	7729	18 an affiliate of, or which contracts with, (i) an industry or
7730	7730	19 trade organization or association, (ii) a membership
7731	7731	20 organization or association that exists for a purpose other
7732	7732	21 than the purchase of electricity, or (iii) another
7733	7733	22 organization that meets criteria established in a rule adopted
7734	7734	23 by the Commission, from offering through the organization or
7735	7735	24 association services at prices, terms and conditions that are
7736	7736	25 available solely to the members of the organization or
7737	7737	26 association.
7738	7738
7739	7739
7740	7740
7741	7741
7742	7742
7743	7743	SB3637 - 215 - LRB103 38841 CES 68978 b
7744	7744
7745	7745
7746	7746	SB3637- 216 -LRB103 38841 CES 68978 b SB3637 - 216 - LRB103 38841 CES 68978 b
7747	7747	SB3637 - 216 - LRB103 38841 CES 68978 b
7748	7748	1 (h) For all potentially eligible retail customers, as
7749	7749	2 defined in Section 16-111.5, served by an alternative retail
7750	7750	3 electric supplier, or electric utility other than the electric
7751	7751	4 utility in whose service area a customer is located, such
7752	7752	5 supplier or utility shall purchase products that include the
7753	7753	6 same percentage of renewable energy resources, as defined in
7754	7754	7 Section 1-10 of the Illinois Power Agency Act, as was procured
7755	7755	8 for the utility in whose service area such customers are
7756	7756	9 located for the immediately prior delivery year. Such clean
7757	7757	10 energy shall include all environmental attributes as described
7758	7758	11 in Section 16-111.5 and match the eligibility criteria of
7759	7759	12 resources eligible for the renewable portfolio standard
7760	7760	13 described in subsections (c)(I) and (c)(J) of Section 1-75 of
7761	7761	14 the Illinois Power Agency Act.
7762	7762	15 (Source: P.A. 102-459, eff. 8-20-21; 103-237, eff. 6-30-23.)
7763	7763	16 (220 ILCS 5/16-115D)
7764	7764	17 Sec. 16-115D. Renewable portfolio standard for alternative
7765	7765	18 retail electric suppliers and electric utilities operating
7766	7766	19 outside their service territories.
7767	7767	20 (a) An alternative retail electric supplier shall be
7768	7768	21 responsible for procuring cost-effective renewable energy
7769	7769	22 resources as required under item (5) of subsection (d) of
7770	7770	23 Section 16-115 of this Act as outlined herein:
7771	7771	24 (1) The definition of renewable energy resources
7772	7772	25 contained in Section 1-10 of the Illinois Power Agency Act
7773	7773
7774	7774
7775	7775
7776	7776
7777	7777
7778	7778	SB3637 - 216 - LRB103 38841 CES 68978 b
7779	7779
7780	7780
7781	7781	SB3637- 217 -LRB103 38841 CES 68978 b SB3637 - 217 - LRB103 38841 CES 68978 b
7782	7782	SB3637 - 217 - LRB103 38841 CES 68978 b
7783	7783	1 applies to all renewable energy resources required to be
7784	7784	2 procured by alternative retail electric suppliers.
7785	7785	3 (2) Through May 31, 2017, the quantity of renewable
7786	7786	4 energy resources shall be measured as a percentage of the
7787	7787	5 actual amount of metered electricity (megawatt-hours)
7788	7788	6 delivered by the alternative retail electric supplier to
7789	7789	7 Illinois retail customers during the 12-month period June
7790	7790	8 1 through May 31, commencing June 1, 2009, and the
7791	7791	9 comparable 12-month period in each year thereafter except
7792	7792	10 as provided in item (6) of this subsection (a).
7793	7793	11 (3) Through May 31, 2017, the quantity of renewable
7794	7794	12 energy resources shall be in amounts at least equal to the
7795	7795	13 annual percentages set forth in item (1) of subsection (c)
7796	7796	14 of Section 1-75 of the Illinois Power Agency Act. At least
7797	7797	15 60% of the renewable energy resources procured pursuant to
7798	7798	16 items (1) and (3) of subsection (b) of this Section shall
7799	7799	17 come from wind generation and, starting June 1, 2015, at
7800	7800	18 least 6% of the renewable energy resources procured
7801	7801	19 pursuant to items (1) and (3) of subsection (b) of this
7802	7802	20 Section shall come from solar photovoltaics. If, in any
7803	7803	21 given year, an alternative retail electric supplier does
7804	7804	22 not purchase at least these levels of renewable energy
7805	7805	23 resources, then the alternative retail electric supplier
7806	7806	24 shall make alternative compliance payments, as described
7807	7807	25 in subsection (d) of this Section.
7808	7808	26 (3.5) For the delivery year commencing June 1, 2017,
7809	7809
7810	7810
7811	7811
7812	7812
7813	7813
7814	7814	SB3637 - 217 - LRB103 38841 CES 68978 b
7815	7815
7816	7816
7817	7817	SB3637- 218 -LRB103 38841 CES 68978 b SB3637 - 218 - LRB103 38841 CES 68978 b
7818	7818	SB3637 - 218 - LRB103 38841 CES 68978 b
7819	7819	1 the quantity of renewable energy resources shall be at
7820	7820	2 least 13.0% of the uncovered amount of metered electricity
7821	7821	3 (megawatt-hours) delivered by the alternative retail
7822	7822	4 electric supplier to Illinois retail customers during the
7823	7823	5 delivery year, which uncovered amount shall equal 50% of
7824	7824	6 such metered electricity delivered by the alternative
7825	7825	7 retail electric supplier. For the delivery year commencing
7826	7826	8 June 1, 2018, the quantity of renewable energy resources
7827	7827	9 shall be at least 14.5% of the uncovered amount of metered
7828	7828	10 electricity (megawatt-hours) delivered by the alternative
7829	7829	11 retail electric supplier to Illinois retail customers
7830	7830	12 during the delivery year, which uncovered amount shall
7831	7831	13 equal 25% of such metered electricity delivered by the
7832	7832	14 alternative retail electric supplier. At least 32% of the
7833	7833	15 renewable energy resources procured by the alternative
7834	7834	16 retail electric supplier for its uncovered portion under
7835	7835	17 this paragraph (3.5) shall come from wind or photovoltaic
7836	7836	18 generation. The renewable energy resources procured under
7837	7837	19 this paragraph (3.5) shall not include any resources from
7838	7838	20 a facility whose costs were being recovered through rates
7839	7839	21 regulated by any state or states on or after January 1,
7840	7840	22 2017.
7841	7841	23 (4) The quantity and source of renewable energy
7842	7842	24 resources shall be independently verified through the PJM
7843	7843	25 Environmental Information System Generation Attribute
7844	7844	26 Tracking System (PJM-GATS) or the Midwest Renewable Energy
7845	7845
7846	7846
7847	7847
7848	7848
7849	7849
7850	7850	SB3637 - 218 - LRB103 38841 CES 68978 b
7851	7851
7852	7852
7853	7853	SB3637- 219 -LRB103 38841 CES 68978 b SB3637 - 219 - LRB103 38841 CES 68978 b
7854	7854	SB3637 - 219 - LRB103 38841 CES 68978 b
7855	7855	1 Tracking System (M-RETS), which shall document the
7856	7856	2 location of generation, resource type, month, and year of
7857	7857	3 generation for all qualifying renewable energy resources
7858	7858	4 that an alternative retail electric supplier uses to
7859	7859	5 comply with this Section. No later than June 1, 2009, the
7860	7860	6 Illinois Power Agency shall provide PJM-GATS, M-RETS, and
7861	7861	7 alternative retail electric suppliers with all information
7862	7862	8 necessary to identify resources located in Illinois,
7863	7863	9 within states that adjoin Illinois or within portions of
7864	7864	10 the PJM and MISO footprint in the United States that
7865	7865	11 qualify under the definition of renewable energy resources
7866	7866	12 in Section 1-10 of the Illinois Power Agency Act for
7867	7867	13 compliance with this Section 16-115D. Alternative retail
7868	7868	14 electric suppliers shall not be subject to the
7869	7869	15 requirements in item (3) of subsection (c) of Section 1-75
7870	7870	16 of the Illinois Power Agency Act.
7871	7871	17 (5) All renewable energy credits used to comply with
7872	7872	18 this Section shall be permanently retired.
7873	7873	19 (6) The required procurement of renewable energy
7874	7874	20 resources by an alternative retail electric supplier shall
7875	7875	21 apply to all metered electricity delivered to Illinois
7876	7876	22 retail customers by the alternative retail electric
7877	7877	23 supplier pursuant to contracts executed or extended after
7878	7878	24 March 15, 2009.
7879	7879	25 (b) Compliance obligations.
7880	7880	26 (1) Through May 31, 2017, an alternative retail
7881	7881
7882	7882
7883	7883
7884	7884
7885	7885
7886	7886	SB3637 - 219 - LRB103 38841 CES 68978 b
7887	7887
7888	7888
7889	7889	SB3637- 220 -LRB103 38841 CES 68978 b SB3637 - 220 - LRB103 38841 CES 68978 b
7890	7890	SB3637 - 220 - LRB103 38841 CES 68978 b
7891	7891	1 electric supplier shall comply with the renewable energy
7892	7892	2 portfolio standards by making an alternative compliance
7893	7893	3 payment, as described in subsection (d) of this Section,
7894	7894	4 to cover at least one-half of the alternative retail
7895	7895	5 electric supplier's compliance obligation for the period
7896	7896	6 prior to June 1, 2017.
7897	7897	7 (2) For the delivery years beginning June 1, 2017 and
7898	7898	8 June 1, 2018, an alternative retail electric supplier need
7899	7899	9 not make any alternative compliance payment to meet any
7900	7900	10 portion of its compliance obligation, as set forth in
7901	7901	11 paragraph (3.5) of subsection (a) of this Section.
7902	7902	12 (3) An alternative retail electric supplier shall use
7903	7903	13 any one or combination of the following means to cover the
7904	7904	14 remainder of the alternative retail electric supplier's
7905	7905	15 compliance obligation, as set forth in paragraphs (3) and
7906	7906	16 (3.5) of subsection (a) of this Section, not covered by an
7907	7907	17 alternative compliance payment made under paragraphs (1)
7908	7908	18 and (2) of this subsection (b) of this Section:
7909	7909	19 (A) Generating electricity using renewable energy
7910	7910	20 resources identified pursuant to item (4) of
7911	7911	21 subsection (a) of this Section.
7912	7912	22 (B) Purchasing electricity generated using
7913	7913	23 renewable energy resources identified pursuant to item
7914	7914	24 (4) of subsection (a) of this Section through an
7915	7915	25 energy contract.
7916	7916	26 (C) Purchasing renewable energy credits from
7917	7917
7918	7918
7919	7919
7920	7920
7921	7921
7922	7922	SB3637 - 220 - LRB103 38841 CES 68978 b
7923	7923
7924	7924
7925	7925	SB3637- 221 -LRB103 38841 CES 68978 b SB3637 - 221 - LRB103 38841 CES 68978 b
7926	7926	SB3637 - 221 - LRB103 38841 CES 68978 b
7927	7927	1 renewable energy resources identified pursuant to item
7928	7928	2 (4) of subsection (a) of this Section.
7929	7929	3 (D) Making an alternative compliance payment as
7930	7930	4 described in subsection (d) of this Section.
7931	7931	5 (c) Use of renewable energy credits.
7932	7932	6 (1) Renewable energy credits that are not used by an
7933	7933	7 alternative retail electric supplier to comply with a
7934	7934	8 renewable portfolio standard in a compliance year may be
7935	7935	9 banked and carried forward up to 2 12-month compliance
7936	7936	10 periods after the compliance period in which the credit
7937	7937	11 was generated for the purpose of complying with a
7938	7938	12 renewable portfolio standard in those 2 subsequent
7939	7939	13 compliance periods. For the 2009-2010 and 2010-2011
7940	7940	14 compliance periods, an alternative retail electric
7941	7941	15 supplier may use renewable credits generated after
7942	7942	16 December 31, 2008 and before June 1, 2009 to comply with
7943	7943	17 this Section.
7944	7944	18 (2) An alternative retail electric supplier is
7945	7945	19 responsible for demonstrating that a renewable energy
7946	7946	20 credit used to comply with a renewable portfolio standard
7947	7947	21 is derived from a renewable energy resource and that the
7948	7948	22 alternative retail electric supplier has not used, traded,
7949	7949	23 sold, or otherwise transferred the credit.
7950	7950	24 (3) The same renewable energy credit may be used by an
7951	7951	25 alternative retail electric supplier to comply with a
7952	7952	26 federal renewable portfolio standard and a renewable
7953	7953
7954	7954
7955	7955
7956	7956
7957	7957
7958	7958	SB3637 - 221 - LRB103 38841 CES 68978 b
7959	7959
7960	7960
7961	7961	SB3637- 222 -LRB103 38841 CES 68978 b SB3637 - 222 - LRB103 38841 CES 68978 b
7962	7962	SB3637 - 222 - LRB103 38841 CES 68978 b
7963	7963	1 portfolio standard established under this Act. An
7964	7964	2 alternative retail electric supplier that uses a renewable
7965	7965	3 energy credit to comply with a renewable portfolio
7966	7966	4 standard imposed by any other state may not use the same
7967	7967	5 credit to comply with a renewable portfolio standard
7968	7968	6 established under this Act.
7969	7969	7 (d) Alternative compliance payments.
7970	7970	8 (1) The Commission shall establish and post on its
7971	7971	9 website, within 5 business days after entering an order
7972	7972	10 approving a procurement plan pursuant to Section 1-75 of
7973	7973	11 the Illinois Power Agency Act, maximum alternative
7974	7974	12 compliance payment rates, expressed on a per kilowatt-hour
7975	7975	13 basis, that will be applicable in the first compliance
7976	7976	14 period following the plan approval. A separate maximum
7977	7977	15 alternative compliance payment rate shall be established
7978	7978	16 for the service territory of each electric utility that is
7979	7979	17 subject to subsection (c) of Section 1-75 of the Illinois
7980	7980	18 Power Agency Act. Each maximum alternative compliance
7981	7981	19 payment rate shall be equal to the maximum allowable
7982	7982	20 annual estimated average net increase due to the costs of
7983	7983	21 the utility's purchase of renewable energy resources
7984	7984	22 included in the amounts paid by eligible retail customers
7985	7985	23 in connection with electric service, as described in item
7986	7986	24 (2) of subsection (c) of Section 1-75 of the Illinois
7987	7987	25 Power Agency Act for the compliance period, and as
7988	7988	26 established in the approved procurement plan. Following
7989	7989
7990	7990
7991	7991
7992	7992
7993	7993
7994	7994	SB3637 - 222 - LRB103 38841 CES 68978 b
7995	7995
7996	7996
7997	7997	SB3637- 223 -LRB103 38841 CES 68978 b SB3637 - 223 - LRB103 38841 CES 68978 b
7998	7998	SB3637 - 223 - LRB103 38841 CES 68978 b
7999	7999	1 each procurement event through which renewable energy
8000	8000	2 resources are purchased for one or more of these utilities
8001	8001	3 for the compliance period, the Commission shall establish
8002	8002	4 and post on its website estimates of the alternative
8003	8003	5 compliance payment rates, expressed on a per kilowatt-hour
8004	8004	6 basis, that shall apply for that compliance period.
8005	8005	7 Posting of the estimates shall occur no later than 10
8006	8006	8 business days following the procurement event, however,
8007	8007	9 the Commission shall not be required to establish and post
8008	8008	10 such estimates more often than once per calendar month. By
8009	8009	11 July 1 of each year, the Commission shall establish and
8010	8010	12 post on its website the actual alternative compliance
8011	8011	13 payment rates for the preceding compliance year. For
8012	8012	14 compliance years beginning prior to June 1, 2014, each
8013	8013	15 alternative compliance payment rate shall be equal to the
8014	8014	16 total amount of dollars that the utility contracted to
8015	8015	17 spend on renewable resources, excepting the additional
8016	8016	18 incremental cost attributable to solar resources, for the
8017	8017	19 compliance period divided by the forecasted load of
8018	8018	20 eligible retail customers, at the customers' meters, as
8019	8019	21 previously established in the Commission-approved
8020	8020	22 procurement plan for that compliance year. For compliance
8021	8021	23 years commencing on or after June 1, 2014, each
8022	8022	24 alternative compliance payment rate shall be equal to the
8023	8023	25 total amount of dollars that the utility contracted to
8024	8024	26 spend on all renewable resources for the compliance period
8025	8025
8026	8026
8027	8027
8028	8028
8029	8029
8030	8030	SB3637 - 223 - LRB103 38841 CES 68978 b
8031	8031
8032	8032
8033	8033	SB3637- 224 -LRB103 38841 CES 68978 b SB3637 - 224 - LRB103 38841 CES 68978 b
8034	8034	SB3637 - 224 - LRB103 38841 CES 68978 b
8035	8035	1 divided by the forecasted load of retail customers for
8036	8036	2 which the utility is procuring renewable energy resources
8037	8037	3 in a given delivery year, at the customers' meters, as
8038	8038	4 previously established in the Commission-approved
8039	8039	5 procurement plan for that compliance year. The actual
8040	8040	6 alternative compliance payment rates may not exceed the
8041	8041	7 maximum alternative compliance payment rates established
8042	8042	8 for the compliance period. For purposes of this subsection
8043	8043	9 (d), the term "eligible retail customers" has the same
8044	8044	10 meaning as found in Section 16-111.5 of this Act.
8045	8045	11 (2) In any given compliance year, an alternative
8046	8046	12 retail electric supplier may elect to use alternative
8047	8047	13 compliance payments to comply with all or a part of the
8048	8048	14 applicable renewable portfolio standard. In the event that
8049	8049	15 an alternative retail electric supplier elects to make
8050	8050	16 alternative compliance payments to comply with all or a
8051	8051	17 part of the applicable renewable portfolio standard, such
8052	8052	18 payments shall be made by September 1, 2010 for the period
8053	8053	19 of June 1, 2009 to May 1, 2010 and by September 1 of each
8054	8054	20 year thereafter for the subsequent compliance period, in
8055	8055	21 the manner and form as determined by the Commission. Any
8056	8056	22 election by an alternative retail electric supplier to use
8057	8057	23 alternative compliance payments is subject to review by
8058	8058	24 the Commission under subsection (e) of this Section.
8059	8059	25 (3) An alternative retail electric supplier's
8060	8060	26 alternative compliance payments shall be computed
8061	8061
8062	8062
8063	8063
8064	8064
8065	8065
8066	8066	SB3637 - 224 - LRB103 38841 CES 68978 b
8067	8067
8068	8068
8069	8069	SB3637- 225 -LRB103 38841 CES 68978 b SB3637 - 225 - LRB103 38841 CES 68978 b
8070	8070	SB3637 - 225 - LRB103 38841 CES 68978 b
8071	8071	1 separately for each electric utility's service territory
8072	8072	2 within which the alternative retail electric supplier
8073	8073	3 provided retail service during the compliance period,
8074	8074	4 provided that the electric utility was subject to
8075	8075	5 subsection (c) of Section 1-75 of the Illinois Power
8076	8076	6 Agency Act. For each service territory, the alternative
8077	8077	7 retail electric supplier's alternative compliance payment
8078	8078	8 shall be equal to (i) the actual alternative compliance
8079	8079	9 payment rate established in item (1) of this subsection
8080	8080	10 (d), multiplied by (ii) the actual amount of metered
8081	8081	11 electricity delivered by the alternative retail electric
8082	8082	12 supplier to retail customers for which the supplier has a
8083	8083	13 compliance obligation within the service territory during
8084	8084	14 the compliance period, multiplied by (iii) the result of
8085	8085	15 one minus the ratios of the quantity of renewable energy
8086	8086	16 resources used by the alternative retail electric supplier
8087	8087	17 to comply with the requirements of this Section within the
8088	8088	18 service territory to the product of the percentage of
8089	8089	19 renewable energy resources required under item (3) or
8090	8090	20 (3.5) of subsection (a) of this Section and the actual
8091	8091	21 amount of metered electricity delivered by the alternative
8092	8092	22 retail electrical supplier to retail customers for which
8093	8093	23 the supplier has a compliance obligation within the
8094	8094	24 service territory during the compliance period.
8095	8095	25 (4) Through May 31, 2017, all alternative compliance
8096	8096	26 payments by alternative retail electric suppliers shall be
8097	8097
8098	8098
8099	8099
8100	8100
8101	8101
8102	8102	SB3637 - 225 - LRB103 38841 CES 68978 b
8103	8103
8104	8104
8105	8105	SB3637- 226 -LRB103 38841 CES 68978 b SB3637 - 226 - LRB103 38841 CES 68978 b
8106	8106	SB3637 - 226 - LRB103 38841 CES 68978 b
8107	8107	1 deposited in the Illinois Power Agency Renewable Energy
8108	8108	2 Resources Fund and used to purchase renewable energy
8109	8109	3 credits, in accordance with Section 1-56 of the Illinois
8110	8110	4 Power Agency Act. Beginning April 1, 2012 and by April 1 of
8111	8111	5 each year thereafter, the Illinois Power Agency shall
8112	8112	6 submit an annual report to the General Assembly, the
8113	8113	7 Commission, and alternative retail electric suppliers that
8114	8114	8 shall include, but not be limited to:
8115	8115	9 (A) the total amount of alternative compliance
8116	8116	10 payments received in aggregate from alternative retail
8117	8117	11 electric suppliers by planning year for all previous
8118	8118	12 planning years in which the alternative compliance
8119	8119	13 payment was in effect;
8120	8120	14 (B) the amount of those payments utilized to
8121	8121	15 purchased renewable energy credits itemized by the
8122	8122	16 date of each procurement in which the payments were
8123	8123	17 utilized; and
8124	8124	18 (C) the unused and remaining balance in the Agency
8125	8125	19 Renewable Energy Resources Fund attributable to those
8126	8126	20 payments.
8127	8127	21 (4.5) Beginning with the delivery year commencing June
8128	8128	22 1, 2017, all alternative compliance payments by
8129	8129	23 alternative retail electric suppliers shall be remitted to
8130	8130	24 the applicable electric utility. To facilitate this
8131	8131	25 remittance, each electric utility shall file a tariff with
8132	8132	26 the Commission no later than 30 days following the
8133	8133
8134	8134
8135	8135
8136	8136
8137	8137
8138	8138	SB3637 - 226 - LRB103 38841 CES 68978 b
8139	8139
8140	8140
8141	8141	SB3637- 227 -LRB103 38841 CES 68978 b SB3637 - 227 - LRB103 38841 CES 68978 b
8142	8142	SB3637 - 227 - LRB103 38841 CES 68978 b
8143	8143	1 effective date of this amendatory Act of the 99th General
8144	8144	2 Assembly, which the Commission shall approve, after notice
8145	8145	3 and hearing, no later than 45 days after its filing. The
8146	8146	4 Illinois Power Agency shall use such payments to increase
8147	8147	5 the amount of renewable energy resources otherwise to be
8148	8148	6 procured under subsection (c) of Section 1-75 of the
8149	8149	7 Illinois Power Agency Act.
8150	8150	8 (5) The Commission, in consultation with the Illinois
8151	8151	9 Power Agency, shall establish a process or proceeding to
8152	8152	10 consider the impact of a federal renewable portfolio
8153	8153	11 standard, if enacted, on the operation of the alternative
8154	8154	12 compliance mechanism, which shall include, but not be
8155	8155	13 limited to, developing, to the extent permitted by the
8156	8156	14 applicable federal statute, an appropriate methodology to
8157	8157	15 apportion renewable energy credits retired as a result of
8158	8158	16 alternative compliance payments made in accordance with
8159	8159	17 this Section. The Commission shall commence any such
8160	8160	18 process or proceeding within 35 days after enactment of a
8161	8161	19 federal renewable portfolio standard.
8162	8162	20 (e) Each alternative retail electric supplier shall, by
8163	8163	21 September 1, 2010 and by September 1 of each year thereafter,
8164	8164	22 prepare and submit to the Commission a report, in a format to
8165	8165	23 be specified by the Commission, that provides information
8166	8166	24 certifying compliance by the alternative retail electric
8167	8167	25 supplier with this Section, including copies of all PJM-GATS
8168	8168	26 and M-RETS reports, and documentation relating to banking,
8169	8169
8170	8170
8171	8171
8172	8172
8173	8173
8174	8174	SB3637 - 227 - LRB103 38841 CES 68978 b
8175	8175
8176	8176
8177	8177	SB3637- 228 -LRB103 38841 CES 68978 b SB3637 - 228 - LRB103 38841 CES 68978 b
8178	8178	SB3637 - 228 - LRB103 38841 CES 68978 b
8179	8179	1 retiring renewable energy credits, and any other information
8180	8180	2 that the Commission determines necessary to ensure compliance
8181	8181	3 with this Section.
8182	8182	4 An alternative retail electric supplier may file
8183	8183	5 commercially or financially sensitive information or trade
8184	8184	6 secrets with the Commission as provided under the rules of the
8185	8185	7 Commission. To be filed confidentially, the information shall
8186	8186	8 be accompanied by an affidavit that sets forth both the
8187	8187	9 reasons for the confidentiality and a public synopsis of the
8188	8188	10 information.
8189	8189	11 (f) The Commission may initiate a contested case to review
8190	8190	12 allegations that the alternative retail electric supplier has
8191	8191	13 violated this Section, including an order issued or rule
8192	8192	14 promulgated under this Section. In any such proceeding, the
8193	8193	15 alternative retail electric supplier shall have the burden of
8194	8194	16 proof. If the Commission finds, after notice and hearing, that
8195	8195	17 an alternative retail electric supplier has violated this
8196	8196	18 Section, then the Commission shall issue an order requiring
8197	8197	19 the alternative retail electric supplier to:
8198	8198	20 (1) immediately comply with this Section; and
8199	8199	21 (2) if the violation involves a failure to procure the
8200	8200	22 requisite quantity of renewable energy resources or pay
8201	8201	23 the applicable alternative compliance payment by the
8202	8202	24 annual deadline, the Commission shall require the
8203	8203	25 alternative retail electric supplier to double the
8204	8204	26 applicable alternative compliance payment that would
8205	8205
8206	8206
8207	8207
8208	8208
8209	8209
8210	8210	SB3637 - 228 - LRB103 38841 CES 68978 b
8211	8211
8212	8212
8213	8213	SB3637- 229 -LRB103 38841 CES 68978 b SB3637 - 229 - LRB103 38841 CES 68978 b
8214	8214	SB3637 - 229 - LRB103 38841 CES 68978 b
8215	8215	1 otherwise be required to bring the alternative retail
8216	8216	2 electric supplier into compliance with this Section.
8217	8217	3 If an alternative retail electric supplier fails to comply
8218	8218	4 with the renewable energy resource portfolio requirement or
8219	8219	5 capacity portfolio requirement in this Section more than once
8220	8220	6 in a 5-year period, then the Commission shall revoke the
8221	8221	7 alternative electric supplier's certificate of service
8222	8222	8 authority. The Commission shall not accept an application for
8223	8223	9 a certificate of service authority from an alternative retail
8224	8224	10 electric supplier that has lost certification under this
8225	8225	11 subsection (f), or any corporate affiliate thereof, for at
8226	8226	12 least one year after the date of revocation.
8227	8227	13 (g) All of the provisions of this Section apply to
8228	8228	14 electric utilities operating outside their service area except
8229	8229	15 under item (2) of subsection (a) of this Section the quantity
8230	8230	16 of renewable energy resources shall be measured as a
8231	8231	17 percentage of the actual amount of electricity
8232	8232	18 (megawatt-hours) supplied in the State outside of the
8233	8233	19 utility's service territory during the 12-month period June 1
8234	8234	20 through May 31, commencing June 1, 2009, and the comparable
8235	8235	21 12-month period in each year thereafter except as provided in
8236	8236	22 item (6) of subsection (a) of this Section.
8237	8237	23 If any such utility fails to procure the requisite
8238	8238	24 quantity of renewable energy resources by the annual deadline,
8239	8239	25 then the Commission shall require the utility to double the
8240	8240	26 alternative compliance payment that would otherwise be
8241	8241
8242	8242
8243	8243
8244	8244
8245	8245
8246	8246	SB3637 - 229 - LRB103 38841 CES 68978 b
8247	8247
8248	8248
8249	8249	SB3637- 230 -LRB103 38841 CES 68978 b SB3637 - 230 - LRB103 38841 CES 68978 b
8250	8250	SB3637 - 230 - LRB103 38841 CES 68978 b
8251	8251	1 required to bring the utility into compliance with this
8252	8252	2 Section.
8253	8253	3 If any such utility fails to comply with the renewable
8254	8254	4 energy resource portfolio requirement in this Section more
8255	8255	5 than once in a 5-year period, then the Commission shall order
8256	8256	6 the utility to cease all sales outside of the utility's
8257	8257	7 service territory for a period of at least one year.
8258	8258	8 (h) The provisions of this Section and the provisions of
8259	8259	9 subsection (d) of Section 16-115 of this Act relating to
8260	8260	10 procurement of renewable energy resources shall not apply to
8261	8261	11 an alternative retail electric supplier that operates a
8262	8262	12 combined heat and power system in this State or that has a
8263	8263	13 corporate affiliate that operates such a combined heat and
8264	8264	14 power system in this State that supplies electricity primarily
8265	8265	15 to or for the benefit of: (i) facilities owned by the supplier,
8266	8266	16 its subsidiary, or other corporate affiliate; (ii) facilities
8267	8267	17 electrically integrated with the electrical system of
8268	8268	18 facilities owned by the supplier, its subsidiary, or other
8269	8269	19 corporate affiliate; or (iii) facilities that are adjacent to
8270	8270	20 the site on which the combined heat and power system is
8271	8271	21 located.
8272	8272	22 (i) The obligations of alternative retail electric
8273	8273	23 suppliers and electric utilities operating outside their
8274	8274	24 service territories to procure renewable energy resources,
8275	8275	25 make alternative compliance payments, and file annual reports,
8276	8276	26 and the obligations of the Commission to determine and post
8277	8277
8278	8278
8279	8279
8280	8280
8281	8281
8282	8282	SB3637 - 230 - LRB103 38841 CES 68978 b
8283	8283
8284	8284
8285	8285	SB3637- 231 -LRB103 38841 CES 68978 b SB3637 - 231 - LRB103 38841 CES 68978 b
8286	8286	SB3637 - 231 - LRB103 38841 CES 68978 b
8287	8287	1 alternative compliance payment rates, shall terminate after
8288	8288	2 May 31, 2019, provided that alternative retail electric
8289	8289	3 suppliers and electric utilities operating outside their
8290	8290	4 service territories shall be obligated to make all alternative
8291	8291	5 compliance payments that they were obligated to pay for
8292	8292	6 periods through and including May 31, 2019, but were not paid
8293	8293	7 as of that date. The Commission shall continue to enforce the
8294	8294	8 payment of unpaid alternative compliance payments in
8295	8295	9 accordance with subsections (f) and (g) of this Section. All
8296	8296	10 alternative compliance payments made after May 31, 2016 shall
8297	8297	11 be remitted to the applicable electric utility and used to
8298	8298	12 purchase renewable energy credits, in accordance with Section
8299	8299	13 1-75 of the Illinois Power Agency Act.
8300	8300	14 This subsection (i) is intended to accommodate the
8301	8301	15 transition to the procurement of renewable energy resources
8302	8302	16 for all retail customers in the amounts specified under
8303	8303	17 subsection (c) of Section 1-75 of the Illinois Power Agency
8304	8304	18 Act and Section 16-111.5 of this Act, including but not
8305	8305	19 limited to the transition to a single charge applicable to all
8306	8306	20 retail customers to recover the costs of these resources. Each
8307	8307	21 alternative retail electric supplier shall certify in its
8308	8308	22 annual reports filed pursuant to subsection (e) of this
8309	8309	23 Section after May 31, 2019, that its retail customers are not
8310	8310	24 paying the costs of alternative compliance payments or
8311	8311	25 renewable energy resources that the alternative retail
8312	8312	26 electric supplier is not required to remit or purchase under
8313	8313
8314	8314
8315	8315
8316	8316
8317	8317
8318	8318	SB3637 - 231 - LRB103 38841 CES 68978 b
8319	8319
8320	8320
8321	8321	SB3637- 232 -LRB103 38841 CES 68978 b SB3637 - 232 - LRB103 38841 CES 68978 b
8322	8322	SB3637 - 232 - LRB103 38841 CES 68978 b
8323	8323	1 this Section. The Commission shall have the authority to
8324	8324	2 initiate an emergency rulemaking to adopt rules regarding such
8325	8325	3 certification.
8326	8326	4 (Source: P.A. 99-906, eff. 6-1-17.)
8327	8327	5 (220 ILCS 5/17-500)
8328	8328	6 Sec. 17-500. Jurisdiction. Except as provided in the
8329	8329	7 Electric Supplier Act, the Illinois Municipal Code, the
8330	8330	8 Municipal and Cooperative Electric Utility Planning and
8331	8331	9 Transparency Act, and this Article XVII, the Commission, or
8332	8332	10 any other agency or subdivision thereof of the State of
8333	8333	11 Illinois or any private entity shall have no jurisdiction over
8334	8334	12 any electric cooperative or municipal system regardless of
8335	8335	13 whether any election or elections as provided for herein have
8336	8336	14 been made, and all control regarding an electric cooperative
8337	8337	15 or municipal system shall be vested in the electric
8338	8338	16 cooperative's board of directors or trustees or the applicable
8339	8339	17 governing body of the municipal system.
8340	8340	18 (Source: P.A. 90-561, eff. 12-16-97.)
8341	8341	19 Section 110
8342	8342	. The Eminent Domain Act is amended by changing
8343	8343	20 Section 5-5-5 as follows:
8344	8344	21 (735 ILCS 30/5-5-5)
8345	8345	22 Sec. 5-5-5. Exercise of the power of eminent domain;
8346	8346	23 public use; blight.
8347	8347
8348	8348
8349	8349
8350	8350
8351	8351
8352	8352	SB3637 - 232 - LRB103 38841 CES 68978 b
8353	8353
8354	8354
8355	8355	SB3637- 233 -LRB103 38841 CES 68978 b SB3637 - 233 - LRB103 38841 CES 68978 b
8356	8356	SB3637 - 233 - LRB103 38841 CES 68978 b
8357	8357	1 (a) In addition to all other limitations and requirements,
8358	8358	2 a condemning authority may not take or damage property by the
8359	8359	3 exercise of the power of eminent domain unless it is for a
8360	8360	4 public use, as set forth in this Section.
8361	8361	5 (a-5) Subsections (b), (c), (d), (e), and (f) of this
8362	8362	6 Section do not apply to the acquisition of property under the
8363	8363	7 O'Hare Modernization Act. A condemning authority may exercise
8364	8364	8 the power of eminent domain for the acquisition or damaging of
8365	8365	9 property under the O'Hare Modernization Act as provided for by
8366	8366	10 law in effect prior to the effective date of this Act.
8367	8367	11 (a-10) Subsections (b), (c), (d), (e), and (f) of this
8368	8368	12 Section do not apply to the acquisition or damaging of
8369	8369	13 property in furtherance of the goals and objectives of an
8370	8370	14 existing tax increment allocation redevelopment plan. A
8371	8371	15 condemning authority may exercise the power of eminent domain
8372	8372	16 for the acquisition of property in furtherance of an existing
8373	8373	17 tax increment allocation redevelopment plan as provided for by
8374	8374	18 law in effect prior to the effective date of this Act.
8375	8375	19 As used in this subsection, "existing tax increment
8376	8376	20 allocation redevelopment plan" means a redevelopment plan that
8377	8377	21 was adopted under the Tax Increment Allocation Redevelopment
8378	8378	22 Act (Article 11, Division 74.4 of the Illinois Municipal Code)
8379	8379	23 prior to April 15, 2006 and for which property assembly costs
8380	8380	24 were, before that date, included as a budget line item in the
8381	8381	25 plan or described in the narrative portion of the plan as part
8382	8382	26 of the redevelopment project, but does not include (i) any
8383	8383
8384	8384
8385	8385
8386	8386
8387	8387
8388	8388	SB3637 - 233 - LRB103 38841 CES 68978 b
8389	8389
8390	8390
8391	8391	SB3637- 234 -LRB103 38841 CES 68978 b SB3637 - 234 - LRB103 38841 CES 68978 b
8392	8392	SB3637 - 234 - LRB103 38841 CES 68978 b
8393	8393	1 additional area added to the redevelopment project area on or
8394	8394	2 after April 15, 2006, (ii) any subsequent extension of the
8395	8395	3 completion date of a redevelopment plan beyond the estimated
8396	8396	4 completion date established in that plan prior to April 15,
8397	8397	5 2006, (iii) any acquisition of property in a conservation area
8398	8398	6 for which the condemnation complaint is filed more than 12
8399	8399	7 years after the effective date of this Act, or (iv) any
8400	8400	8 acquisition of property in an industrial park conservation
8401	8401	9 area.
8402	8402	10 As used in this subsection, "conservation area" and
8403	8403	11 "industrial park conservation area" have the same meanings as
8404	8404	12 under Section 11-74.4-3 of the Illinois Municipal Code.
8405	8405	13 (b) If the exercise of eminent domain authority is to
8406	8406	14 acquire property for public ownership and control, then the
8407	8407	15 condemning authority must prove that (i) the acquisition of
8408	8408	16 the property is necessary for a public purpose and (ii) the
8409	8409	17 acquired property will be owned and controlled by the
8410	8410	18 condemning authority or another governmental entity.
8411	8411	19 (c) Except when the acquisition is governed by subsection
8412	8412	20 (b) or is primarily for one of the purposes specified in
8413	8413	21 subsection (d), (e), or (f) and the condemning authority
8414	8414	22 elects to proceed under one of those subsections, if the
8415	8415	23 exercise of eminent domain authority is to acquire property
8416	8416	24 for private ownership or control, or both, then the condemning
8417	8417	25 authority must prove by clear and convincing evidence that the
8418	8418	26 acquisition of the property for private ownership or control
8419	8419
8420	8420
8421	8421
8422	8422
8423	8423
8424	8424	SB3637 - 234 - LRB103 38841 CES 68978 b
8425	8425
8426	8426
8427	8427	SB3637- 235 -LRB103 38841 CES 68978 b SB3637 - 235 - LRB103 38841 CES 68978 b
8428	8428	SB3637 - 235 - LRB103 38841 CES 68978 b
8429	8429	1 is (i) primarily for the benefit, use, or enjoyment of the
8430	8430	2 public and (ii) necessary for a public purpose.
8431	8431	3 An acquisition of property primarily for the purpose of
8432	8432	4 the elimination of blight is rebuttably presumed to be for a
8433	8433	5 public purpose and primarily for the benefit, use, or
8434	8434	6 enjoyment of the public under this subsection.
8435	8435	7 Any challenge to the existence of blighting factors
8436	8436	8 alleged in a complaint to condemn under this subsection shall
8437	8437	9 be raised within 6 months of the filing date of the complaint
8438	8438	10 to condemn, and if not raised within that time the right to
8439	8439	11 challenge the existence of those blighting factors shall be
8440	8440	12 deemed waived.
8441	8441	13 Evidence that the Illinois Commerce Commission has granted
8442	8442	14 a certificate or otherwise made a finding of public
8443	8443	15 convenience and necessity for an acquisition of property (or
8444	8444	16 any right or interest in property) for private ownership or
8445	8445	17 control (including, without limitation, an acquisition for
8446	8446	18 which the use of eminent domain is authorized under the Public
8447	8447	19 Utilities Act, the Telephone Company Act, or the Electric
8448	8448	20 Supplier Act) to be used for utility purposes creates a
8449	8449	21 rebuttable presumption that such acquisition of that property
8450	8450	22 (or right or interest in property) is (i) primarily for the
8451	8451	23 benefit, use, or enjoyment of the public and (ii) necessary
8452	8452	24 for a public purpose.
8453	8453	25 In the case of an acquisition of property (or any right or
8454	8454	26 interest in property) for private ownership or control to be
8455	8455
8456	8456
8457	8457
8458	8458
8459	8459
8460	8460	SB3637 - 235 - LRB103 38841 CES 68978 b
8461	8461
8462	8462
8463	8463	SB3637- 236 -LRB103 38841 CES 68978 b SB3637 - 236 - LRB103 38841 CES 68978 b
8464	8464	SB3637 - 236 - LRB103 38841 CES 68978 b
8465	8465	1 used for utility, pipeline, or railroad purposes for which no
8466	8466	2 certificate or finding of public convenience and necessity by
8467	8467	3 the Illinois Commerce Commission is required, evidence that
8468	8468	4 the acquisition is one for which the use of eminent domain is
8469	8469	5 authorized under one of the following laws creates a
8470	8470	6 rebuttable presumption that the acquisition of that property
8471	8471	7 (or right or interest in property) is (i) primarily for the
8472	8472	8 benefit, use, or enjoyment of the public and (ii) necessary
8473	8473	9 for a public purpose:
8474	8474	10 (1) the Public Utilities Act,
8475	8475	11 (2) the Telephone Company Act,
8476	8476	12 (3) the Electric Supplier Act,
8477	8477	13 (4) the Railroad Terminal Authority Act,
8478	8478	14 (5) the Grand Avenue Railroad Relocation Authority
8479	8479	15 Act,
8480	8480	16 (6) the West Cook Railroad Relocation and Development
8481	8481	17 Authority Act,
8482	8482	18 (7) Section 4-505 of the Illinois Highway Code,
8483	8483	19 (8) Section 17 or 18 of the Railroad Incorporation
8484	8484	20 Act,
8485	8485	21 (9) Section 18c-7501 of the Illinois Vehicle Code.
8486	8486	22 (d) If the exercise of eminent domain authority is to
8487	8487	23 acquire property for private ownership or control and if the
8488	8488	24 primary basis for the acquisition is the elimination of blight
8489	8489	25 and the condemning authority elects to proceed under this
8490	8490	26 subsection, then the condemning authority must: (i) prove by a
8491	8491
8492	8492
8493	8493
8494	8494
8495	8495
8496	8496	SB3637 - 236 - LRB103 38841 CES 68978 b
8497	8497
8498	8498
8499	8499	SB3637- 237 -LRB103 38841 CES 68978 b SB3637 - 237 - LRB103 38841 CES 68978 b
8500	8500	SB3637 - 237 - LRB103 38841 CES 68978 b
8501	8501	1 preponderance of the evidence that acquisition of the property
8502	8502	2 for private ownership or control is necessary for a public
8503	8503	3 purpose; (ii) prove by a preponderance of the evidence that
8504	8504	4 the property to be acquired is located in an area that is
8505	8505	5 currently designated as a blighted area or conservation area
8506	8506	6 under an applicable statute; (iii) if the existence of blight
8507	8507	7 or blighting factors is challenged in an appropriate motion
8508	8508	8 filed within 6 months after the date of filing of the complaint
8509	8509	9 to condemn, prove by a preponderance of the evidence that the
8510	8510	10 required blighting factors existed in the area so designated
8511	8511	11 (but not necessarily in the particular property to be
8512	8512	12 acquired) at the time of the designation under item (ii) or at
8513	8513	13 any time thereafter; and (iv) prove by a preponderance of the
8514	8514	14 evidence at least one of the following:
8515	8515	15 (A) that it has entered into an express written
8516	8516	16 agreement in which a private person or entity agrees to
8517	8517	17 undertake a development project within the blighted area
8518	8518	18 that specifically details the reasons for which the
8519	8519	19 property or rights in that property are necessary for the
8520	8520	20 development project;
8521	8521	21 (B) that the exercise of eminent domain power and the
8522	8522	22 proposed use of the property by the condemning authority
8523	8523	23 are consistent with a regional plan that has been adopted
8524	8524	24 within the past 5 years in accordance with Section 5-14001
8525	8525	25 of the Counties Code or Section 11-12-6 of the Illinois
8526	8526	26 Municipal Code or with a local land resource management
8527	8527
8528	8528
8529	8529
8530	8530
8531	8531
8532	8532	SB3637 - 237 - LRB103 38841 CES 68978 b
8533	8533
8534	8534
8535	8535	SB3637- 238 -LRB103 38841 CES 68978 b SB3637 - 238 - LRB103 38841 CES 68978 b
8536	8536	SB3637 - 238 - LRB103 38841 CES 68978 b
8537	8537	1 plan adopted under Section 4 of the Local Land Resource
8538	8538	2 Management Planning Act; or
8539	8539	3 (C) that (1) the acquired property will be used in the
8540	8540	4 development of a project that is consistent with the land
8541	8541	5 uses set forth in a comprehensive redevelopment plan
8542	8542	6 prepared in accordance with the applicable statute
8543	8543	7 authorizing the condemning authority to exercise the power
8544	8544	8 of eminent domain and is consistent with the goals and
8545	8545	9 purposes of that comprehensive redevelopment plan, and (2)
8546	8546	10 an enforceable written agreement, deed restriction, or
8547	8547	11 similar encumbrance has been or will be executed and
8548	8548	12 recorded against the acquired property to assure that the
8549	8549	13 project and the use of the property remain consistent with
8550	8550	14 those land uses, goals, and purposes for a period of at
8551	8551	15 least 40 years, which execution and recording shall be
8552	8552	16 included as a requirement in any final order entered in
8553	8553	17 the condemnation proceeding.
8554	8554	18 The existence of an ordinance, resolution, or other
8555	8555	19 official act designating an area as blighted is not prima
8556	8556	20 facie evidence of the existence of blight. A finding by the
8557	8557	21 court in a condemnation proceeding that a property or area has
8558	8558	22 not been proven to be blighted does not apply to any other case
8559	8559	23 or undermine the designation of a blighted area or
8560	8560	24 conservation area or the determination of the existence of
8561	8561	25 blight for any other purpose or under any other statute,
8562	8562	26 including without limitation under the Tax Increment
8563	8563
8564	8564
8565	8565
8566	8566
8567	8567
8568	8568	SB3637 - 238 - LRB103 38841 CES 68978 b
8569	8569
8570	8570
8571	8571	SB3637- 239 -LRB103 38841 CES 68978 b SB3637 - 239 - LRB103 38841 CES 68978 b
8572	8572	SB3637 - 239 - LRB103 38841 CES 68978 b
8573	8573	1 Allocation Redevelopment Act (Article 11, Division 74.4 of the
8574	8574	2 Illinois Municipal Code).
8575	8575	3 Any challenge to the existence of blighting factors
8576	8576	4 alleged in a complaint to condemn under this subsection shall
8577	8577	5 be raised within 6 months of the filing date of the complaint
8578	8578	6 to condemn, and if not raised within that time the right to
8579	8579	7 challenge the existence of those blighting factors shall be
8580	8580	8 deemed waived.
8581	8581	9 (e) If the exercise of eminent domain authority is to
8582	8582	10 acquire property for private ownership or control and if the
8583	8583	11 primary purpose of the acquisition is one of the purposes
8584	8584	12 specified in item (iii) of this subsection and the condemning
8585	8585	13 authority elects to proceed under this subsection, then the
8586	8586	14 condemning authority must prove by a preponderance of the
8587	8587	15 evidence that: (i) the acquisition of the property is
8588	8588	16 necessary for a public purpose; (ii) an enforceable written
8589	8589	17 agreement, deed restriction, or similar encumbrance has been
8590	8590	18 or will be executed and recorded against the acquired property
8591	8591	19 to assure that the project and the use of the property remain
8592	8592	20 consistent with the applicable purpose specified in item (iii)
8593	8593	21 of this subsection for a period of at least 40 years, which
8594	8594	22 execution and recording shall be included as a requirement in
8595	8595	23 any final order entered in the condemnation proceeding; and
8596	8596	24 (iii) the acquired property will be one of the following:
8597	8597	25 (1) included in the project site for a residential
8598	8598	26 project, or a mixed-use project including residential
8599	8599
8600	8600
8601	8601
8602	8602
8603	8603
8604	8604	SB3637 - 239 - LRB103 38841 CES 68978 b
8605	8605
8606	8606
8607	8607	SB3637- 240 -LRB103 38841 CES 68978 b SB3637 - 240 - LRB103 38841 CES 68978 b
8608	8608	SB3637 - 240 - LRB103 38841 CES 68978 b
8609	8609	1 units, where not less than 20% of the residential units in
8610	8610	2 the project are made available, for at least 15 years, by
8611	8611	3 deed restriction, long-term lease, regulatory agreement,
8612	8612	4 extended use agreement, or a comparable recorded
8613	8613	5 encumbrance, to low-income households and very low-income
8614	8614	6 households, as defined in Section 3 of the Illinois
8615	8615	7 Affordable Housing Act;
8616	8616	8 (2) used primarily for public airport, road, parking,
8617	8617	9 or mass transportation purposes and sold or leased to a
8618	8618	10 private party in a sale-leaseback, lease-leaseback, or
8619	8619	11 similar structured financing;
8620	8620	12 (3) owned or used by a public utility or electric
8621	8621	13 cooperative for utility purposes;
8622	8622	14 (4) owned or used by a railroad for passenger or
8623	8623	15 freight transportation purposes;
8624	8624	16 (5) sold or leased to a private party that operates a
8625	8625	17 water supply, waste water, recycling, waste disposal,
8626	8626	18 waste-to-energy, or similar facility;
8627	8627	19 (6) sold or leased to a not-for-profit corporation
8628	8628	20 whose purposes include the preservation of open space, the
8629	8629	21 operation of park space, and similar public purposes;
8630	8630	22 (7) used as a library, museum, or related facility, or
8631	8631	23 as infrastructure related to such a facility;
8632	8632	24 (8) used by a private party for the operation of a
8633	8633	25 charter school open to the general public; or
8634	8634	26 (9) a historic resource, as defined in Section 3 of
8635	8635
8636	8636
8637	8637
8638	8638
8639	8639
8640	8640	SB3637 - 240 - LRB103 38841 CES 68978 b
8641	8641
8642	8642
8643	8643	SB3637- 241 -LRB103 38841 CES 68978 b SB3637 - 241 - LRB103 38841 CES 68978 b
8644	8644	SB3637 - 241 - LRB103 38841 CES 68978 b
8645	8645	1 the Illinois State Agency Historic Resources Preservation
8646	8646	2 Act, a landmark designated as such under a local
8647	8647	3 ordinance, or a contributing structure within a local
8648	8648	4 landmark district listed on the National Register of
8649	8649	5 Historic Places, that is being acquired for purposes of
8650	8650	6 preservation or rehabilitation.
8651	8651	7 (f) If the exercise of eminent domain authority is to
8652	8652	8 acquire property for public ownership and private control and
8653	8653	9 if the primary purpose of the acquisition is one of the
8654	8654	10 purposes specified in item (iii) of this subsection and the
8655	8655	11 condemning authority elects to proceed under this subsection,
8656	8656	12 then the condemning authority must prove by a preponderance of
8657	8657	13 the evidence that: (i) the acquisition of the property is
8658	8658	14 necessary for a public purpose; (ii) the acquired property
8659	8659	15 will be owned by the condemning authority or another
8660	8660	16 governmental entity; and (iii) the acquired property will be
8661	8661	17 controlled by a private party that operates a business or
8662	8662	18 facility related to the condemning authority's operation of a
8663	8663	19 university, medical district, hospital, exposition or
8664	8664	20 convention center, mass transportation facility, or airport,
8665	8665	21 including, but not limited to, a medical clinic, research and
8666	8666	22 development center, food or commercial concession facility,
8667	8667	23 social service facility, maintenance or storage facility,
8668	8668	24 cargo facility, rental car facility, bus facility, taxi
8669	8669	25 facility, flight kitchen, fixed based operation, parking
8670	8670	26 facility, refueling facility, water supply facility, and
8671	8671
8672	8672
8673	8673
8674	8674
8675	8675
8676	8676	SB3637 - 241 - LRB103 38841 CES 68978 b
8677	8677
8678	8678
8679	8679	SB3637- 242 -LRB103 38841 CES 68978 b SB3637 - 242 - LRB103 38841 CES 68978 b
8680	8680	SB3637 - 242 - LRB103 38841 CES 68978 b
8681	8681	1 railroad tracks and stations.
8682	8682	2 (f-5) For all acquisitions governed by subsection (c)
8683	8683	3 where the property, or any right or interest in property, is to
8684	8684	4 be used for utility purposes, and where the condemning
8685	8685	5 authority is an entity required to submit an integrated
8686	8686	6 resource plan under the Municipal and Cooperative Electric
8687	8687	7 Utility Planning and Transparency Act, the rebuttable
8688	8688	8 presumption described in subsection (c) shall only apply if
8689	8689	9 the most recent integrated resource plan filed by the
8690	8690	10 condemning authority identified the facility or articulated a
8691	8691	11 need for a facility of similar capacity and type to the
8692	8692	12 facility for which the property or right or interest is
8693	8693	13 sought.
8694	8694	14 (g) This Article is a limitation on the exercise of the
8695	8695	15 power of eminent domain, but is not an independent grant of
8696	8696	16 authority to exercise the power of eminent domain.
8697	8697	17 (Source: P.A. 94-1055, eff. 1-1-07.)
8698	8698	SB3637- 243 -LRB103 38841 CES 68978 b 1 INDEX 2 Statutes amended in order of appearance SB3637- 243 -LRB103 38841 CES 68978 b SB3637 - 243 - LRB103 38841 CES 68978 b 1 INDEX 2 Statutes amended in order of appearance
8699	8699	SB3637- 243 -LRB103 38841 CES 68978 b SB3637 - 243 - LRB103 38841 CES 68978 b
8700	8700	SB3637 - 243 - LRB103 38841 CES 68978 b
8701	8701	1 INDEX
8702	8702	2 Statutes amended in order of appearance
8703	8703
8704	8704
8705	8705
8706	8706
8707	8707
8708	8708	SB3637 - 242 - LRB103 38841 CES 68978 b
8709	8709
8710	8710
8711	8711
8712	8712	SB3637- 243 -LRB103 38841 CES 68978 b SB3637 - 243 - LRB103 38841 CES 68978 b
8713	8713	SB3637 - 243 - LRB103 38841 CES 68978 b
8714	8714	1 INDEX
8715	8715	2 Statutes amended in order of appearance
8716	8716
8717	8717
8718	8718
8719	8719
8720	8720
8721	8721	SB3637 - 243 - LRB103 38841 CES 68978 b