Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3949 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 SB3949 Introduced 5/8/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: See Index Provides that the amendatory Act may be referred to as the Transmission for Transition Law. Amends the Illinois Enterprise Zone Act. Provides that the Department of Commerce and Economic Opportunity is authorized to receive and approve applications for the designation of "High Impact Businesses" if the business intends to construct a new high voltage direct current converter station facility at a designated location in Illinois. Amends the Illinois Power Agency Act. Provides that the long-term renewable resources procurement plan shall include the procurement of renewable energy credits from high voltage direct current renewable energy credits. Provides that the Illinois Power Agency shall conduct at least one forward procurement for high voltage direct current renewable energy credits within 240 days after the effective date of the amendatory Act. Sets forth procedures for application and bidding. Provides that, no later than December 1, 2024, the Agency shall create and issue a report that describes how transmission systems limit the ability of electric utilities to meet renewable resource procurement goals. Makes changes in provisions concerning legislative declarations and findings and definitions. Makes conforming changes. Amends the Public Utilities Act. Provides that an electric utility that has entered into a contract to purchase high voltage direct current renewable energy credits shall be entitled to recover through tariffed charges all costs related to the purchase of high voltage direct current renewable energy credits under the contract. Provides that an entity that received a contract to provide high voltage direct current renewable energy credits and the associated high voltage direct current transmission lines shall not be obligated to submit an annual supplier diversity report to the Illinois Commerce Commission. Makes changes to provisions concerning definitions. Amends the Prevailing Wage Act to make a conforming change. Effective immediately. LRB103 40603 LNS 73240 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3949 Introduced 5/8/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: See Index See Index Provides that the amendatory Act may be referred to as the Transmission for Transition Law. Amends the Illinois Enterprise Zone Act. Provides that the Department of Commerce and Economic Opportunity is authorized to receive and approve applications for the designation of "High Impact Businesses" if the business intends to construct a new high voltage direct current converter station facility at a designated location in Illinois. Amends the Illinois Power Agency Act. Provides that the long-term renewable resources procurement plan shall include the procurement of renewable energy credits from high voltage direct current renewable energy credits. Provides that the Illinois Power Agency shall conduct at least one forward procurement for high voltage direct current renewable energy credits within 240 days after the effective date of the amendatory Act. Sets forth procedures for application and bidding. Provides that, no later than December 1, 2024, the Agency shall create and issue a report that describes how transmission systems limit the ability of electric utilities to meet renewable resource procurement goals. Makes changes in provisions concerning legislative declarations and findings and definitions. Makes conforming changes. Amends the Public Utilities Act. Provides that an electric utility that has entered into a contract to purchase high voltage direct current renewable energy credits shall be entitled to recover through tariffed charges all costs related to the purchase of high voltage direct current renewable energy credits under the contract. Provides that an entity that received a contract to provide high voltage direct current renewable energy credits and the associated high voltage direct current transmission lines shall not be obligated to submit an annual supplier diversity report to the Illinois Commerce Commission. Makes changes to provisions concerning definitions. Amends the Prevailing Wage Act to make a conforming change. Effective immediately. LRB103 40603 LNS 73240 b LRB103 40603 LNS 73240 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3949 Introduced 5/8/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Provides that the amendatory Act may be referred to as the Transmission for Transition Law. Amends the Illinois Enterprise Zone Act. Provides that the Department of Commerce and Economic Opportunity is authorized to receive and approve applications for the designation of "High Impact Businesses" if the business intends to construct a new high voltage direct current converter station facility at a designated location in Illinois. Amends the Illinois Power Agency Act. Provides that the long-term renewable resources procurement plan shall include the procurement of renewable energy credits from high voltage direct current renewable energy credits. Provides that the Illinois Power Agency shall conduct at least one forward procurement for high voltage direct current renewable energy credits within 240 days after the effective date of the amendatory Act. Sets forth procedures for application and bidding. Provides that, no later than December 1, 2024, the Agency shall create and issue a report that describes how transmission systems limit the ability of electric utilities to meet renewable resource procurement goals. Makes changes in provisions concerning legislative declarations and findings and definitions. Makes conforming changes. Amends the Public Utilities Act. Provides that an electric utility that has entered into a contract to purchase high voltage direct current renewable energy credits shall be entitled to recover through tariffed charges all costs related to the purchase of high voltage direct current renewable energy credits under the contract. Provides that an entity that received a contract to provide high voltage direct current renewable energy credits and the associated high voltage direct current transmission lines shall not be obligated to submit an annual supplier diversity report to the Illinois Commerce Commission. Makes changes to provisions concerning definitions. Amends the Prevailing Wage Act to make a conforming change. Effective immediately.
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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. References to Act. This Act may be referred to
15	15	5 as the Transmission for Transition Law.
16	16	6 Section 5. Findings. The General Assembly finds and
17	17	7 determines that:
18	18	8 (1) Illinois is committed to addressing climate change
19	19	9 through the development and delivery of renewable energy
20	20	10 resources.
21	21	11 (2) A robust transmission system is critical to the
22	22	12 State's regional and national economic and energy
23	23	13 security.
24	24	14 (3) Deploying interregional transmission,
25	25	15 specifically high voltage direct current transmission
26	26	16 lines connecting multiple independent system operator
27	27	17 service areas or regional transmission organization
28	28	18 service areas, so that abundant, high-capacity renewable
29	29	19 energy resources are connected to demand centers, will
30	30	20 increase the reliability and resilience of the electric
31	31	21 grid.
32	32	22 (4) The United States Department of Energy has
33	33	23 determined that increased transmission is a cost-effective
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3949 Introduced 5/8/2024, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Provides that the amendatory Act may be referred to as the Transmission for Transition Law. Amends the Illinois Enterprise Zone Act. Provides that the Department of Commerce and Economic Opportunity is authorized to receive and approve applications for the designation of "High Impact Businesses" if the business intends to construct a new high voltage direct current converter station facility at a designated location in Illinois. Amends the Illinois Power Agency Act. Provides that the long-term renewable resources procurement plan shall include the procurement of renewable energy credits from high voltage direct current renewable energy credits. Provides that the Illinois Power Agency shall conduct at least one forward procurement for high voltage direct current renewable energy credits within 240 days after the effective date of the amendatory Act. Sets forth procedures for application and bidding. Provides that, no later than December 1, 2024, the Agency shall create and issue a report that describes how transmission systems limit the ability of electric utilities to meet renewable resource procurement goals. Makes changes in provisions concerning legislative declarations and findings and definitions. Makes conforming changes. Amends the Public Utilities Act. Provides that an electric utility that has entered into a contract to purchase high voltage direct current renewable energy credits shall be entitled to recover through tariffed charges all costs related to the purchase of high voltage direct current renewable energy credits under the contract. Provides that an entity that received a contract to provide high voltage direct current renewable energy credits and the associated high voltage direct current transmission lines shall not be obligated to submit an annual supplier diversity report to the Illinois Commerce Commission. Makes changes to provisions concerning definitions. Amends the Prevailing Wage Act to make a conforming change. Effective immediately.
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43	43	A BILL FOR
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49	49	See Index
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68	68	1 means to access low-cost renewable generation to serve
69	69	2 load centers and facilitate the transition to clean
70	70	3 energy.
71	71	4 (5) The Illinois Commerce Commission's Renewable
72	72	5 Energy Access Plan recommends the development of a
73	73	6 strategy for proactive interregional transmission
74	74	7 planning.
75	75	8 (6) Meeting the State's decarbonization goals with
76	76	9 geographically diverse renewable energy resources will
77	77	10 require long-term procurement of renewable energy
78	78	11 resources and infrastructure necessary to transmit those
79	79	12 renewable energy resources.
80	80	13 (7) The health, welfare, and prosperity of the
81	81	14 residents of the State will improve if new interregional
82	82	15 transmission projects bring renewable resources from
83	83	16 geographically diverse sources to the State.
84	84	17 (8) It is beneficial for new transmission projects to
85	85	18 transmit renewable energy resources procured by the
86	86	19 Illinois Power Agency on behalf of the residents and
87	87	20 ratepayers of the State. New transmission projects
88	88	21 participating in Agency procurements or delivering
89	89	22 renewable energy resources procured by the Illinois Power
90	90	23 Agency can provide significant economic benefits to equity
91	91	24 investment eligible communities, equity eligible persons,
92	92	25 minority-owned businesses, women-owned businesses, and
93	93	26 other economically disadvantaged populations and
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104	104	1 businesses.
105	105	2 (9) New interregional transmission projects create
106	106	3 economic opportunity and thousands of new
107	107	4 family-sustaining jobs to construct the projects.
108	108	5 (10) The State and all of its residents will benefit
109	109	6 from the development of interregional high voltage direct
110	110	7 current transmission facilities.
111	111	8 Therefore, the General Assembly finds that it is necessary
112	112	9 to enact this Act to encourage the responsible development of
113	113	10 high voltage direct current transmission lines in the State in
114	114	11 pursuit of an affordable, reliable transition to a clean
115	115	12 energy future.
116	116	13 Section 10. The Illinois Enterprise Zone Act is amended by
117	117	14 changing Section 5.5 as follows:
118	118	15 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
119	119	16 Sec. 5.5. High Impact Business.
120	120	17 (a) In order to respond to unique opportunities to assist
121	121	18 in the encouragement, development, growth, and expansion of
122	122	19 the private sector through large scale investment and
123	123	20 development projects, the Department is authorized to receive
124	124	21 and approve applications for the designation of "High Impact
125	125	22 Businesses" in Illinois, for an initial term of 20 years with
126	126	23 an option for renewal for a term not to exceed 20 years,
127	127	24 subject to the following conditions:
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138	138	1 (1) such applications may be submitted at any time
139	139	2 during the year;
140	140	3 (2) such business is not located, at the time of
141	141	4 designation, in an enterprise zone designated pursuant to
142	142	5 this Act;
143	143	6 (3) the business intends to do, commits to do, or is
144	144	7 one or more of the following:
145	145	8 (A) the business intends to make a minimum
146	146	9 investment of $12,000,000 which will be placed in
147	147	10 service in qualified property and intends to create
148	148	11 500 full-time equivalent jobs at a designated location
149	149	12 in Illinois or intends to make a minimum investment of
150	150	13 $30,000,000 which will be placed in service in
151	151	14 qualified property and intends to retain 1,500
152	152	15 full-time retained jobs at a designated location in
153	153	16 Illinois. The terms "placed in service" and "qualified
154	154	17 property" have the same meanings as described in
155	155	18 subsection (h) of Section 201 of the Illinois Income
156	156	19 Tax Act; or
157	157	20 (B) the business intends to establish a new
158	158	21 electric generating facility at a designated location
159	159	22 in Illinois. "New electric generating facility", for
160	160	23 purposes of this Section, means a newly constructed
161	161	24 electric generation plant or a newly constructed
162	162	25 generation capacity expansion at an existing electric
163	163	26 generation plant, including the transmission lines and
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174	174	1 associated equipment that transfers electricity from
175	175	2 points of supply to points of delivery, and for which
176	176	3 such new foundation construction commenced not sooner
177	177	4 than July 1, 2001. Such facility shall be designed to
178	178	5 provide baseload electric generation and shall operate
179	179	6 on a continuous basis throughout the year; and (i)
180	180	7 shall have an aggregate rated generating capacity of
181	181	8 at least 1,000 megawatts for all new units at one site
182	182	9 if it uses natural gas as its primary fuel and
183	183	10 foundation construction of the facility is commenced
184	184	11 on or before December 31, 2004, or shall have an
185	185	12 aggregate rated generating capacity of at least 400
186	186	13 megawatts for all new units at one site if it uses coal
187	187	14 or gases derived from coal as its primary fuel and
188	188	15 shall support the creation of at least 150 new
189	189	16 Illinois coal mining jobs, or (ii) shall be funded
190	190	17 through a federal Department of Energy grant before
191	191	18 December 31, 2010 and shall support the creation of
192	192	19 Illinois coal mining coal-mining jobs, or (iii) shall
193	193	20 use coal gasification or integrated
194	194	21 gasification-combined cycle units that generate
195	195	22 electricity or chemicals, or both, and shall support
196	196	23 the creation of Illinois coal mining coal-mining jobs.
197	197	24 The term "placed in service" has the same meaning as
198	198	25 described in subsection (h) of Section 201 of the
199	199	26 Illinois Income Tax Act; or
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210	210	1 (B-5) the business intends to establish a new
211	211	2 gasification facility at a designated location in
212	212	3 Illinois. As used in this Section, "new gasification
213	213	4 facility" means a newly constructed coal gasification
214	214	5 facility that generates chemical feedstocks or
215	215	6 transportation fuels derived from coal (which may
216	216	7 include, but are not limited to, methane, methanol,
217	217	8 and nitrogen fertilizer), that supports the creation
218	218	9 or retention of Illinois coal mining coal-mining jobs,
219	219	10 and that qualifies for financial assistance from the
220	220	11 Department before December 31, 2010. A new
221	221	12 gasification facility does not include a pilot project
222	222	13 located within Jefferson County or within a county
223	223	14 adjacent to Jefferson County for synthetic natural gas
224	224	15 from coal; or
225	225	16 (C) the business intends to establish production
226	226	17 operations at a new coal mine, re-establish production
227	227	18 operations at a closed coal mine, or expand production
228	228	19 at an existing coal mine at a designated location in
229	229	20 Illinois not sooner than July 1, 2001; provided that
230	230	21 the production operations result in the creation of
231	231	22 150 new Illinois coal mining jobs as described in
232	232	23 subdivision (a)(3)(B) of this Section, and further
233	233	24 provided that the coal extracted from such mine is
234	234	25 utilized as the predominant source for a new electric
235	235	26 generating facility. The term "placed in service" has
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246	246	1 the same meaning as described in subsection (h) of
247	247	2 Section 201 of the Illinois Income Tax Act; or
248	248	3 (D) the business intends to construct new
249	249	4 transmission facilities or upgrade existing
250	250	5 transmission facilities at designated locations in
251	251	6 Illinois, for which construction commenced not sooner
252	252	7 than July 1, 2001. For the purposes of this Section,
253	253	8 "transmission facilities" means transmission lines
254	254	9 with a voltage rating of 115 kilovolts or above,
255	255	10 including associated equipment, that transfer
256	256	11 electricity from points of supply to points of
257	257	12 delivery and that transmit a majority of the
258	258	13 electricity generated by a new electric generating
259	259	14 facility designated as a High Impact Business in
260	260	15 accordance with this Section. The term "placed in
261	261	16 service" has the same meaning as described in
262	262	17 subsection (h) of Section 201 of the Illinois Income
263	263	18 Tax Act; or
264	264	19 (E) the business intends to establish a new wind
265	265	20 power facility at a designated location in Illinois.
266	266	21 For purposes of this Section, "new wind power
267	267	22 facility" means a newly constructed electric
268	268	23 generation facility, a newly constructed expansion of
269	269	24 an existing electric generation facility, or the
270	270	25 replacement of an existing electric generation
271	271	26 facility, including the demolition and removal of an
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282	282	1 electric generation facility irrespective of whether
283	283	2 it will be replaced, placed in service or replaced on
284	284	3 or after July 1, 2009, that generates electricity
285	285	4 using wind energy devices, and such facility shall be
286	286	5 deemed to include any permanent structures associated
287	287	6 with the electric generation facility and all
288	288	7 associated transmission lines, substations, and other
289	289	8 equipment related to the generation of electricity
290	290	9 from wind energy devices. For purposes of this
291	291	10 Section, "wind energy device" means any device, with a
292	292	11 nameplate capacity of at least 0.5 megawatts, that is
293	293	12 used in the process of converting kinetic energy from
294	294	13 the wind to generate electricity; or
295	295	14 (E-5) the business intends to establish a new
296	296	15 utility-scale solar facility at a designated location
297	297	16 in Illinois. For purposes of this Section, "new
298	298	17 utility-scale solar power facility" means a newly
299	299	18 constructed electric generation facility, or a newly
300	300	19 constructed expansion of an existing electric
301	301	20 generation facility, placed in service on or after
302	302	21 July 1, 2021, that (i) generates electricity using
303	303	22 photovoltaic cells and (ii) has a nameplate capacity
304	304	23 that is greater than 5,000 kilowatts, and such
305	305	24 facility shall be deemed to include all associated
306	306	25 transmission lines, substations, energy storage
307	307	26 facilities, and other equipment related to the
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318	318	1 generation and storage of electricity from
319	319	2 photovoltaic cells; or
320	320	3 (F) the business commits to (i) make a minimum
321	321	4 investment of $500,000,000, which will be placed in
322	322	5 service in a qualified property, (ii) create 125
323	323	6 full-time equivalent jobs at a designated location in
324	324	7 Illinois, (iii) establish a fertilizer plant at a
325	325	8 designated location in Illinois that complies with the
326	326	9 set-back standards as described in Table 1: Initial
327	327	10 Isolation and Protective Action Distances in the 2012
328	328	11 Emergency Response Guidebook published by the United
329	329	12 States Department of Transportation, (iv) pay a
330	330	13 prevailing wage for employees at that location who are
331	331	14 engaged in construction activities, and (v) secure an
332	332	15 appropriate level of general liability insurance to
333	333	16 protect against catastrophic failure of the fertilizer
334	334	17 plant or any of its constituent systems; in addition,
335	335	18 the business must agree to enter into a construction
336	336	19 project labor agreement including provisions
337	337	20 establishing wages, benefits, and other compensation
338	338	21 for employees performing work under the project labor
339	339	22 agreement at that location; for the purposes of this
340	340	23 Section, "fertilizer plant" means a newly constructed
341	341	24 or upgraded plant utilizing gas used in the production
342	342	25 of anhydrous ammonia and downstream nitrogen
343	343	26 fertilizer products for resale; for the purposes of
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354	354	1 this Section, "prevailing wage" means the hourly cash
355	355	2 wages plus fringe benefits for training and
356	356	3 apprenticeship programs approved by the U.S.
357	357	4 Department of Labor, Bureau of Apprenticeship and
358	358	5 Training, health and welfare, insurance, vacations and
359	359	6 pensions paid generally, in the locality in which the
360	360	7 work is being performed, to employees engaged in work
361	361	8 of a similar character on public works; this paragraph
362	362	9 (F) applies only to businesses that submit an
363	363	10 application to the Department within 60 days after
364	364	11 July 25, 2013 (the effective date of Public Act
365	365	12 98-109); or
366	366	13 (G) the business intends to establish a new
367	367	14 cultured cell material food production facility at a
368	368	15 designated location in Illinois. As used in this
369	369	16 paragraph (G):
370	370	17 "Cultured cell material food production facility"
371	371	18 means a facility (i) at which cultured animal cell
372	372	19 food is developed using animal cell culture
373	373	20 technology, (ii) at which production processes occur
374	374	21 that include the establishment of cell lines and cell
375	375	22 banks, manufacturing controls, and all components and
376	376	23 inputs, and (iii) that complies with all existing
377	377	24 registrations, inspections, licensing, and approvals
378	378	25 from all applicable and participating State and
379	379	26 federal food agencies, including the Department of
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390	390	1 Agriculture, the Department of Public Health, and the
391	391	2 United States Food and Drug Administration, to ensure
392	392	3 that all food production is safe and lawful under
393	393	4 provisions of the Federal Food, Drug and Cosmetic Act
394	394	5 related to the development, production, and storage of
395	395	6 cultured animal cell food.
396	396	7 "New cultured cell material food production
397	397	8 facility" means a newly constructed cultured cell
398	398	9 material food production facility that is placed in
399	399	10 service on or after June 7, 2023 (the effective date of
400	400	11 Public Act 103-9) this amendatory Act of the 103rd
401	401	12 General Assembly or a newly constructed expansion of
402	402	13 an existing cultured cell material food production
403	403	14 facility, in a controlled environment, when the
404	404	15 improvements are placed in service on or after June 7,
405	405	16 2023 (the effective date of Public Act 103-9) this
406	406	17 amendatory Act of the 103rd General Assembly; or and
407	407	18 (H) (G) the business is an existing or planned
408	408	19 grocery store, as that term is defined in Section 5 of
409	409	20 the Grocery Initiative Act, and receives financial
410	410	21 support under that Act within the 10 years before
411	411	22 submitting its application under this Act; or and
412	412	23 (I) the business intends to construct a new high
413	413	24 voltage direct current converter station facility at a
414	414	25 designated location in Illinois. As used in this
415	415	26 paragraph, "high voltage direct current converter
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426	426	1 station" has the same meaning given to that term in
427	427	2 Section 1-10 of the Illinois Power Act; and
428	428	3 (4) no later than 90 days after an application is
429	429	4 submitted, the Department shall notify the applicant of
430	430	5 the Department's determination of the qualification of the
431	431	6 proposed High Impact Business under this Section.
432	432	7 (b) Businesses designated as High Impact Businesses
433	433	8 pursuant to subdivision (a)(3)(A) of this Section shall
434	434	9 qualify for the credits and exemptions described in the
435	435	10 following Acts: Section 9-222 and Section 9-222.1A of the
436	436	11 Public Utilities Act, subsection (h) of Section 201 of the
437	437	12 Illinois Income Tax Act, and Section 1d of the Retailers'
438	438	13 Occupation Tax Act; provided that these credits and exemptions
439	439	14 described in these Acts shall not be authorized until the
440	440	15 minimum investments set forth in subdivision (a)(3)(A) of this
441	441	16 Section have been placed in service in qualified properties
442	442	17 and, in the case of the exemptions described in the Public
443	443	18 Utilities Act and Section 1d of the Retailers' Occupation Tax
444	444	19 Act, the minimum full-time equivalent jobs or full-time
445	445	20 retained jobs set forth in subdivision (a)(3)(A) of this
446	446	21 Section have been created or retained. Businesses designated
447	447	22 as High Impact Businesses under this Section shall also
448	448	23 qualify for the exemption described in Section 5l of the
449	449	24 Retailers' Occupation Tax Act. The credit provided in
450	450	25 subsection (h) of Section 201 of the Illinois Income Tax Act
451	451	26 shall be applicable to investments in qualified property as
452	452
453	453
454	454
455	455
456	456
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458	458
459	459
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461	461	SB3949 - 13 - LRB103 40603 LNS 73240 b
462	462	1 set forth in subdivision (a)(3)(A) of this Section.
463	463	2 (b-5) Businesses designated as High Impact Businesses
464	464	3 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
465	465	4 (a)(3)(D), and (a)(3)(G), and (a)(3)(H) of this Section shall
466	466	5 qualify for the credits and exemptions described in the
467	467	6 following Acts: Section 51 of the Retailers' Occupation Tax
468	468	7 Act, Section 9-222 and Section 9-222.1A of the Public
469	469	8 Utilities Act, and subsection (h) of Section 201 of the
470	470	9 Illinois Income Tax Act; however, the credits and exemptions
471	471	10 authorized under Section 9-222 and Section 9-222.1A of the
472	472	11 Public Utilities Act, and subsection (h) of Section 201 of the
473	473	12 Illinois Income Tax Act shall not be authorized until the new
474	474	13 electric generating facility, the new gasification facility,
475	475	14 the new transmission facility, the new, expanded, or reopened
476	476	15 coal mine, or the new cultured cell material food production
477	477	16 facility, or the existing or planned grocery store is
478	478	17 operational, except that a new electric generating facility
479	479	18 whose primary fuel source is natural gas is eligible only for
480	480	19 the exemption under Section 5l of the Retailers' Occupation
481	481	20 Tax Act.
482	482	21 (b-6) Businesses designated as High Impact Businesses
483	483	22 pursuant to subdivision (a)(3)(E), or (a)(3)(E-5), or
484	484	23 (a)(3)(I) of this Section shall qualify for the exemptions
485	485	24 described in Section 5l of the Retailers' Occupation Tax Act;
486	486	25 any business so designated as a High Impact Business being,
487	487	26 for purposes of this Section, a "Wind Energy Business".
488	488
489	489
490	490
491	491
492	492
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494	494
495	495
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497	497	SB3949 - 14 - LRB103 40603 LNS 73240 b
498	498	1 (b-7) Beginning on January 1, 2021, businesses designated
499	499	2 as High Impact Businesses by the Department shall qualify for
500	500	3 the High Impact Business construction jobs credit under
501	501	4 subsection (h-5) of Section 201 of the Illinois Income Tax Act
502	502	5 if the business meets the criteria set forth in subsection (i)
503	503	6 of this Section. The total aggregate amount of credits awarded
504	504	7 under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
505	505	8 shall not exceed $20,000,000 in any State fiscal year.
506	506	9 (c) High Impact Businesses located in federally designated
507	507	10 foreign trade zones or sub-zones are also eligible for
508	508	11 additional credits, exemptions and deductions as described in
509	509	12 the following Acts: Section 9-221 and Section 9-222.1 of the
510	510	13 Public Utilities Act; and subsection (g) of Section 201, and
511	511	14 Section 203 of the Illinois Income Tax Act.
512	512	15 (d) Except for businesses contemplated under subdivision
513	513	16 (a)(3)(D), (a)(3)(E), (a)(3)(E-5), or (a)(3)(G), (a)(3)(H), or
514	514	17 (a)(3)(I) of this Section, existing Illinois businesses which
515	515	18 apply for designation as a High Impact Business must provide
516	516	19 the Department with the prospective plan for which 1,500
517	517	20 full-time retained jobs would be eliminated in the event that
518	518	21 the business is not designated.
519	519	22 (e) Except for new businesses contemplated under
520	520	23 subdivision (a)(3)(D), (a)(3)(E), or subdivision (a)(3)(G),
521	521	24 (a)(3)(H), or (a)(3)(I) of this Section, new proposed
522	522	25 facilities which apply for designation as High Impact Business
523	523	26 must provide the Department with proof of alternative
524	524
525	525
526	526
527	527
528	528
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530	530
531	531
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533	533	SB3949 - 15 - LRB103 40603 LNS 73240 b
534	534	1 non-Illinois sites which would receive the proposed investment
535	535	2 and job creation in the event that the business is not
536	536	3 designated as a High Impact Business.
537	537	4 (f) Except for businesses contemplated under subdivision
538	538	5 (a)(3)(D), (a)(3)(E), or subdivision (a)(3)(G), (a)(3)(H), or
539	539	6 (a)(3)(I) of this Section, in the event that a business is
540	540	7 designated a High Impact Business and it is later determined
541	541	8 after reasonable notice and an opportunity for a hearing as
542	542	9 provided under the Illinois Administrative Procedure Act, that
543	543	10 the business would have placed in service in qualified
544	544	11 property the investments and created or retained the requisite
545	545	12 number of jobs without the benefits of the High Impact
546	546	13 Business designation, the Department shall be required to
547	547	14 immediately revoke the designation and notify the Director of
548	548	15 the Department of Revenue who shall begin proceedings to
549	549	16 recover all wrongfully exempted State taxes with interest. The
550	550	17 business shall also be ineligible for all State funded
551	551	18 Department programs for a period of 10 years.
552	552	19 (g) The Department shall revoke a High Impact Business
553	553	20 designation if the participating business fails to comply with
554	554	21 the terms and conditions of the designation.
555	555	22 (h) Prior to designating a business, the Department shall
556	556	23 provide the members of the General Assembly and Commission on
557	557	24 Government Forecasting and Accountability with a report
558	558	25 setting forth the terms and conditions of the designation and
559	559	26 guarantees that have been received by the Department in
560	560
561	561
562	562
563	563
564	564
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566	566
567	567
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569	569	SB3949 - 16 - LRB103 40603 LNS 73240 b
570	570	1 relation to the proposed business being designated.
571	571	2 (i) High Impact Business construction jobs credit.
572	572	3 Beginning on January 1, 2021, a High Impact Business may
573	573	4 receive a tax credit against the tax imposed under subsections
574	574	5 (a) and (b) of Section 201 of the Illinois Income Tax Act in an
575	575	6 amount equal to 50% of the amount of the incremental income tax
576	576	7 attributable to High Impact Business construction jobs credit
577	577	8 employees employed in the course of completing a High Impact
578	578	9 Business construction jobs project. However, the High Impact
579	579	10 Business construction jobs credit may equal 75% of the amount
580	580	11 of the incremental income tax attributable to High Impact
581	581	12 Business construction jobs credit employees if the High Impact
582	582	13 Business construction jobs credit project is located in an
583	583	14 underserved area.
584	584	15 The Department shall certify to the Department of Revenue:
585	585	16 (1) the identity of taxpayers that are eligible for the High
586	586	17 Impact Business construction jobs credit; and (2) the amount
587	587	18 of High Impact Business construction jobs credits that are
588	588	19 claimed pursuant to subsection (h-5) of Section 201 of the
589	589	20 Illinois Income Tax Act in each taxable year. Any business
590	590	21 entity that receives a High Impact Business construction jobs
591	591	22 credit shall maintain a certified payroll pursuant to
592	592	23 subsection (j) of this Section.
593	593	24 As used in this subsection (i):
594	594	25 "High Impact Business construction jobs credit" means an
595	595	26 amount equal to 50% (or 75% if the High Impact Business
596	596
597	597
598	598
599	599
600	600
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602	602
603	603
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605	605	SB3949 - 17 - LRB103 40603 LNS 73240 b
606	606	1 construction project is located in an underserved area) of the
607	607	2 incremental income tax attributable to High Impact Business
608	608	3 construction job employees. The total aggregate amount of
609	609	4 credits awarded under the Blue Collar Jobs Act (Article 20 of
610	610	5 Public Act 101-9) shall not exceed $20,000,000 in any State
611	611	6 fiscal year
612	612	7 "High Impact Business construction job employee" means a
613	613	8 laborer or worker who is employed by an Illinois contractor or
614	614	9 subcontractor in the actual construction work on the site of a
615	615	10 High Impact Business construction job project.
616	616	11 "High Impact Business construction jobs project" means
617	617	12 building a structure or building or making improvements of any
618	618	13 kind to real property, undertaken and commissioned by a
619	619	14 business that was designated as a High Impact Business by the
620	620	15 Department. The term "High Impact Business construction jobs
621	621	16 project" does not include the routine operation, routine
622	622	17 repair, or routine maintenance of existing structures,
623	623	18 buildings, or real property.
624	624	19 "Incremental income tax" means the total amount withheld
625	625	20 during the taxable year from the compensation of High Impact
626	626	21 Business construction job employees.
627	627	22 "Underserved area" means a geographic area that meets one
628	628	23 or more of the following conditions:
629	629	24 (1) the area has a poverty rate of at least 20%
630	630	25 according to the latest American Community Survey;
631	631	26 (2) 35% or more of the families with children in the
632	632
633	633
634	634
635	635
636	636
637	637	SB3949 - 17 - LRB103 40603 LNS 73240 b
638	638
639	639
640	640	SB3949- 18 -LRB103 40603 LNS 73240 b SB3949 - 18 - LRB103 40603 LNS 73240 b
641	641	SB3949 - 18 - LRB103 40603 LNS 73240 b
642	642	1 area are living below 130% of the poverty line, according
643	643	2 to the latest American Community Survey;
644	644	3 (3) at least 20% of the households in the area receive
645	645	4 assistance under the Supplemental Nutrition Assistance
646	646	5 Program (SNAP); or
647	647	6 (4) the area has an average unemployment rate, as
648	648	7 determined by the Illinois Department of Employment
649	649	8 Security, that is more than 120% of the national
650	650	9 unemployment average, as determined by the U.S. Department
651	651	10 of Labor, for a period of at least 2 consecutive calendar
652	652	11 years preceding the date of the application.
653	653	12 (j) Each contractor and subcontractor who is engaged in
654	654	13 and executing a High Impact Business construction Construction
655	655	14 jobs project, as defined under subsection (i) of this Section,
656	656	15 for a business that is entitled to a credit pursuant to
657	657	16 subsection (i) of this Section shall:
658	658	17 (1) make and keep, for a period of 5 years from the
659	659	18 date of the last payment made on or after June 5, 2019 (the
660	660	19 effective date of Public Act 101-9) on a contract or
661	661	20 subcontract for a High Impact Business construction jobs
662	662	21 project Construction Jobs Project, records for all
663	663	22 laborers and other workers employed by the contractor or
664	664	23 subcontractor on the project; the records shall include:
665	665	24 (A) the worker's name;
666	666	25 (B) the worker's address;
667	667	26 (C) the worker's telephone number, if available;
668	668
669	669
670	670
671	671
672	672
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674	674
675	675
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677	677	SB3949 - 19 - LRB103 40603 LNS 73240 b
678	678	1 (D) the worker's social security number;
679	679	2 (E) the worker's classification or
680	680	3 classifications;
681	681	4 (F) the worker's gross and net wages paid in each
682	682	5 pay period;
683	683	6 (G) the worker's number of hours worked each day;
684	684	7 (H) the worker's starting and ending times of work
685	685	8 each day;
686	686	9 (I) the worker's hourly wage rate;
687	687	10 (J) the worker's hourly overtime wage rate;
688	688	11 (K) the worker's race and ethnicity; and
689	689	12 (L) the worker's gender;
690	690	13 (2) no later than the 15th day of each calendar month,
691	691	14 provide a certified payroll for the immediately preceding
692	692	15 month to the taxpayer in charge of the High Impact
693	693	16 Business construction jobs project; within 5 business days
694	694	17 after receiving the certified payroll, the taxpayer shall
695	695	18 file the certified payroll with the Department of Labor
696	696	19 and the Department of Commerce and Economic Opportunity; a
697	697	20 certified payroll must be filed for only those calendar
698	698	21 months during which construction on a High Impact Business
699	699	22 construction jobs project has occurred; the certified
700	700	23 payroll shall consist of a complete copy of the records
701	701	24 identified in paragraph (1) of this subsection (j), but
702	702	25 may exclude the starting and ending times of work each
703	703	26 day; the certified payroll shall be accompanied by a
704	704
705	705
706	706
707	707
708	708
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710	710
711	711
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713	713	SB3949 - 20 - LRB103 40603 LNS 73240 b
714	714	1 statement signed by the contractor or subcontractor or an
715	715	2 officer, employee, or agent of the contractor or
716	716	3 subcontractor which avers that:
717	717	4 (A) he or she has examined the certified payroll
718	718	5 records required to be submitted by the Act and such
719	719	6 records are true and accurate; and
720	720	7 (B) the contractor or subcontractor is aware that
721	721	8 filing a certified payroll that he or she knows to be
722	722	9 false is a Class A misdemeanor.
723	723	10 A general contractor is not prohibited from relying on a
724	724	11 certified payroll of a lower-tier subcontractor, provided the
725	725	12 general contractor does not knowingly rely upon a
726	726	13 subcontractor's false certification.
727	727	14 Any contractor or subcontractor subject to this
728	728	15 subsection, and any officer, employee, or agent of such
729	729	16 contractor or subcontractor whose duty as an officer,
730	730	17 employee, or agent it is to file a certified payroll under this
731	731	18 subsection, who willfully fails to file such a certified
732	732	19 payroll on or before the date such certified payroll is
733	733	20 required by this paragraph to be filed and any person who
734	734	21 willfully files a false certified payroll that is false as to
735	735	22 any material fact is in violation of this Act and guilty of a
736	736	23 Class A misdemeanor.
737	737	24 The taxpayer in charge of the project shall keep the
738	738	25 records submitted in accordance with this subsection on or
739	739	26 after June 5, 2019 (the effective date of Public Act 101-9) for
740	740
741	741
742	742
743	743
744	744
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746	746
747	747
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749	749	SB3949 - 21 - LRB103 40603 LNS 73240 b
750	750	1 a period of 5 years from the date of the last payment for work
751	751	2 on a contract or subcontract for the High Impact Business
752	752	3 construction jobs project.
753	753	4 The records submitted in accordance with this subsection
754	754	5 shall be considered public records, except an employee's
755	755	6 address, telephone number, and social security number, and
756	756	7 made available in accordance with the Freedom of Information
757	757	8 Act. The Department of Labor shall share the information with
758	758	9 the Department in order to comply with the awarding of a High
759	759	10 Impact Business construction jobs credit. A contractor,
760	760	11 subcontractor, or public body may retain records required
761	761	12 under this Section in paper or electronic format.
762	762	13 (k) Upon 7 business days' notice, each contractor and
763	763	14 subcontractor shall make available for inspection and copying
764	764	15 at a location within this State during reasonable hours, the
765	765	16 records identified in this subsection (j) to the taxpayer in
766	766	17 charge of the High Impact Business construction jobs project,
767	767	18 its officers and agents, the Director of the Department of
768	768	19 Labor and his or her deputies and agents, and to federal,
769	769	20 State, or local law enforcement agencies and prosecutors.
770	770	21 (l) The changes made to this Section by Public Act
771	771	22 102-1125 this amendatory Act of the 102nd General Assembly,
772	772	23 other than the changes in subsection (a), apply to High Impact
773	773	24 Businesses high impact businesses that submit applications on
774	774	25 or after February 3, 2023 (the effective date of Public Act
775	775	26 102-1125) this amendatory Act of the 102nd General Assembly.
776	776
777	777
778	778
779	779
780	780
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782	782
783	783
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785	785	SB3949 - 22 - LRB103 40603 LNS 73240 b
786	786	1 (Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
787	787	2 102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
788	788	3 11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
789	789	4 eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.)
790	790	5 Section 15. The Illinois Power Agency Act is amended by
791	791	6 changing Sections 1-5, 1-10, and 1-75 and by adding Section
792	792	7 1-126 as follows:
793	793	8 (20 ILCS 3855/1-5)
794	794	9 Sec. 1-5. Legislative declarations and findings. The
795	795	10 General Assembly finds and declares:
796	796	11 (1) The health, welfare, and prosperity of all
797	797	12 Illinois residents require the provision of adequate,
798	798	13 reliable, affordable, efficient, and environmentally
799	799	14 sustainable electric service at the lowest total cost over
800	800	15 time, taking into account any benefits of price stability.
801	801	16 (1.5) To provide the highest quality of life for the
802	802	17 residents of Illinois and to provide for a clean and
803	803	18 healthy environment, it is the policy of this State to
804	804	19 rapidly transition to 100% clean energy by 2050.
805	805	20 (2) (Blank).
806	806	21 (3) (Blank).
807	807	22 (4) It is necessary to improve the process of
808	808	23 procuring electricity to serve Illinois residents, to
809	809	24 promote investment in energy efficiency and
810	810
811	811
812	812
813	813
814	814
815	815	SB3949 - 22 - LRB103 40603 LNS 73240 b
816	816
817	817
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819	819	SB3949 - 23 - LRB103 40603 LNS 73240 b
820	820	1 demand-response measures, and to maintain and support
821	821	2 development of clean coal technologies, generation
822	822	3 resources that operate at all hours of the day and under
823	823	4 all weather conditions, zero emission facilities, and
824	824	5 renewable resources.
825	825	6 (5) Procuring a diverse electricity supply portfolio
826	826	7 will ensure the lowest total cost over time for adequate,
827	827	8 reliable, efficient, and environmentally sustainable
828	828	9 electric service.
829	829	10 (6) Including renewable resources and zero emission
830	830	11 credits from zero emission facilities in that portfolio
831	831	12 will reduce long-term direct and indirect costs to
832	832	13 consumers by decreasing environmental impacts and by
833	833	14 avoiding or delaying the need for new generation,
834	834	15 transmission, and distribution infrastructure. Developing
835	835	16 new renewable energy resources in Illinois, including
836	836	17 brownfield solar projects and community solar projects,
837	837	18 will help to diversify Illinois electricity supply, avoid
838	838	19 and reduce pollution, reduce peak demand, and enhance
839	839	20 public health and well-being of Illinois residents.
840	840	21 (7) Developing community solar projects in Illinois
841	841	22 will help to expand access to renewable energy resources
842	842	23 to more Illinois residents.
843	843	24 (8) Developing brownfield solar projects in Illinois
844	844	25 will help return blighted or contaminated land to
845	845	26 productive use while enhancing public health and the
846	846
847	847
848	848
849	849
850	850
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852	852
853	853
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855	855	SB3949 - 24 - LRB103 40603 LNS 73240 b
856	856	1 well-being of Illinois residents, including those in
857	857	2 environmental justice communities.
858	858	3 (9) Energy efficiency, demand-response measures, zero
859	859	4 emission energy, and renewable energy are resources
860	860	5 currently underused in Illinois. These resources should be
861	861	6 used, when cost effective, to reduce costs to consumers,
862	862	7 improve reliability, and improve environmental quality and
863	863	8 public health.
864	864	9 (10) The State should encourage the use of advanced
865	865	10 clean coal technologies that capture and sequester carbon
866	866	11 dioxide emissions to advance environmental protection
867	867	12 goals and to demonstrate the viability of coal and
868	868	13 coal-derived fuels in a carbon-constrained economy.
869	869	14 (10.5) The State should encourage the development of
870	870	15 interregional high voltage direct current (HVDC)
871	871	16 transmission lines that benefit Illinois. All ratepayers
872	872	17 in the State served by the regional transmission
873	873	18 organization where the HVDC converter station is
874	874	19 interconnected benefit from the long-term price stability
875	875	20 and market access provided by interregional HVDC
876	876	21 transmission facilities. The benefits to Illinois include:
877	877	22 reduction in wholesale power prices; access to lower-cost
878	878	23 markets; enabling the integration of additional renewable
879	879	24 generating units within the State through near
880	880	25 instantaneous dispatchability and the provision of
881	881	26 ancillary services; creating good-paying union jobs in
882	882
883	883
884	884
885	885
886	886
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888	888
889	889
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892	892	1 Illinois; and, enhancing grid reliability and climate
893	893	2 resilience via HVDC facilities that are installed
894	894	3 underground.
895	895	4 (10.6) The health, welfare, and safety of the people
896	896	5 of the State are advanced by developing new HVDC
897	897	6 transmission lines that are capable of transmitting power
898	898	7 to the service territory of a public utility as defined in
899	899	8 Section 3-105 of the Public Utilities Act predominantly
900	900	9 along transportation rights-of-way, with an HVDC converter
901	901	10 station that is located in the service territory of a
902	902	11 public utility as defined in Section 3-105 of the Public
903	903	12 Utilities Act serving more than 3,000,000 retail
904	904	13 customers, and with a project labor agreement as defined
905	905	14 in Section 1-10 of this Act.
906	906	15 (11) The General Assembly enacted Public Act 96-0795
907	907	16 to reform the State's purchasing processes, recognizing
908	908	17 that government procurement is susceptible to abuse if
909	909	18 structural and procedural safeguards are not in place to
910	910	19 ensure independence, insulation, oversight, and
911	911	20 transparency.
912	912	21 (12) The principles that underlie the procurement
913	913	22 reform legislation apply also in the context of power
914	914	23 purchasing.
915	915	24 (13) To ensure that the benefits of installing
916	916	25 renewable resources are available to all Illinois
917	917	26 residents and located across the State, subject to
918	918
919	919
920	920
921	921
922	922
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924	924
925	925
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927	927	SB3949 - 26 - LRB103 40603 LNS 73240 b
928	928	1 appropriation, it is necessary for the Agency to provide
929	929	2 public information and educational resources on how
930	930	3 residents can benefit from the expansion of renewable
931	931	4 energy in Illinois and participate in the Illinois Solar
932	932	5 for All Program established in Section 1-56, the
933	933	6 Adjustable Block program established in Section 1-75, the
934	934	7 job training programs established by paragraph (1) of
935	935	8 subsection (a) of Section 16-108.12 of the Public
936	936	9 Utilities Act, and the programs and resources established
937	937	10 by the Energy Transition Act.
938	938	11 The General Assembly therefore finds that it is necessary
939	939	12 to create the Illinois Power Agency and that the goals and
940	940	13 objectives of that Agency are to accomplish each of the
941	941	14 following:
942	942	15 (A) Develop electricity procurement plans to ensure
943	943	16 adequate, reliable, affordable, efficient, and
944	944	17 environmentally sustainable electric service at the lowest
945	945	18 total cost over time, taking into account any benefits of
946	946	19 price stability, for electric utilities that on December
947	947	20 31, 2005 provided electric service to at least 100,000
948	948	21 customers in Illinois and for small multi-jurisdictional
949	949	22 electric utilities that (i) on December 31, 2005 served
950	950	23 less than 100,000 customers in Illinois and (ii) request a
951	951	24 procurement plan for their Illinois jurisdictional load.
952	952	25 The procurement plan shall be updated on an annual basis
953	953	26 and shall include renewable energy resources and,
954	954
955	955
956	956
957	957
958	958
959	959	SB3949 - 26 - LRB103 40603 LNS 73240 b
960	960
961	961
962	962	SB3949- 27 -LRB103 40603 LNS 73240 b SB3949 - 27 - LRB103 40603 LNS 73240 b
963	963	SB3949 - 27 - LRB103 40603 LNS 73240 b
964	964	1 beginning with the delivery year commencing June 1, 2017,
965	965	2 zero emission credits from zero emission facilities
966	966	3 sufficient to achieve the standards specified in this Act.
967	967	4 (B) Conduct the competitive procurement processes
968	968	5 identified in this Act.
969	969	6 (C) Develop electric generation and co-generation
970	970	7 facilities that use indigenous coal or renewable
971	971	8 resources, or both, financed with bonds issued by the
972	972	9 Illinois Finance Authority.
973	973	10 (D) Supply electricity from the Agency's facilities at
974	974	11 cost to one or more of the following: municipal electric
975	975	12 systems, governmental aggregators, or rural electric
976	976	13 cooperatives in Illinois.
977	977	14 (E) Ensure that the process of power procurement is
978	978	15 conducted in an ethical and transparent fashion, immune
979	979	16 from improper influence.
980	980	17 (F) Continue to review its policies and practices to
981	981	18 determine how best to meet its mission of providing the
982	982	19 lowest cost power to the greatest number of people, at any
983	983	20 given point in time, in accordance with applicable law.
984	984	21 (G) Operate in a structurally insulated, independent,
985	985	22 and transparent fashion so that nothing impedes the
986	986	23 Agency's mission to secure power at the best prices the
987	987	24 market will bear, provided that the Agency meets all
988	988	25 applicable legal requirements.
989	989	26 (H) Implement renewable energy procurement and
990	990
991	991
992	992
993	993
994	994
995	995	SB3949 - 27 - LRB103 40603 LNS 73240 b
996	996
997	997
998	998	SB3949- 28 -LRB103 40603 LNS 73240 b SB3949 - 28 - LRB103 40603 LNS 73240 b
999	999	SB3949 - 28 - LRB103 40603 LNS 73240 b
1000	1000	1 training programs throughout the State to diversify
1001	1001	2 Illinois electricity supply, improve reliability, avoid
1002	1002	3 and reduce pollution, reduce peak demand, and enhance
1003	1003	4 public health and well-being of Illinois residents,
1004	1004	5 including low-income residents.
1005	1005	6 (Source: P.A. 102-662, eff. 9-15-21.)
1006	1006	7 (20 ILCS 3855/1-10)
1007	1007	8 Sec. 1-10. Definitions.
1008	1008	9 "Agency" means the Illinois Power Agency.
1009	1009	10 "Agency loan agreement" means any agreement pursuant to
1010	1010	11 which the Illinois Finance Authority agrees to loan the
1011	1011	12 proceeds of revenue bonds issued with respect to a project to
1012	1012	13 the Agency upon terms providing for loan repayment
1013	1013	14 installments at least sufficient to pay when due all principal
1014	1014	15 of, interest and premium, if any, on those revenue bonds, and
1015	1015	16 providing for maintenance, insurance, and other matters in
1016	1016	17 respect of the project.
1017	1017	18 "Authority" means the Illinois Finance Authority.
1018	1018	19 "Brownfield site photovoltaic project" means photovoltaics
1019	1019	20 that are either:
1020	1020	21 (1) interconnected to an electric utility as defined
1021	1021	22 in this Section, a municipal utility as defined in this
1022	1022	23 Section, a public utility as defined in Section 3-105 of
1023	1023	24 the Public Utilities Act, or an electric cooperative as
1024	1024	25 defined in Section 3-119 of the Public Utilities Act and
1025	1025
1026	1026
1027	1027
1028	1028
1029	1029
1030	1030	SB3949 - 28 - LRB103 40603 LNS 73240 b
1031	1031
1032	1032
1033	1033	SB3949- 29 -LRB103 40603 LNS 73240 b SB3949 - 29 - LRB103 40603 LNS 73240 b
1034	1034	SB3949 - 29 - LRB103 40603 LNS 73240 b
1035	1035	1 located at a site that is regulated by any of the following
1036	1036	2 entities under the following programs:
1037	1037	3 (A) the United States Environmental Protection
1038	1038	4 Agency under the federal Comprehensive Environmental
1039	1039	5 Response, Compensation, and Liability Act of 1980, as
1040	1040	6 amended;
1041	1041	7 (B) the United States Environmental Protection
1042	1042	8 Agency under the Corrective Action Program of the
1043	1043	9 federal Resource Conservation and Recovery Act, as
1044	1044	10 amended;
1045	1045	11 (C) the Illinois Environmental Protection Agency
1046	1046	12 under the Illinois Site Remediation Program; or
1047	1047	13 (D) the Illinois Environmental Protection Agency
1048	1048	14 under the Illinois Solid Waste Program; or
1049	1049	15 (2) located at the site of a coal mine that has
1050	1050	16 permanently ceased coal production, permanently halted any
1051	1051	17 re-mining operations, and is no longer accepting any coal
1052	1052	18 combustion residues; has both completed all clean-up and
1053	1053	19 remediation obligations under the federal Surface Mining
1054	1054	20 and Reclamation Act of 1977 and all applicable Illinois
1055	1055	21 rules and any other clean-up, remediation, or ongoing
1056	1056	22 monitoring to safeguard the health and well-being of the
1057	1057	23 people of the State of Illinois, as well as demonstrated
1058	1058	24 compliance with all applicable federal and State
1059	1059	25 environmental rules and regulations, including, but not
1060	1060	26 limited, to 35 Ill. Adm. Code Part 845 and any rules for
1061	1061
1062	1062
1063	1063
1064	1064
1065	1065
1066	1066	SB3949 - 29 - LRB103 40603 LNS 73240 b
1067	1067
1068	1068
1069	1069	SB3949- 30 -LRB103 40603 LNS 73240 b SB3949 - 30 - LRB103 40603 LNS 73240 b
1070	1070	SB3949 - 30 - LRB103 40603 LNS 73240 b
1071	1071	1 historic fill of coal combustion residuals, including any
1072	1072	2 rules finalized in Subdocket A of Illinois Pollution
1073	1073	3 Control Board docket R2020-019.
1074	1074	4 "Clean coal facility" means an electric generating
1075	1075	5 facility that uses primarily coal as a feedstock and that
1076	1076	6 captures and sequesters carbon dioxide emissions at the
1077	1077	7 following levels: at least 50% of the total carbon dioxide
1078	1078	8 emissions that the facility would otherwise emit if, at the
1079	1079	9 time construction commences, the facility is scheduled to
1080	1080	10 commence operation before 2016, at least 70% of the total
1081	1081	11 carbon dioxide emissions that the facility would otherwise
1082	1082	12 emit if, at the time construction commences, the facility is
1083	1083	13 scheduled to commence operation during 2016 or 2017, and at
1084	1084	14 least 90% of the total carbon dioxide emissions that the
1085	1085	15 facility would otherwise emit if, at the time construction
1086	1086	16 commences, the facility is scheduled to commence operation
1087	1087	17 after 2017. The power block of the clean coal facility shall
1088	1088	18 not exceed allowable emission rates for sulfur dioxide,
1089	1089	19 nitrogen oxides, carbon monoxide, particulates and mercury for
1090	1090	20 a natural gas-fired combined-cycle facility the same size as
1091	1091	21 and in the same location as the clean coal facility at the time
1092	1092	22 the clean coal facility obtains an approved air permit. All
1093	1093	23 coal used by a clean coal facility shall have high volatile
1094	1094	24 bituminous rank and greater than 1.7 pounds of sulfur per
1095	1095	25 million Btu content, unless the clean coal facility does not
1096	1096	26 use gasification technology and was operating as a
1097	1097
1098	1098
1099	1099
1100	1100
1101	1101
1102	1102	SB3949 - 30 - LRB103 40603 LNS 73240 b
1103	1103
1104	1104
1105	1105	SB3949- 31 -LRB103 40603 LNS 73240 b SB3949 - 31 - LRB103 40603 LNS 73240 b
1106	1106	SB3949 - 31 - LRB103 40603 LNS 73240 b
1107	1107	1 conventional coal-fired electric generating facility on June
1108	1108	2 1, 2009 (the effective date of Public Act 95-1027).
1109	1109	3 "Clean coal SNG brownfield facility" means a facility that
1110	1110	4 (1) has commenced construction by July 1, 2015 on an urban
1111	1111	5 brownfield site in a municipality with at least 1,000,000
1112	1112	6 residents; (2) uses a gasification process to produce
1113	1113	7 substitute natural gas; (3) uses coal as at least 50% of the
1114	1114	8 total feedstock over the term of any sourcing agreement with a
1115	1115	9 utility and the remainder of the feedstock may be either
1116	1116	10 petroleum coke or coal, with all such coal having a high
1117	1117	11 bituminous rank and greater than 1.7 pounds of sulfur per
1118	1118	12 million Btu content unless the facility reasonably determines
1119	1119	13 that it is necessary to use additional petroleum coke to
1120	1120	14 deliver additional consumer savings, in which case the
1121	1121	15 facility shall use coal for at least 35% of the total feedstock
1122	1122	16 over the term of any sourcing agreement; and (4) captures and
1123	1123	17 sequesters at least 85% of the total carbon dioxide emissions
1124	1124	18 that the facility would otherwise emit.
1125	1125	19 "Clean coal SNG facility" means a facility that uses a
1126	1126	20 gasification process to produce substitute natural gas, that
1127	1127	21 sequesters at least 90% of the total carbon dioxide emissions
1128	1128	22 that the facility would otherwise emit, that uses at least 90%
1129	1129	23 coal as a feedstock, with all such coal having a high
1130	1130	24 bituminous rank and greater than 1.7 pounds of sulfur per
1131	1131	25 million Btu content, and that has a valid and effective permit
1132	1132	26 to construct emission sources and air pollution control
1133	1133
1134	1134
1135	1135
1136	1136
1137	1137
1138	1138	SB3949 - 31 - LRB103 40603 LNS 73240 b
1139	1139
1140	1140
1141	1141	SB3949- 32 -LRB103 40603 LNS 73240 b SB3949 - 32 - LRB103 40603 LNS 73240 b
1142	1142	SB3949 - 32 - LRB103 40603 LNS 73240 b
1143	1143	1 equipment and approval with respect to the federal regulations
1144	1144	2 for Prevention of Significant Deterioration of Air Quality
1145	1145	3 (PSD) for the plant pursuant to the federal Clean Air Act;
1146	1146	4 provided, however, a clean coal SNG brownfield facility shall
1147	1147	5 not be a clean coal SNG facility.
1148	1148	6 "Clean energy" means energy generation that is 90% or
1149	1149	7 greater free of carbon dioxide emissions.
1150	1150	8 "Commission" means the Illinois Commerce Commission.
1151	1151	9 "Community renewable generation project" means an electric
1152	1152	10 generating facility that:
1153	1153	11 (1) is powered by wind, solar thermal energy,
1154	1154	12 photovoltaic cells or panels, biodiesel, crops and
1155	1155	13 untreated and unadulterated organic waste biomass, and
1156	1156	14 hydropower that does not involve new construction of dams;
1157	1157	15 (2) is interconnected at the distribution system level
1158	1158	16 of an electric utility as defined in this Section, a
1159	1159	17 municipal utility as defined in this Section that owns or
1160	1160	18 operates electric distribution facilities, a public
1161	1161	19 utility as defined in Section 3-105 of the Public
1162	1162	20 Utilities Act, or an electric cooperative, as defined in
1163	1163	21 Section 3-119 of the Public Utilities Act;
1164	1164	22 (3) credits the value of electricity generated by the
1165	1165	23 facility to the subscribers of the facility; and
1166	1166	24 (4) is limited in nameplate capacity to less than or
1167	1167	25 equal to 5,000 kilowatts.
1168	1168	26 "Costs incurred in connection with the development and
1169	1169
1170	1170
1171	1171
1172	1172
1173	1173
1174	1174	SB3949 - 32 - LRB103 40603 LNS 73240 b
1175	1175
1176	1176
1177	1177	SB3949- 33 -LRB103 40603 LNS 73240 b SB3949 - 33 - LRB103 40603 LNS 73240 b
1178	1178	SB3949 - 33 - LRB103 40603 LNS 73240 b
1179	1179	1 construction of a facility" means:
1180	1180	2 (1) the cost of acquisition of all real property,
1181	1181	3 fixtures, and improvements in connection therewith and
1182	1182	4 equipment, personal property, and other property, rights,
1183	1183	5 and easements acquired that are deemed necessary for the
1184	1184	6 operation and maintenance of the facility;
1185	1185	7 (2) financing costs with respect to bonds, notes, and
1186	1186	8 other evidences of indebtedness of the Agency;
1187	1187	9 (3) all origination, commitment, utilization,
1188	1188	10 facility, placement, underwriting, syndication, credit
1189	1189	11 enhancement, and rating agency fees;
1190	1190	12 (4) engineering, design, procurement, consulting,
1191	1191	13 legal, accounting, title insurance, survey, appraisal,
1192	1192	14 escrow, trustee, collateral agency, interest rate hedging,
1193	1193	15 interest rate swap, capitalized interest, contingency, as
1194	1194	16 required by lenders, and other financing costs, and other
1195	1195	17 expenses for professional services; and
1196	1196	18 (5) the costs of plans, specifications, site study and
1197	1197	19 investigation, installation, surveys, other Agency costs
1198	1198	20 and estimates of costs, and other expenses necessary or
1199	1199	21 incidental to determining the feasibility of any project,
1200	1200	22 together with such other expenses as may be necessary or
1201	1201	23 incidental to the financing, insuring, acquisition, and
1202	1202	24 construction of a specific project and starting up,
1203	1203	25 commissioning, and placing that project in operation.
1204	1204	26 "Delivery services" has the same definition as found in
1205	1205
1206	1206
1207	1207
1208	1208
1209	1209
1210	1210	SB3949 - 33 - LRB103 40603 LNS 73240 b
1211	1211
1212	1212
1213	1213	SB3949- 34 -LRB103 40603 LNS 73240 b SB3949 - 34 - LRB103 40603 LNS 73240 b
1214	1214	SB3949 - 34 - LRB103 40603 LNS 73240 b
1215	1215	1 Section 16-102 of the Public Utilities Act.
1216	1216	2 "Delivery year" means the consecutive 12-month period
1217	1217	3 beginning June 1 of a given year and ending May 31 of the
1218	1218	4 following year.
1219	1219	5 "Department" means the Department of Commerce and Economic
1220	1220	6 Opportunity.
1221	1221	7 "Director" means the Director of the Illinois Power
1222	1222	8 Agency.
1223	1223	9 "Demand-response" means measures that decrease peak
1224	1224	10 electricity demand or shift demand from peak to off-peak
1225	1225	11 periods.
1226	1226	12 "Distributed renewable energy generation device" means a
1227	1227	13 device that is:
1228	1228	14 (1) powered by wind, solar thermal energy,
1229	1229	15 photovoltaic cells or panels, biodiesel, crops and
1230	1230	16 untreated and unadulterated organic waste biomass, tree
1231	1231	17 waste, and hydropower that does not involve new
1232	1232	18 construction of dams, waste heat to power systems, or
1233	1233	19 qualified combined heat and power systems;
1234	1234	20 (2) interconnected at the distribution system level of
1235	1235	21 either an electric utility as defined in this Section, a
1236	1236	22 municipal utility as defined in this Section that owns or
1237	1237	23 operates electric distribution facilities, or a rural
1238	1238	24 electric cooperative as defined in Section 3-119 of the
1239	1239	25 Public Utilities Act;
1240	1240	26 (3) located on the customer side of the customer's
1241	1241
1242	1242
1243	1243
1244	1244
1245	1245
1246	1246	SB3949 - 34 - LRB103 40603 LNS 73240 b
1247	1247
1248	1248
1249	1249	SB3949- 35 -LRB103 40603 LNS 73240 b SB3949 - 35 - LRB103 40603 LNS 73240 b
1250	1250	SB3949 - 35 - LRB103 40603 LNS 73240 b
1251	1251	1 electric meter and is primarily used to offset that
1252	1252	2 customer's electricity load; and
1253	1253	3 (4) (blank).
1254	1254	4 "Energy efficiency" means measures that reduce the amount
1255	1255	5 of electricity or natural gas consumed in order to achieve a
1256	1256	6 given end use. "Energy efficiency" includes voltage
1257	1257	7 optimization measures that optimize the voltage at points on
1258	1258	8 the electric distribution voltage system and thereby reduce
1259	1259	9 electricity consumption by electric customers' end use
1260	1260	10 devices. "Energy efficiency" also includes measures that
1261	1261	11 reduce the total Btus of electricity, natural gas, and other
1262	1262	12 fuels needed to meet the end use or uses.
1263	1263	13 "Electric utility" has the same definition as found in
1264	1264	14 Section 16-102 of the Public Utilities Act.
1265	1265	15 "Equity investment eligible community" or "eligible
1266	1266	16 community" are synonymous and mean the geographic areas
1267	1267	17 throughout Illinois which would most benefit from equitable
1268	1268	18 investments by the State designed to combat discrimination.
1269	1269	19 Specifically, the eligible communities shall be defined as the
1270	1270	20 following areas:
1271	1271	21 (1) R3 Areas as established pursuant to Section 10-40
1272	1272	22 of the Cannabis Regulation and Tax Act, where residents
1273	1273	23 have historically been excluded from economic
1274	1274	24 opportunities, including opportunities in the energy
1275	1275	25 sector; and
1276	1276	26 (2) environmental justice communities, as defined by
1277	1277
1278	1278
1279	1279
1280	1280
1281	1281
1282	1282	SB3949 - 35 - LRB103 40603 LNS 73240 b
1283	1283
1284	1284
1285	1285	SB3949- 36 -LRB103 40603 LNS 73240 b SB3949 - 36 - LRB103 40603 LNS 73240 b
1286	1286	SB3949 - 36 - LRB103 40603 LNS 73240 b
1287	1287	1 the Illinois Power Agency pursuant to the Illinois Power
1288	1288	2 Agency Act, where residents have historically been subject
1289	1289	3 to disproportionate burdens of pollution, including
1290	1290	4 pollution from the energy sector.
1291	1291	5 "Equity eligible persons" or "eligible persons" means
1292	1292	6 persons who would most benefit from equitable investments by
1293	1293	7 the State designed to combat discrimination, specifically:
1294	1294	8 (1) persons who graduate from or are current or former
1295	1295	9 participants in the Clean Jobs Workforce Network Program,
1296	1296	10 the Clean Energy Contractor Incubator Program, the
1297	1297	11 Illinois Climate Works Preapprenticeship Program,
1298	1298	12 Returning Residents Clean Jobs Training Program, or the
1299	1299	13 Clean Energy Primes Contractor Accelerator Program, and
1300	1300	14 the solar training pipeline and multi-cultural jobs
1301	1301	15 program created in paragraphs (a)(1) and (a)(3) of Section
1302	1302	16 16-208.12 of the Public Utilities Act;
1303	1303	17 (2) persons who are graduates of or currently enrolled
1304	1304	18 in the foster care system;
1305	1305	19 (3) persons who were formerly incarcerated;
1306	1306	20 (4) persons whose primary residence is in an equity
1307	1307	21 investment eligible community.
1308	1308	22 "Equity eligible contractor" means a business that is
1309	1309	23 majority-owned by eligible persons, or a nonprofit or
1310	1310	24 cooperative that is majority-governed by eligible persons, or
1311	1311	25 is a natural person that is an eligible person offering
1312	1312	26 personal services as an independent contractor.
1313	1313
1314	1314
1315	1315
1316	1316
1317	1317
1318	1318	SB3949 - 36 - LRB103 40603 LNS 73240 b
1319	1319
1320	1320
1321	1321	SB3949- 37 -LRB103 40603 LNS 73240 b SB3949 - 37 - LRB103 40603 LNS 73240 b
1322	1322	SB3949 - 37 - LRB103 40603 LNS 73240 b
1323	1323	1 "Facility" means an electric generating unit or a
1324	1324	2 co-generating unit that produces electricity along with
1325	1325	3 related equipment necessary to connect the facility to an
1326	1326	4 electric transmission or distribution system.
1327	1327	5 "General contractor" means the entity or organization with
1328	1328	6 main responsibility for the building of a construction project
1329	1329	7 and who is the party signing the prime construction contract
1330	1330	8 for the project.
1331	1331	9 "Governmental aggregator" means one or more units of local
1332	1332	10 government that individually or collectively procure
1333	1333	11 electricity to serve residential retail electrical loads
1334	1334	12 located within its or their jurisdiction.
1335	1335	13 "High voltage direct current converter station" means the
1336	1336	14 collection of equipment that converts direct current energy
1337	1337	15 from a high voltage direct current transmission line into
1338	1338	16 alternating current using Voltage Source Conversion technology
1339	1339	17 and that is interconnected with transmission or distribution
1340	1340	18 assets located in Illinois.
1341	1341	19 "High voltage direct current renewable energy credit"
1342	1342	20 means a renewable energy credit associated with a renewable
1343	1343	21 energy resource where the renewable energy resource has
1344	1344	22 entered into a contract to transmit the energy associated with
1345	1345	23 such renewable energy credit over high voltage direct current
1346	1346	24 transmission facilities.
1347	1347	25 "High voltage direct current transmission facilities"
1348	1348	26 means the collection of installed equipment that converts
1349	1349
1350	1350
1351	1351
1352	1352
1353	1353
1354	1354	SB3949 - 37 - LRB103 40603 LNS 73240 b
1355	1355
1356	1356
1357	1357	SB3949- 38 -LRB103 40603 LNS 73240 b SB3949 - 38 - LRB103 40603 LNS 73240 b
1358	1358	SB3949 - 38 - LRB103 40603 LNS 73240 b
1359	1359	1 alternating current energy in one balancing authority location
1360	1360	2 to direct current and transmits that direct current energy to
1361	1361	3 a high voltage direct current converter station in another
1362	1362	4 balancing authority using Voltage Source Conversion
1363	1363	5 technology. "High voltage direct current transmission
1364	1364	6 facilities" includes the high voltage direct current converter
1365	1365	7 station itself and associated high voltage direct current
1366	1366	8 transmission lines. Notwithstanding the preceding, after
1367	1367	9 September 15, 2021 (the effective date of Public Act 102-662),
1368	1368	10 an otherwise qualifying collection of equipment does not
1369	1369	11 qualify as high voltage direct current transmission facilities
1370	1370	12 unless either: (1) its developer entered into a project labor
1371	1371	13 agreement, is capable of transmitting electricity at 525
1372	1372	14 kilovolts 525kv with an Illinois converter station located and
1373	1373	15 interconnected in the region of the PJM Interconnection, LLC,
1374	1374	16 and the system does not operate as a public utility, as that
1375	1375	17 term is defined in Section 3-105 of the Public Utilities Act
1376	1376	18 serving more than 100,000 customers as of January 1, 2021; or
1377	1377	19 (2) its developer entered into a project labor agreement, the
1378	1378	20 project is capable of transmitting electricity at 600
1379	1379	21 kilovolts or above and has a converter station that is located
1380	1380	22 in Illinois or in a state adjacent to Illinois and is
1381	1381	23 interconnected to PJM Interconnection, LLC, the Midcontinent
1382	1382	24 Independent System Operator, Inc., or their successors.
1383	1383	25 "Hydropower" means any method of electricity generation or
1384	1384	26 storage that results from the flow of water, including
1385	1385
1386	1386
1387	1387
1388	1388
1389	1389
1390	1390	SB3949 - 38 - LRB103 40603 LNS 73240 b
1391	1391
1392	1392
1393	1393	SB3949- 39 -LRB103 40603 LNS 73240 b SB3949 - 39 - LRB103 40603 LNS 73240 b
1394	1394	SB3949 - 39 - LRB103 40603 LNS 73240 b
1395	1395	1 impoundment facilities, diversion facilities, and pumped
1396	1396	2 storage facilities.
1397	1397	3 "Index price" means the real-time energy settlement price
1398	1398	4 at the applicable Illinois trading hub, such as PJM-NIHUB or
1399	1399	5 MISO-IL, for a given settlement period.
1400	1400	6 "Indexed renewable energy credit" means a tradable credit
1401	1401	7 that represents the environmental attributes of one megawatt
1402	1402	8 hour of energy produced from a renewable energy resource, the
1403	1403	9 price of which shall be calculated by subtracting the strike
1404	1404	10 price offered by a new utility-scale wind project or a new
1405	1405	11 utility-scale photovoltaic project from the index price in a
1406	1406	12 given settlement period.
1407	1407	13 "Indexed renewable energy credit counterparty" has the
1408	1408	14 same meaning as "public utility" as defined in Section 3-105
1409	1409	15 of the Public Utilities Act.
1410	1410	16 "Local government" means a unit of local government as
1411	1411	17 defined in Section 1 of Article VII of the Illinois
1412	1412	18 Constitution.
1413	1413	19 "Modernized" or "retooled" means the construction, repair,
1414	1414	20 maintenance, or significant expansion of turbines and existing
1415	1415	21 hydropower dams.
1416	1416	22 "Municipality" means a city, village, or incorporated
1417	1417	23 town.
1418	1418	24 "Municipal utility" means a public utility owned and
1419	1419	25 operated by any subdivision or municipal corporation of this
1420	1420	26 State.
1421	1421
1422	1422
1423	1423
1424	1424
1425	1425
1426	1426	SB3949 - 39 - LRB103 40603 LNS 73240 b
1427	1427
1428	1428
1429	1429	SB3949- 40 -LRB103 40603 LNS 73240 b SB3949 - 40 - LRB103 40603 LNS 73240 b
1430	1430	SB3949 - 40 - LRB103 40603 LNS 73240 b
1431	1431	1 "Nameplate capacity" means the aggregate inverter
1432	1432	2 nameplate capacity in kilowatts AC.
1433	1433	3 "Person" means any natural person, firm, partnership,
1434	1434	4 corporation, either domestic or foreign, company, association,
1435	1435	5 limited liability company, joint stock company, or association
1436	1436	6 and includes any trustee, receiver, assignee, or personal
1437	1437	7 representative thereof.
1438	1438	8 "Project" means the planning, bidding, and construction of
1439	1439	9 a facility.
1440	1440	10 "Project labor agreement" means a pre-hire collective
1441	1441	11 bargaining agreement that covers all terms and conditions of
1442	1442	12 employment on a specific construction project and must include
1443	1443	13 the following:
1444	1444	14 (1) provisions establishing the minimum hourly wage
1445	1445	15 for each class of labor organization employee;
1446	1446	16 (2) provisions establishing the benefits and other
1447	1447	17 compensation for each class of labor organization
1448	1448	18 employee;
1449	1449	19 (3) provisions establishing that no strike or disputes
1450	1450	20 will be engaged in by the labor organization employees;
1451	1451	21 (4) provisions establishing that no lockout or
1452	1452	22 disputes will be engaged in by the general contractor
1453	1453	23 building the project; and
1454	1454	24 (5) provisions for minorities and women, as defined
1455	1455	25 under the Business Enterprise for Minorities, Women, and
1456	1456	26 Persons with Disabilities Act, setting forth goals for
1457	1457
1458	1458
1459	1459
1460	1460
1461	1461
1462	1462	SB3949 - 40 - LRB103 40603 LNS 73240 b
1463	1463
1464	1464
1465	1465	SB3949- 41 -LRB103 40603 LNS 73240 b SB3949 - 41 - LRB103 40603 LNS 73240 b
1466	1466	SB3949 - 41 - LRB103 40603 LNS 73240 b
1467	1467	1 apprenticeship hours to be performed by minorities and
1468	1468	2 women and setting forth goals for total hours to be
1469	1469	3 performed by underrepresented minorities and women.
1470	1470	4 A labor organization and the general contractor building
1471	1471	5 the project shall have the authority to include other terms
1472	1472	6 and conditions as they deem necessary.
1473	1473	7 "Public utility" has the same definition as found in
1474	1474	8 Section 3-105 of the Public Utilities Act.
1475	1475	9 "Qualified combined heat and power systems" means systems
1476	1476	10 that, either simultaneously or sequentially, produce
1477	1477	11 electricity and useful thermal energy from a single fuel
1478	1478	12 source. Such systems are eligible for "renewable energy
1479	1479	13 credits" in an amount equal to its total energy output where a
1480	1480	14 renewable fuel is consumed or in an amount equal to the net
1481	1481	15 reduction in nonrenewable fuel consumed on a total energy
1482	1482	16 output basis.
1483	1483	17 "Real property" means any interest in land together with
1484	1484	18 all structures, fixtures, and improvements thereon, including
1485	1485	19 lands under water and riparian rights, any easements,
1486	1486	20 covenants, licenses, leases, rights-of-way, uses, and other
1487	1487	21 interests, together with any liens, judgments, mortgages, or
1488	1488	22 other claims or security interests related to real property.
1489	1489	23 "Renewable energy credit" means a tradable credit that
1490	1490	24 represents the environmental attributes of one megawatt hour
1491	1491	25 of energy produced from a renewable energy resource.
1492	1492	26 "Renewable energy resources" includes energy and its
1493	1493
1494	1494
1495	1495
1496	1496
1497	1497
1498	1498	SB3949 - 41 - LRB103 40603 LNS 73240 b
1499	1499
1500	1500
1501	1501	SB3949- 42 -LRB103 40603 LNS 73240 b SB3949 - 42 - LRB103 40603 LNS 73240 b
1502	1502	SB3949 - 42 - LRB103 40603 LNS 73240 b
1503	1503	1 associated renewable energy credit or renewable energy credits
1504	1504	2 from wind, solar thermal energy, photovoltaic cells and
1505	1505	3 panels, biodiesel, anaerobic digestion, crops and untreated
1506	1506	4 and unadulterated organic waste biomass, and hydropower that
1507	1507	5 does not involve new construction of dams, waste heat to power
1508	1508	6 systems, or qualified combined heat and power systems. For
1509	1509	7 purposes of this Act, landfill gas produced in the State is
1510	1510	8 considered a renewable energy resource. "Renewable energy
1511	1511	9 resources" does not include the incineration or burning of
1512	1512	10 tires, garbage, general household, institutional, and
1513	1513	11 commercial waste, industrial lunchroom or office waste,
1514	1514	12 landscape waste, railroad crossties, utility poles, or
1515	1515	13 construction or demolition debris, other than untreated and
1516	1516	14 unadulterated waste wood. "Renewable energy resources" also
1517	1517	15 includes high voltage direct current renewable energy credits
1518	1518	16 and the associated energy converted to alternating current by
1519	1519	17 a high voltage direct current converter station to the extent
1520	1520	18 that: (1) the generator of such renewable energy resource
1521	1521	19 contracted with a third party to transmit the energy over the
1522	1522	20 high voltage direct current transmission facilities, and (2)
1523	1523	21 the third-party contracting for delivery of renewable energy
1524	1524	22 resources over the high voltage direct current transmission
1525	1525	23 facilities have ownership rights over the unretired associated
1526	1526	24 high voltage direct current renewable energy credit.
1527	1527	25 "Retail customer" has the same definition as found in
1528	1528	26 Section 16-102 of the Public Utilities Act.
1529	1529
1530	1530
1531	1531
1532	1532
1533	1533
1534	1534	SB3949 - 42 - LRB103 40603 LNS 73240 b
1535	1535
1536	1536
1537	1537	SB3949- 43 -LRB103 40603 LNS 73240 b SB3949 - 43 - LRB103 40603 LNS 73240 b
1538	1538	SB3949 - 43 - LRB103 40603 LNS 73240 b
1539	1539	1 "Revenue bond" means any bond, note, or other evidence of
1540	1540	2 indebtedness issued by the Authority, the principal and
1541	1541	3 interest of which is payable solely from revenues or income
1542	1542	4 derived from any project or activity of the Agency.
1543	1543	5 "Sequester" means permanent storage of carbon dioxide by
1544	1544	6 injecting it into a saline aquifer, a depleted gas reservoir,
1545	1545	7 or an oil reservoir, directly or through an enhanced oil
1546	1546	8 recovery process that may involve intermediate storage,
1547	1547	9 regardless of whether these activities are conducted by a
1548	1548	10 clean coal facility, a clean coal SNG facility, a clean coal
1549	1549	11 SNG brownfield facility, or a party with which a clean coal
1550	1550	12 facility, clean coal SNG facility, or clean coal SNG
1551	1551	13 brownfield facility has contracted for such purposes.
1552	1552	14 "Service area" has the same definition as found in Section
1553	1553	15 16-102 of the Public Utilities Act.
1554	1554	16 "Settlement period" means the period of time utilized by
1555	1555	17 MISO and PJM and their successor organizations as the basis
1556	1556	18 for settlement calculations in the real-time energy market.
1557	1557	19 "Sourcing agreement" means (i) in the case of an electric
1558	1558	20 utility, an agreement between the owner of a clean coal
1559	1559	21 facility and such electric utility, which agreement shall have
1560	1560	22 terms and conditions meeting the requirements of paragraph (3)
1561	1561	23 of subsection (d) of Section 1-75, (ii) in the case of an
1562	1562	24 alternative retail electric supplier, an agreement between the
1563	1563	25 owner of a clean coal facility and such alternative retail
1564	1564	26 electric supplier, which agreement shall have terms and
1565	1565
1566	1566
1567	1567
1568	1568
1569	1569
1570	1570	SB3949 - 43 - LRB103 40603 LNS 73240 b
1571	1571
1572	1572
1573	1573	SB3949- 44 -LRB103 40603 LNS 73240 b SB3949 - 44 - LRB103 40603 LNS 73240 b
1574	1574	SB3949 - 44 - LRB103 40603 LNS 73240 b
1575	1575	1 conditions meeting the requirements of Section 16-115(d)(5) of
1576	1576	2 the Public Utilities Act, and (iii) in case of a gas utility,
1577	1577	3 an agreement between the owner of a clean coal SNG brownfield
1578	1578	4 facility and the gas utility, which agreement shall have the
1579	1579	5 terms and conditions meeting the requirements of subsection
1580	1580	6 (h-1) of Section 9-220 of the Public Utilities Act.
1581	1581	7 "Strike price" means a contract price for energy and
1582	1582	8 renewable energy credits from a new utility-scale wind project
1583	1583	9 or a new utility-scale photovoltaic project or a contract
1584	1584	10 price for high voltage direct current renewable energy credits
1585	1585	11 as defined in item (iii-5) of subparagraph (G) of paragraph
1586	1586	12 (1) of subsection (c) of Section 1-75 of this Act.
1587	1587	13 "Subscriber" means a person who (i) takes delivery service
1588	1588	14 from an electric utility, and (ii) has a subscription of no
1589	1589	15 less than 200 watts to a community renewable generation
1590	1590	16 project that is located in the electric utility's service
1591	1591	17 area. No subscriber's subscriptions may total more than 40% of
1592	1592	18 the nameplate capacity of an individual community renewable
1593	1593	19 generation project. Entities that are affiliated by virtue of
1594	1594	20 a common parent shall not represent multiple subscriptions
1595	1595	21 that total more than 40% of the nameplate capacity of an
1596	1596	22 individual community renewable generation project.
1597	1597	23 "Subscription" means an interest in a community renewable
1598	1598	24 generation project expressed in kilowatts, which is sized
1599	1599	25 primarily to offset part or all of the subscriber's
1600	1600	26 electricity usage.
1601	1601
1602	1602
1603	1603
1604	1604
1605	1605
1606	1606	SB3949 - 44 - LRB103 40603 LNS 73240 b
1607	1607
1608	1608
1609	1609	SB3949- 45 -LRB103 40603 LNS 73240 b SB3949 - 45 - LRB103 40603 LNS 73240 b
1610	1610	SB3949 - 45 - LRB103 40603 LNS 73240 b
1611	1611	1 "Substitute natural gas" or "SNG" means a gas manufactured
1612	1612	2 by gasification of hydrocarbon feedstock, which is
1613	1613	3 substantially interchangeable in use and distribution with
1614	1614	4 conventional natural gas.
1615	1615	5 "Total resource cost test" or "TRC test" means a standard
1616	1616	6 that is met if, for an investment in energy efficiency or
1617	1617	7 demand-response measures, the benefit-cost ratio is greater
1618	1618	8 than one. The benefit-cost ratio is the ratio of the net
1619	1619	9 present value of the total benefits of the program to the net
1620	1620	10 present value of the total costs as calculated over the
1621	1621	11 lifetime of the measures. A total resource cost test compares
1622	1622	12 the sum of avoided electric utility costs, representing the
1623	1623	13 benefits that accrue to the system and the participant in the
1624	1624	14 delivery of those efficiency measures and including avoided
1625	1625	15 costs associated with reduced use of natural gas or other
1626	1626	16 fuels, avoided costs associated with reduced water
1627	1627	17 consumption, and avoided costs associated with reduced
1628	1628	18 operation and maintenance costs, as well as other quantifiable
1629	1629	19 societal benefits, to the sum of all incremental costs of
1630	1630	20 end-use measures that are implemented due to the program
1631	1631	21 (including both utility and participant contributions), plus
1632	1632	22 costs to administer, deliver, and evaluate each demand-side
1633	1633	23 program, to quantify the net savings obtained by substituting
1634	1634	24 the demand-side program for supply resources. In calculating
1635	1635	25 avoided costs of power and energy that an electric utility
1636	1636	26 would otherwise have had to acquire, reasonable estimates
1637	1637
1638	1638
1639	1639
1640	1640
1641	1641
1642	1642	SB3949 - 45 - LRB103 40603 LNS 73240 b
1643	1643
1644	1644
1645	1645	SB3949- 46 -LRB103 40603 LNS 73240 b SB3949 - 46 - LRB103 40603 LNS 73240 b
1646	1646	SB3949 - 46 - LRB103 40603 LNS 73240 b
1647	1647	1 shall be included of financial costs likely to be imposed by
1648	1648	2 future regulations and legislation on emissions of greenhouse
1649	1649	3 gases. In discounting future societal costs and benefits for
1650	1650	4 the purpose of calculating net present values, a societal
1651	1651	5 discount rate based on actual, long-term Treasury bond yields
1652	1652	6 should be used. Notwithstanding anything to the contrary, the
1653	1653	7 TRC test shall not include or take into account a calculation
1654	1654	8 of market price suppression effects or demand reduction
1655	1655	9 induced price effects.
1656	1656	10 "Utility-scale solar project" means an electric generating
1657	1657	11 facility that:
1658	1658	12 (1) generates electricity using photovoltaic cells;
1659	1659	13 and
1660	1660	14 (2) has a nameplate capacity that is greater than
1661	1661	15 5,000 kilowatts.
1662	1662	16 "Utility-scale wind project" means an electric generating
1663	1663	17 facility that:
1664	1664	18 (1) generates electricity using wind; and
1665	1665	19 (2) has a nameplate capacity that is greater than
1666	1666	20 5,000 kilowatts.
1667	1667	21 "Waste Heat to Power Systems" means systems that capture
1668	1668	22 and generate electricity from energy that would otherwise be
1669	1669	23 lost to the atmosphere without the use of additional fuel.
1670	1670	24 "Zero emission credit" means a tradable credit that
1671	1671	25 represents the environmental attributes of one megawatt hour
1672	1672	26 of energy produced from a zero emission facility.
1673	1673
1674	1674
1675	1675
1676	1676
1677	1677
1678	1678	SB3949 - 46 - LRB103 40603 LNS 73240 b
1679	1679
1680	1680
1681	1681	SB3949- 47 -LRB103 40603 LNS 73240 b SB3949 - 47 - LRB103 40603 LNS 73240 b
1682	1682	SB3949 - 47 - LRB103 40603 LNS 73240 b
1683	1683	1 "Zero emission facility" means a facility that: (1) is
1684	1684	2 fueled by nuclear power; and (2) is interconnected with PJM
1685	1685	3 Interconnection, LLC or the Midcontinent Independent System
1686	1686	4 Operator, Inc., or their successors.
1687	1687	5 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
1688	1688	6 103-380, eff. 1-1-24.)
1689	1689	7 (20 ILCS 3855/1-75)
1690	1690	8 Sec. 1-75. Planning and Procurement Bureau. The Planning
1691	1691	9 and Procurement Bureau has the following duties and
1692	1692	10 responsibilities:
1693	1693	11 (a) The Planning and Procurement Bureau shall each year,
1694	1694	12 beginning in 2008, develop procurement plans and conduct
1695	1695	13 competitive procurement processes in accordance with the
1696	1696	14 requirements of Section 16-111.5 of the Public Utilities Act
1697	1697	15 for the eligible retail customers of electric utilities that
1698	1698	16 on December 31, 2005 provided electric service to at least
1699	1699	17 100,000 customers in Illinois. Beginning with the delivery
1700	1700	18 year commencing on June 1, 2017, the Planning and Procurement
1701	1701	19 Bureau shall develop plans and processes for the procurement
1702	1702	20 of zero emission credits from zero emission facilities in
1703	1703	21 accordance with the requirements of subsection (d-5) of this
1704	1704	22 Section. Beginning on the effective date of this amendatory
1705	1705	23 Act of the 102nd General Assembly, the Planning and
1706	1706	24 Procurement Bureau shall develop plans and processes for the
1707	1707	25 procurement of carbon mitigation credits from carbon-free
1708	1708
1709	1709
1710	1710
1711	1711
1712	1712
1713	1713	SB3949 - 47 - LRB103 40603 LNS 73240 b
1714	1714
1715	1715
1716	1716	SB3949- 48 -LRB103 40603 LNS 73240 b SB3949 - 48 - LRB103 40603 LNS 73240 b
1717	1717	SB3949 - 48 - LRB103 40603 LNS 73240 b
1718	1718	1 energy resources in accordance with the requirements of
1719	1719	2 subsection (d-10) of this Section. The Planning and
1720	1720	3 Procurement Bureau shall also develop procurement plans and
1721	1721	4 conduct competitive procurement processes in accordance with
1722	1722	5 the requirements of Section 16-111.5 of the Public Utilities
1723	1723	6 Act for the eligible retail customers of small
1724	1724	7 multi-jurisdictional electric utilities that (i) on December
1725	1725	8 31, 2005 served less than 100,000 customers in Illinois and
1726	1726	9 (ii) request a procurement plan for their Illinois
1727	1727	10 jurisdictional load. This Section shall not apply to a small
1728	1728	11 multi-jurisdictional utility until such time as a small
1729	1729	12 multi-jurisdictional utility requests the Agency to prepare a
1730	1730	13 procurement plan for their Illinois jurisdictional load. For
1731	1731	14 the purposes of this Section, the term "eligible retail
1732	1732	15 customers" has the same definition as found in Section
1733	1733	16 16-111.5(a) of the Public Utilities Act.
1734	1734	17 Beginning with the plan or plans to be implemented in the
1735	1735	18 2017 delivery year, the Agency shall no longer include the
1736	1736	19 procurement of renewable energy resources in the annual
1737	1737	20 procurement plans required by this subsection (a), except as
1738	1738	21 provided in subsection (q) of Section 16-111.5 of the Public
1739	1739	22 Utilities Act, and shall instead develop a long-term renewable
1740	1740	23 resources procurement plan in accordance with subsection (c)
1741	1741	24 of this Section and Section 16-111.5 of the Public Utilities
1742	1742	25 Act.
1743	1743	26 In accordance with subsection (c-5) of this Section, the
1744	1744
1745	1745
1746	1746
1747	1747
1748	1748
1749	1749	SB3949 - 48 - LRB103 40603 LNS 73240 b
1750	1750
1751	1751
1752	1752	SB3949- 49 -LRB103 40603 LNS 73240 b SB3949 - 49 - LRB103 40603 LNS 73240 b
1753	1753	SB3949 - 49 - LRB103 40603 LNS 73240 b
1754	1754	1 Planning and Procurement Bureau shall oversee the procurement
1755	1755	2 by electric utilities that served more than 300,000 retail
1756	1756	3 customers in this State as of January 1, 2019 of renewable
1757	1757	4 energy credits from new utility-scale solar projects to be
1758	1758	5 installed, along with energy storage facilities, at or
1759	1759	6 adjacent to the sites of electric generating facilities that,
1760	1760	7 as of January 1, 2016, burned coal as their primary fuel
1761	1761	8 source.
1762	1762	9 (1) The Agency shall each year, beginning in 2008, as
1763	1763	10 needed, issue a request for qualifications for experts or
1764	1764	11 expert consulting firms to develop the procurement plans
1765	1765	12 in accordance with Section 16-111.5 of the Public
1766	1766	13 Utilities Act. In order to qualify an expert or expert
1767	1767	14 consulting firm must have:
1768	1768	15 (A) direct previous experience assembling
1769	1769	16 large-scale power supply plans or portfolios for
1770	1770	17 end-use customers;
1771	1771	18 (B) an advanced degree in economics, mathematics,
1772	1772	19 engineering, risk management, or a related area of
1773	1773	20 study;
1774	1774	21 (C) 10 years of experience in the electricity
1775	1775	22 sector, including managing supply risk;
1776	1776	23 (D) expertise in wholesale electricity market
1777	1777	24 rules, including those established by the Federal
1778	1778	25 Energy Regulatory Commission and regional transmission
1779	1779	26 organizations;
1780	1780
1781	1781
1782	1782
1783	1783
1784	1784
1785	1785	SB3949 - 49 - LRB103 40603 LNS 73240 b
1786	1786
1787	1787
1788	1788	SB3949- 50 -LRB103 40603 LNS 73240 b SB3949 - 50 - LRB103 40603 LNS 73240 b
1789	1789	SB3949 - 50 - LRB103 40603 LNS 73240 b
1790	1790	1 (E) expertise in credit protocols and familiarity
1791	1791	2 with contract protocols;
1792	1792	3 (F) adequate resources to perform and fulfill the
1793	1793	4 required functions and responsibilities; and
1794	1794	5 (G) the absence of a conflict of interest and
1795	1795	6 inappropriate bias for or against potential bidders or
1796	1796	7 the affected electric utilities.
1797	1797	8 (2) The Agency shall each year, as needed, issue a
1798	1798	9 request for qualifications for a procurement administrator
1799	1799	10 to conduct the competitive procurement processes in
1800	1800	11 accordance with Section 16-111.5 of the Public Utilities
1801	1801	12 Act. In order to qualify an expert or expert consulting
1802	1802	13 firm must have:
1803	1803	14 (A) direct previous experience administering a
1804	1804	15 large-scale competitive procurement process;
1805	1805	16 (B) an advanced degree in economics, mathematics,
1806	1806	17 engineering, or a related area of study;
1807	1807	18 (C) 10 years of experience in the electricity
1808	1808	19 sector, including risk management experience;
1809	1809	20 (D) expertise in wholesale electricity market
1810	1810	21 rules, including those established by the Federal
1811	1811	22 Energy Regulatory Commission and regional transmission
1812	1812	23 organizations;
1813	1813	24 (E) expertise in credit and contract protocols;
1814	1814	25 (F) adequate resources to perform and fulfill the
1815	1815	26 required functions and responsibilities; and
1816	1816
1817	1817
1818	1818
1819	1819
1820	1820
1821	1821	SB3949 - 50 - LRB103 40603 LNS 73240 b
1822	1822
1823	1823
1824	1824	SB3949- 51 -LRB103 40603 LNS 73240 b SB3949 - 51 - LRB103 40603 LNS 73240 b
1825	1825	SB3949 - 51 - LRB103 40603 LNS 73240 b
1826	1826	1 (G) the absence of a conflict of interest and
1827	1827	2 inappropriate bias for or against potential bidders or
1828	1828	3 the affected electric utilities.
1829	1829	4 (3) The Agency shall provide affected utilities and
1830	1830	5 other interested parties with the lists of qualified
1831	1831	6 experts or expert consulting firms identified through the
1832	1832	7 request for qualifications processes that are under
1833	1833	8 consideration to develop the procurement plans and to
1834	1834	9 serve as the procurement administrator. The Agency shall
1835	1835	10 also provide each qualified expert's or expert consulting
1836	1836	11 firm's response to the request for qualifications. All
1837	1837	12 information provided under this subparagraph shall also be
1838	1838	13 provided to the Commission. The Agency may provide by rule
1839	1839	14 for fees associated with supplying the information to
1840	1840	15 utilities and other interested parties. These parties
1841	1841	16 shall, within 5 business days, notify the Agency in
1842	1842	17 writing if they object to any experts or expert consulting
1843	1843	18 firms on the lists. Objections shall be based on:
1844	1844	19 (A) failure to satisfy qualification criteria;
1845	1845	20 (B) identification of a conflict of interest; or
1846	1846	21 (C) evidence of inappropriate bias for or against
1847	1847	22 potential bidders or the affected utilities.
1848	1848	23 The Agency shall remove experts or expert consulting
1849	1849	24 firms from the lists within 10 days if there is a
1850	1850	25 reasonable basis for an objection and provide the updated
1851	1851	26 lists to the affected utilities and other interested
1852	1852
1853	1853
1854	1854
1855	1855
1856	1856
1857	1857	SB3949 - 51 - LRB103 40603 LNS 73240 b
1858	1858
1859	1859
1860	1860	SB3949- 52 -LRB103 40603 LNS 73240 b SB3949 - 52 - LRB103 40603 LNS 73240 b
1861	1861	SB3949 - 52 - LRB103 40603 LNS 73240 b
1862	1862	1 parties. If the Agency fails to remove an expert or expert
1863	1863	2 consulting firm from a list, an objecting party may seek
1864	1864	3 review by the Commission within 5 days thereafter by
1865	1865	4 filing a petition, and the Commission shall render a
1866	1866	5 ruling on the petition within 10 days. There is no right of
1867	1867	6 appeal of the Commission's ruling.
1868	1868	7 (4) The Agency shall issue requests for proposals to
1869	1869	8 the qualified experts or expert consulting firms to
1870	1870	9 develop a procurement plan for the affected utilities and
1871	1871	10 to serve as procurement administrator.
1872	1872	11 (5) The Agency shall select an expert or expert
1873	1873	12 consulting firm to develop procurement plans based on the
1874	1874	13 proposals submitted and shall award contracts of up to 5
1875	1875	14 years to those selected.
1876	1876	15 (6) The Agency shall select an expert or expert
1877	1877	16 consulting firm, with approval of the Commission, to serve
1878	1878	17 as procurement administrator based on the proposals
1879	1879	18 submitted. If the Commission rejects, within 5 days, the
1880	1880	19 Agency's selection, the Agency shall submit another
1881	1881	20 recommendation within 3 days based on the proposals
1882	1882	21 submitted. The Agency shall award a 5-year contract to the
1883	1883	22 expert or expert consulting firm so selected with
1884	1884	23 Commission approval.
1885	1885	24 (b) The experts or expert consulting firms retained by the
1886	1886	25 Agency shall, as appropriate, prepare procurement plans, and
1887	1887	26 conduct a competitive procurement process as prescribed in
1888	1888
1889	1889
1890	1890
1891	1891
1892	1892
1893	1893	SB3949 - 52 - LRB103 40603 LNS 73240 b
1894	1894
1895	1895
1896	1896	SB3949- 53 -LRB103 40603 LNS 73240 b SB3949 - 53 - LRB103 40603 LNS 73240 b
1897	1897	SB3949 - 53 - LRB103 40603 LNS 73240 b
1898	1898	1 Section 16-111.5 of the Public Utilities Act, to ensure
1899	1899	2 adequate, reliable, affordable, efficient, and environmentally
1900	1900	3 sustainable electric service at the lowest total cost over
1901	1901	4 time, taking into account any benefits of price stability, for
1902	1902	5 eligible retail customers of electric utilities that on
1903	1903	6 December 31, 2005 provided electric service to at least
1904	1904	7 100,000 customers in the State of Illinois, and for eligible
1905	1905	8 Illinois retail customers of small multi-jurisdictional
1906	1906	9 electric utilities that (i) on December 31, 2005 served less
1907	1907	10 than 100,000 customers in Illinois and (ii) request a
1908	1908	11 procurement plan for their Illinois jurisdictional load.
1909	1909	12 (c) Renewable portfolio standard.
1910	1910	13 (1)(A) The Agency shall develop a long-term renewable
1911	1911	14 resources procurement plan that shall include procurement
1912	1912	15 programs and competitive procurement events necessary to
1913	1913	16 meet the goals set forth in this subsection (c). The
1914	1914	17 initial long-term renewable resources procurement plan
1915	1915	18 shall be released for comment no later than 160 days after
1916	1916	19 June 1, 2017 (the effective date of Public Act 99-906).
1917	1917	20 The Agency shall review, and may revise on an expedited
1918	1918	21 basis, the long-term renewable resources procurement plan
1919	1919	22 at least every 2 years, which shall be conducted in
1920	1920	23 conjunction with the procurement plan under Section
1921	1921	24 16-111.5 of the Public Utilities Act to the extent
1922	1922	25 practicable to minimize administrative expense. No later
1923	1923	26 than 120 days after the effective date of this amendatory
1924	1924
1925	1925
1926	1926
1927	1927
1928	1928
1929	1929	SB3949 - 53 - LRB103 40603 LNS 73240 b
1930	1930
1931	1931
1932	1932	SB3949- 54 -LRB103 40603 LNS 73240 b SB3949 - 54 - LRB103 40603 LNS 73240 b
1933	1933	SB3949 - 54 - LRB103 40603 LNS 73240 b
1934	1934	1 Act of the 103rd General Assembly, the Agency shall
1935	1935	2 release for comment a revision to the long-term renewable
1936	1936	3 resources procurement plan, updating elements of the most
1937	1937	4 recently approved plan as needed to comply with this
1938	1938	5 amendatory Act of the 103rd General Assembly, and any
1939	1939	6 long-term renewable resources procurement plan update
1940	1940	7 published by the Agency but not yet approved by the
1941	1941	8 Illinois Commerce Commission shall be withdrawn. The
1942	1942	9 long-term renewable resources procurement plans shall be
1943	1943	10 subject to review and approval by the Commission under
1944	1944	11 Section 16-111.5 of the Public Utilities Act.
1945	1945	12 (B) Subject to subparagraph (F) of this paragraph (1),
1946	1946	13 the long-term renewable resources procurement plan shall
1947	1947	14 attempt to meet the goals for procurement of renewable
1948	1948	15 energy credits at levels of at least the following overall
1949	1949	16 percentages: 13% by the 2017 delivery year; increasing by
1950	1950	17 at least 1.5% each delivery year thereafter to at least
1951	1951	18 25% by the 2025 delivery year; increasing by at least 3%
1952	1952	19 each delivery year thereafter to at least 40% by the 2030
1953	1953	20 delivery year, and continuing at no less than 40% for each
1954	1954	21 delivery year thereafter. The Agency shall attempt to
1955	1955	22 procure 50% by delivery year 2040. The Agency shall
1956	1956	23 determine the annual increase between delivery year 2030
1957	1957	24 and delivery year 2040, if any, taking into account energy
1958	1958	25 demand, other energy resources, and other public policy
1959	1959	26 goals. In the event of a conflict between these goals and
1960	1960
1961	1961
1962	1962
1963	1963
1964	1964
1965	1965	SB3949 - 54 - LRB103 40603 LNS 73240 b
1966	1966
1967	1967
1968	1968	SB3949- 55 -LRB103 40603 LNS 73240 b SB3949 - 55 - LRB103 40603 LNS 73240 b
1969	1969	SB3949 - 55 - LRB103 40603 LNS 73240 b
1970	1970	1 the new wind, new photovoltaic, and hydropower procurement
1971	1971	2 requirements described in items (i) through (iii) of
1972	1972	3 subparagraph (C) of this paragraph (1), the long-term plan
1973	1973	4 shall prioritize compliance with the new wind, new
1974	1974	5 photovoltaic, and hydropower procurement requirements
1975	1975	6 described in items (i) through (iii) of subparagraph (C)
1976	1976	7 of this paragraph (1) over the annual percentage targets
1977	1977	8 described in this subparagraph (B). The Agency shall not
1978	1978	9 comply with the annual percentage targets described in
1979	1979	10 this subparagraph (B) by procuring renewable energy
1980	1980	11 credits that are unlikely to lead to the development of
1981	1981	12 new renewable resources or new, modernized, or retooled
1982	1982	13 hydropower facilities.
1983	1983	14 For the delivery year beginning June 1, 2017, the
1984	1984	15 procurement plan shall attempt to include, subject to the
1985	1985	16 prioritization outlined in this subparagraph (B),
1986	1986	17 cost-effective renewable energy resources equal to at
1987	1987	18 least 13% of each utility's load for eligible retail
1988	1988	19 customers and 13% of the applicable portion of each
1989	1989	20 utility's load for retail customers who are not eligible
1990	1990	21 retail customers, which applicable portion shall equal 50%
1991	1991	22 of the utility's load for retail customers who are not
1992	1992	23 eligible retail customers on February 28, 2017.
1993	1993	24 For the delivery year beginning June 1, 2018, the
1994	1994	25 procurement plan shall attempt to include, subject to the
1995	1995	26 prioritization outlined in this subparagraph (B),
1996	1996
1997	1997
1998	1998
1999	1999
2000	2000
2001	2001	SB3949 - 55 - LRB103 40603 LNS 73240 b
2002	2002
2003	2003
2004	2004	SB3949- 56 -LRB103 40603 LNS 73240 b SB3949 - 56 - LRB103 40603 LNS 73240 b
2005	2005	SB3949 - 56 - LRB103 40603 LNS 73240 b
2006	2006	1 cost-effective renewable energy resources equal to at
2007	2007	2 least 14.5% of each utility's load for eligible retail
2008	2008	3 customers and 14.5% of the applicable portion of each
2009	2009	4 utility's load for retail customers who are not eligible
2010	2010	5 retail customers, which applicable portion shall equal 75%
2011	2011	6 of the utility's load for retail customers who are not
2012	2012	7 eligible retail customers on February 28, 2017.
2013	2013	8 For the delivery year beginning June 1, 2019, and for
2014	2014	9 each year thereafter, the procurement plans shall attempt
2015	2015	10 to include, subject to the prioritization outlined in this
2016	2016	11 subparagraph (B), cost-effective renewable energy
2017	2017	12 resources equal to a minimum percentage of each utility's
2018	2018	13 load for all retail customers as follows: 16% by June 1,
2019	2019	14 2019; increasing by 1.5% each year thereafter to 25% by
2020	2020	15 June 1, 2025; and 25% by June 1, 2026; increasing by at
2021	2021	16 least 3% each delivery year thereafter to at least 40% by
2022	2022	17 the 2030 delivery year, and continuing at no less than 40%
2023	2023	18 for each delivery year thereafter. The Agency shall
2024	2024	19 attempt to procure 50% by delivery year 2040. The Agency
2025	2025	20 shall determine the annual increase between delivery year
2026	2026	21 2030 and delivery year 2040, if any, taking into account
2027	2027	22 energy demand, other energy resources, and other public
2028	2028	23 policy goals.
2029	2029	24 For each delivery year, the Agency shall first
2030	2030	25 recognize each utility's obligations for that delivery
2031	2031	26 year under existing contracts. Any renewable energy
2032	2032
2033	2033
2034	2034
2035	2035
2036	2036
2037	2037	SB3949 - 56 - LRB103 40603 LNS 73240 b
2038	2038
2039	2039
2040	2040	SB3949- 57 -LRB103 40603 LNS 73240 b SB3949 - 57 - LRB103 40603 LNS 73240 b
2041	2041	SB3949 - 57 - LRB103 40603 LNS 73240 b
2042	2042	1 credits under existing contracts, including renewable
2043	2043	2 energy credits as part of renewable energy resources,
2044	2044	3 shall be used to meet the goals set forth in this
2045	2045	4 subsection (c) for the delivery year.
2046	2046	5 (C) The long-term renewable resources procurement plan
2047	2047	6 described in subparagraph (A) of this paragraph (1) shall
2048	2048	7 include the procurement of renewable energy credits from
2049	2049	8 new projects pursuant to the following terms:
2050	2050	9 (i) At least 10,000,000 renewable energy credits
2051	2051	10 delivered annually by the end of the 2021 delivery
2052	2052	11 year, and increasing ratably to reach 45,000,000
2053	2053	12 renewable energy credits delivered annually from new
2054	2054	13 wind and solar projects by the end of delivery year
2055	2055	14 2030 such that the goals in subparagraph (B) of this
2056	2056	15 paragraph (1) are met entirely by procurements of
2057	2057	16 renewable energy credits from new wind and
2058	2058	17 photovoltaic projects. Of that amount, to the extent
2059	2059	18 possible, the Agency shall procure 45% from wind and
2060	2060	19 hydropower projects and 55% from photovoltaic
2061	2061	20 projects. Of the amount to be procured from
2062	2062	21 photovoltaic projects, the Agency shall procure: at
2063	2063	22 least 50% from solar photovoltaic projects using the
2064	2064	23 program outlined in subparagraph (K) of this paragraph
2065	2065	24 (1) from distributed renewable energy generation
2066	2066	25 devices or community renewable generation projects; at
2067	2067	26 least 47% from utility-scale solar projects; at least
2068	2068
2069	2069
2070	2070
2071	2071
2072	2072
2073	2073	SB3949 - 57 - LRB103 40603 LNS 73240 b
2074	2074
2075	2075
2076	2076	SB3949- 58 -LRB103 40603 LNS 73240 b SB3949 - 58 - LRB103 40603 LNS 73240 b
2077	2077	SB3949 - 58 - LRB103 40603 LNS 73240 b
2078	2078	1 3% from brownfield site photovoltaic projects that are
2079	2079	2 not community renewable generation projects. High
2080	2080	3 voltage direct current renewable energy credits
2081	2081	4 procured under item (ii-5) shall not be counted toward
2082	2082	5 the procurement requirements of this item.
2083	2083	6 In developing the long-term renewable resources
2084	2084	7 procurement plan, the Agency shall consider other
2085	2085	8 approaches, in addition to competitive procurements,
2086	2086	9 that can be used to procure renewable energy credits
2087	2087	10 from brownfield site photovoltaic projects and thereby
2088	2088	11 help return blighted or contaminated land to
2089	2089	12 productive use while enhancing public health and the
2090	2090	13 well-being of Illinois residents, including those in
2091	2091	14 environmental justice communities, as defined using
2092	2092	15 existing methodologies and findings used by the Agency
2093	2093	16 and its Administrator in its Illinois Solar for All
2094	2094	17 Program. The Agency shall also consider other
2095	2095	18 approaches, in addition to competitive procurements,
2096	2096	19 to procure renewable energy credits from new and
2097	2097	20 existing hydropower facilities to support the
2098	2098	21 development and maintenance of these facilities. The
2099	2099	22 Agency shall explore options to convert existing dams
2100	2100	23 but shall not consider approaches to develop new dams
2101	2101	24 where they do not already exist.
2102	2102	25 (ii) In any given delivery year, if forecasted
2103	2103	26 expenses are less than the maximum budget available
2104	2104
2105	2105
2106	2106
2107	2107
2108	2108
2109	2109	SB3949 - 58 - LRB103 40603 LNS 73240 b
2110	2110
2111	2111
2112	2112	SB3949- 59 -LRB103 40603 LNS 73240 b SB3949 - 59 - LRB103 40603 LNS 73240 b
2113	2113	SB3949 - 59 - LRB103 40603 LNS 73240 b
2114	2114	1 under subparagraph (E) of this paragraph (1), the
2115	2115	2 Agency shall continue to procure new renewable energy
2116	2116	3 credits until that budget is exhausted in the manner
2117	2117	4 outlined in item (i) of this subparagraph (C).
2118	2118	5 (ii-5) At least 3,000,000 high voltage direct
2119	2119	6 current renewable energy credits shall be procured
2120	2120	7 under item (iii-5) of subparagraph (G), delivered
2121	2121	8 annually beginning in 2028, or a later date designated
2122	2122	9 by the Agency, subject to availability; at least
2123	2123	10 6,000,000 high voltage direct current renewable energy
2124	2124	11 credits shall be procured under item (iii-5) of
2125	2125	12 subparagraph (G), delivered annually beginning in
2126	2126	13 2030, or a later date designated by the Agency,
2127	2127	14 subject to availability; and at least 9,000,000 high
2128	2128	15 voltage direct current renewable energy credits shall
2129	2129	16 be procured under item (iii-5) of subparagraph (G),
2130	2130	17 delivered annually beginning in 2035, or a later date
2131	2131	18 designated by the Agency, subject to availability.
2132	2132	19 (iii) For purposes of this Section:
2133	2133	20 "New wind projects" means wind renewable energy
2134	2134	21 facilities that are energized after June 1, 2017 for
2135	2135	22 the delivery year commencing June 1, 2017.
2136	2136	23 "New photovoltaic projects" means photovoltaic
2137	2137	24 renewable energy facilities that are energized after
2138	2138	25 June 1, 2017. Photovoltaic projects developed under
2139	2139	26 Section 1-56 of this Act shall not apply towards the
2140	2140
2141	2141
2142	2142
2143	2143
2144	2144
2145	2145	SB3949 - 59 - LRB103 40603 LNS 73240 b
2146	2146
2147	2147
2148	2148	SB3949- 60 -LRB103 40603 LNS 73240 b SB3949 - 60 - LRB103 40603 LNS 73240 b
2149	2149	SB3949 - 60 - LRB103 40603 LNS 73240 b
2150	2150	1 new photovoltaic project requirements in this
2151	2151	2 subparagraph (C).
2152	2152	3 For purposes of calculating whether the Agency has
2153	2153	4 procured enough new wind and solar renewable energy
2154	2154	5 credits required by this subparagraph (C), renewable
2155	2155	6 energy facilities that have a multi-year renewable
2156	2156	7 energy credit delivery contract with the utility
2157	2157	8 through at least delivery year 2030 shall be
2158	2158	9 considered new, however no renewable energy credits
2159	2159	10 from contracts entered into before June 1, 2021 shall
2160	2160	11 be used to calculate whether the Agency has procured
2161	2161	12 the correct proportion of new wind and new solar
2162	2162	13 contracts described in this subparagraph (C) for
2163	2163	14 delivery year 2021 and thereafter.
2164	2164	15 (D) Renewable energy credits shall be cost effective.
2165	2165	16 For purposes of this subsection (c), "cost effective"
2166	2166	17 means that the costs of procuring renewable energy
2167	2167	18 resources do not cause the limit stated in subparagraph
2168	2168	19 (E) of this paragraph (1) to be exceeded and, for
2169	2169	20 renewable energy credits procured through a competitive
2170	2170	21 procurement event, do not exceed benchmarks based on
2171	2171	22 market prices for like products in the region. For
2172	2172	23 purposes of this subsection (c), "like products" means
2173	2173	24 contracts for renewable energy credits from the same or
2174	2174	25 substantially similar technology, same or substantially
2175	2175	26 similar vintage (new or existing), the same or
2176	2176
2177	2177
2178	2178
2179	2179
2180	2180
2181	2181	SB3949 - 60 - LRB103 40603 LNS 73240 b
2182	2182
2183	2183
2184	2184	SB3949- 61 -LRB103 40603 LNS 73240 b SB3949 - 61 - LRB103 40603 LNS 73240 b
2185	2185	SB3949 - 61 - LRB103 40603 LNS 73240 b
2186	2186	1 substantially similar quantity, and the same or
2187	2187	2 substantially similar contract length and structure.
2188	2188	3 Benchmarks shall reflect development, financing, or
2189	2189	4 related costs resulting from requirements imposed through
2190	2190	5 other provisions of State law, including, but not limited
2191	2191	6 to, requirements in subparagraphs (P) and (Q) of this
2192	2192	7 paragraph (1) and the Renewable Energy Facilities
2193	2193	8 Agricultural Impact Mitigation Act. Confidential
2194	2194	9 benchmarks shall be developed by the procurement
2195	2195	10 administrator, in consultation with the Commission staff,
2196	2196	11 Agency staff, and the procurement monitor and shall be
2197	2197	12 subject to Commission review and approval. If price
2198	2198	13 benchmarks for like products in the region are not
2199	2199	14 available, the procurement administrator shall establish
2200	2200	15 price benchmarks based on publicly available data on
2201	2201	16 regional technology costs and expected current and future
2202	2202	17 regional energy prices. The benchmarks in this Section
2203	2203	18 shall not be used to curtail or otherwise reduce
2204	2204	19 contractual obligations entered into by or through the
2205	2205	20 Agency prior to June 1, 2017 (the effective date of Public
2206	2206	21 Act 99-906).
2207	2207	22 (E) For purposes of this subsection (c), the required
2208	2208	23 procurement of cost-effective renewable energy resources
2209	2209	24 for a particular year commencing prior to June 1, 2017
2210	2210	25 shall be measured as a percentage of the actual amount of
2211	2211	26 electricity (megawatt-hours) supplied by the electric
2212	2212
2213	2213
2214	2214
2215	2215
2216	2216
2217	2217	SB3949 - 61 - LRB103 40603 LNS 73240 b
2218	2218
2219	2219
2220	2220	SB3949- 62 -LRB103 40603 LNS 73240 b SB3949 - 62 - LRB103 40603 LNS 73240 b
2221	2221	SB3949 - 62 - LRB103 40603 LNS 73240 b
2222	2222	1 utility to eligible retail customers in the delivery year
2223	2223	2 ending immediately prior to the procurement, and, for
2224	2224	3 delivery years commencing on and after June 1, 2017, the
2225	2225	4 required procurement of cost-effective renewable energy
2226	2226	5 resources for a particular year shall be measured as a
2227	2227	6 percentage of the actual amount of electricity
2228	2228	7 (megawatt-hours) delivered by the electric utility in the
2229	2229	8 delivery year ending immediately prior to the procurement,
2230	2230	9 to all retail customers in its service territory. For
2231	2231	10 purposes of this subsection (c), the amount paid per
2232	2232	11 kilowatthour means the total amount paid for electric
2233	2233	12 service expressed on a per kilowatthour basis. For
2234	2234	13 purposes of this subsection (c), the total amount paid for
2235	2235	14 electric service includes without limitation amounts paid
2236	2236	15 for supply, transmission, capacity, distribution,
2237	2237	16 surcharges, and add-on taxes.
2238	2238	17 Notwithstanding the requirements of this subsection
2239	2239	18 (c), the total of renewable energy resources procured
2240	2240	19 under the procurement plan for any single year shall be
2241	2241	20 subject to the limitations of this subparagraph (E),
2242	2242	21 except for high voltage direct current renewable energy
2243	2243	22 credits to the extent compensated using funds collected
2244	2244	23 through a tariffed charge authorized by subsection (i-10)
2245	2245	24 of Section 16-108 of the Public Utilities Act. Such
2246	2246	25 procurement shall be reduced for all retail customers
2247	2247	26 based on the amount necessary to limit the annual
2248	2248
2249	2249
2250	2250
2251	2251
2252	2252
2253	2253	SB3949 - 62 - LRB103 40603 LNS 73240 b
2254	2254
2255	2255
2256	2256	SB3949- 63 -LRB103 40603 LNS 73240 b SB3949 - 63 - LRB103 40603 LNS 73240 b
2257	2257	SB3949 - 63 - LRB103 40603 LNS 73240 b
2258	2258	1 estimated average net increase due to the costs of these
2259	2259	2 resources included in the amounts paid by eligible retail
2260	2260	3 customers in connection with electric service to no more
2261	2261	4 than 4.25% of the amount paid per kilowatthour by those
2262	2262	5 customers during the year ending May 31, 2009. To arrive
2263	2263	6 at a maximum dollar amount of renewable energy resources
2264	2264	7 to be procured for the particular delivery year, the
2265	2265	8 resulting per kilowatthour amount shall be applied to the
2266	2266	9 actual amount of kilowatthours of electricity delivered,
2267	2267	10 or applicable portion of such amount as specified in
2268	2268	11 paragraph (1) of this subsection (c), as applicable, by
2269	2269	12 the electric utility in the delivery year immediately
2270	2270	13 prior to the procurement to all retail customers in its
2271	2271	14 service territory. The calculations required by this
2272	2272	15 subparagraph (E) shall be made only once for each delivery
2273	2273	16 year at the time that the renewable energy resources are
2274	2274	17 procured. Once the determination as to the amount of
2275	2275	18 renewable energy resources to procure is made based on the
2276	2276	19 calculations set forth in this subparagraph (E) and the
2277	2277	20 contracts procuring those amounts are executed, no
2278	2278	21 subsequent rate impact determinations shall be made and no
2279	2279	22 adjustments to those contract amounts shall be allowed.
2280	2280	23 All costs incurred under such contracts shall be fully
2281	2281	24 recoverable by the electric utility as provided in this
2282	2282	25 Section.
2283	2283	26 (F) If the limitation on the amount of renewable
2284	2284
2285	2285
2286	2286
2287	2287
2288	2288
2289	2289	SB3949 - 63 - LRB103 40603 LNS 73240 b
2290	2290
2291	2291
2292	2292	SB3949- 64 -LRB103 40603 LNS 73240 b SB3949 - 64 - LRB103 40603 LNS 73240 b
2293	2293	SB3949 - 64 - LRB103 40603 LNS 73240 b
2294	2294	1 energy resources procured in subparagraph (E) of this
2295	2295	2 paragraph (1) prevents the Agency from meeting all of the
2296	2296	3 goals in this subsection (c), the Agency's long-term plan
2297	2297	4 shall prioritize compliance with the requirements of this
2298	2298	5 subsection (c) regarding renewable energy credits in the
2299	2299	6 following order:
2300	2300	7 (i) renewable energy credits under existing
2301	2301	8 contractual obligations as of June 1, 2021;
2302	2302	9 (i-5) funding for the Illinois Solar for All
2303	2303	10 Program, as described in subparagraph (O) of this
2304	2304	11 paragraph (1);
2305	2305	12 (ii) renewable energy credits necessary to comply
2306	2306	13 with the new wind and new photovoltaic procurement
2307	2307	14 requirements described in items (i) through (iii) of
2308	2308	15 subparagraph (C) of this paragraph (1); and
2309	2309	16 (iii) renewable energy credits necessary to meet
2310	2310	17 the remaining requirements of this subsection (c).
2311	2311	18 (G) The following provisions shall apply to the
2312	2312	19 Agency's procurement of renewable energy credits under
2313	2313	20 this subsection (c):
2314	2314	21 (i) Notwithstanding whether a long-term renewable
2315	2315	22 resources procurement plan has been approved, the
2316	2316	23 Agency shall conduct an initial forward procurement
2317	2317	24 for renewable energy credits from new utility-scale
2318	2318	25 wind projects within 160 days after June 1, 2017 (the
2319	2319	26 effective date of Public Act 99-906). For the purposes
2320	2320
2321	2321
2322	2322
2323	2323
2324	2324
2325	2325	SB3949 - 64 - LRB103 40603 LNS 73240 b
2326	2326
2327	2327
2328	2328	SB3949- 65 -LRB103 40603 LNS 73240 b SB3949 - 65 - LRB103 40603 LNS 73240 b
2329	2329	SB3949 - 65 - LRB103 40603 LNS 73240 b
2330	2330	1 of this initial forward procurement, the Agency shall
2331	2331	2 solicit 15-year contracts for delivery of 1,000,000
2332	2332	3 renewable energy credits delivered annually from new
2333	2333	4 utility-scale wind projects to begin delivery on June
2334	2334	5 1, 2019, if available, but not later than June 1, 2021,
2335	2335	6 unless the project has delays in the establishment of
2336	2336	7 an operating interconnection with the applicable
2337	2337	8 transmission or distribution system as a result of the
2338	2338	9 actions or inactions of the transmission or
2339	2339	10 distribution provider, or other causes for force
2340	2340	11 majeure as outlined in the procurement contract, in
2341	2341	12 which case, not later than June 1, 2022. Payments to
2342	2342	13 suppliers of renewable energy credits shall commence
2343	2343	14 upon delivery. Renewable energy credits procured under
2344	2344	15 this initial procurement shall be included in the
2345	2345	16 Agency's long-term plan and shall apply to all
2346	2346	17 renewable energy goals in this subsection (c).
2347	2347	18 (ii) Notwithstanding whether a long-term renewable
2348	2348	19 resources procurement plan has been approved, the
2349	2349	20 Agency shall conduct an initial forward procurement
2350	2350	21 for renewable energy credits from new utility-scale
2351	2351	22 solar projects and brownfield site photovoltaic
2352	2352	23 projects within one year after June 1, 2017 (the
2353	2353	24 effective date of Public Act 99-906). For the purposes
2354	2354	25 of this initial forward procurement, the Agency shall
2355	2355	26 solicit 15-year contracts for delivery of 1,000,000
2356	2356
2357	2357
2358	2358
2359	2359
2360	2360
2361	2361	SB3949 - 65 - LRB103 40603 LNS 73240 b
2362	2362
2363	2363
2364	2364	SB3949- 66 -LRB103 40603 LNS 73240 b SB3949 - 66 - LRB103 40603 LNS 73240 b
2365	2365	SB3949 - 66 - LRB103 40603 LNS 73240 b
2366	2366	1 renewable energy credits delivered annually from new
2367	2367	2 utility-scale solar projects and brownfield site
2368	2368	3 photovoltaic projects to begin delivery on June 1,
2369	2369	4 2019, if available, but not later than June 1, 2021,
2370	2370	5 unless the project has delays in the establishment of
2371	2371	6 an operating interconnection with the applicable
2372	2372	7 transmission or distribution system as a result of the
2373	2373	8 actions or inactions of the transmission or
2374	2374	9 distribution provider, or other causes for force
2375	2375	10 majeure as outlined in the procurement contract, in
2376	2376	11 which case, not later than June 1, 2022. The Agency may
2377	2377	12 structure this initial procurement in one or more
2378	2378	13 discrete procurement events. Payments to suppliers of
2379	2379	14 renewable energy credits shall commence upon delivery.
2380	2380	15 Renewable energy credits procured under this initial
2381	2381	16 procurement shall be included in the Agency's
2382	2382	17 long-term plan and shall apply to all renewable energy
2383	2383	18 goals in this subsection (c).
2384	2384	19 (iii) Notwithstanding whether the Commission has
2385	2385	20 approved the periodic long-term renewable resources
2386	2386	21 procurement plan revision described in Section
2387	2387	22 16-111.5 of the Public Utilities Act, the Agency shall
2388	2388	23 conduct at least one subsequent forward procurement
2389	2389	24 for renewable energy credits from new utility-scale
2390	2390	25 wind projects, new utility-scale solar projects, and
2391	2391	26 new brownfield site photovoltaic projects within 240
2392	2392
2393	2393
2394	2394
2395	2395
2396	2396
2397	2397	SB3949 - 66 - LRB103 40603 LNS 73240 b
2398	2398
2399	2399
2400	2400	SB3949- 67 -LRB103 40603 LNS 73240 b SB3949 - 67 - LRB103 40603 LNS 73240 b
2401	2401	SB3949 - 67 - LRB103 40603 LNS 73240 b
2402	2402	1 days after the effective date of this amendatory Act
2403	2403	2 of the 102nd General Assembly in quantities necessary
2404	2404	3 to meet the requirements of subparagraph (C) of this
2405	2405	4 paragraph (1) through the delivery year beginning June
2406	2406	5 1, 2021.
2407	2407	6 (iii-5) Notwithstanding whether the Commission has
2408	2408	7 approved the periodic long-term renewable resources
2409	2409	8 procurement plan revision described in Section
2410	2410	9 16-111.5 of the Public Utilities Act, the Agency shall
2411	2411	10 conduct at least one forward procurement for high
2412	2412	11 voltage direct current renewable energy credits within
2413	2413	12 240 days after the effective date of this amendatory
2414	2414	13 Act of the 103rd General Assembly, in quantities
2415	2415	14 necessary to meet the requirements of item (ii-5) of
2416	2416	15 subparagraph (C) of paragraph (1) of this subsection
2417	2417	16 (c), as follows:
2418	2418	17 (1) The Agency shall structure procurement and
2419	2419	18 contract design of high voltage direct current
2420	2420	19 renewable energy credits in a manner that is
2421	2421	20 substantially similar to the methods used for
2422	2422	21 indexed renewable energy credits, as described in
2423	2423	22 item (v) of this subparagraph (G), except as
2424	2424	23 otherwise required by this item (iii-5).
2425	2425	24 (2) Each bid shall be made by, or on behalf of,
2426	2426	25 a generation facility at a single location, or a
2427	2427	26 portion of that generation facility, that is a
2428	2428
2429	2429
2430	2430
2431	2431
2432	2432
2433	2433	SB3949 - 67 - LRB103 40603 LNS 73240 b
2434	2434
2435	2435
2436	2436	SB3949- 68 -LRB103 40603 LNS 73240 b SB3949 - 68 - LRB103 40603 LNS 73240 b
2437	2437	SB3949 - 68 - LRB103 40603 LNS 73240 b
2438	2438	1 utility-scale wind project or a utility-scale
2439	2439	2 solar project energized or repowered after the
2440	2440	3 effective date of this amendatory Act of the 103rd
2441	2441	4 General Assembly. Nothing prohibits 2 or more
2442	2442	5 separate portions of the same generating facility
2443	2443	6 or 2 or more separate generating facilities from
2444	2444	7 issuing separate bids while using the same
2445	2445	8 pre-qualified high voltage direct current
2446	2446	9 transmission facility to qualify for high voltage
2447	2447	10 direct current renewable energy credits. Any third
2448	2448	11 party may bid on behalf of one or more generation
2449	2449	12 facilities or a portion of that generation
2450	2450	13 facility if the third party demonstrates to the
2451	2451	14 Agency that it has the authority to bid for the
2452	2452	15 generation facilities or a portion of that
2453	2453	16 generation facility and that the third party has
2454	2454	17 the authority to transfer or cause to be
2455	2455	18 transferred title to renewable energy credits
2456	2456	19 generated by the generation facilities or a
2457	2457	20 portion of that generation facility.
2458	2458	21 (3) Each bid shall include a strike price and
2459	2459	22 total target delivery quantity over the life of
2460	2460	23 the contract and a description of plans to
2461	2461	24 maximize all project revenues and subtract those
2462	2462	25 revenues from the total amount owed under the high
2463	2463	26 voltage direct current renewable energy credit
2464	2464
2465	2465
2466	2466
2467	2467
2468	2468
2469	2469	SB3949 - 68 - LRB103 40603 LNS 73240 b
2470	2470
2471	2471
2472	2472	SB3949- 69 -LRB103 40603 LNS 73240 b SB3949 - 69 - LRB103 40603 LNS 73240 b
2473	2473	SB3949 - 69 - LRB103 40603 LNS 73240 b
2474	2474	1 contract, including any revenues a project may
2475	2475	2 receive as described in subitem (12) of this item
2476	2476	3 (iii-5). The Agency, the Commission, the
2477	2477	4 procurement administrator, and the procurement
2478	2478	5 monitor shall exclusively evaluate each bid based
2479	2479	6 only on the strike price and delivery quantity,
2480	2480	7 provided that the Agency shall only allow one or
2481	2481	8 more generating facilities or portions thereof to
2482	2482	9 bid if they meet qualification standards,
2483	2483	10 including identifying the high voltage direct
2484	2484	11 current transmission facility transmitting the
2485	2485	12 energy associated with the high voltage direct
2486	2486	13 current renewable energy credits, submitting an
2487	2487	14 equity plan described in subitem (15) of this item
2488	2488	15 (iii-5), and providing evidence that the high
2489	2489	16 voltage direct current transmission facility
2490	2490	17 connects or will connect 2 separate balancing
2491	2491	18 authorities. The Agency, the Commission, the
2492	2492	19 procurement administrator, and the procurement
2493	2493	20 monitor shall assume that the strike price
2494	2494	21 includes costs to transmit on the high voltage
2495	2495	22 direct current transmission facilities associated
2496	2496	23 with the bid.
2497	2497	24 (4) The standard contracts shall be for 25
2498	2498	25 years. In creating the standard contracts, the
2499	2499	26 Agency shall first ask potential bidders to
2500	2500
2501	2501
2502	2502
2503	2503
2504	2504
2505	2505	SB3949 - 69 - LRB103 40603 LNS 73240 b
2506	2506
2507	2507
2508	2508	SB3949- 70 -LRB103 40603 LNS 73240 b SB3949 - 70 - LRB103 40603 LNS 73240 b
2509	2509	SB3949 - 70 - LRB103 40603 LNS 73240 b
2510	2510	1 identify material differences with the indexed
2511	2511	2 renewable energy credit contract used for other
2512	2512	3 procurements.
2513	2513	4 (5) Settlement of the index price shall be, at
2514	2514	5 the election of the bidder, against either the
2515	2515	6 node into which the applicable high voltage direct
2516	2516	7 current transmission facility interconnects or the
2517	2517	8 Illinois zone of Midcontinent Independent System
2518	2518	9 Operator, Inc., or PJM Interconnection, LLC, into
2519	2519	10 which the high voltage direct current transmission
2520	2520	11 facility transmits.
2521	2521	12 (6) Payment to a winning bidder shall be
2522	2522	13 monthly, and the payment shall be calculated
2523	2523	14 according to the following formula:
2524	2524	15 (A) the sum across all hours over the
2525	2525	16 applicable monthly period of the strike price
2526	2526	17 bid by the winning bidder, subject to subitem
2527	2527	18 (14) of this item (iii-5), minus the index
2528	2528	19 price, which for the purposes of this subitem
2529	2529	20 (6) shall be the hourly nodal real-time energy
2530	2530	21 price at a node designated by the winning
2531	2531	22 bidder, multiplied by the energy generation
2532	2532	23 during that hour; and
2533	2533	24 (B) subtracting from the cumulative amount
2534	2534	25 calculated under subdivision (A) any capacity
2535	2535	26 payment actually made to the generating unit
2536	2536
2537	2537
2538	2538
2539	2539
2540	2540
2541	2541	SB3949 - 70 - LRB103 40603 LNS 73240 b
2542	2542
2543	2543
2544	2544	SB3949- 71 -LRB103 40603 LNS 73240 b SB3949 - 71 - LRB103 40603 LNS 73240 b
2545	2545	SB3949 - 71 - LRB103 40603 LNS 73240 b
2546	2546	1 for its participation in the Midcontinent
2547	2547	2 Independent System Operator, Inc., PJM
2548	2548	3 Interconnection, LLC, or a bilateral capacity
2549	2549	4 transaction as described in subitem (12) of
2550	2550	5 this item (iii-5).
2551	2551	6 The Agency, the Commission, the procurement
2552	2552	7 administrator, and the procurement monitor shall
2553	2553	8 create a confidential benchmark to evaluate a bid
2554	2554	9 by assuming that the strike price includes the
2555	2555	10 cost of transmission over a pre-qualified high
2556	2556	11 voltage direct current transmission facility.
2557	2557	12 Payments shall be made on a monthly basis for
2558	2558	13 high voltage direct current renewable energy
2559	2559	14 credits actually delivered, not to exceed, on a
2560	2560	15 3-year rolling average basis, 120% of the delivery
2561	2561	16 quantity during that 3-year rolling period.
2562	2562	17 (7) The Agency shall hold a supplemental
2563	2563	18 procurement event within 150 days after the
2564	2564	19 results of each procurement, as needed, to procure
2565	2565	20 the remaining amount of high voltage direct
2566	2566	21 current renewable energy credits so that the total
2567	2567	22 procured is within 5% of the amount of high
2568	2568	23 voltage direct current renewable energy credits to
2569	2569	24 be delivered annually, described in item (ii-5) of
2570	2570	25 subparagraph (C) of paragraph (1) of this
2571	2571	26 subsection (c).
2572	2572
2573	2573
2574	2574
2575	2575
2576	2576
2577	2577	SB3949 - 71 - LRB103 40603 LNS 73240 b
2578	2578
2579	2579
2580	2580	SB3949- 72 -LRB103 40603 LNS 73240 b SB3949 - 72 - LRB103 40603 LNS 73240 b
2581	2581	SB3949 - 72 - LRB103 40603 LNS 73240 b
2582	2582	1 (8) The primary funding source for contracts
2583	2583	2 entered into under this item (iii-5) shall be the
2584	2584	3 tariffs proposed and approved under subsection
2585	2585	4 (i-10) of Section 16-108 of the Public Utilities
2586	2586	5 Act.
2587	2587	6 (9) Prior to a bidding event, the Agency shall
2588	2588	7 pre-qualify high voltage direct current
2589	2589	8 transmission facilities, including high voltage
2590	2590	9 direct current transmission facilities that are
2591	2591	10 under development at the time of the procurement.
2592	2592	11 In order to pre-qualify as a high voltage direct
2593	2593	12 current transmission facility, the owner or
2594	2594	13 operator of a high voltage direct current
2595	2595	14 transmission facility or a generating unit, or a
2596	2596	15 third party on its behalf, shall provide the
2597	2597	16 Agency with evidence that the high voltage direct
2598	2598	17 current transmission facility:
2599	2599	18 (A) has submitted an attestation that the
2600	2600	19 high voltage direct current transmission
2601	2601	20 facility was or will be constructed under a
2602	2602	21 project labor agreement signed by 2 or more
2603	2603	22 construction crafts in compliance with the
2604	2604	23 obligations under item (2) of subparagraph (Q)
2605	2605	24 of this paragraph (1);
2606	2606	25 (B) has submitted one or more equity
2607	2607	26 plans;
2608	2608
2609	2609
2610	2610
2611	2611
2612	2612
2613	2613	SB3949 - 72 - LRB103 40603 LNS 73240 b
2614	2614
2615	2615
2616	2616	SB3949- 73 -LRB103 40603 LNS 73240 b SB3949 - 73 - LRB103 40603 LNS 73240 b
2617	2617	SB3949 - 73 - LRB103 40603 LNS 73240 b
2618	2618	1 (C) is not an electric utility as that
2619	2619	2 term is defined in Section 3-105 of the Public
2620	2620	3 Utilities Act and serving more than 100,000
2621	2621	4 customers as of January 1, 2021;
2622	2622	5 (D) provides evidence that the high
2623	2623	6 voltage direct current transmission line
2624	2624	7 connects one or more independent system
2625	2625	8 operators or regional transmission
2626	2626	9 organizations; and
2627	2627	10 (E) otherwise meets the definition of a
2628	2628	11 high voltage direct current transmission
2629	2629	12 facility.
2630	2630	13 Not less than 20 business days before the
2631	2631	14 initial applicant submission for the procurement
2632	2632	15 event described in this item (iii-5), the Agency
2633	2633	16 shall provide a publicly available list of high
2634	2634	17 voltage direct current transmission facilities
2635	2635	18 that have been pre-qualified.
2636	2636	19 (10) As part of the bidding process, each
2637	2637	20 generation facility shall provide evidence that
2638	2638	21 the generation facility has or will have a right
2639	2639	22 to transmit over a pre-qualified high voltage
2640	2640	23 direct current transmission facility a sufficient
2641	2641	24 quantity of energy to fulfill its bid quantity
2642	2642	25 based on an estimated capacity factor and an
2643	2643	26 estimated or actual nameplate capacity.
2644	2644
2645	2645
2646	2646
2647	2647
2648	2648
2649	2649	SB3949 - 73 - LRB103 40603 LNS 73240 b
2650	2650
2651	2651
2652	2652	SB3949- 74 -LRB103 40603 LNS 73240 b SB3949 - 74 - LRB103 40603 LNS 73240 b
2653	2653	SB3949 - 74 - LRB103 40603 LNS 73240 b
2654	2654	1 (11) The Agency may require collateral prior
2655	2655	2 to signing an indexed renewable energy credit
2656	2656	3 contract under this item (iii-5), not to exceed
2657	2657	4 $1,000 per megawatt of proposed nameplate capacity
2658	2658	5 of the generation unit, and collateral after the
2659	2659	6 signing of the indexed renewable energy credit
2660	2660	7 contract, but prior to delivery of the first high
2661	2661	8 voltage direct current indexed renewable energy
2662	2662	9 credit, not to exceed $4 per high voltage direct
2663	2663	10 current renewable energy credit projected for
2664	2664	11 delivery in the initial year of operation.
2665	2665	12 (12) As part of the bidding process, the
2666	2666	13 applicant shall commit that not less than the
2667	2667	14 prevailing wage, as determined under the
2668	2668	15 Prevailing Wage Act, was or will be paid to
2669	2669	16 employees who are engaged in construction
2670	2670	17 activities associated with the selected project,
2671	2671	18 and that on or before the commercial operation
2672	2672	19 date of the facility, the applicant shall file a
2673	2673	20 report with the Agency certifying that the
2674	2674	21 requirements of this paragraph (12) have been met.
2675	2675	22 (13) Each generation facility, or portion
2676	2676	23 thereof, taking part in the bidding process shall
2677	2677	24 demonstrate to the Agency's satisfaction that the
2678	2678	25 generation facility, or portion thereof, meets the
2679	2679	26 qualifications of a capacity resource as
2680	2680
2681	2681
2682	2682
2683	2683
2684	2684
2685	2685	SB3949 - 74 - LRB103 40603 LNS 73240 b
2686	2686
2687	2687
2688	2688	SB3949- 75 -LRB103 40603 LNS 73240 b SB3949 - 75 - LRB103 40603 LNS 73240 b
2689	2689	SB3949 - 75 - LRB103 40603 LNS 73240 b
2690	2690	1 designated by Midcontinent Independent System
2691	2691	2 Operator, Inc. or PJM Interconnection, LLC, or
2692	2692	3 their successors.
2693	2693	4 (14) Notwithstanding any other provision of
2694	2694	5 law, a contract signed by a winning bidder and the
2695	2695	6 electric utility counterparties may, at the
2696	2696	7 request of the winning bidder, be renegotiated
2697	2697	8 with the Agency to reflect a change in conditions.
2698	2698	9 If the Agency concludes that a proposed amendment
2699	2699	10 to the contract reflects a change in conditions
2700	2700	11 that has occurred since the date of the bid,
2701	2701	12 whether or not such changes were foreseeable, the
2702	2702	13 Agency or the winning bidder shall submit such
2703	2703	14 amendment to the Commission for approval. Upon
2704	2704	15 approval, or approval with modifications, each
2705	2705	16 utility counterparty shall execute the amendment
2706	2706	17 not less than 7 calendar days after delivery by
2707	2707	18 the Agency.
2708	2708	19 (15) Each renewable energy credit contract
2709	2709	20 shall include a force majeure provision that
2710	2710	21 addresses conditions related to the generator and
2711	2711	22 the high voltage direct current transmission
2712	2712	23 facility, including curtailment and dispatch
2713	2713	24 limitations.
2714	2714	25 (16) The owner or operator of a high voltage
2715	2715	26 direct current transmission facility, including a
2716	2716
2717	2717
2718	2718
2719	2719
2720	2720
2721	2721	SB3949 - 75 - LRB103 40603 LNS 73240 b
2722	2722
2723	2723
2724	2724	SB3949- 76 -LRB103 40603 LNS 73240 b SB3949 - 76 - LRB103 40603 LNS 73240 b
2725	2725	SB3949 - 76 - LRB103 40603 LNS 73240 b
2726	2726	1 high voltage direct current transmission facility
2727	2727	2 that is under development, shall, as a condition
2728	2728	3 of qualification or pre-qualification under this
2729	2729	4 item (iii-5), develop and maintain an equity plan.
2730	2730	5 The equity plan shall include:
2731	2731	6 (A) the owner's numeric goals for the
2732	2732	7 diversity composition of its suppliers, with a
2733	2733	8 plan to make at least 10% of expenditures on
2734	2734	9 suppliers to suppliers that are:
2735	2735	10 (i) subcontractors or vendors
2736	2736	11 registered under the Business Enterprise
2737	2737	12 Program or a successor program
2738	2738	13 administered by the Department of Central
2739	2739	14 Management;
2740	2740	15 (ii) subcontractors or vendors owned
2741	2741	16 by minority persons, women, or persons
2742	2742	17 with disability, as defined in Section 2
2743	2743	18 of the Business Enterprise for Minorities,
2744	2744	19 Women, and Persons with Disabilities Act,
2745	2745	20 LGBTQ-owned business enterprises,
2746	2746	21 veteran-owned business enterprises, and
2747	2747	22 business enterprises located in an equity
2748	2748	23 investment eligible community; and
2749	2749	24 (iii) equity eligible contractors;
2750	2750	25 (B) a description of efforts to
2751	2751	26 incentivize a diverse project workforce; and
2752	2752
2753	2753
2754	2754
2755	2755
2756	2756
2757	2757	SB3949 - 76 - LRB103 40603 LNS 73240 b
2758	2758
2759	2759
2760	2760	SB3949- 77 -LRB103 40603 LNS 73240 b SB3949 - 77 - LRB103 40603 LNS 73240 b
2761	2761	SB3949 - 77 - LRB103 40603 LNS 73240 b
2762	2762	1 (C) a community benefits plan that
2763	2763	2 outlines economic and social benefits,
2764	2764	3 including opportunities for investment in
2765	2765	4 communities located along the route of the
2766	2766	5 high voltage direct current transmission line
2767	2767	6 and actions taken to mitigate or reduce any
2768	2768	7 environmental and public health impacts; the
2769	2769	8 community benefits plan may consider donations
2770	2770	9 or grants to community-based organizations
2771	2771	10 serving equity investment eligible
2772	2772	11 communities.
2773	2773	12 Each owner of a pre-qualified high voltage
2774	2774	13 direct current transmission facility with an
2775	2775	14 equity plan shall track expenditures made in
2776	2776	15 accordance with the equity plan and shall report
2777	2777	16 the expenditures to the Commission in compliance
2778	2778	17 with reporting obligations under Section 5-117 of
2779	2779	18 the Public Utilities Act, provided that nothing
2780	2780	19 prohibits the high voltage direct current
2781	2781	20 transmission facility from requesting confidential
2782	2782	21 treatment of information in such report or any
2783	2783	22 supporting evidence.
2784	2784	23 Notwithstanding subsection (c-10) of this
2785	2785	24 Section, the equity plan shall be the exclusive
2786	2786	25 source of obligations related to equity eligible
2787	2787	26 persons and equity eligible contractors related to
2788	2788
2789	2789
2790	2790
2791	2791
2792	2792
2793	2793	SB3949 - 77 - LRB103 40603 LNS 73240 b
2794	2794
2795	2795
2796	2796	SB3949- 78 -LRB103 40603 LNS 73240 b SB3949 - 78 - LRB103 40603 LNS 73240 b
2797	2797	SB3949 - 78 - LRB103 40603 LNS 73240 b
2798	2798	1 the development, construction, or operation of the
2799	2799	2 high voltage direct current transmission line or
2800	2800	3 participating new utility-scale solar or new
2801	2801	4 utility-scale wind project.
2802	2802	5 (iv) Notwithstanding whether the Commission has
2803	2803	6 approved the periodic long-term renewable resources
2804	2804	7 procurement plan revision described in Section
2805	2805	8 16-111.5 of the Public Utilities Act, the Agency shall
2806	2806	9 open capacity for each category in the Adjustable
2807	2807	10 Block program within 90 days after the effective date
2808	2808	11 of this amendatory Act of the 102nd General Assembly
2809	2809	12 manner:
2810	2810	13 (1) The Agency shall open the first block of
2811	2811	14 annual capacity for the category described in item
2812	2812	15 (i) of subparagraph (K) of this paragraph (1). The
2813	2813	16 first block of annual capacity for item (i) shall
2814	2814	17 be for at least 75 megawatts of total nameplate
2815	2815	18 capacity. The price of the renewable energy credit
2816	2816	19 for this block of capacity shall be 4% less than
2817	2817	20 the price of the last open block in this category.
2818	2818	21 Projects on a waitlist shall be awarded contracts
2819	2819	22 first in the order in which they appear on the
2820	2820	23 waitlist. Notwithstanding anything to the
2821	2821	24 contrary, for those renewable energy credits that
2822	2822	25 qualify and are procured under this subitem (1) of
2823	2823	26 this item (iv), the renewable energy credit
2824	2824
2825	2825
2826	2826
2827	2827
2828	2828
2829	2829	SB3949 - 78 - LRB103 40603 LNS 73240 b
2830	2830
2831	2831
2832	2832	SB3949- 79 -LRB103 40603 LNS 73240 b SB3949 - 79 - LRB103 40603 LNS 73240 b
2833	2833	SB3949 - 79 - LRB103 40603 LNS 73240 b
2834	2834	1 delivery contract value shall be paid in full,
2835	2835	2 based on the estimated generation during the first
2836	2836	3 15 years of operation, by the contracting
2837	2837	4 utilities at the time that the facility producing
2838	2838	5 the renewable energy credits is interconnected at
2839	2839	6 the distribution system level of the utility and
2840	2840	7 verified as energized and in compliance by the
2841	2841	8 Program Administrator. The electric utility shall
2842	2842	9 receive and retire all renewable energy credits
2843	2843	10 generated by the project for the first 15 years of
2844	2844	11 operation. Renewable energy credits generated by
2845	2845	12 the project thereafter shall not be transferred
2846	2846	13 under the renewable energy credit delivery
2847	2847	14 contract with the counterparty electric utility.
2848	2848	15 (2) The Agency shall open the first block of
2849	2849	16 annual capacity for the category described in item
2850	2850	17 (ii) of subparagraph (K) of this paragraph (1).
2851	2851	18 The first block of annual capacity for item (ii)
2852	2852	19 shall be for at least 75 megawatts of total
2853	2853	20 nameplate capacity.
2854	2854	21 (A) The price of the renewable energy
2855	2855	22 credit for any project on a waitlist for this
2856	2856	23 category before the opening of this block
2857	2857	24 shall be 4% less than the price of the last
2858	2858	25 open block in this category. Projects on the
2859	2859	26 waitlist shall be awarded contracts first in
2860	2860
2861	2861
2862	2862
2863	2863
2864	2864
2865	2865	SB3949 - 79 - LRB103 40603 LNS 73240 b
2866	2866
2867	2867
2868	2868	SB3949- 80 -LRB103 40603 LNS 73240 b SB3949 - 80 - LRB103 40603 LNS 73240 b
2869	2869	SB3949 - 80 - LRB103 40603 LNS 73240 b
2870	2870	1 the order in which they appear on the
2871	2871	2 waitlist. Any projects that are less than or
2872	2872	3 equal to 25 kilowatts in size on the waitlist
2873	2873	4 for this capacity shall be moved to the
2874	2874	5 waitlist for paragraph (1) of this item (iv).
2875	2875	6 Notwithstanding anything to the contrary,
2876	2876	7 projects that were on the waitlist prior to
2877	2877	8 opening of this block shall not be required to
2878	2878	9 be in compliance with the requirements of
2879	2879	10 subparagraph (Q) of this paragraph (1) of this
2880	2880	11 subsection (c). Notwithstanding anything to
2881	2881	12 the contrary, for those renewable energy
2882	2882	13 credits procured from projects that were on
2883	2883	14 the waitlist for this category before the
2884	2884	15 opening of this block 20% of the renewable
2885	2885	16 energy credit delivery contract value, based
2886	2886	17 on the estimated generation during the first
2887	2887	18 15 years of operation, shall be paid by the
2888	2888	19 contracting utilities at the time that the
2889	2889	20 facility producing the renewable energy
2890	2890	21 credits is interconnected at the distribution
2891	2891	22 system level of the utility and verified as
2892	2892	23 energized by the Program Administrator. The
2893	2893	24 remaining portion shall be paid ratably over
2894	2894	25 the subsequent 4-year period. The electric
2895	2895	26 utility shall receive and retire all renewable
2896	2896
2897	2897
2898	2898
2899	2899
2900	2900
2901	2901	SB3949 - 80 - LRB103 40603 LNS 73240 b
2902	2902
2903	2903
2904	2904	SB3949- 81 -LRB103 40603 LNS 73240 b SB3949 - 81 - LRB103 40603 LNS 73240 b
2905	2905	SB3949 - 81 - LRB103 40603 LNS 73240 b
2906	2906	1 energy credits generated by the project during
2907	2907	2 the first 15 years of operation. Renewable
2908	2908	3 energy credits generated by the project
2909	2909	4 thereafter shall not be transferred under the
2910	2910	5 renewable energy credit delivery contract with
2911	2911	6 the counterparty electric utility.
2912	2912	7 (B) The price of renewable energy credits
2913	2913	8 for any project not on the waitlist for this
2914	2914	9 category before the opening of the block shall
2915	2915	10 be determined and published by the Agency.
2916	2916	11 Projects not on a waitlist as of the opening
2917	2917	12 of this block shall be subject to the
2918	2918	13 requirements of subparagraph (Q) of this
2919	2919	14 paragraph (1), as applicable. Projects not on
2920	2920	15 a waitlist as of the opening of this block
2921	2921	16 shall be subject to the contract provisions
2922	2922	17 outlined in item (iii) of subparagraph (L) of
2923	2923	18 this paragraph (1). The Agency shall strive to
2924	2924	19 publish updated prices and an updated
2925	2925	20 renewable energy credit delivery contract as
2926	2926	21 quickly as possible.
2927	2927	22 (3) For opening the first 2 blocks of annual
2928	2928	23 capacity for projects participating in item (iii)
2929	2929	24 of subparagraph (K) of paragraph (1) of subsection
2930	2930	25 (c), projects shall be selected exclusively from
2931	2931	26 those projects on the ordinal waitlists of
2932	2932
2933	2933
2934	2934
2935	2935
2936	2936
2937	2937	SB3949 - 81 - LRB103 40603 LNS 73240 b
2938	2938
2939	2939
2940	2940	SB3949- 82 -LRB103 40603 LNS 73240 b SB3949 - 82 - LRB103 40603 LNS 73240 b
2941	2941	SB3949 - 82 - LRB103 40603 LNS 73240 b
2942	2942	1 community renewable generation projects
2943	2943	2 established by the Agency based on the status of
2944	2944	3 those ordinal waitlists as of December 31, 2020,
2945	2945	4 and only those projects previously determined to
2946	2946	5 be eligible for the Agency's April 2019 community
2947	2947	6 solar project selection process.
2948	2948	7 The first 2 blocks of annual capacity for item
2949	2949	8 (iii) shall be for 250 megawatts of total
2950	2950	9 nameplate capacity, with both blocks opening
2951	2951	10 simultaneously under the schedule outlined in the
2952	2952	11 paragraphs below. Projects shall be selected as
2953	2953	12 follows:
2954	2954	13 (A) The geographic balance of selected
2955	2955	14 projects shall follow the Group classification
2956	2956	15 found in the Agency's Revised Long-Term
2957	2957	16 Renewable Resources Procurement Plan, with 70%
2958	2958	17 of capacity allocated to projects on the Group
2959	2959	18 B waitlist and 30% of capacity allocated to
2960	2960	19 projects on the Group A waitlist.
2961	2961	20 (B) Contract awards for waitlisted
2962	2962	21 projects shall be allocated proportionate to
2963	2963	22 the total nameplate capacity amount across
2964	2964	23 both ordinal waitlists associated with that
2965	2965	24 applicant firm or its affiliates, subject to
2966	2966	25 the following conditions.
2967	2967	26 (i) Each applicant firm having a
2968	2968
2969	2969
2970	2970
2971	2971
2972	2972
2973	2973	SB3949 - 82 - LRB103 40603 LNS 73240 b
2974	2974
2975	2975
2976	2976	SB3949- 83 -LRB103 40603 LNS 73240 b SB3949 - 83 - LRB103 40603 LNS 73240 b
2977	2977	SB3949 - 83 - LRB103 40603 LNS 73240 b
2978	2978	1 waitlisted project eligible for selection
2979	2979	2 shall receive no less than 500 kilowatts
2980	2980	3 in awarded capacity across all groups, and
2981	2981	4 no approved vendor may receive more than
2982	2982	5 20% of each Group's waitlist allocation.
2983	2983	6 (ii) Each applicant firm, upon
2984	2984	7 receiving an award of program capacity
2985	2985	8 proportionate to its waitlisted capacity,
2986	2986	9 may then determine which waitlisted
2987	2987	10 projects it chooses to be selected for a
2988	2988	11 contract award up to that capacity amount.
2989	2989	12 (iii) Assuming all other program
2990	2990	13 requirements are met, applicant firms may
2991	2991	14 adjust the nameplate capacity of applicant
2992	2992	15 projects without losing waitlist
2993	2993	16 eligibility, so long as no project is
2994	2994	17 greater than 2,000 kilowatts in size.
2995	2995	18 (iv) Assuming all other program
2996	2996	19 requirements are met, applicant firms may
2997	2997	20 adjust the expected production associated
2998	2998	21 with applicant projects, subject to
2999	2999	22 verification by the Program Administrator.
3000	3000	23 (C) After a review of affiliate
3001	3001	24 information and the current ordinal waitlists,
3002	3002	25 the Agency shall announce the nameplate
3003	3003	26 capacity award amounts associated with
3004	3004
3005	3005
3006	3006
3007	3007
3008	3008
3009	3009	SB3949 - 83 - LRB103 40603 LNS 73240 b
3010	3010
3011	3011
3012	3012	SB3949- 84 -LRB103 40603 LNS 73240 b SB3949 - 84 - LRB103 40603 LNS 73240 b
3013	3013	SB3949 - 84 - LRB103 40603 LNS 73240 b
3014	3014	1 applicant firms no later than 90 days after
3015	3015	2 the effective date of this amendatory Act of
3016	3016	3 the 102nd General Assembly.
3017	3017	4 (D) Applicant firms shall submit their
3018	3018	5 portfolio of projects used to satisfy those
3019	3019	6 contract awards no less than 90 days after the
3020	3020	7 Agency's announcement. The total nameplate
3021	3021	8 capacity of all projects used to satisfy that
3022	3022	9 portfolio shall be no greater than the
3023	3023	10 Agency's nameplate capacity award amount
3024	3024	11 associated with that applicant firm. An
3025	3025	12 applicant firm may decline, in whole or in
3026	3026	13 part, its nameplate capacity award without
3027	3027	14 penalty, with such unmet capacity rolled over
3028	3028	15 to the next block opening for project
3029	3029	16 selection under item (iii) of subparagraph (K)
3030	3030	17 of this subsection (c). Any projects not
3031	3031	18 included in an applicant firm's portfolio may
3032	3032	19 reapply without prejudice upon the next block
3033	3033	20 reopening for project selection under item
3034	3034	21 (iii) of subparagraph (K) of this subsection
3035	3035	22 (c).
3036	3036	23 (E) The renewable energy credit delivery
3037	3037	24 contract shall be subject to the contract and
3038	3038	25 payment terms outlined in item (iv) of
3039	3039	26 subparagraph (L) of this subsection (c).
3040	3040
3041	3041
3042	3042
3043	3043
3044	3044
3045	3045	SB3949 - 84 - LRB103 40603 LNS 73240 b
3046	3046
3047	3047
3048	3048	SB3949- 85 -LRB103 40603 LNS 73240 b SB3949 - 85 - LRB103 40603 LNS 73240 b
3049	3049	SB3949 - 85 - LRB103 40603 LNS 73240 b
3050	3050	1 Contract instruments used for this
3051	3051	2 subparagraph shall contain the following
3052	3052	3 terms:
3053	3053	4 (i) Renewable energy credit prices
3054	3054	5 shall be fixed, without further adjustment
3055	3055	6 under any other provision of this Act or
3056	3056	7 for any other reason, at 10% lower than
3057	3057	8 prices applicable to the last open block
3058	3058	9 for this category, inclusive of any adders
3059	3059	10 available for achieving a minimum of 50%
3060	3060	11 of subscribers to the project's nameplate
3061	3061	12 capacity being residential or small
3062	3062	13 commercial customers with subscriptions of
3063	3063	14 below 25 kilowatts in size;
3064	3064	15 (ii) A requirement that a minimum of
3065	3065	16 50% of subscribers to the project's
3066	3066	17 nameplate capacity be residential or small
3067	3067	18 commercial customers with subscriptions of
3068	3068	19 below 25 kilowatts in size;
3069	3069	20 (iii) Permission for the ability of a
3070	3070	21 contract holder to substitute projects
3071	3071	22 with other waitlisted projects without
3072	3072	23 penalty should a project receive a
3073	3073	24 non-binding estimate of costs to construct
3074	3074	25 the interconnection facilities and any
3075	3075	26 required distribution upgrades associated
3076	3076
3077	3077
3078	3078
3079	3079
3080	3080
3081	3081	SB3949 - 85 - LRB103 40603 LNS 73240 b
3082	3082
3083	3083
3084	3084	SB3949- 86 -LRB103 40603 LNS 73240 b SB3949 - 86 - LRB103 40603 LNS 73240 b
3085	3085	SB3949 - 86 - LRB103 40603 LNS 73240 b
3086	3086	1 with that project of greater than 30 cents
3087	3087	2 per watt AC of that project's nameplate
3088	3088	3 capacity. In developing the applicable
3089	3089	4 contract instrument, the Agency may
3090	3090	5 consider whether other circumstances
3091	3091	6 outside of the control of the applicant
3092	3092	7 firm should also warrant project
3093	3093	8 substitution rights.
3094	3094	9 The Agency shall publish a finalized
3095	3095	10 updated renewable energy credit delivery
3096	3096	11 contract developed consistent with these terms
3097	3097	12 and conditions no less than 30 days before
3098	3098	13 applicant firms must submit their portfolio of
3099	3099	14 projects pursuant to item (D).
3100	3100	15 (F) To be eligible for an award, the
3101	3101	16 applicant firm shall certify that not less
3102	3102	17 than prevailing wage, as determined pursuant
3103	3103	18 to the Illinois Prevailing Wage Act, was or
3104	3104	19 will be paid to employees who are engaged in
3105	3105	20 construction activities associated with a
3106	3106	21 selected project.
3107	3107	22 (4) The Agency shall open the first block of
3108	3108	23 annual capacity for the category described in item
3109	3109	24 (iv) of subparagraph (K) of this paragraph (1).
3110	3110	25 The first block of annual capacity for item (iv)
3111	3111	26 shall be for at least 50 megawatts of total
3112	3112
3113	3113
3114	3114
3115	3115
3116	3116
3117	3117	SB3949 - 86 - LRB103 40603 LNS 73240 b
3118	3118
3119	3119
3120	3120	SB3949- 87 -LRB103 40603 LNS 73240 b SB3949 - 87 - LRB103 40603 LNS 73240 b
3121	3121	SB3949 - 87 - LRB103 40603 LNS 73240 b
3122	3122	1 nameplate capacity. Renewable energy credit prices
3123	3123	2 shall be fixed, without further adjustment under
3124	3124	3 any other provision of this Act or for any other
3125	3125	4 reason, at the price in the last open block in the
3126	3126	5 category described in item (ii) of subparagraph
3127	3127	6 (K) of this paragraph (1). Pricing for future
3128	3128	7 blocks of annual capacity for this category may be
3129	3129	8 adjusted in the Agency's second revision to its
3130	3130	9 Long-Term Renewable Resources Procurement Plan.
3131	3131	10 Projects in this category shall be subject to the
3132	3132	11 contract terms outlined in item (iv) of
3133	3133	12 subparagraph (L) of this paragraph (1).
3134	3134	13 (5) The Agency shall open the equivalent of 2
3135	3135	14 years of annual capacity for the category
3136	3136	15 described in item (v) of subparagraph (K) of this
3137	3137	16 paragraph (1). The first block of annual capacity
3138	3138	17 for item (v) shall be for at least 10 megawatts of
3139	3139	18 total nameplate capacity. Notwithstanding the
3140	3140	19 provisions of item (v) of subparagraph (K) of this
3141	3141	20 paragraph (1), for the purpose of this initial
3142	3142	21 block, the agency shall accept new project
3143	3143	22 applications intended to increase the diversity of
3144	3144	23 areas hosting community solar projects, the
3145	3145	24 business models of projects, and the size of
3146	3146	25 projects, as described by the Agency in its
3147	3147	26 long-term renewable resources procurement plan
3148	3148
3149	3149
3150	3150
3151	3151
3152	3152
3153	3153	SB3949 - 87 - LRB103 40603 LNS 73240 b
3154	3154
3155	3155
3156	3156	SB3949- 88 -LRB103 40603 LNS 73240 b SB3949 - 88 - LRB103 40603 LNS 73240 b
3157	3157	SB3949 - 88 - LRB103 40603 LNS 73240 b
3158	3158	1 that is approved as of the effective date of this
3159	3159	2 amendatory Act of the 102nd General Assembly.
3160	3160	3 Projects in this category shall be subject to the
3161	3161	4 contract terms outlined in item (iii) of
3162	3162	5 subsection (L) of this paragraph (1).
3163	3163	6 (6) The Agency shall open the first blocks of
3164	3164	7 annual capacity for the category described in item
3165	3165	8 (vi) of subparagraph (K) of this paragraph (1),
3166	3166	9 with allocations of capacity within the block
3167	3167	10 generally matching the historical share of block
3168	3168	11 capacity allocated between the category described
3169	3169	12 in items (i) and (ii) of subparagraph (K) of this
3170	3170	13 paragraph (1). The first two blocks of annual
3171	3171	14 capacity for item (vi) shall be for at least 75
3172	3172	15 megawatts of total nameplate capacity. The price
3173	3173	16 of renewable energy credits for the blocks of
3174	3174	17 capacity shall be 4% less than the price of the
3175	3175	18 last open blocks in the categories described in
3176	3176	19 items (i) and (ii) of subparagraph (K) of this
3177	3177	20 paragraph (1). Pricing for future blocks of annual
3178	3178	21 capacity for this category may be adjusted in the
3179	3179	22 Agency's second revision to its Long-Term
3180	3180	23 Renewable Resources Procurement Plan. Projects in
3181	3181	24 this category shall be subject to the applicable
3182	3182	25 contract terms outlined in items (ii) and (iii) of
3183	3183	26 subparagraph (L) of this paragraph (1).
3184	3184
3185	3185
3186	3186
3187	3187
3188	3188
3189	3189	SB3949 - 88 - LRB103 40603 LNS 73240 b
3190	3190
3191	3191
3192	3192	SB3949- 89 -LRB103 40603 LNS 73240 b SB3949 - 89 - LRB103 40603 LNS 73240 b
3193	3193	SB3949 - 89 - LRB103 40603 LNS 73240 b
3194	3194	1 (v) Upon the effective date of this amendatory Act
3195	3195	2 of the 102nd General Assembly, for all competitive
3196	3196	3 procurements and any procurements of renewable energy
3197	3197	4 credit from new utility-scale wind and new
3198	3198	5 utility-scale photovoltaic projects, the Agency shall
3199	3199	6 procure indexed renewable energy credits and direct
3200	3200	7 respondents to offer a strike price.
3201	3201	8 (1) The purchase price of the indexed
3202	3202	9 renewable energy credit payment shall be
3203	3203	10 calculated for each settlement period. That
3204	3204	11 payment, for any settlement period, shall be equal
3205	3205	12 to the difference resulting from subtracting the
3206	3206	13 strike price from the index price for that
3207	3207	14 settlement period. If this difference results in a
3208	3208	15 negative number, the indexed REC counterparty
3209	3209	16 shall owe the seller the absolute value multiplied
3210	3210	17 by the quantity of energy produced in the relevant
3211	3211	18 settlement period. If this difference results in a
3212	3212	19 positive number, the seller shall owe the indexed
3213	3213	20 REC counterparty this amount multiplied by the
3214	3214	21 quantity of energy produced in the relevant
3215	3215	22 settlement period.
3216	3216	23 (2) Parties shall cash settle every month,
3217	3217	24 summing up all settlements (both positive and
3218	3218	25 negative, if applicable) for the prior month.
3219	3219	26 (3) To ensure funding in the annual budget
3220	3220
3221	3221
3222	3222
3223	3223
3224	3224
3225	3225	SB3949 - 89 - LRB103 40603 LNS 73240 b
3226	3226
3227	3227
3228	3228	SB3949- 90 -LRB103 40603 LNS 73240 b SB3949 - 90 - LRB103 40603 LNS 73240 b
3229	3229	SB3949 - 90 - LRB103 40603 LNS 73240 b
3230	3230	1 established under subparagraph (E) for indexed
3231	3231	2 renewable energy credit procurements for each year
3232	3232	3 of the term of such contracts, which must have a
3233	3233	4 minimum tenure of 20 calendar years, the
3234	3234	5 procurement administrator, Agency, Commission
3235	3235	6 staff, and procurement monitor shall quantify the
3236	3236	7 annual cost of the contract by utilizing an
3237	3237	8 industry-standard, third-party forward price curve
3238	3238	9 for energy at the appropriate hub or load zone,
3239	3239	10 including the estimated magnitude and timing of
3240	3240	11 the price effects related to federal carbon
3241	3241	12 controls. Each forward price curve shall contain a
3242	3242	13 specific value of the forecasted market price of
3243	3243	14 electricity for each annual delivery year of the
3244	3244	15 contract. For procurement planning purposes, the
3245	3245	16 impact on the annual budget for the cost of
3246	3246	17 indexed renewable energy credits for each delivery
3247	3247	18 year shall be determined as the expected annual
3248	3248	19 contract expenditure for that year, equaling the
3249	3249	20 difference between (i) the sum across all relevant
3250	3250	21 contracts of the applicable strike price
3251	3251	22 multiplied by contract quantity and (ii) the sum
3252	3252	23 across all relevant contracts of the forward price
3253	3253	24 curve for the applicable load zone for that year
3254	3254	25 multiplied by contract quantity. The contracting
3255	3255	26 utility shall not assume an obligation in excess
3256	3256
3257	3257
3258	3258
3259	3259
3260	3260
3261	3261	SB3949 - 90 - LRB103 40603 LNS 73240 b
3262	3262
3263	3263
3264	3264	SB3949- 91 -LRB103 40603 LNS 73240 b SB3949 - 91 - LRB103 40603 LNS 73240 b
3265	3265	SB3949 - 91 - LRB103 40603 LNS 73240 b
3266	3266	1 of the estimated annual cost of the contracts for
3267	3267	2 indexed renewable energy credits. Forward curves
3268	3268	3 shall be revised on an annual basis as updated
3269	3269	4 forward price curves are released and filed with
3270	3270	5 the Commission in the proceeding approving the
3271	3271	6 Agency's most recent long-term renewable resources
3272	3272	7 procurement plan. If the expected contract spend
3273	3273	8 is higher or lower than the total quantity of
3274	3274	9 contracts multiplied by the forward price curve
3275	3275	10 value for that year, the forward price curve shall
3276	3276	11 be updated by the procurement administrator, in
3277	3277	12 consultation with the Agency, Commission staff,
3278	3278	13 and procurement monitors, using then-currently
3279	3279	14 available price forecast data and additional
3280	3280	15 budget dollars shall be obligated or reobligated
3281	3281	16 as appropriate.
3282	3282	17 (4) To ensure that indexed renewable energy
3283	3283	18 credit prices remain predictable and affordable,
3284	3284	19 the Agency may consider the institution of a price
3285	3285	20 collar on REC prices paid under indexed renewable
3286	3286	21 energy credit procurements establishing floor and
3287	3287	22 ceiling REC prices applicable to indexed REC
3288	3288	23 contract prices. Any price collars applicable to
3289	3289	24 indexed REC procurements shall be proposed by the
3290	3290	25 Agency through its long-term renewable resources
3291	3291	26 procurement plan.
3292	3292
3293	3293
3294	3294
3295	3295
3296	3296
3297	3297	SB3949 - 91 - LRB103 40603 LNS 73240 b
3298	3298
3299	3299
3300	3300	SB3949- 92 -LRB103 40603 LNS 73240 b SB3949 - 92 - LRB103 40603 LNS 73240 b
3301	3301	SB3949 - 92 - LRB103 40603 LNS 73240 b
3302	3302	1 (vi) All procurements under this subparagraph (G),
3303	3303	2 including the procurement of renewable energy credits
3304	3304	3 from hydropower facilities, shall comply with the
3305	3305	4 geographic requirements in subparagraph (I) of this
3306	3306	5 paragraph (1) and shall follow the procurement
3307	3307	6 processes and procedures described in this Section and
3308	3308	7 Section 16-111.5 of the Public Utilities Act to the
3309	3309	8 extent practicable, and these processes and procedures
3310	3310	9 may be expedited to accommodate the schedule
3311	3311	10 established by this subparagraph (G).
3312	3312	11 (vii) On and after the effective date of this
3313	3313	12 amendatory Act of the 103rd General Assembly, for all
3314	3314	13 procurements of renewable energy credits from
3315	3315	14 hydropower facilities, the Agency shall establish
3316	3316	15 contract terms designed to optimize existing
3317	3317	16 hydropower facilities through modernization or
3318	3318	17 retooling and establish new hydropower facilities at
3319	3319	18 existing dams. Procurements made under this item (vii)
3320	3320	19 shall prioritize projects located in designated
3321	3321	20 environmental justice communities, as defined in
3322	3322	21 subsection (b) of Section 1-56 of this Act, or in
3323	3323	22 projects located in units of local government with
3324	3324	23 median incomes that do not exceed 82% of the median
3325	3325	24 income of the State.
3326	3326	25 (H) The procurement of renewable energy resources for
3327	3327	26 a given delivery year shall be reduced as described in
3328	3328
3329	3329
3330	3330
3331	3331
3332	3332
3333	3333	SB3949 - 92 - LRB103 40603 LNS 73240 b
3334	3334
3335	3335
3336	3336	SB3949- 93 -LRB103 40603 LNS 73240 b SB3949 - 93 - LRB103 40603 LNS 73240 b
3337	3337	SB3949 - 93 - LRB103 40603 LNS 73240 b
3338	3338	1 this subparagraph (H) if an alternative retail electric
3339	3339	2 supplier meets the requirements described in this
3340	3340	3 subparagraph (H).
3341	3341	4 (i) Within 45 days after June 1, 2017 (the
3342	3342	5 effective date of Public Act 99-906), an alternative
3343	3343	6 retail electric supplier or its successor shall submit
3344	3344	7 an informational filing to the Illinois Commerce
3345	3345	8 Commission certifying that, as of December 31, 2015,
3346	3346	9 the alternative retail electric supplier owned one or
3347	3347	10 more electric generating facilities that generates
3348	3348	11 renewable energy resources as defined in Section 1-10
3349	3349	12 of this Act, provided that such facilities are not
3350	3350	13 powered by wind or photovoltaics, and the facilities
3351	3351	14 generate one renewable energy credit for each megawatt
3352	3352	15 hour megawatthour of energy produced from the
3353	3353	16 facility.
3354	3354	17 The informational filing shall identify each
3355	3355	18 facility that was eligible to satisfy the alternative
3356	3356	19 retail electric supplier's obligations under Section
3357	3357	20 16-115D of the Public Utilities Act as described in
3358	3358	21 this item (i).
3359	3359	22 (ii) For a given delivery year, the alternative
3360	3360	23 retail electric supplier may elect to supply its
3361	3361	24 retail customers with renewable energy credits from
3362	3362	25 the facility or facilities described in item (i) of
3363	3363	26 this subparagraph (H) that continue to be owned by the
3364	3364
3365	3365
3366	3366
3367	3367
3368	3368
3369	3369	SB3949 - 93 - LRB103 40603 LNS 73240 b
3370	3370
3371	3371
3372	3372	SB3949- 94 -LRB103 40603 LNS 73240 b SB3949 - 94 - LRB103 40603 LNS 73240 b
3373	3373	SB3949 - 94 - LRB103 40603 LNS 73240 b
3374	3374	1 alternative retail electric supplier.
3375	3375	2 (iii) The alternative retail electric supplier
3376	3376	3 shall notify the Agency and the applicable utility, no
3377	3377	4 later than February 28 of the year preceding the
3378	3378	5 applicable delivery year or 15 days after June 1, 2017
3379	3379	6 (the effective date of Public Act 99-906), whichever
3380	3380	7 is later, of its election under item (ii) of this
3381	3381	8 subparagraph (H) to supply renewable energy credits to
3382	3382	9 retail customers of the utility. Such election shall
3383	3383	10 identify the amount of renewable energy credits to be
3384	3384	11 supplied by the alternative retail electric supplier
3385	3385	12 to the utility's retail customers and the source of
3386	3386	13 the renewable energy credits identified in the
3387	3387	14 informational filing as described in item (i) of this
3388	3388	15 subparagraph (H), subject to the following
3389	3389	16 limitations:
3390	3390	17 For the delivery year beginning June 1, 2018,
3391	3391	18 the maximum amount of renewable energy credits to
3392	3392	19 be supplied by an alternative retail electric
3393	3393	20 supplier under this subparagraph (H) shall be 68%
3394	3394	21 multiplied by 25% multiplied by 14.5% multiplied
3395	3395	22 by the amount of metered electricity
3396	3396	23 (megawatt-hours) delivered by the alternative
3397	3397	24 retail electric supplier to Illinois retail
3398	3398	25 customers during the delivery year ending May 31,
3399	3399	26 2016.
3400	3400
3401	3401
3402	3402
3403	3403
3404	3404
3405	3405	SB3949 - 94 - LRB103 40603 LNS 73240 b
3406	3406
3407	3407
3408	3408	SB3949- 95 -LRB103 40603 LNS 73240 b SB3949 - 95 - LRB103 40603 LNS 73240 b
3409	3409	SB3949 - 95 - LRB103 40603 LNS 73240 b
3410	3410	1 For delivery years beginning June 1, 2019 and
3411	3411	2 each year thereafter, the maximum amount of
3412	3412	3 renewable energy credits to be supplied by an
3413	3413	4 alternative retail electric supplier under this
3414	3414	5 subparagraph (H) shall be 68% multiplied by 50%
3415	3415	6 multiplied by 16% multiplied by the amount of
3416	3416	7 metered electricity (megawatt-hours) delivered by
3417	3417	8 the alternative retail electric supplier to
3418	3418	9 Illinois retail customers during the delivery year
3419	3419	10 ending May 31, 2016, provided that the 16% value
3420	3420	11 shall increase by 1.5% each delivery year
3421	3421	12 thereafter to 25% by the delivery year beginning
3422	3422	13 June 1, 2025, and thereafter the 25% value shall
3423	3423	14 apply to each delivery year.
3424	3424	15 For each delivery year, the total amount of
3425	3425	16 renewable energy credits supplied by all alternative
3426	3426	17 retail electric suppliers under this subparagraph (H)
3427	3427	18 shall not exceed 9% of the Illinois target renewable
3428	3428	19 energy credit quantity. The Illinois target renewable
3429	3429	20 energy credit quantity for the delivery year beginning
3430	3430	21 June 1, 2018 is 14.5% multiplied by the total amount of
3431	3431	22 metered electricity (megawatt-hours) delivered in the
3432	3432	23 delivery year immediately preceding that delivery
3433	3433	24 year, provided that the 14.5% shall increase by 1.5%
3434	3434	25 each delivery year thereafter to 25% by the delivery
3435	3435	26 year beginning June 1, 2025, and thereafter the 25%
3436	3436
3437	3437
3438	3438
3439	3439
3440	3440
3441	3441	SB3949 - 95 - LRB103 40603 LNS 73240 b
3442	3442
3443	3443
3444	3444	SB3949- 96 -LRB103 40603 LNS 73240 b SB3949 - 96 - LRB103 40603 LNS 73240 b
3445	3445	SB3949 - 96 - LRB103 40603 LNS 73240 b
3446	3446	1 value shall apply to each delivery year.
3447	3447	2 If the requirements set forth in items (i) through
3448	3448	3 (iii) of this subparagraph (H) are met, the charges
3449	3449	4 that would otherwise be applicable to the retail
3450	3450	5 customers of the alternative retail electric supplier
3451	3451	6 under paragraph (6) of this subsection (c) for the
3452	3452	7 applicable delivery year shall be reduced by the ratio
3453	3453	8 of the quantity of renewable energy credits supplied
3454	3454	9 by the alternative retail electric supplier compared
3455	3455	10 to that supplier's target renewable energy credit
3456	3456	11 quantity. The supplier's target renewable energy
3457	3457	12 credit quantity for the delivery year beginning June
3458	3458	13 1, 2018 is 14.5% multiplied by the total amount of
3459	3459	14 metered electricity (megawatt-hours) delivered by the
3460	3460	15 alternative retail supplier in that delivery year,
3461	3461	16 provided that the 14.5% shall increase by 1.5% each
3462	3462	17 delivery year thereafter to 25% by the delivery year
3463	3463	18 beginning June 1, 2025, and thereafter the 25% value
3464	3464	19 shall apply to each delivery year.
3465	3465	20 On or before April 1 of each year, the Agency shall
3466	3466	21 annually publish a report on its website that
3467	3467	22 identifies the aggregate amount of renewable energy
3468	3468	23 credits supplied by alternative retail electric
3469	3469	24 suppliers under this subparagraph (H).
3470	3470	25 (I) The Agency shall design its long-term renewable
3471	3471	26 energy procurement plan to maximize the State's interest
3472	3472
3473	3473
3474	3474
3475	3475
3476	3476
3477	3477	SB3949 - 96 - LRB103 40603 LNS 73240 b
3478	3478
3479	3479
3480	3480	SB3949- 97 -LRB103 40603 LNS 73240 b SB3949 - 97 - LRB103 40603 LNS 73240 b
3481	3481	SB3949 - 97 - LRB103 40603 LNS 73240 b
3482	3482	1 in the health, safety, and welfare of its residents,
3483	3483	2 including but not limited to minimizing sulfur dioxide,
3484	3484	3 nitrogen oxide, particulate matter and other pollution
3485	3485	4 that adversely affects public health in this State,
3486	3486	5 increasing fuel and resource diversity in this State,
3487	3487	6 enhancing the reliability and resiliency of the
3488	3488	7 electricity distribution system in this State, meeting
3489	3489	8 goals to limit carbon dioxide emissions under federal or
3490	3490	9 State law, and contributing to a cleaner and healthier
3491	3491	10 environment for the citizens of this State. In order to
3492	3492	11 further these legislative purposes, renewable energy
3493	3493	12 credits shall be eligible to be counted toward the
3494	3494	13 renewable energy requirements of this subsection (c) if
3495	3495	14 they are generated from facilities located in this State.
3496	3496	15 The Agency may qualify renewable energy credits from
3497	3497	16 facilities located in states adjacent to Illinois or
3498	3498	17 renewable energy credits associated with the electricity
3499	3499	18 generated by a utility-scale wind energy facility or
3500	3500	19 utility-scale photovoltaic facility and transmitted by a
3501	3501	20 qualifying direct current project described in subsection
3502	3502	21 (b-5) of Section 8-406 of the Public Utilities Act to a
3503	3503	22 delivery point on the electric transmission grid located
3504	3504	23 in this State or a state adjacent to Illinois, if the
3505	3505	24 generator demonstrates and the Agency determines that the
3506	3506	25 operation of such facility or facilities will help promote
3507	3507	26 the State's interest in the health, safety, and welfare of
3508	3508
3509	3509
3510	3510
3511	3511
3512	3512
3513	3513	SB3949 - 97 - LRB103 40603 LNS 73240 b
3514	3514
3515	3515
3516	3516	SB3949- 98 -LRB103 40603 LNS 73240 b SB3949 - 98 - LRB103 40603 LNS 73240 b
3517	3517	SB3949 - 98 - LRB103 40603 LNS 73240 b
3518	3518	1 its residents based on the public interest criteria
3519	3519	2 described above. For the purposes of this Section,
3520	3520	3 renewable resources that are delivered via a high voltage
3521	3521	4 direct current transmission facilities converter station
3522	3522	5 located in Illinois shall be deemed generated in Illinois
3523	3523	6 or an adjacent state at the time and location the energy is
3524	3524	7 converted to alternating current by the high voltage
3525	3525	8 direct current transmission facilities converter station
3526	3526	9 if the high voltage direct current transmission line:
3527	3527	10 (i) after the effective date of this amendatory
3528	3528	11 Act of the 103rd 102nd General Assembly, will be was
3529	3529	12 constructed with a project labor agreement;
3530	3530	13 (ii) is capable of transmitting electricity at 525
3531	3531	14 kilovolts or above 525kv;
3532	3532	15 (iii) has a an Illinois converter station located
3533	3533	16 within or and interconnected with in the region of the
3534	3534	17 PJM Interconnection, LLC, or Midcontinent Independent
3535	3535	18 System Operator, Inc.; and (iv) does not operate as a
3536	3536	19 public utility; and (v) if the high voltage direct
3537	3537	20 current transmission line
3538	3538	21 (iv) was energized after June 1, 2023.
3539	3539	22 To ensure that the public interest criteria are applied to
3540	3540	23 the procurement and given full effect, the Agency's long-term
3541	3541	24 procurement plan shall describe in detail how each public
3542	3542	25 interest factor shall be considered and weighted for
3543	3543	26 facilities located in states adjacent to Illinois.
3544	3544
3545	3545
3546	3546
3547	3547
3548	3548
3549	3549	SB3949 - 98 - LRB103 40603 LNS 73240 b
3550	3550
3551	3551
3552	3552	SB3949- 99 -LRB103 40603 LNS 73240 b SB3949 - 99 - LRB103 40603 LNS 73240 b
3553	3553	SB3949 - 99 - LRB103 40603 LNS 73240 b
3554	3554	1 (J) In order to promote the competitive development of
3555	3555	2 renewable energy resources in furtherance of the State's
3556	3556	3 interest in the health, safety, and welfare of its
3557	3557	4 residents, renewable energy credits shall not be eligible
3558	3558	5 to be counted toward the renewable energy requirements of
3559	3559	6 this subsection (c) if they are sourced from a generating
3560	3560	7 unit whose costs were being recovered through rates
3561	3561	8 regulated by this State or any other state or states on or
3562	3562	9 after January 1, 2017. Each contract executed to purchase
3563	3563	10 renewable energy credits under this subsection (c) shall
3564	3564	11 provide for the contract's termination if the costs of the
3565	3565	12 generating unit supplying the renewable energy credits
3566	3566	13 subsequently begin to be recovered through rates regulated
3567	3567	14 by this State or any other state or states; and each
3568	3568	15 contract shall further provide that, in that event, the
3569	3569	16 supplier of the credits must return 110% of all payments
3570	3570	17 received under the contract. Amounts returned under the
3571	3571	18 requirements of this subparagraph (J) shall be retained by
3572	3572	19 the utility and all of these amounts shall be used for the
3573	3573	20 procurement of additional renewable energy credits from
3574	3574	21 new wind or new photovoltaic resources as defined in this
3575	3575	22 subsection (c). The long-term plan shall provide that
3576	3576	23 these renewable energy credits shall be procured in the
3577	3577	24 next procurement event.
3578	3578	25 Notwithstanding the limitations of this subparagraph
3579	3579	26 (J), renewable energy credits sourced from generating
3580	3580
3581	3581
3582	3582
3583	3583
3584	3584
3585	3585	SB3949 - 99 - LRB103 40603 LNS 73240 b
3586	3586
3587	3587
3588	3588	SB3949- 100 -LRB103 40603 LNS 73240 b SB3949 - 100 - LRB103 40603 LNS 73240 b
3589	3589	SB3949 - 100 - LRB103 40603 LNS 73240 b
3590	3590	1 units that are constructed, purchased, owned, or leased by
3591	3591	2 an electric utility as part of an approved project,
3592	3592	3 program, or pilot under Section 1-56 of this Act shall be
3593	3593	4 eligible to be counted toward the renewable energy
3594	3594	5 requirements of this subsection (c), regardless of how the
3595	3595	6 costs of these units are recovered. As long as a
3596	3596	7 generating unit or an identifiable portion of a generating
3597	3597	8 unit has not had and does not have its costs recovered
3598	3598	9 through rates regulated by this State or any other state,
3599	3599	10 HVDC renewable energy credits associated with that
3600	3600	11 generating unit or identifiable portion thereof shall be
3601	3601	12 eligible to be counted toward the renewable energy
3602	3602	13 requirements of this subsection (c). If a generation
3603	3603	14 facility does not have its costs recovered through rates
3604	3604	15 regulated by this State or any other state, the high
3605	3605	16 voltage direct current renewable energy credits generated
3606	3606	17 by that generation facility are eligible to be counted
3607	3607	18 toward the renewable energy requirements of this
3608	3608	19 subsection without regard to cost recovery for the
3609	3609	20 associated high voltage direct current transmission
3610	3610	21 facilities.
3611	3611	22 (K) The long-term renewable resources procurement plan
3612	3612	23 developed by the Agency in accordance with subparagraph
3613	3613	24 (A) of this paragraph (1) shall include an Adjustable
3614	3614	25 Block program for the procurement of renewable energy
3615	3615	26 credits from new photovoltaic projects that are
3616	3616
3617	3617
3618	3618
3619	3619
3620	3620
3621	3621	SB3949 - 100 - LRB103 40603 LNS 73240 b
3622	3622
3623	3623
3624	3624	SB3949- 101 -LRB103 40603 LNS 73240 b SB3949 - 101 - LRB103 40603 LNS 73240 b
3625	3625	SB3949 - 101 - LRB103 40603 LNS 73240 b
3626	3626	1 distributed renewable energy generation devices or new
3627	3627	2 photovoltaic community renewable generation projects. The
3628	3628	3 Adjustable Block program shall be generally designed to
3629	3629	4 provide for the steady, predictable, and sustainable
3630	3630	5 growth of new solar photovoltaic development in Illinois.
3631	3631	6 To this end, the Adjustable Block program shall provide a
3632	3632	7 transparent annual schedule of prices and quantities to
3633	3633	8 enable the photovoltaic market to scale up and for
3634	3634	9 renewable energy credit prices to adjust at a predictable
3635	3635	10 rate over time. The prices set by the Adjustable Block
3636	3636	11 program can be reflected as a set value or as the product
3637	3637	12 of a formula.
3638	3638	13 The Adjustable Block program shall include for each
3639	3639	14 category of eligible projects for each delivery year: a
3640	3640	15 single block of nameplate capacity, a price for renewable
3641	3641	16 energy credits within that block, and the terms and
3642	3642	17 conditions for securing a spot on a waitlist once the
3643	3643	18 block is fully committed or reserved. Except as outlined
3644	3644	19 below, the waitlist of projects in a given year will carry
3645	3645	20 over to apply to the subsequent year when another block is
3646	3646	21 opened. Only projects energized on or after June 1, 2017
3647	3647	22 shall be eligible for the Adjustable Block program. For
3648	3648	23 each category for each delivery year the Agency shall
3649	3649	24 determine the amount of generation capacity in each block,
3650	3650	25 and the purchase price for each block, provided that the
3651	3651	26 purchase price provided and the total amount of generation
3652	3652
3653	3653
3654	3654
3655	3655
3656	3656
3657	3657	SB3949 - 101 - LRB103 40603 LNS 73240 b
3658	3658
3659	3659
3660	3660	SB3949- 102 -LRB103 40603 LNS 73240 b SB3949 - 102 - LRB103 40603 LNS 73240 b
3661	3661	SB3949 - 102 - LRB103 40603 LNS 73240 b
3662	3662	1 in all blocks for all categories shall be sufficient to
3663	3663	2 meet the goals in this subsection (c). The Agency shall
3664	3664	3 strive to issue a single block sized to provide for
3665	3665	4 stability and market growth. The Agency shall establish
3666	3666	5 program eligibility requirements that ensure that projects
3667	3667	6 that enter the program are sufficiently mature to indicate
3668	3668	7 a demonstrable path to completion. The Agency may
3669	3669	8 periodically review its prior decisions establishing the
3670	3670	9 amount of generation capacity in each block, and the
3671	3671	10 purchase price for each block, and may propose, on an
3672	3672	11 expedited basis, changes to these previously set values,
3673	3673	12 including but not limited to redistributing these amounts
3674	3674	13 and the available funds as necessary and appropriate,
3675	3675	14 subject to Commission approval as part of the periodic
3676	3676	15 plan revision process described in Section 16-111.5 of the
3677	3677	16 Public Utilities Act. The Agency may define different
3678	3678	17 block sizes, purchase prices, or other distinct terms and
3679	3679	18 conditions for projects located in different utility
3680	3680	19 service territories if the Agency deems it necessary to
3681	3681	20 meet the goals in this subsection (c).
3682	3682	21 The Adjustable Block program shall include the
3683	3683	22 following categories in at least the following amounts:
3684	3684	23 (i) At least 20% from distributed renewable energy
3685	3685	24 generation devices with a nameplate capacity of no
3686	3686	25 more than 25 kilowatts.
3687	3687	26 (ii) At least 20% from distributed renewable
3688	3688
3689	3689
3690	3690
3691	3691
3692	3692
3693	3693	SB3949 - 102 - LRB103 40603 LNS 73240 b
3694	3694
3695	3695
3696	3696	SB3949- 103 -LRB103 40603 LNS 73240 b SB3949 - 103 - LRB103 40603 LNS 73240 b
3697	3697	SB3949 - 103 - LRB103 40603 LNS 73240 b
3698	3698	1 energy generation devices with a nameplate capacity of
3699	3699	2 more than 25 kilowatts and no more than 5,000
3700	3700	3 kilowatts. The Agency may create sub-categories within
3701	3701	4 this category to account for the differences between
3702	3702	5 projects for small commercial customers, large
3703	3703	6 commercial customers, and public or non-profit
3704	3704	7 customers.
3705	3705	8 (iii) At least 30% from photovoltaic community
3706	3706	9 renewable generation projects. Capacity for this
3707	3707	10 category for the first 2 delivery years after the
3708	3708	11 effective date of this amendatory Act of the 102nd
3709	3709	12 General Assembly shall be allocated to waitlist
3710	3710	13 projects as provided in paragraph (3) of item (iv) of
3711	3711	14 subparagraph (G). Starting in the third delivery year
3712	3712	15 after the effective date of this amendatory Act of the
3713	3713	16 102nd General Assembly or earlier if the Agency
3714	3714	17 determines there is additional capacity needed for to
3715	3715	18 meet previous delivery year requirements, the
3716	3716	19 following shall apply:
3717	3717	20 (1) the Agency shall select projects on a
3718	3718	21 first-come, first-serve basis, however the Agency
3719	3719	22 may suggest additional methods to prioritize
3720	3720	23 projects that are submitted at the same time;
3721	3721	24 (2) projects shall have subscriptions of 25 kW
3722	3722	25 or less for at least 50% of the facility's
3723	3723	26 nameplate capacity and the Agency shall price the
3724	3724
3725	3725
3726	3726
3727	3727
3728	3728
3729	3729	SB3949 - 103 - LRB103 40603 LNS 73240 b
3730	3730
3731	3731
3732	3732	SB3949- 104 -LRB103 40603 LNS 73240 b SB3949 - 104 - LRB103 40603 LNS 73240 b
3733	3733	SB3949 - 104 - LRB103 40603 LNS 73240 b
3734	3734	1 renewable energy credits with that as a factor;
3735	3735	2 (3) projects shall not be colocated with one
3736	3736	3 or more other community renewable generation
3737	3737	4 projects, as defined in the Agency's first revised
3738	3738	5 long-term renewable resources procurement plan
3739	3739	6 approved by the Commission on February 18, 2020,
3740	3740	7 such that the aggregate nameplate capacity exceeds
3741	3741	8 5,000 kilowatts; and
3742	3742	9 (4) projects greater than 2 MW may not apply
3743	3743	10 until after the approval of the Agency's revised
3744	3744	11 Long-Term Renewable Resources Procurement Plan
3745	3745	12 after the effective date of this amendatory Act of
3746	3746	13 the 102nd General Assembly.
3747	3747	14 (iv) At least 15% from distributed renewable
3748	3748	15 generation devices or photovoltaic community renewable
3749	3749	16 generation projects installed on public school land.
3750	3750	17 The Agency may create subcategories within this
3751	3751	18 category to account for the differences between
3752	3752	19 project size or location. Projects located within
3753	3753	20 environmental justice communities or within
3754	3754	21 Organizational Units that fall within Tier 1 or Tier 2
3755	3755	22 shall be given priority. Each of the Agency's periodic
3756	3756	23 updates to its long-term renewable resources
3757	3757	24 procurement plan to incorporate the procurement
3758	3758	25 described in this subparagraph (iv) shall also include
3759	3759	26 the proposed quantities or blocks, pricing, and
3760	3760
3761	3761
3762	3762
3763	3763
3764	3764
3765	3765	SB3949 - 104 - LRB103 40603 LNS 73240 b
3766	3766
3767	3767
3768	3768	SB3949- 105 -LRB103 40603 LNS 73240 b SB3949 - 105 - LRB103 40603 LNS 73240 b
3769	3769	SB3949 - 105 - LRB103 40603 LNS 73240 b
3770	3770	1 contract terms applicable to the procurement as
3771	3771	2 indicated herein. In each such update and procurement,
3772	3772	3 the Agency shall set the renewable energy credit price
3773	3773	4 and establish payment terms for the renewable energy
3774	3774	5 credits procured pursuant to this subparagraph (iv)
3775	3775	6 that make it feasible and affordable for public
3776	3776	7 schools to install photovoltaic distributed renewable
3777	3777	8 energy devices on their premises, including, but not
3778	3778	9 limited to, those public schools subject to the
3779	3779	10 prioritization provisions of this subparagraph. For
3780	3780	11 the purposes of this item (iv):
3781	3781	12 "Environmental Justice Community" shall have the
3782	3782	13 same meaning set forth in the Agency's long-term
3783	3783	14 renewable resources procurement plan;
3784	3784	15 "Organization Unit", "Tier 1" and "Tier 2" shall
3785	3785	16 have the meanings set for in Section 18-8.15 of the
3786	3786	17 School Code;
3787	3787	18 "Public schools" shall have the meaning set forth
3788	3788	19 in Section 1-3 of the School Code and includes public
3789	3789	20 institutions of higher education, as defined in the
3790	3790	21 Board of Higher Education Act.
3791	3791	22 (v) At least 5% from community-driven community
3792	3792	23 solar projects intended to provide more direct and
3793	3793	24 tangible connection and benefits to the communities
3794	3794	25 which they serve or in which they operate and,
3795	3795	26 additionally, to increase the variety of community
3796	3796
3797	3797
3798	3798
3799	3799
3800	3800
3801	3801	SB3949 - 105 - LRB103 40603 LNS 73240 b
3802	3802
3803	3803
3804	3804	SB3949- 106 -LRB103 40603 LNS 73240 b SB3949 - 106 - LRB103 40603 LNS 73240 b
3805	3805	SB3949 - 106 - LRB103 40603 LNS 73240 b
3806	3806	1 solar locations, models, and options in Illinois. As
3807	3807	2 part of its long-term renewable resources procurement
3808	3808	3 plan, the Agency shall develop selection criteria for
3809	3809	4 projects participating in this category. Nothing in
3810	3810	5 this Section shall preclude the Agency from creating a
3811	3811	6 selection process that maximizes community ownership
3812	3812	7 and community benefits in selecting projects to
3813	3813	8 receive renewable energy credits. Selection criteria
3814	3814	9 shall include:
3815	3815	10 (1) community ownership or community
3816	3816	11 wealth-building;
3817	3817	12 (2) additional direct and indirect community
3818	3818	13 benefit, beyond project participation as a
3819	3819	14 subscriber, including, but not limited to,
3820	3820	15 economic, environmental, social, cultural, and
3821	3821	16 physical benefits;
3822	3822	17 (3) meaningful involvement in project
3823	3823	18 organization and development by community members
3824	3824	19 or nonprofit organizations or public entities
3825	3825	20 located in or serving the community;
3826	3826	21 (4) engagement in project operations and
3827	3827	22 management by nonprofit organizations, public
3828	3828	23 entities, or community members; and
3829	3829	24 (5) whether a project is developed in response
3830	3830	25 to a site-specific RFP developed by community
3831	3831	26 members or a nonprofit organization or public
3832	3832
3833	3833
3834	3834
3835	3835
3836	3836
3837	3837	SB3949 - 106 - LRB103 40603 LNS 73240 b
3838	3838
3839	3839
3840	3840	SB3949- 107 -LRB103 40603 LNS 73240 b SB3949 - 107 - LRB103 40603 LNS 73240 b
3841	3841	SB3949 - 107 - LRB103 40603 LNS 73240 b
3842	3842	1 entity located in or serving the community.
3843	3843	2 Selection criteria may also prioritize projects
3844	3844	3 that:
3845	3845	4 (1) are developed in collaboration with or to
3846	3846	5 provide complementary opportunities for the Clean
3847	3847	6 Jobs Workforce Network Program, the Illinois
3848	3848	7 Climate Works Preapprenticeship Program, the
3849	3849	8 Returning Residents Clean Jobs Training Program,
3850	3850	9 the Clean Energy Contractor Incubator Program, or
3851	3851	10 the Clean Energy Primes Contractor Accelerator
3852	3852	11 Program;
3853	3853	12 (2) increase the diversity of locations of
3854	3854	13 community solar projects in Illinois, including by
3855	3855	14 locating in urban areas and population centers;
3856	3856	15 (3) are located in Equity Investment Eligible
3857	3857	16 Communities;
3858	3858	17 (4) are not greenfield projects;
3859	3859	18 (5) serve only local subscribers;
3860	3860	19 (6) have a nameplate capacity that does not
3861	3861	20 exceed 500 kW;
3862	3862	21 (7) are developed by an equity eligible
3863	3863	22 contractor; or
3864	3864	23 (8) otherwise meaningfully advance the goals
3865	3865	24 of providing more direct and tangible connection
3866	3866	25 and benefits to the communities which they serve
3867	3867	26 or in which they operate and increasing the
3868	3868
3869	3869
3870	3870
3871	3871
3872	3872
3873	3873	SB3949 - 107 - LRB103 40603 LNS 73240 b
3874	3874
3875	3875
3876	3876	SB3949- 108 -LRB103 40603 LNS 73240 b SB3949 - 108 - LRB103 40603 LNS 73240 b
3877	3877	SB3949 - 108 - LRB103 40603 LNS 73240 b
3878	3878	1 variety of community solar locations, models, and
3879	3879	2 options in Illinois.
3880	3880	3 For the purposes of this item (v):
3881	3881	4 "Community" means a social unit in which people
3882	3882	5 come together regularly to effect change; a social
3883	3883	6 unit in which participants are marked by a cooperative
3884	3884	7 spirit, a common purpose, or shared interests or
3885	3885	8 characteristics; or a space understood by its
3886	3886	9 residents to be delineated through geographic
3887	3887	10 boundaries or landmarks.
3888	3888	11 "Community benefit" means a range of services and
3889	3889	12 activities that provide affirmative, economic,
3890	3890	13 environmental, social, cultural, or physical value to
3891	3891	14 a community; or a mechanism that enables economic
3892	3892	15 development, high-quality employment, and education
3893	3893	16 opportunities for local workers and residents, or
3894	3894	17 formal monitoring and oversight structures such that
3895	3895	18 community members may ensure that those services and
3896	3896	19 activities respond to local knowledge and needs.
3897	3897	20 "Community ownership" means an arrangement in
3898	3898	21 which an electric generating facility is, or over time
3899	3899	22 will be, in significant part, owned collectively by
3900	3900	23 members of the community to which an electric
3901	3901	24 generating facility provides benefits; members of that
3902	3902	25 community participate in decisions regarding the
3903	3903	26 governance, operation, maintenance, and upgrades of
3904	3904
3905	3905
3906	3906
3907	3907
3908	3908
3909	3909	SB3949 - 108 - LRB103 40603 LNS 73240 b
3910	3910
3911	3911
3912	3912	SB3949- 109 -LRB103 40603 LNS 73240 b SB3949 - 109 - LRB103 40603 LNS 73240 b
3913	3913	SB3949 - 109 - LRB103 40603 LNS 73240 b
3914	3914	1 and to that facility; and members of that community
3915	3915	2 benefit from regular use of that facility.
3916	3916	3 Terms and guidance within these criteria that are
3917	3917	4 not defined in this item (v) shall be defined by the
3918	3918	5 Agency, with stakeholder input, during the development
3919	3919	6 of the Agency's long-term renewable resources
3920	3920	7 procurement plan. The Agency shall develop regular
3921	3921	8 opportunities for projects to submit applications for
3922	3922	9 projects under this category, and develop selection
3923	3923	10 criteria that gives preference to projects that better
3924	3924	11 meet individual criteria as well as projects that
3925	3925	12 address a higher number of criteria.
3926	3926	13 (vi) At least 10% from distributed renewable
3927	3927	14 energy generation devices, which includes distributed
3928	3928	15 renewable energy devices with a nameplate capacity
3929	3929	16 under 5,000 kilowatts or photovoltaic community
3930	3930	17 renewable generation projects, from applicants that
3931	3931	18 are equity eligible contractors. The Agency may create
3932	3932	19 subcategories within this category to account for the
3933	3933	20 differences between project size and type. The Agency
3934	3934	21 shall propose to increase the percentage in this item
3935	3935	22 (vi) over time to 40% based on factors, including, but
3936	3936	23 not limited to, the number of equity eligible
3937	3937	24 contractors and capacity used in this item (vi) in
3938	3938	25 previous delivery years.
3939	3939	26 The Agency shall propose a payment structure for
3940	3940
3941	3941
3942	3942
3943	3943
3944	3944
3945	3945	SB3949 - 109 - LRB103 40603 LNS 73240 b
3946	3946
3947	3947
3948	3948	SB3949- 110 -LRB103 40603 LNS 73240 b SB3949 - 110 - LRB103 40603 LNS 73240 b
3949	3949	SB3949 - 110 - LRB103 40603 LNS 73240 b
3950	3950	1 contracts executed pursuant to this paragraph under
3951	3951	2 which, upon a demonstration of qualification or need,
3952	3952	3 applicant firms are advanced capital disbursed after
3953	3953	4 contract execution but before the contracted project's
3954	3954	5 energization. The amount or percentage of capital
3955	3955	6 advanced prior to project energization shall be
3956	3956	7 sufficient to both cover any increase in development
3957	3957	8 costs resulting from prevailing wage requirements or
3958	3958	9 project-labor agreements, and designed to overcome
3959	3959	10 barriers in access to capital faced by equity eligible
3960	3960	11 contractors. The amount or percentage of advanced
3961	3961	12 capital may vary by subcategory within this category
3962	3962	13 and by an applicant's demonstration of need, with such
3963	3963	14 levels to be established through the Long-Term
3964	3964	15 Renewable Resources Procurement Plan authorized under
3965	3965	16 subparagraph (A) of paragraph (1) of subsection (c) of
3966	3966	17 this Section.
3967	3967	18 Contracts developed featuring capital advanced
3968	3968	19 prior to a project's energization shall feature
3969	3969	20 provisions to ensure both the successful development
3970	3970	21 of applicant projects and the delivery of the
3971	3971	22 renewable energy credits for the full term of the
3972	3972	23 contract, including ongoing collateral requirements
3973	3973	24 and other provisions deemed necessary by the Agency,
3974	3974	25 and may include energization timelines longer than for
3975	3975	26 comparable project types. The percentage or amount of
3976	3976
3977	3977
3978	3978
3979	3979
3980	3980
3981	3981	SB3949 - 110 - LRB103 40603 LNS 73240 b
3982	3982
3983	3983
3984	3984	SB3949- 111 -LRB103 40603 LNS 73240 b SB3949 - 111 - LRB103 40603 LNS 73240 b
3985	3985	SB3949 - 111 - LRB103 40603 LNS 73240 b
3986	3986	1 capital advanced prior to project energization shall
3987	3987	2 not operate to increase the overall contract value,
3988	3988	3 however contracts executed under this subparagraph may
3989	3989	4 feature renewable energy credit prices higher than
3990	3990	5 those offered to similar projects participating in
3991	3991	6 other categories. Capital advanced prior to
3992	3992	7 energization shall serve to reduce the ratable
3993	3993	8 payments made after energization under items (ii) and
3994	3994	9 (iii) of subparagraph (L) or payments made for each
3995	3995	10 renewable energy credit delivery under item (iv) of
3996	3996	11 subparagraph (L).
3997	3997	12 (vii) The remaining capacity shall be allocated by
3998	3998	13 the Agency in order to respond to market demand. The
3999	3999	14 Agency shall allocate any discretionary capacity prior
4000	4000	15 to the beginning of each delivery year.
4001	4001	16 To the extent there is uncontracted capacity from any
4002	4002	17 block in any of categories (i) through (vi) at the end of a
4003	4003	18 delivery year, the Agency shall redistribute that capacity
4004	4004	19 to one or more other categories giving priority to
4005	4005	20 categories with projects on a waitlist. The redistributed
4006	4006	21 capacity shall be added to the annual capacity in the
4007	4007	22 subsequent delivery year, and the price for renewable
4008	4008	23 energy credits shall be the price for the new delivery
4009	4009	24 year. Redistributed capacity shall not be considered
4010	4010	25 redistributed when determining whether the goals in this
4011	4011	26 subsection (K) have been met.
4012	4012
4013	4013
4014	4014
4015	4015
4016	4016
4017	4017	SB3949 - 111 - LRB103 40603 LNS 73240 b
4018	4018
4019	4019
4020	4020	SB3949- 112 -LRB103 40603 LNS 73240 b SB3949 - 112 - LRB103 40603 LNS 73240 b
4021	4021	SB3949 - 112 - LRB103 40603 LNS 73240 b
4022	4022	1 Notwithstanding anything to the contrary, as the
4023	4023	2 Agency increases the capacity in item (vi) to 40% over
4024	4024	3 time, the Agency may reduce the capacity of items (i)
4025	4025	4 through (v) proportionate to the capacity of the
4026	4026	5 categories of projects in item (vi), to achieve a balance
4027	4027	6 of project types.
4028	4028	7 The Adjustable Block program shall be designed to
4029	4029	8 ensure that renewable energy credits are procured from
4030	4030	9 projects in diverse locations and are not concentrated in
4031	4031	10 a few regional areas.
4032	4032	11 (L) Notwithstanding provisions for advancing capital
4033	4033	12 prior to project energization found in item (vi) of
4034	4034	13 subparagraph (K), the procurement of photovoltaic
4035	4035	14 renewable energy credits under items (i) through (vi) of
4036	4036	15 subparagraph (K) of this paragraph (1) shall otherwise be
4037	4037	16 subject to the following contract and payment terms:
4038	4038	17 (i) (Blank).
4039	4039	18 (ii) For those renewable energy credits that
4040	4040	19 qualify and are procured under item (i) of
4041	4041	20 subparagraph (K) of this paragraph (1), and any
4042	4042	21 similar category projects that are procured under item
4043	4043	22 (vi) of subparagraph (K) of this paragraph (1) that
4044	4044	23 qualify and are procured under item (vi), the contract
4045	4045	24 length shall be 15 years. The renewable energy credit
4046	4046	25 delivery contract value shall be paid in full, based
4047	4047	26 on the estimated generation during the first 15 years
4048	4048
4049	4049
4050	4050
4051	4051
4052	4052
4053	4053	SB3949 - 112 - LRB103 40603 LNS 73240 b
4054	4054
4055	4055
4056	4056	SB3949- 113 -LRB103 40603 LNS 73240 b SB3949 - 113 - LRB103 40603 LNS 73240 b
4057	4057	SB3949 - 113 - LRB103 40603 LNS 73240 b
4058	4058	1 of operation, by the contracting utilities at the time
4059	4059	2 that the facility producing the renewable energy
4060	4060	3 credits is interconnected at the distribution system
4061	4061	4 level of the utility and verified as energized and
4062	4062	5 compliant by the Program Administrator. The electric
4063	4063	6 utility shall receive and retire all renewable energy
4064	4064	7 credits generated by the project for the first 15
4065	4065	8 years of operation. Renewable energy credits generated
4066	4066	9 by the project thereafter shall not be transferred
4067	4067	10 under the renewable energy credit delivery contract
4068	4068	11 with the counterparty electric utility.
4069	4069	12 (iii) For those renewable energy credits that
4070	4070	13 qualify and are procured under item (ii) and (v) of
4071	4071	14 subparagraph (K) of this paragraph (1) and any like
4072	4072	15 projects similar category that qualify and are
4073	4073	16 procured under item (vi), the contract length shall be
4074	4074	17 15 years. 15% of the renewable energy credit delivery
4075	4075	18 contract value, based on the estimated generation
4076	4076	19 during the first 15 years of operation, shall be paid
4077	4077	20 by the contracting utilities at the time that the
4078	4078	21 facility producing the renewable energy credits is
4079	4079	22 interconnected at the distribution system level of the
4080	4080	23 utility and verified as energized and compliant by the
4081	4081	24 Program Administrator. The remaining portion shall be
4082	4082	25 paid ratably over the subsequent 6-year period. The
4083	4083	26 electric utility shall receive and retire all
4084	4084
4085	4085
4086	4086
4087	4087
4088	4088
4089	4089	SB3949 - 113 - LRB103 40603 LNS 73240 b
4090	4090
4091	4091
4092	4092	SB3949- 114 -LRB103 40603 LNS 73240 b SB3949 - 114 - LRB103 40603 LNS 73240 b
4093	4093	SB3949 - 114 - LRB103 40603 LNS 73240 b
4094	4094	1 renewable energy credits generated by the project for
4095	4095	2 the first 15 years of operation. Renewable energy
4096	4096	3 credits generated by the project thereafter shall not
4097	4097	4 be transferred under the renewable energy credit
4098	4098	5 delivery contract with the counterparty electric
4099	4099	6 utility.
4100	4100	7 (iv) For those renewable energy credits that
4101	4101	8 qualify and are procured under items (iii) and (iv) of
4102	4102	9 subparagraph (K) of this paragraph (1), and any like
4103	4103	10 projects that qualify and are procured under item
4104	4104	11 (vi), the renewable energy credit delivery contract
4105	4105	12 length shall be 20 years and shall be paid over the
4106	4106	13 delivery term, not to exceed during each delivery year
4107	4107	14 the contract price multiplied by the estimated annual
4108	4108	15 renewable energy credit generation amount. If
4109	4109	16 generation of renewable energy credits during a
4110	4110	17 delivery year exceeds the estimated annual generation
4111	4111	18 amount, the excess renewable energy credits shall be
4112	4112	19 carried forward to future delivery years and shall not
4113	4113	20 expire during the delivery term. If generation of
4114	4114	21 renewable energy credits during a delivery year,
4115	4115	22 including carried forward excess renewable energy
4116	4116	23 credits, if any, is less than the estimated annual
4117	4117	24 generation amount, payments during such delivery year
4118	4118	25 will not exceed the quantity generated plus the
4119	4119	26 quantity carried forward multiplied by the contract
4120	4120
4121	4121
4122	4122
4123	4123
4124	4124
4125	4125	SB3949 - 114 - LRB103 40603 LNS 73240 b
4126	4126
4127	4127
4128	4128	SB3949- 115 -LRB103 40603 LNS 73240 b SB3949 - 115 - LRB103 40603 LNS 73240 b
4129	4129	SB3949 - 115 - LRB103 40603 LNS 73240 b
4130	4130	1 price. The electric utility shall receive all
4131	4131	2 renewable energy credits generated by the project
4132	4132	3 during the first 20 years of operation and retire all
4133	4133	4 renewable energy credits paid for under this item (iv)
4134	4134	5 and return at the end of the delivery term all
4135	4135	6 renewable energy credits that were not paid for.
4136	4136	7 Renewable energy credits generated by the project
4137	4137	8 thereafter shall not be transferred under the
4138	4138	9 renewable energy credit delivery contract with the
4139	4139	10 counterparty electric utility. Notwithstanding the
4140	4140	11 preceding, for those projects participating under item
4141	4141	12 (iii) of subparagraph (K), the contract price for a
4142	4142	13 delivery year shall be based on subscription levels as
4143	4143	14 measured on the higher of the first business day of the
4144	4144	15 delivery year or the first business day 6 months after
4145	4145	16 the first business day of the delivery year.
4146	4146	17 Subscription of 90% of nameplate capacity or greater
4147	4147	18 shall be deemed to be fully subscribed for the
4148	4148	19 purposes of this item (iv). For projects receiving a
4149	4149	20 20-year delivery contract, REC prices shall be
4150	4150	21 adjusted downward for consistency with the incentive
4151	4151	22 levels previously determined to be necessary to
4152	4152	23 support projects under 15-year delivery contracts,
4153	4153	24 taking into consideration any additional new
4154	4154	25 requirements placed on the projects, including, but
4155	4155	26 not limited to, labor standards.
4156	4156
4157	4157
4158	4158
4159	4159
4160	4160
4161	4161	SB3949 - 115 - LRB103 40603 LNS 73240 b
4162	4162
4163	4163
4164	4164	SB3949- 116 -LRB103 40603 LNS 73240 b SB3949 - 116 - LRB103 40603 LNS 73240 b
4165	4165	SB3949 - 116 - LRB103 40603 LNS 73240 b
4166	4166	1 (v) Each contract shall include provisions to
4167	4167	2 ensure the delivery of the estimated quantity of
4168	4168	3 renewable energy credits and ongoing collateral
4169	4169	4 requirements and other provisions deemed appropriate
4170	4170	5 by the Agency.
4171	4171	6 (vi) The utility shall be the counterparty to the
4172	4172	7 contracts executed under this subparagraph (L) that
4173	4173	8 are approved by the Commission under the process
4174	4174	9 described in Section 16-111.5 of the Public Utilities
4175	4175	10 Act. No contract shall be executed for an amount that
4176	4176	11 is less than one renewable energy credit per year.
4177	4177	12 (vii) If, at any time, approved applications for
4178	4178	13 the Adjustable Block program exceed funds collected by
4179	4179	14 the electric utility or would cause the Agency to
4180	4180	15 exceed the limitation described in subparagraph (E) of
4181	4181	16 this paragraph (1) on the amount of renewable energy
4182	4182	17 resources that may be procured, then the Agency may
4183	4183	18 consider future uncommitted funds to be reserved for
4184	4184	19 these contracts on a first-come, first-served basis.
4185	4185	20 (viii) Nothing in this Section shall require the
4186	4186	21 utility to advance any payment or pay any amounts that
4187	4187	22 exceed the actual amount of revenues anticipated to be
4188	4188	23 collected by the utility under paragraph (6) of this
4189	4189	24 subsection (c) and subsection (k) of Section 16-108 of
4190	4190	25 the Public Utilities Act inclusive of eligible funds
4191	4191	26 collected in prior years and alternative compliance
4192	4192
4193	4193
4194	4194
4195	4195
4196	4196
4197	4197	SB3949 - 116 - LRB103 40603 LNS 73240 b
4198	4198
4199	4199
4200	4200	SB3949- 117 -LRB103 40603 LNS 73240 b SB3949 - 117 - LRB103 40603 LNS 73240 b
4201	4201	SB3949 - 117 - LRB103 40603 LNS 73240 b
4202	4202	1 payments for use by the utility, and contracts
4203	4203	2 executed under this Section shall expressly
4204	4204	3 incorporate this limitation.
4205	4205	4 (ix) Notwithstanding other requirements of this
4206	4206	5 subparagraph (L), no modification shall be required to
4207	4207	6 Adjustable Block program contracts if they were
4208	4208	7 already executed prior to the establishment, approval,
4209	4209	8 and implementation of new contract forms as a result
4210	4210	9 of this amendatory Act of the 102nd General Assembly.
4211	4211	10 (x) Contracts may be assignable, but only to
4212	4212	11 entities first deemed by the Agency to have met
4213	4213	12 program terms and requirements applicable to direct
4214	4214	13 program participation. In developing contracts for the
4215	4215	14 delivery of renewable energy credits, the Agency shall
4216	4216	15 be permitted to establish fees applicable to each
4217	4217	16 contract assignment.
4218	4218	17 (M) The Agency shall be authorized to retain one or
4219	4219	18 more experts or expert consulting firms to develop,
4220	4220	19 administer, implement, operate, and evaluate the
4221	4221	20 Adjustable Block program described in subparagraph (K) of
4222	4222	21 this paragraph (1), and the Agency shall retain the
4223	4223	22 consultant or consultants in the same manner, to the
4224	4224	23 extent practicable, as the Agency retains others to
4225	4225	24 administer provisions of this Act, including, but not
4226	4226	25 limited to, the procurement administrator. The selection
4227	4227	26 of experts and expert consulting firms and the procurement
4228	4228
4229	4229
4230	4230
4231	4231
4232	4232
4233	4233	SB3949 - 117 - LRB103 40603 LNS 73240 b
4234	4234
4235	4235
4236	4236	SB3949- 118 -LRB103 40603 LNS 73240 b SB3949 - 118 - LRB103 40603 LNS 73240 b
4237	4237	SB3949 - 118 - LRB103 40603 LNS 73240 b
4238	4238	1 process described in this subparagraph (M) are exempt from
4239	4239	2 the requirements of Section 20-10 of the Illinois
4240	4240	3 Procurement Code, under Section 20-10 of that Code. The
4241	4241	4 Agency shall strive to minimize administrative expenses in
4242	4242	5 the implementation of the Adjustable Block program.
4243	4243	6 The Program Administrator may charge application fees
4244	4244	7 to participating firms to cover the cost of program
4245	4245	8 administration. Any application fee amounts shall
4246	4246	9 initially be determined through the long-term renewable
4247	4247	10 resources procurement plan, and modifications to any
4248	4248	11 application fee that deviate more than 25% from the
4249	4249	12 Commission's approved value must be approved by the
4250	4250	13 Commission as a long-term plan revision under Section
4251	4251	14 16-111.5 of the Public Utilities Act. The Agency shall
4252	4252	15 consider stakeholder feedback when making adjustments to
4253	4253	16 application fees and shall notify stakeholders in advance
4254	4254	17 of any planned changes.
4255	4255	18 In addition to covering the costs of program
4256	4256	19 administration, the Agency, in conjunction with its
4257	4257	20 Program Administrator, may also use the proceeds of such
4258	4258	21 fees charged to participating firms to support public
4259	4259	22 education and ongoing regional and national coordination
4260	4260	23 with nonprofit organizations, public bodies, and others
4261	4261	24 engaged in the implementation of renewable energy
4262	4262	25 incentive programs or similar initiatives. This work may
4263	4263	26 include developing papers and reports, hosting regional
4264	4264
4265	4265
4266	4266
4267	4267
4268	4268
4269	4269	SB3949 - 118 - LRB103 40603 LNS 73240 b
4270	4270
4271	4271
4272	4272	SB3949- 119 -LRB103 40603 LNS 73240 b SB3949 - 119 - LRB103 40603 LNS 73240 b
4273	4273	SB3949 - 119 - LRB103 40603 LNS 73240 b
4274	4274	1 and national conferences, and other work deemed necessary
4275	4275	2 by the Agency to position the State of Illinois as a
4276	4276	3 national leader in renewable energy incentive program
4277	4277	4 development and administration.
4278	4278	5 The Agency and its consultant or consultants shall
4279	4279	6 monitor block activity, share program activity with
4280	4280	7 stakeholders and conduct quarterly meetings to discuss
4281	4281	8 program activity and market conditions. If necessary, the
4282	4282	9 Agency may make prospective administrative adjustments to
4283	4283	10 the Adjustable Block program design, such as making
4284	4284	11 adjustments to purchase prices as necessary to achieve the
4285	4285	12 goals of this subsection (c). Program modifications to any
4286	4286	13 block price that do not deviate from the Commission's
4287	4287	14 approved value by more than 10% shall take effect
4288	4288	15 immediately and are not subject to Commission review and
4289	4289	16 approval. Program modifications to any block price that
4290	4290	17 deviate more than 10% from the Commission's approved value
4291	4291	18 must be approved by the Commission as a long-term plan
4292	4292	19 amendment under Section 16-111.5 of the Public Utilities
4293	4293	20 Act. The Agency shall consider stakeholder feedback when
4294	4294	21 making adjustments to the Adjustable Block design and
4295	4295	22 shall notify stakeholders in advance of any planned
4296	4296	23 changes.
4297	4297	24 The Agency and its program administrators for both the
4298	4298	25 Adjustable Block program and the Illinois Solar for All
4299	4299	26 Program, consistent with the requirements of this
4300	4300
4301	4301
4302	4302
4303	4303
4304	4304
4305	4305	SB3949 - 119 - LRB103 40603 LNS 73240 b
4306	4306
4307	4307
4308	4308	SB3949- 120 -LRB103 40603 LNS 73240 b SB3949 - 120 - LRB103 40603 LNS 73240 b
4309	4309	SB3949 - 120 - LRB103 40603 LNS 73240 b
4310	4310	1 subsection (c) and subsection (b) of Section 1-56 of this
4311	4311	2 Act, shall propose the Adjustable Block program terms,
4312	4312	3 conditions, and requirements, including the prices to be
4313	4313	4 paid for renewable energy credits, where applicable, and
4314	4314	5 requirements applicable to participating entities and
4315	4315	6 project applications, through the development, review, and
4316	4316	7 approval of the Agency's long-term renewable resources
4317	4317	8 procurement plan described in this subsection (c) and
4318	4318	9 paragraph (5) of subsection (b) of Section 16-111.5 of the
4319	4319	10 Public Utilities Act. Terms, conditions, and requirements
4320	4320	11 for program participation shall include the following:
4321	4321	12 (i) The Agency shall establish a registration
4322	4322	13 process for entities seeking to qualify for
4323	4323	14 program-administered incentive funding and establish
4324	4324	15 baseline qualifications for vendor approval. The
4325	4325	16 Agency must maintain a list of approved entities on
4326	4326	17 each program's website, and may revoke a vendor's
4327	4327	18 ability to receive program-administered incentive
4328	4328	19 funding status upon a determination that the vendor
4329	4329	20 failed to comply with contract terms, the law, or
4330	4330	21 other program requirements.
4331	4331	22 (ii) The Agency shall establish program
4332	4332	23 requirements and minimum contract terms to ensure
4333	4333	24 projects are properly installed and produce their
4334	4334	25 expected amounts of energy. Program requirements may
4335	4335	26 include on-site inspections and photo documentation of
4336	4336
4337	4337
4338	4338
4339	4339
4340	4340
4341	4341	SB3949 - 120 - LRB103 40603 LNS 73240 b
4342	4342
4343	4343
4344	4344	SB3949- 121 -LRB103 40603 LNS 73240 b SB3949 - 121 - LRB103 40603 LNS 73240 b
4345	4345	SB3949 - 121 - LRB103 40603 LNS 73240 b
4346	4346	1 projects under construction. The Agency may require
4347	4347	2 repairs, alterations, or additions to remedy any
4348	4348	3 material deficiencies discovered. Vendors who have a
4349	4349	4 disproportionately high number of deficient systems
4350	4350	5 may lose their eligibility to continue to receive
4351	4351	6 State-administered incentive funding through Agency
4352	4352	7 programs and procurements.
4353	4353	8 (iii) To discourage deceptive marketing or other
4354	4354	9 bad faith business practices, the Agency may require
4355	4355	10 direct program participants, including agents
4356	4356	11 operating on their behalf, to provide standardized
4357	4357	12 disclosures to a customer prior to that customer's
4358	4358	13 execution of a contract for the development of a
4359	4359	14 distributed generation system or a subscription to a
4360	4360	15 community solar project.
4361	4361	16 (iv) The Agency shall establish one or multiple
4362	4362	17 Consumer Complaints Centers to accept complaints
4363	4363	18 regarding businesses that participate in, or otherwise
4364	4364	19 benefit from, State-administered incentive funding
4365	4365	20 through Agency-administered programs. The Agency shall
4366	4366	21 maintain a public database of complaints with any
4367	4367	22 confidential or particularly sensitive information
4368	4368	23 redacted from public entries.
4369	4369	24 (v) Through a filing in the proceeding for the
4370	4370	25 approval of its long-term renewable energy resources
4371	4371	26 procurement plan, the Agency shall provide an annual
4372	4372
4373	4373
4374	4374
4375	4375
4376	4376
4377	4377	SB3949 - 121 - LRB103 40603 LNS 73240 b
4378	4378
4379	4379
4380	4380	SB3949- 122 -LRB103 40603 LNS 73240 b SB3949 - 122 - LRB103 40603 LNS 73240 b
4381	4381	SB3949 - 122 - LRB103 40603 LNS 73240 b
4382	4382	1 written report to the Illinois Commerce Commission
4383	4383	2 documenting the frequency and nature of complaints and
4384	4384	3 any enforcement actions taken in response to those
4385	4385	4 complaints.
4386	4386	5 (vi) The Agency shall schedule regular meetings
4387	4387	6 with representatives of the Office of the Attorney
4388	4388	7 General, the Illinois Commerce Commission, consumer
4389	4389	8 protection groups, and other interested stakeholders
4390	4390	9 to share relevant information about consumer
4391	4391	10 protection, project compliance, and complaints
4392	4392	11 received.
4393	4393	12 (vii) To the extent that complaints received
4394	4394	13 implicate the jurisdiction of the Office of the
4395	4395	14 Attorney General, the Illinois Commerce Commission, or
4396	4396	15 local, State, or federal law enforcement, the Agency
4397	4397	16 shall also refer complaints to those entities as
4398	4398	17 appropriate.
4399	4399	18 (N) The Agency shall establish the terms, conditions,
4400	4400	19 and program requirements for photovoltaic community
4401	4401	20 renewable generation projects with a goal to expand access
4402	4402	21 to a broader group of energy consumers, to ensure robust
4403	4403	22 participation opportunities for residential and small
4404	4404	23 commercial customers and those who cannot install
4405	4405	24 renewable energy on their own properties. Subject to
4406	4406	25 reasonable limitations, any plan approved by the
4407	4407	26 Commission shall allow subscriptions to community
4408	4408
4409	4409
4410	4410
4411	4411
4412	4412
4413	4413	SB3949 - 122 - LRB103 40603 LNS 73240 b
4414	4414
4415	4415
4416	4416	SB3949- 123 -LRB103 40603 LNS 73240 b SB3949 - 123 - LRB103 40603 LNS 73240 b
4417	4417	SB3949 - 123 - LRB103 40603 LNS 73240 b
4418	4418	1 renewable generation projects to be portable and
4419	4419	2 transferable. For purposes of this subparagraph (N),
4420	4420	3 "portable" means that subscriptions may be retained by the
4421	4421	4 subscriber even if the subscriber relocates or changes its
4422	4422	5 address within the same utility service territory; and
4423	4423	6 "transferable" means that a subscriber may assign or sell
4424	4424	7 subscriptions to another person within the same utility
4425	4425	8 service territory.
4426	4426	9 Through the development of its long-term renewable
4427	4427	10 resources procurement plan, the Agency may consider
4428	4428	11 whether community renewable generation projects utilizing
4429	4429	12 technologies other than photovoltaics should be supported
4430	4430	13 through State-administered incentive funding, and may
4431	4431	14 issue requests for information to gauge market demand.
4432	4432	15 Electric utilities shall provide a monetary credit to
4433	4433	16 a subscriber's subsequent bill for service for the
4434	4434	17 proportional output of a community renewable generation
4435	4435	18 project attributable to that subscriber as specified in
4436	4436	19 Section 16-107.5 of the Public Utilities Act.
4437	4437	20 The Agency shall purchase renewable energy credits
4438	4438	21 from subscribed shares of photovoltaic community renewable
4439	4439	22 generation projects through the Adjustable Block program
4440	4440	23 described in subparagraph (K) of this paragraph (1) or
4441	4441	24 through the Illinois Solar for All Program described in
4442	4442	25 Section 1-56 of this Act. The electric utility shall
4443	4443	26 purchase any unsubscribed energy from community renewable
4444	4444
4445	4445
4446	4446
4447	4447
4448	4448
4449	4449	SB3949 - 123 - LRB103 40603 LNS 73240 b
4450	4450
4451	4451
4452	4452	SB3949- 124 -LRB103 40603 LNS 73240 b SB3949 - 124 - LRB103 40603 LNS 73240 b
4453	4453	SB3949 - 124 - LRB103 40603 LNS 73240 b
4454	4454	1 generation projects that are Qualifying Facilities ("QF")
4455	4455	2 under the electric utility's tariff for purchasing the
4456	4456	3 output from QFs under Public Utilities Regulatory Policies
4457	4457	4 Act of 1978.
4458	4458	5 The owners of and any subscribers to a community
4459	4459	6 renewable generation project shall not be considered
4460	4460	7 public utilities or alternative retail electricity
4461	4461	8 suppliers under the Public Utilities Act solely as a
4462	4462	9 result of their interest in or subscription to a community
4463	4463	10 renewable generation project and shall not be required to
4464	4464	11 become an alternative retail electric supplier by
4465	4465	12 participating in a community renewable generation project
4466	4466	13 with a public utility.
4467	4467	14 (O) For the delivery year beginning June 1, 2018, the
4468	4468	15 long-term renewable resources procurement plan required by
4469	4469	16 this subsection (c) shall provide for the Agency to
4470	4470	17 procure contracts to continue offering the Illinois Solar
4471	4471	18 for All Program described in subsection (b) of Section
4472	4472	19 1-56 of this Act, and the contracts approved by the
4473	4473	20 Commission shall be executed by the utilities that are
4474	4474	21 subject to this subsection (c). The long-term renewable
4475	4475	22 resources procurement plan shall allocate up to
4476	4476	23 $50,000,000 per delivery year to fund the programs, and
4477	4477	24 the plan shall determine the amount of funding to be
4478	4478	25 apportioned to the programs identified in subsection (b)
4479	4479	26 of Section 1-56 of this Act; provided that for the
4480	4480
4481	4481
4482	4482
4483	4483
4484	4484
4485	4485	SB3949 - 124 - LRB103 40603 LNS 73240 b
4486	4486
4487	4487
4488	4488	SB3949- 125 -LRB103 40603 LNS 73240 b SB3949 - 125 - LRB103 40603 LNS 73240 b
4489	4489	SB3949 - 125 - LRB103 40603 LNS 73240 b
4490	4490	1 delivery years beginning June 1, 2021, June 1, 2022, and
4491	4491	2 June 1, 2023, the long-term renewable resources
4492	4492	3 procurement plan may average the annual budgets over a
4493	4493	4 3-year period to account for program ramp-up. For the
4494	4494	5 delivery years beginning June 1, 2021, June 1, 2024, June
4495	4495	6 1, 2027, and June 1, 2030 and additional $10,000,000 shall
4496	4496	7 be provided to the Department of Commerce and Economic
4497	4497	8 Opportunity to implement the workforce development
4498	4498	9 programs and reporting as outlined in Section 16-108.12 of
4499	4499	10 the Public Utilities Act. In making the determinations
4500	4500	11 required under this subparagraph (O), the Commission shall
4501	4501	12 consider the experience and performance under the programs
4502	4502	13 and any evaluation reports. The Commission shall also
4503	4503	14 provide for an independent evaluation of those programs on
4504	4504	15 a periodic basis that are funded under this subparagraph
4505	4505	16 (O).
4506	4506	17 (P) All programs and procurements under this
4507	4507	18 subsection (c) shall be designed to encourage
4508	4508	19 participating projects to use a diverse and equitable
4509	4509	20 workforce and a diverse set of contractors, including
4510	4510	21 minority-owned businesses, disadvantaged businesses,
4511	4511	22 trade unions, graduates of any workforce training programs
4512	4512	23 administered under this Act, and small businesses.
4513	4513	24 The Agency shall develop a method to optimize
4514	4514	25 procurement of renewable energy credits from proposed
4515	4515	26 utility-scale projects that are located in communities
4516	4516
4517	4517
4518	4518
4519	4519
4520	4520
4521	4521	SB3949 - 125 - LRB103 40603 LNS 73240 b
4522	4522
4523	4523
4524	4524	SB3949- 126 -LRB103 40603 LNS 73240 b SB3949 - 126 - LRB103 40603 LNS 73240 b
4525	4525	SB3949 - 126 - LRB103 40603 LNS 73240 b
4526	4526	1 eligible to receive Energy Transition Community Grants
4527	4527	2 pursuant to Section 10-20 of the Energy Community
4528	4528	3 Reinvestment Act. If this requirement conflicts with other
4529	4529	4 provisions of law or the Agency determines that full
4530	4530	5 compliance with the requirements of this subparagraph (P)
4531	4531	6 would be unreasonably costly or administratively
4532	4532	7 impractical, the Agency is to propose alternative
4533	4533	8 approaches to achieve development of renewable energy
4534	4534	9 resources in communities eligible to receive Energy
4535	4535	10 Transition Community Grants pursuant to Section 10-20 of
4536	4536	11 the Energy Community Reinvestment Act or seek an exemption
4537	4537	12 from this requirement from the Commission.
4538	4538	13 (Q) Each facility listed in subitems (i) through (ix)
4539	4539	14 of item (1) of this subparagraph (Q) for which a renewable
4540	4540	15 energy credit delivery contract is signed after the
4541	4541	16 effective date of this amendatory Act of the 102nd General
4542	4542	17 Assembly is subject to the following requirements through
4543	4543	18 the Agency's long-term renewable resources procurement
4544	4544	19 plan:
4545	4545	20 (1) Each facility shall be subject to the
4546	4546	21 prevailing wage requirements included in the
4547	4547	22 Prevailing Wage Act. The Agency shall require
4548	4548	23 verification that all construction performed on the
4549	4549	24 facility by the renewable energy credit delivery
4550	4550	25 contract holder, its contractors, or its
4551	4551	26 subcontractors relating to construction of the
4552	4552
4553	4553
4554	4554
4555	4555
4556	4556
4557	4557	SB3949 - 126 - LRB103 40603 LNS 73240 b
4558	4558
4559	4559
4560	4560	SB3949- 127 -LRB103 40603 LNS 73240 b SB3949 - 127 - LRB103 40603 LNS 73240 b
4561	4561	SB3949 - 127 - LRB103 40603 LNS 73240 b
4562	4562	1 facility is performed by construction employees
4563	4563	2 receiving an amount for that work equal to or greater
4564	4564	3 than the general prevailing rate, as that term is
4565	4565	4 defined in Section 3 of the Prevailing Wage Act. For
4566	4566	5 purposes of this item (1), "house of worship" means
4567	4567	6 property that is both (1) used exclusively by a
4568	4568	7 religious society or body of persons as a place for
4569	4569	8 religious exercise or religious worship and (2)
4570	4570	9 recognized as exempt from taxation pursuant to Section
4571	4571	10 15-40 of the Property Tax Code. This item (1) shall
4572	4572	11 apply to any the following:
4573	4573	12 (i) all new utility-scale wind projects;
4574	4574	13 (ii) all new utility-scale photovoltaic
4575	4575	14 projects;
4576	4576	15 (iii) all new brownfield photovoltaic
4577	4577	16 projects;
4578	4578	17 (iv) all new photovoltaic community renewable
4579	4579	18 energy facilities that qualify for item (iii) of
4580	4580	19 subparagraph (K) of this paragraph (1);
4581	4581	20 (v) all new community driven community
4582	4582	21 photovoltaic projects that qualify for item (v) of
4583	4583	22 subparagraph (K) of this paragraph (1);
4584	4584	23 (vi) all new photovoltaic projects on public
4585	4585	24 school land that qualify for item (iv) of
4586	4586	25 subparagraph (K) of this paragraph (1);
4587	4587	26 (vii) all new photovoltaic distributed
4588	4588
4589	4589
4590	4590
4591	4591
4592	4592
4593	4593	SB3949 - 127 - LRB103 40603 LNS 73240 b
4594	4594
4595	4595
4596	4596	SB3949- 128 -LRB103 40603 LNS 73240 b SB3949 - 128 - LRB103 40603 LNS 73240 b
4597	4597	SB3949 - 128 - LRB103 40603 LNS 73240 b
4598	4598	1 renewable energy generation devices that (1)
4599	4599	2 qualify for item (i) of subparagraph (K) of this
4600	4600	3 paragraph (1); (2) are not projects that serve
4601	4601	4 single-family or multi-family residential
4602	4602	5 buildings; and (3) are not houses of worship where
4603	4603	6 the aggregate capacity including collocated
4604	4604	7 projects would not exceed 100 kilowatts;
4605	4605	8 (viii) all new photovoltaic distributed
4606	4606	9 renewable energy generation devices that (1)
4607	4607	10 qualify for item (ii) of subparagraph (K) of this
4608	4608	11 paragraph (1); (2) are not projects that serve
4609	4609	12 single-family or multi-family residential
4610	4610	13 buildings; and (3) are not houses of worship where
4611	4611	14 the aggregate capacity including collocated
4612	4612	15 projects would not exceed 100 kilowatts;
4613	4613	16 (ix) all new, modernized, or retooled
4614	4614	17 hydropower facilities.
4615	4615	18 (2) Renewable energy credits procured from new
4616	4616	19 utility-scale wind projects, new utility-scale solar
4617	4617	20 projects, and new brownfield solar projects pursuant
4618	4618	21 to Agency procurement events occurring after the
4619	4619	22 effective date of this amendatory Act of the 102nd
4620	4620	23 General Assembly must be from facilities built by
4621	4621	24 general contractors that must enter into a project
4622	4622	25 labor agreement, as defined by this Act, prior to
4623	4623	26 construction. The project labor agreement shall be
4624	4624
4625	4625
4626	4626
4627	4627
4628	4628
4629	4629	SB3949 - 128 - LRB103 40603 LNS 73240 b
4630	4630
4631	4631
4632	4632	SB3949- 129 -LRB103 40603 LNS 73240 b SB3949 - 129 - LRB103 40603 LNS 73240 b
4633	4633	SB3949 - 129 - LRB103 40603 LNS 73240 b
4634	4634	1 filed with the Director in accordance with procedures
4635	4635	2 established by the Agency through its long-term
4636	4636	3 renewable resources procurement plan. Any information
4637	4637	4 submitted to the Agency in this item (2) shall be
4638	4638	5 considered commercially sensitive information. At a
4639	4639	6 minimum, the project labor agreement must provide the
4640	4640	7 names, addresses, and occupations of the owner of the
4641	4641	8 plant and the individuals representing the labor
4642	4642	9 organization employees participating in the project
4643	4643	10 labor agreement consistent with the Project Labor
4644	4644	11 Agreements Act. The agreement must also specify the
4645	4645	12 terms and conditions as defined by this Act.
4646	4646	13 Notwithstanding any other provision of this
4647	4647	14 subparagraph, utility-scale solar projects and
4648	4648	15 utility-scale wind projects that are not located in
4649	4649	16 Illinois, but are associated with high voltage direct
4650	4650	17 current renewable energy credits are not obligated to
4651	4651	18 comply with this subparagraph if the associated high
4652	4652	19 voltage direct current transmission facility was
4653	4653	20 constructed under a project labor agreement signed by
4654	4654	21 2 or more construction crafts and the construction
4655	4655	22 project workforce for the generation unit was paid at
4656	4656	23 least the prevailing wage as determined by the United
4657	4657	24 States Department of Labor in the locality where the
4658	4658	25 work is being performed.
4659	4659	26 (3) It is the intent of this Section to ensure that
4660	4660
4661	4661
4662	4662
4663	4663
4664	4664
4665	4665	SB3949 - 129 - LRB103 40603 LNS 73240 b
4666	4666
4667	4667
4668	4668	SB3949- 130 -LRB103 40603 LNS 73240 b SB3949 - 130 - LRB103 40603 LNS 73240 b
4669	4669	SB3949 - 130 - LRB103 40603 LNS 73240 b
4670	4670	1 economic development occurs across Illinois
4671	4671	2 communities, that emerging businesses may grow, and
4672	4672	3 that there is improved access to the clean energy
4673	4673	4 economy by persons who have greater economic burdens
4674	4674	5 to success. The Agency shall take into consideration
4675	4675	6 the unique cost of compliance of this subparagraph (Q)
4676	4676	7 that might be borne by equity eligible contractors,
4677	4677	8 shall include such costs when determining the price of
4678	4678	9 renewable energy credits in the Adjustable Block
4679	4679	10 program, and shall take such costs into consideration
4680	4680	11 in a nondiscriminatory manner when comparing bids for
4681	4681	12 competitive procurements. The Agency shall consider
4682	4682	13 costs associated with compliance whether in the
4683	4683	14 development, financing, or construction of projects.
4684	4684	15 The Agency shall periodically review the assumptions
4685	4685	16 in these costs and may adjust prices, in compliance
4686	4686	17 with subparagraph (M) of this paragraph (1).
4687	4687	18 (R) In its long-term renewable resources procurement
4688	4688	19 plan, the Agency shall establish a self-direct renewable
4689	4689	20 portfolio standard compliance program for eligible
4690	4690	21 self-direct customers that purchase renewable energy
4691	4691	22 credits from utility-scale wind and solar projects through
4692	4692	23 long-term agreements for purchase of renewable energy
4693	4693	24 credits as described in this Section. Such long-term
4694	4694	25 agreements may include the purchase of energy or other
4695	4695	26 products on a physical or financial basis and may involve
4696	4696
4697	4697
4698	4698
4699	4699
4700	4700
4701	4701	SB3949 - 130 - LRB103 40603 LNS 73240 b
4702	4702
4703	4703
4704	4704	SB3949- 131 -LRB103 40603 LNS 73240 b SB3949 - 131 - LRB103 40603 LNS 73240 b
4705	4705	SB3949 - 131 - LRB103 40603 LNS 73240 b
4706	4706	1 an alternative retail electric supplier as defined in
4707	4707	2 Section 16-102 of the Public Utilities Act. This program
4708	4708	3 shall take effect in the delivery year commencing June 1,
4709	4709	4 2023.
4710	4710	5 (1) For the purposes of this subparagraph:
4711	4711	6 "Eligible self-direct customer" means any retail
4712	4712	7 customers of an electric utility that serves 3,000,000
4713	4713	8 or more retail customers in the State and whose total
4714	4714	9 highest 30-minute demand was more than 10,000
4715	4715	10 kilowatts, or any retail customers of an electric
4716	4716	11 utility that serves less than 3,000,000 retail
4717	4717	12 customers but more than 500,000 retail customers in
4718	4718	13 the State and whose total highest 15-minute demand was
4719	4719	14 more than 10,000 kilowatts.
4720	4720	15 "Retail customer" has the meaning set forth in
4721	4721	16 Section 16-102 of the Public Utilities Act and
4722	4722	17 multiple retail customer accounts under the same
4723	4723	18 corporate parent may aggregate their account demands
4724	4724	19 to meet the 10,000 kilowatt threshold. The criteria
4725	4725	20 for determining whether this subparagraph is
4726	4726	21 applicable to a retail customer shall be based on the
4727	4727	22 12 consecutive billing periods prior to the start of
4728	4728	23 the year in which the application is filed.
4729	4729	24 (2) For renewable energy credits to count toward
4730	4730	25 the self-direct renewable portfolio standard
4731	4731	26 compliance program, they must:
4732	4732
4733	4733
4734	4734
4735	4735
4736	4736
4737	4737	SB3949 - 131 - LRB103 40603 LNS 73240 b
4738	4738
4739	4739
4740	4740	SB3949- 132 -LRB103 40603 LNS 73240 b SB3949 - 132 - LRB103 40603 LNS 73240 b
4741	4741	SB3949 - 132 - LRB103 40603 LNS 73240 b
4742	4742	1 (i) qualify as renewable energy credits as
4743	4743	2 defined in Section 1-10 of this Act;
4744	4744	3 (ii) be sourced from one or more renewable
4745	4745	4 energy generating facilities that comply with the
4746	4746	5 geographic requirements as set forth in
4747	4747	6 subparagraph (I) of paragraph (1) of subsection
4748	4748	7 (c) as interpreted through the Agency's long-term
4749	4749	8 renewable resources procurement plan, or, where
4750	4750	9 applicable, the geographic requirements that
4751	4751	10 governed utility-scale renewable energy credits at
4752	4752	11 the time the eligible self-direct customer entered
4753	4753	12 into the applicable renewable energy credit
4754	4754	13 purchase agreement;
4755	4755	14 (iii) be procured through long-term contracts
4756	4756	15 with term lengths of at least 10 years either
4757	4757	16 directly with the renewable energy generating
4758	4758	17 facility or through a bundled power purchase
4759	4759	18 agreement, a virtual power purchase agreement, an
4760	4760	19 agreement between the renewable generating
4761	4761	20 facility, an alternative retail electric supplier,
4762	4762	21 and the customer, or such other structure as is
4763	4763	22 permissible under this subparagraph (R);
4764	4764	23 (iv) be equivalent in volume to at least 40%
4765	4765	24 of the eligible self-direct customer's usage,
4766	4766	25 determined annually by the eligible self-direct
4767	4767	26 customer's usage during the previous delivery
4768	4768
4769	4769
4770	4770
4771	4771
4772	4772
4773	4773	SB3949 - 132 - LRB103 40603 LNS 73240 b
4774	4774
4775	4775
4776	4776	SB3949- 133 -LRB103 40603 LNS 73240 b SB3949 - 133 - LRB103 40603 LNS 73240 b
4777	4777	SB3949 - 133 - LRB103 40603 LNS 73240 b
4778	4778	1 year, measured to the nearest megawatt-hour;
4779	4779	2 (v) be retired by or on behalf of the large
4780	4780	3 energy customer;
4781	4781	4 (vi) be sourced from new utility-scale wind
4782	4782	5 projects or new utility-scale solar projects; and
4783	4783	6 (vii) if the contracts for renewable energy
4784	4784	7 credits are entered into after the effective date
4785	4785	8 of this amendatory Act of the 102nd General
4786	4786	9 Assembly, the new utility-scale wind projects or
4787	4787	10 new utility-scale solar projects must comply with
4788	4788	11 the requirements established in subparagraphs (P)
4789	4789	12 and (Q) of paragraph (1) of this subsection (c)
4790	4790	13 and subsection (c-10).
4791	4791	14 (3) The self-direct renewable portfolio standard
4792	4792	15 compliance program shall be designed to allow eligible
4793	4793	16 self-direct customers to procure new renewable energy
4794	4794	17 credits from new utility-scale wind projects or new
4795	4795	18 utility-scale photovoltaic projects. The Agency shall
4796	4796	19 annually determine the amount of utility-scale
4797	4797	20 renewable energy credits it will include each year
4798	4798	21 from the self-direct renewable portfolio standard
4799	4799	22 compliance program, subject to receiving qualifying
4800	4800	23 applications. In making this determination, the Agency
4801	4801	24 shall evaluate publicly available analyses and studies
4802	4802	25 of the potential market size for utility-scale
4803	4803	26 renewable energy long-term purchase agreements by
4804	4804
4805	4805
4806	4806
4807	4807
4808	4808
4809	4809	SB3949 - 133 - LRB103 40603 LNS 73240 b
4810	4810
4811	4811
4812	4812	SB3949- 134 -LRB103 40603 LNS 73240 b SB3949 - 134 - LRB103 40603 LNS 73240 b
4813	4813	SB3949 - 134 - LRB103 40603 LNS 73240 b
4814	4814	1 commercial and industrial energy customers and make
4815	4815	2 that report publicly available. If demand for
4816	4816	3 participation in the self-direct renewable portfolio
4817	4817	4 standard compliance program exceeds availability, the
4818	4818	5 Agency shall ensure participation is evenly split
4819	4819	6 between commercial and industrial users to the extent
4820	4820	7 there is sufficient demand from both customer classes.
4821	4821	8 Each renewable energy credit procured pursuant to this
4822	4822	9 subparagraph (R) by a self-direct customer shall
4823	4823	10 reduce the total volume of renewable energy credits
4824	4824	11 the Agency is otherwise required to procure from new
4825	4825	12 utility-scale projects pursuant to subparagraph (C) of
4826	4826	13 paragraph (1) of this subsection (c) on behalf of
4827	4827	14 contracting utilities where the eligible self-direct
4828	4828	15 customer is located. The self-direct customer shall
4829	4829	16 file an annual compliance report with the Agency
4830	4830	17 pursuant to terms established by the Agency through
4831	4831	18 its long-term renewable resources procurement plan to
4832	4832	19 be eligible for participation in this program.
4833	4833	20 Customers must provide the Agency with their most
4834	4834	21 recent electricity billing statements or other
4835	4835	22 information deemed necessary by the Agency to
4836	4836	23 demonstrate they are an eligible self-direct customer.
4837	4837	24 (4) The Commission shall approve a reduction in
4838	4838	25 the volumetric charges collected pursuant to Section
4839	4839	26 16-108 of the Public Utilities Act for approved
4840	4840
4841	4841
4842	4842
4843	4843
4844	4844
4845	4845	SB3949 - 134 - LRB103 40603 LNS 73240 b
4846	4846
4847	4847
4848	4848	SB3949- 135 -LRB103 40603 LNS 73240 b SB3949 - 135 - LRB103 40603 LNS 73240 b
4849	4849	SB3949 - 135 - LRB103 40603 LNS 73240 b
4850	4850	1 eligible self-direct customers equivalent to the
4851	4851	2 anticipated cost of renewable energy credit deliveries
4852	4852	3 under contracts for new utility-scale wind and new
4853	4853	4 utility-scale solar entered for each delivery year
4854	4854	5 after the large energy customer begins retiring
4855	4855	6 eligible new utility scale renewable energy credits
4856	4856	7 for self-compliance. The self-direct credit amount
4857	4857	8 shall be determined annually and is equal to the
4858	4858	9 estimated portion of the cost authorized by
4859	4859	10 subparagraph (E) of paragraph (1) of this subsection
4860	4860	11 (c) that supported the annual procurement of
4861	4861	12 utility-scale renewable energy credits in the prior
4862	4862	13 delivery year using a methodology described in the
4863	4863	14 long-term renewable resources procurement plan,
4864	4864	15 expressed on a per kilowatthour basis, and does not
4865	4865	16 include (i) costs associated with any contracts
4866	4866	17 entered into before the delivery year in which the
4867	4867	18 customer files the initial compliance report to be
4868	4868	19 eligible for participation in the self-direct program,
4869	4869	20 and (ii) costs associated with procuring renewable
4870	4870	21 energy credits through existing and future contracts
4871	4871	22 through the Adjustable Block Program, subsection (c-5)
4872	4872	23 of this Section 1-75, and the Solar for All Program.
4873	4873	24 The Agency shall assist the Commission in determining
4874	4874	25 the current and future costs. The Agency must
4875	4875	26 determine the self-direct credit amount for new and
4876	4876
4877	4877
4878	4878
4879	4879
4880	4880
4881	4881	SB3949 - 135 - LRB103 40603 LNS 73240 b
4882	4882
4883	4883
4884	4884	SB3949- 136 -LRB103 40603 LNS 73240 b SB3949 - 136 - LRB103 40603 LNS 73240 b
4885	4885	SB3949 - 136 - LRB103 40603 LNS 73240 b
4886	4886	1 existing eligible self-direct customers and submit
4887	4887	2 this to the Commission in an annual compliance filing.
4888	4888	3 The Commission must approve the self-direct credit
4889	4889	4 amount by June 1, 2023 and June 1 of each delivery year
4890	4890	5 thereafter.
4891	4891	6 (5) Customers described in this subparagraph (R)
4892	4892	7 shall apply, on a form developed by the Agency, to the
4893	4893	8 Agency to be designated as a self-direct eligible
4894	4894	9 customer. Once the Agency determines that a
4895	4895	10 self-direct customer is eligible for participation in
4896	4896	11 the program, the self-direct customer will remain
4897	4897	12 eligible until the end of the term of the contract.
4898	4898	13 Thereafter, application may be made not less than 12
4899	4899	14 months before the filing date of the long-term
4900	4900	15 renewable resources procurement plan described in this
4901	4901	16 Act. At a minimum, such application shall contain the
4902	4902	17 following:
4903	4903	18 (i) the customer's certification that, at the
4904	4904	19 time of the customer's application, the customer
4905	4905	20 qualifies to be a self-direct eligible customer,
4906	4906	21 including documents demonstrating that
4907	4907	22 qualification;
4908	4908	23 (ii) the customer's certification that the
4909	4909	24 customer has entered into or will enter into by
4910	4910	25 the beginning of the applicable procurement year,
4911	4911	26 one or more bilateral contracts for new wind
4912	4912
4913	4913
4914	4914
4915	4915
4916	4916
4917	4917	SB3949 - 136 - LRB103 40603 LNS 73240 b
4918	4918
4919	4919
4920	4920	SB3949- 137 -LRB103 40603 LNS 73240 b SB3949 - 137 - LRB103 40603 LNS 73240 b
4921	4921	SB3949 - 137 - LRB103 40603 LNS 73240 b
4922	4922	1 projects or new photovoltaic projects, including
4923	4923	2 supporting documentation;
4924	4924	3 (iii) certification that the contract or
4925	4925	4 contracts for new renewable energy resources are
4926	4926	5 long-term contracts with term lengths of at least
4927	4927	6 10 years, including supporting documentation;
4928	4928	7 (iv) certification of the quantities of
4929	4929	8 renewable energy credits that the customer will
4930	4930	9 purchase each year under such contract or
4931	4931	10 contracts, including supporting documentation;
4932	4932	11 (v) proof that the contract is sufficient to
4933	4933	12 produce renewable energy credits to be equivalent
4934	4934	13 in volume to at least 40% of the large energy
4935	4935	14 customer's usage from the previous delivery year,
4936	4936	15 measured to the nearest megawatt-hour; and
4937	4937	16 (vi) certification that the customer intends
4938	4938	17 to maintain the contract for the duration of the
4939	4939	18 length of the contract.
4940	4940	19 (6) If a customer receives the self-direct credit
4941	4941	20 but fails to properly procure and retire renewable
4942	4942	21 energy credits as required under this subparagraph
4943	4943	22 (R), the Commission, on petition from the Agency and
4944	4944	23 after notice and hearing, may direct such customer's
4945	4945	24 utility to recover the cost of the wrongfully received
4946	4946	25 self-direct credits plus interest through an adder to
4947	4947	26 charges assessed pursuant to Section 16-108 of the
4948	4948
4949	4949
4950	4950
4951	4951
4952	4952
4953	4953	SB3949 - 137 - LRB103 40603 LNS 73240 b
4954	4954
4955	4955
4956	4956	SB3949- 138 -LRB103 40603 LNS 73240 b SB3949 - 138 - LRB103 40603 LNS 73240 b
4957	4957	SB3949 - 138 - LRB103 40603 LNS 73240 b
4958	4958	1 Public Utilities Act. Self-direct customers who
4959	4959	2 knowingly fail to properly procure and retire
4960	4960	3 renewable energy credits and do not notify the Agency
4961	4961	4 are ineligible for continued participation in the
4962	4962	5 self-direct renewable portfolio standard compliance
4963	4963	6 program.
4964	4964	7 (2) (Blank).
4965	4965	8 (3) (Blank).
4966	4966	9 (4) The electric utility shall retire all renewable
4967	4967	10 energy credits used to comply with the standard.
4968	4968	11 (5) Beginning with the 2010 delivery year and ending
4969	4969	12 June 1, 2017, an electric utility subject to this
4970	4970	13 subsection (c) shall apply the lesser of the maximum
4971	4971	14 alternative compliance payment rate or the most recent
4972	4972	15 estimated alternative compliance payment rate for its
4973	4973	16 service territory for the corresponding compliance period,
4974	4974	17 established pursuant to subsection (d) of Section 16-115D
4975	4975	18 of the Public Utilities Act to its retail customers that
4976	4976	19 take service pursuant to the electric utility's hourly
4977	4977	20 pricing tariff or tariffs. The electric utility shall
4978	4978	21 retain all amounts collected as a result of the
4979	4979	22 application of the alternative compliance payment rate or
4980	4980	23 rates to such customers, and, beginning in 2011, the
4981	4981	24 utility shall include in the information provided under
4982	4982	25 item (1) of subsection (d) of Section 16-111.5 of the
4983	4983	26 Public Utilities Act the amounts collected under the
4984	4984
4985	4985
4986	4986
4987	4987
4988	4988
4989	4989	SB3949 - 138 - LRB103 40603 LNS 73240 b
4990	4990
4991	4991
4992	4992	SB3949- 139 -LRB103 40603 LNS 73240 b SB3949 - 139 - LRB103 40603 LNS 73240 b
4993	4993	SB3949 - 139 - LRB103 40603 LNS 73240 b
4994	4994	1 alternative compliance payment rate or rates for the prior
4995	4995	2 year ending May 31. Notwithstanding any limitation on the
4996	4996	3 procurement of renewable energy resources imposed by item
4997	4997	4 (2) of this subsection (c), the Agency shall increase its
4998	4998	5 spending on the purchase of renewable energy resources to
4999	4999	6 be procured by the electric utility for the next plan year
5000	5000	7 by an amount equal to the amounts collected by the utility
5001	5001	8 under the alternative compliance payment rate or rates in
5002	5002	9 the prior year ending May 31.
5003	5003	10 (6) The electric utility shall be entitled to recover
5004	5004	11 all of its costs associated with the procurement of
5005	5005	12 renewable energy credits under plans approved under this
5006	5006	13 Section and Section 16-111.5 of the Public Utilities Act.
5007	5007	14 These costs shall include associated reasonable expenses
5008	5008	15 for implementing the procurement programs, including, but
5009	5009	16 not limited to, the costs of administering and evaluating
5010	5010	17 the Adjustable Block program, through an automatic
5011	5011	18 adjustment clause tariff in accordance with subsection (k)
5012	5012	19 of Section 16-108 of the Public Utilities Act.
5013	5013	20 (7) Renewable energy credits procured from new
5014	5014	21 photovoltaic projects or new distributed renewable energy
5015	5015	22 generation devices under this Section after June 1, 2017
5016	5016	23 (the effective date of Public Act 99-906) must be procured
5017	5017	24 from devices installed by a qualified person in compliance
5018	5018	25 with the requirements of Section 16-128A of the Public
5019	5019	26 Utilities Act and any rules or regulations adopted
5020	5020
5021	5021
5022	5022
5023	5023
5024	5024
5025	5025	SB3949 - 139 - LRB103 40603 LNS 73240 b
5026	5026
5027	5027
5028	5028	SB3949- 140 -LRB103 40603 LNS 73240 b SB3949 - 140 - LRB103 40603 LNS 73240 b
5029	5029	SB3949 - 140 - LRB103 40603 LNS 73240 b
5030	5030	1 thereunder.
5031	5031	2 In meeting the renewable energy requirements of this
5032	5032	3 subsection (c), to the extent feasible and consistent with
5033	5033	4 State and federal law, the renewable energy credit
5034	5034	5 procurements, Adjustable Block solar program, and
5035	5035	6 community renewable generation program shall provide
5036	5036	7 employment opportunities for all segments of the
5037	5037	8 population and workforce, including minority-owned and
5038	5038	9 female-owned business enterprises, and shall not,
5039	5039	10 consistent with State and federal law, discriminate based
5040	5040	11 on race or socioeconomic status.
5041	5041	12 (c-5) Procurement of renewable energy credits from new
5042	5042	13 renewable energy facilities installed at or adjacent to the
5043	5043	14 sites of electric generating facilities that burn or burned
5044	5044	15 coal as their primary fuel source.
5045	5045	16 (1) In addition to the procurement of renewable energy
5046	5046	17 credits pursuant to long-term renewable resources
5047	5047	18 procurement plans in accordance with subsection (c) of
5048	5048	19 this Section and Section 16-111.5 of the Public Utilities
5049	5049	20 Act, the Agency shall conduct procurement events in
5050	5050	21 accordance with this subsection (c-5) for the procurement
5051	5051	22 by electric utilities that served more than 300,000 retail
5052	5052	23 customers in this State as of January 1, 2019 of renewable
5053	5053	24 energy credits from new renewable energy facilities to be
5054	5054	25 installed at or adjacent to the sites of electric
5055	5055	26 generating facilities that, as of January 1, 2016, burned
5056	5056
5057	5057
5058	5058
5059	5059
5060	5060
5061	5061	SB3949 - 140 - LRB103 40603 LNS 73240 b
5062	5062
5063	5063
5064	5064	SB3949- 141 -LRB103 40603 LNS 73240 b SB3949 - 141 - LRB103 40603 LNS 73240 b
5065	5065	SB3949 - 141 - LRB103 40603 LNS 73240 b
5066	5066	1 coal as their primary fuel source and meet the other
5067	5067	2 criteria specified in this subsection (c-5). For purposes
5068	5068	3 of this subsection (c-5), "new renewable energy facility"
5069	5069	4 means a new utility-scale solar project as defined in this
5070	5070	5 Section 1-75. The renewable energy credits procured
5071	5071	6 pursuant to this subsection (c-5) may be included or
5072	5072	7 counted for purposes of compliance with the amounts of
5073	5073	8 renewable energy credits required to be procured pursuant
5074	5074	9 to subsection (c) of this Section to the extent that there
5075	5075	10 are otherwise shortfalls in compliance with such
5076	5076	11 requirements. The procurement of renewable energy credits
5077	5077	12 by electric utilities pursuant to this subsection (c-5)
5078	5078	13 shall be funded solely by revenues collected from the Coal
5079	5079	14 to Solar and Energy Storage Initiative Charge provided for
5080	5080	15 in this subsection (c-5) and subsection (i-5) of Section
5081	5081	16 16-108 of the Public Utilities Act, shall not be funded by
5082	5082	17 revenues collected through any of the other funding
5083	5083	18 mechanisms provided for in subsection (c) of this Section,
5084	5084	19 and shall not be subject to the limitation imposed by
5085	5085	20 subsection (c) on charges to retail customers for costs to
5086	5086	21 procure renewable energy resources pursuant to subsection
5087	5087	22 (c), and shall not be subject to any other requirements or
5088	5088	23 limitations of subsection (c).
5089	5089	24 (2) The Agency shall conduct 2 procurement events to
5090	5090	25 select owners of electric generating facilities meeting
5091	5091	26 the eligibility criteria specified in this subsection
5092	5092
5093	5093
5094	5094
5095	5095
5096	5096
5097	5097	SB3949 - 141 - LRB103 40603 LNS 73240 b
5098	5098
5099	5099
5100	5100	SB3949- 142 -LRB103 40603 LNS 73240 b SB3949 - 142 - LRB103 40603 LNS 73240 b
5101	5101	SB3949 - 142 - LRB103 40603 LNS 73240 b
5102	5102	1 (c-5) to enter into long-term contracts to sell renewable
5103	5103	2 energy credits to electric utilities serving more than
5104	5104	3 300,000 retail customers in this State as of January 1,
5105	5105	4 2019. The first procurement event shall be conducted no
5106	5106	5 later than March 31, 2022, unless the Agency elects to
5107	5107	6 delay it, until no later than May 1, 2022, due to its
5108	5108	7 overall volume of work, and shall be to select owners of
5109	5109	8 electric generating facilities located in this State and
5110	5110	9 south of federal Interstate Highway 80 that meet the
5111	5111	10 eligibility criteria specified in this subsection (c-5).
5112	5112	11 The second procurement event shall be conducted no sooner
5113	5113	12 than September 30, 2022 and no later than October 31, 2022
5114	5114	13 and shall be to select owners of electric generating
5115	5115	14 facilities located anywhere in this State that meet the
5116	5116	15 eligibility criteria specified in this subsection (c-5).
5117	5117	16 The Agency shall establish and announce a time period,
5118	5118	17 which shall begin no later than 30 days prior to the
5119	5119	18 scheduled date for the procurement event, during which
5120	5120	19 applicants may submit applications to be selected as
5121	5121	20 suppliers of renewable energy credits pursuant to this
5122	5122	21 subsection (c-5). The eligibility criteria for selection
5123	5123	22 as a supplier of renewable energy credits pursuant to this
5124	5124	23 subsection (c-5) shall be as follows:
5125	5125	24 (A) The applicant owns an electric generating
5126	5126	25 facility located in this State that: (i) as of January
5127	5127	26 1, 2016, burned coal as its primary fuel to generate
5128	5128
5129	5129
5130	5130
5131	5131
5132	5132
5133	5133	SB3949 - 142 - LRB103 40603 LNS 73240 b
5134	5134
5135	5135
5136	5136	SB3949- 143 -LRB103 40603 LNS 73240 b SB3949 - 143 - LRB103 40603 LNS 73240 b
5137	5137	SB3949 - 143 - LRB103 40603 LNS 73240 b
5138	5138	1 electricity; and (ii) has, or had prior to retirement,
5139	5139	2 an electric generating capacity of at least 150
5140	5140	3 megawatts. The electric generating facility can be
5141	5141	4 either: (i) retired as of the date of the procurement
5142	5142	5 event; or (ii) still operating as of the date of the
5143	5143	6 procurement event.
5144	5144	7 (B) The applicant is not (i) an electric
5145	5145	8 cooperative as defined in Section 3-119 of the Public
5146	5146	9 Utilities Act, or (ii) an entity described in
5147	5147	10 subsection (b)(1) of Section 3-105 of the Public
5148	5148	11 Utilities Act, or an association or consortium of or
5149	5149	12 an entity owned by entities described in (i) or (ii);
5150	5150	13 and the coal-fueled electric generating facility was
5151	5151	14 at one time owned, in whole or in part, by a public
5152	5152	15 utility as defined in Section 3-105 of the Public
5153	5153	16 Utilities Act.
5154	5154	17 (C) If participating in the first procurement
5155	5155	18 event, the applicant proposes and commits to construct
5156	5156	19 and operate, at the site, and if necessary for
5157	5157	20 sufficient space on property adjacent to the existing
5158	5158	21 property, at which the electric generating facility
5159	5159	22 identified in paragraph (A) is located: (i) a new
5160	5160	23 renewable energy facility of at least 20 megawatts but
5161	5161	24 no more than 100 megawatts of electric generating
5162	5162	25 capacity, and (ii) an energy storage facility having a
5163	5163	26 storage capacity equal to at least 2 megawatts and at
5164	5164
5165	5165
5166	5166
5167	5167
5168	5168
5169	5169	SB3949 - 143 - LRB103 40603 LNS 73240 b
5170	5170
5171	5171
5172	5172	SB3949- 144 -LRB103 40603 LNS 73240 b SB3949 - 144 - LRB103 40603 LNS 73240 b
5173	5173	SB3949 - 144 - LRB103 40603 LNS 73240 b
5174	5174	1 most 10 megawatts. If participating in the second
5175	5175	2 procurement event, the applicant proposes and commits
5176	5176	3 to construct and operate, at the site, and if
5177	5177	4 necessary for sufficient space on property adjacent to
5178	5178	5 the existing property, at which the electric
5179	5179	6 generating facility identified in paragraph (A) is
5180	5180	7 located: (i) a new renewable energy facility of at
5181	5181	8 least 5 megawatts but no more than 20 megawatts of
5182	5182	9 electric generating capacity, and (ii) an energy
5183	5183	10 storage facility having a storage capacity equal to at
5184	5184	11 least 0.5 megawatts and at most one megawatt.
5185	5185	12 (D) The applicant agrees that the new renewable
5186	5186	13 energy facility and the energy storage facility will
5187	5187	14 be constructed or installed by a qualified entity or
5188	5188	15 entities in compliance with the requirements of
5189	5189	16 subsection (g) of Section 16-128A of the Public
5190	5190	17 Utilities Act and any rules adopted thereunder.
5191	5191	18 (E) The applicant agrees that personnel operating
5192	5192	19 the new renewable energy facility and the energy
5193	5193	20 storage facility will have the requisite skills,
5194	5194	21 knowledge, training, experience, and competence, which
5195	5195	22 may be demonstrated by completion or current
5196	5196	23 participation and ultimate completion by employees of
5197	5197	24 an accredited or otherwise recognized apprenticeship
5198	5198	25 program for the employee's particular craft, trade, or
5199	5199	26 skill, including through training and education
5200	5200
5201	5201
5202	5202
5203	5203
5204	5204
5205	5205	SB3949 - 144 - LRB103 40603 LNS 73240 b
5206	5206
5207	5207
5208	5208	SB3949- 145 -LRB103 40603 LNS 73240 b SB3949 - 145 - LRB103 40603 LNS 73240 b
5209	5209	SB3949 - 145 - LRB103 40603 LNS 73240 b
5210	5210	1 courses and opportunities offered by the owner to
5211	5211	2 employees of the coal-fueled electric generating
5212	5212	3 facility or by previous employment experience
5213	5213	4 performing the employee's particular work skill or
5214	5214	5 function.
5215	5215	6 (F) The applicant commits that not less than the
5216	5216	7 prevailing wage, as determined pursuant to the
5217	5217	8 Prevailing Wage Act, will be paid to the applicant's
5218	5218	9 employees engaged in construction activities
5219	5219	10 associated with the new renewable energy facility and
5220	5220	11 the new energy storage facility and to the employees
5221	5221	12 of applicant's contractors engaged in construction
5222	5222	13 activities associated with the new renewable energy
5223	5223	14 facility and the new energy storage facility, and
5224	5224	15 that, on or before the commercial operation date of
5225	5225	16 the new renewable energy facility, the applicant shall
5226	5226	17 file a report with the Agency certifying that the
5227	5227	18 requirements of this subparagraph (F) have been met.
5228	5228	19 (G) The applicant commits that if selected, it
5229	5229	20 will negotiate a project labor agreement for the
5230	5230	21 construction of the new renewable energy facility and
5231	5231	22 associated energy storage facility that includes
5232	5232	23 provisions requiring the parties to the agreement to
5233	5233	24 work together to establish diversity threshold
5234	5234	25 requirements and to ensure best efforts to meet
5235	5235	26 diversity targets, improve diversity at the applicable
5236	5236
5237	5237
5238	5238
5239	5239
5240	5240
5241	5241	SB3949 - 145 - LRB103 40603 LNS 73240 b
5242	5242
5243	5243
5244	5244	SB3949- 146 -LRB103 40603 LNS 73240 b SB3949 - 146 - LRB103 40603 LNS 73240 b
5245	5245	SB3949 - 146 - LRB103 40603 LNS 73240 b
5246	5246	1 job site, create diverse apprenticeship opportunities,
5247	5247	2 and create opportunities to employ former coal-fired
5248	5248	3 power plant workers.
5249	5249	4 (H) The applicant commits to enter into a contract
5250	5250	5 or contracts for the applicable duration to provide
5251	5251	6 specified numbers of renewable energy credits each
5252	5252	7 year from the new renewable energy facility to
5253	5253	8 electric utilities that served more than 300,000
5254	5254	9 retail customers in this State as of January 1, 2019,
5255	5255	10 at a price of $30 per renewable energy credit. The
5256	5256	11 price per renewable energy credit shall be fixed at
5257	5257	12 $30 for the applicable duration and the renewable
5258	5258	13 energy credits shall not be indexed renewable energy
5259	5259	14 credits as provided for in item (v) of subparagraph
5260	5260	15 (G) of paragraph (1) of subsection (c) of Section 1-75
5261	5261	16 of this Act. The applicable duration of each contract
5262	5262	17 shall be 20 years, unless the applicant is physically
5263	5263	18 interconnected to the PJM Interconnection, LLC
5264	5264	19 transmission grid and had a generating capacity of at
5265	5265	20 least 1,200 megawatts as of January 1, 2021, in which
5266	5266	21 case the applicable duration of the contract shall be
5267	5267	22 15 years.
5268	5268	23 (I) The applicant's application is certified by an
5269	5269	24 officer of the applicant and by an officer of the
5270	5270	25 applicant's ultimate parent company, if any.
5271	5271	26 (3) An applicant may submit applications to contract
5272	5272
5273	5273
5274	5274
5275	5275
5276	5276
5277	5277	SB3949 - 146 - LRB103 40603 LNS 73240 b
5278	5278
5279	5279
5280	5280	SB3949- 147 -LRB103 40603 LNS 73240 b SB3949 - 147 - LRB103 40603 LNS 73240 b
5281	5281	SB3949 - 147 - LRB103 40603 LNS 73240 b
5282	5282	1 to supply renewable energy credits from more than one new
5283	5283	2 renewable energy facility to be constructed at or adjacent
5284	5284	3 to one or more qualifying electric generating facilities
5285	5285	4 owned by the applicant. The Agency may select new
5286	5286	5 renewable energy facilities to be located at or adjacent
5287	5287	6 to the sites of more than one qualifying electric
5288	5288	7 generation facility owned by an applicant to contract with
5289	5289	8 electric utilities to supply renewable energy credits from
5290	5290	9 such facilities.
5291	5291	10 (4) The Agency shall assess fees to each applicant to
5292	5292	11 recover the Agency's costs incurred in receiving and
5293	5293	12 evaluating applications, conducting the procurement event,
5294	5294	13 developing contracts for sale, delivery and purchase of
5295	5295	14 renewable energy credits, and monitoring the
5296	5296	15 administration of such contracts, as provided for in this
5297	5297	16 subsection (c-5), including fees paid to a procurement
5298	5298	17 administrator retained by the Agency for one or more of
5299	5299	18 these purposes.
5300	5300	19 (5) The Agency shall select the applicants and the new
5301	5301	20 renewable energy facilities to contract with electric
5302	5302	21 utilities to supply renewable energy credits in accordance
5303	5303	22 with this subsection (c-5). In the first procurement
5304	5304	23 event, the Agency shall select applicants and new
5305	5305	24 renewable energy facilities to supply renewable energy
5306	5306	25 credits, at a price of $30 per renewable energy credit,
5307	5307	26 aggregating to no less than 400,000 renewable energy
5308	5308
5309	5309
5310	5310
5311	5311
5312	5312
5313	5313	SB3949 - 147 - LRB103 40603 LNS 73240 b
5314	5314
5315	5315
5316	5316	SB3949- 148 -LRB103 40603 LNS 73240 b SB3949 - 148 - LRB103 40603 LNS 73240 b
5317	5317	SB3949 - 148 - LRB103 40603 LNS 73240 b
5318	5318	1 credits per year for the applicable duration, assuming
5319	5319	2 sufficient qualifying applications to supply, in the
5320	5320	3 aggregate, at least that amount of renewable energy
5321	5321	4 credits per year; and not more than 580,000 renewable
5322	5322	5 energy credits per year for the applicable duration. In
5323	5323	6 the second procurement event, the Agency shall select
5324	5324	7 applicants and new renewable energy facilities to supply
5325	5325	8 renewable energy credits, at a price of $30 per renewable
5326	5326	9 energy credit, aggregating to no more than 625,000
5327	5327	10 renewable energy credits per year less the amount of
5328	5328	11 renewable energy credits each year contracted for as a
5329	5329	12 result of the first procurement event, for the applicable
5330	5330	13 durations. The number of renewable energy credits to be
5331	5331	14 procured as specified in this paragraph (5) shall not be
5332	5332	15 reduced based on renewable energy credits procured in the
5333	5333	16 self-direct renewable energy credit compliance program
5334	5334	17 established pursuant to subparagraph (R) of paragraph (1)
5335	5335	18 of subsection (c) of Section 1-75.
5336	5336	19 (6) The obligation to purchase renewable energy
5337	5337	20 credits from the applicants and their new renewable energy
5338	5338	21 facilities selected by the Agency shall be allocated to
5339	5339	22 the electric utilities based on their respective
5340	5340	23 percentages of kilowatthours delivered to delivery
5341	5341	24 services customers to the aggregate kilowatthour
5342	5342	25 deliveries by the electric utilities to delivery services
5343	5343	26 customers for the year ended December 31, 2021. In order
5344	5344
5345	5345
5346	5346
5347	5347
5348	5348
5349	5349	SB3949 - 148 - LRB103 40603 LNS 73240 b
5350	5350
5351	5351
5352	5352	SB3949- 149 -LRB103 40603 LNS 73240 b SB3949 - 149 - LRB103 40603 LNS 73240 b
5353	5353	SB3949 - 149 - LRB103 40603 LNS 73240 b
5354	5354	1 to achieve these allocation percentages between or among
5355	5355	2 the electric utilities, the Agency shall require each
5356	5356	3 applicant that is selected in the procurement event to
5357	5357	4 enter into a contract with each electric utility for the
5358	5358	5 sale and purchase of renewable energy credits from each
5359	5359	6 new renewable energy facility to be constructed and
5360	5360	7 operated by the applicant, with the sale and purchase
5361	5361	8 obligations under the contracts to aggregate to the total
5362	5362	9 number of renewable energy credits per year to be supplied
5363	5363	10 by the applicant from the new renewable energy facility.
5364	5364	11 (7) The Agency shall submit its proposed selection of
5365	5365	12 applicants, new renewable energy facilities to be
5366	5366	13 constructed, and renewable energy credit amounts for each
5367	5367	14 procurement event to the Commission for approval. The
5368	5368	15 Commission shall, within 2 business days after receipt of
5369	5369	16 the Agency's proposed selections, approve the proposed
5370	5370	17 selections if it determines that the applicants and the
5371	5371	18 new renewable energy facilities to be constructed meet the
5372	5372	19 selection criteria set forth in this subsection (c-5) and
5373	5373	20 that the Agency seeks approval for contracts of applicable
5374	5374	21 durations aggregating to no more than the maximum amount
5375	5375	22 of renewable energy credits per year authorized by this
5376	5376	23 subsection (c-5) for the procurement event, at a price of
5377	5377	24 $30 per renewable energy credit.
5378	5378	25 (8) The Agency, in conjunction with its procurement
5379	5379	26 administrator if one is retained, the electric utilities,
5380	5380
5381	5381
5382	5382
5383	5383
5384	5384
5385	5385	SB3949 - 149 - LRB103 40603 LNS 73240 b
5386	5386
5387	5387
5388	5388	SB3949- 150 -LRB103 40603 LNS 73240 b SB3949 - 150 - LRB103 40603 LNS 73240 b
5389	5389	SB3949 - 150 - LRB103 40603 LNS 73240 b
5390	5390	1 and potential applicants for contracts to produce and
5391	5391	2 supply renewable energy credits pursuant to this
5392	5392	3 subsection (c-5), shall develop a standard form contract
5393	5393	4 for the sale, delivery and purchase of renewable energy
5394	5394	5 credits pursuant to this subsection (c-5). Each contract
5395	5395	6 resulting from the first procurement event shall allow for
5396	5396	7 a commercial operation date for the new renewable energy
5397	5397	8 facility of either June 1, 2023 or June 1, 2024, with such
5398	5398	9 dates subject to adjustment as provided in this paragraph.
5399	5399	10 Each contract resulting from the second procurement event
5400	5400	11 shall provide for a commercial operation date on June 1
5401	5401	12 next occurring up to 48 months after execution of the
5402	5402	13 contract. Each contract shall provide that the owner shall
5403	5403	14 receive payments for renewable energy credits for the
5404	5404	15 applicable durations beginning with the commercial
5405	5405	16 operation date of the new renewable energy facility. The
5406	5406	17 form contract shall provide for adjustments to the
5407	5407	18 commercial operation and payment start dates as needed due
5408	5408	19 to any delays in completing the procurement and
5409	5409	20 contracting processes, in finalizing interconnection
5410	5410	21 agreements and installing interconnection facilities, and
5411	5411	22 in obtaining other necessary governmental permits and
5412	5412	23 approvals. The form contract shall be, to the maximum
5413	5413	24 extent possible, consistent with standard electric
5414	5414	25 industry contracts for sale, delivery, and purchase of
5415	5415	26 renewable energy credits while taking into account the
5416	5416
5417	5417
5418	5418
5419	5419
5420	5420
5421	5421	SB3949 - 150 - LRB103 40603 LNS 73240 b
5422	5422
5423	5423
5424	5424	SB3949- 151 -LRB103 40603 LNS 73240 b SB3949 - 151 - LRB103 40603 LNS 73240 b
5425	5425	SB3949 - 151 - LRB103 40603 LNS 73240 b
5426	5426	1 specific requirements of this subsection (c-5). The form
5427	5427	2 contract shall provide for over-delivery and
5428	5428	3 under-delivery of renewable energy credits within
5429	5429	4 reasonable ranges during each 12-month period and penalty,
5430	5430	5 default, and enforcement provisions for failure of the
5431	5431	6 selling party to deliver renewable energy credits as
5432	5432	7 specified in the contract and to comply with the
5433	5433	8 requirements of this subsection (c-5). The standard form
5434	5434	9 contract shall specify that all renewable energy credits
5435	5435	10 delivered to the electric utility pursuant to the contract
5436	5436	11 shall be retired. The Agency shall make the proposed
5437	5437	12 contracts available for a reasonable period for comment by
5438	5438	13 potential applicants, and shall publish the final form
5439	5439	14 contract at least 30 days before the date of the first
5440	5440	15 procurement event.
5441	5441	16 (9) Coal to Solar and Energy Storage Initiative
5442	5442	17 Charge.
5443	5443	18 (A) By no later than July 1, 2022, each electric
5444	5444	19 utility that served more than 300,000 retail customers
5445	5445	20 in this State as of January 1, 2019 shall file a tariff
5446	5446	21 with the Commission for the billing and collection of
5447	5447	22 a Coal to Solar and Energy Storage Initiative Charge
5448	5448	23 in accordance with subsection (i-5) of Section 16-108
5449	5449	24 of the Public Utilities Act, with such tariff to be
5450	5450	25 effective, following review and approval or
5451	5451	26 modification by the Commission, beginning January 1,
5452	5452
5453	5453
5454	5454
5455	5455
5456	5456
5457	5457	SB3949 - 151 - LRB103 40603 LNS 73240 b
5458	5458
5459	5459
5460	5460	SB3949- 152 -LRB103 40603 LNS 73240 b SB3949 - 152 - LRB103 40603 LNS 73240 b
5461	5461	SB3949 - 152 - LRB103 40603 LNS 73240 b
5462	5462	1 2023. The tariff shall provide for the calculation and
5463	5463	2 setting of the electric utility's Coal to Solar and
5464	5464	3 Energy Storage Initiative Charge to collect revenues
5465	5465	4 estimated to be sufficient, in the aggregate, (i) to
5466	5466	5 enable the electric utility to pay for the renewable
5467	5467	6 energy credits it has contracted to purchase in the
5468	5468	7 delivery year beginning June 1, 2023 and each delivery
5469	5469	8 year thereafter from new renewable energy facilities
5470	5470	9 located at the sites of qualifying electric generating
5471	5471	10 facilities, and (ii) to fund the grant payments to be
5472	5472	11 made in each delivery year by the Department of
5473	5473	12 Commerce and Economic Opportunity, or any successor
5474	5474	13 department or agency, which shall be referred to in
5475	5475	14 this subsection (c-5) as the Department, pursuant to
5476	5476	15 paragraph (10) of this subsection (c-5). The electric
5477	5477	16 utility's tariff shall provide for the billing and
5478	5478	17 collection of the Coal to Solar and Energy Storage
5479	5479	18 Initiative Charge on each kilowatthour of electricity
5480	5480	19 delivered to its delivery services customers within
5481	5481	20 its service territory and shall provide for an annual
5482	5482	21 reconciliation of revenues collected with actual
5483	5483	22 costs, in accordance with subsection (i-5) of Section
5484	5484	23 16-108 of the Public Utilities Act.
5485	5485	24 (B) Each electric utility shall remit on a monthly
5486	5486	25 basis to the State Treasurer, for deposit in the Coal
5487	5487	26 to Solar and Energy Storage Initiative Fund provided
5488	5488
5489	5489
5490	5490
5491	5491
5492	5492
5493	5493	SB3949 - 152 - LRB103 40603 LNS 73240 b
5494	5494
5495	5495
5496	5496	SB3949- 153 -LRB103 40603 LNS 73240 b SB3949 - 153 - LRB103 40603 LNS 73240 b
5497	5497	SB3949 - 153 - LRB103 40603 LNS 73240 b
5498	5498	1 for in this subsection (c-5), the electric utility's
5499	5499	2 collections of the Coal to Solar and Energy Storage
5500	5500	3 Initiative Charge in the amount estimated to be needed
5501	5501	4 by the Department for grant payments pursuant to grant
5502	5502	5 contracts entered into by the Department pursuant to
5503	5503	6 paragraph (10) of this subsection (c-5).
5504	5504	7 (10) Coal to Solar and Energy Storage Initiative Fund.
5505	5505	8 (A) The Coal to Solar and Energy Storage
5506	5506	9 Initiative Fund is established as a special fund in
5507	5507	10 the State treasury. The Coal to Solar and Energy
5508	5508	11 Storage Initiative Fund is authorized to receive, by
5509	5509	12 statutory deposit, that portion specified in item (B)
5510	5510	13 of paragraph (9) of this subsection (c-5) of moneys
5511	5511	14 collected by electric utilities through imposition of
5512	5512	15 the Coal to Solar and Energy Storage Initiative Charge
5513	5513	16 required by this subsection (c-5). The Coal to Solar
5514	5514	17 and Energy Storage Initiative Fund shall be
5515	5515	18 administered by the Department to provide grants to
5516	5516	19 support the installation and operation of energy
5517	5517	20 storage facilities at the sites of qualifying electric
5518	5518	21 generating facilities meeting the criteria specified
5519	5519	22 in this paragraph (10).
5520	5520	23 (B) The Coal to Solar and Energy Storage
5521	5521	24 Initiative Fund shall not be subject to sweeps,
5522	5522	25 administrative charges, or chargebacks, including, but
5523	5523	26 not limited to, those authorized under Section 8h of
5524	5524
5525	5525
5526	5526
5527	5527
5528	5528
5529	5529	SB3949 - 153 - LRB103 40603 LNS 73240 b
5530	5530
5531	5531
5532	5532	SB3949- 154 -LRB103 40603 LNS 73240 b SB3949 - 154 - LRB103 40603 LNS 73240 b
5533	5533	SB3949 - 154 - LRB103 40603 LNS 73240 b
5534	5534	1 the State Finance Act, that would in any way result in
5535	5535	2 the transfer of those funds from the Coal to Solar and
5536	5536	3 Energy Storage Initiative Fund to any other fund of
5537	5537	4 this State or in having any such funds utilized for any
5538	5538	5 purpose other than the express purposes set forth in
5539	5539	6 this paragraph (10).
5540	5540	7 (C) The Department shall utilize up to
5541	5541	8 $280,500,000 in the Coal to Solar and Energy Storage
5542	5542	9 Initiative Fund for grants, assuming sufficient
5543	5543	10 qualifying applicants, to support installation of
5544	5544	11 energy storage facilities at the sites of up to 3
5545	5545	12 qualifying electric generating facilities located in
5546	5546	13 the Midcontinent Independent System Operator, Inc.,
5547	5547	14 region in Illinois and the sites of up to 2 qualifying
5548	5548	15 electric generating facilities located in the PJM
5549	5549	16 Interconnection, LLC region in Illinois that meet the
5550	5550	17 criteria set forth in this subparagraph (C). The
5551	5551	18 criteria for receipt of a grant pursuant to this
5552	5552	19 subparagraph (C) are as follows:
5553	5553	20 (1) the electric generating facility at the
5554	5554	21 site has, or had prior to retirement, an electric
5555	5555	22 generating capacity of at least 150 megawatts;
5556	5556	23 (2) the electric generating facility burns (or
5557	5557	24 burned prior to retirement) coal as its primary
5558	5558	25 source of fuel;
5559	5559	26 (3) if the electric generating facility is
5560	5560
5561	5561
5562	5562
5563	5563
5564	5564
5565	5565	SB3949 - 154 - LRB103 40603 LNS 73240 b
5566	5566
5567	5567
5568	5568	SB3949- 155 -LRB103 40603 LNS 73240 b SB3949 - 155 - LRB103 40603 LNS 73240 b
5569	5569	SB3949 - 155 - LRB103 40603 LNS 73240 b
5570	5570	1 retired, it was retired subsequent to January 1,
5571	5571	2 2016;
5572	5572	3 (4) the owner of the electric generating
5573	5573	4 facility has not been selected by the Agency
5574	5574	5 pursuant to this subsection (c-5) of this Section
5575	5575	6 to enter into a contract to sell renewable energy
5576	5576	7 credits to one or more electric utilities from a
5577	5577	8 new renewable energy facility located or to be
5578	5578	9 located at or adjacent to the site at which the
5579	5579	10 electric generating facility is located;
5580	5580	11 (5) the electric generating facility located
5581	5581	12 at the site was at one time owned, in whole or in
5582	5582	13 part, by a public utility as defined in Section
5583	5583	14 3-105 of the Public Utilities Act;
5584	5584	15 (6) the electric generating facility at the
5585	5585	16 site is not owned by (i) an electric cooperative
5586	5586	17 as defined in Section 3-119 of the Public
5587	5587	18 Utilities Act, or (ii) an entity described in
5588	5588	19 subsection (b)(1) of Section 3-105 of the Public
5589	5589	20 Utilities Act, or an association or consortium of
5590	5590	21 or an entity owned by entities described in items
5591	5591	22 (i) or (ii);
5592	5592	23 (7) the proposed energy storage facility at
5593	5593	24 the site will have energy storage capacity of at
5594	5594	25 least 37 megawatts;
5595	5595	26 (8) the owner commits to place the energy
5596	5596
5597	5597
5598	5598
5599	5599
5600	5600
5601	5601	SB3949 - 155 - LRB103 40603 LNS 73240 b
5602	5602
5603	5603
5604	5604	SB3949- 156 -LRB103 40603 LNS 73240 b SB3949 - 156 - LRB103 40603 LNS 73240 b
5605	5605	SB3949 - 156 - LRB103 40603 LNS 73240 b
5606	5606	1 storage facility into commercial operation on
5607	5607	2 either June 1, 2023, June 1, 2024, or June 1, 2025,
5608	5608	3 with such date subject to adjustment as needed due
5609	5609	4 to any delays in completing the grant contracting
5610	5610	5 process, in finalizing interconnection agreements
5611	5611	6 and in installing interconnection facilities, and
5612	5612	7 in obtaining necessary governmental permits and
5613	5613	8 approvals;
5614	5614	9 (9) the owner agrees that the new energy
5615	5615	10 storage facility will be constructed or installed
5616	5616	11 by a qualified entity or entities consistent with
5617	5617	12 the requirements of subsection (g) of Section
5618	5618	13 16-128A of the Public Utilities Act and any rules
5619	5619	14 adopted under that Section;
5620	5620	15 (10) the owner agrees that personnel operating
5621	5621	16 the energy storage facility will have the
5622	5622	17 requisite skills, knowledge, training, experience,
5623	5623	18 and competence, which may be demonstrated by
5624	5624	19 completion or current participation and ultimate
5625	5625	20 completion by employees of an accredited or
5626	5626	21 otherwise recognized apprenticeship program for
5627	5627	22 the employee's particular craft, trade, or skill,
5628	5628	23 including through training and education courses
5629	5629	24 and opportunities offered by the owner to
5630	5630	25 employees of the coal-fueled electric generating
5631	5631	26 facility or by previous employment experience
5632	5632
5633	5633
5634	5634
5635	5635
5636	5636
5637	5637	SB3949 - 156 - LRB103 40603 LNS 73240 b
5638	5638
5639	5639
5640	5640	SB3949- 157 -LRB103 40603 LNS 73240 b SB3949 - 157 - LRB103 40603 LNS 73240 b
5641	5641	SB3949 - 157 - LRB103 40603 LNS 73240 b
5642	5642	1 performing the employee's particular work skill or
5643	5643	2 function;
5644	5644	3 (11) the owner commits that not less than the
5645	5645	4 prevailing wage, as determined pursuant to the
5646	5646	5 Prevailing Wage Act, will be paid to the owner's
5647	5647	6 employees engaged in construction activities
5648	5648	7 associated with the new energy storage facility
5649	5649	8 and to the employees of the owner's contractors
5650	5650	9 engaged in construction activities associated with
5651	5651	10 the new energy storage facility, and that, on or
5652	5652	11 before the commercial operation date of the new
5653	5653	12 energy storage facility, the owner shall file a
5654	5654	13 report with the Department certifying that the
5655	5655	14 requirements of this subparagraph (11) have been
5656	5656	15 met; and
5657	5657	16 (12) the owner commits that if selected to
5658	5658	17 receive a grant, it will negotiate a project labor
5659	5659	18 agreement for the construction of the new energy
5660	5660	19 storage facility that includes provisions
5661	5661	20 requiring the parties to the agreement to work
5662	5662	21 together to establish diversity threshold
5663	5663	22 requirements and to ensure best efforts to meet
5664	5664	23 diversity targets, improve diversity at the
5665	5665	24 applicable job site, create diverse apprenticeship
5666	5666	25 opportunities, and create opportunities to employ
5667	5667	26 former coal-fired power plant workers.
5668	5668
5669	5669
5670	5670
5671	5671
5672	5672
5673	5673	SB3949 - 157 - LRB103 40603 LNS 73240 b
5674	5674
5675	5675
5676	5676	SB3949- 158 -LRB103 40603 LNS 73240 b SB3949 - 158 - LRB103 40603 LNS 73240 b
5677	5677	SB3949 - 158 - LRB103 40603 LNS 73240 b
5678	5678	1 The Department shall accept applications for this
5679	5679	2 grant program until March 31, 2022 and shall announce
5680	5680	3 the award of grants no later than June 1, 2022. The
5681	5681	4 Department shall make the grant payments to a
5682	5682	5 recipient in equal annual amounts for 10 years
5683	5683	6 following the date the energy storage facility is
5684	5684	7 placed into commercial operation. The annual grant
5685	5685	8 payments to a qualifying energy storage facility shall
5686	5686	9 be $110,000 per megawatt of energy storage capacity,
5687	5687	10 with total annual grant payments pursuant to this
5688	5688	11 subparagraph (C) for qualifying energy storage
5689	5689	12 facilities not to exceed $28,050,000 in any year.
5690	5690	13 (D) Grants of funding for energy storage
5691	5691	14 facilities pursuant to subparagraph (C) of this
5692	5692	15 paragraph (10), from the Coal to Solar and Energy
5693	5693	16 Storage Initiative Fund, shall be memorialized in
5694	5694	17 grant contracts between the Department and the
5695	5695	18 recipient. The grant contracts shall specify the date
5696	5696	19 or dates in each year on which the annual grant
5697	5697	20 payments shall be paid.
5698	5698	21 (E) All disbursements from the Coal to Solar and
5699	5699	22 Energy Storage Initiative Fund shall be made only upon
5700	5700	23 warrants of the Comptroller drawn upon the Treasurer
5701	5701	24 as custodian of the Fund upon vouchers signed by the
5702	5702	25 Director of the Department or by the person or persons
5703	5703	26 designated by the Director of the Department for that
5704	5704
5705	5705
5706	5706
5707	5707
5708	5708
5709	5709	SB3949 - 158 - LRB103 40603 LNS 73240 b
5710	5710
5711	5711
5712	5712	SB3949- 159 -LRB103 40603 LNS 73240 b SB3949 - 159 - LRB103 40603 LNS 73240 b
5713	5713	SB3949 - 159 - LRB103 40603 LNS 73240 b
5714	5714	1 purpose. The Comptroller is authorized to draw the
5715	5715	2 warrants upon vouchers so signed. The Treasurer shall
5716	5716	3 accept all written warrants so signed and shall be
5717	5717	4 released from liability for all payments made on those
5718	5718	5 warrants.
5719	5719	6 (11) Diversity, equity, and inclusion plans.
5720	5720	7 (A) Each applicant selected in a procurement event
5721	5721	8 to contract to supply renewable energy credits in
5722	5722	9 accordance with this subsection (c-5) and each owner
5723	5723	10 selected by the Department to receive a grant or
5724	5724	11 grants to support the construction and operation of a
5725	5725	12 new energy storage facility or facilities in
5726	5726	13 accordance with this subsection (c-5) shall, within 60
5727	5727	14 days following the Commission's approval of the
5728	5728	15 applicant to contract to supply renewable energy
5729	5729	16 credits or within 60 days following execution of a
5730	5730	17 grant contract with the Department, as applicable,
5731	5731	18 submit to the Commission a diversity, equity, and
5732	5732	19 inclusion plan setting forth the applicant's or
5733	5733	20 owner's numeric goals for the diversity composition of
5734	5734	21 its supplier entities for the new renewable energy
5735	5735	22 facility or new energy storage facility, as
5736	5736	23 applicable, which shall be referred to for purposes of
5737	5737	24 this paragraph (11) as the project, and the
5738	5738	25 applicant's or owner's action plan and schedule for
5739	5739	26 achieving those goals.
5740	5740
5741	5741
5742	5742
5743	5743
5744	5744
5745	5745	SB3949 - 159 - LRB103 40603 LNS 73240 b
5746	5746
5747	5747
5748	5748	SB3949- 160 -LRB103 40603 LNS 73240 b SB3949 - 160 - LRB103 40603 LNS 73240 b
5749	5749	SB3949 - 160 - LRB103 40603 LNS 73240 b
5750	5750	1 (B) For purposes of this paragraph (11), diversity
5751	5751	2 composition shall be based on the percentage, which
5752	5752	3 shall be a minimum of 25%, of eligible expenditures
5753	5753	4 for contract awards for materials and services (which
5754	5754	5 shall be defined in the plan) to business enterprises
5755	5755	6 owned by minority persons, women, or persons with
5756	5756	7 disabilities as defined in Section 2 of the Business
5757	5757	8 Enterprise for Minorities, Women, and Persons with
5758	5758	9 Disabilities Act, to LGBTQ business enterprises, to
5759	5759	10 veteran-owned business enterprises, and to business
5760	5760	11 enterprises located in environmental justice
5761	5761	12 communities. The diversity composition goals of the
5762	5762	13 plan may include eligible expenditures in areas for
5763	5763	14 vendor or supplier opportunities in addition to
5764	5764	15 development and construction of the project, and may
5765	5765	16 exclude from eligible expenditures materials and
5766	5766	17 services with limited market availability, limited
5767	5767	18 production and availability from suppliers in the
5768	5768	19 United States, such as solar panels and storage
5769	5769	20 batteries, and material and services that are subject
5770	5770	21 to critical energy infrastructure or cybersecurity
5771	5771	22 requirements or restrictions. The plan may provide
5772	5772	23 that the diversity composition goals may be met
5773	5773	24 through Tier 1 Direct or Tier 2 subcontracting
5774	5774	25 expenditures or a combination thereof for the project.
5775	5775	26 (C) The plan shall provide for, but not be limited
5776	5776
5777	5777
5778	5778
5779	5779
5780	5780
5781	5781	SB3949 - 160 - LRB103 40603 LNS 73240 b
5782	5782
5783	5783
5784	5784	SB3949- 161 -LRB103 40603 LNS 73240 b SB3949 - 161 - LRB103 40603 LNS 73240 b
5785	5785	SB3949 - 161 - LRB103 40603 LNS 73240 b
5786	5786	1 to: (i) internal initiatives, including multi-tier
5787	5787	2 initiatives, by the applicant or owner, or by its
5788	5788	3 engineering, procurement and construction contractor
5789	5789	4 if one is used for the project, which for purposes of
5790	5790	5 this paragraph (11) shall be referred to as the EPC
5791	5791	6 contractor, to enable diverse businesses to be
5792	5792	7 considered fairly for selection to provide materials
5793	5793	8 and services; (ii) requirements for the applicant or
5794	5794	9 owner or its EPC contractor to proactively solicit and
5795	5795	10 utilize diverse businesses to provide materials and
5796	5796	11 services; and (iii) requirements for the applicant or
5797	5797	12 owner or its EPC contractor to hire a diverse
5798	5798	13 workforce for the project. The plan shall include a
5799	5799	14 description of the applicant's or owner's diversity
5800	5800	15 recruiting efforts both for the project and for other
5801	5801	16 areas of the applicant's or owner's business
5802	5802	17 operations. The plan shall provide for the imposition
5803	5803	18 of financial penalties on the applicant's or owner's
5804	5804	19 EPC contractor for failure to exercise best efforts to
5805	5805	20 comply with and execute the EPC contractor's diversity
5806	5806	21 obligations under the plan. The plan may provide for
5807	5807	22 the applicant or owner to set aside a portion of the
5808	5808	23 work on the project to serve as an incubation program
5809	5809	24 for qualified businesses, as specified in the plan,
5810	5810	25 owned by minority persons, women, persons with
5811	5811	26 disabilities, LGBTQ persons, and veterans, and
5812	5812
5813	5813
5814	5814
5815	5815
5816	5816
5817	5817	SB3949 - 161 - LRB103 40603 LNS 73240 b
5818	5818
5819	5819
5820	5820	SB3949- 162 -LRB103 40603 LNS 73240 b SB3949 - 162 - LRB103 40603 LNS 73240 b
5821	5821	SB3949 - 162 - LRB103 40603 LNS 73240 b
5822	5822	1 businesses located in environmental justice
5823	5823	2 communities, seeking to enter the renewable energy
5824	5824	3 industry.
5825	5825	4 (D) The applicant or owner may submit a revised or
5826	5826	5 updated plan to the Commission from time to time as
5827	5827	6 circumstances warrant. The applicant or owner shall
5828	5828	7 file annual reports with the Commission detailing the
5829	5829	8 applicant's or owner's progress in implementing its
5830	5830	9 plan and achieving its goals and any modifications the
5831	5831	10 applicant or owner has made to its plan to better
5832	5832	11 achieve its diversity, equity and inclusion goals. The
5833	5833	12 applicant or owner shall file a final report on the
5834	5834	13 fifth June 1 following the commercial operation date
5835	5835	14 of the new renewable energy resource or new energy
5836	5836	15 storage facility, but the applicant or owner shall
5837	5837	16 thereafter continue to be subject to applicable
5838	5838	17 reporting requirements of Section 5-117 of the Public
5839	5839	18 Utilities Act.
5840	5840	19 (c-10) Equity accountability system. It is the purpose of
5841	5841	20 this subsection (c-10) to create an equity accountability
5842	5842	21 system, which includes the minimum equity standards for all
5843	5843	22 renewable energy procurements, the equity category of the
5844	5844	23 Adjustable Block Program, and the equity prioritization for
5845	5845	24 noncompetitive procurements, that is successful in advancing
5846	5846	25 priority access to the clean energy economy for businesses and
5847	5847	26 workers from communities that have been excluded from economic
5848	5848
5849	5849
5850	5850
5851	5851
5852	5852
5853	5853	SB3949 - 162 - LRB103 40603 LNS 73240 b
5854	5854
5855	5855
5856	5856	SB3949- 163 -LRB103 40603 LNS 73240 b SB3949 - 163 - LRB103 40603 LNS 73240 b
5857	5857	SB3949 - 163 - LRB103 40603 LNS 73240 b
5858	5858	1 opportunities in the energy sector, have been subject to
5859	5859	2 disproportionate levels of pollution, and have
5860	5860	3 disproportionately experienced negative public health
5861	5861	4 outcomes. Further, it is the purpose of this subsection to
5862	5862	5 ensure that this equity accountability system is successful in
5863	5863	6 advancing equity across Illinois by providing access to the
5864	5864	7 clean energy economy for businesses and workers from
5865	5865	8 communities that have been historically excluded from economic
5866	5866	9 opportunities in the energy sector, have been subject to
5867	5867	10 disproportionate levels of pollution, and have
5868	5868	11 disproportionately experienced negative public health
5869	5869	12 outcomes.
5870	5870	13 (1) Minimum equity standards. The Agency shall create
5871	5871	14 programs with the purpose of increasing access to and
5872	5872	15 development of equity eligible contractors, who are prime
5873	5873	16 contractors and subcontractors, across all of the programs
5874	5874	17 it manages. All applications for renewable energy credit
5875	5875	18 procurements shall comply with specific minimum equity
5876	5876	19 commitments. Starting in the delivery year immediately
5877	5877	20 following the next long-term renewable resources
5878	5878	21 procurement plan, at least 10% of the project workforce
5879	5879	22 for each entity participating in a procurement program
5880	5880	23 outlined in this subsection (c-10) must be done by equity
5881	5881	24 eligible persons or equity eligible contractors. The
5882	5882	25 Agency shall increase the minimum percentage each delivery
5883	5883	26 year thereafter by increments that ensure a statewide
5884	5884
5885	5885
5886	5886
5887	5887
5888	5888
5889	5889	SB3949 - 163 - LRB103 40603 LNS 73240 b
5890	5890
5891	5891
5892	5892	SB3949- 164 -LRB103 40603 LNS 73240 b SB3949 - 164 - LRB103 40603 LNS 73240 b
5893	5893	SB3949 - 164 - LRB103 40603 LNS 73240 b
5894	5894	1 average of 30% of the project workforce for each entity
5895	5895	2 participating in a procurement program is done by equity
5896	5896	3 eligible persons or equity eligible contractors by 2030.
5897	5897	4 The Agency shall propose a schedule of percentage
5898	5898	5 increases to the minimum equity standards in its draft
5899	5899	6 revised renewable energy resources procurement plan
5900	5900	7 submitted to the Commission for approval pursuant to
5901	5901	8 paragraph (5) of subsection (b) of Section 16-111.5 of the
5902	5902	9 Public Utilities Act. In determining these annual
5903	5903	10 increases, the Agency shall have the discretion to
5904	5904	11 establish different minimum equity standards for different
5905	5905	12 types of procurements and different regions of the State
5906	5906	13 if the Agency finds that doing so will further the
5907	5907	14 purposes of this subsection (c-10). The proposed schedule
5908	5908	15 of annual increases shall be revisited and updated on an
5909	5909	16 annual basis. Revisions shall be developed with
5910	5910	17 stakeholder input, including from equity eligible persons,
5911	5911	18 equity eligible contractors, clean energy industry
5912	5912	19 representatives, and community-based organizations that
5913	5913	20 work with such persons and contractors.
5914	5914	21 (A) At the start of each delivery year, the Agency
5915	5915	22 shall require a compliance plan from each entity
5916	5916	23 participating in a procurement program of subsection
5917	5917	24 (c) of this Section that demonstrates how they will
5918	5918	25 achieve compliance with the minimum equity standard
5919	5919	26 percentage for work completed in that delivery year.
5920	5920
5921	5921
5922	5922
5923	5923
5924	5924
5925	5925	SB3949 - 164 - LRB103 40603 LNS 73240 b
5926	5926
5927	5927
5928	5928	SB3949- 165 -LRB103 40603 LNS 73240 b SB3949 - 165 - LRB103 40603 LNS 73240 b
5929	5929	SB3949 - 165 - LRB103 40603 LNS 73240 b
5930	5930	1 If an entity applies for its approved vendor or
5931	5931	2 designee status between delivery years, the Agency
5932	5932	3 shall require a compliance plan at the time of
5933	5933	4 application.
5934	5934	5 (B) Halfway through each delivery year, the Agency
5935	5935	6 shall require each entity participating in a
5936	5936	7 procurement program to confirm that it will achieve
5937	5937	8 compliance in that delivery year, when applicable. The
5938	5938	9 Agency may offer corrective action plans to entities
5939	5939	10 that are not on track to achieve compliance.
5940	5940	11 (C) At the end of each delivery year, each entity
5941	5941	12 participating and completing work in that delivery
5942	5942	13 year in a procurement program of subsection (c) shall
5943	5943	14 submit a report to the Agency that demonstrates how it
5944	5944	15 achieved compliance with the minimum equity standards
5945	5945	16 percentage for that delivery year.
5946	5946	17 (D) The Agency shall prohibit participation in
5947	5947	18 procurement programs by an approved vendor or
5948	5948	19 designee, as applicable, or entities with which an
5949	5949	20 approved vendor or designee, as applicable, shares a
5950	5950	21 common parent company if an approved vendor or
5951	5951	22 designee, as applicable, failed to meet the minimum
5952	5952	23 equity standards for the prior delivery year. Waivers
5953	5953	24 approved for lack of equity eligible persons or equity
5954	5954	25 eligible contractors in a geographic area of a project
5955	5955	26 shall not count against the approved vendor or
5956	5956
5957	5957
5958	5958
5959	5959
5960	5960
5961	5961	SB3949 - 165 - LRB103 40603 LNS 73240 b
5962	5962
5963	5963
5964	5964	SB3949- 166 -LRB103 40603 LNS 73240 b SB3949 - 166 - LRB103 40603 LNS 73240 b
5965	5965	SB3949 - 166 - LRB103 40603 LNS 73240 b
5966	5966	1 designee. The Agency shall offer a corrective action
5967	5967	2 plan for any such entities to assist them in obtaining
5968	5968	3 compliance and shall allow continued access to
5969	5969	4 procurement programs upon an approved vendor or
5970	5970	5 designee demonstrating compliance.
5971	5971	6 (E) The Agency shall pursue efficiencies achieved
5972	5972	7 by combining with other approved vendor or designee
5973	5973	8 reporting.
5974	5974	9 (2) Equity accountability system within the Adjustable
5975	5975	10 Block program. The equity category described in item (vi)
5976	5976	11 of subparagraph (K) of subsection (c) is only available to
5977	5977	12 applicants that are equity eligible contractors.
5978	5978	13 (3) Equity accountability system within competitive
5979	5979	14 procurements. Through its long-term renewable resources
5980	5980	15 procurement plan, the Agency shall develop requirements
5981	5981	16 for ensuring that competitive procurement processes,
5982	5982	17 including utility-scale solar, utility-scale wind, and
5983	5983	18 brownfield site photovoltaic projects, advance the equity
5984	5984	19 goals of this subsection (c-10). Subject to Commission
5985	5985	20 approval, the Agency shall develop bid application
5986	5986	21 requirements and a bid evaluation methodology for ensuring
5987	5987	22 that utilization of equity eligible contractors, whether
5988	5988	23 as bidders or as participants on project development, is
5989	5989	24 optimized, including requiring that winning or successful
5990	5990	25 applicants for utility-scale projects are or will partner
5991	5991	26 with equity eligible contractors and giving preference to
5992	5992
5993	5993
5994	5994
5995	5995
5996	5996
5997	5997	SB3949 - 166 - LRB103 40603 LNS 73240 b
5998	5998
5999	5999
6000	6000	SB3949- 167 -LRB103 40603 LNS 73240 b SB3949 - 167 - LRB103 40603 LNS 73240 b
6001	6001	SB3949 - 167 - LRB103 40603 LNS 73240 b
6002	6002	1 bids through which a higher portion of contract value
6003	6003	2 flows to equity eligible contractors. To the extent
6004	6004	3 practicable, entities participating in competitive
6005	6005	4 procurements shall also be required to meet all the equity
6006	6006	5 accountability requirements for approved vendors and their
6007	6007	6 designees under this subsection (c-10). In developing
6008	6008	7 these requirements, the Agency shall also consider whether
6009	6009	8 equity goals can be further advanced through additional
6010	6010	9 measures.
6011	6011	10 (4) In the first revision to the long-term renewable
6012	6012	11 energy resources procurement plan and each revision
6013	6013	12 thereafter, the Agency shall include the following:
6014	6014	13 (A) The current status and number of equity
6015	6015	14 eligible contractors listed in the Energy Workforce
6016	6016	15 Equity Database designed in subsection (c-25),
6017	6017	16 including the number of equity eligible contractors
6018	6018	17 with current certifications as issued by the Agency.
6019	6019	18 (B) A mechanism for measuring, tracking, and
6020	6020	19 reporting project workforce at the approved vendor or
6021	6021	20 designee level, as applicable, which shall include a
6022	6022	21 measurement methodology and records to be made
6023	6023	22 available for audit by the Agency or the Program
6024	6024	23 Administrator.
6025	6025	24 (C) A program for approved vendors, designees,
6026	6026	25 eligible persons, and equity eligible contractors to
6027	6027	26 receive trainings, guidance, and other support from
6028	6028
6029	6029
6030	6030
6031	6031
6032	6032
6033	6033	SB3949 - 167 - LRB103 40603 LNS 73240 b
6034	6034
6035	6035
6036	6036	SB3949- 168 -LRB103 40603 LNS 73240 b SB3949 - 168 - LRB103 40603 LNS 73240 b
6037	6037	SB3949 - 168 - LRB103 40603 LNS 73240 b
6038	6038	1 the Agency or its designee regarding the equity
6039	6039	2 category outlined in item (vi) of subparagraph (K) of
6040	6040	3 paragraph (1) of subsection (c) and in meeting the
6041	6041	4 minimum equity standards of this subsection (c-10).
6042	6042	5 (D) A process for certifying equity eligible
6043	6043	6 contractors and equity eligible persons. The
6044	6044	7 certification process shall coordinate with the Energy
6045	6045	8 Workforce Equity Database set forth in subsection
6046	6046	9 (c-25).
6047	6047	10 (E) An application for waiver of the minimum
6048	6048	11 equity standards of this subsection, which the Agency
6049	6049	12 shall have the discretion to grant in rare
6050	6050	13 circumstances. The Agency may grant such a waiver
6051	6051	14 where the applicant provides evidence of significant
6052	6052	15 efforts toward meeting the minimum equity commitment,
6053	6053	16 including: use of the Energy Workforce Equity
6054	6054	17 Database; efforts to hire or contract with entities
6055	6055	18 that hire eligible persons; and efforts to establish
6056	6056	19 contracting relationships with eligible contractors.
6057	6057	20 The Agency shall support applicants in understanding
6058	6058	21 the Energy Workforce Equity Database and other
6059	6059	22 resources for pursuing compliance of the minimum
6060	6060	23 equity standards. Waivers shall be project-specific,
6061	6061	24 unless the Agency deems it necessary to grant a waiver
6062	6062	25 across a portfolio of projects, and in effect for no
6063	6063	26 longer than one year. Any waiver extension or
6064	6064
6065	6065
6066	6066
6067	6067
6068	6068
6069	6069	SB3949 - 168 - LRB103 40603 LNS 73240 b
6070	6070
6071	6071
6072	6072	SB3949- 169 -LRB103 40603 LNS 73240 b SB3949 - 169 - LRB103 40603 LNS 73240 b
6073	6073	SB3949 - 169 - LRB103 40603 LNS 73240 b
6074	6074	1 subsequent waiver request from an applicant shall be
6075	6075	2 subject to the requirements of this Section and shall
6076	6076	3 specify efforts made to reach compliance. When
6077	6077	4 considering whether to grant a waiver, and to what
6078	6078	5 extent, the Agency shall consider the degree to which
6079	6079	6 similarly situated applicants have been able to meet
6080	6080	7 these minimum equity commitments. For repeated waiver
6081	6081	8 requests for specific lack of eligible persons or
6082	6082	9 eligible contractors available, the Agency shall make
6083	6083	10 recommendations to target recruitment to add such
6084	6084	11 eligible persons or eligible contractors to the
6085	6085	12 database.
6086	6086	13 (5) The Agency shall collect information about work on
6087	6087	14 projects or portfolios of projects subject to these
6088	6088	15 minimum equity standards to ensure compliance with this
6089	6089	16 subsection (c-10). Reporting in furtherance of this
6090	6090	17 requirement may be combined with other annual reporting
6091	6091	18 requirements. Such reporting shall include proof of
6092	6092	19 certification of each equity eligible contractor or equity
6093	6093	20 eligible person during the applicable time period.
6094	6094	21 (6) The Agency shall keep confidential all information
6095	6095	22 and communication that provides private or personal
6096	6096	23 information.
6097	6097	24 (7) Modifications to the equity accountability system.
6098	6098	25 As part of the update of the long-term renewable resources
6099	6099	26 procurement plan to be initiated in 2023, or sooner if the
6100	6100
6101	6101
6102	6102
6103	6103
6104	6104
6105	6105	SB3949 - 169 - LRB103 40603 LNS 73240 b
6106	6106
6107	6107
6108	6108	SB3949- 170 -LRB103 40603 LNS 73240 b SB3949 - 170 - LRB103 40603 LNS 73240 b
6109	6109	SB3949 - 170 - LRB103 40603 LNS 73240 b
6110	6110	1 Agency deems necessary, the Agency shall determine the
6111	6111	2 extent to which the equity accountability system described
6112	6112	3 in this subsection (c-10) has advanced the goals of this
6113	6113	4 amendatory Act of the 102nd General Assembly, including
6114	6114	5 through the inclusion of equity eligible persons and
6115	6115	6 equity eligible contractors in renewable energy credit
6116	6116	7 projects. If the Agency finds that the equity
6117	6117	8 accountability system has failed to meet those goals to
6118	6118	9 its fullest potential, the Agency may revise the following
6119	6119	10 criteria for future Agency procurements: (A) the
6120	6120	11 percentage of project workforce, or other appropriate
6121	6121	12 workforce measure, certified as equity eligible persons or
6122	6122	13 equity eligible contractors; (B) definitions for equity
6123	6123	14 investment eligible persons and equity investment eligible
6124	6124	15 community; and (C) such other modifications necessary to
6125	6125	16 advance the goals of this amendatory Act of the 102nd
6126	6126	17 General Assembly effectively. Such revised criteria may
6127	6127	18 also establish distinct equity accountability systems for
6128	6128	19 different types of procurements or different regions of
6129	6129	20 the State if the Agency finds that doing so will further
6130	6130	21 the purposes of such programs. Revisions shall be
6131	6131	22 developed with stakeholder input, including from equity
6132	6132	23 eligible persons, equity eligible contractors, and
6133	6133	24 community-based organizations that work with such persons
6134	6134	25 and contractors.
6135	6135	26 (c-15) Racial discrimination elimination powers and
6136	6136
6137	6137
6138	6138
6139	6139
6140	6140
6141	6141	SB3949 - 170 - LRB103 40603 LNS 73240 b
6142	6142
6143	6143
6144	6144	SB3949- 171 -LRB103 40603 LNS 73240 b SB3949 - 171 - LRB103 40603 LNS 73240 b
6145	6145	SB3949 - 171 - LRB103 40603 LNS 73240 b
6146	6146	1 process.
6147	6147	2 (1) Purpose. It is the purpose of this subsection to
6148	6148	3 empower the Agency and other State actors to remedy racial
6149	6149	4 discrimination in Illinois' clean energy economy as
6150	6150	5 effectively and expediently as possible, including through
6151	6151	6 the use of race-conscious remedies, such as race-conscious
6152	6152	7 contracting and hiring goals, as consistent with State and
6153	6153	8 federal law.
6154	6154	9 (2) Racial disparity and discrimination review
6155	6155	10 process.
6156	6156	11 (A) Within one year after awarding contracts using
6157	6157	12 the equity actions processes established in this
6158	6158	13 Section, the Agency shall publish a report evaluating
6159	6159	14 the effectiveness of the equity actions point criteria
6160	6160	15 of this Section in increasing participation of equity
6161	6161	16 eligible persons and equity eligible contractors. The
6162	6162	17 report shall disaggregate participating workers and
6163	6163	18 contractors by race and ethnicity. The report shall be
6164	6164	19 forwarded to the Governor, the General Assembly, and
6165	6165	20 the Illinois Commerce Commission and be made available
6166	6166	21 to the public.
6167	6167	22 (B) As soon as is practicable thereafter, the
6168	6168	23 Agency, in consultation with the Department of
6169	6169	24 Commerce and Economic Opportunity, Department of
6170	6170	25 Labor, and other agencies that may be relevant, shall
6171	6171	26 commission and publish a disparity and availability
6172	6172
6173	6173
6174	6174
6175	6175
6176	6176
6177	6177	SB3949 - 171 - LRB103 40603 LNS 73240 b
6178	6178
6179	6179
6180	6180	SB3949- 172 -LRB103 40603 LNS 73240 b SB3949 - 172 - LRB103 40603 LNS 73240 b
6181	6181	SB3949 - 172 - LRB103 40603 LNS 73240 b
6182	6182	1 study that measures the presence and impact of
6183	6183	2 discrimination on minority businesses and workers in
6184	6184	3 Illinois' clean energy economy. The Agency may hire
6185	6185	4 consultants and experts to conduct the disparity and
6186	6186	5 availability study, with the retention of those
6187	6187	6 consultants and experts exempt from the requirements
6188	6188	7 of Section 20-10 of the Illinois Procurement Code. The
6189	6189	8 Illinois Power Agency shall forward a copy of its
6190	6190	9 findings and recommendations to the Governor, the
6191	6191	10 General Assembly, and the Illinois Commerce
6192	6192	11 Commission. If the disparity and availability study
6193	6193	12 establishes a strong basis in evidence that there is
6194	6194	13 discrimination in Illinois' clean energy economy, the
6195	6195	14 Agency, Department of Commerce and Economic
6196	6196	15 Opportunity, Department of Labor, Department of
6197	6197	16 Corrections, and other appropriate agencies shall take
6198	6198	17 appropriate remedial actions, including race-conscious
6199	6199	18 remedial actions as consistent with State and federal
6200	6200	19 law, to effectively remedy this discrimination. Such
6201	6201	20 remedies may include modification of the equity
6202	6202	21 accountability system as described in subsection
6203	6203	22 (c-10).
6204	6204	23 (c-20) Program data collection.
6205	6205	24 (1) Purpose. Data collection, data analysis, and
6206	6206	25 reporting are critical to ensure that the benefits of the
6207	6207	26 clean energy economy provided to Illinois residents and
6208	6208
6209	6209
6210	6210
6211	6211
6212	6212
6213	6213	SB3949 - 172 - LRB103 40603 LNS 73240 b
6214	6214
6215	6215
6216	6216	SB3949- 173 -LRB103 40603 LNS 73240 b SB3949 - 173 - LRB103 40603 LNS 73240 b
6217	6217	SB3949 - 173 - LRB103 40603 LNS 73240 b
6218	6218	1 businesses are equitably distributed across the State. The
6219	6219	2 Agency shall collect data from program applicants in order
6220	6220	3 to track and improve equitable distribution of benefits
6221	6221	4 across Illinois communities for all procurements the
6222	6222	5 Agency conducts. The Agency shall use this data to, among
6223	6223	6 other things, measure any potential impact of racial
6224	6224	7 discrimination on the distribution of benefits and provide
6225	6225	8 information necessary to correct any discrimination
6226	6226	9 through methods consistent with State and federal law.
6227	6227	10 (2) Agency collection of program data. The Agency
6228	6228	11 shall collect demographic and geographic data for each
6229	6229	12 entity awarded contracts under any Agency-administered
6230	6230	13 program.
6231	6231	14 (3) Required information to be collected. The Agency
6232	6232	15 shall collect the following information from applicants
6233	6233	16 and program participants where applicable:
6234	6234	17 (A) demographic information, including racial or
6235	6235	18 ethnic identity for real persons employed, contracted,
6236	6236	19 or subcontracted through the program and owners of
6237	6237	20 businesses or entities that apply to receive renewable
6238	6238	21 energy credits from the Agency;
6239	6239	22 (B) geographic location of the residency of real
6240	6240	23 persons employed, contracted, or subcontracted through
6241	6241	24 the program and geographic location of the
6242	6242	25 headquarters of the business or entity that applies to
6243	6243	26 receive renewable energy credits from the Agency; and
6244	6244
6245	6245
6246	6246
6247	6247
6248	6248
6249	6249	SB3949 - 173 - LRB103 40603 LNS 73240 b
6250	6250
6251	6251
6252	6252	SB3949- 174 -LRB103 40603 LNS 73240 b SB3949 - 174 - LRB103 40603 LNS 73240 b
6253	6253	SB3949 - 174 - LRB103 40603 LNS 73240 b
6254	6254	1 (C) any other information the Agency determines is
6255	6255	2 necessary for the purpose of achieving the purpose of
6256	6256	3 this subsection.
6257	6257	4 (4) Publication of collected information. The Agency
6258	6258	5 shall publish, at least annually, information on the
6259	6259	6 demographics of program participants on an aggregate
6260	6260	7 basis.
6261	6261	8 (5) Nothing in this subsection shall be interpreted to
6262	6262	9 limit the authority of the Agency, or other agency or
6263	6263	10 department of the State, to require or collect demographic
6264	6264	11 information from applicants of other State programs.
6265	6265	12 (c-25) Energy Workforce Equity Database.
6266	6266	13 (1) The Agency, in consultation with the Department of
6267	6267	14 Commerce and Economic Opportunity, shall create an Energy
6268	6268	15 Workforce Equity Database, and may contract with a third
6269	6269	16 party to do so ("database program administrator"). If the
6270	6270	17 Department decides to contract with a third party, that
6271	6271	18 third party shall be exempt from the requirements of
6272	6272	19 Section 20-10 of the Illinois Procurement Code. The Energy
6273	6273	20 Workforce Equity Database shall be a searchable database
6274	6274	21 of suppliers, vendors, and subcontractors for clean energy
6275	6275	22 industries that is:
6276	6276	23 (A) publicly accessible;
6277	6277	24 (B) easy for people to find and use;
6278	6278	25 (C) organized by company specialty or field;
6279	6279	26 (D) region-specific; and
6280	6280
6281	6281
6282	6282
6283	6283
6284	6284
6285	6285	SB3949 - 174 - LRB103 40603 LNS 73240 b
6286	6286
6287	6287
6288	6288	SB3949- 175 -LRB103 40603 LNS 73240 b SB3949 - 175 - LRB103 40603 LNS 73240 b
6289	6289	SB3949 - 175 - LRB103 40603 LNS 73240 b
6290	6290	1 (E) populated with information including, but not
6291	6291	2 limited to, contacts for suppliers, vendors, or
6292	6292	3 subcontractors who are minority and women-owned
6293	6293	4 business enterprise certified or who participate or
6294	6294	5 have participated in any of the programs described in
6295	6295	6 this Act.
6296	6296	7 (2) The Agency shall create an easily accessible,
6297	6297	8 public facing online tool using the database information
6298	6298	9 that includes, at a minimum, the following:
6299	6299	10 (A) a map of environmental justice and equity
6300	6300	11 investment eligible communities;
6301	6301	12 (B) job postings and recruiting opportunities;
6302	6302	13 (C) a means by which recruiting clean energy
6303	6303	14 companies can find and interact with current or former
6304	6304	15 participants of clean energy workforce training
6305	6305	16 programs;
6306	6306	17 (D) information on workforce training service
6307	6307	18 providers and training opportunities available to
6308	6308	19 prospective workers;
6309	6309	20 (E) renewable energy company diversity reporting;
6310	6310	21 (F) a list of equity eligible contractors with
6311	6311	22 their contact information, types of work performed,
6312	6312	23 and locations worked in;
6313	6313	24 (G) reporting on outcomes of the programs
6314	6314	25 described in the workforce programs of the Energy
6315	6315	26 Transition Act, including information such as, but not
6316	6316
6317	6317
6318	6318
6319	6319
6320	6320
6321	6321	SB3949 - 175 - LRB103 40603 LNS 73240 b
6322	6322
6323	6323
6324	6324	SB3949- 176 -LRB103 40603 LNS 73240 b SB3949 - 176 - LRB103 40603 LNS 73240 b
6325	6325	SB3949 - 176 - LRB103 40603 LNS 73240 b
6326	6326	1 limited to, retention rate, graduation rate, and
6327	6327	2 placement rates of trainees; and
6328	6328	3 (H) information about the Jobs and Environmental
6329	6329	4 Justice Grant Program, the Clean Energy Jobs and
6330	6330	5 Justice Fund, and other sources of capital.
6331	6331	6 (3) The Agency shall ensure the database is regularly
6332	6332	7 updated to ensure information is current and shall
6333	6333	8 coordinate with the Department of Commerce and Economic
6334	6334	9 Opportunity to ensure that it includes information on
6335	6335	10 individuals and entities that are or have participated in
6336	6336	11 the Clean Jobs Workforce Network Program, Clean Energy
6337	6337	12 Contractor Incubator Program, Returning Residents Clean
6338	6338	13 Jobs Training Program, or Clean Energy Primes Contractor
6339	6339	14 Accelerator Program.
6340	6340	15 (c-30) Enforcement of minimum equity standards. All
6341	6341	16 entities seeking renewable energy credits must submit an
6342	6342	17 annual report to demonstrate compliance with each of the
6343	6343	18 equity commitments required under subsection (c-10). If the
6344	6344	19 Agency concludes the entity has not met or maintained its
6345	6345	20 minimum equity standards required under the applicable
6346	6346	21 subparagraphs under subsection (c-10), the Agency shall deny
6347	6347	22 the entity's ability to participate in procurement programs in
6348	6348	23 subsection (c), including by withholding approved vendor or
6349	6349	24 designee status. The Agency may require the entity to enter
6350	6350	25 into a corrective action plan. An entity that is not
6351	6351	26 recertified for failing to meet required equity actions in
6352	6352
6353	6353
6354	6354
6355	6355
6356	6356
6357	6357	SB3949 - 176 - LRB103 40603 LNS 73240 b
6358	6358
6359	6359
6360	6360	SB3949- 177 -LRB103 40603 LNS 73240 b SB3949 - 177 - LRB103 40603 LNS 73240 b
6361	6361	SB3949 - 177 - LRB103 40603 LNS 73240 b
6362	6362	1 subparagraph (c-10) may reapply once they have a corrective
6363	6363	2 action plan and achieve compliance with the minimum equity
6364	6364	3 standards.
6365	6365	4 (d) Clean coal portfolio standard.
6366	6366	5 (1) The procurement plans shall include electricity
6367	6367	6 generated using clean coal. Each utility shall enter into
6368	6368	7 one or more sourcing agreements with the initial clean
6369	6369	8 coal facility, as provided in paragraph (3) of this
6370	6370	9 subsection (d), covering electricity generated by the
6371	6371	10 initial clean coal facility representing at least 5% of
6372	6372	11 each utility's total supply to serve the load of eligible
6373	6373	12 retail customers in 2015 and each year thereafter, as
6374	6374	13 described in paragraph (3) of this subsection (d), subject
6375	6375	14 to the limits specified in paragraph (2) of this
6376	6376	15 subsection (d). It is the goal of the State that by January
6377	6377	16 1, 2025, 25% of the electricity used in the State shall be
6378	6378	17 generated by cost-effective clean coal facilities. For
6379	6379	18 purposes of this subsection (d), "cost-effective" means
6380	6380	19 that the expenditures pursuant to such sourcing agreements
6381	6381	20 do not cause the limit stated in paragraph (2) of this
6382	6382	21 subsection (d) to be exceeded and do not exceed cost-based
6383	6383	22 benchmarks, which shall be developed to assess all
6384	6384	23 expenditures pursuant to such sourcing agreements covering
6385	6385	24 electricity generated by clean coal facilities, other than
6386	6386	25 the initial clean coal facility, by the procurement
6387	6387	26 administrator, in consultation with the Commission staff,
6388	6388
6389	6389
6390	6390
6391	6391
6392	6392
6393	6393	SB3949 - 177 - LRB103 40603 LNS 73240 b
6394	6394
6395	6395
6396	6396	SB3949- 178 -LRB103 40603 LNS 73240 b SB3949 - 178 - LRB103 40603 LNS 73240 b
6397	6397	SB3949 - 178 - LRB103 40603 LNS 73240 b
6398	6398	1 Agency staff, and the procurement monitor and shall be
6399	6399	2 subject to Commission review and approval.
6400	6400	3 A utility party to a sourcing agreement shall
6401	6401	4 immediately retire any emission credits that it receives
6402	6402	5 in connection with the electricity covered by such
6403	6403	6 agreement.
6404	6404	7 Utilities shall maintain adequate records documenting
6405	6405	8 the purchases under the sourcing agreement to comply with
6406	6406	9 this subsection (d) and shall file an accounting with the
6407	6407	10 load forecast that must be filed with the Agency by July 15
6408	6408	11 of each year, in accordance with subsection (d) of Section
6409	6409	12 16-111.5 of the Public Utilities Act.
6410	6410	13 A utility shall be deemed to have complied with the
6411	6411	14 clean coal portfolio standard specified in this subsection
6412	6412	15 (d) if the utility enters into a sourcing agreement as
6413	6413	16 required by this subsection (d).
6414	6414	17 (2) For purposes of this subsection (d), the required
6415	6415	18 execution of sourcing agreements with the initial clean
6416	6416	19 coal facility for a particular year shall be measured as a
6417	6417	20 percentage of the actual amount of electricity
6418	6418	21 (megawatt-hours) supplied by the electric utility to
6419	6419	22 eligible retail customers in the planning year ending
6420	6420	23 immediately prior to the agreement's execution. For
6421	6421	24 purposes of this subsection (d), the amount paid per
6422	6422	25 kilowatthour means the total amount paid for electric
6423	6423	26 service expressed on a per kilowatthour basis. For
6424	6424
6425	6425
6426	6426
6427	6427
6428	6428
6429	6429	SB3949 - 178 - LRB103 40603 LNS 73240 b
6430	6430
6431	6431
6432	6432	SB3949- 179 -LRB103 40603 LNS 73240 b SB3949 - 179 - LRB103 40603 LNS 73240 b
6433	6433	SB3949 - 179 - LRB103 40603 LNS 73240 b
6434	6434	1 purposes of this subsection (d), the total amount paid for
6435	6435	2 electric service includes without limitation amounts paid
6436	6436	3 for supply, transmission, distribution, surcharges and
6437	6437	4 add-on taxes.
6438	6438	5 Notwithstanding the requirements of this subsection
6439	6439	6 (d), the total amount paid under sourcing agreements with
6440	6440	7 clean coal facilities pursuant to the procurement plan for
6441	6441	8 any given year shall be reduced by an amount necessary to
6442	6442	9 limit the annual estimated average net increase due to the
6443	6443	10 costs of these resources included in the amounts paid by
6444	6444	11 eligible retail customers in connection with electric
6445	6445	12 service to:
6446	6446	13 (A) in 2010, no more than 0.5% of the amount paid
6447	6447	14 per kilowatthour by those customers during the year
6448	6448	15 ending May 31, 2009;
6449	6449	16 (B) in 2011, the greater of an additional 0.5% of
6450	6450	17 the amount paid per kilowatthour by those customers
6451	6451	18 during the year ending May 31, 2010 or 1% of the amount
6452	6452	19 paid per kilowatthour by those customers during the
6453	6453	20 year ending May 31, 2009;
6454	6454	21 (C) in 2012, the greater of an additional 0.5% of
6455	6455	22 the amount paid per kilowatthour by those customers
6456	6456	23 during the year ending May 31, 2011 or 1.5% of the
6457	6457	24 amount paid per kilowatthour by those customers during
6458	6458	25 the year ending May 31, 2009;
6459	6459	26 (D) in 2013, the greater of an additional 0.5% of
6460	6460
6461	6461
6462	6462
6463	6463
6464	6464
6465	6465	SB3949 - 179 - LRB103 40603 LNS 73240 b
6466	6466
6467	6467
6468	6468	SB3949- 180 -LRB103 40603 LNS 73240 b SB3949 - 180 - LRB103 40603 LNS 73240 b
6469	6469	SB3949 - 180 - LRB103 40603 LNS 73240 b
6470	6470	1 the amount paid per kilowatthour by those customers
6471	6471	2 during the year ending May 31, 2012 or 2% of the amount
6472	6472	3 paid per kilowatthour by those customers during the
6473	6473	4 year ending May 31, 2009; and
6474	6474	5 (E) thereafter, the total amount paid under
6475	6475	6 sourcing agreements with clean coal facilities
6476	6476	7 pursuant to the procurement plan for any single year
6477	6477	8 shall be reduced by an amount necessary to limit the
6478	6478	9 estimated average net increase due to the cost of
6479	6479	10 these resources included in the amounts paid by
6480	6480	11 eligible retail customers in connection with electric
6481	6481	12 service to no more than the greater of (i) 2.015% of
6482	6482	13 the amount paid per kilowatthour by those customers
6483	6483	14 during the year ending May 31, 2009 or (ii) the
6484	6484	15 incremental amount per kilowatthour paid for these
6485	6485	16 resources in 2013. These requirements may be altered
6486	6486	17 only as provided by statute.
6487	6487	18 No later than June 30, 2015, the Commission shall
6488	6488	19 review the limitation on the total amount paid under
6489	6489	20 sourcing agreements, if any, with clean coal facilities
6490	6490	21 pursuant to this subsection (d) and report to the General
6491	6491	22 Assembly its findings as to whether that limitation unduly
6492	6492	23 constrains the amount of electricity generated by
6493	6493	24 cost-effective clean coal facilities that is covered by
6494	6494	25 sourcing agreements.
6495	6495	26 (3) Initial clean coal facility. In order to promote
6496	6496
6497	6497
6498	6498
6499	6499
6500	6500
6501	6501	SB3949 - 180 - LRB103 40603 LNS 73240 b
6502	6502
6503	6503
6504	6504	SB3949- 181 -LRB103 40603 LNS 73240 b SB3949 - 181 - LRB103 40603 LNS 73240 b
6505	6505	SB3949 - 181 - LRB103 40603 LNS 73240 b
6506	6506	1 development of clean coal facilities in Illinois, each
6507	6507	2 electric utility subject to this Section shall execute a
6508	6508	3 sourcing agreement to source electricity from a proposed
6509	6509	4 clean coal facility in Illinois (the "initial clean coal
6510	6510	5 facility") that will have a nameplate capacity of at least
6511	6511	6 500 MW when commercial operation commences, that has a
6512	6512	7 final Clean Air Act permit on June 1, 2009 (the effective
6513	6513	8 date of Public Act 95-1027), and that will meet the
6514	6514	9 definition of clean coal facility in Section 1-10 of this
6515	6515	10 Act when commercial operation commences. The sourcing
6516	6516	11 agreements with this initial clean coal facility shall be
6517	6517	12 subject to both approval of the initial clean coal
6518	6518	13 facility by the General Assembly and satisfaction of the
6519	6519	14 requirements of paragraph (4) of this subsection (d) and
6520	6520	15 shall be executed within 90 days after any such approval
6521	6521	16 by the General Assembly. The Agency and the Commission
6522	6522	17 shall have authority to inspect all books and records
6523	6523	18 associated with the initial clean coal facility during the
6524	6524	19 term of such a sourcing agreement. A utility's sourcing
6525	6525	20 agreement for electricity produced by the initial clean
6526	6526	21 coal facility shall include:
6527	6527	22 (A) a formula contractual price (the "contract
6528	6528	23 price") approved pursuant to paragraph (4) of this
6529	6529	24 subsection (d), which shall:
6530	6530	25 (i) be determined using a cost of service
6531	6531	26 methodology employing either a level or deferred
6532	6532
6533	6533
6534	6534
6535	6535
6536	6536
6537	6537	SB3949 - 181 - LRB103 40603 LNS 73240 b
6538	6538
6539	6539
6540	6540	SB3949- 182 -LRB103 40603 LNS 73240 b SB3949 - 182 - LRB103 40603 LNS 73240 b
6541	6541	SB3949 - 182 - LRB103 40603 LNS 73240 b
6542	6542	1 capital recovery component, based on a capital
6543	6543	2 structure consisting of 45% equity and 55% debt,
6544	6544	3 and a return on equity as may be approved by the
6545	6545	4 Federal Energy Regulatory Commission, which in any
6546	6546	5 case may not exceed the lower of 11.5% or the rate
6547	6547	6 of return approved by the General Assembly
6548	6548	7 pursuant to paragraph (4) of this subsection (d);
6549	6549	8 and
6550	6550	9 (ii) provide that all miscellaneous net
6551	6551	10 revenue, including but not limited to net revenue
6552	6552	11 from the sale of emission allowances, if any,
6553	6553	12 substitute natural gas, if any, grants or other
6554	6554	13 support provided by the State of Illinois or the
6555	6555	14 United States Government, firm transmission
6556	6556	15 rights, if any, by-products produced by the
6557	6557	16 facility, energy or capacity derived from the
6558	6558	17 facility and not covered by a sourcing agreement
6559	6559	18 pursuant to paragraph (3) of this subsection (d)
6560	6560	19 or item (5) of subsection (d) of Section 16-115 of
6561	6561	20 the Public Utilities Act, whether generated from
6562	6562	21 the synthesis gas derived from coal, from SNG, or
6563	6563	22 from natural gas, shall be credited against the
6564	6564	23 revenue requirement for this initial clean coal
6565	6565	24 facility;
6566	6566	25 (B) power purchase provisions, which shall:
6567	6567	26 (i) provide that the utility party to such
6568	6568
6569	6569
6570	6570
6571	6571
6572	6572
6573	6573	SB3949 - 182 - LRB103 40603 LNS 73240 b
6574	6574
6575	6575
6576	6576	SB3949- 183 -LRB103 40603 LNS 73240 b SB3949 - 183 - LRB103 40603 LNS 73240 b
6577	6577	SB3949 - 183 - LRB103 40603 LNS 73240 b
6578	6578	1 sourcing agreement shall pay the contract price
6579	6579	2 for electricity delivered under such sourcing
6580	6580	3 agreement;
6581	6581	4 (ii) require delivery of electricity to the
6582	6582	5 regional transmission organization market of the
6583	6583	6 utility that is party to such sourcing agreement;
6584	6584	7 (iii) require the utility party to such
6585	6585	8 sourcing agreement to buy from the initial clean
6586	6586	9 coal facility in each hour an amount of energy
6587	6587	10 equal to all clean coal energy made available from
6588	6588	11 the initial clean coal facility during such hour
6589	6589	12 times a fraction, the numerator of which is such
6590	6590	13 utility's retail market sales of electricity
6591	6591	14 (expressed in kilowatthours sold) in the State
6592	6592	15 during the prior calendar month and the
6593	6593	16 denominator of which is the total retail market
6594	6594	17 sales of electricity (expressed in kilowatthours
6595	6595	18 sold) in the State by utilities during such prior
6596	6596	19 month and the sales of electricity (expressed in
6597	6597	20 kilowatthours sold) in the State by alternative
6598	6598	21 retail electric suppliers during such prior month
6599	6599	22 that are subject to the requirements of this
6600	6600	23 subsection (d) and paragraph (5) of subsection (d)
6601	6601	24 of Section 16-115 of the Public Utilities Act,
6602	6602	25 provided that the amount purchased by the utility
6603	6603	26 in any year will be limited by paragraph (2) of
6604	6604
6605	6605
6606	6606
6607	6607
6608	6608
6609	6609	SB3949 - 183 - LRB103 40603 LNS 73240 b
6610	6610
6611	6611
6612	6612	SB3949- 184 -LRB103 40603 LNS 73240 b SB3949 - 184 - LRB103 40603 LNS 73240 b
6613	6613	SB3949 - 184 - LRB103 40603 LNS 73240 b
6614	6614	1 this subsection (d); and
6615	6615	2 (iv) be considered pre-existing contracts in
6616	6616	3 such utility's procurement plans for eligible
6617	6617	4 retail customers;
6618	6618	5 (C) contract for differences provisions, which
6619	6619	6 shall:
6620	6620	7 (i) require the utility party to such sourcing
6621	6621	8 agreement to contract with the initial clean coal
6622	6622	9 facility in each hour with respect to an amount of
6623	6623	10 energy equal to all clean coal energy made
6624	6624	11 available from the initial clean coal facility
6625	6625	12 during such hour times a fraction, the numerator
6626	6626	13 of which is such utility's retail market sales of
6627	6627	14 electricity (expressed in kilowatthours sold) in
6628	6628	15 the utility's service territory in the State
6629	6629	16 during the prior calendar month and the
6630	6630	17 denominator of which is the total retail market
6631	6631	18 sales of electricity (expressed in kilowatthours
6632	6632	19 sold) in the State by utilities during such prior
6633	6633	20 month and the sales of electricity (expressed in
6634	6634	21 kilowatthours sold) in the State by alternative
6635	6635	22 retail electric suppliers during such prior month
6636	6636	23 that are subject to the requirements of this
6637	6637	24 subsection (d) and paragraph (5) of subsection (d)
6638	6638	25 of Section 16-115 of the Public Utilities Act,
6639	6639	26 provided that the amount paid by the utility in
6640	6640
6641	6641
6642	6642
6643	6643
6644	6644
6645	6645	SB3949 - 184 - LRB103 40603 LNS 73240 b
6646	6646
6647	6647
6648	6648	SB3949- 185 -LRB103 40603 LNS 73240 b SB3949 - 185 - LRB103 40603 LNS 73240 b
6649	6649	SB3949 - 185 - LRB103 40603 LNS 73240 b
6650	6650	1 any year will be limited by paragraph (2) of this
6651	6651	2 subsection (d);
6652	6652	3 (ii) provide that the utility's payment
6653	6653	4 obligation in respect of the quantity of
6654	6654	5 electricity determined pursuant to the preceding
6655	6655	6 clause (i) shall be limited to an amount equal to
6656	6656	7 (1) the difference between the contract price
6657	6657	8 determined pursuant to subparagraph (A) of
6658	6658	9 paragraph (3) of this subsection (d) and the
6659	6659	10 day-ahead price for electricity delivered to the
6660	6660	11 regional transmission organization market of the
6661	6661	12 utility that is party to such sourcing agreement
6662	6662	13 (or any successor delivery point at which such
6663	6663	14 utility's supply obligations are financially
6664	6664	15 settled on an hourly basis) (the "reference
6665	6665	16 price") on the day preceding the day on which the
6666	6666	17 electricity is delivered to the initial clean coal
6667	6667	18 facility busbar, multiplied by (2) the quantity of
6668	6668	19 electricity determined pursuant to the preceding
6669	6669	20 clause (i); and
6670	6670	21 (iii) not require the utility to take physical
6671	6671	22 delivery of the electricity produced by the
6672	6672	23 facility;
6673	6673	24 (D) general provisions, which shall:
6674	6674	25 (i) specify a term of no more than 30 years,
6675	6675	26 commencing on the commercial operation date of the
6676	6676
6677	6677
6678	6678
6679	6679
6680	6680
6681	6681	SB3949 - 185 - LRB103 40603 LNS 73240 b
6682	6682
6683	6683
6684	6684	SB3949- 186 -LRB103 40603 LNS 73240 b SB3949 - 186 - LRB103 40603 LNS 73240 b
6685	6685	SB3949 - 186 - LRB103 40603 LNS 73240 b
6686	6686	1 facility;
6687	6687	2 (ii) provide that utilities shall maintain
6688	6688	3 adequate records documenting purchases under the
6689	6689	4 sourcing agreements entered into to comply with
6690	6690	5 this subsection (d) and shall file an accounting
6691	6691	6 with the load forecast that must be filed with the
6692	6692	7 Agency by July 15 of each year, in accordance with
6693	6693	8 subsection (d) of Section 16-111.5 of the Public
6694	6694	9 Utilities Act;
6695	6695	10 (iii) provide that all costs associated with
6696	6696	11 the initial clean coal facility will be
6697	6697	12 periodically reported to the Federal Energy
6698	6698	13 Regulatory Commission and to purchasers in
6699	6699	14 accordance with applicable laws governing
6700	6700	15 cost-based wholesale power contracts;
6701	6701	16 (iv) permit the Illinois Power Agency to
6702	6702	17 assume ownership of the initial clean coal
6703	6703	18 facility, without monetary consideration and
6704	6704	19 otherwise on reasonable terms acceptable to the
6705	6705	20 Agency, if the Agency so requests no less than 3
6706	6706	21 years prior to the end of the stated contract
6707	6707	22 term;
6708	6708	23 (v) require the owner of the initial clean
6709	6709	24 coal facility to provide documentation to the
6710	6710	25 Commission each year, starting in the facility's
6711	6711	26 first year of commercial operation, accurately
6712	6712
6713	6713
6714	6714
6715	6715
6716	6716
6717	6717	SB3949 - 186 - LRB103 40603 LNS 73240 b
6718	6718
6719	6719
6720	6720	SB3949- 187 -LRB103 40603 LNS 73240 b SB3949 - 187 - LRB103 40603 LNS 73240 b
6721	6721	SB3949 - 187 - LRB103 40603 LNS 73240 b
6722	6722	1 reporting the quantity of carbon emissions from
6723	6723	2 the facility that have been captured and
6724	6724	3 sequestered and report any quantities of carbon
6725	6725	4 released from the site or sites at which carbon
6726	6726	5 emissions were sequestered in prior years, based
6727	6727	6 on continuous monitoring of such sites. If, in any
6728	6728	7 year after the first year of commercial operation,
6729	6729	8 the owner of the facility fails to demonstrate
6730	6730	9 that the initial clean coal facility captured and
6731	6731	10 sequestered at least 50% of the total carbon
6732	6732	11 emissions that the facility would otherwise emit
6733	6733	12 or that sequestration of emissions from prior
6734	6734	13 years has failed, resulting in the release of
6735	6735	14 carbon dioxide into the atmosphere, the owner of
6736	6736	15 the facility must offset excess emissions. Any
6737	6737	16 such carbon offsets must be permanent, additional,
6738	6738	17 verifiable, real, located within the State of
6739	6739	18 Illinois, and legally and practicably enforceable.
6740	6740	19 The cost of such offsets for the facility that are
6741	6741	20 not recoverable shall not exceed $15 million in
6742	6742	21 any given year. No costs of any such purchases of
6743	6743	22 carbon offsets may be recovered from a utility or
6744	6744	23 its customers. All carbon offsets purchased for
6745	6745	24 this purpose and any carbon emission credits
6746	6746	25 associated with sequestration of carbon from the
6747	6747	26 facility must be permanently retired. The initial
6748	6748
6749	6749
6750	6750
6751	6751
6752	6752
6753	6753	SB3949 - 187 - LRB103 40603 LNS 73240 b
6754	6754
6755	6755
6756	6756	SB3949- 188 -LRB103 40603 LNS 73240 b SB3949 - 188 - LRB103 40603 LNS 73240 b
6757	6757	SB3949 - 188 - LRB103 40603 LNS 73240 b
6758	6758	1 clean coal facility shall not forfeit its
6759	6759	2 designation as a clean coal facility if the
6760	6760	3 facility fails to fully comply with the applicable
6761	6761	4 carbon sequestration requirements in any given
6762	6762	5 year, provided the requisite offsets are
6763	6763	6 purchased. However, the Attorney General, on
6764	6764	7 behalf of the People of the State of Illinois, may
6765	6765	8 specifically enforce the facility's sequestration
6766	6766	9 requirement and the other terms of this contract
6767	6767	10 provision. Compliance with the sequestration
6768	6768	11 requirements and offset purchase requirements
6769	6769	12 specified in paragraph (3) of this subsection (d)
6770	6770	13 shall be reviewed annually by an independent
6771	6771	14 expert retained by the owner of the initial clean
6772	6772	15 coal facility, with the advance written approval
6773	6773	16 of the Attorney General. The Commission may, in
6774	6774	17 the course of the review specified in item (vii),
6775	6775	18 reduce the allowable return on equity for the
6776	6776	19 facility if the facility willfully fails to comply
6777	6777	20 with the carbon capture and sequestration
6778	6778	21 requirements set forth in this item (v);
6779	6779	22 (vi) include limits on, and accordingly
6780	6780	23 provide for modification of, the amount the
6781	6781	24 utility is required to source under the sourcing
6782	6782	25 agreement consistent with paragraph (2) of this
6783	6783	26 subsection (d);
6784	6784
6785	6785
6786	6786
6787	6787
6788	6788
6789	6789	SB3949 - 188 - LRB103 40603 LNS 73240 b
6790	6790
6791	6791
6792	6792	SB3949- 189 -LRB103 40603 LNS 73240 b SB3949 - 189 - LRB103 40603 LNS 73240 b
6793	6793	SB3949 - 189 - LRB103 40603 LNS 73240 b
6794	6794	1 (vii) require Commission review: (1) to
6795	6795	2 determine the justness, reasonableness, and
6796	6796	3 prudence of the inputs to the formula referenced
6797	6797	4 in subparagraphs (A)(i) through (A)(iii) of
6798	6798	5 paragraph (3) of this subsection (d), prior to an
6799	6799	6 adjustment in those inputs including, without
6800	6800	7 limitation, the capital structure and return on
6801	6801	8 equity, fuel costs, and other operations and
6802	6802	9 maintenance costs and (2) to approve the costs to
6803	6803	10 be passed through to customers under the sourcing
6804	6804	11 agreement by which the utility satisfies its
6805	6805	12 statutory obligations. Commission review shall
6806	6806	13 occur no less than every 3 years, regardless of
6807	6807	14 whether any adjustments have been proposed, and
6808	6808	15 shall be completed within 9 months;
6809	6809	16 (viii) limit the utility's obligation to such
6810	6810	17 amount as the utility is allowed to recover
6811	6811	18 through tariffs filed with the Commission,
6812	6812	19 provided that neither the clean coal facility nor
6813	6813	20 the utility waives any right to assert federal
6814	6814	21 pre-emption or any other argument in response to a
6815	6815	22 purported disallowance of recovery costs;
6816	6816	23 (ix) limit the utility's or alternative retail
6817	6817	24 electric supplier's obligation to incur any
6818	6818	25 liability until such time as the facility is in
6819	6819	26 commercial operation and generating power and
6820	6820
6821	6821
6822	6822
6823	6823
6824	6824
6825	6825	SB3949 - 189 - LRB103 40603 LNS 73240 b
6826	6826
6827	6827
6828	6828	SB3949- 190 -LRB103 40603 LNS 73240 b SB3949 - 190 - LRB103 40603 LNS 73240 b
6829	6829	SB3949 - 190 - LRB103 40603 LNS 73240 b
6830	6830	1 energy and such power and energy is being
6831	6831	2 delivered to the facility busbar;
6832	6832	3 (x) provide that the owner or owners of the
6833	6833	4 initial clean coal facility, which is the
6834	6834	5 counterparty to such sourcing agreement, shall
6835	6835	6 have the right from time to time to elect whether
6836	6836	7 the obligations of the utility party thereto shall
6837	6837	8 be governed by the power purchase provisions or
6838	6838	9 the contract for differences provisions;
6839	6839	10 (xi) append documentation showing that the
6840	6840	11 formula rate and contract, insofar as they relate
6841	6841	12 to the power purchase provisions, have been
6842	6842	13 approved by the Federal Energy Regulatory
6843	6843	14 Commission pursuant to Section 205 of the Federal
6844	6844	15 Power Act;
6845	6845	16 (xii) provide that any changes to the terms of
6846	6846	17 the contract, insofar as such changes relate to
6847	6847	18 the power purchase provisions, are subject to
6848	6848	19 review under the public interest standard applied
6849	6849	20 by the Federal Energy Regulatory Commission
6850	6850	21 pursuant to Sections 205 and 206 of the Federal
6851	6851	22 Power Act; and
6852	6852	23 (xiii) conform with customary lender
6853	6853	24 requirements in power purchase agreements used as
6854	6854	25 the basis for financing non-utility generators.
6855	6855	26 (4) Effective date of sourcing agreements with the
6856	6856
6857	6857
6858	6858
6859	6859
6860	6860
6861	6861	SB3949 - 190 - LRB103 40603 LNS 73240 b
6862	6862
6863	6863
6864	6864	SB3949- 191 -LRB103 40603 LNS 73240 b SB3949 - 191 - LRB103 40603 LNS 73240 b
6865	6865	SB3949 - 191 - LRB103 40603 LNS 73240 b
6866	6866	1 initial clean coal facility. Any proposed sourcing
6867	6867	2 agreement with the initial clean coal facility shall not
6868	6868	3 become effective unless the following reports are prepared
6869	6869	4 and submitted and authorizations and approvals obtained:
6870	6870	5 (i) Facility cost report. The owner of the initial
6871	6871	6 clean coal facility shall submit to the Commission,
6872	6872	7 the Agency, and the General Assembly a front-end
6873	6873	8 engineering and design study, a facility cost report,
6874	6874	9 method of financing (including but not limited to
6875	6875	10 structure and associated costs), and an operating and
6876	6876	11 maintenance cost quote for the facility (collectively
6877	6877	12 "facility cost report"), which shall be prepared in
6878	6878	13 accordance with the requirements of this paragraph (4)
6879	6879	14 of subsection (d) of this Section, and shall provide
6880	6880	15 the Commission and the Agency access to the work
6881	6881	16 papers, relied upon documents, and any other backup
6882	6882	17 documentation related to the facility cost report.
6883	6883	18 (ii) Commission report. Within 6 months following
6884	6884	19 receipt of the facility cost report, the Commission,
6885	6885	20 in consultation with the Agency, shall submit a report
6886	6886	21 to the General Assembly setting forth its analysis of
6887	6887	22 the facility cost report. Such report shall include,
6888	6888	23 but not be limited to, a comparison of the costs
6889	6889	24 associated with electricity generated by the initial
6890	6890	25 clean coal facility to the costs associated with
6891	6891	26 electricity generated by other types of generation
6892	6892
6893	6893
6894	6894
6895	6895
6896	6896
6897	6897	SB3949 - 191 - LRB103 40603 LNS 73240 b
6898	6898
6899	6899
6900	6900	SB3949- 192 -LRB103 40603 LNS 73240 b SB3949 - 192 - LRB103 40603 LNS 73240 b
6901	6901	SB3949 - 192 - LRB103 40603 LNS 73240 b
6902	6902	1 facilities, an analysis of the rate impacts on
6903	6903	2 residential and small business customers over the life
6904	6904	3 of the sourcing agreements, and an analysis of the
6905	6905	4 likelihood that the initial clean coal facility will
6906	6906	5 commence commercial operation by and be delivering
6907	6907	6 power to the facility's busbar by 2016. To assist in
6908	6908	7 the preparation of its report, the Commission, in
6909	6909	8 consultation with the Agency, may hire one or more
6910	6910	9 experts or consultants, the costs of which shall be
6911	6911	10 paid for by the owner of the initial clean coal
6912	6912	11 facility. The Commission and Agency may begin the
6913	6913	12 process of selecting such experts or consultants prior
6914	6914	13 to receipt of the facility cost report.
6915	6915	14 (iii) General Assembly approval. The proposed
6916	6916	15 sourcing agreements shall not take effect unless,
6917	6917	16 based on the facility cost report and the Commission's
6918	6918	17 report, the General Assembly enacts authorizing
6919	6919	18 legislation approving (A) the projected price, stated
6920	6920	19 in cents per kilowatthour, to be charged for
6921	6921	20 electricity generated by the initial clean coal
6922	6922	21 facility, (B) the projected impact on residential and
6923	6923	22 small business customers' bills over the life of the
6924	6924	23 sourcing agreements, and (C) the maximum allowable
6925	6925	24 return on equity for the project; and
6926	6926	25 (iv) Commission review. If the General Assembly
6927	6927	26 enacts authorizing legislation pursuant to
6928	6928
6929	6929
6930	6930
6931	6931
6932	6932
6933	6933	SB3949 - 192 - LRB103 40603 LNS 73240 b
6934	6934
6935	6935
6936	6936	SB3949- 193 -LRB103 40603 LNS 73240 b SB3949 - 193 - LRB103 40603 LNS 73240 b
6937	6937	SB3949 - 193 - LRB103 40603 LNS 73240 b
6938	6938	1 subparagraph (iii) approving a sourcing agreement, the
6939	6939	2 Commission shall, within 90 days of such enactment,
6940	6940	3 complete a review of such sourcing agreement. During
6941	6941	4 such time period, the Commission shall implement any
6942	6942	5 directive of the General Assembly, resolve any
6943	6943	6 disputes between the parties to the sourcing agreement
6944	6944	7 concerning the terms of such agreement, approve the
6945	6945	8 form of such agreement, and issue an order finding
6946	6946	9 that the sourcing agreement is prudent and reasonable.
6947	6947	10 The facility cost report shall be prepared as follows:
6948	6948	11 (A) The facility cost report shall be prepared by
6949	6949	12 duly licensed engineering and construction firms
6950	6950	13 detailing the estimated capital costs payable to one
6951	6951	14 or more contractors or suppliers for the engineering,
6952	6952	15 procurement and construction of the components
6953	6953	16 comprising the initial clean coal facility and the
6954	6954	17 estimated costs of operation and maintenance of the
6955	6955	18 facility. The facility cost report shall include:
6956	6956	19 (i) an estimate of the capital cost of the
6957	6957	20 core plant based on one or more front end
6958	6958	21 engineering and design studies for the
6959	6959	22 gasification island and related facilities. The
6960	6960	23 core plant shall include all civil, structural,
6961	6961	24 mechanical, electrical, control, and safety
6962	6962	25 systems.
6963	6963	26 (ii) an estimate of the capital cost of the
6964	6964
6965	6965
6966	6966
6967	6967
6968	6968
6969	6969	SB3949 - 193 - LRB103 40603 LNS 73240 b
6970	6970
6971	6971
6972	6972	SB3949- 194 -LRB103 40603 LNS 73240 b SB3949 - 194 - LRB103 40603 LNS 73240 b
6973	6973	SB3949 - 194 - LRB103 40603 LNS 73240 b
6974	6974	1 balance of the plant, including any capital costs
6975	6975	2 associated with sequestration of carbon dioxide
6976	6976	3 emissions and all interconnects and interfaces
6977	6977	4 required to operate the facility, such as
6978	6978	5 transmission of electricity, construction or
6979	6979	6 backfeed power supply, pipelines to transport
6980	6980	7 substitute natural gas or carbon dioxide, potable
6981	6981	8 water supply, natural gas supply, water supply,
6982	6982	9 water discharge, landfill, access roads, and coal
6983	6983	10 delivery.
6984	6984	11 The quoted construction costs shall be expressed
6985	6985	12 in nominal dollars as of the date that the quote is
6986	6986	13 prepared and shall include capitalized financing costs
6987	6987	14 during construction, taxes, insurance, and other
6988	6988	15 owner's costs, and an assumed escalation in materials
6989	6989	16 and labor beyond the date as of which the construction
6990	6990	17 cost quote is expressed.
6991	6991	18 (B) The front end engineering and design study for
6992	6992	19 the gasification island and the cost study for the
6993	6993	20 balance of plant shall include sufficient design work
6994	6994	21 to permit quantification of major categories of
6995	6995	22 materials, commodities and labor hours, and receipt of
6996	6996	23 quotes from vendors of major equipment required to
6997	6997	24 construct and operate the clean coal facility.
6998	6998	25 (C) The facility cost report shall also include an
6999	6999	26 operating and maintenance cost quote that will provide
7000	7000
7001	7001
7002	7002
7003	7003
7004	7004
7005	7005	SB3949 - 194 - LRB103 40603 LNS 73240 b
7006	7006
7007	7007
7008	7008	SB3949- 195 -LRB103 40603 LNS 73240 b SB3949 - 195 - LRB103 40603 LNS 73240 b
7009	7009	SB3949 - 195 - LRB103 40603 LNS 73240 b
7010	7010	1 the estimated cost of delivered fuel, personnel,
7011	7011	2 maintenance contracts, chemicals, catalysts,
7012	7012	3 consumables, spares, and other fixed and variable
7013	7013	4 operations and maintenance costs. The delivered fuel
7014	7014	5 cost estimate will be provided by a recognized third
7015	7015	6 party expert or experts in the fuel and transportation
7016	7016	7 industries. The balance of the operating and
7017	7017	8 maintenance cost quote, excluding delivered fuel
7018	7018	9 costs, will be developed based on the inputs provided
7019	7019	10 by duly licensed engineering and construction firms
7020	7020	11 performing the construction cost quote, potential
7021	7021	12 vendors under long-term service agreements and plant
7022	7022	13 operating agreements, or recognized third party plant
7023	7023	14 operator or operators.
7024	7024	15 The operating and maintenance cost quote
7025	7025	16 (including the cost of the front end engineering and
7026	7026	17 design study) shall be expressed in nominal dollars as
7027	7027	18 of the date that the quote is prepared and shall
7028	7028	19 include taxes, insurance, and other owner's costs, and
7029	7029	20 an assumed escalation in materials and labor beyond
7030	7030	21 the date as of which the operating and maintenance
7031	7031	22 cost quote is expressed.
7032	7032	23 (D) The facility cost report shall also include an
7033	7033	24 analysis of the initial clean coal facility's ability
7034	7034	25 to deliver power and energy into the applicable
7035	7035	26 regional transmission organization markets and an
7036	7036
7037	7037
7038	7038
7039	7039
7040	7040
7041	7041	SB3949 - 195 - LRB103 40603 LNS 73240 b
7042	7042
7043	7043
7044	7044	SB3949- 196 -LRB103 40603 LNS 73240 b SB3949 - 196 - LRB103 40603 LNS 73240 b
7045	7045	SB3949 - 196 - LRB103 40603 LNS 73240 b
7046	7046	1 analysis of the expected capacity factor for the
7047	7047	2 initial clean coal facility.
7048	7048	3 (E) Amounts paid to third parties unrelated to the
7049	7049	4 owner or owners of the initial clean coal facility to
7050	7050	5 prepare the core plant construction cost quote,
7051	7051	6 including the front end engineering and design study,
7052	7052	7 and the operating and maintenance cost quote will be
7053	7053	8 reimbursed through Coal Development Bonds.
7054	7054	9 (5) Re-powering and retrofitting coal-fired power
7055	7055	10 plants previously owned by Illinois utilities to qualify
7056	7056	11 as clean coal facilities. During the 2009 procurement
7057	7057	12 planning process and thereafter, the Agency and the
7058	7058	13 Commission shall consider sourcing agreements covering
7059	7059	14 electricity generated by power plants that were previously
7060	7060	15 owned by Illinois utilities and that have been or will be
7061	7061	16 converted into clean coal facilities, as defined by
7062	7062	17 Section 1-10 of this Act. Pursuant to such procurement
7063	7063	18 planning process, the owners of such facilities may
7064	7064	19 propose to the Agency sourcing agreements with utilities
7065	7065	20 and alternative retail electric suppliers required to
7066	7066	21 comply with subsection (d) of this Section and item (5) of
7067	7067	22 subsection (d) of Section 16-115 of the Public Utilities
7068	7068	23 Act, covering electricity generated by such facilities. In
7069	7069	24 the case of sourcing agreements that are power purchase
7070	7070	25 agreements, the contract price for electricity sales shall
7071	7071	26 be established on a cost of service basis. In the case of
7072	7072
7073	7073
7074	7074
7075	7075
7076	7076
7077	7077	SB3949 - 196 - LRB103 40603 LNS 73240 b
7078	7078
7079	7079
7080	7080	SB3949- 197 -LRB103 40603 LNS 73240 b SB3949 - 197 - LRB103 40603 LNS 73240 b
7081	7081	SB3949 - 197 - LRB103 40603 LNS 73240 b
7082	7082	1 sourcing agreements that are contracts for differences,
7083	7083	2 the contract price from which the reference price is
7084	7084	3 subtracted shall be established on a cost of service
7085	7085	4 basis. The Agency and the Commission may approve any such
7086	7086	5 utility sourcing agreements that do not exceed cost-based
7087	7087	6 benchmarks developed by the procurement administrator, in
7088	7088	7 consultation with the Commission staff, Agency staff and
7089	7089	8 the procurement monitor, subject to Commission review and
7090	7090	9 approval. The Commission shall have authority to inspect
7091	7091	10 all books and records associated with these clean coal
7092	7092	11 facilities during the term of any such contract.
7093	7093	12 (6) Costs incurred under this subsection (d) or
7094	7094	13 pursuant to a contract entered into under this subsection
7095	7095	14 (d) shall be deemed prudently incurred and reasonable in
7096	7096	15 amount and the electric utility shall be entitled to full
7097	7097	16 cost recovery pursuant to the tariffs filed with the
7098	7098	17 Commission.
7099	7099	18 (d-5) Zero emission standard.
7100	7100	19 (1) Beginning with the delivery year commencing on
7101	7101	20 June 1, 2017, the Agency shall, for electric utilities
7102	7102	21 that serve at least 100,000 retail customers in this
7103	7103	22 State, procure contracts with zero emission facilities
7104	7104	23 that are reasonably capable of generating cost-effective
7105	7105	24 zero emission credits in an amount approximately equal to
7106	7106	25 16% of the actual amount of electricity delivered by each
7107	7107	26 electric utility to retail customers in the State during
7108	7108
7109	7109
7110	7110
7111	7111
7112	7112
7113	7113	SB3949 - 197 - LRB103 40603 LNS 73240 b
7114	7114
7115	7115
7116	7116	SB3949- 198 -LRB103 40603 LNS 73240 b SB3949 - 198 - LRB103 40603 LNS 73240 b
7117	7117	SB3949 - 198 - LRB103 40603 LNS 73240 b
7118	7118	1 calendar year 2014. For an electric utility serving fewer
7119	7119	2 than 100,000 retail customers in this State that
7120	7120	3 requested, under Section 16-111.5 of the Public Utilities
7121	7121	4 Act, that the Agency procure power and energy for all or a
7122	7122	5 portion of the utility's Illinois load for the delivery
7123	7123	6 year commencing June 1, 2016, the Agency shall procure
7124	7124	7 contracts with zero emission facilities that are
7125	7125	8 reasonably capable of generating cost-effective zero
7126	7126	9 emission credits in an amount approximately equal to 16%
7127	7127	10 of the portion of power and energy to be procured by the
7128	7128	11 Agency for the utility. The duration of the contracts
7129	7129	12 procured under this subsection (d-5) shall be for a term
7130	7130	13 of 10 years ending May 31, 2027. The quantity of zero
7131	7131	14 emission credits to be procured under the contracts shall
7132	7132	15 be all of the zero emission credits generated by the zero
7133	7133	16 emission facility in each delivery year; however, if the
7134	7134	17 zero emission facility is owned by more than one entity,
7135	7135	18 then the quantity of zero emission credits to be procured
7136	7136	19 under the contracts shall be the amount of zero emission
7137	7137	20 credits that are generated from the portion of the zero
7138	7138	21 emission facility that is owned by the winning supplier.
7139	7139	22 The 16% value identified in this paragraph (1) is the
7140	7140	23 average of the percentage targets in subparagraph (B) of
7141	7141	24 paragraph (1) of subsection (c) of this Section for the 5
7142	7142	25 delivery years beginning June 1, 2017.
7143	7143	26 The procurement process shall be subject to the
7144	7144
7145	7145
7146	7146
7147	7147
7148	7148
7149	7149	SB3949 - 198 - LRB103 40603 LNS 73240 b
7150	7150
7151	7151
7152	7152	SB3949- 199 -LRB103 40603 LNS 73240 b SB3949 - 199 - LRB103 40603 LNS 73240 b
7153	7153	SB3949 - 199 - LRB103 40603 LNS 73240 b
7154	7154	1 following provisions:
7155	7155	2 (A) Those zero emission facilities that intend to
7156	7156	3 participate in the procurement shall submit to the
7157	7157	4 Agency the following eligibility information for each
7158	7158	5 zero emission facility on or before the date
7159	7159	6 established by the Agency:
7160	7160	7 (i) the in-service date and remaining useful
7161	7161	8 life of the zero emission facility;
7162	7162	9 (ii) the amount of power generated annually
7163	7163	10 for each of the years 2005 through 2015, and the
7164	7164	11 projected zero emission credits to be generated
7165	7165	12 over the remaining useful life of the zero
7166	7166	13 emission facility, which shall be used to
7167	7167	14 determine the capability of each facility;
7168	7168	15 (iii) the annual zero emission facility cost
7169	7169	16 projections, expressed on a per megawatt hour
7170	7170	17 megawatthour basis, over the next 6 delivery
7171	7171	18 years, which shall include the following:
7172	7172	19 operation and maintenance expenses; fully
7173	7173	20 allocated overhead costs, which shall be allocated
7174	7174	21 using the methodology developed by the Institute
7175	7175	22 for Nuclear Power Operations; fuel expenditures;
7176	7176	23 non-fuel capital expenditures; spent fuel
7177	7177	24 expenditures; a return on working capital; the
7178	7178	25 cost of operational and market risks that could be
7179	7179	26 avoided by ceasing operation; and any other costs
7180	7180
7181	7181
7182	7182
7183	7183
7184	7184
7185	7185	SB3949 - 199 - LRB103 40603 LNS 73240 b
7186	7186
7187	7187
7188	7188	SB3949- 200 -LRB103 40603 LNS 73240 b SB3949 - 200 - LRB103 40603 LNS 73240 b
7189	7189	SB3949 - 200 - LRB103 40603 LNS 73240 b
7190	7190	1 necessary for continued operations, provided that
7191	7191	2 "necessary" means, for purposes of this item
7192	7192	3 (iii), that the costs could reasonably be avoided
7193	7193	4 only by ceasing operations of the zero emission
7194	7194	5 facility; and
7195	7195	6 (iv) a commitment to continue operating, for
7196	7196	7 the duration of the contract or contracts executed
7197	7197	8 under the procurement held under this subsection
7198	7198	9 (d-5), the zero emission facility that produces
7199	7199	10 the zero emission credits to be procured in the
7200	7200	11 procurement.
7201	7201	12 The information described in item (iii) of this
7202	7202	13 subparagraph (A) may be submitted on a confidential
7203	7203	14 basis and shall be treated and maintained by the
7204	7204	15 Agency, the procurement administrator, and the
7205	7205	16 Commission as confidential and proprietary and exempt
7206	7206	17 from disclosure under subparagraphs (a) and (g) of
7207	7207	18 paragraph (1) of Section 7 of the Freedom of
7208	7208	19 Information Act. The Office of Attorney General shall
7209	7209	20 have access to, and maintain the confidentiality of,
7210	7210	21 such information pursuant to Section 6.5 of the
7211	7211	22 Attorney General Act.
7212	7212	23 (B) The price for each zero emission credit
7213	7213	24 procured under this subsection (d-5) for each delivery
7214	7214	25 year shall be in an amount that equals the Social Cost
7215	7215	26 of Carbon, expressed on a price per megawatt hour
7216	7216
7217	7217
7218	7218
7219	7219
7220	7220
7221	7221	SB3949 - 200 - LRB103 40603 LNS 73240 b
7222	7222
7223	7223
7224	7224	SB3949- 201 -LRB103 40603 LNS 73240 b SB3949 - 201 - LRB103 40603 LNS 73240 b
7225	7225	SB3949 - 201 - LRB103 40603 LNS 73240 b
7226	7226	1 megawatthour basis. However, to ensure that the
7227	7227	2 procurement remains affordable to retail customers in
7228	7228	3 this State if electricity prices increase, the price
7229	7229	4 in an applicable delivery year shall be reduced below
7230	7230	5 the Social Cost of Carbon by the amount ("Price
7231	7231	6 Adjustment") by which the market price index for the
7232	7232	7 applicable delivery year exceeds the baseline market
7233	7233	8 price index for the consecutive 12-month period ending
7234	7234	9 May 31, 2016. If the Price Adjustment is greater than
7235	7235	10 or equal to the Social Cost of Carbon in an applicable
7236	7236	11 delivery year, then no payments shall be due in that
7237	7237	12 delivery year. The components of this calculation are
7238	7238	13 defined as follows:
7239	7239	14 (i) Social Cost of Carbon: The Social Cost of
7240	7240	15 Carbon is $16.50 per megawatt hour megawatthour,
7241	7241	16 which is based on the U.S. Interagency Working
7242	7242	17 Group on Social Cost of Carbon's price in the
7243	7243	18 August 2016 Technical Update using a 3% discount
7244	7244	19 rate, adjusted for inflation for each year of the
7245	7245	20 program. Beginning with the delivery year
7246	7246	21 commencing June 1, 2023, the price per megawatt
7247	7247	22 hour megawatthour shall increase by $1 per
7248	7248	23 megawatt hour megawatthour, and continue to
7249	7249	24 increase by an additional $1 per megawatt hour
7250	7250	25 megawatthour each delivery year thereafter.
7251	7251	26 (ii) Baseline market price index: The baseline
7252	7252
7253	7253
7254	7254
7255	7255
7256	7256
7257	7257	SB3949 - 201 - LRB103 40603 LNS 73240 b
7258	7258
7259	7259
7260	7260	SB3949- 202 -LRB103 40603 LNS 73240 b SB3949 - 202 - LRB103 40603 LNS 73240 b
7261	7261	SB3949 - 202 - LRB103 40603 LNS 73240 b
7262	7262	1 market price index for the consecutive 12-month
7263	7263	2 period ending May 31, 2016 is $31.40 per megawatt
7264	7264	3 hour megawatthour, which is based on the sum of
7265	7265	4 (aa) the average day-ahead energy price across all
7266	7266	5 hours of such 12-month period at the PJM
7267	7267	6 Interconnection LLC Northern Illinois Hub, (bb)
7268	7268	7 50% multiplied by the Base Residual Auction, or
7269	7269	8 its successor, capacity price for the rest of the
7270	7270	9 RTO zone group determined by PJM Interconnection
7271	7271	10 LLC, divided by 24 hours per day, and (cc) 50%
7272	7272	11 multiplied by the Planning Resource Auction, or
7273	7273	12 its successor, capacity price for Zone 4
7274	7274	13 determined by the Midcontinent Independent System
7275	7275	14 Operator, Inc., divided by 24 hours per day.
7276	7276	15 (iii) Market price index: The market price
7277	7277	16 index for a delivery year shall be the sum of
7278	7278	17 projected energy prices and projected capacity
7279	7279	18 prices determined as follows:
7280	7280	19 (aa) Projected energy prices: the
7281	7281	20 projected energy prices for the applicable
7282	7282	21 delivery year shall be calculated once for the
7283	7283	22 year using the forward market price for the
7284	7284	23 PJM Interconnection, LLC Northern Illinois
7285	7285	24 Hub. The forward market price shall be
7286	7286	25 calculated as follows: the energy forward
7287	7287	26 prices for each month of the applicable
7288	7288
7289	7289
7290	7290
7291	7291
7292	7292
7293	7293	SB3949 - 202 - LRB103 40603 LNS 73240 b
7294	7294
7295	7295
7296	7296	SB3949- 203 -LRB103 40603 LNS 73240 b SB3949 - 203 - LRB103 40603 LNS 73240 b
7297	7297	SB3949 - 203 - LRB103 40603 LNS 73240 b
7298	7298	1 delivery year averaged for each trade date
7299	7299	2 during the calendar year immediately preceding
7300	7300	3 that delivery year to produce a single energy
7301	7301	4 forward price for the delivery year. The
7302	7302	5 forward market price calculation shall use
7303	7303	6 data published by the Intercontinental
7304	7304	7 Exchange, or its successor.
7305	7305	8 (bb) Projected capacity prices:
7306	7306	9 (I) For the delivery years commencing
7307	7307	10 June 1, 2017, June 1, 2018, and June 1,
7308	7308	11 2019, the projected capacity price shall
7309	7309	12 be equal to the sum of (1) 50% multiplied
7310	7310	13 by the Base Residual Auction, or its
7311	7311	14 successor, price for the rest of the RTO
7312	7312	15 zone group as determined by PJM
7313	7313	16 Interconnection LLC, divided by 24 hours
7314	7314	17 per day and, (2) 50% multiplied by the
7315	7315	18 resource auction price determined in the
7316	7316	19 resource auction administered by the
7317	7317	20 Midcontinent Independent System Operator,
7318	7318	21 Inc., in which the largest percentage of
7319	7319	22 load cleared for Local Resource Zone 4,
7320	7320	23 divided by 24 hours per day, and where
7321	7321	24 such price is determined by the
7322	7322	25 Midcontinent Independent System Operator,
7323	7323	26 Inc.
7324	7324
7325	7325
7326	7326
7327	7327
7328	7328
7329	7329	SB3949 - 203 - LRB103 40603 LNS 73240 b
7330	7330
7331	7331
7332	7332	SB3949- 204 -LRB103 40603 LNS 73240 b SB3949 - 204 - LRB103 40603 LNS 73240 b
7333	7333	SB3949 - 204 - LRB103 40603 LNS 73240 b
7334	7334	1 (II) For the delivery year commencing
7335	7335	2 June 1, 2020, and each year thereafter,
7336	7336	3 the projected capacity price shall be
7337	7337	4 equal to the sum of (1) 50% multiplied by
7338	7338	5 the Base Residual Auction, or its
7339	7339	6 successor, price for the ComEd zone as
7340	7340	7 determined by PJM Interconnection LLC,
7341	7341	8 divided by 24 hours per day, and (2) 50%
7342	7342	9 multiplied by the resource auction price
7343	7343	10 determined in the resource auction
7344	7344	11 administered by the Midcontinent
7345	7345	12 Independent System Operator, Inc., in
7346	7346	13 which the largest percentage of load
7347	7347	14 cleared for Local Resource Zone 4, divided
7348	7348	15 by 24 hours per day, and where such price
7349	7349	16 is determined by the Midcontinent
7350	7350	17 Independent System Operator, Inc.
7351	7351	18 For purposes of this subsection (d-5):
7352	7352	19 "Rest of the RTO" and "ComEd Zone" shall have
7353	7353	20 the meaning ascribed to them by PJM
7354	7354	21 Interconnection, LLC.
7355	7355	22 "RTO" means regional transmission
7356	7356	23 organization.
7357	7357	24 (C) No later than 45 days after June 1, 2017 (the
7358	7358	25 effective date of Public Act 99-906), the Agency shall
7359	7359	26 publish its proposed zero emission standard
7360	7360
7361	7361
7362	7362
7363	7363
7364	7364
7365	7365	SB3949 - 204 - LRB103 40603 LNS 73240 b
7366	7366
7367	7367
7368	7368	SB3949- 205 -LRB103 40603 LNS 73240 b SB3949 - 205 - LRB103 40603 LNS 73240 b
7369	7369	SB3949 - 205 - LRB103 40603 LNS 73240 b
7370	7370	1 procurement plan. The plan shall be consistent with
7371	7371	2 the provisions of this paragraph (1) and shall provide
7372	7372	3 that winning bids shall be selected based on public
7373	7373	4 interest criteria that include, but are not limited
7374	7374	5 to, minimizing carbon dioxide emissions that result
7375	7375	6 from electricity consumed in Illinois and minimizing
7376	7376	7 sulfur dioxide, nitrogen oxide, and particulate matter
7377	7377	8 emissions that adversely affect the citizens of this
7378	7378	9 State. In particular, the selection of winning bids
7379	7379	10 shall take into account the incremental environmental
7380	7380	11 benefits resulting from the procurement, such as any
7381	7381	12 existing environmental benefits that are preserved by
7382	7382	13 the procurements held under Public Act 99-906 and
7383	7383	14 would cease to exist if the procurements were not
7384	7384	15 held, including the preservation of zero emission
7385	7385	16 facilities. The plan shall also describe in detail how
7386	7386	17 each public interest factor shall be considered and
7387	7387	18 weighted in the bid selection process to ensure that
7388	7388	19 the public interest criteria are applied to the
7389	7389	20 procurement and given full effect.
7390	7390	21 For purposes of developing the plan, the Agency
7391	7391	22 shall consider any reports issued by a State agency,
7392	7392	23 board, or commission under House Resolution 1146 of
7393	7393	24 the 98th General Assembly and paragraph (4) of
7394	7394	25 subsection (d) of this Section, as well as publicly
7395	7395	26 available analyses and studies performed by or for
7396	7396
7397	7397
7398	7398
7399	7399
7400	7400
7401	7401	SB3949 - 205 - LRB103 40603 LNS 73240 b
7402	7402
7403	7403
7404	7404	SB3949- 206 -LRB103 40603 LNS 73240 b SB3949 - 206 - LRB103 40603 LNS 73240 b
7405	7405	SB3949 - 206 - LRB103 40603 LNS 73240 b
7406	7406	1 regional transmission organizations that serve the
7407	7407	2 State and their independent market monitors.
7408	7408	3 Upon publishing of the zero emission standard
7409	7409	4 procurement plan, copies of the plan shall be posted
7410	7410	5 and made publicly available on the Agency's website.
7411	7411	6 All interested parties shall have 10 days following
7412	7412	7 the date of posting to provide comment to the Agency on
7413	7413	8 the plan. All comments shall be posted to the Agency's
7414	7414	9 website. Following the end of the comment period, but
7415	7415	10 no more than 60 days later than June 1, 2017 (the
7416	7416	11 effective date of Public Act 99-906), the Agency shall
7417	7417	12 revise the plan as necessary based on the comments
7418	7418	13 received and file its zero emission standard
7419	7419	14 procurement plan with the Commission.
7420	7420	15 If the Commission determines that the plan will
7421	7421	16 result in the procurement of cost-effective zero
7422	7422	17 emission credits, then the Commission shall, after
7423	7423	18 notice and hearing, but no later than 45 days after the
7424	7424	19 Agency filed the plan, approve the plan or approve
7425	7425	20 with modification. For purposes of this subsection
7426	7426	21 (d-5), "cost effective" means the projected costs of
7427	7427	22 procuring zero emission credits from zero emission
7428	7428	23 facilities do not cause the limit stated in paragraph
7429	7429	24 (2) of this subsection to be exceeded.
7430	7430	25 (C-5) As part of the Commission's review and
7431	7431	26 acceptance or rejection of the procurement results,
7432	7432
7433	7433
7434	7434
7435	7435
7436	7436
7437	7437	SB3949 - 206 - LRB103 40603 LNS 73240 b
7438	7438
7439	7439
7440	7440	SB3949- 207 -LRB103 40603 LNS 73240 b SB3949 - 207 - LRB103 40603 LNS 73240 b
7441	7441	SB3949 - 207 - LRB103 40603 LNS 73240 b
7442	7442	1 the Commission shall, in its public notice of
7443	7443	2 successful bidders:
7444	7444	3 (i) identify how the winning bids satisfy the
7445	7445	4 public interest criteria described in subparagraph
7446	7446	5 (C) of this paragraph (1) of minimizing carbon
7447	7447	6 dioxide emissions that result from electricity
7448	7448	7 consumed in Illinois and minimizing sulfur
7449	7449	8 dioxide, nitrogen oxide, and particulate matter
7450	7450	9 emissions that adversely affect the citizens of
7451	7451	10 this State;
7452	7452	11 (ii) specifically address how the selection of
7453	7453	12 winning bids takes into account the incremental
7454	7454	13 environmental benefits resulting from the
7455	7455	14 procurement, including any existing environmental
7456	7456	15 benefits that are preserved by the procurements
7457	7457	16 held under Public Act 99-906 and would have ceased
7458	7458	17 to exist if the procurements had not been held,
7459	7459	18 such as the preservation of zero emission
7460	7460	19 facilities;
7461	7461	20 (iii) quantify the environmental benefit of
7462	7462	21 preserving the resources identified in item (ii)
7463	7463	22 of this subparagraph (C-5), including the
7464	7464	23 following:
7465	7465	24 (aa) the value of avoided greenhouse gas
7466	7466	25 emissions measured as the product of the zero
7467	7467	26 emission facilities' output over the contract
7468	7468
7469	7469
7470	7470
7471	7471
7472	7472
7473	7473	SB3949 - 207 - LRB103 40603 LNS 73240 b
7474	7474
7475	7475
7476	7476	SB3949- 208 -LRB103 40603 LNS 73240 b SB3949 - 208 - LRB103 40603 LNS 73240 b
7477	7477	SB3949 - 208 - LRB103 40603 LNS 73240 b
7478	7478	1 term multiplied by the U.S. Environmental
7479	7479	2 Protection Agency eGrid subregion carbon
7480	7480	3 dioxide emission rate and the U.S. Interagency
7481	7481	4 Working Group on Social Cost of Carbon's price
7482	7482	5 in the August 2016 Technical Update using a 3%
7483	7483	6 discount rate, adjusted for inflation for each
7484	7484	7 delivery year; and
7485	7485	8 (bb) the costs of replacement with other
7486	7486	9 zero carbon dioxide resources, including wind
7487	7487	10 and photovoltaic, based upon the simple
7488	7488	11 average of the following:
7489	7489	12 (I) the price, or if there is more
7490	7490	13 than one price, the average of the prices,
7491	7491	14 paid for renewable energy credits from new
7492	7492	15 utility-scale wind projects in the
7493	7493	16 procurement events specified in item (i)
7494	7494	17 of subparagraph (G) of paragraph (1) of
7495	7495	18 subsection (c) of this Section; and
7496	7496	19 (II) the price, or if there is more
7497	7497	20 than one price, the average of the prices,
7498	7498	21 paid for renewable energy credits from new
7499	7499	22 utility-scale solar projects and
7500	7500	23 brownfield site photovoltaic projects in
7501	7501	24 the procurement events specified in item
7502	7502	25 (ii) of subparagraph (G) of paragraph (1)
7503	7503	26 of subsection (c) of this Section and,
7504	7504
7505	7505
7506	7506
7507	7507
7508	7508
7509	7509	SB3949 - 208 - LRB103 40603 LNS 73240 b
7510	7510
7511	7511
7512	7512	SB3949- 209 -LRB103 40603 LNS 73240 b SB3949 - 209 - LRB103 40603 LNS 73240 b
7513	7513	SB3949 - 209 - LRB103 40603 LNS 73240 b
7514	7514	1 after January 1, 2015, renewable energy
7515	7515	2 credits from photovoltaic distributed
7516	7516	3 generation projects in procurement events
7517	7517	4 held under subsection (c) of this Section.
7518	7518	5 Each utility shall enter into binding contractual
7519	7519	6 arrangements with the winning suppliers.
7520	7520	7 The procurement described in this subsection
7521	7521	8 (d-5), including, but not limited to, the execution of
7522	7522	9 all contracts procured, shall be completed no later
7523	7523	10 than May 10, 2017. Based on the effective date of
7524	7524	11 Public Act 99-906, the Agency and Commission may, as
7525	7525	12 appropriate, modify the various dates and timelines
7526	7526	13 under this subparagraph and subparagraphs (C) and (D)
7527	7527	14 of this paragraph (1). The procurement and plan
7528	7528	15 approval processes required by this subsection (d-5)
7529	7529	16 shall be conducted in conjunction with the procurement
7530	7530	17 and plan approval processes required by subsection (c)
7531	7531	18 of this Section and Section 16-111.5 of the Public
7532	7532	19 Utilities Act, to the extent practicable.
7533	7533	20 Notwithstanding whether a procurement event is
7534	7534	21 conducted under Section 16-111.5 of the Public
7535	7535	22 Utilities Act, the Agency shall immediately initiate a
7536	7536	23 procurement process on June 1, 2017 (the effective
7537	7537	24 date of Public Act 99-906).
7538	7538	25 (D) Following the procurement event described in
7539	7539	26 this paragraph (1) and consistent with subparagraph
7540	7540
7541	7541
7542	7542
7543	7543
7544	7544
7545	7545	SB3949 - 209 - LRB103 40603 LNS 73240 b
7546	7546
7547	7547
7548	7548	SB3949- 210 -LRB103 40603 LNS 73240 b SB3949 - 210 - LRB103 40603 LNS 73240 b
7549	7549	SB3949 - 210 - LRB103 40603 LNS 73240 b
7550	7550	1 (B) of this paragraph (1), the Agency shall calculate
7551	7551	2 the payments to be made under each contract for the
7552	7552	3 next delivery year based on the market price index for
7553	7553	4 that delivery year. The Agency shall publish the
7554	7554	5 payment calculations no later than May 25, 2017 and
7555	7555	6 every May 25 thereafter.
7556	7556	7 (E) Notwithstanding the requirements of this
7557	7557	8 subsection (d-5), the contracts executed under this
7558	7558	9 subsection (d-5) shall provide that the zero emission
7559	7559	10 facility may, as applicable, suspend or terminate
7560	7560	11 performance under the contracts in the following
7561	7561	12 instances:
7562	7562	13 (i) A zero emission facility shall be excused
7563	7563	14 from its performance under the contract for any
7564	7564	15 cause beyond the control of the resource,
7565	7565	16 including, but not restricted to, acts of God,
7566	7566	17 flood, drought, earthquake, storm, fire,
7567	7567	18 lightning, epidemic, war, riot, civil disturbance
7568	7568	19 or disobedience, labor dispute, labor or material
7569	7569	20 shortage, sabotage, acts of public enemy,
7570	7570	21 explosions, orders, regulations or restrictions
7571	7571	22 imposed by governmental, military, or lawfully
7572	7572	23 established civilian authorities, which, in any of
7573	7573	24 the foregoing cases, by exercise of commercially
7574	7574	25 reasonable efforts the zero emission facility
7575	7575	26 could not reasonably have been expected to avoid,
7576	7576
7577	7577
7578	7578
7579	7579
7580	7580
7581	7581	SB3949 - 210 - LRB103 40603 LNS 73240 b
7582	7582
7583	7583
7584	7584	SB3949- 211 -LRB103 40603 LNS 73240 b SB3949 - 211 - LRB103 40603 LNS 73240 b
7585	7585	SB3949 - 211 - LRB103 40603 LNS 73240 b
7586	7586	1 and which, by the exercise of commercially
7587	7587	2 reasonable efforts, it has been unable to
7588	7588	3 overcome. In such event, the zero emission
7589	7589	4 facility shall be excused from performance for the
7590	7590	5 duration of the event, including, but not limited
7591	7591	6 to, delivery of zero emission credits, and no
7592	7592	7 payment shall be due to the zero emission facility
7593	7593	8 during the duration of the event.
7594	7594	9 (ii) A zero emission facility shall be
7595	7595	10 permitted to terminate the contract if legislation
7596	7596	11 is enacted into law by the General Assembly that
7597	7597	12 imposes or authorizes a new tax, special
7598	7598	13 assessment, or fee on the generation of
7599	7599	14 electricity, the ownership or leasehold of a
7600	7600	15 generating unit, or the privilege or occupation of
7601	7601	16 such generation, ownership, or leasehold of
7602	7602	17 generation units by a zero emission facility.
7603	7603	18 However, the provisions of this item (ii) do not
7604	7604	19 apply to any generally applicable tax, special
7605	7605	20 assessment or fee, or requirements imposed by
7606	7606	21 federal law.
7607	7607	22 (iii) A zero emission facility shall be
7608	7608	23 permitted to terminate the contract in the event
7609	7609	24 that the resource requires capital expenditures in
7610	7610	25 excess of $40,000,000 that were neither known nor
7611	7611	26 reasonably foreseeable at the time it executed the
7612	7612
7613	7613
7614	7614
7615	7615
7616	7616
7617	7617	SB3949 - 211 - LRB103 40603 LNS 73240 b
7618	7618
7619	7619
7620	7620	SB3949- 212 -LRB103 40603 LNS 73240 b SB3949 - 212 - LRB103 40603 LNS 73240 b
7621	7621	SB3949 - 212 - LRB103 40603 LNS 73240 b
7622	7622	1 contract and that a prudent owner or operator of
7623	7623	2 such resource would not undertake.
7624	7624	3 (iv) A zero emission facility shall be
7625	7625	4 permitted to terminate the contract in the event
7626	7626	5 the Nuclear Regulatory Commission terminates the
7627	7627	6 resource's license.
7628	7628	7 (F) If the zero emission facility elects to
7629	7629	8 terminate a contract under subparagraph (E) of this
7630	7630	9 paragraph (1), then the Commission shall reopen the
7631	7631	10 docket in which the Commission approved the zero
7632	7632	11 emission standard procurement plan under subparagraph
7633	7633	12 (C) of this paragraph (1) and, after notice and
7634	7634	13 hearing, enter an order acknowledging the contract
7635	7635	14 termination election if such termination is consistent
7636	7636	15 with the provisions of this subsection (d-5).
7637	7637	16 (2) For purposes of this subsection (d-5), the amount
7638	7638	17 paid per kilowatthour means the total amount paid for
7639	7639	18 electric service expressed on a per kilowatthour basis.
7640	7640	19 For purposes of this subsection (d-5), the total amount
7641	7641	20 paid for electric service includes, without limitation,
7642	7642	21 amounts paid for supply, transmission, distribution,
7643	7643	22 surcharges, and add-on taxes.
7644	7644	23 Notwithstanding the requirements of this subsection
7645	7645	24 (d-5), the contracts executed under this subsection (d-5)
7646	7646	25 shall provide that the total of zero emission credits
7647	7647	26 procured under a procurement plan shall be subject to the
7648	7648
7649	7649
7650	7650
7651	7651
7652	7652
7653	7653	SB3949 - 212 - LRB103 40603 LNS 73240 b
7654	7654
7655	7655
7656	7656	SB3949- 213 -LRB103 40603 LNS 73240 b SB3949 - 213 - LRB103 40603 LNS 73240 b
7657	7657	SB3949 - 213 - LRB103 40603 LNS 73240 b
7658	7658	1 limitations of this paragraph (2). For each delivery year,
7659	7659	2 the contractual volume receiving payments in such year
7660	7660	3 shall be reduced for all retail customers based on the
7661	7661	4 amount necessary to limit the net increase that delivery
7662	7662	5 year to the costs of those credits included in the amounts
7663	7663	6 paid by eligible retail customers in connection with
7664	7664	7 electric service to no more than 1.65% of the amount paid
7665	7665	8 per kilowatthour by eligible retail customers during the
7666	7666	9 year ending May 31, 2009. The result of this computation
7667	7667	10 shall apply to and reduce the procurement for all retail
7668	7668	11 customers, and all those customers shall pay the same
7669	7669	12 single, uniform cents per kilowatthour charge under
7670	7670	13 subsection (k) of Section 16-108 of the Public Utilities
7671	7671	14 Act. To arrive at a maximum dollar amount of zero emission
7672	7672	15 credits to be paid for the particular delivery year, the
7673	7673	16 resulting per kilowatthour amount shall be applied to the
7674	7674	17 actual amount of kilowatthours of electricity delivered by
7675	7675	18 the electric utility in the delivery year immediately
7676	7676	19 prior to the procurement, to all retail customers in its
7677	7677	20 service territory. Unpaid contractual volume for any
7678	7678	21 delivery year shall be paid in any subsequent delivery
7679	7679	22 year in which such payments can be made without exceeding
7680	7680	23 the amount specified in this paragraph (2). The
7681	7681	24 calculations required by this paragraph (2) shall be made
7682	7682	25 only once for each procurement plan year. Once the
7683	7683	26 determination as to the amount of zero emission credits to
7684	7684
7685	7685
7686	7686
7687	7687
7688	7688
7689	7689	SB3949 - 213 - LRB103 40603 LNS 73240 b
7690	7690
7691	7691
7692	7692	SB3949- 214 -LRB103 40603 LNS 73240 b SB3949 - 214 - LRB103 40603 LNS 73240 b
7693	7693	SB3949 - 214 - LRB103 40603 LNS 73240 b
7694	7694	1 be paid is made based on the calculations set forth in this
7695	7695	2 paragraph (2), no subsequent rate impact determinations
7696	7696	3 shall be made and no adjustments to those contract amounts
7697	7697	4 shall be allowed. All costs incurred under those contracts
7698	7698	5 and in implementing this subsection (d-5) shall be
7699	7699	6 recovered by the electric utility as provided in this
7700	7700	7 Section.
7701	7701	8 No later than June 30, 2019, the Commission shall
7702	7702	9 review the limitation on the amount of zero emission
7703	7703	10 credits procured under this subsection (d-5) and report to
7704	7704	11 the General Assembly its findings as to whether that
7705	7705	12 limitation unduly constrains the procurement of
7706	7706	13 cost-effective zero emission credits.
7707	7707	14 (3) Six years after the execution of a contract under
7708	7708	15 this subsection (d-5), the Agency shall determine whether
7709	7709	16 the actual zero emission credit payments received by the
7710	7710	17 supplier over the 6-year period exceed the Average ZEC
7711	7711	18 Payment. In addition, at the end of the term of a contract
7712	7712	19 executed under this subsection (d-5), or at the time, if
7713	7713	20 any, a zero emission facility's contract is terminated
7714	7714	21 under subparagraph (E) of paragraph (1) of this subsection
7715	7715	22 (d-5), then the Agency shall determine whether the actual
7716	7716	23 zero emission credit payments received by the supplier
7717	7717	24 over the term of the contract exceed the Average ZEC
7718	7718	25 Payment, after taking into account any amounts previously
7719	7719	26 credited back to the utility under this paragraph (3). If
7720	7720
7721	7721
7722	7722
7723	7723
7724	7724
7725	7725	SB3949 - 214 - LRB103 40603 LNS 73240 b
7726	7726
7727	7727
7728	7728	SB3949- 215 -LRB103 40603 LNS 73240 b SB3949 - 215 - LRB103 40603 LNS 73240 b
7729	7729	SB3949 - 215 - LRB103 40603 LNS 73240 b
7730	7730	1 the Agency determines that the actual zero emission credit
7731	7731	2 payments received by the supplier over the relevant period
7732	7732	3 exceed the Average ZEC Payment, then the supplier shall
7733	7733	4 credit the difference back to the utility. The amount of
7734	7734	5 the credit shall be remitted to the applicable electric
7735	7735	6 utility no later than 120 days after the Agency's
7736	7736	7 determination, which the utility shall reflect as a credit
7737	7737	8 on its retail customer bills as soon as practicable;
7738	7738	9 however, the credit remitted to the utility shall not
7739	7739	10 exceed the total amount of payments received by the
7740	7740	11 facility under its contract.
7741	7741	12 For purposes of this Section, the Average ZEC Payment
7742	7742	13 shall be calculated by multiplying the quantity of zero
7743	7743	14 emission credits delivered under the contract times the
7744	7744	15 average contract price. The average contract price shall
7745	7745	16 be determined by subtracting the amount calculated under
7746	7746	17 subparagraph (B) of this paragraph (3) from the amount
7747	7747	18 calculated under subparagraph (A) of this paragraph (3),
7748	7748	19 as follows:
7749	7749	20 (A) The average of the Social Cost of Carbon, as
7750	7750	21 defined in subparagraph (B) of paragraph (1) of this
7751	7751	22 subsection (d-5), during the term of the contract.
7752	7752	23 (B) The average of the market price indices, as
7753	7753	24 defined in subparagraph (B) of paragraph (1) of this
7754	7754	25 subsection (d-5), during the term of the contract,
7755	7755	26 minus the baseline market price index, as defined in
7756	7756
7757	7757
7758	7758
7759	7759
7760	7760
7761	7761	SB3949 - 215 - LRB103 40603 LNS 73240 b
7762	7762
7763	7763
7764	7764	SB3949- 216 -LRB103 40603 LNS 73240 b SB3949 - 216 - LRB103 40603 LNS 73240 b
7765	7765	SB3949 - 216 - LRB103 40603 LNS 73240 b
7766	7766	1 subparagraph (B) of paragraph (1) of this subsection
7767	7767	2 (d-5).
7768	7768	3 If the subtraction yields a negative number, then the
7769	7769	4 Average ZEC Payment shall be zero.
7770	7770	5 (4) Cost-effective zero emission credits procured from
7771	7771	6 zero emission facilities shall satisfy the applicable
7772	7772	7 definitions set forth in Section 1-10 of this Act.
7773	7773	8 (5) The electric utility shall retire all zero
7774	7774	9 emission credits used to comply with the requirements of
7775	7775	10 this subsection (d-5).
7776	7776	11 (6) Electric utilities shall be entitled to recover
7777	7777	12 all of the costs associated with the procurement of zero
7778	7778	13 emission credits through an automatic adjustment clause
7779	7779	14 tariff in accordance with subsection (k) and (m) of
7780	7780	15 Section 16-108 of the Public Utilities Act, and the
7781	7781	16 contracts executed under this subsection (d-5) shall
7782	7782	17 provide that the utilities' payment obligations under such
7783	7783	18 contracts shall be reduced if an adjustment is required
7784	7784	19 under subsection (m) of Section 16-108 of the Public
7785	7785	20 Utilities Act.
7786	7786	21 (7) This subsection (d-5) shall become inoperative on
7787	7787	22 January 1, 2028.
7788	7788	23 (d-10) Nuclear Plant Assistance; carbon mitigation
7789	7789	24 credits.
7790	7790	25 (1) The General Assembly finds:
7791	7791	26 (A) The health, welfare, and prosperity of all
7792	7792
7793	7793
7794	7794
7795	7795
7796	7796
7797	7797	SB3949 - 216 - LRB103 40603 LNS 73240 b
7798	7798
7799	7799
7800	7800	SB3949- 217 -LRB103 40603 LNS 73240 b SB3949 - 217 - LRB103 40603 LNS 73240 b
7801	7801	SB3949 - 217 - LRB103 40603 LNS 73240 b
7802	7802	1 Illinois citizens require that the State of Illinois act
7803	7803	2 to avoid and not increase carbon emissions from electric
7804	7804	3 generation sources while continuing to ensure affordable,
7805	7805	4 stable, and reliable electricity to all citizens.
7806	7806	5 (B) Absent immediate action by the State to preserve
7807	7807	6 existing carbon-free energy resources, those resources may
7808	7808	7 retire, and the electric generation needs of Illinois'
7809	7809	8 retail customers may be met instead by facilities that
7810	7810	9 emit significant amounts of carbon pollution and other
7811	7811	10 harmful air pollutants at a high social and economic cost
7812	7812	11 until Illinois is able to develop other forms of clean
7813	7813	12 energy.
7814	7814	13 (C) The General Assembly finds that nuclear power
7815	7815	14 generation is necessary for the State's transition to 100%
7816	7816	15 clean energy, and ensuring continued operation of nuclear
7817	7817	16 plants advances environmental and public health interests
7818	7818	17 through providing carbon-free electricity while reducing
7819	7819	18 the air pollution profile of the Illinois energy
7820	7820	19 generation fleet.
7821	7821	20 (D) The clean energy attributes of nuclear generation
7822	7822	21 facilities support the State in its efforts to achieve
7823	7823	22 100% clean energy.
7824	7824	23 (E) The State currently invests in various forms of
7825	7825	24 clean energy, including, but not limited to, renewable
7826	7826	25 energy, energy efficiency, and low-emission vehicles,
7827	7827	26 among others.
7828	7828
7829	7829
7830	7830
7831	7831
7832	7832
7833	7833	SB3949 - 217 - LRB103 40603 LNS 73240 b
7834	7834
7835	7835
7836	7836	SB3949- 218 -LRB103 40603 LNS 73240 b SB3949 - 218 - LRB103 40603 LNS 73240 b
7837	7837	SB3949 - 218 - LRB103 40603 LNS 73240 b
7838	7838	1 (F) The Environmental Protection Agency commissioned
7839	7839	2 an independent audit which provided a detailed assessment
7840	7840	3 of the financial condition of the Illinois nuclear fleet
7841	7841	4 to evaluate its financial viability and whether the
7842	7842	5 environmental benefits of such resources were at risk. The
7843	7843	6 report identified the risk of losing the environmental
7844	7844	7 benefits of several specific nuclear units. The report
7845	7845	8 also identified that the LaSalle County Generating Station
7846	7846	9 will continue to operate through 2026 and therefore is not
7847	7847	10 eligible to participate in the carbon mitigation credit
7848	7848	11 program.
7849	7849	12 (G) Nuclear plants provide carbon-free energy, which
7850	7850	13 helps to avoid many health-related negative impacts for
7851	7851	14 Illinois residents.
7852	7852	15 (H) The procurement of carbon mitigation credits
7853	7853	16 representing the environmental benefits of carbon-free
7854	7854	17 generation will further the State's efforts at achieving
7855	7855	18 100% clean energy and decarbonizing the electricity sector
7856	7856	19 in a safe, reliable, and affordable manner. Further, the
7857	7857	20 procurement of carbon emission credits will enhance the
7858	7858	21 health and welfare of Illinois residents through decreased
7859	7859	22 reliance on more highly polluting generation.
7860	7860	23 (I) The General Assembly therefore finds it necessary
7861	7861	24 to establish carbon mitigation credits to ensure decreased
7862	7862	25 reliance on more carbon-intensive energy resources, for
7863	7863	26 transitioning to a fully decarbonized electricity sector,
7864	7864
7865	7865
7866	7866
7867	7867
7868	7868
7869	7869	SB3949 - 218 - LRB103 40603 LNS 73240 b
7870	7870
7871	7871
7872	7872	SB3949- 219 -LRB103 40603 LNS 73240 b SB3949 - 219 - LRB103 40603 LNS 73240 b
7873	7873	SB3949 - 219 - LRB103 40603 LNS 73240 b
7874	7874	1 and to help ensure health and welfare of the State's
7875	7875	2 residents.
7876	7876	3 (2) As used in this subsection:
7877	7877	4 "Baseline costs" means costs used to establish a customer
7878	7878	5 protection cap that have been evaluated through an independent
7879	7879	6 audit of a carbon-free energy resource conducted by the
7880	7880	7 Environmental Protection Agency that evaluated projected
7881	7881	8 annual costs for operation and maintenance expenses; fully
7882	7882	9 allocated overhead costs, which shall be allocated using the
7883	7883	10 methodology developed by the Institute for Nuclear Power
7884	7884	11 Operations; fuel expenditures; nonfuel capital expenditures;
7885	7885	12 spent fuel expenditures; a return on working capital; the cost
7886	7886	13 of operational and market risks that could be avoided by
7887	7887	14 ceasing operation; and any other costs necessary for continued
7888	7888	15 operations, provided that "necessary" means, for purposes of
7889	7889	16 this definition, that the costs could reasonably be avoided
7890	7890	17 only by ceasing operations of the carbon-free energy resource.
7891	7891	18 "Carbon mitigation credit" means a tradable credit that
7892	7892	19 represents the carbon emission reduction attributes of one
7893	7893	20 megawatt-hour of energy produced from a carbon-free energy
7894	7894	21 resource.
7895	7895	22 "Carbon-free energy resource" means a generation facility
7896	7896	23 that: (1) is fueled by nuclear power; and (2) is
7897	7897	24 interconnected to PJM Interconnection, LLC.
7898	7898	25 (3) Procurement.
7899	7899	26 (A) Beginning with the delivery year commencing on
7900	7900
7901	7901
7902	7902
7903	7903
7904	7904
7905	7905	SB3949 - 219 - LRB103 40603 LNS 73240 b
7906	7906
7907	7907
7908	7908	SB3949- 220 -LRB103 40603 LNS 73240 b SB3949 - 220 - LRB103 40603 LNS 73240 b
7909	7909	SB3949 - 220 - LRB103 40603 LNS 73240 b
7910	7910	1 June 1, 2022, the Agency shall, for electric utilities
7911	7911	2 serving at least 3,000,000 retail customers in the State,
7912	7912	3 seek to procure contracts for no more than approximately
7913	7913	4 54,500,000 cost-effective carbon mitigation credits from
7914	7914	5 carbon-free energy resources because such credits are
7915	7915	6 necessary to support current levels of carbon-free energy
7916	7916	7 generation and ensure the State meets its carbon dioxide
7917	7917	8 emissions reduction goals. The Agency shall not make a
7918	7918	9 partial award of a contract for carbon mitigation credits
7919	7919	10 covering a fractional amount of a carbon-free energy
7920	7920	11 resource's projected output.
7921	7921	12 (B) Each carbon-free energy resource that intends to
7922	7922	13 participate in a procurement shall be required to submit
7923	7923	14 to the Agency the following information for the resource
7924	7924	15 on or before the date established by the Agency:
7925	7925	16 (i) the in-service date and remaining useful life
7926	7926	17 of the carbon-free energy resource;
7927	7927	18 (ii) the amount of power generated annually for
7928	7928	19 each of the past 10 years, which shall be used to
7929	7929	20 determine the capability of each facility;
7930	7930	21 (iii) a commitment to be reflected in any contract
7931	7931	22 entered into pursuant to this subsection (d-10) to
7932	7932	23 continue operating the carbon-free energy resource at
7933	7933	24 a capacity factor of at least 88% annually on average
7934	7934	25 for the duration of the contract or contracts executed
7935	7935	26 under the procurement held under this subsection
7936	7936
7937	7937
7938	7938
7939	7939
7940	7940
7941	7941	SB3949 - 220 - LRB103 40603 LNS 73240 b
7942	7942
7943	7943
7944	7944	SB3949- 221 -LRB103 40603 LNS 73240 b SB3949 - 221 - LRB103 40603 LNS 73240 b
7945	7945	SB3949 - 221 - LRB103 40603 LNS 73240 b
7946	7946	1 (d-10), except in an instance described in
7947	7947	2 subparagraph (E) of paragraph (1) of subsection (d-5)
7948	7948	3 of this Section or made impracticable as a result of
7949	7949	4 compliance with law or regulation;
7950	7950	5 (iv) financial need and the risk of loss of the
7951	7951	6 environmental benefits of such resource, which shall
7952	7952	7 include the following information:
7953	7953	8 (I) the carbon-free energy resource's cost
7954	7954	9 projections, expressed on a per megawatt-hour
7955	7955	10 basis, over the next 5 delivery years, which shall
7956	7956	11 include the following: operation and maintenance
7957	7957	12 expenses; fully allocated overhead costs, which
7958	7958	13 shall be allocated using the methodology developed
7959	7959	14 by the Institute for Nuclear Power Operations;
7960	7960	15 fuel expenditures; nonfuel capital expenditures;
7961	7961	16 spent fuel expenditures; a return on working
7962	7962	17 capital; the cost of operational and market risks
7963	7963	18 that could be avoided by ceasing operation; and
7964	7964	19 any other costs necessary for continued
7965	7965	20 operations, provided that "necessary" means, for
7966	7966	21 purposes of this subitem (I), that the costs could
7967	7967	22 reasonably be avoided only by ceasing operations
7968	7968	23 of the carbon-free energy resource; and
7969	7969	24 (II) the carbon-free energy resource's revenue
7970	7970	25 projections, including energy, capacity, ancillary
7971	7971	26 services, any other direct State support, known or
7972	7972
7973	7973
7974	7974
7975	7975
7976	7976
7977	7977	SB3949 - 221 - LRB103 40603 LNS 73240 b
7978	7978
7979	7979
7980	7980	SB3949- 222 -LRB103 40603 LNS 73240 b SB3949 - 222 - LRB103 40603 LNS 73240 b
7981	7981	SB3949 - 222 - LRB103 40603 LNS 73240 b
7982	7982	1 anticipated federal attribute credits, known or
7983	7983	2 anticipated tax credits, and any other direct
7984	7984	3 federal support.
7985	7985	4 The information described in this subparagraph (B) may
7986	7986	5 be submitted on a confidential basis and shall be treated
7987	7987	6 and maintained by the Agency, the procurement
7988	7988	7 administrator, and the Commission as confidential and
7989	7989	8 proprietary and exempt from disclosure under subparagraphs
7990	7990	9 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
7991	7991	10 Information Act. The Office of the Attorney General shall
7992	7992	11 have access to, and maintain the confidentiality of, such
7993	7993	12 information pursuant to Section 6.5 of the Attorney
7994	7994	13 General Act.
7995	7995	14 (C) The Agency shall solicit bids for the contracts
7996	7996	15 described in this subsection (d-10) from carbon-free
7997	7997	16 energy resources that have satisfied the requirements of
7998	7998	17 subparagraph (B) of this paragraph (3). The contracts
7999	7999	18 procured pursuant to a procurement event shall reflect,
8000	8000	19 and be subject to, the following terms, requirements, and
8001	8001	20 limitations:
8002	8002	21 (i) Contracts are for delivery of carbon
8003	8003	22 mitigation credits, and are not energy or capacity
8004	8004	23 sales contracts requiring physical delivery. Pursuant
8005	8005	24 to item (iii), contract payments shall fully deduct
8006	8006	25 the value of any monetized federal production tax
8007	8007	26 credits, credits issued pursuant to a federal clean
8008	8008
8009	8009
8010	8010
8011	8011
8012	8012
8013	8013	SB3949 - 222 - LRB103 40603 LNS 73240 b
8014	8014
8015	8015
8016	8016	SB3949- 223 -LRB103 40603 LNS 73240 b SB3949 - 223 - LRB103 40603 LNS 73240 b
8017	8017	SB3949 - 223 - LRB103 40603 LNS 73240 b
8018	8018	1 energy standard, and other federal credits if
8019	8019	2 applicable.
8020	8020	3 (ii) Contracts for carbon mitigation credits shall
8021	8021	4 commence with the delivery year beginning on June 1,
8022	8022	5 2022 and shall be for a term of 5 delivery years
8023	8023	6 concluding on May 31, 2027.
8024	8024	7 (iii) The price per carbon mitigation credit to be
8025	8025	8 paid under a contract for a given delivery year shall
8026	8026	9 be equal to an accepted bid price less the sum of:
8027	8027	10 (I) one of the following energy price indices,
8028	8028	11 selected by the bidder at the time of the bid for
8029	8029	12 the term of the contract:
8030	8030	13 (aa) the weighted-average hourly day-ahead
8031	8031	14 price for the applicable delivery year at the
8032	8032	15 busbar of all resources procured pursuant to
8033	8033	16 this subsection (d-10), weighted by actual
8034	8034	17 production from the resources; or
8035	8035	18 (bb) the projected energy price for the
8036	8036	19 PJM Interconnection, LLC Northern Illinois Hub
8037	8037	20 for the applicable delivery year determined
8038	8038	21 according to subitem (aa) of item (iii) of
8039	8039	22 subparagraph (B) of paragraph (1) of
8040	8040	23 subsection (d-5).
8041	8041	24 (II) the Base Residual Auction Capacity Price
8042	8042	25 for the ComEd zone as determined by PJM
8043	8043	26 Interconnection, LLC, divided by 24 hours per day,
8044	8044
8045	8045
8046	8046
8047	8047
8048	8048
8049	8049	SB3949 - 223 - LRB103 40603 LNS 73240 b
8050	8050
8051	8051
8052	8052	SB3949- 224 -LRB103 40603 LNS 73240 b SB3949 - 224 - LRB103 40603 LNS 73240 b
8053	8053	SB3949 - 224 - LRB103 40603 LNS 73240 b
8054	8054	1 for the applicable delivery year for the first 3
8055	8055	2 delivery years, and then any subsequent delivery
8056	8056	3 years unless the PJM Interconnection, LLC applies
8057	8057	4 the Minimum Offer Price Rule to participating
8058	8058	5 carbon-free energy resources because they supply
8059	8059	6 carbon mitigation credits pursuant to this Section
8060	8060	7 at which time, upon notice by the carbon-free
8061	8061	8 energy resource to the Commission and subject to
8062	8062	9 the Commission's confirmation, the value under
8063	8063	10 this subitem shall be zero, as further described
8064	8064	11 in the carbon mitigation credit procurement plan;
8065	8065	12 and
8066	8066	13 (III) any value of monetized federal tax
8067	8067	14 credits, direct payments, or similar subsidy
8068	8068	15 provided to the carbon-free energy resource from
8069	8069	16 any unit of government that is not already
8070	8070	17 reflected in energy prices.
8071	8071	18 If the price-per-megawatt-hour calculation
8072	8072	19 performed under item (iii) of this subparagraph (C)
8073	8073	20 for a given delivery year results in a net positive
8074	8074	21 value, then the electric utility counterparty to the
8075	8075	22 contract shall multiply such net value by the
8076	8076	23 applicable contract quantity and remit the amount to
8077	8077	24 the supplier.
8078	8078	25 To protect retail customers from retail rate
8079	8079	26 impacts that may arise upon the initiation of carbon
8080	8080
8081	8081
8082	8082
8083	8083
8084	8084
8085	8085	SB3949 - 224 - LRB103 40603 LNS 73240 b
8086	8086
8087	8087
8088	8088	SB3949- 225 -LRB103 40603 LNS 73240 b SB3949 - 225 - LRB103 40603 LNS 73240 b
8089	8089	SB3949 - 225 - LRB103 40603 LNS 73240 b
8090	8090	1 policy changes, if the price-per-megawatt-hour
8091	8091	2 calculation performed under item (iii) of this
8092	8092	3 subparagraph (C) for a given delivery year results in
8093	8093	4 a net negative value, then the supplier counterparty
8094	8094	5 to the contract shall multiply such net value by the
8095	8095	6 applicable contract quantity and remit such amount to
8096	8096	7 the electric utility counterparty. The electric
8097	8097	8 utility shall reflect such amounts remitted by
8098	8098	9 suppliers as a credit on its retail customer bills as
8099	8099	10 soon as practicable.
8100	8100	11 (iv) To ensure that retail customers in Northern
8101	8101	12 Illinois do not pay more for carbon mitigation credits
8102	8102	13 than the value such credits provide, and
8103	8103	14 notwithstanding the provisions of this subsection
8104	8104	15 (d-10), the Agency shall not accept bids for contracts
8105	8105	16 that exceed a customer protection cap equal to the
8106	8106	17 baseline costs of carbon-free energy resources.
8107	8107	18 The baseline costs for the applicable year shall
8108	8108	19 be the following:
8109	8109	20 (I) For the delivery year beginning June 1,
8110	8110	21 2022, the baseline costs shall be an amount equal
8111	8111	22 to $30.30 per megawatt-hour.
8112	8112	23 (II) For the delivery year beginning June 1,
8113	8113	24 2023, the baseline costs shall be an amount equal
8114	8114	25 to $32.50 per megawatt-hour.
8115	8115	26 (III) For the delivery year beginning June 1,
8116	8116
8117	8117
8118	8118
8119	8119
8120	8120
8121	8121	SB3949 - 225 - LRB103 40603 LNS 73240 b
8122	8122
8123	8123
8124	8124	SB3949- 226 -LRB103 40603 LNS 73240 b SB3949 - 226 - LRB103 40603 LNS 73240 b
8125	8125	SB3949 - 226 - LRB103 40603 LNS 73240 b
8126	8126	1 2024, the baseline costs shall be an amount equal
8127	8127	2 to $33.43 per megawatt-hour.
8128	8128	3 (IV) For the delivery year beginning June 1,
8129	8129	4 2025, the baseline costs shall be an amount equal
8130	8130	5 to $33.50 per megawatt-hour.
8131	8131	6 (V) For the delivery year beginning June 1,
8132	8132	7 2026, the baseline costs shall be an amount equal
8133	8133	8 to $34.50 per megawatt-hour.
8134	8134	9 An Environmental Protection Agency consultant
8135	8135	10 forecast, included in a report issued April 14, 2021,
8136	8136	11 projects that a carbon-free energy resource has the
8137	8137	12 opportunity to earn on average approximately $30.28
8138	8138	13 per megawatt-hour, for the sale of energy and capacity
8139	8139	14 during the time period between 2022 and 2027.
8140	8140	15 Therefore, the sale of carbon mitigation credits
8141	8141	16 provides the opportunity to receive an additional
8142	8142	17 amount per megawatt-hour in addition to the projected
8143	8143	18 prices for energy and capacity.
8144	8144	19 Although actual energy and capacity prices may
8145	8145	20 vary from year-to-year, the General Assembly finds
8146	8146	21 that this customer protection cap will help ensure
8147	8147	22 that the cost of carbon mitigation credits will be
8148	8148	23 less than its value, based upon the social cost of
8149	8149	24 carbon identified in the Technical Support Document
8150	8150	25 issued in February 2021 by the U.S. Interagency
8151	8151	26 Working Group on Social Cost of Greenhouse Gases and
8152	8152
8153	8153
8154	8154
8155	8155
8156	8156
8157	8157	SB3949 - 226 - LRB103 40603 LNS 73240 b
8158	8158
8159	8159
8160	8160	SB3949- 227 -LRB103 40603 LNS 73240 b SB3949 - 227 - LRB103 40603 LNS 73240 b
8161	8161	SB3949 - 227 - LRB103 40603 LNS 73240 b
8162	8162	1 the PJM Interconnection, LLC carbon dioxide marginal
8163	8163	2 emission rate for 2020, and that a carbon-free energy
8164	8164	3 resource receiving payment for carbon mitigation
8165	8165	4 credits receives no more than necessary to keep those
8166	8166	5 units in operation.
8167	8167	6 (D) No later than 7 days after the effective date of
8168	8168	7 this amendatory Act of the 102nd General Assembly, the
8169	8169	8 Agency shall publish its proposed carbon mitigation credit
8170	8170	9 procurement plan. The Plan shall provide that winning bids
8171	8171	10 shall be selected by taking into consideration which
8172	8172	11 resources best match public interest criteria that
8173	8173	12 include, but are not limited to, minimizing carbon dioxide
8174	8174	13 emissions that result from electricity consumed in
8175	8175	14 Illinois and minimizing sulfur dioxide, nitrogen oxide,
8176	8176	15 and particulate matter emissions that adversely affect the
8177	8177	16 citizens of this State. The selection of winning bids
8178	8178	17 shall also take into account the incremental environmental
8179	8179	18 benefits resulting from the procurement or procurements,
8180	8180	19 such as any existing environmental benefits that are
8181	8181	20 preserved by a procurement held under this subsection
8182	8182	21 (d-10) and would cease to exist if the procurement were
8183	8183	22 not held, including the preservation of carbon-free energy
8184	8184	23 resources. For those bidders having the same public
8185	8185	24 interest criteria score, the relative ranking of such
8186	8186	25 bidders shall be determined by price. The Plan shall
8187	8187	26 describe in detail how each public interest factor shall
8188	8188
8189	8189
8190	8190
8191	8191
8192	8192
8193	8193	SB3949 - 227 - LRB103 40603 LNS 73240 b
8194	8194
8195	8195
8196	8196	SB3949- 228 -LRB103 40603 LNS 73240 b SB3949 - 228 - LRB103 40603 LNS 73240 b
8197	8197	SB3949 - 228 - LRB103 40603 LNS 73240 b
8198	8198	1 be considered and weighted in the bid selection process to
8199	8199	2 ensure that the public interest criteria are applied to
8200	8200	3 the procurement. The Plan shall, to the extent practical
8201	8201	4 and permissible by federal law, ensure that successful
8202	8202	5 bidders make commercially reasonable efforts to apply for
8203	8203	6 federal tax credits, direct payments, or similar subsidy
8204	8204	7 programs that support carbon-free generation and for which
8205	8205	8 the successful bidder is eligible. Upon publishing of the
8206	8206	9 carbon mitigation credit procurement plan, copies of the
8207	8207	10 plan shall be posted and made publicly available on the
8208	8208	11 Agency's website. All interested parties shall have 7 days
8209	8209	12 following the date of posting to provide comment to the
8210	8210	13 Agency on the plan. All comments shall be posted to the
8211	8211	14 Agency's website. Following the end of the comment period,
8212	8212	15 but no more than 19 days later than the effective date of
8213	8213	16 this amendatory Act of the 102nd General Assembly, the
8214	8214	17 Agency shall revise the plan as necessary based on the
8215	8215	18 comments received and file its carbon mitigation credit
8216	8216	19 procurement plan with the Commission.
8217	8217	20 (E) If the Commission determines that the plan is
8218	8218	21 likely to result in the procurement of cost-effective
8219	8219	22 carbon mitigation credits, then the Commission shall,
8220	8220	23 after notice and hearing and opportunity for comment, but
8221	8221	24 no later than 42 days after the Agency filed the plan,
8222	8222	25 approve the plan or approve it with modification. For
8223	8223	26 purposes of this subsection (d-10), "cost-effective" means
8224	8224
8225	8225
8226	8226
8227	8227
8228	8228
8229	8229	SB3949 - 228 - LRB103 40603 LNS 73240 b
8230	8230
8231	8231
8232	8232	SB3949- 229 -LRB103 40603 LNS 73240 b SB3949 - 229 - LRB103 40603 LNS 73240 b
8233	8233	SB3949 - 229 - LRB103 40603 LNS 73240 b
8234	8234	1 carbon mitigation credits that are procured from
8235	8235	2 carbon-free energy resources at prices that are within the
8236	8236	3 limits specified in this paragraph (3). As part of the
8237	8237	4 Commission's review and acceptance or rejection of the
8238	8238	5 procurement results, the Commission shall, in its public
8239	8239	6 notice of successful bidders:
8240	8240	7 (i) identify how the selected carbon-free energy
8241	8241	8 resources satisfy the public interest criteria
8242	8242	9 described in this paragraph (3) of minimizing carbon
8243	8243	10 dioxide emissions that result from electricity
8244	8244	11 consumed in Illinois and minimizing sulfur dioxide,
8245	8245	12 nitrogen oxide, and particulate matter emissions that
8246	8246	13 adversely affect the citizens of this State;
8247	8247	14 (ii) specifically address how the selection of
8248	8248	15 carbon-free energy resources takes into account the
8249	8249	16 incremental environmental benefits resulting from the
8250	8250	17 procurement, including any existing environmental
8251	8251	18 benefits that are preserved by the procurements held
8252	8252	19 under this amendatory Act of the 102nd General
8253	8253	20 Assembly and would have ceased to exist if the
8254	8254	21 procurements had not been held, such as the
8255	8255	22 preservation of carbon-free energy resources;
8256	8256	23 (iii) quantify the environmental benefit of
8257	8257	24 preserving the carbon-free energy resources procured
8258	8258	25 pursuant to this subsection (d-10), including the
8259	8259	26 following:
8260	8260
8261	8261
8262	8262
8263	8263
8264	8264
8265	8265	SB3949 - 229 - LRB103 40603 LNS 73240 b
8266	8266
8267	8267
8268	8268	SB3949- 230 -LRB103 40603 LNS 73240 b SB3949 - 230 - LRB103 40603 LNS 73240 b
8269	8269	SB3949 - 230 - LRB103 40603 LNS 73240 b
8270	8270	1 (I) an assessment value of avoided greenhouse
8271	8271	2 gas emissions measured as the product of the
8272	8272	3 carbon-free energy resources' output over the
8273	8273	4 contract term, using generally accepted
8274	8274	5 methodologies for the valuation of avoided
8275	8275	6 emissions; and
8276	8276	7 (II) an assessment of costs of replacement
8277	8277	8 with other carbon-free energy resources and
8278	8278	9 renewable energy resources, including wind and
8279	8279	10 photovoltaic generation, based upon an assessment
8280	8280	11 of the prices paid for renewable energy credits
8281	8281	12 through programs and procurements conducted
8282	8282	13 pursuant to subsection (c) of Section 1-75 of this
8283	8283	14 Act, and the additional storage necessary to
8284	8284	15 produce the same or similar capability of matching
8285	8285	16 customer usage patterns.
8286	8286	17 (F) The procurements described in this paragraph (3),
8287	8287	18 including, but not limited to, the execution of all
8288	8288	19 contracts procured, shall be completed no later than
8289	8289	20 December 3, 2021. The procurement and plan approval
8290	8290	21 processes required by this paragraph (3) shall be
8291	8291	22 conducted in conjunction with the procurement and plan
8292	8292	23 approval processes required by Section 16-111.5 of the
8293	8293	24 Public Utilities Act, to the extent practicable. However,
8294	8294	25 the Agency and Commission may, as appropriate, modify the
8295	8295	26 various dates and timelines under this subparagraph and
8296	8296
8297	8297
8298	8298
8299	8299
8300	8300
8301	8301	SB3949 - 230 - LRB103 40603 LNS 73240 b
8302	8302
8303	8303
8304	8304	SB3949- 231 -LRB103 40603 LNS 73240 b SB3949 - 231 - LRB103 40603 LNS 73240 b
8305	8305	SB3949 - 231 - LRB103 40603 LNS 73240 b
8306	8306	1 subparagraphs (D) and (E) of this paragraph (3) to meet
8307	8307	2 the December 3, 2021 contract execution deadline.
8308	8308	3 Following the completion of such procurements, and
8309	8309	4 consistent with this paragraph (3), the Agency shall
8310	8310	5 calculate the payments to be made under each contract in a
8311	8311	6 timely fashion.
8312	8312	7 (F-1) Costs incurred by the electric utility pursuant
8313	8313	8 to a contract authorized by this subsection (d-10) shall
8314	8314	9 be deemed prudently incurred and reasonable in amount, and
8315	8315	10 the electric utility shall be entitled to full cost
8316	8316	11 recovery pursuant to a tariff or tariffs filed with the
8317	8317	12 Commission.
8318	8318	13 (G) The counterparty electric utility shall retire all
8319	8319	14 carbon mitigation credits used to comply with the
8320	8320	15 requirements of this subsection (d-10).
8321	8321	16 (H) If a carbon-free energy resource is sold to
8322	8322	17 another owner, the rights, obligations, and commitments
8323	8323	18 under this subsection (d-10) shall continue to the
8324	8324	19 subsequent owner.
8325	8325	20 (I) This subsection (d-10) shall become inoperative on
8326	8326	21 January 1, 2028.
8327	8327	22 (e) The draft procurement plans are subject to public
8328	8328	23 comment, as required by Section 16-111.5 of the Public
8329	8329	24 Utilities Act.
8330	8330	25 (f) The Agency shall submit the final procurement plan to
8331	8331	26 the Commission. The Agency shall revise a procurement plan if
8332	8332
8333	8333
8334	8334
8335	8335
8336	8336
8337	8337	SB3949 - 231 - LRB103 40603 LNS 73240 b
8338	8338
8339	8339
8340	8340	SB3949- 232 -LRB103 40603 LNS 73240 b SB3949 - 232 - LRB103 40603 LNS 73240 b
8341	8341	SB3949 - 232 - LRB103 40603 LNS 73240 b
8342	8342	1 the Commission determines that it does not meet the standards
8343	8343	2 set forth in Section 16-111.5 of the Public Utilities Act.
8344	8344	3 (g) The Agency shall assess fees to each affected utility
8345	8345	4 to recover the costs incurred in preparation of the annual
8346	8346	5 procurement plan for the utility.
8347	8347	6 (h) The Agency shall assess fees to each bidder to recover
8348	8348	7 the costs incurred in connection with a competitive
8349	8349	8 procurement process.
8350	8350	9 (i) A renewable energy credit, carbon emission credit,
8351	8351	10 zero emission credit, or carbon mitigation credit can only be
8352	8352	11 used once to comply with a single portfolio or other standard
8353	8353	12 as set forth in subsection (c), subsection (d), or subsection
8354	8354	13 (d-5) of this Section, respectively. A renewable energy
8355	8355	14 credit, carbon emission credit, zero emission credit, or
8356	8356	15 carbon mitigation credit cannot be used to satisfy the
8357	8357	16 requirements of more than one standard. If more than one type
8358	8358	17 of credit is issued for the same megawatt hour of energy, only
8359	8359	18 one credit can be used to satisfy the requirements of a single
8360	8360	19 standard. After such use, the credit must be retired together
8361	8361	20 with any other credits issued for the same megawatt hour of
8362	8362	21 energy.
8363	8363	22 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
8364	8364	23 103-580, eff. 12-8-23.)
8365	8365	24 (20 ILCS 3855/1-126 new)
8366	8366	25 Sec. 1-126. Transmission systems report. No later than
8367	8367
8368	8368
8369	8369
8370	8370
8371	8371
8372	8372	SB3949 - 232 - LRB103 40603 LNS 73240 b
8373	8373
8374	8374
8375	8375	SB3949- 233 -LRB103 40603 LNS 73240 b SB3949 - 233 - LRB103 40603 LNS 73240 b
8376	8376	SB3949 - 233 - LRB103 40603 LNS 73240 b
8377	8377	1 December 1, 2024, the Agency shall create and issue a report
8378	8378	2 that describes how transmission systems limit the ability of
8379	8379	3 electric utilities to meet renewable resource procurement
8380	8380	4 goals described in subsection (c) of Section 1-75, including,
8381	8381	5 but not limited to, constraints on transmission
8382	8382	6 interconnection, the transmission capacity to transmit
8383	8383	7 renewable energy resources into this State, and the
8384	8384	8 opportunities to procure renewable energy resources associated
8385	8385	9 with specific existing or proposed transmission assets. The
8386	8386	10 Agency shall evaluate transmission lines and high voltage
8387	8387	11 direct current transmission facilities that connect one or
8388	8388	12 more independent system operator or regional transmission
8389	8389	13 organizations so that renewable energy resources can be
8390	8390	14 transmitted to electrical load centers. The Agency shall
8391	8391	15 solicit stakeholder feedback and incorporate that feedback in
8392	8392	16 its report.
8393	8393	17 Section 20. The Public Utilities Act is amended by
8394	8394	18 changing Sections 3-105, 16-108, 16-111.5, and 16-111.11 as
8395	8395	19 follows:
8396	8396	20 (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
8397	8397	21 Sec. 3-105. Public utility.
8398	8398	22 (a) "Public utility" means and includes, except where
8399	8399	23 otherwise expressly provided in this Section, every
8400	8400	24 corporation, company, limited liability company, association,
8401	8401
8402	8402
8403	8403
8404	8404
8405	8405
8406	8406	SB3949 - 233 - LRB103 40603 LNS 73240 b
8407	8407
8408	8408
8409	8409	SB3949- 234 -LRB103 40603 LNS 73240 b SB3949 - 234 - LRB103 40603 LNS 73240 b
8410	8410	SB3949 - 234 - LRB103 40603 LNS 73240 b
8411	8411	1 joint stock company or association, firm, partnership or
8412	8412	2 individual, their lessees, trustees, or receivers appointed by
8413	8413	3 any court whatsoever that owns, controls, operates or manages,
8414	8414	4 within this State, directly or indirectly, for public use, any
8415	8415	5 plant, equipment, or property used or to be used for or in
8416	8416	6 connection with, or now owns or is seeking Commission approval
8417	8417	7 to own or control controls any franchise, license, permit or
8418	8418	8 right to engage in:
8419	8419	9 (1) the production, storage, transmission, sale,
8420	8420	10 delivery or furnishing of heat, cold, power, electricity,
8421	8421	11 water, or light, except when used solely for
8422	8422	12 communications purposes;
8423	8423	13 (2) the disposal of sewerage; or
8424	8424	14 (3) the conveyance of oil or gas by pipe line.
8425	8425	15 (b) "Public utility" does not include, however:
8426	8426	16 (1) public utilities that are owned and operated by
8427	8427	17 any political subdivision, public institution of higher
8428	8428	18 education or municipal corporation of this State, or
8429	8429	19 public utilities that are owned by such political
8430	8430	20 subdivision, public institution of higher education, or
8431	8431	21 municipal corporation and operated by any of its lessees
8432	8432	22 or operating agents;
8433	8433	23 (2) water companies which are purely mutual concerns,
8434	8434	24 having no rates or charges for services, but paying the
8435	8435	25 operating expenses by assessment upon the members of such
8436	8436	26 a company and no other person;
8437	8437
8438	8438
8439	8439
8440	8440
8441	8441
8442	8442	SB3949 - 234 - LRB103 40603 LNS 73240 b
8443	8443
8444	8444
8445	8445	SB3949- 235 -LRB103 40603 LNS 73240 b SB3949 - 235 - LRB103 40603 LNS 73240 b
8446	8446	SB3949 - 235 - LRB103 40603 LNS 73240 b
8447	8447	1 (3) electric cooperatives as defined in Section 3-119;
8448	8448	2 (4) the following natural gas cooperatives:
8449	8449	3 (A) residential natural gas cooperatives that are
8450	8450	4 not-for-profit corporations established for the
8451	8451	5 purpose of administering and operating, on a
8452	8452	6 cooperative basis, the furnishing of natural gas to
8453	8453	7 residences for the benefit of their members who are
8454	8454	8 residential consumers of natural gas. For entities
8455	8455	9 qualifying as residential natural gas cooperatives and
8456	8456	10 recognized by the Illinois Commerce Commission as
8457	8457	11 such, the State shall guarantee legally binding
8458	8458	12 contracts entered into by residential natural gas
8459	8459	13 cooperatives for the express purpose of acquiring
8460	8460	14 natural gas supplies for their members. The Illinois
8461	8461	15 Commerce Commission shall establish rules and
8462	8462	16 regulations providing for such guarantees. The total
8463	8463	17 liability of the State in providing all such
8464	8464	18 guarantees shall not at any time exceed $1,000,000,
8465	8465	19 nor shall the State provide such a guarantee to a
8466	8466	20 residential natural gas cooperative for more than 3
8467	8467	21 consecutive years; and
8468	8468	22 (B) natural gas cooperatives that are
8469	8469	23 not-for-profit corporations operated for the purpose
8470	8470	24 of administering, on a cooperative basis, the
8471	8471	25 furnishing of natural gas for the benefit of their
8472	8472	26 members and that, prior to 90 days after the effective
8473	8473
8474	8474
8475	8475
8476	8476
8477	8477
8478	8478	SB3949 - 235 - LRB103 40603 LNS 73240 b
8479	8479
8480	8480
8481	8481	SB3949- 236 -LRB103 40603 LNS 73240 b SB3949 - 236 - LRB103 40603 LNS 73240 b
8482	8482	SB3949 - 236 - LRB103 40603 LNS 73240 b
8483	8483	1 date of this amendatory Act of the 94th General
8484	8484	2 Assembly, either had acquired or had entered into an
8485	8485	3 asset purchase agreement to acquire all or
8486	8486	4 substantially all of the operating assets of a public
8487	8487	5 utility or natural gas cooperative with the intention
8488	8488	6 of operating those assets as a natural gas
8489	8489	7 cooperative;
8490	8490	8 (5) sewage disposal companies which provide sewage
8491	8491	9 disposal services on a mutual basis without establishing
8492	8492	10 rates or charges for services, but paying the operating
8493	8493	11 expenses by assessment upon the members of the company and
8494	8494	12 no others;
8495	8495	13 (6) (blank);
8496	8496	14 (7) cogeneration facilities, small power production
8497	8497	15 facilities, and other qualifying facilities, as defined in
8498	8498	16 the Public Utility Regulatory Policies Act and regulations
8499	8499	17 promulgated thereunder, except to the extent State
8500	8500	18 regulatory jurisdiction and action is required or
8501	8501	19 authorized by federal law, regulations, regulatory
8502	8502	20 decisions or the decisions of federal or State courts of
8503	8503	21 competent jurisdiction;
8504	8504	22 (8) the ownership or operation of a facility that
8505	8505	23 sells compressed natural gas at retail to the public for
8506	8506	24 use only as a motor vehicle fuel and the selling of
8507	8507	25 compressed natural gas at retail to the public for use
8508	8508	26 only as a motor vehicle fuel;
8509	8509
8510	8510
8511	8511
8512	8512
8513	8513
8514	8514	SB3949 - 236 - LRB103 40603 LNS 73240 b
8515	8515
8516	8516
8517	8517	SB3949- 237 -LRB103 40603 LNS 73240 b SB3949 - 237 - LRB103 40603 LNS 73240 b
8518	8518	SB3949 - 237 - LRB103 40603 LNS 73240 b
8519	8519	1 (9) alternative retail electric suppliers as defined
8520	8520	2 in Article XVI; and
8521	8521	3 (10) the Illinois Power Agency.
8522	8522	4 (c) An entity that furnishes the service of charging
8523	8523	5 electric vehicles does not and shall not be deemed to sell
8524	8524	6 electricity and is not and shall not be deemed a public utility
8525	8525	7 notwithstanding the basis on which the service is provided or
8526	8526	8 billed. If, however, the entity is otherwise deemed a public
8527	8527	9 utility under this Act, or is otherwise subject to regulation
8528	8528	10 under this Act, then that entity is not exempt from and remains
8529	8529	11 subject to the otherwise applicable provisions of this Act.
8530	8530	12 The installation, maintenance, and repair of an electric
8531	8531	13 vehicle charging station shall comply with the requirements of
8532	8532	14 subsection (a) of Section 16-128 and Section 16-128A of this
8533	8533	15 Act.
8534	8534	16 For purposes of this subsection, the term "electric
8535	8535	17 vehicles" has the meaning ascribed to that term in Section 10
8536	8536	18 of the Electric Vehicle Act.
8537	8537	19 (Source: P.A. 97-1128, eff. 8-28-12.)
8538	8538	20 (220 ILCS 5/16-108)
8539	8539	21 Sec. 16-108. Recovery of costs associated with the
8540	8540	22 provision of delivery and other services.
8541	8541	23 (a) An electric utility shall file a delivery services
8542	8542	24 tariff with the Commission at least 210 days prior to the date
8543	8543	25 that it is required to begin offering such services pursuant
8544	8544
8545	8545
8546	8546
8547	8547
8548	8548
8549	8549	SB3949 - 237 - LRB103 40603 LNS 73240 b
8550	8550
8551	8551
8552	8552	SB3949- 238 -LRB103 40603 LNS 73240 b SB3949 - 238 - LRB103 40603 LNS 73240 b
8553	8553	SB3949 - 238 - LRB103 40603 LNS 73240 b
8554	8554	1 to this Act. An electric utility shall provide the components
8555	8555	2 of delivery services that are subject to the jurisdiction of
8556	8556	3 the Federal Energy Regulatory Commission at the same prices,
8557	8557	4 terms and conditions set forth in its applicable tariff as
8558	8558	5 approved or allowed into effect by that Commission. The
8559	8559	6 Commission shall otherwise have the authority pursuant to
8560	8560	7 Article IX to review, approve, and modify the prices, terms
8561	8561	8 and conditions of those components of delivery services not
8562	8562	9 subject to the jurisdiction of the Federal Energy Regulatory
8563	8563	10 Commission, including the authority to determine the extent to
8564	8564	11 which such delivery services should be offered on an unbundled
8565	8565	12 basis. In making any such determination the Commission shall
8566	8566	13 consider, at a minimum, the effect of additional unbundling on
8567	8567	14 (i) the objective of just and reasonable rates, (ii) electric
8568	8568	15 utility employees, and (iii) the development of competitive
8569	8569	16 markets for electric energy services in Illinois.
8570	8570	17 (b) The Commission shall enter an order approving, or
8571	8571	18 approving as modified, the delivery services tariff no later
8572	8572	19 than 30 days prior to the date on which the electric utility
8573	8573	20 must commence offering such services. The Commission may
8574	8574	21 subsequently modify such tariff pursuant to this Act.
8575	8575	22 (c) The electric utility's tariffs shall define the
8576	8576	23 classes of its customers for purposes of delivery services
8577	8577	24 charges. Delivery services shall be priced and made available
8578	8578	25 to all retail customers electing delivery services in each
8579	8579	26 such class on a nondiscriminatory basis regardless of whether
8580	8580
8581	8581
8582	8582
8583	8583
8584	8584
8585	8585	SB3949 - 238 - LRB103 40603 LNS 73240 b
8586	8586
8587	8587
8588	8588	SB3949- 239 -LRB103 40603 LNS 73240 b SB3949 - 239 - LRB103 40603 LNS 73240 b
8589	8589	SB3949 - 239 - LRB103 40603 LNS 73240 b
8590	8590	1 the retail customer chooses the electric utility, an affiliate
8591	8591	2 of the electric utility, or another entity as its supplier of
8592	8592	3 electric power and energy. Charges for delivery services shall
8593	8593	4 be cost based, and shall allow the electric utility to recover
8594	8594	5 the costs of providing delivery services through its charges
8595	8595	6 to its delivery service customers that use the facilities and
8596	8596	7 services associated with such costs. Such costs shall include
8597	8597	8 the costs of owning, operating and maintaining transmission
8598	8598	9 and distribution facilities. The Commission shall also be
8599	8599	10 authorized to consider whether, and if so to what extent, the
8600	8600	11 following costs are appropriately included in the electric
8601	8601	12 utility's delivery services rates: (i) the costs of that
8602	8602	13 portion of generation facilities used for the production and
8603	8603	14 absorption of reactive power in order that retail customers
8604	8604	15 located in the electric utility's service area can receive
8605	8605	16 electric power and energy from suppliers other than the
8606	8606	17 electric utility, and (ii) the costs associated with the use
8607	8607	18 and redispatch of generation facilities to mitigate
8608	8608	19 constraints on the transmission or distribution system in
8609	8609	20 order that retail customers located in the electric utility's
8610	8610	21 service area can receive electric power and energy from
8611	8611	22 suppliers other than the electric utility. Nothing in this
8612	8612	23 subsection shall be construed as directing the Commission to
8613	8613	24 allocate any of the costs described in (i) or (ii) that are
8614	8614	25 found to be appropriately included in the electric utility's
8615	8615	26 delivery services rates to any particular customer group or
8616	8616
8617	8617
8618	8618
8619	8619
8620	8620
8621	8621	SB3949 - 239 - LRB103 40603 LNS 73240 b
8622	8622
8623	8623
8624	8624	SB3949- 240 -LRB103 40603 LNS 73240 b SB3949 - 240 - LRB103 40603 LNS 73240 b
8625	8625	SB3949 - 240 - LRB103 40603 LNS 73240 b
8626	8626	1 geographic area in setting delivery services rates.
8627	8627	2 (d) The Commission shall establish charges, terms and
8628	8628	3 conditions for delivery services that are just and reasonable
8629	8629	4 and shall take into account customer impacts when establishing
8630	8630	5 such charges. In establishing charges, terms and conditions
8631	8631	6 for delivery services, the Commission shall take into account
8632	8632	7 voltage level differences. A retail customer shall have the
8633	8633	8 option to request to purchase electric service at any delivery
8634	8634	9 service voltage reasonably and technically feasible from the
8635	8635	10 electric facilities serving that customer's premises provided
8636	8636	11 that there are no significant adverse impacts upon system
8637	8637	12 reliability or system efficiency. A retail customer shall also
8638	8638	13 have the option to request to purchase electric service at any
8639	8639	14 point of delivery that is reasonably and technically feasible
8640	8640	15 provided that there are no significant adverse impacts on
8641	8641	16 system reliability or efficiency. Such requests shall not be
8642	8642	17 unreasonably denied.
8643	8643	18 (e) Electric utilities shall recover the costs of
8644	8644	19 installing, operating or maintaining facilities for the
8645	8645	20 particular benefit of one or more delivery services customers,
8646	8646	21 including without limitation any costs incurred in complying
8647	8647	22 with a customer's request to be served at a different voltage
8648	8648	23 level, directly from the retail customer or customers for
8649	8649	24 whose benefit the costs were incurred, to the extent such
8650	8650	25 costs are not recovered through the charges referred to in
8651	8651	26 subsections (c) and (d) of this Section.
8652	8652
8653	8653
8654	8654
8655	8655
8656	8656
8657	8657	SB3949 - 240 - LRB103 40603 LNS 73240 b
8658	8658
8659	8659
8660	8660	SB3949- 241 -LRB103 40603 LNS 73240 b SB3949 - 241 - LRB103 40603 LNS 73240 b
8661	8661	SB3949 - 241 - LRB103 40603 LNS 73240 b
8662	8662	1 (f) An electric utility shall be entitled but not required
8663	8663	2 to implement transition charges in conjunction with the
8664	8664	3 offering of delivery services pursuant to Section 16-104. If
8665	8665	4 an electric utility implements transition charges, it shall
8666	8666	5 implement such charges for all delivery services customers and
8667	8667	6 for all customers described in subsection (h), but shall not
8668	8668	7 implement transition charges for power and energy that a
8669	8669	8 retail customer takes from cogeneration or self-generation
8670	8670	9 facilities located on that retail customer's premises, if such
8671	8671	10 facilities meet the following criteria:
8672	8672	11 (i) the cogeneration or self-generation facilities
8673	8673	12 serve a single retail customer and are located on that
8674	8674	13 retail customer's premises (for purposes of this
8675	8675	14 subparagraph and subparagraph (ii), an industrial or
8676	8676	15 manufacturing retail customer and a third party contractor
8677	8677	16 that is served by such industrial or manufacturing
8678	8678	17 customer through such retail customer's own electrical
8679	8679	18 distribution facilities under the circumstances described
8680	8680	19 in subsection (vi) of the definition of "alternative
8681	8681	20 retail electric supplier" set forth in Section 16-102,
8682	8682	21 shall be considered a single retail customer);
8683	8683	22 (ii) the cogeneration or self-generation facilities
8684	8684	23 either (A) are sized pursuant to generally accepted
8685	8685	24 engineering standards for the retail customer's electrical
8686	8686	25 load at that premises (taking into account standby or
8687	8687	26 other reliability considerations related to that retail
8688	8688
8689	8689
8690	8690
8691	8691
8692	8692
8693	8693	SB3949 - 241 - LRB103 40603 LNS 73240 b
8694	8694
8695	8695
8696	8696	SB3949- 242 -LRB103 40603 LNS 73240 b SB3949 - 242 - LRB103 40603 LNS 73240 b
8697	8697	SB3949 - 242 - LRB103 40603 LNS 73240 b
8698	8698	1 customer's operations at that site) or (B) if the facility
8699	8699	2 is a cogeneration facility located on the retail
8700	8700	3 customer's premises, the retail customer is the thermal
8701	8701	4 host for that facility and the facility has been designed
8702	8702	5 to meet that retail customer's thermal energy requirements
8703	8703	6 resulting in electrical output beyond that retail
8704	8704	7 customer's electrical demand at that premises, comply with
8705	8705	8 the operating and efficiency standards applicable to
8706	8706	9 "qualifying facilities" specified in title 18 Code of
8707	8707	10 Federal Regulations Section 292.205 as in effect on the
8708	8708	11 effective date of this amendatory Act of 1999;
8709	8709	12 (iii) the retail customer on whose premises the
8710	8710	13 facilities are located either has an exclusive right to
8711	8711	14 receive, and corresponding obligation to pay for, all of
8712	8712	15 the electrical capacity of the facility, or in the case of
8713	8713	16 a cogeneration facility that has been designed to meet the
8714	8714	17 retail customer's thermal energy requirements at that
8715	8715	18 premises, an identified amount of the electrical capacity
8716	8716	19 of the facility, over a minimum 5-year period; and
8717	8717	20 (iv) if the cogeneration facility is sized for the
8718	8718	21 retail customer's thermal load at that premises but
8719	8719	22 exceeds the electrical load, any sales of excess power or
8720	8720	23 energy are made only at wholesale, are subject to the
8721	8721	24 jurisdiction of the Federal Energy Regulatory Commission,
8722	8722	25 and are not for the purpose of circumventing the
8723	8723	26 provisions of this subsection (f).
8724	8724
8725	8725
8726	8726
8727	8727
8728	8728
8729	8729	SB3949 - 242 - LRB103 40603 LNS 73240 b
8730	8730
8731	8731
8732	8732	SB3949- 243 -LRB103 40603 LNS 73240 b SB3949 - 243 - LRB103 40603 LNS 73240 b
8733	8733	SB3949 - 243 - LRB103 40603 LNS 73240 b
8734	8734	1 If a generation facility located at a retail customer's
8735	8735	2 premises does not meet the above criteria, an electric utility
8736	8736	3 implementing transition charges shall implement a transition
8737	8737	4 charge until December 31, 2006 for any power and energy taken
8738	8738	5 by such retail customer from such facility as if such power and
8739	8739	6 energy had been delivered by the electric utility. Provided,
8740	8740	7 however, that an industrial retail customer that is taking
8741	8741	8 power from a generation facility that does not meet the above
8742	8742	9 criteria but that is located on such customer's premises will
8743	8743	10 not be subject to a transition charge for the power and energy
8744	8744	11 taken by such retail customer from such generation facility if
8745	8745	12 the facility does not serve any other retail customer and
8746	8746	13 either was installed on behalf of the customer and for its own
8747	8747	14 use prior to January 1, 1997, or is both predominantly fueled
8748	8748	15 by byproducts of such customer's manufacturing process at such
8749	8749	16 premises and sells or offers an average of 300 megawatts or
8750	8750	17 more of electricity produced from such generation facility
8751	8751	18 into the wholesale market. Such charges shall be calculated as
8752	8752	19 provided in Section 16-102, and shall be collected on each
8753	8753	20 kilowatt-hour delivered under a delivery services tariff to a
8754	8754	21 retail customer from the date the customer first takes
8755	8755	22 delivery services until December 31, 2006 except as provided
8756	8756	23 in subsection (h) of this Section. Provided, however, that an
8757	8757	24 electric utility, other than an electric utility providing
8758	8758	25 service to at least 1,000,000 customers in this State on
8759	8759	26 January 1, 1999, shall be entitled to petition for entry of an
8760	8760
8761	8761
8762	8762
8763	8763
8764	8764
8765	8765	SB3949 - 243 - LRB103 40603 LNS 73240 b
8766	8766
8767	8767
8768	8768	SB3949- 244 -LRB103 40603 LNS 73240 b SB3949 - 244 - LRB103 40603 LNS 73240 b
8769	8769	SB3949 - 244 - LRB103 40603 LNS 73240 b
8770	8770	1 order by the Commission authorizing the electric utility to
8771	8771	2 implement transition charges for an additional period ending
8772	8772	3 no later than December 31, 2008. The electric utility shall
8773	8773	4 file its petition with supporting evidence no earlier than 16
8774	8774	5 months, and no later than 12 months, prior to December 31,
8775	8775	6 2006. The Commission shall hold a hearing on the electric
8776	8776	7 utility's petition and shall enter its order no later than 8
8777	8777	8 months after the petition is filed. The Commission shall
8778	8778	9 determine whether and to what extent the electric utility
8779	8779	10 shall be authorized to implement transition charges for an
8780	8780	11 additional period. The Commission may authorize the electric
8781	8781	12 utility to implement transition charges for some or all of the
8782	8782	13 additional period, and shall determine the mitigation factors
8783	8783	14 to be used in implementing such transition charges; provided,
8784	8784	15 that the Commission shall not authorize mitigation factors
8785	8785	16 less than 110% of those in effect during the 12 months ended
8786	8786	17 December 31, 2006. In making its determination, the Commission
8787	8787	18 shall consider the following factors: the necessity to
8788	8788	19 implement transition charges for an additional period in order
8789	8789	20 to maintain the financial integrity of the electric utility;
8790	8790	21 the prudence of the electric utility's actions in reducing its
8791	8791	22 costs since the effective date of this amendatory Act of 1997;
8792	8792	23 the ability of the electric utility to provide safe, adequate
8793	8793	24 and reliable service to retail customers in its service area;
8794	8794	25 and the impact on competition of allowing the electric utility
8795	8795	26 to implement transition charges for the additional period.
8796	8796
8797	8797
8798	8798
8799	8799
8800	8800
8801	8801	SB3949 - 244 - LRB103 40603 LNS 73240 b
8802	8802
8803	8803
8804	8804	SB3949- 245 -LRB103 40603 LNS 73240 b SB3949 - 245 - LRB103 40603 LNS 73240 b
8805	8805	SB3949 - 245 - LRB103 40603 LNS 73240 b
8806	8806	1 (g) The electric utility shall file tariffs that establish
8807	8807	2 the transition charges to be paid by each class of customers to
8808	8808	3 the electric utility in conjunction with the provision of
8809	8809	4 delivery services. The electric utility's tariffs shall define
8810	8810	5 the classes of its customers for purposes of calculating
8811	8811	6 transition charges. The electric utility's tariffs shall
8812	8812	7 provide for the calculation of transition charges on a
8813	8813	8 customer-specific basis for any retail customer whose average
8814	8814	9 monthly maximum electrical demand on the electric utility's
8815	8815	10 system during the 6 months with the customer's highest monthly
8816	8816	11 maximum electrical demands equals or exceeds 3.0 megawatts for
8817	8817	12 electric utilities having more than 1,000,000 customers, and
8818	8818	13 for other electric utilities for any customer that has an
8819	8819	14 average monthly maximum electrical demand on the electric
8820	8820	15 utility's system of one megawatt or more, and (A) for which
8821	8821	16 there exists data on the customer's usage during the 3 years
8822	8822	17 preceding the date that the customer became eligible to take
8823	8823	18 delivery services, or (B) for which there does not exist data
8824	8824	19 on the customer's usage during the 3 years preceding the date
8825	8825	20 that the customer became eligible to take delivery services,
8826	8826	21 if in the electric utility's reasonable judgment there exists
8827	8827	22 comparable usage information or a sufficient basis to develop
8828	8828	23 such information, and further provided that the electric
8829	8829	24 utility can require customers for which an individual
8830	8830	25 calculation is made to sign contracts that set forth the
8831	8831	26 transition charges to be paid by the customer to the electric
8832	8832
8833	8833
8834	8834
8835	8835
8836	8836
8837	8837	SB3949 - 245 - LRB103 40603 LNS 73240 b
8838	8838
8839	8839
8840	8840	SB3949- 246 -LRB103 40603 LNS 73240 b SB3949 - 246 - LRB103 40603 LNS 73240 b
8841	8841	SB3949 - 246 - LRB103 40603 LNS 73240 b
8842	8842	1 utility pursuant to the tariff.
8843	8843	2 (h) An electric utility shall also be entitled to file
8844	8844	3 tariffs that allow it to collect transition charges from
8845	8845	4 retail customers in the electric utility's service area that
8846	8846	5 do not take delivery services but that take electric power or
8847	8847	6 energy from an alternative retail electric supplier or from an
8848	8848	7 electric utility other than the electric utility in whose
8849	8849	8 service area the customer is located. Such charges shall be
8850	8850	9 calculated, in accordance with the definition of transition
8851	8851	10 charges in Section 16-102, for the period of time that the
8852	8852	11 customer would be obligated to pay transition charges if it
8853	8853	12 were taking delivery services, except that no deduction for
8854	8854	13 delivery services revenues shall be made in such calculation,
8855	8855	14 and usage data from the customer's class shall be used where
8856	8856	15 historical usage data is not available for the individual
8857	8857	16 customer. The customer shall be obligated to pay such charges
8858	8858	17 on a lump sum basis on or before the date on which the customer
8859	8859	18 commences to take service from the alternative retail electric
8860	8860	19 supplier or other electric utility, provided, that the
8861	8861	20 electric utility in whose service area the customer is located
8862	8862	21 shall offer the customer the option of signing a contract
8863	8863	22 pursuant to which the customer pays such charges ratably over
8864	8864	23 the period in which the charges would otherwise have applied.
8865	8865	24 (i) An electric utility shall be entitled to add to the
8866	8866	25 bills of delivery services customers charges pursuant to
8867	8867	26 Sections 9-221, 9-222 (except as provided in Section 9-222.1),
8868	8868
8869	8869
8870	8870
8871	8871
8872	8872
8873	8873	SB3949 - 246 - LRB103 40603 LNS 73240 b
8874	8874
8875	8875
8876	8876	SB3949- 247 -LRB103 40603 LNS 73240 b SB3949 - 247 - LRB103 40603 LNS 73240 b
8877	8877	SB3949 - 247 - LRB103 40603 LNS 73240 b
8878	8878	1 and Section 16-114 of this Act, Section 5-5 of the Electricity
8879	8879	2 Infrastructure Maintenance Fee Law, Section 6-5 of the
8880	8880	3 Renewable Energy, Energy Efficiency, and Coal Resources
8881	8881	4 Development Law of 1997, and Section 13 of the Energy
8882	8882	5 Assistance Act.
8883	8883	6 (i-5) An electric utility required to impose the Coal to
8884	8884	7 Solar and Energy Storage Initiative Charge provided for in
8885	8885	8 subsection (c-5) of Section 1-75 of the Illinois Power Agency
8886	8886	9 Act shall add such charge to the bills of its delivery services
8887	8887	10 customers pursuant to the terms of a tariff conforming to the
8888	8888	11 requirements of subsection (c-5) of Section 1-75 of the
8889	8889	12 Illinois Power Agency Act and this subsection (i-5) and filed
8890	8890	13 with and approved by the Commission. The electric utility
8891	8891	14 shall file its proposed tariff with the Commission on or
8892	8892	15 before July 1, 2022 to be effective, after review and approval
8893	8893	16 or modification by the Commission, beginning January 1, 2023.
8894	8894	17 On or before December 1, 2022, the Commission shall review the
8895	8895	18 electric utility's proposed tariff, including by conducting a
8896	8896	19 docketed proceeding if deemed necessary by the Commission, and
8897	8897	20 shall approve the proposed tariff or direct the electric
8898	8898	21 utility to make modifications the Commission finds necessary
8899	8899	22 for the tariff to conform to the requirements of subsection
8900	8900	23 (c-5) of Section 1-75 of the Illinois Power Agency Act and this
8901	8901	24 subsection (i-5). The electric utility's tariff shall provide
8902	8902	25 for imposition of the Coal to Solar and Energy Storage
8903	8903	26 Initiative Charge on a per-kilowatthour basis to all
8904	8904
8905	8905
8906	8906
8907	8907
8908	8908
8909	8909	SB3949 - 247 - LRB103 40603 LNS 73240 b
8910	8910
8911	8911
8912	8912	SB3949- 248 -LRB103 40603 LNS 73240 b SB3949 - 248 - LRB103 40603 LNS 73240 b
8913	8913	SB3949 - 248 - LRB103 40603 LNS 73240 b
8914	8914	1 kilowatthours delivered by the electric utility to its
8915	8915	2 delivery services customers. The tariff shall provide for the
8916	8916	3 calculation of the Coal to Solar and Energy Storage Initiative
8917	8917	4 Charge to be in effect for the year beginning January 1, 2023
8918	8918	5 and each year beginning January 1 thereafter, sufficient to
8919	8919	6 collect the electric utility's estimated payment obligations
8920	8920	7 for the delivery year beginning the following June 1 under
8921	8921	8 contracts for purchase of renewable energy credits entered
8922	8922	9 into pursuant to subsection (c-5) of Section 1-75 of the
8923	8923	10 Illinois Power Agency Act and the obligations of the
8924	8924	11 Department of Commerce and Economic Opportunity, or any
8925	8925	12 successor department or agency, which for purposes of this
8926	8926	13 subsection (i-5) shall be referred to as the Department, to
8927	8927	14 make grant payments during such delivery year from the Coal to
8928	8928	15 Solar and Energy Storage Initiative Fund pursuant to grant
8929	8929	16 contracts entered into pursuant to subsection (c-5) of Section
8930	8930	17 1-75 of the Illinois Power Agency Act, and using the electric
8931	8931	18 utility's kilowatthour deliveries to its delivery services
8932	8932	19 customers during the delivery year ended May 31 of the
8933	8933	20 preceding calendar year. On or before November 1 of each year
8934	8934	21 beginning November 1, 2022, the Department shall notify the
8935	8935	22 electric utilities of the amount of the Department's estimated
8936	8936	23 obligations for grant payments during the delivery year
8937	8937	24 beginning the following June 1 pursuant to grant contracts
8938	8938	25 entered into pursuant to subsection (c-5) of Section 1-75 of
8939	8939	26 the Illinois Power Agency Act; and each electric utility shall
8940	8940
8941	8941
8942	8942
8943	8943
8944	8944
8945	8945	SB3949 - 248 - LRB103 40603 LNS 73240 b
8946	8946
8947	8947
8948	8948	SB3949- 249 -LRB103 40603 LNS 73240 b SB3949 - 249 - LRB103 40603 LNS 73240 b
8949	8949	SB3949 - 249 - LRB103 40603 LNS 73240 b
8950	8950	1 incorporate in the calculation of its Coal to Solar and Energy
8951	8951	2 Storage Initiative Charge the fractional portion of the
8952	8952	3 Department's estimated obligations equal to the electric
8953	8953	4 utility's kilowatthour deliveries to its delivery services
8954	8954	5 customers in the delivery year ended the preceding May 31
8955	8955	6 divided by the aggregate deliveries of both electric utilities
8956	8956	7 to delivery services customers in such delivery year. The
8957	8957	8 electric utility shall remit on a monthly basis to the State
8958	8958	9 Treasurer, for deposit in the Coal to Solar and Energy Storage
8959	8959	10 Initiative Fund provided for in subsection (c-5) of Section
8960	8960	11 1-75 of the Illinois Power Agency Act, the electric utility's
8961	8961	12 collections of the Coal to Solar and Energy Storage Initiative
8962	8962	13 Charge estimated to be needed by the Department for grant
8963	8963	14 payments pursuant to grant contracts entered into pursuant to
8964	8964	15 subsection (c-5) of Section 1-75 of the Illinois Power Agency
8965	8965	16 Act. The initial charge under the electric utility's tariff
8966	8966	17 shall be effective for kilowatthours delivered beginning
8967	8967	18 January 1, 2023, and thereafter shall be revised to be
8968	8968	19 effective January 1, 2024 and each January 1 thereafter, based
8969	8969	20 on the payment obligations for the delivery year beginning the
8970	8970	21 following June 1. The tariff shall provide for the electric
8971	8971	22 utility to make an annual filing with the Commission on or
8972	8972	23 before November 15 of each year, beginning in 2023, setting
8973	8973	24 forth the Coal to Solar and Energy Storage Initiative Charge
8974	8974	25 to be in effect for the year beginning the following January 1.
8975	8975	26 The electric utility's tariff shall also provide that the
8976	8976
8977	8977
8978	8978
8979	8979
8980	8980
8981	8981	SB3949 - 249 - LRB103 40603 LNS 73240 b
8982	8982
8983	8983
8984	8984	SB3949- 250 -LRB103 40603 LNS 73240 b SB3949 - 250 - LRB103 40603 LNS 73240 b
8985	8985	SB3949 - 250 - LRB103 40603 LNS 73240 b
8986	8986	1 electric utility shall make a filing with the Commission on or
8987	8987	2 before August 1 of each year beginning in 2024 setting forth a
8988	8988	3 reconciliation, for the delivery year ended the preceding May
8989	8989	4 31, of the electric utility's collections of the Coal to Solar
8990	8990	5 and Energy Storage Initiative Charge against actual payments
8991	8991	6 for renewable energy credits pursuant to contracts entered
8992	8992	7 into, and the actual grant payments by the Department pursuant
8993	8993	8 to grant contracts entered into, pursuant to subsection (c-5)
8994	8994	9 of Section 1-75 of the Illinois Power Agency Act. The tariff
8995	8995	10 shall provide that any excess or shortfall of collections to
8996	8996	11 payments shall be deducted from or added to, on a
8997	8997	12 per-kilowatthour basis, the Coal to Solar and Energy Storage
8998	8998	13 Initiative Charge, over the 6-month period beginning October 1
8999	8999	14 of that calendar year.
9000	9000	15 (i-10) An electric utility that has entered into a
9001	9001	16 contract to purchase high voltage direct current renewable
9002	9002	17 energy credits as described in item (iii-5) of subparagraph
9003	9003	18 (G) of paragraph (1) of subsection (c) of Section 1-75 of the
9004	9004	19 Illinois Power Agency Act shall be entitled to recover through
9005	9005	20 tariffed charges all costs related to the purchase of high
9006	9006	21 voltage direct current renewable energy credits under the
9007	9007	22 contract. The recoverable costs shall include the costs of
9008	9008	23 procuring the high voltage direct current renewable energy
9009	9009	24 credits, the reasonable costs that the utility incurs as part
9010	9010	25 of the procurement processes, and the cost of implementing and
9011	9011	26 complying with item (iii-5) of subparagraph (G) of paragraph
9012	9012
9013	9013
9014	9014
9015	9015
9016	9016
9017	9017	SB3949 - 250 - LRB103 40603 LNS 73240 b
9018	9018
9019	9019
9020	9020	SB3949- 251 -LRB103 40603 LNS 73240 b SB3949 - 251 - LRB103 40603 LNS 73240 b
9021	9021	SB3949 - 251 - LRB103 40603 LNS 73240 b
9022	9022	1 (1) of subsection (c) of Section 1-75 of the Illinois Power
9023	9023	2 Agency Act. The costs associated with the purchase of high
9024	9024	3 voltage direct current renewable energy credits shall be
9025	9025	4 allocated across all retail customers in proportion to the
9026	9026	5 amount of high voltage renewable energy credits the electric
9027	9027	6 utility procures for the customers through a single, uniform
9028	9028	7 cents per kilowatt-hour charge applicable to the retail
9029	9029	8 customers, and pursuant to the terms of a tariff conforming to
9030	9030	9 the requirements of this subsection and filed with and
9031	9031	10 approved by the Commission within 30 days after entering into
9032	9032	11 a contract for high voltage direct current renewable energy
9033	9033	12 credits. The Commission shall approve, or approve with
9034	9034	13 modifications, the tariff no later than 90 days after the
9035	9035	14 tariff is filed.
9036	9036	15 (j) If a retail customer that obtains electric power and
9037	9037	16 energy from cogeneration or self-generation facilities
9038	9038	17 installed for its own use on or before January 1, 1997,
9039	9039	18 subsequently takes service from an alternative retail electric
9040	9040	19 supplier or an electric utility other than the electric
9041	9041	20 utility in whose service area the customer is located for any
9042	9042	21 portion of the customer's electric power and energy
9043	9043	22 requirements formerly obtained from those facilities
9044	9044	23 (including that amount purchased from the utility in lieu of
9045	9045	24 such generation and not as standby power purchases, under a
9046	9046	25 cogeneration displacement tariff in effect as of the effective
9047	9047	26 date of this amendatory Act of 1997), the transition charges
9048	9048
9049	9049
9050	9050
9051	9051
9052	9052
9053	9053	SB3949 - 251 - LRB103 40603 LNS 73240 b
9054	9054
9055	9055
9056	9056	SB3949- 252 -LRB103 40603 LNS 73240 b SB3949 - 252 - LRB103 40603 LNS 73240 b
9057	9057	SB3949 - 252 - LRB103 40603 LNS 73240 b
9058	9058	1 otherwise applicable pursuant to subsections (f), (g), or (h)
9059	9059	2 of this Section shall not be applicable in any year to that
9060	9060	3 portion of the customer's electric power and energy
9061	9061	4 requirements formerly obtained from those facilities,
9062	9062	5 provided, that for purposes of this subsection (j), such
9063	9063	6 portion shall not exceed the average number of kilowatt-hours
9064	9064	7 per year obtained from the cogeneration or self-generation
9065	9065	8 facilities during the 3 years prior to the date on which the
9066	9066	9 customer became eligible for delivery services, except as
9067	9067	10 provided in subsection (f) of Section 16-110.
9068	9068	11 (k) The electric utility shall be entitled to recover
9069	9069	12 through tariffed charges all of the costs associated with the
9070	9070	13 purchase of zero emission credits from zero emission
9071	9071	14 facilities to meet the requirements of subsection (d-5) of
9072	9072	15 Section 1-75 of the Illinois Power Agency Act and all of the
9073	9073	16 costs associated with the purchase of carbon mitigation
9074	9074	17 credits from carbon-free energy resources to meet the
9075	9075	18 requirements of subsection (d-10) of Section 1-75 of the
9076	9076	19 Illinois Power Agency Act. Such costs shall include the costs
9077	9077	20 of procuring the zero emission credits and carbon mitigation
9078	9078	21 credits from carbon-free energy resources, as well as the
9079	9079	22 reasonable costs that the utility incurs as part of the
9080	9080	23 procurement processes and to implement and comply with plans
9081	9081	24 and processes approved by the Commission under subsections
9082	9082	25 (d-5) and (d-10). The costs shall be allocated across all
9083	9083	26 retail customers through a single, uniform cents per
9084	9084
9085	9085
9086	9086
9087	9087
9088	9088
9089	9089	SB3949 - 252 - LRB103 40603 LNS 73240 b
9090	9090
9091	9091
9092	9092	SB3949- 253 -LRB103 40603 LNS 73240 b SB3949 - 253 - LRB103 40603 LNS 73240 b
9093	9093	SB3949 - 253 - LRB103 40603 LNS 73240 b
9094	9094	1 kilowatt-hour charge applicable to all retail customers, which
9095	9095	2 shall appear as a separate line item on each customer's bill.
9096	9096	3 Beginning June 1, 2017, the electric utility shall be entitled
9097	9097	4 to recover through tariffed charges all of the costs
9098	9098	5 associated with the purchase of renewable energy resources to
9099	9099	6 meet the renewable energy resource standards of subsection (c)
9100	9100	7 of Section 1-75 of the Illinois Power Agency Act, under
9101	9101	8 procurement plans as approved in accordance with that Section
9102	9102	9 and Section 16-111.5 of this Act. Such costs shall include the
9103	9103	10 costs of procuring the renewable energy resources, as well as
9104	9104	11 the reasonable costs that the utility incurs as part of the
9105	9105	12 procurement processes and to implement and comply with plans
9106	9106	13 and processes approved by the Commission under such Sections.
9107	9107	14 The costs associated with the purchase of renewable energy
9108	9108	15 resources shall be allocated across all retail customers in
9109	9109	16 proportion to the amount of renewable energy resources the
9110	9110	17 utility procures for such customers through a single, uniform
9111	9111	18 cents per kilowatt-hour charge applicable to such retail
9112	9112	19 customers, which shall appear as a separate line item on each
9113	9113	20 such customer's bill. The credits, costs, and penalties
9114	9114	21 associated with the self-direct renewable portfolio standard
9115	9115	22 compliance program described in subparagraph (R) of paragraph
9116	9116	23 (1) of subsection (c) of Section 1-75 of the Illinois Power
9117	9117	24 Agency Act shall be allocated to approved eligible self-direct
9118	9118	25 customers by the utility in a cents per kilowatt-hour credit,
9119	9119	26 cost, or penalty, which shall appear as a separate line item on
9120	9120
9121	9121
9122	9122
9123	9123
9124	9124
9125	9125	SB3949 - 253 - LRB103 40603 LNS 73240 b
9126	9126
9127	9127
9128	9128	SB3949- 254 -LRB103 40603 LNS 73240 b SB3949 - 254 - LRB103 40603 LNS 73240 b
9129	9129	SB3949 - 254 - LRB103 40603 LNS 73240 b
9130	9130	1 each such customer's bill.
9131	9131	2 Notwithstanding whether the Commission has approved the
9132	9132	3 initial long-term renewable resources procurement plan as of
9133	9133	4 June 1, 2017, an electric utility shall place new tariffed
9134	9134	5 charges into effect beginning with the June 2017 monthly
9135	9135	6 billing period, to the extent practicable, to begin recovering
9136	9136	7 the costs of procuring renewable energy resources, as those
9137	9137	8 charges are calculated under the limitations described in
9138	9138	9 subparagraph (E) of paragraph (1) of subsection (c) of Section
9139	9139	10 1-75 of the Illinois Power Agency Act. Notwithstanding the
9140	9140	11 date on which the utility places such new tariffed charges
9141	9141	12 into effect, the utility shall be permitted to collect the
9142	9142	13 charges under such tariff as if the tariff had been in effect
9143	9143	14 beginning with the first day of the June 2017 monthly billing
9144	9144	15 period. For the delivery years commencing June 1, 2017, June
9145	9145	16 1, 2018, June 1, 2019, and each delivery year thereafter, the
9146	9146	17 electric utility shall deposit into a separate interest
9147	9147	18 bearing account of a financial institution the monies
9148	9148	19 collected under the tariffed charges. Money collected from
9149	9149	20 customers for the procurement of renewable energy resources in
9150	9150	21 a given delivery year may be spent by the utility for the
9151	9151	22 procurement of renewable resources over any of the following 5
9152	9152	23 delivery years, after which unspent money shall be credited
9153	9153	24 back to retail customers. The electric utility shall spend all
9154	9154	25 money collected in earlier delivery years that has not yet
9155	9155	26 been returned to customers, first, before spending money
9156	9156
9157	9157
9158	9158
9159	9159
9160	9160
9161	9161	SB3949 - 254 - LRB103 40603 LNS 73240 b
9162	9162
9163	9163
9164	9164	SB3949- 255 -LRB103 40603 LNS 73240 b SB3949 - 255 - LRB103 40603 LNS 73240 b
9165	9165	SB3949 - 255 - LRB103 40603 LNS 73240 b
9166	9166	1 collected in later delivery years. Any interest earned shall
9167	9167	2 be credited back to retail customers under the reconciliation
9168	9168	3 proceeding provided for in this subsection (k), provided that
9169	9169	4 the electric utility shall first be reimbursed from the
9170	9170	5 interest for the administrative costs that it incurs to
9171	9171	6 administer and manage the account. Any taxes due on the funds
9172	9172	7 in the account, or interest earned on it, will be paid from the
9173	9173	8 account or, if insufficient monies are available in the
9174	9174	9 account, from the monies collected under the tariffed charges
9175	9175	10 to recover the costs of procuring renewable energy resources.
9176	9176	11 Monies deposited in the account shall be subject to the
9177	9177	12 review, reconciliation, and true-up process described in this
9178	9178	13 subsection (k) that is applicable to the funds collected and
9179	9179	14 costs incurred for the procurement of renewable energy
9180	9180	15 resources.
9181	9181	16 The electric utility shall be entitled to recover all of
9182	9182	17 the costs identified in this subsection (k) through automatic
9183	9183	18 adjustment clause tariffs applicable to all of the utility's
9184	9184	19 retail customers that allow the electric utility to adjust its
9185	9185	20 tariffed charges consistent with this subsection (k). The
9186	9186	21 determination as to whether any excess funds were collected
9187	9187	22 during a given delivery year for the purchase of renewable
9188	9188	23 energy resources, and the crediting of any excess funds back
9189	9189	24 to retail customers, shall not be made until after the close of
9190	9190	25 the delivery year, which will ensure that the maximum amount
9191	9191	26 of funds is available to implement the approved long-term
9192	9192
9193	9193
9194	9194
9195	9195
9196	9196
9197	9197	SB3949 - 255 - LRB103 40603 LNS 73240 b
9198	9198
9199	9199
9200	9200	SB3949- 256 -LRB103 40603 LNS 73240 b SB3949 - 256 - LRB103 40603 LNS 73240 b
9201	9201	SB3949 - 256 - LRB103 40603 LNS 73240 b
9202	9202	1 renewable resources procurement plan during a given delivery
9203	9203	2 year. The amount of excess funds eligible to be credited back
9204	9204	3 to retail customers shall be reduced by an amount equal to the
9205	9205	4 payment obligations required by any contracts entered into by
9206	9206	5 an electric utility under contracts described in subsection
9207	9207	6 (b) of Section 1-56 and subsection (c) of Section 1-75 of the
9208	9208	7 Illinois Power Agency Act, even if such payments have not yet
9209	9209	8 been made and regardless of the delivery year in which those
9210	9210	9 payment obligations were incurred. Notwithstanding anything to
9211	9211	10 the contrary, including in tariffs authorized by this
9212	9212	11 subsection (k) in effect before the effective date of this
9213	9213	12 amendatory Act of the 102nd General Assembly, all unspent
9214	9214	13 funds as of May 31, 2021, excluding any funds credited to
9215	9215	14 customers during any utility billing cycle that commences
9216	9216	15 prior to the effective date of this amendatory Act of the 102nd
9217	9217	16 General Assembly, shall remain in the utility account and
9218	9218	17 shall on a first in, first out basis be used toward utility
9219	9219	18 payment obligations under contracts described in subsection
9220	9220	19 (b) of Section 1-56 and subsection (c) of Section 1-75 of the
9221	9221	20 Illinois Power Agency Act. The electric utility's collections
9222	9222	21 under such automatic adjustment clause tariffs to recover the
9223	9223	22 costs of renewable energy resources, zero emission credits
9224	9224	23 from zero emission facilities, and carbon mitigation credits
9225	9225	24 from carbon-free energy resources shall be subject to separate
9226	9226	25 annual review, reconciliation, and true-up against actual
9227	9227	26 costs by the Commission under a procedure that shall be
9228	9228
9229	9229
9230	9230
9231	9231
9232	9232
9233	9233	SB3949 - 256 - LRB103 40603 LNS 73240 b
9234	9234
9235	9235
9236	9236	SB3949- 257 -LRB103 40603 LNS 73240 b SB3949 - 257 - LRB103 40603 LNS 73240 b
9237	9237	SB3949 - 257 - LRB103 40603 LNS 73240 b
9238	9238	1 specified in the electric utility's automatic adjustment
9239	9239	2 clause tariffs and that shall be approved by the Commission in
9240	9240	3 connection with its approval of such tariffs. The procedure
9241	9241	4 shall provide that any difference between the electric
9242	9242	5 utility's collections for zero emission credits and carbon
9243	9243	6 mitigation credits under the automatic adjustment charges for
9244	9244	7 an annual period and the electric utility's actual costs of
9245	9245	8 zero emission credits from zero emission facilities and carbon
9246	9246	9 mitigation credits from carbon-free energy resources for that
9247	9247	10 same annual period shall be refunded to or collected from, as
9248	9248	11 applicable, the electric utility's retail customers in
9249	9249	12 subsequent periods.
9250	9250	13 Nothing in this subsection (k) is intended to affect,
9251	9251	14 limit, or change the right of the electric utility to recover
9252	9252	15 the costs associated with the procurement of renewable energy
9253	9253	16 resources for periods commencing before, on, or after June 1,
9254	9254	17 2017, as otherwise provided in the Illinois Power Agency Act.
9255	9255	18 The funding available under this subsection (k), if any,
9256	9256	19 for the programs described under subsection (b) of Section
9257	9257	20 1-56 of the Illinois Power Agency Act shall not reduce the
9258	9258	21 amount of funding for the programs described in subparagraph
9259	9259	22 (O) of paragraph (1) of subsection (c) of Section 1-75 of the
9260	9260	23 Illinois Power Agency Act. If funding is available under this
9261	9261	24 subsection (k) for programs described under subsection (b) of
9262	9262	25 Section 1-56 of the Illinois Power Agency Act, then the
9263	9263	26 long-term renewable resources plan shall provide for the
9264	9264
9265	9265
9266	9266
9267	9267
9268	9268
9269	9269	SB3949 - 257 - LRB103 40603 LNS 73240 b
9270	9270
9271	9271
9272	9272	SB3949- 258 -LRB103 40603 LNS 73240 b SB3949 - 258 - LRB103 40603 LNS 73240 b
9273	9273	SB3949 - 258 - LRB103 40603 LNS 73240 b
9274	9274	1 Agency to procure contracts in an amount that does not exceed
9275	9275	2 the funding, and the contracts approved by the Commission
9276	9276	3 shall be executed by the applicable utility or utilities.
9277	9277	4 (l) A utility that has terminated any contract executed
9278	9278	5 under subsection (d-5) or (d-10) of Section 1-75 of the
9279	9279	6 Illinois Power Agency Act shall be entitled to recover any
9280	9280	7 remaining balance associated with the purchase of zero
9281	9281	8 emission credits prior to such termination, and such utility
9282	9282	9 shall also apply a credit to its retail customer bills in the
9283	9283	10 event of any over-collection.
9284	9284	11 (m)(1) An electric utility that recovers its costs of
9285	9285	12 procuring zero emission credits from zero emission facilities
9286	9286	13 through a cents-per-kilowatthour charge under subsection (k)
9287	9287	14 of this Section shall be subject to the requirements of this
9288	9288	15 subsection (m). Notwithstanding anything to the contrary, such
9289	9289	16 electric utility shall, beginning on April 30, 2018, and each
9290	9290	17 April 30 thereafter until April 30, 2026, calculate whether
9291	9291	18 any reduction must be applied to such cents-per-kilowatthour
9292	9292	19 charge that is paid by retail customers of the electric
9293	9293	20 utility that have opted out of subsections (a) through (j) of
9294	9294	21 Section 8-103B of this Act under subsection (l) of Section
9295	9295	22 8-103B. Such charge shall be reduced for such customers for
9296	9296	23 the next delivery year commencing on June 1 based on the amount
9297	9297	24 necessary, if any, to limit the annual estimated average net
9298	9298	25 increase for the prior calendar year due to the future energy
9299	9299	26 investment costs to no more than 1.3% of 5.98 cents per
9300	9300
9301	9301
9302	9302
9303	9303
9304	9304
9305	9305	SB3949 - 258 - LRB103 40603 LNS 73240 b
9306	9306
9307	9307
9308	9308	SB3949- 259 -LRB103 40603 LNS 73240 b SB3949 - 259 - LRB103 40603 LNS 73240 b
9309	9309	SB3949 - 259 - LRB103 40603 LNS 73240 b
9310	9310	1 kilowatt-hour, which is the average amount paid per
9311	9311	2 kilowatthour for electric service during the year ending
9312	9312	3 December 31, 2015 by Illinois industrial retail customers, as
9313	9313	4 reported to the Edison Electric Institute.
9314	9314	5 The calculations required by this subsection (m) shall be
9315	9315	6 made only once for each year, and no subsequent rate impact
9316	9316	7 determinations shall be made.
9317	9317	8 (2) For purposes of this Section, "future energy
9318	9318	9 investment costs" shall be calculated by subtracting the
9319	9319	10 cents-per-kilowatthour charge identified in subparagraph (A)
9320	9320	11 of this paragraph (2) from the sum of the
9321	9321	12 cents-per-kilowatthour charges identified in subparagraph (B)
9322	9322	13 of this paragraph (2):
9323	9323	14 (A) The cents-per-kilowatthour charge identified in
9324	9324	15 the electric utility's tariff placed into effect under
9325	9325	16 Section 8-103 of the Public Utilities Act that, on
9326	9326	17 December 1, 2016, was applicable to those retail customers
9327	9327	18 that have opted out of subsections (a) through (j) of
9328	9328	19 Section 8-103B of this Act under subsection (l) of Section
9329	9329	20 8-103B.
9330	9330	21 (B) The sum of the following cents-per-kilowatthour
9331	9331	22 charges applicable to those retail customers that have
9332	9332	23 opted out of subsections (a) through (j) of Section 8-103B
9333	9333	24 of this Act under subsection (l) of Section 8-103B,
9334	9334	25 provided that if one or more of the following charges has
9335	9335	26 been in effect and applied to such customers for more than
9336	9336
9337	9337
9338	9338
9339	9339
9340	9340
9341	9341	SB3949 - 259 - LRB103 40603 LNS 73240 b
9342	9342
9343	9343
9344	9344	SB3949- 260 -LRB103 40603 LNS 73240 b SB3949 - 260 - LRB103 40603 LNS 73240 b
9345	9345	SB3949 - 260 - LRB103 40603 LNS 73240 b
9346	9346	1 one calendar year, then each charge shall be equal to the
9347	9347	2 average of the charges applied over a period that
9348	9348	3 commences with the calendar year ending December 31, 2017
9349	9349	4 and ends with the most recently completed calendar year
9350	9350	5 prior to the calculation required by this subsection (m):
9351	9351	6 (i) the cents-per-kilowatthour charge to recover
9352	9352	7 the costs incurred by the utility under subsection
9353	9353	8 (d-5) of Section 1-75 of the Illinois Power Agency
9354	9354	9 Act, adjusted for any reductions required under this
9355	9355	10 subsection (m); and
9356	9356	11 (ii) the cents-per-kilowatthour charge to recover
9357	9357	12 the costs incurred by the utility under Section
9358	9358	13 16-107.6 of the Public Utilities Act.
9359	9359	14 If no charge was applied for a given calendar year
9360	9360	15 under item (i) or (ii) of this subparagraph (B), then the
9361	9361	16 value of the charge for that year shall be zero.
9362	9362	17 (3) If a reduction is required by the calculation
9363	9363	18 performed under this subsection (m), then the amount of the
9364	9364	19 reduction shall be multiplied by the number of years reflected
9365	9365	20 in the averages calculated under subparagraph (B) of paragraph
9366	9366	21 (2) of this subsection (m). Such reduction shall be applied to
9367	9367	22 the cents-per-kilowatthour charge that is applicable to those
9368	9368	23 retail customers that have opted out of subsections (a)
9369	9369	24 through (j) of Section 8-103B of this Act under subsection (l)
9370	9370	25 of Section 8-103B beginning with the next delivery year
9371	9371	26 commencing after the date of the calculation required by this
9372	9372
9373	9373
9374	9374
9375	9375
9376	9376
9377	9377	SB3949 - 260 - LRB103 40603 LNS 73240 b
9378	9378
9379	9379
9380	9380	SB3949- 261 -LRB103 40603 LNS 73240 b SB3949 - 261 - LRB103 40603 LNS 73240 b
9381	9381	SB3949 - 261 - LRB103 40603 LNS 73240 b
9382	9382	1 subsection (m).
9383	9383	2 (4) The electric utility shall file a notice with the
9384	9384	3 Commission on May 1 of 2018 and each May 1 thereafter until May
9385	9385	4 1, 2026 containing the reduction, if any, which must be
9386	9386	5 applied for the delivery year which begins in the year of the
9387	9387	6 filing. The notice shall contain the calculations made
9388	9388	7 pursuant to this Section. By October 1 of each year beginning
9389	9389	8 in 2018, each electric utility shall notify the Commission if
9390	9390	9 it appears, based on an estimate of the calculation required
9391	9391	10 in this subsection (m), that a reduction will be required in
9392	9392	11 the next year.
9393	9393	12 (Source: P.A. 102-662, eff. 9-15-21.)
9394	9394	13 (220 ILCS 5/16-111.5)
9395	9395	14 Sec. 16-111.5. Provisions relating to procurement.
9396	9396	15 (a) An electric utility that on December 31, 2005 served
9397	9397	16 at least 100,000 customers in Illinois shall procure power and
9398	9398	17 energy for its eligible retail customers in accordance with
9399	9399	18 the applicable provisions set forth in Section 1-75 of the
9400	9400	19 Illinois Power Agency Act and this Section. Beginning with the
9401	9401	20 delivery year commencing on June 1, 2017, such electric
9402	9402	21 utility shall also procure zero emission credits from zero
9403	9403	22 emission facilities in accordance with the applicable
9404	9404	23 provisions set forth in Section 1-75 of the Illinois Power
9405	9405	24 Agency Act, and, for years beginning on or after June 1, 2017,
9406	9406	25 the utility shall procure renewable energy resources in
9407	9407
9408	9408
9409	9409
9410	9410
9411	9411
9412	9412	SB3949 - 261 - LRB103 40603 LNS 73240 b
9413	9413
9414	9414
9415	9415	SB3949- 262 -LRB103 40603 LNS 73240 b SB3949 - 262 - LRB103 40603 LNS 73240 b
9416	9416	SB3949 - 262 - LRB103 40603 LNS 73240 b
9417	9417	1 accordance with the applicable provisions set forth in Section
9418	9418	2 1-75 of the Illinois Power Agency Act and this Section.
9419	9419	3 Beginning with the delivery year commencing on June 1, 2022,
9420	9420	4 an electric utility serving over 3,000,000 customers shall
9421	9421	5 also procure carbon mitigation credits from carbon-free energy
9422	9422	6 resources in accordance with the applicable provisions set
9423	9423	7 forth in Section 1-75 of the Illinois Power Agency Act and this
9424	9424	8 Section. A small multi-jurisdictional electric utility that on
9425	9425	9 December 31, 2005 served less than 100,000 customers in
9426	9426	10 Illinois may elect to procure power and energy for all or a
9427	9427	11 portion of its eligible Illinois retail customers in
9428	9428	12 accordance with the applicable provisions set forth in this
9429	9429	13 Section and Section 1-75 of the Illinois Power Agency Act.
9430	9430	14 This Section shall not apply to a small multi-jurisdictional
9431	9431	15 utility until such time as a small multi-jurisdictional
9432	9432	16 utility requests the Illinois Power Agency to prepare a
9433	9433	17 procurement plan for its eligible retail customers. "Eligible
9434	9434	18 retail customers" for the purposes of this Section means those
9435	9435	19 retail customers that purchase power and energy from the
9436	9436	20 electric utility under fixed-price bundled service tariffs,
9437	9437	21 other than those retail customers whose service is declared or
9438	9438	22 deemed competitive under Section 16-113 and those other
9439	9439	23 customer groups specified in this Section, including
9440	9440	24 self-generating customers, customers electing hourly pricing,
9441	9441	25 or those customers who are otherwise ineligible for
9442	9442	26 fixed-price bundled tariff service. For those customers that
9443	9443
9444	9444
9445	9445
9446	9446
9447	9447
9448	9448	SB3949 - 262 - LRB103 40603 LNS 73240 b
9449	9449
9450	9450
9451	9451	SB3949- 263 -LRB103 40603 LNS 73240 b SB3949 - 263 - LRB103 40603 LNS 73240 b
9452	9452	SB3949 - 263 - LRB103 40603 LNS 73240 b
9453	9453	1 are excluded from the procurement plan's electric supply
9454	9454	2 service requirements, and the utility shall procure any supply
9455	9455	3 requirements, including capacity, ancillary services, and
9456	9456	4 hourly priced energy, in the applicable markets as needed to
9457	9457	5 serve those customers, provided that the utility may include
9458	9458	6 in its procurement plan load requirements for the load that is
9459	9459	7 associated with those retail customers whose service has been
9460	9460	8 declared or deemed competitive pursuant to Section 16-113 of
9461	9461	9 this Act to the extent that those customers are purchasing
9462	9462	10 power and energy during one of the transition periods
9463	9463	11 identified in subsection (b) of Section 16-113 of this Act.
9464	9464	12 (b) A procurement plan shall be prepared for each electric
9465	9465	13 utility consistent with the applicable requirements of the
9466	9466	14 Illinois Power Agency Act and this Section. For purposes of
9467	9467	15 this Section, Illinois electric utilities that are affiliated
9468	9468	16 by virtue of a common parent company are considered to be a
9469	9469	17 single electric utility. Small multi-jurisdictional utilities
9470	9470	18 may request a procurement plan for a portion of or all of its
9471	9471	19 Illinois load. Each procurement plan shall analyze the
9472	9472	20 projected balance of supply and demand for those retail
9473	9473	21 customers to be included in the plan's electric supply service
9474	9474	22 requirements over a 5-year period, with the first planning
9475	9475	23 year beginning on June 1 of the year following the year in
9476	9476	24 which the plan is filed. The plan shall specifically identify
9477	9477	25 the wholesale products to be procured following plan approval,
9478	9478	26 and shall follow all the requirements set forth in the Public
9479	9479
9480	9480
9481	9481
9482	9482
9483	9483
9484	9484	SB3949 - 263 - LRB103 40603 LNS 73240 b
9485	9485
9486	9486
9487	9487	SB3949- 264 -LRB103 40603 LNS 73240 b SB3949 - 264 - LRB103 40603 LNS 73240 b
9488	9488	SB3949 - 264 - LRB103 40603 LNS 73240 b
9489	9489	1 Utilities Act and all applicable State and federal laws,
9490	9490	2 statutes, rules, or regulations, as well as Commission orders.
9491	9491	3 Nothing in this Section precludes consideration of contracts
9492	9492	4 longer than 5 years and related forecast data. Unless
9493	9493	5 specified otherwise in this Section, in the procurement plan
9494	9494	6 or in the implementing tariff, any procurement occurring in
9495	9495	7 accordance with this plan shall be competitively bid through a
9496	9496	8 request for proposals process. Approval and implementation of
9497	9497	9 the procurement plan shall be subject to review and approval
9498	9498	10 by the Commission according to the provisions set forth in
9499	9499	11 this Section. A procurement plan shall include each of the
9500	9500	12 following components:
9501	9501	13 (1) Hourly load analysis. This analysis shall include:
9502	9502	14 (i) multi-year historical analysis of hourly
9503	9503	15 loads;
9504	9504	16 (ii) switching trends and competitive retail
9505	9505	17 market analysis;
9506	9506	18 (iii) known or projected changes to future loads;
9507	9507	19 and
9508	9508	20 (iv) growth forecasts by customer class.
9509	9509	21 (2) Analysis of the impact of any demand side and
9510	9510	22 renewable energy initiatives. This analysis shall include:
9511	9511	23 (i) the impact of demand response programs and
9512	9512	24 energy efficiency programs, both current and
9513	9513	25 projected; for small multi-jurisdictional utilities,
9514	9514	26 the impact of demand response and energy efficiency
9515	9515
9516	9516
9517	9517
9518	9518
9519	9519
9520	9520	SB3949 - 264 - LRB103 40603 LNS 73240 b
9521	9521
9522	9522
9523	9523	SB3949- 265 -LRB103 40603 LNS 73240 b SB3949 - 265 - LRB103 40603 LNS 73240 b
9524	9524	SB3949 - 265 - LRB103 40603 LNS 73240 b
9525	9525	1 programs approved pursuant to Section 8-408 of this
9526	9526	2 Act, both current and projected; and
9527	9527	3 (ii) supply side needs that are projected to be
9528	9528	4 offset by purchases of renewable energy resources, if
9529	9529	5 any.
9530	9530	6 (3) A plan for meeting the expected load requirements
9531	9531	7 that will not be met through preexisting contracts. This
9532	9532	8 plan shall include:
9533	9533	9 (i) definitions of the different Illinois retail
9534	9534	10 customer classes for which supply is being purchased;
9535	9535	11 (ii) the proposed mix of demand-response products
9536	9536	12 for which contracts will be executed during the next
9537	9537	13 year. For small multi-jurisdictional electric
9538	9538	14 utilities that on December 31, 2005 served fewer than
9539	9539	15 100,000 customers in Illinois, these shall be defined
9540	9540	16 as demand-response products offered in an energy
9541	9541	17 efficiency plan approved pursuant to Section 8-408 of
9542	9542	18 this Act. The cost-effective demand-response measures
9543	9543	19 shall be procured whenever the cost is lower than
9544	9544	20 procuring comparable capacity products, provided that
9545	9545	21 such products shall:
9546	9546	22 (A) be procured by a demand-response provider
9547	9547	23 from those retail customers included in the plan's
9548	9548	24 electric supply service requirements;
9549	9549	25 (B) at least satisfy the demand-response
9550	9550	26 requirements of the regional transmission
9551	9551
9552	9552
9553	9553
9554	9554
9555	9555
9556	9556	SB3949 - 265 - LRB103 40603 LNS 73240 b
9557	9557
9558	9558
9559	9559	SB3949- 266 -LRB103 40603 LNS 73240 b SB3949 - 266 - LRB103 40603 LNS 73240 b
9560	9560	SB3949 - 266 - LRB103 40603 LNS 73240 b
9561	9561	1 organization market in which the utility's service
9562	9562	2 territory is located, including, but not limited
9563	9563	3 to, any applicable capacity or dispatch
9564	9564	4 requirements;
9565	9565	5 (C) provide for customers' participation in
9566	9566	6 the stream of benefits produced by the
9567	9567	7 demand-response products;
9568	9568	8 (D) provide for reimbursement by the
9569	9569	9 demand-response provider of the utility for any
9570	9570	10 costs incurred as a result of the failure of the
9571	9571	11 supplier of such products to perform its
9572	9572	12 obligations thereunder; and
9573	9573	13 (E) meet the same credit requirements as apply
9574	9574	14 to suppliers of capacity, in the applicable
9575	9575	15 regional transmission organization market;
9576	9576	16 (iii) monthly forecasted system supply
9577	9577	17 requirements, including expected minimum, maximum, and
9578	9578	18 average values for the planning period;
9579	9579	19 (iv) the proposed mix and selection of standard
9580	9580	20 wholesale products for which contracts will be
9581	9581	21 executed during the next year, separately or in
9582	9582	22 combination, to meet that portion of its load
9583	9583	23 requirements not met through pre-existing contracts,
9584	9584	24 including but not limited to monthly 5 x 16 peak period
9585	9585	25 block energy, monthly off-peak wrap energy, monthly 7
9586	9586	26 x 24 energy, annual 5 x 16 energy, other standardized
9587	9587
9588	9588
9589	9589
9590	9590
9591	9591
9592	9592	SB3949 - 266 - LRB103 40603 LNS 73240 b
9593	9593
9594	9594
9595	9595	SB3949- 267 -LRB103 40603 LNS 73240 b SB3949 - 267 - LRB103 40603 LNS 73240 b
9596	9596	SB3949 - 267 - LRB103 40603 LNS 73240 b
9597	9597	1 energy or capacity products designed to provide
9598	9598	2 eligible retail customer benefits from commercially
9599	9599	3 deployed advanced technologies including but not
9600	9600	4 limited to high voltage direct current converter
9601	9601	5 stations, as such term is defined in Section 1-10 of
9602	9602	6 the Illinois Power Agency Act, whether or not such
9603	9603	7 product is currently available in wholesale markets
9604	9604	8 and including bilateral purchases of capacity from a
9605	9605	9 winning bidder under a procurement authorized by item
9606	9606	10 (iii-5) of subparagraph (G) of paragraph (1) of
9607	9607	11 subsection (c) of Section 1-75 of the Illinois Power
9608	9608	12 Agency Act on terms and conditions determined by the
9609	9609	13 Agency, annual off-peak wrap energy, annual 7 x 24
9610	9610	14 energy, monthly capacity, annual capacity, peak load
9611	9611	15 capacity obligations, capacity purchase plan, and
9612	9612	16 ancillary services;
9613	9613	17 (v) proposed term structures for each wholesale
9614	9614	18 product type included in the proposed procurement plan
9615	9615	19 portfolio of products; and
9616	9616	20 (vi) an assessment of the price risk, load
9617	9617	21 uncertainty, and other factors that are associated
9618	9618	22 with the proposed procurement plan; this assessment,
9619	9619	23 to the extent possible, shall include an analysis of
9620	9620	24 the following factors: contract terms, time frames for
9621	9621	25 securing products or services, fuel costs, weather
9622	9622	26 patterns, transmission costs, market conditions, and
9623	9623
9624	9624
9625	9625
9626	9626
9627	9627
9628	9628	SB3949 - 267 - LRB103 40603 LNS 73240 b
9629	9629
9630	9630
9631	9631	SB3949- 268 -LRB103 40603 LNS 73240 b SB3949 - 268 - LRB103 40603 LNS 73240 b
9632	9632	SB3949 - 268 - LRB103 40603 LNS 73240 b
9633	9633	1 the governmental regulatory environment; the proposed
9634	9634	2 procurement plan shall also identify alternatives for
9635	9635	3 those portfolio measures that are identified as having
9636	9636	4 significant price risk and mitigation in the form of
9637	9637	5 additional retail customer and ratepayer price,
9638	9638	6 reliability, and environmental benefits from
9639	9639	7 standardized energy products delivered from
9640	9640	8 commercially deployed advanced technologies,
9641	9641	9 including, but not limited to, high voltage direct
9642	9642	10 current converter stations, as such term is defined in
9643	9643	11 Section 1-10 of the Illinois Power Agency Act, whether
9644	9644	12 or not such product is currently available in
9645	9645	13 wholesale markets.
9646	9646	14 (4) Proposed procedures for balancing loads. The
9647	9647	15 procurement plan shall include, for load requirements
9648	9648	16 included in the procurement plan, the process for (i)
9649	9649	17 hourly balancing of supply and demand and (ii) the
9650	9650	18 criteria for portfolio re-balancing in the event of
9651	9651	19 significant shifts in load.
9652	9652	20 (5) Long-Term Renewable Resources Procurement Plan.
9653	9653	21 The Agency shall prepare a long-term renewable resources
9654	9654	22 procurement plan for the procurement of renewable energy
9655	9655	23 credits under Sections 1-56 and 1-75 of the Illinois Power
9656	9656	24 Agency Act for delivery beginning in the 2017 delivery
9657	9657	25 year.
9658	9658	26 (i) The initial long-term renewable resources
9659	9659
9660	9660
9661	9661
9662	9662
9663	9663
9664	9664	SB3949 - 268 - LRB103 40603 LNS 73240 b
9665	9665
9666	9666
9667	9667	SB3949- 269 -LRB103 40603 LNS 73240 b SB3949 - 269 - LRB103 40603 LNS 73240 b
9668	9668	SB3949 - 269 - LRB103 40603 LNS 73240 b
9669	9669	1 procurement plan and all subsequent revisions shall be
9670	9670	2 subject to review and approval by the Commission. For
9671	9671	3 the purposes of this Section, "delivery year" has the
9672	9672	4 same meaning as in Section 1-10 of the Illinois Power
9673	9673	5 Agency Act. For purposes of this Section, "Agency"
9674	9674	6 shall mean the Illinois Power Agency.
9675	9675	7 (ii) The long-term renewable resources planning
9676	9676	8 process shall be conducted as follows:
9677	9677	9 (A) Electric utilities shall provide a range
9678	9678	10 of load forecasts to the Illinois Power Agency
9679	9679	11 within 45 days of the Agency's request for
9680	9680	12 forecasts, which request shall specify the length
9681	9681	13 and conditions for the forecasts including, but
9682	9682	14 not limited to, the quantity of distributed
9683	9683	15 generation expected to be interconnected for each
9684	9684	16 year.
9685	9685	17 (B) The Agency shall publish for comment the
9686	9686	18 initial long-term renewable resources procurement
9687	9687	19 plan no later than 120 days after the effective
9688	9688	20 date of this amendatory Act of the 99th General
9689	9689	21 Assembly and shall review, and may revise, the
9690	9690	22 plan at least every 2 years thereafter. To the
9691	9691	23 extent practicable, the Agency shall review and
9692	9692	24 propose any revisions to the long-term renewable
9693	9693	25 energy resources procurement plan in conjunction
9694	9694	26 with the Agency's other planning and approval
9695	9695
9696	9696
9697	9697
9698	9698
9699	9699
9700	9700	SB3949 - 269 - LRB103 40603 LNS 73240 b
9701	9701
9702	9702
9703	9703	SB3949- 270 -LRB103 40603 LNS 73240 b SB3949 - 270 - LRB103 40603 LNS 73240 b
9704	9704	SB3949 - 270 - LRB103 40603 LNS 73240 b
9705	9705	1 processes conducted under this Section. The
9706	9706	2 initial long-term renewable resources procurement
9707	9707	3 plan shall:
9708	9708	4 (aa) Identify the procurement programs and
9709	9709	5 competitive procurement events consistent with
9710	9710	6 the applicable requirements of the Illinois
9711	9711	7 Power Agency Act and shall be designed to
9712	9712	8 achieve the goals set forth in subsection (c)
9713	9713	9 of Section 1-75 of that Act.
9714	9714	10 (bb) Include a schedule for procurements
9715	9715	11 for renewable energy credits from
9716	9716	12 utility-scale wind projects, utility-scale
9717	9717	13 solar projects, and brownfield site
9718	9718	14 photovoltaic projects consistent with
9719	9719	15 subparagraph (G) of paragraph (1) of
9720	9720	16 subsection (c) of Section 1-75 of the Illinois
9721	9721	17 Power Agency Act.
9722	9722	18 (cc) Identify the process whereby the
9723	9723	19 Agency will submit to the Commission for
9724	9724	20 review and approval the proposed contracts to
9725	9725	21 implement the programs required by such plan.
9726	9726	22 Copies of the initial long-term renewable
9727	9727	23 resources procurement plan and all subsequent
9728	9728	24 revisions shall be posted and made publicly
9729	9729	25 available on the Agency's and Commission's
9730	9730	26 websites, and copies shall also be provided to
9731	9731
9732	9732
9733	9733
9734	9734
9735	9735
9736	9736	SB3949 - 270 - LRB103 40603 LNS 73240 b
9737	9737
9738	9738
9739	9739	SB3949- 271 -LRB103 40603 LNS 73240 b SB3949 - 271 - LRB103 40603 LNS 73240 b
9740	9740	SB3949 - 271 - LRB103 40603 LNS 73240 b
9741	9741	1 each affected electric utility. An affected
9742	9742	2 utility and other interested parties shall have 45
9743	9743	3 days following the date of posting to provide
9744	9744	4 comment to the Agency on the initial long-term
9745	9745	5 renewable resources procurement plan and all
9746	9746	6 subsequent revisions. All comments submitted to
9747	9747	7 the Agency shall be specific, supported by data or
9748	9748	8 other detailed analyses, and, if objecting to all
9749	9749	9 or a portion of the procurement plan, accompanied
9750	9750	10 by specific alternative wording or proposals. All
9751	9751	11 comments shall be posted on the Agency's and
9752	9752	12 Commission's websites. During this 45-day comment
9753	9753	13 period, the Agency shall hold at least one public
9754	9754	14 hearing within each utility's service area that is
9755	9755	15 subject to the requirements of this paragraph (5)
9756	9756	16 for the purpose of receiving public comment.
9757	9757	17 Within 21 days following the end of the 45-day
9758	9758	18 review period, the Agency may revise the long-term
9759	9759	19 renewable resources procurement plan based on the
9760	9760	20 comments received and shall file the plan with the
9761	9761	21 Commission for review and approval.
9762	9762	22 (C) Within 14 days after the filing of the
9763	9763	23 initial long-term renewable resources procurement
9764	9764	24 plan or any subsequent revisions, any person
9765	9765	25 objecting to the plan may file an objection with
9766	9766	26 the Commission. Within 21 days after the filing of
9767	9767
9768	9768
9769	9769
9770	9770
9771	9771
9772	9772	SB3949 - 271 - LRB103 40603 LNS 73240 b
9773	9773
9774	9774
9775	9775	SB3949- 272 -LRB103 40603 LNS 73240 b SB3949 - 272 - LRB103 40603 LNS 73240 b
9776	9776	SB3949 - 272 - LRB103 40603 LNS 73240 b
9777	9777	1 the plan, the Commission shall determine whether a
9778	9778	2 hearing is necessary. The Commission shall enter
9779	9779	3 its order confirming or modifying the initial
9780	9780	4 long-term renewable resources procurement plan or
9781	9781	5 any subsequent revisions within 120 days after the
9782	9782	6 filing of the plan by the Illinois Power Agency.
9783	9783	7 (D) The Commission shall approve the initial
9784	9784	8 long-term renewable resources procurement plan and
9785	9785	9 any subsequent revisions, including expressly the
9786	9786	10 forecast used in the plan and taking into account
9787	9787	11 that funding will be limited to the amount of
9788	9788	12 revenues actually collected by the utilities, if
9789	9789	13 the Commission determines that the plan will
9790	9790	14 reasonably and prudently accomplish the
9791	9791	15 requirements of Section 1-56 and subsection (c) of
9792	9792	16 Section 1-75 of the Illinois Power Agency Act. The
9793	9793	17 Commission shall also approve the process for the
9794	9794	18 submission, review, and approval of the proposed
9795	9795	19 contracts to procure renewable energy credits or
9796	9796	20 implement the programs authorized by the
9797	9797	21 Commission pursuant to a long-term renewable
9798	9798	22 resources procurement plan approved under this
9799	9799	23 Section.
9800	9800	24 In approving any long-term renewable resources
9801	9801	25 procurement plan after the effective date of this
9802	9802	26 amendatory Act of the 102nd General Assembly, the
9803	9803
9804	9804
9805	9805
9806	9806
9807	9807
9808	9808	SB3949 - 272 - LRB103 40603 LNS 73240 b
9809	9809
9810	9810
9811	9811	SB3949- 273 -LRB103 40603 LNS 73240 b SB3949 - 273 - LRB103 40603 LNS 73240 b
9812	9812	SB3949 - 273 - LRB103 40603 LNS 73240 b
9813	9813	1 Commission shall approve or modify the Agency's
9814	9814	2 proposal for minimum equity standards pursuant to
9815	9815	3 subsection (c-10) of Section 1-75 of the Illinois
9816	9816	4 Power Agency Act. The Commission shall consider
9817	9817	5 any analysis performed by the Agency in developing
9818	9818	6 its proposal, including past performance,
9819	9819	7 availability of equity eligible contractors, and
9820	9820	8 availability of equity eligible persons at the
9821	9821	9 time the long-term renewable resources procurement
9822	9822	10 plan is approved.
9823	9823	11 (iii) The Agency or third parties contracted by
9824	9824	12 the Agency shall implement all programs authorized by
9825	9825	13 the Commission in an approved long-term renewable
9826	9826	14 resources procurement plan without further review and
9827	9827	15 approval by the Commission. Third parties shall not
9828	9828	16 begin implementing any programs or receive any payment
9829	9829	17 under this Section until the Commission has approved
9830	9830	18 the contract or contracts under the process authorized
9831	9831	19 by the Commission in item (D) of subparagraph (ii) of
9832	9832	20 paragraph (5) of this subsection (b) and the third
9833	9833	21 party and the Agency or utility, as applicable, have
9834	9834	22 executed the contract. For those renewable energy
9835	9835	23 credits subject to procurement through a competitive
9836	9836	24 bid process under the plan or under the initial
9837	9837	25 forward procurements for wind and solar resources
9838	9838	26 described in subparagraph (G) of paragraph (1) of
9839	9839
9840	9840
9841	9841
9842	9842
9843	9843
9844	9844	SB3949 - 273 - LRB103 40603 LNS 73240 b
9845	9845
9846	9846
9847	9847	SB3949- 274 -LRB103 40603 LNS 73240 b SB3949 - 274 - LRB103 40603 LNS 73240 b
9848	9848	SB3949 - 274 - LRB103 40603 LNS 73240 b
9849	9849	1 subsection (c) of Section 1-75 of the Illinois Power
9850	9850	2 Agency Act, the Agency shall follow the procurement
9851	9851	3 process specified in the provisions relating to
9852	9852	4 electricity procurement in subsections (e) through (i)
9853	9853	5 of this Section.
9854	9854	6 (iv) An electric utility shall recover its costs
9855	9855	7 associated with the procurement of renewable energy
9856	9856	8 credits under this Section and pursuant to subsection
9857	9857	9 (c-5) of Section 1-75 of the Illinois Power Agency Act
9858	9858	10 through an automatic adjustment clause tariff under
9859	9859	11 subsection (k) or a tariff pursuant to subsection
9860	9860	12 (i-5), as applicable, of Section 16-108 of this Act. A
9861	9861	13 utility shall not be required to advance any payment
9862	9862	14 or pay any amounts under this Section that exceed the
9863	9863	15 actual amount of revenues collected by the utility
9864	9864	16 under paragraph (6) of subsection (c) of Section 1-75
9865	9865	17 of the Illinois Power Agency Act, subsection (c-5) of
9866	9866	18 Section 1-75 of the Illinois Power Agency Act, and
9867	9867	19 subsection (k) or subsection (i-5), as applicable, of
9868	9868	20 Section 16-108 of this Act, and contracts executed
9869	9869	21 under this Section shall expressly incorporate this
9870	9870	22 limitation.
9871	9871	23 (v) For the public interest, safety, and welfare,
9872	9872	24 the Agency and the Commission may adopt rules to carry
9873	9873	25 out the provisions of this Section on an emergency
9874	9874	26 basis immediately following the effective date of this
9875	9875
9876	9876
9877	9877
9878	9878
9879	9879
9880	9880	SB3949 - 274 - LRB103 40603 LNS 73240 b
9881	9881
9882	9882
9883	9883	SB3949- 275 -LRB103 40603 LNS 73240 b SB3949 - 275 - LRB103 40603 LNS 73240 b
9884	9884	SB3949 - 275 - LRB103 40603 LNS 73240 b
9885	9885	1 amendatory Act of the 99th General Assembly.
9886	9886	2 (vi) On or before July 1 of each year, the
9887	9887	3 Commission shall hold an informal hearing for the
9888	9888	4 purpose of receiving comments on the prior year's
9889	9889	5 procurement process and any recommendations for
9890	9890	6 change.
9891	9891	7 (b-5) An electric utility that as of January 1, 2019
9892	9892	8 served more than 300,000 retail customers in this State shall
9893	9893	9 purchase renewable energy credits from new renewable energy
9894	9894	10 facilities constructed at or adjacent to the sites of
9895	9895	11 coal-fueled electric generating facilities in this State in
9896	9896	12 accordance with subsection (c-5) of Section 1-75 of the
9897	9897	13 Illinois Power Agency Act. Except as expressly provided in
9898	9898	14 this Section, the plans and procedures for such procurements
9899	9899	15 shall not be included in the procurement plans provided for in
9900	9900	16 this Section, but rather shall be conducted and implemented
9901	9901	17 solely in accordance with subsection (c-5) of Section 1-75 of
9902	9902	18 the Illinois Power Agency Act.
9903	9903	19 (c) The provisions of this subsection (c) shall not apply
9904	9904	20 to procurements conducted pursuant to subsection (c-5) of
9905	9905	21 Section 1-75 of the Illinois Power Agency Act. However, the
9906	9906	22 Agency may retain a procurement administrator to assist the
9907	9907	23 Agency in planning and carrying out the procurement events and
9908	9908	24 implementing the other requirements specified in such
9909	9909	25 subsection (c-5) of Section 1-75 of the Illinois Power Agency
9910	9910	26 Act, with the costs incurred by the Agency for the procurement
9911	9911
9912	9912
9913	9913
9914	9914
9915	9915
9916	9916	SB3949 - 275 - LRB103 40603 LNS 73240 b
9917	9917
9918	9918
9919	9919	SB3949- 276 -LRB103 40603 LNS 73240 b SB3949 - 276 - LRB103 40603 LNS 73240 b
9920	9920	SB3949 - 276 - LRB103 40603 LNS 73240 b
9921	9921	1 administrator to be recovered through fees charged to
9922	9922	2 applicants for selection to sell and deliver renewable energy
9923	9923	3 credits to electric utilities pursuant to subsection (c-5) of
9924	9924	4 Section 1-75 of the Illinois Power Agency Act. The procurement
9925	9925	5 process set forth in Section 1-75 of the Illinois Power Agency
9926	9926	6 Act and subsection (e) of this Section shall be administered
9927	9927	7 by a procurement administrator and monitored by a procurement
9928	9928	8 monitor.
9929	9929	9 (1) The procurement administrator shall:
9930	9930	10 (i) design the final procurement process in
9931	9931	11 accordance with Section 1-75 of the Illinois Power
9932	9932	12 Agency Act and subsection (e) of this Section
9933	9933	13 following Commission approval of the procurement plan;
9934	9934	14 (ii) develop benchmarks in accordance with
9935	9935	15 subsection (e)(3) to be used to evaluate bids; these
9936	9936	16 benchmarks shall be submitted to the Commission for
9937	9937	17 review and approval on a confidential basis prior to
9938	9938	18 the procurement event;
9939	9939	19 (iii) serve as the interface between the electric
9940	9940	20 utility and suppliers;
9941	9941	21 (iv) manage the bidder pre-qualification and
9942	9942	22 registration process;
9943	9943	23 (v) obtain the electric utilities' agreement to
9944	9944	24 the final form of all supply contracts and credit
9945	9945	25 collateral agreements;
9946	9946	26 (vi) administer the request for proposals process;
9947	9947
9948	9948
9949	9949
9950	9950
9951	9951
9952	9952	SB3949 - 276 - LRB103 40603 LNS 73240 b
9953	9953
9954	9954
9955	9955	SB3949- 277 -LRB103 40603 LNS 73240 b SB3949 - 277 - LRB103 40603 LNS 73240 b
9956	9956	SB3949 - 277 - LRB103 40603 LNS 73240 b
9957	9957	1 (vii) have the discretion to negotiate to
9958	9958	2 determine whether bidders are willing to lower the
9959	9959	3 price of bids that meet the benchmarks approved by the
9960	9960	4 Commission; any post-bid negotiations with bidders
9961	9961	5 shall be limited to price only and shall be completed
9962	9962	6 within 24 hours after opening the sealed bids and
9963	9963	7 shall be conducted in a fair and unbiased manner; in
9964	9964	8 conducting the negotiations, there shall be no
9965	9965	9 disclosure of any information derived from proposals
9966	9966	10 submitted by competing bidders; if information is
9967	9967	11 disclosed to any bidder, it shall be provided to all
9968	9968	12 competing bidders;
9969	9969	13 (viii) maintain confidentiality of supplier and
9970	9970	14 bidding information in a manner consistent with all
9971	9971	15 applicable laws, rules, regulations, and tariffs;
9972	9972	16 (ix) submit a confidential report to the
9973	9973	17 Commission recommending acceptance or rejection of
9974	9974	18 bids;
9975	9975	19 (x) notify the utility of contract counterparties
9976	9976	20 and contract specifics; and
9977	9977	21 (xi) administer related contingency procurement
9978	9978	22 events.
9979	9979	23 (2) The procurement monitor, who shall be retained by
9980	9980	24 the Commission, shall:
9981	9981	25 (i) monitor interactions among the procurement
9982	9982	26 administrator, suppliers, and utility;
9983	9983
9984	9984
9985	9985
9986	9986
9987	9987
9988	9988	SB3949 - 277 - LRB103 40603 LNS 73240 b
9989	9989
9990	9990
9991	9991	SB3949- 278 -LRB103 40603 LNS 73240 b SB3949 - 278 - LRB103 40603 LNS 73240 b
9992	9992	SB3949 - 278 - LRB103 40603 LNS 73240 b
9993	9993	1 (ii) monitor and report to the Commission on the
9994	9994	2 progress of the procurement process;
9995	9995	3 (iii) provide an independent confidential report
9996	9996	4 to the Commission regarding the results of the
9997	9997	5 procurement event;
9998	9998	6 (iv) assess compliance with the procurement plans
9999	9999	7 approved by the Commission for each utility that on
10000	10000	8 December 31, 2005 provided electric service to at
10001	10001	9 least 100,000 customers in Illinois and for each small
10002	10002	10 multi-jurisdictional utility that on December 31, 2005
10003	10003	11 served less than 100,000 customers in Illinois;
10004	10004	12 (v) preserve the confidentiality of supplier and
10005	10005	13 bidding information in a manner consistent with all
10006	10006	14 applicable laws, rules, regulations, and tariffs;
10007	10007	15 (vi) provide expert advice to the Commission and
10008	10008	16 consult with the procurement administrator regarding
10009	10009	17 issues related to procurement process design, rules,
10010	10010	18 protocols, and policy-related matters; and
10011	10011	19 (vii) consult with the procurement administrator
10012	10012	20 regarding the development and use of benchmark
10013	10013	21 criteria, standard form contracts, credit policies,
10014	10014	22 and bid documents.
10015	10015	23 (d) Except as provided in subsection (j), the planning
10016	10016	24 process shall be conducted as follows:
10017	10017	25 (1) Beginning in 2008, each Illinois utility procuring
10018	10018	26 power pursuant to this Section shall annually provide a
10019	10019
10020	10020
10021	10021
10022	10022
10023	10023
10024	10024	SB3949 - 278 - LRB103 40603 LNS 73240 b
10025	10025
10026	10026
10027	10027	SB3949- 279 -LRB103 40603 LNS 73240 b SB3949 - 279 - LRB103 40603 LNS 73240 b
10028	10028	SB3949 - 279 - LRB103 40603 LNS 73240 b
10029	10029	1 range of load forecasts to the Illinois Power Agency by
10030	10030	2 July 15 of each year, or such other date as may be required
10031	10031	3 by the Commission or Agency. The load forecasts shall
10032	10032	4 cover the 5-year procurement planning period for the next
10033	10033	5 procurement plan and shall include hourly data
10034	10034	6 representing a high-load, low-load, and expected-load
10035	10035	7 scenario for the load of those retail customers included
10036	10036	8 in the plan's electric supply service requirements. The
10037	10037	9 utility shall provide supporting data and assumptions for
10038	10038	10 each of the scenarios.
10039	10039	11 (2) Beginning in 2008, the Illinois Power Agency shall
10040	10040	12 prepare a procurement plan by August 15th of each year, or
10041	10041	13 such other date as may be required by the Commission. The
10042	10042	14 procurement plan shall identify the portfolio of
10043	10043	15 demand-response and power and energy products to be
10044	10044	16 procured. Cost-effective demand-response measures shall be
10045	10045	17 procured as set forth in item (iii) of subsection (b) of
10046	10046	18 this Section. Copies of the procurement plan shall be
10047	10047	19 posted and made publicly available on the Agency's and
10048	10048	20 Commission's websites, and copies shall also be provided
10049	10049	21 to each affected electric utility. An affected utility
10050	10050	22 shall have 30 days following the date of posting to
10051	10051	23 provide comment to the Agency on the procurement plan.
10052	10052	24 Other interested entities also may comment on the
10053	10053	25 procurement plan. All comments submitted to the Agency
10054	10054	26 shall be specific, supported by data or other detailed
10055	10055
10056	10056
10057	10057
10058	10058
10059	10059
10060	10060	SB3949 - 279 - LRB103 40603 LNS 73240 b
10061	10061
10062	10062
10063	10063	SB3949- 280 -LRB103 40603 LNS 73240 b SB3949 - 280 - LRB103 40603 LNS 73240 b
10064	10064	SB3949 - 280 - LRB103 40603 LNS 73240 b
10065	10065	1 analyses, and, if objecting to all or a portion of the
10066	10066	2 procurement plan, accompanied by specific alternative
10067	10067	3 wording or proposals. All comments shall be posted on the
10068	10068	4 Agency's and Commission's websites. During this 30-day
10069	10069	5 comment period, the Agency shall hold at least one public
10070	10070	6 hearing within each utility's service area for the purpose
10071	10071	7 of receiving public comment on the procurement plan.
10072	10072	8 Within 14 days following the end of the 30-day review
10073	10073	9 period, the Agency shall revise the procurement plan as
10074	10074	10 necessary based on the comments received and file the
10075	10075	11 procurement plan with the Commission and post the
10076	10076	12 procurement plan on the websites.
10077	10077	13 (3) Within 5 days after the filing of the procurement
10078	10078	14 plan, any person objecting to the procurement plan shall
10079	10079	15 file an objection with the Commission. Within 10 days
10080	10080	16 after the filing, the Commission shall determine whether a
10081	10081	17 hearing is necessary. The Commission shall enter its order
10082	10082	18 confirming or modifying the procurement plan within 90
10083	10083	19 days after the filing of the procurement plan by the
10084	10084	20 Illinois Power Agency.
10085	10085	21 (4) The Commission shall approve the procurement plan,
10086	10086	22 including expressly the forecast used in the procurement
10087	10087	23 plan, if the Commission determines that it will ensure
10088	10088	24 adequate, reliable, affordable, efficient, and
10089	10089	25 environmentally sustainable electric service at the lowest
10090	10090	26 total cost over time, taking into account any benefits of
10091	10091
10092	10092
10093	10093
10094	10094
10095	10095
10096	10096	SB3949 - 280 - LRB103 40603 LNS 73240 b
10097	10097
10098	10098
10099	10099	SB3949- 281 -LRB103 40603 LNS 73240 b SB3949 - 281 - LRB103 40603 LNS 73240 b
10100	10100	SB3949 - 281 - LRB103 40603 LNS 73240 b
10101	10101	1 price stability.
10102	10102	2 (4.5) The Commission shall review the Agency's
10103	10103	3 recommendations for the selection of applicants to enter
10104	10104	4 into long-term contracts for the sale and delivery of
10105	10105	5 renewable energy credits from new renewable energy
10106	10106	6 facilities to be constructed at or adjacent to the sites
10107	10107	7 of coal-fueled electric generating facilities in this
10108	10108	8 State in accordance with the provisions of subsection
10109	10109	9 (c-5) of Section 1-75 of the Illinois Power Agency Act,
10110	10110	10 and shall approve the Agency's recommendations if the
10111	10111	11 Commission determines that the applicants recommended by
10112	10112	12 the Agency for selection, the proposed new renewable
10113	10113	13 energy facilities to be constructed, the amounts of
10114	10114	14 renewable energy credits to be delivered pursuant to the
10115	10115	15 contracts, and the other terms of the contracts, are
10116	10116	16 consistent with the requirements of subsection (c-5) of
10117	10117	17 Section 1-75 of the Illinois Power Agency Act.
10118	10118	18 (e) The procurement process shall include each of the
10119	10119	19 following components:
10120	10120	20 (1) Solicitation, pre-qualification, and registration
10121	10121	21 of bidders. The procurement administrator shall
10122	10122	22 disseminate information to potential bidders to promote a
10123	10123	23 procurement event, notify potential bidders that the
10124	10124	24 procurement administrator may enter into a post-bid price
10125	10125	25 negotiation with bidders that meet the applicable
10126	10126	26 benchmarks, provide supply requirements, and otherwise
10127	10127
10128	10128
10129	10129
10130	10130
10131	10131
10132	10132	SB3949 - 281 - LRB103 40603 LNS 73240 b
10133	10133
10134	10134
10135	10135	SB3949- 282 -LRB103 40603 LNS 73240 b SB3949 - 282 - LRB103 40603 LNS 73240 b
10136	10136	SB3949 - 282 - LRB103 40603 LNS 73240 b
10137	10137	1 explain the competitive procurement process. In addition
10138	10138	2 to such other publication as the procurement administrator
10139	10139	3 determines is appropriate, this information shall be
10140	10140	4 posted on the Illinois Power Agency's and the Commission's
10141	10141	5 websites. The procurement administrator shall also
10142	10142	6 administer the prequalification process, including
10143	10143	7 evaluation of credit worthiness, compliance with
10144	10144	8 procurement rules, and agreement to the standard form
10145	10145	9 contract developed pursuant to paragraph (2) of this
10146	10146	10 subsection (e). The procurement administrator shall then
10147	10147	11 identify and register bidders to participate in the
10148	10148	12 procurement event.
10149	10149	13 (2) Standard contract forms and credit terms and
10150	10150	14 instruments. The procurement administrator, in
10151	10151	15 consultation with the utilities, the Commission, and other
10152	10152	16 interested parties and subject to Commission oversight,
10153	10153	17 shall develop and provide standard contract forms for the
10154	10154	18 supplier contracts that meet generally accepted industry
10155	10155	19 practices. Standard credit terms and instruments that meet
10156	10156	20 generally accepted industry practices shall be similarly
10157	10157	21 developed. The procurement administrator shall make
10158	10158	22 available to the Commission all written comments it
10159	10159	23 receives on the contract forms, credit terms, or
10160	10160	24 instruments. If the procurement administrator cannot reach
10161	10161	25 agreement with the applicable electric utility as to the
10162	10162	26 contract terms and conditions, the procurement
10163	10163
10164	10164
10165	10165
10166	10166
10167	10167
10168	10168	SB3949 - 282 - LRB103 40603 LNS 73240 b
10169	10169
10170	10170
10171	10171	SB3949- 283 -LRB103 40603 LNS 73240 b SB3949 - 283 - LRB103 40603 LNS 73240 b
10172	10172	SB3949 - 283 - LRB103 40603 LNS 73240 b
10173	10173	1 administrator must notify the Commission of any disputed
10174	10174	2 terms and the Commission shall resolve the dispute. The
10175	10175	3 terms of the contracts shall not be subject to negotiation
10176	10176	4 by winning bidders, and the bidders must agree to the
10177	10177	5 terms of the contract in advance so that winning bids are
10178	10178	6 selected solely on the basis of price.
10179	10179	7 (3) Establishment of a market-based price benchmark.
10180	10180	8 As part of the development of the procurement process, the
10181	10181	9 procurement administrator, in consultation with the
10182	10182	10 Commission staff, Agency staff, and the procurement
10183	10183	11 monitor, shall establish benchmarks for evaluating the
10184	10184	12 final prices in the contracts for each of the products
10185	10185	13 that will be procured through the procurement process. The
10186	10186	14 benchmarks shall be based on price data for similar
10187	10187	15 products for the same delivery period and same delivery
10188	10188	16 hub, or other delivery hubs after adjusting for that
10189	10189	17 difference. The price benchmarks may also be adjusted to
10190	10190	18 take into account differences between the information
10191	10191	19 reflected in the underlying data sources and the specific
10192	10192	20 products and procurement process being used to procure
10193	10193	21 power for the Illinois utilities. The benchmarks shall be
10194	10194	22 confidential but shall be provided to, and will be subject
10195	10195	23 to Commission review and approval, prior to a procurement
10196	10196	24 event.
10197	10197	25 (4) Request for proposals competitive procurement
10198	10198	26 process. The procurement administrator shall design and
10199	10199
10200	10200
10201	10201
10202	10202
10203	10203
10204	10204	SB3949 - 283 - LRB103 40603 LNS 73240 b
10205	10205
10206	10206
10207	10207	SB3949- 284 -LRB103 40603 LNS 73240 b SB3949 - 284 - LRB103 40603 LNS 73240 b
10208	10208	SB3949 - 284 - LRB103 40603 LNS 73240 b
10209	10209	1 issue a request for proposals to supply electricity in
10210	10210	2 accordance with each utility's procurement plan, as
10211	10211	3 approved by the Commission. The request for proposals
10212	10212	4 shall set forth a procedure for sealed, binding commitment
10213	10213	5 bidding with pay-as-bid settlement, and provision for
10214	10214	6 selection of bids on the basis of price.
10215	10215	7 (5) A plan for implementing contingencies in the event
10216	10216	8 of supplier default or failure of the procurement process
10217	10217	9 to fully meet the expected load requirement due to
10218	10218	10 insufficient supplier participation, Commission rejection
10219	10219	11 of results, or any other cause.
10220	10220	12 (i) Event of supplier default: In the event of
10221	10221	13 supplier default, the utility shall review the
10222	10222	14 contract of the defaulting supplier to determine if
10223	10223	15 the amount of supply is 200 megawatts or greater, and
10224	10224	16 if there are more than 60 days remaining of the
10225	10225	17 contract term. If both of these conditions are met,
10226	10226	18 and the default results in termination of the
10227	10227	19 contract, the utility shall immediately notify the
10228	10228	20 Illinois Power Agency that a request for proposals
10229	10229	21 must be issued to procure replacement power, and the
10230	10230	22 procurement administrator shall run an additional
10231	10231	23 procurement event. If the contracted supply of the
10232	10232	24 defaulting supplier is less than 200 megawatts or
10233	10233	25 there are less than 60 days remaining of the contract
10234	10234	26 term, the utility shall procure power and energy from
10235	10235
10236	10236
10237	10237
10238	10238
10239	10239
10240	10240	SB3949 - 284 - LRB103 40603 LNS 73240 b
10241	10241
10242	10242
10243	10243	SB3949- 285 -LRB103 40603 LNS 73240 b SB3949 - 285 - LRB103 40603 LNS 73240 b
10244	10244	SB3949 - 285 - LRB103 40603 LNS 73240 b
10245	10245	1 the applicable regional transmission organization
10246	10246	2 market, including ancillary services, capacity, and
10247	10247	3 day-ahead or real time energy, or both, for the
10248	10248	4 duration of the contract term to replace the
10249	10249	5 contracted supply; provided, however, that if a needed
10250	10250	6 product is not available through the regional
10251	10251	7 transmission organization market it shall be purchased
10252	10252	8 from the wholesale market.
10253	10253	9 (ii) Failure of the procurement process to fully
10254	10254	10 meet the expected load requirement: If the procurement
10255	10255	11 process fails to fully meet the expected load
10256	10256	12 requirement due to insufficient supplier participation
10257	10257	13 or due to a Commission rejection of the procurement
10258	10258	14 results, the procurement administrator, the
10259	10259	15 procurement monitor, and the Commission staff shall
10260	10260	16 meet within 10 days to analyze potential causes of low
10261	10261	17 supplier interest or causes for the Commission
10262	10262	18 decision. If changes are identified that would likely
10263	10263	19 result in increased supplier participation, or that
10264	10264	20 would address concerns causing the Commission to
10265	10265	21 reject the results of the prior procurement event, the
10266	10266	22 procurement administrator may implement those changes
10267	10267	23 and rerun the request for proposals process according
10268	10268	24 to a schedule determined by those parties and
10269	10269	25 consistent with Section 1-75 of the Illinois Power
10270	10270	26 Agency Act and this subsection. In any event, a new
10271	10271
10272	10272
10273	10273
10274	10274
10275	10275
10276	10276	SB3949 - 285 - LRB103 40603 LNS 73240 b
10277	10277
10278	10278
10279	10279	SB3949- 286 -LRB103 40603 LNS 73240 b SB3949 - 286 - LRB103 40603 LNS 73240 b
10280	10280	SB3949 - 286 - LRB103 40603 LNS 73240 b
10281	10281	1 request for proposals process shall be implemented by
10282	10282	2 the procurement administrator within 90 days after the
10283	10283	3 determination that the procurement process has failed
10284	10284	4 to fully meet the expected load requirement.
10285	10285	5 (iii) In all cases where there is insufficient
10286	10286	6 supply provided under contracts awarded through the
10287	10287	7 procurement process to fully meet the electric
10288	10288	8 utility's load requirement, the utility shall meet the
10289	10289	9 load requirement by procuring power and energy from
10290	10290	10 the applicable regional transmission organization
10291	10291	11 market, including ancillary services, capacity, and
10292	10292	12 day-ahead or real time energy, or both; provided,
10293	10293	13 however, that if a needed product is not available
10294	10294	14 through the regional transmission organization market
10295	10295	15 it shall be purchased from the wholesale market.
10296	10296	16 (6) The procurement processes described in this
10297	10297	17 subsection and in subsection (c-5) of Section 1-75 of the
10298	10298	18 Illinois Power Agency Act are exempt from the requirements
10299	10299	19 of the Illinois Procurement Code, pursuant to Section
10300	10300	20 20-10 of that Code.
10301	10301	21 (f) Within 2 business days after opening the sealed bids,
10302	10302	22 the procurement administrator shall submit a confidential
10303	10303	23 report to the Commission. The report shall contain the results
10304	10304	24 of the bidding for each of the products along with the
10305	10305	25 procurement administrator's recommendation for the acceptance
10306	10306	26 and rejection of bids based on the price benchmark criteria
10307	10307
10308	10308
10309	10309
10310	10310
10311	10311
10312	10312	SB3949 - 286 - LRB103 40603 LNS 73240 b
10313	10313
10314	10314
10315	10315	SB3949- 287 -LRB103 40603 LNS 73240 b SB3949 - 287 - LRB103 40603 LNS 73240 b
10316	10316	SB3949 - 287 - LRB103 40603 LNS 73240 b
10317	10317	1 and other factors observed in the process. The procurement
10318	10318	2 monitor also shall submit a confidential report to the
10319	10319	3 Commission within 2 business days after opening the sealed
10320	10320	4 bids. The report shall contain the procurement monitor's
10321	10321	5 assessment of bidder behavior in the process as well as an
10322	10322	6 assessment of the procurement administrator's compliance with
10323	10323	7 the procurement process and rules. The Commission shall review
10324	10324	8 the confidential reports submitted by the procurement
10325	10325	9 administrator and procurement monitor, and shall accept or
10326	10326	10 reject the recommendations of the procurement administrator
10327	10327	11 within 2 business days after receipt of the reports.
10328	10328	12 (g) Within 3 business days after the Commission decision
10329	10329	13 approving the results of a procurement event, the utility
10330	10330	14 shall enter into binding contractual arrangements with the
10331	10331	15 winning suppliers using the standard form contracts; except
10332	10332	16 that the utility shall not be required either directly or
10333	10333	17 indirectly to execute the contracts if a tariff that is
10334	10334	18 consistent with subsection (l) of this Section has not been
10335	10335	19 approved and placed into effect for that utility.
10336	10336	20 (h) For the procurement of standard wholesale products,
10337	10337	21 the names of the successful bidders and the load weighted
10338	10338	22 average of the winning bid prices for each contract type and
10339	10339	23 for each contract term shall be made available to the public at
10340	10340	24 the time of Commission approval of a procurement event. For
10341	10341	25 procurements conducted to meet the requirements of subsection
10342	10342	26 (b) of Section 1-56 or subsection (c) of Section 1-75 of the
10343	10343
10344	10344
10345	10345
10346	10346
10347	10347
10348	10348	SB3949 - 287 - LRB103 40603 LNS 73240 b
10349	10349
10350	10350
10351	10351	SB3949- 288 -LRB103 40603 LNS 73240 b SB3949 - 288 - LRB103 40603 LNS 73240 b
10352	10352	SB3949 - 288 - LRB103 40603 LNS 73240 b
10353	10353	1 Illinois Power Agency Act governed by the provisions of this
10354	10354	2 Section, the address and nameplate capacity of the new
10355	10355	3 renewable energy generating facility proposed by a winning
10356	10356	4 bidder shall also be made available to the public at the time
10357	10357	5 of Commission approval of a procurement event, along with the
10358	10358	6 business address and contact information for any winning
10359	10359	7 bidder. An estimate or approximation of the nameplate capacity
10360	10360	8 of the new renewable energy generating facility may be
10361	10361	9 disclosed if necessary to protect the confidentiality of
10362	10362	10 individual bid prices.
10363	10363	11 The Commission, the procurement monitor, the procurement
10364	10364	12 administrator, the Illinois Power Agency, and all participants
10365	10365	13 in the procurement process shall maintain the confidentiality
10366	10366	14 of all other supplier and bidding information in a manner
10367	10367	15 consistent with all applicable laws, rules, regulations, and
10368	10368	16 tariffs. Confidential information, including the confidential
10369	10369	17 reports submitted by the procurement administrator and
10370	10370	18 procurement monitor pursuant to subsection (f) of this
10371	10371	19 Section, shall not be made publicly available and shall not be
10372	10372	20 discoverable by any party in any proceeding, absent a
10373	10373	21 compelling demonstration of need, nor shall those reports be
10374	10374	22 admissible in any proceeding other than one for law
10375	10375	23 enforcement purposes.
10376	10376	24 (i) Within 2 business days after a Commission decision
10377	10377	25 approving the results of a procurement event or such other
10378	10378	26 date as may be required by the Commission from time to time,
10379	10379
10380	10380
10381	10381
10382	10382
10383	10383
10384	10384	SB3949 - 288 - LRB103 40603 LNS 73240 b
10385	10385
10386	10386
10387	10387	SB3949- 289 -LRB103 40603 LNS 73240 b SB3949 - 289 - LRB103 40603 LNS 73240 b
10388	10388	SB3949 - 289 - LRB103 40603 LNS 73240 b
10389	10389	1 the utility shall file for informational purposes with the
10390	10390	2 Commission its actual or estimated retail supply charges, as
10391	10391	3 applicable, by customer supply group reflecting the costs
10392	10392	4 associated with the procurement and computed in accordance
10393	10393	5 with the tariffs filed pursuant to subsection (l) of this
10394	10394	6 Section and approved by the Commission.
10395	10395	7 (j) Within 60 days following August 28, 2007 (the
10396	10396	8 effective date of Public Act 95-481), each electric utility
10397	10397	9 that on December 31, 2005 provided electric service to at
10398	10398	10 least 100,000 customers in Illinois shall prepare and file
10399	10399	11 with the Commission an initial procurement plan, which shall
10400	10400	12 conform in all material respects to the requirements of the
10401	10401	13 procurement plan set forth in subsection (b); provided,
10402	10402	14 however, that the Illinois Power Agency Act shall not apply to
10403	10403	15 the initial procurement plan prepared pursuant to this
10404	10404	16 subsection. The initial procurement plan shall identify the
10405	10405	17 portfolio of power and energy products to be procured and
10406	10406	18 delivered for the period June 2008 through May 2009, and shall
10407	10407	19 identify the proposed procurement administrator, who shall
10408	10408	20 have the same experience and expertise as is required of a
10409	10409	21 procurement administrator hired pursuant to Section 1-75 of
10410	10410	22 the Illinois Power Agency Act. Copies of the procurement plan
10411	10411	23 shall be posted and made publicly available on the
10412	10412	24 Commission's website. The initial procurement plan may include
10413	10413	25 contracts for renewable resources that extend beyond May 2009.
10414	10414	26 (i) Within 14 days following filing of the initial
10415	10415
10416	10416
10417	10417
10418	10418
10419	10419
10420	10420	SB3949 - 289 - LRB103 40603 LNS 73240 b
10421	10421
10422	10422
10423	10423	SB3949- 290 -LRB103 40603 LNS 73240 b SB3949 - 290 - LRB103 40603 LNS 73240 b
10424	10424	SB3949 - 290 - LRB103 40603 LNS 73240 b
10425	10425	1 procurement plan, any person may file a detailed objection
10426	10426	2 with the Commission contesting the procurement plan
10427	10427	3 submitted by the electric utility. All objections to the
10428	10428	4 electric utility's plan shall be specific, supported by
10429	10429	5 data or other detailed analyses. The electric utility may
10430	10430	6 file a response to any objections to its procurement plan
10431	10431	7 within 7 days after the date objections are due to be
10432	10432	8 filed. Within 7 days after the date the utility's response
10433	10433	9 is due, the Commission shall determine whether a hearing
10434	10434	10 is necessary. If it determines that a hearing is
10435	10435	11 necessary, it shall require the hearing to be completed
10436	10436	12 and issue an order on the procurement plan within 60 days
10437	10437	13 after the filing of the procurement plan by the electric
10438	10438	14 utility.
10439	10439	15 (ii) The order shall approve or modify the procurement
10440	10440	16 plan, approve an independent procurement administrator,
10441	10441	17 and approve or modify the electric utility's tariffs that
10442	10442	18 are proposed with the initial procurement plan. The
10443	10443	19 Commission shall approve the procurement plan if the
10444	10444	20 Commission determines that it will ensure adequate,
10445	10445	21 reliable, affordable, efficient, and environmentally
10446	10446	22 sustainable electric service at the lowest total cost over
10447	10447	23 time, taking into account any benefits of price stability.
10448	10448	24 (k) (Blank).
10449	10449	25 (k-5) (Blank).
10450	10450	26 (l) An electric utility shall recover its costs incurred
10451	10451
10452	10452
10453	10453
10454	10454
10455	10455
10456	10456	SB3949 - 290 - LRB103 40603 LNS 73240 b
10457	10457
10458	10458
10459	10459	SB3949- 291 -LRB103 40603 LNS 73240 b SB3949 - 291 - LRB103 40603 LNS 73240 b
10460	10460	SB3949 - 291 - LRB103 40603 LNS 73240 b
10461	10461	1 under this Section and subsection (c-5) of Section 1-75 of the
10462	10462	2 Illinois Power Agency Act, including, but not limited to, the
10463	10463	3 costs of procuring power and energy demand-response resources
10464	10464	4 under this Section and its costs for purchasing renewable
10465	10465	5 energy credits pursuant to subsection (c-5) of Section 1-75 of
10466	10466	6 the Illinois Power Agency Act. The utility shall file with the
10467	10467	7 initial procurement plan its proposed tariffs through which
10468	10468	8 its costs of procuring power that are incurred pursuant to a
10469	10469	9 Commission-approved procurement plan and those other costs
10470	10470	10 identified in this subsection (l), will be recovered. The
10471	10471	11 tariffs shall include a formula rate or charge designed to
10472	10472	12 pass through both the costs incurred by the utility in
10473	10473	13 procuring a supply of electric power and energy for the
10474	10474	14 applicable customer classes with no mark-up or return on the
10475	10475	15 price paid by the utility for that supply, plus any just and
10476	10476	16 reasonable costs that the utility incurs in arranging and
10477	10477	17 providing for the supply of electric power and energy. The
10478	10478	18 formula rate or charge shall also contain provisions that
10479	10479	19 ensure that its application does not result in over or under
10480	10480	20 recovery due to changes in customer usage and demand patterns,
10481	10481	21 and that provide for the correction, on at least an annual
10482	10482	22 basis, of any accounting errors that may occur. A utility
10483	10483	23 shall recover through the tariff all reasonable costs incurred
10484	10484	24 to implement or comply with any procurement plan that is
10485	10485	25 developed and put into effect pursuant to Section 1-75 of the
10486	10486	26 Illinois Power Agency Act and this Section, and for the
10487	10487
10488	10488
10489	10489
10490	10490
10491	10491
10492	10492	SB3949 - 291 - LRB103 40603 LNS 73240 b
10493	10493
10494	10494
10495	10495	SB3949- 292 -LRB103 40603 LNS 73240 b SB3949 - 292 - LRB103 40603 LNS 73240 b
10496	10496	SB3949 - 292 - LRB103 40603 LNS 73240 b
10497	10497	1 procurement of renewable energy credits pursuant to subsection
10498	10498	2 (c-5) of Section 1-75 of the Illinois Power Agency Act,
10499	10499	3 including any fees assessed by the Illinois Power Agency,
10500	10500	4 costs associated with load balancing, and contingency plan
10501	10501	5 costs. The electric utility shall also recover its full costs
10502	10502	6 of procuring electric supply for which it contracted before
10503	10503	7 the effective date of this Section in conjunction with the
10504	10504	8 provision of full requirements service under fixed-price
10505	10505	9 bundled service tariffs subsequent to December 31, 2006. All
10506	10506	10 such costs shall be deemed to have been prudently incurred.
10507	10507	11 The pass-through tariffs that are filed and approved pursuant
10508	10508	12 to this Section shall not be subject to review under, or in any
10509	10509	13 way limited by, Section 16-111(i) of this Act. All of the costs
10510	10510	14 incurred by the electric utility associated with the purchase
10511	10511	15 of zero emission credits in accordance with subsection (d-5)
10512	10512	16 of Section 1-75 of the Illinois Power Agency Act, all costs
10513	10513	17 incurred by the electric utility associated with the purchase
10514	10514	18 of carbon mitigation credits in accordance with subsection
10515	10515	19 (d-10) of Section 1-75 of the Illinois Power Agency Act, and,
10516	10516	20 beginning June 1, 2017, all of the costs incurred by the
10517	10517	21 electric utility associated with the purchase of renewable
10518	10518	22 energy resources in accordance with Sections 1-56 and 1-75 of
10519	10519	23 the Illinois Power Agency Act, and all of the costs incurred by
10520	10520	24 the electric utility in purchasing renewable energy credits in
10521	10521	25 accordance with subsection (c-5) of Section 1-75 of the
10522	10522	26 Illinois Power Agency Act, shall be recovered through the
10523	10523
10524	10524
10525	10525
10526	10526
10527	10527
10528	10528	SB3949 - 292 - LRB103 40603 LNS 73240 b
10529	10529
10530	10530
10531	10531	SB3949- 293 -LRB103 40603 LNS 73240 b SB3949 - 293 - LRB103 40603 LNS 73240 b
10532	10532	SB3949 - 293 - LRB103 40603 LNS 73240 b
10533	10533	1 electric utility's tariffed charges applicable to all of its
10534	10534	2 retail customers, as specified in subsection (k) or subsection
10535	10535	3 (i-5), as applicable, of Section 16-108 of this Act, and shall
10536	10536	4 not be recovered through the electric utility's tariffed
10537	10537	5 charges for electric power and energy supply to its eligible
10538	10538	6 retail customers.
10539	10539	7 (m) The Commission has the authority to adopt rules to
10540	10540	8 carry out the provisions of this Section. For the public
10541	10541	9 interest, safety, and welfare, the Commission also has
10542	10542	10 authority to adopt rules to carry out the provisions of this
10543	10543	11 Section on an emergency basis immediately following August 28,
10544	10544	12 2007 (the effective date of Public Act 95-481).
10545	10545	13 (n) Notwithstanding any other provision of this Act, any
10546	10546	14 affiliated electric utilities that submit a single procurement
10547	10547	15 plan covering their combined needs may procure for those
10548	10548	16 combined needs in conjunction with that plan, and may enter
10549	10549	17 jointly into power supply contracts, purchases, and other
10550	10550	18 procurement arrangements, and allocate capacity and energy and
10551	10551	19 cost responsibility therefor among themselves in proportion to
10552	10552	20 their requirements.
10553	10553	21 (o) On or before June 1 of each year, the Commission shall
10554	10554	22 hold an informal hearing for the purpose of receiving comments
10555	10555	23 on the prior year's procurement process and any
10556	10556	24 recommendations for change.
10557	10557	25 (p) An electric utility subject to this Section may
10558	10558	26 propose to invest, lease, own, or operate an electric
10559	10559
10560	10560
10561	10561
10562	10562
10563	10563
10564	10564	SB3949 - 293 - LRB103 40603 LNS 73240 b
10565	10565
10566	10566
10567	10567	SB3949- 294 -LRB103 40603 LNS 73240 b SB3949 - 294 - LRB103 40603 LNS 73240 b
10568	10568	SB3949 - 294 - LRB103 40603 LNS 73240 b
10569	10569	1 generation facility as part of its procurement plan, provided
10570	10570	2 the utility demonstrates that such facility is the least-cost
10571	10571	3 option to provide electric service to those retail customers
10572	10572	4 included in the plan's electric supply service requirements.
10573	10573	5 If the facility is shown to be the least-cost option and is
10574	10574	6 included in a procurement plan prepared in accordance with
10575	10575	7 Section 1-75 of the Illinois Power Agency Act and this
10576	10576	8 Section, then the electric utility shall make a filing
10577	10577	9 pursuant to Section 8-406 of this Act, and may request of the
10578	10578	10 Commission any statutory relief required thereunder. If the
10579	10579	11 Commission grants all of the necessary approvals for the
10580	10580	12 proposed facility, such supply shall thereafter be considered
10581	10581	13 as a pre-existing contract under subsection (b) of this
10582	10582	14 Section. The Commission shall in any order approving a
10583	10583	15 proposal under this subsection specify how the utility will
10584	10584	16 recover the prudently incurred costs of investing in, leasing,
10585	10585	17 owning, or operating such generation facility through just and
10586	10586	18 reasonable rates charged to those retail customers included in
10587	10587	19 the plan's electric supply service requirements. Cost recovery
10588	10588	20 for facilities included in the utility's procurement plan
10589	10589	21 pursuant to this subsection shall not be subject to review
10590	10590	22 under or in any way limited by the provisions of Section
10591	10591	23 16-111(i) of this Act. Nothing in this Section is intended to
10592	10592	24 prohibit a utility from filing for a fuel adjustment clause as
10593	10593	25 is otherwise permitted under Section 9-220 of this Act.
10594	10594	26 (q) If the Illinois Power Agency filed with the
10595	10595
10596	10596
10597	10597
10598	10598
10599	10599
10600	10600	SB3949 - 294 - LRB103 40603 LNS 73240 b
10601	10601
10602	10602
10603	10603	SB3949- 295 -LRB103 40603 LNS 73240 b SB3949 - 295 - LRB103 40603 LNS 73240 b
10604	10604	SB3949 - 295 - LRB103 40603 LNS 73240 b
10605	10605	1 Commission, under Section 16-111.5 of this Act, its proposed
10606	10606	2 procurement plan for the period commencing June 1, 2017, and
10607	10607	3 the Commission has not yet entered its final order approving
10608	10608	4 the plan on or before the effective date of this amendatory Act
10609	10609	5 of the 99th General Assembly, then the Illinois Power Agency
10610	10610	6 shall file a notice of withdrawal with the Commission, after
10611	10611	7 the effective date of this amendatory Act of the 99th General
10612	10612	8 Assembly, to withdraw the proposed procurement of renewable
10613	10613	9 energy resources to be approved under the plan, other than the
10614	10614	10 procurement of renewable energy credits from distributed
10615	10615	11 renewable energy generation devices using funds previously
10616	10616	12 collected from electric utilities' retail customers that take
10617	10617	13 service pursuant to electric utilities' hourly pricing tariff
10618	10618	14 or tariffs and, for an electric utility that serves less than
10619	10619	15 100,000 retail customers in the State, other than the
10620	10620	16 procurement of renewable energy credits from distributed
10621	10621	17 renewable energy generation devices. Upon receipt of the
10622	10622	18 notice, the Commission shall enter an order that approves the
10623	10623	19 withdrawal of the proposed procurement of renewable energy
10624	10624	20 resources from the plan. The initially proposed procurement of
10625	10625	21 renewable energy resources shall not be approved or be the
10626	10626	22 subject of any further hearing, investigation, proceeding, or
10627	10627	23 order of any kind.
10628	10628	24 This amendatory Act of the 99th General Assembly preempts
10629	10629	25 and supersedes any order entered by the Commission that
10630	10630	26 approved the Illinois Power Agency's procurement plan for the
10631	10631
10632	10632
10633	10633
10634	10634
10635	10635
10636	10636	SB3949 - 295 - LRB103 40603 LNS 73240 b
10637	10637
10638	10638
10639	10639	SB3949- 296 -LRB103 40603 LNS 73240 b SB3949 - 296 - LRB103 40603 LNS 73240 b
10640	10640	SB3949 - 296 - LRB103 40603 LNS 73240 b
10641	10641	1 period commencing June 1, 2017, to the extent it is
10642	10642	2 inconsistent with the provisions of this amendatory Act of the
10643	10643	3 99th General Assembly. To the extent any previously entered
10644	10644	4 order approved the procurement of renewable energy resources,
10645	10645	5 the portion of that order approving the procurement shall be
10646	10646	6 void, other than the procurement of renewable energy credits
10647	10647	7 from distributed renewable energy generation devices using
10648	10648	8 funds previously collected from electric utilities' retail
10649	10649	9 customers that take service under electric utilities' hourly
10650	10650	10 pricing tariff or tariffs and, for an electric utility that
10651	10651	11 serves less than 100,000 retail customers in the State, other
10652	10652	12 than the procurement of renewable energy credits for
10653	10653	13 distributed renewable energy generation devices.
10654	10654	14 (Source: P.A. 102-662, eff. 9-15-21.)
10655	10655	15 (220 ILCS 5/16-111.11)
10656	10656	16 Sec. 16-111.11. Supplier diversity reporting for
10657	10657	17 non-utilities.
10658	10658	18 (a) The following entities shall submit an annual supplier
10659	10659	19 diversity report to the Commission for a given year:
10660	10660	20 (1) entities that received a contract to provide more
10661	10661	21 than 10,000 renewable energy credits approved by the
10662	10662	22 Commission in a given year pursuant to subparagraph (iii)
10663	10663	23 of paragraph (5) of subsection (b) of Section 16-111.5;
10664	10664	24 (2) entities that received a contract to provide more
10665	10665	25 than 10,000 renewable energy credits approved by the
10666	10666
10667	10667
10668	10668
10669	10669
10670	10670
10671	10671	SB3949 - 296 - LRB103 40603 LNS 73240 b
10672	10672
10673	10673
10674	10674	SB3949- 297 -LRB103 40603 LNS 73240 b SB3949 - 297 - LRB103 40603 LNS 73240 b
10675	10675	SB3949 - 297 - LRB103 40603 LNS 73240 b
10676	10676	1 Commission in a given year pursuant to subsection (e) of
10677	10677	2 Section 16-111.5;
10678	10678	3 (3) alternative retail electric suppliers that have
10679	10679	4 yearly sales in the State of 1,000,000,000 kilowatt hours
10680	10680	5 or more, and alternative gas suppliers as defined in
10681	10681	6 Section 19-105 that have yearly sales in the State of
10682	10682	7 1,000,000 dekatherms or more;
10683	10683	8 (4) entities constructing or operating an HVDC
10684	10684	9 transmission line as defined in Section 1-10 of the
10685	10685	10 Illinois Power Agency Act or entities constructing or
10686	10686	11 operating transmission facilities under a certificate of
10687	10687	12 public convenience and necessity issued pursuant to
10688	10688	13 subsection (b-5) of Section 8-406;
10689	10689	14 (5) entities installing more than 100 energy
10690	10690	15 efficiency measures with a certificate approved by the
10691	10691	16 Commission pursuant to Section 16-128B; and
10692	10692	17 (6) other suppliers of electricity generated from any
10693	10693	18 resource, including, but not limited to, hydro, nuclear,
10694	10694	19 coal, natural gas, and any other supplier of energy within
10695	10695	20 this State.
10696	10696	21 (a-5) An entity that receives a contract to provide high
10697	10697	22 voltage direct current renewable energy credits and the
10698	10698	23 associated high voltage direct current transmission facility
10699	10699	24 is exempt from the obligations of this Section.
10700	10700	25 (b) An annual report filed pursuant to this Section shall
10701	10701	26 be filed on an electronic form as designed by the Commission by
10702	10702
10703	10703
10704	10704
10705	10705
10706	10706
10707	10707	SB3949 - 297 - LRB103 40603 LNS 73240 b
10708	10708
10709	10709
10710	10710	SB3949- 298 -LRB103 40603 LNS 73240 b SB3949 - 298 - LRB103 40603 LNS 73240 b
10711	10711	SB3949 - 298 - LRB103 40603 LNS 73240 b
10712	10712	1 June 1, 2023 and every June 1 thereafter, in a searchable Adobe
10713	10713	2 PDF format, on all procurement goals and actual spending for
10714	10714	3 women-owned businesses, minority-owned businesses,
10715	10715	4 veteran-owned businesses, and small business enterprises in
10716	10716	5 the previous calendar year related to the performance of
10717	10717	6 obligations in the State of the contracts of licenses listed
10718	10718	7 in subsection (a). These goals shall be expressed as a
10719	10719	8 percentage of the total work performed by the entity
10720	10720	9 submitting the report. The actual spending for all women-owned
10721	10721	10 businesses, minority-owned businesses, veteran-owned
10722	10722	11 businesses, and small business enterprises shall also be
10723	10723	12 expressed as a percentage of the total work performed by the
10724	10724	13 entity submitting the report. Notwithstanding any provision of
10725	10725	14 law to the contrary, any entity with obligations related to
10726	10726	15 equity eligible actions pursuant to the Illinois Power Agency
10727	10727	16 Act may express such goals and spending in those terms.
10728	10728	17 Each participating entity in its annual report shall
10729	10729	18 include the following information related to the entity's
10730	10730	19 operations in the State related to the certificates or
10731	10731	20 activities listed in subsection (a):
10732	10732	21 (1) an explanation of the plan for the next year to
10733	10733	22 increase participation;
10734	10734	23 (2) an explanation of the plan to increase the goals;
10735	10735	24 (3) the areas of procurement each entity shall be
10736	10736	25 actively seeking more participation in the next year;
10737	10737	26 (4) an outline of the plan to alert and encourage
10738	10738
10739	10739
10740	10740
10741	10741
10742	10742
10743	10743	SB3949 - 298 - LRB103 40603 LNS 73240 b
10744	10744
10745	10745
10746	10746	SB3949- 299 -LRB103 40603 LNS 73240 b SB3949 - 299 - LRB103 40603 LNS 73240 b
10747	10747	SB3949 - 299 - LRB103 40603 LNS 73240 b
10748	10748	1 potential vendors in that area to seek business from the
10749	10749	2 entity;
10750	10750	3 (5) an explanation of the challenges faced in finding
10751	10751	4 quality vendors and offer any suggestions for what the
10752	10752	5 Commission could do to be helpful to identify those
10753	10753	6 vendors;
10754	10754	7 (6) a list of the certifications the entity
10755	10755	8 recognizes;
10756	10756	9 (7) the point of contact for any potential vendor who
10757	10757	10 wants to do business with the entity and explain the
10758	10758	11 process for a vendor to enroll with the company as a
10759	10759	12 minority-owned, women-owned, or veteran-owned company; and
10760	10760	13 (8) any particular success stories to encourage other
10761	10761	14 entities to emulate best practices.
10762	10762	15 (c) Each annual report shall include as much
10763	10763	16 State-specific data as possible. If the submitting entity does
10764	10764	17 not submit State-specific data, then the entity shall include
10765	10765	18 any national data it does have and explain why it could not
10766	10766	19 submit State-specific data and how it intends to do so in
10767	10767	20 future reports.
10768	10768	21 (d) Each annual report shall include the rules,
10769	10769	22 regulations, and definitions used for the procurement goals in
10770	10770	23 the entity's annual report.
10771	10771	24 (e) Each annual report filed or submitted under this
10772	10772	25 Section shall be submitted with the Commission. The Commission
10773	10773	26 shall not be required or authorized to compel production of
10774	10774
10775	10775
10776	10776
10777	10777
10778	10778
10779	10779	SB3949 - 299 - LRB103 40603 LNS 73240 b
10780	10780
10781	10781
10782	10782	SB3949- 300 -LRB103 40603 LNS 73240 b SB3949 - 300 - LRB103 40603 LNS 73240 b
10783	10783	SB3949 - 300 - LRB103 40603 LNS 73240 b
10784	10784	1 any report under this Section. The Commission shall hold an
10785	10785	2 annual workshop open to the public in 2024 and every year
10786	10786	3 thereafter on the state of supplier diversity to
10787	10787	4 collaboratively seek solutions to structural impediments to
10788	10788	5 achieving stated goals, including testimony from participating
10789	10789	6 entities as well as subject matter experts and advocates in a
10790	10790	7 non-antagonistic manner. The Commission shall invite all
10791	10791	8 entities submitting a report pursuant to this Section. The
10792	10792	9 Commission shall publish a database on its website of the
10793	10793	10 point of contact for each participating entity for supplier
10794	10794	11 diversity, along with a list of certifications each company
10795	10795	12 recognizes from the information submitted in each annual
10796	10796	13 report. The Commission shall publish each annual report on its
10797	10797	14 website and shall maintain each annual report for at least 5
10798	10798	15 years.
10799	10799	16 (Source: P.A. 102-1031, eff. 5-27-22.)
10800	10800	17 Section 25. The Prevailing Wage Act is amended by changing
10801	10801	18 Section 2 as follows:
10802	10802	19 (820 ILCS 130/2)
10803	10803	20 Sec. 2. This Act applies to the wages of laborers,
10804	10804	21 mechanics and other workers employed in any public works, as
10805	10805	22 hereinafter defined, by any public body and to anyone under
10806	10806	23 contracts for public works. This includes any maintenance,
10807	10807	24 repair, assembly, or disassembly work performed on equipment
10808	10808
10809	10809
10810	10810
10811	10811
10812	10812
10813	10813	SB3949 - 300 - LRB103 40603 LNS 73240 b
10814	10814
10815	10815
10816	10816	SB3949- 301 -LRB103 40603 LNS 73240 b SB3949 - 301 - LRB103 40603 LNS 73240 b
10817	10817	SB3949 - 301 - LRB103 40603 LNS 73240 b
10818	10818	1 whether owned, leased, or rented.
10819	10819	2 As used in this Act, unless the context indicates
10820	10820	3 otherwise:
10821	10821	4 "Public works" means all fixed works constructed or
10822	10822	5 demolished by any public body, or paid for wholly or in part
10823	10823	6 out of public funds. "Public works" as defined herein includes
10824	10824	7 all projects financed in whole or in part with bonds, grants,
10825	10825	8 loans, or other funds made available by or through the State or
10826	10826	9 any of its political subdivisions, including but not limited
10827	10827	10 to: bonds issued under the Industrial Project Revenue Bond Act
10828	10828	11 (Article 11, Division 74 of the Illinois Municipal Code), the
10829	10829	12 Industrial Building Revenue Bond Act, the Illinois Finance
10830	10830	13 Authority Act, the Illinois Sports Facilities Authority Act,
10831	10831	14 or the Build Illinois Bond Act; loans or other funds made
10832	10832	15 available pursuant to the Build Illinois Act; loans or other
10833	10833	16 funds made available pursuant to the Riverfront Development
10834	10834	17 Fund under Section 10-15 of the River Edge Redevelopment Zone
10835	10835	18 Act; or funds from the Fund for Illinois' Future under Section
10836	10836	19 6z-47 of the State Finance Act, funds for school construction
10837	10837	20 under Section 5 of the General Obligation Bond Act, funds
10838	10838	21 authorized under Section 3 of the School Construction Bond
10839	10839	22 Act, funds for school infrastructure under Section 6z-45 of
10840	10840	23 the State Finance Act, and funds for transportation purposes
10841	10841	24 under Section 4 of the General Obligation Bond Act. "Public
10842	10842	25 works" also includes (i) all projects financed in whole or in
10843	10843	26 part with funds from the Environmental Protection Agency under
10844	10844
10845	10845
10846	10846
10847	10847
10848	10848
10849	10849	SB3949 - 301 - LRB103 40603 LNS 73240 b
10850	10850
10851	10851
10852	10852	SB3949- 302 -LRB103 40603 LNS 73240 b SB3949 - 302 - LRB103 40603 LNS 73240 b
10853	10853	SB3949 - 302 - LRB103 40603 LNS 73240 b
10854	10854	1 the Illinois Renewable Fuels Development Program Act for which
10855	10855	2 there is no project labor agreement; (ii) all work performed
10856	10856	3 pursuant to a public private agreement under the Public
10857	10857	4 Private Agreements for the Illiana Expressway Act or the
10858	10858	5 Public-Private Agreements for the South Suburban Airport Act;
10859	10859	6 (iii) all projects undertaken under a public-private agreement
10860	10860	7 under the Public-Private Partnerships for Transportation Act
10861	10861	8 or the Department of Natural Resources World Shooting and
10862	10862	9 Recreational Complex Act; and (iv) all transportation
10863	10863	10 facilities undertaken under a design-build contract or a
10864	10864	11 Construction Manager/General Contractor contract under the
10865	10865	12 Innovations for Transportation Infrastructure Act. "Public
10866	10866	13 works" also includes all projects at leased facility property
10867	10867	14 used for airport purposes under Section 35 of the Local
10868	10868	15 Government Facility Lease Act. "Public works" also includes
10869	10869	16 the construction of a new wind power facility by a business
10870	10870	17 designated as a High Impact Business under Section
10871	10871	18 5.5(a)(3)(E), and the construction of a new utility-scale
10872	10872	19 solar power facility by a business designated as a High Impact
10873	10873	20 Business under Section 5.5(a)(3)(E-5), and the construction of
10874	10874	21 a new high voltage direct current converter station by a
10875	10875	22 business designated as a High Impact Business under Section
10876	10876	23 5.5(a)(3)(I) of the Illinois Enterprise Zone Act. "Public
10877	10877	24 works" also includes electric vehicle charging station
10878	10878	25 projects financed pursuant to the Electric Vehicle Act and
10879	10879	26 renewable energy projects required to pay the prevailing wage
10880	10880
10881	10881
10882	10882
10883	10883
10884	10884
10885	10885	SB3949 - 302 - LRB103 40603 LNS 73240 b
10886	10886
10887	10887
10888	10888	SB3949- 303 -LRB103 40603 LNS 73240 b SB3949 - 303 - LRB103 40603 LNS 73240 b
10889	10889	SB3949 - 303 - LRB103 40603 LNS 73240 b
10890	10890	1 pursuant to the Illinois Power Agency Act. "Public works" also
10891	10891	2 includes power washing projects by a public body or paid for
10892	10892	3 wholly or in part out of public funds in which steam or
10893	10893	4 pressurized water, with or without added abrasives or
10894	10894	5 chemicals, is used to remove paint or other coatings, oils or
10895	10895	6 grease, corrosion, or debris from a surface or to prepare a
10896	10896	7 surface for a coating. "Public works" does not include work
10897	10897	8 done directly by any public utility company, whether or not
10898	10898	9 done under public supervision or direction, or paid for wholly
10899	10899	10 or in part out of public funds. "Public works" also includes
10900	10900	11 construction projects performed by a third party contracted by
10901	10901	12 any public utility, as described in subsection (a) of Section
10902	10902	13 2.1, in public rights-of-way, as defined in Section 21-201 of
10903	10903	14 the Public Utilities Act, whether or not done under public
10904	10904	15 supervision or direction, or paid for wholly or in part out of
10905	10905	16 public funds. "Public works" also includes construction
10906	10906	17 projects that exceed 15 aggregate miles of new fiber optic
10907	10907	18 cable, performed by a third party contracted by any public
10908	10908	19 utility, as described in subsection (b) of Section 2.1, in
10909	10909	20 public rights-of-way, as defined in Section 21-201 of the
10910	10910	21 Public Utilities Act, whether or not done under public
10911	10911	22 supervision or direction, or paid for wholly or in part out of
10912	10912	23 public funds. "Public works" also includes any corrective
10913	10913	24 action performed pursuant to Title XVI of the Environmental
10914	10914	25 Protection Act for which payment from the Underground Storage
10915	10915	26 Tank Fund is requested. "Public works" also includes all
10916	10916
10917	10917
10918	10918
10919	10919
10920	10920
10921	10921	SB3949 - 303 - LRB103 40603 LNS 73240 b
10922	10922
10923	10923
10924	10924	SB3949- 304 -LRB103 40603 LNS 73240 b SB3949 - 304 - LRB103 40603 LNS 73240 b
10925	10925	SB3949 - 304 - LRB103 40603 LNS 73240 b
10926	10926	1 construction projects involving fixtures or permanent
10927	10927	2 attachments affixed to light poles that are owned by a public
10928	10928	3 body, including street light poles, traffic light poles, and
10929	10929	4 other lighting fixtures, whether or not done under public
10930	10930	5 supervision or direction, or paid for wholly or in part out of
10931	10931	6 public funds, unless the project is performed by employees
10932	10932	7 employed directly by the public body. "Public works" also
10933	10933	8 includes work performed subject to the Mechanical Insulation
10934	10934	9 Energy and Safety Assessment Act. "Public works" also includes
10935	10935	10 the removal, hauling, and transportation of biosolids, lime
10936	10936	11 sludge, and lime residue from a water treatment plant or
10937	10937	12 facility and the disposal of biosolids, lime sludge, and lime
10938	10938	13 residue removed from a water treatment plant or facility at a
10939	10939	14 landfill. "Public works" does not include projects undertaken
10940	10940	15 by the owner at an owner-occupied single-family residence or
10941	10941	16 at an owner-occupied unit of a multi-family residence. "Public
10942	10942	17 works" does not include work performed for soil and water
10943	10943	18 conservation purposes on agricultural lands, whether or not
10944	10944	19 done under public supervision or paid for wholly or in part out
10945	10945	20 of public funds, done directly by an owner or person who has
10946	10946	21 legal control of those lands.
10947	10947	22 "Construction" means all work on public works involving
10948	10948	23 laborers, workers or mechanics. This includes any maintenance,
10949	10949	24 repair, assembly, or disassembly work performed on equipment
10950	10950	25 whether owned, leased, or rented.
10951	10951	26 "Locality" means the county where the physical work upon
10952	10952
10953	10953
10954	10954
10955	10955
10956	10956
10957	10957	SB3949 - 304 - LRB103 40603 LNS 73240 b
10958	10958
10959	10959
10960	10960	SB3949- 305 -LRB103 40603 LNS 73240 b SB3949 - 305 - LRB103 40603 LNS 73240 b
10961	10961	SB3949 - 305 - LRB103 40603 LNS 73240 b
10962	10962	1 public works is performed, except (1) that if there is not
10963	10963	2 available in the county a sufficient number of competent
10964	10964	3 skilled laborers, workers and mechanics to construct the
10965	10965	4 public works efficiently and properly, "locality" includes any
10966	10966	5 other county nearest the one in which the work or construction
10967	10967	6 is to be performed and from which such persons may be obtained
10968	10968	7 in sufficient numbers to perform the work and (2) that, with
10969	10969	8 respect to contracts for highway work with the Department of
10970	10970	9 Transportation of this State, "locality" may at the discretion
10971	10971	10 of the Secretary of the Department of Transportation be
10972	10972	11 construed to include two or more adjacent counties from which
10973	10973	12 workers may be accessible for work on such construction.
10974	10974	13 "Public body" means the State or any officer, board or
10975	10975	14 commission of the State or any political subdivision or
10976	10976	15 department thereof, or any institution supported in whole or
10977	10977	16 in part by public funds, and includes every county, city,
10978	10978	17 town, village, township, school district, irrigation, utility,
10979	10979	18 reclamation improvement or other district and every other
10980	10980	19 political subdivision, district or municipality of the state
10981	10981	20 whether such political subdivision, municipality or district
10982	10982	21 operates under a special charter or not.
10983	10983	22 "Labor organization" means an organization that is the
10984	10984	23 exclusive representative of an employer's employees recognized
10985	10985	24 or certified pursuant to the National Labor Relations Act.
10986	10986	25 The terms "general prevailing rate of hourly wages",
10987	10987	26 "general prevailing rate of wages" or "prevailing rate of
10988	10988
10989	10989
10990	10990
10991	10991
10992	10992
10993	10993	SB3949 - 305 - LRB103 40603 LNS 73240 b
10994	10994
10995	10995
10996	10996	SB3949- 306 -LRB103 40603 LNS 73240 b SB3949 - 306 - LRB103 40603 LNS 73240 b
10997	10997	SB3949 - 306 - LRB103 40603 LNS 73240 b
10998	10998	1 wages" when used in this Act mean the hourly cash wages plus
10999	10999	2 annualized fringe benefits for training and apprenticeship
11000	11000	3 programs approved by the U.S. Department of Labor, Bureau of
11001	11001	4 Apprenticeship and Training, health and welfare, insurance,
11002	11002	5 vacations and pensions paid generally, in the locality in
11003	11003	6 which the work is being performed, to employees engaged in
11004	11004	7 work of a similar character on public works.
11005	11005	8 (Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
11006	11006	9 102-673, eff. 11-30-21; 102-813, eff. 5-13-22; 102-1094, eff.
11007	11007	10 6-15-22; 103-8, eff. 6-7-23; 103-327, eff. 1-1-24; 103-346,
11008	11008	11 eff. 1-1-24; 103-359, eff. 7-28-23; 103-447, eff. 8-4-23;
11009	11009	12 revised 12-15-23.)
11010	11010	13 Section 99. Effective date. This Act takes effect upon
11011	11011	14 becoming law.
11012	11012	SB3949- 307 -LRB103 40603 LNS 73240 b 1 INDEX 2 Statutes amended in order of appearance SB3949- 307 -LRB103 40603 LNS 73240 b SB3949 - 307 - LRB103 40603 LNS 73240 b 1 INDEX 2 Statutes amended in order of appearance
11013	11013	SB3949- 307 -LRB103 40603 LNS 73240 b SB3949 - 307 - LRB103 40603 LNS 73240 b
11014	11014	SB3949 - 307 - LRB103 40603 LNS 73240 b
11015	11015	1 INDEX
11016	11016	2 Statutes amended in order of appearance
11017	11017
11018	11018
11019	11019
11020	11020
11021	11021
11022	11022	SB3949 - 306 - LRB103 40603 LNS 73240 b
11023	11023
11024	11024
11025	11025
11026	11026	SB3949- 307 -LRB103 40603 LNS 73240 b SB3949 - 307 - LRB103 40603 LNS 73240 b
11027	11027	SB3949 - 307 - LRB103 40603 LNS 73240 b
11028	11028	1 INDEX
11029	11029	2 Statutes amended in order of appearance
11030	11030
11031	11031
11032	11032
11033	11033
11034	11034
11035	11035	SB3949 - 307 - LRB103 40603 LNS 73240 b