Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3997 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 SB3997 Introduced 1/3/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Enterprise Zone Act. Provides that a business that intends to construct a new battery energy storage solution facility or a new high voltage direct current converter station at a designated location in Illinois may be designated as a High Impact Business. Defines "new battery energy storage solution facility" and "high voltage direct current converter station". Amends the Illinois Power Agency Act. Makes changes to the definition of "total resource cost test". In a provision concerning the Illinois Solar for All Program, directs the area median income to be revised every year (rather than every 5 years) for purposes of identifying households that qualify as low-income households. Requires the Agency's Planning and Procurement Bureau to develop plans and processes for the procurement of energy storage. Authorizes the procurement of renewable energy credits that are delivered from repowered wind projects and retooled hydropower facilities to be included in the long-term renewable resources procurement plan developed by the Agency. Authorizes the Agency to propose adjustments to the percentages of renewable energy credits procured from different sources and to consider and propose various approaches, in addition to competitive procurements, to procure renewable energy credits from repowered wind projects. Sets out additional requirements for the energy storage procurement plan to be developed by the Agency. Amends the Public Utilities Act. Makes changes in provisions concerning energy efficiency and demand-response measures and distributed generation rebates. In a provision concerning distributed generation rebates, makes changes concerning inverters. Amends the Prevailing Wage Act. Provides that the term "public works" includes the construction of a new battery energy storage solution facility or a high voltage direct current converter station by a business designated as a High Impact Business under the Illinois Enterprise Zone Act. Makes technical changes. Effective immediately. LRB103 43686 LNS 77044 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3997 Introduced 1/3/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Enterprise Zone Act. Provides that a business that intends to construct a new battery energy storage solution facility or a new high voltage direct current converter station at a designated location in Illinois may be designated as a High Impact Business. Defines "new battery energy storage solution facility" and "high voltage direct current converter station". Amends the Illinois Power Agency Act. Makes changes to the definition of "total resource cost test". In a provision concerning the Illinois Solar for All Program, directs the area median income to be revised every year (rather than every 5 years) for purposes of identifying households that qualify as low-income households. Requires the Agency's Planning and Procurement Bureau to develop plans and processes for the procurement of energy storage. Authorizes the procurement of renewable energy credits that are delivered from repowered wind projects and retooled hydropower facilities to be included in the long-term renewable resources procurement plan developed by the Agency. Authorizes the Agency to propose adjustments to the percentages of renewable energy credits procured from different sources and to consider and propose various approaches, in addition to competitive procurements, to procure renewable energy credits from repowered wind projects. Sets out additional requirements for the energy storage procurement plan to be developed by the Agency. Amends the Public Utilities Act. Makes changes in provisions concerning energy efficiency and demand-response measures and distributed generation rebates. In a provision concerning distributed generation rebates, makes changes concerning inverters. Amends the Prevailing Wage Act. Provides that the term "public works" includes the construction of a new battery energy storage solution facility or a high voltage direct current converter station by a business designated as a High Impact Business under the Illinois Enterprise Zone Act. Makes technical changes. Effective immediately. LRB103 43686 LNS 77044 b LRB103 43686 LNS 77044 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3997 Introduced 1/3/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Illinois Enterprise Zone Act. Provides that a business that intends to construct a new battery energy storage solution facility or a new high voltage direct current converter station at a designated location in Illinois may be designated as a High Impact Business. Defines "new battery energy storage solution facility" and "high voltage direct current converter station". Amends the Illinois Power Agency Act. Makes changes to the definition of "total resource cost test". In a provision concerning the Illinois Solar for All Program, directs the area median income to be revised every year (rather than every 5 years) for purposes of identifying households that qualify as low-income households. Requires the Agency's Planning and Procurement Bureau to develop plans and processes for the procurement of energy storage. Authorizes the procurement of renewable energy credits that are delivered from repowered wind projects and retooled hydropower facilities to be included in the long-term renewable resources procurement plan developed by the Agency. Authorizes the Agency to propose adjustments to the percentages of renewable energy credits procured from different sources and to consider and propose various approaches, in addition to competitive procurements, to procure renewable energy credits from repowered wind projects. Sets out additional requirements for the energy storage procurement plan to be developed by the Agency. Amends the Public Utilities Act. Makes changes in provisions concerning energy efficiency and demand-response measures and distributed generation rebates. In a provision concerning distributed generation rebates, makes changes concerning inverters. Amends the Prevailing Wage Act. Provides that the term "public works" includes the construction of a new battery energy storage solution facility or a high voltage direct current converter station by a business designated as a High Impact Business under the Illinois Enterprise Zone Act. Makes technical changes. Effective immediately.
6	6	LRB103 43686 LNS 77044 b LRB103 43686 LNS 77044 b
7	7	LRB103 43686 LNS 77044 b
8	8	A BILL FOR
9	9	SB3997LRB103 43686 LNS 77044 b SB3997 LRB103 43686 LNS 77044 b
10	10	SB3997 LRB103 43686 LNS 77044 b
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 5. The Illinois Enterprise Zone Act is amended by
15	15	5 changing Section 5.5 as follows:
16	16	6 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
17	17	7 Sec. 5.5. High Impact Business.
18	18	8 (a) In order to respond to unique opportunities to assist
19	19	9 in the encouragement, development, growth, and expansion of
20	20	10 the private sector through large scale investment and
21	21	11 development projects, the Department is authorized to receive
22	22	12 and approve applications for the designation of "High Impact
23	23	13 Businesses" in Illinois, for an initial term of 20 years with
24	24	14 an option for renewal for a term not to exceed 20 years,
25	25	15 subject to the following conditions:
26	26	16 (1) such applications may be submitted at any time
27	27	17 during the year;
28	28	18 (2) such business is not located, at the time of
29	29	19 designation, in an enterprise zone designated pursuant to
30	30	20 this Act, except for grocery stores, as defined in the
31	31	21 Grocery Initiative Act, and a new battery energy storage
32	32	22 solution facility, as defined by subparagraph (I) of
33	33	23 paragraph (3) of this subsection (a);
34	34
35	35
36	36
37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3997 Introduced 1/3/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Illinois Enterprise Zone Act. Provides that a business that intends to construct a new battery energy storage solution facility or a new high voltage direct current converter station at a designated location in Illinois may be designated as a High Impact Business. Defines "new battery energy storage solution facility" and "high voltage direct current converter station". Amends the Illinois Power Agency Act. Makes changes to the definition of "total resource cost test". In a provision concerning the Illinois Solar for All Program, directs the area median income to be revised every year (rather than every 5 years) for purposes of identifying households that qualify as low-income households. Requires the Agency's Planning and Procurement Bureau to develop plans and processes for the procurement of energy storage. Authorizes the procurement of renewable energy credits that are delivered from repowered wind projects and retooled hydropower facilities to be included in the long-term renewable resources procurement plan developed by the Agency. Authorizes the Agency to propose adjustments to the percentages of renewable energy credits procured from different sources and to consider and propose various approaches, in addition to competitive procurements, to procure renewable energy credits from repowered wind projects. Sets out additional requirements for the energy storage procurement plan to be developed by the Agency. Amends the Public Utilities Act. Makes changes in provisions concerning energy efficiency and demand-response measures and distributed generation rebates. In a provision concerning distributed generation rebates, makes changes concerning inverters. Amends the Prevailing Wage Act. Provides that the term "public works" includes the construction of a new battery energy storage solution facility or a high voltage direct current converter station by a business designated as a High Impact Business under the Illinois Enterprise Zone Act. Makes technical changes. Effective immediately.
41	41	LRB103 43686 LNS 77044 b LRB103 43686 LNS 77044 b
42	42	LRB103 43686 LNS 77044 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	See Index
50	50
51	51
52	52
53	53	LRB103 43686 LNS 77044 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	SB3997 LRB103 43686 LNS 77044 b
64	64
65	65
66	66	SB3997- 2 -LRB103 43686 LNS 77044 b SB3997 - 2 - LRB103 43686 LNS 77044 b
67	67	SB3997 - 2 - LRB103 43686 LNS 77044 b
68	68	1 (3) the business intends to do, commits to do, or is
69	69	2 one or more of the following:
70	70	3 (A) the business intends to make a minimum
71	71	4 investment of $12,000,000 which will be placed in
72	72	5 service in qualified property and intends to create
73	73	6 500 full-time equivalent jobs at a designated location
74	74	7 in Illinois or intends to make a minimum investment of
75	75	8 $30,000,000 which will be placed in service in
76	76	9 qualified property and intends to retain 1,500
77	77	10 full-time retained jobs at a designated location in
78	78	11 Illinois. The terms "placed in service" and "qualified
79	79	12 property" have the same meanings as described in
80	80	13 subsection (h) of Section 201 of the Illinois Income
81	81	14 Tax Act; or
82	82	15 (B) the business intends to establish a new
83	83	16 electric generating facility at a designated location
84	84	17 in Illinois. "New electric generating facility", for
85	85	18 purposes of this Section, means a newly constructed
86	86	19 electric generation plant or a newly constructed
87	87	20 generation capacity expansion at an existing electric
88	88	21 generation plant, including the transmission lines and
89	89	22 associated equipment that transfers electricity from
90	90	23 points of supply to points of delivery, and for which
91	91	24 such new foundation construction commenced not sooner
92	92	25 than July 1, 2001. Such facility shall be designed to
93	93	26 provide baseload electric generation and shall operate
94	94
95	95
96	96
97	97
98	98
99	99	SB3997 - 2 - LRB103 43686 LNS 77044 b
100	100
101	101
102	102	SB3997- 3 -LRB103 43686 LNS 77044 b SB3997 - 3 - LRB103 43686 LNS 77044 b
103	103	SB3997 - 3 - LRB103 43686 LNS 77044 b
104	104	1 on a continuous basis throughout the year; and (i)
105	105	2 shall have an aggregate rated generating capacity of
106	106	3 at least 1,000 megawatts for all new units at one site
107	107	4 if it uses natural gas as its primary fuel and
108	108	5 foundation construction of the facility is commenced
109	109	6 on or before December 31, 2004, or shall have an
110	110	7 aggregate rated generating capacity of at least 400
111	111	8 megawatts for all new units at one site if it uses coal
112	112	9 or gases derived from coal as its primary fuel and
113	113	10 shall support the creation of at least 150 new
114	114	11 Illinois coal mining jobs, or (ii) shall be funded
115	115	12 through a federal Department of Energy grant before
116	116	13 December 31, 2010 and shall support the creation of
117	117	14 Illinois coal mining jobs, or (iii) shall use coal
118	118	15 gasification or integrated gasification-combined cycle
119	119	16 units that generate electricity or chemicals, or both,
120	120	17 and shall support the creation of Illinois coal mining
121	121	18 jobs. The term "placed in service" has the same
122	122	19 meaning as described in subsection (h) of Section 201
123	123	20 of the Illinois Income Tax Act; or
124	124	21 (B-5) the business intends to establish a new
125	125	22 gasification facility at a designated location in
126	126	23 Illinois. As used in this Section, "new gasification
127	127	24 facility" means a newly constructed coal gasification
128	128	25 facility that generates chemical feedstocks or
129	129	26 transportation fuels derived from coal (which may
130	130
131	131
132	132
133	133
134	134
135	135	SB3997 - 3 - LRB103 43686 LNS 77044 b
136	136
137	137
138	138	SB3997- 4 -LRB103 43686 LNS 77044 b SB3997 - 4 - LRB103 43686 LNS 77044 b
139	139	SB3997 - 4 - LRB103 43686 LNS 77044 b
140	140	1 include, but are not limited to, methane, methanol,
141	141	2 and nitrogen fertilizer), that supports the creation
142	142	3 or retention of Illinois coal mining jobs, and that
143	143	4 qualifies for financial assistance from the Department
144	144	5 before December 31, 2010. A new gasification facility
145	145	6 does not include a pilot project located within
146	146	7 Jefferson County or within a county adjacent to
147	147	8 Jefferson County for synthetic natural gas from coal;
148	148	9 or
149	149	10 (C) the business intends to establish production
150	150	11 operations at a new coal mine, re-establish production
151	151	12 operations at a closed coal mine, or expand production
152	152	13 at an existing coal mine at a designated location in
153	153	14 Illinois not sooner than July 1, 2001; provided that
154	154	15 the production operations result in the creation of
155	155	16 150 new Illinois coal mining jobs as described in
156	156	17 subdivision (a)(3)(B) of this Section, and further
157	157	18 provided that the coal extracted from such mine is
158	158	19 utilized as the predominant source for a new electric
159	159	20 generating facility. The term "placed in service" has
160	160	21 the same meaning as described in subsection (h) of
161	161	22 Section 201 of the Illinois Income Tax Act; or
162	162	23 (D) the business intends to construct new
163	163	24 transmission facilities or upgrade existing
164	164	25 transmission facilities at designated locations in
165	165	26 Illinois, for which construction commenced not sooner
166	166
167	167
168	168
169	169
170	170
171	171	SB3997 - 4 - LRB103 43686 LNS 77044 b
172	172
173	173
174	174	SB3997- 5 -LRB103 43686 LNS 77044 b SB3997 - 5 - LRB103 43686 LNS 77044 b
175	175	SB3997 - 5 - LRB103 43686 LNS 77044 b
176	176	1 than July 1, 2001. For the purposes of this Section,
177	177	2 "transmission facilities" means transmission lines
178	178	3 with a voltage rating of 115 kilovolts or above,
179	179	4 including associated equipment, that transfer
180	180	5 electricity from points of supply to points of
181	181	6 delivery and that transmit a majority of the
182	182	7 electricity generated by a new electric generating
183	183	8 facility designated as a High Impact Business in
184	184	9 accordance with this Section. The term "placed in
185	185	10 service" has the same meaning as described in
186	186	11 subsection (h) of Section 201 of the Illinois Income
187	187	12 Tax Act; or
188	188	13 (E) the business intends to establish a new wind
189	189	14 power facility at a designated location in Illinois.
190	190	15 For purposes of this Section, "new wind power
191	191	16 facility" means a newly constructed electric
192	192	17 generation facility, a newly constructed expansion of
193	193	18 an existing electric generation facility, or the
194	194	19 replacement of an existing electric generation
195	195	20 facility, including the demolition and removal of an
196	196	21 electric generation facility irrespective of whether
197	197	22 it will be replaced, placed in service or replaced on
198	198	23 or after July 1, 2009, that generates electricity
199	199	24 using wind energy devices, and such facility shall be
200	200	25 deemed to include any permanent structures associated
201	201	26 with the electric generation facility and all
202	202
203	203
204	204
205	205
206	206
207	207	SB3997 - 5 - LRB103 43686 LNS 77044 b
208	208
209	209
210	210	SB3997- 6 -LRB103 43686 LNS 77044 b SB3997 - 6 - LRB103 43686 LNS 77044 b
211	211	SB3997 - 6 - LRB103 43686 LNS 77044 b
212	212	1 associated transmission lines, substations, and other
213	213	2 equipment related to the generation of electricity
214	214	3 from wind energy devices. For purposes of this
215	215	4 Section, "wind energy device" means any device, with a
216	216	5 nameplate capacity of at least 0.5 megawatts, that is
217	217	6 used in the process of converting kinetic energy from
218	218	7 the wind to generate electricity; or
219	219	8 (E-5) the business intends to establish a new
220	220	9 utility-scale solar facility at a designated location
221	221	10 in Illinois. For purposes of this Section, "new
222	222	11 utility-scale solar power facility" means a newly
223	223	12 constructed electric generation facility, or a newly
224	224	13 constructed expansion of an existing electric
225	225	14 generation facility, placed in service on or after
226	226	15 July 1, 2021, that (i) generates electricity using
227	227	16 photovoltaic cells and (ii) has a nameplate capacity
228	228	17 that is greater than 5,000 kilowatts, and such
229	229	18 facility shall be deemed to include all associated
230	230	19 transmission lines, substations, energy storage
231	231	20 facilities, and other equipment related to the
232	232	21 generation and storage of electricity from
233	233	22 photovoltaic cells; or
234	234	23 (F) the business commits to (i) make a minimum
235	235	24 investment of $500,000,000, which will be placed in
236	236	25 service in a qualified property, (ii) create 125
237	237	26 full-time equivalent jobs at a designated location in
238	238
239	239
240	240
241	241
242	242
243	243	SB3997 - 6 - LRB103 43686 LNS 77044 b
244	244
245	245
246	246	SB3997- 7 -LRB103 43686 LNS 77044 b SB3997 - 7 - LRB103 43686 LNS 77044 b
247	247	SB3997 - 7 - LRB103 43686 LNS 77044 b
248	248	1 Illinois, (iii) establish a fertilizer plant at a
249	249	2 designated location in Illinois that complies with the
250	250	3 set-back standards as described in Table 1: Initial
251	251	4 Isolation and Protective Action Distances in the 2012
252	252	5 Emergency Response Guidebook published by the United
253	253	6 States Department of Transportation, (iv) pay a
254	254	7 prevailing wage for employees at that location who are
255	255	8 engaged in construction activities, and (v) secure an
256	256	9 appropriate level of general liability insurance to
257	257	10 protect against catastrophic failure of the fertilizer
258	258	11 plant or any of its constituent systems; in addition,
259	259	12 the business must agree to enter into a construction
260	260	13 project labor agreement including provisions
261	261	14 establishing wages, benefits, and other compensation
262	262	15 for employees performing work under the project labor
263	263	16 agreement at that location; for the purposes of this
264	264	17 Section, "fertilizer plant" means a newly constructed
265	265	18 or upgraded plant utilizing gas used in the production
266	266	19 of anhydrous ammonia and downstream nitrogen
267	267	20 fertilizer products for resale; for the purposes of
268	268	21 this Section, "prevailing wage" means the hourly cash
269	269	22 wages plus fringe benefits for training and
270	270	23 apprenticeship programs approved by the U.S.
271	271	24 Department of Labor, Bureau of Apprenticeship and
272	272	25 Training, health and welfare, insurance, vacations and
273	273	26 pensions paid generally, in the locality in which the
274	274
275	275
276	276
277	277
278	278
279	279	SB3997 - 7 - LRB103 43686 LNS 77044 b
280	280
281	281
282	282	SB3997- 8 -LRB103 43686 LNS 77044 b SB3997 - 8 - LRB103 43686 LNS 77044 b
283	283	SB3997 - 8 - LRB103 43686 LNS 77044 b
284	284	1 work is being performed, to employees engaged in work
285	285	2 of a similar character on public works; this paragraph
286	286	3 (F) applies only to businesses that submit an
287	287	4 application to the Department within 60 days after
288	288	5 July 25, 2013 (the effective date of Public Act
289	289	6 98-109); or
290	290	7 (G) the business intends to establish a new
291	291	8 cultured cell material food production facility at a
292	292	9 designated location in Illinois. As used in this
293	293	10 paragraph (G):
294	294	11 "Cultured cell material food production facility"
295	295	12 means a facility (i) at which cultured animal cell
296	296	13 food is developed using animal cell culture
297	297	14 technology, (ii) at which production processes occur
298	298	15 that include the establishment of cell lines and cell
299	299	16 banks, manufacturing controls, and all components and
300	300	17 inputs, and (iii) that complies with all existing
301	301	18 registrations, inspections, licensing, and approvals
302	302	19 from all applicable and participating State and
303	303	20 federal food agencies, including the Department of
304	304	21 Agriculture, the Department of Public Health, and the
305	305	22 United States Food and Drug Administration, to ensure
306	306	23 that all food production is safe and lawful under
307	307	24 provisions of the Federal Food, Drug and Cosmetic Act
308	308	25 related to the development, production, and storage of
309	309	26 cultured animal cell food.
310	310
311	311
312	312
313	313
314	314
315	315	SB3997 - 8 - LRB103 43686 LNS 77044 b
316	316
317	317
318	318	SB3997- 9 -LRB103 43686 LNS 77044 b SB3997 - 9 - LRB103 43686 LNS 77044 b
319	319	SB3997 - 9 - LRB103 43686 LNS 77044 b
320	320	1 "New cultured cell material food production
321	321	2 facility" means a newly constructed cultured cell
322	322	3 material food production facility that is placed in
323	323	4 service on or after June 7, 2023 (the effective date of
324	324	5 Public Act 103-9) or a newly constructed expansion of
325	325	6 an existing cultured cell material food production
326	326	7 facility, in a controlled environment, when the
327	327	8 improvements are placed in service on or after June 7,
328	328	9 2023 (the effective date of Public Act 103-9); or
329	329	10 (H) the business is an existing or planned grocery
330	330	11 store, as that term is defined in Section 5 of the
331	331	12 Grocery Initiative Act, and receives financial support
332	332	13 under that Act within the 10 years before submitting
333	333	14 its application under this Act; or and
334	334	15 (I) the business intends to establish a new
335	335	16 battery energy storage solution facility at a
336	336	17 designated location in Illinois. As used in this
337	337	18 paragraph (I):
338	338	19 "New battery energy storage solution facility"
339	339	20 means a newly constructed battery energy storage
340	340	21 facility, a newly constructed expansion of an existing
341	341	22 battery energy storage facility, or the replacement of
342	342	23 an existing battery energy storage facility that
343	343	24 stores electricity using battery devices and other
344	344	25 means. "New battery energy storage solution facility"
345	345	26 includes any permanent structures associated with the
346	346
347	347
348	348
349	349
350	350
351	351	SB3997 - 9 - LRB103 43686 LNS 77044 b
352	352
353	353
354	354	SB3997- 10 -LRB103 43686 LNS 77044 b SB3997 - 10 - LRB103 43686 LNS 77044 b
355	355	SB3997 - 10 - LRB103 43686 LNS 77044 b
356	356	1 new battery energy storage facility and all associated
357	357	2 transmission lines, substations, and other equipment
358	358	3 that is related to the storage and transmission of
359	359	4 electric power and that has a capacity of not less than
360	360	5 100 megawatt and storage capability of not less than
361	361	6 200 megawatt hours of energy; or
362	362	7 (J) the business intends to construct a new high
363	363	8 voltage direct current converter station at a
364	364	9 designated location in Illinois. As used in this
365	365	10 paragraph, "high voltage direct current converter
366	366	11 station" has the same meaning given to that term in
367	367	12 Section 1-10 of the Illinois Power Act; and
368	368	13 (4) no later than 90 days after an application is
369	369	14 submitted, the Department shall notify the applicant of
370	370	15 the Department's determination of the qualification of the
371	371	16 proposed High Impact Business under this Section.
372	372	17 (b) Businesses designated as High Impact Businesses
373	373	18 pursuant to subdivision (a)(3)(A) of this Section shall
374	374	19 qualify for the credits and exemptions described in the
375	375	20 following Acts: Section 9-222 and Section 9-222.1A of the
376	376	21 Public Utilities Act, subsection (h) of Section 201 of the
377	377	22 Illinois Income Tax Act, and Section 1d of the Retailers'
378	378	23 Occupation Tax Act; provided that these credits and exemptions
379	379	24 described in these Acts shall not be authorized until the
380	380	25 minimum investments set forth in subdivision (a)(3)(A) of this
381	381	26 Section have been placed in service in qualified properties
382	382
383	383
384	384
385	385
386	386
387	387	SB3997 - 10 - LRB103 43686 LNS 77044 b
388	388
389	389
390	390	SB3997- 11 -LRB103 43686 LNS 77044 b SB3997 - 11 - LRB103 43686 LNS 77044 b
391	391	SB3997 - 11 - LRB103 43686 LNS 77044 b
392	392	1 and, in the case of the exemptions described in the Public
393	393	2 Utilities Act and Section 1d of the Retailers' Occupation Tax
394	394	3 Act, the minimum full-time equivalent jobs or full-time
395	395	4 retained jobs set forth in subdivision (a)(3)(A) of this
396	396	5 Section have been created or retained. Businesses designated
397	397	6 as High Impact Businesses under this Section shall also
398	398	7 qualify for the exemption described in Section 5l of the
399	399	8 Retailers' Occupation Tax Act. The credit provided in
400	400	9 subsection (h) of Section 201 of the Illinois Income Tax Act
401	401	10 shall be applicable to investments in qualified property as
402	402	11 set forth in subdivision (a)(3)(A) of this Section.
403	403	12 (b-5) Businesses designated as High Impact Businesses
404	404	13 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
405	405	14 (a)(3)(D), (a)(3)(G), and (a)(3)(H) of this Section shall
406	406	15 qualify for the credits and exemptions described in the
407	407	16 following Acts: Section 51 of the Retailers' Occupation Tax
408	408	17 Act, Section 9-222 and Section 9-222.1A of the Public
409	409	18 Utilities Act, and subsection (h) of Section 201 of the
410	410	19 Illinois Income Tax Act; however, the credits and exemptions
411	411	20 authorized under Section 9-222 and Section 9-222.1A of the
412	412	21 Public Utilities Act, and subsection (h) of Section 201 of the
413	413	22 Illinois Income Tax Act shall not be authorized until the new
414	414	23 electric generating facility, the new gasification facility,
415	415	24 the new transmission facility, the new, expanded, or reopened
416	416	25 coal mine, the new cultured cell material food production
417	417	26 facility, or the existing or planned grocery store is
418	418
419	419
420	420
421	421
422	422
423	423	SB3997 - 11 - LRB103 43686 LNS 77044 b
424	424
425	425
426	426	SB3997- 12 -LRB103 43686 LNS 77044 b SB3997 - 12 - LRB103 43686 LNS 77044 b
427	427	SB3997 - 12 - LRB103 43686 LNS 77044 b
428	428	1 operational, except that a new electric generating facility
429	429	2 whose primary fuel source is natural gas is eligible only for
430	430	3 the exemption under Section 5l of the Retailers' Occupation
431	431	4 Tax Act.
432	432	5 (b-6) Businesses designated as High Impact Businesses
433	433	6 pursuant to subdivision (a)(3)(E), or (a)(3)(E-5), (A)(3)(I),
434	434	7 or (a)(3)(J) of this Section shall qualify for the exemptions
435	435	8 described in Section 5l of the Retailers' Occupation Tax Act;
436	436	9 any business so designated as a High Impact Business being,
437	437	10 for purposes of this Section, a "Wind Energy Business".
438	438	11 (b-7) Beginning on January 1, 2021, businesses designated
439	439	12 as High Impact Businesses by the Department shall qualify for
440	440	13 the High Impact Business construction jobs credit under
441	441	14 subsection (h-5) of Section 201 of the Illinois Income Tax Act
442	442	15 if the business meets the criteria set forth in subsection (i)
443	443	16 of this Section. The total aggregate amount of credits awarded
444	444	17 under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
445	445	18 shall not exceed $20,000,000 in any State fiscal year.
446	446	19 (c) High Impact Businesses located in federally designated
447	447	20 foreign trade zones or sub-zones are also eligible for
448	448	21 additional credits, exemptions and deductions as described in
449	449	22 the following Acts: Section 9-221 and Section 9-222.1 of the
450	450	23 Public Utilities Act; and subsection (g) of Section 201, and
451	451	24 Section 203 of the Illinois Income Tax Act.
452	452	25 (d) Except for businesses contemplated under subdivision
453	453	26 (a)(3)(E), (a)(3)(E-5), (a)(3)(G), or (a)(3)(H), (A)(3)(I), or
454	454
455	455
456	456
457	457
458	458
459	459	SB3997 - 12 - LRB103 43686 LNS 77044 b
460	460
461	461
462	462	SB3997- 13 -LRB103 43686 LNS 77044 b SB3997 - 13 - LRB103 43686 LNS 77044 b
463	463	SB3997 - 13 - LRB103 43686 LNS 77044 b
464	464	1 (a)(3)(J) of this Section, existing Illinois businesses which
465	465	2 apply for designation as a High Impact Business must provide
466	466	3 the Department with the prospective plan for which 1,500
467	467	4 full-time retained jobs would be eliminated in the event that
468	468	5 the business is not designated.
469	469	6 (e) Except for new businesses contemplated under
470	470	7 subdivision (a)(3)(E), subdivision (a)(3)(G), or subdivision
471	471	8 (a)(3)(H), or subdivision (a)(3)(J) of this Section, new
472	472	9 proposed facilities which apply for designation as High Impact
473	473	10 Business must provide the Department with proof of alternative
474	474	11 non-Illinois sites which would receive the proposed investment
475	475	12 and job creation in the event that the business is not
476	476	13 designated as a High Impact Business.
477	477	14 (f) Except for businesses contemplated under subdivision
478	478	15 (a)(3)(E), subdivision (a)(3)(G), or subdivision (a)(3)(H), or
479	479	16 subdivision (a)(3)(J) of this Section, in the event that a
480	480	17 business is designated a High Impact Business and it is later
481	481	18 determined after reasonable notice and an opportunity for a
482	482	19 hearing as provided under the Illinois Administrative
483	483	20 Procedure Act, that the business would have placed in service
484	484	21 in qualified property the investments and created or retained
485	485	22 the requisite number of jobs without the benefits of the High
486	486	23 Impact Business designation, the Department shall be required
487	487	24 to immediately revoke the designation and notify the Director
488	488	25 of the Department of Revenue who shall begin proceedings to
489	489	26 recover all wrongfully exempted State taxes with interest. The
490	490
491	491
492	492
493	493
494	494
495	495	SB3997 - 13 - LRB103 43686 LNS 77044 b
496	496
497	497
498	498	SB3997- 14 -LRB103 43686 LNS 77044 b SB3997 - 14 - LRB103 43686 LNS 77044 b
499	499	SB3997 - 14 - LRB103 43686 LNS 77044 b
500	500	1 business shall also be ineligible for all State funded
501	501	2 Department programs for a period of 10 years.
502	502	3 (g) The Department shall revoke a High Impact Business
503	503	4 designation if the participating business fails to comply with
504	504	5 the terms and conditions of the designation.
505	505	6 (h) Prior to designating a business, the Department shall
506	506	7 provide the members of the General Assembly and Commission on
507	507	8 Government Forecasting and Accountability with a report
508	508	9 setting forth the terms and conditions of the designation and
509	509	10 guarantees that have been received by the Department in
510	510	11 relation to the proposed business being designated.
511	511	12 (i) High Impact Business construction jobs credit.
512	512	13 Beginning on January 1, 2021, a High Impact Business may
513	513	14 receive a tax credit against the tax imposed under subsections
514	514	15 (a) and (b) of Section 201 of the Illinois Income Tax Act in an
515	515	16 amount equal to 50% of the amount of the incremental income tax
516	516	17 attributable to High Impact Business construction jobs credit
517	517	18 employees employed in the course of completing a High Impact
518	518	19 Business construction jobs project. However, the High Impact
519	519	20 Business construction jobs credit may equal 75% of the amount
520	520	21 of the incremental income tax attributable to High Impact
521	521	22 Business construction jobs credit employees if the High Impact
522	522	23 Business construction jobs credit project is located in an
523	523	24 underserved area.
524	524	25 The Department shall certify to the Department of Revenue:
525	525	26 (1) the identity of taxpayers that are eligible for the High
526	526
527	527
528	528
529	529
530	530
531	531	SB3997 - 14 - LRB103 43686 LNS 77044 b
532	532
533	533
534	534	SB3997- 15 -LRB103 43686 LNS 77044 b SB3997 - 15 - LRB103 43686 LNS 77044 b
535	535	SB3997 - 15 - LRB103 43686 LNS 77044 b
536	536	1 Impact Business construction jobs credit; and (2) the amount
537	537	2 of High Impact Business construction jobs credits that are
538	538	3 claimed pursuant to subsection (h-5) of Section 201 of the
539	539	4 Illinois Income Tax Act in each taxable year.
540	540	5 As used in this subsection (i):
541	541	6 "High Impact Business construction jobs credit" means an
542	542	7 amount equal to 50% (or 75% if the High Impact Business
543	543	8 construction project is located in an underserved area) of the
544	544	9 incremental income tax attributable to High Impact Business
545	545	10 construction job employees. The total aggregate amount of
546	546	11 credits awarded under the Blue Collar Jobs Act (Article 20 of
547	547	12 Public Act 101-9) shall not exceed $20,000,000 in any State
548	548	13 fiscal year
549	549	14 "High Impact Business construction job employee" means a
550	550	15 laborer or worker who is employed by a contractor or
551	551	16 subcontractor in the actual construction work on the site of a
552	552	17 High Impact Business construction job project.
553	553	18 "High Impact Business construction jobs project" means
554	554	19 building a structure or building or making improvements of any
555	555	20 kind to real property, undertaken and commissioned by a
556	556	21 business that was designated as a High Impact Business by the
557	557	22 Department. The term "High Impact Business construction jobs
558	558	23 project" does not include the routine operation, routine
559	559	24 repair, or routine maintenance of existing structures,
560	560	25 buildings, or real property.
561	561	26 "Incremental income tax" means the total amount withheld
562	562
563	563
564	564
565	565
566	566
567	567	SB3997 - 15 - LRB103 43686 LNS 77044 b
568	568
569	569
570	570	SB3997- 16 -LRB103 43686 LNS 77044 b SB3997 - 16 - LRB103 43686 LNS 77044 b
571	571	SB3997 - 16 - LRB103 43686 LNS 77044 b
572	572	1 during the taxable year from the compensation of High Impact
573	573	2 Business construction job employees.
574	574	3 "Underserved area" means a geographic area that meets one
575	575	4 or more of the following conditions:
576	576	5 (1) the area has a poverty rate of at least 20%
577	577	6 according to the latest American Community Survey;
578	578	7 (2) 35% or more of the families with children in the
579	579	8 area are living below 130% of the poverty line, according
580	580	9 to the latest American Community Survey;
581	581	10 (3) at least 20% of the households in the area receive
582	582	11 assistance under the Supplemental Nutrition Assistance
583	583	12 Program (SNAP); or
584	584	13 (4) the area has an average unemployment rate, as
585	585	14 determined by the Illinois Department of Employment
586	586	15 Security, that is more than 120% of the national
587	587	16 unemployment average, as determined by the U.S. Department
588	588	17 of Labor, for a period of at least 2 consecutive calendar
589	589	18 years preceding the date of the application.
590	590	19 (j) (Blank).
591	591	20 (j-5) Annually, until construction is completed, a company
592	592	21 seeking High Impact Business Construction Job credits shall
593	593	22 submit a report that, at a minimum, describes the projected
594	594	23 project scope, timeline, and anticipated budget. Once the
595	595	24 project has commenced, the annual report shall include actual
596	596	25 data for the prior year as well as projections for each
597	597	26 additional year through completion of the project. The
598	598
599	599
600	600
601	601
602	602
603	603	SB3997 - 16 - LRB103 43686 LNS 77044 b
604	604
605	605
606	606	SB3997- 17 -LRB103 43686 LNS 77044 b SB3997 - 17 - LRB103 43686 LNS 77044 b
607	607	SB3997 - 17 - LRB103 43686 LNS 77044 b
608	608	1 Department shall issue detailed reporting guidelines
609	609	2 prescribing the requirements of construction-related reports.
610	610	3 In order to receive credit for construction expenses, the
611	611	4 company must provide the Department with evidence that a
612	612	5 certified third-party executed an Agreed-Upon Procedure (AUP)
613	613	6 verifying the construction expenses or accept the standard
614	614	7 construction wage expense estimated by the Department.
615	615	8 Upon review of the final project scope, timeline, budget,
616	616	9 and AUP, the Department shall issue a tax credit certificate
617	617	10 reflecting a percentage of the total construction job wages
618	618	11 paid throughout the completion of the project.
619	619	12 (k) Upon 7 business days' notice, each taxpayer shall make
620	620	13 available to each State agency and to federal, State, or local
621	621	14 law enforcement agencies and prosecutors for inspection and
622	622	15 copying at a location within this State during reasonable
623	623	16 hours, the report under subsection (j-5).
624	624	17 (l) The changes made to this Section by Public Act
625	625	18 102-1125, other than the changes in subsection (a), apply to
626	626	19 High Impact Businesses that submit applications on or after
627	627	20 February 3, 2023 (the effective date of Public Act 102-1125).
628	628	21 (Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
629	629	22 102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
630	630	23 11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
631	631	24 eff. 6-7-23; 103-561, eff. 1-1-24; 103-595, eff. 6-26-24;
632	632	25 103-605, eff. 7-1-24.)
633	633
634	634
635	635
636	636
637	637
638	638	SB3997 - 17 - LRB103 43686 LNS 77044 b
639	639
640	640
641	641	SB3997- 18 -LRB103 43686 LNS 77044 b SB3997 - 18 - LRB103 43686 LNS 77044 b
642	642	SB3997 - 18 - LRB103 43686 LNS 77044 b
643	643	1 Section 10. The Illinois Power Agency Act is amended by
644	644	2 changing Sections 1-10, 1-56, and 1-75 as follows:
645	645	3 (20 ILCS 3855/1-10)
646	646	4 Sec. 1-10. Definitions.
647	647	5 "Agency" means the Illinois Power Agency.
648	648	6 "Agency loan agreement" means any agreement pursuant to
649	649	7 which the Illinois Finance Authority agrees to loan the
650	650	8 proceeds of revenue bonds issued with respect to a project to
651	651	9 the Agency upon terms providing for loan repayment
652	652	10 installments at least sufficient to pay when due all principal
653	653	11 of, interest and premium, if any, on those revenue bonds, and
654	654	12 providing for maintenance, insurance, and other matters in
655	655	13 respect of the project.
656	656	14 "Authority" means the Illinois Finance Authority.
657	657	15 "Brownfield site photovoltaic project" means photovoltaics
658	658	16 that are either:
659	659	17 (1) interconnected to an electric utility as defined
660	660	18 in this Section, a municipal utility as defined in this
661	661	19 Section, a public utility as defined in Section 3-105 of
662	662	20 the Public Utilities Act, or an electric cooperative as
663	663	21 defined in Section 3-119 of the Public Utilities Act and
664	664	22 located at a site that is regulated by any of the following
665	665	23 entities under the following programs:
666	666	24 (A) the United States Environmental Protection
667	667	25 Agency under the federal Comprehensive Environmental
668	668
669	669
670	670
671	671
672	672
673	673	SB3997 - 18 - LRB103 43686 LNS 77044 b
674	674
675	675
676	676	SB3997- 19 -LRB103 43686 LNS 77044 b SB3997 - 19 - LRB103 43686 LNS 77044 b
677	677	SB3997 - 19 - LRB103 43686 LNS 77044 b
678	678	1 Response, Compensation, and Liability Act of 1980, as
679	679	2 amended;
680	680	3 (B) the United States Environmental Protection
681	681	4 Agency under the Corrective Action Program of the
682	682	5 federal Resource Conservation and Recovery Act, as
683	683	6 amended;
684	684	7 (C) the Illinois Environmental Protection Agency
685	685	8 under the Illinois Site Remediation Program; or
686	686	9 (D) the Illinois Environmental Protection Agency
687	687	10 under the Illinois Solid Waste Program; or
688	688	11 (2) located at the site of a coal mine that has
689	689	12 permanently ceased coal production, permanently halted any
690	690	13 re-mining operations, and is no longer accepting any coal
691	691	14 combustion residues; has both completed all clean-up and
692	692	15 remediation obligations under the federal Surface Mining
693	693	16 and Reclamation Act of 1977 and all applicable Illinois
694	694	17 rules and any other clean-up, remediation, or ongoing
695	695	18 monitoring to safeguard the health and well-being of the
696	696	19 people of the State of Illinois, as well as demonstrated
697	697	20 compliance with all applicable federal and State
698	698	21 environmental rules and regulations, including, but not
699	699	22 limited, to 35 Ill. Adm. Code Part 845 and any rules for
700	700	23 historic fill of coal combustion residuals, including any
701	701	24 rules finalized in Subdocket A of Illinois Pollution
702	702	25 Control Board docket R2020-019.
703	703	26 "Clean coal facility" means an electric generating
704	704
705	705
706	706
707	707
708	708
709	709	SB3997 - 19 - LRB103 43686 LNS 77044 b
710	710
711	711
712	712	SB3997- 20 -LRB103 43686 LNS 77044 b SB3997 - 20 - LRB103 43686 LNS 77044 b
713	713	SB3997 - 20 - LRB103 43686 LNS 77044 b
714	714	1 facility that uses primarily coal as a feedstock and that
715	715	2 captures and sequesters carbon dioxide emissions at the
716	716	3 following levels: at least 50% of the total carbon dioxide
717	717	4 emissions that the facility would otherwise emit if, at the
718	718	5 time construction commences, the facility is scheduled to
719	719	6 commence operation before 2016, at least 70% of the total
720	720	7 carbon dioxide emissions that the facility would otherwise
721	721	8 emit if, at the time construction commences, the facility is
722	722	9 scheduled to commence operation during 2016 or 2017, and at
723	723	10 least 90% of the total carbon dioxide emissions that the
724	724	11 facility would otherwise emit if, at the time construction
725	725	12 commences, the facility is scheduled to commence operation
726	726	13 after 2017. The power block of the clean coal facility shall
727	727	14 not exceed allowable emission rates for sulfur dioxide,
728	728	15 nitrogen oxides, carbon monoxide, particulates and mercury for
729	729	16 a natural gas-fired combined-cycle facility the same size as
730	730	17 and in the same location as the clean coal facility at the time
731	731	18 the clean coal facility obtains an approved air permit. All
732	732	19 coal used by a clean coal facility shall have high volatile
733	733	20 bituminous rank and greater than 1.7 pounds of sulfur per
734	734	21 million Btu content, unless the clean coal facility does not
735	735	22 use gasification technology and was operating as a
736	736	23 conventional coal-fired electric generating facility on June
737	737	24 1, 2009 (the effective date of Public Act 95-1027).
738	738	25 "Clean coal SNG brownfield facility" means a facility that
739	739	26 (1) has commenced construction by July 1, 2015 on an urban
740	740
741	741
742	742
743	743
744	744
745	745	SB3997 - 20 - LRB103 43686 LNS 77044 b
746	746
747	747
748	748	SB3997- 21 -LRB103 43686 LNS 77044 b SB3997 - 21 - LRB103 43686 LNS 77044 b
749	749	SB3997 - 21 - LRB103 43686 LNS 77044 b
750	750	1 brownfield site in a municipality with at least 1,000,000
751	751	2 residents; (2) uses a gasification process to produce
752	752	3 substitute natural gas; (3) uses coal as at least 50% of the
753	753	4 total feedstock over the term of any sourcing agreement with a
754	754	5 utility and the remainder of the feedstock may be either
755	755	6 petroleum coke or coal, with all such coal having a high
756	756	7 bituminous rank and greater than 1.7 pounds of sulfur per
757	757	8 million Btu content unless the facility reasonably determines
758	758	9 that it is necessary to use additional petroleum coke to
759	759	10 deliver additional consumer savings, in which case the
760	760	11 facility shall use coal for at least 35% of the total feedstock
761	761	12 over the term of any sourcing agreement; and (4) captures and
762	762	13 sequesters at least 85% of the total carbon dioxide emissions
763	763	14 that the facility would otherwise emit.
764	764	15 "Clean coal SNG facility" means a facility that uses a
765	765	16 gasification process to produce substitute natural gas, that
766	766	17 sequesters at least 90% of the total carbon dioxide emissions
767	767	18 that the facility would otherwise emit, that uses at least 90%
768	768	19 coal as a feedstock, with all such coal having a high
769	769	20 bituminous rank and greater than 1.7 pounds of sulfur per
770	770	21 million Btu content, and that has a valid and effective permit
771	771	22 to construct emission sources and air pollution control
772	772	23 equipment and approval with respect to the federal regulations
773	773	24 for Prevention of Significant Deterioration of Air Quality
774	774	25 (PSD) for the plant pursuant to the federal Clean Air Act;
775	775	26 provided, however, a clean coal SNG brownfield facility shall
776	776
777	777
778	778
779	779
780	780
781	781	SB3997 - 21 - LRB103 43686 LNS 77044 b
782	782
783	783
784	784	SB3997- 22 -LRB103 43686 LNS 77044 b SB3997 - 22 - LRB103 43686 LNS 77044 b
785	785	SB3997 - 22 - LRB103 43686 LNS 77044 b
786	786	1 not be a clean coal SNG facility.
787	787	2 "Clean energy" means energy generation that is 90% or
788	788	3 greater free of carbon dioxide emissions.
789	789	4 "Commission" means the Illinois Commerce Commission.
790	790	5 "Community renewable generation project" means an electric
791	791	6 generating facility that:
792	792	7 (1) is powered by wind, solar thermal energy,
793	793	8 photovoltaic cells or panels, biodiesel, crops and
794	794	9 untreated and unadulterated organic waste biomass, and
795	795	10 hydropower that does not involve new construction of dams;
796	796	11 (2) is interconnected at the distribution system level
797	797	12 of an electric utility as defined in this Section, a
798	798	13 municipal utility as defined in this Section that owns or
799	799	14 operates electric distribution facilities, a public
800	800	15 utility as defined in Section 3-105 of the Public
801	801	16 Utilities Act, or an electric cooperative, as defined in
802	802	17 Section 3-119 of the Public Utilities Act;
803	803	18 (3) credits the value of electricity generated by the
804	804	19 facility to the subscribers of the facility; and
805	805	20 (4) is limited in nameplate capacity to less than or
806	806	21 equal to 5,000 kilowatts.
807	807	22 "Costs incurred in connection with the development and
808	808	23 construction of a facility" means:
809	809	24 (1) the cost of acquisition of all real property,
810	810	25 fixtures, and improvements in connection therewith and
811	811	26 equipment, personal property, and other property, rights,
812	812
813	813
814	814
815	815
816	816
817	817	SB3997 - 22 - LRB103 43686 LNS 77044 b
818	818
819	819
820	820	SB3997- 23 -LRB103 43686 LNS 77044 b SB3997 - 23 - LRB103 43686 LNS 77044 b
821	821	SB3997 - 23 - LRB103 43686 LNS 77044 b
822	822	1 and easements acquired that are deemed necessary for the
823	823	2 operation and maintenance of the facility;
824	824	3 (2) financing costs with respect to bonds, notes, and
825	825	4 other evidences of indebtedness of the Agency;
826	826	5 (3) all origination, commitment, utilization,
827	827	6 facility, placement, underwriting, syndication, credit
828	828	7 enhancement, and rating agency fees;
829	829	8 (4) engineering, design, procurement, consulting,
830	830	9 legal, accounting, title insurance, survey, appraisal,
831	831	10 escrow, trustee, collateral agency, interest rate hedging,
832	832	11 interest rate swap, capitalized interest, contingency, as
833	833	12 required by lenders, and other financing costs, and other
834	834	13 expenses for professional services; and
835	835	14 (5) the costs of plans, specifications, site study and
836	836	15 investigation, installation, surveys, other Agency costs
837	837	16 and estimates of costs, and other expenses necessary or
838	838	17 incidental to determining the feasibility of any project,
839	839	18 together with such other expenses as may be necessary or
840	840	19 incidental to the financing, insuring, acquisition, and
841	841	20 construction of a specific project and starting up,
842	842	21 commissioning, and placing that project in operation.
843	843	22 "Delivery services" has the same definition as found in
844	844	23 Section 16-102 of the Public Utilities Act.
845	845	24 "Delivery year" means the consecutive 12-month period
846	846	25 beginning June 1 of a given year and ending May 31 of the
847	847	26 following year.
848	848
849	849
850	850
851	851
852	852
853	853	SB3997 - 23 - LRB103 43686 LNS 77044 b
854	854
855	855
856	856	SB3997- 24 -LRB103 43686 LNS 77044 b SB3997 - 24 - LRB103 43686 LNS 77044 b
857	857	SB3997 - 24 - LRB103 43686 LNS 77044 b
858	858	1 "Department" means the Department of Commerce and Economic
859	859	2 Opportunity.
860	860	3 "Director" means the Director of the Illinois Power
861	861	4 Agency.
862	862	5 "Demand-response" means measures that decrease peak
863	863	6 electricity demand or shift demand from peak to off-peak
864	864	7 periods.
865	865	8 "Distributed renewable energy generation device" means a
866	866	9 device that is:
867	867	10 (1) powered by wind, solar thermal energy,
868	868	11 photovoltaic cells or panels, biodiesel, crops and
869	869	12 untreated and unadulterated organic waste biomass, tree
870	870	13 waste, and hydropower that does not involve new
871	871	14 construction of dams, waste heat to power systems, or
872	872	15 qualified combined heat and power systems;
873	873	16 (2) interconnected at the distribution system level of
874	874	17 either an electric utility as defined in this Section, a
875	875	18 municipal utility as defined in this Section that owns or
876	876	19 operates electric distribution facilities, or a rural
877	877	20 electric cooperative as defined in Section 3-119 of the
878	878	21 Public Utilities Act;
879	879	22 (3) located on the customer side of the customer's
880	880	23 electric meter and is primarily used to offset that
881	881	24 customer's electricity load; and
882	882	25 (4) (blank).
883	883	26 "Energy efficiency" means measures that reduce the amount
884	884
885	885
886	886
887	887
888	888
889	889	SB3997 - 24 - LRB103 43686 LNS 77044 b
890	890
891	891
892	892	SB3997- 25 -LRB103 43686 LNS 77044 b SB3997 - 25 - LRB103 43686 LNS 77044 b
893	893	SB3997 - 25 - LRB103 43686 LNS 77044 b
894	894	1 of electricity or natural gas consumed in order to achieve a
895	895	2 given end use. "Energy efficiency" includes voltage
896	896	3 optimization measures that optimize the voltage at points on
897	897	4 the electric distribution voltage system and thereby reduce
898	898	5 electricity consumption by electric customers' end use
899	899	6 devices. "Energy efficiency" also includes measures that
900	900	7 reduce the total Btus of electricity, natural gas, and other
901	901	8 fuels needed to meet the end use or uses.
902	902	9 "Electric utility" has the same definition as found in
903	903	10 Section 16-102 of the Public Utilities Act.
904	904	11 "Equity investment eligible community" or "eligible
905	905	12 community" are synonymous and mean the geographic areas
906	906	13 throughout Illinois which would most benefit from equitable
907	907	14 investments by the State designed to combat discrimination.
908	908	15 Specifically, the eligible communities shall be defined as the
909	909	16 following areas:
910	910	17 (1) R3 Areas as established pursuant to Section 10-40
911	911	18 of the Cannabis Regulation and Tax Act, where residents
912	912	19 have historically been excluded from economic
913	913	20 opportunities, including opportunities in the energy
914	914	21 sector; and
915	915	22 (2) environmental justice communities, as defined by
916	916	23 the Illinois Power Agency pursuant to the Illinois Power
917	917	24 Agency Act, where residents have historically been subject
918	918	25 to disproportionate burdens of pollution, including
919	919	26 pollution from the energy sector.
920	920
921	921
922	922
923	923
924	924
925	925	SB3997 - 25 - LRB103 43686 LNS 77044 b
926	926
927	927
928	928	SB3997- 26 -LRB103 43686 LNS 77044 b SB3997 - 26 - LRB103 43686 LNS 77044 b
929	929	SB3997 - 26 - LRB103 43686 LNS 77044 b
930	930	1 "Equity eligible persons" or "eligible persons" means
931	931	2 persons who would most benefit from equitable investments by
932	932	3 the State designed to combat discrimination, specifically:
933	933	4 (1) persons who graduate from or are current or former
934	934	5 participants in the Clean Jobs Workforce Network Program,
935	935	6 the Clean Energy Contractor Incubator Program, the
936	936	7 Illinois Climate Works Preapprenticeship Program,
937	937	8 Returning Residents Clean Jobs Training Program, or the
938	938	9 Clean Energy Primes Contractor Accelerator Program, and
939	939	10 the solar training pipeline and multi-cultural jobs
940	940	11 program created in paragraphs (a)(1) and (a)(3) of Section
941	941	12 16-208.12 of the Public Utilities Act;
942	942	13 (2) persons who are graduates of or currently enrolled
943	943	14 in the foster care system;
944	944	15 (3) persons who were formerly incarcerated;
945	945	16 (4) persons whose primary residence is in an equity
946	946	17 investment eligible community.
947	947	18 "Equity eligible contractor" means a business that is
948	948	19 majority-owned by eligible persons, or a nonprofit or
949	949	20 cooperative that is majority-governed by eligible persons, or
950	950	21 is a natural person that is an eligible person offering
951	951	22 personal services as an independent contractor.
952	952	23 "Facility" means an electric generating unit or a
953	953	24 co-generating unit that produces electricity along with
954	954	25 related equipment necessary to connect the facility to an
955	955	26 electric transmission or distribution system.
956	956
957	957
958	958
959	959
960	960
961	961	SB3997 - 26 - LRB103 43686 LNS 77044 b
962	962
963	963
964	964	SB3997- 27 -LRB103 43686 LNS 77044 b SB3997 - 27 - LRB103 43686 LNS 77044 b
965	965	SB3997 - 27 - LRB103 43686 LNS 77044 b
966	966	1 "General contractor" means the entity or organization with
967	967	2 main responsibility for the building of a construction project
968	968	3 and who is the party signing the prime construction contract
969	969	4 for the project.
970	970	5 "Governmental aggregator" means one or more units of local
971	971	6 government that individually or collectively procure
972	972	7 electricity to serve residential retail electrical loads
973	973	8 located within its or their jurisdiction.
974	974	9 "High voltage direct current converter station" means the
975	975	10 collection of equipment that converts direct current energy
976	976	11 from a high voltage direct current transmission line into
977	977	12 alternating current using Voltage Source Conversion technology
978	978	13 and that is interconnected with transmission or distribution
979	979	14 assets located in Illinois.
980	980	15 "High voltage direct current renewable energy credit"
981	981	16 means a renewable energy credit associated with a renewable
982	982	17 energy resource where the renewable energy resource has
983	983	18 entered into a contract to transmit the energy associated with
984	984	19 such renewable energy credit over high voltage direct current
985	985	20 transmission facilities.
986	986	21 "High voltage direct current transmission facilities"
987	987	22 means the collection of installed equipment that converts
988	988	23 alternating current energy in one location to direct current
989	989	24 and transmits that direct current energy to a high voltage
990	990	25 direct current converter station using Voltage Source
991	991	26 Conversion technology. "High voltage direct current
992	992
993	993
994	994
995	995
996	996
997	997	SB3997 - 27 - LRB103 43686 LNS 77044 b
998	998
999	999
1000	1000	SB3997- 28 -LRB103 43686 LNS 77044 b SB3997 - 28 - LRB103 43686 LNS 77044 b
1001	1001	SB3997 - 28 - LRB103 43686 LNS 77044 b
1002	1002	1 transmission facilities" includes the high voltage direct
1003	1003	2 current converter station itself and associated high voltage
1004	1004	3 direct current transmission lines. Notwithstanding the
1005	1005	4 preceding, after September 15, 2021 (the effective date of
1006	1006	5 Public Act 102-662), an otherwise qualifying collection of
1007	1007	6 equipment does not qualify as high voltage direct current
1008	1008	7 transmission facilities unless its developer entered into a
1009	1009	8 project labor agreement, is capable of transmitting
1010	1010	9 electricity at 525kv with an Illinois converter station
1011	1011	10 located and interconnected in the region of the PJM
1012	1012	11 Interconnection, LLC, and the system does not operate as a
1013	1013	12 public utility, as that term is defined in Section 3-105 of the
1014	1014	13 Public Utilities Act.
1015	1015	14 "Hydropower" means any method of electricity generation or
1016	1016	15 storage that results from the flow of water, including
1017	1017	16 impoundment facilities, diversion facilities, and pumped
1018	1018	17 storage facilities.
1019	1019	18 "Index price" means the real-time energy settlement price
1020	1020	19 at the applicable Illinois trading hub, such as PJM-NIHUB or
1021	1021	20 MISO-IL, for a given settlement period.
1022	1022	21 "Indexed renewable energy credit" means a tradable credit
1023	1023	22 that represents the environmental attributes of one megawatt
1024	1024	23 hour of energy produced from a renewable energy resource, the
1025	1025	24 price of which shall be calculated by subtracting the strike
1026	1026	25 price offered by a new utility-scale wind project or a new
1027	1027	26 utility-scale photovoltaic project from the index price in a
1028	1028
1029	1029
1030	1030
1031	1031
1032	1032
1033	1033	SB3997 - 28 - LRB103 43686 LNS 77044 b
1034	1034
1035	1035
1036	1036	SB3997- 29 -LRB103 43686 LNS 77044 b SB3997 - 29 - LRB103 43686 LNS 77044 b
1037	1037	SB3997 - 29 - LRB103 43686 LNS 77044 b
1038	1038	1 given settlement period.
1039	1039	2 "Indexed renewable energy credit counterparty" has the
1040	1040	3 same meaning as "public utility" as defined in Section 3-105
1041	1041	4 of the Public Utilities Act.
1042	1042	5 "Local government" means a unit of local government as
1043	1043	6 defined in Section 1 of Article VII of the Illinois
1044	1044	7 Constitution.
1045	1045	8 "Modernized" or "retooled" means the construction, repair,
1046	1046	9 maintenance, or significant expansion of turbines and existing
1047	1047	10 hydropower dams.
1048	1048	11 "Municipality" means a city, village, or incorporated
1049	1049	12 town.
1050	1050	13 "Municipal utility" means a public utility owned and
1051	1051	14 operated by any subdivision or municipal corporation of this
1052	1052	15 State.
1053	1053	16 "Nameplate capacity" means the aggregate inverter
1054	1054	17 nameplate capacity in kilowatts AC.
1055	1055	18 "Person" means any natural person, firm, partnership,
1056	1056	19 corporation, either domestic or foreign, company, association,
1057	1057	20 limited liability company, joint stock company, or association
1058	1058	21 and includes any trustee, receiver, assignee, or personal
1059	1059	22 representative thereof.
1060	1060	23 "Project" means the planning, bidding, and construction of
1061	1061	24 a facility.
1062	1062	25 "Project labor agreement" means a pre-hire collective
1063	1063	26 bargaining agreement that covers all terms and conditions of
1064	1064
1065	1065
1066	1066
1067	1067
1068	1068
1069	1069	SB3997 - 29 - LRB103 43686 LNS 77044 b
1070	1070
1071	1071
1072	1072	SB3997- 30 -LRB103 43686 LNS 77044 b SB3997 - 30 - LRB103 43686 LNS 77044 b
1073	1073	SB3997 - 30 - LRB103 43686 LNS 77044 b
1074	1074	1 employment on a specific construction project and must include
1075	1075	2 the following:
1076	1076	3 (1) provisions establishing the minimum hourly wage
1077	1077	4 for each class of labor organization employee;
1078	1078	5 (2) provisions establishing the benefits and other
1079	1079	6 compensation for each class of labor organization
1080	1080	7 employee;
1081	1081	8 (3) provisions establishing that no strike or disputes
1082	1082	9 will be engaged in by the labor organization employees;
1083	1083	10 (4) provisions establishing that no lockout or
1084	1084	11 disputes will be engaged in by the general contractor
1085	1085	12 building the project; and
1086	1086	13 (5) provisions for minorities and women, as defined
1087	1087	14 under the Business Enterprise for Minorities, Women, and
1088	1088	15 Persons with Disabilities Act, setting forth goals for
1089	1089	16 apprenticeship hours to be performed by minorities and
1090	1090	17 women and setting forth goals for total hours to be
1091	1091	18 performed by underrepresented minorities and women.
1092	1092	19 A labor organization and the general contractor building
1093	1093	20 the project shall have the authority to include other terms
1094	1094	21 and conditions as they deem necessary.
1095	1095	22 "Public utility" has the same definition as found in
1096	1096	23 Section 3-105 of the Public Utilities Act.
1097	1097	24 "Qualified combined heat and power systems" means systems
1098	1098	25 that, either simultaneously or sequentially, produce
1099	1099	26 electricity and useful thermal energy from a single fuel
1100	1100
1101	1101
1102	1102
1103	1103
1104	1104
1105	1105	SB3997 - 30 - LRB103 43686 LNS 77044 b
1106	1106
1107	1107
1108	1108	SB3997- 31 -LRB103 43686 LNS 77044 b SB3997 - 31 - LRB103 43686 LNS 77044 b
1109	1109	SB3997 - 31 - LRB103 43686 LNS 77044 b
1110	1110	1 source. Such systems are eligible for "renewable energy
1111	1111	2 credits" in an amount equal to its total energy output where a
1112	1112	3 renewable fuel is consumed or in an amount equal to the net
1113	1113	4 reduction in nonrenewable fuel consumed on a total energy
1114	1114	5 output basis.
1115	1115	6 "Real property" means any interest in land together with
1116	1116	7 all structures, fixtures, and improvements thereon, including
1117	1117	8 lands under water and riparian rights, any easements,
1118	1118	9 covenants, licenses, leases, rights-of-way, uses, and other
1119	1119	10 interests, together with any liens, judgments, mortgages, or
1120	1120	11 other claims or security interests related to real property.
1121	1121	12 "Renewable energy credit" means a tradable credit that
1122	1122	13 represents the environmental attributes of one megawatt hour
1123	1123	14 of energy produced from a renewable energy resource.
1124	1124	15 "Renewable energy resources" includes energy and its
1125	1125	16 associated renewable energy credit or renewable energy credits
1126	1126	17 from wind, solar thermal energy, photovoltaic cells and
1127	1127	18 panels, biodiesel, anaerobic digestion, crops and untreated
1128	1128	19 and unadulterated organic waste biomass, and hydropower that
1129	1129	20 does not involve new construction of dams, waste heat to power
1130	1130	21 systems, or qualified combined heat and power systems. For
1131	1131	22 purposes of this Act, landfill gas produced in the State is
1132	1132	23 considered a renewable energy resource. "Renewable energy
1133	1133	24 resources" does not include the incineration or burning of
1134	1134	25 tires, garbage, general household, institutional, and
1135	1135	26 commercial waste, industrial lunchroom or office waste,
1136	1136
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141	SB3997 - 31 - LRB103 43686 LNS 77044 b
1142	1142
1143	1143
1144	1144	SB3997- 32 -LRB103 43686 LNS 77044 b SB3997 - 32 - LRB103 43686 LNS 77044 b
1145	1145	SB3997 - 32 - LRB103 43686 LNS 77044 b
1146	1146	1 landscape waste, railroad crossties, utility poles, or
1147	1147	2 construction or demolition debris, other than untreated and
1148	1148	3 unadulterated waste wood. "Renewable energy resources" also
1149	1149	4 includes high voltage direct current renewable energy credits
1150	1150	5 and the associated energy converted to alternating current by
1151	1151	6 a high voltage direct current converter station to the extent
1152	1152	7 that: (1) the generator of such renewable energy resource
1153	1153	8 contracted with a third party to transmit the energy over the
1154	1154	9 high voltage direct current transmission facilities, and (2)
1155	1155	10 the third-party contracting for delivery of renewable energy
1156	1156	11 resources over the high voltage direct current transmission
1157	1157	12 facilities have ownership rights over the unretired associated
1158	1158	13 high voltage direct current renewable energy credit.
1159	1159	14 "Retail customer" has the same definition as found in
1160	1160	15 Section 16-102 of the Public Utilities Act.
1161	1161	16 "Revenue bond" means any bond, note, or other evidence of
1162	1162	17 indebtedness issued by the Authority, the principal and
1163	1163	18 interest of which is payable solely from revenues or income
1164	1164	19 derived from any project or activity of the Agency.
1165	1165	20 "Sequester" means permanent storage of carbon dioxide by
1166	1166	21 injecting it into a saline aquifer, a depleted gas reservoir,
1167	1167	22 or an oil reservoir, directly or through an enhanced oil
1168	1168	23 recovery process that may involve intermediate storage,
1169	1169	24 regardless of whether these activities are conducted by a
1170	1170	25 clean coal facility, a clean coal SNG facility, a clean coal
1171	1171	26 SNG brownfield facility, or a party with which a clean coal
1172	1172
1173	1173
1174	1174
1175	1175
1176	1176
1177	1177	SB3997 - 32 - LRB103 43686 LNS 77044 b
1178	1178
1179	1179
1180	1180	SB3997- 33 -LRB103 43686 LNS 77044 b SB3997 - 33 - LRB103 43686 LNS 77044 b
1181	1181	SB3997 - 33 - LRB103 43686 LNS 77044 b
1182	1182	1 facility, clean coal SNG facility, or clean coal SNG
1183	1183	2 brownfield facility has contracted for such purposes.
1184	1184	3 "Service area" has the same definition as found in Section
1185	1185	4 16-102 of the Public Utilities Act.
1186	1186	5 "Settlement period" means the period of time utilized by
1187	1187	6 MISO and PJM and their successor organizations as the basis
1188	1188	7 for settlement calculations in the real-time energy market.
1189	1189	8 "Sourcing agreement" means (i) in the case of an electric
1190	1190	9 utility, an agreement between the owner of a clean coal
1191	1191	10 facility and such electric utility, which agreement shall have
1192	1192	11 terms and conditions meeting the requirements of paragraph (3)
1193	1193	12 of subsection (d) of Section 1-75, (ii) in the case of an
1194	1194	13 alternative retail electric supplier, an agreement between the
1195	1195	14 owner of a clean coal facility and such alternative retail
1196	1196	15 electric supplier, which agreement shall have terms and
1197	1197	16 conditions meeting the requirements of Section 16-115(d)(5) of
1198	1198	17 the Public Utilities Act, and (iii) in case of a gas utility,
1199	1199	18 an agreement between the owner of a clean coal SNG brownfield
1200	1200	19 facility and the gas utility, which agreement shall have the
1201	1201	20 terms and conditions meeting the requirements of subsection
1202	1202	21 (h-1) of Section 9-220 of the Public Utilities Act.
1203	1203	22 "Strike price" means a contract price for energy and
1204	1204	23 renewable energy credits from a new utility-scale wind project
1205	1205	24 or a new utility-scale photovoltaic project.
1206	1206	25 "Subscriber" means a person who (i) takes delivery service
1207	1207	26 from an electric utility, and (ii) has a subscription of no
1208	1208
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213	SB3997 - 33 - LRB103 43686 LNS 77044 b
1214	1214
1215	1215
1216	1216	SB3997- 34 -LRB103 43686 LNS 77044 b SB3997 - 34 - LRB103 43686 LNS 77044 b
1217	1217	SB3997 - 34 - LRB103 43686 LNS 77044 b
1218	1218	1 less than 200 watts to a community renewable generation
1219	1219	2 project that is located in the electric utility's service
1220	1220	3 area. No subscriber's subscriptions may total more than 40% of
1221	1221	4 the nameplate capacity of an individual community renewable
1222	1222	5 generation project. Entities that are affiliated by virtue of
1223	1223	6 a common parent shall not represent multiple subscriptions
1224	1224	7 that total more than 40% of the nameplate capacity of an
1225	1225	8 individual community renewable generation project.
1226	1226	9 "Subscription" means an interest in a community renewable
1227	1227	10 generation project expressed in kilowatts, which is sized
1228	1228	11 primarily to offset part or all of the subscriber's
1229	1229	12 electricity usage.
1230	1230	13 "Substitute natural gas" or "SNG" means a gas manufactured
1231	1231	14 by gasification of hydrocarbon feedstock, which is
1232	1232	15 substantially interchangeable in use and distribution with
1233	1233	16 conventional natural gas.
1234	1234	17 "Total resource cost test" or "TRC test" means a standard
1235	1235	18 that is met if, for an investment in energy efficiency or
1236	1236	19 demand-response measures, the benefit-cost ratio is greater
1237	1237	20 than one. The benefit-cost ratio is the ratio of the net
1238	1238	21 present value of the total benefits of the program to the net
1239	1239	22 present value of the total costs as calculated over the
1240	1240	23 lifetime of the measures. A total resource cost test compares
1241	1241	24 the sum of avoided electric utility costs, representing the
1242	1242	25 benefits that accrue to the system and the participant in the
1243	1243	26 delivery of those efficiency measures and including avoided
1244	1244
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249	SB3997 - 34 - LRB103 43686 LNS 77044 b
1250	1250
1251	1251
1252	1252	SB3997- 35 -LRB103 43686 LNS 77044 b SB3997 - 35 - LRB103 43686 LNS 77044 b
1253	1253	SB3997 - 35 - LRB103 43686 LNS 77044 b
1254	1254	1 costs associated with reduced use of natural gas or other
1255	1255	2 fuels, avoided costs associated with reduced water
1256	1256	3 consumption, and avoided costs associated with reduced
1257	1257	4 operation and maintenance costs, avoided societal costs
1258	1258	5 associated with reductions in greenhouse gas emissions, as
1259	1259	6 well as other quantifiable societal benefits, to the sum of
1260	1260	7 all incremental costs of end-use measures that are implemented
1261	1261	8 due to the program (including both utility and participant
1262	1262	9 contributions), plus costs to administer, deliver, and
1263	1263	10 evaluate each demand-side program, to quantify the net savings
1264	1264	11 obtained by substituting the demand-side program for supply
1265	1265	12 resources. The societal costs associated with greenhouse gas
1266	1266	13 emissions shall be assumed to be the greater of (i) $200 per
1267	1267	14 short ton, expressed in 2024 dollars, or (ii) the most
1268	1268	15 recently approved estimate developed by the federal government
1269	1269	16 using a real discount rate consistent with long-term Treasury
1270	1270	17 bond yields. Changes in greenhouse gas emissions from changes
1271	1271	18 in electricity consumption shall be estimated using long-run
1272	1272	19 marginal emissions rates developed by the National Renewable
1273	1273	20 Energy Laboratory's Cambium model or other Illinois-specific
1274	1274	21 modeling of comparable analytical rigor. In calculating
1275	1275	22 avoided costs of power and energy that an electric utility
1276	1276	23 would otherwise have had to acquire, reasonable estimates
1277	1277	24 shall be included of financial costs likely to be imposed by
1278	1278	25 future regulations and legislation on emissions of greenhouse
1279	1279	26 gases. In discounting future societal costs and benefits for
1280	1280
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285	SB3997 - 35 - LRB103 43686 LNS 77044 b
1286	1286
1287	1287
1288	1288	SB3997- 36 -LRB103 43686 LNS 77044 b SB3997 - 36 - LRB103 43686 LNS 77044 b
1289	1289	SB3997 - 36 - LRB103 43686 LNS 77044 b
1290	1290	1 the purpose of calculating net present values, a societal
1291	1291	2 discount rate based on actual, long-term Treasury bond yields
1292	1292	3 should be used. Notwithstanding anything to the contrary, the
1293	1293	4 TRC test shall not include or take into account a calculation
1294	1294	5 of market price suppression effects or demand reduction
1295	1295	6 induced price effects.
1296	1296	7 "Utility-scale solar project" means an electric generating
1297	1297	8 facility that:
1298	1298	9 (1) generates electricity using photovoltaic cells;
1299	1299	10 and
1300	1300	11 (2) has a nameplate capacity that is greater than
1301	1301	12 5,000 kilowatts.
1302	1302	13 "Utility-scale wind project" means an electric generating
1303	1303	14 facility that:
1304	1304	15 (1) generates electricity using wind; and
1305	1305	16 (2) has a nameplate capacity that is greater than
1306	1306	17 5,000 kilowatts.
1307	1307	18 "Waste Heat to Power Systems" means systems that capture
1308	1308	19 and generate electricity from energy that would otherwise be
1309	1309	20 lost to the atmosphere without the use of additional fuel.
1310	1310	21 "Zero emission credit" means a tradable credit that
1311	1311	22 represents the environmental attributes of one megawatt hour
1312	1312	23 of energy produced from a zero emission facility.
1313	1313	24 "Zero emission facility" means a facility that: (1) is
1314	1314	25 fueled by nuclear power; and (2) is interconnected with PJM
1315	1315	26 Interconnection, LLC or the Midcontinent Independent System
1316	1316
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321	SB3997 - 36 - LRB103 43686 LNS 77044 b
1322	1322
1323	1323
1324	1324	SB3997- 37 -LRB103 43686 LNS 77044 b SB3997 - 37 - LRB103 43686 LNS 77044 b
1325	1325	SB3997 - 37 - LRB103 43686 LNS 77044 b
1326	1326	1 Operator, Inc., or their successors.
1327	1327	2 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
1328	1328	3 103-380, eff. 1-1-24.)
1329	1329	4 (20 ILCS 3855/1-56)
1330	1330	5 Sec. 1-56. Illinois Power Agency Renewable Energy
1331	1331	6 Resources Fund; Illinois Solar for All Program.
1332	1332	7 (a) The Illinois Power Agency Renewable Energy Resources
1333	1333	8 Fund is created as a special fund in the State treasury.
1334	1334	9 (b) The Illinois Power Agency Renewable Energy Resources
1335	1335	10 Fund shall be administered by the Agency as described in this
1336	1336	11 subsection (b), provided that the changes to this subsection
1337	1337	12 (b) made by Public Act 99-906 shall not interfere with
1338	1338	13 existing contracts under this Section.
1339	1339	14 (1) The Illinois Power Agency Renewable Energy
1340	1340	15 Resources Fund shall be used to purchase renewable energy
1341	1341	16 credits according to any approved procurement plan
1342	1342	17 developed by the Agency prior to June 1, 2017.
1343	1343	18 (2) The Illinois Power Agency Renewable Energy
1344	1344	19 Resources Fund shall also be used to create the Illinois
1345	1345	20 Solar for All Program, which provides incentives for
1346	1346	21 low-income distributed generation and community solar
1347	1347	22 projects, and other associated approved expenditures. The
1348	1348	23 objectives of the Illinois Solar for All Program are to
1349	1349	24 bring photovoltaics to low-income communities in this
1350	1350	25 State in a manner that maximizes the development of new
1351	1351
1352	1352
1353	1353
1354	1354
1355	1355
1356	1356	SB3997 - 37 - LRB103 43686 LNS 77044 b
1357	1357
1358	1358
1359	1359	SB3997- 38 -LRB103 43686 LNS 77044 b SB3997 - 38 - LRB103 43686 LNS 77044 b
1360	1360	SB3997 - 38 - LRB103 43686 LNS 77044 b
1361	1361	1 photovoltaic generating facilities, to create a long-term,
1362	1362	2 low-income solar marketplace throughout this State, to
1363	1363	3 integrate, through interaction with stakeholders, with
1364	1364	4 existing energy efficiency initiatives, and to minimize
1365	1365	5 administrative costs. The Illinois Solar for All Program
1366	1366	6 shall be implemented in a manner that seeks to minimize
1367	1367	7 administrative costs, and maximize efficiencies and
1368	1368	8 synergies available through coordination with similar
1369	1369	9 initiatives, including the Adjustable Block program
1370	1370	10 described in subparagraphs (K) through (M) of paragraph
1371	1371	11 (1) of subsection (c) of Section 1-75, energy efficiency
1372	1372	12 programs, job training programs, and community action
1373	1373	13 agencies. The Agency shall strive to ensure that renewable
1374	1374	14 energy credits procured through the Illinois Solar for All
1375	1375	15 Program and each of its subprograms are purchased from
1376	1376	16 projects across the breadth of low-income and
1377	1377	17 environmental justice communities in Illinois, including
1378	1378	18 both urban and rural communities, are not concentrated in
1379	1379	19 a few communities, and do not exclude particular
1380	1380	20 low-income or environmental justice communities. The
1381	1381	21 Agency shall include a description of its proposed
1382	1382	22 approach to the design, administration, implementation and
1383	1383	23 evaluation of the Illinois Solar for All Program, as part
1384	1384	24 of the long-term renewable resources procurement plan
1385	1385	25 authorized by subsection (c) of Section 1-75 of this Act,
1386	1386	26 and the program shall be designed to grow the low-income
1387	1387
1388	1388
1389	1389
1390	1390
1391	1391
1392	1392	SB3997 - 38 - LRB103 43686 LNS 77044 b
1393	1393
1394	1394
1395	1395	SB3997- 39 -LRB103 43686 LNS 77044 b SB3997 - 39 - LRB103 43686 LNS 77044 b
1396	1396	SB3997 - 39 - LRB103 43686 LNS 77044 b
1397	1397	1 solar market. The Agency or utility, as applicable, shall
1398	1398	2 purchase renewable energy credits from the (i)
1399	1399	3 photovoltaic distributed renewable energy generation
1400	1400	4 projects and (ii) community solar projects that are
1401	1401	5 procured under procurement processes authorized by the
1402	1402	6 long-term renewable resources procurement plans approved
1403	1403	7 by the Commission.
1404	1404	8 The Illinois Solar for All Program shall include the
1405	1405	9 program offerings described in subparagraphs (A) through
1406	1406	10 (E) of this paragraph (2), which the Agency shall
1407	1407	11 implement through contracts with third-party providers
1408	1408	12 and, subject to appropriation, pay the approximate amounts
1409	1409	13 identified using monies available in the Illinois Power
1410	1410	14 Agency Renewable Energy Resources Fund. Each contract that
1411	1411	15 provides for the installation of solar facilities shall
1412	1412	16 provide that the solar facilities will produce energy and
1413	1413	17 economic benefits, at a level determined by the Agency to
1414	1414	18 be reasonable, for the participating low-income customers.
1415	1415	19 The monies available in the Illinois Power Agency
1416	1416	20 Renewable Energy Resources Fund and not otherwise
1417	1417	21 committed to contracts executed under subsection (i) of
1418	1418	22 this Section, as well as, in the case of the programs
1419	1419	23 described under subparagraphs (A) through (E) of this
1420	1420	24 paragraph (2), funding authorized pursuant to subparagraph
1421	1421	25 (O) of paragraph (1) of subsection (c) of Section 1-75 of
1422	1422	26 this Act, shall initially be allocated among the programs
1423	1423
1424	1424
1425	1425
1426	1426
1427	1427
1428	1428	SB3997 - 39 - LRB103 43686 LNS 77044 b
1429	1429
1430	1430
1431	1431	SB3997- 40 -LRB103 43686 LNS 77044 b SB3997 - 40 - LRB103 43686 LNS 77044 b
1432	1432	SB3997 - 40 - LRB103 43686 LNS 77044 b
1433	1433	1 described in this paragraph (2), as follows: 35% of these
1434	1434	2 funds shall be allocated to programs described in
1435	1435	3 subparagraphs (A) and (E) of this paragraph (2), 40% of
1436	1436	4 these funds shall be allocated to programs described in
1437	1437	5 subparagraph (B) of this paragraph (2), and 25% of these
1438	1438	6 funds shall be allocated to programs described in
1439	1439	7 subparagraph (C) of this paragraph (2). The allocation of
1440	1440	8 funds among subparagraphs (A), (B), (C), and (E) of this
1441	1441	9 paragraph (2) may be changed if the Agency, after
1442	1442	10 receiving input through a stakeholder process, determines
1443	1443	11 incentives in subparagraphs (A), (B), (C), or (E) of this
1444	1444	12 paragraph (2) have not been adequately subscribed to fully
1445	1445	13 utilize available Illinois Solar for All Program funds.
1446	1446	14 Contracts that will be paid with funds in the Illinois
1447	1447	15 Power Agency Renewable Energy Resources Fund shall be
1448	1448	16 executed by the Agency. Contracts that will be paid with
1449	1449	17 funds collected by an electric utility shall be executed
1450	1450	18 by the electric utility.
1451	1451	19 Contracts under the Illinois Solar for All Program
1452	1452	20 shall include an approach, as set forth in the long-term
1453	1453	21 renewable resources procurement plans, to ensure the
1454	1454	22 wholesale market value of the energy is credited to
1455	1455	23 participating low-income customers or organizations and to
1456	1456	24 ensure tangible economic benefits flow directly to program
1457	1457	25 participants, except in the case of low-income
1458	1458	26 multi-family housing where the low-income customer does
1459	1459
1460	1460
1461	1461
1462	1462
1463	1463
1464	1464	SB3997 - 40 - LRB103 43686 LNS 77044 b
1465	1465
1466	1466
1467	1467	SB3997- 41 -LRB103 43686 LNS 77044 b SB3997 - 41 - LRB103 43686 LNS 77044 b
1468	1468	SB3997 - 41 - LRB103 43686 LNS 77044 b
1469	1469	1 not directly pay for energy. Priority shall be given to
1470	1470	2 projects that demonstrate meaningful involvement of
1471	1471	3 low-income community members in designing the initial
1472	1472	4 proposals. Acceptable proposals to implement projects must
1473	1473	5 demonstrate the applicant's ability to conduct initial
1474	1474	6 community outreach, education, and recruitment of
1475	1475	7 low-income participants in the community. Projects must
1476	1476	8 include job training opportunities if available, with the
1477	1477	9 specific level of trainee usage to be determined through
1478	1478	10 the Agency's long-term renewable resources procurement
1479	1479	11 plan, and the Illinois Solar for All Program Administrator
1480	1480	12 shall coordinate with the job training programs described
1481	1481	13 in paragraph (1) of subsection (a) of Section 16-108.12 of
1482	1482	14 the Public Utilities Act and in the Energy Transition Act.
1483	1483	15 The Agency shall make every effort to ensure that
1484	1484	16 small and emerging businesses, particularly those located
1485	1485	17 in low-income and environmental justice communities, are
1486	1486	18 able to participate in the Illinois Solar for All Program.
1487	1487	19 These efforts may include, but shall not be limited to,
1488	1488	20 proactive support from the program administrator,
1489	1489	21 different or preferred access to subprograms and
1490	1490	22 administrator-identified customers or grassroots
1491	1491	23 education provider-identified customers, and different
1492	1492	24 incentive levels. The Agency shall report on progress and
1493	1493	25 barriers to participation of small and emerging businesses
1494	1494	26 in the Illinois Solar for All Program at least once a year.
1495	1495
1496	1496
1497	1497
1498	1498
1499	1499
1500	1500	SB3997 - 41 - LRB103 43686 LNS 77044 b
1501	1501
1502	1502
1503	1503	SB3997- 42 -LRB103 43686 LNS 77044 b SB3997 - 42 - LRB103 43686 LNS 77044 b
1504	1504	SB3997 - 42 - LRB103 43686 LNS 77044 b
1505	1505	1 The report shall be made available on the Agency's website
1506	1506	2 and, in years when the Agency is updating its long-term
1507	1507	3 renewable resources procurement plan, included in that
1508	1508	4 Plan.
1509	1509	5 (A) Low-income single-family and small multifamily
1510	1510	6 solar incentive. This program will provide incentives
1511	1511	7 to low-income customers, either directly or through
1512	1512	8 solar providers, to increase the participation of
1513	1513	9 low-income households in photovoltaic on-site
1514	1514	10 distributed generation at residential buildings
1515	1515	11 containing one to 4 units. Companies participating in
1516	1516	12 this program that install solar panels shall commit to
1517	1517	13 hiring job trainees for a portion of their low-income
1518	1518	14 installations, and an administrator shall facilitate
1519	1519	15 partnering the companies that install solar panels
1520	1520	16 with entities that provide solar panel installation
1521	1521	17 job training. It is a goal of this program that a
1522	1522	18 minimum of 25% of the incentives for this program be
1523	1523	19 allocated to projects located within environmental
1524	1524	20 justice communities. Contracts entered into under this
1525	1525	21 paragraph may be entered into with an entity that will
1526	1526	22 develop and administer the program and shall also
1527	1527	23 include contracts for renewable energy credits from
1528	1528	24 the photovoltaic distributed generation that is the
1529	1529	25 subject of the program, as set forth in the long-term
1530	1530	26 renewable resources procurement plan. Additionally:
1531	1531
1532	1532
1533	1533
1534	1534
1535	1535
1536	1536	SB3997 - 42 - LRB103 43686 LNS 77044 b
1537	1537
1538	1538
1539	1539	SB3997- 43 -LRB103 43686 LNS 77044 b SB3997 - 43 - LRB103 43686 LNS 77044 b
1540	1540	SB3997 - 43 - LRB103 43686 LNS 77044 b
1541	1541	1 (i) The Agency shall reserve a portion of this
1542	1542	2 program for projects that promote energy
1543	1543	3 sovereignty through ownership of projects by
1544	1544	4 low-income households, not-for-profit
1545	1545	5 organizations providing services to low-income
1546	1546	6 households, affordable housing owners, community
1547	1547	7 cooperatives, or community-based limited liability
1548	1548	8 companies providing services to low-income
1549	1549	9 households. Projects that feature energy ownership
1550	1550	10 should ensure that local people have control of
1551	1551	11 the project and reap benefits from the project
1552	1552	12 over and above energy bill savings. The Agency may
1553	1553	13 consider the inclusion of projects that promote
1554	1554	14 ownership over time or that involve partial
1555	1555	15 project ownership by communities, as promoting
1556	1556	16 energy sovereignty. Incentives for projects that
1557	1557	17 promote energy sovereignty may be higher than
1558	1558	18 incentives for equivalent projects that do not
1559	1559	19 promote energy sovereignty under this same
1560	1560	20 program.
1561	1561	21 (ii) Through its long-term renewable resources
1562	1562	22 procurement plan, the Agency shall consider
1563	1563	23 additional program and contract requirements to
1564	1564	24 ensure faithful compliance by applicants
1565	1565	25 benefiting from preferences for projects
1566	1566	26 designated to promote energy sovereignty. The
1567	1567
1568	1568
1569	1569
1570	1570
1571	1571
1572	1572	SB3997 - 43 - LRB103 43686 LNS 77044 b
1573	1573
1574	1574
1575	1575	SB3997- 44 -LRB103 43686 LNS 77044 b SB3997 - 44 - LRB103 43686 LNS 77044 b
1576	1576	SB3997 - 44 - LRB103 43686 LNS 77044 b
1577	1577	1 Agency shall make every effort to enable solar
1578	1578	2 providers already participating in the Adjustable
1579	1579	3 Block Program under subparagraph (K) of paragraph
1580	1580	4 (1) of subsection (c) of Section 1-75 of this Act,
1581	1581	5 and particularly solar providers developing
1582	1582	6 projects under item (i) of subparagraph (K) of
1583	1583	7 paragraph (1) of subsection (c) of Section 1-75 of
1584	1584	8 this Act to easily participate in the Low-Income
1585	1585	9 Distributed Generation Incentive program described
1586	1586	10 under this subparagraph (A), and vice versa. This
1587	1587	11 effort may include, but shall not be limited to,
1588	1588	12 utilizing similar or the same application systems
1589	1589	13 and processes, similar or the same forms and
1590	1590	14 formats of communication, and providing active
1591	1591	15 outreach to companies participating in one program
1592	1592	16 but not the other. The Agency shall report on
1593	1593	17 efforts made to encourage this cross-participation
1594	1594	18 in its long-term renewable resources procurement
1595	1595	19 plan.
1596	1596	20 (B) Low-Income Community Solar Project Initiative.
1597	1597	21 Incentives shall be offered to low-income customers,
1598	1598	22 either directly or through developers, to increase the
1599	1599	23 participation of low-income subscribers of community
1600	1600	24 solar projects. The developer of each project shall
1601	1601	25 identify its partnership with community stakeholders
1602	1602	26 regarding the location, development, and participation
1603	1603
1604	1604
1605	1605
1606	1606
1607	1607
1608	1608	SB3997 - 44 - LRB103 43686 LNS 77044 b
1609	1609
1610	1610
1611	1611	SB3997- 45 -LRB103 43686 LNS 77044 b SB3997 - 45 - LRB103 43686 LNS 77044 b
1612	1612	SB3997 - 45 - LRB103 43686 LNS 77044 b
1613	1613	1 in the project, provided that nothing shall preclude a
1614	1614	2 project from including an anchor tenant that does not
1615	1615	3 qualify as low-income. Companies participating in this
1616	1616	4 program that develop or install solar projects shall
1617	1617	5 commit to hiring job trainees for a portion of their
1618	1618	6 low-income installations, and an administrator shall
1619	1619	7 facilitate partnering the companies that install solar
1620	1620	8 projects with entities that provide solar installation
1621	1621	9 and related job training. It is a goal of this program
1622	1622	10 that a minimum of 25% of the incentives for this
1623	1623	11 program be allocated to community photovoltaic
1624	1624	12 projects in environmental justice communities. The
1625	1625	13 Agency shall reserve a portion of this program for
1626	1626	14 projects that promote energy sovereignty through
1627	1627	15 ownership of projects by low-income households,
1628	1628	16 not-for-profit organizations providing services to
1629	1629	17 low-income households, affordable housing owners, or
1630	1630	18 community-based limited liability companies providing
1631	1631	19 services to low-income households. Projects that
1632	1632	20 feature energy ownership should ensure that local
1633	1633	21 people have control of the project and reap benefits
1634	1634	22 from the project over and above energy bill savings.
1635	1635	23 The Agency may consider the inclusion of projects that
1636	1636	24 promote ownership over time or that involve partial
1637	1637	25 project ownership by communities, as promoting energy
1638	1638	26 sovereignty. Incentives for projects that promote
1639	1639
1640	1640
1641	1641
1642	1642
1643	1643
1644	1644	SB3997 - 45 - LRB103 43686 LNS 77044 b
1645	1645
1646	1646
1647	1647	SB3997- 46 -LRB103 43686 LNS 77044 b SB3997 - 46 - LRB103 43686 LNS 77044 b
1648	1648	SB3997 - 46 - LRB103 43686 LNS 77044 b
1649	1649	1 energy sovereignty may be higher than incentives for
1650	1650	2 equivalent projects that do not promote energy
1651	1651	3 sovereignty under this same program. Contracts entered
1652	1652	4 into under this paragraph may be entered into with
1653	1653	5 developers and shall also include contracts for
1654	1654	6 renewable energy credits related to the program.
1655	1655	7 (C) Incentives for non-profits and public
1656	1656	8 facilities. Under this program funds shall be used to
1657	1657	9 support on-site photovoltaic distributed renewable
1658	1658	10 energy generation devices to serve the load associated
1659	1659	11 with not-for-profit customers and to support
1660	1660	12 photovoltaic distributed renewable energy generation
1661	1661	13 that uses photovoltaic technology to serve the load
1662	1662	14 associated with public sector customers taking service
1663	1663	15 at public buildings. Companies participating in this
1664	1664	16 program that develop or install solar projects shall
1665	1665	17 commit to hiring job trainees for a portion of their
1666	1666	18 low-income installations, and an administrator shall
1667	1667	19 facilitate partnering the companies that install solar
1668	1668	20 projects with entities that provide solar installation
1669	1669	21 and related job training. Through its long-term
1670	1670	22 renewable resources procurement plan, the Agency shall
1671	1671	23 consider additional program and contract requirements
1672	1672	24 to ensure faithful compliance by applicants benefiting
1673	1673	25 from preferences for projects designated to promote
1674	1674	26 energy sovereignty. It is a goal of this program that
1675	1675
1676	1676
1677	1677
1678	1678
1679	1679
1680	1680	SB3997 - 46 - LRB103 43686 LNS 77044 b
1681	1681
1682	1682
1683	1683	SB3997- 47 -LRB103 43686 LNS 77044 b SB3997 - 47 - LRB103 43686 LNS 77044 b
1684	1684	SB3997 - 47 - LRB103 43686 LNS 77044 b
1685	1685	1 at least 25% of the incentives for this program be
1686	1686	2 allocated to projects located in environmental justice
1687	1687	3 communities. Contracts entered into under this
1688	1688	4 paragraph may be entered into with an entity that will
1689	1689	5 develop and administer the program or with developers
1690	1690	6 and shall also include contracts for renewable energy
1691	1691	7 credits related to the program.
1692	1692	8 (D) (Blank).
1693	1693	9 (E) Low-income large multifamily solar incentive.
1694	1694	10 This program shall provide incentives to low-income
1695	1695	11 customers, either directly or through solar providers,
1696	1696	12 to increase the participation of low-income households
1697	1697	13 in photovoltaic on-site distributed generation at
1698	1698	14 residential buildings with 5 or more units. Companies
1699	1699	15 participating in this program that develop or install
1700	1700	16 solar projects shall commit to hiring job trainees for
1701	1701	17 a portion of their low-income installations, and an
1702	1702	18 administrator shall facilitate partnering the
1703	1703	19 companies that install solar projects with entities
1704	1704	20 that provide solar installation and related job
1705	1705	21 training. It is a goal of this program that a minimum
1706	1706	22 of 25% of the incentives for this program be allocated
1707	1707	23 to projects located within environmental justice
1708	1708	24 communities. The Agency shall reserve a portion of
1709	1709	25 this program for projects that promote energy
1710	1710	26 sovereignty through ownership of projects by
1711	1711
1712	1712
1713	1713
1714	1714
1715	1715
1716	1716	SB3997 - 47 - LRB103 43686 LNS 77044 b
1717	1717
1718	1718
1719	1719	SB3997- 48 -LRB103 43686 LNS 77044 b SB3997 - 48 - LRB103 43686 LNS 77044 b
1720	1720	SB3997 - 48 - LRB103 43686 LNS 77044 b
1721	1721	1 low-income households, not-for-profit organizations
1722	1722	2 providing services to low-income households,
1723	1723	3 affordable housing owners, or community-based limited
1724	1724	4 liability companies providing services to low-income
1725	1725	5 households. Projects that feature energy ownership
1726	1726	6 should ensure that local people have control of the
1727	1727	7 project and reap benefits from the project over and
1728	1728	8 above energy bill savings. The Agency may consider the
1729	1729	9 inclusion of projects that promote ownership over time
1730	1730	10 or that involve partial project ownership by
1731	1731	11 communities, as promoting energy sovereignty.
1732	1732	12 Incentives for projects that promote energy
1733	1733	13 sovereignty may be higher than incentives for
1734	1734	14 equivalent projects that do not promote energy
1735	1735	15 sovereignty under this same program.
1736	1736	16 The requirement that a qualified person, as defined in
1737	1737	17 paragraph (1) of subsection (i) of this Section, install
1738	1738	18 photovoltaic devices does not apply to the Illinois Solar
1739	1739	19 for All Program described in this subsection (b).
1740	1740	20 In addition to the programs outlined in paragraphs (A)
1741	1741	21 through (E), the Agency and other parties may propose
1742	1742	22 additional programs through the Long-Term Renewable
1743	1743	23 Resources Procurement Plan developed and approved under
1744	1744	24 paragraph (5) of subsection (b) of Section 16-111.5 of the
1745	1745	25 Public Utilities Act. Additional programs may target
1746	1746	26 market segments not specified above and may also include
1747	1747
1748	1748
1749	1749
1750	1750
1751	1751
1752	1752	SB3997 - 48 - LRB103 43686 LNS 77044 b
1753	1753
1754	1754
1755	1755	SB3997- 49 -LRB103 43686 LNS 77044 b SB3997 - 49 - LRB103 43686 LNS 77044 b
1756	1756	SB3997 - 49 - LRB103 43686 LNS 77044 b
1757	1757	1 incentives targeted to increase the uptake of
1758	1758	2 nonphotovoltaic technologies by low-income customers,
1759	1759	3 including energy storage paired with photovoltaics, if the
1760	1760	4 Commission determines that the Illinois Solar for All
1761	1761	5 Program would provide greater benefits to the public
1762	1762	6 health and well-being of low-income residents through also
1763	1763	7 supporting that additional program versus supporting
1764	1764	8 programs already authorized.
1765	1765	9 (3) Costs associated with the Illinois Solar for All
1766	1766	10 Program and its components described in paragraph (2) of
1767	1767	11 this subsection (b), including, but not limited to, costs
1768	1768	12 associated with procuring experts, consultants, and the
1769	1769	13 program administrator referenced in this subsection (b)
1770	1770	14 and related incremental costs, costs related to income
1771	1771	15 verification and facilitating customer participation in
1772	1772	16 the program, and costs related to the evaluation of the
1773	1773	17 Illinois Solar for All Program, may be paid for using
1774	1774	18 monies in the Illinois Power Agency Renewable Energy
1775	1775	19 Resources Fund, and funds allocated pursuant to
1776	1776	20 subparagraph (O) of paragraph (1) of subsection (c) of
1777	1777	21 Section 1-75, but the Agency or program administrator
1778	1778	22 shall strive to minimize costs in the implementation of
1779	1779	23 the program. The Agency or contracting electric utility
1780	1780	24 shall purchase renewable energy credits from generation
1781	1781	25 that is the subject of a contract under subparagraphs (A)
1782	1782	26 through (E) of paragraph (2) of this subsection (b), and
1783	1783
1784	1784
1785	1785
1786	1786
1787	1787
1788	1788	SB3997 - 49 - LRB103 43686 LNS 77044 b
1789	1789
1790	1790
1791	1791	SB3997- 50 -LRB103 43686 LNS 77044 b SB3997 - 50 - LRB103 43686 LNS 77044 b
1792	1792	SB3997 - 50 - LRB103 43686 LNS 77044 b
1793	1793	1 may pay for such renewable energy credits through an
1794	1794	2 upfront payment per installed kilowatt of nameplate
1795	1795	3 capacity paid once the device is interconnected at the
1796	1796	4 distribution system level of the interconnecting utility
1797	1797	5 and verified as energized. Payments for renewable energy
1798	1798	6 credits shall be in exchange for all renewable energy
1799	1799	7 credits generated by the system during the first 15 years
1800	1800	8 of operation and shall be structured to overcome barriers
1801	1801	9 to participation in the solar market by the low-income
1802	1802	10 community. The incentives provided for in this Section may
1803	1803	11 be implemented through the pricing of renewable energy
1804	1804	12 credits where the prices paid for the credits are higher
1805	1805	13 than the prices from programs offered under subsection (c)
1806	1806	14 of Section 1-75 of this Act to account for the additional
1807	1807	15 capital necessary to successfully access targeted market
1808	1808	16 segments. The Agency or contracting electric utility shall
1809	1809	17 retire any renewable energy credits purchased under this
1810	1810	18 program and the credits shall count toward the obligation
1811	1811	19 under subsection (c) of Section 1-75 of this Act for the
1812	1812	20 electric utility to which the project is interconnected,
1813	1813	21 if applicable.
1814	1814	22 The Agency shall direct that up to 5% of the funds
1815	1815	23 available under the Illinois Solar for All Program to
1816	1816	24 community-based groups and other qualifying organizations
1817	1817	25 to assist in community-driven education efforts related to
1818	1818	26 the Illinois Solar for All Program, including general
1819	1819
1820	1820
1821	1821
1822	1822
1823	1823
1824	1824	SB3997 - 50 - LRB103 43686 LNS 77044 b
1825	1825
1826	1826
1827	1827	SB3997- 51 -LRB103 43686 LNS 77044 b SB3997 - 51 - LRB103 43686 LNS 77044 b
1828	1828	SB3997 - 51 - LRB103 43686 LNS 77044 b
1829	1829	1 energy education, job training program outreach efforts,
1830	1830	2 and other activities deemed to be qualified by the Agency.
1831	1831	3 Grassroots education funding shall not be used to support
1832	1832	4 the marketing by solar project development firms and
1833	1833	5 organizations, unless such education provides equal
1834	1834	6 opportunities for all applicable firms and organizations.
1835	1835	7 (4) The Agency shall, consistent with the requirements
1836	1836	8 of this subsection (b), propose the Illinois Solar for All
1837	1837	9 Program terms, conditions, and requirements, including the
1838	1838	10 prices to be paid for renewable energy credits, and which
1839	1839	11 prices may be determined through a formula, through the
1840	1840	12 development, review, and approval of the Agency's
1841	1841	13 long-term renewable resources procurement plan described
1842	1842	14 in subsection (c) of Section 1-75 of this Act and Section
1843	1843	15 16-111.5 of the Public Utilities Act. In the course of the
1844	1844	16 Commission proceeding initiated to review and approve the
1845	1845	17 plan, including the Illinois Solar for All Program
1846	1846	18 proposed by the Agency, a party may propose an additional
1847	1847	19 low-income solar or solar incentive program, or
1848	1848	20 modifications to the programs proposed by the Agency, and
1849	1849	21 the Commission may approve an additional program, or
1850	1850	22 modifications to the Agency's proposed program, if the
1851	1851	23 additional or modified program more effectively maximizes
1852	1852	24 the benefits to low-income customers after taking into
1853	1853	25 account all relevant factors, including, but not limited
1854	1854	26 to, the extent to which a competitive market for
1855	1855
1856	1856
1857	1857
1858	1858
1859	1859
1860	1860	SB3997 - 51 - LRB103 43686 LNS 77044 b
1861	1861
1862	1862
1863	1863	SB3997- 52 -LRB103 43686 LNS 77044 b SB3997 - 52 - LRB103 43686 LNS 77044 b
1864	1864	SB3997 - 52 - LRB103 43686 LNS 77044 b
1865	1865	1 low-income solar has developed. Following the Commission's
1866	1866	2 approval of the Illinois Solar for All Program, the Agency
1867	1867	3 or a party may propose adjustments to the program terms,
1868	1868	4 conditions, and requirements, including the price offered
1869	1869	5 to new systems, to ensure the long-term viability and
1870	1870	6 success of the program. The Commission shall review and
1871	1871	7 approve any modifications to the program through the plan
1872	1872	8 revision process described in Section 16-111.5 of the
1873	1873	9 Public Utilities Act.
1874	1874	10 (5) The Agency shall issue a request for
1875	1875	11 qualifications for a third-party program administrator or
1876	1876	12 administrators to administer all or a portion of the
1877	1877	13 Illinois Solar for All Program. The third-party program
1878	1878	14 administrator shall be chosen through a competitive bid
1879	1879	15 process based on selection criteria and requirements
1880	1880	16 developed by the Agency, including, but not limited to,
1881	1881	17 experience in administering low-income energy programs and
1882	1882	18 overseeing statewide clean energy or energy efficiency
1883	1883	19 services. If the Agency retains a program administrator or
1884	1884	20 administrators to implement all or a portion of the
1885	1885	21 Illinois Solar for All Program, each administrator shall
1886	1886	22 periodically submit reports to the Agency and Commission
1887	1887	23 for each program that it administers, at appropriate
1888	1888	24 intervals to be identified by the Agency in its long-term
1889	1889	25 renewable resources procurement plan, provided that the
1890	1890	26 reporting interval is at least quarterly. The third-party
1891	1891
1892	1892
1893	1893
1894	1894
1895	1895
1896	1896	SB3997 - 52 - LRB103 43686 LNS 77044 b
1897	1897
1898	1898
1899	1899	SB3997- 53 -LRB103 43686 LNS 77044 b SB3997 - 53 - LRB103 43686 LNS 77044 b
1900	1900	SB3997 - 53 - LRB103 43686 LNS 77044 b
1901	1901	1 program administrator may be, but need not be, the same
1902	1902	2 administrator as for the Adjustable Block program
1903	1903	3 described in subparagraphs (K) through (M) of paragraph
1904	1904	4 (1) of subsection (c) of Section 1-75. The Agency, through
1905	1905	5 its long-term renewable resources procurement plan
1906	1906	6 approval process, shall also determine if individual
1907	1907	7 subprograms of the Illinois Solar for All Program are
1908	1908	8 better served by a different or separate Program
1909	1909	9 Administrator.
1910	1910	10 The third-party administrator's responsibilities
1911	1911	11 shall also include facilitating placement for graduates of
1912	1912	12 Illinois-based renewable energy-specific job training
1913	1913	13 programs, including the Clean Jobs Workforce Network
1914	1914	14 Program and the Illinois Climate Works Preapprenticeship
1915	1915	15 Program administered by the Department of Commerce and
1916	1916	16 Economic Opportunity and programs administered under
1917	1917	17 Section 16-108.12 of the Public Utilities Act. To increase
1918	1918	18 the uptake of trainees by participating firms, the
1919	1919	19 administrator shall also develop a web-based clearinghouse
1920	1920	20 for information available to both job training program
1921	1921	21 graduates and firms participating, directly or indirectly,
1922	1922	22 in Illinois solar incentive programs. The program
1923	1923	23 administrator shall also coordinate its activities with
1924	1924	24 entities implementing electric and natural gas
1925	1925	25 income-qualified energy efficiency programs, including
1926	1926	26 customer referrals to and from such programs, and connect
1927	1927
1928	1928
1929	1929
1930	1930
1931	1931
1932	1932	SB3997 - 53 - LRB103 43686 LNS 77044 b
1933	1933
1934	1934
1935	1935	SB3997- 54 -LRB103 43686 LNS 77044 b SB3997 - 54 - LRB103 43686 LNS 77044 b
1936	1936	SB3997 - 54 - LRB103 43686 LNS 77044 b
1937	1937	1 prospective low-income solar customers with any existing
1938	1938	2 deferred maintenance programs where applicable.
1939	1939	3 (6) The long-term renewable resources procurement plan
1940	1940	4 shall also provide for an independent evaluation of the
1941	1941	5 Illinois Solar for All Program. At least every 2 years,
1942	1942	6 the Agency shall select an independent evaluator to review
1943	1943	7 and report on the Illinois Solar for All Program and the
1944	1944	8 performance of the third-party program administrator of
1945	1945	9 the Illinois Solar for All Program. The evaluation shall
1946	1946	10 be based on objective criteria developed through a public
1947	1947	11 stakeholder process. The process shall include feedback
1948	1948	12 and participation from Illinois Solar for All Program
1949	1949	13 stakeholders, including participants and organizations in
1950	1950	14 environmental justice and historically underserved
1951	1951	15 communities. The report shall include a summary of the
1952	1952	16 evaluation of the Illinois Solar for All Program based on
1953	1953	17 the stakeholder developed objective criteria. The report
1954	1954	18 shall include the number of projects installed; the total
1955	1955	19 installed capacity in kilowatts; the average cost per
1956	1956	20 kilowatt of installed capacity to the extent reasonably
1957	1957	21 obtainable by the Agency; the number of jobs or job
1958	1958	22 opportunities created; economic, social, and environmental
1959	1959	23 benefits created; and the total administrative costs
1960	1960	24 expended by the Agency and program administrator to
1961	1961	25 implement and evaluate the program. The report shall be
1962	1962	26 delivered to the Commission and posted on the Agency's
1963	1963
1964	1964
1965	1965
1966	1966
1967	1967
1968	1968	SB3997 - 54 - LRB103 43686 LNS 77044 b
1969	1969
1970	1970
1971	1971	SB3997- 55 -LRB103 43686 LNS 77044 b SB3997 - 55 - LRB103 43686 LNS 77044 b
1972	1972	SB3997 - 55 - LRB103 43686 LNS 77044 b
1973	1973	1 website, and shall be used, as needed, to revise the
1974	1974	2 Illinois Solar for All Program. The Commission shall also
1975	1975	3 consider the results of the evaluation as part of its
1976	1976	4 review of the long-term renewable resources procurement
1977	1977	5 plan under subsection (c) of Section 1-75 of this Act.
1978	1978	6 (7) If additional funding for the programs described
1979	1979	7 in this subsection (b) is available under subsection (k)
1980	1980	8 of Section 16-108 of the Public Utilities Act, then the
1981	1981	9 Agency shall submit a procurement plan to the Commission
1982	1982	10 no later than September 1, 2018, that proposes how the
1983	1983	11 Agency will procure programs on behalf of the applicable
1984	1984	12 utility. After notice and hearing, the Commission shall
1985	1985	13 approve, or approve with modification, the plan no later
1986	1986	14 than November 1, 2018.
1987	1987	15 (8) As part of the development and update of the
1988	1988	16 long-term renewable resources procurement plan authorized
1989	1989	17 by subsection (c) of Section 1-75 of this Act, the Agency
1990	1990	18 shall plan for: (A) actions to refer customers from the
1991	1991	19 Illinois Solar for All Program to electric and natural gas
1992	1992	20 income-qualified energy efficiency programs, and vice
1993	1993	21 versa, with the goal of increasing participation in both
1994	1994	22 of these programs; (B) effective procedures for data
1995	1995	23 sharing, as needed, to effectuate referrals between the
1996	1996	24 Illinois Solar for All Program and both electric and
1997	1997	25 natural gas income-qualified energy efficiency programs,
1998	1998	26 including sharing customer information directly with the
1999	1999
2000	2000
2001	2001
2002	2002
2003	2003
2004	2004	SB3997 - 55 - LRB103 43686 LNS 77044 b
2005	2005
2006	2006
2007	2007	SB3997- 56 -LRB103 43686 LNS 77044 b SB3997 - 56 - LRB103 43686 LNS 77044 b
2008	2008	SB3997 - 56 - LRB103 43686 LNS 77044 b
2009	2009	1 utilities, as needed and appropriate; and (C) efforts to
2010	2010	2 identify any existing deferred maintenance programs for
2011	2011	3 which prospective Solar for All Program customers may be
2012	2012	4 eligible and connect prospective customers for whom
2013	2013	5 deferred maintenance is or may be a barrier to solar
2014	2014	6 installation to those programs.
2015	2015	7 As used in this subsection (b), "low-income households"
2016	2016	8 means persons and families whose income does not exceed 80% of
2017	2017	9 area median income, adjusted for family size and revised every
2018	2018	10 year 5 years.
2019	2019	11 For the purposes of this subsection (b), the Agency shall
2020	2020	12 define "environmental justice community" based on the
2021	2021	13 methodologies and findings established by the Agency and the
2022	2022	14 Administrator for the Illinois Solar for All Program in its
2023	2023	15 initial long-term renewable resources procurement plan and as
2024	2024	16 updated by the Agency and the Administrator for the Illinois
2025	2025	17 Solar for All Program as part of the long-term renewable
2026	2026	18 resources procurement plan update.
2027	2027	19 (b-5) After the receipt of all payments required by
2028	2028	20 Section 16-115D of the Public Utilities Act, no additional
2029	2029	21 funds shall be deposited into the Illinois Power Agency
2030	2030	22 Renewable Energy Resources Fund unless directed by order of
2031	2031	23 the Commission.
2032	2032	24 (b-10) After the receipt of all payments required by
2033	2033	25 Section 16-115D of the Public Utilities Act and payment in
2034	2034	26 full of all contracts executed by the Agency under subsections
2035	2035
2036	2036
2037	2037
2038	2038
2039	2039
2040	2040	SB3997 - 56 - LRB103 43686 LNS 77044 b
2041	2041
2042	2042
2043	2043	SB3997- 57 -LRB103 43686 LNS 77044 b SB3997 - 57 - LRB103 43686 LNS 77044 b
2044	2044	SB3997 - 57 - LRB103 43686 LNS 77044 b
2045	2045	1 (b) and (i) of this Section, if the balance of the Illinois
2046	2046	2 Power Agency Renewable Energy Resources Fund is under $5,000,
2047	2047	3 then the Fund shall be inoperative and any remaining funds and
2048	2048	4 any funds submitted to the Fund after that date, shall be
2049	2049	5 transferred to the Supplemental Low-Income Energy Assistance
2050	2050	6 Fund for use in the Low-Income Home Energy Assistance Program,
2051	2051	7 as authorized by the Energy Assistance Act.
2052	2052	8 (b-15) The prevailing wage requirements set forth in the
2053	2053	9 Prevailing Wage Act apply to each project that is undertaken
2054	2054	10 pursuant to one or more of the programs of incentives and
2055	2055	11 initiatives described in subsection (b) of this Section and
2056	2056	12 for which a project application is submitted to the program
2057	2057	13 after the effective date of this amendatory Act of the 103rd
2058	2058	14 General Assembly, except (i) projects that serve single-family
2059	2059	15 or multi-family residential buildings and (ii) projects with
2060	2060	16 an aggregate capacity of less than 100 kilowatts that serve
2061	2061	17 houses of worship. The Agency shall require verification that
2062	2062	18 all construction performed on a project by the renewable
2063	2063	19 energy credit delivery contract holder, its contractors, or
2064	2064	20 its subcontractors relating to the construction of the
2065	2065	21 facility is performed by workers receiving an amount for that
2066	2066	22 work that is greater than or equal to the general prevailing
2067	2067	23 rate of wages as that term is defined in the Prevailing Wage
2068	2068	24 Act, and the Agency may adjust renewable energy credit prices
2069	2069	25 to account for increased labor costs.
2070	2070	26 In this subsection (b-15), "house of worship" has the
2071	2071
2072	2072
2073	2073
2074	2074
2075	2075
2076	2076	SB3997 - 57 - LRB103 43686 LNS 77044 b
2077	2077
2078	2078
2079	2079	SB3997- 58 -LRB103 43686 LNS 77044 b SB3997 - 58 - LRB103 43686 LNS 77044 b
2080	2080	SB3997 - 58 - LRB103 43686 LNS 77044 b
2081	2081	1 meaning given in subparagraph (Q) of paragraph (1) of
2082	2082	2 subsection (c) of Section 1-75.
2083	2083	3 (c) (Blank).
2084	2084	4 (d) (Blank).
2085	2085	5 (e) All renewable energy credits procured using monies
2086	2086	6 from the Illinois Power Agency Renewable Energy Resources Fund
2087	2087	7 shall be permanently retired.
2088	2088	8 (f) The selection of one or more third-party program
2089	2089	9 managers or administrators, the selection of the independent
2090	2090	10 evaluator, and the procurement processes described in this
2091	2091	11 Section are exempt from the requirements of the Illinois
2092	2092	12 Procurement Code, under Section 20-10 of that Code.
2093	2093	13 (g) All disbursements from the Illinois Power Agency
2094	2094	14 Renewable Energy Resources Fund shall be made only upon
2095	2095	15 warrants of the Comptroller drawn upon the Treasurer as
2096	2096	16 custodian of the Fund upon vouchers signed by the Director or
2097	2097	17 by the person or persons designated by the Director for that
2098	2098	18 purpose. The Comptroller is authorized to draw the warrant
2099	2099	19 upon vouchers so signed. The Treasurer shall accept all
2100	2100	20 warrants so signed and shall be released from liability for
2101	2101	21 all payments made on those warrants.
2102	2102	22 (h) The Illinois Power Agency Renewable Energy Resources
2103	2103	23 Fund shall not be subject to sweeps, administrative charges,
2104	2104	24 or chargebacks, including, but not limited to, those
2105	2105	25 authorized under Section 8h of the State Finance Act, that
2106	2106	26 would in any way result in the transfer of any funds from this
2107	2107
2108	2108
2109	2109
2110	2110
2111	2111
2112	2112	SB3997 - 58 - LRB103 43686 LNS 77044 b
2113	2113
2114	2114
2115	2115	SB3997- 59 -LRB103 43686 LNS 77044 b SB3997 - 59 - LRB103 43686 LNS 77044 b
2116	2116	SB3997 - 59 - LRB103 43686 LNS 77044 b
2117	2117	1 Fund to any other fund of this State or in having any such
2118	2118	2 funds utilized for any purpose other than the express purposes
2119	2119	3 set forth in this Section.
2120	2120	4 (h-5) The Agency may assess fees to each bidder to recover
2121	2121	5 the costs incurred in connection with a procurement process
2122	2122	6 held under this Section. Fees collected from bidders shall be
2123	2123	7 deposited into the Renewable Energy Resources Fund.
2124	2124	8 (i) Supplemental procurement process.
2125	2125	9 (1) Within 90 days after June 30, 2014 (the effective
2126	2126	10 date of Public Act 98-672), the Agency shall develop a
2127	2127	11 one-time supplemental procurement plan limited to the
2128	2128	12 procurement of renewable energy credits, if available,
2129	2129	13 from new or existing photovoltaics, including, but not
2130	2130	14 limited to, distributed photovoltaic generation. Nothing
2131	2131	15 in this subsection (i) requires procurement of wind
2132	2132	16 generation through the supplemental procurement.
2133	2133	17 Renewable energy credits procured from new
2134	2134	18 photovoltaics, including, but not limited to, distributed
2135	2135	19 photovoltaic generation, under this subsection (i) must be
2136	2136	20 procured from devices installed by a qualified person. In
2137	2137	21 its supplemental procurement plan, the Agency shall
2138	2138	22 establish contractually enforceable mechanisms for
2139	2139	23 ensuring that the installation of new photovoltaics is
2140	2140	24 performed by a qualified person.
2141	2141	25 For the purposes of this paragraph (1), "qualified
2142	2142	26 person" means a person who performs installations of
2143	2143
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148	SB3997 - 59 - LRB103 43686 LNS 77044 b
2149	2149
2150	2150
2151	2151	SB3997- 60 -LRB103 43686 LNS 77044 b SB3997 - 60 - LRB103 43686 LNS 77044 b
2152	2152	SB3997 - 60 - LRB103 43686 LNS 77044 b
2153	2153	1 photovoltaics, including, but not limited to, distributed
2154	2154	2 photovoltaic generation, and who: (A) has completed an
2155	2155	3 apprenticeship as a journeyman electrician from a United
2156	2156	4 States Department of Labor registered electrical
2157	2157	5 apprenticeship and training program and received a
2158	2158	6 certification of satisfactory completion; or (B) does not
2159	2159	7 currently meet the criteria under clause (A) of this
2160	2160	8 paragraph (1), but is enrolled in a United States
2161	2161	9 Department of Labor registered electrical apprenticeship
2162	2162	10 program, provided that the person is directly supervised
2163	2163	11 by a person who meets the criteria under clause (A) of this
2164	2164	12 paragraph (1); or (C) has obtained one of the following
2165	2165	13 credentials in addition to attesting to satisfactory
2166	2166	14 completion of at least 5 years or 8,000 hours of
2167	2167	15 documented hands-on electrical experience: (i) a North
2168	2168	16 American Board of Certified Energy Practitioners (NABCEP)
2169	2169	17 Installer Certificate for Solar PV; (ii) an Underwriters
2170	2170	18 Laboratories (UL) PV Systems Installer Certificate; (iii)
2171	2171	19 an Electronics Technicians Association, International
2172	2172	20 (ETAI) Level 3 PV Installer Certificate; or (iv) an
2173	2173	21 Associate in Applied Science degree from an Illinois
2174	2174	22 Community College Board approved community college program
2175	2175	23 in renewable energy or a distributed generation
2176	2176	24 technology.
2177	2177	25 For the purposes of this paragraph (1), "directly
2178	2178	26 supervised" means that there is a qualified person who
2179	2179
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184	SB3997 - 60 - LRB103 43686 LNS 77044 b
2185	2185
2186	2186
2187	2187	SB3997- 61 -LRB103 43686 LNS 77044 b SB3997 - 61 - LRB103 43686 LNS 77044 b
2188	2188	SB3997 - 61 - LRB103 43686 LNS 77044 b
2189	2189	1 meets the qualifications under clause (A) of this
2190	2190	2 paragraph (1) and who is available for supervision and
2191	2191	3 consultation regarding the work performed by persons under
2192	2192	4 clause (B) of this paragraph (1), including a final
2193	2193	5 inspection of the installation work that has been directly
2194	2194	6 supervised to ensure safety and conformity with applicable
2195	2195	7 codes.
2196	2196	8 For the purposes of this paragraph (1), "install"
2197	2197	9 means the major activities and actions required to
2198	2198	10 connect, in accordance with applicable building and
2199	2199	11 electrical codes, the conductors, connectors, and all
2200	2200	12 associated fittings, devices, power outlets, or
2201	2201	13 apparatuses mounted at the premises that are directly
2202	2202	14 involved in delivering energy to the premises' electrical
2203	2203	15 wiring from the photovoltaics, including, but not limited
2204	2204	16 to, to distributed photovoltaic generation.
2205	2205	17 The renewable energy credits procured pursuant to the
2206	2206	18 supplemental procurement plan shall be procured using up
2207	2207	19 to $30,000,000 from the Illinois Power Agency Renewable
2208	2208	20 Energy Resources Fund. The Agency shall not plan to use
2209	2209	21 funds from the Illinois Power Agency Renewable Energy
2210	2210	22 Resources Fund in excess of the monies on deposit in such
2211	2211	23 fund or projected to be deposited into such fund. The
2212	2212	24 supplemental procurement plan shall ensure adequate,
2213	2213	25 reliable, affordable, efficient, and environmentally
2214	2214	26 sustainable renewable energy resources (including credits)
2215	2215
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220	SB3997 - 61 - LRB103 43686 LNS 77044 b
2221	2221
2222	2222
2223	2223	SB3997- 62 -LRB103 43686 LNS 77044 b SB3997 - 62 - LRB103 43686 LNS 77044 b
2224	2224	SB3997 - 62 - LRB103 43686 LNS 77044 b
2225	2225	1 at the lowest total cost over time, taking into account
2226	2226	2 any benefits of price stability.
2227	2227	3 To the extent available, 50% of the renewable energy
2228	2228	4 credits procured from distributed renewable energy
2229	2229	5 generation shall come from devices of less than 25
2230	2230	6 kilowatts in nameplate capacity. Procurement of renewable
2231	2231	7 energy credits from distributed renewable energy
2232	2232	8 generation devices shall be done through multi-year
2233	2233	9 contracts of no less than 5 years. The Agency shall create
2234	2234	10 credit requirements for counterparties. In order to
2235	2235	11 minimize the administrative burden on contracting
2236	2236	12 entities, the Agency shall solicit the use of third
2237	2237	13 parties to aggregate distributed renewable energy. These
2238	2238	14 third parties shall enter into and administer contracts
2239	2239	15 with individual distributed renewable energy generation
2240	2240	16 device owners. An individual distributed renewable energy
2241	2241	17 generation device owner shall have the ability to measure
2242	2242	18 the output of his or her distributed renewable energy
2243	2243	19 generation device.
2244	2244	20 In developing the supplemental procurement plan, the
2245	2245	21 Agency shall hold at least one workshop open to the public
2246	2246	22 within 90 days after June 30, 2014 (the effective date of
2247	2247	23 Public Act 98-672) and shall consider any comments made by
2248	2248	24 stakeholders or the public. Upon development of the
2249	2249	25 supplemental procurement plan within this 90-day period,
2250	2250	26 copies of the supplemental procurement plan shall be
2251	2251
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256	SB3997 - 62 - LRB103 43686 LNS 77044 b
2257	2257
2258	2258
2259	2259	SB3997- 63 -LRB103 43686 LNS 77044 b SB3997 - 63 - LRB103 43686 LNS 77044 b
2260	2260	SB3997 - 63 - LRB103 43686 LNS 77044 b
2261	2261	1 posted and made publicly available on the Agency's and
2262	2262	2 Commission's websites. All interested parties shall have
2263	2263	3 14 days following the date of posting to provide comment
2264	2264	4 to the Agency on the supplemental procurement plan. All
2265	2265	5 comments submitted to the Agency shall be specific,
2266	2266	6 supported by data or other detailed analyses, and, if
2267	2267	7 objecting to all or a portion of the supplemental
2268	2268	8 procurement plan, accompanied by specific alternative
2269	2269	9 wording or proposals. All comments shall be posted on the
2270	2270	10 Agency's and Commission's websites. Within 14 days
2271	2271	11 following the end of the 14-day review period, the Agency
2272	2272	12 shall revise the supplemental procurement plan as
2273	2273	13 necessary based on the comments received and file its
2274	2274	14 revised supplemental procurement plan with the Commission
2275	2275	15 for approval.
2276	2276	16 (2) Within 5 days after the filing of the supplemental
2277	2277	17 procurement plan at the Commission, any person objecting
2278	2278	18 to the supplemental procurement plan shall file an
2279	2279	19 objection with the Commission. Within 10 days after the
2280	2280	20 filing, the Commission shall determine whether a hearing
2281	2281	21 is necessary. The Commission shall enter its order
2282	2282	22 confirming or modifying the supplemental procurement plan
2283	2283	23 within 90 days after the filing of the supplemental
2284	2284	24 procurement plan by the Agency.
2285	2285	25 (3) The Commission shall approve the supplemental
2286	2286	26 procurement plan of renewable energy credits to be
2287	2287
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292	SB3997 - 63 - LRB103 43686 LNS 77044 b
2293	2293
2294	2294
2295	2295	SB3997- 64 -LRB103 43686 LNS 77044 b SB3997 - 64 - LRB103 43686 LNS 77044 b
2296	2296	SB3997 - 64 - LRB103 43686 LNS 77044 b
2297	2297	1 procured from new or existing photovoltaics, including,
2298	2298	2 but not limited to, distributed photovoltaic generation,
2299	2299	3 if the Commission determines that it will ensure adequate,
2300	2300	4 reliable, affordable, efficient, and environmentally
2301	2301	5 sustainable electric service in the form of renewable
2302	2302	6 energy credits at the lowest total cost over time, taking
2303	2303	7 into account any benefits of price stability.
2304	2304	8 (4) The supplemental procurement process under this
2305	2305	9 subsection (i) shall include each of the following
2306	2306	10 components:
2307	2307	11 (A) Procurement administrator. The Agency may
2308	2308	12 retain a procurement administrator in the manner set
2309	2309	13 forth in item (2) of subsection (a) of Section 1-75 of
2310	2310	14 this Act to conduct the supplemental procurement or
2311	2311	15 may elect to use the same procurement administrator
2312	2312	16 administering the Agency's annual procurement under
2313	2313	17 Section 1-75.
2314	2314	18 (B) Procurement monitor. The procurement monitor
2315	2315	19 retained by the Commission pursuant to Section
2316	2316	20 16-111.5 of the Public Utilities Act shall:
2317	2317	21 (i) monitor interactions among the procurement
2318	2318	22 administrator and bidders and suppliers;
2319	2319	23 (ii) monitor and report to the Commission on
2320	2320	24 the progress of the supplemental procurement
2321	2321	25 process;
2322	2322	26 (iii) provide an independent confidential
2323	2323
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328	SB3997 - 64 - LRB103 43686 LNS 77044 b
2329	2329
2330	2330
2331	2331	SB3997- 65 -LRB103 43686 LNS 77044 b SB3997 - 65 - LRB103 43686 LNS 77044 b
2332	2332	SB3997 - 65 - LRB103 43686 LNS 77044 b
2333	2333	1 report to the Commission regarding the results of
2334	2334	2 the procurement events;
2335	2335	3 (iv) assess compliance with the procurement
2336	2336	4 plan approved by the Commission for the
2337	2337	5 supplemental procurement process;
2338	2338	6 (v) preserve the confidentiality of supplier
2339	2339	7 and bidding information in a manner consistent
2340	2340	8 with all applicable laws, rules, regulations, and
2341	2341	9 tariffs;
2342	2342	10 (vi) provide expert advice to the Commission
2343	2343	11 and consult with the procurement administrator
2344	2344	12 regarding issues related to procurement process
2345	2345	13 design, rules, protocols, and policy-related
2346	2346	14 matters;
2347	2347	15 (vii) consult with the procurement
2348	2348	16 administrator regarding the development and use of
2349	2349	17 benchmark criteria, standard form contracts,
2350	2350	18 credit policies, and bid documents; and
2351	2351	19 (viii) perform, with respect to the
2352	2352	20 supplemental procurement process, any other
2353	2353	21 procurement monitor duties specifically delineated
2354	2354	22 within subsection (i) of this Section.
2355	2355	23 (C) Solicitation, prequalification, and
2356	2356	24 registration of bidders. The procurement administrator
2357	2357	25 shall disseminate information to potential bidders to
2358	2358	26 promote a procurement event, notify potential bidders
2359	2359
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364	SB3997 - 65 - LRB103 43686 LNS 77044 b
2365	2365
2366	2366
2367	2367	SB3997- 66 -LRB103 43686 LNS 77044 b SB3997 - 66 - LRB103 43686 LNS 77044 b
2368	2368	SB3997 - 66 - LRB103 43686 LNS 77044 b
2369	2369	1 that the procurement administrator may enter into a
2370	2370	2 post-bid price negotiation with bidders that meet the
2371	2371	3 applicable benchmarks, provide supply requirements,
2372	2372	4 and otherwise explain the competitive procurement
2373	2373	5 process. In addition to such other publication as the
2374	2374	6 procurement administrator determines is appropriate,
2375	2375	7 this information shall be posted on the Agency's and
2376	2376	8 the Commission's websites. The procurement
2377	2377	9 administrator shall also administer the
2378	2378	10 prequalification process, including evaluation of
2379	2379	11 credit worthiness, compliance with procurement rules,
2380	2380	12 and agreement to the standard form contract developed
2381	2381	13 pursuant to item (D) of this paragraph (4). The
2382	2382	14 procurement administrator shall then identify and
2383	2383	15 register bidders to participate in the procurement
2384	2384	16 event.
2385	2385	17 (D) Standard contract forms and credit terms and
2386	2386	18 instruments. The procurement administrator, in
2387	2387	19 consultation with the Agency, the Commission, and
2388	2388	20 other interested parties and subject to Commission
2389	2389	21 oversight, shall develop and provide standard contract
2390	2390	22 forms for the supplier contracts that meet generally
2391	2391	23 accepted industry practices as well as include any
2392	2392	24 applicable State of Illinois terms and conditions that
2393	2393	25 are required for contracts entered into by an agency
2394	2394	26 of the State of Illinois. Standard credit terms and
2395	2395
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400	SB3997 - 66 - LRB103 43686 LNS 77044 b
2401	2401
2402	2402
2403	2403	SB3997- 67 -LRB103 43686 LNS 77044 b SB3997 - 67 - LRB103 43686 LNS 77044 b
2404	2404	SB3997 - 67 - LRB103 43686 LNS 77044 b
2405	2405	1 instruments that meet generally accepted industry
2406	2406	2 practices shall be similarly developed. Contracts for
2407	2407	3 new photovoltaics shall include a provision attesting
2408	2408	4 that the supplier will use a qualified person for the
2409	2409	5 installation of the device pursuant to paragraph (1)
2410	2410	6 of subsection (i) of this Section. The procurement
2411	2411	7 administrator shall make available to the Commission
2412	2412	8 all written comments it receives on the contract
2413	2413	9 forms, credit terms, or instruments. If the
2414	2414	10 procurement administrator cannot reach agreement with
2415	2415	11 the parties as to the contract terms and conditions,
2416	2416	12 the procurement administrator must notify the
2417	2417	13 Commission of any disputed terms and the Commission
2418	2418	14 shall resolve the dispute. The terms of the contracts
2419	2419	15 shall not be subject to negotiation by winning
2420	2420	16 bidders, and the bidders must agree to the terms of the
2421	2421	17 contract in advance so that winning bids are selected
2422	2422	18 solely on the basis of price.
2423	2423	19 (E) Requests for proposals; competitive
2424	2424	20 procurement process. The procurement administrator
2425	2425	21 shall design and issue requests for proposals to
2426	2426	22 supply renewable energy credits in accordance with the
2427	2427	23 supplemental procurement plan, as approved by the
2428	2428	24 Commission. The requests for proposals shall set forth
2429	2429	25 a procedure for sealed, binding commitment bidding
2430	2430	26 with pay-as-bid settlement, and provision for
2431	2431
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436	SB3997 - 67 - LRB103 43686 LNS 77044 b
2437	2437
2438	2438
2439	2439	SB3997- 68 -LRB103 43686 LNS 77044 b SB3997 - 68 - LRB103 43686 LNS 77044 b
2440	2440	SB3997 - 68 - LRB103 43686 LNS 77044 b
2441	2441	1 selection of bids on the basis of price, provided,
2442	2442	2 however, that no bid shall be accepted if it exceeds
2443	2443	3 the benchmark developed pursuant to item (F) of this
2444	2444	4 paragraph (4).
2445	2445	5 (F) Benchmarks. Benchmarks for each product to be
2446	2446	6 procured shall be developed by the procurement
2447	2447	7 administrator in consultation with Commission staff,
2448	2448	8 the Agency, and the procurement monitor for use in
2449	2449	9 this supplemental procurement.
2450	2450	10 (G) A plan for implementing contingencies in the
2451	2451	11 event of supplier default, Commission rejection of
2452	2452	12 results, or any other cause.
2453	2453	13 (5) Within 2 business days after opening the sealed
2454	2454	14 bids, the procurement administrator shall submit a
2455	2455	15 confidential report to the Commission. The report shall
2456	2456	16 contain the results of the bidding for each of the
2457	2457	17 products along with the procurement administrator's
2458	2458	18 recommendation for the acceptance and rejection of bids
2459	2459	19 based on the price benchmark criteria and other factors
2460	2460	20 observed in the process. The procurement monitor also
2461	2461	21 shall submit a confidential report to the Commission
2462	2462	22 within 2 business days after opening the sealed bids. The
2463	2463	23 report shall contain the procurement monitor's assessment
2464	2464	24 of bidder behavior in the process as well as an assessment
2465	2465	25 of the procurement administrator's compliance with the
2466	2466	26 procurement process and rules. The Commission shall review
2467	2467
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472	SB3997 - 68 - LRB103 43686 LNS 77044 b
2473	2473
2474	2474
2475	2475	SB3997- 69 -LRB103 43686 LNS 77044 b SB3997 - 69 - LRB103 43686 LNS 77044 b
2476	2476	SB3997 - 69 - LRB103 43686 LNS 77044 b
2477	2477	1 the confidential reports submitted by the procurement
2478	2478	2 administrator and procurement monitor and shall accept or
2479	2479	3 reject the recommendations of the procurement
2480	2480	4 administrator within 2 business days after receipt of the
2481	2481	5 reports.
2482	2482	6 (6) Within 3 business days after the Commission
2483	2483	7 decision approving the results of a procurement event, the
2484	2484	8 Agency shall enter into binding contractual arrangements
2485	2485	9 with the winning suppliers using the standard form
2486	2486	10 contracts.
2487	2487	11 (7) The names of the successful bidders and the
2488	2488	12 average of the winning bid prices for each contract type
2489	2489	13 and for each contract term shall be made available to the
2490	2490	14 public within 2 days after the supplemental procurement
2491	2491	15 event. The Commission, the procurement monitor, the
2492	2492	16 procurement administrator, the Agency, and all
2493	2493	17 participants in the procurement process shall maintain the
2494	2494	18 confidentiality of all other supplier and bidding
2495	2495	19 information in a manner consistent with all applicable
2496	2496	20 laws, rules, regulations, and tariffs. Confidential
2497	2497	21 information, including the confidential reports submitted
2498	2498	22 by the procurement administrator and procurement monitor
2499	2499	23 pursuant to this Section, shall not be made publicly
2500	2500	24 available and shall not be discoverable by any party in
2501	2501	25 any proceeding, absent a compelling demonstration of need,
2502	2502	26 nor shall those reports be admissible in any proceeding
2503	2503
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508	SB3997 - 69 - LRB103 43686 LNS 77044 b
2509	2509
2510	2510
2511	2511	SB3997- 70 -LRB103 43686 LNS 77044 b SB3997 - 70 - LRB103 43686 LNS 77044 b
2512	2512	SB3997 - 70 - LRB103 43686 LNS 77044 b
2513	2513	1 other than one for law enforcement purposes.
2514	2514	2 (8) The supplemental procurement provided in this
2515	2515	3 subsection (i) shall not be subject to the requirements
2516	2516	4 and limitations of subsections (c) and (d) of this
2517	2517	5 Section.
2518	2518	6 (9) Expenses incurred in connection with the
2519	2519	7 procurement process held pursuant to this Section,
2520	2520	8 including, but not limited to, the cost of developing the
2521	2521	9 supplemental procurement plan, the procurement
2522	2522	10 administrator, procurement monitor, and the cost of the
2523	2523	11 retirement of renewable energy credits purchased pursuant
2524	2524	12 to the supplemental procurement shall be paid for from the
2525	2525	13 Illinois Power Agency Renewable Energy Resources Fund. The
2526	2526	14 Agency shall enter into an interagency agreement with the
2527	2527	15 Commission to reimburse the Commission for its costs
2528	2528	16 associated with the procurement monitor for the
2529	2529	17 supplemental procurement process.
2530	2530	18 (Source: P.A. 102-662, eff. 9-15-21; 103-188, eff. 6-30-23;
2531	2531	19 103-605, eff. 7-1-24.)
2532	2532	20 (20 ILCS 3855/1-75)
2533	2533	21 Sec. 1-75. Planning and Procurement Bureau. The Planning
2534	2534	22 and Procurement Bureau has the following duties and
2535	2535	23 responsibilities:
2536	2536	24 (a) The Planning and Procurement Bureau shall each year,
2537	2537	25 beginning in 2008, develop procurement plans and conduct
2538	2538
2539	2539
2540	2540
2541	2541
2542	2542
2543	2543	SB3997 - 70 - LRB103 43686 LNS 77044 b
2544	2544
2545	2545
2546	2546	SB3997- 71 -LRB103 43686 LNS 77044 b SB3997 - 71 - LRB103 43686 LNS 77044 b
2547	2547	SB3997 - 71 - LRB103 43686 LNS 77044 b
2548	2548	1 competitive procurement processes in accordance with the
2549	2549	2 requirements of Section 16-111.5 of the Public Utilities Act
2550	2550	3 for the eligible retail customers of electric utilities that
2551	2551	4 on December 31, 2005 provided electric service to at least
2552	2552	5 100,000 customers in Illinois. Beginning with the delivery
2553	2553	6 year commencing on June 1, 2017, the Planning and Procurement
2554	2554	7 Bureau shall develop plans and processes for the procurement
2555	2555	8 of zero emission credits from zero emission facilities in
2556	2556	9 accordance with the requirements of subsection (d-5) of this
2557	2557	10 Section. Beginning on the effective date of this amendatory
2558	2558	11 Act of the 102nd General Assembly, the Planning and
2559	2559	12 Procurement Bureau shall develop plans and processes for the
2560	2560	13 procurement of carbon mitigation credits from carbon-free
2561	2561	14 energy resources in accordance with the requirements of
2562	2562	15 subsection (d-10) of this Section. The Planning and
2563	2563	16 Procurement Bureau shall also develop procurement plans and
2564	2564	17 conduct competitive procurement processes in accordance with
2565	2565	18 the requirements of Section 16-111.5 of the Public Utilities
2566	2566	19 Act for the eligible retail customers of small
2567	2567	20 multi-jurisdictional electric utilities that (i) on December
2568	2568	21 31, 2005 served less than 100,000 customers in Illinois and
2569	2569	22 (ii) request a procurement plan for their Illinois
2570	2570	23 jurisdictional load. This Section shall not apply to a small
2571	2571	24 multi-jurisdictional utility until such time as a small
2572	2572	25 multi-jurisdictional utility requests the Agency to prepare a
2573	2573	26 procurement plan for their Illinois jurisdictional load. For
2574	2574
2575	2575
2576	2576
2577	2577
2578	2578
2579	2579	SB3997 - 71 - LRB103 43686 LNS 77044 b
2580	2580
2581	2581
2582	2582	SB3997- 72 -LRB103 43686 LNS 77044 b SB3997 - 72 - LRB103 43686 LNS 77044 b
2583	2583	SB3997 - 72 - LRB103 43686 LNS 77044 b
2584	2584	1 the purposes of this Section, the term "eligible retail
2585	2585	2 customers" has the same definition as found in Section
2586	2586	3 16-111.5(a) of the Public Utilities Act.
2587	2587	4 Beginning with the plan or plans to be implemented in the
2588	2588	5 2017 delivery year, the Agency shall no longer include the
2589	2589	6 procurement of renewable energy resources in the annual
2590	2590	7 procurement plans required by this subsection (a), except as
2591	2591	8 provided in subsection (q) of Section 16-111.5 of the Public
2592	2592	9 Utilities Act, and shall instead develop a long-term renewable
2593	2593	10 resources procurement plan in accordance with subsection (c)
2594	2594	11 of this Section and Section 16-111.5 of the Public Utilities
2595	2595	12 Act.
2596	2596	13 In accordance with subsection (c-5) of this Section, the
2597	2597	14 Planning and Procurement Bureau shall oversee the procurement
2598	2598	15 by electric utilities that served more than 300,000 retail
2599	2599	16 customers in this State as of January 1, 2019 of renewable
2600	2600	17 energy credits from new utility-scale solar projects to be
2601	2601	18 installed, along with energy storage facilities, at or
2602	2602	19 adjacent to the sites of electric generating facilities that,
2603	2603	20 as of January 1, 2016, burned coal as their primary fuel
2604	2604	21 source.
2605	2605	22 (1) The Agency shall each year, beginning in 2008, as
2606	2606	23 needed, issue a request for qualifications for experts or
2607	2607	24 expert consulting firms to develop the procurement plans
2608	2608	25 in accordance with Section 16-111.5 of the Public
2609	2609	26 Utilities Act. In order to qualify an expert or expert
2610	2610
2611	2611
2612	2612
2613	2613
2614	2614
2615	2615	SB3997 - 72 - LRB103 43686 LNS 77044 b
2616	2616
2617	2617
2618	2618	SB3997- 73 -LRB103 43686 LNS 77044 b SB3997 - 73 - LRB103 43686 LNS 77044 b
2619	2619	SB3997 - 73 - LRB103 43686 LNS 77044 b
2620	2620	1 consulting firm must have:
2621	2621	2 (A) direct previous experience assembling
2622	2622	3 large-scale power supply plans or portfolios for
2623	2623	4 end-use customers;
2624	2624	5 (B) an advanced degree in economics, mathematics,
2625	2625	6 engineering, risk management, or a related area of
2626	2626	7 study;
2627	2627	8 (C) 10 years of experience in the electricity
2628	2628	9 sector, including managing supply risk;
2629	2629	10 (D) expertise in wholesale electricity market
2630	2630	11 rules, including those established by the Federal
2631	2631	12 Energy Regulatory Commission and regional transmission
2632	2632	13 organizations;
2633	2633	14 (E) expertise in credit protocols and familiarity
2634	2634	15 with contract protocols;
2635	2635	16 (F) adequate resources to perform and fulfill the
2636	2636	17 required functions and responsibilities; and
2637	2637	18 (G) the absence of a conflict of interest and
2638	2638	19 inappropriate bias for or against potential bidders or
2639	2639	20 the affected electric utilities.
2640	2640	21 (2) The Agency shall each year, as needed, issue a
2641	2641	22 request for qualifications for a procurement administrator
2642	2642	23 to conduct the competitive procurement processes in
2643	2643	24 accordance with Section 16-111.5 of the Public Utilities
2644	2644	25 Act. In order to qualify an expert or expert consulting
2645	2645	26 firm must have:
2646	2646
2647	2647
2648	2648
2649	2649
2650	2650
2651	2651	SB3997 - 73 - LRB103 43686 LNS 77044 b
2652	2652
2653	2653
2654	2654	SB3997- 74 -LRB103 43686 LNS 77044 b SB3997 - 74 - LRB103 43686 LNS 77044 b
2655	2655	SB3997 - 74 - LRB103 43686 LNS 77044 b
2656	2656	1 (A) direct previous experience administering a
2657	2657	2 large-scale competitive procurement process;
2658	2658	3 (B) an advanced degree in economics, mathematics,
2659	2659	4 engineering, or a related area of study;
2660	2660	5 (C) 10 years of experience in the electricity
2661	2661	6 sector, including risk management experience;
2662	2662	7 (D) expertise in wholesale electricity market
2663	2663	8 rules, including those established by the Federal
2664	2664	9 Energy Regulatory Commission and regional transmission
2665	2665	10 organizations;
2666	2666	11 (E) expertise in credit and contract protocols;
2667	2667	12 (F) adequate resources to perform and fulfill the
2668	2668	13 required functions and responsibilities; and
2669	2669	14 (G) the absence of a conflict of interest and
2670	2670	15 inappropriate bias for or against potential bidders or
2671	2671	16 the affected electric utilities.
2672	2672	17 (3) The Agency shall provide affected utilities and
2673	2673	18 other interested parties with the lists of qualified
2674	2674	19 experts or expert consulting firms identified through the
2675	2675	20 request for qualifications processes that are under
2676	2676	21 consideration to develop the procurement plans and to
2677	2677	22 serve as the procurement administrator. The Agency shall
2678	2678	23 also provide each qualified expert's or expert consulting
2679	2679	24 firm's response to the request for qualifications. All
2680	2680	25 information provided under this subparagraph shall also be
2681	2681	26 provided to the Commission. The Agency may provide by rule
2682	2682
2683	2683
2684	2684
2685	2685
2686	2686
2687	2687	SB3997 - 74 - LRB103 43686 LNS 77044 b
2688	2688
2689	2689
2690	2690	SB3997- 75 -LRB103 43686 LNS 77044 b SB3997 - 75 - LRB103 43686 LNS 77044 b
2691	2691	SB3997 - 75 - LRB103 43686 LNS 77044 b
2692	2692	1 for fees associated with supplying the information to
2693	2693	2 utilities and other interested parties. These parties
2694	2694	3 shall, within 5 business days, notify the Agency in
2695	2695	4 writing if they object to any experts or expert consulting
2696	2696	5 firms on the lists. Objections shall be based on:
2697	2697	6 (A) failure to satisfy qualification criteria;
2698	2698	7 (B) identification of a conflict of interest; or
2699	2699	8 (C) evidence of inappropriate bias for or against
2700	2700	9 potential bidders or the affected utilities.
2701	2701	10 The Agency shall remove experts or expert consulting
2702	2702	11 firms from the lists within 10 days if there is a
2703	2703	12 reasonable basis for an objection and provide the updated
2704	2704	13 lists to the affected utilities and other interested
2705	2705	14 parties. If the Agency fails to remove an expert or expert
2706	2706	15 consulting firm from a list, an objecting party may seek
2707	2707	16 review by the Commission within 5 days thereafter by
2708	2708	17 filing a petition, and the Commission shall render a
2709	2709	18 ruling on the petition within 10 days. There is no right of
2710	2710	19 appeal of the Commission's ruling.
2711	2711	20 (4) The Agency shall issue requests for proposals to
2712	2712	21 the qualified experts or expert consulting firms to
2713	2713	22 develop a procurement plan for the affected utilities and
2714	2714	23 to serve as procurement administrator.
2715	2715	24 (5) The Agency shall select an expert or expert
2716	2716	25 consulting firm to develop procurement plans based on the
2717	2717	26 proposals submitted and shall award contracts of up to 5
2718	2718
2719	2719
2720	2720
2721	2721
2722	2722
2723	2723	SB3997 - 75 - LRB103 43686 LNS 77044 b
2724	2724
2725	2725
2726	2726	SB3997- 76 -LRB103 43686 LNS 77044 b SB3997 - 76 - LRB103 43686 LNS 77044 b
2727	2727	SB3997 - 76 - LRB103 43686 LNS 77044 b
2728	2728	1 years to those selected.
2729	2729	2 (6) The Agency shall select an expert or expert
2730	2730	3 consulting firm, with approval of the Commission, to serve
2731	2731	4 as procurement administrator based on the proposals
2732	2732	5 submitted. If the Commission rejects, within 5 days, the
2733	2733	6 Agency's selection, the Agency shall submit another
2734	2734	7 recommendation within 3 days based on the proposals
2735	2735	8 submitted. The Agency shall award a 5-year contract to the
2736	2736	9 expert or expert consulting firm so selected with
2737	2737	10 Commission approval.
2738	2738	11 (b) The experts or expert consulting firms retained by the
2739	2739	12 Agency shall, as appropriate, prepare procurement plans, and
2740	2740	13 conduct a competitive procurement process as prescribed in
2741	2741	14 Section 16-111.5 of the Public Utilities Act, to ensure
2742	2742	15 adequate, reliable, affordable, efficient, and environmentally
2743	2743	16 sustainable electric service at the lowest total cost over
2744	2744	17 time, taking into account any benefits of price stability, for
2745	2745	18 eligible retail customers of electric utilities that on
2746	2746	19 December 31, 2005 provided electric service to at least
2747	2747	20 100,000 customers in the State of Illinois, and for eligible
2748	2748	21 Illinois retail customers of small multi-jurisdictional
2749	2749	22 electric utilities that (i) on December 31, 2005 served less
2750	2750	23 than 100,000 customers in Illinois and (ii) request a
2751	2751	24 procurement plan for their Illinois jurisdictional load.
2752	2752	25 (c) Renewable portfolio standard.
2753	2753	26 (1)(A) The Agency shall develop a long-term renewable
2754	2754
2755	2755
2756	2756
2757	2757
2758	2758
2759	2759	SB3997 - 76 - LRB103 43686 LNS 77044 b
2760	2760
2761	2761
2762	2762	SB3997- 77 -LRB103 43686 LNS 77044 b SB3997 - 77 - LRB103 43686 LNS 77044 b
2763	2763	SB3997 - 77 - LRB103 43686 LNS 77044 b
2764	2764	1 resources procurement plan that shall include procurement
2765	2765	2 programs and competitive procurement events necessary to
2766	2766	3 meet the goals set forth in this subsection (c). The
2767	2767	4 initial long-term renewable resources procurement plan
2768	2768	5 shall be released for comment no later than 160 days after
2769	2769	6 June 1, 2017 (the effective date of Public Act 99-906).
2770	2770	7 The Agency shall review, and may revise on an expedited
2771	2771	8 basis, the long-term renewable resources procurement plan
2772	2772	9 at least every 2 years, which shall be conducted in
2773	2773	10 conjunction with the procurement plan under Section
2774	2774	11 16-111.5 of the Public Utilities Act to the extent
2775	2775	12 practicable to minimize administrative expense. No later
2776	2776	13 than 120 days after the effective date of this amendatory
2777	2777	14 Act of the 103rd General Assembly, the Agency shall
2778	2778	15 release for comment a revision to the long-term renewable
2779	2779	16 resources procurement plan, updating elements of the most
2780	2780	17 recently approved plan as needed to comply with this
2781	2781	18 amendatory Act of the 103rd General Assembly, and any
2782	2782	19 long-term renewable resources procurement plan update
2783	2783	20 published by the Agency but not yet approved by the
2784	2784	21 Illinois Commerce Commission shall be withdrawn. The
2785	2785	22 long-term renewable resources procurement plans shall be
2786	2786	23 subject to review and approval by the Commission under
2787	2787	24 Section 16-111.5 of the Public Utilities Act.
2788	2788	25 (B) Subject to subparagraph (F) of this paragraph (1),
2789	2789	26 the long-term renewable resources procurement plan shall
2790	2790
2791	2791
2792	2792
2793	2793
2794	2794
2795	2795	SB3997 - 77 - LRB103 43686 LNS 77044 b
2796	2796
2797	2797
2798	2798	SB3997- 78 -LRB103 43686 LNS 77044 b SB3997 - 78 - LRB103 43686 LNS 77044 b
2799	2799	SB3997 - 78 - LRB103 43686 LNS 77044 b
2800	2800	1 attempt to meet the goals for procurement of renewable
2801	2801	2 energy credits at levels of at least the following overall
2802	2802	3 percentages: 13% by the 2017 delivery year; increasing by
2803	2803	4 at least 1.5% each delivery year thereafter to at least
2804	2804	5 25% by the 2025 delivery year; increasing by at least 3%
2805	2805	6 each delivery year thereafter to at least 40% by the 2030
2806	2806	7 delivery year, and continuing at no less than 40% for each
2807	2807	8 delivery year thereafter. The Agency shall attempt to
2808	2808	9 procure 50% by delivery year 2040. The Agency shall
2809	2809	10 determine the annual increase between delivery year 2030
2810	2810	11 and delivery year 2040, if any, taking into account energy
2811	2811	12 demand, other energy resources, and other public policy
2812	2812	13 goals. In the event of a conflict between these goals and
2813	2813	14 the new wind, new photovoltaic, and hydropower procurement
2814	2814	15 requirements described in items (i) through (iii) of
2815	2815	16 subparagraph (C) of this paragraph (1), the long-term plan
2816	2816	17 shall prioritize compliance with the new wind, new
2817	2817	18 photovoltaic, and hydropower procurement requirements
2818	2818	19 described in items (i) through (iii) of subparagraph (C)
2819	2819	20 of this paragraph (1) over the annual percentage targets
2820	2820	21 described in this subparagraph (B). The Agency shall not
2821	2821	22 comply with the annual percentage targets described in
2822	2822	23 this subparagraph (B) by procuring renewable energy
2823	2823	24 credits that are unlikely to lead to the development of
2824	2824	25 new renewable resources or new, modernized, or retooled
2825	2825	26 hydropower facilities.
2826	2826
2827	2827
2828	2828
2829	2829
2830	2830
2831	2831	SB3997 - 78 - LRB103 43686 LNS 77044 b
2832	2832
2833	2833
2834	2834	SB3997- 79 -LRB103 43686 LNS 77044 b SB3997 - 79 - LRB103 43686 LNS 77044 b
2835	2835	SB3997 - 79 - LRB103 43686 LNS 77044 b
2836	2836	1 For the delivery year beginning June 1, 2017, the
2837	2837	2 procurement plan shall attempt to include, subject to the
2838	2838	3 prioritization outlined in this subparagraph (B),
2839	2839	4 cost-effective renewable energy resources equal to at
2840	2840	5 least 13% of each utility's load for eligible retail
2841	2841	6 customers and 13% of the applicable portion of each
2842	2842	7 utility's load for retail customers who are not eligible
2843	2843	8 retail customers, which applicable portion shall equal 50%
2844	2844	9 of the utility's load for retail customers who are not
2845	2845	10 eligible retail customers on February 28, 2017.
2846	2846	11 For the delivery year beginning June 1, 2018, the
2847	2847	12 procurement plan shall attempt to include, subject to the
2848	2848	13 prioritization outlined in this subparagraph (B),
2849	2849	14 cost-effective renewable energy resources equal to at
2850	2850	15 least 14.5% of each utility's load for eligible retail
2851	2851	16 customers and 14.5% of the applicable portion of each
2852	2852	17 utility's load for retail customers who are not eligible
2853	2853	18 retail customers, which applicable portion shall equal 75%
2854	2854	19 of the utility's load for retail customers who are not
2855	2855	20 eligible retail customers on February 28, 2017.
2856	2856	21 For the delivery year beginning June 1, 2019, and for
2857	2857	22 each year thereafter, the procurement plans shall attempt
2858	2858	23 to include, subject to the prioritization outlined in this
2859	2859	24 subparagraph (B), cost-effective renewable energy
2860	2860	25 resources equal to a minimum percentage of each utility's
2861	2861	26 load for all retail customers as follows: 16% by June 1,
2862	2862
2863	2863
2864	2864
2865	2865
2866	2866
2867	2867	SB3997 - 79 - LRB103 43686 LNS 77044 b
2868	2868
2869	2869
2870	2870	SB3997- 80 -LRB103 43686 LNS 77044 b SB3997 - 80 - LRB103 43686 LNS 77044 b
2871	2871	SB3997 - 80 - LRB103 43686 LNS 77044 b
2872	2872	1 2019; increasing by 1.5% each year thereafter to 25% by
2873	2873	2 June 1, 2025; and 25% by June 1, 2026; increasing by at
2874	2874	3 least 3% each delivery year thereafter to at least 40% by
2875	2875	4 the 2030 delivery year, and continuing at no less than 40%
2876	2876	5 for each delivery year thereafter. The Agency shall
2877	2877	6 attempt to procure 50% by delivery year 2040. The Agency
2878	2878	7 shall determine the annual increase between delivery year
2879	2879	8 2030 and delivery year 2040, if any, taking into account
2880	2880	9 energy demand, other energy resources, and other public
2881	2881	10 policy goals.
2882	2882	11 For each delivery year, the Agency shall first
2883	2883	12 recognize each utility's obligations for that delivery
2884	2884	13 year under existing contracts. Any renewable energy
2885	2885	14 credits under existing contracts, including renewable
2886	2886	15 energy credits as part of renewable energy resources,
2887	2887	16 shall be used to meet the goals set forth in this
2888	2888	17 subsection (c) for the delivery year.
2889	2889	18 (C) The long-term renewable resources procurement plan
2890	2890	19 described in subparagraph (A) of this paragraph (1) shall
2891	2891	20 include the procurement of renewable energy credits from
2892	2892	21 new projects pursuant to the following terms:
2893	2893	22 (i) At least 10,000,000 renewable energy credits
2894	2894	23 delivered annually by the end of the 2021 delivery
2895	2895	24 year, and increasing ratably to reach 45,000,000
2896	2896	25 renewable energy credits delivered annually from new
2897	2897	26 wind and solar projects, from repowered wind projects,
2898	2898
2899	2899
2900	2900
2901	2901
2902	2902
2903	2903	SB3997 - 80 - LRB103 43686 LNS 77044 b
2904	2904
2905	2905
2906	2906	SB3997- 81 -LRB103 43686 LNS 77044 b SB3997 - 81 - LRB103 43686 LNS 77044 b
2907	2907	SB3997 - 81 - LRB103 43686 LNS 77044 b
2908	2908	1 or from retooled hydropower facilities by the end of
2909	2909	2 delivery year 2030 such that the goals in subparagraph
2910	2910	3 (B) of this paragraph (1) are met entirely by
2911	2911	4 procurements of renewable energy credits from new wind
2912	2912	5 and photovoltaic projects. Of that amount, to the
2913	2913	6 extent possible, the Agency shall endeavor to procure
2914	2914	7 45% from new and repowered wind and hydropower
2915	2915	8 projects and shall procure at least 55% from
2916	2916	9 photovoltaic projects. Of the amount to be procured
2917	2917	10 from photovoltaic projects, the Agency shall procure:
2918	2918	11 at least 50% from solar photovoltaic projects using
2919	2919	12 the program outlined in subparagraph (K) of this
2920	2920	13 paragraph (1) from distributed renewable energy
2921	2921	14 generation devices or community renewable generation
2922	2922	15 projects; at least 47% from utility-scale solar
2923	2923	16 projects; at least 3% from brownfield site
2924	2924	17 photovoltaic projects that are not community renewable
2925	2925	18 generation projects. The Agency may propose
2926	2926	19 adjustments to these percentages, including
2927	2927	20 establishing percentage-based goals for the
2928	2928	21 procurement of renewable energy credits from
2929	2929	22 modernized or retooled hydropower facilities and
2930	2930	23 repowered wind projects, through its long-term
2931	2931	24 renewable resources plan described in subparagraph (A)
2932	2932	25 of this paragraph (1) as necessary based on developer
2933	2933	26 interest, market conditions, budget considerations,
2934	2934
2935	2935
2936	2936
2937	2937
2938	2938
2939	2939	SB3997 - 81 - LRB103 43686 LNS 77044 b
2940	2940
2941	2941
2942	2942	SB3997- 82 -LRB103 43686 LNS 77044 b SB3997 - 82 - LRB103 43686 LNS 77044 b
2943	2943	SB3997 - 82 - LRB103 43686 LNS 77044 b
2944	2944	1 resource adequacy needs, or other factors.
2945	2945	2 In developing the long-term renewable resources
2946	2946	3 procurement plan, the Agency shall consider other
2947	2947	4 approaches, in addition to competitive procurements,
2948	2948	5 that can be used to procure renewable energy credits
2949	2949	6 from brownfield site photovoltaic projects and thereby
2950	2950	7 help return blighted or contaminated land to
2951	2951	8 productive use while enhancing public health and the
2952	2952	9 well-being of Illinois residents, including those in
2953	2953	10 environmental justice communities, as defined using
2954	2954	11 existing methodologies and findings used by the Agency
2955	2955	12 and its Administrator in its Illinois Solar for All
2956	2956	13 Program. The Agency shall also consider other
2957	2957	14 approaches, in addition to competitive procurements,
2958	2958	15 to procure renewable energy credits from new and
2959	2959	16 existing hydropower facilities to support the
2960	2960	17 development and maintenance of these facilities. The
2961	2961	18 Agency shall explore options to convert existing dams
2962	2962	19 but shall not consider approaches to develop new dams
2963	2963	20 where they do not already exist. To encourage the
2964	2964	21 continued operation of utility-scale wind projects,
2965	2965	22 the Agency shall consider and may propose other
2966	2966	23 approaches in addition to competitive procurements to
2967	2967	24 procure renewable energy credits from repowered wind
2968	2968	25 projects.
2969	2969	26 (ii) In any given delivery year, if forecasted
2970	2970
2971	2971
2972	2972
2973	2973
2974	2974
2975	2975	SB3997 - 82 - LRB103 43686 LNS 77044 b
2976	2976
2977	2977
2978	2978	SB3997- 83 -LRB103 43686 LNS 77044 b SB3997 - 83 - LRB103 43686 LNS 77044 b
2979	2979	SB3997 - 83 - LRB103 43686 LNS 77044 b
2980	2980	1 expenses are less than the maximum budget available
2981	2981	2 under subparagraph (E) of this paragraph (1), the
2982	2982	3 Agency shall continue to procure new renewable energy
2983	2983	4 credits until that budget is exhausted in the manner
2984	2984	5 outlined in item (i) of this subparagraph (C).
2985	2985	6 (iii) For purposes of this Section:
2986	2986	7 "New wind projects" means wind renewable energy
2987	2987	8 facilities that are energized after June 1, 2017 for
2988	2988	9 the delivery year commencing June 1, 2017.
2989	2989	10 "New photovoltaic projects" means photovoltaic
2990	2990	11 renewable energy facilities that are energized after
2991	2991	12 June 1, 2017. Photovoltaic projects developed under
2992	2992	13 Section 1-56 of this Act shall not apply towards the
2993	2993	14 new photovoltaic project requirements in this
2994	2994	15 subparagraph (C).
2995	2995	16 "Repowered wind projects" means utility-scale wind
2996	2996	17 projects featuring the replacement or expansion of
2997	2997	18 turbines at an existing project site after the
2998	2998	19 effective date of this amendatory Act of the 103rd
2999	2999	20 General Assembly. Renewable energy credit contract
3000	3000	21 awards used to support repowered wind projects shall
3001	3001	22 only cover the incremental increase in facility
3002	3002	23 electricity production resultant from repowering.
3003	3003	24 For purposes of calculating whether the Agency has
3004	3004	25 procured enough new wind and solar renewable energy
3005	3005	26 credits required by this subparagraph (C), renewable
3006	3006
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011	SB3997 - 83 - LRB103 43686 LNS 77044 b
3012	3012
3013	3013
3014	3014	SB3997- 84 -LRB103 43686 LNS 77044 b SB3997 - 84 - LRB103 43686 LNS 77044 b
3015	3015	SB3997 - 84 - LRB103 43686 LNS 77044 b
3016	3016	1 energy facilities that have a multi-year renewable
3017	3017	2 energy credit delivery contract with the utility
3018	3018	3 through at least delivery year 2030 shall be
3019	3019	4 considered new, however no renewable energy credits
3020	3020	5 from contracts entered into before June 1, 2021 shall
3021	3021	6 be used to calculate whether the Agency has procured
3022	3022	7 the correct proportion of new wind and new solar
3023	3023	8 contracts described in this subparagraph (C) for
3024	3024	9 delivery year 2021 and thereafter.
3025	3025	10 (D) Renewable energy credits shall be cost effective.
3026	3026	11 For purposes of this subsection (c), "cost effective"
3027	3027	12 means that the costs of procuring renewable energy
3028	3028	13 resources do not cause the limit stated in subparagraph
3029	3029	14 (E) of this paragraph (1) to be exceeded and, for
3030	3030	15 renewable energy credits procured through a competitive
3031	3031	16 procurement event, do not exceed benchmarks based on
3032	3032	17 market prices for like products in the region. For
3033	3033	18 purposes of this subsection (c), "like products" means
3034	3034	19 contracts for renewable energy credits from the same or
3035	3035	20 substantially similar technology, same or substantially
3036	3036	21 similar vintage (new or existing), the same or
3037	3037	22 substantially similar quantity, and the same or
3038	3038	23 substantially similar contract length and structure.
3039	3039	24 Benchmarks shall reflect development, financing, or
3040	3040	25 related costs resulting from requirements imposed through
3041	3041	26 other provisions of State law, including, but not limited
3042	3042
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047	SB3997 - 84 - LRB103 43686 LNS 77044 b
3048	3048
3049	3049
3050	3050	SB3997- 85 -LRB103 43686 LNS 77044 b SB3997 - 85 - LRB103 43686 LNS 77044 b
3051	3051	SB3997 - 85 - LRB103 43686 LNS 77044 b
3052	3052	1 to, requirements in subparagraphs (P) and (Q) of this
3053	3053	2 paragraph (1) and the Renewable Energy Facilities
3054	3054	3 Agricultural Impact Mitigation Act. Confidential
3055	3055	4 benchmarks shall be developed by the procurement
3056	3056	5 administrator, in consultation with the Commission staff,
3057	3057	6 Agency staff, and the procurement monitor and shall be
3058	3058	7 subject to Commission review and approval. If price
3059	3059	8 benchmarks for like products in the region are not
3060	3060	9 available, the procurement administrator shall establish
3061	3061	10 price benchmarks based on publicly available data on
3062	3062	11 regional technology costs and expected current and future
3063	3063	12 regional energy prices. The benchmarks in this Section
3064	3064	13 shall not be used to curtail or otherwise reduce
3065	3065	14 contractual obligations entered into by or through the
3066	3066	15 Agency prior to June 1, 2017 (the effective date of Public
3067	3067	16 Act 99-906).
3068	3068	17 (E) For purposes of this subsection (c), the required
3069	3069	18 procurement of cost-effective renewable energy resources
3070	3070	19 for a particular year commencing prior to June 1, 2017
3071	3071	20 shall be measured as a percentage of the actual amount of
3072	3072	21 electricity (megawatt-hours) supplied by the electric
3073	3073	22 utility to eligible retail customers in the delivery year
3074	3074	23 ending immediately prior to the procurement, and, for
3075	3075	24 delivery years commencing on and after June 1, 2017, the
3076	3076	25 required procurement of cost-effective renewable energy
3077	3077	26 resources for a particular year shall be measured as a
3078	3078
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083	SB3997 - 85 - LRB103 43686 LNS 77044 b
3084	3084
3085	3085
3086	3086	SB3997- 86 -LRB103 43686 LNS 77044 b SB3997 - 86 - LRB103 43686 LNS 77044 b
3087	3087	SB3997 - 86 - LRB103 43686 LNS 77044 b
3088	3088	1 percentage of the actual amount of electricity
3089	3089	2 (megawatt-hours) delivered by the electric utility in the
3090	3090	3 delivery year ending immediately prior to the procurement,
3091	3091	4 to all retail customers in its service territory. For
3092	3092	5 purposes of this subsection (c), the amount paid per
3093	3093	6 kilowatthour means the total amount paid for electric
3094	3094	7 service expressed on a per kilowatthour basis. For
3095	3095	8 purposes of this subsection (c), the total amount paid for
3096	3096	9 electric service includes without limitation amounts paid
3097	3097	10 for supply, transmission, capacity, distribution,
3098	3098	11 surcharges, and add-on taxes.
3099	3099	12 Notwithstanding the requirements of this subsection
3100	3100	13 (c), and except as provided in subparagraph (E-5) of
3101	3101	14 paragraph (1) of this subsection (c), the total of
3102	3102	15 renewable energy resources procured under the procurement
3103	3103	16 plan for any single year shall be subject to the
3104	3104	17 limitations of this subparagraph (E). Such procurement
3105	3105	18 shall be reduced for all retail customers based on the
3106	3106	19 amount necessary to limit the annual estimated average net
3107	3107	20 increase due to the costs of these resources included in
3108	3108	21 the amounts paid by eligible retail customers in
3109	3109	22 connection with electric service to no more than 4.25% of
3110	3110	23 the amount paid per kilowatthour by those customers during
3111	3111	24 the year ending May 31, 2009. To arrive at a maximum dollar
3112	3112	25 amount of renewable energy resources to be procured for
3113	3113	26 the particular delivery year, the resulting per
3114	3114
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119	SB3997 - 86 - LRB103 43686 LNS 77044 b
3120	3120
3121	3121
3122	3122	SB3997- 87 -LRB103 43686 LNS 77044 b SB3997 - 87 - LRB103 43686 LNS 77044 b
3123	3123	SB3997 - 87 - LRB103 43686 LNS 77044 b
3124	3124	1 kilowatthour amount shall be applied to the actual amount
3125	3125	2 of kilowatthours of electricity delivered, or applicable
3126	3126	3 portion of such amount as specified in paragraph (1) of
3127	3127	4 this subsection (c), as applicable, by the electric
3128	3128	5 utility in the delivery year immediately prior to the
3129	3129	6 procurement to all retail customers in its service
3130	3130	7 territory. The calculations required by this subparagraph
3131	3131	8 (E) shall be made only once for each delivery year at the
3132	3132	9 time that the renewable energy resources are procured.
3133	3133	10 Once the determination as to the amount of renewable
3134	3134	11 energy resources to procure is made based on the
3135	3135	12 calculations set forth in this subparagraph (E) and the
3136	3136	13 contracts procuring those amounts are executed between the
3137	3137	14 seller and applicable electric utility, no subsequent rate
3138	3138	15 impact determinations shall be made and no adjustments to
3139	3139	16 those contract amounts shall be allowed. As provided in
3140	3140	17 subparagraph (E-5) of paragraph (1) of this subsection
3141	3141	18 (c), the seller shall be entitled to full, prompt, and
3142	3142	19 uninterrupted payment under the applicable contract
3143	3143	20 notwithstanding the application of this subparagraph (E),
3144	3144	21 and all All costs incurred under such contracts shall be
3145	3145	22 fully recoverable by the electric utility as provided in
3146	3146	23 this Section.
3147	3147	24 (E-5) If, for a particular delivery year, the
3148	3148	25 limitation on the amount of renewable energy resources to
3149	3149	26 be procured, as calculated pursuant to subparagraph (E) of
3150	3150
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155	SB3997 - 87 - LRB103 43686 LNS 77044 b
3156	3156
3157	3157
3158	3158	SB3997- 88 -LRB103 43686 LNS 77044 b SB3997 - 88 - LRB103 43686 LNS 77044 b
3159	3159	SB3997 - 88 - LRB103 43686 LNS 77044 b
3160	3160	1 paragraph (1) of this subsection (c), would result in an
3161	3161	2 insufficient collection of funds to fully pay amounts due
3162	3162	3 to a seller under existing contracts executed under this
3163	3163	4 Section or executed under Section 1-56 of this Act, then
3164	3164	5 the following provisions shall apply to ensure full and
3165	3165	6 uninterrupted payment is made to such seller or sellers:
3166	3166	7 (i) If the electric utility has retained unspent
3167	3167	8 funds in an interest-bearing account as prescribed in
3168	3168	9 subsection (k) of Section 16-108 of the Public
3169	3169	10 Utilities Act, then the utility shall use those funds
3170	3170	11 to remit full payment to the sellers to ensure prompt
3171	3171	12 and uninterrupted payment of existing contractual
3172	3172	13 obligation.
3173	3173	14 (ii) If the funds described in item (i) of this
3174	3174	15 subparagraph (E-5) are insufficient to satisfy all
3175	3175	16 existing contractual obligations, then the electric
3176	3176	17 utility shall, nonetheless, remit full payment to the
3177	3177	18 sellers to ensure prompt and uninterrupted payment of
3178	3178	19 existing contractual obligations, and the full payment
3179	3179	20 shall be recoverable by the utility through the
3180	3180	21 utility's automatic adjustment clause tariff
3181	3181	22 authorized and placed into effect under subsection (k)
3182	3182	23 of Section 16-108 of the Public Utilities Act.
3183	3183	24 (iii) The Agency shall promptly notify the
3184	3184	25 Commission that existing contractual obligations are
3185	3185	26 reasonably expected to exceed the maximum collection
3186	3186
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191	SB3997 - 88 - LRB103 43686 LNS 77044 b
3192	3192
3193	3193
3194	3194	SB3997- 89 -LRB103 43686 LNS 77044 b SB3997 - 89 - LRB103 43686 LNS 77044 b
3195	3195	SB3997 - 89 - LRB103 43686 LNS 77044 b
3196	3196	1 authorized under subparagraph (E) of paragraph (1) of
3197	3197	2 this subsection (c) for the applicable delivery year.
3198	3198	3 The Agency shall also explain and confirm how the
3199	3199	4 operation of items (i) and (ii) of this subparagraph
3200	3200	5 (E-5) ensures that the electric utility will continue
3201	3201	6 to make prompt and uninterrupted payment under
3202	3202	7 existing contractual obligations. The Agency shall
3203	3203	8 provide this information to the Commission through a
3204	3204	9 notice filed in the Commission docket approving the
3205	3205	10 Agency's operative Long-Term Renewable Resources
3206	3206	11 Procurement Plan that includes the applicable delivery
3207	3207	12 year.
3208	3208	13 (iv) The Agency shall suspend or reduce new
3209	3209	14 contract awards for the procurement of renewable
3210	3210	15 energy credits until an Agency determination is made
3211	3211	16 under subparagraph (E) that additional procurements
3212	3212	17 would not cause the rate impact limitation of
3213	3213	18 subparagraph (E) to be exceeded. At least once
3214	3214	19 annually after the notice provided for in item (iii)
3215	3215	20 of this subparagraph (E-5) is made, the Agency shall
3216	3216	21 analyze existing contract obligations, projected
3217	3217	22 prices for indexed renewable energy credit contracts
3218	3218	23 executed under item (v) of subparagraph (G) of
3219	3219	24 paragraph (1) of subsection (c) of Section 1-75 of
3220	3220	25 this Act, and expected collections authorized under
3221	3221	26 subparagraph (E) to determine whether and to what
3222	3222
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227	SB3997 - 89 - LRB103 43686 LNS 77044 b
3228	3228
3229	3229
3230	3230	SB3997- 90 -LRB103 43686 LNS 77044 b SB3997 - 90 - LRB103 43686 LNS 77044 b
3231	3231	SB3997 - 90 - LRB103 43686 LNS 77044 b
3232	3232	1 extent the limitations of subparagraph (E) would be
3233	3233	2 exceeded by additional renewable energy credit
3234	3234	3 procurement contract awards.
3235	3235	4 (aa) If the Agency determines that additional
3236	3236	5 renewable energy credit procurement contract
3237	3237	6 awards could be made without exceeding the
3238	3238	7 limitations of subparagraph (E), then the
3239	3239	8 procurements shall be authorized at a scale
3240	3240	9 determined not to exceed the limitations of
3241	3241	10 subparagraph (E) in a manner consistent with the
3242	3242	11 priorities of this Section.
3243	3243	12 (bb) If the Agency determines that additional
3244	3244	13 renewable energy credit procurement contract
3245	3245	14 awards cannot be made without exceeding the
3246	3246	15 limitations of subparagraph (E), then the Agency
3247	3247	16 shall suspend any new contract awards for the
3248	3248	17 procurement of renewable energy credits until a
3249	3249	18 new rate impact determination is made under
3250	3250	19 subparagraph (E).
3251	3251	20 (cc) Agency determinations made under this
3252	3252	21 item (iv) shall be detailed and comprehensive and,
3253	3253	22 if not made through the Agency's Long-Term
3254	3254	23 Renewable Resources Procurement Plan, shall be
3255	3255	24 filed as a compliance filing in the most recent
3256	3256	25 docketed proceeding approving the Agency's
3257	3257	26 Long-Term Renewable Resources Procurement Plan.
3258	3258
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263	SB3997 - 90 - LRB103 43686 LNS 77044 b
3264	3264
3265	3265
3266	3266	SB3997- 91 -LRB103 43686 LNS 77044 b SB3997 - 91 - LRB103 43686 LNS 77044 b
3267	3267	SB3997 - 91 - LRB103 43686 LNS 77044 b
3268	3268	1 (d) With respect to the procurement of
3269	3269	2 renewable energy credits authorized through
3270	3270	3 programs administered under subsection (b) of
3271	3271	4 Section 1-56 and subparagraphs (K) through (M) of
3272	3272	5 paragraph (1) of subsection (k) of Section 1-75 of
3273	3273	6 this Act, the award of contracts for the
3274	3274	7 procurement of renewable energy credits shall be
3275	3275	8 suspended or reduced only at the conclusion of the
3276	3276	9 program year in which the notice provided for
3277	3277	10 under item (iii) of this subparagraph (E-5) is
3278	3278	11 made.
3279	3279	12 (F) If the limitation on the amount of renewable
3280	3280	13 energy resources procured in subparagraph (E) of this
3281	3281	14 paragraph (1) prevents the Agency from meeting all of the
3282	3282	15 goals in this subsection (c), the Agency's long-term plan
3283	3283	16 shall prioritize compliance with the requirements of this
3284	3284	17 subsection (c) regarding renewable energy credits in the
3285	3285	18 following order:
3286	3286	19 (i) renewable energy credits under existing
3287	3287	20 contractual obligations as of June 1, 2021;
3288	3288	21 (i-5) funding for the Illinois Solar for All
3289	3289	22 Program, as described in subparagraph (O) of this
3290	3290	23 paragraph (1);
3291	3291	24 (ii) renewable energy credits necessary to comply
3292	3292	25 with the new wind and new photovoltaic procurement
3293	3293	26 requirements described in items (i) through (iii) of
3294	3294
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299	SB3997 - 91 - LRB103 43686 LNS 77044 b
3300	3300
3301	3301
3302	3302	SB3997- 92 -LRB103 43686 LNS 77044 b SB3997 - 92 - LRB103 43686 LNS 77044 b
3303	3303	SB3997 - 92 - LRB103 43686 LNS 77044 b
3304	3304	1 subparagraph (C) of this paragraph (1); and
3305	3305	2 (iii) renewable energy credits necessary to meet
3306	3306	3 the remaining requirements of this subsection (c).
3307	3307	4 (G) The following provisions shall apply to the
3308	3308	5 Agency's procurement of renewable energy credits under
3309	3309	6 this subsection (c):
3310	3310	7 (i) Notwithstanding whether a long-term renewable
3311	3311	8 resources procurement plan has been approved, the
3312	3312	9 Agency shall conduct an initial forward procurement
3313	3313	10 for renewable energy credits from new utility-scale
3314	3314	11 wind projects within 160 days after June 1, 2017 (the
3315	3315	12 effective date of Public Act 99-906). For the purposes
3316	3316	13 of this initial forward procurement, the Agency shall
3317	3317	14 solicit 15-year contracts for delivery of 1,000,000
3318	3318	15 renewable energy credits delivered annually from new
3319	3319	16 utility-scale wind projects to begin delivery on June
3320	3320	17 1, 2019, if available, but not later than June 1, 2021,
3321	3321	18 unless the project has delays in the establishment of
3322	3322	19 an operating interconnection with the applicable
3323	3323	20 transmission or distribution system as a result of the
3324	3324	21 actions or inactions of the transmission or
3325	3325	22 distribution provider, or other causes for force
3326	3326	23 majeure as outlined in the procurement contract, in
3327	3327	24 which case, not later than June 1, 2022. Payments to
3328	3328	25 suppliers of renewable energy credits shall commence
3329	3329	26 upon delivery. Renewable energy credits procured under
3330	3330
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335	SB3997 - 92 - LRB103 43686 LNS 77044 b
3336	3336
3337	3337
3338	3338	SB3997- 93 -LRB103 43686 LNS 77044 b SB3997 - 93 - LRB103 43686 LNS 77044 b
3339	3339	SB3997 - 93 - LRB103 43686 LNS 77044 b
3340	3340	1 this initial procurement shall be included in the
3341	3341	2 Agency's long-term plan and shall apply to all
3342	3342	3 renewable energy goals in this subsection (c).
3343	3343	4 (ii) Notwithstanding whether a long-term renewable
3344	3344	5 resources procurement plan has been approved, the
3345	3345	6 Agency shall conduct an initial forward procurement
3346	3346	7 for renewable energy credits from new utility-scale
3347	3347	8 solar projects and brownfield site photovoltaic
3348	3348	9 projects within one year after June 1, 2017 (the
3349	3349	10 effective date of Public Act 99-906). For the purposes
3350	3350	11 of this initial forward procurement, the Agency shall
3351	3351	12 solicit 15-year contracts for delivery of 1,000,000
3352	3352	13 renewable energy credits delivered annually from new
3353	3353	14 utility-scale solar projects and brownfield site
3354	3354	15 photovoltaic projects to begin delivery on June 1,
3355	3355	16 2019, if available, but not later than June 1, 2021,
3356	3356	17 unless the project has delays in the establishment of
3357	3357	18 an operating interconnection with the applicable
3358	3358	19 transmission or distribution system as a result of the
3359	3359	20 actions or inactions of the transmission or
3360	3360	21 distribution provider, or other causes for force
3361	3361	22 majeure as outlined in the procurement contract, in
3362	3362	23 which case, not later than June 1, 2022. The Agency may
3363	3363	24 structure this initial procurement in one or more
3364	3364	25 discrete procurement events. Payments to suppliers of
3365	3365	26 renewable energy credits shall commence upon delivery.
3366	3366
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371	SB3997 - 93 - LRB103 43686 LNS 77044 b
3372	3372
3373	3373
3374	3374	SB3997- 94 -LRB103 43686 LNS 77044 b SB3997 - 94 - LRB103 43686 LNS 77044 b
3375	3375	SB3997 - 94 - LRB103 43686 LNS 77044 b
3376	3376	1 Renewable energy credits procured under this initial
3377	3377	2 procurement shall be included in the Agency's
3378	3378	3 long-term plan and shall apply to all renewable energy
3379	3379	4 goals in this subsection (c).
3380	3380	5 (iii) Notwithstanding whether the Commission has
3381	3381	6 approved the periodic long-term renewable resources
3382	3382	7 procurement plan revision described in Section
3383	3383	8 16-111.5 of the Public Utilities Act, the Agency shall
3384	3384	9 conduct at least one subsequent forward procurement
3385	3385	10 for renewable energy credits from new utility-scale
3386	3386	11 wind projects, new utility-scale solar projects, and
3387	3387	12 new brownfield site photovoltaic projects within 240
3388	3388	13 days after the effective date of this amendatory Act
3389	3389	14 of the 102nd General Assembly in quantities necessary
3390	3390	15 to meet the requirements of subparagraph (C) of this
3391	3391	16 paragraph (1) through the delivery year beginning June
3392	3392	17 1, 2021.
3393	3393	18 (iv) Notwithstanding whether the Commission has
3394	3394	19 approved the periodic long-term renewable resources
3395	3395	20 procurement plan revision described in Section
3396	3396	21 16-111.5 of the Public Utilities Act, the Agency shall
3397	3397	22 open capacity for each category in the Adjustable
3398	3398	23 Block program within 90 days after the effective date
3399	3399	24 of this amendatory Act of the 102nd General Assembly
3400	3400	25 manner:
3401	3401	26 (1) The Agency shall open the first block of
3402	3402
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407	SB3997 - 94 - LRB103 43686 LNS 77044 b
3408	3408
3409	3409
3410	3410	SB3997- 95 -LRB103 43686 LNS 77044 b SB3997 - 95 - LRB103 43686 LNS 77044 b
3411	3411	SB3997 - 95 - LRB103 43686 LNS 77044 b
3412	3412	1 annual capacity for the category described in item
3413	3413	2 (i) of subparagraph (K) of this paragraph (1). The
3414	3414	3 first block of annual capacity for item (i) shall
3415	3415	4 be for at least 75 megawatts of total nameplate
3416	3416	5 capacity. The price of the renewable energy credit
3417	3417	6 for this block of capacity shall be 4% less than
3418	3418	7 the price of the last open block in this category.
3419	3419	8 Projects on a waitlist shall be awarded contracts
3420	3420	9 first in the order in which they appear on the
3421	3421	10 waitlist. Notwithstanding anything to the
3422	3422	11 contrary, for those renewable energy credits that
3423	3423	12 qualify and are procured under this subitem (1) of
3424	3424	13 this item (iv), the renewable energy credit
3425	3425	14 delivery contract value shall be paid in full,
3426	3426	15 based on the estimated generation during the first
3427	3427	16 15 years of operation, by the contracting
3428	3428	17 utilities at the time that the facility producing
3429	3429	18 the renewable energy credits is interconnected at
3430	3430	19 the distribution system level of the utility and
3431	3431	20 verified as energized and in compliance by the
3432	3432	21 Program Administrator. The electric utility shall
3433	3433	22 receive and retire all renewable energy credits
3434	3434	23 generated by the project for the first 15 years of
3435	3435	24 operation. Renewable energy credits generated by
3436	3436	25 the project thereafter shall not be transferred
3437	3437	26 under the renewable energy credit delivery
3438	3438
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443	SB3997 - 95 - LRB103 43686 LNS 77044 b
3444	3444
3445	3445
3446	3446	SB3997- 96 -LRB103 43686 LNS 77044 b SB3997 - 96 - LRB103 43686 LNS 77044 b
3447	3447	SB3997 - 96 - LRB103 43686 LNS 77044 b
3448	3448	1 contract with the counterparty electric utility.
3449	3449	2 (2) The Agency shall open the first block of
3450	3450	3 annual capacity for the category described in item
3451	3451	4 (ii) of subparagraph (K) of this paragraph (1).
3452	3452	5 The first block of annual capacity for item (ii)
3453	3453	6 shall be for at least 75 megawatts of total
3454	3454	7 nameplate capacity.
3455	3455	8 (A) The price of the renewable energy
3456	3456	9 credit for any project on a waitlist for this
3457	3457	10 category before the opening of this block
3458	3458	11 shall be 4% less than the price of the last
3459	3459	12 open block in this category. Projects on the
3460	3460	13 waitlist shall be awarded contracts first in
3461	3461	14 the order in which they appear on the
3462	3462	15 waitlist. Any projects that are less than or
3463	3463	16 equal to 25 kilowatts in size on the waitlist
3464	3464	17 for this capacity shall be moved to the
3465	3465	18 waitlist for paragraph (1) of this item (iv).
3466	3466	19 Notwithstanding anything to the contrary,
3467	3467	20 projects that were on the waitlist prior to
3468	3468	21 opening of this block shall not be required to
3469	3469	22 be in compliance with the requirements of
3470	3470	23 subparagraph (Q) of this paragraph (1) of this
3471	3471	24 subsection (c). Notwithstanding anything to
3472	3472	25 the contrary, for those renewable energy
3473	3473	26 credits procured from projects that were on
3474	3474
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479	SB3997 - 96 - LRB103 43686 LNS 77044 b
3480	3480
3481	3481
3482	3482	SB3997- 97 -LRB103 43686 LNS 77044 b SB3997 - 97 - LRB103 43686 LNS 77044 b
3483	3483	SB3997 - 97 - LRB103 43686 LNS 77044 b
3484	3484	1 the waitlist for this category before the
3485	3485	2 opening of this block 20% of the renewable
3486	3486	3 energy credit delivery contract value, based
3487	3487	4 on the estimated generation during the first
3488	3488	5 15 years of operation, shall be paid by the
3489	3489	6 contracting utilities at the time that the
3490	3490	7 facility producing the renewable energy
3491	3491	8 credits is interconnected at the distribution
3492	3492	9 system level of the utility and verified as
3493	3493	10 energized by the Program Administrator. The
3494	3494	11 remaining portion shall be paid ratably over
3495	3495	12 the subsequent 4-year period. The electric
3496	3496	13 utility shall receive and retire all renewable
3497	3497	14 energy credits generated by the project during
3498	3498	15 the first 15 years of operation. Renewable
3499	3499	16 energy credits generated by the project
3500	3500	17 thereafter shall not be transferred under the
3501	3501	18 renewable energy credit delivery contract with
3502	3502	19 the counterparty electric utility.
3503	3503	20 (B) The price of renewable energy credits
3504	3504	21 for any project not on the waitlist for this
3505	3505	22 category before the opening of the block shall
3506	3506	23 be determined and published by the Agency.
3507	3507	24 Projects not on a waitlist as of the opening
3508	3508	25 of this block shall be subject to the
3509	3509	26 requirements of subparagraph (Q) of this
3510	3510
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515	SB3997 - 97 - LRB103 43686 LNS 77044 b
3516	3516
3517	3517
3518	3518	SB3997- 98 -LRB103 43686 LNS 77044 b SB3997 - 98 - LRB103 43686 LNS 77044 b
3519	3519	SB3997 - 98 - LRB103 43686 LNS 77044 b
3520	3520	1 paragraph (1), as applicable. Projects not on
3521	3521	2 a waitlist as of the opening of this block
3522	3522	3 shall be subject to the contract provisions
3523	3523	4 outlined in item (iii) of subparagraph (L) of
3524	3524	5 this paragraph (1). The Agency shall strive to
3525	3525	6 publish updated prices and an updated
3526	3526	7 renewable energy credit delivery contract as
3527	3527	8 quickly as possible.
3528	3528	9 (3) For opening the first 2 blocks of annual
3529	3529	10 capacity for projects participating in item (iii)
3530	3530	11 of subparagraph (K) of paragraph (1) of subsection
3531	3531	12 (c), projects shall be selected exclusively from
3532	3532	13 those projects on the ordinal waitlists of
3533	3533	14 community renewable generation projects
3534	3534	15 established by the Agency based on the status of
3535	3535	16 those ordinal waitlists as of December 31, 2020,
3536	3536	17 and only those projects previously determined to
3537	3537	18 be eligible for the Agency's April 2019 community
3538	3538	19 solar project selection process.
3539	3539	20 The first 2 blocks of annual capacity for item
3540	3540	21 (iii) shall be for 250 megawatts of total
3541	3541	22 nameplate capacity, with both blocks opening
3542	3542	23 simultaneously under the schedule outlined in the
3543	3543	24 paragraphs below. Projects shall be selected as
3544	3544	25 follows:
3545	3545	26 (A) The geographic balance of selected
3546	3546
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551	SB3997 - 98 - LRB103 43686 LNS 77044 b
3552	3552
3553	3553
3554	3554	SB3997- 99 -LRB103 43686 LNS 77044 b SB3997 - 99 - LRB103 43686 LNS 77044 b
3555	3555	SB3997 - 99 - LRB103 43686 LNS 77044 b
3556	3556	1 projects shall follow the Group classification
3557	3557	2 found in the Agency's Revised Long-Term
3558	3558	3 Renewable Resources Procurement Plan, with 70%
3559	3559	4 of capacity allocated to projects on the Group
3560	3560	5 B waitlist and 30% of capacity allocated to
3561	3561	6 projects on the Group A waitlist.
3562	3562	7 (B) Contract awards for waitlisted
3563	3563	8 projects shall be allocated proportionate to
3564	3564	9 the total nameplate capacity amount across
3565	3565	10 both ordinal waitlists associated with that
3566	3566	11 applicant firm or its affiliates, subject to
3567	3567	12 the following conditions.
3568	3568	13 (i) Each applicant firm having a
3569	3569	14 waitlisted project eligible for selection
3570	3570	15 shall receive no less than 500 kilowatts
3571	3571	16 in awarded capacity across all groups, and
3572	3572	17 no approved vendor may receive more than
3573	3573	18 20% of each Group's waitlist allocation.
3574	3574	19 (ii) Each applicant firm, upon
3575	3575	20 receiving an award of program capacity
3576	3576	21 proportionate to its waitlisted capacity,
3577	3577	22 may then determine which waitlisted
3578	3578	23 projects it chooses to be selected for a
3579	3579	24 contract award up to that capacity amount.
3580	3580	25 (iii) Assuming all other program
3581	3581	26 requirements are met, applicant firms may
3582	3582
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587	SB3997 - 99 - LRB103 43686 LNS 77044 b
3588	3588
3589	3589
3590	3590	SB3997- 100 -LRB103 43686 LNS 77044 b SB3997 - 100 - LRB103 43686 LNS 77044 b
3591	3591	SB3997 - 100 - LRB103 43686 LNS 77044 b
3592	3592	1 adjust the nameplate capacity of applicant
3593	3593	2 projects without losing waitlist
3594	3594	3 eligibility, so long as no project is
3595	3595	4 greater than 2,000 kilowatts in size.
3596	3596	5 (iv) Assuming all other program
3597	3597	6 requirements are met, applicant firms may
3598	3598	7 adjust the expected production associated
3599	3599	8 with applicant projects, subject to
3600	3600	9 verification by the Program Administrator.
3601	3601	10 (C) After a review of affiliate
3602	3602	11 information and the current ordinal waitlists,
3603	3603	12 the Agency shall announce the nameplate
3604	3604	13 capacity award amounts associated with
3605	3605	14 applicant firms no later than 90 days after
3606	3606	15 the effective date of this amendatory Act of
3607	3607	16 the 102nd General Assembly.
3608	3608	17 (D) Applicant firms shall submit their
3609	3609	18 portfolio of projects used to satisfy those
3610	3610	19 contract awards no less than 90 days after the
3611	3611	20 Agency's announcement. The total nameplate
3612	3612	21 capacity of all projects used to satisfy that
3613	3613	22 portfolio shall be no greater than the
3614	3614	23 Agency's nameplate capacity award amount
3615	3615	24 associated with that applicant firm. An
3616	3616	25 applicant firm may decline, in whole or in
3617	3617	26 part, its nameplate capacity award without
3618	3618
3619	3619
3620	3620
3621	3621
3622	3622
3623	3623	SB3997 - 100 - LRB103 43686 LNS 77044 b
3624	3624
3625	3625
3626	3626	SB3997- 101 -LRB103 43686 LNS 77044 b SB3997 - 101 - LRB103 43686 LNS 77044 b
3627	3627	SB3997 - 101 - LRB103 43686 LNS 77044 b
3628	3628	1 penalty, with such unmet capacity rolled over
3629	3629	2 to the next block opening for project
3630	3630	3 selection under item (iii) of subparagraph (K)
3631	3631	4 of this subsection (c). Any projects not
3632	3632	5 included in an applicant firm's portfolio may
3633	3633	6 reapply without prejudice upon the next block
3634	3634	7 reopening for project selection under item
3635	3635	8 (iii) of subparagraph (K) of this subsection
3636	3636	9 (c).
3637	3637	10 (E) The renewable energy credit delivery
3638	3638	11 contract shall be subject to the contract and
3639	3639	12 payment terms outlined in item (iv) of
3640	3640	13 subparagraph (L) of this subsection (c).
3641	3641	14 Contract instruments used for this
3642	3642	15 subparagraph shall contain the following
3643	3643	16 terms:
3644	3644	17 (i) Renewable energy credit prices
3645	3645	18 shall be fixed, without further adjustment
3646	3646	19 under any other provision of this Act or
3647	3647	20 for any other reason, at 10% lower than
3648	3648	21 prices applicable to the last open block
3649	3649	22 for this category, inclusive of any adders
3650	3650	23 available for achieving a minimum of 50%
3651	3651	24 of subscribers to the project's nameplate
3652	3652	25 capacity being residential or small
3653	3653	26 commercial customers with subscriptions of
3654	3654
3655	3655
3656	3656
3657	3657
3658	3658
3659	3659	SB3997 - 101 - LRB103 43686 LNS 77044 b
3660	3660
3661	3661
3662	3662	SB3997- 102 -LRB103 43686 LNS 77044 b SB3997 - 102 - LRB103 43686 LNS 77044 b
3663	3663	SB3997 - 102 - LRB103 43686 LNS 77044 b
3664	3664	1 below 25 kilowatts in size;
3665	3665	2 (ii) A requirement that a minimum of
3666	3666	3 50% of subscribers to the project's
3667	3667	4 nameplate capacity be residential or small
3668	3668	5 commercial customers with subscriptions of
3669	3669	6 below 25 kilowatts in size;
3670	3670	7 (iii) Permission for the ability of a
3671	3671	8 contract holder to substitute projects
3672	3672	9 with other waitlisted projects without
3673	3673	10 penalty should a project receive a
3674	3674	11 non-binding estimate of costs to construct
3675	3675	12 the interconnection facilities and any
3676	3676	13 required distribution upgrades associated
3677	3677	14 with that project of greater than 30 cents
3678	3678	15 per watt AC of that project's nameplate
3679	3679	16 capacity. In developing the applicable
3680	3680	17 contract instrument, the Agency may
3681	3681	18 consider whether other circumstances
3682	3682	19 outside of the control of the applicant
3683	3683	20 firm should also warrant project
3684	3684	21 substitution rights.
3685	3685	22 The Agency shall publish a finalized
3686	3686	23 updated renewable energy credit delivery
3687	3687	24 contract developed consistent with these terms
3688	3688	25 and conditions no less than 30 days before
3689	3689	26 applicant firms must submit their portfolio of
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694
3695	3695	SB3997 - 102 - LRB103 43686 LNS 77044 b
3696	3696
3697	3697
3698	3698	SB3997- 103 -LRB103 43686 LNS 77044 b SB3997 - 103 - LRB103 43686 LNS 77044 b
3699	3699	SB3997 - 103 - LRB103 43686 LNS 77044 b
3700	3700	1 projects pursuant to item (D).
3701	3701	2 (F) To be eligible for an award, the
3702	3702	3 applicant firm shall certify that not less
3703	3703	4 than prevailing wage, as determined pursuant
3704	3704	5 to the Illinois Prevailing Wage Act, was or
3705	3705	6 will be paid to employees who are engaged in
3706	3706	7 construction activities associated with a
3707	3707	8 selected project.
3708	3708	9 (4) The Agency shall open the first block of
3709	3709	10 annual capacity for the category described in item
3710	3710	11 (iv) of subparagraph (K) of this paragraph (1).
3711	3711	12 The first block of annual capacity for item (iv)
3712	3712	13 shall be for at least 50 megawatts of total
3713	3713	14 nameplate capacity. Renewable energy credit prices
3714	3714	15 shall be fixed, without further adjustment under
3715	3715	16 any other provision of this Act or for any other
3716	3716	17 reason, at the price in the last open block in the
3717	3717	18 category described in item (ii) of subparagraph
3718	3718	19 (K) of this paragraph (1). Pricing for future
3719	3719	20 blocks of annual capacity for this category may be
3720	3720	21 adjusted in the Agency's second revision to its
3721	3721	22 Long-Term Renewable Resources Procurement Plan.
3722	3722	23 Projects in this category shall be subject to the
3723	3723	24 contract terms outlined in item (iv) of
3724	3724	25 subparagraph (L) of this paragraph (1).
3725	3725	26 (5) The Agency shall open the equivalent of 2
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730
3731	3731	SB3997 - 103 - LRB103 43686 LNS 77044 b
3732	3732
3733	3733
3734	3734	SB3997- 104 -LRB103 43686 LNS 77044 b SB3997 - 104 - LRB103 43686 LNS 77044 b
3735	3735	SB3997 - 104 - LRB103 43686 LNS 77044 b
3736	3736	1 years of annual capacity for the category
3737	3737	2 described in item (v) of subparagraph (K) of this
3738	3738	3 paragraph (1). The first block of annual capacity
3739	3739	4 for item (v) shall be for at least 10 megawatts of
3740	3740	5 total nameplate capacity. Notwithstanding the
3741	3741	6 provisions of item (v) of subparagraph (K) of this
3742	3742	7 paragraph (1), for the purpose of this initial
3743	3743	8 block, the agency shall accept new project
3744	3744	9 applications intended to increase the diversity of
3745	3745	10 areas hosting community solar projects, the
3746	3746	11 business models of projects, and the size of
3747	3747	12 projects, as described by the Agency in its
3748	3748	13 long-term renewable resources procurement plan
3749	3749	14 that is approved as of the effective date of this
3750	3750	15 amendatory Act of the 102nd General Assembly.
3751	3751	16 Projects in this category shall be subject to the
3752	3752	17 contract terms outlined in item (iii) of
3753	3753	18 subsection (L) of this paragraph (1).
3754	3754	19 (6) The Agency shall open the first blocks of
3755	3755	20 annual capacity for the category described in item
3756	3756	21 (vi) of subparagraph (K) of this paragraph (1),
3757	3757	22 with allocations of capacity within the block
3758	3758	23 generally matching the historical share of block
3759	3759	24 capacity allocated between the category described
3760	3760	25 in items (i) and (ii) of subparagraph (K) of this
3761	3761	26 paragraph (1). The first two blocks of annual
3762	3762
3763	3763
3764	3764
3765	3765
3766	3766
3767	3767	SB3997 - 104 - LRB103 43686 LNS 77044 b
3768	3768
3769	3769
3770	3770	SB3997- 105 -LRB103 43686 LNS 77044 b SB3997 - 105 - LRB103 43686 LNS 77044 b
3771	3771	SB3997 - 105 - LRB103 43686 LNS 77044 b
3772	3772	1 capacity for item (vi) shall be for at least 75
3773	3773	2 megawatts of total nameplate capacity. The price
3774	3774	3 of renewable energy credits for the blocks of
3775	3775	4 capacity shall be 4% less than the price of the
3776	3776	5 last open blocks in the categories described in
3777	3777	6 items (i) and (ii) of subparagraph (K) of this
3778	3778	7 paragraph (1). Pricing for future blocks of annual
3779	3779	8 capacity for this category may be adjusted in the
3780	3780	9 Agency's second revision to its Long-Term
3781	3781	10 Renewable Resources Procurement Plan. Projects in
3782	3782	11 this category shall be subject to the applicable
3783	3783	12 contract terms outlined in items (ii) and (iii) of
3784	3784	13 subparagraph (L) of this paragraph (1).
3785	3785	14 (v) Upon the effective date of this amendatory Act
3786	3786	15 of the 102nd General Assembly, for all competitive
3787	3787	16 procurements and any procurements of renewable energy
3788	3788	17 credit from new utility-scale wind and new
3789	3789	18 utility-scale photovoltaic projects, the Agency shall
3790	3790	19 procure indexed renewable energy credits and direct
3791	3791	20 respondents to offer a strike price.
3792	3792	21 (1) The purchase price of the indexed
3793	3793	22 renewable energy credit payment shall be
3794	3794	23 calculated for each settlement period. That
3795	3795	24 payment, for any settlement period, shall be equal
3796	3796	25 to the difference resulting from subtracting the
3797	3797	26 strike price from the index price for that
3798	3798
3799	3799
3800	3800
3801	3801
3802	3802
3803	3803	SB3997 - 105 - LRB103 43686 LNS 77044 b
3804	3804
3805	3805
3806	3806	SB3997- 106 -LRB103 43686 LNS 77044 b SB3997 - 106 - LRB103 43686 LNS 77044 b
3807	3807	SB3997 - 106 - LRB103 43686 LNS 77044 b
3808	3808	1 settlement period. If this difference results in a
3809	3809	2 negative number, the indexed REC counterparty
3810	3810	3 shall owe the seller the absolute value multiplied
3811	3811	4 by the quantity of energy produced in the relevant
3812	3812	5 settlement period. If this difference results in a
3813	3813	6 positive number, the seller shall owe the indexed
3814	3814	7 REC counterparty this amount multiplied by the
3815	3815	8 quantity of energy produced in the relevant
3816	3816	9 settlement period.
3817	3817	10 (2) Parties shall cash settle every month,
3818	3818	11 summing up all settlements (both positive and
3819	3819	12 negative, if applicable) for the prior month.
3820	3820	13 (3) To ensure funding in the annual budget
3821	3821	14 established under subparagraph (E) for indexed
3822	3822	15 renewable energy credit procurements for each year
3823	3823	16 of the term of such contracts, which must have a
3824	3824	17 minimum tenure of 20 calendar years, the
3825	3825	18 procurement administrator, Agency, Commission
3826	3826	19 staff, and procurement monitor shall quantify the
3827	3827	20 annual cost of the contract by utilizing an
3828	3828	21 industry-standard, third-party forward price curve
3829	3829	22 for energy at the appropriate hub or load zone,
3830	3830	23 including the estimated magnitude and timing of
3831	3831	24 the price effects related to federal carbon
3832	3832	25 controls. Each forward price curve shall contain a
3833	3833	26 specific value of the forecasted market price of
3834	3834
3835	3835
3836	3836
3837	3837
3838	3838
3839	3839	SB3997 - 106 - LRB103 43686 LNS 77044 b
3840	3840
3841	3841
3842	3842	SB3997- 107 -LRB103 43686 LNS 77044 b SB3997 - 107 - LRB103 43686 LNS 77044 b
3843	3843	SB3997 - 107 - LRB103 43686 LNS 77044 b
3844	3844	1 electricity for each annual delivery year of the
3845	3845	2 contract. For procurement planning purposes, the
3846	3846	3 impact on the annual budget for the cost of
3847	3847	4 indexed renewable energy credits for each delivery
3848	3848	5 year shall be determined as the expected annual
3849	3849	6 contract expenditure for that year, equaling the
3850	3850	7 difference between (i) the sum across all relevant
3851	3851	8 contracts of the applicable strike price
3852	3852	9 multiplied by contract quantity and (ii) the sum
3853	3853	10 across all relevant contracts of the forward price
3854	3854	11 curve for the applicable load zone for that year
3855	3855	12 multiplied by contract quantity. The contracting
3856	3856	13 utility shall not assume an obligation in excess
3857	3857	14 of the estimated annual cost of the contracts for
3858	3858	15 indexed renewable energy credits. Forward curves
3859	3859	16 shall be revised on an annual basis as updated
3860	3860	17 forward price curves are released and filed with
3861	3861	18 the Commission in the proceeding approving the
3862	3862	19 Agency's most recent long-term renewable resources
3863	3863	20 procurement plan. If the expected contract spend
3864	3864	21 is higher or lower than the total quantity of
3865	3865	22 contracts multiplied by the forward price curve
3866	3866	23 value for that year, the forward price curve shall
3867	3867	24 be updated by the procurement administrator, in
3868	3868	25 consultation with the Agency, Commission staff,
3869	3869	26 and procurement monitors, using then-currently
3870	3870
3871	3871
3872	3872
3873	3873
3874	3874
3875	3875	SB3997 - 107 - LRB103 43686 LNS 77044 b
3876	3876
3877	3877
3878	3878	SB3997- 108 -LRB103 43686 LNS 77044 b SB3997 - 108 - LRB103 43686 LNS 77044 b
3879	3879	SB3997 - 108 - LRB103 43686 LNS 77044 b
3880	3880	1 available price forecast data and additional
3881	3881	2 budget dollars shall be obligated or reobligated
3882	3882	3 as appropriate.
3883	3883	4 (4) To ensure that indexed renewable energy
3884	3884	5 credit prices remain predictable and affordable,
3885	3885	6 the Agency may consider the institution of a price
3886	3886	7 collar on REC prices paid under indexed renewable
3887	3887	8 energy credit procurements establishing floor and
3888	3888	9 ceiling REC prices applicable to indexed REC
3889	3889	10 contract prices. Any price collars applicable to
3890	3890	11 indexed REC procurements shall be proposed by the
3891	3891	12 Agency through its long-term renewable resources
3892	3892	13 procurement plan.
3893	3893	14 (vi) All procurements under this subparagraph (G),
3894	3894	15 including the procurement of renewable energy credits
3895	3895	16 from hydropower facilities, shall comply with the
3896	3896	17 geographic requirements in subparagraph (I) of this
3897	3897	18 paragraph (1) and shall follow the procurement
3898	3898	19 processes and procedures described in this Section and
3899	3899	20 Section 16-111.5 of the Public Utilities Act to the
3900	3900	21 extent practicable, and these processes and procedures
3901	3901	22 may be expedited to accommodate the schedule
3902	3902	23 established by this subparagraph (G).
3903	3903	24 (vii) On and after the effective date of this
3904	3904	25 amendatory Act of the 103rd General Assembly, for all
3905	3905	26 procurements of renewable energy credits from
3906	3906
3907	3907
3908	3908
3909	3909
3910	3910
3911	3911	SB3997 - 108 - LRB103 43686 LNS 77044 b
3912	3912
3913	3913
3914	3914	SB3997- 109 -LRB103 43686 LNS 77044 b SB3997 - 109 - LRB103 43686 LNS 77044 b
3915	3915	SB3997 - 109 - LRB103 43686 LNS 77044 b
3916	3916	1 hydropower facilities, the Agency shall establish
3917	3917	2 contract terms designed to optimize existing
3918	3918	3 hydropower facilities through modernization or
3919	3919	4 retooling and establish new hydropower facilities at
3920	3920	5 existing dams. Procurements made under this item (vii)
3921	3921	6 shall prioritize projects located in designated
3922	3922	7 environmental justice communities, as defined in
3923	3923	8 subsection (b) of Section 1-56 of this Act, or in
3924	3924	9 projects located in units of local government with
3925	3925	10 median incomes that do not exceed 82% of the median
3926	3926	11 income of the State.
3927	3927	12 (H) The procurement of renewable energy resources for
3928	3928	13 a given delivery year shall be reduced as described in
3929	3929	14 this subparagraph (H) if an alternative retail electric
3930	3930	15 supplier meets the requirements described in this
3931	3931	16 subparagraph (H).
3932	3932	17 (i) Within 45 days after June 1, 2017 (the
3933	3933	18 effective date of Public Act 99-906), an alternative
3934	3934	19 retail electric supplier or its successor shall submit
3935	3935	20 an informational filing to the Illinois Commerce
3936	3936	21 Commission certifying that, as of December 31, 2015,
3937	3937	22 the alternative retail electric supplier owned one or
3938	3938	23 more electric generating facilities that generates
3939	3939	24 renewable energy resources as defined in Section 1-10
3940	3940	25 of this Act, provided that such facilities are not
3941	3941	26 powered by wind or photovoltaics, and the facilities
3942	3942
3943	3943
3944	3944
3945	3945
3946	3946
3947	3947	SB3997 - 109 - LRB103 43686 LNS 77044 b
3948	3948
3949	3949
3950	3950	SB3997- 110 -LRB103 43686 LNS 77044 b SB3997 - 110 - LRB103 43686 LNS 77044 b
3951	3951	SB3997 - 110 - LRB103 43686 LNS 77044 b
3952	3952	1 generate one renewable energy credit for each
3953	3953	2 megawatthour of energy produced from the facility.
3954	3954	3 The informational filing shall identify each
3955	3955	4 facility that was eligible to satisfy the alternative
3956	3956	5 retail electric supplier's obligations under Section
3957	3957	6 16-115D of the Public Utilities Act as described in
3958	3958	7 this item (i).
3959	3959	8 (ii) For a given delivery year, the alternative
3960	3960	9 retail electric supplier may elect to supply its
3961	3961	10 retail customers with renewable energy credits from
3962	3962	11 the facility or facilities described in item (i) of
3963	3963	12 this subparagraph (H) that continue to be owned by the
3964	3964	13 alternative retail electric supplier.
3965	3965	14 (iii) The alternative retail electric supplier
3966	3966	15 shall notify the Agency and the applicable utility, no
3967	3967	16 later than February 28 of the year preceding the
3968	3968	17 applicable delivery year or 15 days after June 1, 2017
3969	3969	18 (the effective date of Public Act 99-906), whichever
3970	3970	19 is later, of its election under item (ii) of this
3971	3971	20 subparagraph (H) to supply renewable energy credits to
3972	3972	21 retail customers of the utility. Such election shall
3973	3973	22 identify the amount of renewable energy credits to be
3974	3974	23 supplied by the alternative retail electric supplier
3975	3975	24 to the utility's retail customers and the source of
3976	3976	25 the renewable energy credits identified in the
3977	3977	26 informational filing as described in item (i) of this
3978	3978
3979	3979
3980	3980
3981	3981
3982	3982
3983	3983	SB3997 - 110 - LRB103 43686 LNS 77044 b
3984	3984
3985	3985
3986	3986	SB3997- 111 -LRB103 43686 LNS 77044 b SB3997 - 111 - LRB103 43686 LNS 77044 b
3987	3987	SB3997 - 111 - LRB103 43686 LNS 77044 b
3988	3988	1 subparagraph (H), subject to the following
3989	3989	2 limitations:
3990	3990	3 For the delivery year beginning June 1, 2018,
3991	3991	4 the maximum amount of renewable energy credits to
3992	3992	5 be supplied by an alternative retail electric
3993	3993	6 supplier under this subparagraph (H) shall be 68%
3994	3994	7 multiplied by 25% multiplied by 14.5% multiplied
3995	3995	8 by the amount of metered electricity
3996	3996	9 (megawatt-hours) delivered by the alternative
3997	3997	10 retail electric supplier to Illinois retail
3998	3998	11 customers during the delivery year ending May 31,
3999	3999	12 2016.
4000	4000	13 For delivery years beginning June 1, 2019 and
4001	4001	14 each year thereafter, the maximum amount of
4002	4002	15 renewable energy credits to be supplied by an
4003	4003	16 alternative retail electric supplier under this
4004	4004	17 subparagraph (H) shall be 68% multiplied by 50%
4005	4005	18 multiplied by 16% multiplied by the amount of
4006	4006	19 metered electricity (megawatt-hours) delivered by
4007	4007	20 the alternative retail electric supplier to
4008	4008	21 Illinois retail customers during the delivery year
4009	4009	22 ending May 31, 2016, provided that the 16% value
4010	4010	23 shall increase by 1.5% each delivery year
4011	4011	24 thereafter to 25% by the delivery year beginning
4012	4012	25 June 1, 2025, and thereafter the 25% value shall
4013	4013	26 apply to each delivery year.
4014	4014
4015	4015
4016	4016
4017	4017
4018	4018
4019	4019	SB3997 - 111 - LRB103 43686 LNS 77044 b
4020	4020
4021	4021
4022	4022	SB3997- 112 -LRB103 43686 LNS 77044 b SB3997 - 112 - LRB103 43686 LNS 77044 b
4023	4023	SB3997 - 112 - LRB103 43686 LNS 77044 b
4024	4024	1 For each delivery year, the total amount of
4025	4025	2 renewable energy credits supplied by all alternative
4026	4026	3 retail electric suppliers under this subparagraph (H)
4027	4027	4 shall not exceed 9% of the Illinois target renewable
4028	4028	5 energy credit quantity. The Illinois target renewable
4029	4029	6 energy credit quantity for the delivery year beginning
4030	4030	7 June 1, 2018 is 14.5% multiplied by the total amount of
4031	4031	8 metered electricity (megawatt-hours) delivered in the
4032	4032	9 delivery year immediately preceding that delivery
4033	4033	10 year, provided that the 14.5% shall increase by 1.5%
4034	4034	11 each delivery year thereafter to 25% by the delivery
4035	4035	12 year beginning June 1, 2025, and thereafter the 25%
4036	4036	13 value shall apply to each delivery year.
4037	4037	14 If the requirements set forth in items (i) through
4038	4038	15 (iii) of this subparagraph (H) are met, the charges
4039	4039	16 that would otherwise be applicable to the retail
4040	4040	17 customers of the alternative retail electric supplier
4041	4041	18 under paragraph (6) of this subsection (c) for the
4042	4042	19 applicable delivery year shall be reduced by the ratio
4043	4043	20 of the quantity of renewable energy credits supplied
4044	4044	21 by the alternative retail electric supplier compared
4045	4045	22 to that supplier's target renewable energy credit
4046	4046	23 quantity. The supplier's target renewable energy
4047	4047	24 credit quantity for the delivery year beginning June
4048	4048	25 1, 2018 is 14.5% multiplied by the total amount of
4049	4049	26 metered electricity (megawatt-hours) delivered by the
4050	4050
4051	4051
4052	4052
4053	4053
4054	4054
4055	4055	SB3997 - 112 - LRB103 43686 LNS 77044 b
4056	4056
4057	4057
4058	4058	SB3997- 113 -LRB103 43686 LNS 77044 b SB3997 - 113 - LRB103 43686 LNS 77044 b
4059	4059	SB3997 - 113 - LRB103 43686 LNS 77044 b
4060	4060	1 alternative retail supplier in that delivery year,
4061	4061	2 provided that the 14.5% shall increase by 1.5% each
4062	4062	3 delivery year thereafter to 25% by the delivery year
4063	4063	4 beginning June 1, 2025, and thereafter the 25% value
4064	4064	5 shall apply to each delivery year.
4065	4065	6 On or before April 1 of each year, the Agency shall
4066	4066	7 annually publish a report on its website that
4067	4067	8 identifies the aggregate amount of renewable energy
4068	4068	9 credits supplied by alternative retail electric
4069	4069	10 suppliers under this subparagraph (H).
4070	4070	11 (I) The Agency shall design its long-term renewable
4071	4071	12 energy procurement plan to maximize the State's interest
4072	4072	13 in the health, safety, and welfare of its residents,
4073	4073	14 including but not limited to minimizing sulfur dioxide,
4074	4074	15 nitrogen oxide, particulate matter and other pollution
4075	4075	16 that adversely affects public health in this State,
4076	4076	17 increasing fuel and resource diversity in this State,
4077	4077	18 enhancing the reliability and resiliency of the
4078	4078	19 electricity distribution system in this State, meeting
4079	4079	20 goals to limit carbon dioxide emissions under federal or
4080	4080	21 State law, and contributing to a cleaner and healthier
4081	4081	22 environment for the citizens of this State. In order to
4082	4082	23 further these legislative purposes, renewable energy
4083	4083	24 credits shall be eligible to be counted toward the
4084	4084	25 renewable energy requirements of this subsection (c) if
4085	4085	26 they are generated from facilities located in this State.
4086	4086
4087	4087
4088	4088
4089	4089
4090	4090
4091	4091	SB3997 - 113 - LRB103 43686 LNS 77044 b
4092	4092
4093	4093
4094	4094	SB3997- 114 -LRB103 43686 LNS 77044 b SB3997 - 114 - LRB103 43686 LNS 77044 b
4095	4095	SB3997 - 114 - LRB103 43686 LNS 77044 b
4096	4096	1 The Agency may qualify renewable energy credits from
4097	4097	2 facilities located in states adjacent to Illinois or
4098	4098	3 renewable energy credits associated with the electricity
4099	4099	4 generated by a utility-scale wind energy facility or
4100	4100	5 utility-scale photovoltaic facility and transmitted by a
4101	4101	6 qualifying direct current project described in subsection
4102	4102	7 (b-5) of Section 8-406 of the Public Utilities Act to a
4103	4103	8 delivery point on the electric transmission grid located
4104	4104	9 in this State or a state adjacent to Illinois, if the
4105	4105	10 generator demonstrates and the Agency determines that the
4106	4106	11 operation of such facility or facilities will help promote
4107	4107	12 the State's interest in the health, safety, and welfare of
4108	4108	13 its residents based on the public interest criteria
4109	4109	14 described above. For the purposes of this Section,
4110	4110	15 renewable resources that are delivered via a high voltage
4111	4111	16 direct current converter station located in Illinois shall
4112	4112	17 be deemed generated in Illinois at the time and location
4113	4113	18 the energy is converted to alternating current by the high
4114	4114	19 voltage direct current converter station if the high
4115	4115	20 voltage direct current transmission line: (i) after the
4116	4116	21 effective date of this amendatory Act of the 102nd General
4117	4117	22 Assembly, was constructed with a project labor agreement;
4118	4118	23 (ii) is capable of transmitting electricity at 525kv;
4119	4119	24 (iii) has an Illinois converter station located and
4120	4120	25 interconnected in the region of the PJM Interconnection,
4121	4121	26 LLC; (iv) does not operate as a public utility; and (v) if
4122	4122
4123	4123
4124	4124
4125	4125
4126	4126
4127	4127	SB3997 - 114 - LRB103 43686 LNS 77044 b
4128	4128
4129	4129
4130	4130	SB3997- 115 -LRB103 43686 LNS 77044 b SB3997 - 115 - LRB103 43686 LNS 77044 b
4131	4131	SB3997 - 115 - LRB103 43686 LNS 77044 b
4132	4132	1 the high voltage direct current transmission line was
4133	4133	2 energized after June 1, 2023. To ensure that the public
4134	4134	3 interest criteria are applied to the procurement and given
4135	4135	4 full effect, the Agency's long-term procurement plan shall
4136	4136	5 describe in detail how each public interest factor shall
4137	4137	6 be considered and weighted for facilities located in
4138	4138	7 states adjacent to Illinois.
4139	4139	8 (J) In order to promote the competitive development of
4140	4140	9 renewable energy resources in furtherance of the State's
4141	4141	10 interest in the health, safety, and welfare of its
4142	4142	11 residents, renewable energy credits shall not be eligible
4143	4143	12 to be counted toward the renewable energy requirements of
4144	4144	13 this subsection (c) if they are sourced from a generating
4145	4145	14 unit whose costs were being recovered through rates
4146	4146	15 regulated by this State or any other state or states on or
4147	4147	16 after January 1, 2017. Each contract executed to purchase
4148	4148	17 renewable energy credits under this subsection (c) shall
4149	4149	18 provide for the contract's termination if the costs of the
4150	4150	19 generating unit supplying the renewable energy credits
4151	4151	20 subsequently begin to be recovered through rates regulated
4152	4152	21 by this State or any other state or states; and each
4153	4153	22 contract shall further provide that, in that event, the
4154	4154	23 supplier of the credits must return 110% of all payments
4155	4155	24 received under the contract. Amounts returned under the
4156	4156	25 requirements of this subparagraph (J) shall be retained by
4157	4157	26 the utility and all of these amounts shall be used for the
4158	4158
4159	4159
4160	4160
4161	4161
4162	4162
4163	4163	SB3997 - 115 - LRB103 43686 LNS 77044 b
4164	4164
4165	4165
4166	4166	SB3997- 116 -LRB103 43686 LNS 77044 b SB3997 - 116 - LRB103 43686 LNS 77044 b
4167	4167	SB3997 - 116 - LRB103 43686 LNS 77044 b
4168	4168	1 procurement of additional renewable energy credits from
4169	4169	2 new wind or new photovoltaic resources as defined in this
4170	4170	3 subsection (c). The long-term plan shall provide that
4171	4171	4 these renewable energy credits shall be procured in the
4172	4172	5 next procurement event.
4173	4173	6 Notwithstanding the limitations of this subparagraph
4174	4174	7 (J), renewable energy credits sourced from generating
4175	4175	8 units that are constructed, purchased, owned, or leased by
4176	4176	9 an electric utility as part of an approved project,
4177	4177	10 program, or pilot under Section 1-56 of this Act shall be
4178	4178	11 eligible to be counted toward the renewable energy
4179	4179	12 requirements of this subsection (c), regardless of how the
4180	4180	13 costs of these units are recovered. As long as a
4181	4181	14 generating unit or an identifiable portion of a generating
4182	4182	15 unit has not had and does not have its costs recovered
4183	4183	16 through rates regulated by this State or any other state,
4184	4184	17 HVDC renewable energy credits associated with that
4185	4185	18 generating unit or identifiable portion thereof shall be
4186	4186	19 eligible to be counted toward the renewable energy
4187	4187	20 requirements of this subsection (c).
4188	4188	21 (K) The long-term renewable resources procurement plan
4189	4189	22 developed by the Agency in accordance with subparagraph
4190	4190	23 (A) of this paragraph (1) shall include an Adjustable
4191	4191	24 Block program for the procurement of renewable energy
4192	4192	25 credits from new photovoltaic projects that are
4193	4193	26 distributed renewable energy generation devices or new
4194	4194
4195	4195
4196	4196
4197	4197
4198	4198
4199	4199	SB3997 - 116 - LRB103 43686 LNS 77044 b
4200	4200
4201	4201
4202	4202	SB3997- 117 -LRB103 43686 LNS 77044 b SB3997 - 117 - LRB103 43686 LNS 77044 b
4203	4203	SB3997 - 117 - LRB103 43686 LNS 77044 b
4204	4204	1 photovoltaic community renewable generation projects. The
4205	4205	2 Adjustable Block program shall be generally designed to
4206	4206	3 provide for the steady, predictable, and sustainable
4207	4207	4 growth of new solar photovoltaic development in Illinois.
4208	4208	5 To this end, the Adjustable Block program shall provide a
4209	4209	6 transparent annual schedule of prices and quantities to
4210	4210	7 enable the photovoltaic market to scale up and for
4211	4211	8 renewable energy credit prices to adjust at a predictable
4212	4212	9 rate over time. The prices set by the Adjustable Block
4213	4213	10 program can be reflected as a set value or as the product
4214	4214	11 of a formula.
4215	4215	12 The Adjustable Block program shall include for each
4216	4216	13 category of eligible projects for each delivery year: a
4217	4217	14 single block of nameplate capacity, a price for renewable
4218	4218	15 energy credits within that block, and the terms and
4219	4219	16 conditions for securing a spot on a waitlist once the
4220	4220	17 block is fully committed or reserved. Except as outlined
4221	4221	18 below, the waitlist of projects in a given year will carry
4222	4222	19 over to apply to the subsequent year when another block is
4223	4223	20 opened. Only projects energized on or after June 1, 2017
4224	4224	21 shall be eligible for the Adjustable Block program. For
4225	4225	22 each category for each delivery year the Agency shall
4226	4226	23 determine the amount of generation capacity in each block,
4227	4227	24 and the purchase price for each block, provided that the
4228	4228	25 purchase price provided and the total amount of generation
4229	4229	26 in all blocks for all categories shall be sufficient to
4230	4230
4231	4231
4232	4232
4233	4233
4234	4234
4235	4235	SB3997 - 117 - LRB103 43686 LNS 77044 b
4236	4236
4237	4237
4238	4238	SB3997- 118 -LRB103 43686 LNS 77044 b SB3997 - 118 - LRB103 43686 LNS 77044 b
4239	4239	SB3997 - 118 - LRB103 43686 LNS 77044 b
4240	4240	1 meet the goals in this subsection (c). The Agency shall
4241	4241	2 strive to issue a single block sized to provide for
4242	4242	3 stability and market growth. The Agency shall establish
4243	4243	4 program eligibility requirements that ensure that projects
4244	4244	5 that enter the program are sufficiently mature to indicate
4245	4245	6 a demonstrable path to completion. The Agency may
4246	4246	7 periodically review its prior decisions establishing the
4247	4247	8 amount of generation capacity in each block, and the
4248	4248	9 purchase price for each block, and may propose, on an
4249	4249	10 expedited basis, changes to these previously set values,
4250	4250	11 including but not limited to redistributing these amounts
4251	4251	12 and the available funds as necessary and appropriate,
4252	4252	13 subject to Commission approval as part of the periodic
4253	4253	14 plan revision process described in Section 16-111.5 of the
4254	4254	15 Public Utilities Act. The Agency may define different
4255	4255	16 block sizes, purchase prices, or other distinct terms and
4256	4256	17 conditions for projects located in different utility
4257	4257	18 service territories if the Agency deems it necessary to
4258	4258	19 meet the goals in this subsection (c).
4259	4259	20 The Adjustable Block program shall include the
4260	4260	21 following categories in at least the following amounts:
4261	4261	22 (i) At least 20% from distributed renewable energy
4262	4262	23 generation devices with a nameplate capacity of no
4263	4263	24 more than 25 kilowatts.
4264	4264	25 (ii) At least 20% from distributed renewable
4265	4265	26 energy generation devices with a nameplate capacity of
4266	4266
4267	4267
4268	4268
4269	4269
4270	4270
4271	4271	SB3997 - 118 - LRB103 43686 LNS 77044 b
4272	4272
4273	4273
4274	4274	SB3997- 119 -LRB103 43686 LNS 77044 b SB3997 - 119 - LRB103 43686 LNS 77044 b
4275	4275	SB3997 - 119 - LRB103 43686 LNS 77044 b
4276	4276	1 more than 25 kilowatts and no more than 5,000
4277	4277	2 kilowatts. The Agency may create sub-categories within
4278	4278	3 this category to account for the differences between
4279	4279	4 projects for small commercial customers, large
4280	4280	5 commercial customers, and public or non-profit
4281	4281	6 customers.
4282	4282	7 (iii) At least 30% from photovoltaic community
4283	4283	8 renewable generation projects. Capacity for this
4284	4284	9 category for the first 2 delivery years after the
4285	4285	10 effective date of this amendatory Act of the 102nd
4286	4286	11 General Assembly shall be allocated to waitlist
4287	4287	12 projects as provided in paragraph (3) of item (iv) of
4288	4288	13 subparagraph (G). Starting in the third delivery year
4289	4289	14 after the effective date of this amendatory Act of the
4290	4290	15 102nd General Assembly or earlier if the Agency
4291	4291	16 determines there is additional capacity needed for to
4292	4292	17 meet previous delivery year requirements, the
4293	4293	18 following shall apply:
4294	4294	19 (1) the Agency shall select projects on a
4295	4295	20 first-come, first-serve basis, however the Agency
4296	4296	21 may suggest additional methods to prioritize
4297	4297	22 projects that are submitted at the same time;
4298	4298	23 (2) projects shall have subscriptions of 25 kW
4299	4299	24 or less for at least 50% of the facility's
4300	4300	25 nameplate capacity and the Agency shall price the
4301	4301	26 renewable energy credits with that as a factor;
4302	4302
4303	4303
4304	4304
4305	4305
4306	4306
4307	4307	SB3997 - 119 - LRB103 43686 LNS 77044 b
4308	4308
4309	4309
4310	4310	SB3997- 120 -LRB103 43686 LNS 77044 b SB3997 - 120 - LRB103 43686 LNS 77044 b
4311	4311	SB3997 - 120 - LRB103 43686 LNS 77044 b
4312	4312	1 (3) projects shall not be colocated with one
4313	4313	2 or more other community renewable generation
4314	4314	3 projects, as defined in the Agency's first revised
4315	4315	4 long-term renewable resources procurement plan
4316	4316	5 approved by the Commission on February 18, 2020,
4317	4317	6 such that the aggregate nameplate capacity exceeds
4318	4318	7 5,000 kilowatts; and
4319	4319	8 (4) projects greater than 2 MW may not apply
4320	4320	9 until after the approval of the Agency's revised
4321	4321	10 Long-Term Renewable Resources Procurement Plan
4322	4322	11 after the effective date of this amendatory Act of
4323	4323	12 the 102nd General Assembly.
4324	4324	13 (iv) At least 15% from distributed renewable
4325	4325	14 generation devices or photovoltaic community renewable
4326	4326	15 generation projects installed on public school land.
4327	4327	16 The Agency may create subcategories within this
4328	4328	17 category to account for the differences between
4329	4329	18 project size or location. Projects located within
4330	4330	19 environmental justice communities or within
4331	4331	20 Organizational Units that fall within Tier 1 or Tier 2
4332	4332	21 shall be given priority. Each of the Agency's periodic
4333	4333	22 updates to its long-term renewable resources
4334	4334	23 procurement plan to incorporate the procurement
4335	4335	24 described in this subparagraph (iv) shall also include
4336	4336	25 the proposed quantities or blocks, pricing, and
4337	4337	26 contract terms applicable to the procurement as
4338	4338
4339	4339
4340	4340
4341	4341
4342	4342
4343	4343	SB3997 - 120 - LRB103 43686 LNS 77044 b
4344	4344
4345	4345
4346	4346	SB3997- 121 -LRB103 43686 LNS 77044 b SB3997 - 121 - LRB103 43686 LNS 77044 b
4347	4347	SB3997 - 121 - LRB103 43686 LNS 77044 b
4348	4348	1 indicated herein. In each such update and procurement,
4349	4349	2 the Agency shall set the renewable energy credit price
4350	4350	3 and establish payment terms for the renewable energy
4351	4351	4 credits procured pursuant to this subparagraph (iv)
4352	4352	5 that make it feasible and affordable for public
4353	4353	6 schools to install photovoltaic distributed renewable
4354	4354	7 energy devices on their premises, including, but not
4355	4355	8 limited to, those public schools subject to the
4356	4356	9 prioritization provisions of this subparagraph. For
4357	4357	10 the purposes of this item (iv):
4358	4358	11 "Environmental Justice Community" shall have the
4359	4359	12 same meaning set forth in the Agency's long-term
4360	4360	13 renewable resources procurement plan;
4361	4361	14 "Organization Unit", "Tier 1" and "Tier 2" shall
4362	4362	15 have the meanings set for in Section 18-8.15 of the
4363	4363	16 School Code;
4364	4364	17 "Public schools" shall have the meaning set forth
4365	4365	18 in Section 1-3 of the School Code and includes public
4366	4366	19 institutions of higher education, as defined in the
4367	4367	20 Board of Higher Education Act.
4368	4368	21 (v) At least 5% from community-driven community
4369	4369	22 solar projects intended to provide more direct and
4370	4370	23 tangible connection and benefits to the communities
4371	4371	24 which they serve or in which they operate and,
4372	4372	25 additionally, to increase the variety of community
4373	4373	26 solar locations, models, and options in Illinois. As
4374	4374
4375	4375
4376	4376
4377	4377
4378	4378
4379	4379	SB3997 - 121 - LRB103 43686 LNS 77044 b
4380	4380
4381	4381
4382	4382	SB3997- 122 -LRB103 43686 LNS 77044 b SB3997 - 122 - LRB103 43686 LNS 77044 b
4383	4383	SB3997 - 122 - LRB103 43686 LNS 77044 b
4384	4384	1 part of its long-term renewable resources procurement
4385	4385	2 plan, the Agency shall develop selection criteria for
4386	4386	3 projects participating in this category. Nothing in
4387	4387	4 this Section shall preclude the Agency from creating a
4388	4388	5 selection process that maximizes community ownership
4389	4389	6 and community benefits in selecting projects to
4390	4390	7 receive renewable energy credits. Selection criteria
4391	4391	8 shall include:
4392	4392	9 (1) community ownership or community
4393	4393	10 wealth-building;
4394	4394	11 (2) additional direct and indirect community
4395	4395	12 benefit, beyond project participation as a
4396	4396	13 subscriber, including, but not limited to,
4397	4397	14 economic, environmental, social, cultural, and
4398	4398	15 physical benefits;
4399	4399	16 (3) meaningful involvement in project
4400	4400	17 organization and development by community members
4401	4401	18 or nonprofit organizations or public entities
4402	4402	19 located in or serving the community;
4403	4403	20 (4) engagement in project operations and
4404	4404	21 management by nonprofit organizations, public
4405	4405	22 entities, or community members; and
4406	4406	23 (5) whether a project is developed in response
4407	4407	24 to a site-specific RFP developed by community
4408	4408	25 members or a nonprofit organization or public
4409	4409	26 entity located in or serving the community.
4410	4410
4411	4411
4412	4412
4413	4413
4414	4414
4415	4415	SB3997 - 122 - LRB103 43686 LNS 77044 b
4416	4416
4417	4417
4418	4418	SB3997- 123 -LRB103 43686 LNS 77044 b SB3997 - 123 - LRB103 43686 LNS 77044 b
4419	4419	SB3997 - 123 - LRB103 43686 LNS 77044 b
4420	4420	1 Selection criteria may also prioritize projects
4421	4421	2 that:
4422	4422	3 (1) are developed in collaboration with or to
4423	4423	4 provide complementary opportunities for the Clean
4424	4424	5 Jobs Workforce Network Program, the Illinois
4425	4425	6 Climate Works Preapprenticeship Program, the
4426	4426	7 Returning Residents Clean Jobs Training Program,
4427	4427	8 the Clean Energy Contractor Incubator Program, or
4428	4428	9 the Clean Energy Primes Contractor Accelerator
4429	4429	10 Program;
4430	4430	11 (2) increase the diversity of locations of
4431	4431	12 community solar projects in Illinois, including by
4432	4432	13 locating in urban areas and population centers;
4433	4433	14 (3) are located in Equity Investment Eligible
4434	4434	15 Communities;
4435	4435	16 (4) are not greenfield projects;
4436	4436	17 (5) serve only local subscribers;
4437	4437	18 (6) have a nameplate capacity that does not
4438	4438	19 exceed 500 kW;
4439	4439	20 (7) are developed by an equity eligible
4440	4440	21 contractor; or
4441	4441	22 (8) otherwise meaningfully advance the goals
4442	4442	23 of providing more direct and tangible connection
4443	4443	24 and benefits to the communities which they serve
4444	4444	25 or in which they operate and increasing the
4445	4445	26 variety of community solar locations, models, and
4446	4446
4447	4447
4448	4448
4449	4449
4450	4450
4451	4451	SB3997 - 123 - LRB103 43686 LNS 77044 b
4452	4452
4453	4453
4454	4454	SB3997- 124 -LRB103 43686 LNS 77044 b SB3997 - 124 - LRB103 43686 LNS 77044 b
4455	4455	SB3997 - 124 - LRB103 43686 LNS 77044 b
4456	4456	1 options in Illinois.
4457	4457	2 For the purposes of this item (v):
4458	4458	3 "Community" means a social unit in which people
4459	4459	4 come together regularly to effect change; a social
4460	4460	5 unit in which participants are marked by a cooperative
4461	4461	6 spirit, a common purpose, or shared interests or
4462	4462	7 characteristics; or a space understood by its
4463	4463	8 residents to be delineated through geographic
4464	4464	9 boundaries or landmarks.
4465	4465	10 "Community benefit" means a range of services and
4466	4466	11 activities that provide affirmative, economic,
4467	4467	12 environmental, social, cultural, or physical value to
4468	4468	13 a community; or a mechanism that enables economic
4469	4469	14 development, high-quality employment, and education
4470	4470	15 opportunities for local workers and residents, or
4471	4471	16 formal monitoring and oversight structures such that
4472	4472	17 community members may ensure that those services and
4473	4473	18 activities respond to local knowledge and needs.
4474	4474	19 "Community ownership" means an arrangement in
4475	4475	20 which an electric generating facility is, or over time
4476	4476	21 will be, in significant part, owned collectively by
4477	4477	22 members of the community to which an electric
4478	4478	23 generating facility provides benefits; members of that
4479	4479	24 community participate in decisions regarding the
4480	4480	25 governance, operation, maintenance, and upgrades of
4481	4481	26 and to that facility; and members of that community
4482	4482
4483	4483
4484	4484
4485	4485
4486	4486
4487	4487	SB3997 - 124 - LRB103 43686 LNS 77044 b
4488	4488
4489	4489
4490	4490	SB3997- 125 -LRB103 43686 LNS 77044 b SB3997 - 125 - LRB103 43686 LNS 77044 b
4491	4491	SB3997 - 125 - LRB103 43686 LNS 77044 b
4492	4492	1 benefit from regular use of that facility.
4493	4493	2 Terms and guidance within these criteria that are
4494	4494	3 not defined in this item (v) shall be defined by the
4495	4495	4 Agency, with stakeholder input, during the development
4496	4496	5 of the Agency's long-term renewable resources
4497	4497	6 procurement plan. The Agency shall develop regular
4498	4498	7 opportunities for projects to submit applications for
4499	4499	8 projects under this category, and develop selection
4500	4500	9 criteria that gives preference to projects that better
4501	4501	10 meet individual criteria as well as projects that
4502	4502	11 address a higher number of criteria.
4503	4503	12 (vi) At least 10% from distributed renewable
4504	4504	13 energy generation devices, which includes distributed
4505	4505	14 renewable energy devices with a nameplate capacity
4506	4506	15 under 5,000 kilowatts or photovoltaic community
4507	4507	16 renewable generation projects, from applicants that
4508	4508	17 are equity eligible contractors. The Agency may create
4509	4509	18 subcategories within this category to account for the
4510	4510	19 differences between project size and type. The Agency
4511	4511	20 shall propose to increase the percentage in this item
4512	4512	21 (vi) over time to 40% based on factors, including, but
4513	4513	22 not limited to, the number of equity eligible
4514	4514	23 contractors and capacity used in this item (vi) in
4515	4515	24 previous delivery years.
4516	4516	25 The Agency shall propose a payment structure for
4517	4517	26 contracts executed pursuant to this paragraph under
4518	4518
4519	4519
4520	4520
4521	4521
4522	4522
4523	4523	SB3997 - 125 - LRB103 43686 LNS 77044 b
4524	4524
4525	4525
4526	4526	SB3997- 126 -LRB103 43686 LNS 77044 b SB3997 - 126 - LRB103 43686 LNS 77044 b
4527	4527	SB3997 - 126 - LRB103 43686 LNS 77044 b
4528	4528	1 which, upon a demonstration of qualification or need,
4529	4529	2 applicant firms are advanced capital disbursed after
4530	4530	3 contract execution but before the contracted project's
4531	4531	4 energization. The amount or percentage of capital
4532	4532	5 advanced prior to project energization shall be
4533	4533	6 sufficient to both cover any increase in development
4534	4534	7 costs resulting from prevailing wage requirements or
4535	4535	8 project-labor agreements, and designed to overcome
4536	4536	9 barriers in access to capital faced by equity eligible
4537	4537	10 contractors. The amount or percentage of advanced
4538	4538	11 capital may vary by subcategory within this category
4539	4539	12 and by an applicant's demonstration of need, with such
4540	4540	13 levels to be established through the Long-Term
4541	4541	14 Renewable Resources Procurement Plan authorized under
4542	4542	15 subparagraph (A) of paragraph (1) of subsection (c) of
4543	4543	16 this Section.
4544	4544	17 Contracts developed featuring capital advanced
4545	4545	18 prior to a project's energization shall feature
4546	4546	19 provisions to ensure both the successful development
4547	4547	20 of applicant projects and the delivery of the
4548	4548	21 renewable energy credits for the full term of the
4549	4549	22 contract, including ongoing collateral requirements
4550	4550	23 and other provisions deemed necessary by the Agency,
4551	4551	24 and may include energization timelines longer than for
4552	4552	25 comparable project types. The percentage or amount of
4553	4553	26 capital advanced prior to project energization shall
4554	4554
4555	4555
4556	4556
4557	4557
4558	4558
4559	4559	SB3997 - 126 - LRB103 43686 LNS 77044 b
4560	4560
4561	4561
4562	4562	SB3997- 127 -LRB103 43686 LNS 77044 b SB3997 - 127 - LRB103 43686 LNS 77044 b
4563	4563	SB3997 - 127 - LRB103 43686 LNS 77044 b
4564	4564	1 not operate to increase the overall contract value,
4565	4565	2 however contracts executed under this subparagraph may
4566	4566	3 feature renewable energy credit prices higher than
4567	4567	4 those offered to similar projects participating in
4568	4568	5 other categories. Capital advanced prior to
4569	4569	6 energization shall serve to reduce the ratable
4570	4570	7 payments made after energization under items (ii) and
4571	4571	8 (iii) of subparagraph (L) or payments made for each
4572	4572	9 renewable energy credit delivery under item (iv) of
4573	4573	10 subparagraph (L).
4574	4574	11 (vii) The remaining capacity shall be allocated by
4575	4575	12 the Agency in order to respond to market demand. The
4576	4576	13 Agency shall allocate any discretionary capacity prior
4577	4577	14 to the beginning of each delivery year.
4578	4578	15 To the extent there is uncontracted capacity from any
4579	4579	16 block in any of categories (i) through (vi) at the end of a
4580	4580	17 delivery year, the Agency shall redistribute that capacity
4581	4581	18 to one or more other categories giving priority to
4582	4582	19 categories with projects on a waitlist. The redistributed
4583	4583	20 capacity shall be added to the annual capacity in the
4584	4584	21 subsequent delivery year, and the price for renewable
4585	4585	22 energy credits shall be the price for the new delivery
4586	4586	23 year. Redistributed capacity shall not be considered
4587	4587	24 redistributed when determining whether the goals in this
4588	4588	25 subsection (K) have been met.
4589	4589	26 Notwithstanding anything to the contrary, as the
4590	4590
4591	4591
4592	4592
4593	4593
4594	4594
4595	4595	SB3997 - 127 - LRB103 43686 LNS 77044 b
4596	4596
4597	4597
4598	4598	SB3997- 128 -LRB103 43686 LNS 77044 b SB3997 - 128 - LRB103 43686 LNS 77044 b
4599	4599	SB3997 - 128 - LRB103 43686 LNS 77044 b
4600	4600	1 Agency increases the capacity in item (vi) to 40% over
4601	4601	2 time, the Agency may reduce the capacity of items (i)
4602	4602	3 through (v) proportionate to the capacity of the
4603	4603	4 categories of projects in item (vi), to achieve a balance
4604	4604	5 of project types.
4605	4605	6 The Adjustable Block program shall be designed to
4606	4606	7 ensure that renewable energy credits are procured from
4607	4607	8 projects in diverse locations and are not concentrated in
4608	4608	9 a few regional areas.
4609	4609	10 (L) Notwithstanding provisions for advancing capital
4610	4610	11 prior to project energization found in item (vi) of
4611	4611	12 subparagraph (K), the procurement of photovoltaic
4612	4612	13 renewable energy credits under items (i) through (vi) of
4613	4613	14 subparagraph (K) of this paragraph (1) shall otherwise be
4614	4614	15 subject to the following contract and payment terms:
4615	4615	16 (i) (Blank).
4616	4616	17 (ii) For those renewable energy credits that
4617	4617	18 qualify and are procured under item (i) of
4618	4618	19 subparagraph (K) of this paragraph (1), and any
4619	4619	20 similar category projects that are procured under item
4620	4620	21 (vi) of subparagraph (K) of this paragraph (1) that
4621	4621	22 qualify and are procured under item (vi), the contract
4622	4622	23 length shall be 15 years. The renewable energy credit
4623	4623	24 delivery contract value shall be paid in full, based
4624	4624	25 on the estimated generation during the first 15 years
4625	4625	26 of operation, by the contracting utilities at the time
4626	4626
4627	4627
4628	4628
4629	4629
4630	4630
4631	4631	SB3997 - 128 - LRB103 43686 LNS 77044 b
4632	4632
4633	4633
4634	4634	SB3997- 129 -LRB103 43686 LNS 77044 b SB3997 - 129 - LRB103 43686 LNS 77044 b
4635	4635	SB3997 - 129 - LRB103 43686 LNS 77044 b
4636	4636	1 that the facility producing the renewable energy
4637	4637	2 credits is interconnected at the distribution system
4638	4638	3 level of the utility and verified as energized and
4639	4639	4 compliant by the Program Administrator. The electric
4640	4640	5 utility shall receive and retire all renewable energy
4641	4641	6 credits generated by the project for the first 15
4642	4642	7 years of operation. Renewable energy credits generated
4643	4643	8 by the project thereafter shall not be transferred
4644	4644	9 under the renewable energy credit delivery contract
4645	4645	10 with the counterparty electric utility.
4646	4646	11 (iii) For those renewable energy credits that
4647	4647	12 qualify and are procured under item (ii) and (v) of
4648	4648	13 subparagraph (K) of this paragraph (1) and any like
4649	4649	14 projects similar category that qualify and are
4650	4650	15 procured under item (vi), the contract length shall be
4651	4651	16 15 years. 15% of the renewable energy credit delivery
4652	4652	17 contract value, based on the estimated generation
4653	4653	18 during the first 15 years of operation, shall be paid
4654	4654	19 by the contracting utilities at the time that the
4655	4655	20 facility producing the renewable energy credits is
4656	4656	21 interconnected at the distribution system level of the
4657	4657	22 utility and verified as energized and compliant by the
4658	4658	23 Program Administrator. The remaining portion shall be
4659	4659	24 paid ratably over the subsequent 6-year period. The
4660	4660	25 electric utility shall receive and retire all
4661	4661	26 renewable energy credits generated by the project for
4662	4662
4663	4663
4664	4664
4665	4665
4666	4666
4667	4667	SB3997 - 129 - LRB103 43686 LNS 77044 b
4668	4668
4669	4669
4670	4670	SB3997- 130 -LRB103 43686 LNS 77044 b SB3997 - 130 - LRB103 43686 LNS 77044 b
4671	4671	SB3997 - 130 - LRB103 43686 LNS 77044 b
4672	4672	1 the first 15 years of operation. Renewable energy
4673	4673	2 credits generated by the project thereafter shall not
4674	4674	3 be transferred under the renewable energy credit
4675	4675	4 delivery contract with the counterparty electric
4676	4676	5 utility.
4677	4677	6 (iv) For those renewable energy credits that
4678	4678	7 qualify and are procured under items (iii) and (iv) of
4679	4679	8 subparagraph (K) of this paragraph (1), and any like
4680	4680	9 projects that qualify and are procured under item
4681	4681	10 (vi), the renewable energy credit delivery contract
4682	4682	11 length shall be 20 years and shall be paid over the
4683	4683	12 delivery term, not to exceed during each delivery year
4684	4684	13 the contract price multiplied by the estimated annual
4685	4685	14 renewable energy credit generation amount. If
4686	4686	15 generation of renewable energy credits during a
4687	4687	16 delivery year exceeds the estimated annual generation
4688	4688	17 amount, the excess renewable energy credits shall be
4689	4689	18 carried forward to future delivery years and shall not
4690	4690	19 expire during the delivery term. If generation of
4691	4691	20 renewable energy credits during a delivery year,
4692	4692	21 including carried forward excess renewable energy
4693	4693	22 credits, if any, is less than the estimated annual
4694	4694	23 generation amount, payments during such delivery year
4695	4695	24 will not exceed the quantity generated plus the
4696	4696	25 quantity carried forward multiplied by the contract
4697	4697	26 price. The electric utility shall receive all
4698	4698
4699	4699
4700	4700
4701	4701
4702	4702
4703	4703	SB3997 - 130 - LRB103 43686 LNS 77044 b
4704	4704
4705	4705
4706	4706	SB3997- 131 -LRB103 43686 LNS 77044 b SB3997 - 131 - LRB103 43686 LNS 77044 b
4707	4707	SB3997 - 131 - LRB103 43686 LNS 77044 b
4708	4708	1 renewable energy credits generated by the project
4709	4709	2 during the first 20 years of operation and retire all
4710	4710	3 renewable energy credits paid for under this item (iv)
4711	4711	4 and return at the end of the delivery term all
4712	4712	5 renewable energy credits that were not paid for.
4713	4713	6 Renewable energy credits generated by the project
4714	4714	7 thereafter shall not be transferred under the
4715	4715	8 renewable energy credit delivery contract with the
4716	4716	9 counterparty electric utility. Notwithstanding the
4717	4717	10 preceding, for those projects participating under item
4718	4718	11 (iii) of subparagraph (K), the contract price for a
4719	4719	12 delivery year shall be based on subscription levels as
4720	4720	13 measured on the higher of the first business day of the
4721	4721	14 delivery year or the first business day 6 months after
4722	4722	15 the first business day of the delivery year.
4723	4723	16 Subscription of 90% of nameplate capacity or greater
4724	4724	17 shall be deemed to be fully subscribed for the
4725	4725	18 purposes of this item (iv). For projects receiving a
4726	4726	19 20-year delivery contract, REC prices shall be
4727	4727	20 adjusted downward for consistency with the incentive
4728	4728	21 levels previously determined to be necessary to
4729	4729	22 support projects under 15-year delivery contracts,
4730	4730	23 taking into consideration any additional new
4731	4731	24 requirements placed on the projects, including, but
4732	4732	25 not limited to, labor standards.
4733	4733	26 (v) Each contract shall include provisions to
4734	4734
4735	4735
4736	4736
4737	4737
4738	4738
4739	4739	SB3997 - 131 - LRB103 43686 LNS 77044 b
4740	4740
4741	4741
4742	4742	SB3997- 132 -LRB103 43686 LNS 77044 b SB3997 - 132 - LRB103 43686 LNS 77044 b
4743	4743	SB3997 - 132 - LRB103 43686 LNS 77044 b
4744	4744	1 ensure the delivery of the estimated quantity of
4745	4745	2 renewable energy credits and ongoing collateral
4746	4746	3 requirements and other provisions deemed appropriate
4747	4747	4 by the Agency.
4748	4748	5 (vi) The utility shall be the counterparty to the
4749	4749	6 contracts executed under this subparagraph (L) that
4750	4750	7 are approved by the Commission under the process
4751	4751	8 described in Section 16-111.5 of the Public Utilities
4752	4752	9 Act. No contract shall be executed for an amount that
4753	4753	10 is less than one renewable energy credit per year.
4754	4754	11 (vii) If, at any time, approved applications for
4755	4755	12 the Adjustable Block program exceed funds collected by
4756	4756	13 the electric utility or would cause the Agency to
4757	4757	14 exceed the limitation described in subparagraph (E) of
4758	4758	15 this paragraph (1) on the amount of renewable energy
4759	4759	16 resources that may be procured, then the Agency may
4760	4760	17 consider future uncommitted funds to be reserved for
4761	4761	18 these contracts on a first-come, first-served basis.
4762	4762	19 (viii) Nothing in this Section shall require the
4763	4763	20 utility to advance any payment or pay any amounts that
4764	4764	21 exceed the actual amount of revenues anticipated to be
4765	4765	22 collected by the utility under paragraph (6) of this
4766	4766	23 subsection (c) and subsection (k) of Section 16-108 of
4767	4767	24 the Public Utilities Act inclusive of eligible funds
4768	4768	25 collected in prior years and alternative compliance
4769	4769	26 payments for use by the utility, and contracts
4770	4770
4771	4771
4772	4772
4773	4773
4774	4774
4775	4775	SB3997 - 132 - LRB103 43686 LNS 77044 b
4776	4776
4777	4777
4778	4778	SB3997- 133 -LRB103 43686 LNS 77044 b SB3997 - 133 - LRB103 43686 LNS 77044 b
4779	4779	SB3997 - 133 - LRB103 43686 LNS 77044 b
4780	4780	1 executed under this Section shall expressly
4781	4781	2 incorporate this limitation.
4782	4782	3 (ix) Notwithstanding other requirements of this
4783	4783	4 subparagraph (L), no modification shall be required to
4784	4784	5 Adjustable Block program contracts if they were
4785	4785	6 already executed prior to the establishment, approval,
4786	4786	7 and implementation of new contract forms as a result
4787	4787	8 of this amendatory Act of the 102nd General Assembly.
4788	4788	9 (x) Contracts may be assignable, but only to
4789	4789	10 entities first deemed by the Agency to have met
4790	4790	11 program terms and requirements applicable to direct
4791	4791	12 program participation. In developing contracts for the
4792	4792	13 delivery of renewable energy credits, the Agency shall
4793	4793	14 be permitted to establish fees applicable to each
4794	4794	15 contract assignment.
4795	4795	16 (M) The Agency shall be authorized to retain one or
4796	4796	17 more experts or expert consulting firms to develop,
4797	4797	18 administer, implement, operate, and evaluate the
4798	4798	19 Adjustable Block program described in subparagraph (K) of
4799	4799	20 this paragraph (1), and the Agency shall retain the
4800	4800	21 consultant or consultants in the same manner, to the
4801	4801	22 extent practicable, as the Agency retains others to
4802	4802	23 administer provisions of this Act, including, but not
4803	4803	24 limited to, the procurement administrator. The selection
4804	4804	25 of experts and expert consulting firms and the procurement
4805	4805	26 process described in this subparagraph (M) are exempt from
4806	4806
4807	4807
4808	4808
4809	4809
4810	4810
4811	4811	SB3997 - 133 - LRB103 43686 LNS 77044 b
4812	4812
4813	4813
4814	4814	SB3997- 134 -LRB103 43686 LNS 77044 b SB3997 - 134 - LRB103 43686 LNS 77044 b
4815	4815	SB3997 - 134 - LRB103 43686 LNS 77044 b
4816	4816	1 the requirements of Section 20-10 of the Illinois
4817	4817	2 Procurement Code, under Section 20-10 of that Code. The
4818	4818	3 Agency shall strive to minimize administrative expenses in
4819	4819	4 the implementation of the Adjustable Block program.
4820	4820	5 The Program Administrator may charge application fees
4821	4821	6 to participating firms to cover the cost of program
4822	4822	7 administration. Any application fee amounts shall
4823	4823	8 initially be determined through the long-term renewable
4824	4824	9 resources procurement plan, and modifications to any
4825	4825	10 application fee that deviate more than 25% from the
4826	4826	11 Commission's approved value must be approved by the
4827	4827	12 Commission as a long-term plan revision under Section
4828	4828	13 16-111.5 of the Public Utilities Act. The Agency shall
4829	4829	14 consider stakeholder feedback when making adjustments to
4830	4830	15 application fees and shall notify stakeholders in advance
4831	4831	16 of any planned changes.
4832	4832	17 In addition to covering the costs of program
4833	4833	18 administration, the Agency, in conjunction with its
4834	4834	19 Program Administrator, may also use the proceeds of such
4835	4835	20 fees charged to participating firms to support public
4836	4836	21 education and ongoing regional and national coordination
4837	4837	22 with nonprofit organizations, public bodies, and others
4838	4838	23 engaged in the implementation of renewable energy
4839	4839	24 incentive programs or similar initiatives. This work may
4840	4840	25 include developing papers and reports, hosting regional
4841	4841	26 and national conferences, and other work deemed necessary
4842	4842
4843	4843
4844	4844
4845	4845
4846	4846
4847	4847	SB3997 - 134 - LRB103 43686 LNS 77044 b
4848	4848
4849	4849
4850	4850	SB3997- 135 -LRB103 43686 LNS 77044 b SB3997 - 135 - LRB103 43686 LNS 77044 b
4851	4851	SB3997 - 135 - LRB103 43686 LNS 77044 b
4852	4852	1 by the Agency to position the State of Illinois as a
4853	4853	2 national leader in renewable energy incentive program
4854	4854	3 development and administration.
4855	4855	4 The Agency and its consultant or consultants shall
4856	4856	5 monitor block activity, share program activity with
4857	4857	6 stakeholders and conduct quarterly meetings to discuss
4858	4858	7 program activity and market conditions. If necessary, the
4859	4859	8 Agency may make prospective administrative adjustments to
4860	4860	9 the Adjustable Block program design, such as making
4861	4861	10 adjustments to purchase prices as necessary to achieve the
4862	4862	11 goals of this subsection (c). Program modifications to any
4863	4863	12 block price that do not deviate from the Commission's
4864	4864	13 approved value by more than 10% shall take effect
4865	4865	14 immediately and are not subject to Commission review and
4866	4866	15 approval. Program modifications to any block price that
4867	4867	16 deviate more than 10% from the Commission's approved value
4868	4868	17 must be approved by the Commission as a long-term plan
4869	4869	18 amendment under Section 16-111.5 of the Public Utilities
4870	4870	19 Act. The Agency shall consider stakeholder feedback when
4871	4871	20 making adjustments to the Adjustable Block design and
4872	4872	21 shall notify stakeholders in advance of any planned
4873	4873	22 changes.
4874	4874	23 The Agency and its program administrators for both the
4875	4875	24 Adjustable Block program and the Illinois Solar for All
4876	4876	25 Program, consistent with the requirements of this
4877	4877	26 subsection (c) and subsection (b) of Section 1-56 of this
4878	4878
4879	4879
4880	4880
4881	4881
4882	4882
4883	4883	SB3997 - 135 - LRB103 43686 LNS 77044 b
4884	4884
4885	4885
4886	4886	SB3997- 136 -LRB103 43686 LNS 77044 b SB3997 - 136 - LRB103 43686 LNS 77044 b
4887	4887	SB3997 - 136 - LRB103 43686 LNS 77044 b
4888	4888	1 Act, shall propose the Adjustable Block program terms,
4889	4889	2 conditions, and requirements, including the prices to be
4890	4890	3 paid for renewable energy credits, where applicable, and
4891	4891	4 requirements applicable to participating entities and
4892	4892	5 project applications, through the development, review, and
4893	4893	6 approval of the Agency's long-term renewable resources
4894	4894	7 procurement plan described in this subsection (c) and
4895	4895	8 paragraph (5) of subsection (b) of Section 16-111.5 of the
4896	4896	9 Public Utilities Act. Terms, conditions, and requirements
4897	4897	10 for program participation shall include the following:
4898	4898	11 (i) The Agency shall establish a registration
4899	4899	12 process for entities seeking to qualify for
4900	4900	13 program-administered incentive funding and establish
4901	4901	14 baseline qualifications for vendor approval. The
4902	4902	15 Agency must maintain a list of approved entities on
4903	4903	16 each program's website, and may revoke a vendor's
4904	4904	17 ability to receive program-administered incentive
4905	4905	18 funding status upon a determination that the vendor
4906	4906	19 failed to comply with contract terms, the law, or
4907	4907	20 other program requirements.
4908	4908	21 (ii) The Agency shall establish program
4909	4909	22 requirements and minimum contract terms to ensure
4910	4910	23 projects are properly installed and produce their
4911	4911	24 expected amounts of energy. Program requirements may
4912	4912	25 include on-site inspections and photo documentation of
4913	4913	26 projects under construction. The Agency may require
4914	4914
4915	4915
4916	4916
4917	4917
4918	4918
4919	4919	SB3997 - 136 - LRB103 43686 LNS 77044 b
4920	4920
4921	4921
4922	4922	SB3997- 137 -LRB103 43686 LNS 77044 b SB3997 - 137 - LRB103 43686 LNS 77044 b
4923	4923	SB3997 - 137 - LRB103 43686 LNS 77044 b
4924	4924	1 repairs, alterations, or additions to remedy any
4925	4925	2 material deficiencies discovered. Vendors who have a
4926	4926	3 disproportionately high number of deficient systems
4927	4927	4 may lose their eligibility to continue to receive
4928	4928	5 State-administered incentive funding through Agency
4929	4929	6 programs and procurements.
4930	4930	7 (iii) To discourage deceptive marketing or other
4931	4931	8 bad faith business practices, the Agency may require
4932	4932	9 direct program participants, including agents
4933	4933	10 operating on their behalf, to provide standardized
4934	4934	11 disclosures to a customer prior to that customer's
4935	4935	12 execution of a contract for the development of a
4936	4936	13 distributed generation system or a subscription to a
4937	4937	14 community solar project.
4938	4938	15 (iv) The Agency shall establish one or multiple
4939	4939	16 Consumer Complaints Centers to accept complaints
4940	4940	17 regarding businesses that participate in, or otherwise
4941	4941	18 benefit from, State-administered incentive funding
4942	4942	19 through Agency-administered programs. The Agency shall
4943	4943	20 maintain a public database of complaints with any
4944	4944	21 confidential or particularly sensitive information
4945	4945	22 redacted from public entries.
4946	4946	23 (v) Through a filing in the proceeding for the
4947	4947	24 approval of its long-term renewable energy resources
4948	4948	25 procurement plan, the Agency shall provide an annual
4949	4949	26 written report to the Illinois Commerce Commission
4950	4950
4951	4951
4952	4952
4953	4953
4954	4954
4955	4955	SB3997 - 137 - LRB103 43686 LNS 77044 b
4956	4956
4957	4957
4958	4958	SB3997- 138 -LRB103 43686 LNS 77044 b SB3997 - 138 - LRB103 43686 LNS 77044 b
4959	4959	SB3997 - 138 - LRB103 43686 LNS 77044 b
4960	4960	1 documenting the frequency and nature of complaints and
4961	4961	2 any enforcement actions taken in response to those
4962	4962	3 complaints.
4963	4963	4 (vi) The Agency shall schedule regular meetings
4964	4964	5 with representatives of the Office of the Attorney
4965	4965	6 General, the Illinois Commerce Commission, consumer
4966	4966	7 protection groups, and other interested stakeholders
4967	4967	8 to share relevant information about consumer
4968	4968	9 protection, project compliance, and complaints
4969	4969	10 received.
4970	4970	11 (vii) To the extent that complaints received
4971	4971	12 implicate the jurisdiction of the Office of the
4972	4972	13 Attorney General, the Illinois Commerce Commission, or
4973	4973	14 local, State, or federal law enforcement, the Agency
4974	4974	15 shall also refer complaints to those entities as
4975	4975	16 appropriate.
4976	4976	17 (N) The Agency shall establish the terms, conditions,
4977	4977	18 and program requirements for photovoltaic community
4978	4978	19 renewable generation projects with a goal to expand access
4979	4979	20 to a broader group of energy consumers, to ensure robust
4980	4980	21 participation opportunities for residential and small
4981	4981	22 commercial customers and those who cannot install
4982	4982	23 renewable energy on their own properties. Subject to
4983	4983	24 reasonable limitations, any plan approved by the
4984	4984	25 Commission shall allow subscriptions to community
4985	4985	26 renewable generation projects to be portable and
4986	4986
4987	4987
4988	4988
4989	4989
4990	4990
4991	4991	SB3997 - 138 - LRB103 43686 LNS 77044 b
4992	4992
4993	4993
4994	4994	SB3997- 139 -LRB103 43686 LNS 77044 b SB3997 - 139 - LRB103 43686 LNS 77044 b
4995	4995	SB3997 - 139 - LRB103 43686 LNS 77044 b
4996	4996	1 transferable. For purposes of this subparagraph (N),
4997	4997	2 "portable" means that subscriptions may be retained by the
4998	4998	3 subscriber even if the subscriber relocates or changes its
4999	4999	4 address within the same utility service territory; and
5000	5000	5 "transferable" means that a subscriber may assign or sell
5001	5001	6 subscriptions to another person within the same utility
5002	5002	7 service territory.
5003	5003	8 Through the development of its long-term renewable
5004	5004	9 resources procurement plan, the Agency may consider
5005	5005	10 whether community renewable generation projects utilizing
5006	5006	11 technologies other than photovoltaics should be supported
5007	5007	12 through State-administered incentive funding, and may
5008	5008	13 issue requests for information to gauge market demand.
5009	5009	14 Electric utilities shall provide a monetary credit to
5010	5010	15 a subscriber's subsequent bill for service for the
5011	5011	16 proportional output of a community renewable generation
5012	5012	17 project attributable to that subscriber as specified in
5013	5013	18 Section 16-107.5 of the Public Utilities Act.
5014	5014	19 The Agency shall purchase renewable energy credits
5015	5015	20 from subscribed shares of photovoltaic community renewable
5016	5016	21 generation projects through the Adjustable Block program
5017	5017	22 described in subparagraph (K) of this paragraph (1) or
5018	5018	23 through the Illinois Solar for All Program described in
5019	5019	24 Section 1-56 of this Act. The electric utility shall
5020	5020	25 purchase any unsubscribed energy from community renewable
5021	5021	26 generation projects that are Qualifying Facilities ("QF")
5022	5022
5023	5023
5024	5024
5025	5025
5026	5026
5027	5027	SB3997 - 139 - LRB103 43686 LNS 77044 b
5028	5028
5029	5029
5030	5030	SB3997- 140 -LRB103 43686 LNS 77044 b SB3997 - 140 - LRB103 43686 LNS 77044 b
5031	5031	SB3997 - 140 - LRB103 43686 LNS 77044 b
5032	5032	1 under the electric utility's tariff for purchasing the
5033	5033	2 output from QFs under Public Utilities Regulatory Policies
5034	5034	3 Act of 1978.
5035	5035	4 The owners of and any subscribers to a community
5036	5036	5 renewable generation project shall not be considered
5037	5037	6 public utilities or alternative retail electricity
5038	5038	7 suppliers under the Public Utilities Act solely as a
5039	5039	8 result of their interest in or subscription to a community
5040	5040	9 renewable generation project and shall not be required to
5041	5041	10 become an alternative retail electric supplier by
5042	5042	11 participating in a community renewable generation project
5043	5043	12 with a public utility.
5044	5044	13 (O) For the delivery year beginning June 1, 2018, the
5045	5045	14 long-term renewable resources procurement plan required by
5046	5046	15 this subsection (c) shall provide for the Agency to
5047	5047	16 procure contracts to continue offering the Illinois Solar
5048	5048	17 for All Program described in subsection (b) of Section
5049	5049	18 1-56 of this Act, and the contracts approved by the
5050	5050	19 Commission shall be executed by the utilities that are
5051	5051	20 subject to this subsection (c). The long-term renewable
5052	5052	21 resources procurement plan shall allocate up to
5053	5053	22 $50,000,000 per delivery year to fund the programs, and
5054	5054	23 the plan shall determine the amount of funding to be
5055	5055	24 apportioned to the programs identified in subsection (b)
5056	5056	25 of Section 1-56 of this Act; provided that for the
5057	5057	26 delivery years beginning June 1, 2021, June 1, 2022, and
5058	5058
5059	5059
5060	5060
5061	5061
5062	5062
5063	5063	SB3997 - 140 - LRB103 43686 LNS 77044 b
5064	5064
5065	5065
5066	5066	SB3997- 141 -LRB103 43686 LNS 77044 b SB3997 - 141 - LRB103 43686 LNS 77044 b
5067	5067	SB3997 - 141 - LRB103 43686 LNS 77044 b
5068	5068	1 June 1, 2023, the long-term renewable resources
5069	5069	2 procurement plan may average the annual budgets over a
5070	5070	3 3-year period to account for program ramp-up. For the
5071	5071	4 delivery years beginning June 1, 2021, June 1, 2024, June
5072	5072	5 1, 2027, and June 1, 2030 and additional $10,000,000 shall
5073	5073	6 be provided to the Department of Commerce and Economic
5074	5074	7 Opportunity to implement the workforce development
5075	5075	8 programs and reporting as outlined in Section 16-108.12 of
5076	5076	9 the Public Utilities Act. In making the determinations
5077	5077	10 required under this subparagraph (O), the Commission shall
5078	5078	11 consider the experience and performance under the programs
5079	5079	12 and any evaluation reports. The Commission shall also
5080	5080	13 provide for an independent evaluation of those programs on
5081	5081	14 a periodic basis that are funded under this subparagraph
5082	5082	15 (O).
5083	5083	16 (P) All programs and procurements under this
5084	5084	17 subsection (c) shall be designed to encourage
5085	5085	18 participating projects to use a diverse and equitable
5086	5086	19 workforce and a diverse set of contractors, including
5087	5087	20 minority-owned businesses, disadvantaged businesses,
5088	5088	21 trade unions, graduates of any workforce training programs
5089	5089	22 administered under this Act, and small businesses.
5090	5090	23 The Agency shall develop a method to optimize
5091	5091	24 procurement of renewable energy credits from proposed
5092	5092	25 utility-scale projects that are located in communities
5093	5093	26 eligible to receive Energy Transition Community Grants
5094	5094
5095	5095
5096	5096
5097	5097
5098	5098
5099	5099	SB3997 - 141 - LRB103 43686 LNS 77044 b
5100	5100
5101	5101
5102	5102	SB3997- 142 -LRB103 43686 LNS 77044 b SB3997 - 142 - LRB103 43686 LNS 77044 b
5103	5103	SB3997 - 142 - LRB103 43686 LNS 77044 b
5104	5104	1 pursuant to Section 10-20 of the Energy Community
5105	5105	2 Reinvestment Act. If this requirement conflicts with other
5106	5106	3 provisions of law or the Agency determines that full
5107	5107	4 compliance with the requirements of this subparagraph (P)
5108	5108	5 would be unreasonably costly or administratively
5109	5109	6 impractical, the Agency is to propose alternative
5110	5110	7 approaches to achieve development of renewable energy
5111	5111	8 resources in communities eligible to receive Energy
5112	5112	9 Transition Community Grants pursuant to Section 10-20 of
5113	5113	10 the Energy Community Reinvestment Act or seek an exemption
5114	5114	11 from this requirement from the Commission.
5115	5115	12 (Q) Each facility listed in subitems (i) through (ix)
5116	5116	13 of item (1) of this subparagraph (Q) for which a renewable
5117	5117	14 energy credit delivery contract is signed after the
5118	5118	15 effective date of this amendatory Act of the 102nd General
5119	5119	16 Assembly is subject to the following requirements through
5120	5120	17 the Agency's long-term renewable resources procurement
5121	5121	18 plan:
5122	5122	19 (1) Each facility shall be subject to the
5123	5123	20 prevailing wage requirements included in the
5124	5124	21 Prevailing Wage Act. The Agency shall require
5125	5125	22 verification that all construction performed on the
5126	5126	23 facility by the renewable energy credit delivery
5127	5127	24 contract holder, its contractors, or its
5128	5128	25 subcontractors relating to construction of the
5129	5129	26 facility is performed by construction employees
5130	5130
5131	5131
5132	5132
5133	5133
5134	5134
5135	5135	SB3997 - 142 - LRB103 43686 LNS 77044 b
5136	5136
5137	5137
5138	5138	SB3997- 143 -LRB103 43686 LNS 77044 b SB3997 - 143 - LRB103 43686 LNS 77044 b
5139	5139	SB3997 - 143 - LRB103 43686 LNS 77044 b
5140	5140	1 receiving an amount for that work equal to or greater
5141	5141	2 than the general prevailing rate, as that term is
5142	5142	3 defined in Section 3 of the Prevailing Wage Act. For
5143	5143	4 purposes of this item (1), "house of worship" means
5144	5144	5 property that is both (1) used exclusively by a
5145	5145	6 religious society or body of persons as a place for
5146	5146	7 religious exercise or religious worship and (2)
5147	5147	8 recognized as exempt from taxation pursuant to Section
5148	5148	9 15-40 of the Property Tax Code. This item (1) shall
5149	5149	10 apply to any the following:
5150	5150	11 (i) all new utility-scale wind projects;
5151	5151	12 (ii) all new utility-scale photovoltaic
5152	5152	13 projects and repowered wind projects;
5153	5153	14 (iii) all new brownfield photovoltaic
5154	5154	15 projects;
5155	5155	16 (iv) all new photovoltaic community renewable
5156	5156	17 energy facilities that qualify for item (iii) of
5157	5157	18 subparagraph (K) of this paragraph (1);
5158	5158	19 (v) all new community driven community
5159	5159	20 photovoltaic projects that qualify for item (v) of
5160	5160	21 subparagraph (K) of this paragraph (1);
5161	5161	22 (vi) all new photovoltaic projects on public
5162	5162	23 school land that qualify for item (iv) of
5163	5163	24 subparagraph (K) of this paragraph (1);
5164	5164	25 (vii) all new photovoltaic distributed
5165	5165	26 renewable energy generation devices that (1)
5166	5166
5167	5167
5168	5168
5169	5169
5170	5170
5171	5171	SB3997 - 143 - LRB103 43686 LNS 77044 b
5172	5172
5173	5173
5174	5174	SB3997- 144 -LRB103 43686 LNS 77044 b SB3997 - 144 - LRB103 43686 LNS 77044 b
5175	5175	SB3997 - 144 - LRB103 43686 LNS 77044 b
5176	5176	1 qualify for item (i) of subparagraph (K) of this
5177	5177	2 paragraph (1); (2) are not projects that serve
5178	5178	3 single-family or multi-family residential
5179	5179	4 buildings; and (3) are not houses of worship where
5180	5180	5 the aggregate capacity including collocated
5181	5181	6 projects would not exceed 100 kilowatts;
5182	5182	7 (viii) all new photovoltaic distributed
5183	5183	8 renewable energy generation devices that (1)
5184	5184	9 qualify for item (ii) of subparagraph (K) of this
5185	5185	10 paragraph (1); (2) are not projects that serve
5186	5186	11 single-family or multi-family residential
5187	5187	12 buildings; and (3) are not houses of worship where
5188	5188	13 the aggregate capacity including collocated
5189	5189	14 projects would not exceed 100 kilowatts;
5190	5190	15 (ix) all new, modernized, or retooled
5191	5191	16 hydropower facilities.
5192	5192	17 (2) Renewable energy credits procured from new
5193	5193	18 utility-scale wind projects, new utility-scale solar
5194	5194	19 projects, and new brownfield solar projects pursuant
5195	5195	20 to Agency procurement events occurring after the
5196	5196	21 effective date of this amendatory Act of the 102nd
5197	5197	22 General Assembly must be from facilities built by
5198	5198	23 general contractors that must enter into a project
5199	5199	24 labor agreement, as defined by this Act, prior to
5200	5200	25 construction. The project labor agreement shall be
5201	5201	26 filed with the Director in accordance with procedures
5202	5202
5203	5203
5204	5204
5205	5205
5206	5206
5207	5207	SB3997 - 144 - LRB103 43686 LNS 77044 b
5208	5208
5209	5209
5210	5210	SB3997- 145 -LRB103 43686 LNS 77044 b SB3997 - 145 - LRB103 43686 LNS 77044 b
5211	5211	SB3997 - 145 - LRB103 43686 LNS 77044 b
5212	5212	1 established by the Agency through its long-term
5213	5213	2 renewable resources procurement plan. Any information
5214	5214	3 submitted to the Agency in this item (2) shall be
5215	5215	4 considered commercially sensitive information. At a
5216	5216	5 minimum, the project labor agreement must provide the
5217	5217	6 names, addresses, and occupations of the owner of the
5218	5218	7 plant and the individuals representing the labor
5219	5219	8 organization employees participating in the project
5220	5220	9 labor agreement consistent with the Project Labor
5221	5221	10 Agreements Act. The agreement must also specify the
5222	5222	11 terms and conditions as defined by this Act.
5223	5223	12 (3) It is the intent of this Section to ensure that
5224	5224	13 economic development occurs across Illinois
5225	5225	14 communities, that emerging businesses may grow, and
5226	5226	15 that there is improved access to the clean energy
5227	5227	16 economy by persons who have greater economic burdens
5228	5228	17 to success. The Agency shall take into consideration
5229	5229	18 the unique cost of compliance of this subparagraph (Q)
5230	5230	19 that might be borne by equity eligible contractors,
5231	5231	20 shall include such costs when determining the price of
5232	5232	21 renewable energy credits in the Adjustable Block
5233	5233	22 program, and shall take such costs into consideration
5234	5234	23 in a nondiscriminatory manner when comparing bids for
5235	5235	24 competitive procurements. The Agency shall consider
5236	5236	25 costs associated with compliance whether in the
5237	5237	26 development, financing, or construction of projects.
5238	5238
5239	5239
5240	5240
5241	5241
5242	5242
5243	5243	SB3997 - 145 - LRB103 43686 LNS 77044 b
5244	5244
5245	5245
5246	5246	SB3997- 146 -LRB103 43686 LNS 77044 b SB3997 - 146 - LRB103 43686 LNS 77044 b
5247	5247	SB3997 - 146 - LRB103 43686 LNS 77044 b
5248	5248	1 The Agency shall periodically review the assumptions
5249	5249	2 in these costs and may adjust prices, in compliance
5250	5250	3 with subparagraph (M) of this paragraph (1).
5251	5251	4 (R) In its long-term renewable resources procurement
5252	5252	5 plan, the Agency shall establish a self-direct renewable
5253	5253	6 portfolio standard compliance program for eligible
5254	5254	7 self-direct customers that purchase renewable energy
5255	5255	8 credits from utility-scale wind and solar projects through
5256	5256	9 long-term agreements for purchase of renewable energy
5257	5257	10 credits as described in this Section. Such long-term
5258	5258	11 agreements may include the purchase of energy or other
5259	5259	12 products on a physical or financial basis and may involve
5260	5260	13 an alternative retail electric supplier as defined in
5261	5261	14 Section 16-102 of the Public Utilities Act. This program
5262	5262	15 shall take effect in the delivery year commencing June 1,
5263	5263	16 2023.
5264	5264	17 (1) For the purposes of this subparagraph:
5265	5265	18 "Eligible self-direct customer" means any retail
5266	5266	19 customers of an electric utility that serves 3,000,000
5267	5267	20 or more retail customers in the State and whose total
5268	5268	21 highest 30-minute demand was more than 10,000
5269	5269	22 kilowatts, or any retail customers of an electric
5270	5270	23 utility that serves less than 3,000,000 retail
5271	5271	24 customers but more than 500,000 retail customers in
5272	5272	25 the State and whose total highest 15-minute demand was
5273	5273	26 more than 10,000 kilowatts.
5274	5274
5275	5275
5276	5276
5277	5277
5278	5278
5279	5279	SB3997 - 146 - LRB103 43686 LNS 77044 b
5280	5280
5281	5281
5282	5282	SB3997- 147 -LRB103 43686 LNS 77044 b SB3997 - 147 - LRB103 43686 LNS 77044 b
5283	5283	SB3997 - 147 - LRB103 43686 LNS 77044 b
5284	5284	1 "Retail customer" has the meaning set forth in
5285	5285	2 Section 16-102 of the Public Utilities Act and
5286	5286	3 multiple retail customer accounts under the same
5287	5287	4 corporate parent may aggregate their account demands
5288	5288	5 to meet the 10,000 kilowatt threshold. The criteria
5289	5289	6 for determining whether this subparagraph is
5290	5290	7 applicable to a retail customer shall be based on the
5291	5291	8 12 consecutive billing periods prior to the start of
5292	5292	9 the year in which the application is filed.
5293	5293	10 (2) For renewable energy credits to count toward
5294	5294	11 the self-direct renewable portfolio standard
5295	5295	12 compliance program, they must:
5296	5296	13 (i) qualify as renewable energy credits as
5297	5297	14 defined in Section 1-10 of this Act;
5298	5298	15 (ii) be sourced from one or more renewable
5299	5299	16 energy generating facilities that comply with the
5300	5300	17 geographic requirements as set forth in
5301	5301	18 subparagraph (I) of paragraph (1) of subsection
5302	5302	19 (c) as interpreted through the Agency's long-term
5303	5303	20 renewable resources procurement plan, or, where
5304	5304	21 applicable, the geographic requirements that
5305	5305	22 governed utility-scale renewable energy credits at
5306	5306	23 the time the eligible self-direct customer entered
5307	5307	24 into the applicable renewable energy credit
5308	5308	25 purchase agreement;
5309	5309	26 (iii) be procured through long-term contracts
5310	5310
5311	5311
5312	5312
5313	5313
5314	5314
5315	5315	SB3997 - 147 - LRB103 43686 LNS 77044 b
5316	5316
5317	5317
5318	5318	SB3997- 148 -LRB103 43686 LNS 77044 b SB3997 - 148 - LRB103 43686 LNS 77044 b
5319	5319	SB3997 - 148 - LRB103 43686 LNS 77044 b
5320	5320	1 with term lengths of at least 10 years either
5321	5321	2 directly with the renewable energy generating
5322	5322	3 facility or through a bundled power purchase
5323	5323	4 agreement, a virtual power purchase agreement, an
5324	5324	5 agreement between the renewable generating
5325	5325	6 facility, an alternative retail electric supplier,
5326	5326	7 and the customer, or such other structure as is
5327	5327	8 permissible under this subparagraph (R);
5328	5328	9 (iv) be equivalent in volume to at least 40%
5329	5329	10 of the eligible self-direct customer's usage,
5330	5330	11 determined annually by the eligible self-direct
5331	5331	12 customer's usage during the previous delivery
5332	5332	13 year, measured to the nearest megawatt-hour;
5333	5333	14 (v) be retired by or on behalf of the large
5334	5334	15 energy customer;
5335	5335	16 (vi) be sourced from new utility-scale wind
5336	5336	17 projects or new utility-scale solar projects; and
5337	5337	18 (vii) if the contracts for renewable energy
5338	5338	19 credits are entered into after the effective date
5339	5339	20 of this amendatory Act of the 102nd General
5340	5340	21 Assembly, the new utility-scale wind projects or
5341	5341	22 new utility-scale solar projects must comply with
5342	5342	23 the requirements established in subparagraphs (P)
5343	5343	24 and (Q) of paragraph (1) of this subsection (c)
5344	5344	25 and subsection (c-10).
5345	5345	26 (3) The self-direct renewable portfolio standard
5346	5346
5347	5347
5348	5348
5349	5349
5350	5350
5351	5351	SB3997 - 148 - LRB103 43686 LNS 77044 b
5352	5352
5353	5353
5354	5354	SB3997- 149 -LRB103 43686 LNS 77044 b SB3997 - 149 - LRB103 43686 LNS 77044 b
5355	5355	SB3997 - 149 - LRB103 43686 LNS 77044 b
5356	5356	1 compliance program shall be designed to allow eligible
5357	5357	2 self-direct customers to procure new renewable energy
5358	5358	3 credits from new utility-scale wind projects or new
5359	5359	4 utility-scale photovoltaic projects. The Agency shall
5360	5360	5 annually determine the amount of utility-scale
5361	5361	6 renewable energy credits it will include each year
5362	5362	7 from the self-direct renewable portfolio standard
5363	5363	8 compliance program, subject to receiving qualifying
5364	5364	9 applications. In making this determination, the Agency
5365	5365	10 shall evaluate publicly available analyses and studies
5366	5366	11 of the potential market size for utility-scale
5367	5367	12 renewable energy long-term purchase agreements by
5368	5368	13 commercial and industrial energy customers and make
5369	5369	14 that report publicly available. If demand for
5370	5370	15 participation in the self-direct renewable portfolio
5371	5371	16 standard compliance program exceeds availability, the
5372	5372	17 Agency shall ensure participation is evenly split
5373	5373	18 between commercial and industrial users to the extent
5374	5374	19 there is sufficient demand from both customer classes.
5375	5375	20 Each renewable energy credit procured pursuant to this
5376	5376	21 subparagraph (R) by a self-direct customer shall
5377	5377	22 reduce the total volume of renewable energy credits
5378	5378	23 the Agency is otherwise required to procure from new
5379	5379	24 utility-scale projects pursuant to subparagraph (C) of
5380	5380	25 paragraph (1) of this subsection (c) on behalf of
5381	5381	26 contracting utilities where the eligible self-direct
5382	5382
5383	5383
5384	5384
5385	5385
5386	5386
5387	5387	SB3997 - 149 - LRB103 43686 LNS 77044 b
5388	5388
5389	5389
5390	5390	SB3997- 150 -LRB103 43686 LNS 77044 b SB3997 - 150 - LRB103 43686 LNS 77044 b
5391	5391	SB3997 - 150 - LRB103 43686 LNS 77044 b
5392	5392	1 customer is located. The self-direct customer shall
5393	5393	2 file an annual compliance report with the Agency
5394	5394	3 pursuant to terms established by the Agency through
5395	5395	4 its long-term renewable resources procurement plan to
5396	5396	5 be eligible for participation in this program.
5397	5397	6 Customers must provide the Agency with their most
5398	5398	7 recent electricity billing statements or other
5399	5399	8 information deemed necessary by the Agency to
5400	5400	9 demonstrate they are an eligible self-direct customer.
5401	5401	10 (4) The Commission shall approve a reduction in
5402	5402	11 the volumetric charges collected pursuant to Section
5403	5403	12 16-108 of the Public Utilities Act for approved
5404	5404	13 eligible self-direct customers equivalent to the
5405	5405	14 anticipated cost of renewable energy credit deliveries
5406	5406	15 under contracts for new utility-scale wind and new
5407	5407	16 utility-scale solar entered for each delivery year
5408	5408	17 after the large energy customer begins retiring
5409	5409	18 eligible new utility scale renewable energy credits
5410	5410	19 for self-compliance. The self-direct credit amount
5411	5411	20 shall be determined annually and is equal to the
5412	5412	21 estimated portion of the cost authorized by
5413	5413	22 subparagraph (E) of paragraph (1) of this subsection
5414	5414	23 (c) that supported the annual procurement of
5415	5415	24 utility-scale renewable energy credits in the prior
5416	5416	25 delivery year using a methodology described in the
5417	5417	26 long-term renewable resources procurement plan,
5418	5418
5419	5419
5420	5420
5421	5421
5422	5422
5423	5423	SB3997 - 150 - LRB103 43686 LNS 77044 b
5424	5424
5425	5425
5426	5426	SB3997- 151 -LRB103 43686 LNS 77044 b SB3997 - 151 - LRB103 43686 LNS 77044 b
5427	5427	SB3997 - 151 - LRB103 43686 LNS 77044 b
5428	5428	1 expressed on a per kilowatthour basis, and does not
5429	5429	2 include (i) costs associated with any contracts
5430	5430	3 entered into before the delivery year in which the
5431	5431	4 customer files the initial compliance report to be
5432	5432	5 eligible for participation in the self-direct program,
5433	5433	6 and (ii) costs associated with procuring renewable
5434	5434	7 energy credits through existing and future contracts
5435	5435	8 through the Adjustable Block Program, subsection (c-5)
5436	5436	9 of this Section 1-75, and the Solar for All Program.
5437	5437	10 The Agency shall assist the Commission in determining
5438	5438	11 the current and future costs. The Agency must
5439	5439	12 determine the self-direct credit amount for new and
5440	5440	13 existing eligible self-direct customers and submit
5441	5441	14 this to the Commission in an annual compliance filing.
5442	5442	15 The Commission must approve the self-direct credit
5443	5443	16 amount by June 1, 2023 and June 1 of each delivery year
5444	5444	17 thereafter.
5445	5445	18 (5) Customers described in this subparagraph (R)
5446	5446	19 shall apply, on a form developed by the Agency, to the
5447	5447	20 Agency to be designated as a self-direct eligible
5448	5448	21 customer. Once the Agency determines that a
5449	5449	22 self-direct customer is eligible for participation in
5450	5450	23 the program, the self-direct customer will remain
5451	5451	24 eligible until the end of the term of the contract.
5452	5452	25 Thereafter, application may be made not less than 12
5453	5453	26 months before the filing date of the long-term
5454	5454
5455	5455
5456	5456
5457	5457
5458	5458
5459	5459	SB3997 - 151 - LRB103 43686 LNS 77044 b
5460	5460
5461	5461
5462	5462	SB3997- 152 -LRB103 43686 LNS 77044 b SB3997 - 152 - LRB103 43686 LNS 77044 b
5463	5463	SB3997 - 152 - LRB103 43686 LNS 77044 b
5464	5464	1 renewable resources procurement plan described in this
5465	5465	2 Act. At a minimum, such application shall contain the
5466	5466	3 following:
5467	5467	4 (i) the customer's certification that, at the
5468	5468	5 time of the customer's application, the customer
5469	5469	6 qualifies to be a self-direct eligible customer,
5470	5470	7 including documents demonstrating that
5471	5471	8 qualification;
5472	5472	9 (ii) the customer's certification that the
5473	5473	10 customer has entered into or will enter into by
5474	5474	11 the beginning of the applicable procurement year,
5475	5475	12 one or more bilateral contracts for new wind
5476	5476	13 projects or new photovoltaic projects, including
5477	5477	14 supporting documentation;
5478	5478	15 (iii) certification that the contract or
5479	5479	16 contracts for new renewable energy resources are
5480	5480	17 long-term contracts with term lengths of at least
5481	5481	18 10 years, including supporting documentation;
5482	5482	19 (iv) certification of the quantities of
5483	5483	20 renewable energy credits that the customer will
5484	5484	21 purchase each year under such contract or
5485	5485	22 contracts, including supporting documentation;
5486	5486	23 (v) proof that the contract is sufficient to
5487	5487	24 produce renewable energy credits to be equivalent
5488	5488	25 in volume to at least 40% of the large energy
5489	5489	26 customer's usage from the previous delivery year,
5490	5490
5491	5491
5492	5492
5493	5493
5494	5494
5495	5495	SB3997 - 152 - LRB103 43686 LNS 77044 b
5496	5496
5497	5497
5498	5498	SB3997- 153 -LRB103 43686 LNS 77044 b SB3997 - 153 - LRB103 43686 LNS 77044 b
5499	5499	SB3997 - 153 - LRB103 43686 LNS 77044 b
5500	5500	1 measured to the nearest megawatt-hour; and
5501	5501	2 (vi) certification that the customer intends
5502	5502	3 to maintain the contract for the duration of the
5503	5503	4 length of the contract.
5504	5504	5 (6) If a customer receives the self-direct credit
5505	5505	6 but fails to properly procure and retire renewable
5506	5506	7 energy credits as required under this subparagraph
5507	5507	8 (R), the Commission, on petition from the Agency and
5508	5508	9 after notice and hearing, may direct such customer's
5509	5509	10 utility to recover the cost of the wrongfully received
5510	5510	11 self-direct credits plus interest through an adder to
5511	5511	12 charges assessed pursuant to Section 16-108 of the
5512	5512	13 Public Utilities Act. Self-direct customers who
5513	5513	14 knowingly fail to properly procure and retire
5514	5514	15 renewable energy credits and do not notify the Agency
5515	5515	16 are ineligible for continued participation in the
5516	5516	17 self-direct renewable portfolio standard compliance
5517	5517	18 program.
5518	5518	19 (2) (Blank).
5519	5519	20 (3) (Blank).
5520	5520	21 (4) The electric utility shall retire all renewable
5521	5521	22 energy credits used to comply with the standard.
5522	5522	23 (5) Beginning with the 2010 delivery year and ending
5523	5523	24 June 1, 2017, an electric utility subject to this
5524	5524	25 subsection (c) shall apply the lesser of the maximum
5525	5525	26 alternative compliance payment rate or the most recent
5526	5526
5527	5527
5528	5528
5529	5529
5530	5530
5531	5531	SB3997 - 153 - LRB103 43686 LNS 77044 b
5532	5532
5533	5533
5534	5534	SB3997- 154 -LRB103 43686 LNS 77044 b SB3997 - 154 - LRB103 43686 LNS 77044 b
5535	5535	SB3997 - 154 - LRB103 43686 LNS 77044 b
5536	5536	1 estimated alternative compliance payment rate for its
5537	5537	2 service territory for the corresponding compliance period,
5538	5538	3 established pursuant to subsection (d) of Section 16-115D
5539	5539	4 of the Public Utilities Act to its retail customers that
5540	5540	5 take service pursuant to the electric utility's hourly
5541	5541	6 pricing tariff or tariffs. The electric utility shall
5542	5542	7 retain all amounts collected as a result of the
5543	5543	8 application of the alternative compliance payment rate or
5544	5544	9 rates to such customers, and, beginning in 2011, the
5545	5545	10 utility shall include in the information provided under
5546	5546	11 item (1) of subsection (d) of Section 16-111.5 of the
5547	5547	12 Public Utilities Act the amounts collected under the
5548	5548	13 alternative compliance payment rate or rates for the prior
5549	5549	14 year ending May 31. Notwithstanding any limitation on the
5550	5550	15 procurement of renewable energy resources imposed by item
5551	5551	16 (2) of this subsection (c), the Agency shall increase its
5552	5552	17 spending on the purchase of renewable energy resources to
5553	5553	18 be procured by the electric utility for the next plan year
5554	5554	19 by an amount equal to the amounts collected by the utility
5555	5555	20 under the alternative compliance payment rate or rates in
5556	5556	21 the prior year ending May 31.
5557	5557	22 (6) The electric utility shall be entitled to recover
5558	5558	23 all of its costs associated with the procurement of
5559	5559	24 renewable energy credits under plans approved under this
5560	5560	25 Section and Section 16-111.5 of the Public Utilities Act.
5561	5561	26 These costs shall include associated reasonable expenses
5562	5562
5563	5563
5564	5564
5565	5565
5566	5566
5567	5567	SB3997 - 154 - LRB103 43686 LNS 77044 b
5568	5568
5569	5569
5570	5570	SB3997- 155 -LRB103 43686 LNS 77044 b SB3997 - 155 - LRB103 43686 LNS 77044 b
5571	5571	SB3997 - 155 - LRB103 43686 LNS 77044 b
5572	5572	1 for implementing the procurement programs, including, but
5573	5573	2 not limited to, the costs of administering and evaluating
5574	5574	3 the Adjustable Block program, through an automatic
5575	5575	4 adjustment clause tariff in accordance with subsection (k)
5576	5576	5 of Section 16-108 of the Public Utilities Act.
5577	5577	6 (7) Renewable energy credits procured from new
5578	5578	7 photovoltaic projects or new distributed renewable energy
5579	5579	8 generation devices under this Section after June 1, 2017
5580	5580	9 (the effective date of Public Act 99-906) must be procured
5581	5581	10 from devices installed by a qualified person in compliance
5582	5582	11 with the requirements of Section 16-128A of the Public
5583	5583	12 Utilities Act and any rules or regulations adopted
5584	5584	13 thereunder.
5585	5585	14 In meeting the renewable energy requirements of this
5586	5586	15 subsection (c), to the extent feasible and consistent with
5587	5587	16 State and federal law, the renewable energy credit
5588	5588	17 procurements, Adjustable Block solar program, and
5589	5589	18 community renewable generation program shall provide
5590	5590	19 employment opportunities for all segments of the
5591	5591	20 population and workforce, including minority-owned and
5592	5592	21 female-owned business enterprises, and shall not,
5593	5593	22 consistent with State and federal law, discriminate based
5594	5594	23 on race or socioeconomic status.
5595	5595	24 (c-5) Procurement of renewable energy credits from new
5596	5596	25 renewable energy facilities installed at or adjacent to the
5597	5597	26 sites of electric generating facilities that burn or burned
5598	5598
5599	5599
5600	5600
5601	5601
5602	5602
5603	5603	SB3997 - 155 - LRB103 43686 LNS 77044 b
5604	5604
5605	5605
5606	5606	SB3997- 156 -LRB103 43686 LNS 77044 b SB3997 - 156 - LRB103 43686 LNS 77044 b
5607	5607	SB3997 - 156 - LRB103 43686 LNS 77044 b
5608	5608	1 coal as their primary fuel source.
5609	5609	2 (1) In addition to the procurement of renewable energy
5610	5610	3 credits pursuant to long-term renewable resources
5611	5611	4 procurement plans in accordance with subsection (c) of
5612	5612	5 this Section and Section 16-111.5 of the Public Utilities
5613	5613	6 Act, the Agency shall conduct procurement events in
5614	5614	7 accordance with this subsection (c-5) for the procurement
5615	5615	8 by electric utilities that served more than 300,000 retail
5616	5616	9 customers in this State as of January 1, 2019 of renewable
5617	5617	10 energy credits from new renewable energy facilities to be
5618	5618	11 installed at or adjacent to the sites of electric
5619	5619	12 generating facilities that, as of January 1, 2016, burned
5620	5620	13 coal as their primary fuel source and meet the other
5621	5621	14 criteria specified in this subsection (c-5). For purposes
5622	5622	15 of this subsection (c-5), "new renewable energy facility"
5623	5623	16 means a new utility-scale solar project as defined in this
5624	5624	17 Section 1-75. The renewable energy credits procured
5625	5625	18 pursuant to this subsection (c-5) may be included or
5626	5626	19 counted for purposes of compliance with the amounts of
5627	5627	20 renewable energy credits required to be procured pursuant
5628	5628	21 to subsection (c) of this Section to the extent that there
5629	5629	22 are otherwise shortfalls in compliance with such
5630	5630	23 requirements. The procurement of renewable energy credits
5631	5631	24 by electric utilities pursuant to this subsection (c-5)
5632	5632	25 shall be funded solely by revenues collected from the Coal
5633	5633	26 to Solar and Energy Storage Initiative Charge provided for
5634	5634
5635	5635
5636	5636
5637	5637
5638	5638
5639	5639	SB3997 - 156 - LRB103 43686 LNS 77044 b
5640	5640
5641	5641
5642	5642	SB3997- 157 -LRB103 43686 LNS 77044 b SB3997 - 157 - LRB103 43686 LNS 77044 b
5643	5643	SB3997 - 157 - LRB103 43686 LNS 77044 b
5644	5644	1 in this subsection (c-5) and subsection (i-5) of Section
5645	5645	2 16-108 of the Public Utilities Act, shall not be funded by
5646	5646	3 revenues collected through any of the other funding
5647	5647	4 mechanisms provided for in subsection (c) of this Section,
5648	5648	5 and shall not be subject to the limitation imposed by
5649	5649	6 subsection (c) on charges to retail customers for costs to
5650	5650	7 procure renewable energy resources pursuant to subsection
5651	5651	8 (c), and shall not be subject to any other requirements or
5652	5652	9 limitations of subsection (c).
5653	5653	10 (2) The Agency shall conduct 2 procurement events to
5654	5654	11 select owners of electric generating facilities meeting
5655	5655	12 the eligibility criteria specified in this subsection
5656	5656	13 (c-5) to enter into long-term contracts to sell renewable
5657	5657	14 energy credits to electric utilities serving more than
5658	5658	15 300,000 retail customers in this State as of January 1,
5659	5659	16 2019. The first procurement event shall be conducted no
5660	5660	17 later than March 31, 2022, unless the Agency elects to
5661	5661	18 delay it, until no later than May 1, 2022, due to its
5662	5662	19 overall volume of work, and shall be to select owners of
5663	5663	20 electric generating facilities located in this State and
5664	5664	21 south of federal Interstate Highway 80 that meet the
5665	5665	22 eligibility criteria specified in this subsection (c-5).
5666	5666	23 The second procurement event shall be conducted no sooner
5667	5667	24 than September 30, 2022 and no later than October 31, 2022
5668	5668	25 and shall be to select owners of electric generating
5669	5669	26 facilities located anywhere in this State that meet the
5670	5670
5671	5671
5672	5672
5673	5673
5674	5674
5675	5675	SB3997 - 157 - LRB103 43686 LNS 77044 b
5676	5676
5677	5677
5678	5678	SB3997- 158 -LRB103 43686 LNS 77044 b SB3997 - 158 - LRB103 43686 LNS 77044 b
5679	5679	SB3997 - 158 - LRB103 43686 LNS 77044 b
5680	5680	1 eligibility criteria specified in this subsection (c-5).
5681	5681	2 The Agency shall establish and announce a time period,
5682	5682	3 which shall begin no later than 30 days prior to the
5683	5683	4 scheduled date for the procurement event, during which
5684	5684	5 applicants may submit applications to be selected as
5685	5685	6 suppliers of renewable energy credits pursuant to this
5686	5686	7 subsection (c-5). The eligibility criteria for selection
5687	5687	8 as a supplier of renewable energy credits pursuant to this
5688	5688	9 subsection (c-5) shall be as follows:
5689	5689	10 (A) The applicant owns an electric generating
5690	5690	11 facility located in this State that: (i) as of January
5691	5691	12 1, 2016, burned coal as its primary fuel to generate
5692	5692	13 electricity; and (ii) has, or had prior to retirement,
5693	5693	14 an electric generating capacity of at least 150
5694	5694	15 megawatts. The electric generating facility can be
5695	5695	16 either: (i) retired as of the date of the procurement
5696	5696	17 event; or (ii) still operating as of the date of the
5697	5697	18 procurement event.
5698	5698	19 (B) The applicant is not (i) an electric
5699	5699	20 cooperative as defined in Section 3-119 of the Public
5700	5700	21 Utilities Act, or (ii) an entity described in
5701	5701	22 subsection (b)(1) of Section 3-105 of the Public
5702	5702	23 Utilities Act, or an association or consortium of or
5703	5703	24 an entity owned by entities described in (i) or (ii);
5704	5704	25 and the coal-fueled electric generating facility was
5705	5705	26 at one time owned, in whole or in part, by a public
5706	5706
5707	5707
5708	5708
5709	5709
5710	5710
5711	5711	SB3997 - 158 - LRB103 43686 LNS 77044 b
5712	5712
5713	5713
5714	5714	SB3997- 159 -LRB103 43686 LNS 77044 b SB3997 - 159 - LRB103 43686 LNS 77044 b
5715	5715	SB3997 - 159 - LRB103 43686 LNS 77044 b
5716	5716	1 utility as defined in Section 3-105 of the Public
5717	5717	2 Utilities Act.
5718	5718	3 (C) If participating in the first procurement
5719	5719	4 event, the applicant proposes and commits to construct
5720	5720	5 and operate, at the site, and if necessary for
5721	5721	6 sufficient space on property adjacent to the existing
5722	5722	7 property, at which the electric generating facility
5723	5723	8 identified in paragraph (A) is located: (i) a new
5724	5724	9 renewable energy facility of at least 20 megawatts but
5725	5725	10 no more than 100 megawatts of electric generating
5726	5726	11 capacity, and (ii) an energy storage facility having a
5727	5727	12 storage capacity equal to at least 2 megawatts and at
5728	5728	13 most 10 megawatts. If participating in the second
5729	5729	14 procurement event, the applicant proposes and commits
5730	5730	15 to construct and operate, at the site, and if
5731	5731	16 necessary for sufficient space on property adjacent to
5732	5732	17 the existing property, at which the electric
5733	5733	18 generating facility identified in paragraph (A) is
5734	5734	19 located: (i) a new renewable energy facility of at
5735	5735	20 least 5 megawatts but no more than 20 megawatts of
5736	5736	21 electric generating capacity, and (ii) an energy
5737	5737	22 storage facility having a storage capacity equal to at
5738	5738	23 least 0.5 megawatts and at most one megawatt.
5739	5739	24 (D) The applicant agrees that the new renewable
5740	5740	25 energy facility and the energy storage facility will
5741	5741	26 be constructed or installed by a qualified entity or
5742	5742
5743	5743
5744	5744
5745	5745
5746	5746
5747	5747	SB3997 - 159 - LRB103 43686 LNS 77044 b
5748	5748
5749	5749
5750	5750	SB3997- 160 -LRB103 43686 LNS 77044 b SB3997 - 160 - LRB103 43686 LNS 77044 b
5751	5751	SB3997 - 160 - LRB103 43686 LNS 77044 b
5752	5752	1 entities in compliance with the requirements of
5753	5753	2 subsection (g) of Section 16-128A of the Public
5754	5754	3 Utilities Act and any rules adopted thereunder.
5755	5755	4 (E) The applicant agrees that personnel operating
5756	5756	5 the new renewable energy facility and the energy
5757	5757	6 storage facility will have the requisite skills,
5758	5758	7 knowledge, training, experience, and competence, which
5759	5759	8 may be demonstrated by completion or current
5760	5760	9 participation and ultimate completion by employees of
5761	5761	10 an accredited or otherwise recognized apprenticeship
5762	5762	11 program for the employee's particular craft, trade, or
5763	5763	12 skill, including through training and education
5764	5764	13 courses and opportunities offered by the owner to
5765	5765	14 employees of the coal-fueled electric generating
5766	5766	15 facility or by previous employment experience
5767	5767	16 performing the employee's particular work skill or
5768	5768	17 function.
5769	5769	18 (F) The applicant commits that not less than the
5770	5770	19 prevailing wage, as determined pursuant to the
5771	5771	20 Prevailing Wage Act, will be paid to the applicant's
5772	5772	21 employees engaged in construction activities
5773	5773	22 associated with the new renewable energy facility and
5774	5774	23 the new energy storage facility and to the employees
5775	5775	24 of applicant's contractors engaged in construction
5776	5776	25 activities associated with the new renewable energy
5777	5777	26 facility and the new energy storage facility, and
5778	5778
5779	5779
5780	5780
5781	5781
5782	5782
5783	5783	SB3997 - 160 - LRB103 43686 LNS 77044 b
5784	5784
5785	5785
5786	5786	SB3997- 161 -LRB103 43686 LNS 77044 b SB3997 - 161 - LRB103 43686 LNS 77044 b
5787	5787	SB3997 - 161 - LRB103 43686 LNS 77044 b
5788	5788	1 that, on or before the commercial operation date of
5789	5789	2 the new renewable energy facility, the applicant shall
5790	5790	3 file a report with the Agency certifying that the
5791	5791	4 requirements of this subparagraph (F) have been met.
5792	5792	5 (G) The applicant commits that if selected, it
5793	5793	6 will negotiate a project labor agreement for the
5794	5794	7 construction of the new renewable energy facility and
5795	5795	8 associated energy storage facility that includes
5796	5796	9 provisions requiring the parties to the agreement to
5797	5797	10 work together to establish diversity threshold
5798	5798	11 requirements and to ensure best efforts to meet
5799	5799	12 diversity targets, improve diversity at the applicable
5800	5800	13 job site, create diverse apprenticeship opportunities,
5801	5801	14 and create opportunities to employ former coal-fired
5802	5802	15 power plant workers.
5803	5803	16 (H) The applicant commits to enter into a contract
5804	5804	17 or contracts for the applicable duration to provide
5805	5805	18 specified numbers of renewable energy credits each
5806	5806	19 year from the new renewable energy facility to
5807	5807	20 electric utilities that served more than 300,000
5808	5808	21 retail customers in this State as of January 1, 2019,
5809	5809	22 at a price of $30 per renewable energy credit. The
5810	5810	23 price per renewable energy credit shall be fixed at
5811	5811	24 $30 for the applicable duration and the renewable
5812	5812	25 energy credits shall not be indexed renewable energy
5813	5813	26 credits as provided for in item (v) of subparagraph
5814	5814
5815	5815
5816	5816
5817	5817
5818	5818
5819	5819	SB3997 - 161 - LRB103 43686 LNS 77044 b
5820	5820
5821	5821
5822	5822	SB3997- 162 -LRB103 43686 LNS 77044 b SB3997 - 162 - LRB103 43686 LNS 77044 b
5823	5823	SB3997 - 162 - LRB103 43686 LNS 77044 b
5824	5824	1 (G) of paragraph (1) of subsection (c) of Section 1-75
5825	5825	2 of this Act. The applicable duration of each contract
5826	5826	3 shall be 20 years, unless the applicant is physically
5827	5827	4 interconnected to the PJM Interconnection, LLC
5828	5828	5 transmission grid and had a generating capacity of at
5829	5829	6 least 1,200 megawatts as of January 1, 2021, in which
5830	5830	7 case the applicable duration of the contract shall be
5831	5831	8 15 years.
5832	5832	9 (I) The applicant's application is certified by an
5833	5833	10 officer of the applicant and by an officer of the
5834	5834	11 applicant's ultimate parent company, if any.
5835	5835	12 (3) An applicant may submit applications to contract
5836	5836	13 to supply renewable energy credits from more than one new
5837	5837	14 renewable energy facility to be constructed at or adjacent
5838	5838	15 to one or more qualifying electric generating facilities
5839	5839	16 owned by the applicant. The Agency may select new
5840	5840	17 renewable energy facilities to be located at or adjacent
5841	5841	18 to the sites of more than one qualifying electric
5842	5842	19 generation facility owned by an applicant to contract with
5843	5843	20 electric utilities to supply renewable energy credits from
5844	5844	21 such facilities.
5845	5845	22 (4) The Agency shall assess fees to each applicant to
5846	5846	23 recover the Agency's costs incurred in receiving and
5847	5847	24 evaluating applications, conducting the procurement event,
5848	5848	25 developing contracts for sale, delivery and purchase of
5849	5849	26 renewable energy credits, and monitoring the
5850	5850
5851	5851
5852	5852
5853	5853
5854	5854
5855	5855	SB3997 - 162 - LRB103 43686 LNS 77044 b
5856	5856
5857	5857
5858	5858	SB3997- 163 -LRB103 43686 LNS 77044 b SB3997 - 163 - LRB103 43686 LNS 77044 b
5859	5859	SB3997 - 163 - LRB103 43686 LNS 77044 b
5860	5860	1 administration of such contracts, as provided for in this
5861	5861	2 subsection (c-5), including fees paid to a procurement
5862	5862	3 administrator retained by the Agency for one or more of
5863	5863	4 these purposes.
5864	5864	5 (5) The Agency shall select the applicants and the new
5865	5865	6 renewable energy facilities to contract with electric
5866	5866	7 utilities to supply renewable energy credits in accordance
5867	5867	8 with this subsection (c-5). In the first procurement
5868	5868	9 event, the Agency shall select applicants and new
5869	5869	10 renewable energy facilities to supply renewable energy
5870	5870	11 credits, at a price of $30 per renewable energy credit,
5871	5871	12 aggregating to no less than 400,000 renewable energy
5872	5872	13 credits per year for the applicable duration, assuming
5873	5873	14 sufficient qualifying applications to supply, in the
5874	5874	15 aggregate, at least that amount of renewable energy
5875	5875	16 credits per year; and not more than 580,000 renewable
5876	5876	17 energy credits per year for the applicable duration. In
5877	5877	18 the second procurement event, the Agency shall select
5878	5878	19 applicants and new renewable energy facilities to supply
5879	5879	20 renewable energy credits, at a price of $30 per renewable
5880	5880	21 energy credit, aggregating to no more than 625,000
5881	5881	22 renewable energy credits per year less the amount of
5882	5882	23 renewable energy credits each year contracted for as a
5883	5883	24 result of the first procurement event, for the applicable
5884	5884	25 durations. The number of renewable energy credits to be
5885	5885	26 procured as specified in this paragraph (5) shall not be
5886	5886
5887	5887
5888	5888
5889	5889
5890	5890
5891	5891	SB3997 - 163 - LRB103 43686 LNS 77044 b
5892	5892
5893	5893
5894	5894	SB3997- 164 -LRB103 43686 LNS 77044 b SB3997 - 164 - LRB103 43686 LNS 77044 b
5895	5895	SB3997 - 164 - LRB103 43686 LNS 77044 b
5896	5896	1 reduced based on renewable energy credits procured in the
5897	5897	2 self-direct renewable energy credit compliance program
5898	5898	3 established pursuant to subparagraph (R) of paragraph (1)
5899	5899	4 of subsection (c) of Section 1-75.
5900	5900	5 (6) The obligation to purchase renewable energy
5901	5901	6 credits from the applicants and their new renewable energy
5902	5902	7 facilities selected by the Agency shall be allocated to
5903	5903	8 the electric utilities based on their respective
5904	5904	9 percentages of kilowatthours delivered to delivery
5905	5905	10 services customers to the aggregate kilowatthour
5906	5906	11 deliveries by the electric utilities to delivery services
5907	5907	12 customers for the year ended December 31, 2021. In order
5908	5908	13 to achieve these allocation percentages between or among
5909	5909	14 the electric utilities, the Agency shall require each
5910	5910	15 applicant that is selected in the procurement event to
5911	5911	16 enter into a contract with each electric utility for the
5912	5912	17 sale and purchase of renewable energy credits from each
5913	5913	18 new renewable energy facility to be constructed and
5914	5914	19 operated by the applicant, with the sale and purchase
5915	5915	20 obligations under the contracts to aggregate to the total
5916	5916	21 number of renewable energy credits per year to be supplied
5917	5917	22 by the applicant from the new renewable energy facility.
5918	5918	23 (7) The Agency shall submit its proposed selection of
5919	5919	24 applicants, new renewable energy facilities to be
5920	5920	25 constructed, and renewable energy credit amounts for each
5921	5921	26 procurement event to the Commission for approval. The
5922	5922
5923	5923
5924	5924
5925	5925
5926	5926
5927	5927	SB3997 - 164 - LRB103 43686 LNS 77044 b
5928	5928
5929	5929
5930	5930	SB3997- 165 -LRB103 43686 LNS 77044 b SB3997 - 165 - LRB103 43686 LNS 77044 b
5931	5931	SB3997 - 165 - LRB103 43686 LNS 77044 b
5932	5932	1 Commission shall, within 2 business days after receipt of
5933	5933	2 the Agency's proposed selections, approve the proposed
5934	5934	3 selections if it determines that the applicants and the
5935	5935	4 new renewable energy facilities to be constructed meet the
5936	5936	5 selection criteria set forth in this subsection (c-5) and
5937	5937	6 that the Agency seeks approval for contracts of applicable
5938	5938	7 durations aggregating to no more than the maximum amount
5939	5939	8 of renewable energy credits per year authorized by this
5940	5940	9 subsection (c-5) for the procurement event, at a price of
5941	5941	10 $30 per renewable energy credit.
5942	5942	11 (8) The Agency, in conjunction with its procurement
5943	5943	12 administrator if one is retained, the electric utilities,
5944	5944	13 and potential applicants for contracts to produce and
5945	5945	14 supply renewable energy credits pursuant to this
5946	5946	15 subsection (c-5), shall develop a standard form contract
5947	5947	16 for the sale, delivery and purchase of renewable energy
5948	5948	17 credits pursuant to this subsection (c-5). Each contract
5949	5949	18 resulting from the first procurement event shall allow for
5950	5950	19 a commercial operation date for the new renewable energy
5951	5951	20 facility of either June 1, 2023 or June 1, 2024, with such
5952	5952	21 dates subject to adjustment as provided in this paragraph.
5953	5953	22 Each contract resulting from the second procurement event
5954	5954	23 shall provide for a commercial operation date on June 1
5955	5955	24 next occurring up to 48 months after execution of the
5956	5956	25 contract. Each contract shall provide that the owner shall
5957	5957	26 receive payments for renewable energy credits for the
5958	5958
5959	5959
5960	5960
5961	5961
5962	5962
5963	5963	SB3997 - 165 - LRB103 43686 LNS 77044 b
5964	5964
5965	5965
5966	5966	SB3997- 166 -LRB103 43686 LNS 77044 b SB3997 - 166 - LRB103 43686 LNS 77044 b
5967	5967	SB3997 - 166 - LRB103 43686 LNS 77044 b
5968	5968	1 applicable durations beginning with the commercial
5969	5969	2 operation date of the new renewable energy facility. The
5970	5970	3 form contract shall provide for adjustments to the
5971	5971	4 commercial operation and payment start dates as needed due
5972	5972	5 to any delays in completing the procurement and
5973	5973	6 contracting processes, in finalizing interconnection
5974	5974	7 agreements and installing interconnection facilities, and
5975	5975	8 in obtaining other necessary governmental permits and
5976	5976	9 approvals. The form contract shall be, to the maximum
5977	5977	10 extent possible, consistent with standard electric
5978	5978	11 industry contracts for sale, delivery, and purchase of
5979	5979	12 renewable energy credits while taking into account the
5980	5980	13 specific requirements of this subsection (c-5). The form
5981	5981	14 contract shall provide for over-delivery and
5982	5982	15 under-delivery of renewable energy credits within
5983	5983	16 reasonable ranges during each 12-month period and penalty,
5984	5984	17 default, and enforcement provisions for failure of the
5985	5985	18 selling party to deliver renewable energy credits as
5986	5986	19 specified in the contract and to comply with the
5987	5987	20 requirements of this subsection (c-5). The standard form
5988	5988	21 contract shall specify that all renewable energy credits
5989	5989	22 delivered to the electric utility pursuant to the contract
5990	5990	23 shall be retired. The Agency shall make the proposed
5991	5991	24 contracts available for a reasonable period for comment by
5992	5992	25 potential applicants, and shall publish the final form
5993	5993	26 contract at least 30 days before the date of the first
5994	5994
5995	5995
5996	5996
5997	5997
5998	5998
5999	5999	SB3997 - 166 - LRB103 43686 LNS 77044 b
6000	6000
6001	6001
6002	6002	SB3997- 167 -LRB103 43686 LNS 77044 b SB3997 - 167 - LRB103 43686 LNS 77044 b
6003	6003	SB3997 - 167 - LRB103 43686 LNS 77044 b
6004	6004	1 procurement event.
6005	6005	2 (9) Coal to Solar and Energy Storage Initiative
6006	6006	3 Charge.
6007	6007	4 (A) By no later than July 1, 2022, each electric
6008	6008	5 utility that served more than 300,000 retail customers
6009	6009	6 in this State as of January 1, 2019 shall file a tariff
6010	6010	7 with the Commission for the billing and collection of
6011	6011	8 a Coal to Solar and Energy Storage Initiative Charge
6012	6012	9 in accordance with subsection (i-5) of Section 16-108
6013	6013	10 of the Public Utilities Act, with such tariff to be
6014	6014	11 effective, following review and approval or
6015	6015	12 modification by the Commission, beginning January 1,
6016	6016	13 2023. The tariff shall provide for the calculation and
6017	6017	14 setting of the electric utility's Coal to Solar and
6018	6018	15 Energy Storage Initiative Charge to collect revenues
6019	6019	16 estimated to be sufficient, in the aggregate, (i) to
6020	6020	17 enable the electric utility to pay for the renewable
6021	6021	18 energy credits it has contracted to purchase in the
6022	6022	19 delivery year beginning June 1, 2023 and each delivery
6023	6023	20 year thereafter from new renewable energy facilities
6024	6024	21 located at the sites of qualifying electric generating
6025	6025	22 facilities, and (ii) to fund the grant payments to be
6026	6026	23 made in each delivery year by the Department of
6027	6027	24 Commerce and Economic Opportunity, or any successor
6028	6028	25 department or agency, which shall be referred to in
6029	6029	26 this subsection (c-5) as the Department, pursuant to
6030	6030
6031	6031
6032	6032
6033	6033
6034	6034
6035	6035	SB3997 - 167 - LRB103 43686 LNS 77044 b
6036	6036
6037	6037
6038	6038	SB3997- 168 -LRB103 43686 LNS 77044 b SB3997 - 168 - LRB103 43686 LNS 77044 b
6039	6039	SB3997 - 168 - LRB103 43686 LNS 77044 b
6040	6040	1 paragraph (10) of this subsection (c-5). The electric
6041	6041	2 utility's tariff shall provide for the billing and
6042	6042	3 collection of the Coal to Solar and Energy Storage
6043	6043	4 Initiative Charge on each kilowatthour of electricity
6044	6044	5 delivered to its delivery services customers within
6045	6045	6 its service territory and shall provide for an annual
6046	6046	7 reconciliation of revenues collected with actual
6047	6047	8 costs, in accordance with subsection (i-5) of Section
6048	6048	9 16-108 of the Public Utilities Act.
6049	6049	10 (B) Each electric utility shall remit on a monthly
6050	6050	11 basis to the State Treasurer, for deposit in the Coal
6051	6051	12 to Solar and Energy Storage Initiative Fund provided
6052	6052	13 for in this subsection (c-5), the electric utility's
6053	6053	14 collections of the Coal to Solar and Energy Storage
6054	6054	15 Initiative Charge in the amount estimated to be needed
6055	6055	16 by the Department for grant payments pursuant to grant
6056	6056	17 contracts entered into by the Department pursuant to
6057	6057	18 paragraph (10) of this subsection (c-5).
6058	6058	19 (10) Coal to Solar and Energy Storage Initiative Fund.
6059	6059	20 (A) The Coal to Solar and Energy Storage
6060	6060	21 Initiative Fund is established as a special fund in
6061	6061	22 the State treasury. The Coal to Solar and Energy
6062	6062	23 Storage Initiative Fund is authorized to receive, by
6063	6063	24 statutory deposit, that portion specified in item (B)
6064	6064	25 of paragraph (9) of this subsection (c-5) of moneys
6065	6065	26 collected by electric utilities through imposition of
6066	6066
6067	6067
6068	6068
6069	6069
6070	6070
6071	6071	SB3997 - 168 - LRB103 43686 LNS 77044 b
6072	6072
6073	6073
6074	6074	SB3997- 169 -LRB103 43686 LNS 77044 b SB3997 - 169 - LRB103 43686 LNS 77044 b
6075	6075	SB3997 - 169 - LRB103 43686 LNS 77044 b
6076	6076	1 the Coal to Solar and Energy Storage Initiative Charge
6077	6077	2 required by this subsection (c-5). The Coal to Solar
6078	6078	3 and Energy Storage Initiative Fund shall be
6079	6079	4 administered by the Department to provide grants to
6080	6080	5 support the installation and operation of energy
6081	6081	6 storage facilities at the sites of qualifying electric
6082	6082	7 generating facilities meeting the criteria specified
6083	6083	8 in this paragraph (10).
6084	6084	9 (B) The Coal to Solar and Energy Storage
6085	6085	10 Initiative Fund shall not be subject to sweeps,
6086	6086	11 administrative charges, or chargebacks, including, but
6087	6087	12 not limited to, those authorized under Section 8h of
6088	6088	13 the State Finance Act, that would in any way result in
6089	6089	14 the transfer of those funds from the Coal to Solar and
6090	6090	15 Energy Storage Initiative Fund to any other fund of
6091	6091	16 this State or in having any such funds utilized for any
6092	6092	17 purpose other than the express purposes set forth in
6093	6093	18 this paragraph (10).
6094	6094	19 (C) The Department shall utilize up to
6095	6095	20 $280,500,000 in the Coal to Solar and Energy Storage
6096	6096	21 Initiative Fund for grants, assuming sufficient
6097	6097	22 qualifying applicants, to support installation of
6098	6098	23 energy storage facilities at the sites of up to 3
6099	6099	24 qualifying electric generating facilities located in
6100	6100	25 the Midcontinent Independent System Operator, Inc.,
6101	6101	26 region in Illinois and the sites of up to 2 qualifying
6102	6102
6103	6103
6104	6104
6105	6105
6106	6106
6107	6107	SB3997 - 169 - LRB103 43686 LNS 77044 b
6108	6108
6109	6109
6110	6110	SB3997- 170 -LRB103 43686 LNS 77044 b SB3997 - 170 - LRB103 43686 LNS 77044 b
6111	6111	SB3997 - 170 - LRB103 43686 LNS 77044 b
6112	6112	1 electric generating facilities located in the PJM
6113	6113	2 Interconnection, LLC region in Illinois that meet the
6114	6114	3 criteria set forth in this subparagraph (C). The
6115	6115	4 criteria for receipt of a grant pursuant to this
6116	6116	5 subparagraph (C) are as follows:
6117	6117	6 (1) the electric generating facility at the
6118	6118	7 site has, or had prior to retirement, an electric
6119	6119	8 generating capacity of at least 150 megawatts;
6120	6120	9 (2) the electric generating facility burns (or
6121	6121	10 burned prior to retirement) coal as its primary
6122	6122	11 source of fuel;
6123	6123	12 (3) if the electric generating facility is
6124	6124	13 retired, it was retired subsequent to January 1,
6125	6125	14 2016;
6126	6126	15 (4) the owner of the electric generating
6127	6127	16 facility has not been selected by the Agency
6128	6128	17 pursuant to this subsection (c-5) of this Section
6129	6129	18 to enter into a contract to sell renewable energy
6130	6130	19 credits to one or more electric utilities from a
6131	6131	20 new renewable energy facility located or to be
6132	6132	21 located at or adjacent to the site at which the
6133	6133	22 electric generating facility is located;
6134	6134	23 (5) the electric generating facility located
6135	6135	24 at the site was at one time owned, in whole or in
6136	6136	25 part, by a public utility as defined in Section
6137	6137	26 3-105 of the Public Utilities Act;
6138	6138
6139	6139
6140	6140
6141	6141
6142	6142
6143	6143	SB3997 - 170 - LRB103 43686 LNS 77044 b
6144	6144
6145	6145
6146	6146	SB3997- 171 -LRB103 43686 LNS 77044 b SB3997 - 171 - LRB103 43686 LNS 77044 b
6147	6147	SB3997 - 171 - LRB103 43686 LNS 77044 b
6148	6148	1 (6) the electric generating facility at the
6149	6149	2 site is not owned by (i) an electric cooperative
6150	6150	3 as defined in Section 3-119 of the Public
6151	6151	4 Utilities Act, or (ii) an entity described in
6152	6152	5 subsection (b)(1) of Section 3-105 of the Public
6153	6153	6 Utilities Act, or an association or consortium of
6154	6154	7 or an entity owned by entities described in items
6155	6155	8 (i) or (ii);
6156	6156	9 (7) the proposed energy storage facility at
6157	6157	10 the site will have energy storage capacity of at
6158	6158	11 least 37 megawatts;
6159	6159	12 (8) the owner commits to place the energy
6160	6160	13 storage facility into commercial operation on
6161	6161	14 either June 1, 2023, June 1, 2024, or June 1, 2025,
6162	6162	15 with such date subject to adjustment as needed due
6163	6163	16 to any delays in completing the grant contracting
6164	6164	17 process, in finalizing interconnection agreements
6165	6165	18 and in installing interconnection facilities, and
6166	6166	19 in obtaining necessary governmental permits and
6167	6167	20 approvals;
6168	6168	21 (9) the owner agrees that the new energy
6169	6169	22 storage facility will be constructed or installed
6170	6170	23 by a qualified entity or entities consistent with
6171	6171	24 the requirements of subsection (g) of Section
6172	6172	25 16-128A of the Public Utilities Act and any rules
6173	6173	26 adopted under that Section;
6174	6174
6175	6175
6176	6176
6177	6177
6178	6178
6179	6179	SB3997 - 171 - LRB103 43686 LNS 77044 b
6180	6180
6181	6181
6182	6182	SB3997- 172 -LRB103 43686 LNS 77044 b SB3997 - 172 - LRB103 43686 LNS 77044 b
6183	6183	SB3997 - 172 - LRB103 43686 LNS 77044 b
6184	6184	1 (10) the owner agrees that personnel operating
6185	6185	2 the energy storage facility will have the
6186	6186	3 requisite skills, knowledge, training, experience,
6187	6187	4 and competence, which may be demonstrated by
6188	6188	5 completion or current participation and ultimate
6189	6189	6 completion by employees of an accredited or
6190	6190	7 otherwise recognized apprenticeship program for
6191	6191	8 the employee's particular craft, trade, or skill,
6192	6192	9 including through training and education courses
6193	6193	10 and opportunities offered by the owner to
6194	6194	11 employees of the coal-fueled electric generating
6195	6195	12 facility or by previous employment experience
6196	6196	13 performing the employee's particular work skill or
6197	6197	14 function;
6198	6198	15 (11) the owner commits that not less than the
6199	6199	16 prevailing wage, as determined pursuant to the
6200	6200	17 Prevailing Wage Act, will be paid to the owner's
6201	6201	18 employees engaged in construction activities
6202	6202	19 associated with the new energy storage facility
6203	6203	20 and to the employees of the owner's contractors
6204	6204	21 engaged in construction activities associated with
6205	6205	22 the new energy storage facility, and that, on or
6206	6206	23 before the commercial operation date of the new
6207	6207	24 energy storage facility, the owner shall file a
6208	6208	25 report with the Department certifying that the
6209	6209	26 requirements of this subparagraph (11) have been
6210	6210
6211	6211
6212	6212
6213	6213
6214	6214
6215	6215	SB3997 - 172 - LRB103 43686 LNS 77044 b
6216	6216
6217	6217
6218	6218	SB3997- 173 -LRB103 43686 LNS 77044 b SB3997 - 173 - LRB103 43686 LNS 77044 b
6219	6219	SB3997 - 173 - LRB103 43686 LNS 77044 b
6220	6220	1 met; and
6221	6221	2 (12) the owner commits that if selected to
6222	6222	3 receive a grant, it will negotiate a project labor
6223	6223	4 agreement for the construction of the new energy
6224	6224	5 storage facility that includes provisions
6225	6225	6 requiring the parties to the agreement to work
6226	6226	7 together to establish diversity threshold
6227	6227	8 requirements and to ensure best efforts to meet
6228	6228	9 diversity targets, improve diversity at the
6229	6229	10 applicable job site, create diverse apprenticeship
6230	6230	11 opportunities, and create opportunities to employ
6231	6231	12 former coal-fired power plant workers.
6232	6232	13 The Department shall accept applications for this
6233	6233	14 grant program until March 31, 2022 and shall announce
6234	6234	15 the award of grants no later than June 1, 2022. The
6235	6235	16 Department shall make the grant payments to a
6236	6236	17 recipient in equal annual amounts for 10 years
6237	6237	18 following the date the energy storage facility is
6238	6238	19 placed into commercial operation. The annual grant
6239	6239	20 payments to a qualifying energy storage facility shall
6240	6240	21 be $110,000 per megawatt of energy storage capacity,
6241	6241	22 with total annual grant payments pursuant to this
6242	6242	23 subparagraph (C) for qualifying energy storage
6243	6243	24 facilities not to exceed $28,050,000 in any year.
6244	6244	25 (D) Grants of funding for energy storage
6245	6245	26 facilities pursuant to subparagraph (C) of this
6246	6246
6247	6247
6248	6248
6249	6249
6250	6250
6251	6251	SB3997 - 173 - LRB103 43686 LNS 77044 b
6252	6252
6253	6253
6254	6254	SB3997- 174 -LRB103 43686 LNS 77044 b SB3997 - 174 - LRB103 43686 LNS 77044 b
6255	6255	SB3997 - 174 - LRB103 43686 LNS 77044 b
6256	6256	1 paragraph (10), from the Coal to Solar and Energy
6257	6257	2 Storage Initiative Fund, shall be memorialized in
6258	6258	3 grant contracts between the Department and the
6259	6259	4 recipient. The grant contracts shall specify the date
6260	6260	5 or dates in each year on which the annual grant
6261	6261	6 payments shall be paid.
6262	6262	7 (E) All disbursements from the Coal to Solar and
6263	6263	8 Energy Storage Initiative Fund shall be made only upon
6264	6264	9 warrants of the Comptroller drawn upon the Treasurer
6265	6265	10 as custodian of the Fund upon vouchers signed by the
6266	6266	11 Director of the Department or by the person or persons
6267	6267	12 designated by the Director of the Department for that
6268	6268	13 purpose. The Comptroller is authorized to draw the
6269	6269	14 warrants upon vouchers so signed. The Treasurer shall
6270	6270	15 accept all written warrants so signed and shall be
6271	6271	16 released from liability for all payments made on those
6272	6272	17 warrants.
6273	6273	18 (11) Diversity, equity, and inclusion plans.
6274	6274	19 (A) Each applicant selected in a procurement event
6275	6275	20 to contract to supply renewable energy credits in
6276	6276	21 accordance with this subsection (c-5) and each owner
6277	6277	22 selected by the Department to receive a grant or
6278	6278	23 grants to support the construction and operation of a
6279	6279	24 new energy storage facility or facilities in
6280	6280	25 accordance with this subsection (c-5) shall, within 60
6281	6281	26 days following the Commission's approval of the
6282	6282
6283	6283
6284	6284
6285	6285
6286	6286
6287	6287	SB3997 - 174 - LRB103 43686 LNS 77044 b
6288	6288
6289	6289
6290	6290	SB3997- 175 -LRB103 43686 LNS 77044 b SB3997 - 175 - LRB103 43686 LNS 77044 b
6291	6291	SB3997 - 175 - LRB103 43686 LNS 77044 b
6292	6292	1 applicant to contract to supply renewable energy
6293	6293	2 credits or within 60 days following execution of a
6294	6294	3 grant contract with the Department, as applicable,
6295	6295	4 submit to the Commission a diversity, equity, and
6296	6296	5 inclusion plan setting forth the applicant's or
6297	6297	6 owner's numeric goals for the diversity composition of
6298	6298	7 its supplier entities for the new renewable energy
6299	6299	8 facility or new energy storage facility, as
6300	6300	9 applicable, which shall be referred to for purposes of
6301	6301	10 this paragraph (11) as the project, and the
6302	6302	11 applicant's or owner's action plan and schedule for
6303	6303	12 achieving those goals.
6304	6304	13 (B) For purposes of this paragraph (11), diversity
6305	6305	14 composition shall be based on the percentage, which
6306	6306	15 shall be a minimum of 25%, of eligible expenditures
6307	6307	16 for contract awards for materials and services (which
6308	6308	17 shall be defined in the plan) to business enterprises
6309	6309	18 owned by minority persons, women, or persons with
6310	6310	19 disabilities as defined in Section 2 of the Business
6311	6311	20 Enterprise for Minorities, Women, and Persons with
6312	6312	21 Disabilities Act, to LGBTQ business enterprises, to
6313	6313	22 veteran-owned business enterprises, and to business
6314	6314	23 enterprises located in environmental justice
6315	6315	24 communities. The diversity composition goals of the
6316	6316	25 plan may include eligible expenditures in areas for
6317	6317	26 vendor or supplier opportunities in addition to
6318	6318
6319	6319
6320	6320
6321	6321
6322	6322
6323	6323	SB3997 - 175 - LRB103 43686 LNS 77044 b
6324	6324
6325	6325
6326	6326	SB3997- 176 -LRB103 43686 LNS 77044 b SB3997 - 176 - LRB103 43686 LNS 77044 b
6327	6327	SB3997 - 176 - LRB103 43686 LNS 77044 b
6328	6328	1 development and construction of the project, and may
6329	6329	2 exclude from eligible expenditures materials and
6330	6330	3 services with limited market availability, limited
6331	6331	4 production and availability from suppliers in the
6332	6332	5 United States, such as solar panels and storage
6333	6333	6 batteries, and material and services that are subject
6334	6334	7 to critical energy infrastructure or cybersecurity
6335	6335	8 requirements or restrictions. The plan may provide
6336	6336	9 that the diversity composition goals may be met
6337	6337	10 through Tier 1 Direct or Tier 2 subcontracting
6338	6338	11 expenditures or a combination thereof for the project.
6339	6339	12 (C) The plan shall provide for, but not be limited
6340	6340	13 to: (i) internal initiatives, including multi-tier
6341	6341	14 initiatives, by the applicant or owner, or by its
6342	6342	15 engineering, procurement and construction contractor
6343	6343	16 if one is used for the project, which for purposes of
6344	6344	17 this paragraph (11) shall be referred to as the EPC
6345	6345	18 contractor, to enable diverse businesses to be
6346	6346	19 considered fairly for selection to provide materials
6347	6347	20 and services; (ii) requirements for the applicant or
6348	6348	21 owner or its EPC contractor to proactively solicit and
6349	6349	22 utilize diverse businesses to provide materials and
6350	6350	23 services; and (iii) requirements for the applicant or
6351	6351	24 owner or its EPC contractor to hire a diverse
6352	6352	25 workforce for the project. The plan shall include a
6353	6353	26 description of the applicant's or owner's diversity
6354	6354
6355	6355
6356	6356
6357	6357
6358	6358
6359	6359	SB3997 - 176 - LRB103 43686 LNS 77044 b
6360	6360
6361	6361
6362	6362	SB3997- 177 -LRB103 43686 LNS 77044 b SB3997 - 177 - LRB103 43686 LNS 77044 b
6363	6363	SB3997 - 177 - LRB103 43686 LNS 77044 b
6364	6364	1 recruiting efforts both for the project and for other
6365	6365	2 areas of the applicant's or owner's business
6366	6366	3 operations. The plan shall provide for the imposition
6367	6367	4 of financial penalties on the applicant's or owner's
6368	6368	5 EPC contractor for failure to exercise best efforts to
6369	6369	6 comply with and execute the EPC contractor's diversity
6370	6370	7 obligations under the plan. The plan may provide for
6371	6371	8 the applicant or owner to set aside a portion of the
6372	6372	9 work on the project to serve as an incubation program
6373	6373	10 for qualified businesses, as specified in the plan,
6374	6374	11 owned by minority persons, women, persons with
6375	6375	12 disabilities, LGBTQ persons, and veterans, and
6376	6376	13 businesses located in environmental justice
6377	6377	14 communities, seeking to enter the renewable energy
6378	6378	15 industry.
6379	6379	16 (D) The applicant or owner may submit a revised or
6380	6380	17 updated plan to the Commission from time to time as
6381	6381	18 circumstances warrant. The applicant or owner shall
6382	6382	19 file annual reports with the Commission detailing the
6383	6383	20 applicant's or owner's progress in implementing its
6384	6384	21 plan and achieving its goals and any modifications the
6385	6385	22 applicant or owner has made to its plan to better
6386	6386	23 achieve its diversity, equity and inclusion goals. The
6387	6387	24 applicant or owner shall file a final report on the
6388	6388	25 fifth June 1 following the commercial operation date
6389	6389	26 of the new renewable energy resource or new energy
6390	6390
6391	6391
6392	6392
6393	6393
6394	6394
6395	6395	SB3997 - 177 - LRB103 43686 LNS 77044 b
6396	6396
6397	6397
6398	6398	SB3997- 178 -LRB103 43686 LNS 77044 b SB3997 - 178 - LRB103 43686 LNS 77044 b
6399	6399	SB3997 - 178 - LRB103 43686 LNS 77044 b
6400	6400	1 storage facility, but the applicant or owner shall
6401	6401	2 thereafter continue to be subject to applicable
6402	6402	3 reporting requirements of Section 5-117 of the Public
6403	6403	4 Utilities Act.
6404	6404	5 (c-10) Equity accountability system. It is the purpose of
6405	6405	6 this subsection (c-10) to create an equity accountability
6406	6406	7 system, which includes the minimum equity standards for all
6407	6407	8 renewable energy procurements, the equity category of the
6408	6408	9 Adjustable Block Program, and the equity prioritization for
6409	6409	10 noncompetitive procurements, that is successful in advancing
6410	6410	11 priority access to the clean energy economy for businesses and
6411	6411	12 workers from communities that have been excluded from economic
6412	6412	13 opportunities in the energy sector, have been subject to
6413	6413	14 disproportionate levels of pollution, and have
6414	6414	15 disproportionately experienced negative public health
6415	6415	16 outcomes. Further, it is the purpose of this subsection to
6416	6416	17 ensure that this equity accountability system is successful in
6417	6417	18 advancing equity across Illinois by providing access to the
6418	6418	19 clean energy economy for businesses and workers from
6419	6419	20 communities that have been historically excluded from economic
6420	6420	21 opportunities in the energy sector, have been subject to
6421	6421	22 disproportionate levels of pollution, and have
6422	6422	23 disproportionately experienced negative public health
6423	6423	24 outcomes.
6424	6424	25 (1) Minimum equity standards. The Agency shall create
6425	6425	26 programs with the purpose of increasing access to and
6426	6426
6427	6427
6428	6428
6429	6429
6430	6430
6431	6431	SB3997 - 178 - LRB103 43686 LNS 77044 b
6432	6432
6433	6433
6434	6434	SB3997- 179 -LRB103 43686 LNS 77044 b SB3997 - 179 - LRB103 43686 LNS 77044 b
6435	6435	SB3997 - 179 - LRB103 43686 LNS 77044 b
6436	6436	1 development of equity eligible contractors, who are prime
6437	6437	2 contractors and subcontractors, across all of the programs
6438	6438	3 it manages. All applications for renewable energy credit
6439	6439	4 procurements shall comply with specific minimum equity
6440	6440	5 commitments. Starting in the delivery year immediately
6441	6441	6 following the next long-term renewable resources
6442	6442	7 procurement plan, at least 10% of the project workforce
6443	6443	8 for each entity participating in a procurement program
6444	6444	9 outlined in this subsection (c-10) must be done by equity
6445	6445	10 eligible persons or equity eligible contractors. The
6446	6446	11 Agency shall increase the minimum percentage each delivery
6447	6447	12 year thereafter by increments that ensure a statewide
6448	6448	13 average of 30% of the project workforce for each entity
6449	6449	14 participating in a procurement program is done by equity
6450	6450	15 eligible persons or equity eligible contractors by 2030.
6451	6451	16 The Agency shall propose a schedule of percentage
6452	6452	17 increases to the minimum equity standards in its draft
6453	6453	18 revised renewable energy resources procurement plan
6454	6454	19 submitted to the Commission for approval pursuant to
6455	6455	20 paragraph (5) of subsection (b) of Section 16-111.5 of the
6456	6456	21 Public Utilities Act. In determining these annual
6457	6457	22 increases, the Agency shall have the discretion to
6458	6458	23 establish different minimum equity standards for different
6459	6459	24 types of procurements and different regions of the State
6460	6460	25 if the Agency finds that doing so will further the
6461	6461	26 purposes of this subsection (c-10). The proposed schedule
6462	6462
6463	6463
6464	6464
6465	6465
6466	6466
6467	6467	SB3997 - 179 - LRB103 43686 LNS 77044 b
6468	6468
6469	6469
6470	6470	SB3997- 180 -LRB103 43686 LNS 77044 b SB3997 - 180 - LRB103 43686 LNS 77044 b
6471	6471	SB3997 - 180 - LRB103 43686 LNS 77044 b
6472	6472	1 of annual increases shall be revisited and updated on an
6473	6473	2 annual basis. Revisions shall be developed with
6474	6474	3 stakeholder input, including from equity eligible persons,
6475	6475	4 equity eligible contractors, clean energy industry
6476	6476	5 representatives, and community-based organizations that
6477	6477	6 work with such persons and contractors.
6478	6478	7 (A) At the start of each delivery year, the Agency
6479	6479	8 shall require a compliance plan from each entity
6480	6480	9 participating in a procurement program of subsection
6481	6481	10 (c) of this Section that demonstrates how they will
6482	6482	11 achieve compliance with the minimum equity standard
6483	6483	12 percentage for work completed in that delivery year.
6484	6484	13 If an entity applies for its approved vendor or
6485	6485	14 designee status between delivery years, the Agency
6486	6486	15 shall require a compliance plan at the time of
6487	6487	16 application.
6488	6488	17 (B) Halfway through each delivery year, the Agency
6489	6489	18 shall require each entity participating in a
6490	6490	19 procurement program to confirm that it will achieve
6491	6491	20 compliance in that delivery year, when applicable. The
6492	6492	21 Agency may offer corrective action plans to entities
6493	6493	22 that are not on track to achieve compliance.
6494	6494	23 (C) At the end of each delivery year, each entity
6495	6495	24 participating and completing work in that delivery
6496	6496	25 year in a procurement program of subsection (c) shall
6497	6497	26 submit a report to the Agency that demonstrates how it
6498	6498
6499	6499
6500	6500
6501	6501
6502	6502
6503	6503	SB3997 - 180 - LRB103 43686 LNS 77044 b
6504	6504
6505	6505
6506	6506	SB3997- 181 -LRB103 43686 LNS 77044 b SB3997 - 181 - LRB103 43686 LNS 77044 b
6507	6507	SB3997 - 181 - LRB103 43686 LNS 77044 b
6508	6508	1 achieved compliance with the minimum equity standards
6509	6509	2 percentage for that delivery year.
6510	6510	3 (D) The Agency shall prohibit participation in
6511	6511	4 procurement programs by an approved vendor or
6512	6512	5 designee, as applicable, or entities with which an
6513	6513	6 approved vendor or designee, as applicable, shares a
6514	6514	7 common parent company if an approved vendor or
6515	6515	8 designee, as applicable, failed to meet the minimum
6516	6516	9 equity standards for the prior delivery year. Waivers
6517	6517	10 approved for lack of equity eligible persons or equity
6518	6518	11 eligible contractors in a geographic area of a project
6519	6519	12 shall not count against the approved vendor or
6520	6520	13 designee. The Agency shall offer a corrective action
6521	6521	14 plan for any such entities to assist them in obtaining
6522	6522	15 compliance and shall allow continued access to
6523	6523	16 procurement programs upon an approved vendor or
6524	6524	17 designee demonstrating compliance.
6525	6525	18 (E) The Agency shall pursue efficiencies achieved
6526	6526	19 by combining with other approved vendor or designee
6527	6527	20 reporting.
6528	6528	21 (2) Equity accountability system within the Adjustable
6529	6529	22 Block program. The equity category described in item (vi)
6530	6530	23 of subparagraph (K) of subsection (c) is only available to
6531	6531	24 applicants that are equity eligible contractors.
6532	6532	25 (3) Equity accountability system within competitive
6533	6533	26 procurements. Through its long-term renewable resources
6534	6534
6535	6535
6536	6536
6537	6537
6538	6538
6539	6539	SB3997 - 181 - LRB103 43686 LNS 77044 b
6540	6540
6541	6541
6542	6542	SB3997- 182 -LRB103 43686 LNS 77044 b SB3997 - 182 - LRB103 43686 LNS 77044 b
6543	6543	SB3997 - 182 - LRB103 43686 LNS 77044 b
6544	6544	1 procurement plan, the Agency shall develop requirements
6545	6545	2 for ensuring that competitive procurement processes,
6546	6546	3 including utility-scale solar, utility-scale wind, and
6547	6547	4 brownfield site photovoltaic projects, advance the equity
6548	6548	5 goals of this subsection (c-10). Subject to Commission
6549	6549	6 approval, the Agency shall develop bid application
6550	6550	7 requirements and a bid evaluation methodology for ensuring
6551	6551	8 that utilization of equity eligible contractors, whether
6552	6552	9 as bidders or as participants on project development, is
6553	6553	10 optimized, including requiring that winning or successful
6554	6554	11 applicants for utility-scale projects are or will partner
6555	6555	12 with equity eligible contractors and giving preference to
6556	6556	13 bids through which a higher portion of contract value
6557	6557	14 flows to equity eligible contractors. To the extent
6558	6558	15 practicable, entities participating in competitive
6559	6559	16 procurements shall also be required to meet all the equity
6560	6560	17 accountability requirements for approved vendors and their
6561	6561	18 designees under this subsection (c-10). In developing
6562	6562	19 these requirements, the Agency shall also consider whether
6563	6563	20 equity goals can be further advanced through additional
6564	6564	21 measures.
6565	6565	22 (4) In the first revision to the long-term renewable
6566	6566	23 energy resources procurement plan and each revision
6567	6567	24 thereafter, the Agency shall include the following:
6568	6568	25 (A) The current status and number of equity
6569	6569	26 eligible contractors listed in the Energy Workforce
6570	6570
6571	6571
6572	6572
6573	6573
6574	6574
6575	6575	SB3997 - 182 - LRB103 43686 LNS 77044 b
6576	6576
6577	6577
6578	6578	SB3997- 183 -LRB103 43686 LNS 77044 b SB3997 - 183 - LRB103 43686 LNS 77044 b
6579	6579	SB3997 - 183 - LRB103 43686 LNS 77044 b
6580	6580	1 Equity Database designed in subsection (c-25),
6581	6581	2 including the number of equity eligible contractors
6582	6582	3 with current certifications as issued by the Agency.
6583	6583	4 (B) A mechanism for measuring, tracking, and
6584	6584	5 reporting project workforce at the approved vendor or
6585	6585	6 designee level, as applicable, which shall include a
6586	6586	7 measurement methodology and records to be made
6587	6587	8 available for audit by the Agency or the Program
6588	6588	9 Administrator.
6589	6589	10 (C) A program for approved vendors, designees,
6590	6590	11 eligible persons, and equity eligible contractors to
6591	6591	12 receive trainings, guidance, and other support from
6592	6592	13 the Agency or its designee regarding the equity
6593	6593	14 category outlined in item (vi) of subparagraph (K) of
6594	6594	15 paragraph (1) of subsection (c) and in meeting the
6595	6595	16 minimum equity standards of this subsection (c-10).
6596	6596	17 (D) A process for certifying equity eligible
6597	6597	18 contractors and equity eligible persons. The
6598	6598	19 certification process shall coordinate with the Energy
6599	6599	20 Workforce Equity Database set forth in subsection
6600	6600	21 (c-25).
6601	6601	22 (E) An application for waiver of the minimum
6602	6602	23 equity standards of this subsection, which the Agency
6603	6603	24 shall have the discretion to grant in rare
6604	6604	25 circumstances. The Agency may grant such a waiver
6605	6605	26 where the applicant provides evidence of significant
6606	6606
6607	6607
6608	6608
6609	6609
6610	6610
6611	6611	SB3997 - 183 - LRB103 43686 LNS 77044 b
6612	6612
6613	6613
6614	6614	SB3997- 184 -LRB103 43686 LNS 77044 b SB3997 - 184 - LRB103 43686 LNS 77044 b
6615	6615	SB3997 - 184 - LRB103 43686 LNS 77044 b
6616	6616	1 efforts toward meeting the minimum equity commitment,
6617	6617	2 including: use of the Energy Workforce Equity
6618	6618	3 Database; efforts to hire or contract with entities
6619	6619	4 that hire eligible persons; and efforts to establish
6620	6620	5 contracting relationships with eligible contractors.
6621	6621	6 The Agency shall support applicants in understanding
6622	6622	7 the Energy Workforce Equity Database and other
6623	6623	8 resources for pursuing compliance of the minimum
6624	6624	9 equity standards. Waivers shall be project-specific,
6625	6625	10 unless the Agency deems it necessary to grant a waiver
6626	6626	11 across a portfolio of projects, and in effect for no
6627	6627	12 longer than one year. Any waiver extension or
6628	6628	13 subsequent waiver request from an applicant shall be
6629	6629	14 subject to the requirements of this Section and shall
6630	6630	15 specify efforts made to reach compliance. When
6631	6631	16 considering whether to grant a waiver, and to what
6632	6632	17 extent, the Agency shall consider the degree to which
6633	6633	18 similarly situated applicants have been able to meet
6634	6634	19 these minimum equity commitments. For repeated waiver
6635	6635	20 requests for specific lack of eligible persons or
6636	6636	21 eligible contractors available, the Agency shall make
6637	6637	22 recommendations to target recruitment to add such
6638	6638	23 eligible persons or eligible contractors to the
6639	6639	24 database.
6640	6640	25 (5) The Agency shall collect information about work on
6641	6641	26 projects or portfolios of projects subject to these
6642	6642
6643	6643
6644	6644
6645	6645
6646	6646
6647	6647	SB3997 - 184 - LRB103 43686 LNS 77044 b
6648	6648
6649	6649
6650	6650	SB3997- 185 -LRB103 43686 LNS 77044 b SB3997 - 185 - LRB103 43686 LNS 77044 b
6651	6651	SB3997 - 185 - LRB103 43686 LNS 77044 b
6652	6652	1 minimum equity standards to ensure compliance with this
6653	6653	2 subsection (c-10). Reporting in furtherance of this
6654	6654	3 requirement may be combined with other annual reporting
6655	6655	4 requirements. Such reporting shall include proof of
6656	6656	5 certification of each equity eligible contractor or equity
6657	6657	6 eligible person during the applicable time period.
6658	6658	7 (6) The Agency shall keep confidential all information
6659	6659	8 and communication that provides private or personal
6660	6660	9 information.
6661	6661	10 (7) Modifications to the equity accountability system.
6662	6662	11 As part of the update of the long-term renewable resources
6663	6663	12 procurement plan to be initiated in 2023, or sooner if the
6664	6664	13 Agency deems necessary, the Agency shall determine the
6665	6665	14 extent to which the equity accountability system described
6666	6666	15 in this subsection (c-10) has advanced the goals of this
6667	6667	16 amendatory Act of the 102nd General Assembly, including
6668	6668	17 through the inclusion of equity eligible persons and
6669	6669	18 equity eligible contractors in renewable energy credit
6670	6670	19 projects. If the Agency finds that the equity
6671	6671	20 accountability system has failed to meet those goals to
6672	6672	21 its fullest potential, the Agency may revise the following
6673	6673	22 criteria for future Agency procurements: (A) the
6674	6674	23 percentage of project workforce, or other appropriate
6675	6675	24 workforce measure, certified as equity eligible persons or
6676	6676	25 equity eligible contractors; (B) definitions for equity
6677	6677	26 investment eligible persons and equity investment eligible
6678	6678
6679	6679
6680	6680
6681	6681
6682	6682
6683	6683	SB3997 - 185 - LRB103 43686 LNS 77044 b
6684	6684
6685	6685
6686	6686	SB3997- 186 -LRB103 43686 LNS 77044 b SB3997 - 186 - LRB103 43686 LNS 77044 b
6687	6687	SB3997 - 186 - LRB103 43686 LNS 77044 b
6688	6688	1 community; and (C) such other modifications necessary to
6689	6689	2 advance the goals of this amendatory Act of the 102nd
6690	6690	3 General Assembly effectively. Such revised criteria may
6691	6691	4 also establish distinct equity accountability systems for
6692	6692	5 different types of procurements or different regions of
6693	6693	6 the State if the Agency finds that doing so will further
6694	6694	7 the purposes of such programs. Revisions shall be
6695	6695	8 developed with stakeholder input, including from equity
6696	6696	9 eligible persons, equity eligible contractors, and
6697	6697	10 community-based organizations that work with such persons
6698	6698	11 and contractors.
6699	6699	12 (c-15) Racial discrimination elimination powers and
6700	6700	13 process.
6701	6701	14 (1) Purpose. It is the purpose of this subsection to
6702	6702	15 empower the Agency and other State actors to remedy racial
6703	6703	16 discrimination in Illinois' clean energy economy as
6704	6704	17 effectively and expediently as possible, including through
6705	6705	18 the use of race-conscious remedies, such as race-conscious
6706	6706	19 contracting and hiring goals, as consistent with State and
6707	6707	20 federal law.
6708	6708	21 (2) Racial disparity and discrimination review
6709	6709	22 process.
6710	6710	23 (A) Within one year after awarding contracts using
6711	6711	24 the equity actions processes established in this
6712	6712	25 Section, the Agency shall publish a report evaluating
6713	6713	26 the effectiveness of the equity actions point criteria
6714	6714
6715	6715
6716	6716
6717	6717
6718	6718
6719	6719	SB3997 - 186 - LRB103 43686 LNS 77044 b
6720	6720
6721	6721
6722	6722	SB3997- 187 -LRB103 43686 LNS 77044 b SB3997 - 187 - LRB103 43686 LNS 77044 b
6723	6723	SB3997 - 187 - LRB103 43686 LNS 77044 b
6724	6724	1 of this Section in increasing participation of equity
6725	6725	2 eligible persons and equity eligible contractors. The
6726	6726	3 report shall disaggregate participating workers and
6727	6727	4 contractors by race and ethnicity. The report shall be
6728	6728	5 forwarded to the Governor, the General Assembly, and
6729	6729	6 the Illinois Commerce Commission and be made available
6730	6730	7 to the public.
6731	6731	8 (B) As soon as is practicable thereafter, the
6732	6732	9 Agency, in consultation with the Department of
6733	6733	10 Commerce and Economic Opportunity, Department of
6734	6734	11 Labor, and other agencies that may be relevant, shall
6735	6735	12 commission and publish a disparity and availability
6736	6736	13 study that measures the presence and impact of
6737	6737	14 discrimination on minority businesses and workers in
6738	6738	15 Illinois' clean energy economy. The Agency may hire
6739	6739	16 consultants and experts to conduct the disparity and
6740	6740	17 availability study, with the retention of those
6741	6741	18 consultants and experts exempt from the requirements
6742	6742	19 of Section 20-10 of the Illinois Procurement Code. The
6743	6743	20 Illinois Power Agency shall forward a copy of its
6744	6744	21 findings and recommendations to the Governor, the
6745	6745	22 General Assembly, and the Illinois Commerce
6746	6746	23 Commission. If the disparity and availability study
6747	6747	24 establishes a strong basis in evidence that there is
6748	6748	25 discrimination in Illinois' clean energy economy, the
6749	6749	26 Agency, Department of Commerce and Economic
6750	6750
6751	6751
6752	6752
6753	6753
6754	6754
6755	6755	SB3997 - 187 - LRB103 43686 LNS 77044 b
6756	6756
6757	6757
6758	6758	SB3997- 188 -LRB103 43686 LNS 77044 b SB3997 - 188 - LRB103 43686 LNS 77044 b
6759	6759	SB3997 - 188 - LRB103 43686 LNS 77044 b
6760	6760	1 Opportunity, Department of Labor, Department of
6761	6761	2 Corrections, and other appropriate agencies shall take
6762	6762	3 appropriate remedial actions, including race-conscious
6763	6763	4 remedial actions as consistent with State and federal
6764	6764	5 law, to effectively remedy this discrimination. Such
6765	6765	6 remedies may include modification of the equity
6766	6766	7 accountability system as described in subsection
6767	6767	8 (c-10).
6768	6768	9 (c-20) Program data collection.
6769	6769	10 (1) Purpose. Data collection, data analysis, and
6770	6770	11 reporting are critical to ensure that the benefits of the
6771	6771	12 clean energy economy provided to Illinois residents and
6772	6772	13 businesses are equitably distributed across the State. The
6773	6773	14 Agency shall collect data from program applicants in order
6774	6774	15 to track and improve equitable distribution of benefits
6775	6775	16 across Illinois communities for all procurements the
6776	6776	17 Agency conducts. The Agency shall use this data to, among
6777	6777	18 other things, measure any potential impact of racial
6778	6778	19 discrimination on the distribution of benefits and provide
6779	6779	20 information necessary to correct any discrimination
6780	6780	21 through methods consistent with State and federal law.
6781	6781	22 (2) Agency collection of program data. The Agency
6782	6782	23 shall collect demographic and geographic data for each
6783	6783	24 entity awarded contracts under any Agency-administered
6784	6784	25 program.
6785	6785	26 (3) Required information to be collected. The Agency
6786	6786
6787	6787
6788	6788
6789	6789
6790	6790
6791	6791	SB3997 - 188 - LRB103 43686 LNS 77044 b
6792	6792
6793	6793
6794	6794	SB3997- 189 -LRB103 43686 LNS 77044 b SB3997 - 189 - LRB103 43686 LNS 77044 b
6795	6795	SB3997 - 189 - LRB103 43686 LNS 77044 b
6796	6796	1 shall collect the following information from applicants
6797	6797	2 and program participants where applicable:
6798	6798	3 (A) demographic information, including racial or
6799	6799	4 ethnic identity for real persons employed, contracted,
6800	6800	5 or subcontracted through the program and owners of
6801	6801	6 businesses or entities that apply to receive renewable
6802	6802	7 energy credits from the Agency;
6803	6803	8 (B) geographic location of the residency of real
6804	6804	9 persons employed, contracted, or subcontracted through
6805	6805	10 the program and geographic location of the
6806	6806	11 headquarters of the business or entity that applies to
6807	6807	12 receive renewable energy credits from the Agency; and
6808	6808	13 (C) any other information the Agency determines is
6809	6809	14 necessary for the purpose of achieving the purpose of
6810	6810	15 this subsection.
6811	6811	16 (4) Publication of collected information. The Agency
6812	6812	17 shall publish, at least annually, information on the
6813	6813	18 demographics of program participants on an aggregate
6814	6814	19 basis.
6815	6815	20 (5) Nothing in this subsection shall be interpreted to
6816	6816	21 limit the authority of the Agency, or other agency or
6817	6817	22 department of the State, to require or collect demographic
6818	6818	23 information from applicants of other State programs.
6819	6819	24 (c-25) Energy Workforce Equity Database.
6820	6820	25 (1) The Agency, in consultation with the Department of
6821	6821	26 Commerce and Economic Opportunity, shall create an Energy
6822	6822
6823	6823
6824	6824
6825	6825
6826	6826
6827	6827	SB3997 - 189 - LRB103 43686 LNS 77044 b
6828	6828
6829	6829
6830	6830	SB3997- 190 -LRB103 43686 LNS 77044 b SB3997 - 190 - LRB103 43686 LNS 77044 b
6831	6831	SB3997 - 190 - LRB103 43686 LNS 77044 b
6832	6832	1 Workforce Equity Database, and may contract with a third
6833	6833	2 party to do so ("database program administrator"). If the
6834	6834	3 Department decides to contract with a third party, that
6835	6835	4 third party shall be exempt from the requirements of
6836	6836	5 Section 20-10 of the Illinois Procurement Code. The Energy
6837	6837	6 Workforce Equity Database shall be a searchable database
6838	6838	7 of suppliers, vendors, and subcontractors for clean energy
6839	6839	8 industries that is:
6840	6840	9 (A) publicly accessible;
6841	6841	10 (B) easy for people to find and use;
6842	6842	11 (C) organized by company specialty or field;
6843	6843	12 (D) region-specific; and
6844	6844	13 (E) populated with information including, but not
6845	6845	14 limited to, contacts for suppliers, vendors, or
6846	6846	15 subcontractors who are minority and women-owned
6847	6847	16 business enterprise certified or who participate or
6848	6848	17 have participated in any of the programs described in
6849	6849	18 this Act.
6850	6850	19 (2) The Agency shall create an easily accessible,
6851	6851	20 public facing online tool using the database information
6852	6852	21 that includes, at a minimum, the following:
6853	6853	22 (A) a map of environmental justice and equity
6854	6854	23 investment eligible communities;
6855	6855	24 (B) job postings and recruiting opportunities;
6856	6856	25 (C) a means by which recruiting clean energy
6857	6857	26 companies can find and interact with current or former
6858	6858
6859	6859
6860	6860
6861	6861
6862	6862
6863	6863	SB3997 - 190 - LRB103 43686 LNS 77044 b
6864	6864
6865	6865
6866	6866	SB3997- 191 -LRB103 43686 LNS 77044 b SB3997 - 191 - LRB103 43686 LNS 77044 b
6867	6867	SB3997 - 191 - LRB103 43686 LNS 77044 b
6868	6868	1 participants of clean energy workforce training
6869	6869	2 programs;
6870	6870	3 (D) information on workforce training service
6871	6871	4 providers and training opportunities available to
6872	6872	5 prospective workers;
6873	6873	6 (E) renewable energy company diversity reporting;
6874	6874	7 (F) a list of equity eligible contractors with
6875	6875	8 their contact information, types of work performed,
6876	6876	9 and locations worked in;
6877	6877	10 (G) reporting on outcomes of the programs
6878	6878	11 described in the workforce programs of the Energy
6879	6879	12 Transition Act, including information such as, but not
6880	6880	13 limited to, retention rate, graduation rate, and
6881	6881	14 placement rates of trainees; and
6882	6882	15 (H) information about the Jobs and Environmental
6883	6883	16 Justice Grant Program, the Clean Energy Jobs and
6884	6884	17 Justice Fund, and other sources of capital.
6885	6885	18 (3) The Agency shall ensure the database is regularly
6886	6886	19 updated to ensure information is current and shall
6887	6887	20 coordinate with the Department of Commerce and Economic
6888	6888	21 Opportunity to ensure that it includes information on
6889	6889	22 individuals and entities that are or have participated in
6890	6890	23 the Clean Jobs Workforce Network Program, Clean Energy
6891	6891	24 Contractor Incubator Program, Returning Residents Clean
6892	6892	25 Jobs Training Program, or Clean Energy Primes Contractor
6893	6893	26 Accelerator Program.
6894	6894
6895	6895
6896	6896
6897	6897
6898	6898
6899	6899	SB3997 - 191 - LRB103 43686 LNS 77044 b
6900	6900
6901	6901
6902	6902	SB3997- 192 -LRB103 43686 LNS 77044 b SB3997 - 192 - LRB103 43686 LNS 77044 b
6903	6903	SB3997 - 192 - LRB103 43686 LNS 77044 b
6904	6904	1 (c-30) Enforcement of minimum equity standards. All
6905	6905	2 entities seeking renewable energy credits must submit an
6906	6906	3 annual report to demonstrate compliance with each of the
6907	6907	4 equity commitments required under subsection (c-10). If the
6908	6908	5 Agency concludes the entity has not met or maintained its
6909	6909	6 minimum equity standards required under the applicable
6910	6910	7 subparagraphs under subsection (c-10), the Agency shall deny
6911	6911	8 the entity's ability to participate in procurement programs in
6912	6912	9 subsection (c), including by withholding approved vendor or
6913	6913	10 designee status. The Agency may require the entity to enter
6914	6914	11 into a corrective action plan. An entity that is not
6915	6915	12 recertified for failing to meet required equity actions in
6916	6916	13 subparagraph (c-10) may reapply once they have a corrective
6917	6917	14 action plan and achieve compliance with the minimum equity
6918	6918	15 standards.
6919	6919	16 (d) Clean coal portfolio standard.
6920	6920	17 (1) The procurement plans shall include electricity
6921	6921	18 generated using clean coal. Each utility shall enter into
6922	6922	19 one or more sourcing agreements with the initial clean
6923	6923	20 coal facility, as provided in paragraph (3) of this
6924	6924	21 subsection (d), covering electricity generated by the
6925	6925	22 initial clean coal facility representing at least 5% of
6926	6926	23 each utility's total supply to serve the load of eligible
6927	6927	24 retail customers in 2015 and each year thereafter, as
6928	6928	25 described in paragraph (3) of this subsection (d), subject
6929	6929	26 to the limits specified in paragraph (2) of this
6930	6930
6931	6931
6932	6932
6933	6933
6934	6934
6935	6935	SB3997 - 192 - LRB103 43686 LNS 77044 b
6936	6936
6937	6937
6938	6938	SB3997- 193 -LRB103 43686 LNS 77044 b SB3997 - 193 - LRB103 43686 LNS 77044 b
6939	6939	SB3997 - 193 - LRB103 43686 LNS 77044 b
6940	6940	1 subsection (d). It is the goal of the State that by January
6941	6941	2 1, 2025, 25% of the electricity used in the State shall be
6942	6942	3 generated by cost-effective clean coal facilities. For
6943	6943	4 purposes of this subsection (d), "cost-effective" means
6944	6944	5 that the expenditures pursuant to such sourcing agreements
6945	6945	6 do not cause the limit stated in paragraph (2) of this
6946	6946	7 subsection (d) to be exceeded and do not exceed cost-based
6947	6947	8 benchmarks, which shall be developed to assess all
6948	6948	9 expenditures pursuant to such sourcing agreements covering
6949	6949	10 electricity generated by clean coal facilities, other than
6950	6950	11 the initial clean coal facility, by the procurement
6951	6951	12 administrator, in consultation with the Commission staff,
6952	6952	13 Agency staff, and the procurement monitor and shall be
6953	6953	14 subject to Commission review and approval.
6954	6954	15 A utility party to a sourcing agreement shall
6955	6955	16 immediately retire any emission credits that it receives
6956	6956	17 in connection with the electricity covered by such
6957	6957	18 agreement.
6958	6958	19 Utilities shall maintain adequate records documenting
6959	6959	20 the purchases under the sourcing agreement to comply with
6960	6960	21 this subsection (d) and shall file an accounting with the
6961	6961	22 load forecast that must be filed with the Agency by July 15
6962	6962	23 of each year, in accordance with subsection (d) of Section
6963	6963	24 16-111.5 of the Public Utilities Act.
6964	6964	25 A utility shall be deemed to have complied with the
6965	6965	26 clean coal portfolio standard specified in this subsection
6966	6966
6967	6967
6968	6968
6969	6969
6970	6970
6971	6971	SB3997 - 193 - LRB103 43686 LNS 77044 b
6972	6972
6973	6973
6974	6974	SB3997- 194 -LRB103 43686 LNS 77044 b SB3997 - 194 - LRB103 43686 LNS 77044 b
6975	6975	SB3997 - 194 - LRB103 43686 LNS 77044 b
6976	6976	1 (d) if the utility enters into a sourcing agreement as
6977	6977	2 required by this subsection (d).
6978	6978	3 (2) For purposes of this subsection (d), the required
6979	6979	4 execution of sourcing agreements with the initial clean
6980	6980	5 coal facility for a particular year shall be measured as a
6981	6981	6 percentage of the actual amount of electricity
6982	6982	7 (megawatt-hours) supplied by the electric utility to
6983	6983	8 eligible retail customers in the planning year ending
6984	6984	9 immediately prior to the agreement's execution. For
6985	6985	10 purposes of this subsection (d), the amount paid per
6986	6986	11 kilowatthour means the total amount paid for electric
6987	6987	12 service expressed on a per kilowatthour basis. For
6988	6988	13 purposes of this subsection (d), the total amount paid for
6989	6989	14 electric service includes without limitation amounts paid
6990	6990	15 for supply, transmission, distribution, surcharges and
6991	6991	16 add-on taxes.
6992	6992	17 Notwithstanding the requirements of this subsection
6993	6993	18 (d), the total amount paid under sourcing agreements with
6994	6994	19 clean coal facilities pursuant to the procurement plan for
6995	6995	20 any given year shall be reduced by an amount necessary to
6996	6996	21 limit the annual estimated average net increase due to the
6997	6997	22 costs of these resources included in the amounts paid by
6998	6998	23 eligible retail customers in connection with electric
6999	6999	24 service to:
7000	7000	25 (A) in 2010, no more than 0.5% of the amount paid
7001	7001	26 per kilowatthour by those customers during the year
7002	7002
7003	7003
7004	7004
7005	7005
7006	7006
7007	7007	SB3997 - 194 - LRB103 43686 LNS 77044 b
7008	7008
7009	7009
7010	7010	SB3997- 195 -LRB103 43686 LNS 77044 b SB3997 - 195 - LRB103 43686 LNS 77044 b
7011	7011	SB3997 - 195 - LRB103 43686 LNS 77044 b
7012	7012	1 ending May 31, 2009;
7013	7013	2 (B) in 2011, the greater of an additional 0.5% of
7014	7014	3 the amount paid per kilowatthour by those customers
7015	7015	4 during the year ending May 31, 2010 or 1% of the amount
7016	7016	5 paid per kilowatthour by those customers during the
7017	7017	6 year ending May 31, 2009;
7018	7018	7 (C) in 2012, the greater of an additional 0.5% of
7019	7019	8 the amount paid per kilowatthour by those customers
7020	7020	9 during the year ending May 31, 2011 or 1.5% of the
7021	7021	10 amount paid per kilowatthour by those customers during
7022	7022	11 the year ending May 31, 2009;
7023	7023	12 (D) in 2013, the greater of an additional 0.5% of
7024	7024	13 the amount paid per kilowatthour by those customers
7025	7025	14 during the year ending May 31, 2012 or 2% of the amount
7026	7026	15 paid per kilowatthour by those customers during the
7027	7027	16 year ending May 31, 2009; and
7028	7028	17 (E) thereafter, the total amount paid under
7029	7029	18 sourcing agreements with clean coal facilities
7030	7030	19 pursuant to the procurement plan for any single year
7031	7031	20 shall be reduced by an amount necessary to limit the
7032	7032	21 estimated average net increase due to the cost of
7033	7033	22 these resources included in the amounts paid by
7034	7034	23 eligible retail customers in connection with electric
7035	7035	24 service to no more than the greater of (i) 2.015% of
7036	7036	25 the amount paid per kilowatthour by those customers
7037	7037	26 during the year ending May 31, 2009 or (ii) the
7038	7038
7039	7039
7040	7040
7041	7041
7042	7042
7043	7043	SB3997 - 195 - LRB103 43686 LNS 77044 b
7044	7044
7045	7045
7046	7046	SB3997- 196 -LRB103 43686 LNS 77044 b SB3997 - 196 - LRB103 43686 LNS 77044 b
7047	7047	SB3997 - 196 - LRB103 43686 LNS 77044 b
7048	7048	1 incremental amount per kilowatthour paid for these
7049	7049	2 resources in 2013. These requirements may be altered
7050	7050	3 only as provided by statute.
7051	7051	4 No later than June 30, 2015, the Commission shall
7052	7052	5 review the limitation on the total amount paid under
7053	7053	6 sourcing agreements, if any, with clean coal facilities
7054	7054	7 pursuant to this subsection (d) and report to the General
7055	7055	8 Assembly its findings as to whether that limitation unduly
7056	7056	9 constrains the amount of electricity generated by
7057	7057	10 cost-effective clean coal facilities that is covered by
7058	7058	11 sourcing agreements.
7059	7059	12 (3) Initial clean coal facility. In order to promote
7060	7060	13 development of clean coal facilities in Illinois, each
7061	7061	14 electric utility subject to this Section shall execute a
7062	7062	15 sourcing agreement to source electricity from a proposed
7063	7063	16 clean coal facility in Illinois (the "initial clean coal
7064	7064	17 facility") that will have a nameplate capacity of at least
7065	7065	18 500 MW when commercial operation commences, that has a
7066	7066	19 final Clean Air Act permit on June 1, 2009 (the effective
7067	7067	20 date of Public Act 95-1027), and that will meet the
7068	7068	21 definition of clean coal facility in Section 1-10 of this
7069	7069	22 Act when commercial operation commences. The sourcing
7070	7070	23 agreements with this initial clean coal facility shall be
7071	7071	24 subject to both approval of the initial clean coal
7072	7072	25 facility by the General Assembly and satisfaction of the
7073	7073	26 requirements of paragraph (4) of this subsection (d) and
7074	7074
7075	7075
7076	7076
7077	7077
7078	7078
7079	7079	SB3997 - 196 - LRB103 43686 LNS 77044 b
7080	7080
7081	7081
7082	7082	SB3997- 197 -LRB103 43686 LNS 77044 b SB3997 - 197 - LRB103 43686 LNS 77044 b
7083	7083	SB3997 - 197 - LRB103 43686 LNS 77044 b
7084	7084	1 shall be executed within 90 days after any such approval
7085	7085	2 by the General Assembly. The Agency and the Commission
7086	7086	3 shall have authority to inspect all books and records
7087	7087	4 associated with the initial clean coal facility during the
7088	7088	5 term of such a sourcing agreement. A utility's sourcing
7089	7089	6 agreement for electricity produced by the initial clean
7090	7090	7 coal facility shall include:
7091	7091	8 (A) a formula contractual price (the "contract
7092	7092	9 price") approved pursuant to paragraph (4) of this
7093	7093	10 subsection (d), which shall:
7094	7094	11 (i) be determined using a cost of service
7095	7095	12 methodology employing either a level or deferred
7096	7096	13 capital recovery component, based on a capital
7097	7097	14 structure consisting of 45% equity and 55% debt,
7098	7098	15 and a return on equity as may be approved by the
7099	7099	16 Federal Energy Regulatory Commission, which in any
7100	7100	17 case may not exceed the lower of 11.5% or the rate
7101	7101	18 of return approved by the General Assembly
7102	7102	19 pursuant to paragraph (4) of this subsection (d);
7103	7103	20 and
7104	7104	21 (ii) provide that all miscellaneous net
7105	7105	22 revenue, including but not limited to net revenue
7106	7106	23 from the sale of emission allowances, if any,
7107	7107	24 substitute natural gas, if any, grants or other
7108	7108	25 support provided by the State of Illinois or the
7109	7109	26 United States Government, firm transmission
7110	7110
7111	7111
7112	7112
7113	7113
7114	7114
7115	7115	SB3997 - 197 - LRB103 43686 LNS 77044 b
7116	7116
7117	7117
7118	7118	SB3997- 198 -LRB103 43686 LNS 77044 b SB3997 - 198 - LRB103 43686 LNS 77044 b
7119	7119	SB3997 - 198 - LRB103 43686 LNS 77044 b
7120	7120	1 rights, if any, by-products produced by the
7121	7121	2 facility, energy or capacity derived from the
7122	7122	3 facility and not covered by a sourcing agreement
7123	7123	4 pursuant to paragraph (3) of this subsection (d)
7124	7124	5 or item (5) of subsection (d) of Section 16-115 of
7125	7125	6 the Public Utilities Act, whether generated from
7126	7126	7 the synthesis gas derived from coal, from SNG, or
7127	7127	8 from natural gas, shall be credited against the
7128	7128	9 revenue requirement for this initial clean coal
7129	7129	10 facility;
7130	7130	11 (B) power purchase provisions, which shall:
7131	7131	12 (i) provide that the utility party to such
7132	7132	13 sourcing agreement shall pay the contract price
7133	7133	14 for electricity delivered under such sourcing
7134	7134	15 agreement;
7135	7135	16 (ii) require delivery of electricity to the
7136	7136	17 regional transmission organization market of the
7137	7137	18 utility that is party to such sourcing agreement;
7138	7138	19 (iii) require the utility party to such
7139	7139	20 sourcing agreement to buy from the initial clean
7140	7140	21 coal facility in each hour an amount of energy
7141	7141	22 equal to all clean coal energy made available from
7142	7142	23 the initial clean coal facility during such hour
7143	7143	24 times a fraction, the numerator of which is such
7144	7144	25 utility's retail market sales of electricity
7145	7145	26 (expressed in kilowatthours sold) in the State
7146	7146
7147	7147
7148	7148
7149	7149
7150	7150
7151	7151	SB3997 - 198 - LRB103 43686 LNS 77044 b
7152	7152
7153	7153
7154	7154	SB3997- 199 -LRB103 43686 LNS 77044 b SB3997 - 199 - LRB103 43686 LNS 77044 b
7155	7155	SB3997 - 199 - LRB103 43686 LNS 77044 b
7156	7156	1 during the prior calendar month and the
7157	7157	2 denominator of which is the total retail market
7158	7158	3 sales of electricity (expressed in kilowatthours
7159	7159	4 sold) in the State by utilities during such prior
7160	7160	5 month and the sales of electricity (expressed in
7161	7161	6 kilowatthours sold) in the State by alternative
7162	7162	7 retail electric suppliers during such prior month
7163	7163	8 that are subject to the requirements of this
7164	7164	9 subsection (d) and paragraph (5) of subsection (d)
7165	7165	10 of Section 16-115 of the Public Utilities Act,
7166	7166	11 provided that the amount purchased by the utility
7167	7167	12 in any year will be limited by paragraph (2) of
7168	7168	13 this subsection (d); and
7169	7169	14 (iv) be considered pre-existing contracts in
7170	7170	15 such utility's procurement plans for eligible
7171	7171	16 retail customers;
7172	7172	17 (C) contract for differences provisions, which
7173	7173	18 shall:
7174	7174	19 (i) require the utility party to such sourcing
7175	7175	20 agreement to contract with the initial clean coal
7176	7176	21 facility in each hour with respect to an amount of
7177	7177	22 energy equal to all clean coal energy made
7178	7178	23 available from the initial clean coal facility
7179	7179	24 during such hour times a fraction, the numerator
7180	7180	25 of which is such utility's retail market sales of
7181	7181	26 electricity (expressed in kilowatthours sold) in
7182	7182
7183	7183
7184	7184
7185	7185
7186	7186
7187	7187	SB3997 - 199 - LRB103 43686 LNS 77044 b
7188	7188
7189	7189
7190	7190	SB3997- 200 -LRB103 43686 LNS 77044 b SB3997 - 200 - LRB103 43686 LNS 77044 b
7191	7191	SB3997 - 200 - LRB103 43686 LNS 77044 b
7192	7192	1 the utility's service territory in the State
7193	7193	2 during the prior calendar month and the
7194	7194	3 denominator of which is the total retail market
7195	7195	4 sales of electricity (expressed in kilowatthours
7196	7196	5 sold) in the State by utilities during such prior
7197	7197	6 month and the sales of electricity (expressed in
7198	7198	7 kilowatthours sold) in the State by alternative
7199	7199	8 retail electric suppliers during such prior month
7200	7200	9 that are subject to the requirements of this
7201	7201	10 subsection (d) and paragraph (5) of subsection (d)
7202	7202	11 of Section 16-115 of the Public Utilities Act,
7203	7203	12 provided that the amount paid by the utility in
7204	7204	13 any year will be limited by paragraph (2) of this
7205	7205	14 subsection (d);
7206	7206	15 (ii) provide that the utility's payment
7207	7207	16 obligation in respect of the quantity of
7208	7208	17 electricity determined pursuant to the preceding
7209	7209	18 clause (i) shall be limited to an amount equal to
7210	7210	19 (1) the difference between the contract price
7211	7211	20 determined pursuant to subparagraph (A) of
7212	7212	21 paragraph (3) of this subsection (d) and the
7213	7213	22 day-ahead price for electricity delivered to the
7214	7214	23 regional transmission organization market of the
7215	7215	24 utility that is party to such sourcing agreement
7216	7216	25 (or any successor delivery point at which such
7217	7217	26 utility's supply obligations are financially
7218	7218
7219	7219
7220	7220
7221	7221
7222	7222
7223	7223	SB3997 - 200 - LRB103 43686 LNS 77044 b
7224	7224
7225	7225
7226	7226	SB3997- 201 -LRB103 43686 LNS 77044 b SB3997 - 201 - LRB103 43686 LNS 77044 b
7227	7227	SB3997 - 201 - LRB103 43686 LNS 77044 b
7228	7228	1 settled on an hourly basis) (the "reference
7229	7229	2 price") on the day preceding the day on which the
7230	7230	3 electricity is delivered to the initial clean coal
7231	7231	4 facility busbar, multiplied by (2) the quantity of
7232	7232	5 electricity determined pursuant to the preceding
7233	7233	6 clause (i); and
7234	7234	7 (iii) not require the utility to take physical
7235	7235	8 delivery of the electricity produced by the
7236	7236	9 facility;
7237	7237	10 (D) general provisions, which shall:
7238	7238	11 (i) specify a term of no more than 30 years,
7239	7239	12 commencing on the commercial operation date of the
7240	7240	13 facility;
7241	7241	14 (ii) provide that utilities shall maintain
7242	7242	15 adequate records documenting purchases under the
7243	7243	16 sourcing agreements entered into to comply with
7244	7244	17 this subsection (d) and shall file an accounting
7245	7245	18 with the load forecast that must be filed with the
7246	7246	19 Agency by July 15 of each year, in accordance with
7247	7247	20 subsection (d) of Section 16-111.5 of the Public
7248	7248	21 Utilities Act;
7249	7249	22 (iii) provide that all costs associated with
7250	7250	23 the initial clean coal facility will be
7251	7251	24 periodically reported to the Federal Energy
7252	7252	25 Regulatory Commission and to purchasers in
7253	7253	26 accordance with applicable laws governing
7254	7254
7255	7255
7256	7256
7257	7257
7258	7258
7259	7259	SB3997 - 201 - LRB103 43686 LNS 77044 b
7260	7260
7261	7261
7262	7262	SB3997- 202 -LRB103 43686 LNS 77044 b SB3997 - 202 - LRB103 43686 LNS 77044 b
7263	7263	SB3997 - 202 - LRB103 43686 LNS 77044 b
7264	7264	1 cost-based wholesale power contracts;
7265	7265	2 (iv) permit the Illinois Power Agency to
7266	7266	3 assume ownership of the initial clean coal
7267	7267	4 facility, without monetary consideration and
7268	7268	5 otherwise on reasonable terms acceptable to the
7269	7269	6 Agency, if the Agency so requests no less than 3
7270	7270	7 years prior to the end of the stated contract
7271	7271	8 term;
7272	7272	9 (v) require the owner of the initial clean
7273	7273	10 coal facility to provide documentation to the
7274	7274	11 Commission each year, starting in the facility's
7275	7275	12 first year of commercial operation, accurately
7276	7276	13 reporting the quantity of carbon emissions from
7277	7277	14 the facility that have been captured and
7278	7278	15 sequestered and report any quantities of carbon
7279	7279	16 released from the site or sites at which carbon
7280	7280	17 emissions were sequestered in prior years, based
7281	7281	18 on continuous monitoring of such sites. If, in any
7282	7282	19 year after the first year of commercial operation,
7283	7283	20 the owner of the facility fails to demonstrate
7284	7284	21 that the initial clean coal facility captured and
7285	7285	22 sequestered at least 50% of the total carbon
7286	7286	23 emissions that the facility would otherwise emit
7287	7287	24 or that sequestration of emissions from prior
7288	7288	25 years has failed, resulting in the release of
7289	7289	26 carbon dioxide into the atmosphere, the owner of
7290	7290
7291	7291
7292	7292
7293	7293
7294	7294
7295	7295	SB3997 - 202 - LRB103 43686 LNS 77044 b
7296	7296
7297	7297
7298	7298	SB3997- 203 -LRB103 43686 LNS 77044 b SB3997 - 203 - LRB103 43686 LNS 77044 b
7299	7299	SB3997 - 203 - LRB103 43686 LNS 77044 b
7300	7300	1 the facility must offset excess emissions. Any
7301	7301	2 such carbon offsets must be permanent, additional,
7302	7302	3 verifiable, real, located within the State of
7303	7303	4 Illinois, and legally and practicably enforceable.
7304	7304	5 The cost of such offsets for the facility that are
7305	7305	6 not recoverable shall not exceed $15 million in
7306	7306	7 any given year. No costs of any such purchases of
7307	7307	8 carbon offsets may be recovered from a utility or
7308	7308	9 its customers. All carbon offsets purchased for
7309	7309	10 this purpose and any carbon emission credits
7310	7310	11 associated with sequestration of carbon from the
7311	7311	12 facility must be permanently retired. The initial
7312	7312	13 clean coal facility shall not forfeit its
7313	7313	14 designation as a clean coal facility if the
7314	7314	15 facility fails to fully comply with the applicable
7315	7315	16 carbon sequestration requirements in any given
7316	7316	17 year, provided the requisite offsets are
7317	7317	18 purchased. However, the Attorney General, on
7318	7318	19 behalf of the People of the State of Illinois, may
7319	7319	20 specifically enforce the facility's sequestration
7320	7320	21 requirement and the other terms of this contract
7321	7321	22 provision. Compliance with the sequestration
7322	7322	23 requirements and offset purchase requirements
7323	7323	24 specified in paragraph (3) of this subsection (d)
7324	7324	25 shall be reviewed annually by an independent
7325	7325	26 expert retained by the owner of the initial clean
7326	7326
7327	7327
7328	7328
7329	7329
7330	7330
7331	7331	SB3997 - 203 - LRB103 43686 LNS 77044 b
7332	7332
7333	7333
7334	7334	SB3997- 204 -LRB103 43686 LNS 77044 b SB3997 - 204 - LRB103 43686 LNS 77044 b
7335	7335	SB3997 - 204 - LRB103 43686 LNS 77044 b
7336	7336	1 coal facility, with the advance written approval
7337	7337	2 of the Attorney General. The Commission may, in
7338	7338	3 the course of the review specified in item (vii),
7339	7339	4 reduce the allowable return on equity for the
7340	7340	5 facility if the facility willfully fails to comply
7341	7341	6 with the carbon capture and sequestration
7342	7342	7 requirements set forth in this item (v);
7343	7343	8 (vi) include limits on, and accordingly
7344	7344	9 provide for modification of, the amount the
7345	7345	10 utility is required to source under the sourcing
7346	7346	11 agreement consistent with paragraph (2) of this
7347	7347	12 subsection (d);
7348	7348	13 (vii) require Commission review: (1) to
7349	7349	14 determine the justness, reasonableness, and
7350	7350	15 prudence of the inputs to the formula referenced
7351	7351	16 in subparagraphs (A)(i) through (A)(iii) of
7352	7352	17 paragraph (3) of this subsection (d), prior to an
7353	7353	18 adjustment in those inputs including, without
7354	7354	19 limitation, the capital structure and return on
7355	7355	20 equity, fuel costs, and other operations and
7356	7356	21 maintenance costs and (2) to approve the costs to
7357	7357	22 be passed through to customers under the sourcing
7358	7358	23 agreement by which the utility satisfies its
7359	7359	24 statutory obligations. Commission review shall
7360	7360	25 occur no less than every 3 years, regardless of
7361	7361	26 whether any adjustments have been proposed, and
7362	7362
7363	7363
7364	7364
7365	7365
7366	7366
7367	7367	SB3997 - 204 - LRB103 43686 LNS 77044 b
7368	7368
7369	7369
7370	7370	SB3997- 205 -LRB103 43686 LNS 77044 b SB3997 - 205 - LRB103 43686 LNS 77044 b
7371	7371	SB3997 - 205 - LRB103 43686 LNS 77044 b
7372	7372	1 shall be completed within 9 months;
7373	7373	2 (viii) limit the utility's obligation to such
7374	7374	3 amount as the utility is allowed to recover
7375	7375	4 through tariffs filed with the Commission,
7376	7376	5 provided that neither the clean coal facility nor
7377	7377	6 the utility waives any right to assert federal
7378	7378	7 pre-emption or any other argument in response to a
7379	7379	8 purported disallowance of recovery costs;
7380	7380	9 (ix) limit the utility's or alternative retail
7381	7381	10 electric supplier's obligation to incur any
7382	7382	11 liability until such time as the facility is in
7383	7383	12 commercial operation and generating power and
7384	7384	13 energy and such power and energy is being
7385	7385	14 delivered to the facility busbar;
7386	7386	15 (x) provide that the owner or owners of the
7387	7387	16 initial clean coal facility, which is the
7388	7388	17 counterparty to such sourcing agreement, shall
7389	7389	18 have the right from time to time to elect whether
7390	7390	19 the obligations of the utility party thereto shall
7391	7391	20 be governed by the power purchase provisions or
7392	7392	21 the contract for differences provisions;
7393	7393	22 (xi) append documentation showing that the
7394	7394	23 formula rate and contract, insofar as they relate
7395	7395	24 to the power purchase provisions, have been
7396	7396	25 approved by the Federal Energy Regulatory
7397	7397	26 Commission pursuant to Section 205 of the Federal
7398	7398
7399	7399
7400	7400
7401	7401
7402	7402
7403	7403	SB3997 - 205 - LRB103 43686 LNS 77044 b
7404	7404
7405	7405
7406	7406	SB3997- 206 -LRB103 43686 LNS 77044 b SB3997 - 206 - LRB103 43686 LNS 77044 b
7407	7407	SB3997 - 206 - LRB103 43686 LNS 77044 b
7408	7408	1 Power Act;
7409	7409	2 (xii) provide that any changes to the terms of
7410	7410	3 the contract, insofar as such changes relate to
7411	7411	4 the power purchase provisions, are subject to
7412	7412	5 review under the public interest standard applied
7413	7413	6 by the Federal Energy Regulatory Commission
7414	7414	7 pursuant to Sections 205 and 206 of the Federal
7415	7415	8 Power Act; and
7416	7416	9 (xiii) conform with customary lender
7417	7417	10 requirements in power purchase agreements used as
7418	7418	11 the basis for financing non-utility generators.
7419	7419	12 (4) Effective date of sourcing agreements with the
7420	7420	13 initial clean coal facility. Any proposed sourcing
7421	7421	14 agreement with the initial clean coal facility shall not
7422	7422	15 become effective unless the following reports are prepared
7423	7423	16 and submitted and authorizations and approvals obtained:
7424	7424	17 (i) Facility cost report. The owner of the initial
7425	7425	18 clean coal facility shall submit to the Commission,
7426	7426	19 the Agency, and the General Assembly a front-end
7427	7427	20 engineering and design study, a facility cost report,
7428	7428	21 method of financing (including but not limited to
7429	7429	22 structure and associated costs), and an operating and
7430	7430	23 maintenance cost quote for the facility (collectively
7431	7431	24 "facility cost report"), which shall be prepared in
7432	7432	25 accordance with the requirements of this paragraph (4)
7433	7433	26 of subsection (d) of this Section, and shall provide
7434	7434
7435	7435
7436	7436
7437	7437
7438	7438
7439	7439	SB3997 - 206 - LRB103 43686 LNS 77044 b
7440	7440
7441	7441
7442	7442	SB3997- 207 -LRB103 43686 LNS 77044 b SB3997 - 207 - LRB103 43686 LNS 77044 b
7443	7443	SB3997 - 207 - LRB103 43686 LNS 77044 b
7444	7444	1 the Commission and the Agency access to the work
7445	7445	2 papers, relied upon documents, and any other backup
7446	7446	3 documentation related to the facility cost report.
7447	7447	4 (ii) Commission report. Within 6 months following
7448	7448	5 receipt of the facility cost report, the Commission,
7449	7449	6 in consultation with the Agency, shall submit a report
7450	7450	7 to the General Assembly setting forth its analysis of
7451	7451	8 the facility cost report. Such report shall include,
7452	7452	9 but not be limited to, a comparison of the costs
7453	7453	10 associated with electricity generated by the initial
7454	7454	11 clean coal facility to the costs associated with
7455	7455	12 electricity generated by other types of generation
7456	7456	13 facilities, an analysis of the rate impacts on
7457	7457	14 residential and small business customers over the life
7458	7458	15 of the sourcing agreements, and an analysis of the
7459	7459	16 likelihood that the initial clean coal facility will
7460	7460	17 commence commercial operation by and be delivering
7461	7461	18 power to the facility's busbar by 2016. To assist in
7462	7462	19 the preparation of its report, the Commission, in
7463	7463	20 consultation with the Agency, may hire one or more
7464	7464	21 experts or consultants, the costs of which shall be
7465	7465	22 paid for by the owner of the initial clean coal
7466	7466	23 facility. The Commission and Agency may begin the
7467	7467	24 process of selecting such experts or consultants prior
7468	7468	25 to receipt of the facility cost report.
7469	7469	26 (iii) General Assembly approval. The proposed
7470	7470
7471	7471
7472	7472
7473	7473
7474	7474
7475	7475	SB3997 - 207 - LRB103 43686 LNS 77044 b
7476	7476
7477	7477
7478	7478	SB3997- 208 -LRB103 43686 LNS 77044 b SB3997 - 208 - LRB103 43686 LNS 77044 b
7479	7479	SB3997 - 208 - LRB103 43686 LNS 77044 b
7480	7480	1 sourcing agreements shall not take effect unless,
7481	7481	2 based on the facility cost report and the Commission's
7482	7482	3 report, the General Assembly enacts authorizing
7483	7483	4 legislation approving (A) the projected price, stated
7484	7484	5 in cents per kilowatthour, to be charged for
7485	7485	6 electricity generated by the initial clean coal
7486	7486	7 facility, (B) the projected impact on residential and
7487	7487	8 small business customers' bills over the life of the
7488	7488	9 sourcing agreements, and (C) the maximum allowable
7489	7489	10 return on equity for the project; and
7490	7490	11 (iv) Commission review. If the General Assembly
7491	7491	12 enacts authorizing legislation pursuant to
7492	7492	13 subparagraph (iii) approving a sourcing agreement, the
7493	7493	14 Commission shall, within 90 days of such enactment,
7494	7494	15 complete a review of such sourcing agreement. During
7495	7495	16 such time period, the Commission shall implement any
7496	7496	17 directive of the General Assembly, resolve any
7497	7497	18 disputes between the parties to the sourcing agreement
7498	7498	19 concerning the terms of such agreement, approve the
7499	7499	20 form of such agreement, and issue an order finding
7500	7500	21 that the sourcing agreement is prudent and reasonable.
7501	7501	22 The facility cost report shall be prepared as follows:
7502	7502	23 (A) The facility cost report shall be prepared by
7503	7503	24 duly licensed engineering and construction firms
7504	7504	25 detailing the estimated capital costs payable to one
7505	7505	26 or more contractors or suppliers for the engineering,
7506	7506
7507	7507
7508	7508
7509	7509
7510	7510
7511	7511	SB3997 - 208 - LRB103 43686 LNS 77044 b
7512	7512
7513	7513
7514	7514	SB3997- 209 -LRB103 43686 LNS 77044 b SB3997 - 209 - LRB103 43686 LNS 77044 b
7515	7515	SB3997 - 209 - LRB103 43686 LNS 77044 b
7516	7516	1 procurement and construction of the components
7517	7517	2 comprising the initial clean coal facility and the
7518	7518	3 estimated costs of operation and maintenance of the
7519	7519	4 facility. The facility cost report shall include:
7520	7520	5 (i) an estimate of the capital cost of the
7521	7521	6 core plant based on one or more front end
7522	7522	7 engineering and design studies for the
7523	7523	8 gasification island and related facilities. The
7524	7524	9 core plant shall include all civil, structural,
7525	7525	10 mechanical, electrical, control, and safety
7526	7526	11 systems.
7527	7527	12 (ii) an estimate of the capital cost of the
7528	7528	13 balance of the plant, including any capital costs
7529	7529	14 associated with sequestration of carbon dioxide
7530	7530	15 emissions and all interconnects and interfaces
7531	7531	16 required to operate the facility, such as
7532	7532	17 transmission of electricity, construction or
7533	7533	18 backfeed power supply, pipelines to transport
7534	7534	19 substitute natural gas or carbon dioxide, potable
7535	7535	20 water supply, natural gas supply, water supply,
7536	7536	21 water discharge, landfill, access roads, and coal
7537	7537	22 delivery.
7538	7538	23 The quoted construction costs shall be expressed
7539	7539	24 in nominal dollars as of the date that the quote is
7540	7540	25 prepared and shall include capitalized financing costs
7541	7541	26 during construction, taxes, insurance, and other
7542	7542
7543	7543
7544	7544
7545	7545
7546	7546
7547	7547	SB3997 - 209 - LRB103 43686 LNS 77044 b
7548	7548
7549	7549
7550	7550	SB3997- 210 -LRB103 43686 LNS 77044 b SB3997 - 210 - LRB103 43686 LNS 77044 b
7551	7551	SB3997 - 210 - LRB103 43686 LNS 77044 b
7552	7552	1 owner's costs, and an assumed escalation in materials
7553	7553	2 and labor beyond the date as of which the construction
7554	7554	3 cost quote is expressed.
7555	7555	4 (B) The front end engineering and design study for
7556	7556	5 the gasification island and the cost study for the
7557	7557	6 balance of plant shall include sufficient design work
7558	7558	7 to permit quantification of major categories of
7559	7559	8 materials, commodities and labor hours, and receipt of
7560	7560	9 quotes from vendors of major equipment required to
7561	7561	10 construct and operate the clean coal facility.
7562	7562	11 (C) The facility cost report shall also include an
7563	7563	12 operating and maintenance cost quote that will provide
7564	7564	13 the estimated cost of delivered fuel, personnel,
7565	7565	14 maintenance contracts, chemicals, catalysts,
7566	7566	15 consumables, spares, and other fixed and variable
7567	7567	16 operations and maintenance costs. The delivered fuel
7568	7568	17 cost estimate will be provided by a recognized third
7569	7569	18 party expert or experts in the fuel and transportation
7570	7570	19 industries. The balance of the operating and
7571	7571	20 maintenance cost quote, excluding delivered fuel
7572	7572	21 costs, will be developed based on the inputs provided
7573	7573	22 by duly licensed engineering and construction firms
7574	7574	23 performing the construction cost quote, potential
7575	7575	24 vendors under long-term service agreements and plant
7576	7576	25 operating agreements, or recognized third party plant
7577	7577	26 operator or operators.
7578	7578
7579	7579
7580	7580
7581	7581
7582	7582
7583	7583	SB3997 - 210 - LRB103 43686 LNS 77044 b
7584	7584
7585	7585
7586	7586	SB3997- 211 -LRB103 43686 LNS 77044 b SB3997 - 211 - LRB103 43686 LNS 77044 b
7587	7587	SB3997 - 211 - LRB103 43686 LNS 77044 b
7588	7588	1 The operating and maintenance cost quote
7589	7589	2 (including the cost of the front end engineering and
7590	7590	3 design study) shall be expressed in nominal dollars as
7591	7591	4 of the date that the quote is prepared and shall
7592	7592	5 include taxes, insurance, and other owner's costs, and
7593	7593	6 an assumed escalation in materials and labor beyond
7594	7594	7 the date as of which the operating and maintenance
7595	7595	8 cost quote is expressed.
7596	7596	9 (D) The facility cost report shall also include an
7597	7597	10 analysis of the initial clean coal facility's ability
7598	7598	11 to deliver power and energy into the applicable
7599	7599	12 regional transmission organization markets and an
7600	7600	13 analysis of the expected capacity factor for the
7601	7601	14 initial clean coal facility.
7602	7602	15 (E) Amounts paid to third parties unrelated to the
7603	7603	16 owner or owners of the initial clean coal facility to
7604	7604	17 prepare the core plant construction cost quote,
7605	7605	18 including the front end engineering and design study,
7606	7606	19 and the operating and maintenance cost quote will be
7607	7607	20 reimbursed through Coal Development Bonds.
7608	7608	21 (5) Re-powering and retrofitting coal-fired power
7609	7609	22 plants previously owned by Illinois utilities to qualify
7610	7610	23 as clean coal facilities. During the 2009 procurement
7611	7611	24 planning process and thereafter, the Agency and the
7612	7612	25 Commission shall consider sourcing agreements covering
7613	7613	26 electricity generated by power plants that were previously
7614	7614
7615	7615
7616	7616
7617	7617
7618	7618
7619	7619	SB3997 - 211 - LRB103 43686 LNS 77044 b
7620	7620
7621	7621
7622	7622	SB3997- 212 -LRB103 43686 LNS 77044 b SB3997 - 212 - LRB103 43686 LNS 77044 b
7623	7623	SB3997 - 212 - LRB103 43686 LNS 77044 b
7624	7624	1 owned by Illinois utilities and that have been or will be
7625	7625	2 converted into clean coal facilities, as defined by
7626	7626	3 Section 1-10 of this Act. Pursuant to such procurement
7627	7627	4 planning process, the owners of such facilities may
7628	7628	5 propose to the Agency sourcing agreements with utilities
7629	7629	6 and alternative retail electric suppliers required to
7630	7630	7 comply with subsection (d) of this Section and item (5) of
7631	7631	8 subsection (d) of Section 16-115 of the Public Utilities
7632	7632	9 Act, covering electricity generated by such facilities. In
7633	7633	10 the case of sourcing agreements that are power purchase
7634	7634	11 agreements, the contract price for electricity sales shall
7635	7635	12 be established on a cost of service basis. In the case of
7636	7636	13 sourcing agreements that are contracts for differences,
7637	7637	14 the contract price from which the reference price is
7638	7638	15 subtracted shall be established on a cost of service
7639	7639	16 basis. The Agency and the Commission may approve any such
7640	7640	17 utility sourcing agreements that do not exceed cost-based
7641	7641	18 benchmarks developed by the procurement administrator, in
7642	7642	19 consultation with the Commission staff, Agency staff and
7643	7643	20 the procurement monitor, subject to Commission review and
7644	7644	21 approval. The Commission shall have authority to inspect
7645	7645	22 all books and records associated with these clean coal
7646	7646	23 facilities during the term of any such contract.
7647	7647	24 (6) Costs incurred under this subsection (d) or
7648	7648	25 pursuant to a contract entered into under this subsection
7649	7649	26 (d) shall be deemed prudently incurred and reasonable in
7650	7650
7651	7651
7652	7652
7653	7653
7654	7654
7655	7655	SB3997 - 212 - LRB103 43686 LNS 77044 b
7656	7656
7657	7657
7658	7658	SB3997- 213 -LRB103 43686 LNS 77044 b SB3997 - 213 - LRB103 43686 LNS 77044 b
7659	7659	SB3997 - 213 - LRB103 43686 LNS 77044 b
7660	7660	1 amount and the electric utility shall be entitled to full
7661	7661	2 cost recovery pursuant to the tariffs filed with the
7662	7662	3 Commission.
7663	7663	4 (d-5) Zero emission standard.
7664	7664	5 (1) Beginning with the delivery year commencing on
7665	7665	6 June 1, 2017, the Agency shall, for electric utilities
7666	7666	7 that serve at least 100,000 retail customers in this
7667	7667	8 State, procure contracts with zero emission facilities
7668	7668	9 that are reasonably capable of generating cost-effective
7669	7669	10 zero emission credits in an amount approximately equal to
7670	7670	11 16% of the actual amount of electricity delivered by each
7671	7671	12 electric utility to retail customers in the State during
7672	7672	13 calendar year 2014. For an electric utility serving fewer
7673	7673	14 than 100,000 retail customers in this State that
7674	7674	15 requested, under Section 16-111.5 of the Public Utilities
7675	7675	16 Act, that the Agency procure power and energy for all or a
7676	7676	17 portion of the utility's Illinois load for the delivery
7677	7677	18 year commencing June 1, 2016, the Agency shall procure
7678	7678	19 contracts with zero emission facilities that are
7679	7679	20 reasonably capable of generating cost-effective zero
7680	7680	21 emission credits in an amount approximately equal to 16%
7681	7681	22 of the portion of power and energy to be procured by the
7682	7682	23 Agency for the utility. The duration of the contracts
7683	7683	24 procured under this subsection (d-5) shall be for a term
7684	7684	25 of 10 years ending May 31, 2027. The quantity of zero
7685	7685	26 emission credits to be procured under the contracts shall
7686	7686
7687	7687
7688	7688
7689	7689
7690	7690
7691	7691	SB3997 - 213 - LRB103 43686 LNS 77044 b
7692	7692
7693	7693
7694	7694	SB3997- 214 -LRB103 43686 LNS 77044 b SB3997 - 214 - LRB103 43686 LNS 77044 b
7695	7695	SB3997 - 214 - LRB103 43686 LNS 77044 b
7696	7696	1 be all of the zero emission credits generated by the zero
7697	7697	2 emission facility in each delivery year; however, if the
7698	7698	3 zero emission facility is owned by more than one entity,
7699	7699	4 then the quantity of zero emission credits to be procured
7700	7700	5 under the contracts shall be the amount of zero emission
7701	7701	6 credits that are generated from the portion of the zero
7702	7702	7 emission facility that is owned by the winning supplier.
7703	7703	8 The 16% value identified in this paragraph (1) is the
7704	7704	9 average of the percentage targets in subparagraph (B) of
7705	7705	10 paragraph (1) of subsection (c) of this Section for the 5
7706	7706	11 delivery years beginning June 1, 2017.
7707	7707	12 The procurement process shall be subject to the
7708	7708	13 following provisions:
7709	7709	14 (A) Those zero emission facilities that intend to
7710	7710	15 participate in the procurement shall submit to the
7711	7711	16 Agency the following eligibility information for each
7712	7712	17 zero emission facility on or before the date
7713	7713	18 established by the Agency:
7714	7714	19 (i) the in-service date and remaining useful
7715	7715	20 life of the zero emission facility;
7716	7716	21 (ii) the amount of power generated annually
7717	7717	22 for each of the years 2005 through 2015, and the
7718	7718	23 projected zero emission credits to be generated
7719	7719	24 over the remaining useful life of the zero
7720	7720	25 emission facility, which shall be used to
7721	7721	26 determine the capability of each facility;
7722	7722
7723	7723
7724	7724
7725	7725
7726	7726
7727	7727	SB3997 - 214 - LRB103 43686 LNS 77044 b
7728	7728
7729	7729
7730	7730	SB3997- 215 -LRB103 43686 LNS 77044 b SB3997 - 215 - LRB103 43686 LNS 77044 b
7731	7731	SB3997 - 215 - LRB103 43686 LNS 77044 b
7732	7732	1 (iii) the annual zero emission facility cost
7733	7733	2 projections, expressed on a per megawatthour
7734	7734	3 basis, over the next 6 delivery years, which shall
7735	7735	4 include the following: operation and maintenance
7736	7736	5 expenses; fully allocated overhead costs, which
7737	7737	6 shall be allocated using the methodology developed
7738	7738	7 by the Institute for Nuclear Power Operations;
7739	7739	8 fuel expenditures; non-fuel capital expenditures;
7740	7740	9 spent fuel expenditures; a return on working
7741	7741	10 capital; the cost of operational and market risks
7742	7742	11 that could be avoided by ceasing operation; and
7743	7743	12 any other costs necessary for continued
7744	7744	13 operations, provided that "necessary" means, for
7745	7745	14 purposes of this item (iii), that the costs could
7746	7746	15 reasonably be avoided only by ceasing operations
7747	7747	16 of the zero emission facility; and
7748	7748	17 (iv) a commitment to continue operating, for
7749	7749	18 the duration of the contract or contracts executed
7750	7750	19 under the procurement held under this subsection
7751	7751	20 (d-5), the zero emission facility that produces
7752	7752	21 the zero emission credits to be procured in the
7753	7753	22 procurement.
7754	7754	23 The information described in item (iii) of this
7755	7755	24 subparagraph (A) may be submitted on a confidential
7756	7756	25 basis and shall be treated and maintained by the
7757	7757	26 Agency, the procurement administrator, and the
7758	7758
7759	7759
7760	7760
7761	7761
7762	7762
7763	7763	SB3997 - 215 - LRB103 43686 LNS 77044 b
7764	7764
7765	7765
7766	7766	SB3997- 216 -LRB103 43686 LNS 77044 b SB3997 - 216 - LRB103 43686 LNS 77044 b
7767	7767	SB3997 - 216 - LRB103 43686 LNS 77044 b
7768	7768	1 Commission as confidential and proprietary and exempt
7769	7769	2 from disclosure under subparagraphs (a) and (g) of
7770	7770	3 paragraph (1) of Section 7 of the Freedom of
7771	7771	4 Information Act. The Office of Attorney General shall
7772	7772	5 have access to, and maintain the confidentiality of,
7773	7773	6 such information pursuant to Section 6.5 of the
7774	7774	7 Attorney General Act.
7775	7775	8 (B) The price for each zero emission credit
7776	7776	9 procured under this subsection (d-5) for each delivery
7777	7777	10 year shall be in an amount that equals the Social Cost
7778	7778	11 of Carbon, expressed on a price per megawatthour
7779	7779	12 basis. However, to ensure that the procurement remains
7780	7780	13 affordable to retail customers in this State if
7781	7781	14 electricity prices increase, the price in an
7782	7782	15 applicable delivery year shall be reduced below the
7783	7783	16 Social Cost of Carbon by the amount ("Price
7784	7784	17 Adjustment") by which the market price index for the
7785	7785	18 applicable delivery year exceeds the baseline market
7786	7786	19 price index for the consecutive 12-month period ending
7787	7787	20 May 31, 2016. If the Price Adjustment is greater than
7788	7788	21 or equal to the Social Cost of Carbon in an applicable
7789	7789	22 delivery year, then no payments shall be due in that
7790	7790	23 delivery year. The components of this calculation are
7791	7791	24 defined as follows:
7792	7792	25 (i) Social Cost of Carbon: The Social Cost of
7793	7793	26 Carbon is $16.50 per megawatthour, which is based
7794	7794
7795	7795
7796	7796
7797	7797
7798	7798
7799	7799	SB3997 - 216 - LRB103 43686 LNS 77044 b
7800	7800
7801	7801
7802	7802	SB3997- 217 -LRB103 43686 LNS 77044 b SB3997 - 217 - LRB103 43686 LNS 77044 b
7803	7803	SB3997 - 217 - LRB103 43686 LNS 77044 b
7804	7804	1 on the U.S. Interagency Working Group on Social
7805	7805	2 Cost of Carbon's price in the August 2016
7806	7806	3 Technical Update using a 3% discount rate,
7807	7807	4 adjusted for inflation for each year of the
7808	7808	5 program. Beginning with the delivery year
7809	7809	6 commencing June 1, 2023, the price per
7810	7810	7 megawatthour shall increase by $1 per
7811	7811	8 megawatthour, and continue to increase by an
7812	7812	9 additional $1 per megawatthour each delivery year
7813	7813	10 thereafter.
7814	7814	11 (ii) Baseline market price index: The baseline
7815	7815	12 market price index for the consecutive 12-month
7816	7816	13 period ending May 31, 2016 is $31.40 per
7817	7817	14 megawatthour, which is based on the sum of (aa)
7818	7818	15 the average day-ahead energy price across all
7819	7819	16 hours of such 12-month period at the PJM
7820	7820	17 Interconnection LLC Northern Illinois Hub, (bb)
7821	7821	18 50% multiplied by the Base Residual Auction, or
7822	7822	19 its successor, capacity price for the rest of the
7823	7823	20 RTO zone group determined by PJM Interconnection
7824	7824	21 LLC, divided by 24 hours per day, and (cc) 50%
7825	7825	22 multiplied by the Planning Resource Auction, or
7826	7826	23 its successor, capacity price for Zone 4
7827	7827	24 determined by the Midcontinent Independent System
7828	7828	25 Operator, Inc., divided by 24 hours per day.
7829	7829	26 (iii) Market price index: The market price
7830	7830
7831	7831
7832	7832
7833	7833
7834	7834
7835	7835	SB3997 - 217 - LRB103 43686 LNS 77044 b
7836	7836
7837	7837
7838	7838	SB3997- 218 -LRB103 43686 LNS 77044 b SB3997 - 218 - LRB103 43686 LNS 77044 b
7839	7839	SB3997 - 218 - LRB103 43686 LNS 77044 b
7840	7840	1 index for a delivery year shall be the sum of
7841	7841	2 projected energy prices and projected capacity
7842	7842	3 prices determined as follows:
7843	7843	4 (aa) Projected energy prices: the
7844	7844	5 projected energy prices for the applicable
7845	7845	6 delivery year shall be calculated once for the
7846	7846	7 year using the forward market price for the
7847	7847	8 PJM Interconnection, LLC Northern Illinois
7848	7848	9 Hub. The forward market price shall be
7849	7849	10 calculated as follows: the energy forward
7850	7850	11 prices for each month of the applicable
7851	7851	12 delivery year averaged for each trade date
7852	7852	13 during the calendar year immediately preceding
7853	7853	14 that delivery year to produce a single energy
7854	7854	15 forward price for the delivery year. The
7855	7855	16 forward market price calculation shall use
7856	7856	17 data published by the Intercontinental
7857	7857	18 Exchange, or its successor.
7858	7858	19 (bb) Projected capacity prices:
7859	7859	20 (I) For the delivery years commencing
7860	7860	21 June 1, 2017, June 1, 2018, and June 1,
7861	7861	22 2019, the projected capacity price shall
7862	7862	23 be equal to the sum of (1) 50% multiplied
7863	7863	24 by the Base Residual Auction, or its
7864	7864	25 successor, price for the rest of the RTO
7865	7865	26 zone group as determined by PJM
7866	7866
7867	7867
7868	7868
7869	7869
7870	7870
7871	7871	SB3997 - 218 - LRB103 43686 LNS 77044 b
7872	7872
7873	7873
7874	7874	SB3997- 219 -LRB103 43686 LNS 77044 b SB3997 - 219 - LRB103 43686 LNS 77044 b
7875	7875	SB3997 - 219 - LRB103 43686 LNS 77044 b
7876	7876	1 Interconnection LLC, divided by 24 hours
7877	7877	2 per day and, (2) 50% multiplied by the
7878	7878	3 resource auction price determined in the
7879	7879	4 resource auction administered by the
7880	7880	5 Midcontinent Independent System Operator,
7881	7881	6 Inc., in which the largest percentage of
7882	7882	7 load cleared for Local Resource Zone 4,
7883	7883	8 divided by 24 hours per day, and where
7884	7884	9 such price is determined by the
7885	7885	10 Midcontinent Independent System Operator,
7886	7886	11 Inc.
7887	7887	12 (II) For the delivery year commencing
7888	7888	13 June 1, 2020, and each year thereafter,
7889	7889	14 the projected capacity price shall be
7890	7890	15 equal to the sum of (1) 50% multiplied by
7891	7891	16 the Base Residual Auction, or its
7892	7892	17 successor, price for the ComEd zone as
7893	7893	18 determined by PJM Interconnection LLC,
7894	7894	19 divided by 24 hours per day, and (2) 50%
7895	7895	20 multiplied by the resource auction price
7896	7896	21 determined in the resource auction
7897	7897	22 administered by the Midcontinent
7898	7898	23 Independent System Operator, Inc., in
7899	7899	24 which the largest percentage of load
7900	7900	25 cleared for Local Resource Zone 4, divided
7901	7901	26 by 24 hours per day, and where such price
7902	7902
7903	7903
7904	7904
7905	7905
7906	7906
7907	7907	SB3997 - 219 - LRB103 43686 LNS 77044 b
7908	7908
7909	7909
7910	7910	SB3997- 220 -LRB103 43686 LNS 77044 b SB3997 - 220 - LRB103 43686 LNS 77044 b
7911	7911	SB3997 - 220 - LRB103 43686 LNS 77044 b
7912	7912	1 is determined by the Midcontinent
7913	7913	2 Independent System Operator, Inc.
7914	7914	3 For purposes of this subsection (d-5):
7915	7915	4 "Rest of the RTO" and "ComEd Zone" shall have
7916	7916	5 the meaning ascribed to them by PJM
7917	7917	6 Interconnection, LLC.
7918	7918	7 "RTO" means regional transmission
7919	7919	8 organization.
7920	7920	9 (C) No later than 45 days after June 1, 2017 (the
7921	7921	10 effective date of Public Act 99-906), the Agency shall
7922	7922	11 publish its proposed zero emission standard
7923	7923	12 procurement plan. The plan shall be consistent with
7924	7924	13 the provisions of this paragraph (1) and shall provide
7925	7925	14 that winning bids shall be selected based on public
7926	7926	15 interest criteria that include, but are not limited
7927	7927	16 to, minimizing carbon dioxide emissions that result
7928	7928	17 from electricity consumed in Illinois and minimizing
7929	7929	18 sulfur dioxide, nitrogen oxide, and particulate matter
7930	7930	19 emissions that adversely affect the citizens of this
7931	7931	20 State. In particular, the selection of winning bids
7932	7932	21 shall take into account the incremental environmental
7933	7933	22 benefits resulting from the procurement, such as any
7934	7934	23 existing environmental benefits that are preserved by
7935	7935	24 the procurements held under Public Act 99-906 and
7936	7936	25 would cease to exist if the procurements were not
7937	7937	26 held, including the preservation of zero emission
7938	7938
7939	7939
7940	7940
7941	7941
7942	7942
7943	7943	SB3997 - 220 - LRB103 43686 LNS 77044 b
7944	7944
7945	7945
7946	7946	SB3997- 221 -LRB103 43686 LNS 77044 b SB3997 - 221 - LRB103 43686 LNS 77044 b
7947	7947	SB3997 - 221 - LRB103 43686 LNS 77044 b
7948	7948	1 facilities. The plan shall also describe in detail how
7949	7949	2 each public interest factor shall be considered and
7950	7950	3 weighted in the bid selection process to ensure that
7951	7951	4 the public interest criteria are applied to the
7952	7952	5 procurement and given full effect.
7953	7953	6 For purposes of developing the plan, the Agency
7954	7954	7 shall consider any reports issued by a State agency,
7955	7955	8 board, or commission under House Resolution 1146 of
7956	7956	9 the 98th General Assembly and paragraph (4) of
7957	7957	10 subsection (d) of this Section, as well as publicly
7958	7958	11 available analyses and studies performed by or for
7959	7959	12 regional transmission organizations that serve the
7960	7960	13 State and their independent market monitors.
7961	7961	14 Upon publishing of the zero emission standard
7962	7962	15 procurement plan, copies of the plan shall be posted
7963	7963	16 and made publicly available on the Agency's website.
7964	7964	17 All interested parties shall have 10 days following
7965	7965	18 the date of posting to provide comment to the Agency on
7966	7966	19 the plan. All comments shall be posted to the Agency's
7967	7967	20 website. Following the end of the comment period, but
7968	7968	21 no more than 60 days later than June 1, 2017 (the
7969	7969	22 effective date of Public Act 99-906), the Agency shall
7970	7970	23 revise the plan as necessary based on the comments
7971	7971	24 received and file its zero emission standard
7972	7972	25 procurement plan with the Commission.
7973	7973	26 If the Commission determines that the plan will
7974	7974
7975	7975
7976	7976
7977	7977
7978	7978
7979	7979	SB3997 - 221 - LRB103 43686 LNS 77044 b
7980	7980
7981	7981
7982	7982	SB3997- 222 -LRB103 43686 LNS 77044 b SB3997 - 222 - LRB103 43686 LNS 77044 b
7983	7983	SB3997 - 222 - LRB103 43686 LNS 77044 b
7984	7984	1 result in the procurement of cost-effective zero
7985	7985	2 emission credits, then the Commission shall, after
7986	7986	3 notice and hearing, but no later than 45 days after the
7987	7987	4 Agency filed the plan, approve the plan or approve
7988	7988	5 with modification. For purposes of this subsection
7989	7989	6 (d-5), "cost effective" means the projected costs of
7990	7990	7 procuring zero emission credits from zero emission
7991	7991	8 facilities do not cause the limit stated in paragraph
7992	7992	9 (2) of this subsection to be exceeded.
7993	7993	10 (C-5) As part of the Commission's review and
7994	7994	11 acceptance or rejection of the procurement results,
7995	7995	12 the Commission shall, in its public notice of
7996	7996	13 successful bidders:
7997	7997	14 (i) identify how the winning bids satisfy the
7998	7998	15 public interest criteria described in subparagraph
7999	7999	16 (C) of this paragraph (1) of minimizing carbon
8000	8000	17 dioxide emissions that result from electricity
8001	8001	18 consumed in Illinois and minimizing sulfur
8002	8002	19 dioxide, nitrogen oxide, and particulate matter
8003	8003	20 emissions that adversely affect the citizens of
8004	8004	21 this State;
8005	8005	22 (ii) specifically address how the selection of
8006	8006	23 winning bids takes into account the incremental
8007	8007	24 environmental benefits resulting from the
8008	8008	25 procurement, including any existing environmental
8009	8009	26 benefits that are preserved by the procurements
8010	8010
8011	8011
8012	8012
8013	8013
8014	8014
8015	8015	SB3997 - 222 - LRB103 43686 LNS 77044 b
8016	8016
8017	8017
8018	8018	SB3997- 223 -LRB103 43686 LNS 77044 b SB3997 - 223 - LRB103 43686 LNS 77044 b
8019	8019	SB3997 - 223 - LRB103 43686 LNS 77044 b
8020	8020	1 held under Public Act 99-906 and would have ceased
8021	8021	2 to exist if the procurements had not been held,
8022	8022	3 such as the preservation of zero emission
8023	8023	4 facilities;
8024	8024	5 (iii) quantify the environmental benefit of
8025	8025	6 preserving the resources identified in item (ii)
8026	8026	7 of this subparagraph (C-5), including the
8027	8027	8 following:
8028	8028	9 (aa) the value of avoided greenhouse gas
8029	8029	10 emissions measured as the product of the zero
8030	8030	11 emission facilities' output over the contract
8031	8031	12 term multiplied by the U.S. Environmental
8032	8032	13 Protection Agency eGrid subregion carbon
8033	8033	14 dioxide emission rate and the U.S. Interagency
8034	8034	15 Working Group on Social Cost of Carbon's price
8035	8035	16 in the August 2016 Technical Update using a 3%
8036	8036	17 discount rate, adjusted for inflation for each
8037	8037	18 delivery year; and
8038	8038	19 (bb) the costs of replacement with other
8039	8039	20 zero carbon dioxide resources, including wind
8040	8040	21 and photovoltaic, based upon the simple
8041	8041	22 average of the following:
8042	8042	23 (I) the price, or if there is more
8043	8043	24 than one price, the average of the prices,
8044	8044	25 paid for renewable energy credits from new
8045	8045	26 utility-scale wind projects in the
8046	8046
8047	8047
8048	8048
8049	8049
8050	8050
8051	8051	SB3997 - 223 - LRB103 43686 LNS 77044 b
8052	8052
8053	8053
8054	8054	SB3997- 224 -LRB103 43686 LNS 77044 b SB3997 - 224 - LRB103 43686 LNS 77044 b
8055	8055	SB3997 - 224 - LRB103 43686 LNS 77044 b
8056	8056	1 procurement events specified in item (i)
8057	8057	2 of subparagraph (G) of paragraph (1) of
8058	8058	3 subsection (c) of this Section; and
8059	8059	4 (II) the price, or if there is more
8060	8060	5 than one price, the average of the prices,
8061	8061	6 paid for renewable energy credits from new
8062	8062	7 utility-scale solar projects and
8063	8063	8 brownfield site photovoltaic projects in
8064	8064	9 the procurement events specified in item
8065	8065	10 (ii) of subparagraph (G) of paragraph (1)
8066	8066	11 of subsection (c) of this Section and,
8067	8067	12 after January 1, 2015, renewable energy
8068	8068	13 credits from photovoltaic distributed
8069	8069	14 generation projects in procurement events
8070	8070	15 held under subsection (c) of this Section.
8071	8071	16 Each utility shall enter into binding contractual
8072	8072	17 arrangements with the winning suppliers.
8073	8073	18 The procurement described in this subsection
8074	8074	19 (d-5), including, but not limited to, the execution of
8075	8075	20 all contracts procured, shall be completed no later
8076	8076	21 than May 10, 2017. Based on the effective date of
8077	8077	22 Public Act 99-906, the Agency and Commission may, as
8078	8078	23 appropriate, modify the various dates and timelines
8079	8079	24 under this subparagraph and subparagraphs (C) and (D)
8080	8080	25 of this paragraph (1). The procurement and plan
8081	8081	26 approval processes required by this subsection (d-5)
8082	8082
8083	8083
8084	8084
8085	8085
8086	8086
8087	8087	SB3997 - 224 - LRB103 43686 LNS 77044 b
8088	8088
8089	8089
8090	8090	SB3997- 225 -LRB103 43686 LNS 77044 b SB3997 - 225 - LRB103 43686 LNS 77044 b
8091	8091	SB3997 - 225 - LRB103 43686 LNS 77044 b
8092	8092	1 shall be conducted in conjunction with the procurement
8093	8093	2 and plan approval processes required by subsection (c)
8094	8094	3 of this Section and Section 16-111.5 of the Public
8095	8095	4 Utilities Act, to the extent practicable.
8096	8096	5 Notwithstanding whether a procurement event is
8097	8097	6 conducted under Section 16-111.5 of the Public
8098	8098	7 Utilities Act, the Agency shall immediately initiate a
8099	8099	8 procurement process on June 1, 2017 (the effective
8100	8100	9 date of Public Act 99-906).
8101	8101	10 (D) Following the procurement event described in
8102	8102	11 this paragraph (1) and consistent with subparagraph
8103	8103	12 (B) of this paragraph (1), the Agency shall calculate
8104	8104	13 the payments to be made under each contract for the
8105	8105	14 next delivery year based on the market price index for
8106	8106	15 that delivery year. The Agency shall publish the
8107	8107	16 payment calculations no later than May 25, 2017 and
8108	8108	17 every May 25 thereafter.
8109	8109	18 (E) Notwithstanding the requirements of this
8110	8110	19 subsection (d-5), the contracts executed under this
8111	8111	20 subsection (d-5) shall provide that the zero emission
8112	8112	21 facility may, as applicable, suspend or terminate
8113	8113	22 performance under the contracts in the following
8114	8114	23 instances:
8115	8115	24 (i) A zero emission facility shall be excused
8116	8116	25 from its performance under the contract for any
8117	8117	26 cause beyond the control of the resource,
8118	8118
8119	8119
8120	8120
8121	8121
8122	8122
8123	8123	SB3997 - 225 - LRB103 43686 LNS 77044 b
8124	8124
8125	8125
8126	8126	SB3997- 226 -LRB103 43686 LNS 77044 b SB3997 - 226 - LRB103 43686 LNS 77044 b
8127	8127	SB3997 - 226 - LRB103 43686 LNS 77044 b
8128	8128	1 including, but not restricted to, acts of God,
8129	8129	2 flood, drought, earthquake, storm, fire,
8130	8130	3 lightning, epidemic, war, riot, civil disturbance
8131	8131	4 or disobedience, labor dispute, labor or material
8132	8132	5 shortage, sabotage, acts of public enemy,
8133	8133	6 explosions, orders, regulations or restrictions
8134	8134	7 imposed by governmental, military, or lawfully
8135	8135	8 established civilian authorities, which, in any of
8136	8136	9 the foregoing cases, by exercise of commercially
8137	8137	10 reasonable efforts the zero emission facility
8138	8138	11 could not reasonably have been expected to avoid,
8139	8139	12 and which, by the exercise of commercially
8140	8140	13 reasonable efforts, it has been unable to
8141	8141	14 overcome. In such event, the zero emission
8142	8142	15 facility shall be excused from performance for the
8143	8143	16 duration of the event, including, but not limited
8144	8144	17 to, delivery of zero emission credits, and no
8145	8145	18 payment shall be due to the zero emission facility
8146	8146	19 during the duration of the event.
8147	8147	20 (ii) A zero emission facility shall be
8148	8148	21 permitted to terminate the contract if legislation
8149	8149	22 is enacted into law by the General Assembly that
8150	8150	23 imposes or authorizes a new tax, special
8151	8151	24 assessment, or fee on the generation of
8152	8152	25 electricity, the ownership or leasehold of a
8153	8153	26 generating unit, or the privilege or occupation of
8154	8154
8155	8155
8156	8156
8157	8157
8158	8158
8159	8159	SB3997 - 226 - LRB103 43686 LNS 77044 b
8160	8160
8161	8161
8162	8162	SB3997- 227 -LRB103 43686 LNS 77044 b SB3997 - 227 - LRB103 43686 LNS 77044 b
8163	8163	SB3997 - 227 - LRB103 43686 LNS 77044 b
8164	8164	1 such generation, ownership, or leasehold of
8165	8165	2 generation units by a zero emission facility.
8166	8166	3 However, the provisions of this item (ii) do not
8167	8167	4 apply to any generally applicable tax, special
8168	8168	5 assessment or fee, or requirements imposed by
8169	8169	6 federal law.
8170	8170	7 (iii) A zero emission facility shall be
8171	8171	8 permitted to terminate the contract in the event
8172	8172	9 that the resource requires capital expenditures in
8173	8173	10 excess of $40,000,000 that were neither known nor
8174	8174	11 reasonably foreseeable at the time it executed the
8175	8175	12 contract and that a prudent owner or operator of
8176	8176	13 such resource would not undertake.
8177	8177	14 (iv) A zero emission facility shall be
8178	8178	15 permitted to terminate the contract in the event
8179	8179	16 the Nuclear Regulatory Commission terminates the
8180	8180	17 resource's license.
8181	8181	18 (F) If the zero emission facility elects to
8182	8182	19 terminate a contract under subparagraph (E) of this
8183	8183	20 paragraph (1), then the Commission shall reopen the
8184	8184	21 docket in which the Commission approved the zero
8185	8185	22 emission standard procurement plan under subparagraph
8186	8186	23 (C) of this paragraph (1) and, after notice and
8187	8187	24 hearing, enter an order acknowledging the contract
8188	8188	25 termination election if such termination is consistent
8189	8189	26 with the provisions of this subsection (d-5).
8190	8190
8191	8191
8192	8192
8193	8193
8194	8194
8195	8195	SB3997 - 227 - LRB103 43686 LNS 77044 b
8196	8196
8197	8197
8198	8198	SB3997- 228 -LRB103 43686 LNS 77044 b SB3997 - 228 - LRB103 43686 LNS 77044 b
8199	8199	SB3997 - 228 - LRB103 43686 LNS 77044 b
8200	8200	1 (2) For purposes of this subsection (d-5), the amount
8201	8201	2 paid per kilowatthour means the total amount paid for
8202	8202	3 electric service expressed on a per kilowatthour basis.
8203	8203	4 For purposes of this subsection (d-5), the total amount
8204	8204	5 paid for electric service includes, without limitation,
8205	8205	6 amounts paid for supply, transmission, distribution,
8206	8206	7 surcharges, and add-on taxes.
8207	8207	8 Notwithstanding the requirements of this subsection
8208	8208	9 (d-5), the contracts executed under this subsection (d-5)
8209	8209	10 shall provide that the total of zero emission credits
8210	8210	11 procured under a procurement plan shall be subject to the
8211	8211	12 limitations of this paragraph (2). For each delivery year,
8212	8212	13 the contractual volume receiving payments in such year
8213	8213	14 shall be reduced for all retail customers based on the
8214	8214	15 amount necessary to limit the net increase that delivery
8215	8215	16 year to the costs of those credits included in the amounts
8216	8216	17 paid by eligible retail customers in connection with
8217	8217	18 electric service to no more than 1.65% of the amount paid
8218	8218	19 per kilowatthour by eligible retail customers during the
8219	8219	20 year ending May 31, 2009. The result of this computation
8220	8220	21 shall apply to and reduce the procurement for all retail
8221	8221	22 customers, and all those customers shall pay the same
8222	8222	23 single, uniform cents per kilowatthour charge under
8223	8223	24 subsection (k) of Section 16-108 of the Public Utilities
8224	8224	25 Act. To arrive at a maximum dollar amount of zero emission
8225	8225	26 credits to be paid for the particular delivery year, the
8226	8226
8227	8227
8228	8228
8229	8229
8230	8230
8231	8231	SB3997 - 228 - LRB103 43686 LNS 77044 b
8232	8232
8233	8233
8234	8234	SB3997- 229 -LRB103 43686 LNS 77044 b SB3997 - 229 - LRB103 43686 LNS 77044 b
8235	8235	SB3997 - 229 - LRB103 43686 LNS 77044 b
8236	8236	1 resulting per kilowatthour amount shall be applied to the
8237	8237	2 actual amount of kilowatthours of electricity delivered by
8238	8238	3 the electric utility in the delivery year immediately
8239	8239	4 prior to the procurement, to all retail customers in its
8240	8240	5 service territory. Unpaid contractual volume for any
8241	8241	6 delivery year shall be paid in any subsequent delivery
8242	8242	7 year in which such payments can be made without exceeding
8243	8243	8 the amount specified in this paragraph (2). The
8244	8244	9 calculations required by this paragraph (2) shall be made
8245	8245	10 only once for each procurement plan year. Once the
8246	8246	11 determination as to the amount of zero emission credits to
8247	8247	12 be paid is made based on the calculations set forth in this
8248	8248	13 paragraph (2), no subsequent rate impact determinations
8249	8249	14 shall be made and no adjustments to those contract amounts
8250	8250	15 shall be allowed. All costs incurred under those contracts
8251	8251	16 and in implementing this subsection (d-5) shall be
8252	8252	17 recovered by the electric utility as provided in this
8253	8253	18 Section.
8254	8254	19 No later than June 30, 2019, the Commission shall
8255	8255	20 review the limitation on the amount of zero emission
8256	8256	21 credits procured under this subsection (d-5) and report to
8257	8257	22 the General Assembly its findings as to whether that
8258	8258	23 limitation unduly constrains the procurement of
8259	8259	24 cost-effective zero emission credits.
8260	8260	25 (3) Six years after the execution of a contract under
8261	8261	26 this subsection (d-5), the Agency shall determine whether
8262	8262
8263	8263
8264	8264
8265	8265
8266	8266
8267	8267	SB3997 - 229 - LRB103 43686 LNS 77044 b
8268	8268
8269	8269
8270	8270	SB3997- 230 -LRB103 43686 LNS 77044 b SB3997 - 230 - LRB103 43686 LNS 77044 b
8271	8271	SB3997 - 230 - LRB103 43686 LNS 77044 b
8272	8272	1 the actual zero emission credit payments received by the
8273	8273	2 supplier over the 6-year period exceed the Average ZEC
8274	8274	3 Payment. In addition, at the end of the term of a contract
8275	8275	4 executed under this subsection (d-5), or at the time, if
8276	8276	5 any, a zero emission facility's contract is terminated
8277	8277	6 under subparagraph (E) of paragraph (1) of this subsection
8278	8278	7 (d-5), then the Agency shall determine whether the actual
8279	8279	8 zero emission credit payments received by the supplier
8280	8280	9 over the term of the contract exceed the Average ZEC
8281	8281	10 Payment, after taking into account any amounts previously
8282	8282	11 credited back to the utility under this paragraph (3). If
8283	8283	12 the Agency determines that the actual zero emission credit
8284	8284	13 payments received by the supplier over the relevant period
8285	8285	14 exceed the Average ZEC Payment, then the supplier shall
8286	8286	15 credit the difference back to the utility. The amount of
8287	8287	16 the credit shall be remitted to the applicable electric
8288	8288	17 utility no later than 120 days after the Agency's
8289	8289	18 determination, which the utility shall reflect as a credit
8290	8290	19 on its retail customer bills as soon as practicable;
8291	8291	20 however, the credit remitted to the utility shall not
8292	8292	21 exceed the total amount of payments received by the
8293	8293	22 facility under its contract.
8294	8294	23 For purposes of this Section, the Average ZEC Payment
8295	8295	24 shall be calculated by multiplying the quantity of zero
8296	8296	25 emission credits delivered under the contract times the
8297	8297	26 average contract price. The average contract price shall
8298	8298
8299	8299
8300	8300
8301	8301
8302	8302
8303	8303	SB3997 - 230 - LRB103 43686 LNS 77044 b
8304	8304
8305	8305
8306	8306	SB3997- 231 -LRB103 43686 LNS 77044 b SB3997 - 231 - LRB103 43686 LNS 77044 b
8307	8307	SB3997 - 231 - LRB103 43686 LNS 77044 b
8308	8308	1 be determined by subtracting the amount calculated under
8309	8309	2 subparagraph (B) of this paragraph (3) from the amount
8310	8310	3 calculated under subparagraph (A) of this paragraph (3),
8311	8311	4 as follows:
8312	8312	5 (A) The average of the Social Cost of Carbon, as
8313	8313	6 defined in subparagraph (B) of paragraph (1) of this
8314	8314	7 subsection (d-5), during the term of the contract.
8315	8315	8 (B) The average of the market price indices, as
8316	8316	9 defined in subparagraph (B) of paragraph (1) of this
8317	8317	10 subsection (d-5), during the term of the contract,
8318	8318	11 minus the baseline market price index, as defined in
8319	8319	12 subparagraph (B) of paragraph (1) of this subsection
8320	8320	13 (d-5).
8321	8321	14 If the subtraction yields a negative number, then the
8322	8322	15 Average ZEC Payment shall be zero.
8323	8323	16 (4) Cost-effective zero emission credits procured from
8324	8324	17 zero emission facilities shall satisfy the applicable
8325	8325	18 definitions set forth in Section 1-10 of this Act.
8326	8326	19 (5) The electric utility shall retire all zero
8327	8327	20 emission credits used to comply with the requirements of
8328	8328	21 this subsection (d-5).
8329	8329	22 (6) Electric utilities shall be entitled to recover
8330	8330	23 all of the costs associated with the procurement of zero
8331	8331	24 emission credits through an automatic adjustment clause
8332	8332	25 tariff in accordance with subsection (k) and (m) of
8333	8333	26 Section 16-108 of the Public Utilities Act, and the
8334	8334
8335	8335
8336	8336
8337	8337
8338	8338
8339	8339	SB3997 - 231 - LRB103 43686 LNS 77044 b
8340	8340
8341	8341
8342	8342	SB3997- 232 -LRB103 43686 LNS 77044 b SB3997 - 232 - LRB103 43686 LNS 77044 b
8343	8343	SB3997 - 232 - LRB103 43686 LNS 77044 b
8344	8344	1 contracts executed under this subsection (d-5) shall
8345	8345	2 provide that the utilities' payment obligations under such
8346	8346	3 contracts shall be reduced if an adjustment is required
8347	8347	4 under subsection (m) of Section 16-108 of the Public
8348	8348	5 Utilities Act.
8349	8349	6 (7) This subsection (d-5) shall become inoperative on
8350	8350	7 January 1, 2028.
8351	8351	8 (d-10) Nuclear Plant Assistance; carbon mitigation
8352	8352	9 credits.
8353	8353	10 (1) The General Assembly finds:
8354	8354	11 (A) The health, welfare, and prosperity of all
8355	8355	12 Illinois citizens require that the State of Illinois act
8356	8356	13 to avoid and not increase carbon emissions from electric
8357	8357	14 generation sources while continuing to ensure affordable,
8358	8358	15 stable, and reliable electricity to all citizens.
8359	8359	16 (B) Absent immediate action by the State to preserve
8360	8360	17 existing carbon-free energy resources, those resources may
8361	8361	18 retire, and the electric generation needs of Illinois'
8362	8362	19 retail customers may be met instead by facilities that
8363	8363	20 emit significant amounts of carbon pollution and other
8364	8364	21 harmful air pollutants at a high social and economic cost
8365	8365	22 until Illinois is able to develop other forms of clean
8366	8366	23 energy.
8367	8367	24 (C) The General Assembly finds that nuclear power
8368	8368	25 generation is necessary for the State's transition to 100%
8369	8369	26 clean energy, and ensuring continued operation of nuclear
8370	8370
8371	8371
8372	8372
8373	8373
8374	8374
8375	8375	SB3997 - 232 - LRB103 43686 LNS 77044 b
8376	8376
8377	8377
8378	8378	SB3997- 233 -LRB103 43686 LNS 77044 b SB3997 - 233 - LRB103 43686 LNS 77044 b
8379	8379	SB3997 - 233 - LRB103 43686 LNS 77044 b
8380	8380	1 plants advances environmental and public health interests
8381	8381	2 through providing carbon-free electricity while reducing
8382	8382	3 the air pollution profile of the Illinois energy
8383	8383	4 generation fleet.
8384	8384	5 (D) The clean energy attributes of nuclear generation
8385	8385	6 facilities support the State in its efforts to achieve
8386	8386	7 100% clean energy.
8387	8387	8 (E) The State currently invests in various forms of
8388	8388	9 clean energy, including, but not limited to, renewable
8389	8389	10 energy, energy efficiency, and low-emission vehicles,
8390	8390	11 among others.
8391	8391	12 (F) The Environmental Protection Agency commissioned
8392	8392	13 an independent audit which provided a detailed assessment
8393	8393	14 of the financial condition of the Illinois nuclear fleet
8394	8394	15 to evaluate its financial viability and whether the
8395	8395	16 environmental benefits of such resources were at risk. The
8396	8396	17 report identified the risk of losing the environmental
8397	8397	18 benefits of several specific nuclear units. The report
8398	8398	19 also identified that the LaSalle County Generating Station
8399	8399	20 will continue to operate through 2026 and therefore is not
8400	8400	21 eligible to participate in the carbon mitigation credit
8401	8401	22 program.
8402	8402	23 (G) Nuclear plants provide carbon-free energy, which
8403	8403	24 helps to avoid many health-related negative impacts for
8404	8404	25 Illinois residents.
8405	8405	26 (H) The procurement of carbon mitigation credits
8406	8406
8407	8407
8408	8408
8409	8409
8410	8410
8411	8411	SB3997 - 233 - LRB103 43686 LNS 77044 b
8412	8412
8413	8413
8414	8414	SB3997- 234 -LRB103 43686 LNS 77044 b SB3997 - 234 - LRB103 43686 LNS 77044 b
8415	8415	SB3997 - 234 - LRB103 43686 LNS 77044 b
8416	8416	1 representing the environmental benefits of carbon-free
8417	8417	2 generation will further the State's efforts at achieving
8418	8418	3 100% clean energy and decarbonizing the electricity sector
8419	8419	4 in a safe, reliable, and affordable manner. Further, the
8420	8420	5 procurement of carbon emission credits will enhance the
8421	8421	6 health and welfare of Illinois residents through decreased
8422	8422	7 reliance on more highly polluting generation.
8423	8423	8 (I) The General Assembly therefore finds it necessary
8424	8424	9 to establish carbon mitigation credits to ensure decreased
8425	8425	10 reliance on more carbon-intensive energy resources, for
8426	8426	11 transitioning to a fully decarbonized electricity sector,
8427	8427	12 and to help ensure health and welfare of the State's
8428	8428	13 residents.
8429	8429	14 (2) As used in this subsection:
8430	8430	15 "Baseline costs" means costs used to establish a customer
8431	8431	16 protection cap that have been evaluated through an independent
8432	8432	17 audit of a carbon-free energy resource conducted by the
8433	8433	18 Environmental Protection Agency that evaluated projected
8434	8434	19 annual costs for operation and maintenance expenses; fully
8435	8435	20 allocated overhead costs, which shall be allocated using the
8436	8436	21 methodology developed by the Institute for Nuclear Power
8437	8437	22 Operations; fuel expenditures; nonfuel capital expenditures;
8438	8438	23 spent fuel expenditures; a return on working capital; the cost
8439	8439	24 of operational and market risks that could be avoided by
8440	8440	25 ceasing operation; and any other costs necessary for continued
8441	8441	26 operations, provided that "necessary" means, for purposes of
8442	8442
8443	8443
8444	8444
8445	8445
8446	8446
8447	8447	SB3997 - 234 - LRB103 43686 LNS 77044 b
8448	8448
8449	8449
8450	8450	SB3997- 235 -LRB103 43686 LNS 77044 b SB3997 - 235 - LRB103 43686 LNS 77044 b
8451	8451	SB3997 - 235 - LRB103 43686 LNS 77044 b
8452	8452	1 this definition, that the costs could reasonably be avoided
8453	8453	2 only by ceasing operations of the carbon-free energy resource.
8454	8454	3 "Carbon mitigation credit" means a tradable credit that
8455	8455	4 represents the carbon emission reduction attributes of one
8456	8456	5 megawatt-hour of energy produced from a carbon-free energy
8457	8457	6 resource.
8458	8458	7 "Carbon-free energy resource" means a generation facility
8459	8459	8 that: (1) is fueled by nuclear power; and (2) is
8460	8460	9 interconnected to PJM Interconnection, LLC.
8461	8461	10 (3) Procurement.
8462	8462	11 (A) Beginning with the delivery year commencing on
8463	8463	12 June 1, 2022, the Agency shall, for electric utilities
8464	8464	13 serving at least 3,000,000 retail customers in the State,
8465	8465	14 seek to procure contracts for no more than approximately
8466	8466	15 54,500,000 cost-effective carbon mitigation credits from
8467	8467	16 carbon-free energy resources because such credits are
8468	8468	17 necessary to support current levels of carbon-free energy
8469	8469	18 generation and ensure the State meets its carbon dioxide
8470	8470	19 emissions reduction goals. The Agency shall not make a
8471	8471	20 partial award of a contract for carbon mitigation credits
8472	8472	21 covering a fractional amount of a carbon-free energy
8473	8473	22 resource's projected output.
8474	8474	23 (B) Each carbon-free energy resource that intends to
8475	8475	24 participate in a procurement shall be required to submit
8476	8476	25 to the Agency the following information for the resource
8477	8477	26 on or before the date established by the Agency:
8478	8478
8479	8479
8480	8480
8481	8481
8482	8482
8483	8483	SB3997 - 235 - LRB103 43686 LNS 77044 b
8484	8484
8485	8485
8486	8486	SB3997- 236 -LRB103 43686 LNS 77044 b SB3997 - 236 - LRB103 43686 LNS 77044 b
8487	8487	SB3997 - 236 - LRB103 43686 LNS 77044 b
8488	8488	1 (i) the in-service date and remaining useful life
8489	8489	2 of the carbon-free energy resource;
8490	8490	3 (ii) the amount of power generated annually for
8491	8491	4 each of the past 10 years, which shall be used to
8492	8492	5 determine the capability of each facility;
8493	8493	6 (iii) a commitment to be reflected in any contract
8494	8494	7 entered into pursuant to this subsection (d-10) to
8495	8495	8 continue operating the carbon-free energy resource at
8496	8496	9 a capacity factor of at least 88% annually on average
8497	8497	10 for the duration of the contract or contracts executed
8498	8498	11 under the procurement held under this subsection
8499	8499	12 (d-10), except in an instance described in
8500	8500	13 subparagraph (E) of paragraph (1) of subsection (d-5)
8501	8501	14 of this Section or made impracticable as a result of
8502	8502	15 compliance with law or regulation;
8503	8503	16 (iv) financial need and the risk of loss of the
8504	8504	17 environmental benefits of such resource, which shall
8505	8505	18 include the following information:
8506	8506	19 (I) the carbon-free energy resource's cost
8507	8507	20 projections, expressed on a per megawatt-hour
8508	8508	21 basis, over the next 5 delivery years, which shall
8509	8509	22 include the following: operation and maintenance
8510	8510	23 expenses; fully allocated overhead costs, which
8511	8511	24 shall be allocated using the methodology developed
8512	8512	25 by the Institute for Nuclear Power Operations;
8513	8513	26 fuel expenditures; nonfuel capital expenditures;
8514	8514
8515	8515
8516	8516
8517	8517
8518	8518
8519	8519	SB3997 - 236 - LRB103 43686 LNS 77044 b
8520	8520
8521	8521
8522	8522	SB3997- 237 -LRB103 43686 LNS 77044 b SB3997 - 237 - LRB103 43686 LNS 77044 b
8523	8523	SB3997 - 237 - LRB103 43686 LNS 77044 b
8524	8524	1 spent fuel expenditures; a return on working
8525	8525	2 capital; the cost of operational and market risks
8526	8526	3 that could be avoided by ceasing operation; and
8527	8527	4 any other costs necessary for continued
8528	8528	5 operations, provided that "necessary" means, for
8529	8529	6 purposes of this subitem (I), that the costs could
8530	8530	7 reasonably be avoided only by ceasing operations
8531	8531	8 of the carbon-free energy resource; and
8532	8532	9 (II) the carbon-free energy resource's revenue
8533	8533	10 projections, including energy, capacity, ancillary
8534	8534	11 services, any other direct State support, known or
8535	8535	12 anticipated federal attribute credits, known or
8536	8536	13 anticipated tax credits, and any other direct
8537	8537	14 federal support.
8538	8538	15 The information described in this subparagraph (B) may
8539	8539	16 be submitted on a confidential basis and shall be treated
8540	8540	17 and maintained by the Agency, the procurement
8541	8541	18 administrator, and the Commission as confidential and
8542	8542	19 proprietary and exempt from disclosure under subparagraphs
8543	8543	20 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
8544	8544	21 Information Act. The Office of the Attorney General shall
8545	8545	22 have access to, and maintain the confidentiality of, such
8546	8546	23 information pursuant to Section 6.5 of the Attorney
8547	8547	24 General Act.
8548	8548	25 (C) The Agency shall solicit bids for the contracts
8549	8549	26 described in this subsection (d-10) from carbon-free
8550	8550
8551	8551
8552	8552
8553	8553
8554	8554
8555	8555	SB3997 - 237 - LRB103 43686 LNS 77044 b
8556	8556
8557	8557
8558	8558	SB3997- 238 -LRB103 43686 LNS 77044 b SB3997 - 238 - LRB103 43686 LNS 77044 b
8559	8559	SB3997 - 238 - LRB103 43686 LNS 77044 b
8560	8560	1 energy resources that have satisfied the requirements of
8561	8561	2 subparagraph (B) of this paragraph (3). The contracts
8562	8562	3 procured pursuant to a procurement event shall reflect,
8563	8563	4 and be subject to, the following terms, requirements, and
8564	8564	5 limitations:
8565	8565	6 (i) Contracts are for delivery of carbon
8566	8566	7 mitigation credits, and are not energy or capacity
8567	8567	8 sales contracts requiring physical delivery. Pursuant
8568	8568	9 to item (iii), contract payments shall fully deduct
8569	8569	10 the value of any monetized federal production tax
8570	8570	11 credits, credits issued pursuant to a federal clean
8571	8571	12 energy standard, and other federal credits if
8572	8572	13 applicable.
8573	8573	14 (ii) Contracts for carbon mitigation credits shall
8574	8574	15 commence with the delivery year beginning on June 1,
8575	8575	16 2022 and shall be for a term of 5 delivery years
8576	8576	17 concluding on May 31, 2027.
8577	8577	18 (iii) The price per carbon mitigation credit to be
8578	8578	19 paid under a contract for a given delivery year shall
8579	8579	20 be equal to an accepted bid price less the sum of:
8580	8580	21 (I) one of the following energy price indices,
8581	8581	22 selected by the bidder at the time of the bid for
8582	8582	23 the term of the contract:
8583	8583	24 (aa) the weighted-average hourly day-ahead
8584	8584	25 price for the applicable delivery year at the
8585	8585	26 busbar of all resources procured pursuant to
8586	8586
8587	8587
8588	8588
8589	8589
8590	8590
8591	8591	SB3997 - 238 - LRB103 43686 LNS 77044 b
8592	8592
8593	8593
8594	8594	SB3997- 239 -LRB103 43686 LNS 77044 b SB3997 - 239 - LRB103 43686 LNS 77044 b
8595	8595	SB3997 - 239 - LRB103 43686 LNS 77044 b
8596	8596	1 this subsection (d-10), weighted by actual
8597	8597	2 production from the resources; or
8598	8598	3 (bb) the projected energy price for the
8599	8599	4 PJM Interconnection, LLC Northern Illinois Hub
8600	8600	5 for the applicable delivery year determined
8601	8601	6 according to subitem (aa) of item (iii) of
8602	8602	7 subparagraph (B) of paragraph (1) of
8603	8603	8 subsection (d-5).
8604	8604	9 (II) the Base Residual Auction Capacity Price
8605	8605	10 for the ComEd zone as determined by PJM
8606	8606	11 Interconnection, LLC, divided by 24 hours per day,
8607	8607	12 for the applicable delivery year for the first 3
8608	8608	13 delivery years, and then any subsequent delivery
8609	8609	14 years unless the PJM Interconnection, LLC applies
8610	8610	15 the Minimum Offer Price Rule to participating
8611	8611	16 carbon-free energy resources because they supply
8612	8612	17 carbon mitigation credits pursuant to this Section
8613	8613	18 at which time, upon notice by the carbon-free
8614	8614	19 energy resource to the Commission and subject to
8615	8615	20 the Commission's confirmation, the value under
8616	8616	21 this subitem shall be zero, as further described
8617	8617	22 in the carbon mitigation credit procurement plan;
8618	8618	23 and
8619	8619	24 (III) any value of monetized federal tax
8620	8620	25 credits, direct payments, or similar subsidy
8621	8621	26 provided to the carbon-free energy resource from
8622	8622
8623	8623
8624	8624
8625	8625
8626	8626
8627	8627	SB3997 - 239 - LRB103 43686 LNS 77044 b
8628	8628
8629	8629
8630	8630	SB3997- 240 -LRB103 43686 LNS 77044 b SB3997 - 240 - LRB103 43686 LNS 77044 b
8631	8631	SB3997 - 240 - LRB103 43686 LNS 77044 b
8632	8632	1 any unit of government that is not already
8633	8633	2 reflected in energy prices.
8634	8634	3 If the price-per-megawatt-hour calculation
8635	8635	4 performed under item (iii) of this subparagraph (C)
8636	8636	5 for a given delivery year results in a net positive
8637	8637	6 value, then the electric utility counterparty to the
8638	8638	7 contract shall multiply such net value by the
8639	8639	8 applicable contract quantity and remit the amount to
8640	8640	9 the supplier.
8641	8641	10 To protect retail customers from retail rate
8642	8642	11 impacts that may arise upon the initiation of carbon
8643	8643	12 policy changes, if the price-per-megawatt-hour
8644	8644	13 calculation performed under item (iii) of this
8645	8645	14 subparagraph (C) for a given delivery year results in
8646	8646	15 a net negative value, then the supplier counterparty
8647	8647	16 to the contract shall multiply such net value by the
8648	8648	17 applicable contract quantity and remit such amount to
8649	8649	18 the electric utility counterparty. The electric
8650	8650	19 utility shall reflect such amounts remitted by
8651	8651	20 suppliers as a credit on its retail customer bills as
8652	8652	21 soon as practicable.
8653	8653	22 (iv) To ensure that retail customers in Northern
8654	8654	23 Illinois do not pay more for carbon mitigation credits
8655	8655	24 than the value such credits provide, and
8656	8656	25 notwithstanding the provisions of this subsection
8657	8657	26 (d-10), the Agency shall not accept bids for contracts
8658	8658
8659	8659
8660	8660
8661	8661
8662	8662
8663	8663	SB3997 - 240 - LRB103 43686 LNS 77044 b
8664	8664
8665	8665
8666	8666	SB3997- 241 -LRB103 43686 LNS 77044 b SB3997 - 241 - LRB103 43686 LNS 77044 b
8667	8667	SB3997 - 241 - LRB103 43686 LNS 77044 b
8668	8668	1 that exceed a customer protection cap equal to the
8669	8669	2 baseline costs of carbon-free energy resources.
8670	8670	3 The baseline costs for the applicable year shall
8671	8671	4 be the following:
8672	8672	5 (I) For the delivery year beginning June 1,
8673	8673	6 2022, the baseline costs shall be an amount equal
8674	8674	7 to $30.30 per megawatt-hour.
8675	8675	8 (II) For the delivery year beginning June 1,
8676	8676	9 2023, the baseline costs shall be an amount equal
8677	8677	10 to $32.50 per megawatt-hour.
8678	8678	11 (III) For the delivery year beginning June 1,
8679	8679	12 2024, the baseline costs shall be an amount equal
8680	8680	13 to $33.43 per megawatt-hour.
8681	8681	14 (IV) For the delivery year beginning June 1,
8682	8682	15 2025, the baseline costs shall be an amount equal
8683	8683	16 to $33.50 per megawatt-hour.
8684	8684	17 (V) For the delivery year beginning June 1,
8685	8685	18 2026, the baseline costs shall be an amount equal
8686	8686	19 to $34.50 per megawatt-hour.
8687	8687	20 An Environmental Protection Agency consultant
8688	8688	21 forecast, included in a report issued April 14, 2021,
8689	8689	22 projects that a carbon-free energy resource has the
8690	8690	23 opportunity to earn on average approximately $30.28
8691	8691	24 per megawatt-hour, for the sale of energy and capacity
8692	8692	25 during the time period between 2022 and 2027.
8693	8693	26 Therefore, the sale of carbon mitigation credits
8694	8694
8695	8695
8696	8696
8697	8697
8698	8698
8699	8699	SB3997 - 241 - LRB103 43686 LNS 77044 b
8700	8700
8701	8701
8702	8702	SB3997- 242 -LRB103 43686 LNS 77044 b SB3997 - 242 - LRB103 43686 LNS 77044 b
8703	8703	SB3997 - 242 - LRB103 43686 LNS 77044 b
8704	8704	1 provides the opportunity to receive an additional
8705	8705	2 amount per megawatt-hour in addition to the projected
8706	8706	3 prices for energy and capacity.
8707	8707	4 Although actual energy and capacity prices may
8708	8708	5 vary from year-to-year, the General Assembly finds
8709	8709	6 that this customer protection cap will help ensure
8710	8710	7 that the cost of carbon mitigation credits will be
8711	8711	8 less than its value, based upon the social cost of
8712	8712	9 carbon identified in the Technical Support Document
8713	8713	10 issued in February 2021 by the U.S. Interagency
8714	8714	11 Working Group on Social Cost of Greenhouse Gases and
8715	8715	12 the PJM Interconnection, LLC carbon dioxide marginal
8716	8716	13 emission rate for 2020, and that a carbon-free energy
8717	8717	14 resource receiving payment for carbon mitigation
8718	8718	15 credits receives no more than necessary to keep those
8719	8719	16 units in operation.
8720	8720	17 (D) No later than 7 days after the effective date of
8721	8721	18 this amendatory Act of the 102nd General Assembly, the
8722	8722	19 Agency shall publish its proposed carbon mitigation credit
8723	8723	20 procurement plan. The Plan shall provide that winning bids
8724	8724	21 shall be selected by taking into consideration which
8725	8725	22 resources best match public interest criteria that
8726	8726	23 include, but are not limited to, minimizing carbon dioxide
8727	8727	24 emissions that result from electricity consumed in
8728	8728	25 Illinois and minimizing sulfur dioxide, nitrogen oxide,
8729	8729	26 and particulate matter emissions that adversely affect the
8730	8730
8731	8731
8732	8732
8733	8733
8734	8734
8735	8735	SB3997 - 242 - LRB103 43686 LNS 77044 b
8736	8736
8737	8737
8738	8738	SB3997- 243 -LRB103 43686 LNS 77044 b SB3997 - 243 - LRB103 43686 LNS 77044 b
8739	8739	SB3997 - 243 - LRB103 43686 LNS 77044 b
8740	8740	1 citizens of this State. The selection of winning bids
8741	8741	2 shall also take into account the incremental environmental
8742	8742	3 benefits resulting from the procurement or procurements,
8743	8743	4 such as any existing environmental benefits that are
8744	8744	5 preserved by a procurement held under this subsection
8745	8745	6 (d-10) and would cease to exist if the procurement were
8746	8746	7 not held, including the preservation of carbon-free energy
8747	8747	8 resources. For those bidders having the same public
8748	8748	9 interest criteria score, the relative ranking of such
8749	8749	10 bidders shall be determined by price. The Plan shall
8750	8750	11 describe in detail how each public interest factor shall
8751	8751	12 be considered and weighted in the bid selection process to
8752	8752	13 ensure that the public interest criteria are applied to
8753	8753	14 the procurement. The Plan shall, to the extent practical
8754	8754	15 and permissible by federal law, ensure that successful
8755	8755	16 bidders make commercially reasonable efforts to apply for
8756	8756	17 federal tax credits, direct payments, or similar subsidy
8757	8757	18 programs that support carbon-free generation and for which
8758	8758	19 the successful bidder is eligible. Upon publishing of the
8759	8759	20 carbon mitigation credit procurement plan, copies of the
8760	8760	21 plan shall be posted and made publicly available on the
8761	8761	22 Agency's website. All interested parties shall have 7 days
8762	8762	23 following the date of posting to provide comment to the
8763	8763	24 Agency on the plan. All comments shall be posted to the
8764	8764	25 Agency's website. Following the end of the comment period,
8765	8765	26 but no more than 19 days later than the effective date of
8766	8766
8767	8767
8768	8768
8769	8769
8770	8770
8771	8771	SB3997 - 243 - LRB103 43686 LNS 77044 b
8772	8772
8773	8773
8774	8774	SB3997- 244 -LRB103 43686 LNS 77044 b SB3997 - 244 - LRB103 43686 LNS 77044 b
8775	8775	SB3997 - 244 - LRB103 43686 LNS 77044 b
8776	8776	1 this amendatory Act of the 102nd General Assembly, the
8777	8777	2 Agency shall revise the plan as necessary based on the
8778	8778	3 comments received and file its carbon mitigation credit
8779	8779	4 procurement plan with the Commission.
8780	8780	5 (E) If the Commission determines that the plan is
8781	8781	6 likely to result in the procurement of cost-effective
8782	8782	7 carbon mitigation credits, then the Commission shall,
8783	8783	8 after notice and hearing and opportunity for comment, but
8784	8784	9 no later than 42 days after the Agency filed the plan,
8785	8785	10 approve the plan or approve it with modification. For
8786	8786	11 purposes of this subsection (d-10), "cost-effective" means
8787	8787	12 carbon mitigation credits that are procured from
8788	8788	13 carbon-free energy resources at prices that are within the
8789	8789	14 limits specified in this paragraph (3). As part of the
8790	8790	15 Commission's review and acceptance or rejection of the
8791	8791	16 procurement results, the Commission shall, in its public
8792	8792	17 notice of successful bidders:
8793	8793	18 (i) identify how the selected carbon-free energy
8794	8794	19 resources satisfy the public interest criteria
8795	8795	20 described in this paragraph (3) of minimizing carbon
8796	8796	21 dioxide emissions that result from electricity
8797	8797	22 consumed in Illinois and minimizing sulfur dioxide,
8798	8798	23 nitrogen oxide, and particulate matter emissions that
8799	8799	24 adversely affect the citizens of this State;
8800	8800	25 (ii) specifically address how the selection of
8801	8801	26 carbon-free energy resources takes into account the
8802	8802
8803	8803
8804	8804
8805	8805
8806	8806
8807	8807	SB3997 - 244 - LRB103 43686 LNS 77044 b
8808	8808
8809	8809
8810	8810	SB3997- 245 -LRB103 43686 LNS 77044 b SB3997 - 245 - LRB103 43686 LNS 77044 b
8811	8811	SB3997 - 245 - LRB103 43686 LNS 77044 b
8812	8812	1 incremental environmental benefits resulting from the
8813	8813	2 procurement, including any existing environmental
8814	8814	3 benefits that are preserved by the procurements held
8815	8815	4 under this amendatory Act of the 102nd General
8816	8816	5 Assembly and would have ceased to exist if the
8817	8817	6 procurements had not been held, such as the
8818	8818	7 preservation of carbon-free energy resources;
8819	8819	8 (iii) quantify the environmental benefit of
8820	8820	9 preserving the carbon-free energy resources procured
8821	8821	10 pursuant to this subsection (d-10), including the
8822	8822	11 following:
8823	8823	12 (I) an assessment value of avoided greenhouse
8824	8824	13 gas emissions measured as the product of the
8825	8825	14 carbon-free energy resources' output over the
8826	8826	15 contract term, using generally accepted
8827	8827	16 methodologies for the valuation of avoided
8828	8828	17 emissions; and
8829	8829	18 (II) an assessment of costs of replacement
8830	8830	19 with other carbon-free energy resources and
8831	8831	20 renewable energy resources, including wind and
8832	8832	21 photovoltaic generation, based upon an assessment
8833	8833	22 of the prices paid for renewable energy credits
8834	8834	23 through programs and procurements conducted
8835	8835	24 pursuant to subsection (c) of Section 1-75 of this
8836	8836	25 Act, and the additional storage necessary to
8837	8837	26 produce the same or similar capability of matching
8838	8838
8839	8839
8840	8840
8841	8841
8842	8842
8843	8843	SB3997 - 245 - LRB103 43686 LNS 77044 b
8844	8844
8845	8845
8846	8846	SB3997- 246 -LRB103 43686 LNS 77044 b SB3997 - 246 - LRB103 43686 LNS 77044 b
8847	8847	SB3997 - 246 - LRB103 43686 LNS 77044 b
8848	8848	1 customer usage patterns.
8849	8849	2 (F) The procurements described in this paragraph (3),
8850	8850	3 including, but not limited to, the execution of all
8851	8851	4 contracts procured, shall be completed no later than
8852	8852	5 December 3, 2021. The procurement and plan approval
8853	8853	6 processes required by this paragraph (3) shall be
8854	8854	7 conducted in conjunction with the procurement and plan
8855	8855	8 approval processes required by Section 16-111.5 of the
8856	8856	9 Public Utilities Act, to the extent practicable. However,
8857	8857	10 the Agency and Commission may, as appropriate, modify the
8858	8858	11 various dates and timelines under this subparagraph and
8859	8859	12 subparagraphs (D) and (E) of this paragraph (3) to meet
8860	8860	13 the December 3, 2021 contract execution deadline.
8861	8861	14 Following the completion of such procurements, and
8862	8862	15 consistent with this paragraph (3), the Agency shall
8863	8863	16 calculate the payments to be made under each contract in a
8864	8864	17 timely fashion.
8865	8865	18 (F-1) Costs incurred by the electric utility pursuant
8866	8866	19 to a contract authorized by this subsection (d-10) shall
8867	8867	20 be deemed prudently incurred and reasonable in amount, and
8868	8868	21 the electric utility shall be entitled to full cost
8869	8869	22 recovery pursuant to a tariff or tariffs filed with the
8870	8870	23 Commission.
8871	8871	24 (G) The counterparty electric utility shall retire all
8872	8872	25 carbon mitigation credits used to comply with the
8873	8873	26 requirements of this subsection (d-10).
8874	8874
8875	8875
8876	8876
8877	8877
8878	8878
8879	8879	SB3997 - 246 - LRB103 43686 LNS 77044 b
8880	8880
8881	8881
8882	8882	SB3997- 247 -LRB103 43686 LNS 77044 b SB3997 - 247 - LRB103 43686 LNS 77044 b
8883	8883	SB3997 - 247 - LRB103 43686 LNS 77044 b
8884	8884	1 (H) If a carbon-free energy resource is sold to
8885	8885	2 another owner, the rights, obligations, and commitments
8886	8886	3 under this subsection (d-10) shall continue to the
8887	8887	4 subsequent owner.
8888	8888	5 (I) This subsection (d-10) shall become inoperative on
8889	8889	6 January 1, 2028.
8890	8890	7 (e) The draft procurement plans are subject to public
8891	8891	8 comment, as required by Section 16-111.5 of the Public
8892	8892	9 Utilities Act.
8893	8893	10 (f) The Agency shall submit the final procurement plan to
8894	8894	11 the Commission. The Agency shall revise a procurement plan if
8895	8895	12 the Commission determines that it does not meet the standards
8896	8896	13 set forth in Section 16-111.5 of the Public Utilities Act.
8897	8897	14 (g) The Agency shall assess fees to each affected utility
8898	8898	15 to recover the costs incurred in preparation of the annual
8899	8899	16 procurement plan for the utility.
8900	8900	17 (h) The Agency shall assess fees to each bidder to recover
8901	8901	18 the costs incurred in connection with a competitive
8902	8902	19 procurement process.
8903	8903	20 (i) A renewable energy credit, carbon emission credit,
8904	8904	21 zero emission credit, or carbon mitigation credit can only be
8905	8905	22 used once to comply with a single portfolio or other standard
8906	8906	23 as set forth in subsection (c), subsection (d), or subsection
8907	8907	24 (d-5) of this Section, respectively. A renewable energy
8908	8908	25 credit, carbon emission credit, zero emission credit, or
8909	8909	26 carbon mitigation credit cannot be used to satisfy the
8910	8910
8911	8911
8912	8912
8913	8913
8914	8914
8915	8915	SB3997 - 247 - LRB103 43686 LNS 77044 b
8916	8916
8917	8917
8918	8918	SB3997- 248 -LRB103 43686 LNS 77044 b SB3997 - 248 - LRB103 43686 LNS 77044 b
8919	8919	SB3997 - 248 - LRB103 43686 LNS 77044 b
8920	8920	1 requirements of more than one standard. If more than one type
8921	8921	2 of credit is issued for the same megawatt hour of energy, only
8922	8922	3 one credit can be used to satisfy the requirements of a single
8923	8923	4 standard. After such use, the credit must be retired together
8924	8924	5 with any other credits issued for the same megawatt hour of
8925	8925	6 energy.
8926	8926	7 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
8927	8927	8 103-580, eff. 12-8-23.)
8928	8928	9 Section 15. The Public Utilities Act is amended by
8929	8929	10 changing Sections 8-103B, 16-107.6, 16-108, 16-111.5, and
8930	8930	11 16-135 as follows:
8931	8931	12 (220 ILCS 5/8-103B)
8932	8932	13 Sec. 8-103B. Energy efficiency and demand-response
8933	8933	14 measures.
8934	8934	15 (a) It is the policy of the State that electric utilities
8935	8935	16 are required to use cost-effective energy efficiency and
8936	8936	17 demand-response measures to reduce delivery load. Requiring
8937	8937	18 investment in cost-effective energy efficiency and
8938	8938	19 demand-response measures will reduce direct and indirect costs
8939	8939	20 to consumers by decreasing environmental impacts and by
8940	8940	21 avoiding or delaying the need for new generation,
8941	8941	22 transmission, and distribution infrastructure. It serves the
8942	8942	23 public interest to allow electric utilities to recover costs
8943	8943	24 for reasonably and prudently incurred expenditures for energy
8944	8944
8945	8945
8946	8946
8947	8947
8948	8948
8949	8949	SB3997 - 248 - LRB103 43686 LNS 77044 b
8950	8950
8951	8951
8952	8952	SB3997- 249 -LRB103 43686 LNS 77044 b SB3997 - 249 - LRB103 43686 LNS 77044 b
8953	8953	SB3997 - 249 - LRB103 43686 LNS 77044 b
8954	8954	1 efficiency and demand-response measures. As used in this
8955	8955	2 Section, "cost-effective" means that the measures satisfy the
8956	8956	3 total resource cost test. The low-income measures described in
8957	8957	4 subsection (c) of this Section shall not be required to meet
8958	8958	5 the total resource cost test. For purposes of this Section,
8959	8959	6 the terms "energy-efficiency", "demand-response", "electric
8960	8960	7 utility", and "total resource cost test" have the meanings set
8961	8961	8 forth in the Illinois Power Agency Act. "Black, indigenous,
8962	8962	9 and people of color" and "BIPOC" means people who are members
8963	8963	10 of the groups described in subparagraphs (a) through (e) of
8964	8964	11 paragraph (A) of subsection (1) of Section 2 of the Business
8965	8965	12 Enterprise for Minorities, Women, and Persons with
8966	8966	13 Disabilities Act.
8967	8967	14 (a-5) This Section applies to electric utilities serving
8968	8968	15 more than 500,000 retail customers in the State for those
8969	8969	16 multi-year plans commencing after December 31, 2017.
8970	8970	17 (b) For purposes of this Section, through calendar year
8971	8971	18 2026, electric utilities subject to this Section that serve
8972	8972	19 more than 3,000,000 retail customers in the State shall be
8973	8973	20 deemed to have achieved a cumulative persisting annual savings
8974	8974	21 of 6.6% from energy efficiency measures and programs
8975	8975	22 implemented during the period beginning January 1, 2012 and
8976	8976	23 ending December 31, 2017, which percent is based on the deemed
8977	8977	24 average weather normalized sales of electric power and energy
8978	8978	25 during calendar years 2014, 2015, and 2016 of 88,000,000 MWhs.
8979	8979	26 For the purposes of this subsection (b) and subsection (b-5),
8980	8980
8981	8981
8982	8982
8983	8983
8984	8984
8985	8985	SB3997 - 249 - LRB103 43686 LNS 77044 b
8986	8986
8987	8987
8988	8988	SB3997- 250 -LRB103 43686 LNS 77044 b SB3997 - 250 - LRB103 43686 LNS 77044 b
8989	8989	SB3997 - 250 - LRB103 43686 LNS 77044 b
8990	8990	1 the 88,000,000 MWhs of deemed electric power and energy sales
8991	8991	2 shall be reduced by the number of MWhs equal to the sum of the
8992	8992	3 annual consumption of customers that have opted out of
8993	8993	4 subsections (a) through (j) of this Section under paragraph
8994	8994	5 (1) of subsection (l) of this Section, as averaged across the
8995	8995	6 calendar years 2014, 2015, and 2016. After 2017, the deemed
8996	8996	7 value of cumulative persisting annual savings from energy
8997	8997	8 efficiency measures and programs implemented during the period
8998	8998	9 beginning January 1, 2012 and ending December 31, 2017, shall
8999	8999	10 be reduced each year, as follows, and the applicable value
9000	9000	11 shall be applied to and count toward the utility's achievement
9001	9001	12 of the cumulative persisting annual savings goals set forth in
9002	9002	13 subsection (b-5):
9003	9003	14 (1) 5.8% deemed cumulative persisting annual savings
9004	9004	15 for the year ending December 31, 2018;
9005	9005	16 (2) 5.2% deemed cumulative persisting annual savings
9006	9006	17 for the year ending December 31, 2019;
9007	9007	18 (3) 4.5% deemed cumulative persisting annual savings
9008	9008	19 for the year ending December 31, 2020;
9009	9009	20 (4) 4.0% deemed cumulative persisting annual savings
9010	9010	21 for the year ending December 31, 2021;
9011	9011	22 (5) 3.5% deemed cumulative persisting annual savings
9012	9012	23 for the year ending December 31, 2022;
9013	9013	24 (6) 3.1% deemed cumulative persisting annual savings
9014	9014	25 for the year ending December 31, 2023;
9015	9015	26 (7) 2.8% deemed cumulative persisting annual savings
9016	9016
9017	9017
9018	9018
9019	9019
9020	9020
9021	9021	SB3997 - 250 - LRB103 43686 LNS 77044 b
9022	9022
9023	9023
9024	9024	SB3997- 251 -LRB103 43686 LNS 77044 b SB3997 - 251 - LRB103 43686 LNS 77044 b
9025	9025	SB3997 - 251 - LRB103 43686 LNS 77044 b
9026	9026	1 for the year ending December 31, 2024;
9027	9027	2 (8) 2.5% deemed cumulative persisting annual savings
9028	9028	3 for the year ending December 31, 2025; and
9029	9029	4 (9) 2.3% deemed cumulative persisting annual savings
9030	9030	5 for the year ending December 31, 2026. ;
9031	9031	6 (10) 2.1% deemed cumulative persisting annual savings
9032	9032	7 for the year ending December 31, 2027;
9033	9033	8 (11) 1.8% deemed cumulative persisting annual savings
9034	9034	9 for the year ending December 31, 2028;
9035	9035	10 (12) 1.7% deemed cumulative persisting annual savings
9036	9036	11 for the year ending December 31, 2029;
9037	9037	12 (13) 1.5% deemed cumulative persisting annual savings
9038	9038	13 for the year ending December 31, 2030;
9039	9039	14 (14) 1.3% deemed cumulative persisting annual savings
9040	9040	15 for the year ending December 31, 2031;
9041	9041	16 (15) 1.1% deemed cumulative persisting annual savings
9042	9042	17 for the year ending December 31, 2032;
9043	9043	18 (16) 0.9% deemed cumulative persisting annual savings
9044	9044	19 for the year ending December 31, 2033;
9045	9045	20 (17) 0.7% deemed cumulative persisting annual savings
9046	9046	21 for the year ending December 31, 2034;
9047	9047	22 (18) 0.5% deemed cumulative persisting annual savings
9048	9048	23 for the year ending December 31, 2035;
9049	9049	24 (19) 0.4% deemed cumulative persisting annual savings
9050	9050	25 for the year ending December 31, 2036;
9051	9051	26 (20) 0.3% deemed cumulative persisting annual savings
9052	9052
9053	9053
9054	9054
9055	9055
9056	9056
9057	9057	SB3997 - 251 - LRB103 43686 LNS 77044 b
9058	9058
9059	9059
9060	9060	SB3997- 252 -LRB103 43686 LNS 77044 b SB3997 - 252 - LRB103 43686 LNS 77044 b
9061	9061	SB3997 - 252 - LRB103 43686 LNS 77044 b
9062	9062	1 for the year ending December 31, 2037;
9063	9063	2 (21) 0.2% deemed cumulative persisting annual savings
9064	9064	3 for the year ending December 31, 2038;
9065	9065	4 (22) 0.1% deemed cumulative persisting annual savings
9066	9066	5 for the year ending December 31, 2039; and
9067	9067	6 (23) 0.0% deemed cumulative persisting annual savings
9068	9068	7 for the year ending December 31, 2040 and all subsequent
9069	9069	8 years.
9070	9070	9 For purposes of this Section, "cumulative persisting
9071	9071	10 annual savings" means the total electric energy savings in a
9072	9072	11 given year from measures installed in that year or in previous
9073	9073	12 years, but no earlier than January 1, 2012, that are still
9074	9074	13 operational and providing savings in that year because the
9075	9075	14 measures have not yet reached the end of their useful lives.
9076	9076	15 (b-5) Beginning in 2018 and through calendar year 2026,
9077	9077	16 electric utilities subject to this Section that serve more
9078	9078	17 than 3,000,000 retail customers in the State shall achieve the
9079	9079	18 following cumulative persisting annual savings goals, as
9080	9080	19 modified by subsection (f) of this Section and as compared to
9081	9081	20 the deemed baseline of 88,000,000 MWhs of electric power and
9082	9082	21 energy sales set forth in subsection (b), as reduced by the
9083	9083	22 number of MWhs equal to the sum of the annual consumption of
9084	9084	23 customers that have opted out of subsections (a) through (j)
9085	9085	24 of this Section under paragraph (1) of subsection (l) of this
9086	9086	25 Section as averaged across the calendar years 2014, 2015, and
9087	9087	26 2016, through the implementation of energy efficiency measures
9088	9088
9089	9089
9090	9090
9091	9091
9092	9092
9093	9093	SB3997 - 252 - LRB103 43686 LNS 77044 b
9094	9094
9095	9095
9096	9096	SB3997- 253 -LRB103 43686 LNS 77044 b SB3997 - 253 - LRB103 43686 LNS 77044 b
9097	9097	SB3997 - 253 - LRB103 43686 LNS 77044 b
9098	9098	1 during the applicable year and in prior years, but no earlier
9099	9099	2 than January 1, 2012:
9100	9100	3 (1) 7.8% cumulative persisting annual savings for the
9101	9101	4 year ending December 31, 2018;
9102	9102	5 (2) 9.1% cumulative persisting annual savings for the
9103	9103	6 year ending December 31, 2019;
9104	9104	7 (3) 10.4% cumulative persisting annual savings for the
9105	9105	8 year ending December 31, 2020;
9106	9106	9 (4) 11.8% cumulative persisting annual savings for the
9107	9107	10 year ending December 31, 2021;
9108	9108	11 (5) 13.1% cumulative persisting annual savings for the
9109	9109	12 year ending December 31, 2022;
9110	9110	13 (6) 14.4% cumulative persisting annual savings for the
9111	9111	14 year ending December 31, 2023;
9112	9112	15 (7) 15.7% cumulative persisting annual savings for the
9113	9113	16 year ending December 31, 2024;
9114	9114	17 (8) 17% cumulative persisting annual savings for the
9115	9115	18 year ending December 31, 2025; and
9116	9116	19 (9) 17.9% cumulative persisting annual savings for the
9117	9117	20 year ending December 31, 2026. ;
9118	9118	21 (10) 18.8% cumulative persisting annual savings for
9119	9119	22 the year ending December 31, 2027;
9120	9120	23 (11) 19.7% cumulative persisting annual savings for
9121	9121	24 the year ending December 31, 2028;
9122	9122	25 (12) 20.6% cumulative persisting annual savings for
9123	9123	26 the year ending December 31, 2029; and
9124	9124
9125	9125
9126	9126
9127	9127
9128	9128
9129	9129	SB3997 - 253 - LRB103 43686 LNS 77044 b
9130	9130
9131	9131
9132	9132	SB3997- 254 -LRB103 43686 LNS 77044 b SB3997 - 254 - LRB103 43686 LNS 77044 b
9133	9133	SB3997 - 254 - LRB103 43686 LNS 77044 b
9134	9134	1 (13) 21.5% cumulative persisting annual savings for
9135	9135	2 the year ending December 31, 2030.
9136	9136	3 No later than December 31, 2021, the Illinois Commerce
9137	9137	4 Commission shall establish additional cumulative persisting
9138	9138	5 annual savings goals for the years 2031 through 2035. No later
9139	9139	6 than December 31, 2024, the Illinois Commerce Commission shall
9140	9140	7 establish additional cumulative persisting annual savings
9141	9141	8 goals for the years 2036 through 2040. The Commission shall
9142	9142	9 also establish additional cumulative persisting annual savings
9143	9143	10 goals every 5 years thereafter to ensure that utilities always
9144	9144	11 have goals that extend at least 11 years into the future. The
9145	9145	12 cumulative persisting annual savings goals beyond the year
9146	9146	13 2030 shall increase by 0.9 percentage points per year, absent
9147	9147	14 a Commission decision to initiate a proceeding to consider
9148	9148	15 establishing goals that increase by more or less than that
9149	9149	16 amount. Such a proceeding must be conducted in accordance with
9150	9150	17 the procedures described in subsection (f) of this Section. If
9151	9151	18 such a proceeding is initiated, the cumulative persisting
9152	9152	19 annual savings goals established by the Commission through
9153	9153	20 that proceeding shall reflect the Commission's best estimate
9154	9154	21 of the maximum amount of additional savings that are forecast
9155	9155	22 to be cost-effectively achievable unless such best estimates
9156	9156	23 would result in goals that represent less than 0.5 percentage
9157	9157	24 point annual increases in total cumulative persisting annual
9158	9158	25 savings. The Commission may only establish goals that
9159	9159	26 represent less than 0.5 percentage point annual increases in
9160	9160
9161	9161
9162	9162
9163	9163
9164	9164
9165	9165	SB3997 - 254 - LRB103 43686 LNS 77044 b
9166	9166
9167	9167
9168	9168	SB3997- 255 -LRB103 43686 LNS 77044 b SB3997 - 255 - LRB103 43686 LNS 77044 b
9169	9169	SB3997 - 255 - LRB103 43686 LNS 77044 b
9170	9170	1 cumulative persisting annual savings if it can demonstrate,
9171	9171	2 based on clear and convincing evidence and through independent
9172	9172	3 analysis, that 0.5 percentage point increases are not
9173	9173	4 cost-effectively achievable. The Commission shall inform its
9174	9174	5 decision based on an energy efficiency potential study that
9175	9175	6 conforms to the requirements of this Section.
9176	9176	7 (b-10) For purposes of this Section, through calendar year
9177	9177	8 2026, electric utilities subject to this Section that serve
9178	9178	9 less than 3,000,000 retail customers but more than 500,000
9179	9179	10 retail customers in the State shall be deemed to have achieved
9180	9180	11 a cumulative persisting annual savings of 6.6% from energy
9181	9181	12 efficiency measures and programs implemented during the period
9182	9182	13 beginning January 1, 2012 and ending December 31, 2017, which
9183	9183	14 is based on the deemed average weather normalized sales of
9184	9184	15 electric power and energy during calendar years 2014, 2015,
9185	9185	16 and 2016 of 36,900,000 MWhs. For the purposes of this
9186	9186	17 subsection (b-10) and subsection (b-15), the 36,900,000 MWhs
9187	9187	18 of deemed electric power and energy sales shall be reduced by
9188	9188	19 the number of MWhs equal to the sum of the annual consumption
9189	9189	20 of customers that have opted out of subsections (a) through
9190	9190	21 (j) of this Section under paragraph (1) of subsection (l) of
9191	9191	22 this Section, as averaged across the calendar years 2014,
9192	9192	23 2015, and 2016. After 2017, the deemed value of cumulative
9193	9193	24 persisting annual savings from energy efficiency measures and
9194	9194	25 programs implemented during the period beginning January 1,
9195	9195	26 2012 and ending December 31, 2017, shall be reduced each year,
9196	9196
9197	9197
9198	9198
9199	9199
9200	9200
9201	9201	SB3997 - 255 - LRB103 43686 LNS 77044 b
9202	9202
9203	9203
9204	9204	SB3997- 256 -LRB103 43686 LNS 77044 b SB3997 - 256 - LRB103 43686 LNS 77044 b
9205	9205	SB3997 - 256 - LRB103 43686 LNS 77044 b
9206	9206	1 as follows, and the applicable value shall be applied to and
9207	9207	2 count toward the utility's achievement of the cumulative
9208	9208	3 persisting annual savings goals set forth in subsection
9209	9209	4 (b-15):
9210	9210	5 (1) 5.8% deemed cumulative persisting annual savings
9211	9211	6 for the year ending December 31, 2018;
9212	9212	7 (2) 5.2% deemed cumulative persisting annual savings
9213	9213	8 for the year ending December 31, 2019;
9214	9214	9 (3) 4.5% deemed cumulative persisting annual savings
9215	9215	10 for the year ending December 31, 2020;
9216	9216	11 (4) 4.0% deemed cumulative persisting annual savings
9217	9217	12 for the year ending December 31, 2021;
9218	9218	13 (5) 3.5% deemed cumulative persisting annual savings
9219	9219	14 for the year ending December 31, 2022;
9220	9220	15 (6) 3.1% deemed cumulative persisting annual savings
9221	9221	16 for the year ending December 31, 2023;
9222	9222	17 (7) 2.8% deemed cumulative persisting annual savings
9223	9223	18 for the year ending December 31, 2024;
9224	9224	19 (8) 2.5% deemed cumulative persisting annual savings
9225	9225	20 for the year ending December 31, 2025; and
9226	9226	21 (9) 2.3% deemed cumulative persisting annual savings
9227	9227	22 for the year ending December 31, 2026. ;
9228	9228	23 (10) 2.1% deemed cumulative persisting annual savings
9229	9229	24 for the year ending December 31, 2027;
9230	9230	25 (11) 1.8% deemed cumulative persisting annual savings
9231	9231	26 for the year ending December 31, 2028;
9232	9232
9233	9233
9234	9234
9235	9235
9236	9236
9237	9237	SB3997 - 256 - LRB103 43686 LNS 77044 b
9238	9238
9239	9239
9240	9240	SB3997- 257 -LRB103 43686 LNS 77044 b SB3997 - 257 - LRB103 43686 LNS 77044 b
9241	9241	SB3997 - 257 - LRB103 43686 LNS 77044 b
9242	9242	1 (12) 1.7% deemed cumulative persisting annual savings
9243	9243	2 for the year ending December 31, 2029;
9244	9244	3 (13) 1.5% deemed cumulative persisting annual savings
9245	9245	4 for the year ending December 31, 2030;
9246	9246	5 (14) 1.3% deemed cumulative persisting annual savings
9247	9247	6 for the year ending December 31, 2031;
9248	9248	7 (15) 1.1% deemed cumulative persisting annual savings
9249	9249	8 for the year ending December 31, 2032;
9250	9250	9 (16) 0.9% deemed cumulative persisting annual savings
9251	9251	10 for the year ending December 31, 2033;
9252	9252	11 (17) 0.7% deemed cumulative persisting annual savings
9253	9253	12 for the year ending December 31, 2034;
9254	9254	13 (18) 0.5% deemed cumulative persisting annual savings
9255	9255	14 for the year ending December 31, 2035;
9256	9256	15 (19) 0.4% deemed cumulative persisting annual savings
9257	9257	16 for the year ending December 31, 2036;
9258	9258	17 (20) 0.3% deemed cumulative persisting annual savings
9259	9259	18 for the year ending December 31, 2037;
9260	9260	19 (21) 0.2% deemed cumulative persisting annual savings
9261	9261	20 for the year ending December 31, 2038;
9262	9262	21 (22) 0.1% deemed cumulative persisting annual savings
9263	9263	22 for the year ending December 31, 2039; and
9264	9264	23 (23) 0.0% deemed cumulative persisting annual savings
9265	9265	24 for the year ending December 31, 2040 and all subsequent
9266	9266	25 years.
9267	9267	26 (b-15) Beginning in 2018 and through calendar year 2026,
9268	9268
9269	9269
9270	9270
9271	9271
9272	9272
9273	9273	SB3997 - 257 - LRB103 43686 LNS 77044 b
9274	9274
9275	9275
9276	9276	SB3997- 258 -LRB103 43686 LNS 77044 b SB3997 - 258 - LRB103 43686 LNS 77044 b
9277	9277	SB3997 - 258 - LRB103 43686 LNS 77044 b
9278	9278	1 electric utilities subject to this Section that serve less
9279	9279	2 than 3,000,000 retail customers but more than 500,000 retail
9280	9280	3 customers in the State shall achieve the following cumulative
9281	9281	4 persisting annual savings goals, as modified by subsection
9282	9282	5 (b-20) and subsection (f) of this Section and as compared to
9283	9283	6 the deemed baseline as reduced by the number of MWhs equal to
9284	9284	7 the sum of the annual consumption of customers that have opted
9285	9285	8 out of subsections (a) through (j) of this Section under
9286	9286	9 paragraph (1) of subsection (l) of this Section as averaged
9287	9287	10 across the calendar years 2014, 2015, and 2016, through the
9288	9288	11 implementation of energy efficiency measures during the
9289	9289	12 applicable year and in prior years, but no earlier than
9290	9290	13 January 1, 2012:
9291	9291	14 (1) 7.4% cumulative persisting annual savings for the
9292	9292	15 year ending December 31, 2018;
9293	9293	16 (2) 8.2% cumulative persisting annual savings for the
9294	9294	17 year ending December 31, 2019;
9295	9295	18 (3) 9.0% cumulative persisting annual savings for the
9296	9296	19 year ending December 31, 2020;
9297	9297	20 (4) 9.8% cumulative persisting annual savings for the
9298	9298	21 year ending December 31, 2021;
9299	9299	22 (5) 10.6% cumulative persisting annual savings for the
9300	9300	23 year ending December 31, 2022;
9301	9301	24 (6) 11.4% cumulative persisting annual savings for the
9302	9302	25 year ending December 31, 2023;
9303	9303	26 (7) 12.2% cumulative persisting annual savings for the
9304	9304
9305	9305
9306	9306
9307	9307
9308	9308
9309	9309	SB3997 - 258 - LRB103 43686 LNS 77044 b
9310	9310
9311	9311
9312	9312	SB3997- 259 -LRB103 43686 LNS 77044 b SB3997 - 259 - LRB103 43686 LNS 77044 b
9313	9313	SB3997 - 259 - LRB103 43686 LNS 77044 b
9314	9314	1 year ending December 31, 2024;
9315	9315	2 (8) 13% cumulative persisting annual savings for the
9316	9316	3 year ending December 31, 2025; and
9317	9317	4 (9) 13.6% cumulative persisting annual savings for the
9318	9318	5 year ending December 31, 2026. ;
9319	9319	6 (10) 14.2% cumulative persisting annual savings for
9320	9320	7 the year ending December 31, 2027;
9321	9321	8 (11) 14.8% cumulative persisting annual savings for
9322	9322	9 the year ending December 31, 2028;
9323	9323	10 (12) 15.4% cumulative persisting annual savings for
9324	9324	11 the year ending December 31, 2029; and
9325	9325	12 (13) 16% cumulative persisting annual savings for the
9326	9326	13 year ending December 31, 2030.
9327	9327	14 No later than December 31, 2021, the Illinois Commerce
9328	9328	15 Commission shall establish additional cumulative persisting
9329	9329	16 annual savings goals for the years 2031 through 2035. No later
9330	9330	17 than December 31, 2024, the Illinois Commerce Commission shall
9331	9331	18 establish additional cumulative persisting annual savings
9332	9332	19 goals for the years 2036 through 2040. The Commission shall
9333	9333	20 also establish additional cumulative persisting annual savings
9334	9334	21 goals every 5 years thereafter to ensure that utilities always
9335	9335	22 have goals that extend at least 11 years into the future. The
9336	9336	23 cumulative persisting annual savings goals beyond the year
9337	9337	24 2030 shall increase by 0.6 percentage points per year, absent
9338	9338	25 a Commission decision to initiate a proceeding to consider
9339	9339	26 establishing goals that increase by more or less than that
9340	9340
9341	9341
9342	9342
9343	9343
9344	9344
9345	9345	SB3997 - 259 - LRB103 43686 LNS 77044 b
9346	9346
9347	9347
9348	9348	SB3997- 260 -LRB103 43686 LNS 77044 b SB3997 - 260 - LRB103 43686 LNS 77044 b
9349	9349	SB3997 - 260 - LRB103 43686 LNS 77044 b
9350	9350	1 amount. Such a proceeding must be conducted in accordance with
9351	9351	2 the procedures described in subsection (f) of this Section. If
9352	9352	3 such a proceeding is initiated, the cumulative persisting
9353	9353	4 annual savings goals established by the Commission through
9354	9354	5 that proceeding shall reflect the Commission's best estimate
9355	9355	6 of the maximum amount of additional savings that are forecast
9356	9356	7 to be cost-effectively achievable unless such best estimates
9357	9357	8 would result in goals that represent less than 0.4 percentage
9358	9358	9 point annual increases in total cumulative persisting annual
9359	9359	10 savings. The Commission may only establish goals that
9360	9360	11 represent less than 0.4 percentage point annual increases in
9361	9361	12 cumulative persisting annual savings if it can demonstrate,
9362	9362	13 based on clear and convincing evidence and through independent
9363	9363	14 analysis, that 0.4 percentage point increases are not
9364	9364	15 cost-effectively achievable. The Commission shall inform its
9365	9365	16 decision based on an energy efficiency potential study that
9366	9366	17 conforms to the requirements of this Section.
9367	9367	18 (b-16) In 2027 and each year thereafter, each electric
9368	9368	19 utility subject to this Section shall achieve incremental
9369	9369	20 annual savings equal to 2.00% of the utility's average annual
9370	9370	21 electricity sales, from 2021 through 2023, to customers other
9371	9371	22 than those that have opted out of subsections (a) through (j)
9372	9372	23 of this Section under paragraph (1) of subsection (l) of this
9373	9373	24 Section. In this Section, "incremental annual savings" means
9374	9374	25 the total electric savings from all measures installed in a
9375	9375	26 calendar year that will be realized within 12 months of each
9376	9376
9377	9377
9378	9378
9379	9379
9380	9380
9381	9381	SB3997 - 260 - LRB103 43686 LNS 77044 b
9382	9382
9383	9383
9384	9384	SB3997- 261 -LRB103 43686 LNS 77044 b SB3997 - 261 - LRB103 43686 LNS 77044 b
9385	9385	SB3997 - 261 - LRB103 43686 LNS 77044 b
9386	9386	1 measure's installation.
9387	9387	2 The 2.00% incremental annual savings requirement may be
9388	9388	3 reduced by 0.025 percentage points for every 1 percentage
9389	9389	4 point increase, above the 25% minimum specified in paragraph
9390	9390	5 (c) of this Section, in the portion of total efficiency
9391	9391	6 program spending that is on low-income efficiency programs. In
9392	9392	7 no event shall the incremental annual savings requirement be
9393	9393	8 reduced to a level less than 1.75%, even if low-income
9394	9394	9 spending is greater than 35% of total spending.
9395	9395	10 Each utility's incremental annual savings must be achieved
9396	9396	11 with an average savings life of at least 12 years. In no event
9397	9397	12 can more than one-fifth of the incremental annual savings
9398	9398	13 counted toward a utility's annual savings goal in any given
9399	9399	14 year be derived from efficiency measures with average savings
9400	9400	15 lives of less than 5 years.
9401	9401	16 (b-20) Each electric utility subject to this Section may
9402	9402	17 include cost-effective voltage optimization measures in its
9403	9403	18 plans submitted under subsections (f) and (g) of this Section,
9404	9404	19 and the costs incurred by a utility to implement the measures
9405	9405	20 under a Commission-approved plan shall be recovered under the
9406	9406	21 provisions of Article IX or Section 16-108.5 of this Act. For
9407	9407	22 purposes of this Section, the measure life of voltage
9408	9408	23 optimization measures shall be 15 years. The measure life
9409	9409	24 period is independent of the depreciation rate of the voltage
9410	9410	25 optimization assets deployed. Utilities may claim savings from
9411	9411	26 voltage optimization on circuits for more than 15 years if
9412	9412
9413	9413
9414	9414
9415	9415
9416	9416
9417	9417	SB3997 - 261 - LRB103 43686 LNS 77044 b
9418	9418
9419	9419
9420	9420	SB3997- 262 -LRB103 43686 LNS 77044 b SB3997 - 262 - LRB103 43686 LNS 77044 b
9421	9421	SB3997 - 262 - LRB103 43686 LNS 77044 b
9422	9422	1 they can demonstrate that they have made additional
9423	9423	2 investments necessary to enable voltage optimization savings
9424	9424	3 to continue beyond 15 years. Such demonstrations must be
9425	9425	4 subject to the review of independent evaluation.
9426	9426	5 Within 270 days after June 1, 2017 (the effective date of
9427	9427	6 Public Act 99-906), an electric utility that serves less than
9428	9428	7 3,000,000 retail customers but more than 500,000 retail
9429	9429	8 customers in the State shall file a plan with the Commission
9430	9430	9 that identifies the cost-effective voltage optimization
9431	9431	10 investment the electric utility plans to undertake through
9432	9432	11 December 31, 2024. The Commission, after notice and hearing,
9433	9433	12 shall approve or approve with modification the plan within 120
9434	9434	13 days after the plan's filing and, in the order approving or
9435	9435	14 approving with modification the plan, the Commission shall
9436	9436	15 adjust the applicable cumulative persisting annual savings
9437	9437	16 goals set forth in subsection (b-15) to reflect any amount of
9438	9438	17 cost-effective energy savings approved by the Commission that
9439	9439	18 is greater than or less than the following cumulative
9440	9440	19 persisting annual savings values attributable to voltage
9441	9441	20 optimization for the applicable year:
9442	9442	21 (1) 0.0% of cumulative persisting annual savings for
9443	9443	22 the year ending December 31, 2018;
9444	9444	23 (2) 0.17% of cumulative persisting annual savings for
9445	9445	24 the year ending December 31, 2019;
9446	9446	25 (3) 0.17% of cumulative persisting annual savings for
9447	9447	26 the year ending December 31, 2020;
9448	9448
9449	9449
9450	9450
9451	9451
9452	9452
9453	9453	SB3997 - 262 - LRB103 43686 LNS 77044 b
9454	9454
9455	9455
9456	9456	SB3997- 263 -LRB103 43686 LNS 77044 b SB3997 - 263 - LRB103 43686 LNS 77044 b
9457	9457	SB3997 - 263 - LRB103 43686 LNS 77044 b
9458	9458	1 (4) 0.33% of cumulative persisting annual savings for
9459	9459	2 the year ending December 31, 2021;
9460	9460	3 (5) 0.5% of cumulative persisting annual savings for
9461	9461	4 the year ending December 31, 2022;
9462	9462	5 (6) 0.67% of cumulative persisting annual savings for
9463	9463	6 the year ending December 31, 2023;
9464	9464	7 (7) 0.83% of cumulative persisting annual savings for
9465	9465	8 the year ending December 31, 2024; and
9466	9466	9 (8) 1.0% of cumulative persisting annual savings for
9467	9467	10 the year ending December 31, 2025 and all subsequent
9468	9468	11 years.
9469	9469	12 (b-25) In the event an electric utility jointly offers an
9470	9470	13 energy efficiency measure or program with a gas utility under
9471	9471	14 plans approved under this Section and Section 8-104 of this
9472	9472	15 Act, the electric utility may continue offering the program,
9473	9473	16 including the gas energy efficiency measures, in the event the
9474	9474	17 gas utility discontinues funding the program. In that event,
9475	9475	18 the energy savings value associated with such other fuels
9476	9476	19 shall be converted to electric energy savings on an equivalent
9477	9477	20 Btu basis for the premises. However, the electric utility
9478	9478	21 shall prioritize programs for low-income residential customers
9479	9479	22 to the extent practicable. An electric utility may recover the
9480	9480	23 costs of offering the gas energy efficiency measures under
9481	9481	24 this subsection (b-25).
9482	9482	25 For those energy efficiency measures or programs that save
9483	9483	26 both electricity and other fuels but are not jointly offered
9484	9484
9485	9485
9486	9486
9487	9487
9488	9488
9489	9489	SB3997 - 263 - LRB103 43686 LNS 77044 b
9490	9490
9491	9491
9492	9492	SB3997- 264 -LRB103 43686 LNS 77044 b SB3997 - 264 - LRB103 43686 LNS 77044 b
9493	9493	SB3997 - 264 - LRB103 43686 LNS 77044 b
9494	9494	1 with a gas utility under plans approved under this Section and
9495	9495	2 Section 8-104 or not offered with an affiliated gas utility
9496	9496	3 under paragraph (6) of subsection (f) of Section 8-104 of this
9497	9497	4 Act, the electric utility may count savings of fuels other
9498	9498	5 than electricity toward the achievement of its annual savings
9499	9499	6 goal, and the energy savings value associated with such other
9500	9500	7 fuels shall be converted to electric energy savings on an
9501	9501	8 equivalent Btu basis at the premises.
9502	9502	9 In no event shall more than 10% of each year's applicable
9503	9503	10 annual total savings requirement, as defined in paragraph
9504	9504	11 (7.5) of subsection (g) of this Section, or more than 20% of
9505	9505	12 each year's incremental annual savings requirement, as defined
9506	9506	13 in subsection (b-16), be met through savings of fuels other
9507	9507	14 than electricity. If the weighted average total annual
9508	9508	15 spending on efficiency programs by natural gas utilities with
9509	9509	16 service territories that overlap with an electric utility
9510	9510	17 exceeds $50 per residential customer served by the natural gas
9511	9511	18 utilities, the limit on the amount of efficiency savings of
9512	9512	19 fuels other than electricity that can be counted toward the
9513	9513	20 electric utility's incremental annual savings requirement as
9514	9514	21 defined in subsection (b-16) shall be reduced from 20% to 15%.
9515	9515	22 (b-27) Beginning in 2022, an electric utility may offer
9516	9516	23 and promote measures that electrify space heating, water
9517	9517	24 heating, cooling, drying, cooking, industrial processes, and
9518	9518	25 other building and industrial end uses that would otherwise be
9519	9519	26 served by combustion of fossil fuel at the premises, provided
9520	9520
9521	9521
9522	9522
9523	9523
9524	9524
9525	9525	SB3997 - 264 - LRB103 43686 LNS 77044 b
9526	9526
9527	9527
9528	9528	SB3997- 265 -LRB103 43686 LNS 77044 b SB3997 - 265 - LRB103 43686 LNS 77044 b
9529	9529	SB3997 - 265 - LRB103 43686 LNS 77044 b
9530	9530	1 that the electrification measures reduce total energy
9531	9531	2 consumption at the premises. The electric utility may count
9532	9532	3 the reduction in energy consumption at the premises toward
9533	9533	4 achievement of its annual savings goals. The reduction in
9534	9534	5 energy consumption at the premises shall be calculated as the
9535	9535	6 difference between: (A) the reduction in Btu consumption of
9536	9536	7 fossil fuels as a result of electrification, converted to
9537	9537	8 kilowatt-hour equivalents by dividing by 3,412 Btus per
9538	9538	9 kilowatt hour; and (B) the increase in kilowatt hours of
9539	9539	10 electricity consumption resulting from the displacement of
9540	9540	11 fossil fuel consumption as a result of electrification. An
9541	9541	12 electric utility may recover the costs of offering and
9542	9542	13 promoting electrification measures under this subsection
9543	9543	14 (b-27).
9544	9544	15 At least 33% of all such costs must be for supporting
9545	9545	16 installation of electrification measures through programs
9546	9546	17 exclusively targeted to low-income households. This 33%
9547	9547	18 requirement may be reduced if the utility can demonstrate that
9548	9548	19 it is not possible to achieve that level of low-income
9549	9549	20 electrification spending, while supporting programs for
9550	9550	21 non-low-income residential and business electrification,
9551	9551	22 because of limitations regarding the number of low-income
9552	9552	23 households in its service territory that would be able to meet
9553	9553	24 program eligibility requirements set forth in the multi-year
9554	9554	25 energy efficiency plan. If the 33% low-income electrification
9555	9555	26 spending requirement is reduced, the utility must prioritize
9556	9556
9557	9557
9558	9558
9559	9559
9560	9560
9561	9561	SB3997 - 265 - LRB103 43686 LNS 77044 b
9562	9562
9563	9563
9564	9564	SB3997- 266 -LRB103 43686 LNS 77044 b SB3997 - 266 - LRB103 43686 LNS 77044 b
9565	9565	SB3997 - 266 - LRB103 43686 LNS 77044 b
9566	9566	1 support of low-income electrification in housing that meets
9567	9567	2 program eligibility requirements over electrification spending
9568	9568	3 on non-low-income residential or business customers.
9569	9569	4 The ratio of spending on electrification measures targeted
9570	9570	5 to low-income, multifamily buildings to spending on
9571	9571	6 electrification measures targeted to low-income, single-family
9572	9572	7 buildings shall be designed to achieve levels of
9573	9573	8 electrification savings from each building type that are
9574	9574	9 approximately proportional to the magnitude of cost-effective
9575	9575	10 electrification savings potential in each building type.
9576	9576	11 In no event shall electrification savings counted toward
9577	9577	12 each year's applicable annual total savings requirement, as
9578	9578	13 defined in paragraph (7.5) of subsection (g) of this Section,
9579	9579	14 or counted toward each year's incremental annual savings, as
9580	9580	15 defined in paragraph (b-16) of this Section, be greater than:
9581	9581	16 (1) 5% per year for each year from 2022 through 2026
9582	9582	17 2025; and
9583	9583	18 (2) 15% per year for 2027 and all subsequent years.
9584	9584	19 10% per year for each year from 2026 through 2029; and
9585	9585	20 (3) 15% per year for 2030 and all subsequent years.
9586	9586	21 In addition, a minimum of 25% of all electrification savings
9587	9587	22 counted toward a utility's applicable annual total savings
9588	9588	23 requirement must be from electrification of end uses in
9589	9589	24 low-income housing. The limitations on electrification savings
9590	9590	25 that may be counted toward a utility's annual savings goals
9591	9591	26 are separate from and in addition to the subsection (b-25)
9592	9592
9593	9593
9594	9594
9595	9595
9596	9596
9597	9597	SB3997 - 266 - LRB103 43686 LNS 77044 b
9598	9598
9599	9599
9600	9600	SB3997- 267 -LRB103 43686 LNS 77044 b SB3997 - 267 - LRB103 43686 LNS 77044 b
9601	9601	SB3997 - 267 - LRB103 43686 LNS 77044 b
9602	9602	1 limitations governing the counting of the other fuel savings
9603	9603	2 resulting from efficiency measures and programs.
9604	9604	3 As part of the annual informational filing to the
9605	9605	4 Commission that is required under paragraph (9) of subsection
9606	9606	5 (g) of this Section, each utility shall identify the specific
9607	9607	6 electrification measures offered under this subsection (b-27);
9608	9608	7 the quantity of each electrification measure that was
9609	9609	8 installed by its customers; the average total cost, average
9610	9610	9 utility cost, average reduction in fossil fuel consumption,
9611	9611	10 and average increase in electricity consumption associated
9612	9612	11 with each electrification measure; the portion of
9613	9613	12 installations of each electrification measure that were in
9614	9614	13 low-income single-family housing, low-income multifamily
9615	9615	14 housing, non-low-income single-family housing, non-low-income
9616	9616	15 multifamily housing, commercial buildings, and industrial
9617	9617	16 facilities; and the quantity of savings associated with each
9618	9618	17 measure category in each customer category that are being
9619	9619	18 counted toward the utility's applicable annual total savings
9620	9620	19 requirement or the utility's incremental annual savings, as
9621	9621	20 defined in subsection (b-16). Prior to installing an
9622	9622	21 electrification measure, the utility shall provide a customer
9623	9623	22 with an estimate of the impact of the new measure on the
9624	9624	23 customer's average monthly electric bill and total annual
9625	9625	24 energy expenses.
9626	9626	25 (c) Electric utilities shall be responsible for overseeing
9627	9627	26 the design, development, and filing of energy efficiency plans
9628	9628
9629	9629
9630	9630
9631	9631
9632	9632
9633	9633	SB3997 - 267 - LRB103 43686 LNS 77044 b
9634	9634
9635	9635
9636	9636	SB3997- 268 -LRB103 43686 LNS 77044 b SB3997 - 268 - LRB103 43686 LNS 77044 b
9637	9637	SB3997 - 268 - LRB103 43686 LNS 77044 b
9638	9638	1 with the Commission and may, as part of that implementation,
9639	9639	2 outsource various aspects of program development and
9640	9640	3 implementation. A minimum of 10%, for electric utilities that
9641	9641	4 serve more than 3,000,000 retail customers in the State, and a
9642	9642	5 minimum of 7%, for electric utilities that serve less than
9643	9643	6 3,000,000 retail customers but more than 500,000 retail
9644	9644	7 customers in the State, of the utility's entire portfolio
9645	9645	8 funding level for a given year shall be used to procure
9646	9646	9 cost-effective energy efficiency measures from units of local
9647	9647	10 government, municipal corporations, school districts, public
9648	9648	11 housing, public institutions of higher education, and
9649	9649	12 community college districts, provided that a minimum
9650	9650	13 percentage of available funds shall be used to procure energy
9651	9651	14 efficiency from public housing, which percentage shall be
9652	9652	15 equal to public housing's share of public building energy
9653	9653	16 consumption.
9654	9654	17 The utilities shall also implement energy efficiency
9655	9655	18 measures targeted at low-income households, which, for
9656	9656	19 purposes of this Section, shall be defined as households at or
9657	9657	20 below 80% of area median income, and expenditures to implement
9658	9658	21 the measures shall be no less than 25% of total energy
9659	9659	22 efficiency program spending approved by the Commission
9660	9660	23 pursuant to review of plans filed under paragraph (f) of this
9661	9661	24 Section $40,000,000 per year for electric utilities that serve
9662	9662	25 more than 3,000,000 retail customers in the State and no less
9663	9663	26 than $13,000,000 per year for electric utilities that serve
9664	9664
9665	9665
9666	9666
9667	9667
9668	9668
9669	9669	SB3997 - 268 - LRB103 43686 LNS 77044 b
9670	9670
9671	9671
9672	9672	SB3997- 269 -LRB103 43686 LNS 77044 b SB3997 - 269 - LRB103 43686 LNS 77044 b
9673	9673	SB3997 - 269 - LRB103 43686 LNS 77044 b
9674	9674	1 less than 3,000,000 retail customers but more than 500,000
9675	9675	2 retail customers in the State. The ratio of spending on
9676	9676	3 efficiency programs targeted at low-income multifamily
9677	9677	4 buildings to spending on efficiency programs targeted at
9678	9678	5 low-income single-family buildings shall be designed to
9679	9679	6 achieve levels of savings from each building type that are
9680	9680	7 approximately proportional to the magnitude of cost-effective
9681	9681	8 lifetime savings potential in each building type. Investment
9682	9682	9 in low-income whole-building weatherization programs shall
9683	9683	10 constitute a minimum of 80% of a utility's total budget
9684	9684	11 specifically dedicated to serving low-income customers.
9685	9685	12 The utilities shall work to bundle low-income energy
9686	9686	13 efficiency offerings with other programs that serve low-income
9687	9687	14 households to maximize the benefits going to these households.
9688	9688	15 The utilities shall market and implement low-income energy
9689	9689	16 efficiency programs in coordination with low-income assistance
9690	9690	17 programs, the Illinois Solar for All Program, and
9691	9691	18 weatherization whenever practicable. The program implementer
9692	9692	19 shall walk the customer through the enrollment process for any
9693	9693	20 programs for which the customer is eligible. The utilities
9694	9694	21 shall also pilot targeting customers with high arrearages,
9695	9695	22 high energy intensity (ratio of energy usage divided by home
9696	9696	23 or unit square footage), or energy assistance programs with
9697	9697	24 energy efficiency offerings, and then track reduction in
9698	9698	25 arrearages as a result of the targeting. This targeting and
9699	9699	26 bundling of low-income energy programs shall be offered to
9700	9700
9701	9701
9702	9702
9703	9703
9704	9704
9705	9705	SB3997 - 269 - LRB103 43686 LNS 77044 b
9706	9706
9707	9707
9708	9708	SB3997- 270 -LRB103 43686 LNS 77044 b SB3997 - 270 - LRB103 43686 LNS 77044 b
9709	9709	SB3997 - 270 - LRB103 43686 LNS 77044 b
9710	9710	1 both low-income single-family and multifamily customers
9711	9711	2 (owners and residents).
9712	9712	3 The utilities shall invest in health and safety measures
9713	9713	4 appropriate and necessary for comprehensively weatherizing a
9714	9714	5 home or multifamily building, and shall implement a health and
9715	9715	6 safety fund of at least 15% of the total income-qualified
9716	9716	7 weatherization budget that shall be used for the purpose of
9717	9717	8 making grants for technical assistance, construction,
9718	9718	9 reconstruction, improvement, or repair of buildings to
9719	9719	10 facilitate their participation in the energy efficiency
9720	9720	11 programs targeted at low-income single-family and multifamily
9721	9721	12 households. These funds may also be used for the purpose of
9722	9722	13 making grants for technical assistance, construction,
9723	9723	14 reconstruction, improvement, or repair of the following
9724	9724	15 buildings to facilitate their participation in the energy
9725	9725	16 efficiency programs created by this Section: (1) buildings
9726	9726	17 that are owned or operated by registered 501(c)(3) public
9727	9727	18 charities; and (2) day care centers, day care homes, or group
9728	9728	19 day care homes, as defined under 89 Ill. Adm. Code Part 406,
9729	9729	20 407, or 408, respectively.
9730	9730	21 Each electric utility shall assess opportunities to
9731	9731	22 implement cost-effective energy efficiency measures and
9732	9732	23 programs through a public housing authority or authorities
9733	9733	24 located in its service territory. If such opportunities are
9734	9734	25 identified, the utility shall propose such measures and
9735	9735	26 programs to address the opportunities. Expenditures to address
9736	9736
9737	9737
9738	9738
9739	9739
9740	9740
9741	9741	SB3997 - 270 - LRB103 43686 LNS 77044 b
9742	9742
9743	9743
9744	9744	SB3997- 271 -LRB103 43686 LNS 77044 b SB3997 - 271 - LRB103 43686 LNS 77044 b
9745	9745	SB3997 - 271 - LRB103 43686 LNS 77044 b
9746	9746	1 such opportunities shall be credited toward the minimum
9747	9747	2 procurement and expenditure requirements set forth in this
9748	9748	3 subsection (c).
9749	9749	4 Implementation of energy efficiency measures and programs
9750	9750	5 targeted at low-income households should be contracted, when
9751	9751	6 it is practicable, to independent third parties that have
9752	9752	7 demonstrated capabilities to serve such households, with a
9753	9753	8 preference for not-for-profit entities and government agencies
9754	9754	9 that have existing relationships with or experience serving
9755	9755	10 low-income communities in the State.
9756	9756	11 Each electric utility shall develop and implement
9757	9757	12 reporting procedures that address and assist in determining
9758	9758	13 the amount of energy savings that can be applied to the
9759	9759	14 low-income procurement and expenditure requirements set forth
9760	9760	15 in this subsection (c). Each electric utility shall also track
9761	9761	16 the types and quantities or volumes of insulation and air
9762	9762	17 sealing materials, and their associated energy saving
9763	9763	18 benefits, installed in energy efficiency programs targeted at
9764	9764	19 low-income single-family and multifamily households.
9765	9765	20 The electric utilities shall participate in a low-income
9766	9766	21 energy efficiency accountability committee ("the committee"),
9767	9767	22 which will directly inform the design, implementation, and
9768	9768	23 evaluation of the low-income and public-housing energy
9769	9769	24 efficiency programs. The committee shall be comprised of the
9770	9770	25 electric utilities subject to the requirements of this
9771	9771	26 Section, the gas utilities subject to the requirements of
9772	9772
9773	9773
9774	9774
9775	9775
9776	9776
9777	9777	SB3997 - 271 - LRB103 43686 LNS 77044 b
9778	9778
9779	9779
9780	9780	SB3997- 272 -LRB103 43686 LNS 77044 b SB3997 - 272 - LRB103 43686 LNS 77044 b
9781	9781	SB3997 - 272 - LRB103 43686 LNS 77044 b
9782	9782	1 Section 8-104 of this Act, the utilities' low-income energy
9783	9783	2 efficiency implementation contractors, nonprofit
9784	9784	3 organizations, community action agencies, advocacy groups,
9785	9785	4 State and local governmental agencies, public-housing
9786	9786	5 organizations, and representatives of community-based
9787	9787	6 organizations, especially those living in or working with
9788	9788	7 environmental justice communities and BIPOC communities. The
9789	9789	8 committee shall be composed of 2 geographically differentiated
9790	9790	9 subcommittees: one for stakeholders in northern Illinois and
9791	9791	10 one for stakeholders in central and southern Illinois. The
9792	9792	11 subcommittees shall meet together at least twice per year.
9793	9793	12 There shall be one statewide leadership committee led by
9794	9794	13 and composed of community-based organizations that are
9795	9795	14 representative of BIPOC and environmental justice communities
9796	9796	15 and that includes equitable representation from BIPOC
9797	9797	16 communities. The leadership committee shall be composed of an
9798	9798	17 equal number of representatives from the 2 subcommittees. The
9799	9799	18 subcommittees shall address specific programs and issues, with
9800	9800	19 the leadership committee convening targeted workgroups as
9801	9801	20 needed. The leadership committee may elect to work with an
9802	9802	21 independent facilitator to solicit and organize feedback,
9803	9803	22 recommendations and meeting participation from a wide variety
9804	9804	23 of community-based stakeholders. If a facilitator is used,
9805	9805	24 they shall be fair and responsive to the needs of all
9806	9806	25 stakeholders involved in the committee.
9807	9807	26 All committee meetings must be accessible, with rotating
9808	9808
9809	9809
9810	9810
9811	9811
9812	9812
9813	9813	SB3997 - 272 - LRB103 43686 LNS 77044 b
9814	9814
9815	9815
9816	9816	SB3997- 273 -LRB103 43686 LNS 77044 b SB3997 - 273 - LRB103 43686 LNS 77044 b
9817	9817	SB3997 - 273 - LRB103 43686 LNS 77044 b
9818	9818	1 locations if meetings are held in-person, virtual
9819	9819	2 participation options, and materials and agendas circulated in
9820	9820	3 advance.
9821	9821	4 There shall also be opportunities for direct input by
9822	9822	5 committee members outside of committee meetings, such as via
9823	9823	6 individual meetings, surveys, emails and calls, to ensure
9824	9824	7 robust participation by stakeholders with limited capacity and
9825	9825	8 ability to attend committee meetings. Committee meetings shall
9826	9826	9 emphasize opportunities to bundle and coordinate delivery of
9827	9827	10 low-income energy efficiency with other programs that serve
9828	9828	11 low-income communities, such as the Illinois Solar for All
9829	9829	12 Program and bill payment assistance programs. Meetings shall
9830	9830	13 include educational opportunities for stakeholders to learn
9831	9831	14 more about these additional offerings, and the committee shall
9832	9832	15 assist in figuring out the best methods for coordinated
9833	9833	16 delivery and implementation of offerings when serving
9834	9834	17 low-income communities. The committee shall directly and
9835	9835	18 equitably influence and inform utility low-income and
9836	9836	19 public-housing energy efficiency programs and priorities.
9837	9837	20 Participating utilities shall implement recommendations from
9838	9838	21 the committee whenever possible.
9839	9839	22 Participating utilities shall track and report how input
9840	9840	23 from the committee has led to new approaches and changes in
9841	9841	24 their energy efficiency portfolios. This reporting shall occur
9842	9842	25 at committee meetings and in quarterly energy efficiency
9843	9843	26 reports to the Stakeholder Advisory Group and Illinois
9844	9844
9845	9845
9846	9846
9847	9847
9848	9848
9849	9849	SB3997 - 273 - LRB103 43686 LNS 77044 b
9850	9850
9851	9851
9852	9852	SB3997- 274 -LRB103 43686 LNS 77044 b SB3997 - 274 - LRB103 43686 LNS 77044 b
9853	9853	SB3997 - 274 - LRB103 43686 LNS 77044 b
9854	9854	1 Commerce Commission, and other relevant reporting mechanisms.
9855	9855	2 Participating utilities shall also report on relevant equity
9856	9856	3 data and metrics requested by the committee, such as energy
9857	9857	4 burden data, geographic, racial, and other relevant
9858	9858	5 demographic data on where programs are being delivered and
9859	9859	6 what populations programs are serving.
9860	9860	7 The Illinois Commerce Commission shall oversee and have
9861	9861	8 relevant staff participate in the committee. The committee
9862	9862	9 shall have a budget of 0.25% of each utility's entire
9863	9863	10 efficiency portfolio funding for a given year. The budget
9864	9864	11 shall be overseen by the Commission. The budget shall be used
9865	9865	12 to provide grants for community-based organizations serving on
9866	9866	13 the leadership committee, stipends for community-based
9867	9867	14 organizations participating in the committee, grants for
9868	9868	15 community-based organizations to do energy efficiency outreach
9869	9869	16 and education, and relevant meeting needs as determined by the
9870	9870	17 leadership committee. The education and outreach shall
9871	9871	18 include, but is not limited to, basic energy efficiency
9872	9872	19 education, information about low-income energy efficiency
9873	9873	20 programs, and information on the committee's purpose,
9874	9874	21 structure, and activities.
9875	9875	22 (d) Notwithstanding any other provision of law to the
9876	9876	23 contrary, a utility providing approved energy efficiency
9877	9877	24 measures and, if applicable, demand-response measures in the
9878	9878	25 State shall be permitted to recover all reasonable and
9879	9879	26 prudently incurred costs of those measures from all retail
9880	9880
9881	9881
9882	9882
9883	9883
9884	9884
9885	9885	SB3997 - 274 - LRB103 43686 LNS 77044 b
9886	9886
9887	9887
9888	9888	SB3997- 275 -LRB103 43686 LNS 77044 b SB3997 - 275 - LRB103 43686 LNS 77044 b
9889	9889	SB3997 - 275 - LRB103 43686 LNS 77044 b
9890	9890	1 customers, except as provided in subsection (l) of this
9891	9891	2 Section, as follows, provided that nothing in this subsection
9892	9892	3 (d) permits the double recovery of such costs from customers:
9893	9893	4 (1) The utility may recover its costs through an
9894	9894	5 automatic adjustment clause tariff filed with and approved
9895	9895	6 by the Commission. The tariff shall be established outside
9896	9896	7 the context of a general rate case. Each year the
9897	9897	8 Commission shall initiate a review to reconcile any
9898	9898	9 amounts collected with the actual costs and to determine
9899	9899	10 the required adjustment to the annual tariff factor to
9900	9900	11 match annual expenditures. To enable the financing of the
9901	9901	12 incremental capital expenditures, including regulatory
9902	9902	13 assets, for electric utilities that serve less than
9903	9903	14 3,000,000 retail customers but more than 500,000 retail
9904	9904	15 customers in the State, the utility's actual year-end
9905	9905	16 capital structure that includes a common equity ratio,
9906	9906	17 excluding goodwill, of up to and including 50% of the
9907	9907	18 total capital structure shall be deemed reasonable and
9908	9908	19 used to set rates.
9909	9909	20 (2) A utility may recover its costs through an energy
9910	9910	21 efficiency formula rate approved by the Commission under a
9911	9911	22 filing under subsections (f) and (g) of this Section,
9912	9912	23 which shall specify the cost components that form the
9913	9913	24 basis of the rate charged to customers with sufficient
9914	9914	25 specificity to operate in a standardized manner and be
9915	9915	26 updated annually with transparent information that
9916	9916
9917	9917
9918	9918
9919	9919
9920	9920
9921	9921	SB3997 - 275 - LRB103 43686 LNS 77044 b
9922	9922
9923	9923
9924	9924	SB3997- 276 -LRB103 43686 LNS 77044 b SB3997 - 276 - LRB103 43686 LNS 77044 b
9925	9925	SB3997 - 276 - LRB103 43686 LNS 77044 b
9926	9926	1 reflects the utility's actual costs to be recovered during
9927	9927	2 the applicable rate year, which is the period beginning
9928	9928	3 with the first billing day of January and extending
9929	9929	4 through the last billing day of the following December.
9930	9930	5 The energy efficiency formula rate shall be implemented
9931	9931	6 through a tariff filed with the Commission under
9932	9932	7 subsections (f) and (g) of this Section that is consistent
9933	9933	8 with the provisions of this paragraph (2) and that shall
9934	9934	9 be applicable to all delivery services customers. The
9935	9935	10 Commission shall conduct an investigation of the tariff in
9936	9936	11 a manner consistent with the provisions of this paragraph
9937	9937	12 (2), subsections (f) and (g) of this Section, and the
9938	9938	13 provisions of Article IX of this Act to the extent they do
9939	9939	14 not conflict with this paragraph (2). The energy
9940	9940	15 efficiency formula rate approved by the Commission shall
9941	9941	16 remain in effect at the discretion of the utility and
9942	9942	17 shall do the following:
9943	9943	18 (A) Provide for the recovery of the utility's
9944	9944	19 actual costs incurred under this Section that are
9945	9945	20 prudently incurred and reasonable in amount consistent
9946	9946	21 with Commission practice and law. The sole fact that a
9947	9947	22 cost differs from that incurred in a prior calendar
9948	9948	23 year or that an investment is different from that made
9949	9949	24 in a prior calendar year shall not imply the
9950	9950	25 imprudence or unreasonableness of that cost or
9951	9951	26 investment.
9952	9952
9953	9953
9954	9954
9955	9955
9956	9956
9957	9957	SB3997 - 276 - LRB103 43686 LNS 77044 b
9958	9958
9959	9959
9960	9960	SB3997- 277 -LRB103 43686 LNS 77044 b SB3997 - 277 - LRB103 43686 LNS 77044 b
9961	9961	SB3997 - 277 - LRB103 43686 LNS 77044 b
9962	9962	1 (B) Reflect the utility's actual year-end capital
9963	9963	2 structure for the applicable calendar year, excluding
9964	9964	3 goodwill, subject to a determination of prudence and
9965	9965	4 reasonableness consistent with Commission practice and
9966	9966	5 law. To enable the financing of the incremental
9967	9967	6 capital expenditures, including regulatory assets, for
9968	9968	7 electric utilities that serve less than 3,000,000
9969	9969	8 retail customers but more than 500,000 retail
9970	9970	9 customers in the State, a participating electric
9971	9971	10 utility's actual year-end capital structure that
9972	9972	11 includes a common equity ratio, excluding goodwill, of
9973	9973	12 up to and including 50% of the total capital structure
9974	9974	13 shall be deemed reasonable and used to set rates.
9975	9975	14 (C) Include a cost of equity, which shall be
9976	9976	15 calculated as the sum of the following:
9977	9977	16 (i) the average for the applicable calendar
9978	9978	17 year of the monthly average yields of 30-year U.S.
9979	9979	18 Treasury bonds published by the Board of Governors
9980	9980	19 of the Federal Reserve System in its weekly H.15
9981	9981	20 Statistical Release or successor publication; and
9982	9982	21 (ii) 580 basis points.
9983	9983	22 At such time as the Board of Governors of the
9984	9984	23 Federal Reserve System ceases to include the monthly
9985	9985	24 average yields of 30-year U.S. Treasury bonds in its
9986	9986	25 weekly H.15 Statistical Release or successor
9987	9987	26 publication, the monthly average yields of the U.S.
9988	9988
9989	9989
9990	9990
9991	9991
9992	9992
9993	9993	SB3997 - 277 - LRB103 43686 LNS 77044 b
9994	9994
9995	9995
9996	9996	SB3997- 278 -LRB103 43686 LNS 77044 b SB3997 - 278 - LRB103 43686 LNS 77044 b
9997	9997	SB3997 - 278 - LRB103 43686 LNS 77044 b
9998	9998	1 Treasury bonds then having the longest duration
9999	9999	2 published by the Board of Governors in its weekly H.15
10000	10000	3 Statistical Release or successor publication shall
10001	10001	4 instead be used for purposes of this paragraph (2).
10002	10002	5 (D) Permit and set forth protocols, subject to a
10003	10003	6 determination of prudence and reasonableness
10004	10004	7 consistent with Commission practice and law, for the
10005	10005	8 following:
10006	10006	9 (i) recovery of incentive compensation expense
10007	10007	10 that is based on the achievement of operational
10008	10008	11 metrics, including metrics related to budget
10009	10009	12 controls, outage duration and frequency, safety,
10010	10010	13 customer service, efficiency and productivity, and
10011	10011	14 environmental compliance; however, this protocol
10012	10012	15 shall not apply if such expense related to costs
10013	10013	16 incurred under this Section is recovered under
10014	10014	17 Article IX or Section 16-108.5 of this Act;
10015	10015	18 incentive compensation expense that is based on
10016	10016	19 net income or an affiliate's earnings per share
10017	10017	20 shall not be recoverable under the energy
10018	10018	21 efficiency formula rate;
10019	10019	22 (ii) recovery of pension and other
10020	10020	23 post-employment benefits expense, provided that
10021	10021	24 such costs are supported by an actuarial study;
10022	10022	25 however, this protocol shall not apply if such
10023	10023	26 expense related to costs incurred under this
10024	10024
10025	10025
10026	10026
10027	10027
10028	10028
10029	10029	SB3997 - 278 - LRB103 43686 LNS 77044 b
10030	10030
10031	10031
10032	10032	SB3997- 279 -LRB103 43686 LNS 77044 b SB3997 - 279 - LRB103 43686 LNS 77044 b
10033	10033	SB3997 - 279 - LRB103 43686 LNS 77044 b
10034	10034	1 Section is recovered under Article IX or Section
10035	10035	2 16-108.5 of this Act;
10036	10036	3 (iii) recovery of existing regulatory assets
10037	10037	4 over the periods previously authorized by the
10038	10038	5 Commission;
10039	10039	6 (iv) as described in subsection (e),
10040	10040	7 amortization of costs incurred under this Section;
10041	10041	8 and
10042	10042	9 (v) projected, weather normalized billing
10043	10043	10 determinants for the applicable rate year.
10044	10044	11 (E) Provide for an annual reconciliation, as
10045	10045	12 described in paragraph (3) of this subsection (d),
10046	10046	13 less any deferred taxes related to the reconciliation,
10047	10047	14 with interest at an annual rate of return equal to the
10048	10048	15 utility's weighted average cost of capital, including
10049	10049	16 a revenue conversion factor calculated to recover or
10050	10050	17 refund all additional income taxes that may be payable
10051	10051	18 or receivable as a result of that return, of the energy
10052	10052	19 efficiency revenue requirement reflected in rates for
10053	10053	20 each calendar year, beginning with the calendar year
10054	10054	21 in which the utility files its energy efficiency
10055	10055	22 formula rate tariff under this paragraph (2), with
10056	10056	23 what the revenue requirement would have been had the
10057	10057	24 actual cost information for the applicable calendar
10058	10058	25 year been available at the filing date.
10059	10059	26 The utility shall file, together with its tariff, the
10060	10060
10061	10061
10062	10062
10063	10063
10064	10064
10065	10065	SB3997 - 279 - LRB103 43686 LNS 77044 b
10066	10066
10067	10067
10068	10068	SB3997- 280 -LRB103 43686 LNS 77044 b SB3997 - 280 - LRB103 43686 LNS 77044 b
10069	10069	SB3997 - 280 - LRB103 43686 LNS 77044 b
10070	10070	1 projected costs to be incurred by the utility during the
10071	10071	2 rate year under the utility's multi-year plan approved
10072	10072	3 under subsections (f) and (g) of this Section, including,
10073	10073	4 but not limited to, the projected capital investment costs
10074	10074	5 and projected regulatory asset balances with
10075	10075	6 correspondingly updated depreciation and amortization
10076	10076	7 reserves and expense, that shall populate the energy
10077	10077	8 efficiency formula rate and set the initial rates under
10078	10078	9 the formula.
10079	10079	10 The Commission shall review the proposed tariff in
10080	10080	11 conjunction with its review of a proposed multi-year plan,
10081	10081	12 as specified in paragraph (5) of subsection (g) of this
10082	10082	13 Section. The review shall be based on the same evidentiary
10083	10083	14 standards, including, but not limited to, those concerning
10084	10084	15 the prudence and reasonableness of the costs incurred by
10085	10085	16 the utility, the Commission applies in a hearing to review
10086	10086	17 a filing for a general increase in rates under Article IX
10087	10087	18 of this Act. The initial rates shall take effect beginning
10088	10088	19 with the January monthly billing period following the
10089	10089	20 Commission's approval.
10090	10090	21 The tariff's rate design and cost allocation across
10091	10091	22 customer classes shall be consistent with the utility's
10092	10092	23 automatic adjustment clause tariff in effect on June 1,
10093	10093	24 2017 (the effective date of Public Act 99-906); however,
10094	10094	25 the Commission may revise the tariff's rate design and
10095	10095	26 cost allocation in subsequent proceedings under paragraph
10096	10096
10097	10097
10098	10098
10099	10099
10100	10100
10101	10101	SB3997 - 280 - LRB103 43686 LNS 77044 b
10102	10102
10103	10103
10104	10104	SB3997- 281 -LRB103 43686 LNS 77044 b SB3997 - 281 - LRB103 43686 LNS 77044 b
10105	10105	SB3997 - 281 - LRB103 43686 LNS 77044 b
10106	10106	1 (3) of this subsection (d).
10107	10107	2 If the energy efficiency formula rate is terminated,
10108	10108	3 the then current rates shall remain in effect until such
10109	10109	4 time as the energy efficiency costs are incorporated into
10110	10110	5 new rates that are set under this subsection (d) or
10111	10111	6 Article IX of this Act, subject to retroactive rate
10112	10112	7 adjustment, with interest, to reconcile rates charged with
10113	10113	8 actual costs.
10114	10114	9 (3) The provisions of this paragraph (3) shall only
10115	10115	10 apply to an electric utility that has elected to file an
10116	10116	11 energy efficiency formula rate under paragraph (2) of this
10117	10117	12 subsection (d). Subsequent to the Commission's issuance of
10118	10118	13 an order approving the utility's energy efficiency formula
10119	10119	14 rate structure and protocols, and initial rates under
10120	10120	15 paragraph (2) of this subsection (d), the utility shall
10121	10121	16 file, on or before June 1 of each year, with the Chief
10122	10122	17 Clerk of the Commission its updated cost inputs to the
10123	10123	18 energy efficiency formula rate for the applicable rate
10124	10124	19 year and the corresponding new charges, as well as the
10125	10125	20 information described in paragraph (9) of subsection (g)
10126	10126	21 of this Section. Each such filing shall conform to the
10127	10127	22 following requirements and include the following
10128	10128	23 information:
10129	10129	24 (A) The inputs to the energy efficiency formula
10130	10130	25 rate for the applicable rate year shall be based on the
10131	10131	26 projected costs to be incurred by the utility during
10132	10132
10133	10133
10134	10134
10135	10135
10136	10136
10137	10137	SB3997 - 281 - LRB103 43686 LNS 77044 b
10138	10138
10139	10139
10140	10140	SB3997- 282 -LRB103 43686 LNS 77044 b SB3997 - 282 - LRB103 43686 LNS 77044 b
10141	10141	SB3997 - 282 - LRB103 43686 LNS 77044 b
10142	10142	1 the rate year under the utility's multi-year plan
10143	10143	2 approved under subsections (f) and (g) of this
10144	10144	3 Section, including, but not limited to, projected
10145	10145	4 capital investment costs and projected regulatory
10146	10146	5 asset balances with correspondingly updated
10147	10147	6 depreciation and amortization reserves and expense.
10148	10148	7 The filing shall also include a reconciliation of the
10149	10149	8 energy efficiency revenue requirement that was in
10150	10150	9 effect for the prior rate year (as set by the cost
10151	10151	10 inputs for the prior rate year) with the actual
10152	10152	11 revenue requirement for the prior rate year
10153	10153	12 (determined using a year-end rate base) that uses
10154	10154	13 amounts reflected in the applicable FERC Form 1 that
10155	10155	14 reports the actual costs for the prior rate year. Any
10156	10156	15 over-collection or under-collection indicated by such
10157	10157	16 reconciliation shall be reflected as a credit against,
10158	10158	17 or recovered as an additional charge to, respectively,
10159	10159	18 with interest calculated at a rate equal to the
10160	10160	19 utility's weighted average cost of capital approved by
10161	10161	20 the Commission for the prior rate year, the charges
10162	10162	21 for the applicable rate year. Such over-collection or
10163	10163	22 under-collection shall be adjusted to remove any
10164	10164	23 deferred taxes related to the reconciliation, for
10165	10165	24 purposes of calculating interest at an annual rate of
10166	10166	25 return equal to the utility's weighted average cost of
10167	10167	26 capital approved by the Commission for the prior rate
10168	10168
10169	10169
10170	10170
10171	10171
10172	10172
10173	10173	SB3997 - 282 - LRB103 43686 LNS 77044 b
10174	10174
10175	10175
10176	10176	SB3997- 283 -LRB103 43686 LNS 77044 b SB3997 - 283 - LRB103 43686 LNS 77044 b
10177	10177	SB3997 - 283 - LRB103 43686 LNS 77044 b
10178	10178	1 year, including a revenue conversion factor calculated
10179	10179	2 to recover or refund all additional income taxes that
10180	10180	3 may be payable or receivable as a result of that
10181	10181	4 return. Each reconciliation shall be certified by the
10182	10182	5 participating utility in the same manner that FERC
10183	10183	6 Form 1 is certified. The filing shall also include the
10184	10184	7 charge or credit, if any, resulting from the
10185	10185	8 calculation required by subparagraph (E) of paragraph
10186	10186	9 (2) of this subsection (d).
10187	10187	10 Notwithstanding any other provision of law to the
10188	10188	11 contrary, the intent of the reconciliation is to
10189	10189	12 ultimately reconcile both the revenue requirement
10190	10190	13 reflected in rates for each calendar year, beginning
10191	10191	14 with the calendar year in which the utility files its
10192	10192	15 energy efficiency formula rate tariff under paragraph
10193	10193	16 (2) of this subsection (d), with what the revenue
10194	10194	17 requirement determined using a year-end rate base for
10195	10195	18 the applicable calendar year would have been had the
10196	10196	19 actual cost information for the applicable calendar
10197	10197	20 year been available at the filing date.
10198	10198	21 For purposes of this Section, "FERC Form 1" means
10199	10199	22 the Annual Report of Major Electric Utilities,
10200	10200	23 Licensees and Others that electric utilities are
10201	10201	24 required to file with the Federal Energy Regulatory
10202	10202	25 Commission under the Federal Power Act, Sections 3,
10203	10203	26 4(a), 304 and 209, modified as necessary to be
10204	10204
10205	10205
10206	10206
10207	10207
10208	10208
10209	10209	SB3997 - 283 - LRB103 43686 LNS 77044 b
10210	10210
10211	10211
10212	10212	SB3997- 284 -LRB103 43686 LNS 77044 b SB3997 - 284 - LRB103 43686 LNS 77044 b
10213	10213	SB3997 - 284 - LRB103 43686 LNS 77044 b
10214	10214	1 consistent with 83 Ill. Adm. Code Part 415 as of May 1,
10215	10215	2 2011. Nothing in this Section is intended to allow
10216	10216	3 costs that are not otherwise recoverable to be
10217	10217	4 recoverable by virtue of inclusion in FERC Form 1.
10218	10218	5 (B) The new charges shall take effect beginning on
10219	10219	6 the first billing day of the following January billing
10220	10220	7 period and remain in effect through the last billing
10221	10221	8 day of the next December billing period regardless of
10222	10222	9 whether the Commission enters upon a hearing under
10223	10223	10 this paragraph (3).
10224	10224	11 (C) The filing shall include relevant and
10225	10225	12 necessary data and documentation for the applicable
10226	10226	13 rate year. Normalization adjustments shall not be
10227	10227	14 required.
10228	10228	15 Within 45 days after the utility files its annual
10229	10229	16 update of cost inputs to the energy efficiency formula
10230	10230	17 rate, the Commission shall with reasonable notice,
10231	10231	18 initiate a proceeding concerning whether the projected
10232	10232	19 costs to be incurred by the utility and recovered during
10233	10233	20 the applicable rate year, and that are reflected in the
10234	10234	21 inputs to the energy efficiency formula rate, are
10235	10235	22 consistent with the utility's approved multi-year plan
10236	10236	23 under subsections (f) and (g) of this Section and whether
10237	10237	24 the costs incurred by the utility during the prior rate
10238	10238	25 year were prudent and reasonable. The Commission shall
10239	10239	26 also have the authority to investigate the information and
10240	10240
10241	10241
10242	10242
10243	10243
10244	10244
10245	10245	SB3997 - 284 - LRB103 43686 LNS 77044 b
10246	10246
10247	10247
10248	10248	SB3997- 285 -LRB103 43686 LNS 77044 b SB3997 - 285 - LRB103 43686 LNS 77044 b
10249	10249	SB3997 - 285 - LRB103 43686 LNS 77044 b
10250	10250	1 data described in paragraph (9) of subsection (g) of this
10251	10251	2 Section, including the proposed adjustment to the
10252	10252	3 utility's return on equity component of its weighted
10253	10253	4 average cost of capital. During the course of the
10254	10254	5 proceeding, each objection shall be stated with
10255	10255	6 particularity and evidence provided in support thereof,
10256	10256	7 after which the utility shall have the opportunity to
10257	10257	8 rebut the evidence. Discovery shall be allowed consistent
10258	10258	9 with the Commission's Rules of Practice, which Rules of
10259	10259	10 Practice shall be enforced by the Commission or the
10260	10260	11 assigned administrative law judge. The Commission shall
10261	10261	12 apply the same evidentiary standards, including, but not
10262	10262	13 limited to, those concerning the prudence and
10263	10263	14 reasonableness of the costs incurred by the utility,
10264	10264	15 during the proceeding as it would apply in a proceeding to
10265	10265	16 review a filing for a general increase in rates under
10266	10266	17 Article IX of this Act. The Commission shall not, however,
10267	10267	18 have the authority in a proceeding under this paragraph
10268	10268	19 (3) to consider or order any changes to the structure or
10269	10269	20 protocols of the energy efficiency formula rate approved
10270	10270	21 under paragraph (2) of this subsection (d). In a
10271	10271	22 proceeding under this paragraph (3), the Commission shall
10272	10272	23 enter its order no later than the earlier of 195 days after
10273	10273	24 the utility's filing of its annual update of cost inputs
10274	10274	25 to the energy efficiency formula rate or December 15. The
10275	10275	26 utility's proposed return on equity calculation, as
10276	10276
10277	10277
10278	10278
10279	10279
10280	10280
10281	10281	SB3997 - 285 - LRB103 43686 LNS 77044 b
10282	10282
10283	10283
10284	10284	SB3997- 286 -LRB103 43686 LNS 77044 b SB3997 - 286 - LRB103 43686 LNS 77044 b
10285	10285	SB3997 - 286 - LRB103 43686 LNS 77044 b
10286	10286	1 described in paragraphs (7) through (9) of subsection (g)
10287	10287	2 of this Section, shall be deemed the final, approved
10288	10288	3 calculation on December 15 of the year in which it is filed
10289	10289	4 unless the Commission enters an order on or before
10290	10290	5 December 15, after notice and hearing, that modifies such
10291	10291	6 calculation consistent with this Section. The Commission's
10292	10292	7 determinations of the prudence and reasonableness of the
10293	10293	8 costs incurred, and determination of such return on equity
10294	10294	9 calculation, for the applicable calendar year shall be
10295	10295	10 final upon entry of the Commission's order and shall not
10296	10296	11 be subject to reopening, reexamination, or collateral
10297	10297	12 attack in any other Commission proceeding, case, docket,
10298	10298	13 order, rule, or regulation; however, nothing in this
10299	10299	14 paragraph (3) shall prohibit a party from petitioning the
10300	10300	15 Commission to rehear or appeal to the courts the order
10301	10301	16 under the provisions of this Act.
10302	10302	17 (e) Beginning on June 1, 2017 (the effective date of
10303	10303	18 Public Act 99-906), a utility subject to the requirements of
10304	10304	19 this Section may elect to defer, as a regulatory asset, up to
10305	10305	20 the full amount of its expenditures incurred under this
10306	10306	21 Section for each annual period, including, but not limited to,
10307	10307	22 any expenditures incurred above the funding level set by
10308	10308	23 subsection (f) of this Section for a given year. The total
10309	10309	24 expenditures deferred as a regulatory asset in a given year
10310	10310	25 shall be amortized and recovered over a period that is equal to
10311	10311	26 the weighted average of the energy efficiency measure lives
10312	10312
10313	10313
10314	10314
10315	10315
10316	10316
10317	10317	SB3997 - 286 - LRB103 43686 LNS 77044 b
10318	10318
10319	10319
10320	10320	SB3997- 287 -LRB103 43686 LNS 77044 b SB3997 - 287 - LRB103 43686 LNS 77044 b
10321	10321	SB3997 - 287 - LRB103 43686 LNS 77044 b
10322	10322	1 implemented for that year that are reflected in the regulatory
10323	10323	2 asset. The unamortized balance shall be recognized as of
10324	10324	3 December 31 for a given year. The utility shall also earn a
10325	10325	4 return on the total of the unamortized balances of all of the
10326	10326	5 energy efficiency regulatory assets, less any deferred taxes
10327	10327	6 related to those unamortized balances, at an annual rate equal
10328	10328	7 to the utility's weighted average cost of capital that
10329	10329	8 includes, based on a year-end capital structure, the utility's
10330	10330	9 actual cost of debt for the applicable calendar year and a cost
10331	10331	10 of equity, which shall be calculated as the sum of the (i) the
10332	10332	11 average for the applicable calendar year of the monthly
10333	10333	12 average yields of 30-year U.S. Treasury bonds published by the
10334	10334	13 Board of Governors of the Federal Reserve System in its weekly
10335	10335	14 H.15 Statistical Release or successor publication; and (ii)
10336	10336	15 580 basis points, including a revenue conversion factor
10337	10337	16 calculated to recover or refund all additional income taxes
10338	10338	17 that may be payable or receivable as a result of that return.
10339	10339	18 Capital investment costs shall be depreciated and recovered
10340	10340	19 over their useful lives consistent with generally accepted
10341	10341	20 accounting principles. The weighted average cost of capital
10342	10342	21 shall be applied to the capital investment cost balance, less
10343	10343	22 any accumulated depreciation and accumulated deferred income
10344	10344	23 taxes, as of December 31 for a given year.
10345	10345	24 When an electric utility creates a regulatory asset under
10346	10346	25 the provisions of this Section, the costs are recovered over a
10347	10347	26 period during which customers also receive a benefit which is
10348	10348
10349	10349
10350	10350
10351	10351
10352	10352
10353	10353	SB3997 - 287 - LRB103 43686 LNS 77044 b
10354	10354
10355	10355
10356	10356	SB3997- 288 -LRB103 43686 LNS 77044 b SB3997 - 288 - LRB103 43686 LNS 77044 b
10357	10357	SB3997 - 288 - LRB103 43686 LNS 77044 b
10358	10358	1 in the public interest. Accordingly, it is the intent of the
10359	10359	2 General Assembly that an electric utility that elects to
10360	10360	3 create a regulatory asset under the provisions of this Section
10361	10361	4 shall recover all of the associated costs as set forth in this
10362	10362	5 Section. After the Commission has approved the prudence and
10363	10363	6 reasonableness of the costs that comprise the regulatory
10364	10364	7 asset, the electric utility shall be permitted to recover all
10365	10365	8 such costs, and the value and recoverability through rates of
10366	10366	9 the associated regulatory asset shall not be limited, altered,
10367	10367	10 impaired, or reduced.
10368	10368	11 (f) Beginning in 2017, each electric utility shall file an
10369	10369	12 energy efficiency plan with the Commission to meet the energy
10370	10370	13 efficiency standards for the next applicable multi-year period
10371	10371	14 beginning January 1 of the year following the filing,
10372	10372	15 according to the schedule set forth in paragraphs (1) through
10373	10373	16 (4) (3) of this subsection (f). If a utility does not file such
10374	10374	17 a plan on or before the applicable filing deadline for the
10375	10375	18 plan, it shall face a penalty of $100,000 per day until the
10376	10376	19 plan is filed.
10377	10377	20 (1) No later than 30 days after June 1, 2017 (the
10378	10378	21 effective date of Public Act 99-906), each electric
10379	10379	22 utility shall file a 4-year energy efficiency plan
10380	10380	23 commencing on January 1, 2018 that is designed to achieve
10381	10381	24 the cumulative persisting annual savings goals specified
10382	10382	25 in paragraphs (1) through (4) of subsection (b-5) of this
10383	10383	26 Section or in paragraphs (1) through (4) of subsection
10384	10384
10385	10385
10386	10386
10387	10387
10388	10388
10389	10389	SB3997 - 288 - LRB103 43686 LNS 77044 b
10390	10390
10391	10391
10392	10392	SB3997- 289 -LRB103 43686 LNS 77044 b SB3997 - 289 - LRB103 43686 LNS 77044 b
10393	10393	SB3997 - 289 - LRB103 43686 LNS 77044 b
10394	10394	1 (b-15) of this Section, as applicable, through
10395	10395	2 implementation of energy efficiency measures; however, the
10396	10396	3 goals may be reduced if the utility's expenditures are
10397	10397	4 limited pursuant to subsection (m) of this Section or, for
10398	10398	5 a utility that serves less than 3,000,000 retail
10399	10399	6 customers, if each of the following conditions are met:
10400	10400	7 (A) the plan's analysis and forecasts of the utility's
10401	10401	8 ability to acquire energy savings demonstrate that
10402	10402	9 achievement of such goals is not cost effective; and (B)
10403	10403	10 the amount of energy savings achieved by the utility as
10404	10404	11 determined by the independent evaluator for the most
10405	10405	12 recent year for which savings have been evaluated
10406	10406	13 preceding the plan filing was less than the average annual
10407	10407	14 amount of savings required to achieve the goals for the
10408	10408	15 applicable 4-year plan period. Except as provided in
10409	10409	16 subsection (m) of this Section, annual increases in
10410	10410	17 cumulative persisting annual savings goals during the
10411	10411	18 applicable 4-year plan period shall not be reduced to
10412	10412	19 amounts that are less than the maximum amount of
10413	10413	20 cumulative persisting annual savings that is forecast to
10414	10414	21 be cost-effectively achievable during the 4-year plan
10415	10415	22 period. The Commission shall review any proposed goal
10416	10416	23 reduction as part of its review and approval of the
10417	10417	24 utility's proposed plan.
10418	10418	25 (2) No later than March 1, 2021, each electric utility
10419	10419	26 shall file a 4-year energy efficiency plan commencing on
10420	10420
10421	10421
10422	10422
10423	10423
10424	10424
10425	10425	SB3997 - 289 - LRB103 43686 LNS 77044 b
10426	10426
10427	10427
10428	10428	SB3997- 290 -LRB103 43686 LNS 77044 b SB3997 - 290 - LRB103 43686 LNS 77044 b
10429	10429	SB3997 - 290 - LRB103 43686 LNS 77044 b
10430	10430	1 January 1, 2022 that is designed to achieve the cumulative
10431	10431	2 persisting annual savings goals specified in paragraphs
10432	10432	3 (5) through (8) of subsection (b-5) of this Section or in
10433	10433	4 paragraphs (5) through (8) of subsection (b-15) of this
10434	10434	5 Section, as applicable, through implementation of energy
10435	10435	6 efficiency measures; however, the goals may be reduced if
10436	10436	7 either (1) clear and convincing evidence demonstrates,
10437	10437	8 through independent analysis, that the expenditure limits
10438	10438	9 in subsection (m) of this Section preclude full
10439	10439	10 achievement of the goals or (2) each of the following
10440	10440	11 conditions are met: (A) the plan's analysis and forecasts
10441	10441	12 of the utility's ability to acquire energy savings
10442	10442	13 demonstrate by clear and convincing evidence and through
10443	10443	14 independent analysis that achievement of such goals is not
10444	10444	15 cost effective; and (B) the amount of energy savings
10445	10445	16 achieved by the utility as determined by the independent
10446	10446	17 evaluator for the most recent year for which savings have
10447	10447	18 been evaluated preceding the plan filing was less than the
10448	10448	19 average annual amount of savings required to achieve the
10449	10449	20 goals for the applicable 4-year plan period. If there is
10450	10450	21 not clear and convincing evidence that achieving the
10451	10451	22 savings goals specified in paragraph (b-5) or (b-15) of
10452	10452	23 this Section is possible both cost-effectively and within
10453	10453	24 the expenditure limits in subsection (m), such savings
10454	10454	25 goals shall not be reduced. Except as provided in
10455	10455	26 subsection (m) of this Section, annual increases in
10456	10456
10457	10457
10458	10458
10459	10459
10460	10460
10461	10461	SB3997 - 290 - LRB103 43686 LNS 77044 b
10462	10462
10463	10463
10464	10464	SB3997- 291 -LRB103 43686 LNS 77044 b SB3997 - 291 - LRB103 43686 LNS 77044 b
10465	10465	SB3997 - 291 - LRB103 43686 LNS 77044 b
10466	10466	1 cumulative persisting annual savings goals during the
10467	10467	2 applicable 4-year plan period shall not be reduced to
10468	10468	3 amounts that are less than the maximum amount of
10469	10469	4 cumulative persisting annual savings that is forecast to
10470	10470	5 be cost-effectively achievable during the 4-year plan
10471	10471	6 period. The Commission shall review any proposed goal
10472	10472	7 reduction as part of its review and approval of the
10473	10473	8 utility's proposed plan.
10474	10474	9 (2.5) The energy efficiency plans of electric
10475	10475	10 utilities that were approved by the Commission for
10476	10476	11 calendar years 2022 through 2025, including any stipulated
10477	10477	12 agreements between the utility and other parties that were
10478	10478	13 approved by the Commission, shall continue to be in force
10479	10479	14 through calendar year 2026. The utilities' savings goals
10480	10480	15 for 2026 shall be the applicable annual savings goals
10481	10481	16 implicit in the growth in cumulative persisting annual
10482	10482	17 savings in paragraphs (b-5) and (b-15) of this Section.
10483	10483	18 (3) No later than March 1, 2026 2025, each electric
10484	10484	19 utility shall file a 3-year 4-year energy efficiency plan
10485	10485	20 commencing on January 1, 2027 2026 that is designed to
10486	10486	21 achieve lifetime savings equal to the product of the
10487	10487	22 incremental annual savings goal and the minimum average
10488	10488	23 savings life defined by subsection (b-16) the cumulative
10489	10489	24 persisting annual savings goals specified in paragraphs
10490	10490	25 (9) through (12) of subsection (b-5) of this Section or in
10491	10491	26 paragraphs (9) through (12) of subsection (b-15) of this
10492	10492
10493	10493
10494	10494
10495	10495
10496	10496
10497	10497	SB3997 - 291 - LRB103 43686 LNS 77044 b
10498	10498
10499	10499
10500	10500	SB3997- 292 -LRB103 43686 LNS 77044 b SB3997 - 292 - LRB103 43686 LNS 77044 b
10501	10501	SB3997 - 292 - LRB103 43686 LNS 77044 b
10502	10502	1 Section, as applicable, through implementation of energy
10503	10503	2 efficiency measures; however, the goals may be reduced if
10504	10504	3 either (1) clear and convincing evidence demonstrates,
10505	10505	4 through independent analysis, that the expenditure limits
10506	10506	5 in subsection (m) of this Section preclude full
10507	10507	6 achievement of the goals or (2) each of the following
10508	10508	7 conditions are met: (A) the plan's analysis and forecasts
10509	10509	8 of the utility's ability to acquire energy savings
10510	10510	9 demonstrate by clear and convincing evidence and through
10511	10511	10 independent analysis that achievement of such goals is not
10512	10512	11 cost effective; and (B) the amount of energy savings
10513	10513	12 achieved by the utility as determined by the independent
10514	10514	13 evaluator for the most recent year for which savings have
10515	10515	14 been evaluated preceding the plan filing was less than the
10516	10516	15 average annual amount of savings required to achieve the
10517	10517	16 goals for the applicable 4-year plan period. If there is
10518	10518	17 not clear and convincing evidence that achieving the
10519	10519	18 savings goals specified in paragraphs (b-5) or (b-15) of
10520	10520	19 this Section is possible both cost-effectively and within
10521	10521	20 the expenditure limits in subsection (m), such savings
10522	10522	21 goals shall not be reduced. Except as provided in
10523	10523	22 subsection (m) of this Section, annual increases in
10524	10524	23 cumulative persisting annual savings goals during the
10525	10525	24 applicable 4-year plan period shall not be reduced to
10526	10526	25 amounts that are less than the maximum amount of
10527	10527	26 cumulative persisting annual savings that is forecast to
10528	10528
10529	10529
10530	10530
10531	10531
10532	10532
10533	10533	SB3997 - 292 - LRB103 43686 LNS 77044 b
10534	10534
10535	10535
10536	10536	SB3997- 293 -LRB103 43686 LNS 77044 b SB3997 - 293 - LRB103 43686 LNS 77044 b
10537	10537	SB3997 - 293 - LRB103 43686 LNS 77044 b
10538	10538	1 be cost-effectively achievable during the 4-year plan
10539	10539	2 period. The Commission shall review any proposed goal
10540	10540	3 reduction as part of its review and approval of the
10541	10541	4 utility's proposed plan.
10542	10542	5 (4) No later than March 1, 2029, and every 4 years
10543	10543	6 thereafter, each electric utility shall file a 4-year
10544	10544	7 energy efficiency plan commencing on January 1, 2030, and
10545	10545	8 every 4 years thereafter, respectively, that is designed
10546	10546	9 to achieve lifetime savings equal to the product of the
10547	10547	10 incremental annual savings goal and the minimum average
10548	10548	11 savings life described in subsection (b-16) the cumulative
10549	10549	12 persisting annual savings goals established by the
10550	10550	13 Illinois Commerce Commission pursuant to direction of
10551	10551	14 subsections (b-5) and (b-15) of this Section, as
10552	10552	15 applicable, through implementation of energy efficiency
10553	10553	16 measures; however, the goals may be reduced if either (1)
10554	10554	17 clear and convincing evidence and independent analysis
10555	10555	18 demonstrates that the expenditure limits in subsection (m)
10556	10556	19 of this Section preclude full achievement of the goals or
10557	10557	20 (2) each of the following conditions are met: (A) the
10558	10558	21 plan's analysis and forecasts of the utility's ability to
10559	10559	22 acquire energy savings demonstrate by clear and convincing
10560	10560	23 evidence and through independent analysis that achievement
10561	10561	24 of such goals is not cost-effective; and (B) the amount of
10562	10562	25 energy savings achieved by the utility as determined by
10563	10563	26 the independent evaluator for the most recent year for
10564	10564
10565	10565
10566	10566
10567	10567
10568	10568
10569	10569	SB3997 - 293 - LRB103 43686 LNS 77044 b
10570	10570
10571	10571
10572	10572	SB3997- 294 -LRB103 43686 LNS 77044 b SB3997 - 294 - LRB103 43686 LNS 77044 b
10573	10573	SB3997 - 294 - LRB103 43686 LNS 77044 b
10574	10574	1 which savings have been evaluated preceding the plan
10575	10575	2 filing was less than the average annual amount of savings
10576	10576	3 required to achieve the goals for the applicable multiyear
10577	10577	4 4-year plan period. If there is not clear and convincing
10578	10578	5 evidence that achieving the savings goals specified in
10579	10579	6 paragraph (b-16) paragraphs (b-5) or (b-15) of this
10580	10580	7 Section is possible both cost-effectively and within the
10581	10581	8 expenditure limits in subsection (m), such savings goals
10582	10582	9 shall not be reduced. Except as provided in subsection (m)
10583	10583	10 of this Section, annual increases in cumulative persisting
10584	10584	11 annual savings goals during the applicable 4-year plan
10585	10585	12 period shall not be reduced to amounts that are less than
10586	10586	13 the maximum amount of cumulative persisting annual savings
10587	10587	14 that is forecast to be cost-effectively achievable during
10588	10588	15 the 4-year plan period. The Commission shall review any
10589	10589	16 proposed goal reduction as part of its review and approval
10590	10590	17 of the utility's proposed plan.
10591	10591	18 Each utility's plan shall set forth the utility's
10592	10592	19 proposals to meet the energy efficiency standards identified
10593	10593	20 in subsection (b-5), or (b-15), or (b-16), as applicable and
10594	10594	21 as such standards may have been modified under this subsection
10595	10595	22 (f), taking into account the unique circumstances of the
10596	10596	23 utility's service territory. For those plans commencing on
10597	10597	24 January 1, 2018, the Commission shall seek public comment on
10598	10598	25 the utility's plan and shall issue an order approving or
10599	10599	26 disapproving each plan no later than 105 days after June 1,
10600	10600
10601	10601
10602	10602
10603	10603
10604	10604
10605	10605	SB3997 - 294 - LRB103 43686 LNS 77044 b
10606	10606
10607	10607
10608	10608	SB3997- 295 -LRB103 43686 LNS 77044 b SB3997 - 295 - LRB103 43686 LNS 77044 b
10609	10609	SB3997 - 295 - LRB103 43686 LNS 77044 b
10610	10610	1 2017 (the effective date of Public Act 99-906). For those
10611	10611	2 plans commencing after December 31, 2021, the Commission shall
10612	10612	3 seek public comment on the utility's plan and shall issue an
10613	10613	4 order approving or disapproving each plan within 6 months
10614	10614	5 after its submission. If the Commission disapproves a plan,
10615	10615	6 the Commission shall, within 30 days, describe in detail the
10616	10616	7 reasons for the disapproval and describe a path by which the
10617	10617	8 utility may file a revised draft of the plan to address the
10618	10618	9 Commission's concerns satisfactorily. If the utility does not
10619	10619	10 refile with the Commission within 60 days, the utility shall
10620	10620	11 be subject to penalties at a rate of $100,000 per day until the
10621	10621	12 plan is filed. This process shall continue, and penalties
10622	10622	13 shall accrue, until the utility has successfully filed a
10623	10623	14 portfolio of energy efficiency and demand-response measures.
10624	10624	15 Penalties shall be deposited into the Energy Efficiency Trust
10625	10625	16 Fund.
10626	10626	17 (g) In submitting proposed plans and funding levels under
10627	10627	18 subsection (f) of this Section to meet the savings goals
10628	10628	19 identified in subsection (b-5), or (b-15), or (b-16) of this
10629	10629	20 Section, as applicable, the utility shall:
10630	10630	21 (1) Demonstrate that its proposed energy efficiency
10631	10631	22 measures will achieve the applicable requirements that are
10632	10632	23 identified in subsection (b-5), or (b-15), or (b-16) of
10633	10633	24 this Section, as modified by subsection (f) of this
10634	10634	25 Section.
10635	10635	26 (2) (Blank).
10636	10636
10637	10637
10638	10638
10639	10639
10640	10640
10641	10641	SB3997 - 295 - LRB103 43686 LNS 77044 b
10642	10642
10643	10643
10644	10644	SB3997- 296 -LRB103 43686 LNS 77044 b SB3997 - 296 - LRB103 43686 LNS 77044 b
10645	10645	SB3997 - 296 - LRB103 43686 LNS 77044 b
10646	10646	1 (2.5) Demonstrate consideration of program options for
10647	10647	2 (A) advancing new building codes, appliance standards, and
10648	10648	3 municipal regulations governing existing and new building
10649	10649	4 efficiency improvements and (B) supporting efforts to
10650	10650	5 improve compliance with new building codes, appliance
10651	10651	6 standards and municipal regulations, as potentially
10652	10652	7 cost-effective means of acquiring energy savings to count
10653	10653	8 toward savings goals.
10654	10654	9 (3) Demonstrate that its overall portfolio of
10655	10655	10 measures, not including low-income programs described in
10656	10656	11 subsection (c) of this Section, is cost-effective using
10657	10657	12 the total resource cost test or complies with paragraphs
10658	10658	13 (1) through (3) of subsection (f) of this Section and
10659	10659	14 represents a diverse cross-section of opportunities for
10660	10660	15 customers of all rate classes, other than those customers
10661	10661	16 described in subsection (l) of this Section, to
10662	10662	17 participate in the programs. Individual measures need not
10663	10663	18 be cost effective.
10664	10664	19 (3.5) Demonstrate that the utility's plan integrates
10665	10665	20 the delivery of energy efficiency programs with natural
10666	10666	21 gas efficiency programs, programs promoting distributed
10667	10667	22 solar, programs promoting demand response and other
10668	10668	23 efforts to address bill payment issues, including, but not
10669	10669	24 limited to, LIHEAP and the Percentage of Income Payment
10670	10670	25 Plan, to the extent such integration is practical and has
10671	10671	26 the potential to enhance customer engagement, minimize
10672	10672
10673	10673
10674	10674
10675	10675
10676	10676
10677	10677	SB3997 - 296 - LRB103 43686 LNS 77044 b
10678	10678
10679	10679
10680	10680	SB3997- 297 -LRB103 43686 LNS 77044 b SB3997 - 297 - LRB103 43686 LNS 77044 b
10681	10681	SB3997 - 297 - LRB103 43686 LNS 77044 b
10682	10682	1 market confusion, or reduce administrative costs.
10683	10683	2 (4) Present a third-party energy efficiency
10684	10684	3 implementation program subject to the following
10685	10685	4 requirements:
10686	10686	5 (A) beginning with the year commencing January 1,
10687	10687	6 2019, electric utilities that serve more than
10688	10688	7 3,000,000 retail customers in the State shall fund
10689	10689	8 third-party energy efficiency programs in an amount
10690	10690	9 that is no less than $25,000,000 per year, and
10691	10691	10 electric utilities that serve less than 3,000,000
10692	10692	11 retail customers but more than 500,000 retail
10693	10693	12 customers in the State shall fund third-party energy
10694	10694	13 efficiency programs in an amount that is no less than
10695	10695	14 $8,350,000 per year;
10696	10696	15 (B) during 2018, the utility shall conduct a
10697	10697	16 solicitation process for purposes of requesting
10698	10698	17 proposals from third-party vendors for those
10699	10699	18 third-party energy efficiency programs to be offered
10700	10700	19 during one or more of the years commencing January 1,
10701	10701	20 2019, January 1, 2020, and January 1, 2021; for those
10702	10702	21 multi-year plans commencing on January 1, 2022 and
10703	10703	22 January 1, 2026, the utility shall conduct a
10704	10704	23 solicitation process during 2021 and 2025,
10705	10705	24 respectively, for purposes of requesting proposals
10706	10706	25 from third-party vendors for those third-party energy
10707	10707	26 efficiency programs to be offered during one or more
10708	10708
10709	10709
10710	10710
10711	10711
10712	10712
10713	10713	SB3997 - 297 - LRB103 43686 LNS 77044 b
10714	10714
10715	10715
10716	10716	SB3997- 298 -LRB103 43686 LNS 77044 b SB3997 - 298 - LRB103 43686 LNS 77044 b
10717	10717	SB3997 - 298 - LRB103 43686 LNS 77044 b
10718	10718	1 years of the respective multi-year plan period; for
10719	10719	2 each solicitation process, the utility shall identify
10720	10720	3 the sector, technology, or geographical area for which
10721	10721	4 it is seeking requests for proposals; the solicitation
10722	10722	5 process must be either for programs that fill gaps in
10723	10723	6 the utility's program portfolio and for programs that
10724	10724	7 target low-income customers, business sectors,
10725	10725	8 building types, geographies, or other specific parts
10726	10726	9 of its customer base with initiatives that would be
10727	10727	10 more effective at reaching these customer segments
10728	10728	11 than the utilities' programs filed in its energy
10729	10729	12 efficiency plans;
10730	10730	13 (C) the utility shall propose the bidder
10731	10731	14 qualifications, performance measurement process, and
10732	10732	15 contract structure, which must include a performance
10733	10733	16 payment mechanism and general terms and conditions;
10734	10734	17 the proposed qualifications, process, and structure
10735	10735	18 shall be subject to Commission approval; and
10736	10736	19 (D) the utility shall retain an independent third
10737	10737	20 party to score the proposals received through the
10738	10738	21 solicitation process described in this paragraph (4),
10739	10739	22 rank them according to their cost per lifetime
10740	10740	23 kilowatt-hours saved, and assemble the portfolio of
10741	10741	24 third-party programs.
10742	10742	25 The electric utility shall recover all costs
10743	10743	26 associated with Commission-approved, third-party
10744	10744
10745	10745
10746	10746
10747	10747
10748	10748
10749	10749	SB3997 - 298 - LRB103 43686 LNS 77044 b
10750	10750
10751	10751
10752	10752	SB3997- 299 -LRB103 43686 LNS 77044 b SB3997 - 299 - LRB103 43686 LNS 77044 b
10753	10753	SB3997 - 299 - LRB103 43686 LNS 77044 b
10754	10754	1 administered programs regardless of the success of those
10755	10755	2 programs.
10756	10756	3 (4.5) Implement cost-effective demand-response
10757	10757	4 measures to reduce peak demand by 0.1% over the prior year
10758	10758	5 for eligible retail customers, as defined in Section
10759	10759	6 16-111.5 of this Act, and for customers that elect hourly
10760	10760	7 service from the utility pursuant to Section 16-107 of
10761	10761	8 this Act, provided those customers have not been declared
10762	10762	9 competitive. This requirement continues until December 31,
10763	10763	10 2026.
10764	10764	11 (5) Include a proposed or revised cost-recovery tariff
10765	10765	12 mechanism, as provided for under subsection (d) of this
10766	10766	13 Section, to fund the proposed energy efficiency and
10767	10767	14 demand-response measures and to ensure the recovery of the
10768	10768	15 prudently and reasonably incurred costs of
10769	10769	16 Commission-approved programs.
10770	10770	17 (6) Provide for an annual independent evaluation of
10771	10771	18 the performance of the cost-effectiveness of the utility's
10772	10772	19 portfolio of measures, as well as a full review of the
10773	10773	20 multi-year plan results of the broader net program impacts
10774	10774	21 and, to the extent practical, for adjustment of the
10775	10775	22 measures on a going-forward basis as a result of the
10776	10776	23 evaluations. The resources dedicated to evaluation shall
10777	10777	24 not exceed 3% of portfolio resources in any given year.
10778	10778	25 (7) For electric utilities that serve more than
10779	10779	26 3,000,000 retail customers in the State:
10780	10780
10781	10781
10782	10782
10783	10783
10784	10784
10785	10785	SB3997 - 299 - LRB103 43686 LNS 77044 b
10786	10786
10787	10787
10788	10788	SB3997- 300 -LRB103 43686 LNS 77044 b SB3997 - 300 - LRB103 43686 LNS 77044 b
10789	10789	SB3997 - 300 - LRB103 43686 LNS 77044 b
10790	10790	1 (A) Through December 31, 2025, provide for an
10791	10791	2 adjustment to the return on equity component of the
10792	10792	3 utility's weighted average cost of capital calculated
10793	10793	4 under subsection (d) of this Section:
10794	10794	5 (i) If the independent evaluator determines
10795	10795	6 that the utility achieved a cumulative persisting
10796	10796	7 annual savings that is less than the applicable
10797	10797	8 annual incremental goal, then the return on equity
10798	10798	9 component shall be reduced by a maximum of 200
10799	10799	10 basis points in the event that the utility
10800	10800	11 achieved no more than 75% of such goal. If the
10801	10801	12 utility achieved more than 75% of the applicable
10802	10802	13 annual incremental goal but less than 100% of such
10803	10803	14 goal, then the return on equity component shall be
10804	10804	15 reduced by 8 basis points for each percent by
10805	10805	16 which the utility failed to achieve the goal.
10806	10806	17 (ii) If the independent evaluator determines
10807	10807	18 that the utility achieved a cumulative persisting
10808	10808	19 annual savings that is more than the applicable
10809	10809	20 annual incremental goal, then the return on equity
10810	10810	21 component shall be increased by a maximum of 200
10811	10811	22 basis points in the event that the utility
10812	10812	23 achieved at least 125% of such goal. If the
10813	10813	24 utility achieved more than 100% of the applicable
10814	10814	25 annual incremental goal but less than 125% of such
10815	10815	26 goal, then the return on equity component shall be
10816	10816
10817	10817
10818	10818
10819	10819
10820	10820
10821	10821	SB3997 - 300 - LRB103 43686 LNS 77044 b
10822	10822
10823	10823
10824	10824	SB3997- 301 -LRB103 43686 LNS 77044 b SB3997 - 301 - LRB103 43686 LNS 77044 b
10825	10825	SB3997 - 301 - LRB103 43686 LNS 77044 b
10826	10826	1 increased by 8 basis points for each percent by
10827	10827	2 which the utility achieved above the goal. If the
10828	10828	3 applicable annual incremental goal was reduced
10829	10829	4 under paragraph (1) or (2) of subsection (f) of
10830	10830	5 this Section, then the following adjustments shall
10831	10831	6 be made to the calculations described in this item
10832	10832	7 (ii):
10833	10833	8 (aa) the calculation for determining
10834	10834	9 achievement that is at least 125% of the
10835	10835	10 applicable annual incremental goal shall use
10836	10836	11 the unreduced applicable annual incremental
10837	10837	12 goal to set the value; and
10838	10838	13 (bb) the calculation for determining
10839	10839	14 achievement that is less than 125% but more
10840	10840	15 than 100% of the applicable annual incremental
10841	10841	16 goal shall use the reduced applicable annual
10842	10842	17 incremental goal to set the value for 100%
10843	10843	18 achievement of the goal and shall use the
10844	10844	19 unreduced goal to set the value for 125%
10845	10845	20 achievement. The 8 basis point value shall
10846	10846	21 also be modified, as necessary, so that the
10847	10847	22 200 basis points are evenly apportioned among
10848	10848	23 each percentage point value between 100% and
10849	10849	24 125% achievement.
10850	10850	25 (B) For the period January 1, 2026 through
10851	10851	26 December 31, 2029 and in all subsequent 4-year
10852	10852
10853	10853
10854	10854
10855	10855
10856	10856
10857	10857	SB3997 - 301 - LRB103 43686 LNS 77044 b
10858	10858
10859	10859
10860	10860	SB3997- 302 -LRB103 43686 LNS 77044 b SB3997 - 302 - LRB103 43686 LNS 77044 b
10861	10861	SB3997 - 302 - LRB103 43686 LNS 77044 b
10862	10862	1 periods, provide for an adjustment to the return on
10863	10863	2 equity component of the utility's weighted average
10864	10864	3 cost of capital calculated under subsection (d) of
10865	10865	4 this Section:
10866	10866	5 (i) If the product of the incremental annual
10867	10867	6 savings goal and minimum average savings life
10868	10868	7 specified in subsection (b-16) of this Section is
10869	10869	8 unmodified, and if the independent evaluator
10870	10870	9 determines that the utility achieved lifetime
10871	10871	10 energy savings that are less than the product of
10872	10872	11 the incremental annual savings goal and minimum
10873	10873	12 average savings life specified in subsection
10874	10874	13 (b-16) of this Section, then the return on equity
10875	10875	14 component shall be reduced by a maximum of 200
10876	10876	15 basis points if the utility achieved no more than
10877	10877	16 66.67% of the lifetime savings goal. If the
10878	10878	17 utility achieved more than 66.67% but less than
10879	10879	18 100% of the goal, then the return on equity
10880	10880	19 component shall be reduced by 6 basis points for
10881	10881	20 each percent by which the utility failed to
10882	10882	21 achieve the goal. If the independent evaluator
10883	10883	22 determines that the utility achieved a cumulative
10884	10884	23 persisting annual savings that is less than the
10885	10885	24 applicable annual incremental goal, then the
10886	10886	25 return on equity component shall be reduced by a
10887	10887	26 maximum of 200 basis points in the event that the
10888	10888
10889	10889
10890	10890
10891	10891
10892	10892
10893	10893	SB3997 - 302 - LRB103 43686 LNS 77044 b
10894	10894
10895	10895
10896	10896	SB3997- 303 -LRB103 43686 LNS 77044 b SB3997 - 303 - LRB103 43686 LNS 77044 b
10897	10897	SB3997 - 303 - LRB103 43686 LNS 77044 b
10898	10898	1 utility achieved no more than 66% of such goal. If
10899	10899	2 the utility achieved more than 66% of the
10900	10900	3 applicable annual incremental goal but less than
10901	10901	4 100% of such goal, then the return on equity
10902	10902	5 component shall be reduced by 6 basis points for
10903	10903	6 each percent by which the utility failed to
10904	10904	7 achieve the goal.
10905	10905	8 (ii) If the product of the incremental annual
10906	10906	9 savings goal and the minimum average savings life
10907	10907	10 specified in subsection (b-16) of this Section is
10908	10908	11 unmodified, and if the independent evaluator
10909	10909	12 determines that the utility achieved lifetime
10910	10910	13 energy savings that are more than the product of
10911	10911	14 the incremental annual savings goal and minimum
10912	10912	15 average savings life specified in subsection
10913	10913	16 (b-16) of this Section, then the return on equity
10914	10914	17 component shall be increased by a maximum of 200
10915	10915	18 basis points if the utility achieved at least
10916	10916	19 133.33% of such lifetime savings goal. If the
10917	10917	20 utility achieved more than 100% but less than
10918	10918	21 133.33% of the goal, then the return on equity
10919	10919	22 component shall be increased by 6 basis points for
10920	10920	23 each percent by which the utility exceeded the
10921	10921	24 goal. If the independent evaluator determines that
10922	10922	25 the utility achieved a cumulative persisting
10923	10923	26 annual savings that is more than the applicable
10924	10924
10925	10925
10926	10926
10927	10927
10928	10928
10929	10929	SB3997 - 303 - LRB103 43686 LNS 77044 b
10930	10930
10931	10931
10932	10932	SB3997- 304 -LRB103 43686 LNS 77044 b SB3997 - 304 - LRB103 43686 LNS 77044 b
10933	10933	SB3997 - 304 - LRB103 43686 LNS 77044 b
10934	10934	1 annual incremental goal, then the return on equity
10935	10935	2 component shall be increased by a maximum of 200
10936	10936	3 basis points in the event that the utility
10937	10937	4 achieved at least 134% of such goal. If the
10938	10938	5 utility achieved more than 100% of the applicable
10939	10939	6 annual incremental goal but less than 134% of such
10940	10940	7 goal, then the return on equity component shall be
10941	10941	8 increased by 6 basis points for each percent by
10942	10942	9 which the utility achieved above the goal. If the
10943	10943	10 applicable annual incremental goal was reduced
10944	10944	11 under paragraph (3) of subsection (f) of this
10945	10945	12 Section, then the following adjustments shall be
10946	10946	13 made to the calculations described in this item
10947	10947	14 (ii):
10948	10948	15 (aa) the calculation for determining
10949	10949	16 achievement that is at least 134% of the
10950	10950	17 applicable annual incremental goal shall use
10951	10951	18 the unreduced applicable annual incremental
10952	10952	19 goal to set the value; and
10953	10953	20 (bb) the calculation for determining
10954	10954	21 achievement that is less than 134% but more
10955	10955	22 than 100% of the applicable annual incremental
10956	10956	23 goal shall use the reduced applicable annual
10957	10957	24 incremental goal to set the value for 100%
10958	10958	25 achievement of the goal and shall use the
10959	10959	26 unreduced goal to set the value for 134%
10960	10960
10961	10961
10962	10962
10963	10963
10964	10964
10965	10965	SB3997 - 304 - LRB103 43686 LNS 77044 b
10966	10966
10967	10967
10968	10968	SB3997- 305 -LRB103 43686 LNS 77044 b SB3997 - 305 - LRB103 43686 LNS 77044 b
10969	10969	SB3997 - 305 - LRB103 43686 LNS 77044 b
10970	10970	1 achievement. The 6 basis point value shall
10971	10971	2 also be modified, as necessary, so that the
10972	10972	3 200 basis points are evenly apportioned among
10973	10973	4 each percentage point value between 100% and
10974	10974	5 134% achievement.
10975	10975	6 (iii) If the product of the incremental annual
10976	10976	7 savings goal and minimum average savings life
10977	10977	8 specified in subsection (b-16) of this Section is
10978	10978	9 reduced under paragraph (4) of subsection (f),
10979	10979	10 then the return on equity shall be reduced by 10
10980	10980	11 basis points for every percent by which the
10981	10981	12 utility fails to achieve the modified goal, up to
10982	10982	13 a maximum of a 200 basis point reduction for
10983	10983	14 achieving 80% or less of the modified lifetime
10984	10984	15 savings goal.
10985	10985	16 (iv) If the product of the incremental annual
10986	10986	17 savings goal and minimum average savings life
10987	10987	18 specified in subsection (b-16) of this Section is
10988	10988	19 reduced under paragraph (4) of subsection (f), the
10989	10989	20 return on equity component shall be increased by a
10990	10990	21 maximum of 200 basis points if the utility
10991	10991	22 achieved at least 133.33% of the unmodified
10992	10992	23 lifetime savings goal. If the utility achieved
10993	10993	24 more than 100% of the modified goal but less than
10994	10994	25 133.33% of the unmodified goal, then the return on
10995	10995	26 equity component shall be linearly interpolated
10996	10996
10997	10997
10998	10998
10999	10999
11000	11000
11001	11001	SB3997 - 305 - LRB103 43686 LNS 77044 b
11002	11002
11003	11003
11004	11004	SB3997- 306 -LRB103 43686 LNS 77044 b SB3997 - 306 - LRB103 43686 LNS 77044 b
11005	11005	SB3997 - 306 - LRB103 43686 LNS 77044 b
11006	11006	1 between a 0% increase for meeting 100% of the
11007	11007	2 modified goal and a 200 basis point increase for
11008	11008	3 achieving 133.33% of the unmodified goal.
11009	11009	4 (C) Notwithstanding the provisions of
11010	11010	5 subparagraphs (A) and (B) of this paragraph (7), if
11011	11011	6 the applicable annual incremental goal for an electric
11012	11012	7 utility is ever less than 0.6% of deemed average
11013	11013	8 weather normalized sales of electric power and energy
11014	11014	9 during calendar years 2014, 2015, and 2016, an
11015	11015	10 adjustment to the return on equity component of the
11016	11016	11 utility's weighted average cost of capital calculated
11017	11017	12 under subsection (d) of this Section shall be made as
11018	11018	13 follows:
11019	11019	14 (i) If the independent evaluator determines
11020	11020	15 that the utility achieved a cumulative persisting
11021	11021	16 annual savings that is less than would have been
11022	11022	17 achieved had the applicable annual incremental
11023	11023	18 goal been achieved, then the return on equity
11024	11024	19 component shall be reduced by a maximum of 200
11025	11025	20 basis points if the utility achieved no more than
11026	11026	21 75% of its applicable annual total savings
11027	11027	22 requirement as defined in paragraph (7.5) of this
11028	11028	23 subsection. If the utility achieved more than 75%
11029	11029	24 of the applicable annual total savings requirement
11030	11030	25 but less than 100% of such goal, then the return on
11031	11031	26 equity component shall be reduced by 8 basis
11032	11032
11033	11033
11034	11034
11035	11035
11036	11036
11037	11037	SB3997 - 306 - LRB103 43686 LNS 77044 b
11038	11038
11039	11039
11040	11040	SB3997- 307 -LRB103 43686 LNS 77044 b SB3997 - 307 - LRB103 43686 LNS 77044 b
11041	11041	SB3997 - 307 - LRB103 43686 LNS 77044 b
11042	11042	1 points for each percent by which the utility
11043	11043	2 failed to achieve the goal.
11044	11044	3 (ii) If the independent evaluator determines
11045	11045	4 that the utility achieved a cumulative persisting
11046	11046	5 annual savings that is more than would have been
11047	11047	6 achieved had the applicable annual incremental
11048	11048	7 goal been achieved, then the return on equity
11049	11049	8 component shall be increased by a maximum of 200
11050	11050	9 basis points if the utility achieved at least 125%
11051	11051	10 of its applicable annual total savings
11052	11052	11 requirement. If the utility achieved more than
11053	11053	12 100% of the applicable annual total savings
11054	11054	13 requirement but less than 125% of such goal, then
11055	11055	14 the return on equity component shall be increased
11056	11056	15 by 8 basis points for each percent by which the
11057	11057	16 utility achieved above the applicable annual total
11058	11058	17 savings requirement. If the applicable annual
11059	11059	18 incremental goal was reduced under paragraph (1)
11060	11060	19 or (2) of subsection (f) of this Section, then the
11061	11061	20 following adjustments shall be made to the
11062	11062	21 calculations described in this item (ii):
11063	11063	22 (aa) the calculation for determining
11064	11064	23 achievement that is at least 125% of the
11065	11065	24 applicable annual total savings requirement
11066	11066	25 shall use the unreduced applicable annual
11067	11067	26 incremental goal to set the value; and
11068	11068
11069	11069
11070	11070
11071	11071
11072	11072
11073	11073	SB3997 - 307 - LRB103 43686 LNS 77044 b
11074	11074
11075	11075
11076	11076	SB3997- 308 -LRB103 43686 LNS 77044 b SB3997 - 308 - LRB103 43686 LNS 77044 b
11077	11077	SB3997 - 308 - LRB103 43686 LNS 77044 b
11078	11078	1 (bb) the calculation for determining
11079	11079	2 achievement that is less than 125% but more
11080	11080	3 than 100% of the applicable annual total
11081	11081	4 savings requirement shall use the reduced
11082	11082	5 applicable annual incremental goal to set the
11083	11083	6 value for 100% achievement of the goal and
11084	11084	7 shall use the unreduced goal to set the value
11085	11085	8 for 125% achievement. The 8 basis point value
11086	11086	9 shall also be modified, as necessary, so that
11087	11087	10 the 200 basis points are evenly apportioned
11088	11088	11 among each percentage point value between 100%
11089	11089	12 and 125% achievement.
11090	11090	13 (7.5) For purposes of this Section, the term
11091	11091	14 "applicable annual incremental goal" means the difference
11092	11092	15 between the cumulative persisting annual savings goal for
11093	11093	16 the calendar year that is the subject of the independent
11094	11094	17 evaluator's determination and the cumulative persisting
11095	11095	18 annual savings goal for the immediately preceding calendar
11096	11096	19 year, as such goals are defined in subsections (b-5) and
11097	11097	20 (b-15) of this Section and as these goals may have been
11098	11098	21 modified as provided for under subsection (b-20) and
11099	11099	22 paragraphs (1) and (2) through (3) of subsection (f) of
11100	11100	23 this Section. Under subsections (b), (b-5), (b-10), and
11101	11101	24 (b-15) of this Section, a utility must first replace
11102	11102	25 energy savings from measures that have expired before any
11103	11103	26 progress towards achievement of its applicable annual
11104	11104
11105	11105
11106	11106
11107	11107
11108	11108
11109	11109	SB3997 - 308 - LRB103 43686 LNS 77044 b
11110	11110
11111	11111
11112	11112	SB3997- 309 -LRB103 43686 LNS 77044 b SB3997 - 309 - LRB103 43686 LNS 77044 b
11113	11113	SB3997 - 309 - LRB103 43686 LNS 77044 b
11114	11114	1 incremental goal may be counted. Savings may expire
11115	11115	2 because measures installed in previous years have reached
11116	11116	3 the end of their lives, because measures installed in
11117	11117	4 previous years are producing lower savings in the current
11118	11118	5 year than in the previous year, or for other reasons
11119	11119	6 identified by independent evaluators. Notwithstanding
11120	11120	7 anything else set forth in this Section, the difference
11121	11121	8 between the actual annual incremental savings achieved in
11122	11122	9 any given year, including the replacement of energy
11123	11123	10 savings that have expired, and the applicable annual
11124	11124	11 incremental goal shall not affect adjustments to the
11125	11125	12 return on equity for subsequent calendar years under this
11126	11126	13 subsection (g).
11127	11127	14 In this Section, "applicable annual total savings
11128	11128	15 requirement" means the total amount of new annual savings
11129	11129	16 that the utility must achieve in any given year to achieve
11130	11130	17 the applicable annual incremental goal. This is equal to
11131	11131	18 the applicable annual incremental goal plus the total new
11132	11132	19 annual savings that are required to replace savings that
11133	11133	20 expired in or at the end of the previous year.
11134	11134	21 (8) For electric utilities that serve less than
11135	11135	22 3,000,000 retail customers but more than 500,000 retail
11136	11136	23 customers in the State:
11137	11137	24 (A) Through December 31, 2026 2025, the applicable
11138	11138	25 annual incremental goal shall be compared to the
11139	11139	26 annual incremental savings as determined by the
11140	11140
11141	11141
11142	11142
11143	11143
11144	11144
11145	11145	SB3997 - 309 - LRB103 43686 LNS 77044 b
11146	11146
11147	11147
11148	11148	SB3997- 310 -LRB103 43686 LNS 77044 b SB3997 - 310 - LRB103 43686 LNS 77044 b
11149	11149	SB3997 - 310 - LRB103 43686 LNS 77044 b
11150	11150	1 independent evaluator.
11151	11151	2 (i) The return on equity component shall be
11152	11152	3 reduced by 8 basis points for each percent by
11153	11153	4 which the utility did not achieve 84.4% of the
11154	11154	5 applicable annual incremental goal.
11155	11155	6 (ii) The return on equity component shall be
11156	11156	7 increased by 8 basis points for each percent by
11157	11157	8 which the utility exceeded 100% of the applicable
11158	11158	9 annual incremental goal.
11159	11159	10 (iii) The return on equity component shall not
11160	11160	11 be increased or decreased if the annual
11161	11161	12 incremental savings as determined by the
11162	11162	13 independent evaluator is greater than 84.4% of the
11163	11163	14 applicable annual incremental goal and less than
11164	11164	15 100% of the applicable annual incremental goal.
11165	11165	16 (iv) The return on equity component shall not
11166	11166	17 be increased or decreased by an amount greater
11167	11167	18 than 200 basis points pursuant to this
11168	11168	19 subparagraph (A).
11169	11169	20 (B) For the period of January 1, 2027 2026 through
11170	11170	21 December 31, 2029, provide for an adjustment to the
11171	11171	22 return on equity component of the utility's weighted
11172	11172	23 average cost of capital calculated under subsection
11173	11173	24 (d) of this Section: and in all subsequent 4-year
11174	11174	25 periods, the applicable annual incremental goal shall
11175	11175	26 be compared to the annual incremental savings as
11176	11176
11177	11177
11178	11178
11179	11179
11180	11180
11181	11181	SB3997 - 310 - LRB103 43686 LNS 77044 b
11182	11182
11183	11183
11184	11184	SB3997- 311 -LRB103 43686 LNS 77044 b SB3997 - 311 - LRB103 43686 LNS 77044 b
11185	11185	SB3997 - 311 - LRB103 43686 LNS 77044 b
11186	11186	1 determined by the independent evaluator.
11187	11187	2 (i) The return on equity component shall be
11188	11188	3 reduced by 6 basis points for each percent by
11189	11189	4 which the utility did not achieve 85% 100% of the
11190	11190	5 lifetime savings that is the product of the
11191	11191	6 incremental annual savings goal and the minimum
11192	11192	7 average savings life specified in subsection
11193	11193	8 (b-16) of this Section, up to a maximum reduction
11194	11194	9 of 200 basis points for achieving 51.67% or less
11195	11195	10 of the lifetime savings goal applicable annual
11196	11196	11 incremental goal.
11197	11197	12 (ii) The return on equity component shall be
11198	11198	13 increased by 6 basis points for each percent by
11199	11199	14 which the utility exceeded 100% of the lifetime
11200	11200	15 savings that is the product of the incremental
11201	11201	16 annual savings goal and the minimum average
11202	11202	17 savings life specified in subsection (b-16) of
11203	11203	18 this Section, up to a maximum increase of 200
11204	11204	19 basis points for achieving 133.33% or more of the
11205	11205	20 lifetime savings goal applicable annual
11206	11206	21 incremental goal.
11207	11207	22 (iii) The return on equity component shall not
11208	11208	23 be increased or decreased by an amount greater
11209	11209	24 than 200 basis points pursuant to this
11210	11210	25 subparagraph (B).
11211	11211	26 (C) For the period of January 1, 2030 through
11212	11212
11213	11213
11214	11214
11215	11215
11216	11216
11217	11217	SB3997 - 311 - LRB103 43686 LNS 77044 b
11218	11218
11219	11219
11220	11220	SB3997- 312 -LRB103 43686 LNS 77044 b SB3997 - 312 - LRB103 43686 LNS 77044 b
11221	11221	SB3997 - 312 - LRB103 43686 LNS 77044 b
11222	11222	1 December 31, 2033, provide for an adjustment to the
11223	11223	2 return on equity component of the utility's weighted
11224	11224	3 average cost of capital calculated under subsection
11225	11225	4 (d) of this Section:
11226	11226	5 (i) If the product of the incremental annual
11227	11227	6 savings goal and minimum average savings life
11228	11228	7 specified in subsection (b-16) of this Section is
11229	11229	8 unmodified, and if the independent evaluator
11230	11230	9 determines that the utility achieved lifetime
11231	11231	10 energy savings that are less than 95% of the
11232	11232	11 product of the incremental annual savings goal and
11233	11233	12 minimum average savings life specified in
11234	11234	13 subsection (b-16) of this Section, the return on
11235	11235	14 equity component shall be reduced by 3 basis
11236	11236	15 points for each percent by which the utility did
11237	11237	16 not achieve 95% of the lifetime savings goal, plus
11238	11238	17 an additional 3 basis point reduction for each
11239	11239	18 percent by which the utility did not achieve 90%
11240	11240	19 of the lifetime savings goal, up to a maximum
11241	11241	20 reduction of 200 basis points for achieving 59.17%
11242	11242	21 or less of the lifetime savings goal.
11243	11243	22 (ii) If the product of the incremental annual
11244	11244	23 savings goal and minimum average savings life
11245	11245	24 specified in subsection (b-16) of this Section is
11246	11246	25 unmodified, and if the independent evaluator
11247	11247	26 determines that the utility achieved lifetime
11248	11248
11249	11249
11250	11250
11251	11251
11252	11252
11253	11253	SB3997 - 312 - LRB103 43686 LNS 77044 b
11254	11254
11255	11255
11256	11256	SB3997- 313 -LRB103 43686 LNS 77044 b SB3997 - 313 - LRB103 43686 LNS 77044 b
11257	11257	SB3997 - 313 - LRB103 43686 LNS 77044 b
11258	11258	1 energy savings that are greater than the product
11259	11259	2 of the incremental annual savings goal and minimum
11260	11260	3 average savings life specified in subsection
11261	11261	4 (b-16) of this Section, the return on equity
11262	11262	5 component shall be increased by 6 basis points for
11263	11263	6 each percent by which the utility exceeded 100% of
11264	11264	7 the lifetime savings goal, up to a maximum
11265	11265	8 increase of 200 basis points for achieving 133.33%
11266	11266	9 or more of the lifetime savings goal.
11267	11267	10 (iii) If the product of the incremental annual
11268	11268	11 savings goal and minimum average savings life
11269	11269	12 specified in subsection (b-16) of this Section is
11270	11270	13 reduced under paragraph (4) of subsection (f), the
11271	11271	14 return on equity component shall be reduced by 10
11272	11272	15 basis points for every percent by which the
11273	11273	16 utility fails to achieve the modified lifetime
11274	11274	17 savings goal, up to a maximum of a 200 basis point
11275	11275	18 reduction for achieving 80% or less of the
11276	11276	19 modified goal.
11277	11277	20 (iv) If the product of the incremental annual
11278	11278	21 savings goal and minimum average savings life
11279	11279	22 specified in subsection (b-16) of this Section is
11280	11280	23 reduced under paragraph (4) of subsection (f), the
11281	11281	24 return on equity component shall be increased by a
11282	11282	25 maximum of 200 basis points if the utility
11283	11283	26 achieved at least 133.33% of the unmodified
11284	11284
11285	11285
11286	11286
11287	11287
11288	11288
11289	11289	SB3997 - 313 - LRB103 43686 LNS 77044 b
11290	11290
11291	11291
11292	11292	SB3997- 314 -LRB103 43686 LNS 77044 b SB3997 - 314 - LRB103 43686 LNS 77044 b
11293	11293	SB3997 - 314 - LRB103 43686 LNS 77044 b
11294	11294	1 lifetime savings goal. If the utility achieved
11295	11295	2 more than 100% of the modified goal but less than
11296	11296	3 133.33% of the unmodified goal, then the return on
11297	11297	4 equity component shall be linearly interpolated
11298	11298	5 between a 0% increase for meeting 100% of the
11299	11299	6 modified goal and a 200 basis point increase for
11300	11300	7 achieving 133.33% of the unmodified goal.
11301	11301	8 (D) For the period of January 1, 2034 through
11302	11302	9 December 31, 2037, as well as for all subsequent
11303	11303	10 four-year plan periods, provide for an adjustment to
11304	11304	11 the return on equity component of the utility's
11305	11305	12 weighted average cost of capital calculated under
11306	11306	13 subsection (d) of this Section:
11307	11307	14 (i) If the product of the incremental annual
11308	11308	15 savings goal and minimum average savings life
11309	11309	16 specified in subsection (b-16) of this Section is
11310	11310	17 unmodified, and if the independent evaluator
11311	11311	18 determines that the utility achieved lifetime
11312	11312	19 energy savings that is less than 100% of the
11313	11313	20 product of the incremental annual savings goal and
11314	11314	21 minimum average savings life specified in
11315	11315	22 subsection (b-16) of this Section, the return on
11316	11316	23 equity component shall be reduced by 6 basis
11317	11317	24 points for each percent by which the utility did
11318	11318	25 not achieve 100% of the lifetime savings goal, up
11319	11319	26 to a maximum reduction of 200 basis points for
11320	11320
11321	11321
11322	11322
11323	11323
11324	11324
11325	11325	SB3997 - 314 - LRB103 43686 LNS 77044 b
11326	11326
11327	11327
11328	11328	SB3997- 315 -LRB103 43686 LNS 77044 b SB3997 - 315 - LRB103 43686 LNS 77044 b
11329	11329	SB3997 - 315 - LRB103 43686 LNS 77044 b
11330	11330	1 achieving 66.67% or less of the lifetime savings
11331	11331	2 goal.
11332	11332	3 (ii) If the product of the incremental annual
11333	11333	4 savings goal and minimum average savings life
11334	11334	5 specified in subsection (b-16) of this Section is
11335	11335	6 unmodified, and if the independent evaluator
11336	11336	7 determines that the utility achieved lifetime
11337	11337	8 energy savings that is greater than the product of
11338	11338	9 the incremental annual savings goal and minimum
11339	11339	10 average savings life specified in subsection
11340	11340	11 (b-16) of this Section, the return on equity
11341	11341	12 component shall be increased by 6 basis points for
11342	11342	13 each percent by which the utility exceeded 100% of
11343	11343	14 the lifetime savings goal, up to a maximum
11344	11344	15 increase of 200 basis points for achieving 133.33%
11345	11345	16 or more of the lifetime savings goal.
11346	11346	17 (iii) If the product of the incremental annual
11347	11347	18 savings goal and minimum average savings life
11348	11348	19 specified in subsection (b-16) of this Section is
11349	11349	20 reduced under paragraph (4) of subsection (f),
11350	11350	21 then the return on equity shall be reduced by 10
11351	11351	22 basis points for every percent by which the
11352	11352	23 utility fails to achieve the modified lifetime
11353	11353	24 savings goal, up to a maximum of a 200 basis point
11354	11354	25 reduction for achieving 80% or less of the
11355	11355	26 modified goal.
11356	11356
11357	11357
11358	11358
11359	11359
11360	11360
11361	11361	SB3997 - 315 - LRB103 43686 LNS 77044 b
11362	11362
11363	11363
11364	11364	SB3997- 316 -LRB103 43686 LNS 77044 b SB3997 - 316 - LRB103 43686 LNS 77044 b
11365	11365	SB3997 - 316 - LRB103 43686 LNS 77044 b
11366	11366	1 (iv) If the product of the incremental annual
11367	11367	2 savings goal and minimum average savings life
11368	11368	3 specified in subsection (b-16) of this Section is
11369	11369	4 reduced under paragraph (4) of subsection (f), the
11370	11370	5 return on equity component shall be increased by a
11371	11371	6 maximum of 200 basis points if the utility
11372	11372	7 achieved at least 133.33% of the unmodified
11373	11373	8 lifetime savings goal. If the utility achieved
11374	11374	9 more than 100% of the modified goal but less than
11375	11375	10 133.33% of the unmodified goal, then the return on
11376	11376	11 equity component shall be linearly interpolated
11377	11377	12 between a 0% increase for meeting 100% of the
11378	11378	13 modified goal and a 200 basis point increase for
11379	11379	14 achieving 133.33% of the unmodified goal.
11380	11380	15 (C) Notwithstanding provisions in subparagraphs
11381	11381	16 (A) and (B) of paragraph (7) of this subsection, if the
11382	11382	17 applicable annual incremental goal for an electric
11383	11383	18 utility is ever less than 0.6% of deemed average
11384	11384	19 weather normalized sales of electric power and energy
11385	11385	20 during calendar years 2014, 2015 and 2016, an
11386	11386	21 adjustment to the return on equity component of the
11387	11387	22 utility's weighted average cost of capital calculated
11388	11388	23 under subsection (d) of this Section shall be made as
11389	11389	24 follows:
11390	11390	25 (i) The return on equity component shall be
11391	11391	26 reduced by 8 basis points for each percent by
11392	11392
11393	11393
11394	11394
11395	11395
11396	11396
11397	11397	SB3997 - 316 - LRB103 43686 LNS 77044 b
11398	11398
11399	11399
11400	11400	SB3997- 317 -LRB103 43686 LNS 77044 b SB3997 - 317 - LRB103 43686 LNS 77044 b
11401	11401	SB3997 - 317 - LRB103 43686 LNS 77044 b
11402	11402	1 which the utility did not achieve 100% of the
11403	11403	2 applicable annual total savings requirement.
11404	11404	3 (ii) The return on equity component shall be
11405	11405	4 increased by 8 basis points for each percent by
11406	11406	5 which the utility exceeded 100% of the applicable
11407	11407	6 annual total savings requirement.
11408	11408	7 (iii) The return on equity component shall not
11409	11409	8 be increased or decreased by an amount greater
11410	11410	9 than 200 basis points pursuant to this
11411	11411	10 subparagraph (C).
11412	11412	11 (D) If the applicable annual incremental goal was
11413	11413	12 reduced under paragraph (1), (2), (3), or (4) of
11414	11414	13 subsection (f) of this Section, then the following
11415	11415	14 adjustments shall be made to the calculations
11416	11416	15 described in subparagraphs (A), (B), and (C) of this
11417	11417	16 paragraph (8):
11418	11418	17 (i) The calculation for determining
11419	11419	18 achievement that is at least 125% or 134%, as
11420	11420	19 applicable, of the applicable annual incremental
11421	11421	20 goal or the applicable annual total savings
11422	11422	21 requirement, as applicable, shall use the
11423	11423	22 unreduced applicable annual incremental goal to
11424	11424	23 set the value.
11425	11425	24 (ii) For the period through December 31, 2025,
11426	11426	25 the calculation for determining achievement that
11427	11427	26 is less than 125% but more than 100% of the
11428	11428
11429	11429
11430	11430
11431	11431
11432	11432
11433	11433	SB3997 - 317 - LRB103 43686 LNS 77044 b
11434	11434
11435	11435
11436	11436	SB3997- 318 -LRB103 43686 LNS 77044 b SB3997 - 318 - LRB103 43686 LNS 77044 b
11437	11437	SB3997 - 318 - LRB103 43686 LNS 77044 b
11438	11438	1 applicable annual incremental goal or the
11439	11439	2 applicable annual total savings requirement, as
11440	11440	3 applicable, shall use the reduced applicable
11441	11441	4 annual incremental goal to set the value for 100%
11442	11442	5 achievement of the goal and shall use the
11443	11443	6 unreduced goal to set the value for 125%
11444	11444	7 achievement. The 8 basis point value shall also be
11445	11445	8 modified, as necessary, so that the 200 basis
11446	11446	9 points are evenly apportioned among each
11447	11447	10 percentage point value between 100% and 125%
11448	11448	11 achievement.
11449	11449	12 (iii) For the period of January 1, 2026
11450	11450	13 through December 31, 2029 and all subsequent
11451	11451	14 4-year periods, the calculation for determining
11452	11452	15 achievement that is less than 125% or 134%, as
11453	11453	16 applicable, but more than 100% of the applicable
11454	11454	17 annual incremental goal or the applicable annual
11455	11455	18 total savings requirement, as applicable, shall
11456	11456	19 use the reduced applicable annual incremental goal
11457	11457	20 to set the value for 100% achievement of the goal
11458	11458	21 and shall use the unreduced goal to set the value
11459	11459	22 for 125% achievement. The 6 basis-point value or 8
11460	11460	23 basis-point value, as applicable, shall also be
11461	11461	24 modified, as necessary, so that the 200 basis
11462	11462	25 points are evenly apportioned among each
11463	11463	26 percentage point value between 100% and 125% or
11464	11464
11465	11465
11466	11466
11467	11467
11468	11468
11469	11469	SB3997 - 318 - LRB103 43686 LNS 77044 b
11470	11470
11471	11471
11472	11472	SB3997- 319 -LRB103 43686 LNS 77044 b SB3997 - 319 - LRB103 43686 LNS 77044 b
11473	11473	SB3997 - 319 - LRB103 43686 LNS 77044 b
11474	11474	1 between 100% and 134% achievement, as applicable.
11475	11475	2 (9) The utility shall submit the energy savings data
11476	11476	3 to the independent evaluator no later than 30 days after
11477	11477	4 the close of the plan year. The independent evaluator
11478	11478	5 shall determine the cumulative persisting annual savings
11479	11479	6 for a given plan year, as well as an estimate of job
11480	11480	7 impacts and other macroeconomic impacts of the efficiency
11481	11481	8 programs for that year, no later than 120 days after the
11482	11482	9 close of the plan year. The utility shall submit an
11483	11483	10 informational filing to the Commission no later than 160
11484	11484	11 days after the close of the plan year that attaches the
11485	11485	12 independent evaluator's final report identifying the
11486	11486	13 cumulative persisting annual savings for the year and
11487	11487	14 calculates, under paragraph (7) or (8) of this subsection
11488	11488	15 (g), as applicable, any resulting change to the utility's
11489	11489	16 return on equity component of the weighted average cost of
11490	11490	17 capital applicable to the next plan year beginning with
11491	11491	18 the January monthly billing period and extending through
11492	11492	19 the December monthly billing period. However, if the
11493	11493	20 utility recovers the costs incurred under this Section
11494	11494	21 under paragraphs (2) and (3) of subsection (d) of this
11495	11495	22 Section, then the utility shall not be required to submit
11496	11496	23 such informational filing, and shall instead submit the
11497	11497	24 information that would otherwise be included in the
11498	11498	25 informational filing as part of its filing under paragraph
11499	11499	26 (3) of such subsection (d) that is due on or before June 1
11500	11500
11501	11501
11502	11502
11503	11503
11504	11504
11505	11505	SB3997 - 319 - LRB103 43686 LNS 77044 b
11506	11506
11507	11507
11508	11508	SB3997- 320 -LRB103 43686 LNS 77044 b SB3997 - 320 - LRB103 43686 LNS 77044 b
11509	11509	SB3997 - 320 - LRB103 43686 LNS 77044 b
11510	11510	1 of each year.
11511	11511	2 For those utilities that must submit the informational
11512	11512	3 filing, the Commission may, on its own motion or by
11513	11513	4 petition, initiate an investigation of such filing,
11514	11514	5 provided, however, that the utility's proposed return on
11515	11515	6 equity calculation shall be deemed the final, approved
11516	11516	7 calculation on December 15 of the year in which it is filed
11517	11517	8 unless the Commission enters an order on or before
11518	11518	9 December 15, after notice and hearing, that modifies such
11519	11519	10 calculation consistent with this Section.
11520	11520	11 The adjustments to the return on equity component
11521	11521	12 described in paragraph paragraphs (7) and (8) of this
11522	11522	13 subsection (g) shall be applied as described in such
11523	11523	14 paragraphs through a separate tariff mechanism, which
11524	11524	15 shall be filed by the utility under subsections (f) and
11525	11525	16 (g) of this Section.
11526	11526	17 (9.5) The utility must demonstrate how it will ensure
11527	11527	18 that program implementation contractors and energy
11528	11528	19 efficiency installation vendors will promote workforce
11529	11529	20 equity and quality jobs.
11530	11530	21 (9.6) Utilities shall collect data necessary to ensure
11531	11531	22 compliance with paragraph (9.5) no less than quarterly and
11532	11532	23 shall communicate progress toward compliance with
11533	11533	24 paragraph (9.5) to program implementation contractors and
11534	11534	25 energy efficiency installation vendors no less than
11535	11535	26 quarterly. Utilities shall work with relevant vendors,
11536	11536
11537	11537
11538	11538
11539	11539
11540	11540
11541	11541	SB3997 - 320 - LRB103 43686 LNS 77044 b
11542	11542
11543	11543
11544	11544	SB3997- 321 -LRB103 43686 LNS 77044 b SB3997 - 321 - LRB103 43686 LNS 77044 b
11545	11545	SB3997 - 321 - LRB103 43686 LNS 77044 b
11546	11546	1 providing education, training, and other resources needed
11547	11547	2 to ensure compliance and, where necessary, adjusting or
11548	11548	3 terminating work with vendors that cannot assist with
11549	11549	4 compliance.
11550	11550	5 (10) Utilities required to implement efficiency
11551	11551	6 programs under subsections (b-5), and (b-10), and (b-16)
11552	11552	7 shall report annually to the Illinois Commerce Commission
11553	11553	8 and the General Assembly on how hiring, contracting, job
11554	11554	9 training, and other practices related to its energy
11555	11555	10 efficiency programs enhance the diversity of vendors
11556	11556	11 working on such programs. These reports must include data
11557	11557	12 on vendor and employee diversity, including data on the
11558	11558	13 implementation of paragraphs (9.5) and (9.6). If the
11559	11559	14 utility is not meeting the requirements of paragraphs
11560	11560	15 (9.5) and (9.6), the utility shall submit a plan to adjust
11561	11561	16 their activities so that they meet the requirements of
11562	11562	17 paragraphs (9.5) and (9.6) within the following year.
11563	11563	18 (h) No more than 4% of energy efficiency and
11564	11564	19 demand-response program revenue may be allocated for research,
11565	11565	20 development, or pilot deployment of new equipment or measures.
11566	11566	21 Electric utilities shall work with interested stakeholders to
11567	11567	22 formulate a plan for how these funds should be spent,
11568	11568	23 incorporate statewide approaches for these allocations, and
11569	11569	24 file a 4-year plan that demonstrates that collaboration. If a
11570	11570	25 utility files a request for modified annual energy savings
11571	11571	26 goals with the Commission, then a utility shall forgo spending
11572	11572
11573	11573
11574	11574
11575	11575
11576	11576
11577	11577	SB3997 - 321 - LRB103 43686 LNS 77044 b
11578	11578
11579	11579
11580	11580	SB3997- 322 -LRB103 43686 LNS 77044 b SB3997 - 322 - LRB103 43686 LNS 77044 b
11581	11581	SB3997 - 322 - LRB103 43686 LNS 77044 b
11582	11582	1 portfolio dollars on research and development proposals.
11583	11583	2 (i) When practicable, electric utilities shall incorporate
11584	11584	3 advanced metering infrastructure data into the planning,
11585	11585	4 implementation, and evaluation of energy efficiency measures
11586	11586	5 and programs, subject to the data privacy and confidentiality
11587	11587	6 protections of applicable law.
11588	11588	7 (j) The independent evaluator shall follow the guidelines
11589	11589	8 and use the savings set forth in Commission-approved energy
11590	11590	9 efficiency policy manuals and technical reference manuals, as
11591	11591	10 each may be updated from time to time. Until such time as
11592	11592	11 measure life values for energy efficiency measures implemented
11593	11593	12 for low-income households under subsection (c) of this Section
11594	11594	13 are incorporated into such Commission-approved manuals, the
11595	11595	14 low-income measures shall have the same measure life values
11596	11596	15 that are established for same measures implemented in
11597	11597	16 households that are not low-income households.
11598	11598	17 (k) Notwithstanding any provision of law to the contrary,
11599	11599	18 an electric utility subject to the requirements of this
11600	11600	19 Section may file a tariff cancelling an automatic adjustment
11601	11601	20 clause tariff in effect under this Section or Section 8-103,
11602	11602	21 which shall take effect no later than one business day after
11603	11603	22 the date such tariff is filed. Thereafter, the utility shall
11604	11604	23 be authorized to defer and recover its expenditures incurred
11605	11605	24 under this Section through a new tariff authorized under
11606	11606	25 subsection (d) of this Section or in the utility's next rate
11607	11607	26 case under Article IX or Section 16-108.5 of this Act, with
11608	11608
11609	11609
11610	11610
11611	11611
11612	11612
11613	11613	SB3997 - 322 - LRB103 43686 LNS 77044 b
11614	11614
11615	11615
11616	11616	SB3997- 323 -LRB103 43686 LNS 77044 b SB3997 - 323 - LRB103 43686 LNS 77044 b
11617	11617	SB3997 - 323 - LRB103 43686 LNS 77044 b
11618	11618	1 interest at an annual rate equal to the utility's weighted
11619	11619	2 average cost of capital as approved by the Commission in such
11620	11620	3 case. If the utility elects to file a new tariff under
11621	11621	4 subsection (d) of this Section, the utility may file the
11622	11622	5 tariff within 10 days after June 1, 2017 (the effective date of
11623	11623	6 Public Act 99-906), and the cost inputs to such tariff shall be
11624	11624	7 based on the projected costs to be incurred by the utility
11625	11625	8 during the calendar year in which the new tariff is filed and
11626	11626	9 that were not recovered under the tariff that was cancelled as
11627	11627	10 provided for in this subsection. Such costs shall include
11628	11628	11 those incurred or to be incurred by the utility under its
11629	11629	12 multi-year plan approved under subsections (f) and (g) of this
11630	11630	13 Section, including, but not limited to, projected capital
11631	11631	14 investment costs and projected regulatory asset balances with
11632	11632	15 correspondingly updated depreciation and amortization reserves
11633	11633	16 and expense. The Commission shall, after notice and hearing,
11634	11634	17 approve, or approve with modification, such tariff and cost
11635	11635	18 inputs no later than 75 days after the utility filed the
11636	11636	19 tariff, provided that such approval, or approval with
11637	11637	20 modification, shall be consistent with the provisions of this
11638	11638	21 Section to the extent they do not conflict with this
11639	11639	22 subsection (k). The tariff approved by the Commission shall
11640	11640	23 take effect no later than 5 days after the Commission enters
11641	11641	24 its order approving the tariff.
11642	11642	25 No later than 60 days after the effective date of the
11643	11643	26 tariff cancelling the utility's automatic adjustment clause
11644	11644
11645	11645
11646	11646
11647	11647
11648	11648
11649	11649	SB3997 - 323 - LRB103 43686 LNS 77044 b
11650	11650
11651	11651
11652	11652	SB3997- 324 -LRB103 43686 LNS 77044 b SB3997 - 324 - LRB103 43686 LNS 77044 b
11653	11653	SB3997 - 324 - LRB103 43686 LNS 77044 b
11654	11654	1 tariff, the utility shall file a reconciliation that
11655	11655	2 reconciles the moneys collected under its automatic adjustment
11656	11656	3 clause tariff with the costs incurred during the period
11657	11657	4 beginning June 1, 2016 and ending on the date that the electric
11658	11658	5 utility's automatic adjustment clause tariff was cancelled. In
11659	11659	6 the event the reconciliation reflects an under-collection, the
11660	11660	7 utility shall recover the costs as specified in this
11661	11661	8 subsection (k). If the reconciliation reflects an
11662	11662	9 over-collection, the utility shall apply the amount of such
11663	11663	10 over-collection as a one-time credit to retail customers'
11664	11664	11 bills.
11665	11665	12 (l) For the calendar years covered by a multi-year plan
11666	11666	13 commencing after December 31, 2017, subsections (a) through
11667	11667	14 (j) of this Section do not apply to eligible large private
11668	11668	15 energy customers that have chosen to opt out of multi-year
11669	11669	16 plans consistent with this subsection (1).
11670	11670	17 (1) For purposes of this subsection (l), "eligible
11671	11671	18 large private energy customer" means any retail customers,
11672	11672	19 except for federal, State, municipal, and other public
11673	11673	20 customers, of an electric utility that serves more than
11674	11674	21 3,000,000 retail customers, except for federal, State,
11675	11675	22 municipal and other public customers, in the State and
11676	11676	23 whose total highest 30 minute demand was more than 10,000
11677	11677	24 kilowatts, or any retail customers of an electric utility
11678	11678	25 that serves less than 3,000,000 retail customers but more
11679	11679	26 than 500,000 retail customers in the State and whose total
11680	11680
11681	11681
11682	11682
11683	11683
11684	11684
11685	11685	SB3997 - 324 - LRB103 43686 LNS 77044 b
11686	11686
11687	11687
11688	11688	SB3997- 325 -LRB103 43686 LNS 77044 b SB3997 - 325 - LRB103 43686 LNS 77044 b
11689	11689	SB3997 - 325 - LRB103 43686 LNS 77044 b
11690	11690	1 highest 15 minute demand was more than 10,000 kilowatts.
11691	11691	2 For purposes of this subsection (l), "retail customer" has
11692	11692	3 the meaning set forth in Section 16-102 of this Act.
11693	11693	4 However, for a business entity with multiple sites located
11694	11694	5 in the State, where at least one of those sites qualifies
11695	11695	6 as an eligible large private energy customer, then any of
11696	11696	7 that business entity's sites, properly identified on a
11697	11697	8 form for notice, shall be considered eligible large
11698	11698	9 private energy customers for the purposes of this
11699	11699	10 subsection (l). A determination of whether this subsection
11700	11700	11 is applicable to a customer shall be made for each
11701	11701	12 multi-year plan beginning after December 31, 2017. The
11702	11702	13 criteria for determining whether this subsection (l) is
11703	11703	14 applicable to a retail customer shall be based on the 12
11704	11704	15 consecutive billing periods prior to the start of the
11705	11705	16 first year of each such multi-year plan.
11706	11706	17 (2) Within 45 days after September 15, 2021 (the
11707	11707	18 effective date of Public Act 102-662), the Commission
11708	11708	19 shall prescribe the form for notice required for opting
11709	11709	20 out of energy efficiency programs. The notice must be
11710	11710	21 submitted to the retail electric utility 12 months before
11711	11711	22 the next energy efficiency planning cycle. However, within
11712	11712	23 120 days after the Commission's initial issuance of the
11713	11713	24 form for notice, eligible large private energy customers
11714	11714	25 may submit a form for notice to an electric utility. The
11715	11715	26 form for notice for opting out of energy efficiency
11716	11716
11717	11717
11718	11718
11719	11719
11720	11720
11721	11721	SB3997 - 325 - LRB103 43686 LNS 77044 b
11722	11722
11723	11723
11724	11724	SB3997- 326 -LRB103 43686 LNS 77044 b SB3997 - 326 - LRB103 43686 LNS 77044 b
11725	11725	SB3997 - 326 - LRB103 43686 LNS 77044 b
11726	11726	1 programs shall include all of the following:
11727	11727	2 (A) a statement indicating that the customer has
11728	11728	3 elected to opt out;
11729	11729	4 (B) the account numbers for the customer accounts
11730	11730	5 to which the opt out shall apply;
11731	11731	6 (C) the mailing address associated with the
11732	11732	7 customer accounts identified under subparagraph (B);
11733	11733	8 (D) an American Society of Heating, Refrigerating,
11734	11734	9 and Air-Conditioning Engineers (ASHRAE) level 2 or
11735	11735	10 higher audit report conducted by an independent
11736	11736	11 third-party expert identifying cost-effective energy
11737	11737	12 efficiency project opportunities that could be
11738	11738	13 invested in over the next 10 years. A retail customer
11739	11739	14 with specialized processes may utilize a self-audit
11740	11740	15 process in lieu of the ASHRAE audit;
11741	11741	16 (E) a description of the customer's plans to
11742	11742	17 reallocate the funds toward internal energy efficiency
11743	11743	18 efforts identified in the subparagraph (D) report,
11744	11744	19 including, but not limited to: (i) strategic energy
11745	11745	20 management or other programs, including descriptions
11746	11746	21 of targeted buildings, equipment and operations; (ii)
11747	11747	22 eligible energy efficiency measures; and (iii)
11748	11748	23 expected energy savings, itemized by technology. If
11749	11749	24 the subparagraph (D) audit report identifies that the
11750	11750	25 customer currently utilizes the best available energy
11751	11751	26 efficient technology, equipment, programs, and
11752	11752
11753	11753
11754	11754
11755	11755
11756	11756
11757	11757	SB3997 - 326 - LRB103 43686 LNS 77044 b
11758	11758
11759	11759
11760	11760	SB3997- 327 -LRB103 43686 LNS 77044 b SB3997 - 327 - LRB103 43686 LNS 77044 b
11761	11761	SB3997 - 327 - LRB103 43686 LNS 77044 b
11762	11762	1 operations, the customer may provide a statement that
11763	11763	2 more efficient technology, equipment, programs, and
11764	11764	3 operations are not reasonably available as a means of
11765	11765	4 satisfying this subparagraph (E); and
11766	11766	5 (F) the effective date of the opt out, which will
11767	11767	6 be the next January 1 following notice of the opt out.
11768	11768	7 (3) Upon receipt of a properly and timely noticed
11769	11769	8 request for opt out submitted by an eligible large private
11770	11770	9 energy customer, the retail electric utility shall grant
11771	11771	10 the request, file the request with the Commission and,
11772	11772	11 beginning January 1 of the following year, the opted out
11773	11773	12 customer shall no longer be assessed the costs of the plan
11774	11774	13 and shall be prohibited from participating in that 4-year
11775	11775	14 plan cycle to give the retail utility the certainty to
11776	11776	15 design program plan proposals.
11777	11777	16 (4) Upon a customer's election to opt out under
11778	11778	17 paragraphs (1) and (2) of this subsection (l) and
11779	11779	18 commencing on the effective date of said opt out, the
11780	11780	19 account properly identified in the customer's notice under
11781	11781	20 paragraph (2) shall not be subject to any cost recovery
11782	11782	21 and shall not be eligible to participate in, or directly
11783	11783	22 benefit from, compliance with energy efficiency cumulative
11784	11784	23 persisting savings requirements under subsections (a)
11785	11785	24 through (j).
11786	11786	25 (5) A utility's cumulative persisting annual savings
11787	11787	26 targets will exclude any opted out load.
11788	11788
11789	11789
11790	11790
11791	11791
11792	11792
11793	11793	SB3997 - 327 - LRB103 43686 LNS 77044 b
11794	11794
11795	11795
11796	11796	SB3997- 328 -LRB103 43686 LNS 77044 b SB3997 - 328 - LRB103 43686 LNS 77044 b
11797	11797	SB3997 - 328 - LRB103 43686 LNS 77044 b
11798	11798	1 (6) The request to opt out is only valid for the
11799	11799	2 requested plan cycle. An eligible large private energy
11800	11800	3 customer must also request to opt out for future energy
11801	11801	4 plan cycles, otherwise the customer will be included in
11802	11802	5 the future energy plan cycle.
11803	11803	6 (m) Notwithstanding the requirements of this Section, as
11804	11804	7 part of a proceeding to approve a multi-year plan under
11805	11805	8 subsections (f) and (g) of this Section if the multi-year plan
11806	11806	9 has been designed to maximize savings, but does not meet the
11807	11807	10 cost cap limitations of this Section, the Commission shall
11808	11808	11 reduce the amount of energy efficiency measures implemented
11809	11809	12 for any single year, and whose costs are recovered under
11810	11810	13 subsection (d) of this Section, by an amount necessary to
11811	11811	14 limit the estimated average net increase due to the cost of the
11812	11812	15 measures to no more than
11813	11813	16 (1) 3.5% for each of the 4 years beginning January 1,
11814	11814	17 2018,
11815	11815	18 (2) (blank),
11816	11816	19 (3) 4% for each of the 5 4 years beginning January 1,
11817	11817	20 2022,
11818	11818	21 (4) 4.25% for electric utilities with more than 3
11819	11819	22 million retail customers, and 5.10% for electric utilities
11820	11820	23 with less than 3 million retail customers but more 500,000
11821	11821	24 retail customers, for the 3 4 years beginning January 1,
11822	11822	25 2027 2026, and
11823	11823	26 (5) the percentages specified in paragraph (4) 4.25%
11824	11824
11825	11825
11826	11826
11827	11827
11828	11828
11829	11829	SB3997 - 328 - LRB103 43686 LNS 77044 b
11830	11830
11831	11831
11832	11832	SB3997- 329 -LRB103 43686 LNS 77044 b SB3997 - 329 - LRB103 43686 LNS 77044 b
11833	11833	SB3997 - 329 - LRB103 43686 LNS 77044 b
11834	11834	1 plus an increase sufficient to account for the rate of
11835	11835	2 inflation between January 1, 2027 2026 and January 1 of
11836	11836	3 the first year of each subsequent 4-year plan cycle,
11837	11837	4 of the average amount paid per kilowatthour by residential
11838	11838	5 eligible retail customers during calendar year 2023 2015. An
11839	11839	6 electric utility may plan to spend up to 10% more in any year
11840	11840	7 during an applicable multi-year plan period to
11841	11841	8 cost-effectively achieve additional savings so long as the
11842	11842	9 average over the applicable multi-year plan period does not
11843	11843	10 exceed the percentages defined in items (1) through (5). To
11844	11844	11 determine the total amount that may be spent by an electric
11845	11845	12 utility in any single year, the applicable percentage of the
11846	11846	13 average amount paid per kilowatthour shall be multiplied by
11847	11847	14 the total amount of energy delivered by such electric utility
11848	11848	15 in the calendar year 2023 2015, adjusted to reflect the
11849	11849	16 proportion of the utility's load attributable to customers
11850	11850	17 that have opted out of subsections (a) through (j) of this
11851	11851	18 Section under subsection (l) of this Section. For purposes of
11852	11852	19 this subsection (m), the amount paid per kilowatthour
11853	11853	20 includes, without limitation, estimated amounts paid for
11854	11854	21 supply, transmission, distribution, surcharges, and add-on
11855	11855	22 taxes. For purposes of this Section, "eligible retail
11856	11856	23 customers" shall have the meaning set forth in Section
11857	11857	24 16-111.5 of this Act. Once the Commission has approved a plan
11858	11858	25 under subsections (f) and (g) of this Section, no subsequent
11859	11859	26 rate impact determinations shall be made.
11860	11860
11861	11861
11862	11862
11863	11863
11864	11864
11865	11865	SB3997 - 329 - LRB103 43686 LNS 77044 b
11866	11866
11867	11867
11868	11868	SB3997- 330 -LRB103 43686 LNS 77044 b SB3997 - 330 - LRB103 43686 LNS 77044 b
11869	11869	SB3997 - 330 - LRB103 43686 LNS 77044 b
11870	11870	1 (n) A utility shall take advantage of the efficiencies
11871	11871	2 available through existing Illinois Home Weatherization
11872	11872	3 Assistance Program infrastructure and services, such as
11873	11873	4 enrollment, marketing, quality assurance and implementation,
11874	11874	5 which can reduce the need for similar services at a lower cost
11875	11875	6 than utility-only programs, subject to capacity constraints at
11876	11876	7 community action agencies, for both single-family and
11877	11877	8 multifamily weatherization services, to the extent Illinois
11878	11878	9 Home Weatherization Assistance Program community action
11879	11879	10 agencies provide multifamily services. A utility's plan shall
11880	11880	11 demonstrate that in formulating annual weatherization budgets,
11881	11881	12 it has sought input and coordination with community action
11882	11882	13 agencies regarding agencies' capacity to expand and maximize
11883	11883	14 Illinois Home Weatherization Assistance Program delivery using
11884	11884	15 the ratepayer dollars collected under this Section.
11885	11885	16 (o) The recent results of PJM capacity auctions will
11886	11886	17 affect the market prices paid by customers. Load growth,
11887	11887	18 electric supply constraints, and PJM capacity auction rules
11888	11888	19 have resulted in increased PJM capacity prices for the
11889	11889	20 2025-2026 PJM delivery year, which will increase the rates
11890	11890	21 paid by customers beginning for the June 1, 2025 billing
11891	11891	22 cycle. To promote bill transparency, for electric utilities
11892	11892	23 serving customers located in the PJM interconnection region,
11893	11893	24 each utility shall include at least the following statement as
11894	11894	25 part of a bill insert or bill message provided with any bill
11895	11895	26 issued to customers: "Your bill has increased this month due
11896	11896
11897	11897
11898	11898
11899	11899
11900	11900
11901	11901	SB3997 - 330 - LRB103 43686 LNS 77044 b
11902	11902
11903	11903
11904	11904	SB3997- 331 -LRB103 43686 LNS 77044 b SB3997 - 331 - LRB103 43686 LNS 77044 b
11905	11905	SB3997 - 331 - LRB103 43686 LNS 77044 b
11906	11906	1 to increased capacity prices resulting from PJM capacity
11907	11907	2 auctions.". The amount of the monthly rate increase
11908	11908	3 attributable to increased capacity prices resulting from the
11909	11909	4 PJM capacity auction shall also be reflected in the customer's
11910	11910	5 bill with the description "PJM capacity price increase
11911	11911	6 impact". The electric utility's obligation to reflect the
11912	11912	7 information required by this subsection shall begin with the
11913	11913	8 June 1, 2025 billing cycle, and shall not continue past the
11914	11914	9 December 2025 billing period.
11915	11915	10 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-30-23;
11916	11916	11 103-613, eff. 7-1-24.)
11917	11917	12 (220 ILCS 5/16-107.6)
11918	11918	13 Sec. 16-107.6. Distributed generation rebate.
11919	11919	14 (a) In this Section:
11920	11920	15 "Additive services" means the services that distributed
11921	11921	16 energy resources provide to the energy system and society that
11922	11922	17 are not (1) already included in the base rebates for
11923	11923	18 system-wide grid services; or (2) otherwise already
11924	11924	19 compensated. Additive services may reflect, but shall not be
11925	11925	20 limited to, any geographic, time-based, performance-based, and
11926	11926	21 other benefits of distributed energy resources, as well as the
11927	11927	22 present and future technological capabilities of distributed
11928	11928	23 energy resources and present and future grid needs.
11929	11929	24 "Distributed energy resource" means a wide range of
11930	11930	25 technologies that are located on the customer side of the
11931	11931
11932	11932
11933	11933
11934	11934
11935	11935
11936	11936	SB3997 - 331 - LRB103 43686 LNS 77044 b
11937	11937
11938	11938
11939	11939	SB3997- 332 -LRB103 43686 LNS 77044 b SB3997 - 332 - LRB103 43686 LNS 77044 b
11940	11940	SB3997 - 332 - LRB103 43686 LNS 77044 b
11941	11941	1 customer's electric meter, including, but not limited to,
11942	11942	2 distributed generation, energy storage, electric vehicles, and
11943	11943	3 demand response technologies.
11944	11944	4 "Energy storage system" means commercially available
11945	11945	5 technology that is capable of absorbing energy and storing it
11946	11946	6 for a period of time for use at a later time, including, but
11947	11947	7 not limited to, electrochemical, thermal, and
11948	11948	8 electromechanical technologies, and may be interconnected
11949	11949	9 behind the customer's meter or interconnected behind its own
11950	11950	10 meter.
11951	11951	11 "Smart inverter" means a device that converts direct
11952	11952	12 current into alternating current and meets the IEEE 1547-2018
11953	11953	13 equipment standards. Until devices that meet the IEEE
11954	11954	14 1547-2018 standard are available, devices that meet the UL
11955	11955	15 1741 SA standard are acceptable.
11956	11956	16 "Subscriber" has the meaning set forth in Section 1-10 of
11957	11957	17 the Illinois Power Agency Act.
11958	11958	18 "Subscription" has the meaning set forth in Section 1-10
11959	11959	19 of the Illinois Power Agency Act.
11960	11960	20 "System-wide grid services" means the benefits that a
11961	11961	21 distributed energy resource provides to the distribution grid
11962	11962	22 for a period of no less than 25 years. System-wide grid
11963	11963	23 services do not vary by location, time, or the performance
11964	11964	24 characteristics of the distributed energy resource.
11965	11965	25 System-wide grid services include, but are not limited to,
11966	11966	26 avoided or deferred distribution capacity costs, resilience
11967	11967
11968	11968
11969	11969
11970	11970
11971	11971
11972	11972	SB3997 - 332 - LRB103 43686 LNS 77044 b
11973	11973
11974	11974
11975	11975	SB3997- 333 -LRB103 43686 LNS 77044 b SB3997 - 333 - LRB103 43686 LNS 77044 b
11976	11976	SB3997 - 333 - LRB103 43686 LNS 77044 b
11977	11977	1 and reliability benefits, avoided or deferred distribution
11978	11978	2 operation and maintenance costs, distribution voltage and
11979	11979	3 power quality benefits, and line loss reductions.
11980	11980	4 "Threshold date" means December 31, 2024 or the date on
11981	11981	5 which the utility's tariff or tariffs setting the new
11982	11982	6 compensation values established under subsection (e) take
11983	11983	7 effect, whichever is later.
11984	11984	8 (b) An electric utility that serves more than 200,000
11985	11985	9 customers in the State shall file a petition with the
11986	11986	10 Commission requesting approval of the utility's tariff to
11987	11987	11 provide a rebate to the owner or operator of distributed
11988	11988	12 generation, including third-party owned systems, that meets
11989	11989	13 the following criteria:
11990	11990	14 (1) has a nameplate generating capacity no greater
11991	11991	15 than 5,000 kilowatts and is primarily used to offset a
11992	11992	16 customer's electricity load;
11993	11993	17 (2) is located on the customer's side of the billing
11994	11994	18 meter and for the customer's own use;
11995	11995	19 (3) is interconnected to electric distribution
11996	11996	20 facilities owned by the electric utility under rules
11997	11997	21 adopted by the Commission by means of one or more
11998	11998	22 inverters the inverter or smart inverters inverter
11999	11999	23 required by this Section, as applicable.
12000	12000	24 For purposes of this Section, "distributed generation"
12001	12001	25 shall satisfy the definition of distributed renewable energy
12002	12002	26 generation device set forth in Section 1-10 of the Illinois
12003	12003
12004	12004
12005	12005
12006	12006
12007	12007
12008	12008	SB3997 - 333 - LRB103 43686 LNS 77044 b
12009	12009
12010	12010
12011	12011	SB3997- 334 -LRB103 43686 LNS 77044 b SB3997 - 334 - LRB103 43686 LNS 77044 b
12012	12012	SB3997 - 334 - LRB103 43686 LNS 77044 b
12013	12013	1 Power Agency Act to the extent such definition is consistent
12014	12014	2 with the requirements of this Section.
12015	12015	3 In addition, any new photovoltaic distributed generation
12016	12016	4 that is installed after June 1, 2017 (the effective date of
12017	12017	5 Public Act 99-906) must be installed by a qualified person, as
12018	12018	6 defined by subsection (i) of Section 1-56 of the Illinois
12019	12019	7 Power Agency Act.
12020	12020	8 The tariff shall include a base rebate that compensates
12021	12021	9 distributed generation for the system-wide grid services
12022	12022	10 associated with distributed generation and, after the
12023	12023	11 proceeding described in subsection (e) of this Section, an
12024	12024	12 additional payment or payments for the additive services. The
12025	12025	13 tariff shall provide that the smart inverter or smart
12026	12026	14 inverters associated with the distributed generation shall
12027	12027	15 provide autonomous response to grid conditions through its
12028	12028	16 default settings as approved by the Commission. Default
12029	12029	17 settings may not be changed after the execution of the
12030	12030	18 interconnection agreement except by mutual agreement between
12031	12031	19 the utility and the owner or operator of the distributed
12032	12032	20 generation. Nothing in this Section shall negate or supersede
12033	12033	21 Institute of Electrical and Electronics Engineers equipment
12034	12034	22 standards or other similar standards or requirements. The
12035	12035	23 tariff shall not limit the ability of the smart inverter or
12036	12036	24 smart inverters or other distributed energy resource to
12037	12037	25 provide wholesale market products such as regulation, demand
12038	12038	26 response, or other services, or limit the ability of the owner
12039	12039
12040	12040
12041	12041
12042	12042
12043	12043
12044	12044	SB3997 - 334 - LRB103 43686 LNS 77044 b
12045	12045
12046	12046
12047	12047	SB3997- 335 -LRB103 43686 LNS 77044 b SB3997 - 335 - LRB103 43686 LNS 77044 b
12048	12048	SB3997 - 335 - LRB103 43686 LNS 77044 b
12049	12049	1 of the smart inverter or the other distributed energy resource
12050	12050	2 to receive compensation for providing those wholesale market
12051	12051	3 products or services.
12052	12052	4 (b-5) Within 30 days after the effective date of this
12053	12053	5 amendatory Act of the 102nd General Assembly, each electric
12054	12054	6 public utility with 3,000,000 or more retail customers shall
12055	12055	7 file a tariff with the Commission that further compensates any
12056	12056	8 retail customer that installs or has installed photovoltaic
12057	12057	9 facilities paired with energy storage facilities on or
12058	12058	10 adjacent to its premises for the benefits the facilities
12059	12059	11 provide to the distribution grid. The tariff shall provide
12060	12060	12 that, in addition to the other rebates identified in this
12061	12061	13 Section, the electric utility shall rebate to such retail
12062	12062	14 customer (i) the previously incurred and future costs of
12063	12063	15 installing interconnection facilities and related
12064	12064	16 infrastructure to enable full participation in the PJM
12065	12065	17 Interconnection, LLC or its successor organization frequency
12066	12066	18 regulation market; and (ii) all wholesale demand charges
12067	12067	19 incurred after the effective date of this amendatory Act of
12068	12068	20 the 102nd General Assembly. The Commission shall approve, or
12069	12069	21 approve with modification, the tariff within 120 days after
12070	12070	22 the utility's filing.
12071	12071	23 (c) The proposed tariff authorized by subsection (b) of
12072	12072	24 this Section shall include the following participation terms
12073	12073	25 for rebates to be applied under this Section for distributed
12074	12074	26 generation that satisfies the criteria set forth in subsection
12075	12075
12076	12076
12077	12077
12078	12078
12079	12079
12080	12080	SB3997 - 335 - LRB103 43686 LNS 77044 b
12081	12081
12082	12082
12083	12083	SB3997- 336 -LRB103 43686 LNS 77044 b SB3997 - 336 - LRB103 43686 LNS 77044 b
12084	12084	SB3997 - 336 - LRB103 43686 LNS 77044 b
12085	12085	1 (b) of this Section:
12086	12086	2 (1) The owner or operator of distributed generation
12087	12087	3 that services customers not eligible for net metering
12088	12088	4 under subsection (d), (d-5), or (e) of Section 16-107.5 of
12089	12089	5 this Act may apply for a rebate as provided for in this
12090	12090	6 Section. Until the threshold date, the value of the rebate
12091	12091	7 shall be $250 per kilowatt of nameplate generating
12092	12092	8 capacity, measured as nominal DC power output, of that
12093	12093	9 customer's distributed generation. To the extent the
12094	12094	10 distributed generation also has an associated energy
12095	12095	11 storage, then the energy storage system shall be
12096	12096	12 separately compensated with a base rebate of $250 per
12097	12097	13 kilowatt-hour of nameplate capacity. Any distributed
12098	12098	14 generation device that is compensated for storage in this
12099	12099	15 subsection (1) before the threshold date shall participate
12100	12100	16 in one or more programs determined through the Multi-Year
12101	12101	17 Integrated Grid Planning process that are designed to meet
12102	12102	18 peak reduction and flexibility. After the threshold date,
12103	12103	19 the value of the base rebate and additional compensation
12104	12104	20 for any additive services shall be as determined by the
12105	12105	21 Commission in the proceeding described in subsection (e)
12106	12106	22 of this Section, provided that the value of the base
12107	12107	23 rebate for system-wide grid services shall not be lower
12108	12108	24 than $250 per kilowatt of nameplate generating capacity of
12109	12109	25 distributed generation or community renewable generation
12110	12110	26 project.
12111	12111
12112	12112
12113	12113
12114	12114
12115	12115
12116	12116	SB3997 - 336 - LRB103 43686 LNS 77044 b
12117	12117
12118	12118
12119	12119	SB3997- 337 -LRB103 43686 LNS 77044 b SB3997 - 337 - LRB103 43686 LNS 77044 b
12120	12120	SB3997 - 337 - LRB103 43686 LNS 77044 b
12121	12121	1 (2) The owner or operator of distributed generation
12122	12122	2 that, before the threshold date, would have been eligible
12123	12123	3 for net metering under subsection (d), (d-5), or (e) of
12124	12124	4 Section 16-107.5 of this Act and that has not previously
12125	12125	5 received a distributed generation rebate, may apply for a
12126	12126	6 rebate as provided for in this Section. Until the
12127	12127	7 threshold date, the value of the base rebate shall be $300
12128	12128	8 per kilowatt of nameplate generating capacity, measured as
12129	12129	9 nominal DC power output, of the distributed generation.
12130	12130	10 The owner or operator of distributed generation that,
12131	12131	11 before the threshold date, is eligible for net metering
12132	12132	12 under subsection (d), (d-5), or (e) of Section 16-107.5 of
12133	12133	13 this Act may apply for a base rebate for an associated
12134	12134	14 energy storage device behind the same retail customer
12135	12135	15 meter that uses the same smart inverter as the distributed
12136	12136	16 generation, regardless of whether the distributed
12137	12137	17 generation applies for a rebate for the distributed
12138	12138	18 generation device. The energy storage system shall be
12139	12139	19 separately compensated at a base payment of $300 per
12140	12140	20 kilowatt-hour of nameplate capacity. Any distributed
12141	12141	21 generation device that is compensated for storage in this
12142	12142	22 subsection (2) before the threshold date shall participate
12143	12143	23 in a peak time rebate program, hourly pricing program, or
12144	12144	24 time-of-use rate program offered by the applicable
12145	12145	25 electric utility. After the threshold date, the value of
12146	12146	26 the base rebate and additional compensation for any
12147	12147
12148	12148
12149	12149
12150	12150
12151	12151
12152	12152	SB3997 - 337 - LRB103 43686 LNS 77044 b
12153	12153
12154	12154
12155	12155	SB3997- 338 -LRB103 43686 LNS 77044 b SB3997 - 338 - LRB103 43686 LNS 77044 b
12156	12156	SB3997 - 338 - LRB103 43686 LNS 77044 b
12157	12157	1 additive services shall be as determined by the Commission
12158	12158	2 in the proceeding described in subsection (e) of this
12159	12159	3 Section, provided that, prior to December 31, 2029, the
12160	12160	4 value of the base rebate for system-wide services shall
12161	12161	5 not be lower than $300 per kilowatt of nameplate
12162	12162	6 generating capacity of distributed generation, after which
12163	12163	7 it shall not be lower than $250 per kilowatt of nameplate
12164	12164	8 capacity. The eligibility of energy storage devices that
12165	12165	9 are interconnected behind the same retail customer meter
12166	12166	10 as the distributed generation shall not be limited to
12167	12167	11 energy storage devices interconnected after the effective
12168	12168	12 date of this amendatory Act of the 103rd General Assembly.
12169	12169	13 To the extent that an electric utility's tariffs are
12170	12170	14 inconsistent with the requirements of this paragraph (2)
12171	12171	15 as modified by this amendatory Act of the 103rd General
12172	12172	16 Assembly, such electric utility shall, within 30 days,
12173	12173	17 file modified tariffs consistent with the requirements of
12174	12174	18 this paragraph (2).
12175	12175	19 (3) Upon approval of a rebate application submitted
12176	12176	20 under this subsection (c), the retail customer shall no
12177	12177	21 longer be entitled to receive any delivery service credits
12178	12178	22 for the excess electricity generated by its facility and
12179	12179	23 shall be subject to the provisions of subsection (n) of
12180	12180	24 Section 16-107.5 of this Act unless the owner or operator
12181	12181	25 receives a rebate only for an energy storage device and
12182	12182	26 not for the distributed generation device.
12183	12183
12184	12184
12185	12185
12186	12186
12187	12187
12188	12188	SB3997 - 338 - LRB103 43686 LNS 77044 b
12189	12189
12190	12190
12191	12191	SB3997- 339 -LRB103 43686 LNS 77044 b SB3997 - 339 - LRB103 43686 LNS 77044 b
12192	12192	SB3997 - 339 - LRB103 43686 LNS 77044 b
12193	12193	1 (4) To be eligible for a rebate described in this
12194	12194	2 subsection (c), the owner or operator of the distributed
12195	12195	3 generation must have a smart inverter installed and in
12196	12196	4 operation on the distributed generation.
12197	12197	5 (d) The Commission shall review the proposed tariff
12198	12198	6 authorized by subsection (b) of this Section and may make
12199	12199	7 changes to the tariff that are consistent with this Section
12200	12200	8 and with the Commission's authority under Article IX of this
12201	12201	9 Act, subject to notice and hearing. Following notice and
12202	12202	10 hearing, the Commission shall issue an order approving, or
12203	12203	11 approving with modification, such tariff no later than 240
12204	12204	12 days after the utility files its tariff. Upon the effective
12205	12205	13 date of this amendatory Act of the 102nd General Assembly, an
12206	12206	14 electric utility shall file a petition with the Commission to
12207	12207	15 amend and update any existing tariffs to comply with
12208	12208	16 subsections (b) and (c).
12209	12209	17 (e) By no later than June 30, 2023, the Commission shall
12210	12210	18 open an independent, statewide investigation into the value
12211	12211	19 of, and compensation for, distributed energy resources. The
12212	12212	20 Commission shall conduct the investigation, but may arrange
12213	12213	21 for experts or consultants independent of the utilities and
12214	12214	22 selected by the Commission to assist with the investigation.
12215	12215	23 The cost of the investigation shall be shared by the utilities
12216	12216	24 filing tariffs under subsection (b) of this Section but may be
12217	12217	25 recovered as an expense through normal ratemaking procedures.
12218	12218	26 (1) The Commission shall ensure that the investigation
12219	12219
12220	12220
12221	12221
12222	12222
12223	12223
12224	12224	SB3997 - 339 - LRB103 43686 LNS 77044 b
12225	12225
12226	12226
12227	12227	SB3997- 340 -LRB103 43686 LNS 77044 b SB3997 - 340 - LRB103 43686 LNS 77044 b
12228	12228	SB3997 - 340 - LRB103 43686 LNS 77044 b
12229	12229	1 includes, at minimum, diverse sets of stakeholders; a
12230	12230	2 review of best practices in calculating the value of
12231	12231	3 distributed energy resource benefits; a review of the full
12232	12232	4 value of the distributed energy resources and the manner
12233	12233	5 in which each component of that value is or is not
12234	12234	6 otherwise compensated; and assessments of how the value of
12235	12235	7 distributed energy resources may evolve based on the
12236	12236	8 present and future technological capabilities of
12237	12237	9 distributed energy resources and based on present and
12238	12238	10 future grid needs.
12239	12239	11 (2) The Commission's final order concluding this
12240	12240	12 investigation shall establish an annual process and
12241	12241	13 formula for the compensation of distributed generation and
12242	12242	14 energy storage systems, and an initial set of inputs for
12243	12243	15 that formula. The Commission's final order concluding this
12244	12244	16 investigation shall establish base rebates that compensate
12245	12245	17 distributed generation, community renewable generation
12246	12246	18 projects and energy storage systems for the system-wide
12247	12247	19 grid services that they provide. Those base rebate values
12248	12248	20 shall be consistent across the state, and shall not vary
12249	12249	21 by customer, customer class, customer location, or any
12250	12250	22 other variable. With respect to rebates for distributed
12251	12251	23 generation or community renewable generation projects,
12252	12252	24 that rebate shall not be lower than $250 per kilowatt of
12253	12253	25 nameplate generating capacity of the distributed
12254	12254	26 generation or community renewable generation project. The
12255	12255
12256	12256
12257	12257
12258	12258
12259	12259
12260	12260	SB3997 - 340 - LRB103 43686 LNS 77044 b
12261	12261
12262	12262
12263	12263	SB3997- 341 -LRB103 43686 LNS 77044 b SB3997 - 341 - LRB103 43686 LNS 77044 b
12264	12264	SB3997 - 341 - LRB103 43686 LNS 77044 b
12265	12265	1 Commission's final order concluding this proceeding shall
12266	12266	2 also direct the utilities to update the formula, on an
12267	12267	3 annual basis, with inputs derived from their integrated
12268	12268	4 grid plans developed pursuant to Section 16-105.17. The
12269	12269	5 base rebate shall be updated annually based on the annual
12270	12270	6 updates to the formula inputs, but, with respect to
12271	12271	7 rebates for distributed generation or community renewable
12272	12272	8 generation projects, shall be no lower than $250 per
12273	12273	9 kilowatt of nameplate generating capacity of the
12274	12274	10 distributed generation or community renewable generation
12275	12275	11 project.
12276	12276	12 (3) The Commission shall also determine, as a part of
12277	12277	13 its investigation under this subsection, whether
12278	12278	14 distributed energy resources can provide any additive
12279	12279	15 services. Those additive services may include services
12280	12280	16 that are provided through utility-controlled responses to
12281	12281	17 grid conditions. If the Commission determines that
12282	12282	18 distributed energy resources can provide additive grid
12283	12283	19 services, the Commission shall determine the terms and
12284	12284	20 conditions for the operation and compensation of those
12285	12285	21 services. That compensation shall be above and beyond the
12286	12286	22 base rebate that the distributed energy generation,
12287	12287	23 community renewable generation project and energy storage
12288	12288	24 system receives. Compensation for additive services may
12289	12289	25 vary by location, time, performance characteristics,
12290	12290	26 technology types, or other variables.
12291	12291
12292	12292
12293	12293
12294	12294
12295	12295
12296	12296	SB3997 - 341 - LRB103 43686 LNS 77044 b
12297	12297
12298	12298
12299	12299	SB3997- 342 -LRB103 43686 LNS 77044 b SB3997 - 342 - LRB103 43686 LNS 77044 b
12300	12300	SB3997 - 342 - LRB103 43686 LNS 77044 b
12301	12301	1 (4) The Commission shall ensure that compensation for
12302	12302	2 distributed energy resources, including base rebates and
12303	12303	3 any payments for additive services, shall reflect all
12304	12304	4 reasonably known and measurable values of the distributed
12305	12305	5 generation over its full expected useful life.
12306	12306	6 Compensation for additive services shall reflect, but
12307	12307	7 shall not be limited to, any geographic, time-based,
12308	12308	8 performance-based, and other benefits of distributed
12309	12309	9 generation, as well as the present and future
12310	12310	10 technological capabilities of distributed energy resources
12311	12311	11 and present and future grid needs.
12312	12312	12 (5) The Commission shall consider the electric
12313	12313	13 utility's integrated grid plan developed pursuant to
12314	12314	14 Section 16-105.17 of this Act to help identify the value
12315	12315	15 of distributed energy resources for the purpose of
12316	12316	16 calculating the compensation described in this subsection.
12317	12317	17 (6) The Commission shall determine additional
12318	12318	18 compensation for distributed energy resources that creates
12319	12319	19 savings and value on the distribution system by being
12320	12320	20 co-located or in close proximity to electric vehicle
12321	12321	21 charging infrastructure in use by medium-duty and
12322	12322	22 heavy-duty vehicles, primarily serving environmental
12323	12323	23 justice communities, as outlined in the utility integrated
12324	12324	24 grid planning process under Section 16-105.17 of this Act.
12325	12325	25 No later than 60 days after the Commission enters its
12326	12326	26 final order under this subsection (e), each utility shall file
12327	12327
12328	12328
12329	12329
12330	12330
12331	12331
12332	12332	SB3997 - 342 - LRB103 43686 LNS 77044 b
12333	12333
12334	12334
12335	12335	SB3997- 343 -LRB103 43686 LNS 77044 b SB3997 - 343 - LRB103 43686 LNS 77044 b
12336	12336	SB3997 - 343 - LRB103 43686 LNS 77044 b
12337	12337	1 its updated tariff or tariffs in compliance with the order,
12338	12338	2 including new tariffs for the recovery of costs incurred under
12339	12339	3 this subsection (e) that shall provide for volumetric-based
12340	12340	4 cost recovery, and the Commission shall approve, or approve
12341	12341	5 with modification, the tariff or tariffs within 240 days after
12342	12342	6 the utility's filing.
12343	12343	7 (f) Notwithstanding any provision of this Act to the
12344	12344	8 contrary, the owner or operator of a community renewable
12345	12345	9 generation project as defined in Section 1-10 of the Illinois
12346	12346	10 Power Agency Act shall also be eligible to apply for the rebate
12347	12347	11 described in this Section. The owner or operator of the
12348	12348	12 community renewable generation project may apply for a rebate
12349	12349	13 only if the owner or operator, or previous owner or operator,
12350	12350	14 of the community renewable generation project has not already
12351	12351	15 submitted an application, and, regardless of whether the
12352	12352	16 subscriber is a residential or non-residential customer, may
12353	12353	17 be allowed the amount identified in paragraph (1) of
12354	12354	18 subsection (c) applicable on the date that the application is
12355	12355	19 submitted.
12356	12356	20 (g) The owner of the distributed generation or community
12357	12357	21 renewable generation project may apply for the rebate or
12358	12358	22 rebates approved under this Section at the time of execution
12359	12359	23 of an interconnection agreement with the distribution utility
12360	12360	24 and shall receive the value available at that time of
12361	12361	25 execution of the interconnection agreement, provided the
12362	12362	26 project reaches mechanical completion within 24 months after
12363	12363
12364	12364
12365	12365
12366	12366
12367	12367
12368	12368	SB3997 - 343 - LRB103 43686 LNS 77044 b
12369	12369
12370	12370
12371	12371	SB3997- 344 -LRB103 43686 LNS 77044 b SB3997 - 344 - LRB103 43686 LNS 77044 b
12372	12372	SB3997 - 344 - LRB103 43686 LNS 77044 b
12373	12373	1 execution of the interconnection agreement. If the project has
12374	12374	2 not reached mechanical completion within 24 months after
12375	12375	3 execution, the owner may reapply for the rebate or rebates
12376	12376	4 approved under this Section available at the time of
12377	12377	5 application and shall receive the value available at the time
12378	12378	6 of application. The utility shall issue the rebate no later
12379	12379	7 than 60 days after the project is energized. In the event the
12380	12380	8 application is incomplete or the utility is otherwise unable
12381	12381	9 to calculate the payment based on the information provided by
12382	12382	10 the owner, the utility shall issue the payment no later than 60
12383	12383	11 days after the application is complete or all requested
12384	12384	12 information is received.
12385	12385	13 (h) An electric utility shall recover from its retail
12386	12386	14 customers all of the costs of the rebates made under a tariff
12387	12387	15 or tariffs approved under subsection (d) of this Section,
12388	12388	16 including, but not limited to, the value of the rebates and all
12389	12389	17 costs incurred by the utility to comply with and implement
12390	12390	18 subsections (b) and (c) of this Section, but not including
12391	12391	19 costs incurred by the utility to comply with and implement
12392	12392	20 subsection (e) of this Section, consistent with the following
12393	12393	21 provisions:
12394	12394	22 (1) The utility shall defer the full amount of its
12395	12395	23 costs as a regulatory asset. The total costs deferred as a
12396	12396	24 regulatory asset shall be amortized over a 15-year period.
12397	12397	25 The unamortized balance shall be recognized as of December
12398	12398	26 31 for a given year. The utility shall also earn a return
12399	12399
12400	12400
12401	12401
12402	12402
12403	12403
12404	12404	SB3997 - 344 - LRB103 43686 LNS 77044 b
12405	12405
12406	12406
12407	12407	SB3997- 345 -LRB103 43686 LNS 77044 b SB3997 - 345 - LRB103 43686 LNS 77044 b
12408	12408	SB3997 - 345 - LRB103 43686 LNS 77044 b
12409	12409	1 on the total of the unamortized balance of the regulatory
12410	12410	2 assets, less any deferred taxes related to the unamortized
12411	12411	3 balance, at an annual rate equal to the utility's weighted
12412	12412	4 average cost of capital that includes, based on a year-end
12413	12413	5 capital structure, the utility's actual cost of debt for
12414	12414	6 the applicable calendar year and a cost of equity, which
12415	12415	7 shall be calculated as the sum of (i) the average for the
12416	12416	8 applicable calendar year of the monthly average yields of
12417	12417	9 30-year U.S. Treasury bonds published by the Board of
12418	12418	10 Governors of the Federal Reserve System in its weekly H.15
12419	12419	11 Statistical Release or successor publication; and (ii) 580
12420	12420	12 basis points, including a revenue conversion factor
12421	12421	13 calculated to recover or refund all additional income
12422	12422	14 taxes that may be payable or receivable as a result of that
12423	12423	15 return.
12424	12424	16 When an electric utility creates a regulatory asset
12425	12425	17 under the provisions of this paragraph (1) of subsection
12426	12426	18 (h), the costs are recovered over a period during which
12427	12427	19 customers also receive a benefit, which is in the public
12428	12428	20 interest. Accordingly, it is the intent of the General
12429	12429	21 Assembly that an electric utility that elects to create a
12430	12430	22 regulatory asset under the provisions of this paragraph
12431	12431	23 (1) shall recover all of the associated costs, including,
12432	12432	24 but not limited to, its cost of capital as set forth in
12433	12433	25 this paragraph (1). After the Commission has approved the
12434	12434	26 prudence and reasonableness of the costs that comprise the
12435	12435
12436	12436
12437	12437
12438	12438
12439	12439
12440	12440	SB3997 - 345 - LRB103 43686 LNS 77044 b
12441	12441
12442	12442
12443	12443	SB3997- 346 -LRB103 43686 LNS 77044 b SB3997 - 346 - LRB103 43686 LNS 77044 b
12444	12444	SB3997 - 346 - LRB103 43686 LNS 77044 b
12445	12445	1 regulatory asset, the electric utility shall be permitted
12446	12446	2 to recover all such costs, and the value and
12447	12447	3 recoverability through rates of the associated regulatory
12448	12448	4 asset shall not be limited, altered, impaired, or reduced.
12449	12449	5 To enable the financing of the incremental capital
12450	12450	6 expenditures, including regulatory assets, for electric
12451	12451	7 utilities that serve less than 3,000,000 retail customers
12452	12452	8 but more than 500,000 retail customers in the State, the
12453	12453	9 utility's actual year-end capital structure that includes
12454	12454	10 a common equity ratio, excluding goodwill, of up to and
12455	12455	11 including 50% of the total capital structure shall be
12456	12456	12 deemed reasonable and used to set rates.
12457	12457	13 (2) The utility, at its election, may recover all of
12458	12458	14 the costs as part of a filing for a general increase in
12459	12459	15 rates under Article IX of this Act, as part of an annual
12460	12460	16 filing to update a performance-based formula rate under
12461	12461	17 subsection (d) of Section 16-108.5 of this Act, or through
12462	12462	18 an automatic adjustment clause tariff, provided that
12463	12463	19 nothing in this paragraph (2) permits the double recovery
12464	12464	20 of such costs from customers. If the utility elects to
12465	12465	21 recover the costs it incurs under subsections (b) and (c)
12466	12466	22 through an automatic adjustment clause tariff, the utility
12467	12467	23 may file its proposed tariff together with the tariff it
12468	12468	24 files under subsection (b) of this Section or at a later
12469	12469	25 time. The proposed tariff shall provide for an annual
12470	12470	26 reconciliation, less any deferred taxes related to the
12471	12471
12472	12472
12473	12473
12474	12474
12475	12475
12476	12476	SB3997 - 346 - LRB103 43686 LNS 77044 b
12477	12477
12478	12478
12479	12479	SB3997- 347 -LRB103 43686 LNS 77044 b SB3997 - 347 - LRB103 43686 LNS 77044 b
12480	12480	SB3997 - 347 - LRB103 43686 LNS 77044 b
12481	12481	1 reconciliation, with interest at an annual rate of return
12482	12482	2 equal to the utility's weighted average cost of capital as
12483	12483	3 calculated under paragraph (1) of this subsection (h),
12484	12484	4 including a revenue conversion factor calculated to
12485	12485	5 recover or refund all additional income taxes that may be
12486	12486	6 payable or receivable as a result of that return, of the
12487	12487	7 revenue requirement reflected in rates for each calendar
12488	12488	8 year, beginning with the calendar year in which the
12489	12489	9 utility files its automatic adjustment clause tariff under
12490	12490	10 this subsection (h), with what the revenue requirement
12491	12491	11 would have been had the actual cost information for the
12492	12492	12 applicable calendar year been available at the filing
12493	12493	13 date. The Commission shall review the proposed tariff and
12494	12494	14 may make changes to the tariff that are consistent with
12495	12495	15 this Section and with the Commission's authority under
12496	12496	16 Article IX of this Act, subject to notice and hearing.
12497	12497	17 Following notice and hearing, the Commission shall issue
12498	12498	18 an order approving, or approving with modification, such
12499	12499	19 tariff no later than 240 days after the utility files its
12500	12500	20 tariff.
12501	12501	21 (i) An electric utility shall recover from its retail
12502	12502	22 customers, on a volumetric basis, all of the costs of the
12503	12503	23 rebates made under a tariff or tariffs placed into effect
12504	12504	24 under subsection (e) of this Section, including, but not
12505	12505	25 limited to, the value of the rebates and all costs incurred by
12506	12506	26 the utility to comply with and implement subsection (e) of
12507	12507
12508	12508
12509	12509
12510	12510
12511	12511
12512	12512	SB3997 - 347 - LRB103 43686 LNS 77044 b
12513	12513
12514	12514
12515	12515	SB3997- 348 -LRB103 43686 LNS 77044 b SB3997 - 348 - LRB103 43686 LNS 77044 b
12516	12516	SB3997 - 348 - LRB103 43686 LNS 77044 b
12517	12517	1 this Section, consistent with the following provisions:
12518	12518	2 (1) The utility may defer a portion of its costs as a
12519	12519	3 regulatory asset. The Commission shall determine the
12520	12520	4 portion that may be appropriately deferred as a regulatory
12521	12521	5 asset. Factors that the Commission shall consider in
12522	12522	6 determining the portion of costs that shall be deferred as
12523	12523	7 a regulatory asset include, but are not limited to: (i)
12524	12524	8 whether and the extent to which a cost effectively
12525	12525	9 deferred or avoided other distribution system operating
12526	12526	10 costs or capital expenditures; (ii) the extent to which a
12527	12527	11 cost provides environmental benefits; (iii) the extent to
12528	12528	12 which a cost improves system reliability or resilience;
12529	12529	13 (iv) the electric utility's distribution system plan
12530	12530	14 developed pursuant to Section 16-105.17 of this Act; (v)
12531	12531	15 the extent to which a cost advances equity principles; and
12532	12532	16 (vi) such other factors as the Commission deems
12533	12533	17 appropriate. The remainder of costs shall be deemed an
12534	12534	18 operating expense and shall be recoverable if found
12535	12535	19 prudent and reasonable by the Commission.
12536	12536	20 The total costs deferred as a regulatory asset shall
12537	12537	21 be amortized over a 15-year period. The unamortized
12538	12538	22 balance shall be recognized as of December 31 for a given
12539	12539	23 year. The utility shall also earn a return on the total of
12540	12540	24 the unamortized balance of the regulatory assets, less any
12541	12541	25 deferred taxes related to the unamortized balance, at an
12542	12542	26 annual rate equal to the utility's weighted average cost
12543	12543
12544	12544
12545	12545
12546	12546
12547	12547
12548	12548	SB3997 - 348 - LRB103 43686 LNS 77044 b
12549	12549
12550	12550
12551	12551	SB3997- 349 -LRB103 43686 LNS 77044 b SB3997 - 349 - LRB103 43686 LNS 77044 b
12552	12552	SB3997 - 349 - LRB103 43686 LNS 77044 b
12553	12553	1 of capital that includes, based on a year-end capital
12554	12554	2 structure, the utility's actual cost of debt for the
12555	12555	3 applicable calendar year and a cost of equity, which shall
12556	12556	4 be calculated as the sum of: (I) the average for the
12557	12557	5 applicable calendar year of the monthly average yields of
12558	12558	6 30-year U.S. Treasury bonds published by the Board of
12559	12559	7 Governors of the Federal Reserve System in its weekly H.15
12560	12560	8 Statistical Release or successor publication; and (II) 580
12561	12561	9 basis points, including a revenue conversion factor
12562	12562	10 calculated to recover or refund all additional income
12563	12563	11 taxes that may be payable or receivable as a result of that
12564	12564	12 return.
12565	12565	13 (2) The utility may recover all of the costs through
12566	12566	14 an automatic adjustment clause tariff, on a volumetric
12567	12567	15 basis. The utility may file its proposed cost-recovery
12568	12568	16 tariff together with the tariff it files under subsection
12569	12569	17 (e) of this Section or at a later time. The proposed tariff
12570	12570	18 shall provide for an annual reconciliation, less any
12571	12571	19 deferred taxes related to the reconciliation, with
12572	12572	20 interest at an annual rate of return equal to the
12573	12573	21 utility's weighted average cost of capital as calculated
12574	12574	22 under paragraph (1) of this subsection (i), including a
12575	12575	23 revenue conversion factor calculated to recover or refund
12576	12576	24 all additional income taxes that may be payable or
12577	12577	25 receivable as a result of that return, of the revenue
12578	12578	26 requirement reflected in rates for each calendar year,
12579	12579
12580	12580
12581	12581
12582	12582
12583	12583
12584	12584	SB3997 - 349 - LRB103 43686 LNS 77044 b
12585	12585
12586	12586
12587	12587	SB3997- 350 -LRB103 43686 LNS 77044 b SB3997 - 350 - LRB103 43686 LNS 77044 b
12588	12588	SB3997 - 350 - LRB103 43686 LNS 77044 b
12589	12589	1 beginning with the calendar year in which the utility
12590	12590	2 files its automatic adjustment clause tariff under this
12591	12591	3 subsection (i), with what the revenue requirement would
12592	12592	4 have been had the actual cost information for the
12593	12593	5 applicable calendar year been available at the filing
12594	12594	6 date. The Commission shall review the proposed tariff and
12595	12595	7 may make changes to the tariff that are consistent with
12596	12596	8 this Section and with the Commission's authority under
12597	12597	9 Article IX of this Act, subject to notice and hearing.
12598	12598	10 Following notice and hearing, the Commission shall issue
12599	12599	11 an order approving, or approving with modification, such
12600	12600	12 tariff no later than 240 days after the utility files its
12601	12601	13 tariff.
12602	12602	14 (j) No later than 90 days after the Commission enters an
12603	12603	15 order, or order on rehearing, whichever is later, approving an
12604	12604	16 electric utility's proposed tariff under this Section, the
12605	12605	17 electric utility shall provide notice of the availability of
12606	12606	18 rebates under this Section.
12607	12607	19 (Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
12608	12608	20 (220 ILCS 5/16-135)
12609	12609	21 Sec. 16-135. Energy Storage Program.
12610	12610	22 (a) The Illinois General Assembly hereby finds and
12611	12611	23 declares that:
12612	12612	24 (1) Energy storage systems provide opportunities to:
12613	12613	25 (A) reduce costs to ratepayers directly or
12614	12614
12615	12615
12616	12616
12617	12617
12618	12618
12619	12619	SB3997 - 350 - LRB103 43686 LNS 77044 b
12620	12620
12621	12621
12622	12622	SB3997- 351 -LRB103 43686 LNS 77044 b SB3997 - 351 - LRB103 43686 LNS 77044 b
12623	12623	SB3997 - 351 - LRB103 43686 LNS 77044 b
12624	12624	1 indirectly by avoiding or deferring the need for
12625	12625	2 investment in new generation and for upgrades to
12626	12626	3 systems for the transmission and distribution of
12627	12627	4 electricity;
12628	12628	5 (B) reduce the use of fossil fuels for meeting
12629	12629	6 demand during peak load periods;
12630	12630	7 (C) provide ancillary services such as frequency
12631	12631	8 response, load following, and voltage support;
12632	12632	9 (D) assist electric utilities with integrating
12633	12633	10 sources of renewable energy into the grid for the
12634	12634	11 transmission and distribution of electricity, and with
12635	12635	12 maintaining grid stability;
12636	12636	13 (E) support diversification of energy resources;
12637	12637	14 (F) enhance the resilience and reliability of the
12638	12638	15 electric grid; and
12639	12639	16 (G) reduce greenhouse gas emissions and other air
12640	12640	17 pollutants resulting from power generation, thereby
12641	12641	18 minimizing public health impacts that result from
12642	12642	19 power generation.
12643	12643	20 (2) There are significant barriers to obtaining the
12644	12644	21 benefits of energy storage systems, including inadequate
12645	12645	22 valuation of the services that energy storage can provide
12646	12646	23 to the grid and the public.
12647	12647	24 (3) It is in the public interest to:
12648	12648	25 (A) develop a robust competitive market for
12649	12649	26 existing and new providers of energy storage systems
12650	12650
12651	12651
12652	12652
12653	12653
12654	12654
12655	12655	SB3997 - 351 - LRB103 43686 LNS 77044 b
12656	12656
12657	12657
12658	12658	SB3997- 352 -LRB103 43686 LNS 77044 b SB3997 - 352 - LRB103 43686 LNS 77044 b
12659	12659	SB3997 - 352 - LRB103 43686 LNS 77044 b
12660	12660	1 in order to leverage Illinois' position as a leader in
12661	12661	2 advanced energy and to capture the potential for
12662	12662	3 economic development;
12663	12663	4 (B) implement targets and programs to achieve
12664	12664	5 deployment of energy storage systems; and
12665	12665	6 (C) modernize distributed energy resource programs
12666	12666	7 and interconnection standards to lower costs and
12667	12667	8 efficiently deploy energy storage systems in order to
12668	12668	9 increase economic development and job creation within
12669	12669	10 the state's clean energy economy.
12670	12670	11 (b) In this Section:
12671	12671	12 "Energy storage peak standard" means a percentage of
12672	12672	13 annual retail electricity sales during peak hours that an
12673	12673	14 electric utility must derive from electricity discharged from
12674	12674	15 eligible energy storage systems.
12675	12675	16 "Deployment" means the installation of energy storage
12676	12676	17 systems through a variety of mechanisms, including utility
12677	12677	18 procurement, customer installation, or other processes.
12678	12678	19 "Electric utility" has the same meaning as provided in
12679	12679	20 Section 16-102 of this Act.
12680	12680	21 "Energy storage system" means a technology that is capable
12681	12681	22 of absorbing zero-carbon energy, storing it for a period of
12682	12682	23 time, and redelivering that energy after it has been stored in
12683	12683	24 order to provide direct or indirect benefits to the broader
12684	12684	25 electricity system. The term includes, but is not limited to,
12685	12685	26 electrochemical, thermal, and electromechanical technologies.
12686	12686
12687	12687
12688	12688
12689	12689
12690	12690
12691	12691	SB3997 - 352 - LRB103 43686 LNS 77044 b
12692	12692
12693	12693
12694	12694	SB3997- 353 -LRB103 43686 LNS 77044 b SB3997 - 353 - LRB103 43686 LNS 77044 b
12695	12695	SB3997 - 353 - LRB103 43686 LNS 77044 b
12696	12696	1 "Nonwires alternatives solicitation" means a utility
12697	12697	2 solicitation for third-party-owned or utility-owned
12698	12698	3 distributed energy resources that uses nontraditional
12699	12699	4 solutions to defer or replace planned investment on the
12700	12700	5 distribution or transmission system.
12701	12701	6 "Total peak demand" means the highest hourly electricity
12702	12702	7 demand for an electric utility in a given year, measured in
12703	12703	8 megawatts, from all of the electric utility's customers of
12704	12704	9 distribution service.
12705	12705	10 (c) The Commission, in consultation with the Illinois
12706	12706	11 Power Agency, shall initiate a proceeding to examine specific
12707	12707	12 programs, mechanisms, and policies that could support the
12708	12708	13 deployment of energy storage systems. The Illinois Commerce
12709	12709	14 Commission shall engage a broad group of Illinois
12710	12710	15 stakeholders, including electric utilities, the energy storage
12711	12711	16 industry, the renewable energy industry, and others to inform
12712	12712	17 the proceeding. The proceeding must, at minimum:
12713	12713	18 (1) develop a framework to identify and measure the
12714	12714	19 potential costs, benefits, that deployment of energy
12715	12715	20 storage could produce, as well as barriers to realizing
12716	12716	21 such benefits, including, but not limited to:
12717	12717	22 (A) avoided cost and deferred investments in
12718	12718	23 generation, transmission, and distribution facilities;
12719	12719	24 (B) reduced ancillary services costs;
12720	12720	25 (C) reduced transmission and distribution
12721	12721	26 congestion;
12722	12722
12723	12723
12724	12724
12725	12725
12726	12726
12727	12727	SB3997 - 353 - LRB103 43686 LNS 77044 b
12728	12728
12729	12729
12730	12730	SB3997- 354 -LRB103 43686 LNS 77044 b SB3997 - 354 - LRB103 43686 LNS 77044 b
12731	12731	SB3997 - 354 - LRB103 43686 LNS 77044 b
12732	12732	1 (D) lower peak power costs and reduced capacity
12733	12733	2 costs;
12734	12734	3 (E) reduced costs for emergency power supplies
12735	12735	4 during outages;
12736	12736	5 (F) reduced curtailment of renewable energy
12737	12737	6 generators;
12738	12738	7 (G) reduced greenhouse gas emissions and other
12739	12739	8 criteria air pollutants;
12740	12740	9 (H) increased grid hosting capacity of renewable
12741	12741	10 energy generators that produce energy on an
12742	12742	11 intermittent basis;
12743	12743	12 (I) increased reliability and resilience of the
12744	12744	13 electric grid;
12745	12745	14 (J) reduced line losses;
12746	12746	15 (K) increased resource diversification;
12747	12747	16 (L) increased economic development;
12748	12748	17 (2) analyze and estimate:
12749	12749	18 (A) the impact on the system's ability to
12750	12750	19 integrate renewable resources;
12751	12751	20 (B) the benefits of addition of storage at
12752	12752	21 specific locations, such as at existing peaking units
12753	12753	22 or locations on the grid close to large load centers;
12754	12754	23 (C) the impact on grid reliability and power
12755	12755	24 quality; and
12756	12756	25 (D) the effect on retail electric rates and supply
12757	12757	26 rates over the useful life of a given energy storage
12758	12758
12759	12759
12760	12760
12761	12761
12762	12762
12763	12763	SB3997 - 354 - LRB103 43686 LNS 77044 b
12764	12764
12765	12765
12766	12766	SB3997- 355 -LRB103 43686 LNS 77044 b SB3997 - 355 - LRB103 43686 LNS 77044 b
12767	12767	SB3997 - 355 - LRB103 43686 LNS 77044 b
12768	12768	1 system; and
12769	12769	2 (3) evaluate and identify cost-effective policies and
12770	12770	3 programs to support the deployment of energy storage
12771	12771	4 systems, including, but not limited to:
12772	12772	5 (A) incentive programs;
12773	12773	6 (B) energy storage peak standards;
12774	12774	7 (C) nonwires alternative solicitation;
12775	12775	8 (D) peak demand reduction programs for
12776	12776	9 behind-the-meter storage for all customer classes;
12777	12777	10 (E) value of distributed energy resources
12778	12778	11 programs;
12779	12779	12 (F) tax incentives;
12780	12780	13 (G) time-varying rates;
12781	12781	14 (H) updating of interconnection processes and
12782	12782	15 metering standards; and
12783	12783	16 (I) procurement by the Illinois Power Agency of
12784	12784	17 energy storage resources.
12785	12785	18 (d) The Commission shall, no later than May 31, 2022,
12786	12786	19 submit to the General Assembly and the Governor any
12787	12787	20 recommendations for additional legislative, regulatory, or
12788	12788	21 executive actions based on the findings of the proceeding.
12789	12789	22 (e) At the conclusion of the proceeding required under
12790	12790	23 subsection (c), the Commission shall consider and recommend to
12791	12791	24 the Governor and General Assembly energy storage deployment
12792	12792	25 targets, if any, for each electric utility that serves more
12793	12793	26 than 200,000 customers to be achieved by December 31, 2032,
12794	12794
12795	12795
12796	12796
12797	12797
12798	12798
12799	12799	SB3997 - 355 - LRB103 43686 LNS 77044 b
12800	12800
12801	12801
12802	12802	SB3997- 356 -LRB103 43686 LNS 77044 b SB3997 - 356 - LRB103 43686 LNS 77044 b
12803	12803	SB3997 - 356 - LRB103 43686 LNS 77044 b
12804	12804	1 including recommended interim targets.
12805	12805	2 (f) In setting recommendations for energy storage
12806	12806	3 deployment targets, the Commission shall:
12807	12807	4 (1) take into account the costs and benefits of
12808	12808	5 procuring energy storage according to the framework
12809	12809	6 developed in the proceeding under subsection (c);
12810	12810	7 (2) consider establishing specific subcategories of
12811	12811	8 deployment of systems by point of interconnection or
12812	12812	9 application.
12813	12813	10 (g) The Commission, in its role as the relevant electric
12814	12814	11 retail regulatory authority for Illinois, shall initiate a
12815	12815	12 workshop process no later than February 1, 2025, for the
12816	12816	13 purpose of facilitating the development of an initial forward
12817	12817	14 storage procurement process and model contract for the
12818	12818	15 procurement of utility-scale energy storage resources,
12819	12819	16 hereafter "initial procurement". The workshops shall be
12820	12820	17 coordinated by the staff of the Commission, or a facilitator
12821	12821	18 or any other experts or consultants retained by the staff of
12822	12822	19 the Commission, in consultation with the Illinois Power
12823	12823	20 Agency. The workshop process shall be designed to develop an
12824	12824	21 effective initial procurement of no more than 1,500 megawatts
12825	12825	22 of utility-scale stand-alone energy storage resources whereby
12826	12826	23 the Illinois Power Agency shall be positioned to have
12827	12827	24 developed a confidential benchmark and solicited, received,
12828	12828	25 and opened sealed bids for such initial procurement to
12829	12829	26 conclude not later than August 26, 2025. The workshop process
12830	12830
12831	12831
12832	12832
12833	12833
12834	12834
12835	12835	SB3997 - 356 - LRB103 43686 LNS 77044 b
12836	12836
12837	12837
12838	12838	SB3997- 357 -LRB103 43686 LNS 77044 b SB3997 - 357 - LRB103 43686 LNS 77044 b
12839	12839	SB3997 - 357 - LRB103 43686 LNS 77044 b
12840	12840	1 shall conclude no later than April 1, 2025. Following the
12841	12841	2 workshop process, the staff of the Commission, or the
12842	12842	3 facilitator retained by the staff, shall prepare and submit a
12843	12843	4 report to the Governor, the General Assembly, and the
12844	12844	5 Commission no later than May 1, 2025, that summarizes the
12845	12845	6 information obtained through the workshop process and
12846	12846	7 recommends the most effective procurement process, structure,
12847	12847	8 and contract terms that would result in a successful initial
12848	12848	9 procurement.
12849	12849	10 Specifically, for the purposes of this initial procurement
12850	12850	11 only, the report shall at a minimum include:
12851	12851	12 (1) a definition and key terms of contracting
12852	12852	13 structures, including, but not limited to, tolling
12853	12853	14 agreements and indexed credits, and whether they are used
12854	12854	15 in other states;
12855	12855	16 (2) an assessment of changes to the contract
12856	12856	17 structures used by other states necessary to fit the legal
12857	12857	18 and regulatory structure of Illinois;
12858	12858	19 (3) commercial terms required for the contract to be
12859	12859	20 financeable;
12860	12860	21 (4) contract structures that avoid a requirement that
12861	12861	22 contracting utilities consider such agreement a capital
12862	12862	23 lease under generally accepted accounting principles,
12863	12863	24 including the appropriate signatories;
12864	12864	25 (5) necessary or appropriate roles for the owner of an
12865	12865	26 energy storage system selected in a procurement to, either
12866	12866
12867	12867
12868	12868
12869	12869
12870	12870
12871	12871	SB3997 - 357 - LRB103 43686 LNS 77044 b
12872	12872
12873	12873
12874	12874	SB3997- 358 -LRB103 43686 LNS 77044 b SB3997 - 358 - LRB103 43686 LNS 77044 b
12875	12875	SB3997 - 358 - LRB103 43686 LNS 77044 b
12876	12876	1 directly or through a third-party administrator which may
12877	12877	2 be an affiliate, be responsible for operation,
12878	12878	3 maintenance, dispatch, and other operational functions of
12879	12879	4 the energy storage system;
12880	12880	5 (6) other allocations of rights and responsibilities
12881	12881	6 between the winning bidder, the electric utility, and, if
12882	12882	7 applicable, the third-party administrator;
12883	12883	8 (7) an assessment of whether a contract length
12884	12884	9 different from 20 years is financeable;
12885	12885	10 (8) a model of a standard contract, including contract
12886	12886	11 terms and conditions, to be used by the Illinois Power
12887	12887	12 Agency and its procurement administrator for the initial
12888	12888	13 procurement;
12889	12889	14 (9) an analysis of whether 1,000 megawatts is the
12890	12890	15 appropriate size for the initial procurement and whether
12891	12891	16 additional procurements beyond August 2025 are valuable to
12892	12892	17 Illinois taking into consideration the amount of projects
12893	12893	18 in advanced stages of development and Illinois' need for
12894	12894	19 storage energy systems in order to ensure it can meet its
12895	12895	20 clean energy goals and to prevent or minimize any
12896	12896	21 anticipated resource adequacy shortfalls;
12897	12897	22 (10) an assessment of the appropriate cost recovery
12898	12898	23 and allocation structure that ensures electric utilities
12899	12899	24 can recover all of the costs associated with the
12900	12900	25 procurement of energy storage resources;
12901	12901	26 (11) an assessment of the appropriate geographic
12902	12902
12903	12903
12904	12904
12905	12905
12906	12906
12907	12907	SB3997 - 358 - LRB103 43686 LNS 77044 b
12908	12908
12909	12909
12910	12910	SB3997- 359 -LRB103 43686 LNS 77044 b SB3997 - 359 - LRB103 43686 LNS 77044 b
12911	12911	SB3997 - 359 - LRB103 43686 LNS 77044 b
12912	12912	1 location for the battery storage systems, including, but
12913	12913	2 not limited to:
12914	12914	3 (A) the geographic split of the megawatts of
12915	12915	4 capacity of the energy storage resources procured
12916	12916	5 pursuant to this initial procurement between those
12917	12917	6 interconnected to the Midcontinent ISO, Inc. and PJM
12918	12918	7 Interconnection, LLC; and
12919	12919	8 (B) the potential benefits of procuring one or
12920	12920	9 more projects within an area designated as an area of
12921	12921	10 the State certified by the Department of Commerce and
12922	12922	11 Economic Opportunity as an Enterprise Zone;
12923	12923	12 (12) an assessment of minimum application
12924	12924	13 requirements, such as having achieved interconnection
12925	12925	14 milestones, including, but not limited to:
12926	12926	15 (A) projects that have applied for approval for
12927	12927	16 surplus interconnection service or to transfer
12928	12928	17 existing capacity interconnection rights to the
12929	12929	18 relevant regional transmission organization and have
12930	12930	19 received a completeness determination following
12931	12931	20 completion of the initial review process and whether
12932	12932	21 it is beneficial if such projects are also colocated
12933	12933	22 with a renewable energy resource;
12934	12934	23 (B) for projects interconnected to MISO, projects
12935	12935	24 that have signed an interconnection agreement or
12936	12936	25 provided the most current deposit in the Midcontinent
12937	12937	26 ISO, Inc. definitive planning phase cycle 2021 or an
12938	12938
12939	12939
12940	12940
12941	12941
12942	12942
12943	12943	SB3997 - 359 - LRB103 43686 LNS 77044 b
12944	12944
12945	12945
12946	12946	SB3997- 360 -LRB103 43686 LNS 77044 b SB3997 - 360 - LRB103 43686 LNS 77044 b
12947	12947	SB3997 - 360 - LRB103 43686 LNS 77044 b
12948	12948	1 earlier definitive planning phase cycle; or
12949	12949	2 (C) for projects interconnected to PJM
12950	12950	3 Interconnection, LLC, projects that have received a
12951	12951	4 Phase 2 study; and
12952	12952	5 (13) an assessment of the impact of the costs and
12953	12953	6 benefits to Illinois ratepayers of these issues related to
12954	12954	7 this initial procurement.
12955	12955	8 Given the rapid actions required pursuant to this Section,
12956	12956	9 the procurement of any facilitator, expert, or consultant
12957	12957	10 pursuant to this subsection is exempt from the requirements of
12958	12958	11 Section 20-10 of the Illinois Procurement Code.
12959	12959	12 (Source: P.A. 102-662, eff. 9-15-21.)
12960	12960	13 Section 20. The Prevailing Wage Act is amended by changing
12961	12961	14 Section 2 as follows:
12962	12962	15 (820 ILCS 130/2)
12963	12963	16 Sec. 2. This Act applies to the wages of laborers,
12964	12964	17 mechanics and other workers employed in any public works, as
12965	12965	18 hereinafter defined, by any public body and to anyone under
12966	12966	19 contracts for public works. This includes any maintenance,
12967	12967	20 repair, assembly, or disassembly work performed on equipment
12968	12968	21 whether owned, leased, or rented.
12969	12969	22 As used in this Act, unless the context indicates
12970	12970	23 otherwise:
12971	12971	24 "Public works" means all fixed works constructed or
12972	12972
12973	12973
12974	12974
12975	12975
12976	12976
12977	12977	SB3997 - 360 - LRB103 43686 LNS 77044 b
12978	12978
12979	12979
12980	12980	SB3997- 361 -LRB103 43686 LNS 77044 b SB3997 - 361 - LRB103 43686 LNS 77044 b
12981	12981	SB3997 - 361 - LRB103 43686 LNS 77044 b
12982	12982	1 demolished by any public body, or paid for wholly or in part
12983	12983	2 out of public funds. "Public works" as defined herein includes
12984	12984	3 all projects financed in whole or in part with bonds, grants,
12985	12985	4 loans, or other funds made available by or through the State or
12986	12986	5 any of its political subdivisions, including but not limited
12987	12987	6 to: bonds issued under the Industrial Project Revenue Bond Act
12988	12988	7 (Article 11, Division 74 of the Illinois Municipal Code), the
12989	12989	8 Industrial Building Revenue Bond Act, the Illinois Finance
12990	12990	9 Authority Act, the Illinois Sports Facilities Authority Act,
12991	12991	10 or the Build Illinois Bond Act; loans or other funds made
12992	12992	11 available pursuant to the Build Illinois Act; loans or other
12993	12993	12 funds made available pursuant to the Riverfront Development
12994	12994	13 Fund under Section 10-15 of the River Edge Redevelopment Zone
12995	12995	14 Act; or funds from the Fund for Illinois' Future under Section
12996	12996	15 6z-47 of the State Finance Act, funds for school construction
12997	12997	16 under Section 5 of the General Obligation Bond Act, funds
12998	12998	17 authorized under Section 3 of the School Construction Bond
12999	12999	18 Act, funds for school infrastructure under Section 6z-45 of
13000	13000	19 the State Finance Act, and funds for transportation purposes
13001	13001	20 under Section 4 of the General Obligation Bond Act. "Public
13002	13002	21 works" also includes (i) all projects financed in whole or in
13003	13003	22 part with funds from the Environmental Protection Agency under
13004	13004	23 the Illinois Renewable Fuels Development Program Act for which
13005	13005	24 there is no project labor agreement; (ii) all work performed
13006	13006	25 pursuant to a public private agreement under the Public
13007	13007	26 Private Agreements for the Illiana Expressway Act or the
13008	13008
13009	13009
13010	13010
13011	13011
13012	13012
13013	13013	SB3997 - 361 - LRB103 43686 LNS 77044 b
13014	13014
13015	13015
13016	13016	SB3997- 362 -LRB103 43686 LNS 77044 b SB3997 - 362 - LRB103 43686 LNS 77044 b
13017	13017	SB3997 - 362 - LRB103 43686 LNS 77044 b
13018	13018	1 Public-Private Agreements for the South Suburban Airport Act;
13019	13019	2 (iii) all projects undertaken under a public-private agreement
13020	13020	3 under the Public-Private Partnerships for Transportation Act
13021	13021	4 or the Department of Natural Resources World Shooting and
13022	13022	5 Recreational Complex Act; and (iv) all transportation
13023	13023	6 facilities undertaken under a design-build contract or a
13024	13024	7 Construction Manager/General Contractor contract under the
13025	13025	8 Innovations for Transportation Infrastructure Act. "Public
13026	13026	9 works" also includes all projects at leased facility property
13027	13027	10 used for airport purposes under Section 35 of the Local
13028	13028	11 Government Facility Lease Act. "Public works" also includes
13029	13029	12 the construction of a new wind power facility by a business
13030	13030	13 designated as a High Impact Business under Section
13031	13031	14 5.5(a)(3)(E) of the Illinois Enterprise Zone Act, and the
13032	13032	15 construction of a new utility-scale solar power facility by a
13033	13033	16 business designated as a High Impact Business under Section
13034	13034	17 5.5(a)(3)(E-5) of the Illinois Enterprise Zone Act, the
13035	13035	18 construction of a new battery energy storage solution facility
13036	13036	19 by a business designated as a High Impact Business under
13037	13037	20 Section 5.5(a)(3)(I) of the Illinois Enterprise Zone Act, and
13038	13038	21 the construction of a high voltage direct current converter
13039	13039	22 station by a business designated as a High Impact Business
13040	13040	23 under Section 5.5(a)(3)(J) of the Illinois Enterprise Zone
13041	13041	24 Act. "Public works" also includes electric vehicle charging
13042	13042	25 station projects financed pursuant to the Electric Vehicle Act
13043	13043	26 and renewable energy projects required to pay the prevailing
13044	13044
13045	13045
13046	13046
13047	13047
13048	13048
13049	13049	SB3997 - 362 - LRB103 43686 LNS 77044 b
13050	13050
13051	13051
13052	13052	SB3997- 363 -LRB103 43686 LNS 77044 b SB3997 - 363 - LRB103 43686 LNS 77044 b
13053	13053	SB3997 - 363 - LRB103 43686 LNS 77044 b
13054	13054	1 wage pursuant to the Illinois Power Agency Act. "Public works"
13055	13055	2 also includes power washing projects by a public body or paid
13056	13056	3 for wholly or in part out of public funds in which steam or
13057	13057	4 pressurized water, with or without added abrasives or
13058	13058	5 chemicals, is used to remove paint or other coatings, oils or
13059	13059	6 grease, corrosion, or debris from a surface or to prepare a
13060	13060	7 surface for a coating. "Public works" does not include work
13061	13061	8 done directly by any public utility company, whether or not
13062	13062	9 done under public supervision or direction, or paid for wholly
13063	13063	10 or in part out of public funds. "Public works" also includes
13064	13064	11 construction projects performed by a third party contracted by
13065	13065	12 any public utility, as described in subsection (a) of Section
13066	13066	13 2.1, in public rights-of-way, as defined in Section 21-201 of
13067	13067	14 the Public Utilities Act, whether or not done under public
13068	13068	15 supervision or direction, or paid for wholly or in part out of
13069	13069	16 public funds. "Public works" also includes construction
13070	13070	17 projects that exceed 15 aggregate miles of new fiber optic
13071	13071	18 cable, performed by a third party contracted by any public
13072	13072	19 utility, as described in subsection (b) of Section 2.1, in
13073	13073	20 public rights-of-way, as defined in Section 21-201 of the
13074	13074	21 Public Utilities Act, whether or not done under public
13075	13075	22 supervision or direction, or paid for wholly or in part out of
13076	13076	23 public funds. "Public works" also includes any corrective
13077	13077	24 action performed pursuant to Title XVI of the Environmental
13078	13078	25 Protection Act for which payment from the Underground Storage
13079	13079	26 Tank Fund is requested. "Public works" also includes all
13080	13080
13081	13081
13082	13082
13083	13083
13084	13084
13085	13085	SB3997 - 363 - LRB103 43686 LNS 77044 b
13086	13086
13087	13087
13088	13088	SB3997- 364 -LRB103 43686 LNS 77044 b SB3997 - 364 - LRB103 43686 LNS 77044 b
13089	13089	SB3997 - 364 - LRB103 43686 LNS 77044 b
13090	13090	1 construction projects involving fixtures or permanent
13091	13091	2 attachments affixed to light poles that are owned by a public
13092	13092	3 body, including street light poles, traffic light poles, and
13093	13093	4 other lighting fixtures, whether or not done under public
13094	13094	5 supervision or direction, or paid for wholly or in part out of
13095	13095	6 public funds, unless the project is performed by employees
13096	13096	7 employed directly by the public body. "Public works" also
13097	13097	8 includes work performed subject to the Mechanical Insulation
13098	13098	9 Energy and Safety Assessment Act. "Public works" also includes
13099	13099	10 the removal, hauling, and transportation of biosolids, lime
13100	13100	11 sludge, and lime residue from a water treatment plant or
13101	13101	12 facility and the disposal of biosolids, lime sludge, and lime
13102	13102	13 residue removed from a water treatment plant or facility at a
13103	13103	14 landfill. "Public works" does not include projects undertaken
13104	13104	15 by the owner at an owner-occupied single-family residence or
13105	13105	16 at an owner-occupied unit of a multi-family residence. "Public
13106	13106	17 works" does not include work performed for soil and water
13107	13107	18 conservation purposes on agricultural lands, whether or not
13108	13108	19 done under public supervision or paid for wholly or in part out
13109	13109	20 of public funds, done directly by an owner or person who has
13110	13110	21 legal control of those lands.
13111	13111	22 "Construction" means all work on public works involving
13112	13112	23 laborers, workers or mechanics. This includes any maintenance,
13113	13113	24 repair, assembly, or disassembly work performed on equipment
13114	13114	25 whether owned, leased, or rented.
13115	13115	26 "Locality" means the county where the physical work upon
13116	13116
13117	13117
13118	13118
13119	13119
13120	13120
13121	13121	SB3997 - 364 - LRB103 43686 LNS 77044 b
13122	13122
13123	13123
13124	13124	SB3997- 365 -LRB103 43686 LNS 77044 b SB3997 - 365 - LRB103 43686 LNS 77044 b
13125	13125	SB3997 - 365 - LRB103 43686 LNS 77044 b
13126	13126	1 public works is performed, except (1) that if there is not
13127	13127	2 available in the county a sufficient number of competent
13128	13128	3 skilled laborers, workers and mechanics to construct the
13129	13129	4 public works efficiently and properly, "locality" includes any
13130	13130	5 other county nearest the one in which the work or construction
13131	13131	6 is to be performed and from which such persons may be obtained
13132	13132	7 in sufficient numbers to perform the work and (2) that, with
13133	13133	8 respect to contracts for highway work with the Department of
13134	13134	9 Transportation of this State, "locality" may at the discretion
13135	13135	10 of the Secretary of the Department of Transportation be
13136	13136	11 construed to include two or more adjacent counties from which
13137	13137	12 workers may be accessible for work on such construction.
13138	13138	13 "Public body" means the State or any officer, board or
13139	13139	14 commission of the State or any political subdivision or
13140	13140	15 department thereof, or any institution supported in whole or
13141	13141	16 in part by public funds, and includes every county, city,
13142	13142	17 town, village, township, school district, irrigation, utility,
13143	13143	18 reclamation improvement or other district and every other
13144	13144	19 political subdivision, district or municipality of the state
13145	13145	20 whether such political subdivision, municipality or district
13146	13146	21 operates under a special charter or not.
13147	13147	22 "Labor organization" means an organization that is the
13148	13148	23 exclusive representative of an employer's employees recognized
13149	13149	24 or certified pursuant to the National Labor Relations Act.
13150	13150	25 The terms "general prevailing rate of hourly wages",
13151	13151	26 "general prevailing rate of wages" or "prevailing rate of
13152	13152
13153	13153
13154	13154
13155	13155
13156	13156
13157	13157	SB3997 - 365 - LRB103 43686 LNS 77044 b
13158	13158
13159	13159
13160	13160	SB3997- 366 -LRB103 43686 LNS 77044 b SB3997 - 366 - LRB103 43686 LNS 77044 b
13161	13161	SB3997 - 366 - LRB103 43686 LNS 77044 b
13162	13162	1 wages" when used in this Act mean the hourly cash wages plus
13163	13163	2 annualized fringe benefits for training and apprenticeship
13164	13164	3 programs approved by the U.S. Department of Labor, Bureau of
13165	13165	4 Apprenticeship and Training, health and welfare, insurance,
13166	13166	5 vacations and pensions paid generally, in the locality in
13167	13167	6 which the work is being performed, to employees engaged in
13168	13168	7 work of a similar character on public works.
13169	13169	8 (Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
13170	13170	9 102-673, eff. 11-30-21; 102-813, eff. 5-13-22; 102-1094, eff.
13171	13171	10 6-15-22; 103-8, eff. 6-7-23; 103-327, eff. 1-1-24; 103-346,
13172	13172	11 eff. 1-1-24; 103-359, eff. 7-28-23; 103-447, eff. 8-4-23;
13173	13173	12 103-605, eff. 7-1-24.)
13174	13174	13 Section 99. Effective date. This Act takes effect upon
13175	13175	14 becoming law.
13176	13176	SB3997- 367 -LRB103 43686 LNS 77044 b 1 INDEX 2 Statutes amended in order of appearance SB3997- 367 -LRB103 43686 LNS 77044 b SB3997 - 367 - LRB103 43686 LNS 77044 b 1 INDEX 2 Statutes amended in order of appearance
13177	13177	SB3997- 367 -LRB103 43686 LNS 77044 b SB3997 - 367 - LRB103 43686 LNS 77044 b
13178	13178	SB3997 - 367 - LRB103 43686 LNS 77044 b
13179	13179	1 INDEX
13180	13180	2 Statutes amended in order of appearance
13181	13181
13182	13182
13183	13183
13184	13184
13185	13185
13186	13186	SB3997 - 366 - LRB103 43686 LNS 77044 b
13187	13187
13188	13188
13189	13189
13190	13190	SB3997- 367 -LRB103 43686 LNS 77044 b SB3997 - 367 - LRB103 43686 LNS 77044 b
13191	13191	SB3997 - 367 - LRB103 43686 LNS 77044 b
13192	13192	1 INDEX
13193	13193	2 Statutes amended in order of appearance
13194	13194
13195	13195
13196	13196
13197	13197
13198	13198
13199	13199	SB3997 - 367 - LRB103 43686 LNS 77044 b