IL
Illinois House Bill HB1056

Illinois 2025-2026 Regular Session

Illinois House Bill HB1056 Compare Versions

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1-HB1056 EngrossedLRB104 03146 SPS 13167 b HB1056 Engrossed LRB104 03146 SPS 13167 b
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1+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1056 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED: 820 ILCS 130/2 Amends the Prevailing Wage Act. Provides that the definition of "public works" includes all fixed works constructed or demolished on publicly-owned property. LRB104 03146 SPS 13167 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1056 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED: 820 ILCS 130/2 820 ILCS 130/2 Amends the Prevailing Wage Act. Provides that the definition of "public works" includes all fixed works constructed or demolished on publicly-owned property. LRB104 03146 SPS 13167 b LRB104 03146 SPS 13167 b A BILL FOR
2+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1056 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
3+820 ILCS 130/2 820 ILCS 130/2
4+820 ILCS 130/2
5+Amends the Prevailing Wage Act. Provides that the definition of "public works" includes all fixed works constructed or demolished on publicly-owned property.
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8+A BILL FOR
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311 1 AN ACT concerning employment.
412 2 Be it enacted by the People of the State of Illinois,
513 3 represented in the General Assembly:
6-4 Section 5. The Illinois Power Agency Act is amended by
7-5 changing Sections 1-10 and 1-75 as follows:
8-6 (20 ILCS 3855/1-10)
9-7 Sec. 1-10. Definitions.
10-8 "Agency" means the Illinois Power Agency.
11-9 "Agency loan agreement" means any agreement pursuant to
12-10 which the Illinois Finance Authority agrees to loan the
13-11 proceeds of revenue bonds issued with respect to a project to
14-12 the Agency upon terms providing for loan repayment
15-13 installments at least sufficient to pay when due all principal
16-14 of, interest and premium, if any, on those revenue bonds, and
17-15 providing for maintenance, insurance, and other matters in
18-16 respect of the project.
19-17 "Authority" means the Illinois Finance Authority.
20-18 "Brownfield site photovoltaic project" means photovoltaics
21-19 that are either:
22-20 (1) interconnected to an electric utility as defined
23-21 in this Section, a municipal utility as defined in this
24-22 Section, a public utility as defined in Section 3-105 of
25-23 the Public Utilities Act, or an electric cooperative as
14+4 Section 5. The Prevailing Wage Act is amended by changing
15+5 Section 2 as follows:
16+6 (820 ILCS 130/2)
17+7 Sec. 2. This Act applies to the wages of laborers,
18+8 mechanics and other workers employed in any public works, as
19+9 hereinafter defined, by any public body and to anyone under
20+10 contracts for public works. This includes any maintenance,
21+11 repair, assembly, or disassembly work performed on equipment
22+12 whether owned, leased, or rented.
23+13 As used in this Act, unless the context indicates
24+14 otherwise:
25+15 "Public works" means all fixed works constructed or
26+16 demolished by any public body, or paid for wholly or in part
27+17 out of public funds, or on publicly-owned property. "Public
28+18 works" as defined herein includes all projects financed in
29+19 whole or in part with bonds, grants, loans, or other funds made
30+20 available by or through the State or any of its political
31+21 subdivisions, including but not limited to: bonds issued under
32+22 the Industrial Project Revenue Bond Act (Article 11, Division
33+23 74 of the Illinois Municipal Code), the Industrial Building
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34-1 defined in Section 3-119 of the Public Utilities Act and
35-2 located at a site that is regulated by any of the following
36-3 entities under the following programs:
37-4 (A) the United States Environmental Protection
38-5 Agency under the federal Comprehensive Environmental
39-6 Response, Compensation, and Liability Act of 1980, as
40-7 amended;
41-8 (B) the United States Environmental Protection
42-9 Agency under the Corrective Action Program of the
43-10 federal Resource Conservation and Recovery Act, as
44-11 amended;
45-12 (C) the Illinois Environmental Protection Agency
46-13 under the Illinois Site Remediation Program; or
47-14 (D) the Illinois Environmental Protection Agency
48-15 under the Illinois Solid Waste Program; or
49-16 (2) located at the site of a coal mine that has
50-17 permanently ceased coal production, permanently halted any
51-18 re-mining operations, and is no longer accepting any coal
52-19 combustion residues; has both completed all clean-up and
53-20 remediation obligations under the federal Surface Mining
54-21 and Reclamation Act of 1977 and all applicable Illinois
55-22 rules and any other clean-up, remediation, or ongoing
56-23 monitoring to safeguard the health and well-being of the
57-24 people of the State of Illinois, as well as demonstrated
58-25 compliance with all applicable federal and State
59-26 environmental rules and regulations, including, but not
37+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1056 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
38+820 ILCS 130/2 820 ILCS 130/2
39+820 ILCS 130/2
40+Amends the Prevailing Wage Act. Provides that the definition of "public works" includes all fixed works constructed or demolished on publicly-owned property.
41+LRB104 03146 SPS 13167 b LRB104 03146 SPS 13167 b
42+ LRB104 03146 SPS 13167 b
43+A BILL FOR
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70-1 limited, to 35 Ill. Adm. Code Part 845 and any rules for
71-2 historic fill of coal combustion residuals, including any
72-3 rules finalized in Subdocket A of Illinois Pollution
73-4 Control Board docket R2020-019.
74-5 "Clean coal facility" means an electric generating
75-6 facility that uses primarily coal as a feedstock and that
76-7 captures and sequesters carbon dioxide emissions at the
77-8 following levels: at least 50% of the total carbon dioxide
78-9 emissions that the facility would otherwise emit if, at the
79-10 time construction commences, the facility is scheduled to
80-11 commence operation before 2016, at least 70% of the total
81-12 carbon dioxide emissions that the facility would otherwise
82-13 emit if, at the time construction commences, the facility is
83-14 scheduled to commence operation during 2016 or 2017, and at
84-15 least 90% of the total carbon dioxide emissions that the
85-16 facility would otherwise emit if, at the time construction
86-17 commences, the facility is scheduled to commence operation
87-18 after 2017. The power block of the clean coal facility shall
88-19 not exceed allowable emission rates for sulfur dioxide,
89-20 nitrogen oxides, carbon monoxide, particulates and mercury for
90-21 a natural gas-fired combined-cycle facility the same size as
91-22 and in the same location as the clean coal facility at the time
92-23 the clean coal facility obtains an approved air permit. All
93-24 coal used by a clean coal facility shall have high volatile
94-25 bituminous rank and greater than 1.7 pounds of sulfur per
95-26 million Btu content, unless the clean coal facility does not
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106-1 use gasification technology and was operating as a
107-2 conventional coal-fired electric generating facility on June
108-3 1, 2009 (the effective date of Public Act 95-1027).
109-4 "Clean coal SNG brownfield facility" means a facility that
110-5 (1) has commenced construction by July 1, 2015 on an urban
111-6 brownfield site in a municipality with at least 1,000,000
112-7 residents; (2) uses a gasification process to produce
113-8 substitute natural gas; (3) uses coal as at least 50% of the
114-9 total feedstock over the term of any sourcing agreement with a
115-10 utility and the remainder of the feedstock may be either
116-11 petroleum coke or coal, with all such coal having a high
117-12 bituminous rank and greater than 1.7 pounds of sulfur per
118-13 million Btu content unless the facility reasonably determines
119-14 that it is necessary to use additional petroleum coke to
120-15 deliver additional consumer savings, in which case the
121-16 facility shall use coal for at least 35% of the total feedstock
122-17 over the term of any sourcing agreement; and (4) captures and
123-18 sequesters at least 85% of the total carbon dioxide emissions
124-19 that the facility would otherwise emit.
125-20 "Clean coal SNG facility" means a facility that uses a
126-21 gasification process to produce substitute natural gas, that
127-22 sequesters at least 90% of the total carbon dioxide emissions
128-23 that the facility would otherwise emit, that uses at least 90%
129-24 coal as a feedstock, with all such coal having a high
130-25 bituminous rank and greater than 1.7 pounds of sulfur per
131-26 million Btu content, and that has a valid and effective permit
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68+1 Revenue Bond Act, the Illinois Finance Authority Act, the
69+2 Illinois Sports Facilities Authority Act, or the Build
70+3 Illinois Bond Act; loans or other funds made available
71+4 pursuant to the Build Illinois Act; loans or other funds made
72+5 available pursuant to the Riverfront Development Fund under
73+6 Section 10-15 of the River Edge Redevelopment Zone Act; or
74+7 funds from the Fund for Illinois' Future under Section 6z-47
75+8 of the State Finance Act, funds for school construction under
76+9 Section 5 of the General Obligation Bond Act, funds authorized
77+10 under Section 3 of the School Construction Bond Act, funds for
78+11 school infrastructure under Section 6z-45 of the State Finance
79+12 Act, and funds for transportation purposes under Section 4 of
80+13 the General Obligation Bond Act. "Public works" also includes
81+14 (i) all projects financed in whole or in part with funds from
82+15 the Environmental Protection Agency under the Illinois
83+16 Renewable Fuels Development Program Act for which there is no
84+17 project labor agreement; (ii) all work performed pursuant to a
85+18 public private agreement under the Public Private Agreements
86+19 for the Illiana Expressway Act or the Public-Private
87+20 Agreements for the South Suburban Airport Act; (iii) all
88+21 projects undertaken under a public-private agreement under the
89+22 Public-Private Partnerships for Transportation Act or the
90+23 Department of Natural Resources World Shooting and
91+24 Recreational Complex Act; and (iv) all transportation
92+25 facilities undertaken under a design-build contract or a
93+26 Construction Manager/General Contractor contract under the
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142-1 to construct emission sources and air pollution control
143-2 equipment and approval with respect to the federal regulations
144-3 for Prevention of Significant Deterioration of Air Quality
145-4 (PSD) for the plant pursuant to the federal Clean Air Act;
146-5 provided, however, a clean coal SNG brownfield facility shall
147-6 not be a clean coal SNG facility.
148-7 "Clean energy" means energy generation that is 90% or
149-8 greater free of carbon dioxide emissions.
150-9 "Commission" means the Illinois Commerce Commission.
151-10 "Community renewable generation project" means an electric
152-11 generating facility that:
153-12 (1) is powered by wind, solar thermal energy,
154-13 photovoltaic cells or panels, biodiesel, crops and
155-14 untreated and unadulterated organic waste biomass, and
156-15 hydropower that does not involve new construction of dams;
157-16 (2) is interconnected at the distribution system level
158-17 of an electric utility as defined in this Section, a
159-18 municipal utility as defined in this Section that owns or
160-19 operates electric distribution facilities, a public
161-20 utility as defined in Section 3-105 of the Public
162-21 Utilities Act, or an electric cooperative, as defined in
163-22 Section 3-119 of the Public Utilities Act;
164-23 (3) credits the value of electricity generated by the
165-24 facility to the subscribers of the facility; and
166-25 (4) is limited in nameplate capacity to less than or
167-26 equal to 5,000 kilowatts.
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104+1 Innovations for Transportation Infrastructure Act. "Public
105+2 works" also includes all projects at leased facility property
106+3 used for airport purposes under Section 35 of the Local
107+4 Government Facility Lease Act. "Public works" also includes
108+5 the construction of a new wind power facility by a business
109+6 designated as a High Impact Business under Section
110+7 5.5(a)(3)(E) and the construction of a new utility-scale solar
111+8 power facility by a business designated as a High Impact
112+9 Business under Section 5.5(a)(3)(E-5) of the Illinois
113+10 Enterprise Zone Act. "Public works" also includes electric
114+11 vehicle charging station projects financed pursuant to the
115+12 Electric Vehicle Act and renewable energy projects required to
116+13 pay the prevailing wage pursuant to the Illinois Power Agency
117+14 Act. "Public works" also includes power washing projects by a
118+15 public body or paid for wholly or in part out of public funds
119+16 in which steam or pressurized water, with or without added
120+17 abrasives or chemicals, is used to remove paint or other
121+18 coatings, oils or grease, corrosion, or debris from a surface
122+19 or to prepare a surface for a coating. "Public works" does not
123+20 include work done directly by any public utility company,
124+21 whether or not done under public supervision or direction, or
125+22 paid for wholly or in part out of public funds. "Public works"
126+23 also includes construction projects performed by a third party
127+24 contracted by any public utility, as described in subsection
128+25 (a) of Section 2.1, in public rights-of-way, as defined in
129+26 Section 21-201 of the Public Utilities Act, whether or not
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178-1 "Costs incurred in connection with the development and
179-2 construction of a facility" means:
180-3 (1) the cost of acquisition of all real property,
181-4 fixtures, and improvements in connection therewith and
182-5 equipment, personal property, and other property, rights,
183-6 and easements acquired that are deemed necessary for the
184-7 operation and maintenance of the facility;
185-8 (2) financing costs with respect to bonds, notes, and
186-9 other evidences of indebtedness of the Agency;
187-10 (3) all origination, commitment, utilization,
188-11 facility, placement, underwriting, syndication, credit
189-12 enhancement, and rating agency fees;
190-13 (4) engineering, design, procurement, consulting,
191-14 legal, accounting, title insurance, survey, appraisal,
192-15 escrow, trustee, collateral agency, interest rate hedging,
193-16 interest rate swap, capitalized interest, contingency, as
194-17 required by lenders, and other financing costs, and other
195-18 expenses for professional services; and
196-19 (5) the costs of plans, specifications, site study and
197-20 investigation, installation, surveys, other Agency costs
198-21 and estimates of costs, and other expenses necessary or
199-22 incidental to determining the feasibility of any project,
200-23 together with such other expenses as may be necessary or
201-24 incidental to the financing, insuring, acquisition, and
202-25 construction of a specific project and starting up,
203-26 commissioning, and placing that project in operation.
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140+1 done under public supervision or direction, or paid for wholly
141+2 or in part out of public funds. "Public works" also includes
142+3 construction projects that exceed 15 aggregate miles of new
143+4 fiber optic cable, performed by a third party contracted by
144+5 any public utility, as described in subsection (b) of Section
145+6 2.1, in public rights-of-way, as defined in Section 21-201 of
146+7 the Public Utilities Act, whether or not done under public
147+8 supervision or direction, or paid for wholly or in part out of
148+9 public funds. "Public works" also includes any corrective
149+10 action performed pursuant to Title XVI of the Environmental
150+11 Protection Act for which payment from the Underground Storage
151+12 Tank Fund is requested. "Public works" also includes all
152+13 construction projects involving fixtures or permanent
153+14 attachments affixed to light poles that are owned by a public
154+15 body, including street light poles, traffic light poles, and
155+16 other lighting fixtures, whether or not done under public
156+17 supervision or direction, or paid for wholly or in part out of
157+18 public funds, unless the project is performed by employees
158+19 employed directly by the public body. "Public works" also
159+20 includes work performed subject to the Mechanical Insulation
160+21 Energy and Safety Assessment Act. "Public works" also includes
161+22 the removal, hauling, and transportation of biosolids, lime
162+23 sludge, and lime residue from a water treatment plant or
163+24 facility and the disposal of biosolids, lime sludge, and lime
164+25 residue removed from a water treatment plant or facility at a
165+26 landfill. "Public works" does not include projects undertaken
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214-1 "Delivery services" has the same definition as found in
215-2 Section 16-102 of the Public Utilities Act.
216-3 "Delivery year" means the consecutive 12-month period
217-4 beginning June 1 of a given year and ending May 31 of the
218-5 following year.
219-6 "Department" means the Department of Commerce and Economic
220-7 Opportunity.
221-8 "Director" means the Director of the Illinois Power
222-9 Agency.
223-10 "Demand-response" means measures that decrease peak
224-11 electricity demand or shift demand from peak to off-peak
225-12 periods.
226-13 "Distributed renewable energy generation device" means a
227-14 device that is:
228-15 (1) powered by wind, solar thermal energy,
229-16 photovoltaic cells or panels, biodiesel, crops and
230-17 untreated and unadulterated organic waste biomass, tree
231-18 waste, and hydropower that does not involve new
232-19 construction of dams, waste heat to power systems, or
233-20 qualified combined heat and power systems;
234-21 (2) interconnected at the distribution system level of
235-22 either an electric utility as defined in this Section, a
236-23 municipal utility as defined in this Section that owns or
237-24 operates electric distribution facilities, or a rural
238-25 electric cooperative as defined in Section 3-119 of the
239-26 Public Utilities Act;
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176+1 by the owner at an owner-occupied single-family residence or
177+2 at an owner-occupied unit of a multi-family residence. "Public
178+3 works" does not include work performed for soil and water
179+4 conservation purposes on agricultural lands, whether or not
180+5 done under public supervision or paid for wholly or in part out
181+6 of public funds, done directly by an owner or person who has
182+7 legal control of those lands.
183+8 "Construction" means all work on public works involving
184+9 laborers, workers or mechanics. This includes any maintenance,
185+10 repair, assembly, or disassembly work performed on equipment
186+11 whether owned, leased, or rented.
187+12 "Locality" means the county where the physical work upon
188+13 public works is performed, except (1) that if there is not
189+14 available in the county a sufficient number of competent
190+15 skilled laborers, workers and mechanics to construct the
191+16 public works efficiently and properly, "locality" includes any
192+17 other county nearest the one in which the work or construction
193+18 is to be performed and from which such persons may be obtained
194+19 in sufficient numbers to perform the work and (2) that, with
195+20 respect to contracts for highway work with the Department of
196+21 Transportation of this State, "locality" may at the discretion
197+22 of the Secretary of the Department of Transportation be
198+23 construed to include two or more adjacent counties from which
199+24 workers may be accessible for work on such construction.
200+25 "Public body" means the State or any officer, board or
201+26 commission of the State or any political subdivision or
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250-1 (3) located on the customer side of the customer's
251-2 electric meter and is primarily used to offset that
252-3 customer's electricity load; and
253-4 (4) (blank).
254-5 "Energy efficiency" means measures that reduce the amount
255-6 of electricity or natural gas consumed in order to achieve a
256-7 given end use. "Energy efficiency" includes voltage
257-8 optimization measures that optimize the voltage at points on
258-9 the electric distribution voltage system and thereby reduce
259-10 electricity consumption by electric customers' end use
260-11 devices. "Energy efficiency" also includes measures that
261-12 reduce the total Btus of electricity, natural gas, and other
262-13 fuels needed to meet the end use or uses.
263-14 "Electric utility" has the same definition as found in
264-15 Section 16-102 of the Public Utilities Act.
265-16 "Equity investment eligible community" or "eligible
266-17 community" are synonymous and mean the geographic areas
267-18 throughout Illinois which would most benefit from equitable
268-19 investments by the State designed to combat discrimination.
269-20 Specifically, the eligible communities shall be defined as the
270-21 following areas:
271-22 (1) R3 Areas as established pursuant to Section 10-40
272-23 of the Cannabis Regulation and Tax Act, where residents
273-24 have historically been excluded from economic
274-25 opportunities, including opportunities in the energy
275-26 sector; and
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286-1 (2) environmental justice communities, as defined by
287-2 the Illinois Power Agency pursuant to the Illinois Power
288-3 Agency Act, where residents have historically been subject
289-4 to disproportionate burdens of pollution, including
290-5 pollution from the energy sector.
291-6 "Equity eligible persons" or "eligible persons" means
292-7 persons who would most benefit from equitable investments by
293-8 the State designed to combat discrimination, specifically:
294-9 (1) persons who graduate from or are current or former
295-10 participants in the Clean Jobs Workforce Network Program,
296-11 the Clean Energy Contractor Incubator Program, the
297-12 Illinois Climate Works Preapprenticeship Program,
298-13 Returning Residents Clean Jobs Training Program, or the
299-14 Clean Energy Primes Contractor Accelerator Program, and
300-15 the solar training pipeline and multi-cultural jobs
301-16 program created in paragraphs (a)(1) and (a)(3) of Section
302-17 16-208.12 of the Public Utilities Act;
303-18 (2) persons who are graduates of or currently enrolled
304-19 in the foster care system;
305-20 (3) persons who were formerly incarcerated;
306-21 (4) persons whose primary residence is in an equity
307-22 investment eligible community.
308-23 "Equity eligible contractor" means a business that is
309-24 majority-owned by eligible persons, or a nonprofit or
310-25 cooperative that is majority-governed by eligible persons, or
311-26 is a natural person that is an eligible person offering
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322-1 personal services as an independent contractor.
323-2 "Facility" means an electric generating unit or a
324-3 co-generating unit that produces electricity along with
325-4 related equipment necessary to connect the facility to an
326-5 electric transmission or distribution system.
327-6 "General contractor" means the entity or organization with
328-7 main responsibility for the building of a construction project
329-8 and who is the party signing the prime construction contract
330-9 for the project.
331-10 "Governmental aggregator" means one or more units of local
332-11 government that individually or collectively procure
333-12 electricity to serve residential retail electrical loads
334-13 located within its or their jurisdiction.
335-14 "High voltage direct current converter station" means the
336-15 collection of equipment that converts direct current energy
337-16 from a high voltage direct current transmission line into
338-17 alternating current using Voltage Source Conversion technology
339-18 and that is interconnected with transmission or distribution
340-19 assets located in Illinois.
341-20 "High voltage direct current renewable energy credit"
342-21 means a renewable energy credit associated with a renewable
343-22 energy resource where the renewable energy resource has
344-23 entered into a contract to transmit the energy associated with
345-24 such renewable energy credit over high voltage direct current
346-25 transmission facilities.
347-26 "High voltage direct current transmission facilities"
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358-1 means the collection of installed equipment that converts
359-2 alternating current energy in one location to direct current
360-3 and transmits that direct current energy to a high voltage
361-4 direct current converter station using Voltage Source
362-5 Conversion technology. "High voltage direct current
363-6 transmission facilities" includes the high voltage direct
364-7 current converter station itself and associated high voltage
365-8 direct current transmission lines. Notwithstanding the
366-9 preceding, after September 15, 2021 (the effective date of
367-10 Public Act 102-662), an otherwise qualifying collection of
368-11 equipment does not qualify as high voltage direct current
369-12 transmission facilities unless its developer entered into a
370-13 project labor agreement, is capable of transmitting
371-14 electricity at 525kv with an Illinois converter station
372-15 located and interconnected in the region of the PJM
373-16 Interconnection, LLC, and the system does not operate as a
374-17 public utility, as that term is defined in Section 3-105 of the
375-18 Public Utilities Act.
376-19 "Hydropower" means any method of electricity generation or
377-20 storage that results from the flow of water, including
378-21 impoundment facilities, diversion facilities, and pumped
379-22 storage facilities.
380-23 "Index price" means the real-time energy settlement price
381-24 at the applicable Illinois trading hub, such as PJM-NIHUB or
382-25 MISO-IL, for a given settlement period.
383-26 "Indexed renewable energy credit" means a tradable credit
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394-1 that represents the environmental attributes of one megawatt
395-2 hour of energy produced from a renewable energy resource, the
396-3 price of which shall be calculated by subtracting the strike
397-4 price offered by a new utility-scale wind project or a new
398-5 utility-scale photovoltaic project from the index price in a
399-6 given settlement period.
400-7 "Indexed renewable energy credit counterparty" has the
401-8 same meaning as "public utility" as defined in Section 3-105
402-9 of the Public Utilities Act.
403-10 "Local government" means a unit of local government as
404-11 defined in Section 1 of Article VII of the Illinois
405-12 Constitution.
406-13 "Modernized" or "retooled" means the construction, repair,
407-14 maintenance, or significant expansion of turbines and existing
408-15 hydropower dams.
409-16 "Municipality" means a city, village, or incorporated
410-17 town.
411-18 "Municipal utility" means a public utility owned and
412-19 operated by any subdivision or municipal corporation of this
413-20 State.
414-21 "Nameplate capacity" means the aggregate inverter
415-22 nameplate capacity in kilowatts AC.
416-23 "Person" means any natural person, firm, partnership,
417-24 corporation, either domestic or foreign, company, association,
418-25 limited liability company, joint stock company, or association
419-26 and includes any trustee, receiver, assignee, or personal
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430-1 representative thereof.
431-2 "Project" means the planning, bidding, and construction of
432-3 a facility.
433-4 "Project labor agreement" means a pre-hire collective
434-5 bargaining agreement that covers all terms and conditions of
435-6 employment on a specific construction project and must include
436-7 the following:
437-8 (1) provisions establishing the minimum hourly wage
438-9 for each class of labor organization employee;
439-10 (2) provisions establishing the benefits and other
440-11 compensation for each class of labor organization
441-12 employee;
442-13 (3) provisions establishing that no strike or disputes
443-14 will be engaged in by the labor organization employees;
444-15 (4) provisions establishing that no lockout or
445-16 disputes will be engaged in by the general contractor
446-17 building the project; and
447-18 (5) provisions for minorities and women, as defined
448-19 under the Business Enterprise for Minorities, Women, and
449-20 Persons with Disabilities Act, setting forth goals for
450-21 apprenticeship hours to be performed by minorities and
451-22 women and setting forth goals for total hours to be
452-23 performed by underrepresented minorities and women.
453-24 A labor organization and the general contractor building
454-25 the project shall have the authority to include other terms
455-26 and conditions as they deem necessary.
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466-1 "Public utility" has the same definition as found in
467-2 Section 3-105 of the Public Utilities Act.
468-3 "Qualified combined heat and power systems" means systems
469-4 that, either simultaneously or sequentially, produce
470-5 electricity and useful thermal energy from a single fuel
471-6 source. Such systems are eligible for "renewable energy
472-7 credits" in an amount equal to its total energy output where a
473-8 renewable fuel is consumed or in an amount equal to the net
474-9 reduction in nonrenewable fuel consumed on a total energy
475-10 output basis.
476-11 "Real property" means any interest in land together with
477-12 all structures, fixtures, and improvements thereon, including
478-13 lands under water and riparian rights, any easements,
479-14 covenants, licenses, leases, rights-of-way, uses, and other
480-15 interests, together with any liens, judgments, mortgages, or
481-16 other claims or security interests related to real property.
482-17 "Renewable energy credit" means a tradable credit that
483-18 represents the environmental attributes of one megawatt hour
484-19 of energy produced from a renewable energy resource.
485-20 "Renewable energy resources" includes energy and its
486-21 associated renewable energy credit or renewable energy credits
487-22 from wind, solar thermal energy, photovoltaic cells and
488-23 panels, biodiesel, anaerobic digestion, crops and untreated
489-24 and unadulterated organic waste biomass, and hydropower that
490-25 does not involve new construction of dams, waste heat to power
491-26 systems, or qualified combined heat and power systems. For
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502-1 purposes of this Act, landfill gas produced in the State is
503-2 considered a renewable energy resource. "Renewable energy
504-3 resources" does not include the incineration or burning of
505-4 tires, garbage, general household, institutional, and
506-5 commercial waste, industrial lunchroom or office waste,
507-6 landscape waste, railroad crossties, utility poles, or
508-7 construction or demolition debris, other than untreated and
509-8 unadulterated waste wood. "Renewable energy resources" also
510-9 includes high voltage direct current renewable energy credits
511-10 and the associated energy converted to alternating current by
512-11 a high voltage direct current converter station to the extent
513-12 that: (1) the generator of such renewable energy resource
514-13 contracted with a third party to transmit the energy over the
515-14 high voltage direct current transmission facilities, and (2)
516-15 the third-party contracting for delivery of renewable energy
517-16 resources over the high voltage direct current transmission
518-17 facilities have ownership rights over the unretired associated
519-18 high voltage direct current renewable energy credit.
520-19 "Retail customer" has the same definition as found in
521-20 Section 16-102 of the Public Utilities Act.
522-21 "Revenue bond" means any bond, note, or other evidence of
523-22 indebtedness issued by the Authority, the principal and
524-23 interest of which is payable solely from revenues or income
525-24 derived from any project or activity of the Agency.
526-25 "Sequester" means permanent storage of carbon dioxide by
527-26 injecting it into a saline aquifer, a depleted gas reservoir,
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538-1 or an oil reservoir, directly or through an enhanced oil
539-2 recovery process that may involve intermediate storage,
540-3 regardless of whether these activities are conducted by a
541-4 clean coal facility, a clean coal SNG facility, a clean coal
542-5 SNG brownfield facility, or a party with which a clean coal
543-6 facility, clean coal SNG facility, or clean coal SNG
544-7 brownfield facility has contracted for such purposes.
545-8 "Service area" has the same definition as found in Section
546-9 16-102 of the Public Utilities Act.
547-10 "Settlement period" means the period of time utilized by
548-11 MISO and PJM and their successor organizations as the basis
549-12 for settlement calculations in the real-time energy market.
550-13 "Sourcing agreement" means (i) in the case of an electric
551-14 utility, an agreement between the owner of a clean coal
552-15 facility and such electric utility, which agreement shall have
553-16 terms and conditions meeting the requirements of paragraph (3)
554-17 of subsection (d) of Section 1-75, (ii) in the case of an
555-18 alternative retail electric supplier, an agreement between the
556-19 owner of a clean coal facility and such alternative retail
557-20 electric supplier, which agreement shall have terms and
558-21 conditions meeting the requirements of Section 16-115(d)(5) of
559-22 the Public Utilities Act, and (iii) in case of a gas utility,
560-23 an agreement between the owner of a clean coal SNG brownfield
561-24 facility and the gas utility, which agreement shall have the
562-25 terms and conditions meeting the requirements of subsection
563-26 (h-1) of Section 9-220 of the Public Utilities Act.
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574-1 "Strike price" means a contract price for energy and
575-2 renewable energy credits from a new utility-scale wind project
576-3 or a new utility-scale photovoltaic project.
577-4 "Subscriber" means a person who (i) takes delivery service
578-5 from an electric utility, and (ii) has a subscription of no
579-6 less than 200 watts to a community renewable generation
580-7 project that is located in the electric utility's service
581-8 area. No subscriber's subscriptions may total more than 40% of
582-9 the nameplate capacity of an individual community renewable
583-10 generation project. Entities that are affiliated by virtue of
584-11 a common parent shall not represent multiple subscriptions
585-12 that total more than 40% of the nameplate capacity of an
586-13 individual community renewable generation project.
587-14 "Subscription" means an interest in a community renewable
588-15 generation project expressed in kilowatts, which is sized
589-16 primarily to offset part or all of the subscriber's
590-17 electricity usage.
591-18 "Substitute natural gas" or "SNG" means a gas manufactured
592-19 by gasification of hydrocarbon feedstock, which is
593-20 substantially interchangeable in use and distribution with
594-21 conventional natural gas.
595-22 "Total resource cost test" or "TRC test" means a standard
596-23 that is met if, for an investment in energy efficiency or
597-24 demand-response measures, the benefit-cost ratio is greater
598-25 than one. The benefit-cost ratio is the ratio of the net
599-26 present value of the total benefits of the program to the net
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610-1 present value of the total costs as calculated over the
611-2 lifetime of the measures. A total resource cost test compares
612-3 the sum of avoided electric utility costs, representing the
613-4 benefits that accrue to the system and the participant in the
614-5 delivery of those efficiency measures and including avoided
615-6 costs associated with reduced use of natural gas or other
616-7 fuels, avoided costs associated with reduced water
617-8 consumption, and avoided costs associated with reduced
618-9 operation and maintenance costs, as well as other quantifiable
619-10 societal benefits, to the sum of all incremental costs of
620-11 end-use measures that are implemented due to the program
621-12 (including both utility and participant contributions), plus
622-13 costs to administer, deliver, and evaluate each demand-side
623-14 program, to quantify the net savings obtained by substituting
624-15 the demand-side program for supply resources. In calculating
625-16 avoided costs of power and energy that an electric utility
626-17 would otherwise have had to acquire, reasonable estimates
627-18 shall be included of financial costs likely to be imposed by
628-19 future regulations and legislation on emissions of greenhouse
629-20 gases. In discounting future societal costs and benefits for
630-21 the purpose of calculating net present values, a societal
631-22 discount rate based on actual, long-term Treasury bond yields
632-23 should be used. Notwithstanding anything to the contrary, the
633-24 TRC test shall not include or take into account a calculation
634-25 of market price suppression effects or demand reduction
635-26 induced price effects.
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646-1 "Utility-scale solar project" means an electric generating
647-2 facility that:
648-3 (1) generates electricity using photovoltaic cells;
649-4 and
650-5 (2) has a nameplate capacity that is greater than
651-6 5,000 kilowatts, as measured by the aggregate capacity of
652-7 systems that are (i) installed on the same or adjacent
653-8 parcels or (ii) constructed on contiguous parcels of land
654-9 or on separate parcels that are functionally adjacent,
655-10 including those separated only by intervening land uses,
656-11 such as roads, rights-of-way, agricultural fields, or
657-12 similar non-developmental uses, and that are developed by
658-13 affiliated entities, as described in subitem (3) of item
659-14 (iii) of subparagraph (K) of paragraph (1) of subsection
660-15 (c) of Section 1-75.
661-16 "Utility-scale wind project" means an electric generating
662-17 facility that:
663-18 (1) generates electricity using wind; and
664-19 (2) has a nameplate capacity that is greater than
665-20 5,000 kilowatts.
666-21 "Waste Heat to Power Systems" means systems that capture
667-22 and generate electricity from energy that would otherwise be
668-23 lost to the atmosphere without the use of additional fuel.
669-24 "Zero emission credit" means a tradable credit that
670-25 represents the environmental attributes of one megawatt hour
671-26 of energy produced from a zero emission facility.
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682-1 "Zero emission facility" means a facility that: (1) is
683-2 fueled by nuclear power; and (2) is interconnected with PJM
684-3 Interconnection, LLC or the Midcontinent Independent System
685-4 Operator, Inc., or their successors.
686-5 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
687-6 103-380, eff. 1-1-24.)
688-7 (20 ILCS 3855/1-75)
689-8 Sec. 1-75. Planning and Procurement Bureau. The Planning
690-9 and Procurement Bureau has the following duties and
691-10 responsibilities:
692-11 (a) The Planning and Procurement Bureau shall each year,
693-12 beginning in 2008, develop procurement plans and conduct
694-13 competitive procurement processes in accordance with the
695-14 requirements of Section 16-111.5 of the Public Utilities Act
696-15 for the eligible retail customers of electric utilities that
697-16 on December 31, 2005 provided electric service to at least
698-17 100,000 customers in Illinois. Beginning with the delivery
699-18 year commencing on June 1, 2017, the Planning and Procurement
700-19 Bureau shall develop plans and processes for the procurement
701-20 of zero emission credits from zero emission facilities in
702-21 accordance with the requirements of subsection (d-5) of this
703-22 Section. Beginning on the effective date of this amendatory
704-23 Act of the 102nd General Assembly, the Planning and
705-24 Procurement Bureau shall develop plans and processes for the
706-25 procurement of carbon mitigation credits from carbon-free
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717-1 energy resources in accordance with the requirements of
718-2 subsection (d-10) of this Section. The Planning and
719-3 Procurement Bureau shall also develop procurement plans and
720-4 conduct competitive procurement processes in accordance with
721-5 the requirements of Section 16-111.5 of the Public Utilities
722-6 Act for the eligible retail customers of small
723-7 multi-jurisdictional electric utilities that (i) on December
724-8 31, 2005 served less than 100,000 customers in Illinois and
725-9 (ii) request a procurement plan for their Illinois
726-10 jurisdictional load. This Section shall not apply to a small
727-11 multi-jurisdictional utility until such time as a small
728-12 multi-jurisdictional utility requests the Agency to prepare a
729-13 procurement plan for their Illinois jurisdictional load. For
730-14 the purposes of this Section, the term "eligible retail
731-15 customers" has the same definition as found in Section
732-16 16-111.5(a) of the Public Utilities Act.
733-17 Beginning with the plan or plans to be implemented in the
734-18 2017 delivery year, the Agency shall no longer include the
735-19 procurement of renewable energy resources in the annual
736-20 procurement plans required by this subsection (a), except as
737-21 provided in subsection (q) of Section 16-111.5 of the Public
738-22 Utilities Act, and shall instead develop a long-term renewable
739-23 resources procurement plan in accordance with subsection (c)
740-24 of this Section and Section 16-111.5 of the Public Utilities
741-25 Act.
742-26 In accordance with subsection (c-5) of this Section, the
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753-1 Planning and Procurement Bureau shall oversee the procurement
754-2 by electric utilities that served more than 300,000 retail
755-3 customers in this State as of January 1, 2019 of renewable
756-4 energy credits from new utility-scale solar projects to be
757-5 installed, along with energy storage facilities, at or
758-6 adjacent to the sites of electric generating facilities that,
759-7 as of January 1, 2016, burned coal as their primary fuel
760-8 source.
761-9 (1) The Agency shall each year, beginning in 2008, as
762-10 needed, issue a request for qualifications for experts or
763-11 expert consulting firms to develop the procurement plans
764-12 in accordance with Section 16-111.5 of the Public
765-13 Utilities Act. In order to qualify an expert or expert
766-14 consulting firm must have:
767-15 (A) direct previous experience assembling
768-16 large-scale power supply plans or portfolios for
769-17 end-use customers;
770-18 (B) an advanced degree in economics, mathematics,
771-19 engineering, risk management, or a related area of
772-20 study;
773-21 (C) 10 years of experience in the electricity
774-22 sector, including managing supply risk;
775-23 (D) expertise in wholesale electricity market
776-24 rules, including those established by the Federal
777-25 Energy Regulatory Commission and regional transmission
778-26 organizations;
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789-1 (E) expertise in credit protocols and familiarity
790-2 with contract protocols;
791-3 (F) adequate resources to perform and fulfill the
792-4 required functions and responsibilities; and
793-5 (G) the absence of a conflict of interest and
794-6 inappropriate bias for or against potential bidders or
795-7 the affected electric utilities.
796-8 (2) The Agency shall each year, as needed, issue a
797-9 request for qualifications for a procurement administrator
798-10 to conduct the competitive procurement processes in
799-11 accordance with Section 16-111.5 of the Public Utilities
800-12 Act. In order to qualify an expert or expert consulting
801-13 firm must have:
802-14 (A) direct previous experience administering a
803-15 large-scale competitive procurement process;
804-16 (B) an advanced degree in economics, mathematics,
805-17 engineering, or a related area of study;
806-18 (C) 10 years of experience in the electricity
807-19 sector, including risk management experience;
808-20 (D) expertise in wholesale electricity market
809-21 rules, including those established by the Federal
810-22 Energy Regulatory Commission and regional transmission
811-23 organizations;
812-24 (E) expertise in credit and contract protocols;
813-25 (F) adequate resources to perform and fulfill the
814-26 required functions and responsibilities; and
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825-1 (G) the absence of a conflict of interest and
826-2 inappropriate bias for or against potential bidders or
827-3 the affected electric utilities.
828-4 (3) The Agency shall provide affected utilities and
829-5 other interested parties with the lists of qualified
830-6 experts or expert consulting firms identified through the
831-7 request for qualifications processes that are under
832-8 consideration to develop the procurement plans and to
833-9 serve as the procurement administrator. The Agency shall
834-10 also provide each qualified expert's or expert consulting
835-11 firm's response to the request for qualifications. All
836-12 information provided under this subparagraph shall also be
837-13 provided to the Commission. The Agency may provide by rule
838-14 for fees associated with supplying the information to
839-15 utilities and other interested parties. These parties
840-16 shall, within 5 business days, notify the Agency in
841-17 writing if they object to any experts or expert consulting
842-18 firms on the lists. Objections shall be based on:
843-19 (A) failure to satisfy qualification criteria;
844-20 (B) identification of a conflict of interest; or
845-21 (C) evidence of inappropriate bias for or against
846-22 potential bidders or the affected utilities.
847-23 The Agency shall remove experts or expert consulting
848-24 firms from the lists within 10 days if there is a
849-25 reasonable basis for an objection and provide the updated
850-26 lists to the affected utilities and other interested
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861-1 parties. If the Agency fails to remove an expert or expert
862-2 consulting firm from a list, an objecting party may seek
863-3 review by the Commission within 5 days thereafter by
864-4 filing a petition, and the Commission shall render a
865-5 ruling on the petition within 10 days. There is no right of
866-6 appeal of the Commission's ruling.
867-7 (4) The Agency shall issue requests for proposals to
868-8 the qualified experts or expert consulting firms to
869-9 develop a procurement plan for the affected utilities and
870-10 to serve as procurement administrator.
871-11 (5) The Agency shall select an expert or expert
872-12 consulting firm to develop procurement plans based on the
873-13 proposals submitted and shall award contracts of up to 5
874-14 years to those selected.
875-15 (6) The Agency shall select an expert or expert
876-16 consulting firm, with approval of the Commission, to serve
877-17 as procurement administrator based on the proposals
878-18 submitted. If the Commission rejects, within 5 days, the
879-19 Agency's selection, the Agency shall submit another
880-20 recommendation within 3 days based on the proposals
881-21 submitted. The Agency shall award a 5-year contract to the
882-22 expert or expert consulting firm so selected with
883-23 Commission approval.
884-24 (b) The experts or expert consulting firms retained by the
885-25 Agency shall, as appropriate, prepare procurement plans, and
886-26 conduct a competitive procurement process as prescribed in
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897-1 Section 16-111.5 of the Public Utilities Act, to ensure
898-2 adequate, reliable, affordable, efficient, and environmentally
899-3 sustainable electric service at the lowest total cost over
900-4 time, taking into account any benefits of price stability, for
901-5 eligible retail customers of electric utilities that on
902-6 December 31, 2005 provided electric service to at least
903-7 100,000 customers in the State of Illinois, and for eligible
904-8 Illinois retail customers of small multi-jurisdictional
905-9 electric utilities that (i) on December 31, 2005 served less
906-10 than 100,000 customers in Illinois and (ii) request a
907-11 procurement plan for their Illinois jurisdictional load.
908-12 (c) Renewable portfolio standard.
909-13 (1)(A) The Agency shall develop a long-term renewable
910-14 resources procurement plan that shall include procurement
911-15 programs and competitive procurement events necessary to
912-16 meet the goals set forth in this subsection (c). The
913-17 initial long-term renewable resources procurement plan
914-18 shall be released for comment no later than 160 days after
915-19 June 1, 2017 (the effective date of Public Act 99-906).
916-20 The Agency shall review, and may revise on an expedited
917-21 basis, the long-term renewable resources procurement plan
918-22 at least every 2 years, which shall be conducted in
919-23 conjunction with the procurement plan under Section
920-24 16-111.5 of the Public Utilities Act to the extent
921-25 practicable to minimize administrative expense. No later
922-26 than 120 days after the effective date of this amendatory
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933-1 Act of the 103rd General Assembly, the Agency shall
934-2 release for comment a revision to the long-term renewable
935-3 resources procurement plan, updating elements of the most
936-4 recently approved plan as needed to comply with this
937-5 amendatory Act of the 103rd General Assembly, and any
938-6 long-term renewable resources procurement plan update
939-7 published by the Agency but not yet approved by the
940-8 Illinois Commerce Commission shall be withdrawn. The
941-9 long-term renewable resources procurement plans shall be
942-10 subject to review and approval by the Commission under
943-11 Section 16-111.5 of the Public Utilities Act.
944-12 (B) Subject to subparagraph (F) of this paragraph (1),
945-13 the long-term renewable resources procurement plan shall
946-14 attempt to meet the goals for procurement of renewable
947-15 energy credits at levels of at least the following overall
948-16 percentages: 13% by the 2017 delivery year; increasing by
949-17 at least 1.5% each delivery year thereafter to at least
950-18 25% by the 2025 delivery year; increasing by at least 3%
951-19 each delivery year thereafter to at least 40% by the 2030
952-20 delivery year, and continuing at no less than 40% for each
953-21 delivery year thereafter. The Agency shall attempt to
954-22 procure 50% by delivery year 2040. The Agency shall
955-23 determine the annual increase between delivery year 2030
956-24 and delivery year 2040, if any, taking into account energy
957-25 demand, other energy resources, and other public policy
958-26 goals. In the event of a conflict between these goals and
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969-1 the new wind, new photovoltaic, and hydropower procurement
970-2 requirements described in items (i) through (iii) of
971-3 subparagraph (C) of this paragraph (1), the long-term plan
972-4 shall prioritize compliance with the new wind, new
973-5 photovoltaic, and hydropower procurement requirements
974-6 described in items (i) through (iii) of subparagraph (C)
975-7 of this paragraph (1) over the annual percentage targets
976-8 described in this subparagraph (B). The Agency shall not
977-9 comply with the annual percentage targets described in
978-10 this subparagraph (B) by procuring renewable energy
979-11 credits that are unlikely to lead to the development of
980-12 new renewable resources or new, modernized, or retooled
981-13 hydropower facilities.
982-14 For the delivery year beginning June 1, 2017, the
983-15 procurement plan shall attempt to include, subject to the
984-16 prioritization outlined in this subparagraph (B),
985-17 cost-effective renewable energy resources equal to at
986-18 least 13% of each utility's load for eligible retail
987-19 customers and 13% of the applicable portion of each
988-20 utility's load for retail customers who are not eligible
989-21 retail customers, which applicable portion shall equal 50%
990-22 of the utility's load for retail customers who are not
991-23 eligible retail customers on February 28, 2017.
992-24 For the delivery year beginning June 1, 2018, the
993-25 procurement plan shall attempt to include, subject to the
994-26 prioritization outlined in this subparagraph (B),
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1005-1 cost-effective renewable energy resources equal to at
1006-2 least 14.5% of each utility's load for eligible retail
1007-3 customers and 14.5% of the applicable portion of each
1008-4 utility's load for retail customers who are not eligible
1009-5 retail customers, which applicable portion shall equal 75%
1010-6 of the utility's load for retail customers who are not
1011-7 eligible retail customers on February 28, 2017.
1012-8 For the delivery year beginning June 1, 2019, and for
1013-9 each year thereafter, the procurement plans shall attempt
1014-10 to include, subject to the prioritization outlined in this
1015-11 subparagraph (B), cost-effective renewable energy
1016-12 resources equal to a minimum percentage of each utility's
1017-13 load for all retail customers as follows: 16% by June 1,
1018-14 2019; increasing by 1.5% each year thereafter to 25% by
1019-15 June 1, 2025; and 25% by June 1, 2026; increasing by at
1020-16 least 3% each delivery year thereafter to at least 40% by
1021-17 the 2030 delivery year, and continuing at no less than 40%
1022-18 for each delivery year thereafter. The Agency shall
1023-19 attempt to procure 50% by delivery year 2040. The Agency
1024-20 shall determine the annual increase between delivery year
1025-21 2030 and delivery year 2040, if any, taking into account
1026-22 energy demand, other energy resources, and other public
1027-23 policy goals.
1028-24 For each delivery year, the Agency shall first
1029-25 recognize each utility's obligations for that delivery
1030-26 year under existing contracts. Any renewable energy
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1041-1 credits under existing contracts, including renewable
1042-2 energy credits as part of renewable energy resources,
1043-3 shall be used to meet the goals set forth in this
1044-4 subsection (c) for the delivery year.
1045-5 (C) The long-term renewable resources procurement plan
1046-6 described in subparagraph (A) of this paragraph (1) shall
1047-7 include the procurement of renewable energy credits from
1048-8 new projects pursuant to the following terms:
1049-9 (i) At least 10,000,000 renewable energy credits
1050-10 delivered annually by the end of the 2021 delivery
1051-11 year, and increasing ratably to reach 45,000,000
1052-12 renewable energy credits delivered annually from new
1053-13 wind and solar projects, from repowered wind projects,
1054-14 or from retooled hydropower facilities by the end of
1055-15 delivery year 2030 such that the goals in subparagraph
1056-16 (B) of this paragraph (1) are met entirely by
1057-17 procurements of renewable energy credits from new wind
1058-18 and photovoltaic projects. Of that amount, to the
1059-19 extent possible, the Agency shall endeavor to procure
1060-20 45% from new and repowered wind and hydropower
1061-21 projects and shall procure at least 55% from
1062-22 photovoltaic projects. Of the amount to be procured
1063-23 from photovoltaic projects, the Agency shall procure:
1064-24 at least 50% from solar photovoltaic projects using
1065-25 the program outlined in subparagraph (K) of this
1066-26 paragraph (1) from distributed renewable energy
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1077-1 generation devices or community renewable generation
1078-2 projects; at least 47% from utility-scale solar
1079-3 projects; at least 3% from brownfield site
1080-4 photovoltaic projects that are not community renewable
1081-5 generation projects. The Agency may propose
1082-6 adjustments to these percentages, including
1083-7 establishing percentage-based goals for the
1084-8 procurement of renewable energy credits from
1085-9 modernized or retooled hydropower facilities and
1086-10 repowered wind projects, through its long-term
1087-11 renewable resources plan described in subparagraph (A)
1088-12 of this paragraph (1) as necessary based on developer
1089-13 interest, market conditions, budget considerations,
1090-14 resource adequacy needs, or other factors.
1091-15 In developing the long-term renewable resources
1092-16 procurement plan, the Agency shall consider other
1093-17 approaches, in addition to competitive procurements,
1094-18 that can be used to procure renewable energy credits
1095-19 from brownfield site photovoltaic projects and thereby
1096-20 help return blighted or contaminated land to
1097-21 productive use while enhancing public health and the
1098-22 well-being of Illinois residents, including those in
1099-23 environmental justice communities, as defined using
1100-24 existing methodologies and findings used by the Agency
1101-25 and its Administrator in its Illinois Solar for All
1102-26 Program. The Agency shall also consider other
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1113-1 approaches, in addition to competitive procurements,
1114-2 to procure renewable energy credits from new and
1115-3 existing hydropower facilities to support the
1116-4 development and maintenance of these facilities. The
1117-5 Agency shall explore options to convert existing dams
1118-6 but shall not consider approaches to develop new dams
1119-7 where they do not already exist. To encourage the
1120-8 continued operation of utility-scale wind projects,
1121-9 the Agency shall consider and may propose other
1122-10 approaches in addition to competitive procurements to
1123-11 procure renewable energy credits from repowered wind
1124-12 projects.
1125-13 (ii) In any given delivery year, if forecasted
1126-14 expenses are less than the maximum budget available
1127-15 under subparagraph (E) of this paragraph (1), the
1128-16 Agency shall continue to procure new renewable energy
1129-17 credits until that budget is exhausted in the manner
1130-18 outlined in item (i) of this subparagraph (C).
1131-19 (iii) For purposes of this Section:
1132-20 "New wind projects" means wind renewable energy
1133-21 facilities that are energized after June 1, 2017 for
1134-22 the delivery year commencing June 1, 2017.
1135-23 "New photovoltaic projects" means photovoltaic
1136-24 renewable energy facilities that are energized after
1137-25 June 1, 2017. Photovoltaic projects developed under
1138-26 Section 1-56 of this Act shall not apply towards the
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1149-1 new photovoltaic project requirements in this
1150-2 subparagraph (C).
1151-3 "Repowered wind projects" means utility-scale wind
1152-4 projects featuring the removal, replacement, or
1153-5 expansion of turbines at an existing project site, as
1154-6 defined in the long-term renewable resources
1155-7 procurement plan, after the effective date of this
1156-8 amendatory Act of the 103rd General Assembly.
1157-9 Renewable energy credit contract awards used to
1158-10 support repowered wind projects shall only cover the
1159-11 incremental increase in facility electricity
1160-12 production resultant from repowering.
1161-13 For purposes of calculating whether the Agency has
1162-14 procured enough new wind and solar renewable energy
1163-15 credits required by this subparagraph (C), renewable
1164-16 energy facilities that have a multi-year renewable
1165-17 energy credit delivery contract with the utility
1166-18 through at least delivery year 2030 shall be
1167-19 considered new, however no renewable energy credits
1168-20 from contracts entered into before June 1, 2021 shall
1169-21 be used to calculate whether the Agency has procured
1170-22 the correct proportion of new wind and new solar
1171-23 contracts described in this subparagraph (C) for
1172-24 delivery year 2021 and thereafter.
1173-25 (D) Renewable energy credits shall be cost effective.
1174-26 For purposes of this subsection (c), "cost effective"
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1185-1 means that the costs of procuring renewable energy
1186-2 resources do not cause the limit stated in subparagraph
1187-3 (E) of this paragraph (1) to be exceeded and, for
1188-4 renewable energy credits procured through a competitive
1189-5 procurement event, do not exceed benchmarks based on
1190-6 market prices for like products in the region. For
1191-7 purposes of this subsection (c), "like products" means
1192-8 contracts for renewable energy credits from the same or
1193-9 substantially similar technology, same or substantially
1194-10 similar vintage (new or existing), the same or
1195-11 substantially similar quantity, and the same or
1196-12 substantially similar contract length and structure.
1197-13 Benchmarks shall reflect development, financing, or
1198-14 related costs resulting from requirements imposed through
1199-15 other provisions of State law, including, but not limited
1200-16 to, requirements in subparagraphs (P) and (Q) of this
1201-17 paragraph (1) and the Renewable Energy Facilities
1202-18 Agricultural Impact Mitigation Act. Confidential
1203-19 benchmarks shall be developed by the procurement
1204-20 administrator, in consultation with the Commission staff,
1205-21 Agency staff, and the procurement monitor and shall be
1206-22 subject to Commission review and approval. If price
1207-23 benchmarks for like products in the region are not
1208-24 available, the procurement administrator shall establish
1209-25 price benchmarks based on publicly available data on
1210-26 regional technology costs and expected current and future
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1221-1 regional energy prices. The benchmarks in this Section
1222-2 shall not be used to curtail or otherwise reduce
1223-3 contractual obligations entered into by or through the
1224-4 Agency prior to June 1, 2017 (the effective date of Public
1225-5 Act 99-906).
1226-6 (E) For purposes of this subsection (c), the required
1227-7 procurement of cost-effective renewable energy resources
1228-8 for a particular year commencing prior to June 1, 2017
1229-9 shall be measured as a percentage of the actual amount of
1230-10 electricity (megawatt-hours) supplied by the electric
1231-11 utility to eligible retail customers in the delivery year
1232-12 ending immediately prior to the procurement, and, for
1233-13 delivery years commencing on and after June 1, 2017, the
1234-14 required procurement of cost-effective renewable energy
1235-15 resources for a particular year shall be measured as a
1236-16 percentage of the actual amount of electricity
1237-17 (megawatt-hours) delivered by the electric utility in the
1238-18 delivery year ending immediately prior to the procurement,
1239-19 to all retail customers in its service territory. For
1240-20 purposes of this subsection (c), the amount paid per
1241-21 kilowatthour means the total amount paid for electric
1242-22 service expressed on a per kilowatthour basis. For
1243-23 purposes of this subsection (c), the total amount paid for
1244-24 electric service includes without limitation amounts paid
1245-25 for supply, transmission, capacity, distribution,
1246-26 surcharges, and add-on taxes.
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1257-1 Notwithstanding the requirements of this subsection
1258-2 (c), and except as provided in subparagraph (E-5) of
1259-3 paragraph (1) of this subsection (c), the total of
1260-4 renewable energy resources procured under the procurement
1261-5 plan for any single year shall be subject to the
1262-6 limitations of this subparagraph (E). Such procurement
1263-7 shall be reduced for all retail customers based on the
1264-8 amount necessary to limit the annual estimated average net
1265-9 increase due to the costs of these resources included in
1266-10 the amounts paid by eligible retail customers in
1267-11 connection with electric service to no more than 4.25% of
1268-12 the amount paid per kilowatthour by those customers during
1269-13 the year ending May 31, 2009. To arrive at a maximum dollar
1270-14 amount of renewable energy resources to be procured for
1271-15 the particular delivery year, the resulting per
1272-16 kilowatthour amount shall be applied to the actual amount
1273-17 of kilowatthours of electricity delivered, or applicable
1274-18 portion of such amount as specified in paragraph (1) of
1275-19 this subsection (c), as applicable, by the electric
1276-20 utility in the delivery year immediately prior to the
1277-21 procurement to all retail customers in its service
1278-22 territory. The calculations required by this subparagraph
1279-23 (E) shall be made only once for each delivery year at the
1280-24 time that the renewable energy resources are procured.
1281-25 Once the determination as to the amount of renewable
1282-26 energy resources to procure is made based on the
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1293-1 calculations set forth in this subparagraph (E) and the
1294-2 contracts procuring those amounts are executed between the
1295-3 seller and applicable electric utility, no subsequent rate
1296-4 impact determinations shall be made and no adjustments to
1297-5 those contract amounts shall be allowed. As provided in
1298-6 subparagraph (E-5) of paragraph (1) of this subsection
1299-7 (c), the seller shall be entitled to full, prompt, and
1300-8 uninterrupted payment under the applicable contract
1301-9 notwithstanding the application of this subparagraph (E),
1302-10 and all costs incurred under such contracts shall be fully
1303-11 recoverable by the electric utility as provided in this
1304-12 Section.
1305-13 (E-5) If, for a particular delivery year, the
1306-14 limitation on the amount of renewable energy resources to
1307-15 be procured, as calculated pursuant to subparagraph (E) of
1308-16 paragraph (1) of this subsection (c), would result in an
1309-17 insufficient collection of funds to fully pay amounts due
1310-18 to a seller under existing contracts executed under this
1311-19 Section or executed under Section 1-56 of this Act, then
1312-20 the following provisions shall apply to ensure full and
1313-21 uninterrupted payment is made to such seller or sellers:
1314-22 (i) If the electric utility has retained unspent
1315-23 funds in an interest-bearing account as prescribed in
1316-24 subsection (k) of Section 16-108 of the Public
1317-25 Utilities Act, then the utility shall use those funds
1318-26 to remit full payment to the sellers to ensure prompt
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1329-1 and uninterrupted payment of existing contractual
1330-2 obligation.
1331-3 (ii) If the funds described in item (i) of this
1332-4 subparagraph (E-5) are insufficient to satisfy all
1333-5 existing contractual obligations, then the electric
1334-6 utility shall, nonetheless, remit full payment to the
1335-7 sellers to ensure prompt and uninterrupted payment of
1336-8 existing contractual obligations, provided that the
1337-9 full costs shall be recoverable by the utility in
1338-10 accordance with part (ee) of item (iv) of this
1339-11 subsection (E-5).
1340-12 (iii) The Agency shall promptly notify the
1341-13 Commission that existing contractual obligations are
1342-14 reasonably expected to exceed the maximum collection
1343-15 authorized under subparagraph (E) of paragraph (1) of
1344-16 this subsection (c) for the applicable delivery year.
1345-17 The Agency shall also explain and confirm how the
1346-18 operation of items (i) and (ii) of this subparagraph
1347-19 (E-5) ensures that the electric utility will continue
1348-20 to make prompt and uninterrupted payment under
1349-21 existing contractual obligations. The Agency shall
1350-22 provide this information to the Commission through a
1351-23 notice filed in the Commission docket approving the
1352-24 Agency's operative Long-Term Renewable Resources
1353-25 Procurement Plan that includes the applicable delivery
1354-26 year.
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1365-1 (iv) The Agency shall suspend or reduce new
1366-2 contract awards for the procurement of renewable
1367-3 energy credits until an Agency determination is made
1368-4 under subparagraph (E) that additional procurements
1369-5 would not cause the rate impact limitation of
1370-6 subparagraph (E) to be exceeded. At least once
1371-7 annually after the notice provided for in item (iii)
1372-8 of this subparagraph (E-5) is made, the Agency shall
1373-9 analyze existing contract obligations, projected
1374-10 prices for indexed renewable energy credit contracts
1375-11 executed under item (v) of subparagraph (G) of
1376-12 paragraph (1) of subsection (c) of Section 1-75 of
1377-13 this Act, and expected collections authorized under
1378-14 subparagraph (E) to determine whether and to what
1379-15 extent the limitations of subparagraph (E) would be
1380-16 exceeded by additional renewable energy credit
1381-17 procurement contract awards.
1382-18 (aa) If the Agency determines that additional
1383-19 renewable energy credit procurement contract
1384-20 awards could be made without exceeding the
1385-21 limitations of subparagraph (E), then the
1386-22 procurements shall be authorized at a scale
1387-23 determined not to exceed the limitations of
1388-24 subparagraph (E) in a manner consistent with the
1389-25 priorities of this Section.
1390-26 (bb) If the Agency determines that additional
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1401-1 renewable energy credit procurement contract
1402-2 awards cannot be made without exceeding the
1403-3 limitations of subparagraph (E), then the Agency
1404-4 shall suspend any new contract awards for the
1405-5 procurement of renewable energy credits until a
1406-6 new rate impact determination is made under
1407-7 subparagraph (E).
1408-8 (cc) Agency determinations made under this
1409-9 item (iv) shall be detailed and comprehensive and,
1410-10 if not made through the Agency's Long-Term
1411-11 Renewable Resources Procurement Plan, shall be
1412-12 filed as a compliance filing in the most recent
1413-13 docketed proceeding approving the Agency's
1414-14 Long-Term Renewable Resources Procurement Plan.
1415-15 (dd) With respect to the procurement of
1416-16 renewable energy credits authorized through
1417-17 programs administered under subsection (b) of
1418-18 Section 1-56 and subparagraphs (K) through (M) of
1419-19 paragraph (1) of subsection (k) of Section 1-75 of
1420-20 this Act, the award of contracts for the
1421-21 procurement of renewable energy credits shall be
1422-22 suspended or reduced only at the conclusion of the
1423-23 program year in which the notice provided for
1424-24 under item (iii) of this subparagraph (E-5) is
1425-25 made.
1426-26 (ee) The contract shall provide that, so long
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1437-1 as at least one of: (i) the cost recovery
1438-2 mechanisms referenced in subsection (k) of Section
1439-3 16-108 and subsection (l) of Section 16-111.5 of
1440-4 the Public Utilities Act remains in full force
1441-5 without limitation or (ii) the utility is
1442-6 otherwise authorized and or entitled to full,
1443-7 prompt, and uninterrupted recovery of its costs
1444-8 through any other mechanism, then such seller
1445-9 shall be entitled to full, prompt, and
1446-10 uninterrupted payment under the applicable
1447-11 contract notwithstanding the application of this
1448-12 subparagraph (E).
1449-13 (F) If the limitation on the amount of renewable
1450-14 energy resources procured in subparagraph (E) of this
1451-15 paragraph (1) prevents the Agency from meeting all of the
1452-16 goals in this subsection (c), the Agency's long-term plan
1453-17 shall prioritize compliance with the requirements of this
1454-18 subsection (c) regarding renewable energy credits in the
1455-19 following order:
1456-20 (i) renewable energy credits under existing
1457-21 contractual obligations as of June 1, 2021;
1458-22 (i-5) funding for the Illinois Solar for All
1459-23 Program, as described in subparagraph (O) of this
1460-24 paragraph (1);
1461-25 (ii) renewable energy credits necessary to comply
1462-26 with the new wind and new photovoltaic procurement
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1473-1 requirements described in items (i) through (iii) of
1474-2 subparagraph (C) of this paragraph (1); and
1475-3 (iii) renewable energy credits necessary to meet
1476-4 the remaining requirements of this subsection (c).
1477-5 (G) The following provisions shall apply to the
1478-6 Agency's procurement of renewable energy credits under
1479-7 this subsection (c):
1480-8 (i) Notwithstanding whether a long-term renewable
1481-9 resources procurement plan has been approved, the
1482-10 Agency shall conduct an initial forward procurement
1483-11 for renewable energy credits from new utility-scale
1484-12 wind projects within 160 days after June 1, 2017 (the
1485-13 effective date of Public Act 99-906). For the purposes
1486-14 of this initial forward procurement, the Agency shall
1487-15 solicit 15-year contracts for delivery of 1,000,000
1488-16 renewable energy credits delivered annually from new
1489-17 utility-scale wind projects to begin delivery on June
1490-18 1, 2019, if available, but not later than June 1, 2021,
1491-19 unless the project has delays in the establishment of
1492-20 an operating interconnection with the applicable
1493-21 transmission or distribution system as a result of the
1494-22 actions or inactions of the transmission or
1495-23 distribution provider, or other causes for force
1496-24 majeure as outlined in the procurement contract, in
1497-25 which case, not later than June 1, 2022. Payments to
1498-26 suppliers of renewable energy credits shall commence
1499-
1500-
1501-
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1505-
1506-
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1508- HB1056 Engrossed - 43 - LRB104 03146 SPS 13167 b
1509-1 upon delivery. Renewable energy credits procured under
1510-2 this initial procurement shall be included in the
1511-3 Agency's long-term plan and shall apply to all
1512-4 renewable energy goals in this subsection (c).
1513-5 (ii) Notwithstanding whether a long-term renewable
1514-6 resources procurement plan has been approved, the
1515-7 Agency shall conduct an initial forward procurement
1516-8 for renewable energy credits from new utility-scale
1517-9 solar projects and brownfield site photovoltaic
1518-10 projects within one year after June 1, 2017 (the
1519-11 effective date of Public Act 99-906). For the purposes
1520-12 of this initial forward procurement, the Agency shall
1521-13 solicit 15-year contracts for delivery of 1,000,000
1522-14 renewable energy credits delivered annually from new
1523-15 utility-scale solar projects and brownfield site
1524-16 photovoltaic projects to begin delivery on June 1,
1525-17 2019, if available, but not later than June 1, 2021,
1526-18 unless the project has delays in the establishment of
1527-19 an operating interconnection with the applicable
1528-20 transmission or distribution system as a result of the
1529-21 actions or inactions of the transmission or
1530-22 distribution provider, or other causes for force
1531-23 majeure as outlined in the procurement contract, in
1532-24 which case, not later than June 1, 2022. The Agency may
1533-25 structure this initial procurement in one or more
1534-26 discrete procurement events. Payments to suppliers of
1535-
1536-
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1541-
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1544- HB1056 Engrossed - 44 - LRB104 03146 SPS 13167 b
1545-1 renewable energy credits shall commence upon delivery.
1546-2 Renewable energy credits procured under this initial
1547-3 procurement shall be included in the Agency's
1548-4 long-term plan and shall apply to all renewable energy
1549-5 goals in this subsection (c).
1550-6 (iii) Notwithstanding whether the Commission has
1551-7 approved the periodic long-term renewable resources
1552-8 procurement plan revision described in Section
1553-9 16-111.5 of the Public Utilities Act, the Agency shall
1554-10 conduct at least one subsequent forward procurement
1555-11 for renewable energy credits from new utility-scale
1556-12 wind projects, new utility-scale solar projects, and
1557-13 new brownfield site photovoltaic projects within 240
1558-14 days after the effective date of this amendatory Act
1559-15 of the 102nd General Assembly in quantities necessary
1560-16 to meet the requirements of subparagraph (C) of this
1561-17 paragraph (1) through the delivery year beginning June
1562-18 1, 2021.
1563-19 (iv) Notwithstanding whether the Commission has
1564-20 approved the periodic long-term renewable resources
1565-21 procurement plan revision described in Section
1566-22 16-111.5 of the Public Utilities Act, the Agency shall
1567-23 open capacity for each category in the Adjustable
1568-24 Block program within 90 days after the effective date
1569-25 of this amendatory Act of the 102nd General Assembly
1570-26 manner:
1571-
1572-
1573-
1574-
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1577-
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1580- HB1056 Engrossed - 45 - LRB104 03146 SPS 13167 b
1581-1 (1) The Agency shall open the first block of
1582-2 annual capacity for the category described in item
1583-3 (i) of subparagraph (K) of this paragraph (1). The
1584-4 first block of annual capacity for item (i) shall
1585-5 be for at least 75 megawatts of total nameplate
1586-6 capacity. The price of the renewable energy credit
1587-7 for this block of capacity shall be 4% less than
1588-8 the price of the last open block in this category.
1589-9 Projects on a waitlist shall be awarded contracts
1590-10 first in the order in which they appear on the
1591-11 waitlist. Notwithstanding anything to the
1592-12 contrary, for those renewable energy credits that
1593-13 qualify and are procured under this subitem (1) of
1594-14 this item (iv), the renewable energy credit
1595-15 delivery contract value shall be paid in full,
1596-16 based on the estimated generation during the first
1597-17 15 years of operation, by the contracting
1598-18 utilities at the time that the facility producing
1599-19 the renewable energy credits is interconnected at
1600-20 the distribution system level of the utility and
1601-21 verified as energized and in compliance by the
1602-22 Program Administrator. The electric utility shall
1603-23 receive and retire all renewable energy credits
1604-24 generated by the project for the first 15 years of
1605-25 operation. Renewable energy credits generated by
1606-26 the project thereafter shall not be transferred
1607-
1608-
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1613-
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1616- HB1056 Engrossed - 46 - LRB104 03146 SPS 13167 b
1617-1 under the renewable energy credit delivery
1618-2 contract with the counterparty electric utility.
1619-3 (2) The Agency shall open the first block of
1620-4 annual capacity for the category described in item
1621-5 (ii) of subparagraph (K) of this paragraph (1).
1622-6 The first block of annual capacity for item (ii)
1623-7 shall be for at least 75 megawatts of total
1624-8 nameplate capacity.
1625-9 (A) The price of the renewable energy
1626-10 credit for any project on a waitlist for this
1627-11 category before the opening of this block
1628-12 shall be 4% less than the price of the last
1629-13 open block in this category. Projects on the
1630-14 waitlist shall be awarded contracts first in
1631-15 the order in which they appear on the
1632-16 waitlist. Any projects that are less than or
1633-17 equal to 25 kilowatts in size on the waitlist
1634-18 for this capacity shall be moved to the
1635-19 waitlist for paragraph (1) of this item (iv).
1636-20 Notwithstanding anything to the contrary,
1637-21 projects that were on the waitlist prior to
1638-22 opening of this block shall not be required to
1639-23 be in compliance with the requirements of
1640-24 subparagraph (Q) of this paragraph (1) of this
1641-25 subsection (c). Notwithstanding anything to
1642-26 the contrary, for those renewable energy
1643-
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1649-
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1652- HB1056 Engrossed - 47 - LRB104 03146 SPS 13167 b
1653-1 credits procured from projects that were on
1654-2 the waitlist for this category before the
1655-3 opening of this block 20% of the renewable
1656-4 energy credit delivery contract value, based
1657-5 on the estimated generation during the first
1658-6 15 years of operation, shall be paid by the
1659-7 contracting utilities at the time that the
1660-8 facility producing the renewable energy
1661-9 credits is interconnected at the distribution
1662-10 system level of the utility and verified as
1663-11 energized by the Program Administrator. The
1664-12 remaining portion shall be paid ratably over
1665-13 the subsequent 4-year period. The electric
1666-14 utility shall receive and retire all renewable
1667-15 energy credits generated by the project during
1668-16 the first 15 years of operation. Renewable
1669-17 energy credits generated by the project
1670-18 thereafter shall not be transferred under the
1671-19 renewable energy credit delivery contract with
1672-20 the counterparty electric utility.
1673-21 (B) The price of renewable energy credits
1674-22 for any project not on the waitlist for this
1675-23 category before the opening of the block shall
1676-24 be determined and published by the Agency.
1677-25 Projects not on a waitlist as of the opening
1678-26 of this block shall be subject to the
1679-
1680-
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1685-
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1688- HB1056 Engrossed - 48 - LRB104 03146 SPS 13167 b
1689-1 requirements of subparagraph (Q) of this
1690-2 paragraph (1), as applicable. Projects not on
1691-3 a waitlist as of the opening of this block
1692-4 shall be subject to the contract provisions
1693-5 outlined in item (iii) of subparagraph (L) of
1694-6 this paragraph (1). The Agency shall strive to
1695-7 publish updated prices and an updated
1696-8 renewable energy credit delivery contract as
1697-9 quickly as possible.
1698-10 (3) For opening the first 2 blocks of annual
1699-11 capacity for projects participating in item (iii)
1700-12 of subparagraph (K) of paragraph (1) of subsection
1701-13 (c), projects shall be selected exclusively from
1702-14 those projects on the ordinal waitlists of
1703-15 community renewable generation projects
1704-16 established by the Agency based on the status of
1705-17 those ordinal waitlists as of December 31, 2020,
1706-18 and only those projects previously determined to
1707-19 be eligible for the Agency's April 2019 community
1708-20 solar project selection process.
1709-21 The first 2 blocks of annual capacity for item
1710-22 (iii) shall be for 250 megawatts of total
1711-23 nameplate capacity, with both blocks opening
1712-24 simultaneously under the schedule outlined in the
1713-25 paragraphs below. Projects shall be selected as
1714-26 follows:
1715-
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1721-
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1724- HB1056 Engrossed - 49 - LRB104 03146 SPS 13167 b
1725-1 (A) The geographic balance of selected
1726-2 projects shall follow the Group classification
1727-3 found in the Agency's Revised Long-Term
1728-4 Renewable Resources Procurement Plan, with 70%
1729-5 of capacity allocated to projects on the Group
1730-6 B waitlist and 30% of capacity allocated to
1731-7 projects on the Group A waitlist.
1732-8 (B) Contract awards for waitlisted
1733-9 projects shall be allocated proportionate to
1734-10 the total nameplate capacity amount across
1735-11 both ordinal waitlists associated with that
1736-12 applicant firm or its affiliates, subject to
1737-13 the following conditions.
1738-14 (i) Each applicant firm having a
1739-15 waitlisted project eligible for selection
1740-16 shall receive no less than 500 kilowatts
1741-17 in awarded capacity across all groups, and
1742-18 no approved vendor may receive more than
1743-19 20% of each Group's waitlist allocation.
1744-20 (ii) Each applicant firm, upon
1745-21 receiving an award of program capacity
1746-22 proportionate to its waitlisted capacity,
1747-23 may then determine which waitlisted
1748-24 projects it chooses to be selected for a
1749-25 contract award up to that capacity amount.
1750-26 (iii) Assuming all other program
1751-
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1757-
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1760- HB1056 Engrossed - 50 - LRB104 03146 SPS 13167 b
1761-1 requirements are met, applicant firms may
1762-2 adjust the nameplate capacity of applicant
1763-3 projects without losing waitlist
1764-4 eligibility, so long as no project is
1765-5 greater than 2,000 kilowatts in size.
1766-6 (iv) Assuming all other program
1767-7 requirements are met, applicant firms may
1768-8 adjust the expected production associated
1769-9 with applicant projects, subject to
1770-10 verification by the Program Administrator.
1771-11 (C) After a review of affiliate
1772-12 information and the current ordinal waitlists,
1773-13 the Agency shall announce the nameplate
1774-14 capacity award amounts associated with
1775-15 applicant firms no later than 90 days after
1776-16 the effective date of this amendatory Act of
1777-17 the 102nd General Assembly.
1778-18 (D) Applicant firms shall submit their
1779-19 portfolio of projects used to satisfy those
1780-20 contract awards no less than 90 days after the
1781-21 Agency's announcement. The total nameplate
1782-22 capacity of all projects used to satisfy that
1783-23 portfolio shall be no greater than the
1784-24 Agency's nameplate capacity award amount
1785-25 associated with that applicant firm. An
1786-26 applicant firm may decline, in whole or in
1787-
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1793-
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1796- HB1056 Engrossed - 51 - LRB104 03146 SPS 13167 b
1797-1 part, its nameplate capacity award without
1798-2 penalty, with such unmet capacity rolled over
1799-3 to the next block opening for project
1800-4 selection under item (iii) of subparagraph (K)
1801-5 of this subsection (c). Any projects not
1802-6 included in an applicant firm's portfolio may
1803-7 reapply without prejudice upon the next block
1804-8 reopening for project selection under item
1805-9 (iii) of subparagraph (K) of this subsection
1806-10 (c).
1807-11 (E) The renewable energy credit delivery
1808-12 contract shall be subject to the contract and
1809-13 payment terms outlined in item (iv) of
1810-14 subparagraph (L) of this subsection (c).
1811-15 Contract instruments used for this
1812-16 subparagraph shall contain the following
1813-17 terms:
1814-18 (i) Renewable energy credit prices
1815-19 shall be fixed, without further adjustment
1816-20 under any other provision of this Act or
1817-21 for any other reason, at 10% lower than
1818-22 prices applicable to the last open block
1819-23 for this category, inclusive of any adders
1820-24 available for achieving a minimum of 50%
1821-25 of subscribers to the project's nameplate
1822-26 capacity being residential or small
1823-
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1833-1 commercial customers with subscriptions of
1834-2 below 25 kilowatts in size;
1835-3 (ii) A requirement that a minimum of
1836-4 50% of subscribers to the project's
1837-5 nameplate capacity be residential or small
1838-6 commercial customers with subscriptions of
1839-7 below 25 kilowatts in size;
1840-8 (iii) Permission for the ability of a
1841-9 contract holder to substitute projects
1842-10 with other waitlisted projects without
1843-11 penalty should a project receive a
1844-12 non-binding estimate of costs to construct
1845-13 the interconnection facilities and any
1846-14 required distribution upgrades associated
1847-15 with that project of greater than 30 cents
1848-16 per watt AC of that project's nameplate
1849-17 capacity. In developing the applicable
1850-18 contract instrument, the Agency may
1851-19 consider whether other circumstances
1852-20 outside of the control of the applicant
1853-21 firm should also warrant project
1854-22 substitution rights.
1855-23 The Agency shall publish a finalized
1856-24 updated renewable energy credit delivery
1857-25 contract developed consistent with these terms
1858-26 and conditions no less than 30 days before
1859-
1860-
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1868- HB1056 Engrossed - 53 - LRB104 03146 SPS 13167 b
1869-1 applicant firms must submit their portfolio of
1870-2 projects pursuant to item (D).
1871-3 (F) To be eligible for an award, the
1872-4 applicant firm shall certify that not less
1873-5 than prevailing wage, as determined pursuant
1874-6 to the Illinois Prevailing Wage Act, was or
1875-7 will be paid to employees who are engaged in
1876-8 construction activities associated with a
1877-9 selected project.
1878-10 (4) The Agency shall open the first block of
1879-11 annual capacity for the category described in item
1880-12 (iv) of subparagraph (K) of this paragraph (1).
1881-13 The first block of annual capacity for item (iv)
1882-14 shall be for at least 50 megawatts of total
1883-15 nameplate capacity. Renewable energy credit prices
1884-16 shall be fixed, without further adjustment under
1885-17 any other provision of this Act or for any other
1886-18 reason, at the price in the last open block in the
1887-19 category described in item (ii) of subparagraph
1888-20 (K) of this paragraph (1). Pricing for future
1889-21 blocks of annual capacity for this category may be
1890-22 adjusted in the Agency's second revision to its
1891-23 Long-Term Renewable Resources Procurement Plan.
1892-24 Projects in this category shall be subject to the
1893-25 contract terms outlined in item (iv) of
1894-26 subparagraph (L) of this paragraph (1).
1895-
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1904- HB1056 Engrossed - 54 - LRB104 03146 SPS 13167 b
1905-1 (5) The Agency shall open the equivalent of 2
1906-2 years of annual capacity for the category
1907-3 described in item (v) of subparagraph (K) of this
1908-4 paragraph (1). The first block of annual capacity
1909-5 for item (v) shall be for at least 10 megawatts of
1910-6 total nameplate capacity. Notwithstanding the
1911-7 provisions of item (v) of subparagraph (K) of this
1912-8 paragraph (1), for the purpose of this initial
1913-9 block, the agency shall accept new project
1914-10 applications intended to increase the diversity of
1915-11 areas hosting community solar projects, the
1916-12 business models of projects, and the size of
1917-13 projects, as described by the Agency in its
1918-14 long-term renewable resources procurement plan
1919-15 that is approved as of the effective date of this
1920-16 amendatory Act of the 102nd General Assembly.
1921-17 Projects in this category shall be subject to the
1922-18 contract terms outlined in item (iii) of
1923-19 subsection (L) of this paragraph (1).
1924-20 (6) The Agency shall open the first blocks of
1925-21 annual capacity for the category described in item
1926-22 (vi) of subparagraph (K) of this paragraph (1),
1927-23 with allocations of capacity within the block
1928-24 generally matching the historical share of block
1929-25 capacity allocated between the category described
1930-26 in items (i) and (ii) of subparagraph (K) of this
1931-
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1940- HB1056 Engrossed - 55 - LRB104 03146 SPS 13167 b
1941-1 paragraph (1). The first two blocks of annual
1942-2 capacity for item (vi) shall be for at least 75
1943-3 megawatts of total nameplate capacity. The price
1944-4 of renewable energy credits for the blocks of
1945-5 capacity shall be 4% less than the price of the
1946-6 last open blocks in the categories described in
1947-7 items (i) and (ii) of subparagraph (K) of this
1948-8 paragraph (1). Pricing for future blocks of annual
1949-9 capacity for this category may be adjusted in the
1950-10 Agency's second revision to its Long-Term
1951-11 Renewable Resources Procurement Plan. Projects in
1952-12 this category shall be subject to the applicable
1953-13 contract terms outlined in items (ii) and (iii) of
1954-14 subparagraph (L) of this paragraph (1).
1955-15 (v) Upon the effective date of this amendatory Act
1956-16 of the 102nd General Assembly, for all competitive
1957-17 procurements and any procurements of renewable energy
1958-18 credit from new utility-scale wind and new
1959-19 utility-scale photovoltaic projects, the Agency shall
1960-20 procure indexed renewable energy credits and direct
1961-21 respondents to offer a strike price.
1962-22 (1) The purchase price of the indexed
1963-23 renewable energy credit payment shall be
1964-24 calculated for each settlement period. That
1965-25 payment, for any settlement period, shall be equal
1966-26 to the difference resulting from subtracting the
1967-
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1977-1 strike price from the index price for that
1978-2 settlement period. If this difference results in a
1979-3 negative number, the indexed REC counterparty
1980-4 shall owe the seller the absolute value multiplied
1981-5 by the quantity of energy produced in the relevant
1982-6 settlement period. If this difference results in a
1983-7 positive number, the seller shall owe the indexed
1984-8 REC counterparty this amount multiplied by the
1985-9 quantity of energy produced in the relevant
1986-10 settlement period.
1987-11 (2) Parties shall cash settle every month,
1988-12 summing up all settlements (both positive and
1989-13 negative, if applicable) for the prior month.
1990-14 (3) To ensure funding in the annual budget
1991-15 established under subparagraph (E) for indexed
1992-16 renewable energy credit procurements for each year
1993-17 of the term of such contracts, which must have a
1994-18 minimum tenure of 20 calendar years, the
1995-19 procurement administrator, Agency, Commission
1996-20 staff, and procurement monitor shall quantify the
1997-21 annual cost of the contract by utilizing an
1998-22 industry-standard, third-party forward price curve
1999-23 for energy at the appropriate hub or load zone,
2000-24 including the estimated magnitude and timing of
2001-25 the price effects related to federal carbon
2002-26 controls. Each forward price curve shall contain a
2003-
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2009-
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2012- HB1056 Engrossed - 57 - LRB104 03146 SPS 13167 b
2013-1 specific value of the forecasted market price of
2014-2 electricity for each annual delivery year of the
2015-3 contract. For procurement planning purposes, the
2016-4 impact on the annual budget for the cost of
2017-5 indexed renewable energy credits for each delivery
2018-6 year shall be determined as the expected annual
2019-7 contract expenditure for that year, equaling the
2020-8 difference between (i) the sum across all relevant
2021-9 contracts of the applicable strike price
2022-10 multiplied by contract quantity and (ii) the sum
2023-11 across all relevant contracts of the forward price
2024-12 curve for the applicable load zone for that year
2025-13 multiplied by contract quantity. The contracting
2026-14 utility shall not assume an obligation in excess
2027-15 of the estimated annual cost of the contracts for
2028-16 indexed renewable energy credits. Forward curves
2029-17 shall be revised on an annual basis as updated
2030-18 forward price curves are released and filed with
2031-19 the Commission in the proceeding approving the
2032-20 Agency's most recent long-term renewable resources
2033-21 procurement plan. If the expected contract spend
2034-22 is higher or lower than the total quantity of
2035-23 contracts multiplied by the forward price curve
2036-24 value for that year, the forward price curve shall
2037-25 be updated by the procurement administrator, in
2038-26 consultation with the Agency, Commission staff,
2039-
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2049-1 and procurement monitors, using then-currently
2050-2 available price forecast data and additional
2051-3 budget dollars shall be obligated or reobligated
2052-4 as appropriate.
2053-5 (4) To ensure that indexed renewable energy
2054-6 credit prices remain predictable and affordable,
2055-7 the Agency may consider the institution of a price
2056-8 collar on REC prices paid under indexed renewable
2057-9 energy credit procurements establishing floor and
2058-10 ceiling REC prices applicable to indexed REC
2059-11 contract prices. Any price collars applicable to
2060-12 indexed REC procurements shall be proposed by the
2061-13 Agency through its long-term renewable resources
2062-14 procurement plan.
2063-15 (vi) All procurements under this subparagraph (G),
2064-16 including the procurement of renewable energy credits
2065-17 from hydropower facilities, shall comply with the
2066-18 geographic requirements in subparagraph (I) of this
2067-19 paragraph (1) and shall follow the procurement
2068-20 processes and procedures described in this Section and
2069-21 Section 16-111.5 of the Public Utilities Act to the
2070-22 extent practicable, and these processes and procedures
2071-23 may be expedited to accommodate the schedule
2072-24 established by this subparagraph (G).
2073-25 (vii) On and after the effective date of this
2074-26 amendatory Act of the 103rd General Assembly, for all
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2085-1 procurements of renewable energy credits from
2086-2 hydropower facilities, the Agency shall establish
2087-3 contract terms designed to optimize existing
2088-4 hydropower facilities through modernization or
2089-5 retooling and establish new hydropower facilities at
2090-6 existing dams. Procurements made under this item (vii)
2091-7 shall prioritize projects located in designated
2092-8 environmental justice communities, as defined in
2093-9 subsection (b) of Section 1-56 of this Act, or in
2094-10 projects located in units of local government with
2095-11 median incomes that do not exceed 82% of the median
2096-12 income of the State.
2097-13 (H) The procurement of renewable energy resources for
2098-14 a given delivery year shall be reduced as described in
2099-15 this subparagraph (H) if an alternative retail electric
2100-16 supplier meets the requirements described in this
2101-17 subparagraph (H).
2102-18 (i) Within 45 days after June 1, 2017 (the
2103-19 effective date of Public Act 99-906), an alternative
2104-20 retail electric supplier or its successor shall submit
2105-21 an informational filing to the Illinois Commerce
2106-22 Commission certifying that, as of December 31, 2015,
2107-23 the alternative retail electric supplier owned one or
2108-24 more electric generating facilities that generates
2109-25 renewable energy resources as defined in Section 1-10
2110-26 of this Act, provided that such facilities are not
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2121-1 powered by wind or photovoltaics, and the facilities
2122-2 generate one renewable energy credit for each
2123-3 megawatthour of energy produced from the facility.
2124-4 The informational filing shall identify each
2125-5 facility that was eligible to satisfy the alternative
2126-6 retail electric supplier's obligations under Section
2127-7 16-115D of the Public Utilities Act as described in
2128-8 this item (i).
2129-9 (ii) For a given delivery year, the alternative
2130-10 retail electric supplier may elect to supply its
2131-11 retail customers with renewable energy credits from
2132-12 the facility or facilities described in item (i) of
2133-13 this subparagraph (H) that continue to be owned by the
2134-14 alternative retail electric supplier.
2135-15 (iii) The alternative retail electric supplier
2136-16 shall notify the Agency and the applicable utility, no
2137-17 later than February 28 of the year preceding the
2138-18 applicable delivery year or 15 days after June 1, 2017
2139-19 (the effective date of Public Act 99-906), whichever
2140-20 is later, of its election under item (ii) of this
2141-21 subparagraph (H) to supply renewable energy credits to
2142-22 retail customers of the utility. Such election shall
2143-23 identify the amount of renewable energy credits to be
2144-24 supplied by the alternative retail electric supplier
2145-25 to the utility's retail customers and the source of
2146-26 the renewable energy credits identified in the
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2157-1 informational filing as described in item (i) of this
2158-2 subparagraph (H), subject to the following
2159-3 limitations:
2160-4 For the delivery year beginning June 1, 2018,
2161-5 the maximum amount of renewable energy credits to
2162-6 be supplied by an alternative retail electric
2163-7 supplier under this subparagraph (H) shall be 68%
2164-8 multiplied by 25% multiplied by 14.5% multiplied
2165-9 by the amount of metered electricity
2166-10 (megawatt-hours) delivered by the alternative
2167-11 retail electric supplier to Illinois retail
2168-12 customers during the delivery year ending May 31,
2169-13 2016.
2170-14 For delivery years beginning June 1, 2019 and
2171-15 each year thereafter, the maximum amount of
2172-16 renewable energy credits to be supplied by an
2173-17 alternative retail electric supplier under this
2174-18 subparagraph (H) shall be 68% multiplied by 50%
2175-19 multiplied by 16% multiplied by the amount of
2176-20 metered electricity (megawatt-hours) delivered by
2177-21 the alternative retail electric supplier to
2178-22 Illinois retail customers during the delivery year
2179-23 ending May 31, 2016, provided that the 16% value
2180-24 shall increase by 1.5% each delivery year
2181-25 thereafter to 25% by the delivery year beginning
2182-26 June 1, 2025, and thereafter the 25% value shall
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2193-1 apply to each delivery year.
2194-2 For each delivery year, the total amount of
2195-3 renewable energy credits supplied by all alternative
2196-4 retail electric suppliers under this subparagraph (H)
2197-5 shall not exceed 9% of the Illinois target renewable
2198-6 energy credit quantity. The Illinois target renewable
2199-7 energy credit quantity for the delivery year beginning
2200-8 June 1, 2018 is 14.5% multiplied by the total amount of
2201-9 metered electricity (megawatt-hours) delivered in the
2202-10 delivery year immediately preceding that delivery
2203-11 year, provided that the 14.5% shall increase by 1.5%
2204-12 each delivery year thereafter to 25% by the delivery
2205-13 year beginning June 1, 2025, and thereafter the 25%
2206-14 value shall apply to each delivery year.
2207-15 If the requirements set forth in items (i) through
2208-16 (iii) of this subparagraph (H) are met, the charges
2209-17 that would otherwise be applicable to the retail
2210-18 customers of the alternative retail electric supplier
2211-19 under paragraph (6) of this subsection (c) for the
2212-20 applicable delivery year shall be reduced by the ratio
2213-21 of the quantity of renewable energy credits supplied
2214-22 by the alternative retail electric supplier compared
2215-23 to that supplier's target renewable energy credit
2216-24 quantity. The supplier's target renewable energy
2217-25 credit quantity for the delivery year beginning June
2218-26 1, 2018 is 14.5% multiplied by the total amount of
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2229-1 metered electricity (megawatt-hours) delivered by the
2230-2 alternative retail supplier in that delivery year,
2231-3 provided that the 14.5% shall increase by 1.5% each
2232-4 delivery year thereafter to 25% by the delivery year
2233-5 beginning June 1, 2025, and thereafter the 25% value
2234-6 shall apply to each delivery year.
2235-7 On or before April 1 of each year, the Agency shall
2236-8 annually publish a report on its website that
2237-9 identifies the aggregate amount of renewable energy
2238-10 credits supplied by alternative retail electric
2239-11 suppliers under this subparagraph (H).
2240-12 (I) The Agency shall design its long-term renewable
2241-13 energy procurement plan to maximize the State's interest
2242-14 in the health, safety, and welfare of its residents,
2243-15 including but not limited to minimizing sulfur dioxide,
2244-16 nitrogen oxide, particulate matter and other pollution
2245-17 that adversely affects public health in this State,
2246-18 increasing fuel and resource diversity in this State,
2247-19 enhancing the reliability and resiliency of the
2248-20 electricity distribution system in this State, meeting
2249-21 goals to limit carbon dioxide emissions under federal or
2250-22 State law, and contributing to a cleaner and healthier
2251-23 environment for the citizens of this State. In order to
2252-24 further these legislative purposes, renewable energy
2253-25 credits shall be eligible to be counted toward the
2254-26 renewable energy requirements of this subsection (c) if
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2265-1 they are generated from facilities located in this State.
2266-2 The Agency may qualify renewable energy credits from
2267-3 facilities located in states adjacent to Illinois or
2268-4 renewable energy credits associated with the electricity
2269-5 generated by a utility-scale wind energy facility or
2270-6 utility-scale photovoltaic facility and transmitted by a
2271-7 qualifying direct current project described in subsection
2272-8 (b-5) of Section 8-406 of the Public Utilities Act to a
2273-9 delivery point on the electric transmission grid located
2274-10 in this State or a state adjacent to Illinois, if the
2275-11 generator demonstrates and the Agency determines that the
2276-12 operation of such facility or facilities will help promote
2277-13 the State's interest in the health, safety, and welfare of
2278-14 its residents based on the public interest criteria
2279-15 described above. For the purposes of this Section,
2280-16 renewable resources that are delivered via a high voltage
2281-17 direct current converter station located in Illinois shall
2282-18 be deemed generated in Illinois at the time and location
2283-19 the energy is converted to alternating current by the high
2284-20 voltage direct current converter station if the high
2285-21 voltage direct current transmission line: (i) after the
2286-22 effective date of this amendatory Act of the 102nd General
2287-23 Assembly, was constructed with a project labor agreement;
2288-24 (ii) is capable of transmitting electricity at 525kv;
2289-25 (iii) has an Illinois converter station located and
2290-26 interconnected in the region of the PJM Interconnection,
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2301-1 LLC; (iv) does not operate as a public utility; and (v) if
2302-2 the high voltage direct current transmission line was
2303-3 energized after June 1, 2023. To ensure that the public
2304-4 interest criteria are applied to the procurement and given
2305-5 full effect, the Agency's long-term procurement plan shall
2306-6 describe in detail how each public interest factor shall
2307-7 be considered and weighted for facilities located in
2308-8 states adjacent to Illinois.
2309-9 (J) In order to promote the competitive development of
2310-10 renewable energy resources in furtherance of the State's
2311-11 interest in the health, safety, and welfare of its
2312-12 residents, renewable energy credits shall not be eligible
2313-13 to be counted toward the renewable energy requirements of
2314-14 this subsection (c) if they are sourced from a generating
2315-15 unit whose costs were being recovered through rates
2316-16 regulated by this State or any other state or states on or
2317-17 after January 1, 2017. Each contract executed to purchase
2318-18 renewable energy credits under this subsection (c) shall
2319-19 provide for the contract's termination if the costs of the
2320-20 generating unit supplying the renewable energy credits
2321-21 subsequently begin to be recovered through rates regulated
2322-22 by this State or any other state or states; and each
2323-23 contract shall further provide that, in that event, the
2324-24 supplier of the credits must return 110% of all payments
2325-25 received under the contract. Amounts returned under the
2326-26 requirements of this subparagraph (J) shall be retained by
2327-
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2337-1 the utility and all of these amounts shall be used for the
2338-2 procurement of additional renewable energy credits from
2339-3 new wind or new photovoltaic resources as defined in this
2340-4 subsection (c). The long-term plan shall provide that
2341-5 these renewable energy credits shall be procured in the
2342-6 next procurement event.
2343-7 Notwithstanding the limitations of this subparagraph
2344-8 (J), renewable energy credits sourced from generating
2345-9 units that are constructed, purchased, owned, or leased by
2346-10 an electric utility as part of an approved project,
2347-11 program, or pilot under Section 1-56 of this Act shall be
2348-12 eligible to be counted toward the renewable energy
2349-13 requirements of this subsection (c), regardless of how the
2350-14 costs of these units are recovered. As long as a
2351-15 generating unit or an identifiable portion of a generating
2352-16 unit has not had and does not have its costs recovered
2353-17 through rates regulated by this State or any other state,
2354-18 HVDC renewable energy credits associated with that
2355-19 generating unit or identifiable portion thereof shall be
2356-20 eligible to be counted toward the renewable energy
2357-21 requirements of this subsection (c).
2358-22 (K) The long-term renewable resources procurement plan
2359-23 developed by the Agency in accordance with subparagraph
2360-24 (A) of this paragraph (1) shall include an Adjustable
2361-25 Block program for the procurement of renewable energy
2362-26 credits from new photovoltaic projects that are
2363-
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2373-1 distributed renewable energy generation devices or new
2374-2 photovoltaic community renewable generation projects. The
2375-3 Adjustable Block program shall be generally designed to
2376-4 provide for the steady, predictable, and sustainable
2377-5 growth of new solar photovoltaic development in Illinois.
2378-6 To this end, the Adjustable Block program shall provide a
2379-7 transparent annual schedule of prices and quantities to
2380-8 enable the photovoltaic market to scale up and for
2381-9 renewable energy credit prices to adjust at a predictable
2382-10 rate over time. The prices set by the Adjustable Block
2383-11 program can be reflected as a set value or as the product
2384-12 of a formula.
2385-13 The Adjustable Block program shall include for each
2386-14 category of eligible projects for each delivery year: a
2387-15 single block of nameplate capacity, a price for renewable
2388-16 energy credits within that block, and the terms and
2389-17 conditions for securing a spot on a waitlist once the
2390-18 block is fully committed or reserved. Except as outlined
2391-19 below, the waitlist of projects in a given year will carry
2392-20 over to apply to the subsequent year when another block is
2393-21 opened. Only projects energized on or after June 1, 2017
2394-22 shall be eligible for the Adjustable Block program. For
2395-23 each category for each delivery year the Agency shall
2396-24 determine the amount of generation capacity in each block,
2397-25 and the purchase price for each block, provided that the
2398-26 purchase price provided and the total amount of generation
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2409-1 in all blocks for all categories shall be sufficient to
2410-2 meet the goals in this subsection (c). The Agency shall
2411-3 strive to issue a single block sized to provide for
2412-4 stability and market growth. The Agency shall establish
2413-5 program eligibility requirements that ensure that projects
2414-6 that enter the program are sufficiently mature to indicate
2415-7 a demonstrable path to completion. The Agency may
2416-8 periodically review its prior decisions establishing the
2417-9 amount of generation capacity in each block, and the
2418-10 purchase price for each block, and may propose, on an
2419-11 expedited basis, changes to these previously set values,
2420-12 including but not limited to redistributing these amounts
2421-13 and the available funds as necessary and appropriate,
2422-14 subject to Commission approval as part of the periodic
2423-15 plan revision process described in Section 16-111.5 of the
2424-16 Public Utilities Act. The Agency may define different
2425-17 block sizes, purchase prices, or other distinct terms and
2426-18 conditions for projects located in different utility
2427-19 service territories if the Agency deems it necessary to
2428-20 meet the goals in this subsection (c).
2429-21 The Adjustable Block program shall include the
2430-22 following categories in at least the following amounts:
2431-23 (i) At least 20% from distributed renewable energy
2432-24 generation devices with a nameplate capacity of no
2433-25 more than 25 kilowatts.
2434-26 (ii) At least 20% from distributed renewable
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2445-1 energy generation devices with a nameplate capacity of
2446-2 more than 25 kilowatts and no more than 5,000
2447-3 kilowatts. The Agency may create sub-categories within
2448-4 this category to account for the differences between
2449-5 projects for small commercial customers, large
2450-6 commercial customers, and public or non-profit
2451-7 customers.
2452-8 (iii) At least 30% from photovoltaic community
2453-9 renewable generation projects. Capacity for this
2454-10 category for the first 2 delivery years after the
2455-11 effective date of this amendatory Act of the 102nd
2456-12 General Assembly shall be allocated to waitlist
2457-13 projects as provided in paragraph (3) of item (iv) of
2458-14 subparagraph (G). Starting in the third delivery year
2459-15 after the effective date of this amendatory Act of the
2460-16 102nd General Assembly or earlier if the Agency
2461-17 determines there is additional capacity needed for to
2462-18 meet previous delivery year requirements, all of the
2463-19 following shall apply:
2464-20 (1) The the Agency shall select projects on a
2465-21 first-come, first-serve basis, however the Agency
2466-22 may suggest additional methods to prioritize
2467-23 projects that are submitted at the same time. ;
2468-24 (2) Projects projects shall have subscriptions
2469-25 of 25 kW or less for at least 50% of the facility's
2470-26 nameplate capacity and the Agency shall price the
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2481-1 renewable energy credits with that as a factor. ;
2482-2 (3) Projects projects shall not be colocated
2483-3 with one or more other community renewable
2484-4 generation projects, as defined in the Agency's
2485-5 first revised long-term renewable resources
2486-6 procurement plan approved by the Commission on
2487-7 February 18, 2020, such that the aggregate
2488-8 nameplate capacity exceeds 5,000 kilowatts. The
2489-9 total nameplate capacity of colocated projects
2490-10 shall be the sum of the capacities of the
2491-11 individual projects. Affiliates may not have
2492-12 shared sales or revenue-sharing arrangements or
2493-13 common debt and equity financing arrangements. For
2494-14 purposes of this subitem (3), separate legal
2495-15 formation of approved vendors shall not preclude a
2496-16 finding of affiliation. Evidence of affiliation
2497-17 may include, but is not limited to, shared
2498-18 personnel, common contractual or financing
2499-19 arrangements, a shared interconnection agreement,
2500-20 excessive fragmentation, or any demonstrable
2501-21 pattern of coordinated action in the
2502-22 pre-development, development, construction, and
2503-23 management of community renewable generation
2504-24 projects. Projects that are later sold to distinct
2505-25 legal entities shall not be exempt from a finding
2506-26 of affiliation if documentation indicates that the
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2517-1 projects (i) share a common origin on a parcel
2518-2 that has been subdivided in the 5 years prior to
2519-3 application or (ii) were pre-developed prior to
2520-4 construction by the same legal entity or an
2521-5 affiliated legal entity. In such cases, the
2522-6 projects shall be treated as colocated for the
2523-7 purposes of aggregate nameplate capacity
2524-8 limitations and Renewable Energy Certificate
2525-9 pricing adjustments. The Agency shall make
2526-10 exceptions to this subitem (3) on a case-by-case
2527-11 basis if it is demonstrated that projects on one
2528-12 parcel or projects on adjacent parcels have
2529-13 separate, nonaffiliated owners. A parcel shall not
2530-14 be divided into multiple parcels within the 5
2531-15 years preceding a project application. If a parcel
2532-16 is divided within the preceding 5 years, a
2533-17 colocation determination shall be made based on
2534-18 the boundaries of the original, undivided parcel.
2535-19 For purposes of determining colocation, an
2536-20 approved vendor who submits an application for a
2537-21 community renewable generation project shall be
2538-22 required to submit sufficient documentation
2539-23 verifying (i) the parcel on which the project is
2540-24 sited has not been subdivided within the 5 years
2541-25 preceding the project application, and (ii) the
2542-26 project is not affiliated with any other community
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2553-1 renewable generation project such that, if the 2
2554-2 projects are deemed colocated, the projects would
2555-3 exceed the 5,000 kilowatts nameplate capacity
2556-4 limitation.
2557-5 For purposes of this subitem (3): ; and
2558-6 "Colocated" means 2 or more community
2559-7 renewable generation projects located on (i) a
2560-8 single parcel or (ii) adjacent parcels, unless it
2561-9 is demonstrated that the projects are developed by
2562-10 unaffiliated entities.
2563-11 "Affiliate" means any other entity that,
2564-12 directly or indirectly through one or more
2565-13 intermediaries, controls, is controlled by, or is
2566-14 under common control of the primary entity or a
2567-15 third entity. "Affiliate" includes family members
2568-16 for the purposes of colocation between projects.
2569-17 "Control" means the possession, directly or
2570-18 indirectly, of the power to direct the management
2571-19 and policies of an entity, whether through the
2572-20 ownership of voting securities, by contract, or
2573-21 otherwise.
2574-22 (4) Projects projects greater than 2 MW may
2575-23 not apply until after the approval of the Agency's
2576-24 revised Long-Term Renewable Resources Procurement
2577-25 Plan after the effective date of this amendatory
2578-26 Act of the 102nd General Assembly.
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2589-1 (5) A project shall not be colocated with one
2590-2 or more other distributed renewable energy
2591-3 generation projects such that the aggregate
2592-4 nameplate capacity of the projects exceeds 5,000
2593-5 kilowatts. Notwithstanding any other provision of
2594-6 this Section, if 2 or more projects are developed,
2595-7 controlled, or originate from the same developer
2596-8 or an affiliated developer and the projects serve
2597-9 affiliated loads, the projects shall be colocated
2598-10 if the projects are located on adjacent parcels.
2599-11 If 2 or more projects are developed, controlled,
2600-12 or originate from the same or affiliated developer
2601-13 and the projects serve unaffiliated loads, the
2602-14 projects shall be colocated if documentation
2603-15 indicates affiliated management and ownership in
2604-16 the pre-development, development, construction,
2605-17 and management of the projects. Projects that are
2606-18 later sold to distinct legal entities shall not be
2607-19 exempt from a finding of affiliation if
2608-20 documentation indicates that the projects were
2609-21 pre-developed by the same legal entity or an
2610-22 affiliated legal entity. For purposes of
2611-23 determining colocation, an approved vendor who
2612-24 submits an application for a distributed renewable
2613-25 energy generation project shall be required to
2614-26 submit sufficient documentation verifying that the
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2625-1 project is not affiliated with any other
2626-2 distributed renewable energy generation project
2627-3 such that, if the 2 projects were deemed
2628-4 colocated, the projects would exceed the 5,000
2629-5 kilowatts nameplate capacity limitation.
2630-6 For the purposes of this subitem (5):
2631-7 "Colocated" means 2 or more distributed
2632-8 renewable energy generation projects that are
2633-9 located on a single parcel, unless the owner of
2634-10 the retail electric account is confirmed to be
2635-11 unaffiliated and the projects serve distinct
2636-12 electrical loads.
2637-13 "Affiliate" has the meaning given to that term
2638-14 in subitem (3) of this item (iii).
2639-15 "Control" has the meaning given to that term
2640-16 in subitem (3) of this item (iii).
2641-17 (iv) At least 15% from distributed renewable
2642-18 generation devices or photovoltaic community renewable
2643-19 generation projects installed on public school land.
2644-20 The Agency may create subcategories within this
2645-21 category to account for the differences between
2646-22 project size or location. Projects located within
2647-23 environmental justice communities or within
2648-24 Organizational Units that fall within Tier 1 or Tier 2
2649-25 shall be given priority. Each of the Agency's periodic
2650-26 updates to its long-term renewable resources
2651-
2652-
2653-
2654-
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2657-
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2660- HB1056 Engrossed - 75 - LRB104 03146 SPS 13167 b
2661-1 procurement plan to incorporate the procurement
2662-2 described in this subparagraph (iv) shall also include
2663-3 the proposed quantities or blocks, pricing, and
2664-4 contract terms applicable to the procurement as
2665-5 indicated herein. In each such update and procurement,
2666-6 the Agency shall set the renewable energy credit price
2667-7 and establish payment terms for the renewable energy
2668-8 credits procured pursuant to this subparagraph (iv)
2669-9 that make it feasible and affordable for public
2670-10 schools to install photovoltaic distributed renewable
2671-11 energy devices on their premises, including, but not
2672-12 limited to, those public schools subject to the
2673-13 prioritization provisions of this subparagraph. For
2674-14 the purposes of this item (iv):
2675-15 "Environmental Justice Community" shall have the
2676-16 same meaning set forth in the Agency's long-term
2677-17 renewable resources procurement plan;
2678-18 "Organization Unit", "Tier 1" and "Tier 2" shall
2679-19 have the meanings set forth for in Section 18-8.15 of
2680-20 the School Code;
2681-21 "Public schools" shall have the meaning set forth
2682-22 in Section 1-3 of the School Code and includes public
2683-23 institutions of higher education, as defined in the
2684-24 Board of Higher Education Act.
2685-25 (v) At least 5% from community-driven community
2686-26 solar projects intended to provide more direct and
2687-
2688-
2689-
2690-
2691-
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2693-
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2696- HB1056 Engrossed - 76 - LRB104 03146 SPS 13167 b
2697-1 tangible connection and benefits to the communities
2698-2 which they serve or in which they operate and,
2699-3 additionally, to increase the variety of community
2700-4 solar locations, models, and options in Illinois. As
2701-5 part of its long-term renewable resources procurement
2702-6 plan, the Agency shall develop selection criteria for
2703-7 projects participating in this category. Nothing in
2704-8 this Section shall preclude the Agency from creating a
2705-9 selection process that maximizes community ownership
2706-10 and community benefits in selecting projects to
2707-11 receive renewable energy credits. Selection criteria
2708-12 shall include:
2709-13 (1) community ownership or community
2710-14 wealth-building;
2711-15 (2) additional direct and indirect community
2712-16 benefit, beyond project participation as a
2713-17 subscriber, including, but not limited to,
2714-18 economic, environmental, social, cultural, and
2715-19 physical benefits;
2716-20 (3) meaningful involvement in project
2717-21 organization and development by community members
2718-22 or nonprofit organizations or public entities
2719-23 located in or serving the community;
2720-24 (4) engagement in project operations and
2721-25 management by nonprofit organizations, public
2722-26 entities, or community members; and
2723-
2724-
2725-
2726-
2727-
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2729-
2730-
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2732- HB1056 Engrossed - 77 - LRB104 03146 SPS 13167 b
2733-1 (5) whether a project is developed in response
2734-2 to a site-specific RFP developed by community
2735-3 members or a nonprofit organization or public
2736-4 entity located in or serving the community.
2737-5 Selection criteria may also prioritize projects
2738-6 that:
2739-7 (1) are developed in collaboration with or to
2740-8 provide complementary opportunities for the Clean
2741-9 Jobs Workforce Network Program, the Illinois
2742-10 Climate Works Preapprenticeship Program, the
2743-11 Returning Residents Clean Jobs Training Program,
2744-12 the Clean Energy Contractor Incubator Program, or
2745-13 the Clean Energy Primes Contractor Accelerator
2746-14 Program;
2747-15 (2) increase the diversity of locations of
2748-16 community solar projects in Illinois, including by
2749-17 locating in urban areas and population centers;
2750-18 (3) are located in Equity Investment Eligible
2751-19 Communities;
2752-20 (4) are not greenfield projects;
2753-21 (5) serve only local subscribers;
2754-22 (6) have a nameplate capacity that does not
2755-23 exceed 500 kW;
2756-24 (7) are developed by an equity eligible
2757-25 contractor; or
2758-26 (8) otherwise meaningfully advance the goals
2759-
2760-
2761-
2762-
2763-
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2765-
2766-
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2768- HB1056 Engrossed - 78 - LRB104 03146 SPS 13167 b
2769-1 of providing more direct and tangible connection
2770-2 and benefits to the communities which they serve
2771-3 or in which they operate and increasing the
2772-4 variety of community solar locations, models, and
2773-5 options in Illinois.
2774-6 For the purposes of this item (v):
2775-7 "Community" means a social unit in which people
2776-8 come together regularly to effect change; a social
2777-9 unit in which participants are marked by a cooperative
2778-10 spirit, a common purpose, or shared interests or
2779-11 characteristics; or a space understood by its
2780-12 residents to be delineated through geographic
2781-13 boundaries or landmarks.
2782-14 "Community benefit" means a range of services and
2783-15 activities that provide affirmative, economic,
2784-16 environmental, social, cultural, or physical value to
2785-17 a community; or a mechanism that enables economic
2786-18 development, high-quality employment, and education
2787-19 opportunities for local workers and residents, or
2788-20 formal monitoring and oversight structures such that
2789-21 community members may ensure that those services and
2790-22 activities respond to local knowledge and needs.
2791-23 "Community ownership" means an arrangement in
2792-24 which an electric generating facility is, or over time
2793-25 will be, in significant part, owned collectively by
2794-26 members of the community to which an electric
2795-
2796-
2797-
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2801-
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2804- HB1056 Engrossed - 79 - LRB104 03146 SPS 13167 b
2805-1 generating facility provides benefits; members of that
2806-2 community participate in decisions regarding the
2807-3 governance, operation, maintenance, and upgrades of
2808-4 and to that facility; and members of that community
2809-5 benefit from regular use of that facility.
2810-6 Terms and guidance within these criteria that are
2811-7 not defined in this item (v) shall be defined by the
2812-8 Agency, with stakeholder input, during the development
2813-9 of the Agency's long-term renewable resources
2814-10 procurement plan. The Agency shall develop regular
2815-11 opportunities for projects to submit applications for
2816-12 projects under this category, and develop selection
2817-13 criteria that gives preference to projects that better
2818-14 meet individual criteria as well as projects that
2819-15 address a higher number of criteria.
2820-16 (vi) At least 10% from distributed renewable
2821-17 energy generation devices, which includes distributed
2822-18 renewable energy devices with a nameplate capacity
2823-19 under 5,000 kilowatts or photovoltaic community
2824-20 renewable generation projects, from applicants that
2825-21 are equity eligible contractors. The Agency may create
2826-22 subcategories within this category to account for the
2827-23 differences between project size and type. The Agency
2828-24 shall propose to increase the percentage in this item
2829-25 (vi) over time to 40% based on factors, including, but
2830-26 not limited to, the number of equity eligible
2831-
2832-
2833-
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2837-
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2840- HB1056 Engrossed - 80 - LRB104 03146 SPS 13167 b
2841-1 contractors and capacity used in this item (vi) in
2842-2 previous delivery years.
2843-3 The Agency shall propose a payment structure for
2844-4 contracts executed pursuant to this paragraph under
2845-5 which, upon a demonstration of qualification or need,
2846-6 applicant firms are advanced capital disbursed after
2847-7 contract execution but before the contracted project's
2848-8 energization. The amount or percentage of capital
2849-9 advanced prior to project energization shall be
2850-10 sufficient to both cover any increase in development
2851-11 costs resulting from prevailing wage requirements or
2852-12 project-labor agreements, and designed to overcome
2853-13 barriers in access to capital faced by equity eligible
2854-14 contractors. The amount or percentage of advanced
2855-15 capital may vary by subcategory within this category
2856-16 and by an applicant's demonstration of need, with such
2857-17 levels to be established through the Long-Term
2858-18 Renewable Resources Procurement Plan authorized under
2859-19 subparagraph (A) of paragraph (1) of subsection (c) of
2860-20 this Section.
2861-21 Contracts developed featuring capital advanced
2862-22 prior to a project's energization shall feature
2863-23 provisions to ensure both the successful development
2864-24 of applicant projects and the delivery of the
2865-25 renewable energy credits for the full term of the
2866-26 contract, including ongoing collateral requirements
2867-
2868-
2869-
2870-
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2873-
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2876- HB1056 Engrossed - 81 - LRB104 03146 SPS 13167 b
2877-1 and other provisions deemed necessary by the Agency,
2878-2 and may include energization timelines longer than for
2879-3 comparable project types. The percentage or amount of
2880-4 capital advanced prior to project energization shall
2881-5 not operate to increase the overall contract value,
2882-6 however contracts executed under this subparagraph may
2883-7 feature renewable energy credit prices higher than
2884-8 those offered to similar projects participating in
2885-9 other categories. Capital advanced prior to
2886-10 energization shall serve to reduce the ratable
2887-11 payments made after energization under items (ii) and
2888-12 (iii) of subparagraph (L) or payments made for each
2889-13 renewable energy credit delivery under item (iv) of
2890-14 subparagraph (L).
2891-15 (vii) The remaining capacity shall be allocated by
2892-16 the Agency in order to respond to market demand. The
2893-17 Agency shall allocate any discretionary capacity prior
2894-18 to the beginning of each delivery year.
2895-19 To the extent there is uncontracted capacity from any
2896-20 block in any of categories (i) through (vi) at the end of a
2897-21 delivery year, the Agency shall redistribute that capacity
2898-22 to one or more other categories giving priority to
2899-23 categories with projects on a waitlist. The redistributed
2900-24 capacity shall be added to the annual capacity in the
2901-25 subsequent delivery year, and the price for renewable
2902-26 energy credits shall be the price for the new delivery
2903-
2904-
2905-
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2909-
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2912- HB1056 Engrossed - 82 - LRB104 03146 SPS 13167 b
2913-1 year. Redistributed capacity shall not be considered
2914-2 redistributed when determining whether the goals in this
2915-3 subsection (K) have been met.
2916-4 Notwithstanding anything to the contrary, as the
2917-5 Agency increases the capacity in item (vi) to 40% over
2918-6 time, the Agency may reduce the capacity of items (i)
2919-7 through (v) proportionate to the capacity of the
2920-8 categories of projects in item (vi), to achieve a balance
2921-9 of project types.
2922-10 The Adjustable Block program shall be designed to
2923-11 ensure that renewable energy credits are procured from
2924-12 projects in diverse locations and are not concentrated in
2925-13 a few regional areas.
2926-14 (L) Notwithstanding provisions for advancing capital
2927-15 prior to project energization found in item (vi) of
2928-16 subparagraph (K), the procurement of photovoltaic
2929-17 renewable energy credits under items (i) through (vi) of
2930-18 subparagraph (K) of this paragraph (1) shall otherwise be
2931-19 subject to the following contract and payment terms:
2932-20 (i) (Blank).
2933-21 (ii) For those renewable energy credits that
2934-22 qualify and are procured under item (i) of
2935-23 subparagraph (K) of this paragraph (1), and any
2936-24 similar category projects that are procured under item
2937-25 (vi) of subparagraph (K) of this paragraph (1) that
2938-26 qualify and are procured under item (vi), the contract
2939-
2940-
2941-
2942-
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2944- HB1056 Engrossed - 82 - LRB104 03146 SPS 13167 b
2945-
2946-
2947-HB1056 Engrossed- 83 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 83 - LRB104 03146 SPS 13167 b
2948- HB1056 Engrossed - 83 - LRB104 03146 SPS 13167 b
2949-1 length shall be 15 years. The renewable energy credit
2950-2 delivery contract value shall be paid in full, based
2951-3 on the estimated generation during the first 15 years
2952-4 of operation, by the contracting utilities at the time
2953-5 that the facility producing the renewable energy
2954-6 credits is interconnected at the distribution system
2955-7 level of the utility and verified as energized and
2956-8 compliant by the Program Administrator. The electric
2957-9 utility shall receive and retire all renewable energy
2958-10 credits generated by the project for the first 15
2959-11 years of operation. Renewable energy credits generated
2960-12 by the project thereafter shall not be transferred
2961-13 under the renewable energy credit delivery contract
2962-14 with the counterparty electric utility.
2963-15 (iii) For those renewable energy credits that
2964-16 qualify and are procured under item (ii) and (v) of
2965-17 subparagraph (K) of this paragraph (1) and any like
2966-18 projects similar category that qualify and are
2967-19 procured under item (vi), the contract length shall be
2968-20 15 years. 15% of the renewable energy credit delivery
2969-21 contract value, based on the estimated generation
2970-22 during the first 15 years of operation, shall be paid
2971-23 by the contracting utilities at the time that the
2972-24 facility producing the renewable energy credits is
2973-25 interconnected at the distribution system level of the
2974-26 utility and verified as energized and compliant by the
2975-
2976-
2977-
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2981-
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2984- HB1056 Engrossed - 84 - LRB104 03146 SPS 13167 b
2985-1 Program Administrator. The remaining portion shall be
2986-2 paid ratably over the subsequent 6-year period. The
2987-3 electric utility shall receive and retire all
2988-4 renewable energy credits generated by the project for
2989-5 the first 15 years of operation. Renewable energy
2990-6 credits generated by the project thereafter shall not
2991-7 be transferred under the renewable energy credit
2992-8 delivery contract with the counterparty electric
2993-9 utility.
2994-10 (iv) For those renewable energy credits that
2995-11 qualify and are procured under items (iii) and (iv) of
2996-12 subparagraph (K) of this paragraph (1), and any like
2997-13 projects that qualify and are procured under item
2998-14 (vi), the renewable energy credit delivery contract
2999-15 length shall be 20 years and shall be paid over the
3000-16 delivery term, not to exceed during each delivery year
3001-17 the contract price multiplied by the estimated annual
3002-18 renewable energy credit generation amount. If
3003-19 generation of renewable energy credits during a
3004-20 delivery year exceeds the estimated annual generation
3005-21 amount, the excess renewable energy credits shall be
3006-22 carried forward to future delivery years and shall not
3007-23 expire during the delivery term. If generation of
3008-24 renewable energy credits during a delivery year,
3009-25 including carried forward excess renewable energy
3010-26 credits, if any, is less than the estimated annual
3011-
3012-
3013-
3014-
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3016- HB1056 Engrossed - 84 - LRB104 03146 SPS 13167 b
3017-
3018-
3019-HB1056 Engrossed- 85 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 85 - LRB104 03146 SPS 13167 b
3020- HB1056 Engrossed - 85 - LRB104 03146 SPS 13167 b
3021-1 generation amount, payments during such delivery year
3022-2 will not exceed the quantity generated plus the
3023-3 quantity carried forward multiplied by the contract
3024-4 price. The electric utility shall receive all
3025-5 renewable energy credits generated by the project
3026-6 during the first 20 years of operation and retire all
3027-7 renewable energy credits paid for under this item (iv)
3028-8 and return at the end of the delivery term all
3029-9 renewable energy credits that were not paid for.
3030-10 Renewable energy credits generated by the project
3031-11 thereafter shall not be transferred under the
3032-12 renewable energy credit delivery contract with the
3033-13 counterparty electric utility. Notwithstanding the
3034-14 preceding, for those projects participating under item
3035-15 (iii) of subparagraph (K), the contract price for a
3036-16 delivery year shall be based on subscription levels as
3037-17 measured on the higher of the first business day of the
3038-18 delivery year or the first business day 6 months after
3039-19 the first business day of the delivery year.
3040-20 Subscription of 90% of nameplate capacity or greater
3041-21 shall be deemed to be fully subscribed for the
3042-22 purposes of this item (iv). For projects receiving a
3043-23 20-year delivery contract, REC prices shall be
3044-24 adjusted downward for consistency with the incentive
3045-25 levels previously determined to be necessary to
3046-26 support projects under 15-year delivery contracts,
3047-
3048-
3049-
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3053-
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3056- HB1056 Engrossed - 86 - LRB104 03146 SPS 13167 b
3057-1 taking into consideration any additional new
3058-2 requirements placed on the projects, including, but
3059-3 not limited to, labor standards.
3060-4 (v) Each contract shall include provisions to
3061-5 ensure the delivery of the estimated quantity of
3062-6 renewable energy credits and ongoing collateral
3063-7 requirements and other provisions deemed appropriate
3064-8 by the Agency.
3065-9 (vi) The utility shall be the counterparty to the
3066-10 contracts executed under this subparagraph (L) that
3067-11 are approved by the Commission under the process
3068-12 described in Section 16-111.5 of the Public Utilities
3069-13 Act. No contract shall be executed for an amount that
3070-14 is less than one renewable energy credit per year.
3071-15 (vii) If, at any time, approved applications for
3072-16 the Adjustable Block program exceed funds collected by
3073-17 the electric utility or would cause the Agency to
3074-18 exceed the limitation described in subparagraph (E) of
3075-19 this paragraph (1) on the amount of renewable energy
3076-20 resources that may be procured, then the Agency may
3077-21 consider future uncommitted funds to be reserved for
3078-22 these contracts on a first-come, first-served basis.
3079-23 (viii) Nothing in this Section shall require the
3080-24 utility to advance any payment or pay any amounts that
3081-25 exceed the actual amount of revenues anticipated to be
3082-26 collected by the utility under paragraph (6) of this
3083-
3084-
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3089-
3090-
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3092- HB1056 Engrossed - 87 - LRB104 03146 SPS 13167 b
3093-1 subsection (c) and subsection (k) of Section 16-108 of
3094-2 the Public Utilities Act inclusive of eligible funds
3095-3 collected in prior years and alternative compliance
3096-4 payments for use by the utility.
3097-5 (ix) Notwithstanding other requirements of this
3098-6 subparagraph (L), no modification shall be required to
3099-7 Adjustable Block program contracts if they were
3100-8 already executed prior to the establishment, approval,
3101-9 and implementation of new contract forms as a result
3102-10 of this amendatory Act of the 102nd General Assembly.
3103-11 (x) Contracts may be assignable, but only to
3104-12 entities first deemed by the Agency to have met
3105-13 program terms and requirements applicable to direct
3106-14 program participation. In developing contracts for the
3107-15 delivery of renewable energy credits, the Agency shall
3108-16 be permitted to establish fees applicable to each
3109-17 contract assignment.
3110-18 (M) The Agency shall be authorized to retain one or
3111-19 more experts or expert consulting firms to develop,
3112-20 administer, implement, operate, and evaluate the
3113-21 Adjustable Block program described in subparagraph (K) of
3114-22 this paragraph (1), and the Agency shall retain the
3115-23 consultant or consultants in the same manner, to the
3116-24 extent practicable, as the Agency retains others to
3117-25 administer provisions of this Act, including, but not
3118-26 limited to, the procurement administrator. The selection
3119-
3120-
3121-
3122-
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3125-
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3128- HB1056 Engrossed - 88 - LRB104 03146 SPS 13167 b
3129-1 of experts and expert consulting firms and the procurement
3130-2 process described in this subparagraph (M) are exempt from
3131-3 the requirements of Section 20-10 of the Illinois
3132-4 Procurement Code, under Section 20-10 of that Code. The
3133-5 Agency shall strive to minimize administrative expenses in
3134-6 the implementation of the Adjustable Block program.
3135-7 The Program Administrator may charge application fees
3136-8 to participating firms to cover the cost of program
3137-9 administration. Any application fee amounts shall
3138-10 initially be determined through the long-term renewable
3139-11 resources procurement plan, and modifications to any
3140-12 application fee that deviate more than 25% from the
3141-13 Commission's approved value must be approved by the
3142-14 Commission as a long-term plan revision under Section
3143-15 16-111.5 of the Public Utilities Act. The Agency shall
3144-16 consider stakeholder feedback when making adjustments to
3145-17 application fees and shall notify stakeholders in advance
3146-18 of any planned changes.
3147-19 In addition to covering the costs of program
3148-20 administration, the Agency, in conjunction with its
3149-21 Program Administrator, may also use the proceeds of such
3150-22 fees charged to participating firms to support public
3151-23 education and ongoing regional and national coordination
3152-24 with nonprofit organizations, public bodies, and others
3153-25 engaged in the implementation of renewable energy
3154-26 incentive programs or similar initiatives. This work may
3155-
3156-
3157-
3158-
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3161-
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3164- HB1056 Engrossed - 89 - LRB104 03146 SPS 13167 b
3165-1 include developing papers and reports, hosting regional
3166-2 and national conferences, and other work deemed necessary
3167-3 by the Agency to position the State of Illinois as a
3168-4 national leader in renewable energy incentive program
3169-5 development and administration.
3170-6 The Agency and its consultant or consultants shall
3171-7 monitor block activity, share program activity with
3172-8 stakeholders and conduct quarterly meetings to discuss
3173-9 program activity and market conditions. If necessary, the
3174-10 Agency may make prospective administrative adjustments to
3175-11 the Adjustable Block program design, such as making
3176-12 adjustments to purchase prices as necessary to achieve the
3177-13 goals of this subsection (c). Program modifications to any
3178-14 block price that do not deviate from the Commission's
3179-15 approved value by more than 10% shall take effect
3180-16 immediately and are not subject to Commission review and
3181-17 approval. Program modifications to any block price that
3182-18 deviate more than 10% from the Commission's approved value
3183-19 must be approved by the Commission as a long-term plan
3184-20 amendment under Section 16-111.5 of the Public Utilities
3185-21 Act. The Agency shall consider stakeholder feedback when
3186-22 making adjustments to the Adjustable Block design and
3187-23 shall notify stakeholders in advance of any planned
3188-24 changes.
3189-25 The Agency and its program administrators for both the
3190-26 Adjustable Block program and the Illinois Solar for All
3191-
3192-
3193-
3194-
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3200- HB1056 Engrossed - 90 - LRB104 03146 SPS 13167 b
3201-1 Program, consistent with the requirements of this
3202-2 subsection (c) and subsection (b) of Section 1-56 of this
3203-3 Act, shall propose the Adjustable Block program terms,
3204-4 conditions, and requirements, including the prices to be
3205-5 paid for renewable energy credits, where applicable, and
3206-6 requirements applicable to participating entities and
3207-7 project applications, through the development, review, and
3208-8 approval of the Agency's long-term renewable resources
3209-9 procurement plan described in this subsection (c) and
3210-10 paragraph (5) of subsection (b) of Section 16-111.5 of the
3211-11 Public Utilities Act. Terms, conditions, and requirements
3212-12 for program participation shall include the following:
3213-13 (i) The Agency shall establish a registration
3214-14 process for entities seeking to qualify for
3215-15 program-administered incentive funding and establish
3216-16 baseline qualifications for vendor approval. The
3217-17 Agency must maintain a list of approved entities on
3218-18 each program's website, and may revoke a vendor's
3219-19 ability to receive program-administered incentive
3220-20 funding status upon a determination that the vendor
3221-21 failed to comply with contract terms, the law, or
3222-22 other program requirements.
3223-23 (ii) The Agency shall establish program
3224-24 requirements and minimum contract terms to ensure
3225-25 projects are properly installed and produce their
3226-26 expected amounts of energy. Program requirements may
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3237-1 include on-site inspections and photo documentation of
3238-2 projects under construction. The Agency may require
3239-3 repairs, alterations, or additions to remedy any
3240-4 material deficiencies discovered. Vendors who have a
3241-5 disproportionately high number of deficient systems
3242-6 may lose their eligibility to continue to receive
3243-7 State-administered incentive funding through Agency
3244-8 programs and procurements.
3245-9 (iii) To discourage deceptive marketing or other
3246-10 bad faith business practices, the Agency may require
3247-11 direct program participants, including agents
3248-12 operating on their behalf, to provide standardized
3249-13 disclosures to a customer prior to that customer's
3250-14 execution of a contract for the development of a
3251-15 distributed generation system or a subscription to a
3252-16 community solar project.
3253-17 (iv) The Agency shall establish one or multiple
3254-18 Consumer Complaints Centers to accept complaints
3255-19 regarding businesses that participate in, or otherwise
3256-20 benefit from, State-administered incentive funding
3257-21 through Agency-administered programs. The Agency shall
3258-22 maintain a public database of complaints with any
3259-23 confidential or particularly sensitive information
3260-24 redacted from public entries.
3261-25 (v) Through a filing in the proceeding for the
3262-26 approval of its long-term renewable energy resources
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3273-1 procurement plan, the Agency shall provide an annual
3274-2 written report to the Illinois Commerce Commission
3275-3 documenting the frequency and nature of complaints and
3276-4 any enforcement actions taken in response to those
3277-5 complaints.
3278-6 (vi) The Agency shall schedule regular meetings
3279-7 with representatives of the Office of the Attorney
3280-8 General, the Illinois Commerce Commission, consumer
3281-9 protection groups, and other interested stakeholders
3282-10 to share relevant information about consumer
3283-11 protection, project compliance, and complaints
3284-12 received.
3285-13 (vii) To the extent that complaints received
3286-14 implicate the jurisdiction of the Office of the
3287-15 Attorney General, the Illinois Commerce Commission, or
3288-16 local, State, or federal law enforcement, the Agency
3289-17 shall also refer complaints to those entities as
3290-18 appropriate.
3291-19 (N) The Agency shall establish the terms, conditions,
3292-20 and program requirements for photovoltaic community
3293-21 renewable generation projects with a goal to expand access
3294-22 to a broader group of energy consumers, to ensure robust
3295-23 participation opportunities for residential and small
3296-24 commercial customers and those who cannot install
3297-25 renewable energy on their own properties. Subject to
3298-26 reasonable limitations, any plan approved by the
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3309-1 Commission shall allow subscriptions to community
3310-2 renewable generation projects to be portable and
3311-3 transferable. For purposes of this subparagraph (N),
3312-4 "portable" means that subscriptions may be retained by the
3313-5 subscriber even if the subscriber relocates or changes its
3314-6 address within the same utility service territory; and
3315-7 "transferable" means that a subscriber may assign or sell
3316-8 subscriptions to another person within the same utility
3317-9 service territory.
3318-10 Through the development of its long-term renewable
3319-11 resources procurement plan, the Agency may consider
3320-12 whether community renewable generation projects utilizing
3321-13 technologies other than photovoltaics should be supported
3322-14 through State-administered incentive funding, and may
3323-15 issue requests for information to gauge market demand.
3324-16 Electric utilities shall provide a monetary credit to
3325-17 a subscriber's subsequent bill for service for the
3326-18 proportional output of a community renewable generation
3327-19 project attributable to that subscriber as specified in
3328-20 Section 16-107.5 of the Public Utilities Act.
3329-21 The Agency shall purchase renewable energy credits
3330-22 from subscribed shares of photovoltaic community renewable
3331-23 generation projects through the Adjustable Block program
3332-24 described in subparagraph (K) of this paragraph (1) or
3333-25 through the Illinois Solar for All Program described in
3334-26 Section 1-56 of this Act. The electric utility shall
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3345-1 purchase any unsubscribed energy from community renewable
3346-2 generation projects that are Qualifying Facilities ("QF")
3347-3 under the electric utility's tariff for purchasing the
3348-4 output from QFs under Public Utilities Regulatory Policies
3349-5 Act of 1978.
3350-6 The owners of and any subscribers to a community
3351-7 renewable generation project shall not be considered
3352-8 public utilities or alternative retail electricity
3353-9 suppliers under the Public Utilities Act solely as a
3354-10 result of their interest in or subscription to a community
3355-11 renewable generation project and shall not be required to
3356-12 become an alternative retail electric supplier by
3357-13 participating in a community renewable generation project
3358-14 with a public utility.
3359-15 (O) For the delivery year beginning June 1, 2018, the
3360-16 long-term renewable resources procurement plan required by
3361-17 this subsection (c) shall provide for the Agency to
3362-18 procure contracts to continue offering the Illinois Solar
3363-19 for All Program described in subsection (b) of Section
3364-20 1-56 of this Act, and the contracts approved by the
3365-21 Commission shall be executed by the utilities that are
3366-22 subject to this subsection (c). The long-term renewable
3367-23 resources procurement plan shall allocate up to
3368-24 $50,000,000 per delivery year to fund the programs, and
3369-25 the plan shall determine the amount of funding to be
3370-26 apportioned to the programs identified in subsection (b)
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3381-1 of Section 1-56 of this Act; provided that for the
3382-2 delivery years beginning June 1, 2021, June 1, 2022, and
3383-3 June 1, 2023, the long-term renewable resources
3384-4 procurement plan may average the annual budgets over a
3385-5 3-year period to account for program ramp-up. For the
3386-6 delivery years beginning June 1, 2021, June 1, 2024, June
3387-7 1, 2027, and June 1, 2030 and additional $10,000,000 shall
3388-8 be provided to the Department of Commerce and Economic
3389-9 Opportunity to implement the workforce development
3390-10 programs and reporting as outlined in Section 16-108.12 of
3391-11 the Public Utilities Act. In making the determinations
3392-12 required under this subparagraph (O), the Commission shall
3393-13 consider the experience and performance under the programs
3394-14 and any evaluation reports. The Commission shall also
3395-15 provide for an independent evaluation of those programs on
3396-16 a periodic basis that are funded under this subparagraph
3397-17 (O).
3398-18 (P) All programs and procurements under this
3399-19 subsection (c) shall be designed to encourage
3400-20 participating projects to use a diverse and equitable
3401-21 workforce and a diverse set of contractors, including
3402-22 minority-owned businesses, disadvantaged businesses,
3403-23 trade unions, graduates of any workforce training programs
3404-24 administered under this Act, and small businesses.
3405-25 The Agency shall develop a method to optimize
3406-26 procurement of renewable energy credits from proposed
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3417-1 utility-scale projects that are located in communities
3418-2 eligible to receive Energy Transition Community Grants
3419-3 pursuant to Section 10-20 of the Energy Community
3420-4 Reinvestment Act. If this requirement conflicts with other
3421-5 provisions of law or the Agency determines that full
3422-6 compliance with the requirements of this subparagraph (P)
3423-7 would be unreasonably costly or administratively
3424-8 impractical, the Agency is to propose alternative
3425-9 approaches to achieve development of renewable energy
3426-10 resources in communities eligible to receive Energy
3427-11 Transition Community Grants pursuant to Section 10-20 of
3428-12 the Energy Community Reinvestment Act or seek an exemption
3429-13 from this requirement from the Commission.
3430-14 (Q) Each facility listed in subitems (i) through (ix)
3431-15 of item (1) of this subparagraph (Q) for which a renewable
3432-16 energy credit delivery contract is signed after the
3433-17 effective date of this amendatory Act of the 102nd General
3434-18 Assembly is subject to the following requirements through
3435-19 the Agency's long-term renewable resources procurement
3436-20 plan:
3437-21 (1) Each facility shall be subject to the
3438-22 prevailing wage requirements included in the
3439-23 Prevailing Wage Act. The Agency shall require
3440-24 verification that all construction performed on the
3441-25 facility by the renewable energy credit delivery
3442-26 contract holder, its contractors, or its
3443-
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3453-1 subcontractors relating to construction of the
3454-2 facility is performed by construction employees
3455-3 receiving an amount for that work equal to or greater
3456-4 than the general prevailing rate, as that term is
3457-5 defined in Section 3 of the Prevailing Wage Act. For
3458-6 purposes of this item (1), "house of worship" means
3459-7 property that is both (1) used exclusively by a
3460-8 religious society or body of persons as a place for
3461-9 religious exercise or religious worship and (2)
3462-10 recognized as exempt from taxation pursuant to Section
3463-11 15-40 of the Property Tax Code. This item (1) shall
3464-12 apply to any the following:
3465-13 (i) all new utility-scale wind projects;
3466-14 (ii) all new utility-scale photovoltaic
3467-15 projects and repowered wind projects;
3468-16 (iii) all new brownfield photovoltaic
3469-17 projects;
3470-18 (iv) all new photovoltaic community renewable
3471-19 energy facilities that qualify for item (iii) of
3472-20 subparagraph (K) of this paragraph (1);
3473-21 (v) all new community driven community
3474-22 photovoltaic projects that qualify for item (v) of
3475-23 subparagraph (K) of this paragraph (1);
3476-24 (vi) all new photovoltaic projects on public
3477-25 school land that qualify for item (iv) of
3478-26 subparagraph (K) of this paragraph (1);
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3489-1 (vii) all new photovoltaic distributed
3490-2 renewable energy generation devices that (1)
3491-3 qualify for item (i) of subparagraph (K) of this
3492-4 paragraph (1); (2) are not projects that serve
3493-5 single-family or multi-family residential
3494-6 buildings; and (3) are not houses of worship where
3495-7 the aggregate capacity including colocated
3496-8 collocated projects would not exceed 100
3497-9 kilowatts;
3498-10 (viii) all new photovoltaic distributed
3499-11 renewable energy generation devices that (1)
3500-12 qualify for item (ii) of subparagraph (K) of this
3501-13 paragraph (1); (2) are not projects that serve
3502-14 single-family or multi-family residential
3503-15 buildings; and (3) are not houses of worship where
3504-16 the aggregate capacity including colocated
3505-17 collocated projects would not exceed 100
3506-18 kilowatts;
3507-19 (ix) all new, modernized, or retooled
3508-20 hydropower facilities.
3509-21 (2) Renewable energy credits procured from new
3510-22 utility-scale wind projects, new utility-scale solar
3511-23 projects, new brownfield solar projects, repowered
3512-24 wind projects, and retooled hydropower facilities
3513-25 pursuant to Agency procurement events occurring after
3514-26 the effective date of this amendatory Act of the 102nd
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3525-1 General Assembly must be from facilities built by
3526-2 general contractors that must enter into a project
3527-3 labor agreement, as defined by this Act, prior to
3528-4 construction. The project labor agreement shall be
3529-5 filed with the Director in accordance with procedures
3530-6 established by the Agency through its long-term
3531-7 renewable resources procurement plan. Any information
3532-8 submitted to the Agency in this item (2) shall be
3533-9 considered commercially sensitive information. At a
3534-10 minimum, the project labor agreement must provide the
3535-11 names, addresses, and occupations of the owner of the
3536-12 plant and the individuals representing the labor
3537-13 organization employees participating in the project
3538-14 labor agreement consistent with the Project Labor
3539-15 Agreements Act. The agreement must also specify the
3540-16 terms and conditions as defined by this Act.
3541-17 (3) It is the intent of this Section to ensure that
3542-18 economic development occurs across Illinois
3543-19 communities, that emerging businesses may grow, and
3544-20 that there is improved access to the clean energy
3545-21 economy by persons who have greater economic burdens
3546-22 to success. The Agency shall take into consideration
3547-23 the unique cost of compliance of this subparagraph (Q)
3548-24 that might be borne by equity eligible contractors,
3549-25 shall include such costs when determining the price of
3550-26 renewable energy credits in the Adjustable Block
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3561-1 program, and shall take such costs into consideration
3562-2 in a nondiscriminatory manner when comparing bids for
3563-3 competitive procurements. The Agency shall consider
3564-4 costs associated with compliance whether in the
3565-5 development, financing, or construction of projects.
3566-6 The Agency shall periodically review the assumptions
3567-7 in these costs and may adjust prices, in compliance
3568-8 with subparagraph (M) of this paragraph (1).
3569-9 (R) In its long-term renewable resources procurement
3570-10 plan, the Agency shall establish a self-direct renewable
3571-11 portfolio standard compliance program for eligible
3572-12 self-direct customers that purchase renewable energy
3573-13 credits from utility-scale wind and solar projects through
3574-14 long-term agreements for purchase of renewable energy
3575-15 credits as described in this Section. Such long-term
3576-16 agreements may include the purchase of energy or other
3577-17 products on a physical or financial basis and may involve
3578-18 an alternative retail electric supplier as defined in
3579-19 Section 16-102 of the Public Utilities Act. This program
3580-20 shall take effect in the delivery year commencing June 1,
3581-21 2023.
3582-22 (1) For the purposes of this subparagraph:
3583-23 "Eligible self-direct customer" means any retail
3584-24 customers of an electric utility that serves 3,000,000
3585-25 or more retail customers in the State and whose total
3586-26 highest 30-minute demand was more than 10,000
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3597-1 kilowatts, or any retail customers of an electric
3598-2 utility that serves less than 3,000,000 retail
3599-3 customers but more than 500,000 retail customers in
3600-4 the State and whose total highest 15-minute demand was
3601-5 more than 10,000 kilowatts.
3602-6 "Retail customer" has the meaning set forth in
3603-7 Section 16-102 of the Public Utilities Act and
3604-8 multiple retail customer accounts under the same
3605-9 corporate parent may aggregate their account demands
3606-10 to meet the 10,000 kilowatt threshold. The criteria
3607-11 for determining whether this subparagraph is
3608-12 applicable to a retail customer shall be based on the
3609-13 12 consecutive billing periods prior to the start of
3610-14 the year in which the application is filed.
3611-15 (2) For renewable energy credits to count toward
3612-16 the self-direct renewable portfolio standard
3613-17 compliance program, they must:
3614-18 (i) qualify as renewable energy credits as
3615-19 defined in Section 1-10 of this Act;
3616-20 (ii) be sourced from one or more renewable
3617-21 energy generating facilities that comply with the
3618-22 geographic requirements as set forth in
3619-23 subparagraph (I) of paragraph (1) of subsection
3620-24 (c) as interpreted through the Agency's long-term
3621-25 renewable resources procurement plan, or, where
3622-26 applicable, the geographic requirements that
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3633-1 governed utility-scale renewable energy credits at
3634-2 the time the eligible self-direct customer entered
3635-3 into the applicable renewable energy credit
3636-4 purchase agreement;
3637-5 (iii) be procured through long-term contracts
3638-6 with term lengths of at least 10 years either
3639-7 directly with the renewable energy generating
3640-8 facility or through a bundled power purchase
3641-9 agreement, a virtual power purchase agreement, an
3642-10 agreement between the renewable generating
3643-11 facility, an alternative retail electric supplier,
3644-12 and the customer, or such other structure as is
3645-13 permissible under this subparagraph (R);
3646-14 (iv) be equivalent in volume to at least 40%
3647-15 of the eligible self-direct customer's usage,
3648-16 determined annually by the eligible self-direct
3649-17 customer's usage during the previous delivery
3650-18 year, measured to the nearest megawatt-hour;
3651-19 (v) be retired by or on behalf of the large
3652-20 energy customer;
3653-21 (vi) be sourced from new utility-scale wind
3654-22 projects or new utility-scale solar projects; and
3655-23 (vii) if the contracts for renewable energy
3656-24 credits are entered into after the effective date
3657-25 of this amendatory Act of the 102nd General
3658-26 Assembly, the new utility-scale wind projects or
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3669-1 new utility-scale solar projects must comply with
3670-2 the requirements established in subparagraphs (P)
3671-3 and (Q) of paragraph (1) of this subsection (c)
3672-4 and subsection (c-10).
3673-5 (3) The self-direct renewable portfolio standard
3674-6 compliance program shall be designed to allow eligible
3675-7 self-direct customers to procure new renewable energy
3676-8 credits from new utility-scale wind projects or new
3677-9 utility-scale photovoltaic projects. The Agency shall
3678-10 annually determine the amount of utility-scale
3679-11 renewable energy credits it will include each year
3680-12 from the self-direct renewable portfolio standard
3681-13 compliance program, subject to receiving qualifying
3682-14 applications. In making this determination, the Agency
3683-15 shall evaluate publicly available analyses and studies
3684-16 of the potential market size for utility-scale
3685-17 renewable energy long-term purchase agreements by
3686-18 commercial and industrial energy customers and make
3687-19 that report publicly available. If demand for
3688-20 participation in the self-direct renewable portfolio
3689-21 standard compliance program exceeds availability, the
3690-22 Agency shall ensure participation is evenly split
3691-23 between commercial and industrial users to the extent
3692-24 there is sufficient demand from both customer classes.
3693-25 Each renewable energy credit procured pursuant to this
3694-26 subparagraph (R) by a self-direct customer shall
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3705-1 reduce the total volume of renewable energy credits
3706-2 the Agency is otherwise required to procure from new
3707-3 utility-scale projects pursuant to subparagraph (C) of
3708-4 paragraph (1) of this subsection (c) on behalf of
3709-5 contracting utilities where the eligible self-direct
3710-6 customer is located. The self-direct customer shall
3711-7 file an annual compliance report with the Agency
3712-8 pursuant to terms established by the Agency through
3713-9 its long-term renewable resources procurement plan to
3714-10 be eligible for participation in this program.
3715-11 Customers must provide the Agency with their most
3716-12 recent electricity billing statements or other
3717-13 information deemed necessary by the Agency to
3718-14 demonstrate they are an eligible self-direct customer.
3719-15 (4) The Commission shall approve a reduction in
3720-16 the volumetric charges collected pursuant to Section
3721-17 16-108 of the Public Utilities Act for approved
3722-18 eligible self-direct customers equivalent to the
3723-19 anticipated cost of renewable energy credit deliveries
3724-20 under contracts for new utility-scale wind and new
3725-21 utility-scale solar entered for each delivery year
3726-22 after the large energy customer begins retiring
3727-23 eligible new utility scale renewable energy credits
3728-24 for self-compliance. The self-direct credit amount
3729-25 shall be determined annually and is equal to the
3730-26 estimated portion of the cost authorized by
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3741-1 subparagraph (E) of paragraph (1) of this subsection
3742-2 (c) that supported the annual procurement of
3743-3 utility-scale renewable energy credits in the prior
3744-4 delivery year using a methodology described in the
3745-5 long-term renewable resources procurement plan,
3746-6 expressed on a per kilowatthour basis, and does not
3747-7 include (i) costs associated with any contracts
3748-8 entered into before the delivery year in which the
3749-9 customer files the initial compliance report to be
3750-10 eligible for participation in the self-direct program,
3751-11 and (ii) costs associated with procuring renewable
3752-12 energy credits through existing and future contracts
3753-13 through the Adjustable Block Program, subsection (c-5)
3754-14 of this Section 1-75, and the Solar for All Program.
3755-15 The Agency shall assist the Commission in determining
3756-16 the current and future costs. The Agency must
3757-17 determine the self-direct credit amount for new and
3758-18 existing eligible self-direct customers and submit
3759-19 this to the Commission in an annual compliance filing.
3760-20 The Commission must approve the self-direct credit
3761-21 amount by June 1, 2023 and June 1 of each delivery year
3762-22 thereafter.
3763-23 (5) Customers described in this subparagraph (R)
3764-24 shall apply, on a form developed by the Agency, to the
3765-25 Agency to be designated as a self-direct eligible
3766-26 customer. Once the Agency determines that a
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3773-
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3777-1 self-direct customer is eligible for participation in
3778-2 the program, the self-direct customer will remain
3779-3 eligible until the end of the term of the contract.
3780-4 Thereafter, application may be made not less than 12
3781-5 months before the filing date of the long-term
3782-6 renewable resources procurement plan described in this
3783-7 Act. At a minimum, such application shall contain the
3784-8 following:
3785-9 (i) the customer's certification that, at the
3786-10 time of the customer's application, the customer
3787-11 qualifies to be a self-direct eligible customer,
3788-12 including documents demonstrating that
3789-13 qualification;
3790-14 (ii) the customer's certification that the
3791-15 customer has entered into or will enter into by
3792-16 the beginning of the applicable procurement year,
3793-17 one or more bilateral contracts for new wind
3794-18 projects or new photovoltaic projects, including
3795-19 supporting documentation;
3796-20 (iii) certification that the contract or
3797-21 contracts for new renewable energy resources are
3798-22 long-term contracts with term lengths of at least
3799-23 10 years, including supporting documentation;
3800-24 (iv) certification of the quantities of
3801-25 renewable energy credits that the customer will
3802-26 purchase each year under such contract or
3803-
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3813-1 contracts, including supporting documentation;
3814-2 (v) proof that the contract is sufficient to
3815-3 produce renewable energy credits to be equivalent
3816-4 in volume to at least 40% of the large energy
3817-5 customer's usage from the previous delivery year,
3818-6 measured to the nearest megawatt-hour; and
3819-7 (vi) certification that the customer intends
3820-8 to maintain the contract for the duration of the
3821-9 length of the contract.
3822-10 (6) If a customer receives the self-direct credit
3823-11 but fails to properly procure and retire renewable
3824-12 energy credits as required under this subparagraph
3825-13 (R), the Commission, on petition from the Agency and
3826-14 after notice and hearing, may direct such customer's
3827-15 utility to recover the cost of the wrongfully received
3828-16 self-direct credits plus interest through an adder to
3829-17 charges assessed pursuant to Section 16-108 of the
3830-18 Public Utilities Act. Self-direct customers who
3831-19 knowingly fail to properly procure and retire
3832-20 renewable energy credits and do not notify the Agency
3833-21 are ineligible for continued participation in the
3834-22 self-direct renewable portfolio standard compliance
3835-23 program.
3836-24 (2) (Blank).
3837-25 (3) (Blank).
3838-26 (4) The electric utility shall retire all renewable
3839-
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3848- HB1056 Engrossed - 108 - LRB104 03146 SPS 13167 b
3849-1 energy credits used to comply with the standard.
3850-2 (5) Beginning with the 2010 delivery year and ending
3851-3 June 1, 2017, an electric utility subject to this
3852-4 subsection (c) shall apply the lesser of the maximum
3853-5 alternative compliance payment rate or the most recent
3854-6 estimated alternative compliance payment rate for its
3855-7 service territory for the corresponding compliance period,
3856-8 established pursuant to subsection (d) of Section 16-115D
3857-9 of the Public Utilities Act to its retail customers that
3858-10 take service pursuant to the electric utility's hourly
3859-11 pricing tariff or tariffs. The electric utility shall
3860-12 retain all amounts collected as a result of the
3861-13 application of the alternative compliance payment rate or
3862-14 rates to such customers, and, beginning in 2011, the
3863-15 utility shall include in the information provided under
3864-16 item (1) of subsection (d) of Section 16-111.5 of the
3865-17 Public Utilities Act the amounts collected under the
3866-18 alternative compliance payment rate or rates for the prior
3867-19 year ending May 31. Notwithstanding any limitation on the
3868-20 procurement of renewable energy resources imposed by item
3869-21 (2) of this subsection (c), the Agency shall increase its
3870-22 spending on the purchase of renewable energy resources to
3871-23 be procured by the electric utility for the next plan year
3872-24 by an amount equal to the amounts collected by the utility
3873-25 under the alternative compliance payment rate or rates in
3874-26 the prior year ending May 31.
3875-
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3884- HB1056 Engrossed - 109 - LRB104 03146 SPS 13167 b
3885-1 (6) The electric utility shall be entitled to recover
3886-2 all of its costs associated with the procurement of
3887-3 renewable energy credits under plans approved under this
3888-4 Section and Section 16-111.5 of the Public Utilities Act.
3889-5 These costs shall include associated reasonable expenses
3890-6 for implementing the procurement programs, including, but
3891-7 not limited to, the costs of administering and evaluating
3892-8 the Adjustable Block program, through an automatic
3893-9 adjustment clause tariff in accordance with subsection (k)
3894-10 of Section 16-108 of the Public Utilities Act.
3895-11 (7) Renewable energy credits procured from new
3896-12 photovoltaic projects or new distributed renewable energy
3897-13 generation devices under this Section after June 1, 2017
3898-14 (the effective date of Public Act 99-906) must be procured
3899-15 from devices installed by a qualified person in compliance
3900-16 with the requirements of Section 16-128A of the Public
3901-17 Utilities Act and any rules or regulations adopted
3902-18 thereunder.
3903-19 In meeting the renewable energy requirements of this
3904-20 subsection (c), to the extent feasible and consistent with
3905-21 State and federal law, the renewable energy credit
3906-22 procurements, Adjustable Block solar program, and
3907-23 community renewable generation program shall provide
3908-24 employment opportunities for all segments of the
3909-25 population and workforce, including minority-owned and
3910-26 female-owned business enterprises, and shall not,
3911-
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3920- HB1056 Engrossed - 110 - LRB104 03146 SPS 13167 b
3921-1 consistent with State and federal law, discriminate based
3922-2 on race or socioeconomic status.
3923-3 (c-5) Procurement of renewable energy credits from new
3924-4 renewable energy facilities installed at or adjacent to the
3925-5 sites of electric generating facilities that burn or burned
3926-6 coal as their primary fuel source.
3927-7 (1) In addition to the procurement of renewable energy
3928-8 credits pursuant to long-term renewable resources
3929-9 procurement plans in accordance with subsection (c) of
3930-10 this Section and Section 16-111.5 of the Public Utilities
3931-11 Act, the Agency shall conduct procurement events in
3932-12 accordance with this subsection (c-5) for the procurement
3933-13 by electric utilities that served more than 300,000 retail
3934-14 customers in this State as of January 1, 2019 of renewable
3935-15 energy credits from new renewable energy facilities to be
3936-16 installed at or adjacent to the sites of electric
3937-17 generating facilities that, as of January 1, 2016, burned
3938-18 coal as their primary fuel source and meet the other
3939-19 criteria specified in this subsection (c-5). For purposes
3940-20 of this subsection (c-5), "new renewable energy facility"
3941-21 means a new utility-scale solar project as defined in this
3942-22 Section 1-75. The renewable energy credits procured
3943-23 pursuant to this subsection (c-5) may be included or
3944-24 counted for purposes of compliance with the amounts of
3945-25 renewable energy credits required to be procured pursuant
3946-26 to subsection (c) of this Section to the extent that there
3947-
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3953-
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3956- HB1056 Engrossed - 111 - LRB104 03146 SPS 13167 b
3957-1 are otherwise shortfalls in compliance with such
3958-2 requirements. The procurement of renewable energy credits
3959-3 by electric utilities pursuant to this subsection (c-5)
3960-4 shall be funded solely by revenues collected from the Coal
3961-5 to Solar and Energy Storage Initiative Charge provided for
3962-6 in this subsection (c-5) and subsection (i-5) of Section
3963-7 16-108 of the Public Utilities Act, shall not be funded by
3964-8 revenues collected through any of the other funding
3965-9 mechanisms provided for in subsection (c) of this Section,
3966-10 and shall not be subject to the limitation imposed by
3967-11 subsection (c) on charges to retail customers for costs to
3968-12 procure renewable energy resources pursuant to subsection
3969-13 (c), and shall not be subject to any other requirements or
3970-14 limitations of subsection (c).
3971-15 (2) The Agency shall conduct 2 procurement events to
3972-16 select owners of electric generating facilities meeting
3973-17 the eligibility criteria specified in this subsection
3974-18 (c-5) to enter into long-term contracts to sell renewable
3975-19 energy credits to electric utilities serving more than
3976-20 300,000 retail customers in this State as of January 1,
3977-21 2019. The first procurement event shall be conducted no
3978-22 later than March 31, 2022, unless the Agency elects to
3979-23 delay it, until no later than May 1, 2022, due to its
3980-24 overall volume of work, and shall be to select owners of
3981-25 electric generating facilities located in this State and
3982-26 south of federal Interstate Highway 80 that meet the
3983-
3984-
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3989-
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3992- HB1056 Engrossed - 112 - LRB104 03146 SPS 13167 b
3993-1 eligibility criteria specified in this subsection (c-5).
3994-2 The second procurement event shall be conducted no sooner
3995-3 than September 30, 2022 and no later than October 31, 2022
3996-4 and shall be to select owners of electric generating
3997-5 facilities located anywhere in this State that meet the
3998-6 eligibility criteria specified in this subsection (c-5).
3999-7 The Agency shall establish and announce a time period,
4000-8 which shall begin no later than 30 days prior to the
4001-9 scheduled date for the procurement event, during which
4002-10 applicants may submit applications to be selected as
4003-11 suppliers of renewable energy credits pursuant to this
4004-12 subsection (c-5). The eligibility criteria for selection
4005-13 as a supplier of renewable energy credits pursuant to this
4006-14 subsection (c-5) shall be as follows:
4007-15 (A) The applicant owns an electric generating
4008-16 facility located in this State that: (i) as of January
4009-17 1, 2016, burned coal as its primary fuel to generate
4010-18 electricity; and (ii) has, or had prior to retirement,
4011-19 an electric generating capacity of at least 150
4012-20 megawatts. The electric generating facility can be
4013-21 either: (i) retired as of the date of the procurement
4014-22 event; or (ii) still operating as of the date of the
4015-23 procurement event.
4016-24 (B) The applicant is not (i) an electric
4017-25 cooperative as defined in Section 3-119 of the Public
4018-26 Utilities Act, or (ii) an entity described in
4019-
4020-
4021-
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4025-
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4028- HB1056 Engrossed - 113 - LRB104 03146 SPS 13167 b
4029-1 subsection (b)(1) of Section 3-105 of the Public
4030-2 Utilities Act, or an association or consortium of or
4031-3 an entity owned by entities described in (i) or (ii);
4032-4 and the coal-fueled electric generating facility was
4033-5 at one time owned, in whole or in part, by a public
4034-6 utility as defined in Section 3-105 of the Public
4035-7 Utilities Act.
4036-8 (C) If participating in the first procurement
4037-9 event, the applicant proposes and commits to construct
4038-10 and operate, at the site, and if necessary for
4039-11 sufficient space on property adjacent to the existing
4040-12 property, at which the electric generating facility
4041-13 identified in paragraph (A) is located: (i) a new
4042-14 renewable energy facility of at least 20 megawatts but
4043-15 no more than 100 megawatts of electric generating
4044-16 capacity, and (ii) an energy storage facility having a
4045-17 storage capacity equal to at least 2 megawatts and at
4046-18 most 10 megawatts. If participating in the second
4047-19 procurement event, the applicant proposes and commits
4048-20 to construct and operate, at the site, and if
4049-21 necessary for sufficient space on property adjacent to
4050-22 the existing property, at which the electric
4051-23 generating facility identified in paragraph (A) is
4052-24 located: (i) a new renewable energy facility of at
4053-25 least 5 megawatts but no more than 20 megawatts of
4054-26 electric generating capacity, and (ii) an energy
4055-
4056-
4057-
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4061-
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4064- HB1056 Engrossed - 114 - LRB104 03146 SPS 13167 b
4065-1 storage facility having a storage capacity equal to at
4066-2 least 0.5 megawatts and at most one megawatt.
4067-3 (D) The applicant agrees that the new renewable
4068-4 energy facility and the energy storage facility will
4069-5 be constructed or installed by a qualified entity or
4070-6 entities in compliance with the requirements of
4071-7 subsection (g) of Section 16-128A of the Public
4072-8 Utilities Act and any rules adopted thereunder.
4073-9 (E) The applicant agrees that personnel operating
4074-10 the new renewable energy facility and the energy
4075-11 storage facility will have the requisite skills,
4076-12 knowledge, training, experience, and competence, which
4077-13 may be demonstrated by completion or current
4078-14 participation and ultimate completion by employees of
4079-15 an accredited or otherwise recognized apprenticeship
4080-16 program for the employee's particular craft, trade, or
4081-17 skill, including through training and education
4082-18 courses and opportunities offered by the owner to
4083-19 employees of the coal-fueled electric generating
4084-20 facility or by previous employment experience
4085-21 performing the employee's particular work skill or
4086-22 function.
4087-23 (F) The applicant commits that not less than the
4088-24 prevailing wage, as determined pursuant to the
4089-25 Prevailing Wage Act, will be paid to the applicant's
4090-26 employees engaged in construction activities
4091-
4092-
4093-
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4097-
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4100- HB1056 Engrossed - 115 - LRB104 03146 SPS 13167 b
4101-1 associated with the new renewable energy facility and
4102-2 the new energy storage facility and to the employees
4103-3 of applicant's contractors engaged in construction
4104-4 activities associated with the new renewable energy
4105-5 facility and the new energy storage facility, and
4106-6 that, on or before the commercial operation date of
4107-7 the new renewable energy facility, the applicant shall
4108-8 file a report with the Agency certifying that the
4109-9 requirements of this subparagraph (F) have been met.
4110-10 (G) The applicant commits that if selected, it
4111-11 will negotiate a project labor agreement for the
4112-12 construction of the new renewable energy facility and
4113-13 associated energy storage facility that includes
4114-14 provisions requiring the parties to the agreement to
4115-15 work together to establish diversity threshold
4116-16 requirements and to ensure best efforts to meet
4117-17 diversity targets, improve diversity at the applicable
4118-18 job site, create diverse apprenticeship opportunities,
4119-19 and create opportunities to employ former coal-fired
4120-20 power plant workers.
4121-21 (H) The applicant commits to enter into a contract
4122-22 or contracts for the applicable duration to provide
4123-23 specified numbers of renewable energy credits each
4124-24 year from the new renewable energy facility to
4125-25 electric utilities that served more than 300,000
4126-26 retail customers in this State as of January 1, 2019,
4127-
4128-
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4133-
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4136- HB1056 Engrossed - 116 - LRB104 03146 SPS 13167 b
4137-1 at a price of $30 per renewable energy credit. The
4138-2 price per renewable energy credit shall be fixed at
4139-3 $30 for the applicable duration and the renewable
4140-4 energy credits shall not be indexed renewable energy
4141-5 credits as provided for in item (v) of subparagraph
4142-6 (G) of paragraph (1) of subsection (c) of Section 1-75
4143-7 of this Act. The applicable duration of each contract
4144-8 shall be 20 years, unless the applicant is physically
4145-9 interconnected to the PJM Interconnection, LLC
4146-10 transmission grid and had a generating capacity of at
4147-11 least 1,200 megawatts as of January 1, 2021, in which
4148-12 case the applicable duration of the contract shall be
4149-13 15 years.
4150-14 (I) The applicant's application is certified by an
4151-15 officer of the applicant and by an officer of the
4152-16 applicant's ultimate parent company, if any.
4153-17 (3) An applicant may submit applications to contract
4154-18 to supply renewable energy credits from more than one new
4155-19 renewable energy facility to be constructed at or adjacent
4156-20 to one or more qualifying electric generating facilities
4157-21 owned by the applicant. The Agency may select new
4158-22 renewable energy facilities to be located at or adjacent
4159-23 to the sites of more than one qualifying electric
4160-24 generation facility owned by an applicant to contract with
4161-25 electric utilities to supply renewable energy credits from
4162-26 such facilities.
4163-
4164-
4165-
4166-
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4169-
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4172- HB1056 Engrossed - 117 - LRB104 03146 SPS 13167 b
4173-1 (4) The Agency shall assess fees to each applicant to
4174-2 recover the Agency's costs incurred in receiving and
4175-3 evaluating applications, conducting the procurement event,
4176-4 developing contracts for sale, delivery and purchase of
4177-5 renewable energy credits, and monitoring the
4178-6 administration of such contracts, as provided for in this
4179-7 subsection (c-5), including fees paid to a procurement
4180-8 administrator retained by the Agency for one or more of
4181-9 these purposes.
4182-10 (5) The Agency shall select the applicants and the new
4183-11 renewable energy facilities to contract with electric
4184-12 utilities to supply renewable energy credits in accordance
4185-13 with this subsection (c-5). In the first procurement
4186-14 event, the Agency shall select applicants and new
4187-15 renewable energy facilities to supply renewable energy
4188-16 credits, at a price of $30 per renewable energy credit,
4189-17 aggregating to no less than 400,000 renewable energy
4190-18 credits per year for the applicable duration, assuming
4191-19 sufficient qualifying applications to supply, in the
4192-20 aggregate, at least that amount of renewable energy
4193-21 credits per year; and not more than 580,000 renewable
4194-22 energy credits per year for the applicable duration. In
4195-23 the second procurement event, the Agency shall select
4196-24 applicants and new renewable energy facilities to supply
4197-25 renewable energy credits, at a price of $30 per renewable
4198-26 energy credit, aggregating to no more than 625,000
4199-
4200-
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4208- HB1056 Engrossed - 118 - LRB104 03146 SPS 13167 b
4209-1 renewable energy credits per year less the amount of
4210-2 renewable energy credits each year contracted for as a
4211-3 result of the first procurement event, for the applicable
4212-4 durations. The number of renewable energy credits to be
4213-5 procured as specified in this paragraph (5) shall not be
4214-6 reduced based on renewable energy credits procured in the
4215-7 self-direct renewable energy credit compliance program
4216-8 established pursuant to subparagraph (R) of paragraph (1)
4217-9 of subsection (c) of Section 1-75.
4218-10 (6) The obligation to purchase renewable energy
4219-11 credits from the applicants and their new renewable energy
4220-12 facilities selected by the Agency shall be allocated to
4221-13 the electric utilities based on their respective
4222-14 percentages of kilowatthours delivered to delivery
4223-15 services customers to the aggregate kilowatthour
4224-16 deliveries by the electric utilities to delivery services
4225-17 customers for the year ended December 31, 2021. In order
4226-18 to achieve these allocation percentages between or among
4227-19 the electric utilities, the Agency shall require each
4228-20 applicant that is selected in the procurement event to
4229-21 enter into a contract with each electric utility for the
4230-22 sale and purchase of renewable energy credits from each
4231-23 new renewable energy facility to be constructed and
4232-24 operated by the applicant, with the sale and purchase
4233-25 obligations under the contracts to aggregate to the total
4234-26 number of renewable energy credits per year to be supplied
4235-
4236-
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4244- HB1056 Engrossed - 119 - LRB104 03146 SPS 13167 b
4245-1 by the applicant from the new renewable energy facility.
4246-2 (7) The Agency shall submit its proposed selection of
4247-3 applicants, new renewable energy facilities to be
4248-4 constructed, and renewable energy credit amounts for each
4249-5 procurement event to the Commission for approval. The
4250-6 Commission shall, within 2 business days after receipt of
4251-7 the Agency's proposed selections, approve the proposed
4252-8 selections if it determines that the applicants and the
4253-9 new renewable energy facilities to be constructed meet the
4254-10 selection criteria set forth in this subsection (c-5) and
4255-11 that the Agency seeks approval for contracts of applicable
4256-12 durations aggregating to no more than the maximum amount
4257-13 of renewable energy credits per year authorized by this
4258-14 subsection (c-5) for the procurement event, at a price of
4259-15 $30 per renewable energy credit.
4260-16 (8) The Agency, in conjunction with its procurement
4261-17 administrator if one is retained, the electric utilities,
4262-18 and potential applicants for contracts to produce and
4263-19 supply renewable energy credits pursuant to this
4264-20 subsection (c-5), shall develop a standard form contract
4265-21 for the sale, delivery and purchase of renewable energy
4266-22 credits pursuant to this subsection (c-5). Each contract
4267-23 resulting from the first procurement event shall allow for
4268-24 a commercial operation date for the new renewable energy
4269-25 facility of either June 1, 2023 or June 1, 2024, with such
4270-26 dates subject to adjustment as provided in this paragraph.
4271-
4272-
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4281-1 Each contract resulting from the second procurement event
4282-2 shall provide for a commercial operation date on June 1
4283-3 next occurring up to 48 months after execution of the
4284-4 contract. Each contract shall provide that the owner shall
4285-5 receive payments for renewable energy credits for the
4286-6 applicable durations beginning with the commercial
4287-7 operation date of the new renewable energy facility. The
4288-8 form contract shall provide for adjustments to the
4289-9 commercial operation and payment start dates as needed due
4290-10 to any delays in completing the procurement and
4291-11 contracting processes, in finalizing interconnection
4292-12 agreements and installing interconnection facilities, and
4293-13 in obtaining other necessary governmental permits and
4294-14 approvals. The form contract shall be, to the maximum
4295-15 extent possible, consistent with standard electric
4296-16 industry contracts for sale, delivery, and purchase of
4297-17 renewable energy credits while taking into account the
4298-18 specific requirements of this subsection (c-5). The form
4299-19 contract shall provide for over-delivery and
4300-20 under-delivery of renewable energy credits within
4301-21 reasonable ranges during each 12-month period and penalty,
4302-22 default, and enforcement provisions for failure of the
4303-23 selling party to deliver renewable energy credits as
4304-24 specified in the contract and to comply with the
4305-25 requirements of this subsection (c-5). The standard form
4306-26 contract shall specify that all renewable energy credits
4307-
4308-
4309-
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4311-
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4313-
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4316- HB1056 Engrossed - 121 - LRB104 03146 SPS 13167 b
4317-1 delivered to the electric utility pursuant to the contract
4318-2 shall be retired. The Agency shall make the proposed
4319-3 contracts available for a reasonable period for comment by
4320-4 potential applicants, and shall publish the final form
4321-5 contract at least 30 days before the date of the first
4322-6 procurement event.
4323-7 (9) Coal to Solar and Energy Storage Initiative
4324-8 Charge.
4325-9 (A) By no later than July 1, 2022, each electric
4326-10 utility that served more than 300,000 retail customers
4327-11 in this State as of January 1, 2019 shall file a tariff
4328-12 with the Commission for the billing and collection of
4329-13 a Coal to Solar and Energy Storage Initiative Charge
4330-14 in accordance with subsection (i-5) of Section 16-108
4331-15 of the Public Utilities Act, with such tariff to be
4332-16 effective, following review and approval or
4333-17 modification by the Commission, beginning January 1,
4334-18 2023. The tariff shall provide for the calculation and
4335-19 setting of the electric utility's Coal to Solar and
4336-20 Energy Storage Initiative Charge to collect revenues
4337-21 estimated to be sufficient, in the aggregate, (i) to
4338-22 enable the electric utility to pay for the renewable
4339-23 energy credits it has contracted to purchase in the
4340-24 delivery year beginning June 1, 2023 and each delivery
4341-25 year thereafter from new renewable energy facilities
4342-26 located at the sites of qualifying electric generating
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4353-1 facilities, and (ii) to fund the grant payments to be
4354-2 made in each delivery year by the Department of
4355-3 Commerce and Economic Opportunity, or any successor
4356-4 department or agency, which shall be referred to in
4357-5 this subsection (c-5) as the Department, pursuant to
4358-6 paragraph (10) of this subsection (c-5). The electric
4359-7 utility's tariff shall provide for the billing and
4360-8 collection of the Coal to Solar and Energy Storage
4361-9 Initiative Charge on each kilowatthour of electricity
4362-10 delivered to its delivery services customers within
4363-11 its service territory and shall provide for an annual
4364-12 reconciliation of revenues collected with actual
4365-13 costs, in accordance with subsection (i-5) of Section
4366-14 16-108 of the Public Utilities Act.
4367-15 (B) Each electric utility shall remit on a monthly
4368-16 basis to the State Treasurer, for deposit in the Coal
4369-17 to Solar and Energy Storage Initiative Fund provided
4370-18 for in this subsection (c-5), the electric utility's
4371-19 collections of the Coal to Solar and Energy Storage
4372-20 Initiative Charge in the amount estimated to be needed
4373-21 by the Department for grant payments pursuant to grant
4374-22 contracts entered into by the Department pursuant to
4375-23 paragraph (10) of this subsection (c-5).
4376-24 (10) Coal to Solar and Energy Storage Initiative Fund.
4377-25 (A) The Coal to Solar and Energy Storage
4378-26 Initiative Fund is established as a special fund in
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4389-1 the State treasury. The Coal to Solar and Energy
4390-2 Storage Initiative Fund is authorized to receive, by
4391-3 statutory deposit, that portion specified in item (B)
4392-4 of paragraph (9) of this subsection (c-5) of moneys
4393-5 collected by electric utilities through imposition of
4394-6 the Coal to Solar and Energy Storage Initiative Charge
4395-7 required by this subsection (c-5). The Coal to Solar
4396-8 and Energy Storage Initiative Fund shall be
4397-9 administered by the Department to provide grants to
4398-10 support the installation and operation of energy
4399-11 storage facilities at the sites of qualifying electric
4400-12 generating facilities meeting the criteria specified
4401-13 in this paragraph (10).
4402-14 (B) The Coal to Solar and Energy Storage
4403-15 Initiative Fund shall not be subject to sweeps,
4404-16 administrative charges, or chargebacks, including, but
4405-17 not limited to, those authorized under Section 8h of
4406-18 the State Finance Act, that would in any way result in
4407-19 the transfer of those funds from the Coal to Solar and
4408-20 Energy Storage Initiative Fund to any other fund of
4409-21 this State or in having any such funds utilized for any
4410-22 purpose other than the express purposes set forth in
4411-23 this paragraph (10).
4412-24 (C) The Department shall utilize up to
4413-25 $280,500,000 in the Coal to Solar and Energy Storage
4414-26 Initiative Fund for grants, assuming sufficient
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4425-1 qualifying applicants, to support installation of
4426-2 energy storage facilities at the sites of up to 3
4427-3 qualifying electric generating facilities located in
4428-4 the Midcontinent Independent System Operator, Inc.,
4429-5 region in Illinois and the sites of up to 2 qualifying
4430-6 electric generating facilities located in the PJM
4431-7 Interconnection, LLC region in Illinois that meet the
4432-8 criteria set forth in this subparagraph (C). The
4433-9 criteria for receipt of a grant pursuant to this
4434-10 subparagraph (C) are as follows:
4435-11 (1) the electric generating facility at the
4436-12 site has, or had prior to retirement, an electric
4437-13 generating capacity of at least 150 megawatts;
4438-14 (2) the electric generating facility burns (or
4439-15 burned prior to retirement) coal as its primary
4440-16 source of fuel;
4441-17 (3) if the electric generating facility is
4442-18 retired, it was retired subsequent to January 1,
4443-19 2016;
4444-20 (4) the owner of the electric generating
4445-21 facility has not been selected by the Agency
4446-22 pursuant to this subsection (c-5) of this Section
4447-23 to enter into a contract to sell renewable energy
4448-24 credits to one or more electric utilities from a
4449-25 new renewable energy facility located or to be
4450-26 located at or adjacent to the site at which the
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4461-1 electric generating facility is located;
4462-2 (5) the electric generating facility located
4463-3 at the site was at one time owned, in whole or in
4464-4 part, by a public utility as defined in Section
4465-5 3-105 of the Public Utilities Act;
4466-6 (6) the electric generating facility at the
4467-7 site is not owned by (i) an electric cooperative
4468-8 as defined in Section 3-119 of the Public
4469-9 Utilities Act, or (ii) an entity described in
4470-10 subsection (b)(1) of Section 3-105 of the Public
4471-11 Utilities Act, or an association or consortium of
4472-12 or an entity owned by entities described in items
4473-13 (i) or (ii);
4474-14 (7) the proposed energy storage facility at
4475-15 the site will have energy storage capacity of at
4476-16 least 37 megawatts;
4477-17 (8) the owner commits to place the energy
4478-18 storage facility into commercial operation on
4479-19 either June 1, 2023, June 1, 2024, or June 1, 2025,
4480-20 with such date subject to adjustment as needed due
4481-21 to any delays in completing the grant contracting
4482-22 process, in finalizing interconnection agreements
4483-23 and in installing interconnection facilities, and
4484-24 in obtaining necessary governmental permits and
4485-25 approvals;
4486-26 (9) the owner agrees that the new energy
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4497-1 storage facility will be constructed or installed
4498-2 by a qualified entity or entities consistent with
4499-3 the requirements of subsection (g) of Section
4500-4 16-128A of the Public Utilities Act and any rules
4501-5 adopted under that Section;
4502-6 (10) the owner agrees that personnel operating
4503-7 the energy storage facility will have the
4504-8 requisite skills, knowledge, training, experience,
4505-9 and competence, which may be demonstrated by
4506-10 completion or current participation and ultimate
4507-11 completion by employees of an accredited or
4508-12 otherwise recognized apprenticeship program for
4509-13 the employee's particular craft, trade, or skill,
4510-14 including through training and education courses
4511-15 and opportunities offered by the owner to
4512-16 employees of the coal-fueled electric generating
4513-17 facility or by previous employment experience
4514-18 performing the employee's particular work skill or
4515-19 function;
4516-20 (11) the owner commits that not less than the
4517-21 prevailing wage, as determined pursuant to the
4518-22 Prevailing Wage Act, will be paid to the owner's
4519-23 employees engaged in construction activities
4520-24 associated with the new energy storage facility
4521-25 and to the employees of the owner's contractors
4522-26 engaged in construction activities associated with
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4533-1 the new energy storage facility, and that, on or
4534-2 before the commercial operation date of the new
4535-3 energy storage facility, the owner shall file a
4536-4 report with the Department certifying that the
4537-5 requirements of this subparagraph (11) have been
4538-6 met; and
4539-7 (12) the owner commits that if selected to
4540-8 receive a grant, it will negotiate a project labor
4541-9 agreement for the construction of the new energy
4542-10 storage facility that includes provisions
4543-11 requiring the parties to the agreement to work
4544-12 together to establish diversity threshold
4545-13 requirements and to ensure best efforts to meet
4546-14 diversity targets, improve diversity at the
4547-15 applicable job site, create diverse apprenticeship
4548-16 opportunities, and create opportunities to employ
4549-17 former coal-fired power plant workers.
4550-18 The Department shall accept applications for this
4551-19 grant program until March 31, 2022 and shall announce
4552-20 the award of grants no later than June 1, 2022. The
4553-21 Department shall make the grant payments to a
4554-22 recipient in equal annual amounts for 10 years
4555-23 following the date the energy storage facility is
4556-24 placed into commercial operation. The annual grant
4557-25 payments to a qualifying energy storage facility shall
4558-26 be $110,000 per megawatt of energy storage capacity,
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4569-1 with total annual grant payments pursuant to this
4570-2 subparagraph (C) for qualifying energy storage
4571-3 facilities not to exceed $28,050,000 in any year.
4572-4 (D) Grants of funding for energy storage
4573-5 facilities pursuant to subparagraph (C) of this
4574-6 paragraph (10), from the Coal to Solar and Energy
4575-7 Storage Initiative Fund, shall be memorialized in
4576-8 grant contracts between the Department and the
4577-9 recipient. The grant contracts shall specify the date
4578-10 or dates in each year on which the annual grant
4579-11 payments shall be paid.
4580-12 (E) All disbursements from the Coal to Solar and
4581-13 Energy Storage Initiative Fund shall be made only upon
4582-14 warrants of the Comptroller drawn upon the Treasurer
4583-15 as custodian of the Fund upon vouchers signed by the
4584-16 Director of the Department or by the person or persons
4585-17 designated by the Director of the Department for that
4586-18 purpose. The Comptroller is authorized to draw the
4587-19 warrants upon vouchers so signed. The Treasurer shall
4588-20 accept all written warrants so signed and shall be
4589-21 released from liability for all payments made on those
4590-22 warrants.
4591-23 (11) Diversity, equity, and inclusion plans.
4592-24 (A) Each applicant selected in a procurement event
4593-25 to contract to supply renewable energy credits in
4594-26 accordance with this subsection (c-5) and each owner
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4605-1 selected by the Department to receive a grant or
4606-2 grants to support the construction and operation of a
4607-3 new energy storage facility or facilities in
4608-4 accordance with this subsection (c-5) shall, within 60
4609-5 days following the Commission's approval of the
4610-6 applicant to contract to supply renewable energy
4611-7 credits or within 60 days following execution of a
4612-8 grant contract with the Department, as applicable,
4613-9 submit to the Commission a diversity, equity, and
4614-10 inclusion plan setting forth the applicant's or
4615-11 owner's numeric goals for the diversity composition of
4616-12 its supplier entities for the new renewable energy
4617-13 facility or new energy storage facility, as
4618-14 applicable, which shall be referred to for purposes of
4619-15 this paragraph (11) as the project, and the
4620-16 applicant's or owner's action plan and schedule for
4621-17 achieving those goals.
4622-18 (B) For purposes of this paragraph (11), diversity
4623-19 composition shall be based on the percentage, which
4624-20 shall be a minimum of 25%, of eligible expenditures
4625-21 for contract awards for materials and services (which
4626-22 shall be defined in the plan) to business enterprises
4627-23 owned by minority persons, women, or persons with
4628-24 disabilities as defined in Section 2 of the Business
4629-25 Enterprise for Minorities, Women, and Persons with
4630-26 Disabilities Act, to LGBTQ business enterprises, to
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4641-1 veteran-owned business enterprises, and to business
4642-2 enterprises located in environmental justice
4643-3 communities. The diversity composition goals of the
4644-4 plan may include eligible expenditures in areas for
4645-5 vendor or supplier opportunities in addition to
4646-6 development and construction of the project, and may
4647-7 exclude from eligible expenditures materials and
4648-8 services with limited market availability, limited
4649-9 production and availability from suppliers in the
4650-10 United States, such as solar panels and storage
4651-11 batteries, and material and services that are subject
4652-12 to critical energy infrastructure or cybersecurity
4653-13 requirements or restrictions. The plan may provide
4654-14 that the diversity composition goals may be met
4655-15 through Tier 1 Direct or Tier 2 subcontracting
4656-16 expenditures or a combination thereof for the project.
4657-17 (C) The plan shall provide for, but not be limited
4658-18 to: (i) internal initiatives, including multi-tier
4659-19 initiatives, by the applicant or owner, or by its
4660-20 engineering, procurement and construction contractor
4661-21 if one is used for the project, which for purposes of
4662-22 this paragraph (11) shall be referred to as the EPC
4663-23 contractor, to enable diverse businesses to be
4664-24 considered fairly for selection to provide materials
4665-25 and services; (ii) requirements for the applicant or
4666-26 owner or its EPC contractor to proactively solicit and
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4677-1 utilize diverse businesses to provide materials and
4678-2 services; and (iii) requirements for the applicant or
4679-3 owner or its EPC contractor to hire a diverse
4680-4 workforce for the project. The plan shall include a
4681-5 description of the applicant's or owner's diversity
4682-6 recruiting efforts both for the project and for other
4683-7 areas of the applicant's or owner's business
4684-8 operations. The plan shall provide for the imposition
4685-9 of financial penalties on the applicant's or owner's
4686-10 EPC contractor for failure to exercise best efforts to
4687-11 comply with and execute the EPC contractor's diversity
4688-12 obligations under the plan. The plan may provide for
4689-13 the applicant or owner to set aside a portion of the
4690-14 work on the project to serve as an incubation program
4691-15 for qualified businesses, as specified in the plan,
4692-16 owned by minority persons, women, persons with
4693-17 disabilities, LGBTQ persons, and veterans, and
4694-18 businesses located in environmental justice
4695-19 communities, seeking to enter the renewable energy
4696-20 industry.
4697-21 (D) The applicant or owner may submit a revised or
4698-22 updated plan to the Commission from time to time as
4699-23 circumstances warrant. The applicant or owner shall
4700-24 file annual reports with the Commission detailing the
4701-25 applicant's or owner's progress in implementing its
4702-26 plan and achieving its goals and any modifications the
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4713-1 applicant or owner has made to its plan to better
4714-2 achieve its diversity, equity and inclusion goals. The
4715-3 applicant or owner shall file a final report on the
4716-4 fifth June 1 following the commercial operation date
4717-5 of the new renewable energy resource or new energy
4718-6 storage facility, but the applicant or owner shall
4719-7 thereafter continue to be subject to applicable
4720-8 reporting requirements of Section 5-117 of the Public
4721-9 Utilities Act.
4722-10 (c-10) Equity accountability system. It is the purpose of
4723-11 this subsection (c-10) to create an equity accountability
4724-12 system, which includes the minimum equity standards for all
4725-13 renewable energy procurements, the equity category of the
4726-14 Adjustable Block Program, and the equity prioritization for
4727-15 noncompetitive procurements, that is successful in advancing
4728-16 priority access to the clean energy economy for businesses and
4729-17 workers from communities that have been excluded from economic
4730-18 opportunities in the energy sector, have been subject to
4731-19 disproportionate levels of pollution, and have
4732-20 disproportionately experienced negative public health
4733-21 outcomes. Further, it is the purpose of this subsection to
4734-22 ensure that this equity accountability system is successful in
4735-23 advancing equity across Illinois by providing access to the
4736-24 clean energy economy for businesses and workers from
4737-25 communities that have been historically excluded from economic
4738-26 opportunities in the energy sector, have been subject to
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4749-1 disproportionate levels of pollution, and have
4750-2 disproportionately experienced negative public health
4751-3 outcomes.
4752-4 (1) Minimum equity standards. The Agency shall create
4753-5 programs with the purpose of increasing access to and
4754-6 development of equity eligible contractors, who are prime
4755-7 contractors and subcontractors, across all of the programs
4756-8 it manages. All applications for renewable energy credit
4757-9 procurements shall comply with specific minimum equity
4758-10 commitments. Starting in the delivery year immediately
4759-11 following the next long-term renewable resources
4760-12 procurement plan, at least 10% of the project workforce
4761-13 for each entity participating in a procurement program
4762-14 outlined in this subsection (c-10) must be done by equity
4763-15 eligible persons or equity eligible contractors. The
4764-16 Agency shall increase the minimum percentage each delivery
4765-17 year thereafter by increments that ensure a statewide
4766-18 average of 30% of the project workforce for each entity
4767-19 participating in a procurement program is done by equity
4768-20 eligible persons or equity eligible contractors by 2030.
4769-21 The Agency shall propose a schedule of percentage
4770-22 increases to the minimum equity standards in its draft
4771-23 revised renewable energy resources procurement plan
4772-24 submitted to the Commission for approval pursuant to
4773-25 paragraph (5) of subsection (b) of Section 16-111.5 of the
4774-26 Public Utilities Act. In determining these annual
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4785-1 increases, the Agency shall have the discretion to
4786-2 establish different minimum equity standards for different
4787-3 types of procurements and different regions of the State
4788-4 if the Agency finds that doing so will further the
4789-5 purposes of this subsection (c-10). The proposed schedule
4790-6 of annual increases shall be revisited and updated on an
4791-7 annual basis. Revisions shall be developed with
4792-8 stakeholder input, including from equity eligible persons,
4793-9 equity eligible contractors, clean energy industry
4794-10 representatives, and community-based organizations that
4795-11 work with such persons and contractors.
4796-12 (A) At the start of each delivery year, the Agency
4797-13 shall require a compliance plan from each entity
4798-14 participating in a procurement program of subsection
4799-15 (c) of this Section that demonstrates how they will
4800-16 achieve compliance with the minimum equity standard
4801-17 percentage for work completed in that delivery year.
4802-18 If an entity applies for its approved vendor or
4803-19 designee status between delivery years, the Agency
4804-20 shall require a compliance plan at the time of
4805-21 application.
4806-22 (B) Halfway through each delivery year, the Agency
4807-23 shall require each entity participating in a
4808-24 procurement program to confirm that it will achieve
4809-25 compliance in that delivery year, when applicable. The
4810-26 Agency may offer corrective action plans to entities
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4821-1 that are not on track to achieve compliance.
4822-2 (C) At the end of each delivery year, each entity
4823-3 participating and completing work in that delivery
4824-4 year in a procurement program of subsection (c) shall
4825-5 submit a report to the Agency that demonstrates how it
4826-6 achieved compliance with the minimum equity standards
4827-7 percentage for that delivery year.
4828-8 (D) The Agency shall prohibit participation in
4829-9 procurement programs by an approved vendor or
4830-10 designee, as applicable, or entities with which an
4831-11 approved vendor or designee, as applicable, shares a
4832-12 common parent company if an approved vendor or
4833-13 designee, as applicable, failed to meet the minimum
4834-14 equity standards for the prior delivery year. Waivers
4835-15 approved for lack of equity eligible persons or equity
4836-16 eligible contractors in a geographic area of a project
4837-17 shall not count against the approved vendor or
4838-18 designee. The Agency shall offer a corrective action
4839-19 plan for any such entities to assist them in obtaining
4840-20 compliance and shall allow continued access to
4841-21 procurement programs upon an approved vendor or
4842-22 designee demonstrating compliance.
4843-23 (E) The Agency shall pursue efficiencies achieved
4844-24 by combining with other approved vendor or designee
4845-25 reporting.
4846-26 (2) Equity accountability system within the Adjustable
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4857-1 Block program. The equity category described in item (vi)
4858-2 of subparagraph (K) of subsection (c) is only available to
4859-3 applicants that are equity eligible contractors.
4860-4 (3) Equity accountability system within competitive
4861-5 procurements. Through its long-term renewable resources
4862-6 procurement plan, the Agency shall develop requirements
4863-7 for ensuring that competitive procurement processes,
4864-8 including utility-scale solar, utility-scale wind, and
4865-9 brownfield site photovoltaic projects, advance the equity
4866-10 goals of this subsection (c-10). Subject to Commission
4867-11 approval, the Agency shall develop bid application
4868-12 requirements and a bid evaluation methodology for ensuring
4869-13 that utilization of equity eligible contractors, whether
4870-14 as bidders or as participants on project development, is
4871-15 optimized, including requiring that winning or successful
4872-16 applicants for utility-scale projects are or will partner
4873-17 with equity eligible contractors and giving preference to
4874-18 bids through which a higher portion of contract value
4875-19 flows to equity eligible contractors. To the extent
4876-20 practicable, entities participating in competitive
4877-21 procurements shall also be required to meet all the equity
4878-22 accountability requirements for approved vendors and their
4879-23 designees under this subsection (c-10). In developing
4880-24 these requirements, the Agency shall also consider whether
4881-25 equity goals can be further advanced through additional
4882-26 measures.
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4893-1 (4) In the first revision to the long-term renewable
4894-2 energy resources procurement plan and each revision
4895-3 thereafter, the Agency shall include the following:
4896-4 (A) The current status and number of equity
4897-5 eligible contractors listed in the Energy Workforce
4898-6 Equity Database designed in subsection (c-25),
4899-7 including the number of equity eligible contractors
4900-8 with current certifications as issued by the Agency.
4901-9 (B) A mechanism for measuring, tracking, and
4902-10 reporting project workforce at the approved vendor or
4903-11 designee level, as applicable, which shall include a
4904-12 measurement methodology and records to be made
4905-13 available for audit by the Agency or the Program
4906-14 Administrator.
4907-15 (C) A program for approved vendors, designees,
4908-16 eligible persons, and equity eligible contractors to
4909-17 receive trainings, guidance, and other support from
4910-18 the Agency or its designee regarding the equity
4911-19 category outlined in item (vi) of subparagraph (K) of
4912-20 paragraph (1) of subsection (c) and in meeting the
4913-21 minimum equity standards of this subsection (c-10).
4914-22 (D) A process for certifying equity eligible
4915-23 contractors and equity eligible persons. The
4916-24 certification process shall coordinate with the Energy
4917-25 Workforce Equity Database set forth in subsection
4918-26 (c-25).
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4929-1 (E) An application for waiver of the minimum
4930-2 equity standards of this subsection, which the Agency
4931-3 shall have the discretion to grant in rare
4932-4 circumstances. The Agency may grant such a waiver
4933-5 where the applicant provides evidence of significant
4934-6 efforts toward meeting the minimum equity commitment,
4935-7 including: use of the Energy Workforce Equity
4936-8 Database; efforts to hire or contract with entities
4937-9 that hire eligible persons; and efforts to establish
4938-10 contracting relationships with eligible contractors.
4939-11 The Agency shall support applicants in understanding
4940-12 the Energy Workforce Equity Database and other
4941-13 resources for pursuing compliance of the minimum
4942-14 equity standards. Waivers shall be project-specific,
4943-15 unless the Agency deems it necessary to grant a waiver
4944-16 across a portfolio of projects, and in effect for no
4945-17 longer than one year. Any waiver extension or
4946-18 subsequent waiver request from an applicant shall be
4947-19 subject to the requirements of this Section and shall
4948-20 specify efforts made to reach compliance. When
4949-21 considering whether to grant a waiver, and to what
4950-22 extent, the Agency shall consider the degree to which
4951-23 similarly situated applicants have been able to meet
4952-24 these minimum equity commitments. For repeated waiver
4953-25 requests for specific lack of eligible persons or
4954-26 eligible contractors available, the Agency shall make
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4965-1 recommendations to target recruitment to add such
4966-2 eligible persons or eligible contractors to the
4967-3 database.
4968-4 (5) The Agency shall collect information about work on
4969-5 projects or portfolios of projects subject to these
4970-6 minimum equity standards to ensure compliance with this
4971-7 subsection (c-10). Reporting in furtherance of this
4972-8 requirement may be combined with other annual reporting
4973-9 requirements. Such reporting shall include proof of
4974-10 certification of each equity eligible contractor or equity
4975-11 eligible person during the applicable time period.
4976-12 (6) The Agency shall keep confidential all information
4977-13 and communication that provides private or personal
4978-14 information.
4979-15 (7) Modifications to the equity accountability system.
4980-16 As part of the update of the long-term renewable resources
4981-17 procurement plan to be initiated in 2023, or sooner if the
4982-18 Agency deems necessary, the Agency shall determine the
4983-19 extent to which the equity accountability system described
4984-20 in this subsection (c-10) has advanced the goals of this
4985-21 amendatory Act of the 102nd General Assembly, including
4986-22 through the inclusion of equity eligible persons and
4987-23 equity eligible contractors in renewable energy credit
4988-24 projects. If the Agency finds that the equity
4989-25 accountability system has failed to meet those goals to
4990-26 its fullest potential, the Agency may revise the following
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5001-1 criteria for future Agency procurements: (A) the
5002-2 percentage of project workforce, or other appropriate
5003-3 workforce measure, certified as equity eligible persons or
5004-4 equity eligible contractors; (B) definitions for equity
5005-5 investment eligible persons and equity investment eligible
5006-6 community; and (C) such other modifications necessary to
5007-7 advance the goals of this amendatory Act of the 102nd
5008-8 General Assembly effectively. Such revised criteria may
5009-9 also establish distinct equity accountability systems for
5010-10 different types of procurements or different regions of
5011-11 the State if the Agency finds that doing so will further
5012-12 the purposes of such programs. Revisions shall be
5013-13 developed with stakeholder input, including from equity
5014-14 eligible persons, equity eligible contractors, and
5015-15 community-based organizations that work with such persons
5016-16 and contractors.
5017-17 (c-15) Racial discrimination elimination powers and
5018-18 process.
5019-19 (1) Purpose. It is the purpose of this subsection to
5020-20 empower the Agency and other State actors to remedy racial
5021-21 discrimination in Illinois' clean energy economy as
5022-22 effectively and expediently as possible, including through
5023-23 the use of race-conscious remedies, such as race-conscious
5024-24 contracting and hiring goals, as consistent with State and
5025-25 federal law.
5026-26 (2) Racial disparity and discrimination review
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5037-1 process.
5038-2 (A) Within one year after awarding contracts using
5039-3 the equity actions processes established in this
5040-4 Section, the Agency shall publish a report evaluating
5041-5 the effectiveness of the equity actions point criteria
5042-6 of this Section in increasing participation of equity
5043-7 eligible persons and equity eligible contractors. The
5044-8 report shall disaggregate participating workers and
5045-9 contractors by race and ethnicity. The report shall be
5046-10 forwarded to the Governor, the General Assembly, and
5047-11 the Illinois Commerce Commission and be made available
5048-12 to the public.
5049-13 (B) As soon as is practicable thereafter, the
5050-14 Agency, in consultation with the Department of
5051-15 Commerce and Economic Opportunity, Department of
5052-16 Labor, and other agencies that may be relevant, shall
5053-17 commission and publish a disparity and availability
5054-18 study that measures the presence and impact of
5055-19 discrimination on minority businesses and workers in
5056-20 Illinois' clean energy economy. The Agency may hire
5057-21 consultants and experts to conduct the disparity and
5058-22 availability study, with the retention of those
5059-23 consultants and experts exempt from the requirements
5060-24 of Section 20-10 of the Illinois Procurement Code. The
5061-25 Illinois Power Agency shall forward a copy of its
5062-26 findings and recommendations to the Governor, the
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5073-1 General Assembly, and the Illinois Commerce
5074-2 Commission. If the disparity and availability study
5075-3 establishes a strong basis in evidence that there is
5076-4 discrimination in Illinois' clean energy economy, the
5077-5 Agency, Department of Commerce and Economic
5078-6 Opportunity, Department of Labor, Department of
5079-7 Corrections, and other appropriate agencies shall take
5080-8 appropriate remedial actions, including race-conscious
5081-9 remedial actions as consistent with State and federal
5082-10 law, to effectively remedy this discrimination. Such
5083-11 remedies may include modification of the equity
5084-12 accountability system as described in subsection
5085-13 (c-10).
5086-14 (c-20) Program data collection.
5087-15 (1) Purpose. Data collection, data analysis, and
5088-16 reporting are critical to ensure that the benefits of the
5089-17 clean energy economy provided to Illinois residents and
5090-18 businesses are equitably distributed across the State. The
5091-19 Agency shall collect data from program applicants in order
5092-20 to track and improve equitable distribution of benefits
5093-21 across Illinois communities for all procurements the
5094-22 Agency conducts. The Agency shall use this data to, among
5095-23 other things, measure any potential impact of racial
5096-24 discrimination on the distribution of benefits and provide
5097-25 information necessary to correct any discrimination
5098-26 through methods consistent with State and federal law.
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5109-1 (2) Agency collection of program data. The Agency
5110-2 shall collect demographic and geographic data for each
5111-3 entity awarded contracts under any Agency-administered
5112-4 program.
5113-5 (3) Required information to be collected. The Agency
5114-6 shall collect the following information from applicants
5115-7 and program participants where applicable:
5116-8 (A) demographic information, including racial or
5117-9 ethnic identity for real persons employed, contracted,
5118-10 or subcontracted through the program and owners of
5119-11 businesses or entities that apply to receive renewable
5120-12 energy credits from the Agency;
5121-13 (B) geographic location of the residency of real
5122-14 persons employed, contracted, or subcontracted through
5123-15 the program and geographic location of the
5124-16 headquarters of the business or entity that applies to
5125-17 receive renewable energy credits from the Agency; and
5126-18 (C) any other information the Agency determines is
5127-19 necessary for the purpose of achieving the purpose of
5128-20 this subsection.
5129-21 (4) Publication of collected information. The Agency
5130-22 shall publish, at least annually, information on the
5131-23 demographics of program participants on an aggregate
5132-24 basis.
5133-25 (5) Nothing in this subsection shall be interpreted to
5134-26 limit the authority of the Agency, or other agency or
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5145-1 department of the State, to require or collect demographic
5146-2 information from applicants of other State programs.
5147-3 (c-25) Energy Workforce Equity Database.
5148-4 (1) The Agency, in consultation with the Department of
5149-5 Commerce and Economic Opportunity, shall create an Energy
5150-6 Workforce Equity Database, and may contract with a third
5151-7 party to do so ("database program administrator"). If the
5152-8 Department decides to contract with a third party, that
5153-9 third party shall be exempt from the requirements of
5154-10 Section 20-10 of the Illinois Procurement Code. The Energy
5155-11 Workforce Equity Database shall be a searchable database
5156-12 of suppliers, vendors, and subcontractors for clean energy
5157-13 industries that is:
5158-14 (A) publicly accessible;
5159-15 (B) easy for people to find and use;
5160-16 (C) organized by company specialty or field;
5161-17 (D) region-specific; and
5162-18 (E) populated with information including, but not
5163-19 limited to, contacts for suppliers, vendors, or
5164-20 subcontractors who are minority and women-owned
5165-21 business enterprise certified or who participate or
5166-22 have participated in any of the programs described in
5167-23 this Act.
5168-24 (2) The Agency shall create an easily accessible,
5169-25 public facing online tool using the database information
5170-26 that includes, at a minimum, the following:
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5181-1 (A) a map of environmental justice and equity
5182-2 investment eligible communities;
5183-3 (B) job postings and recruiting opportunities;
5184-4 (C) a means by which recruiting clean energy
5185-5 companies can find and interact with current or former
5186-6 participants of clean energy workforce training
5187-7 programs;
5188-8 (D) information on workforce training service
5189-9 providers and training opportunities available to
5190-10 prospective workers;
5191-11 (E) renewable energy company diversity reporting;
5192-12 (F) a list of equity eligible contractors with
5193-13 their contact information, types of work performed,
5194-14 and locations worked in;
5195-15 (G) reporting on outcomes of the programs
5196-16 described in the workforce programs of the Energy
5197-17 Transition Act, including information such as, but not
5198-18 limited to, retention rate, graduation rate, and
5199-19 placement rates of trainees; and
5200-20 (H) information about the Jobs and Environmental
5201-21 Justice Grant Program, the Clean Energy Jobs and
5202-22 Justice Fund, and other sources of capital.
5203-23 (3) The Agency shall ensure the database is regularly
5204-24 updated to ensure information is current and shall
5205-25 coordinate with the Department of Commerce and Economic
5206-26 Opportunity to ensure that it includes information on
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5217-1 individuals and entities that are or have participated in
5218-2 the Clean Jobs Workforce Network Program, Clean Energy
5219-3 Contractor Incubator Program, Returning Residents Clean
5220-4 Jobs Training Program, or Clean Energy Primes Contractor
5221-5 Accelerator Program.
5222-6 (c-30) Enforcement of minimum equity standards. All
5223-7 entities seeking renewable energy credits must submit an
5224-8 annual report to demonstrate compliance with each of the
5225-9 equity commitments required under subsection (c-10). If the
5226-10 Agency concludes the entity has not met or maintained its
5227-11 minimum equity standards required under the applicable
5228-12 subparagraphs under subsection (c-10), the Agency shall deny
5229-13 the entity's ability to participate in procurement programs in
5230-14 subsection (c), including by withholding approved vendor or
5231-15 designee status. The Agency may require the entity to enter
5232-16 into a corrective action plan. An entity that is not
5233-17 recertified for failing to meet required equity actions in
5234-18 subparagraph (c-10) may reapply once they have a corrective
5235-19 action plan and achieve compliance with the minimum equity
5236-20 standards.
5237-21 (d) Clean coal portfolio standard.
5238-22 (1) The procurement plans shall include electricity
5239-23 generated using clean coal. Each utility shall enter into
5240-24 one or more sourcing agreements with the initial clean
5241-25 coal facility, as provided in paragraph (3) of this
5242-26 subsection (d), covering electricity generated by the
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5253-1 initial clean coal facility representing at least 5% of
5254-2 each utility's total supply to serve the load of eligible
5255-3 retail customers in 2015 and each year thereafter, as
5256-4 described in paragraph (3) of this subsection (d), subject
5257-5 to the limits specified in paragraph (2) of this
5258-6 subsection (d). It is the goal of the State that by January
5259-7 1, 2025, 25% of the electricity used in the State shall be
5260-8 generated by cost-effective clean coal facilities. For
5261-9 purposes of this subsection (d), "cost-effective" means
5262-10 that the expenditures pursuant to such sourcing agreements
5263-11 do not cause the limit stated in paragraph (2) of this
5264-12 subsection (d) to be exceeded and do not exceed cost-based
5265-13 benchmarks, which shall be developed to assess all
5266-14 expenditures pursuant to such sourcing agreements covering
5267-15 electricity generated by clean coal facilities, other than
5268-16 the initial clean coal facility, by the procurement
5269-17 administrator, in consultation with the Commission staff,
5270-18 Agency staff, and the procurement monitor and shall be
5271-19 subject to Commission review and approval.
5272-20 A utility party to a sourcing agreement shall
5273-21 immediately retire any emission credits that it receives
5274-22 in connection with the electricity covered by such
5275-23 agreement.
5276-24 Utilities shall maintain adequate records documenting
5277-25 the purchases under the sourcing agreement to comply with
5278-26 this subsection (d) and shall file an accounting with the
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5289-1 load forecast that must be filed with the Agency by July 15
5290-2 of each year, in accordance with subsection (d) of Section
5291-3 16-111.5 of the Public Utilities Act.
5292-4 A utility shall be deemed to have complied with the
5293-5 clean coal portfolio standard specified in this subsection
5294-6 (d) if the utility enters into a sourcing agreement as
5295-7 required by this subsection (d).
5296-8 (2) For purposes of this subsection (d), the required
5297-9 execution of sourcing agreements with the initial clean
5298-10 coal facility for a particular year shall be measured as a
5299-11 percentage of the actual amount of electricity
5300-12 (megawatt-hours) supplied by the electric utility to
5301-13 eligible retail customers in the planning year ending
5302-14 immediately prior to the agreement's execution. For
5303-15 purposes of this subsection (d), the amount paid per
5304-16 kilowatthour means the total amount paid for electric
5305-17 service expressed on a per kilowatthour basis. For
5306-18 purposes of this subsection (d), the total amount paid for
5307-19 electric service includes without limitation amounts paid
5308-20 for supply, transmission, distribution, surcharges and
5309-21 add-on taxes.
5310-22 Notwithstanding the requirements of this subsection
5311-23 (d), the total amount paid under sourcing agreements with
5312-24 clean coal facilities pursuant to the procurement plan for
5313-25 any given year shall be reduced by an amount necessary to
5314-26 limit the annual estimated average net increase due to the
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5325-1 costs of these resources included in the amounts paid by
5326-2 eligible retail customers in connection with electric
5327-3 service to:
5328-4 (A) in 2010, no more than 0.5% of the amount paid
5329-5 per kilowatthour by those customers during the year
5330-6 ending May 31, 2009;
5331-7 (B) in 2011, the greater of an additional 0.5% of
5332-8 the amount paid per kilowatthour by those customers
5333-9 during the year ending May 31, 2010 or 1% of the amount
5334-10 paid per kilowatthour by those customers during the
5335-11 year ending May 31, 2009;
5336-12 (C) in 2012, the greater of an additional 0.5% of
5337-13 the amount paid per kilowatthour by those customers
5338-14 during the year ending May 31, 2011 or 1.5% of the
5339-15 amount paid per kilowatthour by those customers during
5340-16 the year ending May 31, 2009;
5341-17 (D) in 2013, the greater of an additional 0.5% of
5342-18 the amount paid per kilowatthour by those customers
5343-19 during the year ending May 31, 2012 or 2% of the amount
5344-20 paid per kilowatthour by those customers during the
5345-21 year ending May 31, 2009; and
5346-22 (E) thereafter, the total amount paid under
5347-23 sourcing agreements with clean coal facilities
5348-24 pursuant to the procurement plan for any single year
5349-25 shall be reduced by an amount necessary to limit the
5350-26 estimated average net increase due to the cost of
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5361-1 these resources included in the amounts paid by
5362-2 eligible retail customers in connection with electric
5363-3 service to no more than the greater of (i) 2.015% of
5364-4 the amount paid per kilowatthour by those customers
5365-5 during the year ending May 31, 2009 or (ii) the
5366-6 incremental amount per kilowatthour paid for these
5367-7 resources in 2013. These requirements may be altered
5368-8 only as provided by statute.
5369-9 No later than June 30, 2015, the Commission shall
5370-10 review the limitation on the total amount paid under
5371-11 sourcing agreements, if any, with clean coal facilities
5372-12 pursuant to this subsection (d) and report to the General
5373-13 Assembly its findings as to whether that limitation unduly
5374-14 constrains the amount of electricity generated by
5375-15 cost-effective clean coal facilities that is covered by
5376-16 sourcing agreements.
5377-17 (3) Initial clean coal facility. In order to promote
5378-18 development of clean coal facilities in Illinois, each
5379-19 electric utility subject to this Section shall execute a
5380-20 sourcing agreement to source electricity from a proposed
5381-21 clean coal facility in Illinois (the "initial clean coal
5382-22 facility") that will have a nameplate capacity of at least
5383-23 500 MW when commercial operation commences, that has a
5384-24 final Clean Air Act permit on June 1, 2009 (the effective
5385-25 date of Public Act 95-1027), and that will meet the
5386-26 definition of clean coal facility in Section 1-10 of this
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5397-1 Act when commercial operation commences. The sourcing
5398-2 agreements with this initial clean coal facility shall be
5399-3 subject to both approval of the initial clean coal
5400-4 facility by the General Assembly and satisfaction of the
5401-5 requirements of paragraph (4) of this subsection (d) and
5402-6 shall be executed within 90 days after any such approval
5403-7 by the General Assembly. The Agency and the Commission
5404-8 shall have authority to inspect all books and records
5405-9 associated with the initial clean coal facility during the
5406-10 term of such a sourcing agreement. A utility's sourcing
5407-11 agreement for electricity produced by the initial clean
5408-12 coal facility shall include:
5409-13 (A) a formula contractual price (the "contract
5410-14 price") approved pursuant to paragraph (4) of this
5411-15 subsection (d), which shall:
5412-16 (i) be determined using a cost of service
5413-17 methodology employing either a level or deferred
5414-18 capital recovery component, based on a capital
5415-19 structure consisting of 45% equity and 55% debt,
5416-20 and a return on equity as may be approved by the
5417-21 Federal Energy Regulatory Commission, which in any
5418-22 case may not exceed the lower of 11.5% or the rate
5419-23 of return approved by the General Assembly
5420-24 pursuant to paragraph (4) of this subsection (d);
5421-25 and
5422-26 (ii) provide that all miscellaneous net
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5433-1 revenue, including but not limited to net revenue
5434-2 from the sale of emission allowances, if any,
5435-3 substitute natural gas, if any, grants or other
5436-4 support provided by the State of Illinois or the
5437-5 United States Government, firm transmission
5438-6 rights, if any, by-products produced by the
5439-7 facility, energy or capacity derived from the
5440-8 facility and not covered by a sourcing agreement
5441-9 pursuant to paragraph (3) of this subsection (d)
5442-10 or item (5) of subsection (d) of Section 16-115 of
5443-11 the Public Utilities Act, whether generated from
5444-12 the synthesis gas derived from coal, from SNG, or
5445-13 from natural gas, shall be credited against the
5446-14 revenue requirement for this initial clean coal
5447-15 facility;
5448-16 (B) power purchase provisions, which shall:
5449-17 (i) provide that the utility party to such
5450-18 sourcing agreement shall pay the contract price
5451-19 for electricity delivered under such sourcing
5452-20 agreement;
5453-21 (ii) require delivery of electricity to the
5454-22 regional transmission organization market of the
5455-23 utility that is party to such sourcing agreement;
5456-24 (iii) require the utility party to such
5457-25 sourcing agreement to buy from the initial clean
5458-26 coal facility in each hour an amount of energy
5459-
5460-
5461-
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5464- HB1056 Engrossed - 152 - LRB104 03146 SPS 13167 b
5465-
5466-
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5468- HB1056 Engrossed - 153 - LRB104 03146 SPS 13167 b
5469-1 equal to all clean coal energy made available from
5470-2 the initial clean coal facility during such hour
5471-3 times a fraction, the numerator of which is such
5472-4 utility's retail market sales of electricity
5473-5 (expressed in kilowatthours sold) in the State
5474-6 during the prior calendar month and the
5475-7 denominator of which is the total retail market
5476-8 sales of electricity (expressed in kilowatthours
5477-9 sold) in the State by utilities during such prior
5478-10 month and the sales of electricity (expressed in
5479-11 kilowatthours sold) in the State by alternative
5480-12 retail electric suppliers during such prior month
5481-13 that are subject to the requirements of this
5482-14 subsection (d) and paragraph (5) of subsection (d)
5483-15 of Section 16-115 of the Public Utilities Act,
5484-16 provided that the amount purchased by the utility
5485-17 in any year will be limited by paragraph (2) of
5486-18 this subsection (d); and
5487-19 (iv) be considered pre-existing contracts in
5488-20 such utility's procurement plans for eligible
5489-21 retail customers;
5490-22 (C) contract for differences provisions, which
5491-23 shall:
5492-24 (i) require the utility party to such sourcing
5493-25 agreement to contract with the initial clean coal
5494-26 facility in each hour with respect to an amount of
5495-
5496-
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5501-
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5504- HB1056 Engrossed - 154 - LRB104 03146 SPS 13167 b
5505-1 energy equal to all clean coal energy made
5506-2 available from the initial clean coal facility
5507-3 during such hour times a fraction, the numerator
5508-4 of which is such utility's retail market sales of
5509-5 electricity (expressed in kilowatthours sold) in
5510-6 the utility's service territory in the State
5511-7 during the prior calendar month and the
5512-8 denominator of which is the total retail market
5513-9 sales of electricity (expressed in kilowatthours
5514-10 sold) in the State by utilities during such prior
5515-11 month and the sales of electricity (expressed in
5516-12 kilowatthours sold) in the State by alternative
5517-13 retail electric suppliers during such prior month
5518-14 that are subject to the requirements of this
5519-15 subsection (d) and paragraph (5) of subsection (d)
5520-16 of Section 16-115 of the Public Utilities Act,
5521-17 provided that the amount paid by the utility in
5522-18 any year will be limited by paragraph (2) of this
5523-19 subsection (d);
5524-20 (ii) provide that the utility's payment
5525-21 obligation in respect of the quantity of
5526-22 electricity determined pursuant to the preceding
5527-23 clause (i) shall be limited to an amount equal to
5528-24 (1) the difference between the contract price
5529-25 determined pursuant to subparagraph (A) of
5530-26 paragraph (3) of this subsection (d) and the
5531-
5532-
5533-
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5537-
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5540- HB1056 Engrossed - 155 - LRB104 03146 SPS 13167 b
5541-1 day-ahead price for electricity delivered to the
5542-2 regional transmission organization market of the
5543-3 utility that is party to such sourcing agreement
5544-4 (or any successor delivery point at which such
5545-5 utility's supply obligations are financially
5546-6 settled on an hourly basis) (the "reference
5547-7 price") on the day preceding the day on which the
5548-8 electricity is delivered to the initial clean coal
5549-9 facility busbar, multiplied by (2) the quantity of
5550-10 electricity determined pursuant to the preceding
5551-11 clause (i); and
5552-12 (iii) not require the utility to take physical
5553-13 delivery of the electricity produced by the
5554-14 facility;
5555-15 (D) general provisions, which shall:
5556-16 (i) specify a term of no more than 30 years,
5557-17 commencing on the commercial operation date of the
5558-18 facility;
5559-19 (ii) provide that utilities shall maintain
5560-20 adequate records documenting purchases under the
5561-21 sourcing agreements entered into to comply with
5562-22 this subsection (d) and shall file an accounting
5563-23 with the load forecast that must be filed with the
5564-24 Agency by July 15 of each year, in accordance with
5565-25 subsection (d) of Section 16-111.5 of the Public
5566-26 Utilities Act;
5567-
5568-
5569-
5570-
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5573-
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5576- HB1056 Engrossed - 156 - LRB104 03146 SPS 13167 b
5577-1 (iii) provide that all costs associated with
5578-2 the initial clean coal facility will be
5579-3 periodically reported to the Federal Energy
5580-4 Regulatory Commission and to purchasers in
5581-5 accordance with applicable laws governing
5582-6 cost-based wholesale power contracts;
5583-7 (iv) permit the Illinois Power Agency to
5584-8 assume ownership of the initial clean coal
5585-9 facility, without monetary consideration and
5586-10 otherwise on reasonable terms acceptable to the
5587-11 Agency, if the Agency so requests no less than 3
5588-12 years prior to the end of the stated contract
5589-13 term;
5590-14 (v) require the owner of the initial clean
5591-15 coal facility to provide documentation to the
5592-16 Commission each year, starting in the facility's
5593-17 first year of commercial operation, accurately
5594-18 reporting the quantity of carbon emissions from
5595-19 the facility that have been captured and
5596-20 sequestered and report any quantities of carbon
5597-21 released from the site or sites at which carbon
5598-22 emissions were sequestered in prior years, based
5599-23 on continuous monitoring of such sites. If, in any
5600-24 year after the first year of commercial operation,
5601-25 the owner of the facility fails to demonstrate
5602-26 that the initial clean coal facility captured and
5603-
5604-
5605-
5606-
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5609-
5610-
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5612- HB1056 Engrossed - 157 - LRB104 03146 SPS 13167 b
5613-1 sequestered at least 50% of the total carbon
5614-2 emissions that the facility would otherwise emit
5615-3 or that sequestration of emissions from prior
5616-4 years has failed, resulting in the release of
5617-5 carbon dioxide into the atmosphere, the owner of
5618-6 the facility must offset excess emissions. Any
5619-7 such carbon offsets must be permanent, additional,
5620-8 verifiable, real, located within the State of
5621-9 Illinois, and legally and practicably enforceable.
5622-10 The cost of such offsets for the facility that are
5623-11 not recoverable shall not exceed $15 million in
5624-12 any given year. No costs of any such purchases of
5625-13 carbon offsets may be recovered from a utility or
5626-14 its customers. All carbon offsets purchased for
5627-15 this purpose and any carbon emission credits
5628-16 associated with sequestration of carbon from the
5629-17 facility must be permanently retired. The initial
5630-18 clean coal facility shall not forfeit its
5631-19 designation as a clean coal facility if the
5632-20 facility fails to fully comply with the applicable
5633-21 carbon sequestration requirements in any given
5634-22 year, provided the requisite offsets are
5635-23 purchased. However, the Attorney General, on
5636-24 behalf of the People of the State of Illinois, may
5637-25 specifically enforce the facility's sequestration
5638-26 requirement and the other terms of this contract
5639-
5640-
5641-
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5645-
5646-
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5648- HB1056 Engrossed - 158 - LRB104 03146 SPS 13167 b
5649-1 provision. Compliance with the sequestration
5650-2 requirements and offset purchase requirements
5651-3 specified in paragraph (3) of this subsection (d)
5652-4 shall be reviewed annually by an independent
5653-5 expert retained by the owner of the initial clean
5654-6 coal facility, with the advance written approval
5655-7 of the Attorney General. The Commission may, in
5656-8 the course of the review specified in item (vii),
5657-9 reduce the allowable return on equity for the
5658-10 facility if the facility willfully fails to comply
5659-11 with the carbon capture and sequestration
5660-12 requirements set forth in this item (v);
5661-13 (vi) include limits on, and accordingly
5662-14 provide for modification of, the amount the
5663-15 utility is required to source under the sourcing
5664-16 agreement consistent with paragraph (2) of this
5665-17 subsection (d);
5666-18 (vii) require Commission review: (1) to
5667-19 determine the justness, reasonableness, and
5668-20 prudence of the inputs to the formula referenced
5669-21 in subparagraphs (A)(i) through (A)(iii) of
5670-22 paragraph (3) of this subsection (d), prior to an
5671-23 adjustment in those inputs including, without
5672-24 limitation, the capital structure and return on
5673-25 equity, fuel costs, and other operations and
5674-26 maintenance costs and (2) to approve the costs to
5675-
5676-
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5681-
5682-
5683-HB1056 Engrossed- 159 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 159 - LRB104 03146 SPS 13167 b
5684- HB1056 Engrossed - 159 - LRB104 03146 SPS 13167 b
5685-1 be passed through to customers under the sourcing
5686-2 agreement by which the utility satisfies its
5687-3 statutory obligations. Commission review shall
5688-4 occur no less than every 3 years, regardless of
5689-5 whether any adjustments have been proposed, and
5690-6 shall be completed within 9 months;
5691-7 (viii) limit the utility's obligation to such
5692-8 amount as the utility is allowed to recover
5693-9 through tariffs filed with the Commission,
5694-10 provided that neither the clean coal facility nor
5695-11 the utility waives any right to assert federal
5696-12 pre-emption or any other argument in response to a
5697-13 purported disallowance of recovery costs;
5698-14 (ix) limit the utility's or alternative retail
5699-15 electric supplier's obligation to incur any
5700-16 liability until such time as the facility is in
5701-17 commercial operation and generating power and
5702-18 energy and such power and energy is being
5703-19 delivered to the facility busbar;
5704-20 (x) provide that the owner or owners of the
5705-21 initial clean coal facility, which is the
5706-22 counterparty to such sourcing agreement, shall
5707-23 have the right from time to time to elect whether
5708-24 the obligations of the utility party thereto shall
5709-25 be governed by the power purchase provisions or
5710-26 the contract for differences provisions;
5711-
5712-
5713-
5714-
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5717-
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5720- HB1056 Engrossed - 160 - LRB104 03146 SPS 13167 b
5721-1 (xi) append documentation showing that the
5722-2 formula rate and contract, insofar as they relate
5723-3 to the power purchase provisions, have been
5724-4 approved by the Federal Energy Regulatory
5725-5 Commission pursuant to Section 205 of the Federal
5726-6 Power Act;
5727-7 (xii) provide that any changes to the terms of
5728-8 the contract, insofar as such changes relate to
5729-9 the power purchase provisions, are subject to
5730-10 review under the public interest standard applied
5731-11 by the Federal Energy Regulatory Commission
5732-12 pursuant to Sections 205 and 206 of the Federal
5733-13 Power Act; and
5734-14 (xiii) conform with customary lender
5735-15 requirements in power purchase agreements used as
5736-16 the basis for financing non-utility generators.
5737-17 (4) Effective date of sourcing agreements with the
5738-18 initial clean coal facility. Any proposed sourcing
5739-19 agreement with the initial clean coal facility shall not
5740-20 become effective unless the following reports are prepared
5741-21 and submitted and authorizations and approvals obtained:
5742-22 (i) Facility cost report. The owner of the initial
5743-23 clean coal facility shall submit to the Commission,
5744-24 the Agency, and the General Assembly a front-end
5745-25 engineering and design study, a facility cost report,
5746-26 method of financing (including but not limited to
5747-
5748-
5749-
5750-
5751-
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5753-
5754-
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5756- HB1056 Engrossed - 161 - LRB104 03146 SPS 13167 b
5757-1 structure and associated costs), and an operating and
5758-2 maintenance cost quote for the facility (collectively
5759-3 "facility cost report"), which shall be prepared in
5760-4 accordance with the requirements of this paragraph (4)
5761-5 of subsection (d) of this Section, and shall provide
5762-6 the Commission and the Agency access to the work
5763-7 papers, relied upon documents, and any other backup
5764-8 documentation related to the facility cost report.
5765-9 (ii) Commission report. Within 6 months following
5766-10 receipt of the facility cost report, the Commission,
5767-11 in consultation with the Agency, shall submit a report
5768-12 to the General Assembly setting forth its analysis of
5769-13 the facility cost report. Such report shall include,
5770-14 but not be limited to, a comparison of the costs
5771-15 associated with electricity generated by the initial
5772-16 clean coal facility to the costs associated with
5773-17 electricity generated by other types of generation
5774-18 facilities, an analysis of the rate impacts on
5775-19 residential and small business customers over the life
5776-20 of the sourcing agreements, and an analysis of the
5777-21 likelihood that the initial clean coal facility will
5778-22 commence commercial operation by and be delivering
5779-23 power to the facility's busbar by 2016. To assist in
5780-24 the preparation of its report, the Commission, in
5781-25 consultation with the Agency, may hire one or more
5782-26 experts or consultants, the costs of which shall be
5783-
5784-
5785-
5786-
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5789-
5790-
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5792- HB1056 Engrossed - 162 - LRB104 03146 SPS 13167 b
5793-1 paid for by the owner of the initial clean coal
5794-2 facility. The Commission and Agency may begin the
5795-3 process of selecting such experts or consultants prior
5796-4 to receipt of the facility cost report.
5797-5 (iii) General Assembly approval. The proposed
5798-6 sourcing agreements shall not take effect unless,
5799-7 based on the facility cost report and the Commission's
5800-8 report, the General Assembly enacts authorizing
5801-9 legislation approving (A) the projected price, stated
5802-10 in cents per kilowatthour, to be charged for
5803-11 electricity generated by the initial clean coal
5804-12 facility, (B) the projected impact on residential and
5805-13 small business customers' bills over the life of the
5806-14 sourcing agreements, and (C) the maximum allowable
5807-15 return on equity for the project; and
5808-16 (iv) Commission review. If the General Assembly
5809-17 enacts authorizing legislation pursuant to
5810-18 subparagraph (iii) approving a sourcing agreement, the
5811-19 Commission shall, within 90 days of such enactment,
5812-20 complete a review of such sourcing agreement. During
5813-21 such time period, the Commission shall implement any
5814-22 directive of the General Assembly, resolve any
5815-23 disputes between the parties to the sourcing agreement
5816-24 concerning the terms of such agreement, approve the
5817-25 form of such agreement, and issue an order finding
5818-26 that the sourcing agreement is prudent and reasonable.
5819-
5820-
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5825-
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5828- HB1056 Engrossed - 163 - LRB104 03146 SPS 13167 b
5829-1 The facility cost report shall be prepared as follows:
5830-2 (A) The facility cost report shall be prepared by
5831-3 duly licensed engineering and construction firms
5832-4 detailing the estimated capital costs payable to one
5833-5 or more contractors or suppliers for the engineering,
5834-6 procurement and construction of the components
5835-7 comprising the initial clean coal facility and the
5836-8 estimated costs of operation and maintenance of the
5837-9 facility. The facility cost report shall include:
5838-10 (i) an estimate of the capital cost of the
5839-11 core plant based on one or more front end
5840-12 engineering and design studies for the
5841-13 gasification island and related facilities. The
5842-14 core plant shall include all civil, structural,
5843-15 mechanical, electrical, control, and safety
5844-16 systems.
5845-17 (ii) an estimate of the capital cost of the
5846-18 balance of the plant, including any capital costs
5847-19 associated with sequestration of carbon dioxide
5848-20 emissions and all interconnects and interfaces
5849-21 required to operate the facility, such as
5850-22 transmission of electricity, construction or
5851-23 backfeed power supply, pipelines to transport
5852-24 substitute natural gas or carbon dioxide, potable
5853-25 water supply, natural gas supply, water supply,
5854-26 water discharge, landfill, access roads, and coal
5855-
5856-
5857-
5858-
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5861-
5862-
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5864- HB1056 Engrossed - 164 - LRB104 03146 SPS 13167 b
5865-1 delivery.
5866-2 The quoted construction costs shall be expressed
5867-3 in nominal dollars as of the date that the quote is
5868-4 prepared and shall include capitalized financing costs
5869-5 during construction, taxes, insurance, and other
5870-6 owner's costs, and an assumed escalation in materials
5871-7 and labor beyond the date as of which the construction
5872-8 cost quote is expressed.
5873-9 (B) The front end engineering and design study for
5874-10 the gasification island and the cost study for the
5875-11 balance of plant shall include sufficient design work
5876-12 to permit quantification of major categories of
5877-13 materials, commodities and labor hours, and receipt of
5878-14 quotes from vendors of major equipment required to
5879-15 construct and operate the clean coal facility.
5880-16 (C) The facility cost report shall also include an
5881-17 operating and maintenance cost quote that will provide
5882-18 the estimated cost of delivered fuel, personnel,
5883-19 maintenance contracts, chemicals, catalysts,
5884-20 consumables, spares, and other fixed and variable
5885-21 operations and maintenance costs. The delivered fuel
5886-22 cost estimate will be provided by a recognized third
5887-23 party expert or experts in the fuel and transportation
5888-24 industries. The balance of the operating and
5889-25 maintenance cost quote, excluding delivered fuel
5890-26 costs, will be developed based on the inputs provided
5891-
5892-
5893-
5894-
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5897-
5898-
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5900- HB1056 Engrossed - 165 - LRB104 03146 SPS 13167 b
5901-1 by duly licensed engineering and construction firms
5902-2 performing the construction cost quote, potential
5903-3 vendors under long-term service agreements and plant
5904-4 operating agreements, or recognized third party plant
5905-5 operator or operators.
5906-6 The operating and maintenance cost quote
5907-7 (including the cost of the front end engineering and
5908-8 design study) shall be expressed in nominal dollars as
5909-9 of the date that the quote is prepared and shall
5910-10 include taxes, insurance, and other owner's costs, and
5911-11 an assumed escalation in materials and labor beyond
5912-12 the date as of which the operating and maintenance
5913-13 cost quote is expressed.
5914-14 (D) The facility cost report shall also include an
5915-15 analysis of the initial clean coal facility's ability
5916-16 to deliver power and energy into the applicable
5917-17 regional transmission organization markets and an
5918-18 analysis of the expected capacity factor for the
5919-19 initial clean coal facility.
5920-20 (E) Amounts paid to third parties unrelated to the
5921-21 owner or owners of the initial clean coal facility to
5922-22 prepare the core plant construction cost quote,
5923-23 including the front end engineering and design study,
5924-24 and the operating and maintenance cost quote will be
5925-25 reimbursed through Coal Development Bonds.
5926-26 (5) Re-powering and retrofitting coal-fired power
5927-
5928-
5929-
5930-
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5933-
5934-
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5936- HB1056 Engrossed - 166 - LRB104 03146 SPS 13167 b
5937-1 plants previously owned by Illinois utilities to qualify
5938-2 as clean coal facilities. During the 2009 procurement
5939-3 planning process and thereafter, the Agency and the
5940-4 Commission shall consider sourcing agreements covering
5941-5 electricity generated by power plants that were previously
5942-6 owned by Illinois utilities and that have been or will be
5943-7 converted into clean coal facilities, as defined by
5944-8 Section 1-10 of this Act. Pursuant to such procurement
5945-9 planning process, the owners of such facilities may
5946-10 propose to the Agency sourcing agreements with utilities
5947-11 and alternative retail electric suppliers required to
5948-12 comply with subsection (d) of this Section and item (5) of
5949-13 subsection (d) of Section 16-115 of the Public Utilities
5950-14 Act, covering electricity generated by such facilities. In
5951-15 the case of sourcing agreements that are power purchase
5952-16 agreements, the contract price for electricity sales shall
5953-17 be established on a cost of service basis. In the case of
5954-18 sourcing agreements that are contracts for differences,
5955-19 the contract price from which the reference price is
5956-20 subtracted shall be established on a cost of service
5957-21 basis. The Agency and the Commission may approve any such
5958-22 utility sourcing agreements that do not exceed cost-based
5959-23 benchmarks developed by the procurement administrator, in
5960-24 consultation with the Commission staff, Agency staff and
5961-25 the procurement monitor, subject to Commission review and
5962-26 approval. The Commission shall have authority to inspect
5963-
5964-
5965-
5966-
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5969-
5970-
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5972- HB1056 Engrossed - 167 - LRB104 03146 SPS 13167 b
5973-1 all books and records associated with these clean coal
5974-2 facilities during the term of any such contract.
5975-3 (6) Costs incurred under this subsection (d) or
5976-4 pursuant to a contract entered into under this subsection
5977-5 (d) shall be deemed prudently incurred and reasonable in
5978-6 amount and the electric utility shall be entitled to full
5979-7 cost recovery pursuant to the tariffs filed with the
5980-8 Commission.
5981-9 (d-5) Zero emission standard.
5982-10 (1) Beginning with the delivery year commencing on
5983-11 June 1, 2017, the Agency shall, for electric utilities
5984-12 that serve at least 100,000 retail customers in this
5985-13 State, procure contracts with zero emission facilities
5986-14 that are reasonably capable of generating cost-effective
5987-15 zero emission credits in an amount approximately equal to
5988-16 16% of the actual amount of electricity delivered by each
5989-17 electric utility to retail customers in the State during
5990-18 calendar year 2014. For an electric utility serving fewer
5991-19 than 100,000 retail customers in this State that
5992-20 requested, under Section 16-111.5 of the Public Utilities
5993-21 Act, that the Agency procure power and energy for all or a
5994-22 portion of the utility's Illinois load for the delivery
5995-23 year commencing June 1, 2016, the Agency shall procure
5996-24 contracts with zero emission facilities that are
5997-25 reasonably capable of generating cost-effective zero
5998-26 emission credits in an amount approximately equal to 16%
5999-
6000-
6001-
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6005-
6006-
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6008- HB1056 Engrossed - 168 - LRB104 03146 SPS 13167 b
6009-1 of the portion of power and energy to be procured by the
6010-2 Agency for the utility. The duration of the contracts
6011-3 procured under this subsection (d-5) shall be for a term
6012-4 of 10 years ending May 31, 2027. The quantity of zero
6013-5 emission credits to be procured under the contracts shall
6014-6 be all of the zero emission credits generated by the zero
6015-7 emission facility in each delivery year; however, if the
6016-8 zero emission facility is owned by more than one entity,
6017-9 then the quantity of zero emission credits to be procured
6018-10 under the contracts shall be the amount of zero emission
6019-11 credits that are generated from the portion of the zero
6020-12 emission facility that is owned by the winning supplier.
6021-13 The 16% value identified in this paragraph (1) is the
6022-14 average of the percentage targets in subparagraph (B) of
6023-15 paragraph (1) of subsection (c) of this Section for the 5
6024-16 delivery years beginning June 1, 2017.
6025-17 The procurement process shall be subject to the
6026-18 following provisions:
6027-19 (A) Those zero emission facilities that intend to
6028-20 participate in the procurement shall submit to the
6029-21 Agency the following eligibility information for each
6030-22 zero emission facility on or before the date
6031-23 established by the Agency:
6032-24 (i) the in-service date and remaining useful
6033-25 life of the zero emission facility;
6034-26 (ii) the amount of power generated annually
6035-
6036-
6037-
6038-
6039-
6040- HB1056 Engrossed - 168 - LRB104 03146 SPS 13167 b
6041-
6042-
6043-HB1056 Engrossed- 169 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 169 - LRB104 03146 SPS 13167 b
6044- HB1056 Engrossed - 169 - LRB104 03146 SPS 13167 b
6045-1 for each of the years 2005 through 2015, and the
6046-2 projected zero emission credits to be generated
6047-3 over the remaining useful life of the zero
6048-4 emission facility, which shall be used to
6049-5 determine the capability of each facility;
6050-6 (iii) the annual zero emission facility cost
6051-7 projections, expressed on a per megawatthour
6052-8 basis, over the next 6 delivery years, which shall
6053-9 include the following: operation and maintenance
6054-10 expenses; fully allocated overhead costs, which
6055-11 shall be allocated using the methodology developed
6056-12 by the Institute for Nuclear Power Operations;
6057-13 fuel expenditures; non-fuel capital expenditures;
6058-14 spent fuel expenditures; a return on working
6059-15 capital; the cost of operational and market risks
6060-16 that could be avoided by ceasing operation; and
6061-17 any other costs necessary for continued
6062-18 operations, provided that "necessary" means, for
6063-19 purposes of this item (iii), that the costs could
6064-20 reasonably be avoided only by ceasing operations
6065-21 of the zero emission facility; and
6066-22 (iv) a commitment to continue operating, for
6067-23 the duration of the contract or contracts executed
6068-24 under the procurement held under this subsection
6069-25 (d-5), the zero emission facility that produces
6070-26 the zero emission credits to be procured in the
6071-
6072-
6073-
6074-
6075-
6076- HB1056 Engrossed - 169 - LRB104 03146 SPS 13167 b
6077-
6078-
6079-HB1056 Engrossed- 170 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 170 - LRB104 03146 SPS 13167 b
6080- HB1056 Engrossed - 170 - LRB104 03146 SPS 13167 b
6081-1 procurement.
6082-2 The information described in item (iii) of this
6083-3 subparagraph (A) may be submitted on a confidential
6084-4 basis and shall be treated and maintained by the
6085-5 Agency, the procurement administrator, and the
6086-6 Commission as confidential and proprietary and exempt
6087-7 from disclosure under subparagraphs (a) and (g) of
6088-8 paragraph (1) of Section 7 of the Freedom of
6089-9 Information Act. The Office of Attorney General shall
6090-10 have access to, and maintain the confidentiality of,
6091-11 such information pursuant to Section 6.5 of the
6092-12 Attorney General Act.
6093-13 (B) The price for each zero emission credit
6094-14 procured under this subsection (d-5) for each delivery
6095-15 year shall be in an amount that equals the Social Cost
6096-16 of Carbon, expressed on a price per megawatthour
6097-17 basis. However, to ensure that the procurement remains
6098-18 affordable to retail customers in this State if
6099-19 electricity prices increase, the price in an
6100-20 applicable delivery year shall be reduced below the
6101-21 Social Cost of Carbon by the amount ("Price
6102-22 Adjustment") by which the market price index for the
6103-23 applicable delivery year exceeds the baseline market
6104-24 price index for the consecutive 12-month period ending
6105-25 May 31, 2016. If the Price Adjustment is greater than
6106-26 or equal to the Social Cost of Carbon in an applicable
6107-
6108-
6109-
6110-
6111-
6112- HB1056 Engrossed - 170 - LRB104 03146 SPS 13167 b
6113-
6114-
6115-HB1056 Engrossed- 171 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 171 - LRB104 03146 SPS 13167 b
6116- HB1056 Engrossed - 171 - LRB104 03146 SPS 13167 b
6117-1 delivery year, then no payments shall be due in that
6118-2 delivery year. The components of this calculation are
6119-3 defined as follows:
6120-4 (i) Social Cost of Carbon: The Social Cost of
6121-5 Carbon is $16.50 per megawatthour, which is based
6122-6 on the U.S. Interagency Working Group on Social
6123-7 Cost of Carbon's price in the August 2016
6124-8 Technical Update using a 3% discount rate,
6125-9 adjusted for inflation for each year of the
6126-10 program. Beginning with the delivery year
6127-11 commencing June 1, 2023, the price per
6128-12 megawatthour shall increase by $1 per
6129-13 megawatthour, and continue to increase by an
6130-14 additional $1 per megawatthour each delivery year
6131-15 thereafter.
6132-16 (ii) Baseline market price index: The baseline
6133-17 market price index for the consecutive 12-month
6134-18 period ending May 31, 2016 is $31.40 per
6135-19 megawatthour, which is based on the sum of (aa)
6136-20 the average day-ahead energy price across all
6137-21 hours of such 12-month period at the PJM
6138-22 Interconnection LLC Northern Illinois Hub, (bb)
6139-23 50% multiplied by the Base Residual Auction, or
6140-24 its successor, capacity price for the rest of the
6141-25 RTO zone group determined by PJM Interconnection
6142-26 LLC, divided by 24 hours per day, and (cc) 50%
6143-
6144-
6145-
6146-
6147-
6148- HB1056 Engrossed - 171 - LRB104 03146 SPS 13167 b
6149-
6150-
6151-HB1056 Engrossed- 172 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 172 - LRB104 03146 SPS 13167 b
6152- HB1056 Engrossed - 172 - LRB104 03146 SPS 13167 b
6153-1 multiplied by the Planning Resource Auction, or
6154-2 its successor, capacity price for Zone 4
6155-3 determined by the Midcontinent Independent System
6156-4 Operator, Inc., divided by 24 hours per day.
6157-5 (iii) Market price index: The market price
6158-6 index for a delivery year shall be the sum of
6159-7 projected energy prices and projected capacity
6160-8 prices determined as follows:
6161-9 (aa) Projected energy prices: the
6162-10 projected energy prices for the applicable
6163-11 delivery year shall be calculated once for the
6164-12 year using the forward market price for the
6165-13 PJM Interconnection, LLC Northern Illinois
6166-14 Hub. The forward market price shall be
6167-15 calculated as follows: the energy forward
6168-16 prices for each month of the applicable
6169-17 delivery year averaged for each trade date
6170-18 during the calendar year immediately preceding
6171-19 that delivery year to produce a single energy
6172-20 forward price for the delivery year. The
6173-21 forward market price calculation shall use
6174-22 data published by the Intercontinental
6175-23 Exchange, or its successor.
6176-24 (bb) Projected capacity prices:
6177-25 (I) For the delivery years commencing
6178-26 June 1, 2017, June 1, 2018, and June 1,
6179-
6180-
6181-
6182-
6183-
6184- HB1056 Engrossed - 172 - LRB104 03146 SPS 13167 b
6185-
6186-
6187-HB1056 Engrossed- 173 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 173 - LRB104 03146 SPS 13167 b
6188- HB1056 Engrossed - 173 - LRB104 03146 SPS 13167 b
6189-1 2019, the projected capacity price shall
6190-2 be equal to the sum of (1) 50% multiplied
6191-3 by the Base Residual Auction, or its
6192-4 successor, price for the rest of the RTO
6193-5 zone group as determined by PJM
6194-6 Interconnection LLC, divided by 24 hours
6195-7 per day and, (2) 50% multiplied by the
6196-8 resource auction price determined in the
6197-9 resource auction administered by the
6198-10 Midcontinent Independent System Operator,
6199-11 Inc., in which the largest percentage of
6200-12 load cleared for Local Resource Zone 4,
6201-13 divided by 24 hours per day, and where
6202-14 such price is determined by the
6203-15 Midcontinent Independent System Operator,
6204-16 Inc.
6205-17 (II) For the delivery year commencing
6206-18 June 1, 2020, and each year thereafter,
6207-19 the projected capacity price shall be
6208-20 equal to the sum of (1) 50% multiplied by
6209-21 the Base Residual Auction, or its
6210-22 successor, price for the ComEd zone as
6211-23 determined by PJM Interconnection LLC,
6212-24 divided by 24 hours per day, and (2) 50%
6213-25 multiplied by the resource auction price
6214-26 determined in the resource auction
6215-
6216-
6217-
6218-
6219-
6220- HB1056 Engrossed - 173 - LRB104 03146 SPS 13167 b
6221-
6222-
6223-HB1056 Engrossed- 174 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 174 - LRB104 03146 SPS 13167 b
6224- HB1056 Engrossed - 174 - LRB104 03146 SPS 13167 b
6225-1 administered by the Midcontinent
6226-2 Independent System Operator, Inc., in
6227-3 which the largest percentage of load
6228-4 cleared for Local Resource Zone 4, divided
6229-5 by 24 hours per day, and where such price
6230-6 is determined by the Midcontinent
6231-7 Independent System Operator, Inc.
6232-8 For purposes of this subsection (d-5):
6233-9 "Rest of the RTO" and "ComEd Zone" shall have
6234-10 the meaning ascribed to them by PJM
6235-11 Interconnection, LLC.
6236-12 "RTO" means regional transmission
6237-13 organization.
6238-14 (C) No later than 45 days after June 1, 2017 (the
6239-15 effective date of Public Act 99-906), the Agency shall
6240-16 publish its proposed zero emission standard
6241-17 procurement plan. The plan shall be consistent with
6242-18 the provisions of this paragraph (1) and shall provide
6243-19 that winning bids shall be selected based on public
6244-20 interest criteria that include, but are not limited
6245-21 to, minimizing carbon dioxide emissions that result
6246-22 from electricity consumed in Illinois and minimizing
6247-23 sulfur dioxide, nitrogen oxide, and particulate matter
6248-24 emissions that adversely affect the citizens of this
6249-25 State. In particular, the selection of winning bids
6250-26 shall take into account the incremental environmental
6251-
6252-
6253-
6254-
6255-
6256- HB1056 Engrossed - 174 - LRB104 03146 SPS 13167 b
6257-
6258-
6259-HB1056 Engrossed- 175 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 175 - LRB104 03146 SPS 13167 b
6260- HB1056 Engrossed - 175 - LRB104 03146 SPS 13167 b
6261-1 benefits resulting from the procurement, such as any
6262-2 existing environmental benefits that are preserved by
6263-3 the procurements held under Public Act 99-906 and
6264-4 would cease to exist if the procurements were not
6265-5 held, including the preservation of zero emission
6266-6 facilities. The plan shall also describe in detail how
6267-7 each public interest factor shall be considered and
6268-8 weighted in the bid selection process to ensure that
6269-9 the public interest criteria are applied to the
6270-10 procurement and given full effect.
6271-11 For purposes of developing the plan, the Agency
6272-12 shall consider any reports issued by a State agency,
6273-13 board, or commission under House Resolution 1146 of
6274-14 the 98th General Assembly and paragraph (4) of
6275-15 subsection (d) of this Section, as well as publicly
6276-16 available analyses and studies performed by or for
6277-17 regional transmission organizations that serve the
6278-18 State and their independent market monitors.
6279-19 Upon publishing of the zero emission standard
6280-20 procurement plan, copies of the plan shall be posted
6281-21 and made publicly available on the Agency's website.
6282-22 All interested parties shall have 10 days following
6283-23 the date of posting to provide comment to the Agency on
6284-24 the plan. All comments shall be posted to the Agency's
6285-25 website. Following the end of the comment period, but
6286-26 no more than 60 days later than June 1, 2017 (the
6287-
6288-
6289-
6290-
6291-
6292- HB1056 Engrossed - 175 - LRB104 03146 SPS 13167 b
6293-
6294-
6295-HB1056 Engrossed- 176 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 176 - LRB104 03146 SPS 13167 b
6296- HB1056 Engrossed - 176 - LRB104 03146 SPS 13167 b
6297-1 effective date of Public Act 99-906), the Agency shall
6298-2 revise the plan as necessary based on the comments
6299-3 received and file its zero emission standard
6300-4 procurement plan with the Commission.
6301-5 If the Commission determines that the plan will
6302-6 result in the procurement of cost-effective zero
6303-7 emission credits, then the Commission shall, after
6304-8 notice and hearing, but no later than 45 days after the
6305-9 Agency filed the plan, approve the plan or approve
6306-10 with modification. For purposes of this subsection
6307-11 (d-5), "cost effective" means the projected costs of
6308-12 procuring zero emission credits from zero emission
6309-13 facilities do not cause the limit stated in paragraph
6310-14 (2) of this subsection to be exceeded.
6311-15 (C-5) As part of the Commission's review and
6312-16 acceptance or rejection of the procurement results,
6313-17 the Commission shall, in its public notice of
6314-18 successful bidders:
6315-19 (i) identify how the winning bids satisfy the
6316-20 public interest criteria described in subparagraph
6317-21 (C) of this paragraph (1) of minimizing carbon
6318-22 dioxide emissions that result from electricity
6319-23 consumed in Illinois and minimizing sulfur
6320-24 dioxide, nitrogen oxide, and particulate matter
6321-25 emissions that adversely affect the citizens of
6322-26 this State;
6323-
6324-
6325-
6326-
6327-
6328- HB1056 Engrossed - 176 - LRB104 03146 SPS 13167 b
6329-
6330-
6331-HB1056 Engrossed- 177 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 177 - LRB104 03146 SPS 13167 b
6332- HB1056 Engrossed - 177 - LRB104 03146 SPS 13167 b
6333-1 (ii) specifically address how the selection of
6334-2 winning bids takes into account the incremental
6335-3 environmental benefits resulting from the
6336-4 procurement, including any existing environmental
6337-5 benefits that are preserved by the procurements
6338-6 held under Public Act 99-906 and would have ceased
6339-7 to exist if the procurements had not been held,
6340-8 such as the preservation of zero emission
6341-9 facilities;
6342-10 (iii) quantify the environmental benefit of
6343-11 preserving the resources identified in item (ii)
6344-12 of this subparagraph (C-5), including the
6345-13 following:
6346-14 (aa) the value of avoided greenhouse gas
6347-15 emissions measured as the product of the zero
6348-16 emission facilities' output over the contract
6349-17 term multiplied by the U.S. Environmental
6350-18 Protection Agency eGrid subregion carbon
6351-19 dioxide emission rate and the U.S. Interagency
6352-20 Working Group on Social Cost of Carbon's price
6353-21 in the August 2016 Technical Update using a 3%
6354-22 discount rate, adjusted for inflation for each
6355-23 delivery year; and
6356-24 (bb) the costs of replacement with other
6357-25 zero carbon dioxide resources, including wind
6358-26 and photovoltaic, based upon the simple
6359-
6360-
6361-
6362-
6363-
6364- HB1056 Engrossed - 177 - LRB104 03146 SPS 13167 b
6365-
6366-
6367-HB1056 Engrossed- 178 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 178 - LRB104 03146 SPS 13167 b
6368- HB1056 Engrossed - 178 - LRB104 03146 SPS 13167 b
6369-1 average of the following:
6370-2 (I) the price, or if there is more
6371-3 than one price, the average of the prices,
6372-4 paid for renewable energy credits from new
6373-5 utility-scale wind projects in the
6374-6 procurement events specified in item (i)
6375-7 of subparagraph (G) of paragraph (1) of
6376-8 subsection (c) of this Section; and
6377-9 (II) the price, or if there is more
6378-10 than one price, the average of the prices,
6379-11 paid for renewable energy credits from new
6380-12 utility-scale solar projects and
6381-13 brownfield site photovoltaic projects in
6382-14 the procurement events specified in item
6383-15 (ii) of subparagraph (G) of paragraph (1)
6384-16 of subsection (c) of this Section and,
6385-17 after January 1, 2015, renewable energy
6386-18 credits from photovoltaic distributed
6387-19 generation projects in procurement events
6388-20 held under subsection (c) of this Section.
6389-21 Each utility shall enter into binding contractual
6390-22 arrangements with the winning suppliers.
6391-23 The procurement described in this subsection
6392-24 (d-5), including, but not limited to, the execution of
6393-25 all contracts procured, shall be completed no later
6394-26 than May 10, 2017. Based on the effective date of
6395-
6396-
6397-
6398-
6399-
6400- HB1056 Engrossed - 178 - LRB104 03146 SPS 13167 b
6401-
6402-
6403-HB1056 Engrossed- 179 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 179 - LRB104 03146 SPS 13167 b
6404- HB1056 Engrossed - 179 - LRB104 03146 SPS 13167 b
6405-1 Public Act 99-906, the Agency and Commission may, as
6406-2 appropriate, modify the various dates and timelines
6407-3 under this subparagraph and subparagraphs (C) and (D)
6408-4 of this paragraph (1). The procurement and plan
6409-5 approval processes required by this subsection (d-5)
6410-6 shall be conducted in conjunction with the procurement
6411-7 and plan approval processes required by subsection (c)
6412-8 of this Section and Section 16-111.5 of the Public
6413-9 Utilities Act, to the extent practicable.
6414-10 Notwithstanding whether a procurement event is
6415-11 conducted under Section 16-111.5 of the Public
6416-12 Utilities Act, the Agency shall immediately initiate a
6417-13 procurement process on June 1, 2017 (the effective
6418-14 date of Public Act 99-906).
6419-15 (D) Following the procurement event described in
6420-16 this paragraph (1) and consistent with subparagraph
6421-17 (B) of this paragraph (1), the Agency shall calculate
6422-18 the payments to be made under each contract for the
6423-19 next delivery year based on the market price index for
6424-20 that delivery year. The Agency shall publish the
6425-21 payment calculations no later than May 25, 2017 and
6426-22 every May 25 thereafter.
6427-23 (E) Notwithstanding the requirements of this
6428-24 subsection (d-5), the contracts executed under this
6429-25 subsection (d-5) shall provide that the zero emission
6430-26 facility may, as applicable, suspend or terminate
6431-
6432-
6433-
6434-
6435-
6436- HB1056 Engrossed - 179 - LRB104 03146 SPS 13167 b
6437-
6438-
6439-HB1056 Engrossed- 180 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 180 - LRB104 03146 SPS 13167 b
6440- HB1056 Engrossed - 180 - LRB104 03146 SPS 13167 b
6441-1 performance under the contracts in the following
6442-2 instances:
6443-3 (i) A zero emission facility shall be excused
6444-4 from its performance under the contract for any
6445-5 cause beyond the control of the resource,
6446-6 including, but not restricted to, acts of God,
6447-7 flood, drought, earthquake, storm, fire,
6448-8 lightning, epidemic, war, riot, civil disturbance
6449-9 or disobedience, labor dispute, labor or material
6450-10 shortage, sabotage, acts of public enemy,
6451-11 explosions, orders, regulations or restrictions
6452-12 imposed by governmental, military, or lawfully
6453-13 established civilian authorities, which, in any of
6454-14 the foregoing cases, by exercise of commercially
6455-15 reasonable efforts the zero emission facility
6456-16 could not reasonably have been expected to avoid,
6457-17 and which, by the exercise of commercially
6458-18 reasonable efforts, it has been unable to
6459-19 overcome. In such event, the zero emission
6460-20 facility shall be excused from performance for the
6461-21 duration of the event, including, but not limited
6462-22 to, delivery of zero emission credits, and no
6463-23 payment shall be due to the zero emission facility
6464-24 during the duration of the event.
6465-25 (ii) A zero emission facility shall be
6466-26 permitted to terminate the contract if legislation
6467-
6468-
6469-
6470-
6471-
6472- HB1056 Engrossed - 180 - LRB104 03146 SPS 13167 b
6473-
6474-
6475-HB1056 Engrossed- 181 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 181 - LRB104 03146 SPS 13167 b
6476- HB1056 Engrossed - 181 - LRB104 03146 SPS 13167 b
6477-1 is enacted into law by the General Assembly that
6478-2 imposes or authorizes a new tax, special
6479-3 assessment, or fee on the generation of
6480-4 electricity, the ownership or leasehold of a
6481-5 generating unit, or the privilege or occupation of
6482-6 such generation, ownership, or leasehold of
6483-7 generation units by a zero emission facility.
6484-8 However, the provisions of this item (ii) do not
6485-9 apply to any generally applicable tax, special
6486-10 assessment or fee, or requirements imposed by
6487-11 federal law.
6488-12 (iii) A zero emission facility shall be
6489-13 permitted to terminate the contract in the event
6490-14 that the resource requires capital expenditures in
6491-15 excess of $40,000,000 that were neither known nor
6492-16 reasonably foreseeable at the time it executed the
6493-17 contract and that a prudent owner or operator of
6494-18 such resource would not undertake.
6495-19 (iv) A zero emission facility shall be
6496-20 permitted to terminate the contract in the event
6497-21 the Nuclear Regulatory Commission terminates the
6498-22 resource's license.
6499-23 (F) If the zero emission facility elects to
6500-24 terminate a contract under subparagraph (E) of this
6501-25 paragraph (1), then the Commission shall reopen the
6502-26 docket in which the Commission approved the zero
6503-
6504-
6505-
6506-
6507-
6508- HB1056 Engrossed - 181 - LRB104 03146 SPS 13167 b
6509-
6510-
6511-HB1056 Engrossed- 182 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 182 - LRB104 03146 SPS 13167 b
6512- HB1056 Engrossed - 182 - LRB104 03146 SPS 13167 b
6513-1 emission standard procurement plan under subparagraph
6514-2 (C) of this paragraph (1) and, after notice and
6515-3 hearing, enter an order acknowledging the contract
6516-4 termination election if such termination is consistent
6517-5 with the provisions of this subsection (d-5).
6518-6 (2) For purposes of this subsection (d-5), the amount
6519-7 paid per kilowatthour means the total amount paid for
6520-8 electric service expressed on a per kilowatthour basis.
6521-9 For purposes of this subsection (d-5), the total amount
6522-10 paid for electric service includes, without limitation,
6523-11 amounts paid for supply, transmission, distribution,
6524-12 surcharges, and add-on taxes.
6525-13 Notwithstanding the requirements of this subsection
6526-14 (d-5), the contracts executed under this subsection (d-5)
6527-15 shall provide that the total of zero emission credits
6528-16 procured under a procurement plan shall be subject to the
6529-17 limitations of this paragraph (2). For each delivery year,
6530-18 the contractual volume receiving payments in such year
6531-19 shall be reduced for all retail customers based on the
6532-20 amount necessary to limit the net increase that delivery
6533-21 year to the costs of those credits included in the amounts
6534-22 paid by eligible retail customers in connection with
6535-23 electric service to no more than 1.65% of the amount paid
6536-24 per kilowatthour by eligible retail customers during the
6537-25 year ending May 31, 2009. The result of this computation
6538-26 shall apply to and reduce the procurement for all retail
6539-
6540-
6541-
6542-
6543-
6544- HB1056 Engrossed - 182 - LRB104 03146 SPS 13167 b
6545-
6546-
6547-HB1056 Engrossed- 183 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 183 - LRB104 03146 SPS 13167 b
6548- HB1056 Engrossed - 183 - LRB104 03146 SPS 13167 b
6549-1 customers, and all those customers shall pay the same
6550-2 single, uniform cents per kilowatthour charge under
6551-3 subsection (k) of Section 16-108 of the Public Utilities
6552-4 Act. To arrive at a maximum dollar amount of zero emission
6553-5 credits to be paid for the particular delivery year, the
6554-6 resulting per kilowatthour amount shall be applied to the
6555-7 actual amount of kilowatthours of electricity delivered by
6556-8 the electric utility in the delivery year immediately
6557-9 prior to the procurement, to all retail customers in its
6558-10 service territory. Unpaid contractual volume for any
6559-11 delivery year shall be paid in any subsequent delivery
6560-12 year in which such payments can be made without exceeding
6561-13 the amount specified in this paragraph (2). The
6562-14 calculations required by this paragraph (2) shall be made
6563-15 only once for each procurement plan year. Once the
6564-16 determination as to the amount of zero emission credits to
6565-17 be paid is made based on the calculations set forth in this
6566-18 paragraph (2), no subsequent rate impact determinations
6567-19 shall be made and no adjustments to those contract amounts
6568-20 shall be allowed. All costs incurred under those contracts
6569-21 and in implementing this subsection (d-5) shall be
6570-22 recovered by the electric utility as provided in this
6571-23 Section.
6572-24 No later than June 30, 2019, the Commission shall
6573-25 review the limitation on the amount of zero emission
6574-26 credits procured under this subsection (d-5) and report to
6575-
6576-
6577-
6578-
6579-
6580- HB1056 Engrossed - 183 - LRB104 03146 SPS 13167 b
6581-
6582-
6583-HB1056 Engrossed- 184 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 184 - LRB104 03146 SPS 13167 b
6584- HB1056 Engrossed - 184 - LRB104 03146 SPS 13167 b
6585-1 the General Assembly its findings as to whether that
6586-2 limitation unduly constrains the procurement of
6587-3 cost-effective zero emission credits.
6588-4 (3) Six years after the execution of a contract under
6589-5 this subsection (d-5), the Agency shall determine whether
6590-6 the actual zero emission credit payments received by the
6591-7 supplier over the 6-year period exceed the Average ZEC
6592-8 Payment. In addition, at the end of the term of a contract
6593-9 executed under this subsection (d-5), or at the time, if
6594-10 any, a zero emission facility's contract is terminated
6595-11 under subparagraph (E) of paragraph (1) of this subsection
6596-12 (d-5), then the Agency shall determine whether the actual
6597-13 zero emission credit payments received by the supplier
6598-14 over the term of the contract exceed the Average ZEC
6599-15 Payment, after taking into account any amounts previously
6600-16 credited back to the utility under this paragraph (3). If
6601-17 the Agency determines that the actual zero emission credit
6602-18 payments received by the supplier over the relevant period
6603-19 exceed the Average ZEC Payment, then the supplier shall
6604-20 credit the difference back to the utility. The amount of
6605-21 the credit shall be remitted to the applicable electric
6606-22 utility no later than 120 days after the Agency's
6607-23 determination, which the utility shall reflect as a credit
6608-24 on its retail customer bills as soon as practicable;
6609-25 however, the credit remitted to the utility shall not
6610-26 exceed the total amount of payments received by the
6611-
6612-
6613-
6614-
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6617-
6618-
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6620- HB1056 Engrossed - 185 - LRB104 03146 SPS 13167 b
6621-1 facility under its contract.
6622-2 For purposes of this Section, the Average ZEC Payment
6623-3 shall be calculated by multiplying the quantity of zero
6624-4 emission credits delivered under the contract times the
6625-5 average contract price. The average contract price shall
6626-6 be determined by subtracting the amount calculated under
6627-7 subparagraph (B) of this paragraph (3) from the amount
6628-8 calculated under subparagraph (A) of this paragraph (3),
6629-9 as follows:
6630-10 (A) The average of the Social Cost of Carbon, as
6631-11 defined in subparagraph (B) of paragraph (1) of this
6632-12 subsection (d-5), during the term of the contract.
6633-13 (B) The average of the market price indices, as
6634-14 defined in subparagraph (B) of paragraph (1) of this
6635-15 subsection (d-5), during the term of the contract,
6636-16 minus the baseline market price index, as defined in
6637-17 subparagraph (B) of paragraph (1) of this subsection
6638-18 (d-5).
6639-19 If the subtraction yields a negative number, then the
6640-20 Average ZEC Payment shall be zero.
6641-21 (4) Cost-effective zero emission credits procured from
6642-22 zero emission facilities shall satisfy the applicable
6643-23 definitions set forth in Section 1-10 of this Act.
6644-24 (5) The electric utility shall retire all zero
6645-25 emission credits used to comply with the requirements of
6646-26 this subsection (d-5).
6647-
6648-
6649-
6650-
6651-
6652- HB1056 Engrossed - 185 - LRB104 03146 SPS 13167 b
6653-
6654-
6655-HB1056 Engrossed- 186 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 186 - LRB104 03146 SPS 13167 b
6656- HB1056 Engrossed - 186 - LRB104 03146 SPS 13167 b
6657-1 (6) Electric utilities shall be entitled to recover
6658-2 all of the costs associated with the procurement of zero
6659-3 emission credits through an automatic adjustment clause
6660-4 tariff in accordance with subsection (k) and (m) of
6661-5 Section 16-108 of the Public Utilities Act, and the
6662-6 contracts executed under this subsection (d-5) shall
6663-7 provide that the utilities' payment obligations under such
6664-8 contracts shall be reduced if an adjustment is required
6665-9 under subsection (m) of Section 16-108 of the Public
6666-10 Utilities Act.
6667-11 (7) This subsection (d-5) shall become inoperative on
6668-12 January 1, 2028.
6669-13 (d-10) Nuclear Plant Assistance; carbon mitigation
6670-14 credits.
6671-15 (1) The General Assembly finds:
6672-16 (A) The health, welfare, and prosperity of all
6673-17 Illinois citizens require that the State of Illinois act
6674-18 to avoid and not increase carbon emissions from electric
6675-19 generation sources while continuing to ensure affordable,
6676-20 stable, and reliable electricity to all citizens.
6677-21 (B) Absent immediate action by the State to preserve
6678-22 existing carbon-free energy resources, those resources may
6679-23 retire, and the electric generation needs of Illinois'
6680-24 retail customers may be met instead by facilities that
6681-25 emit significant amounts of carbon pollution and other
6682-26 harmful air pollutants at a high social and economic cost
6683-
6684-
6685-
6686-
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6688- HB1056 Engrossed - 186 - LRB104 03146 SPS 13167 b
6689-
6690-
6691-HB1056 Engrossed- 187 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 187 - LRB104 03146 SPS 13167 b
6692- HB1056 Engrossed - 187 - LRB104 03146 SPS 13167 b
6693-1 until Illinois is able to develop other forms of clean
6694-2 energy.
6695-3 (C) The General Assembly finds that nuclear power
6696-4 generation is necessary for the State's transition to 100%
6697-5 clean energy, and ensuring continued operation of nuclear
6698-6 plants advances environmental and public health interests
6699-7 through providing carbon-free electricity while reducing
6700-8 the air pollution profile of the Illinois energy
6701-9 generation fleet.
6702-10 (D) The clean energy attributes of nuclear generation
6703-11 facilities support the State in its efforts to achieve
6704-12 100% clean energy.
6705-13 (E) The State currently invests in various forms of
6706-14 clean energy, including, but not limited to, renewable
6707-15 energy, energy efficiency, and low-emission vehicles,
6708-16 among others.
6709-17 (F) The Environmental Protection Agency commissioned
6710-18 an independent audit which provided a detailed assessment
6711-19 of the financial condition of the Illinois nuclear fleet
6712-20 to evaluate its financial viability and whether the
6713-21 environmental benefits of such resources were at risk. The
6714-22 report identified the risk of losing the environmental
6715-23 benefits of several specific nuclear units. The report
6716-24 also identified that the LaSalle County Generating Station
6717-25 will continue to operate through 2026 and therefore is not
6718-26 eligible to participate in the carbon mitigation credit
6719-
6720-
6721-
6722-
6723-
6724- HB1056 Engrossed - 187 - LRB104 03146 SPS 13167 b
6725-
6726-
6727-HB1056 Engrossed- 188 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 188 - LRB104 03146 SPS 13167 b
6728- HB1056 Engrossed - 188 - LRB104 03146 SPS 13167 b
6729-1 program.
6730-2 (G) Nuclear plants provide carbon-free energy, which
6731-3 helps to avoid many health-related negative impacts for
6732-4 Illinois residents.
6733-5 (H) The procurement of carbon mitigation credits
6734-6 representing the environmental benefits of carbon-free
6735-7 generation will further the State's efforts at achieving
6736-8 100% clean energy and decarbonizing the electricity sector
6737-9 in a safe, reliable, and affordable manner. Further, the
6738-10 procurement of carbon emission credits will enhance the
6739-11 health and welfare of Illinois residents through decreased
6740-12 reliance on more highly polluting generation.
6741-13 (I) The General Assembly therefore finds it necessary
6742-14 to establish carbon mitigation credits to ensure decreased
6743-15 reliance on more carbon-intensive energy resources, for
6744-16 transitioning to a fully decarbonized electricity sector,
6745-17 and to help ensure health and welfare of the State's
6746-18 residents.
6747-19 (2) As used in this subsection:
6748-20 "Baseline costs" means costs used to establish a customer
6749-21 protection cap that have been evaluated through an independent
6750-22 audit of a carbon-free energy resource conducted by the
6751-23 Environmental Protection Agency that evaluated projected
6752-24 annual costs for operation and maintenance expenses; fully
6753-25 allocated overhead costs, which shall be allocated using the
6754-26 methodology developed by the Institute for Nuclear Power
6755-
6756-
6757-
6758-
6759-
6760- HB1056 Engrossed - 188 - LRB104 03146 SPS 13167 b
6761-
6762-
6763-HB1056 Engrossed- 189 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 189 - LRB104 03146 SPS 13167 b
6764- HB1056 Engrossed - 189 - LRB104 03146 SPS 13167 b
6765-1 Operations; fuel expenditures; nonfuel capital expenditures;
6766-2 spent fuel expenditures; a return on working capital; the cost
6767-3 of operational and market risks that could be avoided by
6768-4 ceasing operation; and any other costs necessary for continued
6769-5 operations, provided that "necessary" means, for purposes of
6770-6 this definition, that the costs could reasonably be avoided
6771-7 only by ceasing operations of the carbon-free energy resource.
6772-8 "Carbon mitigation credit" means a tradable credit that
6773-9 represents the carbon emission reduction attributes of one
6774-10 megawatt-hour of energy produced from a carbon-free energy
6775-11 resource.
6776-12 "Carbon-free energy resource" means a generation facility
6777-13 that: (1) is fueled by nuclear power; and (2) is
6778-14 interconnected to PJM Interconnection, LLC.
6779-15 (3) Procurement.
6780-16 (A) Beginning with the delivery year commencing on
6781-17 June 1, 2022, the Agency shall, for electric utilities
6782-18 serving at least 3,000,000 retail customers in the State,
6783-19 seek to procure contracts for no more than approximately
6784-20 54,500,000 cost-effective carbon mitigation credits from
6785-21 carbon-free energy resources because such credits are
6786-22 necessary to support current levels of carbon-free energy
6787-23 generation and ensure the State meets its carbon dioxide
6788-24 emissions reduction goals. The Agency shall not make a
6789-25 partial award of a contract for carbon mitigation credits
6790-26 covering a fractional amount of a carbon-free energy
6791-
6792-
6793-
6794-
6795-
6796- HB1056 Engrossed - 189 - LRB104 03146 SPS 13167 b
6797-
6798-
6799-HB1056 Engrossed- 190 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 190 - LRB104 03146 SPS 13167 b
6800- HB1056 Engrossed - 190 - LRB104 03146 SPS 13167 b
6801-1 resource's projected output.
6802-2 (B) Each carbon-free energy resource that intends to
6803-3 participate in a procurement shall be required to submit
6804-4 to the Agency the following information for the resource
6805-5 on or before the date established by the Agency:
6806-6 (i) the in-service date and remaining useful life
6807-7 of the carbon-free energy resource;
6808-8 (ii) the amount of power generated annually for
6809-9 each of the past 10 years, which shall be used to
6810-10 determine the capability of each facility;
6811-11 (iii) a commitment to be reflected in any contract
6812-12 entered into pursuant to this subsection (d-10) to
6813-13 continue operating the carbon-free energy resource at
6814-14 a capacity factor of at least 88% annually on average
6815-15 for the duration of the contract or contracts executed
6816-16 under the procurement held under this subsection
6817-17 (d-10), except in an instance described in
6818-18 subparagraph (E) of paragraph (1) of subsection (d-5)
6819-19 of this Section or made impracticable as a result of
6820-20 compliance with law or regulation;
6821-21 (iv) financial need and the risk of loss of the
6822-22 environmental benefits of such resource, which shall
6823-23 include the following information:
6824-24 (I) the carbon-free energy resource's cost
6825-25 projections, expressed on a per megawatt-hour
6826-26 basis, over the next 5 delivery years, which shall
6827-
6828-
6829-
6830-
6831-
6832- HB1056 Engrossed - 190 - LRB104 03146 SPS 13167 b
6833-
6834-
6835-HB1056 Engrossed- 191 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 191 - LRB104 03146 SPS 13167 b
6836- HB1056 Engrossed - 191 - LRB104 03146 SPS 13167 b
6837-1 include the following: operation and maintenance
6838-2 expenses; fully allocated overhead costs, which
6839-3 shall be allocated using the methodology developed
6840-4 by the Institute for Nuclear Power Operations;
6841-5 fuel expenditures; nonfuel capital expenditures;
6842-6 spent fuel expenditures; a return on working
6843-7 capital; the cost of operational and market risks
6844-8 that could be avoided by ceasing operation; and
6845-9 any other costs necessary for continued
6846-10 operations, provided that "necessary" means, for
6847-11 purposes of this subitem (I), that the costs could
6848-12 reasonably be avoided only by ceasing operations
6849-13 of the carbon-free energy resource; and
6850-14 (II) the carbon-free energy resource's revenue
6851-15 projections, including energy, capacity, ancillary
6852-16 services, any other direct State support, known or
6853-17 anticipated federal attribute credits, known or
6854-18 anticipated tax credits, and any other direct
6855-19 federal support.
6856-20 The information described in this subparagraph (B) may
6857-21 be submitted on a confidential basis and shall be treated
6858-22 and maintained by the Agency, the procurement
6859-23 administrator, and the Commission as confidential and
6860-24 proprietary and exempt from disclosure under subparagraphs
6861-25 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
6862-26 Information Act. The Office of the Attorney General shall
6863-
6864-
6865-
6866-
6867-
6868- HB1056 Engrossed - 191 - LRB104 03146 SPS 13167 b
6869-
6870-
6871-HB1056 Engrossed- 192 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 192 - LRB104 03146 SPS 13167 b
6872- HB1056 Engrossed - 192 - LRB104 03146 SPS 13167 b
6873-1 have access to, and maintain the confidentiality of, such
6874-2 information pursuant to Section 6.5 of the Attorney
6875-3 General Act.
6876-4 (C) The Agency shall solicit bids for the contracts
6877-5 described in this subsection (d-10) from carbon-free
6878-6 energy resources that have satisfied the requirements of
6879-7 subparagraph (B) of this paragraph (3). The contracts
6880-8 procured pursuant to a procurement event shall reflect,
6881-9 and be subject to, the following terms, requirements, and
6882-10 limitations:
6883-11 (i) Contracts are for delivery of carbon
6884-12 mitigation credits, and are not energy or capacity
6885-13 sales contracts requiring physical delivery. Pursuant
6886-14 to item (iii), contract payments shall fully deduct
6887-15 the value of any monetized federal production tax
6888-16 credits, credits issued pursuant to a federal clean
6889-17 energy standard, and other federal credits if
6890-18 applicable.
6891-19 (ii) Contracts for carbon mitigation credits shall
6892-20 commence with the delivery year beginning on June 1,
6893-21 2022 and shall be for a term of 5 delivery years
6894-22 concluding on May 31, 2027.
6895-23 (iii) The price per carbon mitigation credit to be
6896-24 paid under a contract for a given delivery year shall
6897-25 be equal to an accepted bid price less the sum of:
6898-26 (I) one of the following energy price indices,
6899-
6900-
6901-
6902-
6903-
6904- HB1056 Engrossed - 192 - LRB104 03146 SPS 13167 b
6905-
6906-
6907-HB1056 Engrossed- 193 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 193 - LRB104 03146 SPS 13167 b
6908- HB1056 Engrossed - 193 - LRB104 03146 SPS 13167 b
6909-1 selected by the bidder at the time of the bid for
6910-2 the term of the contract:
6911-3 (aa) the weighted-average hourly day-ahead
6912-4 price for the applicable delivery year at the
6913-5 busbar of all resources procured pursuant to
6914-6 this subsection (d-10), weighted by actual
6915-7 production from the resources; or
6916-8 (bb) the projected energy price for the
6917-9 PJM Interconnection, LLC Northern Illinois Hub
6918-10 for the applicable delivery year determined
6919-11 according to subitem (aa) of item (iii) of
6920-12 subparagraph (B) of paragraph (1) of
6921-13 subsection (d-5).
6922-14 (II) the Base Residual Auction Capacity Price
6923-15 for the ComEd zone as determined by PJM
6924-16 Interconnection, LLC, divided by 24 hours per day,
6925-17 for the applicable delivery year for the first 3
6926-18 delivery years, and then any subsequent delivery
6927-19 years unless the PJM Interconnection, LLC applies
6928-20 the Minimum Offer Price Rule to participating
6929-21 carbon-free energy resources because they supply
6930-22 carbon mitigation credits pursuant to this Section
6931-23 at which time, upon notice by the carbon-free
6932-24 energy resource to the Commission and subject to
6933-25 the Commission's confirmation, the value under
6934-26 this subitem shall be zero, as further described
6935-
6936-
6937-
6938-
6939-
6940- HB1056 Engrossed - 193 - LRB104 03146 SPS 13167 b
6941-
6942-
6943-HB1056 Engrossed- 194 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 194 - LRB104 03146 SPS 13167 b
6944- HB1056 Engrossed - 194 - LRB104 03146 SPS 13167 b
6945-1 in the carbon mitigation credit procurement plan;
6946-2 and
6947-3 (III) any value of monetized federal tax
6948-4 credits, direct payments, or similar subsidy
6949-5 provided to the carbon-free energy resource from
6950-6 any unit of government that is not already
6951-7 reflected in energy prices.
6952-8 If the price-per-megawatt-hour calculation
6953-9 performed under item (iii) of this subparagraph (C)
6954-10 for a given delivery year results in a net positive
6955-11 value, then the electric utility counterparty to the
6956-12 contract shall multiply such net value by the
6957-13 applicable contract quantity and remit the amount to
6958-14 the supplier.
6959-15 To protect retail customers from retail rate
6960-16 impacts that may arise upon the initiation of carbon
6961-17 policy changes, if the price-per-megawatt-hour
6962-18 calculation performed under item (iii) of this
6963-19 subparagraph (C) for a given delivery year results in
6964-20 a net negative value, then the supplier counterparty
6965-21 to the contract shall multiply such net value by the
6966-22 applicable contract quantity and remit such amount to
6967-23 the electric utility counterparty. The electric
6968-24 utility shall reflect such amounts remitted by
6969-25 suppliers as a credit on its retail customer bills as
6970-26 soon as practicable.
6971-
6972-
6973-
6974-
6975-
6976- HB1056 Engrossed - 194 - LRB104 03146 SPS 13167 b
6977-
6978-
6979-HB1056 Engrossed- 195 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 195 - LRB104 03146 SPS 13167 b
6980- HB1056 Engrossed - 195 - LRB104 03146 SPS 13167 b
6981-1 (iv) To ensure that retail customers in Northern
6982-2 Illinois do not pay more for carbon mitigation credits
6983-3 than the value such credits provide, and
6984-4 notwithstanding the provisions of this subsection
6985-5 (d-10), the Agency shall not accept bids for contracts
6986-6 that exceed a customer protection cap equal to the
6987-7 baseline costs of carbon-free energy resources.
6988-8 The baseline costs for the applicable year shall
6989-9 be the following:
6990-10 (I) For the delivery year beginning June 1,
6991-11 2022, the baseline costs shall be an amount equal
6992-12 to $30.30 per megawatt-hour.
6993-13 (II) For the delivery year beginning June 1,
6994-14 2023, the baseline costs shall be an amount equal
6995-15 to $32.50 per megawatt-hour.
6996-16 (III) For the delivery year beginning June 1,
6997-17 2024, the baseline costs shall be an amount equal
6998-18 to $33.43 per megawatt-hour.
6999-19 (IV) For the delivery year beginning June 1,
7000-20 2025, the baseline costs shall be an amount equal
7001-21 to $33.50 per megawatt-hour.
7002-22 (V) For the delivery year beginning June 1,
7003-23 2026, the baseline costs shall be an amount equal
7004-24 to $34.50 per megawatt-hour.
7005-25 An Environmental Protection Agency consultant
7006-26 forecast, included in a report issued April 14, 2021,
7007-
7008-
7009-
7010-
7011-
7012- HB1056 Engrossed - 195 - LRB104 03146 SPS 13167 b
7013-
7014-
7015-HB1056 Engrossed- 196 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 196 - LRB104 03146 SPS 13167 b
7016- HB1056 Engrossed - 196 - LRB104 03146 SPS 13167 b
7017-1 projects that a carbon-free energy resource has the
7018-2 opportunity to earn on average approximately $30.28
7019-3 per megawatt-hour, for the sale of energy and capacity
7020-4 during the time period between 2022 and 2027.
7021-5 Therefore, the sale of carbon mitigation credits
7022-6 provides the opportunity to receive an additional
7023-7 amount per megawatt-hour in addition to the projected
7024-8 prices for energy and capacity.
7025-9 Although actual energy and capacity prices may
7026-10 vary from year-to-year, the General Assembly finds
7027-11 that this customer protection cap will help ensure
7028-12 that the cost of carbon mitigation credits will be
7029-13 less than its value, based upon the social cost of
7030-14 carbon identified in the Technical Support Document
7031-15 issued in February 2021 by the U.S. Interagency
7032-16 Working Group on Social Cost of Greenhouse Gases and
7033-17 the PJM Interconnection, LLC carbon dioxide marginal
7034-18 emission rate for 2020, and that a carbon-free energy
7035-19 resource receiving payment for carbon mitigation
7036-20 credits receives no more than necessary to keep those
7037-21 units in operation.
7038-22 (D) No later than 7 days after the effective date of
7039-23 this amendatory Act of the 102nd General Assembly, the
7040-24 Agency shall publish its proposed carbon mitigation credit
7041-25 procurement plan. The Plan shall provide that winning bids
7042-26 shall be selected by taking into consideration which
7043-
7044-
7045-
7046-
7047-
7048- HB1056 Engrossed - 196 - LRB104 03146 SPS 13167 b
7049-
7050-
7051-HB1056 Engrossed- 197 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 197 - LRB104 03146 SPS 13167 b
7052- HB1056 Engrossed - 197 - LRB104 03146 SPS 13167 b
7053-1 resources best match public interest criteria that
7054-2 include, but are not limited to, minimizing carbon dioxide
7055-3 emissions that result from electricity consumed in
7056-4 Illinois and minimizing sulfur dioxide, nitrogen oxide,
7057-5 and particulate matter emissions that adversely affect the
7058-6 citizens of this State. The selection of winning bids
7059-7 shall also take into account the incremental environmental
7060-8 benefits resulting from the procurement or procurements,
7061-9 such as any existing environmental benefits that are
7062-10 preserved by a procurement held under this subsection
7063-11 (d-10) and would cease to exist if the procurement were
7064-12 not held, including the preservation of carbon-free energy
7065-13 resources. For those bidders having the same public
7066-14 interest criteria score, the relative ranking of such
7067-15 bidders shall be determined by price. The Plan shall
7068-16 describe in detail how each public interest factor shall
7069-17 be considered and weighted in the bid selection process to
7070-18 ensure that the public interest criteria are applied to
7071-19 the procurement. The Plan shall, to the extent practical
7072-20 and permissible by federal law, ensure that successful
7073-21 bidders make commercially reasonable efforts to apply for
7074-22 federal tax credits, direct payments, or similar subsidy
7075-23 programs that support carbon-free generation and for which
7076-24 the successful bidder is eligible. Upon publishing of the
7077-25 carbon mitigation credit procurement plan, copies of the
7078-26 plan shall be posted and made publicly available on the
7079-
7080-
7081-
7082-
7083-
7084- HB1056 Engrossed - 197 - LRB104 03146 SPS 13167 b
7085-
7086-
7087-HB1056 Engrossed- 198 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 198 - LRB104 03146 SPS 13167 b
7088- HB1056 Engrossed - 198 - LRB104 03146 SPS 13167 b
7089-1 Agency's website. All interested parties shall have 7 days
7090-2 following the date of posting to provide comment to the
7091-3 Agency on the plan. All comments shall be posted to the
7092-4 Agency's website. Following the end of the comment period,
7093-5 but no more than 19 days later than the effective date of
7094-6 this amendatory Act of the 102nd General Assembly, the
7095-7 Agency shall revise the plan as necessary based on the
7096-8 comments received and file its carbon mitigation credit
7097-9 procurement plan with the Commission.
7098-10 (E) If the Commission determines that the plan is
7099-11 likely to result in the procurement of cost-effective
7100-12 carbon mitigation credits, then the Commission shall,
7101-13 after notice and hearing and opportunity for comment, but
7102-14 no later than 42 days after the Agency filed the plan,
7103-15 approve the plan or approve it with modification. For
7104-16 purposes of this subsection (d-10), "cost-effective" means
7105-17 carbon mitigation credits that are procured from
7106-18 carbon-free energy resources at prices that are within the
7107-19 limits specified in this paragraph (3). As part of the
7108-20 Commission's review and acceptance or rejection of the
7109-21 procurement results, the Commission shall, in its public
7110-22 notice of successful bidders:
7111-23 (i) identify how the selected carbon-free energy
7112-24 resources satisfy the public interest criteria
7113-25 described in this paragraph (3) of minimizing carbon
7114-26 dioxide emissions that result from electricity
7115-
7116-
7117-
7118-
7119-
7120- HB1056 Engrossed - 198 - LRB104 03146 SPS 13167 b
7121-
7122-
7123-HB1056 Engrossed- 199 -LRB104 03146 SPS 13167 b HB1056 Engrossed - 199 - LRB104 03146 SPS 13167 b
7124- HB1056 Engrossed - 199 - LRB104 03146 SPS 13167 b
7125-1 consumed in Illinois and minimizing sulfur dioxide,
7126-2 nitrogen oxide, and particulate matter emissions that
7127-3 adversely affect the citizens of this State;
7128-4 (ii) specifically address how the selection of
7129-5 carbon-free energy resources takes into account the
7130-6 incremental environmental benefits resulting from the
7131-7 procurement, including any existing environmental
7132-8 benefits that are preserved by the procurements held
7133-9 under this amendatory Act of the 102nd General
7134-10 Assembly and would have ceased to exist if the
7135-11 procurements had not been held, such as the
7136-12 preservation of carbon-free energy resources;
7137-13 (iii) quantify the environmental benefit of
7138-14 preserving the carbon-free energy resources procured
7139-15 pursuant to this subsection (d-10), including the
7140-16 following:
7141-17 (I) an assessment value of avoided greenhouse
7142-18 gas emissions measured as the product of the
7143-19 carbon-free energy resources' output over the
7144-20 contract term, using generally accepted
7145-21 methodologies for the valuation of avoided
7146-22 emissions; and
7147-23 (II) an assessment of costs of replacement
7148-24 with other carbon-free energy resources and
7149-25 renewable energy resources, including wind and
7150-26 photovoltaic generation, based upon an assessment
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7161-1 of the prices paid for renewable energy credits
7162-2 through programs and procurements conducted
7163-3 pursuant to subsection (c) of Section 1-75 of this
7164-4 Act, and the additional storage necessary to
7165-5 produce the same or similar capability of matching
7166-6 customer usage patterns.
7167-7 (F) The procurements described in this paragraph (3),
7168-8 including, but not limited to, the execution of all
7169-9 contracts procured, shall be completed no later than
7170-10 December 3, 2021. The procurement and plan approval
7171-11 processes required by this paragraph (3) shall be
7172-12 conducted in conjunction with the procurement and plan
7173-13 approval processes required by Section 16-111.5 of the
7174-14 Public Utilities Act, to the extent practicable. However,
7175-15 the Agency and Commission may, as appropriate, modify the
7176-16 various dates and timelines under this subparagraph and
7177-17 subparagraphs (D) and (E) of this paragraph (3) to meet
7178-18 the December 3, 2021 contract execution deadline.
7179-19 Following the completion of such procurements, and
7180-20 consistent with this paragraph (3), the Agency shall
7181-21 calculate the payments to be made under each contract in a
7182-22 timely fashion.
7183-23 (F-1) Costs incurred by the electric utility pursuant
7184-24 to a contract authorized by this subsection (d-10) shall
7185-25 be deemed prudently incurred and reasonable in amount, and
7186-26 the electric utility shall be entitled to full cost
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7197-1 recovery pursuant to a tariff or tariffs filed with the
7198-2 Commission.
7199-3 (G) The counterparty electric utility shall retire all
7200-4 carbon mitigation credits used to comply with the
7201-5 requirements of this subsection (d-10).
7202-6 (H) If a carbon-free energy resource is sold to
7203-7 another owner, the rights, obligations, and commitments
7204-8 under this subsection (d-10) shall continue to the
7205-9 subsequent owner.
7206-10 (I) This subsection (d-10) shall become inoperative on
7207-11 January 1, 2028.
7208-12 (e) The draft procurement plans are subject to public
7209-13 comment, as required by Section 16-111.5 of the Public
7210-14 Utilities Act.
7211-15 (f) The Agency shall submit the final procurement plan to
7212-16 the Commission. The Agency shall revise a procurement plan if
7213-17 the Commission determines that it does not meet the standards
7214-18 set forth in Section 16-111.5 of the Public Utilities Act.
7215-19 (g) The Agency shall assess fees to each affected utility
7216-20 to recover the costs incurred in preparation of the annual
7217-21 procurement plan for the utility.
7218-22 (h) The Agency shall assess fees to each bidder to recover
7219-23 the costs incurred in connection with a competitive
7220-24 procurement process.
7221-25 (i) A renewable energy credit, carbon emission credit,
7222-26 zero emission credit, or carbon mitigation credit can only be
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7233-1 used once to comply with a single portfolio or other standard
7234-2 as set forth in subsection (c), subsection (d), or subsection
7235-3 (d-5) of this Section, respectively. A renewable energy
7236-4 credit, carbon emission credit, zero emission credit, or
7237-5 carbon mitigation credit cannot be used to satisfy the
7238-6 requirements of more than one standard. If more than one type
7239-7 of credit is issued for the same megawatt hour of energy, only
7240-8 one credit can be used to satisfy the requirements of a single
7241-9 standard. After such use, the credit must be retired together
7242-10 with any other credits issued for the same megawatt hour of
7243-11 energy.
7244-12 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
7245-13 103-580, eff. 12-8-23; 103-1066, eff. 2-20-25.)
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