Illinois 2025-2026 Regular Session

Illinois House Bill HB2810 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2810 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-7565 ILCS 5/11-13-26505 ILCS 147/1505 ILCS 147/5505 ILCS 147/10505 ILCS 147/15 Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms. Effective immediately. LRB104 08813 BDA 18868 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2810 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-7565 ILCS 5/11-13-26505 ILCS 147/1505 ILCS 147/5505 ILCS 147/10505 ILCS 147/15 20 ILCS 3855/1-75 65 ILCS 5/11-13-26 505 ILCS 147/1 505 ILCS 147/5 505 ILCS 147/10 505 ILCS 147/15 Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms. Effective immediately. LRB104 08813 BDA 18868 b LRB104 08813 BDA 18868 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2810 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 3855/1-7565 ILCS 5/11-13-26505 ILCS 147/1505 ILCS 147/5505 ILCS 147/10505 ILCS 147/15 20 ILCS 3855/1-75 65 ILCS 5/11-13-26 505 ILCS 147/1 505 ILCS 147/5 505 ILCS 147/10 505 ILCS 147/15
4	4	20 ILCS 3855/1-75
5	5	65 ILCS 5/11-13-26
6	6	505 ILCS 147/1
7	7	505 ILCS 147/5
8	8	505 ILCS 147/10
9	9	505 ILCS 147/15
10	10	Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms. Effective immediately.
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13	13	A BILL FOR
14	14	HB2810LRB104 08813 BDA 18868 b HB2810 LRB104 08813 BDA 18868 b
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16	16	1 AN ACT concerning agriculture.
17	17	2 Be it enacted by the People of the State of Illinois,
18	18	3 represented in the General Assembly:
19	19	4 Section 5. The Illinois Power Agency Act is amended by
20	20	5 changing Section 1-75 as follows:
21	21	6 (20 ILCS 3855/1-75)
22	22	7 Sec. 1-75. Planning and Procurement Bureau. The Planning
23	23	8 and Procurement Bureau has the following duties and
24	24	9 responsibilities:
25	25	10 (a) The Planning and Procurement Bureau shall each year,
26	26	11 beginning in 2008, develop procurement plans and conduct
27	27	12 competitive procurement processes in accordance with the
28	28	13 requirements of Section 16-111.5 of the Public Utilities Act
29	29	14 for the eligible retail customers of electric utilities that
30	30	15 on December 31, 2005 provided electric service to at least
31	31	16 100,000 customers in Illinois. Beginning with the delivery
32	32	17 year commencing on June 1, 2017, the Planning and Procurement
33	33	18 Bureau shall develop plans and processes for the procurement
34	34	19 of zero emission credits from zero emission facilities in
35	35	20 accordance with the requirements of subsection (d-5) of this
36	36	21 Section. Beginning on the effective date of this amendatory
37	37	22 Act of the 102nd General Assembly, the Planning and
38	38	23 Procurement Bureau shall develop plans and processes for the
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42	42	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2810 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED:
43	43	20 ILCS 3855/1-7565 ILCS 5/11-13-26505 ILCS 147/1505 ILCS 147/5505 ILCS 147/10505 ILCS 147/15 20 ILCS 3855/1-75 65 ILCS 5/11-13-26 505 ILCS 147/1 505 ILCS 147/5 505 ILCS 147/10 505 ILCS 147/15
44	44	20 ILCS 3855/1-75
45	45	65 ILCS 5/11-13-26
46	46	505 ILCS 147/1
47	47	505 ILCS 147/5
48	48	505 ILCS 147/10
49	49	505 ILCS 147/15
50	50	Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms. Effective immediately.
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52	52	LRB104 08813 BDA 18868 b
53	53	A BILL FOR
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59	59	20 ILCS 3855/1-75
60	60	65 ILCS 5/11-13-26
61	61	505 ILCS 147/1
62	62	505 ILCS 147/5
63	63	505 ILCS 147/10
64	64	505 ILCS 147/15
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83	83	1 procurement of carbon mitigation credits from carbon-free
84	84	2 energy resources in accordance with the requirements of
85	85	3 subsection (d-10) of this Section. The Planning and
86	86	4 Procurement Bureau shall also develop procurement plans and
87	87	5 conduct competitive procurement processes in accordance with
88	88	6 the requirements of Section 16-111.5 of the Public Utilities
89	89	7 Act for the eligible retail customers of small
90	90	8 multi-jurisdictional electric utilities that (i) on December
91	91	9 31, 2005 served less than 100,000 customers in Illinois and
92	92	10 (ii) request a procurement plan for their Illinois
93	93	11 jurisdictional load. This Section shall not apply to a small
94	94	12 multi-jurisdictional utility until such time as a small
95	95	13 multi-jurisdictional utility requests the Agency to prepare a
96	96	14 procurement plan for their Illinois jurisdictional load. For
97	97	15 the purposes of this Section, the term "eligible retail
98	98	16 customers" has the same definition as found in Section
99	99	17 16-111.5(a) of the Public Utilities Act.
100	100	18 Beginning with the plan or plans to be implemented in the
101	101	19 2017 delivery year, the Agency shall no longer include the
102	102	20 procurement of renewable energy resources in the annual
103	103	21 procurement plans required by this subsection (a), except as
104	104	22 provided in subsection (q) of Section 16-111.5 of the Public
105	105	23 Utilities Act, and shall instead develop a long-term renewable
106	106	24 resources procurement plan in accordance with subsection (c)
107	107	25 of this Section and Section 16-111.5 of the Public Utilities
108	108	26 Act.
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119	119	1 In accordance with subsection (c-5) of this Section, the
120	120	2 Planning and Procurement Bureau shall oversee the procurement
121	121	3 by electric utilities that served more than 300,000 retail
122	122	4 customers in this State as of January 1, 2019 of renewable
123	123	5 energy credits from new utility-scale solar projects to be
124	124	6 installed, along with energy storage facilities, at or
125	125	7 adjacent to the sites of electric generating facilities that,
126	126	8 as of January 1, 2016, burned coal as their primary fuel
127	127	9 source.
128	128	10 (1) The Agency shall each year, beginning in 2008, as
129	129	11 needed, issue a request for qualifications for experts or
130	130	12 expert consulting firms to develop the procurement plans
131	131	13 in accordance with Section 16-111.5 of the Public
132	132	14 Utilities Act. In order to qualify an expert or expert
133	133	15 consulting firm must have:
134	134	16 (A) direct previous experience assembling
135	135	17 large-scale power supply plans or portfolios for
136	136	18 end-use customers;
137	137	19 (B) an advanced degree in economics, mathematics,
138	138	20 engineering, risk management, or a related area of
139	139	21 study;
140	140	22 (C) 10 years of experience in the electricity
141	141	23 sector, including managing supply risk;
142	142	24 (D) expertise in wholesale electricity market
143	143	25 rules, including those established by the Federal
144	144	26 Energy Regulatory Commission and regional transmission
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155	155	1 organizations;
156	156	2 (E) expertise in credit protocols and familiarity
157	157	3 with contract protocols;
158	158	4 (F) adequate resources to perform and fulfill the
159	159	5 required functions and responsibilities; and
160	160	6 (G) the absence of a conflict of interest and
161	161	7 inappropriate bias for or against potential bidders or
162	162	8 the affected electric utilities.
163	163	9 (2) The Agency shall each year, as needed, issue a
164	164	10 request for qualifications for a procurement administrator
165	165	11 to conduct the competitive procurement processes in
166	166	12 accordance with Section 16-111.5 of the Public Utilities
167	167	13 Act. In order to qualify an expert or expert consulting
168	168	14 firm must have:
169	169	15 (A) direct previous experience administering a
170	170	16 large-scale competitive procurement process;
171	171	17 (B) an advanced degree in economics, mathematics,
172	172	18 engineering, or a related area of study;
173	173	19 (C) 10 years of experience in the electricity
174	174	20 sector, including risk management experience;
175	175	21 (D) expertise in wholesale electricity market
176	176	22 rules, including those established by the Federal
177	177	23 Energy Regulatory Commission and regional transmission
178	178	24 organizations;
179	179	25 (E) expertise in credit and contract protocols;
180	180	26 (F) adequate resources to perform and fulfill the
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191	191	1 required functions and responsibilities; and
192	192	2 (G) the absence of a conflict of interest and
193	193	3 inappropriate bias for or against potential bidders or
194	194	4 the affected electric utilities.
195	195	5 (3) The Agency shall provide affected utilities and
196	196	6 other interested parties with the lists of qualified
197	197	7 experts or expert consulting firms identified through the
198	198	8 request for qualifications processes that are under
199	199	9 consideration to develop the procurement plans and to
200	200	10 serve as the procurement administrator. The Agency shall
201	201	11 also provide each qualified expert's or expert consulting
202	202	12 firm's response to the request for qualifications. All
203	203	13 information provided under this subparagraph shall also be
204	204	14 provided to the Commission. The Agency may provide by rule
205	205	15 for fees associated with supplying the information to
206	206	16 utilities and other interested parties. These parties
207	207	17 shall, within 5 business days, notify the Agency in
208	208	18 writing if they object to any experts or expert consulting
209	209	19 firms on the lists. Objections shall be based on:
210	210	20 (A) failure to satisfy qualification criteria;
211	211	21 (B) identification of a conflict of interest; or
212	212	22 (C) evidence of inappropriate bias for or against
213	213	23 potential bidders or the affected utilities.
214	214	24 The Agency shall remove experts or expert consulting
215	215	25 firms from the lists within 10 days if there is a
216	216	26 reasonable basis for an objection and provide the updated
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227	227	1 lists to the affected utilities and other interested
228	228	2 parties. If the Agency fails to remove an expert or expert
229	229	3 consulting firm from a list, an objecting party may seek
230	230	4 review by the Commission within 5 days thereafter by
231	231	5 filing a petition, and the Commission shall render a
232	232	6 ruling on the petition within 10 days. There is no right of
233	233	7 appeal of the Commission's ruling.
234	234	8 (4) The Agency shall issue requests for proposals to
235	235	9 the qualified experts or expert consulting firms to
236	236	10 develop a procurement plan for the affected utilities and
237	237	11 to serve as procurement administrator.
238	238	12 (5) The Agency shall select an expert or expert
239	239	13 consulting firm to develop procurement plans based on the
240	240	14 proposals submitted and shall award contracts of up to 5
241	241	15 years to those selected.
242	242	16 (6) The Agency shall select an expert or expert
243	243	17 consulting firm, with approval of the Commission, to serve
244	244	18 as procurement administrator based on the proposals
245	245	19 submitted. If the Commission rejects, within 5 days, the
246	246	20 Agency's selection, the Agency shall submit another
247	247	21 recommendation within 3 days based on the proposals
248	248	22 submitted. The Agency shall award a 5-year contract to the
249	249	23 expert or expert consulting firm so selected with
250	250	24 Commission approval.
251	251	25 (b) The experts or expert consulting firms retained by the
252	252	26 Agency shall, as appropriate, prepare procurement plans, and
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263	263	1 conduct a competitive procurement process as prescribed in
264	264	2 Section 16-111.5 of the Public Utilities Act, to ensure
265	265	3 adequate, reliable, affordable, efficient, and environmentally
266	266	4 sustainable electric service at the lowest total cost over
267	267	5 time, taking into account any benefits of price stability, for
268	268	6 eligible retail customers of electric utilities that on
269	269	7 December 31, 2005 provided electric service to at least
270	270	8 100,000 customers in the State of Illinois, and for eligible
271	271	9 Illinois retail customers of small multi-jurisdictional
272	272	10 electric utilities that (i) on December 31, 2005 served less
273	273	11 than 100,000 customers in Illinois and (ii) request a
274	274	12 procurement plan for their Illinois jurisdictional load.
275	275	13 (c) Renewable portfolio standard.
276	276	14 (1)(A) The Agency shall develop a long-term renewable
277	277	15 resources procurement plan that shall include procurement
278	278	16 programs and competitive procurement events necessary to
279	279	17 meet the goals set forth in this subsection (c). The
280	280	18 initial long-term renewable resources procurement plan
281	281	19 shall be released for comment no later than 160 days after
282	282	20 June 1, 2017 (the effective date of Public Act 99-906).
283	283	21 The Agency shall review, and may revise on an expedited
284	284	22 basis, the long-term renewable resources procurement plan
285	285	23 at least every 2 years, which shall be conducted in
286	286	24 conjunction with the procurement plan under Section
287	287	25 16-111.5 of the Public Utilities Act to the extent
288	288	26 practicable to minimize administrative expense. No later
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299	299	1 than 120 days after the effective date of this amendatory
300	300	2 Act of the 103rd General Assembly, the Agency shall
301	301	3 release for comment a revision to the long-term renewable
302	302	4 resources procurement plan, updating elements of the most
303	303	5 recently approved plan as needed to comply with this
304	304	6 amendatory Act of the 103rd General Assembly, and any
305	305	7 long-term renewable resources procurement plan update
306	306	8 published by the Agency but not yet approved by the
307	307	9 Illinois Commerce Commission shall be withdrawn. No later
308	308	10 than 120 days after the effective date of this amendatory
309	309	11 Act of the 104th General Assembly, the Agency shall
310	310	12 release for comment a revision to the long-term renewable
311	311	13 resources procurement plan, updating elements of the most
312	312	14 recently approved plan as needed to comply with this
313	313	15 amendatory Act of the 104th General Assembly, and any
314	314	16 long-term renewable resources procurement plan update
315	315	17 published by the Agency but not yet approved by the
316	316	18 Illinois Commerce Commission shall be withdrawn. The
317	317	19 long-term renewable resources procurement plans shall be
318	318	20 subject to review and approval by the Commission under
319	319	21 Section 16-111.5 of the Public Utilities Act.
320	320	22 (B) Subject to subparagraph (F) of this paragraph (1),
321	321	23 the long-term renewable resources procurement plan shall
322	322	24 attempt to meet the goals for procurement of renewable
323	323	25 energy credits at levels of at least the following overall
324	324	26 percentages: 13% by the 2017 delivery year; increasing by
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335	335	1 at least 1.5% each delivery year thereafter to at least
336	336	2 25% by the 2025 delivery year; increasing by at least 3%
337	337	3 each delivery year thereafter to at least 40% by the 2030
338	338	4 delivery year, and continuing at no less than 40% for each
339	339	5 delivery year thereafter. The Agency shall attempt to
340	340	6 procure 50% by delivery year 2040. The Agency shall
341	341	7 determine the annual increase between delivery year 2030
342	342	8 and delivery year 2040, if any, taking into account energy
343	343	9 demand, other energy resources, and other public policy
344	344	10 goals. In the event of a conflict between these goals and
345	345	11 the new wind, new photovoltaic, and hydropower procurement
346	346	12 requirements described in items (i) through (iii) of
347	347	13 subparagraph (C) of this paragraph (1), the long-term plan
348	348	14 shall prioritize compliance with the new wind, new
349	349	15 photovoltaic, and hydropower procurement requirements
350	350	16 described in items (i) through (iii) of subparagraph (C)
351	351	17 of this paragraph (1) over the annual percentage targets
352	352	18 described in this subparagraph (B). The Agency shall not
353	353	19 comply with the annual percentage targets described in
354	354	20 this subparagraph (B) by procuring renewable energy
355	355	21 credits that are unlikely to lead to the development of
356	356	22 new renewable resources or new, modernized, or retooled
357	357	23 hydropower facilities.
358	358	24 For the delivery year beginning June 1, 2017, the
359	359	25 procurement plan shall attempt to include, subject to the
360	360	26 prioritization outlined in this subparagraph (B),
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371	371	1 cost-effective renewable energy resources equal to at
372	372	2 least 13% of each utility's load for eligible retail
373	373	3 customers and 13% of the applicable portion of each
374	374	4 utility's load for retail customers who are not eligible
375	375	5 retail customers, which applicable portion shall equal 50%
376	376	6 of the utility's load for retail customers who are not
377	377	7 eligible retail customers on February 28, 2017.
378	378	8 For the delivery year beginning June 1, 2018, the
379	379	9 procurement plan shall attempt to include, subject to the
380	380	10 prioritization outlined in this subparagraph (B),
381	381	11 cost-effective renewable energy resources equal to at
382	382	12 least 14.5% of each utility's load for eligible retail
383	383	13 customers and 14.5% of the applicable portion of each
384	384	14 utility's load for retail customers who are not eligible
385	385	15 retail customers, which applicable portion shall equal 75%
386	386	16 of the utility's load for retail customers who are not
387	387	17 eligible retail customers on February 28, 2017.
388	388	18 For the delivery year beginning June 1, 2019, and for
389	389	19 each year thereafter, the procurement plans shall attempt
390	390	20 to include, subject to the prioritization outlined in this
391	391	21 subparagraph (B), cost-effective renewable energy
392	392	22 resources equal to a minimum percentage of each utility's
393	393	23 load for all retail customers as follows: 16% by June 1,
394	394	24 2019; increasing by 1.5% each year thereafter to 25% by
395	395	25 June 1, 2025; and 25% by June 1, 2026; increasing by at
396	396	26 least 3% each delivery year thereafter to at least 40% by
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407	407	1 the 2030 delivery year, and continuing at no less than 40%
408	408	2 for each delivery year thereafter. The Agency shall
409	409	3 attempt to procure 50% by delivery year 2040. The Agency
410	410	4 shall determine the annual increase between delivery year
411	411	5 2030 and delivery year 2040, if any, taking into account
412	412	6 energy demand, other energy resources, and other public
413	413	7 policy goals.
414	414	8 For each delivery year, the Agency shall first
415	415	9 recognize each utility's obligations for that delivery
416	416	10 year under existing contracts. Any renewable energy
417	417	11 credits under existing contracts, including renewable
418	418	12 energy credits as part of renewable energy resources,
419	419	13 shall be used to meet the goals set forth in this
420	420	14 subsection (c) for the delivery year.
421	421	15 (C) The long-term renewable resources procurement plan
422	422	16 described in subparagraph (A) of this paragraph (1) shall
423	423	17 include the procurement of renewable energy credits from
424	424	18 new projects pursuant to the following terms:
425	425	19 (i) At least 10,000,000 renewable energy credits
426	426	20 delivered annually by the end of the 2021 delivery
427	427	21 year, and increasing ratably to reach 45,000,000
428	428	22 renewable energy credits delivered annually from new
429	429	23 wind and solar projects by the end of delivery year
430	430	24 2030 such that the goals in subparagraph (B) of this
431	431	25 paragraph (1) are met entirely by procurements of
432	432	26 renewable energy credits from new wind and
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443	443	1 photovoltaic projects. Of that amount, to the extent
444	444	2 possible, the Agency shall procure 45% from wind and
445	445	3 hydropower projects and 55% from photovoltaic
446	446	4 projects. Of the amount to be procured from
447	447	5 photovoltaic projects, the Agency shall procure: at
448	448	6 least 50% from solar photovoltaic projects using the
449	449	7 program outlined in subparagraph (K) of this paragraph
450	450	8 (1) from distributed renewable energy generation
451	451	9 devices or community renewable generation projects; at
452	452	10 least 47% from utility-scale solar projects; at least
453	453	11 3% from brownfield site photovoltaic projects that are
454	454	12 not community renewable generation projects.
455	455	13 In developing the long-term renewable resources
456	456	14 procurement plan, the Agency shall consider other
457	457	15 approaches, in addition to competitive procurements,
458	458	16 that can be used to procure renewable energy credits
459	459	17 from brownfield site photovoltaic projects and thereby
460	460	18 help return blighted or contaminated land to
461	461	19 productive use while enhancing public health and the
462	462	20 well-being of Illinois residents, including those in
463	463	21 environmental justice communities, as defined using
464	464	22 existing methodologies and findings used by the Agency
465	465	23 and its Administrator in its Illinois Solar for All
466	466	24 Program. The Agency shall also consider other
467	467	25 approaches, in addition to competitive procurements,
468	468	26 to procure renewable energy credits from new and
469	469
470	470
471	471
472	472
473	473
474	474	HB2810 - 12 - LRB104 08813 BDA 18868 b
475	475
476	476
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478	478	HB2810 - 13 - LRB104 08813 BDA 18868 b
479	479	1 existing hydropower facilities to support the
480	480	2 development and maintenance of these facilities. The
481	481	3 Agency shall explore options to convert existing dams
482	482	4 but shall not consider approaches to develop new dams
483	483	5 where they do not already exist.
484	484	6 (ii) In any given delivery year, if forecasted
485	485	7 expenses are less than the maximum budget available
486	486	8 under subparagraph (E) of this paragraph (1), the
487	487	9 Agency shall continue to procure new renewable energy
488	488	10 credits until that budget is exhausted in the manner
489	489	11 outlined in item (i) of this subparagraph (C).
490	490	12 (iii) For purposes of this Section:
491	491	13 "New wind projects" means wind renewable energy
492	492	14 facilities that are energized after June 1, 2017 for
493	493	15 the delivery year commencing June 1, 2017.
494	494	16 "New photovoltaic projects" means photovoltaic
495	495	17 renewable energy facilities that are energized after
496	496	18 June 1, 2017. Photovoltaic projects developed under
497	497	19 Section 1-56 of this Act shall not apply towards the
498	498	20 new photovoltaic project requirements in this
499	499	21 subparagraph (C).
500	500	22 For purposes of calculating whether the Agency has
501	501	23 procured enough new wind and solar renewable energy
502	502	24 credits required by this subparagraph (C), renewable
503	503	25 energy facilities that have a multi-year renewable
504	504	26 energy credit delivery contract with the utility
505	505
506	506
507	507
508	508
509	509
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511	511
512	512
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514	514	HB2810 - 14 - LRB104 08813 BDA 18868 b
515	515	1 through at least delivery year 2030 shall be
516	516	2 considered new, however no renewable energy credits
517	517	3 from contracts entered into before June 1, 2021 shall
518	518	4 be used to calculate whether the Agency has procured
519	519	5 the correct proportion of new wind and new solar
520	520	6 contracts described in this subparagraph (C) for
521	521	7 delivery year 2021 and thereafter.
522	522	8 (D) Renewable energy credits shall be cost effective.
523	523	9 For purposes of this subsection (c), "cost effective"
524	524	10 means that the costs of procuring renewable energy
525	525	11 resources do not cause the limit stated in subparagraph
526	526	12 (E) of this paragraph (1) to be exceeded and, for
527	527	13 renewable energy credits procured through a competitive
528	528	14 procurement event, do not exceed benchmarks based on
529	529	15 market prices for like products in the region. For
530	530	16 purposes of this subsection (c), "like products" means
531	531	17 contracts for renewable energy credits from the same or
532	532	18 substantially similar technology, same or substantially
533	533	19 similar vintage (new or existing), the same or
534	534	20 substantially similar quantity, and the same or
535	535	21 substantially similar contract length and structure.
536	536	22 Benchmarks shall reflect development, financing, or
537	537	23 related costs resulting from requirements imposed through
538	538	24 other provisions of State law, including, but not limited
539	539	25 to, requirements in subparagraphs (P) and (Q) of this
540	540	26 paragraph (1) and the Renewable Energy Facilities
541	541
542	542
543	543
544	544
545	545
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547	547
548	548
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550	550	HB2810 - 15 - LRB104 08813 BDA 18868 b
551	551	1 Agricultural Impact Mitigation Act. Confidential
552	552	2 benchmarks shall be developed by the procurement
553	553	3 administrator, in consultation with the Commission staff,
554	554	4 Agency staff, and the procurement monitor and shall be
555	555	5 subject to Commission review and approval. If price
556	556	6 benchmarks for like products in the region are not
557	557	7 available, the procurement administrator shall establish
558	558	8 price benchmarks based on publicly available data on
559	559	9 regional technology costs and expected current and future
560	560	10 regional energy prices. The benchmarks in this Section
561	561	11 shall not be used to curtail or otherwise reduce
562	562	12 contractual obligations entered into by or through the
563	563	13 Agency prior to June 1, 2017 (the effective date of Public
564	564	14 Act 99-906).
565	565	15 (E) For purposes of this subsection (c), the required
566	566	16 procurement of cost-effective renewable energy resources
567	567	17 for a particular year commencing prior to June 1, 2017
568	568	18 shall be measured as a percentage of the actual amount of
569	569	19 electricity (megawatt-hours) supplied by the electric
570	570	20 utility to eligible retail customers in the delivery year
571	571	21 ending immediately prior to the procurement, and, for
572	572	22 delivery years commencing on and after June 1, 2017, the
573	573	23 required procurement of cost-effective renewable energy
574	574	24 resources for a particular year shall be measured as a
575	575	25 percentage of the actual amount of electricity
576	576	26 (megawatt-hours) delivered by the electric utility in the
577	577
578	578
579	579
580	580
581	581
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583	583
584	584
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586	586	HB2810 - 16 - LRB104 08813 BDA 18868 b
587	587	1 delivery year ending immediately prior to the procurement,
588	588	2 to all retail customers in its service territory. For
589	589	3 purposes of this subsection (c), the amount paid per
590	590	4 kilowatthour means the total amount paid for electric
591	591	5 service expressed on a per kilowatthour basis. For
592	592	6 purposes of this subsection (c), the total amount paid for
593	593	7 electric service includes without limitation amounts paid
594	594	8 for supply, transmission, capacity, distribution,
595	595	9 surcharges, and add-on taxes.
596	596	10 Notwithstanding the requirements of this subsection
597	597	11 (c), the total of renewable energy resources procured
598	598	12 under the procurement plan for any single year shall be
599	599	13 subject to the limitations of this subparagraph (E). Such
600	600	14 procurement shall be reduced for all retail customers
601	601	15 based on the amount necessary to limit the annual
602	602	16 estimated average net increase due to the costs of these
603	603	17 resources included in the amounts paid by eligible retail
604	604	18 customers in connection with electric service to no more
605	605	19 than 4.25% of the amount paid per kilowatthour by those
606	606	20 customers during the year ending May 31, 2009. To arrive
607	607	21 at a maximum dollar amount of renewable energy resources
608	608	22 to be procured for the particular delivery year, the
609	609	23 resulting per kilowatthour amount shall be applied to the
610	610	24 actual amount of kilowatthours of electricity delivered,
611	611	25 or applicable portion of such amount as specified in
612	612	26 paragraph (1) of this subsection (c), as applicable, by
613	613
614	614
615	615
616	616
617	617
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619	619
620	620
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622	622	HB2810 - 17 - LRB104 08813 BDA 18868 b
623	623	1 the electric utility in the delivery year immediately
624	624	2 prior to the procurement to all retail customers in its
625	625	3 service territory. The calculations required by this
626	626	4 subparagraph (E) shall be made only once for each delivery
627	627	5 year at the time that the renewable energy resources are
628	628	6 procured. Once the determination as to the amount of
629	629	7 renewable energy resources to procure is made based on the
630	630	8 calculations set forth in this subparagraph (E) and the
631	631	9 contracts procuring those amounts are executed, no
632	632	10 subsequent rate impact determinations shall be made and no
633	633	11 adjustments to those contract amounts shall be allowed.
634	634	12 All costs incurred under such contracts shall be fully
635	635	13 recoverable by the electric utility as provided in this
636	636	14 Section.
637	637	15 (F) If the limitation on the amount of renewable
638	638	16 energy resources procured in subparagraph (E) of this
639	639	17 paragraph (1) prevents the Agency from meeting all of the
640	640	18 goals in this subsection (c), the Agency's long-term plan
641	641	19 shall prioritize compliance with the requirements of this
642	642	20 subsection (c) regarding renewable energy credits in the
643	643	21 following order:
644	644	22 (i) renewable energy credits under existing
645	645	23 contractual obligations as of June 1, 2021;
646	646	24 (i-5) funding for the Illinois Solar for All
647	647	25 Program, as described in subparagraph (O) of this
648	648	26 paragraph (1);
649	649
650	650
651	651
652	652
653	653
654	654	HB2810 - 17 - LRB104 08813 BDA 18868 b
655	655
656	656
657	657	HB2810- 18 -LRB104 08813 BDA 18868 b HB2810 - 18 - LRB104 08813 BDA 18868 b
658	658	HB2810 - 18 - LRB104 08813 BDA 18868 b
659	659	1 (ii) renewable energy credits necessary to comply
660	660	2 with the new wind and new photovoltaic procurement
661	661	3 requirements described in items (i) through (iii) of
662	662	4 subparagraph (C) of this paragraph (1); and
663	663	5 (iii) renewable energy credits necessary to meet
664	664	6 the remaining requirements of this subsection (c).
665	665	7 (G) The following provisions shall apply to the
666	666	8 Agency's procurement of renewable energy credits under
667	667	9 this subsection (c):
668	668	10 (i) Notwithstanding whether a long-term renewable
669	669	11 resources procurement plan has been approved, the
670	670	12 Agency shall conduct an initial forward procurement
671	671	13 for renewable energy credits from new utility-scale
672	672	14 wind projects within 160 days after June 1, 2017 (the
673	673	15 effective date of Public Act 99-906). For the purposes
674	674	16 of this initial forward procurement, the Agency shall
675	675	17 solicit 15-year contracts for delivery of 1,000,000
676	676	18 renewable energy credits delivered annually from new
677	677	19 utility-scale wind projects to begin delivery on June
678	678	20 1, 2019, if available, but not later than June 1, 2021,
679	679	21 unless the project has delays in the establishment of
680	680	22 an operating interconnection with the applicable
681	681	23 transmission or distribution system as a result of the
682	682	24 actions or inactions of the transmission or
683	683	25 distribution provider, or other causes for force
684	684	26 majeure as outlined in the procurement contract, in
685	685
686	686
687	687
688	688
689	689
690	690	HB2810 - 18 - LRB104 08813 BDA 18868 b
691	691
692	692
693	693	HB2810- 19 -LRB104 08813 BDA 18868 b HB2810 - 19 - LRB104 08813 BDA 18868 b
694	694	HB2810 - 19 - LRB104 08813 BDA 18868 b
695	695	1 which case, not later than June 1, 2022. Payments to
696	696	2 suppliers of renewable energy credits shall commence
697	697	3 upon delivery. Renewable energy credits procured under
698	698	4 this initial procurement shall be included in the
699	699	5 Agency's long-term plan and shall apply to all
700	700	6 renewable energy goals in this subsection (c).
701	701	7 (ii) Notwithstanding whether a long-term renewable
702	702	8 resources procurement plan has been approved, the
703	703	9 Agency shall conduct an initial forward procurement
704	704	10 for renewable energy credits from new utility-scale
705	705	11 solar projects and brownfield site photovoltaic
706	706	12 projects within one year after June 1, 2017 (the
707	707	13 effective date of Public Act 99-906). For the purposes
708	708	14 of this initial forward procurement, the Agency shall
709	709	15 solicit 15-year contracts for delivery of 1,000,000
710	710	16 renewable energy credits delivered annually from new
711	711	17 utility-scale solar projects and brownfield site
712	712	18 photovoltaic projects to begin delivery on June 1,
713	713	19 2019, if available, but not later than June 1, 2021,
714	714	20 unless the project has delays in the establishment of
715	715	21 an operating interconnection with the applicable
716	716	22 transmission or distribution system as a result of the
717	717	23 actions or inactions of the transmission or
718	718	24 distribution provider, or other causes for force
719	719	25 majeure as outlined in the procurement contract, in
720	720	26 which case, not later than June 1, 2022. The Agency may
721	721
722	722
723	723
724	724
725	725
726	726	HB2810 - 19 - LRB104 08813 BDA 18868 b
727	727
728	728
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730	730	HB2810 - 20 - LRB104 08813 BDA 18868 b
731	731	1 structure this initial procurement in one or more
732	732	2 discrete procurement events. Payments to suppliers of
733	733	3 renewable energy credits shall commence upon delivery.
734	734	4 Renewable energy credits procured under this initial
735	735	5 procurement shall be included in the Agency's
736	736	6 long-term plan and shall apply to all renewable energy
737	737	7 goals in this subsection (c).
738	738	8 (iii) Notwithstanding whether the Commission has
739	739	9 approved the periodic long-term renewable resources
740	740	10 procurement plan revision described in Section
741	741	11 16-111.5 of the Public Utilities Act, the Agency shall
742	742	12 conduct at least one subsequent forward procurement
743	743	13 for renewable energy credits from new utility-scale
744	744	14 wind projects, new utility-scale solar projects, and
745	745	15 new brownfield site photovoltaic projects within 240
746	746	16 days after the effective date of this amendatory Act
747	747	17 of the 102nd General Assembly in quantities necessary
748	748	18 to meet the requirements of subparagraph (C) of this
749	749	19 paragraph (1) through the delivery year beginning June
750	750	20 1, 2021.
751	751	21 (iv) Notwithstanding whether the Commission has
752	752	22 approved the periodic long-term renewable resources
753	753	23 procurement plan revision described in Section
754	754	24 16-111.5 of the Public Utilities Act, the Agency shall
755	755	25 open capacity for each category in the Adjustable
756	756	26 Block program within 90 days after the effective date
757	757
758	758
759	759
760	760
761	761
762	762	HB2810 - 20 - LRB104 08813 BDA 18868 b
763	763
764	764
765	765	HB2810- 21 -LRB104 08813 BDA 18868 b HB2810 - 21 - LRB104 08813 BDA 18868 b
766	766	HB2810 - 21 - LRB104 08813 BDA 18868 b
767	767	1 of this amendatory Act of the 102nd General Assembly
768	768	2 manner:
769	769	3 (1) The Agency shall open the first block of
770	770	4 annual capacity for the category described in item
771	771	5 (i) of subparagraph (K) of this paragraph (1). The
772	772	6 first block of annual capacity for item (i) shall
773	773	7 be for at least 75 megawatts of total nameplate
774	774	8 capacity. The price of the renewable energy credit
775	775	9 for this block of capacity shall be 4% less than
776	776	10 the price of the last open block in this category.
777	777	11 Projects on a waitlist shall be awarded contracts
778	778	12 first in the order in which they appear on the
779	779	13 waitlist. Notwithstanding anything to the
780	780	14 contrary, for those renewable energy credits that
781	781	15 qualify and are procured under this subitem (1) of
782	782	16 this item (iv), the renewable energy credit
783	783	17 delivery contract value shall be paid in full,
784	784	18 based on the estimated generation during the first
785	785	19 15 years of operation, by the contracting
786	786	20 utilities at the time that the facility producing
787	787	21 the renewable energy credits is interconnected at
788	788	22 the distribution system level of the utility and
789	789	23 verified as energized and in compliance by the
790	790	24 Program Administrator. The electric utility shall
791	791	25 receive and retire all renewable energy credits
792	792	26 generated by the project for the first 15 years of
793	793
794	794
795	795
796	796
797	797
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799	799
800	800
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802	802	HB2810 - 22 - LRB104 08813 BDA 18868 b
803	803	1 operation. Renewable energy credits generated by
804	804	2 the project thereafter shall not be transferred
805	805	3 under the renewable energy credit delivery
806	806	4 contract with the counterparty electric utility.
807	807	5 (2) The Agency shall open the first block of
808	808	6 annual capacity for the category described in item
809	809	7 (ii) of subparagraph (K) of this paragraph (1).
810	810	8 The first block of annual capacity for item (ii)
811	811	9 shall be for at least 75 megawatts of total
812	812	10 nameplate capacity.
813	813	11 (A) The price of the renewable energy
814	814	12 credit for any project on a waitlist for this
815	815	13 category before the opening of this block
816	816	14 shall be 4% less than the price of the last
817	817	15 open block in this category. Projects on the
818	818	16 waitlist shall be awarded contracts first in
819	819	17 the order in which they appear on the
820	820	18 waitlist. Any projects that are less than or
821	821	19 equal to 25 kilowatts in size on the waitlist
822	822	20 for this capacity shall be moved to the
823	823	21 waitlist for paragraph (1) of this item (iv).
824	824	22 Notwithstanding anything to the contrary,
825	825	23 projects that were on the waitlist prior to
826	826	24 opening of this block shall not be required to
827	827	25 be in compliance with the requirements of
828	828	26 subparagraph (Q) of this paragraph (1) of this
829	829
830	830
831	831
832	832
833	833
834	834	HB2810 - 22 - LRB104 08813 BDA 18868 b
835	835
836	836
837	837	HB2810- 23 -LRB104 08813 BDA 18868 b HB2810 - 23 - LRB104 08813 BDA 18868 b
838	838	HB2810 - 23 - LRB104 08813 BDA 18868 b
839	839	1 subsection (c). Notwithstanding anything to
840	840	2 the contrary, for those renewable energy
841	841	3 credits procured from projects that were on
842	842	4 the waitlist for this category before the
843	843	5 opening of this block 20% of the renewable
844	844	6 energy credit delivery contract value, based
845	845	7 on the estimated generation during the first
846	846	8 15 years of operation, shall be paid by the
847	847	9 contracting utilities at the time that the
848	848	10 facility producing the renewable energy
849	849	11 credits is interconnected at the distribution
850	850	12 system level of the utility and verified as
851	851	13 energized by the Program Administrator. The
852	852	14 remaining portion shall be paid ratably over
853	853	15 the subsequent 4-year period. The electric
854	854	16 utility shall receive and retire all renewable
855	855	17 energy credits generated by the project during
856	856	18 the first 15 years of operation. Renewable
857	857	19 energy credits generated by the project
858	858	20 thereafter shall not be transferred under the
859	859	21 renewable energy credit delivery contract with
860	860	22 the counterparty electric utility.
861	861	23 (B) The price of renewable energy credits
862	862	24 for any project not on the waitlist for this
863	863	25 category before the opening of the block shall
864	864	26 be determined and published by the Agency.
865	865
866	866
867	867
868	868
869	869
870	870	HB2810 - 23 - LRB104 08813 BDA 18868 b
871	871
872	872
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874	874	HB2810 - 24 - LRB104 08813 BDA 18868 b
875	875	1 Projects not on a waitlist as of the opening
876	876	2 of this block shall be subject to the
877	877	3 requirements of subparagraph (Q) of this
878	878	4 paragraph (1), as applicable. Projects not on
879	879	5 a waitlist as of the opening of this block
880	880	6 shall be subject to the contract provisions
881	881	7 outlined in item (iii) of subparagraph (L) of
882	882	8 this paragraph (1). The Agency shall strive to
883	883	9 publish updated prices and an updated
884	884	10 renewable energy credit delivery contract as
885	885	11 quickly as possible.
886	886	12 (3) For opening the first 2 blocks of annual
887	887	13 capacity for projects participating in item (iii)
888	888	14 of subparagraph (K) of paragraph (1) of subsection
889	889	15 (c), projects shall be selected exclusively from
890	890	16 those projects on the ordinal waitlists of
891	891	17 community renewable generation projects
892	892	18 established by the Agency based on the status of
893	893	19 those ordinal waitlists as of December 31, 2020,
894	894	20 and only those projects previously determined to
895	895	21 be eligible for the Agency's April 2019 community
896	896	22 solar project selection process.
897	897	23 The first 2 blocks of annual capacity for item
898	898	24 (iii) shall be for 250 megawatts of total
899	899	25 nameplate capacity, with both blocks opening
900	900	26 simultaneously under the schedule outlined in the
901	901
902	902
903	903
904	904
905	905
906	906	HB2810 - 24 - LRB104 08813 BDA 18868 b
907	907
908	908
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910	910	HB2810 - 25 - LRB104 08813 BDA 18868 b
911	911	1 paragraphs below. Projects shall be selected as
912	912	2 follows:
913	913	3 (A) The geographic balance of selected
914	914	4 projects shall follow the Group classification
915	915	5 found in the Agency's Revised Long-Term
916	916	6 Renewable Resources Procurement Plan, with 70%
917	917	7 of capacity allocated to projects on the Group
918	918	8 B waitlist and 30% of capacity allocated to
919	919	9 projects on the Group A waitlist.
920	920	10 (B) Contract awards for waitlisted
921	921	11 projects shall be allocated proportionate to
922	922	12 the total nameplate capacity amount across
923	923	13 both ordinal waitlists associated with that
924	924	14 applicant firm or its affiliates, subject to
925	925	15 the following conditions.
926	926	16 (i) Each applicant firm having a
927	927	17 waitlisted project eligible for selection
928	928	18 shall receive no less than 500 kilowatts
929	929	19 in awarded capacity across all groups, and
930	930	20 no approved vendor may receive more than
931	931	21 20% of each Group's waitlist allocation.
932	932	22 (ii) Each applicant firm, upon
933	933	23 receiving an award of program capacity
934	934	24 proportionate to its waitlisted capacity,
935	935	25 may then determine which waitlisted
936	936	26 projects it chooses to be selected for a
937	937
938	938
939	939
940	940
941	941
942	942	HB2810 - 25 - LRB104 08813 BDA 18868 b
943	943
944	944
945	945	HB2810- 26 -LRB104 08813 BDA 18868 b HB2810 - 26 - LRB104 08813 BDA 18868 b
946	946	HB2810 - 26 - LRB104 08813 BDA 18868 b
947	947	1 contract award up to that capacity amount.
948	948	2 (iii) Assuming all other program
949	949	3 requirements are met, applicant firms may
950	950	4 adjust the nameplate capacity of applicant
951	951	5 projects without losing waitlist
952	952	6 eligibility, so long as no project is
953	953	7 greater than 2,000 kilowatts in size.
954	954	8 (iv) Assuming all other program
955	955	9 requirements are met, applicant firms may
956	956	10 adjust the expected production associated
957	957	11 with applicant projects, subject to
958	958	12 verification by the Program Administrator.
959	959	13 (C) After a review of affiliate
960	960	14 information and the current ordinal waitlists,
961	961	15 the Agency shall announce the nameplate
962	962	16 capacity award amounts associated with
963	963	17 applicant firms no later than 90 days after
964	964	18 the effective date of this amendatory Act of
965	965	19 the 102nd General Assembly.
966	966	20 (D) Applicant firms shall submit their
967	967	21 portfolio of projects used to satisfy those
968	968	22 contract awards no less than 90 days after the
969	969	23 Agency's announcement. The total nameplate
970	970	24 capacity of all projects used to satisfy that
971	971	25 portfolio shall be no greater than the
972	972	26 Agency's nameplate capacity award amount
973	973
974	974
975	975
976	976
977	977
978	978	HB2810 - 26 - LRB104 08813 BDA 18868 b
979	979
980	980
981	981	HB2810- 27 -LRB104 08813 BDA 18868 b HB2810 - 27 - LRB104 08813 BDA 18868 b
982	982	HB2810 - 27 - LRB104 08813 BDA 18868 b
983	983	1 associated with that applicant firm. An
984	984	2 applicant firm may decline, in whole or in
985	985	3 part, its nameplate capacity award without
986	986	4 penalty, with such unmet capacity rolled over
987	987	5 to the next block opening for project
988	988	6 selection under item (iii) of subparagraph (K)
989	989	7 of this subsection (c). Any projects not
990	990	8 included in an applicant firm's portfolio may
991	991	9 reapply without prejudice upon the next block
992	992	10 reopening for project selection under item
993	993	11 (iii) of subparagraph (K) of this subsection
994	994	12 (c).
995	995	13 (E) The renewable energy credit delivery
996	996	14 contract shall be subject to the contract and
997	997	15 payment terms outlined in item (iv) of
998	998	16 subparagraph (L) of this subsection (c).
999	999	17 Contract instruments used for this
1000	1000	18 subparagraph shall contain the following
1001	1001	19 terms:
1002	1002	20 (i) Renewable energy credit prices
1003	1003	21 shall be fixed, without further adjustment
1004	1004	22 under any other provision of this Act or
1005	1005	23 for any other reason, at 10% lower than
1006	1006	24 prices applicable to the last open block
1007	1007	25 for this category, inclusive of any adders
1008	1008	26 available for achieving a minimum of 50%
1009	1009
1010	1010
1011	1011
1012	1012
1013	1013
1014	1014	HB2810 - 27 - LRB104 08813 BDA 18868 b
1015	1015
1016	1016
1017	1017	HB2810- 28 -LRB104 08813 BDA 18868 b HB2810 - 28 - LRB104 08813 BDA 18868 b
1018	1018	HB2810 - 28 - LRB104 08813 BDA 18868 b
1019	1019	1 of subscribers to the project's nameplate
1020	1020	2 capacity being residential or small
1021	1021	3 commercial customers with subscriptions of
1022	1022	4 below 25 kilowatts in size;
1023	1023	5 (ii) A requirement that a minimum of
1024	1024	6 50% of subscribers to the project's
1025	1025	7 nameplate capacity be residential or small
1026	1026	8 commercial customers with subscriptions of
1027	1027	9 below 25 kilowatts in size;
1028	1028	10 (iii) Permission for the ability of a
1029	1029	11 contract holder to substitute projects
1030	1030	12 with other waitlisted projects without
1031	1031	13 penalty should a project receive a
1032	1032	14 non-binding estimate of costs to construct
1033	1033	15 the interconnection facilities and any
1034	1034	16 required distribution upgrades associated
1035	1035	17 with that project of greater than 30 cents
1036	1036	18 per watt AC of that project's nameplate
1037	1037	19 capacity. In developing the applicable
1038	1038	20 contract instrument, the Agency may
1039	1039	21 consider whether other circumstances
1040	1040	22 outside of the control of the applicant
1041	1041	23 firm should also warrant project
1042	1042	24 substitution rights.
1043	1043	25 The Agency shall publish a finalized
1044	1044	26 updated renewable energy credit delivery
1045	1045
1046	1046
1047	1047
1048	1048
1049	1049
1050	1050	HB2810 - 28 - LRB104 08813 BDA 18868 b
1051	1051
1052	1052
1053	1053	HB2810- 29 -LRB104 08813 BDA 18868 b HB2810 - 29 - LRB104 08813 BDA 18868 b
1054	1054	HB2810 - 29 - LRB104 08813 BDA 18868 b
1055	1055	1 contract developed consistent with these terms
1056	1056	2 and conditions no less than 30 days before
1057	1057	3 applicant firms must submit their portfolio of
1058	1058	4 projects pursuant to item (D).
1059	1059	5 (F) To be eligible for an award, the
1060	1060	6 applicant firm shall certify that not less
1061	1061	7 than prevailing wage, as determined pursuant
1062	1062	8 to the Illinois Prevailing Wage Act, was or
1063	1063	9 will be paid to employees who are engaged in
1064	1064	10 construction activities associated with a
1065	1065	11 selected project.
1066	1066	12 (4) The Agency shall open the first block of
1067	1067	13 annual capacity for the category described in item
1068	1068	14 (iv) of subparagraph (K) of this paragraph (1).
1069	1069	15 The first block of annual capacity for item (iv)
1070	1070	16 shall be for at least 50 megawatts of total
1071	1071	17 nameplate capacity. Renewable energy credit prices
1072	1072	18 shall be fixed, without further adjustment under
1073	1073	19 any other provision of this Act or for any other
1074	1074	20 reason, at the price in the last open block in the
1075	1075	21 category described in item (ii) of subparagraph
1076	1076	22 (K) of this paragraph (1). Pricing for future
1077	1077	23 blocks of annual capacity for this category may be
1078	1078	24 adjusted in the Agency's second revision to its
1079	1079	25 Long-Term Renewable Resources Procurement Plan.
1080	1080	26 Projects in this category shall be subject to the
1081	1081
1082	1082
1083	1083
1084	1084
1085	1085
1086	1086	HB2810 - 29 - LRB104 08813 BDA 18868 b
1087	1087
1088	1088
1089	1089	HB2810- 30 -LRB104 08813 BDA 18868 b HB2810 - 30 - LRB104 08813 BDA 18868 b
1090	1090	HB2810 - 30 - LRB104 08813 BDA 18868 b
1091	1091	1 contract terms outlined in item (iv) of
1092	1092	2 subparagraph (L) of this paragraph (1).
1093	1093	3 (5) The Agency shall open the equivalent of 2
1094	1094	4 years of annual capacity for the category
1095	1095	5 described in item (v) of subparagraph (K) of this
1096	1096	6 paragraph (1). The first block of annual capacity
1097	1097	7 for item (v) shall be for at least 10 megawatts of
1098	1098	8 total nameplate capacity. Notwithstanding the
1099	1099	9 provisions of item (v) of subparagraph (K) of this
1100	1100	10 paragraph (1), for the purpose of this initial
1101	1101	11 block, the agency shall accept new project
1102	1102	12 applications intended to increase the diversity of
1103	1103	13 areas hosting community solar projects, the
1104	1104	14 business models of projects, and the size of
1105	1105	15 projects, as described by the Agency in its
1106	1106	16 long-term renewable resources procurement plan
1107	1107	17 that is approved as of the effective date of this
1108	1108	18 amendatory Act of the 102nd General Assembly.
1109	1109	19 Projects in this category shall be subject to the
1110	1110	20 contract terms outlined in item (iii) of
1111	1111	21 subsection (L) of this paragraph (1).
1112	1112	22 (6) The Agency shall open the first blocks of
1113	1113	23 annual capacity for the category described in item
1114	1114	24 (vi) of subparagraph (K) of this paragraph (1),
1115	1115	25 with allocations of capacity within the block
1116	1116	26 generally matching the historical share of block
1117	1117
1118	1118
1119	1119
1120	1120
1121	1121
1122	1122	HB2810 - 30 - LRB104 08813 BDA 18868 b
1123	1123
1124	1124
1125	1125	HB2810- 31 -LRB104 08813 BDA 18868 b HB2810 - 31 - LRB104 08813 BDA 18868 b
1126	1126	HB2810 - 31 - LRB104 08813 BDA 18868 b
1127	1127	1 capacity allocated between the category described
1128	1128	2 in items (i) and (ii) of subparagraph (K) of this
1129	1129	3 paragraph (1). The first two blocks of annual
1130	1130	4 capacity for item (vi) shall be for at least 75
1131	1131	5 megawatts of total nameplate capacity. The price
1132	1132	6 of renewable energy credits for the blocks of
1133	1133	7 capacity shall be 4% less than the price of the
1134	1134	8 last open blocks in the categories described in
1135	1135	9 items (i) and (ii) of subparagraph (K) of this
1136	1136	10 paragraph (1). Pricing for future blocks of annual
1137	1137	11 capacity for this category may be adjusted in the
1138	1138	12 Agency's second revision to its Long-Term
1139	1139	13 Renewable Resources Procurement Plan. Projects in
1140	1140	14 this category shall be subject to the applicable
1141	1141	15 contract terms outlined in items (ii) and (iii) of
1142	1142	16 subparagraph (L) of this paragraph (1).
1143	1143	17 (v) Upon the effective date of this amendatory Act
1144	1144	18 of the 102nd General Assembly, for all competitive
1145	1145	19 procurements and any procurements of renewable energy
1146	1146	20 credit from new utility-scale wind and new
1147	1147	21 utility-scale photovoltaic projects, the Agency shall
1148	1148	22 procure indexed renewable energy credits and direct
1149	1149	23 respondents to offer a strike price.
1150	1150	24 (1) The purchase price of the indexed
1151	1151	25 renewable energy credit payment shall be
1152	1152	26 calculated for each settlement period. That
1153	1153
1154	1154
1155	1155
1156	1156
1157	1157
1158	1158	HB2810 - 31 - LRB104 08813 BDA 18868 b
1159	1159
1160	1160
1161	1161	HB2810- 32 -LRB104 08813 BDA 18868 b HB2810 - 32 - LRB104 08813 BDA 18868 b
1162	1162	HB2810 - 32 - LRB104 08813 BDA 18868 b
1163	1163	1 payment, for any settlement period, shall be equal
1164	1164	2 to the difference resulting from subtracting the
1165	1165	3 strike price from the index price for that
1166	1166	4 settlement period. If this difference results in a
1167	1167	5 negative number, the indexed REC counterparty
1168	1168	6 shall owe the seller the absolute value multiplied
1169	1169	7 by the quantity of energy produced in the relevant
1170	1170	8 settlement period. If this difference results in a
1171	1171	9 positive number, the seller shall owe the indexed
1172	1172	10 REC counterparty this amount multiplied by the
1173	1173	11 quantity of energy produced in the relevant
1174	1174	12 settlement period.
1175	1175	13 (2) Parties shall cash settle every month,
1176	1176	14 summing up all settlements (both positive and
1177	1177	15 negative, if applicable) for the prior month.
1178	1178	16 (3) To ensure funding in the annual budget
1179	1179	17 established under subparagraph (E) for indexed
1180	1180	18 renewable energy credit procurements for each year
1181	1181	19 of the term of such contracts, which must have a
1182	1182	20 minimum tenure of 20 calendar years, the
1183	1183	21 procurement administrator, Agency, Commission
1184	1184	22 staff, and procurement monitor shall quantify the
1185	1185	23 annual cost of the contract by utilizing an
1186	1186	24 industry-standard, third-party forward price curve
1187	1187	25 for energy at the appropriate hub or load zone,
1188	1188	26 including the estimated magnitude and timing of
1189	1189
1190	1190
1191	1191
1192	1192
1193	1193
1194	1194	HB2810 - 32 - LRB104 08813 BDA 18868 b
1195	1195
1196	1196
1197	1197	HB2810- 33 -LRB104 08813 BDA 18868 b HB2810 - 33 - LRB104 08813 BDA 18868 b
1198	1198	HB2810 - 33 - LRB104 08813 BDA 18868 b
1199	1199	1 the price effects related to federal carbon
1200	1200	2 controls. Each forward price curve shall contain a
1201	1201	3 specific value of the forecasted market price of
1202	1202	4 electricity for each annual delivery year of the
1203	1203	5 contract. For procurement planning purposes, the
1204	1204	6 impact on the annual budget for the cost of
1205	1205	7 indexed renewable energy credits for each delivery
1206	1206	8 year shall be determined as the expected annual
1207	1207	9 contract expenditure for that year, equaling the
1208	1208	10 difference between (i) the sum across all relevant
1209	1209	11 contracts of the applicable strike price
1210	1210	12 multiplied by contract quantity and (ii) the sum
1211	1211	13 across all relevant contracts of the forward price
1212	1212	14 curve for the applicable load zone for that year
1213	1213	15 multiplied by contract quantity. The contracting
1214	1214	16 utility shall not assume an obligation in excess
1215	1215	17 of the estimated annual cost of the contracts for
1216	1216	18 indexed renewable energy credits. Forward curves
1217	1217	19 shall be revised on an annual basis as updated
1218	1218	20 forward price curves are released and filed with
1219	1219	21 the Commission in the proceeding approving the
1220	1220	22 Agency's most recent long-term renewable resources
1221	1221	23 procurement plan. If the expected contract spend
1222	1222	24 is higher or lower than the total quantity of
1223	1223	25 contracts multiplied by the forward price curve
1224	1224	26 value for that year, the forward price curve shall
1225	1225
1226	1226
1227	1227
1228	1228
1229	1229
1230	1230	HB2810 - 33 - LRB104 08813 BDA 18868 b
1231	1231
1232	1232
1233	1233	HB2810- 34 -LRB104 08813 BDA 18868 b HB2810 - 34 - LRB104 08813 BDA 18868 b
1234	1234	HB2810 - 34 - LRB104 08813 BDA 18868 b
1235	1235	1 be updated by the procurement administrator, in
1236	1236	2 consultation with the Agency, Commission staff,
1237	1237	3 and procurement monitors, using then-currently
1238	1238	4 available price forecast data and additional
1239	1239	5 budget dollars shall be obligated or reobligated
1240	1240	6 as appropriate.
1241	1241	7 (4) To ensure that indexed renewable energy
1242	1242	8 credit prices remain predictable and affordable,
1243	1243	9 the Agency may consider the institution of a price
1244	1244	10 collar on REC prices paid under indexed renewable
1245	1245	11 energy credit procurements establishing floor and
1246	1246	12 ceiling REC prices applicable to indexed REC
1247	1247	13 contract prices. Any price collars applicable to
1248	1248	14 indexed REC procurements shall be proposed by the
1249	1249	15 Agency through its long-term renewable resources
1250	1250	16 procurement plan.
1251	1251	17 (vi) All procurements under this subparagraph (G),
1252	1252	18 including the procurement of renewable energy credits
1253	1253	19 from hydropower facilities, shall comply with the
1254	1254	20 geographic requirements in subparagraph (I) of this
1255	1255	21 paragraph (1) and shall follow the procurement
1256	1256	22 processes and procedures described in this Section and
1257	1257	23 Section 16-111.5 of the Public Utilities Act to the
1258	1258	24 extent practicable, and these processes and procedures
1259	1259	25 may be expedited to accommodate the schedule
1260	1260	26 established by this subparagraph (G).
1261	1261
1262	1262
1263	1263
1264	1264
1265	1265
1266	1266	HB2810 - 34 - LRB104 08813 BDA 18868 b
1267	1267
1268	1268
1269	1269	HB2810- 35 -LRB104 08813 BDA 18868 b HB2810 - 35 - LRB104 08813 BDA 18868 b
1270	1270	HB2810 - 35 - LRB104 08813 BDA 18868 b
1271	1271	1 (vii) On and after the effective date of this
1272	1272	2 amendatory Act of the 103rd General Assembly, for all
1273	1273	3 procurements of renewable energy credits from
1274	1274	4 hydropower facilities, the Agency shall establish
1275	1275	5 contract terms designed to optimize existing
1276	1276	6 hydropower facilities through modernization or
1277	1277	7 retooling and establish new hydropower facilities at
1278	1278	8 existing dams. Procurements made under this item (vii)
1279	1279	9 shall prioritize projects located in designated
1280	1280	10 environmental justice communities, as defined in
1281	1281	11 subsection (b) of Section 1-56 of this Act, or in
1282	1282	12 projects located in units of local government with
1283	1283	13 median incomes that do not exceed 82% of the median
1284	1284	14 income of the State.
1285	1285	15 (H) The procurement of renewable energy resources for
1286	1286	16 a given delivery year shall be reduced as described in
1287	1287	17 this subparagraph (H) if an alternative retail electric
1288	1288	18 supplier meets the requirements described in this
1289	1289	19 subparagraph (H).
1290	1290	20 (i) Within 45 days after June 1, 2017 (the
1291	1291	21 effective date of Public Act 99-906), an alternative
1292	1292	22 retail electric supplier or its successor shall submit
1293	1293	23 an informational filing to the Illinois Commerce
1294	1294	24 Commission certifying that, as of December 31, 2015,
1295	1295	25 the alternative retail electric supplier owned one or
1296	1296	26 more electric generating facilities that generates
1297	1297
1298	1298
1299	1299
1300	1300
1301	1301
1302	1302	HB2810 - 35 - LRB104 08813 BDA 18868 b
1303	1303
1304	1304
1305	1305	HB2810- 36 -LRB104 08813 BDA 18868 b HB2810 - 36 - LRB104 08813 BDA 18868 b
1306	1306	HB2810 - 36 - LRB104 08813 BDA 18868 b
1307	1307	1 renewable energy resources as defined in Section 1-10
1308	1308	2 of this Act, provided that such facilities are not
1309	1309	3 powered by wind or photovoltaics, and the facilities
1310	1310	4 generate one renewable energy credit for each
1311	1311	5 megawatthour of energy produced from the facility.
1312	1312	6 The informational filing shall identify each
1313	1313	7 facility that was eligible to satisfy the alternative
1314	1314	8 retail electric supplier's obligations under Section
1315	1315	9 16-115D of the Public Utilities Act as described in
1316	1316	10 this item (i).
1317	1317	11 (ii) For a given delivery year, the alternative
1318	1318	12 retail electric supplier may elect to supply its
1319	1319	13 retail customers with renewable energy credits from
1320	1320	14 the facility or facilities described in item (i) of
1321	1321	15 this subparagraph (H) that continue to be owned by the
1322	1322	16 alternative retail electric supplier.
1323	1323	17 (iii) The alternative retail electric supplier
1324	1324	18 shall notify the Agency and the applicable utility, no
1325	1325	19 later than February 28 of the year preceding the
1326	1326	20 applicable delivery year or 15 days after June 1, 2017
1327	1327	21 (the effective date of Public Act 99-906), whichever
1328	1328	22 is later, of its election under item (ii) of this
1329	1329	23 subparagraph (H) to supply renewable energy credits to
1330	1330	24 retail customers of the utility. Such election shall
1331	1331	25 identify the amount of renewable energy credits to be
1332	1332	26 supplied by the alternative retail electric supplier
1333	1333
1334	1334
1335	1335
1336	1336
1337	1337
1338	1338	HB2810 - 36 - LRB104 08813 BDA 18868 b
1339	1339
1340	1340
1341	1341	HB2810- 37 -LRB104 08813 BDA 18868 b HB2810 - 37 - LRB104 08813 BDA 18868 b
1342	1342	HB2810 - 37 - LRB104 08813 BDA 18868 b
1343	1343	1 to the utility's retail customers and the source of
1344	1344	2 the renewable energy credits identified in the
1345	1345	3 informational filing as described in item (i) of this
1346	1346	4 subparagraph (H), subject to the following
1347	1347	5 limitations:
1348	1348	6 For the delivery year beginning June 1, 2018,
1349	1349	7 the maximum amount of renewable energy credits to
1350	1350	8 be supplied by an alternative retail electric
1351	1351	9 supplier under this subparagraph (H) shall be 68%
1352	1352	10 multiplied by 25% multiplied by 14.5% multiplied
1353	1353	11 by the amount of metered electricity
1354	1354	12 (megawatt-hours) delivered by the alternative
1355	1355	13 retail electric supplier to Illinois retail
1356	1356	14 customers during the delivery year ending May 31,
1357	1357	15 2016.
1358	1358	16 For delivery years beginning June 1, 2019 and
1359	1359	17 each year thereafter, the maximum amount of
1360	1360	18 renewable energy credits to be supplied by an
1361	1361	19 alternative retail electric supplier under this
1362	1362	20 subparagraph (H) shall be 68% multiplied by 50%
1363	1363	21 multiplied by 16% multiplied by the amount of
1364	1364	22 metered electricity (megawatt-hours) delivered by
1365	1365	23 the alternative retail electric supplier to
1366	1366	24 Illinois retail customers during the delivery year
1367	1367	25 ending May 31, 2016, provided that the 16% value
1368	1368	26 shall increase by 1.5% each delivery year
1369	1369
1370	1370
1371	1371
1372	1372
1373	1373
1374	1374	HB2810 - 37 - LRB104 08813 BDA 18868 b
1375	1375
1376	1376
1377	1377	HB2810- 38 -LRB104 08813 BDA 18868 b HB2810 - 38 - LRB104 08813 BDA 18868 b
1378	1378	HB2810 - 38 - LRB104 08813 BDA 18868 b
1379	1379	1 thereafter to 25% by the delivery year beginning
1380	1380	2 June 1, 2025, and thereafter the 25% value shall
1381	1381	3 apply to each delivery year.
1382	1382	4 For each delivery year, the total amount of
1383	1383	5 renewable energy credits supplied by all alternative
1384	1384	6 retail electric suppliers under this subparagraph (H)
1385	1385	7 shall not exceed 9% of the Illinois target renewable
1386	1386	8 energy credit quantity. The Illinois target renewable
1387	1387	9 energy credit quantity for the delivery year beginning
1388	1388	10 June 1, 2018 is 14.5% multiplied by the total amount of
1389	1389	11 metered electricity (megawatt-hours) delivered in the
1390	1390	12 delivery year immediately preceding that delivery
1391	1391	13 year, provided that the 14.5% shall increase by 1.5%
1392	1392	14 each delivery year thereafter to 25% by the delivery
1393	1393	15 year beginning June 1, 2025, and thereafter the 25%
1394	1394	16 value shall apply to each delivery year.
1395	1395	17 If the requirements set forth in items (i) through
1396	1396	18 (iii) of this subparagraph (H) are met, the charges
1397	1397	19 that would otherwise be applicable to the retail
1398	1398	20 customers of the alternative retail electric supplier
1399	1399	21 under paragraph (6) of this subsection (c) for the
1400	1400	22 applicable delivery year shall be reduced by the ratio
1401	1401	23 of the quantity of renewable energy credits supplied
1402	1402	24 by the alternative retail electric supplier compared
1403	1403	25 to that supplier's target renewable energy credit
1404	1404	26 quantity. The supplier's target renewable energy
1405	1405
1406	1406
1407	1407
1408	1408
1409	1409
1410	1410	HB2810 - 38 - LRB104 08813 BDA 18868 b
1411	1411
1412	1412
1413	1413	HB2810- 39 -LRB104 08813 BDA 18868 b HB2810 - 39 - LRB104 08813 BDA 18868 b
1414	1414	HB2810 - 39 - LRB104 08813 BDA 18868 b
1415	1415	1 credit quantity for the delivery year beginning June
1416	1416	2 1, 2018 is 14.5% multiplied by the total amount of
1417	1417	3 metered electricity (megawatt-hours) delivered by the
1418	1418	4 alternative retail supplier in that delivery year,
1419	1419	5 provided that the 14.5% shall increase by 1.5% each
1420	1420	6 delivery year thereafter to 25% by the delivery year
1421	1421	7 beginning June 1, 2025, and thereafter the 25% value
1422	1422	8 shall apply to each delivery year.
1423	1423	9 On or before April 1 of each year, the Agency shall
1424	1424	10 annually publish a report on its website that
1425	1425	11 identifies the aggregate amount of renewable energy
1426	1426	12 credits supplied by alternative retail electric
1427	1427	13 suppliers under this subparagraph (H).
1428	1428	14 (I) The Agency shall design its long-term renewable
1429	1429	15 energy procurement plan to maximize the State's interest
1430	1430	16 in the health, safety, and welfare of its residents,
1431	1431	17 including but not limited to minimizing sulfur dioxide,
1432	1432	18 nitrogen oxide, particulate matter and other pollution
1433	1433	19 that adversely affects public health in this State,
1434	1434	20 increasing fuel and resource diversity in this State,
1435	1435	21 enhancing the reliability and resiliency of the
1436	1436	22 electricity distribution system in this State, meeting
1437	1437	23 goals to limit carbon dioxide emissions under federal or
1438	1438	24 State law, and contributing to a cleaner and healthier
1439	1439	25 environment for the citizens of this State. In order to
1440	1440	26 further these legislative purposes, renewable energy
1441	1441
1442	1442
1443	1443
1444	1444
1445	1445
1446	1446	HB2810 - 39 - LRB104 08813 BDA 18868 b
1447	1447
1448	1448
1449	1449	HB2810- 40 -LRB104 08813 BDA 18868 b HB2810 - 40 - LRB104 08813 BDA 18868 b
1450	1450	HB2810 - 40 - LRB104 08813 BDA 18868 b
1451	1451	1 credits shall be eligible to be counted toward the
1452	1452	2 renewable energy requirements of this subsection (c) if
1453	1453	3 they are generated from facilities located in this State.
1454	1454	4 The Agency may qualify renewable energy credits from
1455	1455	5 facilities located in states adjacent to Illinois or
1456	1456	6 renewable energy credits associated with the electricity
1457	1457	7 generated by a utility-scale wind energy facility or
1458	1458	8 utility-scale photovoltaic facility and transmitted by a
1459	1459	9 qualifying direct current project described in subsection
1460	1460	10 (b-5) of Section 8-406 of the Public Utilities Act to a
1461	1461	11 delivery point on the electric transmission grid located
1462	1462	12 in this State or a state adjacent to Illinois, if the
1463	1463	13 generator demonstrates and the Agency determines that the
1464	1464	14 operation of such facility or facilities will help promote
1465	1465	15 the State's interest in the health, safety, and welfare of
1466	1466	16 its residents based on the public interest criteria
1467	1467	17 described above. For the purposes of this Section,
1468	1468	18 renewable resources that are delivered via a high voltage
1469	1469	19 direct current converter station located in Illinois shall
1470	1470	20 be deemed generated in Illinois at the time and location
1471	1471	21 the energy is converted to alternating current by the high
1472	1472	22 voltage direct current converter station if the high
1473	1473	23 voltage direct current transmission line: (i) after the
1474	1474	24 effective date of this amendatory Act of the 102nd General
1475	1475	25 Assembly, was constructed with a project labor agreement;
1476	1476	26 (ii) is capable of transmitting electricity at 525kv;
1477	1477
1478	1478
1479	1479
1480	1480
1481	1481
1482	1482	HB2810 - 40 - LRB104 08813 BDA 18868 b
1483	1483
1484	1484
1485	1485	HB2810- 41 -LRB104 08813 BDA 18868 b HB2810 - 41 - LRB104 08813 BDA 18868 b
1486	1486	HB2810 - 41 - LRB104 08813 BDA 18868 b
1487	1487	1 (iii) has an Illinois converter station located and
1488	1488	2 interconnected in the region of the PJM Interconnection,
1489	1489	3 LLC; (iv) does not operate as a public utility; and (v) if
1490	1490	4 the high voltage direct current transmission line was
1491	1491	5 energized after June 1, 2023. To ensure that the public
1492	1492	6 interest criteria are applied to the procurement and given
1493	1493	7 full effect, the Agency's long-term procurement plan shall
1494	1494	8 describe in detail how each public interest factor shall
1495	1495	9 be considered and weighted for facilities located in
1496	1496	10 states adjacent to Illinois.
1497	1497	11 (J) In order to promote the competitive development of
1498	1498	12 renewable energy resources in furtherance of the State's
1499	1499	13 interest in the health, safety, and welfare of its
1500	1500	14 residents, renewable energy credits shall not be eligible
1501	1501	15 to be counted toward the renewable energy requirements of
1502	1502	16 this subsection (c) if they are sourced from a generating
1503	1503	17 unit whose costs were being recovered through rates
1504	1504	18 regulated by this State or any other state or states on or
1505	1505	19 after January 1, 2017. Each contract executed to purchase
1506	1506	20 renewable energy credits under this subsection (c) shall
1507	1507	21 provide for the contract's termination if the costs of the
1508	1508	22 generating unit supplying the renewable energy credits
1509	1509	23 subsequently begin to be recovered through rates regulated
1510	1510	24 by this State or any other state or states; and each
1511	1511	25 contract shall further provide that, in that event, the
1512	1512	26 supplier of the credits must return 110% of all payments
1513	1513
1514	1514
1515	1515
1516	1516
1517	1517
1518	1518	HB2810 - 41 - LRB104 08813 BDA 18868 b
1519	1519
1520	1520
1521	1521	HB2810- 42 -LRB104 08813 BDA 18868 b HB2810 - 42 - LRB104 08813 BDA 18868 b
1522	1522	HB2810 - 42 - LRB104 08813 BDA 18868 b
1523	1523	1 received under the contract. Amounts returned under the
1524	1524	2 requirements of this subparagraph (J) shall be retained by
1525	1525	3 the utility and all of these amounts shall be used for the
1526	1526	4 procurement of additional renewable energy credits from
1527	1527	5 new wind or new photovoltaic resources as defined in this
1528	1528	6 subsection (c). The long-term plan shall provide that
1529	1529	7 these renewable energy credits shall be procured in the
1530	1530	8 next procurement event.
1531	1531	9 Notwithstanding the limitations of this subparagraph
1532	1532	10 (J), renewable energy credits sourced from generating
1533	1533	11 units that are constructed, purchased, owned, or leased by
1534	1534	12 an electric utility as part of an approved project,
1535	1535	13 program, or pilot under Section 1-56 of this Act shall be
1536	1536	14 eligible to be counted toward the renewable energy
1537	1537	15 requirements of this subsection (c), regardless of how the
1538	1538	16 costs of these units are recovered. As long as a
1539	1539	17 generating unit or an identifiable portion of a generating
1540	1540	18 unit has not had and does not have its costs recovered
1541	1541	19 through rates regulated by this State or any other state,
1542	1542	20 HVDC renewable energy credits associated with that
1543	1543	21 generating unit or identifiable portion thereof shall be
1544	1544	22 eligible to be counted toward the renewable energy
1545	1545	23 requirements of this subsection (c).
1546	1546	24 (K) The long-term renewable resources procurement plan
1547	1547	25 developed by the Agency in accordance with subparagraph
1548	1548	26 (A) of this paragraph (1) shall include an Adjustable
1549	1549
1550	1550
1551	1551
1552	1552
1553	1553
1554	1554	HB2810 - 42 - LRB104 08813 BDA 18868 b
1555	1555
1556	1556
1557	1557	HB2810- 43 -LRB104 08813 BDA 18868 b HB2810 - 43 - LRB104 08813 BDA 18868 b
1558	1558	HB2810 - 43 - LRB104 08813 BDA 18868 b
1559	1559	1 Block program for the procurement of renewable energy
1560	1560	2 credits from new photovoltaic projects that are
1561	1561	3 distributed renewable energy generation devices or new
1562	1562	4 photovoltaic community renewable generation projects. The
1563	1563	5 Adjustable Block program shall be generally designed to
1564	1564	6 provide for the steady, predictable, and sustainable
1565	1565	7 growth of new solar photovoltaic development in Illinois.
1566	1566	8 To this end, the Adjustable Block program shall provide a
1567	1567	9 transparent annual schedule of prices and quantities to
1568	1568	10 enable the photovoltaic market to scale up and for
1569	1569	11 renewable energy credit prices to adjust at a predictable
1570	1570	12 rate over time. The prices set by the Adjustable Block
1571	1571	13 program can be reflected as a set value or as the product
1572	1572	14 of a formula.
1573	1573	15 The Adjustable Block program shall include for each
1574	1574	16 category of eligible projects for each delivery year: a
1575	1575	17 single block of nameplate capacity, a price for renewable
1576	1576	18 energy credits within that block, and the terms and
1577	1577	19 conditions for securing a spot on a waitlist once the
1578	1578	20 block is fully committed or reserved. Except as outlined
1579	1579	21 below, the waitlist of projects in a given year will carry
1580	1580	22 over to apply to the subsequent year when another block is
1581	1581	23 opened. Only projects energized on or after June 1, 2017
1582	1582	24 shall be eligible for the Adjustable Block program. For
1583	1583	25 each category for each delivery year the Agency shall
1584	1584	26 determine the amount of generation capacity in each block,
1585	1585
1586	1586
1587	1587
1588	1588
1589	1589
1590	1590	HB2810 - 43 - LRB104 08813 BDA 18868 b
1591	1591
1592	1592
1593	1593	HB2810- 44 -LRB104 08813 BDA 18868 b HB2810 - 44 - LRB104 08813 BDA 18868 b
1594	1594	HB2810 - 44 - LRB104 08813 BDA 18868 b
1595	1595	1 and the purchase price for each block, provided that the
1596	1596	2 purchase price provided and the total amount of generation
1597	1597	3 in all blocks for all categories shall be sufficient to
1598	1598	4 meet the goals in this subsection (c). The Agency shall
1599	1599	5 strive to issue a single block sized to provide for
1600	1600	6 stability and market growth. The Agency shall establish
1601	1601	7 program eligibility requirements that ensure that projects
1602	1602	8 that enter the program are sufficiently mature to indicate
1603	1603	9 a demonstrable path to completion. The Agency may
1604	1604	10 periodically review its prior decisions establishing the
1605	1605	11 amount of generation capacity in each block, and the
1606	1606	12 purchase price for each block, and may propose, on an
1607	1607	13 expedited basis, changes to these previously set values,
1608	1608	14 including but not limited to redistributing these amounts
1609	1609	15 and the available funds as necessary and appropriate,
1610	1610	16 subject to Commission approval as part of the periodic
1611	1611	17 plan revision process described in Section 16-111.5 of the
1612	1612	18 Public Utilities Act. The Agency may define different
1613	1613	19 block sizes, purchase prices, or other distinct terms and
1614	1614	20 conditions for projects located in different utility
1615	1615	21 service territories if the Agency deems it necessary to
1616	1616	22 meet the goals in this subsection (c).
1617	1617	23 The Adjustable Block program shall include the
1618	1618	24 following categories in at least the following amounts:
1619	1619	25 (i) At least 20% from distributed renewable energy
1620	1620	26 generation devices with a nameplate capacity of no
1621	1621
1622	1622
1623	1623
1624	1624
1625	1625
1626	1626	HB2810 - 44 - LRB104 08813 BDA 18868 b
1627	1627
1628	1628
1629	1629	HB2810- 45 -LRB104 08813 BDA 18868 b HB2810 - 45 - LRB104 08813 BDA 18868 b
1630	1630	HB2810 - 45 - LRB104 08813 BDA 18868 b
1631	1631	1 more than 25 kilowatts.
1632	1632	2 (ii) At least 20% from distributed renewable
1633	1633	3 energy generation devices with a nameplate capacity of
1634	1634	4 more than 25 kilowatts and no more than 5,000
1635	1635	5 kilowatts. The Agency may create sub-categories within
1636	1636	6 this category to account for the differences between
1637	1637	7 projects for small commercial customers, large
1638	1638	8 commercial customers, and public or non-profit
1639	1639	9 customers.
1640	1640	10 (iii) At least 30% from photovoltaic community
1641	1641	11 renewable generation projects. Capacity for this
1642	1642	12 category for the first 2 delivery years after the
1643	1643	13 effective date of this amendatory Act of the 102nd
1644	1644	14 General Assembly shall be allocated to waitlist
1645	1645	15 projects as provided in paragraph (3) of item (iv) of
1646	1646	16 subparagraph (G). Starting in the third delivery year
1647	1647	17 after the effective date of this amendatory Act of the
1648	1648	18 102nd General Assembly or earlier if the Agency
1649	1649	19 determines there is additional capacity needed for to
1650	1650	20 meet previous delivery year requirements, the
1651	1651	21 following shall apply:
1652	1652	22 (1) the Agency shall select projects on a
1653	1653	23 first-come, first-serve basis, however the Agency
1654	1654	24 may suggest additional methods to prioritize
1655	1655	25 projects that are submitted at the same time;
1656	1656	26 (2) projects shall have subscriptions of 25 kW
1657	1657
1658	1658
1659	1659
1660	1660
1661	1661
1662	1662	HB2810 - 45 - LRB104 08813 BDA 18868 b
1663	1663
1664	1664
1665	1665	HB2810- 46 -LRB104 08813 BDA 18868 b HB2810 - 46 - LRB104 08813 BDA 18868 b
1666	1666	HB2810 - 46 - LRB104 08813 BDA 18868 b
1667	1667	1 or less for at least 50% of the facility's
1668	1668	2 nameplate capacity and the Agency shall price the
1669	1669	3 renewable energy credits with that as a factor;
1670	1670	4 (3) projects shall not be colocated with one
1671	1671	5 or more other community renewable generation
1672	1672	6 projects, as defined in the Agency's first revised
1673	1673	7 long-term renewable resources procurement plan
1674	1674	8 approved by the Commission on February 18, 2020,
1675	1675	9 such that the aggregate nameplate capacity exceeds
1676	1676	10 5,000 kilowatts; and
1677	1677	11 (4) projects greater than 2 MW may not apply
1678	1678	12 until after the approval of the Agency's revised
1679	1679	13 Long-Term Renewable Resources Procurement Plan
1680	1680	14 after the effective date of this amendatory Act of
1681	1681	15 the 102nd General Assembly.
1682	1682	16 (iv) At least 15% from distributed renewable
1683	1683	17 generation devices or photovoltaic community renewable
1684	1684	18 generation projects installed on public school land.
1685	1685	19 The Agency may create subcategories within this
1686	1686	20 category to account for the differences between
1687	1687	21 project size or location. Projects located within
1688	1688	22 environmental justice communities or within
1689	1689	23 Organizational Units that fall within Tier 1 or Tier 2
1690	1690	24 shall be given priority. Each of the Agency's periodic
1691	1691	25 updates to its long-term renewable resources
1692	1692	26 procurement plan to incorporate the procurement
1693	1693
1694	1694
1695	1695
1696	1696
1697	1697
1698	1698	HB2810 - 46 - LRB104 08813 BDA 18868 b
1699	1699
1700	1700
1701	1701	HB2810- 47 -LRB104 08813 BDA 18868 b HB2810 - 47 - LRB104 08813 BDA 18868 b
1702	1702	HB2810 - 47 - LRB104 08813 BDA 18868 b
1703	1703	1 described in this subparagraph (iv) shall also include
1704	1704	2 the proposed quantities or blocks, pricing, and
1705	1705	3 contract terms applicable to the procurement as
1706	1706	4 indicated herein. In each such update and procurement,
1707	1707	5 the Agency shall set the renewable energy credit price
1708	1708	6 and establish payment terms for the renewable energy
1709	1709	7 credits procured pursuant to this subparagraph (iv)
1710	1710	8 that make it feasible and affordable for public
1711	1711	9 schools to install photovoltaic distributed renewable
1712	1712	10 energy devices on their premises, including, but not
1713	1713	11 limited to, those public schools subject to the
1714	1714	12 prioritization provisions of this subparagraph. For
1715	1715	13 the purposes of this item (iv):
1716	1716	14 "Environmental Justice Community" shall have the
1717	1717	15 same meaning set forth in the Agency's long-term
1718	1718	16 renewable resources procurement plan;
1719	1719	17 "Organization Unit", "Tier 1" and "Tier 2" shall
1720	1720	18 have the meanings set for in Section 18-8.15 of the
1721	1721	19 School Code;
1722	1722	20 "Public schools" shall have the meaning set forth
1723	1723	21 in Section 1-3 of the School Code and includes public
1724	1724	22 institutions of higher education, as defined in the
1725	1725	23 Board of Higher Education Act.
1726	1726	24 (v) At least 5% from community-driven community
1727	1727	25 solar projects intended to provide more direct and
1728	1728	26 tangible connection and benefits to the communities
1729	1729
1730	1730
1731	1731
1732	1732
1733	1733
1734	1734	HB2810 - 47 - LRB104 08813 BDA 18868 b
1735	1735
1736	1736
1737	1737	HB2810- 48 -LRB104 08813 BDA 18868 b HB2810 - 48 - LRB104 08813 BDA 18868 b
1738	1738	HB2810 - 48 - LRB104 08813 BDA 18868 b
1739	1739	1 which they serve or in which they operate and,
1740	1740	2 additionally, to increase the variety of community
1741	1741	3 solar locations, models, and options in Illinois. As
1742	1742	4 part of its long-term renewable resources procurement
1743	1743	5 plan, the Agency shall develop selection criteria for
1744	1744	6 projects participating in this category. Nothing in
1745	1745	7 this Section shall preclude the Agency from creating a
1746	1746	8 selection process that maximizes community ownership
1747	1747	9 and community benefits in selecting projects to
1748	1748	10 receive renewable energy credits. Selection criteria
1749	1749	11 shall include:
1750	1750	12 (1) community ownership or community
1751	1751	13 wealth-building;
1752	1752	14 (2) additional direct and indirect community
1753	1753	15 benefit, beyond project participation as a
1754	1754	16 subscriber, including, but not limited to,
1755	1755	17 economic, environmental, social, cultural, and
1756	1756	18 physical benefits;
1757	1757	19 (3) meaningful involvement in project
1758	1758	20 organization and development by community members
1759	1759	21 or nonprofit organizations or public entities
1760	1760	22 located in or serving the community;
1761	1761	23 (4) engagement in project operations and
1762	1762	24 management by nonprofit organizations, public
1763	1763	25 entities, or community members; and
1764	1764	26 (5) whether a project is developed in response
1765	1765
1766	1766
1767	1767
1768	1768
1769	1769
1770	1770	HB2810 - 48 - LRB104 08813 BDA 18868 b
1771	1771
1772	1772
1773	1773	HB2810- 49 -LRB104 08813 BDA 18868 b HB2810 - 49 - LRB104 08813 BDA 18868 b
1774	1774	HB2810 - 49 - LRB104 08813 BDA 18868 b
1775	1775	1 to a site-specific RFP developed by community
1776	1776	2 members or a nonprofit organization or public
1777	1777	3 entity located in or serving the community.
1778	1778	4 Selection criteria may also prioritize projects
1779	1779	5 that:
1780	1780	6 (1) are developed in collaboration with or to
1781	1781	7 provide complementary opportunities for the Clean
1782	1782	8 Jobs Workforce Network Program, the Illinois
1783	1783	9 Climate Works Preapprenticeship Program, the
1784	1784	10 Returning Residents Clean Jobs Training Program,
1785	1785	11 the Clean Energy Contractor Incubator Program, or
1786	1786	12 the Clean Energy Primes Contractor Accelerator
1787	1787	13 Program;
1788	1788	14 (2) increase the diversity of locations of
1789	1789	15 community solar projects in Illinois, including by
1790	1790	16 locating in urban areas and population centers;
1791	1791	17 (3) are located in Equity Investment Eligible
1792	1792	18 Communities;
1793	1793	19 (4) are not greenfield projects;
1794	1794	20 (5) serve only local subscribers;
1795	1795	21 (6) have a nameplate capacity that does not
1796	1796	22 exceed 500 kW;
1797	1797	23 (7) are developed by an equity eligible
1798	1798	24 contractor; or
1799	1799	25 (8) otherwise meaningfully advance the goals
1800	1800	26 of providing more direct and tangible connection
1801	1801
1802	1802
1803	1803
1804	1804
1805	1805
1806	1806	HB2810 - 49 - LRB104 08813 BDA 18868 b
1807	1807
1808	1808
1809	1809	HB2810- 50 -LRB104 08813 BDA 18868 b HB2810 - 50 - LRB104 08813 BDA 18868 b
1810	1810	HB2810 - 50 - LRB104 08813 BDA 18868 b
1811	1811	1 and benefits to the communities which they serve
1812	1812	2 or in which they operate and increasing the
1813	1813	3 variety of community solar locations, models, and
1814	1814	4 options in Illinois.
1815	1815	5 For the purposes of this item (v):
1816	1816	6 "Community" means a social unit in which people
1817	1817	7 come together regularly to effect change; a social
1818	1818	8 unit in which participants are marked by a cooperative
1819	1819	9 spirit, a common purpose, or shared interests or
1820	1820	10 characteristics; or a space understood by its
1821	1821	11 residents to be delineated through geographic
1822	1822	12 boundaries or landmarks.
1823	1823	13 "Community benefit" means a range of services and
1824	1824	14 activities that provide affirmative, economic,
1825	1825	15 environmental, social, cultural, or physical value to
1826	1826	16 a community; or a mechanism that enables economic
1827	1827	17 development, high-quality employment, and education
1828	1828	18 opportunities for local workers and residents, or
1829	1829	19 formal monitoring and oversight structures such that
1830	1830	20 community members may ensure that those services and
1831	1831	21 activities respond to local knowledge and needs.
1832	1832	22 "Community ownership" means an arrangement in
1833	1833	23 which an electric generating facility is, or over time
1834	1834	24 will be, in significant part, owned collectively by
1835	1835	25 members of the community to which an electric
1836	1836	26 generating facility provides benefits; members of that
1837	1837
1838	1838
1839	1839
1840	1840
1841	1841
1842	1842	HB2810 - 50 - LRB104 08813 BDA 18868 b
1843	1843
1844	1844
1845	1845	HB2810- 51 -LRB104 08813 BDA 18868 b HB2810 - 51 - LRB104 08813 BDA 18868 b
1846	1846	HB2810 - 51 - LRB104 08813 BDA 18868 b
1847	1847	1 community participate in decisions regarding the
1848	1848	2 governance, operation, maintenance, and upgrades of
1849	1849	3 and to that facility; and members of that community
1850	1850	4 benefit from regular use of that facility.
1851	1851	5 Terms and guidance within these criteria that are
1852	1852	6 not defined in this item (v) shall be defined by the
1853	1853	7 Agency, with stakeholder input, during the development
1854	1854	8 of the Agency's long-term renewable resources
1855	1855	9 procurement plan. The Agency shall develop regular
1856	1856	10 opportunities for projects to submit applications for
1857	1857	11 projects under this category, and develop selection
1858	1858	12 criteria that gives preference to projects that better
1859	1859	13 meet individual criteria as well as projects that
1860	1860	14 address a higher number of criteria.
1861	1861	15 (vi) At least 10% from distributed renewable
1862	1862	16 energy generation devices, which includes distributed
1863	1863	17 renewable energy devices with a nameplate capacity
1864	1864	18 under 5,000 kilowatts or photovoltaic community
1865	1865	19 renewable generation projects, from applicants that
1866	1866	20 are equity eligible contractors. The Agency may create
1867	1867	21 subcategories within this category to account for the
1868	1868	22 differences between project size and type. The Agency
1869	1869	23 shall propose to increase the percentage in this item
1870	1870	24 (vi) over time to 40% based on factors, including, but
1871	1871	25 not limited to, the number of equity eligible
1872	1872	26 contractors and capacity used in this item (vi) in
1873	1873
1874	1874
1875	1875
1876	1876
1877	1877
1878	1878	HB2810 - 51 - LRB104 08813 BDA 18868 b
1879	1879
1880	1880
1881	1881	HB2810- 52 -LRB104 08813 BDA 18868 b HB2810 - 52 - LRB104 08813 BDA 18868 b
1882	1882	HB2810 - 52 - LRB104 08813 BDA 18868 b
1883	1883	1 previous delivery years.
1884	1884	2 The Agency shall propose a payment structure for
1885	1885	3 contracts executed pursuant to this paragraph under
1886	1886	4 which, upon a demonstration of qualification or need,
1887	1887	5 applicant firms are advanced capital disbursed after
1888	1888	6 contract execution but before the contracted project's
1889	1889	7 energization. The amount or percentage of capital
1890	1890	8 advanced prior to project energization shall be
1891	1891	9 sufficient to both cover any increase in development
1892	1892	10 costs resulting from prevailing wage requirements or
1893	1893	11 project-labor agreements, and designed to overcome
1894	1894	12 barriers in access to capital faced by equity eligible
1895	1895	13 contractors. The amount or percentage of advanced
1896	1896	14 capital may vary by subcategory within this category
1897	1897	15 and by an applicant's demonstration of need, with such
1898	1898	16 levels to be established through the Long-Term
1899	1899	17 Renewable Resources Procurement Plan authorized under
1900	1900	18 subparagraph (A) of paragraph (1) of subsection (c) of
1901	1901	19 this Section.
1902	1902	20 Contracts developed featuring capital advanced
1903	1903	21 prior to a project's energization shall feature
1904	1904	22 provisions to ensure both the successful development
1905	1905	23 of applicant projects and the delivery of the
1906	1906	24 renewable energy credits for the full term of the
1907	1907	25 contract, including ongoing collateral requirements
1908	1908	26 and other provisions deemed necessary by the Agency,
1909	1909
1910	1910
1911	1911
1912	1912
1913	1913
1914	1914	HB2810 - 52 - LRB104 08813 BDA 18868 b
1915	1915
1916	1916
1917	1917	HB2810- 53 -LRB104 08813 BDA 18868 b HB2810 - 53 - LRB104 08813 BDA 18868 b
1918	1918	HB2810 - 53 - LRB104 08813 BDA 18868 b
1919	1919	1 and may include energization timelines longer than for
1920	1920	2 comparable project types. The percentage or amount of
1921	1921	3 capital advanced prior to project energization shall
1922	1922	4 not operate to increase the overall contract value,
1923	1923	5 however contracts executed under this subparagraph may
1924	1924	6 feature renewable energy credit prices higher than
1925	1925	7 those offered to similar projects participating in
1926	1926	8 other categories. Capital advanced prior to
1927	1927	9 energization shall serve to reduce the ratable
1928	1928	10 payments made after energization under items (ii) and
1929	1929	11 (iii) of subparagraph (L) or payments made for each
1930	1930	12 renewable energy credit delivery under item (iv) of
1931	1931	13 subparagraph (L).
1932	1932	14 (vii) The remaining capacity shall be allocated by
1933	1933	15 the Agency in order to respond to market demand. The
1934	1934	16 Agency shall allocate any discretionary capacity prior
1935	1935	17 to the beginning of each delivery year.
1936	1936	18 To the extent there is uncontracted capacity from any
1937	1937	19 block in any of categories (i) through (vi) at the end of a
1938	1938	20 delivery year, the Agency shall redistribute that capacity
1939	1939	21 to one or more other categories giving priority to
1940	1940	22 categories with projects on a waitlist. The redistributed
1941	1941	23 capacity shall be added to the annual capacity in the
1942	1942	24 subsequent delivery year, and the price for renewable
1943	1943	25 energy credits shall be the price for the new delivery
1944	1944	26 year. Redistributed capacity shall not be considered
1945	1945
1946	1946
1947	1947
1948	1948
1949	1949
1950	1950	HB2810 - 53 - LRB104 08813 BDA 18868 b
1951	1951
1952	1952
1953	1953	HB2810- 54 -LRB104 08813 BDA 18868 b HB2810 - 54 - LRB104 08813 BDA 18868 b
1954	1954	HB2810 - 54 - LRB104 08813 BDA 18868 b
1955	1955	1 redistributed when determining whether the goals in this
1956	1956	2 subsection (K) have been met.
1957	1957	3 Notwithstanding anything to the contrary, as the
1958	1958	4 Agency increases the capacity in item (vi) to 40% over
1959	1959	5 time, the Agency may reduce the capacity of items (i)
1960	1960	6 through (v) proportionate to the capacity of the
1961	1961	7 categories of projects in item (vi), to achieve a balance
1962	1962	8 of project types.
1963	1963	9 The Adjustable Block program shall be designed to
1964	1964	10 ensure that renewable energy credits are procured from
1965	1965	11 projects in diverse locations and are not concentrated in
1966	1966	12 a few regional areas.
1967	1967	13 (L) Notwithstanding provisions for advancing capital
1968	1968	14 prior to project energization found in item (vi) of
1969	1969	15 subparagraph (K), the procurement of photovoltaic
1970	1970	16 renewable energy credits under items (i) through (vi) of
1971	1971	17 subparagraph (K) of this paragraph (1) shall otherwise be
1972	1972	18 subject to the following contract and payment terms:
1973	1973	19 (i) (Blank).
1974	1974	20 (ii) For those renewable energy credits that
1975	1975	21 qualify and are procured under item (i) of
1976	1976	22 subparagraph (K) of this paragraph (1), and any
1977	1977	23 similar category projects that are procured under item
1978	1978	24 (vi) of subparagraph (K) of this paragraph (1) that
1979	1979	25 qualify and are procured under item (vi), the contract
1980	1980	26 length shall be 15 years. The renewable energy credit
1981	1981
1982	1982
1983	1983
1984	1984
1985	1985
1986	1986	HB2810 - 54 - LRB104 08813 BDA 18868 b
1987	1987
1988	1988
1989	1989	HB2810- 55 -LRB104 08813 BDA 18868 b HB2810 - 55 - LRB104 08813 BDA 18868 b
1990	1990	HB2810 - 55 - LRB104 08813 BDA 18868 b
1991	1991	1 delivery contract value shall be paid in full, based
1992	1992	2 on the estimated generation during the first 15 years
1993	1993	3 of operation, by the contracting utilities at the time
1994	1994	4 that the facility producing the renewable energy
1995	1995	5 credits is interconnected at the distribution system
1996	1996	6 level of the utility and verified as energized and
1997	1997	7 compliant by the Program Administrator. The electric
1998	1998	8 utility shall receive and retire all renewable energy
1999	1999	9 credits generated by the project for the first 15
2000	2000	10 years of operation. Renewable energy credits generated
2001	2001	11 by the project thereafter shall not be transferred
2002	2002	12 under the renewable energy credit delivery contract
2003	2003	13 with the counterparty electric utility.
2004	2004	14 (iii) For those renewable energy credits that
2005	2005	15 qualify and are procured under item (ii) and (v) of
2006	2006	16 subparagraph (K) of this paragraph (1) and any like
2007	2007	17 projects similar category that qualify and are
2008	2008	18 procured under item (vi), the contract length shall be
2009	2009	19 15 years. 15% of the renewable energy credit delivery
2010	2010	20 contract value, based on the estimated generation
2011	2011	21 during the first 15 years of operation, shall be paid
2012	2012	22 by the contracting utilities at the time that the
2013	2013	23 facility producing the renewable energy credits is
2014	2014	24 interconnected at the distribution system level of the
2015	2015	25 utility and verified as energized and compliant by the
2016	2016	26 Program Administrator. The remaining portion shall be
2017	2017
2018	2018
2019	2019
2020	2020
2021	2021
2022	2022	HB2810 - 55 - LRB104 08813 BDA 18868 b
2023	2023
2024	2024
2025	2025	HB2810- 56 -LRB104 08813 BDA 18868 b HB2810 - 56 - LRB104 08813 BDA 18868 b
2026	2026	HB2810 - 56 - LRB104 08813 BDA 18868 b
2027	2027	1 paid ratably over the subsequent 6-year period. The
2028	2028	2 electric utility shall receive and retire all
2029	2029	3 renewable energy credits generated by the project for
2030	2030	4 the first 15 years of operation. Renewable energy
2031	2031	5 credits generated by the project thereafter shall not
2032	2032	6 be transferred under the renewable energy credit
2033	2033	7 delivery contract with the counterparty electric
2034	2034	8 utility.
2035	2035	9 (iv) For those renewable energy credits that
2036	2036	10 qualify and are procured under items (iii) and (iv) of
2037	2037	11 subparagraph (K) of this paragraph (1), and any like
2038	2038	12 projects that qualify and are procured under item
2039	2039	13 (vi), the renewable energy credit delivery contract
2040	2040	14 length shall be 20 years and shall be paid over the
2041	2041	15 delivery term, not to exceed during each delivery year
2042	2042	16 the contract price multiplied by the estimated annual
2043	2043	17 renewable energy credit generation amount. If
2044	2044	18 generation of renewable energy credits during a
2045	2045	19 delivery year exceeds the estimated annual generation
2046	2046	20 amount, the excess renewable energy credits shall be
2047	2047	21 carried forward to future delivery years and shall not
2048	2048	22 expire during the delivery term. If generation of
2049	2049	23 renewable energy credits during a delivery year,
2050	2050	24 including carried forward excess renewable energy
2051	2051	25 credits, if any, is less than the estimated annual
2052	2052	26 generation amount, payments during such delivery year
2053	2053
2054	2054
2055	2055
2056	2056
2057	2057
2058	2058	HB2810 - 56 - LRB104 08813 BDA 18868 b
2059	2059
2060	2060
2061	2061	HB2810- 57 -LRB104 08813 BDA 18868 b HB2810 - 57 - LRB104 08813 BDA 18868 b
2062	2062	HB2810 - 57 - LRB104 08813 BDA 18868 b
2063	2063	1 will not exceed the quantity generated plus the
2064	2064	2 quantity carried forward multiplied by the contract
2065	2065	3 price. The electric utility shall receive all
2066	2066	4 renewable energy credits generated by the project
2067	2067	5 during the first 20 years of operation and retire all
2068	2068	6 renewable energy credits paid for under this item (iv)
2069	2069	7 and return at the end of the delivery term all
2070	2070	8 renewable energy credits that were not paid for.
2071	2071	9 Renewable energy credits generated by the project
2072	2072	10 thereafter shall not be transferred under the
2073	2073	11 renewable energy credit delivery contract with the
2074	2074	12 counterparty electric utility. Notwithstanding the
2075	2075	13 preceding, for those projects participating under item
2076	2076	14 (iii) of subparagraph (K), the contract price for a
2077	2077	15 delivery year shall be based on subscription levels as
2078	2078	16 measured on the higher of the first business day of the
2079	2079	17 delivery year or the first business day 6 months after
2080	2080	18 the first business day of the delivery year.
2081	2081	19 Subscription of 90% of nameplate capacity or greater
2082	2082	20 shall be deemed to be fully subscribed for the
2083	2083	21 purposes of this item (iv). For projects receiving a
2084	2084	22 20-year delivery contract, REC prices shall be
2085	2085	23 adjusted downward for consistency with the incentive
2086	2086	24 levels previously determined to be necessary to
2087	2087	25 support projects under 15-year delivery contracts,
2088	2088	26 taking into consideration any additional new
2089	2089
2090	2090
2091	2091
2092	2092
2093	2093
2094	2094	HB2810 - 57 - LRB104 08813 BDA 18868 b
2095	2095
2096	2096
2097	2097	HB2810- 58 -LRB104 08813 BDA 18868 b HB2810 - 58 - LRB104 08813 BDA 18868 b
2098	2098	HB2810 - 58 - LRB104 08813 BDA 18868 b
2099	2099	1 requirements placed on the projects, including, but
2100	2100	2 not limited to, labor standards.
2101	2101	3 (v) Each contract shall include provisions to
2102	2102	4 ensure the delivery of the estimated quantity of
2103	2103	5 renewable energy credits and ongoing collateral
2104	2104	6 requirements and other provisions deemed appropriate
2105	2105	7 by the Agency.
2106	2106	8 (vi) The utility shall be the counterparty to the
2107	2107	9 contracts executed under this subparagraph (L) that
2108	2108	10 are approved by the Commission under the process
2109	2109	11 described in Section 16-111.5 of the Public Utilities
2110	2110	12 Act. No contract shall be executed for an amount that
2111	2111	13 is less than one renewable energy credit per year.
2112	2112	14 (vii) If, at any time, approved applications for
2113	2113	15 the Adjustable Block program exceed funds collected by
2114	2114	16 the electric utility or would cause the Agency to
2115	2115	17 exceed the limitation described in subparagraph (E) of
2116	2116	18 this paragraph (1) on the amount of renewable energy
2117	2117	19 resources that may be procured, then the Agency may
2118	2118	20 consider future uncommitted funds to be reserved for
2119	2119	21 these contracts on a first-come, first-served basis.
2120	2120	22 (viii) Nothing in this Section shall require the
2121	2121	23 utility to advance any payment or pay any amounts that
2122	2122	24 exceed the actual amount of revenues anticipated to be
2123	2123	25 collected by the utility under paragraph (6) of this
2124	2124	26 subsection (c) and subsection (k) of Section 16-108 of
2125	2125
2126	2126
2127	2127
2128	2128
2129	2129
2130	2130	HB2810 - 58 - LRB104 08813 BDA 18868 b
2131	2131
2132	2132
2133	2133	HB2810- 59 -LRB104 08813 BDA 18868 b HB2810 - 59 - LRB104 08813 BDA 18868 b
2134	2134	HB2810 - 59 - LRB104 08813 BDA 18868 b
2135	2135	1 the Public Utilities Act inclusive of eligible funds
2136	2136	2 collected in prior years and alternative compliance
2137	2137	3 payments for use by the utility, and contracts
2138	2138	4 executed under this Section shall expressly
2139	2139	5 incorporate this limitation.
2140	2140	6 (ix) Notwithstanding other requirements of this
2141	2141	7 subparagraph (L), no modification shall be required to
2142	2142	8 Adjustable Block program contracts if they were
2143	2143	9 already executed prior to the establishment, approval,
2144	2144	10 and implementation of new contract forms as a result
2145	2145	11 of this amendatory Act of the 102nd General Assembly.
2146	2146	12 (x) Contracts may be assignable, but only to
2147	2147	13 entities first deemed by the Agency to have met
2148	2148	14 program terms and requirements applicable to direct
2149	2149	15 program participation. In developing contracts for the
2150	2150	16 delivery of renewable energy credits, the Agency shall
2151	2151	17 be permitted to establish fees applicable to each
2152	2152	18 contract assignment.
2153	2153	19 (M) The Agency shall be authorized to retain one or
2154	2154	20 more experts or expert consulting firms to develop,
2155	2155	21 administer, implement, operate, and evaluate the
2156	2156	22 Adjustable Block program described in subparagraph (K) of
2157	2157	23 this paragraph (1), and the Agency shall retain the
2158	2158	24 consultant or consultants in the same manner, to the
2159	2159	25 extent practicable, as the Agency retains others to
2160	2160	26 administer provisions of this Act, including, but not
2161	2161
2162	2162
2163	2163
2164	2164
2165	2165
2166	2166	HB2810 - 59 - LRB104 08813 BDA 18868 b
2167	2167
2168	2168
2169	2169	HB2810- 60 -LRB104 08813 BDA 18868 b HB2810 - 60 - LRB104 08813 BDA 18868 b
2170	2170	HB2810 - 60 - LRB104 08813 BDA 18868 b
2171	2171	1 limited to, the procurement administrator. The selection
2172	2172	2 of experts and expert consulting firms and the procurement
2173	2173	3 process described in this subparagraph (M) are exempt from
2174	2174	4 the requirements of Section 20-10 of the Illinois
2175	2175	5 Procurement Code, under Section 20-10 of that Code. The
2176	2176	6 Agency shall strive to minimize administrative expenses in
2177	2177	7 the implementation of the Adjustable Block program.
2178	2178	8 The Program Administrator may charge application fees
2179	2179	9 to participating firms to cover the cost of program
2180	2180	10 administration. Any application fee amounts shall
2181	2181	11 initially be determined through the long-term renewable
2182	2182	12 resources procurement plan, and modifications to any
2183	2183	13 application fee that deviate more than 25% from the
2184	2184	14 Commission's approved value must be approved by the
2185	2185	15 Commission as a long-term plan revision under Section
2186	2186	16 16-111.5 of the Public Utilities Act. The Agency shall
2187	2187	17 consider stakeholder feedback when making adjustments to
2188	2188	18 application fees and shall notify stakeholders in advance
2189	2189	19 of any planned changes.
2190	2190	20 In addition to covering the costs of program
2191	2191	21 administration, the Agency, in conjunction with its
2192	2192	22 Program Administrator, may also use the proceeds of such
2193	2193	23 fees charged to participating firms to support public
2194	2194	24 education and ongoing regional and national coordination
2195	2195	25 with nonprofit organizations, public bodies, and others
2196	2196	26 engaged in the implementation of renewable energy
2197	2197
2198	2198
2199	2199
2200	2200
2201	2201
2202	2202	HB2810 - 60 - LRB104 08813 BDA 18868 b
2203	2203
2204	2204
2205	2205	HB2810- 61 -LRB104 08813 BDA 18868 b HB2810 - 61 - LRB104 08813 BDA 18868 b
2206	2206	HB2810 - 61 - LRB104 08813 BDA 18868 b
2207	2207	1 incentive programs or similar initiatives. This work may
2208	2208	2 include developing papers and reports, hosting regional
2209	2209	3 and national conferences, and other work deemed necessary
2210	2210	4 by the Agency to position the State of Illinois as a
2211	2211	5 national leader in renewable energy incentive program
2212	2212	6 development and administration.
2213	2213	7 The Agency and its consultant or consultants shall
2214	2214	8 monitor block activity, share program activity with
2215	2215	9 stakeholders and conduct quarterly meetings to discuss
2216	2216	10 program activity and market conditions. If necessary, the
2217	2217	11 Agency may make prospective administrative adjustments to
2218	2218	12 the Adjustable Block program design, such as making
2219	2219	13 adjustments to purchase prices as necessary to achieve the
2220	2220	14 goals of this subsection (c). Program modifications to any
2221	2221	15 block price that do not deviate from the Commission's
2222	2222	16 approved value by more than 10% shall take effect
2223	2223	17 immediately and are not subject to Commission review and
2224	2224	18 approval. Program modifications to any block price that
2225	2225	19 deviate more than 10% from the Commission's approved value
2226	2226	20 must be approved by the Commission as a long-term plan
2227	2227	21 amendment under Section 16-111.5 of the Public Utilities
2228	2228	22 Act. The Agency shall consider stakeholder feedback when
2229	2229	23 making adjustments to the Adjustable Block design and
2230	2230	24 shall notify stakeholders in advance of any planned
2231	2231	25 changes.
2232	2232	26 The Agency and its program administrators for both the
2233	2233
2234	2234
2235	2235
2236	2236
2237	2237
2238	2238	HB2810 - 61 - LRB104 08813 BDA 18868 b
2239	2239
2240	2240
2241	2241	HB2810- 62 -LRB104 08813 BDA 18868 b HB2810 - 62 - LRB104 08813 BDA 18868 b
2242	2242	HB2810 - 62 - LRB104 08813 BDA 18868 b
2243	2243	1 Adjustable Block program and the Illinois Solar for All
2244	2244	2 Program, consistent with the requirements of this
2245	2245	3 subsection (c) and subsection (b) of Section 1-56 of this
2246	2246	4 Act, shall propose the Adjustable Block program terms,
2247	2247	5 conditions, and requirements, including the prices to be
2248	2248	6 paid for renewable energy credits, where applicable, and
2249	2249	7 requirements applicable to participating entities and
2250	2250	8 project applications, through the development, review, and
2251	2251	9 approval of the Agency's long-term renewable resources
2252	2252	10 procurement plan described in this subsection (c) and
2253	2253	11 paragraph (5) of subsection (b) of Section 16-111.5 of the
2254	2254	12 Public Utilities Act. Terms, conditions, and requirements
2255	2255	13 for program participation shall include the following:
2256	2256	14 (i) The Agency shall establish a registration
2257	2257	15 process for entities seeking to qualify for
2258	2258	16 program-administered incentive funding and establish
2259	2259	17 baseline qualifications for vendor approval. The
2260	2260	18 Agency must maintain a list of approved entities on
2261	2261	19 each program's website, and may revoke a vendor's
2262	2262	20 ability to receive program-administered incentive
2263	2263	21 funding status upon a determination that the vendor
2264	2264	22 failed to comply with contract terms, the law, or
2265	2265	23 other program requirements.
2266	2266	24 (ii) The Agency shall establish program
2267	2267	25 requirements and minimum contract terms to ensure
2268	2268	26 projects are properly installed and produce their
2269	2269
2270	2270
2271	2271
2272	2272
2273	2273
2274	2274	HB2810 - 62 - LRB104 08813 BDA 18868 b
2275	2275
2276	2276
2277	2277	HB2810- 63 -LRB104 08813 BDA 18868 b HB2810 - 63 - LRB104 08813 BDA 18868 b
2278	2278	HB2810 - 63 - LRB104 08813 BDA 18868 b
2279	2279	1 expected amounts of energy. Program requirements may
2280	2280	2 include on-site inspections and photo documentation of
2281	2281	3 projects under construction. The Agency may require
2282	2282	4 repairs, alterations, or additions to remedy any
2283	2283	5 material deficiencies discovered. Vendors who have a
2284	2284	6 disproportionately high number of deficient systems
2285	2285	7 may lose their eligibility to continue to receive
2286	2286	8 State-administered incentive funding through Agency
2287	2287	9 programs and procurements.
2288	2288	10 (iii) To discourage deceptive marketing or other
2289	2289	11 bad faith business practices, the Agency may require
2290	2290	12 direct program participants, including agents
2291	2291	13 operating on their behalf, to provide standardized
2292	2292	14 disclosures to a customer prior to that customer's
2293	2293	15 execution of a contract for the development of a
2294	2294	16 distributed generation system or a subscription to a
2295	2295	17 community solar project.
2296	2296	18 (iv) The Agency shall establish one or multiple
2297	2297	19 Consumer Complaints Centers to accept complaints
2298	2298	20 regarding businesses that participate in, or otherwise
2299	2299	21 benefit from, State-administered incentive funding
2300	2300	22 through Agency-administered programs. The Agency shall
2301	2301	23 maintain a public database of complaints with any
2302	2302	24 confidential or particularly sensitive information
2303	2303	25 redacted from public entries.
2304	2304	26 (v) Through a filing in the proceeding for the
2305	2305
2306	2306
2307	2307
2308	2308
2309	2309
2310	2310	HB2810 - 63 - LRB104 08813 BDA 18868 b
2311	2311
2312	2312
2313	2313	HB2810- 64 -LRB104 08813 BDA 18868 b HB2810 - 64 - LRB104 08813 BDA 18868 b
2314	2314	HB2810 - 64 - LRB104 08813 BDA 18868 b
2315	2315	1 approval of its long-term renewable energy resources
2316	2316	2 procurement plan, the Agency shall provide an annual
2317	2317	3 written report to the Illinois Commerce Commission
2318	2318	4 documenting the frequency and nature of complaints and
2319	2319	5 any enforcement actions taken in response to those
2320	2320	6 complaints.
2321	2321	7 (vi) The Agency shall schedule regular meetings
2322	2322	8 with representatives of the Office of the Attorney
2323	2323	9 General, the Illinois Commerce Commission, consumer
2324	2324	10 protection groups, and other interested stakeholders
2325	2325	11 to share relevant information about consumer
2326	2326	12 protection, project compliance, and complaints
2327	2327	13 received.
2328	2328	14 (vii) To the extent that complaints received
2329	2329	15 implicate the jurisdiction of the Office of the
2330	2330	16 Attorney General, the Illinois Commerce Commission, or
2331	2331	17 local, State, or federal law enforcement, the Agency
2332	2332	18 shall also refer complaints to those entities as
2333	2333	19 appropriate.
2334	2334	20 (N) The Agency shall establish the terms, conditions,
2335	2335	21 and program requirements for photovoltaic community
2336	2336	22 renewable generation projects with a goal to expand access
2337	2337	23 to a broader group of energy consumers, to ensure robust
2338	2338	24 participation opportunities for residential and small
2339	2339	25 commercial customers and those who cannot install
2340	2340	26 renewable energy on their own properties. Subject to
2341	2341
2342	2342
2343	2343
2344	2344
2345	2345
2346	2346	HB2810 - 64 - LRB104 08813 BDA 18868 b
2347	2347
2348	2348
2349	2349	HB2810- 65 -LRB104 08813 BDA 18868 b HB2810 - 65 - LRB104 08813 BDA 18868 b
2350	2350	HB2810 - 65 - LRB104 08813 BDA 18868 b
2351	2351	1 reasonable limitations, any plan approved by the
2352	2352	2 Commission shall allow subscriptions to community
2353	2353	3 renewable generation projects to be portable and
2354	2354	4 transferable. For purposes of this subparagraph (N),
2355	2355	5 "portable" means that subscriptions may be retained by the
2356	2356	6 subscriber even if the subscriber relocates or changes its
2357	2357	7 address within the same utility service territory; and
2358	2358	8 "transferable" means that a subscriber may assign or sell
2359	2359	9 subscriptions to another person within the same utility
2360	2360	10 service territory.
2361	2361	11 Through the development of its long-term renewable
2362	2362	12 resources procurement plan, the Agency may consider
2363	2363	13 whether community renewable generation projects utilizing
2364	2364	14 technologies other than photovoltaics should be supported
2365	2365	15 through State-administered incentive funding, and may
2366	2366	16 issue requests for information to gauge market demand.
2367	2367	17 Electric utilities shall provide a monetary credit to
2368	2368	18 a subscriber's subsequent bill for service for the
2369	2369	19 proportional output of a community renewable generation
2370	2370	20 project attributable to that subscriber as specified in
2371	2371	21 Section 16-107.5 of the Public Utilities Act.
2372	2372	22 The Agency shall purchase renewable energy credits
2373	2373	23 from subscribed shares of photovoltaic community renewable
2374	2374	24 generation projects through the Adjustable Block program
2375	2375	25 described in subparagraph (K) of this paragraph (1) or
2376	2376	26 through the Illinois Solar for All Program described in
2377	2377
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382	HB2810 - 65 - LRB104 08813 BDA 18868 b
2383	2383
2384	2384
2385	2385	HB2810- 66 -LRB104 08813 BDA 18868 b HB2810 - 66 - LRB104 08813 BDA 18868 b
2386	2386	HB2810 - 66 - LRB104 08813 BDA 18868 b
2387	2387	1 Section 1-56 of this Act. The electric utility shall
2388	2388	2 purchase any unsubscribed energy from community renewable
2389	2389	3 generation projects that are Qualifying Facilities ("QF")
2390	2390	4 under the electric utility's tariff for purchasing the
2391	2391	5 output from QFs under Public Utilities Regulatory Policies
2392	2392	6 Act of 1978.
2393	2393	7 The owners of and any subscribers to a community
2394	2394	8 renewable generation project shall not be considered
2395	2395	9 public utilities or alternative retail electricity
2396	2396	10 suppliers under the Public Utilities Act solely as a
2397	2397	11 result of their interest in or subscription to a community
2398	2398	12 renewable generation project and shall not be required to
2399	2399	13 become an alternative retail electric supplier by
2400	2400	14 participating in a community renewable generation project
2401	2401	15 with a public utility.
2402	2402	16 (O) For the delivery year beginning June 1, 2018, the
2403	2403	17 long-term renewable resources procurement plan required by
2404	2404	18 this subsection (c) shall provide for the Agency to
2405	2405	19 procure contracts to continue offering the Illinois Solar
2406	2406	20 for All Program described in subsection (b) of Section
2407	2407	21 1-56 of this Act, and the contracts approved by the
2408	2408	22 Commission shall be executed by the utilities that are
2409	2409	23 subject to this subsection (c). The long-term renewable
2410	2410	24 resources procurement plan shall allocate up to
2411	2411	25 $50,000,000 per delivery year to fund the programs, and
2412	2412	26 the plan shall determine the amount of funding to be
2413	2413
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418	HB2810 - 66 - LRB104 08813 BDA 18868 b
2419	2419
2420	2420
2421	2421	HB2810- 67 -LRB104 08813 BDA 18868 b HB2810 - 67 - LRB104 08813 BDA 18868 b
2422	2422	HB2810 - 67 - LRB104 08813 BDA 18868 b
2423	2423	1 apportioned to the programs identified in subsection (b)
2424	2424	2 of Section 1-56 of this Act; provided that for the
2425	2425	3 delivery years beginning June 1, 2021, June 1, 2022, and
2426	2426	4 June 1, 2023, the long-term renewable resources
2427	2427	5 procurement plan may average the annual budgets over a
2428	2428	6 3-year period to account for program ramp-up. For the
2429	2429	7 delivery years beginning June 1, 2021, June 1, 2024, June
2430	2430	8 1, 2027, and June 1, 2030 and additional $10,000,000 shall
2431	2431	9 be provided to the Department of Commerce and Economic
2432	2432	10 Opportunity to implement the workforce development
2433	2433	11 programs and reporting as outlined in Section 16-108.12 of
2434	2434	12 the Public Utilities Act. In making the determinations
2435	2435	13 required under this subparagraph (O), the Commission shall
2436	2436	14 consider the experience and performance under the programs
2437	2437	15 and any evaluation reports. The Commission shall also
2438	2438	16 provide for an independent evaluation of those programs on
2439	2439	17 a periodic basis that are funded under this subparagraph
2440	2440	18 (O).
2441	2441	19 (P) All programs and procurements under this
2442	2442	20 subsection (c) shall be designed to encourage
2443	2443	21 participating projects to use a diverse and equitable
2444	2444	22 workforce and a diverse set of contractors, including
2445	2445	23 minority-owned businesses, disadvantaged businesses,
2446	2446	24 trade unions, graduates of any workforce training programs
2447	2447	25 administered under this Act, and small businesses.
2448	2448	26 The Agency shall develop a method to optimize
2449	2449
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454	HB2810 - 67 - LRB104 08813 BDA 18868 b
2455	2455
2456	2456
2457	2457	HB2810- 68 -LRB104 08813 BDA 18868 b HB2810 - 68 - LRB104 08813 BDA 18868 b
2458	2458	HB2810 - 68 - LRB104 08813 BDA 18868 b
2459	2459	1 procurement of renewable energy credits from proposed
2460	2460	2 utility-scale projects that are located in communities
2461	2461	3 eligible to receive Energy Transition Community Grants
2462	2462	4 pursuant to Section 10-20 of the Energy Community
2463	2463	5 Reinvestment Act. If this requirement conflicts with other
2464	2464	6 provisions of law or the Agency determines that full
2465	2465	7 compliance with the requirements of this subparagraph (P)
2466	2466	8 would be unreasonably costly or administratively
2467	2467	9 impractical, the Agency is to propose alternative
2468	2468	10 approaches to achieve development of renewable energy
2469	2469	11 resources in communities eligible to receive Energy
2470	2470	12 Transition Community Grants pursuant to Section 10-20 of
2471	2471	13 the Energy Community Reinvestment Act or seek an exemption
2472	2472	14 from this requirement from the Commission.
2473	2473	15 (Q) Each facility listed in subitems (i) through (ix)
2474	2474	16 of item (1) of this subparagraph (Q) for which a renewable
2475	2475	17 energy credit delivery contract is signed after the
2476	2476	18 effective date of this amendatory Act of the 102nd General
2477	2477	19 Assembly is subject to the following requirements through
2478	2478	20 the Agency's long-term renewable resources procurement
2479	2479	21 plan:
2480	2480	22 (1) Each facility shall be subject to the
2481	2481	23 prevailing wage requirements included in the
2482	2482	24 Prevailing Wage Act. The Agency shall require
2483	2483	25 verification that all construction performed on the
2484	2484	26 facility by the renewable energy credit delivery
2485	2485
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490	HB2810 - 68 - LRB104 08813 BDA 18868 b
2491	2491
2492	2492
2493	2493	HB2810- 69 -LRB104 08813 BDA 18868 b HB2810 - 69 - LRB104 08813 BDA 18868 b
2494	2494	HB2810 - 69 - LRB104 08813 BDA 18868 b
2495	2495	1 contract holder, its contractors, or its
2496	2496	2 subcontractors relating to construction of the
2497	2497	3 facility is performed by construction employees
2498	2498	4 receiving an amount for that work equal to or greater
2499	2499	5 than the general prevailing rate, as that term is
2500	2500	6 defined in Section 3 of the Prevailing Wage Act. For
2501	2501	7 purposes of this item (1), "house of worship" means
2502	2502	8 property that is both (1) used exclusively by a
2503	2503	9 religious society or body of persons as a place for
2504	2504	10 religious exercise or religious worship and (2)
2505	2505	11 recognized as exempt from taxation pursuant to Section
2506	2506	12 15-40 of the Property Tax Code. This item (1) shall
2507	2507	13 apply to any the following:
2508	2508	14 (i) all new utility-scale wind projects;
2509	2509	15 (ii) all new utility-scale photovoltaic
2510	2510	16 projects;
2511	2511	17 (iii) all new brownfield photovoltaic
2512	2512	18 projects;
2513	2513	19 (iv) all new photovoltaic community renewable
2514	2514	20 energy facilities that qualify for item (iii) of
2515	2515	21 subparagraph (K) of this paragraph (1);
2516	2516	22 (v) all new community driven community
2517	2517	23 photovoltaic projects that qualify for item (v) of
2518	2518	24 subparagraph (K) of this paragraph (1);
2519	2519	25 (vi) all new photovoltaic projects on public
2520	2520	26 school land that qualify for item (iv) of
2521	2521
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526	HB2810 - 69 - LRB104 08813 BDA 18868 b
2527	2527
2528	2528
2529	2529	HB2810- 70 -LRB104 08813 BDA 18868 b HB2810 - 70 - LRB104 08813 BDA 18868 b
2530	2530	HB2810 - 70 - LRB104 08813 BDA 18868 b
2531	2531	1 subparagraph (K) of this paragraph (1);
2532	2532	2 (vii) all new photovoltaic distributed
2533	2533	3 renewable energy generation devices that (1)
2534	2534	4 qualify for item (i) of subparagraph (K) of this
2535	2535	5 paragraph (1); (2) are not projects that serve
2536	2536	6 single-family or multi-family residential
2537	2537	7 buildings; and (3) are not houses of worship where
2538	2538	8 the aggregate capacity including collocated
2539	2539	9 projects would not exceed 100 kilowatts;
2540	2540	10 (viii) all new photovoltaic distributed
2541	2541	11 renewable energy generation devices that (1)
2542	2542	12 qualify for item (ii) of subparagraph (K) of this
2543	2543	13 paragraph (1); (2) are not projects that serve
2544	2544	14 single-family or multi-family residential
2545	2545	15 buildings; and (3) are not houses of worship where
2546	2546	16 the aggregate capacity including collocated
2547	2547	17 projects would not exceed 100 kilowatts;
2548	2548	18 (ix) all new, modernized, or retooled
2549	2549	19 hydropower facilities.
2550	2550	20 (2) Renewable energy credits procured from new
2551	2551	21 utility-scale wind projects, new utility-scale solar
2552	2552	22 projects, and new brownfield solar projects pursuant
2553	2553	23 to Agency procurement events occurring after the
2554	2554	24 effective date of this amendatory Act of the 102nd
2555	2555	25 General Assembly must be from facilities built by
2556	2556	26 general contractors that must enter into a project
2557	2557
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562	HB2810 - 70 - LRB104 08813 BDA 18868 b
2563	2563
2564	2564
2565	2565	HB2810- 71 -LRB104 08813 BDA 18868 b HB2810 - 71 - LRB104 08813 BDA 18868 b
2566	2566	HB2810 - 71 - LRB104 08813 BDA 18868 b
2567	2567	1 labor agreement, as defined by this Act, prior to
2568	2568	2 construction. The project labor agreement shall be
2569	2569	3 filed with the Director in accordance with procedures
2570	2570	4 established by the Agency through its long-term
2571	2571	5 renewable resources procurement plan. Any information
2572	2572	6 submitted to the Agency in this item (2) shall be
2573	2573	7 considered commercially sensitive information. At a
2574	2574	8 minimum, the project labor agreement must provide the
2575	2575	9 names, addresses, and occupations of the owner of the
2576	2576	10 plant and the individuals representing the labor
2577	2577	11 organization employees participating in the project
2578	2578	12 labor agreement consistent with the Project Labor
2579	2579	13 Agreements Act. The agreement must also specify the
2580	2580	14 terms and conditions as defined by this Act.
2581	2581	15 (3) It is the intent of this Section to ensure that
2582	2582	16 economic development occurs across Illinois
2583	2583	17 communities, that emerging businesses may grow, and
2584	2584	18 that there is improved access to the clean energy
2585	2585	19 economy by persons who have greater economic burdens
2586	2586	20 to success. The Agency shall take into consideration
2587	2587	21 the unique cost of compliance of this subparagraph (Q)
2588	2588	22 that might be borne by equity eligible contractors,
2589	2589	23 shall include such costs when determining the price of
2590	2590	24 renewable energy credits in the Adjustable Block
2591	2591	25 program, and shall take such costs into consideration
2592	2592	26 in a nondiscriminatory manner when comparing bids for
2593	2593
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598	HB2810 - 71 - LRB104 08813 BDA 18868 b
2599	2599
2600	2600
2601	2601	HB2810- 72 -LRB104 08813 BDA 18868 b HB2810 - 72 - LRB104 08813 BDA 18868 b
2602	2602	HB2810 - 72 - LRB104 08813 BDA 18868 b
2603	2603	1 competitive procurements. The Agency shall consider
2604	2604	2 costs associated with compliance whether in the
2605	2605	3 development, financing, or construction of projects.
2606	2606	4 The Agency shall periodically review the assumptions
2607	2607	5 in these costs and may adjust prices, in compliance
2608	2608	6 with subparagraph (M) of this paragraph (1).
2609	2609	7 (R) In its long-term renewable resources procurement
2610	2610	8 plan, the Agency shall establish a self-direct renewable
2611	2611	9 portfolio standard compliance program for eligible
2612	2612	10 self-direct customers that purchase renewable energy
2613	2613	11 credits from utility-scale wind and solar projects through
2614	2614	12 long-term agreements for purchase of renewable energy
2615	2615	13 credits as described in this Section. Such long-term
2616	2616	14 agreements may include the purchase of energy or other
2617	2617	15 products on a physical or financial basis and may involve
2618	2618	16 an alternative retail electric supplier as defined in
2619	2619	17 Section 16-102 of the Public Utilities Act. This program
2620	2620	18 shall take effect in the delivery year commencing June 1,
2621	2621	19 2023.
2622	2622	20 (1) For the purposes of this subparagraph:
2623	2623	21 "Eligible self-direct customer" means any retail
2624	2624	22 customers of an electric utility that serves 3,000,000
2625	2625	23 or more retail customers in the State and whose total
2626	2626	24 highest 30-minute demand was more than 10,000
2627	2627	25 kilowatts, or any retail customers of an electric
2628	2628	26 utility that serves less than 3,000,000 retail
2629	2629
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634	HB2810 - 72 - LRB104 08813 BDA 18868 b
2635	2635
2636	2636
2637	2637	HB2810- 73 -LRB104 08813 BDA 18868 b HB2810 - 73 - LRB104 08813 BDA 18868 b
2638	2638	HB2810 - 73 - LRB104 08813 BDA 18868 b
2639	2639	1 customers but more than 500,000 retail customers in
2640	2640	2 the State and whose total highest 15-minute demand was
2641	2641	3 more than 10,000 kilowatts.
2642	2642	4 "Retail customer" has the meaning set forth in
2643	2643	5 Section 16-102 of the Public Utilities Act and
2644	2644	6 multiple retail customer accounts under the same
2645	2645	7 corporate parent may aggregate their account demands
2646	2646	8 to meet the 10,000 kilowatt threshold. The criteria
2647	2647	9 for determining whether this subparagraph is
2648	2648	10 applicable to a retail customer shall be based on the
2649	2649	11 12 consecutive billing periods prior to the start of
2650	2650	12 the year in which the application is filed.
2651	2651	13 (2) For renewable energy credits to count toward
2652	2652	14 the self-direct renewable portfolio standard
2653	2653	15 compliance program, they must:
2654	2654	16 (i) qualify as renewable energy credits as
2655	2655	17 defined in Section 1-10 of this Act;
2656	2656	18 (ii) be sourced from one or more renewable
2657	2657	19 energy generating facilities that comply with the
2658	2658	20 geographic requirements as set forth in
2659	2659	21 subparagraph (I) of paragraph (1) of subsection
2660	2660	22 (c) as interpreted through the Agency's long-term
2661	2661	23 renewable resources procurement plan, or, where
2662	2662	24 applicable, the geographic requirements that
2663	2663	25 governed utility-scale renewable energy credits at
2664	2664	26 the time the eligible self-direct customer entered
2665	2665
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670	HB2810 - 73 - LRB104 08813 BDA 18868 b
2671	2671
2672	2672
2673	2673	HB2810- 74 -LRB104 08813 BDA 18868 b HB2810 - 74 - LRB104 08813 BDA 18868 b
2674	2674	HB2810 - 74 - LRB104 08813 BDA 18868 b
2675	2675	1 into the applicable renewable energy credit
2676	2676	2 purchase agreement;
2677	2677	3 (iii) be procured through long-term contracts
2678	2678	4 with term lengths of at least 10 years either
2679	2679	5 directly with the renewable energy generating
2680	2680	6 facility or through a bundled power purchase
2681	2681	7 agreement, a virtual power purchase agreement, an
2682	2682	8 agreement between the renewable generating
2683	2683	9 facility, an alternative retail electric supplier,
2684	2684	10 and the customer, or such other structure as is
2685	2685	11 permissible under this subparagraph (R);
2686	2686	12 (iv) be equivalent in volume to at least 40%
2687	2687	13 of the eligible self-direct customer's usage,
2688	2688	14 determined annually by the eligible self-direct
2689	2689	15 customer's usage during the previous delivery
2690	2690	16 year, measured to the nearest megawatt-hour;
2691	2691	17 (v) be retired by or on behalf of the large
2692	2692	18 energy customer;
2693	2693	19 (vi) be sourced from new utility-scale wind
2694	2694	20 projects or new utility-scale solar projects; and
2695	2695	21 (vii) if the contracts for renewable energy
2696	2696	22 credits are entered into after the effective date
2697	2697	23 of this amendatory Act of the 102nd General
2698	2698	24 Assembly, the new utility-scale wind projects or
2699	2699	25 new utility-scale solar projects must comply with
2700	2700	26 the requirements established in subparagraphs (P)
2701	2701
2702	2702
2703	2703
2704	2704
2705	2705
2706	2706	HB2810 - 74 - LRB104 08813 BDA 18868 b
2707	2707
2708	2708
2709	2709	HB2810- 75 -LRB104 08813 BDA 18868 b HB2810 - 75 - LRB104 08813 BDA 18868 b
2710	2710	HB2810 - 75 - LRB104 08813 BDA 18868 b
2711	2711	1 and (Q) of paragraph (1) of this subsection (c)
2712	2712	2 and subsection (c-10).
2713	2713	3 (3) The self-direct renewable portfolio standard
2714	2714	4 compliance program shall be designed to allow eligible
2715	2715	5 self-direct customers to procure new renewable energy
2716	2716	6 credits from new utility-scale wind projects or new
2717	2717	7 utility-scale photovoltaic projects. The Agency shall
2718	2718	8 annually determine the amount of utility-scale
2719	2719	9 renewable energy credits it will include each year
2720	2720	10 from the self-direct renewable portfolio standard
2721	2721	11 compliance program, subject to receiving qualifying
2722	2722	12 applications. In making this determination, the Agency
2723	2723	13 shall evaluate publicly available analyses and studies
2724	2724	14 of the potential market size for utility-scale
2725	2725	15 renewable energy long-term purchase agreements by
2726	2726	16 commercial and industrial energy customers and make
2727	2727	17 that report publicly available. If demand for
2728	2728	18 participation in the self-direct renewable portfolio
2729	2729	19 standard compliance program exceeds availability, the
2730	2730	20 Agency shall ensure participation is evenly split
2731	2731	21 between commercial and industrial users to the extent
2732	2732	22 there is sufficient demand from both customer classes.
2733	2733	23 Each renewable energy credit procured pursuant to this
2734	2734	24 subparagraph (R) by a self-direct customer shall
2735	2735	25 reduce the total volume of renewable energy credits
2736	2736	26 the Agency is otherwise required to procure from new
2737	2737
2738	2738
2739	2739
2740	2740
2741	2741
2742	2742	HB2810 - 75 - LRB104 08813 BDA 18868 b
2743	2743
2744	2744
2745	2745	HB2810- 76 -LRB104 08813 BDA 18868 b HB2810 - 76 - LRB104 08813 BDA 18868 b
2746	2746	HB2810 - 76 - LRB104 08813 BDA 18868 b
2747	2747	1 utility-scale projects pursuant to subparagraph (C) of
2748	2748	2 paragraph (1) of this subsection (c) on behalf of
2749	2749	3 contracting utilities where the eligible self-direct
2750	2750	4 customer is located. The self-direct customer shall
2751	2751	5 file an annual compliance report with the Agency
2752	2752	6 pursuant to terms established by the Agency through
2753	2753	7 its long-term renewable resources procurement plan to
2754	2754	8 be eligible for participation in this program.
2755	2755	9 Customers must provide the Agency with their most
2756	2756	10 recent electricity billing statements or other
2757	2757	11 information deemed necessary by the Agency to
2758	2758	12 demonstrate they are an eligible self-direct customer.
2759	2759	13 (4) The Commission shall approve a reduction in
2760	2760	14 the volumetric charges collected pursuant to Section
2761	2761	15 16-108 of the Public Utilities Act for approved
2762	2762	16 eligible self-direct customers equivalent to the
2763	2763	17 anticipated cost of renewable energy credit deliveries
2764	2764	18 under contracts for new utility-scale wind and new
2765	2765	19 utility-scale solar entered for each delivery year
2766	2766	20 after the large energy customer begins retiring
2767	2767	21 eligible new utility scale renewable energy credits
2768	2768	22 for self-compliance. The self-direct credit amount
2769	2769	23 shall be determined annually and is equal to the
2770	2770	24 estimated portion of the cost authorized by
2771	2771	25 subparagraph (E) of paragraph (1) of this subsection
2772	2772	26 (c) that supported the annual procurement of
2773	2773
2774	2774
2775	2775
2776	2776
2777	2777
2778	2778	HB2810 - 76 - LRB104 08813 BDA 18868 b
2779	2779
2780	2780
2781	2781	HB2810- 77 -LRB104 08813 BDA 18868 b HB2810 - 77 - LRB104 08813 BDA 18868 b
2782	2782	HB2810 - 77 - LRB104 08813 BDA 18868 b
2783	2783	1 utility-scale renewable energy credits in the prior
2784	2784	2 delivery year using a methodology described in the
2785	2785	3 long-term renewable resources procurement plan,
2786	2786	4 expressed on a per kilowatthour basis, and does not
2787	2787	5 include (i) costs associated with any contracts
2788	2788	6 entered into before the delivery year in which the
2789	2789	7 customer files the initial compliance report to be
2790	2790	8 eligible for participation in the self-direct program,
2791	2791	9 and (ii) costs associated with procuring renewable
2792	2792	10 energy credits through existing and future contracts
2793	2793	11 through the Adjustable Block Program, subsection (c-5)
2794	2794	12 of this Section 1-75, and the Solar for All Program.
2795	2795	13 The Agency shall assist the Commission in determining
2796	2796	14 the current and future costs. The Agency must
2797	2797	15 determine the self-direct credit amount for new and
2798	2798	16 existing eligible self-direct customers and submit
2799	2799	17 this to the Commission in an annual compliance filing.
2800	2800	18 The Commission must approve the self-direct credit
2801	2801	19 amount by June 1, 2023 and June 1 of each delivery year
2802	2802	20 thereafter.
2803	2803	21 (5) Customers described in this subparagraph (R)
2804	2804	22 shall apply, on a form developed by the Agency, to the
2805	2805	23 Agency to be designated as a self-direct eligible
2806	2806	24 customer. Once the Agency determines that a
2807	2807	25 self-direct customer is eligible for participation in
2808	2808	26 the program, the self-direct customer will remain
2809	2809
2810	2810
2811	2811
2812	2812
2813	2813
2814	2814	HB2810 - 77 - LRB104 08813 BDA 18868 b
2815	2815
2816	2816
2817	2817	HB2810- 78 -LRB104 08813 BDA 18868 b HB2810 - 78 - LRB104 08813 BDA 18868 b
2818	2818	HB2810 - 78 - LRB104 08813 BDA 18868 b
2819	2819	1 eligible until the end of the term of the contract.
2820	2820	2 Thereafter, application may be made not less than 12
2821	2821	3 months before the filing date of the long-term
2822	2822	4 renewable resources procurement plan described in this
2823	2823	5 Act. At a minimum, such application shall contain the
2824	2824	6 following:
2825	2825	7 (i) the customer's certification that, at the
2826	2826	8 time of the customer's application, the customer
2827	2827	9 qualifies to be a self-direct eligible customer,
2828	2828	10 including documents demonstrating that
2829	2829	11 qualification;
2830	2830	12 (ii) the customer's certification that the
2831	2831	13 customer has entered into or will enter into by
2832	2832	14 the beginning of the applicable procurement year,
2833	2833	15 one or more bilateral contracts for new wind
2834	2834	16 projects or new photovoltaic projects, including
2835	2835	17 supporting documentation;
2836	2836	18 (iii) certification that the contract or
2837	2837	19 contracts for new renewable energy resources are
2838	2838	20 long-term contracts with term lengths of at least
2839	2839	21 10 years, including supporting documentation;
2840	2840	22 (iv) certification of the quantities of
2841	2841	23 renewable energy credits that the customer will
2842	2842	24 purchase each year under such contract or
2843	2843	25 contracts, including supporting documentation;
2844	2844	26 (v) proof that the contract is sufficient to
2845	2845
2846	2846
2847	2847
2848	2848
2849	2849
2850	2850	HB2810 - 78 - LRB104 08813 BDA 18868 b
2851	2851
2852	2852
2853	2853	HB2810- 79 -LRB104 08813 BDA 18868 b HB2810 - 79 - LRB104 08813 BDA 18868 b
2854	2854	HB2810 - 79 - LRB104 08813 BDA 18868 b
2855	2855	1 produce renewable energy credits to be equivalent
2856	2856	2 in volume to at least 40% of the large energy
2857	2857	3 customer's usage from the previous delivery year,
2858	2858	4 measured to the nearest megawatt-hour; and
2859	2859	5 (vi) certification that the customer intends
2860	2860	6 to maintain the contract for the duration of the
2861	2861	7 length of the contract.
2862	2862	8 (6) If a customer receives the self-direct credit
2863	2863	9 but fails to properly procure and retire renewable
2864	2864	10 energy credits as required under this subparagraph
2865	2865	11 (R), the Commission, on petition from the Agency and
2866	2866	12 after notice and hearing, may direct such customer's
2867	2867	13 utility to recover the cost of the wrongfully received
2868	2868	14 self-direct credits plus interest through an adder to
2869	2869	15 charges assessed pursuant to Section 16-108 of the
2870	2870	16 Public Utilities Act. Self-direct customers who
2871	2871	17 knowingly fail to properly procure and retire
2872	2872	18 renewable energy credits and do not notify the Agency
2873	2873	19 are ineligible for continued participation in the
2874	2874	20 self-direct renewable portfolio standard compliance
2875	2875	21 program.
2876	2876	22 (2) (Blank).
2877	2877	23 (3) (Blank).
2878	2878	24 (4) The electric utility shall retire all renewable
2879	2879	25 energy credits used to comply with the standard.
2880	2880	26 (5) Beginning with the 2010 delivery year and ending
2881	2881
2882	2882
2883	2883
2884	2884
2885	2885
2886	2886	HB2810 - 79 - LRB104 08813 BDA 18868 b
2887	2887
2888	2888
2889	2889	HB2810- 80 -LRB104 08813 BDA 18868 b HB2810 - 80 - LRB104 08813 BDA 18868 b
2890	2890	HB2810 - 80 - LRB104 08813 BDA 18868 b
2891	2891	1 June 1, 2017, an electric utility subject to this
2892	2892	2 subsection (c) shall apply the lesser of the maximum
2893	2893	3 alternative compliance payment rate or the most recent
2894	2894	4 estimated alternative compliance payment rate for its
2895	2895	5 service territory for the corresponding compliance period,
2896	2896	6 established pursuant to subsection (d) of Section 16-115D
2897	2897	7 of the Public Utilities Act to its retail customers that
2898	2898	8 take service pursuant to the electric utility's hourly
2899	2899	9 pricing tariff or tariffs. The electric utility shall
2900	2900	10 retain all amounts collected as a result of the
2901	2901	11 application of the alternative compliance payment rate or
2902	2902	12 rates to such customers, and, beginning in 2011, the
2903	2903	13 utility shall include in the information provided under
2904	2904	14 item (1) of subsection (d) of Section 16-111.5 of the
2905	2905	15 Public Utilities Act the amounts collected under the
2906	2906	16 alternative compliance payment rate or rates for the prior
2907	2907	17 year ending May 31. Notwithstanding any limitation on the
2908	2908	18 procurement of renewable energy resources imposed by item
2909	2909	19 (2) of this subsection (c), the Agency shall increase its
2910	2910	20 spending on the purchase of renewable energy resources to
2911	2911	21 be procured by the electric utility for the next plan year
2912	2912	22 by an amount equal to the amounts collected by the utility
2913	2913	23 under the alternative compliance payment rate or rates in
2914	2914	24 the prior year ending May 31.
2915	2915	25 (6) The electric utility shall be entitled to recover
2916	2916	26 all of its costs associated with the procurement of
2917	2917
2918	2918
2919	2919
2920	2920
2921	2921
2922	2922	HB2810 - 80 - LRB104 08813 BDA 18868 b
2923	2923
2924	2924
2925	2925	HB2810- 81 -LRB104 08813 BDA 18868 b HB2810 - 81 - LRB104 08813 BDA 18868 b
2926	2926	HB2810 - 81 - LRB104 08813 BDA 18868 b
2927	2927	1 renewable energy credits under plans approved under this
2928	2928	2 Section and Section 16-111.5 of the Public Utilities Act.
2929	2929	3 These costs shall include associated reasonable expenses
2930	2930	4 for implementing the procurement programs, including, but
2931	2931	5 not limited to, the costs of administering and evaluating
2932	2932	6 the Adjustable Block program, through an automatic
2933	2933	7 adjustment clause tariff in accordance with subsection (k)
2934	2934	8 of Section 16-108 of the Public Utilities Act.
2935	2935	9 (7) Renewable energy credits procured from new
2936	2936	10 photovoltaic projects or new distributed renewable energy
2937	2937	11 generation devices under this Section after June 1, 2017
2938	2938	12 (the effective date of Public Act 99-906) must be procured
2939	2939	13 from devices installed by a qualified person in compliance
2940	2940	14 with the requirements of Section 16-128A of the Public
2941	2941	15 Utilities Act and any rules or regulations adopted
2942	2942	16 thereunder.
2943	2943	17 In meeting the renewable energy requirements of this
2944	2944	18 subsection (c), to the extent feasible and consistent with
2945	2945	19 State and federal law, the renewable energy credit
2946	2946	20 procurements, Adjustable Block solar program, and
2947	2947	21 community renewable generation program shall provide
2948	2948	22 employment opportunities for all segments of the
2949	2949	23 population and workforce, including minority-owned and
2950	2950	24 female-owned business enterprises, and shall not,
2951	2951	25 consistent with State and federal law, discriminate based
2952	2952	26 on race or socioeconomic status.
2953	2953
2954	2954
2955	2955
2956	2956
2957	2957
2958	2958	HB2810 - 81 - LRB104 08813 BDA 18868 b
2959	2959
2960	2960
2961	2961	HB2810- 82 -LRB104 08813 BDA 18868 b HB2810 - 82 - LRB104 08813 BDA 18868 b
2962	2962	HB2810 - 82 - LRB104 08813 BDA 18868 b
2963	2963	1 (c-5) Procurement of renewable energy credits from new
2964	2964	2 renewable energy facilities installed at or adjacent to the
2965	2965	3 sites of electric generating facilities that burn or burned
2966	2966	4 coal as their primary fuel source.
2967	2967	5 (1) In addition to the procurement of renewable energy
2968	2968	6 credits pursuant to long-term renewable resources
2969	2969	7 procurement plans in accordance with subsection (c) of
2970	2970	8 this Section and Section 16-111.5 of the Public Utilities
2971	2971	9 Act, the Agency shall conduct procurement events in
2972	2972	10 accordance with this subsection (c-5) for the procurement
2973	2973	11 by electric utilities that served more than 300,000 retail
2974	2974	12 customers in this State as of January 1, 2019 of renewable
2975	2975	13 energy credits from new renewable energy facilities to be
2976	2976	14 installed at or adjacent to the sites of electric
2977	2977	15 generating facilities that, as of January 1, 2016, burned
2978	2978	16 coal as their primary fuel source and meet the other
2979	2979	17 criteria specified in this subsection (c-5). For purposes
2980	2980	18 of this subsection (c-5), "new renewable energy facility"
2981	2981	19 means a new utility-scale solar project as defined in this
2982	2982	20 Section 1-75. The renewable energy credits procured
2983	2983	21 pursuant to this subsection (c-5) may be included or
2984	2984	22 counted for purposes of compliance with the amounts of
2985	2985	23 renewable energy credits required to be procured pursuant
2986	2986	24 to subsection (c) of this Section to the extent that there
2987	2987	25 are otherwise shortfalls in compliance with such
2988	2988	26 requirements. The procurement of renewable energy credits
2989	2989
2990	2990
2991	2991
2992	2992
2993	2993
2994	2994	HB2810 - 82 - LRB104 08813 BDA 18868 b
2995	2995
2996	2996
2997	2997	HB2810- 83 -LRB104 08813 BDA 18868 b HB2810 - 83 - LRB104 08813 BDA 18868 b
2998	2998	HB2810 - 83 - LRB104 08813 BDA 18868 b
2999	2999	1 by electric utilities pursuant to this subsection (c-5)
3000	3000	2 shall be funded solely by revenues collected from the Coal
3001	3001	3 to Solar and Energy Storage Initiative Charge provided for
3002	3002	4 in this subsection (c-5) and subsection (i-5) of Section
3003	3003	5 16-108 of the Public Utilities Act, shall not be funded by
3004	3004	6 revenues collected through any of the other funding
3005	3005	7 mechanisms provided for in subsection (c) of this Section,
3006	3006	8 and shall not be subject to the limitation imposed by
3007	3007	9 subsection (c) on charges to retail customers for costs to
3008	3008	10 procure renewable energy resources pursuant to subsection
3009	3009	11 (c), and shall not be subject to any other requirements or
3010	3010	12 limitations of subsection (c).
3011	3011	13 (2) The Agency shall conduct 2 procurement events to
3012	3012	14 select owners of electric generating facilities meeting
3013	3013	15 the eligibility criteria specified in this subsection
3014	3014	16 (c-5) to enter into long-term contracts to sell renewable
3015	3015	17 energy credits to electric utilities serving more than
3016	3016	18 300,000 retail customers in this State as of January 1,
3017	3017	19 2019. The first procurement event shall be conducted no
3018	3018	20 later than March 31, 2022, unless the Agency elects to
3019	3019	21 delay it, until no later than May 1, 2022, due to its
3020	3020	22 overall volume of work, and shall be to select owners of
3021	3021	23 electric generating facilities located in this State and
3022	3022	24 south of federal Interstate Highway 80 that meet the
3023	3023	25 eligibility criteria specified in this subsection (c-5).
3024	3024	26 The second procurement event shall be conducted no sooner
3025	3025
3026	3026
3027	3027
3028	3028
3029	3029
3030	3030	HB2810 - 83 - LRB104 08813 BDA 18868 b
3031	3031
3032	3032
3033	3033	HB2810- 84 -LRB104 08813 BDA 18868 b HB2810 - 84 - LRB104 08813 BDA 18868 b
3034	3034	HB2810 - 84 - LRB104 08813 BDA 18868 b
3035	3035	1 than September 30, 2022 and no later than October 31, 2022
3036	3036	2 and shall be to select owners of electric generating
3037	3037	3 facilities located anywhere in this State that meet the
3038	3038	4 eligibility criteria specified in this subsection (c-5).
3039	3039	5 The Agency shall establish and announce a time period,
3040	3040	6 which shall begin no later than 30 days prior to the
3041	3041	7 scheduled date for the procurement event, during which
3042	3042	8 applicants may submit applications to be selected as
3043	3043	9 suppliers of renewable energy credits pursuant to this
3044	3044	10 subsection (c-5). The eligibility criteria for selection
3045	3045	11 as a supplier of renewable energy credits pursuant to this
3046	3046	12 subsection (c-5) shall be as follows:
3047	3047	13 (A) The applicant owns an electric generating
3048	3048	14 facility located in this State that: (i) as of January
3049	3049	15 1, 2016, burned coal as its primary fuel to generate
3050	3050	16 electricity; and (ii) has, or had prior to retirement,
3051	3051	17 an electric generating capacity of at least 150
3052	3052	18 megawatts. The electric generating facility can be
3053	3053	19 either: (i) retired as of the date of the procurement
3054	3054	20 event; or (ii) still operating as of the date of the
3055	3055	21 procurement event.
3056	3056	22 (B) The applicant is not (i) an electric
3057	3057	23 cooperative as defined in Section 3-119 of the Public
3058	3058	24 Utilities Act, or (ii) an entity described in
3059	3059	25 subsection (b)(1) of Section 3-105 of the Public
3060	3060	26 Utilities Act, or an association or consortium of or
3061	3061
3062	3062
3063	3063
3064	3064
3065	3065
3066	3066	HB2810 - 84 - LRB104 08813 BDA 18868 b
3067	3067
3068	3068
3069	3069	HB2810- 85 -LRB104 08813 BDA 18868 b HB2810 - 85 - LRB104 08813 BDA 18868 b
3070	3070	HB2810 - 85 - LRB104 08813 BDA 18868 b
3071	3071	1 an entity owned by entities described in (i) or (ii);
3072	3072	2 and the coal-fueled electric generating facility was
3073	3073	3 at one time owned, in whole or in part, by a public
3074	3074	4 utility as defined in Section 3-105 of the Public
3075	3075	5 Utilities Act.
3076	3076	6 (C) If participating in the first procurement
3077	3077	7 event, the applicant proposes and commits to construct
3078	3078	8 and operate, at the site, and if necessary for
3079	3079	9 sufficient space on property adjacent to the existing
3080	3080	10 property, at which the electric generating facility
3081	3081	11 identified in paragraph (A) is located: (i) a new
3082	3082	12 renewable energy facility of at least 20 megawatts but
3083	3083	13 no more than 100 megawatts of electric generating
3084	3084	14 capacity, and (ii) an energy storage facility having a
3085	3085	15 storage capacity equal to at least 2 megawatts and at
3086	3086	16 most 10 megawatts. If participating in the second
3087	3087	17 procurement event, the applicant proposes and commits
3088	3088	18 to construct and operate, at the site, and if
3089	3089	19 necessary for sufficient space on property adjacent to
3090	3090	20 the existing property, at which the electric
3091	3091	21 generating facility identified in paragraph (A) is
3092	3092	22 located: (i) a new renewable energy facility of at
3093	3093	23 least 5 megawatts but no more than 20 megawatts of
3094	3094	24 electric generating capacity, and (ii) an energy
3095	3095	25 storage facility having a storage capacity equal to at
3096	3096	26 least 0.5 megawatts and at most one megawatt.
3097	3097
3098	3098
3099	3099
3100	3100
3101	3101
3102	3102	HB2810 - 85 - LRB104 08813 BDA 18868 b
3103	3103
3104	3104
3105	3105	HB2810- 86 -LRB104 08813 BDA 18868 b HB2810 - 86 - LRB104 08813 BDA 18868 b
3106	3106	HB2810 - 86 - LRB104 08813 BDA 18868 b
3107	3107	1 (D) The applicant agrees that the new renewable
3108	3108	2 energy facility and the energy storage facility will
3109	3109	3 be constructed or installed by a qualified entity or
3110	3110	4 entities in compliance with the requirements of
3111	3111	5 subsection (g) of Section 16-128A of the Public
3112	3112	6 Utilities Act and any rules adopted thereunder.
3113	3113	7 (E) The applicant agrees that personnel operating
3114	3114	8 the new renewable energy facility and the energy
3115	3115	9 storage facility will have the requisite skills,
3116	3116	10 knowledge, training, experience, and competence, which
3117	3117	11 may be demonstrated by completion or current
3118	3118	12 participation and ultimate completion by employees of
3119	3119	13 an accredited or otherwise recognized apprenticeship
3120	3120	14 program for the employee's particular craft, trade, or
3121	3121	15 skill, including through training and education
3122	3122	16 courses and opportunities offered by the owner to
3123	3123	17 employees of the coal-fueled electric generating
3124	3124	18 facility or by previous employment experience
3125	3125	19 performing the employee's particular work skill or
3126	3126	20 function.
3127	3127	21 (F) The applicant commits that not less than the
3128	3128	22 prevailing wage, as determined pursuant to the
3129	3129	23 Prevailing Wage Act, will be paid to the applicant's
3130	3130	24 employees engaged in construction activities
3131	3131	25 associated with the new renewable energy facility and
3132	3132	26 the new energy storage facility and to the employees
3133	3133
3134	3134
3135	3135
3136	3136
3137	3137
3138	3138	HB2810 - 86 - LRB104 08813 BDA 18868 b
3139	3139
3140	3140
3141	3141	HB2810- 87 -LRB104 08813 BDA 18868 b HB2810 - 87 - LRB104 08813 BDA 18868 b
3142	3142	HB2810 - 87 - LRB104 08813 BDA 18868 b
3143	3143	1 of applicant's contractors engaged in construction
3144	3144	2 activities associated with the new renewable energy
3145	3145	3 facility and the new energy storage facility, and
3146	3146	4 that, on or before the commercial operation date of
3147	3147	5 the new renewable energy facility, the applicant shall
3148	3148	6 file a report with the Agency certifying that the
3149	3149	7 requirements of this subparagraph (F) have been met.
3150	3150	8 (G) The applicant commits that if selected, it
3151	3151	9 will negotiate a project labor agreement for the
3152	3152	10 construction of the new renewable energy facility and
3153	3153	11 associated energy storage facility that includes
3154	3154	12 provisions requiring the parties to the agreement to
3155	3155	13 work together to establish diversity threshold
3156	3156	14 requirements and to ensure best efforts to meet
3157	3157	15 diversity targets, improve diversity at the applicable
3158	3158	16 job site, create diverse apprenticeship opportunities,
3159	3159	17 and create opportunities to employ former coal-fired
3160	3160	18 power plant workers.
3161	3161	19 (H) The applicant commits to enter into a contract
3162	3162	20 or contracts for the applicable duration to provide
3163	3163	21 specified numbers of renewable energy credits each
3164	3164	22 year from the new renewable energy facility to
3165	3165	23 electric utilities that served more than 300,000
3166	3166	24 retail customers in this State as of January 1, 2019,
3167	3167	25 at a price of $30 per renewable energy credit. The
3168	3168	26 price per renewable energy credit shall be fixed at
3169	3169
3170	3170
3171	3171
3172	3172
3173	3173
3174	3174	HB2810 - 87 - LRB104 08813 BDA 18868 b
3175	3175
3176	3176
3177	3177	HB2810- 88 -LRB104 08813 BDA 18868 b HB2810 - 88 - LRB104 08813 BDA 18868 b
3178	3178	HB2810 - 88 - LRB104 08813 BDA 18868 b
3179	3179	1 $30 for the applicable duration and the renewable
3180	3180	2 energy credits shall not be indexed renewable energy
3181	3181	3 credits as provided for in item (v) of subparagraph
3182	3182	4 (G) of paragraph (1) of subsection (c) of Section 1-75
3183	3183	5 of this Act. The applicable duration of each contract
3184	3184	6 shall be 20 years, unless the applicant is physically
3185	3185	7 interconnected to the PJM Interconnection, LLC
3186	3186	8 transmission grid and had a generating capacity of at
3187	3187	9 least 1,200 megawatts as of January 1, 2021, in which
3188	3188	10 case the applicable duration of the contract shall be
3189	3189	11 15 years.
3190	3190	12 (I) The applicant's application is certified by an
3191	3191	13 officer of the applicant and by an officer of the
3192	3192	14 applicant's ultimate parent company, if any.
3193	3193	15 (3) An applicant may submit applications to contract
3194	3194	16 to supply renewable energy credits from more than one new
3195	3195	17 renewable energy facility to be constructed at or adjacent
3196	3196	18 to one or more qualifying electric generating facilities
3197	3197	19 owned by the applicant. The Agency may select new
3198	3198	20 renewable energy facilities to be located at or adjacent
3199	3199	21 to the sites of more than one qualifying electric
3200	3200	22 generation facility owned by an applicant to contract with
3201	3201	23 electric utilities to supply renewable energy credits from
3202	3202	24 such facilities.
3203	3203	25 (4) The Agency shall assess fees to each applicant to
3204	3204	26 recover the Agency's costs incurred in receiving and
3205	3205
3206	3206
3207	3207
3208	3208
3209	3209
3210	3210	HB2810 - 88 - LRB104 08813 BDA 18868 b
3211	3211
3212	3212
3213	3213	HB2810- 89 -LRB104 08813 BDA 18868 b HB2810 - 89 - LRB104 08813 BDA 18868 b
3214	3214	HB2810 - 89 - LRB104 08813 BDA 18868 b
3215	3215	1 evaluating applications, conducting the procurement event,
3216	3216	2 developing contracts for sale, delivery and purchase of
3217	3217	3 renewable energy credits, and monitoring the
3218	3218	4 administration of such contracts, as provided for in this
3219	3219	5 subsection (c-5), including fees paid to a procurement
3220	3220	6 administrator retained by the Agency for one or more of
3221	3221	7 these purposes.
3222	3222	8 (5) The Agency shall select the applicants and the new
3223	3223	9 renewable energy facilities to contract with electric
3224	3224	10 utilities to supply renewable energy credits in accordance
3225	3225	11 with this subsection (c-5). In the first procurement
3226	3226	12 event, the Agency shall select applicants and new
3227	3227	13 renewable energy facilities to supply renewable energy
3228	3228	14 credits, at a price of $30 per renewable energy credit,
3229	3229	15 aggregating to no less than 400,000 renewable energy
3230	3230	16 credits per year for the applicable duration, assuming
3231	3231	17 sufficient qualifying applications to supply, in the
3232	3232	18 aggregate, at least that amount of renewable energy
3233	3233	19 credits per year; and not more than 580,000 renewable
3234	3234	20 energy credits per year for the applicable duration. In
3235	3235	21 the second procurement event, the Agency shall select
3236	3236	22 applicants and new renewable energy facilities to supply
3237	3237	23 renewable energy credits, at a price of $30 per renewable
3238	3238	24 energy credit, aggregating to no more than 625,000
3239	3239	25 renewable energy credits per year less the amount of
3240	3240	26 renewable energy credits each year contracted for as a
3241	3241
3242	3242
3243	3243
3244	3244
3245	3245
3246	3246	HB2810 - 89 - LRB104 08813 BDA 18868 b
3247	3247
3248	3248
3249	3249	HB2810- 90 -LRB104 08813 BDA 18868 b HB2810 - 90 - LRB104 08813 BDA 18868 b
3250	3250	HB2810 - 90 - LRB104 08813 BDA 18868 b
3251	3251	1 result of the first procurement event, for the applicable
3252	3252	2 durations. The number of renewable energy credits to be
3253	3253	3 procured as specified in this paragraph (5) shall not be
3254	3254	4 reduced based on renewable energy credits procured in the
3255	3255	5 self-direct renewable energy credit compliance program
3256	3256	6 established pursuant to subparagraph (R) of paragraph (1)
3257	3257	7 of subsection (c) of Section 1-75.
3258	3258	8 (6) The obligation to purchase renewable energy
3259	3259	9 credits from the applicants and their new renewable energy
3260	3260	10 facilities selected by the Agency shall be allocated to
3261	3261	11 the electric utilities based on their respective
3262	3262	12 percentages of kilowatthours delivered to delivery
3263	3263	13 services customers to the aggregate kilowatthour
3264	3264	14 deliveries by the electric utilities to delivery services
3265	3265	15 customers for the year ended December 31, 2021. In order
3266	3266	16 to achieve these allocation percentages between or among
3267	3267	17 the electric utilities, the Agency shall require each
3268	3268	18 applicant that is selected in the procurement event to
3269	3269	19 enter into a contract with each electric utility for the
3270	3270	20 sale and purchase of renewable energy credits from each
3271	3271	21 new renewable energy facility to be constructed and
3272	3272	22 operated by the applicant, with the sale and purchase
3273	3273	23 obligations under the contracts to aggregate to the total
3274	3274	24 number of renewable energy credits per year to be supplied
3275	3275	25 by the applicant from the new renewable energy facility.
3276	3276	26 (7) The Agency shall submit its proposed selection of
3277	3277
3278	3278
3279	3279
3280	3280
3281	3281
3282	3282	HB2810 - 90 - LRB104 08813 BDA 18868 b
3283	3283
3284	3284
3285	3285	HB2810- 91 -LRB104 08813 BDA 18868 b HB2810 - 91 - LRB104 08813 BDA 18868 b
3286	3286	HB2810 - 91 - LRB104 08813 BDA 18868 b
3287	3287	1 applicants, new renewable energy facilities to be
3288	3288	2 constructed, and renewable energy credit amounts for each
3289	3289	3 procurement event to the Commission for approval. The
3290	3290	4 Commission shall, within 2 business days after receipt of
3291	3291	5 the Agency's proposed selections, approve the proposed
3292	3292	6 selections if it determines that the applicants and the
3293	3293	7 new renewable energy facilities to be constructed meet the
3294	3294	8 selection criteria set forth in this subsection (c-5) and
3295	3295	9 that the Agency seeks approval for contracts of applicable
3296	3296	10 durations aggregating to no more than the maximum amount
3297	3297	11 of renewable energy credits per year authorized by this
3298	3298	12 subsection (c-5) for the procurement event, at a price of
3299	3299	13 $30 per renewable energy credit.
3300	3300	14 (8) The Agency, in conjunction with its procurement
3301	3301	15 administrator if one is retained, the electric utilities,
3302	3302	16 and potential applicants for contracts to produce and
3303	3303	17 supply renewable energy credits pursuant to this
3304	3304	18 subsection (c-5), shall develop a standard form contract
3305	3305	19 for the sale, delivery and purchase of renewable energy
3306	3306	20 credits pursuant to this subsection (c-5). Each contract
3307	3307	21 resulting from the first procurement event shall allow for
3308	3308	22 a commercial operation date for the new renewable energy
3309	3309	23 facility of either June 1, 2023 or June 1, 2024, with such
3310	3310	24 dates subject to adjustment as provided in this paragraph.
3311	3311	25 Each contract resulting from the second procurement event
3312	3312	26 shall provide for a commercial operation date on June 1
3313	3313
3314	3314
3315	3315
3316	3316
3317	3317
3318	3318	HB2810 - 91 - LRB104 08813 BDA 18868 b
3319	3319
3320	3320
3321	3321	HB2810- 92 -LRB104 08813 BDA 18868 b HB2810 - 92 - LRB104 08813 BDA 18868 b
3322	3322	HB2810 - 92 - LRB104 08813 BDA 18868 b
3323	3323	1 next occurring up to 48 months after execution of the
3324	3324	2 contract. Each contract shall provide that the owner shall
3325	3325	3 receive payments for renewable energy credits for the
3326	3326	4 applicable durations beginning with the commercial
3327	3327	5 operation date of the new renewable energy facility. The
3328	3328	6 form contract shall provide for adjustments to the
3329	3329	7 commercial operation and payment start dates as needed due
3330	3330	8 to any delays in completing the procurement and
3331	3331	9 contracting processes, in finalizing interconnection
3332	3332	10 agreements and installing interconnection facilities, and
3333	3333	11 in obtaining other necessary governmental permits and
3334	3334	12 approvals. The form contract shall be, to the maximum
3335	3335	13 extent possible, consistent with standard electric
3336	3336	14 industry contracts for sale, delivery, and purchase of
3337	3337	15 renewable energy credits while taking into account the
3338	3338	16 specific requirements of this subsection (c-5). The form
3339	3339	17 contract shall provide for over-delivery and
3340	3340	18 under-delivery of renewable energy credits within
3341	3341	19 reasonable ranges during each 12-month period and penalty,
3342	3342	20 default, and enforcement provisions for failure of the
3343	3343	21 selling party to deliver renewable energy credits as
3344	3344	22 specified in the contract and to comply with the
3345	3345	23 requirements of this subsection (c-5). The standard form
3346	3346	24 contract shall specify that all renewable energy credits
3347	3347	25 delivered to the electric utility pursuant to the contract
3348	3348	26 shall be retired. The Agency shall make the proposed
3349	3349
3350	3350
3351	3351
3352	3352
3353	3353
3354	3354	HB2810 - 92 - LRB104 08813 BDA 18868 b
3355	3355
3356	3356
3357	3357	HB2810- 93 -LRB104 08813 BDA 18868 b HB2810 - 93 - LRB104 08813 BDA 18868 b
3358	3358	HB2810 - 93 - LRB104 08813 BDA 18868 b
3359	3359	1 contracts available for a reasonable period for comment by
3360	3360	2 potential applicants, and shall publish the final form
3361	3361	3 contract at least 30 days before the date of the first
3362	3362	4 procurement event.
3363	3363	5 (9) Coal to Solar and Energy Storage Initiative
3364	3364	6 Charge.
3365	3365	7 (A) By no later than July 1, 2022, each electric
3366	3366	8 utility that served more than 300,000 retail customers
3367	3367	9 in this State as of January 1, 2019 shall file a tariff
3368	3368	10 with the Commission for the billing and collection of
3369	3369	11 a Coal to Solar and Energy Storage Initiative Charge
3370	3370	12 in accordance with subsection (i-5) of Section 16-108
3371	3371	13 of the Public Utilities Act, with such tariff to be
3372	3372	14 effective, following review and approval or
3373	3373	15 modification by the Commission, beginning January 1,
3374	3374	16 2023. The tariff shall provide for the calculation and
3375	3375	17 setting of the electric utility's Coal to Solar and
3376	3376	18 Energy Storage Initiative Charge to collect revenues
3377	3377	19 estimated to be sufficient, in the aggregate, (i) to
3378	3378	20 enable the electric utility to pay for the renewable
3379	3379	21 energy credits it has contracted to purchase in the
3380	3380	22 delivery year beginning June 1, 2023 and each delivery
3381	3381	23 year thereafter from new renewable energy facilities
3382	3382	24 located at the sites of qualifying electric generating
3383	3383	25 facilities, and (ii) to fund the grant payments to be
3384	3384	26 made in each delivery year by the Department of
3385	3385
3386	3386
3387	3387
3388	3388
3389	3389
3390	3390	HB2810 - 93 - LRB104 08813 BDA 18868 b
3391	3391
3392	3392
3393	3393	HB2810- 94 -LRB104 08813 BDA 18868 b HB2810 - 94 - LRB104 08813 BDA 18868 b
3394	3394	HB2810 - 94 - LRB104 08813 BDA 18868 b
3395	3395	1 Commerce and Economic Opportunity, or any successor
3396	3396	2 department or agency, which shall be referred to in
3397	3397	3 this subsection (c-5) as the Department, pursuant to
3398	3398	4 paragraph (10) of this subsection (c-5). The electric
3399	3399	5 utility's tariff shall provide for the billing and
3400	3400	6 collection of the Coal to Solar and Energy Storage
3401	3401	7 Initiative Charge on each kilowatthour of electricity
3402	3402	8 delivered to its delivery services customers within
3403	3403	9 its service territory and shall provide for an annual
3404	3404	10 reconciliation of revenues collected with actual
3405	3405	11 costs, in accordance with subsection (i-5) of Section
3406	3406	12 16-108 of the Public Utilities Act.
3407	3407	13 (B) Each electric utility shall remit on a monthly
3408	3408	14 basis to the State Treasurer, for deposit in the Coal
3409	3409	15 to Solar and Energy Storage Initiative Fund provided
3410	3410	16 for in this subsection (c-5), the electric utility's
3411	3411	17 collections of the Coal to Solar and Energy Storage
3412	3412	18 Initiative Charge in the amount estimated to be needed
3413	3413	19 by the Department for grant payments pursuant to grant
3414	3414	20 contracts entered into by the Department pursuant to
3415	3415	21 paragraph (10) of this subsection (c-5).
3416	3416	22 (10) Coal to Solar and Energy Storage Initiative Fund.
3417	3417	23 (A) The Coal to Solar and Energy Storage
3418	3418	24 Initiative Fund is established as a special fund in
3419	3419	25 the State treasury. The Coal to Solar and Energy
3420	3420	26 Storage Initiative Fund is authorized to receive, by
3421	3421
3422	3422
3423	3423
3424	3424
3425	3425
3426	3426	HB2810 - 94 - LRB104 08813 BDA 18868 b
3427	3427
3428	3428
3429	3429	HB2810- 95 -LRB104 08813 BDA 18868 b HB2810 - 95 - LRB104 08813 BDA 18868 b
3430	3430	HB2810 - 95 - LRB104 08813 BDA 18868 b
3431	3431	1 statutory deposit, that portion specified in item (B)
3432	3432	2 of paragraph (9) of this subsection (c-5) of moneys
3433	3433	3 collected by electric utilities through imposition of
3434	3434	4 the Coal to Solar and Energy Storage Initiative Charge
3435	3435	5 required by this subsection (c-5). The Coal to Solar
3436	3436	6 and Energy Storage Initiative Fund shall be
3437	3437	7 administered by the Department to provide grants to
3438	3438	8 support the installation and operation of energy
3439	3439	9 storage facilities at the sites of qualifying electric
3440	3440	10 generating facilities meeting the criteria specified
3441	3441	11 in this paragraph (10).
3442	3442	12 (B) The Coal to Solar and Energy Storage
3443	3443	13 Initiative Fund shall not be subject to sweeps,
3444	3444	14 administrative charges, or chargebacks, including, but
3445	3445	15 not limited to, those authorized under Section 8h of
3446	3446	16 the State Finance Act, that would in any way result in
3447	3447	17 the transfer of those funds from the Coal to Solar and
3448	3448	18 Energy Storage Initiative Fund to any other fund of
3449	3449	19 this State or in having any such funds utilized for any
3450	3450	20 purpose other than the express purposes set forth in
3451	3451	21 this paragraph (10).
3452	3452	22 (C) The Department shall utilize up to
3453	3453	23 $280,500,000 in the Coal to Solar and Energy Storage
3454	3454	24 Initiative Fund for grants, assuming sufficient
3455	3455	25 qualifying applicants, to support installation of
3456	3456	26 energy storage facilities at the sites of up to 3
3457	3457
3458	3458
3459	3459
3460	3460
3461	3461
3462	3462	HB2810 - 95 - LRB104 08813 BDA 18868 b
3463	3463
3464	3464
3465	3465	HB2810- 96 -LRB104 08813 BDA 18868 b HB2810 - 96 - LRB104 08813 BDA 18868 b
3466	3466	HB2810 - 96 - LRB104 08813 BDA 18868 b
3467	3467	1 qualifying electric generating facilities located in
3468	3468	2 the Midcontinent Independent System Operator, Inc.,
3469	3469	3 region in Illinois and the sites of up to 2 qualifying
3470	3470	4 electric generating facilities located in the PJM
3471	3471	5 Interconnection, LLC region in Illinois that meet the
3472	3472	6 criteria set forth in this subparagraph (C). The
3473	3473	7 criteria for receipt of a grant pursuant to this
3474	3474	8 subparagraph (C) are as follows:
3475	3475	9 (1) the electric generating facility at the
3476	3476	10 site has, or had prior to retirement, an electric
3477	3477	11 generating capacity of at least 150 megawatts;
3478	3478	12 (2) the electric generating facility burns (or
3479	3479	13 burned prior to retirement) coal as its primary
3480	3480	14 source of fuel;
3481	3481	15 (3) if the electric generating facility is
3482	3482	16 retired, it was retired subsequent to January 1,
3483	3483	17 2016;
3484	3484	18 (4) the owner of the electric generating
3485	3485	19 facility has not been selected by the Agency
3486	3486	20 pursuant to this subsection (c-5) of this Section
3487	3487	21 to enter into a contract to sell renewable energy
3488	3488	22 credits to one or more electric utilities from a
3489	3489	23 new renewable energy facility located or to be
3490	3490	24 located at or adjacent to the site at which the
3491	3491	25 electric generating facility is located;
3492	3492	26 (5) the electric generating facility located
3493	3493
3494	3494
3495	3495
3496	3496
3497	3497
3498	3498	HB2810 - 96 - LRB104 08813 BDA 18868 b
3499	3499
3500	3500
3501	3501	HB2810- 97 -LRB104 08813 BDA 18868 b HB2810 - 97 - LRB104 08813 BDA 18868 b
3502	3502	HB2810 - 97 - LRB104 08813 BDA 18868 b
3503	3503	1 at the site was at one time owned, in whole or in
3504	3504	2 part, by a public utility as defined in Section
3505	3505	3 3-105 of the Public Utilities Act;
3506	3506	4 (6) the electric generating facility at the
3507	3507	5 site is not owned by (i) an electric cooperative
3508	3508	6 as defined in Section 3-119 of the Public
3509	3509	7 Utilities Act, or (ii) an entity described in
3510	3510	8 subsection (b)(1) of Section 3-105 of the Public
3511	3511	9 Utilities Act, or an association or consortium of
3512	3512	10 or an entity owned by entities described in items
3513	3513	11 (i) or (ii);
3514	3514	12 (7) the proposed energy storage facility at
3515	3515	13 the site will have energy storage capacity of at
3516	3516	14 least 37 megawatts;
3517	3517	15 (8) the owner commits to place the energy
3518	3518	16 storage facility into commercial operation on
3519	3519	17 either June 1, 2023, June 1, 2024, or June 1, 2025,
3520	3520	18 with such date subject to adjustment as needed due
3521	3521	19 to any delays in completing the grant contracting
3522	3522	20 process, in finalizing interconnection agreements
3523	3523	21 and in installing interconnection facilities, and
3524	3524	22 in obtaining necessary governmental permits and
3525	3525	23 approvals;
3526	3526	24 (9) the owner agrees that the new energy
3527	3527	25 storage facility will be constructed or installed
3528	3528	26 by a qualified entity or entities consistent with
3529	3529
3530	3530
3531	3531
3532	3532
3533	3533
3534	3534	HB2810 - 97 - LRB104 08813 BDA 18868 b
3535	3535
3536	3536
3537	3537	HB2810- 98 -LRB104 08813 BDA 18868 b HB2810 - 98 - LRB104 08813 BDA 18868 b
3538	3538	HB2810 - 98 - LRB104 08813 BDA 18868 b
3539	3539	1 the requirements of subsection (g) of Section
3540	3540	2 16-128A of the Public Utilities Act and any rules
3541	3541	3 adopted under that Section;
3542	3542	4 (10) the owner agrees that personnel operating
3543	3543	5 the energy storage facility will have the
3544	3544	6 requisite skills, knowledge, training, experience,
3545	3545	7 and competence, which may be demonstrated by
3546	3546	8 completion or current participation and ultimate
3547	3547	9 completion by employees of an accredited or
3548	3548	10 otherwise recognized apprenticeship program for
3549	3549	11 the employee's particular craft, trade, or skill,
3550	3550	12 including through training and education courses
3551	3551	13 and opportunities offered by the owner to
3552	3552	14 employees of the coal-fueled electric generating
3553	3553	15 facility or by previous employment experience
3554	3554	16 performing the employee's particular work skill or
3555	3555	17 function;
3556	3556	18 (11) the owner commits that not less than the
3557	3557	19 prevailing wage, as determined pursuant to the
3558	3558	20 Prevailing Wage Act, will be paid to the owner's
3559	3559	21 employees engaged in construction activities
3560	3560	22 associated with the new energy storage facility
3561	3561	23 and to the employees of the owner's contractors
3562	3562	24 engaged in construction activities associated with
3563	3563	25 the new energy storage facility, and that, on or
3564	3564	26 before the commercial operation date of the new
3565	3565
3566	3566
3567	3567
3568	3568
3569	3569
3570	3570	HB2810 - 98 - LRB104 08813 BDA 18868 b
3571	3571
3572	3572
3573	3573	HB2810- 99 -LRB104 08813 BDA 18868 b HB2810 - 99 - LRB104 08813 BDA 18868 b
3574	3574	HB2810 - 99 - LRB104 08813 BDA 18868 b
3575	3575	1 energy storage facility, the owner shall file a
3576	3576	2 report with the Department certifying that the
3577	3577	3 requirements of this subparagraph (11) have been
3578	3578	4 met; and
3579	3579	5 (12) the owner commits that if selected to
3580	3580	6 receive a grant, it will negotiate a project labor
3581	3581	7 agreement for the construction of the new energy
3582	3582	8 storage facility that includes provisions
3583	3583	9 requiring the parties to the agreement to work
3584	3584	10 together to establish diversity threshold
3585	3585	11 requirements and to ensure best efforts to meet
3586	3586	12 diversity targets, improve diversity at the
3587	3587	13 applicable job site, create diverse apprenticeship
3588	3588	14 opportunities, and create opportunities to employ
3589	3589	15 former coal-fired power plant workers.
3590	3590	16 The Department shall accept applications for this
3591	3591	17 grant program until March 31, 2022 and shall announce
3592	3592	18 the award of grants no later than June 1, 2022. The
3593	3593	19 Department shall make the grant payments to a
3594	3594	20 recipient in equal annual amounts for 10 years
3595	3595	21 following the date the energy storage facility is
3596	3596	22 placed into commercial operation. The annual grant
3597	3597	23 payments to a qualifying energy storage facility shall
3598	3598	24 be $110,000 per megawatt of energy storage capacity,
3599	3599	25 with total annual grant payments pursuant to this
3600	3600	26 subparagraph (C) for qualifying energy storage
3601	3601
3602	3602
3603	3603
3604	3604
3605	3605
3606	3606	HB2810 - 99 - LRB104 08813 BDA 18868 b
3607	3607
3608	3608
3609	3609	HB2810- 100 -LRB104 08813 BDA 18868 b HB2810 - 100 - LRB104 08813 BDA 18868 b
3610	3610	HB2810 - 100 - LRB104 08813 BDA 18868 b
3611	3611	1 facilities not to exceed $28,050,000 in any year.
3612	3612	2 (D) Grants of funding for energy storage
3613	3613	3 facilities pursuant to subparagraph (C) of this
3614	3614	4 paragraph (10), from the Coal to Solar and Energy
3615	3615	5 Storage Initiative Fund, shall be memorialized in
3616	3616	6 grant contracts between the Department and the
3617	3617	7 recipient. The grant contracts shall specify the date
3618	3618	8 or dates in each year on which the annual grant
3619	3619	9 payments shall be paid.
3620	3620	10 (E) All disbursements from the Coal to Solar and
3621	3621	11 Energy Storage Initiative Fund shall be made only upon
3622	3622	12 warrants of the Comptroller drawn upon the Treasurer
3623	3623	13 as custodian of the Fund upon vouchers signed by the
3624	3624	14 Director of the Department or by the person or persons
3625	3625	15 designated by the Director of the Department for that
3626	3626	16 purpose. The Comptroller is authorized to draw the
3627	3627	17 warrants upon vouchers so signed. The Treasurer shall
3628	3628	18 accept all written warrants so signed and shall be
3629	3629	19 released from liability for all payments made on those
3630	3630	20 warrants.
3631	3631	21 (11) Diversity, equity, and inclusion plans.
3632	3632	22 (A) Each applicant selected in a procurement event
3633	3633	23 to contract to supply renewable energy credits in
3634	3634	24 accordance with this subsection (c-5) and each owner
3635	3635	25 selected by the Department to receive a grant or
3636	3636	26 grants to support the construction and operation of a
3637	3637
3638	3638
3639	3639
3640	3640
3641	3641
3642	3642	HB2810 - 100 - LRB104 08813 BDA 18868 b
3643	3643
3644	3644
3645	3645	HB2810- 101 -LRB104 08813 BDA 18868 b HB2810 - 101 - LRB104 08813 BDA 18868 b
3646	3646	HB2810 - 101 - LRB104 08813 BDA 18868 b
3647	3647	1 new energy storage facility or facilities in
3648	3648	2 accordance with this subsection (c-5) shall, within 60
3649	3649	3 days following the Commission's approval of the
3650	3650	4 applicant to contract to supply renewable energy
3651	3651	5 credits or within 60 days following execution of a
3652	3652	6 grant contract with the Department, as applicable,
3653	3653	7 submit to the Commission a diversity, equity, and
3654	3654	8 inclusion plan setting forth the applicant's or
3655	3655	9 owner's numeric goals for the diversity composition of
3656	3656	10 its supplier entities for the new renewable energy
3657	3657	11 facility or new energy storage facility, as
3658	3658	12 applicable, which shall be referred to for purposes of
3659	3659	13 this paragraph (11) as the project, and the
3660	3660	14 applicant's or owner's action plan and schedule for
3661	3661	15 achieving those goals.
3662	3662	16 (B) For purposes of this paragraph (11), diversity
3663	3663	17 composition shall be based on the percentage, which
3664	3664	18 shall be a minimum of 25%, of eligible expenditures
3665	3665	19 for contract awards for materials and services (which
3666	3666	20 shall be defined in the plan) to business enterprises
3667	3667	21 owned by minority persons, women, or persons with
3668	3668	22 disabilities as defined in Section 2 of the Business
3669	3669	23 Enterprise for Minorities, Women, and Persons with
3670	3670	24 Disabilities Act, to LGBTQ business enterprises, to
3671	3671	25 veteran-owned business enterprises, and to business
3672	3672	26 enterprises located in environmental justice
3673	3673
3674	3674
3675	3675
3676	3676
3677	3677
3678	3678	HB2810 - 101 - LRB104 08813 BDA 18868 b
3679	3679
3680	3680
3681	3681	HB2810- 102 -LRB104 08813 BDA 18868 b HB2810 - 102 - LRB104 08813 BDA 18868 b
3682	3682	HB2810 - 102 - LRB104 08813 BDA 18868 b
3683	3683	1 communities. The diversity composition goals of the
3684	3684	2 plan may include eligible expenditures in areas for
3685	3685	3 vendor or supplier opportunities in addition to
3686	3686	4 development and construction of the project, and may
3687	3687	5 exclude from eligible expenditures materials and
3688	3688	6 services with limited market availability, limited
3689	3689	7 production and availability from suppliers in the
3690	3690	8 United States, such as solar panels and storage
3691	3691	9 batteries, and material and services that are subject
3692	3692	10 to critical energy infrastructure or cybersecurity
3693	3693	11 requirements or restrictions. The plan may provide
3694	3694	12 that the diversity composition goals may be met
3695	3695	13 through Tier 1 Direct or Tier 2 subcontracting
3696	3696	14 expenditures or a combination thereof for the project.
3697	3697	15 (C) The plan shall provide for, but not be limited
3698	3698	16 to: (i) internal initiatives, including multi-tier
3699	3699	17 initiatives, by the applicant or owner, or by its
3700	3700	18 engineering, procurement and construction contractor
3701	3701	19 if one is used for the project, which for purposes of
3702	3702	20 this paragraph (11) shall be referred to as the EPC
3703	3703	21 contractor, to enable diverse businesses to be
3704	3704	22 considered fairly for selection to provide materials
3705	3705	23 and services; (ii) requirements for the applicant or
3706	3706	24 owner or its EPC contractor to proactively solicit and
3707	3707	25 utilize diverse businesses to provide materials and
3708	3708	26 services; and (iii) requirements for the applicant or
3709	3709
3710	3710
3711	3711
3712	3712
3713	3713
3714	3714	HB2810 - 102 - LRB104 08813 BDA 18868 b
3715	3715
3716	3716
3717	3717	HB2810- 103 -LRB104 08813 BDA 18868 b HB2810 - 103 - LRB104 08813 BDA 18868 b
3718	3718	HB2810 - 103 - LRB104 08813 BDA 18868 b
3719	3719	1 owner or its EPC contractor to hire a diverse
3720	3720	2 workforce for the project. The plan shall include a
3721	3721	3 description of the applicant's or owner's diversity
3722	3722	4 recruiting efforts both for the project and for other
3723	3723	5 areas of the applicant's or owner's business
3724	3724	6 operations. The plan shall provide for the imposition
3725	3725	7 of financial penalties on the applicant's or owner's
3726	3726	8 EPC contractor for failure to exercise best efforts to
3727	3727	9 comply with and execute the EPC contractor's diversity
3728	3728	10 obligations under the plan. The plan may provide for
3729	3729	11 the applicant or owner to set aside a portion of the
3730	3730	12 work on the project to serve as an incubation program
3731	3731	13 for qualified businesses, as specified in the plan,
3732	3732	14 owned by minority persons, women, persons with
3733	3733	15 disabilities, LGBTQ persons, and veterans, and
3734	3734	16 businesses located in environmental justice
3735	3735	17 communities, seeking to enter the renewable energy
3736	3736	18 industry.
3737	3737	19 (D) The applicant or owner may submit a revised or
3738	3738	20 updated plan to the Commission from time to time as
3739	3739	21 circumstances warrant. The applicant or owner shall
3740	3740	22 file annual reports with the Commission detailing the
3741	3741	23 applicant's or owner's progress in implementing its
3742	3742	24 plan and achieving its goals and any modifications the
3743	3743	25 applicant or owner has made to its plan to better
3744	3744	26 achieve its diversity, equity and inclusion goals. The
3745	3745
3746	3746
3747	3747
3748	3748
3749	3749
3750	3750	HB2810 - 103 - LRB104 08813 BDA 18868 b
3751	3751
3752	3752
3753	3753	HB2810- 104 -LRB104 08813 BDA 18868 b HB2810 - 104 - LRB104 08813 BDA 18868 b
3754	3754	HB2810 - 104 - LRB104 08813 BDA 18868 b
3755	3755	1 applicant or owner shall file a final report on the
3756	3756	2 fifth June 1 following the commercial operation date
3757	3757	3 of the new renewable energy resource or new energy
3758	3758	4 storage facility, but the applicant or owner shall
3759	3759	5 thereafter continue to be subject to applicable
3760	3760	6 reporting requirements of Section 5-117 of the Public
3761	3761	7 Utilities Act.
3762	3762	8 (c-10) Equity accountability system. It is the purpose of
3763	3763	9 this subsection (c-10) to create an equity accountability
3764	3764	10 system, which includes the minimum equity standards for all
3765	3765	11 renewable energy procurements, the equity category of the
3766	3766	12 Adjustable Block Program, and the equity prioritization for
3767	3767	13 noncompetitive procurements, that is successful in advancing
3768	3768	14 priority access to the clean energy economy for businesses and
3769	3769	15 workers from communities that have been excluded from economic
3770	3770	16 opportunities in the energy sector, have been subject to
3771	3771	17 disproportionate levels of pollution, and have
3772	3772	18 disproportionately experienced negative public health
3773	3773	19 outcomes. Further, it is the purpose of this subsection to
3774	3774	20 ensure that this equity accountability system is successful in
3775	3775	21 advancing equity across Illinois by providing access to the
3776	3776	22 clean energy economy for businesses and workers from
3777	3777	23 communities that have been historically excluded from economic
3778	3778	24 opportunities in the energy sector, have been subject to
3779	3779	25 disproportionate levels of pollution, and have
3780	3780	26 disproportionately experienced negative public health
3781	3781
3782	3782
3783	3783
3784	3784
3785	3785
3786	3786	HB2810 - 104 - LRB104 08813 BDA 18868 b
3787	3787
3788	3788
3789	3789	HB2810- 105 -LRB104 08813 BDA 18868 b HB2810 - 105 - LRB104 08813 BDA 18868 b
3790	3790	HB2810 - 105 - LRB104 08813 BDA 18868 b
3791	3791	1 outcomes.
3792	3792	2 (1) Minimum equity standards. The Agency shall create
3793	3793	3 programs with the purpose of increasing access to and
3794	3794	4 development of equity eligible contractors, who are prime
3795	3795	5 contractors and subcontractors, across all of the programs
3796	3796	6 it manages. All applications for renewable energy credit
3797	3797	7 procurements shall comply with specific minimum equity
3798	3798	8 commitments. Starting in the delivery year immediately
3799	3799	9 following the next long-term renewable resources
3800	3800	10 procurement plan, at least 10% of the project workforce
3801	3801	11 for each entity participating in a procurement program
3802	3802	12 outlined in this subsection (c-10) must be done by equity
3803	3803	13 eligible persons or equity eligible contractors. The
3804	3804	14 Agency shall increase the minimum percentage each delivery
3805	3805	15 year thereafter by increments that ensure a statewide
3806	3806	16 average of 30% of the project workforce for each entity
3807	3807	17 participating in a procurement program is done by equity
3808	3808	18 eligible persons or equity eligible contractors by 2030.
3809	3809	19 The Agency shall propose a schedule of percentage
3810	3810	20 increases to the minimum equity standards in its draft
3811	3811	21 revised renewable energy resources procurement plan
3812	3812	22 submitted to the Commission for approval pursuant to
3813	3813	23 paragraph (5) of subsection (b) of Section 16-111.5 of the
3814	3814	24 Public Utilities Act. In determining these annual
3815	3815	25 increases, the Agency shall have the discretion to
3816	3816	26 establish different minimum equity standards for different
3817	3817
3818	3818
3819	3819
3820	3820
3821	3821
3822	3822	HB2810 - 105 - LRB104 08813 BDA 18868 b
3823	3823
3824	3824
3825	3825	HB2810- 106 -LRB104 08813 BDA 18868 b HB2810 - 106 - LRB104 08813 BDA 18868 b
3826	3826	HB2810 - 106 - LRB104 08813 BDA 18868 b
3827	3827	1 types of procurements and different regions of the State
3828	3828	2 if the Agency finds that doing so will further the
3829	3829	3 purposes of this subsection (c-10). The proposed schedule
3830	3830	4 of annual increases shall be revisited and updated on an
3831	3831	5 annual basis. Revisions shall be developed with
3832	3832	6 stakeholder input, including from equity eligible persons,
3833	3833	7 equity eligible contractors, clean energy industry
3834	3834	8 representatives, and community-based organizations that
3835	3835	9 work with such persons and contractors.
3836	3836	10 (A) At the start of each delivery year, the Agency
3837	3837	11 shall require a compliance plan from each entity
3838	3838	12 participating in a procurement program of subsection
3839	3839	13 (c) of this Section that demonstrates how they will
3840	3840	14 achieve compliance with the minimum equity standard
3841	3841	15 percentage for work completed in that delivery year.
3842	3842	16 If an entity applies for its approved vendor or
3843	3843	17 designee status between delivery years, the Agency
3844	3844	18 shall require a compliance plan at the time of
3845	3845	19 application.
3846	3846	20 (B) Halfway through each delivery year, the Agency
3847	3847	21 shall require each entity participating in a
3848	3848	22 procurement program to confirm that it will achieve
3849	3849	23 compliance in that delivery year, when applicable. The
3850	3850	24 Agency may offer corrective action plans to entities
3851	3851	25 that are not on track to achieve compliance.
3852	3852	26 (C) At the end of each delivery year, each entity
3853	3853
3854	3854
3855	3855
3856	3856
3857	3857
3858	3858	HB2810 - 106 - LRB104 08813 BDA 18868 b
3859	3859
3860	3860
3861	3861	HB2810- 107 -LRB104 08813 BDA 18868 b HB2810 - 107 - LRB104 08813 BDA 18868 b
3862	3862	HB2810 - 107 - LRB104 08813 BDA 18868 b
3863	3863	1 participating and completing work in that delivery
3864	3864	2 year in a procurement program of subsection (c) shall
3865	3865	3 submit a report to the Agency that demonstrates how it
3866	3866	4 achieved compliance with the minimum equity standards
3867	3867	5 percentage for that delivery year.
3868	3868	6 (D) The Agency shall prohibit participation in
3869	3869	7 procurement programs by an approved vendor or
3870	3870	8 designee, as applicable, or entities with which an
3871	3871	9 approved vendor or designee, as applicable, shares a
3872	3872	10 common parent company if an approved vendor or
3873	3873	11 designee, as applicable, failed to meet the minimum
3874	3874	12 equity standards for the prior delivery year. Waivers
3875	3875	13 approved for lack of equity eligible persons or equity
3876	3876	14 eligible contractors in a geographic area of a project
3877	3877	15 shall not count against the approved vendor or
3878	3878	16 designee. The Agency shall offer a corrective action
3879	3879	17 plan for any such entities to assist them in obtaining
3880	3880	18 compliance and shall allow continued access to
3881	3881	19 procurement programs upon an approved vendor or
3882	3882	20 designee demonstrating compliance.
3883	3883	21 (E) The Agency shall pursue efficiencies achieved
3884	3884	22 by combining with other approved vendor or designee
3885	3885	23 reporting.
3886	3886	24 (2) Equity accountability system within the Adjustable
3887	3887	25 Block program. The equity category described in item (vi)
3888	3888	26 of subparagraph (K) of subsection (c) is only available to
3889	3889
3890	3890
3891	3891
3892	3892
3893	3893
3894	3894	HB2810 - 107 - LRB104 08813 BDA 18868 b
3895	3895
3896	3896
3897	3897	HB2810- 108 -LRB104 08813 BDA 18868 b HB2810 - 108 - LRB104 08813 BDA 18868 b
3898	3898	HB2810 - 108 - LRB104 08813 BDA 18868 b
3899	3899	1 applicants that are equity eligible contractors.
3900	3900	2 (3) Equity accountability system within competitive
3901	3901	3 procurements. Through its long-term renewable resources
3902	3902	4 procurement plan, the Agency shall develop requirements
3903	3903	5 for ensuring that competitive procurement processes,
3904	3904	6 including utility-scale solar, utility-scale wind, and
3905	3905	7 brownfield site photovoltaic projects, advance the equity
3906	3906	8 goals of this subsection (c-10). Subject to Commission
3907	3907	9 approval, the Agency shall develop bid application
3908	3908	10 requirements and a bid evaluation methodology for ensuring
3909	3909	11 that utilization of equity eligible contractors, whether
3910	3910	12 as bidders or as participants on project development, is
3911	3911	13 optimized, including requiring that winning or successful
3912	3912	14 applicants for utility-scale projects are or will partner
3913	3913	15 with equity eligible contractors and giving preference to
3914	3914	16 bids through which a higher portion of contract value
3915	3915	17 flows to equity eligible contractors. To the extent
3916	3916	18 practicable, entities participating in competitive
3917	3917	19 procurements shall also be required to meet all the equity
3918	3918	20 accountability requirements for approved vendors and their
3919	3919	21 designees under this subsection (c-10). In developing
3920	3920	22 these requirements, the Agency shall also consider whether
3921	3921	23 equity goals can be further advanced through additional
3922	3922	24 measures.
3923	3923	25 (4) In the first revision to the long-term renewable
3924	3924	26 energy resources procurement plan and each revision
3925	3925
3926	3926
3927	3927
3928	3928
3929	3929
3930	3930	HB2810 - 108 - LRB104 08813 BDA 18868 b
3931	3931
3932	3932
3933	3933	HB2810- 109 -LRB104 08813 BDA 18868 b HB2810 - 109 - LRB104 08813 BDA 18868 b
3934	3934	HB2810 - 109 - LRB104 08813 BDA 18868 b
3935	3935	1 thereafter, the Agency shall include the following:
3936	3936	2 (A) The current status and number of equity
3937	3937	3 eligible contractors listed in the Energy Workforce
3938	3938	4 Equity Database designed in subsection (c-25),
3939	3939	5 including the number of equity eligible contractors
3940	3940	6 with current certifications as issued by the Agency.
3941	3941	7 (B) A mechanism for measuring, tracking, and
3942	3942	8 reporting project workforce at the approved vendor or
3943	3943	9 designee level, as applicable, which shall include a
3944	3944	10 measurement methodology and records to be made
3945	3945	11 available for audit by the Agency or the Program
3946	3946	12 Administrator.
3947	3947	13 (C) A program for approved vendors, designees,
3948	3948	14 eligible persons, and equity eligible contractors to
3949	3949	15 receive trainings, guidance, and other support from
3950	3950	16 the Agency or its designee regarding the equity
3951	3951	17 category outlined in item (vi) of subparagraph (K) of
3952	3952	18 paragraph (1) of subsection (c) and in meeting the
3953	3953	19 minimum equity standards of this subsection (c-10).
3954	3954	20 (D) A process for certifying equity eligible
3955	3955	21 contractors and equity eligible persons. The
3956	3956	22 certification process shall coordinate with the Energy
3957	3957	23 Workforce Equity Database set forth in subsection
3958	3958	24 (c-25).
3959	3959	25 (E) An application for waiver of the minimum
3960	3960	26 equity standards of this subsection, which the Agency
3961	3961
3962	3962
3963	3963
3964	3964
3965	3965
3966	3966	HB2810 - 109 - LRB104 08813 BDA 18868 b
3967	3967
3968	3968
3969	3969	HB2810- 110 -LRB104 08813 BDA 18868 b HB2810 - 110 - LRB104 08813 BDA 18868 b
3970	3970	HB2810 - 110 - LRB104 08813 BDA 18868 b
3971	3971	1 shall have the discretion to grant in rare
3972	3972	2 circumstances. The Agency may grant such a waiver
3973	3973	3 where the applicant provides evidence of significant
3974	3974	4 efforts toward meeting the minimum equity commitment,
3975	3975	5 including: use of the Energy Workforce Equity
3976	3976	6 Database; efforts to hire or contract with entities
3977	3977	7 that hire eligible persons; and efforts to establish
3978	3978	8 contracting relationships with eligible contractors.
3979	3979	9 The Agency shall support applicants in understanding
3980	3980	10 the Energy Workforce Equity Database and other
3981	3981	11 resources for pursuing compliance of the minimum
3982	3982	12 equity standards. Waivers shall be project-specific,
3983	3983	13 unless the Agency deems it necessary to grant a waiver
3984	3984	14 across a portfolio of projects, and in effect for no
3985	3985	15 longer than one year. Any waiver extension or
3986	3986	16 subsequent waiver request from an applicant shall be
3987	3987	17 subject to the requirements of this Section and shall
3988	3988	18 specify efforts made to reach compliance. When
3989	3989	19 considering whether to grant a waiver, and to what
3990	3990	20 extent, the Agency shall consider the degree to which
3991	3991	21 similarly situated applicants have been able to meet
3992	3992	22 these minimum equity commitments. For repeated waiver
3993	3993	23 requests for specific lack of eligible persons or
3994	3994	24 eligible contractors available, the Agency shall make
3995	3995	25 recommendations to target recruitment to add such
3996	3996	26 eligible persons or eligible contractors to the
3997	3997
3998	3998
3999	3999
4000	4000
4001	4001
4002	4002	HB2810 - 110 - LRB104 08813 BDA 18868 b
4003	4003
4004	4004
4005	4005	HB2810- 111 -LRB104 08813 BDA 18868 b HB2810 - 111 - LRB104 08813 BDA 18868 b
4006	4006	HB2810 - 111 - LRB104 08813 BDA 18868 b
4007	4007	1 database.
4008	4008	2 (5) The Agency shall collect information about work on
4009	4009	3 projects or portfolios of projects subject to these
4010	4010	4 minimum equity standards to ensure compliance with this
4011	4011	5 subsection (c-10). Reporting in furtherance of this
4012	4012	6 requirement may be combined with other annual reporting
4013	4013	7 requirements. Such reporting shall include proof of
4014	4014	8 certification of each equity eligible contractor or equity
4015	4015	9 eligible person during the applicable time period.
4016	4016	10 (6) The Agency shall keep confidential all information
4017	4017	11 and communication that provides private or personal
4018	4018	12 information.
4019	4019	13 (7) Modifications to the equity accountability system.
4020	4020	14 As part of the update of the long-term renewable resources
4021	4021	15 procurement plan to be initiated in 2023, or sooner if the
4022	4022	16 Agency deems necessary, the Agency shall determine the
4023	4023	17 extent to which the equity accountability system described
4024	4024	18 in this subsection (c-10) has advanced the goals of this
4025	4025	19 amendatory Act of the 102nd General Assembly, including
4026	4026	20 through the inclusion of equity eligible persons and
4027	4027	21 equity eligible contractors in renewable energy credit
4028	4028	22 projects. If the Agency finds that the equity
4029	4029	23 accountability system has failed to meet those goals to
4030	4030	24 its fullest potential, the Agency may revise the following
4031	4031	25 criteria for future Agency procurements: (A) the
4032	4032	26 percentage of project workforce, or other appropriate
4033	4033
4034	4034
4035	4035
4036	4036
4037	4037
4038	4038	HB2810 - 111 - LRB104 08813 BDA 18868 b
4039	4039
4040	4040
4041	4041	HB2810- 112 -LRB104 08813 BDA 18868 b HB2810 - 112 - LRB104 08813 BDA 18868 b
4042	4042	HB2810 - 112 - LRB104 08813 BDA 18868 b
4043	4043	1 workforce measure, certified as equity eligible persons or
4044	4044	2 equity eligible contractors; (B) definitions for equity
4045	4045	3 investment eligible persons and equity investment eligible
4046	4046	4 community; and (C) such other modifications necessary to
4047	4047	5 advance the goals of this amendatory Act of the 102nd
4048	4048	6 General Assembly effectively. Such revised criteria may
4049	4049	7 also establish distinct equity accountability systems for
4050	4050	8 different types of procurements or different regions of
4051	4051	9 the State if the Agency finds that doing so will further
4052	4052	10 the purposes of such programs. Revisions shall be
4053	4053	11 developed with stakeholder input, including from equity
4054	4054	12 eligible persons, equity eligible contractors, and
4055	4055	13 community-based organizations that work with such persons
4056	4056	14 and contractors.
4057	4057	15 (c-15) Racial discrimination elimination powers and
4058	4058	16 process.
4059	4059	17 (1) Purpose. It is the purpose of this subsection to
4060	4060	18 empower the Agency and other State actors to remedy racial
4061	4061	19 discrimination in Illinois' clean energy economy as
4062	4062	20 effectively and expediently as possible, including through
4063	4063	21 the use of race-conscious remedies, such as race-conscious
4064	4064	22 contracting and hiring goals, as consistent with State and
4065	4065	23 federal law.
4066	4066	24 (2) Racial disparity and discrimination review
4067	4067	25 process.
4068	4068	26 (A) Within one year after awarding contracts using
4069	4069
4070	4070
4071	4071
4072	4072
4073	4073
4074	4074	HB2810 - 112 - LRB104 08813 BDA 18868 b
4075	4075
4076	4076
4077	4077	HB2810- 113 -LRB104 08813 BDA 18868 b HB2810 - 113 - LRB104 08813 BDA 18868 b
4078	4078	HB2810 - 113 - LRB104 08813 BDA 18868 b
4079	4079	1 the equity actions processes established in this
4080	4080	2 Section, the Agency shall publish a report evaluating
4081	4081	3 the effectiveness of the equity actions point criteria
4082	4082	4 of this Section in increasing participation of equity
4083	4083	5 eligible persons and equity eligible contractors. The
4084	4084	6 report shall disaggregate participating workers and
4085	4085	7 contractors by race and ethnicity. The report shall be
4086	4086	8 forwarded to the Governor, the General Assembly, and
4087	4087	9 the Illinois Commerce Commission and be made available
4088	4088	10 to the public.
4089	4089	11 (B) As soon as is practicable thereafter, the
4090	4090	12 Agency, in consultation with the Department of
4091	4091	13 Commerce and Economic Opportunity, Department of
4092	4092	14 Labor, and other agencies that may be relevant, shall
4093	4093	15 commission and publish a disparity and availability
4094	4094	16 study that measures the presence and impact of
4095	4095	17 discrimination on minority businesses and workers in
4096	4096	18 Illinois' clean energy economy. The Agency may hire
4097	4097	19 consultants and experts to conduct the disparity and
4098	4098	20 availability study, with the retention of those
4099	4099	21 consultants and experts exempt from the requirements
4100	4100	22 of Section 20-10 of the Illinois Procurement Code. The
4101	4101	23 Illinois Power Agency shall forward a copy of its
4102	4102	24 findings and recommendations to the Governor, the
4103	4103	25 General Assembly, and the Illinois Commerce
4104	4104	26 Commission. If the disparity and availability study
4105	4105
4106	4106
4107	4107
4108	4108
4109	4109
4110	4110	HB2810 - 113 - LRB104 08813 BDA 18868 b
4111	4111
4112	4112
4113	4113	HB2810- 114 -LRB104 08813 BDA 18868 b HB2810 - 114 - LRB104 08813 BDA 18868 b
4114	4114	HB2810 - 114 - LRB104 08813 BDA 18868 b
4115	4115	1 establishes a strong basis in evidence that there is
4116	4116	2 discrimination in Illinois' clean energy economy, the
4117	4117	3 Agency, Department of Commerce and Economic
4118	4118	4 Opportunity, Department of Labor, Department of
4119	4119	5 Corrections, and other appropriate agencies shall take
4120	4120	6 appropriate remedial actions, including race-conscious
4121	4121	7 remedial actions as consistent with State and federal
4122	4122	8 law, to effectively remedy this discrimination. Such
4123	4123	9 remedies may include modification of the equity
4124	4124	10 accountability system as described in subsection
4125	4125	11 (c-10).
4126	4126	12 (c-20) Program data collection.
4127	4127	13 (1) Purpose. Data collection, data analysis, and
4128	4128	14 reporting are critical to ensure that the benefits of the
4129	4129	15 clean energy economy provided to Illinois residents and
4130	4130	16 businesses are equitably distributed across the State. The
4131	4131	17 Agency shall collect data from program applicants in order
4132	4132	18 to track and improve equitable distribution of benefits
4133	4133	19 across Illinois communities for all procurements the
4134	4134	20 Agency conducts. The Agency shall use this data to, among
4135	4135	21 other things, measure any potential impact of racial
4136	4136	22 discrimination on the distribution of benefits and provide
4137	4137	23 information necessary to correct any discrimination
4138	4138	24 through methods consistent with State and federal law.
4139	4139	25 (2) Agency collection of program data. The Agency
4140	4140	26 shall collect demographic and geographic data for each
4141	4141
4142	4142
4143	4143
4144	4144
4145	4145
4146	4146	HB2810 - 114 - LRB104 08813 BDA 18868 b
4147	4147
4148	4148
4149	4149	HB2810- 115 -LRB104 08813 BDA 18868 b HB2810 - 115 - LRB104 08813 BDA 18868 b
4150	4150	HB2810 - 115 - LRB104 08813 BDA 18868 b
4151	4151	1 entity awarded contracts under any Agency-administered
4152	4152	2 program.
4153	4153	3 (3) Required information to be collected. The Agency
4154	4154	4 shall collect the following information from applicants
4155	4155	5 and program participants where applicable:
4156	4156	6 (A) demographic information, including racial or
4157	4157	7 ethnic identity for real persons employed, contracted,
4158	4158	8 or subcontracted through the program and owners of
4159	4159	9 businesses or entities that apply to receive renewable
4160	4160	10 energy credits from the Agency;
4161	4161	11 (B) geographic location of the residency of real
4162	4162	12 persons employed, contracted, or subcontracted through
4163	4163	13 the program and geographic location of the
4164	4164	14 headquarters of the business or entity that applies to
4165	4165	15 receive renewable energy credits from the Agency; and
4166	4166	16 (C) any other information the Agency determines is
4167	4167	17 necessary for the purpose of achieving the purpose of
4168	4168	18 this subsection.
4169	4169	19 (4) Publication of collected information. The Agency
4170	4170	20 shall publish, at least annually, information on the
4171	4171	21 demographics of program participants on an aggregate
4172	4172	22 basis.
4173	4173	23 (5) Nothing in this subsection shall be interpreted to
4174	4174	24 limit the authority of the Agency, or other agency or
4175	4175	25 department of the State, to require or collect demographic
4176	4176	26 information from applicants of other State programs.
4177	4177
4178	4178
4179	4179
4180	4180
4181	4181
4182	4182	HB2810 - 115 - LRB104 08813 BDA 18868 b
4183	4183
4184	4184
4185	4185	HB2810- 116 -LRB104 08813 BDA 18868 b HB2810 - 116 - LRB104 08813 BDA 18868 b
4186	4186	HB2810 - 116 - LRB104 08813 BDA 18868 b
4187	4187	1 (c-25) Energy Workforce Equity Database.
4188	4188	2 (1) The Agency, in consultation with the Department of
4189	4189	3 Commerce and Economic Opportunity, shall create an Energy
4190	4190	4 Workforce Equity Database, and may contract with a third
4191	4191	5 party to do so ("database program administrator"). If the
4192	4192	6 Department decides to contract with a third party, that
4193	4193	7 third party shall be exempt from the requirements of
4194	4194	8 Section 20-10 of the Illinois Procurement Code. The Energy
4195	4195	9 Workforce Equity Database shall be a searchable database
4196	4196	10 of suppliers, vendors, and subcontractors for clean energy
4197	4197	11 industries that is:
4198	4198	12 (A) publicly accessible;
4199	4199	13 (B) easy for people to find and use;
4200	4200	14 (C) organized by company specialty or field;
4201	4201	15 (D) region-specific; and
4202	4202	16 (E) populated with information including, but not
4203	4203	17 limited to, contacts for suppliers, vendors, or
4204	4204	18 subcontractors who are minority and women-owned
4205	4205	19 business enterprise certified or who participate or
4206	4206	20 have participated in any of the programs described in
4207	4207	21 this Act.
4208	4208	22 (2) The Agency shall create an easily accessible,
4209	4209	23 public facing online tool using the database information
4210	4210	24 that includes, at a minimum, the following:
4211	4211	25 (A) a map of environmental justice and equity
4212	4212	26 investment eligible communities;
4213	4213
4214	4214
4215	4215
4216	4216
4217	4217
4218	4218	HB2810 - 116 - LRB104 08813 BDA 18868 b
4219	4219
4220	4220
4221	4221	HB2810- 117 -LRB104 08813 BDA 18868 b HB2810 - 117 - LRB104 08813 BDA 18868 b
4222	4222	HB2810 - 117 - LRB104 08813 BDA 18868 b
4223	4223	1 (B) job postings and recruiting opportunities;
4224	4224	2 (C) a means by which recruiting clean energy
4225	4225	3 companies can find and interact with current or former
4226	4226	4 participants of clean energy workforce training
4227	4227	5 programs;
4228	4228	6 (D) information on workforce training service
4229	4229	7 providers and training opportunities available to
4230	4230	8 prospective workers;
4231	4231	9 (E) renewable energy company diversity reporting;
4232	4232	10 (F) a list of equity eligible contractors with
4233	4233	11 their contact information, types of work performed,
4234	4234	12 and locations worked in;
4235	4235	13 (G) reporting on outcomes of the programs
4236	4236	14 described in the workforce programs of the Energy
4237	4237	15 Transition Act, including information such as, but not
4238	4238	16 limited to, retention rate, graduation rate, and
4239	4239	17 placement rates of trainees; and
4240	4240	18 (H) information about the Jobs and Environmental
4241	4241	19 Justice Grant Program, the Clean Energy Jobs and
4242	4242	20 Justice Fund, and other sources of capital.
4243	4243	21 (3) The Agency shall ensure the database is regularly
4244	4244	22 updated to ensure information is current and shall
4245	4245	23 coordinate with the Department of Commerce and Economic
4246	4246	24 Opportunity to ensure that it includes information on
4247	4247	25 individuals and entities that are or have participated in
4248	4248	26 the Clean Jobs Workforce Network Program, Clean Energy
4249	4249
4250	4250
4251	4251
4252	4252
4253	4253
4254	4254	HB2810 - 117 - LRB104 08813 BDA 18868 b
4255	4255
4256	4256
4257	4257	HB2810- 118 -LRB104 08813 BDA 18868 b HB2810 - 118 - LRB104 08813 BDA 18868 b
4258	4258	HB2810 - 118 - LRB104 08813 BDA 18868 b
4259	4259	1 Contractor Incubator Program, Returning Residents Clean
4260	4260	2 Jobs Training Program, or Clean Energy Primes Contractor
4261	4261	3 Accelerator Program.
4262	4262	4 (c-30) Enforcement of minimum equity standards. All
4263	4263	5 entities seeking renewable energy credits must submit an
4264	4264	6 annual report to demonstrate compliance with each of the
4265	4265	7 equity commitments required under subsection (c-10). If the
4266	4266	8 Agency concludes the entity has not met or maintained its
4267	4267	9 minimum equity standards required under the applicable
4268	4268	10 subparagraphs under subsection (c-10), the Agency shall deny
4269	4269	11 the entity's ability to participate in procurement programs in
4270	4270	12 subsection (c), including by withholding approved vendor or
4271	4271	13 designee status. The Agency may require the entity to enter
4272	4272	14 into a corrective action plan. An entity that is not
4273	4273	15 recertified for failing to meet required equity actions in
4274	4274	16 subparagraph (c-10) may reapply once they have a corrective
4275	4275	17 action plan and achieve compliance with the minimum equity
4276	4276	18 standards.
4277	4277	19 (d) Clean coal portfolio standard.
4278	4278	20 (1) The procurement plans shall include electricity
4279	4279	21 generated using clean coal. Each utility shall enter into
4280	4280	22 one or more sourcing agreements with the initial clean
4281	4281	23 coal facility, as provided in paragraph (3) of this
4282	4282	24 subsection (d), covering electricity generated by the
4283	4283	25 initial clean coal facility representing at least 5% of
4284	4284	26 each utility's total supply to serve the load of eligible
4285	4285
4286	4286
4287	4287
4288	4288
4289	4289
4290	4290	HB2810 - 118 - LRB104 08813 BDA 18868 b
4291	4291
4292	4292
4293	4293	HB2810- 119 -LRB104 08813 BDA 18868 b HB2810 - 119 - LRB104 08813 BDA 18868 b
4294	4294	HB2810 - 119 - LRB104 08813 BDA 18868 b
4295	4295	1 retail customers in 2015 and each year thereafter, as
4296	4296	2 described in paragraph (3) of this subsection (d), subject
4297	4297	3 to the limits specified in paragraph (2) of this
4298	4298	4 subsection (d). It is the goal of the State that by January
4299	4299	5 1, 2025, 25% of the electricity used in the State shall be
4300	4300	6 generated by cost-effective clean coal facilities. For
4301	4301	7 purposes of this subsection (d), "cost-effective" means
4302	4302	8 that the expenditures pursuant to such sourcing agreements
4303	4303	9 do not cause the limit stated in paragraph (2) of this
4304	4304	10 subsection (d) to be exceeded and do not exceed cost-based
4305	4305	11 benchmarks, which shall be developed to assess all
4306	4306	12 expenditures pursuant to such sourcing agreements covering
4307	4307	13 electricity generated by clean coal facilities, other than
4308	4308	14 the initial clean coal facility, by the procurement
4309	4309	15 administrator, in consultation with the Commission staff,
4310	4310	16 Agency staff, and the procurement monitor and shall be
4311	4311	17 subject to Commission review and approval.
4312	4312	18 A utility party to a sourcing agreement shall
4313	4313	19 immediately retire any emission credits that it receives
4314	4314	20 in connection with the electricity covered by such
4315	4315	21 agreement.
4316	4316	22 Utilities shall maintain adequate records documenting
4317	4317	23 the purchases under the sourcing agreement to comply with
4318	4318	24 this subsection (d) and shall file an accounting with the
4319	4319	25 load forecast that must be filed with the Agency by July 15
4320	4320	26 of each year, in accordance with subsection (d) of Section
4321	4321
4322	4322
4323	4323
4324	4324
4325	4325
4326	4326	HB2810 - 119 - LRB104 08813 BDA 18868 b
4327	4327
4328	4328
4329	4329	HB2810- 120 -LRB104 08813 BDA 18868 b HB2810 - 120 - LRB104 08813 BDA 18868 b
4330	4330	HB2810 - 120 - LRB104 08813 BDA 18868 b
4331	4331	1 16-111.5 of the Public Utilities Act.
4332	4332	2 A utility shall be deemed to have complied with the
4333	4333	3 clean coal portfolio standard specified in this subsection
4334	4334	4 (d) if the utility enters into a sourcing agreement as
4335	4335	5 required by this subsection (d).
4336	4336	6 (2) For purposes of this subsection (d), the required
4337	4337	7 execution of sourcing agreements with the initial clean
4338	4338	8 coal facility for a particular year shall be measured as a
4339	4339	9 percentage of the actual amount of electricity
4340	4340	10 (megawatt-hours) supplied by the electric utility to
4341	4341	11 eligible retail customers in the planning year ending
4342	4342	12 immediately prior to the agreement's execution. For
4343	4343	13 purposes of this subsection (d), the amount paid per
4344	4344	14 kilowatthour means the total amount paid for electric
4345	4345	15 service expressed on a per kilowatthour basis. For
4346	4346	16 purposes of this subsection (d), the total amount paid for
4347	4347	17 electric service includes without limitation amounts paid
4348	4348	18 for supply, transmission, distribution, surcharges and
4349	4349	19 add-on taxes.
4350	4350	20 Notwithstanding the requirements of this subsection
4351	4351	21 (d), the total amount paid under sourcing agreements with
4352	4352	22 clean coal facilities pursuant to the procurement plan for
4353	4353	23 any given year shall be reduced by an amount necessary to
4354	4354	24 limit the annual estimated average net increase due to the
4355	4355	25 costs of these resources included in the amounts paid by
4356	4356	26 eligible retail customers in connection with electric
4357	4357
4358	4358
4359	4359
4360	4360
4361	4361
4362	4362	HB2810 - 120 - LRB104 08813 BDA 18868 b
4363	4363
4364	4364
4365	4365	HB2810- 121 -LRB104 08813 BDA 18868 b HB2810 - 121 - LRB104 08813 BDA 18868 b
4366	4366	HB2810 - 121 - LRB104 08813 BDA 18868 b
4367	4367	1 service to:
4368	4368	2 (A) in 2010, no more than 0.5% of the amount paid
4369	4369	3 per kilowatthour by those customers during the year
4370	4370	4 ending May 31, 2009;
4371	4371	5 (B) in 2011, the greater of an additional 0.5% of
4372	4372	6 the amount paid per kilowatthour by those customers
4373	4373	7 during the year ending May 31, 2010 or 1% of the amount
4374	4374	8 paid per kilowatthour by those customers during the
4375	4375	9 year ending May 31, 2009;
4376	4376	10 (C) in 2012, the greater of an additional 0.5% of
4377	4377	11 the amount paid per kilowatthour by those customers
4378	4378	12 during the year ending May 31, 2011 or 1.5% of the
4379	4379	13 amount paid per kilowatthour by those customers during
4380	4380	14 the year ending May 31, 2009;
4381	4381	15 (D) in 2013, the greater of an additional 0.5% of
4382	4382	16 the amount paid per kilowatthour by those customers
4383	4383	17 during the year ending May 31, 2012 or 2% of the amount
4384	4384	18 paid per kilowatthour by those customers during the
4385	4385	19 year ending May 31, 2009; and
4386	4386	20 (E) thereafter, the total amount paid under
4387	4387	21 sourcing agreements with clean coal facilities
4388	4388	22 pursuant to the procurement plan for any single year
4389	4389	23 shall be reduced by an amount necessary to limit the
4390	4390	24 estimated average net increase due to the cost of
4391	4391	25 these resources included in the amounts paid by
4392	4392	26 eligible retail customers in connection with electric
4393	4393
4394	4394
4395	4395
4396	4396
4397	4397
4398	4398	HB2810 - 121 - LRB104 08813 BDA 18868 b
4399	4399
4400	4400
4401	4401	HB2810- 122 -LRB104 08813 BDA 18868 b HB2810 - 122 - LRB104 08813 BDA 18868 b
4402	4402	HB2810 - 122 - LRB104 08813 BDA 18868 b
4403	4403	1 service to no more than the greater of (i) 2.015% of
4404	4404	2 the amount paid per kilowatthour by those customers
4405	4405	3 during the year ending May 31, 2009 or (ii) the
4406	4406	4 incremental amount per kilowatthour paid for these
4407	4407	5 resources in 2013. These requirements may be altered
4408	4408	6 only as provided by statute.
4409	4409	7 No later than June 30, 2015, the Commission shall
4410	4410	8 review the limitation on the total amount paid under
4411	4411	9 sourcing agreements, if any, with clean coal facilities
4412	4412	10 pursuant to this subsection (d) and report to the General
4413	4413	11 Assembly its findings as to whether that limitation unduly
4414	4414	12 constrains the amount of electricity generated by
4415	4415	13 cost-effective clean coal facilities that is covered by
4416	4416	14 sourcing agreements.
4417	4417	15 (3) Initial clean coal facility. In order to promote
4418	4418	16 development of clean coal facilities in Illinois, each
4419	4419	17 electric utility subject to this Section shall execute a
4420	4420	18 sourcing agreement to source electricity from a proposed
4421	4421	19 clean coal facility in Illinois (the "initial clean coal
4422	4422	20 facility") that will have a nameplate capacity of at least
4423	4423	21 500 MW when commercial operation commences, that has a
4424	4424	22 final Clean Air Act permit on June 1, 2009 (the effective
4425	4425	23 date of Public Act 95-1027), and that will meet the
4426	4426	24 definition of clean coal facility in Section 1-10 of this
4427	4427	25 Act when commercial operation commences. The sourcing
4428	4428	26 agreements with this initial clean coal facility shall be
4429	4429
4430	4430
4431	4431
4432	4432
4433	4433
4434	4434	HB2810 - 122 - LRB104 08813 BDA 18868 b
4435	4435
4436	4436
4437	4437	HB2810- 123 -LRB104 08813 BDA 18868 b HB2810 - 123 - LRB104 08813 BDA 18868 b
4438	4438	HB2810 - 123 - LRB104 08813 BDA 18868 b
4439	4439	1 subject to both approval of the initial clean coal
4440	4440	2 facility by the General Assembly and satisfaction of the
4441	4441	3 requirements of paragraph (4) of this subsection (d) and
4442	4442	4 shall be executed within 90 days after any such approval
4443	4443	5 by the General Assembly. The Agency and the Commission
4444	4444	6 shall have authority to inspect all books and records
4445	4445	7 associated with the initial clean coal facility during the
4446	4446	8 term of such a sourcing agreement. A utility's sourcing
4447	4447	9 agreement for electricity produced by the initial clean
4448	4448	10 coal facility shall include:
4449	4449	11 (A) a formula contractual price (the "contract
4450	4450	12 price") approved pursuant to paragraph (4) of this
4451	4451	13 subsection (d), which shall:
4452	4452	14 (i) be determined using a cost of service
4453	4453	15 methodology employing either a level or deferred
4454	4454	16 capital recovery component, based on a capital
4455	4455	17 structure consisting of 45% equity and 55% debt,
4456	4456	18 and a return on equity as may be approved by the
4457	4457	19 Federal Energy Regulatory Commission, which in any
4458	4458	20 case may not exceed the lower of 11.5% or the rate
4459	4459	21 of return approved by the General Assembly
4460	4460	22 pursuant to paragraph (4) of this subsection (d);
4461	4461	23 and
4462	4462	24 (ii) provide that all miscellaneous net
4463	4463	25 revenue, including but not limited to net revenue
4464	4464	26 from the sale of emission allowances, if any,
4465	4465
4466	4466
4467	4467
4468	4468
4469	4469
4470	4470	HB2810 - 123 - LRB104 08813 BDA 18868 b
4471	4471
4472	4472
4473	4473	HB2810- 124 -LRB104 08813 BDA 18868 b HB2810 - 124 - LRB104 08813 BDA 18868 b
4474	4474	HB2810 - 124 - LRB104 08813 BDA 18868 b
4475	4475	1 substitute natural gas, if any, grants or other
4476	4476	2 support provided by the State of Illinois or the
4477	4477	3 United States Government, firm transmission
4478	4478	4 rights, if any, by-products produced by the
4479	4479	5 facility, energy or capacity derived from the
4480	4480	6 facility and not covered by a sourcing agreement
4481	4481	7 pursuant to paragraph (3) of this subsection (d)
4482	4482	8 or item (5) of subsection (d) of Section 16-115 of
4483	4483	9 the Public Utilities Act, whether generated from
4484	4484	10 the synthesis gas derived from coal, from SNG, or
4485	4485	11 from natural gas, shall be credited against the
4486	4486	12 revenue requirement for this initial clean coal
4487	4487	13 facility;
4488	4488	14 (B) power purchase provisions, which shall:
4489	4489	15 (i) provide that the utility party to such
4490	4490	16 sourcing agreement shall pay the contract price
4491	4491	17 for electricity delivered under such sourcing
4492	4492	18 agreement;
4493	4493	19 (ii) require delivery of electricity to the
4494	4494	20 regional transmission organization market of the
4495	4495	21 utility that is party to such sourcing agreement;
4496	4496	22 (iii) require the utility party to such
4497	4497	23 sourcing agreement to buy from the initial clean
4498	4498	24 coal facility in each hour an amount of energy
4499	4499	25 equal to all clean coal energy made available from
4500	4500	26 the initial clean coal facility during such hour
4501	4501
4502	4502
4503	4503
4504	4504
4505	4505
4506	4506	HB2810 - 124 - LRB104 08813 BDA 18868 b
4507	4507
4508	4508
4509	4509	HB2810- 125 -LRB104 08813 BDA 18868 b HB2810 - 125 - LRB104 08813 BDA 18868 b
4510	4510	HB2810 - 125 - LRB104 08813 BDA 18868 b
4511	4511	1 times a fraction, the numerator of which is such
4512	4512	2 utility's retail market sales of electricity
4513	4513	3 (expressed in kilowatthours sold) in the State
4514	4514	4 during the prior calendar month and the
4515	4515	5 denominator of which is the total retail market
4516	4516	6 sales of electricity (expressed in kilowatthours
4517	4517	7 sold) in the State by utilities during such prior
4518	4518	8 month and the sales of electricity (expressed in
4519	4519	9 kilowatthours sold) in the State by alternative
4520	4520	10 retail electric suppliers during such prior month
4521	4521	11 that are subject to the requirements of this
4522	4522	12 subsection (d) and paragraph (5) of subsection (d)
4523	4523	13 of Section 16-115 of the Public Utilities Act,
4524	4524	14 provided that the amount purchased by the utility
4525	4525	15 in any year will be limited by paragraph (2) of
4526	4526	16 this subsection (d); and
4527	4527	17 (iv) be considered pre-existing contracts in
4528	4528	18 such utility's procurement plans for eligible
4529	4529	19 retail customers;
4530	4530	20 (C) contract for differences provisions, which
4531	4531	21 shall:
4532	4532	22 (i) require the utility party to such sourcing
4533	4533	23 agreement to contract with the initial clean coal
4534	4534	24 facility in each hour with respect to an amount of
4535	4535	25 energy equal to all clean coal energy made
4536	4536	26 available from the initial clean coal facility
4537	4537
4538	4538
4539	4539
4540	4540
4541	4541
4542	4542	HB2810 - 125 - LRB104 08813 BDA 18868 b
4543	4543
4544	4544
4545	4545	HB2810- 126 -LRB104 08813 BDA 18868 b HB2810 - 126 - LRB104 08813 BDA 18868 b
4546	4546	HB2810 - 126 - LRB104 08813 BDA 18868 b
4547	4547	1 during such hour times a fraction, the numerator
4548	4548	2 of which is such utility's retail market sales of
4549	4549	3 electricity (expressed in kilowatthours sold) in
4550	4550	4 the utility's service territory in the State
4551	4551	5 during the prior calendar month and the
4552	4552	6 denominator of which is the total retail market
4553	4553	7 sales of electricity (expressed in kilowatthours
4554	4554	8 sold) in the State by utilities during such prior
4555	4555	9 month and the sales of electricity (expressed in
4556	4556	10 kilowatthours sold) in the State by alternative
4557	4557	11 retail electric suppliers during such prior month
4558	4558	12 that are subject to the requirements of this
4559	4559	13 subsection (d) and paragraph (5) of subsection (d)
4560	4560	14 of Section 16-115 of the Public Utilities Act,
4561	4561	15 provided that the amount paid by the utility in
4562	4562	16 any year will be limited by paragraph (2) of this
4563	4563	17 subsection (d);
4564	4564	18 (ii) provide that the utility's payment
4565	4565	19 obligation in respect of the quantity of
4566	4566	20 electricity determined pursuant to the preceding
4567	4567	21 clause (i) shall be limited to an amount equal to
4568	4568	22 (1) the difference between the contract price
4569	4569	23 determined pursuant to subparagraph (A) of
4570	4570	24 paragraph (3) of this subsection (d) and the
4571	4571	25 day-ahead price for electricity delivered to the
4572	4572	26 regional transmission organization market of the
4573	4573
4574	4574
4575	4575
4576	4576
4577	4577
4578	4578	HB2810 - 126 - LRB104 08813 BDA 18868 b
4579	4579
4580	4580
4581	4581	HB2810- 127 -LRB104 08813 BDA 18868 b HB2810 - 127 - LRB104 08813 BDA 18868 b
4582	4582	HB2810 - 127 - LRB104 08813 BDA 18868 b
4583	4583	1 utility that is party to such sourcing agreement
4584	4584	2 (or any successor delivery point at which such
4585	4585	3 utility's supply obligations are financially
4586	4586	4 settled on an hourly basis) (the "reference
4587	4587	5 price") on the day preceding the day on which the
4588	4588	6 electricity is delivered to the initial clean coal
4589	4589	7 facility busbar, multiplied by (2) the quantity of
4590	4590	8 electricity determined pursuant to the preceding
4591	4591	9 clause (i); and
4592	4592	10 (iii) not require the utility to take physical
4593	4593	11 delivery of the electricity produced by the
4594	4594	12 facility;
4595	4595	13 (D) general provisions, which shall:
4596	4596	14 (i) specify a term of no more than 30 years,
4597	4597	15 commencing on the commercial operation date of the
4598	4598	16 facility;
4599	4599	17 (ii) provide that utilities shall maintain
4600	4600	18 adequate records documenting purchases under the
4601	4601	19 sourcing agreements entered into to comply with
4602	4602	20 this subsection (d) and shall file an accounting
4603	4603	21 with the load forecast that must be filed with the
4604	4604	22 Agency by July 15 of each year, in accordance with
4605	4605	23 subsection (d) of Section 16-111.5 of the Public
4606	4606	24 Utilities Act;
4607	4607	25 (iii) provide that all costs associated with
4608	4608	26 the initial clean coal facility will be
4609	4609
4610	4610
4611	4611
4612	4612
4613	4613
4614	4614	HB2810 - 127 - LRB104 08813 BDA 18868 b
4615	4615
4616	4616
4617	4617	HB2810- 128 -LRB104 08813 BDA 18868 b HB2810 - 128 - LRB104 08813 BDA 18868 b
4618	4618	HB2810 - 128 - LRB104 08813 BDA 18868 b
4619	4619	1 periodically reported to the Federal Energy
4620	4620	2 Regulatory Commission and to purchasers in
4621	4621	3 accordance with applicable laws governing
4622	4622	4 cost-based wholesale power contracts;
4623	4623	5 (iv) permit the Illinois Power Agency to
4624	4624	6 assume ownership of the initial clean coal
4625	4625	7 facility, without monetary consideration and
4626	4626	8 otherwise on reasonable terms acceptable to the
4627	4627	9 Agency, if the Agency so requests no less than 3
4628	4628	10 years prior to the end of the stated contract
4629	4629	11 term;
4630	4630	12 (v) require the owner of the initial clean
4631	4631	13 coal facility to provide documentation to the
4632	4632	14 Commission each year, starting in the facility's
4633	4633	15 first year of commercial operation, accurately
4634	4634	16 reporting the quantity of carbon emissions from
4635	4635	17 the facility that have been captured and
4636	4636	18 sequestered and report any quantities of carbon
4637	4637	19 released from the site or sites at which carbon
4638	4638	20 emissions were sequestered in prior years, based
4639	4639	21 on continuous monitoring of such sites. If, in any
4640	4640	22 year after the first year of commercial operation,
4641	4641	23 the owner of the facility fails to demonstrate
4642	4642	24 that the initial clean coal facility captured and
4643	4643	25 sequestered at least 50% of the total carbon
4644	4644	26 emissions that the facility would otherwise emit
4645	4645
4646	4646
4647	4647
4648	4648
4649	4649
4650	4650	HB2810 - 128 - LRB104 08813 BDA 18868 b
4651	4651
4652	4652
4653	4653	HB2810- 129 -LRB104 08813 BDA 18868 b HB2810 - 129 - LRB104 08813 BDA 18868 b
4654	4654	HB2810 - 129 - LRB104 08813 BDA 18868 b
4655	4655	1 or that sequestration of emissions from prior
4656	4656	2 years has failed, resulting in the release of
4657	4657	3 carbon dioxide into the atmosphere, the owner of
4658	4658	4 the facility must offset excess emissions. Any
4659	4659	5 such carbon offsets must be permanent, additional,
4660	4660	6 verifiable, real, located within the State of
4661	4661	7 Illinois, and legally and practicably enforceable.
4662	4662	8 The cost of such offsets for the facility that are
4663	4663	9 not recoverable shall not exceed $15 million in
4664	4664	10 any given year. No costs of any such purchases of
4665	4665	11 carbon offsets may be recovered from a utility or
4666	4666	12 its customers. All carbon offsets purchased for
4667	4667	13 this purpose and any carbon emission credits
4668	4668	14 associated with sequestration of carbon from the
4669	4669	15 facility must be permanently retired. The initial
4670	4670	16 clean coal facility shall not forfeit its
4671	4671	17 designation as a clean coal facility if the
4672	4672	18 facility fails to fully comply with the applicable
4673	4673	19 carbon sequestration requirements in any given
4674	4674	20 year, provided the requisite offsets are
4675	4675	21 purchased. However, the Attorney General, on
4676	4676	22 behalf of the People of the State of Illinois, may
4677	4677	23 specifically enforce the facility's sequestration
4678	4678	24 requirement and the other terms of this contract
4679	4679	25 provision. Compliance with the sequestration
4680	4680	26 requirements and offset purchase requirements
4681	4681
4682	4682
4683	4683
4684	4684
4685	4685
4686	4686	HB2810 - 129 - LRB104 08813 BDA 18868 b
4687	4687
4688	4688
4689	4689	HB2810- 130 -LRB104 08813 BDA 18868 b HB2810 - 130 - LRB104 08813 BDA 18868 b
4690	4690	HB2810 - 130 - LRB104 08813 BDA 18868 b
4691	4691	1 specified in paragraph (3) of this subsection (d)
4692	4692	2 shall be reviewed annually by an independent
4693	4693	3 expert retained by the owner of the initial clean
4694	4694	4 coal facility, with the advance written approval
4695	4695	5 of the Attorney General. The Commission may, in
4696	4696	6 the course of the review specified in item (vii),
4697	4697	7 reduce the allowable return on equity for the
4698	4698	8 facility if the facility willfully fails to comply
4699	4699	9 with the carbon capture and sequestration
4700	4700	10 requirements set forth in this item (v);
4701	4701	11 (vi) include limits on, and accordingly
4702	4702	12 provide for modification of, the amount the
4703	4703	13 utility is required to source under the sourcing
4704	4704	14 agreement consistent with paragraph (2) of this
4705	4705	15 subsection (d);
4706	4706	16 (vii) require Commission review: (1) to
4707	4707	17 determine the justness, reasonableness, and
4708	4708	18 prudence of the inputs to the formula referenced
4709	4709	19 in subparagraphs (A)(i) through (A)(iii) of
4710	4710	20 paragraph (3) of this subsection (d), prior to an
4711	4711	21 adjustment in those inputs including, without
4712	4712	22 limitation, the capital structure and return on
4713	4713	23 equity, fuel costs, and other operations and
4714	4714	24 maintenance costs and (2) to approve the costs to
4715	4715	25 be passed through to customers under the sourcing
4716	4716	26 agreement by which the utility satisfies its
4717	4717
4718	4718
4719	4719
4720	4720
4721	4721
4722	4722	HB2810 - 130 - LRB104 08813 BDA 18868 b
4723	4723
4724	4724
4725	4725	HB2810- 131 -LRB104 08813 BDA 18868 b HB2810 - 131 - LRB104 08813 BDA 18868 b
4726	4726	HB2810 - 131 - LRB104 08813 BDA 18868 b
4727	4727	1 statutory obligations. Commission review shall
4728	4728	2 occur no less than every 3 years, regardless of
4729	4729	3 whether any adjustments have been proposed, and
4730	4730	4 shall be completed within 9 months;
4731	4731	5 (viii) limit the utility's obligation to such
4732	4732	6 amount as the utility is allowed to recover
4733	4733	7 through tariffs filed with the Commission,
4734	4734	8 provided that neither the clean coal facility nor
4735	4735	9 the utility waives any right to assert federal
4736	4736	10 pre-emption or any other argument in response to a
4737	4737	11 purported disallowance of recovery costs;
4738	4738	12 (ix) limit the utility's or alternative retail
4739	4739	13 electric supplier's obligation to incur any
4740	4740	14 liability until such time as the facility is in
4741	4741	15 commercial operation and generating power and
4742	4742	16 energy and such power and energy is being
4743	4743	17 delivered to the facility busbar;
4744	4744	18 (x) provide that the owner or owners of the
4745	4745	19 initial clean coal facility, which is the
4746	4746	20 counterparty to such sourcing agreement, shall
4747	4747	21 have the right from time to time to elect whether
4748	4748	22 the obligations of the utility party thereto shall
4749	4749	23 be governed by the power purchase provisions or
4750	4750	24 the contract for differences provisions;
4751	4751	25 (xi) append documentation showing that the
4752	4752	26 formula rate and contract, insofar as they relate
4753	4753
4754	4754
4755	4755
4756	4756
4757	4757
4758	4758	HB2810 - 131 - LRB104 08813 BDA 18868 b
4759	4759
4760	4760
4761	4761	HB2810- 132 -LRB104 08813 BDA 18868 b HB2810 - 132 - LRB104 08813 BDA 18868 b
4762	4762	HB2810 - 132 - LRB104 08813 BDA 18868 b
4763	4763	1 to the power purchase provisions, have been
4764	4764	2 approved by the Federal Energy Regulatory
4765	4765	3 Commission pursuant to Section 205 of the Federal
4766	4766	4 Power Act;
4767	4767	5 (xii) provide that any changes to the terms of
4768	4768	6 the contract, insofar as such changes relate to
4769	4769	7 the power purchase provisions, are subject to
4770	4770	8 review under the public interest standard applied
4771	4771	9 by the Federal Energy Regulatory Commission
4772	4772	10 pursuant to Sections 205 and 206 of the Federal
4773	4773	11 Power Act; and
4774	4774	12 (xiii) conform with customary lender
4775	4775	13 requirements in power purchase agreements used as
4776	4776	14 the basis for financing non-utility generators.
4777	4777	15 (4) Effective date of sourcing agreements with the
4778	4778	16 initial clean coal facility. Any proposed sourcing
4779	4779	17 agreement with the initial clean coal facility shall not
4780	4780	18 become effective unless the following reports are prepared
4781	4781	19 and submitted and authorizations and approvals obtained:
4782	4782	20 (i) Facility cost report. The owner of the initial
4783	4783	21 clean coal facility shall submit to the Commission,
4784	4784	22 the Agency, and the General Assembly a front-end
4785	4785	23 engineering and design study, a facility cost report,
4786	4786	24 method of financing (including but not limited to
4787	4787	25 structure and associated costs), and an operating and
4788	4788	26 maintenance cost quote for the facility (collectively
4789	4789
4790	4790
4791	4791
4792	4792
4793	4793
4794	4794	HB2810 - 132 - LRB104 08813 BDA 18868 b
4795	4795
4796	4796
4797	4797	HB2810- 133 -LRB104 08813 BDA 18868 b HB2810 - 133 - LRB104 08813 BDA 18868 b
4798	4798	HB2810 - 133 - LRB104 08813 BDA 18868 b
4799	4799	1 "facility cost report"), which shall be prepared in
4800	4800	2 accordance with the requirements of this paragraph (4)
4801	4801	3 of subsection (d) of this Section, and shall provide
4802	4802	4 the Commission and the Agency access to the work
4803	4803	5 papers, relied upon documents, and any other backup
4804	4804	6 documentation related to the facility cost report.
4805	4805	7 (ii) Commission report. Within 6 months following
4806	4806	8 receipt of the facility cost report, the Commission,
4807	4807	9 in consultation with the Agency, shall submit a report
4808	4808	10 to the General Assembly setting forth its analysis of
4809	4809	11 the facility cost report. Such report shall include,
4810	4810	12 but not be limited to, a comparison of the costs
4811	4811	13 associated with electricity generated by the initial
4812	4812	14 clean coal facility to the costs associated with
4813	4813	15 electricity generated by other types of generation
4814	4814	16 facilities, an analysis of the rate impacts on
4815	4815	17 residential and small business customers over the life
4816	4816	18 of the sourcing agreements, and an analysis of the
4817	4817	19 likelihood that the initial clean coal facility will
4818	4818	20 commence commercial operation by and be delivering
4819	4819	21 power to the facility's busbar by 2016. To assist in
4820	4820	22 the preparation of its report, the Commission, in
4821	4821	23 consultation with the Agency, may hire one or more
4822	4822	24 experts or consultants, the costs of which shall be
4823	4823	25 paid for by the owner of the initial clean coal
4824	4824	26 facility. The Commission and Agency may begin the
4825	4825
4826	4826
4827	4827
4828	4828
4829	4829
4830	4830	HB2810 - 133 - LRB104 08813 BDA 18868 b
4831	4831
4832	4832
4833	4833	HB2810- 134 -LRB104 08813 BDA 18868 b HB2810 - 134 - LRB104 08813 BDA 18868 b
4834	4834	HB2810 - 134 - LRB104 08813 BDA 18868 b
4835	4835	1 process of selecting such experts or consultants prior
4836	4836	2 to receipt of the facility cost report.
4837	4837	3 (iii) General Assembly approval. The proposed
4838	4838	4 sourcing agreements shall not take effect unless,
4839	4839	5 based on the facility cost report and the Commission's
4840	4840	6 report, the General Assembly enacts authorizing
4841	4841	7 legislation approving (A) the projected price, stated
4842	4842	8 in cents per kilowatthour, to be charged for
4843	4843	9 electricity generated by the initial clean coal
4844	4844	10 facility, (B) the projected impact on residential and
4845	4845	11 small business customers' bills over the life of the
4846	4846	12 sourcing agreements, and (C) the maximum allowable
4847	4847	13 return on equity for the project; and
4848	4848	14 (iv) Commission review. If the General Assembly
4849	4849	15 enacts authorizing legislation pursuant to
4850	4850	16 subparagraph (iii) approving a sourcing agreement, the
4851	4851	17 Commission shall, within 90 days of such enactment,
4852	4852	18 complete a review of such sourcing agreement. During
4853	4853	19 such time period, the Commission shall implement any
4854	4854	20 directive of the General Assembly, resolve any
4855	4855	21 disputes between the parties to the sourcing agreement
4856	4856	22 concerning the terms of such agreement, approve the
4857	4857	23 form of such agreement, and issue an order finding
4858	4858	24 that the sourcing agreement is prudent and reasonable.
4859	4859	25 The facility cost report shall be prepared as follows:
4860	4860	26 (A) The facility cost report shall be prepared by
4861	4861
4862	4862
4863	4863
4864	4864
4865	4865
4866	4866	HB2810 - 134 - LRB104 08813 BDA 18868 b
4867	4867
4868	4868
4869	4869	HB2810- 135 -LRB104 08813 BDA 18868 b HB2810 - 135 - LRB104 08813 BDA 18868 b
4870	4870	HB2810 - 135 - LRB104 08813 BDA 18868 b
4871	4871	1 duly licensed engineering and construction firms
4872	4872	2 detailing the estimated capital costs payable to one
4873	4873	3 or more contractors or suppliers for the engineering,
4874	4874	4 procurement and construction of the components
4875	4875	5 comprising the initial clean coal facility and the
4876	4876	6 estimated costs of operation and maintenance of the
4877	4877	7 facility. The facility cost report shall include:
4878	4878	8 (i) an estimate of the capital cost of the
4879	4879	9 core plant based on one or more front end
4880	4880	10 engineering and design studies for the
4881	4881	11 gasification island and related facilities. The
4882	4882	12 core plant shall include all civil, structural,
4883	4883	13 mechanical, electrical, control, and safety
4884	4884	14 systems.
4885	4885	15 (ii) an estimate of the capital cost of the
4886	4886	16 balance of the plant, including any capital costs
4887	4887	17 associated with sequestration of carbon dioxide
4888	4888	18 emissions and all interconnects and interfaces
4889	4889	19 required to operate the facility, such as
4890	4890	20 transmission of electricity, construction or
4891	4891	21 backfeed power supply, pipelines to transport
4892	4892	22 substitute natural gas or carbon dioxide, potable
4893	4893	23 water supply, natural gas supply, water supply,
4894	4894	24 water discharge, landfill, access roads, and coal
4895	4895	25 delivery.
4896	4896	26 The quoted construction costs shall be expressed
4897	4897
4898	4898
4899	4899
4900	4900
4901	4901
4902	4902	HB2810 - 135 - LRB104 08813 BDA 18868 b
4903	4903
4904	4904
4905	4905	HB2810- 136 -LRB104 08813 BDA 18868 b HB2810 - 136 - LRB104 08813 BDA 18868 b
4906	4906	HB2810 - 136 - LRB104 08813 BDA 18868 b
4907	4907	1 in nominal dollars as of the date that the quote is
4908	4908	2 prepared and shall include capitalized financing costs
4909	4909	3 during construction, taxes, insurance, and other
4910	4910	4 owner's costs, and an assumed escalation in materials
4911	4911	5 and labor beyond the date as of which the construction
4912	4912	6 cost quote is expressed.
4913	4913	7 (B) The front end engineering and design study for
4914	4914	8 the gasification island and the cost study for the
4915	4915	9 balance of plant shall include sufficient design work
4916	4916	10 to permit quantification of major categories of
4917	4917	11 materials, commodities and labor hours, and receipt of
4918	4918	12 quotes from vendors of major equipment required to
4919	4919	13 construct and operate the clean coal facility.
4920	4920	14 (C) The facility cost report shall also include an
4921	4921	15 operating and maintenance cost quote that will provide
4922	4922	16 the estimated cost of delivered fuel, personnel,
4923	4923	17 maintenance contracts, chemicals, catalysts,
4924	4924	18 consumables, spares, and other fixed and variable
4925	4925	19 operations and maintenance costs. The delivered fuel
4926	4926	20 cost estimate will be provided by a recognized third
4927	4927	21 party expert or experts in the fuel and transportation
4928	4928	22 industries. The balance of the operating and
4929	4929	23 maintenance cost quote, excluding delivered fuel
4930	4930	24 costs, will be developed based on the inputs provided
4931	4931	25 by duly licensed engineering and construction firms
4932	4932	26 performing the construction cost quote, potential
4933	4933
4934	4934
4935	4935
4936	4936
4937	4937
4938	4938	HB2810 - 136 - LRB104 08813 BDA 18868 b
4939	4939
4940	4940
4941	4941	HB2810- 137 -LRB104 08813 BDA 18868 b HB2810 - 137 - LRB104 08813 BDA 18868 b
4942	4942	HB2810 - 137 - LRB104 08813 BDA 18868 b
4943	4943	1 vendors under long-term service agreements and plant
4944	4944	2 operating agreements, or recognized third party plant
4945	4945	3 operator or operators.
4946	4946	4 The operating and maintenance cost quote
4947	4947	5 (including the cost of the front end engineering and
4948	4948	6 design study) shall be expressed in nominal dollars as
4949	4949	7 of the date that the quote is prepared and shall
4950	4950	8 include taxes, insurance, and other owner's costs, and
4951	4951	9 an assumed escalation in materials and labor beyond
4952	4952	10 the date as of which the operating and maintenance
4953	4953	11 cost quote is expressed.
4954	4954	12 (D) The facility cost report shall also include an
4955	4955	13 analysis of the initial clean coal facility's ability
4956	4956	14 to deliver power and energy into the applicable
4957	4957	15 regional transmission organization markets and an
4958	4958	16 analysis of the expected capacity factor for the
4959	4959	17 initial clean coal facility.
4960	4960	18 (E) Amounts paid to third parties unrelated to the
4961	4961	19 owner or owners of the initial clean coal facility to
4962	4962	20 prepare the core plant construction cost quote,
4963	4963	21 including the front end engineering and design study,
4964	4964	22 and the operating and maintenance cost quote will be
4965	4965	23 reimbursed through Coal Development Bonds.
4966	4966	24 (5) Re-powering and retrofitting coal-fired power
4967	4967	25 plants previously owned by Illinois utilities to qualify
4968	4968	26 as clean coal facilities. During the 2009 procurement
4969	4969
4970	4970
4971	4971
4972	4972
4973	4973
4974	4974	HB2810 - 137 - LRB104 08813 BDA 18868 b
4975	4975
4976	4976
4977	4977	HB2810- 138 -LRB104 08813 BDA 18868 b HB2810 - 138 - LRB104 08813 BDA 18868 b
4978	4978	HB2810 - 138 - LRB104 08813 BDA 18868 b
4979	4979	1 planning process and thereafter, the Agency and the
4980	4980	2 Commission shall consider sourcing agreements covering
4981	4981	3 electricity generated by power plants that were previously
4982	4982	4 owned by Illinois utilities and that have been or will be
4983	4983	5 converted into clean coal facilities, as defined by
4984	4984	6 Section 1-10 of this Act. Pursuant to such procurement
4985	4985	7 planning process, the owners of such facilities may
4986	4986	8 propose to the Agency sourcing agreements with utilities
4987	4987	9 and alternative retail electric suppliers required to
4988	4988	10 comply with subsection (d) of this Section and item (5) of
4989	4989	11 subsection (d) of Section 16-115 of the Public Utilities
4990	4990	12 Act, covering electricity generated by such facilities. In
4991	4991	13 the case of sourcing agreements that are power purchase
4992	4992	14 agreements, the contract price for electricity sales shall
4993	4993	15 be established on a cost of service basis. In the case of
4994	4994	16 sourcing agreements that are contracts for differences,
4995	4995	17 the contract price from which the reference price is
4996	4996	18 subtracted shall be established on a cost of service
4997	4997	19 basis. The Agency and the Commission may approve any such
4998	4998	20 utility sourcing agreements that do not exceed cost-based
4999	4999	21 benchmarks developed by the procurement administrator, in
5000	5000	22 consultation with the Commission staff, Agency staff and
5001	5001	23 the procurement monitor, subject to Commission review and
5002	5002	24 approval. The Commission shall have authority to inspect
5003	5003	25 all books and records associated with these clean coal
5004	5004	26 facilities during the term of any such contract.
5005	5005
5006	5006
5007	5007
5008	5008
5009	5009
5010	5010	HB2810 - 138 - LRB104 08813 BDA 18868 b
5011	5011
5012	5012
5013	5013	HB2810- 139 -LRB104 08813 BDA 18868 b HB2810 - 139 - LRB104 08813 BDA 18868 b
5014	5014	HB2810 - 139 - LRB104 08813 BDA 18868 b
5015	5015	1 (6) Costs incurred under this subsection (d) or
5016	5016	2 pursuant to a contract entered into under this subsection
5017	5017	3 (d) shall be deemed prudently incurred and reasonable in
5018	5018	4 amount and the electric utility shall be entitled to full
5019	5019	5 cost recovery pursuant to the tariffs filed with the
5020	5020	6 Commission.
5021	5021	7 (d-5) Zero emission standard.
5022	5022	8 (1) Beginning with the delivery year commencing on
5023	5023	9 June 1, 2017, the Agency shall, for electric utilities
5024	5024	10 that serve at least 100,000 retail customers in this
5025	5025	11 State, procure contracts with zero emission facilities
5026	5026	12 that are reasonably capable of generating cost-effective
5027	5027	13 zero emission credits in an amount approximately equal to
5028	5028	14 16% of the actual amount of electricity delivered by each
5029	5029	15 electric utility to retail customers in the State during
5030	5030	16 calendar year 2014. For an electric utility serving fewer
5031	5031	17 than 100,000 retail customers in this State that
5032	5032	18 requested, under Section 16-111.5 of the Public Utilities
5033	5033	19 Act, that the Agency procure power and energy for all or a
5034	5034	20 portion of the utility's Illinois load for the delivery
5035	5035	21 year commencing June 1, 2016, the Agency shall procure
5036	5036	22 contracts with zero emission facilities that are
5037	5037	23 reasonably capable of generating cost-effective zero
5038	5038	24 emission credits in an amount approximately equal to 16%
5039	5039	25 of the portion of power and energy to be procured by the
5040	5040	26 Agency for the utility. The duration of the contracts
5041	5041
5042	5042
5043	5043
5044	5044
5045	5045
5046	5046	HB2810 - 139 - LRB104 08813 BDA 18868 b
5047	5047
5048	5048
5049	5049	HB2810- 140 -LRB104 08813 BDA 18868 b HB2810 - 140 - LRB104 08813 BDA 18868 b
5050	5050	HB2810 - 140 - LRB104 08813 BDA 18868 b
5051	5051	1 procured under this subsection (d-5) shall be for a term
5052	5052	2 of 10 years ending May 31, 2027. The quantity of zero
5053	5053	3 emission credits to be procured under the contracts shall
5054	5054	4 be all of the zero emission credits generated by the zero
5055	5055	5 emission facility in each delivery year; however, if the
5056	5056	6 zero emission facility is owned by more than one entity,
5057	5057	7 then the quantity of zero emission credits to be procured
5058	5058	8 under the contracts shall be the amount of zero emission
5059	5059	9 credits that are generated from the portion of the zero
5060	5060	10 emission facility that is owned by the winning supplier.
5061	5061	11 The 16% value identified in this paragraph (1) is the
5062	5062	12 average of the percentage targets in subparagraph (B) of
5063	5063	13 paragraph (1) of subsection (c) of this Section for the 5
5064	5064	14 delivery years beginning June 1, 2017.
5065	5065	15 The procurement process shall be subject to the
5066	5066	16 following provisions:
5067	5067	17 (A) Those zero emission facilities that intend to
5068	5068	18 participate in the procurement shall submit to the
5069	5069	19 Agency the following eligibility information for each
5070	5070	20 zero emission facility on or before the date
5071	5071	21 established by the Agency:
5072	5072	22 (i) the in-service date and remaining useful
5073	5073	23 life of the zero emission facility;
5074	5074	24 (ii) the amount of power generated annually
5075	5075	25 for each of the years 2005 through 2015, and the
5076	5076	26 projected zero emission credits to be generated
5077	5077
5078	5078
5079	5079
5080	5080
5081	5081
5082	5082	HB2810 - 140 - LRB104 08813 BDA 18868 b
5083	5083
5084	5084
5085	5085	HB2810- 141 -LRB104 08813 BDA 18868 b HB2810 - 141 - LRB104 08813 BDA 18868 b
5086	5086	HB2810 - 141 - LRB104 08813 BDA 18868 b
5087	5087	1 over the remaining useful life of the zero
5088	5088	2 emission facility, which shall be used to
5089	5089	3 determine the capability of each facility;
5090	5090	4 (iii) the annual zero emission facility cost
5091	5091	5 projections, expressed on a per megawatthour
5092	5092	6 basis, over the next 6 delivery years, which shall
5093	5093	7 include the following: operation and maintenance
5094	5094	8 expenses; fully allocated overhead costs, which
5095	5095	9 shall be allocated using the methodology developed
5096	5096	10 by the Institute for Nuclear Power Operations;
5097	5097	11 fuel expenditures; non-fuel capital expenditures;
5098	5098	12 spent fuel expenditures; a return on working
5099	5099	13 capital; the cost of operational and market risks
5100	5100	14 that could be avoided by ceasing operation; and
5101	5101	15 any other costs necessary for continued
5102	5102	16 operations, provided that "necessary" means, for
5103	5103	17 purposes of this item (iii), that the costs could
5104	5104	18 reasonably be avoided only by ceasing operations
5105	5105	19 of the zero emission facility; and
5106	5106	20 (iv) a commitment to continue operating, for
5107	5107	21 the duration of the contract or contracts executed
5108	5108	22 under the procurement held under this subsection
5109	5109	23 (d-5), the zero emission facility that produces
5110	5110	24 the zero emission credits to be procured in the
5111	5111	25 procurement.
5112	5112	26 The information described in item (iii) of this
5113	5113
5114	5114
5115	5115
5116	5116
5117	5117
5118	5118	HB2810 - 141 - LRB104 08813 BDA 18868 b
5119	5119
5120	5120
5121	5121	HB2810- 142 -LRB104 08813 BDA 18868 b HB2810 - 142 - LRB104 08813 BDA 18868 b
5122	5122	HB2810 - 142 - LRB104 08813 BDA 18868 b
5123	5123	1 subparagraph (A) may be submitted on a confidential
5124	5124	2 basis and shall be treated and maintained by the
5125	5125	3 Agency, the procurement administrator, and the
5126	5126	4 Commission as confidential and proprietary and exempt
5127	5127	5 from disclosure under subparagraphs (a) and (g) of
5128	5128	6 paragraph (1) of Section 7 of the Freedom of
5129	5129	7 Information Act. The Office of Attorney General shall
5130	5130	8 have access to, and maintain the confidentiality of,
5131	5131	9 such information pursuant to Section 6.5 of the
5132	5132	10 Attorney General Act.
5133	5133	11 (B) The price for each zero emission credit
5134	5134	12 procured under this subsection (d-5) for each delivery
5135	5135	13 year shall be in an amount that equals the Social Cost
5136	5136	14 of Carbon, expressed on a price per megawatthour
5137	5137	15 basis. However, to ensure that the procurement remains
5138	5138	16 affordable to retail customers in this State if
5139	5139	17 electricity prices increase, the price in an
5140	5140	18 applicable delivery year shall be reduced below the
5141	5141	19 Social Cost of Carbon by the amount ("Price
5142	5142	20 Adjustment") by which the market price index for the
5143	5143	21 applicable delivery year exceeds the baseline market
5144	5144	22 price index for the consecutive 12-month period ending
5145	5145	23 May 31, 2016. If the Price Adjustment is greater than
5146	5146	24 or equal to the Social Cost of Carbon in an applicable
5147	5147	25 delivery year, then no payments shall be due in that
5148	5148	26 delivery year. The components of this calculation are
5149	5149
5150	5150
5151	5151
5152	5152
5153	5153
5154	5154	HB2810 - 142 - LRB104 08813 BDA 18868 b
5155	5155
5156	5156
5157	5157	HB2810- 143 -LRB104 08813 BDA 18868 b HB2810 - 143 - LRB104 08813 BDA 18868 b
5158	5158	HB2810 - 143 - LRB104 08813 BDA 18868 b
5159	5159	1 defined as follows:
5160	5160	2 (i) Social Cost of Carbon: The Social Cost of
5161	5161	3 Carbon is $16.50 per megawatthour, which is based
5162	5162	4 on the U.S. Interagency Working Group on Social
5163	5163	5 Cost of Carbon's price in the August 2016
5164	5164	6 Technical Update using a 3% discount rate,
5165	5165	7 adjusted for inflation for each year of the
5166	5166	8 program. Beginning with the delivery year
5167	5167	9 commencing June 1, 2023, the price per
5168	5168	10 megawatthour shall increase by $1 per
5169	5169	11 megawatthour, and continue to increase by an
5170	5170	12 additional $1 per megawatthour each delivery year
5171	5171	13 thereafter.
5172	5172	14 (ii) Baseline market price index: The baseline
5173	5173	15 market price index for the consecutive 12-month
5174	5174	16 period ending May 31, 2016 is $31.40 per
5175	5175	17 megawatthour, which is based on the sum of (aa)
5176	5176	18 the average day-ahead energy price across all
5177	5177	19 hours of such 12-month period at the PJM
5178	5178	20 Interconnection LLC Northern Illinois Hub, (bb)
5179	5179	21 50% multiplied by the Base Residual Auction, or
5180	5180	22 its successor, capacity price for the rest of the
5181	5181	23 RTO zone group determined by PJM Interconnection
5182	5182	24 LLC, divided by 24 hours per day, and (cc) 50%
5183	5183	25 multiplied by the Planning Resource Auction, or
5184	5184	26 its successor, capacity price for Zone 4
5185	5185
5186	5186
5187	5187
5188	5188
5189	5189
5190	5190	HB2810 - 143 - LRB104 08813 BDA 18868 b
5191	5191
5192	5192
5193	5193	HB2810- 144 -LRB104 08813 BDA 18868 b HB2810 - 144 - LRB104 08813 BDA 18868 b
5194	5194	HB2810 - 144 - LRB104 08813 BDA 18868 b
5195	5195	1 determined by the Midcontinent Independent System
5196	5196	2 Operator, Inc., divided by 24 hours per day.
5197	5197	3 (iii) Market price index: The market price
5198	5198	4 index for a delivery year shall be the sum of
5199	5199	5 projected energy prices and projected capacity
5200	5200	6 prices determined as follows:
5201	5201	7 (aa) Projected energy prices: the
5202	5202	8 projected energy prices for the applicable
5203	5203	9 delivery year shall be calculated once for the
5204	5204	10 year using the forward market price for the
5205	5205	11 PJM Interconnection, LLC Northern Illinois
5206	5206	12 Hub. The forward market price shall be
5207	5207	13 calculated as follows: the energy forward
5208	5208	14 prices for each month of the applicable
5209	5209	15 delivery year averaged for each trade date
5210	5210	16 during the calendar year immediately preceding
5211	5211	17 that delivery year to produce a single energy
5212	5212	18 forward price for the delivery year. The
5213	5213	19 forward market price calculation shall use
5214	5214	20 data published by the Intercontinental
5215	5215	21 Exchange, or its successor.
5216	5216	22 (bb) Projected capacity prices:
5217	5217	23 (I) For the delivery years commencing
5218	5218	24 June 1, 2017, June 1, 2018, and June 1,
5219	5219	25 2019, the projected capacity price shall
5220	5220	26 be equal to the sum of (1) 50% multiplied
5221	5221
5222	5222
5223	5223
5224	5224
5225	5225
5226	5226	HB2810 - 144 - LRB104 08813 BDA 18868 b
5227	5227
5228	5228
5229	5229	HB2810- 145 -LRB104 08813 BDA 18868 b HB2810 - 145 - LRB104 08813 BDA 18868 b
5230	5230	HB2810 - 145 - LRB104 08813 BDA 18868 b
5231	5231	1 by the Base Residual Auction, or its
5232	5232	2 successor, price for the rest of the RTO
5233	5233	3 zone group as determined by PJM
5234	5234	4 Interconnection LLC, divided by 24 hours
5235	5235	5 per day and, (2) 50% multiplied by the
5236	5236	6 resource auction price determined in the
5237	5237	7 resource auction administered by the
5238	5238	8 Midcontinent Independent System Operator,
5239	5239	9 Inc., in which the largest percentage of
5240	5240	10 load cleared for Local Resource Zone 4,
5241	5241	11 divided by 24 hours per day, and where
5242	5242	12 such price is determined by the
5243	5243	13 Midcontinent Independent System Operator,
5244	5244	14 Inc.
5245	5245	15 (II) For the delivery year commencing
5246	5246	16 June 1, 2020, and each year thereafter,
5247	5247	17 the projected capacity price shall be
5248	5248	18 equal to the sum of (1) 50% multiplied by
5249	5249	19 the Base Residual Auction, or its
5250	5250	20 successor, price for the ComEd zone as
5251	5251	21 determined by PJM Interconnection LLC,
5252	5252	22 divided by 24 hours per day, and (2) 50%
5253	5253	23 multiplied by the resource auction price
5254	5254	24 determined in the resource auction
5255	5255	25 administered by the Midcontinent
5256	5256	26 Independent System Operator, Inc., in
5257	5257
5258	5258
5259	5259
5260	5260
5261	5261
5262	5262	HB2810 - 145 - LRB104 08813 BDA 18868 b
5263	5263
5264	5264
5265	5265	HB2810- 146 -LRB104 08813 BDA 18868 b HB2810 - 146 - LRB104 08813 BDA 18868 b
5266	5266	HB2810 - 146 - LRB104 08813 BDA 18868 b
5267	5267	1 which the largest percentage of load
5268	5268	2 cleared for Local Resource Zone 4, divided
5269	5269	3 by 24 hours per day, and where such price
5270	5270	4 is determined by the Midcontinent
5271	5271	5 Independent System Operator, Inc.
5272	5272	6 For purposes of this subsection (d-5):
5273	5273	7 "Rest of the RTO" and "ComEd Zone" shall have
5274	5274	8 the meaning ascribed to them by PJM
5275	5275	9 Interconnection, LLC.
5276	5276	10 "RTO" means regional transmission
5277	5277	11 organization.
5278	5278	12 (C) No later than 45 days after June 1, 2017 (the
5279	5279	13 effective date of Public Act 99-906), the Agency shall
5280	5280	14 publish its proposed zero emission standard
5281	5281	15 procurement plan. The plan shall be consistent with
5282	5282	16 the provisions of this paragraph (1) and shall provide
5283	5283	17 that winning bids shall be selected based on public
5284	5284	18 interest criteria that include, but are not limited
5285	5285	19 to, minimizing carbon dioxide emissions that result
5286	5286	20 from electricity consumed in Illinois and minimizing
5287	5287	21 sulfur dioxide, nitrogen oxide, and particulate matter
5288	5288	22 emissions that adversely affect the citizens of this
5289	5289	23 State. In particular, the selection of winning bids
5290	5290	24 shall take into account the incremental environmental
5291	5291	25 benefits resulting from the procurement, such as any
5292	5292	26 existing environmental benefits that are preserved by
5293	5293
5294	5294
5295	5295
5296	5296
5297	5297
5298	5298	HB2810 - 146 - LRB104 08813 BDA 18868 b
5299	5299
5300	5300
5301	5301	HB2810- 147 -LRB104 08813 BDA 18868 b HB2810 - 147 - LRB104 08813 BDA 18868 b
5302	5302	HB2810 - 147 - LRB104 08813 BDA 18868 b
5303	5303	1 the procurements held under Public Act 99-906 and
5304	5304	2 would cease to exist if the procurements were not
5305	5305	3 held, including the preservation of zero emission
5306	5306	4 facilities. The plan shall also describe in detail how
5307	5307	5 each public interest factor shall be considered and
5308	5308	6 weighted in the bid selection process to ensure that
5309	5309	7 the public interest criteria are applied to the
5310	5310	8 procurement and given full effect.
5311	5311	9 For purposes of developing the plan, the Agency
5312	5312	10 shall consider any reports issued by a State agency,
5313	5313	11 board, or commission under House Resolution 1146 of
5314	5314	12 the 98th General Assembly and paragraph (4) of
5315	5315	13 subsection (d) of this Section, as well as publicly
5316	5316	14 available analyses and studies performed by or for
5317	5317	15 regional transmission organizations that serve the
5318	5318	16 State and their independent market monitors.
5319	5319	17 Upon publishing of the zero emission standard
5320	5320	18 procurement plan, copies of the plan shall be posted
5321	5321	19 and made publicly available on the Agency's website.
5322	5322	20 All interested parties shall have 10 days following
5323	5323	21 the date of posting to provide comment to the Agency on
5324	5324	22 the plan. All comments shall be posted to the Agency's
5325	5325	23 website. Following the end of the comment period, but
5326	5326	24 no more than 60 days later than June 1, 2017 (the
5327	5327	25 effective date of Public Act 99-906), the Agency shall
5328	5328	26 revise the plan as necessary based on the comments
5329	5329
5330	5330
5331	5331
5332	5332
5333	5333
5334	5334	HB2810 - 147 - LRB104 08813 BDA 18868 b
5335	5335
5336	5336
5337	5337	HB2810- 148 -LRB104 08813 BDA 18868 b HB2810 - 148 - LRB104 08813 BDA 18868 b
5338	5338	HB2810 - 148 - LRB104 08813 BDA 18868 b
5339	5339	1 received and file its zero emission standard
5340	5340	2 procurement plan with the Commission.
5341	5341	3 If the Commission determines that the plan will
5342	5342	4 result in the procurement of cost-effective zero
5343	5343	5 emission credits, then the Commission shall, after
5344	5344	6 notice and hearing, but no later than 45 days after the
5345	5345	7 Agency filed the plan, approve the plan or approve
5346	5346	8 with modification. For purposes of this subsection
5347	5347	9 (d-5), "cost effective" means the projected costs of
5348	5348	10 procuring zero emission credits from zero emission
5349	5349	11 facilities do not cause the limit stated in paragraph
5350	5350	12 (2) of this subsection to be exceeded.
5351	5351	13 (C-5) As part of the Commission's review and
5352	5352	14 acceptance or rejection of the procurement results,
5353	5353	15 the Commission shall, in its public notice of
5354	5354	16 successful bidders:
5355	5355	17 (i) identify how the winning bids satisfy the
5356	5356	18 public interest criteria described in subparagraph
5357	5357	19 (C) of this paragraph (1) of minimizing carbon
5358	5358	20 dioxide emissions that result from electricity
5359	5359	21 consumed in Illinois and minimizing sulfur
5360	5360	22 dioxide, nitrogen oxide, and particulate matter
5361	5361	23 emissions that adversely affect the citizens of
5362	5362	24 this State;
5363	5363	25 (ii) specifically address how the selection of
5364	5364	26 winning bids takes into account the incremental
5365	5365
5366	5366
5367	5367
5368	5368
5369	5369
5370	5370	HB2810 - 148 - LRB104 08813 BDA 18868 b
5371	5371
5372	5372
5373	5373	HB2810- 149 -LRB104 08813 BDA 18868 b HB2810 - 149 - LRB104 08813 BDA 18868 b
5374	5374	HB2810 - 149 - LRB104 08813 BDA 18868 b
5375	5375	1 environmental benefits resulting from the
5376	5376	2 procurement, including any existing environmental
5377	5377	3 benefits that are preserved by the procurements
5378	5378	4 held under Public Act 99-906 and would have ceased
5379	5379	5 to exist if the procurements had not been held,
5380	5380	6 such as the preservation of zero emission
5381	5381	7 facilities;
5382	5382	8 (iii) quantify the environmental benefit of
5383	5383	9 preserving the resources identified in item (ii)
5384	5384	10 of this subparagraph (C-5), including the
5385	5385	11 following:
5386	5386	12 (aa) the value of avoided greenhouse gas
5387	5387	13 emissions measured as the product of the zero
5388	5388	14 emission facilities' output over the contract
5389	5389	15 term multiplied by the U.S. Environmental
5390	5390	16 Protection Agency eGrid subregion carbon
5391	5391	17 dioxide emission rate and the U.S. Interagency
5392	5392	18 Working Group on Social Cost of Carbon's price
5393	5393	19 in the August 2016 Technical Update using a 3%
5394	5394	20 discount rate, adjusted for inflation for each
5395	5395	21 delivery year; and
5396	5396	22 (bb) the costs of replacement with other
5397	5397	23 zero carbon dioxide resources, including wind
5398	5398	24 and photovoltaic, based upon the simple
5399	5399	25 average of the following:
5400	5400	26 (I) the price, or if there is more
5401	5401
5402	5402
5403	5403
5404	5404
5405	5405
5406	5406	HB2810 - 149 - LRB104 08813 BDA 18868 b
5407	5407
5408	5408
5409	5409	HB2810- 150 -LRB104 08813 BDA 18868 b HB2810 - 150 - LRB104 08813 BDA 18868 b
5410	5410	HB2810 - 150 - LRB104 08813 BDA 18868 b
5411	5411	1 than one price, the average of the prices,
5412	5412	2 paid for renewable energy credits from new
5413	5413	3 utility-scale wind projects in the
5414	5414	4 procurement events specified in item (i)
5415	5415	5 of subparagraph (G) of paragraph (1) of
5416	5416	6 subsection (c) of this Section; and
5417	5417	7 (II) the price, or if there is more
5418	5418	8 than one price, the average of the prices,
5419	5419	9 paid for renewable energy credits from new
5420	5420	10 utility-scale solar projects and
5421	5421	11 brownfield site photovoltaic projects in
5422	5422	12 the procurement events specified in item
5423	5423	13 (ii) of subparagraph (G) of paragraph (1)
5424	5424	14 of subsection (c) of this Section and,
5425	5425	15 after January 1, 2015, renewable energy
5426	5426	16 credits from photovoltaic distributed
5427	5427	17 generation projects in procurement events
5428	5428	18 held under subsection (c) of this Section.
5429	5429	19 Each utility shall enter into binding contractual
5430	5430	20 arrangements with the winning suppliers.
5431	5431	21 The procurement described in this subsection
5432	5432	22 (d-5), including, but not limited to, the execution of
5433	5433	23 all contracts procured, shall be completed no later
5434	5434	24 than May 10, 2017. Based on the effective date of
5435	5435	25 Public Act 99-906, the Agency and Commission may, as
5436	5436	26 appropriate, modify the various dates and timelines
5437	5437
5438	5438
5439	5439
5440	5440
5441	5441
5442	5442	HB2810 - 150 - LRB104 08813 BDA 18868 b
5443	5443
5444	5444
5445	5445	HB2810- 151 -LRB104 08813 BDA 18868 b HB2810 - 151 - LRB104 08813 BDA 18868 b
5446	5446	HB2810 - 151 - LRB104 08813 BDA 18868 b
5447	5447	1 under this subparagraph and subparagraphs (C) and (D)
5448	5448	2 of this paragraph (1). The procurement and plan
5449	5449	3 approval processes required by this subsection (d-5)
5450	5450	4 shall be conducted in conjunction with the procurement
5451	5451	5 and plan approval processes required by subsection (c)
5452	5452	6 of this Section and Section 16-111.5 of the Public
5453	5453	7 Utilities Act, to the extent practicable.
5454	5454	8 Notwithstanding whether a procurement event is
5455	5455	9 conducted under Section 16-111.5 of the Public
5456	5456	10 Utilities Act, the Agency shall immediately initiate a
5457	5457	11 procurement process on June 1, 2017 (the effective
5458	5458	12 date of Public Act 99-906).
5459	5459	13 (D) Following the procurement event described in
5460	5460	14 this paragraph (1) and consistent with subparagraph
5461	5461	15 (B) of this paragraph (1), the Agency shall calculate
5462	5462	16 the payments to be made under each contract for the
5463	5463	17 next delivery year based on the market price index for
5464	5464	18 that delivery year. The Agency shall publish the
5465	5465	19 payment calculations no later than May 25, 2017 and
5466	5466	20 every May 25 thereafter.
5467	5467	21 (E) Notwithstanding the requirements of this
5468	5468	22 subsection (d-5), the contracts executed under this
5469	5469	23 subsection (d-5) shall provide that the zero emission
5470	5470	24 facility may, as applicable, suspend or terminate
5471	5471	25 performance under the contracts in the following
5472	5472	26 instances:
5473	5473
5474	5474
5475	5475
5476	5476
5477	5477
5478	5478	HB2810 - 151 - LRB104 08813 BDA 18868 b
5479	5479
5480	5480
5481	5481	HB2810- 152 -LRB104 08813 BDA 18868 b HB2810 - 152 - LRB104 08813 BDA 18868 b
5482	5482	HB2810 - 152 - LRB104 08813 BDA 18868 b
5483	5483	1 (i) A zero emission facility shall be excused
5484	5484	2 from its performance under the contract for any
5485	5485	3 cause beyond the control of the resource,
5486	5486	4 including, but not restricted to, acts of God,
5487	5487	5 flood, drought, earthquake, storm, fire,
5488	5488	6 lightning, epidemic, war, riot, civil disturbance
5489	5489	7 or disobedience, labor dispute, labor or material
5490	5490	8 shortage, sabotage, acts of public enemy,
5491	5491	9 explosions, orders, regulations or restrictions
5492	5492	10 imposed by governmental, military, or lawfully
5493	5493	11 established civilian authorities, which, in any of
5494	5494	12 the foregoing cases, by exercise of commercially
5495	5495	13 reasonable efforts the zero emission facility
5496	5496	14 could not reasonably have been expected to avoid,
5497	5497	15 and which, by the exercise of commercially
5498	5498	16 reasonable efforts, it has been unable to
5499	5499	17 overcome. In such event, the zero emission
5500	5500	18 facility shall be excused from performance for the
5501	5501	19 duration of the event, including, but not limited
5502	5502	20 to, delivery of zero emission credits, and no
5503	5503	21 payment shall be due to the zero emission facility
5504	5504	22 during the duration of the event.
5505	5505	23 (ii) A zero emission facility shall be
5506	5506	24 permitted to terminate the contract if legislation
5507	5507	25 is enacted into law by the General Assembly that
5508	5508	26 imposes or authorizes a new tax, special
5509	5509
5510	5510
5511	5511
5512	5512
5513	5513
5514	5514	HB2810 - 152 - LRB104 08813 BDA 18868 b
5515	5515
5516	5516
5517	5517	HB2810- 153 -LRB104 08813 BDA 18868 b HB2810 - 153 - LRB104 08813 BDA 18868 b
5518	5518	HB2810 - 153 - LRB104 08813 BDA 18868 b
5519	5519	1 assessment, or fee on the generation of
5520	5520	2 electricity, the ownership or leasehold of a
5521	5521	3 generating unit, or the privilege or occupation of
5522	5522	4 such generation, ownership, or leasehold of
5523	5523	5 generation units by a zero emission facility.
5524	5524	6 However, the provisions of this item (ii) do not
5525	5525	7 apply to any generally applicable tax, special
5526	5526	8 assessment or fee, or requirements imposed by
5527	5527	9 federal law.
5528	5528	10 (iii) A zero emission facility shall be
5529	5529	11 permitted to terminate the contract in the event
5530	5530	12 that the resource requires capital expenditures in
5531	5531	13 excess of $40,000,000 that were neither known nor
5532	5532	14 reasonably foreseeable at the time it executed the
5533	5533	15 contract and that a prudent owner or operator of
5534	5534	16 such resource would not undertake.
5535	5535	17 (iv) A zero emission facility shall be
5536	5536	18 permitted to terminate the contract in the event
5537	5537	19 the Nuclear Regulatory Commission terminates the
5538	5538	20 resource's license.
5539	5539	21 (F) If the zero emission facility elects to
5540	5540	22 terminate a contract under subparagraph (E) of this
5541	5541	23 paragraph (1), then the Commission shall reopen the
5542	5542	24 docket in which the Commission approved the zero
5543	5543	25 emission standard procurement plan under subparagraph
5544	5544	26 (C) of this paragraph (1) and, after notice and
5545	5545
5546	5546
5547	5547
5548	5548
5549	5549
5550	5550	HB2810 - 153 - LRB104 08813 BDA 18868 b
5551	5551
5552	5552
5553	5553	HB2810- 154 -LRB104 08813 BDA 18868 b HB2810 - 154 - LRB104 08813 BDA 18868 b
5554	5554	HB2810 - 154 - LRB104 08813 BDA 18868 b
5555	5555	1 hearing, enter an order acknowledging the contract
5556	5556	2 termination election if such termination is consistent
5557	5557	3 with the provisions of this subsection (d-5).
5558	5558	4 (2) For purposes of this subsection (d-5), the amount
5559	5559	5 paid per kilowatthour means the total amount paid for
5560	5560	6 electric service expressed on a per kilowatthour basis.
5561	5561	7 For purposes of this subsection (d-5), the total amount
5562	5562	8 paid for electric service includes, without limitation,
5563	5563	9 amounts paid for supply, transmission, distribution,
5564	5564	10 surcharges, and add-on taxes.
5565	5565	11 Notwithstanding the requirements of this subsection
5566	5566	12 (d-5), the contracts executed under this subsection (d-5)
5567	5567	13 shall provide that the total of zero emission credits
5568	5568	14 procured under a procurement plan shall be subject to the
5569	5569	15 limitations of this paragraph (2). For each delivery year,
5570	5570	16 the contractual volume receiving payments in such year
5571	5571	17 shall be reduced for all retail customers based on the
5572	5572	18 amount necessary to limit the net increase that delivery
5573	5573	19 year to the costs of those credits included in the amounts
5574	5574	20 paid by eligible retail customers in connection with
5575	5575	21 electric service to no more than 1.65% of the amount paid
5576	5576	22 per kilowatthour by eligible retail customers during the
5577	5577	23 year ending May 31, 2009. The result of this computation
5578	5578	24 shall apply to and reduce the procurement for all retail
5579	5579	25 customers, and all those customers shall pay the same
5580	5580	26 single, uniform cents per kilowatthour charge under
5581	5581
5582	5582
5583	5583
5584	5584
5585	5585
5586	5586	HB2810 - 154 - LRB104 08813 BDA 18868 b
5587	5587
5588	5588
5589	5589	HB2810- 155 -LRB104 08813 BDA 18868 b HB2810 - 155 - LRB104 08813 BDA 18868 b
5590	5590	HB2810 - 155 - LRB104 08813 BDA 18868 b
5591	5591	1 subsection (k) of Section 16-108 of the Public Utilities
5592	5592	2 Act. To arrive at a maximum dollar amount of zero emission
5593	5593	3 credits to be paid for the particular delivery year, the
5594	5594	4 resulting per kilowatthour amount shall be applied to the
5595	5595	5 actual amount of kilowatthours of electricity delivered by
5596	5596	6 the electric utility in the delivery year immediately
5597	5597	7 prior to the procurement, to all retail customers in its
5598	5598	8 service territory. Unpaid contractual volume for any
5599	5599	9 delivery year shall be paid in any subsequent delivery
5600	5600	10 year in which such payments can be made without exceeding
5601	5601	11 the amount specified in this paragraph (2). The
5602	5602	12 calculations required by this paragraph (2) shall be made
5603	5603	13 only once for each procurement plan year. Once the
5604	5604	14 determination as to the amount of zero emission credits to
5605	5605	15 be paid is made based on the calculations set forth in this
5606	5606	16 paragraph (2), no subsequent rate impact determinations
5607	5607	17 shall be made and no adjustments to those contract amounts
5608	5608	18 shall be allowed. All costs incurred under those contracts
5609	5609	19 and in implementing this subsection (d-5) shall be
5610	5610	20 recovered by the electric utility as provided in this
5611	5611	21 Section.
5612	5612	22 No later than June 30, 2019, the Commission shall
5613	5613	23 review the limitation on the amount of zero emission
5614	5614	24 credits procured under this subsection (d-5) and report to
5615	5615	25 the General Assembly its findings as to whether that
5616	5616	26 limitation unduly constrains the procurement of
5617	5617
5618	5618
5619	5619
5620	5620
5621	5621
5622	5622	HB2810 - 155 - LRB104 08813 BDA 18868 b
5623	5623
5624	5624
5625	5625	HB2810- 156 -LRB104 08813 BDA 18868 b HB2810 - 156 - LRB104 08813 BDA 18868 b
5626	5626	HB2810 - 156 - LRB104 08813 BDA 18868 b
5627	5627	1 cost-effective zero emission credits.
5628	5628	2 (3) Six years after the execution of a contract under
5629	5629	3 this subsection (d-5), the Agency shall determine whether
5630	5630	4 the actual zero emission credit payments received by the
5631	5631	5 supplier over the 6-year period exceed the Average ZEC
5632	5632	6 Payment. In addition, at the end of the term of a contract
5633	5633	7 executed under this subsection (d-5), or at the time, if
5634	5634	8 any, a zero emission facility's contract is terminated
5635	5635	9 under subparagraph (E) of paragraph (1) of this subsection
5636	5636	10 (d-5), then the Agency shall determine whether the actual
5637	5637	11 zero emission credit payments received by the supplier
5638	5638	12 over the term of the contract exceed the Average ZEC
5639	5639	13 Payment, after taking into account any amounts previously
5640	5640	14 credited back to the utility under this paragraph (3). If
5641	5641	15 the Agency determines that the actual zero emission credit
5642	5642	16 payments received by the supplier over the relevant period
5643	5643	17 exceed the Average ZEC Payment, then the supplier shall
5644	5644	18 credit the difference back to the utility. The amount of
5645	5645	19 the credit shall be remitted to the applicable electric
5646	5646	20 utility no later than 120 days after the Agency's
5647	5647	21 determination, which the utility shall reflect as a credit
5648	5648	22 on its retail customer bills as soon as practicable;
5649	5649	23 however, the credit remitted to the utility shall not
5650	5650	24 exceed the total amount of payments received by the
5651	5651	25 facility under its contract.
5652	5652	26 For purposes of this Section, the Average ZEC Payment
5653	5653
5654	5654
5655	5655
5656	5656
5657	5657
5658	5658	HB2810 - 156 - LRB104 08813 BDA 18868 b
5659	5659
5660	5660
5661	5661	HB2810- 157 -LRB104 08813 BDA 18868 b HB2810 - 157 - LRB104 08813 BDA 18868 b
5662	5662	HB2810 - 157 - LRB104 08813 BDA 18868 b
5663	5663	1 shall be calculated by multiplying the quantity of zero
5664	5664	2 emission credits delivered under the contract times the
5665	5665	3 average contract price. The average contract price shall
5666	5666	4 be determined by subtracting the amount calculated under
5667	5667	5 subparagraph (B) of this paragraph (3) from the amount
5668	5668	6 calculated under subparagraph (A) of this paragraph (3),
5669	5669	7 as follows:
5670	5670	8 (A) The average of the Social Cost of Carbon, as
5671	5671	9 defined in subparagraph (B) of paragraph (1) of this
5672	5672	10 subsection (d-5), during the term of the contract.
5673	5673	11 (B) The average of the market price indices, as
5674	5674	12 defined in subparagraph (B) of paragraph (1) of this
5675	5675	13 subsection (d-5), during the term of the contract,
5676	5676	14 minus the baseline market price index, as defined in
5677	5677	15 subparagraph (B) of paragraph (1) of this subsection
5678	5678	16 (d-5).
5679	5679	17 If the subtraction yields a negative number, then the
5680	5680	18 Average ZEC Payment shall be zero.
5681	5681	19 (4) Cost-effective zero emission credits procured from
5682	5682	20 zero emission facilities shall satisfy the applicable
5683	5683	21 definitions set forth in Section 1-10 of this Act.
5684	5684	22 (5) The electric utility shall retire all zero
5685	5685	23 emission credits used to comply with the requirements of
5686	5686	24 this subsection (d-5).
5687	5687	25 (6) Electric utilities shall be entitled to recover
5688	5688	26 all of the costs associated with the procurement of zero
5689	5689
5690	5690
5691	5691
5692	5692
5693	5693
5694	5694	HB2810 - 157 - LRB104 08813 BDA 18868 b
5695	5695
5696	5696
5697	5697	HB2810- 158 -LRB104 08813 BDA 18868 b HB2810 - 158 - LRB104 08813 BDA 18868 b
5698	5698	HB2810 - 158 - LRB104 08813 BDA 18868 b
5699	5699	1 emission credits through an automatic adjustment clause
5700	5700	2 tariff in accordance with subsection (k) and (m) of
5701	5701	3 Section 16-108 of the Public Utilities Act, and the
5702	5702	4 contracts executed under this subsection (d-5) shall
5703	5703	5 provide that the utilities' payment obligations under such
5704	5704	6 contracts shall be reduced if an adjustment is required
5705	5705	7 under subsection (m) of Section 16-108 of the Public
5706	5706	8 Utilities Act.
5707	5707	9 (7) This subsection (d-5) shall become inoperative on
5708	5708	10 January 1, 2028.
5709	5709	11 (d-10) Nuclear Plant Assistance; carbon mitigation
5710	5710	12 credits.
5711	5711	13 (1) The General Assembly finds:
5712	5712	14 (A) The health, welfare, and prosperity of all
5713	5713	15 Illinois citizens require that the State of Illinois act
5714	5714	16 to avoid and not increase carbon emissions from electric
5715	5715	17 generation sources while continuing to ensure affordable,
5716	5716	18 stable, and reliable electricity to all citizens.
5717	5717	19 (B) Absent immediate action by the State to preserve
5718	5718	20 existing carbon-free energy resources, those resources may
5719	5719	21 retire, and the electric generation needs of Illinois'
5720	5720	22 retail customers may be met instead by facilities that
5721	5721	23 emit significant amounts of carbon pollution and other
5722	5722	24 harmful air pollutants at a high social and economic cost
5723	5723	25 until Illinois is able to develop other forms of clean
5724	5724	26 energy.
5725	5725
5726	5726
5727	5727
5728	5728
5729	5729
5730	5730	HB2810 - 158 - LRB104 08813 BDA 18868 b
5731	5731
5732	5732
5733	5733	HB2810- 159 -LRB104 08813 BDA 18868 b HB2810 - 159 - LRB104 08813 BDA 18868 b
5734	5734	HB2810 - 159 - LRB104 08813 BDA 18868 b
5735	5735	1 (C) The General Assembly finds that nuclear power
5736	5736	2 generation is necessary for the State's transition to 100%
5737	5737	3 clean energy, and ensuring continued operation of nuclear
5738	5738	4 plants advances environmental and public health interests
5739	5739	5 through providing carbon-free electricity while reducing
5740	5740	6 the air pollution profile of the Illinois energy
5741	5741	7 generation fleet.
5742	5742	8 (D) The clean energy attributes of nuclear generation
5743	5743	9 facilities support the State in its efforts to achieve
5744	5744	10 100% clean energy.
5745	5745	11 (E) The State currently invests in various forms of
5746	5746	12 clean energy, including, but not limited to, renewable
5747	5747	13 energy, energy efficiency, and low-emission vehicles,
5748	5748	14 among others.
5749	5749	15 (F) The Environmental Protection Agency commissioned
5750	5750	16 an independent audit which provided a detailed assessment
5751	5751	17 of the financial condition of the Illinois nuclear fleet
5752	5752	18 to evaluate its financial viability and whether the
5753	5753	19 environmental benefits of such resources were at risk. The
5754	5754	20 report identified the risk of losing the environmental
5755	5755	21 benefits of several specific nuclear units. The report
5756	5756	22 also identified that the LaSalle County Generating Station
5757	5757	23 will continue to operate through 2026 and therefore is not
5758	5758	24 eligible to participate in the carbon mitigation credit
5759	5759	25 program.
5760	5760	26 (G) Nuclear plants provide carbon-free energy, which
5761	5761
5762	5762
5763	5763
5764	5764
5765	5765
5766	5766	HB2810 - 159 - LRB104 08813 BDA 18868 b
5767	5767
5768	5768
5769	5769	HB2810- 160 -LRB104 08813 BDA 18868 b HB2810 - 160 - LRB104 08813 BDA 18868 b
5770	5770	HB2810 - 160 - LRB104 08813 BDA 18868 b
5771	5771	1 helps to avoid many health-related negative impacts for
5772	5772	2 Illinois residents.
5773	5773	3 (H) The procurement of carbon mitigation credits
5774	5774	4 representing the environmental benefits of carbon-free
5775	5775	5 generation will further the State's efforts at achieving
5776	5776	6 100% clean energy and decarbonizing the electricity sector
5777	5777	7 in a safe, reliable, and affordable manner. Further, the
5778	5778	8 procurement of carbon emission credits will enhance the
5779	5779	9 health and welfare of Illinois residents through decreased
5780	5780	10 reliance on more highly polluting generation.
5781	5781	11 (I) The General Assembly therefore finds it necessary
5782	5782	12 to establish carbon mitigation credits to ensure decreased
5783	5783	13 reliance on more carbon-intensive energy resources, for
5784	5784	14 transitioning to a fully decarbonized electricity sector,
5785	5785	15 and to help ensure health and welfare of the State's
5786	5786	16 residents.
5787	5787	17 (2) As used in this subsection:
5788	5788	18 "Baseline costs" means costs used to establish a customer
5789	5789	19 protection cap that have been evaluated through an independent
5790	5790	20 audit of a carbon-free energy resource conducted by the
5791	5791	21 Environmental Protection Agency that evaluated projected
5792	5792	22 annual costs for operation and maintenance expenses; fully
5793	5793	23 allocated overhead costs, which shall be allocated using the
5794	5794	24 methodology developed by the Institute for Nuclear Power
5795	5795	25 Operations; fuel expenditures; nonfuel capital expenditures;
5796	5796	26 spent fuel expenditures; a return on working capital; the cost
5797	5797
5798	5798
5799	5799
5800	5800
5801	5801
5802	5802	HB2810 - 160 - LRB104 08813 BDA 18868 b
5803	5803
5804	5804
5805	5805	HB2810- 161 -LRB104 08813 BDA 18868 b HB2810 - 161 - LRB104 08813 BDA 18868 b
5806	5806	HB2810 - 161 - LRB104 08813 BDA 18868 b
5807	5807	1 of operational and market risks that could be avoided by
5808	5808	2 ceasing operation; and any other costs necessary for continued
5809	5809	3 operations, provided that "necessary" means, for purposes of
5810	5810	4 this definition, that the costs could reasonably be avoided
5811	5811	5 only by ceasing operations of the carbon-free energy resource.
5812	5812	6 "Carbon mitigation credit" means a tradable credit that
5813	5813	7 represents the carbon emission reduction attributes of one
5814	5814	8 megawatt-hour of energy produced from a carbon-free energy
5815	5815	9 resource.
5816	5816	10 "Carbon-free energy resource" means a generation facility
5817	5817	11 that: (1) is fueled by nuclear power; and (2) is
5818	5818	12 interconnected to PJM Interconnection, LLC.
5819	5819	13 (3) Procurement.
5820	5820	14 (A) Beginning with the delivery year commencing on
5821	5821	15 June 1, 2022, the Agency shall, for electric utilities
5822	5822	16 serving at least 3,000,000 retail customers in the State,
5823	5823	17 seek to procure contracts for no more than approximately
5824	5824	18 54,500,000 cost-effective carbon mitigation credits from
5825	5825	19 carbon-free energy resources because such credits are
5826	5826	20 necessary to support current levels of carbon-free energy
5827	5827	21 generation and ensure the State meets its carbon dioxide
5828	5828	22 emissions reduction goals. The Agency shall not make a
5829	5829	23 partial award of a contract for carbon mitigation credits
5830	5830	24 covering a fractional amount of a carbon-free energy
5831	5831	25 resource's projected output.
5832	5832	26 (B) Each carbon-free energy resource that intends to
5833	5833
5834	5834
5835	5835
5836	5836
5837	5837
5838	5838	HB2810 - 161 - LRB104 08813 BDA 18868 b
5839	5839
5840	5840
5841	5841	HB2810- 162 -LRB104 08813 BDA 18868 b HB2810 - 162 - LRB104 08813 BDA 18868 b
5842	5842	HB2810 - 162 - LRB104 08813 BDA 18868 b
5843	5843	1 participate in a procurement shall be required to submit
5844	5844	2 to the Agency the following information for the resource
5845	5845	3 on or before the date established by the Agency:
5846	5846	4 (i) the in-service date and remaining useful life
5847	5847	5 of the carbon-free energy resource;
5848	5848	6 (ii) the amount of power generated annually for
5849	5849	7 each of the past 10 years, which shall be used to
5850	5850	8 determine the capability of each facility;
5851	5851	9 (iii) a commitment to be reflected in any contract
5852	5852	10 entered into pursuant to this subsection (d-10) to
5853	5853	11 continue operating the carbon-free energy resource at
5854	5854	12 a capacity factor of at least 88% annually on average
5855	5855	13 for the duration of the contract or contracts executed
5856	5856	14 under the procurement held under this subsection
5857	5857	15 (d-10), except in an instance described in
5858	5858	16 subparagraph (E) of paragraph (1) of subsection (d-5)
5859	5859	17 of this Section or made impracticable as a result of
5860	5860	18 compliance with law or regulation;
5861	5861	19 (iv) financial need and the risk of loss of the
5862	5862	20 environmental benefits of such resource, which shall
5863	5863	21 include the following information:
5864	5864	22 (I) the carbon-free energy resource's cost
5865	5865	23 projections, expressed on a per megawatt-hour
5866	5866	24 basis, over the next 5 delivery years, which shall
5867	5867	25 include the following: operation and maintenance
5868	5868	26 expenses; fully allocated overhead costs, which
5869	5869
5870	5870
5871	5871
5872	5872
5873	5873
5874	5874	HB2810 - 162 - LRB104 08813 BDA 18868 b
5875	5875
5876	5876
5877	5877	HB2810- 163 -LRB104 08813 BDA 18868 b HB2810 - 163 - LRB104 08813 BDA 18868 b
5878	5878	HB2810 - 163 - LRB104 08813 BDA 18868 b
5879	5879	1 shall be allocated using the methodology developed
5880	5880	2 by the Institute for Nuclear Power Operations;
5881	5881	3 fuel expenditures; nonfuel capital expenditures;
5882	5882	4 spent fuel expenditures; a return on working
5883	5883	5 capital; the cost of operational and market risks
5884	5884	6 that could be avoided by ceasing operation; and
5885	5885	7 any other costs necessary for continued
5886	5886	8 operations, provided that "necessary" means, for
5887	5887	9 purposes of this subitem (I), that the costs could
5888	5888	10 reasonably be avoided only by ceasing operations
5889	5889	11 of the carbon-free energy resource; and
5890	5890	12 (II) the carbon-free energy resource's revenue
5891	5891	13 projections, including energy, capacity, ancillary
5892	5892	14 services, any other direct State support, known or
5893	5893	15 anticipated federal attribute credits, known or
5894	5894	16 anticipated tax credits, and any other direct
5895	5895	17 federal support.
5896	5896	18 The information described in this subparagraph (B) may
5897	5897	19 be submitted on a confidential basis and shall be treated
5898	5898	20 and maintained by the Agency, the procurement
5899	5899	21 administrator, and the Commission as confidential and
5900	5900	22 proprietary and exempt from disclosure under subparagraphs
5901	5901	23 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
5902	5902	24 Information Act. The Office of the Attorney General shall
5903	5903	25 have access to, and maintain the confidentiality of, such
5904	5904	26 information pursuant to Section 6.5 of the Attorney
5905	5905
5906	5906
5907	5907
5908	5908
5909	5909
5910	5910	HB2810 - 163 - LRB104 08813 BDA 18868 b
5911	5911
5912	5912
5913	5913	HB2810- 164 -LRB104 08813 BDA 18868 b HB2810 - 164 - LRB104 08813 BDA 18868 b
5914	5914	HB2810 - 164 - LRB104 08813 BDA 18868 b
5915	5915	1 General Act.
5916	5916	2 (C) The Agency shall solicit bids for the contracts
5917	5917	3 described in this subsection (d-10) from carbon-free
5918	5918	4 energy resources that have satisfied the requirements of
5919	5919	5 subparagraph (B) of this paragraph (3). The contracts
5920	5920	6 procured pursuant to a procurement event shall reflect,
5921	5921	7 and be subject to, the following terms, requirements, and
5922	5922	8 limitations:
5923	5923	9 (i) Contracts are for delivery of carbon
5924	5924	10 mitigation credits, and are not energy or capacity
5925	5925	11 sales contracts requiring physical delivery. Pursuant
5926	5926	12 to item (iii), contract payments shall fully deduct
5927	5927	13 the value of any monetized federal production tax
5928	5928	14 credits, credits issued pursuant to a federal clean
5929	5929	15 energy standard, and other federal credits if
5930	5930	16 applicable.
5931	5931	17 (ii) Contracts for carbon mitigation credits shall
5932	5932	18 commence with the delivery year beginning on June 1,
5933	5933	19 2022 and shall be for a term of 5 delivery years
5934	5934	20 concluding on May 31, 2027.
5935	5935	21 (iii) The price per carbon mitigation credit to be
5936	5936	22 paid under a contract for a given delivery year shall
5937	5937	23 be equal to an accepted bid price less the sum of:
5938	5938	24 (I) one of the following energy price indices,
5939	5939	25 selected by the bidder at the time of the bid for
5940	5940	26 the term of the contract:
5941	5941
5942	5942
5943	5943
5944	5944
5945	5945
5946	5946	HB2810 - 164 - LRB104 08813 BDA 18868 b
5947	5947
5948	5948
5949	5949	HB2810- 165 -LRB104 08813 BDA 18868 b HB2810 - 165 - LRB104 08813 BDA 18868 b
5950	5950	HB2810 - 165 - LRB104 08813 BDA 18868 b
5951	5951	1 (aa) the weighted-average hourly day-ahead
5952	5952	2 price for the applicable delivery year at the
5953	5953	3 busbar of all resources procured pursuant to
5954	5954	4 this subsection (d-10), weighted by actual
5955	5955	5 production from the resources; or
5956	5956	6 (bb) the projected energy price for the
5957	5957	7 PJM Interconnection, LLC Northern Illinois Hub
5958	5958	8 for the applicable delivery year determined
5959	5959	9 according to subitem (aa) of item (iii) of
5960	5960	10 subparagraph (B) of paragraph (1) of
5961	5961	11 subsection (d-5).
5962	5962	12 (II) the Base Residual Auction Capacity Price
5963	5963	13 for the ComEd zone as determined by PJM
5964	5964	14 Interconnection, LLC, divided by 24 hours per day,
5965	5965	15 for the applicable delivery year for the first 3
5966	5966	16 delivery years, and then any subsequent delivery
5967	5967	17 years unless the PJM Interconnection, LLC applies
5968	5968	18 the Minimum Offer Price Rule to participating
5969	5969	19 carbon-free energy resources because they supply
5970	5970	20 carbon mitigation credits pursuant to this Section
5971	5971	21 at which time, upon notice by the carbon-free
5972	5972	22 energy resource to the Commission and subject to
5973	5973	23 the Commission's confirmation, the value under
5974	5974	24 this subitem shall be zero, as further described
5975	5975	25 in the carbon mitigation credit procurement plan;
5976	5976	26 and
5977	5977
5978	5978
5979	5979
5980	5980
5981	5981
5982	5982	HB2810 - 165 - LRB104 08813 BDA 18868 b
5983	5983
5984	5984
5985	5985	HB2810- 166 -LRB104 08813 BDA 18868 b HB2810 - 166 - LRB104 08813 BDA 18868 b
5986	5986	HB2810 - 166 - LRB104 08813 BDA 18868 b
5987	5987	1 (III) any value of monetized federal tax
5988	5988	2 credits, direct payments, or similar subsidy
5989	5989	3 provided to the carbon-free energy resource from
5990	5990	4 any unit of government that is not already
5991	5991	5 reflected in energy prices.
5992	5992	6 If the price-per-megawatt-hour calculation
5993	5993	7 performed under item (iii) of this subparagraph (C)
5994	5994	8 for a given delivery year results in a net positive
5995	5995	9 value, then the electric utility counterparty to the
5996	5996	10 contract shall multiply such net value by the
5997	5997	11 applicable contract quantity and remit the amount to
5998	5998	12 the supplier.
5999	5999	13 To protect retail customers from retail rate
6000	6000	14 impacts that may arise upon the initiation of carbon
6001	6001	15 policy changes, if the price-per-megawatt-hour
6002	6002	16 calculation performed under item (iii) of this
6003	6003	17 subparagraph (C) for a given delivery year results in
6004	6004	18 a net negative value, then the supplier counterparty
6005	6005	19 to the contract shall multiply such net value by the
6006	6006	20 applicable contract quantity and remit such amount to
6007	6007	21 the electric utility counterparty. The electric
6008	6008	22 utility shall reflect such amounts remitted by
6009	6009	23 suppliers as a credit on its retail customer bills as
6010	6010	24 soon as practicable.
6011	6011	25 (iv) To ensure that retail customers in Northern
6012	6012	26 Illinois do not pay more for carbon mitigation credits
6013	6013
6014	6014
6015	6015
6016	6016
6017	6017
6018	6018	HB2810 - 166 - LRB104 08813 BDA 18868 b
6019	6019
6020	6020
6021	6021	HB2810- 167 -LRB104 08813 BDA 18868 b HB2810 - 167 - LRB104 08813 BDA 18868 b
6022	6022	HB2810 - 167 - LRB104 08813 BDA 18868 b
6023	6023	1 than the value such credits provide, and
6024	6024	2 notwithstanding the provisions of this subsection
6025	6025	3 (d-10), the Agency shall not accept bids for contracts
6026	6026	4 that exceed a customer protection cap equal to the
6027	6027	5 baseline costs of carbon-free energy resources.
6028	6028	6 The baseline costs for the applicable year shall
6029	6029	7 be the following:
6030	6030	8 (I) For the delivery year beginning June 1,
6031	6031	9 2022, the baseline costs shall be an amount equal
6032	6032	10 to $30.30 per megawatt-hour.
6033	6033	11 (II) For the delivery year beginning June 1,
6034	6034	12 2023, the baseline costs shall be an amount equal
6035	6035	13 to $32.50 per megawatt-hour.
6036	6036	14 (III) For the delivery year beginning June 1,
6037	6037	15 2024, the baseline costs shall be an amount equal
6038	6038	16 to $33.43 per megawatt-hour.
6039	6039	17 (IV) For the delivery year beginning June 1,
6040	6040	18 2025, the baseline costs shall be an amount equal
6041	6041	19 to $33.50 per megawatt-hour.
6042	6042	20 (V) For the delivery year beginning June 1,
6043	6043	21 2026, the baseline costs shall be an amount equal
6044	6044	22 to $34.50 per megawatt-hour.
6045	6045	23 An Environmental Protection Agency consultant
6046	6046	24 forecast, included in a report issued April 14, 2021,
6047	6047	25 projects that a carbon-free energy resource has the
6048	6048	26 opportunity to earn on average approximately $30.28
6049	6049
6050	6050
6051	6051
6052	6052
6053	6053
6054	6054	HB2810 - 167 - LRB104 08813 BDA 18868 b
6055	6055
6056	6056
6057	6057	HB2810- 168 -LRB104 08813 BDA 18868 b HB2810 - 168 - LRB104 08813 BDA 18868 b
6058	6058	HB2810 - 168 - LRB104 08813 BDA 18868 b
6059	6059	1 per megawatt-hour, for the sale of energy and capacity
6060	6060	2 during the time period between 2022 and 2027.
6061	6061	3 Therefore, the sale of carbon mitigation credits
6062	6062	4 provides the opportunity to receive an additional
6063	6063	5 amount per megawatt-hour in addition to the projected
6064	6064	6 prices for energy and capacity.
6065	6065	7 Although actual energy and capacity prices may
6066	6066	8 vary from year-to-year, the General Assembly finds
6067	6067	9 that this customer protection cap will help ensure
6068	6068	10 that the cost of carbon mitigation credits will be
6069	6069	11 less than its value, based upon the social cost of
6070	6070	12 carbon identified in the Technical Support Document
6071	6071	13 issued in February 2021 by the U.S. Interagency
6072	6072	14 Working Group on Social Cost of Greenhouse Gases and
6073	6073	15 the PJM Interconnection, LLC carbon dioxide marginal
6074	6074	16 emission rate for 2020, and that a carbon-free energy
6075	6075	17 resource receiving payment for carbon mitigation
6076	6076	18 credits receives no more than necessary to keep those
6077	6077	19 units in operation.
6078	6078	20 (D) No later than 7 days after the effective date of
6079	6079	21 this amendatory Act of the 102nd General Assembly, the
6080	6080	22 Agency shall publish its proposed carbon mitigation credit
6081	6081	23 procurement plan. The Plan shall provide that winning bids
6082	6082	24 shall be selected by taking into consideration which
6083	6083	25 resources best match public interest criteria that
6084	6084	26 include, but are not limited to, minimizing carbon dioxide
6085	6085
6086	6086
6087	6087
6088	6088
6089	6089
6090	6090	HB2810 - 168 - LRB104 08813 BDA 18868 b
6091	6091
6092	6092
6093	6093	HB2810- 169 -LRB104 08813 BDA 18868 b HB2810 - 169 - LRB104 08813 BDA 18868 b
6094	6094	HB2810 - 169 - LRB104 08813 BDA 18868 b
6095	6095	1 emissions that result from electricity consumed in
6096	6096	2 Illinois and minimizing sulfur dioxide, nitrogen oxide,
6097	6097	3 and particulate matter emissions that adversely affect the
6098	6098	4 citizens of this State. The selection of winning bids
6099	6099	5 shall also take into account the incremental environmental
6100	6100	6 benefits resulting from the procurement or procurements,
6101	6101	7 such as any existing environmental benefits that are
6102	6102	8 preserved by a procurement held under this subsection
6103	6103	9 (d-10) and would cease to exist if the procurement were
6104	6104	10 not held, including the preservation of carbon-free energy
6105	6105	11 resources. For those bidders having the same public
6106	6106	12 interest criteria score, the relative ranking of such
6107	6107	13 bidders shall be determined by price. The Plan shall
6108	6108	14 describe in detail how each public interest factor shall
6109	6109	15 be considered and weighted in the bid selection process to
6110	6110	16 ensure that the public interest criteria are applied to
6111	6111	17 the procurement. The Plan shall, to the extent practical
6112	6112	18 and permissible by federal law, ensure that successful
6113	6113	19 bidders make commercially reasonable efforts to apply for
6114	6114	20 federal tax credits, direct payments, or similar subsidy
6115	6115	21 programs that support carbon-free generation and for which
6116	6116	22 the successful bidder is eligible. Upon publishing of the
6117	6117	23 carbon mitigation credit procurement plan, copies of the
6118	6118	24 plan shall be posted and made publicly available on the
6119	6119	25 Agency's website. All interested parties shall have 7 days
6120	6120	26 following the date of posting to provide comment to the
6121	6121
6122	6122
6123	6123
6124	6124
6125	6125
6126	6126	HB2810 - 169 - LRB104 08813 BDA 18868 b
6127	6127
6128	6128
6129	6129	HB2810- 170 -LRB104 08813 BDA 18868 b HB2810 - 170 - LRB104 08813 BDA 18868 b
6130	6130	HB2810 - 170 - LRB104 08813 BDA 18868 b
6131	6131	1 Agency on the plan. All comments shall be posted to the
6132	6132	2 Agency's website. Following the end of the comment period,
6133	6133	3 but no more than 19 days later than the effective date of
6134	6134	4 this amendatory Act of the 102nd General Assembly, the
6135	6135	5 Agency shall revise the plan as necessary based on the
6136	6136	6 comments received and file its carbon mitigation credit
6137	6137	7 procurement plan with the Commission.
6138	6138	8 (E) If the Commission determines that the plan is
6139	6139	9 likely to result in the procurement of cost-effective
6140	6140	10 carbon mitigation credits, then the Commission shall,
6141	6141	11 after notice and hearing and opportunity for comment, but
6142	6142	12 no later than 42 days after the Agency filed the plan,
6143	6143	13 approve the plan or approve it with modification. For
6144	6144	14 purposes of this subsection (d-10), "cost-effective" means
6145	6145	15 carbon mitigation credits that are procured from
6146	6146	16 carbon-free energy resources at prices that are within the
6147	6147	17 limits specified in this paragraph (3). As part of the
6148	6148	18 Commission's review and acceptance or rejection of the
6149	6149	19 procurement results, the Commission shall, in its public
6150	6150	20 notice of successful bidders:
6151	6151	21 (i) identify how the selected carbon-free energy
6152	6152	22 resources satisfy the public interest criteria
6153	6153	23 described in this paragraph (3) of minimizing carbon
6154	6154	24 dioxide emissions that result from electricity
6155	6155	25 consumed in Illinois and minimizing sulfur dioxide,
6156	6156	26 nitrogen oxide, and particulate matter emissions that
6157	6157
6158	6158
6159	6159
6160	6160
6161	6161
6162	6162	HB2810 - 170 - LRB104 08813 BDA 18868 b
6163	6163
6164	6164
6165	6165	HB2810- 171 -LRB104 08813 BDA 18868 b HB2810 - 171 - LRB104 08813 BDA 18868 b
6166	6166	HB2810 - 171 - LRB104 08813 BDA 18868 b
6167	6167	1 adversely affect the citizens of this State;
6168	6168	2 (ii) specifically address how the selection of
6169	6169	3 carbon-free energy resources takes into account the
6170	6170	4 incremental environmental benefits resulting from the
6171	6171	5 procurement, including any existing environmental
6172	6172	6 benefits that are preserved by the procurements held
6173	6173	7 under this amendatory Act of the 102nd General
6174	6174	8 Assembly and would have ceased to exist if the
6175	6175	9 procurements had not been held, such as the
6176	6176	10 preservation of carbon-free energy resources;
6177	6177	11 (iii) quantify the environmental benefit of
6178	6178	12 preserving the carbon-free energy resources procured
6179	6179	13 pursuant to this subsection (d-10), including the
6180	6180	14 following:
6181	6181	15 (I) an assessment value of avoided greenhouse
6182	6182	16 gas emissions measured as the product of the
6183	6183	17 carbon-free energy resources' output over the
6184	6184	18 contract term, using generally accepted
6185	6185	19 methodologies for the valuation of avoided
6186	6186	20 emissions; and
6187	6187	21 (II) an assessment of costs of replacement
6188	6188	22 with other carbon-free energy resources and
6189	6189	23 renewable energy resources, including wind and
6190	6190	24 photovoltaic generation, based upon an assessment
6191	6191	25 of the prices paid for renewable energy credits
6192	6192	26 through programs and procurements conducted
6193	6193
6194	6194
6195	6195
6196	6196
6197	6197
6198	6198	HB2810 - 171 - LRB104 08813 BDA 18868 b
6199	6199
6200	6200
6201	6201	HB2810- 172 -LRB104 08813 BDA 18868 b HB2810 - 172 - LRB104 08813 BDA 18868 b
6202	6202	HB2810 - 172 - LRB104 08813 BDA 18868 b
6203	6203	1 pursuant to subsection (c) of Section 1-75 of this
6204	6204	2 Act, and the additional storage necessary to
6205	6205	3 produce the same or similar capability of matching
6206	6206	4 customer usage patterns.
6207	6207	5 (F) The procurements described in this paragraph (3),
6208	6208	6 including, but not limited to, the execution of all
6209	6209	7 contracts procured, shall be completed no later than
6210	6210	8 December 3, 2021. The procurement and plan approval
6211	6211	9 processes required by this paragraph (3) shall be
6212	6212	10 conducted in conjunction with the procurement and plan
6213	6213	11 approval processes required by Section 16-111.5 of the
6214	6214	12 Public Utilities Act, to the extent practicable. However,
6215	6215	13 the Agency and Commission may, as appropriate, modify the
6216	6216	14 various dates and timelines under this subparagraph and
6217	6217	15 subparagraphs (D) and (E) of this paragraph (3) to meet
6218	6218	16 the December 3, 2021 contract execution deadline.
6219	6219	17 Following the completion of such procurements, and
6220	6220	18 consistent with this paragraph (3), the Agency shall
6221	6221	19 calculate the payments to be made under each contract in a
6222	6222	20 timely fashion.
6223	6223	21 (F-1) Costs incurred by the electric utility pursuant
6224	6224	22 to a contract authorized by this subsection (d-10) shall
6225	6225	23 be deemed prudently incurred and reasonable in amount, and
6226	6226	24 the electric utility shall be entitled to full cost
6227	6227	25 recovery pursuant to a tariff or tariffs filed with the
6228	6228	26 Commission.
6229	6229
6230	6230
6231	6231
6232	6232
6233	6233
6234	6234	HB2810 - 172 - LRB104 08813 BDA 18868 b
6235	6235
6236	6236
6237	6237	HB2810- 173 -LRB104 08813 BDA 18868 b HB2810 - 173 - LRB104 08813 BDA 18868 b
6238	6238	HB2810 - 173 - LRB104 08813 BDA 18868 b
6239	6239	1 (G) The counterparty electric utility shall retire all
6240	6240	2 carbon mitigation credits used to comply with the
6241	6241	3 requirements of this subsection (d-10).
6242	6242	4 (H) If a carbon-free energy resource is sold to
6243	6243	5 another owner, the rights, obligations, and commitments
6244	6244	6 under this subsection (d-10) shall continue to the
6245	6245	7 subsequent owner.
6246	6246	8 (I) This subsection (d-10) shall become inoperative on
6247	6247	9 January 1, 2028.
6248	6248	10 (e) The draft procurement plans are subject to public
6249	6249	11 comment, as required by Section 16-111.5 of the Public
6250	6250	12 Utilities Act.
6251	6251	13 (f) The Agency shall submit the final procurement plan to
6252	6252	14 the Commission. The Agency shall revise a procurement plan if
6253	6253	15 the Commission determines that it does not meet the standards
6254	6254	16 set forth in Section 16-111.5 of the Public Utilities Act.
6255	6255	17 (g) The Agency shall assess fees to each affected utility
6256	6256	18 to recover the costs incurred in preparation of the annual
6257	6257	19 procurement plan for the utility.
6258	6258	20 (h) The Agency shall assess fees to each bidder to recover
6259	6259	21 the costs incurred in connection with a competitive
6260	6260	22 procurement process.
6261	6261	23 (i) A renewable energy credit, carbon emission credit,
6262	6262	24 zero emission credit, or carbon mitigation credit can only be
6263	6263	25 used once to comply with a single portfolio or other standard
6264	6264	26 as set forth in subsection (c), subsection (d), or subsection
6265	6265
6266	6266
6267	6267
6268	6268
6269	6269
6270	6270	HB2810 - 173 - LRB104 08813 BDA 18868 b
6271	6271
6272	6272
6273	6273	HB2810- 174 -LRB104 08813 BDA 18868 b HB2810 - 174 - LRB104 08813 BDA 18868 b
6274	6274	HB2810 - 174 - LRB104 08813 BDA 18868 b
6275	6275	1 (d-5) of this Section, respectively. A renewable energy
6276	6276	2 credit, carbon emission credit, zero emission credit, or
6277	6277	3 carbon mitigation credit cannot be used to satisfy the
6278	6278	4 requirements of more than one standard. If more than one type
6279	6279	5 of credit is issued for the same megawatt hour of energy, only
6280	6280	6 one credit can be used to satisfy the requirements of a single
6281	6281	7 standard. After such use, the credit must be retired together
6282	6282	8 with any other credits issued for the same megawatt hour of
6283	6283	9 energy.
6284	6284	10 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
6285	6285	11 103-580, eff. 12-8-23.)
6286	6286	12 Section 10. The Illinois Municipal Code is amended by
6287	6287	13 changing Section 11-13-26 as follows:
6288	6288	14 (65 ILCS 5/11-13-26)
6289	6289	15 Sec. 11-13-26. Wind farms. Notwithstanding any other
6290	6290	16 provision of law:
6291	6291	17 (a) A municipality may regulate wind farms and
6292	6292	18 electric-generating wind devices within its zoning
6293	6293	19 jurisdiction and within the 1.5 mile radius surrounding
6294	6294	20 its zoning jurisdiction. There shall be at least one
6295	6295	21 public hearing not more than 30 days prior to a siting
6296	6296	22 decision by the corporate authorities of a municipality.
6297	6297	23 Notice of the hearing shall be published in a newspaper of
6298	6298	24 general circulation in the municipality. A commercial wind
6299	6299
6300	6300
6301	6301
6302	6302
6303	6303
6304	6304	HB2810 - 174 - LRB104 08813 BDA 18868 b
6305	6305
6306	6306
6307	6307	HB2810- 175 -LRB104 08813 BDA 18868 b HB2810 - 175 - LRB104 08813 BDA 18868 b
6308	6308	HB2810 - 175 - LRB104 08813 BDA 18868 b
6309	6309	1 energy facility owner, as defined in the Renewable Energy
6310	6310	2 Facilities Agricultural Impact Mitigation Act, must enter
6311	6311	3 into an agricultural impact mitigation agreement with the
6312	6312	4 Department of Agriculture prior to the date of the
6313	6313	5 required public hearing. A commercial wind energy facility
6314	6314	6 owner seeking an extension of a permit granted by a
6315	6315	7 municipality prior to July 24, 2015 (the effective date of
6316	6316	8 Public Act 99-132) must enter into an agricultural impact
6317	6317	9 mitigation agreement with the Department of Agriculture
6318	6318	10 prior to a decision by the municipality to grant the
6319	6319	11 permit extension. A municipality may allow test wind
6320	6320	12 towers to be sited without formal approval by the
6321	6321	13 corporate authorities of the municipality. Test wind
6322	6322	14 towers must be dismantled within 3 years of installation.
6323	6323	15 For the purposes of this Section, "test wind towers" are
6324	6324	16 wind towers that are designed solely to collect wind
6325	6325	17 generation data.
6326	6326	18 (b) A municipality may not require a wind tower or
6327	6327	19 other renewable energy system that is used exclusively by
6328	6328	20 an end user to be setback more than 1.1 times the height of
6329	6329	21 the renewable energy system from the end user's property
6330	6330	22 line. A setback requirement imposed by a municipality on a
6331	6331	23 renewable energy system may not be more restrictive than
6332	6332	24 as provided under this subsection. This subsection is a
6333	6333	25 limitation of home rule powers and functions under
6334	6334	26 subsection (i) of Section 6 of Article VII of the Illinois
6335	6335
6336	6336
6337	6337
6338	6338
6339	6339
6340	6340	HB2810 - 175 - LRB104 08813 BDA 18868 b
6341	6341
6342	6342
6343	6343	HB2810- 176 -LRB104 08813 BDA 18868 b HB2810 - 176 - LRB104 08813 BDA 18868 b
6344	6344	HB2810 - 176 - LRB104 08813 BDA 18868 b
6345	6345	1 Constitution on the concurrent exercise by home rule units
6346	6346	2 of powers and functions exercised by the State.
6347	6347	3 (Source: P.A. 99-123, eff. 1-1-16; 99-132, eff. 7-24-15;
6348	6348	4 99-642, eff. 7-28-16; 100-598, eff. 6-29-18.)
6349	6349	5 Section 15. The is amended by changing Sections 1, 5, 10,
6350	6350	6 and 15 as follows:
6351	6351	7 (505 ILCS 147/1)
6352	6352	8 Sec. 1. Short title. This Act may be cited as the Renewable
6353	6353	9 Energy Facilities Agricultural Impact Mitigation Act.
6354	6354	10 (Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
6355	6355	11 (505 ILCS 147/5)
6356	6356	12 Sec. 5. Purpose. The primary purpose of this Act is to
6357	6357	13 promote the State's welfare by protecting landowners during
6358	6358	14 the construction and deconstruction of commercial renewable
6359	6359	15 energy facilities, pipelines, electric lines, and battery
6360	6360	16 energy storage systems to ensure that land affected by these
6361	6361	17 projects is restored to its pre-construction condition and
6362	6362	18 function.
6363	6363	19 (Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
6364	6364	20 (505 ILCS 147/10)
6365	6365	21 Sec. 10. Definitions. As used in this Act:
6366	6366	22 "Abandonment of a commercial wind energy facility" means
6367	6367
6368	6368
6369	6369
6370	6370
6371	6371
6372	6372	HB2810 - 176 - LRB104 08813 BDA 18868 b
6373	6373
6374	6374
6375	6375	HB2810- 177 -LRB104 08813 BDA 18868 b HB2810 - 177 - LRB104 08813 BDA 18868 b
6376	6376	HB2810 - 177 - LRB104 08813 BDA 18868 b
6377	6377	1 when deconstruction has not been completed within 18 months
6378	6378	2 after the commercial wind energy facility reaches the end of
6379	6379	3 its useful life. For purposes of this definition, a commercial
6380	6380	4 wind energy facility will be presumed to have reached the end
6381	6381	5 of its useful life if (1) no electricity is generated for a
6382	6382	6 continuous period of 12 months and (2) the commercial wind
6383	6383	7 energy facility owner fails, for a period of 6 consecutive
6384	6384	8 months, to pay the landowner amounts owed in accordance with
6385	6385	9 the underlying agreement.
6386	6386	10 "Abandonment of a commercial solar energy facility" means
6387	6387	11 when deconstruction has not been completed within 12 months
6388	6388	12 after the commercial solar energy facility reaches the end of
6389	6389	13 its useful life. For purposes of this definition, a commercial
6390	6390	14 solar energy facility shall be presumed to have reached the
6391	6391	15 end of its useful life if the commercial solar energy facility
6392	6392	16 owner fails, for a period of 6 consecutive months, to pay the
6393	6393	17 landowner amounts owed in accordance with the underlying
6394	6394	18 agreement.
6395	6395	19 "Agricultural impact mitigation agreement" means an
6396	6396	20 agreement between the pipeline owner, battery energy storage
6397	6397	21 system owner, electric line owner, commercial wind energy
6398	6398	22 facility owner, or the commercial solar energy facility owner
6399	6399	23 and the Department of Agriculture described in Section 15 of
6400	6400	24 this Act.
6401	6401	25 "Agricultural inspector" means a person hired by a
6402	6402	26 pipeline, electric line owner, battery energy storage system,
6403	6403
6404	6404
6405	6405
6406	6406
6407	6407
6408	6408	HB2810 - 177 - LRB104 08813 BDA 18868 b
6409	6409
6410	6410
6411	6411	HB2810- 178 -LRB104 08813 BDA 18868 b HB2810 - 178 - LRB104 08813 BDA 18868 b
6412	6412	HB2810 - 178 - LRB104 08813 BDA 18868 b
6413	6413	1 or commercial solar or wind energy facility and approved by
6414	6414	2 the Department who will work with the facility throughout the
6415	6415	3 construction and deconstruction phases to ensure compliance
6416	6416	4 with the provisions of the agricultural impact mitigation
6417	6417	5 agreement.
6418	6418	6 "Agricultural land" means real property or land used for
6419	6419	7 cropland, hay land, pasture, managed woodlands, truck gardens,
6420	6420	8 farm-to-market operations, garden-to-market operations,
6421	6421	9 farmsteads, commercial agriculture-related facilities,
6422	6422	10 feedlots, livestock confinement systems, land on which farm
6423	6423	11 buildings are located, and land in government set-aside
6424	6424	12 programs.
6425	6425	13 "Battery energy storage system" means a facility or
6426	6426	14 devices that enable energy from renewable energy facilities,
6427	6427	15 like solar and wind energy, to be stored and discharged when
6428	6428	16 needed. "Battery energy storage system" includes all
6429	6429	17 components of the system necessary to receive, store, and
6430	6430	18 discharge energy.
6431	6431	19 "Battery energy storage system owner" means a private
6432	6432	20 commercial enterprise that owns a battery energy storage
6433	6433	21 system.
6434	6434	22 "Commercial renewable energy facility " means a commercial
6435	6435	23 wind energy facility or commercial solar energy facility as
6436	6436	24 defined in this Act.
6437	6437	25 "Commercial solar energy facility" means a commercial
6438	6438	26 solar energy system, as defined in Section 10-720 of the
6439	6439
6440	6440
6441	6441
6442	6442
6443	6443
6444	6444	HB2810 - 178 - LRB104 08813 BDA 18868 b
6445	6445
6446	6446
6447	6447	HB2810- 179 -LRB104 08813 BDA 18868 b HB2810 - 179 - LRB104 08813 BDA 18868 b
6448	6448	HB2810 - 179 - LRB104 08813 BDA 18868 b
6449	6449	1 Property Tax Code solar energy conversion facility equal to or
6450	6450	2 greater than 500 kilowatts in total nameplate capacity,
6451	6451	3 including a solar energy conversion facility seeking an
6452	6452	4 extension of a permit to construct granted by a county or
6453	6453	5 municipality before the effective date of this amendatory Act
6454	6454	6 of the 100th General Assembly. "Commercial solar energy
6455	6455	7 facility" does not include a utility-scale solar energy
6456	6456	8 facility being constructed at a site that was eligible to
6457	6457	9 participate in a procurement event conducted by the Illinois
6458	6458	10 Power Agency under subsection (c-5) of Section 1-75 of the
6459	6459	11 Illinois Power Agency Act include a solar energy conversion
6460	6460	12 facility: (1) for which a permit to construct has been issued
6461	6461	13 before the effective date of this amendatory Act of the 100th
6462	6462	14 General Assembly; (2) that is located on land owned by the
6463	6463	15 commercial solar energy facility owner; (3) that was
6464	6464	16 constructed before the effective date of this amendatory Act
6465	6465	17 of the 100th General Assembly; or (4) that is located on the
6466	6466	18 customer side of the customer's electric meter and is
6467	6467	19 primarily used to offset that customer's electricity load and
6468	6468	20 is limited in nameplate capacity to less than or equal to 2,000
6469	6469	21 kilowatts.
6470	6470	22 "Commercial solar energy facility owner" means a private
6471	6471	23 commercial enterprise that owns a commercial solar energy
6472	6472	24 facility. A commercial solar energy facility owner is not nor
6473	6473	25 shall it be deemed to be a public utility as defined in the
6474	6474	26 Public Utilities Act.
6475	6475
6476	6476
6477	6477
6478	6478
6479	6479
6480	6480	HB2810 - 179 - LRB104 08813 BDA 18868 b
6481	6481
6482	6482
6483	6483	HB2810- 180 -LRB104 08813 BDA 18868 b HB2810 - 180 - LRB104 08813 BDA 18868 b
6484	6484	HB2810 - 180 - LRB104 08813 BDA 18868 b
6485	6485	1 "Commercial wind energy facility" means a wind energy
6486	6486	2 conversion facility of equal or greater than 500 kilowatts in
6487	6487	3 total nameplate generating capacity. "Commercial wind energy
6488	6488	4 facility" includes a wind energy conversion facility seeking
6489	6489	5 an extension of a permit to construct granted by a county or
6490	6490	6 municipality before the effective date of this Act.
6491	6491	7 "Commercial wind energy facility" does not include a wind
6492	6492	8 energy conversion facility: (1) that has submitted a complete
6493	6493	9 permit application to a county or municipality and for which
6494	6494	10 the hearing on the completed application has commenced on the
6495	6495	11 date provided in the public hearing notice, which must be
6496	6496	12 before the effective date of this Act; (2) for which a permit
6497	6497	13 to construct has been issued before the effective date of this
6498	6498	14 Act; or (3) that was constructed before the effective date of
6499	6499	15 this Act.
6500	6500	16 "Commercial wind energy facility owner" means a private
6501	6501	17 commercial enterprise that owns or operates a commercial wind
6502	6502	18 energy facility. A commercial wind energy facility owner is
6503	6503	19 not nor shall it be deemed to be a public utility as defined in
6504	6504	20 the Public Utilities Act.
6505	6505	21 "Construction" means the installation, preparation for
6506	6506	22 installation, or repair of a pipeline, battery energy storage
6507	6507	23 system, electric line, or commercial renewable energy
6508	6508	24 facility.
6509	6509	25 "County" means the county where the pipeline, battery
6510	6510	26 energy storage system, electric line, or commercial renewable
6511	6511
6512	6512
6513	6513
6514	6514
6515	6515
6516	6516	HB2810 - 180 - LRB104 08813 BDA 18868 b
6517	6517
6518	6518
6519	6519	HB2810- 181 -LRB104 08813 BDA 18868 b HB2810 - 181 - LRB104 08813 BDA 18868 b
6520	6520	HB2810 - 181 - LRB104 08813 BDA 18868 b
6521	6521	1 energy facility is located.
6522	6522	2 "Deconstruction" means the removal of a battery energy
6523	6523	3 storage system or commercial renewable energy facility from
6524	6524	4 the property of a landowner and the restoration of that
6525	6525	5 property as provided in the agricultural impact mitigation
6526	6526	6 agreement.
6527	6527	7 "Department" means the Department of Agriculture.
6528	6528	8 "Electric line" means any part of electric power
6529	6529	9 facilities used to transmit or supply electricity that
6530	6530	10 requires a certificate issued by the Illinois Commerce
6531	6531	11 Commission and includes substations, switching stations,
6532	6532	12 poles, towers, and associated appurtenances.
6533	6533	13 "Electric line owner" means a private commercial
6534	6534	14 enterprise that owns an electric line.
6535	6535	15 "Landowner" means any person, company, or entity who owns
6536	6536	16 agricultural land in the State of Illinois (1) with an
6537	6537	17 ownership interest in property that is and from whom the owner
6538	6538	18 of a pipeline, electric line, battery energy storage system,
6539	6539	19 or commercial renewable energy facility is seeking, or has
6540	6540	20 obtained, a temporary or permanent easement. "Landowner"
6541	6541	21 includes any person, company, or entity legally authorized by
6542	6542	22 a landowner to make decisions regarding such property used for
6543	6543	23 agricultural purposes and (2) that is a party to an underlying
6544	6544	24 agreement.
6545	6545	25 "Pipeline" means any pipe or appurtenance that crosses or
6546	6546	26 is located in Illinois that is associated with the conveyance
6547	6547
6548	6548
6549	6549
6550	6550
6551	6551
6552	6552	HB2810 - 181 - LRB104 08813 BDA 18868 b
6553	6553
6554	6554
6555	6555	HB2810- 182 -LRB104 08813 BDA 18868 b HB2810 - 182 - LRB104 08813 BDA 18868 b
6556	6556	HB2810 - 182 - LRB104 08813 BDA 18868 b
6557	6557	1 of oil, natural gas, propane, carbon dioxide, or other medium
6558	6558	2 that requires a certificate issued by the Federal Regulatory
6559	6559	3 Commission, the Pipeline and Hazardous Materials Safety
6560	6560	4 Administration, or a certificate issued by the Illinois
6561	6561	5 Commerce Commission.
6562	6562	6 "Pipeline owner" means a private commercial enterprise or
6563	6563	7 any public utility that owns a pipeline.
6564	6564	8 "Project" means any planned enterprise or undertaking
6565	6565	9 under this Act that requires an agricultural impact mitigation
6566	6566	10 agreement.
6567	6567	11 "Project area" means the geographic footprint or property
6568	6568	12 boundary of the project within which construction, operation,
6569	6569	13 and maintenance will occur, and includes setback zones as
6570	6570	14 required by local, State, or federal regulations.
6571	6571	15 "Project owner" means any owner of the project, including
6572	6572	16 a pipeline owner, a battery energy storage system owner, an
6573	6573	17 electric line owner, or a commercial renewable energy facility
6574	6574	18 owner of a commercial wind energy facility or a commercial
6575	6575	19 solar energy facility.
6576	6576	20 "Underlying agreement" means the written agreement with a
6577	6577	21 landowner, including, but not limited to, an easement, option,
6578	6578	22 lease, or license, under the terms of which another person has
6579	6579	23 constructed, constructs, or intends to construct a pipeline,
6580	6580	24 battery energy storage system, electric line, or commercial
6581	6581	25 wind energy facility or commercial solar energy facility on
6582	6582	26 the property of the landowner.
6583	6583
6584	6584
6585	6585
6586	6586
6587	6587
6588	6588	HB2810 - 182 - LRB104 08813 BDA 18868 b
6589	6589
6590	6590
6591	6591	HB2810- 183 -LRB104 08813 BDA 18868 b HB2810 - 183 - LRB104 08813 BDA 18868 b
6592	6592	HB2810 - 183 - LRB104 08813 BDA 18868 b
6593	6593	1 (Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
6594	6594	2 (505 ILCS 147/15)
6595	6595	3 Sec. 15. Agricultural impact mitigation agreement.
6596	6596	4 (a) A pipeline owner, a battery energy storage system
6597	6597	5 owner, an electric line owner, a commercial renewable energy
6598	6598	6 facility owner of a commercial wind energy facility, or a
6599	6599	7 commercial solar energy facility that is located on landowner
6600	6600	8 property shall enter into an agricultural impact mitigation
6601	6601	9 agreement with the Department. The agricultural impact
6602	6602	10 agreement shall outline outlining construction and
6603	6603	11 deconstruction standards and policies designed to preserve the
6604	6604	12 integrity of any agricultural land that is impacted by the
6605	6605	13 construction or deconstruction of a pipeline, battery energy
6606	6606	14 storage system, electric line, or commercial renewable energy
6607	6607	15 facility construction and deconstruction. The construction and
6608	6608	16 deconstruction of any pipeline, battery energy storage system,
6609	6609	17 electric line, or commercial renewable solar energy facility
6610	6610	18 shall be in conformance with the Department's standard
6611	6611	19 agricultural impact mitigation agreement referenced in
6612	6612	20 subsection (g) (f) of this Section. Except as provided in
6613	6613	21 subsections subsection (a-5), (a-10), and (a-15) of this
6614	6614	22 Section, the terms and conditions of the Department's standard
6615	6615	23 agricultural impact mitigation agreement are subject to and
6616	6616	24 may be modified by an underlying agreement between the
6617	6617	25 landowner and the project owner commercial solar energy
6618	6618
6619	6619
6620	6620
6621	6621
6622	6622
6623	6623	HB2810 - 183 - LRB104 08813 BDA 18868 b
6624	6624
6625	6625
6626	6626	HB2810- 184 -LRB104 08813 BDA 18868 b HB2810 - 184 - LRB104 08813 BDA 18868 b
6627	6627	HB2810 - 184 - LRB104 08813 BDA 18868 b
6628	6628	1 facility owner.
6629	6629	2 (a-5) Prior to the commencement of construction, a
6630	6630	3 commercial solar energy facility owner shall submit to the
6631	6631	4 county in which the commercial solar facility is to be located
6632	6632	5 a deconstruction plan. A commercial solar energy facility
6633	6633	6 owner shall provide the county with an appropriate financial
6634	6634	7 assurance mechanism consistent with the Department's standard
6635	6635	8 agricultural impact mitigation agreement for and to assure
6636	6636	9 deconstruction in the event of an abandonment of a commercial
6637	6637	10 solar energy facility.
6638	6638	11 (a-10) Prior to the commencement of construction, a
6639	6639	12 commercial wind energy facility owner shall submit to the
6640	6640	13 county in which the commercial wind energy facility is to be
6641	6641	14 located a deconstruction plan. A commercial wind energy
6642	6642	15 facility owner shall provide the county with an appropriate
6643	6643	16 financial assurance mechanism consistent with the Department's
6644	6644	17 standard agricultural impact mitigation agreement to assure
6645	6645	18 deconstruction in the event of an abandonment of a commercial
6646	6646	19 wind energy facility.
6647	6647	20 (a-15) Prior to the commencement of construction, a
6648	6648	21 battery energy storage system owner shall submit to the county
6649	6649	22 in which the battery energy storage system is to be located a
6650	6650	23 deconstruction plan. A battery energy storage system owner
6651	6651	24 shall provide the county with an appropriate financial
6652	6652	25 assurance mechanism consistent with the Department's standard
6653	6653	26 agricultural impact mitigation agreement to assure
6654	6654
6655	6655
6656	6656
6657	6657
6658	6658
6659	6659	HB2810 - 184 - LRB104 08813 BDA 18868 b
6660	6660
6661	6661
6662	6662	HB2810- 185 -LRB104 08813 BDA 18868 b HB2810 - 185 - LRB104 08813 BDA 18868 b
6663	6663	HB2810 - 185 - LRB104 08813 BDA 18868 b
6664	6664	1 deconstruction in the event of an abandonment of a battery
6665	6665	2 energy storage system.
6666	6666	3 (a-20) Prior to the commencement of construction, a
6667	6667	4 pipeline owner shall submit an executed agricultural impact
6668	6668	5 mitigation agreement to the Federal Energy Regulatory
6669	6669	6 Commission or to the Pipeline and Hazardous Material Safety
6670	6670	7 Administration of the federal Department of Transportation.
6671	6671	8 The executed agricultural impact mitigation agreement shall be
6672	6672	9 included as part of the pipeline's submissions to the Federal
6673	6673	10 Energy Regulatory Commission or the Pipeline and Hazardous
6674	6674	11 Material Safety Administration, and the pipeline shall request
6675	6675	12 the Federal Energy Regulatory Commission or the Pipeline and
6676	6676	13 Hazardous Material Safety Administration to include a
6677	6677	14 statement affirming the pipeline's adherence to the
6678	6678	15 agricultural impact mitigation agreement's construction
6679	6679	16 standards and policies in any environmental assessment or
6680	6680	17 environmental impact statement that may be prepared on the
6681	6681	18 pipeline.
6682	6682	19 (a-25) Prior to the commencement of construction, an
6683	6683	20 electric line owner shall submit to the Illinois Commerce
6684	6684	21 Commission an executed agricultural impact mitigation
6685	6685	22 agreement. The electric line owner shall include a statement
6686	6686	23 affirming the electric line's adherence to the agricultural
6687	6687	24 impact mitigation agreement's construction standards and
6688	6688	25 policies in any environmental assessment or environmental
6689	6689	26 impact statement that may be prepared on the electric line.
6690	6690
6691	6691
6692	6692
6693	6693
6694	6694
6695	6695	HB2810 - 185 - LRB104 08813 BDA 18868 b
6696	6696
6697	6697
6698	6698	HB2810- 186 -LRB104 08813 BDA 18868 b HB2810 - 186 - LRB104 08813 BDA 18868 b
6699	6699	HB2810 - 186 - LRB104 08813 BDA 18868 b
6700	6700	1 (a-30) A battery energy storage system owner shall include
6701	6701	2 a statement affirming the battery energy storage system's
6702	6702	3 adherence to the agricultural impact mitigation agreement's
6703	6703	4 construction standards and policies in any environmental
6704	6704	5 assessment or environmental impact statement that may be
6705	6705	6 prepared on the battery energy storage system. A battery
6706	6706	7 energy storage system owner shall comply with all applicable
6707	6707	8 local, State, and federal regulations.
6708	6708	9 (b) The agricultural impact mitigation agreement for a
6709	6709	10 commercial wind energy facility shall include, but is not
6710	6710	11 limited to, such items as restoration of agricultural land
6711	6711	12 affected by construction, deconstruction (including upon
6712	6712	13 abandonment of a commercial wind energy facility),
6713	6713	14 construction staging, and storage areas; support structures;
6714	6714	15 aboveground facilities; guy wires and anchors; underground
6715	6715	16 cabling depth; topsoil replacement; protection and repair of
6716	6716	17 agricultural drainage tiles; rock removal; repair of
6717	6717	18 compaction and rutting; construction during wet weather; land
6718	6718	19 leveling; prevention of soil erosion; repair of damaged soil
6719	6719	20 conservation practices; compensation for damages to private
6720	6720	21 property; clearing of trees and brush; interference with
6721	6721	22 irrigation systems; access roads; weed control; pumping of
6722	6722	23 water from open excavations; advance notice of access to
6723	6723	24 private property; indemnification of landowners; and
6724	6724	25 deconstruction plans and financial assurance for
6725	6725	26 deconstruction (including upon abandonment of a commercial
6726	6726
6727	6727
6728	6728
6729	6729
6730	6730
6731	6731	HB2810 - 186 - LRB104 08813 BDA 18868 b
6732	6732
6733	6733
6734	6734	HB2810- 187 -LRB104 08813 BDA 18868 b HB2810 - 187 - LRB104 08813 BDA 18868 b
6735	6735	HB2810 - 187 - LRB104 08813 BDA 18868 b
6736	6736	1 wind energy facility).
6737	6737	2 (b-5) The agricultural impact mitigation agreement for a
6738	6738	3 commercial solar energy facility shall include, but is not
6739	6739	4 limited to, such items as restoration of agricultural land
6740	6740	5 affected by construction, deconstruction (including upon
6741	6741	6 abandonment of a commercial solar energy facility); support
6742	6742	7 structures; aboveground facilities; guy wires and anchors;
6743	6743	8 underground cabling depth; topsoil removal and replacement;
6744	6744	9 rerouting and permanent repair of agricultural drainage tiles;
6745	6745	10 rock removal; repair of compaction and rutting; construction
6746	6746	11 during wet weather; land leveling; prevention of soil erosion;
6747	6747	12 repair of damaged soil conservation practices; compensation
6748	6748	13 for damages to private property; clearing of trees and brush;
6749	6749	14 access roads; weed control; advance notice of access to
6750	6750	15 private property; indemnification of landowners; and
6751	6751	16 deconstruction plans and financial assurance for
6752	6752	17 deconstruction (including upon abandonment of a commercial
6753	6753	18 solar energy facility). The commercial solar energy facility
6754	6754	19 owner shall enter into one agricultural impact mitigation
6755	6755	20 agreement for each commercial solar energy facility.
6756	6756	21 (b-10) The agricultural impact mitigation agreement for a
6757	6757	22 battery energy storage system shall include, but is not
6758	6758	23 limited to, such items as restoration of agricultural land
6759	6759	24 affected by construction; deconstruction (including upon
6760	6760	25 abandonment of a battery energy storage system); support
6761	6761	26 structures and components; aboveground facilities; underground
6762	6762
6763	6763
6764	6764
6765	6765
6766	6766
6767	6767	HB2810 - 187 - LRB104 08813 BDA 18868 b
6768	6768
6769	6769
6770	6770	HB2810- 188 -LRB104 08813 BDA 18868 b HB2810 - 188 - LRB104 08813 BDA 18868 b
6771	6771	HB2810 - 188 - LRB104 08813 BDA 18868 b
6772	6772	1 cabling depth; topsoil removal and replacement; rerouting and
6773	6773	2 permanent repair of agricultural drainage tile; rock removal;
6774	6774	3 repair of compaction and rutting; construction during wet
6775	6775	4 weather; land leveling; prevention of soil erosion; repair of
6776	6776	5 damaged soil conservation practices; compensation for damages
6777	6777	6 to private property; clearing of trees and brush; access
6778	6778	7 roads; weed control; advance notice of access to private
6779	6779	8 property; indemnification of landowners; and deconstruction
6780	6780	9 plans and financial assurance for deconstruction (including
6781	6781	10 upon abandonment of a battery storage facility). The battery
6782	6782	11 energy storage system owner shall enter into one agricultural
6783	6783	12 impact mitigation agreement for each battery energy storage
6784	6784	13 system.
6785	6785	14 (b-15) The agricultural impact mitigation agreement of a
6786	6786	15 pipeline shall include, but is not limited to, such items as
6787	6787	16 restoration of agricultural land affected by construction and
6788	6788	17 repair of the pipeline; aboveground facilities; underground
6789	6789	18 pipeline depth; topsoil removal and replacement; rerouting and
6790	6790	19 permanent repair of agricultural drainage tiles; interference
6791	6791	20 with irrigation systems; weed control; rock removal; repair of
6792	6792	21 compaction and rutting; construction during wet weather; land
6793	6793	22 leveling; prevention of soil erosion; repair of damaged soil
6794	6794	23 conservation practices; compensation for damages to private
6795	6795	24 property; clearing of trees and brush; access roads; advance
6796	6796	25 notice to access to private property; and indemnification of
6797	6797	26 landowners. The pipeline owner shall enter into one
6798	6798
6799	6799
6800	6800
6801	6801
6802	6802
6803	6803	HB2810 - 188 - LRB104 08813 BDA 18868 b
6804	6804
6805	6805
6806	6806	HB2810- 189 -LRB104 08813 BDA 18868 b HB2810 - 189 - LRB104 08813 BDA 18868 b
6807	6807	HB2810 - 189 - LRB104 08813 BDA 18868 b
6808	6808	1 agricultural impact mitigation agreement for each pipeline.
6809	6809	2 (b-20) The agricultural impact mitigation agreement for an
6810	6810	3 electric line shall include, but is not limited to, such items
6811	6811	4 as restoration of agricultural land affected by construction
6812	6812	5 and repair of an electric line; support structures;
6813	6813	6 aboveground facilities; rerouting and permanent repair of
6814	6814	7 agricultural drainage tiles; interference with irrigation
6815	6815	8 systems; weed control; rock removal; repair of compaction and
6816	6816	9 rutting; construction during wet weather; land leveling;
6817	6817	10 prevention of soil erosion; repair of damaged soil
6818	6818	11 conservation practices; compensation for damages to private
6819	6819	12 property; clearing of trees and brush; access roads; advance
6820	6820	13 notice to access to private property; and indemnification of
6821	6821	14 landowners. The electric line owner shall enter into one
6822	6822	15 agricultural impact mitigation agreement for each electric
6823	6823	16 line.
6824	6824	17 (c) For commercial wind energy facility owners seeking a
6825	6825	18 permit from a county or municipality for the construction of a
6826	6826	19 commercial wind energy facility, the agricultural impact
6827	6827	20 mitigation agreement shall be entered into prior to the public
6828	6828	21 hearing required prior to a siting decision of a county or
6829	6829	22 municipality regarding the commercial wind energy facility.
6830	6830	23 The agricultural impact mitigation agreement is binding on any
6831	6831	24 subsequent commercial wind energy facility owner that takes
6832	6832	25 ownership of the commercial wind energy facility that is the
6833	6833	26 subject of the agreement.
6834	6834
6835	6835
6836	6836
6837	6837
6838	6838
6839	6839	HB2810 - 189 - LRB104 08813 BDA 18868 b
6840	6840
6841	6841
6842	6842	HB2810- 190 -LRB104 08813 BDA 18868 b HB2810 - 190 - LRB104 08813 BDA 18868 b
6843	6843	HB2810 - 190 - LRB104 08813 BDA 18868 b
6844	6844	1 (c-5) A commercial solar energy facility owner shall, not
6845	6845	2 less than 45 days prior to commencement of actual
6846	6846	3 construction, submit to the Department a standard agricultural
6847	6847	4 impact mitigation agreement as referenced in subsection (f) of
6848	6848	5 this Section signed by the commercial solar energy facility
6849	6849	6 owner and including all information required by the
6850	6850	7 Department. The commercial solar energy facility owner shall
6851	6851	8 provide either a copy of that submitted agreement or a copy of
6852	6852	9 the fully executed project-specific agricultural impact
6853	6853	10 mitigation agreement to the landowner not less than 30 days
6854	6854	11 prior to the commencement of construction. The agricultural
6855	6855	12 impact mitigation agreement is binding on any subsequent
6856	6856	13 commercial solar energy facility owner that takes ownership of
6857	6857	14 the commercial solar energy facility that is the subject of
6858	6858	15 the agreement.
6859	6859	16 (c-10) An electric line owner shall incorporate by
6860	6860	17 reference the terms of the agricultural impact mitigation
6861	6861	18 agreement in underlying agreements executed with landowners on
6862	6862	19 privately owned agricultural land in Illinois and, not less
6863	6863	20 than 45 days prior to the commencement of construction,
6864	6864	21 provide the Department with a current list of affected
6865	6865	22 landowners and tenants.
6866	6866	23 (c-15) A pipeline owner shall incorporate by reference the
6867	6867	24 terms of the agricultural impact mitigation agreement in
6868	6868	25 underlying agreements executed with landowners on privately
6869	6869	26 owned agricultural land in Illinois and, not less than 45 days
6870	6870
6871	6871
6872	6872
6873	6873
6874	6874
6875	6875	HB2810 - 190 - LRB104 08813 BDA 18868 b
6876	6876
6877	6877
6878	6878	HB2810- 191 -LRB104 08813 BDA 18868 b HB2810 - 191 - LRB104 08813 BDA 18868 b
6879	6879	HB2810 - 191 - LRB104 08813 BDA 18868 b
6880	6880	1 prior to the commencement of construction, provide the
6881	6881	2 Department with a current list of affected landowners and
6882	6882	3 tenants.
6883	6883	4 (c-20) A battery energy storage system owner shall
6884	6884	5 incorporate by reference the terms of the agricultural impact
6885	6885	6 mitigation agreement in underlying agreements executed with
6886	6886	7 landowners on privately owned agricultural land in Illinois
6887	6887	8 and, not less than 45 days prior to the commencement of
6888	6888	9 construction, provide the Department with a current list of
6889	6889	10 affected landowners and tenants.
6890	6890	11 (d) If a commercial renewable energy facility owner seeks
6891	6891	12 an extension of a permit granted by a county or municipality
6892	6892	13 for the construction of a commercial wind energy facility
6893	6893	14 prior to the effective date of this Act, the agricultural
6894	6894	15 impact mitigation agreement shall be entered into prior to a
6895	6895	16 decision by the county or municipality to grant the permit
6896	6896	17 extension.
6897	6897	18 (e) Each project shall have agricultural inspectors. The
6898	6898	19 Department shall establish, by rule, the number of
6899	6899	20 agricultural inspectors each project shall require.
6900	6900	21 (e-5) Prior to commencement of construction of a project,
6901	6901	22 the project owner shall submit the names, qualifications, and
6902	6902	23 other relevant information of the project owner's chosen
6903	6903	24 agricultural inspectors to the Department for approval. No
6904	6904	25 construction on a project may commence until the Department
6905	6905	26 has approved the requisite number of agricultural inspectors
6906	6906
6907	6907
6908	6908
6909	6909
6910	6910
6911	6911	HB2810 - 191 - LRB104 08813 BDA 18868 b
6912	6912
6913	6913
6914	6914	HB2810- 192 -LRB104 08813 BDA 18868 b HB2810 - 192 - LRB104 08813 BDA 18868 b
6915	6915	HB2810 - 192 - LRB104 08813 BDA 18868 b
6916	6916	1 for the project. The Department shall establish, by rule, the
6917	6917	2 minimum qualifications of an agricultural inspector.
6918	6918	3 (e-10) The project owner shall be responsible for the cost
6919	6919	4 of work performed by an agricultural inspector, including, but
6920	6920	5 not limited to, salary, wages, bonuses, benefits, and any
6921	6921	6 other compensation. Upon approval by the Department of an
6922	6922	7 agricultural inspector, the project owner shall submit to the
6923	6923	8 Department the estimated salary or wages to be paid to the
6924	6924	9 agricultural inspector for work on the project.
6925	6925	10 (e-15) Agricultural inspectors shall monitor the project
6926	6926	11 owner's compliance with all provisions of the agricultural
6927	6927	12 impact mitigation agreement throughout all phases of the
6928	6928	13 project, including, but not limited to, construction and
6929	6929	14 deconstruction phases and shall report all instances of
6930	6930	15 noncompliance to the Department. Upon a finding of
6931	6931	16 noncompliance with any provision of the agricultural impact
6932	6932	17 mitigation agreement, an agricultural inspector may
6933	6933	18 temporarily halt construction, deconstruction, or any other
6934	6934	19 activities on a project. The Department shall have the sole
6935	6935	20 authority to lift any such temporary halt implemented by an
6936	6936	21 agricultural inspector when, in the Department's discretion,
6937	6937	22 the noncompliance is deemed resolved.
6938	6938	23 (e-20) The Department may temporarily halt construction,
6939	6939	24 deconstruction, or any other activities on a project upon its
6940	6940	25 own finding of noncompliance by the project owner with any
6941	6941	26 provision of the agricultural impact mitigation agreement. Any
6942	6942
6943	6943
6944	6944
6945	6945
6946	6946
6947	6947	HB2810 - 192 - LRB104 08813 BDA 18868 b
6948	6948
6949	6949
6950	6950	HB2810- 193 -LRB104 08813 BDA 18868 b HB2810 - 193 - LRB104 08813 BDA 18868 b
6951	6951	HB2810 - 193 - LRB104 08813 BDA 18868 b
6952	6952	1 such temporary halt implemented by the Department shall remain
6953	6953	2 in place until, in the Department's discretion, the
6954	6954	3 noncompliance is deemed resolved.
6955	6955	4 (e-25) Agricultural inspectors shall train all related
6956	6956	5 contractors and subcontractors on the terms of the
6957	6957	6 agricultural impact mitigation agreement and provide a copy of
6958	6958	7 the agricultural impact mitigation agreement to them; maintain
6959	6959	8 contact with the affected landowners and farm tenants in
6960	6960	9 conjunction with the project owner's right-of-way agents and
6961	6961	10 contractors, as well as local soil and water conservation
6962	6962	11 district personnel concerning farm resources and management
6963	6963	12 matters pertinent to the agricultural operations and the
6964	6964	13 site-specific implementation of the agricultural impact
6965	6965	14 mitigation agreement; and conduct inspections on the project
6966	6966	15 to monitor for compliance.
6967	6967	16 (e-30) A project owner may not remove an agricultural
6968	6968	17 inspector from a project without just cause. Just cause shall
6969	6969	18 not include an agricultural inspector's good faith efforts to
6970	6970	19 comply with this Act or good faith implementation of a
6971	6971	20 temporary halt as described in subsection (e-15).
6972	6972	21 (e-35) The Department may remove an agricultural inspector
6973	6973	22 from a project for just cause, including, but not limited to,
6974	6974	23 failure to report noncompliance by the project owner with the
6975	6975	24 agricultural impact mitigation agreement. If an agricultural
6976	6976	25 inspector is removed from a project under either this
6977	6977	26 subsection or subsection (e-30), the project owner shall
6978	6978
6979	6979
6980	6980
6981	6981
6982	6982
6983	6983	HB2810 - 193 - LRB104 08813 BDA 18868 b
6984	6984
6985	6985
6986	6986	HB2810- 194 -LRB104 08813 BDA 18868 b HB2810 - 194 - LRB104 08813 BDA 18868 b
6987	6987	HB2810 - 194 - LRB104 08813 BDA 18868 b
6988	6988	1 submit to the Department for approval a qualified replacement
6989	6989	2 within 45 days of the previous individual being removed.
6990	6990	3 (f) (e) The Department shall have the authority to adopt
6991	6991	4 rules, in accordance with the Illinois Administrative
6992	6992	5 Procedure Act, that are necessary and appropriate may adopt
6993	6993	6 rules that are necessary and appropriate for the
6994	6994	7 implementation and administration of agricultural impact
6995	6995	8 mitigation agreements as required under this Act.
6996	6996	9 (g) (f) The Department shall make available on its website
6997	6997	10 a standard agricultural impact mitigation agreement applicable
6998	6998	11 to all commercial solar energy facilities within 60 days after
6999	6999	12 the effective date of this amendatory Act of the 100th General
7000	7000	13 Assembly. The Department shall make available on its website a
7001	7001	14 standard agricultural impact mitigation agreement applicable
7002	7002	15 to all pipeline, electric line, battery energy storage system,
7003	7003	16 and commercial solar and wind energy facilities within 60 days
7004	7004	17 after the effective date of this amendatory Act of the 104th
7005	7005	18 General Assembly. The Department may revise its standard
7006	7006	19 agricultural impact mitigation agreement as it deems
7007	7007	20 necessary. The Department may require additional
7008	7008	21 project-specific provisions in any agricultural impact
7009	7009	22 mitigation agreement as it deems necessary to preserve the
7010	7010	23 integrity of any agricultural land that is impacted by the
7011	7011	24 project.
7012	7012	25 (h) If a project owner fails or refuses to enter into the
7013	7013	26 agricultural impact mitigation as required by subsection (a)
7014	7014
7015	7015
7016	7016
7017	7017
7018	7018
7019	7019	HB2810 - 194 - LRB104 08813 BDA 18868 b
7020	7020
7021	7021
7022	7022	HB2810- 195 -LRB104 08813 BDA 18868 b HB2810 - 195 - LRB104 08813 BDA 18868 b
7023	7023	HB2810 - 195 - LRB104 08813 BDA 18868 b
7024	7024	1 and construction on the project has commenced, the Department
7025	7025	2 may temporarily halt construction on the project until the
7026	7026	3 required agricultural impact mitigation agreement is executed
7027	7027	4 between the project owner and the Department.
7028	7028	5 (i) In the absence of an underlying agreement, such as
7029	7029	6 instances when a project is authorized to proceed by court
7030	7030	7 order, the Department's standard agricultural impact
7031	7031	8 mitigation agreement and its terms are not negotiable and may
7032	7032	9 not be altered without written landowner consent, approved
7033	7033	10 compensation, or both. The agricultural impact mitigation
7034	7034	11 agreement shall be used in its entirety for all phases of the
7035	7035	12 project if no mutually agreeable underlying agreement is in
7036	7036	13 place.
7037	7037	14 (j) (g) Nothing in this amendatory Act of the 100th
7038	7038	15 General Assembly and nothing in an agricultural impact
7039	7039	16 mitigation agreement shall be construed to apply to or
7040	7040	17 otherwise impair an underlying agreement for a commercial
7041	7041	18 solar energy facility entered into prior to the effective date
7042	7042	19 of this amendatory Act of the 100th General Assembly. Nothing
7043	7043	20 in this amendatory Act of the 104th General Assembly and
7044	7044	21 nothing in an agricultural impact mitigation agreement shall
7045	7045	22 be construed to apply to or otherwise impair an underlying
7046	7046	23 agreement for a pipeline, electric line, battery energy
7047	7047	24 storage system, or commercial solar or wind energy facility
7048	7048	25 entered into prior to the effective date of this amendatory
7049	7049	26 Act of the 104th General Assembly.
7050	7050
7051	7051
7052	7052
7053	7053
7054	7054
7055	7055	HB2810 - 195 - LRB104 08813 BDA 18868 b
7056	7056
7057	7057
7058	7058	HB2810- 196 -LRB104 08813 BDA 18868 b HB2810 - 196 - LRB104 08813 BDA 18868 b
7059	7059	HB2810 - 196 - LRB104 08813 BDA 18868 b
7060	7060	1 (Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
7061	7061
7062	7062
7063	7063
7064	7064
7065	7065
7066	7066	HB2810 - 196 - LRB104 08813 BDA 18868 b