Illinois 2025-2026 Regular Session

Illinois House Bill HB3258 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 HB3258 Introduced , by Rep. Brad Halbrook SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-75 Amends the Illinois Power Agency Act. Removes language regarding: diversity requirements related to the design of all programs and procurements; the development of methods that optimize procurement of renewable energy credits from proposed utility-scale projects that are located in communities eligible to receive Energy Transition Community Grants; diversity requirements related to the eligibility criteria for the selection as a supplier of renewable energy credits; the assessment of fees to recover specified costs incurred by the Illinois Power Agency; diversity requirements related to the criteria for an owner to receive grants from the Coal to Solar and Energy Storage Initiative Fund; the provision of information on renewable energy company diversity reporting via the Agency's public facing online tool; and diversity, equity, and inclusion plans. LRB104 06526 AAS 16562 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3258 Introduced , by Rep. Brad Halbrook SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-75 20 ILCS 3855/1-75 Amends the Illinois Power Agency Act. Removes language regarding: diversity requirements related to the design of all programs and procurements; the development of methods that optimize procurement of renewable energy credits from proposed utility-scale projects that are located in communities eligible to receive Energy Transition Community Grants; diversity requirements related to the eligibility criteria for the selection as a supplier of renewable energy credits; the assessment of fees to recover specified costs incurred by the Illinois Power Agency; diversity requirements related to the criteria for an owner to receive grants from the Coal to Solar and Energy Storage Initiative Fund; the provision of information on renewable energy company diversity reporting via the Agency's public facing online tool; and diversity, equity, and inclusion plans. LRB104 06526 AAS 16562 b LRB104 06526 AAS 16562 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3258 Introduced , by Rep. Brad Halbrook SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 3855/1-75 20 ILCS 3855/1-75
4	4	20 ILCS 3855/1-75
5	5	Amends the Illinois Power Agency Act. Removes language regarding: diversity requirements related to the design of all programs and procurements; the development of methods that optimize procurement of renewable energy credits from proposed utility-scale projects that are located in communities eligible to receive Energy Transition Community Grants; diversity requirements related to the eligibility criteria for the selection as a supplier of renewable energy credits; the assessment of fees to recover specified costs incurred by the Illinois Power Agency; diversity requirements related to the criteria for an owner to receive grants from the Coal to Solar and Energy Storage Initiative Fund; the provision of information on renewable energy company diversity reporting via the Agency's public facing online tool; and diversity, equity, and inclusion plans.
6	6	LRB104 06526 AAS 16562 b LRB104 06526 AAS 16562 b
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8	8	A BILL FOR
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11	11	1 AN ACT concerning State government.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Power Agency Act is amended by
15	15	5 changing Section 1-75 as follows:
16	16	6 (20 ILCS 3855/1-75)
17	17	7 Sec. 1-75. Planning and Procurement Bureau. The Planning
18	18	8 and Procurement Bureau has the following duties and
19	19	9 responsibilities:
20	20	10 (a) The Planning and Procurement Bureau shall each year,
21	21	11 beginning in 2008, develop procurement plans and conduct
22	22	12 competitive procurement processes in accordance with the
23	23	13 requirements of Section 16-111.5 of the Public Utilities Act
24	24	14 for the eligible retail customers of electric utilities that
25	25	15 on December 31, 2005 provided electric service to at least
26	26	16 100,000 customers in Illinois. Beginning with the delivery
27	27	17 year commencing on June 1, 2017, the Planning and Procurement
28	28	18 Bureau shall develop plans and processes for the procurement
29	29	19 of zero emission credits from zero emission facilities in
30	30	20 accordance with the requirements of subsection (d-5) of this
31	31	21 Section. Beginning on the effective date of this amendatory
32	32	22 Act of the 102nd General Assembly, the Planning and
33	33	23 Procurement Bureau shall develop plans and processes for the
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3258 Introduced , by Rep. Brad Halbrook SYNOPSIS AS INTRODUCED:
38	38	20 ILCS 3855/1-75 20 ILCS 3855/1-75
39	39	20 ILCS 3855/1-75
40	40	Amends the Illinois Power Agency Act. Removes language regarding: diversity requirements related to the design of all programs and procurements; the development of methods that optimize procurement of renewable energy credits from proposed utility-scale projects that are located in communities eligible to receive Energy Transition Community Grants; diversity requirements related to the eligibility criteria for the selection as a supplier of renewable energy credits; the assessment of fees to recover specified costs incurred by the Illinois Power Agency; diversity requirements related to the criteria for an owner to receive grants from the Coal to Solar and Energy Storage Initiative Fund; the provision of information on renewable energy company diversity reporting via the Agency's public facing online tool; and diversity, equity, and inclusion plans.
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43	43	A BILL FOR
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68	68	1 procurement of carbon mitigation credits from carbon-free
69	69	2 energy resources in accordance with the requirements of
70	70	3 subsection (d-10) of this Section. The Planning and
71	71	4 Procurement Bureau shall also develop procurement plans and
72	72	5 conduct competitive procurement processes in accordance with
73	73	6 the requirements of Section 16-111.5 of the Public Utilities
74	74	7 Act for the eligible retail customers of small
75	75	8 multi-jurisdictional electric utilities that (i) on December
76	76	9 31, 2005 served less than 100,000 customers in Illinois and
77	77	10 (ii) request a procurement plan for their Illinois
78	78	11 jurisdictional load. This Section shall not apply to a small
79	79	12 multi-jurisdictional utility until such time as a small
80	80	13 multi-jurisdictional utility requests the Agency to prepare a
81	81	14 procurement plan for their Illinois jurisdictional load. For
82	82	15 the purposes of this Section, the term "eligible retail
83	83	16 customers" has the same definition as found in Section
84	84	17 16-111.5(a) of the Public Utilities Act.
85	85	18 Beginning with the plan or plans to be implemented in the
86	86	19 2017 delivery year, the Agency shall no longer include the
87	87	20 procurement of renewable energy resources in the annual
88	88	21 procurement plans required by this subsection (a), except as
89	89	22 provided in subsection (q) of Section 16-111.5 of the Public
90	90	23 Utilities Act, and shall instead develop a long-term renewable
91	91	24 resources procurement plan in accordance with subsection (c)
92	92	25 of this Section and Section 16-111.5 of the Public Utilities
93	93	26 Act.
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104	104	1 In accordance with subsection (c-5) of this Section, the
105	105	2 Planning and Procurement Bureau shall oversee the procurement
106	106	3 by electric utilities that served more than 300,000 retail
107	107	4 customers in this State as of January 1, 2019 of renewable
108	108	5 energy credits from new utility-scale solar projects to be
109	109	6 installed, along with energy storage facilities, at or
110	110	7 adjacent to the sites of electric generating facilities that,
111	111	8 as of January 1, 2016, burned coal as their primary fuel
112	112	9 source.
113	113	10 (1) The Agency shall each year, beginning in 2008, as
114	114	11 needed, issue a request for qualifications for experts or
115	115	12 expert consulting firms to develop the procurement plans
116	116	13 in accordance with Section 16-111.5 of the Public
117	117	14 Utilities Act. In order to qualify an expert or expert
118	118	15 consulting firm must have:
119	119	16 (A) direct previous experience assembling
120	120	17 large-scale power supply plans or portfolios for
121	121	18 end-use customers;
122	122	19 (B) an advanced degree in economics, mathematics,
123	123	20 engineering, risk management, or a related area of
124	124	21 study;
125	125	22 (C) 10 years of experience in the electricity
126	126	23 sector, including managing supply risk;
127	127	24 (D) expertise in wholesale electricity market
128	128	25 rules, including those established by the Federal
129	129	26 Energy Regulatory Commission and regional transmission
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140	140	1 organizations;
141	141	2 (E) expertise in credit protocols and familiarity
142	142	3 with contract protocols;
143	143	4 (F) adequate resources to perform and fulfill the
144	144	5 required functions and responsibilities; and
145	145	6 (G) the absence of a conflict of interest and
146	146	7 inappropriate bias for or against potential bidders or
147	147	8 the affected electric utilities.
148	148	9 (2) The Agency shall each year, as needed, issue a
149	149	10 request for qualifications for a procurement administrator
150	150	11 to conduct the competitive procurement processes in
151	151	12 accordance with Section 16-111.5 of the Public Utilities
152	152	13 Act. In order to qualify an expert or expert consulting
153	153	14 firm must have:
154	154	15 (A) direct previous experience administering a
155	155	16 large-scale competitive procurement process;
156	156	17 (B) an advanced degree in economics, mathematics,
157	157	18 engineering, or a related area of study;
158	158	19 (C) 10 years of experience in the electricity
159	159	20 sector, including risk management experience;
160	160	21 (D) expertise in wholesale electricity market
161	161	22 rules, including those established by the Federal
162	162	23 Energy Regulatory Commission and regional transmission
163	163	24 organizations;
164	164	25 (E) expertise in credit and contract protocols;
165	165	26 (F) adequate resources to perform and fulfill the
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176	176	1 required functions and responsibilities; and
177	177	2 (G) the absence of a conflict of interest and
178	178	3 inappropriate bias for or against potential bidders or
179	179	4 the affected electric utilities.
180	180	5 (3) The Agency shall provide affected utilities and
181	181	6 other interested parties with the lists of qualified
182	182	7 experts or expert consulting firms identified through the
183	183	8 request for qualifications processes that are under
184	184	9 consideration to develop the procurement plans and to
185	185	10 serve as the procurement administrator. The Agency shall
186	186	11 also provide each qualified expert's or expert consulting
187	187	12 firm's response to the request for qualifications. All
188	188	13 information provided under this subparagraph shall also be
189	189	14 provided to the Commission. The Agency may provide by rule
190	190	15 for fees associated with supplying the information to
191	191	16 utilities and other interested parties. These parties
192	192	17 shall, within 5 business days, notify the Agency in
193	193	18 writing if they object to any experts or expert consulting
194	194	19 firms on the lists. Objections shall be based on:
195	195	20 (A) failure to satisfy qualification criteria;
196	196	21 (B) identification of a conflict of interest; or
197	197	22 (C) evidence of inappropriate bias for or against
198	198	23 potential bidders or the affected utilities.
199	199	24 The Agency shall remove experts or expert consulting
200	200	25 firms from the lists within 10 days if there is a
201	201	26 reasonable basis for an objection and provide the updated
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212	212	1 lists to the affected utilities and other interested
213	213	2 parties. If the Agency fails to remove an expert or expert
214	214	3 consulting firm from a list, an objecting party may seek
215	215	4 review by the Commission within 5 days thereafter by
216	216	5 filing a petition, and the Commission shall render a
217	217	6 ruling on the petition within 10 days. There is no right of
218	218	7 appeal of the Commission's ruling.
219	219	8 (4) The Agency shall issue requests for proposals to
220	220	9 the qualified experts or expert consulting firms to
221	221	10 develop a procurement plan for the affected utilities and
222	222	11 to serve as procurement administrator.
223	223	12 (5) The Agency shall select an expert or expert
224	224	13 consulting firm to develop procurement plans based on the
225	225	14 proposals submitted and shall award contracts of up to 5
226	226	15 years to those selected.
227	227	16 (6) The Agency shall select an expert or expert
228	228	17 consulting firm, with approval of the Commission, to serve
229	229	18 as procurement administrator based on the proposals
230	230	19 submitted. If the Commission rejects, within 5 days, the
231	231	20 Agency's selection, the Agency shall submit another
232	232	21 recommendation within 3 days based on the proposals
233	233	22 submitted. The Agency shall award a 5-year contract to the
234	234	23 expert or expert consulting firm so selected with
235	235	24 Commission approval.
236	236	25 (b) The experts or expert consulting firms retained by the
237	237	26 Agency shall, as appropriate, prepare procurement plans, and
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248	248	1 conduct a competitive procurement process as prescribed in
249	249	2 Section 16-111.5 of the Public Utilities Act, to ensure
250	250	3 adequate, reliable, affordable, efficient, and environmentally
251	251	4 sustainable electric service at the lowest total cost over
252	252	5 time, taking into account any benefits of price stability, for
253	253	6 eligible retail customers of electric utilities that on
254	254	7 December 31, 2005 provided electric service to at least
255	255	8 100,000 customers in the State of Illinois, and for eligible
256	256	9 Illinois retail customers of small multi-jurisdictional
257	257	10 electric utilities that (i) on December 31, 2005 served less
258	258	11 than 100,000 customers in Illinois and (ii) request a
259	259	12 procurement plan for their Illinois jurisdictional load.
260	260	13 (c) Renewable portfolio standard.
261	261	14 (1)(A) The Agency shall develop a long-term renewable
262	262	15 resources procurement plan that shall include procurement
263	263	16 programs and competitive procurement events necessary to
264	264	17 meet the goals set forth in this subsection (c). The
265	265	18 initial long-term renewable resources procurement plan
266	266	19 shall be released for comment no later than 160 days after
267	267	20 June 1, 2017 (the effective date of Public Act 99-906).
268	268	21 The Agency shall review, and may revise on an expedited
269	269	22 basis, the long-term renewable resources procurement plan
270	270	23 at least every 2 years, which shall be conducted in
271	271	24 conjunction with the procurement plan under Section
272	272	25 16-111.5 of the Public Utilities Act to the extent
273	273	26 practicable to minimize administrative expense. No later
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284	284	1 than 120 days after the effective date of this amendatory
285	285	2 Act of the 103rd General Assembly, the Agency shall
286	286	3 release for comment a revision to the long-term renewable
287	287	4 resources procurement plan, updating elements of the most
288	288	5 recently approved plan as needed to comply with this
289	289	6 amendatory Act of the 103rd General Assembly, and any
290	290	7 long-term renewable resources procurement plan update
291	291	8 published by the Agency but not yet approved by the
292	292	9 Illinois Commerce Commission shall be withdrawn. The
293	293	10 long-term renewable resources procurement plans shall be
294	294	11 subject to review and approval by the Commission under
295	295	12 Section 16-111.5 of the Public Utilities Act.
296	296	13 (B) Subject to subparagraph (F) of this paragraph (1),
297	297	14 the long-term renewable resources procurement plan shall
298	298	15 attempt to meet the goals for procurement of renewable
299	299	16 energy credits at levels of at least the following overall
300	300	17 percentages: 13% by the 2017 delivery year; increasing by
301	301	18 at least 1.5% each delivery year thereafter to at least
302	302	19 25% by the 2025 delivery year; increasing by at least 3%
303	303	20 each delivery year thereafter to at least 40% by the 2030
304	304	21 delivery year, and continuing at no less than 40% for each
305	305	22 delivery year thereafter. The Agency shall attempt to
306	306	23 procure 50% by delivery year 2040. The Agency shall
307	307	24 determine the annual increase between delivery year 2030
308	308	25 and delivery year 2040, if any, taking into account energy
309	309	26 demand, other energy resources, and other public policy
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320	320	1 goals. In the event of a conflict between these goals and
321	321	2 the new wind, new photovoltaic, and hydropower procurement
322	322	3 requirements described in items (i) through (iii) of
323	323	4 subparagraph (C) of this paragraph (1), the long-term plan
324	324	5 shall prioritize compliance with the new wind, new
325	325	6 photovoltaic, and hydropower procurement requirements
326	326	7 described in items (i) through (iii) of subparagraph (C)
327	327	8 of this paragraph (1) over the annual percentage targets
328	328	9 described in this subparagraph (B). The Agency shall not
329	329	10 comply with the annual percentage targets described in
330	330	11 this subparagraph (B) by procuring renewable energy
331	331	12 credits that are unlikely to lead to the development of
332	332	13 new renewable resources or new, modernized, or retooled
333	333	14 hydropower facilities.
334	334	15 For the delivery year beginning June 1, 2017, the
335	335	16 procurement plan shall attempt to include, subject to the
336	336	17 prioritization outlined in this subparagraph (B),
337	337	18 cost-effective renewable energy resources equal to at
338	338	19 least 13% of each utility's load for eligible retail
339	339	20 customers and 13% of the applicable portion of each
340	340	21 utility's load for retail customers who are not eligible
341	341	22 retail customers, which applicable portion shall equal 50%
342	342	23 of the utility's load for retail customers who are not
343	343	24 eligible retail customers on February 28, 2017.
344	344	25 For the delivery year beginning June 1, 2018, the
345	345	26 procurement plan shall attempt to include, subject to the
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356	356	1 prioritization outlined in this subparagraph (B),
357	357	2 cost-effective renewable energy resources equal to at
358	358	3 least 14.5% of each utility's load for eligible retail
359	359	4 customers and 14.5% of the applicable portion of each
360	360	5 utility's load for retail customers who are not eligible
361	361	6 retail customers, which applicable portion shall equal 75%
362	362	7 of the utility's load for retail customers who are not
363	363	8 eligible retail customers on February 28, 2017.
364	364	9 For the delivery year beginning June 1, 2019, and for
365	365	10 each year thereafter, the procurement plans shall attempt
366	366	11 to include, subject to the prioritization outlined in this
367	367	12 subparagraph (B), cost-effective renewable energy
368	368	13 resources equal to a minimum percentage of each utility's
369	369	14 load for all retail customers as follows: 16% by June 1,
370	370	15 2019; increasing by 1.5% each year thereafter to 25% by
371	371	16 June 1, 2025; and 25% by June 1, 2026; increasing by at
372	372	17 least 3% each delivery year thereafter to at least 40% by
373	373	18 the 2030 delivery year, and continuing at no less than 40%
374	374	19 for each delivery year thereafter. The Agency shall
375	375	20 attempt to procure 50% by delivery year 2040. The Agency
376	376	21 shall determine the annual increase between delivery year
377	377	22 2030 and delivery year 2040, if any, taking into account
378	378	23 energy demand, other energy resources, and other public
379	379	24 policy goals.
380	380	25 For each delivery year, the Agency shall first
381	381	26 recognize each utility's obligations for that delivery
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392	392	1 year under existing contracts. Any renewable energy
393	393	2 credits under existing contracts, including renewable
394	394	3 energy credits as part of renewable energy resources,
395	395	4 shall be used to meet the goals set forth in this
396	396	5 subsection (c) for the delivery year.
397	397	6 (C) The long-term renewable resources procurement plan
398	398	7 described in subparagraph (A) of this paragraph (1) shall
399	399	8 include the procurement of renewable energy credits from
400	400	9 new projects pursuant to the following terms:
401	401	10 (i) At least 10,000,000 renewable energy credits
402	402	11 delivered annually by the end of the 2021 delivery
403	403	12 year, and increasing ratably to reach 45,000,000
404	404	13 renewable energy credits delivered annually from new
405	405	14 wind and solar projects by the end of delivery year
406	406	15 2030 such that the goals in subparagraph (B) of this
407	407	16 paragraph (1) are met entirely by procurements of
408	408	17 renewable energy credits from new wind and
409	409	18 photovoltaic projects. Of that amount, to the extent
410	410	19 possible, the Agency shall procure 45% from wind and
411	411	20 hydropower projects and 55% from photovoltaic
412	412	21 projects. Of the amount to be procured from
413	413	22 photovoltaic projects, the Agency shall procure: at
414	414	23 least 50% from solar photovoltaic projects using the
415	415	24 program outlined in subparagraph (K) of this paragraph
416	416	25 (1) from distributed renewable energy generation
417	417	26 devices or community renewable generation projects; at
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428	428	1 least 47% from utility-scale solar projects; at least
429	429	2 3% from brownfield site photovoltaic projects that are
430	430	3 not community renewable generation projects.
431	431	4 In developing the long-term renewable resources
432	432	5 procurement plan, the Agency shall consider other
433	433	6 approaches, in addition to competitive procurements,
434	434	7 that can be used to procure renewable energy credits
435	435	8 from brownfield site photovoltaic projects and thereby
436	436	9 help return blighted or contaminated land to
437	437	10 productive use while enhancing public health and the
438	438	11 well-being of Illinois residents, including those in
439	439	12 environmental justice communities, as defined using
440	440	13 existing methodologies and findings used by the Agency
441	441	14 and its Administrator in its Illinois Solar for All
442	442	15 Program. The Agency shall also consider other
443	443	16 approaches, in addition to competitive procurements,
444	444	17 to procure renewable energy credits from new and
445	445	18 existing hydropower facilities to support the
446	446	19 development and maintenance of these facilities. The
447	447	20 Agency shall explore options to convert existing dams
448	448	21 but shall not consider approaches to develop new dams
449	449	22 where they do not already exist.
450	450	23 (ii) In any given delivery year, if forecasted
451	451	24 expenses are less than the maximum budget available
452	452	25 under subparagraph (E) of this paragraph (1), the
453	453	26 Agency shall continue to procure new renewable energy
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464	464	1 credits until that budget is exhausted in the manner
465	465	2 outlined in item (i) of this subparagraph (C).
466	466	3 (iii) For purposes of this Section:
467	467	4 "New wind projects" means wind renewable energy
468	468	5 facilities that are energized after June 1, 2017 for
469	469	6 the delivery year commencing June 1, 2017.
470	470	7 "New photovoltaic projects" means photovoltaic
471	471	8 renewable energy facilities that are energized after
472	472	9 June 1, 2017. Photovoltaic projects developed under
473	473	10 Section 1-56 of this Act shall not apply towards the
474	474	11 new photovoltaic project requirements in this
475	475	12 subparagraph (C).
476	476	13 For purposes of calculating whether the Agency has
477	477	14 procured enough new wind and solar renewable energy
478	478	15 credits required by this subparagraph (C), renewable
479	479	16 energy facilities that have a multi-year renewable
480	480	17 energy credit delivery contract with the utility
481	481	18 through at least delivery year 2030 shall be
482	482	19 considered new, however no renewable energy credits
483	483	20 from contracts entered into before June 1, 2021 shall
484	484	21 be used to calculate whether the Agency has procured
485	485	22 the correct proportion of new wind and new solar
486	486	23 contracts described in this subparagraph (C) for
487	487	24 delivery year 2021 and thereafter.
488	488	25 (D) Renewable energy credits shall be cost effective.
489	489	26 For purposes of this subsection (c), "cost effective"
490	490
491	491
492	492
493	493
494	494
495	495	HB3258 - 13 - LRB104 06526 AAS 16562 b
496	496
497	497
498	498	HB3258- 14 -LRB104 06526 AAS 16562 b HB3258 - 14 - LRB104 06526 AAS 16562 b
499	499	HB3258 - 14 - LRB104 06526 AAS 16562 b
500	500	1 means that the costs of procuring renewable energy
501	501	2 resources do not cause the limit stated in subparagraph
502	502	3 (E) of this paragraph (1) to be exceeded and, for
503	503	4 renewable energy credits procured through a competitive
504	504	5 procurement event, do not exceed benchmarks based on
505	505	6 market prices for like products in the region. For
506	506	7 purposes of this subsection (c), "like products" means
507	507	8 contracts for renewable energy credits from the same or
508	508	9 substantially similar technology, same or substantially
509	509	10 similar vintage (new or existing), the same or
510	510	11 substantially similar quantity, and the same or
511	511	12 substantially similar contract length and structure.
512	512	13 Benchmarks shall reflect development, financing, or
513	513	14 related costs resulting from requirements imposed through
514	514	15 other provisions of State law, including, but not limited
515	515	16 to, requirements in subparagraph subparagraphs (P) and (Q)
516	516	17 of this paragraph (1) and the Renewable Energy Facilities
517	517	18 Agricultural Impact Mitigation Act. Confidential
518	518	19 benchmarks shall be developed by the procurement
519	519	20 administrator, in consultation with the Commission staff,
520	520	21 Agency staff, and the procurement monitor and shall be
521	521	22 subject to Commission review and approval. If price
522	522	23 benchmarks for like products in the region are not
523	523	24 available, the procurement administrator shall establish
524	524	25 price benchmarks based on publicly available data on
525	525	26 regional technology costs and expected current and future
526	526
527	527
528	528
529	529
530	530
531	531	HB3258 - 14 - LRB104 06526 AAS 16562 b
532	532
533	533
534	534	HB3258- 15 -LRB104 06526 AAS 16562 b HB3258 - 15 - LRB104 06526 AAS 16562 b
535	535	HB3258 - 15 - LRB104 06526 AAS 16562 b
536	536	1 regional energy prices. The benchmarks in this Section
537	537	2 shall not be used to curtail or otherwise reduce
538	538	3 contractual obligations entered into by or through the
539	539	4 Agency prior to June 1, 2017 (the effective date of Public
540	540	5 Act 99-906).
541	541	6 (E) For purposes of this subsection (c), the required
542	542	7 procurement of cost-effective renewable energy resources
543	543	8 for a particular year commencing prior to June 1, 2017
544	544	9 shall be measured as a percentage of the actual amount of
545	545	10 electricity (megawatt-hours) supplied by the electric
546	546	11 utility to eligible retail customers in the delivery year
547	547	12 ending immediately prior to the procurement, and, for
548	548	13 delivery years commencing on and after June 1, 2017, the
549	549	14 required procurement of cost-effective renewable energy
550	550	15 resources for a particular year shall be measured as a
551	551	16 percentage of the actual amount of electricity
552	552	17 (megawatt-hours) delivered by the electric utility in the
553	553	18 delivery year ending immediately prior to the procurement,
554	554	19 to all retail customers in its service territory. For
555	555	20 purposes of this subsection (c), the amount paid per
556	556	21 kilowatthour means the total amount paid for electric
557	557	22 service expressed on a per kilowatthour basis. For
558	558	23 purposes of this subsection (c), the total amount paid for
559	559	24 electric service includes without limitation amounts paid
560	560	25 for supply, transmission, capacity, distribution,
561	561	26 surcharges, and add-on taxes.
562	562
563	563
564	564
565	565
566	566
567	567	HB3258 - 15 - LRB104 06526 AAS 16562 b
568	568
569	569
570	570	HB3258- 16 -LRB104 06526 AAS 16562 b HB3258 - 16 - LRB104 06526 AAS 16562 b
571	571	HB3258 - 16 - LRB104 06526 AAS 16562 b
572	572	1 Notwithstanding the requirements of this subsection
573	573	2 (c), the total of renewable energy resources procured
574	574	3 under the procurement plan for any single year shall be
575	575	4 subject to the limitations of this subparagraph (E). Such
576	576	5 procurement shall be reduced for all retail customers
577	577	6 based on the amount necessary to limit the annual
578	578	7 estimated average net increase due to the costs of these
579	579	8 resources included in the amounts paid by eligible retail
580	580	9 customers in connection with electric service to no more
581	581	10 than 4.25% of the amount paid per kilowatthour by those
582	582	11 customers during the year ending May 31, 2009. To arrive
583	583	12 at a maximum dollar amount of renewable energy resources
584	584	13 to be procured for the particular delivery year, the
585	585	14 resulting per kilowatthour amount shall be applied to the
586	586	15 actual amount of kilowatthours of electricity delivered,
587	587	16 or applicable portion of such amount as specified in
588	588	17 paragraph (1) of this subsection (c), as applicable, by
589	589	18 the electric utility in the delivery year immediately
590	590	19 prior to the procurement to all retail customers in its
591	591	20 service territory. The calculations required by this
592	592	21 subparagraph (E) shall be made only once for each delivery
593	593	22 year at the time that the renewable energy resources are
594	594	23 procured. Once the determination as to the amount of
595	595	24 renewable energy resources to procure is made based on the
596	596	25 calculations set forth in this subparagraph (E) and the
597	597	26 contracts procuring those amounts are executed, no
598	598
599	599
600	600
601	601
602	602
603	603	HB3258 - 16 - LRB104 06526 AAS 16562 b
604	604
605	605
606	606	HB3258- 17 -LRB104 06526 AAS 16562 b HB3258 - 17 - LRB104 06526 AAS 16562 b
607	607	HB3258 - 17 - LRB104 06526 AAS 16562 b
608	608	1 subsequent rate impact determinations shall be made and no
609	609	2 adjustments to those contract amounts shall be allowed.
610	610	3 All costs incurred under such contracts shall be fully
611	611	4 recoverable by the electric utility as provided in this
612	612	5 Section.
613	613	6 (F) If the limitation on the amount of renewable
614	614	7 energy resources procured in subparagraph (E) of this
615	615	8 paragraph (1) prevents the Agency from meeting all of the
616	616	9 goals in this subsection (c), the Agency's long-term plan
617	617	10 shall prioritize compliance with the requirements of this
618	618	11 subsection (c) regarding renewable energy credits in the
619	619	12 following order:
620	620	13 (i) renewable energy credits under existing
621	621	14 contractual obligations as of June 1, 2021;
622	622	15 (i-5) funding for the Illinois Solar for All
623	623	16 Program, as described in subparagraph (O) of this
624	624	17 paragraph (1);
625	625	18 (ii) renewable energy credits necessary to comply
626	626	19 with the new wind and new photovoltaic procurement
627	627	20 requirements described in items (i) through (iii) of
628	628	21 subparagraph (C) of this paragraph (1); and
629	629	22 (iii) renewable energy credits necessary to meet
630	630	23 the remaining requirements of this subsection (c).
631	631	24 (G) The following provisions shall apply to the
632	632	25 Agency's procurement of renewable energy credits under
633	633	26 this subsection (c):
634	634
635	635
636	636
637	637
638	638
639	639	HB3258 - 17 - LRB104 06526 AAS 16562 b
640	640
641	641
642	642	HB3258- 18 -LRB104 06526 AAS 16562 b HB3258 - 18 - LRB104 06526 AAS 16562 b
643	643	HB3258 - 18 - LRB104 06526 AAS 16562 b
644	644	1 (i) Notwithstanding whether a long-term renewable
645	645	2 resources procurement plan has been approved, the
646	646	3 Agency shall conduct an initial forward procurement
647	647	4 for renewable energy credits from new utility-scale
648	648	5 wind projects within 160 days after June 1, 2017 (the
649	649	6 effective date of Public Act 99-906). For the purposes
650	650	7 of this initial forward procurement, the Agency shall
651	651	8 solicit 15-year contracts for delivery of 1,000,000
652	652	9 renewable energy credits delivered annually from new
653	653	10 utility-scale wind projects to begin delivery on June
654	654	11 1, 2019, if available, but not later than June 1, 2021,
655	655	12 unless the project has delays in the establishment of
656	656	13 an operating interconnection with the applicable
657	657	14 transmission or distribution system as a result of the
658	658	15 actions or inactions of the transmission or
659	659	16 distribution provider, or other causes for force
660	660	17 majeure as outlined in the procurement contract, in
661	661	18 which case, not later than June 1, 2022. Payments to
662	662	19 suppliers of renewable energy credits shall commence
663	663	20 upon delivery. Renewable energy credits procured under
664	664	21 this initial procurement shall be included in the
665	665	22 Agency's long-term plan and shall apply to all
666	666	23 renewable energy goals in this subsection (c).
667	667	24 (ii) Notwithstanding whether a long-term renewable
668	668	25 resources procurement plan has been approved, the
669	669	26 Agency shall conduct an initial forward procurement
670	670
671	671
672	672
673	673
674	674
675	675	HB3258 - 18 - LRB104 06526 AAS 16562 b
676	676
677	677
678	678	HB3258- 19 -LRB104 06526 AAS 16562 b HB3258 - 19 - LRB104 06526 AAS 16562 b
679	679	HB3258 - 19 - LRB104 06526 AAS 16562 b
680	680	1 for renewable energy credits from new utility-scale
681	681	2 solar projects and brownfield site photovoltaic
682	682	3 projects within one year after June 1, 2017 (the
683	683	4 effective date of Public Act 99-906). For the purposes
684	684	5 of this initial forward procurement, the Agency shall
685	685	6 solicit 15-year contracts for delivery of 1,000,000
686	686	7 renewable energy credits delivered annually from new
687	687	8 utility-scale solar projects and brownfield site
688	688	9 photovoltaic projects to begin delivery on June 1,
689	689	10 2019, if available, but not later than June 1, 2021,
690	690	11 unless the project has delays in the establishment of
691	691	12 an operating interconnection with the applicable
692	692	13 transmission or distribution system as a result of the
693	693	14 actions or inactions of the transmission or
694	694	15 distribution provider, or other causes for force
695	695	16 majeure as outlined in the procurement contract, in
696	696	17 which case, not later than June 1, 2022. The Agency may
697	697	18 structure this initial procurement in one or more
698	698	19 discrete procurement events. Payments to suppliers of
699	699	20 renewable energy credits shall commence upon delivery.
700	700	21 Renewable energy credits procured under this initial
701	701	22 procurement shall be included in the Agency's
702	702	23 long-term plan and shall apply to all renewable energy
703	703	24 goals in this subsection (c).
704	704	25 (iii) Notwithstanding whether the Commission has
705	705	26 approved the periodic long-term renewable resources
706	706
707	707
708	708
709	709
710	710
711	711	HB3258 - 19 - LRB104 06526 AAS 16562 b
712	712
713	713
714	714	HB3258- 20 -LRB104 06526 AAS 16562 b HB3258 - 20 - LRB104 06526 AAS 16562 b
715	715	HB3258 - 20 - LRB104 06526 AAS 16562 b
716	716	1 procurement plan revision described in Section
717	717	2 16-111.5 of the Public Utilities Act, the Agency shall
718	718	3 conduct at least one subsequent forward procurement
719	719	4 for renewable energy credits from new utility-scale
720	720	5 wind projects, new utility-scale solar projects, and
721	721	6 new brownfield site photovoltaic projects within 240
722	722	7 days after the effective date of this amendatory Act
723	723	8 of the 102nd General Assembly in quantities necessary
724	724	9 to meet the requirements of subparagraph (C) of this
725	725	10 paragraph (1) through the delivery year beginning June
726	726	11 1, 2021.
727	727	12 (iv) Notwithstanding whether the Commission has
728	728	13 approved the periodic long-term renewable resources
729	729	14 procurement plan revision described in Section
730	730	15 16-111.5 of the Public Utilities Act, the Agency shall
731	731	16 open capacity for each category in the Adjustable
732	732	17 Block program within 90 days after the effective date
733	733	18 of this amendatory Act of the 102nd General Assembly
734	734	19 manner:
735	735	20 (1) The Agency shall open the first block of
736	736	21 annual capacity for the category described in item
737	737	22 (i) of subparagraph (K) of this paragraph (1). The
738	738	23 first block of annual capacity for item (i) shall
739	739	24 be for at least 75 megawatts of total nameplate
740	740	25 capacity. The price of the renewable energy credit
741	741	26 for this block of capacity shall be 4% less than
742	742
743	743
744	744
745	745
746	746
747	747	HB3258 - 20 - LRB104 06526 AAS 16562 b
748	748
749	749
750	750	HB3258- 21 -LRB104 06526 AAS 16562 b HB3258 - 21 - LRB104 06526 AAS 16562 b
751	751	HB3258 - 21 - LRB104 06526 AAS 16562 b
752	752	1 the price of the last open block in this category.
753	753	2 Projects on a waitlist shall be awarded contracts
754	754	3 first in the order in which they appear on the
755	755	4 waitlist. Notwithstanding anything to the
756	756	5 contrary, for those renewable energy credits that
757	757	6 qualify and are procured under this subitem (1) of
758	758	7 this item (iv), the renewable energy credit
759	759	8 delivery contract value shall be paid in full,
760	760	9 based on the estimated generation during the first
761	761	10 15 years of operation, by the contracting
762	762	11 utilities at the time that the facility producing
763	763	12 the renewable energy credits is interconnected at
764	764	13 the distribution system level of the utility and
765	765	14 verified as energized and in compliance by the
766	766	15 Program Administrator. The electric utility shall
767	767	16 receive and retire all renewable energy credits
768	768	17 generated by the project for the first 15 years of
769	769	18 operation. Renewable energy credits generated by
770	770	19 the project thereafter shall not be transferred
771	771	20 under the renewable energy credit delivery
772	772	21 contract with the counterparty electric utility.
773	773	22 (2) The Agency shall open the first block of
774	774	23 annual capacity for the category described in item
775	775	24 (ii) of subparagraph (K) of this paragraph (1).
776	776	25 The first block of annual capacity for item (ii)
777	777	26 shall be for at least 75 megawatts of total
778	778
779	779
780	780
781	781
782	782
783	783	HB3258 - 21 - LRB104 06526 AAS 16562 b
784	784
785	785
786	786	HB3258- 22 -LRB104 06526 AAS 16562 b HB3258 - 22 - LRB104 06526 AAS 16562 b
787	787	HB3258 - 22 - LRB104 06526 AAS 16562 b
788	788	1 nameplate capacity.
789	789	2 (A) The price of the renewable energy
790	790	3 credit for any project on a waitlist for this
791	791	4 category before the opening of this block
792	792	5 shall be 4% less than the price of the last
793	793	6 open block in this category. Projects on the
794	794	7 waitlist shall be awarded contracts first in
795	795	8 the order in which they appear on the
796	796	9 waitlist. Any projects that are less than or
797	797	10 equal to 25 kilowatts in size on the waitlist
798	798	11 for this capacity shall be moved to the
799	799	12 waitlist for paragraph (1) of this item (iv).
800	800	13 Notwithstanding anything to the contrary,
801	801	14 projects that were on the waitlist prior to
802	802	15 opening of this block shall not be required to
803	803	16 be in compliance with the requirements of
804	804	17 subparagraph (Q) of this paragraph (1) of this
805	805	18 subsection (c). Notwithstanding anything to
806	806	19 the contrary, for those renewable energy
807	807	20 credits procured from projects that were on
808	808	21 the waitlist for this category before the
809	809	22 opening of this block 20% of the renewable
810	810	23 energy credit delivery contract value, based
811	811	24 on the estimated generation during the first
812	812	25 15 years of operation, shall be paid by the
813	813	26 contracting utilities at the time that the
814	814
815	815
816	816
817	817
818	818
819	819	HB3258 - 22 - LRB104 06526 AAS 16562 b
820	820
821	821
822	822	HB3258- 23 -LRB104 06526 AAS 16562 b HB3258 - 23 - LRB104 06526 AAS 16562 b
823	823	HB3258 - 23 - LRB104 06526 AAS 16562 b
824	824	1 facility producing the renewable energy
825	825	2 credits is interconnected at the distribution
826	826	3 system level of the utility and verified as
827	827	4 energized by the Program Administrator. The
828	828	5 remaining portion shall be paid ratably over
829	829	6 the subsequent 4-year period. The electric
830	830	7 utility shall receive and retire all renewable
831	831	8 energy credits generated by the project during
832	832	9 the first 15 years of operation. Renewable
833	833	10 energy credits generated by the project
834	834	11 thereafter shall not be transferred under the
835	835	12 renewable energy credit delivery contract with
836	836	13 the counterparty electric utility.
837	837	14 (B) The price of renewable energy credits
838	838	15 for any project not on the waitlist for this
839	839	16 category before the opening of the block shall
840	840	17 be determined and published by the Agency.
841	841	18 Projects not on a waitlist as of the opening
842	842	19 of this block shall be subject to the
843	843	20 requirements of subparagraph (Q) of this
844	844	21 paragraph (1), as applicable. Projects not on
845	845	22 a waitlist as of the opening of this block
846	846	23 shall be subject to the contract provisions
847	847	24 outlined in item (iii) of subparagraph (L) of
848	848	25 this paragraph (1). The Agency shall strive to
849	849	26 publish updated prices and an updated
850	850
851	851
852	852
853	853
854	854
855	855	HB3258 - 23 - LRB104 06526 AAS 16562 b
856	856
857	857
858	858	HB3258- 24 -LRB104 06526 AAS 16562 b HB3258 - 24 - LRB104 06526 AAS 16562 b
859	859	HB3258 - 24 - LRB104 06526 AAS 16562 b
860	860	1 renewable energy credit delivery contract as
861	861	2 quickly as possible.
862	862	3 (3) For opening the first 2 blocks of annual
863	863	4 capacity for projects participating in item (iii)
864	864	5 of subparagraph (K) of paragraph (1) of subsection
865	865	6 (c), projects shall be selected exclusively from
866	866	7 those projects on the ordinal waitlists of
867	867	8 community renewable generation projects
868	868	9 established by the Agency based on the status of
869	869	10 those ordinal waitlists as of December 31, 2020,
870	870	11 and only those projects previously determined to
871	871	12 be eligible for the Agency's April 2019 community
872	872	13 solar project selection process.
873	873	14 The first 2 blocks of annual capacity for item
874	874	15 (iii) shall be for 250 megawatts of total
875	875	16 nameplate capacity, with both blocks opening
876	876	17 simultaneously under the schedule outlined in the
877	877	18 paragraphs below. Projects shall be selected as
878	878	19 follows:
879	879	20 (A) The geographic balance of selected
880	880	21 projects shall follow the Group classification
881	881	22 found in the Agency's Revised Long-Term
882	882	23 Renewable Resources Procurement Plan, with 70%
883	883	24 of capacity allocated to projects on the Group
884	884	25 B waitlist and 30% of capacity allocated to
885	885	26 projects on the Group A waitlist.
886	886
887	887
888	888
889	889
890	890
891	891	HB3258 - 24 - LRB104 06526 AAS 16562 b
892	892
893	893
894	894	HB3258- 25 -LRB104 06526 AAS 16562 b HB3258 - 25 - LRB104 06526 AAS 16562 b
895	895	HB3258 - 25 - LRB104 06526 AAS 16562 b
896	896	1 (B) Contract awards for waitlisted
897	897	2 projects shall be allocated proportionate to
898	898	3 the total nameplate capacity amount across
899	899	4 both ordinal waitlists associated with that
900	900	5 applicant firm or its affiliates, subject to
901	901	6 the following conditions.
902	902	7 (i) Each applicant firm having a
903	903	8 waitlisted project eligible for selection
904	904	9 shall receive no less than 500 kilowatts
905	905	10 in awarded capacity across all groups, and
906	906	11 no approved vendor may receive more than
907	907	12 20% of each Group's waitlist allocation.
908	908	13 (ii) Each applicant firm, upon
909	909	14 receiving an award of program capacity
910	910	15 proportionate to its waitlisted capacity,
911	911	16 may then determine which waitlisted
912	912	17 projects it chooses to be selected for a
913	913	18 contract award up to that capacity amount.
914	914	19 (iii) Assuming all other program
915	915	20 requirements are met, applicant firms may
916	916	21 adjust the nameplate capacity of applicant
917	917	22 projects without losing waitlist
918	918	23 eligibility, so long as no project is
919	919	24 greater than 2,000 kilowatts in size.
920	920	25 (iv) Assuming all other program
921	921	26 requirements are met, applicant firms may
922	922
923	923
924	924
925	925
926	926
927	927	HB3258 - 25 - LRB104 06526 AAS 16562 b
928	928
929	929
930	930	HB3258- 26 -LRB104 06526 AAS 16562 b HB3258 - 26 - LRB104 06526 AAS 16562 b
931	931	HB3258 - 26 - LRB104 06526 AAS 16562 b
932	932	1 adjust the expected production associated
933	933	2 with applicant projects, subject to
934	934	3 verification by the Program Administrator.
935	935	4 (C) After a review of affiliate
936	936	5 information and the current ordinal waitlists,
937	937	6 the Agency shall announce the nameplate
938	938	7 capacity award amounts associated with
939	939	8 applicant firms no later than 90 days after
940	940	9 the effective date of this amendatory Act of
941	941	10 the 102nd General Assembly.
942	942	11 (D) Applicant firms shall submit their
943	943	12 portfolio of projects used to satisfy those
944	944	13 contract awards no less than 90 days after the
945	945	14 Agency's announcement. The total nameplate
946	946	15 capacity of all projects used to satisfy that
947	947	16 portfolio shall be no greater than the
948	948	17 Agency's nameplate capacity award amount
949	949	18 associated with that applicant firm. An
950	950	19 applicant firm may decline, in whole or in
951	951	20 part, its nameplate capacity award without
952	952	21 penalty, with such unmet capacity rolled over
953	953	22 to the next block opening for project
954	954	23 selection under item (iii) of subparagraph (K)
955	955	24 of this subsection (c). Any projects not
956	956	25 included in an applicant firm's portfolio may
957	957	26 reapply without prejudice upon the next block
958	958
959	959
960	960
961	961
962	962
963	963	HB3258 - 26 - LRB104 06526 AAS 16562 b
964	964
965	965
966	966	HB3258- 27 -LRB104 06526 AAS 16562 b HB3258 - 27 - LRB104 06526 AAS 16562 b
967	967	HB3258 - 27 - LRB104 06526 AAS 16562 b
968	968	1 reopening for project selection under item
969	969	2 (iii) of subparagraph (K) of this subsection
970	970	3 (c).
971	971	4 (E) The renewable energy credit delivery
972	972	5 contract shall be subject to the contract and
973	973	6 payment terms outlined in item (iv) of
974	974	7 subparagraph (L) of this subsection (c).
975	975	8 Contract instruments used for this
976	976	9 subparagraph shall contain the following
977	977	10 terms:
978	978	11 (i) Renewable energy credit prices
979	979	12 shall be fixed, without further adjustment
980	980	13 under any other provision of this Act or
981	981	14 for any other reason, at 10% lower than
982	982	15 prices applicable to the last open block
983	983	16 for this category, inclusive of any adders
984	984	17 available for achieving a minimum of 50%
985	985	18 of subscribers to the project's nameplate
986	986	19 capacity being residential or small
987	987	20 commercial customers with subscriptions of
988	988	21 below 25 kilowatts in size;
989	989	22 (ii) A requirement that a minimum of
990	990	23 50% of subscribers to the project's
991	991	24 nameplate capacity be residential or small
992	992	25 commercial customers with subscriptions of
993	993	26 below 25 kilowatts in size;
994	994
995	995
996	996
997	997
998	998
999	999	HB3258 - 27 - LRB104 06526 AAS 16562 b
1000	1000
1001	1001
1002	1002	HB3258- 28 -LRB104 06526 AAS 16562 b HB3258 - 28 - LRB104 06526 AAS 16562 b
1003	1003	HB3258 - 28 - LRB104 06526 AAS 16562 b
1004	1004	1 (iii) Permission for the ability of a
1005	1005	2 contract holder to substitute projects
1006	1006	3 with other waitlisted projects without
1007	1007	4 penalty should a project receive a
1008	1008	5 non-binding estimate of costs to construct
1009	1009	6 the interconnection facilities and any
1010	1010	7 required distribution upgrades associated
1011	1011	8 with that project of greater than 30 cents
1012	1012	9 per watt AC of that project's nameplate
1013	1013	10 capacity. In developing the applicable
1014	1014	11 contract instrument, the Agency may
1015	1015	12 consider whether other circumstances
1016	1016	13 outside of the control of the applicant
1017	1017	14 firm should also warrant project
1018	1018	15 substitution rights.
1019	1019	16 The Agency shall publish a finalized
1020	1020	17 updated renewable energy credit delivery
1021	1021	18 contract developed consistent with these terms
1022	1022	19 and conditions no less than 30 days before
1023	1023	20 applicant firms must submit their portfolio of
1024	1024	21 projects pursuant to item (D).
1025	1025	22 (F) To be eligible for an award, the
1026	1026	23 applicant firm shall certify that not less
1027	1027	24 than prevailing wage, as determined pursuant
1028	1028	25 to the Illinois Prevailing Wage Act, was or
1029	1029	26 will be paid to employees who are engaged in
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	HB3258 - 28 - LRB104 06526 AAS 16562 b
1036	1036
1037	1037
1038	1038	HB3258- 29 -LRB104 06526 AAS 16562 b HB3258 - 29 - LRB104 06526 AAS 16562 b
1039	1039	HB3258 - 29 - LRB104 06526 AAS 16562 b
1040	1040	1 construction activities associated with a
1041	1041	2 selected project.
1042	1042	3 (4) The Agency shall open the first block of
1043	1043	4 annual capacity for the category described in item
1044	1044	5 (iv) of subparagraph (K) of this paragraph (1).
1045	1045	6 The first block of annual capacity for item (iv)
1046	1046	7 shall be for at least 50 megawatts of total
1047	1047	8 nameplate capacity. Renewable energy credit prices
1048	1048	9 shall be fixed, without further adjustment under
1049	1049	10 any other provision of this Act or for any other
1050	1050	11 reason, at the price in the last open block in the
1051	1051	12 category described in item (ii) of subparagraph
1052	1052	13 (K) of this paragraph (1). Pricing for future
1053	1053	14 blocks of annual capacity for this category may be
1054	1054	15 adjusted in the Agency's second revision to its
1055	1055	16 Long-Term Renewable Resources Procurement Plan.
1056	1056	17 Projects in this category shall be subject to the
1057	1057	18 contract terms outlined in item (iv) of
1058	1058	19 subparagraph (L) of this paragraph (1).
1059	1059	20 (5) The Agency shall open the equivalent of 2
1060	1060	21 years of annual capacity for the category
1061	1061	22 described in item (v) of subparagraph (K) of this
1062	1062	23 paragraph (1). The first block of annual capacity
1063	1063	24 for item (v) shall be for at least 10 megawatts of
1064	1064	25 total nameplate capacity. Notwithstanding the
1065	1065	26 provisions of item (v) of subparagraph (K) of this
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	HB3258 - 29 - LRB104 06526 AAS 16562 b
1072	1072
1073	1073
1074	1074	HB3258- 30 -LRB104 06526 AAS 16562 b HB3258 - 30 - LRB104 06526 AAS 16562 b
1075	1075	HB3258 - 30 - LRB104 06526 AAS 16562 b
1076	1076	1 paragraph (1), for the purpose of this initial
1077	1077	2 block, the agency shall accept new project
1078	1078	3 applications intended to increase the diversity of
1079	1079	4 areas hosting community solar projects, the
1080	1080	5 business models of projects, and the size of
1081	1081	6 projects, as described by the Agency in its
1082	1082	7 long-term renewable resources procurement plan
1083	1083	8 that is approved as of the effective date of this
1084	1084	9 amendatory Act of the 102nd General Assembly.
1085	1085	10 Projects in this category shall be subject to the
1086	1086	11 contract terms outlined in item (iii) of
1087	1087	12 subsection (L) of this paragraph (1).
1088	1088	13 (6) The Agency shall open the first blocks of
1089	1089	14 annual capacity for the category described in item
1090	1090	15 (vi) of subparagraph (K) of this paragraph (1),
1091	1091	16 with allocations of capacity within the block
1092	1092	17 generally matching the historical share of block
1093	1093	18 capacity allocated between the category described
1094	1094	19 in items (i) and (ii) of subparagraph (K) of this
1095	1095	20 paragraph (1). The first two blocks of annual
1096	1096	21 capacity for item (vi) shall be for at least 75
1097	1097	22 megawatts of total nameplate capacity. The price
1098	1098	23 of renewable energy credits for the blocks of
1099	1099	24 capacity shall be 4% less than the price of the
1100	1100	25 last open blocks in the categories described in
1101	1101	26 items (i) and (ii) of subparagraph (K) of this
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	HB3258 - 30 - LRB104 06526 AAS 16562 b
1108	1108
1109	1109
1110	1110	HB3258- 31 -LRB104 06526 AAS 16562 b HB3258 - 31 - LRB104 06526 AAS 16562 b
1111	1111	HB3258 - 31 - LRB104 06526 AAS 16562 b
1112	1112	1 paragraph (1). Pricing for future blocks of annual
1113	1113	2 capacity for this category may be adjusted in the
1114	1114	3 Agency's second revision to its Long-Term
1115	1115	4 Renewable Resources Procurement Plan. Projects in
1116	1116	5 this category shall be subject to the applicable
1117	1117	6 contract terms outlined in items (ii) and (iii) of
1118	1118	7 subparagraph (L) of this paragraph (1).
1119	1119	8 (v) Upon the effective date of this amendatory Act
1120	1120	9 of the 102nd General Assembly, for all competitive
1121	1121	10 procurements and any procurements of renewable energy
1122	1122	11 credit from new utility-scale wind and new
1123	1123	12 utility-scale photovoltaic projects, the Agency shall
1124	1124	13 procure indexed renewable energy credits and direct
1125	1125	14 respondents to offer a strike price.
1126	1126	15 (1) The purchase price of the indexed
1127	1127	16 renewable energy credit payment shall be
1128	1128	17 calculated for each settlement period. That
1129	1129	18 payment, for any settlement period, shall be equal
1130	1130	19 to the difference resulting from subtracting the
1131	1131	20 strike price from the index price for that
1132	1132	21 settlement period. If this difference results in a
1133	1133	22 negative number, the indexed REC counterparty
1134	1134	23 shall owe the seller the absolute value multiplied
1135	1135	24 by the quantity of energy produced in the relevant
1136	1136	25 settlement period. If this difference results in a
1137	1137	26 positive number, the seller shall owe the indexed
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143	HB3258 - 31 - LRB104 06526 AAS 16562 b
1144	1144
1145	1145
1146	1146	HB3258- 32 -LRB104 06526 AAS 16562 b HB3258 - 32 - LRB104 06526 AAS 16562 b
1147	1147	HB3258 - 32 - LRB104 06526 AAS 16562 b
1148	1148	1 REC counterparty this amount multiplied by the
1149	1149	2 quantity of energy produced in the relevant
1150	1150	3 settlement period.
1151	1151	4 (2) Parties shall cash settle every month,
1152	1152	5 summing up all settlements (both positive and
1153	1153	6 negative, if applicable) for the prior month.
1154	1154	7 (3) To ensure funding in the annual budget
1155	1155	8 established under subparagraph (E) for indexed
1156	1156	9 renewable energy credit procurements for each year
1157	1157	10 of the term of such contracts, which must have a
1158	1158	11 minimum tenure of 20 calendar years, the
1159	1159	12 procurement administrator, Agency, Commission
1160	1160	13 staff, and procurement monitor shall quantify the
1161	1161	14 annual cost of the contract by utilizing an
1162	1162	15 industry-standard, third-party forward price curve
1163	1163	16 for energy at the appropriate hub or load zone,
1164	1164	17 including the estimated magnitude and timing of
1165	1165	18 the price effects related to federal carbon
1166	1166	19 controls. Each forward price curve shall contain a
1167	1167	20 specific value of the forecasted market price of
1168	1168	21 electricity for each annual delivery year of the
1169	1169	22 contract. For procurement planning purposes, the
1170	1170	23 impact on the annual budget for the cost of
1171	1171	24 indexed renewable energy credits for each delivery
1172	1172	25 year shall be determined as the expected annual
1173	1173	26 contract expenditure for that year, equaling the
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178
1179	1179	HB3258 - 32 - LRB104 06526 AAS 16562 b
1180	1180
1181	1181
1182	1182	HB3258- 33 -LRB104 06526 AAS 16562 b HB3258 - 33 - LRB104 06526 AAS 16562 b
1183	1183	HB3258 - 33 - LRB104 06526 AAS 16562 b
1184	1184	1 difference between (i) the sum across all relevant
1185	1185	2 contracts of the applicable strike price
1186	1186	3 multiplied by contract quantity and (ii) the sum
1187	1187	4 across all relevant contracts of the forward price
1188	1188	5 curve for the applicable load zone for that year
1189	1189	6 multiplied by contract quantity. The contracting
1190	1190	7 utility shall not assume an obligation in excess
1191	1191	8 of the estimated annual cost of the contracts for
1192	1192	9 indexed renewable energy credits. Forward curves
1193	1193	10 shall be revised on an annual basis as updated
1194	1194	11 forward price curves are released and filed with
1195	1195	12 the Commission in the proceeding approving the
1196	1196	13 Agency's most recent long-term renewable resources
1197	1197	14 procurement plan. If the expected contract spend
1198	1198	15 is higher or lower than the total quantity of
1199	1199	16 contracts multiplied by the forward price curve
1200	1200	17 value for that year, the forward price curve shall
1201	1201	18 be updated by the procurement administrator, in
1202	1202	19 consultation with the Agency, Commission staff,
1203	1203	20 and procurement monitors, using then-currently
1204	1204	21 available price forecast data and additional
1205	1205	22 budget dollars shall be obligated or reobligated
1206	1206	23 as appropriate.
1207	1207	24 (4) To ensure that indexed renewable energy
1208	1208	25 credit prices remain predictable and affordable,
1209	1209	26 the Agency may consider the institution of a price
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214
1215	1215	HB3258 - 33 - LRB104 06526 AAS 16562 b
1216	1216
1217	1217
1218	1218	HB3258- 34 -LRB104 06526 AAS 16562 b HB3258 - 34 - LRB104 06526 AAS 16562 b
1219	1219	HB3258 - 34 - LRB104 06526 AAS 16562 b
1220	1220	1 collar on REC prices paid under indexed renewable
1221	1221	2 energy credit procurements establishing floor and
1222	1222	3 ceiling REC prices applicable to indexed REC
1223	1223	4 contract prices. Any price collars applicable to
1224	1224	5 indexed REC procurements shall be proposed by the
1225	1225	6 Agency through its long-term renewable resources
1226	1226	7 procurement plan.
1227	1227	8 (vi) All procurements under this subparagraph (G),
1228	1228	9 including the procurement of renewable energy credits
1229	1229	10 from hydropower facilities, shall comply with the
1230	1230	11 geographic requirements in subparagraph (I) of this
1231	1231	12 paragraph (1) and shall follow the procurement
1232	1232	13 processes and procedures described in this Section and
1233	1233	14 Section 16-111.5 of the Public Utilities Act to the
1234	1234	15 extent practicable, and these processes and procedures
1235	1235	16 may be expedited to accommodate the schedule
1236	1236	17 established by this subparagraph (G).
1237	1237	18 (vii) On and after the effective date of this
1238	1238	19 amendatory Act of the 103rd General Assembly, for all
1239	1239	20 procurements of renewable energy credits from
1240	1240	21 hydropower facilities, the Agency shall establish
1241	1241	22 contract terms designed to optimize existing
1242	1242	23 hydropower facilities through modernization or
1243	1243	24 retooling and establish new hydropower facilities at
1244	1244	25 existing dams. Procurements made under this item (vii)
1245	1245	26 shall prioritize projects located in designated
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250
1251	1251	HB3258 - 34 - LRB104 06526 AAS 16562 b
1252	1252
1253	1253
1254	1254	HB3258- 35 -LRB104 06526 AAS 16562 b HB3258 - 35 - LRB104 06526 AAS 16562 b
1255	1255	HB3258 - 35 - LRB104 06526 AAS 16562 b
1256	1256	1 environmental justice communities, as defined in
1257	1257	2 subsection (b) of Section 1-56 of this Act, or in
1258	1258	3 projects located in units of local government with
1259	1259	4 median incomes that do not exceed 82% of the median
1260	1260	5 income of the State.
1261	1261	6 (H) The procurement of renewable energy resources for
1262	1262	7 a given delivery year shall be reduced as described in
1263	1263	8 this subparagraph (H) if an alternative retail electric
1264	1264	9 supplier meets the requirements described in this
1265	1265	10 subparagraph (H).
1266	1266	11 (i) Within 45 days after June 1, 2017 (the
1267	1267	12 effective date of Public Act 99-906), an alternative
1268	1268	13 retail electric supplier or its successor shall submit
1269	1269	14 an informational filing to the Illinois Commerce
1270	1270	15 Commission certifying that, as of December 31, 2015,
1271	1271	16 the alternative retail electric supplier owned one or
1272	1272	17 more electric generating facilities that generates
1273	1273	18 renewable energy resources as defined in Section 1-10
1274	1274	19 of this Act, provided that such facilities are not
1275	1275	20 powered by wind or photovoltaics, and the facilities
1276	1276	21 generate one renewable energy credit for each
1277	1277	22 megawatthour of energy produced from the facility.
1278	1278	23 The informational filing shall identify each
1279	1279	24 facility that was eligible to satisfy the alternative
1280	1280	25 retail electric supplier's obligations under Section
1281	1281	26 16-115D of the Public Utilities Act as described in
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286
1287	1287	HB3258 - 35 - LRB104 06526 AAS 16562 b
1288	1288
1289	1289
1290	1290	HB3258- 36 -LRB104 06526 AAS 16562 b HB3258 - 36 - LRB104 06526 AAS 16562 b
1291	1291	HB3258 - 36 - LRB104 06526 AAS 16562 b
1292	1292	1 this item (i).
1293	1293	2 (ii) For a given delivery year, the alternative
1294	1294	3 retail electric supplier may elect to supply its
1295	1295	4 retail customers with renewable energy credits from
1296	1296	5 the facility or facilities described in item (i) of
1297	1297	6 this subparagraph (H) that continue to be owned by the
1298	1298	7 alternative retail electric supplier.
1299	1299	8 (iii) The alternative retail electric supplier
1300	1300	9 shall notify the Agency and the applicable utility, no
1301	1301	10 later than February 28 of the year preceding the
1302	1302	11 applicable delivery year or 15 days after June 1, 2017
1303	1303	12 (the effective date of Public Act 99-906), whichever
1304	1304	13 is later, of its election under item (ii) of this
1305	1305	14 subparagraph (H) to supply renewable energy credits to
1306	1306	15 retail customers of the utility. Such election shall
1307	1307	16 identify the amount of renewable energy credits to be
1308	1308	17 supplied by the alternative retail electric supplier
1309	1309	18 to the utility's retail customers and the source of
1310	1310	19 the renewable energy credits identified in the
1311	1311	20 informational filing as described in item (i) of this
1312	1312	21 subparagraph (H), subject to the following
1313	1313	22 limitations:
1314	1314	23 For the delivery year beginning June 1, 2018,
1315	1315	24 the maximum amount of renewable energy credits to
1316	1316	25 be supplied by an alternative retail electric
1317	1317	26 supplier under this subparagraph (H) shall be 68%
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322
1323	1323	HB3258 - 36 - LRB104 06526 AAS 16562 b
1324	1324
1325	1325
1326	1326	HB3258- 37 -LRB104 06526 AAS 16562 b HB3258 - 37 - LRB104 06526 AAS 16562 b
1327	1327	HB3258 - 37 - LRB104 06526 AAS 16562 b
1328	1328	1 multiplied by 25% multiplied by 14.5% multiplied
1329	1329	2 by the amount of metered electricity
1330	1330	3 (megawatt-hours) delivered by the alternative
1331	1331	4 retail electric supplier to Illinois retail
1332	1332	5 customers during the delivery year ending May 31,
1333	1333	6 2016.
1334	1334	7 For delivery years beginning June 1, 2019 and
1335	1335	8 each year thereafter, the maximum amount of
1336	1336	9 renewable energy credits to be supplied by an
1337	1337	10 alternative retail electric supplier under this
1338	1338	11 subparagraph (H) shall be 68% multiplied by 50%
1339	1339	12 multiplied by 16% multiplied by the amount of
1340	1340	13 metered electricity (megawatt-hours) delivered by
1341	1341	14 the alternative retail electric supplier to
1342	1342	15 Illinois retail customers during the delivery year
1343	1343	16 ending May 31, 2016, provided that the 16% value
1344	1344	17 shall increase by 1.5% each delivery year
1345	1345	18 thereafter to 25% by the delivery year beginning
1346	1346	19 June 1, 2025, and thereafter the 25% value shall
1347	1347	20 apply to each delivery year.
1348	1348	21 For each delivery year, the total amount of
1349	1349	22 renewable energy credits supplied by all alternative
1350	1350	23 retail electric suppliers under this subparagraph (H)
1351	1351	24 shall not exceed 9% of the Illinois target renewable
1352	1352	25 energy credit quantity. The Illinois target renewable
1353	1353	26 energy credit quantity for the delivery year beginning
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358
1359	1359	HB3258 - 37 - LRB104 06526 AAS 16562 b
1360	1360
1361	1361
1362	1362	HB3258- 38 -LRB104 06526 AAS 16562 b HB3258 - 38 - LRB104 06526 AAS 16562 b
1363	1363	HB3258 - 38 - LRB104 06526 AAS 16562 b
1364	1364	1 June 1, 2018 is 14.5% multiplied by the total amount of
1365	1365	2 metered electricity (megawatt-hours) delivered in the
1366	1366	3 delivery year immediately preceding that delivery
1367	1367	4 year, provided that the 14.5% shall increase by 1.5%
1368	1368	5 each delivery year thereafter to 25% by the delivery
1369	1369	6 year beginning June 1, 2025, and thereafter the 25%
1370	1370	7 value shall apply to each delivery year.
1371	1371	8 If the requirements set forth in items (i) through
1372	1372	9 (iii) of this subparagraph (H) are met, the charges
1373	1373	10 that would otherwise be applicable to the retail
1374	1374	11 customers of the alternative retail electric supplier
1375	1375	12 under paragraph (6) of this subsection (c) for the
1376	1376	13 applicable delivery year shall be reduced by the ratio
1377	1377	14 of the quantity of renewable energy credits supplied
1378	1378	15 by the alternative retail electric supplier compared
1379	1379	16 to that supplier's target renewable energy credit
1380	1380	17 quantity. The supplier's target renewable energy
1381	1381	18 credit quantity for the delivery year beginning June
1382	1382	19 1, 2018 is 14.5% multiplied by the total amount of
1383	1383	20 metered electricity (megawatt-hours) delivered by the
1384	1384	21 alternative retail supplier in that delivery year,
1385	1385	22 provided that the 14.5% shall increase by 1.5% each
1386	1386	23 delivery year thereafter to 25% by the delivery year
1387	1387	24 beginning June 1, 2025, and thereafter the 25% value
1388	1388	25 shall apply to each delivery year.
1389	1389	26 On or before April 1 of each year, the Agency shall
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394
1395	1395	HB3258 - 38 - LRB104 06526 AAS 16562 b
1396	1396
1397	1397
1398	1398	HB3258- 39 -LRB104 06526 AAS 16562 b HB3258 - 39 - LRB104 06526 AAS 16562 b
1399	1399	HB3258 - 39 - LRB104 06526 AAS 16562 b
1400	1400	1 annually publish a report on its website that
1401	1401	2 identifies the aggregate amount of renewable energy
1402	1402	3 credits supplied by alternative retail electric
1403	1403	4 suppliers under this subparagraph (H).
1404	1404	5 (I) The Agency shall design its long-term renewable
1405	1405	6 energy procurement plan to maximize the State's interest
1406	1406	7 in the health, safety, and welfare of its residents,
1407	1407	8 including but not limited to minimizing sulfur dioxide,
1408	1408	9 nitrogen oxide, particulate matter and other pollution
1409	1409	10 that adversely affects public health in this State,
1410	1410	11 increasing fuel and resource diversity in this State,
1411	1411	12 enhancing the reliability and resiliency of the
1412	1412	13 electricity distribution system in this State, meeting
1413	1413	14 goals to limit carbon dioxide emissions under federal or
1414	1414	15 State law, and contributing to a cleaner and healthier
1415	1415	16 environment for the citizens of this State. In order to
1416	1416	17 further these legislative purposes, renewable energy
1417	1417	18 credits shall be eligible to be counted toward the
1418	1418	19 renewable energy requirements of this subsection (c) if
1419	1419	20 they are generated from facilities located in this State.
1420	1420	21 The Agency may qualify renewable energy credits from
1421	1421	22 facilities located in states adjacent to Illinois or
1422	1422	23 renewable energy credits associated with the electricity
1423	1423	24 generated by a utility-scale wind energy facility or
1424	1424	25 utility-scale photovoltaic facility and transmitted by a
1425	1425	26 qualifying direct current project described in subsection
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430
1431	1431	HB3258 - 39 - LRB104 06526 AAS 16562 b
1432	1432
1433	1433
1434	1434	HB3258- 40 -LRB104 06526 AAS 16562 b HB3258 - 40 - LRB104 06526 AAS 16562 b
1435	1435	HB3258 - 40 - LRB104 06526 AAS 16562 b
1436	1436	1 (b-5) of Section 8-406 of the Public Utilities Act to a
1437	1437	2 delivery point on the electric transmission grid located
1438	1438	3 in this State or a state adjacent to Illinois, if the
1439	1439	4 generator demonstrates and the Agency determines that the
1440	1440	5 operation of such facility or facilities will help promote
1441	1441	6 the State's interest in the health, safety, and welfare of
1442	1442	7 its residents based on the public interest criteria
1443	1443	8 described above. For the purposes of this Section,
1444	1444	9 renewable resources that are delivered via a high voltage
1445	1445	10 direct current converter station located in Illinois shall
1446	1446	11 be deemed generated in Illinois at the time and location
1447	1447	12 the energy is converted to alternating current by the high
1448	1448	13 voltage direct current converter station if the high
1449	1449	14 voltage direct current transmission line: (i) after the
1450	1450	15 effective date of this amendatory Act of the 102nd General
1451	1451	16 Assembly, was constructed with a project labor agreement;
1452	1452	17 (ii) is capable of transmitting electricity at 525kv;
1453	1453	18 (iii) has an Illinois converter station located and
1454	1454	19 interconnected in the region of the PJM Interconnection,
1455	1455	20 LLC; (iv) does not operate as a public utility; and (v) if
1456	1456	21 the high voltage direct current transmission line was
1457	1457	22 energized after June 1, 2023. To ensure that the public
1458	1458	23 interest criteria are applied to the procurement and given
1459	1459	24 full effect, the Agency's long-term procurement plan shall
1460	1460	25 describe in detail how each public interest factor shall
1461	1461	26 be considered and weighted for facilities located in
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466
1467	1467	HB3258 - 40 - LRB104 06526 AAS 16562 b
1468	1468
1469	1469
1470	1470	HB3258- 41 -LRB104 06526 AAS 16562 b HB3258 - 41 - LRB104 06526 AAS 16562 b
1471	1471	HB3258 - 41 - LRB104 06526 AAS 16562 b
1472	1472	1 states adjacent to Illinois.
1473	1473	2 (J) In order to promote the competitive development of
1474	1474	3 renewable energy resources in furtherance of the State's
1475	1475	4 interest in the health, safety, and welfare of its
1476	1476	5 residents, renewable energy credits shall not be eligible
1477	1477	6 to be counted toward the renewable energy requirements of
1478	1478	7 this subsection (c) if they are sourced from a generating
1479	1479	8 unit whose costs were being recovered through rates
1480	1480	9 regulated by this State or any other state or states on or
1481	1481	10 after January 1, 2017. Each contract executed to purchase
1482	1482	11 renewable energy credits under this subsection (c) shall
1483	1483	12 provide for the contract's termination if the costs of the
1484	1484	13 generating unit supplying the renewable energy credits
1485	1485	14 subsequently begin to be recovered through rates regulated
1486	1486	15 by this State or any other state or states; and each
1487	1487	16 contract shall further provide that, in that event, the
1488	1488	17 supplier of the credits must return 110% of all payments
1489	1489	18 received under the contract. Amounts returned under the
1490	1490	19 requirements of this subparagraph (J) shall be retained by
1491	1491	20 the utility and all of these amounts shall be used for the
1492	1492	21 procurement of additional renewable energy credits from
1493	1493	22 new wind or new photovoltaic resources as defined in this
1494	1494	23 subsection (c). The long-term plan shall provide that
1495	1495	24 these renewable energy credits shall be procured in the
1496	1496	25 next procurement event.
1497	1497	26 Notwithstanding the limitations of this subparagraph
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502
1503	1503	HB3258 - 41 - LRB104 06526 AAS 16562 b
1504	1504
1505	1505
1506	1506	HB3258- 42 -LRB104 06526 AAS 16562 b HB3258 - 42 - LRB104 06526 AAS 16562 b
1507	1507	HB3258 - 42 - LRB104 06526 AAS 16562 b
1508	1508	1 (J), renewable energy credits sourced from generating
1509	1509	2 units that are constructed, purchased, owned, or leased by
1510	1510	3 an electric utility as part of an approved project,
1511	1511	4 program, or pilot under Section 1-56 of this Act shall be
1512	1512	5 eligible to be counted toward the renewable energy
1513	1513	6 requirements of this subsection (c), regardless of how the
1514	1514	7 costs of these units are recovered. As long as a
1515	1515	8 generating unit or an identifiable portion of a generating
1516	1516	9 unit has not had and does not have its costs recovered
1517	1517	10 through rates regulated by this State or any other state,
1518	1518	11 HVDC renewable energy credits associated with that
1519	1519	12 generating unit or identifiable portion thereof shall be
1520	1520	13 eligible to be counted toward the renewable energy
1521	1521	14 requirements of this subsection (c).
1522	1522	15 (K) The long-term renewable resources procurement plan
1523	1523	16 developed by the Agency in accordance with subparagraph
1524	1524	17 (A) of this paragraph (1) shall include an Adjustable
1525	1525	18 Block program for the procurement of renewable energy
1526	1526	19 credits from new photovoltaic projects that are
1527	1527	20 distributed renewable energy generation devices or new
1528	1528	21 photovoltaic community renewable generation projects. The
1529	1529	22 Adjustable Block program shall be generally designed to
1530	1530	23 provide for the steady, predictable, and sustainable
1531	1531	24 growth of new solar photovoltaic development in Illinois.
1532	1532	25 To this end, the Adjustable Block program shall provide a
1533	1533	26 transparent annual schedule of prices and quantities to
1534	1534
1535	1535
1536	1536
1537	1537
1538	1538
1539	1539	HB3258 - 42 - LRB104 06526 AAS 16562 b
1540	1540
1541	1541
1542	1542	HB3258- 43 -LRB104 06526 AAS 16562 b HB3258 - 43 - LRB104 06526 AAS 16562 b
1543	1543	HB3258 - 43 - LRB104 06526 AAS 16562 b
1544	1544	1 enable the photovoltaic market to scale up and for
1545	1545	2 renewable energy credit prices to adjust at a predictable
1546	1546	3 rate over time. The prices set by the Adjustable Block
1547	1547	4 program can be reflected as a set value or as the product
1548	1548	5 of a formula.
1549	1549	6 The Adjustable Block program shall include for each
1550	1550	7 category of eligible projects for each delivery year: a
1551	1551	8 single block of nameplate capacity, a price for renewable
1552	1552	9 energy credits within that block, and the terms and
1553	1553	10 conditions for securing a spot on a waitlist once the
1554	1554	11 block is fully committed or reserved. Except as outlined
1555	1555	12 below, the waitlist of projects in a given year will carry
1556	1556	13 over to apply to the subsequent year when another block is
1557	1557	14 opened. Only projects energized on or after June 1, 2017
1558	1558	15 shall be eligible for the Adjustable Block program. For
1559	1559	16 each category for each delivery year the Agency shall
1560	1560	17 determine the amount of generation capacity in each block,
1561	1561	18 and the purchase price for each block, provided that the
1562	1562	19 purchase price provided and the total amount of generation
1563	1563	20 in all blocks for all categories shall be sufficient to
1564	1564	21 meet the goals in this subsection (c). The Agency shall
1565	1565	22 strive to issue a single block sized to provide for
1566	1566	23 stability and market growth. The Agency shall establish
1567	1567	24 program eligibility requirements that ensure that projects
1568	1568	25 that enter the program are sufficiently mature to indicate
1569	1569	26 a demonstrable path to completion. The Agency may
1570	1570
1571	1571
1572	1572
1573	1573
1574	1574
1575	1575	HB3258 - 43 - LRB104 06526 AAS 16562 b
1576	1576
1577	1577
1578	1578	HB3258- 44 -LRB104 06526 AAS 16562 b HB3258 - 44 - LRB104 06526 AAS 16562 b
1579	1579	HB3258 - 44 - LRB104 06526 AAS 16562 b
1580	1580	1 periodically review its prior decisions establishing the
1581	1581	2 amount of generation capacity in each block, and the
1582	1582	3 purchase price for each block, and may propose, on an
1583	1583	4 expedited basis, changes to these previously set values,
1584	1584	5 including but not limited to redistributing these amounts
1585	1585	6 and the available funds as necessary and appropriate,
1586	1586	7 subject to Commission approval as part of the periodic
1587	1587	8 plan revision process described in Section 16-111.5 of the
1588	1588	9 Public Utilities Act. The Agency may define different
1589	1589	10 block sizes, purchase prices, or other distinct terms and
1590	1590	11 conditions for projects located in different utility
1591	1591	12 service territories if the Agency deems it necessary to
1592	1592	13 meet the goals in this subsection (c).
1593	1593	14 The Adjustable Block program shall include the
1594	1594	15 following categories in at least the following amounts:
1595	1595	16 (i) At least 20% from distributed renewable energy
1596	1596	17 generation devices with a nameplate capacity of no
1597	1597	18 more than 25 kilowatts.
1598	1598	19 (ii) At least 20% from distributed renewable
1599	1599	20 energy generation devices with a nameplate capacity of
1600	1600	21 more than 25 kilowatts and no more than 5,000
1601	1601	22 kilowatts. The Agency may create sub-categories within
1602	1602	23 this category to account for the differences between
1603	1603	24 projects for small commercial customers, large
1604	1604	25 commercial customers, and public or non-profit
1605	1605	26 customers.
1606	1606
1607	1607
1608	1608
1609	1609
1610	1610
1611	1611	HB3258 - 44 - LRB104 06526 AAS 16562 b
1612	1612
1613	1613
1614	1614	HB3258- 45 -LRB104 06526 AAS 16562 b HB3258 - 45 - LRB104 06526 AAS 16562 b
1615	1615	HB3258 - 45 - LRB104 06526 AAS 16562 b
1616	1616	1 (iii) At least 30% from photovoltaic community
1617	1617	2 renewable generation projects. Capacity for this
1618	1618	3 category for the first 2 delivery years after the
1619	1619	4 effective date of this amendatory Act of the 102nd
1620	1620	5 General Assembly shall be allocated to waitlist
1621	1621	6 projects as provided in paragraph (3) of item (iv) of
1622	1622	7 subparagraph (G). Starting in the third delivery year
1623	1623	8 after the effective date of this amendatory Act of the
1624	1624	9 102nd General Assembly or earlier if the Agency
1625	1625	10 determines there is additional capacity needed for to
1626	1626	11 meet previous delivery year requirements, the
1627	1627	12 following shall apply:
1628	1628	13 (1) the Agency shall select projects on a
1629	1629	14 first-come, first-serve basis, however the Agency
1630	1630	15 may suggest additional methods to prioritize
1631	1631	16 projects that are submitted at the same time;
1632	1632	17 (2) projects shall have subscriptions of 25 kW
1633	1633	18 or less for at least 50% of the facility's
1634	1634	19 nameplate capacity and the Agency shall price the
1635	1635	20 renewable energy credits with that as a factor;
1636	1636	21 (3) projects shall not be colocated with one
1637	1637	22 or more other community renewable generation
1638	1638	23 projects, as defined in the Agency's first revised
1639	1639	24 long-term renewable resources procurement plan
1640	1640	25 approved by the Commission on February 18, 2020,
1641	1641	26 such that the aggregate nameplate capacity exceeds
1642	1642
1643	1643
1644	1644
1645	1645
1646	1646
1647	1647	HB3258 - 45 - LRB104 06526 AAS 16562 b
1648	1648
1649	1649
1650	1650	HB3258- 46 -LRB104 06526 AAS 16562 b HB3258 - 46 - LRB104 06526 AAS 16562 b
1651	1651	HB3258 - 46 - LRB104 06526 AAS 16562 b
1652	1652	1 5,000 kilowatts; and
1653	1653	2 (4) projects greater than 2 MW may not apply
1654	1654	3 until after the approval of the Agency's revised
1655	1655	4 Long-Term Renewable Resources Procurement Plan
1656	1656	5 after the effective date of this amendatory Act of
1657	1657	6 the 102nd General Assembly.
1658	1658	7 (iv) At least 15% from distributed renewable
1659	1659	8 generation devices or photovoltaic community renewable
1660	1660	9 generation projects installed on public school land.
1661	1661	10 The Agency may create subcategories within this
1662	1662	11 category to account for the differences between
1663	1663	12 project size or location. Projects located within
1664	1664	13 environmental justice communities or within
1665	1665	14 Organizational Units that fall within Tier 1 or Tier 2
1666	1666	15 shall be given priority. Each of the Agency's periodic
1667	1667	16 updates to its long-term renewable resources
1668	1668	17 procurement plan to incorporate the procurement
1669	1669	18 described in this subparagraph (iv) shall also include
1670	1670	19 the proposed quantities or blocks, pricing, and
1671	1671	20 contract terms applicable to the procurement as
1672	1672	21 indicated herein. In each such update and procurement,
1673	1673	22 the Agency shall set the renewable energy credit price
1674	1674	23 and establish payment terms for the renewable energy
1675	1675	24 credits procured pursuant to this subparagraph (iv)
1676	1676	25 that make it feasible and affordable for public
1677	1677	26 schools to install photovoltaic distributed renewable
1678	1678
1679	1679
1680	1680
1681	1681
1682	1682
1683	1683	HB3258 - 46 - LRB104 06526 AAS 16562 b
1684	1684
1685	1685
1686	1686	HB3258- 47 -LRB104 06526 AAS 16562 b HB3258 - 47 - LRB104 06526 AAS 16562 b
1687	1687	HB3258 - 47 - LRB104 06526 AAS 16562 b
1688	1688	1 energy devices on their premises, including, but not
1689	1689	2 limited to, those public schools subject to the
1690	1690	3 prioritization provisions of this subparagraph. For
1691	1691	4 the purposes of this item (iv):
1692	1692	5 "Environmental Justice Community" shall have the
1693	1693	6 same meaning set forth in the Agency's long-term
1694	1694	7 renewable resources procurement plan;
1695	1695	8 "Organization Unit", "Tier 1" and "Tier 2" shall
1696	1696	9 have the meanings set for in Section 18-8.15 of the
1697	1697	10 School Code;
1698	1698	11 "Public schools" shall have the meaning set forth
1699	1699	12 in Section 1-3 of the School Code and includes public
1700	1700	13 institutions of higher education, as defined in the
1701	1701	14 Board of Higher Education Act.
1702	1702	15 (v) At least 5% from community-driven community
1703	1703	16 solar projects intended to provide more direct and
1704	1704	17 tangible connection and benefits to the communities
1705	1705	18 which they serve or in which they operate and,
1706	1706	19 additionally, to increase the variety of community
1707	1707	20 solar locations, models, and options in Illinois. As
1708	1708	21 part of its long-term renewable resources procurement
1709	1709	22 plan, the Agency shall develop selection criteria for
1710	1710	23 projects participating in this category. Nothing in
1711	1711	24 this Section shall preclude the Agency from creating a
1712	1712	25 selection process that maximizes community ownership
1713	1713	26 and community benefits in selecting projects to
1714	1714
1715	1715
1716	1716
1717	1717
1718	1718
1719	1719	HB3258 - 47 - LRB104 06526 AAS 16562 b
1720	1720
1721	1721
1722	1722	HB3258- 48 -LRB104 06526 AAS 16562 b HB3258 - 48 - LRB104 06526 AAS 16562 b
1723	1723	HB3258 - 48 - LRB104 06526 AAS 16562 b
1724	1724	1 receive renewable energy credits. Selection criteria
1725	1725	2 shall include:
1726	1726	3 (1) community ownership or community
1727	1727	4 wealth-building;
1728	1728	5 (2) additional direct and indirect community
1729	1729	6 benefit, beyond project participation as a
1730	1730	7 subscriber, including, but not limited to,
1731	1731	8 economic, environmental, social, cultural, and
1732	1732	9 physical benefits;
1733	1733	10 (3) meaningful involvement in project
1734	1734	11 organization and development by community members
1735	1735	12 or nonprofit organizations or public entities
1736	1736	13 located in or serving the community;
1737	1737	14 (4) engagement in project operations and
1738	1738	15 management by nonprofit organizations, public
1739	1739	16 entities, or community members; and
1740	1740	17 (5) whether a project is developed in response
1741	1741	18 to a site-specific RFP developed by community
1742	1742	19 members or a nonprofit organization or public
1743	1743	20 entity located in or serving the community.
1744	1744	21 Selection criteria may also prioritize projects
1745	1745	22 that:
1746	1746	23 (1) are developed in collaboration with or to
1747	1747	24 provide complementary opportunities for the Clean
1748	1748	25 Jobs Workforce Network Program, the Illinois
1749	1749	26 Climate Works Preapprenticeship Program, the
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754
1755	1755	HB3258 - 48 - LRB104 06526 AAS 16562 b
1756	1756
1757	1757
1758	1758	HB3258- 49 -LRB104 06526 AAS 16562 b HB3258 - 49 - LRB104 06526 AAS 16562 b
1759	1759	HB3258 - 49 - LRB104 06526 AAS 16562 b
1760	1760	1 Returning Residents Clean Jobs Training Program,
1761	1761	2 the Clean Energy Contractor Incubator Program, or
1762	1762	3 the Clean Energy Primes Contractor Accelerator
1763	1763	4 Program;
1764	1764	5 (2) increase the diversity of locations of
1765	1765	6 community solar projects in Illinois, including by
1766	1766	7 locating in urban areas and population centers;
1767	1767	8 (3) are located in Equity Investment Eligible
1768	1768	9 Communities;
1769	1769	10 (4) are not greenfield projects;
1770	1770	11 (5) serve only local subscribers;
1771	1771	12 (6) have a nameplate capacity that does not
1772	1772	13 exceed 500 kW;
1773	1773	14 (7) are developed by an equity eligible
1774	1774	15 contractor; or
1775	1775	16 (8) otherwise meaningfully advance the goals
1776	1776	17 of providing more direct and tangible connection
1777	1777	18 and benefits to the communities which they serve
1778	1778	19 or in which they operate and increasing the
1779	1779	20 variety of community solar locations, models, and
1780	1780	21 options in Illinois.
1781	1781	22 For the purposes of this item (v):
1782	1782	23 "Community" means a social unit in which people
1783	1783	24 come together regularly to effect change; a social
1784	1784	25 unit in which participants are marked by a cooperative
1785	1785	26 spirit, a common purpose, or shared interests or
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790
1791	1791	HB3258 - 49 - LRB104 06526 AAS 16562 b
1792	1792
1793	1793
1794	1794	HB3258- 50 -LRB104 06526 AAS 16562 b HB3258 - 50 - LRB104 06526 AAS 16562 b
1795	1795	HB3258 - 50 - LRB104 06526 AAS 16562 b
1796	1796	1 characteristics; or a space understood by its
1797	1797	2 residents to be delineated through geographic
1798	1798	3 boundaries or landmarks.
1799	1799	4 "Community benefit" means a range of services and
1800	1800	5 activities that provide affirmative, economic,
1801	1801	6 environmental, social, cultural, or physical value to
1802	1802	7 a community; or a mechanism that enables economic
1803	1803	8 development, high-quality employment, and education
1804	1804	9 opportunities for local workers and residents, or
1805	1805	10 formal monitoring and oversight structures such that
1806	1806	11 community members may ensure that those services and
1807	1807	12 activities respond to local knowledge and needs.
1808	1808	13 "Community ownership" means an arrangement in
1809	1809	14 which an electric generating facility is, or over time
1810	1810	15 will be, in significant part, owned collectively by
1811	1811	16 members of the community to which an electric
1812	1812	17 generating facility provides benefits; members of that
1813	1813	18 community participate in decisions regarding the
1814	1814	19 governance, operation, maintenance, and upgrades of
1815	1815	20 and to that facility; and members of that community
1816	1816	21 benefit from regular use of that facility.
1817	1817	22 Terms and guidance within these criteria that are
1818	1818	23 not defined in this item (v) shall be defined by the
1819	1819	24 Agency, with stakeholder input, during the development
1820	1820	25 of the Agency's long-term renewable resources
1821	1821	26 procurement plan. The Agency shall develop regular
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826
1827	1827	HB3258 - 50 - LRB104 06526 AAS 16562 b
1828	1828
1829	1829
1830	1830	HB3258- 51 -LRB104 06526 AAS 16562 b HB3258 - 51 - LRB104 06526 AAS 16562 b
1831	1831	HB3258 - 51 - LRB104 06526 AAS 16562 b
1832	1832	1 opportunities for projects to submit applications for
1833	1833	2 projects under this category, and develop selection
1834	1834	3 criteria that gives preference to projects that better
1835	1835	4 meet individual criteria as well as projects that
1836	1836	5 address a higher number of criteria.
1837	1837	6 (vi) At least 10% from distributed renewable
1838	1838	7 energy generation devices, which includes distributed
1839	1839	8 renewable energy devices with a nameplate capacity
1840	1840	9 under 5,000 kilowatts or photovoltaic community
1841	1841	10 renewable generation projects, from applicants that
1842	1842	11 are equity eligible contractors. The Agency may create
1843	1843	12 subcategories within this category to account for the
1844	1844	13 differences between project size and type. The Agency
1845	1845	14 shall propose to increase the percentage in this item
1846	1846	15 (vi) over time to 40% based on factors, including, but
1847	1847	16 not limited to, the number of equity eligible
1848	1848	17 contractors and capacity used in this item (vi) in
1849	1849	18 previous delivery years.
1850	1850	19 The Agency shall propose a payment structure for
1851	1851	20 contracts executed pursuant to this paragraph under
1852	1852	21 which, upon a demonstration of qualification or need,
1853	1853	22 applicant firms are advanced capital disbursed after
1854	1854	23 contract execution but before the contracted project's
1855	1855	24 energization. The amount or percentage of capital
1856	1856	25 advanced prior to project energization shall be
1857	1857	26 sufficient to both cover any increase in development
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862
1863	1863	HB3258 - 51 - LRB104 06526 AAS 16562 b
1864	1864
1865	1865
1866	1866	HB3258- 52 -LRB104 06526 AAS 16562 b HB3258 - 52 - LRB104 06526 AAS 16562 b
1867	1867	HB3258 - 52 - LRB104 06526 AAS 16562 b
1868	1868	1 costs resulting from prevailing wage requirements or
1869	1869	2 project-labor agreements, and designed to overcome
1870	1870	3 barriers in access to capital faced by equity eligible
1871	1871	4 contractors. The amount or percentage of advanced
1872	1872	5 capital may vary by subcategory within this category
1873	1873	6 and by an applicant's demonstration of need, with such
1874	1874	7 levels to be established through the Long-Term
1875	1875	8 Renewable Resources Procurement Plan authorized under
1876	1876	9 subparagraph (A) of paragraph (1) of subsection (c) of
1877	1877	10 this Section.
1878	1878	11 Contracts developed featuring capital advanced
1879	1879	12 prior to a project's energization shall feature
1880	1880	13 provisions to ensure both the successful development
1881	1881	14 of applicant projects and the delivery of the
1882	1882	15 renewable energy credits for the full term of the
1883	1883	16 contract, including ongoing collateral requirements
1884	1884	17 and other provisions deemed necessary by the Agency,
1885	1885	18 and may include energization timelines longer than for
1886	1886	19 comparable project types. The percentage or amount of
1887	1887	20 capital advanced prior to project energization shall
1888	1888	21 not operate to increase the overall contract value,
1889	1889	22 however contracts executed under this subparagraph may
1890	1890	23 feature renewable energy credit prices higher than
1891	1891	24 those offered to similar projects participating in
1892	1892	25 other categories. Capital advanced prior to
1893	1893	26 energization shall serve to reduce the ratable
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898
1899	1899	HB3258 - 52 - LRB104 06526 AAS 16562 b
1900	1900
1901	1901
1902	1902	HB3258- 53 -LRB104 06526 AAS 16562 b HB3258 - 53 - LRB104 06526 AAS 16562 b
1903	1903	HB3258 - 53 - LRB104 06526 AAS 16562 b
1904	1904	1 payments made after energization under items (ii) and
1905	1905	2 (iii) of subparagraph (L) or payments made for each
1906	1906	3 renewable energy credit delivery under item (iv) of
1907	1907	4 subparagraph (L).
1908	1908	5 (vii) The remaining capacity shall be allocated by
1909	1909	6 the Agency in order to respond to market demand. The
1910	1910	7 Agency shall allocate any discretionary capacity prior
1911	1911	8 to the beginning of each delivery year.
1912	1912	9 To the extent there is uncontracted capacity from any
1913	1913	10 block in any of categories (i) through (vi) at the end of a
1914	1914	11 delivery year, the Agency shall redistribute that capacity
1915	1915	12 to one or more other categories giving priority to
1916	1916	13 categories with projects on a waitlist. The redistributed
1917	1917	14 capacity shall be added to the annual capacity in the
1918	1918	15 subsequent delivery year, and the price for renewable
1919	1919	16 energy credits shall be the price for the new delivery
1920	1920	17 year. Redistributed capacity shall not be considered
1921	1921	18 redistributed when determining whether the goals in this
1922	1922	19 subsection (K) have been met.
1923	1923	20 Notwithstanding anything to the contrary, as the
1924	1924	21 Agency increases the capacity in item (vi) to 40% over
1925	1925	22 time, the Agency may reduce the capacity of items (i)
1926	1926	23 through (v) proportionate to the capacity of the
1927	1927	24 categories of projects in item (vi), to achieve a balance
1928	1928	25 of project types.
1929	1929	26 The Adjustable Block program shall be designed to
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934
1935	1935	HB3258 - 53 - LRB104 06526 AAS 16562 b
1936	1936
1937	1937
1938	1938	HB3258- 54 -LRB104 06526 AAS 16562 b HB3258 - 54 - LRB104 06526 AAS 16562 b
1939	1939	HB3258 - 54 - LRB104 06526 AAS 16562 b
1940	1940	1 ensure that renewable energy credits are procured from
1941	1941	2 projects in diverse locations and are not concentrated in
1942	1942	3 a few regional areas.
1943	1943	4 (L) Notwithstanding provisions for advancing capital
1944	1944	5 prior to project energization found in item (vi) of
1945	1945	6 subparagraph (K), the procurement of photovoltaic
1946	1946	7 renewable energy credits under items (i) through (vi) of
1947	1947	8 subparagraph (K) of this paragraph (1) shall otherwise be
1948	1948	9 subject to the following contract and payment terms:
1949	1949	10 (i) (Blank).
1950	1950	11 (ii) For those renewable energy credits that
1951	1951	12 qualify and are procured under item (i) of
1952	1952	13 subparagraph (K) of this paragraph (1), and any
1953	1953	14 similar category projects that are procured under item
1954	1954	15 (vi) of subparagraph (K) of this paragraph (1) that
1955	1955	16 qualify and are procured under item (vi), the contract
1956	1956	17 length shall be 15 years. The renewable energy credit
1957	1957	18 delivery contract value shall be paid in full, based
1958	1958	19 on the estimated generation during the first 15 years
1959	1959	20 of operation, by the contracting utilities at the time
1960	1960	21 that the facility producing the renewable energy
1961	1961	22 credits is interconnected at the distribution system
1962	1962	23 level of the utility and verified as energized and
1963	1963	24 compliant by the Program Administrator. The electric
1964	1964	25 utility shall receive and retire all renewable energy
1965	1965	26 credits generated by the project for the first 15
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970
1971	1971	HB3258 - 54 - LRB104 06526 AAS 16562 b
1972	1972
1973	1973
1974	1974	HB3258- 55 -LRB104 06526 AAS 16562 b HB3258 - 55 - LRB104 06526 AAS 16562 b
1975	1975	HB3258 - 55 - LRB104 06526 AAS 16562 b
1976	1976	1 years of operation. Renewable energy credits generated
1977	1977	2 by the project thereafter shall not be transferred
1978	1978	3 under the renewable energy credit delivery contract
1979	1979	4 with the counterparty electric utility.
1980	1980	5 (iii) For those renewable energy credits that
1981	1981	6 qualify and are procured under item (ii) and (v) of
1982	1982	7 subparagraph (K) of this paragraph (1) and any like
1983	1983	8 projects similar category that qualify and are
1984	1984	9 procured under item (vi), the contract length shall be
1985	1985	10 15 years. 15% of the renewable energy credit delivery
1986	1986	11 contract value, based on the estimated generation
1987	1987	12 during the first 15 years of operation, shall be paid
1988	1988	13 by the contracting utilities at the time that the
1989	1989	14 facility producing the renewable energy credits is
1990	1990	15 interconnected at the distribution system level of the
1991	1991	16 utility and verified as energized and compliant by the
1992	1992	17 Program Administrator. The remaining portion shall be
1993	1993	18 paid ratably over the subsequent 6-year period. The
1994	1994	19 electric utility shall receive and retire all
1995	1995	20 renewable energy credits generated by the project for
1996	1996	21 the first 15 years of operation. Renewable energy
1997	1997	22 credits generated by the project thereafter shall not
1998	1998	23 be transferred under the renewable energy credit
1999	1999	24 delivery contract with the counterparty electric
2000	2000	25 utility.
2001	2001	26 (iv) For those renewable energy credits that
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006
2007	2007	HB3258 - 55 - LRB104 06526 AAS 16562 b
2008	2008
2009	2009
2010	2010	HB3258- 56 -LRB104 06526 AAS 16562 b HB3258 - 56 - LRB104 06526 AAS 16562 b
2011	2011	HB3258 - 56 - LRB104 06526 AAS 16562 b
2012	2012	1 qualify and are procured under items (iii) and (iv) of
2013	2013	2 subparagraph (K) of this paragraph (1), and any like
2014	2014	3 projects that qualify and are procured under item
2015	2015	4 (vi), the renewable energy credit delivery contract
2016	2016	5 length shall be 20 years and shall be paid over the
2017	2017	6 delivery term, not to exceed during each delivery year
2018	2018	7 the contract price multiplied by the estimated annual
2019	2019	8 renewable energy credit generation amount. If
2020	2020	9 generation of renewable energy credits during a
2021	2021	10 delivery year exceeds the estimated annual generation
2022	2022	11 amount, the excess renewable energy credits shall be
2023	2023	12 carried forward to future delivery years and shall not
2024	2024	13 expire during the delivery term. If generation of
2025	2025	14 renewable energy credits during a delivery year,
2026	2026	15 including carried forward excess renewable energy
2027	2027	16 credits, if any, is less than the estimated annual
2028	2028	17 generation amount, payments during such delivery year
2029	2029	18 will not exceed the quantity generated plus the
2030	2030	19 quantity carried forward multiplied by the contract
2031	2031	20 price. The electric utility shall receive all
2032	2032	21 renewable energy credits generated by the project
2033	2033	22 during the first 20 years of operation and retire all
2034	2034	23 renewable energy credits paid for under this item (iv)
2035	2035	24 and return at the end of the delivery term all
2036	2036	25 renewable energy credits that were not paid for.
2037	2037	26 Renewable energy credits generated by the project
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042
2043	2043	HB3258 - 56 - LRB104 06526 AAS 16562 b
2044	2044
2045	2045
2046	2046	HB3258- 57 -LRB104 06526 AAS 16562 b HB3258 - 57 - LRB104 06526 AAS 16562 b
2047	2047	HB3258 - 57 - LRB104 06526 AAS 16562 b
2048	2048	1 thereafter shall not be transferred under the
2049	2049	2 renewable energy credit delivery contract with the
2050	2050	3 counterparty electric utility. Notwithstanding the
2051	2051	4 preceding, for those projects participating under item
2052	2052	5 (iii) of subparagraph (K), the contract price for a
2053	2053	6 delivery year shall be based on subscription levels as
2054	2054	7 measured on the higher of the first business day of the
2055	2055	8 delivery year or the first business day 6 months after
2056	2056	9 the first business day of the delivery year.
2057	2057	10 Subscription of 90% of nameplate capacity or greater
2058	2058	11 shall be deemed to be fully subscribed for the
2059	2059	12 purposes of this item (iv). For projects receiving a
2060	2060	13 20-year delivery contract, REC prices shall be
2061	2061	14 adjusted downward for consistency with the incentive
2062	2062	15 levels previously determined to be necessary to
2063	2063	16 support projects under 15-year delivery contracts,
2064	2064	17 taking into consideration any additional new
2065	2065	18 requirements placed on the projects, including, but
2066	2066	19 not limited to, labor standards.
2067	2067	20 (v) Each contract shall include provisions to
2068	2068	21 ensure the delivery of the estimated quantity of
2069	2069	22 renewable energy credits and ongoing collateral
2070	2070	23 requirements and other provisions deemed appropriate
2071	2071	24 by the Agency.
2072	2072	25 (vi) The utility shall be the counterparty to the
2073	2073	26 contracts executed under this subparagraph (L) that
2074	2074
2075	2075
2076	2076
2077	2077
2078	2078
2079	2079	HB3258 - 57 - LRB104 06526 AAS 16562 b
2080	2080
2081	2081
2082	2082	HB3258- 58 -LRB104 06526 AAS 16562 b HB3258 - 58 - LRB104 06526 AAS 16562 b
2083	2083	HB3258 - 58 - LRB104 06526 AAS 16562 b
2084	2084	1 are approved by the Commission under the process
2085	2085	2 described in Section 16-111.5 of the Public Utilities
2086	2086	3 Act. No contract shall be executed for an amount that
2087	2087	4 is less than one renewable energy credit per year.
2088	2088	5 (vii) If, at any time, approved applications for
2089	2089	6 the Adjustable Block program exceed funds collected by
2090	2090	7 the electric utility or would cause the Agency to
2091	2091	8 exceed the limitation described in subparagraph (E) of
2092	2092	9 this paragraph (1) on the amount of renewable energy
2093	2093	10 resources that may be procured, then the Agency may
2094	2094	11 consider future uncommitted funds to be reserved for
2095	2095	12 these contracts on a first-come, first-served basis.
2096	2096	13 (viii) Nothing in this Section shall require the
2097	2097	14 utility to advance any payment or pay any amounts that
2098	2098	15 exceed the actual amount of revenues anticipated to be
2099	2099	16 collected by the utility under paragraph (6) of this
2100	2100	17 subsection (c) and subsection (k) of Section 16-108 of
2101	2101	18 the Public Utilities Act inclusive of eligible funds
2102	2102	19 collected in prior years and alternative compliance
2103	2103	20 payments for use by the utility, and contracts
2104	2104	21 executed under this Section shall expressly
2105	2105	22 incorporate this limitation.
2106	2106	23 (ix) Notwithstanding other requirements of this
2107	2107	24 subparagraph (L), no modification shall be required to
2108	2108	25 Adjustable Block program contracts if they were
2109	2109	26 already executed prior to the establishment, approval,
2110	2110
2111	2111
2112	2112
2113	2113
2114	2114
2115	2115	HB3258 - 58 - LRB104 06526 AAS 16562 b
2116	2116
2117	2117
2118	2118	HB3258- 59 -LRB104 06526 AAS 16562 b HB3258 - 59 - LRB104 06526 AAS 16562 b
2119	2119	HB3258 - 59 - LRB104 06526 AAS 16562 b
2120	2120	1 and implementation of new contract forms as a result
2121	2121	2 of this amendatory Act of the 102nd General Assembly.
2122	2122	3 (x) Contracts may be assignable, but only to
2123	2123	4 entities first deemed by the Agency to have met
2124	2124	5 program terms and requirements applicable to direct
2125	2125	6 program participation. In developing contracts for the
2126	2126	7 delivery of renewable energy credits, the Agency shall
2127	2127	8 be permitted to establish fees applicable to each
2128	2128	9 contract assignment.
2129	2129	10 (M) The Agency shall be authorized to retain one or
2130	2130	11 more experts or expert consulting firms to develop,
2131	2131	12 administer, implement, operate, and evaluate the
2132	2132	13 Adjustable Block program described in subparagraph (K) of
2133	2133	14 this paragraph (1), and the Agency shall retain the
2134	2134	15 consultant or consultants in the same manner, to the
2135	2135	16 extent practicable, as the Agency retains others to
2136	2136	17 administer provisions of this Act, including, but not
2137	2137	18 limited to, the procurement administrator. The selection
2138	2138	19 of experts and expert consulting firms and the procurement
2139	2139	20 process described in this subparagraph (M) are exempt from
2140	2140	21 the requirements of Section 20-10 of the Illinois
2141	2141	22 Procurement Code, under Section 20-10 of that Code. The
2142	2142	23 Agency shall strive to minimize administrative expenses in
2143	2143	24 the implementation of the Adjustable Block program.
2144	2144	25 The Program Administrator may charge application fees
2145	2145	26 to participating firms to cover the cost of program
2146	2146
2147	2147
2148	2148
2149	2149
2150	2150
2151	2151	HB3258 - 59 - LRB104 06526 AAS 16562 b
2152	2152
2153	2153
2154	2154	HB3258- 60 -LRB104 06526 AAS 16562 b HB3258 - 60 - LRB104 06526 AAS 16562 b
2155	2155	HB3258 - 60 - LRB104 06526 AAS 16562 b
2156	2156	1 administration. Any application fee amounts shall
2157	2157	2 initially be determined through the long-term renewable
2158	2158	3 resources procurement plan, and modifications to any
2159	2159	4 application fee that deviate more than 25% from the
2160	2160	5 Commission's approved value must be approved by the
2161	2161	6 Commission as a long-term plan revision under Section
2162	2162	7 16-111.5 of the Public Utilities Act. The Agency shall
2163	2163	8 consider stakeholder feedback when making adjustments to
2164	2164	9 application fees and shall notify stakeholders in advance
2165	2165	10 of any planned changes.
2166	2166	11 In addition to covering the costs of program
2167	2167	12 administration, the Agency, in conjunction with its
2168	2168	13 Program Administrator, may also use the proceeds of such
2169	2169	14 fees charged to participating firms to support public
2170	2170	15 education and ongoing regional and national coordination
2171	2171	16 with nonprofit organizations, public bodies, and others
2172	2172	17 engaged in the implementation of renewable energy
2173	2173	18 incentive programs or similar initiatives. This work may
2174	2174	19 include developing papers and reports, hosting regional
2175	2175	20 and national conferences, and other work deemed necessary
2176	2176	21 by the Agency to position the State of Illinois as a
2177	2177	22 national leader in renewable energy incentive program
2178	2178	23 development and administration.
2179	2179	24 The Agency and its consultant or consultants shall
2180	2180	25 monitor block activity, share program activity with
2181	2181	26 stakeholders and conduct quarterly meetings to discuss
2182	2182
2183	2183
2184	2184
2185	2185
2186	2186
2187	2187	HB3258 - 60 - LRB104 06526 AAS 16562 b
2188	2188
2189	2189
2190	2190	HB3258- 61 -LRB104 06526 AAS 16562 b HB3258 - 61 - LRB104 06526 AAS 16562 b
2191	2191	HB3258 - 61 - LRB104 06526 AAS 16562 b
2192	2192	1 program activity and market conditions. If necessary, the
2193	2193	2 Agency may make prospective administrative adjustments to
2194	2194	3 the Adjustable Block program design, such as making
2195	2195	4 adjustments to purchase prices as necessary to achieve the
2196	2196	5 goals of this subsection (c). Program modifications to any
2197	2197	6 block price that do not deviate from the Commission's
2198	2198	7 approved value by more than 10% shall take effect
2199	2199	8 immediately and are not subject to Commission review and
2200	2200	9 approval. Program modifications to any block price that
2201	2201	10 deviate more than 10% from the Commission's approved value
2202	2202	11 must be approved by the Commission as a long-term plan
2203	2203	12 amendment under Section 16-111.5 of the Public Utilities
2204	2204	13 Act. The Agency shall consider stakeholder feedback when
2205	2205	14 making adjustments to the Adjustable Block design and
2206	2206	15 shall notify stakeholders in advance of any planned
2207	2207	16 changes.
2208	2208	17 The Agency and its program administrators for both the
2209	2209	18 Adjustable Block program and the Illinois Solar for All
2210	2210	19 Program, consistent with the requirements of this
2211	2211	20 subsection (c) and subsection (b) of Section 1-56 of this
2212	2212	21 Act, shall propose the Adjustable Block program terms,
2213	2213	22 conditions, and requirements, including the prices to be
2214	2214	23 paid for renewable energy credits, where applicable, and
2215	2215	24 requirements applicable to participating entities and
2216	2216	25 project applications, through the development, review, and
2217	2217	26 approval of the Agency's long-term renewable resources
2218	2218
2219	2219
2220	2220
2221	2221
2222	2222
2223	2223	HB3258 - 61 - LRB104 06526 AAS 16562 b
2224	2224
2225	2225
2226	2226	HB3258- 62 -LRB104 06526 AAS 16562 b HB3258 - 62 - LRB104 06526 AAS 16562 b
2227	2227	HB3258 - 62 - LRB104 06526 AAS 16562 b
2228	2228	1 procurement plan described in this subsection (c) and
2229	2229	2 paragraph (5) of subsection (b) of Section 16-111.5 of the
2230	2230	3 Public Utilities Act. Terms, conditions, and requirements
2231	2231	4 for program participation shall include the following:
2232	2232	5 (i) The Agency shall establish a registration
2233	2233	6 process for entities seeking to qualify for
2234	2234	7 program-administered incentive funding and establish
2235	2235	8 baseline qualifications for vendor approval. The
2236	2236	9 Agency must maintain a list of approved entities on
2237	2237	10 each program's website, and may revoke a vendor's
2238	2238	11 ability to receive program-administered incentive
2239	2239	12 funding status upon a determination that the vendor
2240	2240	13 failed to comply with contract terms, the law, or
2241	2241	14 other program requirements.
2242	2242	15 (ii) The Agency shall establish program
2243	2243	16 requirements and minimum contract terms to ensure
2244	2244	17 projects are properly installed and produce their
2245	2245	18 expected amounts of energy. Program requirements may
2246	2246	19 include on-site inspections and photo documentation of
2247	2247	20 projects under construction. The Agency may require
2248	2248	21 repairs, alterations, or additions to remedy any
2249	2249	22 material deficiencies discovered. Vendors who have a
2250	2250	23 disproportionately high number of deficient systems
2251	2251	24 may lose their eligibility to continue to receive
2252	2252	25 State-administered incentive funding through Agency
2253	2253	26 programs and procurements.
2254	2254
2255	2255
2256	2256
2257	2257
2258	2258
2259	2259	HB3258 - 62 - LRB104 06526 AAS 16562 b
2260	2260
2261	2261
2262	2262	HB3258- 63 -LRB104 06526 AAS 16562 b HB3258 - 63 - LRB104 06526 AAS 16562 b
2263	2263	HB3258 - 63 - LRB104 06526 AAS 16562 b
2264	2264	1 (iii) To discourage deceptive marketing or other
2265	2265	2 bad faith business practices, the Agency may require
2266	2266	3 direct program participants, including agents
2267	2267	4 operating on their behalf, to provide standardized
2268	2268	5 disclosures to a customer prior to that customer's
2269	2269	6 execution of a contract for the development of a
2270	2270	7 distributed generation system or a subscription to a
2271	2271	8 community solar project.
2272	2272	9 (iv) The Agency shall establish one or multiple
2273	2273	10 Consumer Complaints Centers to accept complaints
2274	2274	11 regarding businesses that participate in, or otherwise
2275	2275	12 benefit from, State-administered incentive funding
2276	2276	13 through Agency-administered programs. The Agency shall
2277	2277	14 maintain a public database of complaints with any
2278	2278	15 confidential or particularly sensitive information
2279	2279	16 redacted from public entries.
2280	2280	17 (v) Through a filing in the proceeding for the
2281	2281	18 approval of its long-term renewable energy resources
2282	2282	19 procurement plan, the Agency shall provide an annual
2283	2283	20 written report to the Illinois Commerce Commission
2284	2284	21 documenting the frequency and nature of complaints and
2285	2285	22 any enforcement actions taken in response to those
2286	2286	23 complaints.
2287	2287	24 (vi) The Agency shall schedule regular meetings
2288	2288	25 with representatives of the Office of the Attorney
2289	2289	26 General, the Illinois Commerce Commission, consumer
2290	2290
2291	2291
2292	2292
2293	2293
2294	2294
2295	2295	HB3258 - 63 - LRB104 06526 AAS 16562 b
2296	2296
2297	2297
2298	2298	HB3258- 64 -LRB104 06526 AAS 16562 b HB3258 - 64 - LRB104 06526 AAS 16562 b
2299	2299	HB3258 - 64 - LRB104 06526 AAS 16562 b
2300	2300	1 protection groups, and other interested stakeholders
2301	2301	2 to share relevant information about consumer
2302	2302	3 protection, project compliance, and complaints
2303	2303	4 received.
2304	2304	5 (vii) To the extent that complaints received
2305	2305	6 implicate the jurisdiction of the Office of the
2306	2306	7 Attorney General, the Illinois Commerce Commission, or
2307	2307	8 local, State, or federal law enforcement, the Agency
2308	2308	9 shall also refer complaints to those entities as
2309	2309	10 appropriate.
2310	2310	11 (N) The Agency shall establish the terms, conditions,
2311	2311	12 and program requirements for photovoltaic community
2312	2312	13 renewable generation projects with a goal to expand access
2313	2313	14 to a broader group of energy consumers, to ensure robust
2314	2314	15 participation opportunities for residential and small
2315	2315	16 commercial customers and those who cannot install
2316	2316	17 renewable energy on their own properties. Subject to
2317	2317	18 reasonable limitations, any plan approved by the
2318	2318	19 Commission shall allow subscriptions to community
2319	2319	20 renewable generation projects to be portable and
2320	2320	21 transferable. For purposes of this subparagraph (N),
2321	2321	22 "portable" means that subscriptions may be retained by the
2322	2322	23 subscriber even if the subscriber relocates or changes its
2323	2323	24 address within the same utility service territory; and
2324	2324	25 "transferable" means that a subscriber may assign or sell
2325	2325	26 subscriptions to another person within the same utility
2326	2326
2327	2327
2328	2328
2329	2329
2330	2330
2331	2331	HB3258 - 64 - LRB104 06526 AAS 16562 b
2332	2332
2333	2333
2334	2334	HB3258- 65 -LRB104 06526 AAS 16562 b HB3258 - 65 - LRB104 06526 AAS 16562 b
2335	2335	HB3258 - 65 - LRB104 06526 AAS 16562 b
2336	2336	1 service territory.
2337	2337	2 Through the development of its long-term renewable
2338	2338	3 resources procurement plan, the Agency may consider
2339	2339	4 whether community renewable generation projects utilizing
2340	2340	5 technologies other than photovoltaics should be supported
2341	2341	6 through State-administered incentive funding, and may
2342	2342	7 issue requests for information to gauge market demand.
2343	2343	8 Electric utilities shall provide a monetary credit to
2344	2344	9 a subscriber's subsequent bill for service for the
2345	2345	10 proportional output of a community renewable generation
2346	2346	11 project attributable to that subscriber as specified in
2347	2347	12 Section 16-107.5 of the Public Utilities Act.
2348	2348	13 The Agency shall purchase renewable energy credits
2349	2349	14 from subscribed shares of photovoltaic community renewable
2350	2350	15 generation projects through the Adjustable Block program
2351	2351	16 described in subparagraph (K) of this paragraph (1) or
2352	2352	17 through the Illinois Solar for All Program described in
2353	2353	18 Section 1-56 of this Act. The electric utility shall
2354	2354	19 purchase any unsubscribed energy from community renewable
2355	2355	20 generation projects that are Qualifying Facilities ("QF")
2356	2356	21 under the electric utility's tariff for purchasing the
2357	2357	22 output from QFs under Public Utilities Regulatory Policies
2358	2358	23 Act of 1978.
2359	2359	24 The owners of and any subscribers to a community
2360	2360	25 renewable generation project shall not be considered
2361	2361	26 public utilities or alternative retail electricity
2362	2362
2363	2363
2364	2364
2365	2365
2366	2366
2367	2367	HB3258 - 65 - LRB104 06526 AAS 16562 b
2368	2368
2369	2369
2370	2370	HB3258- 66 -LRB104 06526 AAS 16562 b HB3258 - 66 - LRB104 06526 AAS 16562 b
2371	2371	HB3258 - 66 - LRB104 06526 AAS 16562 b
2372	2372	1 suppliers under the Public Utilities Act solely as a
2373	2373	2 result of their interest in or subscription to a community
2374	2374	3 renewable generation project and shall not be required to
2375	2375	4 become an alternative retail electric supplier by
2376	2376	5 participating in a community renewable generation project
2377	2377	6 with a public utility.
2378	2378	7 (O) For the delivery year beginning June 1, 2018, the
2379	2379	8 long-term renewable resources procurement plan required by
2380	2380	9 this subsection (c) shall provide for the Agency to
2381	2381	10 procure contracts to continue offering the Illinois Solar
2382	2382	11 for All Program described in subsection (b) of Section
2383	2383	12 1-56 of this Act, and the contracts approved by the
2384	2384	13 Commission shall be executed by the utilities that are
2385	2385	14 subject to this subsection (c). The long-term renewable
2386	2386	15 resources procurement plan shall allocate up to
2387	2387	16 $50,000,000 per delivery year to fund the programs, and
2388	2388	17 the plan shall determine the amount of funding to be
2389	2389	18 apportioned to the programs identified in subsection (b)
2390	2390	19 of Section 1-56 of this Act; provided that for the
2391	2391	20 delivery years beginning June 1, 2021, June 1, 2022, and
2392	2392	21 June 1, 2023, the long-term renewable resources
2393	2393	22 procurement plan may average the annual budgets over a
2394	2394	23 3-year period to account for program ramp-up. For the
2395	2395	24 delivery years beginning June 1, 2021, June 1, 2024, June
2396	2396	25 1, 2027, and June 1, 2030 and additional $10,000,000 shall
2397	2397	26 be provided to the Department of Commerce and Economic
2398	2398
2399	2399
2400	2400
2401	2401
2402	2402
2403	2403	HB3258 - 66 - LRB104 06526 AAS 16562 b
2404	2404
2405	2405
2406	2406	HB3258- 67 -LRB104 06526 AAS 16562 b HB3258 - 67 - LRB104 06526 AAS 16562 b
2407	2407	HB3258 - 67 - LRB104 06526 AAS 16562 b
2408	2408	1 Opportunity to implement the workforce development
2409	2409	2 programs and reporting as outlined in Section 16-108.12 of
2410	2410	3 the Public Utilities Act. In making the determinations
2411	2411	4 required under this subparagraph (O), the Commission shall
2412	2412	5 consider the experience and performance under the programs
2413	2413	6 and any evaluation reports. The Commission shall also
2414	2414	7 provide for an independent evaluation of those programs on
2415	2415	8 a periodic basis that are funded under this subparagraph
2416	2416	9 (O).
2417	2417	10 (P) (Blank). All programs and procurements under this
2418	2418	11 subsection (c) shall be designed to encourage
2419	2419	12 participating projects to use a diverse and equitable
2420	2420	13 workforce and a diverse set of contractors, including
2421	2421	14 minority-owned businesses, disadvantaged businesses,
2422	2422	15 trade unions, graduates of any workforce training programs
2423	2423	16 administered under this Act, and small businesses.
2424	2424	17 The Agency shall develop a method to optimize
2425	2425	18 procurement of renewable energy credits from proposed
2426	2426	19 utility-scale projects that are located in communities
2427	2427	20 eligible to receive Energy Transition Community Grants
2428	2428	21 pursuant to Section 10-20 of the Energy Community
2429	2429	22 Reinvestment Act. If this requirement conflicts with other
2430	2430	23 provisions of law or the Agency determines that full
2431	2431	24 compliance with the requirements of this subparagraph (P)
2432	2432	25 would be unreasonably costly or administratively
2433	2433	26 impractical, the Agency is to propose alternative
2434	2434
2435	2435
2436	2436
2437	2437
2438	2438
2439	2439	HB3258 - 67 - LRB104 06526 AAS 16562 b
2440	2440
2441	2441
2442	2442	HB3258- 68 -LRB104 06526 AAS 16562 b HB3258 - 68 - LRB104 06526 AAS 16562 b
2443	2443	HB3258 - 68 - LRB104 06526 AAS 16562 b
2444	2444	1 approaches to achieve development of renewable energy
2445	2445	2 resources in communities eligible to receive Energy
2446	2446	3 Transition Community Grants pursuant to Section 10-20 of
2447	2447	4 the Energy Community Reinvestment Act or seek an exemption
2448	2448	5 from this requirement from the Commission.
2449	2449	6 (Q) Each facility listed in subitems (i) through (ix)
2450	2450	7 of item (1) of this subparagraph (Q) for which a renewable
2451	2451	8 energy credit delivery contract is signed after the
2452	2452	9 effective date of this amendatory Act of the 102nd General
2453	2453	10 Assembly is subject to the following requirements through
2454	2454	11 the Agency's long-term renewable resources procurement
2455	2455	12 plan:
2456	2456	13 (1) Each facility shall be subject to the
2457	2457	14 prevailing wage requirements included in the
2458	2458	15 Prevailing Wage Act. The Agency shall require
2459	2459	16 verification that all construction performed on the
2460	2460	17 facility by the renewable energy credit delivery
2461	2461	18 contract holder, its contractors, or its
2462	2462	19 subcontractors relating to construction of the
2463	2463	20 facility is performed by construction employees
2464	2464	21 receiving an amount for that work equal to or greater
2465	2465	22 than the general prevailing rate, as that term is
2466	2466	23 defined in Section 3 of the Prevailing Wage Act. For
2467	2467	24 purposes of this item (1), "house of worship" means
2468	2468	25 property that is both (1) used exclusively by a
2469	2469	26 religious society or body of persons as a place for
2470	2470
2471	2471
2472	2472
2473	2473
2474	2474
2475	2475	HB3258 - 68 - LRB104 06526 AAS 16562 b
2476	2476
2477	2477
2478	2478	HB3258- 69 -LRB104 06526 AAS 16562 b HB3258 - 69 - LRB104 06526 AAS 16562 b
2479	2479	HB3258 - 69 - LRB104 06526 AAS 16562 b
2480	2480	1 religious exercise or religious worship and (2)
2481	2481	2 recognized as exempt from taxation pursuant to Section
2482	2482	3 15-40 of the Property Tax Code. This item (1) shall
2483	2483	4 apply to any the following:
2484	2484	5 (i) all new utility-scale wind projects;
2485	2485	6 (ii) all new utility-scale photovoltaic
2486	2486	7 projects;
2487	2487	8 (iii) all new brownfield photovoltaic
2488	2488	9 projects;
2489	2489	10 (iv) all new photovoltaic community renewable
2490	2490	11 energy facilities that qualify for item (iii) of
2491	2491	12 subparagraph (K) of this paragraph (1);
2492	2492	13 (v) all new community driven community
2493	2493	14 photovoltaic projects that qualify for item (v) of
2494	2494	15 subparagraph (K) of this paragraph (1);
2495	2495	16 (vi) all new photovoltaic projects on public
2496	2496	17 school land that qualify for item (iv) of
2497	2497	18 subparagraph (K) of this paragraph (1);
2498	2498	19 (vii) all new photovoltaic distributed
2499	2499	20 renewable energy generation devices that (1)
2500	2500	21 qualify for item (i) of subparagraph (K) of this
2501	2501	22 paragraph (1); (2) are not projects that serve
2502	2502	23 single-family or multi-family residential
2503	2503	24 buildings; and (3) are not houses of worship where
2504	2504	25 the aggregate capacity including collocated
2505	2505	26 projects would not exceed 100 kilowatts;
2506	2506
2507	2507
2508	2508
2509	2509
2510	2510
2511	2511	HB3258 - 69 - LRB104 06526 AAS 16562 b
2512	2512
2513	2513
2514	2514	HB3258- 70 -LRB104 06526 AAS 16562 b HB3258 - 70 - LRB104 06526 AAS 16562 b
2515	2515	HB3258 - 70 - LRB104 06526 AAS 16562 b
2516	2516	1 (viii) all new photovoltaic distributed
2517	2517	2 renewable energy generation devices that (1)
2518	2518	3 qualify for item (ii) of subparagraph (K) of this
2519	2519	4 paragraph (1); (2) are not projects that serve
2520	2520	5 single-family or multi-family residential
2521	2521	6 buildings; and (3) are not houses of worship where
2522	2522	7 the aggregate capacity including collocated
2523	2523	8 projects would not exceed 100 kilowatts;
2524	2524	9 (ix) all new, modernized, or retooled
2525	2525	10 hydropower facilities.
2526	2526	11 (2) Renewable energy credits procured from new
2527	2527	12 utility-scale wind projects, new utility-scale solar
2528	2528	13 projects, and new brownfield solar projects pursuant
2529	2529	14 to Agency procurement events occurring after the
2530	2530	15 effective date of this amendatory Act of the 102nd
2531	2531	16 General Assembly must be from facilities built by
2532	2532	17 general contractors that must enter into a project
2533	2533	18 labor agreement, as defined by this Act, prior to
2534	2534	19 construction. The project labor agreement shall be
2535	2535	20 filed with the Director in accordance with procedures
2536	2536	21 established by the Agency through its long-term
2537	2537	22 renewable resources procurement plan. Any information
2538	2538	23 submitted to the Agency in this item (2) shall be
2539	2539	24 considered commercially sensitive information. At a
2540	2540	25 minimum, the project labor agreement must provide the
2541	2541	26 names, addresses, and occupations of the owner of the
2542	2542
2543	2543
2544	2544
2545	2545
2546	2546
2547	2547	HB3258 - 70 - LRB104 06526 AAS 16562 b
2548	2548
2549	2549
2550	2550	HB3258- 71 -LRB104 06526 AAS 16562 b HB3258 - 71 - LRB104 06526 AAS 16562 b
2551	2551	HB3258 - 71 - LRB104 06526 AAS 16562 b
2552	2552	1 plant and the individuals representing the labor
2553	2553	2 organization employees participating in the project
2554	2554	3 labor agreement consistent with the Project Labor
2555	2555	4 Agreements Act. The agreement must also specify the
2556	2556	5 terms and conditions as defined by this Act.
2557	2557	6 (3) It is the intent of this Section to ensure that
2558	2558	7 economic development occurs across Illinois
2559	2559	8 communities, that emerging businesses may grow, and
2560	2560	9 that there is improved access to the clean energy
2561	2561	10 economy by persons who have greater economic burdens
2562	2562	11 to success. The Agency shall take into consideration
2563	2563	12 the unique cost of compliance of this subparagraph (Q)
2564	2564	13 that might be borne by equity eligible contractors,
2565	2565	14 shall include such costs when determining the price of
2566	2566	15 renewable energy credits in the Adjustable Block
2567	2567	16 program, and shall take such costs into consideration
2568	2568	17 in a nondiscriminatory manner when comparing bids for
2569	2569	18 competitive procurements. The Agency shall consider
2570	2570	19 costs associated with compliance whether in the
2571	2571	20 development, financing, or construction of projects.
2572	2572	21 The Agency shall periodically review the assumptions
2573	2573	22 in these costs and may adjust prices, in compliance
2574	2574	23 with subparagraph (M) of this paragraph (1).
2575	2575	24 (R) In its long-term renewable resources procurement
2576	2576	25 plan, the Agency shall establish a self-direct renewable
2577	2577	26 portfolio standard compliance program for eligible
2578	2578
2579	2579
2580	2580
2581	2581
2582	2582
2583	2583	HB3258 - 71 - LRB104 06526 AAS 16562 b
2584	2584
2585	2585
2586	2586	HB3258- 72 -LRB104 06526 AAS 16562 b HB3258 - 72 - LRB104 06526 AAS 16562 b
2587	2587	HB3258 - 72 - LRB104 06526 AAS 16562 b
2588	2588	1 self-direct customers that purchase renewable energy
2589	2589	2 credits from utility-scale wind and solar projects through
2590	2590	3 long-term agreements for purchase of renewable energy
2591	2591	4 credits as described in this Section. Such long-term
2592	2592	5 agreements may include the purchase of energy or other
2593	2593	6 products on a physical or financial basis and may involve
2594	2594	7 an alternative retail electric supplier as defined in
2595	2595	8 Section 16-102 of the Public Utilities Act. This program
2596	2596	9 shall take effect in the delivery year commencing June 1,
2597	2597	10 2023.
2598	2598	11 (1) For the purposes of this subparagraph:
2599	2599	12 "Eligible self-direct customer" means any retail
2600	2600	13 customers of an electric utility that serves 3,000,000
2601	2601	14 or more retail customers in the State and whose total
2602	2602	15 highest 30-minute demand was more than 10,000
2603	2603	16 kilowatts, or any retail customers of an electric
2604	2604	17 utility that serves less than 3,000,000 retail
2605	2605	18 customers but more than 500,000 retail customers in
2606	2606	19 the State and whose total highest 15-minute demand was
2607	2607	20 more than 10,000 kilowatts.
2608	2608	21 "Retail customer" has the meaning set forth in
2609	2609	22 Section 16-102 of the Public Utilities Act and
2610	2610	23 multiple retail customer accounts under the same
2611	2611	24 corporate parent may aggregate their account demands
2612	2612	25 to meet the 10,000 kilowatt threshold. The criteria
2613	2613	26 for determining whether this subparagraph is
2614	2614
2615	2615
2616	2616
2617	2617
2618	2618
2619	2619	HB3258 - 72 - LRB104 06526 AAS 16562 b
2620	2620
2621	2621
2622	2622	HB3258- 73 -LRB104 06526 AAS 16562 b HB3258 - 73 - LRB104 06526 AAS 16562 b
2623	2623	HB3258 - 73 - LRB104 06526 AAS 16562 b
2624	2624	1 applicable to a retail customer shall be based on the
2625	2625	2 12 consecutive billing periods prior to the start of
2626	2626	3 the year in which the application is filed.
2627	2627	4 (2) For renewable energy credits to count toward
2628	2628	5 the self-direct renewable portfolio standard
2629	2629	6 compliance program, they must:
2630	2630	7 (i) qualify as renewable energy credits as
2631	2631	8 defined in Section 1-10 of this Act;
2632	2632	9 (ii) be sourced from one or more renewable
2633	2633	10 energy generating facilities that comply with the
2634	2634	11 geographic requirements as set forth in
2635	2635	12 subparagraph (I) of paragraph (1) of subsection
2636	2636	13 (c) as interpreted through the Agency's long-term
2637	2637	14 renewable resources procurement plan, or, where
2638	2638	15 applicable, the geographic requirements that
2639	2639	16 governed utility-scale renewable energy credits at
2640	2640	17 the time the eligible self-direct customer entered
2641	2641	18 into the applicable renewable energy credit
2642	2642	19 purchase agreement;
2643	2643	20 (iii) be procured through long-term contracts
2644	2644	21 with term lengths of at least 10 years either
2645	2645	22 directly with the renewable energy generating
2646	2646	23 facility or through a bundled power purchase
2647	2647	24 agreement, a virtual power purchase agreement, an
2648	2648	25 agreement between the renewable generating
2649	2649	26 facility, an alternative retail electric supplier,
2650	2650
2651	2651
2652	2652
2653	2653
2654	2654
2655	2655	HB3258 - 73 - LRB104 06526 AAS 16562 b
2656	2656
2657	2657
2658	2658	HB3258- 74 -LRB104 06526 AAS 16562 b HB3258 - 74 - LRB104 06526 AAS 16562 b
2659	2659	HB3258 - 74 - LRB104 06526 AAS 16562 b
2660	2660	1 and the customer, or such other structure as is
2661	2661	2 permissible under this subparagraph (R);
2662	2662	3 (iv) be equivalent in volume to at least 40%
2663	2663	4 of the eligible self-direct customer's usage,
2664	2664	5 determined annually by the eligible self-direct
2665	2665	6 customer's usage during the previous delivery
2666	2666	7 year, measured to the nearest megawatt-hour;
2667	2667	8 (v) be retired by or on behalf of the large
2668	2668	9 energy customer;
2669	2669	10 (vi) be sourced from new utility-scale wind
2670	2670	11 projects or new utility-scale solar projects; and
2671	2671	12 (vii) if the contracts for renewable energy
2672	2672	13 credits are entered into after the effective date
2673	2673	14 of this amendatory Act of the 102nd General
2674	2674	15 Assembly, the new utility-scale wind projects or
2675	2675	16 new utility-scale solar projects must comply with
2676	2676	17 the requirements established in subparagraph
2677	2677	18 subparagraphs (P) and (Q) of paragraph (1) of this
2678	2678	19 subsection (c) and subsection (c-10).
2679	2679	20 (3) The self-direct renewable portfolio standard
2680	2680	21 compliance program shall be designed to allow eligible
2681	2681	22 self-direct customers to procure new renewable energy
2682	2682	23 credits from new utility-scale wind projects or new
2683	2683	24 utility-scale photovoltaic projects. The Agency shall
2684	2684	25 annually determine the amount of utility-scale
2685	2685	26 renewable energy credits it will include each year
2686	2686
2687	2687
2688	2688
2689	2689
2690	2690
2691	2691	HB3258 - 74 - LRB104 06526 AAS 16562 b
2692	2692
2693	2693
2694	2694	HB3258- 75 -LRB104 06526 AAS 16562 b HB3258 - 75 - LRB104 06526 AAS 16562 b
2695	2695	HB3258 - 75 - LRB104 06526 AAS 16562 b
2696	2696	1 from the self-direct renewable portfolio standard
2697	2697	2 compliance program, subject to receiving qualifying
2698	2698	3 applications. In making this determination, the Agency
2699	2699	4 shall evaluate publicly available analyses and studies
2700	2700	5 of the potential market size for utility-scale
2701	2701	6 renewable energy long-term purchase agreements by
2702	2702	7 commercial and industrial energy customers and make
2703	2703	8 that report publicly available. If demand for
2704	2704	9 participation in the self-direct renewable portfolio
2705	2705	10 standard compliance program exceeds availability, the
2706	2706	11 Agency shall ensure participation is evenly split
2707	2707	12 between commercial and industrial users to the extent
2708	2708	13 there is sufficient demand from both customer classes.
2709	2709	14 Each renewable energy credit procured pursuant to this
2710	2710	15 subparagraph (R) by a self-direct customer shall
2711	2711	16 reduce the total volume of renewable energy credits
2712	2712	17 the Agency is otherwise required to procure from new
2713	2713	18 utility-scale projects pursuant to subparagraph (C) of
2714	2714	19 paragraph (1) of this subsection (c) on behalf of
2715	2715	20 contracting utilities where the eligible self-direct
2716	2716	21 customer is located. The self-direct customer shall
2717	2717	22 file an annual compliance report with the Agency
2718	2718	23 pursuant to terms established by the Agency through
2719	2719	24 its long-term renewable resources procurement plan to
2720	2720	25 be eligible for participation in this program.
2721	2721	26 Customers must provide the Agency with their most
2722	2722
2723	2723
2724	2724
2725	2725
2726	2726
2727	2727	HB3258 - 75 - LRB104 06526 AAS 16562 b
2728	2728
2729	2729
2730	2730	HB3258- 76 -LRB104 06526 AAS 16562 b HB3258 - 76 - LRB104 06526 AAS 16562 b
2731	2731	HB3258 - 76 - LRB104 06526 AAS 16562 b
2732	2732	1 recent electricity billing statements or other
2733	2733	2 information deemed necessary by the Agency to
2734	2734	3 demonstrate they are an eligible self-direct customer.
2735	2735	4 (4) The Commission shall approve a reduction in
2736	2736	5 the volumetric charges collected pursuant to Section
2737	2737	6 16-108 of the Public Utilities Act for approved
2738	2738	7 eligible self-direct customers equivalent to the
2739	2739	8 anticipated cost of renewable energy credit deliveries
2740	2740	9 under contracts for new utility-scale wind and new
2741	2741	10 utility-scale solar entered for each delivery year
2742	2742	11 after the large energy customer begins retiring
2743	2743	12 eligible new utility scale renewable energy credits
2744	2744	13 for self-compliance. The self-direct credit amount
2745	2745	14 shall be determined annually and is equal to the
2746	2746	15 estimated portion of the cost authorized by
2747	2747	16 subparagraph (E) of paragraph (1) of this subsection
2748	2748	17 (c) that supported the annual procurement of
2749	2749	18 utility-scale renewable energy credits in the prior
2750	2750	19 delivery year using a methodology described in the
2751	2751	20 long-term renewable resources procurement plan,
2752	2752	21 expressed on a per kilowatthour basis, and does not
2753	2753	22 include (i) costs associated with any contracts
2754	2754	23 entered into before the delivery year in which the
2755	2755	24 customer files the initial compliance report to be
2756	2756	25 eligible for participation in the self-direct program,
2757	2757	26 and (ii) costs associated with procuring renewable
2758	2758
2759	2759
2760	2760
2761	2761
2762	2762
2763	2763	HB3258 - 76 - LRB104 06526 AAS 16562 b
2764	2764
2765	2765
2766	2766	HB3258- 77 -LRB104 06526 AAS 16562 b HB3258 - 77 - LRB104 06526 AAS 16562 b
2767	2767	HB3258 - 77 - LRB104 06526 AAS 16562 b
2768	2768	1 energy credits through existing and future contracts
2769	2769	2 through the Adjustable Block Program, subsection (c-5)
2770	2770	3 of this Section 1-75, and the Solar for All Program.
2771	2771	4 The Agency shall assist the Commission in determining
2772	2772	5 the current and future costs. The Agency must
2773	2773	6 determine the self-direct credit amount for new and
2774	2774	7 existing eligible self-direct customers and submit
2775	2775	8 this to the Commission in an annual compliance filing.
2776	2776	9 The Commission must approve the self-direct credit
2777	2777	10 amount by June 1, 2023 and June 1 of each delivery year
2778	2778	11 thereafter.
2779	2779	12 (5) Customers described in this subparagraph (R)
2780	2780	13 shall apply, on a form developed by the Agency, to the
2781	2781	14 Agency to be designated as a self-direct eligible
2782	2782	15 customer. Once the Agency determines that a
2783	2783	16 self-direct customer is eligible for participation in
2784	2784	17 the program, the self-direct customer will remain
2785	2785	18 eligible until the end of the term of the contract.
2786	2786	19 Thereafter, application may be made not less than 12
2787	2787	20 months before the filing date of the long-term
2788	2788	21 renewable resources procurement plan described in this
2789	2789	22 Act. At a minimum, such application shall contain the
2790	2790	23 following:
2791	2791	24 (i) the customer's certification that, at the
2792	2792	25 time of the customer's application, the customer
2793	2793	26 qualifies to be a self-direct eligible customer,
2794	2794
2795	2795
2796	2796
2797	2797
2798	2798
2799	2799	HB3258 - 77 - LRB104 06526 AAS 16562 b
2800	2800
2801	2801
2802	2802	HB3258- 78 -LRB104 06526 AAS 16562 b HB3258 - 78 - LRB104 06526 AAS 16562 b
2803	2803	HB3258 - 78 - LRB104 06526 AAS 16562 b
2804	2804	1 including documents demonstrating that
2805	2805	2 qualification;
2806	2806	3 (ii) the customer's certification that the
2807	2807	4 customer has entered into or will enter into by
2808	2808	5 the beginning of the applicable procurement year,
2809	2809	6 one or more bilateral contracts for new wind
2810	2810	7 projects or new photovoltaic projects, including
2811	2811	8 supporting documentation;
2812	2812	9 (iii) certification that the contract or
2813	2813	10 contracts for new renewable energy resources are
2814	2814	11 long-term contracts with term lengths of at least
2815	2815	12 10 years, including supporting documentation;
2816	2816	13 (iv) certification of the quantities of
2817	2817	14 renewable energy credits that the customer will
2818	2818	15 purchase each year under such contract or
2819	2819	16 contracts, including supporting documentation;
2820	2820	17 (v) proof that the contract is sufficient to
2821	2821	18 produce renewable energy credits to be equivalent
2822	2822	19 in volume to at least 40% of the large energy
2823	2823	20 customer's usage from the previous delivery year,
2824	2824	21 measured to the nearest megawatt-hour; and
2825	2825	22 (vi) certification that the customer intends
2826	2826	23 to maintain the contract for the duration of the
2827	2827	24 length of the contract.
2828	2828	25 (6) If a customer receives the self-direct credit
2829	2829	26 but fails to properly procure and retire renewable
2830	2830
2831	2831
2832	2832
2833	2833
2834	2834
2835	2835	HB3258 - 78 - LRB104 06526 AAS 16562 b
2836	2836
2837	2837
2838	2838	HB3258- 79 -LRB104 06526 AAS 16562 b HB3258 - 79 - LRB104 06526 AAS 16562 b
2839	2839	HB3258 - 79 - LRB104 06526 AAS 16562 b
2840	2840	1 energy credits as required under this subparagraph
2841	2841	2 (R), the Commission, on petition from the Agency and
2842	2842	3 after notice and hearing, may direct such customer's
2843	2843	4 utility to recover the cost of the wrongfully received
2844	2844	5 self-direct credits plus interest through an adder to
2845	2845	6 charges assessed pursuant to Section 16-108 of the
2846	2846	7 Public Utilities Act. Self-direct customers who
2847	2847	8 knowingly fail to properly procure and retire
2848	2848	9 renewable energy credits and do not notify the Agency
2849	2849	10 are ineligible for continued participation in the
2850	2850	11 self-direct renewable portfolio standard compliance
2851	2851	12 program.
2852	2852	13 (2) (Blank).
2853	2853	14 (3) (Blank).
2854	2854	15 (4) The electric utility shall retire all renewable
2855	2855	16 energy credits used to comply with the standard.
2856	2856	17 (5) Beginning with the 2010 delivery year and ending
2857	2857	18 June 1, 2017, an electric utility subject to this
2858	2858	19 subsection (c) shall apply the lesser of the maximum
2859	2859	20 alternative compliance payment rate or the most recent
2860	2860	21 estimated alternative compliance payment rate for its
2861	2861	22 service territory for the corresponding compliance period,
2862	2862	23 established pursuant to subsection (d) of Section 16-115D
2863	2863	24 of the Public Utilities Act to its retail customers that
2864	2864	25 take service pursuant to the electric utility's hourly
2865	2865	26 pricing tariff or tariffs. The electric utility shall
2866	2866
2867	2867
2868	2868
2869	2869
2870	2870
2871	2871	HB3258 - 79 - LRB104 06526 AAS 16562 b
2872	2872
2873	2873
2874	2874	HB3258- 80 -LRB104 06526 AAS 16562 b HB3258 - 80 - LRB104 06526 AAS 16562 b
2875	2875	HB3258 - 80 - LRB104 06526 AAS 16562 b
2876	2876	1 retain all amounts collected as a result of the
2877	2877	2 application of the alternative compliance payment rate or
2878	2878	3 rates to such customers, and, beginning in 2011, the
2879	2879	4 utility shall include in the information provided under
2880	2880	5 item (1) of subsection (d) of Section 16-111.5 of the
2881	2881	6 Public Utilities Act the amounts collected under the
2882	2882	7 alternative compliance payment rate or rates for the prior
2883	2883	8 year ending May 31. Notwithstanding any limitation on the
2884	2884	9 procurement of renewable energy resources imposed by item
2885	2885	10 (2) of this subsection (c), the Agency shall increase its
2886	2886	11 spending on the purchase of renewable energy resources to
2887	2887	12 be procured by the electric utility for the next plan year
2888	2888	13 by an amount equal to the amounts collected by the utility
2889	2889	14 under the alternative compliance payment rate or rates in
2890	2890	15 the prior year ending May 31.
2891	2891	16 (6) The electric utility shall be entitled to recover
2892	2892	17 all of its costs associated with the procurement of
2893	2893	18 renewable energy credits under plans approved under this
2894	2894	19 Section and Section 16-111.5 of the Public Utilities Act.
2895	2895	20 These costs shall include associated reasonable expenses
2896	2896	21 for implementing the procurement programs, including, but
2897	2897	22 not limited to, the costs of administering and evaluating
2898	2898	23 the Adjustable Block program, through an automatic
2899	2899	24 adjustment clause tariff in accordance with subsection (k)
2900	2900	25 of Section 16-108 of the Public Utilities Act.
2901	2901	26 (7) Renewable energy credits procured from new
2902	2902
2903	2903
2904	2904
2905	2905
2906	2906
2907	2907	HB3258 - 80 - LRB104 06526 AAS 16562 b
2908	2908
2909	2909
2910	2910	HB3258- 81 -LRB104 06526 AAS 16562 b HB3258 - 81 - LRB104 06526 AAS 16562 b
2911	2911	HB3258 - 81 - LRB104 06526 AAS 16562 b
2912	2912	1 photovoltaic projects or new distributed renewable energy
2913	2913	2 generation devices under this Section after June 1, 2017
2914	2914	3 (the effective date of Public Act 99-906) must be procured
2915	2915	4 from devices installed by a qualified person in compliance
2916	2916	5 with the requirements of Section 16-128A of the Public
2917	2917	6 Utilities Act and any rules or regulations adopted
2918	2918	7 thereunder.
2919	2919	8 In meeting the renewable energy requirements of this
2920	2920	9 subsection (c), to the extent feasible and consistent with
2921	2921	10 State and federal law, the renewable energy credit
2922	2922	11 procurements, Adjustable Block solar program, and
2923	2923	12 community renewable generation program shall provide
2924	2924	13 employment opportunities for all segments of the
2925	2925	14 population and workforce, including minority-owned and
2926	2926	15 female-owned business enterprises, and shall not,
2927	2927	16 consistent with State and federal law, discriminate based
2928	2928	17 on race or socioeconomic status.
2929	2929	18 (c-5) Procurement of renewable energy credits from new
2930	2930	19 renewable energy facilities installed at or adjacent to the
2931	2931	20 sites of electric generating facilities that burn or burned
2932	2932	21 coal as their primary fuel source.
2933	2933	22 (1) In addition to the procurement of renewable energy
2934	2934	23 credits pursuant to long-term renewable resources
2935	2935	24 procurement plans in accordance with subsection (c) of
2936	2936	25 this Section and Section 16-111.5 of the Public Utilities
2937	2937	26 Act, the Agency shall conduct procurement events in
2938	2938
2939	2939
2940	2940
2941	2941
2942	2942
2943	2943	HB3258 - 81 - LRB104 06526 AAS 16562 b
2944	2944
2945	2945
2946	2946	HB3258- 82 -LRB104 06526 AAS 16562 b HB3258 - 82 - LRB104 06526 AAS 16562 b
2947	2947	HB3258 - 82 - LRB104 06526 AAS 16562 b
2948	2948	1 accordance with this subsection (c-5) for the procurement
2949	2949	2 by electric utilities that served more than 300,000 retail
2950	2950	3 customers in this State as of January 1, 2019 of renewable
2951	2951	4 energy credits from new renewable energy facilities to be
2952	2952	5 installed at or adjacent to the sites of electric
2953	2953	6 generating facilities that, as of January 1, 2016, burned
2954	2954	7 coal as their primary fuel source and meet the other
2955	2955	8 criteria specified in this subsection (c-5). For purposes
2956	2956	9 of this subsection (c-5), "new renewable energy facility"
2957	2957	10 means a new utility-scale solar project as defined in this
2958	2958	11 Section 1-75. The renewable energy credits procured
2959	2959	12 pursuant to this subsection (c-5) may be included or
2960	2960	13 counted for purposes of compliance with the amounts of
2961	2961	14 renewable energy credits required to be procured pursuant
2962	2962	15 to subsection (c) of this Section to the extent that there
2963	2963	16 are otherwise shortfalls in compliance with such
2964	2964	17 requirements. The procurement of renewable energy credits
2965	2965	18 by electric utilities pursuant to this subsection (c-5)
2966	2966	19 shall be funded solely by revenues collected from the Coal
2967	2967	20 to Solar and Energy Storage Initiative Charge provided for
2968	2968	21 in this subsection (c-5) and subsection (i-5) of Section
2969	2969	22 16-108 of the Public Utilities Act, shall not be funded by
2970	2970	23 revenues collected through any of the other funding
2971	2971	24 mechanisms provided for in subsection (c) of this Section,
2972	2972	25 and shall not be subject to the limitation imposed by
2973	2973	26 subsection (c) on charges to retail customers for costs to
2974	2974
2975	2975
2976	2976
2977	2977
2978	2978
2979	2979	HB3258 - 82 - LRB104 06526 AAS 16562 b
2980	2980
2981	2981
2982	2982	HB3258- 83 -LRB104 06526 AAS 16562 b HB3258 - 83 - LRB104 06526 AAS 16562 b
2983	2983	HB3258 - 83 - LRB104 06526 AAS 16562 b
2984	2984	1 procure renewable energy resources pursuant to subsection
2985	2985	2 (c), and shall not be subject to any other requirements or
2986	2986	3 limitations of subsection (c).
2987	2987	4 (2) The Agency shall conduct 2 procurement events to
2988	2988	5 select owners of electric generating facilities meeting
2989	2989	6 the eligibility criteria specified in this subsection
2990	2990	7 (c-5) to enter into long-term contracts to sell renewable
2991	2991	8 energy credits to electric utilities serving more than
2992	2992	9 300,000 retail customers in this State as of January 1,
2993	2993	10 2019. The first procurement event shall be conducted no
2994	2994	11 later than March 31, 2022, unless the Agency elects to
2995	2995	12 delay it, until no later than May 1, 2022, due to its
2996	2996	13 overall volume of work, and shall be to select owners of
2997	2997	14 electric generating facilities located in this State and
2998	2998	15 south of federal Interstate Highway 80 that meet the
2999	2999	16 eligibility criteria specified in this subsection (c-5).
3000	3000	17 The second procurement event shall be conducted no sooner
3001	3001	18 than September 30, 2022 and no later than October 31, 2022
3002	3002	19 and shall be to select owners of electric generating
3003	3003	20 facilities located anywhere in this State that meet the
3004	3004	21 eligibility criteria specified in this subsection (c-5).
3005	3005	22 The Agency shall establish and announce a time period,
3006	3006	23 which shall begin no later than 30 days prior to the
3007	3007	24 scheduled date for the procurement event, during which
3008	3008	25 applicants may submit applications to be selected as
3009	3009	26 suppliers of renewable energy credits pursuant to this
3010	3010
3011	3011
3012	3012
3013	3013
3014	3014
3015	3015	HB3258 - 83 - LRB104 06526 AAS 16562 b
3016	3016
3017	3017
3018	3018	HB3258- 84 -LRB104 06526 AAS 16562 b HB3258 - 84 - LRB104 06526 AAS 16562 b
3019	3019	HB3258 - 84 - LRB104 06526 AAS 16562 b
3020	3020	1 subsection (c-5). The eligibility criteria for selection
3021	3021	2 as a supplier of renewable energy credits pursuant to this
3022	3022	3 subsection (c-5) shall be as follows:
3023	3023	4 (A) The applicant owns an electric generating
3024	3024	5 facility located in this State that: (i) as of January
3025	3025	6 1, 2016, burned coal as its primary fuel to generate
3026	3026	7 electricity; and (ii) has, or had prior to retirement,
3027	3027	8 an electric generating capacity of at least 150
3028	3028	9 megawatts. The electric generating facility can be
3029	3029	10 either: (i) retired as of the date of the procurement
3030	3030	11 event; or (ii) still operating as of the date of the
3031	3031	12 procurement event.
3032	3032	13 (B) The applicant is not (i) an electric
3033	3033	14 cooperative as defined in Section 3-119 of the Public
3034	3034	15 Utilities Act, or (ii) an entity described in
3035	3035	16 subsection (b)(1) of Section 3-105 of the Public
3036	3036	17 Utilities Act, or an association or consortium of or
3037	3037	18 an entity owned by entities described in (i) or (ii);
3038	3038	19 and the coal-fueled electric generating facility was
3039	3039	20 at one time owned, in whole or in part, by a public
3040	3040	21 utility as defined in Section 3-105 of the Public
3041	3041	22 Utilities Act.
3042	3042	23 (C) If participating in the first procurement
3043	3043	24 event, the applicant proposes and commits to construct
3044	3044	25 and operate, at the site, and if necessary for
3045	3045	26 sufficient space on property adjacent to the existing
3046	3046
3047	3047
3048	3048
3049	3049
3050	3050
3051	3051	HB3258 - 84 - LRB104 06526 AAS 16562 b
3052	3052
3053	3053
3054	3054	HB3258- 85 -LRB104 06526 AAS 16562 b HB3258 - 85 - LRB104 06526 AAS 16562 b
3055	3055	HB3258 - 85 - LRB104 06526 AAS 16562 b
3056	3056	1 property, at which the electric generating facility
3057	3057	2 identified in paragraph (A) is located: (i) a new
3058	3058	3 renewable energy facility of at least 20 megawatts but
3059	3059	4 no more than 100 megawatts of electric generating
3060	3060	5 capacity, and (ii) an energy storage facility having a
3061	3061	6 storage capacity equal to at least 2 megawatts and at
3062	3062	7 most 10 megawatts. If participating in the second
3063	3063	8 procurement event, the applicant proposes and commits
3064	3064	9 to construct and operate, at the site, and if
3065	3065	10 necessary for sufficient space on property adjacent to
3066	3066	11 the existing property, at which the electric
3067	3067	12 generating facility identified in paragraph (A) is
3068	3068	13 located: (i) a new renewable energy facility of at
3069	3069	14 least 5 megawatts but no more than 20 megawatts of
3070	3070	15 electric generating capacity, and (ii) an energy
3071	3071	16 storage facility having a storage capacity equal to at
3072	3072	17 least 0.5 megawatts and at most one megawatt.
3073	3073	18 (D) The applicant agrees that the new renewable
3074	3074	19 energy facility and the energy storage facility will
3075	3075	20 be constructed or installed by a qualified entity or
3076	3076	21 entities in compliance with the requirements of
3077	3077	22 subsection (g) of Section 16-128A of the Public
3078	3078	23 Utilities Act and any rules adopted thereunder.
3079	3079	24 (E) The applicant agrees that personnel operating
3080	3080	25 the new renewable energy facility and the energy
3081	3081	26 storage facility will have the requisite skills,
3082	3082
3083	3083
3084	3084
3085	3085
3086	3086
3087	3087	HB3258 - 85 - LRB104 06526 AAS 16562 b
3088	3088
3089	3089
3090	3090	HB3258- 86 -LRB104 06526 AAS 16562 b HB3258 - 86 - LRB104 06526 AAS 16562 b
3091	3091	HB3258 - 86 - LRB104 06526 AAS 16562 b
3092	3092	1 knowledge, training, experience, and competence, which
3093	3093	2 may be demonstrated by completion or current
3094	3094	3 participation and ultimate completion by employees of
3095	3095	4 an accredited or otherwise recognized apprenticeship
3096	3096	5 program for the employee's particular craft, trade, or
3097	3097	6 skill, including through training and education
3098	3098	7 courses and opportunities offered by the owner to
3099	3099	8 employees of the coal-fueled electric generating
3100	3100	9 facility or by previous employment experience
3101	3101	10 performing the employee's particular work skill or
3102	3102	11 function.
3103	3103	12 (F) The applicant commits that not less than the
3104	3104	13 prevailing wage, as determined pursuant to the
3105	3105	14 Prevailing Wage Act, will be paid to the applicant's
3106	3106	15 employees engaged in construction activities
3107	3107	16 associated with the new renewable energy facility and
3108	3108	17 the new energy storage facility and to the employees
3109	3109	18 of applicant's contractors engaged in construction
3110	3110	19 activities associated with the new renewable energy
3111	3111	20 facility and the new energy storage facility, and
3112	3112	21 that, on or before the commercial operation date of
3113	3113	22 the new renewable energy facility, the applicant shall
3114	3114	23 file a report with the Agency certifying that the
3115	3115	24 requirements of this subparagraph (F) have been met.
3116	3116	25 (G) (Blank). The applicant commits that if
3117	3117	26 selected, it will negotiate a project labor agreement
3118	3118
3119	3119
3120	3120
3121	3121
3122	3122
3123	3123	HB3258 - 86 - LRB104 06526 AAS 16562 b
3124	3124
3125	3125
3126	3126	HB3258- 87 -LRB104 06526 AAS 16562 b HB3258 - 87 - LRB104 06526 AAS 16562 b
3127	3127	HB3258 - 87 - LRB104 06526 AAS 16562 b
3128	3128	1 for the construction of the new renewable energy
3129	3129	2 facility and associated energy storage facility that
3130	3130	3 includes provisions requiring the parties to the
3131	3131	4 agreement to work together to establish diversity
3132	3132	5 threshold requirements and to ensure best efforts to
3133	3133	6 meet diversity targets, improve diversity at the
3134	3134	7 applicable job site, create diverse apprenticeship
3135	3135	8 opportunities, and create opportunities to employ
3136	3136	9 former coal-fired power plant workers.
3137	3137	10 (H) The applicant commits to enter into a contract
3138	3138	11 or contracts for the applicable duration to provide
3139	3139	12 specified numbers of renewable energy credits each
3140	3140	13 year from the new renewable energy facility to
3141	3141	14 electric utilities that served more than 300,000
3142	3142	15 retail customers in this State as of January 1, 2019,
3143	3143	16 at a price of $30 per renewable energy credit. The
3144	3144	17 price per renewable energy credit shall be fixed at
3145	3145	18 $30 for the applicable duration and the renewable
3146	3146	19 energy credits shall not be indexed renewable energy
3147	3147	20 credits as provided for in item (v) of subparagraph
3148	3148	21 (G) of paragraph (1) of subsection (c) of Section 1-75
3149	3149	22 of this Act. The applicable duration of each contract
3150	3150	23 shall be 20 years, unless the applicant is physically
3151	3151	24 interconnected to the PJM Interconnection, LLC
3152	3152	25 transmission grid and had a generating capacity of at
3153	3153	26 least 1,200 megawatts as of January 1, 2021, in which
3154	3154
3155	3155
3156	3156
3157	3157
3158	3158
3159	3159	HB3258 - 87 - LRB104 06526 AAS 16562 b
3160	3160
3161	3161
3162	3162	HB3258- 88 -LRB104 06526 AAS 16562 b HB3258 - 88 - LRB104 06526 AAS 16562 b
3163	3163	HB3258 - 88 - LRB104 06526 AAS 16562 b
3164	3164	1 case the applicable duration of the contract shall be
3165	3165	2 15 years.
3166	3166	3 (I) The applicant's application is certified by an
3167	3167	4 officer of the applicant and by an officer of the
3168	3168	5 applicant's ultimate parent company, if any.
3169	3169	6 (3) An applicant may submit applications to contract
3170	3170	7 to supply renewable energy credits from more than one new
3171	3171	8 renewable energy facility to be constructed at or adjacent
3172	3172	9 to one or more qualifying electric generating facilities
3173	3173	10 owned by the applicant. The Agency may select new
3174	3174	11 renewable energy facilities to be located at or adjacent
3175	3175	12 to the sites of more than one qualifying electric
3176	3176	13 generation facility owned by an applicant to contract with
3177	3177	14 electric utilities to supply renewable energy credits from
3178	3178	15 such facilities.
3179	3179	16 (4) (Blank). The Agency shall assess fees to each
3180	3180	17 applicant to recover the Agency's costs incurred in
3181	3181	18 receiving and evaluating applications, conducting the
3182	3182	19 procurement event, developing contracts for sale, delivery
3183	3183	20 and purchase of renewable energy credits, and monitoring
3184	3184	21 the administration of such contracts, as provided for in
3185	3185	22 this subsection (c-5), including fees paid to a
3186	3186	23 procurement administrator retained by the Agency for one
3187	3187	24 or more of these purposes.
3188	3188	25 (5) The Agency shall select the applicants and the new
3189	3189	26 renewable energy facilities to contract with electric
3190	3190
3191	3191
3192	3192
3193	3193
3194	3194
3195	3195	HB3258 - 88 - LRB104 06526 AAS 16562 b
3196	3196
3197	3197
3198	3198	HB3258- 89 -LRB104 06526 AAS 16562 b HB3258 - 89 - LRB104 06526 AAS 16562 b
3199	3199	HB3258 - 89 - LRB104 06526 AAS 16562 b
3200	3200	1 utilities to supply renewable energy credits in accordance
3201	3201	2 with this subsection (c-5). In the first procurement
3202	3202	3 event, the Agency shall select applicants and new
3203	3203	4 renewable energy facilities to supply renewable energy
3204	3204	5 credits, at a price of $30 per renewable energy credit,
3205	3205	6 aggregating to no less than 400,000 renewable energy
3206	3206	7 credits per year for the applicable duration, assuming
3207	3207	8 sufficient qualifying applications to supply, in the
3208	3208	9 aggregate, at least that amount of renewable energy
3209	3209	10 credits per year; and not more than 580,000 renewable
3210	3210	11 energy credits per year for the applicable duration. In
3211	3211	12 the second procurement event, the Agency shall select
3212	3212	13 applicants and new renewable energy facilities to supply
3213	3213	14 renewable energy credits, at a price of $30 per renewable
3214	3214	15 energy credit, aggregating to no more than 625,000
3215	3215	16 renewable energy credits per year less the amount of
3216	3216	17 renewable energy credits each year contracted for as a
3217	3217	18 result of the first procurement event, for the applicable
3218	3218	19 durations. The number of renewable energy credits to be
3219	3219	20 procured as specified in this paragraph (5) shall not be
3220	3220	21 reduced based on renewable energy credits procured in the
3221	3221	22 self-direct renewable energy credit compliance program
3222	3222	23 established pursuant to subparagraph (R) of paragraph (1)
3223	3223	24 of subsection (c) of Section 1-75.
3224	3224	25 (6) The obligation to purchase renewable energy
3225	3225	26 credits from the applicants and their new renewable energy
3226	3226
3227	3227
3228	3228
3229	3229
3230	3230
3231	3231	HB3258 - 89 - LRB104 06526 AAS 16562 b
3232	3232
3233	3233
3234	3234	HB3258- 90 -LRB104 06526 AAS 16562 b HB3258 - 90 - LRB104 06526 AAS 16562 b
3235	3235	HB3258 - 90 - LRB104 06526 AAS 16562 b
3236	3236	1 facilities selected by the Agency shall be allocated to
3237	3237	2 the electric utilities based on their respective
3238	3238	3 percentages of kilowatthours delivered to delivery
3239	3239	4 services customers to the aggregate kilowatthour
3240	3240	5 deliveries by the electric utilities to delivery services
3241	3241	6 customers for the year ended December 31, 2021. In order
3242	3242	7 to achieve these allocation percentages between or among
3243	3243	8 the electric utilities, the Agency shall require each
3244	3244	9 applicant that is selected in the procurement event to
3245	3245	10 enter into a contract with each electric utility for the
3246	3246	11 sale and purchase of renewable energy credits from each
3247	3247	12 new renewable energy facility to be constructed and
3248	3248	13 operated by the applicant, with the sale and purchase
3249	3249	14 obligations under the contracts to aggregate to the total
3250	3250	15 number of renewable energy credits per year to be supplied
3251	3251	16 by the applicant from the new renewable energy facility.
3252	3252	17 (7) The Agency shall submit its proposed selection of
3253	3253	18 applicants, new renewable energy facilities to be
3254	3254	19 constructed, and renewable energy credit amounts for each
3255	3255	20 procurement event to the Commission for approval. The
3256	3256	21 Commission shall, within 2 business days after receipt of
3257	3257	22 the Agency's proposed selections, approve the proposed
3258	3258	23 selections if it determines that the applicants and the
3259	3259	24 new renewable energy facilities to be constructed meet the
3260	3260	25 selection criteria set forth in this subsection (c-5) and
3261	3261	26 that the Agency seeks approval for contracts of applicable
3262	3262
3263	3263
3264	3264
3265	3265
3266	3266
3267	3267	HB3258 - 90 - LRB104 06526 AAS 16562 b
3268	3268
3269	3269
3270	3270	HB3258- 91 -LRB104 06526 AAS 16562 b HB3258 - 91 - LRB104 06526 AAS 16562 b
3271	3271	HB3258 - 91 - LRB104 06526 AAS 16562 b
3272	3272	1 durations aggregating to no more than the maximum amount
3273	3273	2 of renewable energy credits per year authorized by this
3274	3274	3 subsection (c-5) for the procurement event, at a price of
3275	3275	4 $30 per renewable energy credit.
3276	3276	5 (8) The Agency, in conjunction with its procurement
3277	3277	6 administrator if one is retained, the electric utilities,
3278	3278	7 and potential applicants for contracts to produce and
3279	3279	8 supply renewable energy credits pursuant to this
3280	3280	9 subsection (c-5), shall develop a standard form contract
3281	3281	10 for the sale, delivery and purchase of renewable energy
3282	3282	11 credits pursuant to this subsection (c-5). Each contract
3283	3283	12 resulting from the first procurement event shall allow for
3284	3284	13 a commercial operation date for the new renewable energy
3285	3285	14 facility of either June 1, 2023 or June 1, 2024, with such
3286	3286	15 dates subject to adjustment as provided in this paragraph.
3287	3287	16 Each contract resulting from the second procurement event
3288	3288	17 shall provide for a commercial operation date on June 1
3289	3289	18 next occurring up to 48 months after execution of the
3290	3290	19 contract. Each contract shall provide that the owner shall
3291	3291	20 receive payments for renewable energy credits for the
3292	3292	21 applicable durations beginning with the commercial
3293	3293	22 operation date of the new renewable energy facility. The
3294	3294	23 form contract shall provide for adjustments to the
3295	3295	24 commercial operation and payment start dates as needed due
3296	3296	25 to any delays in completing the procurement and
3297	3297	26 contracting processes, in finalizing interconnection
3298	3298
3299	3299
3300	3300
3301	3301
3302	3302
3303	3303	HB3258 - 91 - LRB104 06526 AAS 16562 b
3304	3304
3305	3305
3306	3306	HB3258- 92 -LRB104 06526 AAS 16562 b HB3258 - 92 - LRB104 06526 AAS 16562 b
3307	3307	HB3258 - 92 - LRB104 06526 AAS 16562 b
3308	3308	1 agreements and installing interconnection facilities, and
3309	3309	2 in obtaining other necessary governmental permits and
3310	3310	3 approvals. The form contract shall be, to the maximum
3311	3311	4 extent possible, consistent with standard electric
3312	3312	5 industry contracts for sale, delivery, and purchase of
3313	3313	6 renewable energy credits while taking into account the
3314	3314	7 specific requirements of this subsection (c-5). The form
3315	3315	8 contract shall provide for over-delivery and
3316	3316	9 under-delivery of renewable energy credits within
3317	3317	10 reasonable ranges during each 12-month period and penalty,
3318	3318	11 default, and enforcement provisions for failure of the
3319	3319	12 selling party to deliver renewable energy credits as
3320	3320	13 specified in the contract and to comply with the
3321	3321	14 requirements of this subsection (c-5). The standard form
3322	3322	15 contract shall specify that all renewable energy credits
3323	3323	16 delivered to the electric utility pursuant to the contract
3324	3324	17 shall be retired. The Agency shall make the proposed
3325	3325	18 contracts available for a reasonable period for comment by
3326	3326	19 potential applicants, and shall publish the final form
3327	3327	20 contract at least 30 days before the date of the first
3328	3328	21 procurement event.
3329	3329	22 (9) Coal to Solar and Energy Storage Initiative
3330	3330	23 Charge.
3331	3331	24 (A) By no later than July 1, 2022, each electric
3332	3332	25 utility that served more than 300,000 retail customers
3333	3333	26 in this State as of January 1, 2019 shall file a tariff
3334	3334
3335	3335
3336	3336
3337	3337
3338	3338
3339	3339	HB3258 - 92 - LRB104 06526 AAS 16562 b
3340	3340
3341	3341
3342	3342	HB3258- 93 -LRB104 06526 AAS 16562 b HB3258 - 93 - LRB104 06526 AAS 16562 b
3343	3343	HB3258 - 93 - LRB104 06526 AAS 16562 b
3344	3344	1 with the Commission for the billing and collection of
3345	3345	2 a Coal to Solar and Energy Storage Initiative Charge
3346	3346	3 in accordance with subsection (i-5) of Section 16-108
3347	3347	4 of the Public Utilities Act, with such tariff to be
3348	3348	5 effective, following review and approval or
3349	3349	6 modification by the Commission, beginning January 1,
3350	3350	7 2023. The tariff shall provide for the calculation and
3351	3351	8 setting of the electric utility's Coal to Solar and
3352	3352	9 Energy Storage Initiative Charge to collect revenues
3353	3353	10 estimated to be sufficient, in the aggregate, (i) to
3354	3354	11 enable the electric utility to pay for the renewable
3355	3355	12 energy credits it has contracted to purchase in the
3356	3356	13 delivery year beginning June 1, 2023 and each delivery
3357	3357	14 year thereafter from new renewable energy facilities
3358	3358	15 located at the sites of qualifying electric generating
3359	3359	16 facilities, and (ii) to fund the grant payments to be
3360	3360	17 made in each delivery year by the Department of
3361	3361	18 Commerce and Economic Opportunity, or any successor
3362	3362	19 department or agency, which shall be referred to in
3363	3363	20 this subsection (c-5) as the Department, pursuant to
3364	3364	21 paragraph (10) of this subsection (c-5). The electric
3365	3365	22 utility's tariff shall provide for the billing and
3366	3366	23 collection of the Coal to Solar and Energy Storage
3367	3367	24 Initiative Charge on each kilowatthour of electricity
3368	3368	25 delivered to its delivery services customers within
3369	3369	26 its service territory and shall provide for an annual
3370	3370
3371	3371
3372	3372
3373	3373
3374	3374
3375	3375	HB3258 - 93 - LRB104 06526 AAS 16562 b
3376	3376
3377	3377
3378	3378	HB3258- 94 -LRB104 06526 AAS 16562 b HB3258 - 94 - LRB104 06526 AAS 16562 b
3379	3379	HB3258 - 94 - LRB104 06526 AAS 16562 b
3380	3380	1 reconciliation of revenues collected with actual
3381	3381	2 costs, in accordance with subsection (i-5) of Section
3382	3382	3 16-108 of the Public Utilities Act.
3383	3383	4 (B) Each electric utility shall remit on a monthly
3384	3384	5 basis to the State Treasurer, for deposit in the Coal
3385	3385	6 to Solar and Energy Storage Initiative Fund provided
3386	3386	7 for in this subsection (c-5), the electric utility's
3387	3387	8 collections of the Coal to Solar and Energy Storage
3388	3388	9 Initiative Charge in the amount estimated to be needed
3389	3389	10 by the Department for grant payments pursuant to grant
3390	3390	11 contracts entered into by the Department pursuant to
3391	3391	12 paragraph (10) of this subsection (c-5).
3392	3392	13 (10) Coal to Solar and Energy Storage Initiative Fund.
3393	3393	14 (A) The Coal to Solar and Energy Storage
3394	3394	15 Initiative Fund is established as a special fund in
3395	3395	16 the State treasury. The Coal to Solar and Energy
3396	3396	17 Storage Initiative Fund is authorized to receive, by
3397	3397	18 statutory deposit, that portion specified in item (B)
3398	3398	19 of paragraph (9) of this subsection (c-5) of moneys
3399	3399	20 collected by electric utilities through imposition of
3400	3400	21 the Coal to Solar and Energy Storage Initiative Charge
3401	3401	22 required by this subsection (c-5). The Coal to Solar
3402	3402	23 and Energy Storage Initiative Fund shall be
3403	3403	24 administered by the Department to provide grants to
3404	3404	25 support the installation and operation of energy
3405	3405	26 storage facilities at the sites of qualifying electric
3406	3406
3407	3407
3408	3408
3409	3409
3410	3410
3411	3411	HB3258 - 94 - LRB104 06526 AAS 16562 b
3412	3412
3413	3413
3414	3414	HB3258- 95 -LRB104 06526 AAS 16562 b HB3258 - 95 - LRB104 06526 AAS 16562 b
3415	3415	HB3258 - 95 - LRB104 06526 AAS 16562 b
3416	3416	1 generating facilities meeting the criteria specified
3417	3417	2 in this paragraph (10).
3418	3418	3 (B) The Coal to Solar and Energy Storage
3419	3419	4 Initiative Fund shall not be subject to sweeps,
3420	3420	5 administrative charges, or chargebacks, including, but
3421	3421	6 not limited to, those authorized under Section 8h of
3422	3422	7 the State Finance Act, that would in any way result in
3423	3423	8 the transfer of those funds from the Coal to Solar and
3424	3424	9 Energy Storage Initiative Fund to any other fund of
3425	3425	10 this State or in having any such funds utilized for any
3426	3426	11 purpose other than the express purposes set forth in
3427	3427	12 this paragraph (10).
3428	3428	13 (C) The Department shall utilize up to
3429	3429	14 $280,500,000 in the Coal to Solar and Energy Storage
3430	3430	15 Initiative Fund for grants, assuming sufficient
3431	3431	16 qualifying applicants, to support installation of
3432	3432	17 energy storage facilities at the sites of up to 3
3433	3433	18 qualifying electric generating facilities located in
3434	3434	19 the Midcontinent Independent System Operator, Inc.,
3435	3435	20 region in Illinois and the sites of up to 2 qualifying
3436	3436	21 electric generating facilities located in the PJM
3437	3437	22 Interconnection, LLC region in Illinois that meet the
3438	3438	23 criteria set forth in this subparagraph (C). The
3439	3439	24 criteria for receipt of a grant pursuant to this
3440	3440	25 subparagraph (C) are as follows:
3441	3441	26 (1) the electric generating facility at the
3442	3442
3443	3443
3444	3444
3445	3445
3446	3446
3447	3447	HB3258 - 95 - LRB104 06526 AAS 16562 b
3448	3448
3449	3449
3450	3450	HB3258- 96 -LRB104 06526 AAS 16562 b HB3258 - 96 - LRB104 06526 AAS 16562 b
3451	3451	HB3258 - 96 - LRB104 06526 AAS 16562 b
3452	3452	1 site has, or had prior to retirement, an electric
3453	3453	2 generating capacity of at least 150 megawatts;
3454	3454	3 (2) the electric generating facility burns (or
3455	3455	4 burned prior to retirement) coal as its primary
3456	3456	5 source of fuel;
3457	3457	6 (3) if the electric generating facility is
3458	3458	7 retired, it was retired subsequent to January 1,
3459	3459	8 2016;
3460	3460	9 (4) the owner of the electric generating
3461	3461	10 facility has not been selected by the Agency
3462	3462	11 pursuant to this subsection (c-5) of this Section
3463	3463	12 to enter into a contract to sell renewable energy
3464	3464	13 credits to one or more electric utilities from a
3465	3465	14 new renewable energy facility located or to be
3466	3466	15 located at or adjacent to the site at which the
3467	3467	16 electric generating facility is located;
3468	3468	17 (5) the electric generating facility located
3469	3469	18 at the site was at one time owned, in whole or in
3470	3470	19 part, by a public utility as defined in Section
3471	3471	20 3-105 of the Public Utilities Act;
3472	3472	21 (6) the electric generating facility at the
3473	3473	22 site is not owned by (i) an electric cooperative
3474	3474	23 as defined in Section 3-119 of the Public
3475	3475	24 Utilities Act, or (ii) an entity described in
3476	3476	25 subsection (b)(1) of Section 3-105 of the Public
3477	3477	26 Utilities Act, or an association or consortium of
3478	3478
3479	3479
3480	3480
3481	3481
3482	3482
3483	3483	HB3258 - 96 - LRB104 06526 AAS 16562 b
3484	3484
3485	3485
3486	3486	HB3258- 97 -LRB104 06526 AAS 16562 b HB3258 - 97 - LRB104 06526 AAS 16562 b
3487	3487	HB3258 - 97 - LRB104 06526 AAS 16562 b
3488	3488	1 or an entity owned by entities described in items
3489	3489	2 (i) or (ii);
3490	3490	3 (7) the proposed energy storage facility at
3491	3491	4 the site will have energy storage capacity of at
3492	3492	5 least 37 megawatts;
3493	3493	6 (8) the owner commits to place the energy
3494	3494	7 storage facility into commercial operation on
3495	3495	8 either June 1, 2023, June 1, 2024, or June 1, 2025,
3496	3496	9 with such date subject to adjustment as needed due
3497	3497	10 to any delays in completing the grant contracting
3498	3498	11 process, in finalizing interconnection agreements
3499	3499	12 and in installing interconnection facilities, and
3500	3500	13 in obtaining necessary governmental permits and
3501	3501	14 approvals;
3502	3502	15 (9) the owner agrees that the new energy
3503	3503	16 storage facility will be constructed or installed
3504	3504	17 by a qualified entity or entities consistent with
3505	3505	18 the requirements of subsection (g) of Section
3506	3506	19 16-128A of the Public Utilities Act and any rules
3507	3507	20 adopted under that Section;
3508	3508	21 (10) the owner agrees that personnel operating
3509	3509	22 the energy storage facility will have the
3510	3510	23 requisite skills, knowledge, training, experience,
3511	3511	24 and competence, which may be demonstrated by
3512	3512	25 completion or current participation and ultimate
3513	3513	26 completion by employees of an accredited or
3514	3514
3515	3515
3516	3516
3517	3517
3518	3518
3519	3519	HB3258 - 97 - LRB104 06526 AAS 16562 b
3520	3520
3521	3521
3522	3522	HB3258- 98 -LRB104 06526 AAS 16562 b HB3258 - 98 - LRB104 06526 AAS 16562 b
3523	3523	HB3258 - 98 - LRB104 06526 AAS 16562 b
3524	3524	1 otherwise recognized apprenticeship program for
3525	3525	2 the employee's particular craft, trade, or skill,
3526	3526	3 including through training and education courses
3527	3527	4 and opportunities offered by the owner to
3528	3528	5 employees of the coal-fueled electric generating
3529	3529	6 facility or by previous employment experience
3530	3530	7 performing the employee's particular work skill or
3531	3531	8 function;
3532	3532	9 (11) the owner commits that not less than the
3533	3533	10 prevailing wage, as determined pursuant to the
3534	3534	11 Prevailing Wage Act, will be paid to the owner's
3535	3535	12 employees engaged in construction activities
3536	3536	13 associated with the new energy storage facility
3537	3537	14 and to the employees of the owner's contractors
3538	3538	15 engaged in construction activities associated with
3539	3539	16 the new energy storage facility, and that, on or
3540	3540	17 before the commercial operation date of the new
3541	3541	18 energy storage facility, the owner shall file a
3542	3542	19 report with the Department certifying that the
3543	3543	20 requirements of this subparagraph (11) have been
3544	3544	21 met; and
3545	3545	22 (12) (blank). the owner commits that if
3546	3546	23 selected to receive a grant, it will negotiate a
3547	3547	24 project labor agreement for the construction of
3548	3548	25 the new energy storage facility that includes
3549	3549	26 provisions requiring the parties to the agreement
3550	3550
3551	3551
3552	3552
3553	3553
3554	3554
3555	3555	HB3258 - 98 - LRB104 06526 AAS 16562 b
3556	3556
3557	3557
3558	3558	HB3258- 99 -LRB104 06526 AAS 16562 b HB3258 - 99 - LRB104 06526 AAS 16562 b
3559	3559	HB3258 - 99 - LRB104 06526 AAS 16562 b
3560	3560	1 to work together to establish diversity threshold
3561	3561	2 requirements and to ensure best efforts to meet
3562	3562	3 diversity targets, improve diversity at the
3563	3563	4 applicable job site, create diverse apprenticeship
3564	3564	5 opportunities, and create opportunities to employ
3565	3565	6 former coal-fired power plant workers.
3566	3566	7 The Department shall accept applications for this
3567	3567	8 grant program until March 31, 2022 and shall announce
3568	3568	9 the award of grants no later than June 1, 2022. The
3569	3569	10 Department shall make the grant payments to a
3570	3570	11 recipient in equal annual amounts for 10 years
3571	3571	12 following the date the energy storage facility is
3572	3572	13 placed into commercial operation. The annual grant
3573	3573	14 payments to a qualifying energy storage facility shall
3574	3574	15 be $110,000 per megawatt of energy storage capacity,
3575	3575	16 with total annual grant payments pursuant to this
3576	3576	17 subparagraph (C) for qualifying energy storage
3577	3577	18 facilities not to exceed $28,050,000 in any year.
3578	3578	19 (D) Grants of funding for energy storage
3579	3579	20 facilities pursuant to subparagraph (C) of this
3580	3580	21 paragraph (10), from the Coal to Solar and Energy
3581	3581	22 Storage Initiative Fund, shall be memorialized in
3582	3582	23 grant contracts between the Department and the
3583	3583	24 recipient. The grant contracts shall specify the date
3584	3584	25 or dates in each year on which the annual grant
3585	3585	26 payments shall be paid.
3586	3586
3587	3587
3588	3588
3589	3589
3590	3590
3591	3591	HB3258 - 99 - LRB104 06526 AAS 16562 b
3592	3592
3593	3593
3594	3594	HB3258- 100 -LRB104 06526 AAS 16562 b HB3258 - 100 - LRB104 06526 AAS 16562 b
3595	3595	HB3258 - 100 - LRB104 06526 AAS 16562 b
3596	3596	1 (E) All disbursements from the Coal to Solar and
3597	3597	2 Energy Storage Initiative Fund shall be made only upon
3598	3598	3 warrants of the Comptroller drawn upon the Treasurer
3599	3599	4 as custodian of the Fund upon vouchers signed by the
3600	3600	5 Director of the Department or by the person or persons
3601	3601	6 designated by the Director of the Department for that
3602	3602	7 purpose. The Comptroller is authorized to draw the
3603	3603	8 warrants upon vouchers so signed. The Treasurer shall
3604	3604	9 accept all written warrants so signed and shall be
3605	3605	10 released from liability for all payments made on those
3606	3606	11 warrants.
3607	3607	12 (11) (Blank). Diversity, equity, and inclusion plans.
3608	3608	13 (A) Each applicant selected in a procurement event
3609	3609	14 to contract to supply renewable energy credits in
3610	3610	15 accordance with this subsection (c-5) and each owner
3611	3611	16 selected by the Department to receive a grant or
3612	3612	17 grants to support the construction and operation of a
3613	3613	18 new energy storage facility or facilities in
3614	3614	19 accordance with this subsection (c-5) shall, within 60
3615	3615	20 days following the Commission's approval of the
3616	3616	21 applicant to contract to supply renewable energy
3617	3617	22 credits or within 60 days following execution of a
3618	3618	23 grant contract with the Department, as applicable,
3619	3619	24 submit to the Commission a diversity, equity, and
3620	3620	25 inclusion plan setting forth the applicant's or
3621	3621	26 owner's numeric goals for the diversity composition of
3622	3622
3623	3623
3624	3624
3625	3625
3626	3626
3627	3627	HB3258 - 100 - LRB104 06526 AAS 16562 b
3628	3628
3629	3629
3630	3630	HB3258- 101 -LRB104 06526 AAS 16562 b HB3258 - 101 - LRB104 06526 AAS 16562 b
3631	3631	HB3258 - 101 - LRB104 06526 AAS 16562 b
3632	3632	1 its supplier entities for the new renewable energy
3633	3633	2 facility or new energy storage facility, as
3634	3634	3 applicable, which shall be referred to for purposes of
3635	3635	4 this paragraph (11) as the project, and the
3636	3636	5 applicant's or owner's action plan and schedule for
3637	3637	6 achieving those goals.
3638	3638	7 (B) For purposes of this paragraph (11), diversity
3639	3639	8 composition shall be based on the percentage, which
3640	3640	9 shall be a minimum of 25%, of eligible expenditures
3641	3641	10 for contract awards for materials and services (which
3642	3642	11 shall be defined in the plan) to business enterprises
3643	3643	12 owned by minority persons, women, or persons with
3644	3644	13 disabilities as defined in Section 2 of the Business
3645	3645	14 Enterprise for Minorities, Women, and Persons with
3646	3646	15 Disabilities Act, to LGBTQ business enterprises, to
3647	3647	16 veteran-owned business enterprises, and to business
3648	3648	17 enterprises located in environmental justice
3649	3649	18 communities. The diversity composition goals of the
3650	3650	19 plan may include eligible expenditures in areas for
3651	3651	20 vendor or supplier opportunities in addition to
3652	3652	21 development and construction of the project, and may
3653	3653	22 exclude from eligible expenditures materials and
3654	3654	23 services with limited market availability, limited
3655	3655	24 production and availability from suppliers in the
3656	3656	25 United States, such as solar panels and storage
3657	3657	26 batteries, and material and services that are subject
3658	3658
3659	3659
3660	3660
3661	3661
3662	3662
3663	3663	HB3258 - 101 - LRB104 06526 AAS 16562 b
3664	3664
3665	3665
3666	3666	HB3258- 102 -LRB104 06526 AAS 16562 b HB3258 - 102 - LRB104 06526 AAS 16562 b
3667	3667	HB3258 - 102 - LRB104 06526 AAS 16562 b
3668	3668	1 to critical energy infrastructure or cybersecurity
3669	3669	2 requirements or restrictions. The plan may provide
3670	3670	3 that the diversity composition goals may be met
3671	3671	4 through Tier 1 Direct or Tier 2 subcontracting
3672	3672	5 expenditures or a combination thereof for the project.
3673	3673	6 (C) The plan shall provide for, but not be limited
3674	3674	7 to: (i) internal initiatives, including multi-tier
3675	3675	8 initiatives, by the applicant or owner, or by its
3676	3676	9 engineering, procurement and construction contractor
3677	3677	10 if one is used for the project, which for purposes of
3678	3678	11 this paragraph (11) shall be referred to as the EPC
3679	3679	12 contractor, to enable diverse businesses to be
3680	3680	13 considered fairly for selection to provide materials
3681	3681	14 and services; (ii) requirements for the applicant or
3682	3682	15 owner or its EPC contractor to proactively solicit and
3683	3683	16 utilize diverse businesses to provide materials and
3684	3684	17 services; and (iii) requirements for the applicant or
3685	3685	18 owner or its EPC contractor to hire a diverse
3686	3686	19 workforce for the project. The plan shall include a
3687	3687	20 description of the applicant's or owner's diversity
3688	3688	21 recruiting efforts both for the project and for other
3689	3689	22 areas of the applicant's or owner's business
3690	3690	23 operations. The plan shall provide for the imposition
3691	3691	24 of financial penalties on the applicant's or owner's
3692	3692	25 EPC contractor for failure to exercise best efforts to
3693	3693	26 comply with and execute the EPC contractor's diversity
3694	3694
3695	3695
3696	3696
3697	3697
3698	3698
3699	3699	HB3258 - 102 - LRB104 06526 AAS 16562 b
3700	3700
3701	3701
3702	3702	HB3258- 103 -LRB104 06526 AAS 16562 b HB3258 - 103 - LRB104 06526 AAS 16562 b
3703	3703	HB3258 - 103 - LRB104 06526 AAS 16562 b
3704	3704	1 obligations under the plan. The plan may provide for
3705	3705	2 the applicant or owner to set aside a portion of the
3706	3706	3 work on the project to serve as an incubation program
3707	3707	4 for qualified businesses, as specified in the plan,
3708	3708	5 owned by minority persons, women, persons with
3709	3709	6 disabilities, LGBTQ persons, and veterans, and
3710	3710	7 businesses located in environmental justice
3711	3711	8 communities, seeking to enter the renewable energy
3712	3712	9 industry.
3713	3713	10 (D) The applicant or owner may submit a revised or
3714	3714	11 updated plan to the Commission from time to time as
3715	3715	12 circumstances warrant. The applicant or owner shall
3716	3716	13 file annual reports with the Commission detailing the
3717	3717	14 applicant's or owner's progress in implementing its
3718	3718	15 plan and achieving its goals and any modifications the
3719	3719	16 applicant or owner has made to its plan to better
3720	3720	17 achieve its diversity, equity and inclusion goals. The
3721	3721	18 applicant or owner shall file a final report on the
3722	3722	19 fifth June 1 following the commercial operation date
3723	3723	20 of the new renewable energy resource or new energy
3724	3724	21 storage facility, but the applicant or owner shall
3725	3725	22 thereafter continue to be subject to applicable
3726	3726	23 reporting requirements of Section 5-117 of the Public
3727	3727	24 Utilities Act.
3728	3728	25 (c-10) Equity accountability system. It is the purpose of
3729	3729	26 this subsection (c-10) to create an equity accountability
3730	3730
3731	3731
3732	3732
3733	3733
3734	3734
3735	3735	HB3258 - 103 - LRB104 06526 AAS 16562 b
3736	3736
3737	3737
3738	3738	HB3258- 104 -LRB104 06526 AAS 16562 b HB3258 - 104 - LRB104 06526 AAS 16562 b
3739	3739	HB3258 - 104 - LRB104 06526 AAS 16562 b
3740	3740	1 system, which includes the minimum equity standards for all
3741	3741	2 renewable energy procurements, the equity category of the
3742	3742	3 Adjustable Block Program, and the equity prioritization for
3743	3743	4 noncompetitive procurements, that is successful in advancing
3744	3744	5 priority access to the clean energy economy for businesses and
3745	3745	6 workers from communities that have been excluded from economic
3746	3746	7 opportunities in the energy sector, have been subject to
3747	3747	8 disproportionate levels of pollution, and have
3748	3748	9 disproportionately experienced negative public health
3749	3749	10 outcomes. Further, it is the purpose of this subsection to
3750	3750	11 ensure that this equity accountability system is successful in
3751	3751	12 advancing equity across Illinois by providing access to the
3752	3752	13 clean energy economy for businesses and workers from
3753	3753	14 communities that have been historically excluded from economic
3754	3754	15 opportunities in the energy sector, have been subject to
3755	3755	16 disproportionate levels of pollution, and have
3756	3756	17 disproportionately experienced negative public health
3757	3757	18 outcomes.
3758	3758	19 (1) Minimum equity standards. The Agency shall create
3759	3759	20 programs with the purpose of increasing access to and
3760	3760	21 development of equity eligible contractors, who are prime
3761	3761	22 contractors and subcontractors, across all of the programs
3762	3762	23 it manages. All applications for renewable energy credit
3763	3763	24 procurements shall comply with specific minimum equity
3764	3764	25 commitments. Starting in the delivery year immediately
3765	3765	26 following the next long-term renewable resources
3766	3766
3767	3767
3768	3768
3769	3769
3770	3770
3771	3771	HB3258 - 104 - LRB104 06526 AAS 16562 b
3772	3772
3773	3773
3774	3774	HB3258- 105 -LRB104 06526 AAS 16562 b HB3258 - 105 - LRB104 06526 AAS 16562 b
3775	3775	HB3258 - 105 - LRB104 06526 AAS 16562 b
3776	3776	1 procurement plan, at least 10% of the project workforce
3777	3777	2 for each entity participating in a procurement program
3778	3778	3 outlined in this subsection (c-10) must be done by equity
3779	3779	4 eligible persons or equity eligible contractors. The
3780	3780	5 Agency shall increase the minimum percentage each delivery
3781	3781	6 year thereafter by increments that ensure a statewide
3782	3782	7 average of 30% of the project workforce for each entity
3783	3783	8 participating in a procurement program is done by equity
3784	3784	9 eligible persons or equity eligible contractors by 2030.
3785	3785	10 The Agency shall propose a schedule of percentage
3786	3786	11 increases to the minimum equity standards in its draft
3787	3787	12 revised renewable energy resources procurement plan
3788	3788	13 submitted to the Commission for approval pursuant to
3789	3789	14 paragraph (5) of subsection (b) of Section 16-111.5 of the
3790	3790	15 Public Utilities Act. In determining these annual
3791	3791	16 increases, the Agency shall have the discretion to
3792	3792	17 establish different minimum equity standards for different
3793	3793	18 types of procurements and different regions of the State
3794	3794	19 if the Agency finds that doing so will further the
3795	3795	20 purposes of this subsection (c-10). The proposed schedule
3796	3796	21 of annual increases shall be revisited and updated on an
3797	3797	22 annual basis. Revisions shall be developed with
3798	3798	23 stakeholder input, including from equity eligible persons,
3799	3799	24 equity eligible contractors, clean energy industry
3800	3800	25 representatives, and community-based organizations that
3801	3801	26 work with such persons and contractors.
3802	3802
3803	3803
3804	3804
3805	3805
3806	3806
3807	3807	HB3258 - 105 - LRB104 06526 AAS 16562 b
3808	3808
3809	3809
3810	3810	HB3258- 106 -LRB104 06526 AAS 16562 b HB3258 - 106 - LRB104 06526 AAS 16562 b
3811	3811	HB3258 - 106 - LRB104 06526 AAS 16562 b
3812	3812	1 (A) At the start of each delivery year, the Agency
3813	3813	2 shall require a compliance plan from each entity
3814	3814	3 participating in a procurement program of subsection
3815	3815	4 (c) of this Section that demonstrates how they will
3816	3816	5 achieve compliance with the minimum equity standard
3817	3817	6 percentage for work completed in that delivery year.
3818	3818	7 If an entity applies for its approved vendor or
3819	3819	8 designee status between delivery years, the Agency
3820	3820	9 shall require a compliance plan at the time of
3821	3821	10 application.
3822	3822	11 (B) Halfway through each delivery year, the Agency
3823	3823	12 shall require each entity participating in a
3824	3824	13 procurement program to confirm that it will achieve
3825	3825	14 compliance in that delivery year, when applicable. The
3826	3826	15 Agency may offer corrective action plans to entities
3827	3827	16 that are not on track to achieve compliance.
3828	3828	17 (C) At the end of each delivery year, each entity
3829	3829	18 participating and completing work in that delivery
3830	3830	19 year in a procurement program of subsection (c) shall
3831	3831	20 submit a report to the Agency that demonstrates how it
3832	3832	21 achieved compliance with the minimum equity standards
3833	3833	22 percentage for that delivery year.
3834	3834	23 (D) The Agency shall prohibit participation in
3835	3835	24 procurement programs by an approved vendor or
3836	3836	25 designee, as applicable, or entities with which an
3837	3837	26 approved vendor or designee, as applicable, shares a
3838	3838
3839	3839
3840	3840
3841	3841
3842	3842
3843	3843	HB3258 - 106 - LRB104 06526 AAS 16562 b
3844	3844
3845	3845
3846	3846	HB3258- 107 -LRB104 06526 AAS 16562 b HB3258 - 107 - LRB104 06526 AAS 16562 b
3847	3847	HB3258 - 107 - LRB104 06526 AAS 16562 b
3848	3848	1 common parent company if an approved vendor or
3849	3849	2 designee, as applicable, failed to meet the minimum
3850	3850	3 equity standards for the prior delivery year. Waivers
3851	3851	4 approved for lack of equity eligible persons or equity
3852	3852	5 eligible contractors in a geographic area of a project
3853	3853	6 shall not count against the approved vendor or
3854	3854	7 designee. The Agency shall offer a corrective action
3855	3855	8 plan for any such entities to assist them in obtaining
3856	3856	9 compliance and shall allow continued access to
3857	3857	10 procurement programs upon an approved vendor or
3858	3858	11 designee demonstrating compliance.
3859	3859	12 (E) The Agency shall pursue efficiencies achieved
3860	3860	13 by combining with other approved vendor or designee
3861	3861	14 reporting.
3862	3862	15 (2) Equity accountability system within the Adjustable
3863	3863	16 Block program. The equity category described in item (vi)
3864	3864	17 of subparagraph (K) of subsection (c) is only available to
3865	3865	18 applicants that are equity eligible contractors.
3866	3866	19 (3) Equity accountability system within competitive
3867	3867	20 procurements. Through its long-term renewable resources
3868	3868	21 procurement plan, the Agency shall develop requirements
3869	3869	22 for ensuring that competitive procurement processes,
3870	3870	23 including utility-scale solar, utility-scale wind, and
3871	3871	24 brownfield site photovoltaic projects, advance the equity
3872	3872	25 goals of this subsection (c-10). Subject to Commission
3873	3873	26 approval, the Agency shall develop bid application
3874	3874
3875	3875
3876	3876
3877	3877
3878	3878
3879	3879	HB3258 - 107 - LRB104 06526 AAS 16562 b
3880	3880
3881	3881
3882	3882	HB3258- 108 -LRB104 06526 AAS 16562 b HB3258 - 108 - LRB104 06526 AAS 16562 b
3883	3883	HB3258 - 108 - LRB104 06526 AAS 16562 b
3884	3884	1 requirements and a bid evaluation methodology for ensuring
3885	3885	2 that utilization of equity eligible contractors, whether
3886	3886	3 as bidders or as participants on project development, is
3887	3887	4 optimized, including requiring that winning or successful
3888	3888	5 applicants for utility-scale projects are or will partner
3889	3889	6 with equity eligible contractors and giving preference to
3890	3890	7 bids through which a higher portion of contract value
3891	3891	8 flows to equity eligible contractors. To the extent
3892	3892	9 practicable, entities participating in competitive
3893	3893	10 procurements shall also be required to meet all the equity
3894	3894	11 accountability requirements for approved vendors and their
3895	3895	12 designees under this subsection (c-10). In developing
3896	3896	13 these requirements, the Agency shall also consider whether
3897	3897	14 equity goals can be further advanced through additional
3898	3898	15 measures.
3899	3899	16 (4) In the first revision to the long-term renewable
3900	3900	17 energy resources procurement plan and each revision
3901	3901	18 thereafter, the Agency shall include the following:
3902	3902	19 (A) The current status and number of equity
3903	3903	20 eligible contractors listed in the Energy Workforce
3904	3904	21 Equity Database designed in subsection (c-25),
3905	3905	22 including the number of equity eligible contractors
3906	3906	23 with current certifications as issued by the Agency.
3907	3907	24 (B) A mechanism for measuring, tracking, and
3908	3908	25 reporting project workforce at the approved vendor or
3909	3909	26 designee level, as applicable, which shall include a
3910	3910
3911	3911
3912	3912
3913	3913
3914	3914
3915	3915	HB3258 - 108 - LRB104 06526 AAS 16562 b
3916	3916
3917	3917
3918	3918	HB3258- 109 -LRB104 06526 AAS 16562 b HB3258 - 109 - LRB104 06526 AAS 16562 b
3919	3919	HB3258 - 109 - LRB104 06526 AAS 16562 b
3920	3920	1 measurement methodology and records to be made
3921	3921	2 available for audit by the Agency or the Program
3922	3922	3 Administrator.
3923	3923	4 (C) A program for approved vendors, designees,
3924	3924	5 eligible persons, and equity eligible contractors to
3925	3925	6 receive trainings, guidance, and other support from
3926	3926	7 the Agency or its designee regarding the equity
3927	3927	8 category outlined in item (vi) of subparagraph (K) of
3928	3928	9 paragraph (1) of subsection (c) and in meeting the
3929	3929	10 minimum equity standards of this subsection (c-10).
3930	3930	11 (D) A process for certifying equity eligible
3931	3931	12 contractors and equity eligible persons. The
3932	3932	13 certification process shall coordinate with the Energy
3933	3933	14 Workforce Equity Database set forth in subsection
3934	3934	15 (c-25).
3935	3935	16 (E) An application for waiver of the minimum
3936	3936	17 equity standards of this subsection, which the Agency
3937	3937	18 shall have the discretion to grant in rare
3938	3938	19 circumstances. The Agency may grant such a waiver
3939	3939	20 where the applicant provides evidence of significant
3940	3940	21 efforts toward meeting the minimum equity commitment,
3941	3941	22 including: use of the Energy Workforce Equity
3942	3942	23 Database; efforts to hire or contract with entities
3943	3943	24 that hire eligible persons; and efforts to establish
3944	3944	25 contracting relationships with eligible contractors.
3945	3945	26 The Agency shall support applicants in understanding
3946	3946
3947	3947
3948	3948
3949	3949
3950	3950
3951	3951	HB3258 - 109 - LRB104 06526 AAS 16562 b
3952	3952
3953	3953
3954	3954	HB3258- 110 -LRB104 06526 AAS 16562 b HB3258 - 110 - LRB104 06526 AAS 16562 b
3955	3955	HB3258 - 110 - LRB104 06526 AAS 16562 b
3956	3956	1 the Energy Workforce Equity Database and other
3957	3957	2 resources for pursuing compliance of the minimum
3958	3958	3 equity standards. Waivers shall be project-specific,
3959	3959	4 unless the Agency deems it necessary to grant a waiver
3960	3960	5 across a portfolio of projects, and in effect for no
3961	3961	6 longer than one year. Any waiver extension or
3962	3962	7 subsequent waiver request from an applicant shall be
3963	3963	8 subject to the requirements of this Section and shall
3964	3964	9 specify efforts made to reach compliance. When
3965	3965	10 considering whether to grant a waiver, and to what
3966	3966	11 extent, the Agency shall consider the degree to which
3967	3967	12 similarly situated applicants have been able to meet
3968	3968	13 these minimum equity commitments. For repeated waiver
3969	3969	14 requests for specific lack of eligible persons or
3970	3970	15 eligible contractors available, the Agency shall make
3971	3971	16 recommendations to target recruitment to add such
3972	3972	17 eligible persons or eligible contractors to the
3973	3973	18 database.
3974	3974	19 (5) The Agency shall collect information about work on
3975	3975	20 projects or portfolios of projects subject to these
3976	3976	21 minimum equity standards to ensure compliance with this
3977	3977	22 subsection (c-10). Reporting in furtherance of this
3978	3978	23 requirement may be combined with other annual reporting
3979	3979	24 requirements. Such reporting shall include proof of
3980	3980	25 certification of each equity eligible contractor or equity
3981	3981	26 eligible person during the applicable time period.
3982	3982
3983	3983
3984	3984
3985	3985
3986	3986
3987	3987	HB3258 - 110 - LRB104 06526 AAS 16562 b
3988	3988
3989	3989
3990	3990	HB3258- 111 -LRB104 06526 AAS 16562 b HB3258 - 111 - LRB104 06526 AAS 16562 b
3991	3991	HB3258 - 111 - LRB104 06526 AAS 16562 b
3992	3992	1 (6) The Agency shall keep confidential all information
3993	3993	2 and communication that provides private or personal
3994	3994	3 information.
3995	3995	4 (7) Modifications to the equity accountability system.
3996	3996	5 As part of the update of the long-term renewable resources
3997	3997	6 procurement plan to be initiated in 2023, or sooner if the
3998	3998	7 Agency deems necessary, the Agency shall determine the
3999	3999	8 extent to which the equity accountability system described
4000	4000	9 in this subsection (c-10) has advanced the goals of this
4001	4001	10 amendatory Act of the 102nd General Assembly, including
4002	4002	11 through the inclusion of equity eligible persons and
4003	4003	12 equity eligible contractors in renewable energy credit
4004	4004	13 projects. If the Agency finds that the equity
4005	4005	14 accountability system has failed to meet those goals to
4006	4006	15 its fullest potential, the Agency may revise the following
4007	4007	16 criteria for future Agency procurements: (A) the
4008	4008	17 percentage of project workforce, or other appropriate
4009	4009	18 workforce measure, certified as equity eligible persons or
4010	4010	19 equity eligible contractors; (B) definitions for equity
4011	4011	20 investment eligible persons and equity investment eligible
4012	4012	21 community; and (C) such other modifications necessary to
4013	4013	22 advance the goals of this amendatory Act of the 102nd
4014	4014	23 General Assembly effectively. Such revised criteria may
4015	4015	24 also establish distinct equity accountability systems for
4016	4016	25 different types of procurements or different regions of
4017	4017	26 the State if the Agency finds that doing so will further
4018	4018
4019	4019
4020	4020
4021	4021
4022	4022
4023	4023	HB3258 - 111 - LRB104 06526 AAS 16562 b
4024	4024
4025	4025
4026	4026	HB3258- 112 -LRB104 06526 AAS 16562 b HB3258 - 112 - LRB104 06526 AAS 16562 b
4027	4027	HB3258 - 112 - LRB104 06526 AAS 16562 b
4028	4028	1 the purposes of such programs. Revisions shall be
4029	4029	2 developed with stakeholder input, including from equity
4030	4030	3 eligible persons, equity eligible contractors, and
4031	4031	4 community-based organizations that work with such persons
4032	4032	5 and contractors.
4033	4033	6 (c-15) Racial discrimination elimination powers and
4034	4034	7 process.
4035	4035	8 (1) Purpose. It is the purpose of this subsection to
4036	4036	9 empower the Agency and other State actors to remedy racial
4037	4037	10 discrimination in Illinois' clean energy economy as
4038	4038	11 effectively and expediently as possible, including through
4039	4039	12 the use of race-conscious remedies, such as race-conscious
4040	4040	13 contracting and hiring goals, as consistent with State and
4041	4041	14 federal law.
4042	4042	15 (2) Racial disparity and discrimination review
4043	4043	16 process.
4044	4044	17 (A) Within one year after awarding contracts using
4045	4045	18 the equity actions processes established in this
4046	4046	19 Section, the Agency shall publish a report evaluating
4047	4047	20 the effectiveness of the equity actions point criteria
4048	4048	21 of this Section in increasing participation of equity
4049	4049	22 eligible persons and equity eligible contractors. The
4050	4050	23 report shall disaggregate participating workers and
4051	4051	24 contractors by race and ethnicity. The report shall be
4052	4052	25 forwarded to the Governor, the General Assembly, and
4053	4053	26 the Illinois Commerce Commission and be made available
4054	4054
4055	4055
4056	4056
4057	4057
4058	4058
4059	4059	HB3258 - 112 - LRB104 06526 AAS 16562 b
4060	4060
4061	4061
4062	4062	HB3258- 113 -LRB104 06526 AAS 16562 b HB3258 - 113 - LRB104 06526 AAS 16562 b
4063	4063	HB3258 - 113 - LRB104 06526 AAS 16562 b
4064	4064	1 to the public.
4065	4065	2 (B) As soon as is practicable thereafter, the
4066	4066	3 Agency, in consultation with the Department of
4067	4067	4 Commerce and Economic Opportunity, Department of
4068	4068	5 Labor, and other agencies that may be relevant, shall
4069	4069	6 commission and publish a disparity and availability
4070	4070	7 study that measures the presence and impact of
4071	4071	8 discrimination on minority businesses and workers in
4072	4072	9 Illinois' clean energy economy. The Agency may hire
4073	4073	10 consultants and experts to conduct the disparity and
4074	4074	11 availability study, with the retention of those
4075	4075	12 consultants and experts exempt from the requirements
4076	4076	13 of Section 20-10 of the Illinois Procurement Code. The
4077	4077	14 Illinois Power Agency shall forward a copy of its
4078	4078	15 findings and recommendations to the Governor, the
4079	4079	16 General Assembly, and the Illinois Commerce
4080	4080	17 Commission. If the disparity and availability study
4081	4081	18 establishes a strong basis in evidence that there is
4082	4082	19 discrimination in Illinois' clean energy economy, the
4083	4083	20 Agency, Department of Commerce and Economic
4084	4084	21 Opportunity, Department of Labor, Department of
4085	4085	22 Corrections, and other appropriate agencies shall take
4086	4086	23 appropriate remedial actions, including race-conscious
4087	4087	24 remedial actions as consistent with State and federal
4088	4088	25 law, to effectively remedy this discrimination. Such
4089	4089	26 remedies may include modification of the equity
4090	4090
4091	4091
4092	4092
4093	4093
4094	4094
4095	4095	HB3258 - 113 - LRB104 06526 AAS 16562 b
4096	4096
4097	4097
4098	4098	HB3258- 114 -LRB104 06526 AAS 16562 b HB3258 - 114 - LRB104 06526 AAS 16562 b
4099	4099	HB3258 - 114 - LRB104 06526 AAS 16562 b
4100	4100	1 accountability system as described in subsection
4101	4101	2 (c-10).
4102	4102	3 (c-20) Program data collection.
4103	4103	4 (1) Purpose. Data collection, data analysis, and
4104	4104	5 reporting are critical to ensure that the benefits of the
4105	4105	6 clean energy economy provided to Illinois residents and
4106	4106	7 businesses are equitably distributed across the State. The
4107	4107	8 Agency shall collect data from program applicants in order
4108	4108	9 to track and improve equitable distribution of benefits
4109	4109	10 across Illinois communities for all procurements the
4110	4110	11 Agency conducts. The Agency shall use this data to, among
4111	4111	12 other things, measure any potential impact of racial
4112	4112	13 discrimination on the distribution of benefits and provide
4113	4113	14 information necessary to correct any discrimination
4114	4114	15 through methods consistent with State and federal law.
4115	4115	16 (2) Agency collection of program data. The Agency
4116	4116	17 shall collect demographic and geographic data for each
4117	4117	18 entity awarded contracts under any Agency-administered
4118	4118	19 program.
4119	4119	20 (3) Required information to be collected. The Agency
4120	4120	21 shall collect the following information from applicants
4121	4121	22 and program participants where applicable:
4122	4122	23 (A) demographic information, including racial or
4123	4123	24 ethnic identity for real persons employed, contracted,
4124	4124	25 or subcontracted through the program and owners of
4125	4125	26 businesses or entities that apply to receive renewable
4126	4126
4127	4127
4128	4128
4129	4129
4130	4130
4131	4131	HB3258 - 114 - LRB104 06526 AAS 16562 b
4132	4132
4133	4133
4134	4134	HB3258- 115 -LRB104 06526 AAS 16562 b HB3258 - 115 - LRB104 06526 AAS 16562 b
4135	4135	HB3258 - 115 - LRB104 06526 AAS 16562 b
4136	4136	1 energy credits from the Agency;
4137	4137	2 (B) geographic location of the residency of real
4138	4138	3 persons employed, contracted, or subcontracted through
4139	4139	4 the program and geographic location of the
4140	4140	5 headquarters of the business or entity that applies to
4141	4141	6 receive renewable energy credits from the Agency; and
4142	4142	7 (C) any other information the Agency determines is
4143	4143	8 necessary for the purpose of achieving the purpose of
4144	4144	9 this subsection.
4145	4145	10 (4) Publication of collected information. The Agency
4146	4146	11 shall publish, at least annually, information on the
4147	4147	12 demographics of program participants on an aggregate
4148	4148	13 basis.
4149	4149	14 (5) Nothing in this subsection shall be interpreted to
4150	4150	15 limit the authority of the Agency, or other agency or
4151	4151	16 department of the State, to require or collect demographic
4152	4152	17 information from applicants of other State programs.
4153	4153	18 (c-25) Energy Workforce Equity Database.
4154	4154	19 (1) The Agency, in consultation with the Department of
4155	4155	20 Commerce and Economic Opportunity, shall create an Energy
4156	4156	21 Workforce Equity Database, and may contract with a third
4157	4157	22 party to do so ("database program administrator"). If the
4158	4158	23 Department decides to contract with a third party, that
4159	4159	24 third party shall be exempt from the requirements of
4160	4160	25 Section 20-10 of the Illinois Procurement Code. The Energy
4161	4161	26 Workforce Equity Database shall be a searchable database
4162	4162
4163	4163
4164	4164
4165	4165
4166	4166
4167	4167	HB3258 - 115 - LRB104 06526 AAS 16562 b
4168	4168
4169	4169
4170	4170	HB3258- 116 -LRB104 06526 AAS 16562 b HB3258 - 116 - LRB104 06526 AAS 16562 b
4171	4171	HB3258 - 116 - LRB104 06526 AAS 16562 b
4172	4172	1 of suppliers, vendors, and subcontractors for clean energy
4173	4173	2 industries that is:
4174	4174	3 (A) publicly accessible;
4175	4175	4 (B) easy for people to find and use;
4176	4176	5 (C) organized by company specialty or field;
4177	4177	6 (D) region-specific; and
4178	4178	7 (E) populated with information including, but not
4179	4179	8 limited to, contacts for suppliers, vendors, or
4180	4180	9 subcontractors who are minority and women-owned
4181	4181	10 business enterprise certified or who participate or
4182	4182	11 have participated in any of the programs described in
4183	4183	12 this Act.
4184	4184	13 (2) The Agency shall create an easily accessible,
4185	4185	14 public facing online tool using the database information
4186	4186	15 that includes, at a minimum, the following:
4187	4187	16 (A) a map of environmental justice and equity
4188	4188	17 investment eligible communities;
4189	4189	18 (B) job postings and recruiting opportunities;
4190	4190	19 (C) a means by which recruiting clean energy
4191	4191	20 companies can find and interact with current or former
4192	4192	21 participants of clean energy workforce training
4193	4193	22 programs;
4194	4194	23 (D) information on workforce training service
4195	4195	24 providers and training opportunities available to
4196	4196	25 prospective workers;
4197	4197	26 (E) (blank); renewable energy company diversity
4198	4198
4199	4199
4200	4200
4201	4201
4202	4202
4203	4203	HB3258 - 116 - LRB104 06526 AAS 16562 b
4204	4204
4205	4205
4206	4206	HB3258- 117 -LRB104 06526 AAS 16562 b HB3258 - 117 - LRB104 06526 AAS 16562 b
4207	4207	HB3258 - 117 - LRB104 06526 AAS 16562 b
4208	4208	1 reporting;
4209	4209	2 (F) a list of equity eligible contractors with
4210	4210	3 their contact information, types of work performed,
4211	4211	4 and locations worked in;
4212	4212	5 (G) reporting on outcomes of the programs
4213	4213	6 described in the workforce programs of the Energy
4214	4214	7 Transition Act, including information such as, but not
4215	4215	8 limited to, retention rate, graduation rate, and
4216	4216	9 placement rates of trainees; and
4217	4217	10 (H) information about the Jobs and Environmental
4218	4218	11 Justice Grant Program, the Clean Energy Jobs and
4219	4219	12 Justice Fund, and other sources of capital.
4220	4220	13 (3) The Agency shall ensure the database is regularly
4221	4221	14 updated to ensure information is current and shall
4222	4222	15 coordinate with the Department of Commerce and Economic
4223	4223	16 Opportunity to ensure that it includes information on
4224	4224	17 individuals and entities that are or have participated in
4225	4225	18 the Clean Jobs Workforce Network Program, Clean Energy
4226	4226	19 Contractor Incubator Program, Returning Residents Clean
4227	4227	20 Jobs Training Program, or Clean Energy Primes Contractor
4228	4228	21 Accelerator Program.
4229	4229	22 (c-30) Enforcement of minimum equity standards. All
4230	4230	23 entities seeking renewable energy credits must submit an
4231	4231	24 annual report to demonstrate compliance with each of the
4232	4232	25 equity commitments required under subsection (c-10). If the
4233	4233	26 Agency concludes the entity has not met or maintained its
4234	4234
4235	4235
4236	4236
4237	4237
4238	4238
4239	4239	HB3258 - 117 - LRB104 06526 AAS 16562 b
4240	4240
4241	4241
4242	4242	HB3258- 118 -LRB104 06526 AAS 16562 b HB3258 - 118 - LRB104 06526 AAS 16562 b
4243	4243	HB3258 - 118 - LRB104 06526 AAS 16562 b
4244	4244	1 minimum equity standards required under the applicable
4245	4245	2 subparagraphs under subsection (c-10), the Agency shall deny
4246	4246	3 the entity's ability to participate in procurement programs in
4247	4247	4 subsection (c), including by withholding approved vendor or
4248	4248	5 designee status. The Agency may require the entity to enter
4249	4249	6 into a corrective action plan. An entity that is not
4250	4250	7 recertified for failing to meet required equity actions in
4251	4251	8 subparagraph (c-10) may reapply once they have a corrective
4252	4252	9 action plan and achieve compliance with the minimum equity
4253	4253	10 standards.
4254	4254	11 (d) Clean coal portfolio standard.
4255	4255	12 (1) The procurement plans shall include electricity
4256	4256	13 generated using clean coal. Each utility shall enter into
4257	4257	14 one or more sourcing agreements with the initial clean
4258	4258	15 coal facility, as provided in paragraph (3) of this
4259	4259	16 subsection (d), covering electricity generated by the
4260	4260	17 initial clean coal facility representing at least 5% of
4261	4261	18 each utility's total supply to serve the load of eligible
4262	4262	19 retail customers in 2015 and each year thereafter, as
4263	4263	20 described in paragraph (3) of this subsection (d), subject
4264	4264	21 to the limits specified in paragraph (2) of this
4265	4265	22 subsection (d). It is the goal of the State that by January
4266	4266	23 1, 2025, 25% of the electricity used in the State shall be
4267	4267	24 generated by cost-effective clean coal facilities. For
4268	4268	25 purposes of this subsection (d), "cost-effective" means
4269	4269	26 that the expenditures pursuant to such sourcing agreements
4270	4270
4271	4271
4272	4272
4273	4273
4274	4274
4275	4275	HB3258 - 118 - LRB104 06526 AAS 16562 b
4276	4276
4277	4277
4278	4278	HB3258- 119 -LRB104 06526 AAS 16562 b HB3258 - 119 - LRB104 06526 AAS 16562 b
4279	4279	HB3258 - 119 - LRB104 06526 AAS 16562 b
4280	4280	1 do not cause the limit stated in paragraph (2) of this
4281	4281	2 subsection (d) to be exceeded and do not exceed cost-based
4282	4282	3 benchmarks, which shall be developed to assess all
4283	4283	4 expenditures pursuant to such sourcing agreements covering
4284	4284	5 electricity generated by clean coal facilities, other than
4285	4285	6 the initial clean coal facility, by the procurement
4286	4286	7 administrator, in consultation with the Commission staff,
4287	4287	8 Agency staff, and the procurement monitor and shall be
4288	4288	9 subject to Commission review and approval.
4289	4289	10 A utility party to a sourcing agreement shall
4290	4290	11 immediately retire any emission credits that it receives
4291	4291	12 in connection with the electricity covered by such
4292	4292	13 agreement.
4293	4293	14 Utilities shall maintain adequate records documenting
4294	4294	15 the purchases under the sourcing agreement to comply with
4295	4295	16 this subsection (d) and shall file an accounting with the
4296	4296	17 load forecast that must be filed with the Agency by July 15
4297	4297	18 of each year, in accordance with subsection (d) of Section
4298	4298	19 16-111.5 of the Public Utilities Act.
4299	4299	20 A utility shall be deemed to have complied with the
4300	4300	21 clean coal portfolio standard specified in this subsection
4301	4301	22 (d) if the utility enters into a sourcing agreement as
4302	4302	23 required by this subsection (d).
4303	4303	24 (2) For purposes of this subsection (d), the required
4304	4304	25 execution of sourcing agreements with the initial clean
4305	4305	26 coal facility for a particular year shall be measured as a
4306	4306
4307	4307
4308	4308
4309	4309
4310	4310
4311	4311	HB3258 - 119 - LRB104 06526 AAS 16562 b
4312	4312
4313	4313
4314	4314	HB3258- 120 -LRB104 06526 AAS 16562 b HB3258 - 120 - LRB104 06526 AAS 16562 b
4315	4315	HB3258 - 120 - LRB104 06526 AAS 16562 b
4316	4316	1 percentage of the actual amount of electricity
4317	4317	2 (megawatt-hours) supplied by the electric utility to
4318	4318	3 eligible retail customers in the planning year ending
4319	4319	4 immediately prior to the agreement's execution. For
4320	4320	5 purposes of this subsection (d), the amount paid per
4321	4321	6 kilowatthour means the total amount paid for electric
4322	4322	7 service expressed on a per kilowatthour basis. For
4323	4323	8 purposes of this subsection (d), the total amount paid for
4324	4324	9 electric service includes without limitation amounts paid
4325	4325	10 for supply, transmission, distribution, surcharges and
4326	4326	11 add-on taxes.
4327	4327	12 Notwithstanding the requirements of this subsection
4328	4328	13 (d), the total amount paid under sourcing agreements with
4329	4329	14 clean coal facilities pursuant to the procurement plan for
4330	4330	15 any given year shall be reduced by an amount necessary to
4331	4331	16 limit the annual estimated average net increase due to the
4332	4332	17 costs of these resources included in the amounts paid by
4333	4333	18 eligible retail customers in connection with electric
4334	4334	19 service to:
4335	4335	20 (A) in 2010, no more than 0.5% of the amount paid
4336	4336	21 per kilowatthour by those customers during the year
4337	4337	22 ending May 31, 2009;
4338	4338	23 (B) in 2011, the greater of an additional 0.5% of
4339	4339	24 the amount paid per kilowatthour by those customers
4340	4340	25 during the year ending May 31, 2010 or 1% of the amount
4341	4341	26 paid per kilowatthour by those customers during the
4342	4342
4343	4343
4344	4344
4345	4345
4346	4346
4347	4347	HB3258 - 120 - LRB104 06526 AAS 16562 b
4348	4348
4349	4349
4350	4350	HB3258- 121 -LRB104 06526 AAS 16562 b HB3258 - 121 - LRB104 06526 AAS 16562 b
4351	4351	HB3258 - 121 - LRB104 06526 AAS 16562 b
4352	4352	1 year ending May 31, 2009;
4353	4353	2 (C) in 2012, the greater of an additional 0.5% of
4354	4354	3 the amount paid per kilowatthour by those customers
4355	4355	4 during the year ending May 31, 2011 or 1.5% of the
4356	4356	5 amount paid per kilowatthour by those customers during
4357	4357	6 the year ending May 31, 2009;
4358	4358	7 (D) in 2013, the greater of an additional 0.5% of
4359	4359	8 the amount paid per kilowatthour by those customers
4360	4360	9 during the year ending May 31, 2012 or 2% of the amount
4361	4361	10 paid per kilowatthour by those customers during the
4362	4362	11 year ending May 31, 2009; and
4363	4363	12 (E) thereafter, the total amount paid under
4364	4364	13 sourcing agreements with clean coal facilities
4365	4365	14 pursuant to the procurement plan for any single year
4366	4366	15 shall be reduced by an amount necessary to limit the
4367	4367	16 estimated average net increase due to the cost of
4368	4368	17 these resources included in the amounts paid by
4369	4369	18 eligible retail customers in connection with electric
4370	4370	19 service to no more than the greater of (i) 2.015% of
4371	4371	20 the amount paid per kilowatthour by those customers
4372	4372	21 during the year ending May 31, 2009 or (ii) the
4373	4373	22 incremental amount per kilowatthour paid for these
4374	4374	23 resources in 2013. These requirements may be altered
4375	4375	24 only as provided by statute.
4376	4376	25 No later than June 30, 2015, the Commission shall
4377	4377	26 review the limitation on the total amount paid under
4378	4378
4379	4379
4380	4380
4381	4381
4382	4382
4383	4383	HB3258 - 121 - LRB104 06526 AAS 16562 b
4384	4384
4385	4385
4386	4386	HB3258- 122 -LRB104 06526 AAS 16562 b HB3258 - 122 - LRB104 06526 AAS 16562 b
4387	4387	HB3258 - 122 - LRB104 06526 AAS 16562 b
4388	4388	1 sourcing agreements, if any, with clean coal facilities
4389	4389	2 pursuant to this subsection (d) and report to the General
4390	4390	3 Assembly its findings as to whether that limitation unduly
4391	4391	4 constrains the amount of electricity generated by
4392	4392	5 cost-effective clean coal facilities that is covered by
4393	4393	6 sourcing agreements.
4394	4394	7 (3) Initial clean coal facility. In order to promote
4395	4395	8 development of clean coal facilities in Illinois, each
4396	4396	9 electric utility subject to this Section shall execute a
4397	4397	10 sourcing agreement to source electricity from a proposed
4398	4398	11 clean coal facility in Illinois (the "initial clean coal
4399	4399	12 facility") that will have a nameplate capacity of at least
4400	4400	13 500 MW when commercial operation commences, that has a
4401	4401	14 final Clean Air Act permit on June 1, 2009 (the effective
4402	4402	15 date of Public Act 95-1027), and that will meet the
4403	4403	16 definition of clean coal facility in Section 1-10 of this
4404	4404	17 Act when commercial operation commences. The sourcing
4405	4405	18 agreements with this initial clean coal facility shall be
4406	4406	19 subject to both approval of the initial clean coal
4407	4407	20 facility by the General Assembly and satisfaction of the
4408	4408	21 requirements of paragraph (4) of this subsection (d) and
4409	4409	22 shall be executed within 90 days after any such approval
4410	4410	23 by the General Assembly. The Agency and the Commission
4411	4411	24 shall have authority to inspect all books and records
4412	4412	25 associated with the initial clean coal facility during the
4413	4413	26 term of such a sourcing agreement. A utility's sourcing
4414	4414
4415	4415
4416	4416
4417	4417
4418	4418
4419	4419	HB3258 - 122 - LRB104 06526 AAS 16562 b
4420	4420
4421	4421
4422	4422	HB3258- 123 -LRB104 06526 AAS 16562 b HB3258 - 123 - LRB104 06526 AAS 16562 b
4423	4423	HB3258 - 123 - LRB104 06526 AAS 16562 b
4424	4424	1 agreement for electricity produced by the initial clean
4425	4425	2 coal facility shall include:
4426	4426	3 (A) a formula contractual price (the "contract
4427	4427	4 price") approved pursuant to paragraph (4) of this
4428	4428	5 subsection (d), which shall:
4429	4429	6 (i) be determined using a cost of service
4430	4430	7 methodology employing either a level or deferred
4431	4431	8 capital recovery component, based on a capital
4432	4432	9 structure consisting of 45% equity and 55% debt,
4433	4433	10 and a return on equity as may be approved by the
4434	4434	11 Federal Energy Regulatory Commission, which in any
4435	4435	12 case may not exceed the lower of 11.5% or the rate
4436	4436	13 of return approved by the General Assembly
4437	4437	14 pursuant to paragraph (4) of this subsection (d);
4438	4438	15 and
4439	4439	16 (ii) provide that all miscellaneous net
4440	4440	17 revenue, including but not limited to net revenue
4441	4441	18 from the sale of emission allowances, if any,
4442	4442	19 substitute natural gas, if any, grants or other
4443	4443	20 support provided by the State of Illinois or the
4444	4444	21 United States Government, firm transmission
4445	4445	22 rights, if any, by-products produced by the
4446	4446	23 facility, energy or capacity derived from the
4447	4447	24 facility and not covered by a sourcing agreement
4448	4448	25 pursuant to paragraph (3) of this subsection (d)
4449	4449	26 or item (5) of subsection (d) of Section 16-115 of
4450	4450
4451	4451
4452	4452
4453	4453
4454	4454
4455	4455	HB3258 - 123 - LRB104 06526 AAS 16562 b
4456	4456
4457	4457
4458	4458	HB3258- 124 -LRB104 06526 AAS 16562 b HB3258 - 124 - LRB104 06526 AAS 16562 b
4459	4459	HB3258 - 124 - LRB104 06526 AAS 16562 b
4460	4460	1 the Public Utilities Act, whether generated from
4461	4461	2 the synthesis gas derived from coal, from SNG, or
4462	4462	3 from natural gas, shall be credited against the
4463	4463	4 revenue requirement for this initial clean coal
4464	4464	5 facility;
4465	4465	6 (B) power purchase provisions, which shall:
4466	4466	7 (i) provide that the utility party to such
4467	4467	8 sourcing agreement shall pay the contract price
4468	4468	9 for electricity delivered under such sourcing
4469	4469	10 agreement;
4470	4470	11 (ii) require delivery of electricity to the
4471	4471	12 regional transmission organization market of the
4472	4472	13 utility that is party to such sourcing agreement;
4473	4473	14 (iii) require the utility party to such
4474	4474	15 sourcing agreement to buy from the initial clean
4475	4475	16 coal facility in each hour an amount of energy
4476	4476	17 equal to all clean coal energy made available from
4477	4477	18 the initial clean coal facility during such hour
4478	4478	19 times a fraction, the numerator of which is such
4479	4479	20 utility's retail market sales of electricity
4480	4480	21 (expressed in kilowatthours sold) in the State
4481	4481	22 during the prior calendar month and the
4482	4482	23 denominator of which is the total retail market
4483	4483	24 sales of electricity (expressed in kilowatthours
4484	4484	25 sold) in the State by utilities during such prior
4485	4485	26 month and the sales of electricity (expressed in
4486	4486
4487	4487
4488	4488
4489	4489
4490	4490
4491	4491	HB3258 - 124 - LRB104 06526 AAS 16562 b
4492	4492
4493	4493
4494	4494	HB3258- 125 -LRB104 06526 AAS 16562 b HB3258 - 125 - LRB104 06526 AAS 16562 b
4495	4495	HB3258 - 125 - LRB104 06526 AAS 16562 b
4496	4496	1 kilowatthours sold) in the State by alternative
4497	4497	2 retail electric suppliers during such prior month
4498	4498	3 that are subject to the requirements of this
4499	4499	4 subsection (d) and paragraph (5) of subsection (d)
4500	4500	5 of Section 16-115 of the Public Utilities Act,
4501	4501	6 provided that the amount purchased by the utility
4502	4502	7 in any year will be limited by paragraph (2) of
4503	4503	8 this subsection (d); and
4504	4504	9 (iv) be considered pre-existing contracts in
4505	4505	10 such utility's procurement plans for eligible
4506	4506	11 retail customers;
4507	4507	12 (C) contract for differences provisions, which
4508	4508	13 shall:
4509	4509	14 (i) require the utility party to such sourcing
4510	4510	15 agreement to contract with the initial clean coal
4511	4511	16 facility in each hour with respect to an amount of
4512	4512	17 energy equal to all clean coal energy made
4513	4513	18 available from the initial clean coal facility
4514	4514	19 during such hour times a fraction, the numerator
4515	4515	20 of which is such utility's retail market sales of
4516	4516	21 electricity (expressed in kilowatthours sold) in
4517	4517	22 the utility's service territory in the State
4518	4518	23 during the prior calendar month and the
4519	4519	24 denominator of which is the total retail market
4520	4520	25 sales of electricity (expressed in kilowatthours
4521	4521	26 sold) in the State by utilities during such prior
4522	4522
4523	4523
4524	4524
4525	4525
4526	4526
4527	4527	HB3258 - 125 - LRB104 06526 AAS 16562 b
4528	4528
4529	4529
4530	4530	HB3258- 126 -LRB104 06526 AAS 16562 b HB3258 - 126 - LRB104 06526 AAS 16562 b
4531	4531	HB3258 - 126 - LRB104 06526 AAS 16562 b
4532	4532	1 month and the sales of electricity (expressed in
4533	4533	2 kilowatthours sold) in the State by alternative
4534	4534	3 retail electric suppliers during such prior month
4535	4535	4 that are subject to the requirements of this
4536	4536	5 subsection (d) and paragraph (5) of subsection (d)
4537	4537	6 of Section 16-115 of the Public Utilities Act,
4538	4538	7 provided that the amount paid by the utility in
4539	4539	8 any year will be limited by paragraph (2) of this
4540	4540	9 subsection (d);
4541	4541	10 (ii) provide that the utility's payment
4542	4542	11 obligation in respect of the quantity of
4543	4543	12 electricity determined pursuant to the preceding
4544	4544	13 clause (i) shall be limited to an amount equal to
4545	4545	14 (1) the difference between the contract price
4546	4546	15 determined pursuant to subparagraph (A) of
4547	4547	16 paragraph (3) of this subsection (d) and the
4548	4548	17 day-ahead price for electricity delivered to the
4549	4549	18 regional transmission organization market of the
4550	4550	19 utility that is party to such sourcing agreement
4551	4551	20 (or any successor delivery point at which such
4552	4552	21 utility's supply obligations are financially
4553	4553	22 settled on an hourly basis) (the "reference
4554	4554	23 price") on the day preceding the day on which the
4555	4555	24 electricity is delivered to the initial clean coal
4556	4556	25 facility busbar, multiplied by (2) the quantity of
4557	4557	26 electricity determined pursuant to the preceding
4558	4558
4559	4559
4560	4560
4561	4561
4562	4562
4563	4563	HB3258 - 126 - LRB104 06526 AAS 16562 b
4564	4564
4565	4565
4566	4566	HB3258- 127 -LRB104 06526 AAS 16562 b HB3258 - 127 - LRB104 06526 AAS 16562 b
4567	4567	HB3258 - 127 - LRB104 06526 AAS 16562 b
4568	4568	1 clause (i); and
4569	4569	2 (iii) not require the utility to take physical
4570	4570	3 delivery of the electricity produced by the
4571	4571	4 facility;
4572	4572	5 (D) general provisions, which shall:
4573	4573	6 (i) specify a term of no more than 30 years,
4574	4574	7 commencing on the commercial operation date of the
4575	4575	8 facility;
4576	4576	9 (ii) provide that utilities shall maintain
4577	4577	10 adequate records documenting purchases under the
4578	4578	11 sourcing agreements entered into to comply with
4579	4579	12 this subsection (d) and shall file an accounting
4580	4580	13 with the load forecast that must be filed with the
4581	4581	14 Agency by July 15 of each year, in accordance with
4582	4582	15 subsection (d) of Section 16-111.5 of the Public
4583	4583	16 Utilities Act;
4584	4584	17 (iii) provide that all costs associated with
4585	4585	18 the initial clean coal facility will be
4586	4586	19 periodically reported to the Federal Energy
4587	4587	20 Regulatory Commission and to purchasers in
4588	4588	21 accordance with applicable laws governing
4589	4589	22 cost-based wholesale power contracts;
4590	4590	23 (iv) permit the Illinois Power Agency to
4591	4591	24 assume ownership of the initial clean coal
4592	4592	25 facility, without monetary consideration and
4593	4593	26 otherwise on reasonable terms acceptable to the
4594	4594
4595	4595
4596	4596
4597	4597
4598	4598
4599	4599	HB3258 - 127 - LRB104 06526 AAS 16562 b
4600	4600
4601	4601
4602	4602	HB3258- 128 -LRB104 06526 AAS 16562 b HB3258 - 128 - LRB104 06526 AAS 16562 b
4603	4603	HB3258 - 128 - LRB104 06526 AAS 16562 b
4604	4604	1 Agency, if the Agency so requests no less than 3
4605	4605	2 years prior to the end of the stated contract
4606	4606	3 term;
4607	4607	4 (v) require the owner of the initial clean
4608	4608	5 coal facility to provide documentation to the
4609	4609	6 Commission each year, starting in the facility's
4610	4610	7 first year of commercial operation, accurately
4611	4611	8 reporting the quantity of carbon emissions from
4612	4612	9 the facility that have been captured and
4613	4613	10 sequestered and report any quantities of carbon
4614	4614	11 released from the site or sites at which carbon
4615	4615	12 emissions were sequestered in prior years, based
4616	4616	13 on continuous monitoring of such sites. If, in any
4617	4617	14 year after the first year of commercial operation,
4618	4618	15 the owner of the facility fails to demonstrate
4619	4619	16 that the initial clean coal facility captured and
4620	4620	17 sequestered at least 50% of the total carbon
4621	4621	18 emissions that the facility would otherwise emit
4622	4622	19 or that sequestration of emissions from prior
4623	4623	20 years has failed, resulting in the release of
4624	4624	21 carbon dioxide into the atmosphere, the owner of
4625	4625	22 the facility must offset excess emissions. Any
4626	4626	23 such carbon offsets must be permanent, additional,
4627	4627	24 verifiable, real, located within the State of
4628	4628	25 Illinois, and legally and practicably enforceable.
4629	4629	26 The cost of such offsets for the facility that are
4630	4630
4631	4631
4632	4632
4633	4633
4634	4634
4635	4635	HB3258 - 128 - LRB104 06526 AAS 16562 b
4636	4636
4637	4637
4638	4638	HB3258- 129 -LRB104 06526 AAS 16562 b HB3258 - 129 - LRB104 06526 AAS 16562 b
4639	4639	HB3258 - 129 - LRB104 06526 AAS 16562 b
4640	4640	1 not recoverable shall not exceed $15 million in
4641	4641	2 any given year. No costs of any such purchases of
4642	4642	3 carbon offsets may be recovered from a utility or
4643	4643	4 its customers. All carbon offsets purchased for
4644	4644	5 this purpose and any carbon emission credits
4645	4645	6 associated with sequestration of carbon from the
4646	4646	7 facility must be permanently retired. The initial
4647	4647	8 clean coal facility shall not forfeit its
4648	4648	9 designation as a clean coal facility if the
4649	4649	10 facility fails to fully comply with the applicable
4650	4650	11 carbon sequestration requirements in any given
4651	4651	12 year, provided the requisite offsets are
4652	4652	13 purchased. However, the Attorney General, on
4653	4653	14 behalf of the People of the State of Illinois, may
4654	4654	15 specifically enforce the facility's sequestration
4655	4655	16 requirement and the other terms of this contract
4656	4656	17 provision. Compliance with the sequestration
4657	4657	18 requirements and offset purchase requirements
4658	4658	19 specified in paragraph (3) of this subsection (d)
4659	4659	20 shall be reviewed annually by an independent
4660	4660	21 expert retained by the owner of the initial clean
4661	4661	22 coal facility, with the advance written approval
4662	4662	23 of the Attorney General. The Commission may, in
4663	4663	24 the course of the review specified in item (vii),
4664	4664	25 reduce the allowable return on equity for the
4665	4665	26 facility if the facility willfully fails to comply
4666	4666
4667	4667
4668	4668
4669	4669
4670	4670
4671	4671	HB3258 - 129 - LRB104 06526 AAS 16562 b
4672	4672
4673	4673
4674	4674	HB3258- 130 -LRB104 06526 AAS 16562 b HB3258 - 130 - LRB104 06526 AAS 16562 b
4675	4675	HB3258 - 130 - LRB104 06526 AAS 16562 b
4676	4676	1 with the carbon capture and sequestration
4677	4677	2 requirements set forth in this item (v);
4678	4678	3 (vi) include limits on, and accordingly
4679	4679	4 provide for modification of, the amount the
4680	4680	5 utility is required to source under the sourcing
4681	4681	6 agreement consistent with paragraph (2) of this
4682	4682	7 subsection (d);
4683	4683	8 (vii) require Commission review: (1) to
4684	4684	9 determine the justness, reasonableness, and
4685	4685	10 prudence of the inputs to the formula referenced
4686	4686	11 in subparagraphs (A)(i) through (A)(iii) of
4687	4687	12 paragraph (3) of this subsection (d), prior to an
4688	4688	13 adjustment in those inputs including, without
4689	4689	14 limitation, the capital structure and return on
4690	4690	15 equity, fuel costs, and other operations and
4691	4691	16 maintenance costs and (2) to approve the costs to
4692	4692	17 be passed through to customers under the sourcing
4693	4693	18 agreement by which the utility satisfies its
4694	4694	19 statutory obligations. Commission review shall
4695	4695	20 occur no less than every 3 years, regardless of
4696	4696	21 whether any adjustments have been proposed, and
4697	4697	22 shall be completed within 9 months;
4698	4698	23 (viii) limit the utility's obligation to such
4699	4699	24 amount as the utility is allowed to recover
4700	4700	25 through tariffs filed with the Commission,
4701	4701	26 provided that neither the clean coal facility nor
4702	4702
4703	4703
4704	4704
4705	4705
4706	4706
4707	4707	HB3258 - 130 - LRB104 06526 AAS 16562 b
4708	4708
4709	4709
4710	4710	HB3258- 131 -LRB104 06526 AAS 16562 b HB3258 - 131 - LRB104 06526 AAS 16562 b
4711	4711	HB3258 - 131 - LRB104 06526 AAS 16562 b
4712	4712	1 the utility waives any right to assert federal
4713	4713	2 pre-emption or any other argument in response to a
4714	4714	3 purported disallowance of recovery costs;
4715	4715	4 (ix) limit the utility's or alternative retail
4716	4716	5 electric supplier's obligation to incur any
4717	4717	6 liability until such time as the facility is in
4718	4718	7 commercial operation and generating power and
4719	4719	8 energy and such power and energy is being
4720	4720	9 delivered to the facility busbar;
4721	4721	10 (x) provide that the owner or owners of the
4722	4722	11 initial clean coal facility, which is the
4723	4723	12 counterparty to such sourcing agreement, shall
4724	4724	13 have the right from time to time to elect whether
4725	4725	14 the obligations of the utility party thereto shall
4726	4726	15 be governed by the power purchase provisions or
4727	4727	16 the contract for differences provisions;
4728	4728	17 (xi) append documentation showing that the
4729	4729	18 formula rate and contract, insofar as they relate
4730	4730	19 to the power purchase provisions, have been
4731	4731	20 approved by the Federal Energy Regulatory
4732	4732	21 Commission pursuant to Section 205 of the Federal
4733	4733	22 Power Act;
4734	4734	23 (xii) provide that any changes to the terms of
4735	4735	24 the contract, insofar as such changes relate to
4736	4736	25 the power purchase provisions, are subject to
4737	4737	26 review under the public interest standard applied
4738	4738
4739	4739
4740	4740
4741	4741
4742	4742
4743	4743	HB3258 - 131 - LRB104 06526 AAS 16562 b
4744	4744
4745	4745
4746	4746	HB3258- 132 -LRB104 06526 AAS 16562 b HB3258 - 132 - LRB104 06526 AAS 16562 b
4747	4747	HB3258 - 132 - LRB104 06526 AAS 16562 b
4748	4748	1 by the Federal Energy Regulatory Commission
4749	4749	2 pursuant to Sections 205 and 206 of the Federal
4750	4750	3 Power Act; and
4751	4751	4 (xiii) conform with customary lender
4752	4752	5 requirements in power purchase agreements used as
4753	4753	6 the basis for financing non-utility generators.
4754	4754	7 (4) Effective date of sourcing agreements with the
4755	4755	8 initial clean coal facility. Any proposed sourcing
4756	4756	9 agreement with the initial clean coal facility shall not
4757	4757	10 become effective unless the following reports are prepared
4758	4758	11 and submitted and authorizations and approvals obtained:
4759	4759	12 (i) Facility cost report. The owner of the initial
4760	4760	13 clean coal facility shall submit to the Commission,
4761	4761	14 the Agency, and the General Assembly a front-end
4762	4762	15 engineering and design study, a facility cost report,
4763	4763	16 method of financing (including but not limited to
4764	4764	17 structure and associated costs), and an operating and
4765	4765	18 maintenance cost quote for the facility (collectively
4766	4766	19 "facility cost report"), which shall be prepared in
4767	4767	20 accordance with the requirements of this paragraph (4)
4768	4768	21 of subsection (d) of this Section, and shall provide
4769	4769	22 the Commission and the Agency access to the work
4770	4770	23 papers, relied upon documents, and any other backup
4771	4771	24 documentation related to the facility cost report.
4772	4772	25 (ii) Commission report. Within 6 months following
4773	4773	26 receipt of the facility cost report, the Commission,
4774	4774
4775	4775
4776	4776
4777	4777
4778	4778
4779	4779	HB3258 - 132 - LRB104 06526 AAS 16562 b
4780	4780
4781	4781
4782	4782	HB3258- 133 -LRB104 06526 AAS 16562 b HB3258 - 133 - LRB104 06526 AAS 16562 b
4783	4783	HB3258 - 133 - LRB104 06526 AAS 16562 b
4784	4784	1 in consultation with the Agency, shall submit a report
4785	4785	2 to the General Assembly setting forth its analysis of
4786	4786	3 the facility cost report. Such report shall include,
4787	4787	4 but not be limited to, a comparison of the costs
4788	4788	5 associated with electricity generated by the initial
4789	4789	6 clean coal facility to the costs associated with
4790	4790	7 electricity generated by other types of generation
4791	4791	8 facilities, an analysis of the rate impacts on
4792	4792	9 residential and small business customers over the life
4793	4793	10 of the sourcing agreements, and an analysis of the
4794	4794	11 likelihood that the initial clean coal facility will
4795	4795	12 commence commercial operation by and be delivering
4796	4796	13 power to the facility's busbar by 2016. To assist in
4797	4797	14 the preparation of its report, the Commission, in
4798	4798	15 consultation with the Agency, may hire one or more
4799	4799	16 experts or consultants, the costs of which shall be
4800	4800	17 paid for by the owner of the initial clean coal
4801	4801	18 facility. The Commission and Agency may begin the
4802	4802	19 process of selecting such experts or consultants prior
4803	4803	20 to receipt of the facility cost report.
4804	4804	21 (iii) General Assembly approval. The proposed
4805	4805	22 sourcing agreements shall not take effect unless,
4806	4806	23 based on the facility cost report and the Commission's
4807	4807	24 report, the General Assembly enacts authorizing
4808	4808	25 legislation approving (A) the projected price, stated
4809	4809	26 in cents per kilowatthour, to be charged for
4810	4810
4811	4811
4812	4812
4813	4813
4814	4814
4815	4815	HB3258 - 133 - LRB104 06526 AAS 16562 b
4816	4816
4817	4817
4818	4818	HB3258- 134 -LRB104 06526 AAS 16562 b HB3258 - 134 - LRB104 06526 AAS 16562 b
4819	4819	HB3258 - 134 - LRB104 06526 AAS 16562 b
4820	4820	1 electricity generated by the initial clean coal
4821	4821	2 facility, (B) the projected impact on residential and
4822	4822	3 small business customers' bills over the life of the
4823	4823	4 sourcing agreements, and (C) the maximum allowable
4824	4824	5 return on equity for the project; and
4825	4825	6 (iv) Commission review. If the General Assembly
4826	4826	7 enacts authorizing legislation pursuant to
4827	4827	8 subparagraph (iii) approving a sourcing agreement, the
4828	4828	9 Commission shall, within 90 days of such enactment,
4829	4829	10 complete a review of such sourcing agreement. During
4830	4830	11 such time period, the Commission shall implement any
4831	4831	12 directive of the General Assembly, resolve any
4832	4832	13 disputes between the parties to the sourcing agreement
4833	4833	14 concerning the terms of such agreement, approve the
4834	4834	15 form of such agreement, and issue an order finding
4835	4835	16 that the sourcing agreement is prudent and reasonable.
4836	4836	17 The facility cost report shall be prepared as follows:
4837	4837	18 (A) The facility cost report shall be prepared by
4838	4838	19 duly licensed engineering and construction firms
4839	4839	20 detailing the estimated capital costs payable to one
4840	4840	21 or more contractors or suppliers for the engineering,
4841	4841	22 procurement and construction of the components
4842	4842	23 comprising the initial clean coal facility and the
4843	4843	24 estimated costs of operation and maintenance of the
4844	4844	25 facility. The facility cost report shall include:
4845	4845	26 (i) an estimate of the capital cost of the
4846	4846
4847	4847
4848	4848
4849	4849
4850	4850
4851	4851	HB3258 - 134 - LRB104 06526 AAS 16562 b
4852	4852
4853	4853
4854	4854	HB3258- 135 -LRB104 06526 AAS 16562 b HB3258 - 135 - LRB104 06526 AAS 16562 b
4855	4855	HB3258 - 135 - LRB104 06526 AAS 16562 b
4856	4856	1 core plant based on one or more front end
4857	4857	2 engineering and design studies for the
4858	4858	3 gasification island and related facilities. The
4859	4859	4 core plant shall include all civil, structural,
4860	4860	5 mechanical, electrical, control, and safety
4861	4861	6 systems.
4862	4862	7 (ii) an estimate of the capital cost of the
4863	4863	8 balance of the plant, including any capital costs
4864	4864	9 associated with sequestration of carbon dioxide
4865	4865	10 emissions and all interconnects and interfaces
4866	4866	11 required to operate the facility, such as
4867	4867	12 transmission of electricity, construction or
4868	4868	13 backfeed power supply, pipelines to transport
4869	4869	14 substitute natural gas or carbon dioxide, potable
4870	4870	15 water supply, natural gas supply, water supply,
4871	4871	16 water discharge, landfill, access roads, and coal
4872	4872	17 delivery.
4873	4873	18 The quoted construction costs shall be expressed
4874	4874	19 in nominal dollars as of the date that the quote is
4875	4875	20 prepared and shall include capitalized financing costs
4876	4876	21 during construction, taxes, insurance, and other
4877	4877	22 owner's costs, and an assumed escalation in materials
4878	4878	23 and labor beyond the date as of which the construction
4879	4879	24 cost quote is expressed.
4880	4880	25 (B) The front end engineering and design study for
4881	4881	26 the gasification island and the cost study for the
4882	4882
4883	4883
4884	4884
4885	4885
4886	4886
4887	4887	HB3258 - 135 - LRB104 06526 AAS 16562 b
4888	4888
4889	4889
4890	4890	HB3258- 136 -LRB104 06526 AAS 16562 b HB3258 - 136 - LRB104 06526 AAS 16562 b
4891	4891	HB3258 - 136 - LRB104 06526 AAS 16562 b
4892	4892	1 balance of plant shall include sufficient design work
4893	4893	2 to permit quantification of major categories of
4894	4894	3 materials, commodities and labor hours, and receipt of
4895	4895	4 quotes from vendors of major equipment required to
4896	4896	5 construct and operate the clean coal facility.
4897	4897	6 (C) The facility cost report shall also include an
4898	4898	7 operating and maintenance cost quote that will provide
4899	4899	8 the estimated cost of delivered fuel, personnel,
4900	4900	9 maintenance contracts, chemicals, catalysts,
4901	4901	10 consumables, spares, and other fixed and variable
4902	4902	11 operations and maintenance costs. The delivered fuel
4903	4903	12 cost estimate will be provided by a recognized third
4904	4904	13 party expert or experts in the fuel and transportation
4905	4905	14 industries. The balance of the operating and
4906	4906	15 maintenance cost quote, excluding delivered fuel
4907	4907	16 costs, will be developed based on the inputs provided
4908	4908	17 by duly licensed engineering and construction firms
4909	4909	18 performing the construction cost quote, potential
4910	4910	19 vendors under long-term service agreements and plant
4911	4911	20 operating agreements, or recognized third party plant
4912	4912	21 operator or operators.
4913	4913	22 The operating and maintenance cost quote
4914	4914	23 (including the cost of the front end engineering and
4915	4915	24 design study) shall be expressed in nominal dollars as
4916	4916	25 of the date that the quote is prepared and shall
4917	4917	26 include taxes, insurance, and other owner's costs, and
4918	4918
4919	4919
4920	4920
4921	4921
4922	4922
4923	4923	HB3258 - 136 - LRB104 06526 AAS 16562 b
4924	4924
4925	4925
4926	4926	HB3258- 137 -LRB104 06526 AAS 16562 b HB3258 - 137 - LRB104 06526 AAS 16562 b
4927	4927	HB3258 - 137 - LRB104 06526 AAS 16562 b
4928	4928	1 an assumed escalation in materials and labor beyond
4929	4929	2 the date as of which the operating and maintenance
4930	4930	3 cost quote is expressed.
4931	4931	4 (D) The facility cost report shall also include an
4932	4932	5 analysis of the initial clean coal facility's ability
4933	4933	6 to deliver power and energy into the applicable
4934	4934	7 regional transmission organization markets and an
4935	4935	8 analysis of the expected capacity factor for the
4936	4936	9 initial clean coal facility.
4937	4937	10 (E) Amounts paid to third parties unrelated to the
4938	4938	11 owner or owners of the initial clean coal facility to
4939	4939	12 prepare the core plant construction cost quote,
4940	4940	13 including the front end engineering and design study,
4941	4941	14 and the operating and maintenance cost quote will be
4942	4942	15 reimbursed through Coal Development Bonds.
4943	4943	16 (5) Re-powering and retrofitting coal-fired power
4944	4944	17 plants previously owned by Illinois utilities to qualify
4945	4945	18 as clean coal facilities. During the 2009 procurement
4946	4946	19 planning process and thereafter, the Agency and the
4947	4947	20 Commission shall consider sourcing agreements covering
4948	4948	21 electricity generated by power plants that were previously
4949	4949	22 owned by Illinois utilities and that have been or will be
4950	4950	23 converted into clean coal facilities, as defined by
4951	4951	24 Section 1-10 of this Act. Pursuant to such procurement
4952	4952	25 planning process, the owners of such facilities may
4953	4953	26 propose to the Agency sourcing agreements with utilities
4954	4954
4955	4955
4956	4956
4957	4957
4958	4958
4959	4959	HB3258 - 137 - LRB104 06526 AAS 16562 b
4960	4960
4961	4961
4962	4962	HB3258- 138 -LRB104 06526 AAS 16562 b HB3258 - 138 - LRB104 06526 AAS 16562 b
4963	4963	HB3258 - 138 - LRB104 06526 AAS 16562 b
4964	4964	1 and alternative retail electric suppliers required to
4965	4965	2 comply with subsection (d) of this Section and item (5) of
4966	4966	3 subsection (d) of Section 16-115 of the Public Utilities
4967	4967	4 Act, covering electricity generated by such facilities. In
4968	4968	5 the case of sourcing agreements that are power purchase
4969	4969	6 agreements, the contract price for electricity sales shall
4970	4970	7 be established on a cost of service basis. In the case of
4971	4971	8 sourcing agreements that are contracts for differences,
4972	4972	9 the contract price from which the reference price is
4973	4973	10 subtracted shall be established on a cost of service
4974	4974	11 basis. The Agency and the Commission may approve any such
4975	4975	12 utility sourcing agreements that do not exceed cost-based
4976	4976	13 benchmarks developed by the procurement administrator, in
4977	4977	14 consultation with the Commission staff, Agency staff and
4978	4978	15 the procurement monitor, subject to Commission review and
4979	4979	16 approval. The Commission shall have authority to inspect
4980	4980	17 all books and records associated with these clean coal
4981	4981	18 facilities during the term of any such contract.
4982	4982	19 (6) Costs incurred under this subsection (d) or
4983	4983	20 pursuant to a contract entered into under this subsection
4984	4984	21 (d) shall be deemed prudently incurred and reasonable in
4985	4985	22 amount and the electric utility shall be entitled to full
4986	4986	23 cost recovery pursuant to the tariffs filed with the
4987	4987	24 Commission.
4988	4988	25 (d-5) Zero emission standard.
4989	4989	26 (1) Beginning with the delivery year commencing on
4990	4990
4991	4991
4992	4992
4993	4993
4994	4994
4995	4995	HB3258 - 138 - LRB104 06526 AAS 16562 b
4996	4996
4997	4997
4998	4998	HB3258- 139 -LRB104 06526 AAS 16562 b HB3258 - 139 - LRB104 06526 AAS 16562 b
4999	4999	HB3258 - 139 - LRB104 06526 AAS 16562 b
5000	5000	1 June 1, 2017, the Agency shall, for electric utilities
5001	5001	2 that serve at least 100,000 retail customers in this
5002	5002	3 State, procure contracts with zero emission facilities
5003	5003	4 that are reasonably capable of generating cost-effective
5004	5004	5 zero emission credits in an amount approximately equal to
5005	5005	6 16% of the actual amount of electricity delivered by each
5006	5006	7 electric utility to retail customers in the State during
5007	5007	8 calendar year 2014. For an electric utility serving fewer
5008	5008	9 than 100,000 retail customers in this State that
5009	5009	10 requested, under Section 16-111.5 of the Public Utilities
5010	5010	11 Act, that the Agency procure power and energy for all or a
5011	5011	12 portion of the utility's Illinois load for the delivery
5012	5012	13 year commencing June 1, 2016, the Agency shall procure
5013	5013	14 contracts with zero emission facilities that are
5014	5014	15 reasonably capable of generating cost-effective zero
5015	5015	16 emission credits in an amount approximately equal to 16%
5016	5016	17 of the portion of power and energy to be procured by the
5017	5017	18 Agency for the utility. The duration of the contracts
5018	5018	19 procured under this subsection (d-5) shall be for a term
5019	5019	20 of 10 years ending May 31, 2027. The quantity of zero
5020	5020	21 emission credits to be procured under the contracts shall
5021	5021	22 be all of the zero emission credits generated by the zero
5022	5022	23 emission facility in each delivery year; however, if the
5023	5023	24 zero emission facility is owned by more than one entity,
5024	5024	25 then the quantity of zero emission credits to be procured
5025	5025	26 under the contracts shall be the amount of zero emission
5026	5026
5027	5027
5028	5028
5029	5029
5030	5030
5031	5031	HB3258 - 139 - LRB104 06526 AAS 16562 b
5032	5032
5033	5033
5034	5034	HB3258- 140 -LRB104 06526 AAS 16562 b HB3258 - 140 - LRB104 06526 AAS 16562 b
5035	5035	HB3258 - 140 - LRB104 06526 AAS 16562 b
5036	5036	1 credits that are generated from the portion of the zero
5037	5037	2 emission facility that is owned by the winning supplier.
5038	5038	3 The 16% value identified in this paragraph (1) is the
5039	5039	4 average of the percentage targets in subparagraph (B) of
5040	5040	5 paragraph (1) of subsection (c) of this Section for the 5
5041	5041	6 delivery years beginning June 1, 2017.
5042	5042	7 The procurement process shall be subject to the
5043	5043	8 following provisions:
5044	5044	9 (A) Those zero emission facilities that intend to
5045	5045	10 participate in the procurement shall submit to the
5046	5046	11 Agency the following eligibility information for each
5047	5047	12 zero emission facility on or before the date
5048	5048	13 established by the Agency:
5049	5049	14 (i) the in-service date and remaining useful
5050	5050	15 life of the zero emission facility;
5051	5051	16 (ii) the amount of power generated annually
5052	5052	17 for each of the years 2005 through 2015, and the
5053	5053	18 projected zero emission credits to be generated
5054	5054	19 over the remaining useful life of the zero
5055	5055	20 emission facility, which shall be used to
5056	5056	21 determine the capability of each facility;
5057	5057	22 (iii) the annual zero emission facility cost
5058	5058	23 projections, expressed on a per megawatthour
5059	5059	24 basis, over the next 6 delivery years, which shall
5060	5060	25 include the following: operation and maintenance
5061	5061	26 expenses; fully allocated overhead costs, which
5062	5062
5063	5063
5064	5064
5065	5065
5066	5066
5067	5067	HB3258 - 140 - LRB104 06526 AAS 16562 b
5068	5068
5069	5069
5070	5070	HB3258- 141 -LRB104 06526 AAS 16562 b HB3258 - 141 - LRB104 06526 AAS 16562 b
5071	5071	HB3258 - 141 - LRB104 06526 AAS 16562 b
5072	5072	1 shall be allocated using the methodology developed
5073	5073	2 by the Institute for Nuclear Power Operations;
5074	5074	3 fuel expenditures; non-fuel capital expenditures;
5075	5075	4 spent fuel expenditures; a return on working
5076	5076	5 capital; the cost of operational and market risks
5077	5077	6 that could be avoided by ceasing operation; and
5078	5078	7 any other costs necessary for continued
5079	5079	8 operations, provided that "necessary" means, for
5080	5080	9 purposes of this item (iii), that the costs could
5081	5081	10 reasonably be avoided only by ceasing operations
5082	5082	11 of the zero emission facility; and
5083	5083	12 (iv) a commitment to continue operating, for
5084	5084	13 the duration of the contract or contracts executed
5085	5085	14 under the procurement held under this subsection
5086	5086	15 (d-5), the zero emission facility that produces
5087	5087	16 the zero emission credits to be procured in the
5088	5088	17 procurement.
5089	5089	18 The information described in item (iii) of this
5090	5090	19 subparagraph (A) may be submitted on a confidential
5091	5091	20 basis and shall be treated and maintained by the
5092	5092	21 Agency, the procurement administrator, and the
5093	5093	22 Commission as confidential and proprietary and exempt
5094	5094	23 from disclosure under subparagraphs (a) and (g) of
5095	5095	24 paragraph (1) of Section 7 of the Freedom of
5096	5096	25 Information Act. The Office of Attorney General shall
5097	5097	26 have access to, and maintain the confidentiality of,
5098	5098
5099	5099
5100	5100
5101	5101
5102	5102
5103	5103	HB3258 - 141 - LRB104 06526 AAS 16562 b
5104	5104
5105	5105
5106	5106	HB3258- 142 -LRB104 06526 AAS 16562 b HB3258 - 142 - LRB104 06526 AAS 16562 b
5107	5107	HB3258 - 142 - LRB104 06526 AAS 16562 b
5108	5108	1 such information pursuant to Section 6.5 of the
5109	5109	2 Attorney General Act.
5110	5110	3 (B) The price for each zero emission credit
5111	5111	4 procured under this subsection (d-5) for each delivery
5112	5112	5 year shall be in an amount that equals the Social Cost
5113	5113	6 of Carbon, expressed on a price per megawatthour
5114	5114	7 basis. However, to ensure that the procurement remains
5115	5115	8 affordable to retail customers in this State if
5116	5116	9 electricity prices increase, the price in an
5117	5117	10 applicable delivery year shall be reduced below the
5118	5118	11 Social Cost of Carbon by the amount ("Price
5119	5119	12 Adjustment") by which the market price index for the
5120	5120	13 applicable delivery year exceeds the baseline market
5121	5121	14 price index for the consecutive 12-month period ending
5122	5122	15 May 31, 2016. If the Price Adjustment is greater than
5123	5123	16 or equal to the Social Cost of Carbon in an applicable
5124	5124	17 delivery year, then no payments shall be due in that
5125	5125	18 delivery year. The components of this calculation are
5126	5126	19 defined as follows:
5127	5127	20 (i) Social Cost of Carbon: The Social Cost of
5128	5128	21 Carbon is $16.50 per megawatthour, which is based
5129	5129	22 on the U.S. Interagency Working Group on Social
5130	5130	23 Cost of Carbon's price in the August 2016
5131	5131	24 Technical Update using a 3% discount rate,
5132	5132	25 adjusted for inflation for each year of the
5133	5133	26 program. Beginning with the delivery year
5134	5134
5135	5135
5136	5136
5137	5137
5138	5138
5139	5139	HB3258 - 142 - LRB104 06526 AAS 16562 b
5140	5140
5141	5141
5142	5142	HB3258- 143 -LRB104 06526 AAS 16562 b HB3258 - 143 - LRB104 06526 AAS 16562 b
5143	5143	HB3258 - 143 - LRB104 06526 AAS 16562 b
5144	5144	1 commencing June 1, 2023, the price per
5145	5145	2 megawatthour shall increase by $1 per
5146	5146	3 megawatthour, and continue to increase by an
5147	5147	4 additional $1 per megawatthour each delivery year
5148	5148	5 thereafter.
5149	5149	6 (ii) Baseline market price index: The baseline
5150	5150	7 market price index for the consecutive 12-month
5151	5151	8 period ending May 31, 2016 is $31.40 per
5152	5152	9 megawatthour, which is based on the sum of (aa)
5153	5153	10 the average day-ahead energy price across all
5154	5154	11 hours of such 12-month period at the PJM
5155	5155	12 Interconnection LLC Northern Illinois Hub, (bb)
5156	5156	13 50% multiplied by the Base Residual Auction, or
5157	5157	14 its successor, capacity price for the rest of the
5158	5158	15 RTO zone group determined by PJM Interconnection
5159	5159	16 LLC, divided by 24 hours per day, and (cc) 50%
5160	5160	17 multiplied by the Planning Resource Auction, or
5161	5161	18 its successor, capacity price for Zone 4
5162	5162	19 determined by the Midcontinent Independent System
5163	5163	20 Operator, Inc., divided by 24 hours per day.
5164	5164	21 (iii) Market price index: The market price
5165	5165	22 index for a delivery year shall be the sum of
5166	5166	23 projected energy prices and projected capacity
5167	5167	24 prices determined as follows:
5168	5168	25 (aa) Projected energy prices: the
5169	5169	26 projected energy prices for the applicable
5170	5170
5171	5171
5172	5172
5173	5173
5174	5174
5175	5175	HB3258 - 143 - LRB104 06526 AAS 16562 b
5176	5176
5177	5177
5178	5178	HB3258- 144 -LRB104 06526 AAS 16562 b HB3258 - 144 - LRB104 06526 AAS 16562 b
5179	5179	HB3258 - 144 - LRB104 06526 AAS 16562 b
5180	5180	1 delivery year shall be calculated once for the
5181	5181	2 year using the forward market price for the
5182	5182	3 PJM Interconnection, LLC Northern Illinois
5183	5183	4 Hub. The forward market price shall be
5184	5184	5 calculated as follows: the energy forward
5185	5185	6 prices for each month of the applicable
5186	5186	7 delivery year averaged for each trade date
5187	5187	8 during the calendar year immediately preceding
5188	5188	9 that delivery year to produce a single energy
5189	5189	10 forward price for the delivery year. The
5190	5190	11 forward market price calculation shall use
5191	5191	12 data published by the Intercontinental
5192	5192	13 Exchange, or its successor.
5193	5193	14 (bb) Projected capacity prices:
5194	5194	15 (I) For the delivery years commencing
5195	5195	16 June 1, 2017, June 1, 2018, and June 1,
5196	5196	17 2019, the projected capacity price shall
5197	5197	18 be equal to the sum of (1) 50% multiplied
5198	5198	19 by the Base Residual Auction, or its
5199	5199	20 successor, price for the rest of the RTO
5200	5200	21 zone group as determined by PJM
5201	5201	22 Interconnection LLC, divided by 24 hours
5202	5202	23 per day and, (2) 50% multiplied by the
5203	5203	24 resource auction price determined in the
5204	5204	25 resource auction administered by the
5205	5205	26 Midcontinent Independent System Operator,
5206	5206
5207	5207
5208	5208
5209	5209
5210	5210
5211	5211	HB3258 - 144 - LRB104 06526 AAS 16562 b
5212	5212
5213	5213
5214	5214	HB3258- 145 -LRB104 06526 AAS 16562 b HB3258 - 145 - LRB104 06526 AAS 16562 b
5215	5215	HB3258 - 145 - LRB104 06526 AAS 16562 b
5216	5216	1 Inc., in which the largest percentage of
5217	5217	2 load cleared for Local Resource Zone 4,
5218	5218	3 divided by 24 hours per day, and where
5219	5219	4 such price is determined by the
5220	5220	5 Midcontinent Independent System Operator,
5221	5221	6 Inc.
5222	5222	7 (II) For the delivery year commencing
5223	5223	8 June 1, 2020, and each year thereafter,
5224	5224	9 the projected capacity price shall be
5225	5225	10 equal to the sum of (1) 50% multiplied by
5226	5226	11 the Base Residual Auction, or its
5227	5227	12 successor, price for the ComEd zone as
5228	5228	13 determined by PJM Interconnection LLC,
5229	5229	14 divided by 24 hours per day, and (2) 50%
5230	5230	15 multiplied by the resource auction price
5231	5231	16 determined in the resource auction
5232	5232	17 administered by the Midcontinent
5233	5233	18 Independent System Operator, Inc., in
5234	5234	19 which the largest percentage of load
5235	5235	20 cleared for Local Resource Zone 4, divided
5236	5236	21 by 24 hours per day, and where such price
5237	5237	22 is determined by the Midcontinent
5238	5238	23 Independent System Operator, Inc.
5239	5239	24 For purposes of this subsection (d-5):
5240	5240	25 "Rest of the RTO" and "ComEd Zone" shall have
5241	5241	26 the meaning ascribed to them by PJM
5242	5242
5243	5243
5244	5244
5245	5245
5246	5246
5247	5247	HB3258 - 145 - LRB104 06526 AAS 16562 b
5248	5248
5249	5249
5250	5250	HB3258- 146 -LRB104 06526 AAS 16562 b HB3258 - 146 - LRB104 06526 AAS 16562 b
5251	5251	HB3258 - 146 - LRB104 06526 AAS 16562 b
5252	5252	1 Interconnection, LLC.
5253	5253	2 "RTO" means regional transmission
5254	5254	3 organization.
5255	5255	4 (C) No later than 45 days after June 1, 2017 (the
5256	5256	5 effective date of Public Act 99-906), the Agency shall
5257	5257	6 publish its proposed zero emission standard
5258	5258	7 procurement plan. The plan shall be consistent with
5259	5259	8 the provisions of this paragraph (1) and shall provide
5260	5260	9 that winning bids shall be selected based on public
5261	5261	10 interest criteria that include, but are not limited
5262	5262	11 to, minimizing carbon dioxide emissions that result
5263	5263	12 from electricity consumed in Illinois and minimizing
5264	5264	13 sulfur dioxide, nitrogen oxide, and particulate matter
5265	5265	14 emissions that adversely affect the citizens of this
5266	5266	15 State. In particular, the selection of winning bids
5267	5267	16 shall take into account the incremental environmental
5268	5268	17 benefits resulting from the procurement, such as any
5269	5269	18 existing environmental benefits that are preserved by
5270	5270	19 the procurements held under Public Act 99-906 and
5271	5271	20 would cease to exist if the procurements were not
5272	5272	21 held, including the preservation of zero emission
5273	5273	22 facilities. The plan shall also describe in detail how
5274	5274	23 each public interest factor shall be considered and
5275	5275	24 weighted in the bid selection process to ensure that
5276	5276	25 the public interest criteria are applied to the
5277	5277	26 procurement and given full effect.
5278	5278
5279	5279
5280	5280
5281	5281
5282	5282
5283	5283	HB3258 - 146 - LRB104 06526 AAS 16562 b
5284	5284
5285	5285
5286	5286	HB3258- 147 -LRB104 06526 AAS 16562 b HB3258 - 147 - LRB104 06526 AAS 16562 b
5287	5287	HB3258 - 147 - LRB104 06526 AAS 16562 b
5288	5288	1 For purposes of developing the plan, the Agency
5289	5289	2 shall consider any reports issued by a State agency,
5290	5290	3 board, or commission under House Resolution 1146 of
5291	5291	4 the 98th General Assembly and paragraph (4) of
5292	5292	5 subsection (d) of this Section, as well as publicly
5293	5293	6 available analyses and studies performed by or for
5294	5294	7 regional transmission organizations that serve the
5295	5295	8 State and their independent market monitors.
5296	5296	9 Upon publishing of the zero emission standard
5297	5297	10 procurement plan, copies of the plan shall be posted
5298	5298	11 and made publicly available on the Agency's website.
5299	5299	12 All interested parties shall have 10 days following
5300	5300	13 the date of posting to provide comment to the Agency on
5301	5301	14 the plan. All comments shall be posted to the Agency's
5302	5302	15 website. Following the end of the comment period, but
5303	5303	16 no more than 60 days later than June 1, 2017 (the
5304	5304	17 effective date of Public Act 99-906), the Agency shall
5305	5305	18 revise the plan as necessary based on the comments
5306	5306	19 received and file its zero emission standard
5307	5307	20 procurement plan with the Commission.
5308	5308	21 If the Commission determines that the plan will
5309	5309	22 result in the procurement of cost-effective zero
5310	5310	23 emission credits, then the Commission shall, after
5311	5311	24 notice and hearing, but no later than 45 days after the
5312	5312	25 Agency filed the plan, approve the plan or approve
5313	5313	26 with modification. For purposes of this subsection
5314	5314
5315	5315
5316	5316
5317	5317
5318	5318
5319	5319	HB3258 - 147 - LRB104 06526 AAS 16562 b
5320	5320
5321	5321
5322	5322	HB3258- 148 -LRB104 06526 AAS 16562 b HB3258 - 148 - LRB104 06526 AAS 16562 b
5323	5323	HB3258 - 148 - LRB104 06526 AAS 16562 b
5324	5324	1 (d-5), "cost effective" means the projected costs of
5325	5325	2 procuring zero emission credits from zero emission
5326	5326	3 facilities do not cause the limit stated in paragraph
5327	5327	4 (2) of this subsection to be exceeded.
5328	5328	5 (C-5) As part of the Commission's review and
5329	5329	6 acceptance or rejection of the procurement results,
5330	5330	7 the Commission shall, in its public notice of
5331	5331	8 successful bidders:
5332	5332	9 (i) identify how the winning bids satisfy the
5333	5333	10 public interest criteria described in subparagraph
5334	5334	11 (C) of this paragraph (1) of minimizing carbon
5335	5335	12 dioxide emissions that result from electricity
5336	5336	13 consumed in Illinois and minimizing sulfur
5337	5337	14 dioxide, nitrogen oxide, and particulate matter
5338	5338	15 emissions that adversely affect the citizens of
5339	5339	16 this State;
5340	5340	17 (ii) specifically address how the selection of
5341	5341	18 winning bids takes into account the incremental
5342	5342	19 environmental benefits resulting from the
5343	5343	20 procurement, including any existing environmental
5344	5344	21 benefits that are preserved by the procurements
5345	5345	22 held under Public Act 99-906 and would have ceased
5346	5346	23 to exist if the procurements had not been held,
5347	5347	24 such as the preservation of zero emission
5348	5348	25 facilities;
5349	5349	26 (iii) quantify the environmental benefit of
5350	5350
5351	5351
5352	5352
5353	5353
5354	5354
5355	5355	HB3258 - 148 - LRB104 06526 AAS 16562 b
5356	5356
5357	5357
5358	5358	HB3258- 149 -LRB104 06526 AAS 16562 b HB3258 - 149 - LRB104 06526 AAS 16562 b
5359	5359	HB3258 - 149 - LRB104 06526 AAS 16562 b
5360	5360	1 preserving the resources identified in item (ii)
5361	5361	2 of this subparagraph (C-5), including the
5362	5362	3 following:
5363	5363	4 (aa) the value of avoided greenhouse gas
5364	5364	5 emissions measured as the product of the zero
5365	5365	6 emission facilities' output over the contract
5366	5366	7 term multiplied by the U.S. Environmental
5367	5367	8 Protection Agency eGrid subregion carbon
5368	5368	9 dioxide emission rate and the U.S. Interagency
5369	5369	10 Working Group on Social Cost of Carbon's price
5370	5370	11 in the August 2016 Technical Update using a 3%
5371	5371	12 discount rate, adjusted for inflation for each
5372	5372	13 delivery year; and
5373	5373	14 (bb) the costs of replacement with other
5374	5374	15 zero carbon dioxide resources, including wind
5375	5375	16 and photovoltaic, based upon the simple
5376	5376	17 average of the following:
5377	5377	18 (I) the price, or if there is more
5378	5378	19 than one price, the average of the prices,
5379	5379	20 paid for renewable energy credits from new
5380	5380	21 utility-scale wind projects in the
5381	5381	22 procurement events specified in item (i)
5382	5382	23 of subparagraph (G) of paragraph (1) of
5383	5383	24 subsection (c) of this Section; and
5384	5384	25 (II) the price, or if there is more
5385	5385	26 than one price, the average of the prices,
5386	5386
5387	5387
5388	5388
5389	5389
5390	5390
5391	5391	HB3258 - 149 - LRB104 06526 AAS 16562 b
5392	5392
5393	5393
5394	5394	HB3258- 150 -LRB104 06526 AAS 16562 b HB3258 - 150 - LRB104 06526 AAS 16562 b
5395	5395	HB3258 - 150 - LRB104 06526 AAS 16562 b
5396	5396	1 paid for renewable energy credits from new
5397	5397	2 utility-scale solar projects and
5398	5398	3 brownfield site photovoltaic projects in
5399	5399	4 the procurement events specified in item
5400	5400	5 (ii) of subparagraph (G) of paragraph (1)
5401	5401	6 of subsection (c) of this Section and,
5402	5402	7 after January 1, 2015, renewable energy
5403	5403	8 credits from photovoltaic distributed
5404	5404	9 generation projects in procurement events
5405	5405	10 held under subsection (c) of this Section.
5406	5406	11 Each utility shall enter into binding contractual
5407	5407	12 arrangements with the winning suppliers.
5408	5408	13 The procurement described in this subsection
5409	5409	14 (d-5), including, but not limited to, the execution of
5410	5410	15 all contracts procured, shall be completed no later
5411	5411	16 than May 10, 2017. Based on the effective date of
5412	5412	17 Public Act 99-906, the Agency and Commission may, as
5413	5413	18 appropriate, modify the various dates and timelines
5414	5414	19 under this subparagraph and subparagraphs (C) and (D)
5415	5415	20 of this paragraph (1). The procurement and plan
5416	5416	21 approval processes required by this subsection (d-5)
5417	5417	22 shall be conducted in conjunction with the procurement
5418	5418	23 and plan approval processes required by subsection (c)
5419	5419	24 of this Section and Section 16-111.5 of the Public
5420	5420	25 Utilities Act, to the extent practicable.
5421	5421	26 Notwithstanding whether a procurement event is
5422	5422
5423	5423
5424	5424
5425	5425
5426	5426
5427	5427	HB3258 - 150 - LRB104 06526 AAS 16562 b
5428	5428
5429	5429
5430	5430	HB3258- 151 -LRB104 06526 AAS 16562 b HB3258 - 151 - LRB104 06526 AAS 16562 b
5431	5431	HB3258 - 151 - LRB104 06526 AAS 16562 b
5432	5432	1 conducted under Section 16-111.5 of the Public
5433	5433	2 Utilities Act, the Agency shall immediately initiate a
5434	5434	3 procurement process on June 1, 2017 (the effective
5435	5435	4 date of Public Act 99-906).
5436	5436	5 (D) Following the procurement event described in
5437	5437	6 this paragraph (1) and consistent with subparagraph
5438	5438	7 (B) of this paragraph (1), the Agency shall calculate
5439	5439	8 the payments to be made under each contract for the
5440	5440	9 next delivery year based on the market price index for
5441	5441	10 that delivery year. The Agency shall publish the
5442	5442	11 payment calculations no later than May 25, 2017 and
5443	5443	12 every May 25 thereafter.
5444	5444	13 (E) Notwithstanding the requirements of this
5445	5445	14 subsection (d-5), the contracts executed under this
5446	5446	15 subsection (d-5) shall provide that the zero emission
5447	5447	16 facility may, as applicable, suspend or terminate
5448	5448	17 performance under the contracts in the following
5449	5449	18 instances:
5450	5450	19 (i) A zero emission facility shall be excused
5451	5451	20 from its performance under the contract for any
5452	5452	21 cause beyond the control of the resource,
5453	5453	22 including, but not restricted to, acts of God,
5454	5454	23 flood, drought, earthquake, storm, fire,
5455	5455	24 lightning, epidemic, war, riot, civil disturbance
5456	5456	25 or disobedience, labor dispute, labor or material
5457	5457	26 shortage, sabotage, acts of public enemy,
5458	5458
5459	5459
5460	5460
5461	5461
5462	5462
5463	5463	HB3258 - 151 - LRB104 06526 AAS 16562 b
5464	5464
5465	5465
5466	5466	HB3258- 152 -LRB104 06526 AAS 16562 b HB3258 - 152 - LRB104 06526 AAS 16562 b
5467	5467	HB3258 - 152 - LRB104 06526 AAS 16562 b
5468	5468	1 explosions, orders, regulations or restrictions
5469	5469	2 imposed by governmental, military, or lawfully
5470	5470	3 established civilian authorities, which, in any of
5471	5471	4 the foregoing cases, by exercise of commercially
5472	5472	5 reasonable efforts the zero emission facility
5473	5473	6 could not reasonably have been expected to avoid,
5474	5474	7 and which, by the exercise of commercially
5475	5475	8 reasonable efforts, it has been unable to
5476	5476	9 overcome. In such event, the zero emission
5477	5477	10 facility shall be excused from performance for the
5478	5478	11 duration of the event, including, but not limited
5479	5479	12 to, delivery of zero emission credits, and no
5480	5480	13 payment shall be due to the zero emission facility
5481	5481	14 during the duration of the event.
5482	5482	15 (ii) A zero emission facility shall be
5483	5483	16 permitted to terminate the contract if legislation
5484	5484	17 is enacted into law by the General Assembly that
5485	5485	18 imposes or authorizes a new tax, special
5486	5486	19 assessment, or fee on the generation of
5487	5487	20 electricity, the ownership or leasehold of a
5488	5488	21 generating unit, or the privilege or occupation of
5489	5489	22 such generation, ownership, or leasehold of
5490	5490	23 generation units by a zero emission facility.
5491	5491	24 However, the provisions of this item (ii) do not
5492	5492	25 apply to any generally applicable tax, special
5493	5493	26 assessment or fee, or requirements imposed by
5494	5494
5495	5495
5496	5496
5497	5497
5498	5498
5499	5499	HB3258 - 152 - LRB104 06526 AAS 16562 b
5500	5500
5501	5501
5502	5502	HB3258- 153 -LRB104 06526 AAS 16562 b HB3258 - 153 - LRB104 06526 AAS 16562 b
5503	5503	HB3258 - 153 - LRB104 06526 AAS 16562 b
5504	5504	1 federal law.
5505	5505	2 (iii) A zero emission facility shall be
5506	5506	3 permitted to terminate the contract in the event
5507	5507	4 that the resource requires capital expenditures in
5508	5508	5 excess of $40,000,000 that were neither known nor
5509	5509	6 reasonably foreseeable at the time it executed the
5510	5510	7 contract and that a prudent owner or operator of
5511	5511	8 such resource would not undertake.
5512	5512	9 (iv) A zero emission facility shall be
5513	5513	10 permitted to terminate the contract in the event
5514	5514	11 the Nuclear Regulatory Commission terminates the
5515	5515	12 resource's license.
5516	5516	13 (F) If the zero emission facility elects to
5517	5517	14 terminate a contract under subparagraph (E) of this
5518	5518	15 paragraph (1), then the Commission shall reopen the
5519	5519	16 docket in which the Commission approved the zero
5520	5520	17 emission standard procurement plan under subparagraph
5521	5521	18 (C) of this paragraph (1) and, after notice and
5522	5522	19 hearing, enter an order acknowledging the contract
5523	5523	20 termination election if such termination is consistent
5524	5524	21 with the provisions of this subsection (d-5).
5525	5525	22 (2) For purposes of this subsection (d-5), the amount
5526	5526	23 paid per kilowatthour means the total amount paid for
5527	5527	24 electric service expressed on a per kilowatthour basis.
5528	5528	25 For purposes of this subsection (d-5), the total amount
5529	5529	26 paid for electric service includes, without limitation,
5530	5530
5531	5531
5532	5532
5533	5533
5534	5534
5535	5535	HB3258 - 153 - LRB104 06526 AAS 16562 b
5536	5536
5537	5537
5538	5538	HB3258- 154 -LRB104 06526 AAS 16562 b HB3258 - 154 - LRB104 06526 AAS 16562 b
5539	5539	HB3258 - 154 - LRB104 06526 AAS 16562 b
5540	5540	1 amounts paid for supply, transmission, distribution,
5541	5541	2 surcharges, and add-on taxes.
5542	5542	3 Notwithstanding the requirements of this subsection
5543	5543	4 (d-5), the contracts executed under this subsection (d-5)
5544	5544	5 shall provide that the total of zero emission credits
5545	5545	6 procured under a procurement plan shall be subject to the
5546	5546	7 limitations of this paragraph (2). For each delivery year,
5547	5547	8 the contractual volume receiving payments in such year
5548	5548	9 shall be reduced for all retail customers based on the
5549	5549	10 amount necessary to limit the net increase that delivery
5550	5550	11 year to the costs of those credits included in the amounts
5551	5551	12 paid by eligible retail customers in connection with
5552	5552	13 electric service to no more than 1.65% of the amount paid
5553	5553	14 per kilowatthour by eligible retail customers during the
5554	5554	15 year ending May 31, 2009. The result of this computation
5555	5555	16 shall apply to and reduce the procurement for all retail
5556	5556	17 customers, and all those customers shall pay the same
5557	5557	18 single, uniform cents per kilowatthour charge under
5558	5558	19 subsection (k) of Section 16-108 of the Public Utilities
5559	5559	20 Act. To arrive at a maximum dollar amount of zero emission
5560	5560	21 credits to be paid for the particular delivery year, the
5561	5561	22 resulting per kilowatthour amount shall be applied to the
5562	5562	23 actual amount of kilowatthours of electricity delivered by
5563	5563	24 the electric utility in the delivery year immediately
5564	5564	25 prior to the procurement, to all retail customers in its
5565	5565	26 service territory. Unpaid contractual volume for any
5566	5566
5567	5567
5568	5568
5569	5569
5570	5570
5571	5571	HB3258 - 154 - LRB104 06526 AAS 16562 b
5572	5572
5573	5573
5574	5574	HB3258- 155 -LRB104 06526 AAS 16562 b HB3258 - 155 - LRB104 06526 AAS 16562 b
5575	5575	HB3258 - 155 - LRB104 06526 AAS 16562 b
5576	5576	1 delivery year shall be paid in any subsequent delivery
5577	5577	2 year in which such payments can be made without exceeding
5578	5578	3 the amount specified in this paragraph (2). The
5579	5579	4 calculations required by this paragraph (2) shall be made
5580	5580	5 only once for each procurement plan year. Once the
5581	5581	6 determination as to the amount of zero emission credits to
5582	5582	7 be paid is made based on the calculations set forth in this
5583	5583	8 paragraph (2), no subsequent rate impact determinations
5584	5584	9 shall be made and no adjustments to those contract amounts
5585	5585	10 shall be allowed. All costs incurred under those contracts
5586	5586	11 and in implementing this subsection (d-5) shall be
5587	5587	12 recovered by the electric utility as provided in this
5588	5588	13 Section.
5589	5589	14 No later than June 30, 2019, the Commission shall
5590	5590	15 review the limitation on the amount of zero emission
5591	5591	16 credits procured under this subsection (d-5) and report to
5592	5592	17 the General Assembly its findings as to whether that
5593	5593	18 limitation unduly constrains the procurement of
5594	5594	19 cost-effective zero emission credits.
5595	5595	20 (3) Six years after the execution of a contract under
5596	5596	21 this subsection (d-5), the Agency shall determine whether
5597	5597	22 the actual zero emission credit payments received by the
5598	5598	23 supplier over the 6-year period exceed the Average ZEC
5599	5599	24 Payment. In addition, at the end of the term of a contract
5600	5600	25 executed under this subsection (d-5), or at the time, if
5601	5601	26 any, a zero emission facility's contract is terminated
5602	5602
5603	5603
5604	5604
5605	5605
5606	5606
5607	5607	HB3258 - 155 - LRB104 06526 AAS 16562 b
5608	5608
5609	5609
5610	5610	HB3258- 156 -LRB104 06526 AAS 16562 b HB3258 - 156 - LRB104 06526 AAS 16562 b
5611	5611	HB3258 - 156 - LRB104 06526 AAS 16562 b
5612	5612	1 under subparagraph (E) of paragraph (1) of this subsection
5613	5613	2 (d-5), then the Agency shall determine whether the actual
5614	5614	3 zero emission credit payments received by the supplier
5615	5615	4 over the term of the contract exceed the Average ZEC
5616	5616	5 Payment, after taking into account any amounts previously
5617	5617	6 credited back to the utility under this paragraph (3). If
5618	5618	7 the Agency determines that the actual zero emission credit
5619	5619	8 payments received by the supplier over the relevant period
5620	5620	9 exceed the Average ZEC Payment, then the supplier shall
5621	5621	10 credit the difference back to the utility. The amount of
5622	5622	11 the credit shall be remitted to the applicable electric
5623	5623	12 utility no later than 120 days after the Agency's
5624	5624	13 determination, which the utility shall reflect as a credit
5625	5625	14 on its retail customer bills as soon as practicable;
5626	5626	15 however, the credit remitted to the utility shall not
5627	5627	16 exceed the total amount of payments received by the
5628	5628	17 facility under its contract.
5629	5629	18 For purposes of this Section, the Average ZEC Payment
5630	5630	19 shall be calculated by multiplying the quantity of zero
5631	5631	20 emission credits delivered under the contract times the
5632	5632	21 average contract price. The average contract price shall
5633	5633	22 be determined by subtracting the amount calculated under
5634	5634	23 subparagraph (B) of this paragraph (3) from the amount
5635	5635	24 calculated under subparagraph (A) of this paragraph (3),
5636	5636	25 as follows:
5637	5637	26 (A) The average of the Social Cost of Carbon, as
5638	5638
5639	5639
5640	5640
5641	5641
5642	5642
5643	5643	HB3258 - 156 - LRB104 06526 AAS 16562 b
5644	5644
5645	5645
5646	5646	HB3258- 157 -LRB104 06526 AAS 16562 b HB3258 - 157 - LRB104 06526 AAS 16562 b
5647	5647	HB3258 - 157 - LRB104 06526 AAS 16562 b
5648	5648	1 defined in subparagraph (B) of paragraph (1) of this
5649	5649	2 subsection (d-5), during the term of the contract.
5650	5650	3 (B) The average of the market price indices, as
5651	5651	4 defined in subparagraph (B) of paragraph (1) of this
5652	5652	5 subsection (d-5), during the term of the contract,
5653	5653	6 minus the baseline market price index, as defined in
5654	5654	7 subparagraph (B) of paragraph (1) of this subsection
5655	5655	8 (d-5).
5656	5656	9 If the subtraction yields a negative number, then the
5657	5657	10 Average ZEC Payment shall be zero.
5658	5658	11 (4) Cost-effective zero emission credits procured from
5659	5659	12 zero emission facilities shall satisfy the applicable
5660	5660	13 definitions set forth in Section 1-10 of this Act.
5661	5661	14 (5) The electric utility shall retire all zero
5662	5662	15 emission credits used to comply with the requirements of
5663	5663	16 this subsection (d-5).
5664	5664	17 (6) Electric utilities shall be entitled to recover
5665	5665	18 all of the costs associated with the procurement of zero
5666	5666	19 emission credits through an automatic adjustment clause
5667	5667	20 tariff in accordance with subsection (k) and (m) of
5668	5668	21 Section 16-108 of the Public Utilities Act, and the
5669	5669	22 contracts executed under this subsection (d-5) shall
5670	5670	23 provide that the utilities' payment obligations under such
5671	5671	24 contracts shall be reduced if an adjustment is required
5672	5672	25 under subsection (m) of Section 16-108 of the Public
5673	5673	26 Utilities Act.
5674	5674
5675	5675
5676	5676
5677	5677
5678	5678
5679	5679	HB3258 - 157 - LRB104 06526 AAS 16562 b
5680	5680
5681	5681
5682	5682	HB3258- 158 -LRB104 06526 AAS 16562 b HB3258 - 158 - LRB104 06526 AAS 16562 b
5683	5683	HB3258 - 158 - LRB104 06526 AAS 16562 b
5684	5684	1 (7) This subsection (d-5) shall become inoperative on
5685	5685	2 January 1, 2028.
5686	5686	3 (d-10) Nuclear Plant Assistance; carbon mitigation
5687	5687	4 credits.
5688	5688	5 (1) The General Assembly finds:
5689	5689	6 (A) The health, welfare, and prosperity of all
5690	5690	7 Illinois citizens require that the State of Illinois act
5691	5691	8 to avoid and not increase carbon emissions from electric
5692	5692	9 generation sources while continuing to ensure affordable,
5693	5693	10 stable, and reliable electricity to all citizens.
5694	5694	11 (B) Absent immediate action by the State to preserve
5695	5695	12 existing carbon-free energy resources, those resources may
5696	5696	13 retire, and the electric generation needs of Illinois'
5697	5697	14 retail customers may be met instead by facilities that
5698	5698	15 emit significant amounts of carbon pollution and other
5699	5699	16 harmful air pollutants at a high social and economic cost
5700	5700	17 until Illinois is able to develop other forms of clean
5701	5701	18 energy.
5702	5702	19 (C) The General Assembly finds that nuclear power
5703	5703	20 generation is necessary for the State's transition to 100%
5704	5704	21 clean energy, and ensuring continued operation of nuclear
5705	5705	22 plants advances environmental and public health interests
5706	5706	23 through providing carbon-free electricity while reducing
5707	5707	24 the air pollution profile of the Illinois energy
5708	5708	25 generation fleet.
5709	5709	26 (D) The clean energy attributes of nuclear generation
5710	5710
5711	5711
5712	5712
5713	5713
5714	5714
5715	5715	HB3258 - 158 - LRB104 06526 AAS 16562 b
5716	5716
5717	5717
5718	5718	HB3258- 159 -LRB104 06526 AAS 16562 b HB3258 - 159 - LRB104 06526 AAS 16562 b
5719	5719	HB3258 - 159 - LRB104 06526 AAS 16562 b
5720	5720	1 facilities support the State in its efforts to achieve
5721	5721	2 100% clean energy.
5722	5722	3 (E) The State currently invests in various forms of
5723	5723	4 clean energy, including, but not limited to, renewable
5724	5724	5 energy, energy efficiency, and low-emission vehicles,
5725	5725	6 among others.
5726	5726	7 (F) The Environmental Protection Agency commissioned
5727	5727	8 an independent audit which provided a detailed assessment
5728	5728	9 of the financial condition of the Illinois nuclear fleet
5729	5729	10 to evaluate its financial viability and whether the
5730	5730	11 environmental benefits of such resources were at risk. The
5731	5731	12 report identified the risk of losing the environmental
5732	5732	13 benefits of several specific nuclear units. The report
5733	5733	14 also identified that the LaSalle County Generating Station
5734	5734	15 will continue to operate through 2026 and therefore is not
5735	5735	16 eligible to participate in the carbon mitigation credit
5736	5736	17 program.
5737	5737	18 (G) Nuclear plants provide carbon-free energy, which
5738	5738	19 helps to avoid many health-related negative impacts for
5739	5739	20 Illinois residents.
5740	5740	21 (H) The procurement of carbon mitigation credits
5741	5741	22 representing the environmental benefits of carbon-free
5742	5742	23 generation will further the State's efforts at achieving
5743	5743	24 100% clean energy and decarbonizing the electricity sector
5744	5744	25 in a safe, reliable, and affordable manner. Further, the
5745	5745	26 procurement of carbon emission credits will enhance the
5746	5746
5747	5747
5748	5748
5749	5749
5750	5750
5751	5751	HB3258 - 159 - LRB104 06526 AAS 16562 b
5752	5752
5753	5753
5754	5754	HB3258- 160 -LRB104 06526 AAS 16562 b HB3258 - 160 - LRB104 06526 AAS 16562 b
5755	5755	HB3258 - 160 - LRB104 06526 AAS 16562 b
5756	5756	1 health and welfare of Illinois residents through decreased
5757	5757	2 reliance on more highly polluting generation.
5758	5758	3 (I) The General Assembly therefore finds it necessary
5759	5759	4 to establish carbon mitigation credits to ensure decreased
5760	5760	5 reliance on more carbon-intensive energy resources, for
5761	5761	6 transitioning to a fully decarbonized electricity sector,
5762	5762	7 and to help ensure health and welfare of the State's
5763	5763	8 residents.
5764	5764	9 (2) As used in this subsection:
5765	5765	10 "Baseline costs" means costs used to establish a customer
5766	5766	11 protection cap that have been evaluated through an independent
5767	5767	12 audit of a carbon-free energy resource conducted by the
5768	5768	13 Environmental Protection Agency that evaluated projected
5769	5769	14 annual costs for operation and maintenance expenses; fully
5770	5770	15 allocated overhead costs, which shall be allocated using the
5771	5771	16 methodology developed by the Institute for Nuclear Power
5772	5772	17 Operations; fuel expenditures; nonfuel capital expenditures;
5773	5773	18 spent fuel expenditures; a return on working capital; the cost
5774	5774	19 of operational and market risks that could be avoided by
5775	5775	20 ceasing operation; and any other costs necessary for continued
5776	5776	21 operations, provided that "necessary" means, for purposes of
5777	5777	22 this definition, that the costs could reasonably be avoided
5778	5778	23 only by ceasing operations of the carbon-free energy resource.
5779	5779	24 "Carbon mitigation credit" means a tradable credit that
5780	5780	25 represents the carbon emission reduction attributes of one
5781	5781	26 megawatt-hour of energy produced from a carbon-free energy
5782	5782
5783	5783
5784	5784
5785	5785
5786	5786
5787	5787	HB3258 - 160 - LRB104 06526 AAS 16562 b
5788	5788
5789	5789
5790	5790	HB3258- 161 -LRB104 06526 AAS 16562 b HB3258 - 161 - LRB104 06526 AAS 16562 b
5791	5791	HB3258 - 161 - LRB104 06526 AAS 16562 b
5792	5792	1 resource.
5793	5793	2 "Carbon-free energy resource" means a generation facility
5794	5794	3 that: (1) is fueled by nuclear power; and (2) is
5795	5795	4 interconnected to PJM Interconnection, LLC.
5796	5796	5 (3) Procurement.
5797	5797	6 (A) Beginning with the delivery year commencing on
5798	5798	7 June 1, 2022, the Agency shall, for electric utilities
5799	5799	8 serving at least 3,000,000 retail customers in the State,
5800	5800	9 seek to procure contracts for no more than approximately
5801	5801	10 54,500,000 cost-effective carbon mitigation credits from
5802	5802	11 carbon-free energy resources because such credits are
5803	5803	12 necessary to support current levels of carbon-free energy
5804	5804	13 generation and ensure the State meets its carbon dioxide
5805	5805	14 emissions reduction goals. The Agency shall not make a
5806	5806	15 partial award of a contract for carbon mitigation credits
5807	5807	16 covering a fractional amount of a carbon-free energy
5808	5808	17 resource's projected output.
5809	5809	18 (B) Each carbon-free energy resource that intends to
5810	5810	19 participate in a procurement shall be required to submit
5811	5811	20 to the Agency the following information for the resource
5812	5812	21 on or before the date established by the Agency:
5813	5813	22 (i) the in-service date and remaining useful life
5814	5814	23 of the carbon-free energy resource;
5815	5815	24 (ii) the amount of power generated annually for
5816	5816	25 each of the past 10 years, which shall be used to
5817	5817	26 determine the capability of each facility;
5818	5818
5819	5819
5820	5820
5821	5821
5822	5822
5823	5823	HB3258 - 161 - LRB104 06526 AAS 16562 b
5824	5824
5825	5825
5826	5826	HB3258- 162 -LRB104 06526 AAS 16562 b HB3258 - 162 - LRB104 06526 AAS 16562 b
5827	5827	HB3258 - 162 - LRB104 06526 AAS 16562 b
5828	5828	1 (iii) a commitment to be reflected in any contract
5829	5829	2 entered into pursuant to this subsection (d-10) to
5830	5830	3 continue operating the carbon-free energy resource at
5831	5831	4 a capacity factor of at least 88% annually on average
5832	5832	5 for the duration of the contract or contracts executed
5833	5833	6 under the procurement held under this subsection
5834	5834	7 (d-10), except in an instance described in
5835	5835	8 subparagraph (E) of paragraph (1) of subsection (d-5)
5836	5836	9 of this Section or made impracticable as a result of
5837	5837	10 compliance with law or regulation;
5838	5838	11 (iv) financial need and the risk of loss of the
5839	5839	12 environmental benefits of such resource, which shall
5840	5840	13 include the following information:
5841	5841	14 (I) the carbon-free energy resource's cost
5842	5842	15 projections, expressed on a per megawatt-hour
5843	5843	16 basis, over the next 5 delivery years, which shall
5844	5844	17 include the following: operation and maintenance
5845	5845	18 expenses; fully allocated overhead costs, which
5846	5846	19 shall be allocated using the methodology developed
5847	5847	20 by the Institute for Nuclear Power Operations;
5848	5848	21 fuel expenditures; nonfuel capital expenditures;
5849	5849	22 spent fuel expenditures; a return on working
5850	5850	23 capital; the cost of operational and market risks
5851	5851	24 that could be avoided by ceasing operation; and
5852	5852	25 any other costs necessary for continued
5853	5853	26 operations, provided that "necessary" means, for
5854	5854
5855	5855
5856	5856
5857	5857
5858	5858
5859	5859	HB3258 - 162 - LRB104 06526 AAS 16562 b
5860	5860
5861	5861
5862	5862	HB3258- 163 -LRB104 06526 AAS 16562 b HB3258 - 163 - LRB104 06526 AAS 16562 b
5863	5863	HB3258 - 163 - LRB104 06526 AAS 16562 b
5864	5864	1 purposes of this subitem (I), that the costs could
5865	5865	2 reasonably be avoided only by ceasing operations
5866	5866	3 of the carbon-free energy resource; and
5867	5867	4 (II) the carbon-free energy resource's revenue
5868	5868	5 projections, including energy, capacity, ancillary
5869	5869	6 services, any other direct State support, known or
5870	5870	7 anticipated federal attribute credits, known or
5871	5871	8 anticipated tax credits, and any other direct
5872	5872	9 federal support.
5873	5873	10 The information described in this subparagraph (B) may
5874	5874	11 be submitted on a confidential basis and shall be treated
5875	5875	12 and maintained by the Agency, the procurement
5876	5876	13 administrator, and the Commission as confidential and
5877	5877	14 proprietary and exempt from disclosure under subparagraphs
5878	5878	15 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
5879	5879	16 Information Act. The Office of the Attorney General shall
5880	5880	17 have access to, and maintain the confidentiality of, such
5881	5881	18 information pursuant to Section 6.5 of the Attorney
5882	5882	19 General Act.
5883	5883	20 (C) The Agency shall solicit bids for the contracts
5884	5884	21 described in this subsection (d-10) from carbon-free
5885	5885	22 energy resources that have satisfied the requirements of
5886	5886	23 subparagraph (B) of this paragraph (3). The contracts
5887	5887	24 procured pursuant to a procurement event shall reflect,
5888	5888	25 and be subject to, the following terms, requirements, and
5889	5889	26 limitations:
5890	5890
5891	5891
5892	5892
5893	5893
5894	5894
5895	5895	HB3258 - 163 - LRB104 06526 AAS 16562 b
5896	5896
5897	5897
5898	5898	HB3258- 164 -LRB104 06526 AAS 16562 b HB3258 - 164 - LRB104 06526 AAS 16562 b
5899	5899	HB3258 - 164 - LRB104 06526 AAS 16562 b
5900	5900	1 (i) Contracts are for delivery of carbon
5901	5901	2 mitigation credits, and are not energy or capacity
5902	5902	3 sales contracts requiring physical delivery. Pursuant
5903	5903	4 to item (iii), contract payments shall fully deduct
5904	5904	5 the value of any monetized federal production tax
5905	5905	6 credits, credits issued pursuant to a federal clean
5906	5906	7 energy standard, and other federal credits if
5907	5907	8 applicable.
5908	5908	9 (ii) Contracts for carbon mitigation credits shall
5909	5909	10 commence with the delivery year beginning on June 1,
5910	5910	11 2022 and shall be for a term of 5 delivery years
5911	5911	12 concluding on May 31, 2027.
5912	5912	13 (iii) The price per carbon mitigation credit to be
5913	5913	14 paid under a contract for a given delivery year shall
5914	5914	15 be equal to an accepted bid price less the sum of:
5915	5915	16 (I) one of the following energy price indices,
5916	5916	17 selected by the bidder at the time of the bid for
5917	5917	18 the term of the contract:
5918	5918	19 (aa) the weighted-average hourly day-ahead
5919	5919	20 price for the applicable delivery year at the
5920	5920	21 busbar of all resources procured pursuant to
5921	5921	22 this subsection (d-10), weighted by actual
5922	5922	23 production from the resources; or
5923	5923	24 (bb) the projected energy price for the
5924	5924	25 PJM Interconnection, LLC Northern Illinois Hub
5925	5925	26 for the applicable delivery year determined
5926	5926
5927	5927
5928	5928
5929	5929
5930	5930
5931	5931	HB3258 - 164 - LRB104 06526 AAS 16562 b
5932	5932
5933	5933
5934	5934	HB3258- 165 -LRB104 06526 AAS 16562 b HB3258 - 165 - LRB104 06526 AAS 16562 b
5935	5935	HB3258 - 165 - LRB104 06526 AAS 16562 b
5936	5936	1 according to subitem (aa) of item (iii) of
5937	5937	2 subparagraph (B) of paragraph (1) of
5938	5938	3 subsection (d-5).
5939	5939	4 (II) the Base Residual Auction Capacity Price
5940	5940	5 for the ComEd zone as determined by PJM
5941	5941	6 Interconnection, LLC, divided by 24 hours per day,
5942	5942	7 for the applicable delivery year for the first 3
5943	5943	8 delivery years, and then any subsequent delivery
5944	5944	9 years unless the PJM Interconnection, LLC applies
5945	5945	10 the Minimum Offer Price Rule to participating
5946	5946	11 carbon-free energy resources because they supply
5947	5947	12 carbon mitigation credits pursuant to this Section
5948	5948	13 at which time, upon notice by the carbon-free
5949	5949	14 energy resource to the Commission and subject to
5950	5950	15 the Commission's confirmation, the value under
5951	5951	16 this subitem shall be zero, as further described
5952	5952	17 in the carbon mitigation credit procurement plan;
5953	5953	18 and
5954	5954	19 (III) any value of monetized federal tax
5955	5955	20 credits, direct payments, or similar subsidy
5956	5956	21 provided to the carbon-free energy resource from
5957	5957	22 any unit of government that is not already
5958	5958	23 reflected in energy prices.
5959	5959	24 If the price-per-megawatt-hour calculation
5960	5960	25 performed under item (iii) of this subparagraph (C)
5961	5961	26 for a given delivery year results in a net positive
5962	5962
5963	5963
5964	5964
5965	5965
5966	5966
5967	5967	HB3258 - 165 - LRB104 06526 AAS 16562 b
5968	5968
5969	5969
5970	5970	HB3258- 166 -LRB104 06526 AAS 16562 b HB3258 - 166 - LRB104 06526 AAS 16562 b
5971	5971	HB3258 - 166 - LRB104 06526 AAS 16562 b
5972	5972	1 value, then the electric utility counterparty to the
5973	5973	2 contract shall multiply such net value by the
5974	5974	3 applicable contract quantity and remit the amount to
5975	5975	4 the supplier.
5976	5976	5 To protect retail customers from retail rate
5977	5977	6 impacts that may arise upon the initiation of carbon
5978	5978	7 policy changes, if the price-per-megawatt-hour
5979	5979	8 calculation performed under item (iii) of this
5980	5980	9 subparagraph (C) for a given delivery year results in
5981	5981	10 a net negative value, then the supplier counterparty
5982	5982	11 to the contract shall multiply such net value by the
5983	5983	12 applicable contract quantity and remit such amount to
5984	5984	13 the electric utility counterparty. The electric
5985	5985	14 utility shall reflect such amounts remitted by
5986	5986	15 suppliers as a credit on its retail customer bills as
5987	5987	16 soon as practicable.
5988	5988	17 (iv) To ensure that retail customers in Northern
5989	5989	18 Illinois do not pay more for carbon mitigation credits
5990	5990	19 than the value such credits provide, and
5991	5991	20 notwithstanding the provisions of this subsection
5992	5992	21 (d-10), the Agency shall not accept bids for contracts
5993	5993	22 that exceed a customer protection cap equal to the
5994	5994	23 baseline costs of carbon-free energy resources.
5995	5995	24 The baseline costs for the applicable year shall
5996	5996	25 be the following:
5997	5997	26 (I) For the delivery year beginning June 1,
5998	5998
5999	5999
6000	6000
6001	6001
6002	6002
6003	6003	HB3258 - 166 - LRB104 06526 AAS 16562 b
6004	6004
6005	6005
6006	6006	HB3258- 167 -LRB104 06526 AAS 16562 b HB3258 - 167 - LRB104 06526 AAS 16562 b
6007	6007	HB3258 - 167 - LRB104 06526 AAS 16562 b
6008	6008	1 2022, the baseline costs shall be an amount equal
6009	6009	2 to $30.30 per megawatt-hour.
6010	6010	3 (II) For the delivery year beginning June 1,
6011	6011	4 2023, the baseline costs shall be an amount equal
6012	6012	5 to $32.50 per megawatt-hour.
6013	6013	6 (III) For the delivery year beginning June 1,
6014	6014	7 2024, the baseline costs shall be an amount equal
6015	6015	8 to $33.43 per megawatt-hour.
6016	6016	9 (IV) For the delivery year beginning June 1,
6017	6017	10 2025, the baseline costs shall be an amount equal
6018	6018	11 to $33.50 per megawatt-hour.
6019	6019	12 (V) For the delivery year beginning June 1,
6020	6020	13 2026, the baseline costs shall be an amount equal
6021	6021	14 to $34.50 per megawatt-hour.
6022	6022	15 An Environmental Protection Agency consultant
6023	6023	16 forecast, included in a report issued April 14, 2021,
6024	6024	17 projects that a carbon-free energy resource has the
6025	6025	18 opportunity to earn on average approximately $30.28
6026	6026	19 per megawatt-hour, for the sale of energy and capacity
6027	6027	20 during the time period between 2022 and 2027.
6028	6028	21 Therefore, the sale of carbon mitigation credits
6029	6029	22 provides the opportunity to receive an additional
6030	6030	23 amount per megawatt-hour in addition to the projected
6031	6031	24 prices for energy and capacity.
6032	6032	25 Although actual energy and capacity prices may
6033	6033	26 vary from year-to-year, the General Assembly finds
6034	6034
6035	6035
6036	6036
6037	6037
6038	6038
6039	6039	HB3258 - 167 - LRB104 06526 AAS 16562 b
6040	6040
6041	6041
6042	6042	HB3258- 168 -LRB104 06526 AAS 16562 b HB3258 - 168 - LRB104 06526 AAS 16562 b
6043	6043	HB3258 - 168 - LRB104 06526 AAS 16562 b
6044	6044	1 that this customer protection cap will help ensure
6045	6045	2 that the cost of carbon mitigation credits will be
6046	6046	3 less than its value, based upon the social cost of
6047	6047	4 carbon identified in the Technical Support Document
6048	6048	5 issued in February 2021 by the U.S. Interagency
6049	6049	6 Working Group on Social Cost of Greenhouse Gases and
6050	6050	7 the PJM Interconnection, LLC carbon dioxide marginal
6051	6051	8 emission rate for 2020, and that a carbon-free energy
6052	6052	9 resource receiving payment for carbon mitigation
6053	6053	10 credits receives no more than necessary to keep those
6054	6054	11 units in operation.
6055	6055	12 (D) No later than 7 days after the effective date of
6056	6056	13 this amendatory Act of the 102nd General Assembly, the
6057	6057	14 Agency shall publish its proposed carbon mitigation credit
6058	6058	15 procurement plan. The Plan shall provide that winning bids
6059	6059	16 shall be selected by taking into consideration which
6060	6060	17 resources best match public interest criteria that
6061	6061	18 include, but are not limited to, minimizing carbon dioxide
6062	6062	19 emissions that result from electricity consumed in
6063	6063	20 Illinois and minimizing sulfur dioxide, nitrogen oxide,
6064	6064	21 and particulate matter emissions that adversely affect the
6065	6065	22 citizens of this State. The selection of winning bids
6066	6066	23 shall also take into account the incremental environmental
6067	6067	24 benefits resulting from the procurement or procurements,
6068	6068	25 such as any existing environmental benefits that are
6069	6069	26 preserved by a procurement held under this subsection
6070	6070
6071	6071
6072	6072
6073	6073
6074	6074
6075	6075	HB3258 - 168 - LRB104 06526 AAS 16562 b
6076	6076
6077	6077
6078	6078	HB3258- 169 -LRB104 06526 AAS 16562 b HB3258 - 169 - LRB104 06526 AAS 16562 b
6079	6079	HB3258 - 169 - LRB104 06526 AAS 16562 b
6080	6080	1 (d-10) and would cease to exist if the procurement were
6081	6081	2 not held, including the preservation of carbon-free energy
6082	6082	3 resources. For those bidders having the same public
6083	6083	4 interest criteria score, the relative ranking of such
6084	6084	5 bidders shall be determined by price. The Plan shall
6085	6085	6 describe in detail how each public interest factor shall
6086	6086	7 be considered and weighted in the bid selection process to
6087	6087	8 ensure that the public interest criteria are applied to
6088	6088	9 the procurement. The Plan shall, to the extent practical
6089	6089	10 and permissible by federal law, ensure that successful
6090	6090	11 bidders make commercially reasonable efforts to apply for
6091	6091	12 federal tax credits, direct payments, or similar subsidy
6092	6092	13 programs that support carbon-free generation and for which
6093	6093	14 the successful bidder is eligible. Upon publishing of the
6094	6094	15 carbon mitigation credit procurement plan, copies of the
6095	6095	16 plan shall be posted and made publicly available on the
6096	6096	17 Agency's website. All interested parties shall have 7 days
6097	6097	18 following the date of posting to provide comment to the
6098	6098	19 Agency on the plan. All comments shall be posted to the
6099	6099	20 Agency's website. Following the end of the comment period,
6100	6100	21 but no more than 19 days later than the effective date of
6101	6101	22 this amendatory Act of the 102nd General Assembly, the
6102	6102	23 Agency shall revise the plan as necessary based on the
6103	6103	24 comments received and file its carbon mitigation credit
6104	6104	25 procurement plan with the Commission.
6105	6105	26 (E) If the Commission determines that the plan is
6106	6106
6107	6107
6108	6108
6109	6109
6110	6110
6111	6111	HB3258 - 169 - LRB104 06526 AAS 16562 b
6112	6112
6113	6113
6114	6114	HB3258- 170 -LRB104 06526 AAS 16562 b HB3258 - 170 - LRB104 06526 AAS 16562 b
6115	6115	HB3258 - 170 - LRB104 06526 AAS 16562 b
6116	6116	1 likely to result in the procurement of cost-effective
6117	6117	2 carbon mitigation credits, then the Commission shall,
6118	6118	3 after notice and hearing and opportunity for comment, but
6119	6119	4 no later than 42 days after the Agency filed the plan,
6120	6120	5 approve the plan or approve it with modification. For
6121	6121	6 purposes of this subsection (d-10), "cost-effective" means
6122	6122	7 carbon mitigation credits that are procured from
6123	6123	8 carbon-free energy resources at prices that are within the
6124	6124	9 limits specified in this paragraph (3). As part of the
6125	6125	10 Commission's review and acceptance or rejection of the
6126	6126	11 procurement results, the Commission shall, in its public
6127	6127	12 notice of successful bidders:
6128	6128	13 (i) identify how the selected carbon-free energy
6129	6129	14 resources satisfy the public interest criteria
6130	6130	15 described in this paragraph (3) of minimizing carbon
6131	6131	16 dioxide emissions that result from electricity
6132	6132	17 consumed in Illinois and minimizing sulfur dioxide,
6133	6133	18 nitrogen oxide, and particulate matter emissions that
6134	6134	19 adversely affect the citizens of this State;
6135	6135	20 (ii) specifically address how the selection of
6136	6136	21 carbon-free energy resources takes into account the
6137	6137	22 incremental environmental benefits resulting from the
6138	6138	23 procurement, including any existing environmental
6139	6139	24 benefits that are preserved by the procurements held
6140	6140	25 under this amendatory Act of the 102nd General
6141	6141	26 Assembly and would have ceased to exist if the
6142	6142
6143	6143
6144	6144
6145	6145
6146	6146
6147	6147	HB3258 - 170 - LRB104 06526 AAS 16562 b
6148	6148
6149	6149
6150	6150	HB3258- 171 -LRB104 06526 AAS 16562 b HB3258 - 171 - LRB104 06526 AAS 16562 b
6151	6151	HB3258 - 171 - LRB104 06526 AAS 16562 b
6152	6152	1 procurements had not been held, such as the
6153	6153	2 preservation of carbon-free energy resources;
6154	6154	3 (iii) quantify the environmental benefit of
6155	6155	4 preserving the carbon-free energy resources procured
6156	6156	5 pursuant to this subsection (d-10), including the
6157	6157	6 following:
6158	6158	7 (I) an assessment value of avoided greenhouse
6159	6159	8 gas emissions measured as the product of the
6160	6160	9 carbon-free energy resources' output over the
6161	6161	10 contract term, using generally accepted
6162	6162	11 methodologies for the valuation of avoided
6163	6163	12 emissions; and
6164	6164	13 (II) an assessment of costs of replacement
6165	6165	14 with other carbon-free energy resources and
6166	6166	15 renewable energy resources, including wind and
6167	6167	16 photovoltaic generation, based upon an assessment
6168	6168	17 of the prices paid for renewable energy credits
6169	6169	18 through programs and procurements conducted
6170	6170	19 pursuant to subsection (c) of Section 1-75 of this
6171	6171	20 Act, and the additional storage necessary to
6172	6172	21 produce the same or similar capability of matching
6173	6173	22 customer usage patterns.
6174	6174	23 (F) The procurements described in this paragraph (3),
6175	6175	24 including, but not limited to, the execution of all
6176	6176	25 contracts procured, shall be completed no later than
6177	6177	26 December 3, 2021. The procurement and plan approval
6178	6178
6179	6179
6180	6180
6181	6181
6182	6182
6183	6183	HB3258 - 171 - LRB104 06526 AAS 16562 b
6184	6184
6185	6185
6186	6186	HB3258- 172 -LRB104 06526 AAS 16562 b HB3258 - 172 - LRB104 06526 AAS 16562 b
6187	6187	HB3258 - 172 - LRB104 06526 AAS 16562 b
6188	6188	1 processes required by this paragraph (3) shall be
6189	6189	2 conducted in conjunction with the procurement and plan
6190	6190	3 approval processes required by Section 16-111.5 of the
6191	6191	4 Public Utilities Act, to the extent practicable. However,
6192	6192	5 the Agency and Commission may, as appropriate, modify the
6193	6193	6 various dates and timelines under this subparagraph and
6194	6194	7 subparagraphs (D) and (E) of this paragraph (3) to meet
6195	6195	8 the December 3, 2021 contract execution deadline.
6196	6196	9 Following the completion of such procurements, and
6197	6197	10 consistent with this paragraph (3), the Agency shall
6198	6198	11 calculate the payments to be made under each contract in a
6199	6199	12 timely fashion.
6200	6200	13 (F-1) Costs incurred by the electric utility pursuant
6201	6201	14 to a contract authorized by this subsection (d-10) shall
6202	6202	15 be deemed prudently incurred and reasonable in amount, and
6203	6203	16 the electric utility shall be entitled to full cost
6204	6204	17 recovery pursuant to a tariff or tariffs filed with the
6205	6205	18 Commission.
6206	6206	19 (G) The counterparty electric utility shall retire all
6207	6207	20 carbon mitigation credits used to comply with the
6208	6208	21 requirements of this subsection (d-10).
6209	6209	22 (H) If a carbon-free energy resource is sold to
6210	6210	23 another owner, the rights, obligations, and commitments
6211	6211	24 under this subsection (d-10) shall continue to the
6212	6212	25 subsequent owner.
6213	6213	26 (I) This subsection (d-10) shall become inoperative on
6214	6214
6215	6215
6216	6216
6217	6217
6218	6218
6219	6219	HB3258 - 172 - LRB104 06526 AAS 16562 b
6220	6220
6221	6221
6222	6222	HB3258- 173 -LRB104 06526 AAS 16562 b HB3258 - 173 - LRB104 06526 AAS 16562 b
6223	6223	HB3258 - 173 - LRB104 06526 AAS 16562 b
6224	6224	1 January 1, 2028.
6225	6225	2 (e) The draft procurement plans are subject to public
6226	6226	3 comment, as required by Section 16-111.5 of the Public
6227	6227	4 Utilities Act.
6228	6228	5 (f) The Agency shall submit the final procurement plan to
6229	6229	6 the Commission. The Agency shall revise a procurement plan if
6230	6230	7 the Commission determines that it does not meet the standards
6231	6231	8 set forth in Section 16-111.5 of the Public Utilities Act.
6232	6232	9 (g) The Agency shall assess fees to each affected utility
6233	6233	10 to recover the costs incurred in preparation of the annual
6234	6234	11 procurement plan for the utility.
6235	6235	12 (h) The Agency shall assess fees to each bidder to recover
6236	6236	13 the costs incurred in connection with a competitive
6237	6237	14 procurement process.
6238	6238	15 (i) A renewable energy credit, carbon emission credit,
6239	6239	16 zero emission credit, or carbon mitigation credit can only be
6240	6240	17 used once to comply with a single portfolio or other standard
6241	6241	18 as set forth in subsection (c), subsection (d), or subsection
6242	6242	19 (d-5) of this Section, respectively. A renewable energy
6243	6243	20 credit, carbon emission credit, zero emission credit, or
6244	6244	21 carbon mitigation credit cannot be used to satisfy the
6245	6245	22 requirements of more than one standard. If more than one type
6246	6246	23 of credit is issued for the same megawatt hour of energy, only
6247	6247	24 one credit can be used to satisfy the requirements of a single
6248	6248	25 standard. After such use, the credit must be retired together
6249	6249	26 with any other credits issued for the same megawatt hour of
6250	6250
6251	6251
6252	6252
6253	6253
6254	6254
6255	6255	HB3258 - 173 - LRB104 06526 AAS 16562 b
6256	6256
6257	6257
6258	6258	HB3258- 174 -LRB104 06526 AAS 16562 b HB3258 - 174 - LRB104 06526 AAS 16562 b
6259	6259	HB3258 - 174 - LRB104 06526 AAS 16562 b
6260	6260
6261	6261
6262	6262
6263	6263
6264	6264
6265	6265	HB3258 - 174 - LRB104 06526 AAS 16562 b