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Illinois House Bill HB3399

Illinois 2025-2026 Regular Session

Illinois House Bill HB3399 Compare Versions

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1-HB3399 EngrossedLRB104 10086 AAS 20158 b HB3399 Engrossed LRB104 10086 AAS 20158 b
2- HB3399 Engrossed LRB104 10086 AAS 20158 b
1+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3399 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED: New Act Creates the Geothermal Homes and Business Act. Provides that, beginning January 1, 2026, the long-term renewable resources procurement plan developed by the Illinois Power Agency shall include a Geothermal Homes and Business Program for the procurement of geothermal renewable energy credits. Sets forth provisions concerning the geothermal heating and cooling system calculation methodology; Program block allocation; Program block pricing; approved vendors; contract terms; utility cost recovery; extenuating circumstances; administration of the Act by the Illinois Power Agency; and the prohibition of double claiming geothermal renewable energy credits. Effective immediately. LRB104 10086 AAS 20158 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3399 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED: New Act New Act Creates the Geothermal Homes and Business Act. Provides that, beginning January 1, 2026, the long-term renewable resources procurement plan developed by the Illinois Power Agency shall include a Geothermal Homes and Business Program for the procurement of geothermal renewable energy credits. Sets forth provisions concerning the geothermal heating and cooling system calculation methodology; Program block allocation; Program block pricing; approved vendors; contract terms; utility cost recovery; extenuating circumstances; administration of the Act by the Illinois Power Agency; and the prohibition of double claiming geothermal renewable energy credits. Effective immediately. LRB104 10086 AAS 20158 b LRB104 10086 AAS 20158 b A BILL FOR
2+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3399 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
3+New Act New Act
4+New Act
5+Creates the Geothermal Homes and Business Act. Provides that, beginning January 1, 2026, the long-term renewable resources procurement plan developed by the Illinois Power Agency shall include a Geothermal Homes and Business Program for the procurement of geothermal renewable energy credits. Sets forth provisions concerning the geothermal heating and cooling system calculation methodology; Program block allocation; Program block pricing; approved vendors; contract terms; utility cost recovery; extenuating circumstances; administration of the Act by the Illinois Power Agency; and the prohibition of double claiming geothermal renewable energy credits. Effective immediately.
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8+A BILL FOR
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311 1 AN ACT concerning regulation.
412 2 Be it enacted by the People of the State of Illinois,
513 3 represented in the General Assembly:
614 4 Section 1. Short title. This Act may be cited as the
7-5 Geothermal Homes and Businesses Act.
15+5 Geothermal Homes and Business Act.
816 6 Section 5. Findings. The General Assembly finds that:
917 7 (1) Geothermal heating and cooling systems leverage
1018 8 the year-round stability of the earth's underground
1119 9 temperature, which creates renewable energy potential, in
1220 10 order to provide a zero-cost base temperature for space
1321 11 heating or cooling and water heating.
14-12 (2) The Geothermal Homes and Businesses Program would
22+12 (2) The Geothermal Homes and Business Program would
1523 13 promote innovation in, and production and use of,
1624 14 geothermal heating and cooling systems that (i)
1725 15 significantly reduce ratepayer impacts and spur economic
1826 16 development in the State, (ii) expand job opportunities
1927 17 for State trade-based labor and manufacturing in the
2028 18 United States, (iii) bolster resiliency and support State
2129 19 infrastructure, and (iv) mitigate local pollution and
2230 20 global greenhouse gas emissions.
2331 21 (3) Incentives generated through the use of
2432 22 State-sited geothermal heating and cooling systems under
2533 23 this Act will promote innovation and investment in
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34-1 geothermal heating and cooling systems.
35-2 Section 10. Definitions. As used in this Act:
36-3 "Agency" means the Illinois Power Agency.
37-4 "Commission" means the Illinois Commerce Commission.
38-5 "Geothermal heating and cooling system" means a system
39-6 located in this State that meets all of the following
40-7 requirements:
41-8 (1) exchanges thermal energy from groundwater or a
42-9 shallow ground source to generate thermal energy through
43-10 an electric geothermal heat pump or a system of electric
44-11 geothermal heat pumps interconnected with any geothermal
45-12 extraction facility that is (i) a closed loop or a series
46-13 of closed loop systems in which fluid is permanently
47-14 confined within a pipe or tubing and does not come in
48-15 contact with the outside environment or (ii) an open loop
49-16 system in which ground or surface water is circulated in
50-17 an environmentally safe manner directly into the facility
51-18 and returned to the same aquifer or surface water source;
52-19 (2) meets or exceeds the current federal Energy Star
53-20 product specification standards;
54-21 (3) replaces or displaces less efficient space or
55-22 water heating systems, regardless of fuel type;
56-23 (4) replaces or displaces less efficient space cooling
57-24 systems, when applicable;
58-25 (5) does not feed electricity back to the grid, as
37+104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3399 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
38+New Act New Act
39+New Act
40+Creates the Geothermal Homes and Business Act. Provides that, beginning January 1, 2026, the long-term renewable resources procurement plan developed by the Illinois Power Agency shall include a Geothermal Homes and Business Program for the procurement of geothermal renewable energy credits. Sets forth provisions concerning the geothermal heating and cooling system calculation methodology; Program block allocation; Program block pricing; approved vendors; contract terms; utility cost recovery; extenuating circumstances; administration of the Act by the Illinois Power Agency; and the prohibition of double claiming geothermal renewable energy credits. Effective immediately.
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43+A BILL FOR
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69-1 defined at the level of the geothermal heat pump; and
70-2 (6) became operational on or after June 1, 2017.
71-3 "Program" means the Geothermal Homes and Businesses
72-4 Program.
73-5 Section 15. Program establishment. Beginning January 1,
74-6 2026, the long-term renewable resources procurement plan
75-7 developed by the Agency shall include a Geothermal Homes and
76-8 Businesses Program for the procurement of geothermal renewable
77-9 energy credits. The Program shall be designed to provide for
78-10 the steady, predictable, and sustainable growth of new
79-11 geothermal heating and cooling system deployment in the State.
80-12 The Program shall function as a separate and distinct
81-13 procurement program that does not draw from other sources that
82-14 allocate and fund renewable energy credits.
83-15 Section 20. Categorization. Qualifying systems for the
84-16 Program shall be organized into 3 categories based on
85-17 structural features and use-cases: (i) Residential, (ii)
86-18 Commercial, and (iii) Public or Environmental Justice. These
87-19 categories shall be defined at the discretion of the Agency.
88-20 Section 25. Geothermal heating and cooling system
89-21 calculation methodology. Energy derived from a geothermal
90-22 heating and cooling system shall be eligible for inclusion in
91-23 meeting the requirements of the Program. Eligible geothermal
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102-1 renewable energy credits shall be created by calculating the
103-2 difference between the energy load used by the geothermal
104-3 heating and cooling system and the energy load used by a less
105-4 efficient baseline system for the equivalent space heating and
106-5 cooling or water heating load required by the building.
107-6 Geothermal renewable energy credits shall be expressed in
108-7 megawatt-hour units. To make this calculation, the Agency
109-8 shall identify an appropriate formula supported by a
110-9 geothermal industry trade organization. This formula shall
111-10 generally reflect calculation methodologies already in use for
112-11 other State renewable portfolio standards. The Agency shall
113-12 determine the form and manner in which such geothermal
114-13 renewable energy credits are verified, in accordance with
115-14 national best practices.
116-15 Section 30. Program block allocation.
117-16 (a) As used in this Section, "period" means each Program
118-17 delivery year through a specified delivery year.
119-18 (b) The Program shall include the following for eligible
120-19 projects for each delivery year:
121-20 (1) a block of geothermal renewable energy credit
122-21 volumes;
123-22 (2) a price for geothermal renewable energy credits
124-23 within the identified block; and
125-24 (3) the terms and conditions for securing a spot on a
126-25 waitlist once the block is fully committed or reserved.
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68+1 geothermal heating and cooling systems.
69+2 Section 10. Definition of qualifying systems. As used in
70+3 this Act:
71+4 "Agency" means the Illinois Power Agency.
72+5 "Commission" means the Illinois Commerce Commission.
73+6 "Geothermal heating and cooling system" or means a system
74+7 located in this State that meets all of the following
75+8 requirements:
76+9 (1) exchanges thermal energy from groundwater or a
77+10 shallow ground source to generate thermal energy through
78+11 an electric geothermal heat pump or a system of electric
79+12 geothermal heat pumps interconnected with any geothermal
80+13 extraction facility that is (i) a closed loop or a series
81+14 of closed loop systems in which fluid is permanently
82+15 confined within a pipe or tubing and does not come in
83+16 contact with the outside environment or (ii) an open loop
84+17 system in which ground or surface water is circulated in
85+18 an environmentally safe manner directly into the facility
86+19 and returned to the same aquifer or surface water source;
87+20 (2) meets or exceeds the current federal Energy Star
88+21 product specification standards;
89+22 (3) replaces or displaces less efficient space or
90+23 water heating systems, regardless of fuel type;
91+24 (4) replaces or displaces less efficient space cooling
92+25 systems;
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137-1 The Agency shall strive to issue blocks sized to provide
138-2 for stability and market growth.
139-3 (c) The Agency shall propose a block for each Program
140-4 delivery year through the delivery year beginning in 2035.
141-5 Before the close of the period in 2035, the Agency shall
142-6 propose blocks for each Program delivery year for the next
143-7 period, beginning in 2036 and ending at the discretion of the
144-8 Agency. The Agency shall continue to establish subsequent
145-9 periods.
146-10 (d) The waitlist of projects in a given year shall carry
147-11 over to apply to the subsequent year when another block is
148-12 opened. For each category for a delivery year, the Agency
149-13 shall determine the amount of geothermal renewable energy
150-14 credit volumes available in each block and the purchase price
151-15 for each block, if the purchase price provided and the total
152-16 geothermal renewable energy credit volume in all blocks for
153-17 all categories shall be sufficient to meet Program goals.
154-18 (e) Systems in any of the categories listed in Section 20
155-19 may reserve volumes in the annual block. However, at least 33%
156-20 of each annual block shall be reserved by systems that meet the
157-21 Agency's definition of "residential". At the Agency's
158-22 discretion, certain volumes of an annual block may be reserved
159-23 for the Public or Environmental Justice category at a price
160-24 that makes it feasible and affordable for buildings such as
161-25 public schools, military bases, military hospitals, and
162-26 low-income housing to install geothermal heating and cooling
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103+1 (5) does not feed electricity back to the grid, as
104+2 defined at the level of the geothermal heat pump; and
105+3 (6) became operational on or after June 1, 2017.
106+4 "Program" means the Geothermal Homes and Business Program.
107+5 Section 15. Program establishment. Beginning January 1,
108+6 2026, the long-term renewable resources procurement plan
109+7 developed by the Agency shall include a Geothermal Homes and
110+8 Business Program for the procurement of geothermal renewable
111+9 energy credits. The Program shall be designed to provide for
112+10 the steady, predictable, and sustainable growth of new
113+11 geothermal heating and cooling system deployment in the State
114+12 Section 20. Categorization. Qualifying systems for the
115+13 Program shall be organized into 3 categories based on
116+14 structural features and use-cases: (i) Residential, (ii)
117+15 Commercial, and (iii) Public or Environmental Justice. These
118+16 categories shall be defined at the discretion of the Agency.
119+17 Section 25. Geothermal heating and cooling system
120+18 calculation methodology. Energy derived from a geothermal
121+19 heating and cooling system shall be eligible for inclusion in
122+20 meeting the requirements of the Program. Eligible geothermal
123+21 renewable energy credits shall be created by calculating the
124+22 difference between the load served by the geothermal heating
125+23 and cooling system and the load served by a less efficient
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173-1 systems on premises. Additional allocation of geothermal
174-2 renewable energy credit volumes per block per structural
175-3 category may be defined at the discretion of the Agency.
176-4 (f) The Agency shall establish Program eligibility
177-5 requirements that ensure that systems that enter the Program
178-6 are sufficiently mature to indicate a demonstrable path to
179-7 completion. The Agency may periodically review its prior
180-8 decisions establishing the amount of geothermal renewable
181-9 energy credit volumes in each annual block and the purchase
182-10 price for each block and may propose, on an expedited basis,
183-11 changes to the previously set values, including, but not
184-12 limited to, redistributing the amounts and the available funds
185-13 as necessary and appropriate, subject to Commission approval.
186-14 The Agency may define different block sizes, purchase prices,
187-15 or other distinct terms and conditions for projects located in
188-16 different utility service territories if the Agency deems it
189-17 necessary.
190-18 (g) The Program shall be designed to ensure that
191-19 geothermal renewable energy credits are procured from projects
192-20 in diverse locations and are not concentrated in a few
193-21 regional areas.
194-22 Section 35. Program block pricing. The Program shall
195-23 provide a transparent annual schedule of geothermal renewable
196-24 energy credit prices and quantities to enable the geothermal
197-25 heating and cooling market to scale up and for geothermal
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136+1 baseline system for space heating and cooling or water
137+2 heating. To make this calculation, the Agency shall identify
138+3 an appropriate formula supported by a geothermal industry
139+4 trade organization. This formula shall generally reflect
140+5 calculation methodologies already in use for other State
141+6 renewable portfolio standards. The Agency shall determine the
142+7 form and manner in which such geothermal renewable energy
143+8 credits are verified, in accordance with national best
144+9 practices.
145+10 Section 30. Program block allocation.
146+11 (a) As used in this Section, "period" means each Program
147+12 delivery year through a specified delivery year.
148+13 (b) The Program shall include the following for eligible
149+14 projects for each delivery year:
150+15 (1) a block of geothermal renewable energy credit
151+16 volumes;
152+17 (2) a price for geothermal renewable energy credits
153+18 within the identified block; and
154+19 (3) the terms and conditions for securing a spot on a
155+20 waitlist once the block is fully committed or reserved.
156+21 The Agency shall strive to issue blocks sized to provide
157+22 for stability and market growth.
158+23 (c) The Agency shall propose a block for each Program
159+24 delivery year through the delivery year beginning in 2035.
160+25 Before the close of the period in 2035, the Agency shall
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208-1 renewable energy credit prices to adjust at a predictable rate
209-2 over time. Geothermal renewable energy credit prices set by
210-3 the Agency for the Program shall be reflected as a set value or
211-4 the product of a formula.
212-5 Section 40. Approved vendors requirement.
213-6 (a) Property owners participating in the Program shall be
214-7 required to work with an approved vendor for Program
215-8 registration and application, geothermal renewable energy
216-9 credit generation, geothermal renewable energy credit
217-10 verification, geothermal renewable energy credit delivery, as
218-11 well as Program contract fulfillment and payment.
219-12 (b) The Agency shall establish a registration process for
220-13 entities seeking to qualify for Program-administered incentive
221-14 funding and establish baseline qualifications for vendor
222-15 approval. The Agency shall maintain a list of approved
223-16 entities on the Program's website, and may revoke a vendor's
224-17 ability to receive Program-administered incentive funding
225-18 status upon a determination that the vendor failed to comply
226-19 with contract terms, the law, or other Program requirements.
227-20 (c) The Agency shall establish Program requirements and
228-21 minimum contract terms to ensure projects are properly
229-22 installed and operate to the level of expected benefits.
230-23 Program requirements may include on-site inspections and photo
231-24 documentation of projects under construction. The Agency may
232-25 require repairs, alterations, or additions to remedy any
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171+1 propose blocks for each Program delivery year for the next
172+2 period, beginning in 2036 and ending at the discretion of the
173+3 Agency. The Agency shall continue to establish subsequent
174+4 periods.
175+5 (d) The waitlist of projects in a given year shall carry
176+6 over to apply to the subsequent year when another block is
177+7 opened. For each category for a delivery year, the Agency
178+8 shall determine the amount of geothermal renewable energy
179+9 credit volumes available in each block and the purchase price
180+10 for each block, if the purchase price provided and the total
181+11 geothermal renewable energy credit volume in all blocks for
182+12 all categories shall be sufficient to meet Program goals.
183+13 (e) Systems in any of the categories listed in Section 20
184+14 may reserve volumes in the annual block. However, at least 50%
185+15 of each annual block shall be reserved by systems that meet the
186+16 Agency's definition of "Residential". At the Agency's
187+17 discretion, certain volumes of an annual block may be reserved
188+18 for the Public or Environmental Justice category at a price
189+19 that makes it feasible and affordable for buildings such as
190+20 public schools, military bases, military hospitals, and
191+21 low-income housing to install geothermal heating and cooling
192+22 systems on premises. Additional allocation of geothermal
193+23 renewable energy credit volumes per block per structural
194+24 category may be defined at the discretion of the Agency.
195+25 (f) The Agency shall establish Program eligibility
196+26 requirements that ensure that systems that enter the Program
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243-1 enforcement actions taken in response to those complaints.
244-2 Section 45. Contract terms; advanced capital; contract
245-3 length; transfer of geothermal heating and cooling system
246-4 ownership.
247-5 (a) The Agency shall propose a payment structure for
248-6 Program contracts upon a demonstration of qualification or
249-7 need and applicant firms shall have advanced capital disbursed
250-8 before geothermal renewable energy credits are first
251-9 generated. The amount or percentage of capital advanced for
252-10 residential systems shall be at the discretion of the Agency
253-11 but not be less than 40% of the total contract. The amount or
254-12 percentage of capital advanced for commercial, public, or
255-13 environmental justice systems shall be at the discretion of
256-14 the Agency.
257-15 (b) The amount or percentage of advanced capital may vary
258-16 by year, or inter-year, by structure category, block, and
259-17 other factors as deemed applicable by the Agency and by an
260-18 applicant's demonstration of need.
261-19 (c) Contracts featuring capital advanced prior to system
262-20 operation shall feature provisions to ensure both the
263-21 successful development of applicant projects and the delivery
264-22 of geothermal renewable energy credits for the full term of
265-23 the contract, including ongoing collateral requirements and
266-24 other provisions deemed necessary by the Agency. The
267-25 percentage or amount of capital advanced prior to system
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207+1 are sufficiently mature to indicate a demonstrable path to
208+2 completion. The Agency may periodically review its prior
209+3 decisions establishing the amount of geothermal renewable
210+4 energy credit volumes in each annual block and the purchase
211+5 price for each block and may propose, on an expedited basis,
212+6 changes to the previously set values, including, but not
213+7 limited to, redistributing the amounts and the available funds
214+8 as necessary and appropriate, subject to Commission approval.
215+9 The Agency may define different block sizes, purchase prices,
216+10 or other distinct terms and conditions for projects located in
217+11 different utility service territories if the Agency deems it
218+12 necessary.
219+13 (g) The Program shall be designed to ensure that
220+14 geothermal renewable energy credits are procured from projects
221+15 in diverse locations and are not concentrated in a few
222+16 regional areas.
223+17 Section 35. Program block pricing. The Program shall
224+18 provide a transparent annual schedule of geothermal renewable
225+19 energy credit prices and quantities to enable the geothermal
226+20 heating and cooling market to scale up and for geothermal
227+21 renewable energy credit prices to adjust at a predictable rate
228+22 over time. Geothermal renewable energy credit prices set by
229+23 the Agency for the Program shall be reflected as a set value or
230+24 the product of a formula.
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278-1 operation shall not increase the overall contract value,
279-2 except that contracts executed under this Section may feature
280-3 geothermal renewable energy credits higher than those offered
281-4 to similar projects participating in other categories.
282-5 (d) The capital which is not advanced shall be disbursed
283-6 upon delivery of geothermal renewable energy credits as per
284-7 contract fulfillment over the delivery term, not to exceed,
285-8 during each delivery year, the contract price multiplied by
286-9 the estimated annual geothermal renewable energy credit
287-10 generation amount.
288-11 (e) For geothermal renewable energy credits that qualify
289-12 and are procured under the Program, geothermal renewable
290-13 energy credits delivery contract length shall be 15 years.
291-14 (f) If generation of geothermal renewable energy credits
292-15 during a delivery year exceeds the estimated annual generation
293-16 amount, the excess geothermal renewable energy credits shall
294-17 be carried forward to future delivery years and shall not
295-18 expire during the delivery term. If geothermal renewable
296-19 energy credit generation during a delivery year, including
297-20 carried forward excess geothermal renewable energy credits, if
298-21 any, is less than the estimated annual generation amount,
299-22 payments during such delivery year shall not exceed the
300-23 quantity generated plus the quantity carried forward
301-24 multiplied by the contract price. The electric utility shall
302-25 receive all geothermal renewable energy credits generated by
303-26 the project during the first 25 years of operation and retire
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241+1 Section 40. Approved vendors requirement.
242+2 (a) Property owners participating in the Program shall be
243+3 required to work with an approved vendor for Program
244+4 registration and application, geothermal renewable energy
245+5 credit generation, geothermal renewable energy credit
246+6 verification, geothermal renewable energy credit delivery, as
247+7 well as Program contract fulfillment and payment.
248+8 (b) The Agency shall establish a registration process for
249+9 entities seeking to qualify for Program-administered incentive
250+10 funding and establish baseline qualifications for vendor
251+11 approval. The Agency shall maintain a list of approved
252+12 entities on the Program's website, and may revoke a vendor's
253+13 ability to receive Program-administered incentive funding
254+14 status upon a determination that the vendor failed to comply
255+15 with contract terms, the law, or other Program requirements.
256+16 (c) The Agency shall establish Program requirements and
257+17 minimum contract terms to ensure projects are properly
258+18 installed and operate to the level of expected benefits.
259+19 Program requirements may include on-site inspections and photo
260+20 documentation of projects under construction. The Agency may
261+21 require repairs, alterations, or additions to remedy any
262+22 enforcement actions taken in response to those complaints.
263+23 Section 45. Contract terms; advanced capital; contract
264+24 length; transfer of geothermal heating and cooling system
265+25 ownership.
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314-1 all geothermal renewable energy credits paid for under this
315-2 item and return at the end of the delivery term all geothermal
316-3 renewable energy credits that were not paid for.
317-4 (g) Geothermal renewable energy credits generated by the
318-5 project thereafter shall not be transferred under the
319-6 geothermal renewable energy credit delivery contract with the
320-7 counterparty electric utility. Subscription of 90% of total
321-8 geothermal renewable energy credit volumes or greater shall be
322-9 deemed to be fully subscribed.
323-10 (h) Each project shall be subject to the Prevailing Wage
324-11 Act. The Agency shall require verification that, for all
325-12 construction for a project that was performed by a renewable
326-13 energy credit delivery contract holder, its contractors, or
327-14 its subcontractors, the construction employees received an
328-15 amount for the work equal to or greater than the general
329-16 prevailing rate as provided for in Section 3 of the Prevailing
330-17 Wage Act.
331-18 (i) Geothermal renewable energy credits for any single
332-19 geothermal heating and cooling project that is 285 tons or
333-20 larger and is procured after the effective date of this Act
334-21 shall only be generated by a project built by general
335-22 contractors who entered into a project labor agreement, as
336-23 defined by the Illinois Power Agency Act, prior to
337-24 construction. The project labor agreement shall be filed with
338-25 the Director in accordance with procedures established by the
339-26 Agency through its long-term renewable resources procurement
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276+1 (a) The Agency shall propose a payment structure for
277+2 Program contracts upon a demonstration of qualification or
278+3 need and applicant firms shall have advanced capital disbursed
279+4 after the geothermal heating and cooling system is operational
280+5 but before geothermal renewable energy credits are first
281+6 generated. The amount or percentage of capital advanced shall
282+7 be at the discretion of the Agency but not be less than 40% of
283+8 the total contract.
284+9 (b) The amount or percentage of advanced capital may vary
285+10 by year, or inter-year, by structure category, block, and
286+11 other factors as deemed applicable by the Agency and by an
287+12 applicant's demonstration of need.
288+13 (c) Contracts featuring capital advanced prior to system
289+14 operation shall feature provisions to ensure both the
290+15 successful development of applicant projects and the delivery
291+16 of geothermal renewable energy credits for the full term of
292+17 the contract, including ongoing collateral requirements and
293+18 other provisions deemed necessary by the Agency. The
294+19 percentage or amount of capital advanced prior to system
295+20 operation shall not increase the overall contract value,
296+21 except that contracts executed under this Section may feature
297+22 geothermal renewable energy credits higher than those offered
298+23 to similar projects participating in other categories.
299+24 (d) The capital which is not advanced shall be disbursed
300+25 upon delivery of geothermal renewable energy credits as per
301+26 contract fulfillment over the delivery term, not to exceed,
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350-1 plan. Any information submitted to the Agency pursuant to this
351-2 subsection shall be considered commercially sensitive
352-3 information. The project labor agreement shall provide the
353-4 names, addresses, and occupations of the owner of the plant
354-5 and the individuals representing the labor organization
355-6 employees that participate in the project labor agreement. The
356-7 project labor agreement shall also specify terms and
357-8 conditions as provided in this Act.
358-9 Section 50. Contract terms; collateral and counterparties.
359-10 (a) Each contract shall include provisions to ensure the
360-11 delivery of the estimated quantity of geothermal renewable
361-12 energy credits, including the requirement of a bid security
362-13 deposit in an amount deemed appropriate by the Agency.
363-14 (b) An obligated utility shall be the counterparty to the
364-15 contracts executed under this Act that are approved by the
365-16 Commission. No contract shall be executed for an amount that
366-17 is less than one geothermal renewable energy credit per year.
367-18 (c) Nothing in this Act shall require the utility to
368-19 advance any payment or pay any amounts that exceed the actual
369-20 amount of revenues anticipated to be collected by the utility
370-21 inclusive of eligible funds collected in prior years and
371-22 alternative compliance payments for use by the utility.
372-23 (d) Contracts may be assignable, but only to entities
373-24 first deemed by the Agency to have met Program terms and
374-25 requirements applicable to direct Program participation. In
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312+1 during each delivery year, the contract price multiplied by
313+2 the estimated annual geothermal renewable energy credit
314+3 generation amount.
315+4 (e) For geothermal renewable energy credits that qualify
316+5 and are procured under the Program, geothermal renewable
317+6 energy credits delivery contract length shall be 25 years.
318+7 (f) If generation of geothermal renewable energy credits
319+8 during a delivery year exceeds the estimated annual generation
320+9 amount, the excess geothermal renewable energy credits shall
321+10 be carried forward to future delivery years and shall not
322+11 expire during the delivery term. If geothermal renewable
323+12 energy credit generation during a delivery year, including
324+13 carried forward excess geothermal renewable energy credits, if
325+14 any, is less than the estimated annual generation amount,
326+15 payments during such delivery year shall not exceed the
327+16 quantity generated plus the quantity carried forward
328+17 multiplied by the contract price. The electric utility shall
329+18 receive all geothermal renewable energy credits generated by
330+19 the project during the first 25 years of operation and retire
331+20 all geothermal renewable energy credits paid for under this
332+21 item and return at the end of the delivery term all geothermal
333+22 renewable energy credits that were not paid for.
334+23 (g) Geothermal renewable energy credits generated by the
335+24 project thereafter shall not be transferred under the
336+25 geothermal renewable energy credit delivery contract with the
337+26 counterparty electric utility. Subscription of 90% of total
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385-1 developing contracts for the delivery of geothermal renewable
386-2 energy credits, the Agency may establish fees applicable to
387-3 each contract assignment.
388-4 Section 55. Utility cost recovery. The electric utility
389-5 shall be entitled to recover all of its costs associated with
390-6 the procurement of geothermal renewable energy credits under
391-7 the Program. These costs shall include associated reasonable
392-8 expenses for implementing the procurement Programs, including,
393-9 but not limited to, the costs of administering and evaluating
394-10 the Program through an automatic adjustment clause tariff.
395-11 Section 60. Extenuating circumstances. If, at any time,
396-12 approved applications for the Program exceed funds collected
397-13 by the electric utility or would cause the Agency to exceed the
398-14 limitation on the amount of renewable energy resources that
399-15 may be procured, then the Agency may consider future
400-16 uncommitted funds to be reserved for these contracts on a
401-17 first-come, first-served basis.
402-18 Notwithstanding other requirements of this Act, no
403-19 modification shall be required to Program contracts if they
404-20 were already executed prior to the establishment, approval,
405-21 and implementation of new contract forms as a result of this
406-22 Act.
407-23 Section 65. Illinois Power Agency administration.
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348+1 geothermal renewable energy credit volumes or greater shall be
349+2 deemed to be fully subscribed.
350+3 Section 50. Contract terms; collateral and counterparties.
351+4 (a) Each contract shall include provisions to ensure the
352+5 delivery of the estimated quantity of geothermal renewable
353+6 energy credits, including the requirement of a bid security
354+7 deposit in an amount deemed appropriate by the Agency.
355+8 (b) An obligated utility shall be the counterparty to the
356+9 contracts executed under this Act that are approved by the
357+10 Commission. No contract shall be executed for an amount that
358+11 is less than one geothermal renewable energy credit per year.
359+12 (c) Nothing in this Act shall require the utility to
360+13 advance any payment or pay any amounts that exceed the actual
361+14 amount of revenues anticipated to be collected by the utility
362+15 inclusive of eligible funds collected in prior years and
363+16 alternative compliance payments for use by the utility.
364+17 (d) Contracts may be assignable, but only to entities
365+18 first deemed by the Agency to have met Program terms and
366+19 requirements applicable to direct Program participation. In
367+20 developing contracts for the delivery of geothermal renewable
368+21 energy credits, the Agency may establish fees applicable to
369+22 each contract assignment.
370+23 Section 55. Utility cost recovery. The electric utility
371+24 shall be entitled to recover all of its costs associated with
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418-1 (a) The Agency shall strive to minimize administrative
419-2 expenses in the implementation of the Program. The Agency may
420-3 use any existing program administrator and any applicable
421-4 subcontractors to develop, administer, implement, operate, and
422-5 evaluate the Program.
423-6 (b) If the Agency becomes aware of a circumstance that
424-7 would warrant consideration of a mid-year renewable energy
425-8 credit price adjustment, it shall conduct modeling of
426-9 renewable energy credit pricing dynamics, in order to provide
427-10 notice to stakeholders, and conduct a stakeholder feedback
428-11 process before finalizing any changes. In line with the
429-12 Illinois Power Agency Act, Program modifications to any block
430-13 price that does not deviate from the Commission's approved
431-14 value by more than 10% shall take effect immediately and are
432-15 not subject to Commission review and approval. Program
433-16 modifications to any block price that deviate more than 10%
434-17 from the Commission's approved value shall be approved by the
435-18 Commission as a long-term plan amendment under Section
436-19 16-111.5 of the Public Utilities Act.
437-20 (c) In addition to covering the costs of Program
438-21 administration, the Agency, in conjunction with its Program
439-22 Administrator, may also use the proceeds of such fees charged
440-23 to participating firms to support public education, labor
441-24 training, and ongoing regional and national coordination with
442-25 nonprofit organizations, public bodies, and others engaged in
443-26 the implementation of geothermal heating and cooling system
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382+1 the procurement of geothermal renewable energy credits under
383+2 the Program. These costs shall include associated reasonable
384+3 expenses for implementing the procurement Programs, including,
385+4 but not limited to, the costs of administering and evaluating
386+5 the Program through an automatic adjustment clause tariff.
387+6 Section 60. Extenuating circumstances. If, at any time,
388+7 approved applications for the Program exceed funds collected
389+8 by the electric utility or would cause the Agency to exceed the
390+9 limitation on the amount of renewable energy resources that
391+10 may be procured, then the Agency may consider future
392+11 uncommitted funds to be reserved for these contracts on a
393+12 first-come, first-served basis.
394+13 Notwithstanding other requirements of this Act, no
395+14 modification shall be required to Program contracts if they
396+15 were already executed prior to the establishment, approval,
397+16 and implementation of new contract forms as a result of this
398+17 Act.
399+18 Section 65. Illinois Power Agency administration.
400+19 (a) The Agency shall strive to minimize administrative
401+20 expenses in the implementation of the Program. The Agency
402+21 shall be authorized to retain one or more experts or expert
403+22 consulting firms to develop, administer, implement, operate,
404+23 and evaluate the Program and the Agency shall retain the
405+24 consultant or consultants in the same manner, to the extent
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454-1 incentive Programs or similar initiatives. This work may
455-2 include developing papers and reports, hosting regional and
456-3 national conferences, and other work deemed necessary by the
457-4 Agency to position the State as a national leader in renewable
458-5 energy incentive Program development and administration.
459-6 (d) The Agency and its consultant or consultants shall
460-7 monitor block activity, share Program activity with
461-8 stakeholders, and conduct quarterly meetings to discuss
462-9 Program activity and market conditions. If necessary, the
463-10 Agency may make prospective administrative adjustments to
464-11 Program design, such as making adjustments to purchase prices
465-12 as necessary to achieve the goals of this Act. Program
466-13 modifications to any block price that do not deviate from the
467-14 Commission's approved value by more than 10% shall take effect
468-15 immediately and are not subject to Commission review and
469-16 approval. Program modifications to any block price that
470-17 deviate more than 10% from the Commission's approved value
471-18 shall be approved by the Commission as a long-term plan
472-19 amendment. The Agency shall consider stakeholder feedback when
473-20 making adjustments to Program design and shall notify
474-21 stakeholders in advance of any planned changes.
475-22 (e) The Agency shall schedule regular meetings with
476-23 representatives of the Attorney General, the Commission,
477-24 consumer protection groups, and other interested stakeholders
478-25 to share relevant information about consumer protection,
479-26 project compliance, and complaints received.
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416+1 practicable, as the Agency retains others to administer
417+2 provisions of this Act, including, but not limited to, the
418+3 procurement administrator.
419+4 (b) If the Agency becomes aware of a circumstance that
420+5 would warrant consideration of a mid-year renewable energy
421+6 credit price adjustment, it shall conduct modeling of
422+7 renewable energy credit pricing dynamics, in order to provide
423+8 notice to stakeholders, and conduct a stakeholder feedback
424+9 process before finalizing any changes. In line with the
425+10 Illinois Power Agency Act, Program modifications to any block
426+11 price that does not deviate from the Commission's approved
427+12 value by more than 10% shall take effect immediately and are
428+13 not subject to Commission review and approval. Program
429+14 modifications to any block price that deviate more than 10%
430+15 from the Commission's approved value shall be approved by the
431+16 Commission as a long-term plan amendment under Section
432+17 16-111.5 of the Public Utilities Act.
433+18 (c) In addition to covering the costs of Program
434+19 administration, the Agency, in conjunction with its Program
435+20 Administrator, may also use the proceeds of such fees charged
436+21 to participating firms to support public education, labor
437+22 training, and ongoing regional and national coordination with
438+23 nonprofit organizations, public bodies, and others engaged in
439+24 the implementation of geothermal heating and cooling system
440+25 incentive Programs or similar initiatives. This work may
441+26 include developing papers and reports, hosting regional and
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490-1 (f) To the extent that complaints received implicate the
491-2 jurisdiction of the Attorney General, the Commission, or
492-3 local, State, or federal law enforcement, the Agency shall
493-4 also refer complaints to those entities as appropriate.
494-5 Section 70. Prohibition of double claiming geothermal
495-6 renewable energy credits. Geothermal renewable energy credits
496-7 retired by obligated utilities for compliance with the Program
497-8 are only valid for compliance if those geothermal renewable
498-9 energy credits have not been previously retired by another
499-10 entity that is not the obligated utility on any tracking
500-11 system, carbon registry, or other accounting mechanism at any
501-12 time. Additionally, geothermal renewable energy credits
502-13 retired by obligated utilities for compliance with the Program
503-14 are only valid for compliance if those geothermal renewable
504-15 energy credits have not been used to substantiate a public
505-16 emissions or energy usage claim by any other another entity
506-17 that is not the obligated utility, of any type and at any time,
507-18 whether or not such geothermal renewable energy credits were
508-19 actually retired on a tracking system, registry, or other
509-20 accounting mechanism at the time of the public emissions-based
510-21 claim. To that end, geothermal renewable energy credits
511-22 generated for compliance with the Program are valid only if
512-23 retired once, and claimed once, by the obligated utility.
513-24 Section 75. Cost recovery of generating units. In order to
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452+1 national conferences, and other work deemed necessary by the
453+2 Agency to position the State as a national leader in renewable
454+3 energy incentive Program development and administration.
455+4 (d) The Agency and its consultant or consultants shall
456+5 monitor block activity, share Program activity with
457+6 stakeholders and conduct quarterly meetings to discuss Program
458+7 activity and market conditions. If necessary, the Agency may
459+8 make prospective administrative adjustments to Program design,
460+9 such as making adjustments to purchase prices as necessary to
461+10 achieve the goals of this Act. Program modifications to any
462+11 block price that do not deviate from the Commission's approved
463+12 value by more than 10% shall take effect immediately and are
464+13 not subject to Commission review and approval. Program
465+14 modifications to any block price that deviate more than 10%
466+15 from the Commission's approved value shall be approved by the
467+16 Commission as a long-term plan amendment. The Agency shall
468+17 consider stakeholder feedback when making adjustments to
469+18 Program design and shall notify stakeholders in advance of any
470+19 planned changes.
471+20 (e) The Agency shall schedule regular meetings with
472+21 representatives of the Attorney General, the Commission,
473+22 consumer protection groups, and other interested stakeholders
474+23 to share relevant information about consumer protection,
475+24 project compliance, and complaints received.
476+25 (f) To the extent that complaints received implicate the
477+26 jurisdiction of the Attorney General, the Commission, or
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524-1 promote the competitive development of geothermal heating and
525-2 cooling systems in furtherance of this State's interest in the
526-3 health, safety, and welfare of its residents, renewable energy
527-4 credits from geothermal heating and cooling systems shall not
528-5 be eligible for purchase under this Act if the credits are
529-6 sourced from a geothermal heating and cooling system for which
530-7 costs are being recovered on or after the effective date of
531-8 this Act through rates regulated by this State or any other
532-9 state.
533-10 Section 900.
534- The Illinois Power Agency Act is amended by
535-11 changing Section 1-10 as follows:
536-12 (20 ILCS 3855/1-10)
537-13 Sec. 1-10. Definitions.
538-14 "Agency" means the Illinois Power Agency.
539-15 "Agency loan agreement" means any agreement pursuant to
540-16 which the Illinois Finance Authority agrees to loan the
541-17 proceeds of revenue bonds issued with respect to a project to
542-18 the Agency upon terms providing for loan repayment
543-19 installments at least sufficient to pay when due all principal
544-20 of, interest and premium, if any, on those revenue bonds, and
545-21 providing for maintenance, insurance, and other matters in
546-22 respect of the project.
547-23 "Authority" means the Illinois Finance Authority.
548-24 "Brownfield site photovoltaic project" means photovoltaics
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488+1 local, State, or federal law enforcement, the Agency shall
489+2 also refer complaints to those entities as appropriate.
490+3 Section 70. Prohibition of double claiming geothermal
491+4 renewable energy credits. Geothermal renewable energy credits
492+5 retired by obligated utilities for compliance with the Program
493+6 are only valid for compliance if those geothermal renewable
494+7 energy credits have not been previously retired by another
495+8 entity that is not the obligated utility on any tracking
496+9 system, carbon registry, or other accounting mechanism at any
497+10 time. Additionally, geothermal renewable energy credits
498+11 retired by obligated utilities for compliance with the Program
499+12 are only valid for compliance if those geothermal renewable
500+13 energy credits have not been used to substantiate a public
501+14 emissions or energy usage claim by any other another entity
502+15 that is not the obligated utility, of any type and at any time,
503+16 whether or not such geothermal renewable energy credits were
504+17 actually retired on a tracking system, registry, or other
505+18 accounting mechanism at the time of the public emissions-based
506+19 claim. To that end, geothermal renewable energy credits
507+20 generated for compliance with the Program are valid only if
508+21 retired once, and claimed once, by the obligated utility.
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559-1 that are either:
560-2 (1) interconnected to an electric utility as defined
561-3 in this Section, a municipal utility as defined in this
562-4 Section, a public utility as defined in Section 3-105 of
563-5 the Public Utilities Act, or an electric cooperative as
564-6 defined in Section 3-119 of the Public Utilities Act and
565-7 located at a site that is regulated by any of the following
566-8 entities under the following programs:
567-9 (A) the United States Environmental Protection
568-10 Agency under the federal Comprehensive Environmental
569-11 Response, Compensation, and Liability Act of 1980, as
570-12 amended;
571-13 (B) the United States Environmental Protection
572-14 Agency under the Corrective Action Program of the
573-15 federal Resource Conservation and Recovery Act, as
574-16 amended;
575-17 (C) the Illinois Environmental Protection Agency
576-18 under the Illinois Site Remediation Program; or
577-19 (D) the Illinois Environmental Protection Agency
578-20 under the Illinois Solid Waste Program; or
579-21 (2) located at the site of a coal mine that has
580-22 permanently ceased coal production, permanently halted any
581-23 re-mining operations, and is no longer accepting any coal
582-24 combustion residues; has both completed all clean-up and
583-25 remediation obligations under the federal Surface Mining
584-26 and Reclamation Act of 1977 and all applicable Illinois
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595-1 rules and any other clean-up, remediation, or ongoing
596-2 monitoring to safeguard the health and well-being of the
597-3 people of the State of Illinois, as well as demonstrated
598-4 compliance with all applicable federal and State
599-5 environmental rules and regulations, including, but not
600-6 limited, to 35 Ill. Adm. Code Part 845 and any rules for
601-7 historic fill of coal combustion residuals, including any
602-8 rules finalized in Subdocket A of Illinois Pollution
603-9 Control Board docket R2020-019.
604-10 "Clean coal facility" means an electric generating
605-11 facility that uses primarily coal as a feedstock and that
606-12 captures and sequesters carbon dioxide emissions at the
607-13 following levels: at least 50% of the total carbon dioxide
608-14 emissions that the facility would otherwise emit if, at the
609-15 time construction commences, the facility is scheduled to
610-16 commence operation before 2016, at least 70% of the total
611-17 carbon dioxide emissions that the facility would otherwise
612-18 emit if, at the time construction commences, the facility is
613-19 scheduled to commence operation during 2016 or 2017, and at
614-20 least 90% of the total carbon dioxide emissions that the
615-21 facility would otherwise emit if, at the time construction
616-22 commences, the facility is scheduled to commence operation
617-23 after 2017. The power block of the clean coal facility shall
618-24 not exceed allowable emission rates for sulfur dioxide,
619-25 nitrogen oxides, carbon monoxide, particulates and mercury for
620-26 a natural gas-fired combined-cycle facility the same size as
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631-1 and in the same location as the clean coal facility at the time
632-2 the clean coal facility obtains an approved air permit. All
633-3 coal used by a clean coal facility shall have high volatile
634-4 bituminous rank and greater than 1.7 pounds of sulfur per
635-5 million Btu content, unless the clean coal facility does not
636-6 use gasification technology and was operating as a
637-7 conventional coal-fired electric generating facility on June
638-8 1, 2009 (the effective date of Public Act 95-1027).
639-9 "Clean coal SNG brownfield facility" means a facility that
640-10 (1) has commenced construction by July 1, 2015 on an urban
641-11 brownfield site in a municipality with at least 1,000,000
642-12 residents; (2) uses a gasification process to produce
643-13 substitute natural gas; (3) uses coal as at least 50% of the
644-14 total feedstock over the term of any sourcing agreement with a
645-15 utility and the remainder of the feedstock may be either
646-16 petroleum coke or coal, with all such coal having a high
647-17 bituminous rank and greater than 1.7 pounds of sulfur per
648-18 million Btu content unless the facility reasonably determines
649-19 that it is necessary to use additional petroleum coke to
650-20 deliver additional consumer savings, in which case the
651-21 facility shall use coal for at least 35% of the total feedstock
652-22 over the term of any sourcing agreement; and (4) captures and
653-23 sequesters at least 85% of the total carbon dioxide emissions
654-24 that the facility would otherwise emit.
655-25 "Clean coal SNG facility" means a facility that uses a
656-26 gasification process to produce substitute natural gas, that
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667-1 sequesters at least 90% of the total carbon dioxide emissions
668-2 that the facility would otherwise emit, that uses at least 90%
669-3 coal as a feedstock, with all such coal having a high
670-4 bituminous rank and greater than 1.7 pounds of sulfur per
671-5 million Btu content, and that has a valid and effective permit
672-6 to construct emission sources and air pollution control
673-7 equipment and approval with respect to the federal regulations
674-8 for Prevention of Significant Deterioration of Air Quality
675-9 (PSD) for the plant pursuant to the federal Clean Air Act;
676-10 provided, however, a clean coal SNG brownfield facility shall
677-11 not be a clean coal SNG facility.
678-12 "Clean energy" means energy generation that is 90% or
679-13 greater free of carbon dioxide emissions.
680-14 "Commission" means the Illinois Commerce Commission.
681-15 "Community renewable generation project" means an electric
682-16 generating facility that:
683-17 (1) is powered by wind, solar thermal energy,
684-18 photovoltaic cells or panels, biodiesel, crops and
685-19 untreated and unadulterated organic waste biomass, and
686-20 hydropower that does not involve new construction of dams;
687-21 (2) is interconnected at the distribution system level
688-22 of an electric utility as defined in this Section, a
689-23 municipal utility as defined in this Section that owns or
690-24 operates electric distribution facilities, a public
691-25 utility as defined in Section 3-105 of the Public
692-26 Utilities Act, or an electric cooperative, as defined in
693-
694-
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703-1 Section 3-119 of the Public Utilities Act;
704-2 (3) credits the value of electricity generated by the
705-3 facility to the subscribers of the facility; and
706-4 (4) is limited in nameplate capacity to less than or
707-5 equal to 5,000 kilowatts.
708-6 "Costs incurred in connection with the development and
709-7 construction of a facility" means:
710-8 (1) the cost of acquisition of all real property,
711-9 fixtures, and improvements in connection therewith and
712-10 equipment, personal property, and other property, rights,
713-11 and easements acquired that are deemed necessary for the
714-12 operation and maintenance of the facility;
715-13 (2) financing costs with respect to bonds, notes, and
716-14 other evidences of indebtedness of the Agency;
717-15 (3) all origination, commitment, utilization,
718-16 facility, placement, underwriting, syndication, credit
719-17 enhancement, and rating agency fees;
720-18 (4) engineering, design, procurement, consulting,
721-19 legal, accounting, title insurance, survey, appraisal,
722-20 escrow, trustee, collateral agency, interest rate hedging,
723-21 interest rate swap, capitalized interest, contingency, as
724-22 required by lenders, and other financing costs, and other
725-23 expenses for professional services; and
726-24 (5) the costs of plans, specifications, site study and
727-25 investigation, installation, surveys, other Agency costs
728-26 and estimates of costs, and other expenses necessary or
729-
730-
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739-1 incidental to determining the feasibility of any project,
740-2 together with such other expenses as may be necessary or
741-3 incidental to the financing, insuring, acquisition, and
742-4 construction of a specific project and starting up,
743-5 commissioning, and placing that project in operation.
744-6 "Delivery services" has the same definition as found in
745-7 Section 16-102 of the Public Utilities Act.
746-8 "Delivery year" means the consecutive 12-month period
747-9 beginning June 1 of a given year and ending May 31 of the
748-10 following year.
749-11 "Department" means the Department of Commerce and Economic
750-12 Opportunity.
751-13 "Director" means the Director of the Illinois Power
752-14 Agency.
753-15 "Demand-response" means measures that decrease peak
754-16 electricity demand or shift demand from peak to off-peak
755-17 periods.
756-18 "Distributed renewable energy generation device" means a
757-19 device that is:
758-20 (1) powered by wind, solar thermal energy,
759-21 photovoltaic cells or panels, biodiesel, crops and
760-22 untreated and unadulterated organic waste biomass, tree
761-23 waste, and hydropower that does not involve new
762-24 construction of dams, waste heat to power systems, or
763-25 qualified combined heat and power systems;
764-26 (2) interconnected at the distribution system level of
765-
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775-1 either an electric utility as defined in this Section, a
776-2 municipal utility as defined in this Section that owns or
777-3 operates electric distribution facilities, or a rural
778-4 electric cooperative as defined in Section 3-119 of the
779-5 Public Utilities Act;
780-6 (3) located on the customer side of the customer's
781-7 electric meter and is primarily used to offset that
782-8 customer's electricity load; and
783-9 (4) (blank).
784-10 "Energy efficiency" means measures that reduce the amount
785-11 of electricity or natural gas consumed in order to achieve a
786-12 given end use. "Energy efficiency" includes voltage
787-13 optimization measures that optimize the voltage at points on
788-14 the electric distribution voltage system and thereby reduce
789-15 electricity consumption by electric customers' end use
790-16 devices. "Energy efficiency" also includes measures that
791-17 reduce the total Btus of electricity, natural gas, and other
792-18 fuels needed to meet the end use or uses.
793-19 "Electric utility" has the same definition as found in
794-20 Section 16-102 of the Public Utilities Act.
795-21 "Equity investment eligible community" or "eligible
796-22 community" are synonymous and mean the geographic areas
797-23 throughout Illinois which would most benefit from equitable
798-24 investments by the State designed to combat discrimination.
799-25 Specifically, the eligible communities shall be defined as the
800-26 following areas:
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811-1 (1) R3 Areas as established pursuant to Section 10-40
812-2 of the Cannabis Regulation and Tax Act, where residents
813-3 have historically been excluded from economic
814-4 opportunities, including opportunities in the energy
815-5 sector; and
816-6 (2) environmental justice communities, as defined by
817-7 the Illinois Power Agency pursuant to the Illinois Power
818-8 Agency Act, where residents have historically been subject
819-9 to disproportionate burdens of pollution, including
820-10 pollution from the energy sector.
821-11 "Equity eligible persons" or "eligible persons" means
822-12 persons who would most benefit from equitable investments by
823-13 the State designed to combat discrimination, specifically:
824-14 (1) persons who graduate from or are current or former
825-15 participants in the Clean Jobs Workforce Network Program,
826-16 the Clean Energy Contractor Incubator Program, the
827-17 Illinois Climate Works Preapprenticeship Program,
828-18 Returning Residents Clean Jobs Training Program, or the
829-19 Clean Energy Primes Contractor Accelerator Program, and
830-20 the solar training pipeline and multi-cultural jobs
831-21 program created in paragraphs (a)(1) and (a)(3) of Section
832-22 16-208.12 of the Public Utilities Act;
833-23 (2) persons who are graduates of or currently enrolled
834-24 in the foster care system;
835-25 (3) persons who were formerly incarcerated;
836-26 (4) persons whose primary residence is in an equity
837-
838-
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847-1 investment eligible community.
848-2 "Equity eligible contractor" means a business that is
849-3 majority-owned by eligible persons, or a nonprofit or
850-4 cooperative that is majority-governed by eligible persons, or
851-5 is a natural person that is an eligible person offering
852-6 personal services as an independent contractor.
853-7 "Facility" means an electric generating unit or a
854-8 co-generating unit that produces electricity along with
855-9 related equipment necessary to connect the facility to an
856-10 electric transmission or distribution system.
857-11 "General contractor" means the entity or organization with
858-12 main responsibility for the building of a construction project
859-13 and who is the party signing the prime construction contract
860-14 for the project.
861-15 "Governmental aggregator" means one or more units of local
862-16 government that individually or collectively procure
863-17 electricity to serve residential retail electrical loads
864-18 located within its or their jurisdiction.
865-19 "High voltage direct current converter station" means the
866-20 collection of equipment that converts direct current energy
867-21 from a high voltage direct current transmission line into
868-22 alternating current using Voltage Source Conversion technology
869-23 and that is interconnected with transmission or distribution
870-24 assets located in Illinois.
871-25 "High voltage direct current renewable energy credit"
872-26 means a renewable energy credit associated with a renewable
873-
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876-
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883-1 energy resource where the renewable energy resource has
884-2 entered into a contract to transmit the energy associated with
885-3 such renewable energy credit over high voltage direct current
886-4 transmission facilities.
887-5 "High voltage direct current transmission facilities"
888-6 means the collection of installed equipment that converts
889-7 alternating current energy in one location to direct current
890-8 and transmits that direct current energy to a high voltage
891-9 direct current converter station using Voltage Source
892-10 Conversion technology. "High voltage direct current
893-11 transmission facilities" includes the high voltage direct
894-12 current converter station itself and associated high voltage
895-13 direct current transmission lines. Notwithstanding the
896-14 preceding, after September 15, 2021 (the effective date of
897-15 Public Act 102-662), an otherwise qualifying collection of
898-16 equipment does not qualify as high voltage direct current
899-17 transmission facilities unless its developer entered into a
900-18 project labor agreement, is capable of transmitting
901-19 electricity at 525kv with an Illinois converter station
902-20 located and interconnected in the region of the PJM
903-21 Interconnection, LLC, and the system does not operate as a
904-22 public utility, as that term is defined in Section 3-105 of the
905-23 Public Utilities Act.
906-24 "Hydropower" means any method of electricity generation or
907-25 storage that results from the flow of water, including
908-26 impoundment facilities, diversion facilities, and pumped
909-
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919-1 storage facilities.
920-2 "Index price" means the real-time energy settlement price
921-3 at the applicable Illinois trading hub, such as PJM-NIHUB or
922-4 MISO-IL, for a given settlement period.
923-5 "Indexed renewable energy credit" means a tradable credit
924-6 that represents the environmental attributes of one megawatt
925-7 hour of energy produced from a renewable energy resource, the
926-8 price of which shall be calculated by subtracting the strike
927-9 price offered by a new utility-scale wind project or a new
928-10 utility-scale photovoltaic project from the index price in a
929-11 given settlement period.
930-12 "Indexed renewable energy credit counterparty" has the
931-13 same meaning as "public utility" as defined in Section 3-105
932-14 of the Public Utilities Act.
933-15 "Local government" means a unit of local government as
934-16 defined in Section 1 of Article VII of the Illinois
935-17 Constitution.
936-18 "Modernized" or "retooled" means the construction, repair,
937-19 maintenance, or significant expansion of turbines and existing
938-20 hydropower dams.
939-21 "Municipality" means a city, village, or incorporated
940-22 town.
941-23 "Municipal utility" means a public utility owned and
942-24 operated by any subdivision or municipal corporation of this
943-25 State.
944-26 "Nameplate capacity" means the aggregate inverter
945-
946-
947-
948-
949-
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955-1 nameplate capacity in kilowatts AC.
956-2 "Person" means any natural person, firm, partnership,
957-3 corporation, either domestic or foreign, company, association,
958-4 limited liability company, joint stock company, or association
959-5 and includes any trustee, receiver, assignee, or personal
960-6 representative thereof.
961-7 "Project" means the planning, bidding, and construction of
962-8 a facility.
963-9 "Project labor agreement" means a pre-hire collective
964-10 bargaining agreement that covers all terms and conditions of
965-11 employment on a specific construction project and must include
966-12 the following:
967-13 (1) provisions establishing the minimum hourly wage
968-14 for each class of labor organization employee;
969-15 (2) provisions establishing the benefits and other
970-16 compensation for each class of labor organization
971-17 employee;
972-18 (3) provisions establishing that no strike or disputes
973-19 will be engaged in by the labor organization employees;
974-20 (4) provisions establishing that no lockout or
975-21 disputes will be engaged in by the general contractor
976-22 building the project; and
977-23 (5) provisions for minorities and women, as defined
978-24 under the Business Enterprise for Minorities, Women, and
979-25 Persons with Disabilities Act, setting forth goals for
980-26 apprenticeship hours to be performed by minorities and
981-
982-
983-
984-
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991-1 women and setting forth goals for total hours to be
992-2 performed by underrepresented minorities and women.
993-3 A labor organization and the general contractor building
994-4 the project shall have the authority to include other terms
995-5 and conditions as they deem necessary.
996-6 "Public utility" has the same definition as found in
997-7 Section 3-105 of the Public Utilities Act.
998-8 "Qualified combined heat and power systems" means systems
999-9 that, either simultaneously or sequentially, produce
1000-10 electricity and useful thermal energy from a single fuel
1001-11 source. Such systems are eligible for "renewable energy
1002-12 credits" in an amount equal to its total energy output where a
1003-13 renewable fuel is consumed or in an amount equal to the net
1004-14 reduction in nonrenewable fuel consumed on a total energy
1005-15 output basis.
1006-16 "Real property" means any interest in land together with
1007-17 all structures, fixtures, and improvements thereon, including
1008-18 lands under water and riparian rights, any easements,
1009-19 covenants, licenses, leases, rights-of-way, uses, and other
1010-20 interests, together with any liens, judgments, mortgages, or
1011-21 other claims or security interests related to real property.
1012-22 "Renewable energy credit" means a tradable credit that
1013-23 represents the environmental attributes of one megawatt hour
1014-24 of energy produced from a renewable energy resource.
1015-25 "Renewable energy resources" includes energy and its
1016-26 associated renewable energy credit or renewable energy credits
1017-
1018-
1019-
1020-
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1027-1 from wind, solar thermal energy, photovoltaic cells and
1028-2 panels, biodiesel, anaerobic digestion, crops and untreated
1029-3 and unadulterated organic waste biomass, and hydropower that
1030-4 does not involve new construction of dams, waste heat to power
1031-5 systems, or qualified combined heat and power systems, or
1032-6 geothermal heating and cooling systems as defined in the
1033-7 Geothermal Homes and Businesses Act. For purposes of this Act,
1034-8 landfill gas produced in the State is considered a renewable
1035-9 energy resource. "Renewable energy resources" does not include
1036-10 the incineration or burning of tires, garbage, general
1037-11 household, institutional, and commercial waste, industrial
1038-12 lunchroom or office waste, landscape waste, railroad
1039-13 crossties, utility poles, or construction or demolition
1040-14 debris, other than untreated and unadulterated waste wood.
1041-15 "Renewable energy resources" also includes high voltage direct
1042-16 current renewable energy credits and the associated energy
1043-17 converted to alternating current by a high voltage direct
1044-18 current converter station to the extent that: (1) the
1045-19 generator of such renewable energy resource contracted with a
1046-20 third party to transmit the energy over the high voltage
1047-21 direct current transmission facilities, and (2) the
1048-22 third-party contracting for delivery of renewable energy
1049-23 resources over the high voltage direct current transmission
1050-24 facilities have ownership rights over the unretired associated
1051-25 high voltage direct current renewable energy credit.
1052-26 "Retail customer" has the same definition as found in
1053-
1054-
1055-
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1063-1 Section 16-102 of the Public Utilities Act.
1064-2 "Revenue bond" means any bond, note, or other evidence of
1065-3 indebtedness issued by the Authority, the principal and
1066-4 interest of which is payable solely from revenues or income
1067-5 derived from any project or activity of the Agency.
1068-6 "Sequester" means permanent storage of carbon dioxide by
1069-7 injecting it into a saline aquifer, a depleted gas reservoir,
1070-8 or an oil reservoir, directly or through an enhanced oil
1071-9 recovery process that may involve intermediate storage,
1072-10 regardless of whether these activities are conducted by a
1073-11 clean coal facility, a clean coal SNG facility, a clean coal
1074-12 SNG brownfield facility, or a party with which a clean coal
1075-13 facility, clean coal SNG facility, or clean coal SNG
1076-14 brownfield facility has contracted for such purposes.
1077-15 "Service area" has the same definition as found in Section
1078-16 16-102 of the Public Utilities Act.
1079-17 "Settlement period" means the period of time utilized by
1080-18 MISO and PJM and their successor organizations as the basis
1081-19 for settlement calculations in the real-time energy market.
1082-20 "Sourcing agreement" means (i) in the case of an electric
1083-21 utility, an agreement between the owner of a clean coal
1084-22 facility and such electric utility, which agreement shall have
1085-23 terms and conditions meeting the requirements of paragraph (3)
1086-24 of subsection (d) of Section 1-75, (ii) in the case of an
1087-25 alternative retail electric supplier, an agreement between the
1088-26 owner of a clean coal facility and such alternative retail
1089-
1090-
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1099-1 electric supplier, which agreement shall have terms and
1100-2 conditions meeting the requirements of Section 16-115(d)(5) of
1101-3 the Public Utilities Act, and (iii) in case of a gas utility,
1102-4 an agreement between the owner of a clean coal SNG brownfield
1103-5 facility and the gas utility, which agreement shall have the
1104-6 terms and conditions meeting the requirements of subsection
1105-7 (h-1) of Section 9-220 of the Public Utilities Act.
1106-8 "Strike price" means a contract price for energy and
1107-9 renewable energy credits from a new utility-scale wind project
1108-10 or a new utility-scale photovoltaic project.
1109-11 "Subscriber" means a person who (i) takes delivery service
1110-12 from an electric utility, and (ii) has a subscription of no
1111-13 less than 200 watts to a community renewable generation
1112-14 project that is located in the electric utility's service
1113-15 area. No subscriber's subscriptions may total more than 40% of
1114-16 the nameplate capacity of an individual community renewable
1115-17 generation project. Entities that are affiliated by virtue of
1116-18 a common parent shall not represent multiple subscriptions
1117-19 that total more than 40% of the nameplate capacity of an
1118-20 individual community renewable generation project.
1119-21 "Subscription" means an interest in a community renewable
1120-22 generation project expressed in kilowatts, which is sized
1121-23 primarily to offset part or all of the subscriber's
1122-24 electricity usage.
1123-25 "Substitute natural gas" or "SNG" means a gas manufactured
1124-26 by gasification of hydrocarbon feedstock, which is
1125-
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1135-1 substantially interchangeable in use and distribution with
1136-2 conventional natural gas.
1137-3 "Total resource cost test" or "TRC test" means a standard
1138-4 that is met if, for an investment in energy efficiency or
1139-5 demand-response measures, the benefit-cost ratio is greater
1140-6 than one. The benefit-cost ratio is the ratio of the net
1141-7 present value of the total benefits of the program to the net
1142-8 present value of the total costs as calculated over the
1143-9 lifetime of the measures. A total resource cost test compares
1144-10 the sum of avoided electric utility costs, representing the
1145-11 benefits that accrue to the system and the participant in the
1146-12 delivery of those efficiency measures and including avoided
1147-13 costs associated with reduced use of natural gas or other
1148-14 fuels, avoided costs associated with reduced water
1149-15 consumption, and avoided costs associated with reduced
1150-16 operation and maintenance costs, as well as other quantifiable
1151-17 societal benefits, to the sum of all incremental costs of
1152-18 end-use measures that are implemented due to the program
1153-19 (including both utility and participant contributions), plus
1154-20 costs to administer, deliver, and evaluate each demand-side
1155-21 program, to quantify the net savings obtained by substituting
1156-22 the demand-side program for supply resources. In calculating
1157-23 avoided costs of power and energy that an electric utility
1158-24 would otherwise have had to acquire, reasonable estimates
1159-25 shall be included of financial costs likely to be imposed by
1160-26 future regulations and legislation on emissions of greenhouse
1161-
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1171-1 gases. In discounting future societal costs and benefits for
1172-2 the purpose of calculating net present values, a societal
1173-3 discount rate based on actual, long-term Treasury bond yields
1174-4 should be used. Notwithstanding anything to the contrary, the
1175-5 TRC test shall not include or take into account a calculation
1176-6 of market price suppression effects or demand reduction
1177-7 induced price effects.
1178-8 "Utility-scale solar project" means an electric generating
1179-9 facility that:
1180-10 (1) generates electricity using photovoltaic cells;
1181-11 and
1182-12 (2) has a nameplate capacity that is greater than
1183-13 5,000 kilowatts.
1184-14 "Utility-scale wind project" means an electric generating
1185-15 facility that:
1186-16 (1) generates electricity using wind; and
1187-17 (2) has a nameplate capacity that is greater than
1188-18 5,000 kilowatts.
1189-19 "Waste Heat to Power Systems" means systems that capture
1190-20 and generate electricity from energy that would otherwise be
1191-21 lost to the atmosphere without the use of additional fuel.
1192-22 "Zero emission credit" means a tradable credit that
1193-23 represents the environmental attributes of one megawatt hour
1194-24 of energy produced from a zero emission facility.
1195-25 "Zero emission facility" means a facility that: (1) is
1196-26 fueled by nuclear power; and (2) is interconnected with PJM
1197-
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1207-1 Interconnection, LLC or the Midcontinent Independent System
1208-2 Operator, Inc., or their successors.
1209-3 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
1210-4 103-380, eff. 1-1-24.)
1211-5 Section 905.
1212- The Public Utilities Act is amended by
1213-6 changing Sections 16-108 and 16-111.5 as follows:
1214-7 (220 ILCS 5/16-108)
1215-8 Sec. 16-108. Recovery of costs associated with the
1216-9 provision of delivery and other services.
1217-10 (a) An electric utility shall file a delivery services
1218-11 tariff with the Commission at least 210 days prior to the date
1219-12 that it is required to begin offering such services pursuant
1220-13 to this Act. An electric utility shall provide the components
1221-14 of delivery services that are subject to the jurisdiction of
1222-15 the Federal Energy Regulatory Commission at the same prices,
1223-16 terms and conditions set forth in its applicable tariff as
1224-17 approved or allowed into effect by that Commission. The
1225-18 Commission shall otherwise have the authority pursuant to
1226-19 Article IX to review, approve, and modify the prices, terms
1227-20 and conditions of those components of delivery services not
1228-21 subject to the jurisdiction of the Federal Energy Regulatory
1229-22 Commission, including the authority to determine the extent to
1230-23 which such delivery services should be offered on an unbundled
1231-24 basis. In making any such determination the Commission shall
1232-
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1242-1 consider, at a minimum, the effect of additional unbundling on
1243-2 (i) the objective of just and reasonable rates, (ii) electric
1244-3 utility employees, and (iii) the development of competitive
1245-4 markets for electric energy services in Illinois.
1246-5 (b) The Commission shall enter an order approving, or
1247-6 approving as modified, the delivery services tariff no later
1248-7 than 30 days prior to the date on which the electric utility
1249-8 must commence offering such services. The Commission may
1250-9 subsequently modify such tariff pursuant to this Act.
1251-10 (c) The electric utility's tariffs shall define the
1252-11 classes of its customers for purposes of delivery services
1253-12 charges. Delivery services shall be priced and made available
1254-13 to all retail customers electing delivery services in each
1255-14 such class on a nondiscriminatory basis regardless of whether
1256-15 the retail customer chooses the electric utility, an affiliate
1257-16 of the electric utility, or another entity as its supplier of
1258-17 electric power and energy. Charges for delivery services shall
1259-18 be cost based, and shall allow the electric utility to recover
1260-19 the costs of providing delivery services through its charges
1261-20 to its delivery service customers that use the facilities and
1262-21 services associated with such costs. Such costs shall include
1263-22 the costs of owning, operating and maintaining transmission
1264-23 and distribution facilities. The Commission shall also be
1265-24 authorized to consider whether, and if so to what extent, the
1266-25 following costs are appropriately included in the electric
1267-26 utility's delivery services rates: (i) the costs of that
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1278-1 portion of generation facilities used for the production and
1279-2 absorption of reactive power in order that retail customers
1280-3 located in the electric utility's service area can receive
1281-4 electric power and energy from suppliers other than the
1282-5 electric utility, and (ii) the costs associated with the use
1283-6 and redispatch of generation facilities to mitigate
1284-7 constraints on the transmission or distribution system in
1285-8 order that retail customers located in the electric utility's
1286-9 service area can receive electric power and energy from
1287-10 suppliers other than the electric utility. Nothing in this
1288-11 subsection shall be construed as directing the Commission to
1289-12 allocate any of the costs described in (i) or (ii) that are
1290-13 found to be appropriately included in the electric utility's
1291-14 delivery services rates to any particular customer group or
1292-15 geographic area in setting delivery services rates.
1293-16 (d) The Commission shall establish charges, terms and
1294-17 conditions for delivery services that are just and reasonable
1295-18 and shall take into account customer impacts when establishing
1296-19 such charges. In establishing charges, terms and conditions
1297-20 for delivery services, the Commission shall take into account
1298-21 voltage level differences. A retail customer shall have the
1299-22 option to request to purchase electric service at any delivery
1300-23 service voltage reasonably and technically feasible from the
1301-24 electric facilities serving that customer's premises provided
1302-25 that there are no significant adverse impacts upon system
1303-26 reliability or system efficiency. A retail customer shall also
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1314-1 have the option to request to purchase electric service at any
1315-2 point of delivery that is reasonably and technically feasible
1316-3 provided that there are no significant adverse impacts on
1317-4 system reliability or efficiency. Such requests shall not be
1318-5 unreasonably denied.
1319-6 (e) Electric utilities shall recover the costs of
1320-7 installing, operating or maintaining facilities for the
1321-8 particular benefit of one or more delivery services customers,
1322-9 including without limitation any costs incurred in complying
1323-10 with a customer's request to be served at a different voltage
1324-11 level, directly from the retail customer or customers for
1325-12 whose benefit the costs were incurred, to the extent such
1326-13 costs are not recovered through the charges referred to in
1327-14 subsections (c) and (d) of this Section.
1328-15 (f) An electric utility shall be entitled but not required
1329-16 to implement transition charges in conjunction with the
1330-17 offering of delivery services pursuant to Section 16-104. If
1331-18 an electric utility implements transition charges, it shall
1332-19 implement such charges for all delivery services customers and
1333-20 for all customers described in subsection (h), but shall not
1334-21 implement transition charges for power and energy that a
1335-22 retail customer takes from cogeneration or self-generation
1336-23 facilities located on that retail customer's premises, if such
1337-24 facilities meet the following criteria:
1338-25 (i) the cogeneration or self-generation facilities
1339-26 serve a single retail customer and are located on that
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1350-1 retail customer's premises (for purposes of this
1351-2 subparagraph and subparagraph (ii), an industrial or
1352-3 manufacturing retail customer and a third party contractor
1353-4 that is served by such industrial or manufacturing
1354-5 customer through such retail customer's own electrical
1355-6 distribution facilities under the circumstances described
1356-7 in subsection (vi) of the definition of "alternative
1357-8 retail electric supplier" set forth in Section 16-102,
1358-9 shall be considered a single retail customer);
1359-10 (ii) the cogeneration or self-generation facilities
1360-11 either (A) are sized pursuant to generally accepted
1361-12 engineering standards for the retail customer's electrical
1362-13 load at that premises (taking into account standby or
1363-14 other reliability considerations related to that retail
1364-15 customer's operations at that site) or (B) if the facility
1365-16 is a cogeneration facility located on the retail
1366-17 customer's premises, the retail customer is the thermal
1367-18 host for that facility and the facility has been designed
1368-19 to meet that retail customer's thermal energy requirements
1369-20 resulting in electrical output beyond that retail
1370-21 customer's electrical demand at that premises, comply with
1371-22 the operating and efficiency standards applicable to
1372-23 "qualifying facilities" specified in title 18 Code of
1373-24 Federal Regulations Section 292.205 as in effect on the
1374-25 effective date of this amendatory Act of 1999;
1375-26 (iii) the retail customer on whose premises the
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1386-1 facilities are located either has an exclusive right to
1387-2 receive, and corresponding obligation to pay for, all of
1388-3 the electrical capacity of the facility, or in the case of
1389-4 a cogeneration facility that has been designed to meet the
1390-5 retail customer's thermal energy requirements at that
1391-6 premises, an identified amount of the electrical capacity
1392-7 of the facility, over a minimum 5-year period; and
1393-8 (iv) if the cogeneration facility is sized for the
1394-9 retail customer's thermal load at that premises but
1395-10 exceeds the electrical load, any sales of excess power or
1396-11 energy are made only at wholesale, are subject to the
1397-12 jurisdiction of the Federal Energy Regulatory Commission,
1398-13 and are not for the purpose of circumventing the
1399-14 provisions of this subsection (f).
1400-15 If a generation facility located at a retail customer's
1401-16 premises does not meet the above criteria, an electric utility
1402-17 implementing transition charges shall implement a transition
1403-18 charge until December 31, 2006 for any power and energy taken
1404-19 by such retail customer from such facility as if such power and
1405-20 energy had been delivered by the electric utility. Provided,
1406-21 however, that an industrial retail customer that is taking
1407-22 power from a generation facility that does not meet the above
1408-23 criteria but that is located on such customer's premises will
1409-24 not be subject to a transition charge for the power and energy
1410-25 taken by such retail customer from such generation facility if
1411-26 the facility does not serve any other retail customer and
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1422-1 either was installed on behalf of the customer and for its own
1423-2 use prior to January 1, 1997, or is both predominantly fueled
1424-3 by byproducts of such customer's manufacturing process at such
1425-4 premises and sells or offers an average of 300 megawatts or
1426-5 more of electricity produced from such generation facility
1427-6 into the wholesale market. Such charges shall be calculated as
1428-7 provided in Section 16-102, and shall be collected on each
1429-8 kilowatt-hour delivered under a delivery services tariff to a
1430-9 retail customer from the date the customer first takes
1431-10 delivery services until December 31, 2006 except as provided
1432-11 in subsection (h) of this Section. Provided, however, that an
1433-12 electric utility, other than an electric utility providing
1434-13 service to at least 1,000,000 customers in this State on
1435-14 January 1, 1999, shall be entitled to petition for entry of an
1436-15 order by the Commission authorizing the electric utility to
1437-16 implement transition charges for an additional period ending
1438-17 no later than December 31, 2008. The electric utility shall
1439-18 file its petition with supporting evidence no earlier than 16
1440-19 months, and no later than 12 months, prior to December 31,
1441-20 2006. The Commission shall hold a hearing on the electric
1442-21 utility's petition and shall enter its order no later than 8
1443-22 months after the petition is filed. The Commission shall
1444-23 determine whether and to what extent the electric utility
1445-24 shall be authorized to implement transition charges for an
1446-25 additional period. The Commission may authorize the electric
1447-26 utility to implement transition charges for some or all of the
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1458-1 additional period, and shall determine the mitigation factors
1459-2 to be used in implementing such transition charges; provided,
1460-3 that the Commission shall not authorize mitigation factors
1461-4 less than 110% of those in effect during the 12 months ended
1462-5 December 31, 2006. In making its determination, the Commission
1463-6 shall consider the following factors: the necessity to
1464-7 implement transition charges for an additional period in order
1465-8 to maintain the financial integrity of the electric utility;
1466-9 the prudence of the electric utility's actions in reducing its
1467-10 costs since the effective date of this amendatory Act of 1997;
1468-11 the ability of the electric utility to provide safe, adequate
1469-12 and reliable service to retail customers in its service area;
1470-13 and the impact on competition of allowing the electric utility
1471-14 to implement transition charges for the additional period.
1472-15 (g) The electric utility shall file tariffs that establish
1473-16 the transition charges to be paid by each class of customers to
1474-17 the electric utility in conjunction with the provision of
1475-18 delivery services. The electric utility's tariffs shall define
1476-19 the classes of its customers for purposes of calculating
1477-20 transition charges. The electric utility's tariffs shall
1478-21 provide for the calculation of transition charges on a
1479-22 customer-specific basis for any retail customer whose average
1480-23 monthly maximum electrical demand on the electric utility's
1481-24 system during the 6 months with the customer's highest monthly
1482-25 maximum electrical demands equals or exceeds 3.0 megawatts for
1483-26 electric utilities having more than 1,000,000 customers, and
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1494-1 for other electric utilities for any customer that has an
1495-2 average monthly maximum electrical demand on the electric
1496-3 utility's system of one megawatt or more, and (A) for which
1497-4 there exists data on the customer's usage during the 3 years
1498-5 preceding the date that the customer became eligible to take
1499-6 delivery services, or (B) for which there does not exist data
1500-7 on the customer's usage during the 3 years preceding the date
1501-8 that the customer became eligible to take delivery services,
1502-9 if in the electric utility's reasonable judgment there exists
1503-10 comparable usage information or a sufficient basis to develop
1504-11 such information, and further provided that the electric
1505-12 utility can require customers for which an individual
1506-13 calculation is made to sign contracts that set forth the
1507-14 transition charges to be paid by the customer to the electric
1508-15 utility pursuant to the tariff.
1509-16 (h) An electric utility shall also be entitled to file
1510-17 tariffs that allow it to collect transition charges from
1511-18 retail customers in the electric utility's service area that
1512-19 do not take delivery services but that take electric power or
1513-20 energy from an alternative retail electric supplier or from an
1514-21 electric utility other than the electric utility in whose
1515-22 service area the customer is located. Such charges shall be
1516-23 calculated, in accordance with the definition of transition
1517-24 charges in Section 16-102, for the period of time that the
1518-25 customer would be obligated to pay transition charges if it
1519-26 were taking delivery services, except that no deduction for
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1530-1 delivery services revenues shall be made in such calculation,
1531-2 and usage data from the customer's class shall be used where
1532-3 historical usage data is not available for the individual
1533-4 customer. The customer shall be obligated to pay such charges
1534-5 on a lump sum basis on or before the date on which the customer
1535-6 commences to take service from the alternative retail electric
1536-7 supplier or other electric utility, provided, that the
1537-8 electric utility in whose service area the customer is located
1538-9 shall offer the customer the option of signing a contract
1539-10 pursuant to which the customer pays such charges ratably over
1540-11 the period in which the charges would otherwise have applied.
1541-12 (i) An electric utility shall be entitled to add to the
1542-13 bills of delivery services customers charges pursuant to
1543-14 Sections 9-221, 9-222 (except as provided in Section 9-222.1),
1544-15 and Section 16-114 of this Act, Section 5-5 of the Electricity
1545-16 Infrastructure Maintenance Fee Law, Section 6-5 of the
1546-17 Renewable Energy, Energy Efficiency, and Coal Resources
1547-18 Development Law of 1997, and Section 13 of the Energy
1548-19 Assistance Act.
1549-20 (i-5) An electric utility required to impose the Coal to
1550-21 Solar and Energy Storage Initiative Charge provided for in
1551-22 subsection (c-5) of Section 1-75 of the Illinois Power Agency
1552-23 Act shall add such charge to the bills of its delivery services
1553-24 customers pursuant to the terms of a tariff conforming to the
1554-25 requirements of subsection (c-5) of Section 1-75 of the
1555-26 Illinois Power Agency Act and this subsection (i-5) and filed
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1566-1 with and approved by the Commission. The electric utility
1567-2 shall file its proposed tariff with the Commission on or
1568-3 before July 1, 2022 to be effective, after review and approval
1569-4 or modification by the Commission, beginning January 1, 2023.
1570-5 On or before December 1, 2022, the Commission shall review the
1571-6 electric utility's proposed tariff, including by conducting a
1572-7 docketed proceeding if deemed necessary by the Commission, and
1573-8 shall approve the proposed tariff or direct the electric
1574-9 utility to make modifications the Commission finds necessary
1575-10 for the tariff to conform to the requirements of subsection
1576-11 (c-5) of Section 1-75 of the Illinois Power Agency Act and this
1577-12 subsection (i-5). The electric utility's tariff shall provide
1578-13 for imposition of the Coal to Solar and Energy Storage
1579-14 Initiative Charge on a per-kilowatthour basis to all
1580-15 kilowatthours delivered by the electric utility to its
1581-16 delivery services customers. The tariff shall provide for the
1582-17 calculation of the Coal to Solar and Energy Storage Initiative
1583-18 Charge to be in effect for the year beginning January 1, 2023
1584-19 and each year beginning January 1 thereafter, sufficient to
1585-20 collect the electric utility's estimated payment obligations
1586-21 for the delivery year beginning the following June 1 under
1587-22 contracts for purchase of renewable energy credits entered
1588-23 into pursuant to subsection (c-5) of Section 1-75 of the
1589-24 Illinois Power Agency Act and the obligations of the
1590-25 Department of Commerce and Economic Opportunity, or any
1591-26 successor department or agency, which for purposes of this
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1602-1 subsection (i-5) shall be referred to as the Department, to
1603-2 make grant payments during such delivery year from the Coal to
1604-3 Solar and Energy Storage Initiative Fund pursuant to grant
1605-4 contracts entered into pursuant to subsection (c-5) of Section
1606-5 1-75 of the Illinois Power Agency Act, and using the electric
1607-6 utility's kilowatthour deliveries to its delivery services
1608-7 customers during the delivery year ended May 31 of the
1609-8 preceding calendar year. On or before November 1 of each year
1610-9 beginning November 1, 2022, the Department shall notify the
1611-10 electric utilities of the amount of the Department's estimated
1612-11 obligations for grant payments during the delivery year
1613-12 beginning the following June 1 pursuant to grant contracts
1614-13 entered into pursuant to subsection (c-5) of Section 1-75 of
1615-14 the Illinois Power Agency Act; and each electric utility shall
1616-15 incorporate in the calculation of its Coal to Solar and Energy
1617-16 Storage Initiative Charge the fractional portion of the
1618-17 Department's estimated obligations equal to the electric
1619-18 utility's kilowatthour deliveries to its delivery services
1620-19 customers in the delivery year ended the preceding May 31
1621-20 divided by the aggregate deliveries of both electric utilities
1622-21 to delivery services customers in such delivery year. The
1623-22 electric utility shall remit on a monthly basis to the State
1624-23 Treasurer, for deposit in the Coal to Solar and Energy Storage
1625-24 Initiative Fund provided for in subsection (c-5) of Section
1626-25 1-75 of the Illinois Power Agency Act, the electric utility's
1627-26 collections of the Coal to Solar and Energy Storage Initiative
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1638-1 Charge estimated to be needed by the Department for grant
1639-2 payments pursuant to grant contracts entered into pursuant to
1640-3 subsection (c-5) of Section 1-75 of the Illinois Power Agency
1641-4 Act. The initial charge under the electric utility's tariff
1642-5 shall be effective for kilowatthours delivered beginning
1643-6 January 1, 2023, and thereafter shall be revised to be
1644-7 effective January 1, 2024 and each January 1 thereafter, based
1645-8 on the payment obligations for the delivery year beginning the
1646-9 following June 1. The tariff shall provide for the electric
1647-10 utility to make an annual filing with the Commission on or
1648-11 before November 15 of each year, beginning in 2023, setting
1649-12 forth the Coal to Solar and Energy Storage Initiative Charge
1650-13 to be in effect for the year beginning the following January 1.
1651-14 The electric utility's tariff shall also provide that the
1652-15 electric utility shall make a filing with the Commission on or
1653-16 before August 1 of each year beginning in 2024 setting forth a
1654-17 reconciliation, for the delivery year ended the preceding May
1655-18 31, of the electric utility's collections of the Coal to Solar
1656-19 and Energy Storage Initiative Charge against actual payments
1657-20 for renewable energy credits pursuant to contracts entered
1658-21 into, and the actual grant payments by the Department pursuant
1659-22 to grant contracts entered into, pursuant to subsection (c-5)
1660-23 of Section 1-75 of the Illinois Power Agency Act. The tariff
1661-24 shall provide that any excess or shortfall of collections to
1662-25 payments shall be deducted from or added to, on a
1663-26 per-kilowatthour basis, the Coal to Solar and Energy Storage
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1674-1 Initiative Charge, over the 6-month period beginning October 1
1675-2 of that calendar year.
1676-3 (j) If a retail customer that obtains electric power and
1677-4 energy from cogeneration or self-generation facilities
1678-5 installed for its own use on or before January 1, 1997,
1679-6 subsequently takes service from an alternative retail electric
1680-7 supplier or an electric utility other than the electric
1681-8 utility in whose service area the customer is located for any
1682-9 portion of the customer's electric power and energy
1683-10 requirements formerly obtained from those facilities
1684-11 (including that amount purchased from the utility in lieu of
1685-12 such generation and not as standby power purchases, under a
1686-13 cogeneration displacement tariff in effect as of the effective
1687-14 date of this amendatory Act of 1997), the transition charges
1688-15 otherwise applicable pursuant to subsections (f), (g), or (h)
1689-16 of this Section shall not be applicable in any year to that
1690-17 portion of the customer's electric power and energy
1691-18 requirements formerly obtained from those facilities,
1692-19 provided, that for purposes of this subsection (j), such
1693-20 portion shall not exceed the average number of kilowatt-hours
1694-21 per year obtained from the cogeneration or self-generation
1695-22 facilities during the 3 years prior to the date on which the
1696-23 customer became eligible for delivery services, except as
1697-24 provided in subsection (f) of Section 16-110.
1698-25 (k) The electric utility shall be entitled to recover
1699-26 through tariffed charges all of the costs associated with the
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1710-1 purchase of zero emission credits from zero emission
1711-2 facilities to meet the requirements of subsection (d-5) of
1712-3 Section 1-75 of the Illinois Power Agency Act and all of the
1713-4 costs associated with the purchase of carbon mitigation
1714-5 credits from carbon-free energy resources to meet the
1715-6 requirements of subsection (d-10) of Section 1-75 of the
1716-7 Illinois Power Agency Act. Such costs shall include the costs
1717-8 of procuring the zero emission credits and carbon mitigation
1718-9 credits from carbon-free energy resources, as well as the
1719-10 reasonable costs that the utility incurs as part of the
1720-11 procurement processes and to implement and comply with plans
1721-12 and processes approved by the Commission under subsections
1722-13 (d-5) and (d-10). The costs shall be allocated across all
1723-14 retail customers through a single, uniform cents per
1724-15 kilowatt-hour charge applicable to all retail customers, which
1725-16 shall appear as a separate line item on each customer's bill.
1726-17 Beginning June 1, 2017, the electric utility shall be entitled
1727-18 to recover through tariffed charges all of the costs
1728-19 associated with the purchase of renewable energy resources to
1729-20 meet the renewable energy resource standards of subsection (c)
1730-21 of Section 1-75 of the Illinois Power Agency Act, under
1731-22 procurement plans as approved in accordance with that Section
1732-23 and Section 16-111.5 of this Act. Such costs shall include the
1733-24 costs of procuring the renewable energy resources, as well as
1734-25 the reasonable costs that the utility incurs as part of the
1735-26 procurement processes and to implement and comply with plans
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1746-1 and processes approved by the Commission under such Sections.
1747-2 The costs associated with the purchase of renewable energy
1748-3 resources shall be allocated across all retail customers in
1749-4 proportion to the amount of renewable energy resources the
1750-5 utility procures for such customers through a single, uniform
1751-6 cents per kilowatt-hour charge applicable to such retail
1752-7 customers, which shall appear as a separate line item on each
1753-8 such customer's bill. The credits, costs, and penalties
1754-9 associated with the self-direct renewable portfolio standard
1755-10 compliance program described in subparagraph (R) of paragraph
1756-11 (1) of subsection (c) of Section 1-75 of the Illinois Power
1757-12 Agency Act shall be allocated to approved eligible self-direct
1758-13 customers by the utility in a cents per kilowatt-hour credit,
1759-14 cost, or penalty, which shall appear as a separate line item on
1760-15 each such customer's bill.
1761-16 Notwithstanding whether the Commission has approved the
1762-17 initial long-term renewable resources procurement plan as of
1763-18 June 1, 2017, an electric utility shall place new tariffed
1764-19 charges into effect beginning with the June 2017 monthly
1765-20 billing period, to the extent practicable, to begin recovering
1766-21 the costs of procuring renewable energy resources, as those
1767-22 charges are calculated under the limitations described in
1768-23 subparagraph (E) of paragraph (1) of subsection (c) of Section
1769-24 1-75 of the Illinois Power Agency Act. Notwithstanding the
1770-25 date on which the utility places such new tariffed charges
1771-26 into effect, the utility shall be permitted to collect the
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1782-1 charges under such tariff as if the tariff had been in effect
1783-2 beginning with the first day of the June 2017 monthly billing
1784-3 period. For the delivery years commencing June 1, 2017, June
1785-4 1, 2018, June 1, 2019, and each delivery year thereafter, the
1786-5 electric utility shall deposit into a separate interest
1787-6 bearing account of a financial institution the monies
1788-7 collected under the tariffed charges. Money collected from
1789-8 customers for the procurement of renewable energy resources in
1790-9 a given delivery year may be spent by the utility for the
1791-10 procurement of renewable resources over any of the following 5
1792-11 delivery years, after which unspent money shall be credited
1793-12 back to retail customers. The electric utility shall spend all
1794-13 money collected in earlier delivery years that has not yet
1795-14 been returned to customers, first, before spending money
1796-15 collected in later delivery years. Any interest earned shall
1797-16 be credited back to retail customers under the reconciliation
1798-17 proceeding provided for in this subsection (k), provided that
1799-18 the electric utility shall first be reimbursed from the
1800-19 interest for the administrative costs that it incurs to
1801-20 administer and manage the account. Any taxes due on the funds
1802-21 in the account, or interest earned on it, will be paid from the
1803-22 account or, if insufficient monies are available in the
1804-23 account, from the monies collected under the tariffed charges
1805-24 to recover the costs of procuring renewable energy resources.
1806-25 Monies deposited in the account shall be subject to the
1807-26 review, reconciliation, and true-up process described in this
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1818-1 subsection (k) that is applicable to the funds collected and
1819-2 costs incurred for the procurement of renewable energy
1820-3 resources.
1821-4 The electric utility shall be entitled to recover all of
1822-5 the costs identified in this subsection (k) through automatic
1823-6 adjustment clause tariffs applicable to all of the utility's
1824-7 retail customers that allow the electric utility to adjust its
1825-8 tariffed charges consistent with this subsection (k). The
1826-9 determination as to whether any excess funds were collected
1827-10 during a given delivery year for the purchase of renewable
1828-11 energy resources, and the crediting of any excess funds back
1829-12 to retail customers, shall not be made until after the close of
1830-13 the delivery year, which will ensure that the maximum amount
1831-14 of funds is available to implement the approved long-term
1832-15 renewable resources procurement plan during a given delivery
1833-16 year. The amount of excess funds eligible to be credited back
1834-17 to retail customers shall be reduced by an amount equal to the
1835-18 payment obligations required by any contracts entered into by
1836-19 an electric utility under contracts described in subsection
1837-20 (b) of Section 1-56 and subsection (c) of Section 1-75 of the
1838-21 Illinois Power Agency Act, even if such payments have not yet
1839-22 been made and regardless of the delivery year in which those
1840-23 payment obligations were incurred. Notwithstanding anything to
1841-24 the contrary, including in tariffs authorized by this
1842-25 subsection (k) in effect before the effective date of this
1843-26 amendatory Act of the 102nd General Assembly, all unspent
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1854-1 funds as of May 31, 2021, excluding any funds credited to
1855-2 customers during any utility billing cycle that commences
1856-3 prior to the effective date of this amendatory Act of the 102nd
1857-4 General Assembly, shall remain in the utility account and
1858-5 shall on a first in, first out basis be used toward utility
1859-6 payment obligations under contracts described in subsection
1860-7 (b) of Section 1-56 and subsection (c) of Section 1-75 of the
1861-8 Illinois Power Agency Act. The electric utility's collections
1862-9 under such automatic adjustment clause tariffs to recover the
1863-10 costs of renewable energy resources, zero emission credits
1864-11 from zero emission facilities, and carbon mitigation credits
1865-12 from carbon-free energy resources shall be subject to separate
1866-13 annual review, reconciliation, and true-up against actual
1867-14 costs by the Commission under a procedure that shall be
1868-15 specified in the electric utility's automatic adjustment
1869-16 clause tariffs and that shall be approved by the Commission in
1870-17 connection with its approval of such tariffs. The procedure
1871-18 shall provide that any difference between the electric
1872-19 utility's collections for zero emission credits and carbon
1873-20 mitigation credits under the automatic adjustment charges for
1874-21 an annual period and the electric utility's actual costs of
1875-22 zero emission credits from zero emission facilities and carbon
1876-23 mitigation credits from carbon-free energy resources for that
1877-24 same annual period shall be refunded to or collected from, as
1878-25 applicable, the electric utility's retail customers in
1879-26 subsequent periods.
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1890-1 Nothing in this subsection (k) is intended to affect,
1891-2 limit, or change the right of the electric utility to recover
1892-3 the costs associated with the procurement of renewable energy
1893-4 resources for periods commencing before, on, or after June 1,
1894-5 2017, as otherwise provided in the Illinois Power Agency Act.
1895-6 The funding available under this subsection (k), if any,
1896-7 for the programs described under subsection (b) of Section
1897-8 1-56 of the Illinois Power Agency Act shall not reduce the
1898-9 amount of funding for the programs described in subparagraph
1899-10 (O) of paragraph (1) of subsection (c) of Section 1-75 of the
1900-11 Illinois Power Agency Act. If funding is available under this
1901-12 subsection (k) for programs described under subsection (b) of
1902-13 Section 1-56 of the Illinois Power Agency Act, then the
1903-14 long-term renewable resources plan shall provide for the
1904-15 Agency to procure contracts in an amount that does not exceed
1905-16 the funding, and the contracts approved by the Commission
1906-17 shall be executed by the applicable utility or utilities.
1907-18 (k-5) An electric utility shall be entitled to recover
1908-19 through tariffed charges all costs associated with the
1909-20 purchase of geothermal renewable energy credits pursuant to
1910-21 the Geothermal Homes and Businesses Act. Such costs shall
1911-22 include: (i) the cost of procuring geothermal renewable energy
1912-23 credits, (ii) reasonable costs that the utility incurs as part
1913-24 of the procurement process, and (iii) costs incurred to
1914-25 implement and comply with any plan or process that is approved
1915-26 by the Commission.
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1926-1 (l) A utility that has terminated any contract executed
1927-2 under subsection (d-5) or (d-10) of Section 1-75 of the
1928-3 Illinois Power Agency Act shall be entitled to recover any
1929-4 remaining balance associated with the purchase of zero
1930-5 emission credits prior to such termination, and such utility
1931-6 shall also apply a credit to its retail customer bills in the
1932-7 event of any over-collection.
1933-8 (m)(1) An electric utility that recovers its costs of
1934-9 procuring zero emission credits from zero emission facilities
1935-10 through a cents-per-kilowatthour charge under subsection (k)
1936-11 of this Section shall be subject to the requirements of this
1937-12 subsection (m). Notwithstanding anything to the contrary, such
1938-13 electric utility shall, beginning on April 30, 2018, and each
1939-14 April 30 thereafter until April 30, 2026, calculate whether
1940-15 any reduction must be applied to such cents-per-kilowatthour
1941-16 charge that is paid by retail customers of the electric
1942-17 utility that have opted out of subsections (a) through (j) of
1943-18 Section 8-103B of this Act under subsection (l) of Section
1944-19 8-103B. Such charge shall be reduced for such customers for
1945-20 the next delivery year commencing on June 1 based on the amount
1946-21 necessary, if any, to limit the annual estimated average net
1947-22 increase for the prior calendar year due to the future energy
1948-23 investment costs to no more than 1.3% of 5.98 cents per
1949-24 kilowatt-hour, which is the average amount paid per
1950-25 kilowatthour for electric service during the year ending
1951-26 December 31, 2015 by Illinois industrial retail customers, as
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1962-1 reported to the Edison Electric Institute.
1963-2 The calculations required by this subsection (m) shall be
1964-3 made only once for each year, and no subsequent rate impact
1965-4 determinations shall be made.
1966-5 (2) For purposes of this Section, "future energy
1967-6 investment costs" shall be calculated by subtracting the
1968-7 cents-per-kilowatthour charge identified in subparagraph (A)
1969-8 of this paragraph (2) from the sum of the
1970-9 cents-per-kilowatthour charges identified in subparagraph (B)
1971-10 of this paragraph (2):
1972-11 (A) The cents-per-kilowatthour charge identified in
1973-12 the electric utility's tariff placed into effect under
1974-13 Section 8-103 of the Public Utilities Act that, on
1975-14 December 1, 2016, was applicable to those retail customers
1976-15 that have opted out of subsections (a) through (j) of
1977-16 Section 8-103B of this Act under subsection (l) of Section
1978-17 8-103B.
1979-18 (B) The sum of the following cents-per-kilowatthour
1980-19 charges applicable to those retail customers that have
1981-20 opted out of subsections (a) through (j) of Section 8-103B
1982-21 of this Act under subsection (l) of Section 8-103B,
1983-22 provided that if one or more of the following charges has
1984-23 been in effect and applied to such customers for more than
1985-24 one calendar year, then each charge shall be equal to the
1986-25 average of the charges applied over a period that
1987-26 commences with the calendar year ending December 31, 2017
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1998-1 and ends with the most recently completed calendar year
1999-2 prior to the calculation required by this subsection (m):
2000-3 (i) the cents-per-kilowatthour charge to recover
2001-4 the costs incurred by the utility under subsection
2002-5 (d-5) of Section 1-75 of the Illinois Power Agency
2003-6 Act, adjusted for any reductions required under this
2004-7 subsection (m); and
2005-8 (ii) the cents-per-kilowatthour charge to recover
2006-9 the costs incurred by the utility under Section
2007-10 16-107.6 of the Public Utilities Act.
2008-11 If no charge was applied for a given calendar year
2009-12 under item (i) or (ii) of this subparagraph (B), then the
2010-13 value of the charge for that year shall be zero.
2011-14 (3) If a reduction is required by the calculation
2012-15 performed under this subsection (m), then the amount of the
2013-16 reduction shall be multiplied by the number of years reflected
2014-17 in the averages calculated under subparagraph (B) of paragraph
2015-18 (2) of this subsection (m). Such reduction shall be applied to
2016-19 the cents-per-kilowatthour charge that is applicable to those
2017-20 retail customers that have opted out of subsections (a)
2018-21 through (j) of Section 8-103B of this Act under subsection (l)
2019-22 of Section 8-103B beginning with the next delivery year
2020-23 commencing after the date of the calculation required by this
2021-24 subsection (m).
2022-25 (4) The electric utility shall file a notice with the
2023-26 Commission on May 1 of 2018 and each May 1 thereafter until May
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2034-1 1, 2026 containing the reduction, if any, which must be
2035-2 applied for the delivery year which begins in the year of the
2036-3 filing. The notice shall contain the calculations made
2037-4 pursuant to this Section. By October 1 of each year beginning
2038-5 in 2018, each electric utility shall notify the Commission if
2039-6 it appears, based on an estimate of the calculation required
2040-7 in this subsection (m), that a reduction will be required in
2041-8 the next year.
2042-9 (Source: P.A. 102-662, eff. 9-15-21.)
2043-10 (220 ILCS 5/16-111.5)
2044-11 Sec. 16-111.5. Provisions relating to procurement.
2045-12 (a) An electric utility that on December 31, 2005 served
2046-13 at least 100,000 customers in Illinois shall procure power and
2047-14 energy for its eligible retail customers in accordance with
2048-15 the applicable provisions set forth in Section 1-75 of the
2049-16 Illinois Power Agency Act and this Section. Beginning with the
2050-17 delivery year commencing on June 1, 2017, such electric
2051-18 utility shall also procure zero emission credits from zero
2052-19 emission facilities in accordance with the applicable
2053-20 provisions set forth in Section 1-75 of the Illinois Power
2054-21 Agency Act, and, for years beginning on or after June 1, 2017,
2055-22 the utility shall procure renewable energy resources in
2056-23 accordance with the applicable provisions set forth in Section
2057-24 1-75 of the Illinois Power Agency Act and this Section.
2058-25 Beginning with the delivery year commencing on June 1, 2022,
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2069-1 an electric utility serving over 3,000,000 customers shall
2070-2 also procure carbon mitigation credits from carbon-free energy
2071-3 resources in accordance with the applicable provisions set
2072-4 forth in Section 1-75 of the Illinois Power Agency Act and this
2073-5 Section. Beginning with the delivery year commencing on June
2074-6 1, 2026, such electric utility shall also procure geothermal
2075-7 renewable energy credits in accordance with the applicable
2076-8 provisions set forth in the Geothermal Homes and Businesses
2077-9 Act. A small multi-jurisdictional electric utility that on
2078-10 December 31, 2005 served less than 100,000 customers in
2079-11 Illinois may elect to procure power and energy for all or a
2080-12 portion of its eligible Illinois retail customers in
2081-13 accordance with the applicable provisions set forth in this
2082-14 Section and Section 1-75 of the Illinois Power Agency Act.
2083-15 This Section shall not apply to a small multi-jurisdictional
2084-16 utility until such time as a small multi-jurisdictional
2085-17 utility requests the Illinois Power Agency to prepare a
2086-18 procurement plan for its eligible retail customers. "Eligible
2087-19 retail customers" for the purposes of this Section means those
2088-20 retail customers that purchase power and energy from the
2089-21 electric utility under fixed-price bundled service tariffs,
2090-22 other than those retail customers whose service is declared or
2091-23 deemed competitive under Section 16-113 and those other
2092-24 customer groups specified in this Section, including
2093-25 self-generating customers, customers electing hourly pricing,
2094-26 or those customers who are otherwise ineligible for
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2105-1 fixed-price bundled tariff service. For those customers that
2106-2 are excluded from the procurement plan's electric supply
2107-3 service requirements, and the utility shall procure any supply
2108-4 requirements, including capacity, ancillary services, and
2109-5 hourly priced energy, in the applicable markets as needed to
2110-6 serve those customers, provided that the utility may include
2111-7 in its procurement plan load requirements for the load that is
2112-8 associated with those retail customers whose service has been
2113-9 declared or deemed competitive pursuant to Section 16-113 of
2114-10 this Act to the extent that those customers are purchasing
2115-11 power and energy during one of the transition periods
2116-12 identified in subsection (b) of Section 16-113 of this Act.
2117-13 (b) A procurement plan shall be prepared for each electric
2118-14 utility consistent with the applicable requirements of the
2119-15 Illinois Power Agency Act and this Section. For purposes of
2120-16 this Section, Illinois electric utilities that are affiliated
2121-17 by virtue of a common parent company are considered to be a
2122-18 single electric utility. Small multi-jurisdictional utilities
2123-19 may request a procurement plan for a portion of or all of its
2124-20 Illinois load. Each procurement plan shall analyze the
2125-21 projected balance of supply and demand for those retail
2126-22 customers to be included in the plan's electric supply service
2127-23 requirements over a 5-year period, with the first planning
2128-24 year beginning on June 1 of the year following the year in
2129-25 which the plan is filed. The plan shall specifically identify
2130-26 the wholesale products to be procured following plan approval,
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2141-1 and shall follow all the requirements set forth in the Public
2142-2 Utilities Act and all applicable State and federal laws,
2143-3 statutes, rules, or regulations, as well as Commission orders.
2144-4 Nothing in this Section precludes consideration of contracts
2145-5 longer than 5 years and related forecast data. Unless
2146-6 specified otherwise in this Section, in the procurement plan
2147-7 or in the implementing tariff, any procurement occurring in
2148-8 accordance with this plan shall be competitively bid through a
2149-9 request for proposals process. Approval and implementation of
2150-10 the procurement plan shall be subject to review and approval
2151-11 by the Commission according to the provisions set forth in
2152-12 this Section. A procurement plan shall include each of the
2153-13 following components:
2154-14 (1) Hourly load analysis. This analysis shall include:
2155-15 (i) multi-year historical analysis of hourly
2156-16 loads;
2157-17 (ii) switching trends and competitive retail
2158-18 market analysis;
2159-19 (iii) known or projected changes to future loads;
2160-20 and
2161-21 (iv) growth forecasts by customer class.
2162-22 (2) Analysis of the impact of any demand side and
2163-23 renewable energy initiatives. This analysis shall include:
2164-24 (i) the impact of demand response programs and
2165-25 energy efficiency programs, both current and
2166-26 projected; for small multi-jurisdictional utilities,
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2177-1 the impact of demand response and energy efficiency
2178-2 programs approved pursuant to Section 8-408 of this
2179-3 Act, both current and projected; and
2180-4 (ii) supply side needs that are projected to be
2181-5 offset by purchases of renewable energy resources, if
2182-6 any.
2183-7 (3) A plan for meeting the expected load requirements
2184-8 that will not be met through preexisting contracts. This
2185-9 plan shall include:
2186-10 (i) definitions of the different Illinois retail
2187-11 customer classes for which supply is being purchased;
2188-12 (ii) the proposed mix of demand-response products
2189-13 for which contracts will be executed during the next
2190-14 year. For small multi-jurisdictional electric
2191-15 utilities that on December 31, 2005 served fewer than
2192-16 100,000 customers in Illinois, these shall be defined
2193-17 as demand-response products offered in an energy
2194-18 efficiency plan approved pursuant to Section 8-408 of
2195-19 this Act. The cost-effective demand-response measures
2196-20 shall be procured whenever the cost is lower than
2197-21 procuring comparable capacity products, provided that
2198-22 such products shall:
2199-23 (A) be procured by a demand-response provider
2200-24 from those retail customers included in the plan's
2201-25 electric supply service requirements;
2202-26 (B) at least satisfy the demand-response
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2213-1 requirements of the regional transmission
2214-2 organization market in which the utility's service
2215-3 territory is located, including, but not limited
2216-4 to, any applicable capacity or dispatch
2217-5 requirements;
2218-6 (C) provide for customers' participation in
2219-7 the stream of benefits produced by the
2220-8 demand-response products;
2221-9 (D) provide for reimbursement by the
2222-10 demand-response provider of the utility for any
2223-11 costs incurred as a result of the failure of the
2224-12 supplier of such products to perform its
2225-13 obligations thereunder; and
2226-14 (E) meet the same credit requirements as apply
2227-15 to suppliers of capacity, in the applicable
2228-16 regional transmission organization market;
2229-17 (iii) monthly forecasted system supply
2230-18 requirements, including expected minimum, maximum, and
2231-19 average values for the planning period;
2232-20 (iv) the proposed mix and selection of standard
2233-21 wholesale products for which contracts will be
2234-22 executed during the next year, separately or in
2235-23 combination, to meet that portion of its load
2236-24 requirements not met through pre-existing contracts,
2237-25 including but not limited to monthly 5 x 16 peak period
2238-26 block energy, monthly off-peak wrap energy, monthly 7
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2249-1 x 24 energy, annual 5 x 16 energy, other standardized
2250-2 energy or capacity products designed to provide
2251-3 eligible retail customer benefits from commercially
2252-4 deployed advanced technologies including but not
2253-5 limited to high voltage direct current converter
2254-6 stations, as such term is defined in Section 1-10 of
2255-7 the Illinois Power Agency Act, whether or not such
2256-8 product is currently available in wholesale markets,
2257-9 annual off-peak wrap energy, annual 7 x 24 energy,
2258-10 monthly capacity, annual capacity, peak load capacity
2259-11 obligations, capacity purchase plan, and ancillary
2260-12 services;
2261-13 (v) proposed term structures for each wholesale
2262-14 product type included in the proposed procurement plan
2263-15 portfolio of products; and
2264-16 (vi) an assessment of the price risk, load
2265-17 uncertainty, and other factors that are associated
2266-18 with the proposed procurement plan; this assessment,
2267-19 to the extent possible, shall include an analysis of
2268-20 the following factors: contract terms, time frames for
2269-21 securing products or services, fuel costs, weather
2270-22 patterns, transmission costs, market conditions, and
2271-23 the governmental regulatory environment; the proposed
2272-24 procurement plan shall also identify alternatives for
2273-25 those portfolio measures that are identified as having
2274-26 significant price risk and mitigation in the form of
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2285-1 additional retail customer and ratepayer price,
2286-2 reliability, and environmental benefits from
2287-3 standardized energy products delivered from
2288-4 commercially deployed advanced technologies,
2289-5 including, but not limited to, high voltage direct
2290-6 current converter stations, as such term is defined in
2291-7 Section 1-10 of the Illinois Power Agency Act, whether
2292-8 or not such product is currently available in
2293-9 wholesale markets.
2294-10 (4) Proposed procedures for balancing loads. The
2295-11 procurement plan shall include, for load requirements
2296-12 included in the procurement plan, the process for (i)
2297-13 hourly balancing of supply and demand and (ii) the
2298-14 criteria for portfolio re-balancing in the event of
2299-15 significant shifts in load.
2300-16 (5) Long-Term Renewable Resources Procurement Plan.
2301-17 The Agency shall prepare a long-term renewable resources
2302-18 procurement plan for the procurement of renewable energy
2303-19 credits under Sections 1-56 and 1-75 of the Illinois Power
2304-20 Agency Act for delivery beginning in the 2017 delivery
2305-21 year.
2306-22 (i) The initial long-term renewable resources
2307-23 procurement plan and all subsequent revisions shall be
2308-24 subject to review and approval by the Commission. For
2309-25 the purposes of this Section, "delivery year" has the
2310-26 same meaning as in Section 1-10 of the Illinois Power
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2321-1 Agency Act. For purposes of this Section, "Agency"
2322-2 shall mean the Illinois Power Agency.
2323-3 (ii) The long-term renewable resources planning
2324-4 process shall be conducted as follows:
2325-5 (A) Electric utilities shall provide a range
2326-6 of load forecasts to the Illinois Power Agency
2327-7 within 45 days of the Agency's request for
2328-8 forecasts, which request shall specify the length
2329-9 and conditions for the forecasts including, but
2330-10 not limited to, the quantity of distributed
2331-11 generation expected to be interconnected for each
2332-12 year.
2333-13 (B) The Agency shall publish for comment the
2334-14 initial long-term renewable resources procurement
2335-15 plan no later than 120 days after the effective
2336-16 date of this amendatory Act of the 99th General
2337-17 Assembly and shall review, and may revise, the
2338-18 plan at least every 2 years thereafter. To the
2339-19 extent practicable, the Agency shall review and
2340-20 propose any revisions to the long-term renewable
2341-21 energy resources procurement plan in conjunction
2342-22 with the Agency's other planning and approval
2343-23 processes conducted under this Section. The
2344-24 initial long-term renewable resources procurement
2345-25 plan shall:
2346-26 (aa) Identify the procurement programs and
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2357-1 competitive procurement events consistent with
2358-2 the applicable requirements of the Illinois
2359-3 Power Agency Act and shall be designed to
2360-4 achieve the goals set forth in subsection (c)
2361-5 of Section 1-75 of that Act.
2362-6 (bb) Include a schedule for procurements
2363-7 for renewable energy credits from
2364-8 utility-scale wind projects, utility-scale
2365-9 solar projects, and brownfield site
2366-10 photovoltaic projects consistent with
2367-11 subparagraph (G) of paragraph (1) of
2368-12 subsection (c) of Section 1-75 of the Illinois
2369-13 Power Agency Act.
2370-14 (cc) Identify the process whereby the
2371-15 Agency will submit to the Commission for
2372-16 review and approval the proposed contracts to
2373-17 implement the programs required by such plan.
2374-18 Copies of the initial long-term renewable
2375-19 resources procurement plan and all subsequent
2376-20 revisions shall be posted and made publicly
2377-21 available on the Agency's and Commission's
2378-22 websites, and copies shall also be provided to
2379-23 each affected electric utility. An affected
2380-24 utility and other interested parties shall have 45
2381-25 days following the date of posting to provide
2382-26 comment to the Agency on the initial long-term
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2393-1 renewable resources procurement plan and all
2394-2 subsequent revisions. All comments submitted to
2395-3 the Agency shall be specific, supported by data or
2396-4 other detailed analyses, and, if objecting to all
2397-5 or a portion of the procurement plan, accompanied
2398-6 by specific alternative wording or proposals. All
2399-7 comments shall be posted on the Agency's and
2400-8 Commission's websites. During this 45-day comment
2401-9 period, the Agency shall hold at least one public
2402-10 hearing within each utility's service area that is
2403-11 subject to the requirements of this paragraph (5)
2404-12 for the purpose of receiving public comment.
2405-13 Within 21 days following the end of the 45-day
2406-14 review period, the Agency may revise the long-term
2407-15 renewable resources procurement plan based on the
2408-16 comments received and shall file the plan with the
2409-17 Commission for review and approval.
2410-18 (C) Within 14 days after the filing of the
2411-19 initial long-term renewable resources procurement
2412-20 plan or any subsequent revisions, any person
2413-21 objecting to the plan may file an objection with
2414-22 the Commission. Within 21 days after the filing of
2415-23 the plan, the Commission shall determine whether a
2416-24 hearing is necessary. The Commission shall enter
2417-25 its order confirming or modifying the initial
2418-26 long-term renewable resources procurement plan or
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2429-1 any subsequent revisions within 120 days after the
2430-2 filing of the plan by the Illinois Power Agency.
2431-3 (D) The Commission shall approve the initial
2432-4 long-term renewable resources procurement plan and
2433-5 any subsequent revisions, including expressly the
2434-6 forecast used in the plan and taking into account
2435-7 that funding will be limited to the amount of
2436-8 revenues actually collected by the utilities, if
2437-9 the Commission determines that the plan will
2438-10 reasonably and prudently accomplish the
2439-11 requirements of Section 1-56 and subsection (c) of
2440-12 Section 1-75 of the Illinois Power Agency Act. The
2441-13 Commission shall also approve the process for the
2442-14 submission, review, and approval of the proposed
2443-15 contracts to procure renewable energy credits or
2444-16 implement the programs authorized by the
2445-17 Commission pursuant to a long-term renewable
2446-18 resources procurement plan approved under this
2447-19 Section.
2448-20 In approving any long-term renewable resources
2449-21 procurement plan after the effective date of this
2450-22 amendatory Act of the 102nd General Assembly, the
2451-23 Commission shall approve or modify the Agency's
2452-24 proposal for minimum equity standards pursuant to
2453-25 subsection (c-10) of Section 1-75 of the Illinois
2454-26 Power Agency Act. The Commission shall consider
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2465-1 any analysis performed by the Agency in developing
2466-2 its proposal, including past performance,
2467-3 availability of equity eligible contractors, and
2468-4 availability of equity eligible persons at the
2469-5 time the long-term renewable resources procurement
2470-6 plan is approved.
2471-7 (iii) The Agency or third parties contracted by
2472-8 the Agency shall implement all programs authorized by
2473-9 the Commission in an approved long-term renewable
2474-10 resources procurement plan without further review and
2475-11 approval by the Commission. Third parties shall not
2476-12 begin implementing any programs or receive any payment
2477-13 under this Section until the Commission has approved
2478-14 the contract or contracts under the process authorized
2479-15 by the Commission in item (D) of subparagraph (ii) of
2480-16 paragraph (5) of this subsection (b) and the third
2481-17 party and the Agency or utility, as applicable, have
2482-18 executed the contract. For those renewable energy
2483-19 credits subject to procurement through a competitive
2484-20 bid process under the plan or under the initial
2485-21 forward procurements for wind and solar resources
2486-22 described in subparagraph (G) of paragraph (1) of
2487-23 subsection (c) of Section 1-75 of the Illinois Power
2488-24 Agency Act, the Agency shall follow the procurement
2489-25 process specified in the provisions relating to
2490-26 electricity procurement in subsections (e) through (i)
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2501-1 of this Section.
2502-2 (iv) An electric utility shall recover its costs
2503-3 associated with the procurement of renewable energy
2504-4 credits under this Section and pursuant to subsection
2505-5 (c-5) of Section 1-75 of the Illinois Power Agency Act
2506-6 through an automatic adjustment clause tariff under
2507-7 subsection (k) or a tariff pursuant to subsection
2508-8 (i-5), as applicable, of Section 16-108 of this Act. A
2509-9 utility shall not be required to advance any payment
2510-10 or pay any amounts under this Section that exceed the
2511-11 actual amount of revenues collected by the utility
2512-12 under paragraph (6) of subsection (c) of Section 1-75
2513-13 of the Illinois Power Agency Act, subsection (c-5) of
2514-14 Section 1-75 of the Illinois Power Agency Act, and
2515-15 subsection (k) or subsection (i-5), as applicable, of
2516-16 Section 16-108 of this Act, and contracts executed
2517-17 under this Section shall expressly incorporate this
2518-18 limitation.
2519-19 (v) For the public interest, safety, and welfare,
2520-20 the Agency and the Commission may adopt rules to carry
2521-21 out the provisions of this Section on an emergency
2522-22 basis immediately following the effective date of this
2523-23 amendatory Act of the 99th General Assembly.
2524-24 (vi) On or before July 1 of each year, the
2525-25 Commission shall hold an informal hearing for the
2526-26 purpose of receiving comments on the prior year's
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2537-1 procurement process and any recommendations for
2538-2 change.
2539-3 (b-5) An electric utility that as of January 1, 2019
2540-4 served more than 300,000 retail customers in this State shall
2541-5 purchase renewable energy credits from new renewable energy
2542-6 facilities constructed at or adjacent to the sites of
2543-7 coal-fueled electric generating facilities in this State in
2544-8 accordance with subsection (c-5) of Section 1-75 of the
2545-9 Illinois Power Agency Act. Except as expressly provided in
2546-10 this Section, the plans and procedures for such procurements
2547-11 shall not be included in the procurement plans provided for in
2548-12 this Section, but rather shall be conducted and implemented
2549-13 solely in accordance with subsection (c-5) of Section 1-75 of
2550-14 the Illinois Power Agency Act.
2551-15 (c) The provisions of this subsection (c) shall not apply
2552-16 to procurements conducted pursuant to subsection (c-5) of
2553-17 Section 1-75 of the Illinois Power Agency Act. However, the
2554-18 Agency may retain a procurement administrator to assist the
2555-19 Agency in planning and carrying out the procurement events and
2556-20 implementing the other requirements specified in such
2557-21 subsection (c-5) of Section 1-75 of the Illinois Power Agency
2558-22 Act, with the costs incurred by the Agency for the procurement
2559-23 administrator to be recovered through fees charged to
2560-24 applicants for selection to sell and deliver renewable energy
2561-25 credits to electric utilities pursuant to subsection (c-5) of
2562-26 Section 1-75 of the Illinois Power Agency Act. The procurement
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2573-1 process set forth in Section 1-75 of the Illinois Power Agency
2574-2 Act and subsection (e) of this Section shall be administered
2575-3 by a procurement administrator and monitored by a procurement
2576-4 monitor.
2577-5 (1) The procurement administrator shall:
2578-6 (i) design the final procurement process in
2579-7 accordance with Section 1-75 of the Illinois Power
2580-8 Agency Act and subsection (e) of this Section
2581-9 following Commission approval of the procurement plan;
2582-10 (ii) develop benchmarks in accordance with
2583-11 subsection (e)(3) to be used to evaluate bids; these
2584-12 benchmarks shall be submitted to the Commission for
2585-13 review and approval on a confidential basis prior to
2586-14 the procurement event;
2587-15 (iii) serve as the interface between the electric
2588-16 utility and suppliers;
2589-17 (iv) manage the bidder pre-qualification and
2590-18 registration process;
2591-19 (v) obtain the electric utilities' agreement to
2592-20 the final form of all supply contracts and credit
2593-21 collateral agreements;
2594-22 (vi) administer the request for proposals process;
2595-23 (vii) have the discretion to negotiate to
2596-24 determine whether bidders are willing to lower the
2597-25 price of bids that meet the benchmarks approved by the
2598-26 Commission; any post-bid negotiations with bidders
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2609-1 shall be limited to price only and shall be completed
2610-2 within 24 hours after opening the sealed bids and
2611-3 shall be conducted in a fair and unbiased manner; in
2612-4 conducting the negotiations, there shall be no
2613-5 disclosure of any information derived from proposals
2614-6 submitted by competing bidders; if information is
2615-7 disclosed to any bidder, it shall be provided to all
2616-8 competing bidders;
2617-9 (viii) maintain confidentiality of supplier and
2618-10 bidding information in a manner consistent with all
2619-11 applicable laws, rules, regulations, and tariffs;
2620-12 (ix) submit a confidential report to the
2621-13 Commission recommending acceptance or rejection of
2622-14 bids;
2623-15 (x) notify the utility of contract counterparties
2624-16 and contract specifics; and
2625-17 (xi) administer related contingency procurement
2626-18 events.
2627-19 (2) The procurement monitor, who shall be retained by
2628-20 the Commission, shall:
2629-21 (i) monitor interactions among the procurement
2630-22 administrator, suppliers, and utility;
2631-23 (ii) monitor and report to the Commission on the
2632-24 progress of the procurement process;
2633-25 (iii) provide an independent confidential report
2634-26 to the Commission regarding the results of the
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2645-1 procurement event;
2646-2 (iv) assess compliance with the procurement plans
2647-3 approved by the Commission for each utility that on
2648-4 December 31, 2005 provided electric service to at
2649-5 least 100,000 customers in Illinois and for each small
2650-6 multi-jurisdictional utility that on December 31, 2005
2651-7 served less than 100,000 customers in Illinois;
2652-8 (v) preserve the confidentiality of supplier and
2653-9 bidding information in a manner consistent with all
2654-10 applicable laws, rules, regulations, and tariffs;
2655-11 (vi) provide expert advice to the Commission and
2656-12 consult with the procurement administrator regarding
2657-13 issues related to procurement process design, rules,
2658-14 protocols, and policy-related matters; and
2659-15 (vii) consult with the procurement administrator
2660-16 regarding the development and use of benchmark
2661-17 criteria, standard form contracts, credit policies,
2662-18 and bid documents.
2663-19 (d) Except as provided in subsection (j), the planning
2664-20 process shall be conducted as follows:
2665-21 (1) Beginning in 2008, each Illinois utility procuring
2666-22 power pursuant to this Section shall annually provide a
2667-23 range of load forecasts to the Illinois Power Agency by
2668-24 July 15 of each year, or such other date as may be required
2669-25 by the Commission or Agency. The load forecasts shall
2670-26 cover the 5-year procurement planning period for the next
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2681-1 procurement plan and shall include hourly data
2682-2 representing a high-load, low-load, and expected-load
2683-3 scenario for the load of those retail customers included
2684-4 in the plan's electric supply service requirements. The
2685-5 utility shall provide supporting data and assumptions for
2686-6 each of the scenarios.
2687-7 (2) Beginning in 2008, the Illinois Power Agency shall
2688-8 prepare a procurement plan by August 15th of each year, or
2689-9 such other date as may be required by the Commission. The
2690-10 procurement plan shall identify the portfolio of
2691-11 demand-response and power and energy products to be
2692-12 procured. Cost-effective demand-response measures shall be
2693-13 procured as set forth in item (iii) of subsection (b) of
2694-14 this Section. Copies of the procurement plan shall be
2695-15 posted and made publicly available on the Agency's and
2696-16 Commission's websites, and copies shall also be provided
2697-17 to each affected electric utility. An affected utility
2698-18 shall have 30 days following the date of posting to
2699-19 provide comment to the Agency on the procurement plan.
2700-20 Other interested entities also may comment on the
2701-21 procurement plan. All comments submitted to the Agency
2702-22 shall be specific, supported by data or other detailed
2703-23 analyses, and, if objecting to all or a portion of the
2704-24 procurement plan, accompanied by specific alternative
2705-25 wording or proposals. All comments shall be posted on the
2706-26 Agency's and Commission's websites. During this 30-day
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2717-1 comment period, the Agency shall hold at least one public
2718-2 hearing within each utility's service area for the purpose
2719-3 of receiving public comment on the procurement plan.
2720-4 Within 14 days following the end of the 30-day review
2721-5 period, the Agency shall revise the procurement plan as
2722-6 necessary based on the comments received and file the
2723-7 procurement plan with the Commission and post the
2724-8 procurement plan on the websites.
2725-9 (3) Within 5 days after the filing of the procurement
2726-10 plan, any person objecting to the procurement plan shall
2727-11 file an objection with the Commission. Within 10 days
2728-12 after the filing, the Commission shall determine whether a
2729-13 hearing is necessary. The Commission shall enter its order
2730-14 confirming or modifying the procurement plan within 90
2731-15 days after the filing of the procurement plan by the
2732-16 Illinois Power Agency.
2733-17 (4) The Commission shall approve the procurement plan,
2734-18 including expressly the forecast used in the procurement
2735-19 plan, if the Commission determines that it will ensure
2736-20 adequate, reliable, affordable, efficient, and
2737-21 environmentally sustainable electric service at the lowest
2738-22 total cost over time, taking into account any benefits of
2739-23 price stability.
2740-24 (4.5) The Commission shall review the Agency's
2741-25 recommendations for the selection of applicants to enter
2742-26 into long-term contracts for the sale and delivery of
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2753-1 renewable energy credits from new renewable energy
2754-2 facilities to be constructed at or adjacent to the sites
2755-3 of coal-fueled electric generating facilities in this
2756-4 State in accordance with the provisions of subsection
2757-5 (c-5) of Section 1-75 of the Illinois Power Agency Act,
2758-6 and shall approve the Agency's recommendations if the
2759-7 Commission determines that the applicants recommended by
2760-8 the Agency for selection, the proposed new renewable
2761-9 energy facilities to be constructed, the amounts of
2762-10 renewable energy credits to be delivered pursuant to the
2763-11 contracts, and the other terms of the contracts, are
2764-12 consistent with the requirements of subsection (c-5) of
2765-13 Section 1-75 of the Illinois Power Agency Act.
2766-14 (e) The procurement process shall include each of the
2767-15 following components:
2768-16 (1) Solicitation, pre-qualification, and registration
2769-17 of bidders. The procurement administrator shall
2770-18 disseminate information to potential bidders to promote a
2771-19 procurement event, notify potential bidders that the
2772-20 procurement administrator may enter into a post-bid price
2773-21 negotiation with bidders that meet the applicable
2774-22 benchmarks, provide supply requirements, and otherwise
2775-23 explain the competitive procurement process. In addition
2776-24 to such other publication as the procurement administrator
2777-25 determines is appropriate, this information shall be
2778-26 posted on the Illinois Power Agency's and the Commission's
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2789-1 websites. The procurement administrator shall also
2790-2 administer the prequalification process, including
2791-3 evaluation of credit worthiness, compliance with
2792-4 procurement rules, and agreement to the standard form
2793-5 contract developed pursuant to paragraph (2) of this
2794-6 subsection (e). The procurement administrator shall then
2795-7 identify and register bidders to participate in the
2796-8 procurement event.
2797-9 (2) Standard contract forms and credit terms and
2798-10 instruments. The procurement administrator, in
2799-11 consultation with the utilities, the Commission, and other
2800-12 interested parties and subject to Commission oversight,
2801-13 shall develop and provide standard contract forms for the
2802-14 supplier contracts that meet generally accepted industry
2803-15 practices. Standard credit terms and instruments that meet
2804-16 generally accepted industry practices shall be similarly
2805-17 developed. The procurement administrator shall make
2806-18 available to the Commission all written comments it
2807-19 receives on the contract forms, credit terms, or
2808-20 instruments. If the procurement administrator cannot reach
2809-21 agreement with the applicable electric utility as to the
2810-22 contract terms and conditions, the procurement
2811-23 administrator must notify the Commission of any disputed
2812-24 terms and the Commission shall resolve the dispute. The
2813-25 terms of the contracts shall not be subject to negotiation
2814-26 by winning bidders, and the bidders must agree to the
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2825-1 terms of the contract in advance so that winning bids are
2826-2 selected solely on the basis of price.
2827-3 (3) Establishment of a market-based price benchmark.
2828-4 As part of the development of the procurement process, the
2829-5 procurement administrator, in consultation with the
2830-6 Commission staff, Agency staff, and the procurement
2831-7 monitor, shall establish benchmarks for evaluating the
2832-8 final prices in the contracts for each of the products
2833-9 that will be procured through the procurement process. The
2834-10 benchmarks shall be based on price data for similar
2835-11 products for the same delivery period and same delivery
2836-12 hub, or other delivery hubs after adjusting for that
2837-13 difference. The price benchmarks may also be adjusted to
2838-14 take into account differences between the information
2839-15 reflected in the underlying data sources and the specific
2840-16 products and procurement process being used to procure
2841-17 power for the Illinois utilities. The benchmarks shall be
2842-18 confidential but shall be provided to, and will be subject
2843-19 to Commission review and approval, prior to a procurement
2844-20 event.
2845-21 (4) Request for proposals competitive procurement
2846-22 process. The procurement administrator shall design and
2847-23 issue a request for proposals to supply electricity in
2848-24 accordance with each utility's procurement plan, as
2849-25 approved by the Commission. The request for proposals
2850-26 shall set forth a procedure for sealed, binding commitment
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2861-1 bidding with pay-as-bid settlement, and provision for
2862-2 selection of bids on the basis of price.
2863-3 (5) A plan for implementing contingencies in the event
2864-4 of supplier default or failure of the procurement process
2865-5 to fully meet the expected load requirement due to
2866-6 insufficient supplier participation, Commission rejection
2867-7 of results, or any other cause.
2868-8 (i) Event of supplier default: In the event of
2869-9 supplier default, the utility shall review the
2870-10 contract of the defaulting supplier to determine if
2871-11 the amount of supply is 200 megawatts or greater, and
2872-12 if there are more than 60 days remaining of the
2873-13 contract term. If both of these conditions are met,
2874-14 and the default results in termination of the
2875-15 contract, the utility shall immediately notify the
2876-16 Illinois Power Agency that a request for proposals
2877-17 must be issued to procure replacement power, and the
2878-18 procurement administrator shall run an additional
2879-19 procurement event. If the contracted supply of the
2880-20 defaulting supplier is less than 200 megawatts or
2881-21 there are less than 60 days remaining of the contract
2882-22 term, the utility shall procure power and energy from
2883-23 the applicable regional transmission organization
2884-24 market, including ancillary services, capacity, and
2885-25 day-ahead or real time energy, or both, for the
2886-26 duration of the contract term to replace the
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2897-1 contracted supply; provided, however, that if a needed
2898-2 product is not available through the regional
2899-3 transmission organization market it shall be purchased
2900-4 from the wholesale market.
2901-5 (ii) Failure of the procurement process to fully
2902-6 meet the expected load requirement: If the procurement
2903-7 process fails to fully meet the expected load
2904-8 requirement due to insufficient supplier participation
2905-9 or due to a Commission rejection of the procurement
2906-10 results, the procurement administrator, the
2907-11 procurement monitor, and the Commission staff shall
2908-12 meet within 10 days to analyze potential causes of low
2909-13 supplier interest or causes for the Commission
2910-14 decision. If changes are identified that would likely
2911-15 result in increased supplier participation, or that
2912-16 would address concerns causing the Commission to
2913-17 reject the results of the prior procurement event, the
2914-18 procurement administrator may implement those changes
2915-19 and rerun the request for proposals process according
2916-20 to a schedule determined by those parties and
2917-21 consistent with Section 1-75 of the Illinois Power
2918-22 Agency Act and this subsection. In any event, a new
2919-23 request for proposals process shall be implemented by
2920-24 the procurement administrator within 90 days after the
2921-25 determination that the procurement process has failed
2922-26 to fully meet the expected load requirement.
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2933-1 (iii) In all cases where there is insufficient
2934-2 supply provided under contracts awarded through the
2935-3 procurement process to fully meet the electric
2936-4 utility's load requirement, the utility shall meet the
2937-5 load requirement by procuring power and energy from
2938-6 the applicable regional transmission organization
2939-7 market, including ancillary services, capacity, and
2940-8 day-ahead or real time energy, or both; provided,
2941-9 however, that if a needed product is not available
2942-10 through the regional transmission organization market
2943-11 it shall be purchased from the wholesale market.
2944-12 (6) The procurement processes described in this
2945-13 subsection and in subsection (c-5) of Section 1-75 of the
2946-14 Illinois Power Agency Act are exempt from the requirements
2947-15 of the Illinois Procurement Code, pursuant to Section
2948-16 20-10 of that Code.
2949-17 (f) Within 2 business days after opening the sealed bids,
2950-18 the procurement administrator shall submit a confidential
2951-19 report to the Commission. The report shall contain the results
2952-20 of the bidding for each of the products along with the
2953-21 procurement administrator's recommendation for the acceptance
2954-22 and rejection of bids based on the price benchmark criteria
2955-23 and other factors observed in the process. The procurement
2956-24 monitor also shall submit a confidential report to the
2957-25 Commission within 2 business days after opening the sealed
2958-26 bids. The report shall contain the procurement monitor's
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2969-1 assessment of bidder behavior in the process as well as an
2970-2 assessment of the procurement administrator's compliance with
2971-3 the procurement process and rules. The Commission shall review
2972-4 the confidential reports submitted by the procurement
2973-5 administrator and procurement monitor, and shall accept or
2974-6 reject the recommendations of the procurement administrator
2975-7 within 2 business days after receipt of the reports.
2976-8 (g) Within 3 business days after the Commission decision
2977-9 approving the results of a procurement event, the utility
2978-10 shall enter into binding contractual arrangements with the
2979-11 winning suppliers using the standard form contracts; except
2980-12 that the utility shall not be required either directly or
2981-13 indirectly to execute the contracts if a tariff that is
2982-14 consistent with subsection (l) of this Section has not been
2983-15 approved and placed into effect for that utility.
2984-16 (h) For the procurement of standard wholesale products,
2985-17 the names of the successful bidders and the load weighted
2986-18 average of the winning bid prices for each contract type and
2987-19 for each contract term shall be made available to the public at
2988-20 the time of Commission approval of a procurement event. For
2989-21 procurements conducted to meet the requirements of subsection
2990-22 (b) of Section 1-56 or subsection (c) of Section 1-75 of the
2991-23 Illinois Power Agency Act governed by the provisions of this
2992-24 Section, the address and nameplate capacity of the new
2993-25 renewable energy generating facility proposed by a winning
2994-26 bidder shall also be made available to the public at the time
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3005-1 of Commission approval of a procurement event, along with the
3006-2 business address and contact information for any winning
3007-3 bidder. An estimate or approximation of the nameplate capacity
3008-4 of the new renewable energy generating facility may be
3009-5 disclosed if necessary to protect the confidentiality of
3010-6 individual bid prices.
3011-7 The Commission, the procurement monitor, the procurement
3012-8 administrator, the Illinois Power Agency, and all participants
3013-9 in the procurement process shall maintain the confidentiality
3014-10 of all other supplier and bidding information in a manner
3015-11 consistent with all applicable laws, rules, regulations, and
3016-12 tariffs. Confidential information, including the confidential
3017-13 reports submitted by the procurement administrator and
3018-14 procurement monitor pursuant to subsection (f) of this
3019-15 Section, shall not be made publicly available and shall not be
3020-16 discoverable by any party in any proceeding, absent a
3021-17 compelling demonstration of need, nor shall those reports be
3022-18 admissible in any proceeding other than one for law
3023-19 enforcement purposes.
3024-20 (i) Within 2 business days after a Commission decision
3025-21 approving the results of a procurement event or such other
3026-22 date as may be required by the Commission from time to time,
3027-23 the utility shall file for informational purposes with the
3028-24 Commission its actual or estimated retail supply charges, as
3029-25 applicable, by customer supply group reflecting the costs
3030-26 associated with the procurement and computed in accordance
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3041-1 with the tariffs filed pursuant to subsection (l) of this
3042-2 Section and approved by the Commission.
3043-3 (j) Within 60 days following August 28, 2007 (the
3044-4 effective date of Public Act 95-481), each electric utility
3045-5 that on December 31, 2005 provided electric service to at
3046-6 least 100,000 customers in Illinois shall prepare and file
3047-7 with the Commission an initial procurement plan, which shall
3048-8 conform in all material respects to the requirements of the
3049-9 procurement plan set forth in subsection (b); provided,
3050-10 however, that the Illinois Power Agency Act shall not apply to
3051-11 the initial procurement plan prepared pursuant to this
3052-12 subsection. The initial procurement plan shall identify the
3053-13 portfolio of power and energy products to be procured and
3054-14 delivered for the period June 2008 through May 2009, and shall
3055-15 identify the proposed procurement administrator, who shall
3056-16 have the same experience and expertise as is required of a
3057-17 procurement administrator hired pursuant to Section 1-75 of
3058-18 the Illinois Power Agency Act. Copies of the procurement plan
3059-19 shall be posted and made publicly available on the
3060-20 Commission's website. The initial procurement plan may include
3061-21 contracts for renewable resources that extend beyond May 2009.
3062-22 (i) Within 14 days following filing of the initial
3063-23 procurement plan, any person may file a detailed objection
3064-24 with the Commission contesting the procurement plan
3065-25 submitted by the electric utility. All objections to the
3066-26 electric utility's plan shall be specific, supported by
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3077-1 data or other detailed analyses. The electric utility may
3078-2 file a response to any objections to its procurement plan
3079-3 within 7 days after the date objections are due to be
3080-4 filed. Within 7 days after the date the utility's response
3081-5 is due, the Commission shall determine whether a hearing
3082-6 is necessary. If it determines that a hearing is
3083-7 necessary, it shall require the hearing to be completed
3084-8 and issue an order on the procurement plan within 60 days
3085-9 after the filing of the procurement plan by the electric
3086-10 utility.
3087-11 (ii) The order shall approve or modify the procurement
3088-12 plan, approve an independent procurement administrator,
3089-13 and approve or modify the electric utility's tariffs that
3090-14 are proposed with the initial procurement plan. The
3091-15 Commission shall approve the procurement plan if the
3092-16 Commission determines that it will ensure adequate,
3093-17 reliable, affordable, efficient, and environmentally
3094-18 sustainable electric service at the lowest total cost over
3095-19 time, taking into account any benefits of price stability.
3096-20 (k) (Blank).
3097-21 (k-5) (Blank).
3098-22 (l) An electric utility shall recover its costs incurred
3099-23 under this Section and subsection (c-5) of Section 1-75 of the
3100-24 Illinois Power Agency Act, including, but not limited to, the
3101-25 costs of procuring power and energy demand-response resources
3102-26 under this Section and its costs for purchasing renewable
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3113-1 energy credits pursuant to subsection (c-5) of Section 1-75 of
3114-2 the Illinois Power Agency Act. The utility shall file with the
3115-3 initial procurement plan its proposed tariffs through which
3116-4 its costs of procuring power that are incurred pursuant to a
3117-5 Commission-approved procurement plan and those other costs
3118-6 identified in this subsection (l), will be recovered. The
3119-7 tariffs shall include a formula rate or charge designed to
3120-8 pass through both the costs incurred by the utility in
3121-9 procuring a supply of electric power and energy for the
3122-10 applicable customer classes with no mark-up or return on the
3123-11 price paid by the utility for that supply, plus any just and
3124-12 reasonable costs that the utility incurs in arranging and
3125-13 providing for the supply of electric power and energy. The
3126-14 formula rate or charge shall also contain provisions that
3127-15 ensure that its application does not result in over or under
3128-16 recovery due to changes in customer usage and demand patterns,
3129-17 and that provide for the correction, on at least an annual
3130-18 basis, of any accounting errors that may occur. A utility
3131-19 shall recover through the tariff all reasonable costs incurred
3132-20 to implement or comply with any procurement plan that is
3133-21 developed and put into effect pursuant to Section 1-75 of the
3134-22 Illinois Power Agency Act and this Section, and for the
3135-23 procurement of renewable energy credits pursuant to subsection
3136-24 (c-5) of Section 1-75 of the Illinois Power Agency Act,
3137-25 including any fees assessed by the Illinois Power Agency,
3138-26 costs associated with load balancing, and contingency plan
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3149-1 costs. The electric utility shall also recover its full costs
3150-2 of procuring electric supply for which it contracted before
3151-3 the effective date of this Section in conjunction with the
3152-4 provision of full requirements service under fixed-price
3153-5 bundled service tariffs subsequent to December 31, 2006. All
3154-6 such costs shall be deemed to have been prudently incurred.
3155-7 The pass-through tariffs that are filed and approved pursuant
3156-8 to this Section shall not be subject to review under, or in any
3157-9 way limited by, Section 16-111(i) of this Act. All of the costs
3158-10 incurred by the electric utility associated with the purchase
3159-11 of zero emission credits in accordance with subsection (d-5)
3160-12 of Section 1-75 of the Illinois Power Agency Act, all costs
3161-13 incurred by the electric utility associated with the purchase
3162-14 of carbon mitigation credits in accordance with subsection
3163-15 (d-10) of Section 1-75 of the Illinois Power Agency Act, and,
3164-16 beginning June 1, 2017, all of the costs incurred by the
3165-17 electric utility associated with the purchase of renewable
3166-18 energy resources in accordance with Sections 1-56 and 1-75 of
3167-19 the Illinois Power Agency Act, and all of the costs incurred by
3168-20 the electric utility in purchasing renewable energy credits in
3169-21 accordance with subsection (c-5) of Section 1-75 of the
3170-22 Illinois Power Agency Act, shall be recovered through the
3171-23 electric utility's tariffed charges applicable to all of its
3172-24 retail customers, as specified in subsection (k) or subsection
3173-25 (i-5), as applicable, of Section 16-108 of this Act, and shall
3174-26 not be recovered through the electric utility's tariffed
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3185-1 charges for electric power and energy supply to its eligible
3186-2 retail customers.
3187-3 (m) The Commission has the authority to adopt rules to
3188-4 carry out the provisions of this Section. For the public
3189-5 interest, safety, and welfare, the Commission also has
3190-6 authority to adopt rules to carry out the provisions of this
3191-7 Section on an emergency basis immediately following August 28,
3192-8 2007 (the effective date of Public Act 95-481).
3193-9 (n) Notwithstanding any other provision of this Act, any
3194-10 affiliated electric utilities that submit a single procurement
3195-11 plan covering their combined needs may procure for those
3196-12 combined needs in conjunction with that plan, and may enter
3197-13 jointly into power supply contracts, purchases, and other
3198-14 procurement arrangements, and allocate capacity and energy and
3199-15 cost responsibility therefor among themselves in proportion to
3200-16 their requirements.
3201-17 (o) On or before June 1 of each year, the Commission shall
3202-18 hold an informal hearing for the purpose of receiving comments
3203-19 on the prior year's procurement process and any
3204-20 recommendations for change.
3205-21 (p) An electric utility subject to this Section may
3206-22 propose to invest, lease, own, or operate an electric
3207-23 generation facility as part of its procurement plan, provided
3208-24 the utility demonstrates that such facility is the least-cost
3209-25 option to provide electric service to those retail customers
3210-26 included in the plan's electric supply service requirements.
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3221-1 If the facility is shown to be the least-cost option and is
3222-2 included in a procurement plan prepared in accordance with
3223-3 Section 1-75 of the Illinois Power Agency Act and this
3224-4 Section, then the electric utility shall make a filing
3225-5 pursuant to Section 8-406 of this Act, and may request of the
3226-6 Commission any statutory relief required thereunder. If the
3227-7 Commission grants all of the necessary approvals for the
3228-8 proposed facility, such supply shall thereafter be considered
3229-9 as a pre-existing contract under subsection (b) of this
3230-10 Section. The Commission shall in any order approving a
3231-11 proposal under this subsection specify how the utility will
3232-12 recover the prudently incurred costs of investing in, leasing,
3233-13 owning, or operating such generation facility through just and
3234-14 reasonable rates charged to those retail customers included in
3235-15 the plan's electric supply service requirements. Cost recovery
3236-16 for facilities included in the utility's procurement plan
3237-17 pursuant to this subsection shall not be subject to review
3238-18 under or in any way limited by the provisions of Section
3239-19 16-111(i) of this Act. Nothing in this Section is intended to
3240-20 prohibit a utility from filing for a fuel adjustment clause as
3241-21 is otherwise permitted under Section 9-220 of this Act.
3242-22 (q) If the Illinois Power Agency filed with the
3243-23 Commission, under Section 16-111.5 of this Act, its proposed
3244-24 procurement plan for the period commencing June 1, 2017, and
3245-25 the Commission has not yet entered its final order approving
3246-26 the plan on or before the effective date of this amendatory Act
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3257-1 of the 99th General Assembly, then the Illinois Power Agency
3258-2 shall file a notice of withdrawal with the Commission, after
3259-3 the effective date of this amendatory Act of the 99th General
3260-4 Assembly, to withdraw the proposed procurement of renewable
3261-5 energy resources to be approved under the plan, other than the
3262-6 procurement of renewable energy credits from distributed
3263-7 renewable energy generation devices using funds previously
3264-8 collected from electric utilities' retail customers that take
3265-9 service pursuant to electric utilities' hourly pricing tariff
3266-10 or tariffs and, for an electric utility that serves less than
3267-11 100,000 retail customers in the State, other than the
3268-12 procurement of renewable energy credits from distributed
3269-13 renewable energy generation devices. Upon receipt of the
3270-14 notice, the Commission shall enter an order that approves the
3271-15 withdrawal of the proposed procurement of renewable energy
3272-16 resources from the plan. The initially proposed procurement of
3273-17 renewable energy resources shall not be approved or be the
3274-18 subject of any further hearing, investigation, proceeding, or
3275-19 order of any kind.
3276-20 This amendatory Act of the 99th General Assembly preempts
3277-21 and supersedes any order entered by the Commission that
3278-22 approved the Illinois Power Agency's procurement plan for the
3279-23 period commencing June 1, 2017, to the extent it is
3280-24 inconsistent with the provisions of this amendatory Act of the
3281-25 99th General Assembly. To the extent any previously entered
3282-26 order approved the procurement of renewable energy resources,
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3293-1 the portion of that order approving the procurement shall be
3294-2 void, other than the procurement of renewable energy credits
3295-3 from distributed renewable energy generation devices using
3296-4 funds previously collected from electric utilities' retail
3297-5 customers that take service under electric utilities' hourly
3298-6 pricing tariff or tariffs and, for an electric utility that
3299-7 serves less than 100,000 retail customers in the State, other
3300-8 than the procurement of renewable energy credits for
3301-9 distributed renewable energy generation devices.
3302-10 (Source: P.A. 102-662, eff. 9-15-21.)
3303-11 Section 999. Effective date. This Act takes effect upon
3304-12 becoming law.
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