Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2289 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2289 Introduced 2/7/2025, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-75220 ILCS 5/16-115D Amends the Illinois Power Agency Act. Removes the requirement for the Illinois Power Agency to annually determine the amount of utility-scale renewable energy credits it will include each year from the self-direct renewable portfolio standard compliance program. Provides that the self-direct credit amount for each renewable energy credit supplied shall be determined annually and is equal to the volumetric charge collected under a provision in the Public Utilities Act. Provides that the approved self-direct credit amount shall be multiplied by each renewable energy credit procured by participating self-direct customers for up to 100% of the self-direct customer's annual consumption. Provides that the self-direct customer's utility bill credit amount shall consist of a credit towards the utility-scale renewable energy portion of the volumetric charge and shall not include a credit toward the portion of the volumetric charge associated with procuring renewable energy credits through existing and future contracts under the Adjustable Block Program, the Solar for All Program, and a specified provision of the Act. Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities. Effective immediately. LRB104 06374 AAS 16410 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2289 Introduced 2/7/2025, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-75220 ILCS 5/16-115D 20 ILCS 3855/1-75 220 ILCS 5/16-115D Amends the Illinois Power Agency Act. Removes the requirement for the Illinois Power Agency to annually determine the amount of utility-scale renewable energy credits it will include each year from the self-direct renewable portfolio standard compliance program. Provides that the self-direct credit amount for each renewable energy credit supplied shall be determined annually and is equal to the volumetric charge collected under a provision in the Public Utilities Act. Provides that the approved self-direct credit amount shall be multiplied by each renewable energy credit procured by participating self-direct customers for up to 100% of the self-direct customer's annual consumption. Provides that the self-direct customer's utility bill credit amount shall consist of a credit towards the utility-scale renewable energy portion of the volumetric charge and shall not include a credit toward the portion of the volumetric charge associated with procuring renewable energy credits through existing and future contracts under the Adjustable Block Program, the Solar for All Program, and a specified provision of the Act. Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities. Effective immediately. LRB104 06374 AAS 16410 b LRB104 06374 AAS 16410 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2289 Introduced 2/7/2025, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 3855/1-75220 ILCS 5/16-115D 20 ILCS 3855/1-75 220 ILCS 5/16-115D
4	4	20 ILCS 3855/1-75
5	5	220 ILCS 5/16-115D
6	6	Amends the Illinois Power Agency Act. Removes the requirement for the Illinois Power Agency to annually determine the amount of utility-scale renewable energy credits it will include each year from the self-direct renewable portfolio standard compliance program. Provides that the self-direct credit amount for each renewable energy credit supplied shall be determined annually and is equal to the volumetric charge collected under a provision in the Public Utilities Act. Provides that the approved self-direct credit amount shall be multiplied by each renewable energy credit procured by participating self-direct customers for up to 100% of the self-direct customer's annual consumption. Provides that the self-direct customer's utility bill credit amount shall consist of a credit towards the utility-scale renewable energy portion of the volumetric charge and shall not include a credit toward the portion of the volumetric charge associated with procuring renewable energy credits through existing and future contracts under the Adjustable Block Program, the Solar for All Program, and a specified provision of the Act. Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities. Effective immediately.
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12	12	1 AN ACT concerning regulation.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Illinois Power Agency Act is amended by
16	16	5 changing Section 1-75 as follows:
17	17	6 (20 ILCS 3855/1-75)
18	18	7 Sec. 1-75. Planning and Procurement Bureau. The Planning
19	19	8 and Procurement Bureau has the following duties and
20	20	9 responsibilities:
21	21	10 (a) The Planning and Procurement Bureau shall each year,
22	22	11 beginning in 2008, develop procurement plans and conduct
23	23	12 competitive procurement processes in accordance with the
24	24	13 requirements of Section 16-111.5 of the Public Utilities Act
25	25	14 for the eligible retail customers of electric utilities that
26	26	15 on December 31, 2005 provided electric service to at least
27	27	16 100,000 customers in Illinois. Beginning with the delivery
28	28	17 year commencing on June 1, 2017, the Planning and Procurement
29	29	18 Bureau shall develop plans and processes for the procurement
30	30	19 of zero emission credits from zero emission facilities in
31	31	20 accordance with the requirements of subsection (d-5) of this
32	32	21 Section. Beginning on the effective date of this amendatory
33	33	22 Act of the 102nd General Assembly, the Planning and
34	34	23 Procurement Bureau shall develop plans and processes for the
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38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2289 Introduced 2/7/2025, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
39	39	20 ILCS 3855/1-75220 ILCS 5/16-115D 20 ILCS 3855/1-75 220 ILCS 5/16-115D
40	40	20 ILCS 3855/1-75
41	41	220 ILCS 5/16-115D
42	42	Amends the Illinois Power Agency Act. Removes the requirement for the Illinois Power Agency to annually determine the amount of utility-scale renewable energy credits it will include each year from the self-direct renewable portfolio standard compliance program. Provides that the self-direct credit amount for each renewable energy credit supplied shall be determined annually and is equal to the volumetric charge collected under a provision in the Public Utilities Act. Provides that the approved self-direct credit amount shall be multiplied by each renewable energy credit procured by participating self-direct customers for up to 100% of the self-direct customer's annual consumption. Provides that the self-direct customer's utility bill credit amount shall consist of a credit towards the utility-scale renewable energy portion of the volumetric charge and shall not include a credit toward the portion of the volumetric charge associated with procuring renewable energy credits through existing and future contracts under the Adjustable Block Program, the Solar for All Program, and a specified provision of the Act. Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities. Effective immediately.
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71	71	1 procurement of carbon mitigation credits from carbon-free
72	72	2 energy resources in accordance with the requirements of
73	73	3 subsection (d-10) of this Section. The Planning and
74	74	4 Procurement Bureau shall also develop procurement plans and
75	75	5 conduct competitive procurement processes in accordance with
76	76	6 the requirements of Section 16-111.5 of the Public Utilities
77	77	7 Act for the eligible retail customers of small
78	78	8 multi-jurisdictional electric utilities that (i) on December
79	79	9 31, 2005 served less than 100,000 customers in Illinois and
80	80	10 (ii) request a procurement plan for their Illinois
81	81	11 jurisdictional load. This Section shall not apply to a small
82	82	12 multi-jurisdictional utility until such time as a small
83	83	13 multi-jurisdictional utility requests the Agency to prepare a
84	84	14 procurement plan for their Illinois jurisdictional load. For
85	85	15 the purposes of this Section, the term "eligible retail
86	86	16 customers" has the same definition as found in Section
87	87	17 16-111.5(a) of the Public Utilities Act.
88	88	18 Beginning with the plan or plans to be implemented in the
89	89	19 2017 delivery year, the Agency shall no longer include the
90	90	20 procurement of renewable energy resources in the annual
91	91	21 procurement plans required by this subsection (a), except as
92	92	22 provided in subsection (q) of Section 16-111.5 of the Public
93	93	23 Utilities Act, and shall instead develop a long-term renewable
94	94	24 resources procurement plan in accordance with subsection (c)
95	95	25 of this Section and Section 16-111.5 of the Public Utilities
96	96	26 Act.
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107	107	1 In accordance with subsection (c-5) of this Section, the
108	108	2 Planning and Procurement Bureau shall oversee the procurement
109	109	3 by electric utilities that served more than 300,000 retail
110	110	4 customers in this State as of January 1, 2019 of renewable
111	111	5 energy credits from new utility-scale solar projects to be
112	112	6 installed, along with energy storage facilities, at or
113	113	7 adjacent to the sites of electric generating facilities that,
114	114	8 as of January 1, 2016, burned coal as their primary fuel
115	115	9 source.
116	116	10 (1) The Agency shall each year, beginning in 2008, as
117	117	11 needed, issue a request for qualifications for experts or
118	118	12 expert consulting firms to develop the procurement plans
119	119	13 in accordance with Section 16-111.5 of the Public
120	120	14 Utilities Act. In order to qualify an expert or expert
121	121	15 consulting firm must have:
122	122	16 (A) direct previous experience assembling
123	123	17 large-scale power supply plans or portfolios for
124	124	18 end-use customers;
125	125	19 (B) an advanced degree in economics, mathematics,
126	126	20 engineering, risk management, or a related area of
127	127	21 study;
128	128	22 (C) 10 years of experience in the electricity
129	129	23 sector, including managing supply risk;
130	130	24 (D) expertise in wholesale electricity market
131	131	25 rules, including those established by the Federal
132	132	26 Energy Regulatory Commission and regional transmission
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143	143	1 organizations;
144	144	2 (E) expertise in credit protocols and familiarity
145	145	3 with contract protocols;
146	146	4 (F) adequate resources to perform and fulfill the
147	147	5 required functions and responsibilities; and
148	148	6 (G) the absence of a conflict of interest and
149	149	7 inappropriate bias for or against potential bidders or
150	150	8 the affected electric utilities.
151	151	9 (2) The Agency shall each year, as needed, issue a
152	152	10 request for qualifications for a procurement administrator
153	153	11 to conduct the competitive procurement processes in
154	154	12 accordance with Section 16-111.5 of the Public Utilities
155	155	13 Act. In order to qualify an expert or expert consulting
156	156	14 firm must have:
157	157	15 (A) direct previous experience administering a
158	158	16 large-scale competitive procurement process;
159	159	17 (B) an advanced degree in economics, mathematics,
160	160	18 engineering, or a related area of study;
161	161	19 (C) 10 years of experience in the electricity
162	162	20 sector, including risk management experience;
163	163	21 (D) expertise in wholesale electricity market
164	164	22 rules, including those established by the Federal
165	165	23 Energy Regulatory Commission and regional transmission
166	166	24 organizations;
167	167	25 (E) expertise in credit and contract protocols;
168	168	26 (F) adequate resources to perform and fulfill the
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179	179	1 required functions and responsibilities; and
180	180	2 (G) the absence of a conflict of interest and
181	181	3 inappropriate bias for or against potential bidders or
182	182	4 the affected electric utilities.
183	183	5 (3) The Agency shall provide affected utilities and
184	184	6 other interested parties with the lists of qualified
185	185	7 experts or expert consulting firms identified through the
186	186	8 request for qualifications processes that are under
187	187	9 consideration to develop the procurement plans and to
188	188	10 serve as the procurement administrator. The Agency shall
189	189	11 also provide each qualified expert's or expert consulting
190	190	12 firm's response to the request for qualifications. All
191	191	13 information provided under this subparagraph shall also be
192	192	14 provided to the Commission. The Agency may provide by rule
193	193	15 for fees associated with supplying the information to
194	194	16 utilities and other interested parties. These parties
195	195	17 shall, within 5 business days, notify the Agency in
196	196	18 writing if they object to any experts or expert consulting
197	197	19 firms on the lists. Objections shall be based on:
198	198	20 (A) failure to satisfy qualification criteria;
199	199	21 (B) identification of a conflict of interest; or
200	200	22 (C) evidence of inappropriate bias for or against
201	201	23 potential bidders or the affected utilities.
202	202	24 The Agency shall remove experts or expert consulting
203	203	25 firms from the lists within 10 days if there is a
204	204	26 reasonable basis for an objection and provide the updated
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215	215	1 lists to the affected utilities and other interested
216	216	2 parties. If the Agency fails to remove an expert or expert
217	217	3 consulting firm from a list, an objecting party may seek
218	218	4 review by the Commission within 5 days thereafter by
219	219	5 filing a petition, and the Commission shall render a
220	220	6 ruling on the petition within 10 days. There is no right of
221	221	7 appeal of the Commission's ruling.
222	222	8 (4) The Agency shall issue requests for proposals to
223	223	9 the qualified experts or expert consulting firms to
224	224	10 develop a procurement plan for the affected utilities and
225	225	11 to serve as procurement administrator.
226	226	12 (5) The Agency shall select an expert or expert
227	227	13 consulting firm to develop procurement plans based on the
228	228	14 proposals submitted and shall award contracts of up to 5
229	229	15 years to those selected.
230	230	16 (6) The Agency shall select an expert or expert
231	231	17 consulting firm, with approval of the Commission, to serve
232	232	18 as procurement administrator based on the proposals
233	233	19 submitted. If the Commission rejects, within 5 days, the
234	234	20 Agency's selection, the Agency shall submit another
235	235	21 recommendation within 3 days based on the proposals
236	236	22 submitted. The Agency shall award a 5-year contract to the
237	237	23 expert or expert consulting firm so selected with
238	238	24 Commission approval.
239	239	25 (b) The experts or expert consulting firms retained by the
240	240	26 Agency shall, as appropriate, prepare procurement plans, and
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251	251	1 conduct a competitive procurement process as prescribed in
252	252	2 Section 16-111.5 of the Public Utilities Act, to ensure
253	253	3 adequate, reliable, affordable, efficient, and environmentally
254	254	4 sustainable electric service at the lowest total cost over
255	255	5 time, taking into account any benefits of price stability, for
256	256	6 eligible retail customers of electric utilities that on
257	257	7 December 31, 2005 provided electric service to at least
258	258	8 100,000 customers in the State of Illinois, and for eligible
259	259	9 Illinois retail customers of small multi-jurisdictional
260	260	10 electric utilities that (i) on December 31, 2005 served less
261	261	11 than 100,000 customers in Illinois and (ii) request a
262	262	12 procurement plan for their Illinois jurisdictional load.
263	263	13 (c) Renewable portfolio standard.
264	264	14 (1)(A) The Agency shall develop a long-term renewable
265	265	15 resources procurement plan that shall include procurement
266	266	16 programs and competitive procurement events necessary to
267	267	17 meet the goals set forth in this subsection (c). The
268	268	18 initial long-term renewable resources procurement plan
269	269	19 shall be released for comment no later than 160 days after
270	270	20 June 1, 2017 (the effective date of Public Act 99-906).
271	271	21 The Agency shall review, and may revise on an expedited
272	272	22 basis, the long-term renewable resources procurement plan
273	273	23 at least every 2 years, which shall be conducted in
274	274	24 conjunction with the procurement plan under Section
275	275	25 16-111.5 of the Public Utilities Act to the extent
276	276	26 practicable to minimize administrative expense. No later
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287	287	1 than 120 days after the effective date of this amendatory
288	288	2 Act of the 103rd General Assembly, the Agency shall
289	289	3 release for comment a revision to the long-term renewable
290	290	4 resources procurement plan, updating elements of the most
291	291	5 recently approved plan as needed to comply with this
292	292	6 amendatory Act of the 103rd General Assembly, and any
293	293	7 long-term renewable resources procurement plan update
294	294	8 published by the Agency but not yet approved by the
295	295	9 Illinois Commerce Commission shall be withdrawn. The
296	296	10 long-term renewable resources procurement plans shall be
297	297	11 subject to review and approval by the Commission under
298	298	12 Section 16-111.5 of the Public Utilities Act.
299	299	13 (B) Subject to subparagraph (F) of this paragraph (1),
300	300	14 the long-term renewable resources procurement plan shall
301	301	15 attempt to meet the goals for procurement of renewable
302	302	16 energy credits at levels of at least the following overall
303	303	17 percentages: 13% by the 2017 delivery year; increasing by
304	304	18 at least 1.5% each delivery year thereafter to at least
305	305	19 25% by the 2025 delivery year; increasing by at least 3%
306	306	20 each delivery year thereafter to at least 40% by the 2030
307	307	21 delivery year, and continuing at no less than 40% for each
308	308	22 delivery year thereafter. The Agency shall attempt to
309	309	23 procure 50% by delivery year 2040. The Agency shall
310	310	24 determine the annual increase between delivery year 2030
311	311	25 and delivery year 2040, if any, taking into account energy
312	312	26 demand, other energy resources, and other public policy
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323	323	1 goals. In the event of a conflict between these goals and
324	324	2 the new wind, new photovoltaic, and hydropower procurement
325	325	3 requirements described in items (i) through (iii) of
326	326	4 subparagraph (C) of this paragraph (1), the long-term plan
327	327	5 shall prioritize compliance with the new wind, new
328	328	6 photovoltaic, and hydropower procurement requirements
329	329	7 described in items (i) through (iii) of subparagraph (C)
330	330	8 of this paragraph (1) over the annual percentage targets
331	331	9 described in this subparagraph (B). The Agency shall not
332	332	10 comply with the annual percentage targets described in
333	333	11 this subparagraph (B) by procuring renewable energy
334	334	12 credits that are unlikely to lead to the development of
335	335	13 new renewable resources or new, modernized, or retooled
336	336	14 hydropower facilities.
337	337	15 For the delivery year beginning June 1, 2017, the
338	338	16 procurement plan shall attempt to include, subject to the
339	339	17 prioritization outlined in this subparagraph (B),
340	340	18 cost-effective renewable energy resources equal to at
341	341	19 least 13% of each utility's load for eligible retail
342	342	20 customers and 13% of the applicable portion of each
343	343	21 utility's load for retail customers who are not eligible
344	344	22 retail customers, which applicable portion shall equal 50%
345	345	23 of the utility's load for retail customers who are not
346	346	24 eligible retail customers on February 28, 2017.
347	347	25 For the delivery year beginning June 1, 2018, the
348	348	26 procurement plan shall attempt to include, subject to the
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359	359	1 prioritization outlined in this subparagraph (B),
360	360	2 cost-effective renewable energy resources equal to at
361	361	3 least 14.5% of each utility's load for eligible retail
362	362	4 customers and 14.5% of the applicable portion of each
363	363	5 utility's load for retail customers who are not eligible
364	364	6 retail customers, which applicable portion shall equal 75%
365	365	7 of the utility's load for retail customers who are not
366	366	8 eligible retail customers on February 28, 2017.
367	367	9 For the delivery year beginning June 1, 2019, and for
368	368	10 each year thereafter, the procurement plans shall attempt
369	369	11 to include, subject to the prioritization outlined in this
370	370	12 subparagraph (B), cost-effective renewable energy
371	371	13 resources equal to a minimum percentage of each utility's
372	372	14 load for all retail customers as follows: 16% by June 1,
373	373	15 2019; increasing by 1.5% each year thereafter to 25% by
374	374	16 June 1, 2025; and 25% by June 1, 2026; increasing by at
375	375	17 least 3% each delivery year thereafter to at least 40% by
376	376	18 the 2030 delivery year, and continuing at no less than 40%
377	377	19 for each delivery year thereafter. The Agency shall
378	378	20 attempt to procure 50% by delivery year 2040. The Agency
379	379	21 shall determine the annual increase between delivery year
380	380	22 2030 and delivery year 2040, if any, taking into account
381	381	23 energy demand, other energy resources, and other public
382	382	24 policy goals.
383	383	25 For each delivery year, the Agency shall first
384	384	26 recognize each utility's obligations for that delivery
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395	395	1 year under existing contracts. Any renewable energy
396	396	2 credits under existing contracts, including renewable
397	397	3 energy credits as part of renewable energy resources,
398	398	4 shall be used to meet the goals set forth in this
399	399	5 subsection (c) for the delivery year.
400	400	6 (C) The long-term renewable resources procurement plan
401	401	7 described in subparagraph (A) of this paragraph (1) shall
402	402	8 include the procurement of renewable energy credits from
403	403	9 new projects pursuant to the following terms:
404	404	10 (i) At least 10,000,000 renewable energy credits
405	405	11 delivered annually by the end of the 2021 delivery
406	406	12 year, and increasing ratably to reach 45,000,000
407	407	13 renewable energy credits delivered annually from new
408	408	14 wind and solar projects by the end of delivery year
409	409	15 2030 such that the goals in subparagraph (B) of this
410	410	16 paragraph (1) are met entirely by procurements of
411	411	17 renewable energy credits from new wind and
412	412	18 photovoltaic projects. Of that amount, to the extent
413	413	19 possible, the Agency shall procure 45% from wind and
414	414	20 hydropower projects and 55% from photovoltaic
415	415	21 projects. Of the amount to be procured from
416	416	22 photovoltaic projects, the Agency shall procure: at
417	417	23 least 50% from solar photovoltaic projects using the
418	418	24 program outlined in subparagraph (K) of this paragraph
419	419	25 (1) from distributed renewable energy generation
420	420	26 devices or community renewable generation projects; at
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431	431	1 least 47% from utility-scale solar projects; at least
432	432	2 3% from brownfield site photovoltaic projects that are
433	433	3 not community renewable generation projects.
434	434	4 In developing the long-term renewable resources
435	435	5 procurement plan, the Agency shall consider other
436	436	6 approaches, in addition to competitive procurements,
437	437	7 that can be used to procure renewable energy credits
438	438	8 from brownfield site photovoltaic projects and thereby
439	439	9 help return blighted or contaminated land to
440	440	10 productive use while enhancing public health and the
441	441	11 well-being of Illinois residents, including those in
442	442	12 environmental justice communities, as defined using
443	443	13 existing methodologies and findings used by the Agency
444	444	14 and its Administrator in its Illinois Solar for All
445	445	15 Program. The Agency shall also consider other
446	446	16 approaches, in addition to competitive procurements,
447	447	17 to procure renewable energy credits from new and
448	448	18 existing hydropower facilities to support the
449	449	19 development and maintenance of these facilities. The
450	450	20 Agency shall explore options to convert existing dams
451	451	21 but shall not consider approaches to develop new dams
452	452	22 where they do not already exist.
453	453	23 (ii) In any given delivery year, if forecasted
454	454	24 expenses are less than the maximum budget available
455	455	25 under subparagraph (E) of this paragraph (1), the
456	456	26 Agency shall continue to procure new renewable energy
457	457
458	458
459	459
460	460
461	461
462	462	SB2289 - 12 - LRB104 06374 AAS 16410 b
463	463
464	464
465	465	SB2289- 13 -LRB104 06374 AAS 16410 b SB2289 - 13 - LRB104 06374 AAS 16410 b
466	466	SB2289 - 13 - LRB104 06374 AAS 16410 b
467	467	1 credits until that budget is exhausted in the manner
468	468	2 outlined in item (i) of this subparagraph (C).
469	469	3 (iii) For purposes of this Section:
470	470	4 "New wind projects" means wind renewable energy
471	471	5 facilities that are energized after June 1, 2017 for
472	472	6 the delivery year commencing June 1, 2017.
473	473	7 "New photovoltaic projects" means photovoltaic
474	474	8 renewable energy facilities that are energized after
475	475	9 June 1, 2017. Photovoltaic projects developed under
476	476	10 Section 1-56 of this Act shall not apply towards the
477	477	11 new photovoltaic project requirements in this
478	478	12 subparagraph (C).
479	479	13 For purposes of calculating whether the Agency has
480	480	14 procured enough new wind and solar renewable energy
481	481	15 credits required by this subparagraph (C), renewable
482	482	16 energy facilities that have a multi-year renewable
483	483	17 energy credit delivery contract with the utility
484	484	18 through at least delivery year 2030 shall be
485	485	19 considered new, however no renewable energy credits
486	486	20 from contracts entered into before June 1, 2021 shall
487	487	21 be used to calculate whether the Agency has procured
488	488	22 the correct proportion of new wind and new solar
489	489	23 contracts described in this subparagraph (C) for
490	490	24 delivery year 2021 and thereafter.
491	491	25 (D) Renewable energy credits shall be cost effective.
492	492	26 For purposes of this subsection (c), "cost effective"
493	493
494	494
495	495
496	496
497	497
498	498	SB2289 - 13 - LRB104 06374 AAS 16410 b
499	499
500	500
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502	502	SB2289 - 14 - LRB104 06374 AAS 16410 b
503	503	1 means that the costs of procuring renewable energy
504	504	2 resources do not cause the limit stated in subparagraph
505	505	3 (E) of this paragraph (1) to be exceeded and, for
506	506	4 renewable energy credits procured through a competitive
507	507	5 procurement event, do not exceed benchmarks based on
508	508	6 market prices for like products in the region. For
509	509	7 purposes of this subsection (c), "like products" means
510	510	8 contracts for renewable energy credits from the same or
511	511	9 substantially similar technology, same or substantially
512	512	10 similar vintage (new or existing), the same or
513	513	11 substantially similar quantity, and the same or
514	514	12 substantially similar contract length and structure.
515	515	13 Benchmarks shall reflect development, financing, or
516	516	14 related costs resulting from requirements imposed through
517	517	15 other provisions of State law, including, but not limited
518	518	16 to, requirements in subparagraphs (P) and (Q) of this
519	519	17 paragraph (1) and the Renewable Energy Facilities
520	520	18 Agricultural Impact Mitigation Act. Confidential
521	521	19 benchmarks shall be developed by the procurement
522	522	20 administrator, in consultation with the Commission staff,
523	523	21 Agency staff, and the procurement monitor and shall be
524	524	22 subject to Commission review and approval. If price
525	525	23 benchmarks for like products in the region are not
526	526	24 available, the procurement administrator shall establish
527	527	25 price benchmarks based on publicly available data on
528	528	26 regional technology costs and expected current and future
529	529
530	530
531	531
532	532
533	533
534	534	SB2289 - 14 - LRB104 06374 AAS 16410 b
535	535
536	536
537	537	SB2289- 15 -LRB104 06374 AAS 16410 b SB2289 - 15 - LRB104 06374 AAS 16410 b
538	538	SB2289 - 15 - LRB104 06374 AAS 16410 b
539	539	1 regional energy prices. The benchmarks in this Section
540	540	2 shall not be used to curtail or otherwise reduce
541	541	3 contractual obligations entered into by or through the
542	542	4 Agency prior to June 1, 2017 (the effective date of Public
543	543	5 Act 99-906).
544	544	6 (E) For purposes of this subsection (c), the required
545	545	7 procurement of cost-effective renewable energy resources
546	546	8 for a particular year commencing prior to June 1, 2017
547	547	9 shall be measured as a percentage of the actual amount of
548	548	10 electricity (megawatt-hours) supplied by the electric
549	549	11 utility to eligible retail customers in the delivery year
550	550	12 ending immediately prior to the procurement, and, for
551	551	13 delivery years commencing on and after June 1, 2017, the
552	552	14 required procurement of cost-effective renewable energy
553	553	15 resources for a particular year shall be measured as a
554	554	16 percentage of the actual amount of electricity
555	555	17 (megawatt-hours) delivered by the electric utility in the
556	556	18 delivery year ending immediately prior to the procurement,
557	557	19 to all retail customers in its service territory. For
558	558	20 purposes of this subsection (c), the amount paid per
559	559	21 kilowatthour means the total amount paid for electric
560	560	22 service expressed on a per kilowatthour basis. For
561	561	23 purposes of this subsection (c), the total amount paid for
562	562	24 electric service includes without limitation amounts paid
563	563	25 for supply, transmission, capacity, distribution,
564	564	26 surcharges, and add-on taxes.
565	565
566	566
567	567
568	568
569	569
570	570	SB2289 - 15 - LRB104 06374 AAS 16410 b
571	571
572	572
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574	574	SB2289 - 16 - LRB104 06374 AAS 16410 b
575	575	1 Notwithstanding the requirements of this subsection
576	576	2 (c), the total of renewable energy resources procured
577	577	3 under the procurement plan for any single year shall be
578	578	4 subject to the limitations of this subparagraph (E). Such
579	579	5 procurement shall be reduced for all retail customers
580	580	6 based on the amount necessary to limit the annual
581	581	7 estimated average net increase due to the costs of these
582	582	8 resources included in the amounts paid by eligible retail
583	583	9 customers in connection with electric service to no more
584	584	10 than 4.25% of the amount paid per kilowatthour by those
585	585	11 customers during the year ending May 31, 2009. To arrive
586	586	12 at a maximum dollar amount of renewable energy resources
587	587	13 to be procured for the particular delivery year, the
588	588	14 resulting per kilowatthour amount shall be applied to the
589	589	15 actual amount of kilowatthours of electricity delivered,
590	590	16 or applicable portion of such amount as specified in
591	591	17 paragraph (1) of this subsection (c), as applicable, by
592	592	18 the electric utility in the delivery year immediately
593	593	19 prior to the procurement to all retail customers in its
594	594	20 service territory. The calculations required by this
595	595	21 subparagraph (E) shall be made only once for each delivery
596	596	22 year at the time that the renewable energy resources are
597	597	23 procured. Once the determination as to the amount of
598	598	24 renewable energy resources to procure is made based on the
599	599	25 calculations set forth in this subparagraph (E) and the
600	600	26 contracts procuring those amounts are executed, no
601	601
602	602
603	603
604	604
605	605
606	606	SB2289 - 16 - LRB104 06374 AAS 16410 b
607	607
608	608
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610	610	SB2289 - 17 - LRB104 06374 AAS 16410 b
611	611	1 subsequent rate impact determinations shall be made and no
612	612	2 adjustments to those contract amounts shall be allowed.
613	613	3 All costs incurred under such contracts shall be fully
614	614	4 recoverable by the electric utility as provided in this
615	615	5 Section.
616	616	6 (F) If the limitation on the amount of renewable
617	617	7 energy resources procured in subparagraph (E) of this
618	618	8 paragraph (1) prevents the Agency from meeting all of the
619	619	9 goals in this subsection (c), the Agency's long-term plan
620	620	10 shall prioritize compliance with the requirements of this
621	621	11 subsection (c) regarding renewable energy credits in the
622	622	12 following order:
623	623	13 (i) renewable energy credits under existing
624	624	14 contractual obligations as of June 1, 2021;
625	625	15 (i-5) funding for the Illinois Solar for All
626	626	16 Program, as described in subparagraph (O) of this
627	627	17 paragraph (1);
628	628	18 (ii) renewable energy credits necessary to comply
629	629	19 with the new wind and new photovoltaic procurement
630	630	20 requirements described in items (i) through (iii) of
631	631	21 subparagraph (C) of this paragraph (1); and
632	632	22 (iii) renewable energy credits necessary to meet
633	633	23 the remaining requirements of this subsection (c).
634	634	24 (G) The following provisions shall apply to the
635	635	25 Agency's procurement of renewable energy credits under
636	636	26 this subsection (c):
637	637
638	638
639	639
640	640
641	641
642	642	SB2289 - 17 - LRB104 06374 AAS 16410 b
643	643
644	644
645	645	SB2289- 18 -LRB104 06374 AAS 16410 b SB2289 - 18 - LRB104 06374 AAS 16410 b
646	646	SB2289 - 18 - LRB104 06374 AAS 16410 b
647	647	1 (i) Notwithstanding whether a long-term renewable
648	648	2 resources procurement plan has been approved, the
649	649	3 Agency shall conduct an initial forward procurement
650	650	4 for renewable energy credits from new utility-scale
651	651	5 wind projects within 160 days after June 1, 2017 (the
652	652	6 effective date of Public Act 99-906). For the purposes
653	653	7 of this initial forward procurement, the Agency shall
654	654	8 solicit 15-year contracts for delivery of 1,000,000
655	655	9 renewable energy credits delivered annually from new
656	656	10 utility-scale wind projects to begin delivery on June
657	657	11 1, 2019, if available, but not later than June 1, 2021,
658	658	12 unless the project has delays in the establishment of
659	659	13 an operating interconnection with the applicable
660	660	14 transmission or distribution system as a result of the
661	661	15 actions or inactions of the transmission or
662	662	16 distribution provider, or other causes for force
663	663	17 majeure as outlined in the procurement contract, in
664	664	18 which case, not later than June 1, 2022. Payments to
665	665	19 suppliers of renewable energy credits shall commence
666	666	20 upon delivery. Renewable energy credits procured under
667	667	21 this initial procurement shall be included in the
668	668	22 Agency's long-term plan and shall apply to all
669	669	23 renewable energy goals in this subsection (c).
670	670	24 (ii) Notwithstanding whether a long-term renewable
671	671	25 resources procurement plan has been approved, the
672	672	26 Agency shall conduct an initial forward procurement
673	673
674	674
675	675
676	676
677	677
678	678	SB2289 - 18 - LRB104 06374 AAS 16410 b
679	679
680	680
681	681	SB2289- 19 -LRB104 06374 AAS 16410 b SB2289 - 19 - LRB104 06374 AAS 16410 b
682	682	SB2289 - 19 - LRB104 06374 AAS 16410 b
683	683	1 for renewable energy credits from new utility-scale
684	684	2 solar projects and brownfield site photovoltaic
685	685	3 projects within one year after June 1, 2017 (the
686	686	4 effective date of Public Act 99-906). For the purposes
687	687	5 of this initial forward procurement, the Agency shall
688	688	6 solicit 15-year contracts for delivery of 1,000,000
689	689	7 renewable energy credits delivered annually from new
690	690	8 utility-scale solar projects and brownfield site
691	691	9 photovoltaic projects to begin delivery on June 1,
692	692	10 2019, if available, but not later than June 1, 2021,
693	693	11 unless the project has delays in the establishment of
694	694	12 an operating interconnection with the applicable
695	695	13 transmission or distribution system as a result of the
696	696	14 actions or inactions of the transmission or
697	697	15 distribution provider, or other causes for force
698	698	16 majeure as outlined in the procurement contract, in
699	699	17 which case, not later than June 1, 2022. The Agency may
700	700	18 structure this initial procurement in one or more
701	701	19 discrete procurement events. Payments to suppliers of
702	702	20 renewable energy credits shall commence upon delivery.
703	703	21 Renewable energy credits procured under this initial
704	704	22 procurement shall be included in the Agency's
705	705	23 long-term plan and shall apply to all renewable energy
706	706	24 goals in this subsection (c).
707	707	25 (iii) Notwithstanding whether the Commission has
708	708	26 approved the periodic long-term renewable resources
709	709
710	710
711	711
712	712
713	713
714	714	SB2289 - 19 - LRB104 06374 AAS 16410 b
715	715
716	716
717	717	SB2289- 20 -LRB104 06374 AAS 16410 b SB2289 - 20 - LRB104 06374 AAS 16410 b
718	718	SB2289 - 20 - LRB104 06374 AAS 16410 b
719	719	1 procurement plan revision described in Section
720	720	2 16-111.5 of the Public Utilities Act, the Agency shall
721	721	3 conduct at least one subsequent forward procurement
722	722	4 for renewable energy credits from new utility-scale
723	723	5 wind projects, new utility-scale solar projects, and
724	724	6 new brownfield site photovoltaic projects within 240
725	725	7 days after the effective date of this amendatory Act
726	726	8 of the 102nd General Assembly in quantities necessary
727	727	9 to meet the requirements of subparagraph (C) of this
728	728	10 paragraph (1) through the delivery year beginning June
729	729	11 1, 2021.
730	730	12 (iv) Notwithstanding whether the Commission has
731	731	13 approved the periodic long-term renewable resources
732	732	14 procurement plan revision described in Section
733	733	15 16-111.5 of the Public Utilities Act, the Agency shall
734	734	16 open capacity for each category in the Adjustable
735	735	17 Block program within 90 days after the effective date
736	736	18 of this amendatory Act of the 102nd General Assembly
737	737	19 manner:
738	738	20 (1) The Agency shall open the first block of
739	739	21 annual capacity for the category described in item
740	740	22 (i) of subparagraph (K) of this paragraph (1). The
741	741	23 first block of annual capacity for item (i) shall
742	742	24 be for at least 75 megawatts of total nameplate
743	743	25 capacity. The price of the renewable energy credit
744	744	26 for this block of capacity shall be 4% less than
745	745
746	746
747	747
748	748
749	749
750	750	SB2289 - 20 - LRB104 06374 AAS 16410 b
751	751
752	752
753	753	SB2289- 21 -LRB104 06374 AAS 16410 b SB2289 - 21 - LRB104 06374 AAS 16410 b
754	754	SB2289 - 21 - LRB104 06374 AAS 16410 b
755	755	1 the price of the last open block in this category.
756	756	2 Projects on a waitlist shall be awarded contracts
757	757	3 first in the order in which they appear on the
758	758	4 waitlist. Notwithstanding anything to the
759	759	5 contrary, for those renewable energy credits that
760	760	6 qualify and are procured under this subitem (1) of
761	761	7 this item (iv), the renewable energy credit
762	762	8 delivery contract value shall be paid in full,
763	763	9 based on the estimated generation during the first
764	764	10 15 years of operation, by the contracting
765	765	11 utilities at the time that the facility producing
766	766	12 the renewable energy credits is interconnected at
767	767	13 the distribution system level of the utility and
768	768	14 verified as energized and in compliance by the
769	769	15 Program Administrator. The electric utility shall
770	770	16 receive and retire all renewable energy credits
771	771	17 generated by the project for the first 15 years of
772	772	18 operation. Renewable energy credits generated by
773	773	19 the project thereafter shall not be transferred
774	774	20 under the renewable energy credit delivery
775	775	21 contract with the counterparty electric utility.
776	776	22 (2) The Agency shall open the first block of
777	777	23 annual capacity for the category described in item
778	778	24 (ii) of subparagraph (K) of this paragraph (1).
779	779	25 The first block of annual capacity for item (ii)
780	780	26 shall be for at least 75 megawatts of total
781	781
782	782
783	783
784	784
785	785
786	786	SB2289 - 21 - LRB104 06374 AAS 16410 b
787	787
788	788
789	789	SB2289- 22 -LRB104 06374 AAS 16410 b SB2289 - 22 - LRB104 06374 AAS 16410 b
790	790	SB2289 - 22 - LRB104 06374 AAS 16410 b
791	791	1 nameplate capacity.
792	792	2 (A) The price of the renewable energy
793	793	3 credit for any project on a waitlist for this
794	794	4 category before the opening of this block
795	795	5 shall be 4% less than the price of the last
796	796	6 open block in this category. Projects on the
797	797	7 waitlist shall be awarded contracts first in
798	798	8 the order in which they appear on the
799	799	9 waitlist. Any projects that are less than or
800	800	10 equal to 25 kilowatts in size on the waitlist
801	801	11 for this capacity shall be moved to the
802	802	12 waitlist for paragraph (1) of this item (iv).
803	803	13 Notwithstanding anything to the contrary,
804	804	14 projects that were on the waitlist prior to
805	805	15 opening of this block shall not be required to
806	806	16 be in compliance with the requirements of
807	807	17 subparagraph (Q) of this paragraph (1) of this
808	808	18 subsection (c). Notwithstanding anything to
809	809	19 the contrary, for those renewable energy
810	810	20 credits procured from projects that were on
811	811	21 the waitlist for this category before the
812	812	22 opening of this block 20% of the renewable
813	813	23 energy credit delivery contract value, based
814	814	24 on the estimated generation during the first
815	815	25 15 years of operation, shall be paid by the
816	816	26 contracting utilities at the time that the
817	817
818	818
819	819
820	820
821	821
822	822	SB2289 - 22 - LRB104 06374 AAS 16410 b
823	823
824	824
825	825	SB2289- 23 -LRB104 06374 AAS 16410 b SB2289 - 23 - LRB104 06374 AAS 16410 b
826	826	SB2289 - 23 - LRB104 06374 AAS 16410 b
827	827	1 facility producing the renewable energy
828	828	2 credits is interconnected at the distribution
829	829	3 system level of the utility and verified as
830	830	4 energized by the Program Administrator. The
831	831	5 remaining portion shall be paid ratably over
832	832	6 the subsequent 4-year period. The electric
833	833	7 utility shall receive and retire all renewable
834	834	8 energy credits generated by the project during
835	835	9 the first 15 years of operation. Renewable
836	836	10 energy credits generated by the project
837	837	11 thereafter shall not be transferred under the
838	838	12 renewable energy credit delivery contract with
839	839	13 the counterparty electric utility.
840	840	14 (B) The price of renewable energy credits
841	841	15 for any project not on the waitlist for this
842	842	16 category before the opening of the block shall
843	843	17 be determined and published by the Agency.
844	844	18 Projects not on a waitlist as of the opening
845	845	19 of this block shall be subject to the
846	846	20 requirements of subparagraph (Q) of this
847	847	21 paragraph (1), as applicable. Projects not on
848	848	22 a waitlist as of the opening of this block
849	849	23 shall be subject to the contract provisions
850	850	24 outlined in item (iii) of subparagraph (L) of
851	851	25 this paragraph (1). The Agency shall strive to
852	852	26 publish updated prices and an updated
853	853
854	854
855	855
856	856
857	857
858	858	SB2289 - 23 - LRB104 06374 AAS 16410 b
859	859
860	860
861	861	SB2289- 24 -LRB104 06374 AAS 16410 b SB2289 - 24 - LRB104 06374 AAS 16410 b
862	862	SB2289 - 24 - LRB104 06374 AAS 16410 b
863	863	1 renewable energy credit delivery contract as
864	864	2 quickly as possible.
865	865	3 (3) For opening the first 2 blocks of annual
866	866	4 capacity for projects participating in item (iii)
867	867	5 of subparagraph (K) of paragraph (1) of subsection
868	868	6 (c), projects shall be selected exclusively from
869	869	7 those projects on the ordinal waitlists of
870	870	8 community renewable generation projects
871	871	9 established by the Agency based on the status of
872	872	10 those ordinal waitlists as of December 31, 2020,
873	873	11 and only those projects previously determined to
874	874	12 be eligible for the Agency's April 2019 community
875	875	13 solar project selection process.
876	876	14 The first 2 blocks of annual capacity for item
877	877	15 (iii) shall be for 250 megawatts of total
878	878	16 nameplate capacity, with both blocks opening
879	879	17 simultaneously under the schedule outlined in the
880	880	18 paragraphs below. Projects shall be selected as
881	881	19 follows:
882	882	20 (A) The geographic balance of selected
883	883	21 projects shall follow the Group classification
884	884	22 found in the Agency's Revised Long-Term
885	885	23 Renewable Resources Procurement Plan, with 70%
886	886	24 of capacity allocated to projects on the Group
887	887	25 B waitlist and 30% of capacity allocated to
888	888	26 projects on the Group A waitlist.
889	889
890	890
891	891
892	892
893	893
894	894	SB2289 - 24 - LRB104 06374 AAS 16410 b
895	895
896	896
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898	898	SB2289 - 25 - LRB104 06374 AAS 16410 b
899	899	1 (B) Contract awards for waitlisted
900	900	2 projects shall be allocated proportionate to
901	901	3 the total nameplate capacity amount across
902	902	4 both ordinal waitlists associated with that
903	903	5 applicant firm or its affiliates, subject to
904	904	6 the following conditions.
905	905	7 (i) Each applicant firm having a
906	906	8 waitlisted project eligible for selection
907	907	9 shall receive no less than 500 kilowatts
908	908	10 in awarded capacity across all groups, and
909	909	11 no approved vendor may receive more than
910	910	12 20% of each Group's waitlist allocation.
911	911	13 (ii) Each applicant firm, upon
912	912	14 receiving an award of program capacity
913	913	15 proportionate to its waitlisted capacity,
914	914	16 may then determine which waitlisted
915	915	17 projects it chooses to be selected for a
916	916	18 contract award up to that capacity amount.
917	917	19 (iii) Assuming all other program
918	918	20 requirements are met, applicant firms may
919	919	21 adjust the nameplate capacity of applicant
920	920	22 projects without losing waitlist
921	921	23 eligibility, so long as no project is
922	922	24 greater than 2,000 kilowatts in size.
923	923	25 (iv) Assuming all other program
924	924	26 requirements are met, applicant firms may
925	925
926	926
927	927
928	928
929	929
930	930	SB2289 - 25 - LRB104 06374 AAS 16410 b
931	931
932	932
933	933	SB2289- 26 -LRB104 06374 AAS 16410 b SB2289 - 26 - LRB104 06374 AAS 16410 b
934	934	SB2289 - 26 - LRB104 06374 AAS 16410 b
935	935	1 adjust the expected production associated
936	936	2 with applicant projects, subject to
937	937	3 verification by the Program Administrator.
938	938	4 (C) After a review of affiliate
939	939	5 information and the current ordinal waitlists,
940	940	6 the Agency shall announce the nameplate
941	941	7 capacity award amounts associated with
942	942	8 applicant firms no later than 90 days after
943	943	9 the effective date of this amendatory Act of
944	944	10 the 102nd General Assembly.
945	945	11 (D) Applicant firms shall submit their
946	946	12 portfolio of projects used to satisfy those
947	947	13 contract awards no less than 90 days after the
948	948	14 Agency's announcement. The total nameplate
949	949	15 capacity of all projects used to satisfy that
950	950	16 portfolio shall be no greater than the
951	951	17 Agency's nameplate capacity award amount
952	952	18 associated with that applicant firm. An
953	953	19 applicant firm may decline, in whole or in
954	954	20 part, its nameplate capacity award without
955	955	21 penalty, with such unmet capacity rolled over
956	956	22 to the next block opening for project
957	957	23 selection under item (iii) of subparagraph (K)
958	958	24 of this subsection (c). Any projects not
959	959	25 included in an applicant firm's portfolio may
960	960	26 reapply without prejudice upon the next block
961	961
962	962
963	963
964	964
965	965
966	966	SB2289 - 26 - LRB104 06374 AAS 16410 b
967	967
968	968
969	969	SB2289- 27 -LRB104 06374 AAS 16410 b SB2289 - 27 - LRB104 06374 AAS 16410 b
970	970	SB2289 - 27 - LRB104 06374 AAS 16410 b
971	971	1 reopening for project selection under item
972	972	2 (iii) of subparagraph (K) of this subsection
973	973	3 (c).
974	974	4 (E) The renewable energy credit delivery
975	975	5 contract shall be subject to the contract and
976	976	6 payment terms outlined in item (iv) of
977	977	7 subparagraph (L) of this subsection (c).
978	978	8 Contract instruments used for this
979	979	9 subparagraph shall contain the following
980	980	10 terms:
981	981	11 (i) Renewable energy credit prices
982	982	12 shall be fixed, without further adjustment
983	983	13 under any other provision of this Act or
984	984	14 for any other reason, at 10% lower than
985	985	15 prices applicable to the last open block
986	986	16 for this category, inclusive of any adders
987	987	17 available for achieving a minimum of 50%
988	988	18 of subscribers to the project's nameplate
989	989	19 capacity being residential or small
990	990	20 commercial customers with subscriptions of
991	991	21 below 25 kilowatts in size;
992	992	22 (ii) A requirement that a minimum of
993	993	23 50% of subscribers to the project's
994	994	24 nameplate capacity be residential or small
995	995	25 commercial customers with subscriptions of
996	996	26 below 25 kilowatts in size;
997	997
998	998
999	999
1000	1000
1001	1001
1002	1002	SB2289 - 27 - LRB104 06374 AAS 16410 b
1003	1003
1004	1004
1005	1005	SB2289- 28 -LRB104 06374 AAS 16410 b SB2289 - 28 - LRB104 06374 AAS 16410 b
1006	1006	SB2289 - 28 - LRB104 06374 AAS 16410 b
1007	1007	1 (iii) Permission for the ability of a
1008	1008	2 contract holder to substitute projects
1009	1009	3 with other waitlisted projects without
1010	1010	4 penalty should a project receive a
1011	1011	5 non-binding estimate of costs to construct
1012	1012	6 the interconnection facilities and any
1013	1013	7 required distribution upgrades associated
1014	1014	8 with that project of greater than 30 cents
1015	1015	9 per watt AC of that project's nameplate
1016	1016	10 capacity. In developing the applicable
1017	1017	11 contract instrument, the Agency may
1018	1018	12 consider whether other circumstances
1019	1019	13 outside of the control of the applicant
1020	1020	14 firm should also warrant project
1021	1021	15 substitution rights.
1022	1022	16 The Agency shall publish a finalized
1023	1023	17 updated renewable energy credit delivery
1024	1024	18 contract developed consistent with these terms
1025	1025	19 and conditions no less than 30 days before
1026	1026	20 applicant firms must submit their portfolio of
1027	1027	21 projects pursuant to item (D).
1028	1028	22 (F) To be eligible for an award, the
1029	1029	23 applicant firm shall certify that not less
1030	1030	24 than prevailing wage, as determined pursuant
1031	1031	25 to the Illinois Prevailing Wage Act, was or
1032	1032	26 will be paid to employees who are engaged in
1033	1033
1034	1034
1035	1035
1036	1036
1037	1037
1038	1038	SB2289 - 28 - LRB104 06374 AAS 16410 b
1039	1039
1040	1040
1041	1041	SB2289- 29 -LRB104 06374 AAS 16410 b SB2289 - 29 - LRB104 06374 AAS 16410 b
1042	1042	SB2289 - 29 - LRB104 06374 AAS 16410 b
1043	1043	1 construction activities associated with a
1044	1044	2 selected project.
1045	1045	3 (4) The Agency shall open the first block of
1046	1046	4 annual capacity for the category described in item
1047	1047	5 (iv) of subparagraph (K) of this paragraph (1).
1048	1048	6 The first block of annual capacity for item (iv)
1049	1049	7 shall be for at least 50 megawatts of total
1050	1050	8 nameplate capacity. Renewable energy credit prices
1051	1051	9 shall be fixed, without further adjustment under
1052	1052	10 any other provision of this Act or for any other
1053	1053	11 reason, at the price in the last open block in the
1054	1054	12 category described in item (ii) of subparagraph
1055	1055	13 (K) of this paragraph (1). Pricing for future
1056	1056	14 blocks of annual capacity for this category may be
1057	1057	15 adjusted in the Agency's second revision to its
1058	1058	16 Long-Term Renewable Resources Procurement Plan.
1059	1059	17 Projects in this category shall be subject to the
1060	1060	18 contract terms outlined in item (iv) of
1061	1061	19 subparagraph (L) of this paragraph (1).
1062	1062	20 (5) The Agency shall open the equivalent of 2
1063	1063	21 years of annual capacity for the category
1064	1064	22 described in item (v) of subparagraph (K) of this
1065	1065	23 paragraph (1). The first block of annual capacity
1066	1066	24 for item (v) shall be for at least 10 megawatts of
1067	1067	25 total nameplate capacity. Notwithstanding the
1068	1068	26 provisions of item (v) of subparagraph (K) of this
1069	1069
1070	1070
1071	1071
1072	1072
1073	1073
1074	1074	SB2289 - 29 - LRB104 06374 AAS 16410 b
1075	1075
1076	1076
1077	1077	SB2289- 30 -LRB104 06374 AAS 16410 b SB2289 - 30 - LRB104 06374 AAS 16410 b
1078	1078	SB2289 - 30 - LRB104 06374 AAS 16410 b
1079	1079	1 paragraph (1), for the purpose of this initial
1080	1080	2 block, the agency shall accept new project
1081	1081	3 applications intended to increase the diversity of
1082	1082	4 areas hosting community solar projects, the
1083	1083	5 business models of projects, and the size of
1084	1084	6 projects, as described by the Agency in its
1085	1085	7 long-term renewable resources procurement plan
1086	1086	8 that is approved as of the effective date of this
1087	1087	9 amendatory Act of the 102nd General Assembly.
1088	1088	10 Projects in this category shall be subject to the
1089	1089	11 contract terms outlined in item (iii) of
1090	1090	12 subsection (L) of this paragraph (1).
1091	1091	13 (6) The Agency shall open the first blocks of
1092	1092	14 annual capacity for the category described in item
1093	1093	15 (vi) of subparagraph (K) of this paragraph (1),
1094	1094	16 with allocations of capacity within the block
1095	1095	17 generally matching the historical share of block
1096	1096	18 capacity allocated between the category described
1097	1097	19 in items (i) and (ii) of subparagraph (K) of this
1098	1098	20 paragraph (1). The first two blocks of annual
1099	1099	21 capacity for item (vi) shall be for at least 75
1100	1100	22 megawatts of total nameplate capacity. The price
1101	1101	23 of renewable energy credits for the blocks of
1102	1102	24 capacity shall be 4% less than the price of the
1103	1103	25 last open blocks in the categories described in
1104	1104	26 items (i) and (ii) of subparagraph (K) of this
1105	1105
1106	1106
1107	1107
1108	1108
1109	1109
1110	1110	SB2289 - 30 - LRB104 06374 AAS 16410 b
1111	1111
1112	1112
1113	1113	SB2289- 31 -LRB104 06374 AAS 16410 b SB2289 - 31 - LRB104 06374 AAS 16410 b
1114	1114	SB2289 - 31 - LRB104 06374 AAS 16410 b
1115	1115	1 paragraph (1). Pricing for future blocks of annual
1116	1116	2 capacity for this category may be adjusted in the
1117	1117	3 Agency's second revision to its Long-Term
1118	1118	4 Renewable Resources Procurement Plan. Projects in
1119	1119	5 this category shall be subject to the applicable
1120	1120	6 contract terms outlined in items (ii) and (iii) of
1121	1121	7 subparagraph (L) of this paragraph (1).
1122	1122	8 (v) Upon the effective date of this amendatory Act
1123	1123	9 of the 102nd General Assembly, for all competitive
1124	1124	10 procurements and any procurements of renewable energy
1125	1125	11 credit from new utility-scale wind and new
1126	1126	12 utility-scale photovoltaic projects, the Agency shall
1127	1127	13 procure indexed renewable energy credits and direct
1128	1128	14 respondents to offer a strike price.
1129	1129	15 (1) The purchase price of the indexed
1130	1130	16 renewable energy credit payment shall be
1131	1131	17 calculated for each settlement period. That
1132	1132	18 payment, for any settlement period, shall be equal
1133	1133	19 to the difference resulting from subtracting the
1134	1134	20 strike price from the index price for that
1135	1135	21 settlement period. If this difference results in a
1136	1136	22 negative number, the indexed REC counterparty
1137	1137	23 shall owe the seller the absolute value multiplied
1138	1138	24 by the quantity of energy produced in the relevant
1139	1139	25 settlement period. If this difference results in a
1140	1140	26 positive number, the seller shall owe the indexed
1141	1141
1142	1142
1143	1143
1144	1144
1145	1145
1146	1146	SB2289 - 31 - LRB104 06374 AAS 16410 b
1147	1147
1148	1148
1149	1149	SB2289- 32 -LRB104 06374 AAS 16410 b SB2289 - 32 - LRB104 06374 AAS 16410 b
1150	1150	SB2289 - 32 - LRB104 06374 AAS 16410 b
1151	1151	1 REC counterparty this amount multiplied by the
1152	1152	2 quantity of energy produced in the relevant
1153	1153	3 settlement period.
1154	1154	4 (2) Parties shall cash settle every month,
1155	1155	5 summing up all settlements (both positive and
1156	1156	6 negative, if applicable) for the prior month.
1157	1157	7 (3) To ensure funding in the annual budget
1158	1158	8 established under subparagraph (E) for indexed
1159	1159	9 renewable energy credit procurements for each year
1160	1160	10 of the term of such contracts, which must have a
1161	1161	11 minimum tenure of 20 calendar years, the
1162	1162	12 procurement administrator, Agency, Commission
1163	1163	13 staff, and procurement monitor shall quantify the
1164	1164	14 annual cost of the contract by utilizing an
1165	1165	15 industry-standard, third-party forward price curve
1166	1166	16 for energy at the appropriate hub or load zone,
1167	1167	17 including the estimated magnitude and timing of
1168	1168	18 the price effects related to federal carbon
1169	1169	19 controls. Each forward price curve shall contain a
1170	1170	20 specific value of the forecasted market price of
1171	1171	21 electricity for each annual delivery year of the
1172	1172	22 contract. For procurement planning purposes, the
1173	1173	23 impact on the annual budget for the cost of
1174	1174	24 indexed renewable energy credits for each delivery
1175	1175	25 year shall be determined as the expected annual
1176	1176	26 contract expenditure for that year, equaling the
1177	1177
1178	1178
1179	1179
1180	1180
1181	1181
1182	1182	SB2289 - 32 - LRB104 06374 AAS 16410 b
1183	1183
1184	1184
1185	1185	SB2289- 33 -LRB104 06374 AAS 16410 b SB2289 - 33 - LRB104 06374 AAS 16410 b
1186	1186	SB2289 - 33 - LRB104 06374 AAS 16410 b
1187	1187	1 difference between (i) the sum across all relevant
1188	1188	2 contracts of the applicable strike price
1189	1189	3 multiplied by contract quantity and (ii) the sum
1190	1190	4 across all relevant contracts of the forward price
1191	1191	5 curve for the applicable load zone for that year
1192	1192	6 multiplied by contract quantity. The contracting
1193	1193	7 utility shall not assume an obligation in excess
1194	1194	8 of the estimated annual cost of the contracts for
1195	1195	9 indexed renewable energy credits. Forward curves
1196	1196	10 shall be revised on an annual basis as updated
1197	1197	11 forward price curves are released and filed with
1198	1198	12 the Commission in the proceeding approving the
1199	1199	13 Agency's most recent long-term renewable resources
1200	1200	14 procurement plan. If the expected contract spend
1201	1201	15 is higher or lower than the total quantity of
1202	1202	16 contracts multiplied by the forward price curve
1203	1203	17 value for that year, the forward price curve shall
1204	1204	18 be updated by the procurement administrator, in
1205	1205	19 consultation with the Agency, Commission staff,
1206	1206	20 and procurement monitors, using then-currently
1207	1207	21 available price forecast data and additional
1208	1208	22 budget dollars shall be obligated or reobligated
1209	1209	23 as appropriate.
1210	1210	24 (4) To ensure that indexed renewable energy
1211	1211	25 credit prices remain predictable and affordable,
1212	1212	26 the Agency may consider the institution of a price
1213	1213
1214	1214
1215	1215
1216	1216
1217	1217
1218	1218	SB2289 - 33 - LRB104 06374 AAS 16410 b
1219	1219
1220	1220
1221	1221	SB2289- 34 -LRB104 06374 AAS 16410 b SB2289 - 34 - LRB104 06374 AAS 16410 b
1222	1222	SB2289 - 34 - LRB104 06374 AAS 16410 b
1223	1223	1 collar on REC prices paid under indexed renewable
1224	1224	2 energy credit procurements establishing floor and
1225	1225	3 ceiling REC prices applicable to indexed REC
1226	1226	4 contract prices. Any price collars applicable to
1227	1227	5 indexed REC procurements shall be proposed by the
1228	1228	6 Agency through its long-term renewable resources
1229	1229	7 procurement plan.
1230	1230	8 (vi) All procurements under this subparagraph (G),
1231	1231	9 including the procurement of renewable energy credits
1232	1232	10 from hydropower facilities, shall comply with the
1233	1233	11 geographic requirements in subparagraph (I) of this
1234	1234	12 paragraph (1) and shall follow the procurement
1235	1235	13 processes and procedures described in this Section and
1236	1236	14 Section 16-111.5 of the Public Utilities Act to the
1237	1237	15 extent practicable, and these processes and procedures
1238	1238	16 may be expedited to accommodate the schedule
1239	1239	17 established by this subparagraph (G).
1240	1240	18 (vii) On and after the effective date of this
1241	1241	19 amendatory Act of the 103rd General Assembly, for all
1242	1242	20 procurements of renewable energy credits from
1243	1243	21 hydropower facilities, the Agency shall establish
1244	1244	22 contract terms designed to optimize existing
1245	1245	23 hydropower facilities through modernization or
1246	1246	24 retooling and establish new hydropower facilities at
1247	1247	25 existing dams. Procurements made under this item (vii)
1248	1248	26 shall prioritize projects located in designated
1249	1249
1250	1250
1251	1251
1252	1252
1253	1253
1254	1254	SB2289 - 34 - LRB104 06374 AAS 16410 b
1255	1255
1256	1256
1257	1257	SB2289- 35 -LRB104 06374 AAS 16410 b SB2289 - 35 - LRB104 06374 AAS 16410 b
1258	1258	SB2289 - 35 - LRB104 06374 AAS 16410 b
1259	1259	1 environmental justice communities, as defined in
1260	1260	2 subsection (b) of Section 1-56 of this Act, or in
1261	1261	3 projects located in units of local government with
1262	1262	4 median incomes that do not exceed 82% of the median
1263	1263	5 income of the State.
1264	1264	6 (H) The procurement of renewable energy resources for
1265	1265	7 a given delivery year shall be reduced as described in
1266	1266	8 this subparagraph (H) if an alternative retail electric
1267	1267	9 supplier meets the requirements described in this
1268	1268	10 subparagraph (H).
1269	1269	11 (i) Within 45 days after June 1, 2017 (the
1270	1270	12 effective date of Public Act 99-906), an alternative
1271	1271	13 retail electric supplier or its successor shall submit
1272	1272	14 an informational filing to the Illinois Commerce
1273	1273	15 Commission certifying that, as of December 31, 2015,
1274	1274	16 the alternative retail electric supplier owned one or
1275	1275	17 more electric generating facilities that generates
1276	1276	18 renewable energy resources as defined in Section 1-10
1277	1277	19 of this Act, provided that such facilities are not
1278	1278	20 powered by wind or photovoltaics, and the facilities
1279	1279	21 generate one renewable energy credit for each
1280	1280	22 megawatthour of energy produced from the facility.
1281	1281	23 The informational filing shall identify each
1282	1282	24 facility that was eligible to satisfy the alternative
1283	1283	25 retail electric supplier's obligations under Section
1284	1284	26 16-115D of the Public Utilities Act as described in
1285	1285
1286	1286
1287	1287
1288	1288
1289	1289
1290	1290	SB2289 - 35 - LRB104 06374 AAS 16410 b
1291	1291
1292	1292
1293	1293	SB2289- 36 -LRB104 06374 AAS 16410 b SB2289 - 36 - LRB104 06374 AAS 16410 b
1294	1294	SB2289 - 36 - LRB104 06374 AAS 16410 b
1295	1295	1 this item (i).
1296	1296	2 (ii) For a given delivery year, the alternative
1297	1297	3 retail electric supplier may elect to supply its
1298	1298	4 retail customers with renewable energy credits from
1299	1299	5 the facility or facilities described in item (i) of
1300	1300	6 this subparagraph (H) that continue to be owned by the
1301	1301	7 alternative retail electric supplier.
1302	1302	8 (iii) The alternative retail electric supplier
1303	1303	9 shall notify the Agency and the applicable utility, no
1304	1304	10 later than February 28 of the year preceding the
1305	1305	11 applicable delivery year or 15 days after June 1, 2017
1306	1306	12 (the effective date of Public Act 99-906), whichever
1307	1307	13 is later, of its election under item (ii) of this
1308	1308	14 subparagraph (H) to supply renewable energy credits to
1309	1309	15 retail customers of the utility. Such election shall
1310	1310	16 identify the amount of renewable energy credits to be
1311	1311	17 supplied by the alternative retail electric supplier
1312	1312	18 to the utility's retail customers and the source of
1313	1313	19 the renewable energy credits identified in the
1314	1314	20 informational filing as described in item (i) of this
1315	1315	21 subparagraph (H), subject to the following
1316	1316	22 limitations:
1317	1317	23 For the delivery year beginning June 1, 2018,
1318	1318	24 the maximum amount of renewable energy credits to
1319	1319	25 be supplied by an alternative retail electric
1320	1320	26 supplier under this subparagraph (H) shall be 68%
1321	1321
1322	1322
1323	1323
1324	1324
1325	1325
1326	1326	SB2289 - 36 - LRB104 06374 AAS 16410 b
1327	1327
1328	1328
1329	1329	SB2289- 37 -LRB104 06374 AAS 16410 b SB2289 - 37 - LRB104 06374 AAS 16410 b
1330	1330	SB2289 - 37 - LRB104 06374 AAS 16410 b
1331	1331	1 multiplied by 25% multiplied by 14.5% multiplied
1332	1332	2 by the amount of metered electricity
1333	1333	3 (megawatt-hours) delivered by the alternative
1334	1334	4 retail electric supplier to Illinois retail
1335	1335	5 customers during the delivery year ending May 31,
1336	1336	6 2016.
1337	1337	7 For delivery years beginning June 1, 2019 and
1338	1338	8 each year thereafter, the maximum amount of
1339	1339	9 renewable energy credits to be supplied by an
1340	1340	10 alternative retail electric supplier under this
1341	1341	11 subparagraph (H) shall be 68% multiplied by 50%
1342	1342	12 multiplied by 16% multiplied by the amount of
1343	1343	13 metered electricity (megawatt-hours) delivered by
1344	1344	14 the alternative retail electric supplier to
1345	1345	15 Illinois retail customers during the delivery year
1346	1346	16 ending May 31, 2016, provided that the 16% value
1347	1347	17 shall increase by 1.5% each delivery year
1348	1348	18 thereafter to 25% by the delivery year beginning
1349	1349	19 June 1, 2025, and thereafter the 25% value shall
1350	1350	20 apply to each delivery year.
1351	1351	21 For each delivery year, the total amount of
1352	1352	22 renewable energy credits supplied by all alternative
1353	1353	23 retail electric suppliers under this subparagraph (H)
1354	1354	24 shall not exceed 9% of the Illinois target renewable
1355	1355	25 energy credit quantity. The Illinois target renewable
1356	1356	26 energy credit quantity for the delivery year beginning
1357	1357
1358	1358
1359	1359
1360	1360
1361	1361
1362	1362	SB2289 - 37 - LRB104 06374 AAS 16410 b
1363	1363
1364	1364
1365	1365	SB2289- 38 -LRB104 06374 AAS 16410 b SB2289 - 38 - LRB104 06374 AAS 16410 b
1366	1366	SB2289 - 38 - LRB104 06374 AAS 16410 b
1367	1367	1 June 1, 2018 is 14.5% multiplied by the total amount of
1368	1368	2 metered electricity (megawatt-hours) delivered in the
1369	1369	3 delivery year immediately preceding that delivery
1370	1370	4 year, provided that the 14.5% shall increase by 1.5%
1371	1371	5 each delivery year thereafter to 25% by the delivery
1372	1372	6 year beginning June 1, 2025, and thereafter the 25%
1373	1373	7 value shall apply to each delivery year.
1374	1374	8 If the requirements set forth in items (i) through
1375	1375	9 (iii) of this subparagraph (H) are met, the charges
1376	1376	10 that would otherwise be applicable to the retail
1377	1377	11 customers of the alternative retail electric supplier
1378	1378	12 under paragraph (6) of this subsection (c) for the
1379	1379	13 applicable delivery year shall be reduced by the ratio
1380	1380	14 of the quantity of renewable energy credits supplied
1381	1381	15 by the alternative retail electric supplier compared
1382	1382	16 to that supplier's target renewable energy credit
1383	1383	17 quantity. The supplier's target renewable energy
1384	1384	18 credit quantity for the delivery year beginning June
1385	1385	19 1, 2018 is 14.5% multiplied by the total amount of
1386	1386	20 metered electricity (megawatt-hours) delivered by the
1387	1387	21 alternative retail supplier in that delivery year,
1388	1388	22 provided that the 14.5% shall increase by 1.5% each
1389	1389	23 delivery year thereafter to 25% by the delivery year
1390	1390	24 beginning June 1, 2025, and thereafter the 25% value
1391	1391	25 shall apply to each delivery year.
1392	1392	26 On or before April 1 of each year, the Agency shall
1393	1393
1394	1394
1395	1395
1396	1396
1397	1397
1398	1398	SB2289 - 38 - LRB104 06374 AAS 16410 b
1399	1399
1400	1400
1401	1401	SB2289- 39 -LRB104 06374 AAS 16410 b SB2289 - 39 - LRB104 06374 AAS 16410 b
1402	1402	SB2289 - 39 - LRB104 06374 AAS 16410 b
1403	1403	1 annually publish a report on its website that
1404	1404	2 identifies the aggregate amount of renewable energy
1405	1405	3 credits supplied by alternative retail electric
1406	1406	4 suppliers under this subparagraph (H).
1407	1407	5 (I) The Agency shall design its long-term renewable
1408	1408	6 energy procurement plan to maximize the State's interest
1409	1409	7 in the health, safety, and welfare of its residents,
1410	1410	8 including but not limited to minimizing sulfur dioxide,
1411	1411	9 nitrogen oxide, particulate matter and other pollution
1412	1412	10 that adversely affects public health in this State,
1413	1413	11 increasing fuel and resource diversity in this State,
1414	1414	12 enhancing the reliability and resiliency of the
1415	1415	13 electricity distribution system in this State, meeting
1416	1416	14 goals to limit carbon dioxide emissions under federal or
1417	1417	15 State law, and contributing to a cleaner and healthier
1418	1418	16 environment for the citizens of this State. In order to
1419	1419	17 further these legislative purposes, renewable energy
1420	1420	18 credits shall be eligible to be counted toward the
1421	1421	19 renewable energy requirements of this subsection (c) if
1422	1422	20 they are generated from facilities located in this State.
1423	1423	21 The Agency may qualify renewable energy credits from
1424	1424	22 facilities located in states adjacent to Illinois or
1425	1425	23 renewable energy credits associated with the electricity
1426	1426	24 generated by a utility-scale wind energy facility or
1427	1427	25 utility-scale photovoltaic facility and transmitted by a
1428	1428	26 qualifying direct current project described in subsection
1429	1429
1430	1430
1431	1431
1432	1432
1433	1433
1434	1434	SB2289 - 39 - LRB104 06374 AAS 16410 b
1435	1435
1436	1436
1437	1437	SB2289- 40 -LRB104 06374 AAS 16410 b SB2289 - 40 - LRB104 06374 AAS 16410 b
1438	1438	SB2289 - 40 - LRB104 06374 AAS 16410 b
1439	1439	1 (b-5) of Section 8-406 of the Public Utilities Act to a
1440	1440	2 delivery point on the electric transmission grid located
1441	1441	3 in this State or a state adjacent to Illinois, if the
1442	1442	4 generator demonstrates and the Agency determines that the
1443	1443	5 operation of such facility or facilities will help promote
1444	1444	6 the State's interest in the health, safety, and welfare of
1445	1445	7 its residents based on the public interest criteria
1446	1446	8 described above. For the purposes of this Section,
1447	1447	9 renewable resources that are delivered via a high voltage
1448	1448	10 direct current converter station located in Illinois shall
1449	1449	11 be deemed generated in Illinois at the time and location
1450	1450	12 the energy is converted to alternating current by the high
1451	1451	13 voltage direct current converter station if the high
1452	1452	14 voltage direct current transmission line: (i) after the
1453	1453	15 effective date of this amendatory Act of the 102nd General
1454	1454	16 Assembly, was constructed with a project labor agreement;
1455	1455	17 (ii) is capable of transmitting electricity at 525kv;
1456	1456	18 (iii) has an Illinois converter station located and
1457	1457	19 interconnected in the region of the PJM Interconnection,
1458	1458	20 LLC; (iv) does not operate as a public utility; and (v) if
1459	1459	21 the high voltage direct current transmission line was
1460	1460	22 energized after June 1, 2023. To ensure that the public
1461	1461	23 interest criteria are applied to the procurement and given
1462	1462	24 full effect, the Agency's long-term procurement plan shall
1463	1463	25 describe in detail how each public interest factor shall
1464	1464	26 be considered and weighted for facilities located in
1465	1465
1466	1466
1467	1467
1468	1468
1469	1469
1470	1470	SB2289 - 40 - LRB104 06374 AAS 16410 b
1471	1471
1472	1472
1473	1473	SB2289- 41 -LRB104 06374 AAS 16410 b SB2289 - 41 - LRB104 06374 AAS 16410 b
1474	1474	SB2289 - 41 - LRB104 06374 AAS 16410 b
1475	1475	1 states adjacent to Illinois.
1476	1476	2 (J) In order to promote the competitive development of
1477	1477	3 renewable energy resources in furtherance of the State's
1478	1478	4 interest in the health, safety, and welfare of its
1479	1479	5 residents, renewable energy credits shall not be eligible
1480	1480	6 to be counted toward the renewable energy requirements of
1481	1481	7 this subsection (c) if they are sourced from a generating
1482	1482	8 unit whose costs were being recovered through rates
1483	1483	9 regulated by this State or any other state or states on or
1484	1484	10 after January 1, 2017. Each contract executed to purchase
1485	1485	11 renewable energy credits under this subsection (c) shall
1486	1486	12 provide for the contract's termination if the costs of the
1487	1487	13 generating unit supplying the renewable energy credits
1488	1488	14 subsequently begin to be recovered through rates regulated
1489	1489	15 by this State or any other state or states; and each
1490	1490	16 contract shall further provide that, in that event, the
1491	1491	17 supplier of the credits must return 110% of all payments
1492	1492	18 received under the contract. Amounts returned under the
1493	1493	19 requirements of this subparagraph (J) shall be retained by
1494	1494	20 the utility and all of these amounts shall be used for the
1495	1495	21 procurement of additional renewable energy credits from
1496	1496	22 new wind or new photovoltaic resources as defined in this
1497	1497	23 subsection (c). The long-term plan shall provide that
1498	1498	24 these renewable energy credits shall be procured in the
1499	1499	25 next procurement event.
1500	1500	26 Notwithstanding the limitations of this subparagraph
1501	1501
1502	1502
1503	1503
1504	1504
1505	1505
1506	1506	SB2289 - 41 - LRB104 06374 AAS 16410 b
1507	1507
1508	1508
1509	1509	SB2289- 42 -LRB104 06374 AAS 16410 b SB2289 - 42 - LRB104 06374 AAS 16410 b
1510	1510	SB2289 - 42 - LRB104 06374 AAS 16410 b
1511	1511	1 (J), renewable energy credits sourced from generating
1512	1512	2 units that are constructed, purchased, owned, or leased by
1513	1513	3 an electric utility as part of an approved project,
1514	1514	4 program, or pilot under Section 1-56 of this Act shall be
1515	1515	5 eligible to be counted toward the renewable energy
1516	1516	6 requirements of this subsection (c), regardless of how the
1517	1517	7 costs of these units are recovered. As long as a
1518	1518	8 generating unit or an identifiable portion of a generating
1519	1519	9 unit has not had and does not have its costs recovered
1520	1520	10 through rates regulated by this State or any other state,
1521	1521	11 HVDC renewable energy credits associated with that
1522	1522	12 generating unit or identifiable portion thereof shall be
1523	1523	13 eligible to be counted toward the renewable energy
1524	1524	14 requirements of this subsection (c).
1525	1525	15 (K) The long-term renewable resources procurement plan
1526	1526	16 developed by the Agency in accordance with subparagraph
1527	1527	17 (A) of this paragraph (1) shall include an Adjustable
1528	1528	18 Block program for the procurement of renewable energy
1529	1529	19 credits from new photovoltaic projects that are
1530	1530	20 distributed renewable energy generation devices or new
1531	1531	21 photovoltaic community renewable generation projects. The
1532	1532	22 Adjustable Block program shall be generally designed to
1533	1533	23 provide for the steady, predictable, and sustainable
1534	1534	24 growth of new solar photovoltaic development in Illinois.
1535	1535	25 To this end, the Adjustable Block program shall provide a
1536	1536	26 transparent annual schedule of prices and quantities to
1537	1537
1538	1538
1539	1539
1540	1540
1541	1541
1542	1542	SB2289 - 42 - LRB104 06374 AAS 16410 b
1543	1543
1544	1544
1545	1545	SB2289- 43 -LRB104 06374 AAS 16410 b SB2289 - 43 - LRB104 06374 AAS 16410 b
1546	1546	SB2289 - 43 - LRB104 06374 AAS 16410 b
1547	1547	1 enable the photovoltaic market to scale up and for
1548	1548	2 renewable energy credit prices to adjust at a predictable
1549	1549	3 rate over time. The prices set by the Adjustable Block
1550	1550	4 program can be reflected as a set value or as the product
1551	1551	5 of a formula.
1552	1552	6 The Adjustable Block program shall include for each
1553	1553	7 category of eligible projects for each delivery year: a
1554	1554	8 single block of nameplate capacity, a price for renewable
1555	1555	9 energy credits within that block, and the terms and
1556	1556	10 conditions for securing a spot on a waitlist once the
1557	1557	11 block is fully committed or reserved. Except as outlined
1558	1558	12 below, the waitlist of projects in a given year will carry
1559	1559	13 over to apply to the subsequent year when another block is
1560	1560	14 opened. Only projects energized on or after June 1, 2017
1561	1561	15 shall be eligible for the Adjustable Block program. For
1562	1562	16 each category for each delivery year the Agency shall
1563	1563	17 determine the amount of generation capacity in each block,
1564	1564	18 and the purchase price for each block, provided that the
1565	1565	19 purchase price provided and the total amount of generation
1566	1566	20 in all blocks for all categories shall be sufficient to
1567	1567	21 meet the goals in this subsection (c). The Agency shall
1568	1568	22 strive to issue a single block sized to provide for
1569	1569	23 stability and market growth. The Agency shall establish
1570	1570	24 program eligibility requirements that ensure that projects
1571	1571	25 that enter the program are sufficiently mature to indicate
1572	1572	26 a demonstrable path to completion. The Agency may
1573	1573
1574	1574
1575	1575
1576	1576
1577	1577
1578	1578	SB2289 - 43 - LRB104 06374 AAS 16410 b
1579	1579
1580	1580
1581	1581	SB2289- 44 -LRB104 06374 AAS 16410 b SB2289 - 44 - LRB104 06374 AAS 16410 b
1582	1582	SB2289 - 44 - LRB104 06374 AAS 16410 b
1583	1583	1 periodically review its prior decisions establishing the
1584	1584	2 amount of generation capacity in each block, and the
1585	1585	3 purchase price for each block, and may propose, on an
1586	1586	4 expedited basis, changes to these previously set values,
1587	1587	5 including but not limited to redistributing these amounts
1588	1588	6 and the available funds as necessary and appropriate,
1589	1589	7 subject to Commission approval as part of the periodic
1590	1590	8 plan revision process described in Section 16-111.5 of the
1591	1591	9 Public Utilities Act. The Agency may define different
1592	1592	10 block sizes, purchase prices, or other distinct terms and
1593	1593	11 conditions for projects located in different utility
1594	1594	12 service territories if the Agency deems it necessary to
1595	1595	13 meet the goals in this subsection (c).
1596	1596	14 The Adjustable Block program shall include the
1597	1597	15 following categories in at least the following amounts:
1598	1598	16 (i) At least 20% from distributed renewable energy
1599	1599	17 generation devices with a nameplate capacity of no
1600	1600	18 more than 25 kilowatts.
1601	1601	19 (ii) At least 20% from distributed renewable
1602	1602	20 energy generation devices with a nameplate capacity of
1603	1603	21 more than 25 kilowatts and no more than 5,000
1604	1604	22 kilowatts. The Agency may create sub-categories within
1605	1605	23 this category to account for the differences between
1606	1606	24 projects for small commercial customers, large
1607	1607	25 commercial customers, and public or non-profit
1608	1608	26 customers.
1609	1609
1610	1610
1611	1611
1612	1612
1613	1613
1614	1614	SB2289 - 44 - LRB104 06374 AAS 16410 b
1615	1615
1616	1616
1617	1617	SB2289- 45 -LRB104 06374 AAS 16410 b SB2289 - 45 - LRB104 06374 AAS 16410 b
1618	1618	SB2289 - 45 - LRB104 06374 AAS 16410 b
1619	1619	1 (iii) At least 30% from photovoltaic community
1620	1620	2 renewable generation projects. Capacity for this
1621	1621	3 category for the first 2 delivery years after the
1622	1622	4 effective date of this amendatory Act of the 102nd
1623	1623	5 General Assembly shall be allocated to waitlist
1624	1624	6 projects as provided in paragraph (3) of item (iv) of
1625	1625	7 subparagraph (G). Starting in the third delivery year
1626	1626	8 after the effective date of this amendatory Act of the
1627	1627	9 102nd General Assembly or earlier if the Agency
1628	1628	10 determines there is additional capacity needed for to
1629	1629	11 meet previous delivery year requirements, the
1630	1630	12 following shall apply:
1631	1631	13 (1) the Agency shall select projects on a
1632	1632	14 first-come, first-serve basis, however the Agency
1633	1633	15 may suggest additional methods to prioritize
1634	1634	16 projects that are submitted at the same time;
1635	1635	17 (2) projects shall have subscriptions of 25 kW
1636	1636	18 or less for at least 50% of the facility's
1637	1637	19 nameplate capacity and the Agency shall price the
1638	1638	20 renewable energy credits with that as a factor;
1639	1639	21 (3) projects shall not be colocated with one
1640	1640	22 or more other community renewable generation
1641	1641	23 projects, as defined in the Agency's first revised
1642	1642	24 long-term renewable resources procurement plan
1643	1643	25 approved by the Commission on February 18, 2020,
1644	1644	26 such that the aggregate nameplate capacity exceeds
1645	1645
1646	1646
1647	1647
1648	1648
1649	1649
1650	1650	SB2289 - 45 - LRB104 06374 AAS 16410 b
1651	1651
1652	1652
1653	1653	SB2289- 46 -LRB104 06374 AAS 16410 b SB2289 - 46 - LRB104 06374 AAS 16410 b
1654	1654	SB2289 - 46 - LRB104 06374 AAS 16410 b
1655	1655	1 5,000 kilowatts; and
1656	1656	2 (4) projects greater than 2 MW may not apply
1657	1657	3 until after the approval of the Agency's revised
1658	1658	4 Long-Term Renewable Resources Procurement Plan
1659	1659	5 after the effective date of this amendatory Act of
1660	1660	6 the 102nd General Assembly.
1661	1661	7 (iv) At least 15% from distributed renewable
1662	1662	8 generation devices or photovoltaic community renewable
1663	1663	9 generation projects installed on public school land.
1664	1664	10 The Agency may create subcategories within this
1665	1665	11 category to account for the differences between
1666	1666	12 project size or location. Projects located within
1667	1667	13 environmental justice communities or within
1668	1668	14 Organizational Units that fall within Tier 1 or Tier 2
1669	1669	15 shall be given priority. Each of the Agency's periodic
1670	1670	16 updates to its long-term renewable resources
1671	1671	17 procurement plan to incorporate the procurement
1672	1672	18 described in this subparagraph (iv) shall also include
1673	1673	19 the proposed quantities or blocks, pricing, and
1674	1674	20 contract terms applicable to the procurement as
1675	1675	21 indicated herein. In each such update and procurement,
1676	1676	22 the Agency shall set the renewable energy credit price
1677	1677	23 and establish payment terms for the renewable energy
1678	1678	24 credits procured pursuant to this subparagraph (iv)
1679	1679	25 that make it feasible and affordable for public
1680	1680	26 schools to install photovoltaic distributed renewable
1681	1681
1682	1682
1683	1683
1684	1684
1685	1685
1686	1686	SB2289 - 46 - LRB104 06374 AAS 16410 b
1687	1687
1688	1688
1689	1689	SB2289- 47 -LRB104 06374 AAS 16410 b SB2289 - 47 - LRB104 06374 AAS 16410 b
1690	1690	SB2289 - 47 - LRB104 06374 AAS 16410 b
1691	1691	1 energy devices on their premises, including, but not
1692	1692	2 limited to, those public schools subject to the
1693	1693	3 prioritization provisions of this subparagraph. For
1694	1694	4 the purposes of this item (iv):
1695	1695	5 "Environmental Justice Community" shall have the
1696	1696	6 same meaning set forth in the Agency's long-term
1697	1697	7 renewable resources procurement plan;
1698	1698	8 "Organization Unit", "Tier 1" and "Tier 2" shall
1699	1699	9 have the meanings set for in Section 18-8.15 of the
1700	1700	10 School Code;
1701	1701	11 "Public schools" shall have the meaning set forth
1702	1702	12 in Section 1-3 of the School Code and includes public
1703	1703	13 institutions of higher education, as defined in the
1704	1704	14 Board of Higher Education Act.
1705	1705	15 (v) At least 5% from community-driven community
1706	1706	16 solar projects intended to provide more direct and
1707	1707	17 tangible connection and benefits to the communities
1708	1708	18 which they serve or in which they operate and,
1709	1709	19 additionally, to increase the variety of community
1710	1710	20 solar locations, models, and options in Illinois. As
1711	1711	21 part of its long-term renewable resources procurement
1712	1712	22 plan, the Agency shall develop selection criteria for
1713	1713	23 projects participating in this category. Nothing in
1714	1714	24 this Section shall preclude the Agency from creating a
1715	1715	25 selection process that maximizes community ownership
1716	1716	26 and community benefits in selecting projects to
1717	1717
1718	1718
1719	1719
1720	1720
1721	1721
1722	1722	SB2289 - 47 - LRB104 06374 AAS 16410 b
1723	1723
1724	1724
1725	1725	SB2289- 48 -LRB104 06374 AAS 16410 b SB2289 - 48 - LRB104 06374 AAS 16410 b
1726	1726	SB2289 - 48 - LRB104 06374 AAS 16410 b
1727	1727	1 receive renewable energy credits. Selection criteria
1728	1728	2 shall include:
1729	1729	3 (1) community ownership or community
1730	1730	4 wealth-building;
1731	1731	5 (2) additional direct and indirect community
1732	1732	6 benefit, beyond project participation as a
1733	1733	7 subscriber, including, but not limited to,
1734	1734	8 economic, environmental, social, cultural, and
1735	1735	9 physical benefits;
1736	1736	10 (3) meaningful involvement in project
1737	1737	11 organization and development by community members
1738	1738	12 or nonprofit organizations or public entities
1739	1739	13 located in or serving the community;
1740	1740	14 (4) engagement in project operations and
1741	1741	15 management by nonprofit organizations, public
1742	1742	16 entities, or community members; and
1743	1743	17 (5) whether a project is developed in response
1744	1744	18 to a site-specific RFP developed by community
1745	1745	19 members or a nonprofit organization or public
1746	1746	20 entity located in or serving the community.
1747	1747	21 Selection criteria may also prioritize projects
1748	1748	22 that:
1749	1749	23 (1) are developed in collaboration with or to
1750	1750	24 provide complementary opportunities for the Clean
1751	1751	25 Jobs Workforce Network Program, the Illinois
1752	1752	26 Climate Works Preapprenticeship Program, the
1753	1753
1754	1754
1755	1755
1756	1756
1757	1757
1758	1758	SB2289 - 48 - LRB104 06374 AAS 16410 b
1759	1759
1760	1760
1761	1761	SB2289- 49 -LRB104 06374 AAS 16410 b SB2289 - 49 - LRB104 06374 AAS 16410 b
1762	1762	SB2289 - 49 - LRB104 06374 AAS 16410 b
1763	1763	1 Returning Residents Clean Jobs Training Program,
1764	1764	2 the Clean Energy Contractor Incubator Program, or
1765	1765	3 the Clean Energy Primes Contractor Accelerator
1766	1766	4 Program;
1767	1767	5 (2) increase the diversity of locations of
1768	1768	6 community solar projects in Illinois, including by
1769	1769	7 locating in urban areas and population centers;
1770	1770	8 (3) are located in Equity Investment Eligible
1771	1771	9 Communities;
1772	1772	10 (4) are not greenfield projects;
1773	1773	11 (5) serve only local subscribers;
1774	1774	12 (6) have a nameplate capacity that does not
1775	1775	13 exceed 500 kW;
1776	1776	14 (7) are developed by an equity eligible
1777	1777	15 contractor; or
1778	1778	16 (8) otherwise meaningfully advance the goals
1779	1779	17 of providing more direct and tangible connection
1780	1780	18 and benefits to the communities which they serve
1781	1781	19 or in which they operate and increasing the
1782	1782	20 variety of community solar locations, models, and
1783	1783	21 options in Illinois.
1784	1784	22 For the purposes of this item (v):
1785	1785	23 "Community" means a social unit in which people
1786	1786	24 come together regularly to effect change; a social
1787	1787	25 unit in which participants are marked by a cooperative
1788	1788	26 spirit, a common purpose, or shared interests or
1789	1789
1790	1790
1791	1791
1792	1792
1793	1793
1794	1794	SB2289 - 49 - LRB104 06374 AAS 16410 b
1795	1795
1796	1796
1797	1797	SB2289- 50 -LRB104 06374 AAS 16410 b SB2289 - 50 - LRB104 06374 AAS 16410 b
1798	1798	SB2289 - 50 - LRB104 06374 AAS 16410 b
1799	1799	1 characteristics; or a space understood by its
1800	1800	2 residents to be delineated through geographic
1801	1801	3 boundaries or landmarks.
1802	1802	4 "Community benefit" means a range of services and
1803	1803	5 activities that provide affirmative, economic,
1804	1804	6 environmental, social, cultural, or physical value to
1805	1805	7 a community; or a mechanism that enables economic
1806	1806	8 development, high-quality employment, and education
1807	1807	9 opportunities for local workers and residents, or
1808	1808	10 formal monitoring and oversight structures such that
1809	1809	11 community members may ensure that those services and
1810	1810	12 activities respond to local knowledge and needs.
1811	1811	13 "Community ownership" means an arrangement in
1812	1812	14 which an electric generating facility is, or over time
1813	1813	15 will be, in significant part, owned collectively by
1814	1814	16 members of the community to which an electric
1815	1815	17 generating facility provides benefits; members of that
1816	1816	18 community participate in decisions regarding the
1817	1817	19 governance, operation, maintenance, and upgrades of
1818	1818	20 and to that facility; and members of that community
1819	1819	21 benefit from regular use of that facility.
1820	1820	22 Terms and guidance within these criteria that are
1821	1821	23 not defined in this item (v) shall be defined by the
1822	1822	24 Agency, with stakeholder input, during the development
1823	1823	25 of the Agency's long-term renewable resources
1824	1824	26 procurement plan. The Agency shall develop regular
1825	1825
1826	1826
1827	1827
1828	1828
1829	1829
1830	1830	SB2289 - 50 - LRB104 06374 AAS 16410 b
1831	1831
1832	1832
1833	1833	SB2289- 51 -LRB104 06374 AAS 16410 b SB2289 - 51 - LRB104 06374 AAS 16410 b
1834	1834	SB2289 - 51 - LRB104 06374 AAS 16410 b
1835	1835	1 opportunities for projects to submit applications for
1836	1836	2 projects under this category, and develop selection
1837	1837	3 criteria that gives preference to projects that better
1838	1838	4 meet individual criteria as well as projects that
1839	1839	5 address a higher number of criteria.
1840	1840	6 (vi) At least 10% from distributed renewable
1841	1841	7 energy generation devices, which includes distributed
1842	1842	8 renewable energy devices with a nameplate capacity
1843	1843	9 under 5,000 kilowatts or photovoltaic community
1844	1844	10 renewable generation projects, from applicants that
1845	1845	11 are equity eligible contractors. The Agency may create
1846	1846	12 subcategories within this category to account for the
1847	1847	13 differences between project size and type. The Agency
1848	1848	14 shall propose to increase the percentage in this item
1849	1849	15 (vi) over time to 40% based on factors, including, but
1850	1850	16 not limited to, the number of equity eligible
1851	1851	17 contractors and capacity used in this item (vi) in
1852	1852	18 previous delivery years.
1853	1853	19 The Agency shall propose a payment structure for
1854	1854	20 contracts executed pursuant to this paragraph under
1855	1855	21 which, upon a demonstration of qualification or need,
1856	1856	22 applicant firms are advanced capital disbursed after
1857	1857	23 contract execution but before the contracted project's
1858	1858	24 energization. The amount or percentage of capital
1859	1859	25 advanced prior to project energization shall be
1860	1860	26 sufficient to both cover any increase in development
1861	1861
1862	1862
1863	1863
1864	1864
1865	1865
1866	1866	SB2289 - 51 - LRB104 06374 AAS 16410 b
1867	1867
1868	1868
1869	1869	SB2289- 52 -LRB104 06374 AAS 16410 b SB2289 - 52 - LRB104 06374 AAS 16410 b
1870	1870	SB2289 - 52 - LRB104 06374 AAS 16410 b
1871	1871	1 costs resulting from prevailing wage requirements or
1872	1872	2 project-labor agreements, and designed to overcome
1873	1873	3 barriers in access to capital faced by equity eligible
1874	1874	4 contractors. The amount or percentage of advanced
1875	1875	5 capital may vary by subcategory within this category
1876	1876	6 and by an applicant's demonstration of need, with such
1877	1877	7 levels to be established through the Long-Term
1878	1878	8 Renewable Resources Procurement Plan authorized under
1879	1879	9 subparagraph (A) of paragraph (1) of subsection (c) of
1880	1880	10 this Section.
1881	1881	11 Contracts developed featuring capital advanced
1882	1882	12 prior to a project's energization shall feature
1883	1883	13 provisions to ensure both the successful development
1884	1884	14 of applicant projects and the delivery of the
1885	1885	15 renewable energy credits for the full term of the
1886	1886	16 contract, including ongoing collateral requirements
1887	1887	17 and other provisions deemed necessary by the Agency,
1888	1888	18 and may include energization timelines longer than for
1889	1889	19 comparable project types. The percentage or amount of
1890	1890	20 capital advanced prior to project energization shall
1891	1891	21 not operate to increase the overall contract value,
1892	1892	22 however contracts executed under this subparagraph may
1893	1893	23 feature renewable energy credit prices higher than
1894	1894	24 those offered to similar projects participating in
1895	1895	25 other categories. Capital advanced prior to
1896	1896	26 energization shall serve to reduce the ratable
1897	1897
1898	1898
1899	1899
1900	1900
1901	1901
1902	1902	SB2289 - 52 - LRB104 06374 AAS 16410 b
1903	1903
1904	1904
1905	1905	SB2289- 53 -LRB104 06374 AAS 16410 b SB2289 - 53 - LRB104 06374 AAS 16410 b
1906	1906	SB2289 - 53 - LRB104 06374 AAS 16410 b
1907	1907	1 payments made after energization under items (ii) and
1908	1908	2 (iii) of subparagraph (L) or payments made for each
1909	1909	3 renewable energy credit delivery under item (iv) of
1910	1910	4 subparagraph (L).
1911	1911	5 (vii) The remaining capacity shall be allocated by
1912	1912	6 the Agency in order to respond to market demand. The
1913	1913	7 Agency shall allocate any discretionary capacity prior
1914	1914	8 to the beginning of each delivery year.
1915	1915	9 To the extent there is uncontracted capacity from any
1916	1916	10 block in any of categories (i) through (vi) at the end of a
1917	1917	11 delivery year, the Agency shall redistribute that capacity
1918	1918	12 to one or more other categories giving priority to
1919	1919	13 categories with projects on a waitlist. The redistributed
1920	1920	14 capacity shall be added to the annual capacity in the
1921	1921	15 subsequent delivery year, and the price for renewable
1922	1922	16 energy credits shall be the price for the new delivery
1923	1923	17 year. Redistributed capacity shall not be considered
1924	1924	18 redistributed when determining whether the goals in this
1925	1925	19 subsection (K) have been met.
1926	1926	20 Notwithstanding anything to the contrary, as the
1927	1927	21 Agency increases the capacity in item (vi) to 40% over
1928	1928	22 time, the Agency may reduce the capacity of items (i)
1929	1929	23 through (v) proportionate to the capacity of the
1930	1930	24 categories of projects in item (vi), to achieve a balance
1931	1931	25 of project types.
1932	1932	26 The Adjustable Block program shall be designed to
1933	1933
1934	1934
1935	1935
1936	1936
1937	1937
1938	1938	SB2289 - 53 - LRB104 06374 AAS 16410 b
1939	1939
1940	1940
1941	1941	SB2289- 54 -LRB104 06374 AAS 16410 b SB2289 - 54 - LRB104 06374 AAS 16410 b
1942	1942	SB2289 - 54 - LRB104 06374 AAS 16410 b
1943	1943	1 ensure that renewable energy credits are procured from
1944	1944	2 projects in diverse locations and are not concentrated in
1945	1945	3 a few regional areas.
1946	1946	4 (L) Notwithstanding provisions for advancing capital
1947	1947	5 prior to project energization found in item (vi) of
1948	1948	6 subparagraph (K), the procurement of photovoltaic
1949	1949	7 renewable energy credits under items (i) through (vi) of
1950	1950	8 subparagraph (K) of this paragraph (1) shall otherwise be
1951	1951	9 subject to the following contract and payment terms:
1952	1952	10 (i) (Blank).
1953	1953	11 (ii) For those renewable energy credits that
1954	1954	12 qualify and are procured under item (i) of
1955	1955	13 subparagraph (K) of this paragraph (1), and any
1956	1956	14 similar category projects that are procured under item
1957	1957	15 (vi) of subparagraph (K) of this paragraph (1) that
1958	1958	16 qualify and are procured under item (vi), the contract
1959	1959	17 length shall be 15 years. The renewable energy credit
1960	1960	18 delivery contract value shall be paid in full, based
1961	1961	19 on the estimated generation during the first 15 years
1962	1962	20 of operation, by the contracting utilities at the time
1963	1963	21 that the facility producing the renewable energy
1964	1964	22 credits is interconnected at the distribution system
1965	1965	23 level of the utility and verified as energized and
1966	1966	24 compliant by the Program Administrator. The electric
1967	1967	25 utility shall receive and retire all renewable energy
1968	1968	26 credits generated by the project for the first 15
1969	1969
1970	1970
1971	1971
1972	1972
1973	1973
1974	1974	SB2289 - 54 - LRB104 06374 AAS 16410 b
1975	1975
1976	1976
1977	1977	SB2289- 55 -LRB104 06374 AAS 16410 b SB2289 - 55 - LRB104 06374 AAS 16410 b
1978	1978	SB2289 - 55 - LRB104 06374 AAS 16410 b
1979	1979	1 years of operation. Renewable energy credits generated
1980	1980	2 by the project thereafter shall not be transferred
1981	1981	3 under the renewable energy credit delivery contract
1982	1982	4 with the counterparty electric utility.
1983	1983	5 (iii) For those renewable energy credits that
1984	1984	6 qualify and are procured under item (ii) and (v) of
1985	1985	7 subparagraph (K) of this paragraph (1) and any like
1986	1986	8 projects similar category that qualify and are
1987	1987	9 procured under item (vi), the contract length shall be
1988	1988	10 15 years. 15% of the renewable energy credit delivery
1989	1989	11 contract value, based on the estimated generation
1990	1990	12 during the first 15 years of operation, shall be paid
1991	1991	13 by the contracting utilities at the time that the
1992	1992	14 facility producing the renewable energy credits is
1993	1993	15 interconnected at the distribution system level of the
1994	1994	16 utility and verified as energized and compliant by the
1995	1995	17 Program Administrator. The remaining portion shall be
1996	1996	18 paid ratably over the subsequent 6-year period. The
1997	1997	19 electric utility shall receive and retire all
1998	1998	20 renewable energy credits generated by the project for
1999	1999	21 the first 15 years of operation. Renewable energy
2000	2000	22 credits generated by the project thereafter shall not
2001	2001	23 be transferred under the renewable energy credit
2002	2002	24 delivery contract with the counterparty electric
2003	2003	25 utility.
2004	2004	26 (iv) For those renewable energy credits that
2005	2005
2006	2006
2007	2007
2008	2008
2009	2009
2010	2010	SB2289 - 55 - LRB104 06374 AAS 16410 b
2011	2011
2012	2012
2013	2013	SB2289- 56 -LRB104 06374 AAS 16410 b SB2289 - 56 - LRB104 06374 AAS 16410 b
2014	2014	SB2289 - 56 - LRB104 06374 AAS 16410 b
2015	2015	1 qualify and are procured under items (iii) and (iv) of
2016	2016	2 subparagraph (K) of this paragraph (1), and any like
2017	2017	3 projects that qualify and are procured under item
2018	2018	4 (vi), the renewable energy credit delivery contract
2019	2019	5 length shall be 20 years and shall be paid over the
2020	2020	6 delivery term, not to exceed during each delivery year
2021	2021	7 the contract price multiplied by the estimated annual
2022	2022	8 renewable energy credit generation amount. If
2023	2023	9 generation of renewable energy credits during a
2024	2024	10 delivery year exceeds the estimated annual generation
2025	2025	11 amount, the excess renewable energy credits shall be
2026	2026	12 carried forward to future delivery years and shall not
2027	2027	13 expire during the delivery term. If generation of
2028	2028	14 renewable energy credits during a delivery year,
2029	2029	15 including carried forward excess renewable energy
2030	2030	16 credits, if any, is less than the estimated annual
2031	2031	17 generation amount, payments during such delivery year
2032	2032	18 will not exceed the quantity generated plus the
2033	2033	19 quantity carried forward multiplied by the contract
2034	2034	20 price. The electric utility shall receive all
2035	2035	21 renewable energy credits generated by the project
2036	2036	22 during the first 20 years of operation and retire all
2037	2037	23 renewable energy credits paid for under this item (iv)
2038	2038	24 and return at the end of the delivery term all
2039	2039	25 renewable energy credits that were not paid for.
2040	2040	26 Renewable energy credits generated by the project
2041	2041
2042	2042
2043	2043
2044	2044
2045	2045
2046	2046	SB2289 - 56 - LRB104 06374 AAS 16410 b
2047	2047
2048	2048
2049	2049	SB2289- 57 -LRB104 06374 AAS 16410 b SB2289 - 57 - LRB104 06374 AAS 16410 b
2050	2050	SB2289 - 57 - LRB104 06374 AAS 16410 b
2051	2051	1 thereafter shall not be transferred under the
2052	2052	2 renewable energy credit delivery contract with the
2053	2053	3 counterparty electric utility. Notwithstanding the
2054	2054	4 preceding, for those projects participating under item
2055	2055	5 (iii) of subparagraph (K), the contract price for a
2056	2056	6 delivery year shall be based on subscription levels as
2057	2057	7 measured on the higher of the first business day of the
2058	2058	8 delivery year or the first business day 6 months after
2059	2059	9 the first business day of the delivery year.
2060	2060	10 Subscription of 90% of nameplate capacity or greater
2061	2061	11 shall be deemed to be fully subscribed for the
2062	2062	12 purposes of this item (iv). For projects receiving a
2063	2063	13 20-year delivery contract, REC prices shall be
2064	2064	14 adjusted downward for consistency with the incentive
2065	2065	15 levels previously determined to be necessary to
2066	2066	16 support projects under 15-year delivery contracts,
2067	2067	17 taking into consideration any additional new
2068	2068	18 requirements placed on the projects, including, but
2069	2069	19 not limited to, labor standards.
2070	2070	20 (v) Each contract shall include provisions to
2071	2071	21 ensure the delivery of the estimated quantity of
2072	2072	22 renewable energy credits and ongoing collateral
2073	2073	23 requirements and other provisions deemed appropriate
2074	2074	24 by the Agency.
2075	2075	25 (vi) The utility shall be the counterparty to the
2076	2076	26 contracts executed under this subparagraph (L) that
2077	2077
2078	2078
2079	2079
2080	2080
2081	2081
2082	2082	SB2289 - 57 - LRB104 06374 AAS 16410 b
2083	2083
2084	2084
2085	2085	SB2289- 58 -LRB104 06374 AAS 16410 b SB2289 - 58 - LRB104 06374 AAS 16410 b
2086	2086	SB2289 - 58 - LRB104 06374 AAS 16410 b
2087	2087	1 are approved by the Commission under the process
2088	2088	2 described in Section 16-111.5 of the Public Utilities
2089	2089	3 Act. No contract shall be executed for an amount that
2090	2090	4 is less than one renewable energy credit per year.
2091	2091	5 (vii) If, at any time, approved applications for
2092	2092	6 the Adjustable Block program exceed funds collected by
2093	2093	7 the electric utility or would cause the Agency to
2094	2094	8 exceed the limitation described in subparagraph (E) of
2095	2095	9 this paragraph (1) on the amount of renewable energy
2096	2096	10 resources that may be procured, then the Agency may
2097	2097	11 consider future uncommitted funds to be reserved for
2098	2098	12 these contracts on a first-come, first-served basis.
2099	2099	13 (viii) Nothing in this Section shall require the
2100	2100	14 utility to advance any payment or pay any amounts that
2101	2101	15 exceed the actual amount of revenues anticipated to be
2102	2102	16 collected by the utility under paragraph (6) of this
2103	2103	17 subsection (c) and subsection (k) of Section 16-108 of
2104	2104	18 the Public Utilities Act inclusive of eligible funds
2105	2105	19 collected in prior years and alternative compliance
2106	2106	20 payments for use by the utility, and contracts
2107	2107	21 executed under this Section shall expressly
2108	2108	22 incorporate this limitation.
2109	2109	23 (ix) Notwithstanding other requirements of this
2110	2110	24 subparagraph (L), no modification shall be required to
2111	2111	25 Adjustable Block program contracts if they were
2112	2112	26 already executed prior to the establishment, approval,
2113	2113
2114	2114
2115	2115
2116	2116
2117	2117
2118	2118	SB2289 - 58 - LRB104 06374 AAS 16410 b
2119	2119
2120	2120
2121	2121	SB2289- 59 -LRB104 06374 AAS 16410 b SB2289 - 59 - LRB104 06374 AAS 16410 b
2122	2122	SB2289 - 59 - LRB104 06374 AAS 16410 b
2123	2123	1 and implementation of new contract forms as a result
2124	2124	2 of this amendatory Act of the 102nd General Assembly.
2125	2125	3 (x) Contracts may be assignable, but only to
2126	2126	4 entities first deemed by the Agency to have met
2127	2127	5 program terms and requirements applicable to direct
2128	2128	6 program participation. In developing contracts for the
2129	2129	7 delivery of renewable energy credits, the Agency shall
2130	2130	8 be permitted to establish fees applicable to each
2131	2131	9 contract assignment.
2132	2132	10 (M) The Agency shall be authorized to retain one or
2133	2133	11 more experts or expert consulting firms to develop,
2134	2134	12 administer, implement, operate, and evaluate the
2135	2135	13 Adjustable Block program described in subparagraph (K) of
2136	2136	14 this paragraph (1), and the Agency shall retain the
2137	2137	15 consultant or consultants in the same manner, to the
2138	2138	16 extent practicable, as the Agency retains others to
2139	2139	17 administer provisions of this Act, including, but not
2140	2140	18 limited to, the procurement administrator. The selection
2141	2141	19 of experts and expert consulting firms and the procurement
2142	2142	20 process described in this subparagraph (M) are exempt from
2143	2143	21 the requirements of Section 20-10 of the Illinois
2144	2144	22 Procurement Code, under Section 20-10 of that Code. The
2145	2145	23 Agency shall strive to minimize administrative expenses in
2146	2146	24 the implementation of the Adjustable Block program.
2147	2147	25 The Program Administrator may charge application fees
2148	2148	26 to participating firms to cover the cost of program
2149	2149
2150	2150
2151	2151
2152	2152
2153	2153
2154	2154	SB2289 - 59 - LRB104 06374 AAS 16410 b
2155	2155
2156	2156
2157	2157	SB2289- 60 -LRB104 06374 AAS 16410 b SB2289 - 60 - LRB104 06374 AAS 16410 b
2158	2158	SB2289 - 60 - LRB104 06374 AAS 16410 b
2159	2159	1 administration. Any application fee amounts shall
2160	2160	2 initially be determined through the long-term renewable
2161	2161	3 resources procurement plan, and modifications to any
2162	2162	4 application fee that deviate more than 25% from the
2163	2163	5 Commission's approved value must be approved by the
2164	2164	6 Commission as a long-term plan revision under Section
2165	2165	7 16-111.5 of the Public Utilities Act. The Agency shall
2166	2166	8 consider stakeholder feedback when making adjustments to
2167	2167	9 application fees and shall notify stakeholders in advance
2168	2168	10 of any planned changes.
2169	2169	11 In addition to covering the costs of program
2170	2170	12 administration, the Agency, in conjunction with its
2171	2171	13 Program Administrator, may also use the proceeds of such
2172	2172	14 fees charged to participating firms to support public
2173	2173	15 education and ongoing regional and national coordination
2174	2174	16 with nonprofit organizations, public bodies, and others
2175	2175	17 engaged in the implementation of renewable energy
2176	2176	18 incentive programs or similar initiatives. This work may
2177	2177	19 include developing papers and reports, hosting regional
2178	2178	20 and national conferences, and other work deemed necessary
2179	2179	21 by the Agency to position the State of Illinois as a
2180	2180	22 national leader in renewable energy incentive program
2181	2181	23 development and administration.
2182	2182	24 The Agency and its consultant or consultants shall
2183	2183	25 monitor block activity, share program activity with
2184	2184	26 stakeholders and conduct quarterly meetings to discuss
2185	2185
2186	2186
2187	2187
2188	2188
2189	2189
2190	2190	SB2289 - 60 - LRB104 06374 AAS 16410 b
2191	2191
2192	2192
2193	2193	SB2289- 61 -LRB104 06374 AAS 16410 b SB2289 - 61 - LRB104 06374 AAS 16410 b
2194	2194	SB2289 - 61 - LRB104 06374 AAS 16410 b
2195	2195	1 program activity and market conditions. If necessary, the
2196	2196	2 Agency may make prospective administrative adjustments to
2197	2197	3 the Adjustable Block program design, such as making
2198	2198	4 adjustments to purchase prices as necessary to achieve the
2199	2199	5 goals of this subsection (c). Program modifications to any
2200	2200	6 block price that do not deviate from the Commission's
2201	2201	7 approved value by more than 10% shall take effect
2202	2202	8 immediately and are not subject to Commission review and
2203	2203	9 approval. Program modifications to any block price that
2204	2204	10 deviate more than 10% from the Commission's approved value
2205	2205	11 must be approved by the Commission as a long-term plan
2206	2206	12 amendment under Section 16-111.5 of the Public Utilities
2207	2207	13 Act. The Agency shall consider stakeholder feedback when
2208	2208	14 making adjustments to the Adjustable Block design and
2209	2209	15 shall notify stakeholders in advance of any planned
2210	2210	16 changes.
2211	2211	17 The Agency and its program administrators for both the
2212	2212	18 Adjustable Block program and the Illinois Solar for All
2213	2213	19 Program, consistent with the requirements of this
2214	2214	20 subsection (c) and subsection (b) of Section 1-56 of this
2215	2215	21 Act, shall propose the Adjustable Block program terms,
2216	2216	22 conditions, and requirements, including the prices to be
2217	2217	23 paid for renewable energy credits, where applicable, and
2218	2218	24 requirements applicable to participating entities and
2219	2219	25 project applications, through the development, review, and
2220	2220	26 approval of the Agency's long-term renewable resources
2221	2221
2222	2222
2223	2223
2224	2224
2225	2225
2226	2226	SB2289 - 61 - LRB104 06374 AAS 16410 b
2227	2227
2228	2228
2229	2229	SB2289- 62 -LRB104 06374 AAS 16410 b SB2289 - 62 - LRB104 06374 AAS 16410 b
2230	2230	SB2289 - 62 - LRB104 06374 AAS 16410 b
2231	2231	1 procurement plan described in this subsection (c) and
2232	2232	2 paragraph (5) of subsection (b) of Section 16-111.5 of the
2233	2233	3 Public Utilities Act. Terms, conditions, and requirements
2234	2234	4 for program participation shall include the following:
2235	2235	5 (i) The Agency shall establish a registration
2236	2236	6 process for entities seeking to qualify for
2237	2237	7 program-administered incentive funding and establish
2238	2238	8 baseline qualifications for vendor approval. The
2239	2239	9 Agency must maintain a list of approved entities on
2240	2240	10 each program's website, and may revoke a vendor's
2241	2241	11 ability to receive program-administered incentive
2242	2242	12 funding status upon a determination that the vendor
2243	2243	13 failed to comply with contract terms, the law, or
2244	2244	14 other program requirements.
2245	2245	15 (ii) The Agency shall establish program
2246	2246	16 requirements and minimum contract terms to ensure
2247	2247	17 projects are properly installed and produce their
2248	2248	18 expected amounts of energy. Program requirements may
2249	2249	19 include on-site inspections and photo documentation of
2250	2250	20 projects under construction. The Agency may require
2251	2251	21 repairs, alterations, or additions to remedy any
2252	2252	22 material deficiencies discovered. Vendors who have a
2253	2253	23 disproportionately high number of deficient systems
2254	2254	24 may lose their eligibility to continue to receive
2255	2255	25 State-administered incentive funding through Agency
2256	2256	26 programs and procurements.
2257	2257
2258	2258
2259	2259
2260	2260
2261	2261
2262	2262	SB2289 - 62 - LRB104 06374 AAS 16410 b
2263	2263
2264	2264
2265	2265	SB2289- 63 -LRB104 06374 AAS 16410 b SB2289 - 63 - LRB104 06374 AAS 16410 b
2266	2266	SB2289 - 63 - LRB104 06374 AAS 16410 b
2267	2267	1 (iii) To discourage deceptive marketing or other
2268	2268	2 bad faith business practices, the Agency may require
2269	2269	3 direct program participants, including agents
2270	2270	4 operating on their behalf, to provide standardized
2271	2271	5 disclosures to a customer prior to that customer's
2272	2272	6 execution of a contract for the development of a
2273	2273	7 distributed generation system or a subscription to a
2274	2274	8 community solar project.
2275	2275	9 (iv) The Agency shall establish one or multiple
2276	2276	10 Consumer Complaints Centers to accept complaints
2277	2277	11 regarding businesses that participate in, or otherwise
2278	2278	12 benefit from, State-administered incentive funding
2279	2279	13 through Agency-administered programs. The Agency shall
2280	2280	14 maintain a public database of complaints with any
2281	2281	15 confidential or particularly sensitive information
2282	2282	16 redacted from public entries.
2283	2283	17 (v) Through a filing in the proceeding for the
2284	2284	18 approval of its long-term renewable energy resources
2285	2285	19 procurement plan, the Agency shall provide an annual
2286	2286	20 written report to the Illinois Commerce Commission
2287	2287	21 documenting the frequency and nature of complaints and
2288	2288	22 any enforcement actions taken in response to those
2289	2289	23 complaints.
2290	2290	24 (vi) The Agency shall schedule regular meetings
2291	2291	25 with representatives of the Office of the Attorney
2292	2292	26 General, the Illinois Commerce Commission, consumer
2293	2293
2294	2294
2295	2295
2296	2296
2297	2297
2298	2298	SB2289 - 63 - LRB104 06374 AAS 16410 b
2299	2299
2300	2300
2301	2301	SB2289- 64 -LRB104 06374 AAS 16410 b SB2289 - 64 - LRB104 06374 AAS 16410 b
2302	2302	SB2289 - 64 - LRB104 06374 AAS 16410 b
2303	2303	1 protection groups, and other interested stakeholders
2304	2304	2 to share relevant information about consumer
2305	2305	3 protection, project compliance, and complaints
2306	2306	4 received.
2307	2307	5 (vii) To the extent that complaints received
2308	2308	6 implicate the jurisdiction of the Office of the
2309	2309	7 Attorney General, the Illinois Commerce Commission, or
2310	2310	8 local, State, or federal law enforcement, the Agency
2311	2311	9 shall also refer complaints to those entities as
2312	2312	10 appropriate.
2313	2313	11 (N) The Agency shall establish the terms, conditions,
2314	2314	12 and program requirements for photovoltaic community
2315	2315	13 renewable generation projects with a goal to expand access
2316	2316	14 to a broader group of energy consumers, to ensure robust
2317	2317	15 participation opportunities for residential and small
2318	2318	16 commercial customers and those who cannot install
2319	2319	17 renewable energy on their own properties. Subject to
2320	2320	18 reasonable limitations, any plan approved by the
2321	2321	19 Commission shall allow subscriptions to community
2322	2322	20 renewable generation projects to be portable and
2323	2323	21 transferable. For purposes of this subparagraph (N),
2324	2324	22 "portable" means that subscriptions may be retained by the
2325	2325	23 subscriber even if the subscriber relocates or changes its
2326	2326	24 address within the same utility service territory; and
2327	2327	25 "transferable" means that a subscriber may assign or sell
2328	2328	26 subscriptions to another person within the same utility
2329	2329
2330	2330
2331	2331
2332	2332
2333	2333
2334	2334	SB2289 - 64 - LRB104 06374 AAS 16410 b
2335	2335
2336	2336
2337	2337	SB2289- 65 -LRB104 06374 AAS 16410 b SB2289 - 65 - LRB104 06374 AAS 16410 b
2338	2338	SB2289 - 65 - LRB104 06374 AAS 16410 b
2339	2339	1 service territory.
2340	2340	2 Through the development of its long-term renewable
2341	2341	3 resources procurement plan, the Agency may consider
2342	2342	4 whether community renewable generation projects utilizing
2343	2343	5 technologies other than photovoltaics should be supported
2344	2344	6 through State-administered incentive funding, and may
2345	2345	7 issue requests for information to gauge market demand.
2346	2346	8 Electric utilities shall provide a monetary credit to
2347	2347	9 a subscriber's subsequent bill for service for the
2348	2348	10 proportional output of a community renewable generation
2349	2349	11 project attributable to that subscriber as specified in
2350	2350	12 Section 16-107.5 of the Public Utilities Act.
2351	2351	13 The Agency shall purchase renewable energy credits
2352	2352	14 from subscribed shares of photovoltaic community renewable
2353	2353	15 generation projects through the Adjustable Block program
2354	2354	16 described in subparagraph (K) of this paragraph (1) or
2355	2355	17 through the Illinois Solar for All Program described in
2356	2356	18 Section 1-56 of this Act. The electric utility shall
2357	2357	19 purchase any unsubscribed energy from community renewable
2358	2358	20 generation projects that are Qualifying Facilities ("QF")
2359	2359	21 under the electric utility's tariff for purchasing the
2360	2360	22 output from QFs under Public Utilities Regulatory Policies
2361	2361	23 Act of 1978.
2362	2362	24 The owners of and any subscribers to a community
2363	2363	25 renewable generation project shall not be considered
2364	2364	26 public utilities or alternative retail electricity
2365	2365
2366	2366
2367	2367
2368	2368
2369	2369
2370	2370	SB2289 - 65 - LRB104 06374 AAS 16410 b
2371	2371
2372	2372
2373	2373	SB2289- 66 -LRB104 06374 AAS 16410 b SB2289 - 66 - LRB104 06374 AAS 16410 b
2374	2374	SB2289 - 66 - LRB104 06374 AAS 16410 b
2375	2375	1 suppliers under the Public Utilities Act solely as a
2376	2376	2 result of their interest in or subscription to a community
2377	2377	3 renewable generation project and shall not be required to
2378	2378	4 become an alternative retail electric supplier by
2379	2379	5 participating in a community renewable generation project
2380	2380	6 with a public utility.
2381	2381	7 (O) For the delivery year beginning June 1, 2018, the
2382	2382	8 long-term renewable resources procurement plan required by
2383	2383	9 this subsection (c) shall provide for the Agency to
2384	2384	10 procure contracts to continue offering the Illinois Solar
2385	2385	11 for All Program described in subsection (b) of Section
2386	2386	12 1-56 of this Act, and the contracts approved by the
2387	2387	13 Commission shall be executed by the utilities that are
2388	2388	14 subject to this subsection (c). The long-term renewable
2389	2389	15 resources procurement plan shall allocate up to
2390	2390	16 $50,000,000 per delivery year to fund the programs, and
2391	2391	17 the plan shall determine the amount of funding to be
2392	2392	18 apportioned to the programs identified in subsection (b)
2393	2393	19 of Section 1-56 of this Act; provided that for the
2394	2394	20 delivery years beginning June 1, 2021, June 1, 2022, and
2395	2395	21 June 1, 2023, the long-term renewable resources
2396	2396	22 procurement plan may average the annual budgets over a
2397	2397	23 3-year period to account for program ramp-up. For the
2398	2398	24 delivery years beginning June 1, 2021, June 1, 2024, June
2399	2399	25 1, 2027, and June 1, 2030 and additional $10,000,000 shall
2400	2400	26 be provided to the Department of Commerce and Economic
2401	2401
2402	2402
2403	2403
2404	2404
2405	2405
2406	2406	SB2289 - 66 - LRB104 06374 AAS 16410 b
2407	2407
2408	2408
2409	2409	SB2289- 67 -LRB104 06374 AAS 16410 b SB2289 - 67 - LRB104 06374 AAS 16410 b
2410	2410	SB2289 - 67 - LRB104 06374 AAS 16410 b
2411	2411	1 Opportunity to implement the workforce development
2412	2412	2 programs and reporting as outlined in Section 16-108.12 of
2413	2413	3 the Public Utilities Act. In making the determinations
2414	2414	4 required under this subparagraph (O), the Commission shall
2415	2415	5 consider the experience and performance under the programs
2416	2416	6 and any evaluation reports. The Commission shall also
2417	2417	7 provide for an independent evaluation of those programs on
2418	2418	8 a periodic basis that are funded under this subparagraph
2419	2419	9 (O).
2420	2420	10 (P) All programs and procurements under this
2421	2421	11 subsection (c) shall be designed to encourage
2422	2422	12 participating projects to use a diverse and equitable
2423	2423	13 workforce and a diverse set of contractors, including
2424	2424	14 minority-owned businesses, disadvantaged businesses,
2425	2425	15 trade unions, graduates of any workforce training programs
2426	2426	16 administered under this Act, and small businesses.
2427	2427	17 The Agency shall develop a method to optimize
2428	2428	18 procurement of renewable energy credits from proposed
2429	2429	19 utility-scale projects that are located in communities
2430	2430	20 eligible to receive Energy Transition Community Grants
2431	2431	21 pursuant to Section 10-20 of the Energy Community
2432	2432	22 Reinvestment Act. If this requirement conflicts with other
2433	2433	23 provisions of law or the Agency determines that full
2434	2434	24 compliance with the requirements of this subparagraph (P)
2435	2435	25 would be unreasonably costly or administratively
2436	2436	26 impractical, the Agency is to propose alternative
2437	2437
2438	2438
2439	2439
2440	2440
2441	2441
2442	2442	SB2289 - 67 - LRB104 06374 AAS 16410 b
2443	2443
2444	2444
2445	2445	SB2289- 68 -LRB104 06374 AAS 16410 b SB2289 - 68 - LRB104 06374 AAS 16410 b
2446	2446	SB2289 - 68 - LRB104 06374 AAS 16410 b
2447	2447	1 approaches to achieve development of renewable energy
2448	2448	2 resources in communities eligible to receive Energy
2449	2449	3 Transition Community Grants pursuant to Section 10-20 of
2450	2450	4 the Energy Community Reinvestment Act or seek an exemption
2451	2451	5 from this requirement from the Commission.
2452	2452	6 (Q) Each facility listed in subitems (i) through (ix)
2453	2453	7 of item (1) of this subparagraph (Q) for which a renewable
2454	2454	8 energy credit delivery contract is signed after the
2455	2455	9 effective date of this amendatory Act of the 102nd General
2456	2456	10 Assembly is subject to the following requirements through
2457	2457	11 the Agency's long-term renewable resources procurement
2458	2458	12 plan:
2459	2459	13 (1) Each facility shall be subject to the
2460	2460	14 prevailing wage requirements included in the
2461	2461	15 Prevailing Wage Act. The Agency shall require
2462	2462	16 verification that all construction performed on the
2463	2463	17 facility by the renewable energy credit delivery
2464	2464	18 contract holder, its contractors, or its
2465	2465	19 subcontractors relating to construction of the
2466	2466	20 facility is performed by construction employees
2467	2467	21 receiving an amount for that work equal to or greater
2468	2468	22 than the general prevailing rate, as that term is
2469	2469	23 defined in Section 3 of the Prevailing Wage Act. For
2470	2470	24 purposes of this item (1), "house of worship" means
2471	2471	25 property that is both (1) used exclusively by a
2472	2472	26 religious society or body of persons as a place for
2473	2473
2474	2474
2475	2475
2476	2476
2477	2477
2478	2478	SB2289 - 68 - LRB104 06374 AAS 16410 b
2479	2479
2480	2480
2481	2481	SB2289- 69 -LRB104 06374 AAS 16410 b SB2289 - 69 - LRB104 06374 AAS 16410 b
2482	2482	SB2289 - 69 - LRB104 06374 AAS 16410 b
2483	2483	1 religious exercise or religious worship and (2)
2484	2484	2 recognized as exempt from taxation pursuant to Section
2485	2485	3 15-40 of the Property Tax Code. This item (1) shall
2486	2486	4 apply to any the following:
2487	2487	5 (i) all new utility-scale wind projects;
2488	2488	6 (ii) all new utility-scale photovoltaic
2489	2489	7 projects;
2490	2490	8 (iii) all new brownfield photovoltaic
2491	2491	9 projects;
2492	2492	10 (iv) all new photovoltaic community renewable
2493	2493	11 energy facilities that qualify for item (iii) of
2494	2494	12 subparagraph (K) of this paragraph (1);
2495	2495	13 (v) all new community driven community
2496	2496	14 photovoltaic projects that qualify for item (v) of
2497	2497	15 subparagraph (K) of this paragraph (1);
2498	2498	16 (vi) all new photovoltaic projects on public
2499	2499	17 school land that qualify for item (iv) of
2500	2500	18 subparagraph (K) of this paragraph (1);
2501	2501	19 (vii) all new photovoltaic distributed
2502	2502	20 renewable energy generation devices that (1)
2503	2503	21 qualify for item (i) of subparagraph (K) of this
2504	2504	22 paragraph (1); (2) are not projects that serve
2505	2505	23 single-family or multi-family residential
2506	2506	24 buildings; and (3) are not houses of worship where
2507	2507	25 the aggregate capacity including collocated
2508	2508	26 projects would not exceed 100 kilowatts;
2509	2509
2510	2510
2511	2511
2512	2512
2513	2513
2514	2514	SB2289 - 69 - LRB104 06374 AAS 16410 b
2515	2515
2516	2516
2517	2517	SB2289- 70 -LRB104 06374 AAS 16410 b SB2289 - 70 - LRB104 06374 AAS 16410 b
2518	2518	SB2289 - 70 - LRB104 06374 AAS 16410 b
2519	2519	1 (viii) all new photovoltaic distributed
2520	2520	2 renewable energy generation devices that (1)
2521	2521	3 qualify for item (ii) of subparagraph (K) of this
2522	2522	4 paragraph (1); (2) are not projects that serve
2523	2523	5 single-family or multi-family residential
2524	2524	6 buildings; and (3) are not houses of worship where
2525	2525	7 the aggregate capacity including collocated
2526	2526	8 projects would not exceed 100 kilowatts;
2527	2527	9 (ix) all new, modernized, or retooled
2528	2528	10 hydropower facilities.
2529	2529	11 (2) Renewable energy credits procured from new
2530	2530	12 utility-scale wind projects, new utility-scale solar
2531	2531	13 projects, and new brownfield solar projects pursuant
2532	2532	14 to Agency procurement events occurring after the
2533	2533	15 effective date of this amendatory Act of the 102nd
2534	2534	16 General Assembly must be from facilities built by
2535	2535	17 general contractors that must enter into a project
2536	2536	18 labor agreement, as defined by this Act, prior to
2537	2537	19 construction. The project labor agreement shall be
2538	2538	20 filed with the Director in accordance with procedures
2539	2539	21 established by the Agency through its long-term
2540	2540	22 renewable resources procurement plan. Any information
2541	2541	23 submitted to the Agency in this item (2) shall be
2542	2542	24 considered commercially sensitive information. At a
2543	2543	25 minimum, the project labor agreement must provide the
2544	2544	26 names, addresses, and occupations of the owner of the
2545	2545
2546	2546
2547	2547
2548	2548
2549	2549
2550	2550	SB2289 - 70 - LRB104 06374 AAS 16410 b
2551	2551
2552	2552
2553	2553	SB2289- 71 -LRB104 06374 AAS 16410 b SB2289 - 71 - LRB104 06374 AAS 16410 b
2554	2554	SB2289 - 71 - LRB104 06374 AAS 16410 b
2555	2555	1 plant and the individuals representing the labor
2556	2556	2 organization employees participating in the project
2557	2557	3 labor agreement consistent with the Project Labor
2558	2558	4 Agreements Act. The agreement must also specify the
2559	2559	5 terms and conditions as defined by this Act.
2560	2560	6 (3) It is the intent of this Section to ensure that
2561	2561	7 economic development occurs across Illinois
2562	2562	8 communities, that emerging businesses may grow, and
2563	2563	9 that there is improved access to the clean energy
2564	2564	10 economy by persons who have greater economic burdens
2565	2565	11 to success. The Agency shall take into consideration
2566	2566	12 the unique cost of compliance of this subparagraph (Q)
2567	2567	13 that might be borne by equity eligible contractors,
2568	2568	14 shall include such costs when determining the price of
2569	2569	15 renewable energy credits in the Adjustable Block
2570	2570	16 program, and shall take such costs into consideration
2571	2571	17 in a nondiscriminatory manner when comparing bids for
2572	2572	18 competitive procurements. The Agency shall consider
2573	2573	19 costs associated with compliance whether in the
2574	2574	20 development, financing, or construction of projects.
2575	2575	21 The Agency shall periodically review the assumptions
2576	2576	22 in these costs and may adjust prices, in compliance
2577	2577	23 with subparagraph (M) of this paragraph (1).
2578	2578	24 (R) In its long-term renewable resources procurement
2579	2579	25 plan, the Agency shall establish a self-direct renewable
2580	2580	26 portfolio standard compliance program for eligible
2581	2581
2582	2582
2583	2583
2584	2584
2585	2585
2586	2586	SB2289 - 71 - LRB104 06374 AAS 16410 b
2587	2587
2588	2588
2589	2589	SB2289- 72 -LRB104 06374 AAS 16410 b SB2289 - 72 - LRB104 06374 AAS 16410 b
2590	2590	SB2289 - 72 - LRB104 06374 AAS 16410 b
2591	2591	1 self-direct customers that purchase renewable energy
2592	2592	2 credits from utility-scale wind and solar projects through
2593	2593	3 long-term agreements for purchase of renewable energy
2594	2594	4 credits as described in this Section. Such long-term
2595	2595	5 agreements may include the purchase of energy or other
2596	2596	6 products on a physical or financial basis and may involve
2597	2597	7 an alternative retail electric supplier as defined in
2598	2598	8 Section 16-102 of the Public Utilities Act. This program
2599	2599	9 shall take effect in the delivery year commencing June 1,
2600	2600	10 2023.
2601	2601	11 (1) For the purposes of this subparagraph:
2602	2602	12 "Eligible self-direct customer" means any retail
2603	2603	13 customers of an electric utility that serves 3,000,000
2604	2604	14 or more retail customers in the State and whose total
2605	2605	15 highest 30-minute demand was more than 10,000
2606	2606	16 kilowatts, or any retail customers of an electric
2607	2607	17 utility that serves less than 3,000,000 retail
2608	2608	18 customers but more than 500,000 retail customers in
2609	2609	19 the State and whose total highest 15-minute demand was
2610	2610	20 more than 10,000 kilowatts.
2611	2611	21 "Retail customer" has the meaning set forth in
2612	2612	22 Section 16-102 of the Public Utilities Act and
2613	2613	23 multiple retail customer accounts under the same
2614	2614	24 corporate parent may aggregate their account demands
2615	2615	25 to meet the 10,000 kilowatt threshold. The criteria
2616	2616	26 for determining whether this subparagraph is
2617	2617
2618	2618
2619	2619
2620	2620
2621	2621
2622	2622	SB2289 - 72 - LRB104 06374 AAS 16410 b
2623	2623
2624	2624
2625	2625	SB2289- 73 -LRB104 06374 AAS 16410 b SB2289 - 73 - LRB104 06374 AAS 16410 b
2626	2626	SB2289 - 73 - LRB104 06374 AAS 16410 b
2627	2627	1 applicable to a retail customer shall be based on the
2628	2628	2 12 consecutive billing periods prior to the start of
2629	2629	3 the year in which the application is filed.
2630	2630	4 (2) For renewable energy credits to count toward
2631	2631	5 the self-direct renewable portfolio standard
2632	2632	6 compliance program, they must:
2633	2633	7 (i) qualify as renewable energy credits as
2634	2634	8 defined in Section 1-10 of this Act;
2635	2635	9 (ii) be sourced from one or more renewable
2636	2636	10 energy generating facilities that comply with the
2637	2637	11 geographic requirements as set forth in
2638	2638	12 subparagraph (I) of paragraph (1) of subsection
2639	2639	13 (c) as interpreted through the Agency's long-term
2640	2640	14 renewable resources procurement plan, or, where
2641	2641	15 applicable, the geographic requirements that
2642	2642	16 governed utility-scale renewable energy credits at
2643	2643	17 the time the eligible self-direct customer entered
2644	2644	18 into the applicable renewable energy credit
2645	2645	19 purchase agreement;
2646	2646	20 (iii) be procured through long-term contracts
2647	2647	21 with term lengths of at least 10 years either
2648	2648	22 directly with the renewable energy generating
2649	2649	23 facility or through a bundled power purchase
2650	2650	24 agreement, a virtual power purchase agreement, an
2651	2651	25 agreement between the renewable generating
2652	2652	26 facility, an alternative retail electric supplier,
2653	2653
2654	2654
2655	2655
2656	2656
2657	2657
2658	2658	SB2289 - 73 - LRB104 06374 AAS 16410 b
2659	2659
2660	2660
2661	2661	SB2289- 74 -LRB104 06374 AAS 16410 b SB2289 - 74 - LRB104 06374 AAS 16410 b
2662	2662	SB2289 - 74 - LRB104 06374 AAS 16410 b
2663	2663	1 and the customer, or such other structure as is
2664	2664	2 permissible under this subparagraph (R);
2665	2665	3 (iv) be equivalent in volume to at least 40%
2666	2666	4 of the eligible self-direct customer's usage,
2667	2667	5 determined annually by the eligible self-direct
2668	2668	6 customer's usage during the previous delivery
2669	2669	7 year, measured to the nearest megawatt-hour;
2670	2670	8 (v) be retired by or on behalf of the large
2671	2671	9 energy customer;
2672	2672	10 (vi) be sourced from new utility-scale wind
2673	2673	11 projects or new utility-scale solar projects; and
2674	2674	12 (vii) if the contracts for renewable energy
2675	2675	13 credits are entered into after the effective date
2676	2676	14 of this amendatory Act of the 102nd General
2677	2677	15 Assembly, the new utility-scale wind projects or
2678	2678	16 new utility-scale solar projects must comply with
2679	2679	17 the requirements established in subparagraphs (P)
2680	2680	18 and (Q) of paragraph (1) of this subsection (c)
2681	2681	19 and subsection (c-10).
2682	2682	20 (3) The self-direct renewable portfolio standard
2683	2683	21 compliance program shall be designed to allow eligible
2684	2684	22 self-direct customers to procure new renewable energy
2685	2685	23 credits from new utility-scale wind projects or new
2686	2686	24 utility-scale photovoltaic projects. The Agency shall
2687	2687	25 annually determine the amount of utility-scale
2688	2688	26 renewable energy credits it will include each year
2689	2689
2690	2690
2691	2691
2692	2692
2693	2693
2694	2694	SB2289 - 74 - LRB104 06374 AAS 16410 b
2695	2695
2696	2696
2697	2697	SB2289- 75 -LRB104 06374 AAS 16410 b SB2289 - 75 - LRB104 06374 AAS 16410 b
2698	2698	SB2289 - 75 - LRB104 06374 AAS 16410 b
2699	2699	1 from the self-direct renewable portfolio standard
2700	2700	2 compliance program, subject to receiving qualifying
2701	2701	3 applications. In making this determination, the Agency
2702	2702	4 shall evaluate publicly available analyses and studies
2703	2703	5 of the potential market size for utility-scale
2704	2704	6 renewable energy long-term purchase agreements by
2705	2705	7 commercial and industrial energy customers and make
2706	2706	8 that report publicly available. If demand for
2707	2707	9 participation in the self-direct renewable portfolio
2708	2708	10 standard compliance program exceeds availability, the
2709	2709	11 Agency shall ensure participation is evenly split
2710	2710	12 between commercial and industrial users to the extent
2711	2711	13 there is sufficient demand from both customer classes.
2712	2712	14 Each renewable energy credit procured pursuant to this
2713	2713	15 subparagraph (R) by a self-direct customer shall
2714	2714	16 reduce the total volume of renewable energy credits
2715	2715	17 the Agency is otherwise required to procure from new
2716	2716	18 utility-scale projects pursuant to subparagraph (C) of
2717	2717	19 paragraph (1) of this subsection (c) on behalf of
2718	2718	20 contracting utilities where the eligible self-direct
2719	2719	21 customer is located. The self-direct customer shall
2720	2720	22 file an annual compliance report with the Agency
2721	2721	23 pursuant to terms established by the Agency through
2722	2722	24 its long-term renewable resources procurement plan to
2723	2723	25 be eligible for participation in this program.
2724	2724	26 Customers must provide the Agency with their most
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729
2730	2730	SB2289 - 75 - LRB104 06374 AAS 16410 b
2731	2731
2732	2732
2733	2733	SB2289- 76 -LRB104 06374 AAS 16410 b SB2289 - 76 - LRB104 06374 AAS 16410 b
2734	2734	SB2289 - 76 - LRB104 06374 AAS 16410 b
2735	2735	1 recent electricity billing statements or other
2736	2736	2 information deemed necessary by the Agency to
2737	2737	3 demonstrate they are an eligible self-direct customer.
2738	2738	4 (4) The Commission shall approve a reduction in
2739	2739	5 the volumetric charges collected pursuant to Section
2740	2740	6 16-108 of the Public Utilities Act for approved
2741	2741	7 eligible self-direct customers equivalent to the
2742	2742	8 anticipated cost of renewable energy credit deliveries
2743	2743	9 under contracts for new utility-scale wind and new
2744	2744	10 utility-scale solar entered for each delivery year
2745	2745	11 after the large energy customer retires begins
2746	2746	12 retiring eligible new utility-scale utility scale
2747	2747	13 renewable energy credits for self-compliance. The
2748	2748	14 self-direct credit amount for each renewable energy
2749	2749	15 credit supplied shall be determined annually and is
2750	2750	16 equal to the volumetric charge collected pursuant to
2751	2751	17 Section 16-108 of the Public Utilities Act as
2752	2752	18 calculated under estimated portion of the cost
2753	2753	19 authorized by subparagraph (E) of paragraph (1) of
2754	2754	20 this subsection (c) to support that supported the
2755	2755	21 annual procurement of utility-scale renewable energy
2756	2756	22 credits in the prior delivery year using a methodology
2757	2757	23 described in the long-term renewable resources
2758	2758	24 procurement plan, expressed on a per kilowatthour
2759	2759	25 basis, and does not include (i) costs associated with
2760	2760	26 any contracts entered into before the delivery year in
2761	2761
2762	2762
2763	2763
2764	2764
2765	2765
2766	2766	SB2289 - 76 - LRB104 06374 AAS 16410 b
2767	2767
2768	2768
2769	2769	SB2289- 77 -LRB104 06374 AAS 16410 b SB2289 - 77 - LRB104 06374 AAS 16410 b
2770	2770	SB2289 - 77 - LRB104 06374 AAS 16410 b
2771	2771	1 which the customer files the initial compliance report
2772	2772	2 to be eligible for participation in the self-direct
2773	2773	3 program, and (ii) costs associated with procuring
2774	2774	4 renewable energy credits through existing and future
2775	2775	5 contracts through the Adjustable Block Program,
2776	2776	6 subsection (c-5) of this Section 1-75, and the Solar
2777	2777	7 for All Program. The Agency shall assist the
2778	2778	8 Commission in determining the current and future
2779	2779	9 costs. The Agency must determine the self-direct
2780	2780	10 credit amount for new and existing eligible
2781	2781	11 self-direct customers and submit this to the
2782	2782	12 Commission in an annual compliance filing. The
2783	2783	13 Commission must approve the self-direct credit amount
2784	2784	14 by June 1, 2023 and June 1 of each delivery year
2785	2785	15 thereafter. The approved self-direct credit amount
2786	2786	16 shall be multiplied by each renewable energy credit
2787	2787	17 procured by participating self-direct customers for up
2788	2788	18 to 100% of the self-direct customer's annual
2789	2789	19 consumption to form the self-direct customer's utility
2790	2790	20 bill credit amount. The self-direct customer's utility
2791	2791	21 bill credit amount shall consist of a credit towards
2792	2792	22 the utility-scale renewable energy portion of the
2793	2793	23 volumetric charge and shall not include a credit
2794	2794	24 towards the portion of the volumetric charge
2795	2795	25 associated with procuring renewable energy credits
2796	2796	26 through existing and future contracts through the
2797	2797
2798	2798
2799	2799
2800	2800
2801	2801
2802	2802	SB2289 - 77 - LRB104 06374 AAS 16410 b
2803	2803
2804	2804
2805	2805	SB2289- 78 -LRB104 06374 AAS 16410 b SB2289 - 78 - LRB104 06374 AAS 16410 b
2806	2806	SB2289 - 78 - LRB104 06374 AAS 16410 b
2807	2807	1 Adjustable Block Program, subsection (c-5) of this
2808	2808	2 Section 1-75, and the Solar for All Program.
2809	2809	3 (5) Customers described in this subparagraph (R)
2810	2810	4 shall apply, on a form developed by the Agency, to the
2811	2811	5 Agency to be designated as a self-direct eligible
2812	2812	6 customer. Once the Agency determines that a
2813	2813	7 self-direct customer is eligible for participation in
2814	2814	8 the program, the self-direct customer will remain
2815	2815	9 eligible until the end of the term of the contract.
2816	2816	10 Thereafter, application may be made not less than 12
2817	2817	11 months before the filing date of the long-term
2818	2818	12 renewable resources procurement plan described in this
2819	2819	13 Act. At a minimum, such application shall contain the
2820	2820	14 following:
2821	2821	15 (i) the customer's certification that, at the
2822	2822	16 time of the customer's application, the customer
2823	2823	17 qualifies to be a self-direct eligible customer,
2824	2824	18 including documents demonstrating that
2825	2825	19 qualification;
2826	2826	20 (ii) the customer's certification that the
2827	2827	21 customer has entered into or will enter into by
2828	2828	22 the beginning of the applicable procurement year,
2829	2829	23 one or more bilateral contracts for new wind
2830	2830	24 projects or new photovoltaic projects, including
2831	2831	25 supporting documentation;
2832	2832	26 (iii) certification that the contract or
2833	2833
2834	2834
2835	2835
2836	2836
2837	2837
2838	2838	SB2289 - 78 - LRB104 06374 AAS 16410 b
2839	2839
2840	2840
2841	2841	SB2289- 79 -LRB104 06374 AAS 16410 b SB2289 - 79 - LRB104 06374 AAS 16410 b
2842	2842	SB2289 - 79 - LRB104 06374 AAS 16410 b
2843	2843	1 contracts for new renewable energy resources are
2844	2844	2 long-term contracts with term lengths of at least
2845	2845	3 10 years, including supporting documentation;
2846	2846	4 (iv) certification of the quantities of
2847	2847	5 renewable energy credits that the customer will
2848	2848	6 purchase each year under such contract or
2849	2849	7 contracts, including supporting documentation;
2850	2850	8 (v) proof that the contract is sufficient to
2851	2851	9 produce renewable energy credits to be equivalent
2852	2852	10 in volume to at least 40% of the large energy
2853	2853	11 customer's usage from the previous delivery year,
2854	2854	12 measured to the nearest megawatt-hour; and
2855	2855	13 (vi) certification that the customer intends
2856	2856	14 to maintain the contract for the duration of the
2857	2857	15 length of the contract.
2858	2858	16 (6) If a customer receives the self-direct credit
2859	2859	17 but fails to properly procure and retire renewable
2860	2860	18 energy credits as required under this subparagraph
2861	2861	19 (R), the Commission, on petition from the Agency and
2862	2862	20 after notice and hearing, may direct such customer's
2863	2863	21 utility to recover the cost of the wrongfully received
2864	2864	22 self-direct credits plus interest through an adder to
2865	2865	23 charges assessed pursuant to Section 16-108 of the
2866	2866	24 Public Utilities Act. Self-direct customers who
2867	2867	25 knowingly fail to properly procure and retire
2868	2868	26 renewable energy credits and do not notify the Agency
2869	2869
2870	2870
2871	2871
2872	2872
2873	2873
2874	2874	SB2289 - 79 - LRB104 06374 AAS 16410 b
2875	2875
2876	2876
2877	2877	SB2289- 80 -LRB104 06374 AAS 16410 b SB2289 - 80 - LRB104 06374 AAS 16410 b
2878	2878	SB2289 - 80 - LRB104 06374 AAS 16410 b
2879	2879	1 are ineligible for continued participation in the
2880	2880	2 self-direct renewable portfolio standard compliance
2881	2881	3 program.
2882	2882	4 (2) (Blank).
2883	2883	5 (3) (Blank).
2884	2884	6 (4) The electric utility shall retire all renewable
2885	2885	7 energy credits used to comply with the standard.
2886	2886	8 (5) Beginning with the 2010 delivery year and ending
2887	2887	9 June 1, 2017, an electric utility subject to this
2888	2888	10 subsection (c) shall apply the lesser of the maximum
2889	2889	11 alternative compliance payment rate or the most recent
2890	2890	12 estimated alternative compliance payment rate for its
2891	2891	13 service territory for the corresponding compliance period,
2892	2892	14 established pursuant to subsection (d) of Section 16-115D
2893	2893	15 of the Public Utilities Act to its retail customers that
2894	2894	16 take service pursuant to the electric utility's hourly
2895	2895	17 pricing tariff or tariffs. The electric utility shall
2896	2896	18 retain all amounts collected as a result of the
2897	2897	19 application of the alternative compliance payment rate or
2898	2898	20 rates to such customers, and, beginning in 2011, the
2899	2899	21 utility shall include in the information provided under
2900	2900	22 item (1) of subsection (d) of Section 16-111.5 of the
2901	2901	23 Public Utilities Act the amounts collected under the
2902	2902	24 alternative compliance payment rate or rates for the prior
2903	2903	25 year ending May 31. Notwithstanding any limitation on the
2904	2904	26 procurement of renewable energy resources imposed by item
2905	2905
2906	2906
2907	2907
2908	2908
2909	2909
2910	2910	SB2289 - 80 - LRB104 06374 AAS 16410 b
2911	2911
2912	2912
2913	2913	SB2289- 81 -LRB104 06374 AAS 16410 b SB2289 - 81 - LRB104 06374 AAS 16410 b
2914	2914	SB2289 - 81 - LRB104 06374 AAS 16410 b
2915	2915	1 (2) of this subsection (c), the Agency shall increase its
2916	2916	2 spending on the purchase of renewable energy resources to
2917	2917	3 be procured by the electric utility for the next plan year
2918	2918	4 by an amount equal to the amounts collected by the utility
2919	2919	5 under the alternative compliance payment rate or rates in
2920	2920	6 the prior year ending May 31.
2921	2921	7 (6) The electric utility shall be entitled to recover
2922	2922	8 all of its costs associated with the procurement of
2923	2923	9 renewable energy credits under plans approved under this
2924	2924	10 Section and Section 16-111.5 of the Public Utilities Act.
2925	2925	11 These costs shall include associated reasonable expenses
2926	2926	12 for implementing the procurement programs, including, but
2927	2927	13 not limited to, the costs of administering and evaluating
2928	2928	14 the Adjustable Block program, through an automatic
2929	2929	15 adjustment clause tariff in accordance with subsection (k)
2930	2930	16 of Section 16-108 of the Public Utilities Act.
2931	2931	17 (7) Renewable energy credits procured from new
2932	2932	18 photovoltaic projects or new distributed renewable energy
2933	2933	19 generation devices under this Section after June 1, 2017
2934	2934	20 (the effective date of Public Act 99-906) must be procured
2935	2935	21 from devices installed by a qualified person in compliance
2936	2936	22 with the requirements of Section 16-128A of the Public
2937	2937	23 Utilities Act and any rules or regulations adopted
2938	2938	24 thereunder.
2939	2939	25 In meeting the renewable energy requirements of this
2940	2940	26 subsection (c), to the extent feasible and consistent with
2941	2941
2942	2942
2943	2943
2944	2944
2945	2945
2946	2946	SB2289 - 81 - LRB104 06374 AAS 16410 b
2947	2947
2948	2948
2949	2949	SB2289- 82 -LRB104 06374 AAS 16410 b SB2289 - 82 - LRB104 06374 AAS 16410 b
2950	2950	SB2289 - 82 - LRB104 06374 AAS 16410 b
2951	2951	1 State and federal law, the renewable energy credit
2952	2952	2 procurements, Adjustable Block solar program, and
2953	2953	3 community renewable generation program shall provide
2954	2954	4 employment opportunities for all segments of the
2955	2955	5 population and workforce, including minority-owned and
2956	2956	6 female-owned business enterprises, and shall not,
2957	2957	7 consistent with State and federal law, discriminate based
2958	2958	8 on race or socioeconomic status.
2959	2959	9 (c-5) Procurement of renewable energy credits from new
2960	2960	10 renewable energy facilities installed at or adjacent to the
2961	2961	11 sites of electric generating facilities that burn or burned
2962	2962	12 coal as their primary fuel source.
2963	2963	13 (1) In addition to the procurement of renewable energy
2964	2964	14 credits pursuant to long-term renewable resources
2965	2965	15 procurement plans in accordance with subsection (c) of
2966	2966	16 this Section and Section 16-111.5 of the Public Utilities
2967	2967	17 Act, the Agency shall conduct procurement events in
2968	2968	18 accordance with this subsection (c-5) for the procurement
2969	2969	19 by electric utilities that served more than 300,000 retail
2970	2970	20 customers in this State as of January 1, 2019 of renewable
2971	2971	21 energy credits from new renewable energy facilities to be
2972	2972	22 installed at or adjacent to the sites of electric
2973	2973	23 generating facilities that, as of January 1, 2016, burned
2974	2974	24 coal as their primary fuel source and meet the other
2975	2975	25 criteria specified in this subsection (c-5). For purposes
2976	2976	26 of this subsection (c-5), "new renewable energy facility"
2977	2977
2978	2978
2979	2979
2980	2980
2981	2981
2982	2982	SB2289 - 82 - LRB104 06374 AAS 16410 b
2983	2983
2984	2984
2985	2985	SB2289- 83 -LRB104 06374 AAS 16410 b SB2289 - 83 - LRB104 06374 AAS 16410 b
2986	2986	SB2289 - 83 - LRB104 06374 AAS 16410 b
2987	2987	1 means a new utility-scale solar project as defined in this
2988	2988	2 Section 1-75. The renewable energy credits procured
2989	2989	3 pursuant to this subsection (c-5) may be included or
2990	2990	4 counted for purposes of compliance with the amounts of
2991	2991	5 renewable energy credits required to be procured pursuant
2992	2992	6 to subsection (c) of this Section to the extent that there
2993	2993	7 are otherwise shortfalls in compliance with such
2994	2994	8 requirements. The procurement of renewable energy credits
2995	2995	9 by electric utilities pursuant to this subsection (c-5)
2996	2996	10 shall be funded solely by revenues collected from the Coal
2997	2997	11 to Solar and Energy Storage Initiative Charge provided for
2998	2998	12 in this subsection (c-5) and subsection (i-5) of Section
2999	2999	13 16-108 of the Public Utilities Act, shall not be funded by
3000	3000	14 revenues collected through any of the other funding
3001	3001	15 mechanisms provided for in subsection (c) of this Section,
3002	3002	16 and shall not be subject to the limitation imposed by
3003	3003	17 subsection (c) on charges to retail customers for costs to
3004	3004	18 procure renewable energy resources pursuant to subsection
3005	3005	19 (c), and shall not be subject to any other requirements or
3006	3006	20 limitations of subsection (c).
3007	3007	21 (2) The Agency shall conduct 2 procurement events to
3008	3008	22 select owners of electric generating facilities meeting
3009	3009	23 the eligibility criteria specified in this subsection
3010	3010	24 (c-5) to enter into long-term contracts to sell renewable
3011	3011	25 energy credits to electric utilities serving more than
3012	3012	26 300,000 retail customers in this State as of January 1,
3013	3013
3014	3014
3015	3015
3016	3016
3017	3017
3018	3018	SB2289 - 83 - LRB104 06374 AAS 16410 b
3019	3019
3020	3020
3021	3021	SB2289- 84 -LRB104 06374 AAS 16410 b SB2289 - 84 - LRB104 06374 AAS 16410 b
3022	3022	SB2289 - 84 - LRB104 06374 AAS 16410 b
3023	3023	1 2019. The first procurement event shall be conducted no
3024	3024	2 later than March 31, 2022, unless the Agency elects to
3025	3025	3 delay it, until no later than May 1, 2022, due to its
3026	3026	4 overall volume of work, and shall be to select owners of
3027	3027	5 electric generating facilities located in this State and
3028	3028	6 south of federal Interstate Highway 80 that meet the
3029	3029	7 eligibility criteria specified in this subsection (c-5).
3030	3030	8 The second procurement event shall be conducted no sooner
3031	3031	9 than September 30, 2022 and no later than October 31, 2022
3032	3032	10 and shall be to select owners of electric generating
3033	3033	11 facilities located anywhere in this State that meet the
3034	3034	12 eligibility criteria specified in this subsection (c-5).
3035	3035	13 The Agency shall establish and announce a time period,
3036	3036	14 which shall begin no later than 30 days prior to the
3037	3037	15 scheduled date for the procurement event, during which
3038	3038	16 applicants may submit applications to be selected as
3039	3039	17 suppliers of renewable energy credits pursuant to this
3040	3040	18 subsection (c-5). The eligibility criteria for selection
3041	3041	19 as a supplier of renewable energy credits pursuant to this
3042	3042	20 subsection (c-5) shall be as follows:
3043	3043	21 (A) The applicant owns an electric generating
3044	3044	22 facility located in this State that: (i) as of January
3045	3045	23 1, 2016, burned coal as its primary fuel to generate
3046	3046	24 electricity; and (ii) has, or had prior to retirement,
3047	3047	25 an electric generating capacity of at least 150
3048	3048	26 megawatts. The electric generating facility can be
3049	3049
3050	3050
3051	3051
3052	3052
3053	3053
3054	3054	SB2289 - 84 - LRB104 06374 AAS 16410 b
3055	3055
3056	3056
3057	3057	SB2289- 85 -LRB104 06374 AAS 16410 b SB2289 - 85 - LRB104 06374 AAS 16410 b
3058	3058	SB2289 - 85 - LRB104 06374 AAS 16410 b
3059	3059	1 either: (i) retired as of the date of the procurement
3060	3060	2 event; or (ii) still operating as of the date of the
3061	3061	3 procurement event.
3062	3062	4 (B) The applicant is not (i) an electric
3063	3063	5 cooperative as defined in Section 3-119 of the Public
3064	3064	6 Utilities Act, or (ii) an entity described in
3065	3065	7 subsection (b)(1) of Section 3-105 of the Public
3066	3066	8 Utilities Act, or an association or consortium of or
3067	3067	9 an entity owned by entities described in (i) or (ii);
3068	3068	10 and the coal-fueled electric generating facility was
3069	3069	11 at one time owned, in whole or in part, by a public
3070	3070	12 utility as defined in Section 3-105 of the Public
3071	3071	13 Utilities Act.
3072	3072	14 (C) If participating in the first procurement
3073	3073	15 event, the applicant proposes and commits to construct
3074	3074	16 and operate, at the site, and if necessary for
3075	3075	17 sufficient space on property adjacent to the existing
3076	3076	18 property, at which the electric generating facility
3077	3077	19 identified in paragraph (A) is located: (i) a new
3078	3078	20 renewable energy facility of at least 20 megawatts but
3079	3079	21 no more than 100 megawatts of electric generating
3080	3080	22 capacity, and (ii) an energy storage facility having a
3081	3081	23 storage capacity equal to at least 2 megawatts and at
3082	3082	24 most 10 megawatts. If participating in the second
3083	3083	25 procurement event, the applicant proposes and commits
3084	3084	26 to construct and operate, at the site, and if
3085	3085
3086	3086
3087	3087
3088	3088
3089	3089
3090	3090	SB2289 - 85 - LRB104 06374 AAS 16410 b
3091	3091
3092	3092
3093	3093	SB2289- 86 -LRB104 06374 AAS 16410 b SB2289 - 86 - LRB104 06374 AAS 16410 b
3094	3094	SB2289 - 86 - LRB104 06374 AAS 16410 b
3095	3095	1 necessary for sufficient space on property adjacent to
3096	3096	2 the existing property, at which the electric
3097	3097	3 generating facility identified in paragraph (A) is
3098	3098	4 located: (i) a new renewable energy facility of at
3099	3099	5 least 5 megawatts but no more than 20 megawatts of
3100	3100	6 electric generating capacity, and (ii) an energy
3101	3101	7 storage facility having a storage capacity equal to at
3102	3102	8 least 0.5 megawatts and at most one megawatt.
3103	3103	9 (D) The applicant agrees that the new renewable
3104	3104	10 energy facility and the energy storage facility will
3105	3105	11 be constructed or installed by a qualified entity or
3106	3106	12 entities in compliance with the requirements of
3107	3107	13 subsection (g) of Section 16-128A of the Public
3108	3108	14 Utilities Act and any rules adopted thereunder.
3109	3109	15 (E) The applicant agrees that personnel operating
3110	3110	16 the new renewable energy facility and the energy
3111	3111	17 storage facility will have the requisite skills,
3112	3112	18 knowledge, training, experience, and competence, which
3113	3113	19 may be demonstrated by completion or current
3114	3114	20 participation and ultimate completion by employees of
3115	3115	21 an accredited or otherwise recognized apprenticeship
3116	3116	22 program for the employee's particular craft, trade, or
3117	3117	23 skill, including through training and education
3118	3118	24 courses and opportunities offered by the owner to
3119	3119	25 employees of the coal-fueled electric generating
3120	3120	26 facility or by previous employment experience
3121	3121
3122	3122
3123	3123
3124	3124
3125	3125
3126	3126	SB2289 - 86 - LRB104 06374 AAS 16410 b
3127	3127
3128	3128
3129	3129	SB2289- 87 -LRB104 06374 AAS 16410 b SB2289 - 87 - LRB104 06374 AAS 16410 b
3130	3130	SB2289 - 87 - LRB104 06374 AAS 16410 b
3131	3131	1 performing the employee's particular work skill or
3132	3132	2 function.
3133	3133	3 (F) The applicant commits that not less than the
3134	3134	4 prevailing wage, as determined pursuant to the
3135	3135	5 Prevailing Wage Act, will be paid to the applicant's
3136	3136	6 employees engaged in construction activities
3137	3137	7 associated with the new renewable energy facility and
3138	3138	8 the new energy storage facility and to the employees
3139	3139	9 of applicant's contractors engaged in construction
3140	3140	10 activities associated with the new renewable energy
3141	3141	11 facility and the new energy storage facility, and
3142	3142	12 that, on or before the commercial operation date of
3143	3143	13 the new renewable energy facility, the applicant shall
3144	3144	14 file a report with the Agency certifying that the
3145	3145	15 requirements of this subparagraph (F) have been met.
3146	3146	16 (G) The applicant commits that if selected, it
3147	3147	17 will negotiate a project labor agreement for the
3148	3148	18 construction of the new renewable energy facility and
3149	3149	19 associated energy storage facility that includes
3150	3150	20 provisions requiring the parties to the agreement to
3151	3151	21 work together to establish diversity threshold
3152	3152	22 requirements and to ensure best efforts to meet
3153	3153	23 diversity targets, improve diversity at the applicable
3154	3154	24 job site, create diverse apprenticeship opportunities,
3155	3155	25 and create opportunities to employ former coal-fired
3156	3156	26 power plant workers.
3157	3157
3158	3158
3159	3159
3160	3160
3161	3161
3162	3162	SB2289 - 87 - LRB104 06374 AAS 16410 b
3163	3163
3164	3164
3165	3165	SB2289- 88 -LRB104 06374 AAS 16410 b SB2289 - 88 - LRB104 06374 AAS 16410 b
3166	3166	SB2289 - 88 - LRB104 06374 AAS 16410 b
3167	3167	1 (H) The applicant commits to enter into a contract
3168	3168	2 or contracts for the applicable duration to provide
3169	3169	3 specified numbers of renewable energy credits each
3170	3170	4 year from the new renewable energy facility to
3171	3171	5 electric utilities that served more than 300,000
3172	3172	6 retail customers in this State as of January 1, 2019,
3173	3173	7 at a price of $30 per renewable energy credit. The
3174	3174	8 price per renewable energy credit shall be fixed at
3175	3175	9 $30 for the applicable duration and the renewable
3176	3176	10 energy credits shall not be indexed renewable energy
3177	3177	11 credits as provided for in item (v) of subparagraph
3178	3178	12 (G) of paragraph (1) of subsection (c) of Section 1-75
3179	3179	13 of this Act. The applicable duration of each contract
3180	3180	14 shall be 20 years, unless the applicant is physically
3181	3181	15 interconnected to the PJM Interconnection, LLC
3182	3182	16 transmission grid and had a generating capacity of at
3183	3183	17 least 1,200 megawatts as of January 1, 2021, in which
3184	3184	18 case the applicable duration of the contract shall be
3185	3185	19 15 years.
3186	3186	20 (I) The applicant's application is certified by an
3187	3187	21 officer of the applicant and by an officer of the
3188	3188	22 applicant's ultimate parent company, if any.
3189	3189	23 (3) An applicant may submit applications to contract
3190	3190	24 to supply renewable energy credits from more than one new
3191	3191	25 renewable energy facility to be constructed at or adjacent
3192	3192	26 to one or more qualifying electric generating facilities
3193	3193
3194	3194
3195	3195
3196	3196
3197	3197
3198	3198	SB2289 - 88 - LRB104 06374 AAS 16410 b
3199	3199
3200	3200
3201	3201	SB2289- 89 -LRB104 06374 AAS 16410 b SB2289 - 89 - LRB104 06374 AAS 16410 b
3202	3202	SB2289 - 89 - LRB104 06374 AAS 16410 b
3203	3203	1 owned by the applicant. The Agency may select new
3204	3204	2 renewable energy facilities to be located at or adjacent
3205	3205	3 to the sites of more than one qualifying electric
3206	3206	4 generation facility owned by an applicant to contract with
3207	3207	5 electric utilities to supply renewable energy credits from
3208	3208	6 such facilities.
3209	3209	7 (4) The Agency shall assess fees to each applicant to
3210	3210	8 recover the Agency's costs incurred in receiving and
3211	3211	9 evaluating applications, conducting the procurement event,
3212	3212	10 developing contracts for sale, delivery and purchase of
3213	3213	11 renewable energy credits, and monitoring the
3214	3214	12 administration of such contracts, as provided for in this
3215	3215	13 subsection (c-5), including fees paid to a procurement
3216	3216	14 administrator retained by the Agency for one or more of
3217	3217	15 these purposes.
3218	3218	16 (5) The Agency shall select the applicants and the new
3219	3219	17 renewable energy facilities to contract with electric
3220	3220	18 utilities to supply renewable energy credits in accordance
3221	3221	19 with this subsection (c-5). In the first procurement
3222	3222	20 event, the Agency shall select applicants and new
3223	3223	21 renewable energy facilities to supply renewable energy
3224	3224	22 credits, at a price of $30 per renewable energy credit,
3225	3225	23 aggregating to no less than 400,000 renewable energy
3226	3226	24 credits per year for the applicable duration, assuming
3227	3227	25 sufficient qualifying applications to supply, in the
3228	3228	26 aggregate, at least that amount of renewable energy
3229	3229
3230	3230
3231	3231
3232	3232
3233	3233
3234	3234	SB2289 - 89 - LRB104 06374 AAS 16410 b
3235	3235
3236	3236
3237	3237	SB2289- 90 -LRB104 06374 AAS 16410 b SB2289 - 90 - LRB104 06374 AAS 16410 b
3238	3238	SB2289 - 90 - LRB104 06374 AAS 16410 b
3239	3239	1 credits per year; and not more than 580,000 renewable
3240	3240	2 energy credits per year for the applicable duration. In
3241	3241	3 the second procurement event, the Agency shall select
3242	3242	4 applicants and new renewable energy facilities to supply
3243	3243	5 renewable energy credits, at a price of $30 per renewable
3244	3244	6 energy credit, aggregating to no more than 625,000
3245	3245	7 renewable energy credits per year less the amount of
3246	3246	8 renewable energy credits each year contracted for as a
3247	3247	9 result of the first procurement event, for the applicable
3248	3248	10 durations. The number of renewable energy credits to be
3249	3249	11 procured as specified in this paragraph (5) shall not be
3250	3250	12 reduced based on renewable energy credits procured in the
3251	3251	13 self-direct renewable energy credit compliance program
3252	3252	14 established pursuant to subparagraph (R) of paragraph (1)
3253	3253	15 of subsection (c) of Section 1-75.
3254	3254	16 (6) The obligation to purchase renewable energy
3255	3255	17 credits from the applicants and their new renewable energy
3256	3256	18 facilities selected by the Agency shall be allocated to
3257	3257	19 the electric utilities based on their respective
3258	3258	20 percentages of kilowatthours delivered to delivery
3259	3259	21 services customers to the aggregate kilowatthour
3260	3260	22 deliveries by the electric utilities to delivery services
3261	3261	23 customers for the year ended December 31, 2021. In order
3262	3262	24 to achieve these allocation percentages between or among
3263	3263	25 the electric utilities, the Agency shall require each
3264	3264	26 applicant that is selected in the procurement event to
3265	3265
3266	3266
3267	3267
3268	3268
3269	3269
3270	3270	SB2289 - 90 - LRB104 06374 AAS 16410 b
3271	3271
3272	3272
3273	3273	SB2289- 91 -LRB104 06374 AAS 16410 b SB2289 - 91 - LRB104 06374 AAS 16410 b
3274	3274	SB2289 - 91 - LRB104 06374 AAS 16410 b
3275	3275	1 enter into a contract with each electric utility for the
3276	3276	2 sale and purchase of renewable energy credits from each
3277	3277	3 new renewable energy facility to be constructed and
3278	3278	4 operated by the applicant, with the sale and purchase
3279	3279	5 obligations under the contracts to aggregate to the total
3280	3280	6 number of renewable energy credits per year to be supplied
3281	3281	7 by the applicant from the new renewable energy facility.
3282	3282	8 (7) The Agency shall submit its proposed selection of
3283	3283	9 applicants, new renewable energy facilities to be
3284	3284	10 constructed, and renewable energy credit amounts for each
3285	3285	11 procurement event to the Commission for approval. The
3286	3286	12 Commission shall, within 2 business days after receipt of
3287	3287	13 the Agency's proposed selections, approve the proposed
3288	3288	14 selections if it determines that the applicants and the
3289	3289	15 new renewable energy facilities to be constructed meet the
3290	3290	16 selection criteria set forth in this subsection (c-5) and
3291	3291	17 that the Agency seeks approval for contracts of applicable
3292	3292	18 durations aggregating to no more than the maximum amount
3293	3293	19 of renewable energy credits per year authorized by this
3294	3294	20 subsection (c-5) for the procurement event, at a price of
3295	3295	21 $30 per renewable energy credit.
3296	3296	22 (8) The Agency, in conjunction with its procurement
3297	3297	23 administrator if one is retained, the electric utilities,
3298	3298	24 and potential applicants for contracts to produce and
3299	3299	25 supply renewable energy credits pursuant to this
3300	3300	26 subsection (c-5), shall develop a standard form contract
3301	3301
3302	3302
3303	3303
3304	3304
3305	3305
3306	3306	SB2289 - 91 - LRB104 06374 AAS 16410 b
3307	3307
3308	3308
3309	3309	SB2289- 92 -LRB104 06374 AAS 16410 b SB2289 - 92 - LRB104 06374 AAS 16410 b
3310	3310	SB2289 - 92 - LRB104 06374 AAS 16410 b
3311	3311	1 for the sale, delivery and purchase of renewable energy
3312	3312	2 credits pursuant to this subsection (c-5). Each contract
3313	3313	3 resulting from the first procurement event shall allow for
3314	3314	4 a commercial operation date for the new renewable energy
3315	3315	5 facility of either June 1, 2023 or June 1, 2024, with such
3316	3316	6 dates subject to adjustment as provided in this paragraph.
3317	3317	7 Each contract resulting from the second procurement event
3318	3318	8 shall provide for a commercial operation date on June 1
3319	3319	9 next occurring up to 48 months after execution of the
3320	3320	10 contract. Each contract shall provide that the owner shall
3321	3321	11 receive payments for renewable energy credits for the
3322	3322	12 applicable durations beginning with the commercial
3323	3323	13 operation date of the new renewable energy facility. The
3324	3324	14 form contract shall provide for adjustments to the
3325	3325	15 commercial operation and payment start dates as needed due
3326	3326	16 to any delays in completing the procurement and
3327	3327	17 contracting processes, in finalizing interconnection
3328	3328	18 agreements and installing interconnection facilities, and
3329	3329	19 in obtaining other necessary governmental permits and
3330	3330	20 approvals. The form contract shall be, to the maximum
3331	3331	21 extent possible, consistent with standard electric
3332	3332	22 industry contracts for sale, delivery, and purchase of
3333	3333	23 renewable energy credits while taking into account the
3334	3334	24 specific requirements of this subsection (c-5). The form
3335	3335	25 contract shall provide for over-delivery and
3336	3336	26 under-delivery of renewable energy credits within
3337	3337
3338	3338
3339	3339
3340	3340
3341	3341
3342	3342	SB2289 - 92 - LRB104 06374 AAS 16410 b
3343	3343
3344	3344
3345	3345	SB2289- 93 -LRB104 06374 AAS 16410 b SB2289 - 93 - LRB104 06374 AAS 16410 b
3346	3346	SB2289 - 93 - LRB104 06374 AAS 16410 b
3347	3347	1 reasonable ranges during each 12-month period and penalty,
3348	3348	2 default, and enforcement provisions for failure of the
3349	3349	3 selling party to deliver renewable energy credits as
3350	3350	4 specified in the contract and to comply with the
3351	3351	5 requirements of this subsection (c-5). The standard form
3352	3352	6 contract shall specify that all renewable energy credits
3353	3353	7 delivered to the electric utility pursuant to the contract
3354	3354	8 shall be retired. The Agency shall make the proposed
3355	3355	9 contracts available for a reasonable period for comment by
3356	3356	10 potential applicants, and shall publish the final form
3357	3357	11 contract at least 30 days before the date of the first
3358	3358	12 procurement event.
3359	3359	13 (9) Coal to Solar and Energy Storage Initiative
3360	3360	14 Charge.
3361	3361	15 (A) By no later than July 1, 2022, each electric
3362	3362	16 utility that served more than 300,000 retail customers
3363	3363	17 in this State as of January 1, 2019 shall file a tariff
3364	3364	18 with the Commission for the billing and collection of
3365	3365	19 a Coal to Solar and Energy Storage Initiative Charge
3366	3366	20 in accordance with subsection (i-5) of Section 16-108
3367	3367	21 of the Public Utilities Act, with such tariff to be
3368	3368	22 effective, following review and approval or
3369	3369	23 modification by the Commission, beginning January 1,
3370	3370	24 2023. The tariff shall provide for the calculation and
3371	3371	25 setting of the electric utility's Coal to Solar and
3372	3372	26 Energy Storage Initiative Charge to collect revenues
3373	3373
3374	3374
3375	3375
3376	3376
3377	3377
3378	3378	SB2289 - 93 - LRB104 06374 AAS 16410 b
3379	3379
3380	3380
3381	3381	SB2289- 94 -LRB104 06374 AAS 16410 b SB2289 - 94 - LRB104 06374 AAS 16410 b
3382	3382	SB2289 - 94 - LRB104 06374 AAS 16410 b
3383	3383	1 estimated to be sufficient, in the aggregate, (i) to
3384	3384	2 enable the electric utility to pay for the renewable
3385	3385	3 energy credits it has contracted to purchase in the
3386	3386	4 delivery year beginning June 1, 2023 and each delivery
3387	3387	5 year thereafter from new renewable energy facilities
3388	3388	6 located at the sites of qualifying electric generating
3389	3389	7 facilities, and (ii) to fund the grant payments to be
3390	3390	8 made in each delivery year by the Department of
3391	3391	9 Commerce and Economic Opportunity, or any successor
3392	3392	10 department or agency, which shall be referred to in
3393	3393	11 this subsection (c-5) as the Department, pursuant to
3394	3394	12 paragraph (10) of this subsection (c-5). The electric
3395	3395	13 utility's tariff shall provide for the billing and
3396	3396	14 collection of the Coal to Solar and Energy Storage
3397	3397	15 Initiative Charge on each kilowatthour of electricity
3398	3398	16 delivered to its delivery services customers within
3399	3399	17 its service territory and shall provide for an annual
3400	3400	18 reconciliation of revenues collected with actual
3401	3401	19 costs, in accordance with subsection (i-5) of Section
3402	3402	20 16-108 of the Public Utilities Act.
3403	3403	21 (B) Each electric utility shall remit on a monthly
3404	3404	22 basis to the State Treasurer, for deposit in the Coal
3405	3405	23 to Solar and Energy Storage Initiative Fund provided
3406	3406	24 for in this subsection (c-5), the electric utility's
3407	3407	25 collections of the Coal to Solar and Energy Storage
3408	3408	26 Initiative Charge in the amount estimated to be needed
3409	3409
3410	3410
3411	3411
3412	3412
3413	3413
3414	3414	SB2289 - 94 - LRB104 06374 AAS 16410 b
3415	3415
3416	3416
3417	3417	SB2289- 95 -LRB104 06374 AAS 16410 b SB2289 - 95 - LRB104 06374 AAS 16410 b
3418	3418	SB2289 - 95 - LRB104 06374 AAS 16410 b
3419	3419	1 by the Department for grant payments pursuant to grant
3420	3420	2 contracts entered into by the Department pursuant to
3421	3421	3 paragraph (10) of this subsection (c-5).
3422	3422	4 (10) Coal to Solar and Energy Storage Initiative Fund.
3423	3423	5 (A) The Coal to Solar and Energy Storage
3424	3424	6 Initiative Fund is established as a special fund in
3425	3425	7 the State treasury. The Coal to Solar and Energy
3426	3426	8 Storage Initiative Fund is authorized to receive, by
3427	3427	9 statutory deposit, that portion specified in item (B)
3428	3428	10 of paragraph (9) of this subsection (c-5) of moneys
3429	3429	11 collected by electric utilities through imposition of
3430	3430	12 the Coal to Solar and Energy Storage Initiative Charge
3431	3431	13 required by this subsection (c-5). The Coal to Solar
3432	3432	14 and Energy Storage Initiative Fund shall be
3433	3433	15 administered by the Department to provide grants to
3434	3434	16 support the installation and operation of energy
3435	3435	17 storage facilities at the sites of qualifying electric
3436	3436	18 generating facilities meeting the criteria specified
3437	3437	19 in this paragraph (10).
3438	3438	20 (B) The Coal to Solar and Energy Storage
3439	3439	21 Initiative Fund shall not be subject to sweeps,
3440	3440	22 administrative charges, or chargebacks, including, but
3441	3441	23 not limited to, those authorized under Section 8h of
3442	3442	24 the State Finance Act, that would in any way result in
3443	3443	25 the transfer of those funds from the Coal to Solar and
3444	3444	26 Energy Storage Initiative Fund to any other fund of
3445	3445
3446	3446
3447	3447
3448	3448
3449	3449
3450	3450	SB2289 - 95 - LRB104 06374 AAS 16410 b
3451	3451
3452	3452
3453	3453	SB2289- 96 -LRB104 06374 AAS 16410 b SB2289 - 96 - LRB104 06374 AAS 16410 b
3454	3454	SB2289 - 96 - LRB104 06374 AAS 16410 b
3455	3455	1 this State or in having any such funds utilized for any
3456	3456	2 purpose other than the express purposes set forth in
3457	3457	3 this paragraph (10).
3458	3458	4 (C) The Department shall utilize up to
3459	3459	5 $280,500,000 in the Coal to Solar and Energy Storage
3460	3460	6 Initiative Fund for grants, assuming sufficient
3461	3461	7 qualifying applicants, to support installation of
3462	3462	8 energy storage facilities at the sites of up to 3
3463	3463	9 qualifying electric generating facilities located in
3464	3464	10 the Midcontinent Independent System Operator, Inc.,
3465	3465	11 region in Illinois and the sites of up to 2 qualifying
3466	3466	12 electric generating facilities located in the PJM
3467	3467	13 Interconnection, LLC region in Illinois that meet the
3468	3468	14 criteria set forth in this subparagraph (C). The
3469	3469	15 criteria for receipt of a grant pursuant to this
3470	3470	16 subparagraph (C) are as follows:
3471	3471	17 (1) the electric generating facility at the
3472	3472	18 site has, or had prior to retirement, an electric
3473	3473	19 generating capacity of at least 150 megawatts;
3474	3474	20 (2) the electric generating facility burns (or
3475	3475	21 burned prior to retirement) coal as its primary
3476	3476	22 source of fuel;
3477	3477	23 (3) if the electric generating facility is
3478	3478	24 retired, it was retired subsequent to January 1,
3479	3479	25 2016;
3480	3480	26 (4) the owner of the electric generating
3481	3481
3482	3482
3483	3483
3484	3484
3485	3485
3486	3486	SB2289 - 96 - LRB104 06374 AAS 16410 b
3487	3487
3488	3488
3489	3489	SB2289- 97 -LRB104 06374 AAS 16410 b SB2289 - 97 - LRB104 06374 AAS 16410 b
3490	3490	SB2289 - 97 - LRB104 06374 AAS 16410 b
3491	3491	1 facility has not been selected by the Agency
3492	3492	2 pursuant to this subsection (c-5) of this Section
3493	3493	3 to enter into a contract to sell renewable energy
3494	3494	4 credits to one or more electric utilities from a
3495	3495	5 new renewable energy facility located or to be
3496	3496	6 located at or adjacent to the site at which the
3497	3497	7 electric generating facility is located;
3498	3498	8 (5) the electric generating facility located
3499	3499	9 at the site was at one time owned, in whole or in
3500	3500	10 part, by a public utility as defined in Section
3501	3501	11 3-105 of the Public Utilities Act;
3502	3502	12 (6) the electric generating facility at the
3503	3503	13 site is not owned by (i) an electric cooperative
3504	3504	14 as defined in Section 3-119 of the Public
3505	3505	15 Utilities Act, or (ii) an entity described in
3506	3506	16 subsection (b)(1) of Section 3-105 of the Public
3507	3507	17 Utilities Act, or an association or consortium of
3508	3508	18 or an entity owned by entities described in items
3509	3509	19 (i) or (ii);
3510	3510	20 (7) the proposed energy storage facility at
3511	3511	21 the site will have energy storage capacity of at
3512	3512	22 least 37 megawatts;
3513	3513	23 (8) the owner commits to place the energy
3514	3514	24 storage facility into commercial operation on
3515	3515	25 either June 1, 2023, June 1, 2024, or June 1, 2025,
3516	3516	26 with such date subject to adjustment as needed due
3517	3517
3518	3518
3519	3519
3520	3520
3521	3521
3522	3522	SB2289 - 97 - LRB104 06374 AAS 16410 b
3523	3523
3524	3524
3525	3525	SB2289- 98 -LRB104 06374 AAS 16410 b SB2289 - 98 - LRB104 06374 AAS 16410 b
3526	3526	SB2289 - 98 - LRB104 06374 AAS 16410 b
3527	3527	1 to any delays in completing the grant contracting
3528	3528	2 process, in finalizing interconnection agreements
3529	3529	3 and in installing interconnection facilities, and
3530	3530	4 in obtaining necessary governmental permits and
3531	3531	5 approvals;
3532	3532	6 (9) the owner agrees that the new energy
3533	3533	7 storage facility will be constructed or installed
3534	3534	8 by a qualified entity or entities consistent with
3535	3535	9 the requirements of subsection (g) of Section
3536	3536	10 16-128A of the Public Utilities Act and any rules
3537	3537	11 adopted under that Section;
3538	3538	12 (10) the owner agrees that personnel operating
3539	3539	13 the energy storage facility will have the
3540	3540	14 requisite skills, knowledge, training, experience,
3541	3541	15 and competence, which may be demonstrated by
3542	3542	16 completion or current participation and ultimate
3543	3543	17 completion by employees of an accredited or
3544	3544	18 otherwise recognized apprenticeship program for
3545	3545	19 the employee's particular craft, trade, or skill,
3546	3546	20 including through training and education courses
3547	3547	21 and opportunities offered by the owner to
3548	3548	22 employees of the coal-fueled electric generating
3549	3549	23 facility or by previous employment experience
3550	3550	24 performing the employee's particular work skill or
3551	3551	25 function;
3552	3552	26 (11) the owner commits that not less than the
3553	3553
3554	3554
3555	3555
3556	3556
3557	3557
3558	3558	SB2289 - 98 - LRB104 06374 AAS 16410 b
3559	3559
3560	3560
3561	3561	SB2289- 99 -LRB104 06374 AAS 16410 b SB2289 - 99 - LRB104 06374 AAS 16410 b
3562	3562	SB2289 - 99 - LRB104 06374 AAS 16410 b
3563	3563	1 prevailing wage, as determined pursuant to the
3564	3564	2 Prevailing Wage Act, will be paid to the owner's
3565	3565	3 employees engaged in construction activities
3566	3566	4 associated with the new energy storage facility
3567	3567	5 and to the employees of the owner's contractors
3568	3568	6 engaged in construction activities associated with
3569	3569	7 the new energy storage facility, and that, on or
3570	3570	8 before the commercial operation date of the new
3571	3571	9 energy storage facility, the owner shall file a
3572	3572	10 report with the Department certifying that the
3573	3573	11 requirements of this subparagraph (11) have been
3574	3574	12 met; and
3575	3575	13 (12) the owner commits that if selected to
3576	3576	14 receive a grant, it will negotiate a project labor
3577	3577	15 agreement for the construction of the new energy
3578	3578	16 storage facility that includes provisions
3579	3579	17 requiring the parties to the agreement to work
3580	3580	18 together to establish diversity threshold
3581	3581	19 requirements and to ensure best efforts to meet
3582	3582	20 diversity targets, improve diversity at the
3583	3583	21 applicable job site, create diverse apprenticeship
3584	3584	22 opportunities, and create opportunities to employ
3585	3585	23 former coal-fired power plant workers.
3586	3586	24 The Department shall accept applications for this
3587	3587	25 grant program until March 31, 2022 and shall announce
3588	3588	26 the award of grants no later than June 1, 2022. The
3589	3589
3590	3590
3591	3591
3592	3592
3593	3593
3594	3594	SB2289 - 99 - LRB104 06374 AAS 16410 b
3595	3595
3596	3596
3597	3597	SB2289- 100 -LRB104 06374 AAS 16410 b SB2289 - 100 - LRB104 06374 AAS 16410 b
3598	3598	SB2289 - 100 - LRB104 06374 AAS 16410 b
3599	3599	1 Department shall make the grant payments to a
3600	3600	2 recipient in equal annual amounts for 10 years
3601	3601	3 following the date the energy storage facility is
3602	3602	4 placed into commercial operation. The annual grant
3603	3603	5 payments to a qualifying energy storage facility shall
3604	3604	6 be $110,000 per megawatt of energy storage capacity,
3605	3605	7 with total annual grant payments pursuant to this
3606	3606	8 subparagraph (C) for qualifying energy storage
3607	3607	9 facilities not to exceed $28,050,000 in any year.
3608	3608	10 (D) Grants of funding for energy storage
3609	3609	11 facilities pursuant to subparagraph (C) of this
3610	3610	12 paragraph (10), from the Coal to Solar and Energy
3611	3611	13 Storage Initiative Fund, shall be memorialized in
3612	3612	14 grant contracts between the Department and the
3613	3613	15 recipient. The grant contracts shall specify the date
3614	3614	16 or dates in each year on which the annual grant
3615	3615	17 payments shall be paid.
3616	3616	18 (E) All disbursements from the Coal to Solar and
3617	3617	19 Energy Storage Initiative Fund shall be made only upon
3618	3618	20 warrants of the Comptroller drawn upon the Treasurer
3619	3619	21 as custodian of the Fund upon vouchers signed by the
3620	3620	22 Director of the Department or by the person or persons
3621	3621	23 designated by the Director of the Department for that
3622	3622	24 purpose. The Comptroller is authorized to draw the
3623	3623	25 warrants upon vouchers so signed. The Treasurer shall
3624	3624	26 accept all written warrants so signed and shall be
3625	3625
3626	3626
3627	3627
3628	3628
3629	3629
3630	3630	SB2289 - 100 - LRB104 06374 AAS 16410 b
3631	3631
3632	3632
3633	3633	SB2289- 101 -LRB104 06374 AAS 16410 b SB2289 - 101 - LRB104 06374 AAS 16410 b
3634	3634	SB2289 - 101 - LRB104 06374 AAS 16410 b
3635	3635	1 released from liability for all payments made on those
3636	3636	2 warrants.
3637	3637	3 (11) Diversity, equity, and inclusion plans.
3638	3638	4 (A) Each applicant selected in a procurement event
3639	3639	5 to contract to supply renewable energy credits in
3640	3640	6 accordance with this subsection (c-5) and each owner
3641	3641	7 selected by the Department to receive a grant or
3642	3642	8 grants to support the construction and operation of a
3643	3643	9 new energy storage facility or facilities in
3644	3644	10 accordance with this subsection (c-5) shall, within 60
3645	3645	11 days following the Commission's approval of the
3646	3646	12 applicant to contract to supply renewable energy
3647	3647	13 credits or within 60 days following execution of a
3648	3648	14 grant contract with the Department, as applicable,
3649	3649	15 submit to the Commission a diversity, equity, and
3650	3650	16 inclusion plan setting forth the applicant's or
3651	3651	17 owner's numeric goals for the diversity composition of
3652	3652	18 its supplier entities for the new renewable energy
3653	3653	19 facility or new energy storage facility, as
3654	3654	20 applicable, which shall be referred to for purposes of
3655	3655	21 this paragraph (11) as the project, and the
3656	3656	22 applicant's or owner's action plan and schedule for
3657	3657	23 achieving those goals.
3658	3658	24 (B) For purposes of this paragraph (11), diversity
3659	3659	25 composition shall be based on the percentage, which
3660	3660	26 shall be a minimum of 25%, of eligible expenditures
3661	3661
3662	3662
3663	3663
3664	3664
3665	3665
3666	3666	SB2289 - 101 - LRB104 06374 AAS 16410 b
3667	3667
3668	3668
3669	3669	SB2289- 102 -LRB104 06374 AAS 16410 b SB2289 - 102 - LRB104 06374 AAS 16410 b
3670	3670	SB2289 - 102 - LRB104 06374 AAS 16410 b
3671	3671	1 for contract awards for materials and services (which
3672	3672	2 shall be defined in the plan) to business enterprises
3673	3673	3 owned by minority persons, women, or persons with
3674	3674	4 disabilities as defined in Section 2 of the Business
3675	3675	5 Enterprise for Minorities, Women, and Persons with
3676	3676	6 Disabilities Act, to LGBTQ business enterprises, to
3677	3677	7 veteran-owned business enterprises, and to business
3678	3678	8 enterprises located in environmental justice
3679	3679	9 communities. The diversity composition goals of the
3680	3680	10 plan may include eligible expenditures in areas for
3681	3681	11 vendor or supplier opportunities in addition to
3682	3682	12 development and construction of the project, and may
3683	3683	13 exclude from eligible expenditures materials and
3684	3684	14 services with limited market availability, limited
3685	3685	15 production and availability from suppliers in the
3686	3686	16 United States, such as solar panels and storage
3687	3687	17 batteries, and material and services that are subject
3688	3688	18 to critical energy infrastructure or cybersecurity
3689	3689	19 requirements or restrictions. The plan may provide
3690	3690	20 that the diversity composition goals may be met
3691	3691	21 through Tier 1 Direct or Tier 2 subcontracting
3692	3692	22 expenditures or a combination thereof for the project.
3693	3693	23 (C) The plan shall provide for, but not be limited
3694	3694	24 to: (i) internal initiatives, including multi-tier
3695	3695	25 initiatives, by the applicant or owner, or by its
3696	3696	26 engineering, procurement and construction contractor
3697	3697
3698	3698
3699	3699
3700	3700
3701	3701
3702	3702	SB2289 - 102 - LRB104 06374 AAS 16410 b
3703	3703
3704	3704
3705	3705	SB2289- 103 -LRB104 06374 AAS 16410 b SB2289 - 103 - LRB104 06374 AAS 16410 b
3706	3706	SB2289 - 103 - LRB104 06374 AAS 16410 b
3707	3707	1 if one is used for the project, which for purposes of
3708	3708	2 this paragraph (11) shall be referred to as the EPC
3709	3709	3 contractor, to enable diverse businesses to be
3710	3710	4 considered fairly for selection to provide materials
3711	3711	5 and services; (ii) requirements for the applicant or
3712	3712	6 owner or its EPC contractor to proactively solicit and
3713	3713	7 utilize diverse businesses to provide materials and
3714	3714	8 services; and (iii) requirements for the applicant or
3715	3715	9 owner or its EPC contractor to hire a diverse
3716	3716	10 workforce for the project. The plan shall include a
3717	3717	11 description of the applicant's or owner's diversity
3718	3718	12 recruiting efforts both for the project and for other
3719	3719	13 areas of the applicant's or owner's business
3720	3720	14 operations. The plan shall provide for the imposition
3721	3721	15 of financial penalties on the applicant's or owner's
3722	3722	16 EPC contractor for failure to exercise best efforts to
3723	3723	17 comply with and execute the EPC contractor's diversity
3724	3724	18 obligations under the plan. The plan may provide for
3725	3725	19 the applicant or owner to set aside a portion of the
3726	3726	20 work on the project to serve as an incubation program
3727	3727	21 for qualified businesses, as specified in the plan,
3728	3728	22 owned by minority persons, women, persons with
3729	3729	23 disabilities, LGBTQ persons, and veterans, and
3730	3730	24 businesses located in environmental justice
3731	3731	25 communities, seeking to enter the renewable energy
3732	3732	26 industry.
3733	3733
3734	3734
3735	3735
3736	3736
3737	3737
3738	3738	SB2289 - 103 - LRB104 06374 AAS 16410 b
3739	3739
3740	3740
3741	3741	SB2289- 104 -LRB104 06374 AAS 16410 b SB2289 - 104 - LRB104 06374 AAS 16410 b
3742	3742	SB2289 - 104 - LRB104 06374 AAS 16410 b
3743	3743	1 (D) The applicant or owner may submit a revised or
3744	3744	2 updated plan to the Commission from time to time as
3745	3745	3 circumstances warrant. The applicant or owner shall
3746	3746	4 file annual reports with the Commission detailing the
3747	3747	5 applicant's or owner's progress in implementing its
3748	3748	6 plan and achieving its goals and any modifications the
3749	3749	7 applicant or owner has made to its plan to better
3750	3750	8 achieve its diversity, equity and inclusion goals. The
3751	3751	9 applicant or owner shall file a final report on the
3752	3752	10 fifth June 1 following the commercial operation date
3753	3753	11 of the new renewable energy resource or new energy
3754	3754	12 storage facility, but the applicant or owner shall
3755	3755	13 thereafter continue to be subject to applicable
3756	3756	14 reporting requirements of Section 5-117 of the Public
3757	3757	15 Utilities Act.
3758	3758	16 (c-10) Equity accountability system. It is the purpose of
3759	3759	17 this subsection (c-10) to create an equity accountability
3760	3760	18 system, which includes the minimum equity standards for all
3761	3761	19 renewable energy procurements, the equity category of the
3762	3762	20 Adjustable Block Program, and the equity prioritization for
3763	3763	21 noncompetitive procurements, that is successful in advancing
3764	3764	22 priority access to the clean energy economy for businesses and
3765	3765	23 workers from communities that have been excluded from economic
3766	3766	24 opportunities in the energy sector, have been subject to
3767	3767	25 disproportionate levels of pollution, and have
3768	3768	26 disproportionately experienced negative public health
3769	3769
3770	3770
3771	3771
3772	3772
3773	3773
3774	3774	SB2289 - 104 - LRB104 06374 AAS 16410 b
3775	3775
3776	3776
3777	3777	SB2289- 105 -LRB104 06374 AAS 16410 b SB2289 - 105 - LRB104 06374 AAS 16410 b
3778	3778	SB2289 - 105 - LRB104 06374 AAS 16410 b
3779	3779	1 outcomes. Further, it is the purpose of this subsection to
3780	3780	2 ensure that this equity accountability system is successful in
3781	3781	3 advancing equity across Illinois by providing access to the
3782	3782	4 clean energy economy for businesses and workers from
3783	3783	5 communities that have been historically excluded from economic
3784	3784	6 opportunities in the energy sector, have been subject to
3785	3785	7 disproportionate levels of pollution, and have
3786	3786	8 disproportionately experienced negative public health
3787	3787	9 outcomes.
3788	3788	10 (1) Minimum equity standards. The Agency shall create
3789	3789	11 programs with the purpose of increasing access to and
3790	3790	12 development of equity eligible contractors, who are prime
3791	3791	13 contractors and subcontractors, across all of the programs
3792	3792	14 it manages. All applications for renewable energy credit
3793	3793	15 procurements shall comply with specific minimum equity
3794	3794	16 commitments. Starting in the delivery year immediately
3795	3795	17 following the next long-term renewable resources
3796	3796	18 procurement plan, at least 10% of the project workforce
3797	3797	19 for each entity participating in a procurement program
3798	3798	20 outlined in this subsection (c-10) must be done by equity
3799	3799	21 eligible persons or equity eligible contractors. The
3800	3800	22 Agency shall increase the minimum percentage each delivery
3801	3801	23 year thereafter by increments that ensure a statewide
3802	3802	24 average of 30% of the project workforce for each entity
3803	3803	25 participating in a procurement program is done by equity
3804	3804	26 eligible persons or equity eligible contractors by 2030.
3805	3805
3806	3806
3807	3807
3808	3808
3809	3809
3810	3810	SB2289 - 105 - LRB104 06374 AAS 16410 b
3811	3811
3812	3812
3813	3813	SB2289- 106 -LRB104 06374 AAS 16410 b SB2289 - 106 - LRB104 06374 AAS 16410 b
3814	3814	SB2289 - 106 - LRB104 06374 AAS 16410 b
3815	3815	1 The Agency shall propose a schedule of percentage
3816	3816	2 increases to the minimum equity standards in its draft
3817	3817	3 revised renewable energy resources procurement plan
3818	3818	4 submitted to the Commission for approval pursuant to
3819	3819	5 paragraph (5) of subsection (b) of Section 16-111.5 of the
3820	3820	6 Public Utilities Act. In determining these annual
3821	3821	7 increases, the Agency shall have the discretion to
3822	3822	8 establish different minimum equity standards for different
3823	3823	9 types of procurements and different regions of the State
3824	3824	10 if the Agency finds that doing so will further the
3825	3825	11 purposes of this subsection (c-10). The proposed schedule
3826	3826	12 of annual increases shall be revisited and updated on an
3827	3827	13 annual basis. Revisions shall be developed with
3828	3828	14 stakeholder input, including from equity eligible persons,
3829	3829	15 equity eligible contractors, clean energy industry
3830	3830	16 representatives, and community-based organizations that
3831	3831	17 work with such persons and contractors.
3832	3832	18 (A) At the start of each delivery year, the Agency
3833	3833	19 shall require a compliance plan from each entity
3834	3834	20 participating in a procurement program of subsection
3835	3835	21 (c) of this Section that demonstrates how they will
3836	3836	22 achieve compliance with the minimum equity standard
3837	3837	23 percentage for work completed in that delivery year.
3838	3838	24 If an entity applies for its approved vendor or
3839	3839	25 designee status between delivery years, the Agency
3840	3840	26 shall require a compliance plan at the time of
3841	3841
3842	3842
3843	3843
3844	3844
3845	3845
3846	3846	SB2289 - 106 - LRB104 06374 AAS 16410 b
3847	3847
3848	3848
3849	3849	SB2289- 107 -LRB104 06374 AAS 16410 b SB2289 - 107 - LRB104 06374 AAS 16410 b
3850	3850	SB2289 - 107 - LRB104 06374 AAS 16410 b
3851	3851	1 application.
3852	3852	2 (B) Halfway through each delivery year, the Agency
3853	3853	3 shall require each entity participating in a
3854	3854	4 procurement program to confirm that it will achieve
3855	3855	5 compliance in that delivery year, when applicable. The
3856	3856	6 Agency may offer corrective action plans to entities
3857	3857	7 that are not on track to achieve compliance.
3858	3858	8 (C) At the end of each delivery year, each entity
3859	3859	9 participating and completing work in that delivery
3860	3860	10 year in a procurement program of subsection (c) shall
3861	3861	11 submit a report to the Agency that demonstrates how it
3862	3862	12 achieved compliance with the minimum equity standards
3863	3863	13 percentage for that delivery year.
3864	3864	14 (D) The Agency shall prohibit participation in
3865	3865	15 procurement programs by an approved vendor or
3866	3866	16 designee, as applicable, or entities with which an
3867	3867	17 approved vendor or designee, as applicable, shares a
3868	3868	18 common parent company if an approved vendor or
3869	3869	19 designee, as applicable, failed to meet the minimum
3870	3870	20 equity standards for the prior delivery year. Waivers
3871	3871	21 approved for lack of equity eligible persons or equity
3872	3872	22 eligible contractors in a geographic area of a project
3873	3873	23 shall not count against the approved vendor or
3874	3874	24 designee. The Agency shall offer a corrective action
3875	3875	25 plan for any such entities to assist them in obtaining
3876	3876	26 compliance and shall allow continued access to
3877	3877
3878	3878
3879	3879
3880	3880
3881	3881
3882	3882	SB2289 - 107 - LRB104 06374 AAS 16410 b
3883	3883
3884	3884
3885	3885	SB2289- 108 -LRB104 06374 AAS 16410 b SB2289 - 108 - LRB104 06374 AAS 16410 b
3886	3886	SB2289 - 108 - LRB104 06374 AAS 16410 b
3887	3887	1 procurement programs upon an approved vendor or
3888	3888	2 designee demonstrating compliance.
3889	3889	3 (E) The Agency shall pursue efficiencies achieved
3890	3890	4 by combining with other approved vendor or designee
3891	3891	5 reporting.
3892	3892	6 (2) Equity accountability system within the Adjustable
3893	3893	7 Block program. The equity category described in item (vi)
3894	3894	8 of subparagraph (K) of subsection (c) is only available to
3895	3895	9 applicants that are equity eligible contractors.
3896	3896	10 (3) Equity accountability system within competitive
3897	3897	11 procurements. Through its long-term renewable resources
3898	3898	12 procurement plan, the Agency shall develop requirements
3899	3899	13 for ensuring that competitive procurement processes,
3900	3900	14 including utility-scale solar, utility-scale wind, and
3901	3901	15 brownfield site photovoltaic projects, advance the equity
3902	3902	16 goals of this subsection (c-10). Subject to Commission
3903	3903	17 approval, the Agency shall develop bid application
3904	3904	18 requirements and a bid evaluation methodology for ensuring
3905	3905	19 that utilization of equity eligible contractors, whether
3906	3906	20 as bidders or as participants on project development, is
3907	3907	21 optimized, including requiring that winning or successful
3908	3908	22 applicants for utility-scale projects are or will partner
3909	3909	23 with equity eligible contractors and giving preference to
3910	3910	24 bids through which a higher portion of contract value
3911	3911	25 flows to equity eligible contractors. To the extent
3912	3912	26 practicable, entities participating in competitive
3913	3913
3914	3914
3915	3915
3916	3916
3917	3917
3918	3918	SB2289 - 108 - LRB104 06374 AAS 16410 b
3919	3919
3920	3920
3921	3921	SB2289- 109 -LRB104 06374 AAS 16410 b SB2289 - 109 - LRB104 06374 AAS 16410 b
3922	3922	SB2289 - 109 - LRB104 06374 AAS 16410 b
3923	3923	1 procurements shall also be required to meet all the equity
3924	3924	2 accountability requirements for approved vendors and their
3925	3925	3 designees under this subsection (c-10). In developing
3926	3926	4 these requirements, the Agency shall also consider whether
3927	3927	5 equity goals can be further advanced through additional
3928	3928	6 measures.
3929	3929	7 (4) In the first revision to the long-term renewable
3930	3930	8 energy resources procurement plan and each revision
3931	3931	9 thereafter, the Agency shall include the following:
3932	3932	10 (A) The current status and number of equity
3933	3933	11 eligible contractors listed in the Energy Workforce
3934	3934	12 Equity Database designed in subsection (c-25),
3935	3935	13 including the number of equity eligible contractors
3936	3936	14 with current certifications as issued by the Agency.
3937	3937	15 (B) A mechanism for measuring, tracking, and
3938	3938	16 reporting project workforce at the approved vendor or
3939	3939	17 designee level, as applicable, which shall include a
3940	3940	18 measurement methodology and records to be made
3941	3941	19 available for audit by the Agency or the Program
3942	3942	20 Administrator.
3943	3943	21 (C) A program for approved vendors, designees,
3944	3944	22 eligible persons, and equity eligible contractors to
3945	3945	23 receive trainings, guidance, and other support from
3946	3946	24 the Agency or its designee regarding the equity
3947	3947	25 category outlined in item (vi) of subparagraph (K) of
3948	3948	26 paragraph (1) of subsection (c) and in meeting the
3949	3949
3950	3950
3951	3951
3952	3952
3953	3953
3954	3954	SB2289 - 109 - LRB104 06374 AAS 16410 b
3955	3955
3956	3956
3957	3957	SB2289- 110 -LRB104 06374 AAS 16410 b SB2289 - 110 - LRB104 06374 AAS 16410 b
3958	3958	SB2289 - 110 - LRB104 06374 AAS 16410 b
3959	3959	1 minimum equity standards of this subsection (c-10).
3960	3960	2 (D) A process for certifying equity eligible
3961	3961	3 contractors and equity eligible persons. The
3962	3962	4 certification process shall coordinate with the Energy
3963	3963	5 Workforce Equity Database set forth in subsection
3964	3964	6 (c-25).
3965	3965	7 (E) An application for waiver of the minimum
3966	3966	8 equity standards of this subsection, which the Agency
3967	3967	9 shall have the discretion to grant in rare
3968	3968	10 circumstances. The Agency may grant such a waiver
3969	3969	11 where the applicant provides evidence of significant
3970	3970	12 efforts toward meeting the minimum equity commitment,
3971	3971	13 including: use of the Energy Workforce Equity
3972	3972	14 Database; efforts to hire or contract with entities
3973	3973	15 that hire eligible persons; and efforts to establish
3974	3974	16 contracting relationships with eligible contractors.
3975	3975	17 The Agency shall support applicants in understanding
3976	3976	18 the Energy Workforce Equity Database and other
3977	3977	19 resources for pursuing compliance of the minimum
3978	3978	20 equity standards. Waivers shall be project-specific,
3979	3979	21 unless the Agency deems it necessary to grant a waiver
3980	3980	22 across a portfolio of projects, and in effect for no
3981	3981	23 longer than one year. Any waiver extension or
3982	3982	24 subsequent waiver request from an applicant shall be
3983	3983	25 subject to the requirements of this Section and shall
3984	3984	26 specify efforts made to reach compliance. When
3985	3985
3986	3986
3987	3987
3988	3988
3989	3989
3990	3990	SB2289 - 110 - LRB104 06374 AAS 16410 b
3991	3991
3992	3992
3993	3993	SB2289- 111 -LRB104 06374 AAS 16410 b SB2289 - 111 - LRB104 06374 AAS 16410 b
3994	3994	SB2289 - 111 - LRB104 06374 AAS 16410 b
3995	3995	1 considering whether to grant a waiver, and to what
3996	3996	2 extent, the Agency shall consider the degree to which
3997	3997	3 similarly situated applicants have been able to meet
3998	3998	4 these minimum equity commitments. For repeated waiver
3999	3999	5 requests for specific lack of eligible persons or
4000	4000	6 eligible contractors available, the Agency shall make
4001	4001	7 recommendations to target recruitment to add such
4002	4002	8 eligible persons or eligible contractors to the
4003	4003	9 database.
4004	4004	10 (5) The Agency shall collect information about work on
4005	4005	11 projects or portfolios of projects subject to these
4006	4006	12 minimum equity standards to ensure compliance with this
4007	4007	13 subsection (c-10). Reporting in furtherance of this
4008	4008	14 requirement may be combined with other annual reporting
4009	4009	15 requirements. Such reporting shall include proof of
4010	4010	16 certification of each equity eligible contractor or equity
4011	4011	17 eligible person during the applicable time period.
4012	4012	18 (6) The Agency shall keep confidential all information
4013	4013	19 and communication that provides private or personal
4014	4014	20 information.
4015	4015	21 (7) Modifications to the equity accountability system.
4016	4016	22 As part of the update of the long-term renewable resources
4017	4017	23 procurement plan to be initiated in 2023, or sooner if the
4018	4018	24 Agency deems necessary, the Agency shall determine the
4019	4019	25 extent to which the equity accountability system described
4020	4020	26 in this subsection (c-10) has advanced the goals of this
4021	4021
4022	4022
4023	4023
4024	4024
4025	4025
4026	4026	SB2289 - 111 - LRB104 06374 AAS 16410 b
4027	4027
4028	4028
4029	4029	SB2289- 112 -LRB104 06374 AAS 16410 b SB2289 - 112 - LRB104 06374 AAS 16410 b
4030	4030	SB2289 - 112 - LRB104 06374 AAS 16410 b
4031	4031	1 amendatory Act of the 102nd General Assembly, including
4032	4032	2 through the inclusion of equity eligible persons and
4033	4033	3 equity eligible contractors in renewable energy credit
4034	4034	4 projects. If the Agency finds that the equity
4035	4035	5 accountability system has failed to meet those goals to
4036	4036	6 its fullest potential, the Agency may revise the following
4037	4037	7 criteria for future Agency procurements: (A) the
4038	4038	8 percentage of project workforce, or other appropriate
4039	4039	9 workforce measure, certified as equity eligible persons or
4040	4040	10 equity eligible contractors; (B) definitions for equity
4041	4041	11 investment eligible persons and equity investment eligible
4042	4042	12 community; and (C) such other modifications necessary to
4043	4043	13 advance the goals of this amendatory Act of the 102nd
4044	4044	14 General Assembly effectively. Such revised criteria may
4045	4045	15 also establish distinct equity accountability systems for
4046	4046	16 different types of procurements or different regions of
4047	4047	17 the State if the Agency finds that doing so will further
4048	4048	18 the purposes of such programs. Revisions shall be
4049	4049	19 developed with stakeholder input, including from equity
4050	4050	20 eligible persons, equity eligible contractors, and
4051	4051	21 community-based organizations that work with such persons
4052	4052	22 and contractors.
4053	4053	23 (c-15) Racial discrimination elimination powers and
4054	4054	24 process.
4055	4055	25 (1) Purpose. It is the purpose of this subsection to
4056	4056	26 empower the Agency and other State actors to remedy racial
4057	4057
4058	4058
4059	4059
4060	4060
4061	4061
4062	4062	SB2289 - 112 - LRB104 06374 AAS 16410 b
4063	4063
4064	4064
4065	4065	SB2289- 113 -LRB104 06374 AAS 16410 b SB2289 - 113 - LRB104 06374 AAS 16410 b
4066	4066	SB2289 - 113 - LRB104 06374 AAS 16410 b
4067	4067	1 discrimination in Illinois' clean energy economy as
4068	4068	2 effectively and expediently as possible, including through
4069	4069	3 the use of race-conscious remedies, such as race-conscious
4070	4070	4 contracting and hiring goals, as consistent with State and
4071	4071	5 federal law.
4072	4072	6 (2) Racial disparity and discrimination review
4073	4073	7 process.
4074	4074	8 (A) Within one year after awarding contracts using
4075	4075	9 the equity actions processes established in this
4076	4076	10 Section, the Agency shall publish a report evaluating
4077	4077	11 the effectiveness of the equity actions point criteria
4078	4078	12 of this Section in increasing participation of equity
4079	4079	13 eligible persons and equity eligible contractors. The
4080	4080	14 report shall disaggregate participating workers and
4081	4081	15 contractors by race and ethnicity. The report shall be
4082	4082	16 forwarded to the Governor, the General Assembly, and
4083	4083	17 the Illinois Commerce Commission and be made available
4084	4084	18 to the public.
4085	4085	19 (B) As soon as is practicable thereafter, the
4086	4086	20 Agency, in consultation with the Department of
4087	4087	21 Commerce and Economic Opportunity, Department of
4088	4088	22 Labor, and other agencies that may be relevant, shall
4089	4089	23 commission and publish a disparity and availability
4090	4090	24 study that measures the presence and impact of
4091	4091	25 discrimination on minority businesses and workers in
4092	4092	26 Illinois' clean energy economy. The Agency may hire
4093	4093
4094	4094
4095	4095
4096	4096
4097	4097
4098	4098	SB2289 - 113 - LRB104 06374 AAS 16410 b
4099	4099
4100	4100
4101	4101	SB2289- 114 -LRB104 06374 AAS 16410 b SB2289 - 114 - LRB104 06374 AAS 16410 b
4102	4102	SB2289 - 114 - LRB104 06374 AAS 16410 b
4103	4103	1 consultants and experts to conduct the disparity and
4104	4104	2 availability study, with the retention of those
4105	4105	3 consultants and experts exempt from the requirements
4106	4106	4 of Section 20-10 of the Illinois Procurement Code. The
4107	4107	5 Illinois Power Agency shall forward a copy of its
4108	4108	6 findings and recommendations to the Governor, the
4109	4109	7 General Assembly, and the Illinois Commerce
4110	4110	8 Commission. If the disparity and availability study
4111	4111	9 establishes a strong basis in evidence that there is
4112	4112	10 discrimination in Illinois' clean energy economy, the
4113	4113	11 Agency, Department of Commerce and Economic
4114	4114	12 Opportunity, Department of Labor, Department of
4115	4115	13 Corrections, and other appropriate agencies shall take
4116	4116	14 appropriate remedial actions, including race-conscious
4117	4117	15 remedial actions as consistent with State and federal
4118	4118	16 law, to effectively remedy this discrimination. Such
4119	4119	17 remedies may include modification of the equity
4120	4120	18 accountability system as described in subsection
4121	4121	19 (c-10).
4122	4122	20 (c-20) Program data collection.
4123	4123	21 (1) Purpose. Data collection, data analysis, and
4124	4124	22 reporting are critical to ensure that the benefits of the
4125	4125	23 clean energy economy provided to Illinois residents and
4126	4126	24 businesses are equitably distributed across the State. The
4127	4127	25 Agency shall collect data from program applicants in order
4128	4128	26 to track and improve equitable distribution of benefits
4129	4129
4130	4130
4131	4131
4132	4132
4133	4133
4134	4134	SB2289 - 114 - LRB104 06374 AAS 16410 b
4135	4135
4136	4136
4137	4137	SB2289- 115 -LRB104 06374 AAS 16410 b SB2289 - 115 - LRB104 06374 AAS 16410 b
4138	4138	SB2289 - 115 - LRB104 06374 AAS 16410 b
4139	4139	1 across Illinois communities for all procurements the
4140	4140	2 Agency conducts. The Agency shall use this data to, among
4141	4141	3 other things, measure any potential impact of racial
4142	4142	4 discrimination on the distribution of benefits and provide
4143	4143	5 information necessary to correct any discrimination
4144	4144	6 through methods consistent with State and federal law.
4145	4145	7 (2) Agency collection of program data. The Agency
4146	4146	8 shall collect demographic and geographic data for each
4147	4147	9 entity awarded contracts under any Agency-administered
4148	4148	10 program.
4149	4149	11 (3) Required information to be collected. The Agency
4150	4150	12 shall collect the following information from applicants
4151	4151	13 and program participants where applicable:
4152	4152	14 (A) demographic information, including racial or
4153	4153	15 ethnic identity for real persons employed, contracted,
4154	4154	16 or subcontracted through the program and owners of
4155	4155	17 businesses or entities that apply to receive renewable
4156	4156	18 energy credits from the Agency;
4157	4157	19 (B) geographic location of the residency of real
4158	4158	20 persons employed, contracted, or subcontracted through
4159	4159	21 the program and geographic location of the
4160	4160	22 headquarters of the business or entity that applies to
4161	4161	23 receive renewable energy credits from the Agency; and
4162	4162	24 (C) any other information the Agency determines is
4163	4163	25 necessary for the purpose of achieving the purpose of
4164	4164	26 this subsection.
4165	4165
4166	4166
4167	4167
4168	4168
4169	4169
4170	4170	SB2289 - 115 - LRB104 06374 AAS 16410 b
4171	4171
4172	4172
4173	4173	SB2289- 116 -LRB104 06374 AAS 16410 b SB2289 - 116 - LRB104 06374 AAS 16410 b
4174	4174	SB2289 - 116 - LRB104 06374 AAS 16410 b
4175	4175	1 (4) Publication of collected information. The Agency
4176	4176	2 shall publish, at least annually, information on the
4177	4177	3 demographics of program participants on an aggregate
4178	4178	4 basis.
4179	4179	5 (5) Nothing in this subsection shall be interpreted to
4180	4180	6 limit the authority of the Agency, or other agency or
4181	4181	7 department of the State, to require or collect demographic
4182	4182	8 information from applicants of other State programs.
4183	4183	9 (c-25) Energy Workforce Equity Database.
4184	4184	10 (1) The Agency, in consultation with the Department of
4185	4185	11 Commerce and Economic Opportunity, shall create an Energy
4186	4186	12 Workforce Equity Database, and may contract with a third
4187	4187	13 party to do so ("database program administrator"). If the
4188	4188	14 Department decides to contract with a third party, that
4189	4189	15 third party shall be exempt from the requirements of
4190	4190	16 Section 20-10 of the Illinois Procurement Code. The Energy
4191	4191	17 Workforce Equity Database shall be a searchable database
4192	4192	18 of suppliers, vendors, and subcontractors for clean energy
4193	4193	19 industries that is:
4194	4194	20 (A) publicly accessible;
4195	4195	21 (B) easy for people to find and use;
4196	4196	22 (C) organized by company specialty or field;
4197	4197	23 (D) region-specific; and
4198	4198	24 (E) populated with information including, but not
4199	4199	25 limited to, contacts for suppliers, vendors, or
4200	4200	26 subcontractors who are minority and women-owned
4201	4201
4202	4202
4203	4203
4204	4204
4205	4205
4206	4206	SB2289 - 116 - LRB104 06374 AAS 16410 b
4207	4207
4208	4208
4209	4209	SB2289- 117 -LRB104 06374 AAS 16410 b SB2289 - 117 - LRB104 06374 AAS 16410 b
4210	4210	SB2289 - 117 - LRB104 06374 AAS 16410 b
4211	4211	1 business enterprise certified or who participate or
4212	4212	2 have participated in any of the programs described in
4213	4213	3 this Act.
4214	4214	4 (2) The Agency shall create an easily accessible,
4215	4215	5 public facing online tool using the database information
4216	4216	6 that includes, at a minimum, the following:
4217	4217	7 (A) a map of environmental justice and equity
4218	4218	8 investment eligible communities;
4219	4219	9 (B) job postings and recruiting opportunities;
4220	4220	10 (C) a means by which recruiting clean energy
4221	4221	11 companies can find and interact with current or former
4222	4222	12 participants of clean energy workforce training
4223	4223	13 programs;
4224	4224	14 (D) information on workforce training service
4225	4225	15 providers and training opportunities available to
4226	4226	16 prospective workers;
4227	4227	17 (E) renewable energy company diversity reporting;
4228	4228	18 (F) a list of equity eligible contractors with
4229	4229	19 their contact information, types of work performed,
4230	4230	20 and locations worked in;
4231	4231	21 (G) reporting on outcomes of the programs
4232	4232	22 described in the workforce programs of the Energy
4233	4233	23 Transition Act, including information such as, but not
4234	4234	24 limited to, retention rate, graduation rate, and
4235	4235	25 placement rates of trainees; and
4236	4236	26 (H) information about the Jobs and Environmental
4237	4237
4238	4238
4239	4239
4240	4240
4241	4241
4242	4242	SB2289 - 117 - LRB104 06374 AAS 16410 b
4243	4243
4244	4244
4245	4245	SB2289- 118 -LRB104 06374 AAS 16410 b SB2289 - 118 - LRB104 06374 AAS 16410 b
4246	4246	SB2289 - 118 - LRB104 06374 AAS 16410 b
4247	4247	1 Justice Grant Program, the Clean Energy Jobs and
4248	4248	2 Justice Fund, and other sources of capital.
4249	4249	3 (3) The Agency shall ensure the database is regularly
4250	4250	4 updated to ensure information is current and shall
4251	4251	5 coordinate with the Department of Commerce and Economic
4252	4252	6 Opportunity to ensure that it includes information on
4253	4253	7 individuals and entities that are or have participated in
4254	4254	8 the Clean Jobs Workforce Network Program, Clean Energy
4255	4255	9 Contractor Incubator Program, Returning Residents Clean
4256	4256	10 Jobs Training Program, or Clean Energy Primes Contractor
4257	4257	11 Accelerator Program.
4258	4258	12 (c-30) Enforcement of minimum equity standards. All
4259	4259	13 entities seeking renewable energy credits must submit an
4260	4260	14 annual report to demonstrate compliance with each of the
4261	4261	15 equity commitments required under subsection (c-10). If the
4262	4262	16 Agency concludes the entity has not met or maintained its
4263	4263	17 minimum equity standards required under the applicable
4264	4264	18 subparagraphs under subsection (c-10), the Agency shall deny
4265	4265	19 the entity's ability to participate in procurement programs in
4266	4266	20 subsection (c), including by withholding approved vendor or
4267	4267	21 designee status. The Agency may require the entity to enter
4268	4268	22 into a corrective action plan. An entity that is not
4269	4269	23 recertified for failing to meet required equity actions in
4270	4270	24 subparagraph (c-10) may reapply once they have a corrective
4271	4271	25 action plan and achieve compliance with the minimum equity
4272	4272	26 standards.
4273	4273
4274	4274
4275	4275
4276	4276
4277	4277
4278	4278	SB2289 - 118 - LRB104 06374 AAS 16410 b
4279	4279
4280	4280
4281	4281	SB2289- 119 -LRB104 06374 AAS 16410 b SB2289 - 119 - LRB104 06374 AAS 16410 b
4282	4282	SB2289 - 119 - LRB104 06374 AAS 16410 b
4283	4283	1 (d) Clean coal portfolio standard.
4284	4284	2 (1) The procurement plans shall include electricity
4285	4285	3 generated using clean coal. Each utility shall enter into
4286	4286	4 one or more sourcing agreements with the initial clean
4287	4287	5 coal facility, as provided in paragraph (3) of this
4288	4288	6 subsection (d), covering electricity generated by the
4289	4289	7 initial clean coal facility representing at least 5% of
4290	4290	8 each utility's total supply to serve the load of eligible
4291	4291	9 retail customers in 2015 and each year thereafter, as
4292	4292	10 described in paragraph (3) of this subsection (d), subject
4293	4293	11 to the limits specified in paragraph (2) of this
4294	4294	12 subsection (d). It is the goal of the State that by January
4295	4295	13 1, 2025, 25% of the electricity used in the State shall be
4296	4296	14 generated by cost-effective clean coal facilities. For
4297	4297	15 purposes of this subsection (d), "cost-effective" means
4298	4298	16 that the expenditures pursuant to such sourcing agreements
4299	4299	17 do not cause the limit stated in paragraph (2) of this
4300	4300	18 subsection (d) to be exceeded and do not exceed cost-based
4301	4301	19 benchmarks, which shall be developed to assess all
4302	4302	20 expenditures pursuant to such sourcing agreements covering
4303	4303	21 electricity generated by clean coal facilities, other than
4304	4304	22 the initial clean coal facility, by the procurement
4305	4305	23 administrator, in consultation with the Commission staff,
4306	4306	24 Agency staff, and the procurement monitor and shall be
4307	4307	25 subject to Commission review and approval.
4308	4308	26 A utility party to a sourcing agreement shall
4309	4309
4310	4310
4311	4311
4312	4312
4313	4313
4314	4314	SB2289 - 119 - LRB104 06374 AAS 16410 b
4315	4315
4316	4316
4317	4317	SB2289- 120 -LRB104 06374 AAS 16410 b SB2289 - 120 - LRB104 06374 AAS 16410 b
4318	4318	SB2289 - 120 - LRB104 06374 AAS 16410 b
4319	4319	1 immediately retire any emission credits that it receives
4320	4320	2 in connection with the electricity covered by such
4321	4321	3 agreement.
4322	4322	4 Utilities shall maintain adequate records documenting
4323	4323	5 the purchases under the sourcing agreement to comply with
4324	4324	6 this subsection (d) and shall file an accounting with the
4325	4325	7 load forecast that must be filed with the Agency by July 15
4326	4326	8 of each year, in accordance with subsection (d) of Section
4327	4327	9 16-111.5 of the Public Utilities Act.
4328	4328	10 A utility shall be deemed to have complied with the
4329	4329	11 clean coal portfolio standard specified in this subsection
4330	4330	12 (d) if the utility enters into a sourcing agreement as
4331	4331	13 required by this subsection (d).
4332	4332	14 (2) For purposes of this subsection (d), the required
4333	4333	15 execution of sourcing agreements with the initial clean
4334	4334	16 coal facility for a particular year shall be measured as a
4335	4335	17 percentage of the actual amount of electricity
4336	4336	18 (megawatt-hours) supplied by the electric utility to
4337	4337	19 eligible retail customers in the planning year ending
4338	4338	20 immediately prior to the agreement's execution. For
4339	4339	21 purposes of this subsection (d), the amount paid per
4340	4340	22 kilowatthour means the total amount paid for electric
4341	4341	23 service expressed on a per kilowatthour basis. For
4342	4342	24 purposes of this subsection (d), the total amount paid for
4343	4343	25 electric service includes without limitation amounts paid
4344	4344	26 for supply, transmission, distribution, surcharges and
4345	4345
4346	4346
4347	4347
4348	4348
4349	4349
4350	4350	SB2289 - 120 - LRB104 06374 AAS 16410 b
4351	4351
4352	4352
4353	4353	SB2289- 121 -LRB104 06374 AAS 16410 b SB2289 - 121 - LRB104 06374 AAS 16410 b
4354	4354	SB2289 - 121 - LRB104 06374 AAS 16410 b
4355	4355	1 add-on taxes.
4356	4356	2 Notwithstanding the requirements of this subsection
4357	4357	3 (d), the total amount paid under sourcing agreements with
4358	4358	4 clean coal facilities pursuant to the procurement plan for
4359	4359	5 any given year shall be reduced by an amount necessary to
4360	4360	6 limit the annual estimated average net increase due to the
4361	4361	7 costs of these resources included in the amounts paid by
4362	4362	8 eligible retail customers in connection with electric
4363	4363	9 service to:
4364	4364	10 (A) in 2010, no more than 0.5% of the amount paid
4365	4365	11 per kilowatthour by those customers during the year
4366	4366	12 ending May 31, 2009;
4367	4367	13 (B) in 2011, the greater of an additional 0.5% of
4368	4368	14 the amount paid per kilowatthour by those customers
4369	4369	15 during the year ending May 31, 2010 or 1% of the amount
4370	4370	16 paid per kilowatthour by those customers during the
4371	4371	17 year ending May 31, 2009;
4372	4372	18 (C) in 2012, the greater of an additional 0.5% of
4373	4373	19 the amount paid per kilowatthour by those customers
4374	4374	20 during the year ending May 31, 2011 or 1.5% of the
4375	4375	21 amount paid per kilowatthour by those customers during
4376	4376	22 the year ending May 31, 2009;
4377	4377	23 (D) in 2013, the greater of an additional 0.5% of
4378	4378	24 the amount paid per kilowatthour by those customers
4379	4379	25 during the year ending May 31, 2012 or 2% of the amount
4380	4380	26 paid per kilowatthour by those customers during the
4381	4381
4382	4382
4383	4383
4384	4384
4385	4385
4386	4386	SB2289 - 121 - LRB104 06374 AAS 16410 b
4387	4387
4388	4388
4389	4389	SB2289- 122 -LRB104 06374 AAS 16410 b SB2289 - 122 - LRB104 06374 AAS 16410 b
4390	4390	SB2289 - 122 - LRB104 06374 AAS 16410 b
4391	4391	1 year ending May 31, 2009; and
4392	4392	2 (E) thereafter, the total amount paid under
4393	4393	3 sourcing agreements with clean coal facilities
4394	4394	4 pursuant to the procurement plan for any single year
4395	4395	5 shall be reduced by an amount necessary to limit the
4396	4396	6 estimated average net increase due to the cost of
4397	4397	7 these resources included in the amounts paid by
4398	4398	8 eligible retail customers in connection with electric
4399	4399	9 service to no more than the greater of (i) 2.015% of
4400	4400	10 the amount paid per kilowatthour by those customers
4401	4401	11 during the year ending May 31, 2009 or (ii) the
4402	4402	12 incremental amount per kilowatthour paid for these
4403	4403	13 resources in 2013. These requirements may be altered
4404	4404	14 only as provided by statute.
4405	4405	15 No later than June 30, 2015, the Commission shall
4406	4406	16 review the limitation on the total amount paid under
4407	4407	17 sourcing agreements, if any, with clean coal facilities
4408	4408	18 pursuant to this subsection (d) and report to the General
4409	4409	19 Assembly its findings as to whether that limitation unduly
4410	4410	20 constrains the amount of electricity generated by
4411	4411	21 cost-effective clean coal facilities that is covered by
4412	4412	22 sourcing agreements.
4413	4413	23 (3) Initial clean coal facility. In order to promote
4414	4414	24 development of clean coal facilities in Illinois, each
4415	4415	25 electric utility subject to this Section shall execute a
4416	4416	26 sourcing agreement to source electricity from a proposed
4417	4417
4418	4418
4419	4419
4420	4420
4421	4421
4422	4422	SB2289 - 122 - LRB104 06374 AAS 16410 b
4423	4423
4424	4424
4425	4425	SB2289- 123 -LRB104 06374 AAS 16410 b SB2289 - 123 - LRB104 06374 AAS 16410 b
4426	4426	SB2289 - 123 - LRB104 06374 AAS 16410 b
4427	4427	1 clean coal facility in Illinois (the "initial clean coal
4428	4428	2 facility") that will have a nameplate capacity of at least
4429	4429	3 500 MW when commercial operation commences, that has a
4430	4430	4 final Clean Air Act permit on June 1, 2009 (the effective
4431	4431	5 date of Public Act 95-1027), and that will meet the
4432	4432	6 definition of clean coal facility in Section 1-10 of this
4433	4433	7 Act when commercial operation commences. The sourcing
4434	4434	8 agreements with this initial clean coal facility shall be
4435	4435	9 subject to both approval of the initial clean coal
4436	4436	10 facility by the General Assembly and satisfaction of the
4437	4437	11 requirements of paragraph (4) of this subsection (d) and
4438	4438	12 shall be executed within 90 days after any such approval
4439	4439	13 by the General Assembly. The Agency and the Commission
4440	4440	14 shall have authority to inspect all books and records
4441	4441	15 associated with the initial clean coal facility during the
4442	4442	16 term of such a sourcing agreement. A utility's sourcing
4443	4443	17 agreement for electricity produced by the initial clean
4444	4444	18 coal facility shall include:
4445	4445	19 (A) a formula contractual price (the "contract
4446	4446	20 price") approved pursuant to paragraph (4) of this
4447	4447	21 subsection (d), which shall:
4448	4448	22 (i) be determined using a cost of service
4449	4449	23 methodology employing either a level or deferred
4450	4450	24 capital recovery component, based on a capital
4451	4451	25 structure consisting of 45% equity and 55% debt,
4452	4452	26 and a return on equity as may be approved by the
4453	4453
4454	4454
4455	4455
4456	4456
4457	4457
4458	4458	SB2289 - 123 - LRB104 06374 AAS 16410 b
4459	4459
4460	4460
4461	4461	SB2289- 124 -LRB104 06374 AAS 16410 b SB2289 - 124 - LRB104 06374 AAS 16410 b
4462	4462	SB2289 - 124 - LRB104 06374 AAS 16410 b
4463	4463	1 Federal Energy Regulatory Commission, which in any
4464	4464	2 case may not exceed the lower of 11.5% or the rate
4465	4465	3 of return approved by the General Assembly
4466	4466	4 pursuant to paragraph (4) of this subsection (d);
4467	4467	5 and
4468	4468	6 (ii) provide that all miscellaneous net
4469	4469	7 revenue, including but not limited to net revenue
4470	4470	8 from the sale of emission allowances, if any,
4471	4471	9 substitute natural gas, if any, grants or other
4472	4472	10 support provided by the State of Illinois or the
4473	4473	11 United States Government, firm transmission
4474	4474	12 rights, if any, by-products produced by the
4475	4475	13 facility, energy or capacity derived from the
4476	4476	14 facility and not covered by a sourcing agreement
4477	4477	15 pursuant to paragraph (3) of this subsection (d)
4478	4478	16 or item (5) of subsection (d) of Section 16-115 of
4479	4479	17 the Public Utilities Act, whether generated from
4480	4480	18 the synthesis gas derived from coal, from SNG, or
4481	4481	19 from natural gas, shall be credited against the
4482	4482	20 revenue requirement for this initial clean coal
4483	4483	21 facility;
4484	4484	22 (B) power purchase provisions, which shall:
4485	4485	23 (i) provide that the utility party to such
4486	4486	24 sourcing agreement shall pay the contract price
4487	4487	25 for electricity delivered under such sourcing
4488	4488	26 agreement;
4489	4489
4490	4490
4491	4491
4492	4492
4493	4493
4494	4494	SB2289 - 124 - LRB104 06374 AAS 16410 b
4495	4495
4496	4496
4497	4497	SB2289- 125 -LRB104 06374 AAS 16410 b SB2289 - 125 - LRB104 06374 AAS 16410 b
4498	4498	SB2289 - 125 - LRB104 06374 AAS 16410 b
4499	4499	1 (ii) require delivery of electricity to the
4500	4500	2 regional transmission organization market of the
4501	4501	3 utility that is party to such sourcing agreement;
4502	4502	4 (iii) require the utility party to such
4503	4503	5 sourcing agreement to buy from the initial clean
4504	4504	6 coal facility in each hour an amount of energy
4505	4505	7 equal to all clean coal energy made available from
4506	4506	8 the initial clean coal facility during such hour
4507	4507	9 times a fraction, the numerator of which is such
4508	4508	10 utility's retail market sales of electricity
4509	4509	11 (expressed in kilowatthours sold) in the State
4510	4510	12 during the prior calendar month and the
4511	4511	13 denominator of which is the total retail market
4512	4512	14 sales of electricity (expressed in kilowatthours
4513	4513	15 sold) in the State by utilities during such prior
4514	4514	16 month and the sales of electricity (expressed in
4515	4515	17 kilowatthours sold) in the State by alternative
4516	4516	18 retail electric suppliers during such prior month
4517	4517	19 that are subject to the requirements of this
4518	4518	20 subsection (d) and paragraph (5) of subsection (d)
4519	4519	21 of Section 16-115 of the Public Utilities Act,
4520	4520	22 provided that the amount purchased by the utility
4521	4521	23 in any year will be limited by paragraph (2) of
4522	4522	24 this subsection (d); and
4523	4523	25 (iv) be considered pre-existing contracts in
4524	4524	26 such utility's procurement plans for eligible
4525	4525
4526	4526
4527	4527
4528	4528
4529	4529
4530	4530	SB2289 - 125 - LRB104 06374 AAS 16410 b
4531	4531
4532	4532
4533	4533	SB2289- 126 -LRB104 06374 AAS 16410 b SB2289 - 126 - LRB104 06374 AAS 16410 b
4534	4534	SB2289 - 126 - LRB104 06374 AAS 16410 b
4535	4535	1 retail customers;
4536	4536	2 (C) contract for differences provisions, which
4537	4537	3 shall:
4538	4538	4 (i) require the utility party to such sourcing
4539	4539	5 agreement to contract with the initial clean coal
4540	4540	6 facility in each hour with respect to an amount of
4541	4541	7 energy equal to all clean coal energy made
4542	4542	8 available from the initial clean coal facility
4543	4543	9 during such hour times a fraction, the numerator
4544	4544	10 of which is such utility's retail market sales of
4545	4545	11 electricity (expressed in kilowatthours sold) in
4546	4546	12 the utility's service territory in the State
4547	4547	13 during the prior calendar month and the
4548	4548	14 denominator of which is the total retail market
4549	4549	15 sales of electricity (expressed in kilowatthours
4550	4550	16 sold) in the State by utilities during such prior
4551	4551	17 month and the sales of electricity (expressed in
4552	4552	18 kilowatthours sold) in the State by alternative
4553	4553	19 retail electric suppliers during such prior month
4554	4554	20 that are subject to the requirements of this
4555	4555	21 subsection (d) and paragraph (5) of subsection (d)
4556	4556	22 of Section 16-115 of the Public Utilities Act,
4557	4557	23 provided that the amount paid by the utility in
4558	4558	24 any year will be limited by paragraph (2) of this
4559	4559	25 subsection (d);
4560	4560	26 (ii) provide that the utility's payment
4561	4561
4562	4562
4563	4563
4564	4564
4565	4565
4566	4566	SB2289 - 126 - LRB104 06374 AAS 16410 b
4567	4567
4568	4568
4569	4569	SB2289- 127 -LRB104 06374 AAS 16410 b SB2289 - 127 - LRB104 06374 AAS 16410 b
4570	4570	SB2289 - 127 - LRB104 06374 AAS 16410 b
4571	4571	1 obligation in respect of the quantity of
4572	4572	2 electricity determined pursuant to the preceding
4573	4573	3 clause (i) shall be limited to an amount equal to
4574	4574	4 (1) the difference between the contract price
4575	4575	5 determined pursuant to subparagraph (A) of
4576	4576	6 paragraph (3) of this subsection (d) and the
4577	4577	7 day-ahead price for electricity delivered to the
4578	4578	8 regional transmission organization market of the
4579	4579	9 utility that is party to such sourcing agreement
4580	4580	10 (or any successor delivery point at which such
4581	4581	11 utility's supply obligations are financially
4582	4582	12 settled on an hourly basis) (the "reference
4583	4583	13 price") on the day preceding the day on which the
4584	4584	14 electricity is delivered to the initial clean coal
4585	4585	15 facility busbar, multiplied by (2) the quantity of
4586	4586	16 electricity determined pursuant to the preceding
4587	4587	17 clause (i); and
4588	4588	18 (iii) not require the utility to take physical
4589	4589	19 delivery of the electricity produced by the
4590	4590	20 facility;
4591	4591	21 (D) general provisions, which shall:
4592	4592	22 (i) specify a term of no more than 30 years,
4593	4593	23 commencing on the commercial operation date of the
4594	4594	24 facility;
4595	4595	25 (ii) provide that utilities shall maintain
4596	4596	26 adequate records documenting purchases under the
4597	4597
4598	4598
4599	4599
4600	4600
4601	4601
4602	4602	SB2289 - 127 - LRB104 06374 AAS 16410 b
4603	4603
4604	4604
4605	4605	SB2289- 128 -LRB104 06374 AAS 16410 b SB2289 - 128 - LRB104 06374 AAS 16410 b
4606	4606	SB2289 - 128 - LRB104 06374 AAS 16410 b
4607	4607	1 sourcing agreements entered into to comply with
4608	4608	2 this subsection (d) and shall file an accounting
4609	4609	3 with the load forecast that must be filed with the
4610	4610	4 Agency by July 15 of each year, in accordance with
4611	4611	5 subsection (d) of Section 16-111.5 of the Public
4612	4612	6 Utilities Act;
4613	4613	7 (iii) provide that all costs associated with
4614	4614	8 the initial clean coal facility will be
4615	4615	9 periodically reported to the Federal Energy
4616	4616	10 Regulatory Commission and to purchasers in
4617	4617	11 accordance with applicable laws governing
4618	4618	12 cost-based wholesale power contracts;
4619	4619	13 (iv) permit the Illinois Power Agency to
4620	4620	14 assume ownership of the initial clean coal
4621	4621	15 facility, without monetary consideration and
4622	4622	16 otherwise on reasonable terms acceptable to the
4623	4623	17 Agency, if the Agency so requests no less than 3
4624	4624	18 years prior to the end of the stated contract
4625	4625	19 term;
4626	4626	20 (v) require the owner of the initial clean
4627	4627	21 coal facility to provide documentation to the
4628	4628	22 Commission each year, starting in the facility's
4629	4629	23 first year of commercial operation, accurately
4630	4630	24 reporting the quantity of carbon emissions from
4631	4631	25 the facility that have been captured and
4632	4632	26 sequestered and report any quantities of carbon
4633	4633
4634	4634
4635	4635
4636	4636
4637	4637
4638	4638	SB2289 - 128 - LRB104 06374 AAS 16410 b
4639	4639
4640	4640
4641	4641	SB2289- 129 -LRB104 06374 AAS 16410 b SB2289 - 129 - LRB104 06374 AAS 16410 b
4642	4642	SB2289 - 129 - LRB104 06374 AAS 16410 b
4643	4643	1 released from the site or sites at which carbon
4644	4644	2 emissions were sequestered in prior years, based
4645	4645	3 on continuous monitoring of such sites. If, in any
4646	4646	4 year after the first year of commercial operation,
4647	4647	5 the owner of the facility fails to demonstrate
4648	4648	6 that the initial clean coal facility captured and
4649	4649	7 sequestered at least 50% of the total carbon
4650	4650	8 emissions that the facility would otherwise emit
4651	4651	9 or that sequestration of emissions from prior
4652	4652	10 years has failed, resulting in the release of
4653	4653	11 carbon dioxide into the atmosphere, the owner of
4654	4654	12 the facility must offset excess emissions. Any
4655	4655	13 such carbon offsets must be permanent, additional,
4656	4656	14 verifiable, real, located within the State of
4657	4657	15 Illinois, and legally and practicably enforceable.
4658	4658	16 The cost of such offsets for the facility that are
4659	4659	17 not recoverable shall not exceed $15 million in
4660	4660	18 any given year. No costs of any such purchases of
4661	4661	19 carbon offsets may be recovered from a utility or
4662	4662	20 its customers. All carbon offsets purchased for
4663	4663	21 this purpose and any carbon emission credits
4664	4664	22 associated with sequestration of carbon from the
4665	4665	23 facility must be permanently retired. The initial
4666	4666	24 clean coal facility shall not forfeit its
4667	4667	25 designation as a clean coal facility if the
4668	4668	26 facility fails to fully comply with the applicable
4669	4669
4670	4670
4671	4671
4672	4672
4673	4673
4674	4674	SB2289 - 129 - LRB104 06374 AAS 16410 b
4675	4675
4676	4676
4677	4677	SB2289- 130 -LRB104 06374 AAS 16410 b SB2289 - 130 - LRB104 06374 AAS 16410 b
4678	4678	SB2289 - 130 - LRB104 06374 AAS 16410 b
4679	4679	1 carbon sequestration requirements in any given
4680	4680	2 year, provided the requisite offsets are
4681	4681	3 purchased. However, the Attorney General, on
4682	4682	4 behalf of the People of the State of Illinois, may
4683	4683	5 specifically enforce the facility's sequestration
4684	4684	6 requirement and the other terms of this contract
4685	4685	7 provision. Compliance with the sequestration
4686	4686	8 requirements and offset purchase requirements
4687	4687	9 specified in paragraph (3) of this subsection (d)
4688	4688	10 shall be reviewed annually by an independent
4689	4689	11 expert retained by the owner of the initial clean
4690	4690	12 coal facility, with the advance written approval
4691	4691	13 of the Attorney General. The Commission may, in
4692	4692	14 the course of the review specified in item (vii),
4693	4693	15 reduce the allowable return on equity for the
4694	4694	16 facility if the facility willfully fails to comply
4695	4695	17 with the carbon capture and sequestration
4696	4696	18 requirements set forth in this item (v);
4697	4697	19 (vi) include limits on, and accordingly
4698	4698	20 provide for modification of, the amount the
4699	4699	21 utility is required to source under the sourcing
4700	4700	22 agreement consistent with paragraph (2) of this
4701	4701	23 subsection (d);
4702	4702	24 (vii) require Commission review: (1) to
4703	4703	25 determine the justness, reasonableness, and
4704	4704	26 prudence of the inputs to the formula referenced
4705	4705
4706	4706
4707	4707
4708	4708
4709	4709
4710	4710	SB2289 - 130 - LRB104 06374 AAS 16410 b
4711	4711
4712	4712
4713	4713	SB2289- 131 -LRB104 06374 AAS 16410 b SB2289 - 131 - LRB104 06374 AAS 16410 b
4714	4714	SB2289 - 131 - LRB104 06374 AAS 16410 b
4715	4715	1 in subparagraphs (A)(i) through (A)(iii) of
4716	4716	2 paragraph (3) of this subsection (d), prior to an
4717	4717	3 adjustment in those inputs including, without
4718	4718	4 limitation, the capital structure and return on
4719	4719	5 equity, fuel costs, and other operations and
4720	4720	6 maintenance costs and (2) to approve the costs to
4721	4721	7 be passed through to customers under the sourcing
4722	4722	8 agreement by which the utility satisfies its
4723	4723	9 statutory obligations. Commission review shall
4724	4724	10 occur no less than every 3 years, regardless of
4725	4725	11 whether any adjustments have been proposed, and
4726	4726	12 shall be completed within 9 months;
4727	4727	13 (viii) limit the utility's obligation to such
4728	4728	14 amount as the utility is allowed to recover
4729	4729	15 through tariffs filed with the Commission,
4730	4730	16 provided that neither the clean coal facility nor
4731	4731	17 the utility waives any right to assert federal
4732	4732	18 pre-emption or any other argument in response to a
4733	4733	19 purported disallowance of recovery costs;
4734	4734	20 (ix) limit the utility's or alternative retail
4735	4735	21 electric supplier's obligation to incur any
4736	4736	22 liability until such time as the facility is in
4737	4737	23 commercial operation and generating power and
4738	4738	24 energy and such power and energy is being
4739	4739	25 delivered to the facility busbar;
4740	4740	26 (x) provide that the owner or owners of the
4741	4741
4742	4742
4743	4743
4744	4744
4745	4745
4746	4746	SB2289 - 131 - LRB104 06374 AAS 16410 b
4747	4747
4748	4748
4749	4749	SB2289- 132 -LRB104 06374 AAS 16410 b SB2289 - 132 - LRB104 06374 AAS 16410 b
4750	4750	SB2289 - 132 - LRB104 06374 AAS 16410 b
4751	4751	1 initial clean coal facility, which is the
4752	4752	2 counterparty to such sourcing agreement, shall
4753	4753	3 have the right from time to time to elect whether
4754	4754	4 the obligations of the utility party thereto shall
4755	4755	5 be governed by the power purchase provisions or
4756	4756	6 the contract for differences provisions;
4757	4757	7 (xi) append documentation showing that the
4758	4758	8 formula rate and contract, insofar as they relate
4759	4759	9 to the power purchase provisions, have been
4760	4760	10 approved by the Federal Energy Regulatory
4761	4761	11 Commission pursuant to Section 205 of the Federal
4762	4762	12 Power Act;
4763	4763	13 (xii) provide that any changes to the terms of
4764	4764	14 the contract, insofar as such changes relate to
4765	4765	15 the power purchase provisions, are subject to
4766	4766	16 review under the public interest standard applied
4767	4767	17 by the Federal Energy Regulatory Commission
4768	4768	18 pursuant to Sections 205 and 206 of the Federal
4769	4769	19 Power Act; and
4770	4770	20 (xiii) conform with customary lender
4771	4771	21 requirements in power purchase agreements used as
4772	4772	22 the basis for financing non-utility generators.
4773	4773	23 (4) Effective date of sourcing agreements with the
4774	4774	24 initial clean coal facility. Any proposed sourcing
4775	4775	25 agreement with the initial clean coal facility shall not
4776	4776	26 become effective unless the following reports are prepared
4777	4777
4778	4778
4779	4779
4780	4780
4781	4781
4782	4782	SB2289 - 132 - LRB104 06374 AAS 16410 b
4783	4783
4784	4784
4785	4785	SB2289- 133 -LRB104 06374 AAS 16410 b SB2289 - 133 - LRB104 06374 AAS 16410 b
4786	4786	SB2289 - 133 - LRB104 06374 AAS 16410 b
4787	4787	1 and submitted and authorizations and approvals obtained:
4788	4788	2 (i) Facility cost report. The owner of the initial
4789	4789	3 clean coal facility shall submit to the Commission,
4790	4790	4 the Agency, and the General Assembly a front-end
4791	4791	5 engineering and design study, a facility cost report,
4792	4792	6 method of financing (including but not limited to
4793	4793	7 structure and associated costs), and an operating and
4794	4794	8 maintenance cost quote for the facility (collectively
4795	4795	9 "facility cost report"), which shall be prepared in
4796	4796	10 accordance with the requirements of this paragraph (4)
4797	4797	11 of subsection (d) of this Section, and shall provide
4798	4798	12 the Commission and the Agency access to the work
4799	4799	13 papers, relied upon documents, and any other backup
4800	4800	14 documentation related to the facility cost report.
4801	4801	15 (ii) Commission report. Within 6 months following
4802	4802	16 receipt of the facility cost report, the Commission,
4803	4803	17 in consultation with the Agency, shall submit a report
4804	4804	18 to the General Assembly setting forth its analysis of
4805	4805	19 the facility cost report. Such report shall include,
4806	4806	20 but not be limited to, a comparison of the costs
4807	4807	21 associated with electricity generated by the initial
4808	4808	22 clean coal facility to the costs associated with
4809	4809	23 electricity generated by other types of generation
4810	4810	24 facilities, an analysis of the rate impacts on
4811	4811	25 residential and small business customers over the life
4812	4812	26 of the sourcing agreements, and an analysis of the
4813	4813
4814	4814
4815	4815
4816	4816
4817	4817
4818	4818	SB2289 - 133 - LRB104 06374 AAS 16410 b
4819	4819
4820	4820
4821	4821	SB2289- 134 -LRB104 06374 AAS 16410 b SB2289 - 134 - LRB104 06374 AAS 16410 b
4822	4822	SB2289 - 134 - LRB104 06374 AAS 16410 b
4823	4823	1 likelihood that the initial clean coal facility will
4824	4824	2 commence commercial operation by and be delivering
4825	4825	3 power to the facility's busbar by 2016. To assist in
4826	4826	4 the preparation of its report, the Commission, in
4827	4827	5 consultation with the Agency, may hire one or more
4828	4828	6 experts or consultants, the costs of which shall be
4829	4829	7 paid for by the owner of the initial clean coal
4830	4830	8 facility. The Commission and Agency may begin the
4831	4831	9 process of selecting such experts or consultants prior
4832	4832	10 to receipt of the facility cost report.
4833	4833	11 (iii) General Assembly approval. The proposed
4834	4834	12 sourcing agreements shall not take effect unless,
4835	4835	13 based on the facility cost report and the Commission's
4836	4836	14 report, the General Assembly enacts authorizing
4837	4837	15 legislation approving (A) the projected price, stated
4838	4838	16 in cents per kilowatthour, to be charged for
4839	4839	17 electricity generated by the initial clean coal
4840	4840	18 facility, (B) the projected impact on residential and
4841	4841	19 small business customers' bills over the life of the
4842	4842	20 sourcing agreements, and (C) the maximum allowable
4843	4843	21 return on equity for the project; and
4844	4844	22 (iv) Commission review. If the General Assembly
4845	4845	23 enacts authorizing legislation pursuant to
4846	4846	24 subparagraph (iii) approving a sourcing agreement, the
4847	4847	25 Commission shall, within 90 days of such enactment,
4848	4848	26 complete a review of such sourcing agreement. During
4849	4849
4850	4850
4851	4851
4852	4852
4853	4853
4854	4854	SB2289 - 134 - LRB104 06374 AAS 16410 b
4855	4855
4856	4856
4857	4857	SB2289- 135 -LRB104 06374 AAS 16410 b SB2289 - 135 - LRB104 06374 AAS 16410 b
4858	4858	SB2289 - 135 - LRB104 06374 AAS 16410 b
4859	4859	1 such time period, the Commission shall implement any
4860	4860	2 directive of the General Assembly, resolve any
4861	4861	3 disputes between the parties to the sourcing agreement
4862	4862	4 concerning the terms of such agreement, approve the
4863	4863	5 form of such agreement, and issue an order finding
4864	4864	6 that the sourcing agreement is prudent and reasonable.
4865	4865	7 The facility cost report shall be prepared as follows:
4866	4866	8 (A) The facility cost report shall be prepared by
4867	4867	9 duly licensed engineering and construction firms
4868	4868	10 detailing the estimated capital costs payable to one
4869	4869	11 or more contractors or suppliers for the engineering,
4870	4870	12 procurement and construction of the components
4871	4871	13 comprising the initial clean coal facility and the
4872	4872	14 estimated costs of operation and maintenance of the
4873	4873	15 facility. The facility cost report shall include:
4874	4874	16 (i) an estimate of the capital cost of the
4875	4875	17 core plant based on one or more front end
4876	4876	18 engineering and design studies for the
4877	4877	19 gasification island and related facilities. The
4878	4878	20 core plant shall include all civil, structural,
4879	4879	21 mechanical, electrical, control, and safety
4880	4880	22 systems.
4881	4881	23 (ii) an estimate of the capital cost of the
4882	4882	24 balance of the plant, including any capital costs
4883	4883	25 associated with sequestration of carbon dioxide
4884	4884	26 emissions and all interconnects and interfaces
4885	4885
4886	4886
4887	4887
4888	4888
4889	4889
4890	4890	SB2289 - 135 - LRB104 06374 AAS 16410 b
4891	4891
4892	4892
4893	4893	SB2289- 136 -LRB104 06374 AAS 16410 b SB2289 - 136 - LRB104 06374 AAS 16410 b
4894	4894	SB2289 - 136 - LRB104 06374 AAS 16410 b
4895	4895	1 required to operate the facility, such as
4896	4896	2 transmission of electricity, construction or
4897	4897	3 backfeed power supply, pipelines to transport
4898	4898	4 substitute natural gas or carbon dioxide, potable
4899	4899	5 water supply, natural gas supply, water supply,
4900	4900	6 water discharge, landfill, access roads, and coal
4901	4901	7 delivery.
4902	4902	8 The quoted construction costs shall be expressed
4903	4903	9 in nominal dollars as of the date that the quote is
4904	4904	10 prepared and shall include capitalized financing costs
4905	4905	11 during construction, taxes, insurance, and other
4906	4906	12 owner's costs, and an assumed escalation in materials
4907	4907	13 and labor beyond the date as of which the construction
4908	4908	14 cost quote is expressed.
4909	4909	15 (B) The front end engineering and design study for
4910	4910	16 the gasification island and the cost study for the
4911	4911	17 balance of plant shall include sufficient design work
4912	4912	18 to permit quantification of major categories of
4913	4913	19 materials, commodities and labor hours, and receipt of
4914	4914	20 quotes from vendors of major equipment required to
4915	4915	21 construct and operate the clean coal facility.
4916	4916	22 (C) The facility cost report shall also include an
4917	4917	23 operating and maintenance cost quote that will provide
4918	4918	24 the estimated cost of delivered fuel, personnel,
4919	4919	25 maintenance contracts, chemicals, catalysts,
4920	4920	26 consumables, spares, and other fixed and variable
4921	4921
4922	4922
4923	4923
4924	4924
4925	4925
4926	4926	SB2289 - 136 - LRB104 06374 AAS 16410 b
4927	4927
4928	4928
4929	4929	SB2289- 137 -LRB104 06374 AAS 16410 b SB2289 - 137 - LRB104 06374 AAS 16410 b
4930	4930	SB2289 - 137 - LRB104 06374 AAS 16410 b
4931	4931	1 operations and maintenance costs. The delivered fuel
4932	4932	2 cost estimate will be provided by a recognized third
4933	4933	3 party expert or experts in the fuel and transportation
4934	4934	4 industries. The balance of the operating and
4935	4935	5 maintenance cost quote, excluding delivered fuel
4936	4936	6 costs, will be developed based on the inputs provided
4937	4937	7 by duly licensed engineering and construction firms
4938	4938	8 performing the construction cost quote, potential
4939	4939	9 vendors under long-term service agreements and plant
4940	4940	10 operating agreements, or recognized third party plant
4941	4941	11 operator or operators.
4942	4942	12 The operating and maintenance cost quote
4943	4943	13 (including the cost of the front end engineering and
4944	4944	14 design study) shall be expressed in nominal dollars as
4945	4945	15 of the date that the quote is prepared and shall
4946	4946	16 include taxes, insurance, and other owner's costs, and
4947	4947	17 an assumed escalation in materials and labor beyond
4948	4948	18 the date as of which the operating and maintenance
4949	4949	19 cost quote is expressed.
4950	4950	20 (D) The facility cost report shall also include an
4951	4951	21 analysis of the initial clean coal facility's ability
4952	4952	22 to deliver power and energy into the applicable
4953	4953	23 regional transmission organization markets and an
4954	4954	24 analysis of the expected capacity factor for the
4955	4955	25 initial clean coal facility.
4956	4956	26 (E) Amounts paid to third parties unrelated to the
4957	4957
4958	4958
4959	4959
4960	4960
4961	4961
4962	4962	SB2289 - 137 - LRB104 06374 AAS 16410 b
4963	4963
4964	4964
4965	4965	SB2289- 138 -LRB104 06374 AAS 16410 b SB2289 - 138 - LRB104 06374 AAS 16410 b
4966	4966	SB2289 - 138 - LRB104 06374 AAS 16410 b
4967	4967	1 owner or owners of the initial clean coal facility to
4968	4968	2 prepare the core plant construction cost quote,
4969	4969	3 including the front end engineering and design study,
4970	4970	4 and the operating and maintenance cost quote will be
4971	4971	5 reimbursed through Coal Development Bonds.
4972	4972	6 (5) Re-powering and retrofitting coal-fired power
4973	4973	7 plants previously owned by Illinois utilities to qualify
4974	4974	8 as clean coal facilities. During the 2009 procurement
4975	4975	9 planning process and thereafter, the Agency and the
4976	4976	10 Commission shall consider sourcing agreements covering
4977	4977	11 electricity generated by power plants that were previously
4978	4978	12 owned by Illinois utilities and that have been or will be
4979	4979	13 converted into clean coal facilities, as defined by
4980	4980	14 Section 1-10 of this Act. Pursuant to such procurement
4981	4981	15 planning process, the owners of such facilities may
4982	4982	16 propose to the Agency sourcing agreements with utilities
4983	4983	17 and alternative retail electric suppliers required to
4984	4984	18 comply with subsection (d) of this Section and item (5) of
4985	4985	19 subsection (d) of Section 16-115 of the Public Utilities
4986	4986	20 Act, covering electricity generated by such facilities. In
4987	4987	21 the case of sourcing agreements that are power purchase
4988	4988	22 agreements, the contract price for electricity sales shall
4989	4989	23 be established on a cost of service basis. In the case of
4990	4990	24 sourcing agreements that are contracts for differences,
4991	4991	25 the contract price from which the reference price is
4992	4992	26 subtracted shall be established on a cost of service
4993	4993
4994	4994
4995	4995
4996	4996
4997	4997
4998	4998	SB2289 - 138 - LRB104 06374 AAS 16410 b
4999	4999
5000	5000
5001	5001	SB2289- 139 -LRB104 06374 AAS 16410 b SB2289 - 139 - LRB104 06374 AAS 16410 b
5002	5002	SB2289 - 139 - LRB104 06374 AAS 16410 b
5003	5003	1 basis. The Agency and the Commission may approve any such
5004	5004	2 utility sourcing agreements that do not exceed cost-based
5005	5005	3 benchmarks developed by the procurement administrator, in
5006	5006	4 consultation with the Commission staff, Agency staff and
5007	5007	5 the procurement monitor, subject to Commission review and
5008	5008	6 approval. The Commission shall have authority to inspect
5009	5009	7 all books and records associated with these clean coal
5010	5010	8 facilities during the term of any such contract.
5011	5011	9 (6) Costs incurred under this subsection (d) or
5012	5012	10 pursuant to a contract entered into under this subsection
5013	5013	11 (d) shall be deemed prudently incurred and reasonable in
5014	5014	12 amount and the electric utility shall be entitled to full
5015	5015	13 cost recovery pursuant to the tariffs filed with the
5016	5016	14 Commission.
5017	5017	15 (d-5) Zero emission standard.
5018	5018	16 (1) Beginning with the delivery year commencing on
5019	5019	17 June 1, 2017, the Agency shall, for electric utilities
5020	5020	18 that serve at least 100,000 retail customers in this
5021	5021	19 State, procure contracts with zero emission facilities
5022	5022	20 that are reasonably capable of generating cost-effective
5023	5023	21 zero emission credits in an amount approximately equal to
5024	5024	22 16% of the actual amount of electricity delivered by each
5025	5025	23 electric utility to retail customers in the State during
5026	5026	24 calendar year 2014. For an electric utility serving fewer
5027	5027	25 than 100,000 retail customers in this State that
5028	5028	26 requested, under Section 16-111.5 of the Public Utilities
5029	5029
5030	5030
5031	5031
5032	5032
5033	5033
5034	5034	SB2289 - 139 - LRB104 06374 AAS 16410 b
5035	5035
5036	5036
5037	5037	SB2289- 140 -LRB104 06374 AAS 16410 b SB2289 - 140 - LRB104 06374 AAS 16410 b
5038	5038	SB2289 - 140 - LRB104 06374 AAS 16410 b
5039	5039	1 Act, that the Agency procure power and energy for all or a
5040	5040	2 portion of the utility's Illinois load for the delivery
5041	5041	3 year commencing June 1, 2016, the Agency shall procure
5042	5042	4 contracts with zero emission facilities that are
5043	5043	5 reasonably capable of generating cost-effective zero
5044	5044	6 emission credits in an amount approximately equal to 16%
5045	5045	7 of the portion of power and energy to be procured by the
5046	5046	8 Agency for the utility. The duration of the contracts
5047	5047	9 procured under this subsection (d-5) shall be for a term
5048	5048	10 of 10 years ending May 31, 2027. The quantity of zero
5049	5049	11 emission credits to be procured under the contracts shall
5050	5050	12 be all of the zero emission credits generated by the zero
5051	5051	13 emission facility in each delivery year; however, if the
5052	5052	14 zero emission facility is owned by more than one entity,
5053	5053	15 then the quantity of zero emission credits to be procured
5054	5054	16 under the contracts shall be the amount of zero emission
5055	5055	17 credits that are generated from the portion of the zero
5056	5056	18 emission facility that is owned by the winning supplier.
5057	5057	19 The 16% value identified in this paragraph (1) is the
5058	5058	20 average of the percentage targets in subparagraph (B) of
5059	5059	21 paragraph (1) of subsection (c) of this Section for the 5
5060	5060	22 delivery years beginning June 1, 2017.
5061	5061	23 The procurement process shall be subject to the
5062	5062	24 following provisions:
5063	5063	25 (A) Those zero emission facilities that intend to
5064	5064	26 participate in the procurement shall submit to the
5065	5065
5066	5066
5067	5067
5068	5068
5069	5069
5070	5070	SB2289 - 140 - LRB104 06374 AAS 16410 b
5071	5071
5072	5072
5073	5073	SB2289- 141 -LRB104 06374 AAS 16410 b SB2289 - 141 - LRB104 06374 AAS 16410 b
5074	5074	SB2289 - 141 - LRB104 06374 AAS 16410 b
5075	5075	1 Agency the following eligibility information for each
5076	5076	2 zero emission facility on or before the date
5077	5077	3 established by the Agency:
5078	5078	4 (i) the in-service date and remaining useful
5079	5079	5 life of the zero emission facility;
5080	5080	6 (ii) the amount of power generated annually
5081	5081	7 for each of the years 2005 through 2015, and the
5082	5082	8 projected zero emission credits to be generated
5083	5083	9 over the remaining useful life of the zero
5084	5084	10 emission facility, which shall be used to
5085	5085	11 determine the capability of each facility;
5086	5086	12 (iii) the annual zero emission facility cost
5087	5087	13 projections, expressed on a per megawatthour
5088	5088	14 basis, over the next 6 delivery years, which shall
5089	5089	15 include the following: operation and maintenance
5090	5090	16 expenses; fully allocated overhead costs, which
5091	5091	17 shall be allocated using the methodology developed
5092	5092	18 by the Institute for Nuclear Power Operations;
5093	5093	19 fuel expenditures; non-fuel capital expenditures;
5094	5094	20 spent fuel expenditures; a return on working
5095	5095	21 capital; the cost of operational and market risks
5096	5096	22 that could be avoided by ceasing operation; and
5097	5097	23 any other costs necessary for continued
5098	5098	24 operations, provided that "necessary" means, for
5099	5099	25 purposes of this item (iii), that the costs could
5100	5100	26 reasonably be avoided only by ceasing operations
5101	5101
5102	5102
5103	5103
5104	5104
5105	5105
5106	5106	SB2289 - 141 - LRB104 06374 AAS 16410 b
5107	5107
5108	5108
5109	5109	SB2289- 142 -LRB104 06374 AAS 16410 b SB2289 - 142 - LRB104 06374 AAS 16410 b
5110	5110	SB2289 - 142 - LRB104 06374 AAS 16410 b
5111	5111	1 of the zero emission facility; and
5112	5112	2 (iv) a commitment to continue operating, for
5113	5113	3 the duration of the contract or contracts executed
5114	5114	4 under the procurement held under this subsection
5115	5115	5 (d-5), the zero emission facility that produces
5116	5116	6 the zero emission credits to be procured in the
5117	5117	7 procurement.
5118	5118	8 The information described in item (iii) of this
5119	5119	9 subparagraph (A) may be submitted on a confidential
5120	5120	10 basis and shall be treated and maintained by the
5121	5121	11 Agency, the procurement administrator, and the
5122	5122	12 Commission as confidential and proprietary and exempt
5123	5123	13 from disclosure under subparagraphs (a) and (g) of
5124	5124	14 paragraph (1) of Section 7 of the Freedom of
5125	5125	15 Information Act. The Office of Attorney General shall
5126	5126	16 have access to, and maintain the confidentiality of,
5127	5127	17 such information pursuant to Section 6.5 of the
5128	5128	18 Attorney General Act.
5129	5129	19 (B) The price for each zero emission credit
5130	5130	20 procured under this subsection (d-5) for each delivery
5131	5131	21 year shall be in an amount that equals the Social Cost
5132	5132	22 of Carbon, expressed on a price per megawatthour
5133	5133	23 basis. However, to ensure that the procurement remains
5134	5134	24 affordable to retail customers in this State if
5135	5135	25 electricity prices increase, the price in an
5136	5136	26 applicable delivery year shall be reduced below the
5137	5137
5138	5138
5139	5139
5140	5140
5141	5141
5142	5142	SB2289 - 142 - LRB104 06374 AAS 16410 b
5143	5143
5144	5144
5145	5145	SB2289- 143 -LRB104 06374 AAS 16410 b SB2289 - 143 - LRB104 06374 AAS 16410 b
5146	5146	SB2289 - 143 - LRB104 06374 AAS 16410 b
5147	5147	1 Social Cost of Carbon by the amount ("Price
5148	5148	2 Adjustment") by which the market price index for the
5149	5149	3 applicable delivery year exceeds the baseline market
5150	5150	4 price index for the consecutive 12-month period ending
5151	5151	5 May 31, 2016. If the Price Adjustment is greater than
5152	5152	6 or equal to the Social Cost of Carbon in an applicable
5153	5153	7 delivery year, then no payments shall be due in that
5154	5154	8 delivery year. The components of this calculation are
5155	5155	9 defined as follows:
5156	5156	10 (i) Social Cost of Carbon: The Social Cost of
5157	5157	11 Carbon is $16.50 per megawatthour, which is based
5158	5158	12 on the U.S. Interagency Working Group on Social
5159	5159	13 Cost of Carbon's price in the August 2016
5160	5160	14 Technical Update using a 3% discount rate,
5161	5161	15 adjusted for inflation for each year of the
5162	5162	16 program. Beginning with the delivery year
5163	5163	17 commencing June 1, 2023, the price per
5164	5164	18 megawatthour shall increase by $1 per
5165	5165	19 megawatthour, and continue to increase by an
5166	5166	20 additional $1 per megawatthour each delivery year
5167	5167	21 thereafter.
5168	5168	22 (ii) Baseline market price index: The baseline
5169	5169	23 market price index for the consecutive 12-month
5170	5170	24 period ending May 31, 2016 is $31.40 per
5171	5171	25 megawatthour, which is based on the sum of (aa)
5172	5172	26 the average day-ahead energy price across all
5173	5173
5174	5174
5175	5175
5176	5176
5177	5177
5178	5178	SB2289 - 143 - LRB104 06374 AAS 16410 b
5179	5179
5180	5180
5181	5181	SB2289- 144 -LRB104 06374 AAS 16410 b SB2289 - 144 - LRB104 06374 AAS 16410 b
5182	5182	SB2289 - 144 - LRB104 06374 AAS 16410 b
5183	5183	1 hours of such 12-month period at the PJM
5184	5184	2 Interconnection LLC Northern Illinois Hub, (bb)
5185	5185	3 50% multiplied by the Base Residual Auction, or
5186	5186	4 its successor, capacity price for the rest of the
5187	5187	5 RTO zone group determined by PJM Interconnection
5188	5188	6 LLC, divided by 24 hours per day, and (cc) 50%
5189	5189	7 multiplied by the Planning Resource Auction, or
5190	5190	8 its successor, capacity price for Zone 4
5191	5191	9 determined by the Midcontinent Independent System
5192	5192	10 Operator, Inc., divided by 24 hours per day.
5193	5193	11 (iii) Market price index: The market price
5194	5194	12 index for a delivery year shall be the sum of
5195	5195	13 projected energy prices and projected capacity
5196	5196	14 prices determined as follows:
5197	5197	15 (aa) Projected energy prices: the
5198	5198	16 projected energy prices for the applicable
5199	5199	17 delivery year shall be calculated once for the
5200	5200	18 year using the forward market price for the
5201	5201	19 PJM Interconnection, LLC Northern Illinois
5202	5202	20 Hub. The forward market price shall be
5203	5203	21 calculated as follows: the energy forward
5204	5204	22 prices for each month of the applicable
5205	5205	23 delivery year averaged for each trade date
5206	5206	24 during the calendar year immediately preceding
5207	5207	25 that delivery year to produce a single energy
5208	5208	26 forward price for the delivery year. The
5209	5209
5210	5210
5211	5211
5212	5212
5213	5213
5214	5214	SB2289 - 144 - LRB104 06374 AAS 16410 b
5215	5215
5216	5216
5217	5217	SB2289- 145 -LRB104 06374 AAS 16410 b SB2289 - 145 - LRB104 06374 AAS 16410 b
5218	5218	SB2289 - 145 - LRB104 06374 AAS 16410 b
5219	5219	1 forward market price calculation shall use
5220	5220	2 data published by the Intercontinental
5221	5221	3 Exchange, or its successor.
5222	5222	4 (bb) Projected capacity prices:
5223	5223	5 (I) For the delivery years commencing
5224	5224	6 June 1, 2017, June 1, 2018, and June 1,
5225	5225	7 2019, the projected capacity price shall
5226	5226	8 be equal to the sum of (1) 50% multiplied
5227	5227	9 by the Base Residual Auction, or its
5228	5228	10 successor, price for the rest of the RTO
5229	5229	11 zone group as determined by PJM
5230	5230	12 Interconnection LLC, divided by 24 hours
5231	5231	13 per day and, (2) 50% multiplied by the
5232	5232	14 resource auction price determined in the
5233	5233	15 resource auction administered by the
5234	5234	16 Midcontinent Independent System Operator,
5235	5235	17 Inc., in which the largest percentage of
5236	5236	18 load cleared for Local Resource Zone 4,
5237	5237	19 divided by 24 hours per day, and where
5238	5238	20 such price is determined by the
5239	5239	21 Midcontinent Independent System Operator,
5240	5240	22 Inc.
5241	5241	23 (II) For the delivery year commencing
5242	5242	24 June 1, 2020, and each year thereafter,
5243	5243	25 the projected capacity price shall be
5244	5244	26 equal to the sum of (1) 50% multiplied by
5245	5245
5246	5246
5247	5247
5248	5248
5249	5249
5250	5250	SB2289 - 145 - LRB104 06374 AAS 16410 b
5251	5251
5252	5252
5253	5253	SB2289- 146 -LRB104 06374 AAS 16410 b SB2289 - 146 - LRB104 06374 AAS 16410 b
5254	5254	SB2289 - 146 - LRB104 06374 AAS 16410 b
5255	5255	1 the Base Residual Auction, or its
5256	5256	2 successor, price for the ComEd zone as
5257	5257	3 determined by PJM Interconnection LLC,
5258	5258	4 divided by 24 hours per day, and (2) 50%
5259	5259	5 multiplied by the resource auction price
5260	5260	6 determined in the resource auction
5261	5261	7 administered by the Midcontinent
5262	5262	8 Independent System Operator, Inc., in
5263	5263	9 which the largest percentage of load
5264	5264	10 cleared for Local Resource Zone 4, divided
5265	5265	11 by 24 hours per day, and where such price
5266	5266	12 is determined by the Midcontinent
5267	5267	13 Independent System Operator, Inc.
5268	5268	14 For purposes of this subsection (d-5):
5269	5269	15 "Rest of the RTO" and "ComEd Zone" shall have
5270	5270	16 the meaning ascribed to them by PJM
5271	5271	17 Interconnection, LLC.
5272	5272	18 "RTO" means regional transmission
5273	5273	19 organization.
5274	5274	20 (C) No later than 45 days after June 1, 2017 (the
5275	5275	21 effective date of Public Act 99-906), the Agency shall
5276	5276	22 publish its proposed zero emission standard
5277	5277	23 procurement plan. The plan shall be consistent with
5278	5278	24 the provisions of this paragraph (1) and shall provide
5279	5279	25 that winning bids shall be selected based on public
5280	5280	26 interest criteria that include, but are not limited
5281	5281
5282	5282
5283	5283
5284	5284
5285	5285
5286	5286	SB2289 - 146 - LRB104 06374 AAS 16410 b
5287	5287
5288	5288
5289	5289	SB2289- 147 -LRB104 06374 AAS 16410 b SB2289 - 147 - LRB104 06374 AAS 16410 b
5290	5290	SB2289 - 147 - LRB104 06374 AAS 16410 b
5291	5291	1 to, minimizing carbon dioxide emissions that result
5292	5292	2 from electricity consumed in Illinois and minimizing
5293	5293	3 sulfur dioxide, nitrogen oxide, and particulate matter
5294	5294	4 emissions that adversely affect the citizens of this
5295	5295	5 State. In particular, the selection of winning bids
5296	5296	6 shall take into account the incremental environmental
5297	5297	7 benefits resulting from the procurement, such as any
5298	5298	8 existing environmental benefits that are preserved by
5299	5299	9 the procurements held under Public Act 99-906 and
5300	5300	10 would cease to exist if the procurements were not
5301	5301	11 held, including the preservation of zero emission
5302	5302	12 facilities. The plan shall also describe in detail how
5303	5303	13 each public interest factor shall be considered and
5304	5304	14 weighted in the bid selection process to ensure that
5305	5305	15 the public interest criteria are applied to the
5306	5306	16 procurement and given full effect.
5307	5307	17 For purposes of developing the plan, the Agency
5308	5308	18 shall consider any reports issued by a State agency,
5309	5309	19 board, or commission under House Resolution 1146 of
5310	5310	20 the 98th General Assembly and paragraph (4) of
5311	5311	21 subsection (d) of this Section, as well as publicly
5312	5312	22 available analyses and studies performed by or for
5313	5313	23 regional transmission organizations that serve the
5314	5314	24 State and their independent market monitors.
5315	5315	25 Upon publishing of the zero emission standard
5316	5316	26 procurement plan, copies of the plan shall be posted
5317	5317
5318	5318
5319	5319
5320	5320
5321	5321
5322	5322	SB2289 - 147 - LRB104 06374 AAS 16410 b
5323	5323
5324	5324
5325	5325	SB2289- 148 -LRB104 06374 AAS 16410 b SB2289 - 148 - LRB104 06374 AAS 16410 b
5326	5326	SB2289 - 148 - LRB104 06374 AAS 16410 b
5327	5327	1 and made publicly available on the Agency's website.
5328	5328	2 All interested parties shall have 10 days following
5329	5329	3 the date of posting to provide comment to the Agency on
5330	5330	4 the plan. All comments shall be posted to the Agency's
5331	5331	5 website. Following the end of the comment period, but
5332	5332	6 no more than 60 days later than June 1, 2017 (the
5333	5333	7 effective date of Public Act 99-906), the Agency shall
5334	5334	8 revise the plan as necessary based on the comments
5335	5335	9 received and file its zero emission standard
5336	5336	10 procurement plan with the Commission.
5337	5337	11 If the Commission determines that the plan will
5338	5338	12 result in the procurement of cost-effective zero
5339	5339	13 emission credits, then the Commission shall, after
5340	5340	14 notice and hearing, but no later than 45 days after the
5341	5341	15 Agency filed the plan, approve the plan or approve
5342	5342	16 with modification. For purposes of this subsection
5343	5343	17 (d-5), "cost effective" means the projected costs of
5344	5344	18 procuring zero emission credits from zero emission
5345	5345	19 facilities do not cause the limit stated in paragraph
5346	5346	20 (2) of this subsection to be exceeded.
5347	5347	21 (C-5) As part of the Commission's review and
5348	5348	22 acceptance or rejection of the procurement results,
5349	5349	23 the Commission shall, in its public notice of
5350	5350	24 successful bidders:
5351	5351	25 (i) identify how the winning bids satisfy the
5352	5352	26 public interest criteria described in subparagraph
5353	5353
5354	5354
5355	5355
5356	5356
5357	5357
5358	5358	SB2289 - 148 - LRB104 06374 AAS 16410 b
5359	5359
5360	5360
5361	5361	SB2289- 149 -LRB104 06374 AAS 16410 b SB2289 - 149 - LRB104 06374 AAS 16410 b
5362	5362	SB2289 - 149 - LRB104 06374 AAS 16410 b
5363	5363	1 (C) of this paragraph (1) of minimizing carbon
5364	5364	2 dioxide emissions that result from electricity
5365	5365	3 consumed in Illinois and minimizing sulfur
5366	5366	4 dioxide, nitrogen oxide, and particulate matter
5367	5367	5 emissions that adversely affect the citizens of
5368	5368	6 this State;
5369	5369	7 (ii) specifically address how the selection of
5370	5370	8 winning bids takes into account the incremental
5371	5371	9 environmental benefits resulting from the
5372	5372	10 procurement, including any existing environmental
5373	5373	11 benefits that are preserved by the procurements
5374	5374	12 held under Public Act 99-906 and would have ceased
5375	5375	13 to exist if the procurements had not been held,
5376	5376	14 such as the preservation of zero emission
5377	5377	15 facilities;
5378	5378	16 (iii) quantify the environmental benefit of
5379	5379	17 preserving the resources identified in item (ii)
5380	5380	18 of this subparagraph (C-5), including the
5381	5381	19 following:
5382	5382	20 (aa) the value of avoided greenhouse gas
5383	5383	21 emissions measured as the product of the zero
5384	5384	22 emission facilities' output over the contract
5385	5385	23 term multiplied by the U.S. Environmental
5386	5386	24 Protection Agency eGrid subregion carbon
5387	5387	25 dioxide emission rate and the U.S. Interagency
5388	5388	26 Working Group on Social Cost of Carbon's price
5389	5389
5390	5390
5391	5391
5392	5392
5393	5393
5394	5394	SB2289 - 149 - LRB104 06374 AAS 16410 b
5395	5395
5396	5396
5397	5397	SB2289- 150 -LRB104 06374 AAS 16410 b SB2289 - 150 - LRB104 06374 AAS 16410 b
5398	5398	SB2289 - 150 - LRB104 06374 AAS 16410 b
5399	5399	1 in the August 2016 Technical Update using a 3%
5400	5400	2 discount rate, adjusted for inflation for each
5401	5401	3 delivery year; and
5402	5402	4 (bb) the costs of replacement with other
5403	5403	5 zero carbon dioxide resources, including wind
5404	5404	6 and photovoltaic, based upon the simple
5405	5405	7 average of the following:
5406	5406	8 (I) the price, or if there is more
5407	5407	9 than one price, the average of the prices,
5408	5408	10 paid for renewable energy credits from new
5409	5409	11 utility-scale wind projects in the
5410	5410	12 procurement events specified in item (i)
5411	5411	13 of subparagraph (G) of paragraph (1) of
5412	5412	14 subsection (c) of this Section; and
5413	5413	15 (II) the price, or if there is more
5414	5414	16 than one price, the average of the prices,
5415	5415	17 paid for renewable energy credits from new
5416	5416	18 utility-scale solar projects and
5417	5417	19 brownfield site photovoltaic projects in
5418	5418	20 the procurement events specified in item
5419	5419	21 (ii) of subparagraph (G) of paragraph (1)
5420	5420	22 of subsection (c) of this Section and,
5421	5421	23 after January 1, 2015, renewable energy
5422	5422	24 credits from photovoltaic distributed
5423	5423	25 generation projects in procurement events
5424	5424	26 held under subsection (c) of this Section.
5425	5425
5426	5426
5427	5427
5428	5428
5429	5429
5430	5430	SB2289 - 150 - LRB104 06374 AAS 16410 b
5431	5431
5432	5432
5433	5433	SB2289- 151 -LRB104 06374 AAS 16410 b SB2289 - 151 - LRB104 06374 AAS 16410 b
5434	5434	SB2289 - 151 - LRB104 06374 AAS 16410 b
5435	5435	1 Each utility shall enter into binding contractual
5436	5436	2 arrangements with the winning suppliers.
5437	5437	3 The procurement described in this subsection
5438	5438	4 (d-5), including, but not limited to, the execution of
5439	5439	5 all contracts procured, shall be completed no later
5440	5440	6 than May 10, 2017. Based on the effective date of
5441	5441	7 Public Act 99-906, the Agency and Commission may, as
5442	5442	8 appropriate, modify the various dates and timelines
5443	5443	9 under this subparagraph and subparagraphs (C) and (D)
5444	5444	10 of this paragraph (1). The procurement and plan
5445	5445	11 approval processes required by this subsection (d-5)
5446	5446	12 shall be conducted in conjunction with the procurement
5447	5447	13 and plan approval processes required by subsection (c)
5448	5448	14 of this Section and Section 16-111.5 of the Public
5449	5449	15 Utilities Act, to the extent practicable.
5450	5450	16 Notwithstanding whether a procurement event is
5451	5451	17 conducted under Section 16-111.5 of the Public
5452	5452	18 Utilities Act, the Agency shall immediately initiate a
5453	5453	19 procurement process on June 1, 2017 (the effective
5454	5454	20 date of Public Act 99-906).
5455	5455	21 (D) Following the procurement event described in
5456	5456	22 this paragraph (1) and consistent with subparagraph
5457	5457	23 (B) of this paragraph (1), the Agency shall calculate
5458	5458	24 the payments to be made under each contract for the
5459	5459	25 next delivery year based on the market price index for
5460	5460	26 that delivery year. The Agency shall publish the
5461	5461
5462	5462
5463	5463
5464	5464
5465	5465
5466	5466	SB2289 - 151 - LRB104 06374 AAS 16410 b
5467	5467
5468	5468
5469	5469	SB2289- 152 -LRB104 06374 AAS 16410 b SB2289 - 152 - LRB104 06374 AAS 16410 b
5470	5470	SB2289 - 152 - LRB104 06374 AAS 16410 b
5471	5471	1 payment calculations no later than May 25, 2017 and
5472	5472	2 every May 25 thereafter.
5473	5473	3 (E) Notwithstanding the requirements of this
5474	5474	4 subsection (d-5), the contracts executed under this
5475	5475	5 subsection (d-5) shall provide that the zero emission
5476	5476	6 facility may, as applicable, suspend or terminate
5477	5477	7 performance under the contracts in the following
5478	5478	8 instances:
5479	5479	9 (i) A zero emission facility shall be excused
5480	5480	10 from its performance under the contract for any
5481	5481	11 cause beyond the control of the resource,
5482	5482	12 including, but not restricted to, acts of God,
5483	5483	13 flood, drought, earthquake, storm, fire,
5484	5484	14 lightning, epidemic, war, riot, civil disturbance
5485	5485	15 or disobedience, labor dispute, labor or material
5486	5486	16 shortage, sabotage, acts of public enemy,
5487	5487	17 explosions, orders, regulations or restrictions
5488	5488	18 imposed by governmental, military, or lawfully
5489	5489	19 established civilian authorities, which, in any of
5490	5490	20 the foregoing cases, by exercise of commercially
5491	5491	21 reasonable efforts the zero emission facility
5492	5492	22 could not reasonably have been expected to avoid,
5493	5493	23 and which, by the exercise of commercially
5494	5494	24 reasonable efforts, it has been unable to
5495	5495	25 overcome. In such event, the zero emission
5496	5496	26 facility shall be excused from performance for the
5497	5497
5498	5498
5499	5499
5500	5500
5501	5501
5502	5502	SB2289 - 152 - LRB104 06374 AAS 16410 b
5503	5503
5504	5504
5505	5505	SB2289- 153 -LRB104 06374 AAS 16410 b SB2289 - 153 - LRB104 06374 AAS 16410 b
5506	5506	SB2289 - 153 - LRB104 06374 AAS 16410 b
5507	5507	1 duration of the event, including, but not limited
5508	5508	2 to, delivery of zero emission credits, and no
5509	5509	3 payment shall be due to the zero emission facility
5510	5510	4 during the duration of the event.
5511	5511	5 (ii) A zero emission facility shall be
5512	5512	6 permitted to terminate the contract if legislation
5513	5513	7 is enacted into law by the General Assembly that
5514	5514	8 imposes or authorizes a new tax, special
5515	5515	9 assessment, or fee on the generation of
5516	5516	10 electricity, the ownership or leasehold of a
5517	5517	11 generating unit, or the privilege or occupation of
5518	5518	12 such generation, ownership, or leasehold of
5519	5519	13 generation units by a zero emission facility.
5520	5520	14 However, the provisions of this item (ii) do not
5521	5521	15 apply to any generally applicable tax, special
5522	5522	16 assessment or fee, or requirements imposed by
5523	5523	17 federal law.
5524	5524	18 (iii) A zero emission facility shall be
5525	5525	19 permitted to terminate the contract in the event
5526	5526	20 that the resource requires capital expenditures in
5527	5527	21 excess of $40,000,000 that were neither known nor
5528	5528	22 reasonably foreseeable at the time it executed the
5529	5529	23 contract and that a prudent owner or operator of
5530	5530	24 such resource would not undertake.
5531	5531	25 (iv) A zero emission facility shall be
5532	5532	26 permitted to terminate the contract in the event
5533	5533
5534	5534
5535	5535
5536	5536
5537	5537
5538	5538	SB2289 - 153 - LRB104 06374 AAS 16410 b
5539	5539
5540	5540
5541	5541	SB2289- 154 -LRB104 06374 AAS 16410 b SB2289 - 154 - LRB104 06374 AAS 16410 b
5542	5542	SB2289 - 154 - LRB104 06374 AAS 16410 b
5543	5543	1 the Nuclear Regulatory Commission terminates the
5544	5544	2 resource's license.
5545	5545	3 (F) If the zero emission facility elects to
5546	5546	4 terminate a contract under subparagraph (E) of this
5547	5547	5 paragraph (1), then the Commission shall reopen the
5548	5548	6 docket in which the Commission approved the zero
5549	5549	7 emission standard procurement plan under subparagraph
5550	5550	8 (C) of this paragraph (1) and, after notice and
5551	5551	9 hearing, enter an order acknowledging the contract
5552	5552	10 termination election if such termination is consistent
5553	5553	11 with the provisions of this subsection (d-5).
5554	5554	12 (2) For purposes of this subsection (d-5), the amount
5555	5555	13 paid per kilowatthour means the total amount paid for
5556	5556	14 electric service expressed on a per kilowatthour basis.
5557	5557	15 For purposes of this subsection (d-5), the total amount
5558	5558	16 paid for electric service includes, without limitation,
5559	5559	17 amounts paid for supply, transmission, distribution,
5560	5560	18 surcharges, and add-on taxes.
5561	5561	19 Notwithstanding the requirements of this subsection
5562	5562	20 (d-5), the contracts executed under this subsection (d-5)
5563	5563	21 shall provide that the total of zero emission credits
5564	5564	22 procured under a procurement plan shall be subject to the
5565	5565	23 limitations of this paragraph (2). For each delivery year,
5566	5566	24 the contractual volume receiving payments in such year
5567	5567	25 shall be reduced for all retail customers based on the
5568	5568	26 amount necessary to limit the net increase that delivery
5569	5569
5570	5570
5571	5571
5572	5572
5573	5573
5574	5574	SB2289 - 154 - LRB104 06374 AAS 16410 b
5575	5575
5576	5576
5577	5577	SB2289- 155 -LRB104 06374 AAS 16410 b SB2289 - 155 - LRB104 06374 AAS 16410 b
5578	5578	SB2289 - 155 - LRB104 06374 AAS 16410 b
5579	5579	1 year to the costs of those credits included in the amounts
5580	5580	2 paid by eligible retail customers in connection with
5581	5581	3 electric service to no more than 1.65% of the amount paid
5582	5582	4 per kilowatthour by eligible retail customers during the
5583	5583	5 year ending May 31, 2009. The result of this computation
5584	5584	6 shall apply to and reduce the procurement for all retail
5585	5585	7 customers, and all those customers shall pay the same
5586	5586	8 single, uniform cents per kilowatthour charge under
5587	5587	9 subsection (k) of Section 16-108 of the Public Utilities
5588	5588	10 Act. To arrive at a maximum dollar amount of zero emission
5589	5589	11 credits to be paid for the particular delivery year, the
5590	5590	12 resulting per kilowatthour amount shall be applied to the
5591	5591	13 actual amount of kilowatthours of electricity delivered by
5592	5592	14 the electric utility in the delivery year immediately
5593	5593	15 prior to the procurement, to all retail customers in its
5594	5594	16 service territory. Unpaid contractual volume for any
5595	5595	17 delivery year shall be paid in any subsequent delivery
5596	5596	18 year in which such payments can be made without exceeding
5597	5597	19 the amount specified in this paragraph (2). The
5598	5598	20 calculations required by this paragraph (2) shall be made
5599	5599	21 only once for each procurement plan year. Once the
5600	5600	22 determination as to the amount of zero emission credits to
5601	5601	23 be paid is made based on the calculations set forth in this
5602	5602	24 paragraph (2), no subsequent rate impact determinations
5603	5603	25 shall be made and no adjustments to those contract amounts
5604	5604	26 shall be allowed. All costs incurred under those contracts
5605	5605
5606	5606
5607	5607
5608	5608
5609	5609
5610	5610	SB2289 - 155 - LRB104 06374 AAS 16410 b
5611	5611
5612	5612
5613	5613	SB2289- 156 -LRB104 06374 AAS 16410 b SB2289 - 156 - LRB104 06374 AAS 16410 b
5614	5614	SB2289 - 156 - LRB104 06374 AAS 16410 b
5615	5615	1 and in implementing this subsection (d-5) shall be
5616	5616	2 recovered by the electric utility as provided in this
5617	5617	3 Section.
5618	5618	4 No later than June 30, 2019, the Commission shall
5619	5619	5 review the limitation on the amount of zero emission
5620	5620	6 credits procured under this subsection (d-5) and report to
5621	5621	7 the General Assembly its findings as to whether that
5622	5622	8 limitation unduly constrains the procurement of
5623	5623	9 cost-effective zero emission credits.
5624	5624	10 (3) Six years after the execution of a contract under
5625	5625	11 this subsection (d-5), the Agency shall determine whether
5626	5626	12 the actual zero emission credit payments received by the
5627	5627	13 supplier over the 6-year period exceed the Average ZEC
5628	5628	14 Payment. In addition, at the end of the term of a contract
5629	5629	15 executed under this subsection (d-5), or at the time, if
5630	5630	16 any, a zero emission facility's contract is terminated
5631	5631	17 under subparagraph (E) of paragraph (1) of this subsection
5632	5632	18 (d-5), then the Agency shall determine whether the actual
5633	5633	19 zero emission credit payments received by the supplier
5634	5634	20 over the term of the contract exceed the Average ZEC
5635	5635	21 Payment, after taking into account any amounts previously
5636	5636	22 credited back to the utility under this paragraph (3). If
5637	5637	23 the Agency determines that the actual zero emission credit
5638	5638	24 payments received by the supplier over the relevant period
5639	5639	25 exceed the Average ZEC Payment, then the supplier shall
5640	5640	26 credit the difference back to the utility. The amount of
5641	5641
5642	5642
5643	5643
5644	5644
5645	5645
5646	5646	SB2289 - 156 - LRB104 06374 AAS 16410 b
5647	5647
5648	5648
5649	5649	SB2289- 157 -LRB104 06374 AAS 16410 b SB2289 - 157 - LRB104 06374 AAS 16410 b
5650	5650	SB2289 - 157 - LRB104 06374 AAS 16410 b
5651	5651	1 the credit shall be remitted to the applicable electric
5652	5652	2 utility no later than 120 days after the Agency's
5653	5653	3 determination, which the utility shall reflect as a credit
5654	5654	4 on its retail customer bills as soon as practicable;
5655	5655	5 however, the credit remitted to the utility shall not
5656	5656	6 exceed the total amount of payments received by the
5657	5657	7 facility under its contract.
5658	5658	8 For purposes of this Section, the Average ZEC Payment
5659	5659	9 shall be calculated by multiplying the quantity of zero
5660	5660	10 emission credits delivered under the contract times the
5661	5661	11 average contract price. The average contract price shall
5662	5662	12 be determined by subtracting the amount calculated under
5663	5663	13 subparagraph (B) of this paragraph (3) from the amount
5664	5664	14 calculated under subparagraph (A) of this paragraph (3),
5665	5665	15 as follows:
5666	5666	16 (A) The average of the Social Cost of Carbon, as
5667	5667	17 defined in subparagraph (B) of paragraph (1) of this
5668	5668	18 subsection (d-5), during the term of the contract.
5669	5669	19 (B) The average of the market price indices, as
5670	5670	20 defined in subparagraph (B) of paragraph (1) of this
5671	5671	21 subsection (d-5), during the term of the contract,
5672	5672	22 minus the baseline market price index, as defined in
5673	5673	23 subparagraph (B) of paragraph (1) of this subsection
5674	5674	24 (d-5).
5675	5675	25 If the subtraction yields a negative number, then the
5676	5676	26 Average ZEC Payment shall be zero.
5677	5677
5678	5678
5679	5679
5680	5680
5681	5681
5682	5682	SB2289 - 157 - LRB104 06374 AAS 16410 b
5683	5683
5684	5684
5685	5685	SB2289- 158 -LRB104 06374 AAS 16410 b SB2289 - 158 - LRB104 06374 AAS 16410 b
5686	5686	SB2289 - 158 - LRB104 06374 AAS 16410 b
5687	5687	1 (4) Cost-effective zero emission credits procured from
5688	5688	2 zero emission facilities shall satisfy the applicable
5689	5689	3 definitions set forth in Section 1-10 of this Act.
5690	5690	4 (5) The electric utility shall retire all zero
5691	5691	5 emission credits used to comply with the requirements of
5692	5692	6 this subsection (d-5).
5693	5693	7 (6) Electric utilities shall be entitled to recover
5694	5694	8 all of the costs associated with the procurement of zero
5695	5695	9 emission credits through an automatic adjustment clause
5696	5696	10 tariff in accordance with subsection (k) and (m) of
5697	5697	11 Section 16-108 of the Public Utilities Act, and the
5698	5698	12 contracts executed under this subsection (d-5) shall
5699	5699	13 provide that the utilities' payment obligations under such
5700	5700	14 contracts shall be reduced if an adjustment is required
5701	5701	15 under subsection (m) of Section 16-108 of the Public
5702	5702	16 Utilities Act.
5703	5703	17 (7) This subsection (d-5) shall become inoperative on
5704	5704	18 January 1, 2028.
5705	5705	19 (d-10) Nuclear Plant Assistance; carbon mitigation
5706	5706	20 credits.
5707	5707	21 (1) The General Assembly finds:
5708	5708	22 (A) The health, welfare, and prosperity of all
5709	5709	23 Illinois citizens require that the State of Illinois act
5710	5710	24 to avoid and not increase carbon emissions from electric
5711	5711	25 generation sources while continuing to ensure affordable,
5712	5712	26 stable, and reliable electricity to all citizens.
5713	5713
5714	5714
5715	5715
5716	5716
5717	5717
5718	5718	SB2289 - 158 - LRB104 06374 AAS 16410 b
5719	5719
5720	5720
5721	5721	SB2289- 159 -LRB104 06374 AAS 16410 b SB2289 - 159 - LRB104 06374 AAS 16410 b
5722	5722	SB2289 - 159 - LRB104 06374 AAS 16410 b
5723	5723	1 (B) Absent immediate action by the State to preserve
5724	5724	2 existing carbon-free energy resources, those resources may
5725	5725	3 retire, and the electric generation needs of Illinois'
5726	5726	4 retail customers may be met instead by facilities that
5727	5727	5 emit significant amounts of carbon pollution and other
5728	5728	6 harmful air pollutants at a high social and economic cost
5729	5729	7 until Illinois is able to develop other forms of clean
5730	5730	8 energy.
5731	5731	9 (C) The General Assembly finds that nuclear power
5732	5732	10 generation is necessary for the State's transition to 100%
5733	5733	11 clean energy, and ensuring continued operation of nuclear
5734	5734	12 plants advances environmental and public health interests
5735	5735	13 through providing carbon-free electricity while reducing
5736	5736	14 the air pollution profile of the Illinois energy
5737	5737	15 generation fleet.
5738	5738	16 (D) The clean energy attributes of nuclear generation
5739	5739	17 facilities support the State in its efforts to achieve
5740	5740	18 100% clean energy.
5741	5741	19 (E) The State currently invests in various forms of
5742	5742	20 clean energy, including, but not limited to, renewable
5743	5743	21 energy, energy efficiency, and low-emission vehicles,
5744	5744	22 among others.
5745	5745	23 (F) The Environmental Protection Agency commissioned
5746	5746	24 an independent audit which provided a detailed assessment
5747	5747	25 of the financial condition of the Illinois nuclear fleet
5748	5748	26 to evaluate its financial viability and whether the
5749	5749
5750	5750
5751	5751
5752	5752
5753	5753
5754	5754	SB2289 - 159 - LRB104 06374 AAS 16410 b
5755	5755
5756	5756
5757	5757	SB2289- 160 -LRB104 06374 AAS 16410 b SB2289 - 160 - LRB104 06374 AAS 16410 b
5758	5758	SB2289 - 160 - LRB104 06374 AAS 16410 b
5759	5759	1 environmental benefits of such resources were at risk. The
5760	5760	2 report identified the risk of losing the environmental
5761	5761	3 benefits of several specific nuclear units. The report
5762	5762	4 also identified that the LaSalle County Generating Station
5763	5763	5 will continue to operate through 2026 and therefore is not
5764	5764	6 eligible to participate in the carbon mitigation credit
5765	5765	7 program.
5766	5766	8 (G) Nuclear plants provide carbon-free energy, which
5767	5767	9 helps to avoid many health-related negative impacts for
5768	5768	10 Illinois residents.
5769	5769	11 (H) The procurement of carbon mitigation credits
5770	5770	12 representing the environmental benefits of carbon-free
5771	5771	13 generation will further the State's efforts at achieving
5772	5772	14 100% clean energy and decarbonizing the electricity sector
5773	5773	15 in a safe, reliable, and affordable manner. Further, the
5774	5774	16 procurement of carbon emission credits will enhance the
5775	5775	17 health and welfare of Illinois residents through decreased
5776	5776	18 reliance on more highly polluting generation.
5777	5777	19 (I) The General Assembly therefore finds it necessary
5778	5778	20 to establish carbon mitigation credits to ensure decreased
5779	5779	21 reliance on more carbon-intensive energy resources, for
5780	5780	22 transitioning to a fully decarbonized electricity sector,
5781	5781	23 and to help ensure health and welfare of the State's
5782	5782	24 residents.
5783	5783	25 (2) As used in this subsection:
5784	5784	26 "Baseline costs" means costs used to establish a customer
5785	5785
5786	5786
5787	5787
5788	5788
5789	5789
5790	5790	SB2289 - 160 - LRB104 06374 AAS 16410 b
5791	5791
5792	5792
5793	5793	SB2289- 161 -LRB104 06374 AAS 16410 b SB2289 - 161 - LRB104 06374 AAS 16410 b
5794	5794	SB2289 - 161 - LRB104 06374 AAS 16410 b
5795	5795	1 protection cap that have been evaluated through an independent
5796	5796	2 audit of a carbon-free energy resource conducted by the
5797	5797	3 Environmental Protection Agency that evaluated projected
5798	5798	4 annual costs for operation and maintenance expenses; fully
5799	5799	5 allocated overhead costs, which shall be allocated using the
5800	5800	6 methodology developed by the Institute for Nuclear Power
5801	5801	7 Operations; fuel expenditures; nonfuel capital expenditures;
5802	5802	8 spent fuel expenditures; a return on working capital; the cost
5803	5803	9 of operational and market risks that could be avoided by
5804	5804	10 ceasing operation; and any other costs necessary for continued
5805	5805	11 operations, provided that "necessary" means, for purposes of
5806	5806	12 this definition, that the costs could reasonably be avoided
5807	5807	13 only by ceasing operations of the carbon-free energy resource.
5808	5808	14 "Carbon mitigation credit" means a tradable credit that
5809	5809	15 represents the carbon emission reduction attributes of one
5810	5810	16 megawatt-hour of energy produced from a carbon-free energy
5811	5811	17 resource.
5812	5812	18 "Carbon-free energy resource" means a generation facility
5813	5813	19 that: (1) is fueled by nuclear power; and (2) is
5814	5814	20 interconnected to PJM Interconnection, LLC.
5815	5815	21 (3) Procurement.
5816	5816	22 (A) Beginning with the delivery year commencing on
5817	5817	23 June 1, 2022, the Agency shall, for electric utilities
5818	5818	24 serving at least 3,000,000 retail customers in the State,
5819	5819	25 seek to procure contracts for no more than approximately
5820	5820	26 54,500,000 cost-effective carbon mitigation credits from
5821	5821
5822	5822
5823	5823
5824	5824
5825	5825
5826	5826	SB2289 - 161 - LRB104 06374 AAS 16410 b
5827	5827
5828	5828
5829	5829	SB2289- 162 -LRB104 06374 AAS 16410 b SB2289 - 162 - LRB104 06374 AAS 16410 b
5830	5830	SB2289 - 162 - LRB104 06374 AAS 16410 b
5831	5831	1 carbon-free energy resources because such credits are
5832	5832	2 necessary to support current levels of carbon-free energy
5833	5833	3 generation and ensure the State meets its carbon dioxide
5834	5834	4 emissions reduction goals. The Agency shall not make a
5835	5835	5 partial award of a contract for carbon mitigation credits
5836	5836	6 covering a fractional amount of a carbon-free energy
5837	5837	7 resource's projected output.
5838	5838	8 (B) Each carbon-free energy resource that intends to
5839	5839	9 participate in a procurement shall be required to submit
5840	5840	10 to the Agency the following information for the resource
5841	5841	11 on or before the date established by the Agency:
5842	5842	12 (i) the in-service date and remaining useful life
5843	5843	13 of the carbon-free energy resource;
5844	5844	14 (ii) the amount of power generated annually for
5845	5845	15 each of the past 10 years, which shall be used to
5846	5846	16 determine the capability of each facility;
5847	5847	17 (iii) a commitment to be reflected in any contract
5848	5848	18 entered into pursuant to this subsection (d-10) to
5849	5849	19 continue operating the carbon-free energy resource at
5850	5850	20 a capacity factor of at least 88% annually on average
5851	5851	21 for the duration of the contract or contracts executed
5852	5852	22 under the procurement held under this subsection
5853	5853	23 (d-10), except in an instance described in
5854	5854	24 subparagraph (E) of paragraph (1) of subsection (d-5)
5855	5855	25 of this Section or made impracticable as a result of
5856	5856	26 compliance with law or regulation;
5857	5857
5858	5858
5859	5859
5860	5860
5861	5861
5862	5862	SB2289 - 162 - LRB104 06374 AAS 16410 b
5863	5863
5864	5864
5865	5865	SB2289- 163 -LRB104 06374 AAS 16410 b SB2289 - 163 - LRB104 06374 AAS 16410 b
5866	5866	SB2289 - 163 - LRB104 06374 AAS 16410 b
5867	5867	1 (iv) financial need and the risk of loss of the
5868	5868	2 environmental benefits of such resource, which shall
5869	5869	3 include the following information:
5870	5870	4 (I) the carbon-free energy resource's cost
5871	5871	5 projections, expressed on a per megawatt-hour
5872	5872	6 basis, over the next 5 delivery years, which shall
5873	5873	7 include the following: operation and maintenance
5874	5874	8 expenses; fully allocated overhead costs, which
5875	5875	9 shall be allocated using the methodology developed
5876	5876	10 by the Institute for Nuclear Power Operations;
5877	5877	11 fuel expenditures; nonfuel capital expenditures;
5878	5878	12 spent fuel expenditures; a return on working
5879	5879	13 capital; the cost of operational and market risks
5880	5880	14 that could be avoided by ceasing operation; and
5881	5881	15 any other costs necessary for continued
5882	5882	16 operations, provided that "necessary" means, for
5883	5883	17 purposes of this subitem (I), that the costs could
5884	5884	18 reasonably be avoided only by ceasing operations
5885	5885	19 of the carbon-free energy resource; and
5886	5886	20 (II) the carbon-free energy resource's revenue
5887	5887	21 projections, including energy, capacity, ancillary
5888	5888	22 services, any other direct State support, known or
5889	5889	23 anticipated federal attribute credits, known or
5890	5890	24 anticipated tax credits, and any other direct
5891	5891	25 federal support.
5892	5892	26 The information described in this subparagraph (B) may
5893	5893
5894	5894
5895	5895
5896	5896
5897	5897
5898	5898	SB2289 - 163 - LRB104 06374 AAS 16410 b
5899	5899
5900	5900
5901	5901	SB2289- 164 -LRB104 06374 AAS 16410 b SB2289 - 164 - LRB104 06374 AAS 16410 b
5902	5902	SB2289 - 164 - LRB104 06374 AAS 16410 b
5903	5903	1 be submitted on a confidential basis and shall be treated
5904	5904	2 and maintained by the Agency, the procurement
5905	5905	3 administrator, and the Commission as confidential and
5906	5906	4 proprietary and exempt from disclosure under subparagraphs
5907	5907	5 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
5908	5908	6 Information Act. The Office of the Attorney General shall
5909	5909	7 have access to, and maintain the confidentiality of, such
5910	5910	8 information pursuant to Section 6.5 of the Attorney
5911	5911	9 General Act.
5912	5912	10 (C) The Agency shall solicit bids for the contracts
5913	5913	11 described in this subsection (d-10) from carbon-free
5914	5914	12 energy resources that have satisfied the requirements of
5915	5915	13 subparagraph (B) of this paragraph (3). The contracts
5916	5916	14 procured pursuant to a procurement event shall reflect,
5917	5917	15 and be subject to, the following terms, requirements, and
5918	5918	16 limitations:
5919	5919	17 (i) Contracts are for delivery of carbon
5920	5920	18 mitigation credits, and are not energy or capacity
5921	5921	19 sales contracts requiring physical delivery. Pursuant
5922	5922	20 to item (iii), contract payments shall fully deduct
5923	5923	21 the value of any monetized federal production tax
5924	5924	22 credits, credits issued pursuant to a federal clean
5925	5925	23 energy standard, and other federal credits if
5926	5926	24 applicable.
5927	5927	25 (ii) Contracts for carbon mitigation credits shall
5928	5928	26 commence with the delivery year beginning on June 1,
5929	5929
5930	5930
5931	5931
5932	5932
5933	5933
5934	5934	SB2289 - 164 - LRB104 06374 AAS 16410 b
5935	5935
5936	5936
5937	5937	SB2289- 165 -LRB104 06374 AAS 16410 b SB2289 - 165 - LRB104 06374 AAS 16410 b
5938	5938	SB2289 - 165 - LRB104 06374 AAS 16410 b
5939	5939	1 2022 and shall be for a term of 5 delivery years
5940	5940	2 concluding on May 31, 2027.
5941	5941	3 (iii) The price per carbon mitigation credit to be
5942	5942	4 paid under a contract for a given delivery year shall
5943	5943	5 be equal to an accepted bid price less the sum of:
5944	5944	6 (I) one of the following energy price indices,
5945	5945	7 selected by the bidder at the time of the bid for
5946	5946	8 the term of the contract:
5947	5947	9 (aa) the weighted-average hourly day-ahead
5948	5948	10 price for the applicable delivery year at the
5949	5949	11 busbar of all resources procured pursuant to
5950	5950	12 this subsection (d-10), weighted by actual
5951	5951	13 production from the resources; or
5952	5952	14 (bb) the projected energy price for the
5953	5953	15 PJM Interconnection, LLC Northern Illinois Hub
5954	5954	16 for the applicable delivery year determined
5955	5955	17 according to subitem (aa) of item (iii) of
5956	5956	18 subparagraph (B) of paragraph (1) of
5957	5957	19 subsection (d-5).
5958	5958	20 (II) the Base Residual Auction Capacity Price
5959	5959	21 for the ComEd zone as determined by PJM
5960	5960	22 Interconnection, LLC, divided by 24 hours per day,
5961	5961	23 for the applicable delivery year for the first 3
5962	5962	24 delivery years, and then any subsequent delivery
5963	5963	25 years unless the PJM Interconnection, LLC applies
5964	5964	26 the Minimum Offer Price Rule to participating
5965	5965
5966	5966
5967	5967
5968	5968
5969	5969
5970	5970	SB2289 - 165 - LRB104 06374 AAS 16410 b
5971	5971
5972	5972
5973	5973	SB2289- 166 -LRB104 06374 AAS 16410 b SB2289 - 166 - LRB104 06374 AAS 16410 b
5974	5974	SB2289 - 166 - LRB104 06374 AAS 16410 b
5975	5975	1 carbon-free energy resources because they supply
5976	5976	2 carbon mitigation credits pursuant to this Section
5977	5977	3 at which time, upon notice by the carbon-free
5978	5978	4 energy resource to the Commission and subject to
5979	5979	5 the Commission's confirmation, the value under
5980	5980	6 this subitem shall be zero, as further described
5981	5981	7 in the carbon mitigation credit procurement plan;
5982	5982	8 and
5983	5983	9 (III) any value of monetized federal tax
5984	5984	10 credits, direct payments, or similar subsidy
5985	5985	11 provided to the carbon-free energy resource from
5986	5986	12 any unit of government that is not already
5987	5987	13 reflected in energy prices.
5988	5988	14 If the price-per-megawatt-hour calculation
5989	5989	15 performed under item (iii) of this subparagraph (C)
5990	5990	16 for a given delivery year results in a net positive
5991	5991	17 value, then the electric utility counterparty to the
5992	5992	18 contract shall multiply such net value by the
5993	5993	19 applicable contract quantity and remit the amount to
5994	5994	20 the supplier.
5995	5995	21 To protect retail customers from retail rate
5996	5996	22 impacts that may arise upon the initiation of carbon
5997	5997	23 policy changes, if the price-per-megawatt-hour
5998	5998	24 calculation performed under item (iii) of this
5999	5999	25 subparagraph (C) for a given delivery year results in
6000	6000	26 a net negative value, then the supplier counterparty
6001	6001
6002	6002
6003	6003
6004	6004
6005	6005
6006	6006	SB2289 - 166 - LRB104 06374 AAS 16410 b
6007	6007
6008	6008
6009	6009	SB2289- 167 -LRB104 06374 AAS 16410 b SB2289 - 167 - LRB104 06374 AAS 16410 b
6010	6010	SB2289 - 167 - LRB104 06374 AAS 16410 b
6011	6011	1 to the contract shall multiply such net value by the
6012	6012	2 applicable contract quantity and remit such amount to
6013	6013	3 the electric utility counterparty. The electric
6014	6014	4 utility shall reflect such amounts remitted by
6015	6015	5 suppliers as a credit on its retail customer bills as
6016	6016	6 soon as practicable.
6017	6017	7 (iv) To ensure that retail customers in Northern
6018	6018	8 Illinois do not pay more for carbon mitigation credits
6019	6019	9 than the value such credits provide, and
6020	6020	10 notwithstanding the provisions of this subsection
6021	6021	11 (d-10), the Agency shall not accept bids for contracts
6022	6022	12 that exceed a customer protection cap equal to the
6023	6023	13 baseline costs of carbon-free energy resources.
6024	6024	14 The baseline costs for the applicable year shall
6025	6025	15 be the following:
6026	6026	16 (I) For the delivery year beginning June 1,
6027	6027	17 2022, the baseline costs shall be an amount equal
6028	6028	18 to $30.30 per megawatt-hour.
6029	6029	19 (II) For the delivery year beginning June 1,
6030	6030	20 2023, the baseline costs shall be an amount equal
6031	6031	21 to $32.50 per megawatt-hour.
6032	6032	22 (III) For the delivery year beginning June 1,
6033	6033	23 2024, the baseline costs shall be an amount equal
6034	6034	24 to $33.43 per megawatt-hour.
6035	6035	25 (IV) For the delivery year beginning June 1,
6036	6036	26 2025, the baseline costs shall be an amount equal
6037	6037
6038	6038
6039	6039
6040	6040
6041	6041
6042	6042	SB2289 - 167 - LRB104 06374 AAS 16410 b
6043	6043
6044	6044
6045	6045	SB2289- 168 -LRB104 06374 AAS 16410 b SB2289 - 168 - LRB104 06374 AAS 16410 b
6046	6046	SB2289 - 168 - LRB104 06374 AAS 16410 b
6047	6047	1 to $33.50 per megawatt-hour.
6048	6048	2 (V) For the delivery year beginning June 1,
6049	6049	3 2026, the baseline costs shall be an amount equal
6050	6050	4 to $34.50 per megawatt-hour.
6051	6051	5 An Environmental Protection Agency consultant
6052	6052	6 forecast, included in a report issued April 14, 2021,
6053	6053	7 projects that a carbon-free energy resource has the
6054	6054	8 opportunity to earn on average approximately $30.28
6055	6055	9 per megawatt-hour, for the sale of energy and capacity
6056	6056	10 during the time period between 2022 and 2027.
6057	6057	11 Therefore, the sale of carbon mitigation credits
6058	6058	12 provides the opportunity to receive an additional
6059	6059	13 amount per megawatt-hour in addition to the projected
6060	6060	14 prices for energy and capacity.
6061	6061	15 Although actual energy and capacity prices may
6062	6062	16 vary from year-to-year, the General Assembly finds
6063	6063	17 that this customer protection cap will help ensure
6064	6064	18 that the cost of carbon mitigation credits will be
6065	6065	19 less than its value, based upon the social cost of
6066	6066	20 carbon identified in the Technical Support Document
6067	6067	21 issued in February 2021 by the U.S. Interagency
6068	6068	22 Working Group on Social Cost of Greenhouse Gases and
6069	6069	23 the PJM Interconnection, LLC carbon dioxide marginal
6070	6070	24 emission rate for 2020, and that a carbon-free energy
6071	6071	25 resource receiving payment for carbon mitigation
6072	6072	26 credits receives no more than necessary to keep those
6073	6073
6074	6074
6075	6075
6076	6076
6077	6077
6078	6078	SB2289 - 168 - LRB104 06374 AAS 16410 b
6079	6079
6080	6080
6081	6081	SB2289- 169 -LRB104 06374 AAS 16410 b SB2289 - 169 - LRB104 06374 AAS 16410 b
6082	6082	SB2289 - 169 - LRB104 06374 AAS 16410 b
6083	6083	1 units in operation.
6084	6084	2 (D) No later than 7 days after the effective date of
6085	6085	3 this amendatory Act of the 102nd General Assembly, the
6086	6086	4 Agency shall publish its proposed carbon mitigation credit
6087	6087	5 procurement plan. The Plan shall provide that winning bids
6088	6088	6 shall be selected by taking into consideration which
6089	6089	7 resources best match public interest criteria that
6090	6090	8 include, but are not limited to, minimizing carbon dioxide
6091	6091	9 emissions that result from electricity consumed in
6092	6092	10 Illinois and minimizing sulfur dioxide, nitrogen oxide,
6093	6093	11 and particulate matter emissions that adversely affect the
6094	6094	12 citizens of this State. The selection of winning bids
6095	6095	13 shall also take into account the incremental environmental
6096	6096	14 benefits resulting from the procurement or procurements,
6097	6097	15 such as any existing environmental benefits that are
6098	6098	16 preserved by a procurement held under this subsection
6099	6099	17 (d-10) and would cease to exist if the procurement were
6100	6100	18 not held, including the preservation of carbon-free energy
6101	6101	19 resources. For those bidders having the same public
6102	6102	20 interest criteria score, the relative ranking of such
6103	6103	21 bidders shall be determined by price. The Plan shall
6104	6104	22 describe in detail how each public interest factor shall
6105	6105	23 be considered and weighted in the bid selection process to
6106	6106	24 ensure that the public interest criteria are applied to
6107	6107	25 the procurement. The Plan shall, to the extent practical
6108	6108	26 and permissible by federal law, ensure that successful
6109	6109
6110	6110
6111	6111
6112	6112
6113	6113
6114	6114	SB2289 - 169 - LRB104 06374 AAS 16410 b
6115	6115
6116	6116
6117	6117	SB2289- 170 -LRB104 06374 AAS 16410 b SB2289 - 170 - LRB104 06374 AAS 16410 b
6118	6118	SB2289 - 170 - LRB104 06374 AAS 16410 b
6119	6119	1 bidders make commercially reasonable efforts to apply for
6120	6120	2 federal tax credits, direct payments, or similar subsidy
6121	6121	3 programs that support carbon-free generation and for which
6122	6122	4 the successful bidder is eligible. Upon publishing of the
6123	6123	5 carbon mitigation credit procurement plan, copies of the
6124	6124	6 plan shall be posted and made publicly available on the
6125	6125	7 Agency's website. All interested parties shall have 7 days
6126	6126	8 following the date of posting to provide comment to the
6127	6127	9 Agency on the plan. All comments shall be posted to the
6128	6128	10 Agency's website. Following the end of the comment period,
6129	6129	11 but no more than 19 days later than the effective date of
6130	6130	12 this amendatory Act of the 102nd General Assembly, the
6131	6131	13 Agency shall revise the plan as necessary based on the
6132	6132	14 comments received and file its carbon mitigation credit
6133	6133	15 procurement plan with the Commission.
6134	6134	16 (E) If the Commission determines that the plan is
6135	6135	17 likely to result in the procurement of cost-effective
6136	6136	18 carbon mitigation credits, then the Commission shall,
6137	6137	19 after notice and hearing and opportunity for comment, but
6138	6138	20 no later than 42 days after the Agency filed the plan,
6139	6139	21 approve the plan or approve it with modification. For
6140	6140	22 purposes of this subsection (d-10), "cost-effective" means
6141	6141	23 carbon mitigation credits that are procured from
6142	6142	24 carbon-free energy resources at prices that are within the
6143	6143	25 limits specified in this paragraph (3). As part of the
6144	6144	26 Commission's review and acceptance or rejection of the
6145	6145
6146	6146
6147	6147
6148	6148
6149	6149
6150	6150	SB2289 - 170 - LRB104 06374 AAS 16410 b
6151	6151
6152	6152
6153	6153	SB2289- 171 -LRB104 06374 AAS 16410 b SB2289 - 171 - LRB104 06374 AAS 16410 b
6154	6154	SB2289 - 171 - LRB104 06374 AAS 16410 b
6155	6155	1 procurement results, the Commission shall, in its public
6156	6156	2 notice of successful bidders:
6157	6157	3 (i) identify how the selected carbon-free energy
6158	6158	4 resources satisfy the public interest criteria
6159	6159	5 described in this paragraph (3) of minimizing carbon
6160	6160	6 dioxide emissions that result from electricity
6161	6161	7 consumed in Illinois and minimizing sulfur dioxide,
6162	6162	8 nitrogen oxide, and particulate matter emissions that
6163	6163	9 adversely affect the citizens of this State;
6164	6164	10 (ii) specifically address how the selection of
6165	6165	11 carbon-free energy resources takes into account the
6166	6166	12 incremental environmental benefits resulting from the
6167	6167	13 procurement, including any existing environmental
6168	6168	14 benefits that are preserved by the procurements held
6169	6169	15 under this amendatory Act of the 102nd General
6170	6170	16 Assembly and would have ceased to exist if the
6171	6171	17 procurements had not been held, such as the
6172	6172	18 preservation of carbon-free energy resources;
6173	6173	19 (iii) quantify the environmental benefit of
6174	6174	20 preserving the carbon-free energy resources procured
6175	6175	21 pursuant to this subsection (d-10), including the
6176	6176	22 following:
6177	6177	23 (I) an assessment value of avoided greenhouse
6178	6178	24 gas emissions measured as the product of the
6179	6179	25 carbon-free energy resources' output over the
6180	6180	26 contract term, using generally accepted
6181	6181
6182	6182
6183	6183
6184	6184
6185	6185
6186	6186	SB2289 - 171 - LRB104 06374 AAS 16410 b
6187	6187
6188	6188
6189	6189	SB2289- 172 -LRB104 06374 AAS 16410 b SB2289 - 172 - LRB104 06374 AAS 16410 b
6190	6190	SB2289 - 172 - LRB104 06374 AAS 16410 b
6191	6191	1 methodologies for the valuation of avoided
6192	6192	2 emissions; and
6193	6193	3 (II) an assessment of costs of replacement
6194	6194	4 with other carbon-free energy resources and
6195	6195	5 renewable energy resources, including wind and
6196	6196	6 photovoltaic generation, based upon an assessment
6197	6197	7 of the prices paid for renewable energy credits
6198	6198	8 through programs and procurements conducted
6199	6199	9 pursuant to subsection (c) of Section 1-75 of this
6200	6200	10 Act, and the additional storage necessary to
6201	6201	11 produce the same or similar capability of matching
6202	6202	12 customer usage patterns.
6203	6203	13 (F) The procurements described in this paragraph (3),
6204	6204	14 including, but not limited to, the execution of all
6205	6205	15 contracts procured, shall be completed no later than
6206	6206	16 December 3, 2021. The procurement and plan approval
6207	6207	17 processes required by this paragraph (3) shall be
6208	6208	18 conducted in conjunction with the procurement and plan
6209	6209	19 approval processes required by Section 16-111.5 of the
6210	6210	20 Public Utilities Act, to the extent practicable. However,
6211	6211	21 the Agency and Commission may, as appropriate, modify the
6212	6212	22 various dates and timelines under this subparagraph and
6213	6213	23 subparagraphs (D) and (E) of this paragraph (3) to meet
6214	6214	24 the December 3, 2021 contract execution deadline.
6215	6215	25 Following the completion of such procurements, and
6216	6216	26 consistent with this paragraph (3), the Agency shall
6217	6217
6218	6218
6219	6219
6220	6220
6221	6221
6222	6222	SB2289 - 172 - LRB104 06374 AAS 16410 b
6223	6223
6224	6224
6225	6225	SB2289- 173 -LRB104 06374 AAS 16410 b SB2289 - 173 - LRB104 06374 AAS 16410 b
6226	6226	SB2289 - 173 - LRB104 06374 AAS 16410 b
6227	6227	1 calculate the payments to be made under each contract in a
6228	6228	2 timely fashion.
6229	6229	3 (F-1) Costs incurred by the electric utility pursuant
6230	6230	4 to a contract authorized by this subsection (d-10) shall
6231	6231	5 be deemed prudently incurred and reasonable in amount, and
6232	6232	6 the electric utility shall be entitled to full cost
6233	6233	7 recovery pursuant to a tariff or tariffs filed with the
6234	6234	8 Commission.
6235	6235	9 (G) The counterparty electric utility shall retire all
6236	6236	10 carbon mitigation credits used to comply with the
6237	6237	11 requirements of this subsection (d-10).
6238	6238	12 (H) If a carbon-free energy resource is sold to
6239	6239	13 another owner, the rights, obligations, and commitments
6240	6240	14 under this subsection (d-10) shall continue to the
6241	6241	15 subsequent owner.
6242	6242	16 (I) This subsection (d-10) shall become inoperative on
6243	6243	17 January 1, 2028.
6244	6244	18 (e) The draft procurement plans are subject to public
6245	6245	19 comment, as required by Section 16-111.5 of the Public
6246	6246	20 Utilities Act.
6247	6247	21 (f) The Agency shall submit the final procurement plan to
6248	6248	22 the Commission. The Agency shall revise a procurement plan if
6249	6249	23 the Commission determines that it does not meet the standards
6250	6250	24 set forth in Section 16-111.5 of the Public Utilities Act.
6251	6251	25 (g) The Agency shall assess fees to each affected utility
6252	6252	26 to recover the costs incurred in preparation of the annual
6253	6253
6254	6254
6255	6255
6256	6256
6257	6257
6258	6258	SB2289 - 173 - LRB104 06374 AAS 16410 b
6259	6259
6260	6260
6261	6261	SB2289- 174 -LRB104 06374 AAS 16410 b SB2289 - 174 - LRB104 06374 AAS 16410 b
6262	6262	SB2289 - 174 - LRB104 06374 AAS 16410 b
6263	6263	1 procurement plan for the utility.
6264	6264	2 (h) The Agency shall assess fees to each bidder to recover
6265	6265	3 the costs incurred in connection with a competitive
6266	6266	4 procurement process.
6267	6267	5 (i) A renewable energy credit, carbon emission credit,
6268	6268	6 zero emission credit, or carbon mitigation credit can only be
6269	6269	7 used once to comply with a single portfolio or other standard
6270	6270	8 as set forth in subsection (c), subsection (d), or subsection
6271	6271	9 (d-5) of this Section, respectively. A renewable energy
6272	6272	10 credit, carbon emission credit, zero emission credit, or
6273	6273	11 carbon mitigation credit cannot be used to satisfy the
6274	6274	12 requirements of more than one standard. If more than one type
6275	6275	13 of credit is issued for the same megawatt hour of energy, only
6276	6276	14 one credit can be used to satisfy the requirements of a single
6277	6277	15 standard. After such use, the credit must be retired together
6278	6278	16 with any other credits issued for the same megawatt hour of
6279	6279	17 energy.
6280	6280	18 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
6281	6281	19 103-580, eff. 12-8-23.)
6282	6282	20 Section 10. The Public Utilities Act is amended by
6283	6283	21 changing Section 16-115D as follows:
6284	6284	22 (220 ILCS 5/16-115D)
6285	6285	23 Sec. 16-115D. Renewable portfolio standard for alternative
6286	6286	24 retail electric suppliers and electric utilities operating
6287	6287
6288	6288
6289	6289
6290	6290
6291	6291
6292	6292	SB2289 - 174 - LRB104 06374 AAS 16410 b
6293	6293
6294	6294
6295	6295	SB2289- 175 -LRB104 06374 AAS 16410 b SB2289 - 175 - LRB104 06374 AAS 16410 b
6296	6296	SB2289 - 175 - LRB104 06374 AAS 16410 b
6297	6297	1 outside their service territories.
6298	6298	2 (a) An alternative retail electric supplier shall be
6299	6299	3 responsible for procuring cost-effective renewable energy
6300	6300	4 resources as required under item (5) of subsection (d) of
6301	6301	5 Section 16-115 of this Act as outlined herein:
6302	6302	6 (1) The definition of renewable energy resources
6303	6303	7 contained in Section 1-10 of the Illinois Power Agency Act
6304	6304	8 applies to all renewable energy resources required to be
6305	6305	9 procured by alternative retail electric suppliers.
6306	6306	10 (2) Through May 31, 2017, the quantity of renewable
6307	6307	11 energy resources shall be measured as a percentage of the
6308	6308	12 actual amount of metered electricity (megawatt-hours)
6309	6309	13 delivered by the alternative retail electric supplier to
6310	6310	14 Illinois retail customers during the 12-month period June
6311	6311	15 1 through May 31, commencing June 1, 2009, and the
6312	6312	16 comparable 12-month period in each year thereafter except
6313	6313	17 as provided in item (6) of this subsection (a).
6314	6314	18 (3) Through May 31, 2017, the quantity of renewable
6315	6315	19 energy resources shall be in amounts at least equal to the
6316	6316	20 annual percentages set forth in item (1) of subsection (c)
6317	6317	21 of Section 1-75 of the Illinois Power Agency Act. At least
6318	6318	22 60% of the renewable energy resources procured pursuant to
6319	6319	23 items (1) and (3) of subsection (b) of this Section shall
6320	6320	24 come from wind generation and, starting June 1, 2015, at
6321	6321	25 least 6% of the renewable energy resources procured
6322	6322	26 pursuant to items (1) and (3) of subsection (b) of this
6323	6323
6324	6324
6325	6325
6326	6326
6327	6327
6328	6328	SB2289 - 175 - LRB104 06374 AAS 16410 b
6329	6329
6330	6330
6331	6331	SB2289- 176 -LRB104 06374 AAS 16410 b SB2289 - 176 - LRB104 06374 AAS 16410 b
6332	6332	SB2289 - 176 - LRB104 06374 AAS 16410 b
6333	6333	1 Section shall come from solar photovoltaics. If, in any
6334	6334	2 given year, an alternative retail electric supplier does
6335	6335	3 not purchase at least these levels of renewable energy
6336	6336	4 resources, then the alternative retail electric supplier
6337	6337	5 shall make alternative compliance payments, as described
6338	6338	6 in subsection (d) of this Section.
6339	6339	7 (3.5) For the delivery year commencing June 1, 2017,
6340	6340	8 the quantity of renewable energy resources shall be at
6341	6341	9 least 13.0% of the uncovered amount of metered electricity
6342	6342	10 (megawatt-hours) delivered by the alternative retail
6343	6343	11 electric supplier to Illinois retail customers during the
6344	6344	12 delivery year, which uncovered amount shall equal 50% of
6345	6345	13 such metered electricity delivered by the alternative
6346	6346	14 retail electric supplier. For the delivery year commencing
6347	6347	15 June 1, 2018, the quantity of renewable energy resources
6348	6348	16 shall be at least 14.5% of the uncovered amount of metered
6349	6349	17 electricity (megawatt-hours) delivered by the alternative
6350	6350	18 retail electric supplier to Illinois retail customers
6351	6351	19 during the delivery year, which uncovered amount shall
6352	6352	20 equal 25% of such metered electricity delivered by the
6353	6353	21 alternative retail electric supplier. At least 32% of the
6354	6354	22 renewable energy resources procured by the alternative
6355	6355	23 retail electric supplier for its uncovered portion under
6356	6356	24 this paragraph (3.5) shall come from wind or photovoltaic
6357	6357	25 generation. The renewable energy resources procured under
6358	6358	26 this paragraph (3.5) shall not include any resources from
6359	6359
6360	6360
6361	6361
6362	6362
6363	6363
6364	6364	SB2289 - 176 - LRB104 06374 AAS 16410 b
6365	6365
6366	6366
6367	6367	SB2289- 177 -LRB104 06374 AAS 16410 b SB2289 - 177 - LRB104 06374 AAS 16410 b
6368	6368	SB2289 - 177 - LRB104 06374 AAS 16410 b
6369	6369	1 a facility whose costs were being recovered through rates
6370	6370	2 regulated by any state or states on or after January 1,
6371	6371	3 2017.
6372	6372	4 (4) The quantity and source of renewable energy
6373	6373	5 resources shall be independently verified through the PJM
6374	6374	6 Environmental Information System Generation Attribute
6375	6375	7 Tracking System (PJM-GATS) or the Midwest Renewable Energy
6376	6376	8 Tracking System (M-RETS), which shall document the
6377	6377	9 location of generation, resource type, month, and year of
6378	6378	10 generation for all qualifying renewable energy resources
6379	6379	11 that an alternative retail electric supplier uses to
6380	6380	12 comply with this Section. No later than June 1, 2009, the
6381	6381	13 Illinois Power Agency shall provide PJM-GATS, M-RETS, and
6382	6382	14 alternative retail electric suppliers with all information
6383	6383	15 necessary to identify resources located in Illinois,
6384	6384	16 within states that adjoin Illinois or within portions of
6385	6385	17 the PJM and MISO footprint in the United States that
6386	6386	18 qualify under the definition of renewable energy resources
6387	6387	19 in Section 1-10 of the Illinois Power Agency Act for
6388	6388	20 compliance with this Section 16-115D. Alternative retail
6389	6389	21 electric suppliers shall not be subject to the
6390	6390	22 requirements in item (3) of subsection (c) of Section 1-75
6391	6391	23 of the Illinois Power Agency Act.
6392	6392	24 (5) All renewable energy credits used to comply with
6393	6393	25 this Section shall be permanently retired.
6394	6394	26 (6) The required procurement of renewable energy
6395	6395
6396	6396
6397	6397
6398	6398
6399	6399
6400	6400	SB2289 - 177 - LRB104 06374 AAS 16410 b
6401	6401
6402	6402
6403	6403	SB2289- 178 -LRB104 06374 AAS 16410 b SB2289 - 178 - LRB104 06374 AAS 16410 b
6404	6404	SB2289 - 178 - LRB104 06374 AAS 16410 b
6405	6405	1 resources by an alternative retail electric supplier shall
6406	6406	2 apply to all metered electricity delivered to Illinois
6407	6407	3 retail customers by the alternative retail electric
6408	6408	4 supplier pursuant to contracts executed or extended after
6409	6409	5 March 15, 2009.
6410	6410	6 (b) Compliance obligations.
6411	6411	7 (1) Through May 31, 2017, an alternative retail
6412	6412	8 electric supplier shall comply with the renewable energy
6413	6413	9 portfolio standards by making an alternative compliance
6414	6414	10 payment, as described in subsection (d) of this Section,
6415	6415	11 to cover at least one-half of the alternative retail
6416	6416	12 electric supplier's compliance obligation for the period
6417	6417	13 prior to June 1, 2017.
6418	6418	14 (2) For the delivery years beginning June 1, 2017 and
6419	6419	15 June 1, 2018, an alternative retail electric supplier need
6420	6420	16 not make any alternative compliance payment to meet any
6421	6421	17 portion of its compliance obligation, as set forth in
6422	6422	18 paragraph (3.5) of subsection (a) of this Section.
6423	6423	19 (3) An alternative retail electric supplier shall use
6424	6424	20 any one or combination of the following means to cover the
6425	6425	21 remainder of the alternative retail electric supplier's
6426	6426	22 compliance obligation, as set forth in paragraphs (3) and
6427	6427	23 (3.5) of subsection (a) of this Section, not covered by an
6428	6428	24 alternative compliance payment made under paragraphs (1)
6429	6429	25 and (2) of this subsection (b) of this Section:
6430	6430	26 (A) Generating electricity using renewable energy
6431	6431
6432	6432
6433	6433
6434	6434
6435	6435
6436	6436	SB2289 - 178 - LRB104 06374 AAS 16410 b
6437	6437
6438	6438
6439	6439	SB2289- 179 -LRB104 06374 AAS 16410 b SB2289 - 179 - LRB104 06374 AAS 16410 b
6440	6440	SB2289 - 179 - LRB104 06374 AAS 16410 b
6441	6441	1 resources identified pursuant to item (4) of
6442	6442	2 subsection (a) of this Section.
6443	6443	3 (B) Purchasing electricity generated using
6444	6444	4 renewable energy resources identified pursuant to item
6445	6445	5 (4) of subsection (a) of this Section through an
6446	6446	6 energy contract.
6447	6447	7 (C) Purchasing renewable energy credits from
6448	6448	8 renewable energy resources identified pursuant to item
6449	6449	9 (4) of subsection (a) of this Section.
6450	6450	10 (D) Making an alternative compliance payment as
6451	6451	11 described in subsection (d) of this Section.
6452	6452	12 (c) Use of renewable energy credits.
6453	6453	13 (1) Renewable energy credits that are not used by an
6454	6454	14 alternative retail electric supplier to comply with a
6455	6455	15 renewable portfolio standard in a compliance year may be
6456	6456	16 banked and carried forward up to 2 12-month compliance
6457	6457	17 periods after the compliance period in which the credit
6458	6458	18 was generated for the purpose of complying with a
6459	6459	19 renewable portfolio standard in those 2 subsequent
6460	6460	20 compliance periods. For the 2009-2010 and 2010-2011
6461	6461	21 compliance periods, an alternative retail electric
6462	6462	22 supplier may use renewable credits generated after
6463	6463	23 December 31, 2008 and before June 1, 2009 to comply with
6464	6464	24 this Section.
6465	6465	25 (2) An alternative retail electric supplier is
6466	6466	26 responsible for demonstrating that a renewable energy
6467	6467
6468	6468
6469	6469
6470	6470
6471	6471
6472	6472	SB2289 - 179 - LRB104 06374 AAS 16410 b
6473	6473
6474	6474
6475	6475	SB2289- 180 -LRB104 06374 AAS 16410 b SB2289 - 180 - LRB104 06374 AAS 16410 b
6476	6476	SB2289 - 180 - LRB104 06374 AAS 16410 b
6477	6477	1 credit used to comply with a renewable portfolio standard
6478	6478	2 is derived from a renewable energy resource and that the
6479	6479	3 alternative retail electric supplier has not used, traded,
6480	6480	4 sold, or otherwise transferred the credit.
6481	6481	5 (3) The same renewable energy credit may be used by an
6482	6482	6 alternative retail electric supplier to comply with a
6483	6483	7 federal renewable portfolio standard and a renewable
6484	6484	8 portfolio standard established under this Act. An
6485	6485	9 alternative retail electric supplier that uses a renewable
6486	6486	10 energy credit to comply with a renewable portfolio
6487	6487	11 standard imposed by any other state may not use the same
6488	6488	12 credit to comply with a renewable portfolio standard
6489	6489	13 established under this Act.
6490	6490	14 (d) Alternative compliance payments.
6491	6491	15 (1) The Commission shall establish and post on its
6492	6492	16 website, within 5 business days after entering an order
6493	6493	17 approving a procurement plan pursuant to Section 1-75 of
6494	6494	18 the Illinois Power Agency Act, maximum alternative
6495	6495	19 compliance payment rates, expressed on a per kilowatt-hour
6496	6496	20 basis, that will be applicable in the first compliance
6497	6497	21 period following the plan approval. A separate maximum
6498	6498	22 alternative compliance payment rate shall be established
6499	6499	23 for the service territory of each electric utility that is
6500	6500	24 subject to subsection (c) of Section 1-75 of the Illinois
6501	6501	25 Power Agency Act. Each maximum alternative compliance
6502	6502	26 payment rate shall be equal to the maximum allowable
6503	6503
6504	6504
6505	6505
6506	6506
6507	6507
6508	6508	SB2289 - 180 - LRB104 06374 AAS 16410 b
6509	6509
6510	6510
6511	6511	SB2289- 181 -LRB104 06374 AAS 16410 b SB2289 - 181 - LRB104 06374 AAS 16410 b
6512	6512	SB2289 - 181 - LRB104 06374 AAS 16410 b
6513	6513	1 annual estimated average net increase due to the costs of
6514	6514	2 the utility's purchase of renewable energy resources
6515	6515	3 included in the amounts paid by eligible retail customers
6516	6516	4 in connection with electric service, as described in item
6517	6517	5 (2) of subsection (c) of Section 1-75 of the Illinois
6518	6518	6 Power Agency Act for the compliance period, and as
6519	6519	7 established in the approved procurement plan. Following
6520	6520	8 each procurement event through which renewable energy
6521	6521	9 resources are purchased for one or more of these utilities
6522	6522	10 for the compliance period, the Commission shall establish
6523	6523	11 and post on its website estimates of the alternative
6524	6524	12 compliance payment rates, expressed on a per kilowatt-hour
6525	6525	13 basis, that shall apply for that compliance period.
6526	6526	14 Posting of the estimates shall occur no later than 10
6527	6527	15 business days following the procurement event, however,
6528	6528	16 the Commission shall not be required to establish and post
6529	6529	17 such estimates more often than once per calendar month. By
6530	6530	18 July 1 of each year, the Commission shall establish and
6531	6531	19 post on its website the actual alternative compliance
6532	6532	20 payment rates for the preceding compliance year. For
6533	6533	21 compliance years beginning prior to June 1, 2014, each
6534	6534	22 alternative compliance payment rate shall be equal to the
6535	6535	23 total amount of dollars that the utility contracted to
6536	6536	24 spend on renewable resources, excepting the additional
6537	6537	25 incremental cost attributable to solar resources, for the
6538	6538	26 compliance period divided by the forecasted load of
6539	6539
6540	6540
6541	6541
6542	6542
6543	6543
6544	6544	SB2289 - 181 - LRB104 06374 AAS 16410 b
6545	6545
6546	6546
6547	6547	SB2289- 182 -LRB104 06374 AAS 16410 b SB2289 - 182 - LRB104 06374 AAS 16410 b
6548	6548	SB2289 - 182 - LRB104 06374 AAS 16410 b
6549	6549	1 eligible retail customers, at the customers' meters, as
6550	6550	2 previously established in the Commission-approved
6551	6551	3 procurement plan for that compliance year. For compliance
6552	6552	4 years commencing on or after June 1, 2014, each
6553	6553	5 alternative compliance payment rate shall be equal to the
6554	6554	6 total amount of dollars that the utility contracted to
6555	6555	7 spend on all renewable resources for the compliance period
6556	6556	8 divided by the forecasted load of retail customers for
6557	6557	9 which the utility is procuring renewable energy resources
6558	6558	10 in a given delivery year, at the customers' meters, as
6559	6559	11 previously established in the Commission-approved
6560	6560	12 procurement plan for that compliance year. The actual
6561	6561	13 alternative compliance payment rates may not exceed the
6562	6562	14 maximum alternative compliance payment rates established
6563	6563	15 for the compliance period. For purposes of this subsection
6564	6564	16 (d), the term "eligible retail customers" has the same
6565	6565	17 meaning as found in Section 16-111.5 of this Act.
6566	6566	18 (2) In any given compliance year, an alternative
6567	6567	19 retail electric supplier may elect to use alternative
6568	6568	20 compliance payments to comply with all or a part of the
6569	6569	21 applicable renewable portfolio standard. In the event that
6570	6570	22 an alternative retail electric supplier elects to make
6571	6571	23 alternative compliance payments to comply with all or a
6572	6572	24 part of the applicable renewable portfolio standard, such
6573	6573	25 payments shall be made by September 1, 2010 for the period
6574	6574	26 of June 1, 2009 to May 1, 2010 and by September 1 of each
6575	6575
6576	6576
6577	6577
6578	6578
6579	6579
6580	6580	SB2289 - 182 - LRB104 06374 AAS 16410 b
6581	6581
6582	6582
6583	6583	SB2289- 183 -LRB104 06374 AAS 16410 b SB2289 - 183 - LRB104 06374 AAS 16410 b
6584	6584	SB2289 - 183 - LRB104 06374 AAS 16410 b
6585	6585	1 year thereafter for the subsequent compliance period, in
6586	6586	2 the manner and form as determined by the Commission. Any
6587	6587	3 election by an alternative retail electric supplier to use
6588	6588	4 alternative compliance payments is subject to review by
6589	6589	5 the Commission under subsection (e) of this Section.
6590	6590	6 (3) An alternative retail electric supplier's
6591	6591	7 alternative compliance payments shall be computed
6592	6592	8 separately for each electric utility's service territory
6593	6593	9 within which the alternative retail electric supplier
6594	6594	10 provided retail service during the compliance period,
6595	6595	11 provided that the electric utility was subject to
6596	6596	12 subsection (c) of Section 1-75 of the Illinois Power
6597	6597	13 Agency Act. For each service territory, the alternative
6598	6598	14 retail electric supplier's alternative compliance payment
6599	6599	15 shall be equal to (i) the actual alternative compliance
6600	6600	16 payment rate established in item (1) of this subsection
6601	6601	17 (d), multiplied by (ii) the actual amount of metered
6602	6602	18 electricity delivered by the alternative retail electric
6603	6603	19 supplier to retail customers for which the supplier has a
6604	6604	20 compliance obligation within the service territory during
6605	6605	21 the compliance period, multiplied by (iii) the result of
6606	6606	22 one minus the ratios of the quantity of renewable energy
6607	6607	23 resources used by the alternative retail electric supplier
6608	6608	24 to comply with the requirements of this Section within the
6609	6609	25 service territory to the product of the percentage of
6610	6610	26 renewable energy resources required under item (3) or
6611	6611
6612	6612
6613	6613
6614	6614
6615	6615
6616	6616	SB2289 - 183 - LRB104 06374 AAS 16410 b
6617	6617
6618	6618
6619	6619	SB2289- 184 -LRB104 06374 AAS 16410 b SB2289 - 184 - LRB104 06374 AAS 16410 b
6620	6620	SB2289 - 184 - LRB104 06374 AAS 16410 b
6621	6621	1 (3.5) of subsection (a) of this Section and the actual
6622	6622	2 amount of metered electricity delivered by the alternative
6623	6623	3 retail electrical supplier to retail customers for which
6624	6624	4 the supplier has a compliance obligation within the
6625	6625	5 service territory during the compliance period.
6626	6626	6 (4) Through May 31, 2017, all alternative compliance
6627	6627	7 payments by alternative retail electric suppliers shall be
6628	6628	8 deposited in the Illinois Power Agency Renewable Energy
6629	6629	9 Resources Fund and used to purchase renewable energy
6630	6630	10 credits, in accordance with Section 1-56 of the Illinois
6631	6631	11 Power Agency Act. Beginning April 1, 2012 and by April 1 of
6632	6632	12 each year thereafter, the Illinois Power Agency shall
6633	6633	13 submit an annual report to the General Assembly, the
6634	6634	14 Commission, and alternative retail electric suppliers that
6635	6635	15 shall include, but not be limited to:
6636	6636	16 (A) the total amount of alternative compliance
6637	6637	17 payments received in aggregate from alternative retail
6638	6638	18 electric suppliers by planning year for all previous
6639	6639	19 planning years in which the alternative compliance
6640	6640	20 payment was in effect;
6641	6641	21 (B) the amount of those payments utilized to
6642	6642	22 purchased renewable energy credits itemized by the
6643	6643	23 date of each procurement in which the payments were
6644	6644	24 utilized; and
6645	6645	25 (C) the unused and remaining balance in the Agency
6646	6646	26 Renewable Energy Resources Fund attributable to those
6647	6647
6648	6648
6649	6649
6650	6650
6651	6651
6652	6652	SB2289 - 184 - LRB104 06374 AAS 16410 b
6653	6653
6654	6654
6655	6655	SB2289- 185 -LRB104 06374 AAS 16410 b SB2289 - 185 - LRB104 06374 AAS 16410 b
6656	6656	SB2289 - 185 - LRB104 06374 AAS 16410 b
6657	6657	1 payments.
6658	6658	2 (4.5) Beginning with the delivery year commencing June
6659	6659	3 1, 2017, all alternative compliance payments by
6660	6660	4 alternative retail electric suppliers shall be remitted to
6661	6661	5 the applicable electric utility. To facilitate this
6662	6662	6 remittance, each electric utility shall file a tariff with
6663	6663	7 the Commission no later than 30 days following the
6664	6664	8 effective date of this amendatory Act of the 99th General
6665	6665	9 Assembly, which the Commission shall approve, after notice
6666	6666	10 and hearing, no later than 45 days after its filing. The
6667	6667	11 Illinois Power Agency shall use such payments to increase
6668	6668	12 the amount of renewable energy resources otherwise to be
6669	6669	13 procured under subsection (c) of Section 1-75 of the
6670	6670	14 Illinois Power Agency Act.
6671	6671	15 (5) The Commission, in consultation with the Illinois
6672	6672	16 Power Agency, shall establish a process or proceeding to
6673	6673	17 consider the impact of a federal renewable portfolio
6674	6674	18 standard, if enacted, on the operation of the alternative
6675	6675	19 compliance mechanism, which shall include, but not be
6676	6676	20 limited to, developing, to the extent permitted by the
6677	6677	21 applicable federal statute, an appropriate methodology to
6678	6678	22 apportion renewable energy credits retired as a result of
6679	6679	23 alternative compliance payments made in accordance with
6680	6680	24 this Section. The Commission shall commence any such
6681	6681	25 process or proceeding within 35 days after enactment of a
6682	6682	26 federal renewable portfolio standard.
6683	6683
6684	6684
6685	6685
6686	6686
6687	6687
6688	6688	SB2289 - 185 - LRB104 06374 AAS 16410 b
6689	6689
6690	6690
6691	6691	SB2289- 186 -LRB104 06374 AAS 16410 b SB2289 - 186 - LRB104 06374 AAS 16410 b
6692	6692	SB2289 - 186 - LRB104 06374 AAS 16410 b
6693	6693	1 (e) Each alternative retail electric supplier shall, by
6694	6694	2 September 1, 2010 and by September 1 of each year thereafter,
6695	6695	3 prepare and submit to the Commission a report, in a format to
6696	6696	4 be specified by the Commission, that provides information
6697	6697	5 certifying compliance by the alternative retail electric
6698	6698	6 supplier with this Section, including copies of all PJM-GATS
6699	6699	7 and M-RETS reports, and documentation relating to banking,
6700	6700	8 retiring renewable energy credits, and any other information
6701	6701	9 that the Commission determines necessary to ensure compliance
6702	6702	10 with this Section.
6703	6703	11 An alternative retail electric supplier may file
6704	6704	12 commercially or financially sensitive information or trade
6705	6705	13 secrets with the Commission as provided under the rules of the
6706	6706	14 Commission. To be filed confidentially, the information shall
6707	6707	15 be accompanied by an affidavit that sets forth both the
6708	6708	16 reasons for the confidentiality and a public synopsis of the
6709	6709	17 information.
6710	6710	18 (f) The Commission may initiate a contested case to review
6711	6711	19 allegations that the alternative retail electric supplier has
6712	6712	20 violated this Section, including an order issued or rule
6713	6713	21 promulgated under this Section. In any such proceeding, the
6714	6714	22 alternative retail electric supplier shall have the burden of
6715	6715	23 proof. If the Commission finds, after notice and hearing, that
6716	6716	24 an alternative retail electric supplier has violated this
6717	6717	25 Section, then the Commission shall issue an order requiring
6718	6718	26 the alternative retail electric supplier to:
6719	6719
6720	6720
6721	6721
6722	6722
6723	6723
6724	6724	SB2289 - 186 - LRB104 06374 AAS 16410 b
6725	6725
6726	6726
6727	6727	SB2289- 187 -LRB104 06374 AAS 16410 b SB2289 - 187 - LRB104 06374 AAS 16410 b
6728	6728	SB2289 - 187 - LRB104 06374 AAS 16410 b
6729	6729	1 (1) immediately comply with this Section; and
6730	6730	2 (2) if the violation involves a failure to procure the
6731	6731	3 requisite quantity of renewable energy resources or pay
6732	6732	4 the applicable alternative compliance payment by the
6733	6733	5 annual deadline, the Commission shall require the
6734	6734	6 alternative retail electric supplier to double the
6735	6735	7 applicable alternative compliance payment that would
6736	6736	8 otherwise be required to bring the alternative retail
6737	6737	9 electric supplier into compliance with this Section.
6738	6738	10 If an alternative retail electric supplier fails to comply
6739	6739	11 with the renewable energy resource portfolio requirement in
6740	6740	12 this Section more than once in a 5-year period, then the
6741	6741	13 Commission shall revoke the alternative electric supplier's
6742	6742	14 certificate of service authority. The Commission shall not
6743	6743	15 accept an application for a certificate of service authority
6744	6744	16 from an alternative retail electric supplier that has lost
6745	6745	17 certification under this subsection (f), or any corporate
6746	6746	18 affiliate thereof, for at least one year after the date of
6747	6747	19 revocation.
6748	6748	20 (g) All of the provisions of this Section apply to
6749	6749	21 electric utilities operating outside their service area except
6750	6750	22 under item (2) of subsection (a) of this Section the quantity
6751	6751	23 of renewable energy resources shall be measured as a
6752	6752	24 percentage of the actual amount of electricity
6753	6753	25 (megawatt-hours) supplied in the State outside of the
6754	6754	26 utility's service territory during the 12-month period June 1
6755	6755
6756	6756
6757	6757
6758	6758
6759	6759
6760	6760	SB2289 - 187 - LRB104 06374 AAS 16410 b
6761	6761
6762	6762
6763	6763	SB2289- 188 -LRB104 06374 AAS 16410 b SB2289 - 188 - LRB104 06374 AAS 16410 b
6764	6764	SB2289 - 188 - LRB104 06374 AAS 16410 b
6765	6765	1 through May 31, commencing June 1, 2009, and the comparable
6766	6766	2 12-month period in each year thereafter except as provided in
6767	6767	3 item (6) of subsection (a) of this Section.
6768	6768	4 If any such utility fails to procure the requisite
6769	6769	5 quantity of renewable energy resources by the annual deadline,
6770	6770	6 then the Commission shall require the utility to double the
6771	6771	7 alternative compliance payment that would otherwise be
6772	6772	8 required to bring the utility into compliance with this
6773	6773	9 Section.
6774	6774	10 If any such utility fails to comply with the renewable
6775	6775	11 energy resource portfolio requirement in this Section more
6776	6776	12 than once in a 5-year period, then the Commission shall order
6777	6777	13 the utility to cease all sales outside of the utility's
6778	6778	14 service territory for a period of at least one year.
6779	6779	15 (h) The provisions of this Section and the provisions of
6780	6780	16 subsection (d) of Section 16-115 of this Act relating to
6781	6781	17 procurement of renewable energy resources, and the provisions
6782	6782	18 of paragraph (6) of subsection (c) of Section 1-75 of the
6783	6783	19 Illinois Power Agency Act relating to the payments by retail
6784	6784	20 customers of a utility for the purpose of recovering the
6785	6785	21 utility's costs for procuring renewable energy credits, shall
6786	6786	22 not apply to an alternative retail electric supplier, or the
6787	6787	23 retail customers of an alternative retail electric supplier,
6788	6788	24 that operates a combined heat and power system in this State or
6789	6789	25 that has a corporate affiliate that operates such a combined
6790	6790	26 heat and power system in this State that supplies electricity
6791	6791
6792	6792
6793	6793
6794	6794
6795	6795
6796	6796	SB2289 - 188 - LRB104 06374 AAS 16410 b
6797	6797
6798	6798
6799	6799	SB2289- 189 -LRB104 06374 AAS 16410 b SB2289 - 189 - LRB104 06374 AAS 16410 b
6800	6800	SB2289 - 189 - LRB104 06374 AAS 16410 b
6801	6801	1 primarily to or for the benefit of: (i) facilities owned by the
6802	6802	2 supplier, its subsidiary, or other corporate affiliate; (ii)
6803	6803	3 facilities electrically integrated with the electrical system
6804	6804	4 of facilities owned by the supplier, its subsidiary, or other
6805	6805	5 corporate affiliate; or (iii) facilities that are adjacent to
6806	6806	6 the site on which the combined heat and power system is
6807	6807	7 located.
6808	6808	8 (i) The obligations of alternative retail electric
6809	6809	9 suppliers and electric utilities operating outside their
6810	6810	10 service territories to procure renewable energy resources,
6811	6811	11 make alternative compliance payments, and file annual reports,
6812	6812	12 and the obligations of the Commission to determine and post
6813	6813	13 alternative compliance payment rates, shall terminate after
6814	6814	14 May 31, 2019, provided that alternative retail electric
6815	6815	15 suppliers and electric utilities operating outside their
6816	6816	16 service territories shall be obligated to make all alternative
6817	6817	17 compliance payments that they were obligated to pay for
6818	6818	18 periods through and including May 31, 2019, but were not paid
6819	6819	19 as of that date. The Commission shall continue to enforce the
6820	6820	20 payment of unpaid alternative compliance payments in
6821	6821	21 accordance with subsections (f) and (g) of this Section. All
6822	6822	22 alternative compliance payments made after May 31, 2016 shall
6823	6823	23 be remitted to the applicable electric utility and used to
6824	6824	24 purchase renewable energy credits, in accordance with Section
6825	6825	25 1-75 of the Illinois Power Agency Act.
6826	6826	26 This subsection (i) is intended to accommodate the
6827	6827
6828	6828
6829	6829
6830	6830
6831	6831
6832	6832	SB2289 - 189 - LRB104 06374 AAS 16410 b
6833	6833
6834	6834
6835	6835	SB2289- 190 -LRB104 06374 AAS 16410 b SB2289 - 190 - LRB104 06374 AAS 16410 b
6836	6836	SB2289 - 190 - LRB104 06374 AAS 16410 b
6837	6837	1 transition to the procurement of renewable energy resources
6838	6838	2 for all retail customers in the amounts specified under
6839	6839	3 subsection (c) of Section 1-75 of the Illinois Power Agency
6840	6840	4 Act and Section 16-111.5 of this Act, including but not
6841	6841	5 limited to the transition to a single charge applicable to all
6842	6842	6 retail customers to recover the costs of these resources. Each
6843	6843	7 alternative retail electric supplier shall certify in its
6844	6844	8 annual reports filed pursuant to subsection (e) of this
6845	6845	9 Section after May 31, 2019, that its retail customers are not
6846	6846	10 paying the costs of alternative compliance payments or
6847	6847	11 renewable energy resources that the alternative retail
6848	6848	12 electric supplier is not required to remit or purchase under
6849	6849	13 this Section. The Commission shall have the authority to
6850	6850	14 initiate an emergency rulemaking to adopt rules regarding such
6851	6851	15 certification.
6852	6852	16 (Source: P.A. 99-906, eff. 6-1-17.)
6853	6853
6854	6854
6855	6855
6856	6856
6857	6857
6858	6858	SB2289 - 190 - LRB104 06374 AAS 16410 b