Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2497 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2497 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Power Agency Act. Adds and modifies definitions of terms. Authorizes the Illinois Power Agency to conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve certain energy storage standards; to request, review, and accept proposals; to execute contracts; and to procure energy storage credits. Requires the Agency to develop a storage procurement plan. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Makes other changes. Amends the Public Utilities Act. Requires each electric utility to demonstrate sufficient resources devoted to interconnection. Requires the Illinois Commerce Commission to perform specified actions regarding interconnection within 90 days after the effective date of the amendatory Act. In a provision regarding virtual power plant programs, requires each electric utility serving more than 300,000 customers as of January 1, 2023 to propose an initial tariff within 60 days after the effective date of the amendatory Act. In a provision regarding peak remediation programs, requires each electric utility serving more than 300,000 retail customers as of January 1, 2023 to propose an initial tariff within 90 days after the effective date of the amendatory Act. Requires the Commission to establish a working group with relevant stakeholders to develop a stand-alone energy storage distribution deployment program. Provides that, beginning on June 1, 2024, the electric utility shall be entitled to recover through tariffed charges all of the costs associated with the purchase of energy storage credits to meet specified energy storage standards. Requires the Agency to prepare an energy storage resources procurement plan for the procurement of energy storage credits. Requires the Commission to establish an Office of Interconnection and Renewable Development, which shall (i) actively seek input from all interested parties and shall develop a thorough understanding and critical analyses of the tools and techniques used to promote development and remove barriers to development of the projects and devices, and (ii) monitor interconnection between electric utilities and applicants for interconnection and interconnection customers. Sets forth reporting requirements for the Office. Makes other changes. Effective immediately. LRB104 12224 JDS 22330 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2497 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Power Agency Act. Adds and modifies definitions of terms. Authorizes the Illinois Power Agency to conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve certain energy storage standards; to request, review, and accept proposals; to execute contracts; and to procure energy storage credits. Requires the Agency to develop a storage procurement plan. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Makes other changes. Amends the Public Utilities Act. Requires each electric utility to demonstrate sufficient resources devoted to interconnection. Requires the Illinois Commerce Commission to perform specified actions regarding interconnection within 90 days after the effective date of the amendatory Act. In a provision regarding virtual power plant programs, requires each electric utility serving more than 300,000 customers as of January 1, 2023 to propose an initial tariff within 60 days after the effective date of the amendatory Act. In a provision regarding peak remediation programs, requires each electric utility serving more than 300,000 retail customers as of January 1, 2023 to propose an initial tariff within 90 days after the effective date of the amendatory Act. Requires the Commission to establish a working group with relevant stakeholders to develop a stand-alone energy storage distribution deployment program. Provides that, beginning on June 1, 2024, the electric utility shall be entitled to recover through tariffed charges all of the costs associated with the purchase of energy storage credits to meet specified energy storage standards. Requires the Agency to prepare an energy storage resources procurement plan for the procurement of energy storage credits. Requires the Commission to establish an Office of Interconnection and Renewable Development, which shall (i) actively seek input from all interested parties and shall develop a thorough understanding and critical analyses of the tools and techniques used to promote development and remove barriers to development of the projects and devices, and (ii) monitor interconnection between electric utilities and applicants for interconnection and interconnection customers. Sets forth reporting requirements for the Office. Makes other changes. Effective immediately. LRB104 12224 JDS 22330 b LRB104 12224 JDS 22330 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2497 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Illinois Power Agency Act. Adds and modifies definitions of terms. Authorizes the Illinois Power Agency to conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve certain energy storage standards; to request, review, and accept proposals; to execute contracts; and to procure energy storage credits. Requires the Agency to develop a storage procurement plan. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Makes other changes. Amends the Public Utilities Act. Requires each electric utility to demonstrate sufficient resources devoted to interconnection. Requires the Illinois Commerce Commission to perform specified actions regarding interconnection within 90 days after the effective date of the amendatory Act. In a provision regarding virtual power plant programs, requires each electric utility serving more than 300,000 customers as of January 1, 2023 to propose an initial tariff within 60 days after the effective date of the amendatory Act. In a provision regarding peak remediation programs, requires each electric utility serving more than 300,000 retail customers as of January 1, 2023 to propose an initial tariff within 90 days after the effective date of the amendatory Act. Requires the Commission to establish a working group with relevant stakeholders to develop a stand-alone energy storage distribution deployment program. Provides that, beginning on June 1, 2024, the electric utility shall be entitled to recover through tariffed charges all of the costs associated with the purchase of energy storage credits to meet specified energy storage standards. Requires the Agency to prepare an energy storage resources procurement plan for the procurement of energy storage credits. Requires the Commission to establish an Office of Interconnection and Renewable Development, which shall (i) actively seek input from all interested parties and shall develop a thorough understanding and critical analyses of the tools and techniques used to promote development and remove barriers to development of the projects and devices, and (ii) monitor interconnection between electric utilities and applicants for interconnection and interconnection customers. Sets forth reporting requirements for the Office. Makes other changes. Effective immediately.
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8	8	A BILL FOR
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11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Power Agency Act is amended by
15	15	5 changing Sections 1-5, 1-10, 1-20, and 1-75 and by adding
16	16	6 Sections 1-93 and 1-94 as follows:
17	17	7 (20 ILCS 3855/1-5)
18	18	8 Sec. 1-5. Legislative declarations and findings. The
19	19	9 General Assembly finds and declares:
20	20	10 (1) The health, welfare, and prosperity of all
21	21	11 Illinois residents require the provision of adequate,
22	22	12 reliable, affordable, efficient, and environmentally
23	23	13 sustainable electric service at the lowest total cost over
24	24	14 time, taking into account any benefits of price stability.
25	25	15 (1.5) To provide the highest quality of life for the
26	26	16 residents of Illinois and to provide for a clean and
27	27	17 healthy environment, it is the policy of this State to
28	28	18 rapidly transition to 100% clean energy by 2050.
29	29	19 (2) (Blank).
30	30	20 (3) (Blank).
31	31	21 (4) It is necessary to improve the process of
32	32	22 procuring electricity to serve Illinois residents, to
33	33	23 promote investment in energy efficiency and
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2497 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
38	38	See Index See Index
39	39	See Index
40	40	Amends the Illinois Power Agency Act. Adds and modifies definitions of terms. Authorizes the Illinois Power Agency to conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve certain energy storage standards; to request, review, and accept proposals; to execute contracts; and to procure energy storage credits. Requires the Agency to develop a storage procurement plan. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Makes other changes. Amends the Public Utilities Act. Requires each electric utility to demonstrate sufficient resources devoted to interconnection. Requires the Illinois Commerce Commission to perform specified actions regarding interconnection within 90 days after the effective date of the amendatory Act. In a provision regarding virtual power plant programs, requires each electric utility serving more than 300,000 customers as of January 1, 2023 to propose an initial tariff within 60 days after the effective date of the amendatory Act. In a provision regarding peak remediation programs, requires each electric utility serving more than 300,000 retail customers as of January 1, 2023 to propose an initial tariff within 90 days after the effective date of the amendatory Act. Requires the Commission to establish a working group with relevant stakeholders to develop a stand-alone energy storage distribution deployment program. Provides that, beginning on June 1, 2024, the electric utility shall be entitled to recover through tariffed charges all of the costs associated with the purchase of energy storage credits to meet specified energy storage standards. Requires the Agency to prepare an energy storage resources procurement plan for the procurement of energy storage credits. Requires the Commission to establish an Office of Interconnection and Renewable Development, which shall (i) actively seek input from all interested parties and shall develop a thorough understanding and critical analyses of the tools and techniques used to promote development and remove barriers to development of the projects and devices, and (ii) monitor interconnection between electric utilities and applicants for interconnection and interconnection customers. Sets forth reporting requirements for the Office. Makes other changes. Effective immediately.
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43	43	A BILL FOR
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68	68	1 demand-response measures, and to maintain and support
69	69	2 development of clean coal technologies, generation
70	70	3 resources that operate at all hours of the day and under
71	71	4 all weather conditions, zero emission facilities, and
72	72	5 renewable resources.
73	73	6 (5) Procuring a diverse electricity supply portfolio
74	74	7 will ensure the lowest total cost over time for adequate,
75	75	8 reliable, efficient, and environmentally sustainable
76	76	9 electric service.
77	77	10 (6) Including renewable resources and zero emission
78	78	11 credits from zero emission facilities in that portfolio
79	79	12 will reduce long-term direct and indirect costs to
80	80	13 consumers by decreasing environmental impacts and by
81	81	14 avoiding or delaying the need for new generation,
82	82	15 transmission, and distribution infrastructure. Developing
83	83	16 new renewable energy resources in Illinois, including
84	84	17 brownfield solar projects and community solar projects,
85	85	18 will help to diversify Illinois electricity supply, avoid
86	86	19 and reduce pollution, reduce peak demand, and enhance
87	87	20 public health and well-being of Illinois residents.
88	88	21 (7) Developing community solar projects in Illinois
89	89	22 will help to expand access to renewable energy resources
90	90	23 to more Illinois residents.
91	91	24 (8) Developing brownfield solar projects in Illinois
92	92	25 will help return blighted or contaminated land to
93	93	26 productive use while enhancing public health and the
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104	104	1 well-being of Illinois residents, including those in
105	105	2 environmental justice communities.
106	106	3 (9) Energy efficiency, demand-response measures, zero
107	107	4 emission energy, and renewable energy are resources
108	108	5 currently underused in Illinois. These resources should be
109	109	6 used, when cost effective, to reduce costs to consumers,
110	110	7 improve reliability, and improve environmental quality and
111	111	8 public health.
112	112	9 (10) The State should encourage the use of advanced
113	113	10 clean coal technologies that capture and sequester carbon
114	114	11 dioxide emissions to advance environmental protection
115	115	12 goals and to demonstrate the viability of coal and
116	116	13 coal-derived fuels in a carbon-constrained economy.
117	117	14 (10.5) The State should encourage the development of
118	118	15 interregional high voltage direct current (HVDC)
119	119	16 transmission lines that benefit Illinois. All ratepayers
120	120	17 in the State served by the regional transmission
121	121	18 organization where the HVDC converter station is
122	122	19 interconnected benefit from the long-term price stability
123	123	20 and market access provided by interregional HVDC
124	124	21 transmission facilities. The benefits to Illinois include:
125	125	22 reduction in wholesale power prices; access to lower-cost
126	126	23 markets; enabling the integration of additional renewable
127	127	24 generating units within the State through near
128	128	25 instantaneous dispatchability and the provision of
129	129	26 ancillary services; creating good-paying union jobs in
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140	140	1 Illinois; and, enhancing grid reliability and climate
141	141	2 resilience via HVDC facilities that are installed
142	142	3 underground.
143	143	4 (10.6) The health, welfare, and safety of the people
144	144	5 of the State are advanced by developing new HVDC
145	145	6 transmission lines predominantly along transportation
146	146	7 rights-of-way, with an HVDC converter station that is
147	147	8 located in the service territory of a public utility as
148	148	9 defined in Section 3-105 of the Public Utilities Act
149	149	10 serving more than 3,000,000 retail customers, and with a
150	150	11 project labor agreement as defined in Section 1-10 of this
151	151	12 Act.
152	152	13 (11) The General Assembly enacted Public Act 96-0795
153	153	14 to reform the State's purchasing processes, recognizing
154	154	15 that government procurement is susceptible to abuse if
155	155	16 structural and procedural safeguards are not in place to
156	156	17 ensure independence, insulation, oversight, and
157	157	18 transparency.
158	158	19 (12) The principles that underlie the procurement
159	159	20 reform legislation apply also in the context of power
160	160	21 purchasing.
161	161	22 (13) To ensure that the benefits of installing
162	162	23 renewable resources are available to all Illinois
163	163	24 residents and located across the State, subject to
164	164	25 appropriation, it is necessary for the Agency to provide
165	165	26 public information and educational resources on how
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176	176	1 residents can benefit from the expansion of renewable
177	177	2 energy in Illinois and participate in the Illinois Solar
178	178	3 for All Program established in Section 1-56, the
179	179	4 Adjustable Block program established in Section 1-75, the
180	180	5 job training programs established by paragraph (1) of
181	181	6 subsection (a) of Section 16-108.12 of the Public
182	182	7 Utilities Act, and the programs and resources established
183	183	8 by the Energy Transition Act.
184	184	9 (14) The deployment of energy storage systems is
185	185	10 necessary to achieve high levels of renewable energy, to
186	186	11 avoid the use of peaking fossil fuel plants, and to
187	187	12 maintain an efficient, reliable, and resilient electric
188	188	13 grid.
189	189	14 The General Assembly therefore finds that it is necessary
190	190	15 to create the Illinois Power Agency and that the goals and
191	191	16 objectives of that Agency are to accomplish each of the
192	192	17 following:
193	193	18 (A) Develop electricity procurement plans to ensure
194	194	19 adequate, reliable, affordable, efficient, and
195	195	20 environmentally sustainable electric service at the lowest
196	196	21 total cost over time, taking into account any benefits of
197	197	22 price stability, for electric utilities that on December
198	198	23 31, 2005 provided electric service to at least 100,000
199	199	24 customers in Illinois and for small multi-jurisdictional
200	200	25 electric utilities that (i) on December 31, 2005 served
201	201	26 less than 100,000 customers in Illinois and (ii) request a
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212	212	1 procurement plan for their Illinois jurisdictional load.
213	213	2 The procurement plan shall be updated on an annual basis
214	214	3 and shall include renewable energy resources and,
215	215	4 beginning with the delivery year commencing June 1, 2017,
216	216	5 zero emission credits from zero emission facilities
217	217	6 sufficient to achieve the standards specified in this Act.
218	218	7 (B) Conduct the competitive procurement processes
219	219	8 identified in this Act.
220	220	9 (C) Develop electric generation and co-generation
221	221	10 facilities that use indigenous coal or renewable
222	222	11 resources, or both, financed with bonds issued by the
223	223	12 Illinois Finance Authority.
224	224	13 (D) Supply electricity from the Agency's facilities at
225	225	14 cost to one or more of the following: municipal electric
226	226	15 systems, governmental aggregators, or rural electric
227	227	16 cooperatives in Illinois.
228	228	17 (E) Ensure that the process of power procurement is
229	229	18 conducted in an ethical and transparent fashion, immune
230	230	19 from improper influence.
231	231	20 (F) Continue to review its policies and practices to
232	232	21 determine how best to meet its mission of providing the
233	233	22 lowest cost power to the greatest number of people, at any
234	234	23 given point in time, in accordance with applicable law.
235	235	24 (G) Operate in a structurally insulated, independent,
236	236	25 and transparent fashion so that nothing impedes the
237	237	26 Agency's mission to secure power at the best prices the
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248	248	1 market will bear, provided that the Agency meets all
249	249	2 applicable legal requirements.
250	250	3 (H) Implement renewable energy procurement and
251	251	4 training programs throughout the State to diversify
252	252	5 Illinois electricity supply, improve reliability, avoid
253	253	6 and reduce pollution, reduce peak demand, and enhance
254	254	7 public health and well-being of Illinois residents,
255	255	8 including low-income residents.
256	256	9 (I) Implement procurements to cost-effectively deploy
257	257	10 contracted energy storage systems.
258	258	11 (Source: P.A. 102-662, eff. 9-15-21.)
259	259	12 (20 ILCS 3855/1-10)
260	260	13 Sec. 1-10. Definitions.
261	261	14 "Agency" means the Illinois Power Agency.
262	262	15 "Agency loan agreement" means any agreement pursuant to
263	263	16 which the Illinois Finance Authority agrees to loan the
264	264	17 proceeds of revenue bonds issued with respect to a project to
265	265	18 the Agency upon terms providing for loan repayment
266	266	19 installments at least sufficient to pay when due all principal
267	267	20 of, interest and premium, if any, on those revenue bonds, and
268	268	21 providing for maintenance, insurance, and other matters in
269	269	22 respect of the project.
270	270	23 "Authority" means the Illinois Finance Authority.
271	271	24 "Brownfield site photovoltaic project" means photovoltaics
272	272	25 that are either:
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283	283	1 (1) interconnected to an electric utility as defined
284	284	2 in this Section, a municipal utility as defined in this
285	285	3 Section, a public utility as defined in Section 3-105 of
286	286	4 the Public Utilities Act, or an electric cooperative as
287	287	5 defined in Section 3-119 of the Public Utilities Act and
288	288	6 located at a site that is regulated by any of the following
289	289	7 entities under the following programs:
290	290	8 (A) the United States Environmental Protection
291	291	9 Agency under the federal Comprehensive Environmental
292	292	10 Response, Compensation, and Liability Act of 1980, as
293	293	11 amended;
294	294	12 (B) the United States Environmental Protection
295	295	13 Agency under the Corrective Action Program of the
296	296	14 federal Resource Conservation and Recovery Act, as
297	297	15 amended;
298	298	16 (C) the Illinois Environmental Protection Agency
299	299	17 under the Illinois Site Remediation Program; or
300	300	18 (D) the Illinois Environmental Protection Agency
301	301	19 under the Illinois Solid Waste Program; or
302	302	20 (2) located at the site of a coal mine that has
303	303	21 permanently ceased coal production, permanently halted any
304	304	22 re-mining operations, and is no longer accepting any coal
305	305	23 combustion residues; has both completed all clean-up and
306	306	24 remediation obligations under the federal Surface Mining
307	307	25 and Reclamation Act of 1977 and all applicable Illinois
308	308	26 rules and any other clean-up, remediation, or ongoing
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319	319	1 monitoring to safeguard the health and well-being of the
320	320	2 people of the State of Illinois, as well as demonstrated
321	321	3 compliance with all applicable federal and State
322	322	4 environmental rules and regulations, including, but not
323	323	5 limited, to 35 Ill. Adm. Code Part 845 and any rules for
324	324	6 historic fill of coal combustion residuals, including any
325	325	7 rules finalized in Subdocket A of Illinois Pollution
326	326	8 Control Board docket R2020-019.
327	327	9 "Clean coal facility" means an electric generating
328	328	10 facility that uses primarily coal as a feedstock and that
329	329	11 captures and sequesters carbon dioxide emissions at the
330	330	12 following levels: at least 50% of the total carbon dioxide
331	331	13 emissions that the facility would otherwise emit if, at the
332	332	14 time construction commences, the facility is scheduled to
333	333	15 commence operation before 2016, at least 70% of the total
334	334	16 carbon dioxide emissions that the facility would otherwise
335	335	17 emit if, at the time construction commences, the facility is
336	336	18 scheduled to commence operation during 2016 or 2017, and at
337	337	19 least 90% of the total carbon dioxide emissions that the
338	338	20 facility would otherwise emit if, at the time construction
339	339	21 commences, the facility is scheduled to commence operation
340	340	22 after 2017. The power block of the clean coal facility shall
341	341	23 not exceed allowable emission rates for sulfur dioxide,
342	342	24 nitrogen oxides, carbon monoxide, particulates and mercury for
343	343	25 a natural gas-fired combined-cycle facility the same size as
344	344	26 and in the same location as the clean coal facility at the time
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355	355	1 the clean coal facility obtains an approved air permit. All
356	356	2 coal used by a clean coal facility shall have high volatile
357	357	3 bituminous rank and greater than 1.7 pounds of sulfur per
358	358	4 million Btu content, unless the clean coal facility does not
359	359	5 use gasification technology and was operating as a
360	360	6 conventional coal-fired electric generating facility on June
361	361	7 1, 2009 (the effective date of Public Act 95-1027).
362	362	8 "Clean coal SNG brownfield facility" means a facility that
363	363	9 (1) has commenced construction by July 1, 2015 on an urban
364	364	10 brownfield site in a municipality with at least 1,000,000
365	365	11 residents; (2) uses a gasification process to produce
366	366	12 substitute natural gas; (3) uses coal as at least 50% of the
367	367	13 total feedstock over the term of any sourcing agreement with a
368	368	14 utility and the remainder of the feedstock may be either
369	369	15 petroleum coke or coal, with all such coal having a high
370	370	16 bituminous rank and greater than 1.7 pounds of sulfur per
371	371	17 million Btu content unless the facility reasonably determines
372	372	18 that it is necessary to use additional petroleum coke to
373	373	19 deliver additional consumer savings, in which case the
374	374	20 facility shall use coal for at least 35% of the total feedstock
375	375	21 over the term of any sourcing agreement; and (4) captures and
376	376	22 sequesters at least 85% of the total carbon dioxide emissions
377	377	23 that the facility would otherwise emit.
378	378	24 "Clean coal SNG facility" means a facility that uses a
379	379	25 gasification process to produce substitute natural gas, that
380	380	26 sequesters at least 90% of the total carbon dioxide emissions
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391	391	1 that the facility would otherwise emit, that uses at least 90%
392	392	2 coal as a feedstock, with all such coal having a high
393	393	3 bituminous rank and greater than 1.7 pounds of sulfur per
394	394	4 million Btu content, and that has a valid and effective permit
395	395	5 to construct emission sources and air pollution control
396	396	6 equipment and approval with respect to the federal regulations
397	397	7 for Prevention of Significant Deterioration of Air Quality
398	398	8 (PSD) for the plant pursuant to the federal Clean Air Act;
399	399	9 provided, however, a clean coal SNG brownfield facility shall
400	400	10 not be a clean coal SNG facility.
401	401	11 "Clean energy" means energy generation that is 90% or
402	402	12 greater free of carbon dioxide emissions.
403	403	13 "Commission" means the Illinois Commerce Commission.
404	404	14 "Community renewable generation project" means an electric
405	405	15 generating facility that:
406	406	16 (1) is powered by wind, solar thermal energy,
407	407	17 photovoltaic cells or panels, biodiesel, crops and
408	408	18 untreated and unadulterated organic waste biomass, and
409	409	19 hydropower that does not involve new construction of dams;
410	410	20 (2) is interconnected at the distribution system level
411	411	21 of an electric utility as defined in this Section, a
412	412	22 municipal utility as defined in this Section that owns or
413	413	23 operates electric distribution facilities, a public
414	414	24 utility as defined in Section 3-105 of the Public
415	415	25 Utilities Act, or an electric cooperative, as defined in
416	416	26 Section 3-119 of the Public Utilities Act;
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427	427	1 (3) credits the value of electricity generated by the
428	428	2 facility to the subscribers of the facility; and
429	429	3 (4) is limited in nameplate capacity to less than or
430	430	4 equal to 5,000 kilowatts.
431	431	5 "Costs incurred in connection with the development and
432	432	6 construction of a facility" means:
433	433	7 (1) the cost of acquisition of all real property,
434	434	8 fixtures, and improvements in connection therewith and
435	435	9 equipment, personal property, and other property, rights,
436	436	10 and easements acquired that are deemed necessary for the
437	437	11 operation and maintenance of the facility;
438	438	12 (2) financing costs with respect to bonds, notes, and
439	439	13 other evidences of indebtedness of the Agency;
440	440	14 (3) all origination, commitment, utilization,
441	441	15 facility, placement, underwriting, syndication, credit
442	442	16 enhancement, and rating agency fees;
443	443	17 (4) engineering, design, procurement, consulting,
444	444	18 legal, accounting, title insurance, survey, appraisal,
445	445	19 escrow, trustee, collateral agency, interest rate hedging,
446	446	20 interest rate swap, capitalized interest, contingency, as
447	447	21 required by lenders, and other financing costs, and other
448	448	22 expenses for professional services; and
449	449	23 (5) the costs of plans, specifications, site study and
450	450	24 investigation, installation, surveys, other Agency costs
451	451	25 and estimates of costs, and other expenses necessary or
452	452	26 incidental to determining the feasibility of any project,
453	453
454	454
455	455
456	456
457	457
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459	459
460	460
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463	463	1 together with such other expenses as may be necessary or
464	464	2 incidental to the financing, insuring, acquisition, and
465	465	3 construction of a specific project and starting up,
466	466	4 commissioning, and placing that project in operation.
467	467	5 "Delivery services" has the same definition as found in
468	468	6 Section 16-102 of the Public Utilities Act.
469	469	7 "Delivery year" means the consecutive 12-month period
470	470	8 beginning June 1 of a given year and ending May 31 of the
471	471	9 following year.
472	472	10 "Department" means the Department of Commerce and Economic
473	473	11 Opportunity.
474	474	12 "Director" means the Director of the Illinois Power
475	475	13 Agency.
476	476	14 "Demand-response" means measures that decrease peak
477	477	15 electricity demand or shift demand from peak to off-peak
478	478	16 periods.
479	479	17 "Distributed renewable energy generation device" means a
480	480	18 device that is:
481	481	19 (1) powered by wind, solar thermal energy,
482	482	20 photovoltaic cells or panels, biodiesel, crops and
483	483	21 untreated and unadulterated organic waste biomass, tree
484	484	22 waste, and hydropower that does not involve new
485	485	23 construction of dams, waste heat to power systems, or
486	486	24 qualified combined heat and power systems;
487	487	25 (2) interconnected at the distribution system level of
488	488	26 either an electric utility as defined in this Section, a
489	489
490	490
491	491
492	492
493	493
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495	495
496	496
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499	499	1 municipal utility as defined in this Section that owns or
500	500	2 operates electric distribution facilities, or a rural
501	501	3 electric cooperative as defined in Section 3-119 of the
502	502	4 Public Utilities Act;
503	503	5 (3) located on the customer side of the customer's
504	504	6 electric meter and is primarily used to offset that
505	505	7 customer's electricity load; and
506	506	8 (4) (blank).
507	507	9 "Energy efficiency" means measures that reduce the amount
508	508	10 of electricity or natural gas consumed in order to achieve a
509	509	11 given end use. "Energy efficiency" includes voltage
510	510	12 optimization measures that optimize the voltage at points on
511	511	13 the electric distribution voltage system and thereby reduce
512	512	14 electricity consumption by electric customers' end use
513	513	15 devices. "Energy efficiency" also includes measures that
514	514	16 reduce the total Btus of electricity, natural gas, and other
515	515	17 fuels needed to meet the end use or uses.
516	516	18 "Energy storage capacity" means the nameplate capacity of
517	517	19 a contracted energy storage system, measured in megawatts AC.
518	518	20 "Energy storage duration" means the number of hours over
519	519	21 which an energy storage system is capable of continuously
520	520	22 discharging energy at its full energy storage capacity.
521	521	23 "Energy storage system" means commercially available
522	522	24 technology that is capable of absorbing energy and storing it
523	523	25 for use at a later time, including, but not limited to,
524	524	26 electrochemical and electromechanical technologies. "Energy
525	525
526	526
527	527
528	528
529	529
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531	531
532	532
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534	534	SB2497 - 15 - LRB104 12224 JDS 22330 b
535	535	1 storage system" does not include technologies that require
536	536	2 combustion.
537	537	3 "Electric utility" has the same definition as found in
538	538	4 Section 16-102 of the Public Utilities Act.
539	539	5 "Equity investment eligible community" or "eligible
540	540	6 community" are synonymous and mean the geographic areas
541	541	7 throughout Illinois which would most benefit from equitable
542	542	8 investments by the State designed to combat discrimination.
543	543	9 Specifically, the eligible communities shall be defined as the
544	544	10 following areas:
545	545	11 (1) R3 Areas as established pursuant to Section 10-40
546	546	12 of the Cannabis Regulation and Tax Act, where residents
547	547	13 have historically been excluded from economic
548	548	14 opportunities, including opportunities in the energy
549	549	15 sector; and
550	550	16 (2) environmental justice communities, as defined by
551	551	17 the Illinois Power Agency pursuant to the Illinois Power
552	552	18 Agency Act, where residents have historically been subject
553	553	19 to disproportionate burdens of pollution, including
554	554	20 pollution from the energy sector.
555	555	21 "Equity eligible persons" or "eligible persons" means
556	556	22 persons who would most benefit from equitable investments by
557	557	23 the State designed to combat discrimination, specifically:
558	558	24 (1) persons who graduate from or are current or former
559	559	25 participants in the Clean Jobs Workforce Network Program,
560	560	26 the Clean Energy Contractor Incubator Program, the
561	561
562	562
563	563
564	564
565	565
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567	567
568	568
569	569	SB2497- 16 -LRB104 12224 JDS 22330 b SB2497 - 16 - LRB104 12224 JDS 22330 b
570	570	SB2497 - 16 - LRB104 12224 JDS 22330 b
571	571	1 Illinois Climate Works Preapprenticeship Program,
572	572	2 Returning Residents Clean Jobs Training Program, or the
573	573	3 Clean Energy Primes Contractor Accelerator Program, and
574	574	4 the solar training pipeline and multi-cultural jobs
575	575	5 program created in paragraphs (a)(1) and (a)(3) of Section
576	576	6 16-208.12 of the Public Utilities Act;
577	577	7 (2) persons who are graduates of or currently enrolled
578	578	8 in the foster care system;
579	579	9 (3) persons who were formerly incarcerated;
580	580	10 (4) persons whose primary residence is in an equity
581	581	11 investment eligible community.
582	582	12 "Equity eligible contractor" means a business that is
583	583	13 majority-owned by eligible persons, or a nonprofit or
584	584	14 cooperative that is majority-governed by eligible persons, or
585	585	15 is a natural person that is an eligible person offering
586	586	16 personal services as an independent contractor.
587	587	17 "Facility" means an electric generating unit or a
588	588	18 co-generating unit that produces electricity along with
589	589	19 related equipment necessary to connect the facility to an
590	590	20 electric transmission or distribution system.
591	591	21 "General contractor" means the entity or organization with
592	592	22 main responsibility for the building of a construction project
593	593	23 and who is the party signing the prime construction contract
594	594	24 for the project.
595	595	25 "Governmental aggregator" means one or more units of local
596	596	26 government that individually or collectively procure
597	597
598	598
599	599
600	600
601	601
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603	603
604	604
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606	606	SB2497 - 17 - LRB104 12224 JDS 22330 b
607	607	1 electricity to serve residential retail electrical loads
608	608	2 located within its or their jurisdiction.
609	609	3 "High voltage direct current converter station" means the
610	610	4 collection of equipment that converts direct current energy
611	611	5 from a high voltage direct current transmission line into
612	612	6 alternating current using Voltage Source Conversion technology
613	613	7 and that is interconnected with transmission or distribution
614	614	8 assets located in Illinois.
615	615	9 "High voltage direct current renewable energy credit"
616	616	10 means a renewable energy credit associated with a renewable
617	617	11 energy resource where the renewable energy resource has
618	618	12 entered into a contract to transmit the energy associated with
619	619	13 such renewable energy credit over high voltage direct current
620	620	14 transmission facilities.
621	621	15 "High voltage direct current transmission facilities"
622	622	16 means the collection of installed equipment that converts
623	623	17 alternating current energy in one location to direct current
624	624	18 and transmits that direct current energy to a high voltage
625	625	19 direct current converter station using Voltage Source
626	626	20 Conversion technology. "High voltage direct current
627	627	21 transmission facilities" includes the high voltage direct
628	628	22 current converter station itself and associated high voltage
629	629	23 direct current transmission lines. Notwithstanding the
630	630	24 preceding, after September 15, 2021 (the effective date of
631	631	25 Public Act 102-662), an otherwise qualifying collection of
632	632	26 equipment does not qualify as high voltage direct current
633	633
634	634
635	635
636	636
637	637
638	638	SB2497 - 17 - LRB104 12224 JDS 22330 b
639	639
640	640
641	641	SB2497- 18 -LRB104 12224 JDS 22330 b SB2497 - 18 - LRB104 12224 JDS 22330 b
642	642	SB2497 - 18 - LRB104 12224 JDS 22330 b
643	643	1 transmission facilities unless its developer entered into a
644	644	2 project labor agreement, is capable of transmitting
645	645	3 electricity at 525kv with an Illinois converter station
646	646	4 located and interconnected in the region of the PJM
647	647	5 Interconnection, LLC, and the system does not operate as a
648	648	6 public utility, as that term is defined in Section 3-105 of the
649	649	7 Public Utilities Act.
650	650	8 "Hydropower" means any method of electricity generation or
651	651	9 storage that results from the flow of water, including
652	652	10 impoundment facilities, diversion facilities, and pumped
653	653	11 storage facilities.
654	654	12 "Index price" means the real-time energy settlement price
655	655	13 at the applicable Illinois trading hub, such as PJM-NIHUB or
656	656	14 MISO-IL, for a given settlement period. "Index price" may, if
657	657	15 a utility-scale wind facility or a utility-scale solar
658	658	16 facility interconnected with an electric utility elects to use
659	659	17 an alternative definition, also include the monthly settlement
660	660	18 of the applicable seasonal qualifying facilities rate offered
661	661	19 by the interconnecting electric utility.
662	662	20 "Indexed credit" means a credit subject to a contract
663	663	21 described in Section 1-93.
664	664	22 "Indexed renewable energy credit" means a tradable credit
665	665	23 that represents the environmental attributes of one megawatt
666	666	24 hour of energy produced from a renewable energy resource, the
667	667	25 price of which shall be calculated by subtracting the strike
668	668	26 price offered by a new utility-scale wind project or a new
669	669
670	670
671	671
672	672
673	673
674	674	SB2497 - 18 - LRB104 12224 JDS 22330 b
675	675
676	676
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678	678	SB2497 - 19 - LRB104 12224 JDS 22330 b
679	679	1 utility-scale photovoltaic project from the index price in a
680	680	2 given settlement period.
681	681	3 "Indexed renewable energy credit counterparty" has the
682	682	4 same meaning as "public utility" as defined in Section 3-105
683	683	5 of the Public Utilities Act.
684	684	6 "Local government" means a unit of local government as
685	685	7 defined in Section 1 of Article VII of the Illinois
686	686	8 Constitution.
687	687	9 "Long-duration energy storage" means an energy storage
688	688	10 system capable of dispatching energy at its full rated
689	689	11 capacity for 10 or more hours.
690	690	12 "Long-term energy storage contract" means a contract for
691	691	13 the purchase of energy storage credits generated by an energy
692	692	14 storage system for a period of at least 15 years.
693	693	15 "Modernized" or "retooled" means the construction, repair,
694	694	16 maintenance, or significant expansion of turbines and existing
695	695	17 hydropower dams.
696	696	18 "Multi-day energy storage" means an energy storage system
697	697	19 capable of dispatching energy at its full rated capacity for
698	698	20 greater than 24 hours.
699	699	21 "Municipality" means a city, village, or incorporated
700	700	22 town.
701	701	23 "Municipal utility" means a public utility owned and
702	702	24 operated by any subdivision or municipal corporation of this
703	703	25 State.
704	704	26 "Nameplate capacity" means the aggregate inverter
705	705
706	706
707	707
708	708
709	709
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711	711
712	712
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714	714	SB2497 - 20 - LRB104 12224 JDS 22330 b
715	715	1 nameplate capacity in kilowatts AC. "Nameplate capacity" does
716	716	2 not include the capacity of an energy storage system
717	717	3 associated with a renewable energy resource.
718	718	4 "Person" means any natural person, firm, partnership,
719	719	5 corporation, either domestic or foreign, company, association,
720	720	6 limited liability company, joint stock company, or association
721	721	7 and includes any trustee, receiver, assignee, or personal
722	722	8 representative thereof.
723	723	9 "Project" means the planning, bidding, and construction of
724	724	10 a facility.
725	725	11 "Project labor agreement" means a pre-hire collective
726	726	12 bargaining agreement that covers all terms and conditions of
727	727	13 employment on a specific construction project and must include
728	728	14 the following:
729	729	15 (1) provisions establishing the minimum hourly wage
730	730	16 for each class of labor organization employee;
731	731	17 (2) provisions establishing the benefits and other
732	732	18 compensation for each class of labor organization
733	733	19 employee;
734	734	20 (3) provisions establishing that no strike or disputes
735	735	21 will be engaged in by the labor organization employees;
736	736	22 (4) provisions establishing that no lockout or
737	737	23 disputes will be engaged in by the general contractor
738	738	24 building the project; and
739	739	25 (5) provisions for minorities and women, as defined
740	740	26 under the Business Enterprise for Minorities, Women, and
741	741
742	742
743	743
744	744
745	745
746	746	SB2497 - 20 - LRB104 12224 JDS 22330 b
747	747
748	748
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751	751	1 Persons with Disabilities Act, setting forth goals for
752	752	2 apprenticeship hours to be performed by minorities and
753	753	3 women and setting forth goals for total hours to be
754	754	4 performed by underrepresented minorities and women.
755	755	5 A labor organization and the general contractor building
756	756	6 the project shall have the authority to include other terms
757	757	7 and conditions as they deem necessary.
758	758	8 "Public utility" has the same definition as found in
759	759	9 Section 3-105 of the Public Utilities Act.
760	760	10 "Qualified combined heat and power systems" means systems
761	761	11 that, either simultaneously or sequentially, produce
762	762	12 electricity and useful thermal energy from a single fuel
763	763	13 source. Such systems are eligible for "renewable energy
764	764	14 credits" in an amount equal to its total energy output where a
765	765	15 renewable fuel is consumed or in an amount equal to the net
766	766	16 reduction in nonrenewable fuel consumed on a total energy
767	767	17 output basis.
768	768	18 "Real property" means any interest in land together with
769	769	19 all structures, fixtures, and improvements thereon, including
770	770	20 lands under water and riparian rights, any easements,
771	771	21 covenants, licenses, leases, rights-of-way, uses, and other
772	772	22 interests, together with any liens, judgments, mortgages, or
773	773	23 other claims or security interests related to real property.
774	774	24 "Renewable energy credit" means a tradable credit that
775	775	25 represents the environmental attributes of one megawatt hour
776	776	26 of energy produced from a renewable energy resource.
777	777
778	778
779	779
780	780
781	781
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783	783
784	784
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786	786	SB2497 - 22 - LRB104 12224 JDS 22330 b
787	787	1 "Renewable energy resources" includes energy and its
788	788	2 associated renewable energy credit or renewable energy credits
789	789	3 from wind, solar thermal energy, photovoltaic cells and
790	790	4 panels, biodiesel, anaerobic digestion, crops and untreated
791	791	5 and unadulterated organic waste biomass, and hydropower that
792	792	6 does not involve new construction of dams, waste heat to power
793	793	7 systems, or qualified combined heat and power systems. For
794	794	8 purposes of this Act, landfill gas produced in the State is
795	795	9 considered a renewable energy resource. "Renewable energy
796	796	10 resources" does not include the incineration or burning of
797	797	11 tires, garbage, general household, institutional, and
798	798	12 commercial waste, industrial lunchroom or office waste,
799	799	13 landscape waste, railroad crossties, utility poles, or
800	800	14 construction or demolition debris, other than untreated and
801	801	15 unadulterated waste wood. "Renewable energy resources" also
802	802	16 includes high voltage direct current renewable energy credits
803	803	17 and the associated energy converted to alternating current by
804	804	18 a high voltage direct current converter station to the extent
805	805	19 that: (1) the generator of such renewable energy resource
806	806	20 contracted with a third party to transmit the energy over the
807	807	21 high voltage direct current transmission facilities, and (2)
808	808	22 the third-party contracting for delivery of renewable energy
809	809	23 resources over the high voltage direct current transmission
810	810	24 facilities have ownership rights over the unretired associated
811	811	25 high voltage direct current renewable energy credit.
812	812	26 "Retail customer" has the same definition as found in
813	813
814	814
815	815
816	816
817	817
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819	819
820	820
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822	822	SB2497 - 23 - LRB104 12224 JDS 22330 b
823	823	1 Section 16-102 of the Public Utilities Act.
824	824	2 "Revenue bond" means any bond, note, or other evidence of
825	825	3 indebtedness issued by the Authority, the principal and
826	826	4 interest of which is payable solely from revenues or income
827	827	5 derived from any project or activity of the Agency.
828	828	6 "Sequester" means permanent storage of carbon dioxide by
829	829	7 injecting it into a saline aquifer, a depleted gas reservoir,
830	830	8 or an oil reservoir, directly or through an enhanced oil
831	831	9 recovery process that may involve intermediate storage,
832	832	10 regardless of whether these activities are conducted by a
833	833	11 clean coal facility, a clean coal SNG facility, a clean coal
834	834	12 SNG brownfield facility, or a party with which a clean coal
835	835	13 facility, clean coal SNG facility, or clean coal SNG
836	836	14 brownfield facility has contracted for such purposes.
837	837	15 "Service area" has the same definition as found in Section
838	838	16 16-102 of the Public Utilities Act.
839	839	17 "Settlement period" means the period of time utilized by
840	840	18 MISO and PJM and their successor organizations as the basis
841	841	19 for settlement calculations in the real-time energy market.
842	842	20 "Sourcing agreement" means (i) in the case of an electric
843	843	21 utility, an agreement between the owner of a clean coal
844	844	22 facility and such electric utility, which agreement shall have
845	845	23 terms and conditions meeting the requirements of paragraph (3)
846	846	24 of subsection (d) of Section 1-75, (ii) in the case of an
847	847	25 alternative retail electric supplier, an agreement between the
848	848	26 owner of a clean coal facility and such alternative retail
849	849
850	850
851	851
852	852
853	853
854	854	SB2497 - 23 - LRB104 12224 JDS 22330 b
855	855
856	856
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858	858	SB2497 - 24 - LRB104 12224 JDS 22330 b
859	859	1 electric supplier, which agreement shall have terms and
860	860	2 conditions meeting the requirements of Section 16-115(d)(5) of
861	861	3 the Public Utilities Act, and (iii) in case of a gas utility,
862	862	4 an agreement between the owner of a clean coal SNG brownfield
863	863	5 facility and the gas utility, which agreement shall have the
864	864	6 terms and conditions meeting the requirements of subsection
865	865	7 (h-1) of Section 9-220 of the Public Utilities Act.
866	866	8 "Strike price" means a contract price for energy and
867	867	9 renewable energy credits from a new utility-scale wind project
868	868	10 or a new utility-scale photovoltaic project.
869	869	11 "Subscriber" means a person who (i) takes delivery service
870	870	12 from an electric utility, and (ii) has a subscription of no
871	871	13 less than 200 watts to a community renewable generation
872	872	14 project that is located in the electric utility's service
873	873	15 area. No subscriber's subscriptions may total more than 40% of
874	874	16 the nameplate capacity of an individual community renewable
875	875	17 generation project. Entities that are affiliated by virtue of
876	876	18 a common parent shall not represent multiple subscriptions
877	877	19 that total more than 40% of the nameplate capacity of an
878	878	20 individual community renewable generation project.
879	879	21 "Subscription" means an interest in a community renewable
880	880	22 generation project expressed in kilowatts, which is sized
881	881	23 primarily to offset part or all of the subscriber's
882	882	24 electricity usage.
883	883	25 "Substitute natural gas" or "SNG" means a gas manufactured
884	884	26 by gasification of hydrocarbon feedstock, which is
885	885
886	886
887	887
888	888
889	889
890	890	SB2497 - 24 - LRB104 12224 JDS 22330 b
891	891
892	892
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894	894	SB2497 - 25 - LRB104 12224 JDS 22330 b
895	895	1 substantially interchangeable in use and distribution with
896	896	2 conventional natural gas.
897	897	3 "Total resource cost test" or "TRC test" means a standard
898	898	4 that is met if, for an investment in energy efficiency or
899	899	5 demand-response measures, the benefit-cost ratio is greater
900	900	6 than one. The benefit-cost ratio is the ratio of the net
901	901	7 present value of the total benefits of the program to the net
902	902	8 present value of the total costs as calculated over the
903	903	9 lifetime of the measures. A total resource cost test compares
904	904	10 the sum of avoided electric utility costs, representing the
905	905	11 benefits that accrue to the system and the participant in the
906	906	12 delivery of those efficiency measures and including avoided
907	907	13 costs associated with reduced use of natural gas or other
908	908	14 fuels, avoided costs associated with reduced water
909	909	15 consumption, and avoided costs associated with reduced
910	910	16 operation and maintenance costs, as well as other quantifiable
911	911	17 societal benefits, to the sum of all incremental costs of
912	912	18 end-use measures that are implemented due to the program
913	913	19 (including both utility and participant contributions), plus
914	914	20 costs to administer, deliver, and evaluate each demand-side
915	915	21 program, to quantify the net savings obtained by substituting
916	916	22 the demand-side program for supply resources. In calculating
917	917	23 avoided costs of power and energy that an electric utility
918	918	24 would otherwise have had to acquire, reasonable estimates
919	919	25 shall be included of financial costs likely to be imposed by
920	920	26 future regulations and legislation on emissions of greenhouse
921	921
922	922
923	923
924	924
925	925
926	926	SB2497 - 25 - LRB104 12224 JDS 22330 b
927	927
928	928
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930	930	SB2497 - 26 - LRB104 12224 JDS 22330 b
931	931	1 gases. In discounting future societal costs and benefits for
932	932	2 the purpose of calculating net present values, a societal
933	933	3 discount rate based on actual, long-term Treasury bond yields
934	934	4 should be used. Notwithstanding anything to the contrary, the
935	935	5 TRC test shall not include or take into account a calculation
936	936	6 of market price suppression effects or demand reduction
937	937	7 induced price effects.
938	938	8 "Utility-scale solar project" means an electric generating
939	939	9 facility that:
940	940	10 (1) generates electricity using photovoltaic cells;
941	941	11 and
942	942	12 (2) has a nameplate capacity that is greater than
943	943	13 5,000 kilowatts.
944	944	14 "Utility-scale wind project" means an electric generating
945	945	15 facility that:
946	946	16 (1) generates electricity using wind; and
947	947	17 (2) has a nameplate capacity that is greater than
948	948	18 5,000 kilowatts.
949	949	19 "Waste Heat to Power Systems" means systems that capture
950	950	20 and generate electricity from energy that would otherwise be
951	951	21 lost to the atmosphere without the use of additional fuel.
952	952	22 "Zero emission credit" means a tradable credit that
953	953	23 represents the environmental attributes of one megawatt hour
954	954	24 of energy produced from a zero emission facility.
955	955	25 "Zero emission facility" means a facility that: (1) is
956	956	26 fueled by nuclear power; and (2) is interconnected with PJM
957	957
958	958
959	959
960	960
961	961
962	962	SB2497 - 26 - LRB104 12224 JDS 22330 b
963	963
964	964
965	965	SB2497- 27 -LRB104 12224 JDS 22330 b SB2497 - 27 - LRB104 12224 JDS 22330 b
966	966	SB2497 - 27 - LRB104 12224 JDS 22330 b
967	967	1 Interconnection, LLC or the Midcontinent Independent System
968	968	2 Operator, Inc., or their successors.
969	969	3 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
970	970	4 103-380, eff. 1-1-24.)
971	971	5 (20 ILCS 3855/1-20)
972	972	6 Sec. 1-20. General powers and duties of the Agency.
973	973	7 (a) The Agency is authorized to do each of the following:
974	974	8 (1) Develop electricity procurement plans to ensure
975	975	9 adequate, reliable, affordable, efficient, and
976	976	10 environmentally sustainable electric service at the lowest
977	977	11 total cost over time, taking into account any benefits of
978	978	12 price stability, for electric utilities that on December
979	979	13 31, 2005 provided electric service to at least 100,000
980	980	14 customers in Illinois and for small multi-jurisdictional
981	981	15 electric utilities that (A) on December 31, 2005 served
982	982	16 less than 100,000 customers in Illinois and (B) request a
983	983	17 procurement plan for their Illinois jurisdictional load.
984	984	18 Except as provided in paragraph (1.5) of this subsection
985	985	19 (a), the electricity procurement plans shall be updated on
986	986	20 an annual basis and shall include electricity generated
987	987	21 from renewable resources sufficient to achieve the
988	988	22 standards specified in this Act. Beginning with the
989	989	23 delivery year commencing June 1, 2017, develop procurement
990	990	24 plans to include zero emission credits generated from zero
991	991	25 emission facilities sufficient to achieve the standards
992	992
993	993
994	994
995	995
996	996
997	997	SB2497 - 27 - LRB104 12224 JDS 22330 b
998	998
999	999
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1001	1001	SB2497 - 28 - LRB104 12224 JDS 22330 b
1002	1002	1 specified in this Act. Beginning with the delivery year
1003	1003	2 commencing on June 1, 2022, the Agency is authorized to
1004	1004	3 develop carbon mitigation credit procurement plans to
1005	1005	4 include carbon mitigation credits generated from
1006	1006	5 carbon-free energy resources sufficient to achieve the
1007	1007	6 standards specified in this Act.
1008	1008	7 (1.5) Develop a long-term renewable resources
1009	1009	8 procurement plan in accordance with subsection (c) of
1010	1010	9 Section 1-75 of this Act for renewable energy credits in
1011	1011	10 amounts sufficient to achieve the standards specified in
1012	1012	11 this Act for delivery years commencing June 1, 2017 and
1013	1013	12 for the programs and renewable energy credits specified in
1014	1014	13 Section 1-56 of this Act. Electricity procurement plans
1015	1015	14 for delivery years commencing after May 31, 2017, shall
1016	1016	15 not include procurement of renewable energy resources.
1017	1017	16 (2) Conduct competitive procurement processes to
1018	1018	17 procure the supply resources identified in the electricity
1019	1019	18 procurement plan, pursuant to Section 16-111.5 of the
1020	1020	19 Public Utilities Act, and, for the delivery year
1021	1021	20 commencing June 1, 2017, conduct procurement processes to
1022	1022	21 procure zero emission credits from zero emission
1023	1023	22 facilities, under subsection (d-5) of Section 1-75 of this
1024	1024	23 Act. For the delivery year commencing June 1, 2022, the
1025	1025	24 Agency is authorized to conduct procurement processes to
1026	1026	25 procure carbon mitigation credits from carbon-free energy
1027	1027	26 resources, under subsection (d-10) of Section 1-75 of this
1028	1028
1029	1029
1030	1030
1031	1031
1032	1032
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1034	1034
1035	1035
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1037	1037	SB2497 - 29 - LRB104 12224 JDS 22330 b
1038	1038	1 Act.
1039	1039	2 (2.5) Beginning with the procurement for the 2017
1040	1040	3 delivery year, conduct competitive procurement processes
1041	1041	4 and implement programs to procure renewable energy credits
1042	1042	5 identified in the long-term renewable resources
1043	1043	6 procurement plan developed and approved under subsection
1044	1044	7 (c) of Section 1-75 of this Act and Section 16-111.5 of the
1045	1045	8 Public Utilities Act.
1046	1046	9 (2.10) Oversee the procurement by electric utilities
1047	1047	10 that served more than 300,000 customers in this State as
1048	1048	11 of January 1, 2019 of renewable energy credits from new
1049	1049	12 renewable energy facilities to be installed, along with
1050	1050	13 energy storage facilities, at or adjacent to the sites of
1051	1051	14 electric generating facilities that burned coal as their
1052	1052	15 primary fuel source as of January 1, 2016 in accordance
1053	1053	16 with subsection (c-5) of Section 1-75 of this Act.
1054	1054	17 (2.15) Oversee the procurement by electric utilities
1055	1055	18 of renewable energy credits from newly modernized or
1056	1056	19 retooled hydropower dams or dams that have been converted
1057	1057	20 to support hydropower generation.
1058	1058	21 (3) Develop electric generation and co-generation
1059	1059	22 facilities that use indigenous coal or renewable
1060	1060	23 resources, or both, financed with bonds issued by the
1061	1061	24 Illinois Finance Authority.
1062	1062	25 (4) Supply electricity from the Agency's facilities at
1063	1063	26 cost to one or more of the following: municipal electric
1064	1064
1065	1065
1066	1066
1067	1067
1068	1068
1069	1069	SB2497 - 29 - LRB104 12224 JDS 22330 b
1070	1070
1071	1071
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1073	1073	SB2497 - 30 - LRB104 12224 JDS 22330 b
1074	1074	1 systems, governmental aggregators, or rural electric
1075	1075	2 cooperatives in Illinois.
1076	1076	3 (5) Conduct competitive solicitations to procure
1077	1077	4 energy storage credits sufficient to achieve, at minimum,
1078	1078	5 the energy storage standard under Section 1-93.
1079	1079	6 (b) Except as otherwise limited by this Act, the Agency
1080	1080	7 has all of the powers necessary or convenient to carry out the
1081	1081	8 purposes and provisions of this Act, including without
1082	1082	9 limitation, each of the following:
1083	1083	10 (1) To have a corporate seal, and to alter that seal at
1084	1084	11 pleasure, and to use it by causing it or a facsimile to be
1085	1085	12 affixed or impressed or reproduced in any other manner.
1086	1086	13 (2) To use the services of the Illinois Finance
1087	1087	14 Authority necessary to carry out the Agency's purposes.
1088	1088	15 (3) To negotiate and enter into loan agreements and
1089	1089	16 other agreements with the Illinois Finance Authority.
1090	1090	17 (4) To obtain and employ personnel and hire
1091	1091	18 consultants that are necessary to fulfill the Agency's
1092	1092	19 purposes, and to make expenditures for that purpose within
1093	1093	20 the appropriations for that purpose.
1094	1094	21 (5) To purchase, receive, take by grant, gift, devise,
1095	1095	22 bequest, or otherwise, lease, or otherwise acquire, own,
1096	1096	23 hold, improve, employ, use, and otherwise deal in and
1097	1097	24 with, real or personal property whether tangible or
1098	1098	25 intangible, or any interest therein, within the State.
1099	1099	26 (6) To acquire real or personal property, whether
1100	1100
1101	1101
1102	1102
1103	1103
1104	1104
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1106	1106
1107	1107
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1109	1109	SB2497 - 31 - LRB104 12224 JDS 22330 b
1110	1110	1 tangible or intangible, including without limitation
1111	1111	2 property rights, interests in property, franchises,
1112	1112	3 obligations, contracts, and debt and equity securities,
1113	1113	4 and to do so by the exercise of the power of eminent domain
1114	1114	5 in accordance with Section 1-21; except that any real
1115	1115	6 property acquired by the exercise of the power of eminent
1116	1116	7 domain must be located within the State.
1117	1117	8 (7) To sell, convey, lease, exchange, transfer,
1118	1118	9 abandon, or otherwise dispose of, or mortgage, pledge, or
1119	1119	10 create a security interest in, any of its assets,
1120	1120	11 properties, or any interest therein, wherever situated.
1121	1121	12 (8) To purchase, take, receive, subscribe for, or
1122	1122	13 otherwise acquire, hold, make a tender offer for, vote,
1123	1123	14 employ, sell, lend, lease, exchange, transfer, or
1124	1124	15 otherwise dispose of, mortgage, pledge, or grant a
1125	1125	16 security interest in, use, and otherwise deal in and with,
1126	1126	17 bonds and other obligations, shares, or other securities
1127	1127	18 (or interests therein) issued by others, whether engaged
1128	1128	19 in a similar or different business or activity.
1129	1129	20 (9) To make and execute agreements, contracts, and
1130	1130	21 other instruments necessary or convenient in the exercise
1131	1131	22 of the powers and functions of the Agency under this Act,
1132	1132	23 including contracts with any person, including personal
1133	1133	24 service contracts, or with any local government, State
1134	1134	25 agency, or other entity; and all State agencies and all
1135	1135	26 local governments are authorized to enter into and do all
1136	1136
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141	SB2497 - 31 - LRB104 12224 JDS 22330 b
1142	1142
1143	1143
1144	1144	SB2497- 32 -LRB104 12224 JDS 22330 b SB2497 - 32 - LRB104 12224 JDS 22330 b
1145	1145	SB2497 - 32 - LRB104 12224 JDS 22330 b
1146	1146	1 things necessary to perform any such agreement, contract,
1147	1147	2 or other instrument with the Agency. No such agreement,
1148	1148	3 contract, or other instrument shall exceed 40 years.
1149	1149	4 (10) To lend money, invest and reinvest its funds in
1150	1150	5 accordance with the Public Funds Investment Act, and take
1151	1151	6 and hold real and personal property as security for the
1152	1152	7 payment of funds loaned or invested.
1153	1153	8 (11) To borrow money at such rate or rates of interest
1154	1154	9 as the Agency may determine, issue its notes, bonds, or
1155	1155	10 other obligations to evidence that indebtedness, and
1156	1156	11 secure any of its obligations by mortgage or pledge of its
1157	1157	12 real or personal property, machinery, equipment,
1158	1158	13 structures, fixtures, inventories, revenues, grants, and
1159	1159	14 other funds as provided or any interest therein, wherever
1160	1160	15 situated.
1161	1161	16 (12) To enter into agreements with the Illinois
1162	1162	17 Finance Authority to issue bonds whether or not the income
1163	1163	18 therefrom is exempt from federal taxation.
1164	1164	19 (13) To procure insurance against any loss in
1165	1165	20 connection with its properties or operations in such
1166	1166	21 amount or amounts and from such insurers, including the
1167	1167	22 federal government, as it may deem necessary or desirable,
1168	1168	23 and to pay any premiums therefor.
1169	1169	24 (14) To negotiate and enter into agreements with
1170	1170	25 trustees or receivers appointed by United States
1171	1171	26 bankruptcy courts or federal district courts or in other
1172	1172
1173	1173
1174	1174
1175	1175
1176	1176
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1178	1178
1179	1179
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1181	1181	SB2497 - 33 - LRB104 12224 JDS 22330 b
1182	1182	1 proceedings involving adjustment of debts and authorize
1183	1183	2 proceedings involving adjustment of debts and authorize
1184	1184	3 legal counsel for the Agency to appear in any such
1185	1185	4 proceedings.
1186	1186	5 (15) To file a petition under Chapter 9 of Title 11 of
1187	1187	6 the United States Bankruptcy Code or take other similar
1188	1188	7 action for the adjustment of its debts.
1189	1189	8 (16) To enter into management agreements for the
1190	1190	9 operation of any of the property or facilities owned by
1191	1191	10 the Agency.
1192	1192	11 (17) To enter into an agreement to transfer and to
1193	1193	12 transfer any land, facilities, fixtures, or equipment of
1194	1194	13 the Agency to one or more municipal electric systems,
1195	1195	14 governmental aggregators, or rural electric agencies or
1196	1196	15 cooperatives, for such consideration and upon such terms
1197	1197	16 as the Agency may determine to be in the best interest of
1198	1198	17 the residents of Illinois.
1199	1199	18 (18) To enter upon any lands and within any building
1200	1200	19 whenever in its judgment it may be necessary for the
1201	1201	20 purpose of making surveys and examinations to accomplish
1202	1202	21 any purpose authorized by this Act.
1203	1203	22 (19) To maintain an office or offices at such place or
1204	1204	23 places in the State as it may determine.
1205	1205	24 (20) To request information, and to make any inquiry,
1206	1206	25 investigation, survey, or study that the Agency may deem
1207	1207	26 necessary to enable it effectively to carry out the
1208	1208
1209	1209
1210	1210
1211	1211
1212	1212
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1214	1214
1215	1215
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1217	1217	SB2497 - 34 - LRB104 12224 JDS 22330 b
1218	1218	1 provisions of this Act.
1219	1219	2 (21) To accept and expend appropriations.
1220	1220	3 (22) To engage in any activity or operation that is
1221	1221	4 incidental to and in furtherance of efficient operation to
1222	1222	5 accomplish the Agency's purposes, including hiring
1223	1223	6 employees that the Director deems essential for the
1224	1224	7 operations of the Agency.
1225	1225	8 (23) To adopt, revise, amend, and repeal rules with
1226	1226	9 respect to its operations, properties, and facilities as
1227	1227	10 may be necessary or convenient to carry out the purposes
1228	1228	11 of this Act, subject to the provisions of the Illinois
1229	1229	12 Administrative Procedure Act and Sections 1-22 and 1-35 of
1230	1230	13 this Act.
1231	1231	14 (24) To establish and collect charges and fees as
1232	1232	15 described in this Act.
1233	1233	16 (25) To conduct competitive gasification feedstock
1234	1234	17 procurement processes to procure the feedstocks for the
1235	1235	18 clean coal SNG brownfield facility in accordance with the
1236	1236	19 requirements of Section 1-78 of this Act.
1237	1237	20 (26) To review, revise, and approve sourcing
1238	1238	21 agreements and mediate and resolve disputes between gas
1239	1239	22 utilities and the clean coal SNG brownfield facility
1240	1240	23 pursuant to subsection (h-1) of Section 9-220 of the
1241	1241	24 Public Utilities Act.
1242	1242	25 (27) To request, review and accept proposals, execute
1243	1243	26 contracts, purchase renewable energy credits and otherwise
1244	1244
1245	1245
1246	1246
1247	1247
1248	1248
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1250	1250
1251	1251
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1253	1253	SB2497 - 35 - LRB104 12224 JDS 22330 b
1254	1254	1 dedicate funds from the Illinois Power Agency Renewable
1255	1255	2 Energy Resources Fund to create and carry out the
1256	1256	3 objectives of the Illinois Solar for All Program in
1257	1257	4 accordance with Section 1-56 of this Act.
1258	1258	5 (28) To ensure Illinois residents and business benefit
1259	1259	6 from programs administered by the Agency and are properly
1260	1260	7 protected from any deceptive or misleading marketing
1261	1261	8 practices by participants in the Agency's programs and
1262	1262	9 procurements.
1263	1263	10 (29) To request, review, and accept proposals; to
1264	1264	11 execute contracts; and to procure energy storage credits.
1265	1265	12 (c) In conducting the procurement of electricity or other
1266	1266	13 products, beginning January 1, 2022, the Agency shall not
1267	1267	14 procure any products or services from persons or organizations
1268	1268	15 that are in violation of the Displaced Energy Workers Bill of
1269	1269	16 Rights, as provided under the Energy Community Reinvestment
1270	1270	17 Act at the time of the procurement event or fail to comply the
1271	1271	18 labor standards established in subparagraph (Q) of paragraph
1272	1272	19 (1) of subsection (c) of Section 1-75.
1273	1273	20 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
1274	1274	21 (20 ILCS 3855/1-75)
1275	1275	22 Sec. 1-75. Planning and Procurement Bureau. The Planning
1276	1276	23 and Procurement Bureau has the following duties and
1277	1277	24 responsibilities:
1278	1278	25 (a) The Planning and Procurement Bureau shall each year,
1279	1279
1280	1280
1281	1281
1282	1282
1283	1283
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1285	1285
1286	1286
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1288	1288	SB2497 - 36 - LRB104 12224 JDS 22330 b
1289	1289	1 beginning in 2008, develop procurement plans and conduct
1290	1290	2 competitive procurement processes in accordance with the
1291	1291	3 requirements of Section 16-111.5 of the Public Utilities Act
1292	1292	4 for the eligible retail customers of electric utilities that
1293	1293	5 on December 31, 2005 provided electric service to at least
1294	1294	6 100,000 customers in Illinois. Beginning with the delivery
1295	1295	7 year commencing on June 1, 2017, the Planning and Procurement
1296	1296	8 Bureau shall develop plans and processes for the procurement
1297	1297	9 of zero emission credits from zero emission facilities in
1298	1298	10 accordance with the requirements of subsection (d-5) of this
1299	1299	11 Section. Beginning on the effective date of this amendatory
1300	1300	12 Act of the 102nd General Assembly, the Planning and
1301	1301	13 Procurement Bureau shall develop plans and processes for the
1302	1302	14 procurement of carbon mitigation credits from carbon-free
1303	1303	15 energy resources in accordance with the requirements of
1304	1304	16 subsection (d-10) of this Section. The Planning and
1305	1305	17 Procurement Bureau shall also develop procurement plans and
1306	1306	18 conduct competitive procurement processes in accordance with
1307	1307	19 the requirements of Section 16-111.5 of the Public Utilities
1308	1308	20 Act for the eligible retail customers of small
1309	1309	21 multi-jurisdictional electric utilities that (i) on December
1310	1310	22 31, 2005 served less than 100,000 customers in Illinois and
1311	1311	23 (ii) request a procurement plan for their Illinois
1312	1312	24 jurisdictional load. This Section shall not apply to a small
1313	1313	25 multi-jurisdictional utility until such time as a small
1314	1314	26 multi-jurisdictional utility requests the Agency to prepare a
1315	1315
1316	1316
1317	1317
1318	1318
1319	1319
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1321	1321
1322	1322
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1324	1324	SB2497 - 37 - LRB104 12224 JDS 22330 b
1325	1325	1 procurement plan for their Illinois jurisdictional load. For
1326	1326	2 the purposes of this Section, the term "eligible retail
1327	1327	3 customers" has the same definition as found in Section
1328	1328	4 16-111.5(a) of the Public Utilities Act.
1329	1329	5 Beginning with the plan or plans to be implemented in the
1330	1330	6 2017 delivery year, the Agency shall no longer include the
1331	1331	7 procurement of renewable energy resources in the annual
1332	1332	8 procurement plans required by this subsection (a), except as
1333	1333	9 provided in subsection (q) of Section 16-111.5 of the Public
1334	1334	10 Utilities Act, and shall instead develop a long-term renewable
1335	1335	11 resources procurement plan in accordance with subsection (c)
1336	1336	12 of this Section and Section 16-111.5 of the Public Utilities
1337	1337	13 Act.
1338	1338	14 In accordance with subsection (c-5) of this Section, the
1339	1339	15 Planning and Procurement Bureau shall oversee the procurement
1340	1340	16 by electric utilities that served more than 300,000 retail
1341	1341	17 customers in this State as of January 1, 2019 of renewable
1342	1342	18 energy credits from new utility-scale solar projects to be
1343	1343	19 installed, along with energy storage facilities, at or
1344	1344	20 adjacent to the sites of electric generating facilities that,
1345	1345	21 as of January 1, 2016, burned coal as their primary fuel
1346	1346	22 source.
1347	1347	23 (1) The Agency shall each year, beginning in 2008, as
1348	1348	24 needed, issue a request for qualifications for experts or
1349	1349	25 expert consulting firms to develop the procurement plans
1350	1350	26 in accordance with Section 16-111.5 of the Public
1351	1351
1352	1352
1353	1353
1354	1354
1355	1355
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1357	1357
1358	1358
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1361	1361	1 Utilities Act. In order to qualify an expert or expert
1362	1362	2 consulting firm must have:
1363	1363	3 (A) direct previous experience assembling
1364	1364	4 large-scale power supply plans or portfolios for
1365	1365	5 end-use customers;
1366	1366	6 (B) an advanced degree in economics, mathematics,
1367	1367	7 engineering, risk management, or a related area of
1368	1368	8 study;
1369	1369	9 (C) 10 years of experience in the electricity
1370	1370	10 sector, including managing supply risk;
1371	1371	11 (D) expertise in wholesale electricity market
1372	1372	12 rules, including those established by the Federal
1373	1373	13 Energy Regulatory Commission and regional transmission
1374	1374	14 organizations;
1375	1375	15 (E) expertise in credit protocols and familiarity
1376	1376	16 with contract protocols;
1377	1377	17 (F) adequate resources to perform and fulfill the
1378	1378	18 required functions and responsibilities; and
1379	1379	19 (G) the absence of a conflict of interest and
1380	1380	20 inappropriate bias for or against potential bidders or
1381	1381	21 the affected electric utilities.
1382	1382	22 (2) The Agency shall each year, as needed, issue a
1383	1383	23 request for qualifications for a procurement administrator
1384	1384	24 to conduct the competitive procurement processes in
1385	1385	25 accordance with Section 16-111.5 of the Public Utilities
1386	1386	26 Act. In order to qualify an expert or expert consulting
1387	1387
1388	1388
1389	1389
1390	1390
1391	1391
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1393	1393
1394	1394
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1396	1396	SB2497 - 39 - LRB104 12224 JDS 22330 b
1397	1397	1 firm must have:
1398	1398	2 (A) direct previous experience administering a
1399	1399	3 large-scale competitive procurement process;
1400	1400	4 (B) an advanced degree in economics, mathematics,
1401	1401	5 engineering, or a related area of study;
1402	1402	6 (C) 10 years of experience in the electricity
1403	1403	7 sector, including risk management experience;
1404	1404	8 (D) expertise in wholesale electricity market
1405	1405	9 rules, including those established by the Federal
1406	1406	10 Energy Regulatory Commission and regional transmission
1407	1407	11 organizations;
1408	1408	12 (E) expertise in credit and contract protocols;
1409	1409	13 (F) adequate resources to perform and fulfill the
1410	1410	14 required functions and responsibilities; and
1411	1411	15 (G) the absence of a conflict of interest and
1412	1412	16 inappropriate bias for or against potential bidders or
1413	1413	17 the affected electric utilities.
1414	1414	18 (3) The Agency shall provide affected utilities and
1415	1415	19 other interested parties with the lists of qualified
1416	1416	20 experts or expert consulting firms identified through the
1417	1417	21 request for qualifications processes that are under
1418	1418	22 consideration to develop the procurement plans and to
1419	1419	23 serve as the procurement administrator. The Agency shall
1420	1420	24 also provide each qualified expert's or expert consulting
1421	1421	25 firm's response to the request for qualifications. All
1422	1422	26 information provided under this subparagraph shall also be
1423	1423
1424	1424
1425	1425
1426	1426
1427	1427
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1429	1429
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1433	1433	1 provided to the Commission. The Agency may provide by rule
1434	1434	2 for fees associated with supplying the information to
1435	1435	3 utilities and other interested parties. These parties
1436	1436	4 shall, within 5 business days, notify the Agency in
1437	1437	5 writing if they object to any experts or expert consulting
1438	1438	6 firms on the lists. Objections shall be based on:
1439	1439	7 (A) failure to satisfy qualification criteria;
1440	1440	8 (B) identification of a conflict of interest; or
1441	1441	9 (C) evidence of inappropriate bias for or against
1442	1442	10 potential bidders or the affected utilities.
1443	1443	11 The Agency shall remove experts or expert consulting
1444	1444	12 firms from the lists within 10 days if there is a
1445	1445	13 reasonable basis for an objection and provide the updated
1446	1446	14 lists to the affected utilities and other interested
1447	1447	15 parties. If the Agency fails to remove an expert or expert
1448	1448	16 consulting firm from a list, an objecting party may seek
1449	1449	17 review by the Commission within 5 days thereafter by
1450	1450	18 filing a petition, and the Commission shall render a
1451	1451	19 ruling on the petition within 10 days. There is no right of
1452	1452	20 appeal of the Commission's ruling.
1453	1453	21 (4) The Agency shall issue requests for proposals to
1454	1454	22 the qualified experts or expert consulting firms to
1455	1455	23 develop a procurement plan for the affected utilities and
1456	1456	24 to serve as procurement administrator.
1457	1457	25 (5) The Agency shall select an expert or expert
1458	1458	26 consulting firm to develop procurement plans based on the
1459	1459
1460	1460
1461	1461
1462	1462
1463	1463
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1465	1465
1466	1466
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1469	1469	1 proposals submitted and shall award contracts of up to 5
1470	1470	2 years to those selected.
1471	1471	3 (6) The Agency shall select an expert or expert
1472	1472	4 consulting firm, with approval of the Commission, to serve
1473	1473	5 as procurement administrator based on the proposals
1474	1474	6 submitted. If the Commission rejects, within 5 days, the
1475	1475	7 Agency's selection, the Agency shall submit another
1476	1476	8 recommendation within 3 days based on the proposals
1477	1477	9 submitted. The Agency shall award a 5-year contract to the
1478	1478	10 expert or expert consulting firm so selected with
1479	1479	11 Commission approval.
1480	1480	12 (b) The experts or expert consulting firms retained by the
1481	1481	13 Agency shall, as appropriate, prepare procurement plans, and
1482	1482	14 conduct a competitive procurement process as prescribed in
1483	1483	15 Section 16-111.5 of the Public Utilities Act, to ensure
1484	1484	16 adequate, reliable, affordable, efficient, and environmentally
1485	1485	17 sustainable electric service at the lowest total cost over
1486	1486	18 time, taking into account any benefits of price stability, for
1487	1487	19 eligible retail customers of electric utilities that on
1488	1488	20 December 31, 2005 provided electric service to at least
1489	1489	21 100,000 customers in the State of Illinois, and for eligible
1490	1490	22 Illinois retail customers of small multi-jurisdictional
1491	1491	23 electric utilities that (i) on December 31, 2005 served less
1492	1492	24 than 100,000 customers in Illinois and (ii) request a
1493	1493	25 procurement plan for their Illinois jurisdictional load.
1494	1494	26 (c) Renewable portfolio standard.
1495	1495
1496	1496
1497	1497
1498	1498
1499	1499
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1501	1501
1502	1502
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1505	1505	1 (1)(A) The Agency shall develop a long-term renewable
1506	1506	2 resources procurement plan that shall include procurement
1507	1507	3 programs and competitive procurement events necessary to
1508	1508	4 meet the goals set forth in this subsection (c). The
1509	1509	5 initial long-term renewable resources procurement plan
1510	1510	6 shall be released for comment no later than 160 days after
1511	1511	7 June 1, 2017 (the effective date of Public Act 99-906).
1512	1512	8 The Agency shall review, and may revise on an expedited
1513	1513	9 basis, the long-term renewable resources procurement plan
1514	1514	10 at least every 2 years, which shall be conducted in
1515	1515	11 conjunction with the procurement plan under Section
1516	1516	12 16-111.5 of the Public Utilities Act to the extent
1517	1517	13 practicable to minimize administrative expense. No later
1518	1518	14 than 120 days after the effective date of this amendatory
1519	1519	15 Act of the 103rd General Assembly, the Agency shall
1520	1520	16 release for comment a revision to the long-term renewable
1521	1521	17 resources procurement plan, updating elements of the most
1522	1522	18 recently approved plan as needed to comply with this
1523	1523	19 amendatory Act of the 103rd General Assembly, and any
1524	1524	20 long-term renewable resources procurement plan update
1525	1525	21 published by the Agency but not yet approved by the
1526	1526	22 Illinois Commerce Commission shall be withdrawn. The
1527	1527	23 long-term renewable resources procurement plans shall be
1528	1528	24 subject to review and approval by the Commission under
1529	1529	25 Section 16-111.5 of the Public Utilities Act.
1530	1530	26 (B) Subject to subparagraph (F) of this paragraph (1),
1531	1531
1532	1532
1533	1533
1534	1534
1535	1535
1536	1536	SB2497 - 42 - LRB104 12224 JDS 22330 b
1537	1537
1538	1538
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1541	1541	1 the long-term renewable resources procurement plan shall
1542	1542	2 attempt to meet the goals for procurement of renewable
1543	1543	3 energy credits at levels of at least the following overall
1544	1544	4 percentages: 13% by the 2017 delivery year; increasing by
1545	1545	5 at least 1.5% each delivery year thereafter to at least
1546	1546	6 25% by the 2025 delivery year; increasing by at least 3%
1547	1547	7 each delivery year thereafter to at least 40% by the 2030
1548	1548	8 delivery year, and continuing at no less than 40% for each
1549	1549	9 delivery year thereafter. The Agency shall attempt to
1550	1550	10 procure 50% by delivery year 2040. The Agency shall
1551	1551	11 determine the annual increase between delivery year 2030
1552	1552	12 and delivery year 2040, if any, taking into account energy
1553	1553	13 demand, other energy resources, and other public policy
1554	1554	14 goals. In the event of a conflict between these goals and
1555	1555	15 the new wind, new photovoltaic, and hydropower procurement
1556	1556	16 requirements described in items (i) through (iii) of
1557	1557	17 subparagraph (C) of this paragraph (1), the long-term plan
1558	1558	18 shall prioritize compliance with the new wind, new
1559	1559	19 photovoltaic, and hydropower procurement requirements
1560	1560	20 described in items (i) through (iii) of subparagraph (C)
1561	1561	21 of this paragraph (1) over the annual percentage targets
1562	1562	22 described in this subparagraph (B). The Agency shall not
1563	1563	23 comply with the annual percentage targets described in
1564	1564	24 this subparagraph (B) by procuring renewable energy
1565	1565	25 credits that are unlikely to lead to the development of
1566	1566	26 new renewable resources or new, modernized, or retooled
1567	1567
1568	1568
1569	1569
1570	1570
1571	1571
1572	1572	SB2497 - 43 - LRB104 12224 JDS 22330 b
1573	1573
1574	1574
1575	1575	SB2497- 44 -LRB104 12224 JDS 22330 b SB2497 - 44 - LRB104 12224 JDS 22330 b
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1577	1577	1 hydropower facilities.
1578	1578	2 For the delivery year beginning June 1, 2017, the
1579	1579	3 procurement plan shall attempt to include, subject to the
1580	1580	4 prioritization outlined in this subparagraph (B),
1581	1581	5 cost-effective renewable energy resources equal to at
1582	1582	6 least 13% of each utility's load for eligible retail
1583	1583	7 customers and 13% of the applicable portion of each
1584	1584	8 utility's load for retail customers who are not eligible
1585	1585	9 retail customers, which applicable portion shall equal 50%
1586	1586	10 of the utility's load for retail customers who are not
1587	1587	11 eligible retail customers on February 28, 2017.
1588	1588	12 For the delivery year beginning June 1, 2018, the
1589	1589	13 procurement plan shall attempt to include, subject to the
1590	1590	14 prioritization outlined in this subparagraph (B),
1591	1591	15 cost-effective renewable energy resources equal to at
1592	1592	16 least 14.5% of each utility's load for eligible retail
1593	1593	17 customers and 14.5% of the applicable portion of each
1594	1594	18 utility's load for retail customers who are not eligible
1595	1595	19 retail customers, which applicable portion shall equal 75%
1596	1596	20 of the utility's load for retail customers who are not
1597	1597	21 eligible retail customers on February 28, 2017.
1598	1598	22 For the delivery year beginning June 1, 2019, and for
1599	1599	23 each year thereafter, the procurement plans shall attempt
1600	1600	24 to include, subject to the prioritization outlined in this
1601	1601	25 subparagraph (B), cost-effective renewable energy
1602	1602	26 resources equal to a minimum percentage of each utility's
1603	1603
1604	1604
1605	1605
1606	1606
1607	1607
1608	1608	SB2497 - 44 - LRB104 12224 JDS 22330 b
1609	1609
1610	1610
1611	1611	SB2497- 45 -LRB104 12224 JDS 22330 b SB2497 - 45 - LRB104 12224 JDS 22330 b
1612	1612	SB2497 - 45 - LRB104 12224 JDS 22330 b
1613	1613	1 load for all retail customers as follows: 16% by June 1,
1614	1614	2 2019; increasing by 1.5% each year thereafter to 25% by
1615	1615	3 June 1, 2025; and 25% by June 1, 2026; increasing by at
1616	1616	4 least 3% each delivery year thereafter to at least 40% by
1617	1617	5 the 2030 delivery year, and continuing at no less than 40%
1618	1618	6 for each delivery year thereafter. The Agency shall
1619	1619	7 attempt to procure 50% by delivery year 2040. The Agency
1620	1620	8 shall determine the annual increase between delivery year
1621	1621	9 2030 and delivery year 2040, if any, taking into account
1622	1622	10 energy demand, other energy resources, and other public
1623	1623	11 policy goals.
1624	1624	12 For each delivery year, the Agency shall first
1625	1625	13 recognize each utility's obligations for that delivery
1626	1626	14 year under existing contracts. Any renewable energy
1627	1627	15 credits under existing contracts, including renewable
1628	1628	16 energy credits as part of renewable energy resources,
1629	1629	17 shall be used to meet the goals set forth in this
1630	1630	18 subsection (c) for the delivery year.
1631	1631	19 (C) The long-term renewable resources procurement plan
1632	1632	20 described in subparagraph (A) of this paragraph (1) shall
1633	1633	21 include the procurement of renewable energy credits from
1634	1634	22 new projects pursuant to the following terms:
1635	1635	23 (i) At least 10,000,000 renewable energy credits
1636	1636	24 delivered annually by the end of the 2021 delivery
1637	1637	25 year, and increasing ratably to reach 45,000,000
1638	1638	26 renewable energy credits delivered annually from new
1639	1639
1640	1640
1641	1641
1642	1642
1643	1643
1644	1644	SB2497 - 45 - LRB104 12224 JDS 22330 b
1645	1645
1646	1646
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1648	1648	SB2497 - 46 - LRB104 12224 JDS 22330 b
1649	1649	1 wind and solar projects, from repowered wind projects,
1650	1650	2 or from retooled hydropower facilities by the end of
1651	1651	3 delivery year 2030 such that the goals in subparagraph
1652	1652	4 (B) of this paragraph (1) are met entirely by
1653	1653	5 procurements of renewable energy credits from new wind
1654	1654	6 and photovoltaic projects. Of that amount, to the
1655	1655	7 extent possible, the Agency shall endeavor to procure
1656	1656	8 45% from new and repowered wind and hydropower
1657	1657	9 projects and shall procure at least 55% from
1658	1658	10 photovoltaic projects. Of the amount to be procured
1659	1659	11 from photovoltaic projects, the Agency shall procure:
1660	1660	12 at least 50% from solar photovoltaic projects using
1661	1661	13 the program outlined in subparagraph (K) of this
1662	1662	14 paragraph (1) from distributed renewable energy
1663	1663	15 generation devices or community renewable generation
1664	1664	16 projects; at least 47% from utility-scale solar
1665	1665	17 projects; at least 3% from brownfield site
1666	1666	18 photovoltaic projects that are not community renewable
1667	1667	19 generation projects. The Agency may propose
1668	1668	20 adjustments to these percentages, including
1669	1669	21 establishing percentage-based goals for the
1670	1670	22 procurement of renewable energy credits from retooled
1671	1671	23 hydropower facilities and repowered wind projects
1672	1672	24 through its long-term renewable resources plan
1673	1673	25 described in subparagraph (A) of this paragraph (1),
1674	1674	26 as necessary, based on developer interest, market
1675	1675
1676	1676
1677	1677
1678	1678
1679	1679
1680	1680	SB2497 - 46 - LRB104 12224 JDS 22330 b
1681	1681
1682	1682
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1684	1684	SB2497 - 47 - LRB104 12224 JDS 22330 b
1685	1685	1 conditions, budget considerations, and other material
1686	1686	2 factors.
1687	1687	3 In developing the long-term renewable resources
1688	1688	4 procurement plan, the Agency shall consider other
1689	1689	5 approaches, in addition to competitive procurements,
1690	1690	6 that can be used to procure renewable energy credits
1691	1691	7 from brownfield site photovoltaic projects and thereby
1692	1692	8 help return blighted or contaminated land to
1693	1693	9 productive use while enhancing public health and the
1694	1694	10 well-being of Illinois residents, including those in
1695	1695	11 environmental justice communities, as defined using
1696	1696	12 existing methodologies and findings used by the Agency
1697	1697	13 and its Administrator in its Illinois Solar for All
1698	1698	14 Program. The Agency shall also consider other
1699	1699	15 approaches, in addition to competitive procurements,
1700	1700	16 to procure renewable energy credits from new and
1701	1701	17 existing hydropower facilities to support the
1702	1702	18 development and maintenance of these facilities. The
1703	1703	19 Agency shall explore options to convert existing dams
1704	1704	20 but shall not consider approaches to develop new dams
1705	1705	21 where they do not already exist. To encourage
1706	1706	22 continued operation of utility-scale wind projects,
1707	1707	23 the Agency shall consider and may propose other
1708	1708	24 approaches in addition to competitive procurements to
1709	1709	25 procure renewable energy credits from repowered wind
1710	1710	26 projects.
1711	1711
1712	1712
1713	1713
1714	1714
1715	1715
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1717	1717
1718	1718
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1721	1721	1 (ii) In any given delivery year, if forecasted
1722	1722	2 expenses are less than the maximum budget available
1723	1723	3 under subparagraph (E) of this paragraph (1), the
1724	1724	4 Agency shall continue to procure new renewable energy
1725	1725	5 credits until that budget is exhausted in the manner
1726	1726	6 outlined in item (i) of this subparagraph (C).
1727	1727	7 (iii) For purposes of this Section:
1728	1728	8 "New wind projects" means wind renewable energy
1729	1729	9 facilities that are energized after June 1, 2017 for
1730	1730	10 the delivery year commencing June 1, 2017.
1731	1731	11 "New photovoltaic projects" means photovoltaic
1732	1732	12 renewable energy facilities that are energized after
1733	1733	13 June 1, 2017. Photovoltaic projects developed under
1734	1734	14 Section 1-56 of this Act shall not apply towards the
1735	1735	15 new photovoltaic project requirements in this
1736	1736	16 subparagraph (C).
1737	1737	17 For purposes of calculating whether the Agency has
1738	1738	18 procured enough new wind and solar renewable energy
1739	1739	19 credits required by this subparagraph (C), renewable
1740	1740	20 energy facilities that have a multi-year renewable
1741	1741	21 energy credit delivery contract with the utility
1742	1742	22 through at least delivery year 2030 shall be
1743	1743	23 considered new, however no renewable energy credits
1744	1744	24 from contracts entered into before June 1, 2021 shall
1745	1745	25 be used to calculate whether the Agency has procured
1746	1746	26 the correct proportion of new wind and new solar
1747	1747
1748	1748
1749	1749
1750	1750
1751	1751
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1753	1753
1754	1754
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1757	1757	1 contracts described in this subparagraph (C) for
1758	1758	2 delivery year 2021 and thereafter.
1759	1759	3 (D) Renewable energy credits shall be cost effective.
1760	1760	4 For purposes of this subsection (c), "cost effective"
1761	1761	5 means that the costs of procuring renewable energy
1762	1762	6 resources do not cause the limit stated in subparagraph
1763	1763	7 (E) of this paragraph (1) to be exceeded and, for
1764	1764	8 renewable energy credits procured through a competitive
1765	1765	9 procurement event, do not exceed benchmarks based on
1766	1766	10 market prices for like products in the region. For
1767	1767	11 purposes of this subsection (c), "like products" means
1768	1768	12 contracts for renewable energy credits from the same or
1769	1769	13 substantially similar technology, same or substantially
1770	1770	14 similar vintage (new or existing), the same or
1771	1771	15 substantially similar quantity, and the same or
1772	1772	16 substantially similar contract length and structure.
1773	1773	17 Benchmarks shall reflect development, financing, or
1774	1774	18 related costs resulting from requirements imposed through
1775	1775	19 other provisions of State law, including, but not limited
1776	1776	20 to, requirements in subparagraphs (P) and (Q) of this
1777	1777	21 paragraph (1) and the Renewable Energy Facilities
1778	1778	22 Agricultural Impact Mitigation Act. Confidential
1779	1779	23 benchmarks shall be developed by the procurement
1780	1780	24 administrator, in consultation with the Commission staff,
1781	1781	25 Agency staff, and the procurement monitor and shall be
1782	1782	26 subject to Commission review and approval. If price
1783	1783
1784	1784
1785	1785
1786	1786
1787	1787
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1789	1789
1790	1790
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1793	1793	1 benchmarks for like products in the region are not
1794	1794	2 available, the procurement administrator shall establish
1795	1795	3 price benchmarks based on publicly available data on
1796	1796	4 regional technology costs and expected current and future
1797	1797	5 regional energy prices. Prior to a procurement, the Agency
1798	1798	6 shall ensure that the procurement administrator considers
1799	1799	7 comments from potential bidders regarding inputs,
1800	1800	8 structure, and methodology of the benchmark for the
1801	1801	9 procurement, including costs and risks of development,
1802	1802	10 construction, financing, or other categories as determined
1803	1803	11 by the Agency. In the request for comments on the
1804	1804	12 benchmark, the procurement administrator shall provide all
1805	1805	13 potential bidders with sufficient information about the
1806	1806	14 structure, methodology, and inputs for previous benchmarks
1807	1807	15 to allow for informed comment. The benchmarks in this
1808	1808	16 Section shall not be used to curtail or otherwise reduce
1809	1809	17 contractual obligations entered into by or through the
1810	1810	18 Agency prior to June 1, 2017 (the effective date of Public
1811	1811	19 Act 99-906).
1812	1812	20 (E) For purposes of this subsection (c), the required
1813	1813	21 procurement of cost-effective renewable energy resources
1814	1814	22 for a particular year commencing prior to June 1, 2017
1815	1815	23 shall be measured as a percentage of the actual amount of
1816	1816	24 electricity (megawatt-hours) supplied by the electric
1817	1817	25 utility to eligible retail customers in the delivery year
1818	1818	26 ending immediately prior to the procurement, and, for
1819	1819
1820	1820
1821	1821
1822	1822
1823	1823
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1825	1825
1826	1826
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1828	1828	SB2497 - 51 - LRB104 12224 JDS 22330 b
1829	1829	1 delivery years commencing on and after June 1, 2017, the
1830	1830	2 required procurement of cost-effective renewable energy
1831	1831	3 resources for a particular year shall be measured as a
1832	1832	4 percentage of the actual amount of electricity
1833	1833	5 (megawatt-hours) delivered by the electric utility in the
1834	1834	6 delivery year ending immediately prior to the procurement,
1835	1835	7 to all retail customers in its service territory. For
1836	1836	8 purposes of this subsection (c), the amount paid per
1837	1837	9 kilowatthour means the total amount paid for electric
1838	1838	10 service expressed on a per kilowatthour basis. For
1839	1839	11 purposes of this subsection (c), the total amount paid for
1840	1840	12 electric service includes without limitation amounts paid
1841	1841	13 for supply, transmission, capacity, distribution,
1842	1842	14 surcharges, and add-on taxes.
1843	1843	15 Notwithstanding the requirements of this subsection
1844	1844	16 (c), and except as provided in subparagraph (E-5) of
1845	1845	17 paragraph (1) of this subsection (c), the total of
1846	1846	18 renewable energy resources procured under the procurement
1847	1847	19 plan for any single year shall be subject to the
1848	1848	20 limitations of this subparagraph (E). Such procurement
1849	1849	21 shall be reduced for all retail customers based on the
1850	1850	22 amount necessary to limit the annual estimated average net
1851	1851	23 increase due to the costs of these resources included in
1852	1852	24 the amounts paid by eligible retail customers in
1853	1853	25 connection with electric service to no more than 4.25% of
1854	1854	26 the amount paid per kilowatthour by those customers during
1855	1855
1856	1856
1857	1857
1858	1858
1859	1859
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1861	1861
1862	1862
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1865	1865	1 the year ending May 31, 2009. To arrive at a maximum dollar
1866	1866	2 amount of renewable energy resources to be procured for
1867	1867	3 the particular delivery year, the resulting per
1868	1868	4 kilowatthour amount shall be applied to the actual amount
1869	1869	5 of kilowatthours of electricity delivered, or applicable
1870	1870	6 portion of such amount as specified in paragraph (1) of
1871	1871	7 this subsection (c), as applicable, by the electric
1872	1872	8 utility in the delivery year immediately prior to the
1873	1873	9 procurement to all retail customers in its service
1874	1874	10 territory. The calculations required by this subparagraph
1875	1875	11 (E) shall be made only once for each delivery year at the
1876	1876	12 time that the renewable energy resources are procured.
1877	1877	13 Once the determination as to the amount of renewable
1878	1878	14 energy resources to procure is made based on the
1879	1879	15 calculations set forth in this subparagraph (E) and the
1880	1880	16 contracts procuring those amounts are executed, no
1881	1881	17 subsequent rate impact determinations shall be made and no
1882	1882	18 adjustments to those contract amounts shall be allowed. As
1883	1883	19 provided in subparagraph (E-5) of paragraph (1) of this
1884	1884	20 subsection (c), the seller shall be entitled to full,
1885	1885	21 prompt, and uninterrupted payment under the applicable
1886	1886	22 contract notwithstanding the application of this
1887	1887	23 subparagraph (E), and all All costs incurred under such
1888	1888	24 contracts shall be fully recoverable by the electric
1889	1889	25 utility as provided in this Section.
1890	1890	26 (E-5) If, for a particular delivery year, the
1891	1891
1892	1892
1893	1893
1894	1894
1895	1895
1896	1896	SB2497 - 52 - LRB104 12224 JDS 22330 b
1897	1897
1898	1898
1899	1899	SB2497- 53 -LRB104 12224 JDS 22330 b SB2497 - 53 - LRB104 12224 JDS 22330 b
1900	1900	SB2497 - 53 - LRB104 12224 JDS 22330 b
1901	1901	1 limitation on the amount of renewable energy resources to
1902	1902	2 be procured, as calculated pursuant to subparagraph (E) of
1903	1903	3 paragraph (1) of this subsection (c), would result in an
1904	1904	4 insufficient collection of funds to fully pay amounts due
1905	1905	5 to a seller under existing contracts executed under this
1906	1906	6 Section or executed under Section 1-56 of this Act, then
1907	1907	7 the following provisions shall apply to ensure full and
1908	1908	8 uninterrupted payment is made to such seller or sellers:
1909	1909	9 (i) If the electric utility has retained unspent
1910	1910	10 funds in an interest-bearing account as prescribed in
1911	1911	11 subsection (k) of Section 16-108 of the Public
1912	1912	12 Utilities Act, then the utility shall use those funds
1913	1913	13 to remit full payment to the sellers to ensure prompt
1914	1914	14 and uninterrupted payment of existing contractual
1915	1915	15 obligation.
1916	1916	16 (ii) If the funds described in item (i) of this
1917	1917	17 subparagraph (E-5) are insufficient to satisfy all
1918	1918	18 existing contractual obligations, then the electric
1919	1919	19 utility shall, nonetheless, remit full payment to the
1920	1920	20 sellers to ensure prompt and uninterrupted payment of
1921	1921	21 existing contractual obligations, provided that the
1922	1922	22 full costs shall be recoverable by the utility in
1923	1923	23 accordance with part (ee) of item (iv) of this
1924	1924	24 subparagraph (E-5).
1925	1925	25 (iii) The Agency shall promptly notify the
1926	1926	26 Commission that existing contractual obligations are
1927	1927
1928	1928
1929	1929
1930	1930
1931	1931
1932	1932	SB2497 - 53 - LRB104 12224 JDS 22330 b
1933	1933
1934	1934
1935	1935	SB2497- 54 -LRB104 12224 JDS 22330 b SB2497 - 54 - LRB104 12224 JDS 22330 b
1936	1936	SB2497 - 54 - LRB104 12224 JDS 22330 b
1937	1937	1 reasonably expected to exceed the maximum collection
1938	1938	2 authorized under subparagraph (E) of paragraph (1) of
1939	1939	3 this subsection (c) for the applicable delivery year.
1940	1940	4 The Agency shall also explain and confirm how the
1941	1941	5 operation of items (i) and (ii) of this subparagraph
1942	1942	6 (E-5) ensures that the electric utility will continue
1943	1943	7 to make prompt and uninterrupted payment under
1944	1944	8 existing contractual obligations. The Agency shall
1945	1945	9 provide this information to the Commission through a
1946	1946	10 notice filed in the Commission docket approving the
1947	1947	11 Agency's operative Long-Term Renewable Resources
1948	1948	12 Procurement Plan that includes the applicable delivery
1949	1949	13 year.
1950	1950	14 (iv) The Agency shall suspend or reduce new
1951	1951	15 contract awards for the procurement of renewable
1952	1952	16 energy credits until an Agency determination is made
1953	1953	17 under subparagraph (E) that additional procurements
1954	1954	18 would not cause the rate impact limitation of
1955	1955	19 subparagraph (E) to be exceeded. At least once
1956	1956	20 annually after the notice provided for in item (iii)
1957	1957	21 of this subparagraph (E-5) is made, the Agency shall
1958	1958	22 analyze existing contract obligations, projected
1959	1959	23 prices for indexed renewable energy credit contracts
1960	1960	24 executed under item (v) of subparagraph (G) of
1961	1961	25 paragraph (1) of subsection (c) of Section 1-75 of
1962	1962	26 this Act, and expected collections authorized under
1963	1963
1964	1964
1965	1965
1966	1966
1967	1967
1968	1968	SB2497 - 54 - LRB104 12224 JDS 22330 b
1969	1969
1970	1970
1971	1971	SB2497- 55 -LRB104 12224 JDS 22330 b SB2497 - 55 - LRB104 12224 JDS 22330 b
1972	1972	SB2497 - 55 - LRB104 12224 JDS 22330 b
1973	1973	1 subparagraph (E) to determine whether and to what
1974	1974	2 extent the limitations of subparagraph (E) would be
1975	1975	3 exceeded by additional renewable energy credit
1976	1976	4 procurement contract awards.
1977	1977	5 (aa) If the Agency determines that additional
1978	1978	6 renewable energy credit procurement contract
1979	1979	7 awards could be made without exceeding the
1980	1980	8 limitations of subparagraph (E), then the
1981	1981	9 procurements shall be authorized at a scale
1982	1982	10 determined not to exceed the limitations of
1983	1983	11 subparagraph (E) in a manner consistent with the
1984	1984	12 priorities of this Section.
1985	1985	13 (bb) If the Agency determines that additional
1986	1986	14 renewable energy credit procurement contract
1987	1987	15 awards cannot be made without exceeding the
1988	1988	16 limitations of subparagraph (E), then the Agency
1989	1989	17 shall suspend any new contract awards for the
1990	1990	18 procurement of renewable energy credits until a
1991	1991	19 new rate impact determination is made under
1992	1992	20 subparagraph (E).
1993	1993	21 (cc) Agency determinations made under this
1994	1994	22 item (iv) shall be detailed and comprehensive and,
1995	1995	23 if not made through the Agency's Long-Term
1996	1996	24 Renewable Resources Procurement Plan, shall be
1997	1997	25 filed as a compliance filing in the most recent
1998	1998	26 docketed proceeding approving the Agency's
1999	1999
2000	2000
2001	2001
2002	2002
2003	2003
2004	2004	SB2497 - 55 - LRB104 12224 JDS 22330 b
2005	2005
2006	2006
2007	2007	SB2497- 56 -LRB104 12224 JDS 22330 b SB2497 - 56 - LRB104 12224 JDS 22330 b
2008	2008	SB2497 - 56 - LRB104 12224 JDS 22330 b
2009	2009	1 Long-Term Renewable Resources Procurement Plan.
2010	2010	2 (dd) With respect to the procurement of
2011	2011	3 renewable energy credits authorized through
2012	2012	4 programs administered under subsection (b) of
2013	2013	5 Section 1-56 and subparagraphs (K) through (M) of
2014	2014	6 paragraph (1) of subsection (k) of Section 1-75 of
2015	2015	7 this Act, the award of contracts for the
2016	2016	8 procurement of renewable energy credits shall be
2017	2017	9 suspended or reduced 12 months following the
2018	2018	10 notice provided for under item (iii) of this
2019	2019	11 subparagraph (E-5) is made.
2020	2020	12 (ee) The contract shall provide that, so long
2021	2021	13 as at least one of: (i) the cost recovery
2022	2022	14 mechanisms referenced in subsection (k) of Section
2023	2023	15 16-108 and subsection (l) of Section 16-111.5 of
2024	2024	16 the Public Utilities Act remains in full force
2025	2025	17 without limitation or (ii) the utility is
2026	2026	18 otherwise authorized and or entitled to full,
2027	2027	19 prompt, and uninterrupted recovery of its costs
2028	2028	20 through any other mechanism, then such seller
2029	2029	21 shall be entitled to full, prompt, and
2030	2030	22 uninterrupted payment under the applicable
2031	2031	23 contract notwithstanding the application of this
2032	2032	24 subparagraph (E).
2033	2033	25 (F) If the limitation on the amount of renewable
2034	2034	26 energy resources procured in subparagraph (E) of this
2035	2035
2036	2036
2037	2037
2038	2038
2039	2039
2040	2040	SB2497 - 56 - LRB104 12224 JDS 22330 b
2041	2041
2042	2042
2043	2043	SB2497- 57 -LRB104 12224 JDS 22330 b SB2497 - 57 - LRB104 12224 JDS 22330 b
2044	2044	SB2497 - 57 - LRB104 12224 JDS 22330 b
2045	2045	1 paragraph (1) prevents the Agency from meeting all of the
2046	2046	2 goals in this subsection (c), the Agency's long-term plan
2047	2047	3 shall prioritize compliance with the requirements of this
2048	2048	4 subsection (c) regarding renewable energy credits in the
2049	2049	5 following order:
2050	2050	6 (i) renewable energy credits under existing
2051	2051	7 contractual obligations as of June 1, 2021;
2052	2052	8 (i-5) funding for the Illinois Solar for All
2053	2053	9 Program, as described in subparagraph (O) of this
2054	2054	10 paragraph (1);
2055	2055	11 (ii) renewable energy credits necessary to comply
2056	2056	12 with the new wind and new photovoltaic procurement
2057	2057	13 requirements described in items (i) through (iii) of
2058	2058	14 subparagraph (C) of this paragraph (1); and
2059	2059	15 (iii) renewable energy credits necessary to meet
2060	2060	16 the remaining requirements of this subsection (c).
2061	2061	17 (G) The following provisions shall apply to the
2062	2062	18 Agency's procurement of renewable energy credits under
2063	2063	19 this subsection (c):
2064	2064	20 (i) Notwithstanding whether a long-term renewable
2065	2065	21 resources procurement plan has been approved, the
2066	2066	22 Agency shall conduct an initial forward procurement
2067	2067	23 for renewable energy credits from new utility-scale
2068	2068	24 wind projects within 160 days after June 1, 2017 (the
2069	2069	25 effective date of Public Act 99-906). For the purposes
2070	2070	26 of this initial forward procurement, the Agency shall
2071	2071
2072	2072
2073	2073
2074	2074
2075	2075
2076	2076	SB2497 - 57 - LRB104 12224 JDS 22330 b
2077	2077
2078	2078
2079	2079	SB2497- 58 -LRB104 12224 JDS 22330 b SB2497 - 58 - LRB104 12224 JDS 22330 b
2080	2080	SB2497 - 58 - LRB104 12224 JDS 22330 b
2081	2081	1 solicit 15-year contracts for delivery of 1,000,000
2082	2082	2 renewable energy credits delivered annually from new
2083	2083	3 utility-scale wind projects to begin delivery on June
2084	2084	4 1, 2019, if available, but not later than June 1, 2021,
2085	2085	5 unless the project has delays in the establishment of
2086	2086	6 an operating interconnection with the applicable
2087	2087	7 transmission or distribution system as a result of the
2088	2088	8 actions or inactions of the transmission or
2089	2089	9 distribution provider, or other causes for force
2090	2090	10 majeure as outlined in the procurement contract, in
2091	2091	11 which case, not later than June 1, 2022. Payments to
2092	2092	12 suppliers of renewable energy credits shall commence
2093	2093	13 upon delivery. Renewable energy credits procured under
2094	2094	14 this initial procurement shall be included in the
2095	2095	15 Agency's long-term plan and shall apply to all
2096	2096	16 renewable energy goals in this subsection (c).
2097	2097	17 (ii) Notwithstanding whether a long-term renewable
2098	2098	18 resources procurement plan has been approved, the
2099	2099	19 Agency shall conduct an initial forward procurement
2100	2100	20 for renewable energy credits from new utility-scale
2101	2101	21 solar projects and brownfield site photovoltaic
2102	2102	22 projects within one year after June 1, 2017 (the
2103	2103	23 effective date of Public Act 99-906). For the purposes
2104	2104	24 of this initial forward procurement, the Agency shall
2105	2105	25 solicit 15-year contracts for delivery of 1,000,000
2106	2106	26 renewable energy credits delivered annually from new
2107	2107
2108	2108
2109	2109
2110	2110
2111	2111
2112	2112	SB2497 - 58 - LRB104 12224 JDS 22330 b
2113	2113
2114	2114
2115	2115	SB2497- 59 -LRB104 12224 JDS 22330 b SB2497 - 59 - LRB104 12224 JDS 22330 b
2116	2116	SB2497 - 59 - LRB104 12224 JDS 22330 b
2117	2117	1 utility-scale solar projects and brownfield site
2118	2118	2 photovoltaic projects to begin delivery on June 1,
2119	2119	3 2019, if available, but not later than June 1, 2021,
2120	2120	4 unless the project has delays in the establishment of
2121	2121	5 an operating interconnection with the applicable
2122	2122	6 transmission or distribution system as a result of the
2123	2123	7 actions or inactions of the transmission or
2124	2124	8 distribution provider, or other causes for force
2125	2125	9 majeure as outlined in the procurement contract, in
2126	2126	10 which case, not later than June 1, 2022. The Agency may
2127	2127	11 structure this initial procurement in one or more
2128	2128	12 discrete procurement events. Payments to suppliers of
2129	2129	13 renewable energy credits shall commence upon delivery.
2130	2130	14 Renewable energy credits procured under this initial
2131	2131	15 procurement shall be included in the Agency's
2132	2132	16 long-term plan and shall apply to all renewable energy
2133	2133	17 goals in this subsection (c).
2134	2134	18 (iii) Notwithstanding whether the Commission has
2135	2135	19 approved the periodic long-term renewable resources
2136	2136	20 procurement plan revision described in Section
2137	2137	21 16-111.5 of the Public Utilities Act, the Agency shall
2138	2138	22 conduct at least one subsequent forward procurement
2139	2139	23 for renewable energy credits from new utility-scale
2140	2140	24 wind projects, new utility-scale solar projects, and
2141	2141	25 new brownfield site photovoltaic projects within 240
2142	2142	26 days after the effective date of this amendatory Act
2143	2143
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148	SB2497 - 59 - LRB104 12224 JDS 22330 b
2149	2149
2150	2150
2151	2151	SB2497- 60 -LRB104 12224 JDS 22330 b SB2497 - 60 - LRB104 12224 JDS 22330 b
2152	2152	SB2497 - 60 - LRB104 12224 JDS 22330 b
2153	2153	1 of the 102nd General Assembly in quantities necessary
2154	2154	2 to meet the requirements of subparagraph (C) of this
2155	2155	3 paragraph (1) through the delivery year beginning June
2156	2156	4 1, 2021.
2157	2157	5 (iv) Notwithstanding whether the Commission has
2158	2158	6 approved the periodic long-term renewable resources
2159	2159	7 procurement plan revision described in Section
2160	2160	8 16-111.5 of the Public Utilities Act, the Agency shall
2161	2161	9 open capacity for each category in the Adjustable
2162	2162	10 Block program within 90 days after the effective date
2163	2163	11 of this amendatory Act of the 102nd General Assembly
2164	2164	12 manner:
2165	2165	13 (1) The Agency shall open the first block of
2166	2166	14 annual capacity for the category described in item
2167	2167	15 (i) of subparagraph (K) of this paragraph (1). The
2168	2168	16 first block of annual capacity for item (i) shall
2169	2169	17 be for at least 75 megawatts of total nameplate
2170	2170	18 capacity. The price of the renewable energy credit
2171	2171	19 for this block of capacity shall be 4% less than
2172	2172	20 the price of the last open block in this category.
2173	2173	21 Projects on a waitlist shall be awarded contracts
2174	2174	22 first in the order in which they appear on the
2175	2175	23 waitlist. Notwithstanding anything to the
2176	2176	24 contrary, for those renewable energy credits that
2177	2177	25 qualify and are procured under this subitem (1) of
2178	2178	26 this item (iv), the renewable energy credit
2179	2179
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184	SB2497 - 60 - LRB104 12224 JDS 22330 b
2185	2185
2186	2186
2187	2187	SB2497- 61 -LRB104 12224 JDS 22330 b SB2497 - 61 - LRB104 12224 JDS 22330 b
2188	2188	SB2497 - 61 - LRB104 12224 JDS 22330 b
2189	2189	1 delivery contract value shall be paid in full,
2190	2190	2 based on the estimated generation during the first
2191	2191	3 15 years of operation, by the contracting
2192	2192	4 utilities at the time that the facility producing
2193	2193	5 the renewable energy credits is interconnected at
2194	2194	6 the distribution system level of the utility and
2195	2195	7 verified as energized and in compliance by the
2196	2196	8 Program Administrator. The electric utility shall
2197	2197	9 receive and retire all renewable energy credits
2198	2198	10 generated by the project for the first 15 years of
2199	2199	11 operation. Renewable energy credits generated by
2200	2200	12 the project thereafter shall not be transferred
2201	2201	13 under the renewable energy credit delivery
2202	2202	14 contract with the counterparty electric utility.
2203	2203	15 (2) The Agency shall open the first block of
2204	2204	16 annual capacity for the category described in item
2205	2205	17 (ii) of subparagraph (K) of this paragraph (1).
2206	2206	18 The first block of annual capacity for item (ii)
2207	2207	19 shall be for at least 75 megawatts of total
2208	2208	20 nameplate capacity.
2209	2209	21 (A) The price of the renewable energy
2210	2210	22 credit for any project on a waitlist for this
2211	2211	23 category before the opening of this block
2212	2212	24 shall be 4% less than the price of the last
2213	2213	25 open block in this category. Projects on the
2214	2214	26 waitlist shall be awarded contracts first in
2215	2215
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220	SB2497 - 61 - LRB104 12224 JDS 22330 b
2221	2221
2222	2222
2223	2223	SB2497- 62 -LRB104 12224 JDS 22330 b SB2497 - 62 - LRB104 12224 JDS 22330 b
2224	2224	SB2497 - 62 - LRB104 12224 JDS 22330 b
2225	2225	1 the order in which they appear on the
2226	2226	2 waitlist. Any projects that are less than or
2227	2227	3 equal to 25 kilowatts in size on the waitlist
2228	2228	4 for this capacity shall be moved to the
2229	2229	5 waitlist for paragraph (1) of this item (iv).
2230	2230	6 Notwithstanding anything to the contrary,
2231	2231	7 projects that were on the waitlist prior to
2232	2232	8 opening of this block shall not be required to
2233	2233	9 be in compliance with the requirements of
2234	2234	10 subparagraph (Q) of this paragraph (1) of this
2235	2235	11 subsection (c). Notwithstanding anything to
2236	2236	12 the contrary, for those renewable energy
2237	2237	13 credits procured from projects that were on
2238	2238	14 the waitlist for this category before the
2239	2239	15 opening of this block 20% of the renewable
2240	2240	16 energy credit delivery contract value, based
2241	2241	17 on the estimated generation during the first
2242	2242	18 15 years of operation, shall be paid by the
2243	2243	19 contracting utilities at the time that the
2244	2244	20 facility producing the renewable energy
2245	2245	21 credits is interconnected at the distribution
2246	2246	22 system level of the utility and verified as
2247	2247	23 energized by the Program Administrator. The
2248	2248	24 remaining portion shall be paid ratably over
2249	2249	25 the subsequent 4-year period. The electric
2250	2250	26 utility shall receive and retire all renewable
2251	2251
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256	SB2497 - 62 - LRB104 12224 JDS 22330 b
2257	2257
2258	2258
2259	2259	SB2497- 63 -LRB104 12224 JDS 22330 b SB2497 - 63 - LRB104 12224 JDS 22330 b
2260	2260	SB2497 - 63 - LRB104 12224 JDS 22330 b
2261	2261	1 energy credits generated by the project during
2262	2262	2 the first 15 years of operation. Renewable
2263	2263	3 energy credits generated by the project
2264	2264	4 thereafter shall not be transferred under the
2265	2265	5 renewable energy credit delivery contract with
2266	2266	6 the counterparty electric utility.
2267	2267	7 (B) The price of renewable energy credits
2268	2268	8 for any project not on the waitlist for this
2269	2269	9 category before the opening of the block shall
2270	2270	10 be determined and published by the Agency.
2271	2271	11 Projects not on a waitlist as of the opening
2272	2272	12 of this block shall be subject to the
2273	2273	13 requirements of subparagraph (Q) of this
2274	2274	14 paragraph (1), as applicable. Projects not on
2275	2275	15 a waitlist as of the opening of this block
2276	2276	16 shall be subject to the contract provisions
2277	2277	17 outlined in item (iii) of subparagraph (L) of
2278	2278	18 this paragraph (1). The Agency shall strive to
2279	2279	19 publish updated prices and an updated
2280	2280	20 renewable energy credit delivery contract as
2281	2281	21 quickly as possible.
2282	2282	22 (3) For opening the first 2 blocks of annual
2283	2283	23 capacity for projects participating in item (iii)
2284	2284	24 of subparagraph (K) of paragraph (1) of subsection
2285	2285	25 (c), projects shall be selected exclusively from
2286	2286	26 those projects on the ordinal waitlists of
2287	2287
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292	SB2497 - 63 - LRB104 12224 JDS 22330 b
2293	2293
2294	2294
2295	2295	SB2497- 64 -LRB104 12224 JDS 22330 b SB2497 - 64 - LRB104 12224 JDS 22330 b
2296	2296	SB2497 - 64 - LRB104 12224 JDS 22330 b
2297	2297	1 community renewable generation projects
2298	2298	2 established by the Agency based on the status of
2299	2299	3 those ordinal waitlists as of December 31, 2020,
2300	2300	4 and only those projects previously determined to
2301	2301	5 be eligible for the Agency's April 2019 community
2302	2302	6 solar project selection process.
2303	2303	7 The first 2 blocks of annual capacity for item
2304	2304	8 (iii) shall be for 250 megawatts of total
2305	2305	9 nameplate capacity, with both blocks opening
2306	2306	10 simultaneously under the schedule outlined in the
2307	2307	11 paragraphs below. Projects shall be selected as
2308	2308	12 follows:
2309	2309	13 (A) The geographic balance of selected
2310	2310	14 projects shall follow the Group classification
2311	2311	15 found in the Agency's Revised Long-Term
2312	2312	16 Renewable Resources Procurement Plan, with 70%
2313	2313	17 of capacity allocated to projects on the Group
2314	2314	18 B waitlist and 30% of capacity allocated to
2315	2315	19 projects on the Group A waitlist.
2316	2316	20 (B) Contract awards for waitlisted
2317	2317	21 projects shall be allocated proportionate to
2318	2318	22 the total nameplate capacity amount across
2319	2319	23 both ordinal waitlists associated with that
2320	2320	24 applicant firm or its affiliates, subject to
2321	2321	25 the following conditions.
2322	2322	26 (i) Each applicant firm having a
2323	2323
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328	SB2497 - 64 - LRB104 12224 JDS 22330 b
2329	2329
2330	2330
2331	2331	SB2497- 65 -LRB104 12224 JDS 22330 b SB2497 - 65 - LRB104 12224 JDS 22330 b
2332	2332	SB2497 - 65 - LRB104 12224 JDS 22330 b
2333	2333	1 waitlisted project eligible for selection
2334	2334	2 shall receive no less than 500 kilowatts
2335	2335	3 in awarded capacity across all groups, and
2336	2336	4 no approved vendor may receive more than
2337	2337	5 20% of each Group's waitlist allocation.
2338	2338	6 (ii) Each applicant firm, upon
2339	2339	7 receiving an award of program capacity
2340	2340	8 proportionate to its waitlisted capacity,
2341	2341	9 may then determine which waitlisted
2342	2342	10 projects it chooses to be selected for a
2343	2343	11 contract award up to that capacity amount.
2344	2344	12 (iii) Assuming all other program
2345	2345	13 requirements are met, applicant firms may
2346	2346	14 adjust the nameplate capacity of applicant
2347	2347	15 projects without losing waitlist
2348	2348	16 eligibility, so long as no project is
2349	2349	17 greater than 2,000 kilowatts in size.
2350	2350	18 (iv) Assuming all other program
2351	2351	19 requirements are met, applicant firms may
2352	2352	20 adjust the expected production associated
2353	2353	21 with applicant projects, subject to
2354	2354	22 verification by the Program Administrator.
2355	2355	23 (C) After a review of affiliate
2356	2356	24 information and the current ordinal waitlists,
2357	2357	25 the Agency shall announce the nameplate
2358	2358	26 capacity award amounts associated with
2359	2359
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364	SB2497 - 65 - LRB104 12224 JDS 22330 b
2365	2365
2366	2366
2367	2367	SB2497- 66 -LRB104 12224 JDS 22330 b SB2497 - 66 - LRB104 12224 JDS 22330 b
2368	2368	SB2497 - 66 - LRB104 12224 JDS 22330 b
2369	2369	1 applicant firms no later than 90 days after
2370	2370	2 the effective date of this amendatory Act of
2371	2371	3 the 102nd General Assembly.
2372	2372	4 (D) Applicant firms shall submit their
2373	2373	5 portfolio of projects used to satisfy those
2374	2374	6 contract awards no less than 90 days after the
2375	2375	7 Agency's announcement. The total nameplate
2376	2376	8 capacity of all projects used to satisfy that
2377	2377	9 portfolio shall be no greater than the
2378	2378	10 Agency's nameplate capacity award amount
2379	2379	11 associated with that applicant firm. An
2380	2380	12 applicant firm may decline, in whole or in
2381	2381	13 part, its nameplate capacity award without
2382	2382	14 penalty, with such unmet capacity rolled over
2383	2383	15 to the next block opening for project
2384	2384	16 selection under item (iii) of subparagraph (K)
2385	2385	17 of this subsection (c). Any projects not
2386	2386	18 included in an applicant firm's portfolio may
2387	2387	19 reapply without prejudice upon the next block
2388	2388	20 reopening for project selection under item
2389	2389	21 (iii) of subparagraph (K) of this subsection
2390	2390	22 (c).
2391	2391	23 (E) The renewable energy credit delivery
2392	2392	24 contract shall be subject to the contract and
2393	2393	25 payment terms outlined in item (iv) of
2394	2394	26 subparagraph (L) of this subsection (c).
2395	2395
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400	SB2497 - 66 - LRB104 12224 JDS 22330 b
2401	2401
2402	2402
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2404	2404	SB2497 - 67 - LRB104 12224 JDS 22330 b
2405	2405	1 Contract instruments used for this
2406	2406	2 subparagraph shall contain the following
2407	2407	3 terms:
2408	2408	4 (i) Renewable energy credit prices
2409	2409	5 shall be fixed, without further adjustment
2410	2410	6 under any other provision of this Act or
2411	2411	7 for any other reason, at 10% lower than
2412	2412	8 prices applicable to the last open block
2413	2413	9 for this category, inclusive of any adders
2414	2414	10 available for achieving a minimum of 50%
2415	2415	11 of subscribers to the project's nameplate
2416	2416	12 capacity being residential or small
2417	2417	13 commercial customers with subscriptions of
2418	2418	14 below 25 kilowatts in size;
2419	2419	15 (ii) A requirement that a minimum of
2420	2420	16 50% of subscribers to the project's
2421	2421	17 nameplate capacity be residential or small
2422	2422	18 commercial customers with subscriptions of
2423	2423	19 below 25 kilowatts in size;
2424	2424	20 (iii) Permission for the ability of a
2425	2425	21 contract holder to substitute projects
2426	2426	22 with other waitlisted projects without
2427	2427	23 penalty should a project receive a
2428	2428	24 non-binding estimate of costs to construct
2429	2429	25 the interconnection facilities and any
2430	2430	26 required distribution upgrades associated
2431	2431
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436	SB2497 - 67 - LRB104 12224 JDS 22330 b
2437	2437
2438	2438
2439	2439	SB2497- 68 -LRB104 12224 JDS 22330 b SB2497 - 68 - LRB104 12224 JDS 22330 b
2440	2440	SB2497 - 68 - LRB104 12224 JDS 22330 b
2441	2441	1 with that project of greater than 30 cents
2442	2442	2 per watt AC of that project's nameplate
2443	2443	3 capacity. In developing the applicable
2444	2444	4 contract instrument, the Agency may
2445	2445	5 consider whether other circumstances
2446	2446	6 outside of the control of the applicant
2447	2447	7 firm should also warrant project
2448	2448	8 substitution rights.
2449	2449	9 The Agency shall publish a finalized
2450	2450	10 updated renewable energy credit delivery
2451	2451	11 contract developed consistent with these terms
2452	2452	12 and conditions no less than 30 days before
2453	2453	13 applicant firms must submit their portfolio of
2454	2454	14 projects pursuant to item (D).
2455	2455	15 (F) To be eligible for an award, the
2456	2456	16 applicant firm shall certify that not less
2457	2457	17 than prevailing wage, as determined pursuant
2458	2458	18 to the Illinois Prevailing Wage Act, was or
2459	2459	19 will be paid to employees who are engaged in
2460	2460	20 construction activities associated with a
2461	2461	21 selected project.
2462	2462	22 (4) The Agency shall open the first block of
2463	2463	23 annual capacity for the category described in item
2464	2464	24 (iv) of subparagraph (K) of this paragraph (1).
2465	2465	25 The first block of annual capacity for item (iv)
2466	2466	26 shall be for at least 50 megawatts of total
2467	2467
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472	SB2497 - 68 - LRB104 12224 JDS 22330 b
2473	2473
2474	2474
2475	2475	SB2497- 69 -LRB104 12224 JDS 22330 b SB2497 - 69 - LRB104 12224 JDS 22330 b
2476	2476	SB2497 - 69 - LRB104 12224 JDS 22330 b
2477	2477	1 nameplate capacity. Renewable energy credit prices
2478	2478	2 shall be fixed, without further adjustment under
2479	2479	3 any other provision of this Act or for any other
2480	2480	4 reason, at the price in the last open block in the
2481	2481	5 category described in item (ii) of subparagraph
2482	2482	6 (K) of this paragraph (1). Pricing for future
2483	2483	7 blocks of annual capacity for this category may be
2484	2484	8 adjusted in the Agency's second revision to its
2485	2485	9 Long-Term Renewable Resources Procurement Plan.
2486	2486	10 Projects in this category shall be subject to the
2487	2487	11 contract terms outlined in item (iv) of
2488	2488	12 subparagraph (L) of this paragraph (1).
2489	2489	13 (5) The Agency shall open the equivalent of 2
2490	2490	14 years of annual capacity for the category
2491	2491	15 described in item (v) of subparagraph (K) of this
2492	2492	16 paragraph (1). The first block of annual capacity
2493	2493	17 for item (v) shall be for at least 10 megawatts of
2494	2494	18 total nameplate capacity. Notwithstanding the
2495	2495	19 provisions of item (v) of subparagraph (K) of this
2496	2496	20 paragraph (1), for the purpose of this initial
2497	2497	21 block, the agency shall accept new project
2498	2498	22 applications intended to increase the diversity of
2499	2499	23 areas hosting community solar projects, the
2500	2500	24 business models of projects, and the size of
2501	2501	25 projects, as described by the Agency in its
2502	2502	26 long-term renewable resources procurement plan
2503	2503
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508	SB2497 - 69 - LRB104 12224 JDS 22330 b
2509	2509
2510	2510
2511	2511	SB2497- 70 -LRB104 12224 JDS 22330 b SB2497 - 70 - LRB104 12224 JDS 22330 b
2512	2512	SB2497 - 70 - LRB104 12224 JDS 22330 b
2513	2513	1 that is approved as of the effective date of this
2514	2514	2 amendatory Act of the 102nd General Assembly.
2515	2515	3 Projects in this category shall be subject to the
2516	2516	4 contract terms outlined in item (iii) of
2517	2517	5 subsection (L) of this paragraph (1).
2518	2518	6 (6) The Agency shall open the first blocks of
2519	2519	7 annual capacity for the category described in item
2520	2520	8 (vi) of subparagraph (K) of this paragraph (1),
2521	2521	9 with allocations of capacity within the block
2522	2522	10 generally matching the historical share of block
2523	2523	11 capacity allocated between the category described
2524	2524	12 in items (i) and (ii) of subparagraph (K) of this
2525	2525	13 paragraph (1). The first two blocks of annual
2526	2526	14 capacity for item (vi) shall be for at least 75
2527	2527	15 megawatts of total nameplate capacity. The price
2528	2528	16 of renewable energy credits for the blocks of
2529	2529	17 capacity shall be 4% less than the price of the
2530	2530	18 last open blocks in the categories described in
2531	2531	19 items (i) and (ii) of subparagraph (K) of this
2532	2532	20 paragraph (1). Pricing for future blocks of annual
2533	2533	21 capacity for this category may be adjusted in the
2534	2534	22 Agency's second revision to its Long-Term
2535	2535	23 Renewable Resources Procurement Plan. Projects in
2536	2536	24 this category shall be subject to the applicable
2537	2537	25 contract terms outlined in items (ii) and (iii) of
2538	2538	26 subparagraph (L) of this paragraph (1).
2539	2539
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544	SB2497 - 70 - LRB104 12224 JDS 22330 b
2545	2545
2546	2546
2547	2547	SB2497- 71 -LRB104 12224 JDS 22330 b SB2497 - 71 - LRB104 12224 JDS 22330 b
2548	2548	SB2497 - 71 - LRB104 12224 JDS 22330 b
2549	2549	1 (v) Upon the effective date of this amendatory Act
2550	2550	2 of the 102nd General Assembly, for all competitive
2551	2551	3 procurements and any procurements of renewable energy
2552	2552	4 credit from new utility-scale wind and new
2553	2553	5 utility-scale photovoltaic projects, the Agency shall
2554	2554	6 procure indexed renewable energy credits and direct
2555	2555	7 respondents to offer a strike price.
2556	2556	8 (1) The purchase price of the indexed
2557	2557	9 renewable energy credit payment shall be
2558	2558	10 calculated for each settlement period. That
2559	2559	11 payment, for any settlement period, shall be equal
2560	2560	12 to the difference resulting from subtracting the
2561	2561	13 strike price from the index price for that
2562	2562	14 settlement period. If this difference results in a
2563	2563	15 negative number, the indexed REC counterparty
2564	2564	16 shall owe the seller the absolute value multiplied
2565	2565	17 by the quantity of energy produced in the relevant
2566	2566	18 settlement period. If this difference results in a
2567	2567	19 positive number, the seller shall owe the indexed
2568	2568	20 REC counterparty this amount multiplied by the
2569	2569	21 quantity of energy produced in the relevant
2570	2570	22 settlement period.
2571	2571	23 (2) Parties shall cash settle every month,
2572	2572	24 summing up all settlements (both positive and
2573	2573	25 negative, if applicable) for the prior month.
2574	2574	26 (3) To ensure funding in the annual budget
2575	2575
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580	SB2497 - 71 - LRB104 12224 JDS 22330 b
2581	2581
2582	2582
2583	2583	SB2497- 72 -LRB104 12224 JDS 22330 b SB2497 - 72 - LRB104 12224 JDS 22330 b
2584	2584	SB2497 - 72 - LRB104 12224 JDS 22330 b
2585	2585	1 established under subparagraph (E) for indexed
2586	2586	2 renewable energy credit procurements for each year
2587	2587	3 of the term of such contracts, which must have a
2588	2588	4 minimum tenure of 20 calendar years, the
2589	2589	5 procurement administrator, Agency, Commission
2590	2590	6 staff, and procurement monitor shall quantify the
2591	2591	7 annual cost of the contract by utilizing an
2592	2592	8 industry-standard, third-party forward price curve
2593	2593	9 for energy at the appropriate hub or load zone,
2594	2594	10 including the estimated magnitude and timing of
2595	2595	11 the price effects related to federal carbon
2596	2596	12 controls. Each forward price curve shall contain a
2597	2597	13 specific value of the forecasted market price of
2598	2598	14 electricity for each annual delivery year of the
2599	2599	15 contract. For procurement planning purposes, the
2600	2600	16 impact on the annual budget for the cost of
2601	2601	17 indexed renewable energy credits for each delivery
2602	2602	18 year shall be determined as the expected annual
2603	2603	19 contract expenditure for that year, equaling the
2604	2604	20 difference between (i) the sum across all relevant
2605	2605	21 contracts of the applicable strike price
2606	2606	22 multiplied by contract quantity and (ii) the sum
2607	2607	23 across all relevant contracts of the forward price
2608	2608	24 curve for the applicable load zone for that year
2609	2609	25 multiplied by contract quantity. The contracting
2610	2610	26 utility shall not assume an obligation in excess
2611	2611
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616	SB2497 - 72 - LRB104 12224 JDS 22330 b
2617	2617
2618	2618
2619	2619	SB2497- 73 -LRB104 12224 JDS 22330 b SB2497 - 73 - LRB104 12224 JDS 22330 b
2620	2620	SB2497 - 73 - LRB104 12224 JDS 22330 b
2621	2621	1 of the estimated annual cost of the contracts for
2622	2622	2 indexed renewable energy credits. Forward curves
2623	2623	3 shall be revised on an annual basis as updated
2624	2624	4 forward price curves are released and filed with
2625	2625	5 the Commission in the proceeding approving the
2626	2626	6 Agency's most recent long-term renewable resources
2627	2627	7 procurement plan. If the expected contract spend
2628	2628	8 is higher or lower than the total quantity of
2629	2629	9 contracts multiplied by the forward price curve
2630	2630	10 value for that year, the forward price curve shall
2631	2631	11 be updated by the procurement administrator, in
2632	2632	12 consultation with the Agency, Commission staff,
2633	2633	13 and procurement monitors, using then-currently
2634	2634	14 available price forecast data and additional
2635	2635	15 budget dollars shall be obligated or reobligated
2636	2636	16 as appropriate.
2637	2637	17 (4) To ensure that indexed renewable energy
2638	2638	18 credit prices remain predictable and affordable,
2639	2639	19 the Agency may consider the institution of a price
2640	2640	20 collar on REC prices paid under indexed renewable
2641	2641	21 energy credit procurements establishing floor and
2642	2642	22 ceiling REC prices applicable to indexed REC
2643	2643	23 contract prices. Any price collars applicable to
2644	2644	24 indexed REC procurements shall be proposed by the
2645	2645	25 Agency through its long-term renewable resources
2646	2646	26 procurement plan.
2647	2647
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652	SB2497 - 73 - LRB104 12224 JDS 22330 b
2653	2653
2654	2654
2655	2655	SB2497- 74 -LRB104 12224 JDS 22330 b SB2497 - 74 - LRB104 12224 JDS 22330 b
2656	2656	SB2497 - 74 - LRB104 12224 JDS 22330 b
2657	2657	1 (vi) All procurements under this subparagraph (G),
2658	2658	2 including the procurement of renewable energy credits
2659	2659	3 from hydropower facilities, shall comply with the
2660	2660	4 geographic requirements in subparagraph (I) of this
2661	2661	5 paragraph (1) and shall follow the procurement
2662	2662	6 processes and procedures described in this Section and
2663	2663	7 Section 16-111.5 of the Public Utilities Act to the
2664	2664	8 extent practicable, and these processes and procedures
2665	2665	9 may be expedited to accommodate the schedule
2666	2666	10 established by this subparagraph (G). To ensure the
2667	2667	11 successful development of new utility-scale solar
2668	2668	12 projects and new utility-scale wind projects for
2669	2669	13 procurements under items (i), (ii), (iii), and (v) of
2670	2670	14 this subparagraph (G), a winning bidder or the current
2671	2671	15 seller under contract countersigned by an electric
2672	2672	16 utility counterparty may petition the Commission to
2673	2673	17 revise the terms in the contract. Prior to such
2674	2674	18 petition, upon request by the winning bidder or
2675	2675	19 seller, the Agency shall negotiate directly with the
2676	2676	20 winning bidder or seller. If following the direct
2677	2677	21 negotiations, the Agency and the winning bidder reach
2678	2678	22 an agreement on amended terms or strike price and the
2679	2679	23 Agency finds that the amended terms or strike price
2680	2680	24 reflect a change in circumstances since the date of
2681	2681	25 the bid based on circumstances unforeseeable at the
2682	2682	26 time of the bid, upon petition by the winning bidder or
2683	2683
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688	SB2497 - 74 - LRB104 12224 JDS 22330 b
2689	2689
2690	2690
2691	2691	SB2497- 75 -LRB104 12224 JDS 22330 b SB2497 - 75 - LRB104 12224 JDS 22330 b
2692	2692	SB2497 - 75 - LRB104 12224 JDS 22330 b
2693	2693	1 current seller, the Commission shall issue an order
2694	2694	2 directing the utility counterparty to execute a form
2695	2695	3 amendment drafted by the Agency with the revised terms
2696	2696	4 or the new strike price. The Agency shall provide the
2697	2697	5 amendment to the utility within 15 business days after
2698	2698	6 the Commission's order and the utility buyer shall
2699	2699	7 execute the amendment not more than 7 calendar days
2700	2700	8 after delivery by the Agency. The Agency shall develop
2701	2701	9 the form amendment following comment by interested
2702	2702	10 parties.
2703	2703	11 (vii) On and after the effective date of this
2704	2704	12 amendatory Act of the 103rd General Assembly, for all
2705	2705	13 procurements of renewable energy credits from
2706	2706	14 hydropower facilities, the Agency shall establish
2707	2707	15 contract terms designed to optimize existing
2708	2708	16 hydropower facilities through modernization or
2709	2709	17 retooling and establish new hydropower facilities at
2710	2710	18 existing dams. Procurements made under this item (vii)
2711	2711	19 shall prioritize projects located in designated
2712	2712	20 environmental justice communities, as defined in
2713	2713	21 subsection (b) of Section 1-56 of this Act, or in
2714	2714	22 projects located in units of local government with
2715	2715	23 median incomes that do not exceed 82% of the median
2716	2716	24 income of the State.
2717	2717	25 (H) The procurement of renewable energy resources for
2718	2718	26 a given delivery year shall be reduced as described in
2719	2719
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724	SB2497 - 75 - LRB104 12224 JDS 22330 b
2725	2725
2726	2726
2727	2727	SB2497- 76 -LRB104 12224 JDS 22330 b SB2497 - 76 - LRB104 12224 JDS 22330 b
2728	2728	SB2497 - 76 - LRB104 12224 JDS 22330 b
2729	2729	1 this subparagraph (H) if an alternative retail electric
2730	2730	2 supplier meets the requirements described in this
2731	2731	3 subparagraph (H).
2732	2732	4 (i) Within 45 days after June 1, 2017 (the
2733	2733	5 effective date of Public Act 99-906), an alternative
2734	2734	6 retail electric supplier or its successor shall submit
2735	2735	7 an informational filing to the Illinois Commerce
2736	2736	8 Commission certifying that, as of December 31, 2015,
2737	2737	9 the alternative retail electric supplier owned one or
2738	2738	10 more electric generating facilities that generates
2739	2739	11 renewable energy resources as defined in Section 1-10
2740	2740	12 of this Act, provided that such facilities are not
2741	2741	13 powered by wind or photovoltaics, and the facilities
2742	2742	14 generate one renewable energy credit for each megawatt
2743	2743	15 hour megawatthour of energy produced from the
2744	2744	16 facility.
2745	2745	17 The informational filing shall identify each
2746	2746	18 facility that was eligible to satisfy the alternative
2747	2747	19 retail electric supplier's obligations under Section
2748	2748	20 16-115D of the Public Utilities Act as described in
2749	2749	21 this item (i).
2750	2750	22 (ii) For a given delivery year, the alternative
2751	2751	23 retail electric supplier may elect to supply its
2752	2752	24 retail customers with renewable energy credits from
2753	2753	25 the facility or facilities described in item (i) of
2754	2754	26 this subparagraph (H) that continue to be owned by the
2755	2755
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760	SB2497 - 76 - LRB104 12224 JDS 22330 b
2761	2761
2762	2762
2763	2763	SB2497- 77 -LRB104 12224 JDS 22330 b SB2497 - 77 - LRB104 12224 JDS 22330 b
2764	2764	SB2497 - 77 - LRB104 12224 JDS 22330 b
2765	2765	1 alternative retail electric supplier.
2766	2766	2 (iii) The alternative retail electric supplier
2767	2767	3 shall notify the Agency and the applicable utility, no
2768	2768	4 later than February 28 of the year preceding the
2769	2769	5 applicable delivery year or 15 days after June 1, 2017
2770	2770	6 (the effective date of Public Act 99-906), whichever
2771	2771	7 is later, of its election under item (ii) of this
2772	2772	8 subparagraph (H) to supply renewable energy credits to
2773	2773	9 retail customers of the utility. Such election shall
2774	2774	10 identify the amount of renewable energy credits to be
2775	2775	11 supplied by the alternative retail electric supplier
2776	2776	12 to the utility's retail customers and the source of
2777	2777	13 the renewable energy credits identified in the
2778	2778	14 informational filing as described in item (i) of this
2779	2779	15 subparagraph (H), subject to the following
2780	2780	16 limitations:
2781	2781	17 For the delivery year beginning June 1, 2018,
2782	2782	18 the maximum amount of renewable energy credits to
2783	2783	19 be supplied by an alternative retail electric
2784	2784	20 supplier under this subparagraph (H) shall be 68%
2785	2785	21 multiplied by 25% multiplied by 14.5% multiplied
2786	2786	22 by the amount of metered electricity
2787	2787	23 (megawatt-hours) delivered by the alternative
2788	2788	24 retail electric supplier to Illinois retail
2789	2789	25 customers during the delivery year ending May 31,
2790	2790	26 2016.
2791	2791
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796	SB2497 - 77 - LRB104 12224 JDS 22330 b
2797	2797
2798	2798
2799	2799	SB2497- 78 -LRB104 12224 JDS 22330 b SB2497 - 78 - LRB104 12224 JDS 22330 b
2800	2800	SB2497 - 78 - LRB104 12224 JDS 22330 b
2801	2801	1 For delivery years beginning June 1, 2019 and
2802	2802	2 each year thereafter, the maximum amount of
2803	2803	3 renewable energy credits to be supplied by an
2804	2804	4 alternative retail electric supplier under this
2805	2805	5 subparagraph (H) shall be 68% multiplied by 50%
2806	2806	6 multiplied by 16% multiplied by the amount of
2807	2807	7 metered electricity (megawatt-hours) delivered by
2808	2808	8 the alternative retail electric supplier to
2809	2809	9 Illinois retail customers during the delivery year
2810	2810	10 ending May 31, 2016, provided that the 16% value
2811	2811	11 shall increase by 1.5% each delivery year
2812	2812	12 thereafter to 25% by the delivery year beginning
2813	2813	13 June 1, 2025, and thereafter the 25% value shall
2814	2814	14 apply to each delivery year.
2815	2815	15 For each delivery year, the total amount of
2816	2816	16 renewable energy credits supplied by all alternative
2817	2817	17 retail electric suppliers under this subparagraph (H)
2818	2818	18 shall not exceed 9% of the Illinois target renewable
2819	2819	19 energy credit quantity. The Illinois target renewable
2820	2820	20 energy credit quantity for the delivery year beginning
2821	2821	21 June 1, 2018 is 14.5% multiplied by the total amount of
2822	2822	22 metered electricity (megawatt-hours) delivered in the
2823	2823	23 delivery year immediately preceding that delivery
2824	2824	24 year, provided that the 14.5% shall increase by 1.5%
2825	2825	25 each delivery year thereafter to 25% by the delivery
2826	2826	26 year beginning June 1, 2025, and thereafter the 25%
2827	2827
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832	SB2497 - 78 - LRB104 12224 JDS 22330 b
2833	2833
2834	2834
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2836	2836	SB2497 - 79 - LRB104 12224 JDS 22330 b
2837	2837	1 value shall apply to each delivery year.
2838	2838	2 If the requirements set forth in items (i) through
2839	2839	3 (iii) of this subparagraph (H) are met, the charges
2840	2840	4 that would otherwise be applicable to the retail
2841	2841	5 customers of the alternative retail electric supplier
2842	2842	6 under paragraph (6) of this subsection (c) for the
2843	2843	7 applicable delivery year shall be reduced by the ratio
2844	2844	8 of the quantity of renewable energy credits supplied
2845	2845	9 by the alternative retail electric supplier compared
2846	2846	10 to that supplier's target renewable energy credit
2847	2847	11 quantity. The supplier's target renewable energy
2848	2848	12 credit quantity for the delivery year beginning June
2849	2849	13 1, 2018 is 14.5% multiplied by the total amount of
2850	2850	14 metered electricity (megawatt-hours) delivered by the
2851	2851	15 alternative retail supplier in that delivery year,
2852	2852	16 provided that the 14.5% shall increase by 1.5% each
2853	2853	17 delivery year thereafter to 25% by the delivery year
2854	2854	18 beginning June 1, 2025, and thereafter the 25% value
2855	2855	19 shall apply to each delivery year.
2856	2856	20 On or before April 1 of each year, the Agency shall
2857	2857	21 annually publish a report on its website that
2858	2858	22 identifies the aggregate amount of renewable energy
2859	2859	23 credits supplied by alternative retail electric
2860	2860	24 suppliers under this subparagraph (H).
2861	2861	25 (I) The Agency shall design its long-term renewable
2862	2862	26 energy procurement plan to maximize the State's interest
2863	2863
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868	SB2497 - 79 - LRB104 12224 JDS 22330 b
2869	2869
2870	2870
2871	2871	SB2497- 80 -LRB104 12224 JDS 22330 b SB2497 - 80 - LRB104 12224 JDS 22330 b
2872	2872	SB2497 - 80 - LRB104 12224 JDS 22330 b
2873	2873	1 in the health, safety, and welfare of its residents,
2874	2874	2 including but not limited to minimizing sulfur dioxide,
2875	2875	3 nitrogen oxide, particulate matter and other pollution
2876	2876	4 that adversely affects public health in this State,
2877	2877	5 increasing fuel and resource diversity in this State,
2878	2878	6 enhancing the reliability and resiliency of the
2879	2879	7 electricity distribution system in this State, meeting
2880	2880	8 goals to limit carbon dioxide emissions under federal or
2881	2881	9 State law, and contributing to a cleaner and healthier
2882	2882	10 environment for the citizens of this State. In order to
2883	2883	11 further these legislative purposes, renewable energy
2884	2884	12 credits shall be eligible to be counted toward the
2885	2885	13 renewable energy requirements of this subsection (c) if
2886	2886	14 they are generated from facilities located in this State.
2887	2887	15 The Agency may qualify renewable energy credits from
2888	2888	16 facilities located in states adjacent to Illinois or
2889	2889	17 renewable energy credits associated with the electricity
2890	2890	18 generated by a utility-scale wind energy facility or
2891	2891	19 utility-scale photovoltaic facility and transmitted by a
2892	2892	20 qualifying direct current project described in subsection
2893	2893	21 (b-5) of Section 8-406 of the Public Utilities Act to a
2894	2894	22 delivery point on the electric transmission grid located
2895	2895	23 in this State or a state adjacent to Illinois, if the
2896	2896	24 generator demonstrates and the Agency determines that the
2897	2897	25 operation of such facility or facilities will help promote
2898	2898	26 the State's interest in the health, safety, and welfare of
2899	2899
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904	SB2497 - 80 - LRB104 12224 JDS 22330 b
2905	2905
2906	2906
2907	2907	SB2497- 81 -LRB104 12224 JDS 22330 b SB2497 - 81 - LRB104 12224 JDS 22330 b
2908	2908	SB2497 - 81 - LRB104 12224 JDS 22330 b
2909	2909	1 its residents based on the public interest criteria
2910	2910	2 described above. For the purposes of this Section,
2911	2911	3 renewable resources that are delivered via a high voltage
2912	2912	4 direct current converter station located in Illinois shall
2913	2913	5 be deemed generated in Illinois at the time and location
2914	2914	6 the energy is converted to alternating current by the high
2915	2915	7 voltage direct current converter station if the high
2916	2916	8 voltage direct current transmission line: (i) after the
2917	2917	9 effective date of this amendatory Act of the 102nd General
2918	2918	10 Assembly, was constructed with a project labor agreement;
2919	2919	11 (ii) is capable of transmitting electricity at 525kv;
2920	2920	12 (iii) has an Illinois converter station located and
2921	2921	13 interconnected in the region of the PJM Interconnection,
2922	2922	14 LLC; (iv) does not operate as a public utility; and (v) if
2923	2923	15 the high voltage direct current transmission line was
2924	2924	16 energized after June 1, 2023. To ensure that the public
2925	2925	17 interest criteria are applied to the procurement and given
2926	2926	18 full effect, the Agency's long-term procurement plan shall
2927	2927	19 describe in detail how each public interest factor shall
2928	2928	20 be considered and weighted for facilities located in
2929	2929	21 states adjacent to Illinois.
2930	2930	22 (J) In order to promote the competitive development of
2931	2931	23 renewable energy resources in furtherance of the State's
2932	2932	24 interest in the health, safety, and welfare of its
2933	2933	25 residents, renewable energy credits shall not be eligible
2934	2934	26 to be counted toward the renewable energy requirements of
2935	2935
2936	2936
2937	2937
2938	2938
2939	2939
2940	2940	SB2497 - 81 - LRB104 12224 JDS 22330 b
2941	2941
2942	2942
2943	2943	SB2497- 82 -LRB104 12224 JDS 22330 b SB2497 - 82 - LRB104 12224 JDS 22330 b
2944	2944	SB2497 - 82 - LRB104 12224 JDS 22330 b
2945	2945	1 this subsection (c) if they are sourced from a generating
2946	2946	2 unit whose costs were being recovered through rates
2947	2947	3 regulated by this State or any other state or states on or
2948	2948	4 after January 1, 2017. Each contract executed to purchase
2949	2949	5 renewable energy credits under this subsection (c) shall
2950	2950	6 provide for the contract's termination if the costs of the
2951	2951	7 generating unit supplying the renewable energy credits
2952	2952	8 subsequently begin to be recovered through rates regulated
2953	2953	9 by this State or any other state or states; and each
2954	2954	10 contract shall further provide that, in that event, the
2955	2955	11 supplier of the credits must return 110% of all payments
2956	2956	12 received under the contract. Amounts returned under the
2957	2957	13 requirements of this subparagraph (J) shall be retained by
2958	2958	14 the utility and all of these amounts shall be used for the
2959	2959	15 procurement of additional renewable energy credits from
2960	2960	16 new wind or new photovoltaic resources as defined in this
2961	2961	17 subsection (c). The long-term plan shall provide that
2962	2962	18 these renewable energy credits shall be procured in the
2963	2963	19 next procurement event.
2964	2964	20 Notwithstanding the limitations of this subparagraph
2965	2965	21 (J), renewable energy credits sourced from generating
2966	2966	22 units that are constructed, purchased, owned, or leased by
2967	2967	23 an electric utility as part of an approved project,
2968	2968	24 program, or pilot under Section 1-56 of this Act shall be
2969	2969	25 eligible to be counted toward the renewable energy
2970	2970	26 requirements of this subsection (c), regardless of how the
2971	2971
2972	2972
2973	2973
2974	2974
2975	2975
2976	2976	SB2497 - 82 - LRB104 12224 JDS 22330 b
2977	2977
2978	2978
2979	2979	SB2497- 83 -LRB104 12224 JDS 22330 b SB2497 - 83 - LRB104 12224 JDS 22330 b
2980	2980	SB2497 - 83 - LRB104 12224 JDS 22330 b
2981	2981	1 costs of these units are recovered. As long as a
2982	2982	2 generating unit or an identifiable portion of a generating
2983	2983	3 unit has not had and does not have its costs recovered
2984	2984	4 through rates regulated by this State or any other state,
2985	2985	5 HVDC renewable energy credits associated with that
2986	2986	6 generating unit or identifiable portion thereof shall be
2987	2987	7 eligible to be counted toward the renewable energy
2988	2988	8 requirements of this subsection (c).
2989	2989	9 (K) The long-term renewable resources procurement plan
2990	2990	10 developed by the Agency in accordance with subparagraph
2991	2991	11 (A) of this paragraph (1) shall include an Adjustable
2992	2992	12 Block program for the procurement of renewable energy
2993	2993	13 credits from new photovoltaic projects that are
2994	2994	14 distributed renewable energy generation devices or new
2995	2995	15 photovoltaic community renewable generation projects. The
2996	2996	16 Adjustable Block program shall be generally designed to
2997	2997	17 provide for the steady, predictable, and sustainable
2998	2998	18 growth of new solar photovoltaic development in Illinois.
2999	2999	19 To this end, except as otherwise provided in subparagraph
3000	3000	20 (viii) of this paragraph (K), the Adjustable Block program
3001	3001	21 shall provide a transparent annual schedule of prices and
3002	3002	22 quantities to enable the photovoltaic market to scale up
3003	3003	23 and for renewable energy credit prices to adjust at a
3004	3004	24 predictable rate over time. The prices set by the
3005	3005	25 Adjustable Block program can be reflected as a set value
3006	3006	26 or as the product of a formula.
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011
3012	3012	SB2497 - 83 - LRB104 12224 JDS 22330 b
3013	3013
3014	3014
3015	3015	SB2497- 84 -LRB104 12224 JDS 22330 b SB2497 - 84 - LRB104 12224 JDS 22330 b
3016	3016	SB2497 - 84 - LRB104 12224 JDS 22330 b
3017	3017	1 The Adjustable Block program shall include for each
3018	3018	2 category of eligible projects for each delivery year: a
3019	3019	3 single block of nameplate capacity, a price for renewable
3020	3020	4 energy credits within that block, and the terms and
3021	3021	5 conditions for securing a spot on a waitlist once the
3022	3022	6 block is fully committed or reserved. Except as outlined
3023	3023	7 below, the waitlist of projects in a given year will carry
3024	3024	8 over to apply to the subsequent year when another block is
3025	3025	9 opened. Only projects energized on or after June 1, 2017
3026	3026	10 shall be eligible for the Adjustable Block program. For
3027	3027	11 each category for each delivery year the Agency shall
3028	3028	12 determine the amount of generation capacity in each block,
3029	3029	13 and the purchase price for each block, provided that the
3030	3030	14 purchase price provided and the total amount of generation
3031	3031	15 in all blocks for all categories shall be sufficient to
3032	3032	16 meet the goals in this subsection (c). The Agency shall
3033	3033	17 strive to issue a single block sized to provide for
3034	3034	18 stability and market growth. The Agency shall establish
3035	3035	19 program eligibility requirements that ensure that projects
3036	3036	20 that enter the program are sufficiently mature to indicate
3037	3037	21 a demonstrable path to completion. The Agency may
3038	3038	22 periodically review its prior decisions establishing the
3039	3039	23 amount of generation capacity in each block, and the
3040	3040	24 purchase price for each block, and may propose, on an
3041	3041	25 expedited basis, changes to these previously set values,
3042	3042	26 including but not limited to redistributing these amounts
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047
3048	3048	SB2497 - 84 - LRB104 12224 JDS 22330 b
3049	3049
3050	3050
3051	3051	SB2497- 85 -LRB104 12224 JDS 22330 b SB2497 - 85 - LRB104 12224 JDS 22330 b
3052	3052	SB2497 - 85 - LRB104 12224 JDS 22330 b
3053	3053	1 and the available funds as necessary and appropriate,
3054	3054	2 subject to Commission approval as part of the periodic
3055	3055	3 plan revision process described in Section 16-111.5 of the
3056	3056	4 Public Utilities Act. The Agency may define different
3057	3057	5 block sizes, purchase prices, or other distinct terms and
3058	3058	6 conditions for projects located in different utility
3059	3059	7 service territories if the Agency deems it necessary to
3060	3060	8 meet the goals in this subsection (c).
3061	3061	9 The Adjustable Block program shall include the
3062	3062	10 following categories in at least the following amounts:
3063	3063	11 (i) At least 20% from distributed renewable energy
3064	3064	12 generation devices with a nameplate capacity of no
3065	3065	13 more than 25 kilowatts.
3066	3066	14 (ii) At least 20% from distributed renewable
3067	3067	15 energy generation devices with a nameplate capacity of
3068	3068	16 more than 25 kilowatts and no more than 5,000
3069	3069	17 kilowatts. The Agency may create sub-categories within
3070	3070	18 this category to account for the differences between
3071	3071	19 projects for small commercial customers, large
3072	3072	20 commercial customers, and public or non-profit
3073	3073	21 customers.
3074	3074	22 (iii) At least 30% from photovoltaic community
3075	3075	23 renewable generation projects. Capacity for this
3076	3076	24 category for the first 2 delivery years after the
3077	3077	25 effective date of this amendatory Act of the 102nd
3078	3078	26 General Assembly shall be allocated to waitlist
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083
3084	3084	SB2497 - 85 - LRB104 12224 JDS 22330 b
3085	3085
3086	3086
3087	3087	SB2497- 86 -LRB104 12224 JDS 22330 b SB2497 - 86 - LRB104 12224 JDS 22330 b
3088	3088	SB2497 - 86 - LRB104 12224 JDS 22330 b
3089	3089	1 projects as provided in paragraph (3) of item (iv) of
3090	3090	2 subparagraph (G). Starting in the third delivery year
3091	3091	3 after the effective date of this amendatory Act of the
3092	3092	4 102nd General Assembly or earlier if the Agency
3093	3093	5 determines there is additional capacity needed for to
3094	3094	6 meet previous delivery year requirements, the
3095	3095	7 following shall apply:
3096	3096	8 (1) to advance the interests of all ratepayers
3097	3097	9 in timely development of community renewable
3098	3098	10 generation projects powered by solar photovoltaics
3099	3099	11 procured under this Act, the Agency shall select
3100	3100	12 projects on a first-come, first-serve basis; ,
3101	3101	13 however, the Agency shall, for applications on or
3102	3102	14 after the effective date of this amendatory Act of
3103	3103	15 the 104th General Assembly, may suggest additional
3104	3104	16 methods to prioritize projects according to this
3105	3105	17 item (1). Prioritization methods shall be clear
3106	3106	18 and changes to those methods shall not hinder the
3107	3107	19 steady, predictable, and sustainable growth of
3108	3108	20 projects under this subsection. The Agency shall
3109	3109	21 ensure any project characteristics incentivized by
3110	3110	22 the prioritization method are aligned with the
3111	3111	23 findings of this Act and the price of the
3112	3112	24 associated renewable energy credit adequately
3113	3113	25 compensates the additional costs that may be
3114	3114	26 imposed on a project that are submitted at the
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119
3120	3120	SB2497 - 86 - LRB104 12224 JDS 22330 b
3121	3121
3122	3122
3123	3123	SB2497- 87 -LRB104 12224 JDS 22330 b SB2497 - 87 - LRB104 12224 JDS 22330 b
3124	3124	SB2497 - 87 - LRB104 12224 JDS 22330 b
3125	3125	1 same time;
3126	3126	2 (2) projects shall have subscriptions of 25 kW
3127	3127	3 or less for at least 50% of the facility's
3128	3128	4 nameplate capacity and the Agency shall price the
3129	3129	5 renewable energy credits with that as a factor;
3130	3130	6 (3) projects shall not be colocated with one
3131	3131	7 or more other community renewable generation
3132	3132	8 projects, as defined in the Agency's first revised
3133	3133	9 long-term renewable resources procurement plan
3134	3134	10 approved by the Commission on February 18, 2020,
3135	3135	11 such that the aggregate nameplate capacity exceeds
3136	3136	12 5,000 kilowatts; and
3137	3137	13 (4) projects greater than 2 MW may not apply
3138	3138	14 until after the approval of the Agency's revised
3139	3139	15 Long-Term Renewable Resources Procurement Plan
3140	3140	16 after the effective date of this amendatory Act of
3141	3141	17 the 102nd General Assembly.
3142	3142	18 (iv) At least 15% from distributed renewable
3143	3143	19 generation devices or photovoltaic community renewable
3144	3144	20 generation projects installed on public school land.
3145	3145	21 The Agency may create subcategories within this
3146	3146	22 category to account for the differences between
3147	3147	23 project size or location. Projects located within
3148	3148	24 environmental justice communities or within
3149	3149	25 Organizational Units that fall within Tier 1 or Tier 2
3150	3150	26 shall be given priority. Each of the Agency's periodic
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155
3156	3156	SB2497 - 87 - LRB104 12224 JDS 22330 b
3157	3157
3158	3158
3159	3159	SB2497- 88 -LRB104 12224 JDS 22330 b SB2497 - 88 - LRB104 12224 JDS 22330 b
3160	3160	SB2497 - 88 - LRB104 12224 JDS 22330 b
3161	3161	1 updates to its long-term renewable resources
3162	3162	2 procurement plan to incorporate the procurement
3163	3163	3 described in this subparagraph (iv) shall also include
3164	3164	4 the proposed quantities or blocks, pricing, and
3165	3165	5 contract terms applicable to the procurement as
3166	3166	6 indicated herein. In each such update and procurement,
3167	3167	7 the Agency shall set the renewable energy credit price
3168	3168	8 and establish payment terms for the renewable energy
3169	3169	9 credits procured pursuant to this subparagraph (iv)
3170	3170	10 that make it feasible and affordable for public
3171	3171	11 schools to install photovoltaic distributed renewable
3172	3172	12 energy devices on their premises, including, but not
3173	3173	13 limited to, those public schools subject to the
3174	3174	14 prioritization provisions of this subparagraph. For
3175	3175	15 the purposes of this item (iv):
3176	3176	16 "Environmental Justice Community" shall have the
3177	3177	17 same meaning set forth in the Agency's long-term
3178	3178	18 renewable resources procurement plan;
3179	3179	19 "Organization Unit", "Tier 1" and "Tier 2" shall
3180	3180	20 have the meanings set for in Section 18-8.15 of the
3181	3181	21 School Code;
3182	3182	22 "Public schools" shall have the meaning set forth
3183	3183	23 in Section 1-3 of the School Code and includes public
3184	3184	24 institutions of higher education, as defined in the
3185	3185	25 Board of Higher Education Act.
3186	3186	26 (v) At least 5% from community-driven community
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191
3192	3192	SB2497 - 88 - LRB104 12224 JDS 22330 b
3193	3193
3194	3194
3195	3195	SB2497- 89 -LRB104 12224 JDS 22330 b SB2497 - 89 - LRB104 12224 JDS 22330 b
3196	3196	SB2497 - 89 - LRB104 12224 JDS 22330 b
3197	3197	1 solar projects intended to provide more direct and
3198	3198	2 tangible connection and benefits to the communities
3199	3199	3 which they serve or in which they operate and,
3200	3200	4 additionally, to increase the variety of community
3201	3201	5 solar locations, models, and options in Illinois. As
3202	3202	6 part of its long-term renewable resources procurement
3203	3203	7 plan, the Agency shall develop selection criteria for
3204	3204	8 projects participating in this category. Nothing in
3205	3205	9 this Section shall preclude the Agency from creating a
3206	3206	10 selection process that maximizes community ownership
3207	3207	11 and community benefits in selecting projects to
3208	3208	12 receive renewable energy credits. Selection criteria
3209	3209	13 shall include:
3210	3210	14 (1) community ownership or community
3211	3211	15 wealth-building;
3212	3212	16 (2) additional direct and indirect community
3213	3213	17 benefit, beyond project participation as a
3214	3214	18 subscriber, including, but not limited to,
3215	3215	19 economic, environmental, social, cultural, and
3216	3216	20 physical benefits;
3217	3217	21 (3) meaningful involvement in project
3218	3218	22 organization and development by community members
3219	3219	23 or nonprofit organizations or public entities
3220	3220	24 located in or serving the community;
3221	3221	25 (4) engagement in project operations and
3222	3222	26 management by nonprofit organizations, public
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227
3228	3228	SB2497 - 89 - LRB104 12224 JDS 22330 b
3229	3229
3230	3230
3231	3231	SB2497- 90 -LRB104 12224 JDS 22330 b SB2497 - 90 - LRB104 12224 JDS 22330 b
3232	3232	SB2497 - 90 - LRB104 12224 JDS 22330 b
3233	3233	1 entities, or community members; and
3234	3234	2 (5) whether a project is developed in response
3235	3235	3 to a site-specific RFP developed by community
3236	3236	4 members or a nonprofit organization or public
3237	3237	5 entity located in or serving the community.
3238	3238	6 Selection criteria may also prioritize projects
3239	3239	7 that:
3240	3240	8 (1) are developed in collaboration with or to
3241	3241	9 provide complementary opportunities for the Clean
3242	3242	10 Jobs Workforce Network Program, the Illinois
3243	3243	11 Climate Works Preapprenticeship Program, the
3244	3244	12 Returning Residents Clean Jobs Training Program,
3245	3245	13 the Clean Energy Contractor Incubator Program, or
3246	3246	14 the Clean Energy Primes Contractor Accelerator
3247	3247	15 Program;
3248	3248	16 (2) increase the diversity of locations of
3249	3249	17 community solar projects in Illinois, including by
3250	3250	18 locating in urban areas and population centers;
3251	3251	19 (3) are located in Equity Investment Eligible
3252	3252	20 Communities;
3253	3253	21 (4) are not greenfield projects;
3254	3254	22 (5) serve only local subscribers;
3255	3255	23 (6) have a nameplate capacity that does not
3256	3256	24 exceed 500 kW;
3257	3257	25 (7) are developed by an equity eligible
3258	3258	26 contractor; or
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263
3264	3264	SB2497 - 90 - LRB104 12224 JDS 22330 b
3265	3265
3266	3266
3267	3267	SB2497- 91 -LRB104 12224 JDS 22330 b SB2497 - 91 - LRB104 12224 JDS 22330 b
3268	3268	SB2497 - 91 - LRB104 12224 JDS 22330 b
3269	3269	1 (8) otherwise meaningfully advance the goals
3270	3270	2 of providing more direct and tangible connection
3271	3271	3 and benefits to the communities which they serve
3272	3272	4 or in which they operate and increasing the
3273	3273	5 variety of community solar locations, models, and
3274	3274	6 options in Illinois.
3275	3275	7 For the purposes of this item (v):
3276	3276	8 "Community" means a social unit in which people
3277	3277	9 come together regularly to effect change; a social
3278	3278	10 unit in which participants are marked by a cooperative
3279	3279	11 spirit, a common purpose, or shared interests or
3280	3280	12 characteristics; or a space understood by its
3281	3281	13 residents to be delineated through geographic
3282	3282	14 boundaries or landmarks.
3283	3283	15 "Community benefit" means a range of services and
3284	3284	16 activities that provide affirmative, economic,
3285	3285	17 environmental, social, cultural, or physical value to
3286	3286	18 a community; or a mechanism that enables economic
3287	3287	19 development, high-quality employment, and education
3288	3288	20 opportunities for local workers and residents, or
3289	3289	21 formal monitoring and oversight structures such that
3290	3290	22 community members may ensure that those services and
3291	3291	23 activities respond to local knowledge and needs.
3292	3292	24 "Community ownership" means an arrangement in
3293	3293	25 which an electric generating facility is, or over time
3294	3294	26 will be, in significant part, owned collectively by
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299
3300	3300	SB2497 - 91 - LRB104 12224 JDS 22330 b
3301	3301
3302	3302
3303	3303	SB2497- 92 -LRB104 12224 JDS 22330 b SB2497 - 92 - LRB104 12224 JDS 22330 b
3304	3304	SB2497 - 92 - LRB104 12224 JDS 22330 b
3305	3305	1 members of the community to which an electric
3306	3306	2 generating facility provides benefits; members of that
3307	3307	3 community participate in decisions regarding the
3308	3308	4 governance, operation, maintenance, and upgrades of
3309	3309	5 and to that facility; and members of that community
3310	3310	6 benefit from regular use of that facility.
3311	3311	7 Terms and guidance within these criteria that are
3312	3312	8 not defined in this item (v) shall be defined by the
3313	3313	9 Agency, with stakeholder input, during the development
3314	3314	10 of the Agency's long-term renewable resources
3315	3315	11 procurement plan. The Agency shall develop regular
3316	3316	12 opportunities for projects to submit applications for
3317	3317	13 projects under this category, and develop selection
3318	3318	14 criteria that gives preference to projects that better
3319	3319	15 meet individual criteria as well as projects that
3320	3320	16 address a higher number of criteria.
3321	3321	17 (vi) At least 10% from distributed renewable
3322	3322	18 energy generation devices, which includes distributed
3323	3323	19 renewable energy devices with a nameplate capacity
3324	3324	20 under 5,000 kilowatts or photovoltaic community
3325	3325	21 renewable generation projects, from applicants that
3326	3326	22 are both approved vendors and equity eligible
3327	3327	23 contractors. The Agency may create subcategories
3328	3328	24 within this category to account for the differences
3329	3329	25 between project size and type. The Agency shall
3330	3330	26 propose to increase the percentage in this item (vi)
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335
3336	3336	SB2497 - 92 - LRB104 12224 JDS 22330 b
3337	3337
3338	3338
3339	3339	SB2497- 93 -LRB104 12224 JDS 22330 b SB2497 - 93 - LRB104 12224 JDS 22330 b
3340	3340	SB2497 - 93 - LRB104 12224 JDS 22330 b
3341	3341	1 over time to 40% based on factors, including, but not
3342	3342	2 limited to, the number of equity eligible contractors
3343	3343	3 and capacity used in this item (vi) in previous
3344	3344	4 delivery years.
3345	3345	5 The Agency shall propose a payment structure for
3346	3346	6 contracts executed pursuant to this paragraph under
3347	3347	7 which, upon a demonstration of qualification or need,
3348	3348	8 applicant firms are advanced capital disbursed after
3349	3349	9 contract execution but before the contracted project's
3350	3350	10 energization. The amount or percentage of capital
3351	3351	11 advanced prior to project energization shall be
3352	3352	12 sufficient to both cover any increase in development
3353	3353	13 costs resulting from prevailing wage requirements or
3354	3354	14 project-labor agreements, and designed to overcome
3355	3355	15 barriers in access to capital faced by equity eligible
3356	3356	16 contractors. The amount or percentage of advanced
3357	3357	17 capital may vary by subcategory within this category
3358	3358	18 and by an applicant's demonstration of need, with such
3359	3359	19 levels to be established through the Long-Term
3360	3360	20 Renewable Resources Procurement Plan authorized under
3361	3361	21 subparagraph (A) of paragraph (1) of subsection (c) of
3362	3362	22 this Section.
3363	3363	23 Contracts developed featuring capital advanced
3364	3364	24 prior to a project's energization shall feature
3365	3365	25 provisions to ensure both the successful development
3366	3366	26 of applicant projects and the delivery of the
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371
3372	3372	SB2497 - 93 - LRB104 12224 JDS 22330 b
3373	3373
3374	3374
3375	3375	SB2497- 94 -LRB104 12224 JDS 22330 b SB2497 - 94 - LRB104 12224 JDS 22330 b
3376	3376	SB2497 - 94 - LRB104 12224 JDS 22330 b
3377	3377	1 renewable energy credits for the full term of the
3378	3378	2 contract, including ongoing collateral requirements
3379	3379	3 and other provisions deemed necessary by the Agency,
3380	3380	4 and may include energization timelines longer than for
3381	3381	5 comparable project types. The percentage or amount of
3382	3382	6 capital advanced prior to project energization shall
3383	3383	7 not operate to increase the overall contract value,
3384	3384	8 however contracts executed under this subparagraph may
3385	3385	9 feature renewable energy credit prices higher than
3386	3386	10 those offered to similar projects participating in
3387	3387	11 other categories. Capital advanced prior to
3388	3388	12 energization shall serve to reduce the ratable
3389	3389	13 payments made after energization under items (ii) and
3390	3390	14 (iii) of subparagraph (L) or payments made for each
3391	3391	15 renewable energy credit delivery under item (iv) of
3392	3392	16 subparagraph (L).
3393	3393	17 (vii) The remaining capacity shall be allocated by
3394	3394	18 the Agency in order to respond to market demand. The
3395	3395	19 Agency shall allocate any discretionary capacity prior
3396	3396	20 to the beginning of each delivery year.
3397	3397	21 (viii) Notwithstanding the preceding, not more than 90
3398	3398	22 days after the effective date of this amendatory Act of
3399	3399	23 the 104th General Assembly, the Agency shall petition the
3400	3400	24 Commission to modify its Long-Term Renewable Resources
3401	3401	25 Procurement Plan as follows:
3402	3402	26 (1) the petition shall include an estimate of
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407
3408	3408	SB2497 - 94 - LRB104 12224 JDS 22330 b
3409	3409
3410	3410
3411	3411	SB2497- 95 -LRB104 12224 JDS 22330 b SB2497 - 95 - LRB104 12224 JDS 22330 b
3412	3412	SB2497 - 95 - LRB104 12224 JDS 22330 b
3413	3413	1 the size of blocks authorized under subparagraph
3414	3414	2 (i) of this paragraph (K) through the delivery
3415	3415	3 year beginning in 2030;
3416	3416	4 (2) the petition shall propose blocks for each
3417	3417	5 delivery year through the delivery year beginning
3418	3418	6 in 2030 and a floating block. The floating block
3419	3419	7 shall be equal to 35% of the total capacity the
3420	3420	8 blocks identified in the preceding sentence. To
3421	3421	9 the extent that capacity allocated to systems
3422	3422	10 described in subparagraph (i) of this paragraph is
3423	3423	11 exhausted before the end of the delivery year, the
3424	3424	12 Agency shall open the floating block or a portion
3425	3425	13 thereof in the discretion of the Agency until at
3426	3426	14 latest the commencement of the next delivery year.
3427	3427	15 The Agency may propose a price for the floating
3428	3428	16 block that is different from the annual block for
3429	3429	17 a given delivery year; and
3430	3430	18 (3) the petition shall propose a methodology
3431	3431	19 for reallocated capacity under the terms of the
3432	3432	20 Agency's Long-Term Renewable Resources Procurement
3433	3433	21 Plan. The Commission shall approve the Agency's
3434	3434	22 petition within 120 days after receiving the
3435	3435	23 petition, with any modifications that the
3436	3436	24 Commission finds are necessary to deploy
3437	3437	25 distributed renewable energy generation devices to
3438	3438	26 meet customer demand and enable the photovoltaic
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443
3444	3444	SB2497 - 95 - LRB104 12224 JDS 22330 b
3445	3445
3446	3446
3447	3447	SB2497- 96 -LRB104 12224 JDS 22330 b SB2497 - 96 - LRB104 12224 JDS 22330 b
3448	3448	SB2497 - 96 - LRB104 12224 JDS 22330 b
3449	3449	1 market to scale up and for renewable energy credit
3450	3450	2 prices to adjust at a predictable rate over time.
3451	3451	3 To the extent there is uncontracted capacity from any
3452	3452	4 block in any of categories (i) through (vi) at the end of a
3453	3453	5 delivery year, the Agency shall redistribute that capacity
3454	3454	6 to one or more other categories giving priority to
3455	3455	7 categories with projects on a waitlist. The redistributed
3456	3456	8 capacity shall be added to the annual capacity in the
3457	3457	9 subsequent delivery year, and the price for renewable
3458	3458	10 energy credits shall be the price for the new delivery
3459	3459	11 year. Redistributed capacity shall not be considered
3460	3460	12 redistributed when determining whether the goals in this
3461	3461	13 subsection (K) have been met.
3462	3462	14 Notwithstanding anything to the contrary, as the
3463	3463	15 Agency increases the capacity in item (vi) to 40% over
3464	3464	16 time, the Agency may reduce the capacity of items (i)
3465	3465	17 through (v) proportionate to the capacity of the
3466	3466	18 categories of projects in item (vi), to achieve a balance
3467	3467	19 of project types.
3468	3468	20 The Adjustable Block program shall be designed to
3469	3469	21 ensure that renewable energy credits are procured from
3470	3470	22 projects in diverse locations and are not concentrated in
3471	3471	23 a few regional areas.
3472	3472	24 (L) Notwithstanding provisions for advancing capital
3473	3473	25 prior to project energization found in item (vi) of
3474	3474	26 subparagraph (K), the procurement of photovoltaic
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479
3480	3480	SB2497 - 96 - LRB104 12224 JDS 22330 b
3481	3481
3482	3482
3483	3483	SB2497- 97 -LRB104 12224 JDS 22330 b SB2497 - 97 - LRB104 12224 JDS 22330 b
3484	3484	SB2497 - 97 - LRB104 12224 JDS 22330 b
3485	3485	1 renewable energy credits under items (i) through (vi) of
3486	3486	2 subparagraph (K) of this paragraph (1) shall otherwise be
3487	3487	3 subject to the following contract and payment terms:
3488	3488	4 (i) (Blank).
3489	3489	5 (i-3) Upon delivery of evidence of an increase of
3490	3490	6 over 100% of non-binding cost estimates for
3491	3491	7 interconnection from a study or interconnection
3492	3492	8 agreement issued prior to application of a system to
3493	3493	9 the program described in subparagraph (K) of this
3494	3494	10 paragraph (1) to a study or interconnection agreement
3495	3495	11 issued after such application, the approved vendor
3496	3496	12 submitting such application shall be entitled to
3497	3497	13 return of 100% of any performance assurance posted for
3498	3498	14 such system under a contract described in this
3499	3499	15 subparagraph (L).
3500	3500	16 (i-5) The Agency or its program administrator
3501	3501	17 shall complete the review of the materials as the
3502	3502	18 Agency may require to be submitted to trigger the
3503	3503	19 initial payment for a participating system under the
3504	3504	20 renewable energy credit contract no later than 6 weeks
3505	3505	21 after the completed submission.
3506	3506	22 (ii) For those renewable energy credits that
3507	3507	23 qualify and are procured under item (i) of
3508	3508	24 subparagraph (K) of this paragraph (1), and any
3509	3509	25 similar category projects that are procured under item
3510	3510	26 (vi) of subparagraph (K) of this paragraph (1) that
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515
3516	3516	SB2497 - 97 - LRB104 12224 JDS 22330 b
3517	3517
3518	3518
3519	3519	SB2497- 98 -LRB104 12224 JDS 22330 b SB2497 - 98 - LRB104 12224 JDS 22330 b
3520	3520	SB2497 - 98 - LRB104 12224 JDS 22330 b
3521	3521	1 qualify and are procured under item (vi), the contract
3522	3522	2 length shall be 15 years. The renewable energy credit
3523	3523	3 delivery contract value shall be paid in full, based
3524	3524	4 on the estimated generation during the first 15 years
3525	3525	5 of operation, by the contracting utilities at the time
3526	3526	6 that the facility producing the renewable energy
3527	3527	7 credits is interconnected at the distribution system
3528	3528	8 level of the utility and verified as energized and
3529	3529	9 compliant by the Program Administrator. The electric
3530	3530	10 utility shall receive and retire all renewable energy
3531	3531	11 credits generated by the project for the first 15
3532	3532	12 years of operation. Renewable energy credits generated
3533	3533	13 by the project thereafter shall not be transferred
3534	3534	14 under the renewable energy credit delivery contract
3535	3535	15 with the counterparty electric utility.
3536	3536	16 (iii) For those renewable energy credits that
3537	3537	17 qualify and are procured under item (ii) and (v) of
3538	3538	18 subparagraph (K) of this paragraph (1) and any like
3539	3539	19 projects similar category that qualify and are
3540	3540	20 procured under item (vi), the contract length shall be
3541	3541	21 15 years. 15% of the renewable energy credit delivery
3542	3542	22 contract value, based on the estimated generation
3543	3543	23 during the first 15 years of operation, shall be paid
3544	3544	24 by the contracting utilities at the time that the
3545	3545	25 facility producing the renewable energy credits is
3546	3546	26 interconnected at the distribution system level of the
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551
3552	3552	SB2497 - 98 - LRB104 12224 JDS 22330 b
3553	3553
3554	3554
3555	3555	SB2497- 99 -LRB104 12224 JDS 22330 b SB2497 - 99 - LRB104 12224 JDS 22330 b
3556	3556	SB2497 - 99 - LRB104 12224 JDS 22330 b
3557	3557	1 utility and verified as energized and compliant by the
3558	3558	2 Program Administrator. The remaining portion shall be
3559	3559	3 paid ratably over the subsequent 6-year period. The
3560	3560	4 electric utility shall receive and retire all
3561	3561	5 renewable energy credits generated by the project for
3562	3562	6 the first 15 years of operation. Renewable energy
3563	3563	7 credits generated by the project thereafter shall not
3564	3564	8 be transferred under the renewable energy credit
3565	3565	9 delivery contract with the counterparty electric
3566	3566	10 utility.
3567	3567	11 (iv) For those renewable energy credits that
3568	3568	12 qualify and are procured under items (iii) and (iv) of
3569	3569	13 subparagraph (K) of this paragraph (1), and any like
3570	3570	14 projects that qualify and are procured under item
3571	3571	15 (vi), the renewable energy credit delivery contract
3572	3572	16 length shall be 20 years and shall be paid over the
3573	3573	17 delivery term, not to exceed during each delivery year
3574	3574	18 the contract price multiplied by the estimated annual
3575	3575	19 renewable energy credit generation amount. If
3576	3576	20 generation of renewable energy credits during a
3577	3577	21 delivery year exceeds the estimated annual generation
3578	3578	22 amount, the excess renewable energy credits shall be
3579	3579	23 carried forward to future delivery years and shall not
3580	3580	24 expire during the delivery term. If generation of
3581	3581	25 renewable energy credits during a delivery year,
3582	3582	26 including carried forward excess renewable energy
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587
3588	3588	SB2497 - 99 - LRB104 12224 JDS 22330 b
3589	3589
3590	3590
3591	3591	SB2497- 100 -LRB104 12224 JDS 22330 b SB2497 - 100 - LRB104 12224 JDS 22330 b
3592	3592	SB2497 - 100 - LRB104 12224 JDS 22330 b
3593	3593	1 credits, if any, is less than the estimated annual
3594	3594	2 generation amount, payments during such delivery year
3595	3595	3 will not exceed the quantity generated plus the
3596	3596	4 quantity carried forward multiplied by the contract
3597	3597	5 price. The electric utility shall receive all
3598	3598	6 renewable energy credits generated by the project
3599	3599	7 during the first 20 years of operation and retire all
3600	3600	8 renewable energy credits paid for under this item (iv)
3601	3601	9 and return at the end of the delivery term all
3602	3602	10 renewable energy credits that were not paid for.
3603	3603	11 Renewable energy credits generated by the project
3604	3604	12 thereafter shall not be transferred under the
3605	3605	13 renewable energy credit delivery contract with the
3606	3606	14 counterparty electric utility. Notwithstanding the
3607	3607	15 preceding, for those projects participating under item
3608	3608	16 (iii) of subparagraph (K), the contract price for a
3609	3609	17 delivery year shall be based on subscription levels as
3610	3610	18 measured on the higher of the first business day of the
3611	3611	19 delivery year or the first business day 6 months after
3612	3612	20 the first business day of the delivery year.
3613	3613	21 Subscription of 90% of nameplate capacity or greater
3614	3614	22 shall be deemed to be fully subscribed for the
3615	3615	23 purposes of this item (iv). For projects receiving a
3616	3616	24 20-year delivery contract, REC prices shall be
3617	3617	25 adjusted downward for consistency with the incentive
3618	3618	26 levels previously determined to be necessary to
3619	3619
3620	3620
3621	3621
3622	3622
3623	3623
3624	3624	SB2497 - 100 - LRB104 12224 JDS 22330 b
3625	3625
3626	3626
3627	3627	SB2497- 101 -LRB104 12224 JDS 22330 b SB2497 - 101 - LRB104 12224 JDS 22330 b
3628	3628	SB2497 - 101 - LRB104 12224 JDS 22330 b
3629	3629	1 support projects under 15-year delivery contracts,
3630	3630	2 taking into consideration any additional new
3631	3631	3 requirements placed on the projects, including, but
3632	3632	4 not limited to, labor standards.
3633	3633	5 (v) Each contract shall include provisions to
3634	3634	6 ensure the delivery of the estimated quantity of
3635	3635	7 renewable energy credits and ongoing collateral
3636	3636	8 requirements and other provisions deemed appropriate
3637	3637	9 by the Agency.
3638	3638	10 (vi) The utility shall be the counterparty to the
3639	3639	11 contracts executed under this subparagraph (L) that
3640	3640	12 are approved by the Commission under the process
3641	3641	13 described in Section 16-111.5 of the Public Utilities
3642	3642	14 Act. No contract shall be executed for an amount that
3643	3643	15 is less than one renewable energy credit per year.
3644	3644	16 (vii) If, at any time, approved applications for
3645	3645	17 the Adjustable Block program exceed funds collected by
3646	3646	18 the electric utility or would cause the Agency to
3647	3647	19 exceed the limitation described in subparagraph (E) of
3648	3648	20 this paragraph (1) on the amount of renewable energy
3649	3649	21 resources that may be procured, then the Agency may
3650	3650	22 consider future uncommitted funds to be reserved for
3651	3651	23 these contracts on a first-come, first-served basis.
3652	3652	24 (viii) Nothing in this Section shall require the
3653	3653	25 utility to advance any payment or pay any amounts that
3654	3654	26 exceed the actual amount of revenues anticipated to be
3655	3655
3656	3656
3657	3657
3658	3658
3659	3659
3660	3660	SB2497 - 101 - LRB104 12224 JDS 22330 b
3661	3661
3662	3662
3663	3663	SB2497- 102 -LRB104 12224 JDS 22330 b SB2497 - 102 - LRB104 12224 JDS 22330 b
3664	3664	SB2497 - 102 - LRB104 12224 JDS 22330 b
3665	3665	1 collected by the utility under paragraph (6) of this
3666	3666	2 subsection (c) and subsection (k) of Section 16-108 of
3667	3667	3 the Public Utilities Act inclusive of eligible funds
3668	3668	4 collected in prior years and alternative compliance
3669	3669	5 payments for use by the utility, and contracts
3670	3670	6 executed under this Section shall expressly
3671	3671	7 incorporate this limitation.
3672	3672	8 (ix) Notwithstanding other requirements of this
3673	3673	9 subparagraph (L), no modification shall be required to
3674	3674	10 Adjustable Block program contracts if they were
3675	3675	11 already executed prior to the establishment, approval,
3676	3676	12 and implementation of new contract forms as a result
3677	3677	13 of this amendatory Act of the 102nd General Assembly.
3678	3678	14 (x) Contracts may be assignable, but only to
3679	3679	15 entities first deemed by the Agency to have met
3680	3680	16 program terms and requirements applicable to direct
3681	3681	17 program participation. In developing contracts for the
3682	3682	18 delivery of renewable energy credits, the Agency shall
3683	3683	19 be permitted to establish fees applicable to each
3684	3684	20 contract assignment.
3685	3685	21 (M) The Agency shall be authorized to retain one or
3686	3686	22 more experts or expert consulting firms to develop,
3687	3687	23 administer, implement, operate, and evaluate the
3688	3688	24 Adjustable Block program described in subparagraph (K) of
3689	3689	25 this paragraph (1), and the Agency shall retain the
3690	3690	26 consultant or consultants in the same manner, to the
3691	3691
3692	3692
3693	3693
3694	3694
3695	3695
3696	3696	SB2497 - 102 - LRB104 12224 JDS 22330 b
3697	3697
3698	3698
3699	3699	SB2497- 103 -LRB104 12224 JDS 22330 b SB2497 - 103 - LRB104 12224 JDS 22330 b
3700	3700	SB2497 - 103 - LRB104 12224 JDS 22330 b
3701	3701	1 extent practicable, as the Agency retains others to
3702	3702	2 administer provisions of this Act, including, but not
3703	3703	3 limited to, the procurement administrator. The selection
3704	3704	4 of experts and expert consulting firms and the procurement
3705	3705	5 process described in this subparagraph (M) are exempt from
3706	3706	6 the requirements of Section 20-10 of the Illinois
3707	3707	7 Procurement Code, under Section 20-10 of that Code. The
3708	3708	8 Agency shall strive to minimize administrative expenses in
3709	3709	9 the implementation of the Adjustable Block program.
3710	3710	10 The Program Administrator may charge application fees
3711	3711	11 to participating firms to cover the cost of program
3712	3712	12 administration. Any application fee amounts shall
3713	3713	13 initially be determined through the long-term renewable
3714	3714	14 resources procurement plan, and modifications to any
3715	3715	15 application fee that deviate more than 25% from the
3716	3716	16 Commission's approved value must be approved by the
3717	3717	17 Commission as a long-term plan revision under Section
3718	3718	18 16-111.5 of the Public Utilities Act. The Agency shall
3719	3719	19 consider stakeholder feedback when making adjustments to
3720	3720	20 application fees and shall notify stakeholders in advance
3721	3721	21 of any planned changes.
3722	3722	22 In addition to covering the costs of program
3723	3723	23 administration, the Agency, in conjunction with its
3724	3724	24 Program Administrator, may also use the proceeds of such
3725	3725	25 fees charged to participating firms to support public
3726	3726	26 education and ongoing regional and national coordination
3727	3727
3728	3728
3729	3729
3730	3730
3731	3731
3732	3732	SB2497 - 103 - LRB104 12224 JDS 22330 b
3733	3733
3734	3734
3735	3735	SB2497- 104 -LRB104 12224 JDS 22330 b SB2497 - 104 - LRB104 12224 JDS 22330 b
3736	3736	SB2497 - 104 - LRB104 12224 JDS 22330 b
3737	3737	1 with nonprofit organizations, public bodies, and others
3738	3738	2 engaged in the implementation of renewable energy
3739	3739	3 incentive programs or similar initiatives. This work may
3740	3740	4 include developing papers and reports, hosting regional
3741	3741	5 and national conferences, and other work deemed necessary
3742	3742	6 by the Agency to position the State of Illinois as a
3743	3743	7 national leader in renewable energy incentive program
3744	3744	8 development and administration.
3745	3745	9 The Agency and its consultant or consultants shall
3746	3746	10 monitor block activity, share program activity with
3747	3747	11 stakeholders and conduct quarterly meetings to discuss
3748	3748	12 program activity and market conditions. If necessary, the
3749	3749	13 Agency may make prospective administrative adjustments to
3750	3750	14 the Adjustable Block program design, such as making
3751	3751	15 adjustments to purchase prices as necessary to achieve the
3752	3752	16 goals of this subsection (c). Program modifications to any
3753	3753	17 block price that do not deviate from the Commission's
3754	3754	18 approved value by more than 10% shall take effect
3755	3755	19 immediately and are not subject to Commission review and
3756	3756	20 approval. Program modifications to any block price that
3757	3757	21 deviate more than 10% from the Commission's approved value
3758	3758	22 must be approved by the Commission as a long-term plan
3759	3759	23 amendment under Section 16-111.5 of the Public Utilities
3760	3760	24 Act. The Agency shall consider stakeholder feedback when
3761	3761	25 making adjustments to the Adjustable Block design and
3762	3762	26 shall notify stakeholders in advance of any planned
3763	3763
3764	3764
3765	3765
3766	3766
3767	3767
3768	3768	SB2497 - 104 - LRB104 12224 JDS 22330 b
3769	3769
3770	3770
3771	3771	SB2497- 105 -LRB104 12224 JDS 22330 b SB2497 - 105 - LRB104 12224 JDS 22330 b
3772	3772	SB2497 - 105 - LRB104 12224 JDS 22330 b
3773	3773	1 changes.
3774	3774	2 The Agency and its program administrators for both the
3775	3775	3 Adjustable Block program and the Illinois Solar for All
3776	3776	4 Program, consistent with the requirements of this
3777	3777	5 subsection (c) and subsection (b) of Section 1-56 of this
3778	3778	6 Act, shall propose the Adjustable Block program terms,
3779	3779	7 conditions, and requirements, including the prices to be
3780	3780	8 paid for renewable energy credits, where applicable, and
3781	3781	9 requirements applicable to participating entities and
3782	3782	10 project applications, through the development, review, and
3783	3783	11 approval of the Agency's long-term renewable resources
3784	3784	12 procurement plan described in this subsection (c) and
3785	3785	13 paragraph (5) of subsection (b) of Section 16-111.5 of the
3786	3786	14 Public Utilities Act. Terms, conditions, and requirements
3787	3787	15 for program participation shall include the following:
3788	3788	16 (i) The Agency shall establish a registration
3789	3789	17 process for entities seeking to qualify for
3790	3790	18 program-administered incentive funding and establish
3791	3791	19 baseline qualifications for vendor approval. The
3792	3792	20 Agency must maintain a list of approved entities on
3793	3793	21 each program's website, and may revoke a vendor's
3794	3794	22 ability to receive program-administered incentive
3795	3795	23 funding status upon a determination that the vendor
3796	3796	24 failed to comply with contract terms, the law, or
3797	3797	25 other program requirements.
3798	3798	26 (ii) The Agency shall establish program
3799	3799
3800	3800
3801	3801
3802	3802
3803	3803
3804	3804	SB2497 - 105 - LRB104 12224 JDS 22330 b
3805	3805
3806	3806
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3808	3808	SB2497 - 106 - LRB104 12224 JDS 22330 b
3809	3809	1 requirements and minimum contract terms to ensure
3810	3810	2 projects are properly installed and produce their
3811	3811	3 expected amounts of energy. Program requirements may
3812	3812	4 include on-site inspections and photo documentation of
3813	3813	5 projects under construction. The Agency may require
3814	3814	6 repairs, alterations, or additions to remedy any
3815	3815	7 material deficiencies discovered. Vendors who have a
3816	3816	8 disproportionately high number of deficient systems
3817	3817	9 may lose their eligibility to continue to receive
3818	3818	10 State-administered incentive funding through Agency
3819	3819	11 programs and procurements.
3820	3820	12 (iii) To discourage deceptive marketing or other
3821	3821	13 bad faith business practices, the Agency may require
3822	3822	14 direct program participants, including agents
3823	3823	15 operating on their behalf, to provide standardized
3824	3824	16 disclosures to a customer prior to that customer's
3825	3825	17 execution of a contract for the development of a
3826	3826	18 distributed generation system or a subscription to a
3827	3827	19 community solar project.
3828	3828	20 (iv) The Agency shall establish one or multiple
3829	3829	21 Consumer Complaints Centers to accept complaints
3830	3830	22 regarding businesses that participate in, or otherwise
3831	3831	23 benefit from, State-administered incentive funding
3832	3832	24 through Agency-administered programs. The Agency shall
3833	3833	25 maintain a public database of complaints with any
3834	3834	26 confidential or particularly sensitive information
3835	3835
3836	3836
3837	3837
3838	3838
3839	3839
3840	3840	SB2497 - 106 - LRB104 12224 JDS 22330 b
3841	3841
3842	3842
3843	3843	SB2497- 107 -LRB104 12224 JDS 22330 b SB2497 - 107 - LRB104 12224 JDS 22330 b
3844	3844	SB2497 - 107 - LRB104 12224 JDS 22330 b
3845	3845	1 redacted from public entries.
3846	3846	2 (v) Through a filing in the proceeding for the
3847	3847	3 approval of its long-term renewable energy resources
3848	3848	4 procurement plan, the Agency shall provide an annual
3849	3849	5 written report to the Illinois Commerce Commission
3850	3850	6 documenting the frequency and nature of complaints and
3851	3851	7 any enforcement actions taken in response to those
3852	3852	8 complaints.
3853	3853	9 (vi) The Agency shall schedule regular meetings
3854	3854	10 with representatives of the Office of the Attorney
3855	3855	11 General, the Illinois Commerce Commission, consumer
3856	3856	12 protection groups, and other interested stakeholders
3857	3857	13 to share relevant information about consumer
3858	3858	14 protection, project compliance, and complaints
3859	3859	15 received.
3860	3860	16 (vii) To the extent that complaints received
3861	3861	17 implicate the jurisdiction of the Office of the
3862	3862	18 Attorney General, the Illinois Commerce Commission, or
3863	3863	19 local, State, or federal law enforcement, the Agency
3864	3864	20 shall also refer complaints to those entities as
3865	3865	21 appropriate.
3866	3866	22 (N) The Agency shall establish the terms, conditions,
3867	3867	23 and program requirements for photovoltaic community
3868	3868	24 renewable generation projects with a goal to expand access
3869	3869	25 to a broader group of energy consumers, to ensure robust
3870	3870	26 participation opportunities for residential and small
3871	3871
3872	3872
3873	3873
3874	3874
3875	3875
3876	3876	SB2497 - 107 - LRB104 12224 JDS 22330 b
3877	3877
3878	3878
3879	3879	SB2497- 108 -LRB104 12224 JDS 22330 b SB2497 - 108 - LRB104 12224 JDS 22330 b
3880	3880	SB2497 - 108 - LRB104 12224 JDS 22330 b
3881	3881	1 commercial customers and those who cannot install
3882	3882	2 renewable energy on their own properties. Subject to
3883	3883	3 reasonable limitations, any plan approved by the
3884	3884	4 Commission shall allow subscriptions to community
3885	3885	5 renewable generation projects to be portable and
3886	3886	6 transferable. For purposes of this subparagraph (N),
3887	3887	7 "portable" means that subscriptions may be retained by the
3888	3888	8 subscriber even if the subscriber relocates or changes its
3889	3889	9 address within the same utility service territory; and
3890	3890	10 "transferable" means that a subscriber may assign or sell
3891	3891	11 subscriptions to another person within the same utility
3892	3892	12 service territory.
3893	3893	13 Through the development of its long-term renewable
3894	3894	14 resources procurement plan, the Agency may consider
3895	3895	15 whether community renewable generation projects utilizing
3896	3896	16 technologies other than photovoltaics should be supported
3897	3897	17 through State-administered incentive funding, and may
3898	3898	18 issue requests for information to gauge market demand.
3899	3899	19 Electric utilities shall provide a monetary credit to
3900	3900	20 a subscriber's subsequent bill for service for the
3901	3901	21 proportional output of a community renewable generation
3902	3902	22 project attributable to that subscriber as specified in
3903	3903	23 Section 16-107.5 of the Public Utilities Act.
3904	3904	24 The Agency shall purchase renewable energy credits
3905	3905	25 from subscribed shares of photovoltaic community renewable
3906	3906	26 generation projects through the Adjustable Block program
3907	3907
3908	3908
3909	3909
3910	3910
3911	3911
3912	3912	SB2497 - 108 - LRB104 12224 JDS 22330 b
3913	3913
3914	3914
3915	3915	SB2497- 109 -LRB104 12224 JDS 22330 b SB2497 - 109 - LRB104 12224 JDS 22330 b
3916	3916	SB2497 - 109 - LRB104 12224 JDS 22330 b
3917	3917	1 described in subparagraph (K) of this paragraph (1) or
3918	3918	2 through the Illinois Solar for All Program described in
3919	3919	3 Section 1-56 of this Act. The electric utility shall
3920	3920	4 purchase any unsubscribed energy from community renewable
3921	3921	5 generation projects that are Qualifying Facilities ("QF")
3922	3922	6 under the electric utility's tariff for purchasing the
3923	3923	7 output from QFs under Public Utilities Regulatory Policies
3924	3924	8 Act of 1978.
3925	3925	9 The owners of and any subscribers to a community
3926	3926	10 renewable generation project shall not be considered
3927	3927	11 public utilities or alternative retail electricity
3928	3928	12 suppliers under the Public Utilities Act solely as a
3929	3929	13 result of their interest in or subscription to a community
3930	3930	14 renewable generation project and shall not be required to
3931	3931	15 become an alternative retail electric supplier by
3932	3932	16 participating in a community renewable generation project
3933	3933	17 with a public utility.
3934	3934	18 (O) For the delivery year beginning June 1, 2018, the
3935	3935	19 long-term renewable resources procurement plan required by
3936	3936	20 this subsection (c) shall provide for the Agency to
3937	3937	21 procure contracts to continue offering the Illinois Solar
3938	3938	22 for All Program described in subsection (b) of Section
3939	3939	23 1-56 of this Act, and the contracts approved by the
3940	3940	24 Commission shall be executed by the utilities that are
3941	3941	25 subject to this subsection (c). The long-term renewable
3942	3942	26 resources procurement plan shall allocate up to
3943	3943
3944	3944
3945	3945
3946	3946
3947	3947
3948	3948	SB2497 - 109 - LRB104 12224 JDS 22330 b
3949	3949
3950	3950
3951	3951	SB2497- 110 -LRB104 12224 JDS 22330 b SB2497 - 110 - LRB104 12224 JDS 22330 b
3952	3952	SB2497 - 110 - LRB104 12224 JDS 22330 b
3953	3953	1 $50,000,000 per delivery year to fund the programs, and
3954	3954	2 the plan shall determine the amount of funding to be
3955	3955	3 apportioned to the programs identified in subsection (b)
3956	3956	4 of Section 1-56 of this Act; provided that for the
3957	3957	5 delivery years beginning June 1, 2021, June 1, 2022, and
3958	3958	6 June 1, 2023, the long-term renewable resources
3959	3959	7 procurement plan may average the annual budgets over a
3960	3960	8 3-year period to account for program ramp-up. For the
3961	3961	9 delivery years beginning June 1, 2021, June 1, 2024, June
3962	3962	10 1, 2027, and June 1, 2030 and additional $10,000,000 shall
3963	3963	11 be provided to the Department of Commerce and Economic
3964	3964	12 Opportunity to implement the workforce development
3965	3965	13 programs and reporting as outlined in Section 16-108.12 of
3966	3966	14 the Public Utilities Act. In making the determinations
3967	3967	15 required under this subparagraph (O), the Commission shall
3968	3968	16 consider the experience and performance under the programs
3969	3969	17 and any evaluation reports. The Commission shall also
3970	3970	18 provide for an independent evaluation of those programs on
3971	3971	19 a periodic basis that are funded under this subparagraph
3972	3972	20 (O).
3973	3973	21 (P) All programs and procurements under this
3974	3974	22 subsection (c) shall be designed to encourage
3975	3975	23 participating projects to use a diverse and equitable
3976	3976	24 workforce and a diverse set of contractors, including
3977	3977	25 minority-owned businesses, disadvantaged businesses,
3978	3978	26 trade unions, graduates of any workforce training programs
3979	3979
3980	3980
3981	3981
3982	3982
3983	3983
3984	3984	SB2497 - 110 - LRB104 12224 JDS 22330 b
3985	3985
3986	3986
3987	3987	SB2497- 111 -LRB104 12224 JDS 22330 b SB2497 - 111 - LRB104 12224 JDS 22330 b
3988	3988	SB2497 - 111 - LRB104 12224 JDS 22330 b
3989	3989	1 administered under this Act, and small businesses.
3990	3990	2 The Agency shall develop a method to optimize
3991	3991	3 procurement of renewable energy credits from proposed
3992	3992	4 utility-scale projects that are located in communities
3993	3993	5 eligible to receive Energy Transition Community Grants
3994	3994	6 pursuant to Section 10-20 of the Energy Community
3995	3995	7 Reinvestment Act. If this requirement conflicts with other
3996	3996	8 provisions of law or the Agency determines that full
3997	3997	9 compliance with the requirements of this subparagraph (P)
3998	3998	10 would be unreasonably costly or administratively
3999	3999	11 impractical, the Agency is to propose alternative
4000	4000	12 approaches to achieve development of renewable energy
4001	4001	13 resources in communities eligible to receive Energy
4002	4002	14 Transition Community Grants pursuant to Section 10-20 of
4003	4003	15 the Energy Community Reinvestment Act or seek an exemption
4004	4004	16 from this requirement from the Commission.
4005	4005	17 (Q) Each facility listed in subitems (i) through (ix)
4006	4006	18 of item (1) of this subparagraph (Q) for which a renewable
4007	4007	19 energy credit delivery contract is signed after the
4008	4008	20 effective date of this amendatory Act of the 102nd General
4009	4009	21 Assembly is subject to the following requirements through
4010	4010	22 the Agency's long-term renewable resources procurement
4011	4011	23 plan:
4012	4012	24 (1) Each facility shall be subject to the
4013	4013	25 prevailing wage requirements included in the
4014	4014	26 Prevailing Wage Act. The Agency shall require
4015	4015
4016	4016
4017	4017
4018	4018
4019	4019
4020	4020	SB2497 - 111 - LRB104 12224 JDS 22330 b
4021	4021
4022	4022
4023	4023	SB2497- 112 -LRB104 12224 JDS 22330 b SB2497 - 112 - LRB104 12224 JDS 22330 b
4024	4024	SB2497 - 112 - LRB104 12224 JDS 22330 b
4025	4025	1 verification that all construction performed on the
4026	4026	2 facility by the renewable energy credit delivery
4027	4027	3 contract holder, its contractors, or its
4028	4028	4 subcontractors relating to construction of the
4029	4029	5 facility is performed by construction employees
4030	4030	6 receiving an amount for that work equal to or greater
4031	4031	7 than the general prevailing rate, as that term is
4032	4032	8 defined in Section 3 of the Prevailing Wage Act. For
4033	4033	9 purposes of this item (1), "house of worship" means
4034	4034	10 property that is both (1) used exclusively by a
4035	4035	11 religious society or body of persons as a place for
4036	4036	12 religious exercise or religious worship and (2)
4037	4037	13 recognized as exempt from taxation pursuant to Section
4038	4038	14 15-40 of the Property Tax Code. This item (1) shall
4039	4039	15 apply to any the following:
4040	4040	16 (i) all new utility-scale wind projects;
4041	4041	17 (ii) all new utility-scale photovoltaic
4042	4042	18 projects;
4043	4043	19 (iii) all new brownfield photovoltaic
4044	4044	20 projects;
4045	4045	21 (iv) all new photovoltaic community renewable
4046	4046	22 energy facilities and any associated energy
4047	4047	23 storage systems that qualify for item (iii) of
4048	4048	24 subparagraph (K) of this paragraph (1);
4049	4049	25 (v) all new community driven community
4050	4050	26 photovoltaic projects and any associated energy
4051	4051
4052	4052
4053	4053
4054	4054
4055	4055
4056	4056	SB2497 - 112 - LRB104 12224 JDS 22330 b
4057	4057
4058	4058
4059	4059	SB2497- 113 -LRB104 12224 JDS 22330 b SB2497 - 113 - LRB104 12224 JDS 22330 b
4060	4060	SB2497 - 113 - LRB104 12224 JDS 22330 b
4061	4061	1 storage systems that qualify for item (v) of
4062	4062	2 subparagraph (K) of this paragraph (1);
4063	4063	3 (vi) all new photovoltaic projects on public
4064	4064	4 school land that qualify for item (iv) of
4065	4065	5 subparagraph (K) of this paragraph (1);
4066	4066	6 (vii) all new photovoltaic distributed
4067	4067	7 renewable energy generation devices and any
4068	4068	8 associated energy storage systems that (1) qualify
4069	4069	9 for item (i) of subparagraph (K) of this paragraph
4070	4070	10 (1); (2) are not projects that serve single-family
4071	4071	11 or multi-family residential buildings; and (3) are
4072	4072	12 not houses of worship where the aggregate capacity
4073	4073	13 including collocated projects would not exceed 100
4074	4074	14 kilowatts;
4075	4075	15 (viii) all new photovoltaic distributed
4076	4076	16 renewable energy generation devices and any
4077	4077	17 associated energy storage systems that (1) qualify
4078	4078	18 for item (ii) of subparagraph (K) of this
4079	4079	19 paragraph (1); (2) are not projects that serve
4080	4080	20 single-family or multi-family residential
4081	4081	21 buildings; and (3) are not houses of worship where
4082	4082	22 the aggregate capacity including collocated
4083	4083	23 projects would not exceed 100 kilowatts;
4084	4084	24 (ix) all new, modernized, or retooled
4085	4085	25 hydropower facilities.
4086	4086	26 (2) Renewable energy credits procured from new
4087	4087
4088	4088
4089	4089
4090	4090
4091	4091
4092	4092	SB2497 - 113 - LRB104 12224 JDS 22330 b
4093	4093
4094	4094
4095	4095	SB2497- 114 -LRB104 12224 JDS 22330 b SB2497 - 114 - LRB104 12224 JDS 22330 b
4096	4096	SB2497 - 114 - LRB104 12224 JDS 22330 b
4097	4097	1 utility-scale wind projects, new utility-scale solar
4098	4098	2 projects, and new brownfield solar projects pursuant
4099	4099	3 to Agency procurement events occurring after the
4100	4100	4 effective date of this amendatory Act of the 102nd
4101	4101	5 General Assembly must be from facilities built by
4102	4102	6 general contractors that must enter into a project
4103	4103	7 labor agreement, as defined by this Act, prior to
4104	4104	8 construction. The project labor agreement shall be
4105	4105	9 filed with the Director in accordance with procedures
4106	4106	10 established by the Agency through its long-term
4107	4107	11 renewable resources procurement plan. Any information
4108	4108	12 submitted to the Agency in this item (2) shall be
4109	4109	13 considered commercially sensitive information. At a
4110	4110	14 minimum, the project labor agreement must provide the
4111	4111	15 names, addresses, and occupations of the owner of the
4112	4112	16 plant and the individuals representing the labor
4113	4113	17 organization employees participating in the project
4114	4114	18 labor agreement consistent with the Project Labor
4115	4115	19 Agreements Act. The agreement must also specify the
4116	4116	20 terms and conditions as defined by this Act.
4117	4117	21 (3) It is the intent of this Section to ensure that
4118	4118	22 economic development occurs across Illinois
4119	4119	23 communities, that emerging businesses may grow, and
4120	4120	24 that there is improved access to the clean energy
4121	4121	25 economy by persons who have greater economic burdens
4122	4122	26 to success. The Agency shall take into consideration
4123	4123
4124	4124
4125	4125
4126	4126
4127	4127
4128	4128	SB2497 - 114 - LRB104 12224 JDS 22330 b
4129	4129
4130	4130
4131	4131	SB2497- 115 -LRB104 12224 JDS 22330 b SB2497 - 115 - LRB104 12224 JDS 22330 b
4132	4132	SB2497 - 115 - LRB104 12224 JDS 22330 b
4133	4133	1 the unique cost of compliance of this subparagraph (Q)
4134	4134	2 that might be borne by equity eligible contractors,
4135	4135	3 shall include such costs when determining the price of
4136	4136	4 renewable energy credits in the Adjustable Block
4137	4137	5 program, and shall take such costs into consideration
4138	4138	6 in a nondiscriminatory manner when comparing bids for
4139	4139	7 competitive procurements. The Agency shall consider
4140	4140	8 costs associated with compliance whether in the
4141	4141	9 development, financing, or construction of projects.
4142	4142	10 The Agency shall periodically review the assumptions
4143	4143	11 in these costs and may adjust prices, in compliance
4144	4144	12 with subparagraph (M) of this paragraph (1).
4145	4145	13 (R) In its long-term renewable resources procurement
4146	4146	14 plan, the Agency shall establish a self-direct renewable
4147	4147	15 portfolio standard compliance program for eligible
4148	4148	16 self-direct customers that purchase renewable energy
4149	4149	17 credits from utility-scale wind and solar projects through
4150	4150	18 long-term agreements for purchase of renewable energy
4151	4151	19 credits as described in this Section. Such long-term
4152	4152	20 agreements may include the purchase of energy or other
4153	4153	21 products on a physical or financial basis and may involve
4154	4154	22 an alternative retail electric supplier as defined in
4155	4155	23 Section 16-102 of the Public Utilities Act. This program
4156	4156	24 shall take effect in the delivery year commencing June 1,
4157	4157	25 2023.
4158	4158	26 (1) For the purposes of this subparagraph:
4159	4159
4160	4160
4161	4161
4162	4162
4163	4163
4164	4164	SB2497 - 115 - LRB104 12224 JDS 22330 b
4165	4165
4166	4166
4167	4167	SB2497- 116 -LRB104 12224 JDS 22330 b SB2497 - 116 - LRB104 12224 JDS 22330 b
4168	4168	SB2497 - 116 - LRB104 12224 JDS 22330 b
4169	4169	1 "Eligible self-direct customer" means any retail
4170	4170	2 customers of an electric utility that serves 3,000,000
4171	4171	3 or more retail customers in the State and whose total
4172	4172	4 highest 30-minute demand was more than 10,000
4173	4173	5 kilowatts, or any retail customers of an electric
4174	4174	6 utility that serves less than 3,000,000 retail
4175	4175	7 customers but more than 500,000 retail customers in
4176	4176	8 the State and whose total highest 15-minute demand was
4177	4177	9 more than 10,000 kilowatts.
4178	4178	10 "Retail customer" has the meaning set forth in
4179	4179	11 Section 16-102 of the Public Utilities Act and
4180	4180	12 multiple retail customer accounts under the same
4181	4181	13 corporate parent may aggregate their account demands
4182	4182	14 to meet the 10,000 kilowatt threshold. The criteria
4183	4183	15 for determining whether this subparagraph is
4184	4184	16 applicable to a retail customer shall be based on the
4185	4185	17 12 consecutive billing periods prior to the start of
4186	4186	18 the year in which the application is filed.
4187	4187	19 (2) For renewable energy credits to count toward
4188	4188	20 the self-direct renewable portfolio standard
4189	4189	21 compliance program, they must:
4190	4190	22 (i) qualify as renewable energy credits as
4191	4191	23 defined in Section 1-10 of this Act;
4192	4192	24 (ii) be sourced from one or more renewable
4193	4193	25 energy generating facilities that comply with the
4194	4194	26 geographic requirements as set forth in
4195	4195
4196	4196
4197	4197
4198	4198
4199	4199
4200	4200	SB2497 - 116 - LRB104 12224 JDS 22330 b
4201	4201
4202	4202
4203	4203	SB2497- 117 -LRB104 12224 JDS 22330 b SB2497 - 117 - LRB104 12224 JDS 22330 b
4204	4204	SB2497 - 117 - LRB104 12224 JDS 22330 b
4205	4205	1 subparagraph (I) of paragraph (1) of subsection
4206	4206	2 (c) as interpreted through the Agency's long-term
4207	4207	3 renewable resources procurement plan, or, where
4208	4208	4 applicable, the geographic requirements that
4209	4209	5 governed utility-scale renewable energy credits at
4210	4210	6 the time the eligible self-direct customer entered
4211	4211	7 into the applicable renewable energy credit
4212	4212	8 purchase agreement;
4213	4213	9 (iii) be procured through long-term contracts
4214	4214	10 with term lengths of at least 10 years either
4215	4215	11 directly with the renewable energy generating
4216	4216	12 facility or through a bundled power purchase
4217	4217	13 agreement, a virtual power purchase agreement, an
4218	4218	14 agreement between the renewable generating
4219	4219	15 facility, an alternative retail electric supplier,
4220	4220	16 and the customer, or such other structure as is
4221	4221	17 permissible under this subparagraph (R);
4222	4222	18 (iv) be equivalent in volume to at least 40%
4223	4223	19 of the eligible self-direct customer's usage,
4224	4224	20 determined annually by the eligible self-direct
4225	4225	21 customer's usage during the previous delivery
4226	4226	22 year, measured to the nearest megawatt-hour;
4227	4227	23 (v) be retired by or on behalf of the large
4228	4228	24 energy customer;
4229	4229	25 (vi) be sourced from new utility-scale wind
4230	4230	26 projects or new utility-scale solar projects; and
4231	4231
4232	4232
4233	4233
4234	4234
4235	4235
4236	4236	SB2497 - 117 - LRB104 12224 JDS 22330 b
4237	4237
4238	4238
4239	4239	SB2497- 118 -LRB104 12224 JDS 22330 b SB2497 - 118 - LRB104 12224 JDS 22330 b
4240	4240	SB2497 - 118 - LRB104 12224 JDS 22330 b
4241	4241	1 (vii) if the contracts for renewable energy
4242	4242	2 credits are entered into after the effective date
4243	4243	3 of this amendatory Act of the 102nd General
4244	4244	4 Assembly, the new utility-scale wind projects or
4245	4245	5 new utility-scale solar projects must comply with
4246	4246	6 the requirements established in subparagraphs (P)
4247	4247	7 and (Q) of paragraph (1) of this subsection (c)
4248	4248	8 and subsection (c-10).
4249	4249	9 (3) The self-direct renewable portfolio standard
4250	4250	10 compliance program shall be designed to allow eligible
4251	4251	11 self-direct customers to procure new renewable energy
4252	4252	12 credits from new utility-scale wind projects or new
4253	4253	13 utility-scale photovoltaic projects. The Agency shall
4254	4254	14 annually determine the amount of utility-scale
4255	4255	15 renewable energy credits it will include each year
4256	4256	16 from the self-direct renewable portfolio standard
4257	4257	17 compliance program, subject to receiving qualifying
4258	4258	18 applications. In making this determination, the Agency
4259	4259	19 shall evaluate publicly available analyses and studies
4260	4260	20 of the potential market size for utility-scale
4261	4261	21 renewable energy long-term purchase agreements by
4262	4262	22 commercial and industrial energy customers and make
4263	4263	23 that report publicly available. If demand for
4264	4264	24 participation in the self-direct renewable portfolio
4265	4265	25 standard compliance program exceeds availability, the
4266	4266	26 Agency shall ensure participation is evenly split
4267	4267
4268	4268
4269	4269
4270	4270
4271	4271
4272	4272	SB2497 - 118 - LRB104 12224 JDS 22330 b
4273	4273
4274	4274
4275	4275	SB2497- 119 -LRB104 12224 JDS 22330 b SB2497 - 119 - LRB104 12224 JDS 22330 b
4276	4276	SB2497 - 119 - LRB104 12224 JDS 22330 b
4277	4277	1 between commercial and industrial users to the extent
4278	4278	2 there is sufficient demand from both customer classes.
4279	4279	3 Each renewable energy credit procured pursuant to this
4280	4280	4 subparagraph (R) by a self-direct customer shall
4281	4281	5 reduce the total volume of renewable energy credits
4282	4282	6 the Agency is otherwise required to procure from new
4283	4283	7 utility-scale projects pursuant to subparagraph (C) of
4284	4284	8 paragraph (1) of this subsection (c) on behalf of
4285	4285	9 contracting utilities where the eligible self-direct
4286	4286	10 customer is located. The self-direct customer shall
4287	4287	11 file an annual compliance report with the Agency
4288	4288	12 pursuant to terms established by the Agency through
4289	4289	13 its long-term renewable resources procurement plan to
4290	4290	14 be eligible for participation in this program.
4291	4291	15 Customers must provide the Agency with their most
4292	4292	16 recent electricity billing statements or other
4293	4293	17 information deemed necessary by the Agency to
4294	4294	18 demonstrate they are an eligible self-direct customer.
4295	4295	19 (4) The Commission shall approve a reduction in
4296	4296	20 the volumetric charges collected pursuant to Section
4297	4297	21 16-108 of the Public Utilities Act for approved
4298	4298	22 eligible self-direct customers equivalent to the
4299	4299	23 anticipated cost of renewable energy credit deliveries
4300	4300	24 under contracts for new utility-scale wind and new
4301	4301	25 utility-scale solar entered for each delivery year
4302	4302	26 after the large energy customer begins retiring
4303	4303
4304	4304
4305	4305
4306	4306
4307	4307
4308	4308	SB2497 - 119 - LRB104 12224 JDS 22330 b
4309	4309
4310	4310
4311	4311	SB2497- 120 -LRB104 12224 JDS 22330 b SB2497 - 120 - LRB104 12224 JDS 22330 b
4312	4312	SB2497 - 120 - LRB104 12224 JDS 22330 b
4313	4313	1 eligible new utility scale renewable energy credits
4314	4314	2 for self-compliance. The self-direct credit amount
4315	4315	3 shall be determined annually and is equal to the
4316	4316	4 estimated portion of the cost authorized by
4317	4317	5 subparagraph (E) of paragraph (1) of this subsection
4318	4318	6 (c) that supported the annual procurement of
4319	4319	7 utility-scale renewable energy credits in the prior
4320	4320	8 delivery year using a methodology described in the
4321	4321	9 long-term renewable resources procurement plan,
4322	4322	10 expressed on a per kilowatthour basis, and does not
4323	4323	11 include (i) costs associated with any contracts
4324	4324	12 entered into before the delivery year in which the
4325	4325	13 customer files the initial compliance report to be
4326	4326	14 eligible for participation in the self-direct program,
4327	4327	15 and (ii) costs associated with procuring renewable
4328	4328	16 energy credits through existing and future contracts
4329	4329	17 through the Adjustable Block Program, subsection (c-5)
4330	4330	18 of this Section 1-75, and the Solar for All Program.
4331	4331	19 The Agency shall assist the Commission in determining
4332	4332	20 the current and future costs. The Agency must
4333	4333	21 determine the self-direct credit amount for new and
4334	4334	22 existing eligible self-direct customers and submit
4335	4335	23 this to the Commission in an annual compliance filing.
4336	4336	24 The Commission must approve the self-direct credit
4337	4337	25 amount by June 1, 2023 and June 1 of each delivery year
4338	4338	26 thereafter.
4339	4339
4340	4340
4341	4341
4342	4342
4343	4343
4344	4344	SB2497 - 120 - LRB104 12224 JDS 22330 b
4345	4345
4346	4346
4347	4347	SB2497- 121 -LRB104 12224 JDS 22330 b SB2497 - 121 - LRB104 12224 JDS 22330 b
4348	4348	SB2497 - 121 - LRB104 12224 JDS 22330 b
4349	4349	1 (5) Customers described in this subparagraph (R)
4350	4350	2 shall apply, on a form developed by the Agency, to the
4351	4351	3 Agency to be designated as a self-direct eligible
4352	4352	4 customer. Once the Agency determines that a
4353	4353	5 self-direct customer is eligible for participation in
4354	4354	6 the program, the self-direct customer will remain
4355	4355	7 eligible until the end of the term of the contract.
4356	4356	8 Thereafter, application may be made not less than 12
4357	4357	9 months before the filing date of the long-term
4358	4358	10 renewable resources procurement plan described in this
4359	4359	11 Act. At a minimum, such application shall contain the
4360	4360	12 following:
4361	4361	13 (i) the customer's certification that, at the
4362	4362	14 time of the customer's application, the customer
4363	4363	15 qualifies to be a self-direct eligible customer,
4364	4364	16 including documents demonstrating that
4365	4365	17 qualification;
4366	4366	18 (ii) the customer's certification that the
4367	4367	19 customer has entered into or will enter into by
4368	4368	20 the beginning of the applicable procurement year,
4369	4369	21 one or more bilateral contracts for new wind
4370	4370	22 projects or new photovoltaic projects, including
4371	4371	23 supporting documentation;
4372	4372	24 (iii) certification that the contract or
4373	4373	25 contracts for new renewable energy resources are
4374	4374	26 long-term contracts with term lengths of at least
4375	4375
4376	4376
4377	4377
4378	4378
4379	4379
4380	4380	SB2497 - 121 - LRB104 12224 JDS 22330 b
4381	4381
4382	4382
4383	4383	SB2497- 122 -LRB104 12224 JDS 22330 b SB2497 - 122 - LRB104 12224 JDS 22330 b
4384	4384	SB2497 - 122 - LRB104 12224 JDS 22330 b
4385	4385	1 10 years, including supporting documentation;
4386	4386	2 (iv) certification of the quantities of
4387	4387	3 renewable energy credits that the customer will
4388	4388	4 purchase each year under such contract or
4389	4389	5 contracts, including supporting documentation;
4390	4390	6 (v) proof that the contract is sufficient to
4391	4391	7 produce renewable energy credits to be equivalent
4392	4392	8 in volume to at least 40% of the large energy
4393	4393	9 customer's usage from the previous delivery year,
4394	4394	10 measured to the nearest megawatt-hour; and
4395	4395	11 (vi) certification that the customer intends
4396	4396	12 to maintain the contract for the duration of the
4397	4397	13 length of the contract.
4398	4398	14 (6) If a customer receives the self-direct credit
4399	4399	15 but fails to properly procure and retire renewable
4400	4400	16 energy credits as required under this subparagraph
4401	4401	17 (R), the Commission, on petition from the Agency and
4402	4402	18 after notice and hearing, may direct such customer's
4403	4403	19 utility to recover the cost of the wrongfully received
4404	4404	20 self-direct credits plus interest through an adder to
4405	4405	21 charges assessed pursuant to Section 16-108 of the
4406	4406	22 Public Utilities Act. Self-direct customers who
4407	4407	23 knowingly fail to properly procure and retire
4408	4408	24 renewable energy credits and do not notify the Agency
4409	4409	25 are ineligible for continued participation in the
4410	4410	26 self-direct renewable portfolio standard compliance
4411	4411
4412	4412
4413	4413
4414	4414
4415	4415
4416	4416	SB2497 - 122 - LRB104 12224 JDS 22330 b
4417	4417
4418	4418
4419	4419	SB2497- 123 -LRB104 12224 JDS 22330 b SB2497 - 123 - LRB104 12224 JDS 22330 b
4420	4420	SB2497 - 123 - LRB104 12224 JDS 22330 b
4421	4421	1 program.
4422	4422	2 (2) (Blank).
4423	4423	3 (3) (Blank).
4424	4424	4 (4) The electric utility shall retire all renewable
4425	4425	5 energy credits used to comply with the standard.
4426	4426	6 (5) Beginning with the 2010 delivery year and ending
4427	4427	7 June 1, 2017, an electric utility subject to this
4428	4428	8 subsection (c) shall apply the lesser of the maximum
4429	4429	9 alternative compliance payment rate or the most recent
4430	4430	10 estimated alternative compliance payment rate for its
4431	4431	11 service territory for the corresponding compliance period,
4432	4432	12 established pursuant to subsection (d) of Section 16-115D
4433	4433	13 of the Public Utilities Act to its retail customers that
4434	4434	14 take service pursuant to the electric utility's hourly
4435	4435	15 pricing tariff or tariffs. The electric utility shall
4436	4436	16 retain all amounts collected as a result of the
4437	4437	17 application of the alternative compliance payment rate or
4438	4438	18 rates to such customers, and, beginning in 2011, the
4439	4439	19 utility shall include in the information provided under
4440	4440	20 item (1) of subsection (d) of Section 16-111.5 of the
4441	4441	21 Public Utilities Act the amounts collected under the
4442	4442	22 alternative compliance payment rate or rates for the prior
4443	4443	23 year ending May 31. Notwithstanding any limitation on the
4444	4444	24 procurement of renewable energy resources imposed by item
4445	4445	25 (2) of this subsection (c), the Agency shall increase its
4446	4446	26 spending on the purchase of renewable energy resources to
4447	4447
4448	4448
4449	4449
4450	4450
4451	4451
4452	4452	SB2497 - 123 - LRB104 12224 JDS 22330 b
4453	4453
4454	4454
4455	4455	SB2497- 124 -LRB104 12224 JDS 22330 b SB2497 - 124 - LRB104 12224 JDS 22330 b
4456	4456	SB2497 - 124 - LRB104 12224 JDS 22330 b
4457	4457	1 be procured by the electric utility for the next plan year
4458	4458	2 by an amount equal to the amounts collected by the utility
4459	4459	3 under the alternative compliance payment rate or rates in
4460	4460	4 the prior year ending May 31.
4461	4461	5 (6) The electric utility shall be entitled to recover
4462	4462	6 all of its costs associated with the procurement of
4463	4463	7 renewable energy credits under plans approved under this
4464	4464	8 Section and Section 16-111.5 of the Public Utilities Act.
4465	4465	9 These costs shall include associated reasonable expenses
4466	4466	10 for implementing the procurement programs, including, but
4467	4467	11 not limited to, the costs of administering and evaluating
4468	4468	12 the Adjustable Block program, through an automatic
4469	4469	13 adjustment clause tariff in accordance with subsection (k)
4470	4470	14 of Section 16-108 of the Public Utilities Act.
4471	4471	15 (7) Renewable energy credits procured from new
4472	4472	16 photovoltaic projects or new distributed renewable energy
4473	4473	17 generation devices under this Section after June 1, 2017
4474	4474	18 (the effective date of Public Act 99-906) must be procured
4475	4475	19 from devices installed by a qualified person in compliance
4476	4476	20 with the requirements of Section 16-128A of the Public
4477	4477	21 Utilities Act and any rules or regulations adopted
4478	4478	22 thereunder.
4479	4479	23 In meeting the renewable energy requirements of this
4480	4480	24 subsection (c), to the extent feasible and consistent with
4481	4481	25 State and federal law, the renewable energy credit
4482	4482	26 procurements, Adjustable Block solar program, and
4483	4483
4484	4484
4485	4485
4486	4486
4487	4487
4488	4488	SB2497 - 124 - LRB104 12224 JDS 22330 b
4489	4489
4490	4490
4491	4491	SB2497- 125 -LRB104 12224 JDS 22330 b SB2497 - 125 - LRB104 12224 JDS 22330 b
4492	4492	SB2497 - 125 - LRB104 12224 JDS 22330 b
4493	4493	1 community renewable generation program shall provide
4494	4494	2 employment opportunities for all segments of the
4495	4495	3 population and workforce, including minority-owned and
4496	4496	4 female-owned business enterprises, and shall not,
4497	4497	5 consistent with State and federal law, discriminate based
4498	4498	6 on race or socioeconomic status.
4499	4499	7 (c-5) Procurement of renewable energy credits from new
4500	4500	8 renewable energy facilities installed at or adjacent to the
4501	4501	9 sites of electric generating facilities that burn or burned
4502	4502	10 coal as their primary fuel source.
4503	4503	11 (1) In addition to the procurement of renewable energy
4504	4504	12 credits pursuant to long-term renewable resources
4505	4505	13 procurement plans in accordance with subsection (c) of
4506	4506	14 this Section and Section 16-111.5 of the Public Utilities
4507	4507	15 Act, the Agency shall conduct procurement events in
4508	4508	16 accordance with this subsection (c-5) for the procurement
4509	4509	17 by electric utilities that served more than 300,000 retail
4510	4510	18 customers in this State as of January 1, 2019 of renewable
4511	4511	19 energy credits from new renewable energy facilities to be
4512	4512	20 installed at or adjacent to the sites of electric
4513	4513	21 generating facilities that, as of January 1, 2016, burned
4514	4514	22 coal as their primary fuel source and meet the other
4515	4515	23 criteria specified in this subsection (c-5). For purposes
4516	4516	24 of this subsection (c-5), "new renewable energy facility"
4517	4517	25 means a new utility-scale solar project as defined in this
4518	4518	26 Section 1-75. The renewable energy credits procured
4519	4519
4520	4520
4521	4521
4522	4522
4523	4523
4524	4524	SB2497 - 125 - LRB104 12224 JDS 22330 b
4525	4525
4526	4526
4527	4527	SB2497- 126 -LRB104 12224 JDS 22330 b SB2497 - 126 - LRB104 12224 JDS 22330 b
4528	4528	SB2497 - 126 - LRB104 12224 JDS 22330 b
4529	4529	1 pursuant to this subsection (c-5) may be included or
4530	4530	2 counted for purposes of compliance with the amounts of
4531	4531	3 renewable energy credits required to be procured pursuant
4532	4532	4 to subsection (c) of this Section to the extent that there
4533	4533	5 are otherwise shortfalls in compliance with such
4534	4534	6 requirements. The procurement of renewable energy credits
4535	4535	7 by electric utilities pursuant to this subsection (c-5)
4536	4536	8 shall be funded solely by revenues collected from the Coal
4537	4537	9 to Solar and Energy Storage Initiative Charge provided for
4538	4538	10 in this subsection (c-5) and subsection (i-5) of Section
4539	4539	11 16-108 of the Public Utilities Act, shall not be funded by
4540	4540	12 revenues collected through any of the other funding
4541	4541	13 mechanisms provided for in subsection (c) of this Section,
4542	4542	14 and shall not be subject to the limitation imposed by
4543	4543	15 subsection (c) on charges to retail customers for costs to
4544	4544	16 procure renewable energy resources pursuant to subsection
4545	4545	17 (c), and shall not be subject to any other requirements or
4546	4546	18 limitations of subsection (c).
4547	4547	19 (2) The Agency shall conduct 2 procurement events to
4548	4548	20 select owners of electric generating facilities meeting
4549	4549	21 the eligibility criteria specified in this subsection
4550	4550	22 (c-5) to enter into long-term contracts to sell renewable
4551	4551	23 energy credits to electric utilities serving more than
4552	4552	24 300,000 retail customers in this State as of January 1,
4553	4553	25 2019. The first procurement event shall be conducted no
4554	4554	26 later than March 31, 2022, unless the Agency elects to
4555	4555
4556	4556
4557	4557
4558	4558
4559	4559
4560	4560	SB2497 - 126 - LRB104 12224 JDS 22330 b
4561	4561
4562	4562
4563	4563	SB2497- 127 -LRB104 12224 JDS 22330 b SB2497 - 127 - LRB104 12224 JDS 22330 b
4564	4564	SB2497 - 127 - LRB104 12224 JDS 22330 b
4565	4565	1 delay it, until no later than May 1, 2022, due to its
4566	4566	2 overall volume of work, and shall be to select owners of
4567	4567	3 electric generating facilities located in this State and
4568	4568	4 south of federal Interstate Highway 80 that meet the
4569	4569	5 eligibility criteria specified in this subsection (c-5).
4570	4570	6 The second procurement event shall be conducted no sooner
4571	4571	7 than September 30, 2022 and no later than October 31, 2022
4572	4572	8 and shall be to select owners of electric generating
4573	4573	9 facilities located anywhere in this State that meet the
4574	4574	10 eligibility criteria specified in this subsection (c-5).
4575	4575	11 The Agency shall establish and announce a time period,
4576	4576	12 which shall begin no later than 30 days prior to the
4577	4577	13 scheduled date for the procurement event, during which
4578	4578	14 applicants may submit applications to be selected as
4579	4579	15 suppliers of renewable energy credits pursuant to this
4580	4580	16 subsection (c-5). The eligibility criteria for selection
4581	4581	17 as a supplier of renewable energy credits pursuant to this
4582	4582	18 subsection (c-5) shall be as follows:
4583	4583	19 (A) The applicant owns an electric generating
4584	4584	20 facility located in this State that: (i) as of January
4585	4585	21 1, 2016, burned coal as its primary fuel to generate
4586	4586	22 electricity; and (ii) has, or had prior to retirement,
4587	4587	23 an electric generating capacity of at least 150
4588	4588	24 megawatts. The electric generating facility can be
4589	4589	25 either: (i) retired as of the date of the procurement
4590	4590	26 event; or (ii) still operating as of the date of the
4591	4591
4592	4592
4593	4593
4594	4594
4595	4595
4596	4596	SB2497 - 127 - LRB104 12224 JDS 22330 b
4597	4597
4598	4598
4599	4599	SB2497- 128 -LRB104 12224 JDS 22330 b SB2497 - 128 - LRB104 12224 JDS 22330 b
4600	4600	SB2497 - 128 - LRB104 12224 JDS 22330 b
4601	4601	1 procurement event.
4602	4602	2 (B) The applicant is not (i) an electric
4603	4603	3 cooperative as defined in Section 3-119 of the Public
4604	4604	4 Utilities Act, or (ii) an entity described in
4605	4605	5 subsection (b)(1) of Section 3-105 of the Public
4606	4606	6 Utilities Act, or an association or consortium of or
4607	4607	7 an entity owned by entities described in (i) or (ii);
4608	4608	8 and the coal-fueled electric generating facility was
4609	4609	9 at one time owned, in whole or in part, by a public
4610	4610	10 utility as defined in Section 3-105 of the Public
4611	4611	11 Utilities Act.
4612	4612	12 (C) If participating in the first procurement
4613	4613	13 event, the applicant proposes and commits to construct
4614	4614	14 and operate, at the site, and if necessary for
4615	4615	15 sufficient space on property adjacent to the existing
4616	4616	16 property, at which the electric generating facility
4617	4617	17 identified in paragraph (A) is located: (i) a new
4618	4618	18 renewable energy facility of at least 20 megawatts but
4619	4619	19 no more than 100 megawatts of electric generating
4620	4620	20 capacity, and (ii) an energy storage facility having a
4621	4621	21 storage capacity equal to at least 2 megawatts and at
4622	4622	22 most 10 megawatts. If participating in the second
4623	4623	23 procurement event, the applicant proposes and commits
4624	4624	24 to construct and operate, at the site, and if
4625	4625	25 necessary for sufficient space on property adjacent to
4626	4626	26 the existing property, at which the electric
4627	4627
4628	4628
4629	4629
4630	4630
4631	4631
4632	4632	SB2497 - 128 - LRB104 12224 JDS 22330 b
4633	4633
4634	4634
4635	4635	SB2497- 129 -LRB104 12224 JDS 22330 b SB2497 - 129 - LRB104 12224 JDS 22330 b
4636	4636	SB2497 - 129 - LRB104 12224 JDS 22330 b
4637	4637	1 generating facility identified in paragraph (A) is
4638	4638	2 located: (i) a new renewable energy facility of at
4639	4639	3 least 5 megawatts but no more than 20 megawatts of
4640	4640	4 electric generating capacity, and (ii) an energy
4641	4641	5 storage facility having a storage capacity equal to at
4642	4642	6 least 0.5 megawatts and at most one megawatt.
4643	4643	7 (D) The applicant agrees that the new renewable
4644	4644	8 energy facility and the energy storage facility will
4645	4645	9 be constructed or installed by a qualified entity or
4646	4646	10 entities in compliance with the requirements of
4647	4647	11 subsection (g) of Section 16-128A of the Public
4648	4648	12 Utilities Act and any rules adopted thereunder.
4649	4649	13 (E) The applicant agrees that personnel operating
4650	4650	14 the new renewable energy facility and the energy
4651	4651	15 storage facility will have the requisite skills,
4652	4652	16 knowledge, training, experience, and competence, which
4653	4653	17 may be demonstrated by completion or current
4654	4654	18 participation and ultimate completion by employees of
4655	4655	19 an accredited or otherwise recognized apprenticeship
4656	4656	20 program for the employee's particular craft, trade, or
4657	4657	21 skill, including through training and education
4658	4658	22 courses and opportunities offered by the owner to
4659	4659	23 employees of the coal-fueled electric generating
4660	4660	24 facility or by previous employment experience
4661	4661	25 performing the employee's particular work skill or
4662	4662	26 function.
4663	4663
4664	4664
4665	4665
4666	4666
4667	4667
4668	4668	SB2497 - 129 - LRB104 12224 JDS 22330 b
4669	4669
4670	4670
4671	4671	SB2497- 130 -LRB104 12224 JDS 22330 b SB2497 - 130 - LRB104 12224 JDS 22330 b
4672	4672	SB2497 - 130 - LRB104 12224 JDS 22330 b
4673	4673	1 (F) The applicant commits that not less than the
4674	4674	2 prevailing wage, as determined pursuant to the
4675	4675	3 Prevailing Wage Act, will be paid to the applicant's
4676	4676	4 employees engaged in construction activities
4677	4677	5 associated with the new renewable energy facility and
4678	4678	6 the new energy storage facility and to the employees
4679	4679	7 of applicant's contractors engaged in construction
4680	4680	8 activities associated with the new renewable energy
4681	4681	9 facility and the new energy storage facility, and
4682	4682	10 that, on or before the commercial operation date of
4683	4683	11 the new renewable energy facility, the applicant shall
4684	4684	12 file a report with the Agency certifying that the
4685	4685	13 requirements of this subparagraph (F) have been met.
4686	4686	14 (G) The applicant commits that if selected, it
4687	4687	15 will negotiate a project labor agreement for the
4688	4688	16 construction of the new renewable energy facility and
4689	4689	17 associated energy storage facility that includes
4690	4690	18 provisions requiring the parties to the agreement to
4691	4691	19 work together to establish diversity threshold
4692	4692	20 requirements and to ensure best efforts to meet
4693	4693	21 diversity targets, improve diversity at the applicable
4694	4694	22 job site, create diverse apprenticeship opportunities,
4695	4695	23 and create opportunities to employ former coal-fired
4696	4696	24 power plant workers.
4697	4697	25 (H) The applicant commits to enter into a contract
4698	4698	26 or contracts for the applicable duration to provide
4699	4699
4700	4700
4701	4701
4702	4702
4703	4703
4704	4704	SB2497 - 130 - LRB104 12224 JDS 22330 b
4705	4705
4706	4706
4707	4707	SB2497- 131 -LRB104 12224 JDS 22330 b SB2497 - 131 - LRB104 12224 JDS 22330 b
4708	4708	SB2497 - 131 - LRB104 12224 JDS 22330 b
4709	4709	1 specified numbers of renewable energy credits each
4710	4710	2 year from the new renewable energy facility to
4711	4711	3 electric utilities that served more than 300,000
4712	4712	4 retail customers in this State as of January 1, 2019,
4713	4713	5 at a price of $30 per renewable energy credit. The
4714	4714	6 price per renewable energy credit shall be fixed at
4715	4715	7 $30 for the applicable duration and the renewable
4716	4716	8 energy credits shall not be indexed renewable energy
4717	4717	9 credits as provided for in item (v) of subparagraph
4718	4718	10 (G) of paragraph (1) of subsection (c) of Section 1-75
4719	4719	11 of this Act. The applicable duration of each contract
4720	4720	12 shall be 20 years, unless the applicant is physically
4721	4721	13 interconnected to the PJM Interconnection, LLC
4722	4722	14 transmission grid and had a generating capacity of at
4723	4723	15 least 1,200 megawatts as of January 1, 2021, in which
4724	4724	16 case the applicable duration of the contract shall be
4725	4725	17 15 years.
4726	4726	18 (I) The applicant's application is certified by an
4727	4727	19 officer of the applicant and by an officer of the
4728	4728	20 applicant's ultimate parent company, if any.
4729	4729	21 (3) An applicant may submit applications to contract
4730	4730	22 to supply renewable energy credits from more than one new
4731	4731	23 renewable energy facility to be constructed at or adjacent
4732	4732	24 to one or more qualifying electric generating facilities
4733	4733	25 owned by the applicant. The Agency may select new
4734	4734	26 renewable energy facilities to be located at or adjacent
4735	4735
4736	4736
4737	4737
4738	4738
4739	4739
4740	4740	SB2497 - 131 - LRB104 12224 JDS 22330 b
4741	4741
4742	4742
4743	4743	SB2497- 132 -LRB104 12224 JDS 22330 b SB2497 - 132 - LRB104 12224 JDS 22330 b
4744	4744	SB2497 - 132 - LRB104 12224 JDS 22330 b
4745	4745	1 to the sites of more than one qualifying electric
4746	4746	2 generation facility owned by an applicant to contract with
4747	4747	3 electric utilities to supply renewable energy credits from
4748	4748	4 such facilities.
4749	4749	5 (4) The Agency shall assess fees to each applicant to
4750	4750	6 recover the Agency's costs incurred in receiving and
4751	4751	7 evaluating applications, conducting the procurement event,
4752	4752	8 developing contracts for sale, delivery and purchase of
4753	4753	9 renewable energy credits, and monitoring the
4754	4754	10 administration of such contracts, as provided for in this
4755	4755	11 subsection (c-5), including fees paid to a procurement
4756	4756	12 administrator retained by the Agency for one or more of
4757	4757	13 these purposes.
4758	4758	14 (5) The Agency shall select the applicants and the new
4759	4759	15 renewable energy facilities to contract with electric
4760	4760	16 utilities to supply renewable energy credits in accordance
4761	4761	17 with this subsection (c-5). In the first procurement
4762	4762	18 event, the Agency shall select applicants and new
4763	4763	19 renewable energy facilities to supply renewable energy
4764	4764	20 credits, at a price of $30 per renewable energy credit,
4765	4765	21 aggregating to no less than 400,000 renewable energy
4766	4766	22 credits per year for the applicable duration, assuming
4767	4767	23 sufficient qualifying applications to supply, in the
4768	4768	24 aggregate, at least that amount of renewable energy
4769	4769	25 credits per year; and not more than 580,000 renewable
4770	4770	26 energy credits per year for the applicable duration. In
4771	4771
4772	4772
4773	4773
4774	4774
4775	4775
4776	4776	SB2497 - 132 - LRB104 12224 JDS 22330 b
4777	4777
4778	4778
4779	4779	SB2497- 133 -LRB104 12224 JDS 22330 b SB2497 - 133 - LRB104 12224 JDS 22330 b
4780	4780	SB2497 - 133 - LRB104 12224 JDS 22330 b
4781	4781	1 the second procurement event, the Agency shall select
4782	4782	2 applicants and new renewable energy facilities to supply
4783	4783	3 renewable energy credits, at a price of $30 per renewable
4784	4784	4 energy credit, aggregating to no more than 625,000
4785	4785	5 renewable energy credits per year less the amount of
4786	4786	6 renewable energy credits each year contracted for as a
4787	4787	7 result of the first procurement event, for the applicable
4788	4788	8 durations. The number of renewable energy credits to be
4789	4789	9 procured as specified in this paragraph (5) shall not be
4790	4790	10 reduced based on renewable energy credits procured in the
4791	4791	11 self-direct renewable energy credit compliance program
4792	4792	12 established pursuant to subparagraph (R) of paragraph (1)
4793	4793	13 of subsection (c) of Section 1-75.
4794	4794	14 (6) The obligation to purchase renewable energy
4795	4795	15 credits from the applicants and their new renewable energy
4796	4796	16 facilities selected by the Agency shall be allocated to
4797	4797	17 the electric utilities based on their respective
4798	4798	18 percentages of kilowatthours delivered to delivery
4799	4799	19 services customers to the aggregate kilowatthour
4800	4800	20 deliveries by the electric utilities to delivery services
4801	4801	21 customers for the year ended December 31, 2021. In order
4802	4802	22 to achieve these allocation percentages between or among
4803	4803	23 the electric utilities, the Agency shall require each
4804	4804	24 applicant that is selected in the procurement event to
4805	4805	25 enter into a contract with each electric utility for the
4806	4806	26 sale and purchase of renewable energy credits from each
4807	4807
4808	4808
4809	4809
4810	4810
4811	4811
4812	4812	SB2497 - 133 - LRB104 12224 JDS 22330 b
4813	4813
4814	4814
4815	4815	SB2497- 134 -LRB104 12224 JDS 22330 b SB2497 - 134 - LRB104 12224 JDS 22330 b
4816	4816	SB2497 - 134 - LRB104 12224 JDS 22330 b
4817	4817	1 new renewable energy facility to be constructed and
4818	4818	2 operated by the applicant, with the sale and purchase
4819	4819	3 obligations under the contracts to aggregate to the total
4820	4820	4 number of renewable energy credits per year to be supplied
4821	4821	5 by the applicant from the new renewable energy facility.
4822	4822	6 (7) The Agency shall submit its proposed selection of
4823	4823	7 applicants, new renewable energy facilities to be
4824	4824	8 constructed, and renewable energy credit amounts for each
4825	4825	9 procurement event to the Commission for approval. The
4826	4826	10 Commission shall, within 2 business days after receipt of
4827	4827	11 the Agency's proposed selections, approve the proposed
4828	4828	12 selections if it determines that the applicants and the
4829	4829	13 new renewable energy facilities to be constructed meet the
4830	4830	14 selection criteria set forth in this subsection (c-5) and
4831	4831	15 that the Agency seeks approval for contracts of applicable
4832	4832	16 durations aggregating to no more than the maximum amount
4833	4833	17 of renewable energy credits per year authorized by this
4834	4834	18 subsection (c-5) for the procurement event, at a price of
4835	4835	19 $30 per renewable energy credit.
4836	4836	20 (8) The Agency, in conjunction with its procurement
4837	4837	21 administrator if one is retained, the electric utilities,
4838	4838	22 and potential applicants for contracts to produce and
4839	4839	23 supply renewable energy credits pursuant to this
4840	4840	24 subsection (c-5), shall develop a standard form contract
4841	4841	25 for the sale, delivery and purchase of renewable energy
4842	4842	26 credits pursuant to this subsection (c-5). Each contract
4843	4843
4844	4844
4845	4845
4846	4846
4847	4847
4848	4848	SB2497 - 134 - LRB104 12224 JDS 22330 b
4849	4849
4850	4850
4851	4851	SB2497- 135 -LRB104 12224 JDS 22330 b SB2497 - 135 - LRB104 12224 JDS 22330 b
4852	4852	SB2497 - 135 - LRB104 12224 JDS 22330 b
4853	4853	1 resulting from the first procurement event shall allow for
4854	4854	2 a commercial operation date for the new renewable energy
4855	4855	3 facility of either June 1, 2023 or June 1, 2024, with such
4856	4856	4 dates subject to adjustment as provided in this paragraph.
4857	4857	5 Each contract resulting from the second procurement event
4858	4858	6 shall provide for a commercial operation date on June 1
4859	4859	7 next occurring up to 48 months after execution of the
4860	4860	8 contract. Each contract shall provide that the owner shall
4861	4861	9 receive payments for renewable energy credits for the
4862	4862	10 applicable durations beginning with the commercial
4863	4863	11 operation date of the new renewable energy facility. The
4864	4864	12 form contract shall provide for adjustments to the
4865	4865	13 commercial operation and payment start dates as needed due
4866	4866	14 to any delays in completing the procurement and
4867	4867	15 contracting processes, in finalizing interconnection
4868	4868	16 agreements and installing interconnection facilities, and
4869	4869	17 in obtaining other necessary governmental permits and
4870	4870	18 approvals. The form contract shall be, to the maximum
4871	4871	19 extent possible, consistent with standard electric
4872	4872	20 industry contracts for sale, delivery, and purchase of
4873	4873	21 renewable energy credits while taking into account the
4874	4874	22 specific requirements of this subsection (c-5). The form
4875	4875	23 contract shall provide for over-delivery and
4876	4876	24 under-delivery of renewable energy credits within
4877	4877	25 reasonable ranges during each 12-month period and penalty,
4878	4878	26 default, and enforcement provisions for failure of the
4879	4879
4880	4880
4881	4881
4882	4882
4883	4883
4884	4884	SB2497 - 135 - LRB104 12224 JDS 22330 b
4885	4885
4886	4886
4887	4887	SB2497- 136 -LRB104 12224 JDS 22330 b SB2497 - 136 - LRB104 12224 JDS 22330 b
4888	4888	SB2497 - 136 - LRB104 12224 JDS 22330 b
4889	4889	1 selling party to deliver renewable energy credits as
4890	4890	2 specified in the contract and to comply with the
4891	4891	3 requirements of this subsection (c-5). The standard form
4892	4892	4 contract shall specify that all renewable energy credits
4893	4893	5 delivered to the electric utility pursuant to the contract
4894	4894	6 shall be retired. The Agency shall make the proposed
4895	4895	7 contracts available for a reasonable period for comment by
4896	4896	8 potential applicants, and shall publish the final form
4897	4897	9 contract at least 30 days before the date of the first
4898	4898	10 procurement event.
4899	4899	11 (9) Coal to Solar and Energy Storage Initiative
4900	4900	12 Charge.
4901	4901	13 (A) By no later than July 1, 2022, each electric
4902	4902	14 utility that served more than 300,000 retail customers
4903	4903	15 in this State as of January 1, 2019 shall file a tariff
4904	4904	16 with the Commission for the billing and collection of
4905	4905	17 a Coal to Solar and Energy Storage Initiative Charge
4906	4906	18 in accordance with subsection (i-5) of Section 16-108
4907	4907	19 of the Public Utilities Act, with such tariff to be
4908	4908	20 effective, following review and approval or
4909	4909	21 modification by the Commission, beginning January 1,
4910	4910	22 2023. The tariff shall provide for the calculation and
4911	4911	23 setting of the electric utility's Coal to Solar and
4912	4912	24 Energy Storage Initiative Charge to collect revenues
4913	4913	25 estimated to be sufficient, in the aggregate, (i) to
4914	4914	26 enable the electric utility to pay for the renewable
4915	4915
4916	4916
4917	4917
4918	4918
4919	4919
4920	4920	SB2497 - 136 - LRB104 12224 JDS 22330 b
4921	4921
4922	4922
4923	4923	SB2497- 137 -LRB104 12224 JDS 22330 b SB2497 - 137 - LRB104 12224 JDS 22330 b
4924	4924	SB2497 - 137 - LRB104 12224 JDS 22330 b
4925	4925	1 energy credits it has contracted to purchase in the
4926	4926	2 delivery year beginning June 1, 2023 and each delivery
4927	4927	3 year thereafter from new renewable energy facilities
4928	4928	4 located at the sites of qualifying electric generating
4929	4929	5 facilities, and (ii) to fund the grant payments to be
4930	4930	6 made in each delivery year by the Department of
4931	4931	7 Commerce and Economic Opportunity, or any successor
4932	4932	8 department or agency, which shall be referred to in
4933	4933	9 this subsection (c-5) as the Department, pursuant to
4934	4934	10 paragraph (10) of this subsection (c-5). The electric
4935	4935	11 utility's tariff shall provide for the billing and
4936	4936	12 collection of the Coal to Solar and Energy Storage
4937	4937	13 Initiative Charge on each kilowatthour of electricity
4938	4938	14 delivered to its delivery services customers within
4939	4939	15 its service territory and shall provide for an annual
4940	4940	16 reconciliation of revenues collected with actual
4941	4941	17 costs, in accordance with subsection (i-5) of Section
4942	4942	18 16-108 of the Public Utilities Act.
4943	4943	19 (B) Each electric utility shall remit on a monthly
4944	4944	20 basis to the State Treasurer, for deposit in the Coal
4945	4945	21 to Solar and Energy Storage Initiative Fund provided
4946	4946	22 for in this subsection (c-5), the electric utility's
4947	4947	23 collections of the Coal to Solar and Energy Storage
4948	4948	24 Initiative Charge in the amount estimated to be needed
4949	4949	25 by the Department for grant payments pursuant to grant
4950	4950	26 contracts entered into by the Department pursuant to
4951	4951
4952	4952
4953	4953
4954	4954
4955	4955
4956	4956	SB2497 - 137 - LRB104 12224 JDS 22330 b
4957	4957
4958	4958
4959	4959	SB2497- 138 -LRB104 12224 JDS 22330 b SB2497 - 138 - LRB104 12224 JDS 22330 b
4960	4960	SB2497 - 138 - LRB104 12224 JDS 22330 b
4961	4961	1 paragraph (10) of this subsection (c-5).
4962	4962	2 (10) Coal to Solar and Energy Storage Initiative Fund.
4963	4963	3 (A) The Coal to Solar and Energy Storage
4964	4964	4 Initiative Fund is established as a special fund in
4965	4965	5 the State treasury. The Coal to Solar and Energy
4966	4966	6 Storage Initiative Fund is authorized to receive, by
4967	4967	7 statutory deposit, that portion specified in item (B)
4968	4968	8 of paragraph (9) of this subsection (c-5) of moneys
4969	4969	9 collected by electric utilities through imposition of
4970	4970	10 the Coal to Solar and Energy Storage Initiative Charge
4971	4971	11 required by this subsection (c-5). The Coal to Solar
4972	4972	12 and Energy Storage Initiative Fund shall be
4973	4973	13 administered by the Department to provide grants to
4974	4974	14 support the installation and operation of energy
4975	4975	15 storage facilities at the sites of qualifying electric
4976	4976	16 generating facilities meeting the criteria specified
4977	4977	17 in this paragraph (10).
4978	4978	18 (B) The Coal to Solar and Energy Storage
4979	4979	19 Initiative Fund shall not be subject to sweeps,
4980	4980	20 administrative charges, or chargebacks, including, but
4981	4981	21 not limited to, those authorized under Section 8h of
4982	4982	22 the State Finance Act, that would in any way result in
4983	4983	23 the transfer of those funds from the Coal to Solar and
4984	4984	24 Energy Storage Initiative Fund to any other fund of
4985	4985	25 this State or in having any such funds utilized for any
4986	4986	26 purpose other than the express purposes set forth in
4987	4987
4988	4988
4989	4989
4990	4990
4991	4991
4992	4992	SB2497 - 138 - LRB104 12224 JDS 22330 b
4993	4993
4994	4994
4995	4995	SB2497- 139 -LRB104 12224 JDS 22330 b SB2497 - 139 - LRB104 12224 JDS 22330 b
4996	4996	SB2497 - 139 - LRB104 12224 JDS 22330 b
4997	4997	1 this paragraph (10).
4998	4998	2 (C) The Department shall utilize up to
4999	4999	3 $280,500,000 in the Coal to Solar and Energy Storage
5000	5000	4 Initiative Fund for grants, assuming sufficient
5001	5001	5 qualifying applicants, to support installation of
5002	5002	6 energy storage facilities at the sites of up to 3
5003	5003	7 qualifying electric generating facilities located in
5004	5004	8 the Midcontinent Independent System Operator, Inc.,
5005	5005	9 region in Illinois and the sites of up to 2 qualifying
5006	5006	10 electric generating facilities located in the PJM
5007	5007	11 Interconnection, LLC region in Illinois that meet the
5008	5008	12 criteria set forth in this subparagraph (C). The
5009	5009	13 criteria for receipt of a grant pursuant to this
5010	5010	14 subparagraph (C) are as follows:
5011	5011	15 (1) the electric generating facility at the
5012	5012	16 site has, or had prior to retirement, an electric
5013	5013	17 generating capacity of at least 150 megawatts;
5014	5014	18 (2) the electric generating facility burns (or
5015	5015	19 burned prior to retirement) coal as its primary
5016	5016	20 source of fuel;
5017	5017	21 (3) if the electric generating facility is
5018	5018	22 retired, it was retired subsequent to January 1,
5019	5019	23 2016;
5020	5020	24 (4) the owner of the electric generating
5021	5021	25 facility has not been selected by the Agency
5022	5022	26 pursuant to this subsection (c-5) of this Section
5023	5023
5024	5024
5025	5025
5026	5026
5027	5027
5028	5028	SB2497 - 139 - LRB104 12224 JDS 22330 b
5029	5029
5030	5030
5031	5031	SB2497- 140 -LRB104 12224 JDS 22330 b SB2497 - 140 - LRB104 12224 JDS 22330 b
5032	5032	SB2497 - 140 - LRB104 12224 JDS 22330 b
5033	5033	1 to enter into a contract to sell renewable energy
5034	5034	2 credits to one or more electric utilities from a
5035	5035	3 new renewable energy facility located or to be
5036	5036	4 located at or adjacent to the site at which the
5037	5037	5 electric generating facility is located;
5038	5038	6 (5) the electric generating facility located
5039	5039	7 at the site was at one time owned, in whole or in
5040	5040	8 part, by a public utility as defined in Section
5041	5041	9 3-105 of the Public Utilities Act;
5042	5042	10 (6) the electric generating facility at the
5043	5043	11 site is not owned by (i) an electric cooperative
5044	5044	12 as defined in Section 3-119 of the Public
5045	5045	13 Utilities Act, or (ii) an entity described in
5046	5046	14 subsection (b)(1) of Section 3-105 of the Public
5047	5047	15 Utilities Act, or an association or consortium of
5048	5048	16 or an entity owned by entities described in items
5049	5049	17 (i) or (ii);
5050	5050	18 (7) the proposed energy storage facility at
5051	5051	19 the site will have energy storage capacity of at
5052	5052	20 least 37 megawatts;
5053	5053	21 (8) the owner commits to place the energy
5054	5054	22 storage facility into commercial operation on
5055	5055	23 either June 1, 2023, June 1, 2024, or June 1, 2025,
5056	5056	24 with such date subject to adjustment as needed due
5057	5057	25 to any delays in completing the grant contracting
5058	5058	26 process, in finalizing interconnection agreements
5059	5059
5060	5060
5061	5061
5062	5062
5063	5063
5064	5064	SB2497 - 140 - LRB104 12224 JDS 22330 b
5065	5065
5066	5066
5067	5067	SB2497- 141 -LRB104 12224 JDS 22330 b SB2497 - 141 - LRB104 12224 JDS 22330 b
5068	5068	SB2497 - 141 - LRB104 12224 JDS 22330 b
5069	5069	1 and in installing interconnection facilities, and
5070	5070	2 in obtaining necessary governmental permits and
5071	5071	3 approvals;
5072	5072	4 (9) the owner agrees that the new energy
5073	5073	5 storage facility will be constructed or installed
5074	5074	6 by a qualified entity or entities consistent with
5075	5075	7 the requirements of subsection (g) of Section
5076	5076	8 16-128A of the Public Utilities Act and any rules
5077	5077	9 adopted under that Section;
5078	5078	10 (10) the owner agrees that personnel operating
5079	5079	11 the energy storage facility will have the
5080	5080	12 requisite skills, knowledge, training, experience,
5081	5081	13 and competence, which may be demonstrated by
5082	5082	14 completion or current participation and ultimate
5083	5083	15 completion by employees of an accredited or
5084	5084	16 otherwise recognized apprenticeship program for
5085	5085	17 the employee's particular craft, trade, or skill,
5086	5086	18 including through training and education courses
5087	5087	19 and opportunities offered by the owner to
5088	5088	20 employees of the coal-fueled electric generating
5089	5089	21 facility or by previous employment experience
5090	5090	22 performing the employee's particular work skill or
5091	5091	23 function;
5092	5092	24 (11) the owner commits that not less than the
5093	5093	25 prevailing wage, as determined pursuant to the
5094	5094	26 Prevailing Wage Act, will be paid to the owner's
5095	5095
5096	5096
5097	5097
5098	5098
5099	5099
5100	5100	SB2497 - 141 - LRB104 12224 JDS 22330 b
5101	5101
5102	5102
5103	5103	SB2497- 142 -LRB104 12224 JDS 22330 b SB2497 - 142 - LRB104 12224 JDS 22330 b
5104	5104	SB2497 - 142 - LRB104 12224 JDS 22330 b
5105	5105	1 employees engaged in construction activities
5106	5106	2 associated with the new energy storage facility
5107	5107	3 and to the employees of the owner's contractors
5108	5108	4 engaged in construction activities associated with
5109	5109	5 the new energy storage facility, and that, on or
5110	5110	6 before the commercial operation date of the new
5111	5111	7 energy storage facility, the owner shall file a
5112	5112	8 report with the Department certifying that the
5113	5113	9 requirements of this subparagraph (11) have been
5114	5114	10 met; and
5115	5115	11 (12) the owner commits that if selected to
5116	5116	12 receive a grant, it will negotiate a project labor
5117	5117	13 agreement for the construction of the new energy
5118	5118	14 storage facility that includes provisions
5119	5119	15 requiring the parties to the agreement to work
5120	5120	16 together to establish diversity threshold
5121	5121	17 requirements and to ensure best efforts to meet
5122	5122	18 diversity targets, improve diversity at the
5123	5123	19 applicable job site, create diverse apprenticeship
5124	5124	20 opportunities, and create opportunities to employ
5125	5125	21 former coal-fired power plant workers.
5126	5126	22 The Department shall accept applications for this
5127	5127	23 grant program until March 31, 2022 and shall announce
5128	5128	24 the award of grants no later than June 1, 2022. The
5129	5129	25 Department shall make the grant payments to a
5130	5130	26 recipient in equal annual amounts for 10 years
5131	5131
5132	5132
5133	5133
5134	5134
5135	5135
5136	5136	SB2497 - 142 - LRB104 12224 JDS 22330 b
5137	5137
5138	5138
5139	5139	SB2497- 143 -LRB104 12224 JDS 22330 b SB2497 - 143 - LRB104 12224 JDS 22330 b
5140	5140	SB2497 - 143 - LRB104 12224 JDS 22330 b
5141	5141	1 following the date the energy storage facility is
5142	5142	2 placed into commercial operation. The annual grant
5143	5143	3 payments to a qualifying energy storage facility shall
5144	5144	4 be $110,000 per megawatt of energy storage capacity,
5145	5145	5 with total annual grant payments pursuant to this
5146	5146	6 subparagraph (C) for qualifying energy storage
5147	5147	7 facilities not to exceed $28,050,000 in any year.
5148	5148	8 (D) Grants of funding for energy storage
5149	5149	9 facilities pursuant to subparagraph (C) of this
5150	5150	10 paragraph (10), from the Coal to Solar and Energy
5151	5151	11 Storage Initiative Fund, shall be memorialized in
5152	5152	12 grant contracts between the Department and the
5153	5153	13 recipient. The grant contracts shall specify the date
5154	5154	14 or dates in each year on which the annual grant
5155	5155	15 payments shall be paid.
5156	5156	16 (E) All disbursements from the Coal to Solar and
5157	5157	17 Energy Storage Initiative Fund shall be made only upon
5158	5158	18 warrants of the Comptroller drawn upon the Treasurer
5159	5159	19 as custodian of the Fund upon vouchers signed by the
5160	5160	20 Director of the Department or by the person or persons
5161	5161	21 designated by the Director of the Department for that
5162	5162	22 purpose. The Comptroller is authorized to draw the
5163	5163	23 warrants upon vouchers so signed. The Treasurer shall
5164	5164	24 accept all written warrants so signed and shall be
5165	5165	25 released from liability for all payments made on those
5166	5166	26 warrants.
5167	5167
5168	5168
5169	5169
5170	5170
5171	5171
5172	5172	SB2497 - 143 - LRB104 12224 JDS 22330 b
5173	5173
5174	5174
5175	5175	SB2497- 144 -LRB104 12224 JDS 22330 b SB2497 - 144 - LRB104 12224 JDS 22330 b
5176	5176	SB2497 - 144 - LRB104 12224 JDS 22330 b
5177	5177	1 (11) Diversity, equity, and inclusion plans.
5178	5178	2 (A) Each applicant selected in a procurement event
5179	5179	3 to contract to supply renewable energy credits in
5180	5180	4 accordance with this subsection (c-5) and each owner
5181	5181	5 selected by the Department to receive a grant or
5182	5182	6 grants to support the construction and operation of a
5183	5183	7 new energy storage facility or facilities in
5184	5184	8 accordance with this subsection (c-5) shall, within 60
5185	5185	9 days following the Commission's approval of the
5186	5186	10 applicant to contract to supply renewable energy
5187	5187	11 credits or within 60 days following execution of a
5188	5188	12 grant contract with the Department, as applicable,
5189	5189	13 submit to the Commission a diversity, equity, and
5190	5190	14 inclusion plan setting forth the applicant's or
5191	5191	15 owner's numeric goals for the diversity composition of
5192	5192	16 its supplier entities for the new renewable energy
5193	5193	17 facility or new energy storage facility, as
5194	5194	18 applicable, which shall be referred to for purposes of
5195	5195	19 this paragraph (11) as the project, and the
5196	5196	20 applicant's or owner's action plan and schedule for
5197	5197	21 achieving those goals.
5198	5198	22 (B) For purposes of this paragraph (11), diversity
5199	5199	23 composition shall be based on the percentage, which
5200	5200	24 shall be a minimum of 25%, of eligible expenditures
5201	5201	25 for contract awards for materials and services (which
5202	5202	26 shall be defined in the plan) to business enterprises
5203	5203
5204	5204
5205	5205
5206	5206
5207	5207
5208	5208	SB2497 - 144 - LRB104 12224 JDS 22330 b
5209	5209
5210	5210
5211	5211	SB2497- 145 -LRB104 12224 JDS 22330 b SB2497 - 145 - LRB104 12224 JDS 22330 b
5212	5212	SB2497 - 145 - LRB104 12224 JDS 22330 b
5213	5213	1 owned by minority persons, women, or persons with
5214	5214	2 disabilities as defined in Section 2 of the Business
5215	5215	3 Enterprise for Minorities, Women, and Persons with
5216	5216	4 Disabilities Act, to LGBTQ business enterprises, to
5217	5217	5 veteran-owned business enterprises, and to business
5218	5218	6 enterprises located in environmental justice
5219	5219	7 communities. The diversity composition goals of the
5220	5220	8 plan may include eligible expenditures in areas for
5221	5221	9 vendor or supplier opportunities in addition to
5222	5222	10 development and construction of the project, and may
5223	5223	11 exclude from eligible expenditures materials and
5224	5224	12 services with limited market availability, limited
5225	5225	13 production and availability from suppliers in the
5226	5226	14 United States, such as solar panels and storage
5227	5227	15 batteries, and material and services that are subject
5228	5228	16 to critical energy infrastructure or cybersecurity
5229	5229	17 requirements or restrictions. The plan may provide
5230	5230	18 that the diversity composition goals may be met
5231	5231	19 through Tier 1 Direct or Tier 2 subcontracting
5232	5232	20 expenditures or a combination thereof for the project.
5233	5233	21 (C) The plan shall provide for, but not be limited
5234	5234	22 to: (i) internal initiatives, including multi-tier
5235	5235	23 initiatives, by the applicant or owner, or by its
5236	5236	24 engineering, procurement and construction contractor
5237	5237	25 if one is used for the project, which for purposes of
5238	5238	26 this paragraph (11) shall be referred to as the EPC
5239	5239
5240	5240
5241	5241
5242	5242
5243	5243
5244	5244	SB2497 - 145 - LRB104 12224 JDS 22330 b
5245	5245
5246	5246
5247	5247	SB2497- 146 -LRB104 12224 JDS 22330 b SB2497 - 146 - LRB104 12224 JDS 22330 b
5248	5248	SB2497 - 146 - LRB104 12224 JDS 22330 b
5249	5249	1 contractor, to enable diverse businesses to be
5250	5250	2 considered fairly for selection to provide materials
5251	5251	3 and services; (ii) requirements for the applicant or
5252	5252	4 owner or its EPC contractor to proactively solicit and
5253	5253	5 utilize diverse businesses to provide materials and
5254	5254	6 services; and (iii) requirements for the applicant or
5255	5255	7 owner or its EPC contractor to hire a diverse
5256	5256	8 workforce for the project. The plan shall include a
5257	5257	9 description of the applicant's or owner's diversity
5258	5258	10 recruiting efforts both for the project and for other
5259	5259	11 areas of the applicant's or owner's business
5260	5260	12 operations. The plan shall provide for the imposition
5261	5261	13 of financial penalties on the applicant's or owner's
5262	5262	14 EPC contractor for failure to exercise best efforts to
5263	5263	15 comply with and execute the EPC contractor's diversity
5264	5264	16 obligations under the plan. The plan may provide for
5265	5265	17 the applicant or owner to set aside a portion of the
5266	5266	18 work on the project to serve as an incubation program
5267	5267	19 for qualified businesses, as specified in the plan,
5268	5268	20 owned by minority persons, women, persons with
5269	5269	21 disabilities, LGBTQ persons, and veterans, and
5270	5270	22 businesses located in environmental justice
5271	5271	23 communities, seeking to enter the renewable energy
5272	5272	24 industry.
5273	5273	25 (D) The applicant or owner may submit a revised or
5274	5274	26 updated plan to the Commission from time to time as
5275	5275
5276	5276
5277	5277
5278	5278
5279	5279
5280	5280	SB2497 - 146 - LRB104 12224 JDS 22330 b
5281	5281
5282	5282
5283	5283	SB2497- 147 -LRB104 12224 JDS 22330 b SB2497 - 147 - LRB104 12224 JDS 22330 b
5284	5284	SB2497 - 147 - LRB104 12224 JDS 22330 b
5285	5285	1 circumstances warrant. The applicant or owner shall
5286	5286	2 file annual reports with the Commission detailing the
5287	5287	3 applicant's or owner's progress in implementing its
5288	5288	4 plan and achieving its goals and any modifications the
5289	5289	5 applicant or owner has made to its plan to better
5290	5290	6 achieve its diversity, equity and inclusion goals. The
5291	5291	7 applicant or owner shall file a final report on the
5292	5292	8 fifth June 1 following the commercial operation date
5293	5293	9 of the new renewable energy resource or new energy
5294	5294	10 storage facility, but the applicant or owner shall
5295	5295	11 thereafter continue to be subject to applicable
5296	5296	12 reporting requirements of Section 5-117 of the Public
5297	5297	13 Utilities Act.
5298	5298	14 (c-10) Equity accountability system. It is the purpose of
5299	5299	15 this subsection (c-10) to create an equity accountability
5300	5300	16 system, which includes the minimum equity standards for all
5301	5301	17 renewable energy procurements, the equity category of the
5302	5302	18 Adjustable Block Program, and the equity prioritization for
5303	5303	19 noncompetitive procurements, that is successful in advancing
5304	5304	20 priority access to the clean energy economy for businesses and
5305	5305	21 workers from communities that have been excluded from economic
5306	5306	22 opportunities in the energy sector, have been subject to
5307	5307	23 disproportionate levels of pollution, and have
5308	5308	24 disproportionately experienced negative public health
5309	5309	25 outcomes. Further, it is the purpose of this subsection to
5310	5310	26 ensure that this equity accountability system is successful in
5311	5311
5312	5312
5313	5313
5314	5314
5315	5315
5316	5316	SB2497 - 147 - LRB104 12224 JDS 22330 b
5317	5317
5318	5318
5319	5319	SB2497- 148 -LRB104 12224 JDS 22330 b SB2497 - 148 - LRB104 12224 JDS 22330 b
5320	5320	SB2497 - 148 - LRB104 12224 JDS 22330 b
5321	5321	1 advancing equity across Illinois by providing access to the
5322	5322	2 clean energy economy for businesses and workers from
5323	5323	3 communities that have been historically excluded from economic
5324	5324	4 opportunities in the energy sector, have been subject to
5325	5325	5 disproportionate levels of pollution, and have
5326	5326	6 disproportionately experienced negative public health
5327	5327	7 outcomes.
5328	5328	8 (1) Minimum equity standards. The Agency shall create
5329	5329	9 programs with the purpose of increasing access to and
5330	5330	10 development of equity eligible contractors, who are prime
5331	5331	11 contractors and subcontractors, across all of the programs
5332	5332	12 it manages. All applications for renewable energy credit
5333	5333	13 procurements shall comply with specific minimum equity
5334	5334	14 commitments. Starting in the delivery year immediately
5335	5335	15 following the next long-term renewable resources
5336	5336	16 procurement plan, at least 10% of the project workforce
5337	5337	17 for each entity participating in a procurement program
5338	5338	18 outlined in this subsection (c-10) must be done by equity
5339	5339	19 eligible persons or equity eligible contractors. The
5340	5340	20 Agency shall increase the minimum percentage each delivery
5341	5341	21 year thereafter by increments that ensure a statewide
5342	5342	22 average of 30% of the project workforce for each entity
5343	5343	23 participating in a procurement program is done by equity
5344	5344	24 eligible persons or equity eligible contractors by 2030.
5345	5345	25 The Agency shall propose a schedule of percentage
5346	5346	26 increases to the minimum equity standards in its draft
5347	5347
5348	5348
5349	5349
5350	5350
5351	5351
5352	5352	SB2497 - 148 - LRB104 12224 JDS 22330 b
5353	5353
5354	5354
5355	5355	SB2497- 149 -LRB104 12224 JDS 22330 b SB2497 - 149 - LRB104 12224 JDS 22330 b
5356	5356	SB2497 - 149 - LRB104 12224 JDS 22330 b
5357	5357	1 revised renewable energy resources procurement plan
5358	5358	2 submitted to the Commission for approval pursuant to
5359	5359	3 paragraph (5) of subsection (b) of Section 16-111.5 of the
5360	5360	4 Public Utilities Act. In determining these annual
5361	5361	5 increases, the Agency shall have the discretion to
5362	5362	6 establish different minimum equity standards for different
5363	5363	7 types of procurements and different regions of the State
5364	5364	8 if the Agency finds that doing so will further the
5365	5365	9 purposes of this subsection (c-10). The proposed schedule
5366	5366	10 of annual increases shall be revisited and updated on an
5367	5367	11 annual basis. Revisions shall be developed with
5368	5368	12 stakeholder input, including from equity eligible persons,
5369	5369	13 equity eligible contractors, clean energy industry
5370	5370	14 representatives, and community-based organizations that
5371	5371	15 work with such persons and contractors.
5372	5372	16 (A) At the start of each delivery year, the Agency
5373	5373	17 shall require a compliance plan from each entity
5374	5374	18 participating in a procurement program of subsection
5375	5375	19 (c) of this Section that demonstrates how they will
5376	5376	20 achieve compliance with the minimum equity standard
5377	5377	21 percentage for work completed in that delivery year.
5378	5378	22 If an entity applies for its approved vendor or
5379	5379	23 designee status between delivery years, the Agency
5380	5380	24 shall require a compliance plan at the time of
5381	5381	25 application.
5382	5382	26 (B) Halfway through each delivery year, the Agency
5383	5383
5384	5384
5385	5385
5386	5386
5387	5387
5388	5388	SB2497 - 149 - LRB104 12224 JDS 22330 b
5389	5389
5390	5390
5391	5391	SB2497- 150 -LRB104 12224 JDS 22330 b SB2497 - 150 - LRB104 12224 JDS 22330 b
5392	5392	SB2497 - 150 - LRB104 12224 JDS 22330 b
5393	5393	1 shall require each entity participating in a
5394	5394	2 procurement program to confirm that it will achieve
5395	5395	3 compliance in that delivery year, when applicable. The
5396	5396	4 Agency may offer corrective action plans to entities
5397	5397	5 that are not on track to achieve compliance.
5398	5398	6 (C) At the end of each delivery year, each entity
5399	5399	7 participating and completing work in that delivery
5400	5400	8 year in a procurement program of subsection (c) shall
5401	5401	9 submit a report to the Agency that demonstrates how it
5402	5402	10 achieved compliance with the minimum equity standards
5403	5403	11 percentage for that delivery year.
5404	5404	12 (D) The Agency shall prohibit participation in
5405	5405	13 procurement programs by an approved vendor or
5406	5406	14 designee, as applicable, or entities with which an
5407	5407	15 approved vendor or designee, as applicable, shares a
5408	5408	16 common parent company if an approved vendor or
5409	5409	17 designee, as applicable, failed to meet the minimum
5410	5410	18 equity standards for the prior delivery year. Waivers
5411	5411	19 approved for lack of equity eligible persons or equity
5412	5412	20 eligible contractors in a geographic area of a project
5413	5413	21 shall not count against the approved vendor or
5414	5414	22 designee. The Agency shall offer a corrective action
5415	5415	23 plan for any such entities to assist them in obtaining
5416	5416	24 compliance and shall allow continued access to
5417	5417	25 procurement programs upon an approved vendor or
5418	5418	26 designee demonstrating compliance.
5419	5419
5420	5420
5421	5421
5422	5422
5423	5423
5424	5424	SB2497 - 150 - LRB104 12224 JDS 22330 b
5425	5425
5426	5426
5427	5427	SB2497- 151 -LRB104 12224 JDS 22330 b SB2497 - 151 - LRB104 12224 JDS 22330 b
5428	5428	SB2497 - 151 - LRB104 12224 JDS 22330 b
5429	5429	1 (E) The Agency shall pursue efficiencies achieved
5430	5430	2 by combining with other approved vendor or designee
5431	5431	3 reporting.
5432	5432	4 (2) Equity accountability system within the Adjustable
5433	5433	5 Block program. The equity category described in item (vi)
5434	5434	6 of subparagraph (K) of subsection (c) is only available to
5435	5435	7 applicants that are equity eligible contractors.
5436	5436	8 (3) Equity accountability system within competitive
5437	5437	9 procurements. Through its long-term renewable resources
5438	5438	10 procurement plan, the Agency shall develop requirements
5439	5439	11 for ensuring that competitive procurement processes,
5440	5440	12 including utility-scale solar, utility-scale wind, and
5441	5441	13 brownfield site photovoltaic projects, advance the equity
5442	5442	14 goals of this subsection (c-10). Subject to Commission
5443	5443	15 approval, the Agency shall develop bid application
5444	5444	16 requirements and a bid evaluation methodology for ensuring
5445	5445	17 that utilization of equity eligible contractors, whether
5446	5446	18 as bidders or as participants on project development, is
5447	5447	19 optimized, including requiring that winning or successful
5448	5448	20 applicants for utility-scale projects are or will partner
5449	5449	21 with equity eligible contractors and giving preference to
5450	5450	22 bids through which a higher portion of contract value
5451	5451	23 flows to equity eligible contractors. To the extent
5452	5452	24 practicable, entities participating in competitive
5453	5453	25 procurements shall also be required to meet all the equity
5454	5454	26 accountability requirements for approved vendors and their
5455	5455
5456	5456
5457	5457
5458	5458
5459	5459
5460	5460	SB2497 - 151 - LRB104 12224 JDS 22330 b
5461	5461
5462	5462
5463	5463	SB2497- 152 -LRB104 12224 JDS 22330 b SB2497 - 152 - LRB104 12224 JDS 22330 b
5464	5464	SB2497 - 152 - LRB104 12224 JDS 22330 b
5465	5465	1 designees under this subsection (c-10). In developing
5466	5466	2 these requirements, the Agency shall also consider whether
5467	5467	3 equity goals can be further advanced through additional
5468	5468	4 measures.
5469	5469	5 (4) In the first revision to the long-term renewable
5470	5470	6 energy resources procurement plan and each revision
5471	5471	7 thereafter, the Agency shall include the following:
5472	5472	8 (A) The current status and number of equity
5473	5473	9 eligible contractors listed in the Energy Workforce
5474	5474	10 Equity Database designed in subsection (c-25),
5475	5475	11 including the number of equity eligible contractors
5476	5476	12 with current certifications as issued by the Agency.
5477	5477	13 (B) A mechanism for measuring, tracking, and
5478	5478	14 reporting project workforce at the approved vendor or
5479	5479	15 designee level, as applicable, which shall include a
5480	5480	16 measurement methodology and records to be made
5481	5481	17 available for audit by the Agency or the Program
5482	5482	18 Administrator.
5483	5483	19 (C) A program for approved vendors, designees,
5484	5484	20 eligible persons, and equity eligible contractors to
5485	5485	21 receive trainings, guidance, and other support from
5486	5486	22 the Agency or its designee regarding the equity
5487	5487	23 category outlined in item (vi) of subparagraph (K) of
5488	5488	24 paragraph (1) of subsection (c) and in meeting the
5489	5489	25 minimum equity standards of this subsection (c-10).
5490	5490	26 (D) A process for certifying equity eligible
5491	5491
5492	5492
5493	5493
5494	5494
5495	5495
5496	5496	SB2497 - 152 - LRB104 12224 JDS 22330 b
5497	5497
5498	5498
5499	5499	SB2497- 153 -LRB104 12224 JDS 22330 b SB2497 - 153 - LRB104 12224 JDS 22330 b
5500	5500	SB2497 - 153 - LRB104 12224 JDS 22330 b
5501	5501	1 contractors and equity eligible persons. The
5502	5502	2 certification process shall coordinate with the Energy
5503	5503	3 Workforce Equity Database set forth in subsection
5504	5504	4 (c-25).
5505	5505	5 (E) An application for waiver of the minimum
5506	5506	6 equity standards of this subsection, which the Agency
5507	5507	7 shall have the discretion to grant in rare
5508	5508	8 circumstances. The Agency may grant such a waiver
5509	5509	9 where the applicant provides evidence of significant
5510	5510	10 efforts toward meeting the minimum equity commitment,
5511	5511	11 including: use of the Energy Workforce Equity
5512	5512	12 Database; efforts to hire or contract with entities
5513	5513	13 that hire eligible persons; and efforts to establish
5514	5514	14 contracting relationships with eligible contractors.
5515	5515	15 The Agency shall support applicants in understanding
5516	5516	16 the Energy Workforce Equity Database and other
5517	5517	17 resources for pursuing compliance of the minimum
5518	5518	18 equity standards. Waivers shall be project-specific,
5519	5519	19 unless the Agency deems it necessary to grant a waiver
5520	5520	20 across a portfolio of projects, and in effect for no
5521	5521	21 longer than one year. Any waiver extension or
5522	5522	22 subsequent waiver request from an applicant shall be
5523	5523	23 subject to the requirements of this Section and shall
5524	5524	24 specify efforts made to reach compliance. When
5525	5525	25 considering whether to grant a waiver, and to what
5526	5526	26 extent, the Agency shall consider the degree to which
5527	5527
5528	5528
5529	5529
5530	5530
5531	5531
5532	5532	SB2497 - 153 - LRB104 12224 JDS 22330 b
5533	5533
5534	5534
5535	5535	SB2497- 154 -LRB104 12224 JDS 22330 b SB2497 - 154 - LRB104 12224 JDS 22330 b
5536	5536	SB2497 - 154 - LRB104 12224 JDS 22330 b
5537	5537	1 similarly situated applicants have been able to meet
5538	5538	2 these minimum equity commitments. For repeated waiver
5539	5539	3 requests for specific lack of eligible persons or
5540	5540	4 eligible contractors available, the Agency shall make
5541	5541	5 recommendations to target recruitment to add such
5542	5542	6 eligible persons or eligible contractors to the
5543	5543	7 database.
5544	5544	8 (5) The Agency shall collect information about work on
5545	5545	9 projects or portfolios of projects subject to these
5546	5546	10 minimum equity standards to ensure compliance with this
5547	5547	11 subsection (c-10). Reporting in furtherance of this
5548	5548	12 requirement may be combined with other annual reporting
5549	5549	13 requirements. Such reporting shall include proof of
5550	5550	14 certification of each equity eligible contractor or equity
5551	5551	15 eligible person during the applicable time period.
5552	5552	16 (6) The Agency shall keep confidential all information
5553	5553	17 and communication that provides private or personal
5554	5554	18 information.
5555	5555	19 (7) Modifications to the equity accountability system.
5556	5556	20 As part of the update of the long-term renewable resources
5557	5557	21 procurement plan to be initiated in 2023, or sooner if the
5558	5558	22 Agency deems necessary, the Agency shall determine the
5559	5559	23 extent to which the equity accountability system described
5560	5560	24 in this subsection (c-10) has advanced the goals of this
5561	5561	25 amendatory Act of the 102nd General Assembly, including
5562	5562	26 through the inclusion of equity eligible persons and
5563	5563
5564	5564
5565	5565
5566	5566
5567	5567
5568	5568	SB2497 - 154 - LRB104 12224 JDS 22330 b
5569	5569
5570	5570
5571	5571	SB2497- 155 -LRB104 12224 JDS 22330 b SB2497 - 155 - LRB104 12224 JDS 22330 b
5572	5572	SB2497 - 155 - LRB104 12224 JDS 22330 b
5573	5573	1 equity eligible contractors in renewable energy credit
5574	5574	2 projects. If the Agency finds that the equity
5575	5575	3 accountability system has failed to meet those goals to
5576	5576	4 its fullest potential, the Agency may revise the following
5577	5577	5 criteria for future Agency procurements: (A) the
5578	5578	6 percentage of project workforce, or other appropriate
5579	5579	7 workforce measure, certified as equity eligible persons or
5580	5580	8 equity eligible contractors; (B) definitions for equity
5581	5581	9 investment eligible persons and equity investment eligible
5582	5582	10 community; and (C) such other modifications necessary to
5583	5583	11 advance the goals of this amendatory Act of the 102nd
5584	5584	12 General Assembly effectively. Such revised criteria may
5585	5585	13 also establish distinct equity accountability systems for
5586	5586	14 different types of procurements or different regions of
5587	5587	15 the State if the Agency finds that doing so will further
5588	5588	16 the purposes of such programs. Revisions shall be
5589	5589	17 developed with stakeholder input, including from equity
5590	5590	18 eligible persons, equity eligible contractors, and
5591	5591	19 community-based organizations that work with such persons
5592	5592	20 and contractors.
5593	5593	21 (c-15) Racial discrimination elimination powers and
5594	5594	22 process.
5595	5595	23 (1) Purpose. It is the purpose of this subsection to
5596	5596	24 empower the Agency and other State actors to remedy racial
5597	5597	25 discrimination in Illinois' clean energy economy as
5598	5598	26 effectively and expediently as possible, including through
5599	5599
5600	5600
5601	5601
5602	5602
5603	5603
5604	5604	SB2497 - 155 - LRB104 12224 JDS 22330 b
5605	5605
5606	5606
5607	5607	SB2497- 156 -LRB104 12224 JDS 22330 b SB2497 - 156 - LRB104 12224 JDS 22330 b
5608	5608	SB2497 - 156 - LRB104 12224 JDS 22330 b
5609	5609	1 the use of race-conscious remedies, such as race-conscious
5610	5610	2 contracting and hiring goals, as consistent with State and
5611	5611	3 federal law.
5612	5612	4 (2) Racial disparity and discrimination review
5613	5613	5 process.
5614	5614	6 (A) Within one year after awarding contracts using
5615	5615	7 the equity actions processes established in this
5616	5616	8 Section, the Agency shall publish a report evaluating
5617	5617	9 the effectiveness of the equity actions point criteria
5618	5618	10 of this Section in increasing participation of equity
5619	5619	11 eligible persons and equity eligible contractors. The
5620	5620	12 report shall disaggregate participating workers and
5621	5621	13 contractors by race and ethnicity. The report shall be
5622	5622	14 forwarded to the Governor, the General Assembly, and
5623	5623	15 the Illinois Commerce Commission and be made available
5624	5624	16 to the public.
5625	5625	17 (B) As soon as is practicable thereafter, the
5626	5626	18 Agency, in consultation with the Department of
5627	5627	19 Commerce and Economic Opportunity, Department of
5628	5628	20 Labor, and other agencies that may be relevant, shall
5629	5629	21 commission and publish a disparity and availability
5630	5630	22 study that measures the presence and impact of
5631	5631	23 discrimination on minority businesses and workers in
5632	5632	24 Illinois' clean energy economy. The Agency may hire
5633	5633	25 consultants and experts to conduct the disparity and
5634	5634	26 availability study, with the retention of those
5635	5635
5636	5636
5637	5637
5638	5638
5639	5639
5640	5640	SB2497 - 156 - LRB104 12224 JDS 22330 b
5641	5641
5642	5642
5643	5643	SB2497- 157 -LRB104 12224 JDS 22330 b SB2497 - 157 - LRB104 12224 JDS 22330 b
5644	5644	SB2497 - 157 - LRB104 12224 JDS 22330 b
5645	5645	1 consultants and experts exempt from the requirements
5646	5646	2 of Section 20-10 of the Illinois Procurement Code. The
5647	5647	3 Illinois Power Agency shall forward a copy of its
5648	5648	4 findings and recommendations to the Governor, the
5649	5649	5 General Assembly, and the Illinois Commerce
5650	5650	6 Commission. If the disparity and availability study
5651	5651	7 establishes a strong basis in evidence that there is
5652	5652	8 discrimination in Illinois' clean energy economy, the
5653	5653	9 Agency, Department of Commerce and Economic
5654	5654	10 Opportunity, Department of Labor, Department of
5655	5655	11 Corrections, and other appropriate agencies shall take
5656	5656	12 appropriate remedial actions, including race-conscious
5657	5657	13 remedial actions as consistent with State and federal
5658	5658	14 law, to effectively remedy this discrimination. Such
5659	5659	15 remedies may include modification of the equity
5660	5660	16 accountability system as described in subsection
5661	5661	17 (c-10).
5662	5662	18 (c-20) Program data collection.
5663	5663	19 (1) Purpose. Data collection, data analysis, and
5664	5664	20 reporting are critical to ensure that the benefits of the
5665	5665	21 clean energy economy provided to Illinois residents and
5666	5666	22 businesses are equitably distributed across the State. The
5667	5667	23 Agency shall collect data from program applicants in order
5668	5668	24 to track and improve equitable distribution of benefits
5669	5669	25 across Illinois communities for all procurements the
5670	5670	26 Agency conducts. The Agency shall use this data to, among
5671	5671
5672	5672
5673	5673
5674	5674
5675	5675
5676	5676	SB2497 - 157 - LRB104 12224 JDS 22330 b
5677	5677
5678	5678
5679	5679	SB2497- 158 -LRB104 12224 JDS 22330 b SB2497 - 158 - LRB104 12224 JDS 22330 b
5680	5680	SB2497 - 158 - LRB104 12224 JDS 22330 b
5681	5681	1 other things, measure any potential impact of racial
5682	5682	2 discrimination on the distribution of benefits and provide
5683	5683	3 information necessary to correct any discrimination
5684	5684	4 through methods consistent with State and federal law.
5685	5685	5 (2) Agency collection of program data. The Agency
5686	5686	6 shall collect demographic and geographic data for each
5687	5687	7 entity awarded contracts under any Agency-administered
5688	5688	8 program. The Agency shall collect this data on an annual
5689	5689	9 basis for all systems energized during the applicable
5690	5690	10 annual period, but shall allow entities awarded contracts
5691	5691	11 under any Agency-administered program to elect to report
5692	5692	12 data exclusively on a project-by-project basis.
5693	5693	13 (3) Required information to be collected. The Agency
5694	5694	14 shall collect the following information from applicants
5695	5695	15 and program participants where applicable:
5696	5696	16 (A) demographic information, including racial or
5697	5697	17 ethnic identity for real persons employed, contracted,
5698	5698	18 or subcontracted through the program and owners of
5699	5699	19 businesses or entities that apply to receive renewable
5700	5700	20 energy credits from the Agency;
5701	5701	21 (B) geographic location of the residency of real
5702	5702	22 persons employed, contracted, or subcontracted through
5703	5703	23 the program and geographic location of the
5704	5704	24 headquarters of the business or entity that applies to
5705	5705	25 receive renewable energy credits from the Agency; and
5706	5706	26 (C) any other information the Agency determines is
5707	5707
5708	5708
5709	5709
5710	5710
5711	5711
5712	5712	SB2497 - 158 - LRB104 12224 JDS 22330 b
5713	5713
5714	5714
5715	5715	SB2497- 159 -LRB104 12224 JDS 22330 b SB2497 - 159 - LRB104 12224 JDS 22330 b
5716	5716	SB2497 - 159 - LRB104 12224 JDS 22330 b
5717	5717	1 necessary for the purpose of achieving the purpose of
5718	5718	2 this subsection.
5719	5719	3 (4) Publication of collected information. The Agency
5720	5720	4 shall publish, at least annually, information on the
5721	5721	5 demographics of program participants on an aggregate
5722	5722	6 basis.
5723	5723	7 (5) Nothing in this subsection shall be interpreted to
5724	5724	8 limit the authority of the Agency, or other agency or
5725	5725	9 department of the State, to require or collect demographic
5726	5726	10 information from applicants of other State programs.
5727	5727	11 (c-25) Energy Workforce Equity Database.
5728	5728	12 (1) The Agency, in consultation with the Department of
5729	5729	13 Commerce and Economic Opportunity, shall create an Energy
5730	5730	14 Workforce Equity Database, and may contract with a third
5731	5731	15 party to do so ("database program administrator"). If the
5732	5732	16 Department decides to contract with a third party, that
5733	5733	17 third party shall be exempt from the requirements of
5734	5734	18 Section 20-10 of the Illinois Procurement Code. The Energy
5735	5735	19 Workforce Equity Database shall be a searchable database
5736	5736	20 of suppliers, vendors, and subcontractors for clean energy
5737	5737	21 industries that is:
5738	5738	22 (A) publicly accessible;
5739	5739	23 (B) easy for people to find and use;
5740	5740	24 (C) organized by company specialty or field;
5741	5741	25 (D) region-specific; and
5742	5742	26 (E) populated with information including, but not
5743	5743
5744	5744
5745	5745
5746	5746
5747	5747
5748	5748	SB2497 - 159 - LRB104 12224 JDS 22330 b
5749	5749
5750	5750
5751	5751	SB2497- 160 -LRB104 12224 JDS 22330 b SB2497 - 160 - LRB104 12224 JDS 22330 b
5752	5752	SB2497 - 160 - LRB104 12224 JDS 22330 b
5753	5753	1 limited to, contacts for suppliers, vendors, or
5754	5754	2 subcontractors who are minority and women-owned
5755	5755	3 business enterprise certified or who participate or
5756	5756	4 have participated in any of the programs described in
5757	5757	5 this Act.
5758	5758	6 (2) The Agency shall create an easily accessible,
5759	5759	7 public facing online tool using the database information
5760	5760	8 that includes, at a minimum, the following:
5761	5761	9 (A) a map of environmental justice and equity
5762	5762	10 investment eligible communities;
5763	5763	11 (B) job postings and recruiting opportunities;
5764	5764	12 (C) a means by which recruiting clean energy
5765	5765	13 companies can find and interact with current or former
5766	5766	14 participants of clean energy workforce training
5767	5767	15 programs;
5768	5768	16 (D) information on workforce training service
5769	5769	17 providers and training opportunities available to
5770	5770	18 prospective workers;
5771	5771	19 (E) renewable energy company diversity reporting;
5772	5772	20 (F) a list of equity eligible contractors with
5773	5773	21 their contact information, types of work performed,
5774	5774	22 and locations worked in;
5775	5775	23 (G) reporting on outcomes of the programs
5776	5776	24 described in the workforce programs of the Energy
5777	5777	25 Transition Act, including information such as, but not
5778	5778	26 limited to, retention rate, graduation rate, and
5779	5779
5780	5780
5781	5781
5782	5782
5783	5783
5784	5784	SB2497 - 160 - LRB104 12224 JDS 22330 b
5785	5785
5786	5786
5787	5787	SB2497- 161 -LRB104 12224 JDS 22330 b SB2497 - 161 - LRB104 12224 JDS 22330 b
5788	5788	SB2497 - 161 - LRB104 12224 JDS 22330 b
5789	5789	1 placement rates of trainees; and
5790	5790	2 (H) information about the Jobs and Environmental
5791	5791	3 Justice Grant Program, the Clean Energy Jobs and
5792	5792	4 Justice Fund, and other sources of capital.
5793	5793	5 (3) The Agency shall ensure the database is regularly
5794	5794	6 updated to ensure information is current and shall
5795	5795	7 coordinate with the Department of Commerce and Economic
5796	5796	8 Opportunity to ensure that it includes information on
5797	5797	9 individuals and entities that are or have participated in
5798	5798	10 the Clean Jobs Workforce Network Program, Clean Energy
5799	5799	11 Contractor Incubator Program, Returning Residents Clean
5800	5800	12 Jobs Training Program, or Clean Energy Primes Contractor
5801	5801	13 Accelerator Program.
5802	5802	14 (c-30) Enforcement of minimum equity standards. All
5803	5803	15 entities seeking renewable energy credits must submit an
5804	5804	16 annual report to demonstrate compliance with each of the
5805	5805	17 equity commitments required under subsection (c-10). If the
5806	5806	18 Agency concludes the entity has not met or maintained its
5807	5807	19 minimum equity standards required under the applicable
5808	5808	20 subparagraphs under subsection (c-10), the Agency shall deny
5809	5809	21 the entity's ability to participate in procurement programs in
5810	5810	22 subsection (c), including by withholding approved vendor or
5811	5811	23 designee status. The Agency may require the entity to enter
5812	5812	24 into a corrective action plan. An entity that is not
5813	5813	25 recertified for failing to meet required equity actions in
5814	5814	26 subparagraph (c-10) may reapply once they have a corrective
5815	5815
5816	5816
5817	5817
5818	5818
5819	5819
5820	5820	SB2497 - 161 - LRB104 12224 JDS 22330 b
5821	5821
5822	5822
5823	5823	SB2497- 162 -LRB104 12224 JDS 22330 b SB2497 - 162 - LRB104 12224 JDS 22330 b
5824	5824	SB2497 - 162 - LRB104 12224 JDS 22330 b
5825	5825	1 action plan and achieve compliance with the minimum equity
5826	5826	2 standards.
5827	5827	3 (d) Clean coal portfolio standard.
5828	5828	4 (1) The procurement plans shall include electricity
5829	5829	5 generated using clean coal. Each utility shall enter into
5830	5830	6 one or more sourcing agreements with the initial clean
5831	5831	7 coal facility, as provided in paragraph (3) of this
5832	5832	8 subsection (d), covering electricity generated by the
5833	5833	9 initial clean coal facility representing at least 5% of
5834	5834	10 each utility's total supply to serve the load of eligible
5835	5835	11 retail customers in 2015 and each year thereafter, as
5836	5836	12 described in paragraph (3) of this subsection (d), subject
5837	5837	13 to the limits specified in paragraph (2) of this
5838	5838	14 subsection (d). It is the goal of the State that by January
5839	5839	15 1, 2025, 25% of the electricity used in the State shall be
5840	5840	16 generated by cost-effective clean coal facilities. For
5841	5841	17 purposes of this subsection (d), "cost-effective" means
5842	5842	18 that the expenditures pursuant to such sourcing agreements
5843	5843	19 do not cause the limit stated in paragraph (2) of this
5844	5844	20 subsection (d) to be exceeded and do not exceed cost-based
5845	5845	21 benchmarks, which shall be developed to assess all
5846	5846	22 expenditures pursuant to such sourcing agreements covering
5847	5847	23 electricity generated by clean coal facilities, other than
5848	5848	24 the initial clean coal facility, by the procurement
5849	5849	25 administrator, in consultation with the Commission staff,
5850	5850	26 Agency staff, and the procurement monitor and shall be
5851	5851
5852	5852
5853	5853
5854	5854
5855	5855
5856	5856	SB2497 - 162 - LRB104 12224 JDS 22330 b
5857	5857
5858	5858
5859	5859	SB2497- 163 -LRB104 12224 JDS 22330 b SB2497 - 163 - LRB104 12224 JDS 22330 b
5860	5860	SB2497 - 163 - LRB104 12224 JDS 22330 b
5861	5861	1 subject to Commission review and approval.
5862	5862	2 A utility party to a sourcing agreement shall
5863	5863	3 immediately retire any emission credits that it receives
5864	5864	4 in connection with the electricity covered by such
5865	5865	5 agreement.
5866	5866	6 Utilities shall maintain adequate records documenting
5867	5867	7 the purchases under the sourcing agreement to comply with
5868	5868	8 this subsection (d) and shall file an accounting with the
5869	5869	9 load forecast that must be filed with the Agency by July 15
5870	5870	10 of each year, in accordance with subsection (d) of Section
5871	5871	11 16-111.5 of the Public Utilities Act.
5872	5872	12 A utility shall be deemed to have complied with the
5873	5873	13 clean coal portfolio standard specified in this subsection
5874	5874	14 (d) if the utility enters into a sourcing agreement as
5875	5875	15 required by this subsection (d).
5876	5876	16 (2) For purposes of this subsection (d), the required
5877	5877	17 execution of sourcing agreements with the initial clean
5878	5878	18 coal facility for a particular year shall be measured as a
5879	5879	19 percentage of the actual amount of electricity
5880	5880	20 (megawatt-hours) supplied by the electric utility to
5881	5881	21 eligible retail customers in the planning year ending
5882	5882	22 immediately prior to the agreement's execution. For
5883	5883	23 purposes of this subsection (d), the amount paid per
5884	5884	24 kilowatthour means the total amount paid for electric
5885	5885	25 service expressed on a per kilowatthour basis. For
5886	5886	26 purposes of this subsection (d), the total amount paid for
5887	5887
5888	5888
5889	5889
5890	5890
5891	5891
5892	5892	SB2497 - 163 - LRB104 12224 JDS 22330 b
5893	5893
5894	5894
5895	5895	SB2497- 164 -LRB104 12224 JDS 22330 b SB2497 - 164 - LRB104 12224 JDS 22330 b
5896	5896	SB2497 - 164 - LRB104 12224 JDS 22330 b
5897	5897	1 electric service includes without limitation amounts paid
5898	5898	2 for supply, transmission, distribution, surcharges and
5899	5899	3 add-on taxes.
5900	5900	4 Notwithstanding the requirements of this subsection
5901	5901	5 (d), the total amount paid under sourcing agreements with
5902	5902	6 clean coal facilities pursuant to the procurement plan for
5903	5903	7 any given year shall be reduced by an amount necessary to
5904	5904	8 limit the annual estimated average net increase due to the
5905	5905	9 costs of these resources included in the amounts paid by
5906	5906	10 eligible retail customers in connection with electric
5907	5907	11 service to:
5908	5908	12 (A) in 2010, no more than 0.5% of the amount paid
5909	5909	13 per kilowatthour by those customers during the year
5910	5910	14 ending May 31, 2009;
5911	5911	15 (B) in 2011, the greater of an additional 0.5% of
5912	5912	16 the amount paid per kilowatthour by those customers
5913	5913	17 during the year ending May 31, 2010 or 1% of the amount
5914	5914	18 paid per kilowatthour by those customers during the
5915	5915	19 year ending May 31, 2009;
5916	5916	20 (C) in 2012, the greater of an additional 0.5% of
5917	5917	21 the amount paid per kilowatthour by those customers
5918	5918	22 during the year ending May 31, 2011 or 1.5% of the
5919	5919	23 amount paid per kilowatthour by those customers during
5920	5920	24 the year ending May 31, 2009;
5921	5921	25 (D) in 2013, the greater of an additional 0.5% of
5922	5922	26 the amount paid per kilowatthour by those customers
5923	5923
5924	5924
5925	5925
5926	5926
5927	5927
5928	5928	SB2497 - 164 - LRB104 12224 JDS 22330 b
5929	5929
5930	5930
5931	5931	SB2497- 165 -LRB104 12224 JDS 22330 b SB2497 - 165 - LRB104 12224 JDS 22330 b
5932	5932	SB2497 - 165 - LRB104 12224 JDS 22330 b
5933	5933	1 during the year ending May 31, 2012 or 2% of the amount
5934	5934	2 paid per kilowatthour by those customers during the
5935	5935	3 year ending May 31, 2009; and
5936	5936	4 (E) thereafter, the total amount paid under
5937	5937	5 sourcing agreements with clean coal facilities
5938	5938	6 pursuant to the procurement plan for any single year
5939	5939	7 shall be reduced by an amount necessary to limit the
5940	5940	8 estimated average net increase due to the cost of
5941	5941	9 these resources included in the amounts paid by
5942	5942	10 eligible retail customers in connection with electric
5943	5943	11 service to no more than the greater of (i) 2.015% of
5944	5944	12 the amount paid per kilowatthour by those customers
5945	5945	13 during the year ending May 31, 2009 or (ii) the
5946	5946	14 incremental amount per kilowatthour paid for these
5947	5947	15 resources in 2013. These requirements may be altered
5948	5948	16 only as provided by statute.
5949	5949	17 No later than June 30, 2015, the Commission shall
5950	5950	18 review the limitation on the total amount paid under
5951	5951	19 sourcing agreements, if any, with clean coal facilities
5952	5952	20 pursuant to this subsection (d) and report to the General
5953	5953	21 Assembly its findings as to whether that limitation unduly
5954	5954	22 constrains the amount of electricity generated by
5955	5955	23 cost-effective clean coal facilities that is covered by
5956	5956	24 sourcing agreements.
5957	5957	25 (3) Initial clean coal facility. In order to promote
5958	5958	26 development of clean coal facilities in Illinois, each
5959	5959
5960	5960
5961	5961
5962	5962
5963	5963
5964	5964	SB2497 - 165 - LRB104 12224 JDS 22330 b
5965	5965
5966	5966
5967	5967	SB2497- 166 -LRB104 12224 JDS 22330 b SB2497 - 166 - LRB104 12224 JDS 22330 b
5968	5968	SB2497 - 166 - LRB104 12224 JDS 22330 b
5969	5969	1 electric utility subject to this Section shall execute a
5970	5970	2 sourcing agreement to source electricity from a proposed
5971	5971	3 clean coal facility in Illinois (the "initial clean coal
5972	5972	4 facility") that will have a nameplate capacity of at least
5973	5973	5 500 MW when commercial operation commences, that has a
5974	5974	6 final Clean Air Act permit on June 1, 2009 (the effective
5975	5975	7 date of Public Act 95-1027), and that will meet the
5976	5976	8 definition of clean coal facility in Section 1-10 of this
5977	5977	9 Act when commercial operation commences. The sourcing
5978	5978	10 agreements with this initial clean coal facility shall be
5979	5979	11 subject to both approval of the initial clean coal
5980	5980	12 facility by the General Assembly and satisfaction of the
5981	5981	13 requirements of paragraph (4) of this subsection (d) and
5982	5982	14 shall be executed within 90 days after any such approval
5983	5983	15 by the General Assembly. The Agency and the Commission
5984	5984	16 shall have authority to inspect all books and records
5985	5985	17 associated with the initial clean coal facility during the
5986	5986	18 term of such a sourcing agreement. A utility's sourcing
5987	5987	19 agreement for electricity produced by the initial clean
5988	5988	20 coal facility shall include:
5989	5989	21 (A) a formula contractual price (the "contract
5990	5990	22 price") approved pursuant to paragraph (4) of this
5991	5991	23 subsection (d), which shall:
5992	5992	24 (i) be determined using a cost of service
5993	5993	25 methodology employing either a level or deferred
5994	5994	26 capital recovery component, based on a capital
5995	5995
5996	5996
5997	5997
5998	5998
5999	5999
6000	6000	SB2497 - 166 - LRB104 12224 JDS 22330 b
6001	6001
6002	6002
6003	6003	SB2497- 167 -LRB104 12224 JDS 22330 b SB2497 - 167 - LRB104 12224 JDS 22330 b
6004	6004	SB2497 - 167 - LRB104 12224 JDS 22330 b
6005	6005	1 structure consisting of 45% equity and 55% debt,
6006	6006	2 and a return on equity as may be approved by the
6007	6007	3 Federal Energy Regulatory Commission, which in any
6008	6008	4 case may not exceed the lower of 11.5% or the rate
6009	6009	5 of return approved by the General Assembly
6010	6010	6 pursuant to paragraph (4) of this subsection (d);
6011	6011	7 and
6012	6012	8 (ii) provide that all miscellaneous net
6013	6013	9 revenue, including but not limited to net revenue
6014	6014	10 from the sale of emission allowances, if any,
6015	6015	11 substitute natural gas, if any, grants or other
6016	6016	12 support provided by the State of Illinois or the
6017	6017	13 United States Government, firm transmission
6018	6018	14 rights, if any, by-products produced by the
6019	6019	15 facility, energy or capacity derived from the
6020	6020	16 facility and not covered by a sourcing agreement
6021	6021	17 pursuant to paragraph (3) of this subsection (d)
6022	6022	18 or item (5) of subsection (d) of Section 16-115 of
6023	6023	19 the Public Utilities Act, whether generated from
6024	6024	20 the synthesis gas derived from coal, from SNG, or
6025	6025	21 from natural gas, shall be credited against the
6026	6026	22 revenue requirement for this initial clean coal
6027	6027	23 facility;
6028	6028	24 (B) power purchase provisions, which shall:
6029	6029	25 (i) provide that the utility party to such
6030	6030	26 sourcing agreement shall pay the contract price
6031	6031
6032	6032
6033	6033
6034	6034
6035	6035
6036	6036	SB2497 - 167 - LRB104 12224 JDS 22330 b
6037	6037
6038	6038
6039	6039	SB2497- 168 -LRB104 12224 JDS 22330 b SB2497 - 168 - LRB104 12224 JDS 22330 b
6040	6040	SB2497 - 168 - LRB104 12224 JDS 22330 b
6041	6041	1 for electricity delivered under such sourcing
6042	6042	2 agreement;
6043	6043	3 (ii) require delivery of electricity to the
6044	6044	4 regional transmission organization market of the
6045	6045	5 utility that is party to such sourcing agreement;
6046	6046	6 (iii) require the utility party to such
6047	6047	7 sourcing agreement to buy from the initial clean
6048	6048	8 coal facility in each hour an amount of energy
6049	6049	9 equal to all clean coal energy made available from
6050	6050	10 the initial clean coal facility during such hour
6051	6051	11 times a fraction, the numerator of which is such
6052	6052	12 utility's retail market sales of electricity
6053	6053	13 (expressed in kilowatthours sold) in the State
6054	6054	14 during the prior calendar month and the
6055	6055	15 denominator of which is the total retail market
6056	6056	16 sales of electricity (expressed in kilowatthours
6057	6057	17 sold) in the State by utilities during such prior
6058	6058	18 month and the sales of electricity (expressed in
6059	6059	19 kilowatthours sold) in the State by alternative
6060	6060	20 retail electric suppliers during such prior month
6061	6061	21 that are subject to the requirements of this
6062	6062	22 subsection (d) and paragraph (5) of subsection (d)
6063	6063	23 of Section 16-115 of the Public Utilities Act,
6064	6064	24 provided that the amount purchased by the utility
6065	6065	25 in any year will be limited by paragraph (2) of
6066	6066	26 this subsection (d); and
6067	6067
6068	6068
6069	6069
6070	6070
6071	6071
6072	6072	SB2497 - 168 - LRB104 12224 JDS 22330 b
6073	6073
6074	6074
6075	6075	SB2497- 169 -LRB104 12224 JDS 22330 b SB2497 - 169 - LRB104 12224 JDS 22330 b
6076	6076	SB2497 - 169 - LRB104 12224 JDS 22330 b
6077	6077	1 (iv) be considered pre-existing contracts in
6078	6078	2 such utility's procurement plans for eligible
6079	6079	3 retail customers;
6080	6080	4 (C) contract for differences provisions, which
6081	6081	5 shall:
6082	6082	6 (i) require the utility party to such sourcing
6083	6083	7 agreement to contract with the initial clean coal
6084	6084	8 facility in each hour with respect to an amount of
6085	6085	9 energy equal to all clean coal energy made
6086	6086	10 available from the initial clean coal facility
6087	6087	11 during such hour times a fraction, the numerator
6088	6088	12 of which is such utility's retail market sales of
6089	6089	13 electricity (expressed in kilowatthours sold) in
6090	6090	14 the utility's service territory in the State
6091	6091	15 during the prior calendar month and the
6092	6092	16 denominator of which is the total retail market
6093	6093	17 sales of electricity (expressed in kilowatthours
6094	6094	18 sold) in the State by utilities during such prior
6095	6095	19 month and the sales of electricity (expressed in
6096	6096	20 kilowatthours sold) in the State by alternative
6097	6097	21 retail electric suppliers during such prior month
6098	6098	22 that are subject to the requirements of this
6099	6099	23 subsection (d) and paragraph (5) of subsection (d)
6100	6100	24 of Section 16-115 of the Public Utilities Act,
6101	6101	25 provided that the amount paid by the utility in
6102	6102	26 any year will be limited by paragraph (2) of this
6103	6103
6104	6104
6105	6105
6106	6106
6107	6107
6108	6108	SB2497 - 169 - LRB104 12224 JDS 22330 b
6109	6109
6110	6110
6111	6111	SB2497- 170 -LRB104 12224 JDS 22330 b SB2497 - 170 - LRB104 12224 JDS 22330 b
6112	6112	SB2497 - 170 - LRB104 12224 JDS 22330 b
6113	6113	1 subsection (d);
6114	6114	2 (ii) provide that the utility's payment
6115	6115	3 obligation in respect of the quantity of
6116	6116	4 electricity determined pursuant to the preceding
6117	6117	5 clause (i) shall be limited to an amount equal to
6118	6118	6 (1) the difference between the contract price
6119	6119	7 determined pursuant to subparagraph (A) of
6120	6120	8 paragraph (3) of this subsection (d) and the
6121	6121	9 day-ahead price for electricity delivered to the
6122	6122	10 regional transmission organization market of the
6123	6123	11 utility that is party to such sourcing agreement
6124	6124	12 (or any successor delivery point at which such
6125	6125	13 utility's supply obligations are financially
6126	6126	14 settled on an hourly basis) (the "reference
6127	6127	15 price") on the day preceding the day on which the
6128	6128	16 electricity is delivered to the initial clean coal
6129	6129	17 facility busbar, multiplied by (2) the quantity of
6130	6130	18 electricity determined pursuant to the preceding
6131	6131	19 clause (i); and
6132	6132	20 (iii) not require the utility to take physical
6133	6133	21 delivery of the electricity produced by the
6134	6134	22 facility;
6135	6135	23 (D) general provisions, which shall:
6136	6136	24 (i) specify a term of no more than 30 years,
6137	6137	25 commencing on the commercial operation date of the
6138	6138	26 facility;
6139	6139
6140	6140
6141	6141
6142	6142
6143	6143
6144	6144	SB2497 - 170 - LRB104 12224 JDS 22330 b
6145	6145
6146	6146
6147	6147	SB2497- 171 -LRB104 12224 JDS 22330 b SB2497 - 171 - LRB104 12224 JDS 22330 b
6148	6148	SB2497 - 171 - LRB104 12224 JDS 22330 b
6149	6149	1 (ii) provide that utilities shall maintain
6150	6150	2 adequate records documenting purchases under the
6151	6151	3 sourcing agreements entered into to comply with
6152	6152	4 this subsection (d) and shall file an accounting
6153	6153	5 with the load forecast that must be filed with the
6154	6154	6 Agency by July 15 of each year, in accordance with
6155	6155	7 subsection (d) of Section 16-111.5 of the Public
6156	6156	8 Utilities Act;
6157	6157	9 (iii) provide that all costs associated with
6158	6158	10 the initial clean coal facility will be
6159	6159	11 periodically reported to the Federal Energy
6160	6160	12 Regulatory Commission and to purchasers in
6161	6161	13 accordance with applicable laws governing
6162	6162	14 cost-based wholesale power contracts;
6163	6163	15 (iv) permit the Illinois Power Agency to
6164	6164	16 assume ownership of the initial clean coal
6165	6165	17 facility, without monetary consideration and
6166	6166	18 otherwise on reasonable terms acceptable to the
6167	6167	19 Agency, if the Agency so requests no less than 3
6168	6168	20 years prior to the end of the stated contract
6169	6169	21 term;
6170	6170	22 (v) require the owner of the initial clean
6171	6171	23 coal facility to provide documentation to the
6172	6172	24 Commission each year, starting in the facility's
6173	6173	25 first year of commercial operation, accurately
6174	6174	26 reporting the quantity of carbon emissions from
6175	6175
6176	6176
6177	6177
6178	6178
6179	6179
6180	6180	SB2497 - 171 - LRB104 12224 JDS 22330 b
6181	6181
6182	6182
6183	6183	SB2497- 172 -LRB104 12224 JDS 22330 b SB2497 - 172 - LRB104 12224 JDS 22330 b
6184	6184	SB2497 - 172 - LRB104 12224 JDS 22330 b
6185	6185	1 the facility that have been captured and
6186	6186	2 sequestered and report any quantities of carbon
6187	6187	3 released from the site or sites at which carbon
6188	6188	4 emissions were sequestered in prior years, based
6189	6189	5 on continuous monitoring of such sites. If, in any
6190	6190	6 year after the first year of commercial operation,
6191	6191	7 the owner of the facility fails to demonstrate
6192	6192	8 that the initial clean coal facility captured and
6193	6193	9 sequestered at least 50% of the total carbon
6194	6194	10 emissions that the facility would otherwise emit
6195	6195	11 or that sequestration of emissions from prior
6196	6196	12 years has failed, resulting in the release of
6197	6197	13 carbon dioxide into the atmosphere, the owner of
6198	6198	14 the facility must offset excess emissions. Any
6199	6199	15 such carbon offsets must be permanent, additional,
6200	6200	16 verifiable, real, located within the State of
6201	6201	17 Illinois, and legally and practicably enforceable.
6202	6202	18 The cost of such offsets for the facility that are
6203	6203	19 not recoverable shall not exceed $15 million in
6204	6204	20 any given year. No costs of any such purchases of
6205	6205	21 carbon offsets may be recovered from a utility or
6206	6206	22 its customers. All carbon offsets purchased for
6207	6207	23 this purpose and any carbon emission credits
6208	6208	24 associated with sequestration of carbon from the
6209	6209	25 facility must be permanently retired. The initial
6210	6210	26 clean coal facility shall not forfeit its
6211	6211
6212	6212
6213	6213
6214	6214
6215	6215
6216	6216	SB2497 - 172 - LRB104 12224 JDS 22330 b
6217	6217
6218	6218
6219	6219	SB2497- 173 -LRB104 12224 JDS 22330 b SB2497 - 173 - LRB104 12224 JDS 22330 b
6220	6220	SB2497 - 173 - LRB104 12224 JDS 22330 b
6221	6221	1 designation as a clean coal facility if the
6222	6222	2 facility fails to fully comply with the applicable
6223	6223	3 carbon sequestration requirements in any given
6224	6224	4 year, provided the requisite offsets are
6225	6225	5 purchased. However, the Attorney General, on
6226	6226	6 behalf of the People of the State of Illinois, may
6227	6227	7 specifically enforce the facility's sequestration
6228	6228	8 requirement and the other terms of this contract
6229	6229	9 provision. Compliance with the sequestration
6230	6230	10 requirements and offset purchase requirements
6231	6231	11 specified in paragraph (3) of this subsection (d)
6232	6232	12 shall be reviewed annually by an independent
6233	6233	13 expert retained by the owner of the initial clean
6234	6234	14 coal facility, with the advance written approval
6235	6235	15 of the Attorney General. The Commission may, in
6236	6236	16 the course of the review specified in item (vii),
6237	6237	17 reduce the allowable return on equity for the
6238	6238	18 facility if the facility willfully fails to comply
6239	6239	19 with the carbon capture and sequestration
6240	6240	20 requirements set forth in this item (v);
6241	6241	21 (vi) include limits on, and accordingly
6242	6242	22 provide for modification of, the amount the
6243	6243	23 utility is required to source under the sourcing
6244	6244	24 agreement consistent with paragraph (2) of this
6245	6245	25 subsection (d);
6246	6246	26 (vii) require Commission review: (1) to
6247	6247
6248	6248
6249	6249
6250	6250
6251	6251
6252	6252	SB2497 - 173 - LRB104 12224 JDS 22330 b
6253	6253
6254	6254
6255	6255	SB2497- 174 -LRB104 12224 JDS 22330 b SB2497 - 174 - LRB104 12224 JDS 22330 b
6256	6256	SB2497 - 174 - LRB104 12224 JDS 22330 b
6257	6257	1 determine the justness, reasonableness, and
6258	6258	2 prudence of the inputs to the formula referenced
6259	6259	3 in subparagraphs (A)(i) through (A)(iii) of
6260	6260	4 paragraph (3) of this subsection (d), prior to an
6261	6261	5 adjustment in those inputs including, without
6262	6262	6 limitation, the capital structure and return on
6263	6263	7 equity, fuel costs, and other operations and
6264	6264	8 maintenance costs and (2) to approve the costs to
6265	6265	9 be passed through to customers under the sourcing
6266	6266	10 agreement by which the utility satisfies its
6267	6267	11 statutory obligations. Commission review shall
6268	6268	12 occur no less than every 3 years, regardless of
6269	6269	13 whether any adjustments have been proposed, and
6270	6270	14 shall be completed within 9 months;
6271	6271	15 (viii) limit the utility's obligation to such
6272	6272	16 amount as the utility is allowed to recover
6273	6273	17 through tariffs filed with the Commission,
6274	6274	18 provided that neither the clean coal facility nor
6275	6275	19 the utility waives any right to assert federal
6276	6276	20 pre-emption or any other argument in response to a
6277	6277	21 purported disallowance of recovery costs;
6278	6278	22 (ix) limit the utility's or alternative retail
6279	6279	23 electric supplier's obligation to incur any
6280	6280	24 liability until such time as the facility is in
6281	6281	25 commercial operation and generating power and
6282	6282	26 energy and such power and energy is being
6283	6283
6284	6284
6285	6285
6286	6286
6287	6287
6288	6288	SB2497 - 174 - LRB104 12224 JDS 22330 b
6289	6289
6290	6290
6291	6291	SB2497- 175 -LRB104 12224 JDS 22330 b SB2497 - 175 - LRB104 12224 JDS 22330 b
6292	6292	SB2497 - 175 - LRB104 12224 JDS 22330 b
6293	6293	1 delivered to the facility busbar;
6294	6294	2 (x) provide that the owner or owners of the
6295	6295	3 initial clean coal facility, which is the
6296	6296	4 counterparty to such sourcing agreement, shall
6297	6297	5 have the right from time to time to elect whether
6298	6298	6 the obligations of the utility party thereto shall
6299	6299	7 be governed by the power purchase provisions or
6300	6300	8 the contract for differences provisions;
6301	6301	9 (xi) append documentation showing that the
6302	6302	10 formula rate and contract, insofar as they relate
6303	6303	11 to the power purchase provisions, have been
6304	6304	12 approved by the Federal Energy Regulatory
6305	6305	13 Commission pursuant to Section 205 of the Federal
6306	6306	14 Power Act;
6307	6307	15 (xii) provide that any changes to the terms of
6308	6308	16 the contract, insofar as such changes relate to
6309	6309	17 the power purchase provisions, are subject to
6310	6310	18 review under the public interest standard applied
6311	6311	19 by the Federal Energy Regulatory Commission
6312	6312	20 pursuant to Sections 205 and 206 of the Federal
6313	6313	21 Power Act; and
6314	6314	22 (xiii) conform with customary lender
6315	6315	23 requirements in power purchase agreements used as
6316	6316	24 the basis for financing non-utility generators.
6317	6317	25 (4) Effective date of sourcing agreements with the
6318	6318	26 initial clean coal facility. Any proposed sourcing
6319	6319
6320	6320
6321	6321
6322	6322
6323	6323
6324	6324	SB2497 - 175 - LRB104 12224 JDS 22330 b
6325	6325
6326	6326
6327	6327	SB2497- 176 -LRB104 12224 JDS 22330 b SB2497 - 176 - LRB104 12224 JDS 22330 b
6328	6328	SB2497 - 176 - LRB104 12224 JDS 22330 b
6329	6329	1 agreement with the initial clean coal facility shall not
6330	6330	2 become effective unless the following reports are prepared
6331	6331	3 and submitted and authorizations and approvals obtained:
6332	6332	4 (i) Facility cost report. The owner of the initial
6333	6333	5 clean coal facility shall submit to the Commission,
6334	6334	6 the Agency, and the General Assembly a front-end
6335	6335	7 engineering and design study, a facility cost report,
6336	6336	8 method of financing (including but not limited to
6337	6337	9 structure and associated costs), and an operating and
6338	6338	10 maintenance cost quote for the facility (collectively
6339	6339	11 "facility cost report"), which shall be prepared in
6340	6340	12 accordance with the requirements of this paragraph (4)
6341	6341	13 of subsection (d) of this Section, and shall provide
6342	6342	14 the Commission and the Agency access to the work
6343	6343	15 papers, relied upon documents, and any other backup
6344	6344	16 documentation related to the facility cost report.
6345	6345	17 (ii) Commission report. Within 6 months following
6346	6346	18 receipt of the facility cost report, the Commission,
6347	6347	19 in consultation with the Agency, shall submit a report
6348	6348	20 to the General Assembly setting forth its analysis of
6349	6349	21 the facility cost report. Such report shall include,
6350	6350	22 but not be limited to, a comparison of the costs
6351	6351	23 associated with electricity generated by the initial
6352	6352	24 clean coal facility to the costs associated with
6353	6353	25 electricity generated by other types of generation
6354	6354	26 facilities, an analysis of the rate impacts on
6355	6355
6356	6356
6357	6357
6358	6358
6359	6359
6360	6360	SB2497 - 176 - LRB104 12224 JDS 22330 b
6361	6361
6362	6362
6363	6363	SB2497- 177 -LRB104 12224 JDS 22330 b SB2497 - 177 - LRB104 12224 JDS 22330 b
6364	6364	SB2497 - 177 - LRB104 12224 JDS 22330 b
6365	6365	1 residential and small business customers over the life
6366	6366	2 of the sourcing agreements, and an analysis of the
6367	6367	3 likelihood that the initial clean coal facility will
6368	6368	4 commence commercial operation by and be delivering
6369	6369	5 power to the facility's busbar by 2016. To assist in
6370	6370	6 the preparation of its report, the Commission, in
6371	6371	7 consultation with the Agency, may hire one or more
6372	6372	8 experts or consultants, the costs of which shall be
6373	6373	9 paid for by the owner of the initial clean coal
6374	6374	10 facility. The Commission and Agency may begin the
6375	6375	11 process of selecting such experts or consultants prior
6376	6376	12 to receipt of the facility cost report.
6377	6377	13 (iii) General Assembly approval. The proposed
6378	6378	14 sourcing agreements shall not take effect unless,
6379	6379	15 based on the facility cost report and the Commission's
6380	6380	16 report, the General Assembly enacts authorizing
6381	6381	17 legislation approving (A) the projected price, stated
6382	6382	18 in cents per kilowatthour, to be charged for
6383	6383	19 electricity generated by the initial clean coal
6384	6384	20 facility, (B) the projected impact on residential and
6385	6385	21 small business customers' bills over the life of the
6386	6386	22 sourcing agreements, and (C) the maximum allowable
6387	6387	23 return on equity for the project; and
6388	6388	24 (iv) Commission review. If the General Assembly
6389	6389	25 enacts authorizing legislation pursuant to
6390	6390	26 subparagraph (iii) approving a sourcing agreement, the
6391	6391
6392	6392
6393	6393
6394	6394
6395	6395
6396	6396	SB2497 - 177 - LRB104 12224 JDS 22330 b
6397	6397
6398	6398
6399	6399	SB2497- 178 -LRB104 12224 JDS 22330 b SB2497 - 178 - LRB104 12224 JDS 22330 b
6400	6400	SB2497 - 178 - LRB104 12224 JDS 22330 b
6401	6401	1 Commission shall, within 90 days of such enactment,
6402	6402	2 complete a review of such sourcing agreement. During
6403	6403	3 such time period, the Commission shall implement any
6404	6404	4 directive of the General Assembly, resolve any
6405	6405	5 disputes between the parties to the sourcing agreement
6406	6406	6 concerning the terms of such agreement, approve the
6407	6407	7 form of such agreement, and issue an order finding
6408	6408	8 that the sourcing agreement is prudent and reasonable.
6409	6409	9 The facility cost report shall be prepared as follows:
6410	6410	10 (A) The facility cost report shall be prepared by
6411	6411	11 duly licensed engineering and construction firms
6412	6412	12 detailing the estimated capital costs payable to one
6413	6413	13 or more contractors or suppliers for the engineering,
6414	6414	14 procurement and construction of the components
6415	6415	15 comprising the initial clean coal facility and the
6416	6416	16 estimated costs of operation and maintenance of the
6417	6417	17 facility. The facility cost report shall include:
6418	6418	18 (i) an estimate of the capital cost of the
6419	6419	19 core plant based on one or more front end
6420	6420	20 engineering and design studies for the
6421	6421	21 gasification island and related facilities. The
6422	6422	22 core plant shall include all civil, structural,
6423	6423	23 mechanical, electrical, control, and safety
6424	6424	24 systems.
6425	6425	25 (ii) an estimate of the capital cost of the
6426	6426	26 balance of the plant, including any capital costs
6427	6427
6428	6428
6429	6429
6430	6430
6431	6431
6432	6432	SB2497 - 178 - LRB104 12224 JDS 22330 b
6433	6433
6434	6434
6435	6435	SB2497- 179 -LRB104 12224 JDS 22330 b SB2497 - 179 - LRB104 12224 JDS 22330 b
6436	6436	SB2497 - 179 - LRB104 12224 JDS 22330 b
6437	6437	1 associated with sequestration of carbon dioxide
6438	6438	2 emissions and all interconnects and interfaces
6439	6439	3 required to operate the facility, such as
6440	6440	4 transmission of electricity, construction or
6441	6441	5 backfeed power supply, pipelines to transport
6442	6442	6 substitute natural gas or carbon dioxide, potable
6443	6443	7 water supply, natural gas supply, water supply,
6444	6444	8 water discharge, landfill, access roads, and coal
6445	6445	9 delivery.
6446	6446	10 The quoted construction costs shall be expressed
6447	6447	11 in nominal dollars as of the date that the quote is
6448	6448	12 prepared and shall include capitalized financing costs
6449	6449	13 during construction, taxes, insurance, and other
6450	6450	14 owner's costs, and an assumed escalation in materials
6451	6451	15 and labor beyond the date as of which the construction
6452	6452	16 cost quote is expressed.
6453	6453	17 (B) The front end engineering and design study for
6454	6454	18 the gasification island and the cost study for the
6455	6455	19 balance of plant shall include sufficient design work
6456	6456	20 to permit quantification of major categories of
6457	6457	21 materials, commodities and labor hours, and receipt of
6458	6458	22 quotes from vendors of major equipment required to
6459	6459	23 construct and operate the clean coal facility.
6460	6460	24 (C) The facility cost report shall also include an
6461	6461	25 operating and maintenance cost quote that will provide
6462	6462	26 the estimated cost of delivered fuel, personnel,
6463	6463
6464	6464
6465	6465
6466	6466
6467	6467
6468	6468	SB2497 - 179 - LRB104 12224 JDS 22330 b
6469	6469
6470	6470
6471	6471	SB2497- 180 -LRB104 12224 JDS 22330 b SB2497 - 180 - LRB104 12224 JDS 22330 b
6472	6472	SB2497 - 180 - LRB104 12224 JDS 22330 b
6473	6473	1 maintenance contracts, chemicals, catalysts,
6474	6474	2 consumables, spares, and other fixed and variable
6475	6475	3 operations and maintenance costs. The delivered fuel
6476	6476	4 cost estimate will be provided by a recognized third
6477	6477	5 party expert or experts in the fuel and transportation
6478	6478	6 industries. The balance of the operating and
6479	6479	7 maintenance cost quote, excluding delivered fuel
6480	6480	8 costs, will be developed based on the inputs provided
6481	6481	9 by duly licensed engineering and construction firms
6482	6482	10 performing the construction cost quote, potential
6483	6483	11 vendors under long-term service agreements and plant
6484	6484	12 operating agreements, or recognized third party plant
6485	6485	13 operator or operators.
6486	6486	14 The operating and maintenance cost quote
6487	6487	15 (including the cost of the front end engineering and
6488	6488	16 design study) shall be expressed in nominal dollars as
6489	6489	17 of the date that the quote is prepared and shall
6490	6490	18 include taxes, insurance, and other owner's costs, and
6491	6491	19 an assumed escalation in materials and labor beyond
6492	6492	20 the date as of which the operating and maintenance
6493	6493	21 cost quote is expressed.
6494	6494	22 (D) The facility cost report shall also include an
6495	6495	23 analysis of the initial clean coal facility's ability
6496	6496	24 to deliver power and energy into the applicable
6497	6497	25 regional transmission organization markets and an
6498	6498	26 analysis of the expected capacity factor for the
6499	6499
6500	6500
6501	6501
6502	6502
6503	6503
6504	6504	SB2497 - 180 - LRB104 12224 JDS 22330 b
6505	6505
6506	6506
6507	6507	SB2497- 181 -LRB104 12224 JDS 22330 b SB2497 - 181 - LRB104 12224 JDS 22330 b
6508	6508	SB2497 - 181 - LRB104 12224 JDS 22330 b
6509	6509	1 initial clean coal facility.
6510	6510	2 (E) Amounts paid to third parties unrelated to the
6511	6511	3 owner or owners of the initial clean coal facility to
6512	6512	4 prepare the core plant construction cost quote,
6513	6513	5 including the front end engineering and design study,
6514	6514	6 and the operating and maintenance cost quote will be
6515	6515	7 reimbursed through Coal Development Bonds.
6516	6516	8 (5) Re-powering and retrofitting coal-fired power
6517	6517	9 plants previously owned by Illinois utilities to qualify
6518	6518	10 as clean coal facilities. During the 2009 procurement
6519	6519	11 planning process and thereafter, the Agency and the
6520	6520	12 Commission shall consider sourcing agreements covering
6521	6521	13 electricity generated by power plants that were previously
6522	6522	14 owned by Illinois utilities and that have been or will be
6523	6523	15 converted into clean coal facilities, as defined by
6524	6524	16 Section 1-10 of this Act. Pursuant to such procurement
6525	6525	17 planning process, the owners of such facilities may
6526	6526	18 propose to the Agency sourcing agreements with utilities
6527	6527	19 and alternative retail electric suppliers required to
6528	6528	20 comply with subsection (d) of this Section and item (5) of
6529	6529	21 subsection (d) of Section 16-115 of the Public Utilities
6530	6530	22 Act, covering electricity generated by such facilities. In
6531	6531	23 the case of sourcing agreements that are power purchase
6532	6532	24 agreements, the contract price for electricity sales shall
6533	6533	25 be established on a cost of service basis. In the case of
6534	6534	26 sourcing agreements that are contracts for differences,
6535	6535
6536	6536
6537	6537
6538	6538
6539	6539
6540	6540	SB2497 - 181 - LRB104 12224 JDS 22330 b
6541	6541
6542	6542
6543	6543	SB2497- 182 -LRB104 12224 JDS 22330 b SB2497 - 182 - LRB104 12224 JDS 22330 b
6544	6544	SB2497 - 182 - LRB104 12224 JDS 22330 b
6545	6545	1 the contract price from which the reference price is
6546	6546	2 subtracted shall be established on a cost of service
6547	6547	3 basis. The Agency and the Commission may approve any such
6548	6548	4 utility sourcing agreements that do not exceed cost-based
6549	6549	5 benchmarks developed by the procurement administrator, in
6550	6550	6 consultation with the Commission staff, Agency staff and
6551	6551	7 the procurement monitor, subject to Commission review and
6552	6552	8 approval. The Commission shall have authority to inspect
6553	6553	9 all books and records associated with these clean coal
6554	6554	10 facilities during the term of any such contract.
6555	6555	11 (6) Costs incurred under this subsection (d) or
6556	6556	12 pursuant to a contract entered into under this subsection
6557	6557	13 (d) shall be deemed prudently incurred and reasonable in
6558	6558	14 amount and the electric utility shall be entitled to full
6559	6559	15 cost recovery pursuant to the tariffs filed with the
6560	6560	16 Commission.
6561	6561	17 (d-5) Zero emission standard.
6562	6562	18 (1) Beginning with the delivery year commencing on
6563	6563	19 June 1, 2017, the Agency shall, for electric utilities
6564	6564	20 that serve at least 100,000 retail customers in this
6565	6565	21 State, procure contracts with zero emission facilities
6566	6566	22 that are reasonably capable of generating cost-effective
6567	6567	23 zero emission credits in an amount approximately equal to
6568	6568	24 16% of the actual amount of electricity delivered by each
6569	6569	25 electric utility to retail customers in the State during
6570	6570	26 calendar year 2014. For an electric utility serving fewer
6571	6571
6572	6572
6573	6573
6574	6574
6575	6575
6576	6576	SB2497 - 182 - LRB104 12224 JDS 22330 b
6577	6577
6578	6578
6579	6579	SB2497- 183 -LRB104 12224 JDS 22330 b SB2497 - 183 - LRB104 12224 JDS 22330 b
6580	6580	SB2497 - 183 - LRB104 12224 JDS 22330 b
6581	6581	1 than 100,000 retail customers in this State that
6582	6582	2 requested, under Section 16-111.5 of the Public Utilities
6583	6583	3 Act, that the Agency procure power and energy for all or a
6584	6584	4 portion of the utility's Illinois load for the delivery
6585	6585	5 year commencing June 1, 2016, the Agency shall procure
6586	6586	6 contracts with zero emission facilities that are
6587	6587	7 reasonably capable of generating cost-effective zero
6588	6588	8 emission credits in an amount approximately equal to 16%
6589	6589	9 of the portion of power and energy to be procured by the
6590	6590	10 Agency for the utility. The duration of the contracts
6591	6591	11 procured under this subsection (d-5) shall be for a term
6592	6592	12 of 10 years ending May 31, 2027. The quantity of zero
6593	6593	13 emission credits to be procured under the contracts shall
6594	6594	14 be all of the zero emission credits generated by the zero
6595	6595	15 emission facility in each delivery year; however, if the
6596	6596	16 zero emission facility is owned by more than one entity,
6597	6597	17 then the quantity of zero emission credits to be procured
6598	6598	18 under the contracts shall be the amount of zero emission
6599	6599	19 credits that are generated from the portion of the zero
6600	6600	20 emission facility that is owned by the winning supplier.
6601	6601	21 The 16% value identified in this paragraph (1) is the
6602	6602	22 average of the percentage targets in subparagraph (B) of
6603	6603	23 paragraph (1) of subsection (c) of this Section for the 5
6604	6604	24 delivery years beginning June 1, 2017.
6605	6605	25 The procurement process shall be subject to the
6606	6606	26 following provisions:
6607	6607
6608	6608
6609	6609
6610	6610
6611	6611
6612	6612	SB2497 - 183 - LRB104 12224 JDS 22330 b
6613	6613
6614	6614
6615	6615	SB2497- 184 -LRB104 12224 JDS 22330 b SB2497 - 184 - LRB104 12224 JDS 22330 b
6616	6616	SB2497 - 184 - LRB104 12224 JDS 22330 b
6617	6617	1 (A) Those zero emission facilities that intend to
6618	6618	2 participate in the procurement shall submit to the
6619	6619	3 Agency the following eligibility information for each
6620	6620	4 zero emission facility on or before the date
6621	6621	5 established by the Agency:
6622	6622	6 (i) the in-service date and remaining useful
6623	6623	7 life of the zero emission facility;
6624	6624	8 (ii) the amount of power generated annually
6625	6625	9 for each of the years 2005 through 2015, and the
6626	6626	10 projected zero emission credits to be generated
6627	6627	11 over the remaining useful life of the zero
6628	6628	12 emission facility, which shall be used to
6629	6629	13 determine the capability of each facility;
6630	6630	14 (iii) the annual zero emission facility cost
6631	6631	15 projections, expressed on a per megawatt hour
6632	6632	16 megawatthour basis, over the next 6 delivery
6633	6633	17 years, which shall include the following:
6634	6634	18 operation and maintenance expenses; fully
6635	6635	19 allocated overhead costs, which shall be allocated
6636	6636	20 using the methodology developed by the Institute
6637	6637	21 for Nuclear Power Operations; fuel expenditures;
6638	6638	22 non-fuel capital expenditures; spent fuel
6639	6639	23 expenditures; a return on working capital; the
6640	6640	24 cost of operational and market risks that could be
6641	6641	25 avoided by ceasing operation; and any other costs
6642	6642	26 necessary for continued operations, provided that
6643	6643
6644	6644
6645	6645
6646	6646
6647	6647
6648	6648	SB2497 - 184 - LRB104 12224 JDS 22330 b
6649	6649
6650	6650
6651	6651	SB2497- 185 -LRB104 12224 JDS 22330 b SB2497 - 185 - LRB104 12224 JDS 22330 b
6652	6652	SB2497 - 185 - LRB104 12224 JDS 22330 b
6653	6653	1 "necessary" means, for purposes of this item
6654	6654	2 (iii), that the costs could reasonably be avoided
6655	6655	3 only by ceasing operations of the zero emission
6656	6656	4 facility; and
6657	6657	5 (iv) a commitment to continue operating, for
6658	6658	6 the duration of the contract or contracts executed
6659	6659	7 under the procurement held under this subsection
6660	6660	8 (d-5), the zero emission facility that produces
6661	6661	9 the zero emission credits to be procured in the
6662	6662	10 procurement.
6663	6663	11 The information described in item (iii) of this
6664	6664	12 subparagraph (A) may be submitted on a confidential
6665	6665	13 basis and shall be treated and maintained by the
6666	6666	14 Agency, the procurement administrator, and the
6667	6667	15 Commission as confidential and proprietary and exempt
6668	6668	16 from disclosure under subparagraphs (a) and (g) of
6669	6669	17 paragraph (1) of Section 7 of the Freedom of
6670	6670	18 Information Act. The Office of Attorney General shall
6671	6671	19 have access to, and maintain the confidentiality of,
6672	6672	20 such information pursuant to Section 6.5 of the
6673	6673	21 Attorney General Act.
6674	6674	22 (B) The price for each zero emission credit
6675	6675	23 procured under this subsection (d-5) for each delivery
6676	6676	24 year shall be in an amount that equals the Social Cost
6677	6677	25 of Carbon, expressed on a price per megawatt hour
6678	6678	26 megawatthour basis. However, to ensure that the
6679	6679
6680	6680
6681	6681
6682	6682
6683	6683
6684	6684	SB2497 - 185 - LRB104 12224 JDS 22330 b
6685	6685
6686	6686
6687	6687	SB2497- 186 -LRB104 12224 JDS 22330 b SB2497 - 186 - LRB104 12224 JDS 22330 b
6688	6688	SB2497 - 186 - LRB104 12224 JDS 22330 b
6689	6689	1 procurement remains affordable to retail customers in
6690	6690	2 this State if electricity prices increase, the price
6691	6691	3 in an applicable delivery year shall be reduced below
6692	6692	4 the Social Cost of Carbon by the amount ("Price
6693	6693	5 Adjustment") by which the market price index for the
6694	6694	6 applicable delivery year exceeds the baseline market
6695	6695	7 price index for the consecutive 12-month period ending
6696	6696	8 May 31, 2016. If the Price Adjustment is greater than
6697	6697	9 or equal to the Social Cost of Carbon in an applicable
6698	6698	10 delivery year, then no payments shall be due in that
6699	6699	11 delivery year. The components of this calculation are
6700	6700	12 defined as follows:
6701	6701	13 (i) Social Cost of Carbon: The Social Cost of
6702	6702	14 Carbon is $16.50 per megawatt hour megawatthour,
6703	6703	15 which is based on the U.S. Interagency Working
6704	6704	16 Group on Social Cost of Carbon's price in the
6705	6705	17 August 2016 Technical Update using a 3% discount
6706	6706	18 rate, adjusted for inflation for each year of the
6707	6707	19 program. Beginning with the delivery year
6708	6708	20 commencing June 1, 2023, the price per megawatt
6709	6709	21 hour megawatthour shall increase by $1 per
6710	6710	22 megawatt hour megawatthour, and continue to
6711	6711	23 increase by an additional $1 per megawatt hour
6712	6712	24 megawatthour each delivery year thereafter.
6713	6713	25 (ii) Baseline market price index: The baseline
6714	6714	26 market price index for the consecutive 12-month
6715	6715
6716	6716
6717	6717
6718	6718
6719	6719
6720	6720	SB2497 - 186 - LRB104 12224 JDS 22330 b
6721	6721
6722	6722
6723	6723	SB2497- 187 -LRB104 12224 JDS 22330 b SB2497 - 187 - LRB104 12224 JDS 22330 b
6724	6724	SB2497 - 187 - LRB104 12224 JDS 22330 b
6725	6725	1 period ending May 31, 2016 is $31.40 per megawatt
6726	6726	2 hour megawatthour, which is based on the sum of
6727	6727	3 (aa) the average day-ahead energy price across all
6728	6728	4 hours of such 12-month period at the PJM
6729	6729	5 Interconnection LLC Northern Illinois Hub, (bb)
6730	6730	6 50% multiplied by the Base Residual Auction, or
6731	6731	7 its successor, capacity price for the rest of the
6732	6732	8 RTO zone group determined by PJM Interconnection
6733	6733	9 LLC, divided by 24 hours per day, and (cc) 50%
6734	6734	10 multiplied by the Planning Resource Auction, or
6735	6735	11 its successor, capacity price for Zone 4
6736	6736	12 determined by the Midcontinent Independent System
6737	6737	13 Operator, Inc., divided by 24 hours per day.
6738	6738	14 (iii) Market price index: The market price
6739	6739	15 index for a delivery year shall be the sum of
6740	6740	16 projected energy prices and projected capacity
6741	6741	17 prices determined as follows:
6742	6742	18 (aa) Projected energy prices: the
6743	6743	19 projected energy prices for the applicable
6744	6744	20 delivery year shall be calculated once for the
6745	6745	21 year using the forward market price for the
6746	6746	22 PJM Interconnection, LLC Northern Illinois
6747	6747	23 Hub. The forward market price shall be
6748	6748	24 calculated as follows: the energy forward
6749	6749	25 prices for each month of the applicable
6750	6750	26 delivery year averaged for each trade date
6751	6751
6752	6752
6753	6753
6754	6754
6755	6755
6756	6756	SB2497 - 187 - LRB104 12224 JDS 22330 b
6757	6757
6758	6758
6759	6759	SB2497- 188 -LRB104 12224 JDS 22330 b SB2497 - 188 - LRB104 12224 JDS 22330 b
6760	6760	SB2497 - 188 - LRB104 12224 JDS 22330 b
6761	6761	1 during the calendar year immediately preceding
6762	6762	2 that delivery year to produce a single energy
6763	6763	3 forward price for the delivery year. The
6764	6764	4 forward market price calculation shall use
6765	6765	5 data published by the Intercontinental
6766	6766	6 Exchange, or its successor.
6767	6767	7 (bb) Projected capacity prices:
6768	6768	8 (I) For the delivery years commencing
6769	6769	9 June 1, 2017, June 1, 2018, and June 1,
6770	6770	10 2019, the projected capacity price shall
6771	6771	11 be equal to the sum of (1) 50% multiplied
6772	6772	12 by the Base Residual Auction, or its
6773	6773	13 successor, price for the rest of the RTO
6774	6774	14 zone group as determined by PJM
6775	6775	15 Interconnection LLC, divided by 24 hours
6776	6776	16 per day and, (2) 50% multiplied by the
6777	6777	17 resource auction price determined in the
6778	6778	18 resource auction administered by the
6779	6779	19 Midcontinent Independent System Operator,
6780	6780	20 Inc., in which the largest percentage of
6781	6781	21 load cleared for Local Resource Zone 4,
6782	6782	22 divided by 24 hours per day, and where
6783	6783	23 such price is determined by the
6784	6784	24 Midcontinent Independent System Operator,
6785	6785	25 Inc.
6786	6786	26 (II) For the delivery year commencing
6787	6787
6788	6788
6789	6789
6790	6790
6791	6791
6792	6792	SB2497 - 188 - LRB104 12224 JDS 22330 b
6793	6793
6794	6794
6795	6795	SB2497- 189 -LRB104 12224 JDS 22330 b SB2497 - 189 - LRB104 12224 JDS 22330 b
6796	6796	SB2497 - 189 - LRB104 12224 JDS 22330 b
6797	6797	1 June 1, 2020, and each year thereafter,
6798	6798	2 the projected capacity price shall be
6799	6799	3 equal to the sum of (1) 50% multiplied by
6800	6800	4 the Base Residual Auction, or its
6801	6801	5 successor, price for the ComEd zone as
6802	6802	6 determined by PJM Interconnection LLC,
6803	6803	7 divided by 24 hours per day, and (2) 50%
6804	6804	8 multiplied by the resource auction price
6805	6805	9 determined in the resource auction
6806	6806	10 administered by the Midcontinent
6807	6807	11 Independent System Operator, Inc., in
6808	6808	12 which the largest percentage of load
6809	6809	13 cleared for Local Resource Zone 4, divided
6810	6810	14 by 24 hours per day, and where such price
6811	6811	15 is determined by the Midcontinent
6812	6812	16 Independent System Operator, Inc.
6813	6813	17 For purposes of this subsection (d-5):
6814	6814	18 "Rest of the RTO" and "ComEd Zone" shall have
6815	6815	19 the meaning ascribed to them by PJM
6816	6816	20 Interconnection, LLC.
6817	6817	21 "RTO" means regional transmission
6818	6818	22 organization.
6819	6819	23 (C) No later than 45 days after June 1, 2017 (the
6820	6820	24 effective date of Public Act 99-906), the Agency shall
6821	6821	25 publish its proposed zero emission standard
6822	6822	26 procurement plan. The plan shall be consistent with
6823	6823
6824	6824
6825	6825
6826	6826
6827	6827
6828	6828	SB2497 - 189 - LRB104 12224 JDS 22330 b
6829	6829
6830	6830
6831	6831	SB2497- 190 -LRB104 12224 JDS 22330 b SB2497 - 190 - LRB104 12224 JDS 22330 b
6832	6832	SB2497 - 190 - LRB104 12224 JDS 22330 b
6833	6833	1 the provisions of this paragraph (1) and shall provide
6834	6834	2 that winning bids shall be selected based on public
6835	6835	3 interest criteria that include, but are not limited
6836	6836	4 to, minimizing carbon dioxide emissions that result
6837	6837	5 from electricity consumed in Illinois and minimizing
6838	6838	6 sulfur dioxide, nitrogen oxide, and particulate matter
6839	6839	7 emissions that adversely affect the citizens of this
6840	6840	8 State. In particular, the selection of winning bids
6841	6841	9 shall take into account the incremental environmental
6842	6842	10 benefits resulting from the procurement, such as any
6843	6843	11 existing environmental benefits that are preserved by
6844	6844	12 the procurements held under Public Act 99-906 and
6845	6845	13 would cease to exist if the procurements were not
6846	6846	14 held, including the preservation of zero emission
6847	6847	15 facilities. The plan shall also describe in detail how
6848	6848	16 each public interest factor shall be considered and
6849	6849	17 weighted in the bid selection process to ensure that
6850	6850	18 the public interest criteria are applied to the
6851	6851	19 procurement and given full effect.
6852	6852	20 For purposes of developing the plan, the Agency
6853	6853	21 shall consider any reports issued by a State agency,
6854	6854	22 board, or commission under House Resolution 1146 of
6855	6855	23 the 98th General Assembly and paragraph (4) of
6856	6856	24 subsection (d) of this Section, as well as publicly
6857	6857	25 available analyses and studies performed by or for
6858	6858	26 regional transmission organizations that serve the
6859	6859
6860	6860
6861	6861
6862	6862
6863	6863
6864	6864	SB2497 - 190 - LRB104 12224 JDS 22330 b
6865	6865
6866	6866
6867	6867	SB2497- 191 -LRB104 12224 JDS 22330 b SB2497 - 191 - LRB104 12224 JDS 22330 b
6868	6868	SB2497 - 191 - LRB104 12224 JDS 22330 b
6869	6869	1 State and their independent market monitors.
6870	6870	2 Upon publishing of the zero emission standard
6871	6871	3 procurement plan, copies of the plan shall be posted
6872	6872	4 and made publicly available on the Agency's website.
6873	6873	5 All interested parties shall have 10 days following
6874	6874	6 the date of posting to provide comment to the Agency on
6875	6875	7 the plan. All comments shall be posted to the Agency's
6876	6876	8 website. Following the end of the comment period, but
6877	6877	9 no more than 60 days later than June 1, 2017 (the
6878	6878	10 effective date of Public Act 99-906), the Agency shall
6879	6879	11 revise the plan as necessary based on the comments
6880	6880	12 received and file its zero emission standard
6881	6881	13 procurement plan with the Commission.
6882	6882	14 If the Commission determines that the plan will
6883	6883	15 result in the procurement of cost-effective zero
6884	6884	16 emission credits, then the Commission shall, after
6885	6885	17 notice and hearing, but no later than 45 days after the
6886	6886	18 Agency filed the plan, approve the plan or approve
6887	6887	19 with modification. For purposes of this subsection
6888	6888	20 (d-5), "cost effective" means the projected costs of
6889	6889	21 procuring zero emission credits from zero emission
6890	6890	22 facilities do not cause the limit stated in paragraph
6891	6891	23 (2) of this subsection to be exceeded.
6892	6892	24 (C-5) As part of the Commission's review and
6893	6893	25 acceptance or rejection of the procurement results,
6894	6894	26 the Commission shall, in its public notice of
6895	6895
6896	6896
6897	6897
6898	6898
6899	6899
6900	6900	SB2497 - 191 - LRB104 12224 JDS 22330 b
6901	6901
6902	6902
6903	6903	SB2497- 192 -LRB104 12224 JDS 22330 b SB2497 - 192 - LRB104 12224 JDS 22330 b
6904	6904	SB2497 - 192 - LRB104 12224 JDS 22330 b
6905	6905	1 successful bidders:
6906	6906	2 (i) identify how the winning bids satisfy the
6907	6907	3 public interest criteria described in subparagraph
6908	6908	4 (C) of this paragraph (1) of minimizing carbon
6909	6909	5 dioxide emissions that result from electricity
6910	6910	6 consumed in Illinois and minimizing sulfur
6911	6911	7 dioxide, nitrogen oxide, and particulate matter
6912	6912	8 emissions that adversely affect the citizens of
6913	6913	9 this State;
6914	6914	10 (ii) specifically address how the selection of
6915	6915	11 winning bids takes into account the incremental
6916	6916	12 environmental benefits resulting from the
6917	6917	13 procurement, including any existing environmental
6918	6918	14 benefits that are preserved by the procurements
6919	6919	15 held under Public Act 99-906 and would have ceased
6920	6920	16 to exist if the procurements had not been held,
6921	6921	17 such as the preservation of zero emission
6922	6922	18 facilities;
6923	6923	19 (iii) quantify the environmental benefit of
6924	6924	20 preserving the resources identified in item (ii)
6925	6925	21 of this subparagraph (C-5), including the
6926	6926	22 following:
6927	6927	23 (aa) the value of avoided greenhouse gas
6928	6928	24 emissions measured as the product of the zero
6929	6929	25 emission facilities' output over the contract
6930	6930	26 term multiplied by the U.S. Environmental
6931	6931
6932	6932
6933	6933
6934	6934
6935	6935
6936	6936	SB2497 - 192 - LRB104 12224 JDS 22330 b
6937	6937
6938	6938
6939	6939	SB2497- 193 -LRB104 12224 JDS 22330 b SB2497 - 193 - LRB104 12224 JDS 22330 b
6940	6940	SB2497 - 193 - LRB104 12224 JDS 22330 b
6941	6941	1 Protection Agency eGrid subregion carbon
6942	6942	2 dioxide emission rate and the U.S. Interagency
6943	6943	3 Working Group on Social Cost of Carbon's price
6944	6944	4 in the August 2016 Technical Update using a 3%
6945	6945	5 discount rate, adjusted for inflation for each
6946	6946	6 delivery year; and
6947	6947	7 (bb) the costs of replacement with other
6948	6948	8 zero carbon dioxide resources, including wind
6949	6949	9 and photovoltaic, based upon the simple
6950	6950	10 average of the following:
6951	6951	11 (I) the price, or if there is more
6952	6952	12 than one price, the average of the prices,
6953	6953	13 paid for renewable energy credits from new
6954	6954	14 utility-scale wind projects in the
6955	6955	15 procurement events specified in item (i)
6956	6956	16 of subparagraph (G) of paragraph (1) of
6957	6957	17 subsection (c) of this Section; and
6958	6958	18 (II) the price, or if there is more
6959	6959	19 than one price, the average of the prices,
6960	6960	20 paid for renewable energy credits from new
6961	6961	21 utility-scale solar projects and
6962	6962	22 brownfield site photovoltaic projects in
6963	6963	23 the procurement events specified in item
6964	6964	24 (ii) of subparagraph (G) of paragraph (1)
6965	6965	25 of subsection (c) of this Section and,
6966	6966	26 after January 1, 2015, renewable energy
6967	6967
6968	6968
6969	6969
6970	6970
6971	6971
6972	6972	SB2497 - 193 - LRB104 12224 JDS 22330 b
6973	6973
6974	6974
6975	6975	SB2497- 194 -LRB104 12224 JDS 22330 b SB2497 - 194 - LRB104 12224 JDS 22330 b
6976	6976	SB2497 - 194 - LRB104 12224 JDS 22330 b
6977	6977	1 credits from photovoltaic distributed
6978	6978	2 generation projects in procurement events
6979	6979	3 held under subsection (c) of this Section.
6980	6980	4 Each utility shall enter into binding contractual
6981	6981	5 arrangements with the winning suppliers.
6982	6982	6 The procurement described in this subsection
6983	6983	7 (d-5), including, but not limited to, the execution of
6984	6984	8 all contracts procured, shall be completed no later
6985	6985	9 than May 10, 2017. Based on the effective date of
6986	6986	10 Public Act 99-906, the Agency and Commission may, as
6987	6987	11 appropriate, modify the various dates and timelines
6988	6988	12 under this subparagraph and subparagraphs (C) and (D)
6989	6989	13 of this paragraph (1). The procurement and plan
6990	6990	14 approval processes required by this subsection (d-5)
6991	6991	15 shall be conducted in conjunction with the procurement
6992	6992	16 and plan approval processes required by subsection (c)
6993	6993	17 of this Section and Section 16-111.5 of the Public
6994	6994	18 Utilities Act, to the extent practicable.
6995	6995	19 Notwithstanding whether a procurement event is
6996	6996	20 conducted under Section 16-111.5 of the Public
6997	6997	21 Utilities Act, the Agency shall immediately initiate a
6998	6998	22 procurement process on June 1, 2017 (the effective
6999	6999	23 date of Public Act 99-906).
7000	7000	24 (D) Following the procurement event described in
7001	7001	25 this paragraph (1) and consistent with subparagraph
7002	7002	26 (B) of this paragraph (1), the Agency shall calculate
7003	7003
7004	7004
7005	7005
7006	7006
7007	7007
7008	7008	SB2497 - 194 - LRB104 12224 JDS 22330 b
7009	7009
7010	7010
7011	7011	SB2497- 195 -LRB104 12224 JDS 22330 b SB2497 - 195 - LRB104 12224 JDS 22330 b
7012	7012	SB2497 - 195 - LRB104 12224 JDS 22330 b
7013	7013	1 the payments to be made under each contract for the
7014	7014	2 next delivery year based on the market price index for
7015	7015	3 that delivery year. The Agency shall publish the
7016	7016	4 payment calculations no later than May 25, 2017 and
7017	7017	5 every May 25 thereafter.
7018	7018	6 (E) Notwithstanding the requirements of this
7019	7019	7 subsection (d-5), the contracts executed under this
7020	7020	8 subsection (d-5) shall provide that the zero emission
7021	7021	9 facility may, as applicable, suspend or terminate
7022	7022	10 performance under the contracts in the following
7023	7023	11 instances:
7024	7024	12 (i) A zero emission facility shall be excused
7025	7025	13 from its performance under the contract for any
7026	7026	14 cause beyond the control of the resource,
7027	7027	15 including, but not restricted to, acts of God,
7028	7028	16 flood, drought, earthquake, storm, fire,
7029	7029	17 lightning, epidemic, war, riot, civil disturbance
7030	7030	18 or disobedience, labor dispute, labor or material
7031	7031	19 shortage, sabotage, acts of public enemy,
7032	7032	20 explosions, orders, regulations or restrictions
7033	7033	21 imposed by governmental, military, or lawfully
7034	7034	22 established civilian authorities, which, in any of
7035	7035	23 the foregoing cases, by exercise of commercially
7036	7036	24 reasonable efforts the zero emission facility
7037	7037	25 could not reasonably have been expected to avoid,
7038	7038	26 and which, by the exercise of commercially
7039	7039
7040	7040
7041	7041
7042	7042
7043	7043
7044	7044	SB2497 - 195 - LRB104 12224 JDS 22330 b
7045	7045
7046	7046
7047	7047	SB2497- 196 -LRB104 12224 JDS 22330 b SB2497 - 196 - LRB104 12224 JDS 22330 b
7048	7048	SB2497 - 196 - LRB104 12224 JDS 22330 b
7049	7049	1 reasonable efforts, it has been unable to
7050	7050	2 overcome. In such event, the zero emission
7051	7051	3 facility shall be excused from performance for the
7052	7052	4 duration of the event, including, but not limited
7053	7053	5 to, delivery of zero emission credits, and no
7054	7054	6 payment shall be due to the zero emission facility
7055	7055	7 during the duration of the event.
7056	7056	8 (ii) A zero emission facility shall be
7057	7057	9 permitted to terminate the contract if legislation
7058	7058	10 is enacted into law by the General Assembly that
7059	7059	11 imposes or authorizes a new tax, special
7060	7060	12 assessment, or fee on the generation of
7061	7061	13 electricity, the ownership or leasehold of a
7062	7062	14 generating unit, or the privilege or occupation of
7063	7063	15 such generation, ownership, or leasehold of
7064	7064	16 generation units by a zero emission facility.
7065	7065	17 However, the provisions of this item (ii) do not
7066	7066	18 apply to any generally applicable tax, special
7067	7067	19 assessment or fee, or requirements imposed by
7068	7068	20 federal law.
7069	7069	21 (iii) A zero emission facility shall be
7070	7070	22 permitted to terminate the contract in the event
7071	7071	23 that the resource requires capital expenditures in
7072	7072	24 excess of $40,000,000 that were neither known nor
7073	7073	25 reasonably foreseeable at the time it executed the
7074	7074	26 contract and that a prudent owner or operator of
7075	7075
7076	7076
7077	7077
7078	7078
7079	7079
7080	7080	SB2497 - 196 - LRB104 12224 JDS 22330 b
7081	7081
7082	7082
7083	7083	SB2497- 197 -LRB104 12224 JDS 22330 b SB2497 - 197 - LRB104 12224 JDS 22330 b
7084	7084	SB2497 - 197 - LRB104 12224 JDS 22330 b
7085	7085	1 such resource would not undertake.
7086	7086	2 (iv) A zero emission facility shall be
7087	7087	3 permitted to terminate the contract in the event
7088	7088	4 the Nuclear Regulatory Commission terminates the
7089	7089	5 resource's license.
7090	7090	6 (F) If the zero emission facility elects to
7091	7091	7 terminate a contract under subparagraph (E) of this
7092	7092	8 paragraph (1), then the Commission shall reopen the
7093	7093	9 docket in which the Commission approved the zero
7094	7094	10 emission standard procurement plan under subparagraph
7095	7095	11 (C) of this paragraph (1) and, after notice and
7096	7096	12 hearing, enter an order acknowledging the contract
7097	7097	13 termination election if such termination is consistent
7098	7098	14 with the provisions of this subsection (d-5).
7099	7099	15 (2) For purposes of this subsection (d-5), the amount
7100	7100	16 paid per kilowatthour means the total amount paid for
7101	7101	17 electric service expressed on a per kilowatthour basis.
7102	7102	18 For purposes of this subsection (d-5), the total amount
7103	7103	19 paid for electric service includes, without limitation,
7104	7104	20 amounts paid for supply, transmission, distribution,
7105	7105	21 surcharges, and add-on taxes.
7106	7106	22 Notwithstanding the requirements of this subsection
7107	7107	23 (d-5), the contracts executed under this subsection (d-5)
7108	7108	24 shall provide that the total of zero emission credits
7109	7109	25 procured under a procurement plan shall be subject to the
7110	7110	26 limitations of this paragraph (2). For each delivery year,
7111	7111
7112	7112
7113	7113
7114	7114
7115	7115
7116	7116	SB2497 - 197 - LRB104 12224 JDS 22330 b
7117	7117
7118	7118
7119	7119	SB2497- 198 -LRB104 12224 JDS 22330 b SB2497 - 198 - LRB104 12224 JDS 22330 b
7120	7120	SB2497 - 198 - LRB104 12224 JDS 22330 b
7121	7121	1 the contractual volume receiving payments in such year
7122	7122	2 shall be reduced for all retail customers based on the
7123	7123	3 amount necessary to limit the net increase that delivery
7124	7124	4 year to the costs of those credits included in the amounts
7125	7125	5 paid by eligible retail customers in connection with
7126	7126	6 electric service to no more than 1.65% of the amount paid
7127	7127	7 per kilowatthour by eligible retail customers during the
7128	7128	8 year ending May 31, 2009. The result of this computation
7129	7129	9 shall apply to and reduce the procurement for all retail
7130	7130	10 customers, and all those customers shall pay the same
7131	7131	11 single, uniform cents per kilowatthour charge under
7132	7132	12 subsection (k) of Section 16-108 of the Public Utilities
7133	7133	13 Act. To arrive at a maximum dollar amount of zero emission
7134	7134	14 credits to be paid for the particular delivery year, the
7135	7135	15 resulting per kilowatthour amount shall be applied to the
7136	7136	16 actual amount of kilowatthours of electricity delivered by
7137	7137	17 the electric utility in the delivery year immediately
7138	7138	18 prior to the procurement, to all retail customers in its
7139	7139	19 service territory. Unpaid contractual volume for any
7140	7140	20 delivery year shall be paid in any subsequent delivery
7141	7141	21 year in which such payments can be made without exceeding
7142	7142	22 the amount specified in this paragraph (2). The
7143	7143	23 calculations required by this paragraph (2) shall be made
7144	7144	24 only once for each procurement plan year. Once the
7145	7145	25 determination as to the amount of zero emission credits to
7146	7146	26 be paid is made based on the calculations set forth in this
7147	7147
7148	7148
7149	7149
7150	7150
7151	7151
7152	7152	SB2497 - 198 - LRB104 12224 JDS 22330 b
7153	7153
7154	7154
7155	7155	SB2497- 199 -LRB104 12224 JDS 22330 b SB2497 - 199 - LRB104 12224 JDS 22330 b
7156	7156	SB2497 - 199 - LRB104 12224 JDS 22330 b
7157	7157	1 paragraph (2), no subsequent rate impact determinations
7158	7158	2 shall be made and no adjustments to those contract amounts
7159	7159	3 shall be allowed. All costs incurred under those contracts
7160	7160	4 and in implementing this subsection (d-5) shall be
7161	7161	5 recovered by the electric utility as provided in this
7162	7162	6 Section.
7163	7163	7 No later than June 30, 2019, the Commission shall
7164	7164	8 review the limitation on the amount of zero emission
7165	7165	9 credits procured under this subsection (d-5) and report to
7166	7166	10 the General Assembly its findings as to whether that
7167	7167	11 limitation unduly constrains the procurement of
7168	7168	12 cost-effective zero emission credits.
7169	7169	13 (3) Six years after the execution of a contract under
7170	7170	14 this subsection (d-5), the Agency shall determine whether
7171	7171	15 the actual zero emission credit payments received by the
7172	7172	16 supplier over the 6-year period exceed the Average ZEC
7173	7173	17 Payment. In addition, at the end of the term of a contract
7174	7174	18 executed under this subsection (d-5), or at the time, if
7175	7175	19 any, a zero emission facility's contract is terminated
7176	7176	20 under subparagraph (E) of paragraph (1) of this subsection
7177	7177	21 (d-5), then the Agency shall determine whether the actual
7178	7178	22 zero emission credit payments received by the supplier
7179	7179	23 over the term of the contract exceed the Average ZEC
7180	7180	24 Payment, after taking into account any amounts previously
7181	7181	25 credited back to the utility under this paragraph (3). If
7182	7182	26 the Agency determines that the actual zero emission credit
7183	7183
7184	7184
7185	7185
7186	7186
7187	7187
7188	7188	SB2497 - 199 - LRB104 12224 JDS 22330 b
7189	7189
7190	7190
7191	7191	SB2497- 200 -LRB104 12224 JDS 22330 b SB2497 - 200 - LRB104 12224 JDS 22330 b
7192	7192	SB2497 - 200 - LRB104 12224 JDS 22330 b
7193	7193	1 payments received by the supplier over the relevant period
7194	7194	2 exceed the Average ZEC Payment, then the supplier shall
7195	7195	3 credit the difference back to the utility. The amount of
7196	7196	4 the credit shall be remitted to the applicable electric
7197	7197	5 utility no later than 120 days after the Agency's
7198	7198	6 determination, which the utility shall reflect as a credit
7199	7199	7 on its retail customer bills as soon as practicable;
7200	7200	8 however, the credit remitted to the utility shall not
7201	7201	9 exceed the total amount of payments received by the
7202	7202	10 facility under its contract.
7203	7203	11 For purposes of this Section, the Average ZEC Payment
7204	7204	12 shall be calculated by multiplying the quantity of zero
7205	7205	13 emission credits delivered under the contract times the
7206	7206	14 average contract price. The average contract price shall
7207	7207	15 be determined by subtracting the amount calculated under
7208	7208	16 subparagraph (B) of this paragraph (3) from the amount
7209	7209	17 calculated under subparagraph (A) of this paragraph (3),
7210	7210	18 as follows:
7211	7211	19 (A) The average of the Social Cost of Carbon, as
7212	7212	20 defined in subparagraph (B) of paragraph (1) of this
7213	7213	21 subsection (d-5), during the term of the contract.
7214	7214	22 (B) The average of the market price indices, as
7215	7215	23 defined in subparagraph (B) of paragraph (1) of this
7216	7216	24 subsection (d-5), during the term of the contract,
7217	7217	25 minus the baseline market price index, as defined in
7218	7218	26 subparagraph (B) of paragraph (1) of this subsection
7219	7219
7220	7220
7221	7221
7222	7222
7223	7223
7224	7224	SB2497 - 200 - LRB104 12224 JDS 22330 b
7225	7225
7226	7226
7227	7227	SB2497- 201 -LRB104 12224 JDS 22330 b SB2497 - 201 - LRB104 12224 JDS 22330 b
7228	7228	SB2497 - 201 - LRB104 12224 JDS 22330 b
7229	7229	1 (d-5).
7230	7230	2 If the subtraction yields a negative number, then the
7231	7231	3 Average ZEC Payment shall be zero.
7232	7232	4 (4) Cost-effective zero emission credits procured from
7233	7233	5 zero emission facilities shall satisfy the applicable
7234	7234	6 definitions set forth in Section 1-10 of this Act.
7235	7235	7 (5) The electric utility shall retire all zero
7236	7236	8 emission credits used to comply with the requirements of
7237	7237	9 this subsection (d-5).
7238	7238	10 (6) Electric utilities shall be entitled to recover
7239	7239	11 all of the costs associated with the procurement of zero
7240	7240	12 emission credits through an automatic adjustment clause
7241	7241	13 tariff in accordance with subsection (k) and (m) of
7242	7242	14 Section 16-108 of the Public Utilities Act, and the
7243	7243	15 contracts executed under this subsection (d-5) shall
7244	7244	16 provide that the utilities' payment obligations under such
7245	7245	17 contracts shall be reduced if an adjustment is required
7246	7246	18 under subsection (m) of Section 16-108 of the Public
7247	7247	19 Utilities Act.
7248	7248	20 (7) This subsection (d-5) shall become inoperative on
7249	7249	21 January 1, 2028.
7250	7250	22 (d-10) Nuclear Plant Assistance; carbon mitigation
7251	7251	23 credits.
7252	7252	24 (1) The General Assembly finds:
7253	7253	25 (A) The health, welfare, and prosperity of all
7254	7254	26 Illinois citizens require that the State of Illinois act
7255	7255
7256	7256
7257	7257
7258	7258
7259	7259
7260	7260	SB2497 - 201 - LRB104 12224 JDS 22330 b
7261	7261
7262	7262
7263	7263	SB2497- 202 -LRB104 12224 JDS 22330 b SB2497 - 202 - LRB104 12224 JDS 22330 b
7264	7264	SB2497 - 202 - LRB104 12224 JDS 22330 b
7265	7265	1 to avoid and not increase carbon emissions from electric
7266	7266	2 generation sources while continuing to ensure affordable,
7267	7267	3 stable, and reliable electricity to all citizens.
7268	7268	4 (B) Absent immediate action by the State to preserve
7269	7269	5 existing carbon-free energy resources, those resources may
7270	7270	6 retire, and the electric generation needs of Illinois'
7271	7271	7 retail customers may be met instead by facilities that
7272	7272	8 emit significant amounts of carbon pollution and other
7273	7273	9 harmful air pollutants at a high social and economic cost
7274	7274	10 until Illinois is able to develop other forms of clean
7275	7275	11 energy.
7276	7276	12 (C) The General Assembly finds that nuclear power
7277	7277	13 generation is necessary for the State's transition to 100%
7278	7278	14 clean energy, and ensuring continued operation of nuclear
7279	7279	15 plants advances environmental and public health interests
7280	7280	16 through providing carbon-free electricity while reducing
7281	7281	17 the air pollution profile of the Illinois energy
7282	7282	18 generation fleet.
7283	7283	19 (D) The clean energy attributes of nuclear generation
7284	7284	20 facilities support the State in its efforts to achieve
7285	7285	21 100% clean energy.
7286	7286	22 (E) The State currently invests in various forms of
7287	7287	23 clean energy, including, but not limited to, renewable
7288	7288	24 energy, energy efficiency, and low-emission vehicles,
7289	7289	25 among others.
7290	7290	26 (F) The Environmental Protection Agency commissioned
7291	7291
7292	7292
7293	7293
7294	7294
7295	7295
7296	7296	SB2497 - 202 - LRB104 12224 JDS 22330 b
7297	7297
7298	7298
7299	7299	SB2497- 203 -LRB104 12224 JDS 22330 b SB2497 - 203 - LRB104 12224 JDS 22330 b
7300	7300	SB2497 - 203 - LRB104 12224 JDS 22330 b
7301	7301	1 an independent audit which provided a detailed assessment
7302	7302	2 of the financial condition of the Illinois nuclear fleet
7303	7303	3 to evaluate its financial viability and whether the
7304	7304	4 environmental benefits of such resources were at risk. The
7305	7305	5 report identified the risk of losing the environmental
7306	7306	6 benefits of several specific nuclear units. The report
7307	7307	7 also identified that the LaSalle County Generating Station
7308	7308	8 will continue to operate through 2026 and therefore is not
7309	7309	9 eligible to participate in the carbon mitigation credit
7310	7310	10 program.
7311	7311	11 (G) Nuclear plants provide carbon-free energy, which
7312	7312	12 helps to avoid many health-related negative impacts for
7313	7313	13 Illinois residents.
7314	7314	14 (H) The procurement of carbon mitigation credits
7315	7315	15 representing the environmental benefits of carbon-free
7316	7316	16 generation will further the State's efforts at achieving
7317	7317	17 100% clean energy and decarbonizing the electricity sector
7318	7318	18 in a safe, reliable, and affordable manner. Further, the
7319	7319	19 procurement of carbon emission credits will enhance the
7320	7320	20 health and welfare of Illinois residents through decreased
7321	7321	21 reliance on more highly polluting generation.
7322	7322	22 (I) The General Assembly therefore finds it necessary
7323	7323	23 to establish carbon mitigation credits to ensure decreased
7324	7324	24 reliance on more carbon-intensive energy resources, for
7325	7325	25 transitioning to a fully decarbonized electricity sector,
7326	7326	26 and to help ensure health and welfare of the State's
7327	7327
7328	7328
7329	7329
7330	7330
7331	7331
7332	7332	SB2497 - 203 - LRB104 12224 JDS 22330 b
7333	7333
7334	7334
7335	7335	SB2497- 204 -LRB104 12224 JDS 22330 b SB2497 - 204 - LRB104 12224 JDS 22330 b
7336	7336	SB2497 - 204 - LRB104 12224 JDS 22330 b
7337	7337	1 residents.
7338	7338	2 (2) As used in this subsection:
7339	7339	3 "Baseline costs" means costs used to establish a customer
7340	7340	4 protection cap that have been evaluated through an independent
7341	7341	5 audit of a carbon-free energy resource conducted by the
7342	7342	6 Environmental Protection Agency that evaluated projected
7343	7343	7 annual costs for operation and maintenance expenses; fully
7344	7344	8 allocated overhead costs, which shall be allocated using the
7345	7345	9 methodology developed by the Institute for Nuclear Power
7346	7346	10 Operations; fuel expenditures; nonfuel capital expenditures;
7347	7347	11 spent fuel expenditures; a return on working capital; the cost
7348	7348	12 of operational and market risks that could be avoided by
7349	7349	13 ceasing operation; and any other costs necessary for continued
7350	7350	14 operations, provided that "necessary" means, for purposes of
7351	7351	15 this definition, that the costs could reasonably be avoided
7352	7352	16 only by ceasing operations of the carbon-free energy resource.
7353	7353	17 "Carbon mitigation credit" means a tradable credit that
7354	7354	18 represents the carbon emission reduction attributes of one
7355	7355	19 megawatt-hour of energy produced from a carbon-free energy
7356	7356	20 resource.
7357	7357	21 "Carbon-free energy resource" means a generation facility
7358	7358	22 that: (1) is fueled by nuclear power; and (2) is
7359	7359	23 interconnected to PJM Interconnection, LLC.
7360	7360	24 (3) Procurement.
7361	7361	25 (A) Beginning with the delivery year commencing on
7362	7362	26 June 1, 2022, the Agency shall, for electric utilities
7363	7363
7364	7364
7365	7365
7366	7366
7367	7367
7368	7368	SB2497 - 204 - LRB104 12224 JDS 22330 b
7369	7369
7370	7370
7371	7371	SB2497- 205 -LRB104 12224 JDS 22330 b SB2497 - 205 - LRB104 12224 JDS 22330 b
7372	7372	SB2497 - 205 - LRB104 12224 JDS 22330 b
7373	7373	1 serving at least 3,000,000 retail customers in the State,
7374	7374	2 seek to procure contracts for no more than approximately
7375	7375	3 54,500,000 cost-effective carbon mitigation credits from
7376	7376	4 carbon-free energy resources because such credits are
7377	7377	5 necessary to support current levels of carbon-free energy
7378	7378	6 generation and ensure the State meets its carbon dioxide
7379	7379	7 emissions reduction goals. The Agency shall not make a
7380	7380	8 partial award of a contract for carbon mitigation credits
7381	7381	9 covering a fractional amount of a carbon-free energy
7382	7382	10 resource's projected output.
7383	7383	11 (B) Each carbon-free energy resource that intends to
7384	7384	12 participate in a procurement shall be required to submit
7385	7385	13 to the Agency the following information for the resource
7386	7386	14 on or before the date established by the Agency:
7387	7387	15 (i) the in-service date and remaining useful life
7388	7388	16 of the carbon-free energy resource;
7389	7389	17 (ii) the amount of power generated annually for
7390	7390	18 each of the past 10 years, which shall be used to
7391	7391	19 determine the capability of each facility;
7392	7392	20 (iii) a commitment to be reflected in any contract
7393	7393	21 entered into pursuant to this subsection (d-10) to
7394	7394	22 continue operating the carbon-free energy resource at
7395	7395	23 a capacity factor of at least 88% annually on average
7396	7396	24 for the duration of the contract or contracts executed
7397	7397	25 under the procurement held under this subsection
7398	7398	26 (d-10), except in an instance described in
7399	7399
7400	7400
7401	7401
7402	7402
7403	7403
7404	7404	SB2497 - 205 - LRB104 12224 JDS 22330 b
7405	7405
7406	7406
7407	7407	SB2497- 206 -LRB104 12224 JDS 22330 b SB2497 - 206 - LRB104 12224 JDS 22330 b
7408	7408	SB2497 - 206 - LRB104 12224 JDS 22330 b
7409	7409	1 subparagraph (E) of paragraph (1) of subsection (d-5)
7410	7410	2 of this Section or made impracticable as a result of
7411	7411	3 compliance with law or regulation;
7412	7412	4 (iv) financial need and the risk of loss of the
7413	7413	5 environmental benefits of such resource, which shall
7414	7414	6 include the following information:
7415	7415	7 (I) the carbon-free energy resource's cost
7416	7416	8 projections, expressed on a per megawatt-hour
7417	7417	9 basis, over the next 5 delivery years, which shall
7418	7418	10 include the following: operation and maintenance
7419	7419	11 expenses; fully allocated overhead costs, which
7420	7420	12 shall be allocated using the methodology developed
7421	7421	13 by the Institute for Nuclear Power Operations;
7422	7422	14 fuel expenditures; nonfuel capital expenditures;
7423	7423	15 spent fuel expenditures; a return on working
7424	7424	16 capital; the cost of operational and market risks
7425	7425	17 that could be avoided by ceasing operation; and
7426	7426	18 any other costs necessary for continued
7427	7427	19 operations, provided that "necessary" means, for
7428	7428	20 purposes of this subitem (I), that the costs could
7429	7429	21 reasonably be avoided only by ceasing operations
7430	7430	22 of the carbon-free energy resource; and
7431	7431	23 (II) the carbon-free energy resource's revenue
7432	7432	24 projections, including energy, capacity, ancillary
7433	7433	25 services, any other direct State support, known or
7434	7434	26 anticipated federal attribute credits, known or
7435	7435
7436	7436
7437	7437
7438	7438
7439	7439
7440	7440	SB2497 - 206 - LRB104 12224 JDS 22330 b
7441	7441
7442	7442
7443	7443	SB2497- 207 -LRB104 12224 JDS 22330 b SB2497 - 207 - LRB104 12224 JDS 22330 b
7444	7444	SB2497 - 207 - LRB104 12224 JDS 22330 b
7445	7445	1 anticipated tax credits, and any other direct
7446	7446	2 federal support.
7447	7447	3 The information described in this subparagraph (B) may
7448	7448	4 be submitted on a confidential basis and shall be treated
7449	7449	5 and maintained by the Agency, the procurement
7450	7450	6 administrator, and the Commission as confidential and
7451	7451	7 proprietary and exempt from disclosure under subparagraphs
7452	7452	8 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
7453	7453	9 Information Act. The Office of the Attorney General shall
7454	7454	10 have access to, and maintain the confidentiality of, such
7455	7455	11 information pursuant to Section 6.5 of the Attorney
7456	7456	12 General Act.
7457	7457	13 (C) The Agency shall solicit bids for the contracts
7458	7458	14 described in this subsection (d-10) from carbon-free
7459	7459	15 energy resources that have satisfied the requirements of
7460	7460	16 subparagraph (B) of this paragraph (3). The contracts
7461	7461	17 procured pursuant to a procurement event shall reflect,
7462	7462	18 and be subject to, the following terms, requirements, and
7463	7463	19 limitations:
7464	7464	20 (i) Contracts are for delivery of carbon
7465	7465	21 mitigation credits, and are not energy or capacity
7466	7466	22 sales contracts requiring physical delivery. Pursuant
7467	7467	23 to item (iii), contract payments shall fully deduct
7468	7468	24 the value of any monetized federal production tax
7469	7469	25 credits, credits issued pursuant to a federal clean
7470	7470	26 energy standard, and other federal credits if
7471	7471
7472	7472
7473	7473
7474	7474
7475	7475
7476	7476	SB2497 - 207 - LRB104 12224 JDS 22330 b
7477	7477
7478	7478
7479	7479	SB2497- 208 -LRB104 12224 JDS 22330 b SB2497 - 208 - LRB104 12224 JDS 22330 b
7480	7480	SB2497 - 208 - LRB104 12224 JDS 22330 b
7481	7481	1 applicable.
7482	7482	2 (ii) Contracts for carbon mitigation credits shall
7483	7483	3 commence with the delivery year beginning on June 1,
7484	7484	4 2022 and shall be for a term of 5 delivery years
7485	7485	5 concluding on May 31, 2027.
7486	7486	6 (iii) The price per carbon mitigation credit to be
7487	7487	7 paid under a contract for a given delivery year shall
7488	7488	8 be equal to an accepted bid price less the sum of:
7489	7489	9 (I) one of the following energy price indices,
7490	7490	10 selected by the bidder at the time of the bid for
7491	7491	11 the term of the contract:
7492	7492	12 (aa) the weighted-average hourly day-ahead
7493	7493	13 price for the applicable delivery year at the
7494	7494	14 busbar of all resources procured pursuant to
7495	7495	15 this subsection (d-10), weighted by actual
7496	7496	16 production from the resources; or
7497	7497	17 (bb) the projected energy price for the
7498	7498	18 PJM Interconnection, LLC Northern Illinois Hub
7499	7499	19 for the applicable delivery year determined
7500	7500	20 according to subitem (aa) of item (iii) of
7501	7501	21 subparagraph (B) of paragraph (1) of
7502	7502	22 subsection (d-5).
7503	7503	23 (II) the Base Residual Auction Capacity Price
7504	7504	24 for the ComEd zone as determined by PJM
7505	7505	25 Interconnection, LLC, divided by 24 hours per day,
7506	7506	26 for the applicable delivery year for the first 3
7507	7507
7508	7508
7509	7509
7510	7510
7511	7511
7512	7512	SB2497 - 208 - LRB104 12224 JDS 22330 b
7513	7513
7514	7514
7515	7515	SB2497- 209 -LRB104 12224 JDS 22330 b SB2497 - 209 - LRB104 12224 JDS 22330 b
7516	7516	SB2497 - 209 - LRB104 12224 JDS 22330 b
7517	7517	1 delivery years, and then any subsequent delivery
7518	7518	2 years unless the PJM Interconnection, LLC applies
7519	7519	3 the Minimum Offer Price Rule to participating
7520	7520	4 carbon-free energy resources because they supply
7521	7521	5 carbon mitigation credits pursuant to this Section
7522	7522	6 at which time, upon notice by the carbon-free
7523	7523	7 energy resource to the Commission and subject to
7524	7524	8 the Commission's confirmation, the value under
7525	7525	9 this subitem shall be zero, as further described
7526	7526	10 in the carbon mitigation credit procurement plan;
7527	7527	11 and
7528	7528	12 (III) any value of monetized federal tax
7529	7529	13 credits, direct payments, or similar subsidy
7530	7530	14 provided to the carbon-free energy resource from
7531	7531	15 any unit of government that is not already
7532	7532	16 reflected in energy prices.
7533	7533	17 If the price-per-megawatt-hour calculation
7534	7534	18 performed under item (iii) of this subparagraph (C)
7535	7535	19 for a given delivery year results in a net positive
7536	7536	20 value, then the electric utility counterparty to the
7537	7537	21 contract shall multiply such net value by the
7538	7538	22 applicable contract quantity and remit the amount to
7539	7539	23 the supplier.
7540	7540	24 To protect retail customers from retail rate
7541	7541	25 impacts that may arise upon the initiation of carbon
7542	7542	26 policy changes, if the price-per-megawatt-hour
7543	7543
7544	7544
7545	7545
7546	7546
7547	7547
7548	7548	SB2497 - 209 - LRB104 12224 JDS 22330 b
7549	7549
7550	7550
7551	7551	SB2497- 210 -LRB104 12224 JDS 22330 b SB2497 - 210 - LRB104 12224 JDS 22330 b
7552	7552	SB2497 - 210 - LRB104 12224 JDS 22330 b
7553	7553	1 calculation performed under item (iii) of this
7554	7554	2 subparagraph (C) for a given delivery year results in
7555	7555	3 a net negative value, then the supplier counterparty
7556	7556	4 to the contract shall multiply such net value by the
7557	7557	5 applicable contract quantity and remit such amount to
7558	7558	6 the electric utility counterparty. The electric
7559	7559	7 utility shall reflect such amounts remitted by
7560	7560	8 suppliers as a credit on its retail customer bills as
7561	7561	9 soon as practicable.
7562	7562	10 (iv) To ensure that retail customers in Northern
7563	7563	11 Illinois do not pay more for carbon mitigation credits
7564	7564	12 than the value such credits provide, and
7565	7565	13 notwithstanding the provisions of this subsection
7566	7566	14 (d-10), the Agency shall not accept bids for contracts
7567	7567	15 that exceed a customer protection cap equal to the
7568	7568	16 baseline costs of carbon-free energy resources.
7569	7569	17 The baseline costs for the applicable year shall
7570	7570	18 be the following:
7571	7571	19 (I) For the delivery year beginning June 1,
7572	7572	20 2022, the baseline costs shall be an amount equal
7573	7573	21 to $30.30 per megawatt-hour.
7574	7574	22 (II) For the delivery year beginning June 1,
7575	7575	23 2023, the baseline costs shall be an amount equal
7576	7576	24 to $32.50 per megawatt-hour.
7577	7577	25 (III) For the delivery year beginning June 1,
7578	7578	26 2024, the baseline costs shall be an amount equal
7579	7579
7580	7580
7581	7581
7582	7582
7583	7583
7584	7584	SB2497 - 210 - LRB104 12224 JDS 22330 b
7585	7585
7586	7586
7587	7587	SB2497- 211 -LRB104 12224 JDS 22330 b SB2497 - 211 - LRB104 12224 JDS 22330 b
7588	7588	SB2497 - 211 - LRB104 12224 JDS 22330 b
7589	7589	1 to $33.43 per megawatt-hour.
7590	7590	2 (IV) For the delivery year beginning June 1,
7591	7591	3 2025, the baseline costs shall be an amount equal
7592	7592	4 to $33.50 per megawatt-hour.
7593	7593	5 (V) For the delivery year beginning June 1,
7594	7594	6 2026, the baseline costs shall be an amount equal
7595	7595	7 to $34.50 per megawatt-hour.
7596	7596	8 An Environmental Protection Agency consultant
7597	7597	9 forecast, included in a report issued April 14, 2021,
7598	7598	10 projects that a carbon-free energy resource has the
7599	7599	11 opportunity to earn on average approximately $30.28
7600	7600	12 per megawatt-hour, for the sale of energy and capacity
7601	7601	13 during the time period between 2022 and 2027.
7602	7602	14 Therefore, the sale of carbon mitigation credits
7603	7603	15 provides the opportunity to receive an additional
7604	7604	16 amount per megawatt-hour in addition to the projected
7605	7605	17 prices for energy and capacity.
7606	7606	18 Although actual energy and capacity prices may
7607	7607	19 vary from year-to-year, the General Assembly finds
7608	7608	20 that this customer protection cap will help ensure
7609	7609	21 that the cost of carbon mitigation credits will be
7610	7610	22 less than its value, based upon the social cost of
7611	7611	23 carbon identified in the Technical Support Document
7612	7612	24 issued in February 2021 by the U.S. Interagency
7613	7613	25 Working Group on Social Cost of Greenhouse Gases and
7614	7614	26 the PJM Interconnection, LLC carbon dioxide marginal
7615	7615
7616	7616
7617	7617
7618	7618
7619	7619
7620	7620	SB2497 - 211 - LRB104 12224 JDS 22330 b
7621	7621
7622	7622
7623	7623	SB2497- 212 -LRB104 12224 JDS 22330 b SB2497 - 212 - LRB104 12224 JDS 22330 b
7624	7624	SB2497 - 212 - LRB104 12224 JDS 22330 b
7625	7625	1 emission rate for 2020, and that a carbon-free energy
7626	7626	2 resource receiving payment for carbon mitigation
7627	7627	3 credits receives no more than necessary to keep those
7628	7628	4 units in operation.
7629	7629	5 (D) No later than 7 days after the effective date of
7630	7630	6 this amendatory Act of the 102nd General Assembly, the
7631	7631	7 Agency shall publish its proposed carbon mitigation credit
7632	7632	8 procurement plan. The Plan shall provide that winning bids
7633	7633	9 shall be selected by taking into consideration which
7634	7634	10 resources best match public interest criteria that
7635	7635	11 include, but are not limited to, minimizing carbon dioxide
7636	7636	12 emissions that result from electricity consumed in
7637	7637	13 Illinois and minimizing sulfur dioxide, nitrogen oxide,
7638	7638	14 and particulate matter emissions that adversely affect the
7639	7639	15 citizens of this State. The selection of winning bids
7640	7640	16 shall also take into account the incremental environmental
7641	7641	17 benefits resulting from the procurement or procurements,
7642	7642	18 such as any existing environmental benefits that are
7643	7643	19 preserved by a procurement held under this subsection
7644	7644	20 (d-10) and would cease to exist if the procurement were
7645	7645	21 not held, including the preservation of carbon-free energy
7646	7646	22 resources. For those bidders having the same public
7647	7647	23 interest criteria score, the relative ranking of such
7648	7648	24 bidders shall be determined by price. The Plan shall
7649	7649	25 describe in detail how each public interest factor shall
7650	7650	26 be considered and weighted in the bid selection process to
7651	7651
7652	7652
7653	7653
7654	7654
7655	7655
7656	7656	SB2497 - 212 - LRB104 12224 JDS 22330 b
7657	7657
7658	7658
7659	7659	SB2497- 213 -LRB104 12224 JDS 22330 b SB2497 - 213 - LRB104 12224 JDS 22330 b
7660	7660	SB2497 - 213 - LRB104 12224 JDS 22330 b
7661	7661	1 ensure that the public interest criteria are applied to
7662	7662	2 the procurement. The Plan shall, to the extent practical
7663	7663	3 and permissible by federal law, ensure that successful
7664	7664	4 bidders make commercially reasonable efforts to apply for
7665	7665	5 federal tax credits, direct payments, or similar subsidy
7666	7666	6 programs that support carbon-free generation and for which
7667	7667	7 the successful bidder is eligible. Upon publishing of the
7668	7668	8 carbon mitigation credit procurement plan, copies of the
7669	7669	9 plan shall be posted and made publicly available on the
7670	7670	10 Agency's website. All interested parties shall have 7 days
7671	7671	11 following the date of posting to provide comment to the
7672	7672	12 Agency on the plan. All comments shall be posted to the
7673	7673	13 Agency's website. Following the end of the comment period,
7674	7674	14 but no more than 19 days later than the effective date of
7675	7675	15 this amendatory Act of the 102nd General Assembly, the
7676	7676	16 Agency shall revise the plan as necessary based on the
7677	7677	17 comments received and file its carbon mitigation credit
7678	7678	18 procurement plan with the Commission.
7679	7679	19 (E) If the Commission determines that the plan is
7680	7680	20 likely to result in the procurement of cost-effective
7681	7681	21 carbon mitigation credits, then the Commission shall,
7682	7682	22 after notice and hearing and opportunity for comment, but
7683	7683	23 no later than 42 days after the Agency filed the plan,
7684	7684	24 approve the plan or approve it with modification. For
7685	7685	25 purposes of this subsection (d-10), "cost-effective" means
7686	7686	26 carbon mitigation credits that are procured from
7687	7687
7688	7688
7689	7689
7690	7690
7691	7691
7692	7692	SB2497 - 213 - LRB104 12224 JDS 22330 b
7693	7693
7694	7694
7695	7695	SB2497- 214 -LRB104 12224 JDS 22330 b SB2497 - 214 - LRB104 12224 JDS 22330 b
7696	7696	SB2497 - 214 - LRB104 12224 JDS 22330 b
7697	7697	1 carbon-free energy resources at prices that are within the
7698	7698	2 limits specified in this paragraph (3). As part of the
7699	7699	3 Commission's review and acceptance or rejection of the
7700	7700	4 procurement results, the Commission shall, in its public
7701	7701	5 notice of successful bidders:
7702	7702	6 (i) identify how the selected carbon-free energy
7703	7703	7 resources satisfy the public interest criteria
7704	7704	8 described in this paragraph (3) of minimizing carbon
7705	7705	9 dioxide emissions that result from electricity
7706	7706	10 consumed in Illinois and minimizing sulfur dioxide,
7707	7707	11 nitrogen oxide, and particulate matter emissions that
7708	7708	12 adversely affect the citizens of this State;
7709	7709	13 (ii) specifically address how the selection of
7710	7710	14 carbon-free energy resources takes into account the
7711	7711	15 incremental environmental benefits resulting from the
7712	7712	16 procurement, including any existing environmental
7713	7713	17 benefits that are preserved by the procurements held
7714	7714	18 under this amendatory Act of the 102nd General
7715	7715	19 Assembly and would have ceased to exist if the
7716	7716	20 procurements had not been held, such as the
7717	7717	21 preservation of carbon-free energy resources;
7718	7718	22 (iii) quantify the environmental benefit of
7719	7719	23 preserving the carbon-free energy resources procured
7720	7720	24 pursuant to this subsection (d-10), including the
7721	7721	25 following:
7722	7722	26 (I) an assessment value of avoided greenhouse
7723	7723
7724	7724
7725	7725
7726	7726
7727	7727
7728	7728	SB2497 - 214 - LRB104 12224 JDS 22330 b
7729	7729
7730	7730
7731	7731	SB2497- 215 -LRB104 12224 JDS 22330 b SB2497 - 215 - LRB104 12224 JDS 22330 b
7732	7732	SB2497 - 215 - LRB104 12224 JDS 22330 b
7733	7733	1 gas emissions measured as the product of the
7734	7734	2 carbon-free energy resources' output over the
7735	7735	3 contract term, using generally accepted
7736	7736	4 methodologies for the valuation of avoided
7737	7737	5 emissions; and
7738	7738	6 (II) an assessment of costs of replacement
7739	7739	7 with other carbon-free energy resources and
7740	7740	8 renewable energy resources, including wind and
7741	7741	9 photovoltaic generation, based upon an assessment
7742	7742	10 of the prices paid for renewable energy credits
7743	7743	11 through programs and procurements conducted
7744	7744	12 pursuant to subsection (c) of Section 1-75 of this
7745	7745	13 Act, and the additional storage necessary to
7746	7746	14 produce the same or similar capability of matching
7747	7747	15 customer usage patterns.
7748	7748	16 (F) The procurements described in this paragraph (3),
7749	7749	17 including, but not limited to, the execution of all
7750	7750	18 contracts procured, shall be completed no later than
7751	7751	19 December 3, 2021. The procurement and plan approval
7752	7752	20 processes required by this paragraph (3) shall be
7753	7753	21 conducted in conjunction with the procurement and plan
7754	7754	22 approval processes required by Section 16-111.5 of the
7755	7755	23 Public Utilities Act, to the extent practicable. However,
7756	7756	24 the Agency and Commission may, as appropriate, modify the
7757	7757	25 various dates and timelines under this subparagraph and
7758	7758	26 subparagraphs (D) and (E) of this paragraph (3) to meet
7759	7759
7760	7760
7761	7761
7762	7762
7763	7763
7764	7764	SB2497 - 215 - LRB104 12224 JDS 22330 b
7765	7765
7766	7766
7767	7767	SB2497- 216 -LRB104 12224 JDS 22330 b SB2497 - 216 - LRB104 12224 JDS 22330 b
7768	7768	SB2497 - 216 - LRB104 12224 JDS 22330 b
7769	7769	1 the December 3, 2021 contract execution deadline.
7770	7770	2 Following the completion of such procurements, and
7771	7771	3 consistent with this paragraph (3), the Agency shall
7772	7772	4 calculate the payments to be made under each contract in a
7773	7773	5 timely fashion.
7774	7774	6 (F-1) Costs incurred by the electric utility pursuant
7775	7775	7 to a contract authorized by this subsection (d-10) shall
7776	7776	8 be deemed prudently incurred and reasonable in amount, and
7777	7777	9 the electric utility shall be entitled to full cost
7778	7778	10 recovery pursuant to a tariff or tariffs filed with the
7779	7779	11 Commission.
7780	7780	12 (G) The counterparty electric utility shall retire all
7781	7781	13 carbon mitigation credits used to comply with the
7782	7782	14 requirements of this subsection (d-10).
7783	7783	15 (H) If a carbon-free energy resource is sold to
7784	7784	16 another owner, the rights, obligations, and commitments
7785	7785	17 under this subsection (d-10) shall continue to the
7786	7786	18 subsequent owner.
7787	7787	19 (I) This subsection (d-10) shall become inoperative on
7788	7788	20 January 1, 2028.
7789	7789	21 (e) The draft procurement plans are subject to public
7790	7790	22 comment, as required by Section 16-111.5 of the Public
7791	7791	23 Utilities Act.
7792	7792	24 (f) The Agency shall submit the final procurement plan to
7793	7793	25 the Commission. The Agency shall revise a procurement plan if
7794	7794	26 the Commission determines that it does not meet the standards
7795	7795
7796	7796
7797	7797
7798	7798
7799	7799
7800	7800	SB2497 - 216 - LRB104 12224 JDS 22330 b
7801	7801
7802	7802
7803	7803	SB2497- 217 -LRB104 12224 JDS 22330 b SB2497 - 217 - LRB104 12224 JDS 22330 b
7804	7804	SB2497 - 217 - LRB104 12224 JDS 22330 b
7805	7805	1 set forth in Section 16-111.5 of the Public Utilities Act.
7806	7806	2 (g) The Agency shall assess fees to each affected utility
7807	7807	3 to recover the costs incurred in preparation of the annual
7808	7808	4 procurement plan for the utility.
7809	7809	5 (h) The Agency shall assess fees to each bidder to recover
7810	7810	6 the costs incurred in connection with a competitive
7811	7811	7 procurement process.
7812	7812	8 (i) A renewable energy credit, carbon emission credit,
7813	7813	9 zero emission credit, or carbon mitigation credit can only be
7814	7814	10 used once to comply with a single portfolio or other standard
7815	7815	11 as set forth in subsection (c), subsection (d), or subsection
7816	7816	12 (d-5) of this Section, respectively. A renewable energy
7817	7817	13 credit, carbon emission credit, zero emission credit, or
7818	7818	14 carbon mitigation credit cannot be used to satisfy the
7819	7819	15 requirements of more than one standard. If more than one type
7820	7820	16 of credit is issued for the same megawatt hour of energy, only
7821	7821	17 one credit can be used to satisfy the requirements of a single
7822	7822	18 standard. After such use, the credit must be retired together
7823	7823	19 with any other credits issued for the same megawatt hour of
7824	7824	20 energy.
7825	7825	21 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
7826	7826	22 103-580, eff. 12-8-23.)
7827	7827	23 (20 ILCS 3855/1-93 new)
7828	7828	24 Sec. 1-93. Energy storage resource procurements.
7829	7829	25 (a) The Agency shall develop a storage procurement plan 20
7830	7830
7831	7831
7832	7832
7833	7833
7834	7834
7835	7835	SB2497 - 217 - LRB104 12224 JDS 22330 b
7836	7836
7837	7837
7838	7838	SB2497- 218 -LRB104 12224 JDS 22330 b SB2497 - 218 - LRB104 12224 JDS 22330 b
7839	7839	SB2497 - 218 - LRB104 12224 JDS 22330 b
7840	7840	1 that results in electric utilities contracting for energy
7841	7841	2 storage resources in the 21 following amounts:
7842	7842	3 (1) at least 1,500 megawatts of cumulative energy
7843	7843	4 storage capacity in the initial forward procurement
7844	7844	5 described in paragraph (2) of this subsection (a)
7845	7845	6 (2) at least 3,500 megawatts of cumulative energy
7846	7846	7 storage capacity by the end of delivery year 2026-27,
7847	7847	8 (3) at least 6,000 megawatts of cumulative energy
7848	7848	9 storage capacity by delivery year 2028-29,
7849	7849	10 (4) at least 9,000 megawatts of cumulative energy
7850	7850	11 storage capacity by delivery year 2030-31.
7851	7851	12 (5) at least 12,000 megawatts of cumulative energy
7852	7852	13 storage capacity by delivery year 2032-33; and
7853	7853	14 (6) at least 15,000 megawatts of cumulative energy
7854	7854	15 storage capacity by delivery year 2034-35
7855	7855	16 (b)(1) Within 180 days after the effective date of this
7856	7856	17 amendatory Act of the 104th General Assembly, the Agency shall
7857	7857	18 develop an energy storage procurement plan in accordance with
7858	7858	19 this Section and Section 16-111.5 of the Public Utilities Act.
7859	7859	20 (2) Initial forward procurement. Notwithstanding
7860	7860	21 anything to the contrary in this Section, the Agency shall
7861	7861	22 within the timeframes set forth in this paragraph (2)
7862	7862	23 procure not less than 1,500 megawatts of energy storage
7863	7863	24 resources
7864	7864	25 (A) Schedule and timing. The Agency shall
7865	7865	26 undertake each of the following steps not later than
7866	7866
7867	7867
7868	7868
7869	7869
7870	7870
7871	7871	SB2497 - 218 - LRB104 12224 JDS 22330 b
7872	7872
7873	7873
7874	7874	SB2497- 219 -LRB104 12224 JDS 22330 b SB2497 - 219 - LRB104 12224 JDS 22330 b
7875	7875	SB2497 - 219 - LRB104 12224 JDS 22330 b
7876	7876	1 the following number of days after the effective date
7877	7877	2 of this amendatory Act of the 104rd General Assembly:
7878	7878	3 (i) Within 15 days, the procurement
7879	7879	4 administrator, in consultation with the electric
7880	7880	5 utilities, the Commission, and representatives of
7881	7881	6 two national or regional organizations
7882	7882	7 representing the interests of the storage industry
7883	7883	8 appointed by the Agency shall negotiate a standard
7884	7884	9 contract. If the procurement administrator cannot
7885	7885	10 reach agreement with the electric utilities or the
7886	7886	11 representatives of the storage industry, as to the
7887	7887	12 contract terms and conditions, the procurement
7888	7888	13 administrator must notify the Commission of any
7889	7889	14 disputed terms and the Commission shall resolve
7890	7890	15 the dispute;
7891	7891	16 (ii) Not later than August 26, 2025, the
7892	7892	17 procurement administrator shall close any period
7893	7893	18 available to submit price and quantity bids and
7894	7894	19 open sealed bids; and
7895	7895	20 (iii) the Commission, the procurement monitor,
7896	7896	21 the procurement administrator, and utilities shall
7897	7897	22 follow the processes and timelines set out in
7898	7898	23 subsections (f) and (g) of Section 16-111.5 of the
7899	7899	24 Public Utilities Act.
7900	7900	25 (B) For the purposes of this initial forward
7901	7901	26 procurement, the Agency shall procure energy storage
7902	7902
7903	7903
7904	7904
7905	7905
7906	7906
7907	7907	SB2497 - 219 - LRB104 12224 JDS 22330 b
7908	7908
7909	7909
7910	7910	SB2497- 220 -LRB104 12224 JDS 22330 b SB2497 - 220 - LRB104 12224 JDS 22330 b
7911	7911	SB2497 - 220 - LRB104 12224 JDS 22330 b
7912	7912	1 resources totaling 1,500 megawatts for projects
7913	7913	2 committed to reaching commercial operation date on or
7914	7914	3 before December 31, 2029, subject to extension for
7915	7915	4 delay due to interconnection of the energy storage
7916	7916	5 system, delay in obtaining permits necessary to build
7917	7917	6 or operate the energy storage system, or other project
7918	7918	7 delays not primarily caused by the winning bidder or
7919	7919	8 other circumstances in the discretion of the Agency.
7920	7920	9 The Agency shall endeavor to select bids in this
7921	7921	10 initial forward procurement such that:
7922	7922	11 (i) approximately 750 megawatts are
7923	7923	12 interconnected to Midcontinent ISO, Inc.;
7924	7924	13 (ii) approximately 750 megawatts are
7925	7925	14 interconnected to PJM Interconnection, LLC Of the
7926	7926	15 750 megawatts procured under this subparagraph
7927	7927	16 (ii), at least 150 megawatts shall be located
7928	7928	17 within a city with population of more than
7929	7929	18 2,000,000 as of the effective date of the
7930	7930	19 Amendatory Act of the 104th General Assembly and
7931	7931	20 interconnected with PJM Interconnection, LLC.
7932	7932	21 (iii) If the Agency does not receive
7933	7933	22 sufficient cost-effective bids to achieve any of
7934	7934	23 the targets in this paragraph (2), the Agency
7935	7935	24 shall accept other cost-effective bids without
7936	7936	25 regard to the limitations in items (i) and (ii) of
7937	7937	26 this subparagraph (B). If, following the action
7938	7938
7939	7939
7940	7940
7941	7941
7942	7942
7943	7943	SB2497 - 220 - LRB104 12224 JDS 22330 b
7944	7944
7945	7945
7946	7946	SB2497- 221 -LRB104 12224 JDS 22330 b SB2497 - 221 - LRB104 12224 JDS 22330 b
7947	7947	SB2497 - 221 - LRB104 12224 JDS 22330 b
7948	7948	1 described in the preceding sentence, the Agency
7949	7949	2 has procured less than 1,000 MW of energy storage
7950	7950	3 systems, the Agency shall repeat the steps set out
7951	7951	4 in subparagraph (A) of this paragraph (2),
7952	7952	5 provided that the Agency shall also take comment
7953	7953	6 regarding calculation of the benchmark. If,
7954	7954	7 following the process described in the preceding
7955	7955	8 sentence, the Agency has still not procured 1,500
7956	7956	9 MW of energy storage systems, the Agency shall
7957	7957	10 procure the uncontracted capacity in its next
7958	7958	11 procurement authorized under this Section.
7959	7959	12 (iv) The Agency shall require bidders to
7960	7960	13 demonstrate experience bringing utility-scale
7961	7961	14 energy storage facilities to commercial readiness.
7962	7962	15 (C) For the purposes of this initial forward
7963	7963	16 procurement only, the Agency shall require bidders to
7964	7964	17 have achieved the following interconnection milestones
7965	7965	18 unless approved under surplus interconnection service
7966	7966	19 from MISO or PJM: (i) for projects interconnected to
7967	7967	20 MISO, projects must have received a system impact
7968	7968	21 study; and (ii) for projects interconnected to PJM,
7969	7969	22 projects that have received a Phase 2 study.
7970	7970	23 (D) Notwithstanding anything to the contrary, the
7971	7971	24 requirements of subsections (d), (h), (j), (k), (l),
7972	7972	25 and (m) shall apply to this initial forward
7973	7973	26 procurement. In addition, each bidder shall
7974	7974
7975	7975
7976	7976
7977	7977
7978	7978
7979	7979	SB2497 - 221 - LRB104 12224 JDS 22330 b
7980	7980
7981	7981
7982	7982	SB2497- 222 -LRB104 12224 JDS 22330 b SB2497 - 222 - LRB104 12224 JDS 22330 b
7983	7983	SB2497 - 222 - LRB104 12224 JDS 22330 b
7984	7984	1 demonstrate binding site control (including an option
7985	7985	2 to lease or purchase) sufficient for the associated
7986	7986	3 energy storage device or devices.
7987	7987	4 (c) The Agency shall select bids based on the bid price
7988	7988	5 when compared with equal energy storage duration and
7989	7989	6 interconnected to the same independent system operator or
7990	7990	7 regional transmission organization, and may give consideration
7991	7991	8 to project viability and developer experience. For the
7992	7992	9 purposes of this subsection:
7993	7993	10 (1) For indexed energy storage credit procurements,
7994	7994	11 the purchase price of the indexed energy storage credit
7995	7995	12 payment shall be calculated for each day. The payment per
7996	7996	13 energy storage credit shall be equal to the difference
7997	7997	14 resulting from subtracting from the energy storage strike
7998	7998	15 price the sum of the daily energy volatility index and the
7999	7999	16 reference capacity price for that day. If this difference
8000	8000	17 results in a positive number, the electric utility shall
8001	8001	18 owe the seller this amount multiplied by the number of
8002	8002	19 indexed energy storage credits produced on the relevant
8003	8003	20 day. If this difference results in a negative number, the
8004	8004	21 settlement shall be zero. The parties shall cash settle
8005	8005	22 every month, summing up all settlements for the prior
8006	8006	23 month.
8007	8007	24 (2) For tolling agreements, the purchase price shall
8008	8008	25 be the tolling rate as bid by the winning bidder.
8009	8009	26 (3) For pricing structures that are neither indexed
8010	8010
8011	8011
8012	8012
8013	8013
8014	8014
8015	8015	SB2497 - 222 - LRB104 12224 JDS 22330 b
8016	8016
8017	8017
8018	8018	SB2497- 223 -LRB104 12224 JDS 22330 b SB2497 - 223 - LRB104 12224 JDS 22330 b
8019	8019	SB2497 - 223 - LRB104 12224 JDS 22330 b
8020	8020	1 credits nor tolling agreements, the Agency, after
8021	8021	2 consideration of feedback from potential bidders and in
8022	8022	3 consideration of financiability, shall develop
8023	8023	4 methodologies for pricing structure and bidding
8024	8024	5 procedures.
8025	8025	6 For the purposes of this subsection:
8026	8026	7 "Developer experience" means the experience of a bidder or
8027	8027	8 its affiliates assessed by the Agency, including based on
8028	8028	9 quantity of energy projects brought to commercial operation,
8029	8029	10 quantity of energy projects under ownership, and awards of
8030	8030	11 incentive contracts, including under any program or
8031	8031	12 procurement administered by the Agency.
8032	8032	13 "Project viability" means an assessment by the Agency, for
8033	8033	14 the purposes of bid evaluation, of the project's potential to
8034	8034	15 reach commercial operation as assessed by standards developed
8035	8035	16 by the Agency regarding permitting milestones, interconnection
8036	8036	17 milestones, and site control milestones.
8037	8037	18 (d) All procurements under this Section shall comply with
8038	8038	19 the geographic requirements in subparagraph (I) of paragraph
8039	8039	20 (1) of subsection (c) of Section 1-75 and shall follow the
8040	8040	21 procurement processes and procedures described in this Section
8041	8041	22 and Section 16-111.5 of the Public Utilities Act, to the
8042	8042	23 extent practicable, and these processes and procedures may be
8043	8043	24 expedited to accommodate the schedule established by this
8044	8044	25 Section. The Agency shall require all bidders to pay to the
8045	8045	26 Agency a nonrefundable deposit of $10,000 per bid. Bidders
8046	8046
8047	8047
8048	8048
8049	8049
8050	8050
8051	8051	SB2497 - 223 - LRB104 12224 JDS 22330 b
8052	8052
8053	8053
8054	8054	SB2497- 224 -LRB104 12224 JDS 22330 b SB2497 - 224 - LRB104 12224 JDS 22330 b
8055	8055	SB2497 - 224 - LRB104 12224 JDS 22330 b
8056	8056	1 shall also demonstrate experience developing commercial
8057	8057	2 readiness. The winning bidders shall comply with the
8058	8058	3 prevailing wage requirements in subparagraph (Q) of paragraph
8059	8059	4 (1) of subsection (c) of Section 1-75 and the equity
8060	8060	5 accountability system requirements in subsection (c-10) of
8061	8061	6 Section 1-75. As used in this subsection (d), "developing to
8062	8062	7 commercial readiness" means having notice to proceed, owning,
8063	8063	8 or operating energy facilities with a combined nameplate
8064	8064	9 capacity of at least 100 megawatts.
8065	8065	10 (e) No later than December 31, 2026, and every 2 years
8066	8066	11 thereafter, the Agency shall conduct an analysis to determine
8067	8067	12 whether the contracted quantity of energy storage in energy
8068	8068	13 storage capacity and energy storage duration is sufficient to
8069	8069	14 support the State's renewable energy standards and carbon
8070	8070	15 emission standards. To conduct the analysis, the Agency shall
8071	8071	16 retain an independent consultant with experience in wholesale
8072	8072	17 electric system modeling in PJM and MISO and may seek the
8073	8073	18 support of the United States Department of Energy and National
8074	8074	19 Labs to conduct its analysis. The independent consultant shall
8075	8075	20 use a production cost model, capacity expansion model, or
8076	8076	21 similar comprehensive analysis of the electricity systems and
8077	8077	22 shall provide opportunities for stakeholders to provide
8078	8078	23 feedback on the scope, inputs, and assumptions used in the
8079	8079	24 analysis. The Agency is authorized to collect costs for
8080	8080	25 conducting the analysis from electric utilities. The electric
8081	8081	26 utilities are authorized to recover the cost of the analysis
8082	8082
8083	8083
8084	8084
8085	8085
8086	8086
8087	8087	SB2497 - 224 - LRB104 12224 JDS 22330 b
8088	8088
8089	8089
8090	8090	SB2497- 225 -LRB104 12224 JDS 22330 b SB2497 - 225 - LRB104 12224 JDS 22330 b
8091	8091	SB2497 - 225 - LRB104 12224 JDS 22330 b
8092	8092	1 as part of the recovery of the cost of energy storage credits,
8093	8093	2 as authorized in this Section and Section 16-108 of the Public
8094	8094	3 Utilities Act. If the Agency determines that the need for
8095	8095	4 energy storage capacity or energy storage duration is greater
8096	8096	5 than the energy storage credit target in this Section, the
8097	8097	6 Agency shall establish, and the Commission shall approve, new
8098	8098	7 energy storage credit targets to meet the identified need. If
8099	8099	8 the Agency determines that deployment of energy storage beyond
8100	8100	9 2030 will not be achieved through wholesale market prices and
8101	8101	10 other energy storage programs established by the State, the
8102	8102	11 Agency shall establish additional targets for years beyond
8103	8103	12 2030.
8104	8104	13 (f) The Agency shall include in the long-term procurement
8105	8105	14 plan the energy storage duration of energy storage systems
8106	8106	15 from which the Agency shall procure energy storage credits.
8107	8107	16 Informed by the analysis described in subsection (e), when
8108	8108	17 available, the Agency shall designate the energy storage
8109	8109	18 duration or durations and the amount of energy storage
8110	8110	19 capacity at each duration from which the Agency intends to
8111	8111	20 procure energy storage credits. The long-term procurement plan
8112	8112	21 shall further propose allocation of procurements between
8113	8113	22 indexed credits and tolling agreements, taking into
8114	8114	23 consideration factors including timely commercial operation of
8115	8115	24 storage resources.
8116	8116	25 (g) The Agency shall identify in the long-term procurement
8117	8117	26 plan the regional transmission organization or independent
8118	8118
8119	8119
8120	8120
8121	8121
8122	8122
8123	8123	SB2497 - 225 - LRB104 12224 JDS 22330 b
8124	8124
8125	8125
8126	8126	SB2497- 226 -LRB104 12224 JDS 22330 b SB2497 - 226 - LRB104 12224 JDS 22330 b
8127	8127	SB2497 - 226 - LRB104 12224 JDS 22330 b
8128	8128	1 system operator to which energy storage systems shall be
8129	8129	2 interconnected in order to be eligible to offer a strike price
8130	8130	3 for energy storage credits. For all solicitations prior to the
8131	8131	4 delivery year 2028, the Agency shall strive to procure at
8132	8132	5 least 70% of energy storage credits from energy storage
8133	8133	6 systems interconnected to MISO, and at least 10% of energy
8134	8134	7 storage credits from energy storage systems located within a
8135	8135	8 city with population of more than 1,000,000 people and
8136	8136	9 interconnected to PJM Interconnection, LLC. For solicitations
8137	8137	10 in the delivery year 2028 and thereafter, and informed by the
8138	8138	11 analysis described in subsection (e), the Agency shall
8139	8139	12 designate the regional transmission organization or
8140	8140	13 independent system operator to which energy storage systems
8141	8141	14 shall be interconnected in order to be eligible to offer a
8142	8142	15 strike price for energy storage credits. Following
8143	8143	16 solicitation and receipt of feedback from stakeholders
8144	8144	17 including potential bidders, the Agency shall propose in the
8145	8145	18 long-term procurement plan key terms and conditions of the
8146	8146	19 standard contracts for indexed credit and tolling agreements.
8147	8147	20 The key terms shall be designed to ensure the agreements are
8148	8148	21 financeable and to incentivize development.
8149	8149	22 (h) The Agency shall procure cost-effective energy storage
8150	8150	23 credits in at least the amounts identified in subsection (a).
8151	8151	24 The procurement administrator shall establish confidential
8152	8152	25 price benchmarks based on publicly available data on regional
8153	8153	26 technology costs. Confidential benchmarks shall be developed
8154	8154
8155	8155
8156	8156
8157	8157
8158	8158
8159	8159	SB2497 - 226 - LRB104 12224 JDS 22330 b
8160	8160
8161	8161
8162	8162	SB2497- 227 -LRB104 12224 JDS 22330 b SB2497 - 227 - LRB104 12224 JDS 22330 b
8163	8163	SB2497 - 227 - LRB104 12224 JDS 22330 b
8164	8164	1 by the procurement administrator, in consultation with
8165	8165	2 Commission staff, Agency staff, and the procurement monitor,
8166	8166	3 and shall be subject to Commission review and approval.
8167	8167	4 Benchmarks shall reflect development, financing, and related
8168	8168	5 costs resulting from requirements imposed through other
8169	8169	6 provisions of State law. As used in this subsection (h), "cost
8170	8170	7 effective" means that the energy storage credit strike price
8171	8171	8 does not exceed confidential benchmarks.
8172	8172	9 (i) When developing each storage procurement plan, upon
8173	8173	10 solicitation from stakeholders, the Agency shall consider
8174	8174	11 additional procurement approaches that would result in the
8175	8175	12 electric utilities contracting for energy storage to achieve
8176	8176	13 the requirements in subsection (a).
8177	8177	14 (j) For energy storage resources procured under this
8178	8178	15 Section, the bidders or the owner's engineering, procurement,
8179	8179	16 and construction contractor, of the energy storage resources
8180	8180	17 have entered, or commit to enter, into a project labor
8181	8181	18 agreement for the construction of the energy storage resource
8182	8182	19 consistent with subsection (j) and certify that not less than
8183	8183	20 the prevailing wage, as determined by the Illinois Prevailing
8184	8184	21 Wage Act, was or will be paid to employees who are engaged in
8185	8185	22 construction activities associated with the energy storage
8186	8186	23 resource consistent with subsection (j). The project labor
8187	8187	24 agreement shall be filed with 21 the Director in accordance
8188	8188	25 with procedures established by the Agency through its storage
8189	8189	26 procurement plan. Any information submitted to the Agency
8190	8190
8191	8191
8192	8192
8193	8193
8194	8194
8195	8195	SB2497 - 227 - LRB104 12224 JDS 22330 b
8196	8196
8197	8197
8198	8198	SB2497- 228 -LRB104 12224 JDS 22330 b SB2497 - 228 - LRB104 12224 JDS 22330 b
8199	8199	SB2497 - 228 - LRB104 12224 JDS 22330 b
8200	8200	1 under this subsection shall be considered commercially
8201	8201	2 sensitive information. At a minimum, the project labor
8202	8202	3 agreement must provide the names, addresses, and occupations
8203	8203	4 of the owner of the plant and the individuals representing the
8204	8204	5 labor organization employees participating in the project
8205	8205	6 labor agreement in accordance with the Project Labor
8206	8206	7 Agreements Act. The agreement must also specify the terms and
8207	8207	8 conditions as described in this Act.
8208	8208	9 (k) In order to promote the competitive development of
8209	8209	10 energy storage system in furtherance of the State's interest
8210	8210	11 in the health, safety, and welfare of its residents, storage
8211	8211	12 credits shall not be eligible to be selected under this
8212	8212	13 Section if they are sourced from an energy storage system
8213	8213	14 whose costs were being recovered through rates regulated by
8214	8214	15 this State or any other state or states on or after January 1,
8215	8215	16 2017. Each contract executed to purchase storage credits under
8216	8216	17 this Section shall provide for the contract's termination if
8217	8217	18 the costs of the energy storage system supplying the storage
8218	8218	19 credits subsequently begin to be recovered through rates
8219	8219	20 regulated by this State or any other state or states. Each
8220	8220	21 contract shall provide that, in the event the costs of the
8221	8221	22 energy storage system supplying the storage credits
8222	8222	23 subsequently begin to be recovered through rates regulated by
8223	8223	24 this State or any other state or states, the supplier of the
8224	8224	25 credits must return 110% of all payments received under the
8225	8225	26 contract. Amounts returned under the requirements of this
8226	8226
8227	8227
8228	8228
8229	8229
8230	8230
8231	8231	SB2497 - 228 - LRB104 12224 JDS 22330 b
8232	8232
8233	8233
8234	8234	SB2497- 229 -LRB104 12224 JDS 22330 b SB2497 - 229 - LRB104 12224 JDS 22330 b
8235	8235	SB2497 - 229 - LRB104 12224 JDS 22330 b
8236	8236	1 subsection shall be refunded to ratepayers. No entity shall be
8237	8237	2 permitted to bid unless it certifies to the Agency that it is
8238	8238	3 not an electric utility, as defined in Section 16-102 of the
8239	8239	4 Public Utilities Act, serving more than 10,000 customers in
8240	8240	5 the State.
8241	8241	6 (l) The Agency shall require that as a prerequisite to
8242	8242	7 payment for any storage credits that the winning bidder
8243	8243	8 provide the Agency or its designee a copy of the
8244	8244	9 interconnection agreement under which the applicable energy
8245	8245	10 storage system is connected to the transmission or
8246	8246	11 distribution system.
8247	8247	12 (m) To ensure the successful development of new energy
8248	8248	13 storage systems for procurements under this Section, a winning
8249	8249	14 bidder or the current seller under contract countersigned by
8250	8250	15 an electric utility counterparty may petition the Commission
8251	8251	16 to revise the terms in the contract. Prior to such petition,
8252	8252	17 upon request by the winning bidder or seller, the Agency shall
8253	8253	18 negotiate directly with the winning bidder or seller. If
8254	8254	19 following the direct negotiations, the Agency and the winning
8255	8255	20 bidder reach an agreement on amended terms or a strike price
8256	8256	21 and the Agency finds that the amended terms or strike price
8257	8257	22 reflect a change in circumstances since the date of the bid
8258	8258	23 based on circumstances unforeseeable at the time of the bid,
8259	8259	24 upon petition by the winning bidder or current seller, then
8260	8260	25 the Commission shall issue an order directing the utility
8261	8261	26 counterparty to execute a form amendment drafted by the Agency
8262	8262
8263	8263
8264	8264
8265	8265
8266	8266
8267	8267	SB2497 - 229 - LRB104 12224 JDS 22330 b
8268	8268
8269	8269
8270	8270	SB2497- 230 -LRB104 12224 JDS 22330 b SB2497 - 230 - LRB104 12224 JDS 22330 b
8271	8271	SB2497 - 230 - LRB104 12224 JDS 22330 b
8272	8272	1 with the revised terms or the strike price. The Agency shall
8273	8273	2 provide the amendment to the utility within 15 business days
8274	8274	3 after the Commission's order and the utility buyer shall
8275	8275	4 execute the amendment not more than 7 calendar days after
8276	8276	5 delivery by the Agency. The Agency shall develop the form
8277	8277	6 amendment following comment by interested parties.
8278	8278	7 (20 ILCS 3855/1-94 new)
8279	8279	8 Sec. 1-94. Firm energy resource procurement plan. The
8280	8280	9 Agency is authorized to develop and implement a firm energy
8281	8281	10 resource procurement plan for new resources, including
8282	8282	11 initiating proceedings and conducting competitive
8283	8283	12 solicitations to deploy new long-duration and multi-day energy
8284	8284	13 storage. The procurement plan shall ensure regular procurement
8285	8285	14 opportunities to deploy new long-duration and multi-day energy
8286	8286	15 storage resources by 2030 and shall ensure stable, competitive
8287	8287	16 resource development at a pace needed to ensure grid
8288	8288	17 reliability and resilience during atypical or extreme grid
8289	8289	18 conditions that may occur at least once in 20 years while
8290	8290	19 meeting the emissions requirements of Section 9.15 of the
8291	8291	20 Environmental Protection Act. The Agency's plan shall ensure
8292	8292	21 that a minimum of 4 new long-duration or multi-day energy
8293	8293	22 storage resources, each with a rated capacity greater than 20
8294	8294	23 megawatts, shall be deployed or contracted by the end of
8295	8295	24 delivery year 2026. Within one year after the effective date
8296	8296	25 of this amendatory Act of the 104th General Assembly, the
8297	8297
8298	8298
8299	8299
8300	8300
8301	8301
8302	8302	SB2497 - 230 - LRB104 12224 JDS 22330 b
8303	8303
8304	8304
8305	8305	SB2497- 231 -LRB104 12224 JDS 22330 b SB2497 - 231 - LRB104 12224 JDS 22330 b
8306	8306	SB2497 - 231 - LRB104 12224 JDS 22330 b
8307	8307	1 Agency shall develop a firm energy resource procurement plan
8308	8308	2 in accordance with this Section and Section 16-111.5 of the 1
8309	8309	3 Public Utilities Act.
8310	8310	4 Section 10. The Public Utilities Act is amended by
8311	8311	5 changing Sections 3-105, 16-102, 16-107.5, 16-107.6, 16-108,
8312	8312	6 16-111.5, and 16-115 and by adding Sections 8-513, 16-107.8,
8313	8313	7 16-107.9, 16-107.10, 16-107.11, and 16-136 and Article XXIII
8314	8314	8 as follows:
8315	8315	9 (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
8316	8316	10 Sec. 3-105. Public utility.
8317	8317	11 (a) "Public utility" means and includes, except where
8318	8318	12 otherwise expressly provided in this Section, every
8319	8319	13 corporation, company, limited liability company, association,
8320	8320	14 joint stock company or association, firm, partnership or
8321	8321	15 individual, their lessees, trustees, or receivers appointed by
8322	8322	16 any court whatsoever that owns, controls, operates or manages,
8323	8323	17 within this State, directly or indirectly, for public use, any
8324	8324	18 plant, equipment or property used or to be used for or in
8325	8325	19 connection with, or owns or controls any franchise, license,
8326	8326	20 permit or right to engage in:
8327	8327	21 (1) the production, storage, transmission, sale,
8328	8328	22 delivery or furnishing of heat, cold, power, electricity,
8329	8329	23 water, or light, except when used solely for
8330	8330	24 communications purposes;
8331	8331
8332	8332
8333	8333
8334	8334
8335	8335
8336	8336	SB2497 - 231 - LRB104 12224 JDS 22330 b
8337	8337
8338	8338
8339	8339	SB2497- 232 -LRB104 12224 JDS 22330 b SB2497 - 232 - LRB104 12224 JDS 22330 b
8340	8340	SB2497 - 232 - LRB104 12224 JDS 22330 b
8341	8341	1 (2) the disposal of sewerage; or
8342	8342	2 (3) the conveyance of oil or gas by pipe line.
8343	8343	3 (b) "Public utility" does not include, however:
8344	8344	4 (1) public utilities that are owned and operated by
8345	8345	5 any political subdivision, public institution of higher
8346	8346	6 education or municipal corporation of this State, or
8347	8347	7 public utilities that are owned by such political
8348	8348	8 subdivision, public institution of higher education, or
8349	8349	9 municipal corporation and operated by any of its lessees
8350	8350	10 or operating agents;
8351	8351	11 (2) water companies which are purely mutual concerns,
8352	8352	12 having no rates or charges for services, but paying the
8353	8353	13 operating expenses by assessment upon the members of such
8354	8354	14 a company and no other person;
8355	8355	15 (3) electric cooperatives as defined in Section 3-119;
8356	8356	16 (4) the following natural gas cooperatives:
8357	8357	17 (A) residential natural gas cooperatives that are
8358	8358	18 not-for-profit corporations established for the
8359	8359	19 purpose of administering and operating, on a
8360	8360	20 cooperative basis, the furnishing of natural gas to
8361	8361	21 residences for the benefit of their members who are
8362	8362	22 residential consumers of natural gas. For entities
8363	8363	23 qualifying as residential natural gas cooperatives and
8364	8364	24 recognized by the Illinois Commerce Commission as
8365	8365	25 such, the State shall guarantee legally binding
8366	8366	26 contracts entered into by residential natural gas
8367	8367
8368	8368
8369	8369
8370	8370
8371	8371
8372	8372	SB2497 - 232 - LRB104 12224 JDS 22330 b
8373	8373
8374	8374
8375	8375	SB2497- 233 -LRB104 12224 JDS 22330 b SB2497 - 233 - LRB104 12224 JDS 22330 b
8376	8376	SB2497 - 233 - LRB104 12224 JDS 22330 b
8377	8377	1 cooperatives for the express purpose of acquiring
8378	8378	2 natural gas supplies for their members. The Illinois
8379	8379	3 Commerce Commission shall establish rules and
8380	8380	4 regulations providing for such guarantees. The total
8381	8381	5 liability of the State in providing all such
8382	8382	6 guarantees shall not at any time exceed $1,000,000,
8383	8383	7 nor shall the State provide such a guarantee to a
8384	8384	8 residential natural gas cooperative for more than 3
8385	8385	9 consecutive years; and
8386	8386	10 (B) natural gas cooperatives that are
8387	8387	11 not-for-profit corporations operated for the purpose
8388	8388	12 of administering, on a cooperative basis, the
8389	8389	13 furnishing of natural gas for the benefit of their
8390	8390	14 members and that, prior to 90 days after the effective
8391	8391	15 date of this amendatory Act of the 94th General
8392	8392	16 Assembly, either had acquired or had entered into an
8393	8393	17 asset purchase agreement to acquire all or
8394	8394	18 substantially all of the operating assets of a public
8395	8395	19 utility or natural gas cooperative with the intention
8396	8396	20 of operating those assets as a natural gas
8397	8397	21 cooperative;
8398	8398	22 (5) sewage disposal companies which provide sewage
8399	8399	23 disposal services on a mutual basis without establishing
8400	8400	24 rates or charges for services, but paying the operating
8401	8401	25 expenses by assessment upon the members of the company and
8402	8402	26 no others;
8403	8403
8404	8404
8405	8405
8406	8406
8407	8407
8408	8408	SB2497 - 233 - LRB104 12224 JDS 22330 b
8409	8409
8410	8410
8411	8411	SB2497- 234 -LRB104 12224 JDS 22330 b SB2497 - 234 - LRB104 12224 JDS 22330 b
8412	8412	SB2497 - 234 - LRB104 12224 JDS 22330 b
8413	8413	1 (6) (blank);
8414	8414	2 (7) cogeneration facilities, small power production
8415	8415	3 facilities, and other qualifying facilities, as defined in
8416	8416	4 the Public Utility Regulatory Policies Act and regulations
8417	8417	5 promulgated thereunder, except to the extent State
8418	8418	6 regulatory jurisdiction and action is required or
8419	8419	7 authorized by federal law, regulations, regulatory
8420	8420	8 decisions or the decisions of federal or State courts of
8421	8421	9 competent jurisdiction;
8422	8422	10 (8) the ownership or operation of a facility that
8423	8423	11 sells compressed natural gas at retail to the public for
8424	8424	12 use only as a motor vehicle fuel and the selling of
8425	8425	13 compressed natural gas at retail to the public for use
8426	8426	14 only as a motor vehicle fuel;
8427	8427	15 (9) alternative retail electric suppliers as defined
8428	8428	16 in Article XVI; and
8429	8429	17 (10) the Illinois Power Agency.
8430	8430	18 (11) transmission co-location customers or
8431	8431	19 distribution co-location customers as defined in Article
8432	8432	20 XVI;
8433	8433	21 (c) An entity that furnishes the service of charging
8434	8434	22 electric vehicles does not and shall not be deemed to sell
8435	8435	23 electricity and is not and shall not be deemed a public utility
8436	8436	24 notwithstanding the basis on which the service is provided or
8437	8437	25 billed. If, however, the entity is otherwise deemed a public
8438	8438	26 utility under this Act, or is otherwise subject to regulation
8439	8439
8440	8440
8441	8441
8442	8442
8443	8443
8444	8444	SB2497 - 234 - LRB104 12224 JDS 22330 b
8445	8445
8446	8446
8447	8447	SB2497- 235 -LRB104 12224 JDS 22330 b SB2497 - 235 - LRB104 12224 JDS 22330 b
8448	8448	SB2497 - 235 - LRB104 12224 JDS 22330 b
8449	8449	1 under this Act, then that entity is not exempt from and remains
8450	8450	2 subject to the otherwise applicable provisions of this Act.
8451	8451	3 The installation, maintenance, and repair of an electric
8452	8452	4 vehicle charging station shall comply with the requirements of
8453	8453	5 subsection (a) of Section 16-128 and Section 16-128A of this
8454	8454	6 Act.
8455	8455	7 For purposes of this subsection, the term "electric
8456	8456	8 vehicles" has the meaning ascribed to that term in Section 10
8457	8457	9 of the Electric Vehicle Act.
8458	8458	10 (Source: P.A. 97-1128, eff. 8-28-12.)
8459	8459	11 (220 ILCS 5/8-513 new)
8460	8460	12 Sec. 8-513. Staffing adequacy.
8461	8461	13 (a) The General Assembly finds and declares that devotion
8462	8462	14 of adequate resources, including human resources and technical
8463	8463	15 resources, to interconnection of electric generation to the
8464	8464	16 electric distribution grid and transmission grid are necessary
8465	8465	17 to meeting the State's renewable energy goals, including the
8466	8466	18 goals set out in Section 1-75 of the Illinois Power Agency Act.
8467	8467	19 The General Assembly further finds that insufficient human
8468	8468	20 resources or inadequate systems, recordkeeping, or technical
8469	8469	21 ability to interconnection by electric utilities risks delays,
8470	8470	22 mistakes, and disputes under applicable interconnection
8471	8471	23 procedures.
8472	8472	24 (b) Each electric utility, as defined in Section 16-102,
8473	8473	25 shall demonstrate sufficient resources devoted to
8474	8474
8475	8475
8476	8476
8477	8477
8478	8478
8479	8479	SB2497 - 235 - LRB104 12224 JDS 22330 b
8480	8480
8481	8481
8482	8482	SB2497- 236 -LRB104 12224 JDS 22330 b SB2497 - 236 - LRB104 12224 JDS 22330 b
8483	8483	SB2497 - 236 - LRB104 12224 JDS 22330 b
8484	8484	1 interconnection.
8485	8485	2 (c) The Commission shall review in a contested proceeding
8486	8486	3 the compliance of each electric utility with the electric
8487	8487	4 utility's individual compliance with obligations under
8488	8488	5 subsection (b). If the Commission, after notice and hearing,
8489	8489	6 finds that an electric utility did not meet its obligations
8490	8490	7 under subsection (b), or is at risk of not meeting such
8491	8491	8 obligations in the future, the Commission may require the
8492	8492	9 electric utility to submit a compliance plan to meet such
8493	8493	10 obligations. The Commission shall approve or approve with
8494	8494	11 modifications a compliance plan if the Commission finds that
8495	8495	12 the compliance plan is likely to ensure compliance with the
8496	8496	13 electric utility's obligations under subsection (b), or likely
8497	8497	14 with modifications to ensure compliance.
8498	8498	15 (d) As used in this Section:
8499	8499	16 "Interconnection" means the steps to interconnect
8500	8500	17 electric generation fueled by renewable resources, energy
8501	8501	18 storage, or a combination of generation fueled by
8502	8502	19 renewable resources and storage under procedures set out
8503	8503	20 in this Act, rules adopted by the Commission, PJM
8504	8504	21 Interconnection, Inc. or its successor, or Midcontinent
8505	8505	22 Independent System Operator or its successor.
8506	8506	23 "Resources" means the combination of employees,
8507	8507	24 independent contractors, vendors, and systems and software
8508	8508	25 that directly support interconnection but shall not
8509	8509	26 include the transformers, reclosers, line, and similar
8510	8510
8511	8511
8512	8512
8513	8513
8514	8514
8515	8515	SB2497 - 236 - LRB104 12224 JDS 22330 b
8516	8516
8517	8517
8518	8518	SB2497- 237 -LRB104 12224 JDS 22330 b SB2497 - 237 - LRB104 12224 JDS 22330 b
8519	8519	SB2497 - 237 - LRB104 12224 JDS 22330 b
8520	8520	1 physical assets used to connect or upgrade the
8521	8521	2 distribution or transmission grids.
8522	8522	3 (220 ILCS 5/16-102)
8523	8523	4 Sec. 16-102. Definitions. For the purposes of this Article
8524	8524	5 the following terms shall be defined as set forth in this
8525	8525	6 Section.
8526	8526	7 "Alternative retail electric supplier" means every person,
8527	8527	8 cooperative, corporation, municipal corporation, company,
8528	8528	9 association, joint stock company or association, firm,
8529	8529	10 partnership, individual, or other entity, their lessees,
8530	8530	11 trustees, or receivers appointed by any court whatsoever, that
8531	8531	12 offers electric power or energy for sale, lease or in exchange
8532	8532	13 for other value received to one or more retail customers, or
8533	8533	14 that engages in the delivery or furnishing of electric power
8534	8534	15 or energy to such retail customers, and shall include, without
8535	8535	16 limitation, resellers, aggregators and power marketers, but
8536	8536	17 shall not include (i) electric utilities (or any agent of the
8537	8537	18 electric utility to the extent the electric utility provides
8538	8538	19 tariffed services to retail customers through that agent),
8539	8539	20 (ii) any electric cooperative or municipal system as defined
8540	8540	21 in Section 17-100 to the extent that the electric cooperative
8541	8541	22 or municipal system is serving retail customers within any
8542	8542	23 area in which it is or would be entitled to provide service
8543	8543	24 under the law in effect immediately prior to the effective
8544	8544	25 date of this amendatory Act of 1997, (iii) a public utility
8545	8545
8546	8546
8547	8547
8548	8548
8549	8549
8550	8550	SB2497 - 237 - LRB104 12224 JDS 22330 b
8551	8551
8552	8552
8553	8553	SB2497- 238 -LRB104 12224 JDS 22330 b SB2497 - 238 - LRB104 12224 JDS 22330 b
8554	8554	SB2497 - 238 - LRB104 12224 JDS 22330 b
8555	8555	1 that is owned and operated by any public institution of higher
8556	8556	2 education of this State, or a public utility that is owned by
8557	8557	3 such public institution of higher education and operated by
8558	8558	4 any of its lessees or operating agents, within any area in
8559	8559	5 which it is or would be entitled to provide service under the
8560	8560	6 law in effect immediately prior to the effective date of this
8561	8561	7 amendatory Act of 1997, (iv) a retail customer to the extent
8562	8562	8 that customer obtains its electric power and energy from that
8563	8563	9 customer's own cogeneration or self-generation facilities, (v)
8564	8564	10 an entity that owns, operates, sells, or arranges for the
8565	8565	11 installation of a customer's own cogeneration or
8566	8566	12 self-generation facilities, but only to the extent the entity
8567	8567	13 is engaged in owning, selling or arranging for the
8568	8568	14 installation of such facility, or operating the facility on
8569	8569	15 behalf of such customer, provided however that any such third
8570	8570	16 party owner or operator of a facility built after January 1,
8571	8571	17 1999, complies with the labor provisions of Section 16-128(a)
8572	8572	18 as though such third party were an alternative retail electric
8573	8573	19 supplier, or (vi) an industrial or manufacturing customer that
8574	8574	20 owns its own distribution facilities, to the extent that the
8575	8575	21 customer provides service from that distribution system to a
8576	8576	22 third-party contractor located on the customer's premises that
8577	8577	23 is integrally and predominantly engaged in the customer's
8578	8578	24 industrial or manufacturing process; provided, that if the
8579	8579	25 industrial or manufacturing customer has elected delivery
8580	8580	26 services, the customer shall pay transition charges applicable
8581	8581
8582	8582
8583	8583
8584	8584
8585	8585
8586	8586	SB2497 - 238 - LRB104 12224 JDS 22330 b
8587	8587
8588	8588
8589	8589	SB2497- 239 -LRB104 12224 JDS 22330 b SB2497 - 239 - LRB104 12224 JDS 22330 b
8590	8590	SB2497 - 239 - LRB104 12224 JDS 22330 b
8591	8591	1 to the electric power and energy consumed by the third-party
8592	8592	2 contractor unless such charges are otherwise paid by the third
8593	8593	3 party contractor, which shall be calculated based on the usage
8594	8594	4 of, and the base rates or the contract rates applicable to, the
8595	8595	5 third-party contractor in accordance with Section 16-102. A
8596	8596	6 transmission co-location customer or a distribution
8597	8597	7 co-location customer shall be an alternative retail electric
8598	8598	8 supplier.
8599	8599	9 An entity that furnishes the service of charging electric
8600	8600	10 vehicles does not and shall not be deemed to sell electricity
8601	8601	11 and is not and shall not be deemed an alternative retail
8602	8602	12 electric supplier, and is not subject to regulation as such
8603	8603	13 under this Act notwithstanding the basis on which the service
8604	8604	14 is provided or billed. If, however, the entity is otherwise
8605	8605	15 deemed an alternative retail electric supplier under this Act,
8606	8606	16 or is otherwise subject to regulation under this Act, then
8607	8607	17 that entity is not exempt from and remains subject to the
8608	8608	18 otherwise applicable provisions of this Act. The installation,
8609	8609	19 maintenance, and repair of an electric vehicle charging
8610	8610	20 station shall comply with the requirements of subsection (a)
8611	8611	21 of Section 16-128 and Section 16-128A of this Act.
8612	8612	22 For purposes of this Section, the term "electric vehicles"
8613	8613	23 has the meaning ascribed to that term in Section 10 of the
8614	8614	24 Electric Vehicle Act.
8615	8615	25 "Base rates" means the rates for those tariffed services
8616	8616	26 that the electric utility is required to offer pursuant to
8617	8617
8618	8618
8619	8619
8620	8620
8621	8621
8622	8622	SB2497 - 239 - LRB104 12224 JDS 22330 b
8623	8623
8624	8624
8625	8625	SB2497- 240 -LRB104 12224 JDS 22330 b SB2497 - 240 - LRB104 12224 JDS 22330 b
8626	8626	SB2497 - 240 - LRB104 12224 JDS 22330 b
8627	8627	1 subsection (a) of Section 16-103 and that were identified in a
8628	8628	2 rate order for collection of the electric utility's base rate
8629	8629	3 revenue requirement, excluding (i) separate automatic rate
8630	8630	4 adjustment riders then in effect, (ii) special or negotiated
8631	8631	5 contract rates, (iii) delivery services tariffs filed pursuant
8632	8632	6 to Section 16-108, (iv) real-time pricing, or (v) tariffs that
8633	8633	7 were in effect prior to October 1, 1996 and that based charges
8634	8634	8 for services on an index or average of other utilities'
8635	8635	9 charges, but including (vi) any subsequent redesign of such
8636	8636	10 rates for tariffed services that is authorized by the
8637	8637	11 Commission after notice and hearing.
8638	8638	12 "Competitive service" includes (i) any service that has
8639	8639	13 been declared to be competitive pursuant to Section 16-113 of
8640	8640	14 this Act, (ii) contract service, and (iii) services, other
8641	8641	15 than tariffed services, that are related to, but not necessary
8642	8642	16 for, the provision of electric power and energy or delivery
8643	8643	17 services.
8644	8644	18 "Contract service" means (1) services, including the
8645	8645	19 provision of electric power and energy or other services, that
8646	8646	20 are provided by mutual agreement between an electric utility
8647	8647	21 and a retail customer that is located in the electric
8648	8648	22 utility's service area, provided that, delivery services shall
8649	8649	23 not be a contract service until such services are declared
8650	8650	24 competitive pursuant to Section 16-113; and also means (2) the
8651	8651	25 provision of electric power and energy by an electric utility
8652	8652	26 to retail customers outside the electric utility's service
8653	8653
8654	8654
8655	8655
8656	8656
8657	8657
8658	8658	SB2497 - 240 - LRB104 12224 JDS 22330 b
8659	8659
8660	8660
8661	8661	SB2497- 241 -LRB104 12224 JDS 22330 b SB2497 - 241 - LRB104 12224 JDS 22330 b
8662	8662	SB2497 - 241 - LRB104 12224 JDS 22330 b
8663	8663	1 area pursuant to Section 16-116. Provided, however, contract
8664	8664	2 service does not include electric utility services provided
8665	8665	3 pursuant to (i) contracts that retail customers are required
8666	8666	4 to execute as a condition of receiving tariffed services, or
8667	8667	5 (ii) special or negotiated rate contracts for electric utility
8668	8668	6 services that were entered into between an electric utility
8669	8669	7 and a retail customer prior to the effective date of this
8670	8670	8 amendatory Act of 1997 and filed with the Commission.
8671	8671	9 "Delivery services" means those services provided by the
8672	8672	10 electric utility that are necessary in order for the
8673	8673	11 transmission and distribution systems to function so that
8674	8674	12 retail customers located in the electric utility's service
8675	8675	13 area can receive electric power and energy from suppliers
8676	8676	14 other than the electric utility, and shall include, without
8677	8677	15 limitation, standard metering and billing services.
8678	8678	16 "Distribution co-location customer" means an end-user of
8679	8679	17 electric power and energy and associated generation and as
8680	8680	18 applicable energy storage that:
8681	8681	19 (1) can demonstrate projected onsite demand of at
8682	8682	20 least 10 megawatts alternating current;
8683	8683	21 (2) the end user of electric power and energy is
8684	8684	22 electrically connected to (i) one or more generators that
8685	8685	23 are each renewable energy resources, as defined in Section
8686	8686	24 1-10 of the Illinois Power Agency Act, with a cumulative
8687	8687	25 nameplate capacity of at least 5 megawatts alternating
8688	8688	26 current; or (ii) one or more generators that are each
8689	8689
8690	8690
8691	8691
8692	8692
8693	8693
8694	8694	SB2497 - 241 - LRB104 12224 JDS 22330 b
8695	8695
8696	8696
8697	8697	SB2497- 242 -LRB104 12224 JDS 22330 b SB2497 - 242 - LRB104 12224 JDS 22330 b
8698	8698	SB2497 - 242 - LRB104 12224 JDS 22330 b
8699	8699	1 renewable energy resources, as defined in Section 1-10 of
8700	8700	2 the Illinois Power Agency Act, and energy storage devices,
8701	8701	3 with a cumulative total nameplate capacity of at least 5
8702	8702	4 megawatts alternating current; and
8703	8703	5 (3) is interconnected with the distribution system of
8704	8704	6 an electric utility;
8705	8705	7 For the purposes of this definition, the generator(s), the
8706	8706	8 energy storage, and load(s) need not be the same or affiliated
8707	8707	9 entities but must at minimum have a contractual relationship
8708	8708	10 as further defined in Section 16-115 of this Act.
8709	8709	11 "Electric utility" means a public utility, as defined in
8710	8710	12 Section 3-105 of this Act, that has a franchise, license,
8711	8711	13 permit or right to furnish or sell electricity to retail
8712	8712	14 customers within a service area.
8713	8713	15 "Mandatory transition period" means the period from the
8714	8714	16 effective date of this amendatory Act of 1997 through January
8715	8715	17 1, 2007.
8716	8716	18 "Municipal system" shall have the meaning set forth in
8717	8717	19 Section 17-100.
8718	8718	20 "Real-time pricing" means tariffed retail charges for
8719	8719	21 delivered electric power and energy that vary hour-to-hour and
8720	8720	22 are determined from wholesale market prices using a
8721	8721	23 methodology approved by the Illinois Commerce Commission.
8722	8722	24 "Retail customer" means a single entity using electric
8723	8723	25 power or energy at a single premises and that (A) either (i) is
8724	8724	26 receiving or is eligible to receive tariffed services from an
8725	8725
8726	8726
8727	8727
8728	8728
8729	8729
8730	8730	SB2497 - 242 - LRB104 12224 JDS 22330 b
8731	8731
8732	8732
8733	8733	SB2497- 243 -LRB104 12224 JDS 22330 b SB2497 - 243 - LRB104 12224 JDS 22330 b
8734	8734	SB2497 - 243 - LRB104 12224 JDS 22330 b
8735	8735	1 electric utility, or (ii) that is served by a municipal system
8736	8736	2 or electric cooperative within any area in which the municipal
8737	8737	3 system or electric cooperative is or would be entitled to
8738	8738	4 provide service under the law in effect immediately prior to
8739	8739	5 the effective date of this amendatory Act of 1997, or (B) an
8740	8740	6 entity which on the effective date of this Act was receiving
8741	8741	7 electric service from a public utility and (i) was engaged in
8742	8742	8 the practice of resale and redistribution of such electricity
8743	8743	9 within a building prior to January 2, 1957, or (ii) was
8744	8744	10 providing lighting services to tenants in a multi-occupancy
8745	8745	11 building, but only to the extent such resale, redistribution
8746	8746	12 or lighting service is authorized by the electric utility's
8747	8747	13 tariffs that were on file with the Commission on the effective
8748	8748	14 date of this Act. "Retail Customer" shall not include any
8749	8749	15 co-location customer.
8750	8750	16 "Service area" means (i) the geographic area within which
8751	8751	17 an electric utility was lawfully entitled to provide electric
8752	8752	18 power and energy to retail customers as of the effective date
8753	8753	19 of this amendatory Act of 1997, and includes (ii) the location
8754	8754	20 of any retail customer to which the electric utility was
8755	8755	21 lawfully providing electric utility services on such effective
8756	8756	22 date.
8757	8757	23 "Small commercial retail customer" means those
8758	8758	24 nonresidential retail customers of an electric utility
8759	8759	25 consuming 15,000 kilowatt-hours or less of electricity
8760	8760	26 annually in its service area.
8761	8761
8762	8762
8763	8763
8764	8764
8765	8765
8766	8766	SB2497 - 243 - LRB104 12224 JDS 22330 b
8767	8767
8768	8768
8769	8769	SB2497- 244 -LRB104 12224 JDS 22330 b SB2497 - 244 - LRB104 12224 JDS 22330 b
8770	8770	SB2497 - 244 - LRB104 12224 JDS 22330 b
8771	8771	1 "Tariffed service" means services provided to retail
8772	8772	2 customers by an electric utility as defined by its rates on
8773	8773	3 file with the Commission pursuant to the provisions of Article
8774	8774	4 IX of this Act, but shall not include competitive services.
8775	8775	5 "Transition charge" means a charge expressed in cents per
8776	8776	6 kilowatt-hour that is calculated for a customer or class of
8777	8777	7 customers as follows for each year in which an electric
8778	8778	8 utility is entitled to recover transition charges as provided
8779	8779	9 in Section 16-108:
8780	8780	10 (1) the amount of revenue that an electric utility
8781	8781	11 would receive from the retail customer or customers if it
8782	8782	12 were serving such customers' electric power and energy
8783	8783	13 requirements as a tariffed service based on (A) all of the
8784	8784	14 customers' actual usage during the 3 years ending 90 days
8785	8785	15 prior to the date on which such customers were first
8786	8786	16 eligible for delivery services pursuant to Section 16-104,
8787	8787	17 and (B) on (i) the base rates in effect on October 1, 1996
8788	8788	18 (adjusted for the reductions required by subsection (b) of
8789	8789	19 Section 16-111, for any reduction resulting from a rate
8790	8790	20 decrease under Section 16-101(b), for any restatement of
8791	8791	21 base rates made in conjunction with an elimination of the
8792	8792	22 fuel adjustment clause pursuant to subsection (b), (d), or
8793	8793	23 (f) of Section 9-220 and for any removal of
8794	8794	24 decommissioning costs from base rates pursuant to Section
8795	8795	25 16-114) and any separate automatic rate adjustment riders
8796	8796	26 (other than a decommissioning rate as defined in Section
8797	8797
8798	8798
8799	8799
8800	8800
8801	8801
8802	8802	SB2497 - 244 - LRB104 12224 JDS 22330 b
8803	8803
8804	8804
8805	8805	SB2497- 245 -LRB104 12224 JDS 22330 b SB2497 - 245 - LRB104 12224 JDS 22330 b
8806	8806	SB2497 - 245 - LRB104 12224 JDS 22330 b
8807	8807	1 16-114) under which the customers were receiving or, had
8808	8808	2 they been customers, would have received electric power
8809	8809	3 and energy from the electric utility during the year
8810	8810	4 immediately preceding the date on which such customers
8811	8811	5 were first eligible for delivery service pursuant to
8812	8812	6 Section 16-104, or (ii) to the extent applicable, any
8813	8813	7 contract rates, including contracts or rates for
8814	8814	8 consolidated or aggregated billing, under which such
8815	8815	9 customers were receiving electric power and energy from
8816	8816	10 the electric utility during such year;
8817	8817	11 (2) less the amount of revenue, other than revenue
8818	8818	12 from transition charges and decommissioning rates, that
8819	8819	13 the electric utility would receive from such retail
8820	8820	14 customers for delivery services provided by the electric
8821	8821	15 utility, assuming such customers were taking delivery
8822	8822	16 services for all of their usage, based on the delivery
8823	8823	17 services tariffs in effect during the year for which the
8824	8824	18 transition charge is being calculated and on the usage
8825	8825	19 identified in paragraph (1);
8826	8826	20 (3) less the market value for the electric power and
8827	8827	21 energy that the electric utility would have used to supply
8828	8828	22 all of such customers' electric power and energy
8829	8829	23 requirements, as a tariffed service, based on the usage
8830	8830	24 identified in paragraph (1), with such market value
8831	8831	25 determined in accordance with Section 16-112 of this Act;
8832	8832	26 (4) less the following amount which represents the
8833	8833
8834	8834
8835	8835
8836	8836
8837	8837
8838	8838	SB2497 - 245 - LRB104 12224 JDS 22330 b
8839	8839
8840	8840
8841	8841	SB2497- 246 -LRB104 12224 JDS 22330 b SB2497 - 246 - LRB104 12224 JDS 22330 b
8842	8842	SB2497 - 246 - LRB104 12224 JDS 22330 b
8843	8843	1 amount to be attributed to new revenue sources and cost
8844	8844	2 reductions by the electric utility through the end of the
8845	8845	3 period for which transition costs are recovered pursuant
8846	8846	4 to Section 16-108, referred to in this Article XVI as a
8847	8847	5 "mitigation factor":
8848	8848	6 (A) for nonresidential retail customers, an amount
8849	8849	7 equal to the greater of (i) 0.5 cents per
8850	8850	8 kilowatt-hour during the period October 1, 1999
8851	8851	9 through December 31, 2004, 0.6 cents per kilowatt-hour
8852	8852	10 in calendar year 2005, and 0.9 cents per kilowatt-hour
8853	8853	11 in calendar year 2006, multiplied in each year by the
8854	8854	12 usage identified in paragraph (1), or (ii) an amount
8855	8855	13 equal to the following percentages of the amount
8856	8856	14 produced by applying the applicable base rates
8857	8857	15 (adjusted as described in subparagraph (1)(B)) or
8858	8858	16 contract rate to the usage identified in paragraph
8859	8859	17 (1): 8% for the period October 1, 1999 through
8860	8860	18 December 31, 2002, 10% in calendar years 2003 and
8861	8861	19 2004, 11% in calendar year 2005 and 12% in calendar
8862	8862	20 year 2006; and
8863	8863	21 (B) for residential retail customers, an amount
8864	8864	22 equal to the following percentages of the amount
8865	8865	23 produced by applying the base rates in effect on
8866	8866	24 October 1, 1996 (adjusted as described in subparagraph
8867	8867	25 (1)(B)) to the usage identified in paragraph (1): (i)
8868	8868	26 6% from May 1, 2002 through December 31, 2002, (ii) 7%
8869	8869
8870	8870
8871	8871
8872	8872
8873	8873
8874	8874	SB2497 - 246 - LRB104 12224 JDS 22330 b
8875	8875
8876	8876
8877	8877	SB2497- 247 -LRB104 12224 JDS 22330 b SB2497 - 247 - LRB104 12224 JDS 22330 b
8878	8878	SB2497 - 247 - LRB104 12224 JDS 22330 b
8879	8879	1 in calendar years 2003 and 2004, (iii) 8% in calendar
8880	8880	2 year 2005, and (iv) 10% in calendar year 2006;
8881	8881	3 (5) divided by the usage of such customers identified
8882	8882	4 in paragraph (1),
8883	8883	5 provided that the transition charge shall never be less than
8884	8884	6 zero.
8885	8885	7 "Transmission co-location customer" means an end-user of
8886	8886	8 electric power and energy and associated generation and as
8887	8887	9 applicable energy storage that:
8888	8888	10 (1) can demonstrate projected onsite demand of at
8889	8889	11 least 50 megawatts alternating current;
8890	8890	12 (2) the end-user of electric power and energy is
8891	8891	13 electrically connected to (i) one or more generators that
8892	8892	14 are each renewable energy resources, as defined in Section
8893	8893	15 1-10 of the Illinois Power Agency Act, with a cumulative
8894	8894	16 nameplate capacity of at least 50 megawatts alternating
8895	8895	17 current; or (ii) one or more generators that are each
8896	8896	18 renewable energy resources, as defined in Section 1-10 of
8897	8897	19 the Illinois Power Agency Act, and energy storage devices,
8898	8898	20 with a cumulative total nameplate capacity of at least 50
8899	8899	21 megawatts alternating current;
8900	8900	22 (3) is interconnected to PJM Interconnection, LLC or
8901	8901	23 Midcontinent Independent System Operator, Inc.;
8902	8902	24 (4) is not interconnected to the distribution system
8903	8903	25 of an electric utility, a municipal system, or an electric
8904	8904	26 cooperative; and
8905	8905
8906	8906
8907	8907
8908	8908
8909	8909
8910	8910	SB2497 - 247 - LRB104 12224 JDS 22330 b
8911	8911
8912	8912
8913	8913	SB2497- 248 -LRB104 12224 JDS 22330 b SB2497 - 248 - LRB104 12224 JDS 22330 b
8914	8914	SB2497 - 248 - LRB104 12224 JDS 22330 b
8915	8915	1 (5) has received requisite authority from the Federal
8916	8916	2 Energy Regulatory Commission, PJM Interconnection, LLC or
8917	8917	3 Midcontinent Independent System Operator, Inc. as a
8918	8918	4 load-serving entity.
8919	8919	5 For the purposes of this definition, the generator(s), the
8920	8920	6 energy storage, and load(s) need not be the same or affiliated
8921	8921	7 entities but must at minimum have a contractual relationship
8922	8922	8 as further defined in Section 16-115 of this Act.
8923	8923	9 "Unbundled service" means a component or constituent part
8924	8924	10 of a tariffed service which the electric utility subsequently
8925	8925	11 offers separately to its customers.
8926	8926	12 (Source: P.A. 97-1128, eff. 8-28-12.)
8927	8927	13 (220 ILCS 5/16-107.5)
8928	8928	14 Sec. 16-107.5. Net electricity metering.
8929	8929	15 (a) The General Assembly finds and declares that a program
8930	8930	16 to provide net electricity metering, as defined in this
8931	8931	17 Section, for eligible customers can encourage private
8932	8932	18 investment in renewable energy resources, stimulate economic
8933	8933	19 growth, enhance the continued diversification of Illinois'
8934	8934	20 energy resource mix, and protect the Illinois environment.
8935	8935	21 Further, to achieve the goals of this Act that robust options
8936	8936	22 for customer-site distributed generation continue to thrive in
8937	8937	23 Illinois, the General Assembly finds that a predictable
8938	8938	24 transition must be ensured for customers between full net
8939	8939	25 metering at the retail electricity rate to the distribution
8940	8940
8941	8941
8942	8942
8943	8943
8944	8944
8945	8945	SB2497 - 248 - LRB104 12224 JDS 22330 b
8946	8946
8947	8947
8948	8948	SB2497- 249 -LRB104 12224 JDS 22330 b SB2497 - 249 - LRB104 12224 JDS 22330 b
8949	8949	SB2497 - 249 - LRB104 12224 JDS 22330 b
8950	8950	1 generation rebate described in Section 16-107.6.
8951	8951	2 (b) As used in this Section, (i) "community renewable
8952	8952	3 generation project" shall have the meaning set forth in
8953	8953	4 Section 1-10 of the Illinois Power Agency Act; (ii) "eligible
8954	8954	5 customer" means a retail customer that owns, hosts, or
8955	8955	6 operates, including any third-party owned systems, a solar,
8956	8956	7 wind, or other eligible renewable electrical generating
8957	8957	8 facility that is located on the customer's premises or
8958	8958	9 customer's side of the billing meter and is intended primarily
8959	8959	10 to offset the customer's own current or future electrical
8960	8960	11 requirements; (iii) "electricity provider" means an electric
8961	8961	12 utility or alternative retail electric supplier; (iv)
8962	8962	13 "eligible renewable electrical generating facility" means a
8963	8963	14 generator, which may include the co-location of an energy
8964	8964	15 storage system, that is interconnected under rules adopted by
8965	8965	16 the Commission and is powered by solar electric energy, wind,
8966	8966	17 dedicated crops grown for electricity generation, agricultural
8967	8967	18 residues, untreated and unadulterated wood waste, livestock
8968	8968	19 manure, anaerobic digestion of livestock or food processing
8969	8969	20 waste, fuel cells or microturbines powered by renewable fuels,
8970	8970	21 or hydroelectric energy; (v) "net electricity metering" (or
8971	8971	22 "net metering") means the measurement, during the billing
8972	8972	23 period applicable to an eligible customer, of the net amount
8973	8973	24 of electricity supplied by an electricity provider to the
8974	8974	25 customer or provided to the electricity provider by the
8975	8975	26 customer or subscriber; (vi) "subscriber" shall have the
8976	8976
8977	8977
8978	8978
8979	8979
8980	8980
8981	8981	SB2497 - 249 - LRB104 12224 JDS 22330 b
8982	8982
8983	8983
8984	8984	SB2497- 250 -LRB104 12224 JDS 22330 b SB2497 - 250 - LRB104 12224 JDS 22330 b
8985	8985	SB2497 - 250 - LRB104 12224 JDS 22330 b
8986	8986	1 meaning as set forth in Section 1-10 of the Illinois Power
8987	8987	2 Agency Act; (vii) "subscription" shall have the meaning set
8988	8988	3 forth in Section 1-10 of the Illinois Power Agency Act; (viii)
8989	8989	4 "energy storage system" means commercially available
8990	8990	5 technology that is capable of absorbing energy and storing it
8991	8991	6 for a period of time for use at a later time, including, but
8992	8992	7 not limited to, electrochemical, thermal, and
8993	8993	8 electromechanical technologies, and may be interconnected
8994	8994	9 behind the customer's meter or interconnected behind its own
8995	8995	10 meter; and (ix) "future electrical requirements" means modeled
8996	8996	11 electrical requirements upon occupation of a new or vacant
8997	8997	12 property, and other reasonable expectations of future
8998	8998	13 electrical use, as well as, for occupied properties, a
8999	8999	14 reasonable approximation of the annual load of 2 electric
9000	9000	15 vehicles and, for non-electric heating customers, a reasonable
9001	9001	16 approximation of the incremental electric load associated with
9002	9002	17 fuel switching. The approximations shall be applied to the
9003	9003	18 appropriate net metering tariff and do not need to be unique to
9004	9004	19 each individual eligible customer. The utility shall submit
9005	9005	20 these approximations to the Commission for review,
9006	9006	21 modification, and approval.
9007	9007	22 (c) A net metering facility shall be equipped with
9008	9008	23 metering equipment that can measure the flow of electricity in
9009	9009	24 both directions at the same rate.
9010	9010	25 (1) For eligible customers whose electric service has
9011	9011	26 not been declared competitive pursuant to Section 16-113
9012	9012
9013	9013
9014	9014
9015	9015
9016	9016
9017	9017	SB2497 - 250 - LRB104 12224 JDS 22330 b
9018	9018
9019	9019
9020	9020	SB2497- 251 -LRB104 12224 JDS 22330 b SB2497 - 251 - LRB104 12224 JDS 22330 b
9021	9021	SB2497 - 251 - LRB104 12224 JDS 22330 b
9022	9022	1 of this Act as of July 1, 2011 and whose electric delivery
9023	9023	2 service is provided and measured on a kilowatt-hour basis
9024	9024	3 and electric supply service is not provided based on
9025	9025	4 hourly pricing, this shall typically be accomplished
9026	9026	5 through use of a single, bi-directional meter. If the
9027	9027	6 eligible customer's existing electric revenue meter does
9028	9028	7 not meet this requirement, the electricity provider shall
9029	9029	8 arrange for the local electric utility or a meter service
9030	9030	9 provider to install and maintain a new revenue meter at
9031	9031	10 the electricity provider's expense, which may be the smart
9032	9032	11 meter described by subsection (b) of Section 16-108.5 of
9033	9033	12 this Act.
9034	9034	13 (2) For eligible customers whose electric service has
9035	9035	14 not been declared competitive pursuant to Section 16-113
9036	9036	15 of this Act as of July 1, 2011 and whose electric delivery
9037	9037	16 service is provided and measured on a kilowatt demand
9038	9038	17 basis and electric supply service is not provided based on
9039	9039	18 hourly pricing, this shall typically be accomplished
9040	9040	19 through use of a dual channel meter capable of measuring
9041	9041	20 the flow of electricity both into and out of the
9042	9042	21 customer's facility at the same rate and ratio. If such
9043	9043	22 customer's existing electric revenue meter does not meet
9044	9044	23 this requirement, then the electricity provider shall
9045	9045	24 arrange for the local electric utility or a meter service
9046	9046	25 provider to install and maintain a new revenue meter at
9047	9047	26 the electricity provider's expense, which may be the smart
9048	9048
9049	9049
9050	9050
9051	9051
9052	9052
9053	9053	SB2497 - 251 - LRB104 12224 JDS 22330 b
9054	9054
9055	9055
9056	9056	SB2497- 252 -LRB104 12224 JDS 22330 b SB2497 - 252 - LRB104 12224 JDS 22330 b
9057	9057	SB2497 - 252 - LRB104 12224 JDS 22330 b
9058	9058	1 meter described by subsection (b) of Section 16-108.5 of
9059	9059	2 this Act.
9060	9060	3 (3) For all other eligible customers, until such time
9061	9061	4 as the local electric utility installs a smart meter, as
9062	9062	5 described by subsection (b) of Section 16-108.5 of this
9063	9063	6 Act, the electricity provider may arrange for the local
9064	9064	7 electric utility or a meter service provider to install
9065	9065	8 and maintain metering equipment capable of measuring the
9066	9066	9 flow of electricity both into and out of the customer's
9067	9067	10 facility at the same rate and ratio, typically through the
9068	9068	11 use of a dual channel meter. If the eligible customer's
9069	9069	12 existing electric revenue meter does not meet this
9070	9070	13 requirement, then the costs of installing such equipment
9071	9071	14 shall be paid for by the customer.
9072	9072	15 (d) An electricity provider shall measure and charge or
9073	9073	16 credit for the net electricity supplied to eligible customers
9074	9074	17 or provided by eligible customers whose electric service has
9075	9075	18 not been declared competitive pursuant to Section 16-113 of
9076	9076	19 this Act as of July 1, 2011 and whose electric delivery service
9077	9077	20 is provided and measured on a kilowatt-hour basis and electric
9078	9078	21 supply service is not provided based on hourly pricing in the
9079	9079	22 following manner:
9080	9080	23 (1) If the amount of electricity used by the customer
9081	9081	24 during the billing period exceeds the amount of
9082	9082	25 electricity produced by the customer, the electricity
9083	9083	26 provider shall charge the customer for the net electricity
9084	9084
9085	9085
9086	9086
9087	9087
9088	9088
9089	9089	SB2497 - 252 - LRB104 12224 JDS 22330 b
9090	9090
9091	9091
9092	9092	SB2497- 253 -LRB104 12224 JDS 22330 b SB2497 - 253 - LRB104 12224 JDS 22330 b
9093	9093	SB2497 - 253 - LRB104 12224 JDS 22330 b
9094	9094	1 supplied to and used by the customer as provided in
9095	9095	2 subsection (e-5) of this Section.
9096	9096	3 (2) If the amount of electricity produced by a
9097	9097	4 customer during the billing period exceeds the amount of
9098	9098	5 electricity used by the customer during that billing
9099	9099	6 period, the electricity provider supplying that customer
9100	9100	7 shall apply a 1:1 kilowatt-hour credit to a subsequent
9101	9101	8 bill for service to the customer for the net electricity
9102	9102	9 supplied to the electricity provider. The electricity
9103	9103	10 provider shall continue to carry over any excess
9104	9104	11 kilowatt-hour credits earned and apply those credits to
9105	9105	12 subsequent billing periods to offset any
9106	9106	13 customer-generator consumption in those billing periods
9107	9107	14 until all credits are used or until the end of the
9108	9108	15 annualized period.
9109	9109	16 (3) At the end of the year or annualized over the
9110	9110	17 period that service is supplied by means of net metering,
9111	9111	18 or in the event that the retail customer terminates
9112	9112	19 service with the electricity provider prior to the end of
9113	9113	20 the year or the annualized period, any remaining credits
9114	9114	21 in the customer's account shall expire.
9115	9115	22 (d-5) An electricity provider shall measure and charge or
9116	9116	23 credit for the net electricity supplied to eligible customers
9117	9117	24 or provided by eligible customers whose electric service has
9118	9118	25 not been declared competitive pursuant to Section 16-113 of
9119	9119	26 this Act as of July 1, 2011 and whose electric delivery service
9120	9120
9121	9121
9122	9122
9123	9123
9124	9124
9125	9125	SB2497 - 253 - LRB104 12224 JDS 22330 b
9126	9126
9127	9127
9128	9128	SB2497- 254 -LRB104 12224 JDS 22330 b SB2497 - 254 - LRB104 12224 JDS 22330 b
9129	9129	SB2497 - 254 - LRB104 12224 JDS 22330 b
9130	9130	1 is provided and measured on a kilowatt-hour basis and electric
9131	9131	2 supply service is provided based on hourly pricing or
9132	9132	3 time-of-use rates in the following manner:
9133	9133	4 (1) If the amount of electricity used by the customer
9134	9134	5 during any hourly period or time-of-use period exceeds the
9135	9135	6 amount of electricity produced by the customer, the
9136	9136	7 electricity provider shall charge the customer for the net
9137	9137	8 electricity supplied to and used by the customer according
9138	9138	9 to the terms of the contract or tariff to which the same
9139	9139	10 customer would be assigned to or be eligible for if the
9140	9140	11 customer was not a net metering customer.
9141	9141	12 (2) If the amount of electricity produced by a
9142	9142	13 customer during any hourly period or time-of-use period
9143	9143	14 exceeds the amount of electricity used by the customer
9144	9144	15 during that hourly period or time-of-use period, the
9145	9145	16 energy provider shall apply a credit for the net
9146	9146	17 kilowatt-hours produced in such period. The credit shall
9147	9147	18 consist of an energy credit and a delivery service credit.
9148	9148	19 The energy credit shall be valued at the same price per
9149	9149	20 kilowatt-hour as the electric service provider would
9150	9150	21 charge for kilowatt-hour energy sales during that same
9151	9151	22 hourly period or time-of-use period. The delivery credit
9152	9152	23 shall be equal to the net kilowatt-hours produced in such
9153	9153	24 hourly period or time-of-use period times a credit that
9154	9154	25 reflects all kilowatt-hour based charges in the customer's
9155	9155	26 electric service rate, excluding energy charges.
9156	9156
9157	9157
9158	9158
9159	9159
9160	9160
9161	9161	SB2497 - 254 - LRB104 12224 JDS 22330 b
9162	9162
9163	9163
9164	9164	SB2497- 255 -LRB104 12224 JDS 22330 b SB2497 - 255 - LRB104 12224 JDS 22330 b
9165	9165	SB2497 - 255 - LRB104 12224 JDS 22330 b
9166	9166	1 (e) An electricity provider shall measure and charge or
9167	9167	2 credit for the net electricity supplied to eligible customers
9168	9168	3 whose electric service has not been declared competitive
9169	9169	4 pursuant to Section 16-113 of this Act as of July 1, 2011 and
9170	9170	5 whose electric delivery service is provided and measured on a
9171	9171	6 kilowatt demand basis and electric supply service is not
9172	9172	7 provided based on hourly pricing in the following manner:
9173	9173	8 (1) If the amount of electricity used by the customer
9174	9174	9 during the billing period exceeds the amount of
9175	9175	10 electricity produced by the customer, then the electricity
9176	9176	11 provider shall charge the customer for the net electricity
9177	9177	12 supplied to and used by the customer as provided in
9178	9178	13 subsection (e-5) of this Section. The customer shall
9179	9179	14 remain responsible for all taxes, fees, and utility
9180	9180	15 delivery charges that would otherwise be applicable to the
9181	9181	16 net amount of electricity used by the customer.
9182	9182	17 (2) If the amount of electricity produced by a
9183	9183	18 customer during the billing period exceeds the amount of
9184	9184	19 electricity used by the customer during that billing
9185	9185	20 period, then the electricity provider supplying that
9186	9186	21 customer shall apply a 1:1 kilowatt-hour credit that
9187	9187	22 reflects the kilowatt-hour based charges in the customer's
9188	9188	23 electric service rate to a subsequent bill for service to
9189	9189	24 the customer for the net electricity supplied to the
9190	9190	25 electricity provider. The electricity provider shall
9191	9191	26 continue to carry over any excess kilowatt-hour credits
9192	9192
9193	9193
9194	9194
9195	9195
9196	9196
9197	9197	SB2497 - 255 - LRB104 12224 JDS 22330 b
9198	9198
9199	9199
9200	9200	SB2497- 256 -LRB104 12224 JDS 22330 b SB2497 - 256 - LRB104 12224 JDS 22330 b
9201	9201	SB2497 - 256 - LRB104 12224 JDS 22330 b
9202	9202	1 earned and apply those credits to subsequent billing
9203	9203	2 periods to offset any customer-generator consumption in
9204	9204	3 those billing periods until all credits are used or until
9205	9205	4 the end of the annualized period.
9206	9206	5 (3) At the end of the year or annualized over the
9207	9207	6 period that service is supplied by means of net metering,
9208	9208	7 or in the event that the retail customer terminates
9209	9209	8 service with the electricity provider prior to the end of
9210	9210	9 the year or the annualized period, any remaining credits
9211	9211	10 in the customer's account shall expire.
9212	9212	11 (e-5) An electricity provider shall provide electric
9213	9213	12 service to eligible customers who utilize net metering at
9214	9214	13 non-discriminatory rates that are identical, with respect to
9215	9215	14 rate structure, retail rate components, and any monthly
9216	9216	15 charges, to the rates that the customer would be charged if not
9217	9217	16 a net metering customer. An electricity provider shall not
9218	9218	17 charge net metering customers any fee or charge or require
9219	9219	18 additional equipment, insurance, or any other requirements not
9220	9220	19 specifically authorized by interconnection standards
9221	9221	20 authorized by the Commission, unless the fee, charge, or other
9222	9222	21 requirement would apply to other similarly situated customers
9223	9223	22 who are not net metering customers. The customer will remain
9224	9224	23 responsible for all taxes, fees, and utility delivery charges
9225	9225	24 that would otherwise be applicable to the net amount of
9226	9226	25 electricity used by the customer. Subsections (c) through (e)
9227	9227	26 of this Section shall not be construed to prevent an
9228	9228
9229	9229
9230	9230
9231	9231
9232	9232
9233	9233	SB2497 - 256 - LRB104 12224 JDS 22330 b
9234	9234
9235	9235
9236	9236	SB2497- 257 -LRB104 12224 JDS 22330 b SB2497 - 257 - LRB104 12224 JDS 22330 b
9237	9237	SB2497 - 257 - LRB104 12224 JDS 22330 b
9238	9238	1 arms-length agreement between an electricity provider and an
9239	9239	2 eligible customer that sets forth different prices, terms, and
9240	9240	3 conditions for the provision of net metering service,
9241	9241	4 including, but not limited to, the provision of the
9242	9242	5 appropriate metering equipment for non-residential customers.
9243	9243	6 (f) Notwithstanding the requirements of subsections (c)
9244	9244	7 through (e-5) of this Section, an electricity provider must
9245	9245	8 require dual-channel metering for customers operating eligible
9246	9246	9 renewable electrical generating facilities to whom the
9247	9247	10 provisions of neither subsection (d), (d-5), nor (e) of this
9248	9248	11 Section apply. In such cases, electricity charges and credits
9249	9249	12 shall be determined as follows:
9250	9250	13 (1) The electricity provider shall assess and the
9251	9251	14 customer remains responsible for all taxes, fees, and
9252	9252	15 utility delivery charges that would otherwise be
9253	9253	16 applicable to the gross amount of kilowatt-hours supplied
9254	9254	17 to the eligible customer by the electricity provider.
9255	9255	18 (2) Each month that service is supplied by means of
9256	9256	19 dual-channel metering, the electricity provider shall
9257	9257	20 compensate the eligible customer for any excess
9258	9258	21 kilowatt-hour credits at the electricity provider's
9259	9259	22 avoided cost of electricity supply over the monthly period
9260	9260	23 or as otherwise specified by the terms of a power-purchase
9261	9261	24 agreement negotiated between the customer and electricity
9262	9262	25 provider.
9263	9263	26 (3) For all eligible net metering customers taking
9264	9264
9265	9265
9266	9266
9267	9267
9268	9268
9269	9269	SB2497 - 257 - LRB104 12224 JDS 22330 b
9270	9270
9271	9271
9272	9272	SB2497- 258 -LRB104 12224 JDS 22330 b SB2497 - 258 - LRB104 12224 JDS 22330 b
9273	9273	SB2497 - 258 - LRB104 12224 JDS 22330 b
9274	9274	1 service from an electricity provider under contracts or
9275	9275	2 tariffs employing hourly or time-of-use rates, any monthly
9276	9276	3 consumption of electricity shall be calculated according
9277	9277	4 to the terms of the contract or tariff to which the same
9278	9278	5 customer would be assigned to or be eligible for if the
9279	9279	6 customer was not a net metering customer. When those same
9280	9280	7 customer-generators are net generators during any discrete
9281	9281	8 hourly or time-of-use period, the net kilowatt-hours
9282	9282	9 produced shall be valued at the same price per
9283	9283	10 kilowatt-hour as the electric service provider would
9284	9284	11 charge for retail kilowatt-hour sales during that same
9285	9285	12 time-of-use period.
9286	9286	13 (g) For purposes of federal and State laws providing
9287	9287	14 renewable energy credits or greenhouse gas credits, the
9288	9288	15 eligible customer shall be treated as owning and having title
9289	9289	16 to the renewable energy attributes, renewable energy credits,
9290	9290	17 and greenhouse gas emission credits related to any electricity
9291	9291	18 produced by the qualified generating unit. The electricity
9292	9292	19 provider may not condition participation in a net metering
9293	9293	20 program on the signing over of a customer's renewable energy
9294	9294	21 credits; provided, however, this subsection (g) shall not be
9295	9295	22 construed to prevent an arms-length agreement between an
9296	9296	23 electricity provider and an eligible customer that sets forth
9297	9297	24 the ownership or title of the credits.
9298	9298	25 (h) Within 120 days after the effective date of this
9299	9299	26 amendatory Act of the 95th General Assembly, the Commission
9300	9300
9301	9301
9302	9302
9303	9303
9304	9304
9305	9305	SB2497 - 258 - LRB104 12224 JDS 22330 b
9306	9306
9307	9307
9308	9308	SB2497- 259 -LRB104 12224 JDS 22330 b SB2497 - 259 - LRB104 12224 JDS 22330 b
9309	9309	SB2497 - 259 - LRB104 12224 JDS 22330 b
9310	9310	1 shall establish standards for net metering and, if the
9311	9311	2 Commission has not already acted on its own initiative,
9312	9312	3 standards for the interconnection of eligible renewable
9313	9313	4 generating equipment to the utility system. The
9314	9314	5 interconnection standards shall address any procedural
9315	9315	6 barriers, delays, and administrative costs associated with the
9316	9316	7 interconnection of customer-generation while ensuring the
9317	9317	8 safety and reliability of the units and the electric utility
9318	9318	9 system. The Commission shall consider the Institute of
9319	9319	10 Electrical and Electronics Engineers (IEEE) Standard 1547 and
9320	9320	11 the issues of (i) reasonable and fair fees and costs, (ii)
9321	9321	12 clear timelines for major milestones in the interconnection
9322	9322	13 process, (iii) nondiscriminatory terms of agreement, and (iv)
9323	9323	14 any best practices for interconnection of distributed
9324	9324	15 generation.
9325	9325	16 (h-5) Within 90 days after the effective date of this
9326	9326	17 amendatory Act of the 104th General Assembly amendatory Act of
9327	9327	18 the 102nd General Assembly, the Commission shall:
9328	9328	19 (1) establish an Interconnection Working Group. The
9329	9329	20 working group shall include representatives from electric
9330	9330	21 utilities, developers of renewable electric generating
9331	9331	22 facilities, other industries that regularly apply for
9332	9332	23 interconnection with the electric utilities,
9333	9333	24 representatives of distributed generation customers, the
9334	9334	25 Commission Staff, and such other stakeholders with a
9335	9335	26 substantial interest in the topics addressed by the
9336	9336
9337	9337
9338	9338
9339	9339
9340	9340
9341	9341	SB2497 - 259 - LRB104 12224 JDS 22330 b
9342	9342
9343	9343
9344	9344	SB2497- 260 -LRB104 12224 JDS 22330 b SB2497 - 260 - LRB104 12224 JDS 22330 b
9345	9345	SB2497 - 260 - LRB104 12224 JDS 22330 b
9346	9346	1 Interconnection Working Group. The Interconnection Working
9347	9347	2 Group shall address at least the following issues:
9348	9348	3 (A) cost and best available technology for
9349	9349	4 interconnection and metering, including the
9350	9350	5 standardization and publication of standard costs;
9351	9351	6 (B) transparency, accuracy and use of the
9352	9352	7 distribution interconnection queue and hosting
9353	9353	8 capacity maps;
9354	9354	9 (C) distribution system upgrade cost avoidance
9355	9355	10 through use of advanced inverter functions;
9356	9356	11 (D) predictability of the queue management process
9357	9357	12 and enforcement of timelines;
9358	9358	13 (E) benefits and challenges associated with group
9359	9359	14 studies and cost sharing;
9360	9360	15 (F) minimum requirements for application to the
9361	9361	16 interconnection process and throughout the
9362	9362	17 interconnection process to avoid queue clogging
9363	9363	18 behavior;
9364	9364	19 (G) process and customer service for
9365	9365	20 interconnecting customers adopting distributed energy
9366	9366	21 resources, including energy storage;
9367	9367	22 (H) options for metering distributed energy
9368	9368	23 resources, including energy storage;
9369	9369	24 (I) interconnection of new technologies, including
9370	9370	25 smart inverters and energy storage;
9371	9371	26 (J) collect, share, and examine data on Level 1
9372	9372
9373	9373
9374	9374
9375	9375
9376	9376
9377	9377	SB2497 - 260 - LRB104 12224 JDS 22330 b
9378	9378
9379	9379
9380	9380	SB2497- 261 -LRB104 12224 JDS 22330 b SB2497 - 261 - LRB104 12224 JDS 22330 b
9381	9381	SB2497 - 261 - LRB104 12224 JDS 22330 b
9382	9382	1 interconnection costs, including cost and type of
9383	9383	2 upgrades required for interconnection, and use this
9384	9384	3 data to inform the final standardized cost of Level 1
9385	9385	4 interconnection; and
9386	9386	5 (K) such other technical, policy, and tariff
9387	9387	6 issues related to and affecting interconnection
9388	9388	7 performance and customer service as determined by the
9389	9389	8 Interconnection Working Group.
9390	9390	9 The Commission may create subcommittees of the
9391	9391	10 Interconnection Working Group to focus on specific issues
9392	9392	11 of importance, as appropriate. The Ombudsman, on behalf of
9393	9393	12 the Interconnection Working Group, shall report to the
9394	9394	13 Commission on recommended improvements to interconnection
9395	9395	14 rules and tariffs and policies as determined by the
9396	9396	15 Interconnection Working Group at least every 6 months.
9397	9397	16 Such reports shall include consensus recommendations of
9398	9398	17 the Interconnection Working Group and, if applicable,
9399	9399	18 additional recommendations for which consensus was not
9400	9400	19 reached. The Commission shall use the report from the
9401	9401	20 Interconnection Working Group to determine whether
9402	9402	21 processes should be commenced to formally codify or
9403	9403	22 implement the recommendations;
9404	9404	23 (2) designate the Ombudsperson described in Section
9405	9405	24 23-110, or his or her designee within the Office of
9406	9406	25 Interconnection and Renewable Development, to act as the
9407	9407	26 facilitator for the Interconnection Working Group for the
9408	9408
9409	9409
9410	9410
9411	9411
9412	9412
9413	9413	SB2497 - 261 - LRB104 12224 JDS 22330 b
9414	9414
9415	9415
9416	9416	SB2497- 262 -LRB104 12224 JDS 22330 b SB2497 - 262 - LRB104 12224 JDS 22330 b
9417	9417	SB2497 - 262 - LRB104 12224 JDS 22330 b
9418	9418	1 purpose of resolving create or contract for an Ombudsman
9419	9419	2 to resolve interconnection disputes through mediation or
9420	9420	3 non-binding arbitration, to the extent mediation or
9421	9421	4 non-binding arbitration is available under rules adopted
9422	9422	5 by the Commission. As the facilitator for the
9423	9423	6 Interconnection Working Group, the Ombudsperson shall
9424	9424	7 convene stakeholders to set agendas for discussions, lead
9425	9425	8 meetings, ensure notes are distributed to members, and
9426	9426	9 perform other tasks necessary to support the good-faith
9427	9427	10 advancement of discussions. The Ombudsperson Ombudsman may
9428	9428	11 be paid in full or in part through fees levied on the
9429	9429	12 initiators of the dispute; and
9430	9430	13 (3) determine a single standardized cost for Level 1
9431	9431	14 interconnections, which shall not exceed $200; .
9432	9432	15 (4) require all electric utilities to perform a system
9433	9433	16 impact and facilities study to provide a detailed
9434	9434	17 breakdown of the non-binding costs of operation and an
9435	9435	18 estimate that individually itemizes operational costs,
9436	9436	19 including equipment by type or model, labor, operation and
9437	9437	20 maintenance, engineering and design, permitting, easements
9438	9438	21 and rights-of-way, direct overhead, and indirect overhead;
9439	9439	22 (5) prohibit electric utilities from recovering from
9440	9440	23 an interconnection customer more than 125% of the
9441	9441	24 non-binding cost estimate in the system impact and
9442	9442	25 facilities study described in paragraph (4). An electric
9443	9443	26 utility with a Multi-Year Rate Plan may recover prudent
9444	9444
9445	9445
9446	9446
9447	9447
9448	9448
9449	9449	SB2497 - 262 - LRB104 12224 JDS 22330 b
9450	9450
9451	9451
9452	9452	SB2497- 263 -LRB104 12224 JDS 22330 b SB2497 - 263 - LRB104 12224 JDS 22330 b
9453	9453	SB2497 - 263 - LRB104 12224 JDS 22330 b
9454	9454	1 and reasonable costs of interconnection that are not
9455	9455	2 recoverable from the interconnection customer under this
9456	9456	3 paragraph from all customers through its Multi-Year Rate
9457	9457	4 Plan;
9458	9458	5 (6) open a proceeding, not to exceed 240 days in
9459	9459	6 duration, to create a uniform standard for cost-sharing of
9460	9460	7 interconnections. As used in this paragraph, "cost-sharing
9461	9461	8 of interconnections" means a system under which an
9462	9462	9 electric utility assigns the costs of upgrades to a
9463	9463	10 distribution-voltage substation that exceeds $5,000,000
9464	9464	11 between the interconnection customer that initially causes
9465	9465	12 the upgrade and interconnection customers subsequent in
9466	9466	13 the interconnection queue, not to exceed 10 customers,
9467	9467	14 that directly benefit from the increased hosting capacity
9468	9468	15 from the upgrade, including applicants that subsequently
9469	9469	16 enter the queue;
9470	9470	17 (7) adopt rules, in addition to dispute resolution
9471	9471	18 provisions under the Commission's rules authorized by
9472	9472	19 subsection (h), as long as, upon complaint by an electric
9473	9473	20 utility, an interconnection customer, or an
9474	9474	21 interconnection applicant, the Ombudsperson, or his or her
9475	9475	22 designee, provides a recommended resolution of any dispute
9476	9476	23 within 5 business days after receiving the complaint. The
9477	9477	24 electric utility, the interconnection customer, the
9478	9478	25 interconnection applicant, or any other party authorized
9479	9479	26 to initiate dispute resolution under the Commission's
9480	9480
9481	9481
9482	9482
9483	9483
9484	9484
9485	9485	SB2497 - 263 - LRB104 12224 JDS 22330 b
9486	9486
9487	9487
9488	9488	SB2497- 264 -LRB104 12224 JDS 22330 b SB2497 - 264 - LRB104 12224 JDS 22330 b
9489	9489	SB2497 - 264 - LRB104 12224 JDS 22330 b
9490	9490	1 rules authorized by subsection (h) may include the
9491	9491	2 Ombudsperson's recommendation in any dispute resolution.
9492	9492	3 Nothing in this paragraph prohibits the Ombudsperson from
9493	9493	4 taking part in a dispute as required by this Section or the
9494	9494	5 Commission's rules;
9495	9495	6 (8) require each electric utility to offer flexible
9496	9496	7 interconnection. An interconnection applicant may propose
9497	9497	8 flexible interconnection options and an electric utility
9498	9498	9 shall not unreasonably deny the proposal. If curtailment
9499	9499	10 is expected under the flexible interconnection option, the
9500	9500	11 electric utility shall provide an analysis of the expected
9501	9501	12 rate of curtailment, inclusive of calculations, as well as
9502	9502	13 load, generation, contingency, and system limit
9503	9503	14 assumptions used. Each study of interconnection costs with
9504	9504	15 a cost exceeding $0.30 per watt shall include an
9505	9505	16 evaluation of flexible interconnection options. As used in
9506	9506	17 this paragraph, "flexible interconnection" means active or
9507	9507	18 passive hardware, software, or other controls allowing
9508	9508	19 curtailment of distributed energy resources during grid
9509	9509	20 conditions that might otherwise impact safety or
9510	9510	21 reliability of the distribution system;
9511	9511	22 (9) require all electric utilities to accept any of
9512	9512	23 cash, letters of credit, or bonds as deposit for
9513	9513	24 construction of interconnection facilities or distribution
9514	9514	25 upgrades. Electric utilities shall also provide the option
9515	9515	26 for the electric utility to hold deposit amounts in escrow
9516	9516
9517	9517
9518	9518
9519	9519
9520	9520
9521	9521	SB2497 - 264 - LRB104 12224 JDS 22330 b
9522	9522
9523	9523
9524	9524	SB2497- 265 -LRB104 12224 JDS 22330 b SB2497 - 265 - LRB104 12224 JDS 22330 b
9525	9525	SB2497 - 265 - LRB104 12224 JDS 22330 b
9526	9526	1 by a mutually agreed-upon third-party, with any interest
9527	9527	2 to inure to the benefit of the interconnection customer;
9528	9528	3 (10) require all electric utilities, in studying
9529	9529	4 potential interconnection of distributed energy resources,
9530	9530	5 to present at the feasibility study stage (if applicable)
9531	9531	6 a proposed scope of upgrades and non-binding cost estimate
9532	9532	7 for the customer-selected feeder as well as the
9533	9533	8 non-binding cost estimate and scope of upgrades for up to
9534	9534	9 one other selected feeder if so requested, the additional
9535	9535	10 cost of which shall be borne by the interconnection
9536	9536	11 customer. At the conclusion of the feasibility study the
9537	9537	12 interconnection customer shall be entitled to choose
9538	9538	13 between the two options presented by the electric utility,
9539	9539	14 and notwithstanding any other requirement of this Act,
9540	9540	15 rule, or tariff shall be given the opportunity to reduce
9541	9541	16 system size if doing so would preclude the need for costly
9542	9542	17 upgrades, all decisions shall be made prior to the start
9543	9543	18 of the system impact study (if applicable), after which
9544	9544	19 any further studies shall only be performed on the option
9545	9545	20 selected and no material changes to system size will be
9546	9546	21 allowed. In addition, the electric utility shall present a
9547	9547	22 separate proposed scope and non-binding cost estimate for
9548	9548	23 exceeding any distributed energy resource capacity limits
9549	9549	24 imposed by the electric utility;
9550	9550	25 (11) prohibit the electric utility from conditioning
9551	9551	26 study of an interconnection application on study, deposit,
9552	9552
9553	9553
9554	9554
9555	9555
9556	9556
9557	9557	SB2497 - 265 - LRB104 12224 JDS 22330 b
9558	9558
9559	9559
9560	9560	SB2497- 266 -LRB104 12224 JDS 22330 b SB2497 - 266 - LRB104 12224 JDS 22330 b
9561	9561	SB2497 - 266 - LRB104 12224 JDS 22330 b
9562	9562	1 or approval of any other distributed energy resource ahead
9563	9563	2 in queue, however nothing prohibits an electric utility
9564	9564	3 from identifying contingent upgrades for applicants lower
9565	9565	4 in queue. In such case, the electric utility shall
9566	9566	5 identify the projects ahead of the applicant in the queue
9567	9567	6 to the applicant or interconnection customer;
9568	9568	7 (12) require facilities study, as defined under the
9569	9569	8 Commission's rules adopted pursuant to subsection (h), to
9570	9570	9 include analysis of required easements, including the pin
9571	9571	10 number of each parcel on which customer-acquired easements
9572	9572	11 are needed. The electric utility shall allow use of the
9573	9573	12 electric utility's easements for interconnection
9574	9574	13 facilities and distribution upgrades, including
9575	9575	14 interconnection facilities and distribution upgrades
9576	9576	15 constructed by the applicant, interconnection customer, or
9577	9577	16 a third party on their behalf;
9578	9578	17 (13) require each electric utility to provide guidance
9579	9579	18 20 to applicants lower in queue on the detailed scope,
9580	9580	19 schedule, and cost of contingent upgrades that may become
9581	9581	20 that applicant's responsibility how contingent upgrade 21
9582	9582	21 costs will flow through the interconnection queue, 22
9583	9583	22 inclusive of the order of projects on which those upgrades
9584	9584	23 23 will fall, the allowable timelines for the electric 24
9585	9585	24 distribution utilities to notify the next project 25
9586	9586	25 following the withdrawal of the responsible project, and
9587	9587	26 26 establishing timelines for projects on which these 1
9588	9588
9589	9589
9590	9590
9591	9591
9592	9592
9593	9593	SB2497 - 266 - LRB104 12224 JDS 22330 b
9594	9594
9595	9595
9596	9596	SB2497- 267 -LRB104 12224 JDS 22330 b SB2497 - 267 - LRB104 12224 JDS 22330 b
9597	9597	SB2497 - 267 - LRB104 12224 JDS 22330 b
9598	9598	1 contingent upgrades fall to either pay the additional 2
9599	9599	2 deposit amount or withdraw their project;
9600	9600	3 (14) require each utility to maintain a public queue
9601	9601	4 with project-specific information including nameplate
9602	9602	5 capacity, energy storage nameplate capacity, if any,
9603	9603	6 contingent upgrades, if any, and estimated non-binding
9604	9604	7 interconnection cost provided by the electric utility to
9605	9605	8 the applicant or interconnection customer. The Commission
9606	9606	9 may require additional information be provided under this
9607	9607	10 paragraph; and
9608	9608	11 (15) require each electric utility serving more than
9609	9609	12 100,000 customers on January 1, 2023, to the extent not
9610	9610	13 provided in its multi-year grid plan, to submit to the
9611	9611	14 Commission a plan to implement public dynamic hosting
9612	9612	15 capacity maps not later than January 1, 2026. For the
9613	9613	16 purposes of this paragraph, "dynamic hosting capacity
9614	9614	17 maps" means publicly-facing hosting capacity maps that are
9615	9615	18 updated in real time or not less frequently than daily,
9616	9616	19 based on information received or provided by the electric
9617	9617	20 utility.
9618	9618	21 (16) modify the Standard Agreement for Interconnection
9619	9619	22 of Distributed Energy Resources Facilities described in
9620	9620	23 Section 466.Appendix D and 467.Appendix C or their
9621	9621	24 successors to provide a clear timeline require return of
9622	9622	25 interconnection customer deposits within 30 calendar days
9623	9623	26 of termination of the interconnection agreement, provided
9624	9624
9625	9625
9626	9626
9627	9627
9628	9628
9629	9629	SB2497 - 267 - LRB104 12224 JDS 22330 b
9630	9630
9631	9631
9632	9632	SB2497- 268 -LRB104 12224 JDS 22330 b SB2497 - 268 - LRB104 12224 JDS 22330 b
9633	9633	SB2497 - 268 - LRB104 12224 JDS 22330 b
9634	9634	1 that the electric utility shall not be required to return
9635	9635	2 deposits to the extent such deposit has already been
9636	9636	3 spent.
9637	9637	4 (17) require each electric utility serving more than
9638	9638	5 100,000 customers on January 1, 2023 to promptly return to
9639	9639	6 the interconnection customer any funds collected via a
9640	9640	7 deposit or otherwise for contributions in aid of
9641	9641	8 construction taxes, if:
9642	9642	9 (A) the income tax gross-up amounts paid by the
9643	9643	10 interconnection customer to the electric utility are
9644	9644	11 not remitted, paid, or otherwise transferred to a
9645	9645	12 relevant taxing authority or authorities by the
9646	9646	13 electric utility within 7 years of the date of
9647	9647	14 collection of such funds by the electric utility from
9648	9648	15 the interconnection customer; or
9649	9649	16 (B) to the extent such funds are paid by the
9650	9650	17 utility to the taxing authority, if such funds are
9651	9651	18 refunded to the electric utility by the relevant
9652	9652	19 taxing authority or authorities.
9653	9653	20 An electric utility serving more than 100,000
9654	9654	21 customers on January 1, 2023 shall not collect from an
9655	9655	22 interconnection customer funds meant to address
9656	9656	23 contributions in aid of construction until the tax
9657	9657	24 year in which the electric utility actually makes the
9658	9658	25 associated tax payment, remission, or transfer to the
9659	9659	26 relevant taxing authority.
9660	9660
9661	9661
9662	9662
9663	9663
9664	9664
9665	9665	SB2497 - 268 - LRB104 12224 JDS 22330 b
9666	9666
9667	9667
9668	9668	SB2497- 269 -LRB104 12224 JDS 22330 b SB2497 - 269 - LRB104 12224 JDS 22330 b
9669	9669	SB2497 - 269 - LRB104 12224 JDS 22330 b
9670	9670	1 Nothing in this Section shall prevent an electric
9671	9671	2 utility assessing an interconnection customer charges
9672	9672	3 in the amount of income taxes actually remitted, paid,
9673	9673	4 or otherwise transferred by the electric utility to a
9674	9674	5 relevant taxing authority or authorities that arise
9675	9675	6 from the interconnection customer's interconnection to
9676	9676	7 the electric utility's system, if such amounts are in
9677	9677	8 fact remitted, paid, or otherwise transferred to a
9678	9678	9 relevant taxing authority or authorities.
9679	9679	10 The Commission shall initiate an emergency
9680	9680	11 rulemaking within 90 days of the effective date of
9681	9681	12 this amendatory Act to effectuate the requirements of
9682	9682	13 this paragraph (16).
9683	9683	14 (i) All electricity providers shall begin to offer net
9684	9684	15 metering no later than April 1, 2008.
9685	9685	16 (j) An electricity provider shall provide net metering to
9686	9686	17 eligible customers according to subsections (d), (d-5), and
9687	9687	18 (e). Eligible renewable electrical generating facilities for
9688	9688	19 which eligible customers registered for net metering before
9689	9689	20 January 1, 2025 shall continue to receive net metering
9690	9690	21 services according to subsections (d), (d-5), and (e) of this
9691	9691	22 Section for the lifetime of the system, regardless of whether
9692	9692	23 those retail customers change electricity providers or whether
9693	9693	24 the retail customer benefiting from the system changes. On and
9694	9694	25 after January 1, 2025, any eligible customer that applies for
9695	9695	26 net metering and previously would have qualified under
9696	9696
9697	9697
9698	9698
9699	9699
9700	9700
9701	9701	SB2497 - 269 - LRB104 12224 JDS 22330 b
9702	9702
9703	9703
9704	9704	SB2497- 270 -LRB104 12224 JDS 22330 b SB2497 - 270 - LRB104 12224 JDS 22330 b
9705	9705	SB2497 - 270 - LRB104 12224 JDS 22330 b
9706	9706	1 subsections (d), (d-5), or (e) shall only be eligible for net
9707	9707	2 metering as described in subsection (n).
9708	9708	3 (k) Each electricity provider shall maintain records and
9709	9709	4 report annually to the Commission the total number of net
9710	9710	5 metering customers served by the provider, as well as the
9711	9711	6 type, capacity, and energy sources of the generating systems
9712	9712	7 used by the net metering customers. Nothing in this Section
9713	9713	8 shall limit the ability of an electricity provider to request
9714	9714	9 the redaction of information deemed by the Commission to be
9715	9715	10 confidential business information.
9716	9716	11 (l)(1) Notwithstanding the definition of "eligible
9717	9717	12 customer" in item (ii) of subsection (b) of this Section, each
9718	9718	13 electricity provider shall allow net metering as set forth in
9719	9719	14 this subsection (l) and for the following projects, provided
9720	9720	15 that only electric utilities serving more than 200,000
9721	9721	16 customers as of January 1, 2021 shall provide net metering for
9722	9722	17 projects that are eligible for subparagraph (C) of this
9723	9723	18 paragraph (1) and have energized after the effective date of
9724	9724	19 this amendatory Act of the 102nd General Assembly:
9725	9725	20 (A) properties owned or leased by multiple customers
9726	9726	21 that contribute to the operation of an eligible renewable
9727	9727	22 electrical generating facility through an ownership or
9728	9728	23 leasehold interest of at least 200 watts in such facility,
9729	9729	24 such as a community-owned wind project, a community-owned
9730	9730	25 biomass project, a community-owned solar project, or a
9731	9731	26 community methane digester processing livestock waste from
9732	9732
9733	9733
9734	9734
9735	9735
9736	9736
9737	9737	SB2497 - 270 - LRB104 12224 JDS 22330 b
9738	9738
9739	9739
9740	9740	SB2497- 271 -LRB104 12224 JDS 22330 b SB2497 - 271 - LRB104 12224 JDS 22330 b
9741	9741	SB2497 - 271 - LRB104 12224 JDS 22330 b
9742	9742	1 multiple sources, provided that the facility is also
9743	9743	2 located within the utility's service territory;
9744	9744	3 (B) individual units, apartments, or properties
9745	9745	4 located in a single building that are owned or leased by
9746	9746	5 multiple customers and collectively served by a common
9747	9747	6 eligible renewable electrical generating facility, such as
9748	9748	7 an office or apartment building, a shopping center or
9749	9749	8 strip mall served by photovoltaic panels on the roof; and
9750	9750	9 (C) subscriptions to community renewable generation
9751	9751	10 projects, including community renewable generation
9752	9752	11 projects on the customer's side of the billing meter of a
9753	9753	12 host facility and partially used for the customer's own
9754	9754	13 load.
9755	9755	14 In addition, the nameplate capacity of the eligible
9756	9756	15 renewable electric generating facility that serves the demand
9757	9757	16 of the properties, units, or apartments identified in
9758	9758	17 paragraphs (1) and (2) of this subsection (l) shall not exceed
9759	9759	18 5,000 kilowatts in nameplate capacity in total. Any eligible
9760	9760	19 renewable electrical generating facility or community
9761	9761	20 renewable generation project that is powered by photovoltaic
9762	9762	21 electric energy and installed after the effective date of this
9763	9763	22 amendatory Act of the 99th General Assembly must be installed
9764	9764	23 by a qualified person in compliance with the requirements of
9765	9765	24 Section 16-128A of the Public Utilities Act and any rules or
9766	9766	25 regulations adopted thereunder.
9767	9767	26 (2) Notwithstanding anything to the contrary, an
9768	9768
9769	9769
9770	9770
9771	9771
9772	9772
9773	9773	SB2497 - 271 - LRB104 12224 JDS 22330 b
9774	9774
9775	9775
9776	9776	SB2497- 272 -LRB104 12224 JDS 22330 b SB2497 - 272 - LRB104 12224 JDS 22330 b
9777	9777	SB2497 - 272 - LRB104 12224 JDS 22330 b
9778	9778	1 electricity provider shall provide credits for the electricity
9779	9779	2 produced by the projects described in paragraph (1) of this
9780	9780	3 subsection (l). The electricity provider shall provide credits
9781	9781	4 that include at least energy supply, capacity, transmission,
9782	9782	5 and, if applicable, the purchased energy adjustment on the
9783	9783	6 subscriber's monthly bill equal to the subscriber's share of
9784	9784	7 the production of electricity from the project, as determined
9785	9785	8 by paragraph (3) of this subsection (l). For customers with
9786	9786	9 transmission or capacity charges not charged on a
9787	9787	10 kilowatt-hour basis, the electricity provider shall prepare a
9788	9788	11 reasonable approximation of the kilowatt-hour equivalent value
9789	9789	12 and provide that value as a monetary credit. The electricity
9790	9790	13 provider shall submit these approximation methodologies to the
9791	9791	14 Commission for review, modification, and approval.
9792	9792	15 Notwithstanding anything to the contrary, customers on payment
9793	9793	16 plans or participating in budget billing programs shall have
9794	9794	17 credits applied on a monthly basis.
9795	9795	18 (3) Notwithstanding anything to the contrary and
9796	9796	19 regardless of whether a subscriber to an eligible community
9797	9797	20 renewable generation project receives power and energy service
9798	9798	21 from the electric utility or an alternative retail electric
9799	9799	22 supplier, for projects eligible under paragraph (C) of
9800	9800	23 subparagraph (1) of this subsection (l), electric utilities
9801	9801	24 serving more than 200,000 customers as of January 1, 2021
9802	9802	25 shall provide the monetary credits to a subscriber's
9803	9803	26 subsequent bill for the electricity produced by community
9804	9804
9805	9805
9806	9806
9807	9807
9808	9808
9809	9809	SB2497 - 272 - LRB104 12224 JDS 22330 b
9810	9810
9811	9811
9812	9812	SB2497- 273 -LRB104 12224 JDS 22330 b SB2497 - 273 - LRB104 12224 JDS 22330 b
9813	9813	SB2497 - 273 - LRB104 12224 JDS 22330 b
9814	9814	1 renewable generation projects. The electric utility shall
9815	9815	2 provide monetary credits to a subscriber's subsequent bill at
9816	9816	3 the utility's total price to compare equal to the subscriber's
9817	9817	4 share of the production of electricity from the project, as
9818	9818	5 determined by paragraph (5) of this subsection (l). For the
9819	9819	6 purposes of this subsection, "total price to compare" means
9820	9820	7 the rate or rates published by the Illinois Commerce
9821	9821	8 Commission for energy supply for eligible customers receiving
9822	9822	9 supply service from the electric utility, and shall include
9823	9823	10 energy, capacity, transmission, and the purchased energy
9824	9824	11 adjustment. Notwithstanding anything to the contrary,
9825	9825	12 customers on payment plans or participating in budget billing
9826	9826	13 programs shall have credits applied on a monthly basis. Any
9827	9827	14 applicable credit or reduction in load obligation from the
9828	9828	15 production of the community renewable generating projects
9829	9829	16 receiving a credit under this subsection shall be credited to
9830	9830	17 the electric utility to offset the cost of providing the
9831	9831	18 credit. To the extent that the credit or load obligation
9832	9832	19 reduction does not completely offset the cost of providing the
9833	9833	20 credit to subscribers of community renewable generation
9834	9834	21 projects as described in this subsection, the electric utility
9835	9835	22 may recover the remaining costs through its Multi-Year Rate
9836	9836	23 Plan. All electric utilities serving 200,000 or fewer
9837	9837	24 customers as of January 1, 2021 shall only provide the
9838	9838	25 monetary credits to a subscriber's subsequent bill for the
9839	9839	26 electricity produced by community renewable generation
9840	9840
9841	9841
9842	9842
9843	9843
9844	9844
9845	9845	SB2497 - 273 - LRB104 12224 JDS 22330 b
9846	9846
9847	9847
9848	9848	SB2497- 274 -LRB104 12224 JDS 22330 b SB2497 - 274 - LRB104 12224 JDS 22330 b
9849	9849	SB2497 - 274 - LRB104 12224 JDS 22330 b
9850	9850	1 projects if the subscriber receives power and energy service
9851	9851	2 from the electric utility. Alternative retail electric
9852	9852	3 suppliers providing power and energy service to a subscriber
9853	9853	4 located within the service territory of an electric utility
9854	9854	5 not subject to Sections 16-108.18 and 16-118 shall provide the
9855	9855	6 monetary credits to the subscriber's subsequent bill for the
9856	9856	7 electricity produced by community renewable generation
9857	9857	8 projects.
9858	9858	9 (4) If requested by the owner or operator of a community
9859	9859	10 renewable generating project, an electric utility serving more
9860	9860	11 than 200,000 customers as of January 1, 2021 shall enter into a
9861	9861	12 net crediting agreement with the owner or operator to include
9862	9862	13 a subscriber's subscription fee on the subscriber's monthly
9863	9863	14 electric bill and provide the subscriber with a net credit
9864	9864	15 equivalent to the total bill credit value for that generation
9865	9865	16 period minus the subscription fee, provided the subscription
9866	9866	17 fee is structured as a fixed percentage of bill credit value.
9867	9867	18 The net crediting agreement shall set forth payment terms from
9868	9868	19 the electric utility to the owner or operator of the community
9869	9869	20 renewable generating project, and the electric utility may
9870	9870	21 charge a net crediting fee to the owner or operator of a
9871	9871	22 community renewable generating project that may not exceed 1%
9872	9872	23 2% of the subscription fee bill credit value. Notwithstanding
9873	9873	24 anything to the contrary, an electric utility serving 200,000
9874	9874	25 customers or fewer as of January 1, 2021 shall not be obligated
9875	9875	26 to enter into a net crediting agreement with the owner or
9876	9876
9877	9877
9878	9878
9879	9879
9880	9880
9881	9881	SB2497 - 274 - LRB104 12224 JDS 22330 b
9882	9882
9883	9883
9884	9884	SB2497- 275 -LRB104 12224 JDS 22330 b SB2497 - 275 - LRB104 12224 JDS 22330 b
9885	9885	SB2497 - 275 - LRB104 12224 JDS 22330 b
9886	9886	1 operator of a community renewable generating project. For the
9887	9887	2 purposes of this paragraph (4), "net crediting" means a
9888	9888	3 program offered by an electric utility under which the
9889	9889	4 electric utility, upon authorization by or on behalf of a
9890	9890	5 subscriber, remits the cash value of the subscription fee to
9891	9891	6 the owner or operator of the community renewable generation
9892	9892	7 facility, without regard to whether or not the subscriber has
9893	9893	8 paid the subscriber's monthly electric bill, and places the
9894	9894	9 cash value of the remaining bill credit on the subscriber's
9895	9895	10 bill. The utility shall use the same net crediting format for
9896	9896	11 subscribers on payment plans or participating in budget
9897	9897	12 billing programs.
9898	9898	13 (5) For the purposes of facilitating net metering, the
9899	9899	14 owner or operator of the eligible renewable electrical
9900	9900	15 generating facility or community renewable generation project
9901	9901	16 shall be responsible for determining the amount of the credit
9902	9902	17 that each customer or subscriber participating in a project
9903	9903	18 under this subsection (l) is to receive in the following
9904	9904	19 manner:
9905	9905	20 (A) The owner or operator shall, on a monthly basis,
9906	9906	21 provide to the electric utility the kilowatthours of
9907	9907	22 generation attributable to each of the utility's retail
9908	9908	23 customers and subscribers participating in projects under
9909	9909	24 this subsection (l) in accordance with the customer's or
9910	9910	25 subscriber's share of the eligible renewable electric
9911	9911	26 generating facility's or community renewable generation
9912	9912
9913	9913
9914	9914
9915	9915
9916	9916
9917	9917	SB2497 - 275 - LRB104 12224 JDS 22330 b
9918	9918
9919	9919
9920	9920	SB2497- 276 -LRB104 12224 JDS 22330 b SB2497 - 276 - LRB104 12224 JDS 22330 b
9921	9921	SB2497 - 276 - LRB104 12224 JDS 22330 b
9922	9922	1 project's output of power and energy for such month. The
9923	9923	2 owner or operator shall electronically transmit such
9924	9924	3 calculations and associated documentation to the electric
9925	9925	4 utility, in a format or method set forth in the applicable
9926	9926	5 tariff, on a monthly basis so that the electric utility
9927	9927	6 can reflect the monetary credits on customers' and
9928	9928	7 subscribers' electric utility bills. The electric utility
9929	9929	8 shall be permitted to revise its tariffs to implement the
9930	9930	9 provisions of this amendatory Act of the 102nd General
9931	9931	10 Assembly. The owner or operator shall separately provide
9932	9932	11 the electric utility with the documentation detailing the
9933	9933	12 calculations supporting the credit in the manner set forth
9934	9934	13 in the applicable tariff.
9935	9935	14 (B) For those participating customers and subscribers
9936	9936	15 who receive their energy supply from an alternative retail
9937	9937	16 electric supplier, the electric utility shall remit to the
9938	9938	17 applicable alternative retail electric supplier the
9939	9939	18 information provided under subparagraph (A) of this
9940	9940	19 paragraph (3) for such customers and subscribers in a
9941	9941	20 manner set forth in such alternative retail electric
9942	9942	21 supplier's net metering program, or as otherwise agreed
9943	9943	22 between the utility and the alternative retail electric
9944	9944	23 supplier. The alternative retail electric supplier shall
9945	9945	24 then submit to the utility the amount of the charges for
9946	9946	25 power and energy to be applied to such customers and
9947	9947	26 subscribers, including the amount of the credit associated
9948	9948
9949	9949
9950	9950
9951	9951
9952	9952
9953	9953	SB2497 - 276 - LRB104 12224 JDS 22330 b
9954	9954
9955	9955
9956	9956	SB2497- 277 -LRB104 12224 JDS 22330 b SB2497 - 277 - LRB104 12224 JDS 22330 b
9957	9957	SB2497 - 277 - LRB104 12224 JDS 22330 b
9958	9958	1 with net metering.
9959	9959	2 (C) A participating customer or subscriber may provide
9960	9960	3 authorization as required by applicable law that directs
9961	9961	4 the electric utility to submit information to the owner or
9962	9962	5 operator of the eligible renewable electrical generating
9963	9963	6 facility or community renewable generation project to
9964	9964	7 which the customer or subscriber has an ownership or
9965	9965	8 leasehold interest or a subscription. Such information
9966	9966	9 shall be limited to the components of the net metering
9967	9967	10 credit calculated under this subsection (l), including the
9968	9968	11 bill credit rate, total kilowatthours, and total monetary
9969	9969	12 credit value applied to the customer's or subscriber's
9970	9970	13 bill for the monthly billing period.
9971	9971	14 (l-5) Within 90 days after the effective date of this
9972	9972	15 amendatory Act of the 102nd General Assembly, each electric
9973	9973	16 utility subject to this Section shall file a tariff or tariffs
9974	9974	17 to implement the provisions of subsection (l) of this Section,
9975	9975	18 which shall, consistent with the provisions of subsection (l),
9976	9976	19 describe the terms and conditions under which owners or
9977	9977	20 operators of qualifying properties, units, or apartments may
9978	9978	21 participate in net metering. The Commission shall approve, or
9979	9979	22 approve with modification, the tariff within 120 days after
9980	9980	23 the effective date of this amendatory Act of the 102nd General
9981	9981	24 Assembly.
9982	9982	25 (m) Nothing in this Section shall affect the right of an
9983	9983	26 electricity provider to continue to provide, or the right of a
9984	9984
9985	9985
9986	9986
9987	9987
9988	9988
9989	9989	SB2497 - 277 - LRB104 12224 JDS 22330 b
9990	9990
9991	9991
9992	9992	SB2497- 278 -LRB104 12224 JDS 22330 b SB2497 - 278 - LRB104 12224 JDS 22330 b
9993	9993	SB2497 - 278 - LRB104 12224 JDS 22330 b
9994	9994	1 retail customer to continue to receive service pursuant to a
9995	9995	2 contract for electric service between the electricity provider
9996	9996	3 and the retail customer in accordance with the prices, terms,
9997	9997	4 and conditions provided for in that contract. Either the
9998	9998	5 electricity provider or the customer may require compliance
9999	9999	6 with the prices, terms, and conditions of the contract.
10000	10000	7 (n) On and after January 1, 2025, the net metering
10001	10001	8 services described in subsections (d), (d-5), and (e) of this
10002	10002	9 Section shall no longer be offered, except as to those
10003	10003	10 eligible renewable electrical generating facilities for which
10004	10004	11 retail customers are receiving net metering service under
10005	10005	12 these subsections at the time the net metering services under
10006	10006	13 those subsections are no longer offered; those systems shall
10007	10007	14 continue to receive net metering services described in
10008	10008	15 subsections (d), (d-5), and (e) of this Section for the
10009	10009	16 lifetime of the system, regardless of if those retail
10010	10010	17 customers change electricity providers, or whether the retail
10011	10011	18 customer benefiting from the system changes or whether the
10012	10012	19 retail customer adds storage behind the same meter even if a
10013	10013	20 new interconnection agreement is required. The electric
10014	10014	21 utility serving more than 200,000 customers as of January 1,
10015	10015	22 2021 is responsible for ensuring the billing credits continue
10016	10016	23 without lapse for the lifetime of systems, as required in
10017	10017	24 subsection (o). Those retail customers that begin taking net
10018	10018	25 metering service after the date that net metering services are
10019	10019	26 no longer offered under such subsections shall be subject to
10020	10020
10021	10021
10022	10022
10023	10023
10024	10024
10025	10025	SB2497 - 278 - LRB104 12224 JDS 22330 b
10026	10026
10027	10027
10028	10028	SB2497- 279 -LRB104 12224 JDS 22330 b SB2497 - 279 - LRB104 12224 JDS 22330 b
10029	10029	SB2497 - 279 - LRB104 12224 JDS 22330 b
10030	10030	1 the provisions set forth in the following paragraphs (1)
10031	10031	2 through (3) of this subsection (n):
10032	10032	3 (1) An electricity provider shall charge or credit for
10033	10033	4 the net electricity supplied to eligible customers or
10034	10034	5 provided by eligible customers whose electric supply
10035	10035	6 service is not provided based on hourly pricing in the
10036	10036	7 following manner:
10037	10037	8 (A) If the amount of electricity used by the
10038	10038	9 customer during the monthly billing period exceeds the
10039	10039	10 amount of electricity produced by the customer, then
10040	10040	11 the electricity provider shall charge the customer for
10041	10041	12 the net kilowatt-hour based electricity charges
10042	10042	13 reflected in the customer's electric service rate
10043	10043	14 supplied to and used by the customer as provided in
10044	10044	15 paragraph (3) of this subsection (n).
10045	10045	16 (B) If the amount of electricity produced by a
10046	10046	17 customer during the monthly billing period exceeds the
10047	10047	18 amount of electricity used by the customer during that
10048	10048	19 billing period, then the electricity provider
10049	10049	20 supplying that customer shall apply a 1:1
10050	10050	21 kilowatt-hour energy or monetary credit kilowatt-hour
10051	10051	22 supply charges to the customer's subsequent bill. The
10052	10052	23 customer shall choose between 1:1 kilowatt-hour or
10053	10053	24 monetary credit at the time of application. For the
10054	10054	25 purposes of this subsection, "kilowatt-hour supply
10055	10055	26 charges" means the kilowatt-hour equivalent values for
10056	10056
10057	10057
10058	10058
10059	10059
10060	10060
10061	10061	SB2497 - 279 - LRB104 12224 JDS 22330 b
10062	10062
10063	10063
10064	10064	SB2497- 280 -LRB104 12224 JDS 22330 b SB2497 - 280 - LRB104 12224 JDS 22330 b
10065	10065	SB2497 - 280 - LRB104 12224 JDS 22330 b
10066	10066	1 energy, capacity, transmission, and the purchased
10067	10067	2 energy adjustment, if applicable. Notwithstanding
10068	10068	3 anything to the contrary, customers on payment plans
10069	10069	4 or participating in budget billing programs shall have
10070	10070	5 credits applied on a monthly basis. The electricity
10071	10071	6 provider shall continue to carry over any excess
10072	10072	7 kilowatt-hour or monetary energy credits earned and
10073	10073	8 apply those credits to subsequent billing periods. For
10074	10074	9 customers with transmission or capacity charges not
10075	10075	10 charged on a kilowatt-hour basis, the electricity
10076	10076	11 provider shall prepare a reasonable approximation of
10077	10077	12 the kilowatt-hour equivalent value and provide that
10078	10078	13 value as a monetary credit. The electricity provider
10079	10079	14 shall submit these approximation methodologies to the
10080	10080	15 Commission for review, modification, and approval.
10081	10081	16 (C) (Blank).
10082	10082	17 (2) An electricity provider shall charge or credit for
10083	10083	18 the net electricity supplied to eligible customers or
10084	10084	19 provided by eligible customers whose electric supply
10085	10085	20 service is provided based on hourly pricing in the
10086	10086	21 following manner:
10087	10087	22 (A) If the amount of electricity used by the
10088	10088	23 customer during any hourly period exceeds the amount
10089	10089	24 of electricity produced by the customer, then the
10090	10090	25 electricity provider shall charge the customer for the
10091	10091	26 net electricity supplied to and used by the customer
10092	10092
10093	10093
10094	10094
10095	10095
10096	10096
10097	10097	SB2497 - 280 - LRB104 12224 JDS 22330 b
10098	10098
10099	10099
10100	10100	SB2497- 281 -LRB104 12224 JDS 22330 b SB2497 - 281 - LRB104 12224 JDS 22330 b
10101	10101	SB2497 - 281 - LRB104 12224 JDS 22330 b
10102	10102	1 as provided in paragraph (3) of this subsection (n).
10103	10103	2 (B) If the amount of electricity produced by a
10104	10104	3 customer during any hourly period exceeds the amount
10105	10105	4 of electricity used by the customer during that hourly
10106	10106	5 period, the energy provider shall calculate an energy
10107	10107	6 credit for the net kilowatt-hours produced in such
10108	10108	7 period, and shall apply that credit as a monetary
10109	10109	8 credit to the customer's subsequent bill. The value of
10110	10110	9 the energy credit shall be calculated using the same
10111	10111	10 price per kilowatt-hour as the electric service
10112	10112	11 provider would charge for kilowatt-hour energy sales
10113	10113	12 during that same hourly period and shall also include
10114	10114	13 values for capacity and transmission. For customers
10115	10115	14 with transmission or capacity charges not charged on a
10116	10116	15 kilowatt-hour basis, the electricity provider shall
10117	10117	16 prepare a reasonable approximation of the
10118	10118	17 kilowatt-hour equivalent value and provide that value
10119	10119	18 as a monetary credit. The electricity provider shall
10120	10120	19 submit these approximation methodologies to the
10121	10121	20 Commission for review, modification, and approval.
10122	10122	21 Notwithstanding anything to the contrary, customers on
10123	10123	22 payment plans or participating in budget billing
10124	10124	23 programs shall have credits applied on a monthly
10125	10125	24 basis.
10126	10126	25 (3) An electricity provider shall provide electric
10127	10127	26 service to eligible customers who utilize net metering at
10128	10128
10129	10129
10130	10130
10131	10131
10132	10132
10133	10133	SB2497 - 281 - LRB104 12224 JDS 22330 b
10134	10134
10135	10135
10136	10136	SB2497- 282 -LRB104 12224 JDS 22330 b SB2497 - 282 - LRB104 12224 JDS 22330 b
10137	10137	SB2497 - 282 - LRB104 12224 JDS 22330 b
10138	10138	1 non-discriminatory rates that are identical, with respect
10139	10139	2 to rate structure, retail rate components, and any monthly
10140	10140	3 charges, to the rates that the customer would be charged
10141	10141	4 if not a net metering customer. An electricity provider
10142	10142	5 shall charge the customer for the net electricity supplied
10143	10143	6 to and used by the customer according to the terms of the
10144	10144	7 contract or tariff to which the same customer would be
10145	10145	8 assigned or be eligible for if the customer was not a net
10146	10146	9 metering customer. An electricity provider shall not
10147	10147	10 charge net metering customers any fee or charge or require
10148	10148	11 additional equipment, insurance, or any other requirements
10149	10149	12 not specifically authorized by interconnection standards
10150	10150	13 authorized by the Commission, unless the fee, charge, or
10151	10151	14 other requirement would apply to other similarly situated
10152	10152	15 customers who are not net metering customers. The customer
10153	10153	16 remains responsible for the gross amount of delivery
10154	10154	17 services charges, supply-related charges that are kilowatt
10155	10155	18 based, and all taxes and fees related to such charges. The
10156	10156	19 customer also remains responsible for all taxes and fees
10157	10157	20 that would otherwise be applicable to the net amount of
10158	10158	21 electricity used by the customer. Paragraphs (1) and (2)
10159	10159	22 of this subsection (n) shall not be construed to prevent
10160	10160	23 an arms-length agreement between an electricity provider
10161	10161	24 and an eligible customer that sets forth different prices,
10162	10162	25 terms, and conditions for the provision of net metering
10163	10163	26 service, including, but not limited to, the provision of
10164	10164
10165	10165
10166	10166
10167	10167
10168	10168
10169	10169	SB2497 - 282 - LRB104 12224 JDS 22330 b
10170	10170
10171	10171
10172	10172	SB2497- 283 -LRB104 12224 JDS 22330 b SB2497 - 283 - LRB104 12224 JDS 22330 b
10173	10173	SB2497 - 283 - LRB104 12224 JDS 22330 b
10174	10174	1 the appropriate metering equipment for non-residential
10175	10175	2 customers. Nothing in this paragraph (3) shall be
10176	10176	3 interpreted to mandate that a utility that is only
10177	10177	4 required to provide delivery services to a given customer
10178	10178	5 must also sell electricity to such customer.
10179	10179	6 (o) Within 90 days after the effective date of this
10180	10180	7 amendatory Act of the 102nd General Assembly, each electric
10181	10181	8 utility subject to this Section shall file a tariff, which
10182	10182	9 shall, consistent with the provisions of this Section, propose
10183	10183	10 the terms and conditions under which a customer may
10184	10184	11 participate in net metering. The tariff for electric utilities
10185	10185	12 serving more than 200,000 customers as of January 1, 2021
10186	10186	13 shall also provide a streamlined and transparent bill
10187	10187	14 crediting system for net metering to be managed by the
10188	10188	15 electric utilities. The terms and conditions shall include,
10189	10189	16 but are not limited to, that an electric utility shall manage
10190	10190	17 and maintain billing of net metering credits and charges
10191	10191	18 regardless of if the eligible customer takes net metering
10192	10192	19 under an electric utility or alternative retail electric
10193	10193	20 supplier. The electric utility serving more than 200,000
10194	10194	21 customers as of January 1, 2021 shall process and approve all
10195	10195	22 net metering applications, even if an eligible customer is
10196	10196	23 served by an alternative retail electric supplier; and the
10197	10197	24 utility shall forward application approval to the appropriate
10198	10198	25 alternative retail electric supplier. Eligibility for net
10199	10199	26 metering shall remain with the owner of the utility billing
10200	10200
10201	10201
10202	10202
10203	10203
10204	10204
10205	10205	SB2497 - 283 - LRB104 12224 JDS 22330 b
10206	10206
10207	10207
10208	10208	SB2497- 284 -LRB104 12224 JDS 22330 b SB2497 - 284 - LRB104 12224 JDS 22330 b
10209	10209	SB2497 - 284 - LRB104 12224 JDS 22330 b
10210	10210	1 address such that, if an eligible renewable electrical
10211	10211	2 generating facility changes ownership, the net metering
10212	10212	3 eligibility transfers to the new owner. The electric utility
10213	10213	4 serving more than 200,000 customers as of January 1, 2021
10214	10214	5 shall manage net metering billing for eligible customers to
10215	10215	6 ensure full crediting occurs on electricity bills, including,
10216	10216	7 but not limited to, ensuring net metering crediting begins
10217	10217	8 upon commercial operation date, net metering billing transfers
10218	10218	9 immediately if an eligible customer switches from an electric
10219	10219	10 utility to alternative retail electric supplier or vice versa,
10220	10220	11 and net metering billing transfers between ownership of a
10221	10221	12 valid billing address. All transfers referenced in the
10222	10222	13 preceding sentence shall include transfer of all banked
10223	10223	14 credits. All electric utilities serving 200,000 or fewer
10224	10224	15 customers as of January 1, 2021 shall manage net metering
10225	10225	16 billing for eligible customers receiving power and energy
10226	10226	17 service from the electric utility to ensure full crediting
10227	10227	18 occurs on electricity bills, ensuring net metering crediting
10228	10228	19 begins upon commercial operation date, net metering billing
10229	10229	20 transfers immediately if an eligible customer switches from an
10230	10230	21 electric utility to alternative retail electric supplier or
10231	10231	22 vice versa, and net metering billing transfers between
10232	10232	23 ownership of a valid billing address. Alternative retail
10233	10233	24 electric suppliers providing power and energy service to
10234	10234	25 eligible customers located within the service territory of an
10235	10235	26 electric utility serving 200,000 or fewer customers as of
10236	10236
10237	10237
10238	10238
10239	10239
10240	10240
10241	10241	SB2497 - 284 - LRB104 12224 JDS 22330 b
10242	10242
10243	10243
10244	10244	SB2497- 285 -LRB104 12224 JDS 22330 b SB2497 - 285 - LRB104 12224 JDS 22330 b
10245	10245	SB2497 - 285 - LRB104 12224 JDS 22330 b
10246	10246	1 January 1, 2021 shall manage net metering billing for eligible
10247	10247	2 customers to ensure full crediting occurs on electricity
10248	10248	3 bills, including, but not limited to, ensuring net metering
10249	10249	4 crediting begins upon commercial operation date, net metering
10250	10250	5 billing transfers immediately if an eligible customer switches
10251	10251	6 from an electric utility to alternative retail electric
10252	10252	7 supplier or vice versa, and net metering billing transfers
10253	10253	8 between ownership of a valid billing address.
10254	10254	9 (Source: P.A. 102-662, eff. 9-15-21.)
10255	10255	10 (220 ILCS 5/16-107.6)
10256	10256	11 Sec. 16-107.6. Distributed generation rebate.
10257	10257	12 (a) In this Section:
10258	10258	13 "Additive services" means the services that distributed
10259	10259	14 energy resources provide to the energy system and society that
10260	10260	15 are not (1) already included in the base rebates for
10261	10261	16 system-wide grid services; or (2) otherwise already
10262	10262	17 compensated. Additive services may reflect, but shall not be
10263	10263	18 limited to, any geographic, time-based, performance-based, and
10264	10264	19 other benefits of distributed energy resources, as well as the
10265	10265	20 present and future technological capabilities of distributed
10266	10266	21 energy resources and present and future grid needs.
10267	10267	22 "Distributed energy resource" means a wide range of
10268	10268	23 technologies that are located on the customer side of the
10269	10269	24 customer's electric meter, including, but not limited to,
10270	10270	25 distributed generation, energy storage, electric vehicles, and
10271	10271
10272	10272
10273	10273
10274	10274
10275	10275
10276	10276	SB2497 - 285 - LRB104 12224 JDS 22330 b
10277	10277
10278	10278
10279	10279	SB2497- 286 -LRB104 12224 JDS 22330 b SB2497 - 286 - LRB104 12224 JDS 22330 b
10280	10280	SB2497 - 286 - LRB104 12224 JDS 22330 b
10281	10281	1 demand response technologies.
10282	10282	2 "Energy storage system" means commercially available
10283	10283	3 technology that is capable of absorbing energy and storing it
10284	10284	4 for a period of time for use at a later time, including, but
10285	10285	5 not limited to, electrochemical, thermal, and
10286	10286	6 electromechanical technologies, and may be interconnected
10287	10287	7 behind the customer's meter or interconnected behind its own
10288	10288	8 meter.
10289	10289	9 "Smart inverter" means a device that converts direct
10290	10290	10 current into alternating current and meets the IEEE 1547-2018
10291	10291	11 equipment standards. Until devices that meet the IEEE
10292	10292	12 1547-2018 standard are available, devices that meet the UL
10293	10293	13 1741 SA standard are acceptable.
10294	10294	14 "Subscriber" has the meaning set forth in Section 1-10 of
10295	10295	15 the Illinois Power Agency Act.
10296	10296	16 "Subscription" has the meaning set forth in Section 1-10
10297	10297	17 of the Illinois Power Agency Act.
10298	10298	18 "System-wide grid services" means the benefits that a
10299	10299	19 distributed energy resource provides to the distribution grid
10300	10300	20 for a period of no less than 25 years. System-wide grid
10301	10301	21 services do not vary by location, time, or the performance
10302	10302	22 characteristics of the distributed energy resource.
10303	10303	23 System-wide grid services include, but are not limited to,
10304	10304	24 avoided or deferred distribution capacity costs, resilience
10305	10305	25 and reliability benefits, avoided or deferred distribution
10306	10306	26 operation and maintenance costs, distribution voltage and
10307	10307
10308	10308
10309	10309
10310	10310
10311	10311
10312	10312	SB2497 - 286 - LRB104 12224 JDS 22330 b
10313	10313
10314	10314
10315	10315	SB2497- 287 -LRB104 12224 JDS 22330 b SB2497 - 287 - LRB104 12224 JDS 22330 b
10316	10316	SB2497 - 287 - LRB104 12224 JDS 22330 b
10317	10317	1 power quality benefits, and line loss reductions.
10318	10318	2 "Threshold date" means December 31, 2024 or the date on
10319	10319	3 which the utility's tariff or tariffs setting the new
10320	10320	4 compensation values established under subsection (e) take
10321	10321	5 effect, whichever is later.
10322	10322	6 (b) An electric utility that serves more than 200,000
10323	10323	7 customers in the State shall file a petition with the
10324	10324	8 Commission requesting approval of the utility's tariff to
10325	10325	9 provide a rebate to the owner or operator of distributed
10326	10326	10 generation, including third-party owned systems, that meets
10327	10327	11 the following criteria:
10328	10328	12 (1) has a nameplate generating capacity no greater
10329	10329	13 than 5,000 kilowatts and is primarily used to offset a
10330	10330	14 customer's electricity load;
10331	10331	15 (2) is located on the customer's side of the billing
10332	10332	16 meter and for the customer's own use;
10333	10333	17 (3) is interconnected to electric distribution
10334	10334	18 facilities owned by the electric utility under rules
10335	10335	19 adopted by the Commission by means of the inverter or
10336	10336	20 smart inverter required by this Section, as applicable.
10337	10337	21 For purposes of this Section, "distributed generation"
10338	10338	22 shall satisfy the definition of distributed renewable energy
10339	10339	23 generation device set forth in Section 1-10 of the Illinois
10340	10340	24 Power Agency Act to the extent such definition is consistent
10341	10341	25 with the requirements of this Section.
10342	10342	26 In addition, any new photovoltaic distributed generation
10343	10343
10344	10344
10345	10345
10346	10346
10347	10347
10348	10348	SB2497 - 287 - LRB104 12224 JDS 22330 b
10349	10349
10350	10350
10351	10351	SB2497- 288 -LRB104 12224 JDS 22330 b SB2497 - 288 - LRB104 12224 JDS 22330 b
10352	10352	SB2497 - 288 - LRB104 12224 JDS 22330 b
10353	10353	1 that is installed after June 1, 2017 (the effective date of
10354	10354	2 Public Act 99-906) must be installed by a qualified person, as
10355	10355	3 defined by subsection (i) of Section 1-56 of the Illinois
10356	10356	4 Power Agency Act.
10357	10357	5 The tariff shall include a base rebate that compensates
10358	10358	6 distributed generation for the system-wide grid services
10359	10359	7 associated with distributed generation and, after the
10360	10360	8 proceeding described in subsection (e) of this Section, an
10361	10361	9 additional payment or payments for the additive services. The
10362	10362	10 tariff shall provide that the smart inverter associated with
10363	10363	11 the distributed generation shall provide autonomous response
10364	10364	12 to grid conditions through its default settings as approved by
10365	10365	13 the Commission. Default settings may not be changed after the
10366	10366	14 execution of the interconnection agreement except by mutual
10367	10367	15 agreement between the utility and the owner or operator of the
10368	10368	16 distributed generation. Nothing in this Section shall negate
10369	10369	17 or supersede Institute of Electrical and Electronics Engineers
10370	10370	18 equipment standards or other similar standards or
10371	10371	19 requirements. The tariff shall not limit the ability of the
10372	10372	20 smart inverter or other distributed energy resource to provide
10373	10373	21 wholesale market products such as regulation, demand response,
10374	10374	22 or other services, or limit the ability of the owner of the
10375	10375	23 smart inverter or the other distributed energy resource to
10376	10376	24 receive compensation for providing those wholesale market
10377	10377	25 products or services.
10378	10378	26 (b-5) Within 30 days after the effective date of this
10379	10379
10380	10380
10381	10381
10382	10382
10383	10383
10384	10384	SB2497 - 288 - LRB104 12224 JDS 22330 b
10385	10385
10386	10386
10387	10387	SB2497- 289 -LRB104 12224 JDS 22330 b SB2497 - 289 - LRB104 12224 JDS 22330 b
10388	10388	SB2497 - 289 - LRB104 12224 JDS 22330 b
10389	10389	1 amendatory Act of the 102nd General Assembly, each electric
10390	10390	2 public utility with 3,000,000 or more retail customers shall
10391	10391	3 file a tariff with the Commission that further compensates any
10392	10392	4 retail customer that installs or has installed photovoltaic
10393	10393	5 facilities paired with energy storage facilities on or
10394	10394	6 adjacent to its premises for the benefits the facilities
10395	10395	7 provide to the distribution grid. The tariff shall provide
10396	10396	8 that, in addition to the other rebates identified in this
10397	10397	9 Section, the electric utility shall rebate to such retail
10398	10398	10 customer (i) the previously incurred and future costs of
10399	10399	11 installing interconnection facilities and related
10400	10400	12 infrastructure to enable full participation in the PJM
10401	10401	13 Interconnection, LLC or its successor organization frequency
10402	10402	14 regulation market; and (ii) all wholesale demand charges
10403	10403	15 incurred after the effective date of this amendatory Act of
10404	10404	16 the 102nd General Assembly. The Commission shall approve, or
10405	10405	17 approve with modification, the tariff within 120 days after
10406	10406	18 the utility's filing.
10407	10407	19 (c) The proposed tariff authorized by subsection (b) of
10408	10408	20 this Section shall include the following participation terms
10409	10409	21 for rebates to be applied under this Section for distributed
10410	10410	22 generation that satisfies the criteria set forth in subsection
10411	10411	23 (b) of this Section:
10412	10412	24 (1) The owner or operator of distributed generation
10413	10413	25 that services customers not eligible for net metering
10414	10414	26 under subsection (d), (d-5), or (e) of Section 16-107.5 of
10415	10415
10416	10416
10417	10417
10418	10418
10419	10419
10420	10420	SB2497 - 289 - LRB104 12224 JDS 22330 b
10421	10421
10422	10422
10423	10423	SB2497- 290 -LRB104 12224 JDS 22330 b SB2497 - 290 - LRB104 12224 JDS 22330 b
10424	10424	SB2497 - 290 - LRB104 12224 JDS 22330 b
10425	10425	1 this Act may apply for a rebate as provided for in this
10426	10426	2 Section. Until the threshold date, the value of the rebate
10427	10427	3 shall be $250 per kilowatt of nameplate generating
10428	10428	4 capacity, measured as nominal DC power output, of that
10429	10429	5 customer's distributed generation. To the extent the
10430	10430	6 distributed generation also has an associated energy
10431	10431	7 storage, then the energy storage system shall be
10432	10432	8 separately compensated with a base rebate of $250 per
10433	10433	9 kilowatt-hour of nameplate capacity. Any distributed
10434	10434	10 generation device that is compensated for storage in this
10435	10435	11 subsection (1) before the threshold date shall participate
10436	10436	12 in one or more programs determined through the Multi-Year
10437	10437	13 Integrated Grid Planning process that are designed to meet
10438	10438	14 peak reduction and flexibility, the virtual power plant
10439	10439	15 program described in Section 16-107.9, or the peak
10440	10440	16 remediation program described in Section 16-107.10. After
10441	10441	17 the threshold date, the value of the base rebate and
10442	10442	18 additional compensation for any additive services shall be
10443	10443	19 as determined by the Commission in the proceeding
10444	10444	20 described in subsection (e) of this Section, provided that
10445	10445	21 the value of the base rebate for system-wide grid services
10446	10446	22 shall not be lower than $250 per kilowatt of nameplate
10447	10447	23 generating capacity of distributed generation or community
10448	10448	24 renewable generation project and shall not be lower than
10449	10449	25 $150 per kilowatt-hour of nameplate generating capacity of
10450	10450	26 associated energy storage.
10451	10451
10452	10452
10453	10453
10454	10454
10455	10455
10456	10456	SB2497 - 290 - LRB104 12224 JDS 22330 b
10457	10457
10458	10458
10459	10459	SB2497- 291 -LRB104 12224 JDS 22330 b SB2497 - 291 - LRB104 12224 JDS 22330 b
10460	10460	SB2497 - 291 - LRB104 12224 JDS 22330 b
10461	10461	1 (2) The owner or operator of distributed generation
10462	10462	2 that, before the threshold date, would have been eligible
10463	10463	3 for net metering under subsection (d), (d-5), or (e) of
10464	10464	4 Section 16-107.5 of this Act and that has not previously
10465	10465	5 received a distributed generation rebate, may apply for a
10466	10466	6 rebate as provided for in this Section. Until the
10467	10467	7 threshold date, the value of the base rebate shall be $300
10468	10468	8 per kilowatt of nameplate generating capacity, measured as
10469	10469	9 nominal DC power output, of the distributed generation.
10470	10470	10 The owner or operator of distributed generation that,
10471	10471	11 before the threshold date, is eligible for net metering
10472	10472	12 under subsection (d), (d-5), or (e) of Section 16-107.5 of
10473	10473	13 this Act may apply for a base rebate for an energy storage
10474	10474	14 device that uses the same smart inverter as the
10475	10475	15 distributed generation, regardless of whether the
10476	10476	16 distributed generation applies for a rebate for the
10477	10477	17 distributed generation device. The energy storage system
10478	10478	18 shall be separately compensated at a base payment of $300
10479	10479	19 per kilowatt-hour of nameplate capacity. Any distributed
10480	10480	20 generation device that is compensated for storage in this
10481	10481	21 subsection (2) before the threshold date shall participate
10482	10482	22 in the virtual power plant program described in Section
10483	10483	23 16-107.9, or at least one demand response a peak time
10484	10484	24 rebate program, hourly pricing program, or time-of-use
10485	10485	25 rate program that is offered by the applicable electric
10486	10486	26 utility, an alternative retail electric supplier, or an
10487	10487
10488	10488
10489	10489
10490	10490
10491	10491
10492	10492	SB2497 - 291 - LRB104 12224 JDS 22330 b
10493	10493
10494	10494
10495	10495	SB2497- 292 -LRB104 12224 JDS 22330 b SB2497 - 292 - LRB104 12224 JDS 22330 b
10496	10496	SB2497 - 292 - LRB104 12224 JDS 22330 b
10497	10497	1 entity qualified to offer demand response that is not an
10498	10498	2 alternative retail electric supplier. After the threshold
10499	10499	3 date, the value of the base rebate and additional
10500	10500	4 compensation for any additive services shall be as
10501	10501	5 determined by the Commission in the proceeding described
10502	10502	6 in subsection (e) of this Section, provided that, prior to
10503	10503	7 December 31, 2029, the value of the base rebate for
10504	10504	8 system-wide services shall not be lower than $300 per
10505	10505	9 kilowatt of nameplate generating capacity of distributed
10506	10506	10 generation, after which it shall not be lower than $250
10507	10507	11 per kilowatt of nameplate capacity and shall not be lower
10508	10508	12 than $150 per kilowatt-hour of nameplate generating
10509	10509	13 capacity of associated energy storage.
10510	10510	14 (3) Upon approval of a rebate application submitted
10511	10511	15 under this subsection (c), the retail customer shall no
10512	10512	16 longer be entitled to receive any delivery service credits
10513	10513	17 for the excess electricity generated by its facility and
10514	10514	18 shall be subject to the provisions of subsection (n) of
10515	10515	19 Section 16-107.5 of this Act unless the owner or operator
10516	10516	20 receives a rebate only for an energy storage device and
10517	10517	21 not for the distributed generation device.
10518	10518	22 (4) To be eligible for a rebate described in this
10519	10519	23 subsection (c), the owner or operator of the distributed
10520	10520	24 generation must have a smart inverter installed and in
10521	10521	25 operation on the distributed generation.
10522	10522	26 (5) Any distributed generation or energy storage
10523	10523
10524	10524
10525	10525
10526	10526
10527	10527
10528	10528	SB2497 - 292 - LRB104 12224 JDS 22330 b
10529	10529
10530	10530
10531	10531	SB2497- 293 -LRB104 12224 JDS 22330 b SB2497 - 293 - LRB104 12224 JDS 22330 b
10532	10532	SB2497 - 293 - LRB104 12224 JDS 22330 b
10533	10533	1 device applying for a rebate under paragraphs (1) or (2)
10534	10534	2 of this subsection (c) after the effective date of this
10535	10535	3 Amendatory Act of the 104th General Assembly shall be
10536	10536	4 eligible for the following additional payment or payments
10537	10537	5 in addition to the applicable rebate under paragraphs (1)
10538	10538	6 or (2) of this subsection (c):
10539	10539	7 (A) An amount set by the tariff approved pursuant
10540	10540	8 to subsection (e) of this Section but not less than
10541	10541	9 $25/kWdc for distributed generation or $25/kWh of
10542	10542	10 nameplate capacity for energy storage devices (whether
10543	10543	11 or not paired with distributed generation) located in
10544	10544	12 an equity investment eligible community, as defined in
10545	10545	13 Section 1-10 of the Illinois Power Agency Act, at the
10546	10546	14 time the interconnection agreement is signed.
10547	10547	15 Notwithstanding anything to the contrary, a community
10548	10548	16 renewable generation project and energy storage
10549	10549	17 devices coupled with a community renewable generation
10550	10550	18 project shall be eligible for the rebates described in
10551	10551	19 this subparagraph;
10552	10552	20 (B) An amount set by the tariff approved pursuant
10553	10553	21 to subsection (e) of this Section but not less than
10554	10554	22 $100/kWh of nameplate capacity for energy storage
10555	10555	23 devices that neither share an inverter with
10556	10556	24 distributed generation nor are interconnected behind
10557	10557	25 the same retail customer meter as distributed
10558	10558	26 generation.
10559	10559
10560	10560
10561	10561
10562	10562
10563	10563
10564	10564	SB2497 - 293 - LRB104 12224 JDS 22330 b
10565	10565
10566	10566
10567	10567	SB2497- 294 -LRB104 12224 JDS 22330 b SB2497 - 294 - LRB104 12224 JDS 22330 b
10568	10568	SB2497 - 294 - LRB104 12224 JDS 22330 b
10569	10569	1 (d) The Commission shall review the proposed tariff
10570	10570	2 authorized by subsection (b) of this Section and may make
10571	10571	3 changes to the tariff that are consistent with this Section
10572	10572	4 and with the Commission's authority under Article IX of this
10573	10573	5 Act, subject to notice and hearing. Following notice and
10574	10574	6 hearing, the Commission shall issue an order approving, or
10575	10575	7 approving with modification, such tariff no later than 240
10576	10576	8 days after the utility files its tariff. Upon the effective
10577	10577	9 date of this amendatory Act of the 102nd General Assembly, an
10578	10578	10 electric utility shall file a petition with the Commission to
10579	10579	11 amend and update any existing tariffs to comply with
10580	10580	12 subsections (b) and (c).
10581	10581	13 (e) By no later than June 30, 2023, the Commission shall
10582	10582	14 open an independent, statewide investigation into the value
10583	10583	15 of, and compensation for, distributed energy resources. The
10584	10584	16 Commission shall conduct the investigation, but may arrange
10585	10585	17 for experts or consultants independent of the utilities and
10586	10586	18 selected by the Commission to assist with the investigation.
10587	10587	19 The cost of the investigation shall be shared by the utilities
10588	10588	20 filing tariffs under subsection (b) of this Section but may be
10589	10589	21 recovered as an expense through normal ratemaking procedures.
10590	10590	22 (1) The Commission shall ensure that the investigation
10591	10591	23 includes, at minimum, diverse sets of stakeholders; a
10592	10592	24 review of best practices in calculating the value of
10593	10593	25 distributed energy resource benefits; a review of the full
10594	10594	26 value of the distributed energy resources and the manner
10595	10595
10596	10596
10597	10597
10598	10598
10599	10599
10600	10600	SB2497 - 294 - LRB104 12224 JDS 22330 b
10601	10601
10602	10602
10603	10603	SB2497- 295 -LRB104 12224 JDS 22330 b SB2497 - 295 - LRB104 12224 JDS 22330 b
10604	10604	SB2497 - 295 - LRB104 12224 JDS 22330 b
10605	10605	1 in which each component of that value is or is not
10606	10606	2 otherwise compensated; and assessments of how the value of
10607	10607	3 distributed energy resources may evolve based on the
10608	10608	4 present and future technological capabilities of
10609	10609	5 distributed energy resources and based on present and
10610	10610	6 future grid needs.
10611	10611	7 (2) The Commission's final order concluding this
10612	10612	8 investigation shall establish an annual process and
10613	10613	9 formula for the compensation of distributed generation and
10614	10614	10 energy storage systems, and an initial set of inputs for
10615	10615	11 that formula. The Commission's final order concluding this
10616	10616	12 investigation shall establish base rebates that compensate
10617	10617	13 distributed generation, community renewable generation
10618	10618	14 projects and energy storage systems for the system-wide
10619	10619	15 grid services that they provide. Those base rebate values
10620	10620	16 shall be consistent across the state, and shall not vary
10621	10621	17 by customer, customer class, customer location, or any
10622	10622	18 other variable. With respect to rebates for distributed
10623	10623	19 generation or community renewable generation projects,
10624	10624	20 that rebate shall not be lower than $250 per kilowatt of
10625	10625	21 nameplate generating capacity of the distributed
10626	10626	22 generation or community renewable generation project. The
10627	10627	23 Commission's final order concluding this proceeding shall
10628	10628	24 also direct the utilities to update the formula, on an
10629	10629	25 annual basis, with inputs derived from their integrated
10630	10630	26 grid plans developed pursuant to Section 16-105.17. The
10631	10631
10632	10632
10633	10633
10634	10634
10635	10635
10636	10636	SB2497 - 295 - LRB104 12224 JDS 22330 b
10637	10637
10638	10638
10639	10639	SB2497- 296 -LRB104 12224 JDS 22330 b SB2497 - 296 - LRB104 12224 JDS 22330 b
10640	10640	SB2497 - 296 - LRB104 12224 JDS 22330 b
10641	10641	1 base rebate shall be updated annually based on the annual
10642	10642	2 updates to the formula inputs, but, with respect to
10643	10643	3 rebates for distributed generation or community renewable
10644	10644	4 generation projects, shall be no lower than $250 per
10645	10645	5 kilowatt of nameplate generating capacity of the
10646	10646	6 distributed generation or community renewable generation
10647	10647	7 project.
10648	10648	8 (3) The Commission shall also determine, as a part of
10649	10649	9 its investigation under this subsection, whether
10650	10650	10 distributed energy resources can provide any additive
10651	10651	11 services. Those additive services may include services
10652	10652	12 that are provided through utility-controlled responses to
10653	10653	13 grid conditions. If the Commission determines that
10654	10654	14 distributed energy resources can provide additive grid
10655	10655	15 services, the Commission shall determine the terms and
10656	10656	16 conditions for the operation and compensation of those
10657	10657	17 services. That compensation shall be above and beyond the
10658	10658	18 base rebate that the distributed energy generation,
10659	10659	19 community renewable generation project and energy storage
10660	10660	20 system receives. Compensation for additive services may
10661	10661	21 vary by location, time, performance characteristics,
10662	10662	22 technology types, or other variables.
10663	10663	23 (4) The Commission shall ensure that compensation for
10664	10664	24 distributed energy resources, including base rebates and
10665	10665	25 any payments for additive services, shall reflect all
10666	10666	26 reasonably known and measurable values of the distributed
10667	10667
10668	10668
10669	10669
10670	10670
10671	10671
10672	10672	SB2497 - 296 - LRB104 12224 JDS 22330 b
10673	10673
10674	10674
10675	10675	SB2497- 297 -LRB104 12224 JDS 22330 b SB2497 - 297 - LRB104 12224 JDS 22330 b
10676	10676	SB2497 - 297 - LRB104 12224 JDS 22330 b
10677	10677	1 generation over its full expected useful life.
10678	10678	2 Compensation for additive services shall reflect, but
10679	10679	3 shall not be limited to, any geographic, time-based,
10680	10680	4 performance-based, and other benefits of distributed
10681	10681	5 generation, as well as the present and future
10682	10682	6 technological capabilities of distributed energy resources
10683	10683	7 and present and future grid needs.
10684	10684	8 (5) The Commission shall consider the electric
10685	10685	9 utility's integrated grid plan developed pursuant to
10686	10686	10 Section 16-105.17 of this Act to help identify the value
10687	10687	11 of distributed energy resources for the purpose of
10688	10688	12 calculating the compensation described in this subsection.
10689	10689	13 (6) The Commission shall determine additional
10690	10690	14 compensation for distributed energy resources that creates
10691	10691	15 savings and value on the distribution system by being
10692	10692	16 co-located or in close proximity to electric vehicle
10693	10693	17 charging infrastructure in use by medium-duty and
10694	10694	18 heavy-duty vehicles, primarily serving environmental
10695	10695	19 justice communities, as outlined in the utility integrated
10696	10696	20 grid planning process under Section 16-105.17 of this Act.
10697	10697	21 No later than 60 days after the Commission enters its
10698	10698	22 final order under this subsection (e), each utility shall file
10699	10699	23 its updated tariff or tariffs in compliance with the order,
10700	10700	24 including new tariffs for the recovery of costs incurred under
10701	10701	25 this subsection (e) that shall provide for volumetric-based
10702	10702	26 cost recovery, and the Commission shall approve, or approve
10703	10703
10704	10704
10705	10705
10706	10706
10707	10707
10708	10708	SB2497 - 297 - LRB104 12224 JDS 22330 b
10709	10709
10710	10710
10711	10711	SB2497- 298 -LRB104 12224 JDS 22330 b SB2497 - 298 - LRB104 12224 JDS 22330 b
10712	10712	SB2497 - 298 - LRB104 12224 JDS 22330 b
10713	10713	1 with modification, the tariff or tariffs within 240 days after
10714	10714	2 the utility's filing.
10715	10715	3 (f) Notwithstanding any provision of this Act to the
10716	10716	4 contrary, the owner or operator of a community renewable
10717	10717	5 generation project as defined in Section 1-10 of the Illinois
10718	10718	6 Power Agency Act shall also be eligible to apply for the rebate
10719	10719	7 described in this Section. The owner or operator of the
10720	10720	8 community renewable generation project may apply for a rebate
10721	10721	9 only if the owner or operator, or previous owner or operator,
10722	10722	10 of the community renewable generation project has not already
10723	10723	11 submitted an application, and, regardless of whether the
10724	10724	12 subscriber is a residential or non-residential customer, may
10725	10725	13 be allowed the amount identified in paragraph (1) of
10726	10726	14 subsection (c) applicable on the date that the application is
10727	10727	15 submitted.
10728	10728	16 (g) The owner of the distributed generation or community
10729	10729	17 renewable generation project may apply for the rebate or
10730	10730	18 rebates approved under this Section at the time of execution
10731	10731	19 of an interconnection agreement with the distribution utility
10732	10732	20 and shall receive the value available at that time of
10733	10733	21 execution of the interconnection agreement, provided the
10734	10734	22 project reaches mechanical completion within 24 months after
10735	10735	23 execution of the interconnection agreement. If the project has
10736	10736	24 not reached mechanical completion within 24 months after
10737	10737	25 execution, the owner may reapply for the rebate or rebates
10738	10738	26 approved under this Section available at the time of
10739	10739
10740	10740
10741	10741
10742	10742
10743	10743
10744	10744	SB2497 - 298 - LRB104 12224 JDS 22330 b
10745	10745
10746	10746
10747	10747	SB2497- 299 -LRB104 12224 JDS 22330 b SB2497 - 299 - LRB104 12224 JDS 22330 b
10748	10748	SB2497 - 299 - LRB104 12224 JDS 22330 b
10749	10749	1 application and shall receive the value available at the time
10750	10750	2 of application. The utility shall issue the rebate no later
10751	10751	3 than 60 days after the project is energized. In the event the
10752	10752	4 application is incomplete or the utility is otherwise unable
10753	10753	5 to calculate the payment based on the information provided by
10754	10754	6 the owner, the utility shall issue the payment no later than 60
10755	10755	7 days after the application is complete or all requested
10756	10756	8 information is received.
10757	10757	9 (h) An electric utility shall recover from its retail
10758	10758	10 customers all of the costs of the rebates made under a tariff
10759	10759	11 or tariffs approved under subsection (d) of this Section,
10760	10760	12 including, but not limited to, the value of the rebates and all
10761	10761	13 costs incurred by the utility to comply with and implement
10762	10762	14 subsections (b) and (c) of this Section, but not including
10763	10763	15 costs incurred by the utility to comply with and implement
10764	10764	16 subsection (e) of this Section, consistent with the following
10765	10765	17 provisions:
10766	10766	18 (1) The utility shall defer the full amount of its
10767	10767	19 costs as a regulatory asset. The total costs deferred as a
10768	10768	20 regulatory asset shall be amortized over a 15-year period.
10769	10769	21 The unamortized balance shall be recognized as of December
10770	10770	22 31 for a given year. The utility shall also earn a return
10771	10771	23 on the total of the unamortized balance of the regulatory
10772	10772	24 assets, less any deferred taxes related to the unamortized
10773	10773	25 balance, at an annual rate equal to the utility's weighted
10774	10774	26 average cost of capital that includes, based on a year-end
10775	10775
10776	10776
10777	10777
10778	10778
10779	10779
10780	10780	SB2497 - 299 - LRB104 12224 JDS 22330 b
10781	10781
10782	10782
10783	10783	SB2497- 300 -LRB104 12224 JDS 22330 b SB2497 - 300 - LRB104 12224 JDS 22330 b
10784	10784	SB2497 - 300 - LRB104 12224 JDS 22330 b
10785	10785	1 capital structure, the utility's actual cost of debt for
10786	10786	2 the applicable calendar year and a cost of equity, which
10787	10787	3 shall be calculated as the sum of (i) the average for the
10788	10788	4 applicable calendar year of the monthly average yields of
10789	10789	5 30-year U.S. Treasury bonds published by the Board of
10790	10790	6 Governors of the Federal Reserve System in its weekly H.15
10791	10791	7 Statistical Release or successor publication; and (ii) 580
10792	10792	8 basis points, including a revenue conversion factor
10793	10793	9 calculated to recover or refund all additional income
10794	10794	10 taxes that may be payable or receivable as a result of that
10795	10795	11 return.
10796	10796	12 When an electric utility creates a regulatory asset
10797	10797	13 under the provisions of this paragraph (1) of subsection
10798	10798	14 (h), the costs are recovered over a period during which
10799	10799	15 customers also receive a benefit, which is in the public
10800	10800	16 interest. Accordingly, it is the intent of the General
10801	10801	17 Assembly that an electric utility that elects to create a
10802	10802	18 regulatory asset under the provisions of this paragraph
10803	10803	19 (1) shall recover all of the associated costs, including,
10804	10804	20 but not limited to, its cost of capital as set forth in
10805	10805	21 this paragraph (1). After the Commission has approved the
10806	10806	22 prudence and reasonableness of the costs that comprise the
10807	10807	23 regulatory asset, the electric utility shall be permitted
10808	10808	24 to recover all such costs, and the value and
10809	10809	25 recoverability through rates of the associated regulatory
10810	10810	26 asset shall not be limited, altered, impaired, or reduced.
10811	10811
10812	10812
10813	10813
10814	10814
10815	10815
10816	10816	SB2497 - 300 - LRB104 12224 JDS 22330 b
10817	10817
10818	10818
10819	10819	SB2497- 301 -LRB104 12224 JDS 22330 b SB2497 - 301 - LRB104 12224 JDS 22330 b
10820	10820	SB2497 - 301 - LRB104 12224 JDS 22330 b
10821	10821	1 To enable the financing of the incremental capital
10822	10822	2 expenditures, including regulatory assets, for electric
10823	10823	3 utilities that serve less than 3,000,000 retail customers
10824	10824	4 but more than 500,000 retail customers in the State, the
10825	10825	5 utility's actual year-end capital structure that includes
10826	10826	6 a common equity ratio, excluding goodwill, of up to and
10827	10827	7 including 50% of the total capital structure shall be
10828	10828	8 deemed reasonable and used to set rates.
10829	10829	9 (2) The utility, at its election, may recover all of
10830	10830	10 the costs as part of a filing for a general increase in
10831	10831	11 rates under Article IX of this Act, as part of an annual
10832	10832	12 filing to update a performance-based formula rate under
10833	10833	13 subsection (d) of Section 16-108.5 of this Act, or through
10834	10834	14 an automatic adjustment clause tariff, provided that
10835	10835	15 nothing in this paragraph (2) permits the double recovery
10836	10836	16 of such costs from customers. If the utility elects to
10837	10837	17 recover the costs it incurs under subsections (b) and (c)
10838	10838	18 through an automatic adjustment clause tariff, the utility
10839	10839	19 may file its proposed tariff together with the tariff it
10840	10840	20 files under subsection (b) of this Section or at a later
10841	10841	21 time. The proposed tariff shall provide for an annual
10842	10842	22 reconciliation, less any deferred taxes related to the
10843	10843	23 reconciliation, with interest at an annual rate of return
10844	10844	24 equal to the utility's weighted average cost of capital as
10845	10845	25 calculated under paragraph (1) of this subsection (h),
10846	10846	26 including a revenue conversion factor calculated to
10847	10847
10848	10848
10849	10849
10850	10850
10851	10851
10852	10852	SB2497 - 301 - LRB104 12224 JDS 22330 b
10853	10853
10854	10854
10855	10855	SB2497- 302 -LRB104 12224 JDS 22330 b SB2497 - 302 - LRB104 12224 JDS 22330 b
10856	10856	SB2497 - 302 - LRB104 12224 JDS 22330 b
10857	10857	1 recover or refund all additional income taxes that may be
10858	10858	2 payable or receivable as a result of that return, of the
10859	10859	3 revenue requirement reflected in rates for each calendar
10860	10860	4 year, beginning with the calendar year in which the
10861	10861	5 utility files its automatic adjustment clause tariff under
10862	10862	6 this subsection (h), with what the revenue requirement
10863	10863	7 would have been had the actual cost information for the
10864	10864	8 applicable calendar year been available at the filing
10865	10865	9 date. The Commission shall review the proposed tariff and
10866	10866	10 may make changes to the tariff that are consistent with
10867	10867	11 this Section and with the Commission's authority under
10868	10868	12 Article IX of this Act, subject to notice and hearing.
10869	10869	13 Following notice and hearing, the Commission shall issue
10870	10870	14 an order approving, or approving with modification, such
10871	10871	15 tariff no later than 240 days after the utility files its
10872	10872	16 tariff.
10873	10873	17 (i) An electric utility shall recover from its retail
10874	10874	18 customers, on a volumetric basis, all of the costs of the
10875	10875	19 rebates made under a tariff or tariffs placed into effect
10876	10876	20 under subsection (e) of this Section, including, but not
10877	10877	21 limited to, the value of the rebates and all costs incurred by
10878	10878	22 the utility to comply with and implement subsection (e) of
10879	10879	23 this Section, consistent with the following provisions:
10880	10880	24 (1) The utility may defer a portion of its costs as a
10881	10881	25 regulatory asset. The Commission shall determine the
10882	10882	26 portion that may be appropriately deferred as a regulatory
10883	10883
10884	10884
10885	10885
10886	10886
10887	10887
10888	10888	SB2497 - 302 - LRB104 12224 JDS 22330 b
10889	10889
10890	10890
10891	10891	SB2497- 303 -LRB104 12224 JDS 22330 b SB2497 - 303 - LRB104 12224 JDS 22330 b
10892	10892	SB2497 - 303 - LRB104 12224 JDS 22330 b
10893	10893	1 asset. Factors that the Commission shall consider in
10894	10894	2 determining the portion of costs that shall be deferred as
10895	10895	3 a regulatory asset include, but are not limited to: (i)
10896	10896	4 whether and the extent to which a cost effectively
10897	10897	5 deferred or avoided other distribution system operating
10898	10898	6 costs or capital expenditures; (ii) the extent to which a
10899	10899	7 cost provides environmental benefits; (iii) the extent to
10900	10900	8 which a cost improves system reliability or resilience;
10901	10901	9 (iv) the electric utility's distribution system plan
10902	10902	10 developed pursuant to Section 16-105.17 of this Act; (v)
10903	10903	11 the extent to which a cost advances equity principles; and
10904	10904	12 (vi) such other factors as the Commission deems
10905	10905	13 appropriate. The remainder of costs shall be deemed an
10906	10906	14 operating expense and shall be recoverable if found
10907	10907	15 prudent and reasonable by the Commission.
10908	10908	16 The total costs deferred as a regulatory asset shall
10909	10909	17 be amortized over a 15-year period. The unamortized
10910	10910	18 balance shall be recognized as of December 31 for a given
10911	10911	19 year. The utility shall also earn a return on the total of
10912	10912	20 the unamortized balance of the regulatory assets, less any
10913	10913	21 deferred taxes related to the unamortized balance, at an
10914	10914	22 annual rate equal to the utility's weighted average cost
10915	10915	23 of capital that includes, based on a year-end capital
10916	10916	24 structure, the utility's actual cost of debt for the
10917	10917	25 applicable calendar year and a cost of equity, which shall
10918	10918	26 be calculated as the sum of: (I) the average for the
10919	10919
10920	10920
10921	10921
10922	10922
10923	10923
10924	10924	SB2497 - 303 - LRB104 12224 JDS 22330 b
10925	10925
10926	10926
10927	10927	SB2497- 304 -LRB104 12224 JDS 22330 b SB2497 - 304 - LRB104 12224 JDS 22330 b
10928	10928	SB2497 - 304 - LRB104 12224 JDS 22330 b
10929	10929	1 applicable calendar year of the monthly average yields of
10930	10930	2 30-year U.S. Treasury bonds published by the Board of
10931	10931	3 Governors of the Federal Reserve System in its weekly H.15
10932	10932	4 Statistical Release or successor publication; and (II) 580
10933	10933	5 basis points, including a revenue conversion factor
10934	10934	6 calculated to recover or refund all additional income
10935	10935	7 taxes that may be payable or receivable as a result of that
10936	10936	8 return.
10937	10937	9 (2) The utility may recover all of the costs through
10938	10938	10 an automatic adjustment clause tariff, on a volumetric
10939	10939	11 basis. The utility may file its proposed cost-recovery
10940	10940	12 tariff together with the tariff it files under subsection
10941	10941	13 (e) of this Section or at a later time. The proposed tariff
10942	10942	14 shall provide for an annual reconciliation, less any
10943	10943	15 deferred taxes related to the reconciliation, with
10944	10944	16 interest at an annual rate of return equal to the
10945	10945	17 utility's weighted average cost of capital as calculated
10946	10946	18 under paragraph (1) of this subsection (i), including a
10947	10947	19 revenue conversion factor calculated to recover or refund
10948	10948	20 all additional income taxes that may be payable or
10949	10949	21 receivable as a result of that return, of the revenue
10950	10950	22 requirement reflected in rates for each calendar year,
10951	10951	23 beginning with the calendar year in which the utility
10952	10952	24 files its automatic adjustment clause tariff under this
10953	10953	25 subsection (i), with what the revenue requirement would
10954	10954	26 have been had the actual cost information for the
10955	10955
10956	10956
10957	10957
10958	10958
10959	10959
10960	10960	SB2497 - 304 - LRB104 12224 JDS 22330 b
10961	10961
10962	10962
10963	10963	SB2497- 305 -LRB104 12224 JDS 22330 b SB2497 - 305 - LRB104 12224 JDS 22330 b
10964	10964	SB2497 - 305 - LRB104 12224 JDS 22330 b
10965	10965	1 applicable calendar year been available at the filing
10966	10966	2 date. The Commission shall review the proposed tariff and
10967	10967	3 may make changes to the tariff that are consistent with
10968	10968	4 this Section and with the Commission's authority under
10969	10969	5 Article IX of this Act, subject to notice and hearing.
10970	10970	6 Following notice and hearing, the Commission shall issue
10971	10971	7 an order approving, or approving with modification, such
10972	10972	8 tariff no later than 240 days after the utility files its
10973	10973	9 tariff.
10974	10974	10 (j) No later than 90 days after the Commission enters an
10975	10975	11 order, or order on rehearing, whichever is later, approving an
10976	10976	12 electric utility's proposed tariff under this Section, the
10977	10977	13 electric utility shall provide notice of the availability of
10978	10978	14 rebates under this Section.
10979	10979	15 (Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
10980	10980	16 (220 ILCS 5/16-107.8 new)
10981	10981	17 Sec. 16-107.8. Demand response virtual power plant
10982	10982	18 program.
10983	10983	19 (a) In this Section:
10984	10984	20 "Aggregator" means a party, other than the electric
10985	10985	21 utility or its affiliate, that (i) represents and aggregates
10986	10986	22 the load of participating customers who collectively have the
10987	10987	23 ability to curtail 100 kilowatts or more through demand
10988	10988	24 response technologies and (ii) is responsible for performance
10989	10989	25 of the aggregation in the program.
10990	10990
10991	10991
10992	10992
10993	10993
10994	10994
10995	10995	SB2497 - 305 - LRB104 12224 JDS 22330 b
10996	10996
10997	10997
10998	10998	SB2497- 306 -LRB104 12224 JDS 22330 b SB2497 - 306 - LRB104 12224 JDS 22330 b
10999	10999	SB2497 - 306 - LRB104 12224 JDS 22330 b
11000	11000	1 "Demand response technologies" means applications or
11001	11001	2 solutions, not including electricity generators, that can be
11002	11002	3 controlled to respond to pricing, or provide services,
11003	11003	4 including decrease peak electricity demand or shift demand
11004	11004	5 from peak to off-peak periods. Demand response technologies
11005	11005	6 may include, but are not limited to, connected devices such as
11006	11006	7 behind-the-meter energy storage systems, smart thermostats,
11007	11007	8 air conditioning units, electric vehicle batteries, and
11008	11008	9 electric vehicle supply equipment.
11009	11009	10 "Distributed energy resources management system" or
11010	11010	11 "DERMS" means a platform that may be used by distribution
11011	11011	12 system operators or utilities to integrate grid resources,
11012	11012	13 such as distributed energy resources, into system operations.
11013	11013	14 "Energy storage system" has the meaning set forth in
11014	11014	15 subsection (a) of Section 16-107.6.
11015	11015	16 "Event" means a time period defined consistent with the
11016	11016	17 requirements of this Section by the applicable electric
11017	11017	18 utility where deployment of demand response technologies is
11018	11018	19 measured and compensated under this Section.
11019	11019	20 "Export" means the discharge of energy from an energy
11020	11020	21 storage system to the distribution grid in response to
11021	11021	22 pricing, or to provide services, including decreasing peak
11022	11022	23 electricity demand or shifting demand from peak to off-peak
11023	11023	24 periods.
11024	11024	25 "Participating customer" means a retail customer as
11025	11025	26 defined in Section 16-102 with one or more demand response
11026	11026
11027	11027
11028	11028
11029	11029
11030	11030
11031	11031	SB2497 - 306 - LRB104 12224 JDS 22330 b
11032	11032
11033	11033
11034	11034	SB2497- 307 -LRB104 12224 JDS 22330 b SB2497 - 307 - LRB104 12224 JDS 22330 b
11035	11035	SB2497 - 307 - LRB104 12224 JDS 22330 b
11036	11036	1 technologies.
11037	11037	2 (b) The General Assembly finds that when demand response
11038	11038	3 technologies commit to deployment at times of stress on the
11039	11039	4 grid and in wholesale energy markets, the actual deployment
11040	11040	5 benefits all customers of the utility with enhanced grid
11041	11041	6 reliability and protection from retail and wholesale price
11042	11042	7 increases and that those socialized goods should be encouraged
11043	11043	8 and compensated.
11044	11044	9 (c) Within 60 days of the effective date of this
11045	11045	10 amendatory Act of the 104th General Assembly, each electric
11046	11046	11 utility serving more than 300,000 customers as of January 1,
11047	11047	12 2023 shall propose one or more tariffs applicable to demand
11048	11048	13 response technologies. The tariffs shall be consistent with
11049	11049	14 the following:
11050	11050	15 (1) Each request by the utility for an aggregator or
11051	11051	16 participating customer to deploy demand response
11052	11052	17 technologies participating in the program as identified in
11053	11053	18 advance by the aggregator or participating customer shall
11054	11054	19 be an event. Each utility shall rely on the demand
11055	11055	20 response technologies addressed within a tariff a minimum
11056	11056	21 number of events specified in the tariff.
11057	11057	22 (2) In exchange for an aggregator, or a participating
11058	11058	23 customer not using an aggregator, facilitating curtailment
11059	11059	24 through demand response technologies, the utility shall
11060	11060	25 after demonstrated performance by the aggregator or
11061	11061	26 participating customer, compensate the aggregator or
11062	11062
11063	11063
11064	11064
11065	11065
11066	11066
11067	11067	SB2497 - 307 - LRB104 12224 JDS 22330 b
11068	11068
11069	11069
11070	11070	SB2497- 308 -LRB104 12224 JDS 22330 b SB2497 - 308 - LRB104 12224 JDS 22330 b
11071	11071	SB2497 - 308 - LRB104 12224 JDS 22330 b
11072	11072	1 participating customer in a manner to be determined by the
11073	11073	2 Commission. The Commission may consider separate
11074	11074	3 compensation for response to events called on less than 24
11075	11075	4 hours notice and compensation for response to events
11076	11076	5 called on 24 hours or more notice. In determining the
11077	11077	6 value of the performance payment, the Commission shall at
11078	11078	7 minimum consider the benefits to the utility and
11079	11079	8 ratepayers of peak remediation, reduced capacity and
11080	11080	9 transmission allocations to the applicable regional
11081	11081	10 transmission organization zone, and a reasonable
11082	11082	11 estimation of the value of reduced transmission and
11083	11083	12 distribution investment and other grid services. The value
11084	11084	13 shall be set to encourage robust participation. At least
11085	11085	14 30 days prior to proposing any tariff relating to demand
11086	11086	15 response technologies, utilities shall jointly conduct at
11087	11087	16 least one meeting with interested potential aggregators
11088	11088	17 and participating customers to identify types of demand
11089	11089	18 response technologies and compensation suitable for
11090	11090	19 inclusion in the tariff.
11091	11091	20 (3) An aggregator, or participating customer applying
11092	11092	21 individually, must represent that it has identified for
11093	11093	22 participation demand response technologies with an
11094	11094	23 aggregate curtailment capacity of at least 100 kilowatts
11095	11095	24 or any amount greater than that amount. Nothing in the
11096	11096	25 tariffs shall require a particular participating customer,
11097	11097	26 whether using an aggregator or not, to deploy at any
11098	11098
11099	11099
11100	11100
11101	11101
11102	11102
11103	11103	SB2497 - 308 - LRB104 12224 JDS 22330 b
11104	11104
11105	11105
11106	11106	SB2497- 309 -LRB104 12224 JDS 22330 b SB2497 - 309 - LRB104 12224 JDS 22330 b
11107	11107	SB2497 - 309 - LRB104 12224 JDS 22330 b
11108	11108	1 particular time.
11109	11109	2 (4) The utility shall not send or receive signals
11110	11110	3 directly to or from any participating customer represented
11111	11111	4 by an aggregator for an event under the demand response
11112	11112	5 virtual power plant program described in this Section.
11113	11113	6 (5) The aggregator may have capabilities to receive
11114	11114	7 dispatch signals from utilities or utility-contracted
11115	11115	8 DERMS providers through communication protocols, such as
11116	11116	9 IEEE 2030.5 or OpenADR, or through such other protocol as
11117	11117	10 the Commission may approve. To facilitate adoption and
11118	11118	11 participation, the utility must also allow and enable
11119	11119	12 participating customers to expeditiously share their
11120	11120	13 customer information with aggregators and provide dispatch
11121	11121	14 signals in the form of an email or mutually agreeable
11122	11122	15 implementation.
11123	11123	16 (6) A participating customer with multiple demand
11124	11124	17 response technologies may enroll the technologies either
11125	11125	18 directly without an aggregator or through one or more
11126	11126	19 aggregators in applicable programs under the tariffs
11127	11127	20 approved under this section, so long as no particular
11128	11128	21 technology is accounted for more than once. An aggregator,
11129	11129	22 or a participating customer not using an aggregator, may
11130	11130	23 collect and rely on data created by the demand response
11131	11131	24 technologies for the purpose of demonstrating performance
11132	11132	25 in response to an event.
11133	11133	26 (7) A participating customer may enroll in the demand
11134	11134
11135	11135
11136	11136
11137	11137
11138	11138
11139	11139	SB2497 - 309 - LRB104 12224 JDS 22330 b
11140	11140
11141	11141
11142	11142	SB2497- 310 -LRB104 12224 JDS 22330 b SB2497 - 310 - LRB104 12224 JDS 22330 b
11143	11143	SB2497 - 310 - LRB104 12224 JDS 22330 b
11144	11144	1 response virtual power plant program directly if eligible
11145	11145	2 or through an aggregator for one or more years and the
11146	11146	3 electric utility shall not set a minimum or maximum length
11147	11147	4 of participation for demand response technologies. The
11148	11148	5 utility shall not limit the number of participating
11149	11149	6 customers, nor shall any customer be prohibited from
11150	11150	7 participating due to its rate class.
11151	11151	8 (8) The electric utility may include reasonable
11152	11152	9 requirements for participation consistent with this
11153	11153	10 subsection except that the utility may not require
11154	11154	11 collateral from a participating customer or an aggregator
11155	11155	12 and neither the utility nor entities with which the
11156	11156	13 utility shares a common parent may be an aggregator. The
11157	11157	14 electric utility shall not penalize a participating
11158	11158	15 customer or aggregator for a participating customer
11159	11159	16 exporting during an event and the electric utility shall
11160	11160	17 not require preapproval for customer export during an
11161	11161	18 event.
11162	11162	19 (9) The utility shall recover the costs of the demand
11163	11163	20 response virtual power plant program through delivery
11164	11164	21 rates, including delivery rates authorized by the
11165	11165	22 multi-year rate plan.
11166	11166	23 (d) The Commission shall approve or approve with
11167	11167	24 modifications the tariffs filed by each utility pursuant to
11168	11168	25 subsection (c) within 240 days of filing by the utility. At any
11169	11169	26 time, the utility may propose revisions to the tariff required
11170	11170
11171	11171
11172	11172
11173	11173
11174	11174
11175	11175	SB2497 - 310 - LRB104 12224 JDS 22330 b
11176	11176
11177	11177
11178	11178	SB2497- 311 -LRB104 12224 JDS 22330 b SB2497 - 311 - LRB104 12224 JDS 22330 b
11179	11179	SB2497 - 311 - LRB104 12224 JDS 22330 b
11180	11180	1 under this Section and the Commission may approve such
11181	11181	2 revisions if, in addition to requirements under Article IX of
11182	11182	3 this Act, such revisions are consistent with the requirements
11183	11183	4 of this Section.
11184	11184	5 (e) Not more than 6 months after 2 full delivery years of
11185	11185	6 operation of the tariffs authorized in this Section, the
11186	11186	7 Commission shall issue a report to the General Assembly
11187	11187	8 assessing the value and efficacy of the demand response
11188	11188	9 virtual power plant program, including proposals for
11189	11189	10 expansions or modifications.
11190	11190	11 (f) Nothing in the demand response virtual power plant
11191	11191	12 program shall either prevent the participating customer from
11192	11192	13 participating, directly or through a third-party aggregator,
11193	11193	14 in any other program, including any program required or
11194	11194	15 authorized by Section 16-107.6 of this Act.
11195	11195	16 (g) The Commission may consider approving additional
11196	11196	17 compensation to aggregators to the extent that the
11197	11197	18 aggregators' participating customers or participating
11198	11198	19 customers are located in equity investment eligible
11199	11199	20 communities, as that term is defined in Section 1-10 of the
11200	11200	21 Illinois Power Agency Act.
11201	11201	22 (h) The tariffs approved by the Commission shall not
11202	11202	23 reflect any additional charges, fees, or insurance
11203	11203	24 requirements imposed on those owning or operating demand
11204	11204	25 response technologies beyond those imposed on similarly
11205	11205	26 situated customers that do not own or operate such.
11206	11206
11207	11207
11208	11208
11209	11209
11210	11210
11211	11211	SB2497 - 311 - LRB104 12224 JDS 22330 b
11212	11212
11213	11213
11214	11214	SB2497- 312 -LRB104 12224 JDS 22330 b SB2497 - 312 - LRB104 12224 JDS 22330 b
11215	11215	SB2497 - 312 - LRB104 12224 JDS 22330 b
11216	11216	1 (i) If a utility issuing tariffs under this Section
11217	11217	2 conducts measurement and verification prescribed by the
11218	11218	3 Commission, notwithstanding anything to the contrary all
11219	11219	4 curtailment associated with demand response technologies
11220	11220	5 taking service under such tariffs shall be counted towards
11221	11221	6 such utility's peak load reduction performance metric
11222	11222	7 authorized by item (ii) of subparagraph (A) of paragraph (2)
11223	11223	8 of subsection (e) of Section 16-108.18 of this Act and such
11224	11224	9 utility's demand response obligations under Section 8-103B of
11225	11225	10 this Act. The Commission shall not require demand response
11226	11226	11 technologies to participate in any capacity or demand response
11227	11227	12 markets or programs as a condition of the load attributable to
11228	11228	13 participating systems to count toward the utility's peak load
11229	11229	14 reduction performance metric or demand response obligations.
11230	11230	15 (220 ILCS 5/16-107.9 new)
11231	11231	16 Sec. 16-107.9. Virtual power plant program.
11232	11232	17 (a) In this Section:
11233	11233	18 "Aggregator" means a party, other than the electric
11234	11234	19 utility or its affiliate, that (i) represents and aggregates
11235	11235	20 the load of participating customers who collectively have the
11236	11236	21 ability to deploy 100 kilowatts or more of deployment of
11237	11237	22 eligible devices and (ii) is responsible for performance of
11238	11238	23 the aggregation in the program.
11239	11239	24 "Distributed energy resources management system" or
11240	11240	25 "DERMS" means a platform that may be used by distribution
11241	11241
11242	11242
11243	11243
11244	11244
11245	11245
11246	11246	SB2497 - 312 - LRB104 12224 JDS 22330 b
11247	11247
11248	11248
11249	11249	SB2497- 313 -LRB104 12224 JDS 22330 b SB2497 - 313 - LRB104 12224 JDS 22330 b
11250	11250	SB2497 - 313 - LRB104 12224 JDS 22330 b
11251	11251	1 system operators or utilities to integrate grid resources such
11252	11252	2 as distributed energy resources into system operations.
11253	11253	3 "Distributed renewable energy generation device" has the
11254	11254	4 meaning set forth in Section 1-10 of the Illinois Power Agency
11255	11255	5 Act.
11256	11256	6 "Eligible devices" means a distributed renewable energy
11257	11257	7 device paired with one or more energy storage systems.
11258	11258	8 "Energy storage system" has the meaning set forth in
11259	11259	9 subsection (a) of Section 16-107.6.
11260	11260	10 "Participating customer" means a retail customer as
11261	11261	11 defined in Section 16-102 with one or more eligible devices,
11262	11262	12 including a community renewable generation project.
11263	11263	13 "Smart inverter" has the meaning set forth in subsection
11264	11264	14 (a) of Section 16-107.6.
11265	11265	15 (b) The General Assembly finds that when eligible devices
11266	11266	16 commit to deployment at times of stress on the grid and in
11267	11267	17 wholesale energy markets, the actual deployment benefits all
11268	11268	18 customers of the utility with enhanced reliability and
11269	11269	19 protection from wholesale price increases and that those
11270	11270	20 socialized goods should be encouraged and compensated.
11271	11271	21 (c) Within 60 days after the effective date of this
11272	11272	22 amendatory Act of the 104th General Assembly, each electric
11273	11273	23 utility serving more than 300,000 customers as of January 1,
11274	11274	24 2023, shall propose an initial tariff. The initial tariff
11275	11275	25 shall be consistent with the following:
11276	11276	26 (1) Each request by the utility for an aggregator or
11277	11277
11278	11278
11279	11279
11280	11280
11281	11281
11282	11282	SB2497 - 313 - LRB104 12224 JDS 22330 b
11283	11283
11284	11284
11285	11285	SB2497- 314 -LRB104 12224 JDS 22330 b SB2497 - 314 - LRB104 12224 JDS 22330 b
11286	11286	SB2497 - 314 - LRB104 12224 JDS 22330 b
11287	11287	1 participating customer to deploy eligible devices
11288	11288	2 participating in the program as identified in advance by
11289	11289	3 the aggregator or participating customer shall be an
11290	11290	4 event. The utility shall provide at least 24 hours of
11291	11291	5 notice for an event compensated under paragraph (2) of
11292	11292	6 this subsection (c), however nothing prohibits the utility
11293	11293	7 from proposing distinct compensation for responses to
11294	11294	8 events called on less than 24 hours advance notice.
11295	11295	9 (2) In exchange for an aggregator facilitating the
11296	11296	10 dispatch of eligible systems during hours identified by
11297	11297	11 the utility under this tariff or a participating customer
11298	11298	12 not using an aggregator dispatching, with each time period
11299	11299	13 being an event, not to exceed 60 hours in a calendar year
11300	11300	14 and not to exceed 2 consecutive hours, the utility shall,
11301	11301	15 at the end of each delivery year during which an
11302	11302	16 aggregator participates, compensate the aggregator in an
11303	11303	17 amount per kilowatt multiplied by the average number of
11304	11304	18 kilowatts discharged during events in a delivery year by
11305	11305	19 those eligible systems enrolled with the aggregator, with
11306	11306	20 the amount per kilowatt to be determined by the
11307	11307	21 Commission. Discharge shall be measured by the total power
11308	11308	22 and energy measured by the inverter of the eligible device
11309	11309	23 and shall not distinguish between power and energy from
11310	11310	24 the distributed renewable energy generation device or the
11311	11311	25 energy storage system. In determining the value of the
11312	11312	26 performance payment, the Commission shall, at minimum,
11313	11313
11314	11314
11315	11315
11316	11316
11317	11317
11318	11318	SB2497 - 314 - LRB104 12224 JDS 22330 b
11319	11319
11320	11320
11321	11321	SB2497- 315 -LRB104 12224 JDS 22330 b SB2497 - 315 - LRB104 12224 JDS 22330 b
11322	11322	SB2497 - 315 - LRB104 12224 JDS 22330 b
11323	11323	1 consider the benefits to the utility and ratepayers of
11324	11324	2 peak remediation, reduced capacity and transmission
11325	11325	3 allocations to the applicable regional transmission
11326	11326	4 organization zone, and a reasonable estimation of the
11327	11327	5 value of reduced transmission investment and other grid
11328	11328	6 services not compensated by tariffs authorized under
11329	11329	7 Section 16-107.6. The value shall be set to encourage
11330	11330	8 robust participation and shall be for a term of no less
11331	11331	9 than 5 years. At no time shall the compensation per
11332	11332	10 average kilowatt of demand reduction delivered be less
11333	11333	11 than $250.
11334	11334	12 (3) An aggregator or participating customer applying
11335	11335	13 individually must represent that it has identified for
11336	11336	14 participation one or more eligible devices with an
11337	11337	15 aggregate export capacity of at least 100 kilowatts or any
11338	11338	16 greater amount. Nothing in the tariff shall require a
11339	11339	17 particular participating customer using an aggregator
11340	11340	18 deploy at any particular time.
11341	11341	19 (4) The utility shall not send or receive signals
11342	11342	20 directly to or from any participating customer represented
11343	11343	21 by an aggregator for an event under the virtual power
11344	11344	22 plant program described in this Section.
11345	11345	23 (5) The aggregator may have capabilities to receive
11346	11346	24 dispatch signals from utilities or utility-contracted
11347	11347	25 DERMS providers through communication protocols, such as
11348	11348	26 IEEE 2030.5 or OpenADR, or through other protocol as the
11349	11349
11350	11350
11351	11351
11352	11352
11353	11353
11354	11354	SB2497 - 315 - LRB104 12224 JDS 22330 b
11355	11355
11356	11356
11357	11357	SB2497- 316 -LRB104 12224 JDS 22330 b SB2497 - 316 - LRB104 12224 JDS 22330 b
11358	11358	SB2497 - 316 - LRB104 12224 JDS 22330 b
11359	11359	1 Commission may approve. To facilitate adoption and
11360	11360	2 participation, the utility must also provide dispatch
11361	11361	3 signals in the form of an email or mutually agreeable
11362	11362	4 implementation.
11363	11363	5 (6) Notwithstanding anything to the contrary, nothing
11364	11364	6 prohibits a participating customer from simultaneously
11365	11365	7 being a participating customer and taking service under
11366	11366	8 tariffs authorized by Section 16-107.5 or 16-107.6.
11367	11367	9 (7) A participating customer may enroll in the virtual
11368	11368	10 power plant program directly if eligible or through an
11369	11369	11 aggregator for one or more years, and the electric utility
11370	11370	12 shall not set a minimum or maximum length of participation
11371	11371	13 for an eligible system represented by an aggregator. The
11372	11372	14 utility shall not limit the number of participating
11373	11373	15 customers nor shall any customer be prohibited from
11374	11374	16 participating due to its rate class.
11375	11375	17 (8) The electric utility may include reasonable
11376	11376	18 requirements for participation consistent with this
11377	11377	19 subsection except that the utility may not require
11378	11378	20 collateral from a participating customer or an aggregator
11379	11379	21 and neither the utility nor entities with which the
11380	11380	22 utility shares a common parent may be an aggregator. In no
11381	11381	23 event may the electric utility call an event with less
11382	11382	24 than 24 hours' prior notice and in no event may one or more
11383	11383	25 events on a single calendar day total more than 2 hours.
11384	11384	26 The electric utility shall not penalize a participating
11385	11385
11386	11386
11387	11387
11388	11388
11389	11389
11390	11390	SB2497 - 316 - LRB104 12224 JDS 22330 b
11391	11391
11392	11392
11393	11393	SB2497- 317 -LRB104 12224 JDS 22330 b SB2497 - 317 - LRB104 12224 JDS 22330 b
11394	11394	SB2497 - 317 - LRB104 12224 JDS 22330 b
11395	11395	1 customer or aggregator for a participating customer
11396	11396	2 exporting during an event, and the electric utility shall
11397	11397	3 not require preapproval for customer export during an
11398	11398	4 event.
11399	11399	5 (9) The utility shall recover the costs of the virtual
11400	11400	6 power plant program through delivery rates, including
11401	11401	7 delivery rates authorized by the Multi-Year Rate Plan.
11402	11402	8 (d) The Commission shall approve or approve with
11403	11403	9 modifications the tariff filed by each utility pursuant to
11404	11404	10 subsection (c) within 240 days after its filing by the
11405	11405	11 utility. At any time, the utility may propose revisions to the
11406	11406	12 initial tariff or any revisions to those revisions, and the
11407	11407	13 Commission shall approve such revisions if, in addition to
11408	11408	14 requirements under Article IX, such revisions are consistent
11409	11409	15 with the requirements of this Section.
11410	11410	16 (e) Not more than 6 months after 2 full delivery years of
11411	11411	17 operation of the tariffs authorized in this Section, the
11412	11412	18 Commission shall issue a report to the General Assembly
11413	11413	19 assessing the value and efficacy of the virtual power plant
11414	11414	20 program, including proposals for expansions or modifications.
11415	11415	21 (f) Nothing in the virtual power plant program shall
11416	11416	22 either prevent the participating customer from participating,
11417	11417	23 directly or through a third-party aggregator, in any other
11418	11418	24 program, including any program required or authorized by
11419	11419	25 Section 16-107.5 or 16-107.6, or impair the entitlement of any
11420	11420	26 participating customer to benefits authorized to the
11421	11421
11422	11422
11423	11423
11424	11424
11425	11425
11426	11426	SB2497 - 317 - LRB104 12224 JDS 22330 b
11427	11427
11428	11428
11429	11429	SB2497- 318 -LRB104 12224 JDS 22330 b SB2497 - 318 - LRB104 12224 JDS 22330 b
11430	11430	SB2497 - 318 - LRB104 12224 JDS 22330 b
11431	11431	1 participating customer by Section 16-107.5.
11432	11432	2 (g) The Commission may consider providing compensation to
11433	11433	3 aggregators or participating customers not using an aggregator
11434	11434	4 to the extent that the aggregators' participating customers or
11435	11435	5 participating customers not using an aggregator are located in
11436	11436	6 equity investment eligible communities, as that term is
11437	11437	7 defined in Section 1-10 of the Illinois Power Agency Act.
11438	11438	8 (h) The tariffs approved by the Commission shall not
11439	11439	9 reflect any additional charges, fees, or insurance
11440	11440	10 requirements imposed on those owning or operating distributed
11441	11441	11 renewable energy generation devices, distributed energy
11442	11442	12 resources, or energy storage systems beyond those imposed on
11443	11443	13 similarly situated customers that do not own or operate these
11444	11444	14 resources.
11445	11445	15 (i) If a utility issuing a tariff under this Section
11446	11446	16 conducts measurement and verification prescribed by the
11447	11447	17 Commission, notwithstanding anything to the contrary all
11448	11448	18 discharge from distributed renewable generation devices taking
11449	11449	19 service under the tariff shall be counted towards the
11450	11450	20 utility's peak load reduction performance metric authorized by
11451	11451	21 item (ii) of subparagraph (A) of paragraph (2) of subsection
11452	11452	22 (e) of Section 16-108.18. The Commission shall not require an
11453	11453	23 eligible system to participate in any capacity or demand
11454	11454	24 response markets or programs as a condition of the load
11455	11455	25 reduction attributable to participating systems to count
11456	11456	26 toward the utility's peak load reduction performance metric.
11457	11457
11458	11458
11459	11459
11460	11460
11461	11461
11462	11462	SB2497 - 318 - LRB104 12224 JDS 22330 b
11463	11463
11464	11464
11465	11465	SB2497- 319 -LRB104 12224 JDS 22330 b SB2497 - 319 - LRB104 12224 JDS 22330 b
11466	11466	SB2497 - 319 - LRB104 12224 JDS 22330 b
11467	11467	1 (220 ILCS 5/16-107.10 new)
11468	11468	2 Sec. 16-107.10. Peak remediation program.
11469	11469	3 (a) In this Section:
11470	11470	4 "Community renewable generation project" has the meaning
11471	11471	5 set forth in Section 1-10 of the Illinois Power Agency Act.
11472	11472	6 "Defined discharge hours" means the defined hours in the
11473	11473	7 initial tariff or subsequent tariffs that an eligible device
11474	11474	8 is eligible to receive a peak discharge payment per
11475	11475	9 kilowatt-hour of energy discharged.
11476	11476	10 "Eligible device" means a community renewable generation
11477	11477	11 project paired with one or more energy storage systems.
11478	11478	12 "Energy storage system" has the meaning set forth in
11479	11479	13 subsection (a) of Section 16-107.6.
11480	11480	14 "Nameplate capacity" has the meaning set forth in Section
11481	11481	15 1-10 of the Illinois Power Agency Act.
11482	11482	16 "Peak discharge payment" means a price per kilowatt hour
11483	11483	17 paid for energy discharged from an eligible device during the
11484	11484	18 defined discharge hours.
11485	11485	19 "Threshold date" has the meaning set forth in subsection
11486	11486	20 (a) of Section 16-107.6.
11487	11487	21 (b) The General Assembly finds that the electric grid sees
11488	11488	22 high demand for electricity but fewer renewable resources
11489	11489	23 available to meet that high demand. The General Assembly
11490	11490	24 further finds that all ratepayers benefit from deployment of
11491	11491	25 energy storage in a way that alleviates stress on the grid and
11492	11492
11493	11493
11494	11494
11495	11495
11496	11496
11497	11497	SB2497 - 319 - LRB104 12224 JDS 22330 b
11498	11498
11499	11499
11500	11500	SB2497- 320 -LRB104 12224 JDS 22330 b SB2497 - 320 - LRB104 12224 JDS 22330 b
11501	11501	SB2497 - 320 - LRB104 12224 JDS 22330 b
11502	11502	1 reduces the costs for ratepayers frequently allocated during
11503	11503	2 those peak hours.
11504	11504	3 (c) Within 90 days after the effective date of this
11505	11505	4 amendatory Act of the 104th General Assembly, each electric
11506	11506	5 utility serving more than 300,000 retail customers as of
11507	11507	6 January 1, 2023 shall propose an initial tariff. The initial
11508	11508	7 tariff shall be consistent with the following:
11509	11509	8 (1) The utility shall compensate eligible devices with
11510	11510	9 a nameplate capacity of at least 100 kilowatts but no more
11511	11511	10 than 5,000 kilowatts for discharging into the grid during
11512	11512	11 defined discharge hours.
11513	11513	12 (2) The defined discharge hours shall be the hours of
11514	11514	13 4 p.m. through 8 p.m. on days during the months of June,
11515	11515	14 July, August, and September.
11516	11516	15 (3) In exchange for generating and providing through
11517	11517	16 its meter to the utility's distribution system at least 50
11518	11518	17 kilowatts during defined discharge hours, the utility
11519	11519	18 shall compensate the owner or operator of the eligible
11520	11520	19 device or a third party designated by the owner or
11521	11521	20 operator of the eligible device a peak discharge payment
11522	11522	21 in an amount to be determined by the Commission in
11523	11523	22 proportion to the average discharge during the hours
11524	11524	23 according to a pre-defined per kilowatt average discharge
11525	11525	24 payment. Discharge shall be measured by the total power
11526	11526	25 and energy measured by the inverter of the eligible device
11527	11527	26 and shall not distinguish between power and energy from
11528	11528
11529	11529
11530	11530
11531	11531
11532	11532
11533	11533	SB2497 - 320 - LRB104 12224 JDS 22330 b
11534	11534
11535	11535
11536	11536	SB2497- 321 -LRB104 12224 JDS 22330 b SB2497 - 321 - LRB104 12224 JDS 22330 b
11537	11537	SB2497 - 321 - LRB104 12224 JDS 22330 b
11538	11538	1 the distributed renewable energy generation device or the
11539	11539	2 energy storage system.
11540	11540	3 (4) In determining the value of the peak discharge
11541	11541	4 payment for each participating utility, the Commission
11542	11542	5 shall, at minimum, consider the benefits to the utility
11543	11543	6 and ratepayers of peak remediation, reduced capacity, and
11544	11544	7 transmission allocations to the applicable regional
11545	11545	8 transmission organization zone, and a reasonable
11546	11546	9 estimation of the value of reduced transmission investment
11547	11547	10 and other grid services not compensated by tariffs
11548	11548	11 authorized under Section 16-107.6. The value shall be set
11549	11549	12 to encourage robust participation and shall be for a term
11550	11550	13 of no less than 15 years. The utility shall not limit the
11551	11551	14 number or capacity of participating devices.
11552	11552	15 (5) The electric utility may include reasonable
11553	11553	16 requirements for participation consistent with this
11554	11554	17 subsection except that the utility may not require
11555	11555	18 collateral from the owner or operator of a participating
11556	11556	19 eligible device.
11557	11557	20 (6) Nothing in the tariff or this Section shall
11558	11558	21 separately or independently authorize the utility to
11559	11559	22 control deployment of the storage device.
11560	11560	23 (7) The utility shall recover the costs incurred under
11561	11561	24 the tariff through delivery rates, including delivery
11562	11562	25 rates authorized by the Multi-Year Rate Plan.
11563	11563	26 (d) The Commission shall approve or approve with
11564	11564
11565	11565
11566	11566
11567	11567
11568	11568
11569	11569	SB2497 - 321 - LRB104 12224 JDS 22330 b
11570	11570
11571	11571
11572	11572	SB2497- 322 -LRB104 12224 JDS 22330 b SB2497 - 322 - LRB104 12224 JDS 22330 b
11573	11573	SB2497 - 322 - LRB104 12224 JDS 22330 b
11574	11574	1 modifications the initial tariff filed by each utility
11575	11575	2 pursuant to subsection (c) within 240 days after filing by the
11576	11576	3 utility. At any time, the utility may propose revisions to the
11577	11577	4 initial tariff or any revisions to those revisions, and the
11578	11578	5 Commission shall approve such revisions if, in addition to
11579	11579	6 requirements under Article IX, such revisions are consistent
11580	11580	7 with the requirements of this Section.
11581	11581	8 (e) After the threshold date, the utility shall file an
11582	11582	9 annual petition to update the initial tariff for eligible
11583	11583	10 systems that begin to take service under the tariff during the
11584	11584	11 annual period. The utility shall be allowed to update the peak
11585	11585	12 discharge payment and defined discharge hours, which shall not
11586	11586	13 begin earlier than 4 p.m., but must otherwise meet all the
11587	11587	14 requirements under subsection (c). The Commission shall
11588	11588	15 approve the petition to update the initial tariff within 90
11589	11589	16 days after the petition is filed.
11590	11590	17 (f) Nothing in this Section, including any rule,
11591	11591	18 regulation, or tariff authorized by this Section, shall
11592	11592	19 prevent the eligible device or any component of the eligible
11593	11593	20 device from participating in any program required or
11594	11594	21 authorized by Section 16-107.6, nor shall it impair the
11595	11595	22 entitlement of any participating customer to benefits
11596	11596	23 authorized by Section 16-107.5.
11597	11597	24 (g) The tariffs approved by the Commission shall not
11598	11598	25 reflect any additional charges, fees, or insurance
11599	11599	26 requirements imposed on those owning or operating distributed
11600	11600
11601	11601
11602	11602
11603	11603
11604	11604
11605	11605	SB2497 - 322 - LRB104 12224 JDS 22330 b
11606	11606
11607	11607
11608	11608	SB2497- 323 -LRB104 12224 JDS 22330 b SB2497 - 323 - LRB104 12224 JDS 22330 b
11609	11609	SB2497 - 323 - LRB104 12224 JDS 22330 b
11610	11610	1 renewable energy generation device, distributed energy
11611	11611	2 resources, or energy storage system beyond those imposed on
11612	11612	3 similarly situated customers that do not own or operate these
11613	11613	4 resources.
11614	11614	5 (h) If a utility issuing a tariff under this Section
11615	11615	6 conducts measurement and verification prescribed by the
11616	11616	7 Commission, notwithstanding anything to the contrary, all
11617	11617	8 discharge from community renewable generation projects taking
11618	11618	9 service under the tariff shall be counted toward the utility's
11619	11619	10 peak load reduction performance metric authorized by item (ii)
11620	11620	11 of subparagraph (A) of paragraph (2) of subsection (e) of
11621	11621	12 Section 16-108.18. The Commission shall not require an
11622	11622	13 eligible system to participate in any capacity or demand
11623	11623	14 response markets or programs as a condition of the load
11624	11624	15 reduction attributable to participating systems to count
11625	11625	16 toward the utility's peak load reduction performance metric.
11626	11626	17 (220 ILCS 5/16-107.11 new)
11627	11627	18 Sec. 16-107.11. Stand-alone energy storage distribution
11628	11628	19 deployment program.
11629	11629	20 (a) In this Section:
11630	11630	21 "Calendar quarter" means each of the following four
11631	11631	22 periods: (1) the months of January, February, and March; (2)
11632	11632	23 the months of April, May, and June; (3) the months of July,
11633	11633	24 August, and September; and (4) the months of October,
11634	11634	25 November, and December.
11635	11635
11636	11636
11637	11637
11638	11638
11639	11639
11640	11640	SB2497 - 323 - LRB104 12224 JDS 22330 b
11641	11641
11642	11642
11643	11643	SB2497- 324 -LRB104 12224 JDS 22330 b SB2497 - 324 - LRB104 12224 JDS 22330 b
11644	11644	SB2497 - 324 - LRB104 12224 JDS 22330 b
11645	11645	1 "Capacity amount" means the participating capacity of the
11646	11646	2 stand-alone energy storage system, as measured pursuant to the
11647	11647	3 terms of this Section, multiplied by (i) the applicable
11648	11648	4 capacity price (in $/kW-day) set by the regional transmission
11649	11649	5 organization, and (ii) the number of days during the
11650	11650	6 applicable billing cycle.
11651	11651	7 "Day" means the 24-hour period commencing immediately
11652	11652	8 following midnight central prevailing time and ending on the
11653	11653	9 following midnight central prevailing time.
11654	11654	10 "Eligible device" means a stand-alone energy storage
11655	11655	11 system.
11656	11656	12 "Export" means electric power and energy sent from the
11657	11657	13 stand-alone energy storage system, through the interconnecting
11658	11658	14 utility's meter, and to the interconnecting utility's
11659	11659	15 distribution system.
11660	11660	16 "Import" means electric power and energy taken from the
11661	11661	17 interconnecting utility's distribution system, through the
11662	11662	18 interconnecting utility's meter, and to the stand-alone energy
11663	11663	19 storage system, primarily for the purpose of charging the
11664	11664	20 stand-alone energy storage device.
11665	11665	21 "Meter" means the meter owned and operated by the
11666	11666	22 interconnecting utility (or third party as allowed by the
11667	11667	23 interconnecting utility's tariffs) measuring the power and
11668	11668	24 energy imported to and exported from the stand-alone energy
11669	11669	25 storage system.
11670	11670	26 "Nameplate capacity" means the aggregate inverter capacity
11671	11671
11672	11672
11673	11673
11674	11674
11675	11675
11676	11676	SB2497 - 324 - LRB104 12224 JDS 22330 b
11677	11677
11678	11678
11679	11679	SB2497- 325 -LRB104 12224 JDS 22330 b SB2497 - 325 - LRB104 12224 JDS 22330 b
11680	11680	SB2497 - 325 - LRB104 12224 JDS 22330 b
11681	11681	1 of a stand-alone energy storage system, measured in kilowatts
11682	11682	2 alternating current.
11683	11683	3 "Participating capacity" means the capacity of a
11684	11684	4 stand-alone energy storage system, measured in kilowatts
11685	11685	5 alternating current, that the system owner or operator
11686	11686	6 designates to participate in the stand alone energy storage
11687	11687	7 program. The participating capacity may be any value less than
11688	11688	8 or equal to the "nameplate capacity" of the stand-alone energy
11689	11689	9 storage system under the terms of this section. "Responding
11690	11690	10 event" means a scheduled event during which the stand-alone
11691	11691	11 energy storage system exports kilowatt-hours equal to at least
11692	11692	12 90% of the product of (1) the length of the scheduled event in
11693	11693	13 hours (expressed as a decimal to at least two places);
11694	11694	14 multiplied by (2) the participating capacity. Notwithstanding
11695	11695	15 the preceding, every kilowatt-hour generated during an
11696	11696	16 unscheduled event during the same day shall count toward
11697	11697	17 kilowatt-hours generated during a responding event.
11698	11698	18 "Paired" means an energy storage system is charged with
11699	11699	19 electricity generated by a distribution generation device or
11700	11700	20 community renewable generation project.
11701	11701	21 "Program" means the stand-alone energy storage
11702	11702	22 distribution deployment program.
11703	11703	23 "Scheduled event" means a time period communicated by the
11704	11704	24 interconnecting electric utility to the stand-alone storage
11705	11705	25 system under the terms of this Section not less than six hours
11706	11706	26 in advance, lasting not more than four total hours (whether or
11707	11707
11708	11708
11709	11709
11710	11710
11711	11711
11712	11712	SB2497 - 325 - LRB104 12224 JDS 22330 b
11713	11713
11714	11714
11715	11715	SB2497- 326 -LRB104 12224 JDS 22330 b SB2497 - 326 - LRB104 12224 JDS 22330 b
11716	11716	SB2497 - 326 - LRB104 12224 JDS 22330 b
11717	11717	1 not consecutive) on the same day. No less than [40] and more
11718	11718	2 than [50] scheduled events may occur per calendar quarter. No
11719	11719	3 scheduled event may end after 10 p.m. central prevailing time
11720	11720	4 or begin prior to 2 a.m. central prevailing time.
11721	11721	5 "Stand-alone energy storage system" means a device
11722	11722	6 interconnected to the distribution grid of an electric utility
11723	11723	7 that is not behind the meter of a retail customer and is not
11724	11724	8 DC-coupled with generation.
11725	11725	9 "Transmission amount" means the participating capacity of
11726	11726	10 the stand-alone energy storage system, as measured pursuant to
11727	11727	11 the terms of this Section, (i) the applicable transmission
11728	11728	12 price (in $/kW-day) set by the regional transmission
11729	11729	13 organization, and (ii) the number of days during the
11730	11730	14 applicable billing cycle.
11731	11731	15 "Unscheduled event" means a time period communicated by
11732	11732	16 the interconnecting utility to the stand-alone storage system
11733	11733	17 under the terms of this Section not less than 30 minutes in
11734	11734	18 advance.
11735	11735	19 (b) The General Assembly finds that stand-alone energy
11736	11736	20 storage systems interconnected to the distribution grid but
11737	11737	21 not interconnected behind a customer meter can provide unique
11738	11738	22 values and benefits to electric ratepayers in Illinois. The
11739	11739	23 General Assembly further finds that the stand-alone energy
11740	11740	24 storage systems convey additional value when deployed in
11741	11741	25 equity investment eligible communities, which will benefit
11742	11742	26 from property taxes, jobs, and relief to the local
11743	11743
11744	11744
11745	11745
11746	11746
11747	11747
11748	11748	SB2497 - 326 - LRB104 12224 JDS 22330 b
11749	11749
11750	11750
11751	11751	SB2497- 327 -LRB104 12224 JDS 22330 b SB2497 - 327 - LRB104 12224 JDS 22330 b
11752	11752	SB2497 - 327 - LRB104 12224 JDS 22330 b
11753	11753	1 distribution system. The General Assembly further finds that a
11754	11754	2 well-designed stand-alone energy storage system program can
11755	11755	3 reduce the cost to serve all customers, including but not
11756	11756	4 limited to relieving stress on the distribution system,
11757	11757	5 lowering the cost of energy and capacity, and reducing
11758	11758	6 reliance on higher-polluting peaker plants.
11759	11759	7 (c) Within 120 days after the effective date of this
11760	11760	8 amendatory Act of the 104th General Assembly, each electric
11761	11761	9 utility serving at least 200,000 customers as of January 1,
11762	11762	10 2024 shall file a stand-alone energy storage system program
11763	11763	11 tariff with the following terms:
11764	11764	12 (1) Any stand-alone energy storage system with an
11765	11765	13 aggregate inverter nameplate capacity of less than or
11766	11766	14 equal to 5,000 kilowatts that is not owned or operated by
11767	11767	15 the interconnecting electric utility may participate. The
11768	11768	16 tariff shall not contain a limitation on total
11769	11769	17 participation.
11770	11770	18 (2) Each stand-alone energy storage system shall be
11771	11771	19 considered a retail customer of the interconnecting
11772	11772	20 utility. Notwithstanding any other provision of this Act
11773	11773	21 or utility practice, the billing cycle for each such
11774	11774	22 customer shall be the first to the final day of one
11775	11775	23 calendar month.
11776	11776	24 (3) An owner or operator of a stand-alone energy
11777	11777	25 storage system may designate or re-designate the
11778	11778	26 participating capacity of a participating system not more
11779	11779
11780	11780
11781	11781
11782	11782
11783	11783
11784	11784	SB2497 - 327 - LRB104 12224 JDS 22330 b
11785	11785
11786	11786
11787	11787	SB2497- 328 -LRB104 12224 JDS 22330 b SB2497 - 328 - LRB104 12224 JDS 22330 b
11788	11788	SB2497 - 328 - LRB104 12224 JDS 22330 b
11789	11789	1 than one time per calendar year.
11790	11790	2 (4) Imports shall be charged the following amounts:
11791	11791	3 (A) A rate per kilowatt-hour equal to the
11792	11792	4 day-ahead locational marginal price for the utility
11793	11793	5 zone of the applicable regional transmission
11794	11794	6 organization at the time of import;
11795	11795	7 (B) A rate per kilowatt-hour for distribution
11796	11796	8 charges equal to the per kilowatt-hour charges
11797	11797	9 applicable to the dusk-to-dawn lighting class of the
11798	11798	10 applicable utility; and
11799	11799	11 (C) Taxes and other fees applicable to the
11800	11800	12 dusk-to-dawn lighting class of the applicable utility.
11801	11801	13 The utility shall not apply any other charges to imports,
11802	11802	14 including any demand-based distribution charges. If charges
11803	11803	15 for imports exceed payments for exports during a billing
11804	11804	16 cycle, the utility shall issue a bill to the owner of the
11805	11805	17 stand-alone energy storage system on the same terms and
11806	11806	18 conditions as bills are sent to retail customers for utility
11807	11807	19 charges under such utilities tariffs.
11808	11808	20 (5) Exports shall be paid at the following amounts:
11809	11809	21 (A) A rate per kilowatt-hour equal to the
11810	11810	22 day-ahead locational marginal price for the utility
11811	11811	23 zone of the applicable regional transmission
11812	11812	24 organization at the time of export;
11813	11813	25 (B) A fixed amount per quarter equal to: (i) the
11814	11814	26 sum of the capacity amount and the transmission amount
11815	11815
11816	11816
11817	11817
11818	11818
11819	11819
11820	11820	SB2497 - 328 - LRB104 12224 JDS 22330 b
11821	11821
11822	11822
11823	11823	SB2497- 329 -LRB104 12224 JDS 22330 b SB2497 - 329 - LRB104 12224 JDS 22330 b
11824	11824	SB2497 - 329 - LRB104 12224 JDS 22330 b
11825	11825	1 for the previous quarter; multiplied by (ii) the ratio
11826	11826	2 to the number of responding events to scheduled
11827	11827	3 events, not to exceed 1.00; and
11828	11828	4 (C) Additional compensation for unscheduled
11829	11829	5 events, as described in the tariff.
11830	11830	6 The utility shall not apply other payments to exports
11831	11831	7 unless approved by the Commission. If the payment for exports
11832	11832	8 exceeds the charges for imports during a billing cycle, the
11833	11833	9 utility shall make a payment by wire transfer or automated
11834	11834	10 clearing house, or other electronic payment to an account
11835	11835	11 designated by the system owner.
11836	11836	12 (6) If the sum of the capacity amount and the
11837	11837	13 transmission amount is zero during a billing cycle, the
11838	11838	14 stand-alone energy storage device shall receive no payment
11839	11839	15 for exports other than the day-ahead locational marginal
11840	11840	16 price for the utility zone of the applicable regional
11841	11841	17 transmission organization at the time of export.
11842	11842	18 (7) Events.
11843	11843	19 (A) Not later than July 1 of each year, each
11844	11844	20 electric utility shall propose four-hour periods for
11845	11845	21 each non-holiday weekday during each calendar quarter
11846	11846	22 the following calendar year. The electric utility
11847	11847	23 shall set such four-hour periods to meet the electric
11848	11848	24 utility's then-estimate of the four-hour window most
11849	11849	25 likely to coincide with daily coincident peak during
11850	11850	26 the specified quarter. The four-hour periods shall be
11851	11851
11852	11852
11853	11853
11854	11854
11855	11855
11856	11856	SB2497 - 329 - LRB104 12224 JDS 22330 b
11857	11857
11858	11858
11859	11859	SB2497- 330 -LRB104 12224 JDS 22330 b SB2497 - 330 - LRB104 12224 JDS 22330 b
11860	11860	SB2497 - 330 - LRB104 12224 JDS 22330 b
11861	11861	1 submitted as an informational sheet to the tariff
11862	11862	2 described in this subsection (c). These four-hour
11863	11863	3 windows shall be the times for scheduled events.
11864	11864	4 (B) If an electric utility reasonably believes
11865	11865	5 that an hour outside the four-hour scheduled event
11866	11866	6 windows is likely to be the electric utility's
11867	11867	7 coincident peak for purposes of assessing peak load
11868	11868	8 capacity or network system peak load under the
11869	11869	9 utility's tariffs with the applicable regional
11870	11870	10 transmission organization, on not less than 30 minutes
11871	11871	11 notice the electric utility shall call an unscheduled
11872	11872	12 event for that hour.
11873	11873	13 (8) A method of communication between each
11874	11874	14 participating stand-alone energy storage system or its
11875	11875	15 designee and the utility to communicate scheduled events
11876	11876	16 and unscheduled events.
11877	11877	17 (9) Terms and conditions of data accessible to the
11878	11878	18 stand-alone energy storage system or its designee,
11879	11879	19 including but not limited to performance during scheduled
11880	11880	20 events during a calendar quarter and applicable capacity
11881	11881	21 amount and transmission amount.
11882	11882	22 (10) A procedure for dispute resolution regarding
11883	11883	23 measurement of the meter or regarding any right or
11884	11884	24 obligation of either the interconnecting electric utility
11885	11885	25 or the stand-alone storage system.
11886	11886	26 (d) The Commission shall approve, with modifications as
11887	11887
11888	11888
11889	11889
11890	11890
11891	11891
11892	11892	SB2497 - 330 - LRB104 12224 JDS 22330 b
11893	11893
11894	11894
11895	11895	SB2497- 331 -LRB104 12224 JDS 22330 b SB2497 - 331 - LRB104 12224 JDS 22330 b
11896	11896	SB2497 - 331 - LRB104 12224 JDS 22330 b
11897	11897	1 necessary to conform to this Section, such tariff within 240
11898	11898	2 days after the utility's filing.
11899	11899	3 (e) Within 120 days of the effective date of this
11900	11900	4 amendatory Act of the 104th General Assembly, each electric
11901	11901	5 utility serving at least 200,000 customers as of January 1,
11902	11902	6 2024 shall either (1) file with the federal energy regulatory
11903	11903	7 commission a modification of its tariffs with the applicable
11904	11904	8 regional transmission organization to allow a negative peak
11905	11905	9 load contribution and negative network system peak load
11906	11906	10 calculation for a retail customer if (and to the extent that)
11907	11907	11 such retail customer is a net exporter of power and energy
11908	11908	12 during the time period(s) during which peak load contributions
11909	11909	13 and network system peak loads are calculated; or (2) file a
11910	11910	14 notice concurrent with the tariff identified in subsection (b)
11911	11911	15 of this Section that such tariff is already in place with the
11912	11912	16 applicable regional transmission organization.
11913	11913	17 (f) Each participating electric utility shall be entitled
11914	11914	18 to recover its reasonable and prudent costs incurred to
11915	11915	19 administer the stand-alone energy storage program through the
11916	11916	20 multi-year rate plan identified in Section 16-108.18 of this
11917	11917	21 Act.
11918	11918	22 (g) Nothing prohibits a stand-alone energy storage system
11919	11919	23 taking service under the tariff described in subsection (c) of
11920	11920	24 this Section from also receiving a smart inverter rebate
11921	11921	25 described in subsection (c) of Section 16-107.6 of this Act.
11922	11922	26 The compensation and charges described in paragraphs (2) and
11923	11923
11924	11924
11925	11925
11926	11926
11927	11927
11928	11928	SB2497 - 331 - LRB104 12224 JDS 22330 b
11929	11929
11930	11930
11931	11931	SB2497- 332 -LRB104 12224 JDS 22330 b SB2497 - 332 - LRB104 12224 JDS 22330 b
11932	11932	SB2497 - 332 - LRB104 12224 JDS 22330 b
11933	11933	1 (3) of subsection (c) of this Section shall neither increase
11934	11934	2 nor decrease due to receipt of a smart inverter rebate by the
11935	11935	3 stand-alone energy storage system.
11936	11936	4 (h) Nothing prohibits an electric utility from applying
11937	11937	5 the negative peak load contribution of a stand-alone energy
11938	11938	6 storage device participating under the tariff described in
11939	11939	7 subsection (c) of this Section towards the utility's peak load
11940	11940	8 reduction performance metric authorized by item (ii) of
11941	11941	9 subparagraph (A) of paragraph (2) of subsection (e) of Section
11942	11942	10 16-108.18.
11943	11943	11 (i) To the extent that wholesale credit and load
11944	11944	12 obligation reductions does not completely offset the cost of
11945	11945	13 providing payment to stand-alone energy storage systems under
11946	11946	14 the tariff described in this Section, the electric utility
11947	11947	15 shall recover the remaining costs through its Multi-Year Rate
11948	11948	16 Plan or, if the electric utility does not have a Multi-Year
11949	11949	17 Rate Plan, a general request for a rate increase under Section
11950	11950	18 9-201 of this Act.
11951	11951	19 (j) Participation in the program shall not prohibit an
11952	11952	20 energy storage system from selling non-duplicative products
11953	11953	21 and services in a wholesale market.
11954	11954	22 (220 ILCS 5/16-108)
11955	11955	23 Sec. 16-108. Recovery of costs associated with the
11956	11956	24 provision of delivery and other services.
11957	11957	25 (a) An electric utility shall file a delivery services
11958	11958
11959	11959
11960	11960
11961	11961
11962	11962
11963	11963	SB2497 - 332 - LRB104 12224 JDS 22330 b
11964	11964
11965	11965
11966	11966	SB2497- 333 -LRB104 12224 JDS 22330 b SB2497 - 333 - LRB104 12224 JDS 22330 b
11967	11967	SB2497 - 333 - LRB104 12224 JDS 22330 b
11968	11968	1 tariff with the Commission at least 210 days prior to the date
11969	11969	2 that it is required to begin offering such services pursuant
11970	11970	3 to this Act. An electric utility shall provide the components
11971	11971	4 of delivery services that are subject to the jurisdiction of
11972	11972	5 the Federal Energy Regulatory Commission at the same prices,
11973	11973	6 terms and conditions set forth in its applicable tariff as
11974	11974	7 approved or allowed into effect by that Commission. The
11975	11975	8 Commission shall otherwise have the authority pursuant to
11976	11976	9 Article IX to review, approve, and modify the prices, terms
11977	11977	10 and conditions of those components of delivery services not
11978	11978	11 subject to the jurisdiction of the Federal Energy Regulatory
11979	11979	12 Commission, including the authority to determine the extent to
11980	11980	13 which such delivery services should be offered on an unbundled
11981	11981	14 basis. In making any such determination the Commission shall
11982	11982	15 consider, at a minimum, the effect of additional unbundling on
11983	11983	16 (i) the objective of just and reasonable rates, (ii) electric
11984	11984	17 utility employees, and (iii) the development of competitive
11985	11985	18 markets for electric energy services in Illinois.
11986	11986	19 (b) The Commission shall enter an order approving, or
11987	11987	20 approving as modified, the delivery services tariff no later
11988	11988	21 than 30 days prior to the date on which the electric utility
11989	11989	22 must commence offering such services. The Commission may
11990	11990	23 subsequently modify such tariff pursuant to this Act.
11991	11991	24 (c) The electric utility's tariffs shall define the
11992	11992	25 classes of its customers for purposes of delivery services
11993	11993	26 charges. Delivery services shall be priced and made available
11994	11994
11995	11995
11996	11996
11997	11997
11998	11998
11999	11999	SB2497 - 333 - LRB104 12224 JDS 22330 b
12000	12000
12001	12001
12002	12002	SB2497- 334 -LRB104 12224 JDS 22330 b SB2497 - 334 - LRB104 12224 JDS 22330 b
12003	12003	SB2497 - 334 - LRB104 12224 JDS 22330 b
12004	12004	1 to all retail customers electing delivery services in each
12005	12005	2 such class on a nondiscriminatory basis regardless of whether
12006	12006	3 the retail customer chooses the electric utility, an affiliate
12007	12007	4 of the electric utility, or another entity as its supplier of
12008	12008	5 electric power and energy. Charges for delivery services shall
12009	12009	6 be cost based, and shall allow the electric utility to recover
12010	12010	7 the costs of providing delivery services through its charges
12011	12011	8 to its delivery service customers that use the facilities and
12012	12012	9 services associated with such costs. Such costs shall include
12013	12013	10 the costs of owning, operating and maintaining transmission
12014	12014	11 and distribution facilities. The Commission shall also be
12015	12015	12 authorized to consider whether, and if so to what extent, the
12016	12016	13 following costs are appropriately included in the electric
12017	12017	14 utility's delivery services rates: (i) the costs of that
12018	12018	15 portion of generation facilities used for the production and
12019	12019	16 absorption of reactive power in order that retail customers
12020	12020	17 located in the electric utility's service area can receive
12021	12021	18 electric power and energy from suppliers other than the
12022	12022	19 electric utility, and (ii) the costs associated with the use
12023	12023	20 and redispatch of generation facilities to mitigate
12024	12024	21 constraints on the transmission or distribution system in
12025	12025	22 order that retail customers located in the electric utility's
12026	12026	23 service area can receive electric power and energy from
12027	12027	24 suppliers other than the electric utility. Nothing in this
12028	12028	25 subsection shall be construed as directing the Commission to
12029	12029	26 allocate any of the costs described in (i) or (ii) that are
12030	12030
12031	12031
12032	12032
12033	12033
12034	12034
12035	12035	SB2497 - 334 - LRB104 12224 JDS 22330 b
12036	12036
12037	12037
12038	12038	SB2497- 335 -LRB104 12224 JDS 22330 b SB2497 - 335 - LRB104 12224 JDS 22330 b
12039	12039	SB2497 - 335 - LRB104 12224 JDS 22330 b
12040	12040	1 found to be appropriately included in the electric utility's
12041	12041	2 delivery services rates to any particular customer group or
12042	12042	3 geographic area in setting delivery services rates.
12043	12043	4 (d) The Commission shall establish charges, terms and
12044	12044	5 conditions for delivery services that are just and reasonable
12045	12045	6 and shall take into account customer impacts when establishing
12046	12046	7 such charges. In establishing charges, terms and conditions
12047	12047	8 for delivery services, the Commission shall take into account
12048	12048	9 voltage level differences. A retail customer shall have the
12049	12049	10 option to request to purchase electric service at any delivery
12050	12050	11 service voltage reasonably and technically feasible from the
12051	12051	12 electric facilities serving that customer's premises provided
12052	12052	13 that there are no significant adverse impacts upon system
12053	12053	14 reliability or system efficiency. A retail customer shall also
12054	12054	15 have the option to request to purchase electric service at any
12055	12055	16 point of delivery that is reasonably and technically feasible
12056	12056	17 provided that there are no significant adverse impacts on
12057	12057	18 system reliability or efficiency. Such requests shall not be
12058	12058	19 unreasonably denied.
12059	12059	20 (e) Electric utilities shall recover the costs of
12060	12060	21 installing, operating or maintaining facilities for the
12061	12061	22 particular benefit of one or more delivery services customers,
12062	12062	23 including without limitation any costs incurred in complying
12063	12063	24 with a customer's request to be served at a different voltage
12064	12064	25 level, directly from the retail customer or customers for
12065	12065	26 whose benefit the costs were incurred, to the extent such
12066	12066
12067	12067
12068	12068
12069	12069
12070	12070
12071	12071	SB2497 - 335 - LRB104 12224 JDS 22330 b
12072	12072
12073	12073
12074	12074	SB2497- 336 -LRB104 12224 JDS 22330 b SB2497 - 336 - LRB104 12224 JDS 22330 b
12075	12075	SB2497 - 336 - LRB104 12224 JDS 22330 b
12076	12076	1 costs are not recovered through the charges referred to in
12077	12077	2 subsections (c) and (d) of this Section.
12078	12078	3 (f) An electric utility shall be entitled but not required
12079	12079	4 to implement transition charges in conjunction with the
12080	12080	5 offering of delivery services pursuant to Section 16-104. If
12081	12081	6 an electric utility implements transition charges, it shall
12082	12082	7 implement such charges for all delivery services customers and
12083	12083	8 for all customers described in subsection (h), but shall not
12084	12084	9 implement transition charges for power and energy that a
12085	12085	10 retail customer takes from cogeneration or self-generation
12086	12086	11 facilities located on that retail customer's premises, if such
12087	12087	12 facilities meet the following criteria:
12088	12088	13 (i) the cogeneration or self-generation facilities
12089	12089	14 serve a single retail customer and are located on that
12090	12090	15 retail customer's premises (for purposes of this
12091	12091	16 subparagraph and subparagraph (ii), an industrial or
12092	12092	17 manufacturing retail customer and a third party contractor
12093	12093	18 that is served by such industrial or manufacturing
12094	12094	19 customer through such retail customer's own electrical
12095	12095	20 distribution facilities under the circumstances described
12096	12096	21 in subsection (vi) of the definition of "alternative
12097	12097	22 retail electric supplier" set forth in Section 16-102,
12098	12098	23 shall be considered a single retail customer);
12099	12099	24 (ii) the cogeneration or self-generation facilities
12100	12100	25 either (A) are sized pursuant to generally accepted
12101	12101	26 engineering standards for the retail customer's electrical
12102	12102
12103	12103
12104	12104
12105	12105
12106	12106
12107	12107	SB2497 - 336 - LRB104 12224 JDS 22330 b
12108	12108
12109	12109
12110	12110	SB2497- 337 -LRB104 12224 JDS 22330 b SB2497 - 337 - LRB104 12224 JDS 22330 b
12111	12111	SB2497 - 337 - LRB104 12224 JDS 22330 b
12112	12112	1 load at that premises (taking into account standby or
12113	12113	2 other reliability considerations related to that retail
12114	12114	3 customer's operations at that site) or (B) if the facility
12115	12115	4 is a cogeneration facility located on the retail
12116	12116	5 customer's premises, the retail customer is the thermal
12117	12117	6 host for that facility and the facility has been designed
12118	12118	7 to meet that retail customer's thermal energy requirements
12119	12119	8 resulting in electrical output beyond that retail
12120	12120	9 customer's electrical demand at that premises, comply with
12121	12121	10 the operating and efficiency standards applicable to
12122	12122	11 "qualifying facilities" specified in title 18 Code of
12123	12123	12 Federal Regulations Section 292.205 as in effect on the
12124	12124	13 effective date of this amendatory Act of 1999;
12125	12125	14 (iii) the retail customer on whose premises the
12126	12126	15 facilities are located either has an exclusive right to
12127	12127	16 receive, and corresponding obligation to pay for, all of
12128	12128	17 the electrical capacity of the facility, or in the case of
12129	12129	18 a cogeneration facility that has been designed to meet the
12130	12130	19 retail customer's thermal energy requirements at that
12131	12131	20 premises, an identified amount of the electrical capacity
12132	12132	21 of the facility, over a minimum 5-year period; and
12133	12133	22 (iv) if the cogeneration facility is sized for the
12134	12134	23 retail customer's thermal load at that premises but
12135	12135	24 exceeds the electrical load, any sales of excess power or
12136	12136	25 energy are made only at wholesale, are subject to the
12137	12137	26 jurisdiction of the Federal Energy Regulatory Commission,
12138	12138
12139	12139
12140	12140
12141	12141
12142	12142
12143	12143	SB2497 - 337 - LRB104 12224 JDS 22330 b
12144	12144
12145	12145
12146	12146	SB2497- 338 -LRB104 12224 JDS 22330 b SB2497 - 338 - LRB104 12224 JDS 22330 b
12147	12147	SB2497 - 338 - LRB104 12224 JDS 22330 b
12148	12148	1 and are not for the purpose of circumventing the
12149	12149	2 provisions of this subsection (f).
12150	12150	3 If a generation facility located at a retail customer's
12151	12151	4 premises does not meet the above criteria, an electric utility
12152	12152	5 implementing transition charges shall implement a transition
12153	12153	6 charge until December 31, 2006 for any power and energy taken
12154	12154	7 by such retail customer from such facility as if such power and
12155	12155	8 energy had been delivered by the electric utility. Provided,
12156	12156	9 however, that an industrial retail customer that is taking
12157	12157	10 power from a generation facility that does not meet the above
12158	12158	11 criteria but that is located on such customer's premises will
12159	12159	12 not be subject to a transition charge for the power and energy
12160	12160	13 taken by such retail customer from such generation facility if
12161	12161	14 the facility does not serve any other retail customer and
12162	12162	15 either was installed on behalf of the customer and for its own
12163	12163	16 use prior to January 1, 1997, or is both predominantly fueled
12164	12164	17 by byproducts of such customer's manufacturing process at such
12165	12165	18 premises and sells or offers an average of 300 megawatts or
12166	12166	19 more of electricity produced from such generation facility
12167	12167	20 into the wholesale market. Such charges shall be calculated as
12168	12168	21 provided in Section 16-102, and shall be collected on each
12169	12169	22 kilowatt-hour delivered under a delivery services tariff to a
12170	12170	23 retail customer from the date the customer first takes
12171	12171	24 delivery services until December 31, 2006 except as provided
12172	12172	25 in subsection (h) of this Section. Provided, however, that an
12173	12173	26 electric utility, other than an electric utility providing
12174	12174
12175	12175
12176	12176
12177	12177
12178	12178
12179	12179	SB2497 - 338 - LRB104 12224 JDS 22330 b
12180	12180
12181	12181
12182	12182	SB2497- 339 -LRB104 12224 JDS 22330 b SB2497 - 339 - LRB104 12224 JDS 22330 b
12183	12183	SB2497 - 339 - LRB104 12224 JDS 22330 b
12184	12184	1 service to at least 1,000,000 customers in this State on
12185	12185	2 January 1, 1999, shall be entitled to petition for entry of an
12186	12186	3 order by the Commission authorizing the electric utility to
12187	12187	4 implement transition charges for an additional period ending
12188	12188	5 no later than December 31, 2008. The electric utility shall
12189	12189	6 file its petition with supporting evidence no earlier than 16
12190	12190	7 months, and no later than 12 months, prior to December 31,
12191	12191	8 2006. The Commission shall hold a hearing on the electric
12192	12192	9 utility's petition and shall enter its order no later than 8
12193	12193	10 months after the petition is filed. The Commission shall
12194	12194	11 determine whether and to what extent the electric utility
12195	12195	12 shall be authorized to implement transition charges for an
12196	12196	13 additional period. The Commission may authorize the electric
12197	12197	14 utility to implement transition charges for some or all of the
12198	12198	15 additional period, and shall determine the mitigation factors
12199	12199	16 to be used in implementing such transition charges; provided,
12200	12200	17 that the Commission shall not authorize mitigation factors
12201	12201	18 less than 110% of those in effect during the 12 months ended
12202	12202	19 December 31, 2006. In making its determination, the Commission
12203	12203	20 shall consider the following factors: the necessity to
12204	12204	21 implement transition charges for an additional period in order
12205	12205	22 to maintain the financial integrity of the electric utility;
12206	12206	23 the prudence of the electric utility's actions in reducing its
12207	12207	24 costs since the effective date of this amendatory Act of 1997;
12208	12208	25 the ability of the electric utility to provide safe, adequate
12209	12209	26 and reliable service to retail customers in its service area;
12210	12210
12211	12211
12212	12212
12213	12213
12214	12214
12215	12215	SB2497 - 339 - LRB104 12224 JDS 22330 b
12216	12216
12217	12217
12218	12218	SB2497- 340 -LRB104 12224 JDS 22330 b SB2497 - 340 - LRB104 12224 JDS 22330 b
12219	12219	SB2497 - 340 - LRB104 12224 JDS 22330 b
12220	12220	1 and the impact on competition of allowing the electric utility
12221	12221	2 to implement transition charges for the additional period.
12222	12222	3 (g) The electric utility shall file tariffs that establish
12223	12223	4 the transition charges to be paid by each class of customers to
12224	12224	5 the electric utility in conjunction with the provision of
12225	12225	6 delivery services. The electric utility's tariffs shall define
12226	12226	7 the classes of its customers for purposes of calculating
12227	12227	8 transition charges. The electric utility's tariffs shall
12228	12228	9 provide for the calculation of transition charges on a
12229	12229	10 customer-specific basis for any retail customer whose average
12230	12230	11 monthly maximum electrical demand on the electric utility's
12231	12231	12 system during the 6 months with the customer's highest monthly
12232	12232	13 maximum electrical demands equals or exceeds 3.0 megawatts for
12233	12233	14 electric utilities having more than 1,000,000 customers, and
12234	12234	15 for other electric utilities for any customer that has an
12235	12235	16 average monthly maximum electrical demand on the electric
12236	12236	17 utility's system of one megawatt or more, and (A) for which
12237	12237	18 there exists data on the customer's usage during the 3 years
12238	12238	19 preceding the date that the customer became eligible to take
12239	12239	20 delivery services, or (B) for which there does not exist data
12240	12240	21 on the customer's usage during the 3 years preceding the date
12241	12241	22 that the customer became eligible to take delivery services,
12242	12242	23 if in the electric utility's reasonable judgment there exists
12243	12243	24 comparable usage information or a sufficient basis to develop
12244	12244	25 such information, and further provided that the electric
12245	12245	26 utility can require customers for which an individual
12246	12246
12247	12247
12248	12248
12249	12249
12250	12250
12251	12251	SB2497 - 340 - LRB104 12224 JDS 22330 b
12252	12252
12253	12253
12254	12254	SB2497- 341 -LRB104 12224 JDS 22330 b SB2497 - 341 - LRB104 12224 JDS 22330 b
12255	12255	SB2497 - 341 - LRB104 12224 JDS 22330 b
12256	12256	1 calculation is made to sign contracts that set forth the
12257	12257	2 transition charges to be paid by the customer to the electric
12258	12258	3 utility pursuant to the tariff.
12259	12259	4 (h) An electric utility shall also be entitled to file
12260	12260	5 tariffs that allow it to collect transition charges from
12261	12261	6 retail customers in the electric utility's service area that
12262	12262	7 do not take delivery services but that take electric power or
12263	12263	8 energy from an alternative retail electric supplier or from an
12264	12264	9 electric utility other than the electric utility in whose
12265	12265	10 service area the customer is located. Such charges shall be
12266	12266	11 calculated, in accordance with the definition of transition
12267	12267	12 charges in Section 16-102, for the period of time that the
12268	12268	13 customer would be obligated to pay transition charges if it
12269	12269	14 were taking delivery services, except that no deduction for
12270	12270	15 delivery services revenues shall be made in such calculation,
12271	12271	16 and usage data from the customer's class shall be used where
12272	12272	17 historical usage data is not available for the individual
12273	12273	18 customer. The customer shall be obligated to pay such charges
12274	12274	19 on a lump sum basis on or before the date on which the customer
12275	12275	20 commences to take service from the alternative retail electric
12276	12276	21 supplier or other electric utility, provided, that the
12277	12277	22 electric utility in whose service area the customer is located
12278	12278	23 shall offer the customer the option of signing a contract
12279	12279	24 pursuant to which the customer pays such charges ratably over
12280	12280	25 the period in which the charges would otherwise have applied.
12281	12281	26 (i) An electric utility shall be entitled to add to the
12282	12282
12283	12283
12284	12284
12285	12285
12286	12286
12287	12287	SB2497 - 341 - LRB104 12224 JDS 22330 b
12288	12288
12289	12289
12290	12290	SB2497- 342 -LRB104 12224 JDS 22330 b SB2497 - 342 - LRB104 12224 JDS 22330 b
12291	12291	SB2497 - 342 - LRB104 12224 JDS 22330 b
12292	12292	1 bills of delivery services customers charges pursuant to
12293	12293	2 Sections 9-221, 9-222 (except as provided in Section 9-222.1),
12294	12294	3 and Section 16-114 of this Act, Section 5-5 of the Electricity
12295	12295	4 Infrastructure Maintenance Fee Law, Section 6-5 of the
12296	12296	5 Renewable Energy, Energy Efficiency, and Coal Resources
12297	12297	6 Development Law of 1997, and Section 13 of the Energy
12298	12298	7 Assistance Act.
12299	12299	8 (i-5) An electric utility required to impose the Coal to
12300	12300	9 Solar and Energy Storage Initiative Charge provided for in
12301	12301	10 subsection (c-5) of Section 1-75 of the Illinois Power Agency
12302	12302	11 Act shall add such charge to the bills of its delivery services
12303	12303	12 customers pursuant to the terms of a tariff conforming to the
12304	12304	13 requirements of subsection (c-5) of Section 1-75 of the
12305	12305	14 Illinois Power Agency Act and this subsection (i-5) and filed
12306	12306	15 with and approved by the Commission. The electric utility
12307	12307	16 shall file its proposed tariff with the Commission on or
12308	12308	17 before July 1, 2022 to be effective, after review and approval
12309	12309	18 or modification by the Commission, beginning January 1, 2023.
12310	12310	19 On or before December 1, 2022, the Commission shall review the
12311	12311	20 electric utility's proposed tariff, including by conducting a
12312	12312	21 docketed proceeding if deemed necessary by the Commission, and
12313	12313	22 shall approve the proposed tariff or direct the electric
12314	12314	23 utility to make modifications the Commission finds necessary
12315	12315	24 for the tariff to conform to the requirements of subsection
12316	12316	25 (c-5) of Section 1-75 of the Illinois Power Agency Act and this
12317	12317	26 subsection (i-5). The electric utility's tariff shall provide
12318	12318
12319	12319
12320	12320
12321	12321
12322	12322
12323	12323	SB2497 - 342 - LRB104 12224 JDS 22330 b
12324	12324
12325	12325
12326	12326	SB2497- 343 -LRB104 12224 JDS 22330 b SB2497 - 343 - LRB104 12224 JDS 22330 b
12327	12327	SB2497 - 343 - LRB104 12224 JDS 22330 b
12328	12328	1 for imposition of the Coal to Solar and Energy Storage
12329	12329	2 Initiative Charge on a per-kilowatthour basis to all
12330	12330	3 kilowatthours delivered by the electric utility to its
12331	12331	4 delivery services customers. The tariff shall provide for the
12332	12332	5 calculation of the Coal to Solar and Energy Storage Initiative
12333	12333	6 Charge to be in effect for the year beginning January 1, 2023
12334	12334	7 and each year beginning January 1 thereafter, sufficient to
12335	12335	8 collect the electric utility's estimated payment obligations
12336	12336	9 for the delivery year beginning the following June 1 under
12337	12337	10 contracts for purchase of renewable energy credits entered
12338	12338	11 into pursuant to subsection (c-5) of Section 1-75 of the
12339	12339	12 Illinois Power Agency Act and the obligations of the
12340	12340	13 Department of Commerce and Economic Opportunity, or any
12341	12341	14 successor department or agency, which for purposes of this
12342	12342	15 subsection (i-5) shall be referred to as the Department, to
12343	12343	16 make grant payments during such delivery year from the Coal to
12344	12344	17 Solar and Energy Storage Initiative Fund pursuant to grant
12345	12345	18 contracts entered into pursuant to subsection (c-5) of Section
12346	12346	19 1-75 of the Illinois Power Agency Act, and using the electric
12347	12347	20 utility's kilowatthour deliveries to its delivery services
12348	12348	21 customers during the delivery year ended May 31 of the
12349	12349	22 preceding calendar year. On or before November 1 of each year
12350	12350	23 beginning November 1, 2022, the Department shall notify the
12351	12351	24 electric utilities of the amount of the Department's estimated
12352	12352	25 obligations for grant payments during the delivery year
12353	12353	26 beginning the following June 1 pursuant to grant contracts
12354	12354
12355	12355
12356	12356
12357	12357
12358	12358
12359	12359	SB2497 - 343 - LRB104 12224 JDS 22330 b
12360	12360
12361	12361
12362	12362	SB2497- 344 -LRB104 12224 JDS 22330 b SB2497 - 344 - LRB104 12224 JDS 22330 b
12363	12363	SB2497 - 344 - LRB104 12224 JDS 22330 b
12364	12364	1 entered into pursuant to subsection (c-5) of Section 1-75 of
12365	12365	2 the Illinois Power Agency Act; and each electric utility shall
12366	12366	3 incorporate in the calculation of its Coal to Solar and Energy
12367	12367	4 Storage Initiative Charge the fractional portion of the
12368	12368	5 Department's estimated obligations equal to the electric
12369	12369	6 utility's kilowatthour deliveries to its delivery services
12370	12370	7 customers in the delivery year ended the preceding May 31
12371	12371	8 divided by the aggregate deliveries of both electric utilities
12372	12372	9 to delivery services customers in such delivery year. The
12373	12373	10 electric utility shall remit on a monthly basis to the State
12374	12374	11 Treasurer, for deposit in the Coal to Solar and Energy Storage
12375	12375	12 Initiative Fund provided for in subsection (c-5) of Section
12376	12376	13 1-75 of the Illinois Power Agency Act, the electric utility's
12377	12377	14 collections of the Coal to Solar and Energy Storage Initiative
12378	12378	15 Charge estimated to be needed by the Department for grant
12379	12379	16 payments pursuant to grant contracts entered into pursuant to
12380	12380	17 subsection (c-5) of Section 1-75 of the Illinois Power Agency
12381	12381	18 Act. The initial charge under the electric utility's tariff
12382	12382	19 shall be effective for kilowatthours delivered beginning
12383	12383	20 January 1, 2023, and thereafter shall be revised to be
12384	12384	21 effective January 1, 2024 and each January 1 thereafter, based
12385	12385	22 on the payment obligations for the delivery year beginning the
12386	12386	23 following June 1. The tariff shall provide for the electric
12387	12387	24 utility to make an annual filing with the Commission on or
12388	12388	25 before November 15 of each year, beginning in 2023, setting
12389	12389	26 forth the Coal to Solar and Energy Storage Initiative Charge
12390	12390
12391	12391
12392	12392
12393	12393
12394	12394
12395	12395	SB2497 - 344 - LRB104 12224 JDS 22330 b
12396	12396
12397	12397
12398	12398	SB2497- 345 -LRB104 12224 JDS 22330 b SB2497 - 345 - LRB104 12224 JDS 22330 b
12399	12399	SB2497 - 345 - LRB104 12224 JDS 22330 b
12400	12400	1 to be in effect for the year beginning the following January 1.
12401	12401	2 The electric utility's tariff shall also provide that the
12402	12402	3 electric utility shall make a filing with the Commission on or
12403	12403	4 before August 1 of each year beginning in 2024 setting forth a
12404	12404	5 reconciliation, for the delivery year ended the preceding May
12405	12405	6 31, of the electric utility's collections of the Coal to Solar
12406	12406	7 and Energy Storage Initiative Charge against actual payments
12407	12407	8 for renewable energy credits pursuant to contracts entered
12408	12408	9 into, and the actual grant payments by the Department pursuant
12409	12409	10 to grant contracts entered into, pursuant to subsection (c-5)
12410	12410	11 of Section 1-75 of the Illinois Power Agency Act. The tariff
12411	12411	12 shall provide that any excess or shortfall of collections to
12412	12412	13 payments shall be deducted from or added to, on a
12413	12413	14 per-kilowatthour basis, the Coal to Solar and Energy Storage
12414	12414	15 Initiative Charge, over the 6-month period beginning October 1
12415	12415	16 of that calendar year.
12416	12416	17 (j) If a retail customer that obtains electric power and
12417	12417	18 energy from cogeneration or self-generation facilities
12418	12418	19 installed for its own use on or before January 1, 1997,
12419	12419	20 subsequently takes service from an alternative retail electric
12420	12420	21 supplier or an electric utility other than the electric
12421	12421	22 utility in whose service area the customer is located for any
12422	12422	23 portion of the customer's electric power and energy
12423	12423	24 requirements formerly obtained from those facilities
12424	12424	25 (including that amount purchased from the utility in lieu of
12425	12425	26 such generation and not as standby power purchases, under a
12426	12426
12427	12427
12428	12428
12429	12429
12430	12430
12431	12431	SB2497 - 345 - LRB104 12224 JDS 22330 b
12432	12432
12433	12433
12434	12434	SB2497- 346 -LRB104 12224 JDS 22330 b SB2497 - 346 - LRB104 12224 JDS 22330 b
12435	12435	SB2497 - 346 - LRB104 12224 JDS 22330 b
12436	12436	1 cogeneration displacement tariff in effect as of the effective
12437	12437	2 date of this amendatory Act of 1997), the transition charges
12438	12438	3 otherwise applicable pursuant to subsections (f), (g), or (h)
12439	12439	4 of this Section shall not be applicable in any year to that
12440	12440	5 portion of the customer's electric power and energy
12441	12441	6 requirements formerly obtained from those facilities,
12442	12442	7 provided, that for purposes of this subsection (j), such
12443	12443	8 portion shall not exceed the average number of kilowatt-hours
12444	12444	9 per year obtained from the cogeneration or self-generation
12445	12445	10 facilities during the 3 years prior to the date on which the
12446	12446	11 customer became eligible for delivery services, except as
12447	12447	12 provided in subsection (f) of Section 16-110.
12448	12448	13 (k) The electric utility shall be entitled to recover
12449	12449	14 through tariffed charges all of the costs associated with the
12450	12450	15 purchase of zero emission credits from zero emission
12451	12451	16 facilities to meet the requirements of subsection (d-5) of
12452	12452	17 Section 1-75 of the Illinois Power Agency Act and all of the
12453	12453	18 costs associated with the purchase of carbon mitigation
12454	12454	19 credits from carbon-free energy resources to meet the
12455	12455	20 requirements of subsection (d-10) of Section 1-75 of the
12456	12456	21 Illinois Power Agency Act. Such costs shall include the costs
12457	12457	22 of procuring the zero emission credits and carbon mitigation
12458	12458	23 credits from carbon-free energy resources, as well as the
12459	12459	24 reasonable costs that the utility incurs as part of the
12460	12460	25 procurement processes and to implement and comply with plans
12461	12461	26 and processes approved by the Commission under subsections
12462	12462
12463	12463
12464	12464
12465	12465
12466	12466
12467	12467	SB2497 - 346 - LRB104 12224 JDS 22330 b
12468	12468
12469	12469
12470	12470	SB2497- 347 -LRB104 12224 JDS 22330 b SB2497 - 347 - LRB104 12224 JDS 22330 b
12471	12471	SB2497 - 347 - LRB104 12224 JDS 22330 b
12472	12472	1 (d-5) and (d-10). The costs shall be allocated across all
12473	12473	2 retail customers through a single, uniform cents per
12474	12474	3 kilowatt-hour charge applicable to all retail customers, which
12475	12475	4 shall appear as a separate line item on each customer's bill.
12476	12476	5 Beginning June 1, 2017, the electric utility shall be entitled
12477	12477	6 to recover through tariffed charges all of the costs
12478	12478	7 associated with the purchase of renewable energy resources to
12479	12479	8 meet the renewable energy resource standards of subsection (c)
12480	12480	9 of Section 1-75 of the Illinois Power Agency Act, under
12481	12481	10 procurement plans as approved in accordance with that Section
12482	12482	11 and Section 16-111.5 of this Act. Such costs shall include the
12483	12483	12 costs of procuring the renewable energy resources, as well as
12484	12484	13 the reasonable costs that the utility incurs as part of the
12485	12485	14 procurement processes and to implement and comply with plans
12486	12486	15 and processes approved by the Commission under such Sections.
12487	12487	16 The costs associated with the purchase of renewable energy
12488	12488	17 resources shall be allocated across all retail customers in
12489	12489	18 proportion to the amount of renewable energy resources the
12490	12490	19 utility procures for such customers through a single, uniform
12491	12491	20 cents per kilowatt-hour charge applicable to such retail
12492	12492	21 customers, which shall appear as a separate line item on each
12493	12493	22 such customer's bill. The credits, costs, and penalties
12494	12494	23 associated with the self-direct renewable portfolio standard
12495	12495	24 compliance program described in subparagraph (R) of paragraph
12496	12496	25 (1) of subsection (c) of Section 1-75 of the Illinois Power
12497	12497	26 Agency Act shall be allocated to approved eligible self-direct
12498	12498
12499	12499
12500	12500
12501	12501
12502	12502
12503	12503	SB2497 - 347 - LRB104 12224 JDS 22330 b
12504	12504
12505	12505
12506	12506	SB2497- 348 -LRB104 12224 JDS 22330 b SB2497 - 348 - LRB104 12224 JDS 22330 b
12507	12507	SB2497 - 348 - LRB104 12224 JDS 22330 b
12508	12508	1 customers by the utility in a cents per kilowatt-hour credit,
12509	12509	2 cost, or penalty, which shall appear as a separate line item on
12510	12510	3 each such customer's bill.
12511	12511	4 Beginning on June 1, 2024, the electric utility shall be
12512	12512	5 entitled to recover through tariffed charges all of the costs
12513	12513	6 associated with the purchase of energy storage credits to meet
12514	12514	7 the energy storage standards of Section 1-93 of the Illinois
12515	12515	8 Power Agency Act under procurement plans approved in
12516	12516	9 accordance with that Section and Section 16-111.5. The costs
12517	12517	10 shall include the costs of procuring the energy storage
12518	12518	11 credits and the reasonable costs that the utility incurs as
12519	12519	12 part of the procurement processes and implementing and
12520	12520	13 complying with plans and processes approved by the Commission.
12521	12521	14 The costs associated with the purchase of energy storage
12522	12522	15 credits shall be allocated across all retail customers in
12523	12523	16 proportion to the amount of energy storage credits the
12524	12524	17 electric utility procures for the customers through a single,
12525	12525	18 uniform cents per kilowatt-hour charge applicable to the
12526	12526	19 retail customers, that shall appear as a separate line item on
12527	12527	20 each customer's bill.
12528	12528	21 Notwithstanding whether the Commission has approved the
12529	12529	22 initial long-term renewable resources procurement plan as of
12530	12530	23 June 1, 2017, an electric utility shall place new tariffed
12531	12531	24 charges into effect beginning with the June 2017 monthly
12532	12532	25 billing period, to the extent practicable, to begin recovering
12533	12533	26 the costs of procuring renewable energy resources, as those
12534	12534
12535	12535
12536	12536
12537	12537
12538	12538
12539	12539	SB2497 - 348 - LRB104 12224 JDS 22330 b
12540	12540
12541	12541
12542	12542	SB2497- 349 -LRB104 12224 JDS 22330 b SB2497 - 349 - LRB104 12224 JDS 22330 b
12543	12543	SB2497 - 349 - LRB104 12224 JDS 22330 b
12544	12544	1 charges are calculated under the limitations described in
12545	12545	2 subparagraph (E) of paragraph (1) of subsection (c) of Section
12546	12546	3 1-75 of the Illinois Power Agency Act. Notwithstanding the
12547	12547	4 date on which the utility places such new tariffed charges
12548	12548	5 into effect, the utility shall be permitted to collect the
12549	12549	6 charges under such tariff as if the tariff had been in effect
12550	12550	7 beginning with the first day of the June 2017 monthly billing
12551	12551	8 period. For the delivery years commencing June 1, 2017, June
12552	12552	9 1, 2018, June 1, 2019, and each delivery year thereafter, the
12553	12553	10 electric utility shall deposit into a separate interest
12554	12554	11 bearing account of a financial institution the monies
12555	12555	12 collected under the tariffed charges. Money collected from
12556	12556	13 customers for the procurement of renewable energy resources in
12557	12557	14 a given delivery year may be spent by the utility for the
12558	12558	15 procurement of renewable resources over any of the following 5
12559	12559	16 delivery years, after which unspent money shall be credited
12560	12560	17 back to retail customers. The electric utility shall spend all
12561	12561	18 money collected in earlier delivery years that has not yet
12562	12562	19 been returned to customers, first, before spending money
12563	12563	20 collected in later delivery years. Any interest earned shall
12564	12564	21 be credited back to retail customers under the reconciliation
12565	12565	22 proceeding provided for in this subsection (k), provided that
12566	12566	23 the electric utility shall first be reimbursed from the
12567	12567	24 interest for the administrative costs that it incurs to
12568	12568	25 administer and manage the account. Any taxes due on the funds
12569	12569	26 in the account, or interest earned on it, will be paid from the
12570	12570
12571	12571
12572	12572
12573	12573
12574	12574
12575	12575	SB2497 - 349 - LRB104 12224 JDS 22330 b
12576	12576
12577	12577
12578	12578	SB2497- 350 -LRB104 12224 JDS 22330 b SB2497 - 350 - LRB104 12224 JDS 22330 b
12579	12579	SB2497 - 350 - LRB104 12224 JDS 22330 b
12580	12580	1 account or, if insufficient monies are available in the
12581	12581	2 account, from the monies collected under the tariffed charges
12582	12582	3 to recover the costs of procuring renewable energy resources.
12583	12583	4 Monies deposited in the account shall be subject to the
12584	12584	5 review, reconciliation, and true-up process described in this
12585	12585	6 subsection (k) that is applicable to the funds collected and
12586	12586	7 costs incurred for the procurement of renewable energy
12587	12587	8 resources.
12588	12588	9 The electric utility shall be entitled to recover all of
12589	12589	10 the costs identified in this subsection (k) through automatic
12590	12590	11 adjustment clause tariffs applicable to all of the utility's
12591	12591	12 retail customers that allow the electric utility to adjust its
12592	12592	13 tariffed charges consistent with this subsection (k). The
12593	12593	14 determination as to whether any excess funds were collected
12594	12594	15 during a given delivery year for the purchase of renewable
12595	12595	16 energy resources, and the crediting of any excess funds back
12596	12596	17 to retail customers, shall not be made until after the close of
12597	12597	18 the delivery year, which will ensure that the maximum amount
12598	12598	19 of funds is available to implement the approved long-term
12599	12599	20 renewable resources procurement plan during a given delivery
12600	12600	21 year. The amount of excess funds eligible to be credited back
12601	12601	22 to retail customers shall be reduced by an amount equal to the
12602	12602	23 payment obligations required by any contracts entered into by
12603	12603	24 an electric utility under contracts described in subsection
12604	12604	25 (b) of Section 1-56 and subsection (c) of Section 1-75 of the
12605	12605	26 Illinois Power Agency Act, even if such payments have not yet
12606	12606
12607	12607
12608	12608
12609	12609
12610	12610
12611	12611	SB2497 - 350 - LRB104 12224 JDS 22330 b
12612	12612
12613	12613
12614	12614	SB2497- 351 -LRB104 12224 JDS 22330 b SB2497 - 351 - LRB104 12224 JDS 22330 b
12615	12615	SB2497 - 351 - LRB104 12224 JDS 22330 b
12616	12616	1 been made and regardless of the delivery year in which those
12617	12617	2 payment obligations were incurred. Notwithstanding anything to
12618	12618	3 the contrary, including in tariffs authorized by this
12619	12619	4 subsection (k) in effect before the effective date of this
12620	12620	5 amendatory Act of the 102nd General Assembly, all unspent
12621	12621	6 funds as of May 31, 2021, excluding any funds credited to
12622	12622	7 customers during any utility billing cycle that commences
12623	12623	8 prior to the effective date of this amendatory Act of the 102nd
12624	12624	9 General Assembly, shall remain in the utility account and
12625	12625	10 shall on a first in, first out basis be used toward utility
12626	12626	11 payment obligations under contracts described in subsection
12627	12627	12 (b) of Section 1-56 and subsection (c) of Section 1-75 of the
12628	12628	13 Illinois Power Agency Act. The electric utility's collections
12629	12629	14 under such automatic adjustment clause tariffs to recover the
12630	12630	15 costs of renewable energy resources, zero emission credits
12631	12631	16 from zero emission facilities, and carbon mitigation credits
12632	12632	17 from carbon-free energy resources shall be subject to separate
12633	12633	18 annual review, reconciliation, and true-up against actual
12634	12634	19 costs by the Commission under a procedure that shall be
12635	12635	20 specified in the electric utility's automatic adjustment
12636	12636	21 clause tariffs and that shall be approved by the Commission in
12637	12637	22 connection with its approval of such tariffs. The procedure
12638	12638	23 shall provide that any difference between the electric
12639	12639	24 utility's collections for zero emission credits and carbon
12640	12640	25 mitigation credits under the automatic adjustment charges for
12641	12641	26 an annual period and the electric utility's actual costs of
12642	12642
12643	12643
12644	12644
12645	12645
12646	12646
12647	12647	SB2497 - 351 - LRB104 12224 JDS 22330 b
12648	12648
12649	12649
12650	12650	SB2497- 352 -LRB104 12224 JDS 22330 b SB2497 - 352 - LRB104 12224 JDS 22330 b
12651	12651	SB2497 - 352 - LRB104 12224 JDS 22330 b
12652	12652	1 zero emission credits from zero emission facilities and carbon
12653	12653	2 mitigation credits from carbon-free energy resources for that
12654	12654	3 same annual period shall be refunded to or collected from, as
12655	12655	4 applicable, the electric utility's retail customers in
12656	12656	5 subsequent periods.
12657	12657	6 Nothing in this subsection (k) is intended to affect,
12658	12658	7 limit, or change the right of the electric utility to recover
12659	12659	8 the costs associated with the procurement of renewable energy
12660	12660	9 resources for periods commencing before, on, or after June 1,
12661	12661	10 2017, as otherwise provided in the Illinois Power Agency Act.
12662	12662	11 The funding available under this subsection (k), if any,
12663	12663	12 for the programs described under subsection (b) of Section
12664	12664	13 1-56 of the Illinois Power Agency Act shall not reduce the
12665	12665	14 amount of funding for the programs described in subparagraph
12666	12666	15 (O) of paragraph (1) of subsection (c) of Section 1-75 of the
12667	12667	16 Illinois Power Agency Act. If funding is available under this
12668	12668	17 subsection (k) for programs described under subsection (b) of
12669	12669	18 Section 1-56 of the Illinois Power Agency Act, then the
12670	12670	19 long-term renewable resources plan shall provide for the
12671	12671	20 Agency to procure contracts in an amount that does not exceed
12672	12672	21 the funding, and the contracts approved by the Commission
12673	12673	22 shall be executed by the applicable utility or utilities.
12674	12674	23 (l) A utility that has terminated any contract executed
12675	12675	24 under subsection (d-5) or (d-10) of Section 1-75 of the
12676	12676	25 Illinois Power Agency Act shall be entitled to recover any
12677	12677	26 remaining balance associated with the purchase of zero
12678	12678
12679	12679
12680	12680
12681	12681
12682	12682
12683	12683	SB2497 - 352 - LRB104 12224 JDS 22330 b
12684	12684
12685	12685
12686	12686	SB2497- 353 -LRB104 12224 JDS 22330 b SB2497 - 353 - LRB104 12224 JDS 22330 b
12687	12687	SB2497 - 353 - LRB104 12224 JDS 22330 b
12688	12688	1 emission credits prior to such termination, and such utility
12689	12689	2 shall also apply a credit to its retail customer bills in the
12690	12690	3 event of any over-collection.
12691	12691	4 (m)(1) An electric utility that recovers its costs of
12692	12692	5 procuring zero emission credits from zero emission facilities
12693	12693	6 through a cents-per-kilowatthour charge under subsection (k)
12694	12694	7 of this Section shall be subject to the requirements of this
12695	12695	8 subsection (m). Notwithstanding anything to the contrary, such
12696	12696	9 electric utility shall, beginning on April 30, 2018, and each
12697	12697	10 April 30 thereafter until April 30, 2026, calculate whether
12698	12698	11 any reduction must be applied to such cents-per-kilowatthour
12699	12699	12 charge that is paid by retail customers of the electric
12700	12700	13 utility that have opted out of subsections (a) through (j) of
12701	12701	14 Section 8-103B of this Act under subsection (l) of Section
12702	12702	15 8-103B. Such charge shall be reduced for such customers for
12703	12703	16 the next delivery year commencing on June 1 based on the amount
12704	12704	17 necessary, if any, to limit the annual estimated average net
12705	12705	18 increase for the prior calendar year due to the future energy
12706	12706	19 investment costs to no more than 1.3% of 5.98 cents per
12707	12707	20 kilowatt-hour, which is the average amount paid per
12708	12708	21 kilowatthour for electric service during the year ending
12709	12709	22 December 31, 2015 by Illinois industrial retail customers, as
12710	12710	23 reported to the Edison Electric Institute.
12711	12711	24 The calculations required by this subsection (m) shall be
12712	12712	25 made only once for each year, and no subsequent rate impact
12713	12713	26 determinations shall be made.
12714	12714
12715	12715
12716	12716
12717	12717
12718	12718
12719	12719	SB2497 - 353 - LRB104 12224 JDS 22330 b
12720	12720
12721	12721
12722	12722	SB2497- 354 -LRB104 12224 JDS 22330 b SB2497 - 354 - LRB104 12224 JDS 22330 b
12723	12723	SB2497 - 354 - LRB104 12224 JDS 22330 b
12724	12724	1 (2) For purposes of this Section, "future energy
12725	12725	2 investment costs" shall be calculated by subtracting the
12726	12726	3 cents-per-kilowatthour charge identified in subparagraph (A)
12727	12727	4 of this paragraph (2) from the sum of the
12728	12728	5 cents-per-kilowatthour charges identified in subparagraph (B)
12729	12729	6 of this paragraph (2):
12730	12730	7 (A) The cents-per-kilowatthour charge identified in
12731	12731	8 the electric utility's tariff placed into effect under
12732	12732	9 Section 8-103 of the Public Utilities Act that, on
12733	12733	10 December 1, 2016, was applicable to those retail customers
12734	12734	11 that have opted out of subsections (a) through (j) of
12735	12735	12 Section 8-103B of this Act under subsection (l) of Section
12736	12736	13 8-103B.
12737	12737	14 (B) The sum of the following cents-per-kilowatthour
12738	12738	15 charges applicable to those retail customers that have
12739	12739	16 opted out of subsections (a) through (j) of Section 8-103B
12740	12740	17 of this Act under subsection (l) of Section 8-103B,
12741	12741	18 provided that if one or more of the following charges has
12742	12742	19 been in effect and applied to such customers for more than
12743	12743	20 one calendar year, then each charge shall be equal to the
12744	12744	21 average of the charges applied over a period that
12745	12745	22 commences with the calendar year ending December 31, 2017
12746	12746	23 and ends with the most recently completed calendar year
12747	12747	24 prior to the calculation required by this subsection (m):
12748	12748	25 (i) the cents-per-kilowatthour charge to recover
12749	12749	26 the costs incurred by the utility under subsection
12750	12750
12751	12751
12752	12752
12753	12753
12754	12754
12755	12755	SB2497 - 354 - LRB104 12224 JDS 22330 b
12756	12756
12757	12757
12758	12758	SB2497- 355 -LRB104 12224 JDS 22330 b SB2497 - 355 - LRB104 12224 JDS 22330 b
12759	12759	SB2497 - 355 - LRB104 12224 JDS 22330 b
12760	12760	1 (d-5) of Section 1-75 of the Illinois Power Agency
12761	12761	2 Act, adjusted for any reductions required under this
12762	12762	3 subsection (m); and
12763	12763	4 (ii) the cents-per-kilowatthour charge to recover
12764	12764	5 the costs incurred by the utility under Section
12765	12765	6 16-107.6 of the Public Utilities Act.
12766	12766	7 If no charge was applied for a given calendar year
12767	12767	8 under item (i) or (ii) of this subparagraph (B), then the
12768	12768	9 value of the charge for that year shall be zero.
12769	12769	10 (3) If a reduction is required by the calculation
12770	12770	11 performed under this subsection (m), then the amount of the
12771	12771	12 reduction shall be multiplied by the number of years reflected
12772	12772	13 in the averages calculated under subparagraph (B) of paragraph
12773	12773	14 (2) of this subsection (m). Such reduction shall be applied to
12774	12774	15 the cents-per-kilowatthour charge that is applicable to those
12775	12775	16 retail customers that have opted out of subsections (a)
12776	12776	17 through (j) of Section 8-103B of this Act under subsection (l)
12777	12777	18 of Section 8-103B beginning with the next delivery year
12778	12778	19 commencing after the date of the calculation required by this
12779	12779	20 subsection (m).
12780	12780	21 (4) The electric utility shall file a notice with the
12781	12781	22 Commission on May 1 of 2018 and each May 1 thereafter until May
12782	12782	23 1, 2026 containing the reduction, if any, which must be
12783	12783	24 applied for the delivery year which begins in the year of the
12784	12784	25 filing. The notice shall contain the calculations made
12785	12785	26 pursuant to this Section. By October 1 of each year beginning
12786	12786
12787	12787
12788	12788
12789	12789
12790	12790
12791	12791	SB2497 - 355 - LRB104 12224 JDS 22330 b
12792	12792
12793	12793
12794	12794	SB2497- 356 -LRB104 12224 JDS 22330 b SB2497 - 356 - LRB104 12224 JDS 22330 b
12795	12795	SB2497 - 356 - LRB104 12224 JDS 22330 b
12796	12796	1 in 2018, each electric utility shall notify the Commission if
12797	12797	2 it appears, based on an estimate of the calculation required
12798	12798	3 in this subsection (m), that a reduction will be required in
12799	12799	4 the next year.
12800	12800	5 (Source: P.A. 102-662, eff. 9-15-21.)
12801	12801	6 (220 ILCS 5/16-111.5)
12802	12802	7 Sec. 16-111.5. Provisions relating to procurement.
12803	12803	8 (a) An electric utility that on December 31, 2005 served
12804	12804	9 at least 100,000 customers in Illinois shall procure power and
12805	12805	10 energy for its eligible retail customers in accordance with
12806	12806	11 the applicable provisions set forth in Section 1-75 of the
12807	12807	12 Illinois Power Agency Act and this Section. Beginning with the
12808	12808	13 delivery year commencing on June 1, 2024, an electric utility
12809	12809	14 serving over 100,000 customers in Illinois shall also procure
12810	12810	15 energy storage credits in accordance with the applicable
12811	12811	16 provisions of Sections 1-75 and 1-93 of the Illinois Power
12812	12812	17 Agency Act and this Section. Beginning with the delivery year
12813	12813	18 commencing on June 1, 2017, such electric utility shall also
12814	12814	19 procure zero emission credits from zero emission facilities in
12815	12815	20 accordance with the applicable provisions set forth in Section
12816	12816	21 1-75 of the Illinois Power Agency Act, and, for years
12817	12817	22 beginning on or after June 1, 2017, the utility shall procure
12818	12818	23 renewable energy resources in accordance with the applicable
12819	12819	24 provisions set forth in Section 1-75 of the Illinois Power
12820	12820	25 Agency Act and this Section. Beginning with the delivery year
12821	12821
12822	12822
12823	12823
12824	12824
12825	12825
12826	12826	SB2497 - 356 - LRB104 12224 JDS 22330 b
12827	12827
12828	12828
12829	12829	SB2497- 357 -LRB104 12224 JDS 22330 b SB2497 - 357 - LRB104 12224 JDS 22330 b
12830	12830	SB2497 - 357 - LRB104 12224 JDS 22330 b
12831	12831	1 commencing on June 1, 2022, an electric utility serving over
12832	12832	2 3,000,000 customers shall also procure carbon mitigation
12833	12833	3 credits from carbon-free energy resources in accordance with
12834	12834	4 the applicable provisions set forth in Section 1-75 of the
12835	12835	5 Illinois Power Agency Act and this Section. A small
12836	12836	6 multi-jurisdictional electric utility that on December 31,
12837	12837	7 2005 served less than 100,000 customers in Illinois may elect
12838	12838	8 to procure power and energy for all or a portion of its
12839	12839	9 eligible Illinois retail customers in accordance with the
12840	12840	10 applicable provisions set forth in this Section and Section
12841	12841	11 1-75 of the Illinois Power Agency Act. This Section shall not
12842	12842	12 apply to a small multi-jurisdictional utility until such time
12843	12843	13 as a small multi-jurisdictional utility requests the Illinois
12844	12844	14 Power Agency to prepare a procurement plan for its eligible
12845	12845	15 retail customers. "Eligible retail customers" for the purposes
12846	12846	16 of this Section means those retail customers that purchase
12847	12847	17 power and energy from the electric utility under fixed-price
12848	12848	18 bundled service tariffs, other than those retail customers
12849	12849	19 whose service is declared or deemed competitive under Section
12850	12850	20 16-113 and those other customer groups specified in this
12851	12851	21 Section, including self-generating customers, customers
12852	12852	22 electing hourly pricing, or those customers who are otherwise
12853	12853	23 ineligible for fixed-price bundled tariff service. For those
12854	12854	24 customers that are excluded from the procurement plan's
12855	12855	25 electric supply service requirements, and the utility shall
12856	12856	26 procure any supply requirements, including capacity, ancillary
12857	12857
12858	12858
12859	12859
12860	12860
12861	12861
12862	12862	SB2497 - 357 - LRB104 12224 JDS 22330 b
12863	12863
12864	12864
12865	12865	SB2497- 358 -LRB104 12224 JDS 22330 b SB2497 - 358 - LRB104 12224 JDS 22330 b
12866	12866	SB2497 - 358 - LRB104 12224 JDS 22330 b
12867	12867	1 services, and hourly priced energy, in the applicable markets
12868	12868	2 as needed to serve those customers, provided that the utility
12869	12869	3 may include in its procurement plan load requirements for the
12870	12870	4 load that is associated with those retail customers whose
12871	12871	5 service has been declared or deemed competitive pursuant to
12872	12872	6 Section 16-113 of this Act to the extent that those customers
12873	12873	7 are purchasing power and energy during one of the transition
12874	12874	8 periods identified in subsection (b) of Section 16-113 of this
12875	12875	9 Act.
12876	12876	10 (b) A procurement plan shall be prepared for each electric
12877	12877	11 utility consistent with the applicable requirements of the
12878	12878	12 Illinois Power Agency Act and this Section. For purposes of
12879	12879	13 this Section, Illinois electric utilities that are affiliated
12880	12880	14 by virtue of a common parent company are considered to be a
12881	12881	15 single electric utility. Small multi-jurisdictional utilities
12882	12882	16 may request a procurement plan for a portion of or all of its
12883	12883	17 Illinois load. Each procurement plan shall analyze the
12884	12884	18 projected balance of supply and demand for those retail
12885	12885	19 customers to be included in the plan's electric supply service
12886	12886	20 requirements over a 5-year period, with the first planning
12887	12887	21 year beginning on June 1 of the year following the year in
12888	12888	22 which the plan is filed. The plan shall specifically identify
12889	12889	23 the wholesale products to be procured following plan approval,
12890	12890	24 and shall follow all the requirements set forth in the Public
12891	12891	25 Utilities Act and all applicable State and federal laws,
12892	12892	26 statutes, rules, or regulations, as well as Commission orders.
12893	12893
12894	12894
12895	12895
12896	12896
12897	12897
12898	12898	SB2497 - 358 - LRB104 12224 JDS 22330 b
12899	12899
12900	12900
12901	12901	SB2497- 359 -LRB104 12224 JDS 22330 b SB2497 - 359 - LRB104 12224 JDS 22330 b
12902	12902	SB2497 - 359 - LRB104 12224 JDS 22330 b
12903	12903	1 Nothing in this Section precludes consideration of contracts
12904	12904	2 longer than 5 years and related forecast data. Unless
12905	12905	3 specified otherwise in this Section, in the procurement plan
12906	12906	4 or in the implementing tariff, any procurement occurring in
12907	12907	5 accordance with this plan shall be competitively bid through a
12908	12908	6 request for proposals process. Approval and implementation of
12909	12909	7 the procurement plan shall be subject to review and approval
12910	12910	8 by the Commission according to the provisions set forth in
12911	12911	9 this Section. A procurement plan shall include each of the
12912	12912	10 following components:
12913	12913	11 (1) Hourly load analysis. This analysis shall include:
12914	12914	12 (i) multi-year historical analysis of hourly
12915	12915	13 loads;
12916	12916	14 (ii) switching trends and competitive retail
12917	12917	15 market analysis;
12918	12918	16 (iii) known or projected changes to future loads;
12919	12919	17 and
12920	12920	18 (iv) growth forecasts by customer class; and .
12921	12921	19 (v) the impact of load reduction and peak load
12922	12922	20 reduction through programs authorized by Sections
12923	12923	21 16-107.9, 16-107.10, and 16-107.11.
12924	12924	22 (2) Analysis of the impact of any demand side and
12925	12925	23 renewable energy initiatives. This analysis shall include:
12926	12926	24 (i) the impact of demand response programs and
12927	12927	25 energy efficiency programs, both current and
12928	12928	26 projected; for small multi-jurisdictional utilities,
12929	12929
12930	12930
12931	12931
12932	12932
12933	12933
12934	12934	SB2497 - 359 - LRB104 12224 JDS 22330 b
12935	12935
12936	12936
12937	12937	SB2497- 360 -LRB104 12224 JDS 22330 b SB2497 - 360 - LRB104 12224 JDS 22330 b
12938	12938	SB2497 - 360 - LRB104 12224 JDS 22330 b
12939	12939	1 the impact of demand response and energy efficiency
12940	12940	2 programs approved pursuant to Section 8-408 of this
12941	12941	3 Act, both current and projected; and
12942	12942	4 (ii) supply side needs that are projected to be
12943	12943	5 offset by purchases of renewable energy resources, if
12944	12944	6 any.
12945	12945	7 (3) A plan for meeting the expected load requirements
12946	12946	8 that will not be met through preexisting contracts. This
12947	12947	9 plan shall include:
12948	12948	10 (i) definitions of the different Illinois retail
12949	12949	11 customer classes for which supply is being purchased;
12950	12950	12 (ii) the proposed mix of demand-response products
12951	12951	13 for which contracts will be executed during the next
12952	12952	14 year. For small multi-jurisdictional electric
12953	12953	15 utilities that on December 31, 2005 served fewer than
12954	12954	16 100,000 customers in Illinois, these shall be defined
12955	12955	17 as demand-response products offered in an energy
12956	12956	18 efficiency plan approved pursuant to Section 8-408 of
12957	12957	19 this Act. The cost-effective demand-response measures
12958	12958	20 shall be procured whenever the cost is lower than
12959	12959	21 procuring comparable capacity products, provided that
12960	12960	22 such products shall:
12961	12961	23 (A) be procured by a demand-response provider
12962	12962	24 from those retail customers included in the plan's
12963	12963	25 electric supply service requirements;
12964	12964	26 (B) at least satisfy the demand-response
12965	12965
12966	12966
12967	12967
12968	12968
12969	12969
12970	12970	SB2497 - 360 - LRB104 12224 JDS 22330 b
12971	12971
12972	12972
12973	12973	SB2497- 361 -LRB104 12224 JDS 22330 b SB2497 - 361 - LRB104 12224 JDS 22330 b
12974	12974	SB2497 - 361 - LRB104 12224 JDS 22330 b
12975	12975	1 requirements of the regional transmission
12976	12976	2 organization market in which the utility's service
12977	12977	3 territory is located, including, but not limited
12978	12978	4 to, any applicable capacity or dispatch
12979	12979	5 requirements;
12980	12980	6 (C) provide for customers' participation in
12981	12981	7 the stream of benefits produced by the
12982	12982	8 demand-response products;
12983	12983	9 (D) provide for reimbursement by the
12984	12984	10 demand-response provider of the utility for any
12985	12985	11 costs incurred as a result of the failure of the
12986	12986	12 supplier of such products to perform its
12987	12987	13 obligations thereunder; and
12988	12988	14 (E) meet the same credit requirements as apply
12989	12989	15 to suppliers of capacity, in the applicable
12990	12990	16 regional transmission organization market;
12991	12991	17 (iii) monthly forecasted system supply
12992	12992	18 requirements, including expected minimum, maximum, and
12993	12993	19 average values for the planning period;
12994	12994	20 (iv) the proposed mix and selection of standard
12995	12995	21 wholesale products for which contracts will be
12996	12996	22 executed during the next year, separately or in
12997	12997	23 combination, to meet that portion of its load
12998	12998	24 requirements not met through pre-existing contracts,
12999	12999	25 including but not limited to monthly 5 x 16 peak period
13000	13000	26 block energy, monthly off-peak wrap energy, monthly 7
13001	13001
13002	13002
13003	13003
13004	13004
13005	13005
13006	13006	SB2497 - 361 - LRB104 12224 JDS 22330 b
13007	13007
13008	13008
13009	13009	SB2497- 362 -LRB104 12224 JDS 22330 b SB2497 - 362 - LRB104 12224 JDS 22330 b
13010	13010	SB2497 - 362 - LRB104 12224 JDS 22330 b
13011	13011	1 x 24 energy, annual 5 x 16 energy, other standardized
13012	13012	2 energy or capacity products designed to provide
13013	13013	3 eligible retail customer benefits from commercially
13014	13014	4 deployed advanced technologies including but not
13015	13015	5 limited to high voltage direct current converter
13016	13016	6 stations, as such term is defined in Section 1-10 of
13017	13017	7 the Illinois Power Agency Act, whether or not such
13018	13018	8 product is currently available in wholesale markets,
13019	13019	9 annual off-peak wrap energy, annual 7 x 24 energy,
13020	13020	10 monthly capacity, annual capacity, peak load capacity
13021	13021	11 obligations, capacity purchase plan, and ancillary
13022	13022	12 services;
13023	13023	13 (v) proposed term structures for each wholesale
13024	13024	14 product type included in the proposed procurement plan
13025	13025	15 portfolio of products; and
13026	13026	16 (vi) an assessment of the price risk, load
13027	13027	17 uncertainty, and other factors that are associated
13028	13028	18 with the proposed procurement plan; this assessment,
13029	13029	19 to the extent possible, shall include an analysis of
13030	13030	20 the following factors: contract terms, time frames for
13031	13031	21 securing products or services, fuel costs, weather
13032	13032	22 patterns, transmission costs, market conditions, and
13033	13033	23 the governmental regulatory environment; the proposed
13034	13034	24 procurement plan shall also identify alternatives for
13035	13035	25 those portfolio measures that are identified as having
13036	13036	26 significant price risk and mitigation in the form of
13037	13037
13038	13038
13039	13039
13040	13040
13041	13041
13042	13042	SB2497 - 362 - LRB104 12224 JDS 22330 b
13043	13043
13044	13044
13045	13045	SB2497- 363 -LRB104 12224 JDS 22330 b SB2497 - 363 - LRB104 12224 JDS 22330 b
13046	13046	SB2497 - 363 - LRB104 12224 JDS 22330 b
13047	13047	1 additional retail customer and ratepayer price,
13048	13048	2 reliability, and environmental benefits from
13049	13049	3 standardized energy products delivered from
13050	13050	4 commercially deployed advanced technologies,
13051	13051	5 including, but not limited to, high voltage direct
13052	13052	6 current converter stations, as such term is defined in
13053	13053	7 Section 1-10 of the Illinois Power Agency Act, whether
13054	13054	8 or not such product is currently available in
13055	13055	9 wholesale markets.
13056	13056	10 (4) Proposed procedures for balancing loads. The
13057	13057	11 procurement plan shall include, for load requirements
13058	13058	12 included in the procurement plan, the process for (i)
13059	13059	13 hourly balancing of supply and demand and (ii) the
13060	13060	14 criteria for portfolio re-balancing in the event of
13061	13061	15 significant shifts in load.
13062	13062	16 (5) Long-Term Renewable Resources Procurement Plan.
13063	13063	17 The Agency shall prepare a long-term renewable resources
13064	13064	18 procurement plan for the procurement of renewable energy
13065	13065	19 credits under Sections 1-56 and 1-75 of the Illinois Power
13066	13066	20 Agency Act for delivery beginning in the 2017 delivery
13067	13067	21 year.
13068	13068	22 (i) The initial long-term renewable resources
13069	13069	23 procurement plan and all subsequent revisions shall be
13070	13070	24 subject to review and approval by the Commission. For
13071	13071	25 the purposes of this Section, "delivery year" has the
13072	13072	26 same meaning as in Section 1-10 of the Illinois Power
13073	13073
13074	13074
13075	13075
13076	13076
13077	13077
13078	13078	SB2497 - 363 - LRB104 12224 JDS 22330 b
13079	13079
13080	13080
13081	13081	SB2497- 364 -LRB104 12224 JDS 22330 b SB2497 - 364 - LRB104 12224 JDS 22330 b
13082	13082	SB2497 - 364 - LRB104 12224 JDS 22330 b
13083	13083	1 Agency Act. For purposes of this Section, "Agency"
13084	13084	2 shall mean the Illinois Power Agency.
13085	13085	3 (ii) The long-term renewable resources planning
13086	13086	4 process shall be conducted as follows:
13087	13087	5 (A) Electric utilities shall provide a range
13088	13088	6 of load forecasts to the Illinois Power Agency
13089	13089	7 within 45 days of the Agency's request for
13090	13090	8 forecasts, which request shall specify the length
13091	13091	9 and conditions for the forecasts including, but
13092	13092	10 not limited to, the quantity of distributed
13093	13093	11 generation expected to be interconnected for each
13094	13094	12 year.
13095	13095	13 (B) The Agency shall publish for comment the
13096	13096	14 initial long-term renewable resources procurement
13097	13097	15 plan no later than 120 days after the effective
13098	13098	16 date of this amendatory Act of the 99th General
13099	13099	17 Assembly and shall review, and may revise, the
13100	13100	18 plan at least every 2 years thereafter. To the
13101	13101	19 extent practicable, the Agency shall review and
13102	13102	20 propose any revisions to the long-term renewable
13103	13103	21 energy resources procurement plan in conjunction
13104	13104	22 with the Agency's other planning and approval
13105	13105	23 processes conducted under this Section. The
13106	13106	24 initial long-term renewable resources procurement
13107	13107	25 plan shall:
13108	13108	26 (aa) Identify the procurement programs and
13109	13109
13110	13110
13111	13111
13112	13112
13113	13113
13114	13114	SB2497 - 364 - LRB104 12224 JDS 22330 b
13115	13115
13116	13116
13117	13117	SB2497- 365 -LRB104 12224 JDS 22330 b SB2497 - 365 - LRB104 12224 JDS 22330 b
13118	13118	SB2497 - 365 - LRB104 12224 JDS 22330 b
13119	13119	1 competitive procurement events consistent with
13120	13120	2 the applicable requirements of the Illinois
13121	13121	3 Power Agency Act and shall be designed to
13122	13122	4 achieve the goals set forth in subsection (c)
13123	13123	5 of Section 1-75 of that Act.
13124	13124	6 (bb) Include a schedule for procurements
13125	13125	7 for renewable energy credits from
13126	13126	8 utility-scale wind projects, utility-scale
13127	13127	9 solar projects, and brownfield site
13128	13128	10 photovoltaic projects consistent with
13129	13129	11 subparagraph (G) of paragraph (1) of
13130	13130	12 subsection (c) of Section 1-75 of the Illinois
13131	13131	13 Power Agency Act.
13132	13132	14 (cc) Identify the process whereby the
13133	13133	15 Agency will submit to the Commission for
13134	13134	16 review and approval the proposed contracts to
13135	13135	17 implement the programs required by such plan.
13136	13136	18 Copies of the initial long-term renewable
13137	13137	19 resources procurement plan and all subsequent
13138	13138	20 revisions shall be posted and made publicly
13139	13139	21 available on the Agency's and Commission's
13140	13140	22 websites, and copies shall also be provided to
13141	13141	23 each affected electric utility. An affected
13142	13142	24 utility and other interested parties shall have 45
13143	13143	25 days following the date of posting to provide
13144	13144	26 comment to the Agency on the initial long-term
13145	13145
13146	13146
13147	13147
13148	13148
13149	13149
13150	13150	SB2497 - 365 - LRB104 12224 JDS 22330 b
13151	13151
13152	13152
13153	13153	SB2497- 366 -LRB104 12224 JDS 22330 b SB2497 - 366 - LRB104 12224 JDS 22330 b
13154	13154	SB2497 - 366 - LRB104 12224 JDS 22330 b
13155	13155	1 renewable resources procurement plan and all
13156	13156	2 subsequent revisions. All comments submitted to
13157	13157	3 the Agency shall be specific, supported by data or
13158	13158	4 other detailed analyses, and, if objecting to all
13159	13159	5 or a portion of the procurement plan, accompanied
13160	13160	6 by specific alternative wording or proposals. All
13161	13161	7 comments shall be posted on the Agency's and
13162	13162	8 Commission's websites. During this 45-day comment
13163	13163	9 period, the Agency shall hold at least one public
13164	13164	10 hearing within each utility's service area that is
13165	13165	11 subject to the requirements of this paragraph (5)
13166	13166	12 for the purpose of receiving public comment.
13167	13167	13 Within 21 days following the end of the 45-day
13168	13168	14 review period, the Agency may revise the long-term
13169	13169	15 renewable resources procurement plan based on the
13170	13170	16 comments received and shall file the plan with the
13171	13171	17 Commission for review and approval.
13172	13172	18 (C) Within 14 days after the filing of the
13173	13173	19 initial long-term renewable resources procurement
13174	13174	20 plan or any subsequent revisions, any person
13175	13175	21 objecting to the plan may file an objection with
13176	13176	22 the Commission. Within 21 days after the filing of
13177	13177	23 the plan, the Commission shall determine whether a
13178	13178	24 hearing is necessary. The Commission shall enter
13179	13179	25 its order confirming or modifying the initial
13180	13180	26 long-term renewable resources procurement plan or
13181	13181
13182	13182
13183	13183
13184	13184
13185	13185
13186	13186	SB2497 - 366 - LRB104 12224 JDS 22330 b
13187	13187
13188	13188
13189	13189	SB2497- 367 -LRB104 12224 JDS 22330 b SB2497 - 367 - LRB104 12224 JDS 22330 b
13190	13190	SB2497 - 367 - LRB104 12224 JDS 22330 b
13191	13191	1 any subsequent revisions within 120 days after the
13192	13192	2 filing of the plan by the Illinois Power Agency.
13193	13193	3 (D) The Commission shall approve the initial
13194	13194	4 long-term renewable resources procurement plan and
13195	13195	5 any subsequent revisions, including expressly the
13196	13196	6 forecast used in the plan and taking into account
13197	13197	7 that funding will be limited to the amount of
13198	13198	8 revenues actually collected by the utilities, if
13199	13199	9 the Commission determines that the plan will
13200	13200	10 reasonably and prudently accomplish the
13201	13201	11 requirements of Section 1-56 and subsection (c) of
13202	13202	12 Section 1-75 of the Illinois Power Agency Act. The
13203	13203	13 Commission shall also approve the process for the
13204	13204	14 submission, review, and approval of the proposed
13205	13205	15 contracts to procure renewable energy credits or
13206	13206	16 implement the programs authorized by the
13207	13207	17 Commission pursuant to a long-term renewable
13208	13208	18 resources procurement plan approved under this
13209	13209	19 Section.
13210	13210	20 In approving any long-term renewable resources
13211	13211	21 procurement plan after the effective date of this
13212	13212	22 amendatory Act of the 102nd General Assembly, the
13213	13213	23 Commission shall approve or modify the Agency's
13214	13214	24 proposal for minimum equity standards pursuant to
13215	13215	25 subsection (c-10) of Section 1-75 of the Illinois
13216	13216	26 Power Agency Act. The Commission shall consider
13217	13217
13218	13218
13219	13219
13220	13220
13221	13221
13222	13222	SB2497 - 367 - LRB104 12224 JDS 22330 b
13223	13223
13224	13224
13225	13225	SB2497- 368 -LRB104 12224 JDS 22330 b SB2497 - 368 - LRB104 12224 JDS 22330 b
13226	13226	SB2497 - 368 - LRB104 12224 JDS 22330 b
13227	13227	1 any analysis performed by the Agency in developing
13228	13228	2 its proposal, including past performance,
13229	13229	3 availability of equity eligible contractors, and
13230	13230	4 availability of equity eligible persons at the
13231	13231	5 time the long-term renewable resources procurement
13232	13232	6 plan is approved.
13233	13233	7 (iii) The Agency or third parties contracted by
13234	13234	8 the Agency shall implement all programs authorized by
13235	13235	9 the Commission in an approved long-term renewable
13236	13236	10 resources procurement plan without further review and
13237	13237	11 approval by the Commission. Third parties shall not
13238	13238	12 begin implementing any programs or receive any payment
13239	13239	13 under this Section until the Commission has approved
13240	13240	14 the contract or contracts under the process authorized
13241	13241	15 by the Commission in item (D) of subparagraph (ii) of
13242	13242	16 paragraph (5) of this subsection (b) and the third
13243	13243	17 party and the Agency or utility, as applicable, have
13244	13244	18 executed the contract. For those renewable energy
13245	13245	19 credits subject to procurement through a competitive
13246	13246	20 bid process under the plan or under the initial
13247	13247	21 forward procurements for wind and solar resources
13248	13248	22 described in subparagraph (G) of paragraph (1) of
13249	13249	23 subsection (c) of Section 1-75 of the Illinois Power
13250	13250	24 Agency Act, the Agency shall follow the procurement
13251	13251	25 process specified in the provisions relating to
13252	13252	26 electricity procurement in subsections (e) through (i)
13253	13253
13254	13254
13255	13255
13256	13256
13257	13257
13258	13258	SB2497 - 368 - LRB104 12224 JDS 22330 b
13259	13259
13260	13260
13261	13261	SB2497- 369 -LRB104 12224 JDS 22330 b SB2497 - 369 - LRB104 12224 JDS 22330 b
13262	13262	SB2497 - 369 - LRB104 12224 JDS 22330 b
13263	13263	1 of this Section.
13264	13264	2 (iv) An electric utility shall recover its costs
13265	13265	3 associated with the procurement of renewable energy
13266	13266	4 credits under this Section and pursuant to subsection
13267	13267	5 (c-5) of Section 1-75 of the Illinois Power Agency Act
13268	13268	6 through an automatic adjustment clause tariff under
13269	13269	7 subsection (k) or a tariff pursuant to subsection
13270	13270	8 (i-5), as applicable, of Section 16-108 of this Act. A
13271	13271	9 utility shall not be required to advance any payment
13272	13272	10 or pay any amounts under this Section that exceed the
13273	13273	11 actual amount of revenues collected by the utility
13274	13274	12 under paragraph (6) of subsection (c) of Section 1-75
13275	13275	13 of the Illinois Power Agency Act, subsection (c-5) of
13276	13276	14 Section 1-75 of the Illinois Power Agency Act, and
13277	13277	15 subsection (k) or subsection (i-5), as applicable, of
13278	13278	16 Section 16-108 of this Act, and contracts executed
13279	13279	17 under this Section shall expressly incorporate this
13280	13280	18 limitation.
13281	13281	19 (v) For the public interest, safety, and welfare,
13282	13282	20 the Agency and the Commission may adopt rules to carry
13283	13283	21 out the provisions of this Section on an emergency
13284	13284	22 basis immediately following the effective date of this
13285	13285	23 amendatory Act of the 99th General Assembly.
13286	13286	24 (vi) On or before July 1 of each year, the
13287	13287	25 Commission shall hold an informal hearing for the
13288	13288	26 purpose of receiving comments on the prior year's
13289	13289
13290	13290
13291	13291
13292	13292
13293	13293
13294	13294	SB2497 - 369 - LRB104 12224 JDS 22330 b
13295	13295
13296	13296
13297	13297	SB2497- 370 -LRB104 12224 JDS 22330 b SB2497 - 370 - LRB104 12224 JDS 22330 b
13298	13298	SB2497 - 370 - LRB104 12224 JDS 22330 b
13299	13299	1 procurement process and any recommendations for
13300	13300	2 change.
13301	13301	3 (6) Long-term energy storage resources procurement
13302	13302	4 plan. The Agency shall prepare an energy storage resources
13303	13303	5 procurement plan for the procurement of energy storage
13304	13304	6 credits in compliance with this Section and Section 1-93
13305	13305	7 of the Illinois Power Agency Act.
13306	13306	8 (i) The initial energy storage resources
13307	13307	9 procurement plan and all subsequent revisions shall be
13308	13308	10 subject to review and approval by the Commission. For
13309	13309	11 purposes of this Section, "delivery year" has the same
13310	13310	12 meaning as used in Section 1-10 of the Illinois Power
13311	13311	13 Agency Act. In this paragraph, "Agency" means the
13312	13312	14 Illinois Power Agency.
13313	13313	15 (ii) The energy storage resources planning process
13314	13314	16 shall be conducted as follows:
13315	13315	17 (A) The Agency shall publish for comment the
13316	13316	18 initial energy storage resources procurement plan
13317	13317	19 no later than 180 days after the effective date of
13318	13318	20 this amendatory Act of the 104th General Assembly
13319	13319	21 and shall review and may revise the plan at least
13320	13320	22 every 2 years thereafter. To the extent
13321	13321	23 practicable, the Agency shall review and propose
13322	13322	24 any revisions to the energy storage resources
13323	13323	25 procurement plan in conjunction with the Agency's
13324	13324	26 other planning and approval processes conducted
13325	13325
13326	13326
13327	13327
13328	13328
13329	13329
13330	13330	SB2497 - 370 - LRB104 12224 JDS 22330 b
13331	13331
13332	13332
13333	13333	SB2497- 371 -LRB104 12224 JDS 22330 b SB2497 - 371 - LRB104 12224 JDS 22330 b
13334	13334	SB2497 - 371 - LRB104 12224 JDS 22330 b
13335	13335	1 under this Section. The initial energy storage
13336	13336	2 resources procurement plan shall:
13337	13337	3 (aa) include a schedule for procurements
13338	13338	4 for energy storage credits from qualified
13339	13339	5 energy storage systems consistent with Section
13340	13340	6 1-93 of the Illinois Power Agency Act,
13341	13341	7 including proposals for allocation between
13342	13342	8 indexed credits and tolling agreements;
13343	13343	9 (bb) identify the process whereby the
13344	13344	10 Agency will submit to the Commission for
13345	13345	11 review and approval the proposed contracts to
13346	13346	12 implement the programs required by the plan.
13347	13347	13 Copies of the initial energy storage resources
13348	13348	14 procurement plan and all subsequent revisions
13349	13349	15 shall be posted and made publicly available on
13350	13350	16 the Agency's and Commission's websites, and
13351	13351	17 copies shall also be provided to each affected
13352	13352	18 electric utility. An affected utility and
13353	13353	19 other interested parties shall have 45 days
13354	13354	20 following the date of posting to provide
13355	13355	21 comment to the Agency on the initial energy
13356	13356	22 storage resources procurement plan and all
13357	13357	23 subsequent revisions. All comments shall be
13358	13358	24 posted on the Agency's and Commission's
13359	13359	25 websites; and
13360	13360	26 (cc) upon solicitation from stakeholders,
13361	13361
13362	13362
13363	13363
13364	13364
13365	13365
13366	13366	SB2497 - 371 - LRB104 12224 JDS 22330 b
13367	13367
13368	13368
13369	13369	SB2497- 372 -LRB104 12224 JDS 22330 b SB2497 - 372 - LRB104 12224 JDS 22330 b
13370	13370	SB2497 - 372 - LRB104 12224 JDS 22330 b
13371	13371	1 consider additional procurement approaches
13372	13372	2 that would result in the electric utilities
13373	13373	3 contracting for energy storage to achieve the
13374	13374	4 requirements described in subsection (a); and
13375	13375	5 (B) The Commission shall approve the initial
13376	13376	6 energy storage resources procurement plan and any
13377	13377	7 subsequent revisions if the Commission determines
13378	13378	8 that the plan will reasonably and prudently
13379	13379	9 accomplish the requirements of Section 1-93 of the
13380	13380	10 Illinois Power Agency Act. The Commission shall
13381	13381	11 also approve the process for the submission,
13382	13382	12 review, and approval of the proposed contracts to
13383	13383	13 procure energy storage credits or implement the
13384	13384	14 programs authorized by the Commission pursuant to
13385	13385	15 a long-term energy storage resources procurement
13386	13386	16 plan approved under this Section.
13387	13387	17 In approving any long-term energy storage
13388	13388	18 procurement plan after the effective date of this
13389	13389	19 amendatory Act of the 104th General Assembly, the
13390	13390	20 Commission shall approve or modify the Agency's
13391	13391	21 proposal for minimum equity standards under
13392	13392	22 subsection (c-10) of Section 1-75 of the Illinois
13393	13393	23 Power Agency Act. The Commission shall consider
13394	13394	24 any analysis performed by the Agency in developing
13395	13395	25 its proposal, including past performance,
13396	13396	26 availability of equity eligible contractors, and
13397	13397
13398	13398
13399	13399
13400	13400
13401	13401
13402	13402	SB2497 - 372 - LRB104 12224 JDS 22330 b
13403	13403
13404	13404
13405	13405	SB2497- 373 -LRB104 12224 JDS 22330 b SB2497 - 373 - LRB104 12224 JDS 22330 b
13406	13406	SB2497 - 373 - LRB104 12224 JDS 22330 b
13407	13407	1 availability of equity eligible persons at the
13408	13408	2 time the long-term renewable resources procurement
13409	13409	3 plan is approved.
13410	13410	4 (iii) The Agency or third parties contracted by
13411	13411	5 the Agency shall implement all programs authorized by
13412	13412	6 the Commission in an approved long-term energy storage
13413	13413	7 procurement plan without further review and approval
13414	13414	8 by the Commission. Third parties shall not begin
13415	13415	9 implementing any programs or receive any payment under
13416	13416	10 this Section until the Commission has approved the
13417	13417	11 long-term storage contract.
13418	13418	12 (iv) An electric utility shall recover its costs
13419	13419	13 associated with the procurement of energy storage
13420	13420	14 credits under this Section and pursuant to Section
13421	13421	15 1-93 of the Illinois Power Agency Act through an
13422	13422	16 automatic adjustment clause tariff under subsection
13423	13423	17 (k) or a tariff under subsection (i-5), as applicable,
13424	13424	18 of Section 16-108.
13425	13425	19 (b-5) An electric utility that as of January 1, 2019
13426	13426	20 served more than 300,000 retail customers in this State shall
13427	13427	21 purchase renewable energy credits from new renewable energy
13428	13428	22 facilities constructed at or adjacent to the sites of
13429	13429	23 coal-fueled electric generating facilities in this State in
13430	13430	24 accordance with subsection (c-5) of Section 1-75 of the
13431	13431	25 Illinois Power Agency Act. Except as expressly provided in
13432	13432	26 this Section, the plans and procedures for such procurements
13433	13433
13434	13434
13435	13435
13436	13436
13437	13437
13438	13438	SB2497 - 373 - LRB104 12224 JDS 22330 b
13439	13439
13440	13440
13441	13441	SB2497- 374 -LRB104 12224 JDS 22330 b SB2497 - 374 - LRB104 12224 JDS 22330 b
13442	13442	SB2497 - 374 - LRB104 12224 JDS 22330 b
13443	13443	1 shall not be included in the procurement plans provided for in
13444	13444	2 this Section, but rather shall be conducted and implemented
13445	13445	3 solely in accordance with subsection (c-5) of Section 1-75 of
13446	13446	4 the Illinois Power Agency Act.
13447	13447	5 (c) The provisions of this subsection (c) shall not apply
13448	13448	6 to procurements conducted pursuant to subsection (c-5) of
13449	13449	7 Section 1-75 of the Illinois Power Agency Act. However, the
13450	13450	8 Agency may retain a procurement administrator to assist the
13451	13451	9 Agency in planning and carrying out the procurement events and
13452	13452	10 implementing the other requirements specified in such
13453	13453	11 subsection (c-5) of Section 1-75 of the Illinois Power Agency
13454	13454	12 Act, with the costs incurred by the Agency for the procurement
13455	13455	13 administrator to be recovered through fees charged to
13456	13456	14 applicants for selection to sell and deliver renewable energy
13457	13457	15 credits to electric utilities pursuant to subsection (c-5) of
13458	13458	16 Section 1-75 of the Illinois Power Agency Act. The procurement
13459	13459	17 process set forth in Section 1-75 of the Illinois Power Agency
13460	13460	18 Act and subsection (e) of this Section shall be administered
13461	13461	19 by a procurement administrator and monitored by a procurement
13462	13462	20 monitor.
13463	13463	21 (1) The procurement administrator shall:
13464	13464	22 (i) design the final procurement process in
13465	13465	23 accordance with Section 1-75 of the Illinois Power
13466	13466	24 Agency Act and subsection (e) of this Section
13467	13467	25 following Commission approval of the procurement plan;
13468	13468	26 (ii) develop benchmarks in accordance with
13469	13469
13470	13470
13471	13471
13472	13472
13473	13473
13474	13474	SB2497 - 374 - LRB104 12224 JDS 22330 b
13475	13475
13476	13476
13477	13477	SB2497- 375 -LRB104 12224 JDS 22330 b SB2497 - 375 - LRB104 12224 JDS 22330 b
13478	13478	SB2497 - 375 - LRB104 12224 JDS 22330 b
13479	13479	1 subsection (e)(3) to be used to evaluate bids; these
13480	13480	2 benchmarks shall be submitted to the Commission for
13481	13481	3 review and approval on a confidential basis prior to
13482	13482	4 the procurement event;
13483	13483	5 (iii) serve as the interface between the electric
13484	13484	6 utility and suppliers;
13485	13485	7 (iv) manage the bidder pre-qualification and
13486	13486	8 registration process;
13487	13487	9 (v) obtain the electric utilities' agreement to
13488	13488	10 the final form of all supply contracts and credit
13489	13489	11 collateral agreements;
13490	13490	12 (vi) administer the request for proposals process;
13491	13491	13 (vii) have the discretion to negotiate to
13492	13492	14 determine whether bidders are willing to lower the
13493	13493	15 price of bids that meet the benchmarks approved by the
13494	13494	16 Commission; any post-bid negotiations with bidders
13495	13495	17 shall be limited to price only and shall be completed
13496	13496	18 within 24 hours after opening the sealed bids and
13497	13497	19 shall be conducted in a fair and unbiased manner; in
13498	13498	20 conducting the negotiations, there shall be no
13499	13499	21 disclosure of any information derived from proposals
13500	13500	22 submitted by competing bidders; if information is
13501	13501	23 disclosed to any bidder, it shall be provided to all
13502	13502	24 competing bidders;
13503	13503	25 (viii) maintain confidentiality of supplier and
13504	13504	26 bidding information in a manner consistent with all
13505	13505
13506	13506
13507	13507
13508	13508
13509	13509
13510	13510	SB2497 - 375 - LRB104 12224 JDS 22330 b
13511	13511
13512	13512
13513	13513	SB2497- 376 -LRB104 12224 JDS 22330 b SB2497 - 376 - LRB104 12224 JDS 22330 b
13514	13514	SB2497 - 376 - LRB104 12224 JDS 22330 b
13515	13515	1 applicable laws, rules, regulations, and tariffs;
13516	13516	2 (ix) submit a confidential report to the
13517	13517	3 Commission recommending acceptance or rejection of
13518	13518	4 bids;
13519	13519	5 (x) notify the utility of contract counterparties
13520	13520	6 and contract specifics; and
13521	13521	7 (xi) administer related contingency procurement
13522	13522	8 events.
13523	13523	9 (2) The procurement monitor, who shall be retained by
13524	13524	10 the Commission, shall:
13525	13525	11 (i) monitor interactions among the procurement
13526	13526	12 administrator, suppliers, and utility;
13527	13527	13 (ii) monitor and report to the Commission on the
13528	13528	14 progress of the procurement process;
13529	13529	15 (iii) provide an independent confidential report
13530	13530	16 to the Commission regarding the results of the
13531	13531	17 procurement event;
13532	13532	18 (iv) assess compliance with the procurement plans
13533	13533	19 approved by the Commission for each utility that on
13534	13534	20 December 31, 2005 provided electric service to at
13535	13535	21 least 100,000 customers in Illinois and for each small
13536	13536	22 multi-jurisdictional utility that on December 31, 2005
13537	13537	23 served less than 100,000 customers in Illinois;
13538	13538	24 (v) preserve the confidentiality of supplier and
13539	13539	25 bidding information in a manner consistent with all
13540	13540	26 applicable laws, rules, regulations, and tariffs;
13541	13541
13542	13542
13543	13543
13544	13544
13545	13545
13546	13546	SB2497 - 376 - LRB104 12224 JDS 22330 b
13547	13547
13548	13548
13549	13549	SB2497- 377 -LRB104 12224 JDS 22330 b SB2497 - 377 - LRB104 12224 JDS 22330 b
13550	13550	SB2497 - 377 - LRB104 12224 JDS 22330 b
13551	13551	1 (vi) provide expert advice to the Commission and
13552	13552	2 consult with the procurement administrator regarding
13553	13553	3 issues related to procurement process design, rules,
13554	13554	4 protocols, and policy-related matters; and
13555	13555	5 (vii) consult with the procurement administrator
13556	13556	6 regarding the development and use of benchmark
13557	13557	7 criteria, standard form contracts, credit policies,
13558	13558	8 and bid documents.
13559	13559	9 (d) Except as provided in subsection (j), the planning
13560	13560	10 process shall be conducted as follows:
13561	13561	11 (1) Beginning in 2008, each Illinois utility procuring
13562	13562	12 power pursuant to this Section shall annually provide a
13563	13563	13 range of load forecasts to the Illinois Power Agency by
13564	13564	14 July 15 of each year, or such other date as may be required
13565	13565	15 by the Commission or Agency. The load forecasts shall
13566	13566	16 cover the 5-year procurement planning period for the next
13567	13567	17 procurement plan and shall include hourly data
13568	13568	18 representing a high-load, low-load, and expected-load
13569	13569	19 scenario for the load of those retail customers included
13570	13570	20 in the plan's electric supply service requirements. The
13571	13571	21 utility shall provide supporting data and assumptions for
13572	13572	22 each of the scenarios.
13573	13573	23 (2) Beginning in 2008, the Illinois Power Agency shall
13574	13574	24 prepare a procurement plan by August 15th of each year, or
13575	13575	25 such other date as may be required by the Commission. The
13576	13576	26 procurement plan shall identify the portfolio of
13577	13577
13578	13578
13579	13579
13580	13580
13581	13581
13582	13582	SB2497 - 377 - LRB104 12224 JDS 22330 b
13583	13583
13584	13584
13585	13585	SB2497- 378 -LRB104 12224 JDS 22330 b SB2497 - 378 - LRB104 12224 JDS 22330 b
13586	13586	SB2497 - 378 - LRB104 12224 JDS 22330 b
13587	13587	1 demand-response and power and energy products to be
13588	13588	2 procured. Cost-effective demand-response measures shall be
13589	13589	3 procured as set forth in item (iii) of subsection (b) of
13590	13590	4 this Section. Copies of the procurement plan shall be
13591	13591	5 posted and made publicly available on the Agency's and
13592	13592	6 Commission's websites, and copies shall also be provided
13593	13593	7 to each affected electric utility. An affected utility
13594	13594	8 shall have 30 days following the date of posting to
13595	13595	9 provide comment to the Agency on the procurement plan.
13596	13596	10 Other interested entities also may comment on the
13597	13597	11 procurement plan. All comments submitted to the Agency
13598	13598	12 shall be specific, supported by data or other detailed
13599	13599	13 analyses, and, if objecting to all or a portion of the
13600	13600	14 procurement plan, accompanied by specific alternative
13601	13601	15 wording or proposals. All comments shall be posted on the
13602	13602	16 Agency's and Commission's websites. During this 30-day
13603	13603	17 comment period, the Agency shall hold at least one public
13604	13604	18 hearing within each utility's service area for the purpose
13605	13605	19 of receiving public comment on the procurement plan.
13606	13606	20 Within 14 days following the end of the 30-day review
13607	13607	21 period, the Agency shall revise the procurement plan as
13608	13608	22 necessary based on the comments received and file the
13609	13609	23 procurement plan with the Commission and post the
13610	13610	24 procurement plan on the websites.
13611	13611	25 (3) Within 5 days after the filing of the procurement
13612	13612	26 plan, any person objecting to the procurement plan shall
13613	13613
13614	13614
13615	13615
13616	13616
13617	13617
13618	13618	SB2497 - 378 - LRB104 12224 JDS 22330 b
13619	13619
13620	13620
13621	13621	SB2497- 379 -LRB104 12224 JDS 22330 b SB2497 - 379 - LRB104 12224 JDS 22330 b
13622	13622	SB2497 - 379 - LRB104 12224 JDS 22330 b
13623	13623	1 file an objection with the Commission. Within 10 days
13624	13624	2 after the filing, the Commission shall determine whether a
13625	13625	3 hearing is necessary. The Commission shall enter its order
13626	13626	4 confirming or modifying the procurement plan within 90
13627	13627	5 days after the filing of the procurement plan by the
13628	13628	6 Illinois Power Agency.
13629	13629	7 (4) The Commission shall approve the procurement plan,
13630	13630	8 including expressly the forecast used in the procurement
13631	13631	9 plan, if the Commission determines that it will ensure
13632	13632	10 adequate, reliable, affordable, efficient, and
13633	13633	11 environmentally sustainable electric service at the lowest
13634	13634	12 total cost over time, taking into account any benefits of
13635	13635	13 price stability.
13636	13636	14 (4.5) The Commission shall review the Agency's
13637	13637	15 recommendations for the selection of applicants to enter
13638	13638	16 into long-term contracts for the sale and delivery of
13639	13639	17 renewable energy credits from new renewable energy
13640	13640	18 facilities to be constructed at or adjacent to the sites
13641	13641	19 of coal-fueled electric generating facilities in this
13642	13642	20 State in accordance with the provisions of subsection
13643	13643	21 (c-5) of Section 1-75 of the Illinois Power Agency Act,
13644	13644	22 and shall approve the Agency's recommendations if the
13645	13645	23 Commission determines that the applicants recommended by
13646	13646	24 the Agency for selection, the proposed new renewable
13647	13647	25 energy facilities to be constructed, the amounts of
13648	13648	26 renewable energy credits to be delivered pursuant to the
13649	13649
13650	13650
13651	13651
13652	13652
13653	13653
13654	13654	SB2497 - 379 - LRB104 12224 JDS 22330 b
13655	13655
13656	13656
13657	13657	SB2497- 380 -LRB104 12224 JDS 22330 b SB2497 - 380 - LRB104 12224 JDS 22330 b
13658	13658	SB2497 - 380 - LRB104 12224 JDS 22330 b
13659	13659	1 contracts, and the other terms of the contracts, are
13660	13660	2 consistent with the requirements of subsection (c-5) of
13661	13661	3 Section 1-75 of the Illinois Power Agency Act.
13662	13662	4 (e) The procurement process shall include each of the
13663	13663	5 following components:
13664	13664	6 (1) Solicitation, pre-qualification, and registration
13665	13665	7 of bidders. The procurement administrator shall
13666	13666	8 disseminate information to potential bidders to promote a
13667	13667	9 procurement event, notify potential bidders that the
13668	13668	10 procurement administrator may enter into a post-bid price
13669	13669	11 negotiation with bidders that meet the applicable
13670	13670	12 benchmarks, provide supply requirements, and otherwise
13671	13671	13 explain the competitive procurement process. In addition
13672	13672	14 to such other publication as the procurement administrator
13673	13673	15 determines is appropriate, this information shall be
13674	13674	16 posted on the Illinois Power Agency's and the Commission's
13675	13675	17 websites. The procurement administrator shall also
13676	13676	18 administer the prequalification process, including
13677	13677	19 evaluation of credit worthiness, compliance with
13678	13678	20 procurement rules, and agreement to the standard form
13679	13679	21 contract developed pursuant to paragraph (2) of this
13680	13680	22 subsection (e). The procurement administrator shall then
13681	13681	23 identify and register bidders to participate in the
13682	13682	24 procurement event.
13683	13683	25 (2) Standard contract forms and credit terms and
13684	13684	26 instruments. The procurement administrator, in
13685	13685
13686	13686
13687	13687
13688	13688
13689	13689
13690	13690	SB2497 - 380 - LRB104 12224 JDS 22330 b
13691	13691
13692	13692
13693	13693	SB2497- 381 -LRB104 12224 JDS 22330 b SB2497 - 381 - LRB104 12224 JDS 22330 b
13694	13694	SB2497 - 381 - LRB104 12224 JDS 22330 b
13695	13695	1 consultation with the utilities, the Commission, and other
13696	13696	2 interested parties and subject to Commission oversight,
13697	13697	3 shall develop and provide standard contract forms for the
13698	13698	4 supplier contracts that meet generally accepted industry
13699	13699	5 practices. Standard credit terms and instruments that meet
13700	13700	6 generally accepted industry practices shall be similarly
13701	13701	7 developed. The procurement administrator shall make
13702	13702	8 available to the Commission all written comments it
13703	13703	9 receives on the contract forms, credit terms, or
13704	13704	10 instruments. If the procurement administrator cannot reach
13705	13705	11 agreement with the applicable electric utility as to the
13706	13706	12 contract terms and conditions, the procurement
13707	13707	13 administrator must notify the Commission of any disputed
13708	13708	14 terms and the Commission shall resolve the dispute. Except
13709	13709	15 as provided under item (vi) of subparagraph (G) of
13710	13710	16 paragraph (1) of subsection (c) of Section 1-75 of the
13711	13711	17 Illinois Power Agency Act, the The terms of the contracts
13712	13712	18 shall not be subject to negotiation by winning bidders,
13713	13713	19 and the bidders must agree to the terms of the contract in
13714	13714	20 advance so that winning bids are selected solely on the
13715	13715	21 basis of price.
13716	13716	22 (3) Establishment of a market-based price benchmark.
13717	13717	23 As part of the development of the procurement process, the
13718	13718	24 procurement administrator, in consultation with the
13719	13719	25 Commission staff, Agency staff, and the procurement
13720	13720	26 monitor, shall establish benchmarks for evaluating the
13721	13721
13722	13722
13723	13723
13724	13724
13725	13725
13726	13726	SB2497 - 381 - LRB104 12224 JDS 22330 b
13727	13727
13728	13728
13729	13729	SB2497- 382 -LRB104 12224 JDS 22330 b SB2497 - 382 - LRB104 12224 JDS 22330 b
13730	13730	SB2497 - 382 - LRB104 12224 JDS 22330 b
13731	13731	1 final prices in the contracts for each of the products
13732	13732	2 that will be procured through the procurement process. The
13733	13733	3 benchmarks shall be based on price data for similar
13734	13734	4 products for the same delivery period and same delivery
13735	13735	5 hub, or other delivery hubs after adjusting for that
13736	13736	6 difference. The price benchmarks may also be adjusted to
13737	13737	7 take into account differences between the information
13738	13738	8 reflected in the underlying data sources and the specific
13739	13739	9 products and procurement process being used to procure
13740	13740	10 power for the Illinois utilities. The benchmarks shall be
13741	13741	11 confidential but shall be provided to, and will be subject
13742	13742	12 to Commission review and approval, prior to a procurement
13743	13743	13 event.
13744	13744	14 (4) Request for proposals competitive procurement
13745	13745	15 process. The procurement administrator shall design and
13746	13746	16 issue a request for proposals to supply electricity in
13747	13747	17 accordance with each utility's procurement plan, as
13748	13748	18 approved by the Commission. The request for proposals
13749	13749	19 shall set forth a procedure for sealed, binding commitment
13750	13750	20 bidding with pay-as-bid settlement, and provision for
13751	13751	21 selection of bids on the basis of price.
13752	13752	22 (5) A plan for implementing contingencies in the event
13753	13753	23 of supplier default or failure of the procurement process
13754	13754	24 to fully meet the expected load requirement due to
13755	13755	25 insufficient supplier participation, Commission rejection
13756	13756	26 of results, or any other cause.
13757	13757
13758	13758
13759	13759
13760	13760
13761	13761
13762	13762	SB2497 - 382 - LRB104 12224 JDS 22330 b
13763	13763
13764	13764
13765	13765	SB2497- 383 -LRB104 12224 JDS 22330 b SB2497 - 383 - LRB104 12224 JDS 22330 b
13766	13766	SB2497 - 383 - LRB104 12224 JDS 22330 b
13767	13767	1 (i) Event of supplier default: In the event of
13768	13768	2 supplier default, the utility shall review the
13769	13769	3 contract of the defaulting supplier to determine if
13770	13770	4 the amount of supply is 200 megawatts or greater, and
13771	13771	5 if there are more than 60 days remaining of the
13772	13772	6 contract term. If both of these conditions are met,
13773	13773	7 and the default results in termination of the
13774	13774	8 contract, the utility shall immediately notify the
13775	13775	9 Illinois Power Agency that a request for proposals
13776	13776	10 must be issued to procure replacement power, and the
13777	13777	11 procurement administrator shall run an additional
13778	13778	12 procurement event. If the contracted supply of the
13779	13779	13 defaulting supplier is less than 200 megawatts or
13780	13780	14 there are less than 60 days remaining of the contract
13781	13781	15 term, the utility shall procure power and energy from
13782	13782	16 the applicable regional transmission organization
13783	13783	17 market, including ancillary services, capacity, and
13784	13784	18 day-ahead or real time energy, or both, for the
13785	13785	19 duration of the contract term to replace the
13786	13786	20 contracted supply; provided, however, that if a needed
13787	13787	21 product is not available through the regional
13788	13788	22 transmission organization market it shall be purchased
13789	13789	23 from the wholesale market.
13790	13790	24 (ii) Failure of the procurement process to fully
13791	13791	25 meet the expected load requirement: If the procurement
13792	13792	26 process fails to fully meet the expected load
13793	13793
13794	13794
13795	13795
13796	13796
13797	13797
13798	13798	SB2497 - 383 - LRB104 12224 JDS 22330 b
13799	13799
13800	13800
13801	13801	SB2497- 384 -LRB104 12224 JDS 22330 b SB2497 - 384 - LRB104 12224 JDS 22330 b
13802	13802	SB2497 - 384 - LRB104 12224 JDS 22330 b
13803	13803	1 requirement due to insufficient supplier participation
13804	13804	2 or due to a Commission rejection of the procurement
13805	13805	3 results, the procurement administrator, the
13806	13806	4 procurement monitor, and the Commission staff shall
13807	13807	5 meet within 10 days to analyze potential causes of low
13808	13808	6 supplier interest or causes for the Commission
13809	13809	7 decision. If changes are identified that would likely
13810	13810	8 result in increased supplier participation, or that
13811	13811	9 would address concerns causing the Commission to
13812	13812	10 reject the results of the prior procurement event, the
13813	13813	11 procurement administrator may implement those changes
13814	13814	12 and rerun the request for proposals process according
13815	13815	13 to a schedule determined by those parties and
13816	13816	14 consistent with Section 1-75 of the Illinois Power
13817	13817	15 Agency Act and this subsection. In any event, a new
13818	13818	16 request for proposals process shall be implemented by
13819	13819	17 the procurement administrator within 90 days after the
13820	13820	18 determination that the procurement process has failed
13821	13821	19 to fully meet the expected load requirement.
13822	13822	20 (iii) In all cases where there is insufficient
13823	13823	21 supply provided under contracts awarded through the
13824	13824	22 procurement process to fully meet the electric
13825	13825	23 utility's load requirement, the utility shall meet the
13826	13826	24 load requirement by procuring power and energy from
13827	13827	25 the applicable regional transmission organization
13828	13828	26 market, including ancillary services, capacity, and
13829	13829
13830	13830
13831	13831
13832	13832
13833	13833
13834	13834	SB2497 - 384 - LRB104 12224 JDS 22330 b
13835	13835
13836	13836
13837	13837	SB2497- 385 -LRB104 12224 JDS 22330 b SB2497 - 385 - LRB104 12224 JDS 22330 b
13838	13838	SB2497 - 385 - LRB104 12224 JDS 22330 b
13839	13839	1 day-ahead or real time energy, or both; provided,
13840	13840	2 however, that if a needed product is not available
13841	13841	3 through the regional transmission organization market
13842	13842	4 it shall be purchased from the wholesale market.
13843	13843	5 (6) The procurement processes described in this
13844	13844	6 subsection, in Section 1-93 of the Illinois Power Agency
13845	13845	7 Act, and in subsection (c-5) of Section 1-75 of the
13846	13846	8 Illinois Power Agency Act are exempt from the requirements
13847	13847	9 of the Illinois Procurement Code, pursuant to Section
13848	13848	10 20-10 of that Code.
13849	13849	11 (f) Within 2 business days after opening the sealed bids,
13850	13850	12 the procurement administrator shall submit a confidential
13851	13851	13 report to the Commission. The report shall contain the results
13852	13852	14 of the bidding for each of the products along with the
13853	13853	15 procurement administrator's recommendation for the acceptance
13854	13854	16 and rejection of bids based on the price benchmark criteria
13855	13855	17 and other factors observed in the process. The procurement
13856	13856	18 monitor also shall submit a confidential report to the
13857	13857	19 Commission within 2 business days after opening the sealed
13858	13858	20 bids. The report shall contain the procurement monitor's
13859	13859	21 assessment of bidder behavior in the process as well as an
13860	13860	22 assessment of the procurement administrator's compliance with
13861	13861	23 the procurement process and rules. The Commission shall review
13862	13862	24 the confidential reports submitted by the procurement
13863	13863	25 administrator and procurement monitor, and shall accept or
13864	13864	26 reject the recommendations of the procurement administrator
13865	13865
13866	13866
13867	13867
13868	13868
13869	13869
13870	13870	SB2497 - 385 - LRB104 12224 JDS 22330 b
13871	13871
13872	13872
13873	13873	SB2497- 386 -LRB104 12224 JDS 22330 b SB2497 - 386 - LRB104 12224 JDS 22330 b
13874	13874	SB2497 - 386 - LRB104 12224 JDS 22330 b
13875	13875	1 within 2 business days after receipt of the reports.
13876	13876	2 (g) Within 3 business days after the Commission decision
13877	13877	3 approving the results of a procurement event, the utility
13878	13878	4 shall enter into binding contractual arrangements with the
13879	13879	5 winning suppliers using the standard form contracts; except
13880	13880	6 that the utility shall not be required either directly or
13881	13881	7 indirectly to execute the contracts if a tariff that is
13882	13882	8 consistent with subsection (l) of this Section has not been
13883	13883	9 approved and placed into effect for that utility.
13884	13884	10 (h) For the procurement of standard wholesale products,
13885	13885	11 the names of the successful bidders and the load weighted
13886	13886	12 average of the winning bid prices for each contract type and
13887	13887	13 for each contract term shall be made available to the public at
13888	13888	14 the time of Commission approval of a procurement event. For
13889	13889	15 procurements conducted to meet the requirements of subsection
13890	13890	16 (b) of Section 1-56 or subsection (c) of Section 1-75 of the
13891	13891	17 Illinois Power Agency Act governed by the provisions of this
13892	13892	18 Section, the address and nameplate capacity of the new
13893	13893	19 renewable energy generating facility proposed by a winning
13894	13894	20 bidder shall also be made available to the public at the time
13895	13895	21 of Commission approval of a procurement event, along with the
13896	13896	22 business address and contact information for any winning
13897	13897	23 bidder. An estimate or approximation of the nameplate capacity
13898	13898	24 of the new renewable energy generating facility may be
13899	13899	25 disclosed if necessary to protect the confidentiality of
13900	13900	26 individual bid prices.
13901	13901
13902	13902
13903	13903
13904	13904
13905	13905
13906	13906	SB2497 - 386 - LRB104 12224 JDS 22330 b
13907	13907
13908	13908
13909	13909	SB2497- 387 -LRB104 12224 JDS 22330 b SB2497 - 387 - LRB104 12224 JDS 22330 b
13910	13910	SB2497 - 387 - LRB104 12224 JDS 22330 b
13911	13911	1 The Commission, the procurement monitor, the procurement
13912	13912	2 administrator, the Illinois Power Agency, and all participants
13913	13913	3 in the procurement process shall maintain the confidentiality
13914	13914	4 of all other supplier and bidding information in a manner
13915	13915	5 consistent with all applicable laws, rules, regulations, and
13916	13916	6 tariffs. Confidential information, including the confidential
13917	13917	7 reports submitted by the procurement administrator and
13918	13918	8 procurement monitor pursuant to subsection (f) of this
13919	13919	9 Section, shall not be made publicly available and shall not be
13920	13920	10 discoverable by any party in any proceeding, absent a
13921	13921	11 compelling demonstration of need, nor shall those reports be
13922	13922	12 admissible in any proceeding other than one for law
13923	13923	13 enforcement purposes.
13924	13924	14 (h-5) For procurements conducted to meet the requirements
13925	13925	15 of subsection (b) of Section 1-56 or subsection (c) of Section
13926	13926	16 1-75 of the Illinois Power Agency Act, the Illinois Power
13927	13927	17 Agency shall release aggregated information related to
13928	13928	18 participation levels across product types and the basis of
13929	13929	19 rejection for non-accepted bids if the Commission, the
13930	13930	20 procurement monitor, the procurement administrator, and the
13931	13931	21 Illinois Power Agency determine that the release of this
13932	13932	22 information would not result in the disclosure of confidential
13933	13933	23 bid information or negatively impact the competitiveness of
13934	13934	24 future renewable energy credit procurements.
13935	13935	25 (i) Within 2 business days after a Commission decision
13936	13936	26 approving the results of a procurement event or such other
13937	13937
13938	13938
13939	13939
13940	13940
13941	13941
13942	13942	SB2497 - 387 - LRB104 12224 JDS 22330 b
13943	13943
13944	13944
13945	13945	SB2497- 388 -LRB104 12224 JDS 22330 b SB2497 - 388 - LRB104 12224 JDS 22330 b
13946	13946	SB2497 - 388 - LRB104 12224 JDS 22330 b
13947	13947	1 date as may be required by the Commission from time to time,
13948	13948	2 the utility shall file for informational purposes with the
13949	13949	3 Commission its actual or estimated retail supply charges, as
13950	13950	4 applicable, by customer supply group reflecting the costs
13951	13951	5 associated with the procurement and computed in accordance
13952	13952	6 with the tariffs filed pursuant to subsection (l) of this
13953	13953	7 Section and approved by the Commission.
13954	13954	8 (j) Within 60 days following August 28, 2007 (the
13955	13955	9 effective date of Public Act 95-481), each electric utility
13956	13956	10 that on December 31, 2005 provided electric service to at
13957	13957	11 least 100,000 customers in Illinois shall prepare and file
13958	13958	12 with the Commission an initial procurement plan, which shall
13959	13959	13 conform in all material respects to the requirements of the
13960	13960	14 procurement plan set forth in subsection (b); provided,
13961	13961	15 however, that the Illinois Power Agency Act shall not apply to
13962	13962	16 the initial procurement plan prepared pursuant to this
13963	13963	17 subsection. The initial procurement plan shall identify the
13964	13964	18 portfolio of power and energy products to be procured and
13965	13965	19 delivered for the period June 2008 through May 2009, and shall
13966	13966	20 identify the proposed procurement administrator, who shall
13967	13967	21 have the same experience and expertise as is required of a
13968	13968	22 procurement administrator hired pursuant to Section 1-75 of
13969	13969	23 the Illinois Power Agency Act. Copies of the procurement plan
13970	13970	24 shall be posted and made publicly available on the
13971	13971	25 Commission's website. The initial procurement plan may include
13972	13972	26 contracts for renewable resources that extend beyond May 2009.
13973	13973
13974	13974
13975	13975
13976	13976
13977	13977
13978	13978	SB2497 - 388 - LRB104 12224 JDS 22330 b
13979	13979
13980	13980
13981	13981	SB2497- 389 -LRB104 12224 JDS 22330 b SB2497 - 389 - LRB104 12224 JDS 22330 b
13982	13982	SB2497 - 389 - LRB104 12224 JDS 22330 b
13983	13983	1 (i) Within 14 days following filing of the initial
13984	13984	2 procurement plan, any person may file a detailed objection
13985	13985	3 with the Commission contesting the procurement plan
13986	13986	4 submitted by the electric utility. All objections to the
13987	13987	5 electric utility's plan shall be specific, supported by
13988	13988	6 data or other detailed analyses. The electric utility may
13989	13989	7 file a response to any objections to its procurement plan
13990	13990	8 within 7 days after the date objections are due to be
13991	13991	9 filed. Within 7 days after the date the utility's response
13992	13992	10 is due, the Commission shall determine whether a hearing
13993	13993	11 is necessary. If it determines that a hearing is
13994	13994	12 necessary, it shall require the hearing to be completed
13995	13995	13 and issue an order on the procurement plan within 60 days
13996	13996	14 after the filing of the procurement plan by the electric
13997	13997	15 utility.
13998	13998	16 (ii) The order shall approve or modify the procurement
13999	13999	17 plan, approve an independent procurement administrator,
14000	14000	18 and approve or modify the electric utility's tariffs that
14001	14001	19 are proposed with the initial procurement plan. The
14002	14002	20 Commission shall approve the procurement plan if the
14003	14003	21 Commission determines that it will ensure adequate,
14004	14004	22 reliable, affordable, efficient, and environmentally
14005	14005	23 sustainable electric service at the lowest total cost over
14006	14006	24 time, taking into account any benefits of price stability.
14007	14007	25 (k) (Blank).
14008	14008	26 (k-5) (Blank).
14009	14009
14010	14010
14011	14011
14012	14012
14013	14013
14014	14014	SB2497 - 389 - LRB104 12224 JDS 22330 b
14015	14015
14016	14016
14017	14017	SB2497- 390 -LRB104 12224 JDS 22330 b SB2497 - 390 - LRB104 12224 JDS 22330 b
14018	14018	SB2497 - 390 - LRB104 12224 JDS 22330 b
14019	14019	1 (l) An electric utility shall recover its costs incurred
14020	14020	2 under this Section and subsection (c-5) of Section 1-75 of the
14021	14021	3 Illinois Power Agency Act, including, but not limited to, the
14022	14022	4 costs of procuring power and energy demand-response resources
14023	14023	5 under this Section and its costs for purchasing renewable
14024	14024	6 energy credits pursuant to subsection (c-5) of Section 1-75 of
14025	14025	7 the Illinois Power Agency Act. The utility shall file with the
14026	14026	8 initial procurement plan its proposed tariffs through which
14027	14027	9 its costs of procuring power that are incurred pursuant to a
14028	14028	10 Commission-approved procurement plan and those other costs
14029	14029	11 identified in this subsection (l), will be recovered. The
14030	14030	12 tariffs shall include a formula rate or charge designed to
14031	14031	13 pass through both the costs incurred by the utility in
14032	14032	14 procuring a supply of electric power and energy for the
14033	14033	15 applicable customer classes with no mark-up or return on the
14034	14034	16 price paid by the utility for that supply, plus any just and
14035	14035	17 reasonable costs that the utility incurs in arranging and
14036	14036	18 providing for the supply of electric power and energy. The
14037	14037	19 formula rate or charge shall also contain provisions that
14038	14038	20 ensure that its application does not result in over or under
14039	14039	21 recovery due to changes in customer usage and demand patterns,
14040	14040	22 and that provide for the correction, on at least an annual
14041	14041	23 basis, of any accounting errors that may occur. A utility
14042	14042	24 shall recover through the tariff all reasonable costs incurred
14043	14043	25 to implement or comply with any procurement plan that is
14044	14044	26 developed and put into effect pursuant to Section 1-75 of the
14045	14045
14046	14046
14047	14047
14048	14048
14049	14049
14050	14050	SB2497 - 390 - LRB104 12224 JDS 22330 b
14051	14051
14052	14052
14053	14053	SB2497- 391 -LRB104 12224 JDS 22330 b SB2497 - 391 - LRB104 12224 JDS 22330 b
14054	14054	SB2497 - 391 - LRB104 12224 JDS 22330 b
14055	14055	1 Illinois Power Agency Act and this Section, and for the
14056	14056	2 procurement of renewable energy credits pursuant to subsection
14057	14057	3 (c-5) of Section 1-75 of the Illinois Power Agency Act,
14058	14058	4 including any fees assessed by the Illinois Power Agency,
14059	14059	5 costs associated with load balancing, and contingency plan
14060	14060	6 costs. The electric utility shall also recover its full costs
14061	14061	7 of procuring electric supply for which it contracted before
14062	14062	8 the effective date of this Section in conjunction with the
14063	14063	9 provision of full requirements service under fixed-price
14064	14064	10 bundled service tariffs subsequent to December 31, 2006. All
14065	14065	11 such costs shall be deemed to have been prudently incurred.
14066	14066	12 The pass-through tariffs that are filed and approved pursuant
14067	14067	13 to this Section shall not be subject to review under, or in any
14068	14068	14 way limited by, Section 16-111(i) of this Act. All of the costs
14069	14069	15 incurred by the electric utility associated with the purchase
14070	14070	16 of zero emission credits in accordance with subsection (d-5)
14071	14071	17 of Section 1-75 of the Illinois Power Agency Act, all costs
14072	14072	18 incurred by the electric utility associated with the purchase
14073	14073	19 of carbon mitigation credits in accordance with subsection
14074	14074	20 (d-10) of Section 1-75 of the Illinois Power Agency Act, and,
14075	14075	21 beginning June 1, 2017, all of the costs incurred by the
14076	14076	22 electric utility associated with the purchase of renewable
14077	14077	23 energy resources in accordance with Sections 1-56 and 1-75 of
14078	14078	24 the Illinois Power Agency Act, and all of the costs incurred by
14079	14079	25 the electric utility in purchasing renewable energy credits in
14080	14080	26 accordance with subsection (c-5) of Section 1-75 of the
14081	14081
14082	14082
14083	14083
14084	14084
14085	14085
14086	14086	SB2497 - 391 - LRB104 12224 JDS 22330 b
14087	14087
14088	14088
14089	14089	SB2497- 392 -LRB104 12224 JDS 22330 b SB2497 - 392 - LRB104 12224 JDS 22330 b
14090	14090	SB2497 - 392 - LRB104 12224 JDS 22330 b
14091	14091	1 Illinois Power Agency Act, and all costs incurred by the
14092	14092	2 electric utility in purchasing energy storage resources, net
14093	14093	3 of any revenues to the electric utility, in accordance with
14094	14094	4 Section 1-93 of the Illinois Power Agency Act shall be
14095	14095	5 recovered through the electric utility's tariffed charges
14096	14096	6 applicable to all of its retail customers, as specified in
14097	14097	7 subsection (k) or subsection (i-5), as applicable, of Section
14098	14098	8 16-108 of this Act, and shall not be recovered through the
14099	14099	9 electric utility's tariffed charges for electric power and
14100	14100	10 energy supply to its eligible retail customers.
14101	14101	11 (m) The Commission has the authority to adopt rules to
14102	14102	12 carry out the provisions of this Section. For the public
14103	14103	13 interest, safety, and welfare, the Commission also has
14104	14104	14 authority to adopt rules to carry out the provisions of this
14105	14105	15 Section on an emergency basis immediately following August 28,
14106	14106	16 2007 (the effective date of Public Act 95-481).
14107	14107	17 (n) Notwithstanding any other provision of this Act, any
14108	14108	18 affiliated electric utilities that submit a single procurement
14109	14109	19 plan covering their combined needs may procure for those
14110	14110	20 combined needs in conjunction with that plan, and may enter
14111	14111	21 jointly into power supply contracts, purchases, and other
14112	14112	22 procurement arrangements, and allocate capacity and energy and
14113	14113	23 cost responsibility therefor among themselves in proportion to
14114	14114	24 their requirements.
14115	14115	25 (o) On or before June 1 of each year, the Commission shall
14116	14116	26 hold an informal hearing for the purpose of receiving comments
14117	14117
14118	14118
14119	14119
14120	14120
14121	14121
14122	14122	SB2497 - 392 - LRB104 12224 JDS 22330 b
14123	14123
14124	14124
14125	14125	SB2497- 393 -LRB104 12224 JDS 22330 b SB2497 - 393 - LRB104 12224 JDS 22330 b
14126	14126	SB2497 - 393 - LRB104 12224 JDS 22330 b
14127	14127	1 on the prior year's procurement process and any
14128	14128	2 recommendations for change.
14129	14129	3 (p) An electric utility subject to this Section may
14130	14130	4 propose to invest, lease, own, or operate an electric
14131	14131	5 generation facility as part of its procurement plan, provided
14132	14132	6 the utility demonstrates that such facility is the least-cost
14133	14133	7 option to provide electric service to those retail customers
14134	14134	8 included in the plan's electric supply service requirements.
14135	14135	9 If the facility is shown to be the least-cost option and is
14136	14136	10 included in a procurement plan prepared in accordance with
14137	14137	11 Section 1-75 of the Illinois Power Agency Act and this
14138	14138	12 Section, then the electric utility shall make a filing
14139	14139	13 pursuant to Section 8-406 of this Act, and may request of the
14140	14140	14 Commission any statutory relief required thereunder. If the
14141	14141	15 Commission grants all of the necessary approvals for the
14142	14142	16 proposed facility, such supply shall thereafter be considered
14143	14143	17 as a pre-existing contract under subsection (b) of this
14144	14144	18 Section. The Commission shall in any order approving a
14145	14145	19 proposal under this subsection specify how the utility will
14146	14146	20 recover the prudently incurred costs of investing in, leasing,
14147	14147	21 owning, or operating such generation facility through just and
14148	14148	22 reasonable rates charged to those retail customers included in
14149	14149	23 the plan's electric supply service requirements. Cost recovery
14150	14150	24 for facilities included in the utility's procurement plan
14151	14151	25 pursuant to this subsection shall not be subject to review
14152	14152	26 under or in any way limited by the provisions of Section
14153	14153
14154	14154
14155	14155
14156	14156
14157	14157
14158	14158	SB2497 - 393 - LRB104 12224 JDS 22330 b
14159	14159
14160	14160
14161	14161	SB2497- 394 -LRB104 12224 JDS 22330 b SB2497 - 394 - LRB104 12224 JDS 22330 b
14162	14162	SB2497 - 394 - LRB104 12224 JDS 22330 b
14163	14163	1 16-111(i) of this Act. Nothing in this Section is intended to
14164	14164	2 prohibit a utility from filing for a fuel adjustment clause as
14165	14165	3 is otherwise permitted under Section 9-220 of this Act.
14166	14166	4 (q) If the Illinois Power Agency filed with the
14167	14167	5 Commission, under Section 16-111.5 of this Act, its proposed
14168	14168	6 procurement plan for the period commencing June 1, 2017, and
14169	14169	7 the Commission has not yet entered its final order approving
14170	14170	8 the plan on or before the effective date of this amendatory Act
14171	14171	9 of the 99th General Assembly, then the Illinois Power Agency
14172	14172	10 shall file a notice of withdrawal with the Commission, after
14173	14173	11 the effective date of this amendatory Act of the 99th General
14174	14174	12 Assembly, to withdraw the proposed procurement of renewable
14175	14175	13 energy resources to be approved under the plan, other than the
14176	14176	14 procurement of renewable energy credits from distributed
14177	14177	15 renewable energy generation devices using funds previously
14178	14178	16 collected from electric utilities' retail customers that take
14179	14179	17 service pursuant to electric utilities' hourly pricing tariff
14180	14180	18 or tariffs and, for an electric utility that serves less than
14181	14181	19 100,000 retail customers in the State, other than the
14182	14182	20 procurement of renewable energy credits from distributed
14183	14183	21 renewable energy generation devices. Upon receipt of the
14184	14184	22 notice, the Commission shall enter an order that approves the
14185	14185	23 withdrawal of the proposed procurement of renewable energy
14186	14186	24 resources from the plan. The initially proposed procurement of
14187	14187	25 renewable energy resources shall not be approved or be the
14188	14188	26 subject of any further hearing, investigation, proceeding, or
14189	14189
14190	14190
14191	14191
14192	14192
14193	14193
14194	14194	SB2497 - 394 - LRB104 12224 JDS 22330 b
14195	14195
14196	14196
14197	14197	SB2497- 395 -LRB104 12224 JDS 22330 b SB2497 - 395 - LRB104 12224 JDS 22330 b
14198	14198	SB2497 - 395 - LRB104 12224 JDS 22330 b
14199	14199	1 order of any kind.
14200	14200	2 This amendatory Act of the 99th General Assembly preempts
14201	14201	3 and supersedes any order entered by the Commission that
14202	14202	4 approved the Illinois Power Agency's procurement plan for the
14203	14203	5 period commencing June 1, 2017, to the extent it is
14204	14204	6 inconsistent with the provisions of this amendatory Act of the
14205	14205	7 99th General Assembly. To the extent any previously entered
14206	14206	8 order approved the procurement of renewable energy resources,
14207	14207	9 the portion of that order approving the procurement shall be
14208	14208	10 void, other than the procurement of renewable energy credits
14209	14209	11 from distributed renewable energy generation devices using
14210	14210	12 funds previously collected from electric utilities' retail
14211	14211	13 customers that take service under electric utilities' hourly
14212	14212	14 pricing tariff or tariffs and, for an electric utility that
14213	14213	15 serves less than 100,000 retail customers in the State, other
14214	14214	16 than the procurement of renewable energy credits for
14215	14215	17 distributed renewable energy generation devices.
14216	14216	18 (Source: P.A. 102-662, eff. 9-15-21.)
14217	14217	19 (220 ILCS 5/16-115)
14218	14218	20 Sec. 16-115. Certification of alternative retail electric
14219	14219	21 suppliers.
14220	14220	22 (a) Any alternative retail electric supplier must obtain a
14221	14221	23 certificate of service authority from the Commission in
14222	14222	24 accordance with this Section before serving any retail
14223	14223	25 customer or other user located in this State. An alternative
14224	14224
14225	14225
14226	14226
14227	14227
14228	14228
14229	14229	SB2497 - 395 - LRB104 12224 JDS 22330 b
14230	14230
14231	14231
14232	14232	SB2497- 396 -LRB104 12224 JDS 22330 b SB2497 - 396 - LRB104 12224 JDS 22330 b
14233	14233	SB2497 - 396 - LRB104 12224 JDS 22330 b
14234	14234	1 retail electric supplier may request, and the Commission may
14235	14235	2 grant, a certificate of service authority for the entire State
14236	14236	3 or for a specified geographic area of the State. A certificate
14237	14237	4 granted pursuant to this Section is not property, and the
14238	14238	5 grant of a certificate to an entity does not create a property
14239	14239	6 interest in the certificate. This Section does not diminish
14240	14240	7 the existing rights of a certificate holder to notice and
14241	14241	8 hearing as proscribed by the Illinois Administrative Procedure
14242	14242	9 Act and in rules adopted by the Commission.
14243	14243	10 (b) An alternative retail electric supplier seeking a
14244	14244	11 certificate of service authority shall file with the
14245	14245	12 Commission a verified application containing information
14246	14246	13 showing that the applicant meets the requirements of this
14247	14247	14 Section. The alternative retail electric supplier shall
14248	14248	15 publish notice of its application in the official State
14249	14249	16 newspaper within 10 days following the date of its filing. No
14250	14250	17 later than 45 days after a complete application is properly
14251	14251	18 filed with the Commission, and such notice is published, the
14252	14252	19 Commission shall issue its order granting or denying the
14253	14253	20 application.
14254	14254	21 (c) An application for a certificate of service authority
14255	14255	22 shall identify the area or areas in which the applicant
14256	14256	23 intends to offer service and the types of services it intends
14257	14257	24 to offer. Applicants that seek to serve residential or small
14258	14258	25 commercial retail customers within a geographic area that is
14259	14259	26 smaller than an electric utility's service area shall submit
14260	14260
14261	14261
14262	14262
14263	14263
14264	14264
14265	14265	SB2497 - 396 - LRB104 12224 JDS 22330 b
14266	14266
14267	14267
14268	14268	SB2497- 397 -LRB104 12224 JDS 22330 b SB2497 - 397 - LRB104 12224 JDS 22330 b
14269	14269	SB2497 - 397 - LRB104 12224 JDS 22330 b
14270	14270	1 evidence demonstrating that the designation of this smaller
14271	14271	2 area does not violate Section 16-115A. An applicant that seeks
14272	14272	3 to serve residential or small commercial retail customers may
14273	14273	4 state in its application for certification any limitations
14274	14274	5 that will be imposed on the number of customers or maximum load
14275	14275	6 to be served.
14276	14276	7 (d) The Commission shall grant the application for a
14277	14277	8 certificate of service authority if it makes the findings set
14278	14278	9 forth in this subsection based on the verified application and
14279	14279	10 such other information as the applicant may submit:
14280	14280	11 (1) That the applicant possesses sufficient technical,
14281	14281	12 financial, and managerial resources and abilities to
14282	14282	13 provide the service for which it seeks a certificate of
14283	14283	14 service authority. In determining the level of technical,
14284	14284	15 financial, and managerial resources and abilities which
14285	14285	16 the applicant must demonstrate, the Commission shall
14286	14286	17 consider (i) the characteristics, including the size and
14287	14287	18 financial sophistication, of the customers that the
14288	14288	19 applicant seeks to serve, and (ii) whether the applicant
14289	14289	20 seeks to provide electric power and energy using property,
14290	14290	21 plant, and equipment which it owns, controls, or operates;
14291	14291	22 (2) That the applicant will comply with all applicable
14292	14292	23 federal, State, regional, and industry rules, policies,
14293	14293	24 practices, and procedures for the use, operation, and
14294	14294	25 maintenance of the safety, integrity, and reliability, of
14295	14295	26 the interconnected electric transmission system;
14296	14296
14297	14297
14298	14298
14299	14299
14300	14300
14301	14301	SB2497 - 397 - LRB104 12224 JDS 22330 b
14302	14302
14303	14303
14304	14304	SB2497- 398 -LRB104 12224 JDS 22330 b SB2497 - 398 - LRB104 12224 JDS 22330 b
14305	14305	SB2497 - 398 - LRB104 12224 JDS 22330 b
14306	14306	1 (3) That the applicant will only provide service to
14307	14307	2 retail customers in an electric utility's service area
14308	14308	3 that are eligible to take delivery services under this
14309	14309	4 Act;
14310	14310	5 (4) That the applicant will comply with such
14311	14311	6 informational or reporting requirements as the Commission
14312	14312	7 may by rule establish and provide the information required
14313	14313	8 by Section 16-112. Any data related to contracts for the
14314	14314	9 purchase and sale of electric power and energy shall be
14315	14315	10 made available for review by the Staff of the Commission
14316	14316	11 on a confidential and proprietary basis and only to the
14317	14317	12 extent and for the purposes which the Commission
14318	14318	13 determines are reasonably necessary in order to carry out
14319	14319	14 the purposes of this Act;
14320	14320	15 (5) That the applicant will procure renewable energy
14321	14321	16 resources in accordance with Section 16-115D of this Act,
14322	14322	17 and will source electricity from clean coal facilities, as
14323	14323	18 defined in Section 1-10 of the Illinois Power Agency Act,
14324	14324	19 in amounts at least equal to the percentages set forth in
14325	14325	20 subsections (c) and (d) of Section 1-75 of the Illinois
14326	14326	21 Power Agency Act. For purposes of this Section:
14327	14327	22 (i) (blank);
14328	14328	23 (ii) (blank);
14329	14329	24 (iii) the required sourcing of electricity
14330	14330	25 generated by clean coal facilities, other than the
14331	14331	26 initial clean coal facility, shall be limited to the
14332	14332
14333	14333
14334	14334
14335	14335
14336	14336
14337	14337	SB2497 - 398 - LRB104 12224 JDS 22330 b
14338	14338
14339	14339
14340	14340	SB2497- 399 -LRB104 12224 JDS 22330 b SB2497 - 399 - LRB104 12224 JDS 22330 b
14341	14341	SB2497 - 399 - LRB104 12224 JDS 22330 b
14342	14342	1 amount of electricity that can be procured or sourced
14343	14343	2 at a price at or below the benchmarks approved by the
14344	14344	3 Commission each year in accordance with item (1) of
14345	14345	4 subsection (c) and items (1) and (5) of subsection (d)
14346	14346	5 of Section 1-75 of the Illinois Power Agency Act;
14347	14347	6 (iv) all alternative retail electric suppliers
14348	14348	7 shall execute a sourcing agreement to source
14349	14349	8 electricity from the initial clean coal facility, on
14350	14350	9 the terms set forth in paragraphs (3) and (4) of
14351	14351	10 subsection (d) of Section 1-75 of the Illinois Power
14352	14352	11 Agency Act, except that in lieu of the requirements in
14353	14353	12 subparagraphs (A)(v), (B)(i), (C)(v), and (C)(vi) of
14354	14354	13 paragraph (3) of that subsection (d), the applicant
14355	14355	14 shall execute one or more of the following:
14356	14356	15 (1) if the sourcing agreement is a power
14357	14357	16 purchase agreement, a contract with the initial
14358	14358	17 clean coal facility to purchase in each hour an
14359	14359	18 amount of electricity equal to all clean coal
14360	14360	19 energy made available from the initial clean coal
14361	14361	20 facility during such hour, which the utilities are
14362	14362	21 not required to procure under the terms of
14363	14363	22 subsection (d) of Section 1-75 of the Illinois
14364	14364	23 Power Agency Act, multiplied by a fraction, the
14365	14365	24 numerator of which is the alternative retail
14366	14366	25 electric supplier's retail market sales of
14367	14367	26 electricity (expressed in kilowatthours sold) in
14368	14368
14369	14369
14370	14370
14371	14371
14372	14372
14373	14373	SB2497 - 399 - LRB104 12224 JDS 22330 b
14374	14374
14375	14375
14376	14376	SB2497- 400 -LRB104 12224 JDS 22330 b SB2497 - 400 - LRB104 12224 JDS 22330 b
14377	14377	SB2497 - 400 - LRB104 12224 JDS 22330 b
14378	14378	1 the State during the prior calendar month and the
14379	14379	2 denominator of which is the total sales of
14380	14380	3 electricity (expressed in kilowatthours sold) in
14381	14381	4 the State by alternative retail electric suppliers
14382	14382	5 during such prior month that are subject to the
14383	14383	6 requirements of this paragraph (5) of subsection
14384	14384	7 (d) of this Section and subsection (d) of Section
14385	14385	8 1-75 of the Illinois Power Agency Act plus the
14386	14386	9 total sales of electricity (expressed in
14387	14387	10 kilowatthours sold) by utilities outside of their
14388	14388	11 service areas during such prior month, pursuant to
14389	14389	12 subsection (c) of Section 16-116 of this Act; or
14390	14390	13 (2) if the sourcing agreement is a contract
14391	14391	14 for differences, a contract with the initial clean
14392	14392	15 coal facility in each hour with respect to an
14393	14393	16 amount of electricity equal to all clean coal
14394	14394	17 energy made available from the initial clean coal
14395	14395	18 facility during such hour, which the utilities are
14396	14396	19 not required to procure under the terms of
14397	14397	20 subsection (d) of Section 1-75 of the Illinois
14398	14398	21 Power Agency Act, multiplied by a fraction, the
14399	14399	22 numerator of which is the alternative retail
14400	14400	23 electric supplier's retail market sales of
14401	14401	24 electricity (expressed in kilowatthours sold) in
14402	14402	25 the State during the prior calendar month and the
14403	14403	26 denominator of which is the total sales of
14404	14404
14405	14405
14406	14406
14407	14407
14408	14408
14409	14409	SB2497 - 400 - LRB104 12224 JDS 22330 b
14410	14410
14411	14411
14412	14412	SB2497- 401 -LRB104 12224 JDS 22330 b SB2497 - 401 - LRB104 12224 JDS 22330 b
14413	14413	SB2497 - 401 - LRB104 12224 JDS 22330 b
14414	14414	1 electricity (expressed in kilowatthours sold) in
14415	14415	2 the State by alternative retail electric suppliers
14416	14416	3 during such prior month that are subject to the
14417	14417	4 requirements of this paragraph (5) of subsection
14418	14418	5 (d) of this Section and subsection (d) of Section
14419	14419	6 1-75 of the Illinois Power Agency Act plus the
14420	14420	7 total sales of electricity (expressed in
14421	14421	8 kilowatthours sold) by utilities outside of their
14422	14422	9 service areas during such prior month, pursuant to
14423	14423	10 subsection (c) of Section 16-116 of this Act;
14424	14424	11 (v) if, in any year after the first year of
14425	14425	12 commercial operation, the owner of the clean coal
14426	14426	13 facility fails to demonstrate to the Commission that
14427	14427	14 the initial clean coal facility captured and
14428	14428	15 sequestered at least 50% of the total carbon emissions
14429	14429	16 that the facility would otherwise emit or that
14430	14430	17 sequestration of emissions from prior years has
14431	14431	18 failed, resulting in the release of carbon into the
14432	14432	19 atmosphere, the owner of the facility must offset
14433	14433	20 excess emissions. Any such carbon offsets must be
14434	14434	21 permanent, additional, verifiable, real, located
14435	14435	22 within the State of Illinois, and legally and
14436	14436	23 practicably enforceable. The costs of any such offsets
14437	14437	24 that are not recoverable shall not exceed $15,000,000
14438	14438	25 in any given year. No costs of any such purchases of
14439	14439	26 carbon offsets may be recovered from an alternative
14440	14440
14441	14441
14442	14442
14443	14443
14444	14444
14445	14445	SB2497 - 401 - LRB104 12224 JDS 22330 b
14446	14446
14447	14447
14448	14448	SB2497- 402 -LRB104 12224 JDS 22330 b SB2497 - 402 - LRB104 12224 JDS 22330 b
14449	14449	SB2497 - 402 - LRB104 12224 JDS 22330 b
14450	14450	1 retail electric supplier or its customers. All carbon
14451	14451	2 offsets purchased for this purpose and any carbon
14452	14452	3 emission credits associated with sequestration of
14453	14453	4 carbon from the facility must be permanently retired.
14454	14454	5 The initial clean coal facility shall not forfeit its
14455	14455	6 designation as a clean coal facility if the facility
14456	14456	7 fails to fully comply with the applicable carbon
14457	14457	8 sequestration requirements in any given year, provided
14458	14458	9 the requisite offsets are purchased. However, the
14459	14459	10 Attorney General, on behalf of the People of the State
14460	14460	11 of Illinois, may specifically enforce the facility's
14461	14461	12 sequestration requirement and the other terms of this
14462	14462	13 contract provision. Compliance with the sequestration
14463	14463	14 requirements and offset purchase requirements that
14464	14464	15 apply to the initial clean coal facility shall be
14465	14465	16 reviewed annually by an independent expert retained by
14466	14466	17 the owner of the initial clean coal facility, with the
14467	14467	18 advance written approval of the Attorney General;
14468	14468	19 (vi) The Commission shall, after notice and
14469	14469	20 hearing, revoke the certification of any alternative
14470	14470	21 retail electric supplier that fails to execute a
14471	14471	22 sourcing agreement with the initial clean coal
14472	14472	23 facility as required by item (5) of subsection (d) of
14473	14473	24 this Section. The sourcing agreements with this
14474	14474	25 initial clean coal facility shall be subject to both
14475	14475	26 approval of the initial clean coal facility by the
14476	14476
14477	14477
14478	14478
14479	14479
14480	14480
14481	14481	SB2497 - 402 - LRB104 12224 JDS 22330 b
14482	14482
14483	14483
14484	14484	SB2497- 403 -LRB104 12224 JDS 22330 b SB2497 - 403 - LRB104 12224 JDS 22330 b
14485	14485	SB2497 - 403 - LRB104 12224 JDS 22330 b
14486	14486	1 General Assembly and satisfaction of the requirements
14487	14487	2 of item (4) of subsection (d) of Section 1-75 of the
14488	14488	3 Illinois Power Agency Act, and shall be executed
14489	14489	4 within 90 days after any such approval by the General
14490	14490	5 Assembly. The Commission shall not accept an
14491	14491	6 application for certification from an alternative
14492	14492	7 retail electric supplier that has lost certification
14493	14493	8 under this subsection (d), or any corporate affiliate
14494	14494	9 thereof, for at least one year from the date of
14495	14495	10 revocation;
14496	14496	11 (6) With respect to an applicant that seeks to serve
14497	14497	12 residential or small commercial retail customers, that the
14498	14498	13 area to be served by the applicant and any limitations it
14499	14499	14 proposes on the number of customers or maximum amount of
14500	14500	15 load to be served meet the provisions of Section 16-115A,
14501	14501	16 provided, that the Commission can extend the time for
14502	14502	17 considering such a certificate request by up to 90 days,
14503	14503	18 and can schedule hearings on such a request;
14504	14504	19 (7) That the applicant meets the requirements of
14505	14505	20 subsection (a) of Section 16-128;
14506	14506	21 (8) That the applicant discloses whether the applicant
14507	14507	22 is the subject of any lawsuit filed in a court of law or
14508	14508	23 formal complaint filed with a regulatory agency alleging
14509	14509	24 fraud, deception, or unfair marketing practices or other
14510	14510	25 similar allegations and, if the applicant is the subject
14511	14511	26 of such lawsuit or formal complaint, the applicant shall
14512	14512
14513	14513
14514	14514
14515	14515
14516	14516
14517	14517	SB2497 - 403 - LRB104 12224 JDS 22330 b
14518	14518
14519	14519
14520	14520	SB2497- 404 -LRB104 12224 JDS 22330 b SB2497 - 404 - LRB104 12224 JDS 22330 b
14521	14521	SB2497 - 404 - LRB104 12224 JDS 22330 b
14522	14522	1 identify the name, case number, and jurisdiction of each
14523	14523	2 lawsuit or complaint, and that the applicant is capable of
14524	14524	3 fulfilling its obligations as an alternative retail
14525	14525	4 electric supplier in Illinois notwithstanding any lawsuit
14526	14526	5 or complaint. For the purpose of this item (8), "formal
14527	14527	6 complaint" includes only those complaints that seek a
14528	14528	7 binding determination from a State or federal regulatory
14529	14529	8 body;
14530	14530	9 (9) That the applicant shall at all times remain in
14531	14531	10 compliance with requirements for certification stated in
14532	14532	11 this Section and as the Commission may establish by rule;
14533	14533	12 (10) That the applicant shall execute and maintain a
14534	14534	13 license or permit bond issued by a qualifying surety or
14535	14535	14 insurance company authorized to transact business in the
14536	14536	15 State of Illinois in favor of the People of the State of
14537	14537	16 Illinois. The amount of the bond shall equal $30,000 if
14538	14538	17 the applicant seeks to serve only nonresidential retail
14539	14539	18 customers with maximum electrical demands of one megawatt
14540	14540	19 or more, $150,000 if the applicant seeks to serve only
14541	14541	20 nonresidential retail customers with annual electrical
14542	14542	21 consumption greater than 15,000 kilowatt-hours, or
14543	14543	22 $500,000 if the applicant seeks to serve all eligible
14544	14544	23 customers. Applicants shall be required to submit an
14545	14545	24 additional $500,000 bond if the applicant intends to
14546	14546	25 market to residential customers using in-person
14547	14547	26 solicitations. The bonds shall be conditioned upon the
14548	14548
14549	14549
14550	14550
14551	14551
14552	14552
14553	14553	SB2497 - 404 - LRB104 12224 JDS 22330 b
14554	14554
14555	14555
14556	14556	SB2497- 405 -LRB104 12224 JDS 22330 b SB2497 - 405 - LRB104 12224 JDS 22330 b
14557	14557	SB2497 - 405 - LRB104 12224 JDS 22330 b
14558	14558	1 full and faithful performance of all duties and
14559	14559	2 obligations of the applicant as an alternative retail
14560	14560	3 electric supplier, shall be valid for a period of not less
14561	14561	4 than one year, and may be drawn upon in whole or in part to
14562	14562	5 satisfy any penalties imposed, and finally adjudicated, by
14563	14563	6 the Commission pursuant to Section 16-115B for a violation
14564	14564	7 of the applicant's duties or obligations, except that the
14565	14565	8 total amount of claims and penalties against the bond
14566	14566	9 shall not exceed the penal sum of the bond and shall not
14567	14567	10 include any consequential or punitive damage. The cost of
14568	14568	11 the bond shall be paid by the applicant. The applicant
14569	14569	12 shall file a copy of this bond, with a notarized
14570	14570	13 verification page from the issuer, as part of its
14571	14571	14 application for certification under 83 Ill. Adm. Code 451;
14572	14572	15 and
14573	14573	16 (11) That the applicant will comply with all other
14574	14574	17 applicable laws and regulations.
14575	14575	18 (d-3) The Commission may deny with prejudice an
14576	14576	19 application in which the applicant fails to provide the
14577	14577	20 Commission with information sufficient for the Commission to
14578	14578	21 grant the application.
14579	14579	22 (d-5) (Blank).
14580	14580	23 (d-10) Transmission co-location customer. Within 120 days
14581	14581	24 of the effective date of this Amendatory Act of the 104th
14582	14582	25 General Assembly, the Commission shall initiate a rulemaking
14583	14583	26 applicable to the certification and annual recertification of
14584	14584
14585	14585
14586	14586
14587	14587
14588	14588
14589	14589	SB2497 - 405 - LRB104 12224 JDS 22330 b
14590	14590
14591	14591
14592	14592	SB2497- 406 -LRB104 12224 JDS 22330 b SB2497 - 406 - LRB104 12224 JDS 22330 b
14593	14593	SB2497 - 406 - LRB104 12224 JDS 22330 b
14594	14594	1 co-location customers as an alternative retail electric
14595	14595	2 supplier. The rulemaking shall include minimum standards for
14596	14596	3 the contractual relationship between the generator(s), the
14597	14597	4 energy storage, and the load to the extent that such entities
14598	14598	5 are not owned by a common parent or otherwise affiliated. An
14599	14599	6 alternative retail electric supplier that is a transmission
14600	14600	7 co-location customer may not serve any retail customer and
14601	14601	8 must serve only the transmission co-location customer.
14602	14602	9 (d-15) Distribution co-location customer. Within 120 days
14603	14603	10 of the effective date of this Amendatory Act of the 104th
14604	14604	11 General Assembly, the Commission shall initiate a rulemaking
14605	14605	12 applicable to the certification and annual recertification of
14606	14606	13 co-location customers as an alternative retail electric
14607	14607	14 supplier. The rulemaking shall include minimum standards for
14608	14608	15 the contractual relationship between the generator(s), the
14609	14609	16 energy storage, and the load(s) to the extent that such
14610	14610	17 entities are not owned by a common parent or otherwise
14611	14611	18 affiliated. An alternative retail electric supplier that is a
14612	14612	19 distribution co-location customer may not serve any retail
14613	14613	20 customer and must serve only the distribution co-location
14614	14614	21 customer.
14615	14615	22 (e) A retail customer that owns a cogeneration or
14616	14616	23 self-generation facility and that seeks certification only to
14617	14617	24 provide electric power and energy from such facility to retail
14618	14618	25 customers at separate locations which customers are both (i)
14619	14619	26 owned by, or a subsidiary or other corporate affiliate of,
14620	14620
14621	14621
14622	14622
14623	14623
14624	14624
14625	14625	SB2497 - 406 - LRB104 12224 JDS 22330 b
14626	14626
14627	14627
14628	14628	SB2497- 407 -LRB104 12224 JDS 22330 b SB2497 - 407 - LRB104 12224 JDS 22330 b
14629	14629	SB2497 - 407 - LRB104 12224 JDS 22330 b
14630	14630	1 such applicant and (ii) eligible for delivery services, shall
14631	14631	2 be granted a certificate of service authority upon filing an
14632	14632	3 application and notifying the Commission that it has entered
14633	14633	4 into an agreement with the relevant electric utilities
14634	14634	5 pursuant to Section 16-118. Provided, however, that if the
14635	14635	6 retail customer owning such cogeneration or self-generation
14636	14636	7 facility would not be charged a transition charge due to the
14637	14637	8 exemption provided under subsection (f) of Section 16-108
14638	14638	9 prior to the certification, and the retail customers at
14639	14639	10 separate locations are taking delivery services in conjunction
14640	14640	11 with purchasing power and energy from the facility, the retail
14641	14641	12 customer on whose premises the facility is located shall not
14642	14642	13 thereafter be required to pay transition charges on the power
14643	14643	14 and energy that such retail customer takes from the facility.
14644	14644	15 (f) The Commission shall have the authority to promulgate
14645	14645	16 rules and regulations to carry out the provisions of this
14646	14646	17 Section. On or before May 1, 1999, the Commission shall adopt a
14647	14647	18 rule or rules applicable to the certification of those
14648	14648	19 alternative retail electric suppliers that seek to serve only
14649	14649	20 nonresidential retail customers with maximum electrical
14650	14650	21 demands of one megawatt or more which shall provide for (i)
14651	14651	22 expedited and streamlined procedures for certification of such
14652	14652	23 alternative retail electric suppliers and (ii) specific
14653	14653	24 criteria which, if met by any such alternative retail electric
14654	14654	25 supplier, shall constitute the demonstration of technical,
14655	14655	26 financial and managerial resources and abilities to provide
14656	14656
14657	14657
14658	14658
14659	14659
14660	14660
14661	14661	SB2497 - 407 - LRB104 12224 JDS 22330 b
14662	14662
14663	14663
14664	14664	SB2497- 408 -LRB104 12224 JDS 22330 b SB2497 - 408 - LRB104 12224 JDS 22330 b
14665	14665	SB2497 - 408 - LRB104 12224 JDS 22330 b
14666	14666	1 service required by paragraph (1) of subsection (d) of this
14667	14667	2 Section, such as a requirement to post a bond or letter of
14668	14668	3 credit, from a responsible surety or financial institution, of
14669	14669	4 sufficient size for the nature and scope of the services to be
14670	14670	5 provided; demonstration of adequate insurance for the scope
14671	14671	6 and nature of the services to be provided; and experience in
14672	14672	7 providing similar services in other jurisdictions.
14673	14673	8 (g) An alternative retail electric supplier may seek
14674	14674	9 confidential treatment for the following information by filing
14675	14675	10 an affidavit with the Commission so long as the affidavit
14676	14676	11 meets the requirements in this subsection (g):
14677	14677	12 (1) the total annual kilowatt-hours delivered and sold
14678	14678	13 by an alternative retail electric supplier to retail
14679	14679	14 customers within each utility service territory and the
14680	14680	15 total annual kilowatt-hours delivered and sold by an
14681	14681	16 alternative retail electric supplier to retail customers
14682	14682	17 in all utility service territories in the preceding
14683	14683	18 calendar year as required by 83 Ill. Adm. Code 451.770;
14684	14684	19 (2) the total peak demand supplied by an alternative
14685	14685	20 retail electric supplier during the previous year in each
14686	14686	21 utility service territory as required by 83 Ill. Adm. Code
14687	14687	22 465.40;
14688	14688	23 (3) a good faith estimate of the amount an alternative
14689	14689	24 retail electric supplier expects to be obliged to pay the
14690	14690	25 utility under single billing tariffs during the next 12
14691	14691	26 months and the amount of any bond or letter of credit used
14692	14692
14693	14693
14694	14694
14695	14695
14696	14696
14697	14697	SB2497 - 408 - LRB104 12224 JDS 22330 b
14698	14698
14699	14699
14700	14700	SB2497- 409 -LRB104 12224 JDS 22330 b SB2497 - 409 - LRB104 12224 JDS 22330 b
14701	14701	SB2497 - 409 - LRB104 12224 JDS 22330 b
14702	14702	1 to demonstrate an alternative retail electric supplier's
14703	14703	2 credit worthiness to provide single billing services
14704	14704	3 pursuant to 83 Ill. Adm. Code 451.510(a) and (b).
14705	14705	4 The affidavit must be filed contemporaneously with the
14706	14706	5 information for which confidential treatment is sought and
14707	14707	6 must clearly state that the affiant seeks confidential
14708	14708	7 treatment pursuant to this subsection (g) and the information
14709	14709	8 for which confidential treatment is sought must be clearly
14710	14710	9 identified on the confidential version of the document filed
14711	14711	10 with the Commission. The affidavit must be accompanied by a
14712	14712	11 "confidential" and a "public" version of the document or
14713	14713	12 documents containing the information for which confidential
14714	14714	13 treatment is sought.
14715	14715	14 If the alternative retail electric supplier has met the
14716	14716	15 affidavit requirements of this subsection (g), then the
14717	14717	16 Commission shall afford confidential treatment to the
14718	14718	17 information identified in the affidavit for a period of 2
14719	14719	18 years after the date the affidavit is received by the
14720	14720	19 Commission.
14721	14721	20 Nothing in this subsection (g) prevents an alternative
14722	14722	21 retail electric supplier from filing a petition with the
14723	14723	22 Commission seeking confidential treatment for information
14724	14724	23 beyond that identified in this subsection (g) or for
14725	14725	24 information contained in other reports or documents filed with
14726	14726	25 the Commission other than annual rate reports.
14727	14727	26 Nothing in this subsection (g) prevents the Commission, on
14728	14728
14729	14729
14730	14730
14731	14731
14732	14732
14733	14733	SB2497 - 409 - LRB104 12224 JDS 22330 b
14734	14734
14735	14735
14736	14736	SB2497- 410 -LRB104 12224 JDS 22330 b SB2497 - 410 - LRB104 12224 JDS 22330 b
14737	14737	SB2497 - 410 - LRB104 12224 JDS 22330 b
14738	14738	1 its own motion, or any party from filing a formal petition with
14739	14739	2 the Commission seeking to reconsider the conferring of
14740	14740	3 confidential status on an item of information afforded
14741	14741	4 confidential treatment pursuant to this subsection (g).
14742	14742	5 The Commission, on its own motion, may at any time
14743	14743	6 initiate a docketed proceeding to investigate the continued
14744	14744	7 applicability of this subsection (g) to the information
14745	14745	8 contained in items (i), (ii), and (iii) of this subsection
14746	14746	9 (g). If, at the end of such investigation, the Commission
14747	14747	10 determines that a particular item of information should no
14748	14748	11 longer be eligible for the affidavit-based process outlined in
14749	14749	12 this subsection (g), the Commission may enter an order to
14750	14750	13 remove that item from the list of items eligible for the
14751	14751	14 process set forth in this subsection (g). Notwithstanding any
14752	14752	15 such order, in the event the Commission makes such a
14753	14753	16 determination, nothing in this subsection (g) prevents an
14754	14754	17 alternative retail electric supplier desiring confidential
14755	14755	18 treatment for such information from filing a formal petition
14756	14756	19 with the Commission seeking confidential treatment for such
14757	14757	20 information.
14758	14758	21 (Source: P.A. 101-590, eff. 1-1-20; 102-958, eff. 1-1-23.)
14759	14759	22 (220 ILCS 5/16-136 new)
14760	14760	23 Sec. 16-136. Co-Location Customers.
14761	14761	24 (a) It is the policy of the State to attract and encourage
14762	14762	25 investment in large-scale infrastructure while fostering a
14763	14763
14764	14764
14765	14765
14766	14766
14767	14767
14768	14768	SB2497 - 410 - LRB104 12224 JDS 22330 b
14769	14769
14770	14770
14771	14771	SB2497- 411 -LRB104 12224 JDS 22330 b SB2497 - 411 - LRB104 12224 JDS 22330 b
14772	14772	SB2497 - 411 - LRB104 12224 JDS 22330 b
14773	14773	1 transition to renewable generation and storage. It is further
14774	14774	2 the policy of the State to encourage new development by
14775	14775	3 minimizing project delays while ensuring that each public
14776	14776	4 utility can operate its system in a safe, reliable manner.
14777	14777	5 (b) Transmission co-location customers.
14778	14778	6 (1) Each electric utility serving at least 50,000
14779	14779	7 customers as of January 1, 2024 shall not require a
14780	14780	8 transmission co-location customer to interconnect with
14781	14781	9 such electric utility's distribution system. Each such
14782	14782	10 electric utility shall not take any action to prevent a
14783	14783	11 transmission co-location customer from interconnecting to
14784	14784	12 such electric utility's transmission system or the
14785	14785	13 transmission assets of a third party.
14786	14786	14 (2) Notwithstanding anything to the contrary, no
14787	14787	15 electric utility shall have an obligation to provide
14788	14788	16 delivery service to a transmission co-location customer.
14789	14789	17 (3) The electrical connections between the end-use
14790	14790	18 customer of power and energy and the generator(s) and as
14791	14791	19 applicable the energy storage system(s) shall be owned and
14792	14792	20 operated by the transmission co-location customer. The
14793	14793	21 electric utility shall not meter or require the
14794	14794	22 interconnection customer or a third party to meter or
14795	14795	23 provide metering information related to power and energy
14796	14796	24 flow on the electric connections between the end-use
14797	14797	25 customer of power and energy and the generator(s) and as
14798	14798	26 applicable the energy storage system(s). However, nothing
14799	14799
14800	14800
14801	14801
14802	14802
14803	14803
14804	14804	SB2497 - 411 - LRB104 12224 JDS 22330 b
14805	14805
14806	14806
14807	14807	SB2497- 412 -LRB104 12224 JDS 22330 b SB2497 - 412 - LRB104 12224 JDS 22330 b
14808	14808	SB2497 - 412 - LRB104 12224 JDS 22330 b
14809	14809	1 in this subsection shall be construed to prevent metering
14810	14810	2 of the imports and exports of the transmission co-location
14811	14811	3 customer.
14812	14812	4 (c) Distribution co-location customers.
14813	14813	5 (1) Within 120 days of the effective date of this
14814	14814	6 amendatory Act, the Commission shall initiate a rulemaking
14815	14815	7 regarding interconnection of distribution co-location
14816	14816	8 customers. At minimum, such rulemaking shall include:
14817	14817	9 (A) A process for studying the distribution
14818	14818	10 co-location customer as a single unit rather the load
14819	14819	11 and generation or storage individually or in any
14820	14820	12 combination other than all together and a requirement
14821	14821	13 that no electric utility may refuse interconnection of
14822	14822	14 a distribution co-location customer that the electric
14823	14823	15 utility determines may be safely interconnected to the
14824	14824	16 electric utility's distribution system;
14825	14825	17 (B) A requirement that the electric utility
14826	14826	18 provide a single meter measuring the aggregate power
14827	14827	19 and energy import or export of the distribution
14828	14828	20 co-location customer and a prohibition on the electric
14829	14829	21 utility metering or causing a third party to meter
14830	14830	22 power and energy flow on the electric connections
14831	14831	23 between the end-use customer of power and energy and
14832	14832	24 the generator(s) and as applicable the energy storage
14833	14833	25 system(s); and
14834	14834	26 (C) A standard interconnection agreement with
14835	14835
14836	14836
14837	14837
14838	14838
14839	14839
14840	14840	SB2497 - 412 - LRB104 12224 JDS 22330 b
14841	14841
14842	14842
14843	14843	SB2497- 413 -LRB104 12224 JDS 22330 b SB2497 - 413 - LRB104 12224 JDS 22330 b
14844	14844	SB2497 - 413 - LRB104 12224 JDS 22330 b
14845	14845	1 commercially reasonable and financeable terms and
14846	14846	2 conditions.
14847	14847	3 (2) The electrical connections between the end-use
14848	14848	4 customer of power and energy and the generator(s) and as
14849	14849	5 applicable the energy storage system(s) shall be owned and
14850	14850	6 operated by the distribution co-location customer.
14851	14851	7 (3) The electric utility shall not prevent any or all
14852	14852	8 of the generators or storage that comprises a co-location
14853	14853	9 customer from participating in wholesale markets to the
14854	14854	10 extent such generator(s) or storage qualifies under the
14855	14855	11 applicable requirements of PJM Interconnection, LLC or
14856	14856	12 Midcontinent ISO, Inc.
14857	14857	13 (4) All billing determinants assessed or measured by
14858	14858	14 the electric utility shall be based exclusively on the
14859	14859	15 import and export of the distribution co-location customer
14860	14860	16 taken as a whole;
14861	14861	17 (d) Each transmission co-location customer and
14862	14862	18 distribution co-location customer shall, not later than April
14863	14863	19 30 of each year, provide in a form prescribed by the Commission
14864	14864	20 information about the renewable resources (including renewable
14865	14865	21 energy credits) used to provide power and energy or associated
14866	14866	22 with power and energy consumed by the load portion of the
14867	14867	23 transmission co-location customer or distribution co-location
14868	14868	24 customer.
14869	14869	25 (220 ILCS 5/Art. XXIII heading new)
14870	14870
14871	14871
14872	14872
14873	14873
14874	14874
14875	14875	SB2497 - 413 - LRB104 12224 JDS 22330 b
14876	14876
14877	14877
14878	14878	SB2497- 414 -LRB104 12224 JDS 22330 b SB2497 - 414 - LRB104 12224 JDS 22330 b
14879	14879	SB2497 - 414 - LRB104 12224 JDS 22330 b
14880	14880	1 ARTICLE XXIII. OFFICE OF INTERCONNECTION AND RENEWABLE
14881	14881	2 DEVELOPMENT
14882	14882	3 (220 ILCS 5/23-101 new)
14883	14883	4 Sec. 23-101. Findings and intent. The General Assembly
14884	14884	5 finds and declares:
14885	14885	6 (1) The ability of the Commission and the Illinois
14886	14886	7 Power Agency to ensure long-term benefits from community
14887	14887	8 renewable generation projects and distributed renewable
14888	14888	9 energy generation devices is limited. For Illinois
14889	14889	10 consumers to continue to receive the substantial financial
14890	14890	11 and environmental benefits of deployment of distributed
14891	14891	12 renewable generation resources, including devices paired
14892	14892	13 with energy storage, the Commission must gather additional
14893	14893	14 data and proactively identify barriers.
14894	14894	15 (2) To date, as a result of the Future Energy Jobs Act
14895	14895	16 and the Climate and Equitable Jobs Act, tens of thousands
14896	14896	17 of Illinois retail customers of all sizes have experienced
14897	14897	18 the benefits of new renewable generation.
14898	14898	19 (3) However, as renewable generation deployment
14899	14899	20 increases, but remains short of the goals set by the
14900	14900	21 Climate and Equitable Jobs Act, it is critical that the
14901	14901	22 Commission proactively identify and address barriers to
14902	14902	23 achieving those goals.
14903	14903	24 (4) The Commission should promote the efficient
14904	14904	25 deployment of distributed renewable generation resources.
14905	14905
14906	14906
14907	14907
14908	14908
14909	14909
14910	14910	SB2497 - 414 - LRB104 12224 JDS 22330 b
14911	14911
14912	14912
14913	14913	SB2497- 415 -LRB104 12224 JDS 22330 b SB2497 - 415 - LRB104 12224 JDS 22330 b
14914	14914	SB2497 - 415 - LRB104 12224 JDS 22330 b
14915	14915	1 (220 ILCS 5/23-105 new)
14916	14916	2 Sec. 23-105. Definitions. In this Article:
14917	14917	3 "Director" means the Director of the Office of
14918	14918	4 Interconnection and Renewable Development.
14919	14919	5 "Distributed renewable energy resources" means a community
14920	14920	6 renewable generation device or a distributed renewable energy
14921	14921	7 generation device as those terms are defined in Section 1-10
14922	14922	8 of the Illinois Power Agency Act. "Distributed renewable
14923	14923	9 energy resource" includes storage paired with a community
14924	14924	10 renewable generation device or a distributed renewable energy
14925	14925	11 generation device.
14926	14926	12 "Energy storage system" has the meaning given to that term
14927	14927	13 in Section 1-10 of the Illinois Power Agency Act.
14928	14928	14 "Office" means the Office of Interconnection and Renewable
14929	14929	15 Development.
14930	14930	16 "Utility-scale solar project" and "utility-scale wind
14931	14931	17 project" have the meanings given to those terms in Section
14932	14932	18 1-10 of the Illinois Power Agency Act.
14933	14933	19 (220 ILCS 5/23-110 new)
14934	14934	20 Sec. 23-110. Office of Interconnection and Renewable
14935	14935	21 Development.
14936	14936	22 (a) Within 90 days after the effective date of this
14937	14937	23 amendatory Act of the 104th General Assembly, subject to
14938	14938	24 appropriation, the Commission shall establish an Office of
14939	14939
14940	14940
14941	14941
14942	14942
14943	14943
14944	14944	SB2497 - 415 - LRB104 12224 JDS 22330 b
14945	14945
14946	14946
14947	14947	SB2497- 416 -LRB104 12224 JDS 22330 b SB2497 - 416 - LRB104 12224 JDS 22330 b
14948	14948	SB2497 - 416 - LRB104 12224 JDS 22330 b
14949	14949	1 Interconnection and Renewable Development and employ a
14950	14950	2 Director of Interconnection and Renewable Development to
14951	14951	3 oversee the Office. The Director shall have authority to
14952	14952	4 employ or otherwise retain at least 3 professionals dedicated
14953	14953	5 to the task of actively seeking out ways to identify barriers
14954	14954	6 to deployment of distributed renewable energy resources.
14955	14955	7 (b) The Office shall actively seek input from all
14956	14956	8 interested parties and shall develop a thorough understanding
14957	14957	9 and critical analyses of the tools and techniques used to
14958	14958	10 promote development and remove barriers to development of the
14959	14959	11 projects and devices. The Office shall take these steps for
14960	14960	12 interconnections involving distributed renewable energy
14961	14961	13 resources, energy storage systems, utility-scale wind
14962	14962	14 projects, and utility-scale solar projects, including
14963	14963	15 interconnections to a distribution system or a transmission
14964	14964	16 system.
14965	14965	17 (c) The Office shall monitor interconnection between
14966	14966	18 electric utilities and applicants for interconnection and
14967	14967	19 interconnection customers. The Office shall request, and
14968	14968	20 electric utilities shall promptly provide, information and
14969	14969	21 records related to pending, successful, and terminated
14970	14970	22 interconnections. The Office shall include at least one
14971	14971	23 employee with a background in engineering of distribution
14972	14972	24 interconnections. The Office shall take these steps for
14973	14973	25 interconnections involving distributed renewable energy
14974	14974	26 resources, energy storage systems, utility-scale wind
14975	14975
14976	14976
14977	14977
14978	14978
14979	14979
14980	14980	SB2497 - 416 - LRB104 12224 JDS 22330 b
14981	14981
14982	14982
14983	14983	SB2497- 417 -LRB104 12224 JDS 22330 b SB2497 - 417 - LRB104 12224 JDS 22330 b
14984	14984	SB2497 - 417 - LRB104 12224 JDS 22330 b
14985	14985	1 projects, and utility-scale solar projects, including
14986	14986	2 interconnections to a distribution system or a transmission
14987	14987	3 system.
14988	14988	4 (d) The Office shall employ an Ombudsperson who, in
14989	14989	5 addition to the roles described in paragraph (2) of subsection
14990	14990	6 (h-5) of Section 16-107.5, is responsible for oversight of all
14991	14991	7 utility's compliance with the rules adopted under subsection
14992	14992	8 (h) of Section 16-107.5 and any utility interconnection
14993	14993	9 policies or procedures. The Ombudsperson may request, and each
14994	14994	10 electric utility shall timely provide, records and information
14995	14995	11 as the Ombudsperson may request from time to time to carry out
14996	14996	12 his or her duties under this subsection or subsection (m) of
14997	14997	13 Section 1-93 of the Illinois Power Agency Act. At any time, the
14998	14998	14 Ombudsperson may issue a report to the Commission detailing
14999	14999	15 any suspected violations of this Act or rules adopted by the
15000	15000	16 Commission under this Act concerning interconnection processes
15001	15001	17 or a particular interconnection.
15002	15002	18 (220 ILCS 5/23-115 new)
15003	15003	19 Sec. 23-115. Annual report. The Office shall collect and
15004	15004	20 annually report to the Commission information about net
15005	15005	21 metering under Section 16-107.5. The Office shall quantify the
15006	15006	22 totality of retail customer benefits from net metering,
15007	15007	23 including an assessment of customer value from net metering
15008	15008	24 and net metering offered under subsection (l) of Section
15009	15009	25 16-107.5.
15010	15010
15011	15011
15012	15012
15013	15013
15014	15014
15015	15015	SB2497 - 417 - LRB104 12224 JDS 22330 b
15016	15016
15017	15017
15018	15018	SB2497- 418 -LRB104 12224 JDS 22330 b SB2497 - 418 - LRB104 12224 JDS 22330 b
15019	15019	SB2497 - 418 - LRB104 12224 JDS 22330 b
15020	15020	1 (220 ILCS 5/23-120 new)
15021	15021	2 Sec. 23-120. Interconnection Working Group.
15022	15022	3 (a) The Ombudsperson shall provide to the Commission with
15023	15023	4 a biennial update on consensus and non-consensus items
15024	15024	5 addressed in the Interconnection Working Group. The
15025	15025	6 Ombudsperson shall provide recommendation for Commission
15026	15026	7 actions and the proposed timing of the actions based on the
15027	15027	8 findings of the Interconnection Working Group.
15028	15028	9 (b) In collaboration with the Ethics Officer of the
15029	15029	10 Commission, the Office shall develop policies and procedures
15030	15030	11 to facilitate employees of the Office in leading the
15031	15031	12 Interconnection Working Group described in subsection (h-5) of
15032	15032	13 Section 16-107.5 without interference with docketed
15033	15033	14 proceedings. The policies and procedures developed under this
15034	15034	15 subsection shall be designed to allow the Interconnection
15035	15035	16 Working Group to work without interruption.
15036	15036	17 Section 99. Effective date. This Act takes effect upon
15037	15037	18 becoming law.
15038	15038	SB2497- 419 -LRB104 12224 JDS 22330 b 1 INDEX 2 Statutes amended in order of appearance 3 20 ILCS 3855/1-54 20 ILCS 3855/1-105 20 ILCS 3855/1-206 20 ILCS 3855/1-757 20 ILCS 3855/1-93 new8 20 ILCS 3855/1-94 new9 220 ILCS 5/3-105from Ch. 111 2/3, par. 3-10510 220 ILCS 5/8-513 new11 220 ILCS 5/16-10212 220 ILCS 5/16-107.513 220 ILCS 5/16-107.614 220 ILCS 5/16-107.8 new15 220 ILCS 5/16-107.9 new16 220 ILCS 5/16-107.10 new17 220 ILCS 5/16-107.11 new18 220 ILCS 5/16-10819 220 ILCS 5/16-111.520 220 ILCS 5/16-11521 220 ILCS 5/16-136 new22 220 ILCS 5/Art. XXIII 23 heading new24 220 ILCS 5/23-101 new25 220 ILCS 5/23-105 new SB2497- 420 -LRB104 12224 JDS 22330 b SB2497- 419 -LRB104 12224 JDS 22330 b SB2497 - 419 - LRB104 12224 JDS 22330 b 1 INDEX 2 Statutes amended in order of appearance 3 20 ILCS 3855/1-5 4 20 ILCS 3855/1-10 5 20 ILCS 3855/1-20 6 20 ILCS 3855/1-75 7 20 ILCS 3855/1-93 new 8 20 ILCS 3855/1-94 new 9 220 ILCS 5/3-105 from Ch. 111 2/3, par. 3-105 10 220 ILCS 5/8-513 new 11 220 ILCS 5/16-102 12 220 ILCS 5/16-107.5 13 220 ILCS 5/16-107.6 14 220 ILCS 5/16-107.8 new 15 220 ILCS 5/16-107.9 new 16 220 ILCS 5/16-107.10 new 17 220 ILCS 5/16-107.11 new 18 220 ILCS 5/16-108 19 220 ILCS 5/16-111.5 20 220 ILCS 5/16-115 21 220 ILCS 5/16-136 new 22 220 ILCS 5/Art. XXIII 23 heading new 24 220 ILCS 5/23-101 new 25 220 ILCS 5/23-105 new SB2497- 420 -LRB104 12224 JDS 22330 b SB2497 - 420 - LRB104 12224 JDS 22330 b
15039	15039	SB2497- 419 -LRB104 12224 JDS 22330 b SB2497 - 419 - LRB104 12224 JDS 22330 b
15040	15040	SB2497 - 419 - LRB104 12224 JDS 22330 b
15041	15041	1 INDEX
15042	15042	2 Statutes amended in order of appearance
15043	15043	3 20 ILCS 3855/1-5
15044	15044	4 20 ILCS 3855/1-10
15045	15045	5 20 ILCS 3855/1-20
15046	15046	6 20 ILCS 3855/1-75
15047	15047	7 20 ILCS 3855/1-93 new
15048	15048	8 20 ILCS 3855/1-94 new
15049	15049	9 220 ILCS 5/3-105 from Ch. 111 2/3, par. 3-105
15050	15050	10 220 ILCS 5/8-513 new
15051	15051	11 220 ILCS 5/16-102
15052	15052	12 220 ILCS 5/16-107.5
15053	15053	13 220 ILCS 5/16-107.6
15054	15054	14 220 ILCS 5/16-107.8 new
15055	15055	15 220 ILCS 5/16-107.9 new
15056	15056	16 220 ILCS 5/16-107.10 new
15057	15057	17 220 ILCS 5/16-107.11 new
15058	15058	18 220 ILCS 5/16-108
15059	15059	19 220 ILCS 5/16-111.5
15060	15060	20 220 ILCS 5/16-115
15061	15061	21 220 ILCS 5/16-136 new
15062	15062	22 220 ILCS 5/Art. XXIII
15063	15063	23 heading new
15064	15064	24 220 ILCS 5/23-101 new
15065	15065	25 220 ILCS 5/23-105 new
15066	15066	SB2497- 420 -LRB104 12224 JDS 22330 b SB2497 - 420 - LRB104 12224 JDS 22330 b
15067	15067	SB2497 - 420 - LRB104 12224 JDS 22330 b
15068	15068
15069	15069
15070	15070
15071	15071
15072	15072
15073	15073	SB2497 - 418 - LRB104 12224 JDS 22330 b
15074	15074
15075	15075
15076	15076
15077	15077	SB2497- 419 -LRB104 12224 JDS 22330 b SB2497 - 419 - LRB104 12224 JDS 22330 b
15078	15078	SB2497 - 419 - LRB104 12224 JDS 22330 b
15079	15079	1 INDEX
15080	15080	2 Statutes amended in order of appearance
15081	15081	3 20 ILCS 3855/1-5
15082	15082	4 20 ILCS 3855/1-10
15083	15083	5 20 ILCS 3855/1-20
15084	15084	6 20 ILCS 3855/1-75
15085	15085	7 20 ILCS 3855/1-93 new
15086	15086	8 20 ILCS 3855/1-94 new
15087	15087	9 220 ILCS 5/3-105 from Ch. 111 2/3, par. 3-105
15088	15088	10 220 ILCS 5/8-513 new
15089	15089	11 220 ILCS 5/16-102
15090	15090	12 220 ILCS 5/16-107.5
15091	15091	13 220 ILCS 5/16-107.6
15092	15092	14 220 ILCS 5/16-107.8 new
15093	15093	15 220 ILCS 5/16-107.9 new
15094	15094	16 220 ILCS 5/16-107.10 new
15095	15095	17 220 ILCS 5/16-107.11 new
15096	15096	18 220 ILCS 5/16-108
15097	15097	19 220 ILCS 5/16-111.5
15098	15098	20 220 ILCS 5/16-115
15099	15099	21 220 ILCS 5/16-136 new
15100	15100	22 220 ILCS 5/Art. XXIII
15101	15101	23 heading new
15102	15102	24 220 ILCS 5/23-101 new
15103	15103	25 220 ILCS 5/23-105 new
15104	15104
15105	15105
15106	15106
15107	15107
15108	15108
15109	15109	SB2497 - 419 - LRB104 12224 JDS 22330 b
15110	15110
15111	15111
15112	15112	SB2497- 420 -LRB104 12224 JDS 22330 b SB2497 - 420 - LRB104 12224 JDS 22330 b
15113	15113	SB2497 - 420 - LRB104 12224 JDS 22330 b
15114	15114
15115	15115
15116	15116
15117	15117
15118	15118
15119	15119	SB2497 - 420 - LRB104 12224 JDS 22330 b