SB0135sam003 101ST GENERAL ASSEMBLY

Sen. David Koehler

Filed: 4/5/2019

10100SB0135sam003 LRB101 06818 RJF 59250 a

AMENDMENT TO SENATE BILL 135

AMENDMENT NO. ______. Amend Senate Bill 135, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 1. This Act may be referred to as the Competitive Clean Energy Act.

Section 3. Findings. The General Assembly finds the following:

(1) The State of Illinois seeks to be a national leader in promoting electricity generation that emits zero greenhouse gas emissions, consistent with targets set under the Paris Climate Agreement. The State of Illinois has joined 22 states and the territory of Puerto Rico in the U.S. Climate Alliance and should pursue immediate action on policies that will grow out the clean energy sector while minimizing consumer impacts.

(2) The policy of the State of Illinois should be to adopt electricity sector carbon emission targets aimed at eliminating all carbon emission from our energy supply by 2050, while encouraging job growth and private sector innovation.

(3) The uniform American experience is that competitive markets drive innovation in the electricity sector and that competitive retail electric markets have delivered extraordinary benefits for residential, commercial, and industrial consumers, including tens of billions of dollars in savings as a result of customer choice. Illinois seeks to use these same market principles in its quest to eliminate carbon emissions from its electricity sector. Market-based emissions trading programs have also been able to quickly and efficiently reduce the emission of harmful air pollutants. The United States Environmental Protection Agency's creation of marketable sulfur dioxide and nitrogen oxide emissions credits has been an enormously successful tool for combating acid rain and ground-level ozone.

(4) The State of Illinois has determined that, going forward, every increment of clean electricity has the same value to fighting climate change. Therefore, it is the policy of the State to embrace a technologically inclusive approach to decarbonizing its electricity sector, wherever possible.

(5) Market solutions incentivize potential developers, innovators, and entrepreneurs to invest in zero carbon resources, and should be embraced. It is the policy of the State of Illinois to continue to promote the development of a competitive clean energy market, with procurement targets, that allows all projects and ideas to compete against one another on a level playing field to deliver the highest value clean energy solutions at the lowest cost to consumers.

(6) The lowest cost path to decarbonization is best identified by providing opportunities for innovation and broad competition among all clean energy resource types. Achieving this State's clean energy goals while protecting consumers and jobs will require harnessing the power of the competitive marketplace to find the fastest, lowest cost, and most effective decarbonization solutions. Illinois energy policy should continue to empower those who choose to pursue competitive energy market opportunities and promote the development of the competitive market to leverage market benefits and enhance consumer access, while lowering electric bills.

(7) The Illinois clean energy market of the future should be structured to compensate existing carbon-free resources for their environmental attributes, as well as allow project financing for, and support the development of, new clean energy resources.

(8) It is in the public interest to accelerate the procurement of clean energy resources when prices warrant. It is also in the public interest to allow individual consumers, municipalities, and other entities to exceed the portion of carbon-free energy supply mandated by the State through voluntary participation in a clean energy market.

(9) Although technology-specific subsidies can drive clean energy investment, they come at a substantial cost to consumers. Limiting competition between clean energy resources improperly shifts technology, market, and operational risks away from generators and onto taxpayers and consumers. Issuing additional direct subsidies to specific resources or technologies is an impediment to identifying and benefiting from the lowest cost decarbonization solutions and imposes needless costs on electricity consumers in Illinois. Instead, Illinois' policy is to procure the lowest cost environmental attributes from the full range of available carbon-free resources on a fair and competitive basis.

(10) While the State of Illinois acknowledges the value of existing contractual obligations with clean energy resources, the lack of integration between Illinois' renewable portfolio standard, clean coal portfolio standard, zero emissions standard, and energy efficiency portfolio standards causes inefficiencies and hinders cost-effective progress towards Illinois' energy goals. Those programs should be consolidated into a single Clean Attributes Portfolio Standard.

Section 5. The Public Utilities Act is amended by changing Section 16-111.5 and by adding Sections 3-127, 3-128, 3-129, 3-130, and 3-131 as follows:

(220 ILCS 5/3-127 new)

Sec. 3-127. Clean coal resource. "Clean coal resource" means an electric generating facility that uses primarily coal as a feedstock and that captures and sequesters carbon dioxide emissions or reduces carbon dioxide emissions through enhanced operating efficiency, unit retirement, or fuel source conversion. Clean coal resources that reduce carbon dioxide emissions through enhanced operating efficiency, unit retirement, or fuel source conversion must show evidence of verified reductions in carbon dioxide emissions by comparing annual emissions against a baseline of the carbon dioxide emissions for the effected generating units reported. The baseline shall be calendar year 2015. Reductions of carbon dioxide emissions must be verified by a third party that is a professional engineer licensed by the State of Illinois.

(220 ILCS 5/3-128 new)

Sec. 3-128. Clean energy attribute credit. "Clean energy attribute credit" means a credit that represents the environmental attributes of one megawatt hour of energy reduction or generation produced from a clean energy resource.

(220 ILCS 5/3-129 new)

Sec. 3-129. Clean energy resource. "Clean energy resource" means any resource consistent with the definitions of renewable energy resources, clean coal resources, clean coal facility, zero emissions resources, demand-response resources, and energy efficiency resources, as defined in this Act or the Illinois Power Agency Act, and any other resources as identified by the Illinois Power Agency as cost effectively reducing carbon emissions in this State.

(220 ILCS 5/3-130 new)

Sec. 3-130. New clean energy resource. "New clean energy resource" means a clean energy resource that has not begun operation at the time it contracts to sell clean energy attribute credits at a clean energy attribute credit procurement event.

(220 ILCS 5/3-131 new)

Sec. 3-131. Social cost of carbon. "Social cost of carbon" means the cost of $16.50 per megawatt hour, which is based on the federal Interagency Working Group on Social Cost of Carbon's price in the August 2016 technical update using a 3% discount rate, adjusted for inflation for each year of the program. Beginning with the delivery year commencing June 1, 2020, the price per megawatt hour shall increase by $1 per megawatt hour and continue to increase by an additional $1 per megawatt hour each delivery year thereafter.

(220 ILCS 5/16-111.5)

Sec. 16-111.5. Provisions relating to procurement.

(a) An electric utility that on December 31, 2005 served at least 100,000 customers in Illinois shall procure power and energy for its eligible retail customers in accordance with the applicable provisions set forth in Section 1-75 of the Illinois Power Agency Act and this Section. Beginning with the delivery year commencing on June 1, 2017, such electric utility shall also procure zero emission credits from zero emission facilities in accordance with the applicable provisions set forth in Section 1-75 of the Illinois Power Agency Act, and, for years beginning on or after June 1, 2017, the utility shall procure renewable energy resources in accordance with the applicable provisions set forth in Section 1-75 of the Illinois Power Agency Act and this Section. A small multi-jurisdictional electric utility that on December 31, 2005 served less than 100,000 customers in Illinois may elect to procure power and energy for all or a portion of its eligible Illinois retail customers in accordance with the applicable provisions set forth in this Section and Section 1-75 of the Illinois Power Agency Act. This Section shall not apply to a small multi-jurisdictional utility until such time as a small multi-jurisdictional utility requests the Illinois Power Agency to prepare a procurement plan for its eligible retail customers. "Eligible retail customers" for the purposes of this Section means those retail customers that purchase power and energy from the electric utility under fixed-price bundled service tariffs, other than those retail customers whose service is declared or deemed competitive under Section 16-113 and those other customer groups specified in this Section, including self-generating customers, customers electing hourly pricing, or those customers who are otherwise ineligible for fixed-price bundled tariff service. For those customers that are excluded from the procurement plan's electric supply service requirements, and the utility shall procure any supply requirements, including capacity, ancillary services, and hourly priced energy, in the applicable markets as needed to serve those customers, provided that the utility may include in its procurement plan load requirements for the load that is associated with those retail customers whose service has been declared or deemed competitive pursuant to Section 16-113 of this Act to the extent that those customers are purchasing power and energy during one of the transition periods identified in subsection (b) of Section 16-113 of this Act.

(b) A procurement plan shall be prepared for each electric utility consistent with the applicable requirements of the Illinois Power Agency Act and this Section. For purposes of this Section, Illinois electric utilities that are affiliated by virtue of a common parent company are considered to be a single electric utility. Small multi-jurisdictional utilities may request a procurement plan for a portion of or all of its Illinois load. Each procurement plan shall analyze the projected balance of supply and demand for those retail customers to be included in the plan's electric supply service requirements over a 5-year period, with the first planning year beginning on June 1 of the year following the year in which the plan is filed. The plan shall specifically identify the wholesale products to be procured following plan approval, and shall follow all the requirements set forth in the Public Utilities Act and all applicable State and federal laws, statutes, rules, or regulations, as well as Commission orders. Nothing in this Section precludes consideration of contracts longer than 5 years and related forecast data. Unless specified otherwise in this Section, in the procurement plan or in the implementing tariff, any procurement occurring in accordance with this plan shall be competitively bid through a request for proposals process. Approval and implementation of the procurement plan shall be subject to review and approval by the Commission according to the provisions set forth in this Section. A procurement plan shall include each of the following components:

(1) Hourly load analysis. This analysis shall include:

(i) multi-year historical analysis of hourly loads;

(ii) switching trends and competitive retail market analysis;

(iii) known or projected changes to future loads; and

(iv) growth forecasts by customer class.

(2) Analysis of the impact of any demand side and renewable energy initiatives. This analysis shall include:

(i) the impact of demand response programs and energy efficiency programs, both current and projected; for small multi-jurisdictional utilities, the impact of demand response and energy efficiency programs approved pursuant to Section 8-408 of this Act, both current and projected; and

(ii) supply side needs that are projected to be offset by purchases of renewable energy resources, if any.

(3) A plan for meeting the expected load requirements that will not be met through preexisting contracts. This plan shall include:

(i) definitions of the different Illinois retail customer classes for which supply is being purchased;

(ii) the proposed mix of demand-response products for which contracts will be executed during the next year. For small multi-jurisdictional electric utilities that on December 31, 2005 served fewer than 100,000 customers in Illinois, these shall be defined as demand-response products offered in an energy efficiency plan approved pursuant to Section 8-408 of this Act. The cost-effective demand-response measures shall be procured whenever the cost is lower than procuring comparable capacity products, provided that such products shall:

(A) be procured by a demand-response provider from those retail customers included in the plan's electric supply service requirements;

(B) at least satisfy the demand-response requirements of the regional transmission organization market in which the utility's service territory is located, including, but not limited to, any applicable capacity or dispatch requirements;

(C) provide for customers' participation in the stream of benefits produced by the demand-response products;

(D) provide for reimbursement by the demand-response provider of the utility for any costs incurred as a result of the failure of the supplier of such products to perform its obligations thereunder; and

(E) meet the same credit requirements as apply to suppliers of capacity, in the applicable regional transmission organization market;

(iii) monthly forecasted system supply requirements, including expected minimum, maximum, and average values for the planning period;

(iv) the proposed mix and selection of standard wholesale products for which contracts will be executed during the next year, separately or in combination, to meet that portion of its load requirements not met through pre-existing contracts, including but not limited to monthly 5 x 16 peak period block energy, monthly off-peak wrap energy, monthly 7 x 24 energy, annual 5 x 16 energy, annual off-peak wrap energy, annual 7 x 24 energy, monthly capacity, annual capacity, peak load capacity obligations, capacity purchase plan, and ancillary services;

(v) proposed term structures for each wholesale product type included in the proposed procurement plan portfolio of products; and

(vi) an assessment of the price risk, load uncertainty, and other factors that are associated with the proposed procurement plan; this assessment, to the extent possible, shall include an analysis of the following factors: contract terms, time frames for securing products or services, fuel costs, weather patterns, transmission costs, market conditions, and the governmental regulatory environment; the proposed procurement plan shall also identify alternatives for those portfolio measures that are identified as having significant price risk.

(4) Proposed procedures for balancing loads. The procurement plan shall include, for load requirements included in the procurement plan, the process for (i) hourly balancing of supply and demand and (ii) the criteria for portfolio re-balancing in the event of significant shifts in load.

(5) Long-Term Renewable Resources Procurement Plan. The Agency shall prepare a long-term renewable resources procurement plan for the procurement of renewable energy credits under Sections 1-56 and 1-75 of the Illinois Power Agency Act for delivery beginning in the 2017 delivery year.

(i) The initial long-term renewable resources procurement plan and all subsequent revisions shall be subject to review and approval by the Commission. For the purposes of this Section, "delivery year" has the same meaning as in Section 1-10 of the Illinois Power Agency Act. For purposes of this Section, "Agency" shall mean the Illinois Power Agency.

(ii) The long-term renewable resources planning process shall be conducted as follows:

(A) Electric utilities shall provide a range of load forecasts to the Illinois Power Agency within 45 days of the Agency's request for forecasts, which request shall specify the length and conditions for the forecasts including, but not limited to, the quantity of distributed generation expected to be interconnected for each year.

(B) The Agency shall publish for comment the initial long-term renewable resources procurement plan no later than 120 days after the effective date of this amendatory Act of the 99th General Assembly and shall review, and may revise, the plan at least every 2 years thereafter. To the extent practicable, the Agency shall review and propose any revisions to the long-term renewable energy resources procurement plan in conjunction with the Agency's other planning and approval processes conducted under this Section. The initial long-term renewable resources procurement plan shall:

(aa) Identify the procurement programs and competitive procurement events consistent with the applicable requirements of the Illinois Power Agency Act and shall be designed to achieve the goals set forth in subsection (c) of Section 1-75 of that Act.

(bb) Include a schedule for procurements for renewable energy credits from utility-scale wind projects, utility-scale solar projects, and brownfield site photovoltaic projects consistent with subparagraph (G) of paragraph (1) of subsection (c) of Section 1-75 of the Illinois Power Agency Act.

(cc) Identify the process whereby the Agency will submit to the Commission for review and approval the proposed contracts to implement the programs required by such plan.

Copies of the initial long-term renewable resources procurement plan and all subsequent revisions shall be posted and made publicly available on the Agency's and Commission's websites, and copies shall also be provided to each affected electric utility. An affected utility and other interested parties shall have 45 days following the date of posting to provide comment to the Agency on the initial long-term renewable resources procurement plan and all subsequent revisions. All comments submitted to the Agency shall be specific, supported by data or other detailed analyses, and, if objecting to all or a portion of the procurement plan, accompanied by specific alternative wording or proposals. All comments shall be posted on the Agency's and Commission's websites. During this 45-day comment period, the Agency shall hold at least one public hearing within each utility's service area that is subject to the requirements of this paragraph (5) for the purpose of receiving public comment. Within 21 days following the end of the 45-day review period, the Agency may revise the long-term renewable resources procurement plan based on the comments received and shall file the plan with the Commission for review and approval.

(C) Within 14 days after the filing of the initial long-term renewable resources procurement plan or any subsequent revisions, any person objecting to the plan may file an objection with the Commission. Within 21 days after the filing of the plan, the Commission shall determine whether a hearing is necessary. The Commission shall enter its order confirming or modifying the initial long-term renewable resources procurement plan or any subsequent revisions within 120 days after the filing of the plan by the Illinois Power Agency.

(D) The Commission shall approve the initial long-term renewable resources procurement plan and any subsequent revisions, including expressly the forecast used in the plan and taking into account that funding will be limited to the amount of revenues actually collected by the utilities, if the Commission determines that the plan will reasonably and prudently accomplish the requirements of Section 1-56 and subsection (c) of Section 1-75 of the Illinois Power Agency Act. The Commission shall also approve the process for the submission, review, and approval of the proposed contracts to procure renewable energy credits or implement the programs authorized by the Commission pursuant to a long-term renewable resources procurement plan approved under this Section.

(iii) The Agency or third parties contracted by the Agency shall implement all programs authorized by the Commission in an approved long-term renewable resources procurement plan without further review and approval by the Commission. Third parties shall not begin implementing any programs or receive any payment under this Section until the Commission has approved the contract or contracts under the process authorized by the Commission in item (D) of subparagraph (ii) of paragraph (5) of this subsection (b) and the third party and the Agency or utility, as applicable, have executed the contract. For those renewable energy credits subject to procurement through a competitive bid process under the plan or under the initial forward procurements for wind and solar resources described in subparagraph (G) of paragraph (1) of subsection (c) of Section 1-75 of the Illinois Power Agency Act, the Agency shall follow the procurement process specified in the provisions relating to electricity procurement in subsections (e) through (i) of this Section.

(iv) An electric utility shall recover its costs associated with the procurement of renewable energy credits under this Section through an automatic adjustment clause tariff under subsection (k) of Section 16-108 of this Act. A utility shall not be required to advance any payment or pay any amounts under this Section that exceed the actual amount of revenues collected by the utility under paragraph (6) of subsection (c) of Section 1-75 of the Illinois Power Agency Act and subsection (k) of Section 16-108 of this Act, and contracts executed under this Section shall expressly incorporate this limitation.

(v) For the public interest, safety, and welfare, the Agency and the Commission may adopt rules to carry out the provisions of this Section on an emergency basis immediately following the effective date of this amendatory Act of the 99th General Assembly.

(vi) On or before July 1 of each year, the Commission shall hold an informal hearing for the purpose of receiving comments on the prior year's procurement process and any recommendations for change.

(b-5) (1) Notwithstanding any other provision of this Act or the Illinois Power Agency Act to the contrary, the Illinois Power Agency shall, for each electric utility that serves at least 100,000 retail customers in this State, procure contracts for clean energy attribute credits for all of the utility's retail customers located in this State in accordance with this subsection (b-5). Clean energy attribute credits procured under this subsection (b-5) shall not include clean energy attribute credits for customers served by a utility with fewer than 100,000 retail customers, a municipal utility, or an electric cooperative, unless and until the utility with fewer than 100,000 retail customers, the municipal utility, or the electric cooperative voluntarily submits a written request to be included in the procurement process to the Agency, in which case, the Agency shall use its best efforts to accommodate the request, treating the voluntary participant as if it were an electric utility that serves at least 100,000 retail customers in this State for purposes of the procurement.

(i) Each utility shall timely submit a clean energy attribute credit plan on an annual basis to the Agency. The utility's clean energy attribute credit plan shall identify the projected volumes of total energy consumption by utility customers for the following 10 delivery years and shall report the number and type of clean energy attribute credits it has secured through contracts for each of the forward 10 delivery years. The utility's clean energy attribute credit plan shall also identify the minimum volume of additional clean energy attribute credits that must be procured to comply with this Act in each of the following 10 delivery years.

(ii) Any person may submit to the Agency a bid to purchase clean energy attribute credits at least 90 days prior to any procurement event. The purchase bids shall be effectuated by the Agency.

For purposes of this subsection (b-5), "Agency", "zero emission credit", "zero emission facility", "renewable energy credit", and "renewable energy source" have the meanings set forth in the Illinois Power Agency Act.

(2) The Agency shall conduct clean energy attribute credit procurement events to procure clean energy attribute credits to satisfy the obligations of this subsection (b-5). This obligation shall commence with the procurement for the delivery year beginning June 1, 2020 and terminate with the delivery year commencing June 1, 2050.

The Agency shall conduct one clean energy attribute credit procurement event annually until its obligations under this Act expire. The clean energy attribute credit procurements will secure volumes of clean energy attribute credits from clean energy resources through contracts of one year duration that commence in the delivery year that occurs 3 years after the procurement event. Any owner of a new clean energy resource that secures a contract to sell clean energy attribute credits through a clean energy attribute credit procurement event may elect to extend the term of the contract for up to a total of 7 years at its sole discretion in order to secure project financing for the new clean energy resource.

Prior to the delivery year commencing on June 1, 2023, the Agency shall conduct initial clean energy attribute credit procurement events approximately every 6 months to secure clean energy attribute credits for delivery in the delivery years commencing on June 1, 2020, June 1, 2021, and June 1, 2022, and each subsequent delivery year beginning June 1 until the full 3-year forward period is achieved. Contracts resulting from the initial clean energy attribute credit procurement events will be consistent with the terms set forth in this paragraph (2).

Owners of clean energy resources are eligible to participate in the clean energy attribute credit procurement events conducted by the Agency pursuant to this subsection (b-5) provided that the clean energy resource meets all applicable requirements established by the Agency, which are to be confirmed by the Illinois Commerce Commission. After the effective date of this amendatory Act of the 101st General Assembly, the Agency shall no longer have separate procurement events for renewable energy credits, zero emissions credits, demand response, or volumes of energy efficiency for energy generated or reduced after June 1, 2020. All renewable energy credits, zero emissions credits, demand response, and volumes of energy efficiency for energy generated or reduced after June 1, 2020 previously procured shall be converted into their equivalent clean energy attribute credits by the Agency and considered as applicable against the annual goals set forth in paragraph (3) of this subsection (b-5).

The owner of any clean energy resource that participates in a clean energy attribute credit procurement event conducted under this subsection (b-5) must commit to pay any fees assessed by the Agency to recover the Agency's costs of conducting the procurement events and any related activities.

Clean energy attribute credits may be procured from any party that owns a clean energy resource located in this State, including, but not limited to, municipal utilities, electric cooperatives, competitive retailers, consumers, aggregators, and independent power producers. The results of each clean energy attribute credit procurement event shall be subject to approval by the Commission. Upon Commission approval of the results of a procurement event, each utility shall enter into binding contractual agreements with the winning suppliers.

(3) The annual target procurement of clean energy attribute credits shall: (A) be subject to the cost cap set forth in item (ii) of paragraph (5) of this subsection (b-5); (B) be equal to a percentage of the total electricity consumption reported for each electric utility that serves at least 100,000 retail customers in this State; and (C) increase linearly between June 1, 2020 and May 31, 2051 so that by the delivery year beginning June 1, 2050 the Agency will procure clean energy attribute credits in an amount equal to 100% of the total electricity consumption of each electric utility that serves at least 100,000 retail customers in this State.

The target volume of clean energy attribute credits to be procured under this Act for a utility that serves at least 100,000 retail customers in the State shall be 80% of total annual consumption for the delivery year beginning June 1, 2020 and increase each year thereafter.

All clean energy attribute credits shall be cleared in a competitive auction format such that the lowest price clean energy attribute credits are procured first and at a uniform price, regardless of the technology or age of the clean energy resource that generates the clean energy attribute credit.

In addition to the target procurement, the Agency shall procure additional clean energy attribute credits at each procurement event based on a demand curve for clean energy attribute credits developed by the Agency and approved by the Commission that would result in a higher amount of clean energy attribute credits being procured as prices decrease.

The Agency shall also procure clean energy attribute credits for any person that submits a qualifying bid to purchase at least 90 days prior to any procurement event. A qualifying purchase bid is a bid to purchase the specified number of clean energy attribute credits for a price greater than the clearing price in that auction for which there is a corresponding qualified seller.

(4) Notwithstanding any provision of this subsection (b-5), if determined to be in the public interest, the Agency may, at the Agency's direction or at the direction of the Commission, satisfy the requirements of this subsection (b-5) by procuring clean energy attribute credits volumes under any of the following acquisition alternatives:

(i) procure clean energy attribute credits in a combined auction with other states;

(ii) procure clean energy attribute credits in a combined auction with any inter-regional, independent entity; or

(iii) procure clean energy attribute credits within another centralized auction with a substantially similar auction design determined by the Agency or the Commission to be acceptable under this subsection (b-5).

(5) Customer protections.

(i) Prices awarded for clean energy attribute credits to satisfy the requirements of paragraph (3) of this subsection (b-5) shall be subject to a price cap, which shall be equal to 1.5 times the social cost of carbon.

(ii) The cost to consumers of procuring clean energy attribute credits shall not exceed the sum of the existing cost caps for energy efficiency and demand response, the renewable portfolio standard, the clean coal portfolio standard, and the zero emissions standard.

(iii) As part of its annual procurement process, the Agency shall review the cost cap established under item (ii) of this paragraph (5) to determine if it is insufficient to fund the goals of this subsection (b-5). If the Agency determines that the cost cap is likely to prevent the complete funding of the goals in this Section, the Agency shall propose an alternative cost cap, which the Commission shall review and approve to take effect the following delivery year if the Commission finds that the alternative cost cap is a necessary and cost-effective way to achieve the requirements of this subsection (b-5).

(iv) Clean energy attribute credits shall be cost effective as a result of following the procedures set forth in this subsection (b-5).

(6) Electric utilities subject to the requirements of this subsection (b-5) shall forecast the clean energy attribute credit volume requirements to be covered by the procurement. No later than 45 days after the effective date of this amendatory Act of the 101st General Assembly, each utility shall publish its clean energy attribute credit procurement plan for the delivery year commencing June 1, 2020. The plan shall be consistent with the provisions of this subsection (b-5).

Upon publishing of the clean energy attribute credit procurement plans, copies of the plans shall be posted and made publicly available on the Agency's website. All interested parties shall have 10 days following the date of posting to provide comment on the plans. All comments shall be posted to the Agency's website. Following the end of the comment period, but no more than 60 days after the effective date of this amendatory Act of the 101st General Assembly, the Agency shall revise the plans as necessary based on the comments received, and file each clean energy attribute credit procurement plan with the Commission with a projected schedule for the clean energy attribute credit procurement event.

If the Commission determines that the plans will result in the procurement of clean energy attribute credits consistent with the requirements of this subsection (b-5), then the Commission shall, after notice and hearing, but no later than 45 days after the Agency filed the plan, approve the plans or approve the plans with modification. Those clean energy attribute credit procurement plans applicable to delivery years commencing after June 1, 2020, shall be published, filed, and approved consistent with the timelines and dates set forth in subsection (d).

(7) Notwithstanding anything to the contrary, the Agency and the Commission shall have the authority to take all steps necessary to implement this subsection (b-5) consistent with applicable federal tariffs, and as those tariffs may be changed, replaced, or superseded from time to time.

(8) In order to ensure that Illinois meets its long-term carbon-free energy goals, the quantity of clean energy attribute credits procured shall be total utility electricity multiplied by a linearly increasing goal to 100% by 2050. The total procured shall be no less than the sum of nuclear generation in service on January 1, 2019 and the renewable portfolio standard in effect on the effective date of this amendatory Act of the 101st General Assembly.

(9) The Agency and Commission shall design, develop, and implement the clean energy attribute credit program in a way that promotes the development of the competitive retail electric market in this State.

(10) Notwithstanding anything to the contrary, nothing in this subsection (b-5) shall alter any person's rights or obligations under contracts executed prior to the effective date of this amendatory Act of the 101st General Assembly for the purchase or sale of credits under Illinois' renewable portfolio standard, clean coal portfolio standard, zero emissions standard, or energy efficiency portfolio standard programs, and the quantities procured under such contracts shall be subtracted from the minimum quantity of clean energy attribute credits to be procured on behalf of that utility's customers.

(c) The procurement process set forth in Section 1-75 of the Illinois Power Agency Act and subsection (e) of this Section shall be administered by a procurement administrator and monitored by a procurement monitor.

(1) The procurement administrator shall:

(i) design the final procurement process in accordance with Section 1-75 of the Illinois Power Agency Act and subsection (e) of this Section following Commission approval of the procurement plan;

(ii) develop benchmarks in accordance with subsection (e)(3) to be used to evaluate bids; these benchmarks shall be submitted to the Commission for review and approval on a confidential basis prior to the procurement event;

(iii) serve as the interface between the electric utility and suppliers;

(iv) manage the bidder pre-qualification and registration process;

(v) obtain the electric utilities' agreement to the final form of all supply contracts and credit collateral agreements;

(vi) administer the request for proposals process;

(vii) have the discretion to negotiate to determine whether bidders are willing to lower the price of bids that meet the benchmarks approved by the Commission; any post-bid negotiations with bidders shall be limited to price only and shall be completed within 24 hours after opening the sealed bids and shall be conducted in a fair and unbiased manner; in conducting the negotiations, there shall be no disclosure of any information derived from proposals submitted by competing bidders; if information is disclosed to any bidder, it shall be provided to all competing bidders;

(viii) maintain confidentiality of supplier and bidding information in a manner consistent with all applicable laws, rules, regulations, and tariffs;

(ix) submit a confidential report to the Commission recommending acceptance or rejection of bids;

(x) notify the utility of contract counterparties and contract specifics; and

(xi) administer related contingency procurement events.

(2) The procurement monitor, who shall be retained by the Commission, shall:

(i) monitor interactions among the procurement administrator, suppliers, and utility;

(ii) monitor and report to the Commission on the progress of the procurement process;

(iii) provide an independent confidential report to the Commission regarding the results of the procurement event;

(iv) assess compliance with the procurement plans approved by the Commission for each utility that on December 31, 2005 provided electric service to at least 100,000 customers in Illinois and for each small multi-jurisdictional utility that on December 31, 2005 served less than 100,000 customers in Illinois;

(v) preserve the confidentiality of supplier and bidding information in a manner consistent with all applicable laws, rules, regulations, and tariffs;

(vi) provide expert advice to the Commission and consult with the procurement administrator regarding issues related to procurement process design, rules, protocols, and policy-related matters; and

(vii) consult with the procurement administrator regarding the development and use of benchmark criteria, standard form contracts, credit policies, and bid documents.

(d) Except as provided in subsection (j), the planning process shall be conducted as follows:

(1) Beginning in 2008, each Illinois utility procuring power pursuant to this Section shall annually provide a range of load forecasts to the Illinois Power Agency by July 15 of each year, or such other date as may be required by the Commission or Agency. The load forecasts shall cover the 5-year procurement planning period for the next procurement plan and shall include hourly data representing a high-load, low-load, and expected-load scenario for the load of those retail customers included in the plan's electric supply service requirements. The utility shall provide supporting data and assumptions for each of the scenarios.

(2) Beginning in 2008, the Illinois Power Agency shall prepare a procurement plan by August 15th of each year, or such other date as may be required by the Commission. The procurement plan shall identify the portfolio of demand-response and power and energy products to be procured. Cost-effective demand-response measures shall be procured as set forth in item (iii) of subsection (b) of this Section. Copies of the procurement plan shall be posted and made publicly available on the Agency's and Commission's websites, and copies shall also be provided to each affected electric utility. An affected utility shall have 30 days following the date of posting to provide comment to the Agency on the procurement plan. Other interested entities also may comment on the procurement plan. All comments submitted to the Agency shall be specific, supported by data or other detailed analyses, and, if objecting to all or a portion of the procurement plan, accompanied by specific alternative wording or proposals. All comments shall be posted on the Agency's and Commission's websites. During this 30-day comment period, the Agency shall hold at least one public hearing within each utility's service area for the purpose of receiving public comment on the procurement plan. Within 14 days following the end of the 30-day review period, the Agency shall revise the procurement plan as necessary based on the comments received and file the procurement plan with the Commission and post the procurement plan on the websites.

(3) Within 5 days after the filing of the procurement plan, any person objecting to the procurement plan shall file an objection with the Commission. Within 10 days after the filing, the Commission shall determine whether a hearing is necessary. The Commission shall enter its order confirming or modifying the procurement plan within 90 days after the filing of the procurement plan by the Illinois Power Agency.

(4) The Commission shall approve the procurement plan, including expressly the forecast used in the procurement plan, if the Commission determines that it will ensure adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost over time, taking into account any benefits of price stability.

(e) The procurement process shall include each of the following components:

(1) Solicitation, pre-qualification, and registration of bidders. The procurement administrator shall disseminate information to potential bidders to promote a procurement event, notify potential bidders that the procurement administrator may enter into a post-bid price negotiation with bidders that meet the applicable benchmarks, provide supply requirements, and otherwise explain the competitive procurement process. In addition to such other publication as the procurement administrator determines is appropriate, this information shall be posted on the Illinois Power Agency's and the Commission's websites. The procurement administrator shall also administer the prequalification process, including evaluation of credit worthiness, compliance with procurement rules, and agreement to the standard form contract developed pursuant to paragraph (2) of this subsection (e). The procurement administrator shall then identify and register bidders to participate in the procurement event.

(2) Standard contract forms and credit terms and instruments. The procurement administrator, in consultation with the utilities, the Commission, and other interested parties and subject to Commission oversight, shall develop and provide standard contract forms for the supplier contracts that meet generally accepted industry practices. Standard credit terms and instruments that meet generally accepted industry practices shall be similarly developed. The procurement administrator shall make available to the Commission all written comments it receives on the contract forms, credit terms, or instruments. If the procurement administrator cannot reach agreement with the applicable electric utility as to the contract terms and conditions, the procurement administrator must notify the Commission of any disputed terms and the Commission shall resolve the dispute. The terms of the contracts shall not be subject to negotiation by winning bidders, and the bidders must agree to the terms of the contract in advance so that winning bids are selected solely on the basis of price.

(3) Establishment of a market-based price benchmark. As part of the development of the procurement process, the procurement administrator, in consultation with the Commission staff, Agency staff, and the procurement monitor, shall establish benchmarks for evaluating the final prices in the contracts for each of the products that will be procured through the procurement process. The benchmarks shall be based on price data for similar products for the same delivery period and same delivery hub, or other delivery hubs after adjusting for that difference. The price benchmarks may also be adjusted to take into account differences between the information reflected in the underlying data sources and the specific products and procurement process being used to procure power for the Illinois utilities. The benchmarks shall be confidential but shall be provided to, and will be subject to Commission review and approval, prior to a procurement event.

(4) Request for proposals competitive procurement process. The procurement administrator shall design and issue a request for proposals to supply electricity in accordance with each utility's procurement plan, as approved by the Commission. The request for proposals shall set forth a procedure for sealed, binding commitment bidding with pay-as-bid settlement, and provision for selection of bids on the basis of price.

(5) A plan for implementing contingencies in the event of supplier default or failure of the procurement process to fully meet the expected load requirement due to insufficient supplier participation, Commission rejection of results, or any other cause.

(i) Event of supplier default: In the event of supplier default, the utility shall review the contract of the defaulting supplier to determine if the amount of supply is 200 megawatts or greater, and if there are more than 60 days remaining of the contract term. If both of these conditions are met, and the default results in termination of the contract, the utility shall immediately notify the Illinois Power Agency that a request for proposals must be issued to procure replacement power, and the procurement administrator shall run an additional procurement event. If the contracted supply of the defaulting supplier is less than 200 megawatts or there are less than 60 days remaining of the contract term, the utility shall procure power and energy from the applicable regional transmission organization market, including ancillary services, capacity, and day-ahead or real time energy, or both, for the duration of the contract term to replace the contracted supply; provided, however, that if a needed product is not available through the regional transmission organization market it shall be purchased from the wholesale market.

(ii) Failure of the procurement process to fully meet the expected load requirement: If the procurement process fails to fully meet the expected load requirement due to insufficient supplier participation or due to a Commission rejection of the procurement results, the procurement administrator, the procurement monitor, and the Commission staff shall meet within 10 days to analyze potential causes of low supplier interest or causes for the Commission decision. If changes are identified that would likely result in increased supplier participation, or that would address concerns causing the Commission to reject the results of the prior procurement event, the procurement administrator may implement those changes and rerun the request for proposals process according to a schedule determined by those parties and consistent with Section 1-75 of the Illinois Power Agency Act and this subsection. In any event, a new request for proposals process shall be implemented by the procurement administrator within 90 days after the determination that the procurement process has failed to fully meet the expected load requirement.

(iii) In all cases where there is insufficient supply provided under contracts awarded through the procurement process to fully meet the electric utility's load requirement, the utility shall meet the load requirement by procuring power and energy from the applicable regional transmission organization market, including ancillary services, capacity, and day-ahead or real time energy, or both; provided, however, that if a needed product is not available through the regional transmission organization market it shall be purchased from the wholesale market.

(6) The procurement process described in this subsection is exempt from the requirements of the Illinois Procurement Code, pursuant to Section 20-10 of that Code.

(f) Within 2 business days after opening the sealed bids, the procurement administrator shall submit a confidential report to the Commission. The report shall contain the results of the bidding for each of the products along with the procurement administrator's recommendation for the acceptance and rejection of bids based on the price benchmark criteria and other factors observed in the process. The procurement monitor also shall submit a confidential report to the Commission within 2 business days after opening the sealed bids. The report shall contain the procurement monitor's assessment of bidder behavior in the process as well as an assessment of the procurement administrator's compliance with the procurement process and rules. The Commission shall review the confidential reports submitted by the procurement administrator and procurement monitor, and shall accept or reject the recommendations of the procurement administrator within 2 business days after receipt of the reports.

(g) Within 3 business days after the Commission decision approving the results of a procurement event, the utility shall enter into binding contractual arrangements with the winning suppliers using the standard form contracts; except that the utility shall not be required either directly or indirectly to execute the contracts if a tariff that is consistent with subsection (l) of this Section has not been approved and placed into effect for that utility.

(h) The names of the successful bidders and the load weighted average of the winning bid prices for each contract type and for each contract term shall be made available to the public at the time of Commission approval of a procurement event. The Commission, the procurement monitor, the procurement administrator, the Illinois Power Agency, and all participants in the procurement process shall maintain the confidentiality of all other supplier and bidding information in a manner consistent with all applicable laws, rules, regulations, and tariffs. Confidential information, including the confidential reports submitted by the procurement administrator and procurement monitor pursuant to subsection (f) of this Section, shall not be made publicly available and shall not be discoverable by any party in any proceeding, absent a compelling demonstration of need, nor shall those reports be admissible in any proceeding other than one for law enforcement purposes.

(i) Within 2 business days after a Commission decision approving the results of a procurement event or such other date as may be required by the Commission from time to time, the utility shall file for informational purposes with the Commission its actual or estimated retail supply charges, as applicable, by customer supply group reflecting the costs associated with the procurement and computed in accordance with the tariffs filed pursuant to subsection (l) of this Section and approved by the Commission.

(j) Within 60 days following August 28, 2007 (the effective date of Public Act 95-481), each electric utility that on December 31, 2005 provided electric service to at least 100,000 customers in Illinois shall prepare and file with the Commission an initial procurement plan, which shall conform in all material respects to the requirements of the procurement plan set forth in subsection (b); provided, however, that the Illinois Power Agency Act shall not apply to the initial procurement plan prepared pursuant to this subsection. The initial procurement plan shall identify the portfolio of power and energy products to be procured and delivered for the period June 2008 through May 2009, and shall identify the proposed procurement administrator, who shall have the same experience and expertise as is required of a procurement administrator hired pursuant to Section 1-75 of the Illinois Power Agency Act. Copies of the procurement plan shall be posted and made publicly available on the Commission's website. The initial procurement plan may include contracts for renewable resources that extend beyond May 2009.

(i) Within 14 days following filing of the initial procurement plan, any person may file a detailed objection with the Commission contesting the procurement plan submitted by the electric utility. All objections to the electric utility's plan shall be specific, supported by data or other detailed analyses. The electric utility may file a response to any objections to its procurement plan within 7 days after the date objections are due to be filed. Within 7 days after the date the utility's response is due, the Commission shall determine whether a hearing is necessary. If it determines that a hearing is necessary, it shall require the hearing to be completed and issue an order on the procurement plan within 60 days after the filing of the procurement plan by the electric utility.

(ii) The order shall approve or modify the procurement plan, approve an independent procurement administrator, and approve or modify the electric utility's tariffs that are proposed with the initial procurement plan. The Commission shall approve the procurement plan if the Commission determines that it will ensure adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost over time, taking into account any benefits of price stability.

(k) (Blank).

(k-5) (Blank).

(l) An electric utility shall recover its costs incurred under this Section, including, but not limited to, the costs of procuring power and energy demand-response resources under this Section. The utility shall file with the initial procurement plan its proposed tariffs through which its costs of procuring power that are incurred pursuant to a Commission-approved procurement plan and those other costs identified in this subsection (l), will be recovered. The tariffs shall include a formula rate or charge designed to pass through both the costs incurred by the utility in procuring a supply of electric power and energy for the applicable customer classes with no mark-up or return on the price paid by the utility for that supply, plus any just and reasonable costs that the utility incurs in arranging and providing for the supply of electric power and energy. The formula rate or charge shall also contain provisions that ensure that its application does not result in over or under recovery due to changes in customer usage and demand patterns, and that provide for the correction, on at least an annual basis, of any accounting errors that may occur. A utility shall recover through the tariff all reasonable costs incurred to implement or comply with any procurement plan that is developed and put into effect pursuant to Section 1-75 of the Illinois Power Agency Act and this Section, including any fees assessed by the Illinois Power Agency, costs associated with load balancing, and contingency plan costs. The electric utility shall also recover its full costs of procuring electric supply for which it contracted before the effective date of this Section in conjunction with the provision of full requirements service under fixed-price bundled service tariffs subsequent to December 31, 2006. All such costs shall be deemed to have been prudently incurred. The pass-through tariffs that are filed and approved pursuant to this Section shall not be subject to review under, or in any way limited by, Section 16-111(i) of this Act. All of the costs incurred by the electric utility associated with the purchase of zero emission credits in accordance with subsection (d-5) of Section 1-75 of the Illinois Power Agency Act and, beginning June 1, 2017, all of the costs incurred by the electric utility associated with the purchase of renewable energy resources in accordance with Sections 1-56 and 1-75 of the Illinois Power Agency Act, shall be recovered through the electric utility's tariffed charges applicable to all of its retail customers, as specified in subsection (k) of Section 16-108 of this Act, and shall not be recovered through the electric utility's tariffed charges for electric power and energy supply to its eligible retail customers.

(m) The Commission has the authority to adopt rules to carry out the provisions of this Section. For the public interest, safety, and welfare, the Commission also has authority to adopt rules to carry out the provisions of this Section on an emergency basis immediately following August 28, 2007 (the effective date of Public Act 95-481).

(n) Notwithstanding any other provision of this Act, any affiliated electric utilities that submit a single procurement plan covering their combined needs may procure for those combined needs in conjunction with that plan, and may enter jointly into power supply contracts, purchases, and other procurement arrangements, and allocate capacity and energy and cost responsibility therefor among themselves in proportion to their requirements.

(o) On or before June 1 of each year, the Commission shall hold an informal hearing for the purpose of receiving comments on the prior year's procurement process and any recommendations for change.

(p) An electric utility subject to this Section may propose to invest, lease, own, or operate an electric generation facility as part of its procurement plan, provided the utility demonstrates that such facility is the least-cost option to provide electric service to those retail customers included in the plan's electric supply service requirements. If the facility is shown to be the least-cost option and is included in a procurement plan prepared in accordance with Section 1-75 of the Illinois Power Agency Act and this Section, then the electric utility shall make a filing pursuant to Section 8-406 of this Act, and may request of the Commission any statutory relief required thereunder. If the Commission grants all of the necessary approvals for the proposed facility, such supply shall thereafter be considered as a pre-existing contract under subsection (b) of this Section. The Commission shall in any order approving a proposal under this subsection specify how the utility will recover the prudently incurred costs of investing in, leasing, owning, or operating such generation facility through just and reasonable rates charged to those retail customers included in the plan's electric supply service requirements. Cost recovery for facilities included in the utility's procurement plan pursuant to this subsection shall not be subject to review under or in any way limited by the provisions of Section 16-111(i) of this Act. Nothing in this Section is intended to prohibit a utility from filing for a fuel adjustment clause as is otherwise permitted under Section 9-220 of this Act.

(q) If the Illinois Power Agency filed with the Commission, under Section 16-111.5 of this Act, its proposed procurement plan for the period commencing June 1, 2017, and the Commission has not yet entered its final order approving the plan on or before the effective date of this amendatory Act of the 99th General Assembly, then the Illinois Power Agency shall file a notice of withdrawal with the Commission, after the effective date of this amendatory Act of the 99th General Assembly, to withdraw the proposed procurement of renewable energy resources to be approved under the plan, other than the procurement of renewable energy credits from distributed renewable energy generation devices using funds previously collected from electric utilities' retail customers that take service pursuant to electric utilities' hourly pricing tariff or tariffs and, for an electric utility that serves less than 100,000 retail customers in the State, other than the procurement of renewable energy credits from distributed renewable energy generation devices. Upon receipt of the notice, the Commission shall enter an order that approves the withdrawal of the proposed procurement of renewable energy resources from the plan. The initially proposed procurement of renewable energy resources shall not be approved or be the subject of any further hearing, investigation, proceeding, or order of any kind.

This amendatory Act of the 99th General Assembly preempts and supersedes any order entered by the Commission that approved the Illinois Power Agency's procurement plan for the period commencing June 1, 2017, to the extent it is inconsistent with the provisions of this amendatory Act of the 99th General Assembly. To the extent any previously entered order approved the procurement of renewable energy resources, the portion of that order approving the procurement shall be void, other than the procurement of renewable energy credits from distributed renewable energy generation devices using funds previously collected from electric utilities' retail customers that take service under electric utilities' hourly pricing tariff or tariffs and, for an electric utility that serves less than 100,000 retail customers in the State, other than the procurement of renewable energy credits for distributed renewable energy generation devices.

(Source: P.A. 99-906, eff. 6-1-17.)".