Rep. Robert Rita

Filed: 11/15/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2814

2    AMENDMENT NO. ______. Amend Senate Bill 2814, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Findings.
6    (a) In 2011, the General Assembly encouraged and enabled
7the State's largest electric utilities to undertake
8substantial investment to refurbish, rebuild, modernize, and
9expand Illinois' century-old electric grid. Among those
10investments were the deployment of a smart grid and advanced
11metering infrastructure platform that would be accessible to
12all retail customers through new, digital smart meters. This
13investment, now well underway, not only allows utilities to
14continue to provide safe, reliable, and affordable service to
15the State's current and future utility customers, but also
16empowers the citizens of this State to directly access and
17participate in the rapidly emerging clean energy economy while

 

 

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1also presenting them with unprecedented choices in their source
2of energy supply and pricing.
3    To ensure that the State and its citizens, including
4low-income citizens, are equipped to enjoy the opportunities
5and benefits of the smart grid and evolving clean energy
6marketplace, the General Assembly finds and declares that
7Illinois should continue in its efforts to build the grid of
8the future using the smart grid and advanced metering
9infrastructure platform, as well as maximize the impact of the
10State's existing energy efficiency and renewable energy
11portfolio standards. Specifically, the Generally Assembly
12finds that:
13        (1) the State should encourage: the adoption and
14    deployment of cost-effective distributed energy resource
15    technologies and devices, such as photovoltaics, which can
16    encourage private investment in renewable energy
17    resources, stimulate economic growth, enhance the
18    continued diversification of Illinois' energy resource
19    mix, and protect the Illinois environment; investment in
20    renewable energy resources, including, but not limited to,
21    photovoltaic distributed generation, which should benefit
22    all citizens of the State, including low-income
23    households;
24        (2) the State's existing energy efficiency standard
25    should be updated to ensure that customers continue to
26    realize increased value, to incorporate and optimize

 

 

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1    measures enabled by the smart grid, including voltage
2    optimization measures, and to provide incentives for
3    electric utilities to achieve the energy savings goals; and
4        (3) the State's electric utilities should initiate
5    programs to study the benefits of smart-grid enabled
6    technologies, including, but not limited to, deploying
7    microgrids. Such programs are not required to be cost
8    effective so long as a goal of the program is to analyze
9    cost effectiveness. The costs to implement, manage, and
10    analyze such programs shall be recovered through delivery
11    service rates.
12    (b) The General Assembly further finds that the expansion
13of distributed generation technologies and devices across the
14State necessarily disrupts existing electricity generation and
15distribution models and frameworks, including related rate and
16tariff schedules, which can lead to inequitable charges,
17especially for low-income customers who often encounter the
18most substantial obstacles to adopting costly distributed
19generation technologies and devices. As a result, the General
20Assembly finds that low-income customers should be included
21within the State's efforts to expand the use of distributed
22generation technologies and devices. To address these issues,
23electric utilities should also be permitted to file revised
24tariffs related to implementing low-income programs, average
25grid impact delivery services charges, and unbundling
26supply-related charges. These changes should be designed to

 

 

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1ensure both an equitable allocation of costs so that no
2customers have to pay more than their fair share of these costs
3and that all costs are recovered, thus ensuring better and more
4equitable access to distributed generation and other energy
5options.
 
6    Section 1.5. Zero emission standard legislative findings.
7The General Assembly finds and declares:
8        (1) Reducing emissions of carbon dioxide and other air
9    pollutants, such as sulfur oxides, nitrogen oxides, and
10    particulate matter, is critical to improving air quality in
11    Illinois for Illinois residents.
12        (2) Sulfur oxides, nitrogen oxides, and particulate
13    emissions have significant adverse health effects on
14    persons exposed to them, and carbon dioxide emissions
15    result in climate change trends that could significantly
16    adversely impact Illinois.
17        (3) The existing renewable portfolio standard has been
18    successful in promoting the growth of renewable energy
19    generation to reduce air pollution in Illinois. However, to
20    achieve its environmental goals, Illinois must expand its
21    commitment to zero emission energy generation and value the
22    environmental attributes of zero emission generation that
23    currently falls outside the scope of the existing renewable
24    portfolio standard, including, but not limited to, nuclear
25    power.

 

 

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1        (4) Preserving existing zero emission energy
2    generation and promoting new zero emission energy
3    generation is vital to placing the State on a glide path to
4    achieving its environmental goals and ensuring that air
5    quality in Illinois continues to improve.
6        (5) The Illinois Commerce Commission, the Illinois
7    Power Agency, the Illinois Environmental Protection
8    Agency, and the Department of Commerce and Economic
9    Opportunity issued a report dated January 5, 2015 titled
10    "Potential Nuclear Power Plant Closings in Illinois" (the
11    Report), which addressed the issues identified by Illinois
12    House Resolution 1146 of the 98th General Assembly, which,
13    among other things, urged the Illinois Environmental
14    Protection Agency to prepare a report showing how the
15    premature closure of existing nuclear power plants in
16    Illinois will affect the societal cost of increased
17    greenhouse gas emissions based upon the Environmental
18    Protection Agency's published societal cost of greenhouse
19    gases.
20        (6) The Report also included analysis from PJM
21    Interconnection, LLC, which identified significant adverse
22    consequences for electric reliability, including
23    significant voltage and thermal violations in the
24    interstate transmission network, in the event that
25    Illinois' existing nuclear facilities close prematurely.
26    The Report also found that nuclear power plants are among

 

 

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1    the most reliable sources of energy, which means that
2    electricity from nuclear power plants is available on the
3    electric grid all hours of the day and when needed, thereby
4    always reducing carbon emissions.
5        (7) Illinois House Resolution 1146 further urged that
6    the Report make findings concerning potential market-based
7    solutions that will ensure that the premature closure of
8    these nuclear power plants does not occur and that the
9    associated dire consequences to the environment, electric
10    reliability, and the regional economy are averted.
11        (8) The Report identified potential market-based
12    solutions that will ensure that the premature closure of
13    these nuclear power plants does not occur and that the
14    associated dire consequences to the environment, electric
15    reliability, and the regional economy are averted.
16    The General Assembly further finds that the Social Cost of
17Carbon is an appropriate valuation of the environmental
18benefits provided by zero emission facilities, provided that
19the valuation is subject to a price adjustment that can reduce
20the price for zero emission credits below the Social Cost of
21Carbon. This will ensure that the procurement of zero emission
22credits remains affordable for retail customers even if energy
23and capacity prices are projected to rise above 2016 levels
24reflected in the baseline market price index.
25    The General Assembly therefore finds that it is necessary
26to establish and implement a zero emission standard, which will

 

 

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1increase the State's reliance on zero emission energy through
2the procurement of zero emission credits from zero emission
3facilities, in order to achieve the State's environmental
4objectives and reduce the adverse impact of emitted air
5pollutants on the health and welfare of the State's citizens.
 
6    Section 5. The Illinois Power Agency Act is amended by
7changing Sections 1-5, 1-10, 1-20, 1-25, 1-56, and 1-75 as
8follows:
 
9    (20 ILCS 3855/1-5)
10    Sec. 1-5. Legislative declarations and findings. The
11General Assembly finds and declares:
12        (1) The health, welfare, and prosperity of all Illinois
13    citizens require the provision of adequate, reliable,
14    affordable, efficient, and environmentally sustainable
15    electric service at the lowest total cost over time, taking
16    into account any benefits of price stability.
17        (2) (Blank). The transition to retail competition is
18    not complete. Some customers, especially residential and
19    small commercial customers, have failed to benefit from
20    lower electricity costs from retail and wholesale
21    competition.
22        (3) (Blank). Escalating prices for electricity in
23    Illinois pose a serious threat to the economic well-being,
24    health, and safety of the residents of and the commerce and

 

 

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1    industry of the State.
2        (4) It To protect against this threat to economic
3    well-being, health, and safety it is necessary to improve
4    the process of procuring electricity to serve Illinois
5    residents, to promote investment in energy efficiency and
6    demand-response measures, and to maintain and support
7    development of clean coal technologies, generation
8    resources that operate at all hours of the day and under
9    all weather conditions, zero emission facilities, and
10    renewable resources.
11        (5) Procuring a diverse electricity supply portfolio
12    will ensure the lowest total cost over time for adequate,
13    reliable, efficient, and environmentally sustainable
14    electric service.
15        (6) Including cost-effective renewable resources and
16    zero emission credits from zero emission facilities in that
17    portfolio will reduce long-term direct and indirect costs
18    to consumers by decreasing environmental impacts and by
19    avoiding or delaying the need for new generation,
20    transmission, and distribution infrastructure. Developing
21    new renewable energy resources in Illinois, including
22    brownfield solar projects and community solar projects,
23    will help to diversify Illinois electricity supply, avoid
24    and reduce pollution, reduce peak demand, and enhance
25    public health and well-being of Illinois residents.
26        (7) Developing community solar projects in Illinois

 

 

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1    will help to expand access to renewable energy resources to
2    more Illinois residents.
3        (8) Developing brownfield solar projects in Illinois
4    will help return blighted or contaminated land to
5    productive use while enhancing public health and the
6    well-being of Illinois residents.
7        (9) (7) Energy efficiency, demand-response measures,
8    zero emission energy, and renewable energy are resources
9    currently underused in Illinois. These resources should be
10    used, when cost effective, to reduce costs to consumers,
11    improve reliability, and improve environmental quality and
12    public health.
13        (10) (8) The State should encourage the use of advanced
14    clean coal technologies that capture and sequester carbon
15    dioxide emissions to advance environmental protection
16    goals and to demonstrate the viability of coal and
17    coal-derived fuels in a carbon-constrained economy.
18        (11) (9) The General Assembly enacted Public Act
19    96-0795 to reform the State's purchasing processes,
20    recognizing that government procurement is susceptible to
21    abuse if structural and procedural safeguards are not in
22    place to ensure independence, insulation, oversight, and
23    transparency.
24        (12) (10) The principles that underlie the procurement
25    reform legislation apply also in the context of power
26    purchasing.

 

 

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1    The General Assembly therefore finds that it is necessary
2to create the Illinois Power Agency and that the goals and
3objectives of that Agency are to accomplish each of the
4following:
5        (A) Develop electricity procurement plans to ensure
6    adequate, reliable, affordable, efficient, and
7    environmentally sustainable electric service at the lowest
8    total cost over time, taking into account any benefits of
9    price stability, for electric utilities that on December
10    31, 2005 provided electric service to at least 100,000
11    customers in Illinois and for small multi-jurisdictional
12    electric utilities that (i) on December 31, 2005 served
13    less than 100,000 customers in Illinois and (ii) request a
14    procurement plan for their Illinois jurisdictional load.
15    The procurement plan shall be updated on an annual basis
16    and shall include renewable energy resources and,
17    beginning with the delivery year commencing June 1, 2017,
18    zero emission credits from zero emission facilities
19    sufficient to achieve the standards specified in this Act.
20        (B) Conduct competitive procurement processes to
21    procure the supply resources identified in the procurement
22    plan.
23        (C) Develop electric generation and co-generation
24    facilities that use indigenous coal or renewable
25    resources, or both, financed with bonds issued by the
26    Illinois Finance Authority.

 

 

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1        (D) Supply electricity from the Agency's facilities at
2    cost to one or more of the following: municipal electric
3    systems, governmental aggregators, or rural electric
4    cooperatives in Illinois.
5        (E) Ensure that the process of power procurement is
6    conducted in an ethical and transparent fashion, immune
7    from improper influence.
8        (F) Continue to review its policies and practices to
9    determine how best to meet its mission of providing the
10    lowest cost power to the greatest number of people, at any
11    given point in time, in accordance with applicable law.
12        (G) Operate in a structurally insulated, independent,
13    and transparent fashion so that nothing impedes the
14    Agency's mission to secure power at the best prices the
15    market will bear, provided that the Agency meets all
16    applicable legal requirements.
17        (H) Implement renewable energy procurement and
18    training programs throughout the State to diversify
19    Illinois electricity supply, improve reliability, avoid
20    and reduce pollution, reduce peak demand, and enhance
21    public health and well-being of Illinois residents,
22    including low-income residents.
23(Source: P.A. 97-325, eff. 8-12-11; 97-618, eff. 10-26-11;
2497-813, eff. 7-13-12.)
 
25    (20 ILCS 3855/1-10)

 

 

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1    Sec. 1-10. Definitions.
2    "Agency" means the Illinois Power Agency.
3    "Agency loan agreement" means any agreement pursuant to
4which the Illinois Finance Authority agrees to loan the
5proceeds of revenue bonds issued with respect to a project to
6the Agency upon terms providing for loan repayment installments
7at least sufficient to pay when due all principal of, interest
8and premium, if any, on those revenue bonds, and providing for
9maintenance, insurance, and other matters in respect of the
10project.
11    "Authority" means the Illinois Finance Authority.
12    "Brownfield site photovoltaic project" means photovoltaics
13that are:
14        (1) interconnected to an electric utility as defined in
15    this Section, a municipal utility as defined in this
16    Section, a public utility as defined in Section 3-105 of
17    the Public Utilities Act, or an electric cooperative, as
18    defined in Section 3-119 of the Public Utilities Act; and
19        (2) located at a site that is regulated by any of the
20    following entities under the following programs:
21            (A) the United States Environmental Protection
22        Agency under the federal Comprehensive Environmental
23        Response, Compensation, and Liability Act of 1980, as
24        amended;
25            (B) the United States Environmental Protection
26        Agency under the Corrective Action Program of the

 

 

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1        federal Resource Conservation and Recovery Act, as
2        amended;
3            (C) the Illinois Environmental Protection Agency
4        under the Illinois Site Remediation Program; or
5            (D) the Illinois Environmental Protection Agency
6        under the Illinois Solid Waste Program.
7    "Clean coal facility" means an electric generating
8facility that uses primarily coal as a feedstock and that
9captures and sequesters carbon dioxide emissions at the
10following levels: at least 50% of the total carbon dioxide
11emissions that the facility would otherwise emit if, at the
12time construction commences, the facility is scheduled to
13commence operation before 2016, at least 70% of the total
14carbon dioxide emissions that the facility would otherwise emit
15if, at the time construction commences, the facility is
16scheduled to commence operation during 2016 or 2017, and at
17least 90% of the total carbon dioxide emissions that the
18facility would otherwise emit if, at the time construction
19commences, the facility is scheduled to commence operation
20after 2017. The power block of the clean coal facility shall
21not exceed allowable emission rates for sulfur dioxide,
22nitrogen oxides, carbon monoxide, particulates and mercury for
23a natural gas-fired combined-cycle facility the same size as
24and in the same location as the clean coal facility at the time
25the clean coal facility obtains an approved air permit. All
26coal used by a clean coal facility shall have high volatile

 

 

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1bituminous rank and greater than 1.7 pounds of sulfur per
2million btu content, unless the clean coal facility does not
3use gasification technology and was operating as a conventional
4coal-fired electric generating facility on June 1, 2009 (the
5effective date of Public Act 95-1027).
6    "Clean coal SNG brownfield facility" means a facility that
7(1) has commenced construction by July 1, 2015 on an urban
8brownfield site in a municipality with at least 1,000,000
9residents; (2) uses a gasification process to produce
10substitute natural gas; (3) uses coal as at least 50% of the
11total feedstock over the term of any sourcing agreement with a
12utility and the remainder of the feedstock may be either
13petroleum coke or coal, with all such coal having a high
14bituminous rank and greater than 1.7 pounds of sulfur per
15million Btu content unless the facility reasonably determines
16that it is necessary to use additional petroleum coke to
17deliver additional consumer savings, in which case the facility
18shall use coal for at least 35% of the total feedstock over the
19term of any sourcing agreement; and (4) captures and sequesters
20at least 85% of the total carbon dioxide emissions that the
21facility would otherwise emit.
22    "Clean coal SNG facility" means a facility that uses a
23gasification process to produce substitute natural gas, that
24sequesters at least 90% of the total carbon dioxide emissions
25that the facility would otherwise emit, that uses at least 90%
26coal as a feedstock, with all such coal having a high

 

 

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1bituminous rank and greater than 1.7 pounds of sulfur per
2million btu content, and that has a valid and effective permit
3to construct emission sources and air pollution control
4equipment and approval with respect to the federal regulations
5for Prevention of Significant Deterioration of Air Quality
6(PSD) for the plant pursuant to the federal Clean Air Act;
7provided, however, a clean coal SNG brownfield facility shall
8not be a clean coal SNG facility.
9    "Commission" means the Illinois Commerce Commission.
10    "Community renewable generation project" means an electric
11generating facility that:
12        (1) is powered by wind, solar thermal energy,
13    photovoltaic cells or panels, biodiesel, crops and
14    untreated and unadulterated organic waste biomass, tree
15    waste, and hydropower that does not involve new
16    construction or significant expansion of hydropower dams;
17        (2) is interconnected at the distribution system level
18    of an electric utility as defined in this Section, a
19    municipal utility as defined in this Section, a public
20    utility as defined in Section 3-105 of the Public Utilities
21    Act, or an electric cooperative, as defined in Section
22    3-119 of the Public Utilities Act;
23        (3) credits the value of electricity generated by the
24    facility to the subscribers of the facility; and
25        (4) is limited in nameplate capacity to less than or
26    equal to 2,000 kilowatts.

 

 

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1    "Costs incurred in connection with the development and
2construction of a facility" means:
3        (1) the cost of acquisition of all real property,
4    fixtures, and improvements in connection therewith and
5    equipment, personal property, and other property, rights,
6    and easements acquired that are deemed necessary for the
7    operation and maintenance of the facility;
8        (2) financing costs with respect to bonds, notes, and
9    other evidences of indebtedness of the Agency;
10        (3) all origination, commitment, utilization,
11    facility, placement, underwriting, syndication, credit
12    enhancement, and rating agency fees;
13        (4) engineering, design, procurement, consulting,
14    legal, accounting, title insurance, survey, appraisal,
15    escrow, trustee, collateral agency, interest rate hedging,
16    interest rate swap, capitalized interest, contingency, as
17    required by lenders, and other financing costs, and other
18    expenses for professional services; and
19        (5) the costs of plans, specifications, site study and
20    investigation, installation, surveys, other Agency costs
21    and estimates of costs, and other expenses necessary or
22    incidental to determining the feasibility of any project,
23    together with such other expenses as may be necessary or
24    incidental to the financing, insuring, acquisition, and
25    construction of a specific project and starting up,
26    commissioning, and placing that project in operation.

 

 

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1    "Delivery services" has the same definition as found in
2Section 16-102 of the Public Utilities Act.
3    "Delivery year" means the consecutive 12-month period
4beginning June 1 of a given year and ending May 31 of the
5following year.
6    "Department" means the Department of Commerce and Economic
7Opportunity.
8    "Director" means the Director of the Illinois Power Agency.
9    "Demand-response" means measures that decrease peak
10electricity demand or shift demand from peak to off-peak
11periods.
12    "Distributed renewable energy generation device" means a
13device that is:
14        (1) powered by wind, solar thermal energy,
15    photovoltaic cells or and panels, biodiesel, crops and
16    untreated and unadulterated organic waste biomass, tree
17    waste, and hydropower that does not involve new
18    construction or significant expansion of hydropower dams;
19        (2) interconnected at the distribution system level of
20    either an electric utility as defined in this Section, an
21    alternative retail electric supplier as defined in Section
22    16-102 of the Public Utilities Act, a municipal utility as
23    defined in this Section 3-105 of the Public Utilities Act,
24    or a rural electric cooperative as defined in Section 3-119
25    of the Public Utilities Act;
26        (3) located on the customer side of the customer's

 

 

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1    electric meter and is primarily used to offset that
2    customer's electricity load; and
3        (4) limited in nameplate capacity to less than or equal
4    to no more than 2,000 kilowatts.
5    "Energy efficiency" means measures that reduce the amount
6of electricity or natural gas consumed in order required to
7achieve a given end use. "Energy efficiency" includes voltage
8optimization measures that optimize the voltage at points on
9the electric distribution voltage system and thereby reduce
10electricity consumption by electric customers' end use
11devices. "Energy efficiency" also includes measures that
12reduce the total Btus of electricity, and natural gas, and
13other fuels needed to meet the end use or uses.
14    "Electric utility" has the same definition as found in
15Section 16-102 of the Public Utilities Act.
16    "Facility" means an electric generating unit or a
17co-generating unit that produces electricity along with
18related equipment necessary to connect the facility to an
19electric transmission or distribution system.
20    "Governmental aggregator" means one or more units of local
21government that individually or collectively procure
22electricity to serve residential retail electrical loads
23located within its or their jurisdiction.
24    "Local government" means a unit of local government as
25defined in Section 1 of Article VII of the Illinois
26Constitution.

 

 

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1    "Municipality" means a city, village, or incorporated
2town.
3    "Municipal utility" means a public utility owned and
4operated by any subdivision or municipal corporation of this
5State.
6    "Nameplate capacity" means the aggregate inverter
7nameplate capacity in kilowatts AC.
8    "Person" means any natural person, firm, partnership,
9corporation, either domestic or foreign, company, association,
10limited liability company, joint stock company, or association
11and includes any trustee, receiver, assignee, or personal
12representative thereof.
13    "Project" means the planning, bidding, and construction of
14a facility.
15    "Public utility" has the same definition as found in
16Section 3-105 of the Public Utilities Act.
17    "Real property" means any interest in land together with
18all structures, fixtures, and improvements thereon, including
19lands under water and riparian rights, any easements,
20covenants, licenses, leases, rights-of-way, uses, and other
21interests, together with any liens, judgments, mortgages, or
22other claims or security interests related to real property.
23    "Renewable energy credit" means a tradable credit that
24represents the environmental attributes of one megawatt hour a
25certain amount of energy produced from a renewable energy
26resource.

 

 

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1    "Renewable energy resources" includes energy and its
2associated renewable energy credit or renewable energy credits
3from wind, solar thermal energy, photovoltaic cells and panels,
4biodiesel, anaerobic digestion, crops and untreated and
5unadulterated organic waste biomass, tree waste, and
6hydropower that does not involve new construction or
7significant expansion of hydropower dams, and other
8alternative sources of environmentally preferable energy. For
9purposes of this Act, landfill gas produced in the State is
10considered a renewable energy resource. "Renewable energy
11resources" does not include the incineration or burning of
12tires, garbage, general household, institutional, and
13commercial waste, industrial lunchroom or office waste,
14landscape waste other than tree waste, railroad crossties,
15utility poles, or construction or demolition debris, other than
16untreated and unadulterated waste wood.
17    "Retail customer" has the same definition as found in
18Section 16-102 of the Public Utilities Act.
19    "Revenue bond" means any bond, note, or other evidence of
20indebtedness issued by the Authority, the principal and
21interest of which is payable solely from revenues or income
22derived from any project or activity of the Agency.
23    "Sequester" means permanent storage of carbon dioxide by
24injecting it into a saline aquifer, a depleted gas reservoir,
25or an oil reservoir, directly or through an enhanced oil
26recovery process that may involve intermediate storage,

 

 

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1regardless of whether these activities are conducted by a clean
2coal facility, a clean coal SNG facility, a clean coal SNG
3brownfield facility, or a party with which a clean coal
4facility, clean coal SNG facility, or clean coal SNG brownfield
5facility has contracted for such purposes.
6    "Service area" has the same definition as found in Section
716-102 of the Public Utilities Act.
8    "Sourcing agreement" means (i) in the case of an electric
9utility, an agreement between the owner of a clean coal
10facility and such electric utility, which agreement shall have
11terms and conditions meeting the requirements of paragraph (3)
12of subsection (d) of Section 1-75, (ii) in the case of an
13alternative retail electric supplier, an agreement between the
14owner of a clean coal facility and such alternative retail
15electric supplier, which agreement shall have terms and
16conditions meeting the requirements of Section 16-115(d)(5) of
17the Public Utilities Act, and (iii) in case of a gas utility,
18an agreement between the owner of a clean coal SNG brownfield
19facility and the gas utility, which agreement shall have the
20terms and conditions meeting the requirements of subsection
21(h-1) of Section 9-220 of the Public Utilities Act.
22    "Subscriber" means a person who (i) takes delivery service
23from an electric utility, and (ii) has a subscription of no
24less than 200 watts to a community renewable generation project
25that is located in the electric utility's service area. No
26subscriber's subscriptions may total more than 40% of the

 

 

09900SB2814ham002- 22 -LRB099 19990 RJF 51572 a

1nameplate capacity of an individual community renewable
2generation project. Entities that are affiliated by virtue of a
3common parent shall not represent multiple subscriptions that
4total more than 40% of the nameplate capacity of an individual
5community renewable generation project.
6    "Subscription" means an interest in a community renewable
7generation project expressed in kilowatts, which is sized
8primarily to offset part or all of the subscriber's electricity
9usage.
10    "Substitute natural gas" or "SNG" means a gas manufactured
11by gasification of hydrocarbon feedstock, which is
12substantially interchangeable in use and distribution with
13conventional natural gas.
14    "Total resource cost test" or "TRC test" means a standard
15that is met if, for an investment in energy efficiency or
16demand-response measures, the benefit-cost ratio is greater
17than one. The benefit-cost ratio is the ratio of the net
18present value of the total benefits of the program to the net
19present value of the total costs as calculated over the
20lifetime of the measures. A total resource cost test compares
21the sum of avoided electric utility costs, representing the
22benefits that accrue to the system and the participant in the
23delivery of those efficiency measures and including avoided
24costs associated with reduced use of natural gas or other
25fuels, avoided costs associated with reduced water
26consumption, and avoided costs associated with reduced

 

 

09900SB2814ham002- 23 -LRB099 19990 RJF 51572 a

1operation and maintenance costs, as well as other quantifiable
2societal benefits, including avoided natural gas utility
3costs, to the sum of all incremental costs of end-use measures
4that are implemented due to the program (including both utility
5and participant contributions), plus costs to administer,
6deliver, and evaluate each demand-side program, to quantify the
7net savings obtained by substituting the demand-side program
8for supply resources. In calculating avoided costs of power and
9energy that an electric utility would otherwise have had to
10acquire, reasonable estimates shall be included of financial
11costs likely to be imposed by future regulations and
12legislation on emissions of greenhouse gases. In discounting
13future societal costs and benefits for the purpose of
14calculating net present values, a societal discount rate based
15on actual, long-term Treasury bond yields should be used.
16Notwithstanding anything to the contrary, the TRC test shall
17not include or take into account a calculation of market price
18suppression effects or demand reduction induced price effects.
19    "Utility-scale solar project" means an electric generating
20facility that:
21        (1) generates electricity using photovoltaic cells;
22    and
23        (2) has a nameplate capacity that is greater than 2,000
24    kilowatts.
25    "Utility-scale wind project" means an electric generating
26facility that:

 

 

09900SB2814ham002- 24 -LRB099 19990 RJF 51572 a

1        (1) generates electricity using wind; and
2        (2) has a nameplate capacity that is greater than 2,000
3    kilowatts.
4    "Zero emission credit" means a tradable credit that
5represents the environmental attributes of one megawatt hour of
6energy produced from a zero emission facility.
7    "Zero emission facility" means a facility that: (1) is
8fueled by nuclear power; and (2) is interconnected with PJM
9Interconnection, LLC or the Midcontinent Independent System
10Operator, Inc., or their successors.
11(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491,
12eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12;
1398-90, eff. 7-15-13.)
 
14    (20 ILCS 3855/1-20)
15    Sec. 1-20. General powers of the Agency.
16    (a) The Agency is authorized to do each of the following:
17        (1) Develop electricity procurement plans to ensure
18    adequate, reliable, affordable, efficient, and
19    environmentally sustainable electric service at the lowest
20    total cost over time, taking into account any benefits of
21    price stability, for electric utilities that on December
22    31, 2005 provided electric service to at least 100,000
23    customers in Illinois and for small multi-jurisdictional
24    electric utilities that (A) on December 31, 2005 served
25    less than 100,000 customers in Illinois and (B) request a

 

 

09900SB2814ham002- 25 -LRB099 19990 RJF 51572 a

1    procurement plan for their Illinois jurisdictional load.
2    The electricity procurement plans shall be updated on an
3    annual basis and shall, through May 31, 2017, include
4    electricity generated from renewable resources sufficient
5    to achieve the standards specified in this Act. Beginning
6    with the delivery year commencing June 1, 2017, the
7    electricity procurement plans shall also include
8    electricity generated from zero emission facilities
9    sufficient to achieve the standards specified in this Act.
10        (1.5) Beginning with the delivery year commencing June
11    1, 2017, develop a long-term renewable resources
12    procurement plan in accordance with subsection (c) of
13    Section 1-75 of this Act for renewable energy credits in
14    amounts sufficient to achieve the standards specified in
15    this Act.
16        (2) Conduct competitive procurement processes to
17    procure the supply resources identified in the electricity
18    procurement plan, pursuant to Section 16-111.5 of the
19    Public Utilities Act, and, for the delivery year commencing
20    June 1, 2017, conduct procurement processes to procure zero
21    emission credits from zero emission facilities, under
22    subsection (d-5) of Section 1-75 of this Act.
23        (2.5) Beginning with the 2017 delivery year, conduct
24    competitive procurement processes and implement programs
25    to procure renewable energy credits identified in the
26    long-term renewable resources procurement plan developed

 

 

09900SB2814ham002- 26 -LRB099 19990 RJF 51572 a

1    and approved under subsection (c) of Section 1-75 of this
2    Act and Section 16-111.5 of the Public Utilities Act.
3        (3) Develop electric generation and co-generation
4    facilities that use indigenous coal or renewable
5    resources, or both, financed with bonds issued by the
6    Illinois Finance Authority.
7        (4) Supply electricity from the Agency's facilities at
8    cost to one or more of the following: municipal electric
9    systems, governmental aggregators, or rural electric
10    cooperatives in Illinois.
11    (b) Except as otherwise limited by this Act, the Agency has
12all of the powers necessary or convenient to carry out the
13purposes and provisions of this Act, including without
14limitation, each of the following:
15        (1) To have a corporate seal, and to alter that seal at
16    pleasure, and to use it by causing it or a facsimile to be
17    affixed or impressed or reproduced in any other manner.
18        (2) To use the services of the Illinois Finance
19    Authority necessary to carry out the Agency's purposes.
20        (3) To negotiate and enter into loan agreements and
21    other agreements with the Illinois Finance Authority.
22        (4) To obtain and employ personnel and hire consultants
23    that are necessary to fulfill the Agency's purposes, and to
24    make expenditures for that purpose within the
25    appropriations for that purpose.
26        (5) To purchase, receive, take by grant, gift, devise,

 

 

09900SB2814ham002- 27 -LRB099 19990 RJF 51572 a

1    bequest, or otherwise, lease, or otherwise acquire, own,
2    hold, improve, employ, use, and otherwise deal in and with,
3    real or personal property whether tangible or intangible,
4    or any interest therein, within the State.
5        (6) To acquire real or personal property, whether
6    tangible or intangible, including without limitation
7    property rights, interests in property, franchises,
8    obligations, contracts, and debt and equity securities,
9    and to do so by the exercise of the power of eminent domain
10    in accordance with Section 1-21; except that any real
11    property acquired by the exercise of the power of eminent
12    domain must be located within the State.
13        (7) To sell, convey, lease, exchange, transfer,
14    abandon, or otherwise dispose of, or mortgage, pledge, or
15    create a security interest in, any of its assets,
16    properties, or any interest therein, wherever situated.
17        (8) To purchase, take, receive, subscribe for, or
18    otherwise acquire, hold, make a tender offer for, vote,
19    employ, sell, lend, lease, exchange, transfer, or
20    otherwise dispose of, mortgage, pledge, or grant a security
21    interest in, use, and otherwise deal in and with, bonds and
22    other obligations, shares, or other securities (or
23    interests therein) issued by others, whether engaged in a
24    similar or different business or activity.
25        (9) To make and execute agreements, contracts, and
26    other instruments necessary or convenient in the exercise

 

 

09900SB2814ham002- 28 -LRB099 19990 RJF 51572 a

1    of the powers and functions of the Agency under this Act,
2    including contracts with any person, including personal
3    service contracts, or with any local government, State
4    agency, or other entity; and all State agencies and all
5    local governments are authorized to enter into and do all
6    things necessary to perform any such agreement, contract,
7    or other instrument with the Agency. No such agreement,
8    contract, or other instrument shall exceed 40 years.
9        (10) To lend money, invest and reinvest its funds in
10    accordance with the Public Funds Investment Act, and take
11    and hold real and personal property as security for the
12    payment of funds loaned or invested.
13        (11) To borrow money at such rate or rates of interest
14    as the Agency may determine, issue its notes, bonds, or
15    other obligations to evidence that indebtedness, and
16    secure any of its obligations by mortgage or pledge of its
17    real or personal property, machinery, equipment,
18    structures, fixtures, inventories, revenues, grants, and
19    other funds as provided or any interest therein, wherever
20    situated.
21        (12) To enter into agreements with the Illinois Finance
22    Authority to issue bonds whether or not the income
23    therefrom is exempt from federal taxation.
24        (13) To procure insurance against any loss in
25    connection with its properties or operations in such amount
26    or amounts and from such insurers, including the federal

 

 

09900SB2814ham002- 29 -LRB099 19990 RJF 51572 a

1    government, as it may deem necessary or desirable, and to
2    pay any premiums therefor.
3        (14) To negotiate and enter into agreements with
4    trustees or receivers appointed by United States
5    bankruptcy courts or federal district courts or in other
6    proceedings involving adjustment of debts and authorize
7    proceedings involving adjustment of debts and authorize
8    legal counsel for the Agency to appear in any such
9    proceedings.
10        (15) To file a petition under Chapter 9 of Title 11 of
11    the United States Bankruptcy Code or take other similar
12    action for the adjustment of its debts.
13        (16) To enter into management agreements for the
14    operation of any of the property or facilities owned by the
15    Agency.
16        (17) To enter into an agreement to transfer and to
17    transfer any land, facilities, fixtures, or equipment of
18    the Agency to one or more municipal electric systems,
19    governmental aggregators, or rural electric agencies or
20    cooperatives, for such consideration and upon such terms as
21    the Agency may determine to be in the best interest of the
22    citizens of Illinois.
23        (18) To enter upon any lands and within any building
24    whenever in its judgment it may be necessary for the
25    purpose of making surveys and examinations to accomplish
26    any purpose authorized by this Act.

 

 

09900SB2814ham002- 30 -LRB099 19990 RJF 51572 a

1        (19) To maintain an office or offices at such place or
2    places in the State as it may determine.
3        (20) To request information, and to make any inquiry,
4    investigation, survey, or study that the Agency may deem
5    necessary to enable it effectively to carry out the
6    provisions of this Act.
7        (21) To accept and expend appropriations.
8        (22) To engage in any activity or operation that is
9    incidental to and in furtherance of efficient operation to
10    accomplish the Agency's purposes, including hiring
11    employees that the Director deems essential for the
12    operations of the Agency.
13        (23) To adopt, revise, amend, and repeal rules with
14    respect to its operations, properties, and facilities as
15    may be necessary or convenient to carry out the purposes of
16    this Act, subject to the provisions of the Illinois
17    Administrative Procedure Act and Sections 1-22 and 1-35 of
18    this Act.
19        (24) To establish and collect charges and fees as
20    described in this Act.
21        (25) To conduct competitive gasification feedstock
22    procurement processes to procure the feedstocks for the
23    clean coal SNG brownfield facility in accordance with the
24    requirements of Section 1-78 of this Act.
25        (26) To review, revise, and approve sourcing
26    agreements and mediate and resolve disputes between gas

 

 

09900SB2814ham002- 31 -LRB099 19990 RJF 51572 a

1    utilities and the clean coal SNG brownfield facility
2    pursuant to subsection (h-1) of Section 9-220 of the Public
3    Utilities Act.
4        (27) To implement job training programs as described in
5    Section 1-56 of this Act.
6(Source: P.A. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10;
797-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff.
810-26-11; 97-813, eff. 7-13-12.)
 
9    (20 ILCS 3855/1-25)
10    Sec. 1-25. Agency subject to other laws. Unless otherwise
11stated, the Agency is subject to the provisions of all
12applicable laws, including but not limited to, each of the
13following:
14        (1) The State Records Act.
15        (2) The Illinois Procurement Code, except that the
16    Illinois Procurement Code does not apply to the hiring of
17    procurement administrators, or procurement planning
18    consultants, third-party program managers, or other
19    persons who will implement the programs described in
20    Sections 1-56 and pursuant to Section 1-75 of the Illinois
21    Power Agency Act.
22        (3) The Freedom of Information Act.
23        (4) The State Property Control Act.
24        (5) (Blank).
25        (6) The State Officials and Employees Ethics Act.

 

 

09900SB2814ham002- 32 -LRB099 19990 RJF 51572 a

1(Source: P.A. 97-618, eff. 10-26-11.)
 
2    (20 ILCS 3855/1-56)
3    Sec. 1-56. Illinois Power Agency Renewable Energy
4Resources Fund; Illinois Solar for All Program.
5    (a) The Illinois Power Agency Renewable Energy Resources
6Fund is created as a special fund in the State treasury.
7    (b) The Illinois Power Agency Renewable Energy Resources
8Fund shall be administered by the Agency as described in this
9subsection (b).
10        (1) The Illinois Power Agency Renewable Energy
11    Resources Fund shall be used to purchase renewable energy
12    credits according to any approved procurement plan
13    developed by the Agency prior to June 1, 2017.
14        (2) The Illinois Power Agency Renewable Energy
15    Resources Fund shall also be used to create the Illinois
16    Solar for All Program, which shall include incentives for
17    low-income distributed generation and community solar
18    projects, solar job training programs as described in this
19    subsection (b), and other associated approved
20    expenditures. The objectives of the Illinois Solar for All
21    Program are to bring photovoltaics to low-income
22    communities in this State in a manner that maximizes the
23    development of new photovoltaic generating facilities, to
24    provide workforce development and job training
25    opportunities within low-income communities, to create a

 

 

09900SB2814ham002- 33 -LRB099 19990 RJF 51572 a

1    long-term, low-income solar marketplace throughout this
2    State, to integrate with existing energy efficiency
3    initiatives, and to minimize administrative costs. The
4    Agency shall include the Illinois Solar for All Program as
5    part of the long-term renewable resources procurement plan
6    authorized by subsection (c) of Section 1-75 of this Act,
7    and the program shall be designed to grow the low-income
8    solar market. The Agency shall purchase renewable energy
9    credits from the (i) photovoltaic distributed renewable
10    energy generation projects and (ii) community solar
11    projects that are approved by the Commission under this
12    subsection (b). The program shall include the following
13    components:
14            (A) Job training: The Illinois Solar for All
15        Program shall include the following job training
16        programs, which the Agency shall procure through
17        contracts and fund in the amounts identified using the
18        monies available in the Illinois Power Agency
19        Renewable Energy Resources Fund, subject to
20        appropriation:
21                (i) Solar Training Pipeline Program:
22            $10,000,000 in programs designed to establish a
23            solar installer training pipeline for the purpose
24            of training participants to work on low-income
25            incentive projects implemented under this
26            subsection (b). The program may include single

 

 

09900SB2814ham002- 34 -LRB099 19990 RJF 51572 a

1            event training programs. Solar companies
2            participating under this subsection (b) shall
3            commit to hiring job trainees for installations of
4            projects under this subsection (b). Not-for-profit
5            job training based installation models are exempt
6            from the hiring requirement. The program described
7            in this item (i) shall be designed to ensure that
8            training partners and trainees are located in the
9            same communities that the program aims to serve and
10            that the program provides trainees with the
11            opportunity to obtain real-world experience. The
12            program described in this item (i) shall also be
13            designed to assist trainees so that they can obtain
14            applicable certifications or participate in an
15            apprenticeship program. The program described in
16            this item (i) shall also be designed as a
17            partnership opportunity for existing training
18            programs to offer additional hands-on training
19            experience, including, but not limited to,
20            programs such as union apprenticeships, technical
21            and community colleges, utility training programs,
22            State of Illinois job training programs, or
23            not-for-profit organizations. It is a goal of the
24            program described in this item (i) that at least
25            50% of the trainees in this program come from
26            within environmental justice communities.

 

 

09900SB2814ham002- 35 -LRB099 19990 RJF 51572 a

1                (ii) CONSTRUCT Enhancement Program: $2,000,000
2            in programs over a period not to exceed 5 years, to
3            enlarge and enhance job training programs of
4            electric utilities that serve at least 3,000,000
5            retail customers in this State that were being
6            offered as of January 1, 2016. Funding under this
7            item (ii) shall expand these job training programs
8            to include solar-related training opportunities
9            and also to offer these training programs
10            throughout the State. It is a goal of this item
11            (ii) that at least 50% of the trainees in this
12            program come from within environmental justice
13            communities.
14                (iii) Renewable and Energy Efficiency
15            Manufacturing Program: $3,000,000 in job training
16            programs offered to manufacturers, with a
17            preference for programs related to clean energy,
18            renewable energy, and energy efficiency. Funds and
19            programs may be distributed across a period not to
20            exceed 5 years. The Agency shall strive to ensure a
21            geographic balance in the procurement of contracts
22            to ensure a Statewide benefit. It is a goal of this
23            item (iii) that at least 50% of the trainees in
24            this program come from within environmental
25            justice communities.
26                (iv) Solar Training Pilot Program: Under this

 

 

09900SB2814ham002- 36 -LRB099 19990 RJF 51572 a

1            program, persons, organizations, governmental
2            entities, not-for-profit organizations, and
3            education facilities can propose pilot or
4            single-event training projects that expand solar
5            training opportunities, which the Agency or
6            administrator, through delegated authority, deems
7            to meet a need that is not being currently served
8            through items (i), (ii), or (iii) of this
9            subparagraph (A) or other training programs not
10            funded under this subsection (b). The program
11            described under this item (iv) may provide grants
12            under this item (iv) to training projects that
13            diversify training opportunities, increase
14            partnerships with community organization or
15            workforce development agencies, increase
16            geographic diversity of trainees served, or
17            increase opportunities to train underserved
18            populations. The Agency or administrator, through
19            delegated authority, shall prioritize funding
20            targeted qualified persons with a record who are
21            transitioning with job training and job placement
22            programs, and programs administered to provide
23            training to individuals who are or were foster
24            children. The Agency or program administrator may
25            develop an incentive to facilitate an increase of
26            hiring of qualified persons with a record and

 

 

09900SB2814ham002- 37 -LRB099 19990 RJF 51572 a

1            individuals who are or were foster children, with a
2            goal to achieve 2,000 hires of this type. Funding
3            for this program shall not exceed $5,000,000.
4            The training programs described in this
5        subparagraph (A) shall be provided throughout the
6        State, and administrative costs associated with these
7        training programs shall not exceed 10% of the moneys
8        allocated for these programs. For the purposes of this
9        subparagraph (A), "qualified person with a record"
10        means any person who (1) has been convicted of a crime
11        in this State or of an offense in any other
12        jurisdiction, not including an offense or attempted
13        offense that would subject a person to registration
14        under the Sex Offender Registration Act; (2) has a
15        record of an arrest or an arrest that did not result in
16        conviction for any crime in this State or of an offense
17        in any other jurisdiction; or (3) has a juvenile
18        delinquency adjudication.
19            (B) Programs. The Illinois Solar for All Program
20        shall also include the program offerings described in
21        items (i) through (iv) of this subparagraph (B), which
22        the Agency shall procure through contracts and,
23        subject to appropriation, fund in the amounts
24        identified using monies available in the Illinois
25        Power Agency Renewable Energy Resources Fund, after
26        considering the contracts executed for, and the funds

 

 

09900SB2814ham002- 38 -LRB099 19990 RJF 51572 a

1        committed to, the training programs described in
2        subparagraph (A) of this paragraph (2). The monies
3        available shall be allocated among the programs
4        described in this subparagraph (B), as follows: 22.5%
5        of these funds shall be allocated to programs described
6        in item (i) of this subparagraph (B), 37.5% of these
7        funds shall be allocated to programs described in item
8        (ii) of this subparagraph (B), 15% of these funds shall
9        be allocated to programs described in item (iii) of
10        this subparagraph (B), and 25% of these funds, but in
11        no event more than $50,000,000, shall be allocated to
12        programs described in item (iv) of this subparagraph
13        (B). The allocation of funds among items (i), (ii), or
14        (iii) of this subparagraph (B) may be changed if the
15        Agency or administrator, through delegated authority,
16        determines incentives in items (i), (ii), or (iii) of
17        this subparagraph (B) have not been adequately
18        subscribed to fully utilize the Illinois Power Agency
19        Renewable Energy Resources Fund. The determination
20        shall include input through a stakeholder process.
21            The Illinois Solar for All Program shall identify
22        the best method to ensure the wholesale market value of
23        the energy is credited to participating low-income
24        customers or organizations and to ensure tangible
25        economic benefits flow directly to program
26        participants, except in the case of low-income

 

 

09900SB2814ham002- 39 -LRB099 19990 RJF 51572 a

1        multi-family housing where the low-income customer
2        does not directly pay for energy. Priority shall be
3        given to projects that demonstrate meaningful
4        involvement of low-income community members in
5        designing the initial proposals. Acceptable proposals
6        to implement projects must demonstrate the applicant's
7        ability to conduct initial community outreach,
8        education, and recruitment of low-income participants
9        in the community. Projects must include job training
10        opportunities.
11                (i) Low-income distributed generation
12            incentive: This program will provide incentives to
13            increase the participation of low-income
14            households in photovoltaic on-site distributed
15            generation. Solar companies participating in this
16            program, and offering the low-income incentive,
17            shall commit to hiring job trainees for a portion
18            of their low-income installations, and an
19            administrator shall facilitate offerings from a
20            variety of job training partners. It is a goal of
21            this program that a minimum of 25% of the
22            incentives for this program be allocated to
23            projects located within environmental justice
24            communities.
25                (ii) Low-Income Community Solar Project
26            Initiative: Incentives shall be offered to

 

 

09900SB2814ham002- 40 -LRB099 19990 RJF 51572 a

1            increase the participation of low-income
2            subscribers of community solar projects. The
3            developer of each project shall identify its
4            partnership with community stakeholders regarding
5            the location, development, and participation in
6            the project, provided that nothing shall preclude
7            a project from including an anchor tenant that does
8            not qualify as low-income. Incentives should also
9            be offered to community solar projects that are
10            100% low-income subscriber owned, which includes
11            low-income households, not-for-profit
12            organizations, and affordable housing owners. It
13            is a goal of this program that a minimum of 25% of
14            the incentives for this program be allocated to
15            community photovoltaic projects in environmental
16            justice communities.
17                (iii) Incentives for non-profits and public
18            facilities: A portion of the funds shall be
19            allocated to on-site photovoltaic distributed
20            renewable energy generation device programs to
21            serve the load associated with not-for-profit
22            customers and to photovoltaic distributed
23            renewable energy generation device programs that
24            use photovoltaic technology to serve the load
25            associated with public sector customers taking
26            service at public buildings. Contracts

 

 

09900SB2814ham002- 41 -LRB099 19990 RJF 51572 a

1            implementing programs under this item (iii) may
2            require certification that not less than the
3            prevailing wage will be paid to employees who are
4            engaged in construction and installation
5            activities associated with the project. It is a
6            goal of this program that at least 25% of the
7            incentives for this program be allocated to
8            projects located in environmental justice
9            communities. For the purposes of this item (iii),
10            "prevailing wage" shall have the meaning set forth
11            in subsection (c) of Section 1-75 of this Act.
12                (iv) Low-Income Community Solar Pilot
13            Projects: Under this program, persons, including,
14            but not limited to, electric utilities, can
15            propose pilot community solar projects. Community
16            solar projects proposed under this item (iv) may
17            exceed 2,000 kilowatts in nameplate capacity, but
18            funds granted per project may not exceed
19            $20,000,000. Proposed pilot projects must result
20            in economic benefits for the members of the
21            community in which the project will be located. The
22            application for project funds, and funding awards,
23            must include a partnership with at least one
24            community-based organization. Approved pilot
25            projects shall be competitively bid by the Agency,
26            subject to fair and equitable guidelines that

 

 

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1            include, but are not limited to, a prohibition on
2            cross-subsidization by other customers. Funding
3            available under this item (iv) may not be
4            distributed solely to a utility, and at least some
5            funds under this item (iv) must include a project
6            partnership including community ownership.
7        "Qualified person", as defined in paragraph (1) of
8    subsection (i) of this Section, does not apply to the
9    Illinois Solar for All Program described in this subsection
10    (b), and the Commission may adopt rules regarding
11    qualifications for installer trainees under subparagraphs
12    (A) and (B) of this paragraph (2) to allow for hands-on
13    training opportunities.
14        (3) Costs associated with the Illinois Solar for All
15    Program and its components described in paragraph (2) of
16    this subsection (b), including, but not limited to, costs
17    associated with procuring experts, consultants, and the
18    program administrator referenced in this subsection (b)
19    and related incremental costs, and costs related to the
20    evaluation of the Illinois Solar for All Program, may be
21    paid for using monies in the Illinois Power Agency
22    Renewable Energy Resources Fund, but the Agency or program
23    administrator shall strive to minimize administrative
24    expenses in the implementation of the program. The Agency
25    shall purchase renewable energy credits through an upfront
26    payment per installed kilowatt of nameplate capacity paid

 

 

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1    once the device is interconnected at the distribution
2    system level of the utility and is energized. The payment
3    shall be in exchange for an assignment of all renewable
4    energy credits generated by the system during the first 15
5    years of operation and shall be structured to overcome
6    barriers to participation in the solar market by the
7    low-income community. The Agency shall ensure
8    collaboration with community agencies, and allocate funds
9    to community-based groups to assist in grassroots
10    education efforts related to the Illinois Solar for All
11    Program. The Agency shall retire any renewable energy
12    credits purchased from this program and the credits shall
13    count towards the obligation under subsection (c) of
14    Section 1-75 of this Act for the electric utility to which
15    the project is interconnected.
16        (4) The Agency shall, consistent with the requirements
17    of this subsection (b), propose the Illinois Solar for All
18    Program terms, conditions, and requirements, including the
19    purchase price of renewable energy credits, through the
20    development, review, and approval of the Agency's
21    long-term renewable resources procurement plan described
22    in subsection (c) of Section 1-75 of this Act and Section
23    16-111.5 of the Public Utilities Act. In the course of the
24    Commission proceeding initiated to review the
25    implementation of the plan, including the Illinois Solar
26    for All Program proposed by the Agency, a party may propose

 

 

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1    an additional low-income solar, solar job training, or
2    solar incentive program or modifications to the programs
3    proposed by the Agency, and the Commission may approve an
4    additional program, or modifications to the Agency's
5    proposed program, if the additional or modified program
6    more effectively maximizes the benefits to low-income
7    customers after taking into account all relevant factors,
8    including, but not limited to, the extent to which a
9    competitive market for low-income solar has developed.
10    Following the Commission's approval of the Illinois Solar
11    for All Program, the Agency or a party may propose
12    adjustments to the program terms, conditions, and
13    requirements, including the price offered to new systems,
14    to ensure the long-term viability and success of the
15    program. The Commission shall review and approve any
16    modifications to the program through the plan revision
17    process described in Section 16-111.5 of the Public
18    Utilities Act.
19        (5) The Agency shall issue a request for qualifications
20    for a third-party program administrator to administer all
21    or a portion of the Illinois Solar for All Program. The
22    third-party program administrator shall be chosen through
23    a competitive bid process based on selection criteria and
24    requirements developed by the Agency, including, but not
25    limited to, experience in administering low-income energy
26    programs, providing job training opportunities, and

 

 

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1    overseeing statewide clean energy or energy efficiency
2    services. If the Agency retains a program administrator to
3    implement all or a portion of the Illinois Solar for All
4    Program, the administrator shall periodically submit
5    reports to the Agency and Commission for each program that
6    it administers, at appropriate intervals to be identified
7    by the Agency in its long-term renewable resources
8    procurement plan, provided that the reporting interval is
9    at least quarterly.
10        (6) The long-term renewable resources procurement plan
11    shall also provide for an independent evaluation of the
12    Illinois Solar for All Program. At least every 2 years, the
13    Agency shall select an independent evaluator to review and
14    report on the Illinois Solar for All Program and the
15    performance of the third-party program administrator of
16    the Illinois Solar for All Program. The evaluation shall be
17    based on objective criteria developed through a public
18    stakeholder process. The process shall include feedback
19    and participation from Illinois Solar for All Program
20    stakeholders, including participants in environmental
21    justice and historically underserved communities. The
22    report shall include a summary of the evaluation of the
23    Illinois Solar for All Program based on the stakeholder
24    developed objective criteria. The report shall include the
25    number of projects installed; the total installed capacity
26    in kilowatts; the average cost per kilowatt of installed

 

 

09900SB2814ham002- 46 -LRB099 19990 RJF 51572 a

1    capacity; the total number of jobs or job training
2    opportunities, and other economic, social, and
3    environmental benefits created; and the total
4    administrative costs expended by the Agency and program
5    administrator to implement and evaluate the program. The
6    report shall be delivered to the Commission and posted on
7    the Agency's website, and shall be used, as needed, to
8    revise the Illinois Solar for All Program. The Commission
9    shall also consider the results of the evaluation as part
10    of its review of the long-term renewable resources
11    procurement plan under subsection (c) of Section 1-75 of
12    this Act.
13        (7) If additional funding for the programs described in
14    this subsection (b) is available under subsection (k) of
15    Section 16-108 of the Public Utilities Act, then the Agency
16    shall submit a procurement plan to the Commission no later
17    than September 1, 2018, that proposes how the Agency will
18    procure programs on behalf of the applicable utility. After
19    notice and hearing, the Commission shall approve, or
20    approve with modification, the plan no later than November
21    1, 2018.
22    As used in this subsection (b), "lower-income households"
23means persons and families whose income does not exceed 80% of
24area median income, adjusted for family size and revised every
255 years.
26    For the purposes of this subsection (b), the Agency shall

 

 

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1define "environmental justice community" as part of program
2development, to ensure, to the extent practicable,
3compatibility with other agencies' definitions.
4    (b-5) After the receipt of all payments required by Section
516-115D of the Public Utilities Act, no additional funds shall
6be deposited into the Illinois Power Agency Renewable Energy
7Resources Fund unless directed by order of the Commission.
8    (b-10) After the receipt of all payments required by
9Section 16-115D of the Public Utilities Act and payment in full
10of all contracts executed by the Agency under subsections (b)
11and (i) of this Section, the Illinois Power Agency Renewable
12Energy Resources Fund shall be terminated if the balance of the
13Fund falls below $5,000. Any remaining funds, or funds
14submitted to the Fund after the date that the Fund is
15terminated, shall be transferred to the Low Income Home Energy
16Assistance Program, as authorized by the Energy Assistance Act.
17to procure renewable energy resources. Prior to June 1, 2011,
18resources procured pursuant to this Section shall be procured
19from facilities located in Illinois, provided the resources are
20available from those facilities. If resources are not available
21in Illinois, then they shall be procured in states that adjoin
22Illinois. If resources are not available in Illinois or in
23states that adjoin Illinois, then they may be purchased
24elsewhere. Beginning June 1, 2011, resources procured pursuant
25to this Section shall be procured from facilities located in
26Illinois or states that adjoin Illinois. If resources are not

 

 

09900SB2814ham002- 48 -LRB099 19990 RJF 51572 a

1available in Illinois or in states that adjoin Illinois, then
2they may be procured elsewhere. To the extent available, at
3least 75% of these renewable energy resources shall come from
4wind generation. Of the renewable energy resources procured
5pursuant to this Section at least the following specified
6percentages shall come from photovoltaics on the following
7schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by
8June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the
9renewable energy resources procured pursuant to this Section,
10at least the following percentages shall come from distributed
11renewable energy generation devices: 0.5% by June 1, 2013,
120.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter.
13To the extent available, half of the renewable energy resources
14procured from distributed renewable energy generation shall
15come from devices of less than 25 kilowatts in nameplate
16capacity. Renewable energy resources procured from distributed
17generation devices may also count towards the required
18percentages for wind and solar photovoltaics. Procurement of
19renewable energy resources from distributed renewable energy
20generation devices shall be done on an annual basis through
21multi-year contracts of no less than 5 years, and shall consist
22solely of renewable energy credits.
23    The Agency shall create credit requirements for suppliers
24of distributed renewable energy. In order to minimize the
25administrative burden on contracting entities, the Agency
26shall solicit the use of third-party organizations to aggregate

 

 

09900SB2814ham002- 49 -LRB099 19990 RJF 51572 a

1distributed renewable energy into groups of no less than one
2megawatt in installed capacity. These third-party
3organizations shall administer contracts with individual
4distributed renewable energy generation device owners. An
5individual distributed renewable energy generation device
6owner shall have the ability to measure the output of his or
7her distributed renewable energy generation device.
8    (c) (Blank). The Agency shall procure renewable energy
9resources at least once each year in conjunction with a
10procurement event for electric utilities required to comply
11with Section 1-75 of the Act and shall, whenever possible,
12enter into long-term contracts on an annual basis for a portion
13of the incremental requirement for the given procurement year.
14    (d) (Blank). The price paid to procure renewable energy
15credits using monies from the Illinois Power Agency Renewable
16Energy Resources Fund shall not exceed the winning bid prices
17paid for like resources procured for electric utilities
18required to comply with Section 1-75 of this Act.
19    (e) All renewable energy credits procured using monies from
20the Illinois Power Agency Renewable Energy Resources Fund shall
21be permanently retired.
22    (f) The selection of the third-party program manager or
23managers, the selection of the independent evaluator, and the
24procurement process described in this Section are exempt from
25the requirements of the Illinois Procurement Code, under
26Section 20-10 of that Code. The procurement process described

 

 

09900SB2814ham002- 50 -LRB099 19990 RJF 51572 a

1in this Section is exempt from the requirements of the Illinois
2Procurement Code, pursuant to Section 20-10 of that Code.
3    (g) All disbursements from the Illinois Power Agency
4Renewable Energy Resources Fund shall be made only upon
5warrants of the Comptroller drawn upon the Treasurer as
6custodian of the Fund upon vouchers signed by the Director or
7by the person or persons designated by the Director for that
8purpose. The Comptroller is authorized to draw the warrant upon
9vouchers so signed. The Treasurer shall accept all warrants so
10signed and shall be released from liability for all payments
11made on those warrants.
12    (h) The Illinois Power Agency Renewable Energy Resources
13Fund shall not be subject to sweeps, administrative charges, or
14chargebacks, including, but not limited to, those authorized
15under Section 8h of the State Finance Act, that would in any
16way result in the transfer of any funds from this Fund to any
17other fund of this State or in having any such funds utilized
18for any purpose other than the express purposes set forth in
19this Section.
20    (h-5) The Agency may assess fees to each bidder to recover
21the costs incurred in connection with a procurement process
22held under this Section.
23    (i) Supplemental procurement process.
24        (1) Within 90 days after the effective date of this
25    amendatory Act of the 98th General Assembly, the Agency
26    shall develop a one-time supplemental procurement plan

 

 

09900SB2814ham002- 51 -LRB099 19990 RJF 51572 a

1    limited to the procurement of renewable energy credits, if
2    available, from new or existing photovoltaics, including,
3    but not limited to, distributed photovoltaic generation.
4    Nothing in this subsection (i) requires procurement of wind
5    generation through the supplemental procurement.
6        Renewable energy credits procured from new
7    photovoltaics, including, but not limited to, distributed
8    photovoltaic generation, under this subsection (i) must be
9    procured from devices installed by a qualified person. In
10    its supplemental procurement plan, the Agency shall
11    establish contractually enforceable mechanisms for
12    ensuring that the installation of new photovoltaics is
13    performed by a qualified person.
14        For the purposes of this paragraph (1), "qualified
15    person" means a person who performs installations of
16    photovoltaics, including, but not limited to, distributed
17    photovoltaic generation, and who: (A) has completed an
18    apprenticeship as a journeyman electrician from a United
19    States Department of Labor registered electrical
20    apprenticeship and training program and received a
21    certification of satisfactory completion; or (B) does not
22    currently meet the criteria under clause (A) of this
23    paragraph (1), but is enrolled in a United States
24    Department of Labor registered electrical apprenticeship
25    program, provided that the person is directly supervised by
26    a person who meets the criteria under clause (A) of this

 

 

09900SB2814ham002- 52 -LRB099 19990 RJF 51572 a

1    paragraph (1); or (C) has obtained one of the following
2    credentials in addition to attesting to satisfactory
3    completion of at least 5 years or 8,000 hours of documented
4    hands-on electrical experience: (i) a North American Board
5    of Certified Energy Practitioners (NABCEP) Installer
6    Certificate for Solar PV; (ii) an Underwriters
7    Laboratories (UL) PV Systems Installer Certificate; (iii)
8    an Electronics Technicians Association, International
9    (ETAI) Level 3 PV Installer Certificate; or (iv) an
10    Associate in Applied Science degree from an Illinois
11    Community College Board approved community college program
12    in renewable energy or a distributed generation
13    technology.
14        For the purposes of this paragraph (1), "directly
15    supervised" means that there is a qualified person who
16    meets the qualifications under clause (A) of this paragraph
17    (1) and who is available for supervision and consultation
18    regarding the work performed by persons under clause (B) of
19    this paragraph (1), including a final inspection of the
20    installation work that has been directly supervised to
21    ensure safety and conformity with applicable codes.
22        For the purposes of this paragraph (1), "install" means
23    the major activities and actions required to connect, in
24    accordance with applicable building and electrical codes,
25    the conductors, connectors, and all associated fittings,
26    devices, power outlets, or apparatuses mounted at the

 

 

09900SB2814ham002- 53 -LRB099 19990 RJF 51572 a

1    premises that are directly involved in delivering energy to
2    the premises' electrical wiring from the photovoltaics,
3    including, but not limited to, to distributed photovoltaic
4    generation.
5        The renewable energy credits procured pursuant to the
6    supplemental procurement plan shall be procured using up to
7    $30,000,000 from the Illinois Power Agency Renewable
8    Energy Resources Fund. The Agency shall not plan to use
9    funds from the Illinois Power Agency Renewable Energy
10    Resources Fund in excess of the monies on deposit in such
11    fund or projected to be deposited into such fund. The
12    supplemental procurement plan shall ensure adequate,
13    reliable, affordable, efficient, and environmentally
14    sustainable renewable energy resources (including credits)
15    at the lowest total cost over time, taking into account any
16    benefits of price stability.
17        To the extent available, 50% of the renewable energy
18    credits procured from distributed renewable energy
19    generation shall come from devices of less than 25
20    kilowatts in nameplate capacity. Procurement of renewable
21    energy credits from distributed renewable energy
22    generation devices shall be done through multi-year
23    contracts of no less than 5 years. The Agency shall create
24    credit requirements for counterparties. In order to
25    minimize the administrative burden on contracting
26    entities, the Agency shall solicit the use of third parties

 

 

09900SB2814ham002- 54 -LRB099 19990 RJF 51572 a

1    to aggregate distributed renewable energy. These third
2    parties shall enter into and administer contracts with
3    individual distributed renewable energy generation device
4    owners. An individual distributed renewable energy
5    generation device owner shall have the ability to measure
6    the output of his or her distributed renewable energy
7    generation device.
8        In developing the supplemental procurement plan, the
9    Agency shall hold at least one workshop open to the public
10    within 90 days after the effective date of this amendatory
11    Act of the 98th General Assembly and shall consider any
12    comments made by stakeholders or the public. Upon
13    development of the supplemental procurement plan within
14    this 90-day period, copies of the supplemental procurement
15    plan shall be posted and made publicly available on the
16    Agency's and Commission's websites. All interested parties
17    shall have 14 days following the date of posting to provide
18    comment to the Agency on the supplemental procurement plan.
19    All comments submitted to the Agency shall be specific,
20    supported by data or other detailed analyses, and, if
21    objecting to all or a portion of the supplemental
22    procurement plan, accompanied by specific alternative
23    wording or proposals. All comments shall be posted on the
24    Agency's and Commission's websites. Within 14 days
25    following the end of the 14-day review period, the Agency
26    shall revise the supplemental procurement plan as

 

 

09900SB2814ham002- 55 -LRB099 19990 RJF 51572 a

1    necessary based on the comments received and file its
2    revised supplemental procurement plan with the Commission
3    for approval.
4        (2) Within 5 days after the filing of the supplemental
5    procurement plan at the Commission, any person objecting to
6    the supplemental procurement plan shall file an objection
7    with the Commission. Within 10 days after the filing, the
8    Commission shall determine whether a hearing is necessary.
9    The Commission shall enter its order confirming or
10    modifying the supplemental procurement plan within 90 days
11    after the filing of the supplemental procurement plan by
12    the Agency.
13        (3) The Commission shall approve the supplemental
14    procurement plan of renewable energy credits to be procured
15    from new or existing photovoltaics, including, but not
16    limited to, distributed photovoltaic generation, if the
17    Commission determines that it will ensure adequate,
18    reliable, affordable, efficient, and environmentally
19    sustainable electric service in the form of renewable
20    energy credits at the lowest total cost over time, taking
21    into account any benefits of price stability.
22        (4) The supplemental procurement process under this
23    subsection (i) shall include each of the following
24    components:
25            (A) Procurement administrator. The Agency may
26        retain a procurement administrator in the manner set

 

 

09900SB2814ham002- 56 -LRB099 19990 RJF 51572 a

1        forth in item (2) of subsection (a) of Section 1-75 of
2        this Act to conduct the supplemental procurement or may
3        elect to use the same procurement administrator
4        administering the Agency's annual procurement under
5        Section 1-75.
6            (B) Procurement monitor. The procurement monitor
7        retained by the Commission pursuant to Section
8        16-111.5 of the Public Utilities Act shall:
9                (i) monitor interactions among the procurement
10            administrator and bidders and suppliers;
11                (ii) monitor and report to the Commission on
12            the progress of the supplemental procurement
13            process;
14                (iii) provide an independent confidential
15            report to the Commission regarding the results of
16            the procurement events;
17                (iv) assess compliance with the procurement
18            plan approved by the Commission for the
19            supplemental procurement process;
20                (v) preserve the confidentiality of supplier
21            and bidding information in a manner consistent
22            with all applicable laws, rules, regulations, and
23            tariffs;
24                (vi) provide expert advice to the Commission
25            and consult with the procurement administrator
26            regarding issues related to procurement process

 

 

09900SB2814ham002- 57 -LRB099 19990 RJF 51572 a

1            design, rules, protocols, and policy-related
2            matters;
3                (vii) consult with the procurement
4            administrator regarding the development and use of
5            benchmark criteria, standard form contracts,
6            credit policies, and bid documents; and
7                (viii) perform, with respect to the
8            supplemental procurement process, any other
9            procurement monitor duties specifically delineated
10            within subsection (i) of this Section.
11            (C) Solicitation, pre-qualification, and
12        registration of bidders. The procurement administrator
13        shall disseminate information to potential bidders to
14        promote a procurement event, notify potential bidders
15        that the procurement administrator may enter into a
16        post-bid price negotiation with bidders that meet the
17        applicable benchmarks, provide supply requirements,
18        and otherwise explain the competitive procurement
19        process. In addition to such other publication as the
20        procurement administrator determines is appropriate,
21        this information shall be posted on the Agency's and
22        the Commission's websites. The procurement
23        administrator shall also administer the
24        prequalification process, including evaluation of
25        credit worthiness, compliance with procurement rules,
26        and agreement to the standard form contract developed

 

 

09900SB2814ham002- 58 -LRB099 19990 RJF 51572 a

1        pursuant to item (D) of this paragraph (4). The
2        procurement administrator shall then identify and
3        register bidders to participate in the procurement
4        event.
5            (D) Standard contract forms and credit terms and
6        instruments. The procurement administrator, in
7        consultation with the Agency, the Commission, and
8        other interested parties and subject to Commission
9        oversight, shall develop and provide standard contract
10        forms for the supplier contracts that meet generally
11        accepted industry practices as well as include any
12        applicable State of Illinois terms and conditions that
13        are required for contracts entered into by an agency of
14        the State of Illinois. Standard credit terms and
15        instruments that meet generally accepted industry
16        practices shall be similarly developed. Contracts for
17        new photovoltaics shall include a provision attesting
18        that the supplier will use a qualified person for the
19        installation of the device pursuant to paragraph (1) of
20        subsection (i) of this Section. The procurement
21        administrator shall make available to the Commission
22        all written comments it receives on the contract forms,
23        credit terms, or instruments. If the procurement
24        administrator cannot reach agreement with the parties
25        as to the contract terms and conditions, the
26        procurement administrator must notify the Commission

 

 

09900SB2814ham002- 59 -LRB099 19990 RJF 51572 a

1        of any disputed terms and the Commission shall resolve
2        the dispute. The terms of the contracts shall not be
3        subject to negotiation by winning bidders, and the
4        bidders must agree to the terms of the contract in
5        advance so that winning bids are selected solely on the
6        basis of price.
7            (E) Requests for proposals; competitive
8        procurement process. The procurement administrator
9        shall design and issue requests for proposals to supply
10        renewable energy credits in accordance with the
11        supplemental procurement plan, as approved by the
12        Commission. The requests for proposals shall set forth
13        a procedure for sealed, binding commitment bidding
14        with pay-as-bid settlement, and provision for
15        selection of bids on the basis of price, provided,
16        however, that no bid shall be accepted if it exceeds
17        the benchmark developed pursuant to item (F) of this
18        paragraph (4).
19            (F) Benchmarks. Benchmarks for each product to be
20        procured shall be developed by the procurement
21        administrator in consultation with Commission staff,
22        the Agency, and the procurement monitor for use in this
23        supplemental procurement.
24            (G) A plan for implementing contingencies in the
25        event of supplier default, Commission rejection of
26        results, or any other cause.

 

 

09900SB2814ham002- 60 -LRB099 19990 RJF 51572 a

1        (5) Within 2 business days after opening the sealed
2    bids, the procurement administrator shall submit a
3    confidential report to the Commission. The report shall
4    contain the results of the bidding for each of the products
5    along with the procurement administrator's recommendation
6    for the acceptance and rejection of bids based on the price
7    benchmark criteria and other factors observed in the
8    process. The procurement monitor also shall submit a
9    confidential report to the Commission within 2 business
10    days after opening the sealed bids. The report shall
11    contain the procurement monitor's assessment of bidder
12    behavior in the process as well as an assessment of the
13    procurement administrator's compliance with the
14    procurement process and rules. The Commission shall review
15    the confidential reports submitted by the procurement
16    administrator and procurement monitor and shall accept or
17    reject the recommendations of the procurement
18    administrator within 2 business days after receipt of the
19    reports.
20        (6) Within 3 business days after the Commission
21    decision approving the results of a procurement event, the
22    Agency shall enter into binding contractual arrangements
23    with the winning suppliers using the standard form
24    contracts.
25        (7) The names of the successful bidders and the average
26    of the winning bid prices for each contract type and for

 

 

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1    each contract term shall be made available to the public
2    within 2 days after the supplemental procurement event. The
3    Commission, the procurement monitor, the procurement
4    administrator, the Agency, and all participants in the
5    procurement process shall maintain the confidentiality of
6    all other supplier and bidding information in a manner
7    consistent with all applicable laws, rules, regulations,
8    and tariffs. Confidential information, including the
9    confidential reports submitted by the procurement
10    administrator and procurement monitor pursuant to this
11    Section, shall not be made publicly available and shall not
12    be discoverable by any party in any proceeding, absent a
13    compelling demonstration of need, nor shall those reports
14    be admissible in any proceeding other than one for law
15    enforcement purposes.
16        (8) The supplemental procurement provided in this
17    subsection (i) shall not be subject to the requirements and
18    limitations of subsections (c) and (d) of this Section.
19        (9) Expenses incurred in connection with the
20    procurement process held pursuant to this Section,
21    including, but not limited to, the cost of developing the
22    supplemental procurement plan, the procurement
23    administrator, procurement monitor, and the cost of the
24    retirement of renewable energy credits purchased pursuant
25    to the supplemental procurement shall be paid for from the
26    Illinois Power Agency Renewable Energy Resources Fund. The

 

 

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1    Agency shall enter into an interagency agreement with the
2    Commission to reimburse the Commission for its costs
3    associated with the procurement monitor for the
4    supplemental procurement process.
5(Source: P.A. 97-616, eff. 10-26-11; 98-672, eff. 6-30-14.)
 
6    (20 ILCS 3855/1-75)
7    Sec. 1-75. Planning and Procurement Bureau. The Planning
8and Procurement Bureau has the following duties and
9responsibilities:
10    (a) The Planning and Procurement Bureau shall each year,
11beginning in 2008, develop procurement plans and conduct
12competitive procurement processes in accordance with the
13requirements of Section 16-111.5 of the Public Utilities Act
14for the eligible retail customers of electric utilities that on
15December 31, 2005 provided electric service to at least 100,000
16customers in Illinois. Beginning with the delivery year
17commencing on June 1, 2017, the Planning and Procurement Bureau
18shall develop plans and processes for the procurement of zero
19emission credits from zero emission facilities under
20subsection (d-5) of this Section for all of the utilities'
21retail customers. The Planning and Procurement Bureau shall
22also develop procurement plans and conduct competitive
23procurement processes in accordance with the requirements of
24Section 16-111.5 of the Public Utilities Act for the eligible
25retail customers of small multi-jurisdictional electric

 

 

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1utilities that (i) on December 31, 2005 served less than
2100,000 customers in Illinois and (ii) request a procurement
3plan for their Illinois jurisdictional load. This Section shall
4not apply to a small multi-jurisdictional utility until such
5time as a small multi-jurisdictional utility requests the
6Agency to prepare a procurement plan for their Illinois
7jurisdictional load. For the purposes of this Section, the term
8"eligible retail customers" has the same definition as found in
9Section 16-111.5(a) of the Public Utilities Act.
10    Beginning with the planning process for the plan or plans
11to be implemented in the 2017 delivery year, the Agency shall
12no longer include the procurement of renewable energy resources
13in the annual procurement plans required by this subsection (a)
14and shall instead develop a long-term renewable resources
15procurement plan in accordance with subsection (c) of this
16Section and Section 16-111.5 of the Public Utilities Act.
17    Notwithstanding the provisions of this Act or the Public
18Utilities Act, the Planning and Procurement Bureau shall for
19each year, beginning with the delivery year commencing June 1,
202018, conduct competitive procurement processes in accordance
21with Section 16-111.5 of the Public Utilities Act, the results
22of which shall be subject to approval of the Commission,
23through which electric utilities that serve less than 3,000,000
24retail customers but more than 500,000 retail customers in this
25State shall procure capacity required for all of the electric
26utility's retail customers that are located in the Applicable

 

 

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1Local Resource Zone of the Midcontinent Independent System
2Operator, Inc., or its successor. For purposes of this Section,
3"Local Resource Zone" shall have the meaning set forth in the
4open access transmission and energy markets tariff of the
5Midcontinent Independent System Operator, Inc., or its
6successor, as such tariff may be updated from time to time, and
7Applicable Local Resource Zone means the Local Resource Zone or
8Zones within Midcontinent Independent System Operator, Inc.,
9or its successor, that incorporates all retail customers of
10electric utilities that serve less than 3,000,000 retail
11customers but more than 500,000 retail customers in this State.
12        (1) The Agency shall each year, beginning in 2008, as
13    needed, issue a request for qualifications for experts or
14    expert consulting firms to develop the procurement plans in
15    accordance with Section 16-111.5 of the Public Utilities
16    Act. In order to qualify an expert or expert consulting
17    firm must have:
18            (A) direct previous experience assembling
19        large-scale power supply plans or portfolios for
20        end-use customers;
21            (B) an advanced degree in economics, mathematics,
22        engineering, risk management, or a related area of
23        study;
24            (C) 10 years of experience in the electricity
25        sector, including managing supply risk;
26            (D) expertise in wholesale electricity market

 

 

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1        rules, including those established by the Federal
2        Energy Regulatory Commission and regional transmission
3        organizations;
4            (E) expertise in credit protocols and familiarity
5        with contract protocols;
6            (F) adequate resources to perform and fulfill the
7        required functions and responsibilities; and
8            (G) the absence of a conflict of interest and
9        inappropriate bias for or against potential bidders or
10        the affected electric utilities.
11        (2) The Agency shall each year, as needed, issue a
12    request for qualifications for a procurement administrator
13    to conduct the competitive procurement processes in
14    accordance with Section 16-111.5 of the Public Utilities
15    Act. In order to qualify an expert or expert consulting
16    firm must have:
17            (A) direct previous experience administering a
18        large-scale competitive procurement process;
19            (B) an advanced degree in economics, mathematics,
20        engineering, or a related area of study;
21            (C) 10 years of experience in the electricity
22        sector, including risk management experience;
23            (D) expertise in wholesale electricity market
24        rules, including those established by the Federal
25        Energy Regulatory Commission and regional transmission
26        organizations;

 

 

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1            (E) expertise in credit and contract protocols;
2            (F) adequate resources to perform and fulfill the
3        required functions and responsibilities; and
4            (G) the absence of a conflict of interest and
5        inappropriate bias for or against potential bidders or
6        the affected electric utilities.
7        (3) The Agency shall provide affected utilities and
8    other interested parties with the lists of qualified
9    experts or expert consulting firms identified through the
10    request for qualifications processes that are under
11    consideration to develop the procurement plans and to serve
12    as the procurement administrator. The Agency shall also
13    provide each qualified expert's or expert consulting
14    firm's response to the request for qualifications. All
15    information provided under this subparagraph shall also be
16    provided to the Commission. The Agency may provide by rule
17    for fees associated with supplying the information to
18    utilities and other interested parties. These parties
19    shall, within 5 business days, notify the Agency in writing
20    if they object to any experts or expert consulting firms on
21    the lists. Objections shall be based on:
22            (A) failure to satisfy qualification criteria;
23            (B) identification of a conflict of interest; or
24            (C) evidence of inappropriate bias for or against
25        potential bidders or the affected utilities.
26        The Agency shall remove experts or expert consulting

 

 

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1    firms from the lists within 10 days if there is a
2    reasonable basis for an objection and provide the updated
3    lists to the affected utilities and other interested
4    parties. If the Agency fails to remove an expert or expert
5    consulting firm from a list, an objecting party may seek
6    review by the Commission within 5 days thereafter by filing
7    a petition, and the Commission shall render a ruling on the
8    petition within 10 days. There is no right of appeal of the
9    Commission's ruling.
10        (4) The Agency shall issue requests for proposals to
11    the qualified experts or expert consulting firms to develop
12    a procurement plan for the affected utilities and to serve
13    as procurement administrator.
14        (5) The Agency shall select an expert or expert
15    consulting firm to develop procurement plans based on the
16    proposals submitted and shall award contracts of up to 5
17    years to those selected.
18        (6) The Agency shall select an expert or expert
19    consulting firm, with approval of the Commission, to serve
20    as procurement administrator based on the proposals
21    submitted. If the Commission rejects, within 5 days, the
22    Agency's selection, the Agency shall submit another
23    recommendation within 3 days based on the proposals
24    submitted. The Agency shall award a 5-year contract to the
25    expert or expert consulting firm so selected with
26    Commission approval.

 

 

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1    (b) The experts or expert consulting firms retained by the
2Agency shall, as appropriate, prepare procurement plans, and
3conduct a competitive procurement process as prescribed in
4Section 16-111.5 of the Public Utilities Act, to ensure
5adequate, reliable, affordable, efficient, and environmentally
6sustainable electric service at the lowest total cost over
7time, taking into account any benefits of price stability, for
8the applicable eligible retail customers of electric utilities
9that on December 31, 2005 provided electric service to at least
10100,000 customers in the State of Illinois, and for eligible
11Illinois retail customers of small multi-jurisdictional
12electric utilities that (i) on December 31, 2005 served less
13than 100,000 customers in Illinois and (ii) request a
14procurement plan for their Illinois jurisdictional load.
15    (c) Renewable portfolio standard.
16        (1)(A) The Agency shall develop a long-term renewable
17    resources procurement plan that shall include procurement
18    programs and competitive procurement events necessary to
19    meet the goals set forth in this subsection (c). The
20    initial long-term renewable resources procurement plan
21    shall be released for comment no later than 120 days after
22    the effective date of this amendatory Act of the 99th
23    General Assembly. The Agency shall review, and may revise
24    on an expedited basis, the long-term renewable resources
25    procurement plan at least every 2 years, which shall be
26    conducted in conjunction with the procurement process

 

 

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1    under Section 16-111.5 of the Public Utilities Act to the
2    extent practicable to minimize administrative expense. The
3    long-term renewable resources procurement plans shall be
4    subject to review and approval by the Commission under
5    Section 16-111.5 of the Public Utilities Act.
6        (B) Subject to subparagraph (F) of this paragraph (1),
7    the long-term renewable resources procurement plan shall
8    include the procurement of renewable energy credits to meet
9    at least the following overall percentages: 13% by the 2017
10    delivery year; increasing by at least 1.5% each delivery
11    year thereafter to at least 25% by the 2025 delivery year;
12    and continuing at no less than 25% for each delivery year
13    thereafter. In the event of a conflict between these goals
14    and the new wind and new photovoltaic procurement
15    requirements described in items (i) through (iii) of
16    subparagraph (C) of this paragraph (1), the long-term plan
17    shall prioritize compliance with the new wind and new
18    photovoltaic procurement requirements described in items
19    (i) through (iii) of subparagraph (C) of this paragraph (1)
20    over the annual percentage targets described in this
21    subparagraph (B).
22    For the delivery year beginning June 1, 2017, the
23procurement plan shall include cost-effective renewable energy
24resources equal to at least 13% of each utility's load for
25eligible retail customers and 13% of the applicable portion of
26each utility's load for retail customers who are not eligible

 

 

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1retail customers, which applicable portion shall equal 50% of
2the utility's load for retail customers who are not eligible
3retail customers on February 28, 2017.
4    For the delivery year beginning June 1, 2018, the
5procurement plan shall include cost-effective renewable energy
6resources equal to at least 14.5% of each utility's load for
7eligible retail customers and 14.5% of the applicable portion
8of each utility's load for retail customers who are not
9eligible retail customers, which applicable portion shall
10equal 75% of the utility's load for retail customers who are
11not eligible retail customers on February 28, 2017.
12    For the delivery year beginning June 1, 2019, and for each
13year thereafter, the procurement plans shall include
14cost-effective renewable energy resources equal to a minimum
15percentage of each utility's load for all retail customers as
16follows: 16% by June 1, 2019; increasing by 1.5% each year
17thereafter to 25% by June 1, 2025; and 25% by June 1, 2026 and
18each year thereafter.
19        For each delivery year, the Agency shall first
20    recognize each utility's obligations for that delivery
21    year under existing contracts. Any renewable energy
22    credits under existing contracts, including renewable
23    energy credits as part of renewable energy resources, shall
24    be used to meet the goals set forth in this subsection (c)
25    for the delivery year.
26        (C) Of the renewable energy credits procured under this

 

 

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1    subsection (c), at least 75% shall come from wind and
2    photovoltaic projects. The long-term renewable resources
3    procurement plan described in subparagraph (A) of this
4    paragraph (1) shall include the procurement of renewable
5    energy credits in amounts equal to at least the following:
6            (i) By the end of the 2020 delivery year:
7                At least 2,000,000 renewable energy credits
8            for each delivery year shall come from new wind
9            projects; and
10                At least 2,000,000 renewable energy credits
11            for each delivery year shall come from new
12            photovoltaic projects; of that amount, to the
13            extent possible, the Agency shall procure: at
14            least 50% from solar photovoltaic projects using
15            the program outlined in subparagraph (K) of this
16            paragraph (1) from distributed renewable energy
17            generation devices or community renewable
18            generation projects; at least 40% from
19            utility-scale solar projects; at least 2% from
20            brownfield site photovoltaic projects that are not
21            community renewable generation projects; and the
22            remainder shall be determined through the
23            long-term planning process described in
24            subparagraph (A) of this paragraph (1).
25            (ii) By the end of the 2025 delivery year:
26                At least 3,000,000 renewable energy credits

 

 

09900SB2814ham002- 72 -LRB099 19990 RJF 51572 a

1            for each delivery year shall come from new wind
2            projects; and
3                At least 3,000,000 renewable energy credits
4            for each delivery year shall come from new
5            photovoltaic projects; of that amount, to the
6            extent possible, the Agency shall procure: at
7            least 50% from solar photovoltaic projects using
8            the program outlined in subparagraph (K) of this
9            paragraph (1) from distributed renewable energy
10            devices or community renewable generation
11            projects; at least 40% from utility-scale solar
12            projects; at least 2% from brownfield site
13            photovoltaic projects that are not community
14            renewable generation projects; and the remainder
15            shall be determined through the long-term planning
16            process described in subparagraph (A) of this
17            paragraph (1).
18            (iii) By the end of the 2030 delivery year:
19                At least 4,000,000 renewable energy credits
20            for each delivery year shall come from new wind
21            projects; and
22                At least 4,000,000 renewable energy credits
23            for each delivery year shall come from new
24            photovoltaic projects; of that amount, to the
25            extent possible, the Agency shall procure: at
26            least 50% from solar photovoltaic projects using

 

 

09900SB2814ham002- 73 -LRB099 19990 RJF 51572 a

1            the program outlined in subparagraph (K) of this
2            paragraph (1) from distributed renewable energy
3            devices or community renewable generation
4            projects; at least 40% from utility-scale solar
5            projects; at least 2% from brownfield site
6            photovoltaic projects that are not community
7            renewable generation projects; and the remainder
8            shall be determined through the long-term planning
9            process described in subparagraph (A) of this
10            paragraph (1).
11            For purposes of this Section:
12                "New wind projects" means wind renewable
13            energy facilities that are energized after June 1,
14            2017 for the delivery year commencing June 1, 2017
15            or within 3 years after the date the Commission
16            approves contracts for subsequent delivery years.
17            For projects located within Illinois, the owner of
18            the new wind project must certify that not less
19            than the prevailing wage was or will be paid to
20            employees who are engaged in construction
21            activities associated with the project.
22                "New photovoltaic projects" means photovoltaic
23            renewable energy facilities that are energized
24            after June 1, 2017. For projects over 1,000
25            kilowatts in nameplate capacity, the owner of the
26            new photovoltaic project must certify that not

 

 

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1            less than the prevailing wage was or will be paid
2            to employees who are engaged in construction
3            activities associated with the project.
4            Photovoltaic projects developed under Section 1-56
5            of this Act shall not apply towards the new
6            photovoltaic project requirements in this
7            subparagraph (C).
8                "Prevailing wage" has the same definition as
9            in subparagraph (F) of paragraph (3) of subsection
10            (a) of Section 5.5 of the Illinois Enterprise Zone
11            Act.
12        (D) Renewable energy credits shall be cost effective.
13    For purposes of this subsection (c), "cost effective" means
14    that the costs of procuring renewable energy resources do
15    not cause the limit stated in subparagraph (E) of this
16    paragraph (1) to be exceeded and, for renewable energy
17    credits procured through a competitive procurement event,
18    do not exceed benchmarks based on market prices for like
19    products in the region. For purposes of this subsection
20    (c), "like products" means contracts for renewable energy
21    credits from the same technology, same vintage (new or
22    existing), the same or substantially similar quantity, and
23    the same or substantially similar contract length and
24    structure. Benchmarks shall be developed by the
25    procurement administrator, in consultation with the
26    Commission staff, Agency staff, and the procurement

 

 

09900SB2814ham002- 75 -LRB099 19990 RJF 51572 a

1    monitor and shall be subject to Commission review and
2    approval. If price benchmarks for like products in the
3    region are not available, the procurement administrator
4    shall establish price benchmarks based on publicly
5    available data on regional technology costs and expected
6    current and future regional energy prices. The benchmarks
7    in this Section shall not be used to curtail or otherwise
8    reduce contractual obligations entered into by or through
9    the Agency prior to the effective date of this amendatory
10    Act of the 99th General Assembly.
11        (E) For purposes of this subsection (c), the required
12    procurement of cost-effective renewable energy resources
13    for a particular year commencing prior to June 1, 2017
14    shall be measured as a percentage of the actual amount of
15    electricity (megawatt-hours) supplied by the electric
16    utility to eligible retail customers in the delivery year
17    ending immediately prior to the procurement, and, for
18    delivery years commencing on and after June 1, 2017, the
19    required procurement of cost-effective renewable energy
20    resources for a particular year shall be measured as a
21    percentage of the actual amount of electricity
22    (megawatt-hours) delivered by the electric utility in the
23    delivery year ending immediately prior to the procurement,
24    to all retail customers in its service territory. For
25    purposes of this subsection (c), the amount paid per
26    kilowatthour means the total amount paid for electric

 

 

09900SB2814ham002- 76 -LRB099 19990 RJF 51572 a

1    service expressed on a per kilowatthour basis. For purposes
2    of this subsection (c), the total amount paid for electric
3    service includes without limitation amounts paid for
4    supply, transmission, distribution, surcharges, and add-on
5    taxes.
6        Notwithstanding the requirements of this subsection
7    (c), the total of renewable energy resources procured under
8    the procurement plan for any single year shall be subject
9    to the limitations of this subparagraph (E). Such
10    procurement shall be reduced for all retail customers based
11    on the amount necessary to limit the annual estimated
12    average net increase due to the costs of these resources
13    included in the amounts paid by eligible retail customers
14    in connection with electric service to no more than the
15    greater of 2.015% of the amount paid per kilowatthour by
16    those customers during the year ending May 31, 2007 or the
17    incremental amount per kilowatthour paid for these
18    resources in 2011. To arrive at a maximum dollar amount of
19    renewable energy resources to be procured for the
20    particular delivery year, the resulting per kilowatthour
21    amount shall be applied to the actual amount of
22    kilowatthours of electricity delivered, or applicable
23    portion of such amount as specified in paragraph (1) of
24    this subsection (c), as applicable, by the electric utility
25    in the delivery year immediately prior to the procurement
26    to all retail customers in its service territory. The

 

 

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1    calculations required by this subparagraph (E) shall be
2    made only once for each delivery year at the time that the
3    renewable energy resources are procured. Once the
4    determination as to the amount of renewable energy
5    resources to procure is made based on the calculations set
6    forth in this subparagraph (E) and the contracts procuring
7    those amounts are executed, no subsequent rate impact
8    determinations shall be made and no adjustments to those
9    contract amounts shall be allowed. All costs incurred under
10    such contracts shall be fully recoverable by the electric
11    utility as provided in this Section.
12        (F) If the limitation on the amount of renewable energy
13    resources procured in subparagraph (E) of this paragraph
14    (1) prevents the Agency from meeting all of the goals in
15    this subsection (c), the Agency's long-term plan shall
16    prioritize compliance with the requirements of this
17    subsection (c) regarding renewable energy credits in the
18    following order:
19            (i) renewable energy credits under existing
20        contractual obligations;
21            (i-5)funding for the Illinois Solar for All
22        Program, as described in subparagraph (O) of this
23        paragraph (1);
24            (ii) renewable energy credits necessary to comply
25        with the new wind and new photovoltaic procurement
26        requirements described in items (i) through (iii) of

 

 

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1        subparagraph (C) of this paragraph (1); and
2            (iii) renewable energy credits necessary to meet
3        the remaining requirements of this subsection (c).
4        (G) The following provisions shall apply to the
5    Agency's procurement of renewable energy credits under
6    this subsection (c):
7            (i) The Agency shall conduct an initial forward
8        procurement for renewable energy credits from new
9        utility-scale wind projects within 120 days after the
10        effective date of this amendatory Act of the 99th
11        General Assembly. For the purposes of this initial
12        forward procurement, the Agency shall solicit 15-year
13        contracts for delivery of 1,000,000 renewable energy
14        credits delivered annually from new utility-scale wind
15        projects to begin delivery on June 1, 2019, if
16        available, but not later than June 1, 2021. Payments to
17        suppliers of renewable energy credits shall commence
18        upon delivery. Renewable energy credits procured under
19        this initial procurement shall be included in the
20        Agency's long-term plan and shall apply to all
21        renewable energy goals in this subsection (c).
22            (ii) The Agency shall conduct an initial forward
23        procurement for renewable energy credits from new
24        utility-scale solar projects and brownfield site
25        photovoltaic projects within one year of the effective
26        date of this amendatory Act of the 99th General

 

 

09900SB2814ham002- 79 -LRB099 19990 RJF 51572 a

1        Assembly. For the purposes of this initial forward
2        procurement, the Agency shall solicit 15-year
3        contracts for delivery of 1,000,000 renewable energy
4        credits delivered annually from new utility-scale
5        solar projects and brownfield site photovoltaic
6        projects to begin delivery on June 1, 2019, if
7        available, but not later than June 1, 2021. The Agency
8        may structure this initial procurement in one or more
9        discrete procurement events. Payments to suppliers of
10        renewable energy credits shall commence upon delivery.
11        Renewable energy credits procured under this initial
12        procurement shall be included in the Agency's
13        long-term plan and shall apply to all renewable energy
14        goals in this subsection (c).
15            (iii) Subsequent forward procurements for
16        utility-scale wind projects shall solicit at least
17        1,000,000 renewable energy credits delivered annually
18        per procurement event and shall be planned, scheduled,
19        and designed such that the cumulative amount of
20        renewable energy credits delivered from all new wind
21        projects in each delivery year shall not exceed the
22        Agency's projection of the cumulative amount of
23        renewable energy credits that will be delivered from
24        all new photovoltaic projects, including utility-scale
25        and distributed photovoltaic devices, in the same
26        delivery year at the time scheduled for wind contract

 

 

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1        delivery.
2            (iv) If, at any time after the time set for
3        delivery of renewable energy credits pursuant to the
4        initial procurements in items (i) and (ii) of this
5        subparagraph (G), the cumulative amount of renewable
6        energy credits projected to be delivered from all new
7        wind projects in a given delivery year exceeds the
8        cumulative amount of renewable energy credits
9        projected to be delivered from all new photovoltaic
10        projects in that delivery year by 200,000 or more
11        renewable energy credits, then the Agency shall within
12        60 days adjust the procurement programs in the
13        long-term renewable resources procurement plan to
14        ensure that the projected cumulative amount of
15        renewable energy credits to be delivered from all new
16        wind projects does not exceed the projected cumulative
17        amount of renewable energy credits to be delivered from
18        all new photovoltaic projects by 200,000 or more
19        renewable energy credits, provided that nothing in
20        this Section shall preclude the projected cumulative
21        amount of renewable energy credits to be delivered from
22        all new photovoltaic projects from exceeding the
23        projected cumulative amount of renewable energy
24        credits to be delivered from all new wind projects in
25        each delivery year and provided further that nothing in
26        this item (iv) shall require the curtailment of an

 

 

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1        executed contract. The Agency shall update, on a
2        quarterly basis, its projection of the renewable
3        energy credits to be delivered from all projects in
4        each delivery year. Notwithstanding anything to the
5        contrary, the Agency may adjust the timing of
6        procurement events conducted under this subparagraph
7        (G). The long-term renewable resources procurement
8        plan shall set forth the process by which the
9        adjustments may be made.
10            (v) All procurements under this subparagraph (G)
11        shall comply with the geographic requirements in
12        subparagraph (I) of this paragraph (1) and shall follow
13        the procurement processes and procedures described in
14        this Section and Section 16-111.5 of the Public
15        Utilities Act to the extent practicable, and these
16        processes and procedures may be expedited to
17        accommodate the schedule established by this
18        subparagraph (G).
19        (H) The procurement of renewable energy resources for a
20    given delivery year shall be reduced as described in this
21    subparagraph (H) if an alternate retail electric supplier
22    meets the requirements described in this subparagraph (H).
23            (i) Within 45 days after the effective date of this
24        amendatory Act of the 99th General Assembly, an
25        alternative retail electric supplier or its successor
26        shall submit an informational filing to the Illinois

 

 

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1        Commerce Commission certifying that, as of December
2        31, 2015, the alternative retail electric supplier
3        owned one or more electric generating facilities that
4        generates renewable energy resources as defined in
5        Section 1-10 of this Act, provided that these
6        facilities are not powered by wind or photovoltaics,
7        and the facilities generate one renewable energy
8        credit for each megawatthour of energy produced from
9        the facility.
10            The informational filing shall identify each
11        facility that was eligible to satisfy the alternative
12        retail electric supplier's obligations under Section
13        16-115D of the Public Utilities Act as described in
14        this item (i).
15            (ii) For a given delivery year, the alternative
16        retail electric supplier may elect to supply its retail
17        customers with renewable energy credits from the
18        facility or facilities described in item (i) of this
19        subparagraph (H) that continue to be owned by the
20        alternative retail electric supplier.
21            (iii) The alternative retail electric supplier
22        shall notify the Agency and the applicable utility, no
23        later than February 28 of the year preceding the
24        applicable delivery year, of its election under item
25        (ii) of this subparagraph (H) to supply renewable
26        energy credits to retail customers of the utility. Such

 

 

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1        election shall identify the amount of renewable energy
2        credits to be supplied by the alternative retail
3        electric supplier to the utility's retail customers
4        and the source of the renewable energy credits
5        identified in the informational filing as described in
6        item (i) of this subparagraph (H), subject to the
7        following limitations:
8                For the delivery year beginning June 1, 2018,
9            the maximum amount of renewable energy credits to
10            be supplied by an alternative retail electric
11            supplier under this subparagraph (H) shall be 68%
12            multiplied by 25% multiplied by 14.5% multiplied
13            by the amount of metered electricity
14            (megawatt-hours) delivered by the alternative
15            retail electric supplier to Illinois retail
16            customers during the delivery year ending May 31,
17            2016.
18                For delivery years beginning June 1, 2019 and
19            each year thereafter, the maximum amount of
20            renewable energy credits to be supplied by an
21            alternative retail electric supplier under this
22            subparagraph (H) shall be 68% multiplied by 50%
23            multiplied by 16% multiplied by the amount of
24            metered electricity (megawatt-hours) delivered by
25            the alternative retail electric supplier to
26            Illinois retail customers during the delivery year

 

 

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1            ending May 31, 2016, provided that the 16% value
2            shall increase by 1.5% each delivery year
3            thereafter to 25% by the delivery year beginning
4            June 1, 2025, and thereafter the 25% value shall
5            apply to each delivery year.
6            For each delivery year, the total amount of
7        renewable energy credits supplied by all alternative
8        retail electric suppliers under this subparagraph (H)
9        shall not exceed 9% of the Illinois target renewable
10        energy credit quantity. The Illinois target renewable
11        energy credit quantity for the delivery year beginning
12        June 1, 2018 is 14.5% multiplied by the total amount of
13        metered electricity (megawatt-hours) delivered in the
14        delivery year immediately preceding that delivery
15        year, provided that the 14.5% shall increase by 1.5%
16        each delivery year thereafter to 25% by the delivery
17        year beginning June 1, 2025, and thereafter the 25%
18        value shall apply to each delivery year.
19            If the requirements set forth in items (i) through
20        (iii) of this subparagraph (H) are met, the charges
21        that would otherwise be applicable to the retail
22        customers of the alternative retail electric supplier
23        under paragraph (6) of this subsection (c) for the
24        applicable delivery year shall be reduced by the ratio
25        of the quantity of renewable energy credits supplied by
26        the alternative retail electric supplier compared to

 

 

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1        that supplier's target renewable energy credit
2        quantity. The supplier's target renewable energy
3        credit quantity for the delivery year beginning June 1,
4        2018 is 14.5% multiplied by the total amount of metered
5        electricity (megawatt-hours) delivered by the
6        alternative retail supplier in that delivery year,
7        provided that the 14.5% shall increase by 1.5% each
8        delivery year thereafter to 25% by the delivery year
9        beginning June 1, 2025, and thereafter the 25% value
10        shall apply to each delivery year.
11            On or before April 1 of each year, the Agency shall
12        annually publish a report on its website that
13        identifies the aggregate amount of renewable energy
14        credits supplied by alternative retail electric
15        suppliers under this subparagraph (H).
16        (I) The Agency shall design its long-term renewable
17    energy procurement plan to maximize the State's interest in
18    the health, safety, and welfare of its residents, including
19    but not limited to minimizing sulfur dioxide, nitrogen
20    oxide, particulate matter and other pollution that
21    adversely affects public health in this State, increasing
22    fuel and resource diversity in this State, enhancing the
23    reliability and resiliency of the electricity distribution
24    system in this State, meeting goals to limit carbon dioxide
25    emissions under federal or State law, and contributing to a
26    cleaner and healthier environment for the citizens of this

 

 

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1    State. In order to further these legislative purposes,
2    renewable energy credits shall be eligible to be counted
3    toward the renewable energy requirements of this
4    subsection (c) if they are generated from facilities
5    located in this State. The Agency may qualify renewable
6    energy credits from facilities located in states adjacent
7    to Illinois if the generator demonstrates and the Agency
8    determines that the operation of such facility or
9    facilities will help promote the State's interest in the
10    health, safety, and welfare of its residents based on the
11    public interest criteria described above. To ensure that
12    the public interest criteria are applied to the procurement
13    and given full effect, the Agency's long-term procurement
14    plan shall describe in detail how each public interest
15    factor shall be considered and weighted for facilities
16    located in states adjacent to Illinois.
17        (J) In order to promote the competitive development of
18    renewable energy resources in furtherance of the State's
19    interest in the health, safety, and welfare of its
20    residents, renewable energy credits shall not be eligible
21    to be counted toward the renewable energy requirements of
22    this subsection (c) if they are sourced from a generating
23    unit whose costs were being recovered through rates
24    regulated by this State or any other state or states on or
25    after January 1, 2017. Each contract executed to purchase
26    renewable energy credits under this subsection (c) shall

 

 

09900SB2814ham002- 87 -LRB099 19990 RJF 51572 a

1    provide for the contract's termination if the costs of the
2    generating unit supplying the renewable energy credits
3    subsequently begin to be recovered through rates regulated
4    by this State or any other state or states. Each contract
5    shall further provide that, in that event, the supplier of
6    the credits must return 110% of all payments received under
7    the contract. Amounts returned under the requirements of
8    this subparagraph (J) shall be retained by the utility and
9    all of these amounts shall be used for the procurement of
10    additional renewable energy credits from new wind or new
11    photovoltaic resources as defined in this subsection (c).
12    The long-term plan shall provide that these renewable
13    energy credits shall be procured in the next procurement
14    event.
15        Notwithstanding the limitations of this subparagraph
16    (J), renewable energy credits sourced from generating
17    units that are constructed, purchased, owned, or leased by
18    an electric utility as part of an approved project,
19    program, or pilot under either Section 1-56 of this Act or
20    Section 16-108.9 of the Public Utilities Act shall be
21    eligible to be counted toward the renewable energy
22    requirements of this subsection (c), regardless of how the
23    costs of these units are recovered.
24        (K) The long-term renewable resources procurement plan
25    developed by the Agency in accordance with subparagraph (A)
26    of this paragraph (1) shall include an Adjustable Block

 

 

09900SB2814ham002- 88 -LRB099 19990 RJF 51572 a

1    program for the procurement of renewable energy credits
2    from new photovoltaic projects that are distributed
3    renewable energy generation devices or new photovoltaic
4    community renewable generation projects. The Adjustable
5    Block program shall be designed to provide a transparent
6    schedule of prices and quantities to enable the
7    photovoltaic market to scale up and for renewable energy
8    credit prices to adjust at a predictable rate over time.
9    The prices set by the declining block program can be
10    reflected as a set value or as the product of a formula.
11        The Adjustable Block program shall include for each
12    category of eligible projects: (i) a schedule of standard
13    block purchase prices to be offered; (ii) a series of
14    steps, with associated nameplate capacity and purchase
15    prices that adjust from step to step; and (iii) automatic
16    opening of the next step as soon as the nameplate capacity
17    and available purchase prices for an open step are fully
18    committed or reserved. Only projects energized on or after
19    June 1, 2017 shall be eligible for the Adjustable Block
20    program. For each block group the Agency shall determine
21    the number of blocks, the amount of generation capacity in
22    each block, and the purchase price for each block, provided
23    that the purchase price provided and the total amount of
24    generation in all blocks for all block groups shall be
25    sufficient to meet the goals in this subsection (c). The
26    Agency may periodically review its prior decisions

 

 

09900SB2814ham002- 89 -LRB099 19990 RJF 51572 a

1    establishing the number of blocks, the amount of generation
2    capacity in each block, and the purchase price for each
3    block, and may propose, on an expedited basis, changes to
4    these previously set values, including but not limited to
5    redistributing these amounts and the available funds as
6    necessary and appropriate, subject to Commission approval
7    as part of the periodic plan revision process described in
8    Section 16-111.5 of the Public Utilities Act. The Agency
9    may define different block sizes, purchase prices, or other
10    distinct terms and conditions for projects located in
11    different utility service territories if the Agency deems
12    it necessary to meet the goals in this subsection (c).
13        The Adjustable Block program shall include at least the
14    following block groups in at least the following amounts,
15    which may be adjusted upon review by the Agency and
16    approval by the Commission as described in this
17    subparagraph (K):
18            (i) At least 25% from distributed renewable energy
19        generation devices with a nameplate capacity of no more
20        than 10 kilowatts.
21            (ii) At least 25% from distributed renewable
22        energy generation devices with a nameplate capacity of
23        more than 10 kilowatts and no more than 2,000
24        kilowatts. The Agency may create sub-categories within
25        this category to account for the differences between
26        projects for small commercial customers, large

 

 

09900SB2814ham002- 90 -LRB099 19990 RJF 51572 a

1        commercial customers, and public or non-profit
2        customers.
3            (iii) At least 25% from photovoltaic community
4        renewable generation projects.
5            (iv) The remaining 25% shall be allocated as
6        specified by the Agency in the long-term renewable
7        resources procurement plan.
8        The Adjustable Block program shall be designed to
9    ensure that renewable energy credits are procured from
10    photovoltaic projects located throughout the State.
11        (L) The procurement of photovoltaic renewable energy
12    credits under items (i) through (iv) of subparagraph (K) of
13    this paragraph (1) shall be subject to the following
14    contract and payment terms:
15            (i) The Agency shall procure contracts of at least
16        15 years in length.
17            (ii) For those renewable energy credits that
18        qualify and are procured under item (i) of subparagraph
19        (K) of this paragraph (1), the renewable energy credit
20        purchase price shall be paid in full by the contracting
21        utilities at the time that the facility producing the
22        renewable energy credits is interconnected at the
23        distribution system level of the utility and
24        energized. The electric utility shall receive and
25        retire all renewable energy credits generated by the
26        project for the first 15 years of operation.

 

 

09900SB2814ham002- 91 -LRB099 19990 RJF 51572 a

1            (iii) For those renewable energy credits that
2        qualify and are procured under item (ii) and (iii) of
3        subparagraph (K) of this paragraph (1) and any
4        additional categories of distributed generation
5        included in the long-term renewable resources
6        procurement plan and approved by the Commission, 20
7        percent of the renewable energy credit purchase price
8        shall be paid by the contracting utilities at the time
9        that the facility producing the renewable energy
10        credits is interconnected at the distribution system
11        level of the utility and energized. The remaining
12        portion shall be paid ratably over the subsequent
13        4-year period. The electric utility shall receive and
14        retire all renewable energy credits generated by the
15        project for the first 15 years of operation.
16            (iv) Each contract shall include provisions to
17        ensure the delivery of the renewable energy credits for
18        the full term of the contract.
19            (v) The utility shall be the counterparty to the
20        contracts executed under this subparagraph (L) that
21        are approved by the Commission under the process
22        described in Section 16-111.5 of the Public Utilities
23        Act. No contract shall be executed for an amount that
24        is less than one renewable energy credit per year.
25            (vi) If, at any time, approved applications for the
26        Adjustable Block program exceed funds collected by the

 

 

09900SB2814ham002- 92 -LRB099 19990 RJF 51572 a

1        electric utility or would cause the Agency to exceed
2        the limitation described in subparagraph (E) of this
3        paragraph (1) on the amount of renewable energy
4        resources that may be procured, then the Agency shall
5        consider future uncommitted funds to be reserved for
6        these contracts on a first-come, first-served basis,
7        with the delivery of renewable energy credits required
8        beginning at the time that the reserved funds become
9        available.
10            (vii) Nothing in this Section shall require the
11        utility to advance any payment or pay any amounts that
12        exceed the actual amount of revenues collected by the
13        utility under paragraph (6) of this subsection (c) and
14        subsection (k) of Section 16-108 of the Public
15        Utilities Act, and contracts executed under this
16        Section shall expressly incorporate this limitation.
17        (M) The Agency shall be authorized to retain one or
18    more experts or expert consulting firms to develop,
19    administer, implement, operate, and evaluate the
20    Adjustable Block program described in subparagraph (K) of
21    this paragraph (1), and the Agency shall retain the
22    consultant or consultants in the same manner, to the extent
23    practicable, as the Agency retains others to administer
24    provisions of this Act, including, but not limited to, the
25    procurement administrator. The selection of experts and
26    expert consulting firms and the procurement process

 

 

09900SB2814ham002- 93 -LRB099 19990 RJF 51572 a

1    described in this subparagraph (M) are exempt from the
2    requirements of Section 20-10 of the Illinois Procurement
3    Code, under Section 20-10 of that Code. The Agency shall
4    strive to minimize administrative expenses in the
5    implementation of the Adjustable Block program.
6        The Agency and its consultant or consultants shall
7    monitor block activity, share program activity with
8    stakeholders and conduct regularly scheduled meetings to
9    discuss program activity and market conditions. If
10    necessary, the Agency may make prospective administrative
11    adjustments to the Adjustable Block program design, such as
12    redistributing available funds or making adjustments to
13    purchase prices as necessary to achieve the goals of this
14    subsection (c). Program modifications to any price,
15    capacity block, or other program element that do not
16    deviate from the Commission's approved value by more than
17    25% shall take effect immediately and are not subject to
18    Commission review and approval. Program modifications to
19    any price, capacity block, or other program element that
20    deviate more than 25% from the Commission's approved value
21    must be approved by the Commission as a long-term plan
22    amendment under Section 16-111.5 of the Public Utilities
23    Act. The Agency shall consider stakeholder feedback when
24    making adjustments to the Adjustable Block design and shall
25    notify stakeholders in advance of any planned changes.
26        (N) The long-term renewable resources procurement plan

 

 

09900SB2814ham002- 94 -LRB099 19990 RJF 51572 a

1    required by this subsection (c) shall include a community
2    renewable generation program. The Agency shall establish
3    the terms, conditions, and program requirements for
4    community renewable generation projects with a goal to
5    expand renewable energy generating facility access to a
6    broader group of energy consumers, including residential
7    and small commercial customers and those who cannot install
8    renewable energy on their own properties. Any plan approved
9    by the Commission shall allow subscriptions to community
10    renewable generation projects to be portable and
11    transferable. For purposes of this subparagraph (N),
12    "portable" means that subscriptions may be retained by the
13    subscriber even if the subscriber relocates or changes its
14    address within the same utility service territory; and
15    "transferable" means that a subscriber may assign or sell
16    subscriptions to another person within the same utility
17    service territory.
18        Electric utilities shall provide a monetary credit to a
19    subscriber's subsequent bill for service for the
20    proportional output of a community renewable generation
21    project attributable to that subscriber as specified in
22    Section 16-107.5 or Section 16-107.6 of the Public
23    Utilities Act, as applicable.
24        The Agency shall purchase renewable energy credits
25    from subscribed shares of photovoltaic community renewable
26    generation projects through the Adjustable Block program

 

 

09900SB2814ham002- 95 -LRB099 19990 RJF 51572 a

1    described in subparagraph (K) of this paragraph (1) or
2    through the Illinois Solar for All Program described in
3    Section 1-56 of this Act. The electric utility shall
4    purchase any unsubscribed energy from community renewable
5    generation projects that are Qualifying Facilities ("QF")
6    under the electric utility's tariff for purchasing the
7    output from QFs under Public Utilities Regulatory Policies
8    Act of 1978.
9        The owners of and any subscribers to a community
10    renewable generation project shall not be considered
11    public utilities or alternative retail electricity
12    suppliers under the Public Utilities Act solely as a result
13    of their interest in or subscription to a community
14    renewable generation project and shall not be required to
15    become an alternative retail electric supplier by
16    participating in a community renewable generation project
17    with a public utility.
18        (O)For the delivery year beginning June 1, 2018, the
19    long-term renewable resources procurement plan required by
20    this subsection (c) shall provide for the Agency to procure
21    contracts to continue offering the Illinois Solar for All
22    Program described in subsection (b) of Section 1-56 of this
23    Act, and the contracts approved by the Commission shall be
24    executed by the utilities that are subject to this
25    subsection (c). The long-term renewable resources
26    procurement plan shall allocate 10% of the funds available

 

 

09900SB2814ham002- 96 -LRB099 19990 RJF 51572 a

1    under the plan for the applicable delivery year, or
2    $20,000,000 per delivery year, whichever is greater, to
3    fund the programs, and the plan shall determine the amount
4    of funding to be apportioned to the programs identified in
5    subsection (b) of Section 1-56 of this Act. In making the
6    determinations required under this subparagraph (O), the
7    Commission shall consider the experience and performance
8    under the programs and any evaluation reports. The
9    Commission shall also provide for an independent
10    evaluation of those programs on a periodic basis that are
11    funded under this subparagraph (O). The procurement plans
12    shall include cost-effective renewable energy resources. A
13    minimum percentage of each utility's total supply to serve
14    the load of eligible retail customers, as defined in
15    Section 16-111.5(a) of the Public Utilities Act, procured
16    for each of the following years shall be generated from
17    cost-effective renewable energy resources: at least 2% by
18    June 1, 2008; at least 4% by June 1, 2009; at least 5% by
19    June 1, 2010; at least 6% by June 1, 2011; at least 7% by
20    June 1, 2012; at least 8% by June 1, 2013; at least 9% by
21    June 1, 2014; at least 10% by June 1, 2015; and increasing
22    by at least 1.5% each year thereafter to at least 25% by
23    June 1, 2025. To the extent that it is available, at least
24    75% of the renewable energy resources used to meet these
25    standards shall come from wind generation and, beginning on
26    June 1, 2011, at least the following percentages of the

 

 

09900SB2814ham002- 97 -LRB099 19990 RJF 51572 a

1    renewable energy resources used to meet these standards
2    shall come from photovoltaics on the following schedule:
3    0.5% by June 1, 2012, 1.5% by June 1, 2013; 3% by June 1,
4    2014; and 6% by June 1, 2015 and thereafter. Of the
5    renewable energy resources procured pursuant to this
6    Section, at least the following percentages shall come from
7    distributed renewable energy generation devices: 0.5% by
8    June 1, 2013, 0.75% by June 1, 2014, and 1% by June 1, 2015
9    and thereafter. To the extent available, half of the
10    renewable energy resources procured from distributed
11    renewable energy generation shall come from devices of less
12    than 25 kilowatts in nameplate capacity. Renewable energy
13    resources procured from distributed generation devices may
14    also count towards the required percentages for wind and
15    solar photovoltaics. Procurement of renewable energy
16    resources from distributed renewable energy generation
17    devices shall be done on an annual basis through multi-year
18    contracts of no less than 5 years, and shall consist solely
19    of renewable energy credits.
20        The Agency shall create credit requirements for
21    suppliers of distributed renewable energy. In order to
22    minimize the administrative burden on contracting
23    entities, the Agency shall solicit the use of third-party
24    organizations to aggregate distributed renewable energy
25    into groups of no less than one megawatt in installed
26    capacity. These third-party organizations shall administer

 

 

09900SB2814ham002- 98 -LRB099 19990 RJF 51572 a

1    contracts with individual distributed renewable energy
2    generation device owners. An individual distributed
3    renewable energy generation device owner shall have the
4    ability to measure the output of his or her distributed
5    renewable energy generation device.
6        For purposes of this subsection (c), "cost-effective"
7    means that the costs of procuring renewable energy
8    resources do not cause the limit stated in paragraph (2) of
9    this subsection (c) to be exceeded and do not exceed
10    benchmarks based on market prices for renewable energy
11    resources in the region, which shall be developed by the
12    procurement administrator, in consultation with the
13    Commission staff, Agency staff, and the procurement
14    monitor and shall be subject to Commission review and
15    approval.
16        (2) (Blank). For purposes of this subsection (c), the
17    required procurement of cost-effective renewable energy
18    resources for a particular year shall be measured as a
19    percentage of the actual amount of electricity
20    (megawatt-hours) supplied by the electric utility to
21    eligible retail customers in the planning year ending
22    immediately prior to the procurement. For purposes of this
23    subsection (c), the amount paid per kilowatthour means the
24    total amount paid for electric service expressed on a per
25    kilowatthour basis. For purposes of this subsection (c),
26    the total amount paid for electric service includes without

 

 

09900SB2814ham002- 99 -LRB099 19990 RJF 51572 a

1    limitation amounts paid for supply, transmission,
2    distribution, surcharges, and add-on taxes.
3        Notwithstanding the requirements of this subsection
4    (c), the total of renewable energy resources procured
5    pursuant to the procurement plan for any single year shall
6    be reduced by an amount necessary to limit the annual
7    estimated average net increase due to the costs of these
8    resources included in the amounts paid by eligible retail
9    customers in connection with electric service to:
10            (A) in 2008, no more than 0.5% of the amount paid
11        per kilowatthour by those customers during the year
12        ending May 31, 2007;
13            (B) in 2009, the greater of an additional 0.5% of
14        the amount paid per kilowatthour by those customers
15        during the year ending May 31, 2008 or 1% of the amount
16        paid per kilowatthour by those customers during the
17        year ending May 31, 2007;
18            (C) in 2010, the greater of an additional 0.5% of
19        the amount paid per kilowatthour by those customers
20        during the year ending May 31, 2009 or 1.5% of the
21        amount paid per kilowatthour by those customers during
22        the year ending May 31, 2007;
23            (D) in 2011, the greater of an additional 0.5% of
24        the amount paid per kilowatthour by those customers
25        during the year ending May 31, 2010 or 2% of the amount
26        paid per kilowatthour by those customers during the

 

 

09900SB2814ham002- 100 -LRB099 19990 RJF 51572 a

1        year ending May 31, 2007; and
2            (E) thereafter, the amount of renewable energy
3        resources procured pursuant to the procurement plan
4        for any single year shall be reduced by an amount
5        necessary to limit the estimated average net increase
6        due to the cost of these resources included in the
7        amounts paid by eligible retail customers in
8        connection with electric service to no more than the
9        greater of 2.015% of the amount paid per kilowatthour
10        by those customers during the year ending May 31, 2007
11        or the incremental amount per kilowatthour paid for
12        these resources in 2011.
13            No later than June 30, 2011, the Commission shall
14        review the limitation on the amount of renewable energy
15        resources procured pursuant to this subsection (c) and
16        report to the General Assembly its findings as to
17        whether that limitation unduly constrains the
18        procurement of cost-effective renewable energy
19        resources.
20        (3) (Blank). Through June 1, 2011, renewable energy
21    resources shall be counted for the purpose of meeting the
22    renewable energy standards set forth in paragraph (1) of
23    this subsection (c) only if they are generated from
24    facilities located in the State, provided that
25    cost-effective renewable energy resources are available
26    from those facilities. If those cost-effective resources

 

 

09900SB2814ham002- 101 -LRB099 19990 RJF 51572 a

1    are not available in Illinois, they shall be procured in
2    states that adjoin Illinois and may be counted towards
3    compliance. If those cost-effective resources are not
4    available in Illinois or in states that adjoin Illinois,
5    they shall be purchased elsewhere and shall be counted
6    towards compliance. After June 1, 2011, cost-effective
7    renewable energy resources located in Illinois and in
8    states that adjoin Illinois may be counted towards
9    compliance with the standards set forth in paragraph (1) of
10    this subsection (c). If those cost-effective resources are
11    not available in Illinois or in states that adjoin
12    Illinois, they shall be purchased elsewhere and shall be
13    counted towards compliance.
14        (4) The electric utility shall retire all renewable
15    energy credits used to comply with the standard.
16        (5) Beginning with the 2010 delivery year and ending
17    June 1, 2017 year commencing June 1, 2010, an electric
18    utility subject to this subsection (c) shall apply the
19    lesser of the maximum alternative compliance payment rate
20    or the most recent estimated alternative compliance
21    payment rate for its service territory for the
22    corresponding compliance period, established pursuant to
23    subsection (d) of Section 16-115D of the Public Utilities
24    Act to its retail customers that take service pursuant to
25    the electric utility's hourly pricing tariff or tariffs.
26    The electric utility shall retain all amounts collected as

 

 

09900SB2814ham002- 102 -LRB099 19990 RJF 51572 a

1    a result of the application of the alternative compliance
2    payment rate or rates to such customers, and, beginning in
3    2011, the utility shall include in the information provided
4    under item (1) of subsection (d) of Section 16-111.5 of the
5    Public Utilities Act the amounts collected under the
6    alternative compliance payment rate or rates for the prior
7    year ending May 31. Notwithstanding any limitation on the
8    procurement of renewable energy resources imposed by item
9    (2) of this subsection (c), the Agency shall increase its
10    spending on the purchase of renewable energy resources to
11    be procured by the electric utility for the next plan year
12    by an amount equal to the amounts collected by the utility
13    under the alternative compliance payment rate or rates in
14    the prior year ending May 31.
15        (6) The electric utility shall be entitled to recover
16    all of its costs associated with the procurement of
17    renewable energy credits under plans approved under this
18    Section and Section 16-111.5 of the Public Utilities Act.
19    These costs shall include associated reasonable expenses
20    for implementing the procurement programs, including, but
21    not limited to, the costs of administering and evaluating
22    the Adjustable Block program, through an automatic
23    adjustment clause tariff in accordance with subsection (k)
24    of Section 16-108 of the Public Utilities Act.
25        (7) Renewable energy credits procured from new
26    photovoltaic projects or new distributed renewable energy

 

 

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1    generation devices under this Section after the effective
2    date of this amendatory Act of the 99th General Assembly
3    must be procured from devices installed by a qualified
4    person in compliance with the requirements of Section
5    16-128A of the Public Utilities Act and any rules or
6    regulations adopted thereunder.
7        In meeting the renewable energy requirements of this
8    subsection (c), to the extent feasible and consistent with
9    State and federal law, the renewable energy credit
10    procurements, Adjustable Block solar program, and
11    community renewable generation program shall provide
12    employment opportunities for all segments of the
13    population and workforce, including minority-owned and
14    female-owned business enterprises, and shall not,
15    consistent with State and federal law, discriminate based
16    on race or socioeconomic status.
17    (d) Clean coal portfolio standard.
18        (1) The procurement plans shall include electricity
19    generated using clean coal. Each utility shall enter into
20    one or more sourcing agreements with the initial clean coal
21    facility, as provided in paragraph (3) of this subsection
22    (d), covering electricity generated by the initial clean
23    coal facility representing at least 5% of each utility's
24    total supply to serve the load of eligible retail customers
25    in 2015 and each year thereafter, as described in paragraph
26    (3) of this subsection (d), subject to the limits specified

 

 

09900SB2814ham002- 104 -LRB099 19990 RJF 51572 a

1    in paragraph (2) of this subsection (d). It is the goal of
2    the State that by January 1, 2025, 25% of the electricity
3    used in the State shall be generated by cost-effective
4    clean coal facilities. For purposes of this subsection (d),
5    "cost-effective" means that the expenditures pursuant to
6    such sourcing agreements do not cause the limit stated in
7    paragraph (2) of this subsection (d) to be exceeded and do
8    not exceed cost-based benchmarks, which shall be developed
9    to assess all expenditures pursuant to such sourcing
10    agreements covering electricity generated by clean coal
11    facilities, other than the initial clean coal facility, by
12    the procurement administrator, in consultation with the
13    Commission staff, Agency staff, and the procurement
14    monitor and shall be subject to Commission review and
15    approval.
16        A utility party to a sourcing agreement shall
17    immediately retire any emission credits that it receives in
18    connection with the electricity covered by such agreement.
19        Utilities shall maintain adequate records documenting
20    the purchases under the sourcing agreement to comply with
21    this subsection (d) and shall file an accounting with the
22    load forecast that must be filed with the Agency by July 15
23    of each year, in accordance with subsection (d) of Section
24    16-111.5 of the Public Utilities Act.
25        A utility shall be deemed to have complied with the
26    clean coal portfolio standard specified in this subsection

 

 

09900SB2814ham002- 105 -LRB099 19990 RJF 51572 a

1    (d) if the utility enters into a sourcing agreement as
2    required by this subsection (d).
3        (2) For purposes of this subsection (d), the required
4    execution of sourcing agreements with the initial clean
5    coal facility for a particular year shall be measured as a
6    percentage of the actual amount of electricity
7    (megawatt-hours) supplied by the electric utility to
8    eligible retail customers in the planning year ending
9    immediately prior to the agreement's execution. For
10    purposes of this subsection (d), the amount paid per
11    kilowatthour means the total amount paid for electric
12    service expressed on a per kilowatthour basis. For purposes
13    of this subsection (d), the total amount paid for electric
14    service includes without limitation amounts paid for
15    supply, transmission, distribution, surcharges and add-on
16    taxes.
17        Notwithstanding the requirements of this subsection
18    (d), the total amount paid under sourcing agreements with
19    clean coal facilities pursuant to the procurement plan for
20    any given year shall be reduced by an amount necessary to
21    limit the annual estimated average net increase due to the
22    costs of these resources included in the amounts paid by
23    eligible retail customers in connection with electric
24    service to:
25            (A) in 2010, no more than 0.5% of the amount paid
26        per kilowatthour by those customers during the year

 

 

09900SB2814ham002- 106 -LRB099 19990 RJF 51572 a

1        ending May 31, 2009;
2            (B) in 2011, the greater of an additional 0.5% of
3        the amount paid per kilowatthour by those customers
4        during the year ending May 31, 2010 or 1% of the amount
5        paid per kilowatthour by those customers during the
6        year ending May 31, 2009;
7            (C) in 2012, the greater of an additional 0.5% of
8        the amount paid per kilowatthour by those customers
9        during the year ending May 31, 2011 or 1.5% of the
10        amount paid per kilowatthour by those customers during
11        the year ending May 31, 2009;
12            (D) in 2013, the greater of an additional 0.5% of
13        the amount paid per kilowatthour by those customers
14        during the year ending May 31, 2012 or 2% of the amount
15        paid per kilowatthour by those customers during the
16        year ending May 31, 2009; and
17            (E) thereafter, the total amount paid under
18        sourcing agreements with clean coal facilities
19        pursuant to the procurement plan for any single year
20        shall be reduced by an amount necessary to limit the
21        estimated average net increase due to the cost of these
22        resources included in the amounts paid by eligible
23        retail customers in connection with electric service
24        to no more than the greater of (i) 2.015% of the amount
25        paid per kilowatthour by those customers during the
26        year ending May 31, 2009 or (ii) the incremental amount

 

 

09900SB2814ham002- 107 -LRB099 19990 RJF 51572 a

1        per kilowatthour paid for these resources in 2013.
2        These requirements may be altered only as provided by
3        statute.
4        No later than June 30, 2015, the Commission shall
5    review the limitation on the total amount paid under
6    sourcing agreements, if any, with clean coal facilities
7    pursuant to this subsection (d) and report to the General
8    Assembly its findings as to whether that limitation unduly
9    constrains the amount of electricity generated by
10    cost-effective clean coal facilities that is covered by
11    sourcing agreements.
12        (3) Initial clean coal facility. In order to promote
13    development of clean coal facilities in Illinois, each
14    electric utility subject to this Section shall execute a
15    sourcing agreement to source electricity from a proposed
16    clean coal facility in Illinois (the "initial clean coal
17    facility") that will have a nameplate capacity of at least
18    500 MW when commercial operation commences, that has a
19    final Clean Air Act permit on the effective date of this
20    amendatory Act of the 95th General Assembly, and that will
21    meet the definition of clean coal facility in Section 1-10
22    of this Act when commercial operation commences. The
23    sourcing agreements with this initial clean coal facility
24    shall be subject to both approval of the initial clean coal
25    facility by the General Assembly and satisfaction of the
26    requirements of paragraph (4) of this subsection (d) and

 

 

09900SB2814ham002- 108 -LRB099 19990 RJF 51572 a

1    shall be executed within 90 days after any such approval by
2    the General Assembly. The Agency and the Commission shall
3    have authority to inspect all books and records associated
4    with the initial clean coal facility during the term of
5    such a sourcing agreement. A utility's sourcing agreement
6    for electricity produced by the initial clean coal facility
7    shall include:
8            (A) a formula contractual price (the "contract
9        price") approved pursuant to paragraph (4) of this
10        subsection (d), which shall:
11                (i) be determined using a cost of service
12            methodology employing either a level or deferred
13            capital recovery component, based on a capital
14            structure consisting of 45% equity and 55% debt,
15            and a return on equity as may be approved by the
16            Federal Energy Regulatory Commission, which in any
17            case may not exceed the lower of 11.5% or the rate
18            of return approved by the General Assembly
19            pursuant to paragraph (4) of this subsection (d);
20            and
21                (ii) provide that all miscellaneous net
22            revenue, including but not limited to net revenue
23            from the sale of emission allowances, if any,
24            substitute natural gas, if any, grants or other
25            support provided by the State of Illinois or the
26            United States Government, firm transmission

 

 

09900SB2814ham002- 109 -LRB099 19990 RJF 51572 a

1            rights, if any, by-products produced by the
2            facility, energy or capacity derived from the
3            facility and not covered by a sourcing agreement
4            pursuant to paragraph (3) of this subsection (d) or
5            item (5) of subsection (d) of Section 16-115 of the
6            Public Utilities Act, whether generated from the
7            synthesis gas derived from coal, from SNG, or from
8            natural gas, shall be credited against the revenue
9            requirement for this initial clean coal facility;
10            (B) power purchase provisions, which shall:
11                (i) provide that the utility party to such
12            sourcing agreement shall pay the contract price
13            for electricity delivered under such sourcing
14            agreement;
15                (ii) require delivery of electricity to the
16            regional transmission organization market of the
17            utility that is party to such sourcing agreement;
18                (iii) require the utility party to such
19            sourcing agreement to buy from the initial clean
20            coal facility in each hour an amount of energy
21            equal to all clean coal energy made available from
22            the initial clean coal facility during such hour
23            times a fraction, the numerator of which is such
24            utility's retail market sales of electricity
25            (expressed in kilowatthours sold) in the State
26            during the prior calendar month and the

 

 

09900SB2814ham002- 110 -LRB099 19990 RJF 51572 a

1            denominator of which is the total retail market
2            sales of electricity (expressed in kilowatthours
3            sold) in the State by utilities during such prior
4            month and the sales of electricity (expressed in
5            kilowatthours sold) in the State by alternative
6            retail electric suppliers during such prior month
7            that are subject to the requirements of this
8            subsection (d) and paragraph (5) of subsection (d)
9            of Section 16-115 of the Public Utilities Act,
10            provided that the amount purchased by the utility
11            in any year will be limited by paragraph (2) of
12            this subsection (d); and
13                (iv) be considered pre-existing contracts in
14            such utility's procurement plans for eligible
15            retail customers;
16            (C) contract for differences provisions, which
17        shall:
18                (i) require the utility party to such sourcing
19            agreement to contract with the initial clean coal
20            facility in each hour with respect to an amount of
21            energy equal to all clean coal energy made
22            available from the initial clean coal facility
23            during such hour times a fraction, the numerator of
24            which is such utility's retail market sales of
25            electricity (expressed in kilowatthours sold) in
26            the utility's service territory in the State

 

 

09900SB2814ham002- 111 -LRB099 19990 RJF 51572 a

1            during the prior calendar month and the
2            denominator of which is the total retail market
3            sales of electricity (expressed in kilowatthours
4            sold) in the State by utilities during such prior
5            month and the sales of electricity (expressed in
6            kilowatthours sold) in the State by alternative
7            retail electric suppliers during such prior month
8            that are subject to the requirements of this
9            subsection (d) and paragraph (5) of subsection (d)
10            of Section 16-115 of the Public Utilities Act,
11            provided that the amount paid by the utility in any
12            year will be limited by paragraph (2) of this
13            subsection (d);
14                (ii) provide that the utility's payment
15            obligation in respect of the quantity of
16            electricity determined pursuant to the preceding
17            clause (i) shall be limited to an amount equal to
18            (1) the difference between the contract price
19            determined pursuant to subparagraph (A) of
20            paragraph (3) of this subsection (d) and the
21            day-ahead price for electricity delivered to the
22            regional transmission organization market of the
23            utility that is party to such sourcing agreement
24            (or any successor delivery point at which such
25            utility's supply obligations are financially
26            settled on an hourly basis) (the "reference

 

 

09900SB2814ham002- 112 -LRB099 19990 RJF 51572 a

1            price") on the day preceding the day on which the
2            electricity is delivered to the initial clean coal
3            facility busbar, multiplied by (2) the quantity of
4            electricity determined pursuant to the preceding
5            clause (i); and
6                (iii) not require the utility to take physical
7            delivery of the electricity produced by the
8            facility;
9            (D) general provisions, which shall:
10                (i) specify a term of no more than 30 years,
11            commencing on the commercial operation date of the
12            facility;
13                (ii) provide that utilities shall maintain
14            adequate records documenting purchases under the
15            sourcing agreements entered into to comply with
16            this subsection (d) and shall file an accounting
17            with the load forecast that must be filed with the
18            Agency by July 15 of each year, in accordance with
19            subsection (d) of Section 16-111.5 of the Public
20            Utilities Act;
21                (iii) provide that all costs associated with
22            the initial clean coal facility will be
23            periodically reported to the Federal Energy
24            Regulatory Commission and to purchasers in
25            accordance with applicable laws governing
26            cost-based wholesale power contracts;

 

 

09900SB2814ham002- 113 -LRB099 19990 RJF 51572 a

1                (iv) permit the Illinois Power Agency to
2            assume ownership of the initial clean coal
3            facility, without monetary consideration and
4            otherwise on reasonable terms acceptable to the
5            Agency, if the Agency so requests no less than 3
6            years prior to the end of the stated contract term;
7                (v) require the owner of the initial clean coal
8            facility to provide documentation to the
9            Commission each year, starting in the facility's
10            first year of commercial operation, accurately
11            reporting the quantity of carbon emissions from
12            the facility that have been captured and
13            sequestered and report any quantities of carbon
14            released from the site or sites at which carbon
15            emissions were sequestered in prior years, based
16            on continuous monitoring of such sites. If, in any
17            year after the first year of commercial operation,
18            the owner of the facility fails to demonstrate that
19            the initial clean coal facility captured and
20            sequestered at least 50% of the total carbon
21            emissions that the facility would otherwise emit
22            or that sequestration of emissions from prior
23            years has failed, resulting in the release of
24            carbon dioxide into the atmosphere, the owner of
25            the facility must offset excess emissions. Any
26            such carbon offsets must be permanent, additional,

 

 

09900SB2814ham002- 114 -LRB099 19990 RJF 51572 a

1            verifiable, real, located within the State of
2            Illinois, and legally and practicably enforceable.
3            The cost of such offsets for the facility that are
4            not recoverable shall not exceed $15 million in any
5            given year. No costs of any such purchases of
6            carbon offsets may be recovered from a utility or
7            its customers. All carbon offsets purchased for
8            this purpose and any carbon emission credits
9            associated with sequestration of carbon from the
10            facility must be permanently retired. The initial
11            clean coal facility shall not forfeit its
12            designation as a clean coal facility if the
13            facility fails to fully comply with the applicable
14            carbon sequestration requirements in any given
15            year, provided the requisite offsets are
16            purchased. However, the Attorney General, on
17            behalf of the People of the State of Illinois, may
18            specifically enforce the facility's sequestration
19            requirement and the other terms of this contract
20            provision. Compliance with the sequestration
21            requirements and offset purchase requirements
22            specified in paragraph (3) of this subsection (d)
23            shall be reviewed annually by an independent
24            expert retained by the owner of the initial clean
25            coal facility, with the advance written approval
26            of the Attorney General. The Commission may, in the

 

 

09900SB2814ham002- 115 -LRB099 19990 RJF 51572 a

1            course of the review specified in item (vii),
2            reduce the allowable return on equity for the
3            facility if the facility wilfully fails to comply
4            with the carbon capture and sequestration
5            requirements set forth in this item (v);
6                (vi) include limits on, and accordingly
7            provide for modification of, the amount the
8            utility is required to source under the sourcing
9            agreement consistent with paragraph (2) of this
10            subsection (d);
11                (vii) require Commission review: (1) to
12            determine the justness, reasonableness, and
13            prudence of the inputs to the formula referenced in
14            subparagraphs (A)(i) through (A)(iii) of paragraph
15            (3) of this subsection (d), prior to an adjustment
16            in those inputs including, without limitation, the
17            capital structure and return on equity, fuel
18            costs, and other operations and maintenance costs
19            and (2) to approve the costs to be passed through
20            to customers under the sourcing agreement by which
21            the utility satisfies its statutory obligations.
22            Commission review shall occur no less than every 3
23            years, regardless of whether any adjustments have
24            been proposed, and shall be completed within 9
25            months;
26                (viii) limit the utility's obligation to such

 

 

09900SB2814ham002- 116 -LRB099 19990 RJF 51572 a

1            amount as the utility is allowed to recover through
2            tariffs filed with the Commission, provided that
3            neither the clean coal facility nor the utility
4            waives any right to assert federal pre-emption or
5            any other argument in response to a purported
6            disallowance of recovery costs;
7                (ix) limit the utility's or alternative retail
8            electric supplier's obligation to incur any
9            liability until such time as the facility is in
10            commercial operation and generating power and
11            energy and such power and energy is being delivered
12            to the facility busbar;
13                (x) provide that the owner or owners of the
14            initial clean coal facility, which is the
15            counterparty to such sourcing agreement, shall
16            have the right from time to time to elect whether
17            the obligations of the utility party thereto shall
18            be governed by the power purchase provisions or the
19            contract for differences provisions;
20                (xi) append documentation showing that the
21            formula rate and contract, insofar as they relate
22            to the power purchase provisions, have been
23            approved by the Federal Energy Regulatory
24            Commission pursuant to Section 205 of the Federal
25            Power Act;
26                (xii) provide that any changes to the terms of

 

 

09900SB2814ham002- 117 -LRB099 19990 RJF 51572 a

1            the contract, insofar as such changes relate to the
2            power purchase provisions, are subject to review
3            under the public interest standard applied by the
4            Federal Energy Regulatory Commission pursuant to
5            Sections 205 and 206 of the Federal Power Act; and
6                (xiii) conform with customary lender
7            requirements in power purchase agreements used as
8            the basis for financing non-utility generators.
9        (4) Effective date of sourcing agreements with the
10    initial clean coal facility.
11        Any proposed sourcing agreement with the initial clean
12    coal facility shall not become effective unless the
13    following reports are prepared and submitted and
14    authorizations and approvals obtained:
15            (i) Facility cost report. The owner of the initial
16        clean coal facility shall submit to the Commission, the
17        Agency, and the General Assembly a front-end
18        engineering and design study, a facility cost report,
19        method of financing (including but not limited to
20        structure and associated costs), and an operating and
21        maintenance cost quote for the facility (collectively
22        "facility cost report"), which shall be prepared in
23        accordance with the requirements of this paragraph (4)
24        of subsection (d) of this Section, and shall provide
25        the Commission and the Agency access to the work
26        papers, relied upon documents, and any other backup

 

 

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1        documentation related to the facility cost report.
2            (ii) Commission report. Within 6 months following
3        receipt of the facility cost report, the Commission, in
4        consultation with the Agency, shall submit a report to
5        the General Assembly setting forth its analysis of the
6        facility cost report. Such report shall include, but
7        not be limited to, a comparison of the costs associated
8        with electricity generated by the initial clean coal
9        facility to the costs associated with electricity
10        generated by other types of generation facilities, an
11        analysis of the rate impacts on residential and small
12        business customers over the life of the sourcing
13        agreements, and an analysis of the likelihood that the
14        initial clean coal facility will commence commercial
15        operation by and be delivering power to the facility's
16        busbar by 2016. To assist in the preparation of its
17        report, the Commission, in consultation with the
18        Agency, may hire one or more experts or consultants,
19        the costs of which shall be paid for by the owner of
20        the initial clean coal facility. The Commission and
21        Agency may begin the process of selecting such experts
22        or consultants prior to receipt of the facility cost
23        report.
24            (iii) General Assembly approval. The proposed
25        sourcing agreements shall not take effect unless,
26        based on the facility cost report and the Commission's

 

 

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1        report, the General Assembly enacts authorizing
2        legislation approving (A) the projected price, stated
3        in cents per kilowatthour, to be charged for
4        electricity generated by the initial clean coal
5        facility, (B) the projected impact on residential and
6        small business customers' bills over the life of the
7        sourcing agreements, and (C) the maximum allowable
8        return on equity for the project; and
9            (iv) Commission review. If the General Assembly
10        enacts authorizing legislation pursuant to
11        subparagraph (iii) approving a sourcing agreement, the
12        Commission shall, within 90 days of such enactment,
13        complete a review of such sourcing agreement. During
14        such time period, the Commission shall implement any
15        directive of the General Assembly, resolve any
16        disputes between the parties to the sourcing agreement
17        concerning the terms of such agreement, approve the
18        form of such agreement, and issue an order finding that
19        the sourcing agreement is prudent and reasonable.
20        The facility cost report shall be prepared as follows:
21            (A) The facility cost report shall be prepared by
22        duly licensed engineering and construction firms
23        detailing the estimated capital costs payable to one or
24        more contractors or suppliers for the engineering,
25        procurement and construction of the components
26        comprising the initial clean coal facility and the

 

 

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1        estimated costs of operation and maintenance of the
2        facility. The facility cost report shall include:
3                (i) an estimate of the capital cost of the core
4            plant based on one or more front end engineering
5            and design studies for the gasification island and
6            related facilities. The core plant shall include
7            all civil, structural, mechanical, electrical,
8            control, and safety systems.
9                (ii) an estimate of the capital cost of the
10            balance of the plant, including any capital costs
11            associated with sequestration of carbon dioxide
12            emissions and all interconnects and interfaces
13            required to operate the facility, such as
14            transmission of electricity, construction or
15            backfeed power supply, pipelines to transport
16            substitute natural gas or carbon dioxide, potable
17            water supply, natural gas supply, water supply,
18            water discharge, landfill, access roads, and coal
19            delivery.
20            The quoted construction costs shall be expressed
21        in nominal dollars as of the date that the quote is
22        prepared and shall include capitalized financing costs
23        during construction, taxes, insurance, and other
24        owner's costs, and an assumed escalation in materials
25        and labor beyond the date as of which the construction
26        cost quote is expressed.

 

 

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1            (B) The front end engineering and design study for
2        the gasification island and the cost study for the
3        balance of plant shall include sufficient design work
4        to permit quantification of major categories of
5        materials, commodities and labor hours, and receipt of
6        quotes from vendors of major equipment required to
7        construct and operate the clean coal facility.
8            (C) The facility cost report shall also include an
9        operating and maintenance cost quote that will provide
10        the estimated cost of delivered fuel, personnel,
11        maintenance contracts, chemicals, catalysts,
12        consumables, spares, and other fixed and variable
13        operations and maintenance costs. The delivered fuel
14        cost estimate will be provided by a recognized third
15        party expert or experts in the fuel and transportation
16        industries. The balance of the operating and
17        maintenance cost quote, excluding delivered fuel
18        costs, will be developed based on the inputs provided
19        by duly licensed engineering and construction firms
20        performing the construction cost quote, potential
21        vendors under long-term service agreements and plant
22        operating agreements, or recognized third party plant
23        operator or operators.
24            The operating and maintenance cost quote
25        (including the cost of the front end engineering and
26        design study) shall be expressed in nominal dollars as

 

 

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1        of the date that the quote is prepared and shall
2        include taxes, insurance, and other owner's costs, and
3        an assumed escalation in materials and labor beyond the
4        date as of which the operating and maintenance cost
5        quote is expressed.
6            (D) The facility cost report shall also include an
7        analysis of the initial clean coal facility's ability
8        to deliver power and energy into the applicable
9        regional transmission organization markets and an
10        analysis of the expected capacity factor for the
11        initial clean coal facility.
12            (E) Amounts paid to third parties unrelated to the
13        owner or owners of the initial clean coal facility to
14        prepare the core plant construction cost quote,
15        including the front end engineering and design study,
16        and the operating and maintenance cost quote will be
17        reimbursed through Coal Development Bonds.
18        (5) Re-powering and retrofitting coal-fired power
19    plants previously owned by Illinois utilities to qualify as
20    clean coal facilities. During the 2009 procurement
21    planning process and thereafter, the Agency and the
22    Commission shall consider sourcing agreements covering
23    electricity generated by power plants that were previously
24    owned by Illinois utilities and that have been or will be
25    converted into clean coal facilities, as defined by Section
26    1-10 of this Act. Pursuant to such procurement planning

 

 

09900SB2814ham002- 123 -LRB099 19990 RJF 51572 a

1    process, the owners of such facilities may propose to the
2    Agency sourcing agreements with utilities and alternative
3    retail electric suppliers required to comply with
4    subsection (d) of this Section and item (5) of subsection
5    (d) of Section 16-115 of the Public Utilities Act, covering
6    electricity generated by such facilities. In the case of
7    sourcing agreements that are power purchase agreements,
8    the contract price for electricity sales shall be
9    established on a cost of service basis. In the case of
10    sourcing agreements that are contracts for differences,
11    the contract price from which the reference price is
12    subtracted shall be established on a cost of service basis.
13    The Agency and the Commission may approve any such utility
14    sourcing agreements that do not exceed cost-based
15    benchmarks developed by the procurement administrator, in
16    consultation with the Commission staff, Agency staff and
17    the procurement monitor, subject to Commission review and
18    approval. The Commission shall have authority to inspect
19    all books and records associated with these clean coal
20    facilities during the term of any such contract.
21        (6) Costs incurred under this subsection (d) or
22    pursuant to a contract entered into under this subsection
23    (d) shall be deemed prudently incurred and reasonable in
24    amount and the electric utility shall be entitled to full
25    cost recovery pursuant to the tariffs filed with the
26    Commission.

 

 

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1    (d-5) Zero emission standard.
2        (1) Beginning with the delivery year commencing on June
3    1, 2017, the Agency shall, for electric utilities that
4    serve at least 100,000 retail customers in this State,
5    procure contracts with zero emission facilities that are
6    reasonably capable of generating cost-effective zero
7    emission credits in an amount approximately equal to 16.75%
8    of the actual amount of electricity delivered by each
9    electric utility to retail customers in the State during
10    calendar year 2015. For an electric utility serving fewer
11    than 100,000 retail customers in this State that requested,
12    under Section 16-111.5 of the Public Utilities Act, that
13    the Agency procure power and energy for all or a portion of
14    the utility's Illinois load for the delivery year
15    commencing June 1, 2016, the Agency shall procure contracts
16    with zero emission facilities that are reasonably capable
17    of generating cost-effective zero emission credits in an
18    amount approximately equal to 16.75% of the portion of
19    power and energy to be procured by the Agency for the
20    utility. The duration of the contracts procured under this
21    subsection (d-5) shall be for the remaining useful life of
22    the zero emission facility. The quantity of zero emission
23    credits to be procured under the contracts shall be all of
24    the zero emission credits generated by the zero emission
25    facility in each delivery year; however, if the zero
26    emission facility is owned by more than one entity, then

 

 

09900SB2814ham002- 125 -LRB099 19990 RJF 51572 a

1    the quantity of zero emission credits to be procured under
2    the contracts shall be the amount of zero emission credits
3    that are generated from the portion of the zero emission
4    facility that is owned by the winning supplier.
5        The 16.75% value identified in this paragraph (1) is
6    the average of the percentage targets in subparagraph (B)
7    of paragraph (1) of subsection (c) of Section 1-75 of this
8    Act for the 6 delivery years beginning June 1, 2017.
9        The procurement process shall be subject to the
10    following provisions:
11            (A) Those zero emission facilities that intend to
12        participate in the procurement shall submit to the
13        Agency the following eligibility information for each
14        zero emission facility on or before the date
15        established by the Agency:
16                (i) the in-service date and remaining useful
17            life of the zero emission facility;
18                (ii) the amount of power generated annually
19            for each of the years 2005 through 2015, and the
20            projected zero emission credits to be generated
21            over the remaining useful life of the zero emission
22            facility, which shall be used to determine the
23            capability of each facility;
24                (iii) the annual zero emission facility cost
25            projections, expressed on a per megawatthour
26            basis, over the next 6 delivery years, which shall

 

 

09900SB2814ham002- 126 -LRB099 19990 RJF 51572 a

1            include the following: operation and maintenance
2            expenses; fully allocated overhead costs, which
3            shall be allocated using the methodology developed
4            by the Institute for Nuclear Power Operations;
5            fuel expenditures; non-fuel capital expenditures;
6            spent fuel expenditures; a return on working
7            capital; the cost of operational and market risks
8            that could be avoided by ceasing operation; and any
9            other costs necessary for continued operations,
10            provided that "necessary" means, for purposes of
11            this item (iii), that the costs could reasonably be
12            avoided only by ceasing operations of the zero
13            emission facility; and
14                (iv) a commitment to continue operating, for
15            the duration of the contract or contracts executed
16            under the procurement held under this subsection
17            (d-5), the zero emission facility that produces
18            the zero emission credits to be procured in the
19            procurement.
20        The information described in item (iii) of this
21    subparagraph (A) may be submitted on a confidential basis
22    and shall be treated and maintained by the Agency, the
23    procurement administrator, and the Commission as
24    confidential and proprietary and exempt from disclosure
25    under subparagraphs (a) and (g) of paragraph (1) of Section
26    7 of the Freedom of Information Act.

 

 

09900SB2814ham002- 127 -LRB099 19990 RJF 51572 a

1            (B) The price for each zero emission credit
2        procured under this subsection (d-5) for each delivery
3        year shall be in an amount that equals the Social Cost
4        of Carbon, expressed on a price per megawatthour basis.
5        However, to ensure that the procurement remains
6        affordable to retail customers in this State if
7        electricity prices increase, the price in an
8        applicable delivery year shall be reduced below the
9        Social Cost of Carbon by the amount ("Price
10        Adjustment") by which the market price index for the
11        applicable delivery year exceeds the baseline market
12        price index for the consecutive 12-month period ending
13        May 31, 2016. If the Price Adjustment is greater than
14        or equal to the Social Cost of Carbon in an applicable
15        delivery year, then no payments shall be due in that
16        delivery year. The components of this calculation are
17        defined as follows:
18                (i) Social Cost of Carbon: The Social Cost of
19            Carbon is $16.50 per megawatthour, which is based
20            on the U.S. Interagency Working Group on Social
21            Cost of Carbon's price in the August 2016 Technical
22            Update using a 3% discount rate, adjusted for
23            inflation for each year of the program. Beginning
24            with the delivery year commencing June 1, 2023, the
25            price per megawatthour shall increase by $1 per
26            megawatthour, and continue to increase by an

 

 

09900SB2814ham002- 128 -LRB099 19990 RJF 51572 a

1            additional $1 per megawatthour each delivery year
2            thereafter.
3                (ii) Baseline market price index: The baseline
4            market price index for the consecutive 12-month
5            period ending May 31, 2016 is $31.40 per
6            megawatthour, which is based on the sum of (aa) the
7            average day-ahead energy price across all hours of
8            such 12-month period at the PJM Interconnection
9            LLC Northern Illinois Hub, (bb) 50% multiplied by
10            the Base Residual Auction, or its successor,
11            capacity price for the rest of the RTO zone group
12            determined by PJM Interconnection LLC, divided by
13            24 hours per day, and (cc) 50% multiplied by the
14            Planning Resource Auction, or its successor,
15            capacity price for Zone 4 determined by the
16            Midcontinent Independent System Operator, Inc.,
17            divided by 24 hours per day.
18                (iii) Market price index: The market price
19            index for a delivery year shall be the sum of
20            projected energy prices and projected capacity
21            prices determined as follows:
22                    (aa) Projected energy prices: the
23                projected energy prices for the applicable
24                delivery year shall be calculated once for the
25                year using the forward market price for the PJM
26                Interconnection, LLC Northern Illinois Hub.

 

 

09900SB2814ham002- 129 -LRB099 19990 RJF 51572 a

1                The forward market price shall be calculated as
2                follows: the energy forward prices for each
3                month of the applicable delivery year averaged
4                for each trade date during the calendar year
5                immediately preceding that delivery year to
6                produce a single energy forward price for the
7                delivery year. The forward market price
8                calculation shall use data published by the
9                Intercontinental Exchange, or its successor.
10                    (bb) Projected capacity prices:
11                        (I) For the delivery years commencing
12                    June 1, 2017, June 1, 2018, and June 1,
13                    2019, the projected capacity price shall
14                    be equal to the sum of (1) 50% multiplied
15                    by the Base Residual Auction, or its
16                    successor, price for the rest of the RTO
17                    zone group as determined by PJM
18                    Interconnection LLC, divided by 24 hours
19                    per day and, (2) 50% multiplied by either
20                    the Planning Resource Auction, or its
21                    successor, price for Local Resource Zone 4
22                    as determined by the Midcontinent
23                    Independent System Operator, Inc., or, if
24                    more than 80% of the Zone 4 load is subject
25                    to a fixed resource adequacy plan, then a
26                    price determined by the outcome of the

 

 

09900SB2814ham002- 130 -LRB099 19990 RJF 51572 a

1                    procurements held under subsection (k) of
2                    Section 16-111.5 of the Public Utilities
3                    Act, divided by 24 hours per day.
4                        (II) For the delivery year commencing
5                    June 1, 2020, and each year thereafter, the
6                    projected capacity price shall be equal to
7                    the sum of (1) 50% multiplied by the Base
8                    Residual Auction, or its successor, price
9                    for the ComEd zone as determined by PJM
10                    Interconnection LLC, divided by 24 hours
11                    per day, and (2) 50% multiplied by either
12                    the Planning Resource Auction, or its
13                    successor, price for Local Resource Zone 4
14                    as determined by the Midcontinent
15                    Independent System Operator, Inc., or, if
16                    more than 80% of the Zone 4 load is subject
17                    to a fixed resource adequacy plan, then a
18                    price determined by the outcome of the
19                    procurements held under subsection (k) of
20                    Section 16-111.5 of the Public Utilities
21                    Act, divided by 24 hours per day.
22            For purposes of this subsection (d-5):
23                "Rest of the RTO" and "ComEd Zone" shall have
24            the meaning ascribed to them by PJM
25            Interconnection, LLC.
26                "RTO" means regional transmission

 

 

09900SB2814ham002- 131 -LRB099 19990 RJF 51572 a

1            organization.
2            (C) No later than 45 days after the effective date
3        of this amendatory Act of the 99th General Assembly,
4        the Agency shall publish its proposed zero emission
5        standard procurement plan. The plan shall be
6        consistent with the provisions of this paragraph (1)
7        and shall provide that winning bids shall be selected
8        based on public interest criteria that include, but are
9        not limited to, minimizing carbon dioxide emissions
10        that result from electricity consumed in Illinois and
11        minimizing sulfur dioxide, nitrogen oxide, and
12        particulate matter emissions that adversely affect the
13        citizens of this State. In particular, the selection of
14        winning bids shall take into account the incremental
15        environmental benefits resulting from the procurement,
16        such as any existing environmental benefits that are
17        preserved by the procurements held under this
18        amendatory Act of the 99th General Assembly and would
19        cease to exist if the procurements were not held,
20        including the preservation of zero emission
21        facilities. The plan shall also describe in detail how
22        each public interest factor shall be considered and
23        weighted in the bid selection process to ensure that
24        the public interest criteria are applied to the
25        procurement and given full effect.
26            For purposes of developing the plan, the Agency

 

 

09900SB2814ham002- 132 -LRB099 19990 RJF 51572 a

1        shall consider any reports issued by a State agency,
2        board, or commission under House Resolution 1146 of the
3        98th General Assembly and paragraph (4) of subsection
4        (d) of Section 1-75 of this Act, as well as publicly
5        available analyses and studies performed by or for
6        regional transmission organizations that serve the
7        State and their independent market monitors.
8            Upon publishing of the zero emission standard
9        procurement plan, copies of the plan shall be posted
10        and made publicly available on the Agency's website.
11        All interested parties shall have 10 days following the
12        date of posting to provide comment to the Agency on the
13        plan. All comments shall be posted to the Agency's
14        website. Following the end of the comment period, but
15        no more than 60 days later than the effective date of
16        this amendatory Act of the 99th General Assembly, the
17        Agency shall revise the plan as necessary based on the
18        comments received and file its zero emission standard
19        procurement plan with the Commission.
20            If the Commission determines that the plan will
21        result in the procurement of cost-effective zero
22        emission credits, then the Commission shall, after
23        notice and hearing, but no later than 45 days after the
24        Agency filed the plan, approve the plan or approve with
25        modification. For purposes of this subsection (d-5),
26        "cost effective" means the projected costs of

 

 

09900SB2814ham002- 133 -LRB099 19990 RJF 51572 a

1        procuring zero emission credits from zero emission
2        facilities do not cause the limit stated in paragraph
3        (2) of this subsection to be exceeded.
4            As part of the Commission's review and acceptance
5        or rejection of the procurement results, the
6        Commission shall identify, in its public notice of
7        successful bidders, how the winning bids satisfy the
8        public interest criteria described in this
9        subparagraph (C) of minimizing carbon dioxide
10        emissions that result from electricity consumed in
11        Illinois and minimizing sulfur dioxide, nitrogen
12        oxide, and particulate matter emissions that adversely
13        affect the citizens of this State. The Commission shall
14        also specifically address how the selection of winning
15        bids takes into account the incremental environmental
16        benefits resulting from the procurement, including any
17        existing environmental benefits that are preserved by
18        the procurements held under this amendatory Act of the
19        99th General Assembly and would have ceased to exist if
20        the procurements had not been held, such as the
21        preservation of zero emission facilities. In addition,
22        the Commission shall quantify the environmental
23        benefit of preserving such resources, including (i)
24        the value of avoided greenhouse gas emissions measured
25        as the product of the zero emission facilities' output
26        over the contract term multiplied by the U.S.

 

 

09900SB2814ham002- 134 -LRB099 19990 RJF 51572 a

1        Environmental Protection Agency eGrid subregion carbon
2        dioxide emission rate and the U.S. Interagency Working
3        Group on Social Cost of Carbon's price in the August
4        2016 Technical Update using a 3% discount rate,
5        adjusted for inflation for each delivery year; and (ii)
6        the costs of replacement with other zero carbon dioxide
7        resources, including wind and photovoltaic, based upon
8        the results of the procurements specified in
9        subparagraph (G) of paragraph (1) of subsection (c) of
10        Section 1-75 of this Act. Each utility shall enter into
11        binding contractual arrangements with the winning
12        suppliers.
13            Notwithstanding anything to the contrary and
14        regardless of whether a procurement event is conducted
15        under Section 16-111.5 of the Public Utilities Act, the
16        procurement described in this subsection (d-5),
17        including, but not limited to, the execution of all
18        contracts procured, shall be completed no later than
19        May 10, 2017. Based on the effective date of this
20        amendatory Act of the 99th General Assembly, the Agency
21        and Commission may, as appropriate, modify the various
22        dates and timelines under this subparagraph (C). The
23        procurement and plan approval processes required by
24        this subsection (d-5) shall be conducted in
25        conjunction with the procurement and plan approval
26        processes required by subsection (c) of this Section

 

 

09900SB2814ham002- 135 -LRB099 19990 RJF 51572 a

1        and Section 16-111.5 of the Public Utilities Act, to
2        the extent practicable. Notwithstanding whether a
3        procurement event is conducted under Section 16-111.5
4        of the Public Utilities Act, the Agency shall
5        immediately initiate a procurement process on the
6        effective date of this amendatory Act of the 99th
7        General Assembly.
8            (D) Following the procurement event described in
9        this paragraph (1) and consistent with subparagraph
10        (B) of this paragraph (1), the Agency shall calculate
11        the payments to be made under each contract for the
12        next delivery year based on the market price index for
13        that delivery year. The Agency shall publish the
14        payment calculations no later than May 25, 2017 and
15        every May 25 thereafter.
16            (E) The contracts executed under this subsection
17        (d-5) shall provide that the Commission or zero
18        emission facility may terminate a contract or
19        contracts to be effective on June 1 of a given delivery
20        year, provided that notice of such termination must be
21        made at least 4 years prior to the effective date of
22        such termination and the earliest date on which a
23        contract termination may take effect under this
24        subparagraph (E) is the earlier of June 1, 2023 or 2
25        years after the State has adopted and implemented a
26        plan under the provisions of Section 111(d) of the

 

 

09900SB2814ham002- 136 -LRB099 19990 RJF 51572 a

1        federal Clean Air Act, 42 U.S. C. 7411(d), as amended.
2            (F) Notwithstanding the requirements of this
3        subsection (d-5), the contracts executed under this
4        subsection (d-5) shall provide that the zero emission
5        facility may, as applicable, suspend or terminate
6        performance under the contracts in the following
7        instances:
8                (i) A zero emission facility shall be excused
9            from its performance under the contract for any
10            cause beyond the control of the resource,
11            including, but not restricted to, acts of God,
12            flood, drought, earthquake, storm, fire,
13            lightning, epidemic, war, riot, civil disturbance
14            or disobedience, labor dispute, labor or material
15            shortage, sabotage, acts of public enemy,
16            explosions, orders, regulations or restrictions
17            imposed by governmental, military, or lawfully
18            established civilian authorities, which, in any of
19            the foregoing cases, by exercise of commercially
20            reasonable efforts the zero emission facility
21            could not reasonably have been expected to avoid,
22            and which, by the exercise of commercially
23            reasonable efforts, it has been unable to
24            overcome. In such event, the zero emission
25            facility shall be excused from performance for the
26            duration of the event, including, but not limited

 

 

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1            to, delivery of zero emission credits, and no
2            payment shall be due to the zero emission facility
3            during the duration of the event.
4                (ii) A zero emission facility shall be
5            permitted to terminate the contract if legislation
6            is enacted into law by the General Assembly that
7            imposes or authorizes a new tax, special
8            assessment, or fee on the generation of
9            electricity, the ownership or leasehold of a
10            generating unit, or the privilege or occupation of
11            such generation, ownership, or leasehold of
12            generation units by a zero emission facility.
13            However, the provisions of this item (ii) do not
14            apply to any generally applicable tax, special
15            assessment or fee, or requirements imposed by
16            federal law.
17                (iii) A zero emission facility shall be
18            permitted to terminate the contract in the event
19            that the resource requires capital expenditures
20            that were neither known nor reasonably foreseeable
21            at the time it executed the contract and that a
22            prudent owner or operator of such resource would
23            not undertake.
24                (iv) A zero emission facility shall be
25            permitted to terminate the contract in the event
26            the Nuclear Regulatory Commission terminates the

 

 

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1            resource's license.
2            (G) Notwithstanding the requirements of this
3        subsection (d-5), an electric utility that is located
4        in the Midcontinent Independent System Operator, Inc.,
5        or its successor, shall not be required to execute any
6        contracts under this subsection (d-5) unless at least
7        one winning zero emission facility is interconnected
8        directly to the transmission system of the
9        Midcontinent Independent System Operator, Inc., or its
10        successor, at the time the contract is executed. All
11        contracts executed by such electric utility under this
12        subsection (d-5) shall expressly permit termination,
13        at the time, if any, that no zero emission facilities
14        are generating electricity within the Midcontinent
15        Independent System Operator, Inc., or its successor.
16            Termination of a contract under this subparagraph
17        (G) shall become effective 90 days after notice of
18        termination.
19            (H) If the Commission or zero emission facility
20        elects to terminate a contract under subparagraph (E),
21        (F), or (G) of this paragraph (1), as applicable, then
22        the Commission shall reopen the docket in which the
23        Commission approved the zero emission standard
24        procurement plan under subparagraph (C) of this
25        paragraph (1) and enter an order acknowledging the
26        contract termination election.

 

 

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1        (2) For purposes of this subsection (d-5), the amount
2    paid per kilowatthour means the total amount paid for
3    electric service expressed on a per kilowatthour basis. For
4    purposes of this subsection (d-5), the total amount paid
5    for electric service includes, without limitation, amounts
6    paid for supply, transmission, distribution, surcharges,
7    and add-on taxes.
8        Notwithstanding the requirements of this subsection
9    (d-5), the contracts executed under this subsection (d-5)
10    shall provide that the total of zero emission credits
11    procured under a procurement plan shall be subject to the
12    limitations of this paragraph (2). For each rolling 4-year
13    period, the contractual volume shall be reduced for all
14    retail customers based on the amount necessary to limit the
15    annual estimated average net increase for each year in each
16    4-year period due to the costs of these credits included in
17    the amounts paid by eligible retail customers in connection
18    with electric service to no more than 2.015% of the amount
19    paid per kilowatthour by eligible retail customers during
20    the year ending May 31, 2009. The result of this
21    computation shall apply to and reduce the procurement for
22    all retail customers, and all those customers shall pay the
23    same single, uniform cents per kilowatthour charge under
24    subsection (k) of Section 16-108 of the Public Utilities
25    Act. To arrive at a maximum dollar amount of zero emission
26    credits to be procured for the particular delivery year,

 

 

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1    the resulting per kilowatthour amount shall be applied to
2    the actual amount of kilowatthours of electricity
3    delivered by the electric utility in the delivery year
4    immediately prior to the procurement, to all retail
5    customers in its service territory. The calculations
6    required by this paragraph (2) shall be made only once for
7    each procurement plan year. Once the determination as to
8    the amount of zero emission credits to procure is made
9    based on the calculations set forth in this paragraph (2),
10    no subsequent rate impact determinations shall be made and
11    no adjustments to those contract amounts shall be allowed.
12    All costs incurred under those contracts and in
13    implementing this subsection (d-5) shall be recovered by
14    the electric utility as provided in this Section.
15        No later than June 30, 2019, the Commission shall
16    review the limitation on the amount of zero emission
17    credits procured under this subsection (d-5) and report to
18    the General Assembly its findings as to whether that
19    limitation unduly constrains the procurement of
20    cost-effective zero emission credits.
21        (3) Six years after the execution of a contract under
22    this subsection (d-5), the Agency shall determine whether
23    the actual zero emission credit payments received by the
24    supplier over the 6-year period exceed the Average ZEC
25    Payment. In addition, if a zero emission facility's
26    contract is terminated under subparagraph (E), (F), or (G)

 

 

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1    of paragraph (1) of this subsection (d-5), then the Agency
2    shall determine whether the actual zero emission credit
3    payments received by the supplier over the term of the
4    contract exceed the Average ZEC Payment, after taking into
5    account any amounts previously credited back to the utility
6    under this paragraph (3). If the Agency determines that the
7    actual zero emission credit payments received by the
8    supplier over the relevant period exceed the Average ZEC
9    Payment, then the supplier shall credit the difference back
10    to the utility. The amount of the credit shall be remitted
11    to the applicable electric utility no later than 120 days
12    after the Agency's determination, which the utility shall
13    reflect as a credit on its retail customer bills as soon as
14    practicable; however, the credit remitted to the utility
15    shall not exceed the total amount of payments received by
16    the facility under its contract.
17        For purposes of this Section, the Average ZEC Payment
18    shall be calculated by multiplying the quantity of zero
19    emission credits delivered under the contract times the
20    average contract price. The average contract price shall be
21    determined by subtracting the amount calculated under
22    subparagraph (B) of this paragraph (3) from the amount
23    calculated under subparagraph (A) of this paragraph (3), as
24    follows:
25            (A) The average of the Social Cost of Carbon, as
26        defined in subparagraph (B) of paragraph (1) of this

 

 

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1        subsection (d-5), during the term of the contract.
2            (B) The average of the market price indices, as
3        defined in subparagraph (B) of paragraph (1) of this
4        subsection (d-5), during the term of the contract,
5        minus the baseline market price index, as defined in
6        subparagraph (B) of paragraph (1) of this subsection
7        (d-5).
8    If the subtraction yields a negative number, then the
9Average ZEC Payment shall be zero.
10        (4) Cost-effective zero emission credits procured from
11    zero emission facilities shall satisfy the applicable
12    definitions set forth in Section 1-10 of this Act.
13        (5) The electric utility shall retire all zero emission
14    credits used to comply with the requirements of this
15    subsection (d-5).
16        (6) Electric utilities shall be entitled to recover all
17    of the costs associated with the procurement of zero
18    emission credits through an automatic adjustment clause
19    tariff in accordance with subsection (k) of Section 16-108
20    of the Public Utilities Act.
21    (e) The draft procurement plans are subject to public
22comment, as required by Section 16-111.5 of the Public
23Utilities Act.
24    (f) The Agency shall submit the final procurement plan to
25the Commission. The Agency shall revise a procurement plan if
26the Commission determines that it does not meet the standards

 

 

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1set forth in Section 16-111.5 of the Public Utilities Act.
2    (g) The Agency shall assess fees to each affected utility
3to recover the costs incurred in preparation of the annual
4procurement plan for the utility.
5    (h) The Agency shall assess fees to each bidder to recover
6the costs incurred in connection with a competitive procurement
7process.
8    (i) A renewable energy credit, carbon emission credit, or
9zero emission credit can only be used once to comply with a
10single portfolio or other standard as set forth in subsection
11(c), subsection (d), or subsection (d-5) of this Section,
12respectively. A renewable energy credit, carbon emission
13credit, or zero emission credit cannot be used to satisfy the
14requirements of more than one standard. If more than one type
15of credit is issued for the same megawatt hour of energy, only
16one credit can be used to satisfy the requirements of a single
17standard. After such use, the credit must be retired together
18with any other credits issued for the same megawatt hour of
19energy.
20(Source: P.A. 98-463, eff. 8-16-13; 99-536, eff. 7-8-16.)
 
21    Section 10. The Illinois Procurement Code is amended by
22changing Section 20-10 as follows:
 
23    (30 ILCS 500/20-10)
24    (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,

 

 

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1and 98-1076)
2    Sec. 20-10. Competitive sealed bidding; reverse auction.
3    (a) Conditions for use. All contracts shall be awarded by
4competitive sealed bidding except as otherwise provided in
5Section 20-5.
6    (b) Invitation for bids. An invitation for bids shall be
7issued and shall include a purchase description and the
8material contractual terms and conditions applicable to the
9procurement.
10    (c) Public notice. Public notice of the invitation for bids
11shall be published in the Illinois Procurement Bulletin at
12least 14 calendar days before the date set in the invitation
13for the opening of bids.
14    (d) Bid opening. Bids shall be opened publicly in the
15presence of one or more witnesses at the time and place
16designated in the invitation for bids. The name of each bidder,
17the amount of each bid, and other relevant information as may
18be specified by rule shall be recorded. After the award of the
19contract, the winning bid and the record of each unsuccessful
20bid shall be open to public inspection.
21    (e) Bid acceptance and bid evaluation. Bids shall be
22unconditionally accepted without alteration or correction,
23except as authorized in this Code. Bids shall be evaluated
24based on the requirements set forth in the invitation for bids,
25which may include criteria to determine acceptability such as
26inspection, testing, quality, workmanship, delivery, and

 

 

09900SB2814ham002- 145 -LRB099 19990 RJF 51572 a

1suitability for a particular purpose. Those criteria that will
2affect the bid price and be considered in evaluation for award,
3such as discounts, transportation costs, and total or life
4cycle costs, shall be objectively measurable. The invitation
5for bids shall set forth the evaluation criteria to be used.
6    (f) Correction or withdrawal of bids. Correction or
7withdrawal of inadvertently erroneous bids before or after
8award, or cancellation of awards of contracts based on bid
9mistakes, shall be permitted in accordance with rules. After
10bid opening, no changes in bid prices or other provisions of
11bids prejudicial to the interest of the State or fair
12competition shall be permitted. All decisions to permit the
13correction or withdrawal of bids based on bid mistakes shall be
14supported by written determination made by a State purchasing
15officer.
16    (g) Award. The contract shall be awarded with reasonable
17promptness by written notice to the lowest responsible and
18responsive bidder whose bid meets the requirements and criteria
19set forth in the invitation for bids, except when a State
20purchasing officer determines it is not in the best interest of
21the State and by written explanation determines another bidder
22shall receive the award. The explanation shall appear in the
23appropriate volume of the Illinois Procurement Bulletin. The
24written explanation must include:
25        (1) a description of the agency's needs;
26        (2) a determination that the anticipated cost will be

 

 

09900SB2814ham002- 146 -LRB099 19990 RJF 51572 a

1    fair and reasonable;
2        (3) a listing of all responsible and responsive
3    bidders; and
4        (4) the name of the bidder selected, the total contract
5    price, and the reasons for selecting that bidder.
6    Each chief procurement officer may adopt guidelines to
7implement the requirements of this subsection (g).
8    The written explanation shall be filed with the Legislative
9Audit Commission and the Procurement Policy Board, and be made
10available for inspection by the public, within 30 calendar days
11after the agency's decision to award the contract.
12    (h) Multi-step sealed bidding. When it is considered
13impracticable to initially prepare a purchase description to
14support an award based on price, an invitation for bids may be
15issued requesting the submission of unpriced offers to be
16followed by an invitation for bids limited to those bidders
17whose offers have been qualified under the criteria set forth
18in the first solicitation.
19    (i) Alternative procedures. Notwithstanding any other
20provision of this Act to the contrary, the Director of the
21Illinois Power Agency may create alternative bidding
22procedures to be used in procuring professional services under
23subsections subsection (a) and (c) of Section 1-75 and
24subsection (d) of Section 1-78 of the Illinois Power Agency Act
25and Section 16-111.5(c) of the Public Utilities Act and to
26procure renewable energy resources under Section 1-56 of the

 

 

09900SB2814ham002- 147 -LRB099 19990 RJF 51572 a

1Illinois Power Agency Act. These alternative procedures shall
2be set forth together with the other criteria contained in the
3invitation for bids, and shall appear in the appropriate volume
4of the Illinois Procurement Bulletin.
5    (j) Reverse auction. Notwithstanding any other provision
6of this Section and in accordance with rules adopted by the
7chief procurement officer, that chief procurement officer may
8procure supplies or services through a competitive electronic
9auction bidding process after the chief procurement officer
10determines that the use of such a process will be in the best
11interest of the State. The chief procurement officer shall
12publish that determination in his or her next volume of the
13Illinois Procurement Bulletin.
14    An invitation for bids shall be issued and shall include
15(i) a procurement description, (ii) all contractual terms,
16whenever practical, and (iii) conditions applicable to the
17procurement, including a notice that bids will be received in
18an electronic auction manner.
19    Public notice of the invitation for bids shall be given in
20the same manner as provided in subsection (c).
21    Bids shall be accepted electronically at the time and in
22the manner designated in the invitation for bids. During the
23auction, a bidder's price shall be disclosed to other bidders.
24Bidders shall have the opportunity to reduce their bid prices
25during the auction. At the conclusion of the auction, the
26record of the bid prices received and the name of each bidder

 

 

09900SB2814ham002- 148 -LRB099 19990 RJF 51572 a

1shall be open to public inspection.
2    After the auction period has terminated, withdrawal of bids
3shall be permitted as provided in subsection (f).
4    The contract shall be awarded within 60 calendar days after
5the auction by written notice to the lowest responsible bidder,
6or all bids shall be rejected except as otherwise provided in
7this Code. Extensions of the date for the award may be made by
8mutual written consent of the State purchasing officer and the
9lowest responsible bidder.
10    This subsection does not apply to (i) procurements of
11professional and artistic services, (ii) telecommunications
12services, communication services, and information services,
13and (iii) contracts for construction projects, including
14design professional services.
15(Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12;
1698-1076, eff. 1-1-15.)
 
17    (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
18and 98-1076)
19    Sec. 20-10. Competitive sealed bidding; reverse auction.
20    (a) Conditions for use. All contracts shall be awarded by
21competitive sealed bidding except as otherwise provided in
22Section 20-5.
23    (b) Invitation for bids. An invitation for bids shall be
24issued and shall include a purchase description and the
25material contractual terms and conditions applicable to the

 

 

09900SB2814ham002- 149 -LRB099 19990 RJF 51572 a

1procurement.
2    (c) Public notice. Public notice of the invitation for bids
3shall be published in the Illinois Procurement Bulletin at
4least 14 calendar days before the date set in the invitation
5for the opening of bids.
6    (d) Bid opening. Bids shall be opened publicly in the
7presence of one or more witnesses at the time and place
8designated in the invitation for bids. The name of each bidder,
9the amount of each bid, and other relevant information as may
10be specified by rule shall be recorded. After the award of the
11contract, the winning bid and the record of each unsuccessful
12bid shall be open to public inspection.
13    (e) Bid acceptance and bid evaluation. Bids shall be
14unconditionally accepted without alteration or correction,
15except as authorized in this Code. Bids shall be evaluated
16based on the requirements set forth in the invitation for bids,
17which may include criteria to determine acceptability such as
18inspection, testing, quality, workmanship, delivery, and
19suitability for a particular purpose. Those criteria that will
20affect the bid price and be considered in evaluation for award,
21such as discounts, transportation costs, and total or life
22cycle costs, shall be objectively measurable. The invitation
23for bids shall set forth the evaluation criteria to be used.
24    (f) Correction or withdrawal of bids. Correction or
25withdrawal of inadvertently erroneous bids before or after
26award, or cancellation of awards of contracts based on bid

 

 

09900SB2814ham002- 150 -LRB099 19990 RJF 51572 a

1mistakes, shall be permitted in accordance with rules. After
2bid opening, no changes in bid prices or other provisions of
3bids prejudicial to the interest of the State or fair
4competition shall be permitted. All decisions to permit the
5correction or withdrawal of bids based on bid mistakes shall be
6supported by written determination made by a State purchasing
7officer.
8    (g) Award. The contract shall be awarded with reasonable
9promptness by written notice to the lowest responsible and
10responsive bidder whose bid meets the requirements and criteria
11set forth in the invitation for bids, except when a State
12purchasing officer determines it is not in the best interest of
13the State and by written explanation determines another bidder
14shall receive the award. The explanation shall appear in the
15appropriate volume of the Illinois Procurement Bulletin. The
16written explanation must include:
17        (1) a description of the agency's needs;
18        (2) a determination that the anticipated cost will be
19    fair and reasonable;
20        (3) a listing of all responsible and responsive
21    bidders; and
22        (4) the name of the bidder selected, the total contract
23    price, and the reasons for selecting that bidder.
24    Each chief procurement officer may adopt guidelines to
25implement the requirements of this subsection (g).
26    The written explanation shall be filed with the Legislative

 

 

09900SB2814ham002- 151 -LRB099 19990 RJF 51572 a

1Audit Commission and the Procurement Policy Board, and be made
2available for inspection by the public, within 30 days after
3the agency's decision to award the contract.
4    (h) Multi-step sealed bidding. When it is considered
5impracticable to initially prepare a purchase description to
6support an award based on price, an invitation for bids may be
7issued requesting the submission of unpriced offers to be
8followed by an invitation for bids limited to those bidders
9whose offers have been qualified under the criteria set forth
10in the first solicitation.
11    (i) Alternative procedures. Notwithstanding any other
12provision of this Act to the contrary, the Director of the
13Illinois Power Agency may create alternative bidding
14procedures to be used in procuring professional services under
15subsections subsection (a) and (c) of Section 1-75 and
16subsection (d) of Section 1-78 of the Illinois Power Agency Act
17and Section 16-111.5(c) of the Public Utilities Act and to
18procure renewable energy resources under Section 1-56 of the
19Illinois Power Agency Act. These alternative procedures shall
20be set forth together with the other criteria contained in the
21invitation for bids, and shall appear in the appropriate volume
22of the Illinois Procurement Bulletin.
23    (j) Reverse auction. Notwithstanding any other provision
24of this Section and in accordance with rules adopted by the
25chief procurement officer, that chief procurement officer may
26procure supplies or services through a competitive electronic

 

 

09900SB2814ham002- 152 -LRB099 19990 RJF 51572 a

1auction bidding process after the chief procurement officer
2determines that the use of such a process will be in the best
3interest of the State. The chief procurement officer shall
4publish that determination in his or her next volume of the
5Illinois Procurement Bulletin.
6    An invitation for bids shall be issued and shall include
7(i) a procurement description, (ii) all contractual terms,
8whenever practical, and (iii) conditions applicable to the
9procurement, including a notice that bids will be received in
10an electronic auction manner.
11    Public notice of the invitation for bids shall be given in
12the same manner as provided in subsection (c).
13    Bids shall be accepted electronically at the time and in
14the manner designated in the invitation for bids. During the
15auction, a bidder's price shall be disclosed to other bidders.
16Bidders shall have the opportunity to reduce their bid prices
17during the auction. At the conclusion of the auction, the
18record of the bid prices received and the name of each bidder
19shall be open to public inspection.
20    After the auction period has terminated, withdrawal of bids
21shall be permitted as provided in subsection (f).
22    The contract shall be awarded within 60 calendar days after
23the auction by written notice to the lowest responsible bidder,
24or all bids shall be rejected except as otherwise provided in
25this Code. Extensions of the date for the award may be made by
26mutual written consent of the State purchasing officer and the

 

 

09900SB2814ham002- 153 -LRB099 19990 RJF 51572 a

1lowest responsible bidder.
2    This subsection does not apply to (i) procurements of
3professional and artistic services, (ii) telecommunications
4services, communication services, and information services,
5and (iii) contracts for construction projects, including
6design professional services.
7(Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12;
898-1076, eff. 1-1-15.)
 
9    Section 15. The Public Utilities Act is amended by changing
10Sections 8-103, 8-104, 16-107, 16-107.5, 16-108, 16-111.5,
1116-111.5B, 16-111.7, 16-115A, 16-115D, 16-119A, and 16-127 and
12by adding Sections 8-103B, 8-512, 9-105, 9-107, 16-103.3,
1316-107.6, 16-107.7, 16-108.9, and 16-108.10 as follows:
 
14    (220 ILCS 5/8-103)
15    Sec. 8-103. Energy efficiency and demand-response
16measures.
17    (a) It is the policy of the State that electric utilities
18are required to use cost-effective energy efficiency and
19demand-response measures to reduce delivery load. Requiring
20investment in cost-effective energy efficiency and
21demand-response measures will reduce direct and indirect costs
22to consumers by decreasing environmental impacts and by
23avoiding or delaying the need for new generation, transmission,
24and distribution infrastructure. It serves the public interest

 

 

09900SB2814ham002- 154 -LRB099 19990 RJF 51572 a

1to allow electric utilities to recover costs for reasonably and
2prudently incurred expenses for energy efficiency and
3demand-response measures. As used in this Section,
4"cost-effective" means that the measures satisfy the total
5resource cost test. The low-income measures described in
6subsection (f)(4) of this Section shall not be required to meet
7the total resource cost test. For purposes of this Section, the
8terms "energy-efficiency", "demand-response", "electric
9utility", and "total resource cost test" shall have the
10meanings set forth in the Illinois Power Agency Act. For
11purposes of this Section, the amount per kilowatthour means the
12total amount paid for electric service expressed on a per
13kilowatthour basis. For purposes of this Section, the total
14amount paid for electric service includes without limitation
15estimated amounts paid for supply, transmission, distribution,
16surcharges, and add-on-taxes.
17    (a-5) This Section applies to electric utilities serving
18500,000 or less but more than 200,000 retail customers in this
19State. Through December 31, 2017, this Section also applies to
20electric utilities serving more than 500,000 retail customers
21in the State.
22    (b) Electric utilities shall implement cost-effective
23energy efficiency measures to meet the following incremental
24annual energy savings goals:
25        (1) 0.2% of energy delivered in the year commencing
26    June 1, 2008;

 

 

09900SB2814ham002- 155 -LRB099 19990 RJF 51572 a

1        (2) 0.4% of energy delivered in the year commencing
2    June 1, 2009;
3        (3) 0.6% of energy delivered in the year commencing
4    June 1, 2010;
5        (4) 0.8% of energy delivered in the year commencing
6    June 1, 2011;
7        (5) 1% of energy delivered in the year commencing June
8    1, 2012;
9        (6) 1.4% of energy delivered in the year commencing
10    June 1, 2013;
11        (7) 1.8% of energy delivered in the year commencing
12    June 1, 2014; and
13        (8) 2% of energy delivered in the year commencing June
14    1, 2015 and each year thereafter.
15    Electric utilities may comply with this subsection (b) by
16meeting the annual incremental savings goal in the applicable
17year or by showing that the total cumulative annual savings
18within a 3-year planning period associated with measures
19implemented after May 31, 2014 was equal to the sum of each
20annual incremental savings requirement from May 31, 2014
21through the end of the applicable year.
22    (c) Electric utilities shall implement cost-effective
23demand-response measures to reduce peak demand by 0.1% over the
24prior year for eligible retail customers, as defined in Section
2516-111.5 of this Act, and for customers that elect hourly
26service from the utility pursuant to Section 16-107 of this

 

 

09900SB2814ham002- 156 -LRB099 19990 RJF 51572 a

1Act, provided those customers have not been declared
2competitive. This requirement commences June 1, 2008 and
3continues for 10 years.
4    (d) Notwithstanding the requirements of subsections (b)
5and (c) of this Section, an electric utility shall reduce the
6amount of energy efficiency and demand-response measures
7implemented over a 3-year planning period by an amount
8necessary to limit the estimated average annual increase in the
9amounts paid by retail customers in connection with electric
10service due to the cost of those measures to:
11        (1) in 2008, no more than 0.5% of the amount paid per
12    kilowatthour by those customers during the year ending May
13    31, 2007;
14        (2) in 2009, the greater of an additional 0.5% of the
15    amount paid per kilowatthour by those customers during the
16    year ending May 31, 2008 or 1% of the amount paid per
17    kilowatthour by those customers during the year ending May
18    31, 2007;
19        (3) in 2010, the greater of an additional 0.5% of the
20    amount paid per kilowatthour by those customers during the
21    year ending May 31, 2009 or 1.5% of the amount paid per
22    kilowatthour by those customers during the year ending May
23    31, 2007;
24        (4) in 2011, the greater of an additional 0.5% of the
25    amount paid per kilowatthour by those customers during the
26    year ending May 31, 2010 or 2% of the amount paid per

 

 

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1    kilowatthour by those customers during the year ending May
2    31, 2007; and
3        (5) thereafter, the amount of energy efficiency and
4    demand-response measures implemented for any single year
5    shall be reduced by an amount necessary to limit the
6    estimated average net increase due to the cost of these
7    measures included in the amounts paid by eligible retail
8    customers in connection with electric service to no more
9    than the greater of 2.015% of the amount paid per
10    kilowatthour by those customers during the year ending May
11    31, 2007 or the incremental amount per kilowatthour paid
12    for these measures in 2011.
13    No later than June 30, 2011, the Commission shall review
14the limitation on the amount of energy efficiency and
15demand-response measures implemented pursuant to this Section
16and report to the General Assembly its findings as to whether
17that limitation unduly constrains the procurement of energy
18efficiency and demand-response measures.
19    (e) Electric utilities shall be responsible for overseeing
20the design, development, and filing of energy efficiency and
21demand-response plans with the Commission. Electric utilities
22shall implement 100% of the demand-response measures in the
23plans. Electric utilities shall implement 75% of the energy
24efficiency measures approved by the Commission, and may, as
25part of that implementation, outsource various aspects of
26program development and implementation. The remaining 25% of

 

 

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1those energy efficiency measures approved by the Commission
2shall be implemented by the Department of Commerce and Economic
3Opportunity, and must be designed in conjunction with the
4utility and the filing process. The Department may outsource
5development and implementation of energy efficiency measures.
6A minimum of 10% of the entire portfolio of cost-effective
7energy efficiency measures shall be procured from units of
8local government, municipal corporations, school districts,
9and community college districts. The Department shall
10coordinate the implementation of these measures.
11    The apportionment of the dollars to cover the costs to
12implement the Department's share of the portfolio of energy
13efficiency measures shall be made to the Department once the
14Department has executed rebate agreements, grants, or
15contracts for energy efficiency measures and provided
16supporting documentation for those rebate agreements, grants,
17and contracts to the utility. The Department is authorized to
18adopt any rules necessary and prescribe procedures in order to
19ensure compliance by applicants in carrying out the purposes of
20rebate agreements for energy efficiency measures implemented
21by the Department made under this Section.
22    The details of the measures implemented by the Department
23shall be submitted by the Department to the Commission in
24connection with the utility's filing regarding the energy
25efficiency and demand-response measures that the utility
26implements.

 

 

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1    A utility providing approved energy efficiency and
2demand-response measures in the State shall be permitted to
3recover costs of those measures through an automatic adjustment
4clause tariff filed with and approved by the Commission. The
5tariff shall be established outside the context of a general
6rate case. Each year the Commission shall initiate a review to
7reconcile any amounts collected with the actual costs and to
8determine the required adjustment to the annual tariff factor
9to match annual expenditures.
10    Each utility shall include, in its recovery of costs, the
11costs estimated for both the utility's and the Department's
12implementation of energy efficiency and demand-response
13measures. Costs collected by the utility for measures
14implemented by the Department shall be submitted to the
15Department pursuant to Section 605-323 of the Civil
16Administrative Code of Illinois, shall be deposited into the
17Energy Efficiency Portfolio Standards Fund, and shall be used
18by the Department solely for the purpose of implementing these
19measures. A utility shall not be required to advance any moneys
20to the Department but only to forward such funds as it has
21collected. The Department shall report to the Commission on an
22annual basis regarding the costs actually incurred by the
23Department in the implementation of the measures. Any changes
24to the costs of energy efficiency measures as a result of plan
25modifications shall be appropriately reflected in amounts
26recovered by the utility and turned over to the Department.

 

 

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1    The portfolio of measures, administered by both the
2utilities and the Department, shall, in combination, be
3designed to achieve the annual savings targets described in
4subsections (b) and (c) of this Section, as modified by
5subsection (d) of this Section.
6    The utility and the Department shall agree upon a
7reasonable portfolio of measures and determine the measurable
8corresponding percentage of the savings goals associated with
9measures implemented by the utility or Department.
10    No utility shall be assessed a penalty under subsection (f)
11of this Section for failure to make a timely filing if that
12failure is the result of a lack of agreement with the
13Department with respect to the allocation of responsibilities
14or related costs or target assignments. In that case, the
15Department and the utility shall file their respective plans
16with the Commission and the Commission shall determine an
17appropriate division of measures and programs that meets the
18requirements of this Section.
19    If the Department is unable to meet incremental annual
20performance goals for the portion of the portfolio implemented
21by the Department, then the utility and the Department shall
22jointly submit a modified filing to the Commission explaining
23the performance shortfall and recommending an appropriate
24course going forward, including any program modifications that
25may be appropriate in light of the evaluations conducted under
26item (7) of subsection (f) of this Section. In this case, the

 

 

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1utility obligation to collect the Department's costs and turn
2over those funds to the Department under this subsection (e)
3shall continue only if the Commission approves the
4modifications to the plan proposed by the Department.
5    (f) No later than November 15, 2007, each electric utility
6shall file an energy efficiency and demand-response plan with
7the Commission to meet the energy efficiency and
8demand-response standards for 2008 through 2010. No later than
9October 1, 2010, each electric utility shall file an energy
10efficiency and demand-response plan with the Commission to meet
11the energy efficiency and demand-response standards for 2011
12through 2013. Every 3 years thereafter, each electric utility
13shall file, no later than September 1, an energy efficiency and
14demand-response plan with the Commission. If a utility does not
15file such a plan by September 1 of an applicable year, it shall
16face a penalty of $100,000 per day until the plan is filed.
17Each utility's plan shall set forth the utility's proposals to
18meet the utility's portion of the energy efficiency standards
19identified in subsection (b) and the demand-response standards
20identified in subsection (c) of this Section as modified by
21subsections (d) and (e), taking into account the unique
22circumstances of the utility's service territory. The
23Commission shall seek public comment on the utility's plan and
24shall issue an order approving or disapproving each plan within
255 months after its submission. If the Commission disapproves a
26plan, the Commission shall, within 30 days, describe in detail

 

 

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1the reasons for the disapproval and describe a path by which
2the utility may file a revised draft of the plan to address the
3Commission's concerns satisfactorily. If the utility does not
4refile with the Commission within 60 days, the utility shall be
5subject to penalties at a rate of $100,000 per day until the
6plan is filed. This process shall continue, and penalties shall
7accrue, until the utility has successfully filed a portfolio of
8energy efficiency and demand-response measures. Penalties
9shall be deposited into the Energy Efficiency Trust Fund. In
10submitting proposed energy efficiency and demand-response
11plans and funding levels to meet the savings goals adopted by
12this Act the utility shall:
13        (1) Demonstrate that its proposed energy efficiency
14    and demand-response measures will achieve the requirements
15    that are identified in subsections (b) and (c) of this
16    Section, as modified by subsections (d) and (e).
17        (2) Present specific proposals to implement new
18    building and appliance standards that have been placed into
19    effect.
20        (3) Present estimates of the total amount paid for
21    electric service expressed on a per kilowatthour basis
22    associated with the proposed portfolio of measures
23    designed to meet the requirements that are identified in
24    subsections (b) and (c) of this Section, as modified by
25    subsections (d) and (e).
26        (4) Coordinate with the Department to present a

 

 

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1    portfolio of energy efficiency measures proportionate to
2    the share of total annual utility revenues in Illinois from
3    households at or below 150% of the poverty level. The
4    energy efficiency programs shall be targeted to households
5    with incomes at or below 80% of area median income.
6        (5) Demonstrate that its overall portfolio of energy
7    efficiency and demand-response measures, not including
8    programs covered by item (4) of this subsection (f), are
9    cost-effective using the total resource cost test and
10    represent a diverse cross-section of opportunities for
11    customers of all rate classes to participate in the
12    programs.
13        (6) Include a proposed cost-recovery tariff mechanism
14    to fund the proposed energy efficiency and demand-response
15    measures and to ensure the recovery of the prudently and
16    reasonably incurred costs of Commission-approved programs.
17        (7) Provide for an annual independent evaluation of the
18    performance of the cost-effectiveness of the utility's
19    portfolio of measures and the Department's portfolio of
20    measures, as well as a full review of the 3-year results of
21    the broader net program impacts and, to the extent
22    practical, for adjustment of the measures on a
23    going-forward basis as a result of the evaluations. The
24    resources dedicated to evaluation shall not exceed 3% of
25    portfolio resources in any given year.
26    (g) No more than 3% of energy efficiency and

 

 

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1demand-response program revenue may be allocated for
2demonstration of breakthrough equipment and devices.
3    (h) This Section does not apply to an electric utility that
4on December 31, 2005 provided electric service to fewer than
5100,000 customers in Illinois.
6    (i) If, after 2 years, an electric utility fails to meet
7the efficiency standard specified in subsection (b) of this
8Section, as modified by subsections (d) and (e), it shall make
9a contribution to the Low-Income Home Energy Assistance
10Program. The combined total liability for failure to meet the
11goal shall be $1,000,000, which shall be assessed as follows: a
12large electric utility shall pay $665,000, and a medium
13electric utility shall pay $335,000. If, after 3 years, an
14electric utility fails to meet the efficiency standard
15specified in subsection (b) of this Section, as modified by
16subsections (d) and (e), it shall make a contribution to the
17Low-Income Home Energy Assistance Program. The combined total
18liability for failure to meet the goal shall be $1,000,000,
19which shall be assessed as follows: a large electric utility
20shall pay $665,000, and a medium electric utility shall pay
21$335,000. In addition, the responsibility for implementing the
22energy efficiency measures of the utility making the payment
23shall be transferred to the Illinois Power Agency if, after 3
24years, or in any subsequent 3-year period, the utility fails to
25meet the efficiency standard specified in subsection (b) of
26this Section, as modified by subsections (d) and (e). The

 

 

09900SB2814ham002- 165 -LRB099 19990 RJF 51572 a

1Agency shall implement a competitive procurement program to
2procure resources necessary to meet the standards specified in
3this Section as modified by subsections (d) and (e), with costs
4for those resources to be recovered in the same manner as
5products purchased through the procurement plan as provided in
6Section 16-111.5. The Director shall implement this
7requirement in connection with the procurement plan as provided
8in Section 16-111.5.
9    For purposes of this Section, (i) a "large electric
10utility" is an electric utility that, on December 31, 2005,
11served more than 2,000,000 electric customers in Illinois; (ii)
12a "medium electric utility" is an electric utility that, on
13December 31, 2005, served 2,000,000 or fewer but more than
14100,000 electric customers in Illinois; and (iii) Illinois
15electric utilities that are affiliated by virtue of a common
16parent company are considered a single electric utility.
17    (j) If, after 3 years, or any subsequent 3-year period, the
18Department fails to implement the Department's share of energy
19efficiency measures required by the standards in subsection
20(b), then the Illinois Power Agency may assume responsibility
21for and control of the Department's share of the required
22energy efficiency measures. The Agency shall implement a
23competitive procurement program to procure resources necessary
24to meet the standards specified in this Section, with the costs
25of these resources to be recovered in the same manner as
26provided for the Department in this Section.

 

 

09900SB2814ham002- 166 -LRB099 19990 RJF 51572 a

1    (k) No electric utility shall be deemed to have failed to
2meet the energy efficiency standards to the extent any such
3failure is due to a failure of the Department or the Agency.
4    (l)(1) The energy efficiency and demand-response plans of
5electric utilities serving more than 500,000 retail customers
6in the State that were approved by the Commission on or before
7the effective date of this amendatory Act of the 99th General
8Assembly for the period June 1, 2014 through May 31, 2017 shall
9continue to be in force and effect through December 31, 2017 so
10that the energy efficiency programs set forth in those plans
11continue to be offered during the period June 1, 2017 through
12December 31, 2017. Each such utility is authorized to increase,
13on a pro rata basis, the energy savings goals and budgets
14approved in its plan to reflect the additional 7 months of the
15plan's operation.
16        (2) If an electric utility serving more than 500,000
17    retail customers in the State filed with the Commission,
18    under subsection (f) of this Section, its proposed energy
19    efficiency and demand-response plan for the period June 1,
20    2017 through May 31, 2020, and the Commission has not yet
21    entered its final order approving such plan on or before
22    the effective date of this amendatory Act of the 99th
23    General Assembly, then the utility shall file a notice of
24    withdrawal with the Commission, following such effective
25    date, to withdraw the proposed energy efficiency and
26    demand-response plan. Upon receipt of such notice, the

 

 

09900SB2814ham002- 167 -LRB099 19990 RJF 51572 a

1    Commission shall dismiss with prejudice any docket that had
2    been initiated to investigate such plan, and the plan and
3    the record related thereto shall not be the subject of any
4    further hearing, investigation, or proceeding of any kind.
5        (3) For those electric utilities that serve more than
6    500,000 retail customers in the State, this amendatory Act
7    of the 99th General Assembly preempts and supersedes any
8    orders entered by the Commission that approved such
9    utilities' energy efficiency and demand response plans for
10    the period commencing June 1, 2017 and ending May 31, 2020.
11    Any such orders shall be void, and the provisions of
12    paragraph (1) of this subsection (l) shall apply.
13(Source: P.A. 97-616, eff. 10-26-11; 97-841, eff. 7-20-12;
1498-90, eff. 7-15-13.)
 
15    (220 ILCS 5/8-103B new)
16    Sec. 8-103B. Energy efficiency and demand-response
17measures.
18    (a) It is the policy of the State that electric utilities
19are required to use cost-effective energy efficiency and
20demand-response measures to reduce delivery load. Requiring
21investment in cost-effective energy efficiency and
22demand-response measures will reduce direct and indirect costs
23to consumers by decreasing environmental impacts and by
24avoiding or delaying the need for new generation, transmission,
25and distribution infrastructure. It serves the public interest

 

 

09900SB2814ham002- 168 -LRB099 19990 RJF 51572 a

1to allow electric utilities to recover costs for reasonably and
2prudently incurred expenditures for energy efficiency and
3demand-response measures. As used in this Section,
4"cost-effective" means that the measures satisfy the total
5resource cost test. The low-income measures described in
6subsection (c) of this Section shall not be required to meet
7the total resource cost test. For purposes of this Section, the
8terms "energy-efficiency", "demand-response", "electric
9utility", and "total resource cost test" have the meanings set
10forth in the Illinois Power Agency Act. For purposes of this
11Section, the amount per kilowatthour means the total amount
12paid for electric service expressed on a per kilowatthour
13basis. For purposes of this Section, the total amount paid for
14electric service includes, without limitation, estimated
15amounts paid for supply, transmission, distribution,
16surcharges, and add-on taxes.
17    (a-5) This Section applies to electric utilities serving
18more than 500,000 retail customers in the State for those
19multi-year plans commencing after December 31, 2017.
20    (b) For purposes of this Section, electric utilities
21subject to this Section that serve more than 3,000,000 retail
22customers in the State shall be deemed to have achieved a
23cumulative persisting annual savings of 6.6%, or 5,777,692
24megawatt-hours (MWhs), from energy efficiency measures and
25programs implemented during the period beginning January 1,
262012 and ending December 31, 2017, which percent is based on

 

 

09900SB2814ham002- 169 -LRB099 19990 RJF 51572 a

1the deemed average weather normalized sales of electric power
2and energy during calendar years 2014, 2015, and 2016 of
388,000,000 MWhs. The 88,000,000 MWhs of deemed electric power
4and energy sales shall also serve as the baseline value for
5calculating the cumulative persisting annual savings in
6subsection (b-5). After 2017, the deemed value of cumulative
7persisting annual savings from energy efficiency measures and
8programs implemented during the period beginning January 1,
92012 and ending December 31, 2017, shall be reduced each year,
10as follows, and the applicable value shall be applied to and
11count toward the utility's achievement of the cumulative
12persisting annual savings goals set forth in subsection (b-5):
13        (1) 5.8%, or 5,071,018 MWhs, deemed cumulative
14    persisting annual savings for the year ending December 31,
15    2018;
16        (2) 5.2%, or 4,553,371 MWhs, deemed cumulative
17    persisting annual savings for the year ending December 31,
18    2019;
19        (3) 4.5%, or 3,998,012 MWhs, deemed cumulative
20    persisting annual savings for the year ending December 31,
21    2020;
22        (4) 4.0%, or 3,533,219 MWhs, deemed cumulative
23    persisting annual savings for the year ending December 31,
24    2021;
25        (5) 3.5%, or 3,108,290 MWhs, deemed cumulative
26    persisting annual savings for the year ending December 31,

 

 

09900SB2814ham002- 170 -LRB099 19990 RJF 51572 a

1    2022;
2        (6) 3.1%, or 2,738,689 MWhs, deemed cumulative
3    persisting annual savings for the year ending December 31,
4    2023;
5        (7) 2.8%, or 2,463,055 MWhs, deemed cumulative
6    persisting annual savings for the year ending December 31,
7    2024;
8        (8) 2.5%, or 2,221,716 MWhs, deemed cumulative
9    persisting annual savings for the year ending December 31,
10    2025;
11        (9) 2.3%, or 2,017,109 MWhs, deemed cumulative
12    persisting annual savings for the year ending December 31,
13    2026;
14        (10) 2.1%, or 1,822,754 MWhs, deemed cumulative
15    persisting annual savings for the year ending December 31,
16    2027;
17        (11) 1.8%, or 1,624,769 MWhs, deemed cumulative
18    persisting annual savings for the year ending December 31,
19    2028;
20        (12) 1.7%, or 1,460,039 MWhs, deemed cumulative
21    persisting annual savings for the year ending December 31,
22    2029; and
23        (13) 1.5%, or 1,181,647 MWhs, deemed cumulative
24    persisting annual savings for the year ending December 31,
25    2030.
26    For purposes of this Section, "cumulative persisting

 

 

09900SB2814ham002- 171 -LRB099 19990 RJF 51572 a

1annual savings" means the total electric energy savings in a
2given year from measures installed in that year or in previous
3years, but no earlier than January 1, 2012, that are still
4operational and providing savings in that year because the
5measures have not yet reached the end of their useful lives.
6    (b-5) Beginning in 2018, electric utilities subject to this
7Section that serve more than 3,000,000 retail customers in the
8State shall achieve the following cumulative persisting annual
9savings goals, as modified by subsection (f) of this Section
10and as compared to the deemed baseline of 88,000,000 MWhs of
11electric power and energy sales set forth in subsection (b),
12through the implementation of energy efficiency measures
13during the applicable year and in prior years, but no earlier
14than January 1, 2012:
15        (1) 8% cumulative persisting annual savings for the
16    year ending December 31, 2018;
17        (2) 9.5% cumulative persisting annual savings for the
18    year ending December 31, 2019;
19        (3) 11% cumulative persisting annual savings for the
20    year ending December 31, 2020;
21        (4) 12.5% cumulative persisting annual savings for the
22    year ending December 31, 2021;
23        (5) 14% cumulative persisting annual savings for the
24    year ending December 31, 2022;
25        (6) 15.5% cumulative persisting annual savings for the
26    year ending December 31, 2023;

 

 

09900SB2814ham002- 172 -LRB099 19990 RJF 51572 a

1        (7) 17% cumulative persisting annual savings for the
2    year ending December 31, 2024;
3        (8) 18.5% cumulative persisting annual savings for the
4    year ending December 31, 2025;
5        (9) 19.4% cumulative persisting annual savings for the
6    year ending December 31, 2026;
7        (10) 20.3% cumulative persisting annual savings for
8    the year ending December 31, 2027;
9        (11) 21.2% cumulative persisting annual savings for
10    the year ending December 31, 2028;
11        (12) 22.1% cumulative persisting annual savings for
12    the year ending December 31, 2029; and
13        (13) 23% cumulative persisting annual savings for the
14    year ending December 31, 2030.
15    (b-10) For purposes of this Section, electric utilities
16subject to this Section that serve less than 3,000,000 retail
17customers but more than 500,000 retail customers in the State
18shall be deemed to have achieved a cumulative persisting annual
19savings of 6.6%, or 2,435,400 MWhs, from energy efficiency
20measures and programs implemented during the period beginning
21January 1, 2012 and ending December 31, 2017, which is based on
22the deemed average weather normalized sales of electric power
23and energy during calendar years 2014, 2015, and 2016 of
2436,900,000 MWhs. The 36,900,000 MWhs of deemed electric power
25and energy sales shall also serve as the baseline value for
26calculating the cumulative persisting annual savings in

 

 

09900SB2814ham002- 173 -LRB099 19990 RJF 51572 a

1subsection (b-15). After 2017, the deemed value of cumulative
2persisting annual savings from energy efficiency measures and
3programs implemented during the period beginning January 1,
42012 and ending December 31, 2017, shall be reduced each year,
5as follows, and the applicable value shall be applied to and
6count toward the utility's achievement of the cumulative
7persisting annual savings goals set forth in subsection (b-15):
8        (1) 5.8%, or 2,140,200 MWhs, deemed cumulative
9    persisting annual savings for the year ending December 31,
10    2018;
11        (2) 5.2%, or 1,918,800 MWhs, deemed cumulative
12    persisting annual savings for the year ending December 31,
13    2019;
14        (3) 4.5%, or 1,660,500 MWhs, deemed cumulative
15    persisting annual savings for the year ending December 31,
16    2020;
17        (4) 4.0%, or 1,476,000 MWhs, deemed cumulative
18    persisting annual savings for the year ending December 31,
19    2021;
20        (5) 3.5%, or 1,291,500 MWhs, deemed cumulative
21    persisting annual savings for the year ending December 31,
22    2022;
23        (6) 3.1%, or 1,143,900 MWhs, deemed cumulative
24    persisting annual savings for the year ending December 31,
25    2023;
26        (7) 2.8%, or 1,033,200 MWhs, deemed cumulative

 

 

09900SB2814ham002- 174 -LRB099 19990 RJF 51572 a

1    persisting annual savings for the year ending December 31,
2    2024;
3        (8) 2.5%, or 922,500 MWhs, deemed cumulative
4    persisting annual savings for the year ending December 31,
5    2025;
6        (9) 2.3%, or 848,700 MWhs, deemed cumulative
7    persisting annual savings for the year ending December 31,
8    2026;
9        (10) 2.1%, or 774,900 MWhs, deemed cumulative
10    persisting annual savings for the year ending December 31,
11    2027;
12        (11) 1.8%, or 664,200 MWhs, deemed cumulative
13    persisting annual savings for the year ending December 31,
14    2028;
15        (12) 1.7%, or 627,300 MWhs, deemed cumulative
16    persisting annual savings for the year ending December 31,
17    2029; and
18        (13) 1.5%, or 553,500 MWhs, deemed cumulative
19    persisting annual savings for the year ending December 31,
20    2030.
21    (b-15) Beginning in 2018, electric utilities subject to
22this Section that serve less than 3,000,000 retail customers
23but more than 500,000 retail customers in the State shall
24achieve the following cumulative persisting annual savings
25goals, as modified by subsection (b-20) and subsection (f) of
26this Section and as compared to the deemed baseline of

 

 

09900SB2814ham002- 175 -LRB099 19990 RJF 51572 a

136,900,000 MWhs of electric power and energy sales set forth in
2subsection (b-10), through the implementation of energy
3efficiency measures during the applicable year and in prior
4years, but no earlier than January 1, 2012:
5        (1) 7.275% cumulative persisting annual savings for
6    the year ending December 31, 2018;
7        (2) 7.95% cumulative persisting annual savings for the
8    year ending December 31, 2019;
9        (3) 8.625% cumulative persisting annual savings for
10    the year ending December 31, 2020;
11        (4) 9.3% cumulative persisting annual savings for the
12    year ending December 31, 2021;
13        (5) 9.975% cumulative persisting annual savings for
14    the year ending December 31, 2022;
15        (6) 10.65% cumulative persisting annual savings for
16    the year ending December 31, 2023;
17        (7) 11.325% cumulative persisting annual savings for
18    the year ending December 31, 2024;
19        (8) 12% cumulative persisting annual savings for the
20    year ending December 31, 2025;
21        (9) 12.6% cumulative persisting annual savings for the
22    year ending December 31, 2026;
23        (10) 13.2% cumulative persisting annual savings for
24    the year ending December 31, 2027;
25        (11) 13.8% cumulative persisting annual savings for
26    the year ending December 31, 2028;

 

 

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1        (12) 14.4% cumulative persisting annual savings for
2    the year ending December 31, 2029; and
3        (13) 15% cumulative persisting annual savings for the
4    year ending December 31, 2030.
5    (b-20) Each electric utility subject to this Section may
6include cost-effective voltage optimization measures in its
7plans submitted under subsections (f) and (g) of this Section,
8and the costs incurred by a utility to implement the measures
9under a Commission-approved plan shall be recovered, at the
10utility's election, either through the automatic adjustment
11clause tariff approved under subsection (d) of this Section, an
12energy efficiency formula rate tariff approved under
13subsection (d) of this Section, or under the provisions of
14Article IX or Section 16-108.5 of this Act. For purposes of
15this Section, the measure life of voltage optimization measures
16shall be 15 years. The measure life period is independent of
17the depreciation rate of the voltage optimization assets
18deployed.
19    Within 270 days after the effective date of this amendatory
20Act of the 99th General Assembly, an electric utility that
21serves less than 3,000,000 retail customers but more than
22500,000 retail customers in the State shall file a plan with
23the Commission that identifies the cost-effective voltage
24optimization investment the electric utility plans to
25undertake through December 31, 2024. The Commission, after
26notice and hearing, shall approve or approve with modification

 

 

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1the plan within 120 days after the plan's filing and, in the
2order approving or approving with modification the plan, the
3Commission shall adjust the applicable cumulative persisting
4annual savings goals set forth in subsection (b-15) to reflect
5any amount of cost-effective energy savings approved by the
6Commission that is greater than or less than the following
7cumulative persisting annual savings values attributable to
8voltage optimization for the applicable year:
9        (1) 0.0% of cumulative persisting annual savings for
10    the year ending December 31, 2018;
11        (2) 0.17% of cumulative persisting annual savings for
12    the year ending December 31, 2019;
13        (3) 0.17% of cumulative persisting annual savings for
14    the year ending December 31, 2020;
15        (4) 0.33% of cumulative persisting annual savings for
16    the year ending December 31, 2021;
17        (5) 0.5% of cumulative persisting annual savings for
18    the year ending December 31, 2022;
19        (6) 0.67% of cumulative persisting annual savings for
20    the year ending December 31, 2023;
21        (7) 0.83% of cumulative persisting annual savings for
22    the year ending December 31, 2024; and
23        (8) 1.0% of cumulative persisting annual savings for
24    the year ending December 31, 2025.
25    (b-25) In the event an electric utility jointly offers an
26energy efficiency measure or program with a gas utility under

 

 

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1plans approved under this Section and Section 8-104 of this
2Act, the electric utility may continue offering the program,
3including the gas energy efficiency measures, in the event the
4gas utility discontinues funding the program. In that event,
5the energy savings value associated with such other fuels shall
6be converted to electric energy savings on an equivalent Btu
7basis for the premises. However, the electric utility shall
8prioritize programs for low-income residential customers to
9the extent practicable. An electric utility may recover the
10costs of offering the gas energy efficiency measures under this
11subsection (b-25).
12    An electric utility subject to this Section that serves
13less than 3,000,000 retail customers but more than 500,000
14retail customers in this State and that is affiliated with a
15gas utility that is subject to Section 8-104 of this Act may
16count the kilowatt-hour equivalent of all natural gas savings
17in excess of the gas utility's Commission-approved natural gas
18energy savings goals under that Section. Such electric utility
19may recover the costs of offering any dual fuel energy
20efficiency measures under this subsection (b-25).
21    For those energy efficiency measures or programs that save
22both electricity and other fuels but are not jointly offered
23with a gas utility under plans approved under this Section and
24Section 8-104 or not offered with an affiliated gas utility
25under paragraph (6) of subsection (f) of Section 8-104 of this
26Act, the electric utility may count savings of fuels other than

 

 

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1electricity toward the achievement of its annual savings goal,
2and the energy savings value associated with such other fuels
3shall be converted to electric energy savings on an equivalent
4Btu basis at the premises.
5    In no event shall more than 30% of each year's applicable
6annual incremental goal as defined in paragraph (7) of
7subsection (g) of this Section be met through savings of fuels
8other than electricity.
9    (c) Electric utilities shall be responsible for overseeing
10the design, development, and filing of energy efficiency plans
11with the Commission and may, as part of that implementation,
12outsource various aspects of program development and
13implementation. A minimum of 10%, for electric utilities that
14serve more than 3,000,000 retail customers in the State, and a
15minimum of 7%, for electric utilities that serve less than
163,000,000 retail customers more than 500,000 retail customers
17in the State, of the utility's entire portfolio funding level
18for a given year shall be used to procure cost-effective energy
19efficiency measures from units of local government, municipal
20corporations, school districts, public housing, and community
21college districts, provided that a minimum percentage of
22available funds shall be used to procure energy efficiency from
23public housing, which percentage shall be equal to public
24housing's share of public building energy consumption.
25    The utilities shall also implement energy efficiency
26measures targeted at low-income households, which, for

 

 

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1purposes of this Section, shall be defined as households at or
2below 80% of area median income, and expenditures to implement
3the measures shall be no less than $50,000,000 per year for
4electric utilities that serve more than 3,000,000 retail
5customers in the State and no less than $16,700,000 per year
6for electric utilities that serve less than 3,000,000 retail
7customers but more than 500,000 retail customers in the State.
8For the years commencing on January 1, 2018 and January 1,
92019, the energy savings attributable to such programs shall
10not be less than 29,239,766 kilowatt-hours per year for
11electric utilities that serve more than 3,000,000 retail
12customers in the State and not be less than 9,766,081
13kilowatt-hours per year for electric utilities that serve less
14than 3,000,000 retail customers but more than 500,000 retail
15customers in the State. For every 2-year period thereafter, the
16utility shall submit an informational filing to the Commission
1790 days prior to the beginning of the 2-year period that
18calculates the (i) cost per kilowatt-hour of energy savings to
19be achieved and (ii) the resulting incremental annual energy
20savings to be achieved each year, under the low-income programs
21during the applicable 2-year period.
22    Each electric utility shall assess opportunities to
23implement cost-effective energy efficiency measures and
24programs through a public housing authority or authorities
25located in its service territory. If such opportunities are
26identified, the utility shall propose such measures and

 

 

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1programs to address the opportunities. Expenditures to address
2such opportunities shall be credited toward the minimum
3procurement and expenditure requirements set forth in this
4subsection (c).
5    Implementation of energy efficiency measures and programs
6targeted at low-income households should be contracted, when it
7is practicable, to independent third parties that have
8demonstrated capabilities to serve such households, with a
9preference for not-for-profit entities and government agencies
10that have existing relationships with or experience serving
11low-income communities in the State.
12    Each electric utility shall develop and implement
13reporting procedures that address and assist in determining the
14amount of energy savings that can be applied to the low-income
15procurement and expenditure requirements set forth in this
16subsection (c).
17    The electric utilities shall also convene a low-income
18energy efficiency advisory committee to assist in the design
19and evaluation of the low-income energy efficiency programs.
20The committee shall be comprised of the electric utilities
21subject to the requirements of this Section, the gas utilities
22subject to the requirements of Section 8-104 of this Act, the
23utilities' low-income energy efficiency implementation
24contractors, and representatives of community-based
25organizations.
26    (d) A utility providing approved energy efficiency

 

 

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1measures and, if applicable, demand-response measures in the
2State shall be permitted to recover costs of those measures as
3follows, provided that nothing in this subsection (d) permits
4the double recovery of such costs from customers:
5        (1) The utility may recover its costs through an
6    automatic adjustment clause tariff filed with and approved
7    by the Commission. The tariff shall be established outside
8    the context of a general rate case. Each year the
9    Commission shall initiate a review to reconcile any amounts
10    collected with the actual costs and to determine the
11    required adjustment to the annual tariff factor to match
12    annual expenditures.
13        (2) A utility may recover its costs through an energy
14    efficiency formula rate approved by the Commission under a
15    filing under subsections (f) and (g) of this Section, which
16    shall specify the cost components that form the basis of
17    the rate charged to customers with sufficient specificity
18    to operate in a standardized manner and be updated annually
19    with transparent information that reflects the utility's
20    actual costs to be recovered during the applicable rate
21    year, which is the period beginning with the first billing
22    day of January and extending through the last billing day
23    of the following December. The energy efficiency formula
24    rate shall be implemented through a tariff filed with the
25    Commission under subsections (f) and (g) of this Section
26    that is consistent with the provisions of this paragraph

 

 

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1    (2) and that shall be applicable to all delivery services
2    customers. The Commission shall conduct an investigation
3    of the tariff in a manner consistent with the provisions of
4    this paragraph (2), subsections (f) and (g) of this
5    Section, and the provisions of Article IX of this Act to
6    the extent they do not conflict with this paragraph (2).
7    The energy efficiency formula rate approved by the
8    Commission shall remain in effect at the discretion of the
9    utility and shall do the following:
10            (A) Provide for the recovery of the utility's
11        actual costs incurred under this Section that are
12        prudently incurred and reasonable in amount consistent
13        with Commission practice and law. The sole fact that a
14        cost differs from that incurred in a prior calendar
15        year or that an investment is different from that made
16        in a prior calendar year shall not imply the imprudence
17        or unreasonableness of that cost or investment.
18            (B) Reflect the utility's actual year-end capital
19        structure for the applicable calendar year, excluding
20        goodwill, subject to a determination of prudence and
21        reasonableness consistent with Commission practice and
22        law.
23            (C) Include a cost of equity, which shall be
24        calculated as the sum of the following:
25                (i) the average for the applicable calendar
26            year of the monthly average yields of 30-year U.S.

 

 

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1            Treasury bonds published by the Board of Governors
2            of the Federal Reserve System in its weekly H.15
3            Statistical Release or successor publication; and
4                (ii) 580 basis points.
5            At such time as the Board of Governors of the
6        Federal Reserve System ceases to include the monthly
7        average yields of 30-year U.S. Treasury bonds in its
8        weekly H.15 Statistical Release or successor
9        publication, the monthly average yields of the U.S.
10        Treasury bonds then having the longest duration
11        published by the Board of Governors in its weekly H.15
12        Statistical Release or successor publication shall
13        instead be used for purposes of this paragraph (2).
14            (D) Permit and set forth protocols, subject to a
15        determination of prudence and reasonableness
16        consistent with Commission practice and law, for the
17        following:
18                (i) recovery of incentive compensation expense
19            that is based on the achievement of operational
20            metrics, including metrics related to budget
21            controls, outage duration and frequency, safety,
22            customer service, efficiency and productivity, and
23            environmental compliance; however, this protocol
24            shall not apply if such expense related to costs
25            incurred under this Section is recovered under
26            Article IX or Section 16-108.5 of this Act;

 

 

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1            incentive compensation expense that is based on
2            net income or an affiliate's earnings per share
3            shall not be recoverable under the energy
4            efficiency formula rate;
5                (ii) recovery of pension and other
6            post-employment benefits expense, provided that
7            such costs are supported by an actuarial study;
8            however, this protocol shall not apply if such
9            expense related to costs incurred under this
10            Section is recovered under Article IX or Section
11            16-108.5 of this Act;
12                (iii) recovery of existing regulatory assets
13            over the periods previously authorized by the
14            Commission;
15                (iv) as described in subsection (e),
16            amortization of costs incurred under this Section;
17            and
18                (v) projected, weather normalized billing
19            determinants for the applicable rate year.
20            (E) Provide for an annual reconciliation, as
21        described in paragraph (3) of this subsection (d), less
22        any deferred taxes related to the reconciliation, with
23        interest at an annual rate of return equal to the
24        utility's weighted average cost of capital, including
25        a revenue conversion factor calculated to recover or
26        refund all additional income taxes that may be payable

 

 

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1        or receivable as a result of that return, of the energy
2        efficiency revenue requirement reflected in rates for
3        each calendar year, beginning with the calendar year in
4        which the utility files its energy efficiency formula
5        rate tariff under this paragraph (2), with what the
6        revenue requirement would have been had the actual cost
7        information for the applicable calendar year been
8        available at the filing date.
9        The utility shall file, together with its tariff, the
10    projected costs to be incurred by the utility during the
11    rate year under the utility's multi-year plan approved
12    under subsections (f) and (g) of this Section, including,
13    but not limited to, the projected capital investment costs
14    and projected regulatory asset balances with
15    correspondingly updated depreciation and amortization
16    reserves and expense, that shall populate the energy
17    efficiency formula rate and set the initial rates under the
18    formula.
19        The Commission shall review the proposed tariff in
20    conjunction with its review of a proposed multi-year plan,
21    as specified in paragraph (5) of subsection (g) of this
22    Section. The review shall be based on the same evidentiary
23    standards, including, but not limited to, those concerning
24    the prudence and reasonableness of the costs incurred by
25    the utility, the Commission applies in a hearing to review
26    a filing for a general increase in rates under Article IX

 

 

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1    of this Act. The initial rates shall take effect beginning
2    with the January monthly billing period following the
3    Commission's approval.
4        The tariff's rate design and cost allocation across
5    customer classes shall be consistent with the utility's
6    automatic adjustment clause tariff in effect on the
7    effective date of this amendatory Act of the 99th General
8    Assembly; however, the Commission may revise the tariff's
9    rate design and cost allocation in subsequent proceedings
10    under paragraph (3) of this subsection (d).
11        If the energy efficiency formula rate is terminated,
12    the then current rates shall remain in effect until such
13    time as the energy efficiency costs are incorporated into
14    new rates that are set under this subsection (d) or Article
15    IX of this Act, subject to retroactive rate adjustment,
16    with interest, to reconcile rates charged with actual
17    costs.
18        (3) The provisions of this paragraph (3) shall only
19    apply to an electric utility that has elected to file an
20    energy efficiency formula rate under paragraph (2) of this
21    subsection (d). Subsequent to the Commission's issuance of
22    an order approving the utility's energy efficiency formula
23    rate structure and protocols, and initial rates under
24    paragraph (2) of this subsection (d), the utility shall
25    file, on or before June 1 of each year, with the Chief
26    Clerk of the Commission its updated cost inputs to the

 

 

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1    energy efficiency formula rate for the applicable rate year
2    and the corresponding new charges, as well as the
3    information described in paragraph (9) of subsection (g) of
4    this Section. Each such filing shall conform to the
5    following requirements and include the following
6    information:
7            (A) The inputs to the energy efficiency formula
8        rate for the applicable rate year shall be based on the
9        projected costs to be incurred by the utility during
10        the rate year under the utility's multi-year plan
11        approved under subsections (f) and (g) of this Section,
12        including, but not limited to, projected capital
13        investment costs and projected regulatory asset
14        balances with correspondingly updated depreciation and
15        amortization reserves and expense. The filing shall
16        also include a reconciliation of the energy efficiency
17        revenue requirement that was in effect for the prior
18        rate year (as set by the cost inputs for the prior rate
19        year) with the actual revenue requirement for the prior
20        rate year (determined using a year-end rate base) that
21        uses amounts reflected in the applicable FERC Form 1
22        that reports the actual costs for the prior rate year.
23        Any over-collection or under-collection indicated by
24        such reconciliation shall be reflected as a credit
25        against, or recovered as an additional charge to,
26        respectively, with interest calculated at a rate equal

 

 

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1        to the utility's weighted average cost of capital
2        approved by the Commission for the prior rate year, the
3        charges for the applicable rate year. Such
4        over-collection or under-collection shall be adjusted
5        to remove any deferred taxes related to the
6        reconciliation, for purposes of calculating interest
7        at an annual rate of return equal to the utility's
8        weighted average cost of capital approved by the
9        Commission for the prior rate year, including a revenue
10        conversion factor calculated to recover or refund all
11        additional income taxes that may be payable or
12        receivable as a result of that return. Each
13        reconciliation shall be certified by the participating
14        utility in the same manner that FERC Form 1 is
15        certified. The filing shall also include the charge or
16        credit, if any, resulting from the calculation
17        required by subparagraph (E) of paragraph (2) of this
18        subsection (d).
19            Notwithstanding any other provision of law to the
20        contrary, the intent of the reconciliation is to
21        ultimately reconcile both the revenue requirement
22        reflected in rates for each calendar year, beginning
23        with the calendar year in which the utility files its
24        energy efficiency formula rate tariff under paragraph
25        (2) of this subsection (d), with what the revenue
26        requirement determined using a year-end rate base for

 

 

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1        the applicable calendar year would have been had the
2        actual cost information for the applicable calendar
3        year been available at the filing date.
4            For purposes of this Section, "FERC Form 1" means
5        the Annual Report of Major Electric Utilities,
6        Licensees and Others that electric utilities are
7        required to file with the Federal Energy Regulatory
8        Commission under the Federal Power Act, Sections 3,
9        4(a), 304 and 209, modified as necessary to be
10        consistent with 83 Ill. Admin. Code Part 415 as of May
11        1, 2011. Nothing in this Section is intended to allow
12        costs that are not otherwise recoverable to be
13        recoverable by virtue of inclusion in FERC Form 1.
14            (B) The new charges shall take effect beginning on
15        the first billing day of the following January billing
16        period and remain in effect through the last billing
17        day of the next December billing period regardless of
18        whether the Commission enters upon a hearing under this
19        paragraph (3).
20            (C) The filing shall include relevant and
21        necessary data and documentation for the applicable
22        rate year. Normalization adjustments shall not be
23        required.
24        Within 45 days after the utility files its annual
25    update of cost inputs to the energy efficiency formula
26    rate, the Commission shall with reasonable notice,

 

 

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1    initiate a proceeding concerning whether the projected
2    costs to be incurred by the utility and recovered during
3    the applicable rate year, and that are reflected in the
4    inputs to the energy efficiency formula rate, are
5    consistent with the utility's approved multi-year plan
6    under subsections (f) and (g) of this Section and whether
7    the costs incurred by the utility during the prior rate
8    year were prudent and reasonable. The Commission shall also
9    have the authority to investigate the information and data
10    described in paragraph (9) of subsection (g) of this
11    Section, including the proposed adjustment to the
12    utility's return on equity component of its weighted
13    average cost of capital. During the course of the
14    proceeding, each objection shall be stated with
15    particularity and evidence provided in support thereof,
16    after which the utility shall have the opportunity to rebut
17    the evidence. Discovery shall be allowed consistent with
18    the Commission's Rules of Practice, which Rules of Practice
19    shall be enforced by the Commission or the assigned hearing
20    examiner. The Commission shall apply the same evidentiary
21    standards, including, but not limited to, those concerning
22    the prudence and reasonableness of the costs incurred by
23    the utility, during the proceeding as it would apply in a
24    proceeding to review a filing for a general increase in
25    rates under Article IX of this Act. The Commission shall
26    not, however, have the authority in a proceeding under this

 

 

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1    paragraph (3) to consider or order any changes to the
2    structure or protocols of the energy efficiency formula
3    rate approved under paragraph (2) of this subsection (d).
4    In a proceeding under this paragraph (3), the Commission
5    shall enter its order no later than the earlier of 195 days
6    after the utility's filing of its annual update of cost
7    inputs to the energy efficiency formula rate or December
8    15. The utility's proposed return on equity calculation, as
9    described in paragraphs (7) through (9) of subsection (g)
10    of this Section, shall be deemed the final, approved
11    calculation on December 15 of the year in which it is filed
12    unless the Commission enters an order on or before December
13    15, after notice and hearing, that modifies such
14    calculation consistent with this Section. The Commission's
15    determinations of the prudence and reasonableness of the
16    costs incurred, and determination of such return on equity
17    calculation, for the applicable calendar year shall be
18    final upon entry of the Commission's order and shall not be
19    subject to reopening, reexamination, or collateral attack
20    in any other Commission proceeding, case, docket, order,
21    rule, or regulation; however, nothing in this paragraph (3)
22    shall prohibit a party from petitioning the Commission to
23    rehear or appeal to the courts the order under the
24    provisions of this Act.
25    (e) Beginning on the effective date of this amendatory Act
26of the 99th General Assembly, a utility subject to the

 

 

09900SB2814ham002- 193 -LRB099 19990 RJF 51572 a

1requirements of this Section may elect to defer, as a
2regulatory asset, the full amount of its expenditures incurred
3under this Section for each annual period, including, but not
4limited to, any expenditures incurred above the funding level
5set by subsection (f) of this Section for a given year. The
6total expenditures deferred as a regulatory asset in a given
7year shall be amortized and recovered over a period that is
8equal to the weighted average of the energy efficiency measure
9lives implemented for that year that are reflected in the
10regulatory asset. The unamortized balance shall be recognized
11as of December 31 for a given year. The utility shall also earn
12a return on the total of the unamortized balances of all of the
13energy efficiency regulatory assets, less any deferred taxes
14related to those unamortized balances, at an annual rate equal
15to the utility's weighted average cost of capital that
16includes, based on a year-end capital structure, the utility's
17actual cost of debt for the applicable calendar year and a cost
18of equity, which shall be calculated as the sum of the (i) the
19average for the applicable calendar year of the monthly average
20yields of 30-year U.S. Treasury bonds published by the Board of
21Governors of the Federal Reserve System in its weekly H.15
22Statistical Release or successor publication; and (ii) 580
23basis points, including a revenue conversion factor calculated
24to recover or refund all additional income taxes that may be
25payable or receivable as a result of that return. Capital
26investment costs, including, but not limited to, capital

 

 

09900SB2814ham002- 194 -LRB099 19990 RJF 51572 a

1investment costs associated with voltage optimization measures
2that are described in subsection (b-20) of this Section, shall
3be depreciated and recovered over their useful lives consistent
4with generally accepted accounting principles. The weighted
5average cost of capital shall be applied to the capital
6investment cost balance, less any accumulated depreciation and
7accumulated deferred income taxes, as of December 31 for a
8given year.
9    When an electric utility creates a regulatory asset under
10the provisions of this Section, the costs are recovered over a
11period during which customers also receive a benefit which is
12in the public interest. Accordingly, it is the intent of the
13General Assembly that an electric utility that elects to create
14a regulatory asset under the provisions of this Section shall
15recover all of the associated costs as set forth in this
16Section. After the Commission has approved the prudence and
17reasonableness of the costs that comprise the regulatory asset,
18the electric utility shall be permitted to recover all such
19costs, and the value and recoverability through rates of the
20associated regulatory asset shall not be limited, altered,
21impaired, or reduced.
22    (f) Beginning in 2017, each electric utility shall file an
23energy efficiency plan with the Commission to meet the energy
24efficiency standards for the next applicable multi-year period
25beginning January 1 of the year following the filing, according
26to the schedule set forth in paragraphs (1) th