Public Act 101-0113
 
SB1529 EnrolledLRB101 08496 JRG 53573 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Power Agency Act is amended by
changing Section 1-75 as follows:
 
    (20 ILCS 3855/1-75)
    Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and
responsibilities:
    (a) The Planning and Procurement Bureau shall each year,
beginning in 2008, develop procurement plans and conduct
competitive procurement processes in accordance with the
requirements of Section 16-111.5 of the Public Utilities Act
for the eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least 100,000
customers in Illinois. Beginning with the delivery year
commencing on June 1, 2017, the Planning and Procurement Bureau
shall develop plans and processes for the procurement of zero
emission credits from zero emission facilities in accordance
with the requirements of subsection (d-5) of this Section. The
Planning and Procurement Bureau shall also develop procurement
plans and conduct competitive procurement processes in
accordance with the requirements of Section 16-111.5 of the
Public Utilities Act for the eligible retail customers of small
multi-jurisdictional electric utilities that (i) on December
31, 2005 served less than 100,000 customers in Illinois and
(ii) request a procurement plan for their Illinois
jurisdictional load. This Section shall not apply to a small
multi-jurisdictional utility until such time as a small
multi-jurisdictional utility requests the Agency to prepare a
procurement plan for their Illinois jurisdictional load. For
the purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
    Beginning with the plan or plans to be implemented in the
2017 delivery year, the Agency shall no longer include the
procurement of renewable energy resources in the annual
procurement plans required by this subsection (a), except as
provided in subsection (q) of Section 16-111.5 of the Public
Utilities Act, and shall instead develop a long-term renewable
resources procurement plan in accordance with subsection (c) of
this Section and Section 16-111.5 of the Public Utilities Act.
        (1) The Agency shall each year, beginning in 2008, as
    needed, issue a request for qualifications for experts or
    expert consulting firms to develop the procurement plans in
    accordance with Section 16-111.5 of the Public Utilities
    Act. In order to qualify an expert or expert consulting
    firm must have:
            (A) direct previous experience assembling
        large-scale power supply plans or portfolios for
        end-use customers;
            (B) an advanced degree in economics, mathematics,
        engineering, risk management, or a related area of
        study;
            (C) 10 years of experience in the electricity
        sector, including managing supply risk;
            (D) expertise in wholesale electricity market
        rules, including those established by the Federal
        Energy Regulatory Commission and regional transmission
        organizations;
            (E) expertise in credit protocols and familiarity
        with contract protocols;
            (F) adequate resources to perform and fulfill the
        required functions and responsibilities; and
            (G) the absence of a conflict of interest and
        inappropriate bias for or against potential bidders or
        the affected electric utilities.
        (2) The Agency shall each year, as needed, issue a
    request for qualifications for a procurement administrator
    to conduct the competitive procurement processes in
    accordance with Section 16-111.5 of the Public Utilities
    Act. In order to qualify an expert or expert consulting
    firm must have:
            (A) direct previous experience administering a
        large-scale competitive procurement process;
            (B) an advanced degree in economics, mathematics,
        engineering, or a related area of study;
            (C) 10 years of experience in the electricity
        sector, including risk management experience;
            (D) expertise in wholesale electricity market
        rules, including those established by the Federal
        Energy Regulatory Commission and regional transmission
        organizations;
            (E) expertise in credit and contract protocols;
            (F) adequate resources to perform and fulfill the
        required functions and responsibilities; and
            (G) the absence of a conflict of interest and
        inappropriate bias for or against potential bidders or
        the affected electric utilities.
        (3) The Agency shall provide affected utilities and
    other interested parties with the lists of qualified
    experts or expert consulting firms identified through the
    request for qualifications processes that are under
    consideration to develop the procurement plans and to serve
    as the procurement administrator. The Agency shall also
    provide each qualified expert's or expert consulting
    firm's response to the request for qualifications. All
    information provided under this subparagraph shall also be
    provided to the Commission. The Agency may provide by rule
    for fees associated with supplying the information to
    utilities and other interested parties. These parties
    shall, within 5 business days, notify the Agency in writing
    if they object to any experts or expert consulting firms on
    the lists. Objections shall be based on:
            (A) failure to satisfy qualification criteria;
            (B) identification of a conflict of interest; or
            (C) evidence of inappropriate bias for or against
        potential bidders or the affected utilities.
        The Agency shall remove experts or expert consulting
    firms from the lists within 10 days if there is a
    reasonable basis for an objection and provide the updated
    lists to the affected utilities and other interested
    parties. If the Agency fails to remove an expert or expert
    consulting firm from a list, an objecting party may seek
    review by the Commission within 5 days thereafter by filing
    a petition, and the Commission shall render a ruling on the
    petition within 10 days. There is no right of appeal of the
    Commission's ruling.
        (4) The Agency shall issue requests for proposals to
    the qualified experts or expert consulting firms to develop
    a procurement plan for the affected utilities and to serve
    as procurement administrator.
        (5) The Agency shall select an expert or expert
    consulting firm to develop procurement plans based on the
    proposals submitted and shall award contracts of up to 5
    years to those selected.
        (6) The Agency shall select an expert or expert
    consulting firm, with approval of the Commission, to serve
    as procurement administrator based on the proposals
    submitted. If the Commission rejects, within 5 days, the
    Agency's selection, the Agency shall submit another
    recommendation within 3 days based on the proposals
    submitted. The Agency shall award a 5-year contract to the
    expert or expert consulting firm so selected with
    Commission approval.
    (b) The experts or expert consulting firms retained by the
Agency shall, as appropriate, prepare procurement plans, and
conduct a competitive procurement process as prescribed in
Section 16-111.5 of the Public Utilities Act, to ensure
adequate, reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability, for
eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least 100,000
customers in the State of Illinois, and for eligible Illinois
retail customers of small multi-jurisdictional electric
utilities that (i) on December 31, 2005 served less than
100,000 customers in Illinois and (ii) request a procurement
plan for their Illinois jurisdictional load.
    (c) Renewable portfolio standard.
        (1)(A) The Agency shall develop a long-term renewable
    resources procurement plan that shall include procurement
    programs and competitive procurement events necessary to
    meet the goals set forth in this subsection (c). The
    initial long-term renewable resources procurement plan
    shall be released for comment no later than 160 days after
    June 1, 2017 (the effective date of Public Act 99-906). The
    Agency shall review, and may revise on an expedited basis,
    the long-term renewable resources procurement plan at
    least every 2 years, which shall be conducted in
    conjunction with the procurement plan under Section
    16-111.5 of the Public Utilities Act to the extent
    practicable to minimize administrative expense. The
    long-term renewable resources procurement plans shall be
    subject to review and approval by the Commission under
    Section 16-111.5 of the Public Utilities Act.
        (B) Subject to subparagraph (F) of this paragraph (1),
    the long-term renewable resources procurement plan shall
    include the goals for procurement of renewable energy
    credits to meet at least the following overall percentages:
    13% by the 2017 delivery year; increasing by at least 1.5%
    each delivery year thereafter to at least 25% by the 2025
    delivery year; and continuing at no less than 25% for each
    delivery year thereafter. In the event of a conflict
    between these goals and the new wind and new photovoltaic
    procurement requirements described in items (i) through
    (iii) of subparagraph (C) of this paragraph (1), the
    long-term plan shall prioritize compliance with the new
    wind and new photovoltaic procurement requirements
    described in items (i) through (iii) of subparagraph (C) of
    this paragraph (1) over the annual percentage targets
    described in this subparagraph (B).
        For the delivery year beginning June 1, 2017, the
    procurement plan shall include cost-effective renewable
    energy resources equal to at least 13% of each utility's
    load for eligible retail customers and 13% of the
    applicable portion of each utility's load for retail
    customers who are not eligible retail customers, which
    applicable portion shall equal 50% of the utility's load
    for retail customers who are not eligible retail customers
    on February 28, 2017.
        For the delivery year beginning June 1, 2018, the
    procurement plan shall include cost-effective renewable
    energy resources equal to at least 14.5% of each utility's
    load for eligible retail customers and 14.5% of the
    applicable portion of each utility's load for retail
    customers who are not eligible retail customers, which
    applicable portion shall equal 75% of the utility's load
    for retail customers who are not eligible retail customers
    on February 28, 2017.
        For the delivery year beginning June 1, 2019, and for
    each year thereafter, the procurement plans shall include
    cost-effective renewable energy resources equal to a
    minimum percentage of each utility's load for all retail
    customers as follows: 16% by June 1, 2019; increasing by
    1.5% each year thereafter to 25% by June 1, 2025; and 25%
    by June 1, 2026 and each year thereafter.
        For each delivery year, the Agency shall first
    recognize each utility's obligations for that delivery
    year under existing contracts. Any renewable energy
    credits under existing contracts, including renewable
    energy credits as part of renewable energy resources, shall
    be used to meet the goals set forth in this subsection (c)
    for the delivery year.
        (C) Of the renewable energy credits procured under this
    subsection (c), at least 75% shall come from wind and
    photovoltaic projects. The long-term renewable resources
    procurement plan described in subparagraph (A) of this
    paragraph (1) shall include the procurement of renewable
    energy credits in amounts equal to at least the following:
            (i) By the end of the 2020 delivery year:
                At least 2,000,000 renewable energy credits
            for each delivery year shall come from new wind
            projects; and
                At least 2,000,000 renewable energy credits
            for each delivery year shall come from new
            photovoltaic projects; of that amount, to the
            extent possible, the Agency shall procure: at
            least 50% from solar photovoltaic projects using
            the program outlined in subparagraph (K) of this
            paragraph (1) from distributed renewable energy
            generation devices or community renewable
            generation projects; at least 40% from
            utility-scale solar projects; at least 2% from
            brownfield site photovoltaic projects that are not
            community renewable generation projects; and the
            remainder shall be determined through the
            long-term planning process described in
            subparagraph (A) of this paragraph (1).
            (ii) By the end of the 2025 delivery year:
                At least 3,000,000 renewable energy credits
            for each delivery year shall come from new wind
            projects; and
                At least 3,000,000 renewable energy credits
            for each delivery year shall come from new
            photovoltaic projects; of that amount, to the
            extent possible, the Agency shall procure: at
            least 50% from solar photovoltaic projects using
            the program outlined in subparagraph (K) of this
            paragraph (1) from distributed renewable energy
            devices or community renewable generation
            projects; at least 40% from utility-scale solar
            projects; at least 2% from brownfield site
            photovoltaic projects that are not community
            renewable generation projects; and the remainder
            shall be determined through the long-term planning
            process described in subparagraph (A) of this
            paragraph (1).
            (iii) By the end of the 2030 delivery year:
                At least 4,000,000 renewable energy credits
            for each delivery year shall come from new wind
            projects; and
                At least 4,000,000 renewable energy credits
            for each delivery year shall come from new
            photovoltaic projects; of that amount, to the
            extent possible, the Agency shall procure: at
            least 50% from solar photovoltaic projects using
            the program outlined in subparagraph (K) of this
            paragraph (1) from distributed renewable energy
            devices or community renewable generation
            projects; at least 40% from utility-scale solar
            projects; at least 2% from brownfield site
            photovoltaic projects that are not community
            renewable generation projects; and the remainder
            shall be determined through the long-term planning
            process described in subparagraph (A) of this
            paragraph (1).
            For purposes of this Section:
                "New wind projects" means wind renewable
            energy facilities that are energized after June 1,
            2017 for the delivery year commencing June 1, 2017
            or within 3 years after the date the Commission
            approves contracts for subsequent delivery years.
                "New photovoltaic projects" means photovoltaic
            renewable energy facilities that are energized
            after June 1, 2017. Photovoltaic projects
            developed under Section 1-56 of this Act shall not
            apply towards the new photovoltaic project
            requirements in this subparagraph (C).
        (D) Renewable energy credits shall be cost effective.
    For purposes of this subsection (c), "cost effective" means
    that the costs of procuring renewable energy resources do
    not cause the limit stated in subparagraph (E) of this
    paragraph (1) to be exceeded and, for renewable energy
    credits procured through a competitive procurement event,
    do not exceed benchmarks based on market prices for like
    products in the region. For purposes of this subsection
    (c), "like products" means contracts for renewable energy
    credits from the same or substantially similar technology,
    same or substantially similar vintage (new or existing),
    the same or substantially similar quantity, and the same or
    substantially similar contract length and structure.
    Benchmarks shall be developed by the procurement
    administrator, in consultation with the Commission staff,
    Agency staff, and the procurement monitor and shall be
    subject to Commission review and approval. If price
    benchmarks for like products in the region are not
    available, the procurement administrator shall establish
    price benchmarks based on publicly available data on
    regional technology costs and expected current and future
    regional energy prices. The benchmarks in this Section
    shall not be used to curtail or otherwise reduce
    contractual obligations entered into by or through the
    Agency prior to June 1, 2017 (the effective date of Public
    Act 99-906).
        (E) For purposes of this subsection (c), the required
    procurement of cost-effective renewable energy resources
    for a particular year commencing prior to June 1, 2017
    shall be measured as a percentage of the actual amount of
    electricity (megawatt-hours) supplied by the electric
    utility to eligible retail customers in the delivery year
    ending immediately prior to the procurement, and, for
    delivery years commencing on and after June 1, 2017, the
    required procurement of cost-effective renewable energy
    resources for a particular year shall be measured as a
    percentage of the actual amount of electricity
    (megawatt-hours) delivered by the electric utility in the
    delivery year ending immediately prior to the procurement,
    to all retail customers in its service territory. For
    purposes of this subsection (c), the amount paid per
    kilowatthour means the total amount paid for electric
    service expressed on a per kilowatthour basis. For purposes
    of this subsection (c), the total amount paid for electric
    service includes without limitation amounts paid for
    supply, transmission, distribution, surcharges, and add-on
    taxes.
        Notwithstanding the requirements of this subsection
    (c), the total of renewable energy resources procured under
    the procurement plan for any single year shall be subject
    to the limitations of this subparagraph (E). Such
    procurement shall be reduced for all retail customers based
    on the amount necessary to limit the annual estimated
    average net increase due to the costs of these resources
    included in the amounts paid by eligible retail customers
    in connection with electric service to no more than the
    greater of 2.015% of the amount paid per kilowatthour by
    those customers during the year ending May 31, 2007 or the
    incremental amount per kilowatthour paid for these
    resources in 2011. To arrive at a maximum dollar amount of
    renewable energy resources to be procured for the
    particular delivery year, the resulting per kilowatthour
    amount shall be applied to the actual amount of
    kilowatthours of electricity delivered, or applicable
    portion of such amount as specified in paragraph (1) of
    this subsection (c), as applicable, by the electric utility
    in the delivery year immediately prior to the procurement
    to all retail customers in its service territory. The
    calculations required by this subparagraph (E) shall be
    made only once for each delivery year at the time that the
    renewable energy resources are procured. Once the
    determination as to the amount of renewable energy
    resources to procure is made based on the calculations set
    forth in this subparagraph (E) and the contracts procuring
    those amounts are executed, no subsequent rate impact
    determinations shall be made and no adjustments to those
    contract amounts shall be allowed. All costs incurred under
    such contracts shall be fully recoverable by the electric
    utility as provided in this Section.
        (F) If the limitation on the amount of renewable energy
    resources procured in subparagraph (E) of this paragraph
    (1) prevents the Agency from meeting all of the goals in
    this subsection (c), the Agency's long-term plan shall
    prioritize compliance with the requirements of this
    subsection (c) regarding renewable energy credits in the
    following order:
            (i) renewable energy credits under existing
        contractual obligations;
            (i-5) funding for the Illinois Solar for All
        Program, as described in subparagraph (O) of this
        paragraph (1);
            (ii) renewable energy credits necessary to comply
        with the new wind and new photovoltaic procurement
        requirements described in items (i) through (iii) of
        subparagraph (C) of this paragraph (1); and
            (iii) renewable energy credits necessary to meet
        the remaining requirements of this subsection (c).
        (G) The following provisions shall apply to the
    Agency's procurement of renewable energy credits under
    this subsection (c):
            (i) Notwithstanding whether a long-term renewable
        resources procurement plan has been approved, the
        Agency shall conduct an initial forward procurement
        for renewable energy credits from new utility-scale
        wind projects within 160 days after June 1, 2017 (the
        effective date of Public Act 99-906). For the purposes
        of this initial forward procurement, the Agency shall
        solicit 15-year contracts for delivery of 1,000,000
        renewable energy credits delivered annually from new
        utility-scale wind projects to begin delivery on June
        1, 2019, if available, but not later than June 1, 2021,
        unless the project has delays in the establishment of
        an operating interconnection with the applicable
        transmission or distribution system as a result of the
        actions or inactions of the transmission or
        distribution provider, or other causes for force
        majeure as outlined in the procurement contract, in
        which case, not later than June 1, 2022. Payments to
        suppliers of renewable energy credits shall commence
        upon delivery. Renewable energy credits procured under
        this initial procurement shall be included in the
        Agency's long-term plan and shall apply to all
        renewable energy goals in this subsection (c).
            (ii) Notwithstanding whether a long-term renewable
        resources procurement plan has been approved, the
        Agency shall conduct an initial forward procurement
        for renewable energy credits from new utility-scale
        solar projects and brownfield site photovoltaic
        projects within one year after June 1, 2017 (the
        effective date of Public Act 99-906). For the purposes
        of this initial forward procurement, the Agency shall
        solicit 15-year contracts for delivery of 1,000,000
        renewable energy credits delivered annually from new
        utility-scale solar projects and brownfield site
        photovoltaic projects to begin delivery on June 1,
        2019, if available, but not later than June 1, 2021,
        unless the project has delays in the establishment of
        an operating interconnection with the applicable
        transmission or distribution system as a result of the
        actions or inactions of the transmission or
        distribution provider, or other causes for force
        majeure as outlined in the procurement contract, in
        which case, not later than June 1, 2022. The Agency may
        structure this initial procurement in one or more
        discrete procurement events. Payments to suppliers of
        renewable energy credits shall commence upon delivery.
        Renewable energy credits procured under this initial
        procurement shall be included in the Agency's
        long-term plan and shall apply to all renewable energy
        goals in this subsection (c).
            (iii) Subsequent forward procurements for
        utility-scale wind projects shall solicit at least
        1,000,000 renewable energy credits delivered annually
        per procurement event and shall be planned, scheduled,
        and designed such that the cumulative amount of
        renewable energy credits delivered from all new wind
        projects in each delivery year shall not exceed the
        Agency's projection of the cumulative amount of
        renewable energy credits that will be delivered from
        all new photovoltaic projects, including utility-scale
        and distributed photovoltaic devices, in the same
        delivery year at the time scheduled for wind contract
        delivery.
            (iv) If, at any time after the time set for
        delivery of renewable energy credits pursuant to the
        initial procurements in items (i) and (ii) of this
        subparagraph (G), the cumulative amount of renewable
        energy credits projected to be delivered from all new
        wind projects in a given delivery year exceeds the
        cumulative amount of renewable energy credits
        projected to be delivered from all new photovoltaic
        projects in that delivery year by 200,000 or more
        renewable energy credits, then the Agency shall within
        60 days adjust the procurement programs in the
        long-term renewable resources procurement plan to
        ensure that the projected cumulative amount of
        renewable energy credits to be delivered from all new
        wind projects does not exceed the projected cumulative
        amount of renewable energy credits to be delivered from
        all new photovoltaic projects by 200,000 or more
        renewable energy credits, provided that nothing in
        this Section shall preclude the projected cumulative
        amount of renewable energy credits to be delivered from
        all new photovoltaic projects from exceeding the
        projected cumulative amount of renewable energy
        credits to be delivered from all new wind projects in
        each delivery year and provided further that nothing in
        this item (iv) shall require the curtailment of an
        executed contract. The Agency shall update, on a
        quarterly basis, its projection of the renewable
        energy credits to be delivered from all projects in
        each delivery year. Notwithstanding anything to the
        contrary, the Agency may adjust the timing of
        procurement events conducted under this subparagraph
        (G). The long-term renewable resources procurement
        plan shall set forth the process by which the
        adjustments may be made.
            (v) All procurements under this subparagraph (G)
        shall comply with the geographic requirements in
        subparagraph (I) of this paragraph (1) and shall follow
        the procurement processes and procedures described in
        this Section and Section 16-111.5 of the Public
        Utilities Act to the extent practicable, and these
        processes and procedures may be expedited to
        accommodate the schedule established by this
        subparagraph (G).
        (H) The procurement of renewable energy resources for a
    given delivery year shall be reduced as described in this
    subparagraph (H) if an alternative retail electric
    supplier meets the requirements described in this
    subparagraph (H).
            (i) Within 45 days after June 1, 2017 (the
        effective date of Public Act 99-906), an alternative
        retail electric supplier or its successor shall submit
        an informational filing to the Illinois Commerce
        Commission certifying that, as of December 31, 2015,
        the alternative retail electric supplier owned one or
        more electric generating facilities that generates
        renewable energy resources as defined in Section 1-10
        of this Act, provided that such facilities are not
        powered by wind or photovoltaics, and the facilities
        generate one renewable energy credit for each
        megawatthour of energy produced from the facility.
            The informational filing shall identify each
        facility that was eligible to satisfy the alternative
        retail electric supplier's obligations under Section
        16-115D of the Public Utilities Act as described in
        this item (i).
            (ii) For a given delivery year, the alternative
        retail electric supplier may elect to supply its retail
        customers with renewable energy credits from the
        facility or facilities described in item (i) of this
        subparagraph (H) that continue to be owned by the
        alternative retail electric supplier.
            (iii) The alternative retail electric supplier
        shall notify the Agency and the applicable utility, no
        later than February 28 of the year preceding the
        applicable delivery year or 15 days after June 1, 2017
        (the effective date of Public Act 99-906), whichever is
        later, of its election under item (ii) of this
        subparagraph (H) to supply renewable energy credits to
        retail customers of the utility. Such election shall
        identify the amount of renewable energy credits to be
        supplied by the alternative retail electric supplier
        to the utility's retail customers and the source of the
        renewable energy credits identified in the
        informational filing as described in item (i) of this
        subparagraph (H), subject to the following
        limitations:
                For the delivery year beginning June 1, 2018,
            the maximum amount of renewable energy credits to
            be supplied by an alternative retail electric
            supplier under this subparagraph (H) shall be 68%
            multiplied by 25% multiplied by 14.5% multiplied
            by the amount of metered electricity
            (megawatt-hours) delivered by the alternative
            retail electric supplier to Illinois retail
            customers during the delivery year ending May 31,
            2016.
                For delivery years beginning June 1, 2019 and
            each year thereafter, the maximum amount of
            renewable energy credits to be supplied by an
            alternative retail electric supplier under this
            subparagraph (H) shall be 68% multiplied by 50%
            multiplied by 16% multiplied by the amount of
            metered electricity (megawatt-hours) delivered by
            the alternative retail electric supplier to
            Illinois retail customers during the delivery year
            ending May 31, 2016, provided that the 16% value
            shall increase by 1.5% each delivery year
            thereafter to 25% by the delivery year beginning
            June 1, 2025, and thereafter the 25% value shall
            apply to each delivery year.
            For each delivery year, the total amount of
        renewable energy credits supplied by all alternative
        retail electric suppliers under this subparagraph (H)
        shall not exceed 9% of the Illinois target renewable
        energy credit quantity. The Illinois target renewable
        energy credit quantity for the delivery year beginning
        June 1, 2018 is 14.5% multiplied by the total amount of
        metered electricity (megawatt-hours) delivered in the
        delivery year immediately preceding that delivery
        year, provided that the 14.5% shall increase by 1.5%
        each delivery year thereafter to 25% by the delivery
        year beginning June 1, 2025, and thereafter the 25%
        value shall apply to each delivery year.
            If the requirements set forth in items (i) through
        (iii) of this subparagraph (H) are met, the charges
        that would otherwise be applicable to the retail
        customers of the alternative retail electric supplier
        under paragraph (6) of this subsection (c) for the
        applicable delivery year shall be reduced by the ratio
        of the quantity of renewable energy credits supplied by
        the alternative retail electric supplier compared to
        that supplier's target renewable energy credit
        quantity. The supplier's target renewable energy
        credit quantity for the delivery year beginning June 1,
        2018 is 14.5% multiplied by the total amount of metered
        electricity (megawatt-hours) delivered by the
        alternative retail supplier in that delivery year,
        provided that the 14.5% shall increase by 1.5% each
        delivery year thereafter to 25% by the delivery year
        beginning June 1, 2025, and thereafter the 25% value
        shall apply to each delivery year.
            On or before April 1 of each year, the Agency shall
        annually publish a report on its website that
        identifies the aggregate amount of renewable energy
        credits supplied by alternative retail electric
        suppliers under this subparagraph (H).
        (I) The Agency shall design its long-term renewable
    energy procurement plan to maximize the State's interest in
    the health, safety, and welfare of its residents, including
    but not limited to minimizing sulfur dioxide, nitrogen
    oxide, particulate matter and other pollution that
    adversely affects public health in this State, increasing
    fuel and resource diversity in this State, enhancing the
    reliability and resiliency of the electricity distribution
    system in this State, meeting goals to limit carbon dioxide
    emissions under federal or State law, and contributing to a
    cleaner and healthier environment for the citizens of this
    State. In order to further these legislative purposes,
    renewable energy credits shall be eligible to be counted
    toward the renewable energy requirements of this
    subsection (c) if they are generated from facilities
    located in this State. The Agency may qualify renewable
    energy credits from facilities located in states adjacent
    to Illinois if the generator demonstrates and the Agency
    determines that the operation of such facility or
    facilities will help promote the State's interest in the
    health, safety, and welfare of its residents based on the
    public interest criteria described above. To ensure that
    the public interest criteria are applied to the procurement
    and given full effect, the Agency's long-term procurement
    plan shall describe in detail how each public interest
    factor shall be considered and weighted for facilities
    located in states adjacent to Illinois.
        (J) In order to promote the competitive development of
    renewable energy resources in furtherance of the State's
    interest in the health, safety, and welfare of its
    residents, renewable energy credits shall not be eligible
    to be counted toward the renewable energy requirements of
    this subsection (c) if they are sourced from a generating
    unit whose costs were being recovered through rates
    regulated by this State or any other state or states on or
    after January 1, 2017. Each contract executed to purchase
    renewable energy credits under this subsection (c) shall
    provide for the contract's termination if the costs of the
    generating unit supplying the renewable energy credits
    subsequently begin to be recovered through rates regulated
    by this State or any other state or states; and each
    contract shall further provide that, in that event, the
    supplier of the credits must return 110% of all payments
    received under the contract. Amounts returned under the
    requirements of this subparagraph (J) shall be retained by
    the utility and all of these amounts shall be used for the
    procurement of additional renewable energy credits from
    new wind or new photovoltaic resources as defined in this
    subsection (c). The long-term plan shall provide that these
    renewable energy credits shall be procured in the next
    procurement event.
        Notwithstanding the limitations of this subparagraph
    (J), renewable energy credits sourced from generating
    units that are constructed, purchased, owned, or leased by
    an electric utility as part of an approved project,
    program, or pilot under Section 1-56 of this Act shall be
    eligible to be counted toward the renewable energy
    requirements of this subsection (c), regardless of how the
    costs of these units are recovered.
        (K) The long-term renewable resources procurement plan
    developed by the Agency in accordance with subparagraph (A)
    of this paragraph (1) shall include an Adjustable Block
    program for the procurement of renewable energy credits
    from new photovoltaic projects that are distributed
    renewable energy generation devices or new photovoltaic
    community renewable generation projects. The Adjustable
    Block program shall be designed to provide a transparent
    schedule of prices and quantities to enable the
    photovoltaic market to scale up and for renewable energy
    credit prices to adjust at a predictable rate over time.
    The prices set by the Adjustable Block program can be
    reflected as a set value or as the product of a formula.
        The Adjustable Block program shall include for each
    category of eligible projects: a schedule of standard block
    purchase prices to be offered; a series of steps, with
    associated nameplate capacity and purchase prices that
    adjust from step to step; and automatic opening of the next
    step as soon as the nameplate capacity and available
    purchase prices for an open step are fully committed or
    reserved. Only projects energized on or after June 1, 2017
    shall be eligible for the Adjustable Block program. For
    each block group the Agency shall determine the number of
    blocks, the amount of generation capacity in each block,
    and the purchase price for each block, provided that the
    purchase price provided and the total amount of generation
    in all blocks for all block groups shall be sufficient to
    meet the goals in this subsection (c). The Agency may
    periodically review its prior decisions establishing the
    number of blocks, the amount of generation capacity in each
    block, and the purchase price for each block, and may
    propose, on an expedited basis, changes to these previously
    set values, including but not limited to redistributing
    these amounts and the available funds as necessary and
    appropriate, subject to Commission approval as part of the
    periodic plan revision process described in Section
    16-111.5 of the Public Utilities Act. The Agency may define
    different block sizes, purchase prices, or other distinct
    terms and conditions for projects located in different
    utility service territories if the Agency deems it
    necessary to meet the goals in this subsection (c).
        The Adjustable Block program shall include at least the
    following block groups in at least the following amounts,
    which may be adjusted upon review by the Agency and
    approval by the Commission as described in this
    subparagraph (K):
            (i) At least 25% from distributed renewable energy
        generation devices with a nameplate capacity of no more
        than 10 kilowatts.
            (ii) At least 25% from distributed renewable
        energy generation devices with a nameplate capacity of
        more than 10 kilowatts and no more than 2,000
        kilowatts. The Agency may create sub-categories within
        this category to account for the differences between
        projects for small commercial customers, large
        commercial customers, and public or non-profit
        customers.
            (iii) At least 25% from photovoltaic community
        renewable generation projects.
            (iv) The remaining 25% shall be allocated as
        specified by the Agency in the long-term renewable
        resources procurement plan.
        The Adjustable Block program shall be designed to
    ensure that renewable energy credits are procured from
    photovoltaic distributed renewable energy generation
    devices and new photovoltaic community renewable energy
    generation projects in diverse locations and are not
    concentrated in a few geographic areas.
        (L) The procurement of photovoltaic renewable energy
    credits under items (i) through (iv) of subparagraph (K) of
    this paragraph (1) shall be subject to the following
    contract and payment terms:
            (i) The Agency shall procure contracts of at least
        15 years in length.
            (ii) For those renewable energy credits that
        qualify and are procured under item (i) of subparagraph
        (K) of this paragraph (1), the renewable energy credit
        purchase price shall be paid in full by the contracting
        utilities at the time that the facility producing the
        renewable energy credits is interconnected at the
        distribution system level of the utility and
        energized. The electric utility shall receive and
        retire all renewable energy credits generated by the
        project for the first 15 years of operation.
            (iii) For those renewable energy credits that
        qualify and are procured under item (ii) and (iii) of
        subparagraph (K) of this paragraph (1) and any
        additional categories of distributed generation
        included in the long-term renewable resources
        procurement plan and approved by the Commission, 20
        percent of the renewable energy credit purchase price
        shall be paid by the contracting utilities at the time
        that the facility producing the renewable energy
        credits is interconnected at the distribution system
        level of the utility and energized. The remaining
        portion shall be paid ratably over the subsequent
        4-year period. The electric utility shall receive and
        retire all renewable energy credits generated by the
        project for the first 15 years of operation.
            (iv) Each contract shall include provisions to
        ensure the delivery of the renewable energy credits for
        the full term of the contract.
            (v) The utility shall be the counterparty to the
        contracts executed under this subparagraph (L) that
        are approved by the Commission under the process
        described in Section 16-111.5 of the Public Utilities
        Act. No contract shall be executed for an amount that
        is less than one renewable energy credit per year.
            (vi) If, at any time, approved applications for the
        Adjustable Block program exceed funds collected by the
        electric utility or would cause the Agency to exceed
        the limitation described in subparagraph (E) of this
        paragraph (1) on the amount of renewable energy
        resources that may be procured, then the Agency shall
        consider future uncommitted funds to be reserved for
        these contracts on a first-come, first-served basis,
        with the delivery of renewable energy credits required
        beginning at the time that the reserved funds become
        available.
            (vii) Nothing in this Section shall require the
        utility to advance any payment or pay any amounts that
        exceed the actual amount of revenues collected by the
        utility under paragraph (6) of this subsection (c) and
        subsection (k) of Section 16-108 of the Public
        Utilities Act, and contracts executed under this
        Section shall expressly incorporate this limitation.
        (M) The Agency shall be authorized to retain one or
    more experts or expert consulting firms to develop,
    administer, implement, operate, and evaluate the
    Adjustable Block program described in subparagraph (K) of
    this paragraph (1), and the Agency shall retain the
    consultant or consultants in the same manner, to the extent
    practicable, as the Agency retains others to administer
    provisions of this Act, including, but not limited to, the
    procurement administrator. The selection of experts and
    expert consulting firms and the procurement process
    described in this subparagraph (M) are exempt from the
    requirements of Section 20-10 of the Illinois Procurement
    Code, under Section 20-10 of that Code. The Agency shall
    strive to minimize administrative expenses in the
    implementation of the Adjustable Block program.
        The Agency and its consultant or consultants shall
    monitor block activity, share program activity with
    stakeholders and conduct regularly scheduled meetings to
    discuss program activity and market conditions. If
    necessary, the Agency may make prospective administrative
    adjustments to the Adjustable Block program design, such as
    redistributing available funds or making adjustments to
    purchase prices as necessary to achieve the goals of this
    subsection (c). Program modifications to any price,
    capacity block, or other program element that do not
    deviate from the Commission's approved value by more than
    25% shall take effect immediately and are not subject to
    Commission review and approval. Program modifications to
    any price, capacity block, or other program element that
    deviate more than 25% from the Commission's approved value
    must be approved by the Commission as a long-term plan
    amendment under Section 16-111.5 of the Public Utilities
    Act. The Agency shall consider stakeholder feedback when
    making adjustments to the Adjustable Block design and shall
    notify stakeholders in advance of any planned changes.
        (N) The long-term renewable resources procurement plan
    required by this subsection (c) shall include a community
    renewable generation program. The Agency shall establish
    the terms, conditions, and program requirements for
    community renewable generation projects with a goal to
    expand renewable energy generating facility access to a
    broader group of energy consumers, to ensure robust
    participation opportunities for residential and small
    commercial customers and those who cannot install
    renewable energy on their own properties. Any plan approved
    by the Commission shall allow subscriptions to community
    renewable generation projects to be portable and
    transferable. For purposes of this subparagraph (N),
    "portable" means that subscriptions may be retained by the
    subscriber even if the subscriber relocates or changes its
    address within the same utility service territory; and
    "transferable" means that a subscriber may assign or sell
    subscriptions to another person within the same utility
    service territory.
        Electric utilities shall provide a monetary credit to a
    subscriber's subsequent bill for service for the
    proportional output of a community renewable generation
    project attributable to that subscriber as specified in
    Section 16-107.5 of the Public Utilities Act.
        The Agency shall purchase renewable energy credits
    from subscribed shares of photovoltaic community renewable
    generation projects through the Adjustable Block program
    described in subparagraph (K) of this paragraph (1) or
    through the Illinois Solar for All Program described in
    Section 1-56 of this Act. The electric utility shall
    purchase any unsubscribed energy from community renewable
    generation projects that are Qualifying Facilities ("QF")
    under the electric utility's tariff for purchasing the
    output from QFs under Public Utilities Regulatory Policies
    Act of 1978.
        The owners of and any subscribers to a community
    renewable generation project shall not be considered
    public utilities or alternative retail electricity
    suppliers under the Public Utilities Act solely as a result
    of their interest in or subscription to a community
    renewable generation project and shall not be required to
    become an alternative retail electric supplier by
    participating in a community renewable generation project
    with a public utility.
        (O) For the delivery year beginning June 1, 2018, the
    long-term renewable resources procurement plan required by
    this subsection (c) shall provide for the Agency to procure
    contracts to continue offering the Illinois Solar for All
    Program described in subsection (b) of Section 1-56 of this
    Act, and the contracts approved by the Commission shall be
    executed by the utilities that are subject to this
    subsection (c). The long-term renewable resources
    procurement plan shall allocate 5% of the funds available
    under the plan for the applicable delivery year, or
    $10,000,000 per delivery year, whichever is greater, to
    fund the programs, and the plan shall determine the amount
    of funding to be apportioned to the programs identified in
    subsection (b) of Section 1-56 of this Act; provided that
    for the delivery years beginning June 1, 2017, June 1,
    2021, and June 1, 2025, the long-term renewable resources
    procurement plan shall allocate 10% of the funds available
    under the plan for the applicable delivery year, or
    $20,000,000 per delivery year, whichever is greater, and
    $10,000,000 of such funds in such year shall be used by an
    electric utility that serves more than 3,000,000 retail
    customers in the State to implement a Commission-approved
    plan under Section 16-108.12 of the Public Utilities Act.
    In making the determinations required under this
    subparagraph (O), the Commission shall consider the
    experience and performance under the programs and any
    evaluation reports. The Commission shall also provide for
    an independent evaluation of those programs on a periodic
    basis that are funded under this subparagraph (O).
        (2) (Blank).
        (3) (Blank).
        (4) The electric utility shall retire all renewable
    energy credits used to comply with the standard.
        (5) Beginning with the 2010 delivery year and ending
    June 1, 2017, an electric utility subject to this
    subsection (c) shall apply the lesser of the maximum
    alternative compliance payment rate or the most recent
    estimated alternative compliance payment rate for its
    service territory for the corresponding compliance period,
    established pursuant to subsection (d) of Section 16-115D
    of the Public Utilities Act to its retail customers that
    take service pursuant to the electric utility's hourly
    pricing tariff or tariffs. The electric utility shall
    retain all amounts collected as a result of the application
    of the alternative compliance payment rate or rates to such
    customers, and, beginning in 2011, the utility shall
    include in the information provided under item (1) of
    subsection (d) of Section 16-111.5 of the Public Utilities
    Act the amounts collected under the alternative compliance
    payment rate or rates for the prior year ending May 31.
    Notwithstanding any limitation on the procurement of
    renewable energy resources imposed by item (2) of this
    subsection (c), the Agency shall increase its spending on
    the purchase of renewable energy resources to be procured
    by the electric utility for the next plan year by an amount
    equal to the amounts collected by the utility under the
    alternative compliance payment rate or rates in the prior
    year ending May 31.
        (6) The electric utility shall be entitled to recover
    all of its costs associated with the procurement of
    renewable energy credits under plans approved under this
    Section and Section 16-111.5 of the Public Utilities Act.
    These costs shall include associated reasonable expenses
    for implementing the procurement programs, including, but
    not limited to, the costs of administering and evaluating
    the Adjustable Block program, through an automatic
    adjustment clause tariff in accordance with subsection (k)
    of Section 16-108 of the Public Utilities Act.
        (7) Renewable energy credits procured from new
    photovoltaic projects or new distributed renewable energy
    generation devices under this Section after June 1, 2017
    (the effective date of Public Act 99-906) must be procured
    from devices installed by a qualified person in compliance
    with the requirements of Section 16-128A of the Public
    Utilities Act and any rules or regulations adopted
    thereunder.
        In meeting the renewable energy requirements of this
    subsection (c), to the extent feasible and consistent with
    State and federal law, the renewable energy credit
    procurements, Adjustable Block solar program, and
    community renewable generation program shall provide
    employment opportunities for all segments of the
    population and workforce, including minority-owned and
    female-owned business enterprises, and shall not,
    consistent with State and federal law, discriminate based
    on race or socioeconomic status.
    (d) Clean coal portfolio standard.
        (1) The procurement plans shall include electricity
    generated using clean coal. Each utility shall enter into
    one or more sourcing agreements with the initial clean coal
    facility, as provided in paragraph (3) of this subsection
    (d), covering electricity generated by the initial clean
    coal facility representing at least 5% of each utility's
    total supply to serve the load of eligible retail customers
    in 2015 and each year thereafter, as described in paragraph
    (3) of this subsection (d), subject to the limits specified
    in paragraph (2) of this subsection (d). It is the goal of
    the State that by January 1, 2025, 25% of the electricity
    used in the State shall be generated by cost-effective
    clean coal facilities. For purposes of this subsection (d),
    "cost-effective" means that the expenditures pursuant to
    such sourcing agreements do not cause the limit stated in
    paragraph (2) of this subsection (d) to be exceeded and do
    not exceed cost-based benchmarks, which shall be developed
    to assess all expenditures pursuant to such sourcing
    agreements covering electricity generated by clean coal
    facilities, other than the initial clean coal facility, by
    the procurement administrator, in consultation with the
    Commission staff, Agency staff, and the procurement
    monitor and shall be subject to Commission review and
    approval.
        A utility party to a sourcing agreement shall
    immediately retire any emission credits that it receives in
    connection with the electricity covered by such agreement.
        Utilities shall maintain adequate records documenting
    the purchases under the sourcing agreement to comply with
    this subsection (d) and shall file an accounting with the
    load forecast that must be filed with the Agency by July 15
    of each year, in accordance with subsection (d) of Section
    16-111.5 of the Public Utilities Act.
        A utility shall be deemed to have complied with the
    clean coal portfolio standard specified in this subsection
    (d) if the utility enters into a sourcing agreement as
    required by this subsection (d).
        (2) For purposes of this subsection (d), the required
    execution of sourcing agreements with the initial clean
    coal facility for a particular year shall be measured as a
    percentage of the actual amount of electricity
    (megawatt-hours) supplied by the electric utility to
    eligible retail customers in the planning year ending
    immediately prior to the agreement's execution. For
    purposes of this subsection (d), the amount paid per
    kilowatthour means the total amount paid for electric
    service expressed on a per kilowatthour basis. For purposes
    of this subsection (d), the total amount paid for electric
    service includes without limitation amounts paid for
    supply, transmission, distribution, surcharges and add-on
    taxes.
        Notwithstanding the requirements of this subsection
    (d), the total amount paid under sourcing agreements with
    clean coal facilities pursuant to the procurement plan for
    any given year shall be reduced by an amount necessary to
    limit the annual estimated average net increase due to the
    costs of these resources included in the amounts paid by
    eligible retail customers in connection with electric
    service to:
            (A) in 2010, no more than 0.5% of the amount paid
        per kilowatthour by those customers during the year
        ending May 31, 2009;
            (B) in 2011, the greater of an additional 0.5% of
        the amount paid per kilowatthour by those customers
        during the year ending May 31, 2010 or 1% of the amount
        paid per kilowatthour by those customers during the
        year ending May 31, 2009;
            (C) in 2012, the greater of an additional 0.5% of
        the amount paid per kilowatthour by those customers
        during the year ending May 31, 2011 or 1.5% of the
        amount paid per kilowatthour by those customers during
        the year ending May 31, 2009;
            (D) in 2013, the greater of an additional 0.5% of
        the amount paid per kilowatthour by those customers
        during the year ending May 31, 2012 or 2% of the amount
        paid per kilowatthour by those customers during the
        year ending May 31, 2009; and
            (E) thereafter, the total amount paid under
        sourcing agreements with clean coal facilities
        pursuant to the procurement plan for any single year
        shall be reduced by an amount necessary to limit the
        estimated average net increase due to the cost of these
        resources included in the amounts paid by eligible
        retail customers in connection with electric service
        to no more than the greater of (i) 2.015% of the amount
        paid per kilowatthour by those customers during the
        year ending May 31, 2009 or (ii) the incremental amount
        per kilowatthour paid for these resources in 2013.
        These requirements may be altered only as provided by
        statute.
        No later than June 30, 2015, the Commission shall
    review the limitation on the total amount paid under
    sourcing agreements, if any, with clean coal facilities
    pursuant to this subsection (d) and report to the General
    Assembly its findings as to whether that limitation unduly
    constrains the amount of electricity generated by
    cost-effective clean coal facilities that is covered by
    sourcing agreements.
        (3) Initial clean coal facility. In order to promote
    development of clean coal facilities in Illinois, each
    electric utility subject to this Section shall execute a
    sourcing agreement to source electricity from a proposed
    clean coal facility in Illinois (the "initial clean coal
    facility") that will have a nameplate capacity of at least
    500 MW when commercial operation commences, that has a
    final Clean Air Act permit on June 1, 2009 (the effective
    date of Public Act 95-1027), and that will meet the
    definition of clean coal facility in Section 1-10 of this
    Act when commercial operation commences. The sourcing
    agreements with this initial clean coal facility shall be
    subject to both approval of the initial clean coal facility
    by the General Assembly and satisfaction of the
    requirements of paragraph (4) of this subsection (d) and
    shall be executed within 90 days after any such approval by
    the General Assembly. The Agency and the Commission shall
    have authority to inspect all books and records associated
    with the initial clean coal facility during the term of
    such a sourcing agreement. A utility's sourcing agreement
    for electricity produced by the initial clean coal facility
    shall include:
            (A) a formula contractual price (the "contract
        price") approved pursuant to paragraph (4) of this
        subsection (d), which shall:
                (i) be determined using a cost of service
            methodology employing either a level or deferred
            capital recovery component, based on a capital
            structure consisting of 45% equity and 55% debt,
            and a return on equity as may be approved by the
            Federal Energy Regulatory Commission, which in any
            case may not exceed the lower of 11.5% or the rate
            of return approved by the General Assembly
            pursuant to paragraph (4) of this subsection (d);
            and
                (ii) provide that all miscellaneous net
            revenue, including but not limited to net revenue
            from the sale of emission allowances, if any,
            substitute natural gas, if any, grants or other
            support provided by the State of Illinois or the
            United States Government, firm transmission
            rights, if any, by-products produced by the
            facility, energy or capacity derived from the
            facility and not covered by a sourcing agreement
            pursuant to paragraph (3) of this subsection (d) or
            item (5) of subsection (d) of Section 16-115 of the
            Public Utilities Act, whether generated from the
            synthesis gas derived from coal, from SNG, or from
            natural gas, shall be credited against the revenue
            requirement for this initial clean coal facility;
            (B) power purchase provisions, which shall:
                (i) provide that the utility party to such
            sourcing agreement shall pay the contract price
            for electricity delivered under such sourcing
            agreement;
                (ii) require delivery of electricity to the
            regional transmission organization market of the
            utility that is party to such sourcing agreement;
                (iii) require the utility party to such
            sourcing agreement to buy from the initial clean
            coal facility in each hour an amount of energy
            equal to all clean coal energy made available from
            the initial clean coal facility during such hour
            times a fraction, the numerator of which is such
            utility's retail market sales of electricity
            (expressed in kilowatthours sold) in the State
            during the prior calendar month and the
            denominator of which is the total retail market
            sales of electricity (expressed in kilowatthours
            sold) in the State by utilities during such prior
            month and the sales of electricity (expressed in
            kilowatthours sold) in the State by alternative
            retail electric suppliers during such prior month
            that are subject to the requirements of this
            subsection (d) and paragraph (5) of subsection (d)
            of Section 16-115 of the Public Utilities Act,
            provided that the amount purchased by the utility
            in any year will be limited by paragraph (2) of
            this subsection (d); and
                (iv) be considered pre-existing contracts in
            such utility's procurement plans for eligible
            retail customers;
            (C) contract for differences provisions, which
        shall:
                (i) require the utility party to such sourcing
            agreement to contract with the initial clean coal
            facility in each hour with respect to an amount of
            energy equal to all clean coal energy made
            available from the initial clean coal facility
            during such hour times a fraction, the numerator of
            which is such utility's retail market sales of
            electricity (expressed in kilowatthours sold) in
            the utility's service territory in the State
            during the prior calendar month and the
            denominator of which is the total retail market
            sales of electricity (expressed in kilowatthours
            sold) in the State by utilities during such prior
            month and the sales of electricity (expressed in
            kilowatthours sold) in the State by alternative
            retail electric suppliers during such prior month
            that are subject to the requirements of this
            subsection (d) and paragraph (5) of subsection (d)
            of Section 16-115 of the Public Utilities Act,
            provided that the amount paid by the utility in any
            year will be limited by paragraph (2) of this
            subsection (d);
                (ii) provide that the utility's payment
            obligation in respect of the quantity of
            electricity determined pursuant to the preceding
            clause (i) shall be limited to an amount equal to
            (1) the difference between the contract price
            determined pursuant to subparagraph (A) of
            paragraph (3) of this subsection (d) and the
            day-ahead price for electricity delivered to the
            regional transmission organization market of the
            utility that is party to such sourcing agreement
            (or any successor delivery point at which such
            utility's supply obligations are financially
            settled on an hourly basis) (the "reference
            price") on the day preceding the day on which the
            electricity is delivered to the initial clean coal
            facility busbar, multiplied by (2) the quantity of
            electricity determined pursuant to the preceding
            clause (i); and
                (iii) not require the utility to take physical
            delivery of the electricity produced by the
            facility;
            (D) general provisions, which shall:
                (i) specify a term of no more than 30 years,
            commencing on the commercial operation date of the
            facility;
                (ii) provide that utilities shall maintain
            adequate records documenting purchases under the
            sourcing agreements entered into to comply with
            this subsection (d) and shall file an accounting
            with the load forecast that must be filed with the
            Agency by July 15 of each year, in accordance with
            subsection (d) of Section 16-111.5 of the Public
            Utilities Act;
                (iii) provide that all costs associated with
            the initial clean coal facility will be
            periodically reported to the Federal Energy
            Regulatory Commission and to purchasers in
            accordance with applicable laws governing
            cost-based wholesale power contracts;
                (iv) permit the Illinois Power Agency to
            assume ownership of the initial clean coal
            facility, without monetary consideration and
            otherwise on reasonable terms acceptable to the
            Agency, if the Agency so requests no less than 3
            years prior to the end of the stated contract term;
                (v) require the owner of the initial clean coal
            facility to provide documentation to the
            Commission each year, starting in the facility's
            first year of commercial operation, accurately
            reporting the quantity of carbon emissions from
            the facility that have been captured and
            sequestered and report any quantities of carbon
            released from the site or sites at which carbon
            emissions were sequestered in prior years, based
            on continuous monitoring of such sites. If, in any
            year after the first year of commercial operation,
            the owner of the facility fails to demonstrate that
            the initial clean coal facility captured and
            sequestered at least 50% of the total carbon
            emissions that the facility would otherwise emit
            or that sequestration of emissions from prior
            years has failed, resulting in the release of
            carbon dioxide into the atmosphere, the owner of
            the facility must offset excess emissions. Any
            such carbon offsets must be permanent, additional,
            verifiable, real, located within the State of
            Illinois, and legally and practicably enforceable.
            The cost of such offsets for the facility that are
            not recoverable shall not exceed $15 million in any
            given year. No costs of any such purchases of
            carbon offsets may be recovered from a utility or
            its customers. All carbon offsets purchased for
            this purpose and any carbon emission credits
            associated with sequestration of carbon from the
            facility must be permanently retired. The initial
            clean coal facility shall not forfeit its
            designation as a clean coal facility if the
            facility fails to fully comply with the applicable
            carbon sequestration requirements in any given
            year, provided the requisite offsets are
            purchased. However, the Attorney General, on
            behalf of the People of the State of Illinois, may
            specifically enforce the facility's sequestration
            requirement and the other terms of this contract
            provision. Compliance with the sequestration
            requirements and offset purchase requirements
            specified in paragraph (3) of this subsection (d)
            shall be reviewed annually by an independent
            expert retained by the owner of the initial clean
            coal facility, with the advance written approval
            of the Attorney General. The Commission may, in the
            course of the review specified in item (vii),
            reduce the allowable return on equity for the
            facility if the facility willfully fails to comply
            with the carbon capture and sequestration
            requirements set forth in this item (v);
                (vi) include limits on, and accordingly
            provide for modification of, the amount the
            utility is required to source under the sourcing
            agreement consistent with paragraph (2) of this
            subsection (d);
                (vii) require Commission review: (1) to
            determine the justness, reasonableness, and
            prudence of the inputs to the formula referenced in
            subparagraphs (A)(i) through (A)(iii) of paragraph
            (3) of this subsection (d), prior to an adjustment
            in those inputs including, without limitation, the
            capital structure and return on equity, fuel
            costs, and other operations and maintenance costs
            and (2) to approve the costs to be passed through
            to customers under the sourcing agreement by which
            the utility satisfies its statutory obligations.
            Commission review shall occur no less than every 3
            years, regardless of whether any adjustments have
            been proposed, and shall be completed within 9
            months;
                (viii) limit the utility's obligation to such
            amount as the utility is allowed to recover through
            tariffs filed with the Commission, provided that
            neither the clean coal facility nor the utility
            waives any right to assert federal pre-emption or
            any other argument in response to a purported
            disallowance of recovery costs;
                (ix) limit the utility's or alternative retail
            electric supplier's obligation to incur any
            liability until such time as the facility is in
            commercial operation and generating power and
            energy and such power and energy is being delivered
            to the facility busbar;
                (x) provide that the owner or owners of the
            initial clean coal facility, which is the
            counterparty to such sourcing agreement, shall
            have the right from time to time to elect whether
            the obligations of the utility party thereto shall
            be governed by the power purchase provisions or the
            contract for differences provisions;
                (xi) append documentation showing that the
            formula rate and contract, insofar as they relate
            to the power purchase provisions, have been
            approved by the Federal Energy Regulatory
            Commission pursuant to Section 205 of the Federal
            Power Act;
                (xii) provide that any changes to the terms of
            the contract, insofar as such changes relate to the
            power purchase provisions, are subject to review
            under the public interest standard applied by the
            Federal Energy Regulatory Commission pursuant to
            Sections 205 and 206 of the Federal Power Act; and
                (xiii) conform with customary lender
            requirements in power purchase agreements used as
            the basis for financing non-utility generators.
        (4) Effective date of sourcing agreements with the
    initial clean coal facility. Any proposed sourcing
    agreement with the initial clean coal facility shall not
    become effective unless the following reports are prepared
    and submitted and authorizations and approvals obtained:
            (i) Facility cost report. The owner of the initial
        clean coal facility shall submit to the Commission, the
        Agency, and the General Assembly a front-end
        engineering and design study, a facility cost report,
        method of financing (including but not limited to
        structure and associated costs), and an operating and
        maintenance cost quote for the facility (collectively
        "facility cost report"), which shall be prepared in
        accordance with the requirements of this paragraph (4)
        of subsection (d) of this Section, and shall provide
        the Commission and the Agency access to the work
        papers, relied upon documents, and any other backup
        documentation related to the facility cost report.
            (ii) Commission report. Within 6 months following
        receipt of the facility cost report, the Commission, in
        consultation with the Agency, shall submit a report to
        the General Assembly setting forth its analysis of the
        facility cost report. Such report shall include, but
        not be limited to, a comparison of the costs associated
        with electricity generated by the initial clean coal
        facility to the costs associated with electricity
        generated by other types of generation facilities, an
        analysis of the rate impacts on residential and small
        business customers over the life of the sourcing
        agreements, and an analysis of the likelihood that the
        initial clean coal facility will commence commercial
        operation by and be delivering power to the facility's
        busbar by 2016. To assist in the preparation of its
        report, the Commission, in consultation with the
        Agency, may hire one or more experts or consultants,
        the costs of which shall be paid for by the owner of
        the initial clean coal facility. The Commission and
        Agency may begin the process of selecting such experts
        or consultants prior to receipt of the facility cost
        report.
            (iii) General Assembly approval. The proposed
        sourcing agreements shall not take effect unless,
        based on the facility cost report and the Commission's
        report, the General Assembly enacts authorizing
        legislation approving (A) the projected price, stated
        in cents per kilowatthour, to be charged for
        electricity generated by the initial clean coal
        facility, (B) the projected impact on residential and
        small business customers' bills over the life of the
        sourcing agreements, and (C) the maximum allowable
        return on equity for the project; and
            (iv) Commission review. If the General Assembly
        enacts authorizing legislation pursuant to
        subparagraph (iii) approving a sourcing agreement, the
        Commission shall, within 90 days of such enactment,
        complete a review of such sourcing agreement. During
        such time period, the Commission shall implement any
        directive of the General Assembly, resolve any
        disputes between the parties to the sourcing agreement
        concerning the terms of such agreement, approve the
        form of such agreement, and issue an order finding that
        the sourcing agreement is prudent and reasonable.
        The facility cost report shall be prepared as follows:
            (A) The facility cost report shall be prepared by
        duly licensed engineering and construction firms
        detailing the estimated capital costs payable to one or
        more contractors or suppliers for the engineering,
        procurement and construction of the components
        comprising the initial clean coal facility and the
        estimated costs of operation and maintenance of the
        facility. The facility cost report shall include:
                (i) an estimate of the capital cost of the core
            plant based on one or more front end engineering
            and design studies for the gasification island and
            related facilities. The core plant shall include
            all civil, structural, mechanical, electrical,
            control, and safety systems.
                (ii) an estimate of the capital cost of the
            balance of the plant, including any capital costs
            associated with sequestration of carbon dioxide
            emissions and all interconnects and interfaces
            required to operate the facility, such as
            transmission of electricity, construction or
            backfeed power supply, pipelines to transport
            substitute natural gas or carbon dioxide, potable
            water supply, natural gas supply, water supply,
            water discharge, landfill, access roads, and coal
            delivery.
            The quoted construction costs shall be expressed
        in nominal dollars as of the date that the quote is
        prepared and shall include capitalized financing costs
        during construction, taxes, insurance, and other
        owner's costs, and an assumed escalation in materials
        and labor beyond the date as of which the construction
        cost quote is expressed.
            (B) The front end engineering and design study for
        the gasification island and the cost study for the
        balance of plant shall include sufficient design work
        to permit quantification of major categories of
        materials, commodities and labor hours, and receipt of
        quotes from vendors of major equipment required to
        construct and operate the clean coal facility.
            (C) The facility cost report shall also include an
        operating and maintenance cost quote that will provide
        the estimated cost of delivered fuel, personnel,
        maintenance contracts, chemicals, catalysts,
        consumables, spares, and other fixed and variable
        operations and maintenance costs. The delivered fuel
        cost estimate will be provided by a recognized third
        party expert or experts in the fuel and transportation
        industries. The balance of the operating and
        maintenance cost quote, excluding delivered fuel
        costs, will be developed based on the inputs provided
        by duly licensed engineering and construction firms
        performing the construction cost quote, potential
        vendors under long-term service agreements and plant
        operating agreements, or recognized third party plant
        operator or operators.
            The operating and maintenance cost quote
        (including the cost of the front end engineering and
        design study) shall be expressed in nominal dollars as
        of the date that the quote is prepared and shall
        include taxes, insurance, and other owner's costs, and
        an assumed escalation in materials and labor beyond the
        date as of which the operating and maintenance cost
        quote is expressed.
            (D) The facility cost report shall also include an
        analysis of the initial clean coal facility's ability
        to deliver power and energy into the applicable
        regional transmission organization markets and an
        analysis of the expected capacity factor for the
        initial clean coal facility.
            (E) Amounts paid to third parties unrelated to the
        owner or owners of the initial clean coal facility to
        prepare the core plant construction cost quote,
        including the front end engineering and design study,
        and the operating and maintenance cost quote will be
        reimbursed through Coal Development Bonds.
        (5) Re-powering and retrofitting coal-fired power
    plants previously owned by Illinois utilities to qualify as
    clean coal facilities. During the 2009 procurement
    planning process and thereafter, the Agency and the
    Commission shall consider sourcing agreements covering
    electricity generated by power plants that were previously
    owned by Illinois utilities and that have been or will be
    converted into clean coal facilities, as defined by Section
    1-10 of this Act. Pursuant to such procurement planning
    process, the owners of such facilities may propose to the
    Agency sourcing agreements with utilities and alternative
    retail electric suppliers required to comply with
    subsection (d) of this Section and item (5) of subsection
    (d) of Section 16-115 of the Public Utilities Act, covering
    electricity generated by such facilities. In the case of
    sourcing agreements that are power purchase agreements,
    the contract price for electricity sales shall be
    established on a cost of service basis. In the case of
    sourcing agreements that are contracts for differences,
    the contract price from which the reference price is
    subtracted shall be established on a cost of service basis.
    The Agency and the Commission may approve any such utility
    sourcing agreements that do not exceed cost-based
    benchmarks developed by the procurement administrator, in
    consultation with the Commission staff, Agency staff and
    the procurement monitor, subject to Commission review and
    approval. The Commission shall have authority to inspect
    all books and records associated with these clean coal
    facilities during the term of any such contract.
        (6) Costs incurred under this subsection (d) or
    pursuant to a contract entered into under this subsection
    (d) shall be deemed prudently incurred and reasonable in
    amount and the electric utility shall be entitled to full
    cost recovery pursuant to the tariffs filed with the
    Commission.
    (d-5) Zero emission standard.
        (1) Beginning with the delivery year commencing on June
    1, 2017, the Agency shall, for electric utilities that
    serve at least 100,000 retail customers in this State,
    procure contracts with zero emission facilities that are
    reasonably capable of generating cost-effective zero
    emission credits in an amount approximately equal to 16% of
    the actual amount of electricity delivered by each electric
    utility to retail customers in the State during calendar
    year 2014. For an electric utility serving fewer than
    100,000 retail customers in this State that requested,
    under Section 16-111.5 of the Public Utilities Act, that
    the Agency procure power and energy for all or a portion of
    the utility's Illinois load for the delivery year
    commencing June 1, 2016, the Agency shall procure contracts
    with zero emission facilities that are reasonably capable
    of generating cost-effective zero emission credits in an
    amount approximately equal to 16% of the portion of power
    and energy to be procured by the Agency for the utility.
    The duration of the contracts procured under this
    subsection (d-5) shall be for a term of 10 years ending May
    31, 2027. The quantity of zero emission credits to be
    procured under the contracts shall be all of the zero
    emission credits generated by the zero emission facility in
    each delivery year; however, if the zero emission facility
    is owned by more than one entity, then the quantity of zero
    emission credits to be procured under the contracts shall
    be the amount of zero emission credits that are generated
    from the portion of the zero emission facility that is
    owned by the winning supplier.
        The 16% value identified in this paragraph (1) is the
    average of the percentage targets in subparagraph (B) of
    paragraph (1) of subsection (c) of this Section 1-75 of
    this Act for the 5 delivery years beginning June 1, 2017.
        The procurement process shall be subject to the
    following provisions:
            (A) Those zero emission facilities that intend to
        participate in the procurement shall submit to the
        Agency the following eligibility information for each
        zero emission facility on or before the date
        established by the Agency:
                (i) the in-service date and remaining useful
            life of the zero emission facility;
                (ii) the amount of power generated annually
            for each of the years 2005 through 2015, and the
            projected zero emission credits to be generated
            over the remaining useful life of the zero emission
            facility, which shall be used to determine the
            capability of each facility;
                (iii) the annual zero emission facility cost
            projections, expressed on a per megawatthour
            basis, over the next 6 delivery years, which shall
            include the following: operation and maintenance
            expenses; fully allocated overhead costs, which
            shall be allocated using the methodology developed
            by the Institute for Nuclear Power Operations;
            fuel expenditures; non-fuel capital expenditures;
            spent fuel expenditures; a return on working
            capital; the cost of operational and market risks
            that could be avoided by ceasing operation; and any
            other costs necessary for continued operations,
            provided that "necessary" means, for purposes of
            this item (iii), that the costs could reasonably be
            avoided only by ceasing operations of the zero
            emission facility; and
                (iv) a commitment to continue operating, for
            the duration of the contract or contracts executed
            under the procurement held under this subsection
            (d-5), the zero emission facility that produces
            the zero emission credits to be procured in the
            procurement.
            The information described in item (iii) of this
        subparagraph (A) may be submitted on a confidential
        basis and shall be treated and maintained by the
        Agency, the procurement administrator, and the
        Commission as confidential and proprietary and exempt
        from disclosure under subparagraphs (a) and (g) of
        paragraph (1) of Section 7 of the Freedom of
        Information Act. The Office of Attorney General shall
        have access to, and maintain the confidentiality of,
        such information pursuant to Section 6.5 of the
        Attorney General Act.
            (B) The price for each zero emission credit
        procured under this subsection (d-5) for each delivery
        year shall be in an amount that equals the Social Cost
        of Carbon, expressed on a price per megawatthour basis.
        However, to ensure that the procurement remains
        affordable to retail customers in this State if
        electricity prices increase, the price in an
        applicable delivery year shall be reduced below the
        Social Cost of Carbon by the amount ("Price
        Adjustment") by which the market price index for the
        applicable delivery year exceeds the baseline market
        price index for the consecutive 12-month period ending
        May 31, 2016. If the Price Adjustment is greater than
        or equal to the Social Cost of Carbon in an applicable
        delivery year, then no payments shall be due in that
        delivery year. The components of this calculation are
        defined as follows:
                (i) Social Cost of Carbon: The Social Cost of
            Carbon is $16.50 per megawatthour, which is based
            on the U.S. Interagency Working Group on Social
            Cost of Carbon's price in the August 2016 Technical
            Update using a 3% discount rate, adjusted for
            inflation for each year of the program. Beginning
            with the delivery year commencing June 1, 2023, the
            price per megawatthour shall increase by $1 per
            megawatthour, and continue to increase by an
            additional $1 per megawatthour each delivery year
            thereafter.
                (ii) Baseline market price index: The baseline
            market price index for the consecutive 12-month
            period ending May 31, 2016 is $31.40 per
            megawatthour, which is based on the sum of (aa) the
            average day-ahead energy price across all hours of
            such 12-month period at the PJM Interconnection
            LLC Northern Illinois Hub, (bb) 50% multiplied by
            the Base Residual Auction, or its successor,
            capacity price for the rest of the RTO zone group
            determined by PJM Interconnection LLC, divided by
            24 hours per day, and (cc) 50% multiplied by the
            Planning Resource Auction, or its successor,
            capacity price for Zone 4 determined by the
            Midcontinent Independent System Operator, Inc.,
            divided by 24 hours per day.
                (iii) Market price index: The market price
            index for a delivery year shall be the sum of
            projected energy prices and projected capacity
            prices determined as follows:
                    (aa) Projected energy prices: the
                projected energy prices for the applicable
                delivery year shall be calculated once for the
                year using the forward market price for the PJM
                Interconnection, LLC Northern Illinois Hub.
                The forward market price shall be calculated as
                follows: the energy forward prices for each
                month of the applicable delivery year averaged
                for each trade date during the calendar year
                immediately preceding that delivery year to
                produce a single energy forward price for the
                delivery year. The forward market price
                calculation shall use data published by the
                Intercontinental Exchange, or its successor.
                    (bb) Projected capacity prices:
                        (I) For the delivery years commencing
                    June 1, 2017, June 1, 2018, and June 1,
                    2019, the projected capacity price shall
                    be equal to the sum of (1) 50% multiplied
                    by the Base Residual Auction, or its
                    successor, price for the rest of the RTO
                    zone group as determined by PJM
                    Interconnection LLC, divided by 24 hours
                    per day and, (2) 50% multiplied by the
                    resource auction price determined in the
                    resource auction administered by the
                    Midcontinent Independent System Operator,
                    Inc., in which the largest percentage of
                    load cleared for Local Resource Zone 4,
                    divided by 24 hours per day, and where such
                    price is determined by the Midcontinent
                    Independent System Operator, Inc.
                        (II) For the delivery year commencing
                    June 1, 2020, and each year thereafter, the
                    projected capacity price shall be equal to
                    the sum of (1) 50% multiplied by the Base
                    Residual Auction, or its successor, price
                    for the ComEd zone as determined by PJM
                    Interconnection LLC, divided by 24 hours
                    per day, and (2) 50% multiplied by the
                    resource auction price determined in the
                    resource auction administered by the
                    Midcontinent Independent System Operator,
                    Inc., in which the largest percentage of
                    load cleared for Local Resource Zone 4,
                    divided by 24 hours per day, and where such
                    price is determined by the Midcontinent
                    Independent System Operator, Inc.
            For purposes of this subsection (d-5):
                "Rest of the RTO" and "ComEd Zone" shall have
            the meaning ascribed to them by PJM
            Interconnection, LLC.
                "RTO" means regional transmission
            organization.
            (C) No later than 45 days after June 1, 2017 (the
        effective date of Public Act 99-906), the Agency shall
        publish its proposed zero emission standard
        procurement plan. The plan shall be consistent with the
        provisions of this paragraph (1) and shall provide that
        winning bids shall be selected based on public interest
        criteria that include, but are not limited to,
        minimizing carbon dioxide emissions that result from
        electricity consumed in Illinois and minimizing sulfur
        dioxide, nitrogen oxide, and particulate matter
        emissions that adversely affect the citizens of this
        State. In particular, the selection of winning bids
        shall take into account the incremental environmental
        benefits resulting from the procurement, such as any
        existing environmental benefits that are preserved by
        the procurements held under Public Act 99-906 and would
        cease to exist if the procurements were not held,
        including the preservation of zero emission
        facilities. The plan shall also describe in detail how
        each public interest factor shall be considered and
        weighted in the bid selection process to ensure that
        the public interest criteria are applied to the
        procurement and given full effect.
            For purposes of developing the plan, the Agency
        shall consider any reports issued by a State agency,
        board, or commission under House Resolution 1146 of the
        98th General Assembly and paragraph (4) of subsection
        (d) of this Section 1-75 of this Act, as well as
        publicly available analyses and studies performed by
        or for regional transmission organizations that serve
        the State and their independent market monitors.
            Upon publishing of the zero emission standard
        procurement plan, copies of the plan shall be posted
        and made publicly available on the Agency's website.
        All interested parties shall have 10 days following the
        date of posting to provide comment to the Agency on the
        plan. All comments shall be posted to the Agency's
        website. Following the end of the comment period, but
        no more than 60 days later than June 1, 2017 (the
        effective date of Public Act 99-906), the Agency shall
        revise the plan as necessary based on the comments
        received and file its zero emission standard
        procurement plan with the Commission.
            If the Commission determines that the plan will
        result in the procurement of cost-effective zero
        emission credits, then the Commission shall, after
        notice and hearing, but no later than 45 days after the
        Agency filed the plan, approve the plan or approve with
        modification. For purposes of this subsection (d-5),
        "cost effective" means the projected costs of
        procuring zero emission credits from zero emission
        facilities do not cause the limit stated in paragraph
        (2) of this subsection to be exceeded.
            (C-5) As part of the Commission's review and
        acceptance or rejection of the procurement results,
        the Commission shall, in its public notice of
        successful bidders:
                (i) identify how the winning bids satisfy the
            public interest criteria described in subparagraph
            (C) of this paragraph (1) of minimizing carbon
            dioxide emissions that result from electricity
            consumed in Illinois and minimizing sulfur
            dioxide, nitrogen oxide, and particulate matter
            emissions that adversely affect the citizens of
            this State;
                (ii) specifically address how the selection of
            winning bids takes into account the incremental
            environmental benefits resulting from the
            procurement, including any existing environmental
            benefits that are preserved by the procurements
            held under Public Act 99-906 and would have ceased
            to exist if the procurements had not been held,
            such as the preservation of zero emission
            facilities;
                (iii) quantify the environmental benefit of
            preserving the resources identified in item (ii)
            of this subparagraph (C-5), including the
            following:
                    (aa) the value of avoided greenhouse gas
                emissions measured as the product of the zero
                emission facilities' output over the contract
                term multiplied by the U.S. Environmental
                Protection Agency eGrid subregion carbon
                dioxide emission rate and the U.S. Interagency
                Working Group on Social Cost of Carbon's price
                in the August 2016 Technical Update using a 3%
                discount rate, adjusted for inflation for each
                delivery year; and
                    (bb) the costs of replacement with other
                zero carbon dioxide resources, including wind
                and photovoltaic, based upon the simple
                average of the following:
                        (I) the price, or if there is more than
                    one price, the average of the prices, paid
                    for renewable energy credits from new
                    utility-scale wind projects in the
                    procurement events specified in item (i)
                    of subparagraph (G) of paragraph (1) of
                    subsection (c) of this Section 1-75 of this
                    Act; and
                        (II) the price, or if there is more
                    than one price, the average of the prices,
                    paid for renewable energy credits from new
                    utility-scale solar projects and
                    brownfield site photovoltaic projects in
                    the procurement events specified in item
                    (ii) of subparagraph (G) of paragraph (1)
                    of subsection (c) of this Section 1-75 of
                    this Act and, after January 1, 2015,
                    renewable energy credits from photovoltaic
                    distributed generation projects in
                    procurement events held under subsection
                    (c) of this Section 1-75 of this Act.
            Each utility shall enter into binding contractual
        arrangements with the winning suppliers.
            The procurement described in this subsection
        (d-5), including, but not limited to, the execution of
        all contracts procured, shall be completed no later
        than May 10, 2017. Based on the effective date of
        Public Act 99-906, the Agency and Commission may, as
        appropriate, modify the various dates and timelines
        under this subparagraph and subparagraphs (C) and (D)
        of this paragraph (1). The procurement and plan
        approval processes required by this subsection (d-5)
        shall be conducted in conjunction with the procurement
        and plan approval processes required by subsection (c)
        of this Section and Section 16-111.5 of the Public
        Utilities Act, to the extent practicable.
        Notwithstanding whether a procurement event is
        conducted under Section 16-111.5 of the Public
        Utilities Act, the Agency shall immediately initiate a
        procurement process on June 1, 2017 (the effective date
        of Public Act 99-906).
            (D) Following the procurement event described in
        this paragraph (1) and consistent with subparagraph
        (B) of this paragraph (1), the Agency shall calculate
        the payments to be made under each contract for the
        next delivery year based on the market price index for
        that delivery year. The Agency shall publish the
        payment calculations no later than May 25, 2017 and
        every May 25 thereafter.
            (E) Notwithstanding the requirements of this
        subsection (d-5), the contracts executed under this
        subsection (d-5) shall provide that the zero emission
        facility may, as applicable, suspend or terminate
        performance under the contracts in the following
        instances:
                (i) A zero emission facility shall be excused
            from its performance under the contract for any
            cause beyond the control of the resource,
            including, but not restricted to, acts of God,
            flood, drought, earthquake, storm, fire,
            lightning, epidemic, war, riot, civil disturbance
            or disobedience, labor dispute, labor or material
            shortage, sabotage, acts of public enemy,
            explosions, orders, regulations or restrictions
            imposed by governmental, military, or lawfully
            established civilian authorities, which, in any of
            the foregoing cases, by exercise of commercially
            reasonable efforts the zero emission facility
            could not reasonably have been expected to avoid,
            and which, by the exercise of commercially
            reasonable efforts, it has been unable to
            overcome. In such event, the zero emission
            facility shall be excused from performance for the
            duration of the event, including, but not limited
            to, delivery of zero emission credits, and no
            payment shall be due to the zero emission facility
            during the duration of the event.
                (ii) A zero emission facility shall be
            permitted to terminate the contract if legislation
            is enacted into law by the General Assembly that
            imposes or authorizes a new tax, special
            assessment, or fee on the generation of
            electricity, the ownership or leasehold of a
            generating unit, or the privilege or occupation of
            such generation, ownership, or leasehold of
            generation units by a zero emission facility.
            However, the provisions of this item (ii) do not
            apply to any generally applicable tax, special
            assessment or fee, or requirements imposed by
            federal law.
                (iii) A zero emission facility shall be
            permitted to terminate the contract in the event
            that the resource requires capital expenditures in
            excess of $40,000,000 that were neither known nor
            reasonably foreseeable at the time it executed the
            contract and that a prudent owner or operator of
            such resource would not undertake.
                (iv) A zero emission facility shall be
            permitted to terminate the contract in the event
            the Nuclear Regulatory Commission terminates the
            resource's license.
            (F) If the zero emission facility elects to
        terminate a contract under this subparagraph (E) , of
        this paragraph (1), then the Commission shall reopen
        the docket in which the Commission approved the zero
        emission standard procurement plan under subparagraph
        (C) of this paragraph (1) and, after notice and
        hearing, enter an order acknowledging the contract
        termination election if such termination is consistent
        with the provisions of this subsection (d-5).
        (2) For purposes of this subsection (d-5), the amount
    paid per kilowatthour means the total amount paid for
    electric service expressed on a per kilowatthour basis. For
    purposes of this subsection (d-5), the total amount paid
    for electric service includes, without limitation, amounts
    paid for supply, transmission, distribution, surcharges,
    and add-on taxes.
        Notwithstanding the requirements of this subsection
    (d-5), the contracts executed under this subsection (d-5)
    shall provide that the total of zero emission credits
    procured under a procurement plan shall be subject to the
    limitations of this paragraph (2). For each delivery year,
    the contractual volume receiving payments in such year
    shall be reduced for all retail customers based on the
    amount necessary to limit the net increase that delivery
    year to the costs of those credits included in the amounts
    paid by eligible retail customers in connection with
    electric service to no more than 1.65% of the amount paid
    per kilowatthour by eligible retail customers during the
    year ending May 31, 2009. The result of this computation
    shall apply to and reduce the procurement for all retail
    customers, and all those customers shall pay the same
    single, uniform cents per kilowatthour charge under
    subsection (k) of Section 16-108 of the Public Utilities
    Act. To arrive at a maximum dollar amount of zero emission
    credits to be paid for the particular delivery year, the
    resulting per kilowatthour amount shall be applied to the
    actual amount of kilowatthours of electricity delivered by
    the electric utility in the delivery year immediately prior
    to the procurement, to all retail customers in its service
    territory. Unpaid contractual volume for any delivery year
    shall be paid in any subsequent delivery year in which such
    payments can be made without exceeding the amount specified
    in this paragraph (2). The calculations required by this
    paragraph (2) shall be made only once for each procurement
    plan year. Once the determination as to the amount of zero
    emission credits to be paid is made based on the
    calculations set forth in this paragraph (2), no subsequent
    rate impact determinations shall be made and no adjustments
    to those contract amounts shall be allowed. All costs
    incurred under those contracts and in implementing this
    subsection (d-5) shall be recovered by the electric utility
    as provided in this Section.
        No later than June 30, 2019, the Commission shall
    review the limitation on the amount of zero emission
    credits procured under this subsection (d-5) and report to
    the General Assembly its findings as to whether that
    limitation unduly constrains the procurement of
    cost-effective zero emission credits.
        (3) Six years after the execution of a contract under
    this subsection (d-5), the Agency shall determine whether
    the actual zero emission credit payments received by the
    supplier over the 6-year period exceed the Average ZEC
    Payment. In addition, at the end of the term of a contract
    executed under this subsection (d-5), or at the time, if
    any, a zero emission facility's contract is terminated
    under subparagraph (E) of paragraph (1) of this subsection
    (d-5), then the Agency shall determine whether the actual
    zero emission credit payments received by the supplier over
    the term of the contract exceed the Average ZEC Payment,
    after taking into account any amounts previously credited
    back to the utility under this paragraph (3). If the Agency
    determines that the actual zero emission credit payments
    received by the supplier over the relevant period exceed
    the Average ZEC Payment, then the supplier shall credit the
    difference back to the utility. The amount of the credit
    shall be remitted to the applicable electric utility no
    later than 120 days after the Agency's determination, which
    the utility shall reflect as a credit on its retail
    customer bills as soon as practicable; however, the credit
    remitted to the utility shall not exceed the total amount
    of payments received by the facility under its contract.
        For purposes of this Section, the Average ZEC Payment
    shall be calculated by multiplying the quantity of zero
    emission credits delivered under the contract times the
    average contract price. The average contract price shall be
    determined by subtracting the amount calculated under
    subparagraph (B) of this paragraph (3) from the amount
    calculated under subparagraph (A) of this paragraph (3), as
    follows:
            (A) The average of the Social Cost of Carbon, as
        defined in subparagraph (B) of paragraph (1) of this
        subsection (d-5), during the term of the contract.
            (B) The average of the market price indices, as
        defined in subparagraph (B) of paragraph (1) of this
        subsection (d-5), during the term of the contract,
        minus the baseline market price index, as defined in
        subparagraph (B) of paragraph (1) of this subsection
        (d-5).
        If the subtraction yields a negative number, then the
    Average ZEC Payment shall be zero.
        (4) Cost-effective zero emission credits procured from
    zero emission facilities shall satisfy the applicable
    definitions set forth in Section 1-10 of this Act.
        (5) The electric utility shall retire all zero emission
    credits used to comply with the requirements of this
    subsection (d-5).
        (6) Electric utilities shall be entitled to recover all
    of the costs associated with the procurement of zero
    emission credits through an automatic adjustment clause
    tariff in accordance with subsection (k) and (m) of Section
    16-108 of the Public Utilities Act, and the contracts
    executed under this subsection (d-5) shall provide that the
    utilities' payment obligations under such contracts shall
    be reduced if an adjustment is required under subsection
    (m) of Section 16-108 of the Public Utilities Act.
        (7) This subsection (d-5) shall become inoperative on
    January 1, 2028.
    (e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
    (f) The Agency shall submit the final procurement plan to
the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards
set forth in Section 16-111.5 of the Public Utilities Act.
    (g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of the annual
procurement plan for the utility.
    (h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive procurement
process.
    (i) A renewable energy credit, carbon emission credit, or
zero emission credit can only be used once to comply with a
single portfolio or other standard as set forth in subsection
(c), subsection (d), or subsection (d-5) of this Section,
respectively. A renewable energy credit, carbon emission
credit, or zero emission credit cannot be used to satisfy the
requirements of more than one standard. If more than one type
of credit is issued for the same megawatt hour of energy, only
one credit can be used to satisfy the requirements of a single
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatt hour of
energy.
(Source: P.A. 99-536, eff. 7-8-16; 99-906, eff. 6-1-17;
100-863, eff. 8-14-18; revised 10-18-18.)