Sen. Michael E. Hastings

Filed: 4/5/2019

 

 


 

 


 
10100SB2080sam004LRB101 11122 RJF 59369 a

1
AMENDMENT TO SENATE BILL 2080

2    AMENDMENT NO. ______. Amend Senate Bill 2080 by replacing
3everything after the enacting clause with the following:
 
4
"Article 1.

 
5    Section 1-5. The Public Utilities Act is amended by
6changing Section 16-108.5 as follows:
 
7    (220 ILCS 5/16-108.5)
8    Sec. 16-108.5. Infrastructure investment and
9modernization; regulatory reform.
10    (a) (Blank).
11    (b) For purposes of this Section, "participating utility"
12means an electric utility or a combination utility serving more
13than 1,000,000 customers in Illinois that voluntarily elects
14and commits to undertake (i) the infrastructure investment
15program consisting of the commitments and obligations

 

 

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1described in this subsection (b) and (ii) the customer
2assistance program consisting of the commitments and
3obligations described in subsection (b-10) of this Section,
4notwithstanding any other provisions of this Act and without
5obtaining any approvals from the Commission or any other agency
6other than as set forth in this Section, regardless of whether
7any such approval would otherwise be required. "Combination
8utility" means a utility that, as of January 1, 2011, provided
9electric service to at least one million retail customers in
10Illinois and gas service to at least 500,000 retail customers
11in Illinois. A participating utility shall recover the
12expenditures made under the infrastructure investment program
13through the ratemaking process, including, but not limited to,
14the performance-based formula rate and process set forth in
15this Section.
16    During the infrastructure investment program's peak
17program year, a participating utility other than a combination
18utility shall create 2,000 full-time equivalent jobs in
19Illinois, and a participating utility that is a combination
20utility shall create 450 full-time equivalent jobs in Illinois
21related to the provision of electric service. These jobs shall
22include direct jobs, contractor positions, and induced jobs,
23but shall not include any portion of a job commitment, not
24specifically contingent on an amendatory Act of the 97th
25General Assembly becoming law, between a participating utility
26and a labor union that existed on December 30, 2011 (the

 

 

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1effective date of Public Act 97-646) and that has not yet been
2fulfilled. A portion of the full-time equivalent jobs created
3by each participating utility shall include incremental
4personnel hired subsequent to December 30, 2011 (the effective
5date of Public Act 97-646). For purposes of this Section, "peak
6program year" means the consecutive 12-month period with the
7highest number of full-time equivalent jobs that occurs between
8the beginning of investment year 2 and the end of investment
9year 4.
10    A participating utility shall meet one of the following
11commitments, as applicable:
12        (1) Beginning no later than 180 days after a
13    participating utility other than a combination utility
14    files a performance-based formula rate tariff pursuant to
15    subsection (c) of this Section, or, beginning no later than
16    January 1, 2012 if such utility files such
17    performance-based formula rate tariff within 14 days of
18    October 26, 2011 (the effective date of Public Act 97-616),
19    the participating utility shall, except as provided in
20    subsection (b-5):
21            (A) over a 5-year period, invest an estimated
22        $1,300,000,000 in electric system upgrades,
23        modernization projects, and training facilities,
24        including, but not limited to:
25                (i) distribution infrastructure improvements
26            totaling an estimated $1,000,000,000, including

 

 

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1            underground residential distribution cable
2            injection and replacement and mainline cable
3            system refurbishment and replacement projects;
4                (ii) training facility construction or upgrade
5            projects totaling an estimated $10,000,000,
6            provided that, at a minimum, one such facility
7            shall be located in a municipality having a
8            population of more than 2 million residents and one
9            such facility shall be located in a municipality
10            having a population of more than 150,000 residents
11            but fewer than 170,000 residents; any such new
12            facility located in a municipality having a
13            population of more than 2 million residents must be
14            designed for the purpose of obtaining, and the
15            owner of the facility shall apply for,
16            certification under the United States Green
17            Building Council's Leadership in Energy Efficiency
18            Design Green Building Rating System;
19                (iii) wood pole inspection, treatment, and
20            replacement programs;
21                (iv) an estimated $200,000,000 for reducing
22            the susceptibility of certain circuits to
23            storm-related damage, including, but not limited
24            to, high winds, thunderstorms, and ice storms;
25            improvements may include, but are not limited to,
26            overhead to underground conversion and other

 

 

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1            engineered outcomes for circuits; the
2            participating utility shall prioritize the
3            selection of circuits based on each circuit's
4            historical susceptibility to storm-related damage
5            and the ability to provide the greatest customer
6            benefit upon completion of the improvements; to be
7            eligible for improvement, the participating
8            utility's ability to maintain proper tree
9            clearances surrounding the overhead circuit must
10            not have been impeded by third parties; and
11            (B) over a 10-year period, invest an estimated
12        $1,300,000,000 to upgrade and modernize its
13        transmission and distribution infrastructure and in
14        Smart Grid electric system upgrades, including, but
15        not limited to:
16                (i) additional smart meters;
17                (ii) distribution automation;
18                (iii) associated cyber secure data
19            communication network; and
20                (iv) substation micro-processor relay
21            upgrades.
22        (2) Beginning no later than 180 days after a
23    participating utility that is a combination utility files a
24    performance-based formula rate tariff pursuant to
25    subsection (c) of this Section, or, beginning no later than
26    January 1, 2012 if such utility files such

 

 

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1    performance-based formula rate tariff within 14 days of
2    October 26, 2011 (the effective date of Public Act 97-616),
3    the participating utility shall, except as provided in
4    subsection (b-5):
5            (A) over a 10-year period, invest an estimated
6        $265,000,000 in electric system upgrades,
7        modernization projects, and training facilities,
8        including, but not limited to:
9                (i) distribution infrastructure improvements
10            totaling an estimated $245,000,000, which may
11            include bulk supply substations, transformers,
12            reconductoring, and rebuilding overhead
13            distribution and sub-transmission lines,
14            underground residential distribution cable
15            injection and replacement and mainline cable
16            system refurbishment and replacement projects;
17                (ii) training facility construction or upgrade
18            projects totaling an estimated $1,000,000; any
19            such new facility must be designed for the purpose
20            of obtaining, and the owner of the facility shall
21            apply for, certification under the United States
22            Green Building Council's Leadership in Energy
23            Efficiency Design Green Building Rating System;
24            and
25                (iii) wood pole inspection, treatment, and
26            replacement programs; and

 

 

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1            (B) over a 10-year period, invest an estimated
2        $360,000,000 to upgrade and modernize its transmission
3        and distribution infrastructure and in Smart Grid
4        electric system upgrades, including, but not limited
5        to:
6                (i) additional smart meters;
7                (ii) distribution automation;
8                (iii) associated cyber secure data
9            communication network; and
10                (iv) substation micro-processor relay
11            upgrades.
12    For purposes of this Section, "Smart Grid electric system
13upgrades" shall have the meaning set forth in subsection (a) of
14Section 16-108.6 of this Act.
15    The investments in the infrastructure investment program
16described in this subsection (b) shall be incremental to the
17participating utility's annual capital investment program, as
18defined by, for purposes of this subsection (b), the
19participating utility's average capital spend for calendar
20years 2008, 2009, and 2010 as reported in the applicable
21Federal Energy Regulatory Commission (FERC) Form 1; provided
22that where one or more utilities have merged, the average
23capital spend shall be determined using the aggregate of the
24merged utilities' capital spend reported in FERC Form 1 for the
25years 2008, 2009, and 2010. A participating utility may add
26reasonable construction ramp-up and ramp-down time to the

 

 

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1investment periods specified in this subsection (b). For each
2such investment period, the ramp-up and ramp-down time shall
3not exceed a total of 6 months.
4    Within 60 days after filing a tariff under subsection (c)
5of this Section, a participating utility shall submit to the
6Commission its plan, including scope, schedule, and staffing,
7for satisfying its infrastructure investment program
8commitments pursuant to this subsection (b). The submitted plan
9shall include a schedule and staffing plan for the next
10calendar year. The plan shall also include a plan for the
11creation, operation, and administration of a Smart Grid test
12bed as described in subsection (c) of Section 16-108.8. The
13plan need not allocate the work equally over the respective
14periods, but should allocate material increments throughout
15such periods commensurate with the work to be undertaken. No
16later than April 1 of each subsequent year, the utility shall
17submit to the Commission a report that includes any updates to
18the plan, a schedule for the next calendar year, the
19expenditures made for the prior calendar year and cumulatively,
20and the number of full-time equivalent jobs created for the
21prior calendar year and cumulatively. If the utility is
22materially deficient in satisfying a schedule or staffing plan,
23then the report must also include a corrective action plan to
24address the deficiency. The fact that the plan, implementation
25of the plan, or a schedule changes shall not imply the
26imprudence or unreasonableness of the infrastructure

 

 

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1investment program, plan, or schedule. Further, no later than
245 days following the last day of the first, second, and third
3quarters of each year of the plan, a participating utility
4shall submit to the Commission a verified quarterly report for
5the prior quarter that includes (i) the total number of
6full-time equivalent jobs created during the prior quarter,
7(ii) the total number of employees as of the last day of the
8prior quarter, (iii) the total number of full-time equivalent
9hours in each job classification or job title, (iv) the total
10number of incremental employees and contractors in support of
11the investments undertaken pursuant to this subsection (b) for
12the prior quarter, and (v) any other information that the
13Commission may require by rule.
14    With respect to the participating utility's peak job
15commitment, if, after considering the utility's corrective
16action plan and compliance thereunder, the Commission enters an
17order finding, after notice and hearing, that a participating
18utility did not satisfy its peak job commitment described in
19this subsection (b) for reasons that are reasonably within its
20control, then the Commission shall also determine, after
21consideration of the evidence, including, but not limited to,
22evidence submitted by the Department of Commerce and Economic
23Opportunity and the utility, the deficiency in the number of
24full-time equivalent jobs during the peak program year due to
25such failure. The Commission shall notify the Department of any
26proceeding that is initiated pursuant to this paragraph. For

 

 

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1each full-time equivalent job deficiency during the peak
2program year that the Commission finds as set forth in this
3paragraph, the participating utility shall, within 30 days
4after the entry of the Commission's order, pay $6,000 to a fund
5for training grants administered under Section 605-800 of the
6Department of Commerce and Economic Opportunity Law, which
7shall not be a recoverable expense.
8    With respect to the participating utility's investment
9amount commitments, if, after considering the utility's
10corrective action plan and compliance thereunder, the
11Commission enters an order finding, after notice and hearing,
12that a participating utility is not satisfying its investment
13amount commitments described in this subsection (b), then the
14utility shall no longer be eligible to annually update the
15performance-based formula rate tariff pursuant to subsection
16(d) of this Section. In such event, the then current rates
17shall remain in effect until such time as new rates are set
18pursuant to Article IX of this Act, subject to retroactive
19adjustment, with interest, to reconcile rates charged with
20actual costs.
21    If the Commission finds that a participating utility is no
22longer eligible to update the performance-based formula rate
23tariff pursuant to subsection (d) of this Section, or the
24performance-based formula rate is otherwise terminated, then
25the participating utility's voluntary commitments and
26obligations under this subsection (b) shall immediately

 

 

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1terminate, except for the utility's obligation to pay an amount
2already owed to the fund for training grants pursuant to a
3Commission order.
4    In meeting the obligations of this subsection (b), to the
5extent feasible and consistent with State and federal law, the
6investments under the infrastructure investment program should
7provide employment opportunities for all segments of the
8population and workforce, including minority-owned and
9female-owned business enterprises, and shall not, consistent
10with State and federal law, discriminate based on race or
11socioeconomic status.
12    (b-5) Nothing in this Section shall prohibit the Commission
13from investigating the prudence and reasonableness of the
14expenditures made under the infrastructure investment program
15during the annual review required by subsection (d) of this
16Section and shall, as part of such investigation, determine
17whether the utility's actual costs under the program are
18prudent and reasonable. The fact that a participating utility
19invests more than the minimum amounts specified in subsection
20(b) of this Section or its plan shall not imply imprudence or
21unreasonableness.
22    If the participating utility finds that it is implementing
23its plan for satisfying the infrastructure investment program
24commitments described in subsection (b) of this Section at a
25cost below the estimated amounts specified in subsection (b) of
26this Section, then the utility may file a petition with the

 

 

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1Commission requesting that it be permitted to satisfy its
2commitments by spending less than the estimated amounts
3specified in subsection (b) of this Section. The Commission
4shall, after notice and hearing, enter its order approving, or
5approving as modified, or denying each such petition within 150
6days after the filing of the petition.
7    In no event, absent General Assembly approval, shall the
8capital investment costs incurred by a participating utility
9other than a combination utility in satisfying its
10infrastructure investment program commitments described in
11subsection (b) of this Section exceed $3,000,000,000 or, for a
12participating utility that is a combination utility,
13$720,000,000. If the participating utility's updated cost
14estimates for satisfying its infrastructure investment program
15commitments described in subsection (b) of this Section exceed
16the limitation imposed by this subsection (b-5), then it shall
17submit a report to the Commission that identifies the increased
18costs and explains the reason or reasons for the increased
19costs no later than the year in which the utility estimates it
20will exceed the limitation. The Commission shall review the
21report and shall, within 90 days after the participating
22utility files the report, report to the General Assembly its
23findings regarding the participating utility's report. If the
24General Assembly does not amend the limitation imposed by this
25subsection (b-5), then the utility may modify its plan so as
26not to exceed the limitation imposed by this subsection (b-5)

 

 

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1and may propose corresponding changes to the metrics
2established pursuant to subparagraphs (5) through (8) of
3subsection (f) of this Section, and the Commission may modify
4the metrics and incremental savings goals established pursuant
5to subsection (f) of this Section accordingly.
6    (b-10) All participating utilities shall make
7contributions for an energy low-income and support program in
8accordance with this subsection. Beginning no later than 180
9days after a participating utility files a performance-based
10formula rate tariff pursuant to subsection (c) of this Section,
11or beginning no later than January 1, 2012 if such utility
12files such performance-based formula rate tariff within 14 days
13of December 30, 2011 (the effective date of Public Act 97-646),
14and without obtaining any approvals from the Commission or any
15other agency other than as set forth in this Section,
16regardless of whether any such approval would otherwise be
17required, a participating utility other than a combination
18utility shall pay $10,000,000 per year for 5 years and a
19participating utility that is a combination utility shall pay
20$1,000,000 per year for 10 years to the energy low-income and
21support program, which is intended to fund customer assistance
22programs with the primary purpose being avoidance of imminent
23disconnection. Such programs may include:
24        (1) a residential hardship program that may partner
25    with community-based organizations, including senior
26    citizen organizations, and provides grants to low-income

 

 

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1    residential customers, including low-income senior
2    citizens, who demonstrate a hardship;
3        (2) a program that provides grants and other bill
4    payment concessions to veterans with disabilities who
5    demonstrate a hardship and members of the armed services or
6    reserve forces of the United States or members of the
7    Illinois National Guard who are on active duty pursuant to
8    an executive order of the President of the United States,
9    an act of the Congress of the United States, or an order of
10    the Governor and who demonstrate a hardship;
11        (3) a budget assistance program that provides tools and
12    education to low-income senior citizens to assist them with
13    obtaining information regarding energy usage and effective
14    means of managing energy costs;
15        (4) a non-residential special hardship program that
16    provides grants to non-residential customers such as small
17    businesses and non-profit organizations that demonstrate a
18    hardship, including those providing services to senior
19    citizen and low-income customers; and
20        (5) a performance-based assistance program that
21    provides grants to encourage residential customers to make
22    on-time payments by matching a portion of the customer's
23    payments or providing credits towards arrearages.
24    The payments made by a participating utility pursuant to
25this subsection (b-10) shall not be a recoverable expense. A
26participating utility may elect to fund either new or existing

 

 

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1customer assistance programs, including, but not limited to,
2those that are administered by the utility.
3    Programs that use funds that are provided by a
4participating utility to reduce utility bills may be
5implemented through tariffs that are filed with and reviewed by
6the Commission. If a utility elects to file tariffs with the
7Commission to implement all or a portion of the programs, those
8tariffs shall, regardless of the date actually filed, be deemed
9accepted and approved, and shall become effective on December
1030, 2011 (the effective date of Public Act 97-646). The
11participating utilities whose customers benefit from the funds
12that are disbursed as contemplated in this Section shall file
13annual reports documenting the disbursement of those funds with
14the Commission. The Commission has the authority to audit
15disbursement of the funds to ensure they were disbursed
16consistently with this Section.
17    If the Commission finds that a participating utility is no
18longer eligible to update the performance-based formula rate
19tariff pursuant to subsection (d) of this Section, or the
20performance-based formula rate is otherwise terminated, then
21the participating utility's voluntary commitments and
22obligations under this subsection (b-10) shall immediately
23terminate.
24    (b-15) Beginning in 2022, without obtaining any approvals
25from the Commission or any other agency, regardless of whether
26any such approval would otherwise be required, each

 

 

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1participating utility shall pay the following amounts, as
2applicable, to the energy low-income and support program, which
3is intended to fund customer assistance programs with the
4primary purpose being avoidance of imminent disconnection and
5reconnecting customers who have been disconnected for
6nonpayment. A participating utility other than a combination
7utility shall pay $10,000,000 per year for 10 years, and a
8participating utility that is a combination utility shall pay
9$1,000,000 per year for 10 years. Such programs may include
10those described in paragraphs (1) through (5) of subsection
11(b-10) of this Section.
12    The payments made by a participating utility pursuant to
13this subsection (b-15) shall not be a recoverable expense. A
14participating utility may elect to fund either new or existing
15customer assistance programs, including, but not limited to,
16those that are administered by the utility.
17    Programs that use funds that are provided by a
18participating utility to reduce utility bills may be
19implemented through tariffs that are filed with and reviewed by
20the Commission. If a utility elects to file tariffs with the
21Commission to implement all or a portion of the programs, those
22tariffs shall, regardless of the date actually filed, be deemed
23accepted and approved, and shall become effective on the first
24business day after they are filed. The participating utilities
25whose customers benefit from the funds that are disbursed as
26contemplated in this subsection (b-15) shall file annual

 

 

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1reports documenting the disbursement of those funds with the
2Commission. The Commission has the authority to audit
3disbursement of the funds to ensure they were disbursed
4consistently with this subsection (b-15).
5    If the Commission finds that a participating utility is no
6longer eligible to update the performance-based formula rate
7tariff pursuant to subsection (d) of this Section, or the
8performance-based formula rate is otherwise terminated, then
9the participating utility's voluntary commitments and
10obligations under this subsection (b-15) shall immediately
11terminate.
12    (c) A participating utility may elect to recover its
13delivery services costs through a performance-based formula
14rate approved by the Commission, which shall specify the cost
15components that form the basis of the rate charged to customers
16with sufficient specificity to operate in a standardized manner
17and be updated annually with transparent information that
18reflects the utility's actual costs to be recovered during the
19applicable rate year, which is the period beginning with the
20first billing day of January and extending through the last
21billing day of the following December. In the event the utility
22recovers a portion of its costs through automatic adjustment
23clause tariffs on October 26, 2011 (the effective date of
24Public Act 97-616), the utility may elect to continue to
25recover these costs through such tariffs, but then these costs
26shall not be recovered through the performance-based formula

 

 

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1rate. In the event the participating utility, prior to December
230, 2011 (the effective date of Public Act 97-646), filed
3electric delivery services tariffs with the Commission
4pursuant to Section 9-201 of this Act that are related to the
5recovery of its electric delivery services costs that are still
6pending on December 30, 2011 (the effective date of Public Act
797-646), the participating utility shall, at the time it files
8its performance-based formula rate tariff with the Commission,
9also file a notice of withdrawal with the Commission to
10withdraw the electric delivery services tariffs previously
11filed pursuant to Section 9-201 of this Act. Upon receipt of
12such notice, the Commission shall dismiss with prejudice any
13docket that had been initiated to investigate the electric
14delivery services tariffs filed pursuant to Section 9-201 of
15this Act, and such tariffs and the record related thereto shall
16not be the subject of any further hearing, investigation, or
17proceeding of any kind related to rates for electric delivery
18services.
19    The performance-based formula rate shall be implemented
20through a tariff filed with the Commission consistent with the
21provisions of this subsection (c) that shall be applicable to
22all delivery services customers. The Commission shall initiate
23and conduct an investigation of the tariff in a manner
24consistent with the provisions of this subsection (c) and the
25provisions of Article IX of this Act to the extent they do not
26conflict with this subsection (c). Except in the case where the

 

 

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1Commission finds, after notice and hearing, that a
2participating utility is not satisfying its investment amount
3commitments under subsection (b) of this Section, the
4performance-based formula rate shall remain in effect at the
5discretion of the utility. The performance-based formula rate
6approved by the Commission shall do the following:
7        (1) Provide for the recovery of the utility's actual
8    costs of delivery services that are prudently incurred and
9    reasonable in amount consistent with Commission practice
10    and law. The sole fact that a cost differs from that
11    incurred in a prior calendar year or that an investment is
12    different from that made in a prior calendar year shall not
13    imply the imprudence or unreasonableness of that cost or
14    investment.
15        (2) Reflect the utility's actual year-end capital
16    structure for the applicable calendar year, excluding
17    goodwill, subject to a determination of prudence and
18    reasonableness consistent with Commission practice and
19    law. To enable the financing of the incremental capital
20    expenditures, including regulatory assets, for electric
21    utilities that serve less than 3,000,000 retail customers
22    but more than 500,000 retail customers in the State, a
23    participating electric utility's actual year-end capital
24    structure that includes a common equity ratio, excluding
25    goodwill, of up to and including 50% of the total capital
26    structure shall be deemed reasonable and used to set rates.

 

 

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1        (3) Include a cost of equity, which shall be calculated
2    as the sum of the following:
3            (A) the average for the applicable calendar year of
4        the monthly average yields of 30-year U.S. Treasury
5        bonds published by the Board of Governors of the
6        Federal Reserve System in its weekly H.15 Statistical
7        Release or successor publication; and
8            (B) 580 basis points.
9        At such time as the Board of Governors of the Federal
10    Reserve System ceases to include the monthly average yields
11    of 30-year U.S. Treasury bonds in its weekly H.15
12    Statistical Release or successor publication, the monthly
13    average yields of the U.S. Treasury bonds then having the
14    longest duration published by the Board of Governors in its
15    weekly H.15 Statistical Release or successor publication
16    shall instead be used for purposes of this paragraph (3).
17        (4) Permit and set forth protocols, subject to a
18    determination of prudence and reasonableness consistent
19    with Commission practice and law, for the following:
20            (A) recovery of incentive compensation expense
21        that is based on the achievement of operational
22        metrics, including metrics related to budget controls,
23        outage duration and frequency, safety, customer
24        service, efficiency and productivity, and
25        environmental compliance. Incentive compensation
26        expense that is based on net income or an affiliate's

 

 

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1        earnings per share shall not be recoverable under the
2        performance-based formula rate;
3            (B) recovery of pension and other post-employment
4        benefits expense, provided that such costs are
5        supported by an actuarial study;
6            (C) recovery of severance costs, provided that if
7        the amount is over $3,700,000 for a participating
8        utility that is a combination utility or $10,000,000
9        for a participating utility that serves more than 3
10        million retail customers, then the full amount shall be
11        amortized consistent with subparagraph (F) of this
12        paragraph (4);
13            (D) investment return at a rate equal to the
14        utility's weighted average cost of long-term debt, on
15        the pension assets as, and in the amount, reported in
16        Account 186 (or in such other Account or Accounts as
17        such asset may subsequently be recorded) of the
18        utility's most recently filed FERC Form 1, net of
19        deferred tax benefits;
20            (E) recovery of the expenses related to the
21        Commission proceeding under this subsection (c) to
22        approve this performance-based formula rate and
23        initial rates or to subsequent proceedings related to
24        the formula, provided that the recovery shall be
25        amortized over a 3-year period; recovery of expenses
26        related to the annual Commission proceedings under

 

 

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1        subsection (d) of this Section to review the inputs to
2        the performance-based formula rate shall be expensed
3        and recovered through the performance-based formula
4        rate;
5            (F) amortization over a 5-year period of the full
6        amount of each charge or credit that exceeds $3,700,000
7        for a participating utility that is a combination
8        utility or $10,000,000 for a participating utility
9        that serves more than 3 million retail customers in the
10        applicable calendar year and that relates to a
11        workforce reduction program's severance costs, changes
12        in accounting rules, changes in law, compliance with
13        any Commission-initiated audit, or a single storm or
14        other similar expense, provided that any unamortized
15        balance shall be reflected in rate base. For purposes
16        of this subparagraph (F), changes in law includes any
17        enactment, repeal, or amendment in a law, ordinance,
18        rule, regulation, interpretation, permit, license,
19        consent, or order, including those relating to taxes,
20        accounting, or to environmental matters, or in the
21        interpretation or application thereof by any
22        governmental authority occurring after October 26,
23        2011 (the effective date of Public Act 97-616);
24            (G) recovery of existing regulatory assets over
25        the periods previously authorized by the Commission;
26            (H) historical weather normalized billing

 

 

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1        determinants; and
2            (I) allocation methods for common costs.
3        (5) Provide that if the participating utility's earned
4    rate of return on common equity related to the provision of
5    delivery services for the prior rate year (calculated using
6    costs and capital structure approved by the Commission as
7    provided in subparagraph (2) of this subsection (c),
8    consistent with this Section, in accordance with
9    Commission rules and orders, including, but not limited to,
10    adjustments for goodwill, and after any Commission-ordered
11    disallowances and taxes) is more than 50 basis points
12    higher than the rate of return on common equity calculated
13    pursuant to paragraph (3) of this subsection (c) (after
14    adjusting for any penalties to the rate of return on common
15    equity applied pursuant to the performance metrics
16    provision of subsection (f), (f-5), or (f-10) of this
17    Section, as applicable), then the participating utility
18    shall apply a credit through the performance-based formula
19    rate that reflects an amount equal to the value of that
20    portion of the earned rate of return on common equity that
21    is more than 50 basis points higher than the rate of return
22    on common equity calculated pursuant to paragraph (3) of
23    this subsection (c) (after adjusting for any penalties to
24    the rate of return on common equity applied pursuant to the
25    performance metrics provision of subsection (f), (f-5), or
26    (f-10) of this Section, as applicable) for the prior rate

 

 

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1    year, adjusted for taxes. If the participating utility's
2    earned rate of return on common equity related to the
3    provision of delivery services for the prior rate year
4    (calculated using costs and capital structure approved by
5    the Commission as provided in subparagraph (2) of this
6    subsection (c), consistent with this Section, in
7    accordance with Commission rules and orders, including,
8    but not limited to, adjustments for goodwill, and after any
9    Commission-ordered disallowances and taxes) is more than
10    50 basis points less than the return on common equity
11    calculated pursuant to paragraph (3) of this subsection (c)
12    (after adjusting for any penalties to the rate of return on
13    common equity applied pursuant to the performance metrics
14    provision of subsection (f), (f-5), or (f-10) of this
15    Section, as applicable), then the participating utility
16    shall apply a charge through the performance-based formula
17    rate that reflects an amount equal to the value of that
18    portion of the earned rate of return on common equity that
19    is more than 50 basis points less than the rate of return
20    on common equity calculated pursuant to paragraph (3) of
21    this subsection (c) (after adjusting for any penalties to
22    the rate of return on common equity applied pursuant to the
23    performance metrics provision of subsection (f), (f-5), or
24    (f-10) of this Section, as applicable) for the prior rate
25    year, adjusted for taxes.
26        (6) Provide for an annual reconciliation, as described

 

 

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1    in subsection (d) of this Section, with interest, of the
2    revenue requirement reflected in rates for each calendar
3    year, beginning with the calendar year in which the utility
4    files its performance-based formula rate tariff pursuant
5    to subsection (c) of this Section, with what the revenue
6    requirement would have been had the actual cost information
7    for the applicable calendar year been available at the
8    filing date.
9    The utility shall file, together with its tariff, final
10data based on its most recently filed FERC Form 1, plus
11projected plant additions and correspondingly updated
12depreciation reserve and expense for the calendar year in which
13the tariff and data are filed, that shall populate the
14performance-based formula rate and set the initial delivery
15services rates under the formula. For purposes of this Section,
16"FERC Form 1" means the Annual Report of Major Electric
17Utilities, Licensees and Others that electric utilities are
18required to file with the Federal Energy Regulatory Commission
19under the Federal Power Act, Sections 3, 4(a), 304 and 209,
20modified as necessary to be consistent with 83 Ill. Admin. Code
21Part 415 as of May 1, 2011. Nothing in this Section is intended
22to allow costs that are not otherwise recoverable to be
23recoverable by virtue of inclusion in FERC Form 1.
24    After the utility files its proposed performance-based
25formula rate structure and protocols and initial rates, the
26Commission shall initiate a docket to review the filing. The

 

 

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1Commission shall enter an order approving, or approving as
2modified, the performance-based formula rate, including the
3initial rates, as just and reasonable within 270 days after the
4date on which the tariff was filed, or, if the tariff is filed
5within 14 days after October 26, 2011 (the effective date of
6Public Act 97-616), then by May 31, 2012. Such review shall be
7based on the same evidentiary standards, including, but not
8limited to, those concerning the prudence and reasonableness of
9the costs incurred by the utility, the Commission applies in a
10hearing to review a filing for a general increase in rates
11under Article IX of this Act. The initial rates shall take
12effect within 30 days after the Commission's order approving
13the performance-based formula rate tariff.
14    Until such time as the Commission approves a different rate
15design and cost allocation pursuant to subsection (e) of this
16Section, rate design and cost allocation across customer
17classes shall be consistent with the Commission's most recent
18order regarding the participating utility's request for a
19general increase in its delivery services rates.
20    Subsequent changes to the performance-based formula rate
21structure or protocols shall be made as set forth in Section
229-201 of this Act, but nothing in this subsection (c) is
23intended to limit the Commission's authority under Article IX
24and other provisions of this Act to initiate an investigation
25of a participating utility's performance-based formula rate
26tariff, provided that any such changes shall be consistent with

 

 

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1paragraphs (1) through (6) of this subsection (c). Any change
2ordered by the Commission shall be made at the same time new
3rates take effect following the Commission's next order
4pursuant to subsection (d) of this Section, provided that the
5new rates take effect no less than 30 days after the date on
6which the Commission issues an order adopting the change.
7    A participating utility that files a tariff pursuant to
8this subsection (c) must submit a one-time $200,000 filing fee
9at the time the Chief Clerk of the Commission accepts the
10filing, which shall be a recoverable expense.
11    In the event the performance-based formula rate is
12terminated, the then current rates shall remain in effect until
13such time as new rates are set pursuant to Article IX of this
14Act, subject to retroactive rate adjustment, with interest, to
15reconcile rates charged with actual costs. At such time that
16the performance-based formula rate is terminated, the
17participating utility's voluntary commitments and obligations
18under subsection (b) of this Section shall immediately
19terminate, except for the utility's obligation to pay an amount
20already owed to the fund for training grants pursuant to a
21Commission order issued under subsection (b) of this Section.
22    (d) Subsequent to the Commission's issuance of an order
23approving the utility's performance-based formula rate
24structure and protocols, and initial rates under subsection (c)
25of this Section, the utility shall file, on or before May 1 of
26each year, with the Chief Clerk of the Commission its updated

 

 

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1cost inputs to the performance-based formula rate for the
2applicable rate year and the corresponding new charges. Each
3such filing shall conform to the following requirements and
4include the following information:
5        (1) The inputs to the performance-based formula rate
6    for the applicable rate year shall be based on final
7    historical data reflected in the utility's most recently
8    filed annual FERC Form 1 plus projected plant additions and
9    correspondingly updated depreciation reserve and expense
10    for the calendar year in which the inputs are filed. The
11    filing shall also include a reconciliation of the revenue
12    requirement that was in effect for the prior rate year (as
13    set by the cost inputs for the prior rate year) with the
14    actual revenue requirement for the prior rate year
15    (determined using a year-end rate base) that uses amounts
16    reflected in the applicable FERC Form 1 that reports the
17    actual costs for the prior rate year. Any over-collection
18    or under-collection indicated by such reconciliation shall
19    be reflected as a credit against, or recovered as an
20    additional charge to, respectively, with interest
21    calculated at a rate equal to the utility's weighted
22    average cost of capital approved by the Commission for the
23    prior rate year, the charges for the applicable rate year.
24    Provided, however, that the first such reconciliation
25    shall be for the calendar year in which the utility files
26    its performance-based formula rate tariff pursuant to

 

 

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1    subsection (c) of this Section and shall reconcile (i) the
2    revenue requirement or requirements established by the
3    rate order or orders in effect from time to time during
4    such calendar year (weighted, as applicable) with (ii) the
5    revenue requirement determined using a year-end rate base
6    for that calendar year calculated pursuant to the
7    performance-based formula rate using (A) actual costs for
8    that year as reflected in the applicable FERC Form 1, and
9    (B) for the first such reconciliation only, the cost of
10    equity, which shall be calculated as the sum of 590 basis
11    points plus the average for the applicable calendar year of
12    the monthly average yields of 30-year U.S. Treasury bonds
13    published by the Board of Governors of the Federal Reserve
14    System in its weekly H.15 Statistical Release or successor
15    publication. The first such reconciliation is not intended
16    to provide for the recovery of costs previously excluded
17    from rates based on a prior Commission order finding of
18    imprudence or unreasonableness. Each reconciliation shall
19    be certified by the participating utility in the same
20    manner that FERC Form 1 is certified. The filing shall also
21    include the charge or credit, if any, resulting from the
22    calculation required by paragraph (6) of subsection (c) of
23    this Section.
24        Notwithstanding anything that may be to the contrary,
25    the intent of the reconciliation is to ultimately reconcile
26    the revenue requirement reflected in rates for each

 

 

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1    calendar year, beginning with the calendar year in which
2    the utility files its performance-based formula rate
3    tariff pursuant to subsection (c) of this Section, with
4    what the revenue requirement determined using a year-end
5    rate base for the applicable calendar year would have been
6    had the actual cost information for the applicable calendar
7    year been available at the filing date.
8        (2) The new charges shall take effect beginning on the
9    first billing day of the following January billing period
10    and remain in effect through the last billing day of the
11    next December billing period regardless of whether the
12    Commission enters upon a hearing pursuant to this
13    subsection (d).
14        (3) The filing shall include relevant and necessary
15    data and documentation for the applicable rate year that is
16    consistent with the Commission's rules applicable to a
17    filing for a general increase in rates or any rules adopted
18    by the Commission to implement this Section. Normalization
19    adjustments shall not be required. Notwithstanding any
20    other provision of this Section or Act or any rule or other
21    requirement adopted by the Commission, a participating
22    utility that is a combination utility with more than one
23    rate zone shall not be required to file a separate set of
24    such data and documentation for each rate zone and may
25    combine such data and documentation into a single set of
26    schedules.

 

 

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1    Within 45 days after the utility files its annual update of
2cost inputs to the performance-based formula rate, the
3Commission shall have the authority, either upon complaint or
4its own initiative, but with reasonable notice, to enter upon a
5hearing concerning the prudence and reasonableness of the costs
6incurred by the utility to be recovered during the applicable
7rate year that are reflected in the inputs to the
8performance-based formula rate derived from the utility's FERC
9Form 1. During the course of the hearing, each objection shall
10be stated with particularity and evidence provided in support
11thereof, after which the utility shall have the opportunity to
12rebut the evidence. Discovery shall be allowed consistent with
13the Commission's Rules of Practice, which Rules shall be
14enforced by the Commission or the assigned administrative law
15judge. The Commission shall apply the same evidentiary
16standards, including, but not limited to, those concerning the
17prudence and reasonableness of the costs incurred by the
18utility, in the hearing as it would apply in a hearing to
19review a filing for a general increase in rates under Article
20IX of this Act. The Commission shall not, however, have the
21authority in a proceeding under this subsection (d) to consider
22or order any changes to the structure or protocols of the
23performance-based formula rate approved pursuant to subsection
24(c) of this Section. In a proceeding under this subsection (d),
25the Commission shall enter its order no later than the earlier
26of 240 days after the utility's filing of its annual update of

 

 

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1cost inputs to the performance-based formula rate or December
231. The Commission's determinations of the prudence and
3reasonableness of the costs incurred for the applicable
4calendar year shall be final upon entry of the Commission's
5order and shall not be subject to reopening, reexamination, or
6collateral attack in any other Commission proceeding, case,
7docket, order, rule or regulation, provided, however, that
8nothing in this subsection (d) shall prohibit a party from
9petitioning the Commission to rehear or appeal to the courts
10the order pursuant to the provisions of this Act.
11    In the event the Commission does not, either upon complaint
12or its own initiative, enter upon a hearing within 45 days
13after the utility files the annual update of cost inputs to its
14performance-based formula rate, then the costs incurred for the
15applicable calendar year shall be deemed prudent and
16reasonable, and the filed charges shall not be subject to
17reopening, reexamination, or collateral attack in any other
18proceeding, case, docket, order, rule, or regulation.
19    A participating utility's first filing of the updated cost
20inputs, and any Commission investigation of such inputs
21pursuant to this subsection (d) shall proceed notwithstanding
22the fact that the Commission's investigation under subsection
23(c) of this Section is still pending and notwithstanding any
24other law, order, rule, or Commission practice to the contrary.
25    (e) Nothing in subsections (c) or (d) of this Section shall
26prohibit the Commission from investigating, or a participating

 

 

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1utility from filing, revenue-neutral tariff changes related to
2rate design of a performance-based formula rate that has been
3placed into effect for the utility. Following approval of a
4participating utility's performance-based formula rate tariff
5pursuant to subsection (c) of this Section, the utility shall
6make a filing with the Commission within one year after the
7effective date of the performance-based formula rate tariff
8that proposes changes to the tariff to incorporate the findings
9of any final rate design orders of the Commission applicable to
10the participating utility and entered subsequent to the
11Commission's approval of the tariff. The Commission shall,
12after notice and hearing, enter its order approving, or
13approving with modification, the proposed changes to the
14performance-based formula rate tariff within 240 days after the
15utility's filing. Following such approval, the utility shall
16make a filing with the Commission during each subsequent 3-year
17period that either proposes revenue-neutral tariff changes or
18re-files the existing tariffs without change, which shall
19present the Commission with an opportunity to suspend the
20tariffs and consider revenue-neutral tariff changes related to
21rate design.
22    (f) Within 30 days after the filing of a tariff pursuant to
23subsection (c) of this Section, each participating utility
24shall develop and file with the Commission multi-year metrics
25designed to achieve, ratably (i.e., in equal segments) over a
2610-year period, improvement over baseline performance values

 

 

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1as follows:
2        (1) Twenty percent improvement in the System Average
3    Interruption Frequency Index, using a baseline of the
4    average of the data from 2001 through 2010.
5        (2) Fifteen percent improvement in the system Customer
6    Average Interruption Duration Index, using a baseline of
7    the average of the data from 2001 through 2010.
8        (3) For a participating utility other than a
9    combination utility, 20% improvement in the System Average
10    Interruption Frequency Index for its Southern Region,
11    using a baseline of the average of the data from 2001
12    through 2010. For purposes of this paragraph (3), Southern
13    Region shall have the meaning set forth in the
14    participating utility's most recent report filed pursuant
15    to Section 16-125 of this Act.
16        (3.5) For a participating utility other than a
17    combination utility, 20% improvement in the System Average
18    Interruption Frequency Index for its Northeastern Region,
19    using a baseline of the average of the data from 2001
20    through 2010. For purposes of this paragraph (3.5),
21    Northeastern Region shall have the meaning set forth in the
22    participating utility's most recent report filed pursuant
23    to Section 16-125 of this Act.
24        (4) Seventy-five percent improvement in the total
25    number of customers who exceed the service reliability
26    targets as set forth in subparagraphs (A) through (C) of

 

 

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1    paragraph (4) of subsection (b) of 83 Ill. Admin. Code Part
2    411.140 as of May 1, 2011, using 2010 as the baseline year.
3        (5) Reduction in issuance of estimated electric bills:
4    90% improvement for a participating utility other than a
5    combination utility, and 56% improvement for a
6    participating utility that is a combination utility, using
7    a baseline of the average number of estimated bills for the
8    years 2008 through 2010.
9        (6) Consumption on inactive meters: 90% improvement
10    for a participating utility other than a combination
11    utility, and 56% improvement for a participating utility
12    that is a combination utility, using a baseline of the
13    average unbilled kilowatthours for the years 2009 and 2010.
14        (7) Unaccounted for energy: 50% improvement for a
15    participating utility other than a combination utility
16    using a baseline of the non-technical line loss unaccounted
17    for energy kilowatthours for the year 2009.
18        (8) Uncollectible expense: reduce uncollectible
19    expense by at least $30,000,000 for a participating utility
20    other than a combination utility and by at least $3,500,000
21    for a participating utility that is a combination utility,
22    using a baseline of the average uncollectible expense for
23    the years 2008 through 2010.
24        (9) Opportunities for minority-owned and female-owned
25    business enterprises: design a performance metric
26    regarding the creation of opportunities for minority-owned

 

 

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1    and female-owned business enterprises consistent with
2    State and federal law using a base performance value of the
3    percentage of the participating utility's capital
4    expenditures that were paid to minority-owned and
5    female-owned business enterprises in 2010.
6    The definitions set forth in 83 Ill. Admin. Code Part
7411.20 as of May 1, 2011 shall be used for purposes of
8calculating performance under paragraphs (1) through (3.5) of
9this subsection (f), provided, however, that the participating
10utility may exclude up to 9 extreme weather event days from
11such calculation for each year, and provided further that the
12participating utility shall exclude 9 extreme weather event
13days when calculating each year of the baseline period to the
14extent that there are 9 such days in a given year of the
15baseline period. For purposes of this Section, an extreme
16weather event day is a 24-hour calendar day (beginning at 12:00
17a.m. and ending at 11:59 p.m.) during which any weather event
18(e.g., storm, tornado) caused interruptions for 10,000 or more
19of the participating utility's customers for 3 hours or more.
20If there are more than 9 extreme weather event days in a year,
21then the utility may choose no more than 9 extreme weather
22event days to exclude, provided that the same extreme weather
23event days are excluded from each of the calculations performed
24under paragraphs (1) through (3.5) of this subsection (f).
25    The metrics shall include incremental performance goals
26for each year of the 10-year period, which shall be designed to

 

 

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1demonstrate that the utility is on track to achieve the
2performance goal in each category at the end of the 10-year
3period. The utility shall elect when the 10-year period shall
4commence for the metrics set forth in subparagraphs (1) through
5(4) and (9) of this subsection (f), provided that it begins no
6later than 14 months following the date on which the utility
7begins investing pursuant to subsection (b) of this Section,
8and when the 10-year period shall commence for the metrics set
9forth in subparagraphs (5) through (8) of this subsection (f),
10provided that it begins no later than 14 months following the
11date on which the Commission enters its order approving the
12utility's Advanced Metering Infrastructure Deployment Plan
13pursuant to subsection (c) of Section 16-108.6 of this Act.
14    The metrics and performance goals set forth in
15subparagraphs (5) through (8) of this subsection (f) are based
16on the assumptions that the participating utility may fully
17implement the technology described in subsection (b) of this
18Section, including utilizing the full functionality of such
19technology and that there is no requirement for personal
20on-site notification. If the utility is unable to meet the
21metrics and performance goals set forth in subparagraphs (5)
22through (8) of this subsection (f) for such reasons, and the
23Commission so finds after notice and hearing, then the utility
24shall be excused from compliance, but only to the limited
25extent achievement of the affected metrics and performance
26goals was hindered by the less than full implementation.

 

 

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1    (f-5) The financial penalties applicable to the metrics
2described in subparagraphs (1) through (8) of subsection (f) of
3this Section, as applicable, shall be applied through an
4adjustment to the participating utility's return on equity of
5no more than a total of 30 basis points in each of the first 3
6years, of no more than a total of 34 basis points in each of the
73 years thereafter, and of no more than a total of 38 basis
8points in each of the 4 years thereafter, as follows:
9        (1) With respect to each of the incremental annual
10    performance goals established pursuant to paragraph (1) of
11    subsection (f) of this Section,
12            (A) for each year that a participating utility
13        other than a combination utility does not achieve the
14        annual goal, the participating utility's return on
15        equity shall be reduced as follows: during years 1
16        through 3, by 5 basis points; during years 4 through 6,
17        by 6 basis points; and during years 7 through 10, by 7
18        basis points; and
19            (B) for each year that a participating utility that
20        is a combination utility does not achieve the annual
21        goal, the participating utility's return on equity
22        shall be reduced as follows: during years 1 through 3,
23        by 10 basis points; during years 4 through 6, by 12
24        basis points; and during years 7 through 10, by 14
25        basis points.
26        (2) With respect to each of the incremental annual

 

 

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1    performance goals established pursuant to paragraph (2) of
2    subsection (f) of this Section, for each year that the
3    participating utility does not achieve each such goal, the
4    participating utility's return on equity shall be reduced
5    as follows: during years 1 through 3, by 5 basis points;
6    during years 4 through 6, by 6 basis points; and during
7    years 7 through 10, by 7 basis points.
8        (3) With respect to each of the incremental annual
9    performance goals established pursuant to paragraphs (3)
10    and (3.5) of subsection (f) of this Section, for each year
11    that a participating utility other than a combination
12    utility does not achieve both such goals, the participating
13    utility's return on equity shall be reduced as follows:
14    during years 1 through 3, by 5 basis points; during years 4
15    through 6, by 6 basis points; and during years 7 through
16    10, by 7 basis points.
17        (4) With respect to each of the incremental annual
18    performance goals established pursuant to paragraph (4) of
19    subsection (f) of this Section, for each year that the
20    participating utility does not achieve each such goal, the
21    participating utility's return on equity shall be reduced
22    as follows: during years 1 through 3, by 5 basis points;
23    during years 4 through 6, by 6 basis points; and during
24    years 7 through 10, by 7 basis points.
25        (5) With respect to each of the incremental annual
26    performance goals established pursuant to subparagraph (5)

 

 

10100SB2080sam004- 40 -LRB101 11122 RJF 59369 a

1    of subsection (f) of this Section, for each year that the
2    participating utility does not achieve at least 95% of each
3    such goal, the participating utility's return on equity
4    shall be reduced by 5 basis points for each such unachieved
5    goal.
6        (6) With respect to each of the incremental annual
7    performance goals established pursuant to paragraphs (6),
8    (7), and (8) of subsection (f) of this Section, as
9    applicable, which together measure non-operational
10    customer savings and benefits relating to the
11    implementation of the Advanced Metering Infrastructure
12    Deployment Plan, as defined in Section 16-108.6 of this
13    Act, the performance under each such goal shall be
14    calculated in terms of the percentage of the goal achieved.
15    The percentage of goal achieved for each of the goals shall
16    be aggregated, and an average percentage value calculated,
17    for each year of the 10-year period. If the utility does
18    not achieve an average percentage value in a given year of
19    at least 95%, the participating utility's return on equity
20    shall be reduced by 5 basis points.
21    The financial penalties shall be applied as described in
22this subsection (f-5) for the 12-month period in which the
23deficiency occurred through a separate tariff mechanism, which
24shall be filed by the utility together with its metrics. In the
25event the formula rate tariff established pursuant to
26subsection (c) of this Section terminates, the utility's

 

 

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1obligations under subsection (f) of this Section and this
2subsection (f-5) shall also terminate, provided, however, that
3the tariff mechanism established pursuant to subsection (f) of
4this Section and this subsection (f-5) shall remain in effect
5until any penalties due and owing at the time of such
6termination are applied.
7    The Commission shall, after notice and hearing, enter an
8order within 120 days after the metrics are filed approving, or
9approving with modification, a participating utility's tariff
10or mechanism to satisfy the metrics set forth in subsection (f)
11of this Section. On June 1 of each subsequent year, each
12participating utility shall file a report with the Commission
13that includes, among other things, a description of how the
14participating utility performed under each metric and an
15identification of any extraordinary events that adversely
16impacted the utility's performance. Whenever a participating
17utility does not satisfy the metrics required pursuant to
18subsection (f) of this Section, the Commission shall, after
19notice and hearing, enter an order approving financial
20penalties in accordance with this subsection (f-5). The
21Commission-approved financial penalties shall be applied
22beginning with the next rate year. Nothing in this Section
23shall authorize the Commission to reduce or otherwise obviate
24the imposition of financial penalties for failing to achieve
25one or more of the metrics established pursuant to subparagraph
26(1) through (4) of subsection (f) of this Section.

 

 

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1    (f-10) Each applicable 10-year period previously approved
2by the Commission pursuant to subsections (f) and (f-5) of this
3Section shall be extended for an additional 10-year period that
4commences immediately after the termination of the previous
510-year period. The performance goals and financial penalties
6applicable to each year of an additional 10-year period shall
7be fixed at, and the same as, the performance goals applicable
8to year 10 that were previously approved by the Commission
9pursuant to subsections (f) and (f-5) of this Section and the
10financial penalties applicable to year 10 set forth in
11subsection (f-5) of this Section. The total amount of financial
12penalties applicable in any given year shall not exceed 38
13basis points. During the additional 10-year period, each
14participating utility shall continue to file the annual reports
15required by subsection (f-5) of this Section, and the
16requirements of subsection (f-5) related to Commission
17approval of any financial penalties shall continue to apply.
18Each participating utility's tariff or tariffs approved under
19subsection (f-5) shall remain in effect during the additional
2010-year period, and each participating utility is authorized to
21submit a compliance filing after the effective date of this
22amendatory Act of the 101st General Assembly conforming its
23tariff or tariffs to the provisions of this subsection (f-10).
24In the event the formula rate tariff established pursuant to
25subsection (c) of this Section terminates, the utility's
26obligations under this subsection (f-10) shall also terminate;

 

 

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1provided, however, that the tariff mechanism established
2pursuant to subsections (f) and (f-5) of this Section, and
3extended under this subsection (f-10), shall remain in effect
4until any penalties due and owing at the time of such
5termination are applied.
6    The metrics and performance goals set forth in
7subparagraphs (5) through (8) of subsection (f) of this
8Section, and extended under this subsection (f-10), are based
9on the assumptions that the participating utility may fully
10implement the technology described in subsection (b) of this
11Section, including utilizing the full functionality of such
12technology and that there is no requirement for personal
13on-site notification. If the utility is unable to meet the
14metrics and performance goals applicable to subparagraphs (5)
15through (8) of subsection (f) of this Section for such reasons
16during the additional 10-year period, as those metrics and
17goals are set by this subsection (f-10), and the Commission so
18finds after notice and hearing, then the utility shall be
19excused from compliance, but only to the limited extent
20achievement of the affected metrics and performance goals was
21hindered by the less than full implementation.
22    (g) On or before July 31, 2014, each participating utility
23shall file a report with the Commission that sets forth the
24average annual increase in the average amount paid per
25kilowatthour for residential eligible retail customers,
26exclusive of the effects of energy efficiency programs,

 

 

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1comparing the 12-month period ending May 31, 2012; the 12-month
2period ending May 31, 2013; and the 12-month period ending May
331, 2014. For a participating utility that is a combination
4utility with more than one rate zone, the weighted average
5aggregate increase shall be provided. The report shall be filed
6together with a statement from an independent auditor attesting
7to the accuracy of the report. The cost of the independent
8auditor shall be borne by the participating utility and shall
9not be a recoverable expense. "The average amount paid per
10kilowatthour" shall be based on the participating utility's
11tariffed rates actually in effect and shall not be calculated
12using any hypothetical rate or adjustments to actual charges
13(other than as specified for energy efficiency) as an input.
14    In the event that the average annual increase exceeds 2.5%
15as calculated pursuant to this subsection (g), then Sections
1616-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
17than this subsection, shall be inoperative as they relate to
18the utility and its service area as of the date of the report
19due to be submitted pursuant to this subsection and the utility
20shall no longer be eligible to annually update the
21performance-based formula rate tariff pursuant to subsection
22(d) of this Section. In such event, the then current rates
23shall remain in effect until such time as new rates are set
24pursuant to Article IX of this Act, subject to retroactive
25adjustment, with interest, to reconcile rates charged with
26actual costs, and the participating utility's voluntary

 

 

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1commitments and obligations under subsection (b) of this
2Section shall immediately terminate, except for the utility's
3obligation to pay an amount already owed to the fund for
4training grants pursuant to a Commission order issued under
5subsection (b) of this Section.
6    In the event that the average annual increase is 2.5% or
7less as calculated pursuant to this subsection (g), then the
8performance-based formula rate shall remain in effect as set
9forth in this Section.
10    For purposes of this Section, the amount per kilowatthour
11means the total amount paid for electric service expressed on a
12per kilowatthour basis, and the total amount paid for electric
13service includes without limitation amounts paid for supply,
14transmission, distribution, surcharges, and add-on taxes
15exclusive of any increases in taxes or new taxes imposed after
16October 26, 2011 (the effective date of Public Act 97-616). For
17purposes of this Section, "eligible retail customers" shall
18have the meaning set forth in Section 16-111.5 of this Act.
19    The fact that this Section becomes inoperative as set forth
20in this subsection shall not be construed to mean that the
21Commission may reexamine or otherwise reopen prudence or
22reasonableness determinations already made.
23    (h) By December 31, 2017, the Commission shall prepare and
24file with the General Assembly a report on the infrastructure
25program and the performance-based formula rate. The report
26shall include the change in the average amount per kilowatthour

 

 

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1paid by residential customers between June 1, 2011 and May 31,
22017. If the change in the total average rate paid exceeds 2.5%
3compounded annually, the Commission shall include in the report
4an analysis that shows the portion of the change due to the
5delivery services component and the portion of the change due
6to the supply component of the rate. The report shall include
7separate sections for each participating utility. Sections
816-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
9than this subsection (h), are inoperative after December 31,
102032 2022 for every participating utility, after which time a
11participating utility shall no longer be eligible to annually
12update the performance-based formula rate tariff pursuant to
13subsection (d) of this Section. At such time, the then current
14rates shall remain in effect until such time as new rates are
15set pursuant to Article IX of this Act, subject to retroactive
16adjustment, with interest, to reconcile rates charged with
17actual costs.
18    The fact that this Section becomes inoperative as set forth
19in this subsection shall not be construed to mean that the
20Commission may reexamine or otherwise reopen prudence or
21reasonableness determinations already made.
22    (i) While a participating utility may use, develop, and
23maintain broadband systems and the delivery of broadband
24services, voice-over-internet-protocol services,
25telecommunications services, and cable and video programming
26services for use in providing delivery services and Smart Grid

 

 

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1functionality or application to its retail customers,
2including, but not limited to, the installation,
3implementation and maintenance of Smart Grid electric system
4upgrades as defined in Section 16-108.6 of this Act, a
5participating utility is prohibited from offering to its retail
6customers broadband services or the delivery of broadband
7services, voice-over-internet-protocol services,
8telecommunications services, or cable or video programming
9services, unless they are part of a service directly related to
10delivery services or Smart Grid functionality or applications
11as defined in Section 16-108.6 of this Act, and from recovering
12the costs of such offerings from retail customers.
13    (j) Nothing in this Section is intended to legislatively
14overturn the opinion issued in Commonwealth Edison Co. v. Ill.
15Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
161-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
17Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be
18construed as creating a contract between the General Assembly
19and the participating utility, and shall not establish a
20property right in the participating utility.
21    (k) The changes made in subsections (c) and (d) of this
22Section by Public Act 98-15 are intended to be a restatement
23and clarification of existing law, and intended to give binding
24effect to the provisions of House Resolution 1157 adopted by
25the House of Representatives of the 97th General Assembly and
26Senate Resolution 821 adopted by the Senate of the 97th General

 

 

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1Assembly that are reflected in paragraph (3) of this
2subsection. In addition, Public Act 98-15 preempts and
3supersedes any final Commission orders entered in Docket Nos.
411-0721, 12-0001, 12-0293, and 12-0321 to the extent
5inconsistent with the amendatory language added to subsections
6(c) and (d).
7        (1) No earlier than 5 business days after May 22, 2013
8    (the effective date of Public Act 98-15), each
9    participating utility shall file any tariff changes
10    necessary to implement the amendatory language set forth in
11    subsections (c) and (d) of this Section by Public Act 98-15
12    and a revised revenue requirement under the participating
13    utility's performance-based formula rate. The Commission
14    shall enter a final order approving such tariff changes and
15    revised revenue requirement within 21 days after the
16    participating utility's filing.
17        (2) Notwithstanding anything that may be to the
18    contrary, a participating utility may file a tariff to
19    retroactively recover its previously unrecovered actual
20    costs of delivery service that are no longer subject to
21    recovery through a reconciliation adjustment under
22    subsection (d) of this Section. This retroactive recovery
23    shall include any derivative adjustments resulting from
24    the changes to subsections (c) and (d) of this Section by
25    Public Act 98-15. Such tariff shall allow the utility to
26    assess, on current customer bills over a period of 12

 

 

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1    monthly billing periods, a charge or credit related to
2    those unrecovered costs with interest at the utility's
3    weighted average cost of capital during the period in which
4    those costs were unrecovered. A participating utility may
5    file a tariff that implements a retroactive charge or
6    credit as described in this paragraph for amounts not
7    otherwise included in the tariff filing provided for in
8    paragraph (1) of this subsection (k). The Commission shall
9    enter a final order approving such tariff within 21 days
10    after the participating utility's filing.
11        (3) The tariff changes described in paragraphs (1) and
12    (2) of this subsection (k) shall relate only to, and be
13    consistent with, the following provisions of Public Act
14    98-15: paragraph (2) of subsection (c) regarding year-end
15    capital structure, subparagraph (D) of paragraph (4) of
16    subsection (c) regarding pension assets, and subsection
17    (d) regarding the reconciliation components related to
18    year-end rate base and interest calculated at a rate equal
19    to the utility's weighted average cost of capital.
20        (4) Nothing in this subsection is intended to effect a
21    dismissal of or otherwise affect an appeal from any final
22    Commission orders entered in Docket Nos. 11-0721, 12-0001,
23    12-0293, and 12-0321 other than to the extent of the
24    amendatory language contained in subsections (c) and (d) of
25    this Section of Public Act 98-15.
26    (l) Each participating utility shall be deemed to have been

 

 

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1in full compliance with all requirements of subsection (b) of
2this Section, subsection (c) of this Section, Section 16-108.6
3of this Act, and all Commission orders entered pursuant to
4Sections 16-108.5 and 16-108.6 of this Act, up to and including
5May 22, 2013 (the effective date of Public Act 98-15). The
6Commission shall not undertake any investigation of such
7compliance and no penalty shall be assessed or adverse action
8taken against a participating utility for noncompliance with
9Commission orders associated with subsection (b) of this
10Section, subsection (c) of this Section, and Section 16-108.6
11of this Act prior to such date. Each participating utility
12other than a combination utility shall be permitted, without
13penalty, a period of 12 months after such effective date to
14take actions required to ensure its infrastructure investment
15program is in compliance with subsection (b) of this Section
16and with Section 16-108.6 of this Act. Provided further, the
17following subparagraphs shall apply to a participating utility
18other than a combination utility:
19        (A) if the Commission has initiated a proceeding
20    pursuant to subsection (e) of Section 16-108.6 of this Act
21    that is pending as of May 22, 2013 (the effective date of
22    Public Act 98-15), then the order entered in such
23    proceeding shall, after notice and hearing, accelerate the
24    commencement of the meter deployment schedule approved in
25    the final Commission order on rehearing entered in Docket
26    No. 12-0298;

 

 

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1        (B) if the Commission has entered an order pursuant to
2    subsection (e) of Section 16-108.6 of this Act prior to May
3    22, 2013 (the effective date of Public Act 98-15) that does
4    not accelerate the commencement of the meter deployment
5    schedule approved in the final Commission order on
6    rehearing entered in Docket No. 12-0298, then the utility
7    shall file with the Commission, within 45 days after such
8    effective date, a plan for accelerating the commencement of
9    the utility's meter deployment schedule approved in the
10    final Commission order on rehearing entered in Docket No.
11    12-0298; the Commission shall reopen the proceeding in
12    which it entered its order pursuant to subsection (e) of
13    Section 16-108.6 of this Act and shall, after notice and
14    hearing, enter an amendatory order that approves or
15    approves as modified such accelerated plan within 90 days
16    after the utility's filing; or
17        (C) if the Commission has not initiated a proceeding
18    pursuant to subsection (e) of Section 16-108.6 of this Act
19    prior to May 22, 2013 (the effective date of Public Act
20    98-15), then the utility shall file with the Commission,
21    within 45 days after such effective date, a plan for
22    accelerating the commencement of the utility's meter
23    deployment schedule approved in the final Commission order
24    on rehearing entered in Docket No. 12-0298 and the
25    Commission shall, after notice and hearing, approve or
26    approve as modified such plan within 90 days after the

 

 

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1    utility's filing.
2    Any schedule for meter deployment approved by the
3Commission pursuant to this subsection (l) shall take into
4consideration procurement times for meters and other equipment
5and operational issues. Nothing in Public Act 98-15 shall
6shorten or extend the end dates for the 5-year or 10-year
7periods set forth in subsection (b) of this Section or Section
816-108.6 of this Act. Nothing in this subsection is intended to
9address whether a participating utility has, or has not,
10satisfied any or all of the metrics and performance goals
11established pursuant to subsection (f) of this Section.
12    (m) The provisions of Public Act 98-15 are severable under
13Section 1.31 of the Statute on Statutes.
14(Source: P.A. 99-143, eff. 7-27-15; 99-642, eff. 7-28-16;
1599-906, eff. 6-1-17; 100-840, eff. 8-13-18.)
 
16
Article 5.

 
17    Section 5-5. The Illinois Administrative Procedure Act is
18amended by changing Section 5-45 as follows:
 
19    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
20    Sec. 5-45. Emergency rulemaking.
21    (a) "Emergency" means the existence of any situation that
22any agency finds reasonably constitutes a threat to the public
23interest, safety, or welfare.

 

 

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1    (b) If any agency finds that an emergency exists that
2requires adoption of a rule upon fewer days than is required by
3Section 5-40 and states in writing its reasons for that
4finding, the agency may adopt an emergency rule without prior
5notice or hearing upon filing a notice of emergency rulemaking
6with the Secretary of State under Section 5-70. The notice
7shall include the text of the emergency rule and shall be
8published in the Illinois Register. Consent orders or other
9court orders adopting settlements negotiated by an agency may
10be adopted under this Section. Subject to applicable
11constitutional or statutory provisions, an emergency rule
12becomes effective immediately upon filing under Section 5-65 or
13at a stated date less than 10 days thereafter. The agency's
14finding and a statement of the specific reasons for the finding
15shall be filed with the rule. The agency shall take reasonable
16and appropriate measures to make emergency rules known to the
17persons who may be affected by them.
18    (c) An emergency rule may be effective for a period of not
19longer than 150 days, but the agency's authority to adopt an
20identical rule under Section 5-40 is not precluded. No
21emergency rule may be adopted more than once in any 24-month
22period, except that this limitation on the number of emergency
23rules that may be adopted in a 24-month period does not apply
24to (i) emergency rules that make additions to and deletions
25from the Drug Manual under Section 5-5.16 of the Illinois
26Public Aid Code or the generic drug formulary under Section

 

 

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13.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
2emergency rules adopted by the Pollution Control Board before
3July 1, 1997 to implement portions of the Livestock Management
4Facilities Act, (iii) emergency rules adopted by the Illinois
5Department of Public Health under subsections (a) through (i)
6of Section 2 of the Department of Public Health Act when
7necessary to protect the public's health, (iv) emergency rules
8adopted pursuant to subsection (n) of this Section, (v)
9emergency rules adopted pursuant to subsection (o) of this
10Section, or (vi) emergency rules adopted pursuant to subsection
11(c-5) of this Section. Two or more emergency rules having
12substantially the same purpose and effect shall be deemed to be
13a single rule for purposes of this Section.
14    (c-5) To facilitate the maintenance of the program of group
15health benefits provided to annuitants, survivors, and retired
16employees under the State Employees Group Insurance Act of
171971, rules to alter the contributions to be paid by the State,
18annuitants, survivors, retired employees, or any combination
19of those entities, for that program of group health benefits,
20shall be adopted as emergency rules. The adoption of those
21rules shall be considered an emergency and necessary for the
22public interest, safety, and welfare.
23    (d) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 1999 budget,
25emergency rules to implement any provision of Public Act 90-587
26or 90-588 or any other budget initiative for fiscal year 1999

 

 

10100SB2080sam004- 55 -LRB101 11122 RJF 59369 a

1may be adopted in accordance with this Section by the agency
2charged with administering that provision or initiative,
3except that the 24-month limitation on the adoption of
4emergency rules and the provisions of Sections 5-115 and 5-125
5do not apply to rules adopted under this subsection (d). The
6adoption of emergency rules authorized by this subsection (d)
7shall be deemed to be necessary for the public interest,
8safety, and welfare.
9    (e) In order to provide for the expeditious and timely
10implementation of the State's fiscal year 2000 budget,
11emergency rules to implement any provision of Public Act 91-24
12or any other budget initiative for fiscal year 2000 may be
13adopted in accordance with this Section by the agency charged
14with administering that provision or initiative, except that
15the 24-month limitation on the adoption of emergency rules and
16the provisions of Sections 5-115 and 5-125 do not apply to
17rules adopted under this subsection (e). The adoption of
18emergency rules authorized by this subsection (e) shall be
19deemed to be necessary for the public interest, safety, and
20welfare.
21    (f) In order to provide for the expeditious and timely
22implementation of the State's fiscal year 2001 budget,
23emergency rules to implement any provision of Public Act 91-712
24or any other budget initiative for fiscal year 2001 may be
25adopted in accordance with this Section by the agency charged
26with administering that provision or initiative, except that

 

 

10100SB2080sam004- 56 -LRB101 11122 RJF 59369 a

1the 24-month limitation on the adoption of emergency rules and
2the provisions of Sections 5-115 and 5-125 do not apply to
3rules adopted under this subsection (f). The adoption of
4emergency rules authorized by this subsection (f) shall be
5deemed to be necessary for the public interest, safety, and
6welfare.
7    (g) In order to provide for the expeditious and timely
8implementation of the State's fiscal year 2002 budget,
9emergency rules to implement any provision of Public Act 92-10
10or any other budget initiative for fiscal year 2002 may be
11adopted in accordance with this Section by the agency charged
12with administering that provision or initiative, except that
13the 24-month limitation on the adoption of emergency rules and
14the provisions of Sections 5-115 and 5-125 do not apply to
15rules adopted under this subsection (g). The adoption of
16emergency rules authorized by this subsection (g) shall be
17deemed to be necessary for the public interest, safety, and
18welfare.
19    (h) In order to provide for the expeditious and timely
20implementation of the State's fiscal year 2003 budget,
21emergency rules to implement any provision of Public Act 92-597
22or any other budget initiative for fiscal year 2003 may be
23adopted in accordance with this Section by the agency charged
24with administering that provision or initiative, except that
25the 24-month limitation on the adoption of emergency rules and
26the provisions of Sections 5-115 and 5-125 do not apply to

 

 

10100SB2080sam004- 57 -LRB101 11122 RJF 59369 a

1rules adopted under this subsection (h). The adoption of
2emergency rules authorized by this subsection (h) shall be
3deemed to be necessary for the public interest, safety, and
4welfare.
5    (i) In order to provide for the expeditious and timely
6implementation of the State's fiscal year 2004 budget,
7emergency rules to implement any provision of Public Act 93-20
8or any other budget initiative for fiscal year 2004 may be
9adopted in accordance with this Section by the agency charged
10with administering that provision or initiative, except that
11the 24-month limitation on the adoption of emergency rules and
12the provisions of Sections 5-115 and 5-125 do not apply to
13rules adopted under this subsection (i). The adoption of
14emergency rules authorized by this subsection (i) shall be
15deemed to be necessary for the public interest, safety, and
16welfare.
17    (j) In order to provide for the expeditious and timely
18implementation of the provisions of the State's fiscal year
192005 budget as provided under the Fiscal Year 2005 Budget
20Implementation (Human Services) Act, emergency rules to
21implement any provision of the Fiscal Year 2005 Budget
22Implementation (Human Services) Act may be adopted in
23accordance with this Section by the agency charged with
24administering that provision, except that the 24-month
25limitation on the adoption of emergency rules and the
26provisions of Sections 5-115 and 5-125 do not apply to rules

 

 

10100SB2080sam004- 58 -LRB101 11122 RJF 59369 a

1adopted under this subsection (j). The Department of Public Aid
2may also adopt rules under this subsection (j) necessary to
3administer the Illinois Public Aid Code and the Children's
4Health Insurance Program Act. The adoption of emergency rules
5authorized by this subsection (j) shall be deemed to be
6necessary for the public interest, safety, and welfare.
7    (k) In order to provide for the expeditious and timely
8implementation of the provisions of the State's fiscal year
92006 budget, emergency rules to implement any provision of
10Public Act 94-48 or any other budget initiative for fiscal year
112006 may be adopted in accordance with this Section by the
12agency charged with administering that provision or
13initiative, except that the 24-month limitation on the adoption
14of emergency rules and the provisions of Sections 5-115 and
155-125 do not apply to rules adopted under this subsection (k).
16The Department of Healthcare and Family Services may also adopt
17rules under this subsection (k) necessary to administer the
18Illinois Public Aid Code, the Senior Citizens and Persons with
19Disabilities Property Tax Relief Act, the Senior Citizens and
20Disabled Persons Prescription Drug Discount Program Act (now
21the Illinois Prescription Drug Discount Program Act), and the
22Children's Health Insurance Program Act. The adoption of
23emergency rules authorized by this subsection (k) shall be
24deemed to be necessary for the public interest, safety, and
25welfare.
26    (l) In order to provide for the expeditious and timely

 

 

10100SB2080sam004- 59 -LRB101 11122 RJF 59369 a

1implementation of the provisions of the State's fiscal year
22007 budget, the Department of Healthcare and Family Services
3may adopt emergency rules during fiscal year 2007, including
4rules effective July 1, 2007, in accordance with this
5subsection to the extent necessary to administer the
6Department's responsibilities with respect to amendments to
7the State plans and Illinois waivers approved by the federal
8Centers for Medicare and Medicaid Services necessitated by the
9requirements of Title XIX and Title XXI of the federal Social
10Security Act. The adoption of emergency rules authorized by
11this subsection (l) shall be deemed to be necessary for the
12public interest, safety, and welfare.
13    (m) In order to provide for the expeditious and timely
14implementation of the provisions of the State's fiscal year
152008 budget, the Department of Healthcare and Family Services
16may adopt emergency rules during fiscal year 2008, including
17rules effective July 1, 2008, in accordance with this
18subsection to the extent necessary to administer the
19Department's responsibilities with respect to amendments to
20the State plans and Illinois waivers approved by the federal
21Centers for Medicare and Medicaid Services necessitated by the
22requirements of Title XIX and Title XXI of the federal Social
23Security Act. The adoption of emergency rules authorized by
24this subsection (m) shall be deemed to be necessary for the
25public interest, safety, and welfare.
26    (n) In order to provide for the expeditious and timely

 

 

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1implementation of the provisions of the State's fiscal year
22010 budget, emergency rules to implement any provision of
3Public Act 96-45 or any other budget initiative authorized by
4the 96th General Assembly for fiscal year 2010 may be adopted
5in accordance with this Section by the agency charged with
6administering that provision or initiative. The adoption of
7emergency rules authorized by this subsection (n) shall be
8deemed to be necessary for the public interest, safety, and
9welfare. The rulemaking authority granted in this subsection
10(n) shall apply only to rules promulgated during Fiscal Year
112010.
12    (o) In order to provide for the expeditious and timely
13implementation of the provisions of the State's fiscal year
142011 budget, emergency rules to implement any provision of
15Public Act 96-958 or any other budget initiative authorized by
16the 96th General Assembly for fiscal year 2011 may be adopted
17in accordance with this Section by the agency charged with
18administering that provision or initiative. The adoption of
19emergency rules authorized by this subsection (o) is deemed to
20be necessary for the public interest, safety, and welfare. The
21rulemaking authority granted in this subsection (o) applies
22only to rules promulgated on or after July 1, 2010 (the
23effective date of Public Act 96-958) through June 30, 2011.
24    (p) In order to provide for the expeditious and timely
25implementation of the provisions of Public Act 97-689,
26emergency rules to implement any provision of Public Act 97-689

 

 

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1may be adopted in accordance with this subsection (p) by the
2agency charged with administering that provision or
3initiative. The 150-day limitation of the effective period of
4emergency rules does not apply to rules adopted under this
5subsection (p), and the effective period may continue through
6June 30, 2013. The 24-month limitation on the adoption of
7emergency rules does not apply to rules adopted under this
8subsection (p). The adoption of emergency rules authorized by
9this subsection (p) is deemed to be necessary for the public
10interest, safety, and welfare.
11    (q) In order to provide for the expeditious and timely
12implementation of the provisions of Articles 7, 8, 9, 11, and
1312 of Public Act 98-104, emergency rules to implement any
14provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
15may be adopted in accordance with this subsection (q) by the
16agency charged with administering that provision or
17initiative. The 24-month limitation on the adoption of
18emergency rules does not apply to rules adopted under this
19subsection (q). The adoption of emergency rules authorized by
20this subsection (q) is deemed to be necessary for the public
21interest, safety, and welfare.
22    (r) In order to provide for the expeditious and timely
23implementation of the provisions of Public Act 98-651,
24emergency rules to implement Public Act 98-651 may be adopted
25in accordance with this subsection (r) by the Department of
26Healthcare and Family Services. The 24-month limitation on the

 

 

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1adoption of emergency rules does not apply to rules adopted
2under this subsection (r). The adoption of emergency rules
3authorized by this subsection (r) is deemed to be necessary for
4the public interest, safety, and welfare.
5    (s) In order to provide for the expeditious and timely
6implementation of the provisions of Sections 5-5b.1 and 5A-2 of
7the Illinois Public Aid Code, emergency rules to implement any
8provision of Section 5-5b.1 or Section 5A-2 of the Illinois
9Public Aid Code may be adopted in accordance with this
10subsection (s) by the Department of Healthcare and Family
11Services. The rulemaking authority granted in this subsection
12(s) shall apply only to those rules adopted prior to July 1,
132015. Notwithstanding any other provision of this Section, any
14emergency rule adopted under this subsection (s) shall only
15apply to payments made for State fiscal year 2015. The adoption
16of emergency rules authorized by this subsection (s) is deemed
17to be necessary for the public interest, safety, and welfare.
18    (t) In order to provide for the expeditious and timely
19implementation of the provisions of Article II of Public Act
2099-6, emergency rules to implement the changes made by Article
21II of Public Act 99-6 to the Emergency Telephone System Act may
22be adopted in accordance with this subsection (t) by the
23Department of State Police. The rulemaking authority granted in
24this subsection (t) shall apply only to those rules adopted
25prior to July 1, 2016. The 24-month limitation on the adoption
26of emergency rules does not apply to rules adopted under this

 

 

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1subsection (t). The adoption of emergency rules authorized by
2this subsection (t) is deemed to be necessary for the public
3interest, safety, and welfare.
4    (u) In order to provide for the expeditious and timely
5implementation of the provisions of the Burn Victims Relief
6Act, emergency rules to implement any provision of the Act may
7be adopted in accordance with this subsection (u) by the
8Department of Insurance. The rulemaking authority granted in
9this subsection (u) shall apply only to those rules adopted
10prior to December 31, 2015. The adoption of emergency rules
11authorized by this subsection (u) is deemed to be necessary for
12the public interest, safety, and welfare.
13    (v) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 99-516,
15emergency rules to implement Public Act 99-516 may be adopted
16in accordance with this subsection (v) by the Department of
17Healthcare and Family Services. The 24-month limitation on the
18adoption of emergency rules does not apply to rules adopted
19under this subsection (v). The adoption of emergency rules
20authorized by this subsection (v) is deemed to be necessary for
21the public interest, safety, and welfare.
22    (w) In order to provide for the expeditious and timely
23implementation of the provisions of Public Act 99-796,
24emergency rules to implement the changes made by Public Act
2599-796 may be adopted in accordance with this subsection (w) by
26the Adjutant General. The adoption of emergency rules

 

 

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1authorized by this subsection (w) is deemed to be necessary for
2the public interest, safety, and welfare.
3    (x) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 99-906,
5emergency rules to implement subsection (i) of Section 16-115D,
6subsection (g) of Section 16-128A, and subsection (a) of
7Section 16-128B of the Public Utilities Act may be adopted in
8accordance with this subsection (x) by the Illinois Commerce
9Commission. The rulemaking authority granted in this
10subsection (x) shall apply only to those rules adopted within
11180 days after June 1, 2017 (the effective date of Public Act
1299-906). The adoption of emergency rules authorized by this
13subsection (x) is deemed to be necessary for the public
14interest, safety, and welfare.
15    (y) In order to provide for the expeditious and timely
16implementation of the provisions of Public Act 100-23,
17emergency rules to implement the changes made by Public Act
18100-23 to Section 4.02 of the Illinois Act on the Aging,
19Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
20Section 55-30 of the Alcoholism and Other Drug Abuse and
21Dependency Act, and Sections 74 and 75 of the Mental Health and
22Developmental Disabilities Administrative Act may be adopted
23in accordance with this subsection (y) by the respective
24Department. The adoption of emergency rules authorized by this
25subsection (y) is deemed to be necessary for the public
26interest, safety, and welfare.

 

 

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1    (z) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 100-554,
3emergency rules to implement the changes made by Public Act
4100-554 to Section 4.7 of the Lobbyist Registration Act may be
5adopted in accordance with this subsection (z) by the Secretary
6of State. The adoption of emergency rules authorized by this
7subsection (z) is deemed to be necessary for the public
8interest, safety, and welfare.
9    (aa) In order to provide for the expeditious and timely
10initial implementation of the changes made to Articles 5, 5A,
1112, and 14 of the Illinois Public Aid Code under the provisions
12of Public Act 100-581, the Department of Healthcare and Family
13Services may adopt emergency rules in accordance with this
14subsection (aa). The 24-month limitation on the adoption of
15emergency rules does not apply to rules to initially implement
16the changes made to Articles 5, 5A, 12, and 14 of the Illinois
17Public Aid Code adopted under this subsection (aa). The
18adoption of emergency rules authorized by this subsection (aa)
19is deemed to be necessary for the public interest, safety, and
20welfare.
21    (bb) In order to provide for the expeditious and timely
22implementation of the provisions of Public Act 100-587,
23emergency rules to implement the changes made by Public Act
24100-587 to Section 4.02 of the Illinois Act on the Aging,
25Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
26subsection (b) of Section 55-30 of the Alcoholism and Other

 

 

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1Drug Abuse and Dependency Act, Section 5-104 of the Specialized
2Mental Health Rehabilitation Act of 2013, and Section 75 and
3subsection (b) of Section 74 of the Mental Health and
4Developmental Disabilities Administrative Act may be adopted
5in accordance with this subsection (bb) by the respective
6Department. The adoption of emergency rules authorized by this
7subsection (bb) is deemed to be necessary for the public
8interest, safety, and welfare.
9    (cc) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-587,
11emergency rules may be adopted in accordance with this
12subsection (cc) to implement the changes made by Public Act
13100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
14Pension Code by the Board created under Article 14 of the Code;
15Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
16the Board created under Article 15 of the Code; and Sections
1716-190.5 and 16-190.6 of the Illinois Pension Code by the Board
18created under Article 16 of the Code. The adoption of emergency
19rules authorized by this subsection (cc) is deemed to be
20necessary for the public interest, safety, and welfare.
21    (dd) In order to provide for the expeditious and timely
22implementation of the provisions of Public Act 100-864,
23emergency rules to implement the changes made by Public Act
24100-864 to Section 3.35 of the Newborn Metabolic Screening Act
25may be adopted in accordance with this subsection (dd) by the
26Secretary of State. The adoption of emergency rules authorized

 

 

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1by this subsection (dd) is deemed to be necessary for the
2public interest, safety, and welfare.
3    (ee) In order to provide for the expeditious and timely
4implementation of the provisions of this amendatory Act of the
5100th General Assembly, emergency rules implementing the
6Illinois Underground Natural Gas Storage Safety Act may be
7adopted in accordance with this subsection by the Department of
8Natural Resources. The adoption of emergency rules authorized
9by this subsection is deemed to be necessary for the public
10interest, safety, and welfare.
11    (ff) In order to provide for the expeditious and timely
12implementation of the provisions of this amendatory Act of the
13101st General Assembly, emergency rules may be adopted by the
14Department of Labor in accordance with this subsection (ff) to
15implement the changes made by this amendatory Act of the 101st
16General Assembly to the Minimum Wage Law. The adoption of
17emergency rules authorized by this subsection (ff) is deemed to
18be necessary for the public interest, safety, and welfare.
19    (gg) In order to provide for the expeditious and timely
20implementation of the provisions of this amendatory Act of the
21101st General Assembly, emergency rules to implement the
22changes to Section 16-107.5 of the Public Utilities Act may be
23adopted in accordance with this subsection by the Illinois
24Commerce Commission. The adoption of emergency rules
25authorized by this subsection is deemed to be necessary for the
26public interest, safety, and welfare.

 

 

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1(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
2100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
36-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
4100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 101-1, eff.
52-19-19.)
 
6    Section 5-10. The Illinois Enterprise Zone Act is amended
7by changing Section 5.5 as follows:
 
8    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
9    Sec. 5.5. High Impact Business.
10    (a) In order to respond to unique opportunities to assist
11in the encouragement, development, growth and expansion of the
12private sector through large scale investment and development
13projects, the Department is authorized to receive and approve
14applications for the designation of "High Impact Businesses" in
15Illinois subject to the following conditions:
16        (1) such applications may be submitted at any time
17    during the year;
18        (2) such business is not located, at the time of
19    designation, in an enterprise zone designated pursuant to
20    this Act;
21        (3) the business intends to do one or more of the
22    following:
23            (A) the business intends to make a minimum
24        investment of $12,000,000 which will be placed in

 

 

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1        service in qualified property and intends to create 500
2        full-time equivalent jobs at a designated location in
3        Illinois or intends to make a minimum investment of
4        $30,000,000 which will be placed in service in
5        qualified property and intends to retain 1,500
6        full-time retained jobs at a designated location in
7        Illinois. The business must certify in writing that the
8        investments would not be placed in service in qualified
9        property and the job creation or job retention would
10        not occur without the tax credits and exemptions set
11        forth in subsection (b) of this Section. The terms
12        "placed in service" and "qualified property" have the
13        same meanings as described in subsection (h) of Section
14        201 of the Illinois Income Tax Act; or
15            (B) the business intends to establish a new
16        electric generating facility at a designated location
17        in Illinois. "New electric generating facility", for
18        purposes of this Section, means a newly-constructed
19        electric generation plant or a newly-constructed
20        generation capacity expansion at an existing electric
21        generation plant, including the transmission lines and
22        associated equipment that transfers electricity from
23        points of supply to points of delivery, and for which
24        such new foundation construction commenced not sooner
25        than July 1, 2001. Such facility shall be designed to
26        provide baseload electric generation and shall operate

 

 

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1        on a continuous basis throughout the year; and (i)
2        shall have an aggregate rated generating capacity of at
3        least 1,000 megawatts for all new units at one site if
4        it uses natural gas as its primary fuel and foundation
5        construction of the facility is commenced on or before
6        December 31, 2004, or shall have an aggregate rated
7        generating capacity of at least 400 megawatts for all
8        new units at one site if it uses coal or gases derived
9        from coal as its primary fuel and shall support the
10        creation of at least 150 new Illinois coal mining jobs,
11        or (ii) shall be funded through a federal Department of
12        Energy grant before December 31, 2010 and shall support
13        the creation of Illinois coal-mining jobs, or (iii)
14        shall use coal gasification or integrated
15        gasification-combined cycle units that generate
16        electricity or chemicals, or both, and shall support
17        the creation of Illinois coal-mining jobs. The
18        business must certify in writing that the investments
19        necessary to establish a new electric generating
20        facility would not be placed in service and the job
21        creation in the case of a coal-fueled plant would not
22        occur without the tax credits and exemptions set forth
23        in subsection (b-5) of this Section. The term "placed
24        in service" has the same meaning as described in
25        subsection (h) of Section 201 of the Illinois Income
26        Tax Act; or

 

 

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1            (B-5) the business intends to establish a new
2        gasification facility at a designated location in
3        Illinois. As used in this Section, "new gasification
4        facility" means a newly constructed coal gasification
5        facility that generates chemical feedstocks or
6        transportation fuels derived from coal (which may
7        include, but are not limited to, methane, methanol, and
8        nitrogen fertilizer), that supports the creation or
9        retention of Illinois coal-mining jobs, and that
10        qualifies for financial assistance from the Department
11        before December 31, 2010. A new gasification facility
12        does not include a pilot project located within
13        Jefferson County or within a county adjacent to
14        Jefferson County for synthetic natural gas from coal;
15        or
16            (C) the business intends to establish production
17        operations at a new coal mine, re-establish production
18        operations at a closed coal mine, or expand production
19        at an existing coal mine at a designated location in
20        Illinois not sooner than July 1, 2001; provided that
21        the production operations result in the creation of 150
22        new Illinois coal mining jobs as described in
23        subdivision (a)(3)(B) of this Section, and further
24        provided that the coal extracted from such mine is
25        utilized as the predominant source for a new electric
26        generating facility. The business must certify in

 

 

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1        writing that the investments necessary to establish a
2        new, expanded, or reopened coal mine would not be
3        placed in service and the job creation would not occur
4        without the tax credits and exemptions set forth in
5        subsection (b-5) of this Section. The term "placed in
6        service" has the same meaning as described in
7        subsection (h) of Section 201 of the Illinois Income
8        Tax Act; or
9            (D) the business intends to construct new
10        transmission facilities or upgrade existing
11        transmission facilities at designated locations in
12        Illinois, for which construction commenced not sooner
13        than July 1, 2001. For the purposes of this Section,
14        "transmission facilities" means transmission lines
15        with a voltage rating of 115 kilovolts or above,
16        including associated equipment, that transfer
17        electricity from points of supply to points of delivery
18        and that transmit a majority of the electricity
19        generated by a new electric generating facility
20        designated as a High Impact Business in accordance with
21        this Section. The business must certify in writing that
22        the investments necessary to construct new
23        transmission facilities or upgrade existing
24        transmission facilities would not be placed in service
25        without the tax credits and exemptions set forth in
26        subsection (b-5) of this Section. The term "placed in

 

 

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1        service" has the same meaning as described in
2        subsection (h) of Section 201 of the Illinois Income
3        Tax Act; or
4            (E) the business intends to establish a new wind
5        power facility at a designated location in Illinois.
6        For purposes of this Section, "new wind power facility"
7        means a newly constructed electric generation
8        facility, or a newly constructed expansion of an
9        existing electric generation facility, placed in
10        service on or after July 1, 2009, that generates
11        electricity using wind energy devices, and such
12        facility shall be deemed to include all associated
13        transmission lines, substations, and other equipment
14        related to the generation of electricity from wind
15        energy devices. For purposes of this Section, "wind
16        energy device" means any device, with a nameplate
17        capacity of at least 0.5 megawatts, that is used in the
18        process of converting kinetic energy from the wind to
19        generate electricity; or
20            (E-5) the business intends to establish a new
21        utility-scale solar facility at a designated location
22        in Illinois. For purposes of this Section, "new
23        utility-scale solar power facility" means a newly
24        constructed electric generation facility, or a newly
25        constructed expansion of an existing electric
26        generation facility, placed in service on or after July

 

 

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1        1, 2019, that (i) generates electricity using
2        photovoltaic cells and (ii) has a nameplate capacity
3        that is greater than 2,000 kilowatts, and such facility
4        shall be deemed to include all associated transmission
5        lines, substations, and other equipment related to the
6        generation of electricity from photovoltaic cells; or
7            (F) the business commits to (i) make a minimum
8        investment of $500,000,000, which will be placed in
9        service in a qualified property, (ii) create 125
10        full-time equivalent jobs at a designated location in
11        Illinois, (iii) establish a fertilizer plant at a
12        designated location in Illinois that complies with the
13        set-back standards as described in Table 1: Initial
14        Isolation and Protective Action Distances in the 2012
15        Emergency Response Guidebook published by the United
16        States Department of Transportation, (iv) pay a
17        prevailing wage for employees at that location who are
18        engaged in construction activities, and (v) secure an
19        appropriate level of general liability insurance to
20        protect against catastrophic failure of the fertilizer
21        plant or any of its constituent systems; in addition,
22        the business must agree to enter into a construction
23        project labor agreement including provisions
24        establishing wages, benefits, and other compensation
25        for employees performing work under the project labor
26        agreement at that location; for the purposes of this

 

 

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1        Section, "fertilizer plant" means a newly constructed
2        or upgraded plant utilizing gas used in the production
3        of anhydrous ammonia and downstream nitrogen
4        fertilizer products for resale; for the purposes of
5        this Section, "prevailing wage" means the hourly cash
6        wages plus fringe benefits for training and
7        apprenticeship programs approved by the U.S.
8        Department of Labor, Bureau of Apprenticeship and
9        Training, health and welfare, insurance, vacations and
10        pensions paid generally, in the locality in which the
11        work is being performed, to employees engaged in work
12        of a similar character on public works; this paragraph
13        (F) applies only to businesses that submit an
14        application to the Department within 60 days after the
15        effective date of this amendatory Act of the 98th
16        General Assembly; and
17        (4) no later than 90 days after an application is
18    submitted, the Department shall notify the applicant of the
19    Department's determination of the qualification of the
20    proposed High Impact Business under this Section.
21    (b) Businesses designated as High Impact Businesses
22pursuant to subdivision (a)(3)(A) of this Section shall qualify
23for the credits and exemptions described in the following Acts:
24Section 9-222 and Section 9-222.1A of the Public Utilities Act,
25subsection (h) of Section 201 of the Illinois Income Tax Act,
26and Section 1d of the Retailers' Occupation Tax Act; provided

 

 

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1that these credits and exemptions described in these Acts shall
2not be authorized until the minimum investments set forth in
3subdivision (a)(3)(A) of this Section have been placed in
4service in qualified properties and, in the case of the
5exemptions described in the Public Utilities Act and Section 1d
6of the Retailers' Occupation Tax Act, the minimum full-time
7equivalent jobs or full-time retained jobs set forth in
8subdivision (a)(3)(A) of this Section have been created or
9retained. Businesses designated as High Impact Businesses
10under this Section shall also qualify for the exemption
11described in Section 5l of the Retailers' Occupation Tax Act.
12The credit provided in subsection (h) of Section 201 of the
13Illinois Income Tax Act shall be applicable to investments in
14qualified property as set forth in subdivision (a)(3)(A) of
15this Section.
16    (b-5) Businesses designated as High Impact Businesses
17pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
18and (a)(3)(D) of this Section shall qualify for the credits and
19exemptions described in the following Acts: Section 51 of the
20Retailers' Occupation Tax Act, Section 9-222 and Section
219-222.1A of the Public Utilities Act, and subsection (h) of
22Section 201 of the Illinois Income Tax Act; however, the
23credits and exemptions authorized under Section 9-222 and
24Section 9-222.1A of the Public Utilities Act, and subsection
25(h) of Section 201 of the Illinois Income Tax Act shall not be
26authorized until the new electric generating facility, the new

 

 

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1gasification facility, the new transmission facility, or the
2new, expanded, or reopened coal mine is operational, except
3that a new electric generating facility whose primary fuel
4source is natural gas is eligible only for the exemption under
5Section 5l of the Retailers' Occupation Tax Act.
6    (b-6) Businesses designated as High Impact Businesses
7pursuant to subdivision (a)(3)(E) of this Section shall qualify
8for the exemptions described in Section 5l of the Retailers'
9Occupation Tax Act; any business so designated as a High Impact
10Business being, for purposes of this Section, a "Wind Energy
11Business".
12    (c) High Impact Businesses located in federally designated
13foreign trade zones or sub-zones are also eligible for
14additional credits, exemptions and deductions as described in
15the following Acts: Section 9-221 and Section 9-222.1 of the
16Public Utilities Act; and subsection (g) of Section 201, and
17Section 203 of the Illinois Income Tax Act.
18    (d) Except for businesses contemplated under subdivision
19(a)(3)(E) of this Section, existing Illinois businesses which
20apply for designation as a High Impact Business must provide
21the Department with the prospective plan for which 1,500
22full-time retained jobs would be eliminated in the event that
23the business is not designated.
24    (e) Except for new wind power facilities contemplated under
25subdivision (a)(3)(E) of this Section, new proposed facilities
26which apply for designation as High Impact Business must

 

 

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1provide the Department with proof of alternative non-Illinois
2sites which would receive the proposed investment and job
3creation in the event that the business is not designated as a
4High Impact Business.
5    (f) Except for businesses contemplated under subdivision
6(a)(3)(E) of this Section, in the event that a business is
7designated a High Impact Business and it is later determined
8after reasonable notice and an opportunity for a hearing as
9provided under the Illinois Administrative Procedure Act, that
10the business would have placed in service in qualified property
11the investments and created or retained the requisite number of
12jobs without the benefits of the High Impact Business
13designation, the Department shall be required to immediately
14revoke the designation and notify the Director of the
15Department of Revenue who shall begin proceedings to recover
16all wrongfully exempted State taxes with interest. The business
17shall also be ineligible for all State funded Department
18programs for a period of 10 years.
19    (g) The Department shall revoke a High Impact Business
20designation if the participating business fails to comply with
21the terms and conditions of the designation. However, the
22penalties for new wind power facilities or Wind Energy
23Businesses or new utility-scale solar power facility for
24failure to comply with any of the terms or conditions of the
25Illinois Prevailing Wage Act shall be only those penalties
26identified in the Illinois Prevailing Wage Act, and the

 

 

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1Department shall not revoke a High Impact Business designation
2as a result of the failure to comply with any of the terms or
3conditions of the Illinois Prevailing Wage Act in relation to a
4new wind power facility or a Wind Energy Business or new
5utility-scale solar power facility.
6    (h) Prior to designating a business, the Department shall
7provide the members of the General Assembly and Commission on
8Government Forecasting and Accountability with a report
9setting forth the terms and conditions of the designation and
10guarantees that have been received by the Department in
11relation to the proposed business being designated.
12(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
13    Section 5-15. The Illinois Power Agency Act is amended by
14changing Sections 1-10, 1-56, and 1-75 as follows:
 
15    (20 ILCS 3855/1-10)
16    Sec. 1-10. Definitions.
17    "Agency" means the Illinois Power Agency.
18    "Agency loan agreement" means any agreement pursuant to
19which the Illinois Finance Authority agrees to loan the
20proceeds of revenue bonds issued with respect to a project to
21the Agency upon terms providing for loan repayment installments
22at least sufficient to pay when due all principal of, interest
23and premium, if any, on those revenue bonds, and providing for
24maintenance, insurance, and other matters in respect of the

 

 

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1project.
2    "Authority" means the Illinois Finance Authority.
3    "Brownfield site photovoltaic project" means photovoltaics
4that are:
5        (1) interconnected to an electric utility as defined in
6    this Section, a municipal utility as defined in this
7    Section, a public utility as defined in Section 3-105 of
8    the Public Utilities Act, or an electric cooperative, as
9    defined in Section 3-119 of the Public Utilities Act; and
10        (2) located at a site that is regulated by any of the
11    following entities under the following programs:
12            (A) the United States Environmental Protection
13        Agency under the federal Comprehensive Environmental
14        Response, Compensation, and Liability Act of 1980, as
15        amended;
16            (B) the United States Environmental Protection
17        Agency under the Corrective Action Program of the
18        federal Resource Conservation and Recovery Act, as
19        amended;
20            (C) the Illinois Environmental Protection Agency
21        under the Illinois Site Remediation Program; or
22            (D) the Illinois Environmental Protection Agency
23        under the Illinois Solid Waste Program.
24    "Clean coal facility" means an electric generating
25facility that uses primarily coal as a feedstock and that
26captures and sequesters carbon dioxide emissions at the

 

 

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1following levels: at least 50% of the total carbon dioxide
2emissions that the facility would otherwise emit if, at the
3time construction commences, the facility is scheduled to
4commence operation before 2016, at least 70% of the total
5carbon dioxide emissions that the facility would otherwise emit
6if, at the time construction commences, the facility is
7scheduled to commence operation during 2016 or 2017, and at
8least 90% of the total carbon dioxide emissions that the
9facility would otherwise emit if, at the time construction
10commences, the facility is scheduled to commence operation
11after 2017. The power block of the clean coal facility shall
12not exceed allowable emission rates for sulfur dioxide,
13nitrogen oxides, carbon monoxide, particulates and mercury for
14a natural gas-fired combined-cycle facility the same size as
15and in the same location as the clean coal facility at the time
16the clean coal facility obtains an approved air permit. All
17coal used by a clean coal facility shall have high volatile
18bituminous rank and greater than 1.7 pounds of sulfur per
19million btu content, unless the clean coal facility does not
20use gasification technology and was operating as a conventional
21coal-fired electric generating facility on June 1, 2009 (the
22effective date of Public Act 95-1027).
23    "Clean coal SNG brownfield facility" means a facility that
24(1) has commenced construction by July 1, 2015 on an urban
25brownfield site in a municipality with at least 1,000,000
26residents; (2) uses a gasification process to produce

 

 

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1substitute natural gas; (3) uses coal as at least 50% of the
2total feedstock over the term of any sourcing agreement with a
3utility and the remainder of the feedstock may be either
4petroleum coke or coal, with all such coal having a high
5bituminous rank and greater than 1.7 pounds of sulfur per
6million Btu content unless the facility reasonably determines
7that it is necessary to use additional petroleum coke to
8deliver additional consumer savings, in which case the facility
9shall use coal for at least 35% of the total feedstock over the
10term of any sourcing agreement; and (4) captures and sequesters
11at least 85% of the total carbon dioxide emissions that the
12facility would otherwise emit.
13    "Clean coal SNG facility" means a facility that uses a
14gasification process to produce substitute natural gas, that
15sequesters at least 90% of the total carbon dioxide emissions
16that the facility would otherwise emit, that uses at least 90%
17coal as a feedstock, with all such coal having a high
18bituminous rank and greater than 1.7 pounds of sulfur per
19million btu content, and that has a valid and effective permit
20to construct emission sources and air pollution control
21equipment and approval with respect to the federal regulations
22for Prevention of Significant Deterioration of Air Quality
23(PSD) for the plant pursuant to the federal Clean Air Act;
24provided, however, a clean coal SNG brownfield facility shall
25not be a clean coal SNG facility.
26    "Commission" means the Illinois Commerce Commission.

 

 

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1    "Community renewable generation project" means an electric
2generating facility that:
3        (1) is powered by wind, solar thermal energy,
4    photovoltaic cells or panels, biodiesel, crops and
5    untreated and unadulterated organic waste biomass, tree
6    waste, and hydropower that does not involve new
7    construction or significant expansion of hydropower dams;
8        (2) is interconnected at the distribution system level
9    of an electric utility as defined in this Section, a
10    municipal utility as defined in this Section that owns or
11    operates electric distribution facilities, a public
12    utility as defined in Section 3-105 of the Public Utilities
13    Act, or an electric cooperative, as defined in Section
14    3-119 of the Public Utilities Act;
15        (3) credits the value of electricity generated by the
16    facility to the subscribers of the facility; and
17        (4) is limited in nameplate capacity to less than or
18    equal to 2,000 kilowatts.
19    "Contractor" means the entity or organization with main
20responsibility for the building of a construction project and
21is the party signing the prime construction contract for the
22project.
23    "Costs incurred in connection with the development and
24construction of a facility" means:
25        (1) the cost of acquisition of all real property,
26    fixtures, and improvements in connection therewith and

 

 

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1    equipment, personal property, and other property, rights,
2    and easements acquired that are deemed necessary for the
3    operation and maintenance of the facility;
4        (2) financing costs with respect to bonds, notes, and
5    other evidences of indebtedness of the Agency;
6        (3) all origination, commitment, utilization,
7    facility, placement, underwriting, syndication, credit
8    enhancement, and rating agency fees;
9        (4) engineering, design, procurement, consulting,
10    legal, accounting, title insurance, survey, appraisal,
11    escrow, trustee, collateral agency, interest rate hedging,
12    interest rate swap, capitalized interest, contingency, as
13    required by lenders, and other financing costs, and other
14    expenses for professional services; and
15        (5) the costs of plans, specifications, site study and
16    investigation, installation, surveys, other Agency costs
17    and estimates of costs, and other expenses necessary or
18    incidental to determining the feasibility of any project,
19    together with such other expenses as may be necessary or
20    incidental to the financing, insuring, acquisition, and
21    construction of a specific project and starting up,
22    commissioning, and placing that project in operation.
23    "Delivery services" has the same definition as found in
24Section 16-102 of the Public Utilities Act.
25    "Delivery year" means the consecutive 12-month period
26beginning June 1 of a given year and ending May 31 of the

 

 

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1following year.
2    "Department" means the Department of Commerce and Economic
3Opportunity.
4    "Director" means the Director of the Illinois Power Agency.
5    "Demand-response" means measures that decrease peak
6electricity demand or shift demand from peak to off-peak
7periods.
8    "Distributed renewable energy generation device" means a
9device that is:
10        (1) powered by wind, solar thermal energy,
11    photovoltaic cells or panels, biodiesel, crops and
12    untreated and unadulterated organic waste biomass, tree
13    waste, and hydropower that does not involve new
14    construction or significant expansion of hydropower dams;
15        (2) interconnected at the distribution system level of
16    either an electric utility as defined in this Section, a
17    municipal utility as defined in this Section that owns or
18    operates electric distribution facilities, or a rural
19    electric cooperative as defined in Section 3-119 of the
20    Public Utilities Act;
21        (3) located on the customer side of the customer's
22    electric meter and is primarily used to offset that
23    customer's electricity load; and
24        (4) limited in nameplate capacity to less than or equal
25    to 2,000 kilowatts.
26    "Energy efficiency" means measures that reduce the amount

 

 

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1of electricity or natural gas consumed in order to achieve a
2given end use. "Energy efficiency" includes voltage
3optimization measures that optimize the voltage at points on
4the electric distribution voltage system and thereby reduce
5electricity consumption by electric customers' end use
6devices. "Energy efficiency" also includes measures that
7reduce the total Btus of electricity, natural gas, and other
8fuels needed to meet the end use or uses.
9    "Electric utility" has the same definition as found in
10Section 16-102 of the Public Utilities Act.
11    "Facility" means an electric generating unit or a
12co-generating unit that produces electricity along with
13related equipment necessary to connect the facility to an
14electric transmission or distribution system.
15    "Governmental aggregator" means one or more units of local
16government that individually or collectively procure
17electricity to serve residential retail electrical loads
18located within its or their jurisdiction.
19    "Index price" means the monthly average load-weighted
20day-ahead price at the ComEd or Ameren Hub.
21    "Local government" means a unit of local government as
22defined in Section 1 of Article VII of the Illinois
23Constitution.
24    "Municipality" means a city, village, or incorporated
25town.
26    "Municipal utility" means a public utility owned and

 

 

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1operated by any subdivision or municipal corporation of this
2State.
3    "Nameplate capacity" means the aggregate inverter
4nameplate capacity in kilowatts AC.
5    "Offer strike price" means the price for a renewable energy
6credit from a new utility-scale wind project or a utility-scale
7solar project resulting from a new utility-scale wind or solar
8competitive procurement.
9    "Person" means any natural person, firm, partnership,
10corporation, either domestic or foreign, company, association,
11limited liability company, joint stock company, or association
12and includes any trustee, receiver, assignee, or personal
13representative thereof.
14    "Project" means the planning, bidding, and construction of
15a facility.
16    "Project labor agreement" means a pre-hire collective
17bargaining agreement that covers all terms and conditions of
18employment on a specific construction project and must include
19the following:
20        (1) provisions establishing the minimum hourly wage
21    for each class of labor organization employee;
22        (2) provisions establishing the benefits and other
23    compensation for each class of labor organization
24    employee;
25        (3) provisions establishing that no strike or disputes
26    will be engaged in by the labor organization employees; and

 

 

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1        (4) provisions establishing that no lockout or
2    disputes will be engaged in by the contractor building the
3    project.
4    A labor organization and the contractor building the
5project shall have the authority to include other terms and
6conditions as they deem necessary.
7    "Public utility" has the same definition as found in
8Section 3-105 of the Public Utilities Act.
9    "Real property" means any interest in land together with
10all structures, fixtures, and improvements thereon, including
11lands under water and riparian rights, any easements,
12covenants, licenses, leases, rights-of-way, uses, and other
13interests, together with any liens, judgments, mortgages, or
14other claims or security interests related to real property.
15    "Renewable energy credit" means a tradable credit that
16represents the environmental attributes of one megawatt hour of
17energy produced from a renewable energy resource.
18    "Renewable energy resources" includes energy and its
19associated renewable energy credit or renewable energy credits
20from wind, solar thermal energy, photovoltaic cells and panels,
21biodiesel, anaerobic digestion, crops and untreated and
22unadulterated organic waste biomass, tree waste, and
23hydropower that does not involve new construction or
24significant expansion of hydropower dams. For purposes of this
25Act, landfill gas produced in the State is considered a
26renewable energy resource. "Renewable energy resources" does

 

 

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1not include the incineration or burning of tires, garbage,
2general household, institutional, and commercial waste,
3industrial lunchroom or office waste, landscape waste other
4than tree waste, railroad crossties, utility poles, or
5construction or demolition debris, other than untreated and
6unadulterated waste wood.
7    "Retail customer" has the same definition as found in
8Section 16-102 of the Public Utilities Act.
9    "Revenue bond" means any bond, note, or other evidence of
10indebtedness issued by the Authority, the principal and
11interest of which is payable solely from revenues or income
12derived from any project or activity of the Agency.
13    "Sequester" means permanent storage of carbon dioxide by
14injecting it into a saline aquifer, a depleted gas reservoir,
15or an oil reservoir, directly or through an enhanced oil
16recovery process that may involve intermediate storage,
17regardless of whether these activities are conducted by a clean
18coal facility, a clean coal SNG facility, a clean coal SNG
19brownfield facility, or a party with which a clean coal
20facility, clean coal SNG facility, or clean coal SNG brownfield
21facility has contracted for such purposes.
22    "Service area" has the same definition as found in Section
2316-102 of the Public Utilities Act.
24    "Sourcing agreement" means (i) in the case of an electric
25utility, an agreement between the owner of a clean coal
26facility and such electric utility, which agreement shall have

 

 

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1terms and conditions meeting the requirements of paragraph (3)
2of subsection (d) of Section 1-75, (ii) in the case of an
3alternative retail electric supplier, an agreement between the
4owner of a clean coal facility and such alternative retail
5electric supplier, which agreement shall have terms and
6conditions meeting the requirements of Section 16-115(d)(5) of
7the Public Utilities Act, and (iii) in case of a gas utility,
8an agreement between the owner of a clean coal SNG brownfield
9facility and the gas utility, which agreement shall have the
10terms and conditions meeting the requirements of subsection
11(h-1) of Section 9-220 of the Public Utilities Act.
12    "Subscriber" means a person who (i) takes delivery service
13from an electric utility, and (ii) has a subscription of no
14less than 200 watts to a community renewable generation project
15that is located in the electric utility's service area. No
16subscriber's subscriptions may total more than 40% of the
17nameplate capacity of an individual community renewable
18generation project. Entities that are affiliated by virtue of a
19common parent shall not represent multiple subscriptions that
20total more than 40% of the nameplate capacity of an individual
21community renewable generation project.
22    "Subscription" means an interest in a community renewable
23generation project expressed in kilowatts, which is sized
24primarily to offset part or all of the subscriber's electricity
25usage.
26    "Substitute natural gas" or "SNG" means a gas manufactured

 

 

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1by gasification of hydrocarbon feedstock, which is
2substantially interchangeable in use and distribution with
3conventional natural gas.
4    "Total resource cost test" or "TRC test" means a standard
5that is met if, for an investment in energy efficiency or
6demand-response measures, the benefit-cost ratio is greater
7than one. The benefit-cost ratio is the ratio of the net
8present value of the total benefits of the program to the net
9present value of the total costs as calculated over the
10lifetime of the measures. A total resource cost test compares
11the sum of avoided electric utility costs, representing the
12benefits that accrue to the system and the participant in the
13delivery of those efficiency measures and including avoided
14costs associated with reduced use of natural gas or other
15fuels, avoided costs associated with reduced water
16consumption, and avoided costs associated with reduced
17operation and maintenance costs, as well as other quantifiable
18societal benefits, to the sum of all incremental costs of
19end-use measures that are implemented due to the program
20(including both utility and participant contributions), plus
21costs to administer, deliver, and evaluate each demand-side
22program, to quantify the net savings obtained by substituting
23the demand-side program for supply resources. In calculating
24avoided costs of power and energy that an electric utility
25would otherwise have had to acquire, reasonable estimates shall
26be included of financial costs likely to be imposed by future

 

 

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1regulations and legislation on emissions of greenhouse gases.
2In discounting future societal costs and benefits for the
3purpose of calculating net present values, a societal discount
4rate based on actual, long-term Treasury bond yields should be
5used. Notwithstanding anything to the contrary, the TRC test
6shall not include or take into account a calculation of market
7price suppression effects or demand reduction induced price
8effects.
9    "Utility-scale solar project" means an electric generating
10facility that:
11        (1) generates electricity using photovoltaic cells;
12    and
13        (2) has a nameplate capacity that is greater than 2,000
14    kilowatts.
15    "Utility-scale wind project" means an electric generating
16facility that:
17        (1) generates electricity using wind; and
18        (2) has a nameplate capacity that is greater than 2,000
19    kilowatts.
20    "Variable renewable energy credit" means a renewable
21energy credit which is the difference between the offer strike
22price and the index price.
23    "Zero emission credit" means a tradable credit that
24represents the environmental attributes of one megawatt hour of
25energy produced from a zero emission facility.
26    "Zero emission facility" means a facility that: (1) is

 

 

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1fueled by nuclear power; and (2) is interconnected with PJM
2Interconnection, LLC or the Midcontinent Independent System
3Operator, Inc., or their successors.
4(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
 
5    (20 ILCS 3855/1-56)
6    Sec. 1-56. Illinois Power Agency Renewable Energy
7Resources Fund; Illinois Solar for All Program.
8    (a) The Illinois Power Agency Renewable Energy Resources
9Fund is created as a special fund in the State treasury.
10    (b) The Illinois Power Agency Renewable Energy Resources
11Fund shall be administered by the Agency as described in this
12subsection (b), provided that the changes to this subsection
13(b) made by this amendatory Act of the 99th General Assembly
14shall not interfere with existing contracts under this Section.
15        (1) The Illinois Power Agency Renewable Energy
16    Resources Fund shall be used to purchase renewable energy
17    credits according to any approved procurement plan
18    developed by the Agency prior to June 1, 2017.
19        (2) The Illinois Power Agency Renewable Energy
20    Resources Fund shall also be used to create the Illinois
21    Solar for All Program, which shall include incentives for
22    low-income distributed generation and community solar
23    projects, and other associated approved expenditures. The
24    objectives of the Illinois Solar for All Program are to
25    bring photovoltaics to low-income communities in this

 

 

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1    State in a manner that maximizes the development of new
2    photovoltaic generating facilities, to create a long-term,
3    low-income solar marketplace throughout this State, to
4    integrate, through interaction with stakeholders, with
5    existing energy efficiency initiatives, and to minimize
6    administrative costs. The Agency shall include a
7    description of its proposed approach to the design,
8    administration, implementation and evaluation of the
9    Illinois Solar for All Program, as part of the long-term
10    renewable resources procurement plan authorized by
11    subsection (c) of Section 1-75 of this Act, and the program
12    shall be designed to grow the low-income solar market. The
13    Agency or utility, as applicable, shall purchase renewable
14    energy credits from the (i) photovoltaic distributed
15    renewable energy generation projects and (ii) community
16    solar projects that are procured under procurement
17    processes authorized by the long-term renewable resources
18    procurement plans approved by the Commission.
19        The Illinois Solar for All Program shall include the
20    program offerings described in subparagraphs (A) through
21    (D) of this paragraph (2), which the Agency shall implement
22    through contracts with third-party providers and, subject
23    to appropriation, pay the approximate amounts identified
24    using monies available in the Illinois Power Agency
25    Renewable Energy Resources Fund. Each contract that
26    provides for the installation of solar facilities shall

 

 

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1    provide that the solar facilities will produce energy and
2    economic benefits, at a level determined by the Agency to
3    be reasonable, for the participating low income customers.
4    The monies available in the Illinois Power Agency Renewable
5    Energy Resources Fund and not otherwise committed to
6    contracts executed under subsection (i) of this Section
7    shall be allocated among the programs described in this
8    paragraph (2), as follows: 22.5% of these funds shall be
9    allocated to programs described in subparagraph (A) of this
10    paragraph (2), 37.5% of these funds shall be allocated to
11    programs described in subparagraph (B) of this paragraph
12    (2), 15% of these funds shall be allocated to programs
13    described in subparagraph (C) of this paragraph (2), and
14    25% of these funds, but in no event more than $50,000,000,
15    shall be allocated to programs described in subparagraph
16    (D) of this paragraph (2). The allocation of funds among
17    subparagraphs (A), (B), or (C) of this paragraph (2) may be
18    changed if the Agency or administrator, through delegated
19    authority, determines incentives in subparagraphs (A),
20    (B), or (C) of this paragraph (2) have not been adequately
21    subscribed to fully utilize the Illinois Power Agency
22    Renewable Energy Resources Fund. The determination shall
23    include input through a stakeholder process. The program
24    offerings described in subparagraphs (A) through (D) of
25    this paragraph (2) shall also be implemented through
26    contracts funded from such additional amounts as are

 

 

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1    allocated to one or more of the programs in the long-term
2    renewable resources procurement plans as specified in
3    subsection (c) of Section 1-75 of this Act and subparagraph
4    (O) of paragraph (1) of such subsection (c).
5        Contracts that will be paid with funds in the Illinois
6    Power Agency Renewable Energy Resources Fund shall be
7    executed by the Agency. Contracts that will be paid with
8    funds collected by an electric utility shall be executed by
9    the electric utility.
10        Contracts under the Illinois Solar for All Program
11    shall include an approach, as set forth in the long-term
12    renewable resources procurement plans, to ensure the
13    wholesale market value of the energy is credited to
14    participating low-income customers or organizations and to
15    ensure tangible economic benefits flow directly to program
16    participants, except in the case of low-income
17    multi-family housing where the low-income customer does
18    not directly pay for energy. Priority shall be given to
19    projects that demonstrate meaningful involvement of
20    low-income community members in designing the initial
21    proposals. Acceptable proposals to implement projects must
22    demonstrate the applicant's ability to conduct initial
23    community outreach, education, and recruitment of
24    low-income participants in the community. Projects must
25    include job training opportunities if available, and shall
26    endeavor to coordinate with the job training programs

 

 

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1    described in paragraph (1) of subsection (a) of Section
2    16-108.12 of the Public Utilities Act.
3            (A) Low-income distributed generation incentive.
4        This program will provide incentives to low-income
5        customers, either directly or through solar providers,
6        to increase the participation of low-income households
7        in photovoltaic on-site distributed generation.
8        Companies participating in this program that install
9        solar panels shall commit to hiring job trainees for a
10        portion of their low-income installations, and an
11        administrator shall facilitate partnering the
12        companies that install solar panels with entities that
13        provide solar panel installation job training. It is a
14        goal of this program that a minimum of 25% of the
15        incentives for this program be allocated to projects
16        located within environmental justice communities.
17        Contracts entered into under this paragraph may be
18        entered into with an entity that will develop and
19        administer the program and shall also include
20        contracts for renewable energy credits from the
21        photovoltaic distributed generation that is the
22        subject of the program, as set forth in the long-term
23        renewable resources procurement plan.
24            (B) Low-Income Community Solar Project Initiative.
25        Incentives shall be offered to low-income customers,
26        either directly or through developers, to increase the

 

 

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

 

 

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1        at public buildings. It is a goal of this program that
2        at least 25% of the incentives for this program be
3        allocated to projects located in environmental justice
4        communities. Contracts entered into under this
5        paragraph may be entered into with an entity that will
6        develop and administer the program or with developers
7        and shall also include contracts for renewable energy
8        credits related to the program.
9            (D) Low-Income Community Solar Pilot Projects.
10        Under this program, persons, including, but not
11        limited to, electric utilities, shall propose pilot
12        community solar projects. Community solar projects
13        proposed under this subparagraph (D) may exceed 2,000
14        kilowatts in nameplate capacity, but the amount paid
15        per project under this program may not exceed
16        $20,000,000. Pilot projects must result in economic
17        benefits for the members of the community in which the
18        project will be located. The proposed pilot project
19        must include a partnership with at least one
20        community-based organization. Approved pilot projects
21        shall be competitively bid by the Agency, subject to
22        fair and equitable guidelines developed by the Agency.
23        Funding available under this subparagraph (D) may not
24        be distributed solely to a utility, and at least some
25        funds under this subparagraph (D) must include a
26        project partnership that includes community ownership

 

 

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1        by the project subscribers. Contracts entered into
2        under this paragraph may be entered into with an entity
3        that will develop and administer the program or with
4        developers and shall also include contracts for
5        renewable energy credits related to the program. A
6        project proposed by a utility that is implemented under
7        this subparagraph (D) shall not be included in the
8        utility's ratebase.
9        The requirement that a qualified person, as defined in
10    paragraph (1) of subsection (i) of this Section, install
11    photovoltaic devices does not apply to the Illinois Solar
12    for All Program described in this subsection (b).
13        (3) Costs associated with the Illinois Solar for All
14    Program and its components described in paragraph (2) of
15    this subsection (b), including, but not limited to, costs
16    associated with procuring experts, consultants, and the
17    program administrator referenced in this subsection (b)
18    and related incremental costs, and costs related to the
19    evaluation of the Illinois Solar for All Program, may be
20    paid for using monies in the Illinois Power Agency
21    Renewable Energy Resources Fund, but the Agency or program
22    administrator shall strive to minimize costs in the
23    implementation of the program. The Agency shall purchase
24    renewable energy credits from generation that is the
25    subject of a contract under subparagraphs (A) through (D)
26    of this paragraph (2) of this subsection (b), and may pay

 

 

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1    for such renewable energy credits through an upfront
2    payment per installed kilowatt of nameplate capacity paid
3    once the device is interconnected at the distribution
4    system level of the utility and is energized. The payment
5    shall be in exchange for an assignment of all renewable
6    energy credits generated by the system during the first 15
7    years of operation and shall be structured to overcome
8    barriers to participation in the solar market by the
9    low-income community. The incentives provided for in this
10    Section may be implemented through the pricing of renewable
11    energy credits where the prices paid for the credits are
12    higher than the prices from programs offered under
13    subsection (c) of Section 1-75 of this Act to account for
14    the incentives. If the prices paid for renewable energy
15    credits under this Section are higher than the prices paid
16    from programs offered under subsection (c) of Section 1-75
17    of this Act, then the average difference in price for a
18    comparable product shall not count toward the limitation or
19    reduction found in subparagraph (E) of paragraph (1) of
20    subsection (c) of Section 1-75 of this Act. The Agency
21    shall ensure collaboration with community agencies, and
22    allocate up to 5% of the funds available under the Illinois
23    Solar for All Program to community-based groups to assist
24    in grassroots education efforts related to the Illinois
25    Solar for All Program. The Agency shall retire any
26    renewable energy credits purchased from this program and

 

 

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1    the credits shall count towards the obligation under
2    subsection (c) of Section 1-75 of this Act for the electric
3    utility to which the project is interconnected.
4        (4) The Agency shall, consistent with the requirements
5    of this subsection (b), propose the Illinois Solar for All
6    Program terms, conditions, and requirements, including the
7    prices to be paid for renewable energy credits, and which
8    prices may be determined through a formula, through the
9    development, review, and approval of the Agency's
10    long-term renewable resources procurement plan described
11    in subsection (c) of Section 1-75 of this Act and Section
12    16-111.5 of the Public Utilities Act. In the course of the
13    Commission proceeding initiated to review and approve the
14    plan, including the Illinois Solar for All Program proposed
15    by the Agency, a party may propose an additional low-income
16    solar or solar incentive program, or modifications to the
17    programs proposed by the Agency, and the Commission may
18    approve an additional program, or modifications to the
19    Agency's proposed program, if the additional or modified
20    program more effectively maximizes the benefits to
21    low-income customers after taking into account all
22    relevant factors, including, but not limited to, the extent
23    to which a competitive market for low-income solar has
24    developed. Following the Commission's approval of the
25    Illinois Solar for All Program, the Agency or a party may
26    propose adjustments to the program terms, conditions, and

 

 

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1    requirements, including the price offered to new systems,
2    to ensure the long-term viability and success of the
3    program. The Commission shall review and approve any
4    modifications to the program through the plan revision
5    process described in Section 16-111.5 of the Public
6    Utilities Act.
7        (5) The Agency shall issue a request for qualifications
8    for a third-party program administrator or administrators
9    to administer all or a portion of the Illinois Solar for
10    All Program. The third-party program administrator shall
11    be chosen through a competitive bid process based on
12    selection criteria and requirements developed by the
13    Agency, including, but not limited to, experience in
14    administering low-income energy programs and overseeing
15    statewide clean energy or energy efficiency services. If
16    the Agency retains a program administrator or
17    administrators to implement all or a portion of the
18    Illinois Solar for All Program, each administrator shall
19    periodically submit reports to the Agency and Commission
20    for each program that it administers, at appropriate
21    intervals to be identified by the Agency in its long-term
22    renewable resources procurement plan, provided that the
23    reporting interval is at least quarterly.
24        (6) The long-term renewable resources procurement plan
25    shall also provide for an independent evaluation of the
26    Illinois Solar for All Program. At least every 2 years, the

 

 

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1    Agency shall select an independent evaluator to review and
2    report on the Illinois Solar for All Program and the
3    performance of the third-party program administrator of
4    the Illinois Solar for All Program. The evaluation shall be
5    based on objective criteria developed through a public
6    stakeholder process. The process shall include feedback
7    and participation from Illinois Solar for All Program
8    stakeholders, including participants and organizations in
9    environmental justice and historically underserved
10    communities. The report shall include a summary of the
11    evaluation of the Illinois Solar for All Program based on
12    the stakeholder developed objective criteria. The report
13    shall include the number of projects installed; the total
14    installed capacity in kilowatts; the average cost per
15    kilowatt of installed capacity to the extent reasonably
16    obtainable by the Agency; the number of jobs or job
17    opportunities created; economic, social, and environmental
18    benefits created; and the total administrative costs
19    expended by the Agency and program administrator to
20    implement and evaluate the program. The report shall be
21    delivered to the Commission and posted on the Agency's
22    website, and shall be used, as needed, to revise the
23    Illinois Solar for All Program. The Commission shall also
24    consider the results of the evaluation as part of its
25    review of the long-term renewable resources procurement
26    plan under subsection (c) of Section 1-75 of this Act.

 

 

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1        (7) If additional funding for the programs described in
2    this subsection (b) is available under subsection (k) of
3    Section 16-108 of the Public Utilities Act, then the Agency
4    shall submit a procurement plan to the Commission no later
5    than September 1, 2018, that proposes how the Agency will
6    procure programs on behalf of the applicable utility. After
7    notice and hearing, the Commission shall approve, or
8    approve with modification, the plan no later than November
9    1, 2018.
10    As used in this subsection (b), "low-income households"
11means persons and families whose income does not exceed 80% of
12area median income, adjusted for family size and revised every
135 years.
14    For the purposes of this subsection (b), the Agency shall
15define "environmental justice community" as part of long-term
16renewable resources procurement plan development, to ensure,
17to the extent practicable, compatibility with other agencies'
18definitions and may, for guidance, look to the definitions used
19by federal, state, or local governments.
20    (b-5) After the receipt of all payments required by Section
2116-115D of the Public Utilities Act, no additional funds shall
22be deposited into the Illinois Power Agency Renewable Energy
23Resources Fund unless directed by order of the Commission.
24    (b-10) After the receipt of all payments required by
25Section 16-115D of the Public Utilities Act and payment in full
26of all contracts executed by the Agency under subsections (b)

 

 

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1and (i) of this Section, if the balance of the Illinois Power
2Agency Renewable Energy Resources Fund is under $5,000, then
3the Fund shall be inoperative and any remaining funds and any
4funds submitted to the Fund after that date, shall be
5transferred to the Supplemental Low-Income Energy Assistance
6Fund for use in the Low-Income Home Energy Assistance Program,
7as authorized by the Energy Assistance Act.
8    (c) (Blank).
9    (d) (Blank).
10    (e) All renewable energy credits procured using monies from
11the Illinois Power Agency Renewable Energy Resources Fund shall
12be permanently retired.
13    (f) The selection of one or more third-party program
14managers or administrators, the selection of the independent
15evaluator, and the procurement processes described in this
16Section are exempt from the requirements of the Illinois
17Procurement Code, under Section 20-10 of that Code.
18    (g) All disbursements from the Illinois Power Agency
19Renewable Energy Resources Fund shall be made only upon
20warrants of the Comptroller drawn upon the Treasurer as
21custodian of the Fund upon vouchers signed by the Director or
22by the person or persons designated by the Director for that
23purpose. The Comptroller is authorized to draw the warrant upon
24vouchers so signed. The Treasurer shall accept all warrants so
25signed and shall be released from liability for all payments
26made on those warrants.

 

 

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1    (h) The Illinois Power Agency Renewable Energy Resources
2Fund shall not be subject to sweeps, administrative charges, or
3chargebacks, including, but not limited to, those authorized
4under Section 8h of the State Finance Act, that would in any
5way result in the transfer of any funds from this Fund to any
6other fund of this State or in having any such funds utilized
7for any purpose other than the express purposes set forth in
8this Section.
9    (h-5) The Agency may assess fees to each bidder to recover
10the costs incurred in connection with a procurement process
11held under this Section. Fees collected from bidders shall be
12deposited into the Renewable Energy Resources Fund.
13    (i) Supplemental procurement process.
14        (1) Within 90 days after the effective date of this
15    amendatory Act of the 98th General Assembly, the Agency
16    shall develop a one-time supplemental procurement plan
17    limited to the procurement of renewable energy credits, if
18    available, from new or existing photovoltaics, including,
19    but not limited to, distributed photovoltaic generation.
20    Nothing in this subsection (i) requires procurement of wind
21    generation through the supplemental procurement.
22        Renewable energy credits procured from new
23    photovoltaics, including, but not limited to, distributed
24    photovoltaic generation, under this subsection (i) must be
25    procured from devices installed by a qualified person. In
26    its supplemental procurement plan, the Agency shall

 

 

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1    establish contractually enforceable mechanisms for
2    ensuring that the installation of new photovoltaics is
3    performed by a qualified person.
4        For the purposes of this paragraph (1), "qualified
5    person" means a person who performs installations of
6    photovoltaics, including, but not limited to, distributed
7    photovoltaic generation, and who: (A) has completed an
8    apprenticeship as a journeyman electrician from a United
9    States Department of Labor registered electrical
10    apprenticeship and training program and received a
11    certification of satisfactory completion; or (B) does not
12    currently meet the criteria under clause (A) of this
13    paragraph (1), but is enrolled in a United States
14    Department of Labor registered electrical apprenticeship
15    program, provided that the person is directly supervised by
16    a person who meets the criteria under clause (A) of this
17    paragraph (1); or (C) has obtained one of the following
18    credentials in addition to attesting to satisfactory
19    completion of at least 5 years or 8,000 hours of documented
20    hands-on electrical experience: (i) a North American Board
21    of Certified Energy Practitioners (NABCEP) Installer
22    Certificate for Solar PV; (ii) an Underwriters
23    Laboratories (UL) PV Systems Installer Certificate; (iii)
24    an Electronics Technicians Association, International
25    (ETAI) Level 3 PV Installer Certificate; or (iv) an
26    Associate in Applied Science degree from an Illinois

 

 

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1    Community College Board approved community college program
2    in renewable energy or a distributed generation
3    technology.
4        For the purposes of this paragraph (1), "directly
5    supervised" means that there is a qualified person who
6    meets the qualifications under clause (A) of this paragraph
7    (1) and who is available for supervision and consultation
8    regarding the work performed by persons under clause (B) of
9    this paragraph (1), including a final inspection of the
10    installation work that has been directly supervised to
11    ensure safety and conformity with applicable codes.
12        For the purposes of this paragraph (1), "install" means
13    the major activities and actions required to connect, in
14    accordance with applicable building and electrical codes,
15    the conductors, connectors, and all associated fittings,
16    devices, power outlets, or apparatuses mounted at the
17    premises that are directly involved in delivering energy to
18    the premises' electrical wiring from the photovoltaics,
19    including, but not limited to, to distributed photovoltaic
20    generation.
21        The renewable energy credits procured pursuant to the
22    supplemental procurement plan shall be procured using up to
23    $30,000,000 from the Illinois Power Agency Renewable
24    Energy Resources Fund. The Agency shall not plan to use
25    funds from the Illinois Power Agency Renewable Energy
26    Resources Fund in excess of the monies on deposit in such

 

 

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1    fund or projected to be deposited into such fund. The
2    supplemental procurement plan shall ensure adequate,
3    reliable, affordable, efficient, and environmentally
4    sustainable renewable energy resources (including credits)
5    at the lowest total cost over time, taking into account any
6    benefits of price stability.
7        To the extent available, 50% of the renewable energy
8    credits procured from distributed renewable energy
9    generation shall come from devices of less than 25
10    kilowatts in nameplate capacity. Procurement of renewable
11    energy credits from distributed renewable energy
12    generation devices shall be done through multi-year
13    contracts of no less than 5 years. The Agency shall create
14    credit requirements for counterparties. In order to
15    minimize the administrative burden on contracting
16    entities, the Agency shall solicit the use of third parties
17    to aggregate distributed renewable energy. These third
18    parties shall enter into and administer contracts with
19    individual distributed renewable energy generation device
20    owners. An individual distributed renewable energy
21    generation device owner shall have the ability to measure
22    the output of his or her distributed renewable energy
23    generation device.
24        In developing the supplemental procurement plan, the
25    Agency shall hold at least one workshop open to the public
26    within 90 days after the effective date of this amendatory

 

 

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1    Act of the 98th General Assembly and shall consider any
2    comments made by stakeholders or the public. Upon
3    development of the supplemental procurement plan within
4    this 90-day period, copies of the supplemental procurement
5    plan shall be posted and made publicly available on the
6    Agency's and Commission's websites. All interested parties
7    shall have 14 days following the date of posting to provide
8    comment to the Agency on the supplemental procurement plan.
9    All comments submitted to the Agency shall be specific,
10    supported by data or other detailed analyses, and, if
11    objecting to all or a portion of the supplemental
12    procurement plan, accompanied by specific alternative
13    wording or proposals. All comments shall be posted on the
14    Agency's and Commission's websites. Within 14 days
15    following the end of the 14-day review period, the Agency
16    shall revise the supplemental procurement plan as
17    necessary based on the comments received and file its
18    revised supplemental procurement plan with the Commission
19    for approval.
20        (2) Within 5 days after the filing of the supplemental
21    procurement plan at the Commission, any person objecting to
22    the supplemental procurement plan shall file an objection
23    with the Commission. Within 10 days after the filing, the
24    Commission shall determine whether a hearing is necessary.
25    The Commission shall enter its order confirming or
26    modifying the supplemental procurement plan within 90 days

 

 

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1    after the filing of the supplemental procurement plan by
2    the Agency.
3        (3) The Commission shall approve the supplemental
4    procurement plan of renewable energy credits to be procured
5    from new or existing photovoltaics, including, but not
6    limited to, distributed photovoltaic generation, if the
7    Commission determines that it will ensure adequate,
8    reliable, affordable, efficient, and environmentally
9    sustainable electric service in the form of renewable
10    energy credits at the lowest total cost over time, taking
11    into account any benefits of price stability.
12        (4) The supplemental procurement process under this
13    subsection (i) shall include each of the following
14    components:
15            (A) Procurement administrator. The Agency may
16        retain a procurement administrator in the manner set
17        forth in item (2) of subsection (a) of Section 1-75 of
18        this Act to conduct the supplemental procurement or may
19        elect to use the same procurement administrator
20        administering the Agency's annual procurement under
21        Section 1-75.
22            (B) Procurement monitor. The procurement monitor
23        retained by the Commission pursuant to Section
24        16-111.5 of the Public Utilities Act shall:
25                (i) monitor interactions among the procurement
26            administrator and bidders and suppliers;

 

 

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1                (ii) monitor and report to the Commission on
2            the progress of the supplemental procurement
3            process;
4                (iii) provide an independent confidential
5            report to the Commission regarding the results of
6            the procurement events;
7                (iv) assess compliance with the procurement
8            plan approved by the Commission for the
9            supplemental procurement process;
10                (v) preserve the confidentiality of supplier
11            and bidding information in a manner consistent
12            with all applicable laws, rules, regulations, and
13            tariffs;
14                (vi) provide expert advice to the Commission
15            and consult with the procurement administrator
16            regarding issues related to procurement process
17            design, rules, protocols, and policy-related
18            matters;
19                (vii) consult with the procurement
20            administrator regarding the development and use of
21            benchmark criteria, standard form contracts,
22            credit policies, and bid documents; and
23                (viii) perform, with respect to the
24            supplemental procurement process, any other
25            procurement monitor duties specifically delineated
26            within subsection (i) of this Section.

 

 

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1            (C) Solicitation, pre-qualification, and
2        registration of bidders. The procurement administrator
3        shall disseminate information to potential bidders to
4        promote a procurement event, notify potential bidders
5        that the procurement administrator may enter into a
6        post-bid price negotiation with bidders that meet the
7        applicable benchmarks, provide supply requirements,
8        and otherwise explain the competitive procurement
9        process. In addition to such other publication as the
10        procurement administrator determines is appropriate,
11        this information shall be posted on the Agency's and
12        the Commission's websites. The procurement
13        administrator shall also administer the
14        prequalification process, including evaluation of
15        credit worthiness, compliance with procurement rules,
16        and agreement to the standard form contract developed
17        pursuant to item (D) of this paragraph (4). The
18        procurement administrator shall then identify and
19        register bidders to participate in the procurement
20        event.
21            (D) Standard contract forms and credit terms and
22        instruments. The procurement administrator, in
23        consultation with the Agency, the Commission, and
24        other interested parties and subject to Commission
25        oversight, shall develop and provide standard contract
26        forms for the supplier contracts that meet generally

 

 

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1        accepted industry practices as well as include any
2        applicable State of Illinois terms and conditions that
3        are required for contracts entered into by an agency of
4        the State of Illinois. Standard credit terms and
5        instruments that meet generally accepted industry
6        practices shall be similarly developed. Contracts for
7        new photovoltaics shall include a provision attesting
8        that the supplier will use a qualified person for the
9        installation of the device pursuant to paragraph (1) of
10        subsection (i) of this Section. The procurement
11        administrator shall make available to the Commission
12        all written comments it receives on the contract forms,
13        credit terms, or instruments. If the procurement
14        administrator cannot reach agreement with the parties
15        as to the contract terms and conditions, the
16        procurement administrator must notify the Commission
17        of any disputed terms and the Commission shall resolve
18        the dispute. The terms of the contracts shall not be
19        subject to negotiation by winning bidders, and the
20        bidders must agree to the terms of the contract in
21        advance so that winning bids are selected solely on the
22        basis of price.
23            (E) Requests for proposals; competitive
24        procurement process. The procurement administrator
25        shall design and issue requests for proposals to supply
26        renewable energy credits in accordance with the

 

 

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1        supplemental procurement plan, as approved by the
2        Commission. The requests for proposals shall set forth
3        a procedure for sealed, binding commitment bidding
4        with pay-as-bid settlement, and provision for
5        selection of bids on the basis of price, provided,
6        however, that no bid shall be accepted if it exceeds
7        the benchmark developed pursuant to item (F) of this
8        paragraph (4).
9            (F) Benchmarks. Benchmarks for each product to be
10        procured shall be developed by the procurement
11        administrator in consultation with Commission staff,
12        the Agency, and the procurement monitor for use in this
13        supplemental procurement.
14            (G) A plan for implementing contingencies in the
15        event of supplier default, Commission rejection of
16        results, or any other cause.
17        (5) Within 2 business days after opening the sealed
18    bids, the procurement administrator shall submit a
19    confidential report to the Commission. The report shall
20    contain the results of the bidding for each of the products
21    along with the procurement administrator's recommendation
22    for the acceptance and rejection of bids based on the price
23    benchmark criteria and other factors observed in the
24    process. The procurement monitor also shall submit a
25    confidential report to the Commission within 2 business
26    days after opening the sealed bids. The report shall

 

 

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1    contain the procurement monitor's assessment of bidder
2    behavior in the process as well as an assessment of the
3    procurement administrator's compliance with the
4    procurement process and rules. The Commission shall review
5    the confidential reports submitted by the procurement
6    administrator and procurement monitor and shall accept or
7    reject the recommendations of the procurement
8    administrator within 2 business days after receipt of the
9    reports.
10        (6) Within 3 business days after the Commission
11    decision approving the results of a procurement event, the
12    Agency shall enter into binding contractual arrangements
13    with the winning suppliers using the standard form
14    contracts.
15        (7) The names of the successful bidders and the average
16    of the winning bid prices for each contract type and for
17    each contract term shall be made available to the public
18    within 2 days after the supplemental procurement event. The
19    Commission, the procurement monitor, the procurement
20    administrator, the Agency, and all participants in the
21    procurement process shall maintain the confidentiality of
22    all other supplier and bidding information in a manner
23    consistent with all applicable laws, rules, regulations,
24    and tariffs. Confidential information, including the
25    confidential reports submitted by the procurement
26    administrator and procurement monitor pursuant to this

 

 

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1    Section, shall not be made publicly available and shall not
2    be discoverable by any party in any proceeding, absent a
3    compelling demonstration of need, nor shall those reports
4    be admissible in any proceeding other than one for law
5    enforcement purposes.
6        (8) The supplemental procurement provided in this
7    subsection (i) shall not be subject to the requirements and
8    limitations of subsections (c) and (d) of this Section.
9        (9) Expenses incurred in connection with the
10    procurement process held pursuant to this Section,
11    including, but not limited to, the cost of developing the
12    supplemental procurement plan, the procurement
13    administrator, procurement monitor, and the cost of the
14    retirement of renewable energy credits purchased pursuant
15    to the supplemental procurement shall be paid for from the
16    Illinois Power Agency Renewable Energy Resources Fund. The
17    Agency shall enter into an interagency agreement with the
18    Commission to reimburse the Commission for its costs
19    associated with the procurement monitor for the
20    supplemental procurement process.
21(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)
 
22    (20 ILCS 3855/1-75)
23    Sec. 1-75. Planning and Procurement Bureau. The Planning
24and Procurement Bureau has the following duties and
25responsibilities:

 

 

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1    (a) The Planning and Procurement Bureau shall each year,
2beginning in 2008, develop procurement plans and conduct
3competitive procurement processes in accordance with the
4requirements of Section 16-111.5 of the Public Utilities Act
5for the eligible retail customers of electric utilities that on
6December 31, 2005 provided electric service to at least 100,000
7customers in Illinois. Beginning with the delivery year
8commencing on June 1, 2017, the Planning and Procurement Bureau
9shall develop plans and processes for the procurement of zero
10emission credits from zero emission facilities in accordance
11with the requirements of subsection (d-5) of this Section. The
12Planning and Procurement Bureau shall also develop procurement
13plans and conduct competitive procurement processes in
14accordance with the requirements of Section 16-111.5 of the
15Public Utilities Act for the eligible retail customers of small
16multi-jurisdictional electric utilities that (i) on December
1731, 2005 served less than 100,000 customers in Illinois and
18(ii) request a procurement plan for their Illinois
19jurisdictional load. This Section shall not apply to a small
20multi-jurisdictional utility until such time as a small
21multi-jurisdictional utility requests the Agency to prepare a
22procurement plan for their Illinois jurisdictional load. For
23the purposes of this Section, the term "eligible retail
24customers" has the same definition as found in Section
2516-111.5(a) of the Public Utilities Act.
26    Beginning with the plan or plans to be implemented in the

 

 

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12017 delivery year, the Agency shall no longer include the
2procurement of renewable energy resources in the annual
3procurement plans required by this subsection (a), except as
4provided in subsection (q) of Section 16-111.5 of the Public
5Utilities Act, and shall instead develop a long-term renewable
6resources procurement plan in accordance with subsection (c) of
7this Section and Section 16-111.5 of the Public Utilities Act.
8        (1) The Agency shall each year, beginning in 2008, as
9    needed, issue a request for qualifications for experts or
10    expert consulting firms to develop the procurement plans in
11    accordance with Section 16-111.5 of the Public Utilities
12    Act. In order to qualify an expert or expert consulting
13    firm must have:
14            (A) direct previous experience assembling
15        large-scale power supply plans or portfolios for
16        end-use customers;
17            (B) an advanced degree in economics, mathematics,
18        engineering, risk management, or a related area of
19        study;
20            (C) 10 years of experience in the electricity
21        sector, including managing supply risk;
22            (D) expertise in wholesale electricity market
23        rules, including those established by the Federal
24        Energy Regulatory Commission and regional transmission
25        organizations;
26            (E) expertise in credit protocols and familiarity

 

 

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

 

 

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

 

 

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1    consulting firm from a list, an objecting party may seek
2    review by the Commission within 5 days thereafter by filing
3    a petition, and the Commission shall render a ruling on the
4    petition within 10 days. There is no right of appeal of the
5    Commission's ruling.
6        (4) The Agency shall issue requests for proposals to
7    the qualified experts or expert consulting firms to develop
8    a procurement plan for the affected utilities and to serve
9    as procurement administrator.
10        (5) The Agency shall select an expert or expert
11    consulting firm to develop procurement plans based on the
12    proposals submitted and shall award contracts of up to 5
13    years to those selected.
14        (6) The Agency shall select an expert or expert
15    consulting firm, with approval of the Commission, to serve
16    as procurement administrator based on the proposals
17    submitted. If the Commission rejects, within 5 days, the
18    Agency's selection, the Agency shall submit another
19    recommendation within 3 days based on the proposals
20    submitted. The Agency shall award a 5-year contract to the
21    expert or expert consulting firm so selected with
22    Commission approval.
23    (b) The experts or expert consulting firms retained by the
24Agency shall, as appropriate, prepare procurement plans, and
25conduct a competitive procurement process as prescribed in
26Section 16-111.5 of the Public Utilities Act, to ensure

 

 

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1adequate, reliable, affordable, efficient, and environmentally
2sustainable electric service at the lowest total cost over
3time, taking into account any benefits of price stability, for
4eligible retail customers of electric utilities that on
5December 31, 2005 provided electric service to at least 100,000
6customers in the State of Illinois, and for eligible Illinois
7retail customers of small multi-jurisdictional electric
8utilities that (i) on December 31, 2005 served less than
9100,000 customers in Illinois and (ii) request a procurement
10plan for their Illinois jurisdictional load.
11    (c) Renewable portfolio standard.
12        (1)(A) The Agency shall develop a long-term renewable
13    resources procurement plan that shall include procurement
14    programs and competitive procurement events necessary to
15    meet the goals set forth in this subsection (c). The
16    initial long-term renewable resources procurement plan
17    shall be released for comment no later than 160 days after
18    June 1, 2017 (the effective date of Public Act 99-906). The
19    Agency shall review, and may revise on an expedited basis,
20    the long-term renewable resources procurement plan at
21    least every 2 years, which shall be conducted in
22    conjunction with the procurement plan under Section
23    16-111.5 of the Public Utilities Act to the extent
24    practicable to minimize administrative expense. The
25    long-term renewable resources procurement plans shall be
26    subject to review and approval by the Commission under

 

 

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1    Section 16-111.5 of the Public Utilities Act.
2        (B) Subject to subparagraph (F) of this paragraph (1),
3    the long-term renewable resources procurement plan shall
4    include the goals for procurement of renewable energy
5    credits to meet at least the following overall percentages:
6    13% by the 2017 delivery year; increasing by at least 1.5%
7    each delivery year thereafter to at least 25% by the 2025
8    delivery year; increasing by at least 2.5% each delivery
9    year thereafter to at least 37.5% by the 2030 delivery
10    year; and continuing at no less than 37.5% 25% for each
11    delivery year thereafter. In the event of a conflict
12    between these goals and the new wind and new photovoltaic
13    procurement requirements described in items (i) through
14    (iii) of subparagraph (C) of this paragraph (1), the
15    long-term plan shall prioritize compliance with the new
16    wind and new photovoltaic procurement requirements
17    described in items (i) through (iii) of subparagraph (C) of
18    this paragraph (1) over the annual percentage targets
19    described in this subparagraph (B).
20        For the delivery year beginning June 1, 2017, the
21    procurement plan shall include cost-effective renewable
22    energy resources equal to at least 13% of each utility's
23    load for eligible retail customers and 13% of the
24    applicable portion of each utility's load for retail
25    customers who are not eligible retail customers, which
26    applicable portion shall equal 50% of the utility's load

 

 

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1    for retail customers who are not eligible retail customers
2    on February 28, 2017.
3        For the delivery year beginning June 1, 2018, the
4    procurement plan shall include cost-effective renewable
5    energy resources equal to at least 14.5% of each utility's
6    load for eligible retail customers and 14.5% of the
7    applicable portion of each utility's load for retail
8    customers who are not eligible retail customers, which
9    applicable portion shall equal 75% of the utility's load
10    for retail customers who are not eligible retail customers
11    on February 28, 2017.
12        For the delivery year beginning June 1, 2019, and for
13    each year thereafter, the procurement plans shall include
14    cost-effective renewable energy resources equal to a
15    minimum percentage of each utility's load for all retail
16    customers as follows: 16% by June 1, 2019; increasing by
17    1.5% each year thereafter to 25% by June 1, 2025;
18    increasing by at least 2.5% each delivery year thereafter
19    to at least 37.5% by June 1, 2030 and 25% by June 1, 2026
20    and each year thereafter.
21        For each delivery year, the Agency shall first
22    recognize each utility's obligations for that delivery
23    year under existing contracts. Any renewable energy
24    credits under existing contracts, including renewable
25    energy credits as part of renewable energy resources, shall
26    be used to meet the goals set forth in this subsection (c)

 

 

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1    for the delivery year.
2        (C) Of the renewable energy credits procured under this
3    subsection (c), at least 75% shall come from wind and
4    photovoltaic projects. The long-term renewable resources
5    procurement plan described in subparagraph (A) of this
6    paragraph (1) shall include the procurement of new
7    renewable energy credits in amounts equal to at least
8    10,000,000 renewable energy credits from new wind and solar
9    projects by the end of delivery year 2020, and increasing
10    ratably to reach 45,000,000 new renewable energy credits
11    from wind and solar projects by the end of delivery year
12    2030 such that the goals in subparagraph (B) of this
13    paragraph (1) are met entirely by procurements of new
14    renewable energy credits from wind and solar projects. Of
15    the following: (i) By the end of the 2020 delivery year: At
16    least 2,000,000 renewable energy credits for each delivery
17    year shall come from new wind projects; and At least
18    2,000,000 renewable energy credits for each delivery year
19    shall come from new photovoltaic projects; of that amount,
20    to the extent possible, the Agency shall procure: 50% from
21    wind projects and 50% from solar projects. Of the amount
22    procured from solar projects, the Agency shall procure, to
23    the extent reasonably practicable: at least 50% from solar
24    photovoltaic projects using the program outlined in
25    subparagraph (K) of this paragraph (1) from distributed
26    renewable energy generation devices or community renewable

 

 

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1    generation projects; at least 40% from utility-scale solar
2    projects; at least 2% from brownfield site photovoltaic
3    projects that are not community renewable generation
4    projects; and the remainder shall be determined through the
5    long-term planning process described in subparagraph (A)
6    of this paragraph (1).
7        (ii) By the end of the 2025 delivery year: At least
8    3,000,000 renewable energy credits for each delivery year
9    shall come from new wind projects; and At least 3,000,000
10    renewable energy credits for each delivery year shall come
11    from new photovoltaic projects; of that amount, to the
12    extent possible, the Agency shall procure: at least 50%
13    from solar photovoltaic projects using the program
14    outlined in subparagraph (K) of this paragraph (1) from
15    distributed renewable energy devices or community
16    renewable generation projects; at least 40% from
17    utility-scale solar projects; at least 2% from brownfield
18    site photovoltaic projects that are not community
19    renewable generation projects; and the remainder shall be
20    determined through the long-term planning process
21    described in subparagraph (A) of this paragraph (1).
22        (iii) By the end of the 2030 delivery year: At least
23    4,000,000 renewable energy credits for each delivery year
24    shall come from new wind projects; and At least 4,000,000
25    renewable energy credits for each delivery year shall come
26    from new photovoltaic projects; of that amount, to the

 

 

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1    extent possible, the Agency shall procure: at least 50%
2    from solar photovoltaic projects using the program
3    outlined in subparagraph (K) of this paragraph (1) from
4    distributed renewable energy devices or community
5    renewable generation projects; at least 40% from
6    utility-scale solar projects; at least 2% from brownfield
7    site photovoltaic projects that are not community
8    renewable generation projects; and the remainder shall be
9    determined through the long-term planning process
10    described in subparagraph (A) of this paragraph (1).
11        For purposes of this Section:
12        "New wind projects" means wind renewable energy
13    facilities that are energized after June 1, 2017 for the
14    delivery year commencing June 1, 2017 or within 3 years
15    after the date the Commission approves contracts for
16    subsequent delivery years.
17        "New photovoltaic projects" means photovoltaic
18    renewable energy facilities that are energized after June
19    1, 2017. Photovoltaic projects developed under Section
20    1-56 of this Act shall not apply towards the new
21    photovoltaic project requirements in this subparagraph
22    (C). For purposes of calculating whether the Agency has
23    procured enough new wind and solar renewable energy credits
24    required by this subparagraph (C), renewable energy
25    facilities that have a multi-year renewable energy credit
26    delivery contract with the utility through at least

 

 

10100SB2080sam004- 130 -LRB101 11122 RJF 59369 a

1    delivery year 2030 shall be considered new, however no
2    renewable energy credits from contracts entered into
3    before June 1, 2019 shall be used to calculate whether the
4    Agency has procured the correct proportion of new wind and
5    new solar contracts described in this subparagraph (C) for
6    delivery year 2020 and thereafter.
7        (D) Renewable energy credits shall be cost effective.
8    For purposes of this subsection (c), "cost effective" means
9    that the costs of procuring renewable energy resources do
10    not cause the limit stated in subparagraph (E) of this
11    paragraph (1) to be exceeded and, for renewable energy
12    credits procured through a competitive procurement event,
13    do not exceed benchmarks based on market prices for like
14    products in the region. For purposes of this subsection
15    (c), "like products" means contracts for renewable energy
16    credits from the same or substantially similar technology,
17    same or substantially similar vintage (new or existing),
18    the same or substantially similar quantity, and the same or
19    substantially similar contract length and structure.
20    Benchmarks shall be developed by the procurement
21    administrator, in consultation with the Commission staff,
22    Agency staff, and the procurement monitor and shall be
23    subject to Commission review and approval. If price
24    benchmarks for like products in the region are not
25    available, the procurement administrator shall establish
26    price benchmarks based on publicly available data on

 

 

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1    regional technology costs and expected current and future
2    regional energy prices. The benchmarks in this Section
3    shall not be used to curtail or otherwise reduce
4    contractual obligations entered into by or through the
5    Agency prior to June 1, 2017 (the effective date of Public
6    Act 99-906).
7        (E) For purposes of this subsection (c), the required
8    procurement of cost-effective renewable energy resources
9    for a particular year commencing prior to June 1, 2017
10    shall be measured as a percentage of the actual amount of
11    electricity (megawatt-hours) supplied by the electric
12    utility to eligible retail customers in the delivery year
13    ending immediately prior to the procurement, and, for
14    delivery years commencing on and after June 1, 2017, the
15    required procurement of cost-effective renewable energy
16    resources for a particular year shall be measured as a
17    percentage of the actual amount of electricity
18    (megawatt-hours) delivered by the electric utility in the
19    delivery year ending immediately prior to the procurement,
20    to all retail customers in its service territory. For
21    purposes of this subsection (c), the amount paid per
22    kilowatthour means the total amount paid for electric
23    service expressed on a per kilowatthour basis. For purposes
24    of this subsection (c), the total amount paid for electric
25    service includes without limitation amounts paid for
26    supply, capacity, transmission, distribution, surcharges,

 

 

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1    and add-on taxes.
2        Notwithstanding the requirements of this subsection
3    (c), the total of renewable energy resources procured under
4    the procurement plan for any single year shall be subject
5    to the limitations of this subparagraph (E). Such
6    procurement shall be reduced for all retail customers based
7    on the amount necessary to limit the annual estimated
8    average net increase due to the costs of these resources
9    included in the amounts paid by eligible retail customers
10    in connection with electric service to no more than the
11    greater of the percentage limitations as included in
12    paragraphs (1), (2), and (3) of subsection (m) of Section
13    8-103B of the Public Utilities Act 2.015% of the amount
14    paid per kilowatthour by those customers during the year
15    ending May 31, 2009 2007 or the incremental amount per
16    kilowatthour paid for these resources in 2011. To arrive at
17    a maximum dollar amount of renewable energy resources to be
18    procured for the particular delivery year, the resulting
19    per kilowatthour amount shall be applied to the actual
20    amount of kilowatthours of electricity delivered, or
21    applicable portion of such amount as specified in paragraph
22    (1) of this subsection (c), as applicable, by the electric
23    utility in the delivery year immediately prior to the
24    procurement to all retail customers in its service
25    territory. The calculations required by this subparagraph
26    (E) shall be made only once for each delivery year at the

 

 

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1    time that the renewable energy resources are procured. Once
2    the determination as to the amount of renewable energy
3    resources to procure is made based on the calculations set
4    forth in this subparagraph (E) and the contracts procuring
5    those amounts are executed, no subsequent rate impact
6    determinations shall be made and no adjustments to those
7    contract amounts shall be allowed. All costs incurred under
8    such contracts shall be fully recoverable by the electric
9    utility as provided in this Section.
10        (E-5) If the limitation on the amount of renewable
11    energy resources procured in subparagraph (E) of this
12    paragraph (1) would prevent the Agency from meeting all of
13    the goals in this subsection (c), the Agency shall procure
14    additional renewable energy resources up to an amount equal
15    to the Social Cost of Carbon as defined in subsection (d-5)
16    of this Section as of January 1, 2019 multiplied by the
17    amount of new renewable energy credits to be procured
18    pursuant to the new renewable energy credit procurement
19    requirements of subparagraph (C) of this paragraph (1) from
20    the new build requirements for the relevant planning year.
21    The deemed savings of renewable energy shall not be subject
22    to the limitations in subparagraph (E) of this paragraph
23    (1). The utilities shall be entitled to recover the total
24    cost associated with procuring renewable energy credits
25    required by this Section regardless of whether the costs
26    are subject to the limitations described in subparagraph

 

 

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1    (E) of this paragraph (1) through the automatic adjustment
2    clause tariff under subsection (k) of Section 16-108 of the
3    Public Utilities Act.
4        (F) If the limitation on the amount of renewable energy
5    (1) resources procured in subparagraph (E) of this
6    paragraph (1) prevents the Agency from meeting all of the
7    goals in this subsection (c), the Agency's long-term plan
8    shall prioritize compliance with the requirements of this
9    subsection (c) regarding renewable energy credits in the
10    following order:
11            (i) renewable energy credits under existing
12        contractual obligations;
13            (i-5) funding for the Illinois Solar for All
14        Program, as described in subparagraph (O) of this
15        paragraph (1);
16            (ii) renewable energy credits necessary to comply
17        with the new wind and new photovoltaic procurement
18        requirements described in items (i) through (iii) of
19        subparagraph (C) of this paragraph (1); and
20            (iii) renewable energy credits necessary to meet
21        the remaining requirements of this subsection (c).
22        (G) The following provisions shall apply to the
23    Agency's procurement of renewable energy credits under
24    this subsection (c):
25            (i) Notwithstanding whether a long-term renewable
26        resources procurement plan has been approved, the

 

 

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1        Agency shall conduct an initial forward procurement
2        for renewable energy credits from new utility-scale
3        wind projects within 160 days after June 1, 2017 (the
4        effective date of Public Act 99-906). For the purposes
5        of this initial forward procurement, the Agency shall
6        solicit 15-year contracts for delivery of 1,000,000
7        renewable energy credits delivered annually from new
8        utility-scale wind projects to begin delivery on June
9        1, 2019, if available, but not later than June 1, 2021.
10        Payments to suppliers of renewable energy credits
11        shall commence upon delivery. Renewable energy credits
12        procured under this initial procurement shall be
13        included in the Agency's long-term plan and shall apply
14        to all renewable energy goals in this subsection (c).
15            (ii) Notwithstanding whether a long-term renewable
16        resources procurement plan has been approved, the
17        Agency shall conduct an initial forward procurement
18        for renewable energy credits from new utility-scale
19        solar projects and brownfield site photovoltaic
20        projects within one year after June 1, 2017 (the
21        effective date of Public Act 99-906). For the purposes
22        of this initial forward procurement, the Agency shall
23        solicit 15-year contracts for delivery of 1,000,000
24        renewable energy credits delivered annually from new
25        utility-scale solar projects and brownfield site
26        photovoltaic projects to begin delivery on June 1,

 

 

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1        2019, if available, but not later than June 1, 2021.
2        The Agency may structure this initial procurement in
3        one or more discrete procurement events. Payments to
4        suppliers of renewable energy credits shall commence
5        upon delivery. Renewable energy credits procured under
6        this initial procurement shall be included in the
7        Agency's long-term plan and shall apply to all
8        renewable energy goals in this subsection (c).
9            (iii) Notwithstanding whether the Commission has
10        approved the periodic long-term renewable resources
11        procurement plan revision described in Section
12        16-111.5 of the Public Utilities Act, the Agency shall
13        conduct at least one subsequent forward procurement
14        for renewable energy credits from new utility-scale
15        wind projects and new utility-scale solar projects
16        within 120 days after the effective date of this
17        amendatory Act of the 101st General Assembly in
18        quantities needed to meet the requirements of
19        subparagraph (C). Subsequent forward procurements for
20        utility-scale wind projects shall solicit at least
21        1,000,000 renewable energy credits delivered annually
22        per procurement event and shall be planned, scheduled,
23        and designed such that the cumulative amount of
24        renewable energy credits delivered from all new wind
25        projects in each delivery year shall not exceed the
26        Agency's projection of the cumulative amount of

 

 

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1        renewable energy credits that will be delivered from
2        all new photovoltaic projects, including utility-scale
3        and distributed photovoltaic devices, in the same
4        delivery year at the time scheduled for wind contract
5        delivery.
6            (iv) For all competitive procurements under this
7        subparagraph (G) and any procurements required under
8        subparagraph (C) of new utility-scale wind and new
9        utility-scale solar, the Agency shall allow
10        respondents to bid a fixed price per renewable energy
11        credit or a variable price per renewable energy credit
12        that is indexed to the ComEd Hub for projects
13        interconnecting to PJM Interconnection LLC or the
14        Illinois Hub for projects interconnecting to MISO.
15        Variable price renewable energy credit bids shall be
16        limited to the first 3 new utility-scale wind and solar
17        procurements following the effective date of this
18        amendatory act of the 101st General Assembly. Variable
19        renewable energy credit bids shall be based on the
20        difference between the offer strike price and the index
21        price that shall be developed by the Illinois Power
22        Agency and approved by the Illinois Commerce
23        Commission. Variable price renewable energy credits
24        shall not exceed more than 40% or less than 20% of the
25        total supply for new utility-scale wind and solar
26        procurements in a procurement year. The Illinois

 

 

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

 

 

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1        each delivery year and provided further that nothing in
2        this item (iv) shall require the curtailment of an
3        executed contract. The Agency shall update, on a
4        quarterly basis, its projection of the renewable
5        energy credits to be delivered from all projects in
6        each delivery year. Notwithstanding anything to the
7        contrary, the Agency may adjust the timing of
8        procurement events conducted under this subparagraph
9        (G). The long-term renewable resources procurement
10        plan shall set forth the process by which the
11        adjustments may be made.
12            (v) All procurements under this subparagraph (G)
13        shall comply with the geographic requirements in
14        subparagraph (I) of this paragraph (1) and shall follow
15        the procurement processes and procedures described in
16        this Section and Section 16-111.5 of the Public
17        Utilities Act to the extent practicable, and these
18        processes and procedures may be expedited to
19        accommodate the schedule established by this
20        subparagraph (G).
21        (H) The procurement of renewable energy resources for a
22    given delivery year shall be reduced as described in this
23    subparagraph (H) if an alternative retail electric
24    supplier meets the requirements described in this
25    subparagraph (H).
26            (i) Within 45 days after June 1, 2017 (the

 

 

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1        effective date of Public Act 99-906), an alternative
2        retail electric supplier or its successor shall submit
3        an informational filing to the Illinois Commerce
4        Commission certifying that, as of December 31, 2015,
5        the alternative retail electric supplier owned one or
6        more electric generating facilities that generates
7        renewable energy resources as defined in Section 1-10
8        of this Act, provided that such facilities are not
9        powered by wind or photovoltaics, and the facilities
10        generate one renewable energy credit for each
11        megawatthour of energy produced from the facility.
12            The informational filing shall identify each
13        facility that was eligible to satisfy the alternative
14        retail electric supplier's obligations under Section
15        16-115D of the Public Utilities Act as described in
16        this item (i).
17            (ii) For a given delivery year, the alternative
18        retail electric supplier may elect to supply its retail
19        customers with renewable energy credits from the
20        facility or facilities described in item (i) of this
21        subparagraph (H) that continue to be owned by the
22        alternative retail electric supplier.
23            (iii) The alternative retail electric supplier
24        shall notify the Agency and the applicable utility, no
25        later than February 28 of the year preceding the
26        applicable delivery year or 15 days after June 1, 2017

 

 

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1        (the effective date of Public Act 99-906), whichever is
2        later, of its election under item (ii) of this
3        subparagraph (H) to supply renewable energy credits to
4        retail customers of the utility. Such election shall
5        identify the amount of renewable energy credits to be
6        supplied by the alternative retail electric supplier
7        to the utility's retail customers and the source of the
8        renewable energy credits identified in the
9        informational filing as described in item (i) of this
10        subparagraph (H), subject to the following
11        limitations:
12                For the delivery year beginning June 1, 2018,
13            the maximum amount of renewable energy credits to
14            be supplied by an alternative retail electric
15            supplier under this subparagraph (H) shall be 68%
16            multiplied by 25% multiplied by 14.5% multiplied
17            by the amount of metered electricity
18            (megawatt-hours) delivered by the alternative
19            retail electric supplier to Illinois retail
20            customers during the delivery year ending May 31,
21            2016.
22                For delivery years beginning June 1, 2019 and
23            each year thereafter, the maximum amount of
24            renewable energy credits to be supplied by an
25            alternative retail electric supplier under this
26            subparagraph (H) shall be 68% multiplied by 50%

 

 

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

 

 

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

 

 

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1    reliability and resiliency of the electricity distribution
2    system in this State, meeting goals to limit carbon dioxide
3    emissions under federal or State law, and contributing to a
4    cleaner and healthier environment for the citizens of this
5    State. In order to further these legislative purposes,
6    renewable energy credits shall be eligible to be counted
7    toward the renewable energy requirements of this
8    subsection (c) if they are generated from facilities
9    located in this State. The Agency may qualify renewable
10    energy credits from facilities located in states adjacent
11    to Illinois if the generator demonstrates and the Agency
12    determines that the operation of such facility or
13    facilities will help promote the State's interest in the
14    health, safety, and welfare of its residents based on the
15    public interest criteria described above. To ensure that
16    the public interest criteria are applied to the procurement
17    and given full effect, the Agency's long-term procurement
18    plan shall describe in detail how each public interest
19    factor shall be considered and weighted for facilities
20    located in states adjacent to Illinois.
21        (J) In order to promote the competitive development of
22    renewable energy resources in furtherance of the State's
23    interest in the health, safety, and welfare of its
24    residents, renewable energy credits shall not be eligible
25    to be counted toward the renewable energy requirements of
26    this subsection (c) if they are sourced from a generating

 

 

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1    unit whose costs were being recovered through rates
2    regulated by this State or any other state or states on or
3    after January 1, 2017. Each contract executed to purchase
4    renewable energy credits under this subsection (c) shall
5    provide for the contract's termination if the costs of the
6    generating unit supplying the renewable energy credits
7    subsequently begin to be recovered through rates regulated
8    by this State or any other state or states; and each
9    contract shall further provide that, in that event, the
10    supplier of the credits must return 110% of all payments
11    received under the contract. Amounts returned under the
12    requirements of this subparagraph (J) shall be retained by
13    the utility and all of these amounts shall be used for the
14    procurement of additional renewable energy credits from
15    new wind or new photovoltaic resources as defined in this
16    subsection (c). The long-term plan shall provide that these
17    renewable energy credits shall be procured in the next
18    procurement event.
19        Notwithstanding the limitations of this subparagraph
20    (J), renewable energy credits sourced from generating
21    units that are constructed, purchased, owned, or leased by
22    an electric utility as part of an approved project,
23    program, or pilot under Section 1-56 of this Act shall be
24    eligible to be counted toward the renewable energy
25    requirements of this subsection (c), regardless of how the
26    costs of these units are recovered.

 

 

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1        (K) The long-term renewable resources procurement plan
2    developed by the Agency in accordance with subparagraph (A)
3    of this paragraph (1) shall include an Adjustable Block
4    program for the procurement of renewable energy credits
5    from new photovoltaic projects that are distributed
6    renewable energy generation devices or new photovoltaic
7    community renewable generation projects. The Adjustable
8    Block program shall be designed to be continuously open in
9    order to provide for the steady, predictable, and
10    sustainable growth of new solar photovoltaic development
11    in Illinois. To this end, the Adjustable Block program
12    shall provide a transparent annual schedule of prices and
13    quantities to enable the photovoltaic market to scale up
14    and for renewable energy credit prices to adjust at a
15    predictable rate over time. The prices set by the
16    Adjustable Block program can be reflected as a set value or
17    as the product of a formula.
18        The Adjustable Block program shall include for each
19    category of eligible projects: a schedule of standard block
20    purchase prices to be offered; a series of steps, with
21    associated nameplate capacity and purchase prices that
22    adjust from step to step; and automatic opening of the next
23    step as soon as the nameplate capacity and available
24    purchase prices for an open step are fully committed or
25    reserved. Only projects energized on or after June 1, 2017
26    shall be eligible for the Adjustable Block program. The

 

 

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1    Agency shall develop program features and implementation
2    processes that create consistent market signals, making
3    the program predictable and sustainable for solar industry
4    companies, thus allowing them to scale up long-term
5    Illinois-based hiring and investment activities. For each
6    block group the Agency shall determine the number of
7    blocks, the amount of generation capacity in each block,
8    and the purchase price for each block, provided that the
9    purchase price provided and the total amount of generation
10    in all blocks for all block groups shall be sufficient to
11    meet the goals in this subsection (c). The Agency shall
12    establish program eligibility requirements that ensure
13    that projects that enter the program are sufficiently
14    mature to indicate a demonstrable path to completion.
15        The Agency may periodically review its prior decisions
16    establishing the number of blocks, the amount of generation
17    capacity in each block, and the purchase price for each
18    block, and may propose, on an expedited basis, changes to
19    these previously set values, including but not limited to
20    redistributing these amounts and the available funds as
21    necessary and appropriate, subject to Commission approval
22    as part of the periodic plan revision process described in
23    Section 16-111.5 of the Public Utilities Act. The Agency
24    may define different block sizes, purchase prices, or other
25    distinct terms and conditions for projects located in
26    different utility service territories if the Agency deems

 

 

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1    it necessary to meet the goals in this subsection (c).
2        The Adjustable Block program shall include at least the
3    following block groups in at least the following amounts,
4    which may be adjusted upon review by the Agency and
5    approval by the Commission as described in this
6    subparagraph (K):
7            (i) At least 25% from distributed renewable energy
8        generation devices with a nameplate capacity of no more
9        than 25 10 kilowatts.
10            (ii) At least 25% from distributed renewable
11        energy generation devices with a nameplate capacity of
12        more than 25 10 kilowatts and no more than 2,000
13        kilowatts. The Agency may create sub-categories within
14        this category to account for the differences between
15        projects for small commercial customers, large
16        commercial customers, and public or non-profit
17        customers.
18            (iii) At least 25% from photovoltaic community
19        renewable generation projects.
20            (iv) The remaining 25% shall be allocated as
21        specified by the Agency in the long-term renewable
22        resources procurement plan in order to respond to
23        market demand.
24        The Adjustable Block program shall be designed to
25    ensure that renewable energy credits are procured from
26    photovoltaic distributed renewable energy generation

 

 

10100SB2080sam004- 149 -LRB101 11122 RJF 59369 a

1    devices and new photovoltaic community renewable energy
2    generation projects in diverse locations and are not
3    concentrated in a few geographic areas.
4        (L) The procurement of photovoltaic renewable energy
5    credits under items (i) through (iv) of subparagraph (K) of
6    this paragraph (1) shall be subject to the following
7    contract and payment terms:
8            (i) The Agency shall procure contracts of at least
9        15 years in length.
10            (ii) For those renewable energy credits that
11        qualify and are procured under item (i) of subparagraph
12        (K) of this paragraph (1), the renewable energy credit
13        purchase price shall be paid in full by the contracting
14        utilities at the time that the facility producing the
15        renewable energy credits is interconnected at the
16        distribution system level of the utility and
17        energized. The electric utility shall receive and
18        retire all renewable energy credits generated by the
19        project for the first 15 years of operation.
20            (iii) For those renewable energy credits that
21        qualify and are procured under item (ii) and (iii) of
22        subparagraph (K) of this paragraph (1) and any
23        additional categories of distributed generation
24        included in the long-term renewable resources
25        procurement plan and approved by the Commission, 20
26        percent of the renewable energy credit purchase price

 

 

10100SB2080sam004- 150 -LRB101 11122 RJF 59369 a

1        shall be paid by the contracting utilities at the time
2        that the facility producing the renewable energy
3        credits is interconnected at the distribution system
4        level of the utility and energized. The remaining
5        portion shall be paid ratably over the subsequent
6        4-year period. The electric utility shall receive and
7        retire all renewable energy credits generated by the
8        project for the first 15 years of operation.
9            (iv) Each contract shall include provisions to
10        ensure the delivery of the renewable energy credits for
11        the full term of the contract.
12            (v) The utility shall be the counterparty to the
13        contracts executed under this subparagraph (L) that
14        are approved by the Commission under the process
15        described in Section 16-111.5 of the Public Utilities
16        Act. No contract shall be executed for an amount that
17        is less than one renewable energy credit per year.
18            (vi) If, at any time, approved applications for the
19        Adjustable Block program exceed funds collected by the
20        electric utility or would cause the Agency to exceed
21        the limitation described in subparagraph (E) of this
22        paragraph (1) on the amount of renewable energy
23        resources that may be procured, then the Agency shall
24        consider future uncommitted funds to be reserved for
25        these contracts on a first-come, first-served basis,
26        with the delivery of renewable energy credits required

 

 

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1        beginning at the time that the reserved funds become
2        available.
3            (vii) Nothing in this Section shall require the
4        utility to advance any payment or pay any amounts that
5        exceed the actual amount of revenues collected by the
6        utility under paragraph (6) of this subsection (c) and
7        subsection (k) of Section 16-108 of the Public
8        Utilities Act, and contracts executed under this
9        Section shall expressly incorporate this limitation.
10            (viii) Notwithstanding items (ii) and (iii) of
11        this subparagraph (L), the Agency shall not be
12        restricted from offering additional payment structures
13        if it determines that such adjustments will better
14        achieve the goals of this subsection (c). Any such
15        adjustments shall be approved by the Commission as a
16        long-term plan amendment under Section 16-111.5 of the
17        Public Utilities Act.
18        (M) The Agency shall be authorized to retain one or
19    more experts or expert consulting firms to develop,
20    administer, implement, operate, and evaluate the
21    Adjustable Block program described in subparagraph (K) of
22    this paragraph (1), and the Agency shall retain the
23    consultant or consultants in the same manner, to the extent
24    practicable, as the Agency retains others to administer
25    provisions of this Act, including, but not limited to, the
26    procurement administrator. The selection of experts and

 

 

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1    expert consulting firms and the procurement process
2    described in this subparagraph (M) are exempt from the
3    requirements of Section 20-10 of the Illinois Procurement
4    Code, under Section 20-10 of that Code. The Agency shall
5    strive to minimize administrative expenses in the
6    implementation of the Adjustable Block program. Funds
7    needed to cover the administrative expenses for the
8    implementation of the Adjustable Block program shall not be
9    included as part of the limitations described in
10    subparagraph (E). The utilities shall be entitled to
11    recover the costs detailed in this subparagraph (M)
12    regardless of whether the costs are subject to the
13    limitations described in subparagraph (E) through the
14    automatic adjustment clause tariff under subsection (k) of
15    Section 16-108 of the Public Utilities Act.
16        The Agency and its consultant or consultants shall
17    monitor block activity, share program activity with
18    stakeholders and conduct regularly scheduled meetings to
19    discuss program activity and market conditions. If
20    necessary, the Agency may make prospective administrative
21    adjustments to the Adjustable Block program design, such as
22    redistributing available funds or making adjustments to
23    purchase prices as necessary to achieve the goals of this
24    subsection (c). Program modifications to any price,
25    capacity block, or other program element that do not
26    deviate from the Commission's approved value by more than

 

 

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1    25% shall take effect immediately and are not subject to
2    Commission review and approval. Program modifications to
3    any price, capacity block, or other program element that
4    deviate more than 25% from the Commission's approved value
5    must be approved by the Commission as a long-term plan
6    amendment under Section 16-111.5 of the Public Utilities
7    Act. The Agency shall consider stakeholder feedback when
8    making adjustments to the Adjustable Block design and shall
9    notify stakeholders in advance of any planned changes.
10        (N) The long-term renewable resources procurement plan
11    required by this subsection (c) shall include a community
12    renewable generation program. The Agency shall establish
13    the terms, conditions, and program requirements for
14    community renewable generation projects with a goal to
15    expand renewable energy generating facility access to a
16    broader group of energy consumers, to ensure robust
17    participation opportunities for residential and small
18    commercial customers and those who cannot install
19    renewable energy on their own properties. Any plan approved
20    by the Commission shall allow subscriptions to community
21    renewable generation projects to be portable and
22    transferable. For purposes of this subparagraph (N),
23    "portable" means that subscriptions may be retained by the
24    subscriber even if the subscriber relocates or changes its
25    address within the same utility service territory; and
26    "transferable" means that a subscriber may assign or sell

 

 

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1    subscriptions to another person within the same utility
2    service territory.
3        Electric utilities shall provide a monetary credit to a
4    subscriber's subsequent bill for service for the
5    proportional output of a community renewable generation
6    project attributable to that subscriber as specified in
7    Section 16-107.5 of the Public Utilities Act.
8        The Agency shall purchase renewable energy credits
9    from subscribed shares of photovoltaic community renewable
10    generation projects through the Adjustable Block program
11    described in subparagraph (K) of this paragraph (1) or
12    through the Illinois Solar for All Program described in
13    Section 1-56 of this Act. The project shall be deemed to be
14    fully subscribed and the Agency shall purchase all of the
15    renewable energy credits from photovoltaic community
16    renewable generation projects as long as a minimum of 80%
17    of the shares are subscribed. The electric utility shall
18    purchase any unsubscribed energy from community renewable
19    generation projects that are Qualifying Facilities ("QF")
20    under the electric utility's tariff for purchasing the
21    output from QFs under Public Utilities Regulatory Policies
22    Act of 1978.
23        The owners of and any subscribers to a community
24    renewable generation project shall not be considered
25    public utilities or alternative retail electricity
26    suppliers under the Public Utilities Act solely as a result

 

 

10100SB2080sam004- 155 -LRB101 11122 RJF 59369 a

1    of their interest in or subscription to a community
2    renewable generation project and shall not be required to
3    become an alternative retail electric supplier by
4    participating in a community renewable generation project
5    with a public utility.
6        (O) For the delivery year beginning June 1, 2018, the
7    long-term renewable resources procurement plan required by
8    this subsection (c) shall provide for the Agency to procure
9    contracts to continue offering the Illinois Solar for All
10    Program described in subsection (b) of Section 1-56 of this
11    Act, and the contracts approved by the Commission shall be
12    executed by the utilities that are subject to this
13    subsection (c). The long-term renewable resources
14    procurement plan shall allocate $50,000,000 5% of the funds
15    available under the plan for the applicable delivery year,
16    or $10,000,000 per delivery year, whichever is greater, to
17    fund the programs, and the plan shall determine the amount
18    of funding to be apportioned to the programs identified in
19    subsection (b) of Section 1-56 of this Act; provided that
20    for the delivery years beginning June 1, 2017, June 1,
21    2021, and June 1, 2025, the long-term renewable resources
22    procurement plan shall allocate an additional 10% of the
23    funds available under the plan for the applicable delivery
24    year, or $20,000,000 per delivery year, whichever is
25    greater, and $10,000,000 that of such funds in such year
26    shall be used by an electric utility that serves more than

 

 

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1    3,000,000 retail customers in the State to implement a
2    Commission-approved plan under Section 16-108.12 of the
3    Public Utilities Act. Funds allocated under this
4    subparagraph (O) shall not be included as part of the
5    limitations described in subparagraph (E) of this Section.
6    The utilities shall be entitled to recover the total cost
7    associated with procuring renewable energy credits
8    detailed in this subparagraph (O) regardless of whether the
9    costs are subject to the limitations described in
10    subparagraph (E) through the automatic adjustment clause
11    tariff under subsection (k) of Section 16-108 of the Public
12    Utilities Act. In making the determinations required under
13    this subparagraph (O), the Commission shall consider the
14    experience and performance under the programs and any
15    evaluation reports. The Commission shall also provide for
16    an independent evaluation of those programs on a periodic
17    basis that are funded under this subparagraph (O).
18        (P) All programs and procurements under this
19    subsection (c) shall be designed to encourage
20    participating projects to use a diverse and equitable
21    workforce and a diverse set of contractors, including
22    minority-owned businesses, disadvantaged businesses, trade
23    unions, graduates of any workforce training programs
24    administered under this Act, and small businesses. Any
25    incremental costs in renewable energy credits associated
26    with incentives or requirements to meet goals associated

 

 

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1    with geographic diversity, workforce diversity,
2    subcontractor diversity, or any other public policies
3    determined by the Agency and approved by the Commission,
4    shall not be included as part of the limitations described
5    in subparagraph (E). The utilities shall be entitled to
6    recover the incremental costs associated with procuring
7    renewable energy credits that also meet the public policy
8    goals detailed in this subparagraph (P) regardless of
9    whether the costs are subject to the limitations described
10    in subparagraph (E) through the automatic adjustment
11    clause tariff under subsection (k) of Section 16-108 of the
12    Public Utilities Act.
13        (2) (Blank).
14        (3) (Blank).
15        (4) The electric utility shall retire all renewable
16    energy credits used to comply with the standard.
17        (5) Beginning with the 2010 delivery year and ending
18    June 1, 2017, an electric utility subject to this
19    subsection (c) shall apply the lesser of the maximum
20    alternative compliance payment rate or the most recent
21    estimated alternative compliance payment rate for its
22    service territory for the corresponding compliance period,
23    established pursuant to subsection (d) of Section 16-115D
24    of the Public Utilities Act to its retail customers that
25    take service pursuant to the electric utility's hourly
26    pricing tariff or tariffs. The electric utility shall

 

 

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

 

 

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1    including, but not limited to, the costs of administering
2    and evaluating the Adjustable Block program, shall not be
3    included as part of the limitations described in
4    subparagraph (E) of paragraph (1).
5        (7) Renewable energy credits procured from new
6    photovoltaic projects or new distributed renewable energy
7    generation devices under this Section after June 1, 2017
8    (the effective date of Public Act 99-906) must be procured
9    from devices installed by a qualified person in compliance
10    with the requirements of Section 16-128A of the Public
11    Utilities Act and any rules or regulations adopted
12    thereunder.
13        In meeting the renewable energy requirements of this
14    subsection (c), to the extent feasible and consistent with
15    State and federal law, the renewable energy credit
16    procurements, Adjustable Block solar program, and
17    community renewable generation program shall provide
18    employment opportunities for all segments of the
19    population and workforce, including minority-owned and
20    female-owned business enterprises, and shall not,
21    consistent with State and federal law, discriminate based
22    on race or socioeconomic status.
23        (8) Renewable energy credits procured from new wind
24    projects and new utility-scale solar projects pursuant to
25    Agency procurement events occurring after this amendatory
26    Act of the 101st General Assembly must be from facilities

 

 

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1    built by contractors that must enter into a project labor
2    agreement as defined by this Act prior to construction. A
3    copy of the project labor agreement shall be filed with the
4    Agency.
5    (d) Clean coal portfolio standard.
6        (1) The procurement plans shall include electricity
7    generated using clean coal. Each utility shall enter into
8    one or more sourcing agreements with the initial clean coal
9    facility, as provided in paragraph (3) of this subsection
10    (d), covering electricity generated by the initial clean
11    coal facility representing at least 5% of each utility's
12    total supply to serve the load of eligible retail customers
13    in 2015 and each year thereafter, as described in paragraph
14    (3) of this subsection (d), subject to the limits specified
15    in paragraph (2) of this subsection (d). It is the goal of
16    the State that by January 1, 2025, 25% of the electricity
17    used in the State shall be generated by cost-effective
18    clean coal facilities. For purposes of this subsection (d),
19    "cost-effective" means that the expenditures pursuant to
20    such sourcing agreements do not cause the limit stated in
21    paragraph (2) of this subsection (d) to be exceeded and do
22    not exceed cost-based benchmarks, which shall be developed
23    to assess all expenditures pursuant to such sourcing
24    agreements covering electricity generated by clean coal
25    facilities, other than the initial clean coal facility, by
26    the procurement administrator, in consultation with the

 

 

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1    Commission staff, Agency staff, and the procurement
2    monitor and shall be subject to Commission review and
3    approval.
4        A utility party to a sourcing agreement shall
5    immediately retire any emission credits that it receives in
6    connection with the electricity covered by such agreement.
7        Utilities shall maintain adequate records documenting
8    the purchases under the sourcing agreement to comply with
9    this subsection (d) and shall file an accounting with the
10    load forecast that must be filed with the Agency by July 15
11    of each year, in accordance with subsection (d) of Section
12    16-111.5 of the Public Utilities Act.
13        A utility shall be deemed to have complied with the
14    clean coal portfolio standard specified in this subsection
15    (d) if the utility enters into a sourcing agreement as
16    required by this subsection (d).
17        (2) For purposes of this subsection (d), the required
18    execution of sourcing agreements with the initial clean
19    coal facility for a particular year shall be measured as a
20    percentage of the actual amount of electricity
21    (megawatt-hours) supplied by the electric utility to
22    eligible retail customers in the planning year ending
23    immediately prior to the agreement's execution. For
24    purposes of this subsection (d), the amount paid per
25    kilowatthour means the total amount paid for electric
26    service expressed on a per kilowatthour basis. For purposes

 

 

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1    of this subsection (d), the total amount paid for electric
2    service includes without limitation amounts paid for
3    supply, transmission, distribution, surcharges and add-on
4    taxes.
5        Notwithstanding the requirements of this subsection
6    (d), the total amount paid under sourcing agreements with
7    clean coal facilities pursuant to the procurement plan for
8    any given year shall be reduced by an amount necessary to
9    limit the annual estimated average net increase due to the
10    costs of these resources included in the amounts paid by
11    eligible retail customers in connection with electric
12    service to:
13            (A) in 2010, no more than 0.5% of the amount paid
14        per kilowatthour by those customers during the year
15        ending May 31, 2009;
16            (B) in 2011, the greater of an additional 0.5% of
17        the amount paid per kilowatthour by those customers
18        during the year ending May 31, 2010 or 1% of the amount
19        paid per kilowatthour by those customers during the
20        year ending May 31, 2009;
21            (C) in 2012, the greater of an additional 0.5% of
22        the amount paid per kilowatthour by those customers
23        during the year ending May 31, 2011 or 1.5% of the
24        amount paid per kilowatthour by those customers during
25        the year ending May 31, 2009;
26            (D) in 2013, the greater of an additional 0.5% of

 

 

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1        the amount paid per kilowatthour by those customers
2        during the year ending May 31, 2012 or 2% of the amount
3        paid per kilowatthour by those customers during the
4        year ending May 31, 2009; and
5            (E) thereafter, the total amount paid under
6        sourcing agreements with clean coal facilities
7        pursuant to the procurement plan for any single year
8        shall be reduced by an amount necessary to limit the
9        estimated average net increase due to the cost of these
10        resources included in the amounts paid by eligible
11        retail customers in connection with electric service
12        to no more than the greater of (i) 2.015% of the amount
13        paid per kilowatthour by those customers during the
14        year ending May 31, 2009 or (ii) the incremental amount
15        per kilowatthour paid for these resources in 2013.
16        These requirements may be altered only as provided by
17        statute.
18        No later than June 30, 2015, the Commission shall
19    review the limitation on the total amount paid under
20    sourcing agreements, if any, with clean coal facilities
21    pursuant to this subsection (d) and report to the General
22    Assembly its findings as to whether that limitation unduly
23    constrains the amount of electricity generated by
24    cost-effective clean coal facilities that is covered by
25    sourcing agreements.
26        (3) Initial clean coal facility. In order to promote

 

 

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1    development of clean coal facilities in Illinois, each
2    electric utility subject to this Section shall execute a
3    sourcing agreement to source electricity from a proposed
4    clean coal facility in Illinois (the "initial clean coal
5    facility") that will have a nameplate capacity of at least
6    500 MW when commercial operation commences, that has a
7    final Clean Air Act permit on June 1, 2009 (the effective
8    date of Public Act 95-1027), and that will meet the
9    definition of clean coal facility in Section 1-10 of this
10    Act when commercial operation commences. The sourcing
11    agreements with this initial clean coal facility shall be
12    subject to both approval of the initial clean coal facility
13    by the General Assembly and satisfaction of the
14    requirements of paragraph (4) of this subsection (d) and
15    shall be executed within 90 days after any such approval by
16    the General Assembly. The Agency and the Commission shall
17    have authority to inspect all books and records associated
18    with the initial clean coal facility during the term of
19    such a sourcing agreement. A utility's sourcing agreement
20    for electricity produced by the initial clean coal facility
21    shall include:
22            (A) a formula contractual price (the "contract
23        price") approved pursuant to paragraph (4) of this
24        subsection (d), which shall:
25                (i) be determined using a cost of service
26            methodology employing either a level or deferred

 

 

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1            capital recovery component, based on a capital
2            structure consisting of 45% equity and 55% debt,
3            and a return on equity as may be approved by the
4            Federal Energy Regulatory Commission, which in any
5            case may not exceed the lower of 11.5% or the rate
6            of return approved by the General Assembly
7            pursuant to paragraph (4) of this subsection (d);
8            and
9                (ii) provide that all miscellaneous net
10            revenue, including but not limited to net revenue
11            from the sale of emission allowances, if any,
12            substitute natural gas, if any, grants or other
13            support provided by the State of Illinois or the
14            United States Government, firm transmission
15            rights, if any, by-products produced by the
16            facility, energy or capacity derived from the
17            facility and not covered by a sourcing agreement
18            pursuant to paragraph (3) of this subsection (d) or
19            item (5) of subsection (d) of Section 16-115 of the
20            Public Utilities Act, whether generated from the
21            synthesis gas derived from coal, from SNG, or from
22            natural gas, shall be credited against the revenue
23            requirement for this initial clean coal facility;
24            (B) power purchase provisions, which shall:
25                (i) provide that the utility party to such
26            sourcing agreement shall pay the contract price

 

 

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1            for electricity delivered under such sourcing
2            agreement;
3                (ii) require delivery of electricity to the
4            regional transmission organization market of the
5            utility that is party to such sourcing agreement;
6                (iii) require the utility party to such
7            sourcing agreement to buy from the initial clean
8            coal facility in each hour an amount of energy
9            equal to all clean coal energy made available from
10            the initial clean coal facility during such hour
11            times a fraction, the numerator of which is such
12            utility's retail market sales of electricity
13            (expressed in kilowatthours sold) in the State
14            during the prior calendar month and the
15            denominator of which is the total retail market
16            sales of electricity (expressed in kilowatthours
17            sold) in the State by utilities during such prior
18            month and the sales of electricity (expressed in
19            kilowatthours sold) in the State by alternative
20            retail electric suppliers during such prior month
21            that are subject to the requirements of this
22            subsection (d) and paragraph (5) of subsection (d)
23            of Section 16-115 of the Public Utilities Act,
24            provided that the amount purchased by the utility
25            in any year will be limited by paragraph (2) of
26            this subsection (d); and

 

 

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

 

 

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1            subsection (d);
2                (ii) provide that the utility's payment
3            obligation in respect of the quantity of
4            electricity determined pursuant to the preceding
5            clause (i) shall be limited to an amount equal to
6            (1) the difference between the contract price
7            determined pursuant to subparagraph (A) of
8            paragraph (3) of this subsection (d) and the
9            day-ahead price for electricity delivered to the
10            regional transmission organization market of the
11            utility that is party to such sourcing agreement
12            (or any successor delivery point at which such
13            utility's supply obligations are financially
14            settled on an hourly basis) (the "reference
15            price") on the day preceding the day on which the
16            electricity is delivered to the initial clean coal
17            facility busbar, multiplied by (2) the quantity of
18            electricity determined pursuant to the preceding
19            clause (i); and
20                (iii) not require the utility to take physical
21            delivery of the electricity produced by the
22            facility;
23            (D) general provisions, which shall:
24                (i) specify a term of no more than 30 years,
25            commencing on the commercial operation date of the
26            facility;

 

 

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1                (ii) provide that utilities shall maintain
2            adequate records documenting purchases under the
3            sourcing agreements entered into to comply with
4            this subsection (d) and shall file an accounting
5            with the load forecast that must be filed with the
6            Agency by July 15 of each year, in accordance with
7            subsection (d) of Section 16-111.5 of the Public
8            Utilities Act;
9                (iii) provide that all costs associated with
10            the initial clean coal facility will be
11            periodically reported to the Federal Energy
12            Regulatory Commission and to purchasers in
13            accordance with applicable laws governing
14            cost-based wholesale power contracts;
15                (iv) permit the Illinois Power Agency to
16            assume ownership of the initial clean coal
17            facility, without monetary consideration and
18            otherwise on reasonable terms acceptable to the
19            Agency, if the Agency so requests no less than 3
20            years prior to the end of the stated contract term;
21                (v) require the owner of the initial clean coal
22            facility to provide documentation to the
23            Commission each year, starting in the facility's
24            first year of commercial operation, accurately
25            reporting the quantity of carbon emissions from
26            the facility that have been captured and

 

 

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1            sequestered and report any quantities of carbon
2            released from the site or sites at which carbon
3            emissions were sequestered in prior years, based
4            on continuous monitoring of such sites. If, in any
5            year after the first year of commercial operation,
6            the owner of the facility fails to demonstrate that
7            the initial clean coal facility captured and
8            sequestered at least 50% of the total carbon
9            emissions that the facility would otherwise emit
10            or that sequestration of emissions from prior
11            years has failed, resulting in the release of
12            carbon dioxide into the atmosphere, the owner of
13            the facility must offset excess emissions. Any
14            such carbon offsets must be permanent, additional,
15            verifiable, real, located within the State of
16            Illinois, and legally and practicably enforceable.
17            The cost of such offsets for the facility that are
18            not recoverable shall not exceed $15 million in any
19            given year. No costs of any such purchases of
20            carbon offsets may be recovered from a utility or
21            its customers. All carbon offsets purchased for
22            this purpose and any carbon emission credits
23            associated with sequestration of carbon from the
24            facility must be permanently retired. The initial
25            clean coal facility shall not forfeit its
26            designation as a clean coal facility if the

 

 

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1            facility fails to fully comply with the applicable
2            carbon sequestration requirements in any given
3            year, provided the requisite offsets are
4            purchased. However, the Attorney General, on
5            behalf of the People of the State of Illinois, may
6            specifically enforce the facility's sequestration
7            requirement and the other terms of this contract
8            provision. Compliance with the sequestration
9            requirements and offset purchase requirements
10            specified in paragraph (3) of this subsection (d)
11            shall be reviewed annually by an independent
12            expert retained by the owner of the initial clean
13            coal facility, with the advance written approval
14            of the Attorney General. The Commission may, in the
15            course of the review specified in item (vii),
16            reduce the allowable return on equity for the
17            facility if the facility willfully fails to comply
18            with the carbon capture and sequestration
19            requirements set forth in this item (v);
20                (vi) include limits on, and accordingly
21            provide for modification of, the amount the
22            utility is required to source under the sourcing
23            agreement consistent with paragraph (2) of this
24            subsection (d);
25                (vii) require Commission review: (1) to
26            determine the justness, reasonableness, and

 

 

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1            prudence of the inputs to the formula referenced in
2            subparagraphs (A)(i) through (A)(iii) of paragraph
3            (3) of this subsection (d), prior to an adjustment
4            in those inputs including, without limitation, the
5            capital structure and return on equity, fuel
6            costs, and other operations and maintenance costs
7            and (2) to approve the costs to be passed through
8            to customers under the sourcing agreement by which
9            the utility satisfies its statutory obligations.
10            Commission review shall occur no less than every 3
11            years, regardless of whether any adjustments have
12            been proposed, and shall be completed within 9
13            months;
14                (viii) limit the utility's obligation to such
15            amount as the utility is allowed to recover through
16            tariffs filed with the Commission, provided that
17            neither the clean coal facility nor the utility
18            waives any right to assert federal pre-emption or
19            any other argument in response to a purported
20            disallowance of recovery costs;
21                (ix) limit the utility's or alternative retail
22            electric supplier's obligation to incur any
23            liability until such time as the facility is in
24            commercial operation and generating power and
25            energy and such power and energy is being delivered
26            to the facility busbar;

 

 

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1                (x) provide that the owner or owners of the
2            initial clean coal facility, which is the
3            counterparty to such sourcing agreement, shall
4            have the right from time to time to elect whether
5            the obligations of the utility party thereto shall
6            be governed by the power purchase provisions or the
7            contract for differences provisions;
8                (xi) append documentation showing that the
9            formula rate and contract, insofar as they relate
10            to the power purchase provisions, have been
11            approved by the Federal Energy Regulatory
12            Commission pursuant to Section 205 of the Federal
13            Power Act;
14                (xii) provide that any changes to the terms of
15            the contract, insofar as such changes relate to the
16            power purchase provisions, are subject to review
17            under the public interest standard applied by the
18            Federal Energy Regulatory Commission pursuant to
19            Sections 205 and 206 of the Federal Power Act; and
20                (xiii) conform with customary lender
21            requirements in power purchase agreements used as
22            the basis for financing non-utility generators.
23        (4) Effective date of sourcing agreements with the
24    initial clean coal facility. Any proposed sourcing
25    agreement with the initial clean coal facility shall not
26    become effective unless the following reports are prepared

 

 

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1    and submitted and authorizations and approvals obtained:
2            (i) Facility cost report. The owner of the initial
3        clean coal facility shall submit to the Commission, the
4        Agency, and the General Assembly a front-end
5        engineering and design study, a facility cost report,
6        method of financing (including but not limited to
7        structure and associated costs), and an operating and
8        maintenance cost quote for the facility (collectively
9        "facility cost report"), which shall be prepared in
10        accordance with the requirements of this paragraph (4)
11        of subsection (d) of this Section, and shall provide
12        the Commission and the Agency access to the work
13        papers, relied upon documents, and any other backup
14        documentation related to the facility cost report.
15            (ii) Commission report. Within 6 months following
16        receipt of the facility cost report, the Commission, in
17        consultation with the Agency, shall submit a report to
18        the General Assembly setting forth its analysis of the
19        facility cost report. Such report shall include, but
20        not be limited to, a comparison of the costs associated
21        with electricity generated by the initial clean coal
22        facility to the costs associated with electricity
23        generated by other types of generation facilities, an
24        analysis of the rate impacts on residential and small
25        business customers over the life of the sourcing
26        agreements, and an analysis of the likelihood that the

 

 

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1        initial clean coal facility will commence commercial
2        operation by and be delivering power to the facility's
3        busbar by 2016. To assist in the preparation of its
4        report, the Commission, in consultation with the
5        Agency, may hire one or more experts or consultants,
6        the costs of which shall be paid for by the owner of
7        the initial clean coal facility. The Commission and
8        Agency may begin the process of selecting such experts
9        or consultants prior to receipt of the facility cost
10        report.
11            (iii) General Assembly approval. The proposed
12        sourcing agreements shall not take effect unless,
13        based on the facility cost report and the Commission's
14        report, the General Assembly enacts authorizing
15        legislation approving (A) the projected price, stated
16        in cents per kilowatthour, to be charged for
17        electricity generated by the initial clean coal
18        facility, (B) the projected impact on residential and
19        small business customers' bills over the life of the
20        sourcing agreements, and (C) the maximum allowable
21        return on equity for the project; and
22            (iv) Commission review. If the General Assembly
23        enacts authorizing legislation pursuant to
24        subparagraph (iii) approving a sourcing agreement, the
25        Commission shall, within 90 days of such enactment,
26        complete a review of such sourcing agreement. During

 

 

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1        such time period, the Commission shall implement any
2        directive of the General Assembly, resolve any
3        disputes between the parties to the sourcing agreement
4        concerning the terms of such agreement, approve the
5        form of such agreement, and issue an order finding that
6        the sourcing agreement is prudent and reasonable.
7        The facility cost report shall be prepared as follows:
8            (A) The facility cost report shall be prepared by
9        duly licensed engineering and construction firms
10        detailing the estimated capital costs payable to one or
11        more contractors or suppliers for the engineering,
12        procurement and construction of the components
13        comprising the initial clean coal facility and the
14        estimated costs of operation and maintenance of the
15        facility. The facility cost report shall include:
16                (i) an estimate of the capital cost of the core
17            plant based on one or more front end engineering
18            and design studies for the gasification island and
19            related facilities. The core plant shall include
20            all civil, structural, mechanical, electrical,
21            control, and safety systems.
22                (ii) an estimate of the capital cost of the
23            balance of the plant, including any capital costs
24            associated with sequestration of carbon dioxide
25            emissions and all interconnects and interfaces
26            required to operate the facility, such as

 

 

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1            transmission of electricity, construction or
2            backfeed power supply, pipelines to transport
3            substitute natural gas or carbon dioxide, potable
4            water supply, natural gas supply, water supply,
5            water discharge, landfill, access roads, and coal
6            delivery.
7            The quoted construction costs shall be expressed
8        in nominal dollars as of the date that the quote is
9        prepared and shall include capitalized financing costs
10        during construction, taxes, insurance, and other
11        owner's costs, and an assumed escalation in materials
12        and labor beyond the date as of which the construction
13        cost quote is expressed.
14            (B) The front end engineering and design study for
15        the gasification island and the cost study for the
16        balance of plant shall include sufficient design work
17        to permit quantification of major categories of
18        materials, commodities and labor hours, and receipt of
19        quotes from vendors of major equipment required to
20        construct and operate the clean coal facility.
21            (C) The facility cost report shall also include an
22        operating and maintenance cost quote that will provide
23        the estimated cost of delivered fuel, personnel,
24        maintenance contracts, chemicals, catalysts,
25        consumables, spares, and other fixed and variable
26        operations and maintenance costs. The delivered fuel

 

 

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1        cost estimate will be provided by a recognized third
2        party expert or experts in the fuel and transportation
3        industries. The balance of the operating and
4        maintenance cost quote, excluding delivered fuel
5        costs, will be developed based on the inputs provided
6        by duly licensed engineering and construction firms
7        performing the construction cost quote, potential
8        vendors under long-term service agreements and plant
9        operating agreements, or recognized third party plant
10        operator or operators.
11            The operating and maintenance cost quote
12        (including the cost of the front end engineering and
13        design study) shall be expressed in nominal dollars as
14        of the date that the quote is prepared and shall
15        include taxes, insurance, and other owner's costs, and
16        an assumed escalation in materials and labor beyond the
17        date as of which the operating and maintenance cost
18        quote is expressed.
19            (D) The facility cost report shall also include an
20        analysis of the initial clean coal facility's ability
21        to deliver power and energy into the applicable
22        regional transmission organization markets and an
23        analysis of the expected capacity factor for the
24        initial clean coal facility.
25            (E) Amounts paid to third parties unrelated to the
26        owner or owners of the initial clean coal facility to

 

 

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1        prepare the core plant construction cost quote,
2        including the front end engineering and design study,
3        and the operating and maintenance cost quote will be
4        reimbursed through Coal Development Bonds.
5        (5) Re-powering and retrofitting coal-fired power
6    plants previously owned by Illinois utilities to qualify as
7    clean coal facilities. During the 2009 procurement
8    planning process and thereafter, the Agency and the
9    Commission shall consider sourcing agreements covering
10    electricity generated by power plants that were previously
11    owned by Illinois utilities and that have been or will be
12    converted into clean coal facilities, as defined by Section
13    1-10 of this Act. Pursuant to such procurement planning
14    process, the owners of such facilities may propose to the
15    Agency sourcing agreements with utilities and alternative
16    retail electric suppliers required to comply with
17    subsection (d) of this Section and item (5) of subsection
18    (d) of Section 16-115 of the Public Utilities Act, covering
19    electricity generated by such facilities. In the case of
20    sourcing agreements that are power purchase agreements,
21    the contract price for electricity sales shall be
22    established on a cost of service basis. In the case of
23    sourcing agreements that are contracts for differences,
24    the contract price from which the reference price is
25    subtracted shall be established on a cost of service basis.
26    The Agency and the Commission may approve any such utility

 

 

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1    sourcing agreements that do not exceed cost-based
2    benchmarks developed by the procurement administrator, in
3    consultation with the Commission staff, Agency staff and
4    the procurement monitor, subject to Commission review and
5    approval. The Commission shall have authority to inspect
6    all books and records associated with these clean coal
7    facilities during the term of any such contract.
8        (6) Costs incurred under this subsection (d) or
9    pursuant to a contract entered into under this subsection
10    (d) shall be deemed prudently incurred and reasonable in
11    amount and the electric utility shall be entitled to full
12    cost recovery pursuant to the tariffs filed with the
13    Commission.
14    (d-5) Zero emission standard.
15        (1) Beginning with the delivery year commencing on June
16    1, 2017, the Agency shall, for electric utilities that
17    serve at least 100,000 retail customers in this State,
18    procure contracts with zero emission facilities that are
19    reasonably capable of generating cost-effective zero
20    emission credits in an amount approximately equal to 16% of
21    the actual amount of electricity delivered by each electric
22    utility to retail customers in the State during calendar
23    year 2014. For an electric utility serving fewer than
24    100,000 retail customers in this State that requested,
25    under Section 16-111.5 of the Public Utilities Act, that
26    the Agency procure power and energy for all or a portion of

 

 

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1    the utility's Illinois load for the delivery year
2    commencing June 1, 2016, the Agency shall procure contracts
3    with zero emission facilities that are reasonably capable
4    of generating cost-effective zero emission credits in an
5    amount approximately equal to 16% of the portion of power
6    and energy to be procured by the Agency for the utility.
7    The duration of the contracts procured under this
8    subsection (d-5) shall be for a term of 10 years ending May
9    31, 2027. The quantity of zero emission credits to be
10    procured under the contracts shall be all of the zero
11    emission credits generated by the zero emission facility in
12    each delivery year; however, if the zero emission facility
13    is owned by more than one entity, then the quantity of zero
14    emission credits to be procured under the contracts shall
15    be the amount of zero emission credits that are generated
16    from the portion of the zero emission facility that is
17    owned by the winning supplier.
18        The 16% value identified in this paragraph (1) is the
19    average of the percentage targets in subparagraph (B) of
20    paragraph (1) of subsection (c) of this Section 1-75 of
21    this Act for the 5 delivery years beginning June 1, 2017.
22        The procurement process shall be subject to the
23    following provisions:
24            (A) Those zero emission facilities that intend to
25        participate in the procurement shall submit to the
26        Agency the following eligibility information for each

 

 

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1        zero emission facility on or before the date
2        established by the Agency:
3                (i) the in-service date and remaining useful
4            life of the zero emission facility;
5                (ii) the amount of power generated annually
6            for each of the years 2005 through 2015, and the
7            projected zero emission credits to be generated
8            over the remaining useful life of the zero emission
9            facility, which shall be used to determine the
10            capability of each facility;
11                (iii) the annual zero emission facility cost
12            projections, expressed on a per megawatthour
13            basis, over the next 6 delivery years, which shall
14            include the following: operation and maintenance
15            expenses; fully allocated overhead costs, which
16            shall be allocated using the methodology developed
17            by the Institute for Nuclear Power Operations;
18            fuel expenditures; non-fuel capital expenditures;
19            spent fuel expenditures; a return on working
20            capital; the cost of operational and market risks
21            that could be avoided by ceasing operation; and any
22            other costs necessary for continued operations,
23            provided that "necessary" means, for purposes of
24            this item (iii), that the costs could reasonably be
25            avoided only by ceasing operations of the zero
26            emission facility; and

 

 

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1                (iv) a commitment to continue operating, for
2            the duration of the contract or contracts executed
3            under the procurement held under this subsection
4            (d-5), the zero emission facility that produces
5            the zero emission credits to be procured in the
6            procurement.
7            The information described in item (iii) of this
8        subparagraph (A) may be submitted on a confidential
9        basis and shall be treated and maintained by the
10        Agency, the procurement administrator, and the
11        Commission as confidential and proprietary and exempt
12        from disclosure under subparagraphs (a) and (g) of
13        paragraph (1) of Section 7 of the Freedom of
14        Information Act. The Office of Attorney General shall
15        have access to, and maintain the confidentiality of,
16        such information pursuant to Section 6.5 of the
17        Attorney General Act.
18            (B) The price for each zero emission credit
19        procured under this subsection (d-5) for each delivery
20        year shall be in an amount that equals the Social Cost
21        of Carbon, expressed on a price per megawatthour basis.
22        However, to ensure that the procurement remains
23        affordable to retail customers in this State if
24        electricity prices increase, the price in an
25        applicable delivery year shall be reduced below the
26        Social Cost of Carbon by the amount ("Price

 

 

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1        Adjustment") by which the market price index for the
2        applicable delivery year exceeds the baseline market
3        price index for the consecutive 12-month period ending
4        May 31, 2016. If the Price Adjustment is greater than
5        or equal to the Social Cost of Carbon in an applicable
6        delivery year, then no payments shall be due in that
7        delivery year. The components of this calculation are
8        defined as follows:
9                (i) Social Cost of Carbon: The Social Cost of
10            Carbon is $16.50 per megawatthour, which is based
11            on the U.S. Interagency Working Group on Social
12            Cost of Carbon's price in the August 2016 Technical
13            Update using a 3% discount rate, adjusted for
14            inflation for each year of the program. Beginning
15            with the delivery year commencing June 1, 2023, the
16            price per megawatthour shall increase by $1 per
17            megawatthour, and continue to increase by an
18            additional $1 per megawatthour each delivery year
19            thereafter.
20                (ii) Baseline market price index: The baseline
21            market price index for the consecutive 12-month
22            period ending May 31, 2016 is $31.40 per
23            megawatthour, which is based on the sum of (aa) the
24            average day-ahead energy price across all hours of
25            such 12-month period at the PJM Interconnection
26            LLC Northern Illinois Hub, (bb) 50% multiplied by

 

 

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1            the Base Residual Auction, or its successor,
2            capacity price for the rest of the RTO zone group
3            determined by PJM Interconnection LLC, divided by
4            24 hours per day, and (cc) 50% multiplied by the
5            Planning Resource Auction, or its successor,
6            capacity price for Zone 4 determined by the
7            Midcontinent Independent System Operator, Inc.,
8            divided by 24 hours per day.
9                (iii) Market price index: The market price
10            index for a delivery year shall be the sum of
11            projected energy prices and projected capacity
12            prices determined as follows:
13                    (aa) Projected energy prices: the
14                projected energy prices for the applicable
15                delivery year shall be calculated once for the
16                year using the forward market price for the PJM
17                Interconnection, LLC Northern Illinois Hub.
18                The forward market price shall be calculated as
19                follows: the energy forward prices for each
20                month of the applicable delivery year averaged
21                for each trade date during the calendar year
22                immediately preceding that delivery year to
23                produce a single energy forward price for the
24                delivery year. The forward market price
25                calculation shall use data published by the
26                Intercontinental Exchange, or its successor.

 

 

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1                    (bb) Projected capacity prices:
2                        (I) For the delivery years commencing
3                    June 1, 2017, June 1, 2018, and June 1,
4                    2019, the projected capacity price shall
5                    be equal to the sum of (1) 50% multiplied
6                    by the Base Residual Auction, or its
7                    successor, price for the rest of the RTO
8                    zone group as determined by PJM
9                    Interconnection LLC, divided by 24 hours
10                    per day and, (2) 50% multiplied by the
11                    resource auction price determined in the
12                    resource auction administered by the
13                    Midcontinent Independent System Operator,
14                    Inc., in which the largest percentage of
15                    load cleared for Local Resource Zone 4,
16                    divided by 24 hours per day, and where such
17                    price is determined by the Midcontinent
18                    Independent System Operator, Inc.
19                        (II) For the delivery year commencing
20                    June 1, 2020, and each year thereafter, the
21                    projected capacity price shall be equal to
22                    the sum of (1) 50% multiplied by the Base
23                    Residual Auction, or its successor, price
24                    for the ComEd zone as determined by PJM
25                    Interconnection LLC, divided by 24 hours
26                    per day, and (2) 50% multiplied by the

 

 

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1                    resource auction price determined in the
2                    resource auction administered by the
3                    Midcontinent Independent System Operator,
4                    Inc., in which the largest percentage of
5                    load cleared for Local Resource Zone 4,
6                    divided by 24 hours per day, and where such
7                    price is determined by the Midcontinent
8                    Independent System Operator, Inc.
9            For purposes of this subsection (d-5):
10                "Rest of the RTO" and "ComEd Zone" shall have
11            the meaning ascribed to them by PJM
12            Interconnection, LLC.
13                "RTO" means regional transmission
14            organization.
15            (C) No later than 45 days after June 1, 2017 (the
16        effective date of Public Act 99-906), the Agency shall
17        publish its proposed zero emission standard
18        procurement plan. The plan shall be consistent with the
19        provisions of this paragraph (1) and shall provide that
20        winning bids shall be selected based on public interest
21        criteria that include, but are not limited to,
22        minimizing carbon dioxide emissions that result from
23        electricity consumed in Illinois and minimizing sulfur
24        dioxide, nitrogen oxide, and particulate matter
25        emissions that adversely affect the citizens of this
26        State. In particular, the selection of winning bids

 

 

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1        shall take into account the incremental environmental
2        benefits resulting from the procurement, such as any
3        existing environmental benefits that are preserved by
4        the procurements held under Public Act 99-906 and would
5        cease to exist if the procurements were not held,
6        including the preservation of zero emission
7        facilities. The plan shall also describe in detail how
8        each public interest factor shall be considered and
9        weighted in the bid selection process to ensure that
10        the public interest criteria are applied to the
11        procurement and given full effect.
12            For purposes of developing the plan, the Agency
13        shall consider any reports issued by a State agency,
14        board, or commission under House Resolution 1146 of the
15        98th General Assembly and paragraph (4) of subsection
16        (d) of this Section 1-75 of this Act, as well as
17        publicly available analyses and studies performed by
18        or for regional transmission organizations that serve
19        the State and their independent market monitors.
20            Upon publishing of the zero emission standard
21        procurement plan, copies of the plan shall be posted
22        and made publicly available on the Agency's website.
23        All interested parties shall have 10 days following the
24        date of posting to provide comment to the Agency on the
25        plan. All comments shall be posted to the Agency's
26        website. Following the end of the comment period, but

 

 

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1        no more than 60 days later than June 1, 2017 (the
2        effective date of Public Act 99-906), the Agency shall
3        revise the plan as necessary based on the comments
4        received and file its zero emission standard
5        procurement plan with the Commission.
6            If the Commission determines that the plan will
7        result in the procurement of cost-effective zero
8        emission credits, then the Commission shall, after
9        notice and hearing, but no later than 45 days after the
10        Agency filed the plan, approve the plan or approve with
11        modification. For purposes of this subsection (d-5),
12        "cost effective" means the projected costs of
13        procuring zero emission credits from zero emission
14        facilities do not cause the limit stated in paragraph
15        (2) of this subsection to be exceeded.
16            (C-5) As part of the Commission's review and
17        acceptance or rejection of the procurement results,
18        the Commission shall, in its public notice of
19        successful bidders:
20                (i) identify how the winning bids satisfy the
21            public interest criteria described in subparagraph
22            (C) of this paragraph (1) of minimizing carbon
23            dioxide emissions that result from electricity
24            consumed in Illinois and minimizing sulfur
25            dioxide, nitrogen oxide, and particulate matter
26            emissions that adversely affect the citizens of

 

 

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1            this State;
2                (ii) specifically address how the selection of
3            winning bids takes into account the incremental
4            environmental benefits resulting from the
5            procurement, including any existing environmental
6            benefits that are preserved by the procurements
7            held under Public Act 99-906 and would have ceased
8            to exist if the procurements had not been held,
9            such as the preservation of zero emission
10            facilities;
11                (iii) quantify the environmental benefit of
12            preserving the resources identified in item (ii)
13            of this subparagraph (C-5), including the
14            following:
15                    (aa) the value of avoided greenhouse gas
16                emissions measured as the product of the zero
17                emission facilities' output over the contract
18                term multiplied by the U.S. Environmental
19                Protection Agency eGrid subregion carbon
20                dioxide emission rate and the U.S. Interagency
21                Working Group on Social Cost of Carbon's price
22                in the August 2016 Technical Update using a 3%
23                discount rate, adjusted for inflation for each
24                delivery year; and
25                    (bb) the costs of replacement with other
26                zero carbon dioxide resources, including wind

 

 

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1                and photovoltaic, based upon the simple
2                average of the following:
3                        (I) the price, or if there is more than
4                    one price, the average of the prices, paid
5                    for renewable energy credits from new
6                    utility-scale wind projects in the
7                    procurement events specified in item (i)
8                    of subparagraph (G) of paragraph (1) of
9                    subsection (c) of this Section 1-75 of this
10                    Act; and
11                        (II) the price, or if there is more
12                    than one price, the average of the prices,
13                    paid for renewable energy credits from new
14                    utility-scale solar projects and
15                    brownfield site photovoltaic projects in
16                    the procurement events specified in item
17                    (ii) of subparagraph (G) of paragraph (1)
18                    of subsection (c) of this Section 1-75 of
19                    this Act and, after January 1, 2015,
20                    renewable energy credits from photovoltaic
21                    distributed generation projects in
22                    procurement events held under subsection
23                    (c) of this Section 1-75 of this Act.
24            Each utility shall enter into binding contractual
25        arrangements with the winning suppliers.
26            The procurement described in this subsection

 

 

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1        (d-5), including, but not limited to, the execution of
2        all contracts procured, shall be completed no later
3        than May 10, 2017. Based on the effective date of
4        Public Act 99-906, the Agency and Commission may, as
5        appropriate, modify the various dates and timelines
6        under this subparagraph and subparagraphs (C) and (D)
7        of this paragraph (1). The procurement and plan
8        approval processes required by this subsection (d-5)
9        shall be conducted in conjunction with the procurement
10        and plan approval processes required by subsection (c)
11        of this Section and Section 16-111.5 of the Public
12        Utilities Act, to the extent practicable.
13        Notwithstanding whether a procurement event is
14        conducted under Section 16-111.5 of the Public
15        Utilities Act, the Agency shall immediately initiate a
16        procurement process on June 1, 2017 (the effective date
17        of Public Act 99-906).
18            (D) Following the procurement event described in
19        this paragraph (1) and consistent with subparagraph
20        (B) of this paragraph (1), the Agency shall calculate
21        the payments to be made under each contract for the
22        next delivery year based on the market price index for
23        that delivery year. The Agency shall publish the
24        payment calculations no later than May 25, 2017 and
25        every May 25 thereafter.
26            (E) Notwithstanding the requirements of this

 

 

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1        subsection (d-5), the contracts executed under this
2        subsection (d-5) shall provide that the zero emission
3        facility may, as applicable, suspend or terminate
4        performance under the contracts in the following
5        instances:
6                (i) A zero emission facility shall be excused
7            from its performance under the contract for any
8            cause beyond the control of the resource,
9            including, but not restricted to, acts of God,
10            flood, drought, earthquake, storm, fire,
11            lightning, epidemic, war, riot, civil disturbance
12            or disobedience, labor dispute, labor or material
13            shortage, sabotage, acts of public enemy,
14            explosions, orders, regulations or restrictions
15            imposed by governmental, military, or lawfully
16            established civilian authorities, which, in any of
17            the foregoing cases, by exercise of commercially
18            reasonable efforts the zero emission facility
19            could not reasonably have been expected to avoid,
20            and which, by the exercise of commercially
21            reasonable efforts, it has been unable to
22            overcome. In such event, the zero emission
23            facility shall be excused from performance for the
24            duration of the event, including, but not limited
25            to, delivery of zero emission credits, and no
26            payment shall be due to the zero emission facility

 

 

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1            during the duration of the event.
2                (ii) A zero emission facility shall be
3            permitted to terminate the contract if legislation
4            is enacted into law by the General Assembly that
5            imposes or authorizes a new tax, special
6            assessment, or fee on the generation of
7            electricity, the ownership or leasehold of a
8            generating unit, or the privilege or occupation of
9            such generation, ownership, or leasehold of
10            generation units by a zero emission facility.
11            However, the provisions of this item (ii) do not
12            apply to any generally applicable tax, special
13            assessment or fee, or requirements imposed by
14            federal law.
15                (iii) A zero emission facility shall be
16            permitted to terminate the contract in the event
17            that the resource requires capital expenditures in
18            excess of $40,000,000 that were neither known nor
19            reasonably foreseeable at the time it executed the
20            contract and that a prudent owner or operator of
21            such resource would not undertake.
22                (iv) A zero emission facility shall be
23            permitted to terminate the contract in the event
24            the Nuclear Regulatory Commission terminates the
25            resource's license.
26            (F) If the zero emission facility elects to

 

 

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1        terminate a contract under this subparagraph (E) , of
2        this paragraph (1), then the Commission shall reopen
3        the docket in which the Commission approved the zero
4        emission standard procurement plan under subparagraph
5        (C) of this paragraph (1) and, after notice and
6        hearing, enter an order acknowledging the contract
7        termination election if such termination is consistent
8        with the provisions of this subsection (d-5).
9        (2) For purposes of this subsection (d-5), the amount
10    paid per kilowatthour means the total amount paid for
11    electric service expressed on a per kilowatthour basis. For
12    purposes of this subsection (d-5), the total amount paid
13    for electric service includes, without limitation, amounts
14    paid for supply, transmission, distribution, surcharges,
15    and add-on taxes.
16        Notwithstanding the requirements of this subsection
17    (d-5), the contracts executed under this subsection (d-5)
18    shall provide that the total of zero emission credits
19    procured under a procurement plan shall be subject to the
20    limitations of this paragraph (2). For each delivery year,
21    the contractual volume receiving payments in such year
22    shall be reduced for all retail customers based on the
23    amount necessary to limit the net increase that delivery
24    year to the costs of those credits included in the amounts
25    paid by eligible retail customers in connection with
26    electric service to no more than 1.65% of the amount paid

 

 

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1    per kilowatthour by eligible retail customers during the
2    year ending May 31, 2009. The result of this computation
3    shall apply to and reduce the procurement for all retail
4    customers, and all those customers shall pay the same
5    single, uniform cents per kilowatthour charge under
6    subsection (k) of Section 16-108 of the Public Utilities
7    Act. To arrive at a maximum dollar amount of zero emission
8    credits to be paid for the particular delivery year, the
9    resulting per kilowatthour amount shall be applied to the
10    actual amount of kilowatthours of electricity delivered by
11    the electric utility in the delivery year immediately prior
12    to the procurement, to all retail customers in its service
13    territory. Unpaid contractual volume for any delivery year
14    shall be paid in any subsequent delivery year in which such
15    payments can be made without exceeding the amount specified
16    in this paragraph (2). The calculations required by this
17    paragraph (2) shall be made only once for each procurement
18    plan year. Once the determination as to the amount of zero
19    emission credits to be paid is made based on the
20    calculations set forth in this paragraph (2), no subsequent
21    rate impact determinations shall be made and no adjustments
22    to those contract amounts shall be allowed. All costs
23    incurred under those contracts and in implementing this
24    subsection (d-5) shall be recovered by the electric utility
25    as provided in this Section.
26        No later than June 30, 2019, the Commission shall

 

 

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1    review the limitation on the amount of zero emission
2    credits procured under this subsection (d-5) and report to
3    the General Assembly its findings as to whether that
4    limitation unduly constrains the procurement of
5    cost-effective zero emission credits.
6        (3) Six years after the execution of a contract under
7    this subsection (d-5), the Agency shall determine whether
8    the actual zero emission credit payments received by the
9    supplier over the 6-year period exceed the Average ZEC
10    Payment. In addition, at the end of the term of a contract
11    executed under this subsection (d-5), or at the time, if
12    any, a zero emission facility's contract is terminated
13    under subparagraph (E) of paragraph (1) of this subsection
14    (d-5), then the Agency shall determine whether the actual
15    zero emission credit payments received by the supplier over
16    the term of the contract exceed the Average ZEC Payment,
17    after taking into account any amounts previously credited
18    back to the utility under this paragraph (3). If the Agency
19    determines that the actual zero emission credit payments
20    received by the supplier over the relevant period exceed
21    the Average ZEC Payment, then the supplier shall credit the
22    difference back to the utility. The amount of the credit
23    shall be remitted to the applicable electric utility no
24    later than 120 days after the Agency's determination, which
25    the utility shall reflect as a credit on its retail
26    customer bills as soon as practicable; however, the credit

 

 

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1    remitted to the utility shall not exceed the total amount
2    of payments received by the facility under its contract.
3        For purposes of this Section, the Average ZEC Payment
4    shall be calculated by multiplying the quantity of zero
5    emission credits delivered under the contract times the
6    average contract price. The average contract price shall be
7    determined by subtracting the amount calculated under
8    subparagraph (B) of this paragraph (3) from the amount
9    calculated under subparagraph (A) of this paragraph (3), as
10    follows:
11            (A) The average of the Social Cost of Carbon, as
12        defined in subparagraph (B) of paragraph (1) of this
13        subsection (d-5), during the term of the contract.
14            (B) The average of the market price indices, as
15        defined in subparagraph (B) of paragraph (1) of this
16        subsection (d-5), during the term of the contract,
17        minus the baseline market price index, as defined in
18        subparagraph (B) of paragraph (1) of this subsection
19        (d-5).
20        If the subtraction yields a negative number, then the
21    Average ZEC Payment shall be zero.
22        (4) Cost-effective zero emission credits procured from
23    zero emission facilities shall satisfy the applicable
24    definitions set forth in Section 1-10 of this Act.
25        (5) The electric utility shall retire all zero emission
26    credits used to comply with the requirements of this

 

 

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1    subsection (d-5).
2        (6) Electric utilities shall be entitled to recover all
3    of the costs associated with the procurement of zero
4    emission credits through an automatic adjustment clause
5    tariff in accordance with subsection (k) and (m) of Section
6    16-108 of the Public Utilities Act, and the contracts
7    executed under this subsection (d-5) shall provide that the
8    utilities' payment obligations under such contracts shall
9    be reduced if an adjustment is required under subsection
10    (m) of Section 16-108 of the Public Utilities Act.
11        (7) This subsection (d-5) shall become inoperative on
12    January 1, 2028.
13    (e) The draft procurement plans are subject to public
14comment, as required by Section 16-111.5 of the Public
15Utilities Act.
16    (f) The Agency shall submit the final procurement plan to
17the Commission. The Agency shall revise a procurement plan if
18the Commission determines that it does not meet the standards
19set forth in Section 16-111.5 of the Public Utilities Act.
20    (g) The Agency shall assess fees to each affected utility
21to recover the costs incurred in preparation of the annual
22procurement plan for the utility.
23    (h) The Agency shall assess fees to each bidder to recover
24the costs incurred in connection with a competitive procurement
25process.
26    (i) A renewable energy credit, carbon emission credit, or

 

 

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1zero emission credit can only be used once to comply with a
2single portfolio or other standard as set forth in subsection
3(c), subsection (d), or subsection (d-5) of this Section,
4respectively. A renewable energy credit, carbon emission
5credit, or zero emission credit cannot be used to satisfy the
6requirements of more than one standard. If more than one type
7of credit is issued for the same megawatt hour of energy, only
8one credit can be used to satisfy the requirements of a single
9standard. After such use, the credit must be retired together
10with any other credits issued for the same megawatt hour of
11energy.
12(Source: P.A. 99-536, eff. 7-8-16; 99-906, eff. 6-1-17;
13100-863, eff. 8-14-18; revised 10-18-18.)
 
14    Section 5-20. The Public Utilities Act is amended by
15changing Sections 16-107.5, 16-107.6, 16-108, and 16-111.5 and
16by adding Section 16-107.7 as follows:
 
17    (220 ILCS 5/16-107.5)
18    Sec. 16-107.5. Net electricity metering.
19    (a) The Legislature finds and declares that a program to
20provide net electricity metering, as defined in this Section,
21for eligible customers can encourage private investment in
22renewable energy resources, stimulate economic growth, enhance
23the continued diversification of Illinois' energy resource
24mix, and protect the Illinois environment. Further, to achieve

 

 

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1the goal of this Act that robust options for customer-site
2distributed generation continue to thrive in Illinois, the
3General Assembly finds that a smooth, predictable transition
4must be ensured for customers between full net metering at the
5retail electricity rate to the distribution generation rebate
6described in Section 16-107.6.
7