Sen. Michael E. Hastings

Filed: 8/30/2021

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3666

2    AMENDMENT NO. ______. Amend House Bill 3666 by replacing
3everything after the enacting clause with the following:
 
4
"Article 5. Energy Transition

 
5    Section 5-1. Short title. This Article may be cited as the
6Energy Transition Act. As used in this Article, "this Act"
7refers to this Article.
 
8    Section 5-5. Definitions. As used in this Act:
9    "Apprentice" means a participant in an apprenticeship
10program approved by and registered with the United States
11Department of Labor's Bureau of Apprenticeship and Training.
12    "Apprenticeship program" means an apprenticeship and
13training program approved by and registered with the United
14States Department of Labor's Bureau of Apprenticeship and
15Training.

 

 

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1    "Black, indigenous, and people of color" or "BIPOC" means
2people who are members of the groups described in
3subparagraphs (a) through (e) of paragraph (A) of subsection
4(1) of Section 2 of the Business Enterprise for Minorities,
5Women, and Persons with Disabilities Act.
6    "Community-based organizations" means an organization
7that: (1) provides employment, skill development, or related
8services to members of the community; (2) includes community
9colleges, nonprofits, and local governments; (3) has at least
10one main operating office in the community or region it
11serves; and (4) demonstrates relationships with local
12residents and other organizations serving the community.
13    "Department" means the Department of Commerce and Economic
14Opportunity, unless the text solely specifies a particular
15Department.
16    "Director" means the Director of Commerce and Economic
17Opportunity.
18    "Equity eligible contractor" or "eligible contractor"
19means:
20        (1) a business that is majority-owned by equity
21    investment eligible individuals or persons who are or have
22    been participants in the Clean Jobs Workforce Network
23    Program, Clean Energy Contractor Incubator Program,
24    Returning Residents Clean Jobs Training Program, Illinois
25    Climate Works Preapprenticeship Program, or Clean Energy
26    Primes Contractor Accelerator Program;

 

 

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1        (2) a nonprofit or cooperative that is
2    majority-governed by equity investment eligible
3    individuals or persons who are or have been participants
4    in the Clean Jobs Workforce Network Program, Clean Energy
5    Contractor Incubator Program, Returning Residents Clean
6    Jobs Training Program, Illinois Climate Works
7    Preapprenticeship Program, or Clean Energy Primes
8    Contractor Accelerator Program; or
9        (3) an equity investment eligible person or an
10    individual who is or has been a participant in the Clean
11    Jobs Workforce Network Program, Clean Energy Contractor
12    Incubator Program, Returning Residents Clean Jobs Training
13    Program, Illinois Climate Works Preapprenticeship Program,
14    or Clean Energy Primes Contractor Accelerator Program and
15    who is offering personal services as an independent
16    contractor.
17    "Equity focused populations" means (i) low-income persons;
18(ii) persons residing in equity investment eligible
19communities; (iii) persons who identify as black, indigenous,
20and people of color; (iv) formerly convicted persons; (v)
21persons who are or were in the child welfare system; (vi)
22energy workers; (vii) dependents of displaced energy workers;
23(viii) women; (ix) LGBTQ+, transgender, or gender
24nonconforming persons; (x) persons with disabilities; and (xi)
25members of any of these groups who are also youth.
26    "Equity investment eligible community" and "eligible

 

 

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1community" are synonymous and mean the geographic areas
2throughout Illinois which would most benefit from equitable
3investments by the State designed to combat discrimination and
4foster sustainable economic growth. Specifically, the eligible
5communities means the following areas:
6        (1) R3 Areas as established pursuant to Section 10-40
7    of the Cannabis Regulation and Tax Act, where residents
8    have historically been excluded from economic
9    opportunities, including opportunities in the energy
10    sector; and
11        (2) Environmental justice communities, as defined by
12    the Illinois Power Agency pursuant to the Illinois Power
13    Agency Act, but excluding racial and ethnic indicators,
14    where residents have historically been subject to
15    disproportionate burdens of pollution, including pollution
16    from the energy sector.
17    "Equity investment eligible person" and "eligible person"
18are synonymous and mean the persons who would most benefit
19from equitable investments by the State designed to combat
20discrimination and foster sustainable economic growth.
21Specifically, eligible persons means the following people:
22        (1) persons whose primary residence is in an equity
23    investment eligible community;
24        (2) persons who are graduates of or currently enrolled
25    in the foster care system; or
26        (3) persons who were formerly incarcerated.

 

 

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1    "Climate Works Hub" means a nonprofit organization
2selected by the Department to act as a workforce intermediary
3and to participate in the Illinois Climate Works
4Preapprenticeship Program. To qualify as a Climate Works Hub,
5the organization must demonstrate the following:
6        (1) the ability to effectively serve diverse and
7    underrepresented populations, including by providing
8    employment services to such populations;
9        (2) experience with the construction and building
10    trades;
11        (3) the ability to recruit, prescreen, and provide
12    preapprenticeship training to prepare workers for
13    employment in the construction and building trades; and
14        (4) a plan to provide the following:
15            (A) preparatory classes;
16            (B) workplace readiness skills, such as resume
17        preparation and interviewing techniques;
18            (C) strategies for overcoming barriers to entry
19        and completion of an apprenticeship program; and
20            (D) any prerequisites for acceptance into an
21        apprenticeship program.
 
22    Section 5-10. Findings. The General Assembly finds that
23the clean energy sector is a growing area of the economy in the
24State of Illinois. The General Assembly further finds that
25State investment in the clean energy economy in Illinois can

 

 

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1be a vehicle for expanding equitable access to public health,
2safety, a cleaner environment, quality jobs, and economic
3opportunity.
4    It is in the public policy interest of the State to ensure
5that Illinois residents from communities disproportionately
6impacted by climate change, communities facing coal plant or
7coal mine closures, and economically disadvantaged communities
8and individuals experiencing barriers to employment have
9access to State programs and good jobs and career
10opportunities in growing sectors of the State economy. To
11promote those interests in the growing clean energy sector,
12the General Assembly hereby creates this Act to increase
13access to and opportunities for education, training, and
14support services these individuals need to succeed in the
15labor market generally and the clean energy sector
16specifically. The General Assembly further finds that the
17programs included in this Act are essential to equitable,
18statewide access to quality training, jobs, and economic
19opportunities across the clean energy sector.
 
20    Section 5-15. Regional Administrators.
21    (a) Subject to appropriation, the Department shall select
223 unique Regional Administrators: one Regional Administrator
23for coordination of the work in the Northern Illinois Program
24Delivery Area, one Regional Administrator for coordination of
25the work in the Central Illinois Program Delivery Area, and

 

 

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1one Regional Administrator for coordination of the work in the
2Southern Illinois Program Delivery Area.
3    (b) The Regional Administrators shall have strong
4capabilities, experience, and knowledge related to program
5development and fiscal management; cultural and language
6competency needed to be effective in their respective
7communities to be served; expertise in working in and with
8BIPOC and environmental justice communities; knowledge and
9experience in working with employer or sectoral partnerships,
10if applicable, in clean energy or related sectors; and
11awareness of industry trends and activities, workforce
12development best practices, regional workforce development
13needs, regional and industry employers, and community
14development. The Regional Administrators shall demonstrate a
15track record of strong partnerships with community-based
16organizations and labor organizations.
17    (c) The Regional Administrators shall work together to
18administer the implementation of the Clean Jobs Workforce
19Network Program, the Illinois Climate Works Preapprenticeship
20Program, the Clean Energy Contractor Incubator Program, and
21the Returning Resident Clean Jobs Training Program.
 
22    Section 5-20. Clean Jobs Workforce Network Program.
23    (a) As used in this Section, "Program" means the Clean
24Jobs Workforce Network Program.
25    (b) Subject to appropriation, the Department shall develop

 

 

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1and, through Regional Administrators, administer the Clean
2Jobs Workforce Network Program to create a network of 13
3Program delivery Hub Sites with program elements delivered by
4community-based organizations and their subcontractors
5geographically distributed across the State including at least
6one Hub Site located in or near each of the following areas:
7Chicago (South Side), Chicago (Southwest and West Sides),
8Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign,
9Danville, Decatur, Carbondale, East St. Louis, and Alton.
10    (c) The Program shall be available to members of one or
11more of the populations eligible under subsection (d) to enter
12and complete the career pipeline leading to an
13industry-recognized certification or credential, or
14postsecondary credential for clean energy or related sector
15jobs, with the goal of serving all of the equity focused
16populations distributed across the network.
17    (d) The Program shall be available to members of one or
18more of the population groups listed as equity focused
19populations from communities in the following order of
20priority:
21        (i) Communities that host coal-fired power plants or
22    coal mines.
23        (ii) Communities across the State.
24    (e) In admitting program participants, for each workforce
25Hub Site, the Regional Administrators shall:
26        (1) in each Hub Site where the applicant pool allows:

 

 

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1            (A) dedicate at least one-third of program
2        placements to applicants who reside in a geographic
3        area that is impacted by economic and environmental
4        challenges, defined as an area that is both (i) an R3
5        Area, as defined pursuant to Section 10-40 of the
6        Cannabis Regulation and Tax Act, and (ii) an
7        environmental justice community, as defined by the
8        Illinois Power Agency, excluding any racial or ethnic
9        indicators used by the agency unless and until the
10        constitutional basis for their inclusion in
11        determining program admissions is established. Among
12        applicants that satisfy these criteria, preference
13        shall be given to applicants who face barriers to
14        employment, such as low educational attainment, prior
15        involvement with the criminal legal system, and
16        language barriers; and applicants that are graduates
17        of or currently enrolled in the foster care system;
18        and
19            (B) dedicate at least two-thirds of program
20        placements to applicants that satisfy the criteria in
21        paragraph (1) or who reside in a geographic area that
22        is impacted by economic or environmental challenges,
23        defined as an area that is either (i) an R3 Area, as
24        defined pursuant to Section 10-40 of the Cannabis
25        Regulation and Tax Act, or (ii) an environmental
26        justice community, as defined by the Illinois Power

 

 

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1        Agency, excluding any racial or ethnic indicators used
2        by the agency unless and until the constitutional
3        basis for their inclusion in determining program
4        admissions is established. Among applicants that
5        satisfy these criteria, preference shall be given to
6        applicants who face barriers to employment, such as
7        low educational attainment, prior involvement with the
8        criminal legal system, and language barriers; and
9        applicants that are graduates of or currently enrolled
10        in the foster care system; and
11        (2) prioritize the remaining program placements for:
12    applicants who are displaced energy workers as defined in
13    the Energy Community Reinvestment Act; persons who face
14    barriers to employment, including low educational
15    attainment, prior involvement with the criminal legal
16    system, and language barriers; and applicants who are
17    graduates of or currently enrolled in the foster care
18    system, regardless of the applicant's area of residence.
19    The Department and Regional Administrators shall protect
20the confidentiality of any personal information provided by
21program applicants regarding the applicant's status as a
22formerly incarcerated person or foster care recipient;
23however, the Department or Regional Administrators may publish
24aggregated data on the number of participants that were
25formerly incarcerated or foster care recipients so long as
26that publication protects the identities of those persons.

 

 

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1    Any person who applies to the program may elect not to
2share with the Department or Regional Administrators whether
3he or she is a graduate or currently enrolled in the foster
4care system or was formerly convicted.
5    (f) Program elements for each Hub Site shall be provided
6by a community-based organization. The Department shall
7initially select a community-based organization in each Hub
8Site and shall subsequently select a community-based
9organization in each Hub Site every 3 years. Community-based
10organizations delivering program elements outlined in
11subsection (g) may provide all elements required or may
12subcontract to other entities for provision of portions of
13program elements, including, but not limited to,
14administrative soft and hard skills for program participants,
15delivery of specific training in the core curriculum, or
16provision of other support functions for program delivery
17compliance.
18    (g) The Clean Jobs Workforce Hubs Network shall:
19        (1) coordinate with Energy Transition Navigators: (i)
20    to increase participation in the Clean Jobs Workforce
21    Network Program and clean energy and related sector
22    workforce and training opportunities; (ii) coordinate
23    recruitment, communications, and ongoing engagement with
24    potential employers, including, but not limited to,
25    activities such as job matchmaking initiatives, hosting
26    events such as job fairs, and collaborating with other Hub

 

 

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1    Sites to identify and implement best practices for
2    employer engagement; and (iii) leverage community-based
3    organizations, educational institutions, and
4    community-based and labor-based training providers to
5    ensure members of equity focused populations across the
6    State have dedicated and sustained support to enter and
7    complete the career pipeline for clean energy and related
8    sector jobs;
9        (2) develop formal partnerships, including formal
10    sector partnerships between community-based organizations
11    and entities that provide clean energy jobs, including
12    businesses, nonprofit organizations, and worker-owned
13    cooperatives, to ensure that Program participants have
14    priority access to employment training and hiring
15    opportunities; and
16        (3) implement the Clean Jobs Curriculum to provide,
17    including, but not limited to, training, certification
18    preparation, job readiness, and skill development,
19    including soft skills, math skills, technical skills,
20    certification test preparation, and other development
21    needed, to Program participants.
22    (h) Funding for the Program is subject to appropriation
23from the Energy Transition Assistance Fund.
24    (i) The Department shall require submission of quarterly
25reports, including program performance metrics by each Hub
26Site to the Regional Administrator of their Program Delivery

 

 

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1Area. Program performance metric include, but are not limited
2to:
3        (1) demographic data, including racial, gender,
4    residency in eligible communities, and geographic
5    distribution data, on Program trainees entering and
6    graduating the Program;
7        (2) demographic data, including racial, gender,
8    residency in eligible communities, and geographic
9    distribution data, on Program trainees who are placed in
10    employment, including the percentages of trainees by race,
11    gender, and geographic categories in each individual job
12    type or category and whether employment is union,
13    nonunion, or nonunion via temporary agency;
14        (3) trainee job acquisition and retention statistics,
15    including the duration of employment (start and end dates
16    of hires) by race, gender, and geography;
17        (4) hourly wages, including hourly overtime pay rate,
18    and benefits of trainees placed into employment by race,
19    gender, and geography;
20        (5) percentage of jobs by race, gender, and geography
21    held by Program trainees or graduates that are full-time
22    equivalent positions, meaning that the position held is
23    full-time, direct, and permanent based on 2,080 hours
24    worked per year (paid directly by the employer, whose
25    activities, schedule, and manner of work the employer
26    controls, and receives pay and benefits in the same manner

 

 

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1    as permanent employees); and
2        (6) qualitative data consisting of open-ended
3    reporting on pertinent issues, including, but not limited
4    to, qualitative descriptions accompanying metrics or
5    identifying key successes and challenges.
6    (j) Within 3 years after the effective date of this Act,
7the Department shall select an independent evaluator to review
8and prepare a report on the performance of the Program and
9Regional Administrators.
 
10    Section 5-25. Clean Jobs Curriculum.
11    (a) As used in this Section, "clean energy jobs", subject
12to administrative rules, means jobs in the solar energy, wind
13energy, energy efficiency, energy storage, solar thermal,
14green hydrogen, geothermal, electric vehicle industries, other
15renewable energy industries, industries achieving emission
16reductions, and other related sectors including related
17industries that manufacture, develop, build, maintain, or
18provide ancillary services to renewable energy resources or
19energy efficiency products or services, including the
20manufacture and installation of healthier building materials
21that contain fewer hazardous chemicals. "Clean energy jobs"
22includes administrative, sales, other support functions within
23these industries and other related sector industries.
24    (b) The Department shall convene a comprehensive
25stakeholder process that includes representatives from the

 

 

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1State Board of Education, the Illinois Community College
2Board, the Department of Labor, community-based organizations,
3workforce development providers, labor unions, building
4trades, educational institutions, residents of BIPOC and
5low-income communities, residents of environmental justice
6communities, clean energy businesses, nonprofit organizations,
7worker-owned cooperatives, other groups that provide clean
8energy jobs opportunities, groups that provide construction
9and building trades job opportunities, and other participants
10to identify the career pathways and training curriculum needed
11for participants to be skilled, work ready, and able to enter
12clean energy jobs. The curriculum shall:
13        (1) identify the core training curricular competency
14    areas needed to prepare workers to enter clean energy and
15    related sector jobs;
16        (2) identify a set of required core cross-training
17    competencies provided in each training area for clean
18    energy jobs with the goal of enabling any trainee to
19    receive a standard set of skills common to multiple
20    training areas that would provide a foundation for
21    pursuing a career composed of multiple clean energy job
22    types;
23        (3) include approaches to integrate broad occupational
24    training to provide career entry into the general
25    construction and building trades sector and any remedial
26    education and work readiness support necessary to achieve

 

 

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1    educational and professional eligibility thresholds; and
2        (4) identify on-the-job training formats, where
3    relevant, and identify suggested trainer certification
4    standards, where relevant.
5    (c) The Department shall publish a report that includes
6the findings, recommendations, and core curriculum identified
7by the stakeholder group and shall post a copy of the report on
8its public website. The Department shall convene the process
9described to update and modify the recommended curriculum
10every 3 years to ensure the curriculum contents are current to
11the evolving clean energy industries, practices, and
12technologies.
13    (d) Organizations that receive funding to provide training
14under the Clean Jobs Workforce Network Program, including, but
15not limited to, community-based and labor-based training
16providers, and educational institutions must use the core
17curriculum that is developed under this Section.
 
18    Section 5-30. Energy Transition Barrier Reduction Program.
19    (a) As used in this Section, "Program" means the Energy
20Transition Barrier Reduction Program.
21    (b) Subject to appropriation, the Department shall create
22and administer an Energy Transition Barrier Reduction Program.
23The Program shall be used to provide supportive services for
24individuals impacted by the energy transition. Services
25allowed are intended to help program-eligible individuals

 

 

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1overcome financial and other barriers to participation in the
2Clean Jobs Workforce Network Program and the Illinois Climate
3Works Preapprenticeship Program.
4    (c) The Program shall be available to program-eligible
5individuals from communities in the following order of
6priority:
7        (1) communities that host coal-fired power plants or
8    coal mines;
9        (2) communities across the State.
10    (d) The Department shall determine appropriate allowable
11program costs, elements, and financial supports to reduce
12barriers to successful participation in the Clean Jobs
13Workforce Program and the Illinois Climate Works
14Preapprenticeship Program for equity focused populations.
15    (e) Community-based organizations and other nonprofits
16selected by the Department shall provide supportive services
17described in this Section to equity focused populations
18participating in the Clean Jobs Workforce Network Program and
19Illinois Climate Works Preapprenticeship Program.
20    (f) The community-based organizations that provide support
21services under this Section shall coordinate with the Energy
22Transition Navigators to ensure equity focused populations
23have access to these services.
24    (g) Funding for the Program is subject to appropriation
25from the Energy Transition Assistance Fund.
 

 

 

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1    Section 5-35. Energy Transition Navigators.
2    (a) As used in this Section:
3    "Community-based provider" means a not-for-profit
4organization that has a history of serving low-wage or
5low-skilled workers or individuals from economically
6disadvantaged communities.
7    "Economically disadvantaged community" means areas of one
8or more census tracts where the average household income does
9not exceed 80% of the area median income.
10    (b) In order to engage equity focused populations to
11participate in the Clean Jobs Workforce Network Program and
12the Illinois Climate Works Preapprenticeship Program and
13utilize the services offered under the Energy Transition
14Barrier Reduction Program, the Department shall, subject to
15appropriation, contract with community-based providers to
16serve as Energy Transition Navigators. Energy Transition
17Navigators shall provide education, outreach, and recruitment
18services to equity focused populations, prioritizing
19Program-eligible individuals, to make sure they are aware of
20and engaged in the statewide and local workforce development
21systems. Additional strategies may include, but are not
22limited to, recruitment activities and events.
23    (c) For members of equity focused populations,
24prioritizing Program-eligible individuals, who may be
25interested in entrepreneurial pursuits, Energy Transition
26Navigators may connect these individuals with their area Small

 

 

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1Business Development Center, Procurement Technical Assistance
2Centers, or economic development organization to engage in
3services, including, but not limited to, business consulting,
4business planning, regulatory compliance, marketing, training,
5accessing capital, government bid, and certification
6assistance.
7    (d) Energy Transition Navigators shall engage equity
8focused populations, prioritizing Program-eligible
9individuals, organizations working with these populations,
10local workforce innovation boards, and other relevant
11stakeholders to coordinate outreach initiatives to promote
12information regarding programs and services offered under the
13Clean Jobs Workforce Network Program, the Illinois Climate
14Works Preapprenticeship Program, and the Energy Transition
15Barrier Reduction Program. Energy Transition Navigators shall
16provide support where reasonable to individuals and entities
17applying for these services and programs.
18    (e) Community education, outreach, and recruitment
19regarding the Clean Jobs Workforce Network Program, the
20Illinois Climate Works Preapprenticeship Program, and Energy
21Transition Barrier Reduction Program shall be targeted to the
22equity focused populations, prioritizing Program-eligible
23individuals.
24    (f) Community-based providers shall partner with
25educational institutions or organizations working with equity
26focused populations, local employers, labor unions, and others

 

 

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1to identify members of equity focused populations in eligible
2communities who are unable to advance in their careers due to
3inadequate skills. Community-based providers shall provide
4information and consultation to equity focused populations,
5prioritizing Program-eligible individuals, on various
6educational opportunities and supportive services available to
7them.
8    (g) Community-based providers shall establish partnerships
9with employers, educational institutions, local economic
10development organizations, environmental justice
11organizations, trades groups, labor unions, and entities that
12provide jobs, including businesses and other nonprofit
13organizations, to target the skill needs of local industry.
14The community-based provider shall work with local workforce
15innovation boards and other relevant partners to develop skill
16curriculum and career pathway support for disadvantaged
17individuals in equity focused populations, prioritizing
18Program-eligible individuals, that meets local employers'
19needs and establishes job placement opportunities after
20training.
21    (h) Funding for the Program is subject to appropriation
22from the Energy Transition Assistance Fund. Priority in
23awarding grants under this Section will be given to
24organizations that also have experience serving populations
25impacted by climate change.
26    (i) Each community-based organization that receives

 

 

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1funding from the Department as an Energy Transition Navigator
2shall provide an annual report to the Department by April 1 of
3each calendar year. The annual report shall include the
4following information:
5        (1) a description of the community-based
6    organization's recruitment, screening, and training
7    efforts;
8        (2) the number of individuals who apply to,
9    participate in, and complete programs offered through the
10    Energy Transition Workforce Program, broken down by race,
11    gender, age, and location; and
12        (3) any other information deemed necessary by the
13    Department.
 
14    Section 5-40. Illinois Climate Works Preapprenticeship
15Program.
16    (a) Subject to appropriation, the Department shall
17develop, and through Regional Administrators administer, the
18Illinois Climate Works Preapprenticeship Program. The goal of
19the Illinois Climate Works Preapprenticeship Program is to
20create a network of hubs throughout the State that will
21recruit, prescreen, and provide preapprenticeship skills
22training, for which participants may attend free of charge and
23receive a stipend, to create a qualified, diverse pipeline of
24workers who are prepared for careers in the construction and
25building trades and clean energy jobs opportunities therein.

 

 

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1Upon completion of the Illinois Climate Works
2Preapprenticeship Program, the candidates will be connected to
3and prepared to successfully complete an apprenticeship
4program.
5    (b) Each Climate Works Hub that receives funding from the
6Energy Transition Assistance Fund shall provide an annual
7report to the Illinois Works Review Panel by April 1 of each
8calendar year. The annual report shall include the following
9information:
10        (1) a description of the Climate Works Hub's
11    recruitment, screening, and training efforts, including a
12    description of training related to construction and
13    building trades opportunities in clean energy jobs;
14        (2) the number of individuals who apply to,
15    participate in, and complete the Climate Works Hub's
16    program, broken down by race, gender, age, and veteran
17    status;
18        (3) the number of the individuals referenced in
19    paragraph (2) of this subsection who are initially
20    accepted and placed into apprenticeship programs in the
21    construction and building trades; and
22        (4) the number of individuals referenced in paragraph
23    (2) of this subsection who remain in apprenticeship
24    programs in the construction and building trades or have
25    become journeymen one calendar year after their placement,
26    as referenced in paragraph (3) of this subsection.

 

 

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1    (c) Subject to appropriation, the Department shall provide
2funding to 3 Climate Works Hubs throughout the State,
3including one to the Illinois Department of Transportation
4Region 1, one to the Illinois Department of Transportation
5Regions 2 and 3, and one to the Illinois Department of
6Transportation Regions 4 and 5. The Department shall initially
7select a community-based provider in each region and shall
8subsequently select a community-based provider in each region
9every 3 years.
10    (d) The Climate Works Hubs shall recruit, prescreen, and
11provide preapprenticeship training to equity investment
12eligible persons. This training shall include information
13related to opportunities and certifications relevant to clean
14energy jobs in the construction and building trades.
15    (e) Training provided by the Climate Works Hubs shall be
16available to members of equity focused populations from
17communities in the following order of priority: (i)
18communities that host coal-fired power plants or coal mines,
19or both; and (ii) communities across the State.
20    (f) Funding for the Program is subject to appropriation
21from the Energy Transition Assistance Fund.
22    (g) The Department shall adopt any rules deemed necessary
23to implement this Section.
 
24    Section 5-45. Clean Energy Contractor Incubator Program.
25    (a) As used in this Section, "community-based

 

 

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1organization" means a nonprofit organization, including an
2accredited public college or university that:
3        (1) has a history of providing business-related
4    assistance and knowledge to help entrepreneurs start, run,
5    and grow their businesses;
6        (2) has knowledge of construction and clean energy
7    trades;
8        (3) demonstrates relationships with local residents
9    and other organizations serving the community; and
10        (4) demonstrates the ability to effectively serve
11    diverse and underrepresented populations.
12    (b) Subject to appropriation, the Department shall
13develop, and through the Regional Administrators, administer
14the Clean Energy Contractor Incubator Program ("Program") to
15create a network of 13 Program delivery Hub Sites with program
16elements delivered by community-based organizations and their
17subcontractors geographically distributed across the State,
18including at least one Hub Site located in or near each of the
19following areas: Chicago (South Side), Chicago (Southwest and
20West Sides), Waukegan, Rockford, Aurora, Joliet, Peoria,
21Champaign, Danville, Decatur, Carbondale, East St. Louis, and
22Alton.
23    (c) In admitting program participants, for each Contractor
24Incubator Hub Site the Regional Administrators shall:
25        (1) in each Hub Site where the applicant pool allows:
26            (A) dedicate at least one-third of program

 

 

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1        placements to the owners of clean energy contractor
2        businesses and nonprofits who reside in a geographic
3        area that is impacted by economic and environmental
4        challenges, defined as an area that is both (i) an R3
5        Area, as defined pursuant to Section 10-40 of the
6        Cannabis Regulation and Tax Act, and (ii) an
7        environmental justice community, as defined by the
8        Illinois Power Agency, excluding any racial or ethnic
9        indicators used by the agency unless and until the
10        constitutional basis for their inclusion in
11        determining program admissions is established. Among
12        applicants that satisfy these criteria, preference
13        shall be given to applicants who face barriers to
14        employment, such as low educational attainment, prior
15        involvement with the criminal legal system, and
16        language barriers; and applicants that are graduates
17        of or currently enrolled in the foster care system;
18        and
19            (B) dedicate at least two-thirds of program
20        placements to the owners of clean energy contractor
21        businesses and nonprofits that satisfy the criteria in
22        paragraph (1) or who reside in eligible communities.
23        Among applicants who live in eligible communities,
24        preference shall be given to applicants who face
25        barriers to employment, such as low educational
26        attainment, prior involvement with the criminal legal

 

 

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1        system, and language barriers; and applicants that are
2        graduates of or currently enrolled in the foster care
3        system; and
4        (2) prioritize the remaining program placements for:
5    applicants who are displaced energy workers as defined in
6    the Energy Community Reinvestment Act; persons who face
7    barriers to employment, including low educational
8    attainment, prior involvement with the criminal legal
9    system, and language barriers; and applicants who are
10    graduates of or currently enrolled in the foster care
11    system, regardless of the applicants' area of residence.
12    Consideration shall also be given to any current or past
13participant in the Clean Jobs Workforce Network Program,
14Illinois Climate Works Preapprenticeship Program, or Returning
15Residents Clean Energy Jobs Training Program.
16    The Department and Regional Administrators shall protect
17the confidentiality of any personal information provided by
18program applicants regarding the applicant's status as a
19formerly incarcerated person or foster care recipient;
20however, the Department or Regional Administrators may publish
21aggregated data on the number of participants that were
22formerly incarcerated or foster care recipients so long as
23that publication protects the identities of those persons.
24    Any person who applies to the program may elect not to
25share with the Department or Regional Administrators whether
26he or she is a graduate or currently enrolled in the foster

 

 

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1care system or was formerly convicted.
2    (d) Program elements at each Hub Site shall be provided by
3a local community-based organization. The Department shall
4initially select a community-based organization in each Hub
5Site and shall subsequently select a community-based
6organization in each Hub Site every 3 years. Community-based
7organizations delivering program elements outlined in
8subsection (e) may provide all elements required or may
9subcontract to other entities for provision of portions of
10program elements, including, but not limited to,
11administrative soft and hard skills for program participants,
12delivery of specific training in the core curriculum, or
13provision of other support functions for program delivery
14compliance.
15    (e) The Clean Energy Contractor Incubator Program shall:
16        (1) provide access to low-cost capital for small clean
17    energy businesses and contractors;
18        (2) provide support for obtaining financial assurance,
19    including, but not limited to: bonding; back office
20    services; insurance, permits, training and certifications;
21    business planning; and low-interest loans;
22        (3) train, mentor, and provide other support needed to
23    allow participant contractors to: (i) build their
24    businesses and connect to specific projects, (ii) register
25    as approved vendors, (iii) engage in approved vendor
26    subcontracting and qualified installer opportunities, (iv)

 

 

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1    develop partnering and networking skills, (v) compete for
2    capital and other resources, and (vi) execute clean
3    energy-related project installations and subcontracts;
4        (4) ensure that participant contractors, community
5    partners, and potential contractor clients are aware of
6    and engaged in the Program;
7        (5) provide prevailing wage compliance training and
8    back office support to implement prevailing wage
9    practices; and
10        (6) provide recruitment and ongoing engagement with
11    entities that hire contractors and subcontractors,
12    programs providing renewable energy resource-related
13    projects, incentive programs, and approved vendor and
14    qualified installer opportunities, including, but not
15    limited to, activities such as matchmaking, events, and
16    collaborating with other Hub Sites.
17    (f) Funding for the Program is subject to appropriation
18from the Energy Transition Assistance Fund.
19    (g) The Department shall require submission of quarterly
20reports including program performance metrics by each Hub Site
21to the Regional Administrator of their Program Delivery Area.
22Program performance metrics include, but are not limited to:
23        (1) demographic data including: race, gender,
24    geographic location, R3 residency, Environmental Justice
25    Community residency, foster care system participation, and
26    justice-involvement for the owners of contractors

 

 

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1    applying, accepted into, and graduating from the Program;
2        (2) the number of projects completed by participant
3    contractors, alone or in partnership, by race, gender,
4    geographic location, R3 residency, Environmental Justice
5    Community residency, foster care system participation, and
6    justice-involvement for the owners of contractors;
7        (3) the number of partnerships with participant
8    contractors that are expected to result in contracts for
9    work by the participant contractor, by race, gender,
10    geographic location, R3 residency, Environmental Justice
11    Community residency, foster care system participation, and
12    justice-involvement for the owners of contractors;
13        (4) changes in participant contractors' business
14    revenue, by race, gender, geographic location, R3
15    residency, Environmental Justice Community residency,
16    foster care system participation, and justice-involvement
17    for the owners of contractors;
18        (5) the number of new hires by participant
19    contractors, by race, gender, geographic location, R3
20    residency, Environmental Justice Community residency,
21    foster care system participation, and justice-involvement
22    for the owners of contractors;
23        (6) demographic data, including race, gender,
24    geographic location, R3 residency, Environmental Justice
25    Community residency, foster care system participation, and
26    justice-involvement, and average wage data, for new hires

 

 

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1    by participant contractors;
2        (7) certifications held by participant contractors,
3    and number of participants holding each certification,
4    including, but not limited to, registration under the
5    Business Enterprise for Minorities, Women, and Persons
6    with Disabilities Act program and other programs intended
7    to certify BIPOC entities;
8        (8) the number of Program sessions attended by
9    participant contractors, aggregated by race; and
10        (9) indicators relevant for assessing the general
11    financial health of participant contractors.
12    (h) Within 3 years after the effective date of this Act,
13the Department shall select an independent evaluator to review
14and prepare a report on the performance of the Program and
15Regional Administrators. The report shall be posted publicly.
 
16    Section 5-50. Returning Residents Clean Jobs Training
17Program.
18    (a) Subject to appropriation, the Department shall develop
19and, in coordination with the Department of Corrections,
20administer the Returning Residents Clean Jobs Training
21Program.
22    (b) As used in this Section:
23    "Commitment" means a judicially determined placement in
24the custody of the Department of Corrections on the basis of a
25conviction.

 

 

10200HB3666sam001- 31 -LRB102 13525 AMC 28481 a

1    "Committed person" means a person committed to the
2Department of Corrections.
3    "Community-based organization" means an organization that:
4        (1) provides employment, skill development, or related
5    services to members of the community;
6        (2) includes community colleges, nonprofits, and local
7    governments; and
8        (3) has a history of serving inmates or formerly
9    convicted persons.
10    "Correctional institution or facility" means a Department
11of Corrections building or part of a Department of Corrections
12building where committed persons are detained in a secure
13manner.
14    "Department" means the Department of Corrections.
15    "Discharge" means the end of a sentence or the final
16termination of a detainee's physical commitment to and
17confinement in the Department of Corrections.
18    "Program" means the Returning Residents Clean Jobs
19Training Program.
20    "Program Administrator" means, for each Program Delivery
21Area, the administrator selected by the Department pursuant to
22paragraph (1) of subsection (g) of this Section.
23    "Returning resident" means any United States resident who
24is: (i) 17 years of age or older; (ii) in the physical custody
25of the Department of Corrections; and (iii) scheduled to be
26re-entering society within 36 months.

 

 

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1    (c) Returning Residents Clean Jobs Training Program.
2        (1) Connected services. The Program shall prepare
3    graduates to work in the solar power and energy efficiency
4    industries.
5        (2) Recruitment of participants. The Program
6    Administrators shall, in coordination with the Department
7    of Corrections, educate committed persons in both men's
8    and women's correctional institutions and facilities on
9    the benefits of the Program and how to enroll in the
10    Program.
11        (3) Connection to employers. The Program
12    Administrators shall, with assistance from the Regional
13    Administrators, connect Program graduates with potential
14    employers in the solar power and energy efficiency and
15    related industries.
16        (4) Graduation. Participants who successfully complete
17    all assignments in the Program shall receive a Program
18    graduation certificate and any certifications earned in
19    the process.
20        (5) Eligibility. A committed person in a correctional
21    institution or facility is eligible if the committed
22    person:
23            (i) is within 36 months of expected release;
24            (ii) consented in writing to participation in the
25        Program;
26            (iii) meets all Program and testing requirements;

 

 

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1            (iv) is willing to follow all Program
2        requirements; and
3            (v) does not pose a safety and security risk for
4        the facility or any person.
5    The Department of Corrections shall have sole discretion
6to determine whether a committed person's participation in the
7Program poses a safety and security risk for the facility or
8any person. The Department of Corrections shall determine
9whether a committed person is eligible to participate in the
10Program.
11    (d) Program entry and testing requirements. To enter the
12Returning Residents Clean Jobs Training Program, committed
13persons must complete a simple application, undergo an
14interview and coaching session, and must score a minimum of a
156.0 or above on the Test for Adult Basic Education. The
16Returning Residents Clean Jobs Training Program shall include
17a one-week pre-program orientation that ensures the candidates
18understand and are interested in continuing the Program.
19Candidates that successfully complete the orientation may
20continue to the full Program.
21    (d-5) Once approved for the new program, candidates must
22receive essential employability skills training as part of
23vocational or occupational training. Training must lead to
24certifications or credentials that prepare candidates for
25employment.
26    (e) Removal from the Program. The Department of

 

 

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1Corrections may remove a committed person enrolled in the
2Program for violation of institutional rules; failure to
3participate or meet expectations of the Program; failure of a
4drug test; disruptive behavior; or for reasons of safety,
5security, and order of the facility.
6    (f) Drug testing. A clean drug test is required to
7complete the Returning Residents Clean Jobs Training Program.
8A drug test shall be administered at least once prior to
9graduation. The Department of Corrections shall be responsible
10for the drug testing of applicants.
11    (g) Curriculum.
12        (1) The Department of Commerce and Economic
13    Opportunity shall design a curriculum for the Program that
14    is as similar as practical to the Clean Jobs Curriculum
15    and meets in-facility requirements. The curriculum shall
16    focus on preparing graduates for employment in the solar
17    power and energy efficiency industries. The Program shall
18    include structured hands-on activities in correctional
19    institutions or facilities, including classroom spaces and
20    outdoor spaces, to instruct participants in the core
21    curriculum established in this Act. The Department shall
22    consult with the Department of Corrections to ensure all
23    curriculum elements may be available within Department of
24    Corrections facilities.
25        (2) The Program Administrators shall collaborate to
26    create and publish a guidebook that allows for the

 

 

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1    implementation of the curriculum and provides information
2    on all necessary and useful resources for Program
3    participants and graduates.
4    (h) Program administration.
5        (1) The Department of Commerce and Economic
6    Opportunity shall establish and hire a Program
7    Administrator for each Program Delivery Area to administer
8    and coordinate the Program. The Program Administrators
9    shall have strong capabilities, experience, and knowledge
10    related to program development and economic management;
11    cultural and language competency needed to be effective in
12    the communities to be served; expertise in working in and
13    with equity investment eligible communities; knowledge and
14    experience in working with providers of clean energy jobs;
15    and awareness of solar power and energy efficiency
16    industry trends and activities, workforce development best
17    practices, regional workforce development needs, and
18    community development. The Program Administrators shall
19    demonstrate a track record of strong partnerships with
20    community-based organizations.
21        The Program Administrator must pass a background check
22    administered by the Department of Corrections and be
23    approved by the Department of Corrections to work within a
24    secure facility prior to being hired by the Department of
25    Commerce and Economic Opportunity for a Program delivery
26    area.

 

 

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1        (2) The Program Administrators shall:
2            (i) coordinate with Regional Administrators and
3        the Clean Jobs Workforce Network Program to ensure
4        that execution, performance, partnerships, marketing,
5        and Program access across the State consistent with
6        respecting regional differences;
7            (ii) work with community-based organizations
8        approved to provide industry-recognized credentials or
9        education institutions to deliver the Program;
10            (iii) collaborate to create and publish an
11        employer "Hiring Returning Residents" handbook that
12        includes benefits and expectations of hiring returning
13        residents, guidance on how to recruit, hire, and
14        retain returning residents, guidance on how to access
15        State and federal tax credits and incentives and State
16        and federal resources, guidance on how to update
17        company policies to support hiring and supporting
18        returning residents, and an understanding of the harm
19        in one-size-fits-all policies toward returning
20        residents. The handbook shall be updated every 5 years
21        or more frequently if needed to ensure that its
22        contents are accurate. The handbook shall be made
23        available on the Department's website;
24            (iv) work with potential employers to promote
25        company policies to support hiring and supporting
26        returning residents via employee/employer liability,

 

 

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1        coverage, insurance, bonding, training, hiring
2        practices, and retention support;
3            (v) provide services such as job coaching and
4        financial coaching to Program graduates to support
5        employment longevity; and
6            (vi) identify clean energy job opportunities and
7        assist participants in achieving employment. The
8        Program shall include at least one job fair; include
9        job placement discussions with clean energy employers;
10        establish a partnership with Illinois solar energy
11        businesses and trade associations to identify solar
12        employers that support and hire returning residents;
13        and involve the Department of Commerce and Economic
14        Opportunity, Regional Administrators, and the Advisory
15        Council in finding employment for participants and
16        graduates in the clean energy and related sector
17        industries.
18        (3) The Department shall select community-based
19    organizations to provide Program elements at each
20    facility. Community-based organizations shall be
21    competitively selected by the Department of Commerce and
22    Economic Opportunity. Community-based organizations
23    delivering the Program elements outlined may provide all
24    elements required or may subcontract to other entities for
25    the provision of portions of Program elements. All
26    contractors who have regular interactions with committed

 

 

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1    persons, regularly access a Department of Corrections
2    facility, or regularly access a committed person's
3    personal identifying information or other data elements
4    must pass a Department of Corrections background check
5    prior to being approved to administer the Program elements
6    at a facility.
7        (4) The Department shall aim to include training in
8    conjunction with other pre-release procedures and
9    movements. Delays in a workshop being provided shall not
10    cause delays in discharge.
11        (5) The Program Administrators may establish shortened
12    Returning Resident Clean Jobs Training Programs to prepare
13    and place graduates in the Clean Jobs Workforce Network
14    Program or the Illinois Climate Works Preapprenticeship
15    Program following the graduate's release from commitment.
16    Any graduate of these programs must be guaranteed
17    placement in a Clean Jobs Workforce Hubs training program
18    or the Illinois Climate Works Preapprenticeship Program.
19        (6) The Director of Corrections shall:
20            (i) Ensure that the wardens or superintendents of
21        all correctional institutions and facilities visibly
22        post information on the Program in an accessible
23        manner for committed individuals.
24            (ii) Identify the institutions and facilities
25        within the Department of Corrections that will offer
26        the Program. The determination of which facility will

 

 

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1        offer the Program shall be based on available
2        programming space, staffing, population, facility
3        mission, security concerns, and any other relevant
4        factor in determining suitable locations for the
5        Program.
6    (i) Performance metrics.
7        (1) The Program Administrators shall collect data to
8    evaluate and ensure Program and participant success,
9    including:
10            (i) the number of returning residents who enrolled
11        in the Program;
12            (ii) the number of returning residents who
13        completed the Program;
14            (iii) the total number of individuals discharged;
15            (iv) the demographics of each entering and
16        graduating class;
17            (v) the percentage of graduates employed at 6 and
18        12 months after release;
19            (vi) the recidivism rate of Program participants
20        at 3 and 5 years after release;
21            (vii) the candidates interviewed and hiring
22        status;
23            (viii) the graduate employment status, such as
24        hire date, pay rates, whether full-time, part-time, or
25        seasonal, and separation date; and
26            (ix) continuing education and certifications

 

 

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1        gained by Program graduates.
2        (2) The Department of Commerce and Economic
3    Opportunity shall publish an annual report containing
4    these performance metrics. Data may be disaggregated by
5    institution, discharge, or residence address of resident,
6    and other factors.
7    (j) Funding. Funding for the Program is subject to
8appropriation from the Energy Transition Assistance Fund.
9Funding may be made available from other lawful sources,
10including donations, grants, and federal incentives.
11    (k) Access. The Program instructors and staff must pass a
12background check administered by the Department of Corrections
13prior to entering a Department of Corrections institution or
14facility. The Warden or Superintendent shall have the
15authority to deny a Program instructor or staff member entry
16into an institution or facility for safety and security
17concerns or failure to follow all facility procedures or
18protocols. A Program instructor or staff member administering
19the Program may be terminated or have his or her contract
20canceled if the Program instructor or staff member is denied
21entry into an institution or facility for safety and security
22concerns.
 
23    Section 5-55. Clean Energy Primes Contractor Accelerator
24Program.
25    (a) As used in this Section:

 

 

10200HB3666sam001- 41 -LRB102 13525 AMC 28481 a

1    "Approved vendor" means the definition of that term used
2and as may be updated by the Illinois Power Agency.
3    "Minority business" means a minority-owned business as
4defined in Section 2 of the Business Enterprise for
5Minorities, Women, and Persons with Disabilities Act.
6    "Minority Business Enterprise certification" means the
7certification or recognition certification affidavit from the
8State of Illinois Department of Central Management Services
9Business Enterprise Program or a program with equivalent
10requirements.
11    "Program" means the Clean Energy Primes Contractor
12Accelerator Program.
13    "Returning resident" has the meaning given to that term in
14Section 5-50 of this Act.
15    (b) Subject to appropriation, the Department shall
16develop, and through a Primes Program Administrator and
17Regional Primes Program Leads described in this Section,
18administer the Clean Energy Primes Contractor Accelerator
19Program. The Program shall be administered in 3 program
20delivery areas: the Northern Illinois Program Delivery Area
21covering Northern Illinois, the Central Illinois Program
22Delivery Area covering Central Illinois, and the Southern
23Illinois Program Delivery Area covering Southern Illinois.
24Prior to developing the Program, the Department shall solicit
25public comments, with a 30-day comment period, to gather input
26on Program implementation and associated community outreach

 

 

10200HB3666sam001- 42 -LRB102 13525 AMC 28481 a

1options.
2    (c) The Program shall be available to selected contractors
3who best meet the following criteria:
4        (1) 2 or more years of experience in a clean energy or
5    a related contracting field;
6        (2) at least $5,000 in annual business; and
7        (3) a substantial and demonstrated commitment of
8    investing in and partnering with individuals and
9    institutions in equity investment eligible communities.
10    (c-5) The Department shall develop scoring criteria to
11select contractors for the Program, which shall consider:
12        (1) projected hiring and industry job creation,
13    including wage and benefit expectations;
14        (2) a clear vision of strategic business growth and
15    how increased capitalization would benefit the business;
16        (3) past project work quality and demonstration of
17    technical knowledge;
18        (4) capacity the applicant is anticipated to bring to
19    project development;
20        (5) willingness to assume risk;
21        (6) anticipated revenues from future projects;
22        (7) history of commitment to advancing equity as
23    demonstrated by, among other things, employment of or
24    ownership by equity investment eligible persons and a
25    history of partnership with equity focused community
26    organizations or government programs; and

 

 

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1        (8) business models that build wealth in the larger
2    underserved community.
3    Applicants for Program participation shall be allowed to
4reapply for a future cohort if they are not selected, and the
5Primes Program Administrator shall inform each applicant of
6this option.
7    (d) The Department, in consultation with the Primes
8Program Administrator and Regional Primes Program Leads, shall
9select a new cohort of participant contractors from each
10Program Delivery Area every 18 months. Each regional cohort
11shall include between 3 and 5 participants. The Program shall
12cap contractors in the energy efficiency sector at 50% of
13available cohort spots and 50% of available grants and loans,
14if possible.
15    (e) The Department shall hire a Primes Program
16Administrator with experience in leading a large
17contractor-based business in Illinois; coaching and mentoring;
18the Illinois clean energy industry; and working with equity
19investment eligible community members, organizations, and
20businesses.
21    (f) The Department shall select 3 Regional Primes Program
22Leads who shall report directly to the Primes Program
23Administrator. The Regional Primes Program Leads shall be
24located within their Program Delivery Area and have experience
25in leading a large contractor-based business in Illinois;
26coaching and mentoring; the Illinois clean energy industry;

 

 

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1developing relationships with companies in the Program
2Delivery Area; and working with equity investment eligible
3community members, organizations, and businesses.
4    (g) The Department may determine how Program elements will
5be delivered or may contract with organizations with
6experience delivering the Program elements described in
7subsection (h) of this Section.
8    (h) The Clean Energy Primes Contractor Accelerator Program
9shall provide participants with:
10        (1) a 5-year, 6-month progressive course of one-on-one
11    coaching to assist each participant in developing an
12    achievable 5-year business plan, including review of
13    monthly metrics, and advice on achieving participant's
14    goals;
15        (2) operational support grants not to exceed
16    $1,000,000 annually to support the growth of participant
17    contractors with access to capital for upfront project
18    costs and pre-development funding, among others. The
19    amount of the grant shall be based on anticipated project
20    size and scope;
21        (3) business coaching based on the participant's
22    needs;
23        (4) a mentorship of approximately 2 years provided by
24    a qualified company in the participant's field;
25        (5) access to Clean Energy Contractor Incubator
26    Program services;

 

 

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1        (6) assistance with applying for Minority Business
2    Enterprise certification and other relevant certifications
3    and approved vendor status for programs offered by
4    utilities or other entities;
5        (7) assistance with preparing bids and Request for
6    Proposal applications;
7        (8) opportunities to be listed in any relevant
8    directories and databases organized by the Department of
9    Central Management Services;
10        (9) opportunities to connect with participants in
11    other Department programs;
12        (10) assistance connecting with and initiating
13    participation in the Illinois Power Agency's Adjustable
14    Block program, the Illinois Solar for All Program, and
15    utility programs; and
16        (11) financial development assistance programs such as
17    zero-interest and low-interest loans with the Climate Bank
18    as established by Article 850 of the Illinois Finance
19    Authority Act or a comparable financing mechanism. The
20    Illinois Finance Authority shall retain authority to
21    determine loan repayment terms and conditions.
22    (i) The Primes Program Administrator shall:
23        (1) collect and report performance metrics as
24    described in this Section;
25        (2) review and assess:
26            (i) participant work plans and annual goals; and

 

 

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1            (ii) the mentorship program, including approved
2        mentor companies and their stipend awards; and
3        (3) work with the Regional Primes Program Leads to
4    publicize the Program; design and implement a mentorship
5    program; and ensure participants are quickly on-boarded.
6    (j) The Regional Primes Program Leads shall:
7        (1) publicize the Program; the budget shall include
8    funds to pay community-based organizations with a track
9    record of working with equity investment eligible
10    communities to complete this work;
11        (2) recruit qualified Program applicants;
12        (3) assist Program applicants with the application
13    process;
14        (4) introduce participants to the Program offerings;
15        (5) conduct entry and annual assessments with
16    participants to identify training, coaching, and other
17    Program service needs;
18        (6) assist participants in developing goals on entry
19    and annually, and assessing progress toward meeting the
20    goals;
21        (7) establish a metric reporting system with each
22    participant and track the metrics for progress against the
23    contractor's work plan and Program goals;
24        (8) assist participants in receiving their Minority
25    Business Enterprise certification and any other relevant
26    certifications and approved vendor statuses;

 

 

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1        (9) match participants with Clean Energy Contractor
2    Incubator Program offerings and individualized expert
3    coaching, including training on working with returning
4    residents and companies that employ them;
5        (10) pair participants with a mentor company;
6        (11) facilitate connections between participants and
7    potential subcontractors and employees;
8        (12) dispense a participant's awarded operational
9    grant funding;
10        (13) connect participants to zero-interest and
11    low-interest loans from the Climate Bank as established by
12    Article 850 of the Illinois Finance Authority Act or a
13    comparable financing mechanism;
14        (14) encourage participants to apply for appropriate
15    State and private business opportunities;
16        (15) review a participant's progress and make a
17    recommendation to the Department about whether the
18    participant should continue in the Program, be considered
19    a Program graduate, and whether adjustments should be made
20    to a participant's grant funding, loans, and related
21    services;
22        (16) solicit information from participants, which
23    participants shall be required to provide, necessary to
24    understand the participant's business, including financial
25    and income information, certifications that the
26    participant is seeking to obtain, and ownership, employee,

 

 

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1    and subcontractor data, including compensation, length of
2    service, and demographics; and
3        (17) other duties as required.
4    (k) Performance metrics. The Primes Program Administrator
5and Regional Primes Program Leads shall collaborate to collect
6and report the following metrics quarterly to the Department
7and Advisory Council:
8        (1) demographic information on cohort recruiting and
9    formation, including racial, gender, geographic
10    distribution data, and data on the number and percentage
11    of R3 residents, environmental justice community
12    residents, foster care alumni, and formerly convicted
13    persons who are cohort applicants and admitted
14    participants;
15        (2) participant contractor engagement in other
16    Illinois clean energy programs such as the Adjustable
17    Block program, Illinois Solar for All Program, and the
18    utility-run energy efficiency and electric vehicle
19    programs;
20        (3) retention of participants in each cohort;
21        (4) total projects bid, started, and completed by
22    participants, including information about revenue, hiring,
23    and subcontractor relationships with projects;
24        (5) certifications issued;
25        (6) employment data for contractor hires and industry
26    jobs created, including demographic, salary, length of

 

 

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1    service, and geographic data;
2        (7) grants and loans distributed; and
3        (8) participant satisfaction with the Program.
4    The metrics in paragraphs (2), (4), and (6) shall be
5collected from Program participants and graduates for 10 years
6from their entrance into the Program to help the Department
7and Program Administrators understand the Program's long-term
8effect.
9    Data should be anonymized where needed to protect
10participant privacy.
11    The Department shall make such reports publicly available
12on its website.
13    (l) Mentorship Program.
14        (1) The Regional Primes Program Leads shall recruit,
15    and the Primes Program Administrator shall select, with
16    approval from the Department, private companies with the
17    following qualifications to mentor participants and assist
18    them in succeeding in the clean energy industry:
19            (i) excellent standing with state clean energy
20        programs;
21            (ii) 4 or more years of experience in their field;
22        and
23            (iii) a proven track record of success in their
24        field.
25        (2) Mentor companies may receive a stipend, determined
26    by the Department, for their participation. Mentor

 

 

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1    companies may identify what level of stipend they require.
2        (3) The Primes Program Administrator shall develop
3    guidelines for mentor company-mentee profit sharing or
4    purchased services agreements.
5        (4) The Regional Primes Program Leads shall:
6            (i) collaborate with mentor companies and
7        participants to create a plan for ongoing contact such
8        as on-the-job training, site walkthroughs, business
9        process and structure walkthroughs, quality assurance
10        and quality control reviews, and other relevant
11        activities;
12            (ii) recommend the mentor company-mentee pairings
13        and associated mentor company stipends for approval;
14            (iii) conduct an annual review of each mentor
15        company-mentee pairing and recommend whether the
16        pairing continues for a second year and the level of
17        stipend that is appropriate. The review shall also
18        ensure that any profit sharing and purchased services
19        agreements adhere to the guidelines established by the
20        Primes Program Administrator.
21        (5) Contractors may request reassignment to a new
22    mentor company.
23    (m) Disparity study. The Program Administrator shall
24cooperate with the Illinois Power Agency in the conduct of a
25disparity study, as described in subsection (c-15) of Section
261-75 of the Illinois Power Agency Act, and in the effectuation

 

 

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1of appropriate remedies necessary to address any
2discrimination that such study may find. Potential remedies
3shall include, but not be limited to, race-conscious remedies
4to rapidly eliminate discrimination faced by minority
5businesses and works in the industry this Program serves,
6consistent with the law. Remedies shall be developed through
7consultation with individuals, companies, and organizations
8that have expertise on discrimination faced in the market and
9potential legally permissible remedies for addressing it.
10Notwithstanding any other requirement of this Section, the
11Program Administrator shall modify program participation
12criteria or goals as soon as the report has been published, in
13such a way as is consistent with state and federal law, to
14rapidly eliminate discrimination on minority businesses and
15workers in the industry this Program serves by setting
16standards for Program participation. This study will be paid
17for with funds from the Energy Transition Assistance Fund or
18any other lawful source.
19    (n) Program budget.
20        (1) The Department may allocate up to $3,000,000
21    annually to the Primes Program Administrator for each of
22    the 3 regional budgets from the Energy Transition
23    Assistance Fund.
24        (2) The Primes Program Administrator shall work with
25    the Illinois Finance Authority and the Climate Bank as
26    established by Article 850 of the Illinois Finance

 

 

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1    Authority Act or comparable financing institution so that
2    loan loss reserves may be sufficient to underwrite
3    $7,000,000 in low-interest loans in each of the 3 Program
4    delivery areas.
5        (3) Any grant and loan funding shall be made available
6    to participants in a timely fashion.
 
7    Section 5-60. Jobs and Environmental Justice Grant
8Program.
9    (a) In order to provide upfront capital to support the
10development of projects, businesses, community organizations,
11and jobs creating opportunity for historically disadvantaged
12populations, and to provide seed capital to support community
13ownership of renewable energy projects, the Program shall
14create and administer a Jobs and Environmental Justice Grant
15Program. The grant program shall be designed to help remove
16barriers to project, community, and business development
17caused by a lack of capital.
18    (b) The grant program shall provide grant awards of up to
19$1,000,000 per application to support the development of
20renewable energy resources as defined in Section 1-10 of the
21Illinois Power Agency Act, and energy efficiency measures as
22defined in Section 8-103B of the Public Utilities Act. The
23amount of a grant award shall be based on a project's size and
24scope. Grants shall be provided upfront, in advance of other
25incentives, to provide businesses, organizations, and

 

 

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1community groups with capital needed to plan, develop, and
2execute a project. Grants shall be designed to coordinate with
3and supplement existing incentive programs, such as the
4Adjustable Block program, the Illinois Solar for All Program,
5the community renewable generation projects, and renewable
6energy procurements as described in the Illinois Power Agency
7Act, as well as utility energy efficiency measures as
8described in Section 8-103B of the Public Utilities Act.
9    (c) The Jobs and Environmental Justice Grant Program shall
10include 2 subprograms:
11        (1) the Equitable Energy Future Grant Program; and
12        (2) the Community Solar Energy Sovereignty Grant
13    Program.
14    (d) The Equitable Energy Future Grant Program is designed
15to provide seed funding and pre-development funding
16opportunities for disadvantaged contractors and to projects
17that earn Equitable Energy Future Certification under Section
181-75 of the Illinois Power Agency Act.
19        (1) The Equitable Energy Future Grant shall be awarded
20    to businesses and nonprofit organizations for costs
21    related to the following activities and project needs:
22            (i) planning and project development, including
23        costs for professional services such as architecture,
24        design, engineering, auditing, consulting, and
25        developer services;
26            (ii) project application, deposit, and approval;

 

 

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1            (iii) purchasing and leasing of land;
2            (iv) permitting and zoning;
3            (v) interconnection application costs and fees,
4        studies, and expenses;
5            (vi) equipment and supplies;
6            (vii) community outreach, marketing, and
7        engagement; and
8            (viii) staff and operations expenses.
9        (2) Grants shall be awarded to projects that most
10    effectively provide opportunities for equity eligible
11    contractors and equity investment eligible communities,
12    and should consider the following criteria:
13            (i) projects that provide community benefits,
14        which are projects that have one or more of the
15        following characteristics: (A) greater than 50% of the
16        project's energy provided or saved benefits low-income
17        residents, or (B) the project benefits not-for-profit
18        organizations providing services to low-income
19        households, affordable housing owners, or
20        community-based limited liability companies providing
21        services to low-income households;
22            (ii) projects that are located in equity
23        investment eligible communities;
24            (iii) projects that provide on-the-job training;
25            (iv) projects that contract with contractors who
26        are participating or have participated in the Clean

 

 

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1        Energy Contractor Incubator Program, Clean Energy
2        Primes Contractor Accelerator Program, or similar
3        programs; and
4            (v) projects employ a minimum of 51% of its
5        workforce from participants and graduates of the Clean
6        Jobs Workforce Network Program, Illinois Climate Works
7        Preapprenticeship Program, and Returning Residents
8        Clean Jobs Training Program.
9        (3) Grants shall be awarded to applicants that meet
10    the following criteria:
11            (i) earn Equitable Energy Future Certification per
12        the equity accountability systems described in
13        subsection (c-10) of Section 1-75 of the Illinois
14        Power Agency Act, or meet the equity building criteria
15        in paragraph (9.5) of subsection (g) of Section 8-103B
16        of the Public Utilities Act; and
17            (ii) provide demonstrable proof of a historical or
18        future, and persisting, long-term partnership with the
19        community in which the project will be located.
20    (e) The Community Solar Energy Sovereignty Grant Program
21shall be designed to support the pre-development and
22development of community solar projects that promote community
23ownership and energy sovereignty.
24        (1) Grants shall be awarded to applicants that best
25    demonstrate the ability and intent to create community
26    ownership and other local community benefits, including

 

 

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1    local community wealth building via community renewable
2    generation projects. Grants shall be prioritized to
3    applicants for whom:
4            (i) the proposed project is located in and
5        supporting an equity investment eligible community or
6        communities; and
7            (ii) the proposed project provides additional
8        benefits for participating low-income households.
9        (2) Grant funds shall be awarded to support project
10    pre-development work and may also be awarded to support
11    the development of programs and entities to assist in the
12    long-term governance, management, and maintenance of
13    community solar projects, such as community solar
14    cooperatives. For example, funds may be awarded for:
15            (i) early stage project planning;
16            (ii) project team organization;
17            (iii) site identification;
18            (iv) organizing a project business model and
19        securing financing;
20            (v) procurement and contracting;
21            (vi) customer outreach and enrollment;
22            (vii) preliminary site assessments;
23            (viii) development of cooperative or community
24        ownership model; and
25            (ix) development of project models that allocate
26        benefits to equity investment eligible communities.

 

 

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1        (3) Grant recipients shall submit reports to the
2    Agency at the end of the grant term on the activities
3    pursued under their grant and any lessons learned for
4    publication on the Agency's website so that other energy
5    sovereignty projects may learn from their experience.
6        (4) Eligible applicants shall include community-based
7    organizations, as defined in the Illinois Power Agency's
8    long-term renewable resources procurement plan, or
9    technical service providers working in direct partnership
10    with community-based organizations.
11        (5) The amount of a grant shall be based on a projects'
12    size and scope. Grants shall allow for a significant
13    portion, or the entirety, of the grant value to be made
14    upfront, in advance of other incentives, to ensure
15    businesses and organizations have the capital needed to
16    plan, develop, and execute a project.
17    (f) The application process for both subprograms shall not
18be burdensome on applicants, nor require extensive technical
19knowledge, and shall be able to be completed on less than 4
20standard letter-sized pages.
21    (g) The Program shall coordinate its grant subprograms
22with the Clean Energy Jobs and Justice Fund to coordinate
23grants under this Program with low-interest and no-interest
24financing opportunities offered by the fund.
25    (h) The grant subprograms may have a budget of up to
26$34,000,000 per year. No more than 25% of the allocated budget

 

 

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1shall go to the Community Solar Energy Sovereignty Grant
2Program.
 
3    Section 5-65. Energy Workforce Advisory Council.
4    (a) The Energy Workforce Advisory Council is hereby
5created within the Department.
6    (b) The Council shall consist of the following voting
7members appointed by the Governor with the advice and consent
8of the Senate, chosen to ensure diverse geographic
9representation:
10        (1) two members representing trade associations
11    representing companies active in the clean energy
12    industries;
13        (2) two members representing a labor union;
14        (3) one member who has participated in the workforce
15    development programs created under this Act;
16        (4) two members representing higher education;
17        (5) two members representing economic development
18    organizations;
19        (6) two members representing local workforce
20    innovation boards;
21        (7) two residents of environmental justice
22    communities;
23        (8) three members from community-based organizations
24    in environmental justice communities and community-based
25    organizations serving low-income persons and families;

 

 

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1        (9) two members who are policy or implementation
2    experts on small business development, contractor
3    incubation, or small business lending and financing needs;
4        (10) two members who are policy or implementation
5    experts on workforce development for populations and
6    individuals such as low-income persons and families,
7    environmental justice communities, BIPOC communities,
8    formerly convicted persons, persons who are or were in the
9    child welfare system, energy workers, gender nonconforming
10    and transgender individuals, and youth; and
11        (11) two representatives of clean energy businesses,
12    nonprofit organizations, or other groups that provide
13    clean energy.
14    The President of the Senate, the Minority Leader of the
15Senate, the Speaker of the House of Representatives, and the
16Minority Leader of the House of Representatives shall each
17appoint 2 nonvoting members of the Council.
18    (c) The Council shall:
19        (1) coordinate and inform on worker and contractor
20    support priorities beyond current federal, State, local,
21    and private programs and resources;
22        (2) advise and produce recommendations for further
23    federal, State, and local programs and activities;
24        (3) fulfill other duties determined by the Council to
25    further the success of the Workforce Hubs, Incubators, and
26    Returning Residents Programs;

 

 

10200HB3666sam001- 60 -LRB102 13525 AMC 28481 a

1        (4) review program performance metrics;
2        (5) provide recommendations to the Department on the
3    administration of the following programs:
4            (i) the Clean Jobs Workforce Network Program;
5            (ii) the Illinois Climate Works Preapprenticeship
6        Program;
7            (iii) the Clean Energy Contractor Incubator
8        Program;
9            (iv) the Returning Residents Clean Jobs Training
10        Program; and
11            (v) the Clean Energy Primes Contractor Accelerator
12        Program;
13        (6) recommend outreach opportunities to ensure that
14    program contracting, training, and other opportunities are
15    widely publicized;
16        (7) participate in independent program evaluations;
17    and
18        (8) assist the Department by providing insight into
19    how relevant State, local, and federal programs are viewed
20    by residents, businesses, and institutions within their
21    respective communities.
22    (d) The Council shall conduct its first meeting within 30
23days after all members have been appointed. The Council shall
24meet quarterly after its first meeting. Additional hearings
25and public meetings are permitted at the discretion of the
26members. The Council may meet in person or through video or

 

 

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1audio conference. Meeting times may be varied to accommodate
2Council member schedules.
3    (e) Members shall serve without compensation and shall be
4reimbursed for reasonable expenses incurred in the performance
5of their duties from funds appropriated for that purpose.
 
6    Section 5-90. Repealer. This Act is repealed 14 years
7after the effective date of this Act.
 
8    Section 5-95. The Illinois Finance Authority Act is
9amended by changing Sections 801-1, 801-5, 801-10, and 801-40
10and adding Article 850 as follows:
 
11    (20 ILCS 3501/801-1)
12    Sec. 801-1. Short Title. Articles 801 through 850 845 of
13this Act may be cited as the Illinois Finance Authority Act.
14References to "this Act" in Articles 801 through 850 845 are
15references to the Illinois Finance Authority Act.
16(Source: P.A. 95-331, eff. 8-21-07.)
 
17    (20 ILCS 3501/801-5)
18    Sec. 801-5. Findings and declaration of policy. The
19General Assembly hereby finds, determines and declares:
20    (a) that there are a number of existing State authorities
21authorized to issue bonds to alleviate the conditions and
22promote the objectives set forth below; and to provide a

 

 

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1stronger, better coordinated development effort, it is
2determined to be in the interest of promoting the health,
3safety, morals and general welfare of all the people of the
4State to consolidate certain of such existing authorities into
5one finance authority;
6    (b) that involuntary unemployment affects the health,
7safety, morals and general welfare of the people of the State
8of Illinois;
9    (c) that the economic burdens resulting from involuntary
10unemployment fall in part upon the State in the form of public
11assistance and reduced tax revenues, and in the event the
12unemployed worker and his family migrate elsewhere to find
13work, may also fall upon the municipalities and other taxing
14districts within the areas of unemployment in the form of
15reduced tax revenues, thereby endangering their financial
16ability to support necessary governmental services for their
17remaining inhabitants;
18    (d) that a vigorous growing economy is the basic source of
19job opportunities;
20    (e) that protection against involuntary unemployment, its
21economic burdens and the spread of economic stagnation can
22best be provided by promoting, attracting, stimulating and
23revitalizing industry, manufacturing and commerce in the
24State;
25    (f) that the State has a responsibility to help create a
26favorable climate for new and improved job opportunities for

 

 

10200HB3666sam001- 63 -LRB102 13525 AMC 28481 a

1its citizens by encouraging the development of commercial
2businesses and industrial and manufacturing plants within the
3State;
4    (g) that increased availability of funds for construction
5of new facilities and the expansion and improvement of
6existing facilities for industrial, commercial and
7manufacturing facilities will provide for new and continued
8employment in the construction industry and alleviate the
9burden of unemployment;
10    (h) that in the absence of direct governmental subsidies
11the unaided operations of private enterprise do not provide
12sufficient resources for residential construction,
13rehabilitation, rental or purchase, and that support from
14housing related commercial facilities is one means of
15stimulating residential construction, rehabilitation, rental
16and purchase;
17    (i) that it is in the public interest and the policy of
18this State to foster and promote by all reasonable means the
19provision of adequate capital markets and facilities for
20borrowing money by units of local government, and for the
21financing of their respective public improvements and other
22governmental purposes within the State from proceeds of bonds
23or notes issued by those governmental units; and to assist
24local governmental units in fulfilling their needs for those
25purposes by use of creation of indebtedness;
26    (j) that it is in the public interest and the policy of

 

 

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1this State to the extent possible, to reduce the costs of
2indebtedness to taxpayers and residents of this State and to
3encourage continued investor interest in the purchase of bonds
4or notes of governmental units as sound and preferred
5securities for investment; and to encourage governmental units
6to continue their independent undertakings of public
7improvements and other governmental purposes and the financing
8thereof, and to assist them in those activities by making
9funds available at reduced interest costs for orderly
10financing of those purposes, especially during periods of
11restricted credit or money supply, and particularly for those
12governmental units not otherwise able to borrow for those
13purposes;
14    (k) that in this State the following conditions exist: (i)
15an inadequate supply of funds at interest rates sufficiently
16low to enable persons engaged in agriculture in this State to
17pursue agricultural operations at present levels; (ii) that
18such inability to pursue agricultural operations lessens the
19supply of agricultural commodities available to fulfill the
20needs of the citizens of this State; (iii) that such inability
21to continue operations decreases available employment in the
22agricultural sector of the State and results in unemployment
23and its attendant problems; (iv) that such conditions prevent
24the acquisition of an adequate capital stock of farm equipment
25and machinery, much of which is manufactured in this State,
26therefore impairing the productivity of agricultural land and,

 

 

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1further, causing unemployment or lack of appropriate increase
2in employment in such manufacturing; (v) that such conditions
3are conducive to consolidation of acreage of agricultural land
4with fewer individuals living and farming on the traditional
5family farm; (vi) that these conditions result in a loss in
6population, unemployment and movement of persons from rural to
7urban areas accompanied by added costs to communities for
8creation of new public facilities and services; (vii) that
9there have been recurrent shortages of funds for agricultural
10purposes from private market sources at reasonable rates of
11interest; (viii) that these shortages have made the sale and
12purchase of agricultural land to family farmers a virtual
13impossibility in many parts of the State; (ix) that the
14ordinary operations of private enterprise have not in the past
15corrected these conditions; and (x) that a stable supply of
16adequate funds for agricultural financing is required to
17encourage family farmers in an orderly and sustained manner
18and to reduce the problems described above;
19    (l) that for the benefit of the people of the State of
20Illinois, the conduct and increase of their commerce, the
21protection and enhancement of their welfare, the development
22of continued prosperity and the improvement of their health
23and living conditions it is essential that all the people of
24the State be given the fullest opportunity to learn and to
25develop their intellectual and mental capacities and skills;
26that to achieve these ends it is of the utmost importance that

 

 

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1private institutions of higher education within the State be
2provided with appropriate additional means to assist the
3people of the State in achieving the required levels of
4learning and development of their intellectual and mental
5capacities and skills and that cultural institutions within
6the State be provided with appropriate additional means to
7expand the services and resources which they offer for the
8cultural, intellectual, scientific, educational and artistic
9enrichment of the people of the State;
10    (m) that in order to foster civic and neighborhood pride,
11citizens require access to facilities such as educational
12institutions, recreation, parks and open spaces, entertainment
13and sports, a reliable transportation network, cultural
14facilities and theaters and other facilities as authorized by
15this Act, and that it is in the best interests of the State to
16lower the costs of all such facilities by providing financing
17through the State;
18    (n) that to preserve and protect the health of the
19citizens of the State, and lower the costs of health care, that
20financing for health facilities should be provided through the
21State; and it is hereby declared to be the policy of the State,
22in the interest of promoting the health, safety, morals and
23general welfare of all the people of the State, to address the
24conditions noted above, to increase job opportunities and to
25retain existing jobs in the State, by making available through
26the Illinois Finance Authority, hereinafter created, funds for

 

 

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1the development, improvement and creation of industrial,
2housing, local government, educational, health, public purpose
3and other projects; to issue its bonds and notes to make funds
4at reduced rates and on more favorable terms for borrowing by
5local governmental units through the purchase of the bonds or
6notes of the governmental units; and to make or acquire loans
7for the acquisition and development of agricultural
8facilities; to provide financing for private institutions of
9higher education, cultural institutions, health facilities and
10other facilities and projects as authorized by this Act; and
11to grant broad powers to the Illinois Finance Authority to
12accomplish and to carry out these policies of the State which
13are in the public interest of the State and of its taxpayers
14and residents;
15    (o) that providing financing alternatives for projects
16that are located outside the State that are owned, operated,
17leased, managed by, or otherwise affiliated with, institutions
18located within the State would promote the economy of the
19State for the benefit of the health, welfare, safety, trade,
20commerce, industry, and economy of the people of the State by
21creating employment opportunities in the State and lowering
22the cost of accessing healthcare, private education, or
23cultural institutions in the State by reducing the cost of
24financing or operating those projects; and
25    (p) that the realization of the objectives of the
26Authority identified in this Act including, without

 

 

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1limitation, those designed (1) to assist and enable veterans,
2minorities, women and disabled individuals to own and operate
3small businesses; (2) to assist in the delivery of
4agricultural assistance; and (3) to aid, assist, and encourage
5economic growth and development within this State, will be
6enhanced by empowering the Authority to purchase loan
7participations from participating lenders; .
8    (q) that climate change threatens the health, welfare, and
9prosperity of all the residents of the State;
10    (r) combating climate change is necessary to preserve and
11enhance the health, welfare, and prosperity of all the
12residents of the State;
13    (s) that the promotion of the development and
14implementation of clean energy is necessary to combat climate
15change and is hereby declared to be the policy of the State;
16and
17    (t) that designating the Authority as the "Climate Bank"
18to aid in all respects with providing financial assistance,
19programs, and products to finance and otherwise develop and
20implement equitable clean energy opportunities in the State to
21mitigate or adapt to the negative consequences of climate
22change in an equitable manner will further the clean energy
23policy of the State.
24(Source: P.A. 100-919, eff. 8-17-18.)
 
25    (20 ILCS 3501/801-10)

 

 

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1    Sec. 801-10. Definitions. The following terms, whenever
2used or referred to in this Act, shall have the following
3meanings, except in such instances where the context may
4clearly indicate otherwise:
5    (a) The term "Authority" means the Illinois Finance
6Authority created by this Act.
7    (b) The term "project" means an industrial project, clean
8energy project, conservation project, housing project, public
9purpose project, higher education project, health facility
10project, cultural institution project, municipal bond program
11project, PACE Project, agricultural facility or agribusiness,
12and "project" may include any combination of one or more of the
13foregoing undertaken jointly by any person with one or more
14other persons.
15    (c) The term "public purpose project" means (i) any
16project or facility, including without limitation land,
17buildings, structures, machinery, equipment and all other real
18and personal property, which is authorized or required by law
19to be acquired, constructed, improved, rehabilitated,
20reconstructed, replaced or maintained by any unit of
21government or any other lawful public purpose, including
22provision of working capital, which is authorized or required
23by law to be undertaken by any unit of government or (ii) costs
24incurred and other expenditures, including expenditures for
25management, investment, or working capital costs, incurred in
26connection with the reform, consolidation, or implementation

 

 

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1of the transition process as described in Articles 22B and 22C
2of the Illinois Pension Code.
3    (d) The term "industrial project" means the acquisition,
4construction, refurbishment, creation, development or
5redevelopment of any facility, equipment, machinery, real
6property or personal property for use by any instrumentality
7of the State or its political subdivisions, for use by any
8person or institution, public or private, for profit or not
9for profit, or for use in any trade or business, including, but
10not limited to, any industrial, manufacturing, clean energy,
11or commercial enterprise that is located within or outside the
12State, provided that, with respect to a project involving
13property located outside the State, the property must be
14owned, operated, leased or managed by an entity located within
15the State or an entity affiliated with an entity located
16within the State, and which is (1) a capital project or clean
17energy project, including, but not limited to: (i) land and
18any rights therein, one or more buildings, structures or other
19improvements, machinery and equipment, whether now existing or
20hereafter acquired, and whether or not located on the same
21site or sites; (ii) all appurtenances and facilities
22incidental to the foregoing, including, but not limited to,
23utilities, access roads, railroad sidings, track, docking and
24similar facilities, parking facilities, dockage, wharfage,
25railroad roadbed, track, trestle, depot, terminal, switching
26and signaling or related equipment, site preparation and

 

 

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1landscaping; and (iii) all non-capital costs and expenses
2relating thereto or (2) any addition to, renovation,
3rehabilitation or improvement of a capital project or a clean
4energy project, or (3) any activity or undertaking within or
5outside the State, provided that, with respect to a project
6involving property located outside the State, the property
7must be owned, operated, leased or managed by an entity
8located within the State or an entity affiliated with an
9entity located within the State, which the Authority
10determines will aid, assist or encourage economic growth,
11development or redevelopment within the State or any area
12thereof, will promote the expansion, retention or
13diversification of employment opportunities within the State
14or any area thereof or will aid in stabilizing or developing
15any industry or economic sector of the State economy. The term
16"industrial project" also means the production of motion
17pictures.
18    (e) The term "bond" or "bonds" shall include bonds, notes
19(including bond, grant or revenue anticipation notes),
20certificates and/or other evidences of indebtedness
21representing an obligation to pay money, including refunding
22bonds.
23    (f) The terms "lease agreement" and "loan agreement" shall
24mean: (i) an agreement whereby a project acquired by the
25Authority by purchase, gift or lease is leased to any person,
26corporation or unit of local government which will use or

 

 

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1cause the project to be used as a project as heretofore defined
2upon terms providing for lease rental payments at least
3sufficient to pay when due all principal of, interest and
4premium, if any, on any bonds of the Authority issued with
5respect to such project, providing for the maintenance,
6insuring and operation of the project on terms satisfactory to
7the Authority, providing for disposition of the project upon
8termination of the lease term, including purchase options or
9abandonment of the premises, and such other terms as may be
10deemed desirable by the Authority, or (ii) any agreement
11pursuant to which the Authority agrees to loan the proceeds of
12its bonds issued with respect to a project or other funds of
13the Authority to any person which will use or cause the project
14to be used as a project as heretofore defined upon terms
15providing for loan repayment installments at least sufficient
16to pay when due all principal of, interest and premium, if any,
17on any bonds of the Authority, if any, issued with respect to
18the project, and providing for maintenance, insurance and
19other matters as may be deemed desirable by the Authority.
20    (g) The term "financial aid" means the expenditure of
21Authority funds or funds provided by the Authority through the
22issuance of its bonds, notes or other evidences of
23indebtedness or from other sources for the development,
24construction, acquisition or improvement of a project.
25    (h) The term "person" means an individual, corporation,
26unit of government, business trust, estate, trust, partnership

 

 

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1or association, 2 or more persons having a joint or common
2interest, or any other legal entity.
3    (i) The term "unit of government" means the federal
4government, the State or unit of local government, a school
5district, or any agency or instrumentality, office, officer,
6department, division, bureau, commission, college or
7university thereof.
8    (j) The term "health facility" means: (a) any public or
9private institution, place, building, or agency required to be
10licensed under the Hospital Licensing Act; (b) any public or
11private institution, place, building, or agency required to be
12licensed under the Nursing Home Care Act, the Specialized
13Mental Health Rehabilitation Act of 2013, the ID/DD Community
14Care Act, or the MC/DD Act; (c) any public or licensed private
15hospital as defined in the Mental Health and Developmental
16Disabilities Code; (d) any such facility exempted from such
17licensure when the Director of Public Health attests that such
18exempted facility meets the statutory definition of a facility
19subject to licensure; (e) any other public or private health
20service institution, place, building, or agency which the
21Director of Public Health attests is subject to certification
22by the Secretary, U.S. Department of Health and Human Services
23under the Social Security Act, as now or hereafter amended, or
24which the Director of Public Health attests is subject to
25standard-setting by a recognized public or voluntary
26accrediting or standard-setting agency; (f) any public or

 

 

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1private institution, place, building or agency engaged in
2providing one or more supporting services to a health
3facility; (g) any public or private institution, place,
4building or agency engaged in providing training in the
5healing arts, including, but not limited to, schools of
6medicine, dentistry, osteopathy, optometry, podiatry, pharmacy
7or nursing, schools for the training of x-ray, laboratory or
8other health care technicians and schools for the training of
9para-professionals in the health care field; (h) any public or
10private congregate, life or extended care or elderly housing
11facility or any public or private home for the aged or infirm,
12including, without limitation, any Facility as defined in the
13Life Care Facilities Act; (i) any public or private mental,
14emotional or physical rehabilitation facility or any public or
15private educational, counseling, or rehabilitation facility or
16home, for those persons with a developmental disability, those
17who are physically ill or disabled, the emotionally disturbed,
18those persons with a mental illness or persons with learning
19or similar disabilities or problems; (j) any public or private
20alcohol, drug or substance abuse diagnosis, counseling
21treatment or rehabilitation facility, (k) any public or
22private institution, place, building or agency licensed by the
23Department of Children and Family Services or which is not so
24licensed but which the Director of Children and Family
25Services attests provides child care, child welfare or other
26services of the type provided by facilities subject to such

 

 

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1licensure; (l) any public or private adoption agency or
2facility; and (m) any public or private blood bank or blood
3center. "Health facility" also means a public or private
4structure or structures suitable primarily for use as a
5laboratory, laundry, nurses or interns residence or other
6housing or hotel facility used in whole or in part for staff,
7employees or students and their families, patients or
8relatives of patients admitted for treatment or care in a
9health facility, or persons conducting business with a health
10facility, physician's facility, surgicenter, administration
11building, research facility, maintenance, storage or utility
12facility and all structures or facilities related to any of
13the foregoing or required or useful for the operation of a
14health facility, including parking or other facilities or
15other supporting service structures required or useful for the
16orderly conduct of such health facility. "Health facility"
17also means, with respect to a project located outside the
18State, any public or private institution, place, building, or
19agency which provides services similar to those described
20above, provided that such project is owned, operated, leased
21or managed by a participating health institution located
22within the State, or a participating health institution
23affiliated with an entity located within the State.
24    (k) The term "participating health institution" means (i)
25a private corporation or association or (ii) a public entity
26of this State, in either case authorized by the laws of this

 

 

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1State or the applicable state to provide or operate a health
2facility as defined in this Act and which, pursuant to the
3provisions of this Act, undertakes the financing, construction
4or acquisition of a project or undertakes the refunding or
5refinancing of obligations, loans, indebtedness or advances as
6provided in this Act.
7    (l) The term "health facility project", means a specific
8health facility work or improvement to be financed or
9refinanced (including without limitation through reimbursement
10of prior expenditures), acquired, constructed, enlarged,
11remodeled, renovated, improved, furnished, or equipped, with
12funds provided in whole or in part hereunder, any accounts
13receivable, working capital, liability or insurance cost or
14operating expense financing or refinancing program of a health
15facility with or involving funds provided in whole or in part
16hereunder, or any combination thereof.
17    (m) The term "bond resolution" means the resolution or
18resolutions authorizing the issuance of, or providing terms
19and conditions related to, bonds issued under this Act and
20includes, where appropriate, any trust agreement, trust
21indenture, indenture of mortgage or deed of trust providing
22terms and conditions for such bonds.
23    (n) The term "property" means any real, personal or mixed
24property, whether tangible or intangible, or any interest
25therein, including, without limitation, any real estate,
26leasehold interests, appurtenances, buildings, easements,

 

 

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1equipment, furnishings, furniture, improvements, machinery,
2rights of way, structures, accounts, contract rights or any
3interest therein.
4    (o) The term "revenues" means, with respect to any
5project, the rents, fees, charges, interest, principal
6repayments, collections and other income or profit derived
7therefrom.
8    (p) The term "higher education project" means, in the case
9of a private institution of higher education, an educational
10facility to be acquired, constructed, enlarged, remodeled,
11renovated, improved, furnished, or equipped, or any
12combination thereof.
13    (q) The term "cultural institution project" means, in the
14case of a cultural institution, a cultural facility to be
15acquired, constructed, enlarged, remodeled, renovated,
16improved, furnished, or equipped, or any combination thereof.
17    (r) The term "educational facility" means any property
18located within the State, or any property located outside the
19State, provided that, if the property is located outside the
20State, it must be owned, operated, leased or managed by an
21entity located within the State or an entity affiliated with
22an entity located within the State, in each case constructed
23or acquired before or after the effective date of this Act,
24which is or will be, in whole or in part, suitable for the
25instruction, feeding, recreation or housing of students, the
26conducting of research or other work of a private institution

 

 

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1of higher education, the use by a private institution of
2higher education in connection with any educational, research
3or related or incidental activities then being or to be
4conducted by it, or any combination of the foregoing,
5including, without limitation, any such property suitable for
6use as or in connection with any one or more of the following:
7an academic facility, administrative facility, agricultural
8facility, assembly hall, athletic facility, auditorium,
9boating facility, campus, communication facility, computer
10facility, continuing education facility, classroom, dining
11hall, dormitory, exhibition hall, fire fighting facility, fire
12prevention facility, food service and preparation facility,
13gymnasium, greenhouse, health care facility, hospital,
14housing, instructional facility, laboratory, library,
15maintenance facility, medical facility, museum, offices,
16parking area, physical education facility, recreational
17facility, research facility, stadium, storage facility,
18student union, study facility, theatre or utility.
19    (s) The term "cultural facility" means any property
20located within the State, or any property located outside the
21State, provided that, if the property is located outside the
22State, it must be owned, operated, leased or managed by an
23entity located within the State or an entity affiliated with
24an entity located within the State, in each case constructed
25or acquired before or after the effective date of this Act,
26which is or will be, in whole or in part, suitable for the

 

 

10200HB3666sam001- 79 -LRB102 13525 AMC 28481 a

1particular purposes or needs of a cultural institution,
2including, without limitation, any such property suitable for
3use as or in connection with any one or more of the following:
4an administrative facility, aquarium, assembly hall,
5auditorium, botanical garden, exhibition hall, gallery,
6greenhouse, library, museum, scientific laboratory, theater or
7zoological facility, and shall also include, without
8limitation, books, works of art or music, animal, plant or
9aquatic life or other items for display, exhibition or
10performance. The term "cultural facility" includes buildings
11on the National Register of Historic Places which are owned or
12operated by nonprofit entities.
13    (t) "Private institution of higher education" means a
14not-for-profit educational institution which is not owned by
15the State or any political subdivision, agency,
16instrumentality, district or municipality thereof, which is
17authorized by law to provide a program of education beyond the
18high school level and which:
19        (1) Admits as regular students only individuals having
20    a certificate of graduation from a high school, or the
21    recognized equivalent of such a certificate;
22        (2) Provides an educational program for which it
23    awards a bachelor's degree, or provides an educational
24    program, admission into which is conditioned upon the
25    prior attainment of a bachelor's degree or its equivalent,
26    for which it awards a postgraduate degree, or provides not

 

 

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1    less than a 2-year program which is acceptable for full
2    credit toward such a degree, or offers a 2-year program in
3    engineering, mathematics, or the physical or biological
4    sciences which is designed to prepare the student to work
5    as a technician and at a semiprofessional level in
6    engineering, scientific, or other technological fields
7    which require the understanding and application of basic
8    engineering, scientific, or mathematical principles or
9    knowledge;
10        (3) Is accredited by a nationally recognized
11    accrediting agency or association or, if not so
12    accredited, is an institution whose credits are accepted,
13    on transfer, by not less than 3 institutions which are so
14    accredited, for credit on the same basis as if transferred
15    from an institution so accredited, and holds an unrevoked
16    certificate of approval under the Private College Act from
17    the Board of Higher Education, or is qualified as a
18    "degree granting institution" under the Academic Degree
19    Act; and
20        (4) Does not discriminate in the admission of students
21    on the basis of race or color. "Private institution of
22    higher education" also includes any "academic
23    institution".
24    (u) The term "academic institution" means any
25not-for-profit institution which is not owned by the State or
26any political subdivision, agency, instrumentality, district

 

 

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1or municipality thereof, which institution engages in, or
2facilitates academic, scientific, educational or professional
3research or learning in a field or fields of study taught at a
4private institution of higher education. Academic institutions
5include, without limitation, libraries, archives, academic,
6scientific, educational or professional societies,
7institutions, associations or foundations having such
8purposes.
9    (v) The term "cultural institution" means any
10not-for-profit institution which is not owned by the State or
11any political subdivision, agency, instrumentality, district
12or municipality thereof, which institution engages in the
13cultural, intellectual, scientific, educational or artistic
14enrichment of the people of the State. Cultural institutions
15include, without limitation, aquaria, botanical societies,
16historical societies, libraries, museums, performing arts
17associations or societies, scientific societies and zoological
18societies.
19    (w) The term "affiliate" means, with respect to financing
20of an agricultural facility or an agribusiness, any lender,
21any person, firm or corporation controlled by, or under common
22control with, such lender, and any person, firm or corporation
23controlling such lender.
24    (x) The term "agricultural facility" means land, any
25building or other improvement thereon or thereto, and any
26personal properties deemed necessary or suitable for use,

 

 

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1whether or not now in existence, in farming, ranching, the
2production of agricultural commodities (including, without
3limitation, the products of aquaculture, hydroponics and
4silviculture) or the treating, processing or storing of such
5agricultural commodities when such activities are customarily
6engaged in by farmers as a part of farming and which land,
7building, improvement or personal property is located within
8the State, or is located outside the State, provided that, if
9such property is located outside the State, it must be owned,
10operated, leased, or managed by an entity located within the
11State or an entity affiliated with an entity located within
12the State.
13    (y) The term "lender" with respect to financing of an
14agricultural facility or an agribusiness, means any federal or
15State chartered bank, Federal Land Bank, Production Credit
16Association, Bank for Cooperatives, federal or State chartered
17savings and loan association or building and loan association,
18Small Business Investment Company or any other institution
19qualified within this State to originate and service loans,
20including, but without limitation to, insurance companies,
21credit unions and mortgage loan companies. "Lender" also means
22a wholly owned subsidiary of a manufacturer, seller or
23distributor of goods or services that makes loans to
24businesses or individuals, commonly known as a "captive
25finance company".
26    (z) The term "agribusiness" means any sole proprietorship,

 

 

10200HB3666sam001- 83 -LRB102 13525 AMC 28481 a

1limited partnership, co-partnership, joint venture,
2corporation or cooperative which operates or will operate a
3facility located within the State or outside the State,
4provided that, if any facility is located outside the State,
5it must be owned, operated, leased, or managed by an entity
6located within the State or an entity affiliated with an
7entity located within the State, that is related to the
8processing of agricultural commodities (including, without
9limitation, the products of aquaculture, hydroponics and
10silviculture) or the manufacturing, production or construction
11of agricultural buildings, structures, equipment, implements,
12and supplies, or any other facilities or processes used in
13agricultural production. Agribusiness includes but is not
14limited to the following:
15        (1) grain handling and processing, including grain
16    storage, drying, treatment, conditioning, mailing and
17    packaging;
18        (2) seed and feed grain development and processing;
19        (3) fruit and vegetable processing, including
20    preparation, canning and packaging;
21        (4) processing of livestock and livestock products,
22    dairy products, poultry and poultry products, fish or
23    apiarian products, including slaughter, shearing,
24    collecting, preparation, canning and packaging;
25        (5) fertilizer and agricultural chemical
26    manufacturing, processing, application and supplying;

 

 

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1        (6) farm machinery, equipment and implement
2    manufacturing and supplying;
3        (7) manufacturing and supplying of agricultural
4    commodity processing machinery and equipment, including
5    machinery and equipment used in slaughter, treatment,
6    handling, collecting, preparation, canning or packaging of
7    agricultural commodities;
8        (8) farm building and farm structure manufacturing,
9    construction and supplying;
10        (9) construction, manufacturing, implementation,
11    supplying or servicing of irrigation, drainage and soil
12    and water conservation devices or equipment;
13        (10) fuel processing and development facilities that
14    produce fuel from agricultural commodities or byproducts;
15        (11) facilities and equipment for processing and
16    packaging agricultural commodities specifically for
17    export;
18        (12) facilities and equipment for forestry product
19    processing and supplying, including sawmilling operations,
20    wood chip operations, timber harvesting operations, and
21    manufacturing of prefabricated buildings, paper, furniture
22    or other goods from forestry products;
23        (13) facilities and equipment for research and
24    development of products, processes and equipment for the
25    production, processing, preparation or packaging of
26    agricultural commodities and byproducts.

 

 

10200HB3666sam001- 85 -LRB102 13525 AMC 28481 a

1    (aa) The term "asset" with respect to financing of any
2agricultural facility or any agribusiness, means, but is not
3limited to the following: cash crops or feed on hand;
4livestock held for sale; breeding stock; marketable bonds and
5securities; securities not readily marketable; accounts
6receivable; notes receivable; cash invested in growing crops;
7net cash value of life insurance; machinery and equipment;
8cars and trucks; farm and other real estate including life
9estates and personal residence; value of beneficial interests
10in trusts; government payments or grants; and any other
11assets.
12    (bb) The term "liability" with respect to financing of any
13agricultural facility or any agribusiness shall include, but
14not be limited to the following: accounts payable; notes or
15other indebtedness owed to any source; taxes; rent; amounts
16owed on real estate contracts or real estate mortgages;
17judgments; accrued interest payable; and any other liability.
18    (cc) The term "Predecessor Authorities" means those
19authorities as described in Section 845-75.
20    (dd) The term "housing project" means a specific work or
21improvement located within the State or outside the State and
22undertaken to provide residential dwelling accommodations,
23including the acquisition, construction or rehabilitation of
24lands, buildings and community facilities and in connection
25therewith to provide nonhousing facilities which are part of
26the housing project, including land, buildings, improvements,

 

 

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1equipment and all ancillary facilities for use for offices,
2stores, retirement homes, hotels, financial institutions,
3service, health care, education, recreation or research
4establishments, or any other commercial purpose which are or
5are to be related to a housing development, provided that any
6work or improvement located outside the State is owned,
7operated, leased or managed by an entity located within the
8State, or any entity affiliated with an entity located within
9the State.
10    (ee) The term "conservation project" means any project
11including the acquisition, construction, rehabilitation,
12maintenance, operation, or upgrade that is intended to create
13or expand open space or to reduce energy usage through
14efficiency measures. For the purpose of this definition, "open
15space" has the definition set forth under Section 10 of the
16Illinois Open Land Trust Act.
17    (ff) The term "significant presence" means the existence
18within the State of the national or regional headquarters of
19an entity or group or such other facility of an entity or group
20of entities where a significant amount of the business
21functions are performed for such entity or group of entities.
22    (gg) The term "municipal bond issuer" means the State or
23any other state or commonwealth of the United States, or any
24unit of local government, school district, agency or
25instrumentality, office, department, division, bureau,
26commission, college or university thereof located in the State

 

 

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1or any other state or commonwealth of the United States.
2    (hh) The term "municipal bond program project" means a
3program for the funding of the purchase of bonds, notes or
4other obligations issued by or on behalf of a municipal bond
5issuer.
6    (ii) The term "participating lender" means any trust
7company, bank, savings bank, credit union, merchant bank,
8investment bank, broker, investment trust, pension fund,
9building and loan association, savings and loan association,
10insurance company, venture capital company, or other
11institution approved by the Authority which provides a portion
12of the financing for a project.
13    (jj) The term "loan participation" means any loan in which
14the Authority co-operates with a participating lender to
15provide all or a portion of the financing for a project.
16    (kk) The term "PACE Project" means an energy project as
17defined in Section 5 of the Property Assessed Clean Energy
18Act.
19    (ll) The term "clean energy" means energy generation that
20is substantially free (90% or more) of carbon dioxide
21emissions by design or operations, or that otherwise
22contributes to the reduction in emissions of environmentally
23hazardous materials or reduces the volume of environmentally
24dangerous materials.
25    (mm) The term "clean energy project" means the
26acquisition, construction, refurbishment, creation,

 

 

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1development or redevelopment of any facility, equipment,
2machinery, real property, or personal property for use by the
3State or any unit of local government, school district, agency
4or instrumentality, office, department, division, bureau,
5commission, college, or university of the State, for use by
6any person or institution, public or private, for profit or
7not for profit, or for use in any trade or business, which the
8Authority determines will aid, assist, or encourage the
9development or implementation of clean energy in the State, or
10as otherwise contemplated by Article 850.
11    (nn) The term "Climate Bank" means the Authority in the
12exercise of those powers conferred on it by this Act related to
13clean energy or clean water, drinking water, or wastewater
14treatment.
15    (oo) "equity investment eligible community" and "eligible
16community" mean the geographic areas throughout Illinois that
17would most benefit from equitable investments by the State
18designed to combat discrimination. Specifically, the eligible
19communities shall be defined as the following areas:
20        (1) R3 Areas as established pursuant to Section 10-40
21    of the Cannabis Regulation and Tax Act, where residents
22    have historically been excluded from economic
23    opportunities, including opportunities in the energy
24    sector; and
25        (2) Environmental justice communities, as defined by
26    the Illinois Power Agency pursuant to the Illinois Power

 

 

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1    Agency Act, where residents have historically been subject
2    to disproportionate burdens of pollution, including
3    pollution from the energy sector.
4    (pp) "Equity investment eligible person" and "eligible
5person" mean the persons who would most benefit from equitable
6investments by the State designed to combat discrimination.
7Specifically, eligible persons means the following people:
8        (1) persons whose primary residence is in an equity
9    investment eligible community;
10        (2) persons who are graduates of or currently enrolled
11    in the foster care system; or
12        (3) persons who were formerly incarcerated.
13    (qq) "Environmental justice community" means the
14definition of that term based on existing methodologies and
15findings used and as may be updated by the Illinois Power
16Agency and its program administrator in the Illinois Solar for
17All Program.
18(Source: P.A. 100-919, eff. 8-17-18; 101-610, eff. 1-1-20.)
 
19    (20 ILCS 3501/801-40)
20    Sec. 801-40. In addition to the powers otherwise
21authorized by law and in addition to the foregoing general
22corporate powers, the Authority shall also have the following
23additional specific powers to be exercised in furtherance of
24the purposes of this Act.
25    (a) The Authority shall have power (i) to accept grants,

 

 

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1loans or appropriations from the federal government or the
2State, or any agency or instrumentality thereof, or, in the
3case of clean energy projects, any not-for-profit
4philanthropic or other charitable organization, public or
5private, to be used for the operating expenses of the
6Authority, or for any purposes of the Authority, including the
7making of direct loans of such funds with respect to projects,
8and (ii) to enter into any agreement with the federal
9government or the State, or any agency or instrumentality
10thereof, in relationship to such grants, loans or
11appropriations.
12    (b) The Authority shall have power to procure and enter
13into contracts for any type of insurance and indemnity
14agreements covering loss or damage to property from any cause,
15including loss of use and occupancy, or covering any other
16insurable risk.
17    (c) The Authority shall have the continuing power to issue
18bonds for its corporate purposes. Bonds may be issued by the
19Authority in one or more series and may provide for the payment
20of any interest deemed necessary on such bonds, of the costs of
21issuance of such bonds, of any premium on any insurance, or of
22the cost of any guarantees, letters of credit or other similar
23documents, may provide for the funding of the reserves deemed
24necessary in connection with such bonds, and may provide for
25the refunding or advance refunding of any bonds or for
26accounts deemed necessary in connection with any purpose of

 

 

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1the Authority. The bonds may bear interest payable at any time
2or times and at any rate or rates, notwithstanding any other
3provision of law to the contrary, and such rate or rates may be
4established by an index or formula which may be implemented or
5established by persons appointed or retained therefor by the
6Authority, or may bear no interest or may bear interest
7payable at maturity or upon redemption prior to maturity, may
8bear such date or dates, may be payable at such time or times
9and at such place or places, may mature at any time or times
10not later than 40 years from the date of issuance, may be sold
11at public or private sale at such time or times and at such
12price or prices, may be secured by such pledges, reserves,
13guarantees, letters of credit, insurance contracts or other
14similar credit support or liquidity instruments, may be
15executed in such manner, may be subject to redemption prior to
16maturity, may provide for the registration of the bonds, and
17may be subject to such other terms and conditions all as may be
18provided by the resolution or indenture authorizing the
19issuance of such bonds. The holder or holders of any bonds
20issued by the Authority may bring suits at law or proceedings
21in equity to compel the performance and observance by any
22person or by the Authority or any of its agents or employees of
23any contract or covenant made with the holders of such bonds
24and to compel such person or the Authority and any of its
25agents or employees to perform any duties required to be
26performed for the benefit of the holders of any such bonds by

 

 

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1the provision of the resolution authorizing their issuance,
2and to enjoin such person or the Authority and any of its
3agents or employees from taking any action in conflict with
4any such contract or covenant. Notwithstanding the form and
5tenor of any such bonds and in the absence of any express
6recital on the face thereof that it is non-negotiable, all
7such bonds shall be negotiable instruments. Pending the
8preparation and execution of any such bonds, temporary bonds
9may be issued as provided by the resolution. The bonds shall be
10sold by the Authority in such manner as it shall determine. The
11bonds may be secured as provided in the authorizing resolution
12by the receipts, revenues, income and other available funds of
13the Authority and by any amounts derived by the Authority from
14the loan agreement or lease agreement with respect to the
15project or projects; and bonds may be issued as general
16obligations of the Authority payable from such revenues, funds
17and obligations of the Authority as the bond resolution shall
18provide, or may be issued as limited obligations with a claim
19for payment solely from such revenues, funds and obligations
20as the bond resolution shall provide. The Authority may grant
21a specific pledge or assignment of and lien on or security
22interest in such rights, revenues, income, or amounts and may
23grant a specific pledge or assignment of and lien on or
24security interest in any reserves, funds or accounts
25established in the resolution authorizing the issuance of
26bonds. Any such pledge, assignment, lien or security interest

 

 

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1for the benefit of the holders of the Authority's bonds shall
2be valid and binding from the time the bonds are issued without
3any physical delivery or further act, and shall be valid and
4binding as against and prior to the claims of all other parties
5having claims against the Authority or any other person
6irrespective of whether the other parties have notice of the
7pledge, assignment, lien or security interest. As evidence of
8such pledge, assignment, lien and security interest, the
9Authority may execute and deliver a mortgage, trust agreement,
10indenture or security agreement or an assignment thereof. A
11remedy for any breach or default of the terms of any such
12agreement by the Authority may be by mandamus proceedings in
13any court of competent jurisdiction to compel the performance
14and compliance therewith, but the agreement may prescribe by
15whom or on whose behalf such action may be instituted. It is
16expressly understood that the Authority may, but need not,
17acquire title to any project with respect to which it
18exercises its authority.
19    (d) With respect to the powers granted by this Act, the
20Authority may adopt rules and regulations prescribing the
21procedures by which persons may apply for assistance under
22this Act. Nothing herein shall be deemed to preclude the
23Authority, prior to the filing of any formal application, from
24conducting preliminary discussions and investigations with
25respect to the subject matter of any prospective application.
26    (e) The Authority shall have power to acquire by purchase,

 

 

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1lease, gift or otherwise any property or rights therein from
2any person useful for its purposes, whether improved for the
3purposes of any prospective project, or unimproved. The
4Authority may also accept any donation of funds for its
5purposes from any such source. The Authority shall have no
6independent power of condemnation but may acquire any property
7or rights therein obtained upon condemnation by any other
8authority, governmental entity or unit of local government
9with such power.
10    (f) The Authority shall have power to develop, construct
11and improve either under its own direction, or through
12collaboration with any approved applicant, or to acquire
13through purchase or otherwise, any project, using for such
14purpose the proceeds derived from the sale of its bonds or from
15governmental loans or grants, and to hold title in the name of
16the Authority to such projects.
17    (g) The Authority shall have power to lease pursuant to a
18lease agreement any project so developed and constructed or
19acquired to the approved tenant on such terms and conditions
20as may be appropriate to further the purposes of this Act and
21to maintain the credit of the Authority. Any such lease may
22provide for either the Authority or the approved tenant to
23assume initially, in whole or in part, the costs of
24maintenance, repair and improvements during the leasehold
25period. In no case, however, shall the total rentals from any
26project during any initial leasehold period or the total loan

 

 

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1repayments to be made pursuant to any loan agreement, be less
2than an amount necessary to return over such lease or loan
3period (1) all costs incurred in connection with the
4development, construction, acquisition or improvement of the
5project and for repair, maintenance and improvements thereto
6during the period of the lease or loan; provided, however,
7that the rentals or loan repayments need not include costs met
8through the use of funds other than those obtained by the
9Authority through the issuance of its bonds or governmental
10loans; (2) a reasonable percentage additive to be agreed upon
11by the Authority and the borrower or tenant to cover a properly
12allocable portion of the Authority's general expenses,
13including, but not limited to, administrative expenses,
14salaries and general insurance, and (3) an amount sufficient
15to pay when due all principal of, interest and premium, if any
16on, any bonds issued by the Authority with respect to the
17project. The portion of total rentals payable under clause (3)
18of this subsection (g) shall be deposited in such special
19accounts, including all sinking funds, acquisition or
20construction funds, debt service and other funds as provided
21by any resolution, mortgage or trust agreement of the
22Authority pursuant to which any bond is issued.
23    (h) The Authority has the power, upon the termination of
24any leasehold period of any project, to sell or lease for a
25further term or terms such project on such terms and
26conditions as the Authority shall deem reasonable and

 

 

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1consistent with the purposes of the Act. The net proceeds from
2all such sales and the revenues or income from such leases
3shall be used to satisfy any indebtedness of the Authority
4with respect to such project and any balance may be used to pay
5any expenses of the Authority or be used for the further
6development, construction, acquisition or improvement of
7projects. In the event any project is vacated by a tenant prior
8to the termination of the initial leasehold period, the
9Authority shall sell or lease the facilities of the project on
10the most advantageous terms available. The net proceeds of any
11such disposition shall be treated in the same manner as the
12proceeds from sales or the revenues or income from leases
13subsequent to the termination of any initial leasehold period.
14    (i) The Authority shall have the power to make loans, or to
15purchase loan participations in loans made, to persons to
16finance a project, to enter into loan agreements or agreements
17with participating lenders with respect thereto, and to accept
18guarantees from persons of its loans or the resultant
19evidences of obligations of the Authority.
20    (j) The Authority may fix, determine, charge and collect
21any premiums, fees, charges, costs and expenses, including,
22without limitation, any application fees, commitment fees,
23program fees, financing charges or publication fees from any
24person in connection with its activities under this Act.
25    (k) In addition to the funds established as provided
26herein, the Authority shall have the power to create and

 

 

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1establish such reserve funds and accounts as may be necessary
2or desirable to accomplish its purposes under this Act and to
3deposit its available monies into the funds and accounts.
4    (l) At the request of the governing body of any unit of
5local government, the Authority is authorized to market such
6local government's revenue bond offerings by preparing bond
7issues for sale, advertising for sealed bids, receiving bids
8at its offices, making the award to the bidder that offers the
9most favorable terms or arranging for negotiated placements or
10underwritings of such securities. The Authority may, at its
11discretion, offer for concurrent sale the revenue bonds of
12several local governments. Sales by the Authority of revenue
13bonds under this Section shall in no way imply State guarantee
14of such debt issue. The Authority may require such financial
15information from participating local governments as it deems
16necessary in order to carry out the purposes of this
17subsection (1).
18    (m) The Authority may make grants to any county to which
19Division 5-37 of the Counties Code is applicable to assist in
20the financing of capital development, construction and
21renovation of new or existing facilities for hospitals and
22health care facilities under that Act. Such grants may only be
23made from funds appropriated for such purposes from the Build
24Illinois Bond Fund.
25    (n) The Authority may establish an urban development
26action grant program for the purpose of assisting

 

 

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1municipalities in Illinois which are experiencing severe
2economic distress to help stimulate economic development
3activities needed to aid in economic recovery. The Authority
4shall determine the types of activities and projects for which
5the urban development action grants may be used, provided that
6such projects and activities are broadly defined to include
7all reasonable projects and activities the primary objectives
8of which are the development of viable urban communities,
9including decent housing and a suitable living environment,
10and expansion of economic opportunity, principally for persons
11of low and moderate incomes. The Authority shall enter into
12grant agreements from monies appropriated for such purposes
13from the Build Illinois Bond Fund. The Authority shall monitor
14the use of the grants, and shall provide for audits of the
15funds as well as recovery by the Authority of any funds
16determined to have been spent in violation of this subsection
17(n) or any rule or regulation promulgated hereunder. The
18Authority shall provide technical assistance with regard to
19the effective use of the urban development action grants. The
20Authority shall file an annual report to the General Assembly
21concerning the progress of the grant program.
22    (o) The Authority may establish a Housing Partnership
23Program whereby the Authority provides zero-interest loans to
24municipalities for the purpose of assisting in the financing
25of projects for the rehabilitation of affordable multi-family
26housing for low and moderate income residents. The Authority

 

 

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1may provide such loans only upon a municipality's providing
2evidence that it has obtained private funding for the
3rehabilitation project. The Authority shall provide 3 State
4dollars for every 7 dollars obtained by the municipality from
5sources other than the State of Illinois. The loans shall be
6made from monies appropriated for such purpose from the Build
7Illinois Bond Fund. The total amount of loans available under
8the Housing Partnership Program shall not exceed $30,000,000.
9State loan monies under this subsection shall be used only for
10the acquisition and rehabilitation of existing buildings
11containing 4 or more dwelling units. The terms of any loan made
12by the municipality under this subsection shall require
13repayment of the loan to the municipality upon any sale or
14other transfer of the project. In addition, the Authority may
15use any moneys appropriated for such purpose from the Build
16Illinois Bond Fund, including funds loaned under this
17subsection and repaid as principal or interest, and investment
18income on such funds, to make the loans authorized by
19subsection (z), without regard to any restrictions or
20limitations provided in this subsection.
21    (p) The Authority may award grants to universities and
22research institutions, research consortiums and other
23not-for-profit entities for the purposes of: remodeling or
24otherwise physically altering existing laboratory or research
25facilities, expansion or physical additions to existing
26laboratory or research facilities, construction of new

 

 

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1laboratory or research facilities or acquisition of modern
2equipment to support laboratory or research operations
3provided that such grants (i) be used solely in support of
4project and equipment acquisitions which enhance technology
5transfer, and (ii) not constitute more than 60 percent of the
6total project or acquisition cost.
7    (q) Grants may be awarded by the Authority to units of
8local government for the purpose of developing the appropriate
9infrastructure or defraying other costs to the local
10government in support of laboratory or research facilities
11provided that such grants may not exceed 40% of the cost to the
12unit of local government.
13    (r) In addition to the powers granted to the Authority
14under subsection (i), and in all cases supplemental to it, the
15Authority may establish a direct loan program to make loans
16to, or may purchase participations in loans made by
17participating lenders to, individuals, partnerships,
18corporations, or other business entities for the purpose of
19financing an industrial project, as defined in Section 801-10
20of this Act. For the purposes of such program and not by way of
21limitation on any other program of the Authority, including,
22without limitation, programs established under subsection (i),
23the Authority shall have the power to issue bonds, notes, or
24other evidences of indebtedness including commercial paper for
25purposes of providing a fund of capital from which it may make
26such loans. The Authority shall have the power to use any

 

 

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1appropriations from the State made especially for the
2Authority's direct loan program, or moneys at any time held by
3the Authority under this Act outside the State treasury in the
4custody of either the Treasurer of the Authority or a trustee
5or depository appointed by the Authority, for additional
6capital to make such loans or purchase such loan
7participations, or for the purposes of reserve funds or
8pledged funds which secure the Authority's obligations of
9repayment of any bond, note or other form of indebtedness
10established for the purpose of providing capital for which it
11intends to make such loans or purchase such loan
12participations. For the purpose of obtaining such capital, the
13Authority may also enter into agreements with financial
14institutions, participating lenders, and other persons for the
15purpose of administering a loan participation program, selling
16loans or developing a secondary market for such loans or loan
17participations. Loans made under the direct loan program
18specifically established under this subsection (r), including
19loans under such program made by participating lenders in
20which the Authority purchases a participation, may be in an
21amount not to exceed $600,000 and shall be made for a portion
22of an industrial project which does not exceed 50% of the total
23project. No loan may be made by the Authority unless approved
24by the affirmative vote of at least 8 members of the board. The
25Authority shall establish procedures and publish rules which
26shall provide for the submission, review, and analysis of each

 

 

10200HB3666sam001- 102 -LRB102 13525 AMC 28481 a

1direct loan and loan participation application and which shall
2preserve the ability of each board member and the Executive
3Director, as applicable, to reach an individual business
4judgment regarding the propriety of each direct loan or loan
5participation. The collective discretion of the board to
6approve or disapprove each loan shall be unencumbered. The
7Authority may establish and collect such fees and charges,
8determine and enforce such terms and conditions, and charge
9such interest rates as it determines to be necessary and
10appropriate to the successful administration of the direct
11loan program, including purchasing loan participations. The
12Authority may require such interests in collateral and such
13guarantees as it determines are necessary to protect the
14Authority's interest in the repayment of the principal and
15interest of each loan and loan participation made under the
16direct loan program. The restrictions established under this
17subsection (r) shall not be applicable to any loan or loan
18participation made under subsection (i) or to any loan or loan
19participation made under any other Section of this Act.
20    (s) The Authority may guarantee private loans to third
21parties up to a specified dollar amount in order to promote
22economic development in this State.
23    (t) The Authority may adopt rules and regulations as may
24be necessary or advisable to implement the powers conferred by
25this Act.
26    (u) The Authority shall have the power to issue bonds,

 

 

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1notes or other evidences of indebtedness, which may be used to
2make loans to units of local government which are authorized
3to enter into loan agreements and other documents and to issue
4bonds, notes and other evidences of indebtedness for the
5purpose of financing the protection of storm sewer outfalls,
6the construction of adequate storm sewer outfalls, and the
7provision for flood protection of sanitary sewage treatment
8plans, in counties that have established a stormwater
9management planning committee in accordance with Section
105-1062 of the Counties Code. Any such loan shall be made by the
11Authority pursuant to the provisions of Section 820-5 to
12820-60 of this Act. The unit of local government shall pay back
13to the Authority the principal amount of the loan, plus annual
14interest as determined by the Authority. The Authority shall
15have the power, subject to appropriations by the General
16Assembly, to subsidize or buy down a portion of the interest on
17such loans, up to 4% per annum.
18    (v) The Authority may accept security interests as
19provided in Sections 11-3 and 11-3.3 of the Illinois Public
20Aid Code.
21    (w) Moral Obligation. In the event that the Authority
22determines that monies of the Authority will not be sufficient
23for the payment of the principal of and interest on its bonds
24during the next State fiscal year, the Chairperson, as soon as
25practicable, shall certify to the Governor the amount required
26by the Authority to enable it to pay such principal of and

 

 

10200HB3666sam001- 104 -LRB102 13525 AMC 28481 a

1interest on the bonds. The Governor shall submit the amount so
2certified to the General Assembly as soon as practicable, but
3no later than the end of the current State fiscal year. This
4subsection shall apply only to any bonds or notes as to which
5the Authority shall have determined, in the resolution
6authorizing the issuance of the bonds or notes, that this
7subsection shall apply. Whenever the Authority makes such a
8determination, that fact shall be plainly stated on the face
9of the bonds or notes and that fact shall also be reported to
10the Governor. In the event of a withdrawal of moneys from a
11reserve fund established with respect to any issue or issues
12of bonds of the Authority to pay principal or interest on those
13bonds, the Chairperson of the Authority, as soon as
14practicable, shall certify to the Governor the amount required
15to restore the reserve fund to the level required in the
16resolution or indenture securing those bonds. The Governor
17shall submit the amount so certified to the General Assembly
18as soon as practicable, but no later than the end of the
19current State fiscal year. The Authority shall obtain written
20approval from the Governor for any bonds and notes to be issued
21under this Section. In addition to any other bonds authorized
22to be issued under Sections 825-60, 825-65(e), 830-25 and
23845-5, the principal amount of Authority bonds outstanding
24issued under this Section 801-40(w) or under 20 ILCS 3850/1-80
25or 30 ILCS 360/2-6(c), which have been assumed by the
26Authority, shall not exceed $150,000,000. This subsection (w)

 

 

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1shall in no way be applied to any bonds issued by the Authority
2on behalf of the Illinois Power Agency under Section 825-90 of
3this Act.
4    (x) The Authority may enter into agreements or contracts
5with any person necessary or appropriate to place the payment
6obligations of the Authority under any of its bonds in whole or
7in part on any interest rate basis, cash flow basis, or other
8basis desired by the Authority, including without limitation
9agreements or contracts commonly known as "interest rate swap
10agreements", "forward payment conversion agreements", and
11"futures", or agreements or contracts to exchange cash flows
12or a series of payments, or agreements or contracts, including
13without limitation agreements or contracts commonly known as
14"options", "puts", or "calls", to hedge payment, rate spread,
15or similar exposure; provided that any such agreement or
16contract shall not constitute an obligation for borrowed money
17and shall not be taken into account under Section 845-5 of this
18Act or any other debt limit of the Authority or the State of
19Illinois.
20    (y) The Authority shall publish summaries of projects and
21actions approved by the members of the Authority on its
22website. These summaries shall include, but not be limited to,
23information regarding the:
24        (1) project;
25        (2) Board's action or actions;
26        (3) purpose of the project;

 

 

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1        (4) Authority's program and contribution;
2        (5) volume cap;
3        (6) jobs retained;
4        (7) projected new jobs;
5        (8) construction jobs created;
6        (9) estimated sources and uses of funds;
7        (10) financing summary;
8        (11) project summary;
9        (12) business summary;
10        (13) ownership or economic disclosure statement;
11        (14) professional and financial information;
12        (15) service area; and
13        (16) legislative district.
14    The disclosure of information pursuant to this subsection
15shall comply with the Freedom of Information Act.
16    (z) Consistent with the findings and declaration of policy
17set forth in item (j) of Section 801-5 of this Act, the
18Authority shall have the power to make loans to the Police
19Officers' Pension Investment Fund authorized by Section
2022B-120 of the Illinois Pension Code and to make loans to the
21Firefighters' Pension Investment Fund authorized by Section
2222C-120 of the Illinois Pension Code. Notwithstanding anything
23in this Act to the contrary, loans authorized by Section
2422B-120 and Section 22C-120 of the Illinois Pension Code may
25be made from any of the Authority's funds, including, but not
26limited to, funds in its Illinois Housing Partnership Program

 

 

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1Fund, its Industrial Project Insurance Fund, or its Illinois
2Venture Investment Fund.
3(Source: P.A. 100-919, eff. 8-17-18; 101-610, eff. 1-1-20.)
 
4    (20 ILCS 3501/Art. 850 heading new)
5
ARTICLE 850
6
GENERAL PROVISIONS

 
7    (20 ILCS 3501/850-5 new)
8    Sec. 850-5. Climate Bank. The General Assembly designates
9the Authority as the Climate Bank to aid in all respects with
10providing financial assistance, programs, and products to
11finance and otherwise develop and facilitate opportunities to
12develop clean energy and provide clean water, drinking water,
13and wastewater treatment in the State. Nothing in this Section
14shall be deemed to supersede powers and regulatory duties
15conferred to other State agencies or governmental units.
 
16    (20 ILCS 3501/850-10 new)
17    Sec. 850-10. Powers and duties.
18    (a) The Authority shall have the powers enumerated in this
19Act to assist in the development and implementation of clean
20energy in the State. The powers enumerated in this Article
21shall be in addition to all other powers of the Authority
22conferred in this Act, including those related to clean energy
23and the provision of clean water, drinking water, and

 

 

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1wastewater treatment. The powers of the Authority to issue
2bonds, notes, and other obligations to finance loans
3administered by the Illinois Environmental Protection Agency
4under the Public Water Supply Loan Program or the Water
5Pollution Control Loan Program or other similar programs shall
6not be limited or otherwise affected by this amendatory Act of
7the 102nd General Assembly.
8    (b) In its role as the Climate Bank of the State, the
9Authority shall have the power to: (i) administer programs and
10funds appropriated by the General Assembly for clean energy
11projects in eligible communities and environmental justice
12communities or owned by eligible persons, (ii) support
13investment in the clean energy and clean water, drinking
14water, and wastewater treatment, (iii) support and otherwise
15promote investment in clean energy projects to foster the
16growth, development, and commercialization of clean energy
17projects and related enterprises, and (iv) stimulate demand
18for clean energy and the development of clean energy projects.
19    (c) In addition to, and not in limitation of, any other
20power of the Authority set forth in this Section or any other
21provisions of the general statutes, the Authority shall have
22and may exercise the following powers in furtherance of or in
23carrying out its clean energy powers and purposes:
24        (1) To enter into joint ventures and invest in and
25    participate with any person, including, without
26    limitation, government entities and private corporations,

 

 

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1    engaged primarily in the development of clean energy
2    projects, provided that members of the Authority or
3    officers may serve as directors, members, or officers of
4    any such business entity, and such service shall be deemed
5    to be in the discharge of the duties or within the scope of
6    the employment of any such member or officer, or Authority
7    or officers, as the case may be, so long as such member or
8    officer does not receive any compensation or direct or
9    indirect financial benefit as a result of serving in such
10    role.
11        (2) To utilize funding sources, including, but not
12    limited to:
13            (A) funds repurposed from existing programs
14        providing financing support for clean energy projects,
15        provided any transfer of funds from such existing
16        programs shall be subject to approval by the General
17        Assembly and shall be used for expenses of financing,
18        grants, and loans;
19            (B) any federal funds that can be used for clean
20        energy purposes;
21            (C) charitable gifts, grants, and contributions as
22        well as loans from individuals, corporations,
23        university endowment funds, and philanthropic
24        foundations for clean energy projects or for the
25        provision of clean water, drinking water, and
26        wastewater treatment; and

 

 

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1            (D) earnings and interest derived from financing
2        support activities for clean energy projects financed
3        by the Authority.
4        (3) To enter into contracts with private sources to
5    raise capital.
6    (d) The Authority may finance working capital, refinance
7outstanding indebtedness of any person, and otherwise assist
8in the investment of equity from any source, public or
9private, in connection with clean energy projects or any other
10projects authorized by this Act.
11    (e) The Authority may assess reasonable fees on its
12financing activities to cover its reasonable costs and
13expenses, as determined by the Authority.
14    (f) The Authority shall make information regarding the
15rates, terms and conditions for all of its financing support
16transactions available to the public for inspection, including
17formal annual reviews by both a private auditor and the
18Comptroller, and providing details to the public on the
19Internet, provided public disclosure shall be restricted for
20patentable ideas, trade secrets, and proprietary or
21confidential commercial or financial information, disclosure
22of which may cause commercial harm to a nongovernmental
23recipient of such financing support and for other information
24exempt from public records disclosure pursuant to Section
251-210.
 

 

 

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1    (20 ILCS 3501/850-15 new)
2    Sec. 850-15. Purposes; Climate Bank. In its role as the
3Climate Bank for the State, the Authority shall consider the
4following purposes:
5        (1) the distribution of the benefits of clean energy
6    in an equitable manner, including by evaluating benefits
7    to eligible communities and equity investment eligible
8    persons;
9        (2) making clean energy accessible to all, especially
10    eligible persons, through financing opportunities and
11    grants for minority-owned businesses, as defined in the
12    Business Enterprise for Minorities, Women, and Persons
13    with Disabilities Act, and for low-income communities,
14    eligible communities, environmental justice communities,
15    and the businesses that serve these communities; and
16        (3) accelerating the investment of private capital
17    into clean energy projects in a manner reflective of the
18    geographic, racial, ethnic, gender, and income-level
19    diversity of the State.
 
20
Article 10. Energy Community Reinvestment Act

 
21    Section 10-1. Short title. This Article may be cited as
22the Energy Community Reinvestment Act. References in this
23Article to "this Act" mean this Article.
 

 

 

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1    Section 10-5. Findings. The General Assembly finds that,
2as part of putting Illinois on a path to 100% renewable energy,
3the State of Illinois should ensure a just transition to that
4goal, providing support for the transition of Illinois'
5communities and workers impacted by closures or reduced use of
6fossil fuel power plants, nuclear power plants, or coal mines
7by allocating new economic development resources for business
8tax incentives, workforce training, site clean-up and reuse,
9and local tax revenue replacement.
10    The General Assembly finds and declares that the health,
11safety, and welfare of the people of this State are dependent
12upon a healthy economy and vibrant communities; that the
13closure of fossil fuel power plants, nuclear power plants, and
14coal mines across this State have a significant impact on
15their surrounding communities; that the expansion of renewable
16energy creates job growth and contributes to the health,
17safety, and welfare of the people of this State; that the
18continual encouragement, development, growth, and expansion of
19renewable energy within this State requires a cooperative and
20continuous partnership between government and the renewable
21energy sector; and that there are certain areas in this State
22that have lost, or will lose, jobs due to the closure of fossil
23fuel power plants, nuclear power plants, and coal mines and
24need the particular attention of government, labor, and the
25residents of Illinois to help attract new investment into
26these areas and directly aid the local community and its

 

 

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1residents.
2    Therefore, it is declared to be the purpose of this Act to
3explore ways of stimulating the growth of new private
4investment, including renewable energy investment, in this
5State and to foster job growth in areas impacted by the closure
6of coal energy plants, coal mines, and nuclear energy plants.
 
7    Section 10-10. Definitions. As used in this Act, unless
8the context otherwise requires:
9    "Agencies" or "State agencies" has the same meaning as
10"State agencies" under Section 1-7 of the Illinois State
11Auditing Act.
12    "Commission" means the Energy Transition Workforce
13Commission created in Section 10-15.
14    "Department" means the Department of Commerce and Economic
15Opportunity.
16    "Displaced energy worker" means an energy worker who has
17lost employment, or is anticipated by the Department to lose
18employment within the next 5 years, due to the reduced
19operation or closure of a fossil fuel power plant, nuclear
20power plant, or coal mine.
21    "Energy worker" means a person who has been employed
22full-time for a period of one year or longer, and within the
23previous 5 years, at a fossil fuel power plant, a nuclear power
24plant, or a coal mine located within the State of Illinois,
25whether or not they are employed by the owner of the power

 

 

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1plant or mine. Energy workers are considered to be full-time
2if they work at least 35 hours per week for 45 weeks a year or
3the 1,820 work-hour equivalent with vacations, paid holidays,
4and sick time, but not overtime, included in this computation.
5Classification of an individual as an energy worker continues
6for 5 years from the latest date of employment or the effective
7date of this Act, whichever is later.
8    "Environmental justice communities" shall have the meaning
9set forth in Section 1-56 of the Illinois Power Agency Act and
10the most recent Commission-approved long-term renewable
11resources procurement plan of the Illinois Power Agency.
12    "Fossil fuel power plant" means an electric generating
13facility powered by gas, coal, other fossil fuels, or a
14combination thereof.
15    "Local labor market area" means an economically integrated
16area within which individuals reside and find employment
17within a reasonable distance of their places of residence or
18can readily change jobs without changing their places of
19residence.
20    "Low-income" means persons and families whose income does
21not exceed 80% of area median income, adjusted for family size
22and revised every 2 years.
23    "Renewable energy enterprise" means a company that is
24engaged in the production, manufacturing, distribution, or
25development of renewable energy resources and associated
26technologies.

 

 

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1    "Renewable energy project" means a project conducted by a
2renewable energy enterprise for the purpose of generating
3renewable energy resources or energy storage.
4    "Renewable energy resources" has the meaning set forth in
5Section 1-10 of the Illinois Power Agency Act.
6    "Rule" has the meaning set forth in Section 1-70 of the
7Illinois Administrative Procedure Act.
 
8    Section 10-15. Energy Transition Workforce Commission.
9    (a) The Energy Transition Workforce Commission is hereby
10created within the Department of Commerce and Economic
11Opportunity.
12    (b) The Commission shall consist of the following members:
13        (1) the Director of Commerce and Economic Opportunity;
14        (2) the Director of Labor, or his or her designee, who
15    shall serve as chairperson;
16        (3) 5 members appointed by the Governor, with the
17    advice and consent of the Senate, of which at least one
18    shall be a representative of a local labor organization,
19    at least one shall be a resident of an environmental
20    justice community, at least one shall be a representative
21    of a national labor organization, and at least one shall
22    be a representative of the administrator of workforce
23    training programs created by this Act. Designees shall be
24    appointed within 60 days after a vacancy; and
25        (4) the 3 Regional Administrators selected under

 

 

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1    Section 5-15 of the Energy Transition Act.
2    (c) Members of the Commission shall serve without
3compensation, but may be reimbursed for necessary expenses
4incurred in the performance of their duties from funds
5appropriated for that purpose. The Department of Commerce and
6Economic Opportunity shall provide administrative support to
7the Commission.
8    (d) Within 240 days after the effective date of this Act,
9the Commission shall produce an Energy Transition Workforce
10Report regarding the anticipated impact of the energy
11transition and a comprehensive set of recommendations to
12address changes to the Illinois workforce during the period of
132020 through 2050, or a later year. The report shall contain
14the following elements, designed to be used for the programs
15created in this Act:
16        (1) Information related to the impact on current
17    workers, including:
18            (A) a comprehensive accounting of all employees
19        who currently work in fossil fuel energy generation,
20        nuclear energy generation, and coal mining in the
21        State; upon receipt of the employee's written
22        authorization for the employer's release of such
23        information to the Commission, this shall include
24        information on their location, employer, salary
25        ranges, full-time or part-time status, nature of their
26        work, educational attainment, union status, and other

 

 

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1        factors the Commission finds relevant;
2            (B) the anticipated schedule of closures of fossil
3        fuel power plants, nuclear power plants, and coal
4        mines across the State; when information is
5        unavailable to provide exact data, the report shall
6        include approximations based upon the best available
7        information;
8            (C) an estimate of worker impacts due to scheduled
9        closures, including layoffs, early retirements, salary
10        changes, and other factors the Commission finds
11        relevant; and
12            (D) the likely outcome for workers who are
13        employed by facilities that are anticipated to close
14        or have significant layoffs during their tenure or
15        lifetime.
16        (2) Information regarding impact on communities and
17    local governments, including:
18            (A) changes in the revenue for units of local
19        government in areas that currently or recently have
20        had a closure or reduction in operation of a fossil
21        fuel power plant, nuclear power plant, coal mine, or
22        related industry;
23            (B) environmental impacts in areas that currently
24        or recently have had fossil fuel power plants, coal
25        mines, nuclear power plants, or related industry; and
26            (C) economic impacts of the energy transition,

 

 

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1        including, but not limited to, the supply chain
2        impacts of the energy transition shift toward new
3        energy sources across the State.
4        (3) Information on emerging industries and State
5    economic development opportunities in regions that have
6    historically been the site of fossil fuel power plants,
7    nuclear power plants, or coal mining.
8    (e) Following the completion of each report, or if the
9Department finds that it is prudent to begin before the
10completion of a report, the Department shall coordinate with
11the Commission to create a comprehensive draft plan for
12designing, maintaining, and funding programs established under
13this Act, including the Displaced Energy Workers Bill of
14Rights provided under Section 10-25. The draft plan shall
15include, at a minimum, the following information:
16        (1) A detailed accounting of the anticipated costs for
17    each program and the anticipated amount of funding that
18    will be provided for each program.
19        (2) Information on the locations at which each program
20    shall have services provided; if this information is not
21    yet known by the Department at the time of the plan's
22    drafting, the Department shall generally explain how they
23    intend to determine the program locations. Within 240 days
24    after the effective date of this Act, the Department shall
25    publish the draft plan online. The Department shall take
26    public comments on the draft plan for a period of no less

 

 

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1    than 45 days and publish the final plan within 60 days
2    after the closing of the comment period.
3    (f) The Department shall periodically review its findings
4in the developed reports and make modifications to the report
5and programs based on new findings. The Department shall
6conduct a comprehensive reevaluation of the report, and
7publish a modified version, on each of the following years
8following initial publication: 2023; 2027; 2030; 2035; 2040;
9and any year thereafter which the Department determines is
10necessary or prudent.
 
11    Section 10-20. Energy Transition Community Grants.
12    (a) Subject to appropriation, the Department shall
13establish an Energy Transition Community Grant Program to
14award grants to promote economic development in eligible
15communities.
16    (b) Funds shall be made available from the Energy
17Transition Assistance Fund to the Department to provide these
18grants.
19    (c) Communities eligible to receive these grants must meet
20one or more of the following:
21        (1) the area contains a fossil fuel or nuclear power
22    plant that was retired from service or has significantly
23    reduced service within 10 years before the application for
24    designation or will be retired or have service
25    significantly reduced within 10 years following the

 

 

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1    application for designation;
2        (2) the area contains a coal mine that was closed or
3    had operations significantly reduced within 10 years
4    before the application for designation or is anticipated
5    to be closed or have operations significantly reduced
6    within 10 years following the application for designation;
7    or
8        (3) the area contains a nuclear power plant that was
9    decommissioned, but continued storing nuclear waste before
10    the effective date of this Act.
11    (d) Local units of governments in eligible areas may join
12with any other local unit of government, economic development
13organization, local educational institutions, community-based
14groups, or with any number or combination thereof to apply for
15the Energy Transition Community Grant.
16    (e) To receive grant funds, an eligible community must
17submit an application to the Department, using a form
18developed by the Department.
19    (f) For grants awarded to counties or other entities that
20are not the city that hosts or has hosted the investor-owned
21electric generating plant, a resolution of support for the
22project from the city or cities that hosts or has hosted the
23investor-owned electric generating plant is required to be
24submitted with the application.
25    (g) Grants must be used to plan for or address the economic
26and social impact on the community or region of plant

 

 

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1retirement or transition.
2    (h) Project applications should include community input
3and consultation with a diverse set of stakeholders,
4including, but not limited to: Regional Planning Councils,
5where applicable; economic development organizations;
6low-income or environmental justice communities; educational
7institutions; elected and appointed officials; organizations
8representing workers; and other relevant organizations.
9    (i) Grant costs are authorized to procure third-party
10vendors for grant writing and implementation costs, including
11for guidance and opportunities to apply for additional
12federal, State, local, and private funding resources. If the
13application is approved for pre-award, one-time reimbursable
14costs to apply for the Energy Transition Community Grant are
15authorized up to 3% of the award.
 
16    Section 10-25. Displaced Energy Workers Bill of Rights.
17    (a) The Department, in collaboration with the Department
18of Employment Security, shall have the authority to implement
19the Displaced Energy Workers Bill of Rights, and shall be
20responsible for the implementation of the Displaced Energy
21Workers Bill of Rights programs and rights created under this
22Section. The Department shall provide the following benefits
23to displaced energy workers listed in paragraphs (1) through
24(4) of this subsection:
25        (1) Advance notice of power plant or coal mine

 

 

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1    closure.
2            (A) The Department shall notify all energy workers
3        of the upcoming closure of any qualifying facility as
4        far in advance of the scheduled closing date as it can.
5        The Department shall engage the employer and energy
6        workers no later than within 30 days of a closure or
7        deactivation notice being filed by the plant owner to
8        the Regional Transmission Organization of
9        jurisdiction, within 30 days of the announced closure
10        of a coal mine, within 30 days of a WARN notice being
11        filed with the Department, or within 30 days of an
12        announcement or requirement of cessation of operations
13        of a plant or mine from another authoritative source,
14        whichever is first.
15            (B) In providing the advance notice described in
16        this paragraph (1), the Department shall take
17        reasonable steps to ensure that all displaced energy
18        workers are educated on the various programs available
19        through the Department to assist with the energy
20        transition.
21        (2) Education on programs. The Department shall take
22    reasonable steps to ensure that all displaced energy
23    workers are educated on the various programs available
24    through the Department to assist with the energy
25    transition, including, but not limited to, the Illinois
26    Dislocated Worker and Rapid Response programs. The

 

 

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1    Department will develop an outreach strategy, workforce
2    toolkit and quick action plan to deploy when closures are
3    announced. This strategy will include identifying any
4    additional resources that may be needed to aid worker
5    transitions that would require contracting services.
6        (3) Employment assistance and career services. The
7    Department shall provide displaced energy workers with
8    assistance in finding new sources of employment through
9    the Energy Workforce Development Program established in
10    this Act. The Department shall provide information and
11    consultation to displaced energy workers on various
12    employment and educational opportunities available to
13    them, supportive services, and advise workers on which
14    opportunities meet their skills, needs, and preferences.
15            (A) Available services will include reemployment
16        services, training services, work-based learning
17        services, and financial and retirement planning
18        support.
19            (B) The Department will provide skills matching as
20        part of career counseling services to enable
21        assessment of the displaced energy worker's skills and
22        map those skills to emerging occupations in the region
23        or nationally, or both, depending on the displaced
24        worker's preferences.
25            (C) For energy workers who may be interested in
26        entrepreneurial pursuits, the Department will connect

 

 

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1        these individuals with their area Small Business
2        Development Center, procurement technical assistance
3        centers, and economic development organization to
4        engage in services, including, but not limited to,
5        business consulting, business planning, regulatory
6        compliance, marketing, training, accessing capital,
7        and government bid certification assistance.
8        (4) Financial planning services. Displaced energy
9    workers shall be entitled to services as described in the
10    energy worker programs in this subsection, including
11    financial planning services.
12        (5) Insurance alternatives. Displaced energy workers
13    may purchase health insurance plans from Illinois Health
14    Benefits Exchanges which offer a similar level of
15    benefits, including, but not limited to, coverage,
16    in-network providers, deductibles, and copayments covered
17    during the previous 12 months of their employment.
18    (b) Plant owners and the owners of coal mines located in
19Illinois shall be required to comply with the requirements set
20out in this subsection (b). The owners shall be required to
21take the following actions:
22        (1) Provide written notice of deactivation or closure
23    filing with the Regional Transmission Organization of
24    jurisdiction to the Department within 48 hours, if
25    applicable.
26        (2) Provide employment information for energy workers;

 

 

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1    90 days prior to the closure of an electric generating
2    unit or mine, the owners of the power plant or mine shall
3    provide energy workers information on whether there are
4    employment opportunities provided by their employer.
5        (3) Annually report to the Department on announced
6    closures of qualifying facilities. The report must include
7    information on expected closure date, number of employees,
8    planning processes, services offered for employees (such
9    as training opportunities) leading up to the closure,
10    efforts made to retain employees through other employment
11    opportunities within the company, and any other
12    information that the Department requires in order to
13    implement this Section.
14        (4) Ninety days prior to closure date, provide a final
15    closure report to the Department that includes expected
16    closure date, number of employees and salaries, transition
17    support the company is providing to employee and
18    timelines, including assistance for training
19    opportunities, transportation support or child care
20    resources to attend training, career counseling, resume
21    support, and others. The closure report will be made
22    available to the chief elected official of each municipal
23    and county government within which the employment loss,
24    relocation, or mass layoff occurs. It shall not be made
25    publicly available.
26        (5) Ninety days prior to closure date, provide job

 

 

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1    descriptions for each employee at the plant or mine to the
2    Department and the entity providing career and training
3    counseling.
4        (6) Ninety days prior to closure date, make available
5    to the Department and the entity providing career and
6    training counseling any industry-related certifications
7    and on-the-job training the employee earned to allow union
8    training programs, community colleges, or other
9    certification programs to award credit for life
10    experiences in order to reduce the amount of time to
11    complete training, certificates, or degrees for the
12    dislocated employee.
13        (7) Maintain responsible retirement account
14    portfolios.
 
15    Section 10-30. Displaced Energy Worker Dependent
16Transition Scholarship.
17    (a) Subject to appropriation, the benefits of this Section
18shall be administered by and paid for out of funds made
19available to the Illinois Student Assistance Commission.
20    (b) Any natural child, legally adopted child, or stepchild
21of an eligible displaced energy worker who possesses all
22necessary entrance requirements shall, upon application and
23proper proof, be awarded a transition scholarship consisting
24of the equivalent of one calendar year of full-time
25enrollment, including summer terms, to the State-supported

 

 

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1Illinois institution of higher learning of his or her choice.
2    (c) As used in this Section, "eligible displaced energy
3worker" means an energy worker who has lost employment due to
4the reduced operation or closure of a fossil fuel power plant
5or coal mine.
6    (d) Full-time enrollment means 12 or more semester hours
7of courses per semester, or 12 or more quarter hours of courses
8per quarter, or the equivalent thereof per term. Scholarships
9utilized by dependents enrolled in less than full-time study
10shall be computed in the proportion which the number of hours
11so carried bears to full-time enrollment.
12    (e) Scholarships awarded under this Section may be used by
13a child without regard to his or her age. The holder of a
14Scholarship awarded under this Section shall be subject to all
15examinations and academic standards, including the maintenance
16of minimum grade levels, that are applicable generally to
17other enrolled students at the Illinois institution of higher
18learning where the scholarship is being used.
19    (f) An applicant is eligible for a scholarship under this
20Section when the Commission finds the applicant:
21        (1) is the natural child, legally adopted child, or
22    stepchild of an eligible displaced energy worker; and
23        (2) in the absence of transition scholarship
24    assistance, will be deterred by financial considerations
25    from completing an educational program at the
26    State-supported Illinois institution of higher learning of

 

 

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1    his or her choice.
2    (g) Funds may be made available from the Energy Transition
3Assistance Fund to the Commission to provide these grants.
4    (h) The scholarship shall only cover tuition and fees at
5the rates offered to students residing within the State or in
6the district, but shall not exceed the cost equivalent of one
7calendar year of full-time enrollment, including summer terms,
8at the University of Illinois. The Commission shall determine
9the grant amount for each student.
 
10    Section 10-35. Consideration of energy worker employment.
11    (a) All State departments and agencies shall conduct a
12review of the Department of Commerce and Economic
13Opportunity's registry of energy workers to determine whether
14any qualified candidates are displaced energy workers before
15making a final hiring decision for a position in State
16employment.
17    (b) The Department of Commerce and Economic Opportunity
18shall inform all State agencies and departments of the
19obligations created by this Section and take steps to ensure
20compliance.
21    (c) Nothing in this Section shall be interpreted to
22indicate that the State is required to hire displaced energy
23workers for any position.
24    (d) No part of this Section shall be interpreted to be in
25conflict with federal or State civil rights or employment law.
 

 

 

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1    Section 10-40. Energy Community Reinvestment Report.
2Beginning 365 days after the effective date of this Act, and at
3least once each calendar year thereafter, the Department shall
4create or commission the creation of a report on the energy
5worker and transition programs created in this Act and publish
6the report on its website. The report shall, at a minimum,
7contain information on program metrics, the demographics of
8participants, program impact, and recommendations for future
9modifications to the services provided by the Department under
10these programs.
 
11    Section 10-70. Administrative review. All final
12administrative decisions, including, but not limited to,
13funding allocation and rules issued by the Department under
14this Act are subject to judicial review under the
15Administrative Review Law. No action may be commenced under
16this Section prior to 60 days after the complainant has given
17notice in writing of the action to the Department.
 
18    Section 10-90. Repealer. This Act is repealed 14 years
19after the effective date of this Act.
 
20
Article 15. Community Energy, Climate, and Jobs Planning Act

 
21    Section 15-1. Short title. This Article may be cited as

 

 

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1the Community Energy, Climate, and Jobs Planning Act.
2References in this Article to "this Act" mean this Article.
 
3    Section 15-5. Findings. The General Assembly makes the
4following findings:
5        (1) The health, welfare, and prosperity of Illinois
6    residents require that Illinois take all steps possible to
7    combat climate change, address harmful environmental
8    impacts deriving from the generation of electricity,
9    maximize quality job creation in the emerging clean energy
10    economy, ensure affordable utility service, equitable and
11    affordable access to transportation, and clean, safe, and
12    affordable housing.
13        (2) The achievement of these goals will depend on
14    strong community engagement to ensure that programs and
15    policy solutions meet the needs of disparate communities.
16        (3) Ensuring that these goals are met without adverse
17    impacts on utility bill affordability, housing
18    affordability, and other essential services will depend on
19    the coordination of policies and programs within local
20    communities.
 
21    Section 15-10. Definitions. As used in this Act:
22    "Alternative energy improvement" means the installation or
23upgrade of electrical wiring, outlets, or charging stations to
24charge a motor vehicle that is fully or partially powered by

 

 

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1electricity; photovoltaic, energy storage, or thermal
2resource; or any combination thereof.
3    "Disadvantaged worker" means an individual who is defined
4as: (1) being homeless; (2) being a custodial single parent;
5(3) being a recipient of public assistance; (4) lacking a high
6school diploma or high school equivalency; (5) having a
7criminal record or other involvement in the criminal justice
8system; (6) suffering from chronic unemployment; (7) being
9previously in the child welfare system; or (8) being a
10veteran.
11    "Energy efficiency improvement" means equipment, devices,
12or materials intended to decrease energy consumption or
13promote a more efficient use of electricity, natural gas,
14propane, or other forms of energy on property, including, but
15not limited to:
16        (1) insulation in walls, roofs, floors, foundations,
17    or heating and cooling distribution systems;
18        (2) storm windows and doors, multi-glazed windows and
19    doors, heat-absorbing or heat-reflective glazed and coated
20    window and door systems, and additional glazing,
21    reductions in glass area, and other window and door system
22    modifications that reduce energy consumption;
23        (3) automated energy control systems;
24        (4) high efficiency heating, ventilating, or
25    air-conditioning and distribution system modifications or
26    replacements;

 

 

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1        (5) caulking, weather-stripping, and air sealing;
2        (6) replacement or modification of lighting fixtures
3    to reduce the energy use of the lighting system;
4        (7) energy controls or recovery systems;
5        (8) day lighting systems;
6        (9) any energy efficiency project, as defined in
7    Section 825-65 of the Illinois Finance Authority Act; and
8        (10) any other installation or modification of
9    equipment, devices, or materials approved as a utility
10    cost-saving measure by the governing body.
11    "Energy project" means the installation or modification of
12an alternative energy improvement, energy efficiency
13improvement, or water use improvement, or the acquisition,
14installation, or improvement of a renewable energy system that
15is affixed to a stabilized existing property, including new
16construction.
17    "Environmental justice communities" means the proposed
18definition of that term based on existing methodologies and
19findings used by the Illinois Power Agency and its
20Administrator in its Illinois Solar for All Program.
21    "Equity investment eligible community" or "eligible
22community" are synonymous and mean the geographic areas
23throughout Illinois which would most benefit from equitable
24investments by the State designed to combat discrimination and
25foster sustainable economic growth. Specifically, eligible
26communities shall be defined as the following areas:

 

 

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1        (1) R3 Areas as established pursuant to Section 10-40
2    of the Cannabis Regulation and Tax Act, where residents
3    have historically been excluded from economic
4    opportunities, including opportunities in the energy
5    sector; and
6        (2) Environmental justice communities, as defined by
7    the Illinois Power Agency pursuant to the Illinois Power
8    Agency Act, where residents have historically been subject
9    to disproportionate burdens of pollution, including
10    pollution from the energy sector.
11    "Equity investment eligible person" or "eligible person"
12are synonymous and mean the persons who would most benefit
13from equitable investments by the State designed to combat
14discrimination and foster sustainable economic growth.
15Specifically, "eligible person" means the following people:
16        (1) a person whose primary residence is in an equity
17    investment eligible community;
18        (2) a person who is a graduate of or currently
19    enrolled in the foster care system; or
20        (3) a person who was formerly incarcerated.
21    "Governing body" means the county board or board of county
22commissioners of a county, the city council of a municipality,
23or the board of trustees of a village.
24    "Local Employment Plan" means a bidding option that public
25agencies may include in requests for proposals to incentivize
26bidders to voluntarily plan to retain and create high-skilled

 

 

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1local manufacturing jobs; invest in preapprenticeship,
2apprenticeship, and training opportunities; and develop
3family-sustaining career pathways into clean energy industries
4for disadvantaged workers in a specified local area. The Local
5Employment Plan only applies to work that is not financed with
6federal money.
7    "Local unit of government" means a county, municipality,
8or village.
9    "Natural climate solutions" means conservation,
10restoration, or improved land management actions that increase
11carbon storage or avoid greenhouse gas emissions on natural
12and working lands.
13    "Nature-based approaches for climate adaptation" means
14actions that preserve, enhance, or expand functions provided
15by nature that increase capacity to manage adverse conditions
16created or exacerbated by climate change. "Nature-based
17approaches for climate adaptation" includes, but is not
18limited to, the restoration of native ecosystems, especially
19floodplains; installation of bioswales, rain gardens, and
20other green stormwater infrastructure; and practices that
21increase soil health and reduce urban heat island effects.
22    "Public agency" means the State of Illinois or any of its
23government bodies and subdivisions, including the various
24counties, townships, municipalities, school districts,
25educational service regions, special road districts, public
26water supply districts, drainage districts, levee districts,

 

 

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1sewer districts, housing authorities, and transit agencies.
2    "Renewable energy resource" includes energy and its
3associated renewable energy credit or renewable energy credits
4from wind energy, solar thermal energy, geothermal energy,
5photovoltaic cells and panels, biodiesel, anaerobic digestion,
6and hydropower that does not involve new construction or
7significant expansion of hydropower dams. For purposes of this
8Act, landfill gas produced in the State is considered a
9renewable energy resource. "Renewable energy resource" does
10not include the incineration or burning of any solid material.
11    "Renewable energy system" means a fixture, product,
12device, or interacting group of fixtures, products, or devices
13on the customer's side of the meter that use one or more
14renewable energy resources to generate electricity, and
15specifically includes any renewable energy project, as defined
16in Section 825-65 of the Illinois Finance Authority Act.
17    "U.S. Employment Plan" means a bidding option that public
18agencies may include in requests for proposals to incentivize
19bidders to voluntarily plan to retain and create high-skilled
20U.S. manufacturing jobs; invest in preapprenticeship,
21apprenticeship, and training opportunities; and develop
22family-sustaining career pathways into clean energy industries
23for disadvantaged workers throughout the U.S. The U.S.
24Employment Plan only applies to work financed with federal
25Money.
26    "Water use improvement" means any fixture, product,

 

 

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1system, device, or interacting group thereof for or serving
2any property that has the effect of conserving water resources
3through improved water management, efficiency, or thermal
4resource.
 
5    Section 15-15. Community Energy, Climate, and Jobs Plans;
6creation.
7    (a) Pursuant to the procedures in Section 15-20, a local
8unit of government may establish Community Energy, Climate,
9and Jobs Plans and identify boundaries and areas covered by
10the Plans.
11    (b) Community Energy, Climate, and Jobs Plans are intended
12to aid local governments in developing a comprehensive
13approach to combining different energy, climate, and jobs
14programs and funding resources to achieve complementary
15impact. An effective planning process may:
16        (1) help communities discover ways that their local
17    government, businesses, and residents can control their
18    energy use and lower their bills;
19        (2) ensure a cost-effective transition away from
20    fossil fuels in the transportation sector;
21        (3) expand access to workforce development and job
22    training opportunities for disadvantaged workers in the
23    emerging clean energy economy;
24        (4) incentivize the creation and retention of quality
25    Illinois jobs (when federal funds are not involved) in the

 

 

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1    emerging clean energy economy;
2        (5) incentivize the creation and retention of quality
3    U.S. jobs in the emerging clean energy economy;
4        (6) promote economic development through improvements
5    in community infrastructure, transit, and support for
6    local business;
7        (7) improve the health of Illinois communities,
8    especially eligible communities, by reducing emissions,
9    addressing existing brownfield areas, and promoting the
10    integration of distributed energy resources;
11        (8) enable greater customer engagement, empowerment,
12    and options for energy services, and ultimately reduce
13    utility bills for Illinoisans;
14        (9) bring the benefits of grid modernization and the
15    deployment of distributed energy resources to economically
16    disadvantaged communities and eligible communities
17    throughout Illinois;
18        (10) support existing Illinois policy goals promoting
19    energy efficiency, demand response, and investments in
20    renewable energy resources;
21        (11) enable communities to better respond to extreme
22    heat and cold emergencies;
23        (12) explore opportunities to expand and improve
24    recreational amenities, wildlife habitat, flood
25    mitigation, agricultural production, tourism, and similar
26    co-benefits by deploying natural climate solutions and

 

 

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1    nature-based approaches for climate adaptation; and
2        (13) ensure eligible persons, minorities, women,
3    people with disabilities, and veterans meaningfully
4    participate in the transition to a clean energy economy.
5    (c) A Community Energy, Climate, and Jobs Plan may include
6discussion of:
7        (1) the demographics of the community, including
8    information on the mix of residential and commercial areas
9    and populations, ages, languages, education, and workforce
10    training, including an examination of the average utility
11    bills paid within the community by class and zip code, the
12    percentage and locations of individuals requiring energy
13    assistance, and participation of community members in
14    other assistance programs;
15        (2) an examination of the community's energy use, for
16    electricity, natural gas, transportation, and other fuels;
17        (3) the geography of the community, including the
18    amount of green space, brownfield sites, farmland,
19    waterways, flood zones, heat islands, areas for potential
20    development, location of critical infrastructure such as
21    emergency response facilities, health care and education
22    facilities, and public transportation routes;
23        (4) information on economic development opportunities,
24    commercial usage, and employment opportunities;
25        (5) the current status of zero emission vehicles
26    operated by or on behalf of public agencies within the

 

 

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1    community; and
2        (6) other topics deemed applicable by the community.
3    (d) A Community Energy, Climate, and Jobs Plan may address
4the following areas:
5        (1) distributed energy resources, including energy
6    efficiency, demand response, dynamic pricing, energy
7    storage, and solar (thermal, rooftop, and community);
8        (2) building codes, both commercial and residential;
9        (3) alternative transportation funding;
10        (4) transit options, including individual car
11    ownership, ridesharing, buses, trains, bicycles, and
12    pedestrian walkways;
13        (5) community assets related to extreme heat and cold
14    emergencies, such as cooling and warming centers;
15        (6) public agency procurements of zero emission,
16    electric vehicles; and
17        (7) networks of natural resources and infrastructure.
18    (e) A Community Energy, Climate, and Jobs Plan may
19conclude with proposals to:
20        (1) increase the use of electricity as a
21    transportation fuel at multi-unit dwellings;
22        (2) maximize the system-wide benefits of
23    transportation electrification;
24        (3) direct public agencies to implement tools, such as
25    the U.S. Employment Plan or a Local Employment Plan, to
26    incentivize manufacturers in clean energy industries to

 

 

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1    create and retain quality jobs and invest in training,
2    workforce development, and apprenticeship programs in
3    connection to a major contract;
4        (4) test innovative load management programs or rate
5    structures associated with the use of electric vehicles by
6    residential customers to achieve customer fuel cost
7    savings relative to gasoline or diesel fuels and to
8    optimize grid efficiency;
9        (5) increase the integration of distributed energy
10    resources in the community;
11        (6) significantly expand the percentage of net-zero
12    housing and net-zero buildings in the community;
13        (7) improve utility bill affordability;
14        (8) increase mass transit ridership;
15        (9) decrease vehicle miles traveled;
16        (10) reduce local emissions of greenhouse gases, NOx,
17    SOx, particulate matter, and other air pollutants;
18        (11) improve community assets that help residents
19    respond to extreme heat and cold emergencies; and
20        (12) expand opportunities for eligible persons,
21    minorities, women, people with disabilities, and veterans
22    to meaningfully participate in the transition to a clean
23    energy economy.
24    (f) A Community Energy, Climate, and Jobs Plan may be
25administered by one or more program administrators or the
26local unit of government.
 

 

 

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1    Section 15-20. Community Energy, Climate, and Jobs
2Planning process.
3    (a) An effective planning process shall engage a diverse
4set of stakeholders in local communities, including:
5environmental justice organizations; economic development
6organizations; faith-based nonprofit organizations;
7educational institutions; interested residents; health care
8institutions; tenant organizations; housing institutions,
9developers, and owners; elected and appointed officials; and
10representatives reflective of each local community.
11    (b) An effective planning process shall engage individual
12members of the community to the extent possible to ensure that
13the Plans receive input from as diverse a set of perspectives
14as possible.
15    (c) Plan materials and meetings related to the Plan shall
16be translated into languages that reflect the makeup of the
17local community.
18    (d) The planning process shall be conducted in an ethical,
19transparent fashion, and continually review its policies and
20practices to determine how best to meet its objectives.
21    (e) The Community, Energy, and Climate Plans shall take
22into account other applicable or relevant economic development
23plans, such as a Comprehensive Economic Development Strategy,
24developed by a local unit of government, economic development
25organization, or Regional Planning Council.
 

 

 

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1    Section 15-25. Joint Community Energy, Climate, and Jobs
2Plans. A local unit of government may join with any other local
3unit of government, or with any public or private person, or
4with any number or combination thereof, under the
5Intergovernmental Cooperation Act, by contract or otherwise as
6may be permitted by law, for the implementation of a Community
7Energy, Climate, and Jobs Plan, in whole or in part.
 
8    Section 15-90. Repealer. This Act is repealed 14 years
9after the effective date of this Act.
 
10
Article 20. Illinois Clean Energy
11
Jobs and Justice Fund Act

 
12    Section 20-1. Short title. This Article may be cited as
13the Clean Energy Jobs and Justice Fund Act. References in this
14Article to "this Act" mean this Article.
 
15    Section 20-5. Purpose. The purpose of this Act is to
16promote the health, welfare, and prosperity of all the
17residents of this State by ensuring access to financial
18products that allow Illinois residents and businesses to
19invest in clean energy. Furthermore, the Clean Energy Jobs and
20Justice Fund, is designed to fill the following purposes:
21        (1) ensure that the benefits of the clean energy

 

 

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1    economy are equitably distributed;
2        (2) make clean energy accessible to all through the
3    provision of innovative financing opportunities and grants
4    for Minority Business Enterprises (MBE) and other
5    contractors of color, and for low-income, environmental
6    justice, and BIPOC communities and the businesses that
7    serve these communities;
8        (3) prioritize the provision of public and private
9    capital for clean energy investment to MBEs and other
10    contractors of color, and to businesses serving
11    low-income, environmental justice, and BIPOC communities;
12        (4) accelerate the flow of private capital into clean
13    energy markets;
14        (5) assist low-income, environmental justice, and
15    BIPOC community utility customers in paying for solar and
16    energy efficiency upgrades through energy cost savings;
17        (6) increase access to no-cost and low-cost loans for
18    MBE and other contractors of color;
19        (7) develop financing products designed to compensate
20    for historical and structural barriers preventing
21    low-income, environmental justice, and BIPOC communities
22    from accessing traditional financing;
23        (8) leverage private investment in clean energy
24    projects and in projects developed by MBEs and other
25    contractors of color; and
26        (9) pursue financial self-sustainability through

 

 

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1    innovative financing products.
 
2    Section 20-10. Definitions. As used in this Act:
3    "Black, indigenous, and people of color" or "BIPOC" means
4people who are members of the groups described in
5subparagraphs (a) through (e) of paragraph (A) of subsection
6(1) of Section 2 of the Business Enterprise for Minorities,
7Women, and Persons with Disabilities Act.
8    "Board" means the Board of Directors of the Clean Energy
9Jobs and Justice Fund.
10    "Contractor of color" means a business entity that is at
11least 51% owned by one or more BIPOC persons, or in the case of
12a corporation, at least 51% of the corporation's stock is
13owned by one or more BIPOC persons, and the management and
14daily business operations of which are controlled by one or
15more of the BIPOC persons who own it. A contractor of color may
16also be a nonprofit entity with a board of directors composed
17of at least 51% BIPOC persons or a nonprofit entity certified
18by the State of Illinois to be minority-led.
19    "Environmental justice communities" means the definition
20of that term based on existing methodologies and findings used
21by the Illinois Power Agency and its Administrator of the
22Illinois Solar for All Program.
23    "Fund" means the Clean Energy Jobs and Justice Fund.
24    "Low-income" means households whose income does not exceed
2580% of Area Median Income (AMI), adjusted for family size and

 

 

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1revised every 5 years.
2    "Low-income community" means a census tract where at least
3half of households are low-income.
4    "Minority-owned business enterprise" or "MBE" means a
5business certified as such by an authorized unit of government
6or other authorized entity in Illinois.
7    "Municipality" means a city, village, or incorporated
8town.
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    Section 20-15. Clean Energy Jobs and Justice Fund.
15    (a) Not later than 30 days after the effective date of this
16Act, there shall be incorporated a nonprofit corporation to be
17known as the "Clean Energy Jobs and Justice Fund".
18    (b) The Fund shall not be an agency or instrumentality of
19the State Government.
20    (c) The full faith and credit of the State of Illinois
21shall not extend to the Fund.
22    (d) The Fund shall:
23        (1) Be an organization described in subsection (c) of
24    Section 501 of the Internal Revenue Code of 1986 and
25    exempt from taxation under subsection (a) of Section 501

 

 

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1    of that Code;
2        (2) Ensure that no part of the income or assets of the
3    Fund shall inure to the benefit of any director, officer,
4    or employee, except as reasonable compensation for
5    services or reimbursement for expenses; and
6        (3) Not contribute to or otherwise support any
7    political party or candidate for elective office.
 
8    Section 20-20. Board of Directors.
9    (a) The Fund shall be managed by, and its powers,
10functions, and duties shall be exercised through, a Board to
11be composed of 11 members. The initial members of the Board
12shall be appointed by the Governor with the advice and consent
13of the Senate within 60 days after the effective date of this
14Act. Members of the Board shall be broadly representative of
15the communities that the Fund is designed to serve. Of such
16members:
17        (1) at least one member shall be selected from each of
18    the following geographic regions in the State: northeast,
19    northwest, central, and southern;
20        (2) at least 2 members shall have experience in
21    providing energy-related services to low-income,
22    environmental justice, or BIPOC communities;
23        (3) at least one member shall own or be employed by an
24    MBE or BIPOC-owned business focused on the deployment of
25    clean energy;

 

 

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1        (4) at least one member shall be a policy or
2    implementation expert in serving low-income, environmental
3    justice or BIPOC communities or individuals, including
4    environmental justice communities, BIPOC communities,
5    formerly convicted persons, persons who are or were in the
6    child welfare system, displaced energy workers, gender
7    nonconforming and transgender individuals, or youth; and
8        (5) at least one member shall be from a
9    community-based organization with a specific mission to
10    support racially and socioeconomically diverse
11    environmental justice communities.
12    (a-5) The terms of the initial members of the Board shall
13be as follows:
14        (1) 5 members appointed and confirmed shall have
15    initial 5-year terms;
16        (2) 3 members appointed and confirmed shall have
17    initial 4-year terms; and
18        (3) 3 members appointed and confirmed shall have
19    initial 3-year terms.
20    (b) Subsequent composition and terms.
21        (1) Except for the selection of the initial members of
22    the Board for their initial terms under paragraph (1) of
23    subsection (a) of this Section, the members of the Board
24    shall be elected by the members of the Board.
25        (2) A member of the Board shall be disqualified from
26    voting for any position on the Board for which such member

 

 

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1    is a candidate.
2        (3) All members elected pursuant to paragraph (2) of
3    subsection (a) of this Section shall have a term of 5
4    years.
5    (c) The members of the Board shall be broadly
6representative of the communities that the Fund is designed to
7serve and shall collectively have expertise in environmental
8justice, energy efficiency, distributed renewable energy,
9workforce development, finance and investments, clean
10transportation, and climate resilience. Of such members:
11        (1) not fewer than 2 shall be selected from each of the
12    following geographic regions in the State: northeast,
13    northwest, central, and southern;
14        (2) not fewer than 2 shall be from an MBE or
15    BIPOC-owned business focused on the deployment of clean
16    energy;
17        (3) not fewer than 2 shall be from a community-based
18    organization with a specific mission to support racially
19    and socioeconomically diverse environmental justice
20    communities; and
21        (4) not fewer than 2 shall be from an organization
22    specializing in providing energy-related services to
23    low-income, environmental justice, or BIPOC communities.
24        (5) Members of the Board can fulfill multiple
25    criteria, such as representing the southern region and an
26    MBE or BIPOC-owned business focused on the deployment of

 

 

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1    clean energy.
2    (d) No officer or employee of the State or any other level
3of government may be appointed or elected as a member of the
4Board.
5    (e) Seven members of the Board shall constitute a quorum.
6    (f) The Board shall adopt, and may amend, such bylaws as
7are necessary for the proper management and functioning of the
8Fund. Such bylaws shall include designation of officers of the
9Fund and the duties of such officers.
10    (g) No person who is an employee in any managerial or
11supervisory capacity, director, officer or agent or who is a
12member of the immediate family of any such employee, director,
13officer, or agent of any public utility is eligible to be a
14director. No director may hold any elective position, be a
15candidate for any elective position, be a State public
16official, be employed by the Illinois Commerce Commission, or
17be employed in a governmental position exempt from the
18Illinois Personnel Code.
19    (h) No director, nor member of his or her immediate family
20shall, either directly or indirectly, be employed for
21compensation as a staff member or consultant of the Fund.
22    (i) The Board shall hold regular meetings at least once
23every 3 months on such dates and at such places as it may
24determine. Meetings may be held by teleconference or
25videoconference. Special meetings may be called by the
26president or by a majority of the directors upon at least 7

 

 

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1days' advance written notice. The act of the majority of the
2directors, present at a meeting at which a quorum is present,
3shall be the act of the Board of Directors unless the act of a
4greater number is required by this Act or bylaws. A summary of
5the minutes of every Board meeting shall be made available to
6each public library in the State upon request and to
7individuals upon request. Board of Directors meeting minutes
8shall be posted on the Fund's website within 14 days after
9Board approval of the minutes.
10    (j) A director may not receive any compensation for his or
11her services but shall be reimbursed for necessary expenses,
12including travel expenses incurred in the discharge of duties.
13The Board shall establish standard allowances for mileage,
14room and meals and the purposes for which such allowances may
15be made and shall determine the reasonableness and necessity
16for such reimbursements.
17    (k) In the event of a vacancy on the Board, the Board of
18Directors shall appoint a temporary member, consistent with
19the requirements of the Board composition, to serve the
20remainder of the term for the vacant seat.
21    (l) The Board shall adopt rules for its own management and
22government, including bylaws and a conflict of interest
23policy.
24    (m) The Board of Directors of the Fund shall adopt written
25procedures for:
26        (1) adopting an annual budget and plan of operations,

 

 

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1    including a requirement of Board approval before the
2    budget or plan may take effect;
3        (2) hiring, dismissing, promoting, and compensating
4    employees of the Fund, including an affirmative action
5    policy and a requirement of Board approval before a
6    position may be created or a vacancy filled;
7        (3) acquiring real and personal property and personal
8    services, including a requirement of Board approval for
9    any non-budgeted expenditure in excess of $5,000;
10        (4) contracting for financial, legal, bond
11    underwriting and other professional services, including
12    requirements that the Fund (i) solicit proposals at least
13    once every 3 years for each such service that it uses, and
14    (ii) ensure equitable contracting with diverse suppliers;
15        (5) issuing and retiring bonds, bond anticipation
16    notes, and other obligations of the Fund; and
17        (6) awarding loans, grants and other financial
18    assistance, including (i) eligibility criteria, the
19    application process and the role played by the Fund's
20    staff and Board of Directors, and (ii) ensuring racial
21    equity in the awarding of loans, grants, and other
22    financial assistance.
23    (n) The Board shall develop a robust set of metrics to
24measure the degree to which the program is meeting the
25purposes set forth in Section 20-5 of this Act, and especially
26measuring adherence to the racial equity purposes set forth

 

 

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1there, and a reporting format and schedule to be adhered to by
2the Fund officers and staff. These metrics and reports shall
3be posted quarterly on the Fund's website.
4    (o) The Board of Directors has the responsibility to make
5program adjustments necessary to ensure that the Clean Energy
6Jobs and Justice Fund is meeting the purposes set forth in this
7Act. Fund officers and staff and the Board of Directors are
8responsible for ensuring capital providers and Fund officers
9and staff, partners, and financial institutions are held to
10state and federal standards for ethics and predatory lending
11practices and shall immediately remove any offending products
12and sponsoring organizations from Fund participation.
13    (p) The Board shall issue annually a report reviewing the
14activities of the Fund in detail and shall provide a copy of
15such report to the joint standing committees of the General
16Assembly having cognizance of matters relating to energy and
17commerce. The report shall be published on the Fund's website
18within 3 days after its submission to the General Assembly.
 
19    Section 20-25. Powers and duties.
20    (a) The Fund shall endeavor to perform the following
21actions, but is not limited to these specified actions:
22        (1) Develop programs to finance and otherwise support
23    clean energy investment and projects as determined by the
24    Fund in keeping with the purposes of this Act.
25        (2) Support financing or other expenditures that

 

 

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1    promote investment in clean energy sources in order to (i)
2    foster the development and commercialization of clean
3    energy projects, including projects serving low-income,
4    environmental justice, and BIPOC communities, and (ii)
5    support project development by MBE and other contractors
6    of color.
7        (3) Prioritize the provision of public and private
8    capital for clean energy investment to MBEs and other
9    contractors of color, and to clean energy investment in
10    low-income, environmental justice, and BIPOC communities.
11        (4) Provide access to grants, no-cost, and low-cost
12    loans to MBEs and other contractors of color, including
13    those participating in the Clean Energy Primes Contractor
14    Accelerator Program.
15        (5) Provide financial assistance in the form of
16    grants, loans, loan guarantees or debt and equity
17    investments, as approved in accordance with written
18    procedures.
19        (6) Assume or take title to any real property, convey
20    or dispose of its assets and pledge its revenues to secure
21    any borrowing, convey or dispose of its assets and pledge
22    its revenues to secure any borrowing, for the purpose of
23    developing, acquiring, constructing, refinancing,
24    rehabilitating or improving its assets or supporting its
25    programs, provided each such borrowing or mortgage, unless
26    otherwise provided by the Board or the Fund, shall be a

 

 

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1    special obligation of the Fund, which obligation may be in
2    the form of bonds, bond anticipation notes, or other
3    obligations that evidence an indebtedness to the extent
4    permitted under this Act to fund, refinance and refund the
5    same and provide for the rights of holders thereof, and to
6    secure the same by pledge of revenues, notes and mortgages
7    of others, and which shall be payable solely from the
8    assets, revenues and other resources of the Fund and such
9    bonds may be secured by a special capital reserve fund
10    contributed to by the State.
11        (7) Contract with community-based organizations to
12    design and implement program marketing, communications,
13    and outreach to potential users of the Fund's products,
14    particularly potential users in low-income, environmental
15    justice, and BIPOC communities. These contracts shall
16    include funding to ensure that the contracted
17    community-based organizations provide materials and
18    outreach support, including payments for time and
19    expenses, to other community organizations, professional
20    organizations, and subcontractors that have an interest in
21    the Fund's financial products.
22        (8) Collect the following data and perform monthly and
23    quarterly reporting to the Board in accordance with the
24    reporting format and schedule developed by the Board of
25    Directors:
26            (A) baseline data on capital sources or providers,

 

 

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1        loan recipients, projects funded, loan terms, and
2        other relevant financial data;
3            (B) diversity and equity data, including race,
4        gender, socioeconomic, and geographic region; and
5            (C) program administration and servicing data.
6        These reports shall be published to the Fund's website
7        monthly and quarterly. Reports published to the
8        website may be anonymized to protect the data of
9        individual program participants.
10        (9) Have the purposes as provided by resolution of the
11    Fund's Board of Directors, which purposes shall be
12    consistent with this Section and Section 20-5 of this Act.
13    No further action is required for the establishment of the
14    Fund, except the adoption of a resolution for the Fund.
15    (b) In addition to, and not in limitation of, any other
16power of the Fund set forth in this Section or any other
17provision of the general statutes, the Fund shall have and may
18exercise the following powers in furtherance of or in carrying
19out its purposes:
20        (1) have perpetual succession as a body corporate and
21    to adopt bylaws, policies, and procedures for the
22    regulation of its affairs and the conduct of its business;
23        (2) make and enter into all contracts and agreements
24    that are necessary or incidental to the conduct of its
25    business;
26        (3) invest in, acquire, lease, purchase, own, manage,

 

 

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1    hold, sell, and dispose of real or personal property or
2    any interest therein;
3        (4) borrow money or guarantee a return to investors or
4    lenders;
5        (5) hold patents, copyrights, trademarks, marketing
6    rights, licenses, or other rights in intellectual
7    property;
8        (6) employ such assistants, agents, and employees as
9    may be necessary or desirable; establish all necessary or
10    appropriate personnel practices and policies, including
11    those relating to hiring, promotion, compensation and
12    retirement, and engage consultants, attorneys, financial
13    advisers, appraisers, and other professional advisers as
14    may be necessary or desirable;
15        (7) invest any funds not needed for immediate use or
16    disbursement pursuant to investment policies adopted by
17    the Fund's Board of Directors;
18        (8) procure insurance against any loss or liability
19    with respect to its property or business of such types, in
20    such amounts and from such insurers as it deems desirable;
21        (9) enter into joint ventures and invest in, and
22    participate with any person, including, without
23    limitation, government entities and private corporations,
24    in the formation, ownership, management and operation of
25    business entities, including stock and nonstock
26    corporations, limited liability companies and general or

 

 

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1    limited partnerships, formed to advance the purposes of
2    the Fund, provided members of the Board of Directors or
3    officers or employees of the Fund may serve as directors,
4    members or officers of any such business entity, and such
5    service shall be deemed to be in the discharge of the
6    duties or within the scope of the employment of any such
7    director, officer or employee, as the case may be, so long
8    as such director, officer or employee does not receive any
9    compensation or financial benefit as a result of serving
10    in such role; and
11        (10) all other acts necessary or convenient to carry
12    out the purposes of this Act.
13    (c) Before making any loan, loan guarantee, or such other
14form of financing support or risk management for a clean
15energy project, the Fund shall develop standards to govern the
16administration of the Fund through rules, policies, and
17procedures that specify borrower eligibility, terms, and
18conditions of support, and other relevant criteria, standards,
19or procedures.
20    (d) Funding sources specifically authorized include, but
21are not limited to:
22        (1) funds repurposed from existing programs providing
23    financing support for clean energy projects, provided any
24    transfer of funds from such existing programs shall be
25    subject to approval by the General Assembly and shall be
26    used for expenses of financing, grants, and loans;

 

 

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1        (2) any federal funds that can be used for the
2    purposes specified in this Act;
3        (3) charitable gifts, grants, contributions, as well
4    as loans from individuals, corporations, university
5    endowment funds, and philanthropic foundations; and
6        (4) earnings and interest derived from financing
7    support activities for clean energy projects backed by the
8    Fund.
9    (e) The Fund may enter into agreements with private
10sources to raise capital.
11    (f) The Fund may assess reasonable fees on its financing
12activities to cover its reasonable costs and expenses, as
13determined by the Board.
14    (g) The Fund shall make information regarding the rates,
15terms and conditions for all of its financing support
16transactions available to the public for inspection, including
17formal annual reviews by both a private auditor conducted
18pursuant this Section and the Comptroller, and provide details
19to the public on the Internet, provided public disclosure
20shall be restricted for patentable ideas, trade secrets,
21proprietary or confidential commercial or financial
22information, disclosure of which may cause commercial harm to
23a nongovernmental recipient of such financing support and for
24other information exempt from public records disclosure.
25    (h) The powers enumerated in this Section shall be
26interpreted broadly to effectuate the purposes established in

 

 

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1this Section and shall not be construed as a limitation of
2powers.
 
3    Section 20-30. Primary responsibilities in early program
4development.
5    (a) Consistent with the goals of this Act, the Fund has the
6authority to pursue a broad range of financial products and
7services. In early development of products and services
8offered, the Fund should consider the following programs as
9its initial set of investment initiatives:
10        (1) a solar lease, power-purchase agreement, or
11    loan-to-own product specifically designed to complement
12    and grow the Illinois Solar for All Program;
13        (2) direct capitalization of contractors of color
14    participating in or graduating from the workforce and
15    business development programs established in the Energy
16    Transition Act;
17        (3) providing direct capitalization of community-based
18    projects in environmental justice communities through
19    upfront grants. Project applications should provide a
20    community benefit, align with environmental justice
21    communities, be in support of this Act's contractor and
22    workforce development goals, and support upfront planning,
23    development, and start up costs that often are not covered
24    prior to applying for program incentives and other loan
25    products;

 

 

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1        (4) providing loan loss reserve products to secure
2    stable and low-interest financing for individual projects
3    and portfolios consistent with the goals of this Act that
4    would be otherwise unable to receive financing; and
5        (5) offering financing and administrative services for
6    municipal utilities and rural electric cooperatives to
7    create their own version of the on-bill Equitable Energy
8    Upgrade Program such as the Pay As You Save program
9    developed by the Energy Efficiency Institute.
 
10    Section 20-35. Executive director and fund management.
11    (a) The executive director hired by the Board shall have
12the same qualifications as a director pursuant to subsections
13(d), (g), and (h) of Section 20-20 of this Act. The executive
14director may not be a candidate for the Board of Directors
15while serving as executive director. The executive director
16must have 5 or more years of experience in equitable and
17inclusive financing serving racially and socioeconomically
18diverse communities.
19    (b) To hire the executive director, the Board shall adhere
20to any applicable State or federal law prohibiting
21discrimination in employment.
22    (c) The Board shall require all applicants for the
23position of executive director of the Fund to file a financial
24statement consistent with requirements established by the
25Board. The Board shall require the executive director to file

 

 

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1a current statement annually.
2    (d) The Fund shall be administered by the executive
3director and the staff and overseen by the Board of Directors.
4Fund officers and staff shall receive training in how to best
5provide services and support to low-income, environmental
6justice, and BIPOC communities and on supporting borrowers
7with loan applications, loan underwriting, and loan services.
 
8    Section 20-40. Dissolution. The Fund may dissolve or be
9dissolved under the General Not for Profit Corporation Act.
 
10    Section 20-90. Repealer. This Act is repealed 14 years
11after the effective date of this Act.
 
12
Article 90.

 
13    Section 90-1. Legislative findings. The General Assembly
14finds and declares:
15        (1) The overall objectives of regulation of the
16    electric utility industry in this State, as expressed by
17    the General Assembly in the Illinois Power Agency Act and
18    the Public Utilities Act, include the provision of
19    adequate, efficient, reliable, environmentally safe, and
20    least-cost utility services at prices that accurately
21    reflect the long-term cost of such services and that are
22    equitable to all citizens.

 

 

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1        (2) For many years, a significant portion of the
2    electricity consumed by consumers and businesses in this
3    State, particularly in the downstate region, has been
4    produced by large coal-fueled electric generating stations
5    located in the downstate region. However, in recent years,
6    the prices for electric generating capacity and energy
7    available to coal-fueled electric generating stations
8    located in the downstate region of this State have been
9    insufficient to enable many electric generating facilities
10    located within the downstate region to remain in
11    operation, and have placed other electric generating
12    stations at risk of closure. Changes in environmental
13    regulations and, significantly, increasing concerns about
14    the effects of carbon emissions on the climate, have also
15    contributed to the retirement of coal-fueled generating
16    stations in the downstate region. As a result, the vast
17    majority of the coal-fueled generation located in
18    Illinois, and particularly in the downstate region, has
19    recently been retired or will be retired by no later than
20    the end of 2027.
21        (3) Reliable electric service at all times is
22    essential to the functioning of a modern economy and of
23    society in general. The health, welfare, and prosperity of
24    Illinois citizens, including the attractiveness of the
25    State of Illinois to business and industry, requires the
26    availability of sufficient electric generating capacity,

 

 

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1    including energy storage capacity, to meet the demands of
2    consumers and businesses in this State at all times.
3    However, to a significant extent, electricity, when
4    generated, cannot be stored for future use in any
5    significant amount relative to the total amount of
6    electricity that existing generating facilities can
7    produce. Rather, for the most part, electricity must be
8    produced instantaneously at the time and in the amount
9    that it is demanded by residential and business consumers.
10    The development of energy storage facilities provides some
11    opportunity to store some amounts of electricity for use
12    at later times; but energy storage facilities with
13    sufficient capacity to deliver electricity to meet the
14    demands of consumers in this State, 24 hours per day, 7
15    days per week on every day of the year, have not yet been
16    built.
17        (4) Both the Midcontinent Independent System Operator,
18    Inc., which is the independent transmission system
19    operator for downstate Illinois, and its Independent
20    Market Monitor, have expressed concerns about the
21    sufficiency of electric generating resources in downstate
22    Illinois over the next several years, due primarily to the
23    announced and anticipated retirements of coal-fueled
24    electric generating facilities and concerns about how
25    quickly and extensively new wind and solar generating
26    facilities will be placed into service. Concerns have also

 

 

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1    been expressed, based on the intermittent nature of wind
2    and solar generating facilities, as to whether the grid
3    can operate reliably without sufficient dispatchable
4    generation resources or significant additions of energy
5    storage facilities to balance the output of renewable
6    generating facilities. The General Assembly believes that
7    the State cannot afford to find itself in a situation of
8    insufficient electric generating resources to meet the
9    needs of Illinois residential and business consumers 24
10    hours a day, 7 days a week. Thus, consistent with the
11    overall objectives of the regulation of the electric
12    utility industry in this State and the interests of the
13    State in protecting the health and welfare of its
14    residents, regulation should ensure that sufficient
15    generating resources, including energy storage resources,
16    are available to enable the electric utility grid to meet
17    the demands of Illinois electricity consumers at all
18    times.
19        (5) Through previous enactments beginning in 2007, the
20    General Assembly has provided financial incentives for the
21    construction and operation of wind, solar, and other types
22    of renewable energy facilities to serve load in Illinois.
23    In such enactments, the General Assembly has recognized
24    that providing opportunities to enter into long-term
25    contracts for the purchase of renewable energy credits
26    from renewable energy facilities creates incentives, and

 

 

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1    in fact is necessary, for the construction and operation
2    of such resources. Developers typically cannot,
3    financially, develop new, large-scale renewable energy
4    generating resources without having secured long-term
5    contracts for the renewable energy credits that the new
6    facilities will produce.
7        (6) The permitting and siting of new wind and solar
8    generating facilities in Illinois are subject to local
9    governmental control, and in many areas of this State,
10    there has been strong opposition to the siting and
11    construction of new utility-scale wind and solar
12    generating facilities, which in turn has resulted in the
13    denial of, or withdrawal of requests for, necessary
14    approvals for some projects and the enactment of local
15    zoning ordinances imposing requirements and restrictions
16    that increase the costs and reduce the economic
17    attractiveness of such projects. This has resulted in
18    delay or cancellation of a number of renewable energy
19    projects. This experience demonstrates the advantages of
20    targeting the installation of new utility-scale renewable
21    energy facilities at sites that are already suitable for
22    installation of such facilities and can be readily
23    permitted.
24        (7) In light of the intermittent nature of many types
25    of renewable energy facilities, such as wind and solar
26    generation, the installation and operation of electricity

 

 

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1    storage facilities in conjunction with the installation
2    and operation of renewable generation facilities can
3    enhance the value of renewable energy resources to the
4    electric grid.
5        (8) The sites of many of the large coal-fueled
6    electric generating stations located in the downstate
7    region of this State that have recently been retired or
8    announced for retirement, or are at risk of retirement,
9    have existing infrastructure and other characteristics
10    which make them suitable potential sites for development
11    of new renewable energy generating facilities and
12    electricity storage facilities. This infrastructure and
13    other characteristics include large amounts of available
14    land situated at a suitable distance from populated areas,
15    suitable levels of exposure to sunlight, and high voltage
16    interconnections to nearby bulk electric system
17    transmission grid facilities at strategic locations.
18    Development of these generating plant sites for
19    large-scale renewable energy generating facilities,
20    particularly photovoltaic facilities which require large
21    amounts of space, and electricity storage facilities, can
22    help advance this State's objective of increasing the
23    portion of the State's total electricity usage that is
24    supplied by zero emission resources, and reducing the
25    proportion of the electricity produced in this State that
26    is produced by carbon-emitting resources, while supporting

 

 

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1    the reliability of electric service in the downstate
2    region. Accordingly, the General Assembly finds that it is
3    in the public interest to encourage the redevelopment of
4    the sites of retired and still-operating coal-fueled
5    electric generating stations as locations for renewable
6    energy generating facilities and electricity storage
7    facilities.
8        (9) Many, if not all, of the coal-fueled electric
9    generating plants in this State that have recently been
10    retired or announced for retirement, or are at near-term
11    risk of retirement, were at one time owned, at whole or in
12    part, by a public utility as defined in Section 3-105 of
13    the Public Utilities Act and were thereby devoted to
14    public service and the public use in Illinois, with their
15    costs paid for by rates paid by public utility ratepayers
16    in Illinois. The General Assembly finds that it is
17    appropriate to provide incentives to the owners of the
18    sites of coal-fueled electric generating facilities in
19    this State that were once owned by public utilities, to
20    repurpose those sites in a manner that continues to
21    benefit the public by providing for the generation of
22    carbon-free, non-emitting electricity and reliable bulk
23    electric service.
24        (10) The General Assembly finds it is appropriate for
25    the State of Illinois to establish a program to provide
26    incentives for the installation and operation of new

 

 

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1    renewable energy facilities, along with energy storage
2    facilities, at the sites of retired and at-risk
3    coal-fueled electric generating facilities in this State,
4    to help expedite the transition of this State's electric
5    generation fleet to lower-emitting resources while
6    ensuring the availability of sufficient electric energy
7    resources to meet the demands of residential and business
8    electricity consumers in this State.
9        (11) In light of the foregoing findings, the purpose
10    of the program established in subsection (c-5) of Section
11    1-75 of the Illinois Power Agency Act is to incentivize
12    and support conversion and development of unused (or to be
13    unused) sites of recently retired and soon to-be-retired
14    coal-fueled power plants in this State to productive new
15    uses as sites for the generation and provision of
16    electricity from renewable energy facilities and energy
17    storage facilities, thereby contributing to the State's
18    efforts to reduce carbon emissions from facilities in this
19    State and increase the production of the State's
20    electricity needs from clean energy resources. The
21    provisions of this Act also will support the reliability
22    of the bulk power grid in this State by incentivizing and
23    supporting installation of new generating facilities and
24    energy storage facilities at locations on the grid where
25    synchronous generation was formerly located.
 

 

 

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1    Section 90-3. The Illinois Administrative Procedure Act is
2amended by adding 5-45.9 as follows:
 
3    (5 ILCS 100/5-45.9 new)
4    Sec. 5-45.9. Emergency rulemaking; Multi-Year Integrated
5Grid Plans. To provide for the expeditious and timely
6implementation of Section 16-105.17 of the Public Utilities
7Act, emergency rules implementing Section 16-105.17 of the
8Public Utilities Act may be adopted in accordance with Section
95-45 by the Illinois Commerce Commission. The adoption of
10emergency rules authorized by Section 5-45 and this Section is
11deemed to be necessary for the public interest, safety, and
12welfare.
13    This Section is repealed one year after the effective date
14of this amendatory Act of the 102nd General Assembly.
 
15    Section 90-5. The Illinois Governmental Ethics Act is
16amended by adding Section 1-121 and by changing Sections
174A-102 and 4A-103 as follows:
 
18    (5 ILCS 420/1-121 new)
19    Sec. 1-121. Public utility. "Public utility" has the
20meaning provided in Section 3-105 of the Public Utilities Act.
 
21    (5 ILCS 420/4A-102)  (from Ch. 127, par. 604A-102)
22    Sec. 4A-102. The statement of economic interests required

 

 

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1by this Article shall include the economic interests of the
2person making the statement as provided in this Section. The
3interest (if constructively controlled by the person making
4the statement) of a spouse or any other party, shall be
5considered to be the same as the interest of the person making
6the statement. Campaign receipts shall not be included in this
7statement.
8        (a) The following interests shall be listed by all
9    persons required to file:
10            (1) The name, address and type of practice of any
11        professional organization or individual professional
12        practice in which the person making the statement was
13        an officer, director, associate, partner or
14        proprietor, or served in any advisory capacity, from
15        which income in excess of $1200 was derived during the
16        preceding calendar year;
17            (2) The nature of professional services (other
18        than services rendered to the unit or units of
19        government in relation to which the person is required
20        to file) and the nature of the entity to which they
21        were rendered if fees exceeding $5,000 were received
22        during the preceding calendar year from the entity for
23        professional services rendered by the person making
24        the statement.
25            (3) The identity (including the address or legal
26        description of real estate) of any capital asset from

 

 

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1        which a capital gain of $5,000 or more was realized in
2        the preceding calendar year.
3            (4) The name of any unit of government which has
4        employed the person making the statement during the
5        preceding calendar year other than the unit or units
6        of government in relation to which the person is
7        required to file.
8            (5) The name of any entity from which a gift or
9        gifts, or honorarium or honoraria, valued singly or in
10        the aggregate in excess of $500, was received during
11        the preceding calendar year.
12        (b) The following interests shall also be listed by
13    persons listed in items (a) through (f), item (l), item
14    (n), and item (p) of Section 4A-101:
15            (1) The name and instrument of ownership in any
16        entity doing business in the State of Illinois, in
17        which an ownership interest held by the person at the
18        date of filing is in excess of $5,000 fair market value
19        or from which dividends of in excess of $1,200 were
20        derived during the preceding calendar year. (In the
21        case of real estate, location thereof shall be listed
22        by street address, or if none, then by legal
23        description). No time or demand deposit in a financial
24        institution, nor any debt instrument need be listed;
25            (2) Except for professional service entities, the
26        name of any entity and any position held therein from

 

 

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1        which income of in excess of $1,200 was derived during
2        the preceding calendar year, if the entity does
3        business in the State of Illinois. No time or demand
4        deposit in a financial institution, nor any debt
5        instrument need be listed.
6            (3) The identity of any compensated lobbyist with
7        whom the person making the statement maintains a close
8        economic association, including the name of the
9        lobbyist and specifying the legislative matter or
10        matters which are the object of the lobbying activity,
11        and describing the general type of economic activity
12        of the client or principal on whose behalf that person
13        is lobbying.
14        (c) The following interests shall also be listed by
15    persons listed in items (a) through (c) and item (e) of
16    Section 4A-101.5:
17            (1) The name and instrument of ownership in any
18        entity doing business with a unit of local government
19        in relation to which the person is required to file if
20        the ownership interest of the person filing is greater
21        than $5,000 fair market value as of the date of filing
22        or if dividends in excess of $1,200 were received from
23        the entity during the preceding calendar year. (In the
24        case of real estate, location thereof shall be listed
25        by street address, or if none, then by legal
26        description). No time or demand deposit in a financial

 

 

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1        institution, nor any debt instrument need be listed.
2            (2) Except for professional service entities, the
3        name of any entity and any position held therein from
4        which income in excess of $1,200 was derived during
5        the preceding calendar year if the entity does
6        business with a unit of local government in relation
7        to which the person is required to file. No time or
8        demand deposit in a financial institution, nor any
9        debt instrument need be listed.
10            (3) The name of any entity and the nature of the
11        governmental action requested by any entity which has
12        applied to a unit of local government in relation to
13        which the person must file for any license, franchise
14        or permit for annexation, zoning or rezoning of real
15        estate during the preceding calendar year if the
16        ownership interest of the person filing is in excess
17        of $5,000 fair market value at the time of filing or if
18        income or dividends in excess of $1,200 were received
19        by the person filing from the entity during the
20        preceding calendar year.
21        (d) The following interest shall also be listed by
22    persons listed in items (a) through (f) of Section 4A-101:
23    the name of any spouse or immediate family member living
24    with such person employed by a public utility in this
25    State and the name of the public utility that employs such
26    person.

 

 

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1    For the purposes of this Section, the unit of local
2government in relation to which a person is required to file
3under item (e) of Section 4A-101.5 shall be the unit of local
4government that contributes to the pension fund of which such
5person is a member of the board.
6(Source: P.A. 101-221, eff. 8-9-19.)
 
7    (5 ILCS 420/4A-103)  (from Ch. 127, par. 604A-103)
8    Sec. 4A-103. The statement of economic interests required
9by this Article to be filed with the Secretary of State or
10county clerk shall be filled in by typewriting or hand
11printing, shall be verified, dated, and signed by the person
12making the statement and shall contain substantially the
13following:
 
14
STATEMENT OF ECONOMIC INTERESTS

 
15INSTRUCTIONS:
16    You may find the following documents helpful to you in
17completing this form:
18        (1) federal income tax returns, including any related
19    schedules, attachments, and forms; and
20        (2) investment and brokerage statements.
21    To complete this form, you do not need to disclose
22specific amounts or values or report interests relating either
23to political committees registered with the Illinois State

 

 

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1Board of Elections or to political committees, principal
2campaign committees, or authorized committees registered with
3the Federal Election Commission.
4    The information you disclose will be available to the
5public.
6    You must answer all 6 questions. Certain questions will
7ask you to report any applicable assets or debts held in, or
8payable to, your name; held jointly by, or payable to, you with
9your spouse; or held jointly by, or payable to, you with your
10minor child. If you have any concerns about whether an
11interest should be reported, please consult your department's
12ethics officer, if applicable.
13    Please ensure that the information you provide is complete
14and accurate. If you need more space than the form allows,
15please attach additional pages for your response. If you are
16subject to the State Officials and Employees Ethics Act, your
17ethics officer must review your statement of economic
18interests before you file it. Failure to complete the
19statement in good faith and within the prescribed deadline may
20subject you to fines, imprisonment, or both.
 
21BASIC INFORMATION:
22Name:........................................................
23Job title:...................................................
24Office, department, or agency that requires you to file this
25form:........................................................

 

 

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1Other offices, departments, or agencies that require you to
2file a Statement of Economic Interests form: ................
3Full mailing address:........................................
4Preferred e-mail address (optional):.........................
 
5QUESTIONS:
6    1. If you have any single asset that was worth more than
7$10,000 as of the end of the preceding calendar year and is
8held in, or payable to, your name, held jointly by, or payable
9to, you with your spouse, or held jointly by, or payable to,
10you with your minor child, list such assets below. In the case
11of investment real estate, list the city and state where the
12investment real estate is located. If you do not have any such
13assets, list "none" below.
14.............................................................
15.............................................................
16.............................................................
17.............................................................
18.............................................................
19    2. Excluding the position for which you are required to
20file this form, list the source of any income in excess of
21$7,500 required to be reported during the preceding calendar
22year. If you sold an asset that produced more than $7,500 in
23capital gains in the preceding calendar year, list the name of
24the asset and the transaction date on which the sale or
25transfer took place. If you had no such sources of income or

 

 

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1assets, list "none" below.
 
2Source of Income / Name of Date Sold (if applicable)
3Asset
4............................... ...............................
5............................... ...............................
6............................... ...............................
7    3. Excluding debts incurred on terms available to the
8general public, such as mortgages, student loans, and credit
9card debts, if you owed any single debt in the preceding
10calendar year exceeding $10,000, list the creditor of the debt
11below. If you had no such debts, list "none" below.
12    List the creditor for all applicable debts owed by you,
13owed jointly by you with your spouse, or owed jointly by you
14with your minor child. In addition to the types of debts listed
15above, you do not need to report any debts to or from financial
16institutions or government agencies, such as debts secured by
17automobiles, household furniture or appliances, as long as the
18debt was made on terms available to the general public, debts
19to members of your family, or debts to or from a political
20committee registered with the Illinois State Board of
21Elections or any political committee, principal campaign
22committee, or authorized committee registered with the Federal
23Election Commission.
24.............................................................
25.............................................................

 

 

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1.............................................................
2.............................................................
3    4. List the name of each unit of government of which you or
4your spouse were an employee, contractor, or office holder
5during the preceding calendar year other than the unit or
6units of government in relation to which the person is
7required to file and the title of the position or nature of the
8contractual services.
 
9Name of Unit of GovernmentTitle or Nature of Services
10............................... ...............................
11............................... ...............................
12............................... ...............................
13    5. If you maintain an economic relationship with a
14lobbyist or if a member of your family is known to you to be a
15lobbyist registered with any unit of government in the State
16of Illinois, list the name of the lobbyist below and identify
17the nature of your relationship with the lobbyist. If you do
18not have an economic relationship with a lobbyist or a family
19member known to you to be a lobbyist registered with any unit
20of government in the State of Illinois, list "none" below.
 
21Name of LobbyistRelationship to Filer
22............................... ...............................
23............................... ...............................
24............................... ...............................

 

 

 

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1    6. List the name of each person, organization, or entity
2that was the source of a gift or gifts, or honorarium or
3honoraria, valued singly or in the aggregate in excess of $500
4received during the preceding calendar year and the type of
5gift or gifts, or honorarium or honoraria, excluding any gift
6or gifts from a member of your family that was not known to be
7a lobbyist registered with any unit of government in the State
8of Illinois. If you had no such gifts, list "none" below.
9.............................................................
10.............................................................
11.............................................................
12    7. List the name of any spouse or immediate family member
13living with the person making this statement employed by a
14public utility in this State and the name of the public utility
15that employs the relative.
16Name and Relation Public Utility
17............................... ...............................
18..............................................................
19..............................................................
20VERIFICATION:
21    "I declare that this statement of economic interests
22(including any attachments) has been examined by me and to the
23best of my knowledge and belief is a true, correct and complete
24statement of my economic interests as required by the Illinois
25Governmental Ethics Act. I understand that the penalty for

 

 

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1willfully filing a false or incomplete statement is a fine not
2to exceed $2,500 or imprisonment in a penal institution other
3than the penitentiary not to exceed one year, or both fine and
4imprisonment."
5Printed Name of Filer:.......................................
6Date:........................................................
7Signature:...................................................
 
8If this statement of economic interests requires ethics
9officer review prior to filing, the applicable ethics officer
10must complete the following:
 
11CERTIFICATION OF ETHICS OFFICER REVIEW:
12    "In accordance with law, as Ethics Officer, I reviewed
13this statement of economic interests prior to its filing."
 
14Printed Name of Ethics Officer:..............................
15Date:........................................................
16Signature:...................................................
17Preferred e-mail address (optional):.........................
18
STATEMENT OF ECONOMIC INTEREST
19
(TYPE OR HAND PRINT)
20.............................................................
21(name)
22.............................................................
23(each office or position of employment for which this

 

 

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1statement is filed)
2.............................................................
3(full mailing address)
4GENERAL DIRECTIONS:
5    The interest (if constructively controlled by the person
6making the statement) of a spouse or any other party, shall be
7considered to be the same as the interest of the person making
8the statement.
9    Campaign receipts shall not be included in this statement.
10    If additional space is needed, please attach supplemental
11listing.
12    1. List the name and instrument of ownership in any entity
13doing business in the State of Illinois, in which the
14ownership interest held by the person at the date of filing is
15in excess of $5,000 fair market value or from which dividends
16in excess of $1,200 were derived during the preceding calendar
17year. (In the case of real estate, location thereof shall be
18listed by street address, or if none, then by legal
19description.) No time or demand deposit in a financial
20institution, nor any debt instrument need be listed.
21Business EntityInstrument of Ownership
22..............................................................
23..............................................................
24..............................................................
25..............................................................
26    2. List the name, address and type of practice of any

 

 

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1professional organization in which the person making the
2statement was an officer, director, associate, partner or
3proprietor or served in any advisory capacity, from which
4income in excess of $1,200 was derived during the preceding
5calendar year.
6NameAddressType of Practice
7.............................................................
8.............................................................
9.............................................................
10    3. List the nature of professional services rendered
11(other than to the State of Illinois) to each entity from which
12income exceeding $5,000 was received for professional services
13rendered during the preceding calendar year by the person
14making the statement.
15.............................................................
16.............................................................
17    4. List the identity (including the address or legal
18description of real estate) of any capital asset from which a
19capital gain of $5,000 or more was realized during the
20preceding calendar year.
21.............................................................
22.............................................................
23    5. List the identity of any compensated lobbyist with whom
24the person making the statement maintains a close economic
25association, including the name of the lobbyist and specifying
26the legislative matter or matters which are the object of the

 

 

10200HB3666sam001- 183 -LRB102 13525 AMC 28481 a

1lobbying activity, and describing the general type of economic
2activity of the client or principal on whose behalf that
3person is lobbying.
4LobbyistLegislative MatterClient or Principal
5.............................................................
6.............................................................
7    6. List the name of any entity doing business in the State
8of Illinois from which income in excess of $1,200 was derived
9during the preceding calendar year other than for professional
10services and the title or description of any position held in
11that entity. (In the case of real estate, location thereof
12shall be listed by street address, or if none, then by legal
13description). No time or demand deposit in a financial
14institution nor any debt instrument need be listed.
15EntityPosition Held
16..............................................................
17..............................................................
18..............................................................
19    7. List the name of any unit of government which employed
20the person making the statement during the preceding calendar
21year other than the unit or units of government in relation to
22which the person is required to file.
23.............................................................
24.............................................................
25    8. List the name of any entity from which a gift or gifts,
26or honorarium or honoraria, valued singly or in the aggregate

 

 

10200HB3666sam001- 184 -LRB102 13525 AMC 28481 a

1in excess of $500, was received during the preceding calendar
2year.
3.............................................................
4VERIFICATION:
5    "I declare that this statement of economic interests
6(including any accompanying schedules and statements) has been
7examined by me and to the best of my knowledge and belief is a
8true, correct and complete statement of my economic interests
9as required by the Illinois Governmental Ethics Act. I
10understand that the penalty for willfully filing a false or
11incomplete statement shall be a fine not to exceed $1,000 or
12imprisonment in a penal institution other than the
13penitentiary not to exceed one year, or both fine and
14imprisonment."
15................ ..........................................
16(date of filing) (signature of person making the statement)
17(Source: P.A. 95-173, eff. 1-1-08.)
 
18    Section 90-10. The State Officials and Employees Ethics
19Act is amended by changing Section 5-50 as follows:
 
20    (5 ILCS 430/5-50)
21    Sec. 5-50. Ex parte communications; special government
22agents.
23    (a) This Section applies to ex parte communications made
24to any agency listed in subsection (e).

 

 

10200HB3666sam001- 185 -LRB102 13525 AMC 28481 a

1    (b) "Ex parte communication" means any written or oral
2communication by any person that imparts or requests material
3information or makes a material argument regarding potential
4action concerning regulatory, quasi-adjudicatory, investment,
5or licensing matters pending before or under consideration by
6the agency. "Ex parte communication" does not include the
7following: (i) statements by a person publicly made in a
8public forum; (ii) statements regarding matters of procedure
9and practice, such as format, the number of copies required,
10the manner of filing, and the status of a matter; and (iii)
11statements made by a State employee of the agency to the agency
12head or other employees of that agency.
13    (b-5) An ex parte communication received by an agency,
14agency head, or other agency employee from an interested party
15or his or her official representative or attorney shall
16promptly be memorialized and made a part of the record.
17    (c) An ex parte communication received by any agency,
18agency head, or other agency employee, other than an ex parte
19communication described in subsection (b-5), shall immediately
20be reported to that agency's ethics officer by the recipient
21of the communication and by any other employee of that agency
22who responds to the communication. The ethics officer shall
23require that the ex parte communication be promptly made a
24part of the record. The ethics officer shall promptly file the
25ex parte communication with the Executive Ethics Commission,
26including all written communications, all written responses to

 

 

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1the communications, and a memorandum prepared by the ethics
2officer stating the nature and substance of all oral
3communications, the identity and job title of the person to
4whom each communication was made, all responses made, the
5identity and job title of the person making each response, the
6identity of each person from whom the written or oral ex parte
7communication was received, the individual or entity
8represented by that person, any action the person requested or
9recommended, and any other pertinent information. The
10disclosure shall also contain the date of any ex parte
11communication.
12    (d) "Interested party" means a person or entity whose
13rights, privileges, or interests are the subject of or are
14directly affected by a regulatory, quasi-adjudicatory,
15investment, or licensing matter. For purposes of an ex parte
16communication received by either the Illinois Commerce
17Commission or the Illinois Power Agency, "interested party"
18also includes: (1) an organization comprised of 2 or more
19businesses, persons, nonprofit entities, or any combination
20thereof, that are working in concert to advance public policy
21advocated by the organization, or (2) any party selling
22renewable energy resources procured by the Illinois Power
23Agency pursuant to Section 16-111.5 of the Public Utilities
24Act and Section 1-75 of the Illinois Power Agency Act.
25    (e) This Section applies to the following agencies:
26Executive Ethics Commission

 

 

10200HB3666sam001- 187 -LRB102 13525 AMC 28481 a

1Illinois Commerce Commission
2Illinois Power Agency 
3Educational Labor Relations Board
4State Board of Elections
5Illinois Gaming Board
6Health Facilities and Services Review Board 
7Illinois Workers' Compensation Commission
8Illinois Labor Relations Board
9Illinois Liquor Control Commission
10Pollution Control Board
11Property Tax Appeal Board
12Illinois Racing Board
13Illinois Purchased Care Review Board
14Department of State Police Merit Board
15Motor Vehicle Review Board
16Prisoner Review Board
17Civil Service Commission
18Personnel Review Board for the Treasurer
19Merit Commission for the Secretary of State
20Merit Commission for the Office of the Comptroller
21Court of Claims
22Board of Review of the Department of Employment Security
23Department of Insurance
24Department of Professional Regulation and licensing boards
25  under the Department
26Department of Public Health and licensing boards under the

 

 

10200HB3666sam001- 188 -LRB102 13525 AMC 28481 a

1  Department
2Office of Banks and Real Estate and licensing boards under
3  the Office
4State Employees Retirement System Board of Trustees
5Judges Retirement System Board of Trustees
6General Assembly Retirement System Board of Trustees
7Illinois Board of Investment
8State Universities Retirement System Board of Trustees
9Teachers Retirement System Officers Board of Trustees
10    (f) Any person who fails to (i) report an ex parte
11communication to an ethics officer, (ii) make information part
12of the record, or (iii) make a filing with the Executive Ethics
13Commission as required by this Section or as required by
14Section 5-165 of the Illinois Administrative Procedure Act
15violates this Act.
16(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.)
 
17    Section 90-15. The Department of Commerce and Economic
18Opportunity Law of the Civil Administrative Code of Illinois
19is amended by adding Section 605-1075 as follows:
 
20    (20 ILCS 605/605-1075 new)
21    Sec. 605-1075. Energy Transition Assistance Fund.
22    (a) The General Assembly hereby declares that management
23of several economic development programs requires a
24consolidated funding source to improve resource efficiency.

 

 

10200HB3666sam001- 189 -LRB102 13525 AMC 28481 a

1The General Assembly specifically recognizes that properly
2serving communities and workers impacted by the energy
3transition requires that the Department of Commerce and
4Economic Opportunity have access to the resources required for
5the execution of the programs for workforce and contractor
6development, just transition investments and community
7support, and the implementation and administration of energy
8and justice efforts by the State.
9    (b) The Department shall be responsible for the
10administration of the Energy Transition Assistance Fund and
11shall allocate funding on the basis of priorities established
12in this Section. Each year, the Department shall determine the
13available amount of resources in the Fund that can be
14allocated to the programs identified in this Section, and
15allocate the funding accordingly. The Department shall, to the
16extent practical, consider both the short-term and long-term
17costs of the programs and allocate funding so that the
18Department is able to cover both the short-term and long-term
19costs of these programs using projected revenue.
20    The available funding for each year shall be allocated
21from the Fund in the following order of priority:
22        (1) for costs related to the Clean Jobs Workforce
23    Network Program, up to $21,000,000 annually prior to June
24    1, 2023 and $24,333,333 annually thereafter;
25        (2) for costs related to the Clean Energy Contractor
26    Incubator Program, up to $21,000,000 annually;

 

 

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1        (3) for costs related to the Clean Energy Primes
2    Contractor Accelerator Program, up to $9,000,000 annually;
3        (4) for costs related to the Barrier Reduction
4    Program, up to $21,000,000 annually;
5        (5) for costs related to the Jobs and Environmental
6    Justice Grant Program, up to $34,000,000 annually;
7        (6) for costs related to the Returning Residents Clean
8    Jobs Training Program, up to $6,000,000 annually;
9        (7) for costs related to Energy Transition Navigators,
10    up to $6,000,000 annually;
11        (8) for costs related to the Illinois Climate Works
12    Preapprenticeship Program, up to $10,000,000 annually;
13        (9) for costs related to Energy Transition Community
14    Support Grants, up to $40,000,000 annually;
15        (10) for costs related to the Displaced Energy Worker
16    Dependent Scholarship, upon request by the Illinois
17    Student Assistance Commission, up to $1,100,000 annually;
18        (11) up to $10,000,000 annually shall be transferred
19    to the Public Utilities Fund for use by the Illinois
20    Commerce Commission for costs of administering the changes
21    made to the Public Utilities Act by this amendatory Act of
22    the 102nd General Assembly;
23        (12) up to $4,000,000 annually shall be transferred to
24    the Illinois Power Agency Operations Fund for use by the
25    Illinois Power Agency; and
26        (13) for costs related to the Clean Energy Jobs and

 

 

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1    Justice Fund, up to $1,000,000 annually.
2    The Department is authorized to utilize up to 10% of the
3Energy Transition Assistance Fund for administrative and
4operational expenses to implement the requirements of this
5Act.
6    (c) Within 30 days after the effective date of this
7amendatory Act of the 102nd General Assembly, each electric
8utility serving more than 500,000 customers in the State shall
9report to the Department its total kilowatt-hours of energy
10delivered during the 12 months ending on the immediately
11preceding May 31. By October 31, 2021 and each October 31
12thereafter, each electric utility serving more than 500,000
13customers in the State shall report to the Department its
14total kilowatt-hours of energy delivered during the 12 months
15ending on the immediately preceding May 31.
16    (d) The Department shall, within 60 days after the
17effective date of this amendatory Act of the 102nd General
18Assembly:
19        (1) determine the amount necessary, but not more than
20    $140,000,000, to meet the funding needs of the programs
21    reliant upon the Energy Transition Assistance Fund as a
22    revenue source for the period between the effective date
23    of this amendatory Act of the 102nd General Assembly and
24    December 31, 2021;
25        (2) determine, based on the kilowatt-hour deliveries
26    for the 12 months ending May 31, 2021 reported by the

 

 

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1    electric utilities under subsection (c), the total energy
2    transition assistance charge to be allocated to each
3    electric utility for the period between the effective date
4    of this amendatory Act of the 102nd General Assembly and
5    December 31, 2021; and
6        (3) report the total energy transition assistance
7    charge applicable until December 31, 2021 to each electric
8    utility serving more than 500,000 customers in the State
9    and the Illinois Commerce Commission for purposes of
10    filing the tariff pursuant to Section 16-108.30 of the
11    Public Utilities Act.
12    (e) The Department shall by November 30, 2021, and each
13November 30 thereafter:
14        (1) determine the amount necessary, but not more than
15    $140,000,000, to meet the funding needs of the programs
16    reliant upon the Energy Transition Assistance Fund as a
17    revenue source for the immediately following calendar
18    year;
19        (2) determine, based on the kilowatt-hour deliveries
20    for the 12 months ending on the immediately preceding May
21    31 reported to it by the electric utilities under
22    subsection (c), the total energy transition assistance
23    charge to be allocated to each electric utility for the
24    immediately following calendar year; and
25        (3) report the energy transition assistance charge
26    applicable for the immediately following calendar year to

 

 

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1    each electric utility serving more than 500,000 customers
2    in the State and the Illinois Commerce Commission for
3    purposes of filing the tariff pursuant to Section
4    16-108.30 of the Public Utilities Act.
5    (f) The energy transition assistance charge may not exceed
6$140,000,000 annually. If, at the end of the calendar year,
7any surplus remains in the Energy Transition Assistance Fund,
8the Department may allocate the surplus from the fund in the
9following order of priority:
10        (1) for costs related to the development of the
11    Stretch Energy Codes and other standards at the Capital
12    Development Board, up to $500,000 annually, at the request
13    of the Board;
14        (2) up to $7,000,000 annually shall be transferred to
15    the Energy Efficiency Trust Fund and Clean Air Act Permit
16    Fund for use by the Environmental Protection Agency for
17    costs related to energy efficiency and weatherization, and
18    costs of implementation, administration, and enforcement
19    of the Clean Air Act; and
20        (3) for costs related to State fleet electrification
21    at the Department of Central Management Services, up to
22    $10,000,000 annually, at the request of the Department.
 
23    Section 90-20. The Electric Vehicle Act is amended by
24changing Section 15 and by adding Sections 40, 45, 50, 55, and
2560 as follows:
 

 

 

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1    (20 ILCS 627/15)
2    Sec. 15. Electric Vehicle Coordinator. The Governor, with
3the advice and consent of the Senate, shall appoint a person
4within the Illinois Environmental Protection Agency Department
5of Commerce and Economic Opportunity to serve as the Electric
6Vehicle Coordinator for the State of Illinois. This person may
7be an existing employee with other duties. The Coordinator
8shall act as a point person for electric vehicle-related and
9electric vehicle charging-related electric vehicle related
10policies and activities in Illinois, including, but not
11limited to, the issuance of electric vehicle rebates for
12consumers and electric vehicle charging rebates for
13organizations and companies.
14(Source: P.A. 97-89, eff. 7-11-11.)
 
15    (20 ILCS 627/40 new)
16    Sec. 40. Rulemaking; resources. The Agency shall adopt
17rules as necessary and dedicate sufficient resources to
18implement Sections 45, 50, and 55.
 
19    (20 ILCS 627/45 new)
20    Sec. 45. Beneficial electrification.
21    (a) It is the intent of the General Assembly to decrease
22reliance on fossil fuels, reduce pollution from the
23transportation sector, increase access to electrification for

 

 

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1all consumers, and ensure that electric vehicle adoption and
2increased electricity usage and demand do not place
3significant additional burdens on the electric system and
4create benefits for Illinois residents.
5        (1) Illinois should increase the adoption of electric
6    vehicles in the State to 1,000,000 by 2030.
7        (2) Illinois should strive to be the best state in the
8    nation in which to drive and manufacture electric
9    vehicles.
10        (3) Widespread adoption of electric vehicles is
11    necessary to electrify the transportation sector,
12    diversify the transportation fuel mix, drive economic
13    development, and protect air quality.
14        (4) Accelerating the adoption of electric vehicles
15    will drive the decarbonization of Illinois' transportation
16    sector.
17        (5) Expanded infrastructure investment will help
18    Illinois more rapidly decarbonize the transportation
19    sector.
20        (6) Statewide adoption of electric vehicles requires
21    increasing access to electrification for all consumers.
22        (7) Widespread adoption of electric vehicles requires
23    increasing public access to charging equipment throughout
24    Illinois, especially in low-income and environmental
25    justice communities, where levels of air pollution burden
26    tend to be higher.

 

 

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1        (8) Widespread adoption of electric vehicles and
2    charging equipment has the potential to provide customers
3    with fuel cost savings and electric utility customers with
4    cost-saving benefits.
5        (9) Widespread adoption of electric vehicles can
6    improve an electric utility's electric system efficiency
7    and operational flexibility, including the ability of the
8    electric utility to integrate renewable energy resources
9    and make use of off-peak generation resources that support
10    the operation of charging equipment.
11        (10) Widespread adoption of electric vehicles should
12    stimulate innovation, competition, and increased choices
13    in charging equipment and networks and should also attract
14    private capital investments and create high-quality jobs
15    in Illinois.
16    (b) As used in this Section:
17    "Agency" means the Environmental Protection Agency.
18    "Beneficial electrification programs" means programs that
19lower carbon dioxide emissions, replace fossil fuel use,
20create cost savings, improve electric grid operations, reduce
21increases to peak demand, improve electric usage load shape,
22and align electric usage with times of renewable generation.
23All beneficial electrification programs shall provide for
24incentives such that customers are induced to use electricity
25at times of low overall system usage or at times when
26generation from renewable energy sources is high. "Beneficial

 

 

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1electrification programs" include a portfolio of the
2following:
3        (1) time-of-use electric rates;
4        (2) hourly pricing electric rates;
5        (3) optimized charging programs or programs that
6    encourage charging at times beneficial to the electric
7    grid;
8        (4) optional demand-response programs specifically
9    related to electrification efforts;
10        (5) incentives for electrification and associated
11    infrastructure tied to using electricity at off-peak
12    times;
13        (6) incentives for electrification and associated
14    infrastructure targeted to medium-duty and heavy-duty
15    vehicles used by transit agencies;
16        (7) incentives for electrification and associated
17    infrastructure targeted to school buses;
18        (8) incentives for electrification and associated
19    infrastructure for medium-duty and heavy-duty government
20    and private fleet vehicles;
21        (9) low-income programs that provide access to
22    electric vehicles for communities where car ownership or
23    new car ownership is not common;
24        (10) incentives for electrification in eligible
25    communities;
26        (11) incentives or programs to enable quicker adoption

 

 

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1    of electric vehicles by developing public charging
2    stations in dense areas, workplaces, and low-income
3    communities;
4        (12) incentives or programs to develop electric
5    vehicle infrastructure that minimizes range anxiety,
6    filling the gaps in deployment, particularly in rural
7    areas and along highway corridors;
8        (13) incentives to encourage the development of
9    electrification and renewable energy generation in close
10    proximity in order to reduce grid congestion;
11        (14) offer support to low-income communities who are
12    experiencing financial and accessibility barriers such
13    that electric vehicle ownership is not an option; and
14        (15) other such programs as defined by the Commission.
15    "Black, indigenous, and people of color" or "BIPOC" means
16people who are members of the groups described in
17subparagraphs (a) through (e) of paragraph (A) of subsection
18(1) of Section 2 of the Business Enterprise for Minorities,
19Women, and Persons with Disabilities Act.
20    "Commission" means the Illinois Commerce Commission.
21    "Coordinator" means the Electric Vehicle Coordinator.
22    "Council" means the Electric Vehicle Advisory Council.
23    "Electric vehicle" means a vehicle that is exclusively
24powered by and refueled by electricity, must be plugged in to
25charge, and is licensed to drive on public roadways. "Electric
26vehicle" does not include electric motorcycles or hybrid

 

 

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1electric vehicles and extended-range electric vehicles that
2are also equipped with conventional fueled propulsion or
3auxiliary engines.
4    "Electric vehicle charging station" means a station that
5delivers electricity from a source outside an electric vehicle
6into one or more electric vehicles.
7    "Environmental justice communities" means the definition
8of that term based on existing methodologies and findings,
9used and as may be updated by the Illinois Power Agency and its
10program administrator in the Illinois Solar for All Program.
11    "Equity investment eligible community" or "eligible
12community" means the geographic areas throughout Illinois
13which would most benefit from equitable investments by the
14State designed to combat discrimination and foster sustainable
15economic growth. Specifically, "eligible community" means the
16following areas:
17        (1) areas where residents have been historically
18    excluded from economic opportunities, including
19    opportunities in the energy sector, as defined pursuant to
20    Section 10-40 of the Cannabis Regulation and Tax Act; and
21        (2) areas where residents have been historically
22    subject to disproportionate burdens of pollution,
23    including pollution from the energy sector, as established
24    by environmental justice communities as defined by the
25    Illinois Power Agency pursuant to Illinois Power Agency
26    Act, excluding any racial or ethnic indicators.

 

 

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1    "Equity investment eligible person" or "eligible person"
2means the persons who would most benefit from equitable
3investments by the State designed to combat discrimination and
4foster sustainable economic growth. Specifically, "eligible
5person" means the following people:
6        (1) persons whose primary residence is in an equity
7    investment eligible community;
8        (2) persons who are graduates of or currently enrolled
9    in the foster care system; or
10        (3) persons who were formerly incarcerated.
11    "Low-income" means persons and families whose income does
12not exceed 80% of the state median income for the current State
13fiscal year as established by the U.S. Department of Health
14and Human Services.
15    "Make-ready infrastructure" means the electrical and
16construction work necessary between the distribution circuit
17to the connection point of charging equipment.
18    "Optimized charging programs" mean programs whereby owners
19of electric vehicles can set their vehicles to be charged
20based on the electric system's current demand, retail or
21wholesale market rates, incentives, the carbon or other
22pollution intensity of the electric generation mix, the
23provision of grid services, efficient use of the electric
24grid, or the availability of clean energy generation.
25Optimized charging programs may be operated by utilities as
26well as third parties.

 

 

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1    (c) The Commission shall initiate a workshop process no
2later than November 30, 2021 for the purpose of soliciting
3input on the design of beneficial electrification programs
4that the utility shall offer. The workshop shall be
5coordinated by the Staff of the Commission, or a facilitator
6retained by Staff, and shall be organized and facilitated in a
7manner that encourages representation from diverse
8stakeholders, including stakeholders representing
9environmental justice and low-income communities, and ensures
10equitable opportunities for participation, without requiring
11formal intervention or representation by an attorney.
12    The stakeholder workshop process shall take into
13consideration the benefits of electric vehicle adoption and
14barriers to adoption, including:
15        (1) the benefit of lower bills for customers who do
16    not charge electric vehicles;
17        (2) benefits to the distribution system from electric
18    vehicle usage;
19        (3) the avoidance and reduction in capacity costs from
20    optimized charging and off-peak charging;
21        (4) energy price and cost reductions;
22        (5) environmental benefits, including greenhouse gas
23    emission and other pollution reductions;
24        (6) current barriers to mass-market adoption,
25    including cost of ownership and availability of charging
26    stations;

 

 

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1        (7) current barriers to increasing access among
2    populations that have limited access to electric vehicle
3    ownership, communities significantly impacted by
4    transportation-related pollution, and market segments that
5    create disproportionate pollution impacts;
6        (8) benefits of and incentives for medium-duty and
7    heavy-duty fleet vehicle electrification;
8        (9) opportunities for eligible communities to benefit
9    from electrification;
10        (10) geographic areas and market segments that should
11    be prioritized for electrification infrastructure
12    investment.
13    The workshops shall consider barriers, incentives,
14enabling rate structures, and other opportunities for the bill
15reduction and environmental benefits described in this
16subsection.
17    The workshop process shall conclude no later than February
1828, 2022. Following the workshop, the Staff of the Commission,
19or the facilitator retained by the Staff, shall prepare and
20submit a report, no later than March 31, 2022, to the
21Commission that includes, but is not limited to,
22recommendations for transportation electrification investment
23or incentives in the following areas:
24        (i) publicly accessible Level 2 and fast-charging
25    stations, with a focus on bringing access to
26    transportation electrification in densely populated areas

 

 

10200HB3666sam001- 203 -LRB102 13525 AMC 28481 a

1    and workplaces within eligible communities;
2        (ii) medium-duty and heavy-duty charging
3    infrastructure used by government and private fleet
4    vehicles that serve or travel through environmental
5    justice or eligible communities;
6        (iii) medium-duty and heavy-duty charging
7    infrastructure used in school bus operations, whether
8    private or public, that primarily serve governmental or
9    educational institutions, and also serve or travel through
10    environmental justice or eligible communities;
11        (iv) public transit medium-duty and heavy-duty
12    charging infrastructure, developed in consultation with
13    public transportation agencies; and
14        (v) publicly accessible Level 2 and fast-charging
15    stations targeted to fill gaps in deployment, particularly
16    in rural areas and along State highway corridors.
17    The report must also identify the participants in the
18process, program designs proposed during the process,
19estimates of the costs and benefits of proposed programs, any
20material issues that remained unresolved at the conclusions of
21such process, and any recommendations for workshop process
22improvements. The report shall be used by the Commission to
23inform and evaluate the cost effectiveness and achievement of
24goals within the submitted Beneficial Electrification Plans.
25    (d) No later than July 1, 2022, electric utilities serving
26greater than 500,000 customers in the State shall file a

 

 

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1Beneficial Electrification Plan with the Illinois Commerce
2Commission for programs that start no later than January 1,
32023. The plan shall take into consideration recommendations
4from the workshop report described in this Section. Within 45
5days after the filing of the Beneficial Electrification Plan,
6the Commission shall, with reasonable notice, open an
7investigation to consider whether the plan meets the
8objectives and contains the information required by this
9Section. The Commission shall determine if the proposed plan
10is cost-beneficial and in the public interest. When
11considering if the plan is in the public interest and
12determining appropriate levels of cost recovery for
13investments and expenditures related to programs proposed by
14an electric utility, the Commission shall consider whether the
15investments and other expenditures are designed and reasonably
16expected to:
17        (1) maximize total energy cost savings and rate
18    reductions so that nonparticipants can benefit;
19        (2) address environmental justice interests by
20    ensuring there are significant opportunities for residents
21    and businesses in eligible communities to directly
22    participate in and benefit from beneficial electrification
23    programs;
24        (3) support at least a 40% investment of make-ready
25    infrastructure incentives to facilitate the rapid
26    deployment of charging equipment in or serving

 

 

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1    environmental justice, low-income, and eligible
2    communities; however, nothing in this subsection is
3    intended to require a specific amount of spending in a
4    particular geographic area;
5        (4) support at least a 5% investment target in
6    electrifying medium-duty and heavy-duty school bus and
7    diesel public transportation vehicles located in or
8    serving environmental justice, low-income, and eligible
9    communities in order to provide those communities and
10    businesses with greater economic investment,
11    transportation opportunities, and a cleaner environment so
12    they can directly benefit from transportation
13    electrification efforts; however, nothing in this
14    subsection is intended to require a specific amount of
15    spending in a particular geographic area;
16        (5) stimulate innovation, competition, private
17    investment, and increased consumer choices in electric
18    vehicle charging equipment and networks;
19        (6) contribute to the reduction of carbon emissions
20    and meeting air quality standards, including improving air
21    quality in eligible communities who disproportionately
22    suffer from emissions from the medium-duty and heavy-duty
23    transportation sector;
24        (7) support the efficient and cost-effective use of
25    the electric grid in a manner that supports electric
26    vehicle charging operations; and

 

 

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1        (8) provide resources to support private investment in
2    charging equipment for uses in public and private charging
3    applications, including residential, multi-family, fleet,
4    transit, community, and corridor applications.
5    The plan shall be determined to be cost-beneficial if the
6total cost of beneficial electrification expenditures is less
7than the net present value of increased electricity costs
8(defined as marginal avoided energy, avoided capacity, and
9avoided transmission and distribution system costs) avoided by
10programs under the plan, the net present value of reductions
11in other customer energy costs, net revenue from all electric
12charging in the service territory, and the societal value of
13reduced carbon emissions and surface-level pollutants,
14particularly in environmental justice communities. The
15calculation of costs and benefits should be based on net
16impacts, including the impact on customer rates.
17    The Commission shall approve, approve with modifications,
18or reject the plan within 270 days from the date of filing. The
19Commission may approve the plan if it finds that the plan will
20achieve the goals described in this Section and contains the
21information described in this Section. Proceedings under this
22Section shall proceed according to the rules provided by
23Article IX of the Public Utilities Act. Information contained
24in the approved plan shall be considered part of the record in
25any Commission proceeding under Section 16-107.6 of the Public
26Utilities Act, provided that a final order has not been

 

 

10200HB3666sam001- 207 -LRB102 13525 AMC 28481 a

1entered prior to the initial filing date. The Beneficial
2Electrification Plan shall specifically address, at a minimum,
3the following:
4        (i) make-ready investments to facilitate the rapid
5    deployment of charging equipment throughout the State,
6    facilitate the electrification of public transit and other
7    vehicle fleets in the light-duty, medium-duty, and
8    heavy-duty sectors, and align with Agency-issued rebates
9    for charging equipment;
10        (ii) the development and implementation of beneficial
11    electrification programs, including time-of-use rates and
12    their benefit for electric vehicle users and for all
13    customers, optimized charging programs to achieve savings
14    identified, and new contracts and compensation for
15    services in those programs, through signals that allow
16    electric vehicle charging to respond to local system
17    conditions, manage critical peak periods, serve as a
18    demand response or peak resource, and maximize renewable
19    energy use and integration into the grid;
20        (iii) optional commercial tariffs utilizing
21    alternatives to traditional demand-based rate structures
22    to facilitate charging for light duty, heavy duty, and
23    fleet electric vehicles;
24        (iv) financial and other challenges to electric
25    vehicle usage in low-income communities, and strategies
26    for overcoming those challenges, particularly in

 

 

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1    communities and for people for whom car ownership is not
2    an option;
3        (v) methods of minimizing ratepayer impacts and
4    exempting or minimizing, to the extent possible,
5    low-income ratepayers from the costs associated with
6    facilitating the expansion of electric vehicle charging;
7        (vi) plans to increase access to Level 3 Public
8    Electric Vehicle Charging Infrastructure to serve vehicles
9    that need quicker charging times and vehicles of persons
10    who have no other access to charging infrastructure,
11    regardless of whether those projects participate in
12    optimized charging programs;
13        (vii) whether to establish charging standards for type
14    of plugs eligible for investment or incentive programs,
15    and if so, what standards;
16        (viii) opportunities for coordination and cohesion
17    with electric vehicle and electric vehicle charging
18    equipment incentives established by any agency,
19    department, board, or commission of the State, any other
20    unit of government in the State, any national programs, or
21    any unit of the federal government;
22        (ix) ideas for the development of online tools,
23    applications, and data sharing that provide essential
24    information to those charging electric vehicles, and
25    enable an automated charging response to price signals,
26    emission signals, real-time renewable generation

 

 

10200HB3666sam001- 209 -LRB102 13525 AMC 28481 a

1    production, and other Commission-approved or
2    customer-desired indicators of beneficial charging times;
3    and
4        (x) customer education, outreach, and incentive
5    programs that increase awareness of the programs and the
6    benefits of transportation electrification, including
7    direct outreach to eligible communities;
8    (e) Proceedings under this Section shall proceed according
9to the rules provided by Article IX of the Public Utilities
10Act. Information contained in the approved plan shall be
11considered part of the record in any Commission proceeding
12under Section 16-107.6 of the Public Utilities Act, provided
13that a final order has not been entered prior to the initial
14filing date.
15    (f) The utility shall file an update to the plan on July 1,
162024 and every 3 years thereafter. This update shall describe
17transportation investments made during the prior plan period,
18investments planned for the following 24 months, and updates
19to the information required by this Section. Beginning with
20the first update, the utility shall develop the plan in
21conjunction with the distribution system planning process
22described in Section 16-105.17, including incorporation of
23stakeholder feedback from that process.
24    (g) Within 35 days after the utility files its report, the
25Commission shall, upon its own initiative, open an
26investigation regarding the utility's plan update to

 

 

10200HB3666sam001- 210 -LRB102 13525 AMC 28481 a

1investigate whether the objectives described in this Section
2are being achieved. The Commission shall determine whether
3investment targets should be increased based on achievement of
4spending goals outlined in the Beneficial Electrification Plan
5and consistency with outcomes directed in the plan stakeholder
6workshop report. If the Commission finds, after notice and
7hearing, that the utility's plan is materially deficient, the
8Commission shall issue an order requiring the utility to
9devise a corrective action plan, subject to Commission
10approval, to bring the plan into compliance with the goals of
11this Section. The Commission's order shall be entered within
12270 days after the utility files its annual report. The
13contents of a plan filed under this Section shall be available
14for evidence in Commission proceedings. However, omission from
15an approved plan shall not render any future utility
16expenditure to be considered unreasonable or imprudent. The
17Commission may, upon sufficient evidence, allow expenditures
18that were not part of any particular distribution plan. The
19Commission shall consider revenues from electric vehicles in
20the utility's service territory in evaluating the retail rate
21impact. The retail rate impact from the development of
22electric vehicle infrastructure shall not exceed 1% per year
23of the total annual revenue requirements of the utility.
24    (h) In meeting the requirements of this Section, the
25utility shall demonstrate efforts to increase the use of
26contractors and electric vehicle charging station installers

 

 

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1that meet multiple workforce equity actions, including, but
2not limited to:
3        (1) the business is headquartered in or the person
4    resides in an eligible community;
5        (2) the business is majority owned by eligible person
6    or the contractor is an eligible person;
7        (3) the business or person is certified by another
8    municipal, State, federal, or other certification for
9    disadvantaged businesses;
10        (4) the business or person meets the eligibility
11    criteria for a certification program such as:
12            (A) certified under Section 2 of the Business
13        Enterprise for Minorities, Women, and Persons with
14        Disabilities Act;
15            (B) certified by another municipal, State,
16        federal, or other certification for disadvantaged
17        businesses;
18            (C) submits an affidavit showing that the vendor
19        meets the eligibility criteria for a certification
20        program such as those in items (A) and (B); or
21            (D) if the vendor is a nonprofit, meets any of the
22        criteria in those in item (A), (B), or (C) with the
23        exception that the nonprofit is not required to meet
24        any criteria related to being a for-profit entity, or
25        is controlled by a board of directors that consists of
26        51% or greater individuals who are equity investment

 

 

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1        eligible persons; or
2            (E) ensuring that program implementation
3        contractors and electric vehicle charging station
4        installers pay employees working on electric vehicle
5        charging installations at or above the prevailing wage
6        rate when such a wage rate has been published by the
7        Department of Labor and pay employees working on
8        energy efficiency programs at or above the median wage
9        rate for a similar job description in the nearest
10        metropolitan area when there is no applicable
11        published prevailing wage rate.
12    If necessary, utilities may conduct surveys to establish
13the median wage rate for a given job description. Utilities
14shall establish reporting procedures for vendors that ensure
15compliance with this subsection, but are structured to avoid,
16wherever possible, placing an undue administrative burden on
17vendors.
18    (i) Program data collection.
19        (1) In order to ensure that the benefits provided to
20    Illinois residents and business by the clean energy
21    economy are equitably distributed across the State, it is
22    necessary to accurately measure the applicants and
23    recipients of this Program. The purpose of this paragraph
24    is to require the implementing utilities to collect all
25    data from Program applicants and beneficiaries to track
26    and improve equitable distribution of benefits across

 

 

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1    Illinois communities. The further purpose is to measure
2    any potential impact of racial discrimination on the
3    distribution of benefits and provide the utilities the
4    information necessary to correct any discrimination
5    through methods consistent with State and federal law.
6        (2) The implementing utilities shall collect
7    demographic and geographic data for each applicant and
8    each person or business awarded benefits or contracts
9    under this Program.
10        (3) The implementing utilities shall collect the
11    following information from applicants and Program or
12    procurement beneficiaries where applicable:
13            (A) demographic information, including racial or
14        ethnic identity for real persons employed, contracted,
15        or subcontracted through the program;
16            (B) demographic information, including racial or
17        ethnic identity of business owners;
18            (C) geographic location of the residency of real
19        persons or geographic location of the headquarters for
20        businesses; and
21            (D) any other information necessary for the
22        purpose of achieving the purpose of this paragraph.
23        (4) The utility shall publish, at least annually,
24    aggregated information on the demographics of program and
25    procurement applicants and beneficiaries. The utilities
26    shall protect personal and confidential business

 

 

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1    information as necessary.
2        (5) The utilities shall conduct a regular review
3    process to confirm the accuracy of reported data.
4        (6) On a quarterly basis, utilities shall collect data
5    necessary to ensure compliance with this Section and shall
6    communicate progress toward compliance to program
7    implementation contractors and electric vehicle charging
8    station installation vendors.
9        (7) Utilities filing Beneficial Electrification Plans
10    under this Section shall report annually to the Illinois
11    Commerce Commission and the General Assembly on how
12    hiring, contracting, job training, and other practices
13    related to its Beneficial electrification programs enhance
14    the diversity of vendors working on such programs. These
15    reports must include data on vendor and employee
16    diversity.
17    (j) The provisions of this Section are severable under
18Section 1.31 of the Statute on Statutes.
 
19    (20 ILCS 627/50 new)
20    Sec. 50. Plan updates. The utility shall file an update to
21the plan on July 1, 2024 and every 3 years thereafter. This
22update shall describe transportation investments made during
23the prior plan period, investments planned for the following
2424 months, and updates to the information required by this
25Section. Within 35 days after the utility files its report,

 

 

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1the Commission shall, upon its own initiative, open an
2investigation regarding the utility's plan update to
3investigate whether the objectives described in this Section
4are being achieved. If the Commission finds, after notice and
5hearing, that the utility's plan is materially deficient, the
6Commission shall issue an order requiring the utility to
7devise a corrective action plan, subject to Commission
8approval, to bring the plan into compliance with the goals of
9this Section. The Commission's order shall be entered within
10270 days after the utility files its annual report.
11    The contents of a plan filed under this Section shall be
12available for evidence in Commission proceedings. However,
13omission from an approved plan shall not render any future
14utility expenditure to be considered unreasonable or
15imprudent. The Commission may, upon sufficient evidence, allow
16expenditures that were not part of any particular distribution
17plan.
 
18    (20 ILCS 627/55 new)
19    Sec. 55. Charging rebate program.
20    (a) In order to substantially offset the installation
21costs of electric vehicle charging infrastructure, beginning
22July 1, 2022, and continuing as long as funds are available,
23the Agency shall issue rebates, consistent with the
24Commission-approved Beneficial Electrification Plans in
25accordance with Section 45, to public and private

 

 

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1organizations and companies to install and maintain Level 2 or
2Level 3 charging stations.
3    (b) The Agency shall award rebates or grants that fund up
4to 80% of the cost of the installation of charging stations.
5The Agency shall award additional incentives per port for
6every charging station installed in an eligible community and
7every charging station located to support eligible persons. In
8order to be eligible to receive a rebate or grant, the
9organization or company must submit an application to the
10Agency and commit to paying the prevailing wage for the
11installation project. The Agency shall by rule provide
12application and other programmatic details and requirements,
13including additional incentives for eligible communities. The
14Agency may determine per port or project caps based on a review
15of best practices and stakeholder engagement. The Agency shall
16accept applications on a rolling basis and shall award rebates
17or grants within 60 days of each application. The Agency may
18not award rebates or grants to an organization or company that
19does not pay the prevailing wage for the installation of a
20charging station for which it seeks a rebate or grant.
 
21    (20 ILCS 627/60 new)
22    Sec. 60. Study on loss infrastructure funds and
23replacement options. The Illinois Department of Transportation
24shall conduct a study to be delivered to the members of the
25Illinois General Assembly and made available to the public no

 

 

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1later than September 30, 2022. The study shall consider how
2the proliferation of electric vehicles will adversely affect
3resources needed for transportation infrastructure and take
4into consideration any relevant federal actions. The study
5shall identify the potential revenue loss and offer multiple
6options for replacing those lost revenues. The Illinois
7Department of Transportation shall collaborate with
8organizations representing businesses involved in designing
9and building transportation infrastructure, organized labor,
10the general business community, and users of the system. In
11addition, the Illinois Department of Transportation may
12collaborate with other state agencies, including but not
13limited to the Illinois Secretary of State and the Illinois
14Department of Revenue.
15    This Section is repealed on January 1, 2024.
 
16    Section 90-23. The Illinois Enterprise Zone Act is amended
17by changing Section 5.5 as follows:
 
18    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
19    Sec. 5.5. High Impact Business.
20    (a) In order to respond to unique opportunities to assist
21in the encouragement, development, growth, and expansion of
22the private sector through large scale investment and
23development projects, the Department is authorized to receive
24and approve applications for the designation of "High Impact

 

 

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1Businesses" in Illinois subject to the following conditions:
2        (1) such applications may be submitted at any time
3    during the year;
4        (2) such business is not located, at the time of
5    designation, in an enterprise zone designated pursuant to
6    this Act;
7        (3) the business intends to do one or more of the
8    following:
9            (A) the business intends to make a minimum
10        investment of $12,000,000 which will be placed in
11        service in qualified property and intends to create
12        500 full-time equivalent jobs at a designated location
13        in Illinois or intends to make a minimum investment of
14        $30,000,000 which will be placed in service in
15        qualified property and intends to retain 1,500
16        full-time retained jobs at a designated location in
17        Illinois. The business must certify in writing that
18        the investments would not be placed in service in
19        qualified property and the job creation or job
20        retention would not occur without the tax credits and
21        exemptions set forth in subsection (b) of this
22        Section. The terms "placed in service" and "qualified
23        property" have the same meanings as described in
24        subsection (h) of Section 201 of the Illinois Income
25        Tax Act; or
26            (B) the business intends to establish a new

 

 

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1        electric generating facility at a designated location
2        in Illinois. "New electric generating facility", for
3        purposes of this Section, means a newly-constructed
4        electric generation plant or a newly-constructed
5        generation capacity expansion at an existing electric
6        generation plant, including the transmission lines and
7        associated equipment that transfers electricity from
8        points of supply to points of delivery, and for which
9        such new foundation construction commenced not sooner
10        than July 1, 2001. Such facility shall be designed to
11        provide baseload electric generation and shall operate
12        on a continuous basis throughout the year; and (i)
13        shall have an aggregate rated generating capacity of
14        at least 1,000 megawatts for all new units at one site
15        if it uses natural gas as its primary fuel and
16        foundation construction of the facility is commenced
17        on or before December 31, 2004, or shall have an
18        aggregate rated generating capacity of at least 400
19        megawatts for all new units at one site if it uses coal
20        or gases derived from coal as its primary fuel and
21        shall support the creation of at least 150 new
22        Illinois coal mining jobs, or (ii) shall be funded
23        through a federal Department of Energy grant before
24        December 31, 2010 and shall support the creation of
25        Illinois coal-mining jobs, or (iii) shall use coal
26        gasification or integrated gasification-combined cycle

 

 

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1        units that generate electricity or chemicals, or both,
2        and shall support the creation of Illinois coal-mining
3        jobs. The business must certify in writing that the
4        investments necessary to establish a new electric
5        generating facility would not be placed in service and
6        the job creation in the case of a coal-fueled plant
7        would not occur without the tax credits and exemptions
8        set forth in subsection (b-5) of this Section. The
9        term "placed in service" has the same meaning as
10        described in subsection (h) of Section 201 of the
11        Illinois Income Tax Act; or
12            (B-5) the business intends to establish a new
13        gasification facility at a designated location in
14        Illinois. As used in this Section, "new gasification
15        facility" means a newly constructed coal gasification
16        facility that generates chemical feedstocks or
17        transportation fuels derived from coal (which may
18        include, but are not limited to, methane, methanol,
19        and nitrogen fertilizer), that supports the creation
20        or retention of Illinois coal-mining jobs, and that
21        qualifies for financial assistance from the Department
22        before December 31, 2010. A new gasification facility
23        does not include a pilot project located within
24        Jefferson County or within a county adjacent to
25        Jefferson County for synthetic natural gas from coal;
26        or

 

 

10200HB3666sam001- 221 -LRB102 13525 AMC 28481 a

1            (C) the business intends to establish production
2        operations at a new coal mine, re-establish production
3        operations at a closed coal mine, or expand production
4        at an existing coal mine at a designated location in
5        Illinois not sooner than July 1, 2001; provided that
6        the production operations result in the creation of
7        150 new Illinois coal mining jobs as described in
8        subdivision (a)(3)(B) of this Section, and further
9        provided that the coal extracted from such mine is
10        utilized as the predominant source for a new electric
11        generating facility. The business must certify in
12        writing that the investments necessary to establish a
13        new, expanded, or reopened coal mine would not be
14        placed in service and the job creation would not occur
15        without the tax credits and exemptions set forth in
16        subsection (b-5) of this Section. The term "placed in
17        service" has the same meaning as described in
18        subsection (h) of Section 201 of the Illinois Income
19        Tax Act; or
20            (D) the business intends to construct new
21        transmission facilities or upgrade existing
22        transmission facilities at designated locations in
23        Illinois, for which construction commenced not sooner
24        than July 1, 2001. For the purposes of this Section,
25        "transmission facilities" means transmission lines
26        with a voltage rating of 115 kilovolts or above,

 

 

10200HB3666sam001- 222 -LRB102 13525 AMC 28481 a

1        including associated equipment, that transfer
2        electricity from points of supply to points of
3        delivery and that transmit a majority of the
4        electricity generated by a new electric generating
5        facility designated as a High Impact Business in
6        accordance with this Section. The business must
7        certify in writing that the investments necessary to
8        construct new transmission facilities or upgrade
9        existing transmission facilities would not be placed
10        in service without the tax credits and exemptions set
11        forth in subsection (b-5) of this Section. The term
12        "placed in service" has the same meaning as described
13        in subsection (h) of Section 201 of the Illinois
14        Income Tax Act; or
15            (E) the business intends to establish a new wind
16        power facility at a designated location in Illinois.
17        For purposes of this Section, "new wind power
18        facility" means a newly constructed electric
19        generation facility, or a newly constructed expansion
20        of an existing electric generation facility, placed in
21        service on or after July 1, 2009, that generates
22        electricity using wind energy devices, and such
23        facility shall be deemed to include all associated
24        transmission lines, substations, and other equipment
25        related to the generation of electricity from wind
26        energy devices. For purposes of this Section, "wind

 

 

10200HB3666sam001- 223 -LRB102 13525 AMC 28481 a

1        energy device" means any device, with a nameplate
2        capacity of at least 0.5 megawatts, that is used in the
3        process of converting kinetic energy from the wind to
4        generate electricity; or
5            (E-5) the business intends to establish a new
6        utility-scale solar facility at a designated location
7        in Illinois. For purposes of this Section, "new
8        utility-scale solar power facility" means a newly
9        constructed electric generation facility, or a newly
10        constructed expansion of an existing electric
11        generation facility, placed in service on or after
12        July 1, 2021, that (i) generates electricity using
13        photovoltaic cells and (ii) has a nameplate capacity
14        that is greater than 5,000 kilowatts, and such
15        facility shall be deemed to include all associated
16        transmission lines, substations, energy storage
17        facilities, and other equipment related to the
18        generation and storage of electricity from
19        photovoltaic cells; or
20            (F) the business commits to (i) make a minimum
21        investment of $500,000,000, which will be placed in
22        service in a qualified property, (ii) create 125
23        full-time equivalent jobs at a designated location in
24        Illinois, (iii) establish a fertilizer plant at a
25        designated location in Illinois that complies with the
26        set-back standards as described in Table 1: Initial

 

 

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1        Isolation and Protective Action Distances in the 2012
2        Emergency Response Guidebook published by the United
3        States Department of Transportation, (iv) pay a
4        prevailing wage for employees at that location who are
5        engaged in construction activities, and (v) secure an
6        appropriate level of general liability insurance to
7        protect against catastrophic failure of the fertilizer
8        plant or any of its constituent systems; in addition,
9        the business must agree to enter into a construction
10        project labor agreement including provisions
11        establishing wages, benefits, and other compensation
12        for employees performing work under the project labor
13        agreement at that location; for the purposes of this
14        Section, "fertilizer plant" means a newly constructed
15        or upgraded plant utilizing gas used in the production
16        of anhydrous ammonia and downstream nitrogen
17        fertilizer products for resale; for the purposes of
18        this Section, "prevailing wage" means the hourly cash
19        wages plus fringe benefits for training and
20        apprenticeship programs approved by the U.S.
21        Department of Labor, Bureau of Apprenticeship and
22        Training, health and welfare, insurance, vacations and
23        pensions paid generally, in the locality in which the
24        work is being performed, to employees engaged in work
25        of a similar character on public works; this paragraph
26        (F) applies only to businesses that submit an

 

 

10200HB3666sam001- 225 -LRB102 13525 AMC 28481 a

1        application to the Department within 60 days after
2        July 25, 2013 (the effective date of Public Act
3        98-109) this amendatory Act of the 98th General
4        Assembly; and
5        (4) no later than 90 days after an application is
6    submitted, the Department shall notify the applicant of
7    the Department's determination of the qualification of the
8    proposed High Impact Business under this Section.
9    (b) Businesses designated as High Impact Businesses
10pursuant to subdivision (a)(3)(A) of this Section shall
11qualify for the credits and exemptions described in the
12following Acts: Section 9-222 and Section 9-222.1A of the
13Public Utilities Act, subsection (h) of Section 201 of the
14Illinois Income Tax Act, and Section 1d of the Retailers'
15Occupation Tax Act; provided that these credits and exemptions
16described in these Acts shall not be authorized until the
17minimum investments set forth in subdivision (a)(3)(A) of this
18Section have been placed in service in qualified properties
19and, in the case of the exemptions described in the Public
20Utilities Act and Section 1d of the Retailers' Occupation Tax
21Act, the minimum full-time equivalent jobs or full-time
22retained jobs set forth in subdivision (a)(3)(A) of this
23Section have been created or retained. Businesses designated
24as High Impact Businesses under this Section shall also
25qualify for the exemption described in Section 5l of the
26Retailers' Occupation Tax Act. The credit provided in

 

 

10200HB3666sam001- 226 -LRB102 13525 AMC 28481 a

1subsection (h) of Section 201 of the Illinois Income Tax Act
2shall be applicable to investments in qualified property as
3set forth in subdivision (a)(3)(A) of this Section.
4    (b-5) Businesses designated as High Impact Businesses
5pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
6and (a)(3)(D) of this Section shall qualify for the credits
7and exemptions described in the following Acts: Section 51 of
8the Retailers' Occupation Tax Act, Section 9-222 and Section
99-222.1A of the Public Utilities Act, and subsection (h) of
10Section 201 of the Illinois Income Tax Act; however, the
11credits and exemptions authorized under Section 9-222 and
12Section 9-222.1A of the Public Utilities Act, and subsection
13(h) of Section 201 of the Illinois Income Tax Act shall not be
14authorized until the new electric generating facility, the new
15gasification facility, the new transmission facility, or the
16new, expanded, or reopened coal mine is operational, except
17that a new electric generating facility whose primary fuel
18source is natural gas is eligible only for the exemption under
19Section 5l of the Retailers' Occupation Tax Act.
20    (b-6) Businesses designated as High Impact Businesses
21pursuant to subdivision (a)(3)(E) of this Section shall
22qualify for the exemptions described in Section 5l of the
23Retailers' Occupation Tax Act; any business so designated as a
24High Impact Business being, for purposes of this Section, a
25"Wind Energy Business".
26    (b-7) Beginning on January 1, 2021, businesses designated

 

 

10200HB3666sam001- 227 -LRB102 13525 AMC 28481 a

1as High Impact Businesses by the Department shall qualify for
2the High Impact Business construction jobs credit under
3subsection (h-5) of Section 201 of the Illinois Income Tax Act
4if the business meets the criteria set forth in subsection (i)
5of this Section. The total aggregate amount of credits awarded
6under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
7this amendatory Act of the 101st General Assembly) shall not
8exceed $20,000,000 in any State fiscal year.
9    (c) High Impact Businesses located in federally designated
10foreign trade zones or sub-zones are also eligible for
11additional credits, exemptions and deductions as described in
12the following Acts: Section 9-221 and Section 9-222.1 of the
13Public Utilities Act; and subsection (g) of Section 201, and
14Section 203 of the Illinois Income Tax Act.
15    (d) Except for businesses contemplated under subdivision
16(a)(3)(E) of this Section, existing Illinois businesses which
17apply for designation as a High Impact Business must provide
18the Department with the prospective plan for which 1,500
19full-time retained jobs would be eliminated in the event that
20the business is not designated.
21    (e) Except for new wind power facilities contemplated
22under subdivision (a)(3)(E) of this Section, new proposed
23facilities which apply for designation as High Impact Business
24must provide the Department with proof of alternative
25non-Illinois sites which would receive the proposed investment
26and job creation in the event that the business is not

 

 

10200HB3666sam001- 228 -LRB102 13525 AMC 28481 a

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

 

 

10200HB3666sam001- 229 -LRB102 13525 AMC 28481 a

1a new wind power facility or a Wind Energy Business or new
2utility-scale solar power facility.
3    (h) Prior to designating a business, the Department shall
4provide the members of the General Assembly and Commission on
5Government Forecasting and Accountability with a report
6setting forth the terms and conditions of the designation and
7guarantees that have been received by the Department in
8relation to the proposed business being designated.
9    (i) High Impact Business construction jobs credit.
10Beginning on January 1, 2021, a High Impact Business may
11receive a tax credit against the tax imposed under subsections
12(a) and (b) of Section 201 of the Illinois Income Tax Act in an
13amount equal to 50% of the amount of the incremental income tax
14attributable to High Impact Business construction jobs credit
15employees employed in the course of completing a High Impact
16Business construction jobs project. However, the High Impact
17Business construction jobs credit may equal 75% of the amount
18of the incremental income tax attributable to High Impact
19Business construction jobs credit employees if the High Impact
20Business construction jobs credit project is located in an
21underserved area.
22    The Department shall certify to the Department of Revenue:
23(1) the identity of taxpayers that are eligible for the High
24Impact Business construction jobs credit; and (2) the amount
25of High Impact Business construction jobs credits that are
26claimed pursuant to subsection (h-5) of Section 201 of the

 

 

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1Illinois Income Tax Act in each taxable year. Any business
2entity that receives a High Impact Business construction jobs
3credit shall maintain a certified payroll pursuant to
4subsection (j) of this Section.
5    As used in this subsection (i):
6    "High Impact Business construction jobs credit" means an
7amount equal to 50% (or 75% if the High Impact Business
8construction project is located in an underserved area) of the
9incremental income tax attributable to High Impact Business
10construction job employees. The total aggregate amount of
11credits awarded under the Blue Collar Jobs Act (Article 20 of
12Public Act 101-9 this amendatory Act of the 101st General
13Assembly) shall not exceed $20,000,000 in any State fiscal
14year
15    "High Impact Business construction job employee" means a
16laborer or worker who is employed by an Illinois contractor or
17subcontractor in the actual construction work on the site of a
18High Impact Business construction job project.
19    "High Impact Business construction jobs project" means
20building a structure or building or making improvements of any
21kind to real property, undertaken and commissioned by a
22business that was designated as a High Impact Business by the
23Department. The term "High Impact Business construction jobs
24project" does not include the routine operation, routine
25repair, or routine maintenance of existing structures,
26buildings, or real property.

 

 

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1    "Incremental income tax" means the total amount withheld
2during the taxable year from the compensation of High Impact
3Business construction job employees.
4    "Underserved area" means a geographic area that meets one
5or more of the following conditions:
6        (1) the area has a poverty rate of at least 20%
7    according to the latest federal decennial census;
8        (2) 75% or more of the children in the area
9    participate in the federal free lunch program according to
10    reported statistics from the State Board of Education;
11        (3) at least 20% of the households in the area receive
12    assistance under the Supplemental Nutrition Assistance
13    Program (SNAP); or
14        (4) the area has an average unemployment rate, as
15    determined by the Illinois Department of Employment
16    Security, that is more than 120% of the national
17    unemployment average, as determined by the U.S. Department
18    of Labor, for a period of at least 2 consecutive calendar
19    years preceding the date of the application.
20    (j) Each contractor and subcontractor who is engaged in
21and executing a High Impact Business Construction jobs
22project, as defined under subsection (i) of this Section, for
23a business that is entitled to a credit pursuant to subsection
24(i) of this Section shall:
25        (1) make and keep, for a period of 5 years from the
26    date of the last payment made on or after June 5, 2021 (the

 

 

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1    effective date of Public Act 101-9) this amendatory Act of
2    the 101st General Assembly on a contract or subcontract
3    for a High Impact Business Construction Jobs Project,
4    records for all laborers and other workers employed by the
5    contractor or subcontractor on the project; the records
6    shall include:
7            (A) the worker's name;
8            (B) the worker's address;
9            (C) the worker's telephone number, if available;
10            (D) the worker's social security number;
11            (E) the worker's classification or
12        classifications;
13            (F) the worker's gross and net wages paid in each
14        pay period;
15            (G) the worker's number of hours worked each day;
16            (H) the worker's starting and ending times of work
17        each day;
18            (I) the worker's hourly wage rate; and
19            (J) the worker's hourly overtime wage rate;
20        (2) no later than the 15th day of each calendar month,
21    provide a certified payroll for the immediately preceding
22    month to the taxpayer in charge of the High Impact
23    Business construction jobs project; within 5 business days
24    after receiving the certified payroll, the taxpayer shall
25    file the certified payroll with the Department of Labor
26    and the Department of Commerce and Economic Opportunity; a

 

 

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1    certified payroll must be filed for only those calendar
2    months during which construction on a High Impact Business
3    construction jobs project has occurred; the certified
4    payroll shall consist of a complete copy of the records
5    identified in paragraph (1) of this subsection (j), but
6    may exclude the starting and ending times of work each
7    day; the certified payroll shall be accompanied by a
8    statement signed by the contractor or subcontractor or an
9    officer, employee, or agent of the contractor or
10    subcontractor which avers that:
11            (A) he or she has examined the certified payroll
12        records required to be submitted by the Act and such
13        records are true and accurate; and
14            (B) the contractor or subcontractor is aware that
15        filing a certified payroll that he or she knows to be
16        false is a Class A misdemeanor.
17    A general contractor is not prohibited from relying on a
18certified payroll of a lower-tier subcontractor, provided the
19general contractor does not knowingly rely upon a
20subcontractor's false certification.
21    Any contractor or subcontractor subject to this
22subsection, and any officer, employee, or agent of such
23contractor or subcontractor whose duty as an officer,
24employee, or agent it is to file a certified payroll under this
25subsection, who willfully fails to file such a certified
26payroll on or before the date such certified payroll is

 

 

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1required by this paragraph to be filed and any person who
2willfully files a false certified payroll that is false as to
3any material fact is in violation of this Act and guilty of a
4Class A misdemeanor.
5    The taxpayer in charge of the project shall keep the
6records submitted in accordance with this subsection on or
7after June 5, 2021 (the effective date of Public Act 101-9)
8this amendatory Act of the 101st General Assembly for a period
9of 5 years from the date of the last payment for work on a
10contract or subcontract for the High Impact Business
11construction jobs project.
12    The records submitted in accordance with this subsection
13shall be considered public records, except an employee's
14address, telephone number, and social security number, and
15made available in accordance with the Freedom of Information
16Act. The Department of Labor shall accept any reasonable
17submissions by the contractor that meet the requirements of
18this subsection (j) and shall share the information with the
19Department in order to comply with the awarding of a High
20Impact Business construction jobs credit. A contractor,
21subcontractor, or public body may retain records required
22under this Section in paper or electronic format.
23    (k) Upon 7 business days' notice, each contractor and
24subcontractor shall make available for inspection and copying
25at a location within this State during reasonable hours, the
26records identified in this subsection (j) to the taxpayer in

 

 

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1charge of the High Impact Business construction jobs project,
2its officers and agents, the Director of the Department of
3Labor and his or her deputies and agents, and to federal,
4State, or local law enforcement agencies and prosecutors.
5(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
6    Section 90-24. The Department of Labor Law of the Civil
7Administrative Code of Illinois is amended by changing Section
81505-215 and by adding Section 1505-220 as follows:
 
9    (20 ILCS 1505/1505-215)
10    Sec. 1505-215. Bureau on Apprenticeship Programs and Clean
11Energy Jobs ; Advisory Board.
12    (a) For purposes of this Section:
13    "Clean energy jobs" means jobs in the clean energy sector.
14"Clean energy jobs" includes constructing, development,
15planning, administrative, sales, and other support functions
16within these industries.
17    "Clean energy sector" means solar energy, wind energy,
18energy efficiency, solar thermal, green hydrogen, geothermal,
19and electric vehicle industries and other renewable energy
20industries, industries achieving emission reductions, and
21related industries that manufacture, develop, build, maintain,
22or provide ancillary services to renewable energy resources or
23energy efficiency products or services, including the
24manufacture and installation of healthier building materials

 

 

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1that contain fewer hazardous chemicals.
2    (b) There is created within the Department of Labor a
3Bureau on Apprenticeship Programs and Clean Energy Jobs. This
4Bureau shall work to increase minority participation in active
5apprentice programs in Illinois that are approved by the
6United States Department of Labor and in clean energy jobs in
7Illinois. The Bureau shall identify barriers to minorities
8gaining access to construction careers and careers in clean
9energy jobs and make recommendations to the Governor and the
10General Assembly for policies to remove those barriers. The
11Department may hire staff to perform outreach in promoting
12diversity in active apprenticeship programs approved by the
13United States Department of Labor and compile reports and
14diversity, equity, and inclusion plans for clean energy sector
15jobs. The Bureau and the Department shall coordinate with the
16Department of Commerce and Economic Opportunity, Energy
17Workforce Advisory Council, and the Energy Transition
18Navigators in its efforts to compile information and remove
19barriers to participation in clean energy jobs.
20    (c) The Bureau shall annually compile racial and gender
21workforce diversity information from contractors receiving
22State or other public funds and by labor unions with members
23working on projects receiving State or other public funds that
24are not otherwise subject to subsection (d).
25    (d) The Bureau shall compile racial and gender workforce
26diversity information from certified transcripts of payroll

 

 

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1reports filed in the preceding year pursuant to the Prevailing
2Wage Act for all clean energy sector construction projects.
3The Bureau shall also compile racial and gender workforce
4diversity information from all corporations, nonprofits,
5developers, contractors, and other entities receiving State or
6other public funds for projects in the clean energy sector.
7The Bureau shall work with the Department of Commerce and
8Economic Opportunity, the Illinois Power Agency, the Illinois
9Commerce Commission, and other agencies, as necessary, to
10receive and share data and reporting on racial and gender
11workforce diversity, demographic data, and any other data
12necessary to achieve the goals of this Section. The Bureau
13shall work with the Department of Commerce and Economic
14Opportunity to review the workforce recruiting and hiring
15database developed in accordance with subsection (c-25) of
16Section 1-75 of the Illinois Power Agency Act to verify
17equitable recruiting and hiring practices by contractors and
18employers in clean energy jobs.
19    (e) By April 15, 2022 and every April 15 thereafter, the
20Bureau shall publish and make available on the Department's
21website a report summarizing the racial and gender diversity
22of the workforce on all clean energy sector projects by
23county. The report shall use a consistent structure for
24information requests and presentation, with an easy-to-use
25table of contents, to enable comparable year-over-year
26solicitation and benchmarking of data. The development of the

 

 

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1report structure shall be open to a public review and comment
2period. That report shall compare the race, ethnicity, and
3gender of the workers on clean energy projects to the general
4population of the county in which the project is located. The
5report shall also disaggregate such data to compare the race,
6ethnicity, and gender of workers employed by union and
7nonunion contractors and compare the race, ethnicity, and
8gender of workers who reside in Illinois and those who reside
9outside of Illinois. The report shall also include the race,
10ethnicity, and gender of the workers by prevailing wage
11classification.
12    (f) If the race, ethnicity, and gender of the workforce on
13a clean energy sector project does not meet or exceed that of
14the general population of the county in which the project is
15located or, in the case of a project in which any of the
16workers are represented by a union, the geographic
17jurisdiction of that union, the Bureau shall request a written
18explanation from the contractors that employed workers on such
19project and any unions representing those workers, as
20applicable. If deemed necessary by the Bureau, the contractors
21and any unions representing workers on such project shall be
22required by the Bureau to develop a plan to increase
23diversity, equity, and inclusion on future clean energy sector
24projects in that county or, in the case of a union, the
25geographic jurisdiction covered by the union. The plan should
26include: (i) areas of work and clean energy jobs each entity

 

 

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1will actively seek more participation in during the next year;
2(ii) an outline of the plan to alert and encourage potential
3workers to seek clean energy jobs; (iii) an explanation of the
4challenges faced in finding quality workers and suggestions
5for what the Bureau could do to aid in identifying potential
6workers; (iv) a list of certifications, if any, the entity
7requires for workers to obtain clean energy jobs; (v) the
8point of contact for any potential worker seeking a clean
9energy job or other opportunity with the entity; and (vi) any
10success stories to encourage other entities to emulate the
11best practices.
12    The Bureau and all entities subject to the requirements of
13subsection (d) shall hold an annual workshop open to the
14public in 2022 and every year thereafter on the state of racial
15and gender workforce diversity in the clean energy sector in
16order to collaboratively seek solutions to structural
17impediments to achieving diversity, equity, and inclusion
18goals, including testimony from each participating entity,
19subject matter experts, and advocates.
20    (g) The Bureau shall publish each annual report prepared
21and filed pursuant to subsection (d) on the Department of
22Labor's website for at least 5 years.
23(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
24revised 10-22-20.)
 
25    (20 ILCS 1505/1505-220 new)

 

 

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1    Sec. 1505-220. Small Clean Energy Contractor Prevailing
2Wage Act Assistance. The General Assembly finds that small
3clean energy businesses, especially those in or serving
4underserved or historically disinvested communities, need
5assistance and resources to help them comply with the
6Prevailing Wage Act. Therefore, the Department of Labor shall
7develop and administer a statewide program to assist small
8clean energy contractors in administering and complying with
9the Prevailing Wage Act requirements. This Program shall
10provide training and ongoing technical assistance pertaining
11to compliance with the Prevailing Wage Act, including
12certified payroll reporting requirements. Ongoing assistance
13shall include, but is not limited to, answering contractor
14questions, recommending tools and process improvements,
15establishing an account with and utilizing the Certified
16Transcript of Payroll Portal and alerting businesses when
17certified payroll reports are incomplete or incorrect,
18building administrative expertise within individual
19businesses, and any other assistance businesses identify as
20needed based on verbal or other input. All Program training,
21technical assistance, materials, services, and systems shall
22be structured to accommodate and address real-world
23circumstances encountered by small clean energy contractors;
24shall be developed, refined, and adjusted as necessary in
25consultation with such contractors; and shall be administered
26to serve businesses that operate in languages other than

 

 

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1English and do so at a level of service equivalent to that
2offered to businesses that operate in English. The Department
3may enter into agreements with contractors with experience in
4supporting small businesses in underserved or historically
5disinvested communities to implement portions or all of the
6program, ensuring such capacity is developed in northern,
7central, and southern Illinois regions. The Department shall
8communicate and market program services to small clean energy
9contractors statewide, and may do so in coordination with the
10Department of Commerce and Economic Opportunity.
 
11    Section 90-25. The Energy Efficient Building Act is
12amended by changing Sections 10, 15, 20, 30, and 45 and by
13adding Section 55 as follows:
 
14    (20 ILCS 3125/10)
15    Sec. 10. Definitions.
16    "Board" means the Capital Development Board.
17    "Building" includes both residential buildings and
18commercial buildings.
19    "Code" means the latest published edition of the
20International Code Council's International Energy Conservation
21Code as adopted by the Board, including any published
22supplements adopted by the Board and any amendments and
23adaptations to the Code that are made by the Board.
24    "Commercial building" means any building except a building

 

 

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1that is a residential building, as defined in this Section.
2    "Department" means the Department of Commerce and Economic
3Opportunity.
4    "Municipality" means any city, village, or incorporated
5town.
6    "Residential building" means (i) a detached one-family or
72-family dwelling or (ii) any building that is 3 stories or
8less in height above grade that contains multiple dwelling
9units, in which the occupants reside on a primarily permanent
10basis, such as a townhouse, a row house, an apartment house, a
11convent, a monastery, a rectory, a fraternity or sorority
12house, a dormitory, and a rooming house; provided, however,
13that when applied to a building located within the boundaries
14of a municipality having a population of 1,000,000 or more,
15the term "residential building" means a building containing
16one or more dwelling units, not exceeding 4 stories above
17grade, where occupants are primarily permanent.
18    "Site energy index" means a scalar published by the
19Pacific Northwest National Laboratories representing the ratio
20of the site energy performance of an evaluated code compared
21to the site energy performance of the 2006 International
22Energy Conservation Code. A "site energy index" includes only
23conservation measures and excludes net energy credit for any
24on-site or off-site energy production.
25(Source: P.A. 101-144, eff. 7-26-19.)
 

 

 

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1    (20 ILCS 3125/15)
2    Sec. 15. Energy Efficient Building Code. The Board, in
3consultation with the Department, shall adopt the Code as
4minimum requirements for commercial buildings, applying to the
5construction of, renovations to, and additions to all
6commercial buildings in the State. The Board, in consultation
7with the Department, shall also adopt the Code as the minimum
8and maximum requirements for residential buildings, applying
9to the construction of, renovations to, and additions to all
10residential buildings in the State, except as provided for in
11Section 45 of this Act. The Board may appropriately adapt the
12International Energy Conservation Code to apply to the
13particular economy, population distribution, geography, and
14climate of the State and construction therein, consistent with
15the public policy objectives of this Act.
16(Source: P.A. 96-778, eff. 8-28-09.)
 
17    (20 ILCS 3125/20)
18    Sec. 20. Applicability.
19    (a) The Board shall review and adopt the Code within one
20year after its publication. The Code shall take effect within
216 months after it is adopted by the Board, except that,
22beginning January 1, 2012, the Code adopted in 2012 shall take
23effect on January 1, 2013. Except as otherwise provided in
24this Act, the Code shall apply to (i) any new building or
25structure in this State for which a building permit

 

 

10200HB3666sam001- 244 -LRB102 13525 AMC 28481 a

1application is received by a municipality or county and (ii)
2beginning on the effective date of this amendatory Act of the
3100th General Assembly, each State facility specified in
4Section 4.01 of the Capital Development Board Act. In the case
5of any addition, alteration, renovation, or repair to an
6existing residential or commercial structure, the Code adopted
7under this Act applies only to the portions of that structure
8that are being added, altered, renovated, or repaired. The
9changes made to this Section by this amendatory Act of the 97th
10General Assembly shall in no way invalidate or otherwise
11affect contracts entered into on or before the effective date
12of this amendatory Act of the 97th General Assembly.
13    (b) The following buildings shall be exempt from the Code:
14        (1) Buildings otherwise exempt from the provisions of
15    a locally adopted building code and buildings that do not
16    contain a conditioned space.
17        (2) Buildings that do not use either electricity or
18    fossil fuel for comfort conditioning. For purposes of
19    determining whether this exemption applies, a building
20    will be presumed to be heated by electricity, even in the
21    absence of equipment used for electric comfort heating,
22    whenever the building is provided with electrical service
23    in excess of 100 amps, unless the code enforcement
24    official determines that this electrical service is
25    necessary for purposes other than providing electric
26    comfort heating.

 

 

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1        (3) Historic buildings. This exemption shall apply to
2    those buildings that are listed on the National Register
3    of Historic Places or the Illinois Register of Historic
4    Places, and to those buildings that have been designated
5    as historically significant by a local governing body that
6    is authorized to make such designations.
7        (4) (Blank).
8        (5) Other buildings specified as exempt by the
9    International Energy Conservation Code.
10    (c) Additions, alterations, renovations, or repairs to an
11existing building, building system, or portion thereof shall
12conform to the provisions of the Code as they relate to new
13construction without requiring the unaltered portion of the
14existing building or building system to comply with the Code.
15The following need not comply with the Code, provided that the
16energy use of the building is not increased: (i) storm windows
17installed over existing fenestration, (ii) glass-only
18replacements in an existing sash and frame, (iii) existing
19ceiling, wall, or floor cavities exposed during construction,
20provided that these cavities are filled with insulation, and
21(iv) construction where the existing roof, wall, or floor is
22not exposed.
23    (d) A unit of local government that does not regulate
24energy efficient building standards is not required to adopt,
25enforce, or administer the Code; however, any energy efficient
26building standards adopted by a unit of local government must

 

 

10200HB3666sam001- 246 -LRB102 13525 AMC 28481 a

1comply with this Act. If a unit of local government does not
2regulate energy efficient building standards, any
3construction, renovation, or addition to buildings or
4structures is subject to the provisions contained in this Act.
5(Source: P.A. 100-729, eff. 8-3-18.)
 
6    (20 ILCS 3125/30)
7    Sec. 30. Enforcement. The Board, in consultation with the
8Department, shall determine procedures for compliance with the
9Code. These procedures may include but need not be limited to
10certification by a national, State, or local accredited energy
11conservation program or inspections from private
12Code-certified inspectors using the Code. For purposes of the
13Illinois Stretch Energy Code under Section 55, the Board shall
14allow and encourage, as an alternative compliance mechanism,
15project certification by a nationally recognized nonprofit
16certification organization specializing in high-performance
17passive buildings and offering climate-specific building
18energy standards that require equal or better energy
19performance than the Illinois Stretch Energy Code.
20(Source: P.A. 93-936, eff. 8-13-04.)
 
21    (20 ILCS 3125/45)
22    Sec. 45. Home rule.
23    (a) (Blank). No unit of local government, including any
24home rule unit, may regulate energy efficient building

 

 

10200HB3666sam001- 247 -LRB102 13525 AMC 28481 a

1standards for commercial buildings in a manner that is less
2stringent than the provisions contained in this Act.
3    (b) No unit of local government, including any home rule
4unit, may regulate energy efficient building standards for
5residential buildings in a manner that is either less or more
6stringent than the standards established pursuant to this Act;
7provided, however, that the following entities may regulate
8energy efficient building standards for residential or
9commercial buildings in a manner that is more stringent than
10the provisions contained in this Act: (i) a unit of local
11government, including a home rule unit, that has, on or before
12May 15, 2009, adopted or incorporated by reference energy
13efficient building standards for residential or commercial
14buildings that are equivalent to or more stringent than the
152006 International Energy Conservation Code, (ii) a unit of
16local government, including a home rule unit, that has, on or
17before May 15, 2009, provided to the Capital Development
18Board, as required by Section 10.18 of the Capital Development
19Board Act, an identification of an energy efficient building
20code or amendment that is equivalent to or more stringent than
21the 2006 International Energy Conservation Code, (ii-5) a
22municipality that has adopted the Illinois Stretch Energy
23Code, and (iii) a municipality with a population of 1,000,000
24or more.
25    (c) No unit of local government, including any home rule
26unit or unit of local government that is subject to State

 

 

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1regulation under the Code as provided in Section 15 of this
2Act, may hereafter enact any annexation ordinance or
3resolution, or require or enter into any annexation agreement,
4that imposes energy efficient building standards for
5residential or commercial buildings that are either less or
6more stringent than the energy efficiency standards in effect,
7at the time of construction, throughout the unit of local
8government, except for the Illinois Stretch Energy Code.
9    (d) This Section is a denial and limitation of home rule
10powers and functions under subsection (i) of Section 6 of
11Article VII of the Illinois Constitution on the concurrent
12exercise by home rule units of powers and functions exercised
13by the State. Nothing in this Section, however, prevents a
14unit of local government from adopting an energy efficiency
15code or standards for commercial buildings that are more
16stringent than the Code under this Act.
17(Source: P.A. 99-639, eff. 7-28-16.)
 
18    (20 ILCS 3125/55 new)
19    Sec. 55. Illinois Stretch Energy Code.
20    (a) The Board, in consultation with the Department, shall
21create and adopt the Illinois Stretch Energy Code, to allow
22municipalities and projects authorized or funded by the Board
23to achieve more energy efficiency in buildings than the
24Illinois Energy Conservation Code through a consistent pathway
25across the State. The Illinois Stretch Energy Code shall be

 

 

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1available for adoption by any municipality and shall set
2minimum energy efficiency requirements, taking the place of
3the Illinois Energy Conservation Code within any municipality
4that adopts the Illinois Stretch Energy Code.
5    (b) The Illinois Stretch Energy Code shall have separate
6components for commercial and residential buildings, which may
7be adopted by the municipality jointly or separately.
8    (c) The Illinois Stretch Energy Code shall apply to all
9projects to which an energy conservation code is applicable
10that are authorized or funded in any part by the Board after
11January 1, 2023.
12    (d) Development of the Illinois Stretch Energy Code shall
13be completed and available for adoption by municipalities by
14December 31, 2023.
15    (e) Consistent with the requirements under paragraph (2.5)
16of subsection (g) of Section 8-103B of the Public Utilities
17Act and under paragraph (2) of subsection (j) of Section
188-104.1 of the Public Utilities Act, municipalities that adopt
19the Illinois Stretch Energy Code may use utility programs to
20support compliance with the Illinois Stretch Energy Code. The
21amount of savings from such utility efforts that may be
22counted toward achievement of their annual savings goals shall
23be based on reasonable estimates of the increase in savings
24resulting from the utility efforts, relative to reasonable
25approximations of what would have occurred absent the utility
26involvement.

 

 

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1    (f) The Illinois Stretch Energy Code's residential
2components shall:
3        (1) apply to residential buildings as defined under
4    Section 10;
5        (2) set performance targets using a site energy index
6    with reductions relative to the 2006 International Energy
7    Conservation Code; and
8        (3) include stretch energy codes with site energy
9    index standards and adoption dates as follows: by no later
10    than December 31, 2022, the Board shall create and adopt a
11    stretch energy code with a site energy index no greater
12    than 0.50 of the 2006 International Energy Conservation
13    Code; by no later than December 31, 2025, the Board shall
14    create and adopt a stretch energy code with a site energy
15    index no greater than 0.40 of the 2006 International
16    Energy Conservation Code, unless the Board identifies
17    unanticipated burdens associated with the stretch energy
18    code adopted in 2022, in which case the Board may adopt a
19    stretch energy code with a site energy index no greater
20    than 0.42 of the 2006 International Energy Conservation
21    Code, provided that the more relaxed standard has a site
22    energy index that is at least 0.05 more restrictive than
23    the 2024 International Energy Conservation Code; by no
24    later than December 31, 2028, the Board shall create and
25    adopt a stretch energy code with a site energy index no
26    greater than 0.33 of the 2006 International Energy

 

 

10200HB3666sam001- 251 -LRB102 13525 AMC 28481 a

1    Conservation Code, unless the Board identifies
2    unanticipated burdens associated with the stretch energy
3    code adopted in 2025, in which case the Board may adopt a
4    stretch energy code with a site energy index no greater
5    than 0.35 of the 2006 International Energy Conservation
6    Code, but only if that more relaxed standard has a site
7    energy index that is at least 0.05 more restrictive than
8    the 2027 International Energy Conservation Code; and by no
9    later than December 31, 2031, the Board shall create and
10    adopt a stretch energy code with a site energy index no
11    greater than 0.25 of the 2006 International Energy
12    Conservation Code.
13    (g) The Illinois Stretch Energy Code's commercial
14components shall:
15        (1) apply to commercial buildings as defined under
16    Section 10;
17        (2) set performance targets using a site energy index
18    with reductions relative to the 2006 International Energy
19    Conservation Code; and
20        (3) include stretch energy codes with site energy
21    index standards and adoption dates as follows: by no later
22    than December 31, 2022, the Board shall create and adopt a
23    stretch energy code with a site energy index no greater
24    than 0.60 of the 2006 International Energy Conservation
25    Code; by no later than December 31, 2025, the Board shall
26    create and adopt a stretch energy code with a site energy

 

 

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1    index no greater than 0.50 of the 2006 International
2    Energy Conservation Code; by no later than December 31,
3    2028, the Board shall create and adopt a stretch energy
4    code with a site energy index no greater than 0.44 of the
5    2006 International Energy Conservation Code; and by no
6    later than December 31, 2031, the Board shall create and
7    adopt a stretch energy code with a site energy index no
8    greater than 0.39 of the 2006 International Energy
9    Conservation Code.
10    (h) The process for the creation of the Illinois Stretch
11Energy Code includes:
12        (1) within 60 days after the effective date of this
13    amendatory Act of the 102nd General Assembly, the Capital
14    Development Board shall establish an Illinois Stretch
15    Energy Code Task Force to advise and provide technical
16    assistance and recommendations to the Capital Development
17    Board for the Illinois Stretch Energy Code, which shall:
18            (A) advise the Capital Development Board on
19        creation of interim performance targets, code
20        requirements, and an implementation plan for the
21        Illinois Stretch Energy Code;
22            (B) recommend amendments to proposed rules issued
23        by the Capital Development Board;
24            (C) recommend complementary programs or policies;
25            (D) complete recommendations and development for
26        the Illinois Stretch Energy Code elements and

 

 

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1        requirements by July 31, 2022;
2            (E) be composed of, but not limited to,
3        representatives, or their designees, from the
4        following entities:
5                (i) a representative from a group that
6            represents environmental justice;
7                (ii) a representative of a nonprofit or
8            professional association advocating for the
9            environment;
10                (iii) a representative of an organization
11            representing local governments in the metropolitan
12            Chicago region;
13                (iv) a representative of the City of Chicago;
14                (v) a representative of an organization
15            representing local governments outside the
16            metropolitan Chicago region;
17                (vi) a representative for the investor-owned
18            utilities of Illinois;
19                (vii) an energy-efficiency advocate with
20            technical expertise in single-family residential
21            buildings;
22                (viii) an energy-efficiency advocate with
23            technical expertise in commercial buildings;
24                (ix) an energy-efficiency advocate with
25            technical expertise in multifamily buildings, such
26            as an affordable housing developer;

 

 

10200HB3666sam001- 254 -LRB102 13525 AMC 28481 a

1                (x) a representative from the architecture or
2            engineering industry;
3                (xi) a representative from a home builders
4            association;
5                (xii) a representative from the commercial
6            building industry;
7                (xiii) a representative of the enforcement
8            industry, such as a code official or energy rater;
9                (xiv) a representative of organized labor; and
10                (xv) other experts or organizations deemed
11            necessary by the Capital Development Board; and
12            (F) be co-chaired by:
13                (i) a representative of the environmental
14            community;
15                (ii) a representative of the environmental
16            justice community; and
17                (iii) a municipal representative.
18        (2) As part of its deliberations, the Illinois Stretch
19    Energy Code Task Force shall actively solicit input from
20    other energy code stakeholders and interested parties.
 
21    Section 90-30. The Illinois Power Agency Act is amended by
22changing Sections 1-5, 1-10, 1-20, 1-35, 1-56, 1-70, 1-75,
231-92, and 1-125 and by adding Section 1-128 as follows:
 
24    (20 ILCS 3855/1-5)

 

 

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1    Sec. 1-5. Legislative declarations and findings. The
2General Assembly finds and declares:
3        (1) The health, welfare, and prosperity of all
4    Illinois residents citizens require the provision of
5    adequate, reliable, affordable, efficient, and
6    environmentally sustainable electric service at the lowest
7    total cost over time, taking into account any benefits of
8    price stability.
9        (1.5) To provide the highest quality of life for the
10    residents of Illinois and to provide for a clean and
11    healthy environment, it is the policy of this State to
12    rapidly transition to 100% clean energy by 2050.
13        (2) (Blank).
14        (3) (Blank).
15        (4) It is necessary to improve the process of
16    procuring electricity to serve Illinois residents, to
17    promote investment in energy efficiency and
18    demand-response measures, and to maintain and support
19    development of clean coal technologies, generation
20    resources that operate at all hours of the day and under
21    all weather conditions, zero emission facilities, and
22    renewable resources.
23        (5) Procuring a diverse electricity supply portfolio
24    will ensure the lowest total cost over time for adequate,
25    reliable, efficient, and environmentally sustainable
26    electric service.

 

 

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1        (6) Including renewable resources and zero emission
2    credits from zero emission facilities in that portfolio
3    will reduce long-term direct and indirect costs to
4    consumers by decreasing environmental impacts and by
5    avoiding or delaying the need for new generation,
6    transmission, and distribution infrastructure. Developing
7    new renewable energy resources in Illinois, including
8    brownfield solar projects and community solar projects,
9    will help to diversify Illinois electricity supply, avoid
10    and reduce pollution, reduce peak demand, and enhance
11    public health and well-being of Illinois residents.
12        (7) Developing community solar projects in Illinois
13    will help to expand access to renewable energy resources
14    to more Illinois residents.
15        (8) Developing brownfield solar projects in Illinois
16    will help return blighted or contaminated land to
17    productive use while enhancing public health and the
18    well-being of Illinois residents, including those in
19    environmental justice communities.
20        (9) Energy efficiency, demand-response measures, zero
21    emission energy, and renewable energy are resources
22    currently underused in Illinois. These resources should be
23    used, when cost effective, to reduce costs to consumers,
24    improve reliability, and improve environmental quality and
25    public health.
26        (10) The State should encourage the use of advanced

 

 

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1    clean coal technologies that capture and sequester carbon
2    dioxide emissions to advance environmental protection
3    goals and to demonstrate the viability of coal and
4    coal-derived fuels in a carbon-constrained economy.
5        (10.5) The State should encourage the development of
6    interregional high voltage direct current (HVDC)
7    transmission lines that benefit Illinois. All ratepayers
8    in the State served by the regional transmission
9    organization where the HVDC converter station is
10    interconnected benefit from the long-term price stability
11    and market access provided by interregional HVDC
12    transmission facilities. The benefits to Illinois include:
13    reduction in wholesale power prices; access to lower-cost
14    markets; enabling the integration of additional renewable
15    generating units within the State through near
16    instantaneous dispatchability and the provision of
17    ancillary services; creating good-paying union jobs in
18    Illinois; and, enhancing grid reliability and climate
19    resilience via HVDC facilities that are installed
20    underground.
21        (10.6) The health, welfare, and safety of the people
22    of the State are advanced by developing new HVDC
23    transmission lines predominantly along transportation
24    rights-of-way, with an HVDC converter station that is
25    located in the service territory of a public utility as
26    defined in Section 3-105 of the Public Utilities Act

 

 

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1    serving more than 3,000,000 retail customers, and with a
2    project labor agreement as defined in Section 1-10 of this
3    Act.
4        (11) The General Assembly enacted Public Act 96-0795
5    to reform the State's purchasing processes, recognizing
6    that government procurement is susceptible to abuse if
7    structural and procedural safeguards are not in place to
8    ensure independence, insulation, oversight, and
9    transparency.
10        (12) The principles that underlie the procurement
11    reform legislation apply also in the context of power
12    purchasing.
13        (13) To ensure that the benefits of installing
14    renewable resources are available to all Illinois
15    residents and located across the State, subject to
16    appropriation, it is necessary for the Agency to provide
17    public information and educational resources on how
18    residents can benefit from the expansion of renewable
19    energy in Illinois and participate in the Illinois Solar
20    for All Program established in Section 1-56, the
21    Adjustable Block program established in Section 1-75, the
22    job training programs established by paragraph (1) of
23    subsection (a) of Section 16-108.12 of the Public
24    Utilities Act, and the programs and resources established
25    by the Energy Transition Act.
26    The General Assembly therefore finds that it is necessary

 

 

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1to create the Illinois Power Agency and that the goals and
2objectives of that Agency are to accomplish each of the
3following:
4        (A) Develop electricity procurement plans to ensure
5    adequate, reliable, affordable, efficient, and
6    environmentally sustainable electric service at the lowest
7    total cost over time, taking into account any benefits of
8    price stability, for electric utilities that on December
9    31, 2005 provided electric service to at least 100,000
10    customers in Illinois and for small multi-jurisdictional
11    electric utilities that (i) on December 31, 2005 served
12    less than 100,000 customers in Illinois and (ii) request a
13    procurement plan for their Illinois jurisdictional load.
14    The procurement plan shall be updated on an annual basis
15    and shall include renewable energy resources and,
16    beginning with the delivery year commencing June 1, 2017,
17    zero emission credits from zero emission facilities
18    sufficient to achieve the standards specified in this Act.
19        (B) Conduct the competitive procurement processes
20    identified in Public Act 99-906 this Act.
21        (C) Develop electric generation and co-generation
22    facilities that use indigenous coal or renewable
23    resources, or both, financed with bonds issued by the
24    Illinois Finance Authority.
25        (D) Supply electricity from the Agency's facilities at
26    cost to one or more of the following: municipal electric

 

 

10200HB3666sam001- 260 -LRB102 13525 AMC 28481 a

1    systems, governmental aggregators, or rural electric
2    cooperatives in Illinois.
3        (E) Ensure that the process of power procurement is
4    conducted in an ethical and transparent fashion, immune
5    from improper influence.
6        (F) Continue to review its policies and practices to
7    determine how best to meet its mission of providing the
8    lowest cost power to the greatest number of people, at any
9    given point in time, in accordance with applicable law.
10        (G) Operate in a structurally insulated, independent,
11    and transparent fashion so that nothing impedes the
12    Agency's mission to secure power at the best prices the
13    market will bear, provided that the Agency meets all
14    applicable legal requirements.
15        (H) Implement renewable energy procurement and
16    training programs throughout the State to diversify
17    Illinois electricity supply, improve reliability, avoid
18    and reduce pollution, reduce peak demand, and enhance
19    public health and well-being of Illinois residents,
20    including low-income residents.
21(Source: P.A. 99-906, eff. 6-1-17.)
 
22    (20 ILCS 3855/1-10)
23    Sec. 1-10. Definitions.
24    "Agency" means the Illinois Power Agency.
25    "Agency loan agreement" means any agreement pursuant to

 

 

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

 

 

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1        under the Illinois Site Remediation Program; or
2            (D) the Illinois Environmental Protection Agency
3        under the Illinois Solid Waste Program; or .
4        (2) located at the site of a coal mine that has
5    permanently ceased coal production, permanently halted any
6    re-mining operations, and is no longer accepting any coal
7    combustion residues; has both completed all clean-up and
8    remediation obligations under the federal Surface Mining
9    and Reclamation Act of 1977 and all applicable Illinois
10    rules and any other clean-up, remediation, or ongoing
11    monitoring to safeguard the health and well-being of the
12    people of the State of Illinois, as well as demonstrated
13    compliance with all applicable federal and State
14    environmental rules and regulations, including, but not
15    limited, to 35 Ill. Adm. Code Part 845 and any rules for
16    historic fill of coal combustion residuals, including any
17    rules finalized in Subdocket A of Illinois Pollution
18    Control Board docket R2020-019.
19    "Clean coal facility" means an electric generating
20facility that uses primarily coal as a feedstock and that
21captures and sequesters carbon dioxide emissions at the
22following levels: at least 50% of the total carbon dioxide
23emissions that the facility would otherwise emit if, at the
24time construction commences, the facility is scheduled to
25commence operation before 2016, at least 70% of the total
26carbon dioxide emissions that the facility would otherwise

 

 

10200HB3666sam001- 263 -LRB102 13525 AMC 28481 a

1emit if, at the time construction commences, the facility is
2scheduled to commence operation during 2016 or 2017, and at
3least 90% of the total carbon dioxide emissions that the
4facility would otherwise emit if, at the time construction
5commences, the facility is scheduled to commence operation
6after 2017. The power block of the clean coal facility shall
7not exceed allowable emission rates for sulfur dioxide,
8nitrogen oxides, carbon monoxide, particulates and mercury for
9a natural gas-fired combined-cycle facility the same size as
10and in the same location as the clean coal facility at the time
11the clean coal facility obtains an approved air permit. All
12coal used by a clean coal facility shall have high volatile
13bituminous rank and greater than 1.7 pounds of sulfur per
14million btu content, unless the clean coal facility does not
15use gasification technology and was operating as a
16conventional coal-fired electric generating facility on June
171, 2009 (the effective date of Public Act 95-1027).
18    "Clean coal SNG brownfield facility" means a facility that
19(1) has commenced construction by July 1, 2015 on an urban
20brownfield site in a municipality with at least 1,000,000
21residents; (2) uses a gasification process to produce
22substitute natural gas; (3) uses coal as at least 50% of the
23total feedstock over the term of any sourcing agreement with a
24utility and the remainder of the feedstock may be either
25petroleum coke or coal, with all such coal having a high
26bituminous rank and greater than 1.7 pounds of sulfur per

 

 

10200HB3666sam001- 264 -LRB102 13525 AMC 28481 a

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

 

 

10200HB3666sam001- 265 -LRB102 13525 AMC 28481 a

1    photovoltaic cells or panels, biodiesel, crops and
2    untreated and unadulterated organic waste biomass, tree
3    waste, and hydropower that does not involve new
4    construction or significant expansion of hydropower dams;
5        (2) is interconnected at the distribution system level
6    of an electric utility as defined in this Section, a
7    municipal utility as defined in this Section that owns or
8    operates electric distribution facilities, a public
9    utility as defined in Section 3-105 of the Public
10    Utilities Act, or an electric cooperative, as defined in
11    Section 3-119 of the Public Utilities Act;
12        (3) credits the value of electricity generated by the
13    facility to the subscribers of the facility; and
14        (4) is limited in nameplate capacity to less than or
15    equal to 5,000 2,000 kilowatts.
16    "Costs incurred in connection with the development and
17construction of a facility" means:
18        (1) the cost of acquisition of all real property,
19    fixtures, and improvements in connection therewith and
20    equipment, personal property, and other property, rights,
21    and easements acquired that are deemed necessary for the
22    operation and maintenance of the facility;
23        (2) financing costs with respect to bonds, notes, and
24    other evidences of indebtedness of the Agency;
25        (3) all origination, commitment, utilization,
26    facility, placement, underwriting, syndication, credit

 

 

10200HB3666sam001- 266 -LRB102 13525 AMC 28481 a

1    enhancement, and rating agency fees;
2        (4) engineering, design, procurement, consulting,
3    legal, accounting, title insurance, survey, appraisal,
4    escrow, trustee, collateral agency, interest rate hedging,
5    interest rate swap, capitalized interest, contingency, as
6    required by lenders, and other financing costs, and other
7    expenses for professional services; and
8        (5) the costs of plans, specifications, site study and
9    investigation, installation, surveys, other Agency costs
10    and estimates of costs, and other expenses necessary or
11    incidental to determining the feasibility of any project,
12    together with such other expenses as may be necessary or
13    incidental to the financing, insuring, acquisition, and
14    construction of a specific project and starting up,
15    commissioning, and placing that project in operation.
16    "Delivery services" has the same definition as found in
17Section 16-102 of the Public Utilities Act.
18    "Delivery year" means the consecutive 12-month period
19beginning June 1 of a given year and ending May 31 of the
20following year.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Director" means the Director of the Illinois Power
24Agency.
25    "Demand-response" means measures that decrease peak
26electricity demand or shift demand from peak to off-peak

 

 

10200HB3666sam001- 267 -LRB102 13525 AMC 28481 a

1periods.
2    "Distributed renewable energy generation device" means a
3device that is:
4        (1) powered by wind, solar thermal energy,
5    photovoltaic cells or panels, biodiesel, crops and
6    untreated and unadulterated organic waste biomass, tree
7    waste, and hydropower that does not involve new
8    construction or significant expansion of hydropower dams,
9    waste heat to power systems, or qualified combined heat
10    and power systems;
11        (2) interconnected at the distribution system level of
12    either an electric utility as defined in this Section, a
13    municipal utility as defined in this Section that owns or
14    operates electric distribution facilities, or a rural
15    electric cooperative as defined in Section 3-119 of the
16    Public Utilities Act;
17        (3) located on the customer side of the customer's
18    electric meter and is primarily used to offset that
19    customer's electricity load; and
20        (4) (blank). limited in nameplate capacity to less
21    than or equal to 2,000 kilowatts.
22    "Energy efficiency" means measures that reduce the amount
23of electricity or natural gas consumed in order to achieve a
24given end use. "Energy efficiency" includes voltage
25optimization measures that optimize the voltage at points on
26the electric distribution voltage system and thereby reduce

 

 

10200HB3666sam001- 268 -LRB102 13525 AMC 28481 a

1electricity consumption by electric customers' end use
2devices. "Energy efficiency" also includes measures that
3reduce the total Btus of electricity, natural gas, and other
4fuels needed to meet the end use or uses.
5    "Electric utility" has the same definition as found in
6Section 16-102 of the Public Utilities Act.
7    "Equitable Energy Future Certification" and "EEFC" are
8synonymous and mean a certification provided to an applicant
9by the Illinois Power Agency where an applicant commits that a
10project will meet one or more of the following criteria: (i)
11more than 50% of the work on the project have or will be
12performed by eligible persons; or (ii) more than 50% of the
13work on the project have or will be done by equity eligible
14contractors. The Agency will establish Equitable Energy Future
15Certification standards for entities where certification by
16individual project is infeasible, which can include
17certification of a portfolio of projects if an entity can
18demonstrate consistent EEFC eligibility across that portfolio.
19    "Equity investment eligible community" or "eligible
20community" are synonymous and mean the geographic areas
21throughout Illinois which would most benefit from equitable
22investments by the State designed to combat discrimination.
23Specifically, the eligible communities shall be defined as the
24following areas:
25        (1) R3 Areas as established pursuant to Section 10-40
26    of the Cannabis Regulation and Tax Act, where residents

 

 

10200HB3666sam001- 269 -LRB102 13525 AMC 28481 a

1    have historically been excluded from economic
2    opportunities, including opportunities in the energy
3    sector; and
4        (2) Environmental justice communities, as defined by
5    the Illinois Power Agency pursuant to the Illinois Power
6    Agency Act, where residents have historically been subject
7    to disproportionate burdens of pollution, including
8    pollution from the energy sector.
9    "Equity eligible persons" or "eligible persons" means
10persons who would most benefit from equitable investments by
11the State designed to combat discrimination, specifically:
12        (1) persons who graduate from or are current or former
13    participants in the Clean Jobs Workforce Network Program,
14    the Clean Energy Contractor Incubator Program, the
15    Illinois Climate Works Preapprenticeship Program,
16    Returning Residents Clean Jobs Training Program, or the
17    Clean Energy Primes Contractor Accelerator Program, and
18    the solar training pipeline and multi-cultural jobs
19    program created in paragraphs (a)(1) and (a)(3) of Section
20    16-108.21 of the Public Utilities Act;
21        (2) persons who are graduates of or currently enrolled
22    in the foster care system;
23        (3) persons who were formerly incarcerated;
24        (4) persons whose primary residence is in an equity
25    investment eligible community.
26    "Equity eligible contractor" means a business that is

 

 

10200HB3666sam001- 270 -LRB102 13525 AMC 28481 a

1majority-owned by eligible persons, or a nonprofit or
2cooperative that is majority-governed by eligible persons, or
3is a natural person that is an eligible person offering
4personal services as an independent contractor.
5    "Facility" means an electric generating unit or a
6co-generating unit that produces electricity along with
7related equipment necessary to connect the facility to an
8electric transmission or distribution system.
9    "General Contractor" means the entity or organization with
10main responsibility for the building of a construction project
11and who is the party signing the prime construction contract
12for the project.
13    "Governmental aggregator" means one or more units of local
14government that individually or collectively procure
15electricity to serve residential retail electrical loads
16located within its or their jurisdiction.
17    "High voltage direct current converter station" means the
18collection of equipment that converts direct current energy
19from a high voltage direct current transmission line into
20alternating current using Voltage Source Conversion technology
21and that is interconnected with transmission or distribution
22assets located in Illinois.
23    "High voltage direct current renewable energy credit"
24means a renewable energy credit associated with a renewable
25energy resource where the renewable energy resource has
26entered into a contract to transmit the energy associated with

 

 

10200HB3666sam001- 271 -LRB102 13525 AMC 28481 a

1such renewable energy credit over high voltage direct current
2transmission facilities.
3    "High voltage direct current transmission facilities"
4means the collection of installed equipment that converts
5alternating current energy in one location to direct current
6and transmits that direct current energy to a high voltage
7direct current converter station using Voltage Source
8Conversion technology. "High voltage direct current
9transmission facilities" includes the high voltage direct
10current converter station itself and associated high voltage
11direct current transmission lines. Notwithstanding the
12preceding, an otherwise qualifying collection of equipment
13does not qualify as high voltage direct current transmission
14facilities unless its developer entered into a project labor
15agreement, is capable of transmitting electricity at 525kv
16with an Illinois converter station located and interconnected
17in the region of the PJM Interconnection, LLC, and the system
18does not operate as a public utility, as that term is defined
19in Section 3-105 of the Public Utilities Act.
20    "Index price" means the real-time energy settlement price
21at the applicable Illinois trading hub, such as PJM-NIHUB or
22MISO-IL, for a given settlement period.
23    "Indexed renewable energy credit" means a tradable credit
24that represents the environmental attributes of one megawatt
25hour of energy produced from a renewable energy resource, the
26price of which shall be calculated by subtracting the strike

 

 

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1price offered by a new utility-scale wind project or a new
2utility-scale photovoltaic project from the index price in a
3given settlement period.
4    "Indexed renewable energy credit counterparty" has the
5same meaning as "public utility" as defined in Section 3-105
6of the Public Utilities Act.
7    "Local government" means a unit of local government as
8defined in Section 1 of Article VII of the Illinois
9Constitution.
10    "Municipality" means a city, village, or incorporated
11town.
12    "Municipal utility" means a public utility owned and
13operated by any subdivision or municipal corporation of this
14State.
15    "Nameplate capacity" means the aggregate inverter
16nameplate capacity in kilowatts AC.
17    "Person" means any natural person, firm, partnership,
18corporation, either domestic or foreign, company, association,
19limited liability company, joint stock company, or association
20and includes any trustee, receiver, assignee, or personal
21representative thereof.
22    "Project" means the planning, bidding, and construction of
23a facility.
24    "Project labor agreement" means a pre-hire collective
25bargaining agreement that covers all terms and conditions of
26employment on a specific construction project and must include

 

 

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1the following:
2        (1) provisions establishing the minimum hourly wage
3    for each class of labor organization employee;
4        (2) provisions establishing the benefits and other
5    compensation for each class of labor organization
6    employee;
7        (3) provisions establishing that no strike or disputes
8    will be engaged in by the labor organization employees;
9        (4) provisions establishing that no lockout or
10    disputes will be engaged in by the general contractor
11    building the project; and
12        (5) provisions for minorities and women, as defined
13    under the Business Enterprise for Minorities, Women, and
14    Persons with Disabilities Act, setting forth goals for
15    apprenticeship hours to be performed by minorities and
16    women and setting forth goals for total hours to be
17    performed by underrepresented minorities and women.
18    A labor organization and the general contractor building
19the project shall have the authority to include other terms
20and conditions as they deem necessary.
21    "Public utility" has the same definition as found in
22Section 3-105 of the Public Utilities Act.
23    "Qualified combined heat and power systems" means systems
24that, either simultaneously or sequentially, produce
25electricity and useful thermal energy from a single fuel
26source. Such systems are eligible for "renewable energy

 

 

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1credits" in an amount equal to its total energy output where a
2renewable fuel is consumed or in an amount equal to the net
3reduction in nonrenewable fuel consumed on a total energy
4output basis.
5    "Real property" means any interest in land together with
6all structures, fixtures, and improvements thereon, including
7lands under water and riparian rights, any easements,
8covenants, licenses, leases, rights-of-way, uses, and other
9interests, together with any liens, judgments, mortgages, or
10other claims or security interests related to real property.
11    "Renewable energy credit" means a tradable credit that
12represents the environmental attributes of one megawatt hour
13of energy produced from a renewable energy resource.
14    "Renewable energy resources" includes energy and its
15associated renewable energy credit or renewable energy credits
16from wind, solar thermal energy, photovoltaic cells and
17panels, biodiesel, anaerobic digestion, crops and untreated
18and unadulterated organic waste biomass, tree waste, and
19hydropower that does not involve new construction or
20significant expansion of hydropower dams, waste heat to power
21systems, or qualified combined heat and power systems. For
22purposes of this Act, landfill gas produced in the State is
23considered a renewable energy resource. "Renewable energy
24resources" does not include the incineration or burning of
25tires, garbage, general household, institutional, and
26commercial waste, industrial lunchroom or office waste,

 

 

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1landscape waste other than tree waste, railroad crossties,
2utility poles, or construction or demolition debris, other
3than untreated and unadulterated waste wood. "Renewable energy
4resources" also includes high voltage direct current renewable
5energy credits and the associated energy converted to
6alternating current by a high voltage direct current converter
7station to the extent that: (1) the generator of such
8renewable energy resource contracted with a third party to
9transmit the energy over the high voltage direct current
10transmission facilities, and (2) the third-party contracting
11for delivery of renewable energy resources over the high
12voltage direct current transmission facilities have ownership
13rights over the unretired associated high voltage direct
14current renewable energy credit.
15    "Retail customer" has the same definition as found in
16Section 16-102 of the Public Utilities Act.
17    "Revenue bond" means any bond, note, or other evidence of
18indebtedness issued by the Authority, the principal and
19interest of which is payable solely from revenues or income
20derived from any project or activity of the Agency.
21    "Seller" means the supplier of a renewable energy credit
22produced from a new utility-scale wind project or a new
23utility-scale photovoltaic project.
24    "Sequester" means permanent storage of carbon dioxide by
25injecting it into a saline aquifer, a depleted gas reservoir,
26or an oil reservoir, directly or through an enhanced oil

 

 

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1recovery process that may involve intermediate storage,
2regardless of whether these activities are conducted by a
3clean coal facility, a clean coal SNG facility, a clean coal
4SNG brownfield facility, or a party with which a clean coal
5facility, clean coal SNG facility, or clean coal SNG
6brownfield facility has contracted for such purposes.
7    "Service area" has the same definition as found in Section
816-102 of the Public Utilities Act.
9    "Settlement period" means the period of time utilized by
10MISO and PJM and their successor organizations as the basis
11for settlement calculations in the real-time energy market.
12    "Sourcing agreement" means (i) in the case of an electric
13utility, an agreement between the owner of a clean coal
14facility and such electric utility, which agreement shall have
15terms and conditions meeting the requirements of paragraph (3)
16of subsection (d) of Section 1-75, (ii) in the case of an
17alternative retail electric supplier, an agreement between the
18owner of a clean coal facility and such alternative retail
19electric supplier, which agreement shall have terms and
20conditions meeting the requirements of Section 16-115(d)(5) of
21the Public Utilities Act, and (iii) in case of a gas utility,
22an agreement between the owner of a clean coal SNG brownfield
23facility and the gas utility, which agreement shall have the
24terms and conditions meeting the requirements of subsection
25(h-1) of Section 9-220 of the Public Utilities Act.
26    "Strike price" means a contract price for energy and

 

 

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1renewable energy credits from a new utility-scale wind project
2or a new utility-scale photovoltaic project.
3    "Subscriber" means a person who (i) takes delivery service
4from an electric utility, and (ii) has a subscription of no
5less than 200 watts to a community renewable generation
6project that is located in the electric utility's service
7area. No subscriber's subscriptions may total more than 40% of
8the nameplate capacity of an individual community renewable
9generation project. Entities that are affiliated by virtue of
10a common parent shall not represent multiple subscriptions
11that total more than 40% of the nameplate capacity of an
12individual community renewable generation project.
13    "Subscription" means an interest in a community renewable
14generation project expressed in kilowatts, which is sized
15primarily to offset part or all of the subscriber's
16electricity usage.
17    "Substitute natural gas" or "SNG" means a gas manufactured
18by gasification of hydrocarbon feedstock, which is
19substantially interchangeable in use and distribution with
20conventional natural gas.
21    "Total resource cost test" or "TRC test" means a standard
22that is met if, for an investment in energy efficiency or
23demand-response measures, the benefit-cost ratio is greater
24than one. The benefit-cost ratio is the ratio of the net
25present value of the total benefits of the program to the net
26present value of the total costs as calculated over the

 

 

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

 

 

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1facility that:
2        (1) generates electricity using photovoltaic cells;
3    and
4        (2) has a nameplate capacity that is greater than
5    5,000 2,000 kilowatts.
6    "Utility-scale wind project" means an electric generating
7facility that:
8        (1) generates electricity using wind; and
9        (2) has a nameplate capacity that is greater than
10    5,000 2,000 kilowatts.
11    "Waste Heat to Power Systems" means systems that capture
12and generate electricity from energy that would otherwise be
13lost to the atmosphere without the use of additional fuel.
14    "Zero emission credit" means a tradable credit that
15represents the environmental attributes of one megawatt hour
16of energy produced from a zero emission facility.
17    "Zero emission facility" means a facility that: (1) is
18fueled by nuclear power; and (2) is interconnected with PJM
19Interconnection, LLC or the Midcontinent Independent System
20Operator, Inc., or their successors.
21(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
 
22    (20 ILCS 3855/1-20)
23    Sec. 1-20. General powers and duties of the Agency.
24    (a) The Agency is authorized to do each of the following:
25        (1) Develop electricity procurement plans to ensure

 

 

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1    adequate, reliable, affordable, efficient, and
2    environmentally sustainable electric service at the lowest
3    total cost over time, taking into account any benefits of
4    price stability, for electric utilities that on December
5    31, 2005 provided electric service to at least 100,000
6    customers in Illinois and for small multi-jurisdictional
7    electric utilities that (A) on December 31, 2005 served
8    less than 100,000 customers in Illinois and (B) request a
9    procurement plan for their Illinois jurisdictional load.
10    Except as provided in paragraph (1.5) of this subsection
11    (a), the electricity procurement plans shall be updated on
12    an annual basis and shall include electricity generated
13    from renewable resources sufficient to achieve the
14    standards specified in this Act. Beginning with the
15    delivery year commencing June 1, 2017, develop procurement
16    plans to include zero emission credits generated from zero
17    emission facilities sufficient to achieve the standards
18    specified in this Act. Beginning with the delivery year
19    commencing on June 1, 2022, the Agency is authorized to
20    develop carbon mitigation credit procurement plans to
21    include carbon mitigation credits generated from
22    carbon-free energy resources sufficient to achieve the
23    standards specified in this Act.
24        (1.5) Develop a long-term renewable resources
25    procurement plan in accordance with subsection (c) of
26    Section 1-75 of this Act for renewable energy credits in

 

 

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1    amounts sufficient to achieve the standards specified in
2    this Act for delivery years commencing June 1, 2017 and
3    for the programs and renewable energy credits specified in
4    Section 1-56 of this Act. Electricity procurement plans
5    for delivery years commencing after May 31, 2017, shall
6    not include procurement of renewable energy resources.
7        (2) Conduct competitive procurement processes to
8    procure the supply resources identified in the electricity
9    procurement plan, pursuant to Section 16-111.5 of the
10    Public Utilities Act, and, for the delivery year
11    commencing June 1, 2017, conduct procurement processes to
12    procure zero emission credits from zero emission
13    facilities, under subsection (d-5) of Section 1-75 of this
14    Act. For the delivery year commencing June 1, 2022, the
15    Agency is authorized to conduct procurement processes to
16    procure carbon mitigation credits from carbon-free energy
17    resources, under subsection (d-10) of Section 1-75 of this
18    Act.
19        (2.5) Beginning with the procurement for the 2017
20    delivery year, conduct competitive procurement processes
21    and implement programs to procure renewable energy credits
22    identified in the long-term renewable resources
23    procurement plan developed and approved under subsection
24    (c) of Section 1-75 of this Act and Section 16-111.5 of the
25    Public Utilities Act.
26        (2.10) Oversee the procurement by electric utilities

 

 

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1    that served more than 300,000 customers in this State as
2    of January 1, 2019 of renewable energy credits from new
3    renewable energy facilities to be installed, along with
4    energy storage facilities, at or adjacent to the sites of
5    electric generating facilities that burned coal as their
6    primary fuel source as of January 1, 2016 in accordance
7    with subsection (c-5) of Section 1-75 of this Act.
8        (3) Develop electric generation and co-generation
9    facilities that use indigenous coal or renewable
10    resources, or both, financed with bonds issued by the
11    Illinois Finance Authority.
12        (4) Supply electricity from the Agency's facilities at
13    cost to one or more of the following: municipal electric
14    systems, governmental aggregators, or rural electric
15    cooperatives in Illinois.
16    (b) Except as otherwise limited by this Act, the Agency
17has all of the powers necessary or convenient to carry out the
18purposes and provisions of this Act, including without
19limitation, each of the following:
20        (1) To have a corporate seal, and to alter that seal at
21    pleasure, and to use it by causing it or a facsimile to be
22    affixed or impressed or reproduced in any other manner.
23        (2) To use the services of the Illinois Finance
24    Authority necessary to carry out the Agency's purposes.
25        (3) To negotiate and enter into loan agreements and
26    other agreements with the Illinois Finance Authority.

 

 

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1        (4) To obtain and employ personnel and hire
2    consultants that are necessary to fulfill the Agency's
3    purposes, and to make expenditures for that purpose within
4    the appropriations for that purpose.
5        (5) To purchase, receive, take by grant, gift, devise,
6    bequest, or otherwise, lease, or otherwise acquire, own,
7    hold, improve, employ, use, and otherwise deal in and
8    with, real or personal property whether tangible or
9    intangible, or any interest therein, within the State.
10        (6) To acquire real or personal property, whether
11    tangible or intangible, including without limitation
12    property rights, interests in property, franchises,
13    obligations, contracts, and debt and equity securities,
14    and to do so by the exercise of the power of eminent domain
15    in accordance with Section 1-21; except that any real
16    property acquired by the exercise of the power of eminent
17    domain must be located within the State.
18        (7) To sell, convey, lease, exchange, transfer,
19    abandon, or otherwise dispose of, or mortgage, pledge, or
20    create a security interest in, any of its assets,
21    properties, or any interest therein, wherever situated.
22        (8) To purchase, take, receive, subscribe for, or
23    otherwise acquire, hold, make a tender offer for, vote,
24    employ, sell, lend, lease, exchange, transfer, or
25    otherwise dispose of, mortgage, pledge, or grant a
26    security interest in, use, and otherwise deal in and with,

 

 

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1    bonds and other obligations, shares, or other securities
2    (or interests therein) issued by others, whether engaged
3    in a similar or different business or activity.
4        (9) To make and execute agreements, contracts, and
5    other instruments necessary or convenient in the exercise
6    of the powers and functions of the Agency under this Act,
7    including contracts with any person, including personal
8    service contracts, or with any local government, State
9    agency, or other entity; and all State agencies and all
10    local governments are authorized to enter into and do all
11    things necessary to perform any such agreement, contract,
12    or other instrument with the Agency. No such agreement,
13    contract, or other instrument shall exceed 40 years.
14        (10) To lend money, invest and reinvest its funds in
15    accordance with the Public Funds Investment Act, and take
16    and hold real and personal property as security for the
17    payment of funds loaned or invested.
18        (11) To borrow money at such rate or rates of interest
19    as the Agency may determine, issue its notes, bonds, or
20    other obligations to evidence that indebtedness, and
21    secure any of its obligations by mortgage or pledge of its
22    real or personal property, machinery, equipment,
23    structures, fixtures, inventories, revenues, grants, and
24    other funds as provided or any interest therein, wherever
25    situated.
26        (12) To enter into agreements with the Illinois

 

 

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1    Finance Authority to issue bonds whether or not the income
2    therefrom is exempt from federal taxation.
3        (13) To procure insurance against any loss in
4    connection with its properties or operations in such
5    amount or amounts and from such insurers, including the
6    federal government, as it may deem necessary or desirable,
7    and to pay any premiums therefor.
8        (14) To negotiate and enter into agreements with
9    trustees or receivers appointed by United States
10    bankruptcy courts or federal district courts or in other
11    proceedings involving adjustment of debts and authorize
12    proceedings involving adjustment of debts and authorize
13    legal counsel for the Agency to appear in any such
14    proceedings.
15        (15) To file a petition under Chapter 9 of Title 11 of
16    the United States Bankruptcy Code or take other similar
17    action for the adjustment of its debts.
18        (16) To enter into management agreements for the
19    operation of any of the property or facilities owned by
20    the Agency.
21        (17) To enter into an agreement to transfer and to
22    transfer any land, facilities, fixtures, or equipment of
23    the Agency to one or more municipal electric systems,
24    governmental aggregators, or rural electric agencies or
25    cooperatives, for such consideration and upon such terms
26    as the Agency may determine to be in the best interest of

 

 

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1    the residents citizens of Illinois.
2        (18) To enter upon any lands and within any building
3    whenever in its judgment it may be necessary for the
4    purpose of making surveys and examinations to accomplish
5    any purpose authorized by this Act.
6        (19) To maintain an office or offices at such place or
7    places in the State as it may determine.
8        (20) To request information, and to make any inquiry,
9    investigation, survey, or study that the Agency may deem
10    necessary to enable it effectively to carry out the
11    provisions of this Act.
12        (21) To accept and expend appropriations.
13        (22) To engage in any activity or operation that is
14    incidental to and in furtherance of efficient operation to
15    accomplish the Agency's purposes, including hiring
16    employees that the Director deems essential for the
17    operations of the Agency.
18        (23) To adopt, revise, amend, and repeal rules with
19    respect to its operations, properties, and facilities as
20    may be necessary or convenient to carry out the purposes
21    of this Act, subject to the provisions of the Illinois
22    Administrative Procedure Act and Sections 1-22 and 1-35 of
23    this Act.
24        (24) To establish and collect charges and fees as
25    described in this Act.
26        (25) To conduct competitive gasification feedstock

 

 

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1    procurement processes to procure the feedstocks for the
2    clean coal SNG brownfield facility in accordance with the
3    requirements of Section 1-78 of this Act.
4        (26) To review, revise, and approve sourcing
5    agreements and mediate and resolve disputes between gas
6    utilities and the clean coal SNG brownfield facility
7    pursuant to subsection (h-1) of Section 9-220 of the
8    Public Utilities Act.
9        (27) To request, review and accept proposals, execute
10    contracts, purchase renewable energy credits and otherwise
11    dedicate funds from the Illinois Power Agency Renewable
12    Energy Resources Fund to create and carry out the
13    objectives of the Illinois Solar for All Program program
14    in accordance with Section 1-56 of this Act.
15        (28) To ensure Illinois residents and business benefit
16    from programs administered by the Agency and are properly
17    protected from any deceptive or misleading marketing
18    practices by participants in the Agency's programs and
19    procurements.
20    (c) In conducting the procurement of electricity or other
21products, the Agency shall not procure any products or
22services from persons or organizations that are in violation
23of the Displaced Energy Workers Bill of Rights, as provided
24under the Energy Community Reinvestment Act at the time of the
25procurement event or fail to comply the labor standards
26established in subparagraph (Q) of paragraph (1) of subsection

 

 

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1(c) of Section 1-75.
2(Source: P.A. 99-906, eff. 6-1-17.)
 
3    (20 ILCS 3855/1-35)
4    Sec. 1-35. Agency rules. The Agency shall adopt rules as
5may be necessary and appropriate for the operation of the
6Agency. In addition to other rules relevant to the operation
7of the Agency, the Agency shall adopt rules that accomplish
8each of the following:
9        (1) Establish procedures for monitoring the
10    administration of any contract administered directly or
11    indirectly by the Agency; except that the procedures shall
12    not extend to executed contracts between electric
13    utilities and their suppliers.
14        (2) If deemed necessary by the Agency, establish
15    Establish procedures for the recovery of costs incurred in
16    connection with the development and construction of a
17    facility should the Agency cancel a project, provided that
18    no such costs shall be passed on to public utilities or
19    their customers or paid from the Illinois Power Agency
20    Operations Fund.
21        (3) Implement accounting rules and a system of
22    accounts, in accordance with State law, permitting all
23    reporting (i) required by the State, (ii) required under
24    this Act, (iii) required by the Authority, or (iv)
25    required under the Public Utilities Act.

 

 

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1    The Agency shall not adopt any rules that infringe upon
2the authority granted to the Commission.
3(Source: P.A. 95-481, eff. 8-28-07.)
 
4    (20 ILCS 3855/1-56)
5    Sec. 1-56. Illinois Power Agency Renewable Energy
6Resources Fund; Illinois Solar for All Program.
7    (a) The Illinois Power Agency Renewable Energy Resources
8Fund is created as a special fund in the State treasury.
9    (b) The Illinois Power Agency Renewable Energy Resources
10Fund shall be administered by the Agency as described in this
11subsection (b), provided that the changes to this subsection
12(b) made by this amendatory Act of the 99th General Assembly
13shall not interfere with existing contracts under this
14Section.
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 provides shall include
22    incentives for low-income distributed generation and
23    community solar projects, and other associated approved
24    expenditures. The objectives of the Illinois Solar for All
25    Program are to bring photovoltaics to low-income

 

 

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1    communities in this State in a manner that maximizes the
2    development of new photovoltaic generating facilities, to
3    create a long-term, low-income solar marketplace
4    throughout this State, to integrate, through interaction
5    with stakeholders, with existing energy efficiency
6    initiatives, and to minimize administrative costs. The
7    Illinois Solar for All Program shall be implemented in a
8    manner that seeks to minimize administrative costs, and
9    maximize efficiencies and synergies available through
10    coordination with similar initiatives, including the
11    Adjustable Block program described in subparagraphs (K)
12    through (M) of paragraph (1) of subsection (c) of Section
13    1-75, energy efficiency programs, job training programs,
14    and community action agencies. The Agency shall strive to
15    ensure that renewable energy credits procured through the
16    Illinois Solar for All Program and each of its subprograms
17    are purchased from projects across the breadth of
18    low-income and environmental justice communities in
19    Illinois, including both urban and rural communities, are
20    not concentrated in a few communities, and do not exclude
21    particular low-income or environmental justice
22    communities. The Agency shall include a description of its
23    proposed approach to the design, administration,
24    implementation and evaluation of the Illinois Solar for
25    All Program, as part of the long-term renewable resources
26    procurement plan authorized by subsection (c) of Section

 

 

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1    1-75 of this Act, and the program shall be designed to grow
2    the low-income solar market. The Agency or utility, as
3    applicable, shall purchase renewable energy credits from
4    the (i) photovoltaic distributed renewable energy
5    generation projects and (ii) community solar projects that
6    are procured under procurement processes authorized by the
7    long-term renewable resources procurement plans approved
8    by the Commission.
9        The Illinois Solar for All Program shall include the
10    program offerings described in subparagraphs (A) through
11    (E) (D) of this paragraph (2), which the Agency shall
12    implement through contracts with third-party providers
13    and, subject to appropriation, pay the approximate amounts
14    identified using monies available in the Illinois Power
15    Agency Renewable Energy Resources Fund. Each contract that
16    provides for the installation of solar facilities shall
17    provide that the solar facilities will produce energy and
18    economic benefits, at a level determined by the Agency to
19    be reasonable, for the participating low income customers.
20    The monies available in the Illinois Power Agency
21    Renewable Energy Resources Fund and not otherwise
22    committed to contracts executed under subsection (i) of
23    this Section, as well as, in the case of the programs
24    described under subparagraphs (A) through (E) of this
25    paragraph (2), funding authorized pursuant to subparagraph
26    (O) of paragraph (1) of subsection (c) of Section 1-75 of

 

 

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1    this Act, shall initially be allocated among the programs
2    described in this paragraph (2), as follows: 35% 22.5% of
3    these funds shall be allocated to programs described in
4    subparagraphs subparagraph (A) and (E) of this paragraph
5    (2), 40% 37.5% of these funds shall be allocated to
6    programs described in subparagraph (B) of this paragraph
7    (2), and 25% 15% of these funds shall be allocated to
8    programs described in subparagraph (C) of this paragraph
9    (2), and 25% of these funds, but in no event more than
10    $50,000,000, shall be allocated to programs described in
11    subparagraph (D) of this paragraph (2). The allocation of
12    funds among subparagraphs (A), (B), or (C), and (E) of
13    this paragraph (2) may be changed if the Agency, after
14    receiving input through a stakeholder process, or
15    administrator, through delegated authority, determines
16    incentives in subparagraphs (A), (B), or (C), or (E) of
17    this paragraph (2) have not been adequately subscribed to
18    fully utilize available Illinois Solar for All Program
19    funds the Illinois Power Agency Renewable Energy Resources
20    Fund. The determination shall include input through a
21    stakeholder process. The program offerings described in
22    subparagraphs (A) through (D) of this paragraph (2) shall
23    also be implemented through contracts funded from such
24    additional amounts as are allocated to one or more of the
25    programs in the long-term renewable resources procurement
26    plans as specified in subsection (c) of Section 1-75 of

 

 

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

 

 

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1    shall endeavor to coordinate with the job training
2    programs described in paragraph (1) of subsection (a) of
3    Section 16-108.12 of the Public Utilities Act and in the
4    Energy Transition Act.
5        The Agency shall make every effort to ensure that
6    small and emerging businesses, particularly those located
7    in low-income and environmental justice communities, are
8    able to participate in the Illinois Solar for All Program.
9    These efforts may include, but shall not be limited to,
10    proactive support from the program administrator,
11    different or preferred access to subprograms and
12    administrator-identified customers or grassroots
13    education provider-identified customers, and different
14    incentive levels. The Agency shall report on progress and
15    barriers to participation of small and emerging businesses
16    in the Illinois Solar for All Program at least once a year.
17    The report shall be made available on the Agency's website
18    and, in years when the Agency is updating its long-term
19    renewable resources procurement plan, included in that
20    Plan.
21            (A) Low-income single-family and small multifamily
22        solar distributed generation incentive. This program
23        will provide incentives to low-income customers,
24        either directly or through solar providers, to
25        increase the participation of low-income households in
26        photovoltaic on-site distributed generation at

 

 

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1        residential buildings containing one to 4 units.
2        Companies participating in this program that install
3        solar panels shall commit to hiring job trainees for a
4        portion of their low-income installations, and an
5        administrator shall facilitate partnering the
6        companies that install solar panels with entities that
7        provide solar panel installation job training. It is a
8        goal of this program that a minimum of 25% of the
9        incentives for this program be allocated to projects
10        located within environmental justice communities.
11        Contracts entered into under this paragraph may be
12        entered into with an entity that will develop and
13        administer the program and shall also include
14        contracts for renewable energy credits from the
15        photovoltaic distributed generation that is the
16        subject of the program, as set forth in the long-term
17        renewable resources procurement plan. Additionally:
18                (i) The Agency shall reserve a portion of this
19            program for projects that promote energy
20            sovereignty through ownership of projects by
21            low-income households, not-for-profit
22            organizations providing services to low-income
23            households, affordable housing owners, community
24            cooperatives, or community-based limited liability
25            companies providing services to low-income
26            households. Projects that feature energy ownership

 

 

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1            should ensure that local people have control of
2            the project and reap benefits from the project
3            over and above energy bill savings. The Agency may
4            consider the inclusion of projects that promote
5            ownership over time or that involve partial
6            project ownership by communities, as promoting
7            energy sovereignty. Incentives for projects that
8            promote energy sovereignty may be higher than
9            incentives for equivalent projects that do not
10            promote energy sovereignty under this same
11            program.
12                (ii) Through its long-term renewable resources
13            procurement plan, the Agency shall consider
14            additional program and contract requirements to
15            ensure faithful compliance by applicants
16            benefiting from preferences for projects
17            designated to promote energy sovereignty. The
18            Agency shall make every effort to enable solar
19            providers already participating in the Adjustable
20            Block-Program under subparagraph (K) of paragraph
21            (1) of subsection (c) of Section 1-75 of this Act,
22            and particularly solar providers developing
23            projects under item (i) of subparagraph (K) of
24            paragraph (1) of subsection (c) of Section 1-75 of
25            this Act to easily participate in the Low-Income
26            Distributed Generation Incentive program described

 

 

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1            under this subparagraph (A), and vice versa. This
2            effort may include, but shall not be limited to,
3            utilizing similar or the same application systems
4            and processes, similar or the same forms and
5            formats of communication, and providing active
6            outreach to companies participating in one program
7            but not the other. The Agency shall report on
8            efforts made to encourage this cross-participation
9            in its long-term renewable resources procurement
10            plan.
11            (B) Low-Income Community Solar Project Initiative.
12        Incentives shall be offered to low-income customers,
13        either directly or through developers, to increase the
14        participation of low-income subscribers of community
15        solar projects. The developer of each project shall
16        identify its partnership with community stakeholders
17        regarding the location, development, and participation
18        in the project, provided that nothing shall preclude a
19        project from including an anchor tenant that does not
20        qualify as low-income. Companies participating in this
21        program that develop or install solar projects shall
22        commit to hiring job trainees for a portion of their
23        low-income installations, and an administrator shall
24        facilitate partnering the companies that install solar
25        projects with entities that provide solar installation
26        and related job training. Incentives should also be

 

 

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1        offered to community solar projects that are 100%
2        low-income subscriber owned, which includes low-income
3        households, not-for-profit organizations, and
4        affordable housing owners. It is a goal of this
5        program that a minimum of 25% of the incentives for
6        this program be allocated to community photovoltaic
7        projects in environmental justice communities. The
8        Agency shall reserve a portion of this program for
9        projects that promote energy sovereignty through
10        ownership of projects by low-income households,
11        not-for-profit organizations providing services to
12        low-income households, affordable housing owners, or
13        community-based limited liability companies providing
14        services to low-income households. Projects that
15        feature energy ownership should ensure that local
16        people have control of the project and reap benefits
17        from the project over and above energy bill savings.
18        The Agency may consider the inclusion of projects that
19        promote ownership over time or that involve partial
20        project ownership by communities, as promoting energy
21        sovereignty. Incentives for projects that promote
22        energy sovereignty may be higher than incentives for
23        equivalent projects that do not promote energy
24        sovereignty under this same program. Contracts entered
25        into under this paragraph may be entered into with
26        developers and shall also include contracts for

 

 

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1        renewable energy credits related to the program.
2            (C) Incentives for non-profits and public
3        facilities. Under this program funds shall be used to
4        support on-site photovoltaic distributed renewable
5        energy generation devices to serve the load associated
6        with not-for-profit customers and to support
7        photovoltaic distributed renewable energy generation
8        that uses photovoltaic technology to serve the load
9        associated with public sector customers taking service
10        at public buildings. Companies participating in this
11        program that develop or install solar projects shall
12        commit to hiring job trainees for a portion of their
13        low-income installations, and an administrator shall
14        facilitate partnering the companies that install solar
15        projects with entities that provide solar installation
16        and related job training. Through its long-term
17        renewable resources procurement plan, the Agency shall
18        consider additional program and contract requirements
19        to ensure faithful compliance by applicants benefiting
20        from preferences for projects designated to promote
21        energy sovereignty. It is a goal of this program that
22        at least 25% of the incentives for this program be
23        allocated to projects located in environmental justice
24        communities. Contracts entered into under this
25        paragraph may be entered into with an entity that will
26        develop and administer the program or with developers

 

 

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

 

 

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1        under this subparagraph (D) shall not be included in
2        the utility's ratebase.
3            (E) Low-income large multifamily solar incentive.
4        This program shall 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 at
8        residential buildings with 5 or more units. Companies
9        participating in this program that develop or install
10        solar projects shall commit to hiring job trainees for
11        a portion of their low-income installations, and an
12        administrator shall facilitate partnering the
13        companies that install solar projects with entities
14        that provide solar installation and related job
15        training. It is a goal of this program that a minimum
16        of 25% of the incentives for this program be allocated
17        to projects located within environmental justice
18        communities. The Agency shall reserve a portion of
19        this program for projects that promote energy
20        sovereignty through ownership of projects by
21        low-income households, not-for-profit organizations
22        providing services to low-income households,
23        affordable housing owners, or community-based limited
24        liability companies providing services to low-income
25        households. Projects that feature energy ownership
26        should ensure that local people have control of the

 

 

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1        project and reap benefits from the project over and
2        above energy bill savings. The Agency may consider the
3        inclusion of projects that promote ownership over time
4        or that involve partial project ownership by
5        communities, as promoting energy sovereignty.
6        Incentives for projects that promote energy
7        sovereignty may be higher than incentives for
8        equivalent projects that do not promote energy
9        sovereignty under this same program. Contracts entered
10        into under this paragraph may be entered into with an
11        entity that will develop and administer the program
12        and shall include contracts for renewable energy
13        credits from the photovoltaic distributed generation
14        that is the subject of the program, as set forth in the
15        long-term renewable resources procurement plan.
16        The requirement that a qualified person, as defined in
17    paragraph (1) of subsection (i) of this Section, install
18    photovoltaic devices does not apply to the Illinois Solar
19    for All Program described in this subsection (b).
20        In addition to the programs outlined in paragraphs (A)
21    through (E), the Agency and other parties may propose
22    additional programs through the Long-Term Renewable
23    Resources Procurement Plan developed and approved under
24    paragraph (5) of subsection (b) of Section 16-111.5 of the
25    Public Utilities Act. Additional programs may target
26    market segments not specified above and may also include

 

 

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1    incentives targeted to increase the uptake of
2    nonphotovoltaic technologies by low-income customers,
3    including energy storage paired with photovoltaics, if the
4    Commission determines that the Illinois Solar for All
5    Program would provide greater benefits to the public
6    health and well-being of low-income residents through also
7    supporting that additional program versus supporting
8    programs already authorized.
9        (3) Costs associated with the Illinois Solar for All
10    Program and its components described in paragraph (2) of
11    this subsection (b), including, but not limited to, costs
12    associated with procuring experts, consultants, and the
13    program administrator referenced in this subsection (b)
14    and related incremental costs, costs related to income
15    verification and facilitating customer participation in
16    the program, and costs related to the evaluation of the
17    Illinois Solar for All Program, may be paid for using
18    monies in the Illinois Power Agency Renewable Energy
19    Resources Fund, and funds allocated pursuant to
20    subparagraph (O) of paragraph (1) of subsection (c) of
21    Section 1-75, but the Agency or program administrator
22    shall strive to minimize costs in the implementation of
23    the program. The Agency or contracting electric utility
24    shall purchase renewable energy credits from generation
25    that is the subject of a contract under subparagraphs (A)
26    through (E) (D) of this paragraph (2) of this subsection

 

 

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1    (b), and may pay for such renewable energy credits through
2    an upfront payment per installed kilowatt of nameplate
3    capacity paid once the device is interconnected at the
4    distribution system level of the interconnecting utility
5    and verified as is energized. Payments for renewable
6    energy credits The payment shall be in exchange for an
7    assignment of all renewable energy credits generated by
8    the system during the first 15 years of operation and
9    shall be structured to overcome barriers to participation
10    in the solar market by the low-income community. The
11    incentives provided for in this Section may be implemented
12    through the pricing of renewable energy credits where the
13    prices paid for the credits are higher than the prices
14    from programs offered under subsection (c) of Section 1-75
15    of this Act to account for the additional capital
16    necessary to successfully access targeted market segments
17    incentives. The Agency shall ensure collaboration with
18    community agencies, and allocate up to 5% of the funds
19    available under the Illinois Solar for All Program to
20    community-based groups to assist in grassroots education
21    efforts related to the Illinois Solar for All Program. The
22    Agency or contracting electric utility shall retire any
23    renewable energy credits purchased under from this program
24    and the credits shall count towards the obligation under
25    subsection (c) of Section 1-75 of this Act for the
26    electric utility to which the project is interconnected,

 

 

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1    if applicable.
2        The Agency shall direct that up to 5% of the funds
3    available under the Illinois Solar for All Program to
4    community-based groups and other qualifying organizations
5    to assist in community-driven education efforts related to
6    the Illinois Solar for All Program, including general
7    energy education, job training program outreach efforts,
8    and other activities deemed to be qualified by the Agency.
9    Grassroots education funding shall not be used to support
10    the marketing by solar project development firms and
11    organizations, unless such education provides equal
12    opportunities for all applicable firms and organizations.
13        (4) The Agency shall, consistent with the requirements
14    of this subsection (b), propose the Illinois Solar for All
15    Program terms, conditions, and requirements, including the
16    prices to be paid for renewable energy credits, and which
17    prices may be determined through a formula, through the
18    development, review, and approval of the Agency's
19    long-term renewable resources procurement plan described
20    in subsection (c) of Section 1-75 of this Act and Section
21    16-111.5 of the Public Utilities Act. In the course of the
22    Commission proceeding initiated to review and approve the
23    plan, including the Illinois Solar for All Program
24    proposed by the Agency, a party may propose an additional
25    low-income solar or solar incentive program, or
26    modifications to the programs proposed by the Agency, and

 

 

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

 

 

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1    Illinois Solar for All Program, each administrator shall
2    periodically submit reports to the Agency and Commission
3    for each program that it administers, at appropriate
4    intervals to be identified by the Agency in its long-term
5    renewable resources procurement plan, provided that the
6    reporting interval is at least quarterly. The third-party
7    program administrator may be, but need not be, the same
8    administrator as for the Adjustable Block program
9    described in subparagraphs (K) through (M) of paragraph
10    (1) of subsection (c) of Section 1-75. The Agency, through
11    its long-term renewable resources procurement plan
12    approval process, shall also determine if individual
13    subprograms of the Illinois Solar for All Program are
14    better served by a different or separate Program
15    Administrator.
16        The third-party administrator's responsibilities
17    shall also include facilitating placement for graduates of
18    Illinois-based renewable energy-specific job training
19    programs, including the Clean Jobs Workforce Network
20    Program and the Illinois Climate Works Preapprenticeship
21    Program administered by the Department of Commerce and
22    Economic Opportunity and programs administered under
23    Section 16-108.12 of the Public Utilities Act. To increase
24    the uptake of trainees by participating firms, the
25    administrator shall also develop a web-based clearinghouse
26    for information available to both job training program

 

 

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1    graduates and firms participating, directly or indirectly,
2    in Illinois solar incentive programs. The program
3    administrator shall also coordinate its activities with
4    entities implementing electric and natural gas
5    income-qualified energy efficiency programs, including
6    customer referrals to and from such programs, and connect
7    prospective low-income solar customers with any existing
8    deferred maintenance programs where applicable.
9        (6) The long-term renewable resources procurement plan
10    shall also provide for an independent evaluation of the
11    Illinois Solar for All Program. At least every 2 years,
12    the Agency shall select an independent evaluator to review
13    and report on the Illinois Solar for All Program and the
14    performance of the third-party program administrator of
15    the Illinois Solar for All Program. The evaluation shall
16    be based on objective criteria developed through a public
17    stakeholder process. The process shall include feedback
18    and participation from Illinois Solar for All Program
19    stakeholders, including participants and organizations in
20    environmental justice and historically underserved
21    communities. The report shall include a summary of the
22    evaluation of the Illinois Solar for All Program based on
23    the stakeholder developed objective criteria. The report
24    shall include the number of projects installed; the total
25    installed capacity in kilowatts; the average cost per
26    kilowatt of installed capacity to the extent reasonably

 

 

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1    obtainable by the Agency; the number of jobs or job
2    opportunities created; economic, social, and environmental
3    benefits created; and the total administrative costs
4    expended by the Agency and program administrator to
5    implement and evaluate the program. The report shall be
6    delivered to the Commission and posted on the Agency's
7    website, and shall be used, as needed, to revise the
8    Illinois Solar for All Program. The Commission shall also
9    consider the results of the evaluation as part of its
10    review of the long-term renewable resources procurement
11    plan under subsection (c) of Section 1-75 of this Act.
12        (7) If additional funding for the programs described
13    in this subsection (b) is available under subsection (k)
14    of Section 16-108 of the Public Utilities Act, then the
15    Agency shall submit a procurement plan to the Commission
16    no later than September 1, 2018, that proposes how the
17    Agency will procure programs on behalf of the applicable
18    utility. After notice and hearing, the Commission shall
19    approve, or approve with modification, the plan no later
20    than November 1, 2018.
21        (8) As part of the development and update of the
22    long-term renewable resources procurement plan authorized
23    by subsection (c) of Section 1-75 of this Act, the Agency
24    shall plan for: (A) actions to refer customers from the
25    Illinois Solar for All Program to electric and natural gas
26    income-qualified energy efficiency programs, and vice

 

 

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1    versa, with the goal of increasing participation in both
2    of these programs; (B) effective procedures for data
3    sharing, as needed, to effectuate referrals between the
4    Illinois Solar for All Program and both electric and
5    natural gas income-qualified energy efficiency programs,
6    including sharing customer information directly with the
7    utilities, as needed and appropriate; and (C) efforts to
8    identify any existing deferred maintenance programs for
9    which prospective Solar for All Program customers may be
10    eligible and connect prospective customers for whom
11    deferred maintenance is or may be a barrier to solar
12    installation to those programs.
13    As used in this subsection (b), "low-income households"
14means persons and families whose income does not exceed 80% of
15area median income, adjusted for family size and revised every
165 years.
17    For the purposes of this subsection (b), the Agency shall
18define "environmental justice community" based on the
19methodologies and findings established by the Agency and the
20Administrator for the Illinois Solar for All Program in its
21initial long-term renewable resources procurement plan and as
22updated by the Agency and the Administrator for the Illinois
23Solar for All Program as part of the long-term renewable
24resources procurement plan update development, to ensure, to
25the extent practicable, compatibility with other agencies'
26definitions and may, for guidance, look to the definitions

 

 

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1used by federal, state, or local governments.
2    (b-5) After the receipt of all payments required by
3Section 16-115D of the Public Utilities Act, no additional
4funds shall be deposited into the Illinois Power Agency
5Renewable Energy Resources Fund unless directed by order of
6the Commission.
7    (b-10) After the receipt of all payments required by
8Section 16-115D of the Public Utilities Act and payment in
9full of all contracts executed by the Agency under subsections
10(b) and (i) of this Section, if the balance of the Illinois
11Power Agency Renewable Energy Resources Fund is under $5,000,
12then the Fund shall be inoperative and any remaining funds and
13any funds submitted to the Fund after that date, shall be
14transferred to the Supplemental Low-Income Energy Assistance
15Fund for use in the Low-Income Home Energy Assistance Program,
16as authorized by the Energy Assistance Act.
17    (c) (Blank).
18    (d) (Blank).
19    (e) All renewable energy credits procured using monies
20from the Illinois Power Agency Renewable Energy Resources Fund
21shall be permanently retired.
22    (f) The selection of one or more third-party program
23managers or administrators, the selection of the independent
24evaluator, and the procurement processes described in this
25Section are exempt from the requirements of the Illinois
26Procurement Code, under Section 20-10 of that Code.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Illinois Power Agency Renewable Energy Resources Fund. The
2    Agency shall enter into an interagency agreement with the
3    Commission to reimburse the Commission for its costs
4    associated with the procurement monitor for the
5    supplemental procurement process.
6(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)
 
7    (20 ILCS 3855/1-70)
8    Sec. 1-70. Agency officials.
9    (a) The Agency shall have a Director who meets the
10qualifications specified in Section 5-222 of the Civil
11Administrative Code of Illinois.
12    (b) Within the Illinois Power Agency, the Agency shall
13establish a Planning and Procurement Bureau and may establish
14a Resource Development Bureau. Each Bureau shall report to the
15Director.
16    (c) The Chief of the Planning and Procurement Bureau shall
17be appointed by the Director, at the Director's sole
18discretion, and (i) shall have at least 5 years of direct
19experience in electricity supply planning and procurement and
20(ii) shall also hold an advanced degree in risk management,
21law, business, or a related field.
22    (d) The Chief of the Resource Development Bureau may be
23appointed by the Director and (i) shall have at least 5 years
24of direct experience in electric generating project
25development and (ii) shall also hold an advanced degree in

 

 

10200HB3666sam001- 325 -LRB102 13525 AMC 28481 a

1economics, engineering, law, business, or a related field.
2    (e) For terms ending before December 31, 2019, the
3Director shall receive an annual salary of $100,000 or as set
4by the Executive Ethics Commission based on a review of
5comparable State agency director salaries, whichever is
6higher. No annual salary for the Director or a Bureau Chief
7shall exceed the amount of salary set by law for the Governor
8that is in effect on July 1 of that fiscal year. Compensation
9Review Board, whichever is higher. For terms ending before
10December 31, 2019, the Bureau Chiefs shall each receive an
11annual salary of $85,000 or as set by the Compensation Review
12Board, whichever is higher. For terms beginning after the
13effective date of this amendatory Act of the 100th General
14Assembly, the annual salaries for the Director and the Bureau
15Chiefs shall be an amount equal to 15% more than the respective
16position's annual salary as of December 31, 2018. The
17calculation of the 2018 salary base for this adjustment shall
18not include any cost of living adjustments, as authorized by
19Senate Joint Resolution 192 of the 86th General Assembly, for
20the period beginning July 1, 2009 to June 30, 2019. Beginning
21July 1, 2019 and each July 1 thereafter, the Director and the
22Bureau Chiefs shall receive an increase in salary based on a
23cost of living adjustment as authorized by Senate Joint
24Resolution 192 of the 86th General Assembly.
25    (f) The Director and Bureau Chiefs shall not, for 2 years
26prior to appointment or for 2 years after he or she leaves his

 

 

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1or her position, be employed by an electric utility,
2independent power producer, power marketer, or alternative
3retail electric supplier regulated by the Commission or the
4Federal Energy Regulatory Commission.
5    (g) The Director and Bureau Chiefs are prohibited from:
6(i) owning, directly or indirectly, 5% or more of the voting
7capital stock of an electric utility, independent power
8producer, power marketer, or alternative retail electric
9supplier; (ii) being in any chain of successive ownership of
105% or more of the voting capital stock of any electric utility,
11independent power producer, power marketer, or alternative
12retail electric supplier; (iii) receiving any form of
13compensation, fee, payment, or other consideration from an
14electric utility, independent power producer, power marketer,
15or alternative retail electric supplier, including legal fees,
16consulting fees, bonuses, or other sums. These limitations do
17not apply to any compensation received pursuant to a defined
18benefit plan or other form of deferred compensation, provided
19that the individual has otherwise severed all ties to the
20utility, power producer, power marketer, or alternative retail
21electric supplier. Through its long-term renewable resources
22procurement plan, the Agency shall consider additional program
23and contract requirements to ensure faithful compliance by
24applicants benefiting from preferences for projects designated
25to promote energy sovereignty.
26(Source: P.A. 99-536, eff. 7-8-16; 100-1179, eff. 1-18-19.)
 

 

 

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1    (20 ILCS 3855/1-75)
2    Sec. 1-75. Planning and Procurement Bureau. The Planning
3and Procurement Bureau has the following duties and
4responsibilities:
5    (a) The Planning and Procurement Bureau shall each year,
6beginning in 2008, develop procurement plans and conduct
7competitive procurement processes in accordance with the
8requirements of Section 16-111.5 of the Public Utilities Act
9for the eligible retail customers of electric utilities that
10on December 31, 2005 provided electric service to at least
11100,000 customers in Illinois. Beginning with the delivery
12year commencing on June 1, 2017, the Planning and Procurement
13Bureau shall develop plans and processes for the procurement
14of zero emission credits from zero emission facilities in
15accordance with the requirements of subsection (d-5) of this
16Section. Beginning on the effective date of this amendatory
17Act of the 102nd General Assembly, the Planning and
18Procurement Bureau shall develop plans and processes for the
19procurement of carbon mitigation credits from carbon-free
20energy resources in accordance with the requirements of
21subsection (d-10) of this Section. The Planning and
22Procurement Bureau shall also develop procurement plans and
23conduct competitive procurement processes in accordance with
24the requirements of Section 16-111.5 of the Public Utilities
25Act for the eligible retail customers of small

 

 

10200HB3666sam001- 328 -LRB102 13525 AMC 28481 a

1multi-jurisdictional electric utilities that (i) on December
231, 2005 served less than 100,000 customers in Illinois and
3(ii) request a procurement plan for their Illinois
4jurisdictional load. This Section shall not apply to a small
5multi-jurisdictional utility until such time as a small
6multi-jurisdictional utility requests the Agency to prepare a
7procurement plan for their Illinois jurisdictional load. For
8the purposes of this Section, the term "eligible retail
9customers" has the same definition as found in Section
1016-111.5(a) of the Public Utilities Act.
11    Beginning with the plan or plans to be implemented in the
122017 delivery year, the Agency shall no longer include the
13procurement of renewable energy resources in the annual
14procurement plans required by this subsection (a), except as
15provided in subsection (q) of Section 16-111.5 of the Public
16Utilities Act, and shall instead develop a long-term renewable
17resources procurement plan in accordance with subsection (c)
18of this Section and Section 16-111.5 of the Public Utilities
19Act.
20    In accordance with subsection (c-5) of this Section, the
21Planning and Procurement Bureau shall oversee the procurement
22by electric utilities that served more than 300,000 retail
23customers in this State as of January 1, 2019 of renewable
24energy credits from new utility-scale solar projects to be
25installed, along with energy storage facilities, at or
26adjacent to the sites of electric generating facilities that,

 

 

10200HB3666sam001- 329 -LRB102 13525 AMC 28481 a

1as of January 1, 2016, burned coal as their primary fuel
2source.
3        (1) The Agency shall each year, beginning in 2008, as
4    needed, issue a request for qualifications for experts or
5    expert consulting firms to develop the procurement plans
6    in accordance with Section 16-111.5 of the Public
7    Utilities Act. In order to qualify an expert or expert
8    consulting firm must have:
9            (A) direct previous experience assembling
10        large-scale power supply plans or portfolios for
11        end-use customers;
12            (B) an advanced degree in economics, mathematics,
13        engineering, risk management, or a related area of
14        study;
15            (C) 10 years of experience in the electricity
16        sector, including managing supply risk;
17            (D) expertise in wholesale electricity market
18        rules, including those established by the Federal
19        Energy Regulatory Commission and regional transmission
20        organizations;
21            (E) expertise in credit protocols and familiarity
22        with contract protocols;
23            (F) adequate resources to perform and fulfill the
24        required functions and responsibilities; and
25            (G) the absence of a conflict of interest and
26        inappropriate bias for or against potential bidders or

 

 

10200HB3666sam001- 330 -LRB102 13525 AMC 28481 a

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

 

 

10200HB3666sam001- 331 -LRB102 13525 AMC 28481 a

1    request for qualifications processes that are under
2    consideration to develop the procurement plans and to
3    serve as the procurement administrator. The Agency shall
4    also provide each qualified expert's or expert consulting
5    firm's response to the request for qualifications. All
6    information provided under this subparagraph shall also be
7    provided to the Commission. The Agency may provide by rule
8    for fees associated with supplying the information to
9    utilities and other interested parties. These parties
10    shall, within 5 business days, notify the Agency in
11    writing if they object to any experts or expert consulting
12    firms on the lists. Objections shall be based on:
13            (A) failure to satisfy qualification criteria;
14            (B) identification of a conflict of interest; or
15            (C) evidence of inappropriate bias for or against
16        potential bidders or the affected utilities.
17        The Agency shall remove experts or expert consulting
18    firms from the lists within 10 days if there is a
19    reasonable basis for an objection and provide the updated
20    lists to the affected utilities and other interested
21    parties. If the Agency fails to remove an expert or expert
22    consulting firm from a list, an objecting party may seek
23    review by the Commission within 5 days thereafter by
24    filing a petition, and the Commission shall render a
25    ruling on the petition within 10 days. There is no right of
26    appeal of the Commission's ruling.

 

 

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1        (4) The Agency shall issue requests for proposals to
2    the qualified experts or expert consulting firms to
3    develop a procurement plan for the affected utilities and
4    to serve as procurement administrator.
5        (5) The Agency shall select an expert or expert
6    consulting firm to develop procurement plans based on the
7    proposals submitted and shall award contracts of up to 5
8    years to those selected.
9        (6) The Agency shall select an expert or expert
10    consulting firm, with approval of the Commission, to serve
11    as procurement administrator based on the proposals
12    submitted. If the Commission rejects, within 5 days, the
13    Agency's selection, the Agency shall submit another
14    recommendation within 3 days based on the proposals
15    submitted. The Agency shall award a 5-year contract to the
16    expert or expert consulting firm so selected with
17    Commission approval.
18    (b) The experts or expert consulting firms retained by the
19Agency shall, as appropriate, prepare procurement plans, and
20conduct a competitive procurement process as prescribed in
21Section 16-111.5 of the Public Utilities Act, to ensure
22adequate, reliable, affordable, efficient, and environmentally
23sustainable electric service at the lowest total cost over
24time, taking into account any benefits of price stability, for
25eligible retail customers of electric utilities that on
26December 31, 2005 provided electric service to at least

 

 

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1100,000 customers in the State of Illinois, and for eligible
2Illinois retail customers of small multi-jurisdictional
3electric utilities that (i) on December 31, 2005 served less
4than 100,000 customers in Illinois and (ii) request a
5procurement plan for their Illinois jurisdictional load.
6    (c) Renewable portfolio standard.
7        (1)(A) The Agency shall develop a long-term renewable
8    resources procurement plan that shall include procurement
9    programs and competitive procurement events necessary to
10    meet the goals set forth in this subsection (c). The
11    initial long-term renewable resources procurement plan
12    shall be released for comment no later than 160 days after
13    June 1, 2017 (the effective date of Public Act 99-906).
14    The Agency shall review, and may revise on an expedited
15    basis, the long-term renewable resources procurement plan
16    at least every 2 years, which shall be conducted in
17    conjunction with the procurement plan under Section
18    16-111.5 of the Public Utilities Act to the extent
19    practicable to minimize administrative expense. No later
20    than 120 days after the effective date of this amendatory
21    Act of the 102nd General Assembly, the Agency shall
22    release for comment a revision to the long-term renewable
23    resources procurement plan, updating elements of the most
24    recently approved plan as needed to comply with this
25    amendatory Act of the 102nd General Assembly, and any
26    long-term renewable resources procurement plan update

 

 

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1    published by the Agency but not yet approved by the
2    Illinois Commerce Commission shall be withdrawn. The
3    long-term renewable resources procurement plans shall be
4    subject to review and approval by the Commission under
5    Section 16-111.5 of the Public Utilities Act.
6        (B) Subject to subparagraph (F) of this paragraph (1),
7    the long-term renewable resources procurement plan shall
8    attempt to meet include the goals for procurement of
9    renewable energy credits at levels of to meet at least the
10    following overall percentages: 13% by the 2017 delivery
11    year; increasing by at least 1.5% each delivery year
12    thereafter to at least 25% by the 2025 delivery year;
13    increasing by at least 3% each delivery year thereafter to
14    at least 40% by the 2030 delivery year, and continuing at
15    no less than 40% 25% for each delivery year thereafter.
16    The Agency shall attempt to procure 50% by delivery year
17    2040. The Agency shall determine the annual increase
18    between delivery year 2030 and delivery year 2040, if any,
19    taking into account energy demand, other energy resources,
20    and other public policy goals. In the event of a conflict
21    between these goals and the new wind and new photovoltaic
22    procurement requirements described in items (i) through
23    (iii) of subparagraph (C) of this paragraph (1), the
24    long-term plan shall prioritize compliance with the new
25    wind and new photovoltaic procurement requirements
26    described in items (i) through (iii) of subparagraph (C)

 

 

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1    of this paragraph (1) over the annual percentage targets
2    described in this subparagraph (B). The Agency shall not
3    comply with the annual percentage targets described in
4    this subparagraph (B) by procuring renewable energy
5    credits that are unlikely to lead to the development of
6    new renewable resources.
7        For the delivery year beginning June 1, 2017, the
8    procurement plan shall attempt to include, subject to the
9    prioritization outlined in this subparagraph (B),
10    cost-effective renewable energy resources equal to at
11    least 13% of each utility's load for eligible retail
12    customers and 13% of the applicable portion of each
13    utility's load for retail customers who are not eligible
14    retail customers, which applicable portion shall equal 50%
15    of the utility's load for retail customers who are not
16    eligible retail customers on February 28, 2017.
17        For the delivery year beginning June 1, 2018, the
18    procurement plan shall attempt to include, subject to the
19    prioritization outlined in this subparagraph (B),
20    cost-effective renewable energy resources equal to at
21    least 14.5% of each utility's load for eligible retail
22    customers and 14.5% of the applicable portion of each
23    utility's load for retail customers who are not eligible
24    retail customers, which applicable portion shall equal 75%
25    of the utility's load for retail customers who are not
26    eligible retail customers on February 28, 2017.

 

 

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1        For the delivery year beginning June 1, 2019, and for
2    each year thereafter, the procurement plans shall attempt
3    to include, subject to the prioritization outlined in this
4    subparagraph (B), cost-effective renewable energy
5    resources equal to a minimum percentage of each utility's
6    load for all retail customers as follows: 16% by June 1,
7    2019; increasing by 1.5% each year thereafter to 25% by
8    June 1, 2025; and 25% by June 1, 2026; increasing by at
9    least 3% each delivery year thereafter to at least 40% by
10    the 2030 delivery year, and continuing at no less than 40%
11    for each delivery year thereafter. The Agency shall
12    attempt to procure 50% by delivery year 2040. The Agency
13    shall determine the annual increase between delivery year
14    2030 and delivery year 2040, if any, taking into account
15    energy demand, other energy resources, and other public
16    policy goals.
17        For each delivery year, the Agency shall first
18    recognize each utility's obligations for that delivery
19    year under existing contracts. Any renewable energy
20    credits under existing contracts, including renewable
21    energy credits as part of renewable energy resources,
22    shall be used to meet the goals set forth in this
23    subsection (c) for the delivery year.
24        (C) Of the renewable energy credits procured under
25    this subsection (c), at least 75% shall come from wind and
26    photovoltaic projects. The long-term renewable resources

 

 

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1    procurement plan described in subparagraph (A) of this
2    paragraph (1) shall include the procurement of renewable
3    energy credits from new projects in amounts equal to at
4    least the following:
5            (i) 10,000,000 renewable energy credits delivered
6        annually by the end of the 2021 delivery year, and
7        increasing ratably to reach 45,000,000 renewable
8        energy credits delivered annually from new wind and
9        solar projects by the end of delivery year 2030 such
10        that the goals in subparagraph (B) of this paragraph
11        (1) are met entirely by procurements of renewable
12        energy credits from new wind and photovoltaic
13        projects. Of By the end of the 2020 delivery year: At
14        least 2,000,000 renewable energy credits for each
15        delivery year shall come from new wind projects; and
16        At least 2,000,000 renewable energy credits for each
17        delivery year shall come from new photovoltaic
18        projects; of that amount, to the extent possible, the
19        Agency shall procure 45% from wind projects and 55%
20        from photovoltaic projects. Of the amount to be
21        procured from photovoltaic projects, the Agency shall
22        procure: at least 50% from solar photovoltaic projects
23        using the program outlined in subparagraph (K) of this
24        paragraph (1) from distributed renewable energy
25        generation devices or community renewable generation
26        projects; at least 47% 40% from utility-scale solar

 

 

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1        projects; at least 3% 2% from brownfield site
2        photovoltaic projects that are not community renewable
3        generation projects; and the remainder shall be
4        determined through the long-term planning process
5        described in subparagraph (A) of this paragraph (1).
6            In developing the long-term renewable resources
7        procurement plan, the Agency shall consider other
8        approaches, in addition to competitive procurements,
9        that can be used to procure renewable energy credits
10        from brownfield site photovoltaic projects and thereby
11        help return blighted or contaminated land to
12        productive use while enhancing public health and the
13        well-being of Illinois residents, including those in
14        environmental justice communities, as defined using
15        existing methodologies and findings used by the Agency
16        and its Administrator in its Illinois Solar for All
17        Program.
18            (ii) In any given delivery year, if forecasted
19        expenses are less than the maximum budget available
20        under subparagraph (E) of this paragraph (1), the
21        Agency shall continue to procure new renewable energy
22        credits until that budget is exhausted in the manner
23        outlined in item (i) of this subparagraph (C). By the
24        end of the 2025 delivery year:
25                At least 3,000,000 renewable energy credits
26            for each delivery year shall come from new wind

 

 

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

 

 

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

 

 

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1        through at least delivery year 2030 shall be
2        considered new, however no renewable energy credits
3        from contracts entered into before June 1, 2021 shall
4        be used to calculate whether the Agency has procured
5        the correct proportion of new wind and new solar
6        contracts described in this subparagraph (C) for
7        delivery year 2021 and thereafter.
8        (D) Renewable energy credits shall be cost effective.
9    For purposes of this subsection (c), "cost effective"
10    means that the costs of procuring renewable energy
11    resources do not cause the limit stated in subparagraph
12    (E) of this paragraph (1) to be exceeded and, for
13    renewable energy credits procured through a competitive
14    procurement event, do not exceed benchmarks based on
15    market prices for like products in the region. For
16    purposes of this subsection (c), "like products" means
17    contracts for renewable energy credits from the same or
18    substantially similar technology, same or substantially
19    similar vintage (new or existing), the same or
20    substantially similar quantity, and the same or
21    substantially similar contract length and structure.
22    Benchmarks shall reflect development, financing, or
23    related costs resulting from requirements imposed through
24    other provisions of State law, including, but not limited
25    to, requirements in subparagraphs (P) and (Q) of this
26    paragraph (1) and the Renewable Energy Facilities

 

 

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1    Agricultural Impact Mitigation Act. Confidential
2    benchmarks Benchmarks shall be developed by the
3    procurement administrator, in consultation with the
4    Commission staff, Agency staff, and the procurement
5    monitor and shall be subject to Commission review and
6    approval. If price benchmarks for like products in the
7    region are not available, the procurement administrator
8    shall establish price benchmarks based on publicly
9    available data on regional technology costs and expected
10    current and future regional energy prices. The benchmarks
11    in this Section shall not be used to curtail or otherwise
12    reduce contractual obligations entered into by or through
13    the Agency prior to June 1, 2017 (the effective date of
14    Public Act 99-906).
15        (E) For purposes of this subsection (c), the required
16    procurement of cost-effective renewable energy resources
17    for a particular year commencing prior to June 1, 2017
18    shall be measured as a percentage of the actual amount of
19    electricity (megawatt-hours) supplied by the electric
20    utility to eligible retail customers in the delivery year
21    ending immediately prior to the procurement, and, for
22    delivery years commencing on and after June 1, 2017, the
23    required procurement of cost-effective renewable energy
24    resources for a particular year shall be measured as a
25    percentage of the actual amount of electricity
26    (megawatt-hours) delivered by the electric utility in the

 

 

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1    delivery year ending immediately prior to the procurement,
2    to all retail customers in its service territory. For
3    purposes of this subsection (c), the amount paid per
4    kilowatthour means the total amount paid for electric
5    service expressed on a per kilowatthour basis. For
6    purposes of this subsection (c), the total amount paid for
7    electric service includes without limitation amounts paid
8    for supply, transmission, capacity, distribution,
9    surcharges, and add-on taxes.
10        Notwithstanding the requirements of this subsection
11    (c), the total of renewable energy resources procured
12    under the procurement plan for any single year shall be
13    subject to the limitations of this subparagraph (E). Such
14    procurement shall be reduced for all retail customers
15    based on the amount necessary to limit the annual
16    estimated average net increase due to the costs of these
17    resources included in the amounts paid by eligible retail
18    customers in connection with electric service to no more
19    than 4.25% the greater of 2.015% of the amount paid per
20    kilowatthour by those customers during the year ending May
21    31, 2009 2007 or the incremental amount per kilowatthour
22    paid for these resources in 2011. To arrive at a maximum
23    dollar amount of renewable energy resources to be procured
24    for the particular delivery year, the resulting per
25    kilowatthour amount shall be applied to the actual amount
26    of kilowatthours of electricity delivered, or applicable

 

 

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1    portion of such amount as specified in paragraph (1) of
2    this subsection (c), as applicable, by the electric
3    utility in the delivery year immediately prior to the
4    procurement to all retail customers in its service
5    territory. The calculations required by this subparagraph
6    (E) shall be made only once for each delivery year at the
7    time that the renewable energy resources are procured.
8    Once the determination as to the amount of renewable
9    energy resources to procure is made based on the
10    calculations set forth in this subparagraph (E) and the
11    contracts procuring those amounts are executed, no
12    subsequent rate impact determinations shall be made and no
13    adjustments to those contract amounts shall be allowed.
14    All costs incurred under such contracts shall be fully
15    recoverable by the electric utility as provided in this
16    Section.
17        (F) If the limitation on the amount of renewable
18    energy resources procured in subparagraph (E) of this
19    paragraph (1) prevents the Agency from meeting all of the
20    goals in this subsection (c), the Agency's long-term plan
21    shall prioritize compliance with the requirements of this
22    subsection (c) regarding renewable energy credits in the
23    following order:
24            (i) renewable energy credits under existing
25        contractual obligations as of June 1, 2021;
26            (i-5) funding for the Illinois Solar for All

 

 

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1        Program, as described in subparagraph (O) of this
2        paragraph (1);
3            (ii) renewable energy credits necessary to comply
4        with the new wind and new photovoltaic procurement
5        requirements described in items (i) through (iii) of
6        subparagraph (C) of this paragraph (1); and
7            (iii) renewable energy credits necessary to meet
8        the remaining requirements of this subsection (c).
9        (G) The following provisions shall apply to the
10    Agency's procurement of renewable energy credits under
11    this subsection (c):
12            (i) Notwithstanding whether a long-term renewable
13        resources procurement plan has been approved, the
14        Agency shall conduct an initial forward procurement
15        for renewable energy credits from new utility-scale
16        wind projects within 160 days after June 1, 2017 (the
17        effective date of Public Act 99-906). For the purposes
18        of this initial forward procurement, the Agency shall
19        solicit 15-year contracts for delivery of 1,000,000
20        renewable energy credits delivered annually from new
21        utility-scale wind projects to begin delivery on June
22        1, 2019, if available, but not later than June 1, 2021,
23        unless the project has delays in the establishment of
24        an operating interconnection with the applicable
25        transmission or distribution system as a result of the
26        actions or inactions of the transmission or

 

 

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1        distribution provider, or other causes for force
2        majeure as outlined in the procurement contract, in
3        which case, not later than June 1, 2022. 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            (ii) Notwithstanding whether a long-term renewable
10        resources procurement plan has been approved, the
11        Agency shall conduct an initial forward procurement
12        for renewable energy credits from new utility-scale
13        solar projects and brownfield site photovoltaic
14        projects within one year after June 1, 2017 (the
15        effective date of Public Act 99-906). For the purposes
16        of this initial forward procurement, the Agency shall
17        solicit 15-year contracts for delivery of 1,000,000
18        renewable energy credits delivered annually from new
19        utility-scale solar projects and brownfield site
20        photovoltaic projects to begin delivery on June 1,
21        2019, if available, but not later than June 1, 2021,
22        unless the project has delays in the establishment of
23        an operating interconnection with the applicable
24        transmission or distribution system as a result of the
25        actions or inactions of the transmission or
26        distribution provider, or other causes for force

 

 

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1        majeure as outlined in the procurement contract, in
2        which case, not later than June 1, 2022. The Agency may
3        structure this initial procurement in one or more
4        discrete procurement events. Payments to suppliers of
5        renewable energy credits shall commence upon delivery.
6        Renewable energy credits procured under this initial
7        procurement shall be included in the Agency's
8        long-term plan and shall apply to all renewable energy
9        goals in this subsection (c).
10            (iii) Notwithstanding whether the Commission has
11        approved the periodic long-term renewable resources
12        procurement plan revision described in Section
13        16-111.5 of the Public Utilities Act, the Agency shall
14        conduct at least one subsequent forward procurement
15        for renewable energy credits from new utility-scale
16        wind projects, new utility-scale solar projects, and
17        new brownfield site photovoltaic projects within 240
18        days after the effective date of this amendatory Act
19        of the 102nd General Assembly in quantities necessary
20        to meet the requirements of subparagraph (C) of this
21        paragraph (1) through the delivery year beginning June
22        1, 2021. Subsequent forward procurements for
23        utility-scale wind projects shall solicit at least
24        1,000,000 renewable energy credits delivered annually
25        per procurement event and shall be planned, scheduled,
26        and designed such that the cumulative amount of

 

 

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1        renewable energy credits delivered from all new wind
2        projects in each delivery year shall not exceed the
3        Agency's projection of the cumulative amount of
4        renewable energy credits that will be delivered from
5        all new photovoltaic projects, including utility-scale
6        and distributed photovoltaic devices, in the same
7        delivery year at the time scheduled for wind contract
8        delivery.
9            (iv) 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        open capacity for each category in the Adjustable
14        Block program within 90 days after the effective date
15        of this amendatory Act of the 102nd General Assembly
16        manner:
17                (1) The Agency shall open the first block of
18            annual capacity for the category described in item
19            (i) of subparagraph (K) of this paragraph (1). The
20            first block of annual capacity for item (i) shall
21            be for at least 75 megawatts of total nameplate
22            capacity. The price of the renewable energy credit
23            for this block of capacity shall be 4% less than
24            the price of the last open block in this category.
25            Projects on a waitlist shall be awarded contracts
26            first in the order in which they appear on the

 

 

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1            waitlist. Notwithstanding anything to the
2            contrary, for those renewable energy credits that
3            qualify and are procured under this subitem (1) of
4            this item (iv), the renewable energy credit
5            delivery contract value shall be paid in full,
6            based on the estimated generation during the first
7            15 years of operation, by the contracting
8            utilities at the time that the facility producing
9            the renewable energy credits is interconnected at
10            the distribution system level of the utility and
11            verified as energized and in compliance by the
12            Program Administrator. The electric utility shall
13            receive and retire all renewable energy credits
14            generated by the project for the first 15 years of
15            operation. Renewable energy credits generated by
16            the project thereafter shall not be transferred
17            under the renewable energy credit delivery
18            contract with the counterparty electric utility.
19                (2) The Agency shall open the first block of
20            annual capacity for the category described in item
21            (ii) of subparagraph (K) of this paragraph (1).
22            The first block of annual capacity for item (ii)
23            shall be for at least 75 megawatts of total
24            nameplate capacity.
25                    (A) The price of the renewable energy
26                credit for any project on a waitlist for this

 

 

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1                category before the opening of this block
2                shall be 4% less than the price of the last
3                open block in this category. Projects on the
4                waitlist shall be awarded contracts first in
5                the order in which they appear on the
6                waitlist. Any projects that are less than or
7                equal to 25 kilowatts in size on the waitlist
8                for this capacity shall be moved to the
9                waitlist for paragraph (1) of this item (iv).
10                Notwithstanding anything to the contrary,
11                projects that were on the waitlist prior to
12                opening of this block shall not be required to
13                be in compliance with the requirements of
14                subparagraph (Q) of this paragraph (1) of this
15                subsection (c). Notwithstanding anything to
16                the contrary, for those renewable energy
17                credits procured from projects that were on
18                the waitlist for this category before the
19                opening of this block 20% of the renewable
20                energy credit delivery contract value, based
21                on the estimated generation during the first
22                15 years of operation, shall be paid by the
23                contracting utilities at the time that the
24                facility producing the renewable energy
25                credits is interconnected at the distribution
26                system level of the utility and verified as

 

 

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1                energized by the Program Administrator. The
2                remaining portion shall be paid ratably over
3                the subsequent 4-year period. The electric
4                utility shall receive and retire all renewable
5                energy credits generated by the project during
6                the first 15 years of operation. Renewable
7                energy credits generated by the project
8                thereafter shall not be transferred under the
9                renewable energy credit delivery contract with
10                the counterparty electric utility.
11                    (B) The price of renewable energy credits
12                for any project not on the waitlist for this
13                category before the opening of the block shall
14                be determined and published by the Agency.
15                Projects not on a waitlist as of the opening
16                of this block shall be subject to the
17                requirements of subparagraph (Q) of this
18                paragraph (1), as applicable. Projects not on
19                a waitlist as of the opening of this block
20                shall be subject to the contract provisions
21                outlined in item (iii) of subparagraph (L) of
22                this paragraph (1). The Agency shall strive to
23                publish updated prices and an updated
24                renewable energy credit delivery contract as
25                quickly as possible.
26                (3) For opening the first 2 blocks of annual

 

 

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1            capacity for projects participating in item (iii)
2            of subparagraph (K) of paragraph (1) of subsection
3            (c), projects shall be selected exclusively from
4            those projects on the ordinal waitlists of
5            community renewable generation projects
6            established by the Agency based on the status of
7            those ordinal waitlists as of December 31, 2020,
8            and only those projects previously determined to
9            be eligible for the Agency's April 2019 community
10            solar project selection process.
11                The first 2 blocks of annual capacity for item
12            (iii) shall be for 250 megawatts of total
13            nameplate capacity, with both blocks opening
14            simultaneously under the schedule outlined in the
15            paragraphs below. Projects shall be selected as
16            follows:
17                    (A) The geographic balance of selected
18                projects shall follow the Group classification
19                found in the Agency's Revised Long-Term
20                Renewable Resources Procurement Plan, with 70%
21                of capacity allocated to projects on the Group
22                B waitlist and 30% of capacity allocated to
23                projects on the Group A waitlist.
24                    (B) Contract awards for waitlisted
25                projects shall be allocated proportionate to
26                the total nameplate capacity amount across

 

 

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1                both ordinal waitlists associated with that
2                applicant firm or its affiliates, subject to
3                the following conditions.
4                        (i) Each applicant firm having a
5                    waitlisted project eligible for selection
6                    shall receive no less than 500 kilowatts
7                    in awarded capacity across all groups, and
8                    no approved vendor may receive more than
9                    20% of each Group's waitlist allocation.
10                        (ii) Each applicant firm, upon
11                    receiving an award of program capacity
12                    proportionate to its waitlisted capacity,
13                    may then determine which waitlisted
14                    projects it chooses to be selected for a
15                    contract award up to that capacity amount.
16                        (iii) Assuming all other program
17                    requirements are met, applicant firms may
18                    adjust the nameplate capacity of applicant
19                    projects without losing waitlist
20                    eligibility, so long as no project is
21                    greater than 2,000 kilowatts in size.
22                        (iv) Assuming all other program
23                    requirements are met, applicant firms may
24                    adjust the expected production associated
25                    with applicant projects, subject to
26                    verification by the Program Administrator.

 

 

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1                    (C) After a review of affiliate
2                information and the current ordinal waitlists,
3                the Agency shall announce the nameplate
4                capacity award amounts associated with
5                applicant firms no later than 90 days after
6                the effective date of this amendatory Act of
7                the 102nd General Assembly.
8                    (D) Applicant firms shall submit their
9                portfolio of projects used to satisfy those
10                contract awards no less than 90 days after the
11                Agency's announcement. The total nameplate
12                capacity of all projects used to satisfy that
13                portfolio shall be no greater than the
14                Agency's nameplate capacity award amount
15                associated with that applicant firm. An
16                applicant firm may decline, in whole or in
17                part, its nameplate capacity award without
18                penalty, with such unmet capacity rolled over
19                to the next block opening for project
20                selection under item (iii) of subparagraph (K)
21                of this subsection (c). Any projects not
22                included in an applicant firm's portfolio may
23                reapply without prejudice upon the next block
24                reopening for project selection under item
25                (iii) of subparagraph (K) of this subsection
26                (c).

 

 

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1                    (E) The renewable energy credit delivery
2                contract shall be subject to the contract and
3                payment terms outlined in item (iv) of
4                subparagraph (L) of this subsection (c).
5                Contract instruments used for this
6                subparagraph shall contain the following
7                terms:
8                        (i) Renewable energy credit prices
9                    shall be fixed, without further adjustment
10                    under any other provision of this Act or
11                    for any other reason, at 10% lower than
12                    prices applicable to the last open block
13                    for this category, inclusive of any adders
14                    available for achieving a minimum of 50%
15                    of subscribers to the project's nameplate
16                    capacity being residential or small
17                    commercial customers with subscriptions of
18                    below 25 kilowatts in size;
19                        (ii) A requirement that a minimum of
20                    50% of subscribers to the project's
21                    nameplate capacity be residential or small
22                    commercial customers with subscriptions of
23                    below 25 kilowatts in size;
24                        (iii) Permission for the ability of a
25                    contract holder to substitute projects
26                    with other waitlisted projects without

 

 

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1                    penalty should a project receive a
2                    non-binding estimate of costs to construct
3                    the interconnection facilities and any
4                    required distribution upgrades associated
5                    with that project of greater than 30 cents
6                    per watt AC of that project's nameplate
7                    capacity. In developing the applicable
8                    contract instrument, the Agency may
9                    consider whether other circumstances
10                    outside of the control of the applicant
11                    firm should also warrant project
12                    substitution rights.
13                    The Agency shall publish a finalized
14                updated renewable energy credit delivery
15                contract developed consistent with these terms
16                and conditions no less than 30 days before
17                applicant firms must submit their portfolio of
18                projects pursuant to item (D).
19                    (F) To be eligible for an award, the
20                applicant firm shall certify that not less
21                than prevailing wage, as determined pursuant
22                to the Illinois Prevailing Wage Act, was or
23                will be paid to employees who are engaged in
24                construction activities associated with a
25                selected project.
26                (4) The Agency shall open the first block of

 

 

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1            annual capacity for the category described in item
2            (iv) of subparagraph (K) of this paragraph (1).
3            The first block of annual capacity for item (iv)
4            shall be for at least 50 megawatts of total
5            nameplate capacity. Renewable energy credit prices
6            shall be fixed, without further adjustment under
7            any other provision of this Act or for any other
8            reason, at the price in the last open block in the
9            category described in item (ii) of subparagraph
10            (K) of this paragraph (1). Pricing for future
11            blocks of annual capacity for this category may be
12            adjusted in the Agency's second revision to its
13            Long-Term Renewable Resources Procurement Plan.
14            Projects in this category shall be subject to the
15            contract terms outlined in item (iv) of
16            subparagraph (L) of this paragraph (1).
17                (5) The Agency shall open the equivalent of 2
18            years of annual capacity for the category
19            described in item (v) of subparagraph (K) of this
20            paragraph (1). The first block of annual capacity
21            for item (v) shall be for at least 10 megawatts of
22            total nameplate capacity. Notwithstanding the
23            provisions of item (v) of subparagraph (K) of this
24            paragraph (1), for the purpose of this initial
25            block, the agency shall accept new project
26            applications intended to increase the diversity of

 

 

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1            areas hosting community solar projects, the
2            business models of projects, and the size of
3            projects, as described by the Agency in its
4            long-term renewable resources procurement plan
5            that is approved as of the effective date of this
6            amendatory Act of the 102nd General Assembly.
7            Projects in this category shall be subject to the
8            contract terms outlined in item (iii) of
9            subsection (L) of this paragraph (1).
10                (6) The Agency shall open the first blocks of
11            annual capacity for the category described in item
12            (vi) of subparagraph (K) of this paragraph (1),
13            with allocations of capacity within the block
14            generally matching the historical share of block
15            capacity allocated between the category described
16            in items (i) and (ii) of subparagraph (K) of this
17            paragraph (1). The first two blocks of annual
18            capacity for item (vi) shall be for at least 75
19            megawatts of total nameplate capacity. The price
20            of renewable energy credits for the blocks of
21            capacity shall be 4% less than the price of the
22            last open blocks in the categories described in
23            items (i) and (ii) of subparagraph (K) of this
24            paragraph (1). Pricing for future blocks of annual
25            capacity for this category may be adjusted in the
26            Agency's second revision to its Long-Term

 

 

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

 

 

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1            from exceeding the projected cumulative amount of
2            renewable energy credits to be delivered from all
3            new wind projects in each delivery year and
4            provided further that nothing in this item (iv)
5            shall require the curtailment of an executed
6            contract. The Agency shall update, on a quarterly
7            basis, its projection of the renewable energy
8            credits to be delivered from all projects in each
9            delivery year. Notwithstanding anything to the
10            contrary, the Agency may adjust the timing of
11            procurement events conducted under this
12            subparagraph (G). The long-term renewable
13            resources procurement plan shall set forth the
14            process by which the adjustments may be made.
15            (v) Upon the effective date of this amendatory Act
16        of the 102nd General Assembly, for all competitive
17        procurements and any procurements of renewable energy
18        credit from new utility-scale wind and new
19        utility-scale photovoltaic projects, the Agency shall
20        procure indexed renewable energy credits and direct
21        respondents to offer a strike price.
22                (1) The purchase price of the indexed
23            renewable energy credit payment shall be
24            calculated for each settlement period. That
25            payment, for any settlement period, shall be equal
26            to the difference resulting from subtracting the

 

 

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1            strike price from the index price for that
2            settlement period. If this difference results in a
3            negative number, the indexed REC counterparty
4            shall owe the seller the absolute value multiplied
5            by the quantity of energy produced in the relevant
6            settlement period. If this difference results in a
7            positive number, the seller shall owe the indexed
8            REC counterparty this amount multiplied by the
9            quantity of energy produced in the relevant
10            settlement period.
11                (2) Parties shall cash settle every month,
12            summing up all settlements (both positive and
13            negative, if applicable) for the prior month.
14                (3) To ensure funding in the annual budget
15            established under subparagraph (E) for indexed
16            renewable energy credit procurements for each year
17            of the term of such contracts, which must have a
18            minimum tenure of 20 calendar years, the
19            procurement administrator, Agency, Commission
20            staff, and procurement monitor shall quantify the
21            annual cost of the contract by utilizing an
22            industry-standard, third-party forward price curve
23            for energy at the appropriate hub or load zone,
24            including the estimated magnitude and timing of
25            the price effects related to federal carbon
26            controls. Each forward price curve shall contain a

 

 

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1            specific value of the forecasted market price of
2            electricity for each annual delivery year of the
3            contract. For procurement planning purposes, the
4            impact on the annual budget for the cost of
5            indexed renewable energy credits for each delivery
6            year shall be determined as the expected annual
7            contract expenditure for that year, equaling the
8            difference between (i) the sum across all relevant
9            contracts of the applicable strike price
10            multiplied by contract quantity and (ii) the sum
11            across all relevant contracts of the forward price
12            curve for the applicable load zone for that year
13            multiplied by contract quantity. The contracting
14            utility shall not assume an obligation in excess
15            of the estimated annual cost of the contracts for
16            indexed renewable energy credits. Forward curves
17            shall be revised on an annual basis as updated
18            forward price curves are released and filed with
19            the Commission in the proceeding approving the
20            Agency's most recent long-term renewable resources
21            procurement plan. If the expected contract spend
22            is higher or lower than the total quantity of
23            contracts multiplied by the forward price curve
24            value for that year, the forward price curve shall
25            be updated by the procurement administrator, in
26            consultation with the Agency, Commission staff,

 

 

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1            and procurement monitors, using then-currently
2            available price forecast data and additional
3            budget dollars shall be obligated or reobligated
4            as appropriate.
5                (4) To ensure that indexed renewable energy
6            credit prices remain predictable and affordable,
7            the Agency may consider the institution of a price
8            collar on REC prices paid under indexed renewable
9            energy credit procurements establishing floor and
10            ceiling REC prices applicable to indexed REC
11            contract prices. Any price collars applicable to
12            indexed REC procurements shall be proposed by the
13            Agency through its long-term renewable resources
14            procurement plan.
15            (vi) (v) All procurements under this subparagraph
16        (G) shall comply with the geographic requirements in
17        subparagraph (I) of this paragraph (1) and shall
18        follow the procurement processes and procedures
19        described in this Section and Section 16-111.5 of the
20        Public Utilities Act to the extent practicable, and
21        these processes and procedures may be expedited to
22        accommodate the schedule established by this
23        subparagraph (G).
24        (H) The procurement of renewable energy resources for
25    a given delivery year shall be reduced as described in
26    this subparagraph (H) if an alternative retail electric

 

 

10200HB3666sam001- 364 -LRB102 13525 AMC 28481 a

1    supplier meets the requirements described in this
2    subparagraph (H).
3            (i) Within 45 days after June 1, 2017 (the
4        effective date of Public Act 99-906), an alternative
5        retail electric supplier or its successor shall submit
6        an informational filing to the Illinois Commerce
7        Commission certifying that, as of December 31, 2015,
8        the alternative retail electric supplier owned one or
9        more electric generating facilities that generates
10        renewable energy resources as defined in Section 1-10
11        of this Act, provided that such facilities are not
12        powered by wind or photovoltaics, and the facilities
13        generate one renewable energy credit for each
14        megawatthour of energy produced from the facility.
15            The informational filing shall identify each
16        facility that was eligible to satisfy the alternative
17        retail electric supplier's obligations under Section
18        16-115D of the Public Utilities Act as described in
19        this item (i).
20            (ii) For a given delivery year, the alternative
21        retail electric supplier may elect to supply its
22        retail customers with renewable energy credits from
23        the facility or facilities described in item (i) of
24        this subparagraph (H) that continue to be owned by the
25        alternative retail electric supplier.
26            (iii) The alternative retail electric supplier

 

 

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1        shall notify the Agency and the applicable utility, no
2        later than February 28 of the year preceding the
3        applicable delivery year or 15 days after June 1, 2017
4        (the effective date of Public Act 99-906), whichever
5        is later, of its election under item (ii) of this
6        subparagraph (H) to supply renewable energy credits to
7        retail customers of the utility. Such election shall
8        identify the amount of renewable energy credits to be
9        supplied by the alternative retail electric supplier
10        to the utility's retail customers and the source of
11        the renewable energy credits identified in the
12        informational filing as described in item (i) of this
13        subparagraph (H), subject to the following
14        limitations:
15                For the delivery year beginning June 1, 2018,
16            the maximum amount of renewable energy credits to
17            be supplied by an alternative retail electric
18            supplier under this subparagraph (H) shall be 68%
19            multiplied by 25% multiplied by 14.5% multiplied
20            by the amount of metered electricity
21            (megawatt-hours) delivered by the alternative
22            retail electric supplier to Illinois retail
23            customers during the delivery year ending May 31,
24            2016.
25                For delivery years beginning June 1, 2019 and
26            each year thereafter, the maximum amount of

 

 

10200HB3666sam001- 366 -LRB102 13525 AMC 28481 a

1            renewable energy credits to be supplied by an
2            alternative retail electric supplier under this
3            subparagraph (H) shall be 68% multiplied by 50%
4            multiplied by 16% multiplied by the amount of
5            metered electricity (megawatt-hours) delivered by
6            the alternative retail electric supplier to
7            Illinois retail customers during the delivery year
8            ending May 31, 2016, provided that the 16% value
9            shall increase by 1.5% each delivery year
10            thereafter to 25% by the delivery year beginning
11            June 1, 2025, and thereafter the 25% value shall
12            apply to each delivery year.
13            For each delivery year, the total amount of
14        renewable energy credits supplied by all alternative
15        retail electric suppliers under this subparagraph (H)
16        shall not exceed 9% of the Illinois target renewable
17        energy credit quantity. The Illinois target renewable
18        energy credit quantity for the delivery year beginning
19        June 1, 2018 is 14.5% multiplied by the total amount of
20        metered electricity (megawatt-hours) delivered in the
21        delivery year immediately preceding that delivery
22        year, provided that the 14.5% shall increase by 1.5%
23        each delivery year thereafter to 25% by the delivery
24        year beginning June 1, 2025, and thereafter the 25%
25        value shall apply to each delivery year.
26            If the requirements set forth in items (i) through

 

 

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

 

 

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1    nitrogen oxide, particulate matter and other pollution
2    that adversely affects public health in this State,
3    increasing fuel and resource diversity in this State,
4    enhancing the reliability and resiliency of the
5    electricity distribution system in this State, meeting
6    goals to limit carbon dioxide emissions under federal or
7    State law, and contributing to a cleaner and healthier
8    environment for the citizens of this State. In order to
9    further these legislative purposes, renewable energy
10    credits shall be eligible to be counted toward the
11    renewable energy requirements of this subsection (c) if
12    they are generated from facilities located in this State.
13    The Agency may qualify renewable energy credits from
14    facilities located in states adjacent to Illinois or
15    renewable energy credits associated with the electricity
16    generated by a utility-scale wind energy facility or
17    utility-scale photovoltaic facility and transmitted by a
18    qualifying direct current project described in subsection
19    (b-5) of Section 8-406 of the Public Utilities Act to a
20    delivery point on the electric transmission grid located
21    in this State or a state adjacent to Illinois, if the
22    generator demonstrates and the Agency determines that the
23    operation of such facility or facilities will help promote
24    the State's interest in the health, safety, and welfare of
25    its residents based on the public interest criteria
26    described above. For the purposes of this Section,

 

 

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1    renewable resources that are delivered via a high voltage
2    direct current converter station located in Illinois shall
3    be deemed generated in Illinois at the time and location
4    the energy is converted to alternating current by the high
5    voltage direct current converter station if the high
6    voltage direct current transmission line: (i) was
7    constructed with a project labor agreement; (ii) is
8    capable of transmitting electricity at 525kv; (iii) has an
9    Illinois converter station located and interconnected in
10    the region of the PJM Interconnection, LLC; (iv) does not
11    operate as a public utility; and (v) if the high voltage
12    direct current transmission line was energized after June
13    1, 2023. To ensure that the public interest criteria are
14    applied to the procurement and given full effect, the
15    Agency's long-term procurement plan shall describe in
16    detail how each public interest factor shall be considered
17    and weighted for facilities located in states adjacent to
18    Illinois.
19        (J) In order to promote the competitive development of
20    renewable energy resources in furtherance of the State's
21    interest in the health, safety, and welfare of its
22    residents, renewable energy credits shall not be eligible
23    to be counted toward the renewable energy requirements of
24    this subsection (c) if they are sourced from a generating
25    unit whose costs were being recovered through rates
26    regulated by this State or any other state or states on or

 

 

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1    after January 1, 2017. Each contract executed to purchase
2    renewable energy credits under this subsection (c) shall
3    provide for the contract's termination if the costs of the
4    generating unit supplying the renewable energy credits
5    subsequently begin to be recovered through rates regulated
6    by this State or any other state or states; and each
7    contract shall further provide that, in that event, the
8    supplier of the credits must return 110% of all payments
9    received under the contract. Amounts returned under the
10    requirements of this subparagraph (J) shall be retained by
11    the utility and all of these amounts shall be used for the
12    procurement of additional renewable energy credits from
13    new wind or new photovoltaic resources as defined in this
14    subsection (c). The long-term plan shall provide that
15    these renewable energy credits shall be procured in the
16    next procurement event.
17        Notwithstanding the limitations of this subparagraph
18    (J), renewable energy credits sourced from generating
19    units that are constructed, purchased, owned, or leased by
20    an electric utility as part of an approved project,
21    program, or pilot under Section 1-56 of this Act shall be
22    eligible to be counted toward the renewable energy
23    requirements of this subsection (c), regardless of how the
24    costs of these units are recovered. As long as a
25    generating unit or an identifiable portion of a generating
26    unit has not had and does not have its costs recovered

 

 

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1    through rates regulated by this State or any other state,
2    HVDC renewable energy credits associated with that
3    generating unit or identifiable portion thereof shall be
4    eligible to be counted toward the renewable energy
5    requirements of this subsection (c).
6        (K) The long-term renewable resources procurement plan
7    developed by the Agency in accordance with subparagraph
8    (A) of this paragraph (1) shall include an Adjustable
9    Block program for the procurement of renewable energy
10    credits from new photovoltaic projects that are
11    distributed renewable energy generation devices or new
12    photovoltaic community renewable generation projects. The
13    Adjustable Block program shall be generally designed to
14    provide for the steady, predictable, and sustainable
15    growth of new solar photovoltaic development in Illinois.
16    To this end, the Adjustable Block program shall provide a
17    transparent annual schedule of prices and quantities to
18    enable the photovoltaic market to scale up and for
19    renewable energy credit prices to adjust at a predictable
20    rate over time. The prices set by the Adjustable Block
21    program can be reflected as a set value or as the product
22    of a formula.
23        The Adjustable Block program shall include for each
24    category of eligible projects for each delivery year: a
25    single block of nameplate capacity, a price for renewable
26    energy credits within that block, and the terms and

 

 

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1    conditions for securing a spot on a waitlist once the
2    block is : a schedule of standard block purchase prices to
3    be offered; a series of steps, with associated nameplate
4    capacity and purchase prices that adjust from step to
5    step; and automatic opening of the next step as soon as the
6    nameplate capacity and available purchase prices for an
7    open step are fully committed or reserved. Except as
8    outlined below, the waitlist of projects in a given year
9    will carry over to apply to the subsequent year when
10    another block is opened. Only projects energized on or
11    after June 1, 2017 shall be eligible for the Adjustable
12    Block program. For each category for each delivery year
13    block group the Agency shall determine the number of
14    blocks, the amount of generation capacity in each block,
15    and the purchase price for each block, provided that the
16    purchase price provided and the total amount of generation
17    in all blocks for all categories block groups shall be
18    sufficient to meet the goals in this subsection (c). The
19    Agency shall strive to issue a single block sized to
20    provide for stability and market growth. The Agency shall
21    establish program eligibility requirements that ensure
22    that projects that enter the program are sufficiently
23    mature to indicate a demonstrable path to completion. The
24    Agency may periodically review its prior decisions
25    establishing the number of blocks, the amount of
26    generation capacity in each block, and the purchase price

 

 

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

 

 

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1        customers.
2            (iii) At least 30% 25% from photovoltaic community
3        renewable generation projects. Capacity for this
4        category for the first 2 delivery years after the
5        effective date of this amendatory Act of the 102nd
6        General Assembly shall be allocated to waitlist
7        projects as provided in paragraph (3) of item (iv) of
8        subparagraph (G). Starting in the third delivery year
9        after the effective date of this amendatory Act of the
10        102nd General Assembly or earlier if the Agency
11        determines there is additional capacity needed for to
12        meet previous delivery year requirements, the
13        following shall apply:
14                (1) the Agency shall select projects on a
15            first-come, first-serve basis, however the Agency
16            may suggest additional methods to prioritize
17            projects that are submitted at the same time;
18                (2) projects shall have subscriptions of 25 kW
19            or less for at least 50% of the facility's
20            nameplate capacity and the Agency shall price the
21            renewable energy credits with that as a factor;
22                (3) projects shall not be colocated with one
23            or more other community renewable generation
24            projects, as defined in the Agency's first revised
25            long-term renewable resources procurement plan
26            approved by the Commission on February 18, 2020,

 

 

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1            such that the aggregate nameplate capacity exceeds
2            5,000 kilowatts; and
3                (4) projects greater than 2 MW may not apply
4            until after the approval of the Agency's revised
5            Long-Term Renewable Resources Procurement Plan
6            after the effective date of this amendatory Act of
7            the 102nd General Assembly.
8            (iv) At least 15% from distributed renewable
9        generation devices or photovoltaic community renewable
10        generation projects installed at public schools. The
11        Agency may create subcategories within this category
12        to account for the differences between project size or
13        location. Projects located within environmental
14        justice communities or within Organizational Units
15        that fall within Tier 1 or Tier 2 shall be given
16        priority. Each of the Agency's periodic updates to its
17        long-term renewable resources procurement plan to
18        incorporate the procurement described in this
19        subparagraph (iv) shall also include the proposed
20        quantities or blocks, pricing, and contract terms
21        applicable to the procurement as indicated herein. In
22        each such update and procurement, the Agency shall set
23        the renewable energy credit price and establish
24        payment terms for the renewable energy credits
25        procured pursuant to this subparagraph (iv) that make
26        it feasible and affordable for public schools to

 

 

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1        install photovoltaic distributed renewable energy
2        devices on their premises, including, but not limited
3        to, those public schools subject to the prioritization
4        provisions of this subparagraph. For the purposes of
5        this item (iv):
6            "Environmental Justice Community" shall have the
7        same meaning set forth in the Agency's long-term
8        renewable resources procurement plan;
9            "Organization Unit", "Tier 1" and "Tier 2" shall
10        have the meanings set for in Section 18-8.15 of the
11        School Code;
12            "Public schools" shall have the meaning set forth
13        in Section 1-3 of the School Code.
14            (v) At least 5% from community-driven community
15        solar projects intended to provide more direct and
16        tangible connection and benefits to the communities
17        which they serve or in which they operate and,
18        additionally, to increase the variety of community
19        solar locations, models, and options in Illinois. As
20        part of its long-term renewable resources procurement
21        plan, the Agency shall develop selection criteria for
22        projects participating in this category. Nothing in
23        this Section shall preclude the Agency from creating a
24        selection process that maximizes community ownership
25        and community benefits in selecting projects to
26        receive renewable energy credits. Selection criteria

 

 

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1        shall include:
2                (1) community ownership or community
3            wealth-building;
4                (2) additional direct and indirect community
5            benefit, beyond project participation as a
6            subscriber, including, but not limited to,
7            economic, environmental, social, cultural, and
8            physical benefits;
9                (3) meaningful involvement in project
10            organization and development by community members
11            or nonprofit organizations or public entities
12            located in or serving the community;
13                (4) engagement in project operations and
14            management by nonprofit organizations, public
15            entities, or community members; and
16                (5) whether a project is developed in response
17            to a site-specific RFP developed by community
18            members or a nonprofit organization or public
19            entity located in or serving the community.
20            Selection criteria may also prioritize projects
21        that:
22                (1) are developed in collaboration with or to
23            provide complementary opportunities for the Clean
24            Jobs Workforce Network Program, the Illinois
25            Climate Works Preapprenticeship Program, the
26            Returning Residents Clean Jobs Training Program,

 

 

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1            the Clean Energy Contractor Incubator Program, or
2            the Clean Energy Primes Contractor Accelerator
3            Program;
4                (2) increase the diversity of locations of
5            community solar projects in Illinois, including by
6            locating in urban areas and population centers;
7                (3) are located in Equity Investment Eligible
8            Communities;
9                (4) are not greenfield projects;
10                (5) serve only local subscribers;
11                (6) have a nameplate capacity that does not
12            exceed 500 kW;
13                (7) are managed by an Energy Equity-Certified
14            Contractor, as defined in the Energy Equity
15            Eligible Contractor Registration Act, whose
16            initial certification is not more than 3 years old -
17             Energy Equity-Certified Contractors working
18            under a waiver or corrective action plan would not
19            be considered; or
20                (8) otherwise meaningfully advance the goals
21            of providing more direct and tangible connection
22            and benefits to the communities which they serve
23            or in which they operate and increasing the
24            variety of community solar locations, models, and
25            options in Illinois.
26            For the purposes of this item (v):

 

 

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1            "Community" means a social unit in which people
2        come together regularly to effect change; a social
3        unit in which participants are marked by a cooperative
4        spirit, a common purpose, or shared interests or
5        characteristics; or a space understood by its
6        residents to be delineated through geographic
7        boundaries or landmarks.
8            "Community benefit" means a range of services and
9        activities that provide affirmative, economic,
10        environmental, social, cultural, or physical value to
11        a community; or a mechanism that enables economic
12        development, high-quality employment, and education
13        opportunities for local workers and residents, or
14        formal monitoring and oversight structures such that
15        community members may ensure that those services and
16        activities respond to local knowledge and needs.
17            "Community ownership" means an arrangement in
18        which an electric generating facility is, or over time
19        will be, in significant part, owned collectively by
20        members of the community to which an electric
21        generating facility provides benefits; members of that
22        community participate in decisions regarding the
23        governance, operation, maintenance, and upgrades of
24        and to that facility; and members of that community
25        benefit from regular use of that facility.
26            Terms and guidance within these criteria that are

 

 

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1        not defined in this item (v) shall be defined by the
2        Agency, with stakeholder input, during the development
3        of the Agency's long-term renewable resources
4        procurement plan. The Agency shall develop regular
5        opportunities for projects to submit applications for
6        projects under this category, and develop selection
7        criteria that gives preference to projects that better
8        meet individual criteria as well as projects that
9        address a higher number of criteria.
10            (vi) At least 10% from distributed renewable
11        energy generation devices or photovoltaic community
12        renewable generation projects from applicants that are
13        equity eligible contractors. The Agency may create
14        subcategories within this category to account for the
15        differences between project size and type. The Agency
16        shall propose to increase this item over time to 40%
17        based on factors such as, but not limited to, the
18        number of equity eligible contractors and capacity
19        used in this item in previous delivery years.
20            The Agency shall propose a payment structure for
21        contracts executed pursuant to this paragraph under
22        which, upon a demonstration of qualification or need,
23        applicant firms are advanced capital disbursed after
24        contract execution but before the contracted project's
25        energization. The amount or percentage of capital
26        advanced prior to project energization shall be

 

 

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1        sufficient to both cover any increase in development
2        costs resulting from prevailing wage requirements or
3        project-labor agreements, and designed to overcome
4        barriers in access to capital faced by Equity Eligible
5        Contractors. The amount or percentage of advanced
6        capital may vary by subcategory within this category
7        and by an applicant's demonstration of need, with such
8        levels to be established through the Long-Term
9        Renewable Resources Procurement Plan authorized under
10        subparagraph (A) of paragraph (1) of subsection (c) of
11        this Section.
12            Contracts developed featuring capital advanced
13        prior to a project's energization shall feature
14        provisions to ensure both the successful development
15        of applicant projects and the delivery of the
16        renewable energy credits for the full term of the
17        contract, including ongoing collateral requirements
18        and other provisions deemed necessary by the Agency,
19        and may include energization timelines longer than for
20        comparable project types. The percentage or amount of
21        capital advanced prior to project energization shall
22        not operate to increase the overall contract value,
23        however contracts executed under this subparagraph may
24        feature renewable energy credit prices higher than
25        those offered to similar projects participating in
26        other categories. Capital advanced prior to

 

 

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1        energization shall serve to reduce the ratable
2        payments made after energization under items (ii) and
3        (iii) of subparagraph (L) or payments made for each
4        renewable energy credit delivery under item (iv) of
5        subparagraph (L).
6            (vii) (iv) The remaining capacity 25% shall be
7        allocated as specified by the Agency in order to
8        respond to market demand the long-term renewable
9        resources procurement plan. The Agency shall allocate
10        any discretionary capacity prior to the beginning of
11        each delivery year.
12        To the extent there is uncontracted capacity from any
13    block in any of categories (i) through (vi) at the end of a
14    delivery year, the Agency shall redistribute that capacity
15    to one or more other categories giving priority to
16    categories with projects on a waitlist. The redistributed
17    capacity shall be added to the annual capacity in the
18    subsequent delivery year, and the price for renewable
19    energy credits shall be the price for the new delivery
20    year. Redistributed capacity shall not be considered
21    redistributed when determining whether the goals in this
22    subsection (K) have been met.
23        Notwithstanding anything to the contrary, as the
24    Agency increases the capacity in item (vi) to 40% over
25    time, the Agency may reduce the capacity of items (i)
26    through (v) proportionate to the capacity of the

 

 

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1    categories of projects in item (vi), to achieve a balance
2    of project types.
3        The Adjustable Block program shall be designed to
4    ensure that renewable energy credits are procured from
5    photovoltaic distributed renewable energy generation
6    devices and new photovoltaic community renewable energy
7    generation projects in diverse locations and are not
8    concentrated in a few regional geographic areas.
9        (L) Notwithstanding provisions for advancing capital
10    prior to project energization found in item (vi) of
11    subparagraph (K), the The procurement of photovoltaic
12    renewable energy credits under items (i) through (vi) (iv)
13    of subparagraph (K) of this paragraph (1) shall otherwise
14    be subject to the following contract and payment terms:
15        (i) (Blank). The Agency shall procure contracts of at
16        least 15 years in length.
17            (ii) For those renewable energy credits that
18        qualify and are procured under item (i) of
19        subparagraph (K) of this paragraph (1), and any
20        similar category projects that are procured under item
21        (vi) of subparagraph (K) of this paragraph (1) that
22        qualify and are procured under item (vi), the contract
23        length shall be 15 years. The renewable energy credit
24        delivery contract value purchase price shall be paid
25        in full, based on the estimated generation during the
26        first 15 years of operation, by the contracting

 

 

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1        utilities at the time that the facility producing the
2        renewable energy credits is interconnected at the
3        distribution system level of the utility and verified
4        as energized and compliant by the Program
5        Administrator energized. The electric utility shall
6        receive and retire all renewable energy credits
7        generated by the project for the first 15 years of
8        operation. Renewable energy credits generated by the
9        project thereafter shall not be transferred under the
10        renewable energy credit delivery contract with the
11        counterparty electric utility.
12            (iii) For those renewable energy credits that
13        qualify and are procured under item (ii) and (v) (iii)
14        of subparagraph (K) of this paragraph (1) and any like
15        projects similar category that qualify and are
16        procured under item (vi), the contract length shall be
17        15 years. 15% any additional categories of distributed
18        generation included in the long-term renewable
19        resources procurement plan and approved by the
20        Commission, 20 percent of the renewable energy credit
21        delivery contract value, based on the estimated
22        generation during the first 15 years of operation,
23        purchase price shall be paid by the contracting
24        utilities at the time that the facility producing the
25        renewable energy credits is interconnected at the
26        distribution system level of the utility and verified

 

 

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1        as energized and compliant by the Program
2        Administrator. The remaining portion shall be paid
3        ratably over the subsequent 6-year 4-year period. The
4        electric utility shall receive and retire all
5        renewable energy credits generated by the project for
6        the first 15 years of operation. Renewable energy
7        credits generated by the project thereafter shall not
8        be transferred under the renewable energy credit
9        delivery contract with the counterparty electric
10        utility.
11            (iv) For those renewable energy credits that
12        qualify and are procured under items (iii) and (iv) of
13        subparagraph (K) of this paragraph (1), and any like
14        projects that qualify and are procured under item
15        (vi), the renewable energy credit delivery contract
16        length shall be 20 years and shall be paid over the
17        delivery term, not to exceed during each delivery year
18        the contract price multiplied by the estimated annual
19        renewable energy credit generation amount. If
20        generation of renewable energy credits during a
21        delivery year exceeds the estimated annual generation
22        amount, the excess renewable energy credits shall be
23        carried forward to future delivery years and shall not
24        expire during the delivery term. If generation of
25        renewable energy credits during a delivery year,
26        including carried forward excess renewable energy

 

 

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1        credits, if any, is less than the estimated annual
2        generation amount, payments during such delivery year
3        will not exceed the quantity generated plus the
4        quantity carried forward multiplied by the contract
5        price. The electric utility shall receive all
6        renewable energy credits generated by the project
7        during the first 20 years of operation and retire all
8        renewable energy credits paid for under this item (iv)
9        and return at the end of the delivery term all
10        renewable energy credits that were not paid for.
11        Renewable energy credits generated by the project
12        thereafter shall not be transferred under the
13        renewable energy credit delivery contract with the
14        counterparty electric utility. Notwithstanding the
15        preceding, for those projects participating under item
16        (iii) of subparagraph (K), the contract price for a
17        delivery year shall be based on subscription levels as
18        measured on the higher of the first business day of the
19        delivery year or the first business day 6 months after
20        the first business day of the delivery year.
21        Subscription of 90% of nameplate capacity or greater
22        shall be deemed to be fully subscribed for the
23        purposes of this item (iv). For projects receiving a
24        20-year delivery contract, REC prices shall be
25        adjusted downward for consistency with the incentive
26        levels previously determined to be necessary to

 

 

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1        support projects under 15-year delivery contracts,
2        taking into consideration any additional new
3        requirements placed on the projects, including, but
4        not limited to, labor standards.
5            (v) (iv) Each contract shall include provisions to
6        ensure the delivery of the estimated quantity of
7        renewable energy credits and ongoing collateral
8        requirements and other provisions deemed appropriate
9        by the Agency for the full term of the contract.
10            (vi) (v) The utility shall be the counterparty to
11        the contracts executed under this subparagraph (L)
12        that are approved by the Commission under the process
13        described in Section 16-111.5 of the Public Utilities
14        Act. No contract shall be executed for an amount that
15        is less than one renewable energy credit per year.
16            (vii) (vi) If, at any time, approved applications
17        for the Adjustable Block program exceed funds
18        collected by the electric utility or would cause the
19        Agency to exceed the limitation described in
20        subparagraph (E) of this paragraph (1) on the amount
21        of renewable energy resources that may be procured,
22        then the Agency may shall consider future uncommitted
23        funds to be reserved for these contracts on a
24        first-come, first-served basis, with the delivery of
25        renewable energy credits required beginning at the
26        time that the reserved funds become available.

 

 

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1            (viii) (vii) Nothing in this Section shall require
2        the utility to advance any payment or pay any amounts
3        that exceed the actual amount of revenues anticipated
4        to be collected by the utility under paragraph (6) of
5        this subsection (c) and subsection (k) of Section
6        16-108 of the Public Utilities Act inclusive of
7        eligible funds collected in prior years and
8        alternative compliance payments for use by the
9        utility, and contracts executed under this Section
10        shall expressly incorporate this limitation.
11            (ix) Notwithstanding other requirements of this
12        subparagraph (L), no modification shall be required to
13        Adjustable Block program contracts if they were
14        already executed prior to the establishment, approval,
15        and implementation of new contract forms as a result
16        of this amendatory Act of the 102nd General Assembly.
17            (x) Contracts may be assignable, but only to
18        entities first deemed by the Agency to have met
19        program terms and requirements applicable to direct
20        program participation. In developing contracts for the
21        delivery of renewable energy credits, the Agency shall
22        be permitted to establish fees applicable to each
23        contract assignment.
24        (M) The Agency shall be authorized to retain one or
25    more experts or expert consulting firms to develop,
26    administer, implement, operate, and evaluate the

 

 

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1    Adjustable Block program described in subparagraph (K) of
2    this paragraph (1), and the Agency shall retain the
3    consultant or consultants in the same manner, to the
4    extent practicable, as the Agency retains others to
5    administer provisions of this Act, including, but not
6    limited to, the procurement administrator. The selection
7    of experts and expert consulting firms and the procurement
8    process described in this subparagraph (M) are exempt from
9    the requirements of Section 20-10 of the Illinois
10    Procurement Code, under Section 20-10 of that Code. The
11    Agency shall strive to minimize administrative expenses in
12    the implementation of the Adjustable Block program.
13        The Program Administrator may charge application fees
14    to participating firms to cover the cost of program
15    administration. Any application fee amounts shall
16    initially be determined through the long-term renewable
17    resources procurement plan, and modifications to any
18    application fee that deviate more than 25% from the
19    Commission's approved value must be approved by the
20    Commission as a long-term plan revision under Section
21    16-111.5 of the Public Utilities Act. The Agency shall
22    consider stakeholder feedback when making adjustments to
23    application fees and shall notify stakeholders in advance
24    of any planned changes.
25        In addition to covering the costs of program
26    administration, the Agency, in conjunction with its

 

 

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1    Program Administrator, may also use the proceeds of such
2    fees charged to participating firms to support public
3    education and ongoing regional and national coordination
4    with nonprofit organizations, public bodies, and others
5    engaged in the implementation of renewable energy
6    incentive programs or similar initiatives. This work may
7    include developing papers and reports, hosting regional
8    and national conferences, and other work deemed necessary
9    by the Agency to position the State of Illinois as a
10    national leader in renewable energy incentive program
11    development and administration.
12        The Agency and its consultant or consultants shall
13    monitor block activity, share program activity with
14    stakeholders and conduct quarterly regularly scheduled
15    meetings to discuss program activity and market
16    conditions. If necessary, the Agency may make prospective
17    administrative adjustments to the Adjustable Block program
18    design, such as redistributing available funds or making
19    adjustments to purchase prices as necessary to achieve the
20    goals of this subsection (c). Program modifications to any
21    block price, capacity block, or other program element that
22    do not deviate from the Commission's approved value by
23    more than 10% 25% shall take effect immediately and are
24    not subject to Commission review and approval. Program
25    modifications to any block price, capacity block, or other
26    program element that deviate more than 10% 25% from the

 

 

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1    Commission's approved value must be approved by the
2    Commission as a long-term plan amendment under Section
3    16-111.5 of the Public Utilities Act. The Agency shall
4    consider stakeholder feedback when making adjustments to
5    the Adjustable Block design and shall notify stakeholders
6    in advance of any planned changes.
7        The Agency and its program administrators for both the
8    Adjustable Block program and the Illinois Solar for All
9    Program, consistent with the requirements of this
10    subsection (c) and subsection (b) of Section 1-56 of this
11    Act, shall propose the Adjustable Block program terms,
12    conditions, and requirements, including the prices to be
13    paid for renewable energy credits, where applicable, and
14    requirements applicable to participating entities and
15    project applications, through the development, review, and
16    approval of the Agency's long-term renewable resources
17    procurement plan described in this subsection (c) and
18    paragraph (5) of subsection (b) of Section 16-111.5 of the
19    Public Utilities Act. Terms, conditions, and requirements
20    for program participation shall include the following:
21            (i) The Agency shall establish a registration
22        process for entities seeking to qualify for
23        program-administered incentive funding and establish
24        baseline qualifications for vendor approval. The
25        Agency must maintain a list of approved entities on
26        each program's website, and may revoke a vendor's

 

 

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1        ability to receive program-administered incentive
2        funding status upon a determination that the vendor
3        failed to comply with contract terms, the law, or
4        other program requirements.
5            (ii) The Agency shall establish program
6        requirements and the contract terms process to ensure
7        projects are properly installed and produce their
8        expected amounts of energy. Program requirements may
9        include on-site inspections and photo documentation of
10        projects under construction. The Agency may require
11        repairs, alterations, or additions to remedy any
12        material deficiencies discovered. Vendors who have a
13        disproportionately high number of deficient systems
14        may lose their eligibility to continue to receive
15        State-administered incentive funding through Agency
16        programs and procurements.
17            (iii) To discourage deceptive marketing or other
18        bad faith business practices, the Agency may require
19        direct program participants, including agents
20        operating on their behalf, to provide standardized
21        disclosures to a customer prior to that customer's
22        execution of a contract for the development of a
23        distributed generation system or a subscription to a
24        community solar project.
25            (iv) The Agency shall establish one or multiple
26        Consumer Complaints Centers to accept complaints

 

 

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1        regarding businesses that participate in, or otherwise
2        benefit from, State-administered incentive funding
3        through Agency-administered programs. The Agency shall
4        maintain a public database of complaints with any
5        confidential or particularly sensitive information
6        redacted from public entries.
7            (v) Through a filing in the proceeding for the
8        approval of its long-term renewable energy resources
9        procurement plan, the Agency shall provide an annual
10        written report to the Illinois Commerce Commission
11        documenting the frequency and nature of complaints and
12        any enforcement actions taken in response to those
13        complaints.
14            (vi) The Agency shall schedule regular meetings
15        with representatives of the Office of the Attorney
16        General, the Illinois Commerce Commission, consumer
17        protection groups, and other interested stakeholders
18        to share relevant information about consumer
19        protection, project compliance, and complaints
20        received.
21            (vii) To the extent that complaints received
22        implicate the jurisdiction of the Office of the
23        Attorney General, the Illinois Commerce Commission, or
24        local, State, or federal law enforcement, the Agency
25        shall also refer complaints to those entities as
26        appropriate.

 

 

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1        (N) The long-term renewable resources procurement plan
2    required by this subsection (c) shall include a community
3    renewable generation program. The Agency shall establish
4    the terms, conditions, and program requirements for
5    photovoltaic community renewable generation projects with
6    a goal to expand renewable energy generating facility
7    access to a broader group of energy consumers, to ensure
8    robust participation opportunities for residential and
9    small commercial customers and those who cannot install
10    renewable energy on their own properties. Subject to
11    reasonable limitations, any Any plan approved by the
12    Commission shall allow subscriptions to community
13    renewable generation projects to be portable and
14    transferable. For purposes of this subparagraph (N),
15    "portable" means that subscriptions may be retained by the
16    subscriber even if the subscriber relocates or changes its
17    address within the same utility service territory; and
18    "transferable" means that a subscriber may assign or sell
19    subscriptions to another person within the same utility
20    service territory.
21        Through the development of its long-term renewable
22    resources procurement plan, the Agency may consider
23    whether community renewable generation projects utilizing
24    technologies other than photovoltaics should be supported
25    through State-administered incentive funding, and may
26    issue requests for information to gauge market demand.

 

 

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1        Electric utilities shall provide a monetary credit to
2    a subscriber's subsequent bill for service for the
3    proportional output of a community renewable generation
4    project attributable to that subscriber as specified in
5    Section 16-107.5 of the Public Utilities Act.
6        The Agency shall purchase renewable energy credits
7    from subscribed shares of photovoltaic community renewable
8    generation projects through the Adjustable Block program
9    described in subparagraph (K) of this paragraph (1) or
10    through the Illinois Solar for All Program described in
11    Section 1-56 of this Act. The electric utility shall
12    purchase any unsubscribed energy from community renewable
13    generation projects that are Qualifying Facilities ("QF")
14    under the electric utility's tariff for purchasing the
15    output from QFs under Public Utilities Regulatory Policies
16    Act of 1978.
17        The owners of and any subscribers to a community
18    renewable generation project shall not be considered
19    public utilities or alternative retail electricity
20    suppliers under the Public Utilities Act solely as a
21    result of their interest in or subscription to a community
22    renewable generation project and shall not be required to
23    become an alternative retail electric supplier by
24    participating in a community renewable generation project
25    with a public utility.
26        (O) For the delivery year beginning June 1, 2018, the

 

 

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1    long-term renewable resources procurement plan required by
2    this subsection (c) shall provide for the Agency to
3    procure contracts to continue offering the Illinois Solar
4    for All Program described in subsection (b) of Section
5    1-56 of this Act, and the contracts approved by the
6    Commission shall be executed by the utilities that are
7    subject to this subsection (c). The long-term renewable
8    resources procurement plan shall allocate up to
9    $50,000,000 5% of the funds available under the plan for
10    the applicable delivery year, or $10,000,000 per delivery
11    year, whichever is greater, to fund the programs, and the
12    plan shall determine the amount of funding to be
13    apportioned to the programs identified in subsection (b)
14    of Section 1-56 of this Act; provided that for the
15    delivery years beginning June 1, 2021, June 1, 2022, and
16    June 1, 2023, the long-term renewable resources
17    procurement plan may average the annual budgets over a
18    3-year period to account for program ramp-up. For for the
19    delivery years beginning June 1, 2017, June 1, 2021, and
20    June 1, 2024 2025, June 1, 2027, and June 1, 2030 and
21    additional the long-term renewable resources procurement
22    plan shall allocate 10% of the funds available under the
23    plan for the applicable delivery year, or $20,000,000 per
24    delivery year, whichever is greater, and $10,000,000 of
25    such funds in such year shall be provided to the
26    Department of Commerce and Economic Opportunity to

 

 

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1    implement the workforce development programs and reporting
2    as outlined in used by an electric utility that serves
3    more than 3,000,000 retail customers in the State to
4    implement a Commission-approved plan under Section
5    16-108.12 of the Public Utilities Act. In making the
6    determinations required under this subparagraph (O), the
7    Commission shall consider the experience and performance
8    under the programs and any evaluation reports. The
9    Commission shall also provide for an independent
10    evaluation of those programs on a periodic basis that are
11    funded under this subparagraph (O).
12        (P) All programs and procurements under this
13    subsection (c) shall be designed to encourage
14    participating projects to use a diverse and equitable
15    workforce and a diverse set of contractors, including
16    minority-owned businesses, disadvantaged businesses,
17    trade unions, graduates of any workforce training programs
18    administered under this Act, and small businesses.
19        The Agency shall develop a method to optimize
20    procurement of renewable energy credits from proposed
21    utility-scale projects that are located in communities
22    eligible to receive Energy Transition Community Grants
23    pursuant to Section 10-20 of the Energy Community
24    Reinvestment Act. If this requirement conflicts with other
25    provisions of law or the Agency determines that full
26    compliance with the requirements of this subparagraph (P)

 

 

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1    would be unreasonably costly or administratively
2    impractical, the Agency is to propose alternative
3    approaches to achieve development of renewable energy
4    resources in communities eligible to receive Energy
5    Transition Community Grants pursuant to Section 10-20 of
6    the Energy Community Reinvestment Act or seek an exemption
7    from this requirement from the Commission.
8        (Q) Each facility listed in subitems (i) through
9    (viii) of item (1) of this subparagraph (Q) for which a
10    renewable energy credit delivery contract is signed after
11    the effective date of this amendatory Act of the 102nd
12    General Assembly is subject to the following requirements
13    through the Agency's long-term renewable resources
14    procurement plan:
15            (1) Each facility shall be subject to the
16        prevailing wage requirements included in the
17        Prevailing Wage Act. The Agency shall require
18        verification that all construction performed on the
19        facility by the renewable energy credit delivery
20        contract holder, its contractors, or its
21        subcontractors relating to construction of the
22        facility is performed by construction employees
23        receiving an amount for that work equal to or greater
24        than the general prevailing rate, as that term is
25        defined in Section 3 of the Prevailing Wage Act. For
26        purposes of this item (1), "house of worship" means

 

 

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1        property that is both (1) used exclusively by a
2        religious society or body of persons as a place for
3        religious exercise or religious worship and (2)
4        recognized as exempt from taxation pursuant to Section
5        15-40 of the Property Tax Code. This item (1) shall
6        apply to any the following:
7                (i) all new utility-scale wind projects;
8                (ii) all new utility-scale photovoltaic
9            projects;
10                (iii) all new brownfield photovoltaic
11            projects;
12                (iv) all new photovoltaic community renewable
13            energy facilities that qualify for item (iii) of
14            subparagraph (K) of this paragraph (1);
15                (v) all new community driven community
16            photovoltaic projects that qualify for item (v) of
17            subparagraph (K) of this paragraph (1);
18                (vi) all new photovoltaic distributed
19            renewable energy generation devices on schools
20            that qualify for item (iv) of subparagraph (K) of
21            this paragraph (1);
22                (vii) all new photovoltaic distributed
23            renewable energy generation devices that (1)
24            qualify for item (i) of subparagraph (K) of this
25            paragraph (1); (2) are not projects that serve
26            single-family or multi-family residential

 

 

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1            buildings; and (3) are not houses of worship where
2            the aggregate capacity including collocated
3            projects would not exceed 100 kilowatts;
4                (viii) all new photovoltaic distributed
5            renewable energy generation devices that (1)
6            qualify for item (ii) of subparagraph (K) of this
7            paragraph (1); (2) are not projects that serve
8            single-family or multi-family residential
9            buildings; and (3) are not houses of worship where
10            the aggregate capacity including collocated
11            projects would not exceed 100 kilowatts.
12            (2) Renewable energy credits procured from new
13        utility-scale wind projects, new utility-scale solar
14        projects, and new brownfield solar projects pursuant
15        to Agency procurement events occurring after the
16        effective date of this amendatory Act of the 102nd
17        General Assembly must be from facilities built by
18        general contractors that must enter into a project
19        labor agreement, as defined by this Act, prior to
20        construction. The project labor agreement shall be
21        filed with the Director in accordance with procedures
22        established by the Agency through its long-term
23        renewable resources procurement plan. Any information
24        submitted to the Agency in this item (2) shall be
25        considered commercially sensitive information. At a
26        minimum, the project labor agreement must provide the

 

 

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1        names, addresses, and occupations of the owner of the
2        plant and the individuals representing the labor
3        organization employees participating in the project
4        labor agreement consistent with the Project Labor
5        Agreements Act. The agreement must also specify the
6        terms and conditions as defined by this Act.
7            (3) It is the intent of this Section to ensure that
8        economic development occurs across Illinois
9        communities, that emerging businesses may grow, and
10        that there is improved access to the clean energy
11        economy by persons who have greater economic burdens
12        to success. The Agency shall take into consideration
13        the unique cost of compliance of this subparagraph (Q)
14        that might be borne by equity eligible contractors,
15        shall include such costs when determining the price of
16        renewable energy credits in the Adjustable Block
17        program, and shall take such costs into consideration
18        in a nondiscriminatory manner when comparing bids for
19        competitive procurements. The Agency shall consider
20        costs associated with compliance whether in the
21        development, financing, or construction of projects.
22        The Agency shall periodically review the assumptions
23        in these costs and may adjust prices, in compliance
24        with subparagraph (M) of this paragraph (1).
25        (R) In its long-term renewable resources procurement
26    plan, the Agency shall establish a self-direct renewable

 

 

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1    portfolio standard compliance program for eligible
2    self-direct customers that purchase renewable energy
3    credits from utility-scale wind and solar projects through
4    long-term agreements for purchase of renewable energy
5    credits as described in this Section. Such long-term
6    agreements may include the purchase of energy or other
7    products on a physical or financial basis and may involve
8    an alternative retail electric supplier as defined in
9    Section 16-102 of the Public Utilities Act. This program
10    shall take effect in the delivery year commencing June 1,
11    2023.
12            (1) For the purposes of this subparagraph:
13            "Eligible self-direct customer" means any retail
14        customers of an electric utility that serves 3,000,000
15        or more retail customers in the State and whose total
16        highest 30-minute demand was more than 10,000
17        kilowatts, or any retail customers of an electric
18        utility that serves less than 3,000,000 retail
19        customers but more than 500,000 retail customers in
20        the State and whose total highest 15-minute demand was
21        more than 10,000 kilowatts.
22            "Retail customer" has the meaning set forth in
23        Section 16-102 of the Public Utilities Act and
24        multiple retail customer accounts under the same
25        corporate parent may aggregate their account demands
26        to meet the 10,000 kilowatt threshold. The criteria

 

 

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1        for determining whether this subparagraph is
2        applicable to a retail customer shall be based on the
3        12 consecutive billing periods prior to the start of
4        the year in which the application is filed.
5            (2) For renewable energy credits to count toward
6        the self-direct renewable portfolio standard
7        compliance program, they must:
8                (i) qualify as renewable energy credits as
9            defined in Section 1-10 of this Act;
10                (ii) be sourced from one or more renewable
11            energy generating facilities that comply with the
12            geographic requirements as set forth in
13            subparagraph (I) of paragraph (1) of subsection
14            (c) as interpreted through the Agency's long-term
15            renewable resources procurement plan, or, where
16            applicable, the geographic requirements that
17            governed utility-scale renewable energy credits at
18            the time the eligible self-direct customer entered
19            into the applicable renewable energy credit
20            purchase agreement;
21                (iii) be procured through long-term contracts
22            with term lengths of at least 10 years either
23            directly with the renewable energy generating
24            facility or through a bundled power purchase
25            agreement, a virtual power purchase agreement, an
26            agreement between the renewable generating

 

 

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1            facility, an alternative retail electric supplier,
2            and the customer, or such other structure as is
3            permissible under this subparagraph (R);
4                (iv) be equivalent in volume to at least 40%
5            of the eligible self-direct customer's usage,
6            determined annually by the eligible self-direct
7            customer's usage during the previous delivery
8            year, measured to the nearest megawatt-hour;
9                (v) be retired by or on behalf of the large
10            energy customer;
11                (vi) be sourced from new utility-scale wind
12            projects or new utility-scale solar projects; and
13                (vii) if the contracts for renewable energy
14            credits are entered into after the effective date
15            of this amendatory Act of the 102nd General
16            Assembly, the new utility-scale wind projects or
17            new utility-scale solar projects must comply with
18            the requirements established in subparagraphs (P)
19            and (Q) of paragraph (1) of this subsection (c)
20            and subsection (c-10).
21            (3) The self-direct renewable portfolio standard
22        compliance program shall be designed to allow eligible
23        self-direct customers to procure new renewable energy
24        credits from new utility-scale wind projects or new
25        utility-scale photovoltaic projects. The Agency shall
26        annually determine the amount of utility-scale

 

 

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1        renewable energy credits it will include each year
2        from the self-direct renewable portfolio standard
3        compliance program, subject to receiving qualifying
4        applications. In making this determination, the Agency
5        shall evaluate publicly available analyses and studies
6        of the potential market size for utility-scale
7        renewable energy long-term purchase agreements by
8        commercial and industrial energy customers and make
9        that report publicly available. If demand for
10        participation in the self-direct renewable portfolio
11        standard compliance program exceeds availability, the
12        Agency shall ensure participation is evenly split
13        between commercial and industrial users to the extent
14        there is sufficient demand from both customer classes.
15        Each renewable energy credit procured pursuant to this
16        subparagraph (R) by a self-direct customer shall
17        reduce the total volume of renewable energy credits
18        the Agency is otherwise required to procure from new
19        utility-scale projects pursuant to subparagraph (C) of
20        paragraph (1) of this subsection (c) on behalf of
21        contracting utilities where the eligible self-direct
22        customer is located. The self-direct customer shall
23        file an annual compliance report with the Agency
24        pursuant to terms established by the Agency through
25        its long-term renewable resources procurement plan to
26        be eligible for participation in this program.

 

 

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1        Customers must provide the Agency with their most
2        recent electricity billing statements or other
3        information deemed necessary by the Agency to
4        demonstrate they are an eligible self-direct customer.
5            (4) The Commission shall approve a reduction in
6        the volumetric charges collected pursuant to Section
7        16-108 of the Public Utilities Act for approved
8        eligible self-direct customers equivalent to the
9        anticipated cost of renewable energy credit deliveries
10        under contracts for new utility-scale wind and new
11        utility-scale solar entered for each delivery year
12        after the large energy customer begins retiring
13        eligible new utility scale renewable energy credits
14        for self-compliance. The self-direct credit amount
15        shall be determined annually and is equal to the
16        estimated portion of the cost authorized by
17        subparagraph (E) of paragraph (1) of this subsection
18        (c) that supported the annual procurement of
19        utility-scale renewable energy credits in the prior
20        delivery year using a methodology described in the
21        long-term renewable resources procurement plan,
22        expressed on a per kilowatthour basis, and does not
23        include (i) costs associated with any contracts
24        entered into before the delivery year in which the
25        customer files the initial compliance report to be
26        eligible for participation in the self-direct program,

 

 

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1        and (ii) costs associated with procuring renewable
2        energy credits through existing and future contracts
3        through the Adjustable Block Program, subsection (c-5)
4        of this Section 1-75, and the Solar for All Program.
5        The Agency shall assist the Commission in determining
6        the current and future costs. The Agency must
7        determine the self-direct credit amount for new and
8        existing eligible self-direct customers and submit
9        this to the Commission in an annual compliance filing.
10        The Commission must approve the self-direct credit
11        amount by June 1, 2023 and June 1 of each delivery year
12        thereafter.
13            (5) Customers described in this subparagraph (R)
14        shall apply, on a form developed by the Agency, to the
15        Agency to be designated as a self-direct eligible
16        customer. Thereafter, application may be made not less
17        than 18 months before the filing date of the long-term
18        renewable resources procurement plan described in this
19        Act. At a minimum, such application shall contain the
20        following:
21                (i) the customer's certification that, at the
22            time of the customer's application, the customer
23            qualifies to be a self-direct eligible customer,
24            including documents demonstrating that
25            qualification;
26                (ii) the customer's certification that the

 

 

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1            customer has entered into or will enter into by
2            the beginning of the applicable procurement year,
3            one or more bilateral contracts for new wind
4            projects or new photovoltaic projects, including
5            supporting documentation;
6                (iii) certification that the contract or
7            contracts for new renewable energy resources are
8            long-term contracts with term lengths of at least
9            10 years, including supporting documentation;
10                (iv) certification of the quantities of
11            renewable energy credits that the customer will
12            purchase each year under such contract or
13            contracts, including supporting documentation;
14                (v) proof that the contract is sufficient to
15            produce renewable energy credits to be equivalent
16            in volume to at least 40% of the large energy
17            customer's usage from the previous delivery year,
18            measured to the nearest megawatt-hour; and
19                (vi) certification that the customer intends
20            to maintain the contract for the duration of the
21            length of the contract.
22            (6) If a customer receives the self-direct credit
23        but fails to properly procure and retire renewable
24        energy credits as required under this subparagraph
25        (R), the Commission, on petition from the Agency and
26        after notice and hearing, may direct such customer's

 

 

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1        utility to recover the cost of the wrongfully received
2        self-direct credits plus interest through an adder to
3        charges assessed pursuant to Section 16-108 of the
4        Public Utilities Act. Self-direct customers who
5        knowingly fail to properly procure and retire
6        renewable energy credits and do not notify the Agency
7        are ineligible for continued participation in the
8        self-direct renewable portfolio standard compliance
9        program.
10        (2) (Blank).
11        (3) (Blank).
12        (4) The electric utility shall retire all renewable
13    energy credits used to comply with the standard.
14        (5) Beginning with the 2010 delivery year and ending
15    June 1, 2017, an electric utility subject to this
16    subsection (c) shall apply the lesser of the maximum
17    alternative compliance payment rate or the most recent
18    estimated alternative compliance payment rate for its
19    service territory for the corresponding compliance period,
20    established pursuant to subsection (d) of Section 16-115D
21    of the Public Utilities Act to its retail customers that
22    take service pursuant to the electric utility's hourly
23    pricing tariff or tariffs. The electric utility shall
24    retain all amounts collected as a result of the
25    application of the alternative compliance payment rate or
26    rates to such customers, and, beginning in 2011, the

 

 

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1    utility shall include in the information provided under
2    item (1) of subsection (d) of Section 16-111.5 of the
3    Public Utilities Act the amounts collected under the
4    alternative compliance payment rate or rates for the prior
5    year ending May 31. Notwithstanding any limitation on the
6    procurement of renewable energy resources imposed by item
7    (2) of this subsection (c), the Agency shall increase its
8    spending on the purchase of renewable energy resources to
9    be procured by the electric utility for the next plan year
10    by an amount equal to the amounts collected by the utility
11    under the alternative compliance payment rate or rates in
12    the prior year ending May 31.
13        (6) The electric utility shall be entitled to recover
14    all of its costs associated with the procurement of
15    renewable energy credits under plans approved under this
16    Section and Section 16-111.5 of the Public Utilities Act.
17    These costs shall include associated reasonable expenses
18    for implementing the procurement programs, including, but
19    not limited to, the costs of administering and evaluating
20    the Adjustable Block program, through an automatic
21    adjustment clause tariff in accordance with subsection (k)
22    of Section 16-108 of the Public Utilities Act.
23        (7) Renewable energy credits procured from new
24    photovoltaic projects or new distributed renewable energy
25    generation devices under this Section after June 1, 2017
26    (the effective date of Public Act 99-906) must be procured

 

 

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1    from devices installed by a qualified person in compliance
2    with the requirements of Section 16-128A of the Public
3    Utilities Act and any rules or regulations adopted
4    thereunder.
5        In meeting the renewable energy requirements of this
6    subsection (c), to the extent feasible and consistent with
7    State and federal law, the renewable energy credit
8    procurements, Adjustable Block solar program, and
9    community renewable generation program shall provide
10    employment opportunities for all segments of the
11    population and workforce, including minority-owned and
12    female-owned business enterprises, and shall not,
13    consistent with State and federal law, discriminate based
14    on race or socioeconomic status.
15    (c-5) Procurement of renewable energy credits from new
16renewable energy facilities installed at or adjacent to the
17sites of electric generating facilities that burn or burned
18coal as their primary fuel source.
19        (1) In addition to the procurement of renewable energy
20    credits pursuant to long-term renewable resources
21    procurement plans in accordance with subsection (c) of
22    this Section and Section 16-111.5 of the Public Utilities
23    Act, the Agency shall conduct procurement events in
24    accordance with this subsection (c-5) for the procurement
25    by electric utilities that served more than 300,000 retail
26    customers in this State as of January 1, 2019 of renewable

 

 

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1    energy credits from new renewable energy facilities to be
2    installed at or adjacent to the sites of electric
3    generating facilities that, as of January 1, 2016, burned
4    coal as their primary fuel source and meet the other
5    criteria specified in this subsection (c-5). For purposes
6    of this subsection (c-5), "new renewable energy facility"
7    means a new utility-scale solar project as defined in this
8    Section 1-75. The renewable energy credits procured
9    pursuant to this subsection (c-5) may be included or
10    counted for purposes of compliance with the amounts of
11    renewable energy credits required to be procured pursuant
12    to subsection (c) of this Section to the extent that there
13    are otherwise shortfalls in compliance with such
14    requirements. The procurement of renewable energy credits
15    by electric utilities pursuant to this subsection (c-5)
16    shall be funded solely by revenues collected from the Coal
17    to Solar and Energy Storage Initiative Charge provided for
18    in this subsection (c-5) and subsection (i-5) of Section
19    16-108 of the Public Utilities Act, shall not be funded by
20    revenues collected through any of the other funding
21    mechanisms provided for in subsection (c) of this Section,
22    and shall not be subject to the limitation imposed by
23    subsection (c) on charges to retail customers for costs to
24    procure renewable energy resources pursuant to subsection
25    (c), and shall not be subject to any other requirements or
26    limitations of subsection (c).

 

 

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1        (2) The Agency shall conduct 2 procurement events to
2    select owners of electric generating facilities meeting
3    the eligibility criteria specified in this subsection
4    (c-5) to enter into long-term contracts to sell renewable
5    energy credits to electric utilities serving more than
6    300,000 retail customers in this State as of January 1,
7    2019. The first procurement event shall be conducted no
8    later than January 30, 2022, unless the Agency elects to
9    deny it, until no later than March 31, 2022, due to its
10    overall volume of work, and shall be to select owners of
11    electric generating facilities located in this State and
12    south of federal Interstate Highway 80 that meet the
13    eligibility criteria specified in this subsection (c-5).
14    The second procurement event shall be conducted no sooner
15    than September 30, 2022 and no later than October 31, 2022
16    and shall be to select owners of electric generating
17    facilities located anywhere in this State that meet the
18    eligibility criteria specified in this subsection (c-5).
19    The Agency shall establish and announce a time period,
20    which shall begin no later than 30 days prior to the
21    scheduled date for the procurement event, during which
22    applicants may submit applications to be selected as
23    suppliers of renewable energy credits pursuant to this
24    subsection (c-5). The eligibility criteria for selection
25    as a supplier of renewable energy credits pursuant to this
26    subsection (c-5) shall be as follows:

 

 

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1            (A) The applicant owns an electric generating
2        facility located in this State that: (i) is located
3        south of federal Interstate Highway 80; (ii) as of
4        January 1, 2016, burned coal as its primary fuel to
5        generate electricity; (iii) has, or had prior to
6        retirement, an electric generating capacity of at
7        least 150 megawatts; and (iv) if the electric
8        generating facility is physically interconnected to
9        the PJM Interconnection, LLC transmission grid, had a
10        generating capacity of less than 1,200 megawatts as of
11        January 1, 2021. The electric generating facility can
12        be either: (i) retired as of the date of the
13        procurement event; or (ii) still operating as of the
14        date of the procurement event.
15            (B) The applicant is not (i) an electric
16        cooperative as defined in Section 3-119 of the Public
17        Utilities Act, or (ii) an entity described in
18        subsection (b)(1) of Section 3-105 of the Public
19        Utilities Act, or an association or consortium of or
20        an entity owned by entities described in (i) or (ii);
21        and the coal-fueled electric generating facility was
22        at one time owned, in whole or in part, by a public
23        utility as defined in Section 3-105 of the Public
24        Utilities Act.
25            (C) If participating in the first procurement
26        event, the applicant proposes and commits to construct

 

 

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1        and operate, at the site, and if necessary for
2        sufficient space on property adjacent to the existing
3        property, at which the electric generating facility
4        identified in paragraph (A) is located: (i) a new
5        renewable energy facility of at least 20 megawatts but
6        no more than 100 megawatts of electric generating
7        capacity, and (ii) an energy storage facility having a
8        storage capacity equal to at least 2 megawatts and at
9        most 10 megawatts. If participating in the second
10        procurement event, the applicant proposes and commits
11        to construct and operate, at the site, and if
12        necessary for sufficient space on property adjacent to
13        the existing property, at which the electric
14        generating facility identified in paragraph (A) is
15        located: (i) a new renewable energy facility of at
16        least 5 megawatts but no more than 20 megawatts of
17        electric generating capacity, and (ii) an energy
18        storage facility having a storage capacity equal to at
19        least 0.5 megawatts and at most one megawatt.
20            (D) The applicant agrees that the new renewable
21        energy facility and the energy storage facility will
22        be constructed or installed by a qualified entity or
23        entities in compliance with the requirements of
24        subsection (g) of Section 16-128A of the Public
25        Utilities Act and any rules adopted thereunder.
26            (E) The applicant agrees that personnel operating

 

 

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1        the new renewable energy facility and the energy
2        storage facility will have the requisite skills,
3        knowledge, training, experience, and competence, which
4        may be demonstrated by completion or current
5        participation and ultimate completion by employees of
6        an accredited or otherwise recognized apprenticeship
7        program for the employee's particular craft, trade, or
8        skill, including through training and education
9        courses and opportunities offered by the owner to
10        employees of the coal-fueled electric generating
11        facility or by previous employment experience
12        performing the employee's particular work skill or
13        function.
14            (F) The applicant commits that not less than the
15        prevailing wage, as determined pursuant to the
16        Prevailing Wage Act, will be paid to the applicant's
17        employees engaged in construction activities
18        associated with the new renewable energy facility and
19        the new energy storage facility and to the employees
20        of applicant's contractors engaged in construction
21        activities associated with the new renewable energy
22        facility and the new energy storage facility, and
23        that, on or before the commercial operation date of
24        the new renewable energy facility, the applicant shall
25        file a report with the Agency certifying that the
26        requirements of this subparagraph (F) have been met.

 

 

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1            (G) The applicant commits that if selected, it
2        will negotiate a project labor agreement for the
3        construction of the new renewable energy facility and
4        associated energy storage facility that includes
5        provisions requiring the parties to the agreement to
6        work together to establish diversity threshold
7        requirements and to ensure best efforts to meet
8        diversity targets, improve diversity at the applicable
9        job site, create diverse apprenticeship opportunities,
10        and create opportunities to employ former coal-fired
11        power plant workers.
12            (H) The applicant commits to enter into a contract
13        or contracts for the applicable duration to provide
14        specified numbers of renewable energy credits each
15        year from the new renewable energy facility to
16        electric utilities that served more than 300,000
17        retail customers in this State as of January 1, 2019,
18        at a price of $30 per renewable energy credit. The
19        price per renewable energy credit shall be fixed at
20        $30 for the applicable duration and the renewable
21        energy credits shall not be indexed renewable energy
22        credits as provided for in item (v) of subparagraph
23        (G) of paragraph (1) of subsection (c) of Section 1-75
24        of this Act. The applicable duration of each contract
25        shall be 20 years.
26            (I) The applicant's application is certified by an

 

 

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1        officer of the applicant and by an officer of the
2        applicant's ultimate parent company, if any.
3        (3) An applicant may submit applications to contract
4    to supply renewable energy credits from more than one new
5    renewable energy facility to be constructed at or adjacent
6    to one or more qualifying electric generating facilities
7    owned by the applicant. The Agency may select new
8    renewable energy facilities to be located at or adjacent
9    to the sites of more than one qualifying electric
10    generation facility owned by an applicant to contract with
11    electric utilities to supply renewable energy credits from
12    such facilities.
13        (4) The Agency shall assess fees to each applicant to
14    recover the Agency's costs incurred in receiving and
15    evaluating applications, conducting the procurement event,
16    developing contracts for sale, delivery and purchase of
17    renewable energy credits, and monitoring the
18    administration of such contracts, as provided for in this
19    subsection (c-5), including fees paid to a procurement
20    administrator retained by the Agency for one or more of
21    these purposes.
22        (5) The Agency shall select the applicants and the new
23    renewable energy facilities to contract with electric
24    utilities to supply renewable energy credits in accordance
25    with this subsection (c-5). In the first procurement
26    event, the Agency shall select applicants and new

 

 

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1    renewable energy facilities to supply renewable energy
2    credits, at a price of $30 per renewable energy credit,
3    aggregating to no less than 400,000 renewable energy
4    credits per year for the 20 years, assuming sufficient
5    qualifying applications to supply, in the aggregate, at
6    least that amount of renewable energy credits per year;
7    and not more than 600,000 renewable energy credits per
8    year for the 20 years. In the second procurement event,
9    the Agency shall select applicants and new renewable
10    energy facilities to supply renewable energy credits, at a
11    prices of $30 per renewable energy credit, aggregating to
12    no more than 625,000 renewable energy credits per year
13    less the amount of renewable energy credits each year
14    contracted for as a result of the first procurement event,
15    for the applicable durations.
16        (6) The obligation to purchase renewable energy
17    credits from the applicants and their new renewable energy
18    facilities selected by the Agency shall be allocated to
19    the electric utilities based on their respective
20    percentages of kilowatthours delivered to delivery
21    services customers to the aggregate kilowatthour
22    deliveries by the electric utilities to delivery services
23    customers for the year ended December 31, 2021. In order
24    to achieve these allocation percentages between or among
25    the electric utilities, the Agency shall require each
26    applicant that is selected in the procurement event to

 

 

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1    enter into a contract with each electric utility for the
2    sale and purchase of renewable energy credits from each
3    new renewable energy facility to be constructed and
4    operated by the applicant, with the sale and purchase
5    obligations under the contracts to aggregate to the total
6    number of renewable energy credits per year to be supplied
7    by the applicant from the new renewable energy facility.
8        (7) The Agency shall submit its proposed selection of
9    applicants, new renewable energy facilities to be
10    constructed, and renewable energy credit amounts for each
11    procurement event to the Commission for approval. The
12    Commission shall, within 2 business days after receipt of
13    the Agency's proposed selections, approve the proposed
14    selections if it determines that the applicants and the
15    new renewable energy facilities to be constructed meet the
16    selection criteria set forth in this subsection (c-5) and
17    that the Agency seeks approval for contracts of 20 years'
18    duration aggregating to no more than the maximum amount of
19    renewable energy credits per year authorized by this
20    subsection (c-5) for the procurement event, at a price of
21    $30 per renewable energy credit.
22        (8) The Agency, in conjunction with its procurement
23    administrator if one is retained, the electric utilities,
24    and potential applicants for contracts to produce and
25    supply renewable energy credits pursuant to this
26    subsection (c-5), shall develop a standard form contract

 

 

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1    for the sale, delivery and purchase of renewable energy
2    credits pursuant to this subsection (c-5). Each contract
3    resulting from the first procurement event shall allow for
4    a commercial operation date for the new renewable energy
5    facility of either June 1, 2023 or June 1, 2024, with such
6    dates subject to adjustment as provided in this paragraph.
7    Each contract resulting from the second procurement event
8    shall provide for a commercial operation date on June 1
9    next occurring up to 48 months after execution of the
10    contract. Each contract shall provide that the owner shall
11    receive payments for renewable energy credits for the
12    applicable durations beginning with the commercial
13    operation date of the new renewable energy facility. The
14    form contract shall provide for adjustments to the
15    commercial operation and payment start dates as needed due
16    to any delays in completing the procurement and
17    contracting processes, in finalizing interconnection
18    agreements and installing interconnection facilities, and
19    in obtaining other necessary governmental permits and
20    approvals. The form contract shall be, to the maximum
21    extent possible, consistent with standard electric
22    industry contracts for sale, delivery, and purchase of
23    renewable energy credits while taking into account the
24    specific requirements of this subsection (c-5). The form
25    contract shall provide for over-delivery and
26    under-delivery of renewable energy credits within

 

 

10200HB3666sam001- 422 -LRB102 13525 AMC 28481 a

1    reasonable ranges during each 12-month period and penalty,
2    default, and enforcement provisions for failure of the
3    selling party to deliver renewable energy credits as
4    specified in the contract and to comply with the
5    requirements of this subsection (c-5). The standard form
6    contract shall specify that all renewable energy credits
7    delivered to the electric utility pursuant to the contract
8    shall be retired. The Agency shall make the proposed
9    contracts available for a reasonable period for comment by
10    potential applicants, and shall publish the final form
11    contract at least 30 days before the date of the first
12    procurement event.
13        (9) Coal to Solar and Energy Storage Initiative
14    Charge.
15            (A) By no later than July 1, 2022, each electric
16        utility that served more than 300,000 retail customers
17        in this State as of January 1, 2019 shall file a tariff
18        with the Commission for the billing and collection of
19        a Coal to Solar and Energy Storage Initiative Charge
20        in accordance with subsection (i-5) of Section 16-108
21        of the Public Utilities Act, with such tariff to be
22        effective, following review and approval or
23        modification by the Commission, beginning January 1,
24        2023. The tariff shall provide for the calculation and
25        setting of the electric utility's Coal to Solar and
26        Energy Storage Initiative Charge to collect revenues

 

 

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1        estimated to be sufficient, in the aggregate, (i) to
2        enable the electric utility to pay for the renewable
3        energy credits it has contracted to purchase in the
4        delivery year beginning June 1, 2023 and each delivery
5        year thereafter from new renewable energy facilities
6        located at the sites of qualifying electric generating
7        facilities, and (ii) to fund the grant payments to be
8        made in each delivery year by the Department of
9        Commerce and Economic Opportunity, or any successor
10        department or agency, which shall be referred to in
11        this subsection (c-5) as the Department, pursuant to
12        paragraph (10) of this subsection (c-5). The electric
13        utility's tariff shall provide for the billing and
14        collection of the Coal to Solar and Energy Storage
15        Initiative Charge on each kilowatthour of electricity
16        delivered to its delivery services customers within
17        its service territory and shall provide for an annual
18        reconciliation of revenues collected with actual
19        costs, in accordance with subsection (i-5) of Section
20        16-108 of the Public Utilities Act.
21            (B) Each electric utility shall remit on a monthly
22        basis to the State Treasurer, for deposit in the Coal
23        to Solar and Energy Storage Initiative Fund provided
24        for in this subsection (c-5), the electric utility's
25        collections of the Coal to Solar and Energy Storage
26        Initiative Charge in the amount estimated to be needed

 

 

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1        by the Department for grant payments pursuant to grant
2        contracts entered into by the Department pursuant to
3        paragraph (10) of this subsection (c-5).
4        (10) Coal to Solar and Energy Storage Initiative Fund.
5            (A) The Coal to Solar and Energy Storage
6        Initiative Fund is established as a special fund in
7        the State treasury. The Coal to Solar and Energy
8        Storage Initiative Fund is authorized to receive, by
9        statutory deposit, that portion specified in item (B)
10        of paragraph (9) of this subsection (c-5) of moneys
11        collected by electric utilities through imposition of
12        the Coal to Solar and Energy Storage Initiative Charge
13        required by this subsection (c-5). The Coal to Solar
14        and Energy Storage Initiative Fund shall be
15        administered by the Department to provide grants to
16        support the installation and operation of energy
17        storage facilities at the sites of qualifying electric
18        generating facilities meeting the criteria specified
19        in this paragraph (10).
20            (B) The Coal to Solar and Energy Storage
21        Initiative Fund shall not be subject to sweeps,
22        administrative charges, or chargebacks, including, but
23        not limited to, those authorized under Section 8h of
24        the State Finance Act, that would in any way result in
25        the transfer of those funds from the Coal to Solar and
26        Energy Storage Initiative Fund to any other fund of

 

 

10200HB3666sam001- 425 -LRB102 13525 AMC 28481 a

1        this State or in having any such funds utilized for any
2        purpose other than the express purposes set forth in
3        this paragraph (10).
4            (C) The Department shall utilize up to
5        $280,500,000 in the Coal to Solar and Energy Storage
6        Initiative Fund for grants, assuming sufficient
7        qualifying applicants, to support installation of
8        energy storage facilities at the sites of up to 5
9        qualifying electric generating facilities located in
10        the Midcontinent Independent System Operator, Inc.,
11        region in Illinois that meet the criteria set forth in
12        this subparagraph (C). The criteria for receipt of a
13        grant pursuant to this subparagraph (C) are as
14        follows:
15                (1) the electric generating facility at the
16            site has, or had prior to retirement, an electric
17            generating capacity of at least 150 megawatts;
18                (2) the electric generating facility burns (or
19            burned prior to retirement) coal as its primary
20            source of fuel;
21                (3) if the electric generating facility is
22            retired, it was retired subsequent to January 1,
23            2016;
24                (4) the owner of the electric generating
25            facility has not been selected by the Agency
26            pursuant to this subsection (c-5) of this Section

 

 

10200HB3666sam001- 426 -LRB102 13525 AMC 28481 a

1            to enter into a contract to sell renewable energy
2            credits to one or more electric utilities from a
3            new renewable energy facility located or to be
4            located at or adjacent to the site at which the
5            electric generating facility is located;
6                (5) the electric generating facility located
7            at the site was at one time owned, in whole or in
8            part, by a public utility as defined in Section
9            3-105 of the Public Utilities Act;
10                (6) the electric generating facility at the
11            site is not owned by (i) an electric cooperative
12            as defined in Section 3-119 of the Public
13            Utilities Act, or (ii) an entity described in
14            subsection (b)(1) of Section 3-105 of the Public
15            Utilities Act, or an association or consortium of
16            or an entity owned by entities described in items
17            (i) or (ii);
18                (7) the proposed energy storage facility at
19            the site will have energy storage capacity of at
20            least 37 megawatts;
21                (8) the owner commits to place the energy
22            storage facility into commercial operation on
23            either June 1, 2024 or June 1, 2025, with such date
24            subject to adjustment as needed due to any delays
25            in completing the grant contracting process, in
26            finalizing interconnection agreements and in

 

 

10200HB3666sam001- 427 -LRB102 13525 AMC 28481 a

1            installing interconnection facilities, and in
2            obtaining necessary governmental permits and
3            approvals;
4                (9) the owner agrees that the new energy
5            storage facility will be constructed or installed
6            by a qualified entity or entities consistent with
7            the requirements of subsection (g) of Section
8            16-128A of the Public Utilities Act and any rules
9            adopted under that Section;
10                (10) the owner agrees that personnel operating
11            the energy storage facility will have the
12            requisite skills, knowledge, training, experience,
13            and competence, which may be demonstrated by
14            completion or current participation and ultimate
15            completion by employees of an accredited or
16            otherwise recognized apprenticeship program for
17            the employee's particular craft, trade, or skill,
18            including through training and education courses
19            and opportunities offered by the owner to
20            employees of the coal-fueled electric generating
21            facility or by previous employment experience
22            performing the employee's particular work skill or
23            function;
24                (11) the owner commits that not less than the
25            prevailing wage, as determined pursuant to the
26            Prevailing Wage Act, will be paid to the owner's

 

 

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1            employees engaged in construction activities
2            associated with the new energy storage facility
3            and to the employees of the owner's contractors
4            engaged in construction activities associated with
5            the new energy storage facility, and that, on or
6            before the commercial operation date of the new
7            energy storage facility, the owner shall file a
8            report with the Department certifying that the
9            requirements of this subparagraph (11) have been
10            met; and
11                (12) the owner commits that if selected to
12            receive a grant, it will negotiate a project labor
13            agreement for the construction of the new energy
14            storage facility that includes provisions
15            requiring the parties to the agreement to work
16            together to establish diversity threshold
17            requirements and to ensure best efforts to meet
18            diversity targets, improve diversity at the
19            applicable job site, create diverse apprenticeship
20            opportunities, and create opportunities to employ
21            former coal-fired power plant workers.
22            The Department shall accept applications for this
23        grant program until March 31, 2022 and shall announce
24        the award of grants no later than June 1, 2022. The
25        Department shall make the grant payments to a
26        recipient in equal annual amounts for 10 years

 

 

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1        following the date the energy storage facility is
2        placed into commercial operation. The annual grant
3        payments to a qualifying energy storage facility shall
4        be $110,000 per megawatt of energy storage capacity,
5        with total annual grant payments pursuant to this
6        subparagraph (C) for qualifying energy storage
7        facilities not to exceed $28,050,000 in any year.
8            (D) Grants of funding for energy storage
9        facilities pursuant to subparagraph (C) of this
10        paragraph (10), from the Coal to Solar and Energy
11        Storage Initiative Fund, shall be memorialized in
12        grant contracts between the Department and the
13        recipient. The grant contracts shall specify the date
14        or dates in each year on which the annual grant
15        payments shall be paid.
16            (E) All disbursements from the Coal to Solar and
17        Energy Storage Initiative Fund shall be made only upon
18        warrants of the Comptroller drawn upon the Treasurer
19        as custodian of the Fund upon vouchers signed by the
20        Director of the Department or by the person or persons
21        designated by the Director of the Department for that
22        purpose. The Comptroller is authorized to draw the
23        warrants upon vouchers so signed. The Treasurer shall
24        accept all written warrants so signed and shall be
25        released from liability for all payments made on those
26        warrants.

 

 

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1        (11) Diversity, equity, and inclusion plans.
2            (A) Each applicant selected in a procurement event
3        to contract to supply renewable energy credits in
4        accordance with this subsection (c-5) and each owner
5        selected by the Department to receive a grant or
6        grants to support the construction and operation of a
7        new energy storage facility or facilities in
8        accordance with this subsection (c-5) shall, within 60
9        days following the Commission's approval of the
10        applicant to contract to supply renewable energy
11        credits or within 60 days following execution of a
12        grant contract with the Department, as applicable,
13        submit to the Commission a diversity, equity, and
14        inclusion plan setting forth the applicant's or
15        owner's numeric goals for the diversity composition of
16        its supplier entities for the new renewable energy
17        facility or new energy storage facility, as
18        applicable, which shall be referred to for purposes of
19        this paragraph (11) as the project, and the
20        applicant's or owner's action plan and schedule for
21        achieving those goals.
22            (B) For purposes of this paragraph (11), diversity
23        composition shall be based on the percentage, which
24        shall be a minimum of 25%, of eligible expenditures
25        for contract awards for materials and services (which
26        shall be defined in the plan) to business enterprises

 

 

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1        owned by minority persons, women, or persons with
2        disabilities as defined in Section 2 of the Business
3        Enterprise for Minorities, Women, and Persons with
4        Disabilities Act, to LGBTQ business enterprises, to
5        veteran-owned business enterprises, and to business
6        enterprises located in environmental justice
7        communities. The diversity composition goals of the
8        plan may include eligible expenditures in areas for
9        vendor or supplier opportunities in addition to
10        development and construction of the project, and may
11        exclude from eligible expenditures materials and
12        services with limited market availability, limited
13        production and availability from suppliers in the
14        United States, such as solar panels and storage
15        batteries, and material and services that are subject
16        to critical energy infrastructure or cybersecurity
17        requirements or restrictions. The plan may provide
18        that the diversity composition goals may be met
19        through Tier 1 Direct or Tier 2 subcontracting
20        expenditures or a combination thereof for the project.
21            (C) The plan shall provide for, but not be limited
22        to: (i) internal initiatives, including multi-tier
23        initiatives, by the applicant or owner, or by its
24        engineering, procurement and construction contractor
25        if one is used for the project, which for purposes of
26        this paragraph (11) shall be referred to as the EPC

 

 

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1        contractor, to enable diverse businesses to be
2        considered fairly for selection to provide materials
3        and services; (ii) requirements for the applicant or
4        owner or its EPC contractor to proactively solicit and
5        utilize diverse businesses to provide materials and
6        services; and (iii) requirements for the applicant or
7        owner or its EPC contractor to hire a diverse
8        workforce for the project. The plan shall include a
9        description of the applicant's or owner's diversity
10        recruiting efforts both for the project and for other
11        areas of the applicant's or owner's business
12        operations. The plan shall provide for the imposition
13        of financial penalties on the applicant's or owner's
14        EPC contractor for failure to exercise best efforts to
15        comply with and execute the EPC contractor's diversity
16        obligations under the plan. The plan may provide for
17        the applicant or owner to set aside a portion of the
18        work on the project to serve as an incubation program
19        for qualified businesses, as specified in the plan,
20        owned by minority persons, women, persons with
21        disabilities, LGBTQ persons, and veterans, and
22        businesses located in environmental justice
23        communities, seeking to enter the renewable energy
24        industry.
25            (D) The applicant or owner may submit a revised or
26        updated plan to the Commission from time to time as

 

 

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1        circumstances warrant. The applicant or owner shall
2        file annual reports with the Commission detailing the
3        applicant's or owner's progress in implementing its
4        plan and achieving its goals and any modifications the
5        applicant or owner has made to its plan to better
6        achieve its diversity, equity and inclusion goals. The
7        applicant or owner shall file a final report on the
8        fifth June 1 following the commercial operation date
9        of the new renewable energy resource or new energy
10        storage facility, but the applicant or owner shall
11        thereafter continue to be subject to the reporting
12        requirements of Section 5-117 of the Public Utilities
13        Act.
14    (c-10) Equity accountability system. It is the purpose of
15this subsection (c-10) to create an equity accountability
16system, which includes the minimum equity standards for all
17renewable energy procurements, the equity category of the
18Adjustable Block Program, and the equity prioritization for
19noncompetitive procurements, that is successful in advancing
20priority access to the clean energy economy for businesses and
21workers from communities that have been excluded from economic
22opportunities in the energy sector, have been subject to
23disproportionate levels of pollution, and have
24disproportionately experienced negative public health
25outcomes. Further, it is the purpose of this subsection to
26ensure that this equity accountability system is successful in

 

 

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1advancing equity across Illinois by providing access to the
2clean energy economy for businesses and workers from
3communities that have been historically excluded from economic
4opportunities in the energy sector, have been subject to
5disproportionate levels of pollution, and have
6disproportionately experienced negative public health
7outcomes.
8        (1) Minimum equity standards. All applications for
9    renewable energy credit procurements shall comply with
10    specific minimum equity commitments. Starting in the
11    delivery year immediately following the next long-term
12    renewable resources procurement plan, at least 10% of the
13    project workforce for each entity participating in a
14    procurement program outlined in this subsection (c-10)
15    must be done by equity eligible persons or equity eligible
16    contractors. The Agency shall increase the minimum
17    percentage each delivery year thereafter by increments
18    that ensure a statewide average of 30% of the project
19    workforce for each entity participating in a procurement
20    program is done by equity eligible persons or equity
21    eligible contractors by 2030. The Agency shall propose a
22    schedule of percentage increases to the minimum equity
23    standards in its draft revised renewable energy resources
24    procurement plan submitted to the Commission for approval
25    pursuant to paragraph (5) of subsection (b) of Section
26    16-111.5 of the Public Utilities Act. In determining these

 

 

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1    annual increases, the Agency shall have the discretion to
2    establish different minimum equity standards for different
3    types of procurements and different regions of the State
4    if the Agency finds that doing so will further the
5    purposes of this subsection (c-10). The proposed schedule
6    of annual increases shall be revisited and updated on an
7    annual basis. Revisions shall be developed with
8    stakeholder input, including from equity eligible persons,
9    equity eligible contractors, clean energy industry
10    representatives, and community-based organizations that
11    work with such persons and contractors.
12            (A) At the start of each delivery year, the Agency
13        shall require a compliance plan from each entity
14        participating in a procurement program of subsection
15        (c) of this Section that demonstrates how they will
16        achieve compliance with the minimum equity standard
17        percentage for work completed in that delivery year.
18        If an entity applies for its approved vendor or
19        designee status between delivery years, the Agency
20        shall require a compliance plan at the time of
21        application.
22            (B) Halfway through each delivery year, the Agency
23        shall require each entity participating in a
24        procurement program to confirm that it will achieve
25        compliance in that delivery year, when applicable. The
26        Agency may offer corrective action plans to entities

 

 

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1        that are not on track to achieve compliance.
2            (C) At the end of each delivery year, each entity
3        participating and completing work in that delivery
4        year in a procurement program of subsection (c) shall
5        submit a report to the Agency that demonstrates how it
6        achieved compliance with the minimum equity standards
7        percentage for that delivery year.
8            (D) The Agency shall prohibit participation in
9        procurement programs by an approved vendor or
10        designee, as applicable, or entities with which an
11        approved vendor or designee, as applicable, shares a
12        common parent company if an approved vendor or
13        designee, as applicable, failed to meet the minimum
14        equity standards for the prior delivery year. Waivers
15        approved for lack of equity eligible persons or equity
16        eligible contractors in a geographic area of a project
17        shall not count against the approved vendor or
18        designee. The Agency shall offer a corrective action
19        plan for any such entities to assist them in obtaining
20        compliance and shall allow continued access to
21        procurement programs upon an approved vendor or
22        designee demonstrating compliance.
23            (E) The Agency shall pursue efficiencies achieved
24        by combining with other approved vendor or designee
25        reporting.
26        (2) Equity accountability system within the Adjustable

 

 

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1    Block program. The equity category described in item (vi)
2    of subparagraph (K) of subsection (c) is only available to
3    applicants that can demonstrate Equity Eligible Future
4    Certification or Equity Eligible Contractor Certification
5    for their project or portfolio of projects. The Agency
6    shall create a system for tracking and verifying Equitable
7    Energy Future Certifications. Equitable Energy Future
8    Certification can be earned by demonstrating that at least
9    50% of the project workforce, or other appropriate
10    workforce measure as determined by the Agency where
11    certification is on a non-project basis, is done by equity
12    eligible contractors or equity eligible persons.
13        (3) Equity accountability system within competitive
14    procurements. Through its long-term renewable resources
15    procurement plan, the Agency shall develop requirements
16    for ensuring that competitive procurement processes,
17    including utility-scale solar, utility-scale wind, and
18    brownfield site photovoltaic projects, advance the equity
19    goals of this subsection (c-10). Subject to Commission
20    approval, the Agency shall develop bid application
21    requirements and a bid evaluation methodology for ensuring
22    that utilization of equity eligible contractors, whether
23    as bidders or as participants on project development, is
24    optimized, including requiring that winning or successful
25    applicants for utility-scale projects are or will partner
26    with equity eligible contractors and giving preference to

 

 

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1    bids through which a higher portion of contract value
2    flows to equity eligible contractors. To the extent
3    practicable, entities participating in competitive
4    procurements shall also be required to meet all the equity
5    accountability requirements for approved vendors and their
6    designees under this subsection (c-10). In developing
7    these requirements, the Agency shall also consider whether
8    equity goals can be further advanced through additional
9    measures.
10        (4) In the first revision to the long-term renewable
11    energy resources procurement plan and each revision
12    thereafter, the Agency shall include the following:
13            (A) The current status and number of equity
14        eligible contractors listed in the Energy Workforce
15        Equity Database designed in subsection (c-25),
16        including the number of equity eligible contractors
17        with current certifications as issued by the Agency.
18            (B) A mechanism for measuring, tracking, and
19        reporting project workforce at the approved vendor or
20        designee level, as applicable, which shall include a
21        measurement methodology and records to be made
22        available for audit by the Agency or the Program
23        Administrator.
24            (C) A program for approved vendors, designees,
25        eligible persons, and equity eligible contractors to
26        receive trainings, guidance, and other support from

 

 

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1        the Agency or its designee regarding the equity
2        category outlined in item (vi) of subparagraph (K) of
3        paragraph (1) of subsection (c) and in meeting the
4        minimum equity standards of this subsection (c-10).
5            (D) A process for certifying equity eligible
6        contractors and equity eligible persons. The
7        certification process shall coordinate with the Energy
8        Workforce Equity Database set forth in subsection
9        (c-25).
10            (E) An application for waiver of the minimum
11        equity standards of this subsection, which the Agency
12        shall have the discretion to grant in rare
13        circumstances. The Agency may grant such a waiver
14        where the applicant provides evidence of significant
15        efforts toward meeting the minimum equity commitment,
16        including: use of the Energy Workforce Equity
17        Database; efforts to hire or contract with entities
18        that hire eligible persons; and efforts to establish
19        contracting relationships with eligible contractors.
20        The Agency shall support applicants in understanding
21        the Energy Workforce Equity Database and other
22        resources for pursuing compliance of the minimum
23        equity standards. Waivers shall be project-specific,
24        unless the Agency deems it necessary to grant a waiver
25        across a portfolio of projects, and in effect for no
26        longer than one year. Any waiver extension or

 

 

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1        subsequent waiver request from an applicant shall be
2        subject to the requirements of this Section and shall
3        specify efforts made to reach compliance. When
4        considering whether to grant a waiver, and to what
5        extent, the Agency shall consider the degree to which
6        similarly situated applicants have been able to meet
7        these minimum equity commitments. For repeated waiver
8        requests for specific lack of eligible persons or
9        eligible contractors available, the Agency shall make
10        recommendations to target recruitment to add such
11        eligible persons or eligible contractors to the
12        database.
13        (5) The Agency shall collect information about work on
14    projects or portfolios of projects subject to these
15    minimum equity standards to ensure compliance with this
16    subsection (c-10). Reporting in furtherance of this
17    requirement may be combined with other annual reporting
18    requirements. Such reporting shall include proof of
19    certification of each equity eligible contractor or equity
20    eligible person during the applicable time period.
21        (6) The Agency shall keep confidential all information
22    and communication that provides private or personal
23    information.
24        (7) Modifications to the equity accountability system.
25    As part of the update of the long-term renewable resources
26    procurement plan to be initiated in 2023, or sooner if the

 

 

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1    Agency deems necessary, the Agency shall determine the
2    extent to which the equity accountability system described
3    in this subsection (c-10) has advanced the goals of this
4    amendatory Act of the 102nd General Assembly, including
5    through the inclusion of equity eligible persons, equity
6    eligible contractors, and Equitable Energy Future
7    Certification in renewable energy credit projects. If the
8    Agency finds that the equity accountability system has
9    failed to meet those goals to its fullest potential, the
10    Agency may revise the following criteria for future Agency
11    procurements: (A) the percentage of project workforce, or
12    other appropriate workforce measure, certified as equity
13    eligible persons or equity eligible contractors, as
14    required to meet the thresholds for Equitable Energy
15    Future Certification; (B) definitions for equity
16    investment eligible persons and equity investment eligible
17    community; and (C) such other modifications necessary to
18    advance the goals of this amendatory Act of the 102nd
19    General Assembly effectively. Such revised criteria may
20    also establish distinct equity accountability systems for
21    different types of procurements or different regions of
22    the State if the Agency finds that doing so will further
23    the purposes of such programs. Revisions shall be
24    developed with stakeholder input, including from equity
25    eligible persons, equity eligible contractors, and
26    community-based organizations that work with such persons

 

 

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1    and contractors.
2    (c-15) Racial discrimination elimination powers and
3process.
4        (1) Purpose. It is the purpose of this subsection to
5    empower the Agency and other State actors to remedy racial
6    discrimination in Illinois' clean energy economy as
7    effectively and expediently as possible, including through
8    the use of race-conscious remedies, such as race-conscious
9    contracting and hiring goals, as consistent with State and
10    federal law.
11        (2) Racial disparity and discrimination review
12    process.
13            (A) Within one year after awarding contracts using
14        the equity actions processes established in this
15        Section, the Agency shall publish a report evaluating
16        the effectiveness of the equity actions point criteria
17        of this Section in increasing participation of equity
18        eligible persons and equity eligible contractors. The
19        report shall disaggregate participating workers and
20        contractors by race and ethnicity. The report shall be
21        forwarded to the Governor, the General Assembly, and
22        the Illinois Commerce Commission and be made available
23        to the public.
24            (B) As soon as is practicable thereafter, the
25        Agency, in consultation with the Department of
26        Commerce and Economic Opportunity, Department of

 

 

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1        Labor, and other agencies that may be relevant, shall
2        commission and publish a disparity and availability
3        study that measures the presence and impact of
4        discrimination on minority businesses and workers in
5        Illinois' clean energy economy. The Agency may hire
6        consultants and experts to conduct the disparity and
7        availability study, with the retention of those
8        consultants and experts exempt from the requirements
9        of Section 20-10 of the Illinois Procurement Code. The
10        Illinois Power Agency shall forward a copy of its
11        findings and recommendations to the Governor, the
12        General Assembly, and the Illinois Commerce
13        Commission. If the disparity and availability study
14        establishes a strong basis in evidence that there is
15        discrimination in Illinois' clean energy economy, the
16        Agency, Department of Commerce and Economic
17        Opportunity, Department of Labor, Department of
18        Corrections, and other appropriate agencies shall take
19        appropriate remedial actions, including race-conscious
20        remedial actions as consistent with State and federal
21        law, to effectively remedy this discrimination. Such
22        remedies may include modification of the equity
23        accountability system as described in subsection
24        (c-10).
25    (c-20) Program data collection.
26        (1) Purpose. Data collection, data analysis, and

 

 

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1    reporting are critical to ensure that the benefits of the
2    clean energy economy provided to Illinois residents and
3    businesses are equitably distributed across the State. The
4    Agency shall collect data from program applicants in order
5    to track and improve equitable distribution of benefits
6    across Illinois communities for all procurements the
7    Agency conducts. The Agency shall use this data to, among
8    other things, measure any potential impact of racial
9    discrimination on the distribution of benefits and provide
10    information necessary to correct any discrimination
11    through methods consistent with State and federal law.
12        (2) Agency collection of program data. The Agency
13    shall collect demographic and geographic data for each
14    entity awarded contracts under any Agency-administered
15    program.
16        (3) Required information to be collected. The Agency
17    shall collect the following information from applicants
18    and program participants where applicable:
19            (A) demographic information, including racial or
20        ethnic identity for real persons employed, contracted,
21        or subcontracted through the program and owners of
22        businesses or entities that apply to receive renewable
23        energy credits from the Agency;
24            (B) geographic location of the residency of real
25        persons employed, contracted, or subcontracted through
26        the program and geographic location of the

 

 

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1        headquarters of the business or entity that applies to
2        receive renewable energy credits from the Agency; and
3            (C) any other information the Agency determines is
4        necessary for the purpose of achieving the purpose of
5        this subsection.
6        (4) Publication of collected information. The Agency
7    shall publish, at least annually, information on the
8    demographics of program participants on an aggregate
9    basis.
10        (5) Nothing in this subsection shall be interpreted to
11    limit the authority of the Agency, or other agency or
12    department of the State, to require or collect demographic
13    information from applicants of other State programs.
14    (c-25) Energy Workforce Equity Database.
15        (1) The Agency, in consultation with the Department of
16    Commerce and Economic Opportunity, shall create an Energy
17    Workforce Equity Database, and may contract with a third
18    party to do so ("database program administrator"). If the
19    Department decides to contract with a third party, that
20    third party shall be exempt from the requirements of
21    Section 20-10 of the Illinois Procurement Code. The Energy
22    Workforce Equity Database shall be a searchable database
23    of suppliers, vendors, and subcontractors for clean energy
24    industries that is:
25            (A) publicly accessible;
26            (B) easy for people to find and use;

 

 

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1            (C) organized by company specialty or field;
2            (D) region-specific; and
3            (E) populated with information including, but not
4        limited to, contacts for suppliers, vendors, or
5        subcontractors who are minority and women-owned
6        business enterprise certified or who participate or
7        have participated in any of the programs described in
8        this Act.
9        (2) The Agency shall create an easily accessible,
10    public facing online tool using the database information
11    that includes, at a minimum, the following:
12            (A) a map of environmental justice and equity
13        investment eligible communities;
14            (B) job postings and recruiting opportunities;
15            (C) a means by which recruiting clean energy
16        companies can find and interact with current or former
17        participants of clean energy workforce training
18        programs;
19            (D) information on workforce training service
20        providers and training opportunities available to
21        prospective workers;
22            (E) renewable energy company diversity reporting;
23            (F) a list of equity eligible contractors with
24        their contact information, types of work performed,
25        and locations worked in;
26            (G) reporting on outcomes of the programs

 

 

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1        described in the workforce programs of the Energy
2        Transition Act, including information such as, but not
3        limited to, retention rate, graduation rate, and
4        placement rates of trainees; and
5            (H) information about the Jobs and Environmental
6        Justice Grant Program, the Clean Energy Jobs and
7        Justice Fund, and other sources of capital.
8        (3) The Agency shall ensure the database is regularly
9    updated to ensure information is current and shall
10    coordinate with the Department of Commerce and Economic
11    Opportunity to ensure that it includes information on
12    individuals and entities that are or have participated in
13    the Clean Jobs Workforce Network Program, Clean Energy
14    Contractor Incubator Program, Returning Residents Clean
15    Jobs Training Program, or Clean Energy Primes Contractor
16    Accelerator Program.
17    (c-30) Enforcement of equity accountability system.
18        (1) Enforcement of minimum equity standards. All
19    entities seeking renewable energy credits must submit an
20    annual report to demonstrate compliance with each of the
21    equity commitments required under subsection (c-10). If
22    the Agency concludes the entity has not met or maintained
23    its minimum equity standards required under the applicable
24    subparagraphs under subsection (c-10), the Agency shall
25    deny the entity's ability to participate in procurement
26    programs in subsection (c), including by withholding

 

 

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1    approved vendor or designee status. The Agency may require
2    the entity to enter into a corrective action plan. An
3    entity that is not recertified for failing to meet
4    required equity actions in subparagraph (c-10) may reapply
5    once they have a corrective action plan and achieve
6    compliance with the minimum equity standards.
7        (2) Enforcement of Equitable Energy Future
8    Certification. All entities using Equitable Energy Future
9    Certification in applying for renewable energy credit
10    procurements must submit a report at project energization
11    demonstrating that they met the required Equitable Energy
12    Future Certification thresholds. The Agency shall
13    determine an appropriate reporting frequency for entities
14    that are granted Equitable Energy Future Certification for
15    a portfolio of projects. The Agency may impose penalties
16    on entities that fail to meet the Equitable Energy Future
17    Certification thresholds, which may include, but are not
18    limited to: reduction in final REC price, contributions to
19    the Clean Jobs Workforce Hubs, and suspension from using
20    Equitable Energy Future Certification for future projects
21    or a portfolio of projects.
22    (d) Clean coal portfolio standard.
23        (1) The procurement plans shall include electricity
24    generated using clean coal. Each utility shall enter into
25    one or more sourcing agreements with the initial clean
26    coal facility, as provided in paragraph (3) of this

 

 

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1    subsection (d), covering electricity generated by the
2    initial clean coal facility representing at least 5% of
3    each utility's total supply to serve the load of eligible
4    retail customers in 2015 and each year thereafter, as
5    described in paragraph (3) of this subsection (d), subject
6    to the limits specified in paragraph (2) of this
7    subsection (d). It is the goal of the State that by January
8    1, 2025, 25% of the electricity used in the State shall be
9    generated by cost-effective clean coal facilities. For
10    purposes of this subsection (d), "cost-effective" means
11    that the expenditures pursuant to such sourcing agreements
12    do not cause the limit stated in paragraph (2) of this
13    subsection (d) to be exceeded and do not exceed cost-based
14    benchmarks, which shall be developed to assess all
15    expenditures pursuant to such sourcing agreements covering
16    electricity generated by clean coal facilities, other than
17    the initial clean coal facility, by the procurement
18    administrator, in consultation with the Commission staff,
19    Agency staff, and the procurement monitor and shall be
20    subject to Commission review and approval.
21        A utility party to a sourcing agreement shall
22    immediately retire any emission credits that it receives
23    in connection with the electricity covered by such
24    agreement.
25        Utilities shall maintain adequate records documenting
26    the purchases under the sourcing agreement to comply with

 

 

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1    this subsection (d) and shall file an accounting with the
2    load forecast that must be filed with the Agency by July 15
3    of each year, in accordance with subsection (d) of Section
4    16-111.5 of the Public Utilities Act.
5        A utility shall be deemed to have complied with the
6    clean coal portfolio standard specified in this subsection
7    (d) if the utility enters into a sourcing agreement as
8    required by this subsection (d).
9        (2) For purposes of this subsection (d), the required
10    execution of sourcing agreements with the initial clean
11    coal facility for a particular year shall be measured as a
12    percentage of the actual amount of electricity
13    (megawatt-hours) supplied by the electric utility to
14    eligible retail customers in the planning year ending
15    immediately prior to the agreement's execution. For
16    purposes of this subsection (d), the amount paid per
17    kilowatthour means the total amount paid for electric
18    service expressed on a per kilowatthour basis. For
19    purposes of this subsection (d), the total amount paid for
20    electric service includes without limitation amounts paid
21    for supply, transmission, distribution, surcharges and
22    add-on taxes.
23        Notwithstanding the requirements of this subsection
24    (d), the total amount paid under sourcing agreements with
25    clean coal facilities pursuant to the procurement plan for
26    any given year shall be reduced by an amount necessary to

 

 

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

 

 

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1        estimated average net increase due to the cost of
2        these resources included in the amounts paid by
3        eligible retail customers in connection with electric
4        service to no more than the greater of (i) 2.015% of
5        the amount paid per kilowatthour by those customers
6        during the year ending May 31, 2009 or (ii) the
7        incremental amount per kilowatthour paid for these
8        resources in 2013. These requirements may be altered
9        only as provided by statute.
10        No later than June 30, 2015, the Commission shall
11    review the limitation on the total amount paid under
12    sourcing agreements, if any, with clean coal facilities
13    pursuant to this subsection (d) and report to the General
14    Assembly its findings as to whether that limitation unduly
15    constrains the amount of electricity generated by
16    cost-effective clean coal facilities that is covered by
17    sourcing agreements.
18        (3) Initial clean coal facility. In order to promote
19    development of clean coal facilities in Illinois, each
20    electric utility subject to this Section shall execute a
21    sourcing agreement to source electricity from a proposed
22    clean coal facility in Illinois (the "initial clean coal
23    facility") that will have a nameplate capacity of at least
24    500 MW when commercial operation commences, that has a
25    final Clean Air Act permit on June 1, 2009 (the effective
26    date of Public Act 95-1027), and that will meet the

 

 

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1    definition of clean coal facility in Section 1-10 of this
2    Act when commercial operation commences. The sourcing
3    agreements with this initial clean coal facility shall be
4    subject to both approval of the initial clean coal
5    facility by the General Assembly and satisfaction of the
6    requirements of paragraph (4) of this subsection (d) and
7    shall be executed within 90 days after any such approval
8    by the General Assembly. The Agency and the Commission
9    shall have authority to inspect all books and records
10    associated with the initial clean coal facility during the
11    term of such a sourcing agreement. A utility's sourcing
12    agreement for electricity produced by the initial clean
13    coal facility shall include:
14            (A) a formula contractual price (the "contract
15        price") approved pursuant to paragraph (4) of this
16        subsection (d), which shall:
17                (i) be determined using a cost of service
18            methodology employing either a level or deferred
19            capital recovery component, based on a capital
20            structure consisting of 45% equity and 55% debt,
21            and a return on equity as may be approved by the
22            Federal Energy Regulatory Commission, which in any
23            case may not exceed the lower of 11.5% or the rate
24            of return approved by the General Assembly
25            pursuant to paragraph (4) of this subsection (d);
26            and

 

 

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1                (ii) provide that all miscellaneous net
2            revenue, including but not limited to net revenue
3            from the sale of emission allowances, if any,
4            substitute natural gas, if any, grants or other
5            support provided by the State of Illinois or the
6            United States Government, firm transmission
7            rights, if any, by-products produced by the
8            facility, energy or capacity derived from the
9            facility and not covered by a sourcing agreement
10            pursuant to paragraph (3) of this subsection (d)
11            or item (5) of subsection (d) of Section 16-115 of
12            the Public Utilities Act, whether generated from
13            the synthesis gas derived from coal, from SNG, or
14            from natural gas, shall be credited against the
15            revenue requirement for this initial clean coal
16            facility;
17            (B) power purchase provisions, which shall:
18                (i) provide that the utility party to such
19            sourcing agreement shall pay the contract price
20            for electricity delivered under such sourcing
21            agreement;
22                (ii) require delivery of electricity to the
23            regional transmission organization market of the
24            utility that is party to such sourcing agreement;
25                (iii) require the utility party to such
26            sourcing agreement to buy from the initial clean

 

 

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

 

 

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1            facility in each hour with respect to an amount of
2            energy equal to all clean coal energy made
3            available from the initial clean coal facility
4            during such hour times a fraction, the numerator
5            of which is such utility's retail market sales of
6            electricity (expressed in kilowatthours sold) in
7            the utility's service territory in the State
8            during the prior calendar month and the
9            denominator of which is the total retail market
10            sales of electricity (expressed in kilowatthours
11            sold) in the State by utilities during such prior
12            month and the sales of electricity (expressed in
13            kilowatthours sold) in the State by alternative
14            retail electric suppliers during such prior month
15            that are subject to the requirements of this
16            subsection (d) and paragraph (5) of subsection (d)
17            of Section 16-115 of the Public Utilities Act,
18            provided that the amount paid by the utility in
19            any year will be limited by paragraph (2) of this
20            subsection (d);
21                (ii) provide that the utility's payment
22            obligation in respect of the quantity of
23            electricity determined pursuant to the preceding
24            clause (i) shall be limited to an amount equal to
25            (1) the difference between the contract price
26            determined pursuant to subparagraph (A) of

 

 

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1            paragraph (3) of this subsection (d) and the
2            day-ahead price for electricity delivered to the
3            regional transmission organization market of the
4            utility that is party to such sourcing agreement
5            (or any successor delivery point at which such
6            utility's supply obligations are financially
7            settled on an hourly basis) (the "reference
8            price") on the day preceding the day on which the
9            electricity is delivered to the initial clean coal
10            facility busbar, multiplied by (2) the quantity of
11            electricity determined pursuant to the preceding
12            clause (i); and
13                (iii) not require the utility to take physical
14            delivery of the electricity produced by the
15            facility;
16            (D) general provisions, which shall:
17                (i) specify a term of no more than 30 years,
18            commencing on the commercial operation date of the
19            facility;
20                (ii) provide that utilities shall maintain
21            adequate records documenting purchases under the
22            sourcing agreements entered into to comply with
23            this subsection (d) and shall file an accounting
24            with the load forecast that must be filed with the
25            Agency by July 15 of each year, in accordance with
26            subsection (d) of Section 16-111.5 of the Public

 

 

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1            Utilities Act;
2                (iii) provide that all costs associated with
3            the initial clean coal facility will be
4            periodically reported to the Federal Energy
5            Regulatory Commission and to purchasers in
6            accordance with applicable laws governing
7            cost-based wholesale power contracts;
8                (iv) permit the Illinois Power Agency to
9            assume ownership of the initial clean coal
10            facility, without monetary consideration and
11            otherwise on reasonable terms acceptable to the
12            Agency, if the Agency so requests no less than 3
13            years prior to the end of the stated contract
14            term;
15                (v) require the owner of the initial clean
16            coal facility to provide documentation to the
17            Commission each year, starting in the facility's
18            first year of commercial operation, accurately
19            reporting the quantity of carbon emissions from
20            the facility that have been captured and
21            sequestered and report any quantities of carbon
22            released from the site or sites at which carbon
23            emissions were sequestered in prior years, based
24            on continuous monitoring of such sites. If, in any
25            year after the first year of commercial operation,
26            the owner of the facility fails to demonstrate

 

 

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1            that the initial clean coal facility captured and
2            sequestered at least 50% of the total carbon
3            emissions that the facility would otherwise emit
4            or that sequestration of emissions from prior
5            years has failed, resulting in the release of
6            carbon dioxide into the atmosphere, the owner of
7            the facility must offset excess emissions. Any
8            such carbon offsets must be permanent, additional,
9            verifiable, real, located within the State of
10            Illinois, and legally and practicably enforceable.
11            The cost of such offsets for the facility that are
12            not recoverable shall not exceed $15 million in
13            any given year. No costs of any such purchases of
14            carbon offsets may be recovered from a utility or
15            its customers. All carbon offsets purchased for
16            this purpose and any carbon emission credits
17            associated with sequestration of carbon from the
18            facility must be permanently retired. The initial
19            clean coal facility shall not forfeit its
20            designation as a clean coal facility if the
21            facility fails to fully comply with the applicable
22            carbon sequestration requirements in any given
23            year, provided the requisite offsets are
24            purchased. However, the Attorney General, on
25            behalf of the People of the State of Illinois, may
26            specifically enforce the facility's sequestration

 

 

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1            requirement and the other terms of this contract
2            provision. Compliance with the sequestration
3            requirements and offset purchase requirements
4            specified in paragraph (3) of this subsection (d)
5            shall be reviewed annually by an independent
6            expert retained by the owner of the initial clean
7            coal facility, with the advance written approval
8            of the Attorney General. The Commission may, in
9            the course of the review specified in item (vii),
10            reduce the allowable return on equity for the
11            facility if the facility willfully fails to comply
12            with the carbon capture and sequestration
13            requirements set forth in this item (v);
14                (vi) include limits on, and accordingly
15            provide for modification of, the amount the
16            utility is required to source under the sourcing
17            agreement consistent with paragraph (2) of this
18            subsection (d);
19                (vii) require Commission review: (1) to
20            determine the justness, reasonableness, and
21            prudence of the inputs to the formula referenced
22            in subparagraphs (A)(i) through (A)(iii) of
23            paragraph (3) of this subsection (d), prior to an
24            adjustment in those inputs including, without
25            limitation, the capital structure and return on
26            equity, fuel costs, and other operations and

 

 

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1            maintenance costs and (2) to approve the costs to
2            be passed through to customers under the sourcing
3            agreement by which the utility satisfies its
4            statutory obligations. Commission review shall
5            occur no less than every 3 years, regardless of
6            whether any adjustments have been proposed, and
7            shall be completed within 9 months;
8                (viii) limit the utility's obligation to such
9            amount as the utility is allowed to recover
10            through tariffs filed with the Commission,
11            provided that neither the clean coal facility nor
12            the utility waives any right to assert federal
13            pre-emption or any other argument in response to a
14            purported disallowance of recovery costs;
15                (ix) limit the utility's or alternative retail
16            electric supplier's obligation to incur any
17            liability until such time as the facility is in
18            commercial operation and generating power and
19            energy and such power and energy is being
20            delivered to the facility busbar;
21                (x) provide that the owner or owners of the
22            initial clean coal facility, which is the
23            counterparty to such sourcing agreement, shall
24            have the right from time to time to elect whether
25            the obligations of the utility party thereto shall
26            be governed by the power purchase provisions or

 

 

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1            the contract for differences provisions;
2                (xi) append documentation showing that the
3            formula rate and contract, insofar as they relate
4            to the power purchase provisions, have been
5            approved by the Federal Energy Regulatory
6            Commission pursuant to Section 205 of the Federal
7            Power Act;
8                (xii) provide that any changes to the terms of
9            the contract, insofar as such changes relate to
10            the power purchase provisions, are subject to
11            review under the public interest standard applied
12            by the Federal Energy Regulatory Commission
13            pursuant to Sections 205 and 206 of the Federal
14            Power Act; and
15                (xiii) conform with customary lender
16            requirements in power purchase agreements used as
17            the basis for financing non-utility generators.
18        (4) Effective date of sourcing agreements with the
19    initial clean coal facility. Any proposed sourcing
20    agreement with the initial clean coal facility shall not
21    become effective unless the following reports are prepared
22    and submitted and authorizations and approvals obtained:
23            (i) Facility cost report. The owner of the initial
24        clean coal facility shall submit to the Commission,
25        the Agency, and the General Assembly a front-end
26        engineering and design study, a facility cost report,

 

 

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1        method of financing (including but not limited to
2        structure and associated costs), and an operating and
3        maintenance cost quote for the facility (collectively
4        "facility cost report"), which shall be prepared in
5        accordance with the requirements of this paragraph (4)
6        of subsection (d) of this Section, and shall provide
7        the Commission and the Agency access to the work
8        papers, relied upon documents, and any other backup
9        documentation related to the facility cost report.
10            (ii) Commission report. Within 6 months following
11        receipt of the facility cost report, the Commission,
12        in consultation with the Agency, shall submit a report
13        to the General Assembly setting forth its analysis of
14        the facility cost report. Such report shall include,
15        but not be limited to, a comparison of the costs
16        associated with electricity generated by the initial
17        clean coal facility to the costs associated with
18        electricity generated by other types of generation
19        facilities, an analysis of the rate impacts on
20        residential and small business customers over the life
21        of the sourcing agreements, and an analysis of the
22        likelihood that the initial clean coal facility will
23        commence commercial operation by and be delivering
24        power to the facility's busbar by 2016. To assist in
25        the preparation of its report, the Commission, in
26        consultation with the Agency, may hire one or more

 

 

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1        experts or consultants, the costs of which shall be
2        paid for by the owner of the initial clean coal
3        facility. The Commission and Agency may begin the
4        process of selecting such experts or consultants prior
5        to receipt of the facility cost report.
6            (iii) General Assembly approval. The proposed
7        sourcing agreements shall not take effect unless,
8        based on the facility cost report and the Commission's
9        report, the General Assembly enacts authorizing
10        legislation approving (A) the projected price, stated
11        in cents per kilowatthour, to be charged for
12        electricity generated by the initial clean coal
13        facility, (B) the projected impact on residential and
14        small business customers' bills over the life of the
15        sourcing agreements, and (C) the maximum allowable
16        return on equity for the project; and
17            (iv) Commission review. If the General Assembly
18        enacts authorizing legislation pursuant to
19        subparagraph (iii) approving a sourcing agreement, the
20        Commission shall, within 90 days of such enactment,
21        complete a review of such sourcing agreement. During
22        such time period, the Commission shall implement any
23        directive of the General Assembly, resolve any
24        disputes between the parties to the sourcing agreement
25        concerning the terms of such agreement, approve the
26        form of such agreement, and issue an order finding

 

 

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1        that the sourcing agreement is prudent and reasonable.
2        The facility cost report shall be prepared as follows:
3            (A) The facility cost report shall be prepared by
4        duly licensed engineering and construction firms
5        detailing the estimated capital costs payable to one
6        or more contractors or suppliers for the engineering,
7        procurement and construction of the components
8        comprising the initial clean coal facility and the
9        estimated costs of operation and maintenance of the
10        facility. The facility cost report shall include:
11                (i) an estimate of the capital cost of the
12            core plant based on one or more front end
13            engineering and design studies for the
14            gasification island and related facilities. The
15            core plant shall include all civil, structural,
16            mechanical, electrical, control, and safety
17            systems.
18                (ii) an estimate of the capital cost of the
19            balance of the plant, including any capital costs
20            associated with sequestration of carbon dioxide
21            emissions and all interconnects and interfaces
22            required to operate the facility, such as
23            transmission of electricity, construction or
24            backfeed power supply, pipelines to transport
25            substitute natural gas or carbon dioxide, potable
26            water supply, natural gas supply, water supply,

 

 

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

 

 

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

 

 

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1        (5) Re-powering and retrofitting coal-fired power
2    plants previously owned by Illinois utilities to qualify
3    as clean coal facilities. During the 2009 procurement
4    planning process and thereafter, the Agency and the
5    Commission shall consider sourcing agreements covering
6    electricity generated by power plants that were previously
7    owned by Illinois utilities and that have been or will be
8    converted into clean coal facilities, as defined by
9    Section 1-10 of this Act. Pursuant to such procurement
10    planning process, the owners of such facilities may
11    propose to the Agency sourcing agreements with utilities
12    and alternative retail electric suppliers required to
13    comply with subsection (d) of this Section and item (5) of
14    subsection (d) of Section 16-115 of the Public Utilities
15    Act, covering electricity generated by such facilities. In
16    the case of sourcing agreements that are power purchase
17    agreements, the contract price for electricity sales shall
18    be established on a cost of service basis. In the case of
19    sourcing agreements that are contracts for differences,
20    the contract price from which the reference price is
21    subtracted shall be established on a cost of service
22    basis. The Agency and the Commission may approve any such
23    utility sourcing agreements that do not exceed cost-based
24    benchmarks developed by the procurement administrator, in
25    consultation with the Commission staff, Agency staff and
26    the procurement monitor, subject to Commission review and

 

 

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1    approval. The Commission shall have authority to inspect
2    all books and records associated with these clean coal
3    facilities during the term of any such contract.
4        (6) Costs incurred under this subsection (d) or
5    pursuant to a contract entered into under this subsection
6    (d) shall be deemed prudently incurred and reasonable in
7    amount and the electric utility shall be entitled to full
8    cost recovery pursuant to the tariffs filed with the
9    Commission.
10    (d-5) Zero emission standard.
11        (1) Beginning with the delivery year commencing on
12    June 1, 2017, the Agency shall, for electric utilities
13    that serve at least 100,000 retail customers in this
14    State, procure contracts with zero emission facilities
15    that are reasonably capable of generating cost-effective
16    zero emission credits in an amount approximately equal to
17    16% of the actual amount of electricity delivered by each
18    electric utility to retail customers in the State during
19    calendar year 2014. For an electric utility serving fewer
20    than 100,000 retail customers in this State that
21    requested, under Section 16-111.5 of the Public Utilities
22    Act, that the Agency procure power and energy for all or a
23    portion of the utility's Illinois load for the delivery
24    year commencing June 1, 2016, the Agency shall procure
25    contracts with zero emission facilities that are
26    reasonably capable of generating cost-effective zero

 

 

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

 

 

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

 

 

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1            the zero emission credits to be procured in the
2            procurement.
3            The information described in item (iii) of this
4        subparagraph (A) may be submitted on a confidential
5        basis and shall be treated and maintained by the
6        Agency, the procurement administrator, and the
7        Commission as confidential and proprietary and exempt
8        from disclosure under subparagraphs (a) and (g) of
9        paragraph (1) of Section 7 of the Freedom of
10        Information Act. The Office of Attorney General shall
11        have access to, and maintain the confidentiality of,
12        such information pursuant to Section 6.5 of the
13        Attorney General Act.
14            (B) The price for each zero emission credit
15        procured under this subsection (d-5) for each delivery
16        year shall be in an amount that equals the Social Cost
17        of Carbon, expressed on a price per megawatthour
18        basis. However, to ensure that the procurement remains
19        affordable to retail customers in this State if
20        electricity prices increase, the price in an
21        applicable delivery year shall be reduced below the
22        Social Cost of Carbon by the amount ("Price
23        Adjustment") by which the market price index for the
24        applicable delivery year exceeds the baseline market
25        price index for the consecutive 12-month period ending
26        May 31, 2016. If the Price Adjustment is greater than

 

 

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

 

 

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

 

 

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

 

 

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1                    determined in the resource auction
2                    administered by the Midcontinent
3                    Independent System Operator, Inc., in
4                    which the largest percentage of load
5                    cleared for Local Resource Zone 4, divided
6                    by 24 hours per day, and where such price
7                    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
19        the provisions of this paragraph (1) and shall provide
20        that winning bids shall be selected based on public
21        interest criteria that include, but are not limited
22        to, minimizing carbon dioxide emissions that result
23        from electricity consumed in Illinois and minimizing
24        sulfur 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
5        would cease to exist if the procurements were not
6        held, 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
15        the 98th General Assembly and paragraph (4) of
16        subsection (d) of this Section, as well as publicly
17        available analyses and studies performed by or for
18        regional transmission organizations that serve the
19        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
24        the date of posting to provide comment to the Agency on
25        the 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
11        with modification. For purposes of this subsection
12        (d-5), "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
4                    than one price, the average of the prices,
5                    paid 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; and
10                        (II) the price, or if there is more
11                    than one price, the average of the prices,
12                    paid for renewable energy credits from new
13                    utility-scale solar projects and
14                    brownfield site photovoltaic projects in
15                    the procurement events specified in item
16                    (ii) of subparagraph (G) of paragraph (1)
17                    of subsection (c) of this Section and,
18                    after January 1, 2015, renewable energy
19                    credits from photovoltaic distributed
20                    generation projects in procurement events
21                    held under subsection (c) of this Section.
22            Each utility shall enter into binding contractual
23        arrangements with the winning suppliers.
24            The procurement described in this subsection
25        (d-5), including, but not limited to, the execution of
26        all contracts procured, shall be completed no later

 

 

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1        than May 10, 2017. Based on the effective date of
2        Public Act 99-906, the Agency and Commission may, as
3        appropriate, modify the various dates and timelines
4        under this subparagraph and subparagraphs (C) and (D)
5        of this paragraph (1). The procurement and plan
6        approval processes required by this subsection (d-5)
7        shall be conducted in conjunction with the procurement
8        and plan approval processes required by subsection (c)
9        of this Section and Section 16-111.5 of the Public
10        Utilities Act, to the extent practicable.
11        Notwithstanding whether a procurement event is
12        conducted under Section 16-111.5 of the Public
13        Utilities Act, the Agency shall immediately initiate a
14        procurement process on June 1, 2017 (the effective
15        date of Public Act 99-906).
16            (D) Following the procurement event described in
17        this paragraph (1) and consistent with subparagraph
18        (B) of this paragraph (1), the Agency shall calculate
19        the payments to be made under each contract for the
20        next delivery year based on the market price index for
21        that delivery year. The Agency shall publish the
22        payment calculations no later than May 25, 2017 and
23        every May 25 thereafter.
24            (E) Notwithstanding the requirements of this
25        subsection (d-5), the contracts executed under this
26        subsection (d-5) shall provide that the zero emission

 

 

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

 

 

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

 

 

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1        docket in which the Commission approved the zero
2        emission standard procurement plan under subparagraph
3        (C) of this paragraph (1) and, after notice and
4        hearing, enter an order acknowledging the contract
5        termination election if such termination is consistent
6        with the provisions of this subsection (d-5).
7        (2) For purposes of this subsection (d-5), the amount
8    paid per kilowatthour means the total amount paid for
9    electric service expressed on a per kilowatthour basis.
10    For purposes of this subsection (d-5), the total amount
11    paid for electric service includes, without limitation,
12    amounts paid for supply, transmission, distribution,
13    surcharges, and add-on taxes.
14        Notwithstanding the requirements of this subsection
15    (d-5), the contracts executed under this subsection (d-5)
16    shall provide that the total of zero emission credits
17    procured under a procurement plan shall be subject to the
18    limitations of this paragraph (2). For each delivery year,
19    the contractual volume receiving payments in such year
20    shall be reduced for all retail customers based on the
21    amount necessary to limit the net increase that delivery
22    year to the costs of those credits included in the amounts
23    paid by eligible retail customers in connection with
24    electric service to no more than 1.65% of the amount paid
25    per kilowatthour by eligible retail customers during the
26    year ending May 31, 2009. The result of this computation

 

 

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

 

 

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1    credits procured under this subsection (d-5) and report to
2    the General Assembly its findings as to whether that
3    limitation unduly constrains the procurement of
4    cost-effective zero emission credits.
5        (3) Six years after the execution of a contract under
6    this subsection (d-5), the Agency shall determine whether
7    the actual zero emission credit payments received by the
8    supplier over the 6-year period exceed the Average ZEC
9    Payment. In addition, at the end of the term of a contract
10    executed under this subsection (d-5), or at the time, if
11    any, a zero emission facility's contract is terminated
12    under subparagraph (E) of paragraph (1) of this subsection
13    (d-5), then the Agency shall determine whether the actual
14    zero emission credit payments received by the supplier
15    over the term of the contract exceed the Average ZEC
16    Payment, after taking into account any amounts previously
17    credited back to the utility under this paragraph (3). If
18    the Agency determines that the actual zero emission credit
19    payments received by the supplier over the relevant period
20    exceed the Average ZEC Payment, then the supplier shall
21    credit the difference back to the utility. The amount of
22    the credit shall be remitted to the applicable electric
23    utility no later than 120 days after the Agency's
24    determination, which the utility shall reflect as a credit
25    on its retail customer bills as soon as practicable;
26    however, the credit remitted to the utility shall not

 

 

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1    exceed the total amount of payments received by the
2    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
7    be 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),
10    as 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
26    emission credits used to comply with the requirements of

 

 

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1    this subsection (d-5).
2        (6) Electric utilities shall be entitled to recover
3    all 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
6    Section 16-108 of the Public Utilities Act, and the
7    contracts executed under this subsection (d-5) shall
8    provide that the utilities' payment obligations under such
9    contracts shall be reduced if an adjustment is required
10    under subsection (m) of Section 16-108 of the Public
11    Utilities Act.
12        (7) This subsection (d-5) shall become inoperative on
13    January 1, 2028.
14    (d-10) Nuclear Plant Assistance; carbon mitigation
15credits.
16    (1) The General Assembly finds:
17        (A) The health, welfare, and prosperity of all
18    Illinois citizens require that the State of Illinois act
19    to avoid and not increase carbon emissions from electric
20    generation sources while continuing to ensure affordable,
21    stable, and reliable electricity to all citizens.
22        (B) Absent immediate action by the State to preserve
23    existing carbon-free energy resources, those resources may
24    retire, and the electric generation needs of Illinois'
25    retail customers may be met instead by facilities that
26    emit significant amounts of carbon pollution and other

 

 

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1    harmful air pollutants at a high social and economic cost
2    until Illinois is able to develop other forms of clean
3    energy.
4        (C) The General Assembly finds that nuclear power
5    generation is necessary for the State's transition to 100%
6    clean energy, and ensuring continued operation of nuclear
7    plants advances environmental and public health interests
8    through providing carbon-free electricity while reducing
9    the air pollution profile of the Illinois energy
10    generation fleet.
11        (D) The clean energy attributes of nuclear generation
12    facilities support the State in its efforts to achieve
13    100% clean energy.
14        (E) The State currently invests in various forms of
15    clean energy, including, but not limited to, renewable
16    energy, energy efficiency, and low-emission vehicles,
17    among others.
18        (F) The Environmental Protection Agency commissioned
19    an independent audit which provided a detailed assessment
20    of the financial condition of the Illinois nuclear fleet
21    to evaluate its financial viability and whether the
22    environmental benefits of such resources were at risk. The
23    report identified the risk of losing the environmental
24    benefits of several specific nuclear units. The report
25    also identified that the LaSalle County Generating Station
26    will continue to operate through 2026 and therefore is not

 

 

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1    eligible to participate in the carbon mitigation credit
2    program.
3        (G) Nuclear plants provide carbon-free energy, which
4    helps to avoid many health-related negative impacts for
5    Illinois residents.
6        (H) The procurement of carbon mitigation credits
7    representing the environmental benefits of carbon-free
8    generation will further the State's efforts at achieving
9    100% clean energy and decarbonizing the electricity sector
10    in a safe, reliable, and affordable manner. Further, the
11    procurement of carbon emission credits will enhance the
12    health and welfare of Illinois residents through decreased
13    reliance on more highly polluting generation.
14        (I) The General Assembly therefore finds it necessary
15    to establish carbon mitigation credits to ensure decreased
16    reliance on more carbon-intensive energy resources, for
17    transitioning to a fully decarbonized electricity sector,
18    and to help ensure health and welfare of the State's
19    residents.
20    (2) As used in this subsection:
21    "Baseline costs" means costs used to establish a customer
22protection cap that have been evaluated through an independent
23audit of a carbon-free energy resource conducted by the
24Environmental Protection Agency that evaluated projected
25annual costs for operation and maintenance expenses; fully
26allocated overhead costs, which shall be allocated using the

 

 

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1methodology developed by the Institute for Nuclear Power
2Operations; fuel expenditures; nonfuel capital expenditures;
3spent fuel expenditures; a return on working capital; the cost
4of operational and market risks that could be avoided by
5ceasing operation; and any other costs necessary for continued
6operations, provided that "necessary" means, for purposes of
7this definition, that the costs could reasonably be avoided
8only by ceasing operations of the carbon-free energy resource.
9    "Carbon mitigation credit" means a tradable credit that
10represents the carbon emission reduction attributes of one
11megawatt-hour of energy produced from a carbon-free energy
12resource.
13    "Carbon-free energy resource" means a generation facility
14that: (1) is fueled by nuclear power; and (2) is
15interconnected to PJM Interconnection, LLC.
16    (3) Procurement.
17        (A) Beginning with the delivery year commencing on
18    June 1, 2022, the Agency shall, for electric utilities
19    serving at least 3,000,000 retail customers in the State,
20    seek to procure contracts for no more than approximately
21    54,500,000 cost-effective carbon mitigation credits from
22    carbon-free energy resources because such credits are
23    necessary to support current levels of carbon-free energy
24    generation and ensure the State meets its carbon dioxide
25    emissions reduction goals. The Agency shall not make a
26    partial award of a contract for carbon mitigation credits

 

 

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1    covering a fractional amount of a carbon-free energy
2    resource's projected output.
3        (B) Each carbon-free energy resource that intends to
4    participate in a procurement shall be required to submit
5    to the Agency the following information for the resource
6    on or before the date established by the Agency:
7            (i) the in-service date and remaining useful life
8        of the carbon-free energy resource;
9            (ii) the amount of power generated annually for
10        each of the past 10 years, which shall be used to
11        determine the capability of each facility;
12            (iii) a commitment to be reflected in any contract
13        entered into pursuant to this subsection (d-10) to
14        continue operating the carbon-free energy resource at
15        a capacity factor of at least 88% annually on average
16        for the duration of the contract or contracts executed
17        under the procurement held under this subsection
18        (d-10), except in an instance described in
19        subparagraph (E) of paragraph (1) of subsection (d-5)
20        of this Section or made impracticable as a result of
21        compliance with law or regulation;
22            (iv) financial need and the risk of loss of the
23        environmental benefits of such resource, which shall
24        include the following information:
25                (I) the carbon-free energy resource's cost
26            projections, expressed on a per megawatt-hour

 

 

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1            basis, over the next 5 delivery years, which shall
2            include the following: operation and maintenance
3            expenses; fully allocated overhead costs, which
4            shall be allocated using the methodology developed
5            by the Institute for Nuclear Power Operations;
6            fuel expenditures; nonfuel capital expenditures;
7            spent fuel expenditures; a return on working
8            capital; the cost of operational and market risks
9            that could be avoided by ceasing operation; and
10            any other costs necessary for continued
11            operations, provided that "necessary" means, for
12            purposes of this subitem (I), that the costs could
13            reasonably be avoided only by ceasing operations
14            of the carbon-free energy resource; and
15                (II) the carbon-free energy resource's revenue
16            projections, including energy, capacity, ancillary
17            services, any other direct State support, known or
18            anticipated federal attribute credits, known or
19            anticipated tax credits, and any other direct
20            federal support.
21        The information described in this subparagraph (B) may
22    be submitted on a confidential basis and shall be treated
23    and maintained by the Agency, the procurement
24    administrator, and the Commission as confidential and
25    proprietary and exempt from disclosure under subparagraphs
26    (a) and (g) of paragraph (1) of Section 7 of the Freedom of

 

 

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1    Information Act. The Office of the Attorney General shall
2    have access to, and maintain the confidentiality of, such
3    information pursuant to Section 6.5 of the Attorney
4    General Act.
5        (C) The Agency shall solicit bids for the contracts
6    described in this subsection (d-10) from carbon-free
7    energy resources that have satisfied the requirements of
8    subparagraph (B) of this paragraph (3). The contracts
9    procured pursuant to a procurement event shall reflect,
10    and be subject to, the following terms, requirements, and
11    limitations:
12            (i) Contracts are for delivery of carbon
13        mitigation credits, and are not energy or capacity
14        sales contracts requiring physical delivery. Pursuant
15        to item (iii), contract payments shall fully deduct
16        the value of any monetized federal production tax
17        credits, credits issued pursuant to a federal clean
18        energy standard, and other federal credits if
19        applicable.
20            (ii) Contracts for carbon mitigation credits shall
21        commence with the delivery year beginning on June 1,
22        2022 and shall be for a term of 5 delivery years
23        concluding on May 31, 2027.
24            (iii) The price per carbon mitigation credit to be
25        paid under a contract for a given delivery year shall
26        be equal to an accepted bid price less the sum of:

 

 

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1                (I) one of the following energy price indices,
2            selected by the bidder at the time of the bid for
3            the term of the contract:
4                    (aa) the weighted-average hourly day-ahead
5                price for the applicable delivery year at the
6                busbar of all resources procured pursuant to
7                this subsection (d-10), weighted by actual
8                production from the resources; or
9                    (bb) the projected energy price for the
10                PJM Interconnection, LLC Northern Illinois Hub
11                for the applicable delivery year determined
12                according to subitem (aa) of item (iii) of
13                subparagraph (B) of paragraph (1) of
14                subsection (d-5).
15                (II) the Base Residual Auction Capacity Price
16            for the ComEd zone as determined by PJM
17            Interconnection, LLC, divided by 24 hours per day,
18            for the applicable delivery year for the first 3
19            delivery years, and then any subsequent delivery
20            years unless the PJM Interconnection, LLC applies
21            the Minimum Offer Price Rule to participating
22            carbon-free energy resources because they supply
23            carbon mitigation credits pursuant to this Section
24            at which time, upon notice by the carbon-free
25            energy resource to the Commission and subject to
26            the Commission's confirmation, the value under

 

 

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1            this subitem shall be zero, as further described
2            in the carbon mitigation credit procurement plan;
3            and
4                (III) any value of monetized federal tax
5            credits, direct payments, or similar subsidy
6            provided to the carbon-free energy resource from
7            any unit of government that is not already
8            reflected in energy prices.
9            If the price-per-megawatt-hour calculation
10        performed under item (iii) of this subparagraph (C)
11        for a given delivery year results in a net positive
12        value, then the electric utility counterparty to the
13        contract shall multiply such net value by the
14        applicable contract quantity and remit the amount to
15        the supplier.
16            To protect retail customers from retail rate
17        impacts that may arise upon the initiation of carbon
18        policy changes, if the price-per-megawatt-hour
19        calculation performed under item (iii) of this
20        subparagraph (C) for a given delivery year results in
21        a net negative value, then the supplier counterparty
22        to the contract shall multiply such net value by the
23        applicable contract quantity and remit such amount to
24        the electric utility counterparty. The electric
25        utility shall reflect such amounts remitted by
26        suppliers as a credit on its retail customer bills as

 

 

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1        soon as practicable.
2            (iv) to ensure that retail customers in Northern
3        Illinois do not pay more for carbon mitigation credits
4        than the value such credits provide, and
5        notwithstanding the provisions of this subsection
6        (d-10), the Agency shall not accept bids for contracts
7        that exceed a customer protection cap equal to the
8        baseline costs of carbon-free energy resources.
9            The baseline costs for the applicable year shall
10        be the following:
11                (I) For the delivery year beginning June 1,
12            2022, the baseline costs shall be an amount equal
13            to $30.30 per megawatt-hour.
14                (II) For the delivery year beginning June 1,
15            2023, the baseline costs shall be an amount equal
16            to $32.50 per megawatt-hour.
17                (III) For the delivery year beginning June 1,
18            2024, the baseline costs shall be an amount equal
19            to $33.43 per megawatt-hour.
20                (IV) For the delivery year beginning June 1,
21            2025, the baseline costs shall be an amount equal
22            to $33.50 per megawatt-hour.
23                (V) For the delivery year beginning June 1,
24            2026, the baseline costs shall be an amount equal
25            to $34.50 per megawatt-hour.
26            An Environmental Protection Agency consultant

 

 

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1        forecast, included in a report issued April 14, 2021,
2        projects that a carbon-free energy resource has the
3        opportunity to earn on average approximately $30.28
4        per megawatt-hour, for the sale of energy and capacity
5        during the time period between 2022 and 2027.
6        Therefore, the sale of carbon mitigation credits
7        provides the opportunity to receive an additional
8        amount per megawatt-hour in addition to the projected
9        prices for energy and capacity.
10            Although actual energy and capacity prices may
11        vary from year-to-year, the General Assembly finds
12        that this customer protection cap will help ensure
13        that the cost of carbon mitigation credits will be
14        less than its value, based upon the social cost of
15        carbon identified in the Technical Support Document
16        issued in February 2021 by the U.S. Interagency
17        Working Group on Social Cost of Greenhouse Gases and
18        the PJM Interconnection, LLC carbon dioxide marginal
19        emission rate for 2020, and that a carbon-free energy
20        resource receiving payment for carbon mitigation
21        credits receives no more than necessary to keep those
22        units in operation.
23        (D) No later than 7 days after the effective date of
24    this amendatory Act of the 102nd General Assembly, the
25    Agency shall publish its proposed carbon mitigation credit
26    procurement plan. The Plan shall provide that winning bids

 

 

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1    shall be selected by taking into consideration which
2    resources best match public interest criteria that
3    include, but are not limited to, minimizing carbon dioxide
4    emissions that result from electricity consumed in
5    Illinois and minimizing sulfur dioxide, nitrogen oxide,
6    and particulate matter emissions that adversely affect the
7    citizens of this State. The selection of winning bids
8    shall also take into account the incremental environmental
9    benefits resulting from the procurement or procurements,
10    such as any existing environmental benefits that are
11    preserved by a procurement held under this subsection
12    (d-10) and would cease to exist if the procurement were
13    not held, including the preservation of carbon-free energy
14    resources. For those bidders having the same public
15    interest criteria score, the relative ranking of such
16    bidders shall be determined by price. The Plan shall
17    describe in detail how each public interest factor shall
18    be considered and weighted in the bid selection process to
19    ensure that the public interest criteria are applied to
20    the procurement. The Plan shall, to the extent practical
21    and permissible by federal law, ensure that successful
22    bidders make commercially reasonable efforts to apply for
23    federal tax credits, direct payments, or similar subsidy
24    programs that support carbon-free generation and for which
25    the successful bidder is eligible. Upon publishing of the
26    carbon mitigation credit procurement plan, copies of the

 

 

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1    plan shall be posted and made publicly available on the
2    Agency's website. All interested parties shall have 7 days
3    following the date of posting to provide comment to the
4    Agency on the plan. All comments shall be posted to the
5    Agency's website. Following the end of the comment period,
6    but no more than 19 days later than the effective date of
7    this amendatory Act of the 102nd General Assembly, the
8    Agency shall revise the plan as necessary based on the
9    comments received and file its carbon mitigation credit
10    procurement plan with the Commission.
11        (E) If the Commission determines that the plan is
12    likely to result in the procurement of cost-effective
13    carbon mitigation credits, then the Commission shall,
14    after notice and hearing and opportunity for comment, but
15    no later than 42 days after the Agency filed the plan,
16    approve the plan or approve it with modification. For
17    purposes of this subsection (d-10), "cost-effective" means
18    carbon mitigation credits that are procured from
19    carbon-free energy resources at prices that are within the
20    limits specified in this paragraph (3). As part of the
21    Commission's review and acceptance or rejection of the
22    procurement results, the Commission shall, in its public
23    notice of successful bidders:
24            (i) identify how the selected carbon-free energy
25        resources satisfy the public interest criteria
26        described in this paragraph (3) of minimizing carbon

 

 

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1        dioxide emissions that result from electricity
2        consumed in Illinois and minimizing sulfur dioxide,
3        nitrogen oxide, and particulate matter emissions that
4        adversely affect the citizens of this State;
5            (ii) specifically address how the selection of
6        carbon-free energy resources takes into account the
7        incremental environmental benefits resulting from the
8        procurement, including any existing environmental
9        benefits that are preserved by the procurements held
10        under this amendatory Act of the 102nd General
11        Assembly and would have ceased to exist if the
12        procurements had not been held, such as the
13        preservation of carbon-free energy resources;
14            (iii) quantify the environmental benefit of
15        preserving the carbon-free energy resources procured
16        pursuant to this subsection (d-10), including the
17        following:
18                (I) an assessment value of avoided greenhouse
19            gas emissions measured as the product of the
20            carbon-free energy resources' output over the
21            contract term, using generally accepted
22            methodologies for the valuation of avoided
23            emissions; and
24                (II) an assessment of costs of replacement
25            with other carbon-free energy resources and
26            renewable energy resources, including wind and

 

 

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1            photovoltaic generation, based upon an assessment
2            of the prices paid for renewable energy credits
3            through programs and procurements conducted
4            pursuant to subsection (c) of Section 1-75 of this
5            Act, and the additional storage necessary to
6            produce the same or similar capability of matching
7            customer usage patterns.
8        (F) The procurements described in this paragraph (3),
9    including, but not limited to, the execution of all
10    contracts procured, shall be completed no later than
11    December 3, 2021. The procurement and plan approval
12    processes required by this paragraph (3) shall be
13    conducted in conjunction with the procurement and plan
14    approval processes required by Section 16-111.5 of the
15    Public Utilities Act, to the extent practicable. However,
16    the Agency and Commission may, as appropriate, modify the
17    various dates and timelines under this subparagraph and
18    subparagraphs (D) and (E) of this paragraph (3) to meet
19    the December 3, 2021 contract execution deadline.
20    Following the completion of such procurements, and
21    consistent with this paragraph (3), the Agency shall
22    calculate the payments to be made under each contract in a
23    timely fashion.
24        (F-1) Costs incurred by the electric utility pursuant
25    to a contract authorized by this subsection (d-10) shall
26    be deemed prudently incurred and reasonable in amount, and

 

 

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1    the electric utility shall be entitled to full cost
2    recovery pursuant to a tariff or tariffs filed with the
3    Commission.
4        (G) The counterparty electric utility shall retire all
5    carbon mitigation credits used to comply with the
6    requirements of this subsection (d-10).
7        (H) If a carbon-free energy resource is sold to
8    another owner, the rights, obligations, and commitments
9    under this subsection (d-10) shall continue to the
10    subsequent owner.
11        (I) This subsection (d-10) 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
25procurement process.
26    (i) A renewable energy credit, carbon emission credit, or

 

 

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1zero emission credit, or carbon mitigation credit can only be
2used once to comply with a single portfolio or other standard
3as set forth in subsection (c), subsection (d), or subsection
4(d-5) of this Section, respectively. A renewable energy
5credit, carbon emission credit, or zero emission credit, or
6carbon mitigation credit cannot be used to satisfy the
7requirements of more than one standard. If more than one type
8of credit is issued for the same megawatt hour of energy, only
9one credit can be used to satisfy the requirements of a single
10standard. After such use, the credit must be retired together
11with any other credits issued for the same megawatt hour of
12energy.
13(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
14101-113, eff. 1-1-20.)
 
15    (20 ILCS 3855/1-92)
16    Sec. 1-92. Aggregation of electrical load by
17municipalities, townships, and counties.
18    (a) The corporate authorities of a municipality, township
19board, or county board of a county may adopt an ordinance under
20which it may aggregate in accordance with this Section
21residential and small commercial retail electrical loads
22located, respectively, within the municipality, the township,
23or the unincorporated areas of the county and, for that
24purpose, may solicit bids and enter into service agreements to
25facilitate for those loads the sale and purchase of

 

 

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1electricity and related services and equipment.
2    The corporate authorities, township board, or county board
3may also exercise such authority jointly with any other
4municipality, township, or county. Two or more municipalities,
5townships, or counties, or a combination of both, may initiate
6a process jointly to authorize aggregation by a majority vote
7of each particular municipality, township, or county as
8required by this Section.
9    If the corporate authorities, township board, or the
10county board seek to operate the aggregation program as an
11opt-out program for residential and small commercial retail
12customers, then prior to the adoption of an ordinance with
13respect to aggregation of residential and small commercial
14retail electric loads, the corporate authorities of a
15municipality, the township board, or the county board of a
16county shall submit a referendum to its residents to determine
17whether or not the aggregation program shall operate as an
18opt-out program for residential and small commercial retail
19customers. Any county board that seeks to submit such a
20referendum to its residents shall do so only in unincorporated
21areas of the county where no electric aggregation ordinance
22has been adopted.
23    In addition to the notice and conduct requirements of the
24general election law, notice of the referendum shall state
25briefly the purpose of the referendum. The question of whether
26the corporate authorities, the township board, or the county

 

 

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1board shall adopt an opt-out aggregation program for
2residential and small commercial retail customers shall be
3submitted to the electors of the municipality, township board,
4or county board at a regular election and approved by a
5majority of the electors voting on the question. The corporate
6authorities, township board, or county board must certify to
7the proper election authority, which must submit the question
8at an election in accordance with the Election Code.
9    The election authority must submit the question in
10substantially the following form:
11        Shall the (municipality, township, or county in which
12    the question is being voted upon) have the authority to
13    arrange for the supply of electricity for its residential
14    and small commercial retail customers who have not opted
15    out of such program?
16The election authority must record the votes as "Yes" or "No".
17    If a majority of the electors voting on the question vote
18in the affirmative, then the corporate authorities, township
19board, or county board may implement an opt-out aggregation
20program for residential and small commercial retail customers.
21    A referendum must pass in each particular municipality,
22township, or county that is engaged in the aggregation
23program. If the referendum fails, then the corporate
24authorities, township board, or county board shall operate the
25aggregation program as an opt-in program for residential and
26small commercial retail customers.

 

 

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1    An ordinance under this Section shall specify whether the
2aggregation will occur only with the prior consent of each
3person owning, occupying, controlling, or using an electric
4load center proposed to be aggregated. Nothing in this
5Section, however, authorizes the aggregation of electric loads
6that are served or authorized to be served by an electric
7cooperative as defined by and pursuant to the Electric
8Supplier Act or loads served by a municipality that owns and
9operates its own electric distribution system. No aggregation
10shall take effect unless approved by a majority of the members
11of the corporate authority, township board, or county board
12voting upon the ordinance.
13    A governmental aggregator under this Section is not a
14public utility or an alternative retail electric supplier.
15    For purposes of this Section, "township" means the portion
16of a township that is an unincorporated portion of a county
17that is not otherwise a part of a municipality. In addition to
18such other limitations as are included in this Section, a
19township board shall only have authority to aggregate
20residential and small commercial customer loads in accordance
21with this Section if the county board of the county in which
22the township is located (i) is not also submitting a
23referendum to its residents at the same general election that
24the township board proposes to submit a referendum under this
25subsection (a), (ii) has not received authorization through
26passage of a referendum to operate an opt-out aggregation

 

 

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1program for residential and small commercial retail customers
2under this subsection (a), and (iii) has not otherwise enacted
3an ordinance under this subsection (a) authorizing the
4operation of an opt-in aggregation program for residential and
5small commercial retail customers as described in this
6Section.
7    (b) Upon the applicable requisite authority under this
8Section, the corporate authorities, the township board, or the
9county board, with assistance from the Illinois Power Agency,
10shall develop a plan of operation and governance for the
11aggregation program so authorized. Before adopting a plan
12under this Section, the corporate authorities, township board,
13or county board shall hold at least 2 public hearings on the
14plan. Before the first hearing, the corporate authorities,
15township board, or county board shall publish notice of the
16hearings once a week for 2 consecutive weeks in a newspaper of
17general circulation in the jurisdiction. The notice shall
18summarize the plan and state the date, time, and location of
19each hearing. Any load aggregation plan established pursuant
20to this Section shall:
21        (1) provide for universal access to all applicable
22    residential customers and equitable treatment of
23    applicable residential customers;
24        (2) describe demand management and energy efficiency
25    services to be provided to each class of customers; and
26        (3) meet any requirements established by law

 

 

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1    concerning aggregated service offered pursuant to this
2    Section.
3    (c) The process for soliciting bids for electricity and
4other related services and awarding proposed agreements for
5the purchase of electricity and other related services shall
6be conducted in the following order:
7        (1) The corporate authorities, township board, or
8    county board may solicit bids for electricity and other
9    related services. The bid specifications may include a
10    provision requiring the bidder to disclose the fuel type
11    of electricity to be procured or generated on behalf of
12    the aggregation program customers. The corporate
13    authorities, township board, or county board may consider
14    the proposed source of electricity to be procured or
15    generated to be put into the grid on behalf of aggregation
16    program customers in the competitive bidding process. The
17    Agency and Commission may collaborate to issue joint
18    guidance on voluntary uniform standards for bidder
19    disclosures of the source of electricity to be procured or
20    generated to be put into the grid on behalf of aggregation
21    program customers.
22        (1.5) A township board shall request from the electric
23    utility those residential and small commercial customers
24    within their aggregate area either by zip code or zip
25    codes or other means as determined by the electric
26    utility. The electric utility shall then provide to the

 

 

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1    township board the residential and small commercial
2    customers, including the names and addresses of
3    residential and small commercial customers,
4    electronically. The township board shall be responsible
5    for authenticating the residential and small commercial
6    customers contained in this listing and providing edits of
7    the data to affirm, add, or delete the residential and
8    small commercial customers located within its
9    jurisdiction. The township board shall provide the edited
10    list to the electric utility in an electronic format or
11    other means selected by the electric utility and certify
12    that the information is accurate.
13        (2) Notwithstanding Section 16-122 of the Public
14    Utilities Act and Section 2HH of the Consumer Fraud and
15    Deceptive Business Practices Act, an electric utility that
16    provides residential and small commercial retail electric
17    service in the aggregate area must, upon request of the
18    corporate authorities, township board, or the county board
19    in the aggregate area, submit to the requesting party, in
20    an electronic format, those account numbers, names, and
21    addresses of residential and small commercial retail
22    customers in the aggregate area that are reflected in the
23    electric utility's records at the time of the request;
24    provided, however, that any township board has first
25    provided an accurate customer list to the electric utility
26    as provided for herein.

 

 

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1    Any corporate authority, township board, or county board
2receiving customer information from an electric utility shall
3be subject to the limitations on the disclosure of the
4information described in Section 16-122 of the Public
5Utilities Act and Section 2HH of the Consumer Fraud and
6Deceptive Business Practices Act, and an electric utility
7shall not be held liable for any claims arising out of the
8provision of information pursuant to this item (2).
9    (d) If the corporate authorities, township board, or
10county board operate under an opt-in program for residential
11and small commercial retail customers, then the corporate
12authorities, township board, or county board shall comply with
13all of the following:
14        (1) Within 60 days after receiving the bids, the
15    corporate authorities, township board, or county board
16    shall allow residential and small commercial retail
17    customers to commit to the terms and conditions of a bid
18    that has been selected by the corporate authorities,
19    township board, or county board.
20        (2) If (A) the corporate authorities, township board,
21    or county board award proposed agreements for the purchase
22    of electricity and other related services and (B) an
23    agreement is reached between the corporate authorities,
24    township board, or county board for those services, then
25    customers committed to the terms and conditions according
26    to item (1) of this subsection (d) shall be committed to

 

 

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1    the agreement.
2    (e) If the corporate authorities, township board, or
3county board operate as an opt-out program for residential and
4small commercial retail customers, then it shall be the duty
5of the aggregated entity to fully inform residential and small
6commercial retail customers in advance that they have the
7right to opt out of the aggregation program. The disclosure
8shall prominently state all charges to be made and shall
9include full disclosure of the cost to obtain service pursuant
10to Section 16-103 of the Public Utilities Act, how to access
11it, and the fact that it is available to them without penalty,
12if they are currently receiving service under that Section.
13The Illinois Power Agency shall furnish, without charge, to
14any citizen a list of all supply options available to them in a
15format that allows comparison of prices and products.
16    (f) Any person or entity retained by a municipality or
17county, or jointly by more than one such unit of local
18government, to provide input, guidance, or advice in the
19selection of an electricity supplier for an aggregation
20program shall disclose in writing to the involved units of
21local government the nature of any relationship through which
22the person or entity may receive, either directly or
23indirectly, commissions or other remuneration as a result of
24the selection of any particular electricity supplier. The
25written disclosure must be made prior to formal approval by
26the involved units of local government of any professional

 

 

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1services agreement with the person or entity, or no later than
2October 1, 2012 with respect to any such professional services
3agreement entered into prior to the effective date of this
4amendatory Act of the 97th General Assembly. The disclosure
5shall cover all direct and indirect relationships through
6which commissions or remuneration may result, including the
7pooling of commissions or remuneration among multiple persons
8or entities, and shall identify all involved electricity
9suppliers. The disclosure requirements in this subsection (f)
10are to be liberally construed to ensure that the nature of
11financial interests are fully revealed, and these disclosure
12requirements shall apply regardless of whether the involved
13person or entity is licensed under Section 16-115C of the
14Public Utilities Act. Any person or entity that fails to make
15the disclosure required under this subsection (f) is liable to
16the involved units of local government in an amount equal to
17all compensation paid to such person or entity by the units of
18local government for the input, guidance, or advice in the
19selection of an electricity supplier, plus reasonable
20attorneys fees and court costs incurred by the units of local
21government in connection with obtaining such amount.
22    (g) The Illinois Power Agency shall provide assistance to
23municipalities, townships, counties, or associations working
24with municipalities to help complete the plan and bidding
25process.
26    (h) This Section does not prohibit municipalities or

 

 

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1counties from entering into an intergovernmental agreement to
2aggregate residential and small commercial retail electric
3loads.
4    (i) No later than December 31, 2022, the Illinois Power
5Agency shall produce a report assessing how aggregation of
6electrical load by municipalities, townships, and counties can
7be used to help meet the renewable energy goals outlined in
8this Act. This report shall contain, at a minimum, an
9assessment of other states' utilization of load aggregation in
10meeting renewable energy goals, any known or expected barriers
11in utilizing load aggregation for meeting renewable energy
12goals, and recommendations for possible changes in State law
13necessary for electrical load aggregation to be a driver of
14new renewable energy project development. This report shall be
15published on the Agency's website and delivered to the
16Governor and General Assembly. To assist with developing this
17report, the Agency may retain the services of its expert
18consulting firm used to develop its procurement plans as
19provided in paragraph (1) of subsection (a) of Section 1-75.
20(Source: P.A. 97-338, eff. 8-12-11; 97-823, eff. 7-18-12;
2197-1067, eff. 8-24-12; 98-404, eff. 1-1-14; 98-434, eff.
221-1-14; 98-463, eff. 8-16-13; 98-756, eff. 7-16-14.)
 
23    (20 ILCS 3855/1-125)
24    Sec. 1-125. Agency annual reports.
25    (a) By February 15 of each year, the Agency shall report

 

 

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1annually to the Governor and the General Assembly on the
2operations and transactions of the Agency. The annual report
3shall include, but not be limited to, each of the following:
4        (1) The average quantity, price, and term of all
5    contracts for electricity procured under the procurement
6    plans for electric utilities.
7        (2) (Blank).
8        (3) The quantity, price, and rate impact of all energy
9    efficiency and demand response measures purchased for
10    electric utilities, and any measures included in the
11    procurement plan pursuant to Section 16-111.5B of the
12    Public Utilities Act.
13        (4) The amount of power and energy produced by each
14    Agency facility.
15        (5) The quantity of electricity supplied by each
16    Agency facility to municipal electric systems,
17    governmental aggregators, or rural electric cooperatives
18    in Illinois.
19        (6) The revenues as allocated by the Agency to each
20    facility.
21        (7) The costs as allocated by the Agency to each
22    facility.
23        (8) The accumulated depreciation for each facility.
24        (9) The status of any projects under development.
25        (10) Basic financial and operating information
26    specifically detailed for the reporting year and

 

 

10200HB3666sam001- 516 -LRB102 13525 AMC 28481 a

1    including, but not limited to, income and expense
2    statements, balance sheets, and changes in financial
3    position, all in accordance with generally accepted
4    accounting principles, debt structure, and a summary of
5    funds on a cash basis.
6        (11) The average quantity, price, contract type and
7    term, and rate impact of all renewable resources procured
8    purchased under the long-term renewable resources
9    electricity procurement plans for electric utilities.
10        (12) A comparison of the costs associated with the
11    Agency's procurement of renewable energy resources to (A)
12    the Agency's costs associated with electricity generated
13    by other types of generation facilities and (B) the
14    benefits associated with the Agency's procurement of
15    renewable energy resources.
16        (13) An analysis of the rate impacts associated with
17    the Illinois Power Agency's procurement of renewable
18    resources, including, but not limited to, any long-term
19    contracts, on the eligible retail customers of electric
20    utilities. The analysis shall include the Agency's
21    estimate of the total dollar impact that the Agency's
22    procurement of renewable resources has had on the annual
23    electricity bills of the customer classes that comprise
24    each eligible retail customer class taking service from an
25    electric utility.
26        (14) (Blank). An analysis of how the operation of the

 

 

10200HB3666sam001- 517 -LRB102 13525 AMC 28481 a

1    alternative compliance payment mechanism, any long-term
2    contracts, or other aspects of the applicable renewable
3    portfolio standards impacts the rates of customers of
4    alternative retail electric suppliers.
5    (b) In addition to reporting on the transactions and
6operations of the Agency, the Agency shall also endeavor to
7report on the following items through its annual report,
8recognizing that full and accurate information may not be
9available for certain items:
10        (1) The overall nameplate capacity amount of installed
11    and scheduled renewable energy generation capacity
12    physically located in Illinois.
13        (2) The percentage of installed and scheduled
14    renewable energy generation capacity as a share of overall
15    electricity generation capacity physically located in
16    Illinois.
17        (3) The amount of megawatt hours produced by renewable
18    energy generation capacity physically located in Illinois
19    for the preceding delivery year.
20        (4) The percentage of megawatt hours produced by
21    renewable energy generation capacity physically located in
22    Illinois as a share of overall electricity generation from
23    facilities physically located in Illinois for the
24    preceding delivery year.
25        (5) The renewable portfolio standard expenditures made
26    pursuant to paragraph (1) of subsection (c) of Section

 

 

10200HB3666sam001- 518 -LRB102 13525 AMC 28481 a

1    1-75 and the total scheduled and installed renewable
2    generation capacity expected to result from these
3    investments. This information shall include the total cost
4    of REC delivery contracts of the renewable portfolio
5    standard by project category, including, but not limited
6    to, renewable energy credits delivery contracts entered
7    into pursuant to subparagraphs (C), (G), (K), and (R) of
8    paragraph (1) of subsection (c) Section 1-75. The Agency
9    shall also report on the total amount of customer load
10    featuring renewable portfolio standard compliance
11    obligations scheduled to be met by self-direct customers
12    pursuant to subparagraph (R) of paragraph (1) of
13    subsection (c) of Section 1-75, as well as the minimum
14    annual quantities of renewable energy credits scheduled to
15    be retired by those customers and amount of installed
16    renewable energy generating capacity used to meet the
17    requirements of subparagraph (R) of paragraph (1) of
18    subsection (c) of Section 1-75.
19    The Agency may seek assistance from the Illinois Commerce
20Commission in developing its annual report and may also retain
21the services of its expert consulting firm used to develop its
22procurement plans as outlined in paragraph (1) of subsection
23(a) of Section 1-75. Confidential or commercially sensitive
24business information provided by retail customers, alternative
25retail electric suppliers, or other parties shall be kept
26confidential by the Agency consistent with Section 1-120, but

 

 

10200HB3666sam001- 519 -LRB102 13525 AMC 28481 a

1may be publicly reported in aggregate form.
2(Source: P.A. 99-536, eff. 7-8-16.)
 
3    (20 ILCS 3855/1-128 new)
4    Sec. 1-128. Nonprofit Electric Generation Task Force.
5    (a) By January 1, 2028, the Nonprofit Electric Generation
6Task Force shall be established to assess the technological,
7economic, and regulatory feasibility as well as legislative
8support mechanisms necessary to achieve the carbon emission
9reduction targets described in Section 9.15 of the
10Environmental Protection Act through the use of carbon
11capture, sequestration, and utilization technology.
12    (b) The Task Force shall consist of the following members:
13        (1) one representative of the Prairie Research
14    Institute at the University of Illinois, appointed by the
15    Governor with the advice and consent of the Senate;
16        (2) one representative of an association representing
17    municipal utilities, joint municipal electric power
18    agencies, or municipal electric generators with an
19    ownership interest in Prairie State Generating Company,
20    appointed by the Governor with the advice and consent of
21    the Senate;
22        (3) one representative of an association of electric
23    cooperatives with ownership interests in Prairie State
24    Generating Company, appointed by the Governor with the
25    advice and consent of the Senate;

 

 

10200HB3666sam001- 520 -LRB102 13525 AMC 28481 a

1        (4) one representative of a labor union or building
2    trade with technical experience at a coal generation
3    facility, appointed by the Governor with the advice and
4    consent of the Senate;
5        (5) the Director of Natural Resources, or his or her
6    designee;
7        (6) the Governor, or his or her designee;
8        (7) one expert in power sector reliability, appointed
9    by the Governor with the advice and consent of the Senate;
10        (8) one expert in financing large scale power sector
11    carbon reduction projects, appointed by the Governor with
12    the advice and consent of the Senate;
13        (9) one designee of the President of the Senate;
14        (10) one designee of the Speaker of the House;
15        (11) one designee of the Senate Minority Leader; and
16        (12) one designee of the House Minority Leader.
17    (c) The Task Force shall have the following duties:
18        (1) investigating the technical and financial options
19    to install carbon capture, sequestration, utilization, and
20    direct air capture at the Prairie State Generation Campus;
21        (2) assessing the existing regulatory construct and
22    any legislative support mechanisms necessary to reduce
23    carbon at the Prairie State Generating Company in
24    accordance with Section 9.15 of the Environmental
25    Protection Act; and
26        (3) preparing and filing a report with the Governor

 

 

10200HB3666sam001- 521 -LRB102 13525 AMC 28481 a

1    and the General Assembly that sets forth the Task Force's
2    findings.
3    (d) The Task Force may hire an independent third-party
4auditor with relevant financial expertise to conduct a
5financial audit of the Prairie State Generating Company,
6including an examination of potential financial solutions to
7alleviate the existing indirect debt obligations facing the
8joint indirect Prairie State Generating Company owners in
9Illinois. The audit shall include a review of the existing
10debt structure for the Prairie State Generating Company and
11the individual finances of each joint direct company owner in
12Illinois in order to recommend an appropriate and equitable
13method for allocating any funds, whether from the State or
14federal government, or any other legal source, that may be
15provided to support the joint indirect owners in Illinois. Any
16commercially sensitive information reviewed pursuant to this
17audit shall be reasonably redacted from the Task Force's final
18report and shall not be subject to disclosure under the
19Freedom of Information Act.
 
20    Section 90-35. The State Finance Act is amended by adding
21Sections 5.935, 5.936, and 5.937 as follows:
 
22    (30 ILCS 105/5.935 new)
23    Sec. 5.935. The Coal to Solar and Energy Storage
24Initiative Fund.
 

 

 

10200HB3666sam001- 522 -LRB102 13525 AMC 28481 a

1    (30 ILCS 105/5.936 new)
2    Sec. 5.936. The Energy Transition Assistance Fund.
 
3    (30 ILCS 105/5.937 new)
4    Sec. 5.937. The Consumer Intervenor Compensation Fund.
 
5    Section 90-36. The Illinois Procurement Code is amended by
6changing Section 1-10 as follows:
 
7    (30 ILCS 500/1-10)
8    Sec. 1-10. Application.
9    (a) This Code applies only to procurements for which
10bidders, offerors, potential contractors, or contractors were
11first solicited on or after July 1, 1998. This Code shall not
12be construed to affect or impair any contract, or any
13provision of a contract, entered into based on a solicitation
14prior to the implementation date of this Code as described in
15Article 99, including, but not limited to, any covenant
16entered into with respect to any revenue bonds or similar
17instruments. All procurements for which contracts are
18solicited between the effective date of Articles 50 and 99 and
19July 1, 1998 shall be substantially in accordance with this
20Code and its intent.
21    (b) This Code shall apply regardless of the source of the
22funds with which the contracts are paid, including federal

 

 

10200HB3666sam001- 523 -LRB102 13525 AMC 28481 a

1assistance moneys. This Code shall not apply to:
2        (1) Contracts between the State and its political
3    subdivisions or other governments, or between State
4    governmental bodies, except as specifically provided in
5    this Code.
6        (2) Grants, except for the filing requirements of
7    Section 20-80.
8        (3) Purchase of care, except as provided in Section
9    5-30.6 of the Illinois Public Aid Code and this Section.
10        (4) Hiring of an individual as employee and not as an
11    independent contractor, whether pursuant to an employment
12    code or policy or by contract directly with that
13    individual.
14        (5) Collective bargaining contracts.
15        (6) Purchase of real estate, except that notice of
16    this type of contract with a value of more than $25,000
17    must be published in the Procurement Bulletin within 10
18    calendar days after the deed is recorded in the county of
19    jurisdiction. The notice shall identify the real estate
20    purchased, the names of all parties to the contract, the
21    value of the contract, and the effective date of the
22    contract.
23        (7) Contracts necessary to prepare for anticipated
24    litigation, enforcement actions, or investigations,
25    provided that the chief legal counsel to the Governor
26    shall give his or her prior approval when the procuring

 

 

10200HB3666sam001- 524 -LRB102 13525 AMC 28481 a

1    agency is one subject to the jurisdiction of the Governor,
2    and provided that the chief legal counsel of any other
3    procuring entity subject to this Code shall give his or
4    her prior approval when the procuring entity is not one
5    subject to the jurisdiction of the Governor.
6        (8) (Blank).
7        (9) Procurement expenditures by the Illinois
8    Conservation Foundation when only private funds are used.
9        (10) (Blank).
10        (11) Public-private agreements entered into according
11    to the procurement requirements of Section 20 of the
12    Public-Private Partnerships for Transportation Act and
13    design-build agreements entered into according to the
14    procurement requirements of Section 25 of the
15    Public-Private Partnerships for Transportation Act.
16        (12) Contracts for legal, financial, and other
17    professional and artistic services entered into on or
18    before December 31, 2018 by the Illinois Finance Authority
19    in which the State of Illinois is not obligated. Such
20    contracts shall be awarded through a competitive process
21    authorized by the Board of the Illinois Finance Authority
22    and are subject to Sections 5-30, 20-160, 50-13, 50-20,
23    50-35, and 50-37 of this Code, as well as the final
24    approval by the Board of the Illinois Finance Authority of
25    the terms of the contract.
26        (13) Contracts for services, commodities, and

 

 

10200HB3666sam001- 525 -LRB102 13525 AMC 28481 a

1    equipment to support the delivery of timely forensic
2    science services in consultation with and subject to the
3    approval of the Chief Procurement Officer as provided in
4    subsection (d) of Section 5-4-3a of the Unified Code of
5    Corrections, except for the requirements of Sections
6    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
7    Code; however, the Chief Procurement Officer may, in
8    writing with justification, waive any certification
9    required under Article 50 of this Code. For any contracts
10    for services which are currently provided by members of a
11    collective bargaining agreement, the applicable terms of
12    the collective bargaining agreement concerning
13    subcontracting shall be followed.
14        On and after January 1, 2019, this paragraph (13),
15    except for this sentence, is inoperative.
16        (14) Contracts for participation expenditures required
17    by a domestic or international trade show or exhibition of
18    an exhibitor, member, or sponsor.
19        (15) Contracts with a railroad or utility that
20    requires the State to reimburse the railroad or utilities
21    for the relocation of utilities for construction or other
22    public purpose. Contracts included within this paragraph
23    (15) shall include, but not be limited to, those
24    associated with: relocations, crossings, installations,
25    and maintenance. For the purposes of this paragraph (15),
26    "railroad" means any form of non-highway ground

 

 

10200HB3666sam001- 526 -LRB102 13525 AMC 28481 a

1    transportation that runs on rails or electromagnetic
2    guideways and "utility" means: (1) public utilities as
3    defined in Section 3-105 of the Public Utilities Act, (2)
4    telecommunications carriers as defined in Section 13-202
5    of the Public Utilities Act, (3) electric cooperatives as
6    defined in Section 3.4 of the Electric Supplier Act, (4)
7    telephone or telecommunications cooperatives as defined in
8    Section 13-212 of the Public Utilities Act, (5) rural
9    water or waste water systems with 10,000 connections or
10    less, (6) a holder as defined in Section 21-201 of the
11    Public Utilities Act, and (7) municipalities owning or
12    operating utility systems consisting of public utilities
13    as that term is defined in Section 11-117-2 of the
14    Illinois Municipal Code.
15        (16) Procurement expenditures necessary for the
16    Department of Public Health to provide the delivery of
17    timely newborn screening services in accordance with the
18    Newborn Metabolic Screening Act.
19        (17) Procurement expenditures necessary for the
20    Department of Agriculture, the Department of Financial and
21    Professional Regulation, the Department of Human Services,
22    and the Department of Public Health to implement the
23    Compassionate Use of Medical Cannabis Program and Opioid
24    Alternative Pilot Program requirements and ensure access
25    to medical cannabis for patients with debilitating medical
26    conditions in accordance with the Compassionate Use of

 

 

10200HB3666sam001- 527 -LRB102 13525 AMC 28481 a

1    Medical Cannabis Program Act.
2        (18) This Code does not apply to any procurements
3    necessary for the Department of Agriculture, the
4    Department of Financial and Professional Regulation, the
5    Department of Human Services, the Department of Commerce
6    and Economic Opportunity, and the Department of Public
7    Health to implement the Cannabis Regulation and Tax Act if
8    the applicable agency has made a good faith determination
9    that it is necessary and appropriate for the expenditure
10    to fall within this exemption and if the process is
11    conducted in a manner substantially in accordance with the
12    requirements of Sections 20-160, 25-60, 30-22, 50-5,
13    50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
14    50-36, 50-37, 50-38, and 50-50 of this Code; however, for
15    Section 50-35, compliance applies only to contracts or
16    subcontracts over $100,000. Notice of each contract
17    entered into under this paragraph (18) that is related to
18    the procurement of goods and services identified in
19    paragraph (1) through (9) of this subsection shall be
20    published in the Procurement Bulletin within 14 calendar
21    days after contract execution. The Chief Procurement
22    Officer shall prescribe the form and content of the
23    notice. Each agency shall provide the Chief Procurement
24    Officer, on a monthly basis, in the form and content
25    prescribed by the Chief Procurement Officer, a report of
26    contracts that are related to the procurement of goods and

 

 

10200HB3666sam001- 528 -LRB102 13525 AMC 28481 a

1    services identified in this subsection. At a minimum, this
2    report shall include the name of the contractor, a
3    description of the supply or service provided, the total
4    amount of the contract, the term of the contract, and the
5    exception to this Code utilized. A copy of any or all of
6    these contracts shall be made available to the Chief
7    Procurement Officer immediately upon request. The Chief
8    Procurement Officer shall submit a report to the Governor
9    and General Assembly no later than November 1 of each year
10    that includes, at a minimum, an annual summary of the
11    monthly information reported to the Chief Procurement
12    Officer. This exemption becomes inoperative 5 years after
13    June 25, 2019 (the effective date of Public Act 101-27)
14    this amendatory Act of the 101st General Assembly.
15        (19) Procurement expenditures necessary for the
16    Illinois Commerce Commission to hire third-party
17    facilitators pursuant to Sections 16-105.17 and Section
18    16-108.18 of the Public Utilities Act.
19    Notwithstanding any other provision of law, for contracts
20entered into on or after October 1, 2017 under an exemption
21provided in any paragraph of this subsection (b), except
22paragraph (1), (2), or (5), each State agency shall post to the
23appropriate procurement bulletin the name of the contractor, a
24description of the supply or service provided, the total
25amount of the contract, the term of the contract, and the
26exception to the Code utilized. The chief procurement officer

 

 

10200HB3666sam001- 529 -LRB102 13525 AMC 28481 a

1shall submit a report to the Governor and General Assembly no
2later than November 1 of each year that shall include, at a
3minimum, an annual summary of the monthly information reported
4to the chief procurement officer.
5    (c) This Code does not apply to the electric power
6procurement process provided for under Section 1-75 of the
7Illinois Power Agency Act and Section 16-111.5 of the Public
8Utilities Act.
9    (d) Except for Section 20-160 and Article 50 of this Code,
10and as expressly required by Section 9.1 of the Illinois
11Lottery Law, the provisions of this Code do not apply to the
12procurement process provided for under Section 9.1 of the
13Illinois Lottery Law.
14    (e) This Code does not apply to the process used by the
15Capital Development Board to retain a person or entity to
16assist the Capital Development Board with its duties related
17to the determination of costs of a clean coal SNG brownfield
18facility, as defined by Section 1-10 of the Illinois Power
19Agency Act, as required in subsection (h-3) of Section 9-220
20of the Public Utilities Act, including calculating the range
21of capital costs, the range of operating and maintenance
22costs, or the sequestration costs or monitoring the
23construction of clean coal SNG brownfield facility for the
24full duration of construction.
25    (f) (Blank).
26    (g) (Blank).

 

 

10200HB3666sam001- 530 -LRB102 13525 AMC 28481 a

1    (h) This Code does not apply to the process to procure or
2contracts entered into in accordance with Sections 11-5.2 and
311-5.3 of the Illinois Public Aid Code.
4    (i) Each chief procurement officer may access records
5necessary to review whether a contract, purchase, or other
6expenditure is or is not subject to the provisions of this
7Code, unless such records would be subject to attorney-client
8privilege.
9    (j) This Code does not apply to the process used by the
10Capital Development Board to retain an artist or work or works
11of art as required in Section 14 of the Capital Development
12Board Act.
13    (k) This Code does not apply to the process to procure
14contracts, or contracts entered into, by the State Board of
15Elections or the State Electoral Board for hearing officers
16appointed pursuant to the Election Code.
17    (l) This Code does not apply to the processes used by the
18Illinois Student Assistance Commission to procure supplies and
19services paid for from the private funds of the Illinois
20Prepaid Tuition Fund. As used in this subsection (l), "private
21funds" means funds derived from deposits paid into the
22Illinois Prepaid Tuition Trust Fund and the earnings thereon.
23(Source: P.A. 100-43, eff. 8-9-17; 100-580, eff. 3-12-18;
24100-757, eff. 8-10-18; 100-1114, eff. 8-28-18; 101-27, eff.
256-25-19; 101-81, eff. 7-12-19; 101-363, eff. 8-9-19; revised
269-17-19.)
 

 

 

10200HB3666sam001- 531 -LRB102 13525 AMC 28481 a

1    Section 90-36a. The Business Enterprise for Minorities,
2Women, and Persons with Disabilities Act is amended by
3changing Sections 4f and 7 as follows:
 
4    (30 ILCS 575/4f)
5    (Text of Section before amendment by P.A. 101-657, Article
640, Section 40-130)
7    (Section scheduled to be repealed on June 30, 2024)
8    Sec. 4f. Award of State contracts.
9    (1) It is hereby declared to be the public policy of the
10State of Illinois to promote and encourage each State agency
11and public institution of higher education to use businesses
12owned by minorities, women, and persons with disabilities in
13the area of goods and services, including, but not limited to,
14insurance services, investment management services,
15information technology services, accounting services,
16architectural and engineering services, and legal services.
17Furthermore, each State agency and public institution of
18higher education shall utilize such firms to the greatest
19extent feasible within the bounds of financial and fiduciary
20prudence, and take affirmative steps to remove any barriers to
21the full participation of such firms in the procurement and
22contracting opportunities afforded.
23        (a) When a State agency or public institution of
24    higher education, other than a community college, awards a

 

 

10200HB3666sam001- 532 -LRB102 13525 AMC 28481 a

1    contract for insurance services, for each State agency or
2    public institution of higher education, it shall be the
3    aspirational goal to use insurance brokers owned by
4    minorities, women, and persons with disabilities as
5    defined by this Act, for not less than 20% of the total
6    annual premiums or fees; provided that, contracts
7    representing at least 11% of the total annual premiums or
8    fees shall be awarded to businesses owned by minorities;
9    contracts representing at least 7% of the total annual
10    premiums or fees shall be awarded to women-owned
11    businesses; and contracts representing at least 2% of the
12    total annual premiums or fees shall be awarded to
13    businesses owned by persons with disabilities.
14        (b) When a State agency or public institution of
15    higher education, other than a community college, awards a
16    contract for investment services, for each State agency or
17    public institution of higher education, it shall be the
18    aspirational goal to use emerging investment managers
19    owned by minorities, women, and persons with disabilities
20    as defined by this Act, for not less than 20% of the total
21    funds under management; provided that, contracts
22    representing at least 11% of the total funds under
23    management shall be awarded to businesses owned by
24    minorities; contracts representing at least 7% of the
25    total funds under management shall be awarded to
26    women-owned businesses; and contracts representing at

 

 

10200HB3666sam001- 533 -LRB102 13525 AMC 28481 a

1    least 2% of the total funds under management shall be
2    awarded to businesses owned by persons with disabilities.
3    Furthermore, it is the aspirational goal that not less
4    than 20% of the direct asset managers of the State funds be
5    minorities, women, and persons with disabilities.
6        (c) When a State agency or public institution of
7    higher education, other than a community college, awards
8    contracts for information technology services, accounting
9    services, architectural and engineering services, and
10    legal services, for each State agency and public
11    institution of higher education, it shall be the
12    aspirational goal to use such firms owned by minorities,
13    women, and persons with disabilities as defined by this
14    Act and lawyers who are minorities, women, and persons
15    with disabilities as defined by this Act, for not less
16    than 20% of the total dollar amount of State contracts;
17    provided that, contracts representing at least 11% of the
18    total dollar amount of State contracts shall be awarded to
19    businesses owned by minorities or minority lawyers;
20    contracts representing at least 7% of the total dollar
21    amount of State contracts shall be awarded to women-owned
22    businesses or women who are lawyers; and contracts
23    representing at least 2% of the total dollar amount of
24    State contracts shall be awarded to businesses owned by
25    persons with disabilities or persons with disabilities who
26    are lawyers.

 

 

10200HB3666sam001- 534 -LRB102 13525 AMC 28481 a

1        (d) When a community college awards a contract for
2    insurance services, investment services, information
3    technology services, accounting services, architectural
4    and engineering services, and legal services, it shall be
5    the aspirational goal of each community college to use
6    businesses owned by minorities, women, and persons with
7    disabilities as defined in this Act for not less than 20%
8    of the total amount spent on contracts for these services
9    collectively; provided that, contracts representing at
10    least 11% of the total amount spent on contracts for these
11    services shall be awarded to businesses owned by
12    minorities; contracts representing at least 7% of the
13    total amount spent on contracts for these services shall
14    be awarded to women-owned businesses; and contracts
15    representing at least 2% of the total amount spent on
16    contracts for these services shall be awarded to
17    businesses owned by persons with disabilities. When a
18    community college awards contracts for investment
19    services, contracts awarded to investment managers who are
20    not emerging investment managers as defined in this Act
21    shall not be considered businesses owned by minorities,
22    women, or persons with disabilities for the purposes of
23    this Section.
24        (e) When a State agency or public institution of
25    higher education issues competitive solicitations and the
26    award history for a service or supply category shows

 

 

10200HB3666sam001- 535 -LRB102 13525 AMC 28481 a

1    awards to a class of business owners that are
2    underrepresented, the Council shall determine the reason
3    for the disparity and shall identify potential and
4    appropriate methods to minimize or eliminate the cause for
5    the disparity.
6        If any State agency or public institution of higher
7    education contract is eligible to be paid for or
8    reimbursed, in whole or in part, with federal-aid funds,
9    grants, or loans, and the provisions of this paragraph (e)
10    would result in the loss of those federal-aid funds,
11    grants, or loans, then the contract is exempt from the
12    provisions of this paragraph (e) in order to remain
13    eligible for those federal-aid funds, grants, or loans.
14    (2) As used in this Section:
15        "Accounting services" means the measurement,
16    processing and communication of financial information
17    about economic entities including, but is not limited to,
18    financial accounting, management accounting, auditing,
19    cost containment and auditing services, taxation and
20    accounting information systems.
21        "Architectural and engineering services" means
22    professional services of an architectural or engineering
23    nature, or incidental services, that members of the
24    architectural and engineering professions, and individuals
25    in their employ, may logically or justifiably perform,
26    including studies, investigations, surveying and mapping,

 

 

10200HB3666sam001- 536 -LRB102 13525 AMC 28481 a

1    tests, evaluations, consultations, comprehensive
2    planning, program management, conceptual designs, plans
3    and specifications, value engineering, construction phase
4    services, soils engineering, drawing reviews, preparation
5    of operating and maintenance manuals, and other related
6    services.
7        "Emerging investment manager" means an investment
8    manager or claims consultant having assets under
9    management below $10 billion or otherwise adjudicating
10    claims.
11        "Information technology services" means, but is not
12    limited to, specialized technology-oriented solutions by
13    combining the processes and functions of software,
14    hardware, networks, telecommunications, web designers,
15    cloud developing resellers, and electronics.
16        "Insurance broker" means an insurance brokerage firm,
17    claims administrator, or both, that procures, places all
18    lines of insurance, or administers claims with annual
19    premiums or fees of at least $5,000,000 but not more than
20    $10,000,000.
21        "Legal services" means work performed by a lawyer
22    including, but not limited to, contracts in anticipation
23    of litigation, enforcement actions, or investigations.
24    (3) Each State agency and public institution of higher
25education shall adopt policies that identify its plan and
26implementation procedures for increasing the use of service

 

 

10200HB3666sam001- 537 -LRB102 13525 AMC 28481 a

1firms owned by minorities, women, and persons with
2disabilities.
3    (4) Except as provided in subsection (5), the Council
4shall file no later than March 1 of each year an annual report
5to the Governor, the Bureau on Apprenticeship Programs and
6Clean Energy Jobs, and the General Assembly. The report filed
7with the General Assembly shall be filed as required in
8Section 3.1 of the General Assembly Organization Act. This
9report shall: (i) identify the service firms used by each
10State agency and public institution of higher education, (ii)
11identify the actions it has undertaken to increase the use of
12service firms owned by minorities, women, and persons with
13disabilities, including encouraging non-minority-owned firms
14to use other service firms owned by minorities, women, and
15persons with disabilities as subcontractors when the
16opportunities arise, (iii) state any recommendations made by
17the Council to each State agency and public institution of
18higher education to increase participation by the use of
19service firms owned by minorities, women, and persons with
20disabilities, and (iv) include the following:
21        (A) For insurance services: the names of the insurance
22    brokers or claims consultants used, the total of risk
23    managed by each State agency and public institution of
24    higher education by insurance brokers, the total
25    commissions, fees paid, or both, the lines or insurance
26    policies placed, and the amount of premiums placed; and

 

 

10200HB3666sam001- 538 -LRB102 13525 AMC 28481 a

1    the percentage of the risk managed by insurance brokers,
2    the percentage of total commission, fees paid, or both,
3    the lines or insurance policies placed, and the amount of
4    premiums placed with each by the insurance brokers owned
5    by minorities, women, and persons with disabilities by
6    each State agency and public institution of higher
7    education.
8        (B) For investment management services: the names of
9    the investment managers used, the total funds under
10    management of investment managers; the total commissions,
11    fees paid, or both; the total and percentage of funds
12    under management of emerging investment managers owned by
13    minorities, women, and persons with disabilities,
14    including the total and percentage of total commissions,
15    fees paid, or both by each State agency and public
16    institution of higher education.
17        (C) The names of service firms, the percentage and
18    total dollar amount paid for professional services by
19    category by each State agency and public institution of
20    higher education.
21        (D) The names of service firms, the percentage and
22    total dollar amount paid for services by category to firms
23    owned by minorities, women, and persons with disabilities
24    by each State agency and public institution of higher
25    education.
26        (E) The total number of contracts awarded for services

 

 

10200HB3666sam001- 539 -LRB102 13525 AMC 28481 a

1    by category and the total number of contracts awarded to
2    firms owned by minorities, women, and persons with
3    disabilities by each State agency and public institution
4    of higher education.
5    (5) For community college districts, the Business
6Enterprise Council shall only report the following information
7for each community college district: (i) the name of the
8community colleges in the district, (ii) the name and contact
9information of a person at each community college appointed to
10be the single point of contact for vendors owned by
11minorities, women, or persons with disabilities, (iii) the
12policy of the community college district concerning certified
13vendors, (iv) the certifications recognized by the community
14college district for determining whether a business is owned
15or controlled by a minority, woman, or person with a
16disability, (v) outreach efforts conducted by the community
17college district to increase the use of certified vendors,
18(vi) the total expenditures by the community college district
19in the prior fiscal year in the divisions of work specified in
20paragraphs (a), (b), and (c) of subsection (1) of this Section
21and the amount paid to certified vendors in those divisions of
22work, and (vii) the total number of contracts entered into for
23the divisions of work specified in paragraphs (a), (b), and
24(c) of subsection (1) of this Section and the total number of
25contracts awarded to certified vendors providing these
26services to the community college district. The Business

 

 

10200HB3666sam001- 540 -LRB102 13525 AMC 28481 a

1Enterprise Council shall not make any utilization reports
2under this Act for community college districts for Fiscal Year
32015 and Fiscal Year 2016, but shall make the report required
4by this subsection for Fiscal Year 2017 and for each fiscal
5year thereafter. The Business Enterprise Council shall report
6the information in items (i), (ii), (iii), and (iv) of this
7subsection beginning in September of 2016. The Business
8Enterprise Council may collect the data needed to make its
9report from the Illinois Community College Board.
10    (6) The status of the utilization of services shall be
11discussed at each of the regularly scheduled Business
12Enterprise Council meetings. Time shall be allotted for the
13Council to receive, review, and discuss the progress of the
14use of service firms owned by minorities, women, and persons
15with disabilities by each State agency and public institution
16of higher education; and any evidence regarding past or
17present racial, ethnic, or gender-based discrimination which
18directly impacts a State agency or public institution of
19higher education contracting with such firms. If after
20reviewing such evidence the Council finds that there is or has
21been such discrimination against a specific group, race or
22sex, the Council shall establish sheltered markets or adjust
23existing sheltered markets tailored to address the Council's
24specific findings for the divisions of work specified in
25paragraphs (a), (b), and (c) of subsection (1) of this
26Section.

 

 

10200HB3666sam001- 541 -LRB102 13525 AMC 28481 a

1(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20;
2101-657, Article 5, Section 5-10, eff. 7-1-21 (See Section 25
3of P.A. 102-29 for effective date of P.A. 101-657, Article 5,
4Section 5-10); 102-29, eff. 6-25-21.)
 
5    (Text of Section after amendment by P.A. 101-657, Article
640, Section 40-130)
7    (Section scheduled to be repealed on June 30, 2024)
8    Sec. 4f. Award of State contracts.
9    (1) It is hereby declared to be the public policy of the
10State of Illinois to promote and encourage each State agency
11and public institution of higher education to use businesses
12owned by minorities, women, and persons with disabilities in
13the area of goods and services, including, but not limited to,
14insurance services, investment management services,
15information technology services, accounting services,
16architectural and engineering services, and legal services.
17Furthermore, each State agency and public institution of
18higher education shall utilize such firms to the greatest
19extent feasible within the bounds of financial and fiduciary
20prudence, and take affirmative steps to remove any barriers to
21the full participation of such firms in the procurement and
22contracting opportunities afforded.
23        (a) When a State agency or public institution of
24    higher education, other than a community college, awards a
25    contract for insurance services, for each State agency or

 

 

10200HB3666sam001- 542 -LRB102 13525 AMC 28481 a

1    public institution of higher education, it shall be the
2    aspirational goal to use insurance brokers owned by
3    minorities, women, and persons with disabilities as
4    defined by this Act, for not less than 20% of the total
5    annual premiums or fees; provided that, contracts
6    representing at least 11% of the total annual premiums or
7    fees shall be awarded to businesses owned by minorities;
8    contracts representing at least 7% of the total annual
9    premiums or fees shall be awarded to women-owned
10    businesses; and contracts representing at least 2% of the
11    total annual premiums or fees shall be awarded to
12    businesses owned by persons with disabilities.
13        (b) When a State agency or public institution of
14    higher education, other than a community college, awards a
15    contract for investment services, for each State agency or
16    public institution of higher education, it shall be the
17    aspirational goal to use emerging investment managers
18    owned by minorities, women, and persons with disabilities
19    as defined by this Act, for not less than 20% of the total
20    funds under management; provided that, contracts
21    representing at least 11% of the total funds under
22    management shall be awarded to businesses owned by
23    minorities; contracts representing at least 7% of the
24    total funds under management shall be awarded to
25    women-owned businesses; and contracts representing at
26    least 2% of the total funds under management shall be

 

 

10200HB3666sam001- 543 -LRB102 13525 AMC 28481 a

1    awarded to businesses owned by persons with disabilities.
2    Furthermore, it is the aspirational goal that not less
3    than 20% of the direct asset managers of the State funds be
4    minorities, women, and persons with disabilities.
5        (c) When a State agency or public institution of
6    higher education, other than a community college, awards
7    contracts for information technology services, accounting
8    services, architectural and engineering services, and
9    legal services, for each State agency and public
10    institution of higher education, it shall be the
11    aspirational goal to use such firms owned by minorities,
12    women, and persons with disabilities as defined by this
13    Act and lawyers who are minorities, women, and persons
14    with disabilities as defined by this Act, for not less
15    than 20% of the total dollar amount of State contracts;
16    provided that, contracts representing at least 11% of the
17    total dollar amount of State contracts shall be awarded to
18    businesses owned by minorities or minority lawyers;
19    contracts representing at least 7% of the total dollar
20    amount of State contracts shall be awarded to women-owned
21    businesses or women who are lawyers; and contracts
22    representing at least 2% of the total dollar amount of
23    State contracts shall be awarded to businesses owned by
24    persons with disabilities or persons with disabilities who
25    are lawyers.
26        (d) When a community college awards a contract for

 

 

10200HB3666sam001- 544 -LRB102 13525 AMC 28481 a

1    insurance services, investment services, information
2    technology services, accounting services, architectural
3    and engineering services, and legal services, it shall be
4    the aspirational goal of each community college to use
5    businesses owned by minorities, women, and persons with
6    disabilities as defined in this Act for not less than 20%
7    of the total amount spent on contracts for these services
8    collectively; provided that, contracts representing at
9    least 11% of the total amount spent on contracts for these
10    services shall be awarded to businesses owned by
11    minorities; contracts representing at least 7% of the
12    total amount spent on contracts for these services shall
13    be awarded to women-owned businesses; and contracts
14    representing at least 2% of the total amount spent on
15    contracts for these services shall be awarded to
16    businesses owned by persons with disabilities. When a
17    community college awards contracts for investment
18    services, contracts awarded to investment managers who are
19    not emerging investment managers as defined in this Act
20    shall not be considered businesses owned by minorities,
21    women, or persons with disabilities for the purposes of
22    this Section.
23    (2) As used in this Section:
24        "Accounting services" means the measurement,
25    processing and communication of financial information
26    about economic entities including, but is not limited to,

 

 

10200HB3666sam001- 545 -LRB102 13525 AMC 28481 a

1    financial accounting, management accounting, auditing,
2    cost containment and auditing services, taxation and
3    accounting information systems.
4        "Architectural and engineering services" means
5    professional services of an architectural or engineering
6    nature, or incidental services, that members of the
7    architectural and engineering professions, and individuals
8    in their employ, may logically or justifiably perform,
9    including studies, investigations, surveying and mapping,
10    tests, evaluations, consultations, comprehensive
11    planning, program management, conceptual designs, plans
12    and specifications, value engineering, construction phase
13    services, soils engineering, drawing reviews, preparation
14    of operating and maintenance manuals, and other related
15    services.
16        "Emerging investment manager" means an investment
17    manager or claims consultant having assets under
18    management below $10 billion or otherwise adjudicating
19    claims.
20        "Information technology services" means, but is not
21    limited to, specialized technology-oriented solutions by
22    combining the processes and functions of software,
23    hardware, networks, telecommunications, web designers,
24    cloud developing resellers, and electronics.
25        "Insurance broker" means an insurance brokerage firm,
26    claims administrator, or both, that procures, places all

 

 

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1    lines of insurance, or administers claims with annual
2    premiums or fees of at least $5,000,000 but not more than
3    $10,000,000.
4        "Legal services" means work performed by a lawyer
5    including, but not limited to, contracts in anticipation
6    of litigation, enforcement actions, or investigations.
7    (3) Each State agency and public institution of higher
8education shall adopt policies that identify its plan and
9implementation procedures for increasing the use of service
10firms owned by minorities, women, and persons with
11disabilities. All plan and implementation procedures for
12increasing the use of service firms owned by minorities,
13women, and persons with disabilities must be submitted to and
14approved by the Commission on Equity and Inclusion on an
15annual basis.
16    (4) Except as provided in subsection (5), the Council
17shall file no later than March 1 of each year an annual report
18to the Governor, the Bureau on Apprenticeship Programs and
19Clean Energy Jobs, and the General Assembly. The report filed
20with the General Assembly shall be filed as required in
21Section 3.1 of the General Assembly Organization Act. This
22report shall: (i) identify the service firms used by each
23State agency and public institution of higher education, (ii)
24identify the actions it has undertaken to increase the use of
25service firms owned by minorities, women, and persons with
26disabilities, including encouraging non-minority-owned firms

 

 

10200HB3666sam001- 547 -LRB102 13525 AMC 28481 a

1to use other service firms owned by minorities, women, and
2persons with disabilities as subcontractors when the
3opportunities arise, (iii) state any recommendations made by
4the Council to each State agency and public institution of
5higher education to increase participation by the use of
6service firms owned by minorities, women, and persons with
7disabilities, and (iv) include the following:
8        (A) For insurance services: the names of the insurance
9    brokers or claims consultants used, the total of risk
10    managed by each State agency and public institution of
11    higher education by insurance brokers, the total
12    commissions, fees paid, or both, the lines or insurance
13    policies placed, and the amount of premiums placed; and
14    the percentage of the risk managed by insurance brokers,
15    the percentage of total commission, fees paid, or both,
16    the lines or insurance policies placed, and the amount of
17    premiums placed with each by the insurance brokers owned
18    by minorities, women, and persons with disabilities by
19    each State agency and public institution of higher
20    education.
21        (B) For investment management services: the names of
22    the investment managers used, the total funds under
23    management of investment managers; the total commissions,
24    fees paid, or both; the total and percentage of funds
25    under management of emerging investment managers owned by
26    minorities, women, and persons with disabilities,

 

 

10200HB3666sam001- 548 -LRB102 13525 AMC 28481 a

1    including the total and percentage of total commissions,
2    fees paid, or both by each State agency and public
3    institution of higher education.
4        (C) The names of service firms, the percentage and
5    total dollar amount paid for professional services by
6    category by each State agency and public institution of
7    higher education.
8        (D) The names of service firms, the percentage and
9    total dollar amount paid for services by category to firms
10    owned by minorities, women, and persons with disabilities
11    by each State agency and public institution of higher
12    education.
13        (E) The total number of contracts awarded for services
14    by category and the total number of contracts awarded to
15    firms owned by minorities, women, and persons with
16    disabilities by each State agency and public institution
17    of higher education.
18    (5) For community college districts, the Business
19Enterprise Council shall only report the following information
20for each community college district: (i) the name of the
21community colleges in the district, (ii) the name and contact
22information of a person at each community college appointed to
23be the single point of contact for vendors owned by
24minorities, women, or persons with disabilities, (iii) the
25policy of the community college district concerning certified
26vendors, (iv) the certifications recognized by the community

 

 

10200HB3666sam001- 549 -LRB102 13525 AMC 28481 a

1college district for determining whether a business is owned
2or controlled by a minority, woman, or person with a
3disability, (v) outreach efforts conducted by the community
4college district to increase the use of certified vendors,
5(vi) the total expenditures by the community college district
6in the prior fiscal year in the divisions of work specified in
7paragraphs (a), (b), and (c) of subsection (1) of this Section
8and the amount paid to certified vendors in those divisions of
9work, and (vii) the total number of contracts entered into for
10the divisions of work specified in paragraphs (a), (b), and
11(c) of subsection (1) of this Section and the total number of
12contracts awarded to certified vendors providing these
13services to the community college district. The Business
14Enterprise Council shall not make any utilization reports
15under this Act for community college districts for Fiscal Year
162015 and Fiscal Year 2016, but shall make the report required
17by this subsection for Fiscal Year 2017 and for each fiscal
18year thereafter. The Business Enterprise Council shall report
19the information in items (i), (ii), (iii), and (iv) of this
20subsection beginning in September of 2016. The Business
21Enterprise Council may collect the data needed to make its
22report from the Illinois Community College Board.
23    (6) The status of the utilization of services shall be
24discussed at each of the regularly scheduled Business
25Enterprise Council meetings. Time shall be allotted for the
26Council to receive, review, and discuss the progress of the

 

 

10200HB3666sam001- 550 -LRB102 13525 AMC 28481 a

1use of service firms owned by minorities, women, and persons
2with disabilities by each State agency and public institution
3of higher education; and any evidence regarding past or
4present racial, ethnic, or gender-based discrimination which
5directly impacts a State agency or public institution of
6higher education contracting with such firms. If after
7reviewing such evidence the Council finds that there is or has
8been such discrimination against a specific group, race or
9sex, the Council shall establish sheltered markets or adjust
10existing sheltered markets tailored to address the Council's
11specific findings for the divisions of work specified in
12paragraphs (a), (b), and (c) of subsection (1) of this
13Section.
14(Source: P.A. 101-170, eff. 1-1-20; 101-657, Article 5,
15Section 5-10, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
16effective date of P.A. 101-657, Article 5, Section 5-10);
17101-657, Article 40, Section 40-130, eff. 1-1-22; 102-29, eff.
186-25-21.)
 
19    (30 ILCS 575/7)  (from Ch. 127, par. 132.607)
20    (Text of Section before amendment by P.A. 101-657)
21    (Section scheduled to be repealed on June 30, 2024)
22    Sec. 7. Exemptions; waivers; publication of data.
23    (1) Individual contract exemptions. The Council, at the
24written request of the affected agency, public institution of
25higher education, or recipient of a grant or loan of State

 

 

10200HB3666sam001- 551 -LRB102 13525 AMC 28481 a

1funds of $250,000 or more complying with Section 45 of the
2State Finance Act, may permit an individual contract or
3contract package, (related contracts being bid or awarded
4simultaneously for the same project or improvements) be made
5wholly or partially exempt from State contracting goals for
6businesses owned by minorities, women, and persons with
7disabilities prior to the advertisement for bids or
8solicitation of proposals whenever there has been a
9determination, reduced to writing and based on the best
10information available at the time of the determination, that
11there is an insufficient number of businesses owned by
12minorities, women, and persons with disabilities to ensure
13adequate competition and an expectation of reasonable prices
14on bids or proposals solicited for the individual contract or
15contract package in question. Any such exemptions shall be
16given by the Council to the Bureau on Apprenticeship Programs
17and Clean Energy Jobs.
18        (a) Written request for contract exemption. A written
19    request for an individual contract exemption must include,
20    but is not limited to, the following:
21            (i) a list of eligible businesses owned by
22        minorities, women, and persons with disabilities;
23            (ii) a clear demonstration that the number of
24        eligible businesses identified in subparagraph (i)
25        above is insufficient to ensure adequate competition;
26            (iii) the difference in cost between the contract

 

 

10200HB3666sam001- 552 -LRB102 13525 AMC 28481 a

1        proposals being offered by businesses owned by
2        minorities, women, and persons with disabilities and
3        the agency or public institution of higher education's
4        expectations of reasonable prices on bids or proposals
5        within that class; and
6            (iv) a list of eligible businesses owned by
7        minorities, women, and persons with disabilities that
8        the contractor has used in the current and prior
9        fiscal years.
10        (b) Determination. The Council's determination
11    concerning an individual contract exemption must consider,
12    at a minimum, the following:
13            (i) the justification for the requested exemption,
14        including whether diligent efforts were undertaken to
15        identify and solicit eligible businesses owned by
16        minorities, women, and persons with disabilities;
17            (ii) the total number of exemptions granted to the
18        affected agency, public institution of higher
19        education, or recipient of a grant or loan of State
20        funds of $250,000 or more complying with Section 45 of
21        the State Finance Act that have been granted by the
22        Council in the current and prior fiscal years; and
23            (iii) the percentage of contracts awarded by the
24        agency or public institution of higher education to
25        eligible businesses owned by minorities, women, and
26        persons with disabilities in the current and prior

 

 

10200HB3666sam001- 553 -LRB102 13525 AMC 28481 a

1        fiscal years.
2    (2) Class exemptions.
3        (a) Creation. The Council, at the written request of
4    the affected agency or public institution of higher
5    education, may permit an entire class of contracts be made
6    exempt from State contracting goals for businesses owned
7    by minorities, women, and persons with disabilities
8    whenever there has been a determination, reduced to
9    writing and based on the best information available at the
10    time of the determination, that there is an insufficient
11    number of qualified businesses owned by minorities, women,
12    and persons with disabilities to ensure adequate
13    competition and an expectation of reasonable prices on
14    bids or proposals within that class. Any such exemption
15    shall be given by the Council to the Bureau on
16    Apprenticeship Programs and Clean Energy Jobs.
17        (a-1) Written request for class exemption. A written
18    request for a class exemption must include, but is not
19    limited to, the following:
20            (i) a list of eligible businesses owned by
21        minorities, women, and persons with disabilities;
22            (ii) a clear demonstration that the number of
23        eligible businesses identified in subparagraph (i)
24        above is insufficient to ensure adequate competition;
25            (iii) the difference in cost between the contract
26        proposals being offered by eligible businesses owned

 

 

10200HB3666sam001- 554 -LRB102 13525 AMC 28481 a

1        by minorities, women, and persons with disabilities
2        and the agency or public institution of higher
3        education's expectations of reasonable prices on bids
4        or proposals within that class; and
5            (iv) the number of class exemptions the affected
6        agency or public institution of higher education
7        requested in the current and prior fiscal years.
8        (a-2) Determination. The Council's determination
9    concerning class exemptions must consider, at a minimum,
10    the following:
11            (i) the justification for the requested exemption,
12        including whether diligent efforts were undertaken to
13        identify and solicit eligible businesses owned by
14        minorities, women, and persons with disabilities;
15            (ii) the total number of class exemptions granted
16        to the requesting agency or public institution of
17        higher education that have been granted by the Council
18        in the current and prior fiscal years; and
19            (iii) the percentage of contracts awarded by the
20        agency or public institution of higher education to
21        eligible businesses owned by minorities, women, and
22        persons with disabilities the current and prior fiscal
23        years.
24        (b) Limitation. Any such class exemption shall not be
25    permitted for a period of more than one year at a time.
26    (3) Waivers. Where a particular contract requires a

 

 

10200HB3666sam001- 555 -LRB102 13525 AMC 28481 a

1contractor to meet a goal established pursuant to this Act,
2the contractor shall have the right to request a waiver from
3such requirements. The Council shall grant the waiver where
4the contractor demonstrates that there has been made a good
5faith effort to comply with the goals for participation by
6businesses owned by minorities, women, and persons with
7disabilities. Any such waiver shall also be transmitted in
8writing to the Bureau on Apprenticeship Programs and Clean
9Energy Jobs.
10        (a) Request for waiver. A contractor's request for a
11    waiver under this subsection (3) must include, but is not
12    limited to, the following, if available:
13            (i) a list of eligible businesses owned by
14        minorities, women, and persons with disabilities that
15        pertain to the class of contracts in the requested
16        waiver;
17            (ii) a clear demonstration that the number of
18        eligible businesses identified in subparagraph (i)
19        above is insufficient to ensure competition;
20            (iii) the difference in cost between the contract
21        proposals being offered by businesses owned by
22        minorities, women, and persons with disabilities and
23        the agency or the public institution of higher
24        education's expectations of reasonable prices on bids
25        or proposals within that class; and
26            (iv) a list of businesses owned by minorities,

 

 

10200HB3666sam001- 556 -LRB102 13525 AMC 28481 a

1        women, and persons with disabilities that the
2        contractor has used in the current and prior fiscal
3        years.
4        (b) Determination. The Council's determination
5    concerning waivers must include following:
6            (i) the justification for the requested waiver,
7        including whether the requesting contractor made a
8        good faith effort to identify and solicit eligible
9        businesses owned by minorities, women, and persons
10        with disabilities;
11            (ii) the total number of waivers the contractor
12        has been granted by the Council in the current and
13        prior fiscal years;
14            (iii) the percentage of contracts awarded by the
15        agency or public institution of higher education to
16        eligible businesses owned by minorities, women, and
17        persons with disabilities in the current and prior
18        fiscal years; and
19            (iv) the contractor's use of businesses owned by
20        minorities, women, and persons with disabilities in
21        the current and prior fiscal years.
22    (3.5) (Blank).
23    (4) Conflict with other laws. In the event that any State
24contract, which otherwise would be subject to the provisions
25of this Act, is or becomes subject to federal laws or
26regulations which conflict with the provisions of this Act or

 

 

10200HB3666sam001- 557 -LRB102 13525 AMC 28481 a

1actions of the State taken pursuant hereto, the provisions of
2the federal laws or regulations shall apply and the contract
3shall be interpreted and enforced accordingly.
4    (5) Each chief procurement officer, as defined in the
5Illinois Procurement Code, shall maintain on his or her
6official Internet website a database of the following: (i)
7waivers granted under this Section with respect to contracts
8under his or her jurisdiction; (ii) a State agency or public
9institution of higher education's written request for an
10exemption of an individual contract or an entire class of
11contracts; and (iii) the Council's written determination
12granting or denying a request for an exemption of an
13individual contract or an entire class of contracts. The
14database, which shall be updated periodically as necessary,
15shall be searchable by contractor name and by contracting
16State agency.
17    (6) Each chief procurement officer, as defined by the
18Illinois Procurement Code, shall maintain on its website a
19list of all firms that have been prohibited from bidding,
20offering, or entering into a contract with the State of
21Illinois as a result of violations of this Act.
22    Each public notice required by law of the award of a State
23contract shall include for each bid or offer submitted for
24that contract the following: (i) the bidder's or offeror's
25name, (ii) the bid amount, (iii) the name or names of the
26certified firms identified in the bidder's or offeror's

 

 

10200HB3666sam001- 558 -LRB102 13525 AMC 28481 a

1submitted utilization plan, and (iv) the bid's amount and
2percentage of the contract awarded to businesses owned by
3minorities, women, and persons with disabilities identified in
4the utilization plan.
5(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20;
6101-601, eff. 1-1-20; 102-29, eff. 6-25-21.)
 
7    (Text of Section after amendment by P.A. 101-657)
8    (Section scheduled to be repealed on June 30, 2024)
9    Sec. 7. Exemptions; waivers; publication of data.
10    (1) Individual contract exemptions. The Council, at the
11written request of the affected agency, public institution of
12higher education, or recipient of a grant or loan of State
13funds of $250,000 or more complying with Section 45 of the
14State Finance Act, may permit an individual contract or
15contract package, (related contracts being bid or awarded
16simultaneously for the same project or improvements) be made
17wholly or partially exempt from State contracting goals for
18businesses owned by minorities, women, and persons with
19disabilities prior to the advertisement for bids or
20solicitation of proposals whenever there has been a
21determination, reduced to writing and based on the best
22information available at the time of the determination, that
23there is an insufficient number of businesses owned by
24minorities, women, and persons with disabilities to ensure
25adequate competition and an expectation of reasonable prices

 

 

10200HB3666sam001- 559 -LRB102 13525 AMC 28481 a

1on bids or proposals solicited for the individual contract or
2contract package in question. Any such exemptions shall be
3given by the Council to the Bureau on Apprenticeship Programs
4and Clean Energy Jobs.
5        (a) Written request for contract exemption. A written
6    request for an individual contract exemption must include,
7    but is not limited to, the following:
8            (i) a list of eligible businesses owned by
9        minorities, women, and persons with disabilities;
10            (ii) a clear demonstration that the number of
11        eligible businesses identified in subparagraph (i)
12        above is insufficient to ensure adequate competition;
13            (iii) the difference in cost between the contract
14        proposals being offered by businesses owned by
15        minorities, women, and persons with disabilities and
16        the agency or public institution of higher education's
17        expectations of reasonable prices on bids or proposals
18        within that class; and
19            (iv) a list of eligible businesses owned by
20        minorities, women, and persons with disabilities that
21        the contractor has used in the current and prior
22        fiscal years.
23        (b) Determination. The Council's determination
24    concerning an individual contract exemption must consider,
25    at a minimum, the following:
26            (i) the justification for the requested exemption,

 

 

10200HB3666sam001- 560 -LRB102 13525 AMC 28481 a

1        including whether diligent efforts were undertaken to
2        identify and solicit eligible businesses owned by
3        minorities, women, and persons with disabilities;
4            (ii) the total number of exemptions granted to the
5        affected agency, public institution of higher
6        education, or recipient of a grant or loan of State
7        funds of $250,000 or more complying with Section 45 of
8        the State Finance Act that have been granted by the
9        Council in the current and prior fiscal years; and
10            (iii) the percentage of contracts awarded by the
11        agency or public institution of higher education to
12        eligible businesses owned by minorities, women, and
13        persons with disabilities in the current and prior
14        fiscal years.
15    (2) Class exemptions.
16        (a) Creation. The Council, at the written request of
17    the affected agency or public institution of higher
18    education, may permit an entire class of contracts be made
19    exempt from State contracting goals for businesses owned
20    by minorities, women, and persons with disabilities
21    whenever there has been a determination, reduced to
22    writing and based on the best information available at the
23    time of the determination, that there is an insufficient
24    number of qualified businesses owned by minorities, women,
25    and persons with disabilities to ensure adequate
26    competition and an expectation of reasonable prices on

 

 

10200HB3666sam001- 561 -LRB102 13525 AMC 28481 a

1    bids or proposals within that class. Any such exemption
2    shall be given by the Council to the Bureau on
3    Apprenticeship Programs and Clean Energy Jobs.
4        (a-1) Written request for class exemption. A written
5    request for a class exemption must include, but is not
6    limited to, the following:
7            (i) a list of eligible businesses owned by
8        minorities, women, and persons with disabilities;
9            (ii) a clear demonstration that the number of
10        eligible businesses identified in subparagraph (i)
11        above is insufficient to ensure adequate competition;
12            (iii) the difference in cost between the contract
13        proposals being offered by eligible businesses owned
14        by minorities, women, and persons with disabilities
15        and the agency or public institution of higher
16        education's expectations of reasonable prices on bids
17        or proposals within that class; and
18            (iv) the number of class exemptions the affected
19        agency or public institution of higher education
20        requested in the current and prior fiscal years.
21        (a-2) Determination. The Council's determination
22    concerning class exemptions must consider, at a minimum,
23    the following:
24            (i) the justification for the requested exemption,
25        including whether diligent efforts were undertaken to
26        identify and solicit eligible businesses owned by

 

 

10200HB3666sam001- 562 -LRB102 13525 AMC 28481 a

1        minorities, women, and persons with disabilities;
2            (ii) the total number of class exemptions granted
3        to the requesting agency or public institution of
4        higher education that have been granted by the Council
5        in the current and prior fiscal years; and
6            (iii) the percentage of contracts awarded by the
7        agency or public institution of higher education to
8        eligible businesses owned by minorities, women, and
9        persons with disabilities the current and prior fiscal
10        years.
11        (b) Limitation. Any such class exemption shall not be
12    permitted for a period of more than one year at a time.
13    (3) Waivers. Where a particular contract requires a
14contractor to meet a goal established pursuant to this Act,
15the contractor shall have the right to request a waiver from
16such requirements prior to the contract award. The Council
17shall grant the waiver when the contractor demonstrates that
18there has been made a good faith effort to comply with the
19goals for participation by businesses owned by minorities,
20women, and persons with disabilities. Any such waiver shall
21also be transmitted in writing to the Bureau on Apprenticeship
22Programs and Clean Energy Jobs.
23        (a) Request for waiver. A contractor's request for a
24    waiver under this subsection (3) must include, but is not
25    limited to, the following, if available:
26            (i) a list of eligible businesses owned by

 

 

10200HB3666sam001- 563 -LRB102 13525 AMC 28481 a

1        minorities, women, and persons with disabilities that
2        pertain to the scope of work of the contract. Eligible
3        businesses are only eligible if the business is
4        certified for the products or work advertised in the
5        solicitation;
6            (ii) (blank);
7            (iia) a clear demonstration that the contractor
8        selected portions of the work to be performed by
9        eligible businesses owned by minorities, women, and
10        persons with disabilities, solicited through all
11        reasonable and available means eligible businesses,
12        and negotiated in good faith with interested eligible
13        businesses;
14            (iib) documentation demonstrating that businesses
15        owned by minorities, women, and persons with
16        disabilities are not rejected as being unqualified
17        without sound reasons based on a thorough
18        investigation of their capabilities;
19            (iii) documentation demonstrating that the
20        contract proposals being offered by businesses owned
21        by minorities, women, and persons with disabilities
22        are excessive or unreasonable; and
23            (iv) a list of businesses owned by minorities,
24        women, and persons with disabilities that the
25        contractor has used in the current and prior fiscal
26        years.

 

 

10200HB3666sam001- 564 -LRB102 13525 AMC 28481 a

1        (b) Determination. The Council's determination
2    concerning waivers must include following:
3            (i) the justification for the requested waiver,
4        including whether the requesting contractor made a
5        good faith effort to identify and solicit eligible
6        businesses owned by minorities, women, and persons
7        with disabilities;
8            (ii) the total number of waivers the contractor
9        has been granted by the Council in the current and
10        prior fiscal years;
11            (iii) (blank); and
12            (iv) the contractor's use of businesses owned by
13        minorities, women, and persons with disabilities in
14        the current and prior fiscal years.
15    (3.5) (Blank).
16    (4) Conflict with other laws. In the event that any State
17contract, which otherwise would be subject to the provisions
18of this Act, is or becomes subject to federal laws or
19regulations which conflict with the provisions of this Act or
20actions of the State taken pursuant hereto, the provisions of
21the federal laws or regulations shall apply and the contract
22shall be interpreted and enforced accordingly.
23    (5) Each chief procurement officer, as defined in the
24Illinois Procurement Code, shall maintain on his or her
25official Internet website a database of the following: (i)
26waivers granted under this Section with respect to contracts

 

 

10200HB3666sam001- 565 -LRB102 13525 AMC 28481 a

1under his or her jurisdiction; (ii) a State agency or public
2institution of higher education's written request for an
3exemption of an individual contract or an entire class of
4contracts; and (iii) the Council's written determination
5granting or denying a request for an exemption of an
6individual contract or an entire class of contracts. The
7database, which shall be updated periodically as necessary,
8shall be searchable by contractor name and by contracting
9State agency.
10    (6) Each chief procurement officer, as defined by the
11Illinois Procurement Code, shall maintain on its website a
12list of all firms that have been prohibited from bidding,
13offering, or entering into a contract with the State of
14Illinois as a result of violations of this Act.
15    Each public notice required by law of the award of a State
16contract shall include for each bid or offer submitted for
17that contract the following: (i) the bidder's or offeror's
18name, (ii) the bid amount, (iii) the name or names of the
19certified firms identified in the bidder's or offeror's
20submitted utilization plan, and (iv) the bid's amount and
21percentage of the contract awarded to businesses owned by
22minorities, women, and persons with disabilities identified in
23the utilization plan.
24(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
25101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)
 

 

 

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1    (35 ILCS 5/206 rep.)
2    Section 90-37. The Illinois Income Tax Act is amended by
3repealing Section 206.
 
4    Section 90-38. The Gas Use Tax Law is amended by changing
5Section 5-10 as follows:
 
6    (35 ILCS 173/5-10)
7    Sec. 5-10. Imposition of tax.
8    (a) Beginning October 1, 2003, a tax is imposed upon the
9privilege of using in this State gas obtained in a purchase of
10out-of-state gas at the rate of 2.4 cents per therm or 5% of
11the purchase price for the billing period, whichever is the
12lower rate. Such tax rate shall be referred to as the
13"self-assessing purchaser tax rate". Beginning with bills
14issued by delivering suppliers on and after October 1, 2003,
15purchasers may elect an alternative tax rate of 2.4 cents per
16therm to be paid under the provisions of Section 5-15 of this
17Law to a delivering supplier maintaining a place of business
18in this State. Such tax rate shall be referred to as the
19"alternate tax rate". The tax imposed under this Section shall
20not apply to gas used by business enterprises certified under
21Section 9-222.1 of the Public Utilities Act, as amended, to
22the extent of such exemption and during the period of time
23specified by the Department of Commerce and Economic
24Opportunity.

 

 

10200HB3666sam001- 567 -LRB102 13525 AMC 28481 a

1    (b) The General Assembly finds it is reasonable to reduce
2the rate of tax on gas purchased for use in the manufacturing
3process because such reduction has the potential to create and
4preserve well-paid jobs in the State. The tax imposed under
5subsection (a) of this Section applies to gas used by any
6eligible business enterprise at a rate of 2.4 cents per therm
7or 2.5% of the purchase price for the billing period,
8whichever is the lower rate. For purposes of this Section,
9"eligible business enterprise" means any business enterprise
10with one of the following Standard Industrial Classifications,
11as designated in the Standard Industrial Classification Manual
12prepared by the federal Office of Management and Budget: 10;
1312; 13; 14; 21; 22; 23; 24; 25; 26; 27; 28; 29; 30; 31; 32; 33;
1434; 35; 36; 37; 38; or 39.
15(Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
 
16    Section 90-39. The Property Tax Code is amended by
17changing Sections 10-5 and 10-610 as follows:
 
18    (35 ILCS 200/10-5)
19    Sec. 10-5. Solar energy systems; definitions. It is the
20policy of this State that the use of solar energy systems
21should be encouraged because they conserve nonrenewable
22resources, reduce pollution and promote the health and
23well-being of the people of this State, and should be valued in
24relation to these benefits.

 

 

10200HB3666sam001- 568 -LRB102 13525 AMC 28481 a

1    (a) "Solar energy" means radiant energy received from the
2sun at wave lengths suitable for heat transfer, photosynthetic
3use, or photovoltaic use.
4    (b) "Solar collector" means
5        (1) An assembly, structure, or design, including
6    passive elements, used for gathering, concentrating, or
7    absorbing direct and indirect solar energy, specially
8    designed for holding a substantial amount of useful
9    thermal energy and to transfer that energy to a gas,
10    solid, or liquid or to use that energy directly; or
11        (2) A mechanism that absorbs solar energy and converts
12    it into electricity; or
13        (3) A mechanism or process used for gathering solar
14    energy through wind or thermal gradients; or
15        (4) A component used to transfer thermal energy to a
16    gas, solid, or liquid, or to convert it into electricity.
17    (c) "Solar storage mechanism" means equipment or elements
18(such as piping and transfer mechanisms, containers, heat
19exchangers, or controls thereof, and gases, solids, liquids,
20or combinations thereof) that are utilized for storing solar
21energy, gathered by a solar collector, for subsequent use.
22    (d) "Solar energy system" means
23        (1)(A) A complete assembly, structure, or design of
24    solar collector, or a solar storage mechanism, which uses
25    solar energy for generating electricity that is primarily
26    consumed on the property on which the solar energy system

 

 

10200HB3666sam001- 569 -LRB102 13525 AMC 28481 a

1    resides, or for heating or cooling gases, solids, liquids,
2    or other materials for the primary benefit of the property
3    on which the solar energy system resides;
4        (B) The design, materials, or elements of a system and
5    its maintenance, operation, and labor components, and the
6    necessary components, if any, of supplemental conventional
7    energy systems designed or constructed to interface with a
8    solar energy system; and
9        (C) Any legal, financial, or institutional orders,
10    certificates, or mechanisms, including easements, leases,
11    and agreements, required to ensure continued access to
12    solar energy, its source, or its use in a solar energy
13    system, and including monitoring and educational elements
14    of a demonstration project; or .
15        (D) Photovoltaic electricity generation systems
16    subject to power purchase agreements or leases for solar
17    energy between a third-party owner, an operator, or both,
18    and an end user of electricity, where such systems are
19    located on the end user of electricity's side of the
20    electric meter and which primarily are used to offset the
21    electricity load of the end user behind whose electric
22    meter the system is connected. A system primarily is used
23    to offset the electricity load of the end user of
24    electricity if the system is estimated to produce 110% or
25    fewer kilowatt-hours of electricity than consumed by the
26    end user of electricity at such meter in the last 12 full

 

 

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1    months prior to the system being placed in service.
2        (2) "Solar energy system" does not include:
3            (A) Distribution equipment that is equally usable
4        in a conventional energy system except for those
5        components of the equipment that are necessary for
6        meeting the requirements of efficient solar energy
7        utilization;
8            (B) Components of a solar energy system that serve
9        structural, insulating, protective, shading,
10        aesthetic, or other non-solar energy utilization
11        purposes, as defined in the regulations of the
12        Department of Commerce and Economic Opportunity; or
13        and
14            (C) A commercial solar energy system, as defined
15        by this Code, in counties with fewer than 3,000,000
16        inhabitants.
17        (3) The solar energy system shall conform to the
18    standards for those systems established by regulation of
19    the Department of Commerce and Economic Opportunity.
20(Source: P.A. 100-781, eff. 8-10-18.)
 
21    (35 ILCS 200/10-610)
22    Sec. 10-610. Applicability.
23    (a) The provisions of this Division apply for assessment
24years 2007 through 2035 2021.
25    (b) The provisions of this Division do not apply to wind

 

 

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1energy devices that are owned by any person or entity that is
2otherwise exempt from taxation under the Property Tax Code.
3(Source: P.A. 99-825, eff. 8-16-16.)
 
4    Section 90-40. The Gas Revenue Tax Act is amended by
5changing Section 2 as follows:
 
6    (35 ILCS 615/2)  (from Ch. 120, par. 467.17)
7    Sec. 2. (a) A tax is imposed upon persons engaged in the
8business of distributing, supplying, furnishing or selling gas
9to persons for use or consumption and not for resale at the
10rate of 2.4 cents per therm of all gas which is so distributed,
11supplied, furnished, sold or transported to or for each
12customer in the course of such business, or 5% of the gross
13receipts received from each customer from such business,
14whichever is the lower rate as applied to each customer for
15that customer's billing period, provided that any change in
16rate imposed by this amendatory Act of 1985 shall become
17effective only with bills having a meter reading date on or
18after January 1, 1986. However, such taxes are not imposed
19with respect to any business in interstate commerce, or
20otherwise to the extent to which such business may not, under
21the Constitution and statutes of the United States, be made
22the subject of taxation by this State.
23    (b) The General Assembly finds it is reasonable to reduce
24the rate of tax on gas purchased for use in the manufacturing

 

 

10200HB3666sam001- 572 -LRB102 13525 AMC 28481 a

1process because such reduction has the potential to create and
2preserve well-paid jobs in the State. The tax imposed under
3subsection (a) of this Section applies to gas used by any
4eligible business enterprise at a rate of 2.4 cents per therm
5or 2.5% of the purchase price for the billing period,
6whichever is the lower rate. For purposes of this Section,
7"eligible business enterprise" means any business enterprise
8with one of the following Standard Industrial Classifications,
9as designated in the Standard Industrial Classification Manual
10prepared by the federal Office of Management and Budget: 10;
1112; 13; 14; 21; 22; 23; 24; 25; 26; 27; 28; 29; 30; 31; 32; 33;
1234; 35; 36; 37; 38; or 39.
13    (c) Nothing in this amendatory Act of 1985 shall impose a
14tax with respect to any transaction with respect to which no
15tax was imposed immediately preceding the effective date of
16this amendatory Act of 1985.
17    (d) Beginning with bills issued to customers on and after
18October 1, 2003, no tax shall be imposed under this Act on
19transactions with customers who incur a tax liability under
20the Gas Use Tax Law.
21(Source: P.A. 93-31, eff. 10-1-03.)
 
22    Section 90-41. The Electricity Excise Tax Law is amended
23by changing Sections 2-2 and 2-4 as follows:
 
24    (35 ILCS 640/2-2)

 

 

10200HB3666sam001- 573 -LRB102 13525 AMC 28481 a

1    Sec. 2-2. Findings and intent.
2    (a) The General Assembly finds that the deregulation and
3restructuring of the electric utility industry in this State
4mandated and implemented by this amendatory Act of 1997,
5including the unbundling of services and the authorization of
6competition in the provision of those services such that
7consumers may in the future transact with multiple providers
8to obtain the services that were formerly provided by a single
9franchised monopoly supplier of electricity, renders the
10system of taxation embodied in the Public Utilities Revenue
11Act impracticable and infeasible. The General Assembly further
12finds that the deregulation and restructuring of the electric
13utility industry necessitate changes to the existing system of
14taxation in order to preserve revenue neutrality in tax
15collections for the State of Illinois, to avoid placing any
16supplier engaged in the business of distributing, supplying,
17furnishing, selling, transmitting or delivering electricity at
18a competitive disadvantage, to minimize additional
19administrative costs and burdens of collection, and to avoid
20the imposition of increased tax burdens on individual
21consumers of electricity, particularly residential electric
22users virtually all of whom, pursuant to Section 2 of the
23Public Utilities Revenue Act, presently bear the economic
24burden of the tax imposed thereunder at the rate of .32 cents
25per kilowatt-hour distributed, supplied, furnished, sold,
26transmitted or delivered to them. The General Assembly further

 

 

10200HB3666sam001- 574 -LRB102 13525 AMC 28481 a

1finds that to change the current rates at which
2non-residential users bear the economic burden of the Public
3Utilities Revenue Tax, thereby resulting in increases in the
4amount of tax for which non-residential users bear the
5economic burden, could impose additional cost burdens on
6businesses in this State and adversely affect economic
7development and business retention in Illinois unless such
8users are provided options for paying an excise tax on the
9basis of purchase price. The General Assembly therefore finds
10that there is a compelling public need to modify the system of
11taxation embodied in the Public Utilities Revenue Act by
12repealing the tax imposed by Section 2 of that Act and imposing
13this electricity excise tax so as to:
14        (1) Impose the electricity excise tax on the privilege
15    of electric use measured by the kilowatt-hours delivered
16    to the purchaser;
17        (2) As part of this amendatory Act of 1997, repeal the
18    tax imposed by Section 2-202 of the Public Utilities Act
19    as applicable to electric utilities and establish the
20    rates of tax imposed under the electricity excise tax in
21    order to collect substantially the same amount of revenue
22    as was collected under Section 2-202 of that Act; and
23        (3) Allow non-residential consumers of electricity to
24    elect to register with the Department of Revenue as
25    self-assessing purchasers and to pay the electricity
26    excise tax directly to the Department at a rate which is

 

 

10200HB3666sam001- 575 -LRB102 13525 AMC 28481 a

1    established as a percentage of such consumer's purchase
2    price for electricity distributed, supplied, furnished,
3    sold, transmitted or delivered to the purchaser.
4    (b) The General Assembly further finds that it is
5reasonable to reduce the rate of tax on electricity purchased
6for use in the manufacturing process because such reduction
7has the potential to create and preserve well-paid jobs in the
8State.
9(Source: P.A. 90-561, eff. 8-1-98.)
 
10    (35 ILCS 640/2-4)
11    Sec. 2-4. Tax imposed.
12    (a) Except as provided in subsection (b), a tax is imposed
13on the privilege of using in this State electricity purchased
14for use or consumption and not for resale, other than by
15municipal corporations owning and operating a local
16transportation system for public service, at the following
17rates per kilowatt-hour delivered to the purchaser:
18        (i) For the first 2000 kilowatt-hours used or consumed
19    in a month: 0.330 cents per kilowatt-hour;
20        (ii) For the next 48,000 kilowatt-hours used or
21    consumed in a month: 0.319 cents per kilowatt-hour;
22        (iii) For the next 50,000 kilowatt-hours used or
23    consumed in a month: 0.303 cents per kilowatt-hour;
24        (iv) For the next 400,000 kilowatt-hours used or
25    consumed in a month: 0.297 cents per kilowatt-hour;

 

 

10200HB3666sam001- 576 -LRB102 13525 AMC 28481 a

1        (v) For the next 500,000 kilowatt-hours used or
2    consumed in a month: 0.286 cents per kilowatt-hour;
3        (vi) For the next 2,000,000 kilowatt-hours used or
4    consumed in a month: 0.270 cents per kilowatt-hour;
5        (vii) For the next 2,000,000 kilowatt-hours used or
6    consumed in a month: 0.254 cents per kilowatt-hour;
7        (viii) For the next 5,000,000 kilowatt-hours used or
8    consumed in a month: 0.233 cents per kilowatt-hour;
9        (ix) For the next 10,000,000 kilowatt-hours used or
10    consumed in a month: 0.207 cents per kilowatt-hour;
11        (x) For all electricity in excess of 20,000,000
12    kilowatt-hours used or consumed in a month: 0.202 cents
13    per kilowatt-hour.
14    Provided, that in lieu of the foregoing rates, the tax is
15imposed on a self-assessing purchaser that is not an eligible
16business enterprise at the rate of 5.1% of the self-assessing
17purchaser's purchase price for all electricity distributed,
18supplied, furnished, sold, transmitted and delivered to the
19self-assessing purchaser in a month. The tax is imposed on a
20self-assessing purchaser that is an eligible business
21enterprise at the rate of 2.55% of the self-assessing
22purchaser's price for all electricity distributed, supplied,
23furnished, sold, transmitted, and delivered to the
24self-assessing purchaser in a month. For purposes of this
25Section, "eligible business enterprise" means any business
26enterprise with one of the following Standard Industrial

 

 

10200HB3666sam001- 577 -LRB102 13525 AMC 28481 a

1Classifications, as designated in the Standard Industrial
2Classification Manual prepared by the federal Office of
3Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26;
427; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
5    (b) A tax is imposed on the privilege of using in this
6State electricity purchased from a municipal system or
7electric cooperative, as defined in Article XVII of the Public
8Utilities Act, which has not made an election as permitted by
9either Section 17-200 or Section 17-300 of such Act, at the
10lesser of 0.32 cents per kilowatt hour of all electricity
11distributed, supplied, furnished, sold, transmitted, and
12delivered by such municipal system or electric cooperative to
13the purchaser or 5% of each such purchaser's purchase price
14for all electricity distributed, supplied, furnished, sold,
15transmitted, and delivered by such municipal system or
16electric cooperative to the purchaser, whichever is the lower
17rate as applied to each purchaser in each billing period.
18    (c) The tax imposed by this Section 2-4 is not imposed with
19respect to any use of electricity by business enterprises
20certified under Section 9-222.1 or 9-222.1A of the Public
21Utilities Act, as amended, to the extent of such exemption and
22during the time specified by the Department of Commerce and
23Economic Opportunity; or with respect to any transaction in
24interstate commerce, or otherwise, to the extent to which such
25transaction may not, under the Constitution and statutes of
26the United States, be made the subject of taxation by this

 

 

10200HB3666sam001- 578 -LRB102 13525 AMC 28481 a

1State.
2(Source: P.A. 94-793, eff. 5-19-06.)
 
3    Section 90-43. The School Code is amended by changing
4Section 10-22.11 as follows:
 
5    (105 ILCS 5/10-22.11)  (from Ch. 122, par. 10-22.11)
6    Sec. 10-22.11. Lease of school property.
7    (a) To lease school property to another school district,
8municipality or body politic and corporate for a term of not to
9exceed 25 years, except as otherwise provided in this Section,
10and upon such terms and conditions as may be agreed if in the
11opinion of the school board use of such property will not be
12needed by the district during the term of such lease;
13provided, the school board shall not make or renew any lease
14for a term longer than 10 years, nor alter the terms of any
15lease whose unexpired term may exceed 10 years without the
16vote of 2/3 of the full membership of the board.
17    (b) Whenever the school board considers such action
18advisable and in the best interests of the school district, to
19lease vacant school property for a period not exceeding 51
20years to a private not for profit school organization for use
21in the care of persons with a mental disability who are
22trainable and educable in the district or in the education of
23the gifted children in the district. Before leasing such
24property to a private not for profit school organization, the

 

 

10200HB3666sam001- 579 -LRB102 13525 AMC 28481 a

1school board must adopt a resolution for the leasing of such
2property, fixing the period and price therefor, and order
3submitted to referendum at an election to be held in the
4district as provided in the general election law, the question
5of whether the lease should be entered into. Thereupon, the
6secretary shall certify to the proper election authorities the
7proposition for submission in accordance with the general
8election law. If the majority of the voters voting upon the
9proposition vote in favor of the leasing, the school board may
10proceed with the leasing. The proposition shall be in
11substantially the following form:
12-------------------------------------------------------------
13    Shall School District No. ..... of
14..... County, Illinois lease to            YES
15..... (here name and identify the
16lessee) the following described vacant  ---------------------
17school property (here describe the
18property) for a term of ..... years        NO
19for the sum of ..... Dollars?
20-------------------------------------------------------------
21    This paragraph (b) shall not be construed in such a manner
22as to relieve the responsibility of the Board of Education as
23set out in Article 14 of the School Code.
24    (c) To lease school buildings and land to suitable lessees
25for educational purposes or for any other purpose which serves
26the interests of the community, for a term not to exceed 25

 

 

10200HB3666sam001- 580 -LRB102 13525 AMC 28481 a

1years and upon such terms and conditions as may be agreed upon
2by the parties, when such buildings and land are declared by
3the board to be unnecessary or unsuitable or inconvenient for
4a school or the uses of the district during the term of the
5lease and when, in the opinion of the board, the best interests
6of the residents of the school district will be enhanced by
7entering into such a lease. Such leases shall include
8provisions for adequate insurance for both liability and
9property damage or loss, and reasonable charges for
10maintenance and depreciation of such buildings and land.
11    (d) Notwithstanding any other provision to the contrary, a
12lease for vacant school property may exceed 25 years for
13renewable energy resources, as defined in Section 1-10 of the
14Illinois Power Agency Act.
15(Source: P.A. 99-143, eff. 7-27-15.)
 
16    Section 90-45. The University of Illinois Act is amended
17by adding Section 120 as follows:
 
18    (110 ILCS 305/120 new)
19    Sec. 120. Carbon capture, utilization, and storage report.
20    (a) Subject to appropriation, the Prairie Research
21Institute at the University of Illinois at Urbana-Champaign,
22in consultation with an intergovernmental advisory committee,
23must file a report on the potential for carbon capture,
24utilization, and storage as a climate mitigation technology

 

 

10200HB3666sam001- 581 -LRB102 13525 AMC 28481 a

1throughout Illinois with the Governor and the General Assembly
2no later than December 31, 2022. The report shall provide an
3assessment of Illinois subsurface storage resources, a
4description of existing and selected subsurface storage
5projects, and best practices for carbon storage. Additionally,
6the report shall provide recommendations for policy and
7regulatory needs at the State level based on its findings, and
8shall, at a minimum, address all the following areas:
9        (1) carbon capture, utilization, and storage current
10    status and future storage resource potential in the State.
11    Enhanced Oil Recovery shall remain outside the scope of
12    this study;
13        (2) procedures, standards, and safeguards for the
14    storage of carbon dioxide;
15        (3) permitting processes and the coordination with
16    applicable federal law or regulatory commissions,
17    including the Class VI injection well permitting process;
18        (4) economic impact, job creation, and job retention
19    from carbon capture, utilization, and storage that both
20    protects the environment and supports short-term and
21    long-term economic growth;
22        (5) development of knowledge capacity of appropriate
23    State agencies and stakeholders;
24        (6) environmental justice and stakeholder issues
25    related to carbon capture, utilization, and storage
26    throughout the State;

 

 

10200HB3666sam001- 582 -LRB102 13525 AMC 28481 a

1        (7) leveraging federal policies and public-private
2    partnerships for research, design, and development to
3    benefit the State;
4        (8) liability for the storage and monitoring
5    maintenance of the carbon dioxide after the completion of
6    a carbon capture, utilization, and storage project;
7        (9) acquisition, ownership, and amalgamation of pore
8    space for carbon capture, utilization, and storage;
9        (10) methodologies to establish any necessary fees,
10    costs, or offsets; and
11        (11) any risks to health, safety, the environment, and
12    property uses or values.
13    (b) In developing the report under this Section, the
14Prairie Research Institute shall form an advisory committee,
15which shall be composed of all the following members:
16        (1) the Director of the Environmental Protection
17    Agency, or his or her designee;
18        (2) the Director of Natural Resources, or his or her
19    designee;
20        (3) the Director of Commerce and Economic Opportunity,
21    or his or her designee;
22        (4) the Director of the Illinois Emergency Management
23    Agency, or his or her designee;
24        (5) the Director of Agriculture, or his or her
25    designee;
26        (6) the Attorney General, or his or her designee;

 

 

10200HB3666sam001- 583 -LRB102 13525 AMC 28481 a

1        (7) one member of the Senate, appointed by the
2    President of the Senate;
3        (8) one member of the House of Representatives,
4    appointed by the Speaker of the House of Representatives;
5        (9) one member of the Senate, appointed by the
6    Minority Leader of the Senate; and
7        (10) one member of the House of Representatives,
8    appointed by the Minority Leader of the House of
9    Representatives.
10    (c) No later than 60 days after the effective date of this
11amendatory Act of the 102nd General Assembly, the advisory
12committee shall hold its first meeting at the call of the
13Executive Director of the Prairie Research Institute, at which
14meeting the members shall select a chairperson from among
15themselves. After its first meeting, the committee shall meet
16at the call of the chairperson. Members of the committee shall
17serve without compensation. The Prairie Research Committee
18shall provide administrative support to the committee.
19    (d) The Prairie Research Institute shall also engage with
20interested stakeholders throughout the State to gain insights
21into socio-economic perspectives from environmental justice
22organizations, environmental non-governmental organizations,
23industry, landowners, farm bureaus, manufacturing, labor
24unions, and others.
25    (e) This Section is repealed on January 1, 2023.
 

 

 

10200HB3666sam001- 584 -LRB102 13525 AMC 28481 a

1    Section 90-50. The Public Utilities Act is amended by
2changing Sections 5-117, 8-103B, 8-406, 9-241, 16-107.5,
316-107.6, 16-108, 16-111.5, and 16-127 and by adding Sections
44-604, 4-604.5, 4-605, 8-201.8, 8-201.10, 8-218, 8-402.2,
58-512, 9-228, 9-229, 16-105.5, 16-105.6, 16-105.7, 16-105.10,
616-105.17, 16-108.18, 16-108.19, 16-108.20, 16-108.21,
716-108.25, 16-108.30, 16-111.10, 16-135, and 17-900 as
8follows:
 
9    (220 ILCS 5/4-604 new)
10    Sec. 4-604. Electric and gas public utilities ethical
11conduct and transparency.
12    (a) It is the policy of this State that, as regulated,
13monopoly entities providing essential services, public
14utilities must adhere to the highest standards of ethical
15conduct. It is in the public interest to ensure ethical public
16utility conduct of the highest standards. It is therefore
17necessary for the public interest, safety, and welfare of the
18State and of public utility customers to develop rigorous
19ethical standards and scrutinize and limit public utility
20actions, expenditures, and contracting. It is also necessary
21to provide increased transparency to ensure ethical public
22utility conduct.
23    (b) The standards set forth in this Section and the
24Illinois Administrative Code rules implementing this Section
25shall apply, to the extent practicable, to electric and gas

 

 

10200HB3666sam001- 585 -LRB102 13525 AMC 28481 a

1public utilities and their holding or parent companies,
2affiliates, and service companies.
3    (c) Public Utility Ethics and Compliance Monitor. To
4ensure that public utilities meet the highest level of ethical
5standards, including, but not limited to, those standards
6established in this Section, the Commission shall, within 60
7days after the effective date of this amendatory Act of the
8102nd General Assembly, establish an Ethics and Accountability
9Division at the Commission and shall create a new position of
10Public Utility Ethics and Compliance Monitor who reports to
11the Executive Director of the Commission. The role of the
12Public Utility Ethics and Compliance Monitor shall be to
13oversee electric and gas public utilities' compliance with the
14standards established in this Section, the Illinois
15Administrative Code, and any other regulatory or statutory
16obligation regarding standards of ethical conduct. The
17responsibilities of the Public Utility Ethics and Compliance
18Monitor shall include:
19        (1) Hiring additional staff for the Ethics and
20    Accountability Division, as deemed necessary to fulfill
21    the duties imposed under this Section.
22        (2) Overseeing each public utility's Chief Compliance
23    and Ethics Officer's monitoring, auditing, investigation,
24    enforcement, reporting, disciplinary activities, and any
25    other actions required of the Chief Compliance and Ethics
26    Officer pursuant to subsection (d) of this Section. If the

 

 

10200HB3666sam001- 586 -LRB102 13525 AMC 28481 a

1    Public Utility Ethics and Compliance Monitor finds a
2    public utility has not complied with the standards set
3    forth in this Section, or with administrative rules
4    implementing this Section, the Public Utility Ethics and
5    Compliance Monitor shall detail such deficiencies in a
6    report to the Commission and shall include a
7    recommendation for Commission action.
8        (3) Documenting violations of the standards in this
9    Section or in related Sections of the Illinois
10    Administrative Code and, in coordination with the
11    utility's Chief Compliance and Ethics Officer, ensuring
12    each public utility administers appropriate internal
13    disciplinary actions and provides transparent reporting to
14    the Commission. If there are violations of the standards
15    in this Section or in related Sections of the Illinois
16    Administrative Code where the public utility does not take
17    disciplinary action or where that action is not aligned
18    with the recommendation of the Public Utility Ethics and
19    Compliance Monitor, the Public Utility Ethics and
20    Compliance Monitor shall, within 30 days, report the
21    violation, the recommended disciplinary action, and the
22    public utility's actual disciplinary action, to the
23    Executive Director of the Commission. Such reports shall
24    be included in the annual ethics report required by
25    paragraph (5) of this subsection (c) and must describe the
26    violation and related recommendations.

 

 

10200HB3666sam001- 587 -LRB102 13525 AMC 28481 a

1        (4) Reviewing and keeping informed regarding internal
2    controls, code of ethical conduct, practices, procedures,
3    and conduct of each public utility. The Public Utilities
4    Ethics and Compliance Monitor may recommend any new
5    internal controls, policies, practices or procedures the
6    public utility should undertake in order to ensure
7    compliance with this Section and with relevant Sections of
8    the Illinois Administrative Code.
9        (5) Publishing an annual ethics audit for each
10    electric and gas public utility describing the public
11    utility's internal controls, policies, practices, and
12    procedures to comply with statutes, rules, court orders,
13    or other applicable authority. The report shall include a
14    record of any disciplinary actions taken related to
15    unethical conduct as well as any recommendations made by
16    the Public Utility Ethics and Compliance Monitor and the
17    public utility's response to each recommendation. This
18    report must be made public and the Commission may make
19    necessary redactions.
20        (6) Monitoring, auditing, and subpoenaing all records
21    necessary for the Public Utility Ethics and Compliance
22    Monitor to meet the responsibilities imposed under this
23    Section and related rules, including, but not limited to,
24    contracts with third party entities, accounting records,
25    communication with public officials or their staff,
26    lobbying activities, expenses on lobbyists and

 

 

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1    consultants, legal expenses, and internal compliance
2    policies.
3    (d)(1) No later than 60 days after the effective date of
4this amendatory Act of the 102nd General Assembly, each public
5utility shall establish a position of Chief Ethics and
6Compliance Officer if such position does not already exist
7within the utility or at an affiliated company, provided that
8if the position exists at an affiliated company such
9individual may be designated to serve in this role for the
10utility. The Chief Ethics and Compliance Officer shall be
11responsible for ensuring that the public utility complies with
12the highest standards of ethical conduct, including, but not
13limited to, complying with the standards imposed under this
14Section, those adopted pursuant to a rulemaking authorized by
15this Section, and other applicable requirements of Illinois
16law and rules.
17    (2) Each public utility's Chief Ethics and Compliance
18Officer shall:
19        (A) oversee creation and implementation of a code of
20    ethical conduct for the public utility, applicable to all
21    directors, officers, employees, and lobbyists of the
22    public utility, as well as to all contractors,
23    consultants, agents, vendors, and business partners of the
24    public utility in connection with their activities with or
25    on behalf of the public utility;
26        (B) oversee training for public utility directors,

 

 

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1    officers, and employees, as well as contractors,
2    consultants, lobbyists and political consultants, on the
3    public utility's code of ethical conduct, practices, and
4    procedures to advise agents, vendors, and business
5    partners of the public utility of the applicability of the
6    code of ethical conduct to their activities with or on
7    behalf of the public utility;
8        (C) oversee the ongoing monitoring of all contractors,
9    consultants, and vendors who are contracted for the
10    purpose of carrying out lobbying activities to ensure
11    their continued compliance with applicable ethical
12    standards;
13        (D) at least annually, oversee a review of the public
14    utility's internal controls, code of ethical conduct,
15    practices, and procedures to assess their continued
16    effectiveness to ensure the highest standards of ethical
17    conduct among the public utility's directors, officers,
18    employees, contractors, consultants, lobbyists, vendors,
19    agents and business partners; and
20        (E) maintain records of all conduct determined to be
21    in violation of Illinois law, rules, and regulations, and
22    the utility's response to that conduct, and make such
23    records available for inspection by the Public Utility
24    Ethics and Compliance Monitor.
25    (e) In addition to those standards established under this
26Section, those adopted pursuant to a rulemaking authorized by

 

 

10200HB3666sam001- 590 -LRB102 13525 AMC 28481 a

1this Section, and other applicable requirements of Illinois
2law and rules, each public utility Chief Ethics and Compliance
3Officer shall oversee and ensure the development and
4implementation of internal controls, policies, and procedures
5to achieve the objectives set forth in paragraphs (1) through
6(3) of this subsection. Such implementation shall begin no
7later than 90 days after the effective date of this amendatory
8Act of the 102nd General Assembly.
9        (1) The hiring of contractors, consultants and vendors
10    for the purpose of carrying out lobbying pursuant to the
11    Lobbyist Registration Act shall be reviewed and approved
12    by the Chief Ethics and Compliance Officer.
13        (2) No agreement between a public utility and a
14    contractor, consultant, or vendor engaged for the purpose
15    of carrying out lobbying pursuant to the Lobbyist
16    Registration Act shall permit that contractor, consultant,
17    or vendor to subcontract any portion of that work.
18        (3) Public utilities shall require contractors,
19    consultants, and vendors who are contracted for the
20    purpose of carrying out lobbying pursuant to the Lobbyist
21    Registration Act to provide detailed invoices and reports
22    describing activities taken and amounts billed for such
23    activities, including all persons involved and anything of
24    value requested or solicited or provided to public
25    officials or their staff, including hiring requests. No
26    such contractor, consultant, or vendor shall be paid

 

 

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1    without having first submitted a detailed invoice or
2    report.
3        For purposes of this Section, "anything of value"
4    includes, but is not limited to, money, gifts,
5    entertainment, hiring referrals and recommendations to the
6    public utility, campaign contributions, vendor referrals,
7    and contributions to charitable organizations solicited by
8    or on behalf of the public official.
9    (f) Each public utility shall be required to submit an
10annual ethics and compliance report to the Commission no later
11than May 1 of each year, beginning May 1, 2022. The utility's
12Chief Ethics and Compliance Officer shall oversee the
13preparation and submission of the report and shall certify it.
14Each report shall describe in detail the public utility's
15internal controls, codes of ethical conduct, practices, and
16procedures. The reporting implemented during the reporting
17period to comply with the standards set forth in this Section,
18rules adopted by the Commission, and other applicable
19requirements of Illinois law and rules. Each report shall also
20identify any material changes implemented to such internal
21controls, code of ethical conduct, practices, and procedures
22during the reporting period, as well as any material changes
23implemented, or anticipated to be implemented, in the calendar
24year in which the report is filed. Each report shall, for the
25applicable reporting period include at least the following
26information:

 

 

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1        (1) a summary and description of the public utility's
2    system of financial and accounting procedures, internal
3    controls, and practices, including an explanation of how
4    this system is reasonably designed to ensure the
5    maintenance of fair and accurate books, records, and
6    accounts and to provide reasonable assurances that
7    transactions are recorded as necessary to permit
8    preparation of financial statements in conformity with
9    generally accepted accounting principles and Commission
10    requirements and to maintain accountability for assets;
11        (2) a summary and description of the public utility's
12    process for conducting an assessment of ethics and
13    compliance risks and a representation that an assessment
14    was conducted in accordance with those risks and shared
15    with the public utility's senior management and board of
16    directors;
17        (3) a summary of the public utility's implementation
18    of mechanisms, including, but not limited to, training
19    programs designed to ensure that its internal controls,
20    code of ethical conduct, practices, and procedures are
21    effectively communicated to all directors, officers,
22    employees, contractors, consultants, lobbyists, vendors,
23    agents, and business partners;
24        (4) a summary of the public utility's efforts to
25    ensure that its directors and senior management provide
26    strong, explicit, and visible support and commitment to

 

 

10200HB3666sam001- 593 -LRB102 13525 AMC 28481 a

1    its corporate policy against violations of federal and
2    State law;
3        (5) a summary of the public utility's implementation
4    of mechanisms designed to effectively enforce its internal
5    controls, code of ethical conduct, practices, and
6    procedures, including appropriately providing incentives
7    for compliance, disciplining violators, and applying such
8    code, controls, policies, practices, and procedures
9    consistently and fairly regardless of the position held
10    by, or the importance of, the director, officer, or
11    employee; and
12        (6) a summary of the public utility's implementation
13    of procedures to ensure that, where misconduct is
14    discovered, reasonable steps are taken to remedy the harm
15    resulting from such misconduct, including disciplinary
16    action, logging the conduct and the utility's response as
17    required by item (E) of paragraph (2) of subsection (d) of
18    this Section and assessing and modifying as appropriate
19    the internal controls, code, policies, practices and
20    procedures necessary to ensure that the compliance program
21    is effective.
22        For purposes of this Section, "reporting period" means
23    the most recent 12-month calendar year period preceding
24    the applicable May 1 annual report filing date.
25    (g) Notwithstanding the provisions of this Section, the
26Commission shall initiate a management audit pursuant to

 

 

10200HB3666sam001- 594 -LRB102 13525 AMC 28481 a

1Section 8-102 of this Act by the later of 18 months after the
2effective date of this amendatory Act of the 102nd General
3Assembly or 18 months after a conviction or a plea or agreement
4of each public utility that, on or after January 1, 2020, has
5been found guilty or entered a guilty plea regarding any
6felony offense or has entered into a Deferred Prosecution
7Agreement for a felony offense. Such audit shall address, at a
8minimum, the topics identified in paragraphs (1) through (6)
9of subsection (f).
10    (h) Each public utility that files a report pursuant to
11subsection (f) must submit the specified filing fee at the
12time the Chief Clerk of the Commission accepts the filing. The
13filing fees applicable to each annual report are as follows:
14$15,000 for public utilities that serve fewer than 100,000
15customers in the State; $75,000 for public utilities that
16serve at least 100,000 customers but not more than 500,000
17customers in the State; $200,000 for public utilities that
18serve at least 500,000 customers in the State but not more than
193,000,000; and $500,000 for public utilities that serve at
20least 3,000,000 customers in the State.
21    (i) In the event the Public Utility Ethics and Compliance
22Monitor finds a public utility does not comply with any
23portion of this Section, or with the rules adopted under this
24Section, the Public Utility Ethics and Compliance Monitor
25shall issue a Report to the Commission detailing the public
26utility's deficiencies. The Commission shall have authority to

 

 

10200HB3666sam001- 595 -LRB102 13525 AMC 28481 a

1open an investigation and shall order remediation and
2penalties, including fines, as appropriate.
3    (j) Each year, each public utility in the State shall
4remit amounts necessary for the Commission to pay the wages,
5overhead, travel expenses, and other costs of the Public
6Utility Ethics and Compliance Monitor. The public utility
7shall remit payment to the Commission in an amount determined
8by the Commission based on that public utility's proportional
9share, by number of customers.
10    (k) A public utility's cost of compliance with this
11Section is not a cost of service and shall not be recoverable
12in rates.
13    (l) The costs of a public utility that arise from a
14criminal investigation or result from an investigation
15initiated by the Commission as the result of an ethics
16violation are not costs of service and shall not be
17recoverable in rates.
18    (m) The Commission shall have the authority to adopt rules
19and emergency rules where applicable to implement this
20Section.
 
21    (220 ILCS 5/4-604.5 new)
22    Sec. 4-604.5. Restitution for misconduct.
23    (a) It is the policy of this State that public utility
24ethical and criminal misconduct shall not be tolerated. The
25General Assembly finds it necessary to collect restitution, to

 

 

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1be distributed as described in subsection (e), from a public
2utility that has been found guilty of violations of criminal
3law or that has entered into a Deferred Prosecution Agreement
4that details violations of criminal law that result in harm to
5ratepayers.
6    (b) In light of such violations, the Illinois Commerce
7Commission shall, within 150 days after the effective date of
8this amendatory Act of the 102nd General Assembly, initiate an
9investigation as to whether Commonwealth Edison collected,
10spent, allocated, transferred, remitted, or caused in any
11other way to be expended ratepayer funds in connection with
12the conduct detailed in the Deferred Prosecution Agreement of
13July 16, 2020 between the United States Attorney for the
14Northern District of Illinois and Commonwealth Edison. The
15investigation shall also determine whether any ratepayer funds
16were used to pay the criminal penalty agreed to in the Deferred
17Prosecution Agreement. The investigation shall determine
18whether the public utility collected, spent, allocated,
19transferred, remitted, or caused in any other way to be
20expended ratepayer funds that were not lawfully recoverable
21through rates, and which should accordingly be refunded to
22ratepayers and calculate such benefits to initiate a refund to
23ratepayers as a result of such conduct. The investigation
24shall conclude no later than 330 days following initiation and
25shall be conducted as a contested case, as defined in Section
261-30 of the Illinois Administrative Procedure Act.

 

 

10200HB3666sam001- 597 -LRB102 13525 AMC 28481 a

1    (c) If regulated entities are found guilty of criminal
2conduct, the Commission may initiate an investigation, impose
3penalties, order restitution and such other remedies it deems
4necessary, and initiate refunds to ratepayers as described in
5subsection (b). Such investigation and proceeding may commence
6within 150 days of a finding of guilt. Any funds collected
7pursuant to this subsection shall be distributed as described
8in subsection (e). The Commission may order any other remedies
9it deems necessary.
10    (d) Pursuant to subsection (e), the investigation shall
11calculate a schedule for remittance to State funds and to
12ratepayers, over a period of no more than 4 years, to be paid
13by the public utility from profits, returns, or shareholder
14dollars. No costs related to the investigation or contested
15proceeding authorized by this Section, restitution, or refunds
16may be recoverable through rates.
17    (e) Funds collected pursuant to this Section, for the
18purposes of restitution, shall be repaid by the public utility
19as a per therm or per-kilowatt-hour credit to the public
20utility's ratepayers as a separate line item on the utility
21bill.
22    (f) No public utility may use ratepayer funds to pay a
23criminal penalty imposed by any local, State, or federal law
24enforcement entity or court.
25    (g) Any penalties, restitution, refunds, or remedies
26provided for in this Section are in addition to and not a

 

 

10200HB3666sam001- 598 -LRB102 13525 AMC 28481 a

1substitution for other remedies that may be provided for by
2law.
 
3    (220 ILCS 5/4-605 new)
4    Sec. 4-605. Reliability mitigation plan findings. The
5General Assembly finds that reducing carbon dioxide and
6copollutant emissions in a manner that does not threaten
7electric reliability and resource adequacy is essential to the
8health and safety of all Illinois citizens. Therefore, the
9Commission shall review reliability mitigation plans filed
10pursuant to Section 9.15 of the Environmental Protection Act
11to ensure adequate, reliable, affordable, efficient, and
12environmentally sustainable electric service is available to
13ratepayers by approving reliability mitigation plans that
14permit the Illinois Pollution Control Board to enforce
15emission reductions in a manner that preserves reliability and
16resource adequacy in wholesale and retail electricity markets.
 
17    (220 ILCS 5/5-117)
18    Sec. 5-117. Supplier diversity goals.
19    (a) The public policy of this State is to collaboratively
20work with companies that serve Illinois residents to improve
21their supplier diversity in a non-antagonistic manner.
22    (b) The Commission shall require all gas, electric, and
23water companies with at least 100,000 customers under its
24authority, as well as suppliers of wind energy, solar energy,

 

 

10200HB3666sam001- 599 -LRB102 13525 AMC 28481 a

1hydroelectricity, nuclear energy, and any other supplier of
2energy within this State other than wind energy and solar
3energy required to comply with the reporting requirements
4under Section 1505-215 of the Department of Labor Law of the
5Civil Administrative Code of Illinois, to submit an annual
6report by April 15, 2015 and every April 15 thereafter, in a
7searchable Adobe PDF format, on all procurement goals and
8actual spending for female-owned, minority-owned,
9veteran-owned, and small business enterprises in the previous
10calendar year. These goals shall be expressed as a percentage
11of the total work performed by the entity submitting the
12report, and the actual spending for all female-owned,
13minority-owned, veteran-owned, and small business enterprises
14shall also be expressed as a percentage of the total work
15performed by the entity submitting the report.
16    (c) Each participating company in its annual report shall
17include the following information:
18        (1) an explanation of the plan for the next year to
19    increase participation;
20        (2) an explanation of the plan to increase the goals;
21        (3) the areas of procurement each company shall be
22    actively seeking more participation in in the next year;
23        (4) an outline of the plan to alert and encourage
24    potential vendors in that area to seek business from the
25    company;
26        (5) an explanation of the challenges faced in finding

 

 

10200HB3666sam001- 600 -LRB102 13525 AMC 28481 a

1    quality vendors and offer any suggestions for what the
2    Commission could do to be helpful to identify those
3    vendors;
4        (6) a list of the certifications the company
5    recognizes;
6        (7) the point of contact for any potential vendor who
7    wishes to do business with the company and explain the
8    process for a vendor to enroll with the company as a
9    minority-owned, women-owned, or veteran-owned company; and
10        (8) any particular success stories to encourage other
11    companies to emulate best practices.
12    (d) Each annual report shall include as much
13State-specific data as possible. If the submitting entity does
14not submit State-specific data, then the company shall include
15any national data it does have and explain why it could not
16submit State-specific data and how it intends to do so in
17future reports, if possible.
18    (e) Each annual report shall include the rules,
19regulations, and definitions used for the procurement goals in
20the company's annual report.
21    (f) The Commission and all participating entities shall
22hold an annual workshop open to the public in 2015 and every
23year thereafter on the state of supplier diversity to
24collaboratively seek solutions to structural impediments to
25achieving stated goals, including testimony from each
26participating entity as well as subject matter experts and

 

 

10200HB3666sam001- 601 -LRB102 13525 AMC 28481 a

1advocates. The Commission shall publish a database on its
2website of the point of contact for each participating entity
3for supplier diversity, along with a list of certifications
4each company recognizes from the information submitted in each
5annual report. The Commission shall publish each annual report
6on its website and shall maintain each annual report for at
7least 5 years.
8(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17;
9revised 7-22-19.)
 
10    (220 ILCS 5/8-103B)
11    Sec. 8-103B. Energy efficiency and demand-response
12measures.
13    (a) It is the policy of the State that electric utilities
14are required to use cost-effective energy efficiency and
15demand-response measures to reduce delivery load. Requiring
16investment in cost-effective energy efficiency and
17demand-response measures will reduce direct and indirect costs
18to consumers by decreasing environmental impacts and by
19avoiding or delaying the need for new generation,
20transmission, and distribution infrastructure. It serves the
21public interest to allow electric utilities to recover costs
22for reasonably and prudently incurred expenditures for energy
23efficiency and demand-response measures. As used in this
24Section, "cost-effective" means that the measures satisfy the
25total resource cost test. The low-income measures described in

 

 

10200HB3666sam001- 602 -LRB102 13525 AMC 28481 a

1subsection (c) of this Section shall not be required to meet
2the total resource cost test. For purposes of this Section,
3the terms "energy-efficiency", "demand-response", "electric
4utility", and "total resource cost test" have the meanings set
5forth in the Illinois Power Agency Act. "Black, indigenous,
6and people of color" and "BIPOC" means people who are members
7of the groups described in subparagraphs (a) through (e) of
8paragraph (A) of subsection (1) of Section 2 of the Business
9Enterprise for Minorities, Women, and Persons with
10Disabilities Act.
11    (a-5) This Section applies to electric utilities serving
12more than 500,000 retail customers in the State for those
13multi-year plans commencing after December 31, 2017.
14    (b) For purposes of this Section, electric utilities
15subject to this Section that serve more than 3,000,000 retail
16customers in the State shall be deemed to have achieved a
17cumulative persisting annual savings of 6.6% from energy
18efficiency measures and programs implemented during the period
19beginning January 1, 2012 and ending December 31, 2017, which
20percent is based on the deemed average weather normalized
21sales of electric power and energy during calendar years 2014,
222015, and 2016 of 88,000,000 MWhs. For the purposes of this
23subsection (b) and subsection (b-5), the 88,000,000 MWhs of
24deemed electric power and energy sales shall be reduced by the
25number of MWhs equal to the sum of the annual consumption of
26customers that have opted out of are exempt from subsections

 

 

10200HB3666sam001- 603 -LRB102 13525 AMC 28481 a

1(a) through (j) of this Section under paragraph (1) of
2subsection (l) of this Section, as averaged across the
3calendar years 2014, 2015, and 2016. After 2017, the deemed
4value of cumulative persisting annual savings from energy
5efficiency measures and programs implemented during the period
6beginning January 1, 2012 and ending December 31, 2017, shall
7be reduced each year, as follows, and the applicable value
8shall be applied to and count toward the utility's achievement
9of the cumulative persisting annual savings goals set forth in
10subsection (b-5):
11        (1) 5.8% deemed cumulative persisting annual savings
12    for the year ending December 31, 2018;
13        (2) 5.2% deemed cumulative persisting annual savings
14    for the year ending December 31, 2019;
15        (3) 4.5% deemed cumulative persisting annual savings
16    for the year ending December 31, 2020;
17        (4) 4.0% deemed cumulative persisting annual savings
18    for the year ending December 31, 2021;
19        (5) 3.5% deemed cumulative persisting annual savings
20    for the year ending December 31, 2022;
21        (6) 3.1% deemed cumulative persisting annual savings
22    for the year ending December 31, 2023;
23        (7) 2.8% deemed cumulative persisting annual savings
24    for the year ending December 31, 2024;
25        (8) 2.5% deemed cumulative persisting annual savings
26    for the year ending December 31, 2025;

 

 

10200HB3666sam001- 604 -LRB102 13525 AMC 28481 a

1        (9) 2.3% deemed cumulative persisting annual savings
2    for the year ending December 31, 2026;
3        (10) 2.1% deemed cumulative persisting annual savings
4    for the year ending December 31, 2027;
5        (11) 1.8% deemed cumulative persisting annual savings
6    for the year ending December 31, 2028;
7        (12) 1.7% deemed cumulative persisting annual savings
8    for the year ending December 31, 2029; and
9        (13) 1.5% deemed cumulative persisting annual savings
10    for the year ending December 31, 2030; .
11        (14) 1.3% deemed cumulative persisting annual savings
12    for the year ending December 31, 2031;
13        (15) 1.1% deemed cumulative persisting annual savings
14    for the year ending December 31, 2032;
15        (16) 0.9% deemed cumulative persisting annual savings
16    for the year ending December 31, 2033;
17        (17) 0.7% deemed cumulative persisting annual savings
18    for the year ending December 31, 2034;
19        (18) 0.5% deemed cumulative persisting annual savings
20    for the year ending December 31, 2035;
21        (19) 0.4% deemed cumulative persisting annual savings
22    for the year ending December 31, 2036;
23        (20) 0.3% deemed cumulative persisting annual savings
24    for the year ending December 31, 2037;
25        (21) 0.2% deemed cumulative persisting annual savings
26    for the year ending December 31, 2038;

 

 

10200HB3666sam001- 605 -LRB102 13525 AMC 28481 a

1        (22) 0.1% deemed cumulative persisting annual savings
2    for the year ending December 31, 2039; and
3        (23) 0.0% deemed cumulative persisting annual savings
4    for the year ending December 31, 2040 and all subsequent
5    years.
6    For purposes of this Section, "cumulative persisting
7annual savings" means the total electric energy savings in a
8given year from measures installed in that year or in previous
9years, but no earlier than January 1, 2012, that are still
10operational and providing savings in that year because the
11measures have not yet reached the end of their useful lives.
12    (b-5) Beginning in 2018, electric utilities subject to
13this Section that serve more than 3,000,000 retail customers
14in the State shall achieve the following cumulative persisting
15annual savings goals, as modified by subsection (f) of this
16Section and as compared to the deemed baseline of 88,000,000
17MWhs of electric power and energy sales set forth in
18subsection (b), as reduced by the number of MWhs equal to the
19sum of the annual consumption of customers that have opted out
20of are exempt from subsections (a) through (j) of this Section
21under paragraph (1) of subsection (l) of this Section as
22averaged across the calendar years 2014, 2015, and 2016,
23through the implementation of energy efficiency measures
24during the applicable year and in prior years, but no earlier
25than January 1, 2012:
26        (1) 7.8% cumulative persisting annual savings for the

 

 

10200HB3666sam001- 606 -LRB102 13525 AMC 28481 a

1    year ending December 31, 2018;
2        (2) 9.1% cumulative persisting annual savings for the
3    year ending December 31, 2019;
4        (3) 10.4% cumulative persisting annual savings for the
5    year ending December 31, 2020;
6        (4) 11.8% cumulative persisting annual savings for the
7    year ending December 31, 2021;
8        (5) 13.1% cumulative persisting annual savings for the
9    year ending December 31, 2022;
10        (6) 14.4% cumulative persisting annual savings for the
11    year ending December 31, 2023;
12        (7) 15.7% cumulative persisting annual savings for the
13    year ending December 31, 2024;
14        (8) 17% cumulative persisting annual savings for the
15    year ending December 31, 2025;
16        (9) 17.9% cumulative persisting annual savings for the
17    year ending December 31, 2026;
18        (10) 18.8% cumulative persisting annual savings for
19    the year ending December 31, 2027;
20        (11) 19.7% cumulative persisting annual savings for
21    the year ending December 31, 2028;
22        (12) 20.6% cumulative persisting annual savings for
23    the year ending December 31, 2029; and
24        (13) 21.5% cumulative persisting annual savings for
25    the year ending December 31, 2030.
26    No later than December 31, 2021, the Illinois Commerce

 

 

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1Commission shall establish additional cumulative persisting
2annual savings goals for the years 2031 through 2035. No later
3than December 31, 2024, the Illinois Commerce Commission shall
4establish additional cumulative persisting annual savings
5goals for the years 2036 through 2040. The Commission shall
6also establish additional cumulative persisting annual savings
7goals every 5 years thereafter to ensure that utilities always
8have goals that extend at least 11 years into the future. The
9cumulative persisting annual savings goals beyond the year
102030 shall increase by 0.9 percentage points per year, absent
11a Commission decision to initiate a proceeding to consider
12establishing goals that increase by more or less than that
13amount. Such a proceeding must be conducted in accordance with
14the procedures described in subsection (f) of this Section. If
15such a proceeding is initiated, the cumulative persisting
16annual savings goals established by the Commission through
17that proceeding shall reflect the Commission's best estimate
18of the maximum amount of additional savings that are forecast
19to be cost-effectively achievable unless such best estimates
20would result in goals that represent less than 0.5 percentage
21point annual increases in total cumulative persisting annual
22savings. The Commission may only establish goals that
23represent less than 0.5 percentage point annual increases in
24cumulative persisting annual savings if it can demonstrate,
25based on clear and convincing evidence and through independent
26analysis, that 0.5 percentage point increases are not

 

 

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1cost-effectively achievable. The Commission shall inform its
2decision based on an energy efficiency potential study that
3conforms to the requirements of this Section.
4    (b-10) For purposes of this Section, electric utilities
5subject to this Section that serve less than 3,000,000 retail
6customers but more than 500,000 retail customers in the State
7shall be deemed to have achieved a cumulative persisting
8annual savings of 6.6% from energy efficiency measures and
9programs implemented during the period beginning January 1,
102012 and ending December 31, 2017, which is based on the deemed
11average weather normalized sales of electric power and energy
12during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
13For the purposes of this subsection (b-10) and subsection
14(b-15), the 36,900,000 MWhs of deemed electric power and
15energy sales shall be reduced by the number of MWhs equal to
16the sum of the annual consumption of customers that have opted
17out of are exempt from subsections (a) through (j) of this
18Section under paragraph (1) of subsection (l) of this Section,
19as averaged across the calendar years 2014, 2015, and 2016.
20After 2017, the deemed value of cumulative persisting annual
21savings from energy efficiency measures and programs
22implemented during the period beginning January 1, 2012 and
23ending December 31, 2017, shall be reduced each year, as
24follows, and the applicable value shall be applied to and
25count toward the utility's achievement of the cumulative
26persisting annual savings goals set forth in subsection

 

 

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1(b-15):
2        (1) 5.8% deemed cumulative persisting annual savings
3    for the year ending December 31, 2018;
4        (2) 5.2% deemed cumulative persisting annual savings
5    for the year ending December 31, 2019;
6        (3) 4.5% deemed cumulative persisting annual savings
7    for the year ending December 31, 2020;
8        (4) 4.0% deemed cumulative persisting annual savings
9    for the year ending December 31, 2021;
10        (5) 3.5% deemed cumulative persisting annual savings
11    for the year ending December 31, 2022;
12        (6) 3.1% deemed cumulative persisting annual savings
13    for the year ending December 31, 2023;
14        (7) 2.8% deemed cumulative persisting annual savings
15    for the year ending December 31, 2024;
16        (8) 2.5% deemed cumulative persisting annual savings
17    for the year ending December 31, 2025;
18        (9) 2.3% deemed cumulative persisting annual savings
19    for the year ending December 31, 2026;
20        (10) 2.1% deemed cumulative persisting annual savings
21    for the year ending December 31, 2027;
22        (11) 1.8% deemed cumulative persisting annual savings
23    for the year ending December 31, 2028;
24        (12) 1.7% deemed cumulative persisting annual savings
25    for the year ending December 31, 2029; and
26        (13) 1.5% deemed cumulative persisting annual savings

 

 

10200HB3666sam001- 610 -LRB102 13525 AMC 28481 a

1    for the year ending December 31, 2030; .
2        (14) 1.3% deemed cumulative persisting annual savings
3    for the year ending December 31, 2031;
4        (15) 1.1% deemed cumulative persisting annual savings
5    for the year ending December 31, 2032;
6        (16) 0.9% deemed cumulative persisting annual savings
7    for the year ending December 31, 2033;
8        (17) 0.7% deemed cumulative persisting annual savings
9    for the year ending December 31, 2034;
10        (18) 0.5% deemed cumulative persisting annual savings
11    for the year ending December 31, 2035;
12        (19) 0.4% deemed cumulative persisting annual savings
13    for the year ending December 31, 2036;
14        (20) 0.3% deemed cumulative persisting annual savings
15    for the year ending December 31, 2037;
16        (21) 0.2% deemed cumulative persisting annual savings
17    for the year ending December 31, 2038;
18        (22) 0.1% deemed cumulative persisting annual savings
19    for the year ending December 31, 2039; and
20        (23) 0.0% deemed cumulative persisting annual savings
21    for the year ending December 31, 2040 and all subsequent
22    years.
23    (b-15) Beginning in 2018, electric utilities subject to
24this Section that serve less than 3,000,000 retail customers
25but more than 500,000 retail customers in the State shall
26achieve the following cumulative persisting annual savings

 

 

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1goals, as modified by subsection (b-20) and subsection (f) of
2this Section and as compared to the deemed baseline as reduced
3by the number of MWhs equal to the sum of the annual
4consumption of customers that have opted out of are exempt
5from subsections (a) through (j) of this Section under
6paragraph (1) of subsection (l) of this Section as averaged
7across the calendar years 2014, 2015, and 2016, through the
8implementation of energy efficiency measures during the
9applicable year and in prior years, but no earlier than
10January 1, 2012:
11        (1) 7.4% cumulative persisting annual savings for the
12    year ending December 31, 2018;
13        (2) 8.2% cumulative persisting annual savings for the
14    year ending December 31, 2019;
15        (3) 9.0% cumulative persisting annual savings for the
16    year ending December 31, 2020;
17        (4) 9.8% cumulative persisting annual savings for the
18    year ending December 31, 2021;
19        (5) 10.6% cumulative persisting annual savings for the
20    year ending December 31, 2022;
21        (6) 11.4% cumulative persisting annual savings for the
22    year ending December 31, 2023;
23        (7) 12.2% cumulative persisting annual savings for the
24    year ending December 31, 2024;
25        (8) 13% cumulative persisting annual savings for the
26    year ending December 31, 2025;

 

 

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1        (9) 13.6% cumulative persisting annual savings for the
2    year ending December 31, 2026;
3        (10) 14.2% cumulative persisting annual savings for
4    the year ending December 31, 2027;
5        (11) 14.8% cumulative persisting annual savings for
6    the year ending December 31, 2028;
7        (12) 15.4% cumulative persisting annual savings for
8    the year ending December 31, 2029; and
9        (13) 16% cumulative persisting annual savings for the
10    year ending December 31, 2030.
11    No later than December 31, 2021, the Illinois Commerce
12Commission shall establish additional cumulative persisting
13annual savings goals for the years 2031 through 2035. No later
14than December 31, 2024, the Illinois Commerce Commission shall
15establish additional cumulative persisting annual savings
16goals for the years 2036 through 2040. The Commission shall
17also establish additional cumulative persisting annual savings
18goals every 5 years thereafter to ensure that utilities always
19have goals that extend at least 11 years into the future. The
20cumulative persisting annual savings goals beyond the year
212030 shall increase by 0.6 percentage points per year, absent
22a Commission decision to initiate a proceeding to consider
23establishing goals that increase by more or less than that
24amount. Such a proceeding must be conducted in accordance with
25the procedures described in subsection (f) of this Section. If
26such a proceeding is initiated, the cumulative persisting

 

 

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1annual savings goals established by the Commission through
2that proceeding shall reflect the Commission's best estimate
3of the maximum amount of additional savings that are forecast
4to be cost-effectively achievable unless such best estimates
5would result in goals that represent less than 0.4 percentage
6point annual increases in total cumulative persisting annual
7savings. The Commission may only establish goals that
8represent less than 0.4 percentage point annual increases in
9cumulative persisting annual savings if it can demonstrate,
10based on clear and convincing evidence and through independent
11analysis, that 0.4 percentage point increases are not
12cost-effectively achievable. The Commission shall inform its
13decision based on an energy efficiency potential study that
14conforms to the requirements of this Section.
15    The difference between the cumulative persisting annual
16savings goal for the applicable calendar year and the
17cumulative persisting annual savings goal for the immediately
18preceding calendar year is 0.8% for the period of January 1,
192018 through December 31, 2025 and 0.6% for the period of
20January 1, 2026 through December 31, 2030.
21    (b-20) Each electric utility subject to this Section may
22include cost-effective voltage optimization measures in its
23plans submitted under subsections (f) and (g) of this Section,
24and the costs incurred by a utility to implement the measures
25under a Commission-approved plan shall be recovered under the
26provisions of Article IX or Section 16-108.5 of this Act. For

 

 

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1purposes of this Section, the measure life of voltage
2optimization measures shall be 15 years. The measure life
3period is independent of the depreciation rate of the voltage
4optimization assets deployed. Utilities may claim savings from
5voltage optimization on circuits for more than 15 years if
6they can demonstrate that they have made additional
7investments necessary to enable voltage optimization savings
8to continue beyond 15 years. Such demonstrations must be
9subject to the review of independent evaluation.
10    Within 270 days after June 1, 2017 (the effective date of
11Public Act 99-906), an electric utility that serves less than
123,000,000 retail customers but more than 500,000 retail
13customers in the State shall file a plan with the Commission
14that identifies the cost-effective voltage optimization
15investment the electric utility plans to undertake through
16December 31, 2024. The Commission, after notice and hearing,
17shall approve or approve with modification the plan within 120
18days after the plan's filing and, in the order approving or
19approving with modification the plan, the Commission shall
20adjust the applicable cumulative persisting annual savings
21goals set forth in subsection (b-15) to reflect any amount of
22cost-effective energy savings approved by the Commission that
23is greater than or less than the following cumulative
24persisting annual savings values attributable to voltage
25optimization for the applicable year:
26        (1) 0.0% of cumulative persisting annual savings for

 

 

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1    the year ending December 31, 2018;
2        (2) 0.17% of cumulative persisting annual savings for
3    the year ending December 31, 2019;
4        (3) 0.17% of cumulative persisting annual savings for
5    the year ending December 31, 2020;
6        (4) 0.33% of cumulative persisting annual savings for
7    the year ending December 31, 2021;
8        (5) 0.5% of cumulative persisting annual savings for
9    the year ending December 31, 2022;
10        (6) 0.67% of cumulative persisting annual savings for
11    the year ending December 31, 2023;
12        (7) 0.83% of cumulative persisting annual savings for
13    the year ending December 31, 2024; and
14        (8) 1.0% of cumulative persisting annual savings for
15    the year ending December 31, 2025 and all subsequent
16    years.
17    (b-25) In the event an electric utility jointly offers an
18energy efficiency measure or program with a gas utility under
19plans approved under this Section and Section 8-104 of this
20Act, the electric utility may continue offering the program,
21including the gas energy efficiency measures, in the event the
22gas utility discontinues funding the program. In that event,
23the energy savings value associated with such other fuels
24shall be converted to electric energy savings on an equivalent
25Btu basis for the premises. However, the electric utility
26shall prioritize programs for low-income residential customers

 

 

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1to the extent practicable. An electric utility may recover the
2costs of offering the gas energy efficiency measures under
3this subsection (b-25).
4    For those energy efficiency measures or programs that save
5both electricity and other fuels but are not jointly offered
6with a gas utility under plans approved under this Section and
7Section 8-104 or not offered with an affiliated gas utility
8under paragraph (6) of subsection (f) of Section 8-104 of this
9Act, the electric utility may count savings of fuels other
10than electricity toward the achievement of its annual savings
11goal, and the energy savings value associated with such other
12fuels shall be converted to electric energy savings on an
13equivalent Btu basis at the premises.
14    In no event shall more than 10% of each year's applicable
15annual total savings requirement incremental goal as defined
16in paragraph (7.5) (7) of subsection (g) of this Section be met
17through savings of fuels other than electricity.
18    (b-27) Beginning in 2022, an electric utility may offer
19and promote measures that electrify space heating, water
20heating, cooling, drying, cooking, industrial processes, and
21other building and industrial end uses that would otherwise be
22served by combustion of fossil fuel at the premises, provided
23that the electrification measures reduce total energy
24consumption at the premises. The electric utility may count
25the reduction in energy consumption at the premises toward
26achievement of its annual savings goals. The reduction in

 

 

10200HB3666sam001- 617 -LRB102 13525 AMC 28481 a

1energy consumption at the premises shall be calculated as the
2difference between: (A) the reduction in Btu consumption of
3fossil fuels as a result of electrification, converted to
4kilowatt-hour equivalents by dividing by 3,412 Btu's per
5kilowatt hour; and (B) the increase in kilowatt hours of
6electricity consumption resulting from the displacement of
7fossil fuel consumption as a result of electrification. An
8electric utility may recover the costs of offering and
9promoting electrification measures under this subsection
10(b-27).
11    In no event shall electrification savings counted toward
12each year's applicable annual total savings requirement, as
13defined in paragraph (7.5) of subsection (g) of this Section,
14be greater than:
15        (1) 5% per year for each year from 2022 through 2025;
16        (2) 10% per year for each year from 2026 through 2029;
17    and
18        (3) 15% per year for 2030 and all subsequent years.
19In addition, a minimum of 25% of all electrification savings
20counted toward a utility's applicable annual total savings
21requirement must be from electrification of end uses in
22low-income housing. The limitations on electrification savings
23that may be counted toward a utility's annual savings goals
24are separate from and in addition to the subsection (b-25)
25limitations governing the counting of the other fuel savings
26resulting from efficiency measures and programs.

 

 

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1    As part of the annual informational filing to the
2Commission that is required under paragraph (9) of subsection
3(g) of this Section, each utility shall identify the specific
4electrification measures offered under this subjection (b-27);
5the quantity of each electrification measure that was
6installed by its customers; the average total cost, average
7utility cost, average reduction in fossil fuel consumption,
8and average increase in electricity consumption associated
9with each electrification measure; the portion of
10installations of each electrification measure that were in
11low-income single-family housing, low-income multifamily
12housing, non-low-income single-family housing, non-low-income
13multifamily housing, commercial buildings, and industrial
14facilities; and the quantity of savings associated with each
15measure category in each customer category that are being
16counted toward the utility's applicable annual total savings
17requirement. Prior to installing an electrification measure,
18the utility shall provide a customer with an estimate of the
19impact of the new measure on the customer's average monthly
20electric bill and total annual energy expenses.
21    (c) Electric utilities shall be responsible for overseeing
22the design, development, and filing of energy efficiency plans
23with the Commission and may, as part of that implementation,
24outsource various aspects of program development and
25implementation. A minimum of 10%, for electric utilities that
26serve more than 3,000,000 retail customers in the State, and a

 

 

10200HB3666sam001- 619 -LRB102 13525 AMC 28481 a

1minimum of 7%, for electric utilities that serve less than
23,000,000 retail customers but more than 500,000 retail
3customers in the State, of the utility's entire portfolio
4funding level for a given year shall be used to procure
5cost-effective energy efficiency measures from units of local
6government, municipal corporations, school districts, public
7housing, and community college districts, provided that a
8minimum percentage of available funds shall be used to procure
9energy efficiency from public housing, which percentage shall
10be equal to public housing's share of public building energy
11consumption.
12    The utilities shall also implement energy efficiency
13measures targeted at low-income households, which, for
14purposes of this Section, shall be defined as households at or
15below 80% of area median income, and expenditures to implement
16the measures shall be no less than $40,000,000 $25,000,000 per
17year for electric utilities that serve more than 3,000,000
18retail customers in the State and no less than $13,000,000
19$8,350,000 per year for electric utilities that serve less
20than 3,000,000 retail customers but more than 500,000 retail
21customers in the State. The ratio of spending on efficiency
22programs targeted at low-income multifamily buildings to
23spending on efficiency programs targeted at low-income
24single-family buildings shall be designed to achieve levels of
25savings from each building type that are approximately
26proportional to the magnitude of cost-effective lifetime

 

 

10200HB3666sam001- 620 -LRB102 13525 AMC 28481 a

1savings potential in each building type. Investment in
2low-income whole-building weatherization programs shall
3constitute a minimum of 80% of a utility's total budget
4specifically dedicated to serving low-income customers.
5    The utilities shall work to bundle low-income energy
6efficiency offerings with other programs that serve low-income
7households to maximize the benefits going to these households.
8The utilities shall market and implement low-income energy
9efficiency programs in coordination with low-income assistance
10programs, the Illinois Solar for All Program, and
11weatherization whenever practicable. The program implementer
12shall walk the customer through the enrollment process for any
13programs for which the customer is eligible. The utilities
14shall also pilot targeting customers with high arrearages,
15high energy intensity (ratio of energy usage divided by home
16or unit square footage), or energy assistance programs with
17energy efficiency offerings, and then track reduction in
18arrearages as a result of the targeting. This targeting and
19bundling of low-income energy programs shall be offered to
20both low-income single-family and multifamily customers
21(owners and residents).
22    The utilities shall invest in health and safety measures
23appropriate and necessary for comprehensively weatherizing a
24home or multifamily building, and shall implement a health and
25safety fund of at least 15% of the total income-qualified
26weatherization budget that shall be used for the purpose of

 

 

10200HB3666sam001- 621 -LRB102 13525 AMC 28481 a

1making grants for technical assistance, construction,
2reconstruction, improvement, or repair of buildings to
3facilitate their participation in the energy efficiency
4programs targeted at low-income single-family and multifamily
5households. These funds may also be used for the purpose of
6making grants for technical assistance, construction,
7reconstruction, improvement, or repair of the following
8buildings to facilitate their participation in the energy
9efficiency programs created by this Section: (1) buildings
10that are owned or operated by registered 501(c)(3) public
11charities; and (2) day care centers, day care homes, or group
12day care homes, as defined under 89 Ill. Adm. Code Part 406,
13407, or 408, respectively.
14    Each electric utility shall assess opportunities to
15implement cost-effective energy efficiency measures and
16programs through a public housing authority or authorities
17located in its service territory. If such opportunities are
18identified, the utility shall propose such measures and
19programs to address the opportunities. Expenditures to address
20such opportunities shall be credited toward the minimum
21procurement and expenditure requirements set forth in this
22subsection (c).
23    Implementation of energy efficiency measures and programs
24targeted at low-income households should be contracted, when
25it is practicable, to independent third parties that have
26demonstrated capabilities to serve such households, with a

 

 

10200HB3666sam001- 622 -LRB102 13525 AMC 28481 a

1preference for not-for-profit entities and government agencies
2that have existing relationships with or experience serving
3low-income communities in the State.
4    Each electric utility shall develop and implement
5reporting procedures that address and assist in determining
6the amount of energy savings that can be applied to the
7low-income procurement and expenditure requirements set forth
8in this subsection (c). Each electric utility shall also track
9the types and quantities or volumes of insulation and air
10sealing materials, and their associated energy saving
11benefits, installed in energy efficiency programs targeted at
12low-income single-family and multifamily households.
13    The electric utilities shall participate in also convene a
14low-income energy efficiency accountability advisory committee
15("the committee"), which will directly inform to assist in the
16design, implementation, and evaluation of the low-income and
17public-housing energy efficiency programs. The committee shall
18be comprised of the electric utilities subject to the
19requirements of this Section, the gas utilities subject to the
20requirements of Section 8-104.1 8-104 of this Act, the
21utilities' low-income energy efficiency implementation
22contractors, nonprofit organizations, community action
23agencies, advocacy groups, State and local governmental
24agencies, public-housing organizations, and representatives of
25community-based organizations, especially those living in or
26working with environmental justice communities and BIPOC

 

 

10200HB3666sam001- 623 -LRB102 13525 AMC 28481 a

1communities. The committee shall be composed of 2
2geographically differentiated subcommittees: one for
3stakeholders in northern Illinois and one for stakeholders in
4central and southern Illinois. The subcommittees shall meet
5together at least twice per year.
6    There shall be one statewide leadership committee led by
7and composed of community-based organizations that are
8representative of BIPOC and environmental justice communities
9and that includes equitable representation from BIPOC
10communities. The leadership committee shall be composed of an
11equal number of representatives from the 2 subcommittees. The
12subcommittees shall address specific programs and issues, with
13the leadership committee convening targeted workgroups as
14needed. The leadership committee may elect to work with an
15independent facilitator to solicit and organize feedback,
16recommendations and meeting participation from a wide variety
17of community-based stakeholders. If a facilitator is used,
18they shall be fair and responsive to the needs of all
19stakeholders involved in the committee.
20     All committee meetings must be accessible, with rotating
21locations if meetings are held in-person, virtual
22participation options, and materials and agendas circulated in
23advance.
24    There shall also be opportunities for direct input by
25committee members outside of committee meetings, such as via
26individual meetings, surveys, emails and calls, to ensure

 

 

10200HB3666sam001- 624 -LRB102 13525 AMC 28481 a

1robust participation by stakeholders with limited capacity and
2ability to attend committee meetings. Committee meetings shall
3emphasize opportunities to bundle and coordinate delivery of
4low-income energy efficiency with other programs that serve
5low-income communities, such as the Illinois Solar for All
6Program and bill payment assistance programs. Meetings shall
7include educational opportunities for stakeholders to learn
8more about these additional offerings, and the committee shall
9assist in figuring out the best methods for coordinated
10delivery and implementation of offerings when serving
11low-income communities. The committee shall directly and
12equitably influence and inform utility low-income and
13public-housing energy efficiency programs and priorities.
14Participating utilities shall implement recommendations from
15the committee whenever possible.
16    Participating utilities shall track and report how input
17from the committee has led to new approaches and changes in
18their energy efficiency portfolios. This reporting shall occur
19at committee meetings and in quarterly energy efficiency
20reports to the Stakeholder Advisory Group and Illinois
21Commerce Commission, and other relevant reporting mechanisms.
22Participating utilities shall also report on relevant equity
23data and metrics requested by the committee, such as energy
24burden data, geographic, racial, and other relevant
25demographic data on where programs are being delivered and
26what populations programs are serving.

 

 

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1    The Illinois Commerce Commission shall oversee and have
2relevant staff participate in the committee. The committee
3shall have a budget of 0.25% of each utility's entire
4efficiency portfolio funding for a given year. The budget
5shall be overseen by the Commission. The budget shall be used
6to provide grants for community-based organizations serving on
7the leadership committee, stipends for community-based
8organizations participating in the committee, grants for
9community-based organizations to do energy efficiency outreach
10and education, and relevant meeting needs as determined by the
11leadership committee. The education and outreach shall
12include, but is not limited to, basic energy efficiency
13education, information about low-income energy efficiency
14programs, and information on the committee's purpose,
15structure, and activities.
16    (d) Notwithstanding any other provision of law to the
17contrary, a utility providing approved energy efficiency
18measures and, if applicable, demand-response measures in the
19State shall be permitted to recover all reasonable and
20prudently incurred costs of those measures from all retail
21customers, except as provided in subsection (l) of this
22Section, as follows, provided that nothing in this subsection
23(d) permits the double recovery of such costs from customers:
24        (1) The utility may recover its costs through an
25    automatic adjustment clause tariff filed with and approved
26    by the Commission. The tariff shall be established outside

 

 

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1    the context of a general rate case. Each year the
2    Commission shall initiate a review to reconcile any
3    amounts collected with the actual costs and to determine
4    the required adjustment to the annual tariff factor to
5    match annual expenditures. To enable the financing of the
6    incremental capital expenditures, including regulatory
7    assets, for electric utilities that serve less than
8    3,000,000 retail customers but more than 500,000 retail
9    customers in the State, the utility's actual year-end
10    capital structure that includes a common equity ratio,
11    excluding goodwill, of up to and including 50% of the
12    total capital structure shall be deemed reasonable and
13    used to set rates.
14        (2) A utility may recover its costs through an energy
15    efficiency formula rate approved by the Commission under a
16    filing under subsections (f) and (g) of this Section,
17    which shall specify the cost components that form the
18    basis of the rate charged to customers with sufficient
19    specificity to operate in a standardized manner and be
20    updated annually with transparent information that
21    reflects the utility's actual costs to be recovered during
22    the applicable rate year, which is the period beginning
23    with the first billing day of January and extending
24    through the last billing day of the following December.
25    The energy efficiency formula rate shall be implemented
26    through a tariff filed with the Commission under

 

 

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

 

 

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1        electric utilities that serve less than 3,000,000
2        retail customers but more than 500,000 retail
3        customers in the State, a participating electric
4        utility's actual year-end capital structure that
5        includes a common equity ratio, excluding goodwill, of
6        up to and including 50% of the total capital structure
7        shall be deemed reasonable and used to set rates.
8            (C) Include a cost of equity, which shall be
9        calculated as the sum of the following:
10                (i) the average for the applicable calendar
11            year of the monthly average yields of 30-year U.S.
12            Treasury bonds published by the Board of Governors
13            of the Federal Reserve System in its weekly H.15
14            Statistical Release or successor publication; and
15                (ii) 580 basis points.
16            At such time as the Board of Governors of the
17        Federal Reserve System ceases to include the monthly
18        average yields of 30-year U.S. Treasury bonds in its
19        weekly H.15 Statistical Release or successor
20        publication, the monthly average yields of the U.S.
21        Treasury bonds then having the longest duration
22        published by the Board of Governors in its weekly H.15
23        Statistical Release or successor publication shall
24        instead be used for purposes of this paragraph (2).
25            (D) Permit and set forth protocols, subject to a
26        determination of prudence and reasonableness

 

 

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1        consistent with Commission practice and law, for the
2        following:
3                (i) recovery of incentive compensation expense
4            that is based on the achievement of operational
5            metrics, including metrics related to budget
6            controls, outage duration and frequency, safety,
7            customer service, efficiency and productivity, and
8            environmental compliance; however, this protocol
9            shall not apply if such expense related to costs
10            incurred under this Section is recovered under
11            Article IX or Section 16-108.5 of this Act;
12            incentive compensation expense that is based on
13            net income or an affiliate's earnings per share
14            shall not be recoverable under the energy
15            efficiency formula rate;
16                (ii) recovery of pension and other
17            post-employment benefits expense, provided that
18            such costs are supported by an actuarial study;
19            however, this protocol shall not apply if such
20            expense related to costs incurred under this
21            Section is recovered under Article IX or Section
22            16-108.5 of this Act;
23                (iii) recovery of existing regulatory assets
24            over the periods previously authorized by the
25            Commission;
26                (iv) as described in subsection (e),

 

 

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1            amortization of costs incurred under this Section;
2            and
3                (v) projected, weather normalized billing
4            determinants for the applicable rate year.
5            (E) Provide for an annual reconciliation, as
6        described in paragraph (3) of this subsection (d),
7        less any deferred taxes related to the reconciliation,
8        with interest at an annual rate of return equal to the
9        utility's weighted average cost of capital, including
10        a revenue conversion factor calculated to recover or
11        refund all additional income taxes that may be payable
12        or receivable as a result of that return, of the energy
13        efficiency revenue requirement reflected in rates for
14        each calendar year, beginning with the calendar year
15        in which the utility files its energy efficiency
16        formula rate tariff under this paragraph (2), with
17        what the revenue requirement would have been had the
18        actual cost information for the applicable calendar
19        year been available at the filing date.
20        The utility shall file, together with its tariff, the
21    projected costs to be incurred by the utility during the
22    rate year under the utility's multi-year plan approved
23    under subsections (f) and (g) of this Section, including,
24    but not limited to, the projected capital investment costs
25    and projected regulatory asset balances with
26    correspondingly updated depreciation and amortization

 

 

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1    reserves and expense, that shall populate the energy
2    efficiency formula rate and set the initial rates under
3    the formula.
4        The Commission shall review the proposed tariff in
5    conjunction with its review of a proposed multi-year plan,
6    as specified in paragraph (5) of subsection (g) of this
7    Section. The review shall be based on the same evidentiary
8    standards, including, but not limited to, those concerning
9    the prudence and reasonableness of the costs incurred by
10    the utility, the Commission applies in a hearing to review
11    a filing for a general increase in rates under Article IX
12    of this Act. The initial rates shall take effect beginning
13    with the January monthly billing period following the
14    Commission's approval.
15        The tariff's rate design and cost allocation across
16    customer classes shall be consistent with the utility's
17    automatic adjustment clause tariff in effect on June 1,
18    2017 (the effective date of Public Act 99-906); however,
19    the Commission may revise the tariff's rate design and
20    cost allocation in subsequent proceedings under paragraph
21    (3) of this subsection (d).
22        If the energy efficiency formula rate is terminated,
23    the then current rates shall remain in effect until such
24    time as the energy efficiency costs are incorporated into
25    new rates that are set under this subsection (d) or
26    Article IX of this Act, subject to retroactive rate

 

 

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1    adjustment, with interest, to reconcile rates charged with
2    actual costs.
3        (3) The provisions of this paragraph (3) shall only
4    apply to an electric utility that has elected to file an
5    energy efficiency formula rate under paragraph (2) of this
6    subsection (d). Subsequent to the Commission's issuance of
7    an order approving the utility's energy efficiency formula
8    rate structure and protocols, and initial rates under
9    paragraph (2) of this subsection (d), the utility shall
10    file, on or before June 1 of each year, with the Chief
11    Clerk of the Commission its updated cost inputs to the
12    energy efficiency formula rate for the applicable rate
13    year and the corresponding new charges, as well as the
14    information described in paragraph (9) of subsection (g)
15    of this Section. Each such filing shall conform to the
16    following requirements and include the following
17    information:
18            (A) The inputs to the energy efficiency formula
19        rate for the applicable rate year shall be based on the
20        projected costs to be incurred by the utility during
21        the rate year under the utility's multi-year plan
22        approved under subsections (f) and (g) of this
23        Section, including, but not limited to, projected
24        capital investment costs and projected regulatory
25        asset balances with correspondingly updated
26        depreciation and amortization reserves and expense.

 

 

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1        The filing shall also include a reconciliation of the
2        energy efficiency revenue requirement that was in
3        effect for the prior rate year (as set by the cost
4        inputs for the prior rate year) with the actual
5        revenue requirement for the prior rate year
6        (determined using a year-end rate base) that uses
7        amounts reflected in the applicable FERC Form 1 that
8        reports the actual costs for the prior rate year. Any
9        over-collection or under-collection indicated by such
10        reconciliation shall be reflected as a credit against,
11        or recovered as an additional charge to, respectively,
12        with interest calculated at a rate equal to the
13        utility's weighted average cost of capital approved by
14        the Commission for the prior rate year, the charges
15        for the applicable rate year. Such over-collection or
16        under-collection shall be adjusted to remove any
17        deferred taxes related to the reconciliation, for
18        purposes of calculating interest at an annual rate of
19        return equal to the utility's weighted average cost of
20        capital approved by the Commission for the prior rate
21        year, including a revenue conversion factor calculated
22        to recover or refund all additional income taxes that
23        may be payable or receivable as a result of that
24        return. Each reconciliation shall be certified by the
25        participating utility in the same manner that FERC
26        Form 1 is certified. The filing shall also include the

 

 

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1        charge or credit, if any, resulting from the
2        calculation required by subparagraph (E) of paragraph
3        (2) of this subsection (d).
4            Notwithstanding any other provision of law to the
5        contrary, the intent of the reconciliation is to
6        ultimately reconcile both the revenue requirement
7        reflected in rates for each calendar year, beginning
8        with the calendar year in which the utility files its
9        energy efficiency formula rate tariff under paragraph
10        (2) of this subsection (d), with what the revenue
11        requirement determined using a year-end rate base for
12        the applicable calendar year would have been had the
13        actual cost information for the applicable calendar
14        year been available at the filing date.
15            For purposes of this Section, "FERC Form 1" means
16        the Annual Report of Major Electric Utilities,
17        Licensees and Others that electric utilities are
18        required to file with the Federal Energy Regulatory
19        Commission under the Federal Power Act, Sections 3,
20        4(a), 304 and 209, modified as necessary to be
21        consistent with 83 Ill. Admin. Code Part 415 as of May
22        1, 2011. Nothing in this Section is intended to allow
23        costs that are not otherwise recoverable to be
24        recoverable by virtue of inclusion in FERC Form 1.
25            (B) The new charges shall take effect beginning on
26        the first billing day of the following January billing

 

 

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1        period and remain in effect through the last billing
2        day of the next December billing period regardless of
3        whether the Commission enters upon a hearing under
4        this paragraph (3).
5            (C) The filing shall include relevant and
6        necessary data and documentation for the applicable
7        rate year. Normalization adjustments shall not be
8        required.
9        Within 45 days after the utility files its annual
10    update of cost inputs to the energy efficiency formula
11    rate, the Commission shall with reasonable notice,
12    initiate a proceeding concerning whether the projected
13    costs to be incurred by the utility and recovered during
14    the applicable rate year, and that are reflected in the
15    inputs to the energy efficiency formula rate, are
16    consistent with the utility's approved multi-year plan
17    under subsections (f) and (g) of this Section and whether
18    the costs incurred by the utility during the prior rate
19    year were prudent and reasonable. The Commission shall
20    also have the authority to investigate the information and
21    data described in paragraph (9) of subsection (g) of this
22    Section, including the proposed adjustment to the
23    utility's return on equity component of its weighted
24    average cost of capital. During the course of the
25    proceeding, each objection shall be stated with
26    particularity and evidence provided in support thereof,

 

 

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1    after which the utility shall have the opportunity to
2    rebut the evidence. Discovery shall be allowed consistent
3    with the Commission's Rules of Practice, which Rules of
4    Practice shall be enforced by the Commission or the
5    assigned administrative law judge. The Commission shall
6    apply the same evidentiary standards, including, but not
7    limited to, those concerning the prudence and
8    reasonableness of the costs incurred by the utility,
9    during the proceeding as it would apply in a proceeding to
10    review a filing for a general increase in rates under
11    Article IX of this Act. The Commission shall not, however,
12    have the authority in a proceeding under this paragraph
13    (3) to consider or order any changes to the structure or
14    protocols of the energy efficiency formula rate approved
15    under paragraph (2) of this subsection (d). In a
16    proceeding under this paragraph (3), the Commission shall
17    enter its order no later than the earlier of 195 days after
18    the utility's filing of its annual update of cost inputs
19    to the energy efficiency formula rate or December 15. The
20    utility's proposed return on equity calculation, as
21    described in paragraphs (7) through (9) of subsection (g)
22    of this Section, shall be deemed the final, approved
23    calculation on December 15 of the year in which it is filed
24    unless the Commission enters an order on or before
25    December 15, after notice and hearing, that modifies such
26    calculation consistent with this Section. The Commission's

 

 

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1    determinations of the prudence and reasonableness of the
2    costs incurred, and determination of such return on equity
3    calculation, for the applicable calendar year shall be
4    final upon entry of the Commission's order and shall not
5    be subject to reopening, reexamination, or collateral
6    attack in any other Commission proceeding, case, docket,
7    order, rule, or regulation; however, nothing in this
8    paragraph (3) shall prohibit a party from petitioning the
9    Commission to rehear or appeal to the courts the order
10    under the provisions of this Act.
11    (e) Beginning on June 1, 2017 (the effective date of
12Public Act 99-906), a utility subject to the requirements of
13this Section may elect to defer, as a regulatory asset, up to
14the full amount of its expenditures incurred under this
15Section for each annual period, including, but not limited to,
16any expenditures incurred above the funding level set by
17subsection (f) of this Section for a given year. The total
18expenditures deferred as a regulatory asset in a given year
19shall be amortized and recovered over a period that is equal to
20the weighted average of the energy efficiency measure lives
21implemented for that year that are reflected in the regulatory
22asset. The unamortized balance shall be recognized as of
23December 31 for a given year. The utility shall also earn a
24return on the total of the unamortized balances of all of the
25energy efficiency regulatory assets, less any deferred taxes
26related to those unamortized balances, at an annual rate equal

 

 

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1to the utility's weighted average cost of capital that
2includes, based on a year-end capital structure, the utility's
3actual cost of debt for the applicable calendar year and a cost
4of equity, which shall be calculated as the sum of the (i) the
5average for the applicable calendar year of the monthly
6average yields of 30-year U.S. Treasury bonds published by the
7Board of Governors of the Federal Reserve System in its weekly
8H.15 Statistical Release or successor publication; and (ii)
9580 basis points, including a revenue conversion factor
10calculated to recover or refund all additional income taxes
11that may be payable or receivable as a result of that return.
12Capital investment costs shall be depreciated and recovered
13over their useful lives consistent with generally accepted
14accounting principles. The weighted average cost of capital
15shall be applied to the capital investment cost balance, less
16any accumulated depreciation and accumulated deferred income
17taxes, as of December 31 for a given year.
18    When an electric utility creates a regulatory asset under
19the provisions of this Section, the costs are recovered over a
20period during which customers also receive a benefit which is
21in the public interest. Accordingly, it is the intent of the
22General Assembly that an electric utility that elects to
23create a regulatory asset under the provisions of this Section
24shall recover all of the associated costs as set forth in this
25Section. After the Commission has approved the prudence and
26reasonableness of the costs that comprise the regulatory

 

 

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1asset, the electric utility shall be permitted to recover all
2such costs, and the value and recoverability through rates of
3the associated regulatory asset shall not be limited, altered,
4impaired, or reduced.
5    (f) Beginning in 2017, each electric utility shall file an
6energy efficiency plan with the Commission to meet the energy
7efficiency standards for the next applicable multi-year period
8beginning January 1 of the year following the filing,
9according to the schedule set forth in paragraphs (1) through
10(3) of this subsection (f). If a utility does not file such a
11plan on or before the applicable filing deadline for the plan,
12it shall face a penalty of $100,000 per day until the plan is
13filed.
14        (1) No later than 30 days after June 1, 2017 (the
15    effective date of Public Act 99-906), each electric
16    utility shall file a 4-year energy efficiency plan
17    commencing on January 1, 2018 that is designed to achieve
18    the cumulative persisting annual savings goals specified
19    in paragraphs (1) through (4) of subsection (b-5) of this
20    Section or in paragraphs (1) through (4) of subsection
21    (b-15) of this Section, as applicable, through
22    implementation of energy efficiency measures; however, the
23    goals may be reduced if the utility's expenditures are
24    limited pursuant to subsection (m) of this Section or, for
25    a utility that serves less than 3,000,000 retail
26    customers, if each of the following conditions are met:

 

 

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1    (A) the plan's analysis and forecasts of the utility's
2    ability to acquire energy savings demonstrate that
3    achievement of such goals is not cost effective; and (B)
4    the amount of energy savings achieved by the utility as
5    determined by the independent evaluator for the most
6    recent year for which savings have been evaluated
7    preceding the plan filing was less than the average annual
8    amount of savings required to achieve the goals for the
9    applicable 4-year plan period. Except as provided in
10    subsection (m) of this Section, annual increases in
11    cumulative persisting annual savings goals during the
12    applicable 4-year plan period shall not be reduced to
13    amounts that are less than the maximum amount of
14    cumulative persisting annual savings that is forecast to
15    be cost-effectively achievable during the 4-year plan
16    period. The Commission shall review any proposed goal
17    reduction as part of its review and approval of the
18    utility's proposed plan.
19        (2) No later than March 1, 2021, each electric utility
20    shall file a 4-year energy efficiency plan commencing on
21    January 1, 2022 that is designed to achieve the cumulative
22    persisting annual savings goals specified in paragraphs
23    (5) through (8) of subsection (b-5) of this Section or in
24    paragraphs (5) through (8) of subsection (b-15) of this
25    Section, as applicable, through implementation of energy
26    efficiency measures; however, the goals may be reduced if

 

 

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1    either (1) clear and convincing evidence demonstrates,
2    through independent analysis, that the expenditure limits
3    in subsection (m) of this Section preclude full
4    achievement of the goals or (2) the utility's expenditures
5    are limited pursuant to subsection (m) of this Section or,
6    each of the following conditions are met: (A) the plan's
7    analysis and forecasts of the utility's ability to acquire
8    energy savings demonstrate by clear and convincing
9    evidence and through independent analysis that achievement
10    of such goals is not cost effective; and (B) the amount of
11    energy savings achieved by the utility as determined by
12    the independent evaluator for the most recent year for
13    which savings have been evaluated preceding the plan
14    filing was less than the average annual amount of savings
15    required to achieve the goals for the applicable 4-year
16    plan period. If there is not clear and convincing evidence
17    that achieving the savings goals specified in paragraph
18    (b-5) or (b-15) of this Section is possible both
19    cost-effectively and within the expenditure limits in
20    subsection (m), such savings goals shall not be reduced.
21    Except as provided in subsection (m) of this Section,
22    annual increases in cumulative persisting annual savings
23    goals during the applicable 4-year plan period shall not
24    be reduced to amounts that are less than the maximum
25    amount of cumulative persisting annual savings that is
26    forecast to be cost-effectively achievable during the

 

 

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1    4-year plan period. The Commission shall review any
2    proposed goal reduction as part of its review and approval
3    of the utility's proposed plan, taking into account the
4    results of the potential study required under this
5    Section.
6        (3) No later than March 1, 2025, each electric utility
7    shall file a 4-year 5-year energy efficiency plan
8    commencing on January 1, 2026 that is designed to achieve
9    the cumulative persisting annual savings goals specified
10    in paragraphs (9) through (12) (13) of subsection (b-5) of
11    this Section or in paragraphs (9) through (12) (13) of
12    subsection (b-15) of this Section, as applicable, through
13    implementation of energy efficiency measures; however, the
14    goals may be reduced if either (1) clear and convincing
15    evidence demonstrates, through independent analysis, that
16    the expenditure limits in subsection (m) of this Section
17    preclude full achievement of the goals or (2) the
18    utility's expenditures are limited pursuant to subsection
19    (m) of this Section or, each of the following conditions
20    are met: (A) the plan's analysis and forecasts of the
21    utility's ability to acquire energy savings demonstrate by
22    clear and convincing evidence and through independent
23    analysis that achievement of such goals is not cost
24    effective; and (B) the amount of energy savings achieved
25    by the utility as determined by the independent evaluator
26    for the most recent year for which savings have been

 

 

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1    evaluated preceding the plan filing was less than the
2    average annual amount of savings required to achieve the
3    goals for the applicable 4-year 5-year plan period. If
4    there is not clear and convincing evidence that achieving
5    the savings goals specified in paragraphs (b-5) or (b-15)
6    of this Section is possible both cost-effectively and
7    within the expenditure limits in subsection (m), such
8    savings goals shall not be reduced. Except as provided in
9    subsection (m) of this Section, annual increases in
10    cumulative persisting annual savings goals during the
11    applicable 4-year 5-year plan period shall not be reduced
12    to amounts that are less than the maximum amount of
13    cumulative persisting annual savings that is forecast to
14    be cost-effectively achievable during the 4-year 5-year
15    plan period. The Commission shall review any proposed goal
16    reduction as part of its review and approval of the
17    utility's proposed plan, taking into account the results
18    of the potential study required by this Section.
19        (4) No later than March 1, 2029, and every 4 years
20    thereafter, each electric utility shall file a 4-year
21    energy efficiency plan commencing on January 1, 2030, and
22    every 4 years thereafter, respectively, that is designed
23    to achieve the cumulative persisting annual savings goals
24    established by the Illinois Commerce Commission pursuant
25    to direction of subsections (b-5) and (b-15) of this
26    Section, as applicable, through implementation of energy

 

 

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1    efficiency measures; however, the goals may be reduced if
2    either (1) clear and convincing evidence and independent
3    analysis demonstrates that the expenditure limits in
4    subsection (m) of this Section preclude full achievement
5    of the goals or (2) each of the following conditions are
6    met: (A) the plan's analysis and forecasts of the
7    utility's ability to acquire energy savings demonstrate by
8    clear and convincing evidence and through independent
9    analysis that achievement of such goals is not
10    cost-effective; and (B) the amount of energy savings
11    achieved by the utility as determined by the independent
12    evaluator for the most recent year for which savings have
13    been evaluated preceding the plan filing was less than the
14    average annual amount of savings required to achieve the
15    goals for the applicable 4-year plan period. If there is
16    not clear and convincing evidence that achieving the
17    savings goals specified in paragraphs (b-5) or (b-15) of
18    this Section is possible both cost-effectively and within
19    the expenditure limits in subsection (m), such savings
20    goals shall not be reduced. Except as provided in
21    subsection (m) of this Section, annual increases in
22    cumulative persisting annual savings goals during the
23    applicable 4-year plan period shall not be reduced to
24    amounts that are less than the maximum amount of
25    cumulative persisting annual savings that is forecast to
26    be cost-effectively achievable during the 4-year plan

 

 

10200HB3666sam001- 645 -LRB102 13525 AMC 28481 a

1    period. The Commission shall review any proposed goal
2    reduction as part of its review and approval of the
3    utility's proposed plan.
4    Each utility's plan shall set forth the utility's
5proposals to meet the energy efficiency standards identified
6in subsection (b-5) or (b-15), as applicable and as such
7standards may have been modified under this subsection (f),
8taking into account the unique circumstances of the utility's
9service territory and results of an energy efficiency
10potential study as described in subsection (f-5) of this
11Section. For those plans commencing on January 1, 2018, the
12Commission shall seek public comment on the utility's plan and
13shall issue an order approving or disapproving each plan no
14later than 105 days after June 1, 2017 (the effective date of
15Public Act 99-906). For those plans commencing after December
1631, 2021, the Commission shall seek public comment on the
17utility's plan and shall issue an order approving or
18disapproving each plan within 6 months after its submission.
19If the Commission disapproves a plan, the Commission shall,
20within 30 days, describe in detail the reasons for the
21disapproval and describe a path by which the utility may file a
22revised draft of the plan to address the Commission's concerns
23satisfactorily. If the utility does not refile with the
24Commission within 60 days, the utility shall be subject to
25penalties at a rate of $100,000 per day until the plan is
26filed. This process shall continue, and penalties shall

 

 

10200HB3666sam001- 646 -LRB102 13525 AMC 28481 a

1accrue, until the utility has successfully filed a portfolio
2of energy efficiency and demand-response measures. Penalties
3shall be deposited into the Energy Efficiency Trust Fund.
4    (g) In submitting proposed plans and funding levels under
5subsection (f) of this Section to meet the savings goals
6identified in subsection (b-5) or (b-15) of this Section, as
7applicable, the utility shall:
8        (1) Demonstrate that its proposed energy efficiency
9    measures will achieve the applicable requirements that are
10    identified in subsection (b-5) or (b-15) of this Section,
11    as modified by subsection (f) of this Section.
12        (2) (Blank). Present specific proposals to implement
13    new building and appliance standards that have been placed
14    into effect.
15        (2.5) Demonstrate consideration of program options for
16    (A) advancing new building codes, appliance standards, and
17    municipal regulations governing existing and new building
18    efficiency improvements and (B) supporting efforts to
19    improve compliance with new building codes, appliance
20    standards and municipal regulations, as potentially
21    cost-effective means of acquiring energy savings to count
22    toward savings goals.
23        (3) Demonstrate that its overall portfolio of
24    measures, not including low-income programs described in
25    subsection (c) of this Section, is cost-effective using
26    the total resource cost test or complies with paragraphs

 

 

10200HB3666sam001- 647 -LRB102 13525 AMC 28481 a

1    (1) through (3) of subsection (f) of this Section and
2    represents a diverse cross-section of opportunities for
3    customers of all rate classes, other than those customers
4    described in subsection (l) of this Section, to
5    participate in the programs. Individual measures need not
6    be cost effective.
7        (3.5) Demonstrate that the utility's plan integrates
8    the delivery of energy efficiency programs with natural
9    gas efficiency programs, programs promoting distributed
10    solar, programs promoting demand response and other
11    efforts to address bill payment issues, including, but not
12    limited to, LIHEAP and the Percentage of Income Payment
13    Plan, to the extent such integration is practical and has
14    the potential to enhance customer engagement, minimize
15    market confusion, or reduce administrative costs.
16        (4) Present a third-party energy efficiency
17    implementation program subject to the following
18    requirements:
19            (A) beginning with the year commencing January 1,
20        2019, electric utilities that serve more than
21        3,000,000 retail customers in the State shall fund
22        third-party energy efficiency programs in an amount
23        that is no less than $25,000,000 per year, and
24        electric utilities that serve less than 3,000,000
25        retail customers but more than 500,000 retail
26        customers in the State shall fund third-party energy

 

 

10200HB3666sam001- 648 -LRB102 13525 AMC 28481 a

1        efficiency programs in an amount that is no less than
2        $8,350,000 per year;
3            (B) during 2018, the utility shall conduct a
4        solicitation process for purposes of requesting
5        proposals from third-party vendors for those
6        third-party energy efficiency programs to be offered
7        during one or more of the years commencing January 1,
8        2019, January 1, 2020, and January 1, 2021; for those
9        multi-year plans commencing on January 1, 2022 and
10        January 1, 2026, the utility shall conduct a
11        solicitation process during 2021 and 2025,
12        respectively, for purposes of requesting proposals
13        from third-party vendors for those third-party energy
14        efficiency programs to be offered during one or more
15        years of the respective multi-year plan period; for
16        each solicitation process, the utility shall identify
17        the sector, technology, or geographical area for which
18        it is seeking requests for proposals; the solicitation
19        process must be either for programs that fill gaps in
20        the utility's program portfolio and for programs that
21        target low-income customers, business sectors,
22        building types, geographies, or other specific parts
23        of its customer base with initiatives that would be
24        more effective at reaching these customer segments
25        than the utilities' programs filed in its energy
26        efficiency plans;

 

 

10200HB3666sam001- 649 -LRB102 13525 AMC 28481 a

1            (C) the utility shall propose the bidder
2        qualifications, performance measurement process, and
3        contract structure, which must include a performance
4        payment mechanism and general terms and conditions;
5        the proposed qualifications, process, and structure
6        shall be subject to Commission approval; and
7            (D) the utility shall retain an independent third
8        party to score the proposals received through the
9        solicitation process described in this paragraph (4),
10        rank them according to their cost per lifetime
11        kilowatt-hours saved, and assemble the portfolio of
12        third-party programs.
13        The electric utility shall recover all costs
14    associated with Commission-approved, third-party
15    administered programs regardless of the success of those
16    programs.
17        (4.5) Implement cost-effective demand-response
18    measures to reduce peak demand by 0.1% over the prior year
19    for eligible retail customers, as defined in Section
20    16-111.5 of this Act, and for customers that elect hourly
21    service from the utility pursuant to Section 16-107 of
22    this Act, provided those customers have not been declared
23    competitive. This requirement continues until December 31,
24    2026.
25        (5) Include a proposed or revised cost-recovery tariff
26    mechanism, as provided for under subsection (d) of this

 

 

10200HB3666sam001- 650 -LRB102 13525 AMC 28481 a

1    Section, to fund the proposed energy efficiency and
2    demand-response measures and to ensure the recovery of the
3    prudently and reasonably incurred costs of
4    Commission-approved programs.
5        (6) Provide for an annual independent evaluation of
6    the performance of the cost-effectiveness of the utility's
7    portfolio of measures, as well as a full review of the
8    multi-year plan results of the broader net program impacts
9    and, to the extent practical, for adjustment of the
10    measures on a going-forward basis as a result of the
11    evaluations. The resources dedicated to evaluation shall
12    not exceed 3% of portfolio resources in any given year.
13        (7) For electric utilities that serve more than
14    3,000,000 retail customers in the State:
15            (A) Through December 31, 2025, provide for an
16        adjustment to the return on equity component of the
17        utility's weighted average cost of capital calculated
18        under subsection (d) of this Section:
19                (i) If the independent evaluator determines
20            that the utility achieved a cumulative persisting
21            annual savings that is less than the applicable
22            annual incremental goal, then the return on equity
23            component shall be reduced by a maximum of 200
24            basis points in the event that the utility
25            achieved no more than 75% of such goal. If the
26            utility achieved more than 75% of the applicable

 

 

10200HB3666sam001- 651 -LRB102 13525 AMC 28481 a

1            annual incremental goal but less than 100% of such
2            goal, then the return on equity component shall be
3            reduced by 8 basis points for each percent by
4            which the utility failed to achieve the goal.
5                (ii) If the independent evaluator determines
6            that the utility achieved a cumulative persisting
7            annual savings that is more than the applicable
8            annual incremental goal, then the return on equity
9            component shall be increased by a maximum of 200
10            basis points in the event that the utility
11            achieved at least 125% of such goal. If the
12            utility achieved more than 100% of the applicable
13            annual incremental goal but less than 125% of such
14            goal, then the return on equity component shall be
15            increased by 8 basis points for each percent by
16            which the utility achieved above the goal. If the
17            applicable annual incremental goal was reduced
18            under paragraphs (1) or (2) of subsection (f) of
19            this Section, then the following adjustments shall
20            be made to the calculations described in this item
21            (ii):
22                    (aa) the calculation for determining
23                achievement that is at least 125% of the
24                applicable annual incremental goal shall use
25                the unreduced applicable annual incremental
26                goal to set the value; and

 

 

10200HB3666sam001- 652 -LRB102 13525 AMC 28481 a

1                    (bb) the calculation for determining
2                achievement that is less than 125% but more
3                than 100% of the applicable annual incremental
4                goal shall use the reduced applicable annual
5                incremental goal to set the value for 100%
6                achievement of the goal and shall use the
7                unreduced goal to set the value for 125%
8                achievement. The 8 basis point value shall
9                also be modified, as necessary, so that the
10                200 basis points are evenly apportioned among
11                each percentage point value between 100% and
12                125% achievement.
13            (B) For the period January 1, 2026 through
14        December 31, 2029 and in all subsequent 4-year periods
15        2030, provide for an adjustment to the return on
16        equity component of the utility's weighted average
17        cost of capital calculated under subsection (d) of
18        this Section:
19                (i) If the independent evaluator determines
20            that the utility achieved a cumulative persisting
21            annual savings that is less than the applicable
22            annual incremental goal, then the return on equity
23            component shall be reduced by a maximum of 200
24            basis points in the event that the utility
25            achieved no more than 66% of such goal. If the
26            utility achieved more than 66% of the applicable

 

 

10200HB3666sam001- 653 -LRB102 13525 AMC 28481 a

1            annual incremental goal but less than 100% of such
2            goal, then the return on equity component shall be
3            reduced by 6 basis points for each percent by
4            which the utility failed to achieve the goal.
5                (ii) If the independent evaluator determines
6            that the utility achieved a cumulative persisting
7            annual savings that is more than the applicable
8            annual incremental goal, then the return on equity
9            component shall be increased by a maximum of 200
10            basis points in the event that the utility
11            achieved at least 134% of such goal. If the
12            utility achieved more than 100% of the applicable
13            annual incremental goal but less than 134% of such
14            goal, then the return on equity component shall be
15            increased by 6 basis points for each percent by
16            which the utility achieved above the goal. If the
17            applicable annual incremental goal was reduced
18            under paragraph (3) of subsection (f) of this
19            Section, then the following adjustments shall be
20            made to the calculations described in this item
21            (ii):
22                    (aa) the calculation for determining
23                achievement that is at least 134% of the
24                applicable annual incremental goal shall use
25                the unreduced applicable annual incremental
26                goal to set the value; and

 

 

10200HB3666sam001- 654 -LRB102 13525 AMC 28481 a

1                    (bb) the calculation for determining
2                achievement that is less than 134% but more
3                than 100% of the applicable annual incremental
4                goal shall use the reduced applicable annual
5                incremental goal to set the value for 100%
6                achievement of the goal and shall use the
7                unreduced goal to set the value for 134%
8                achievement. The 6 basis point value shall
9                also be modified, as necessary, so that the
10                200 basis points are evenly apportioned among
11                each percentage point value between 100% and
12                134% achievement.
13            (C) Notwithstanding the provisions of
14        subparagraphs (A) and (B) of this paragraph (7), if
15        the applicable annual incremental goal for an electric
16        utility is ever less than 0.6% of deemed average
17        weather normalized sales of electric power and energy
18        during calendar years 2014, 2015, and 2016, an
19        adjustment to the return on equity component of the
20        utility's weighted average cost of capital calculated
21        under subsection (d) of this Section shall be made as
22        follows:
23                (i) If the independent evaluator determines
24            that the utility achieved a cumulative persisting
25            annual savings that is less than would have been
26            achieved had the applicable annual incremental

 

 

10200HB3666sam001- 655 -LRB102 13525 AMC 28481 a

1            goal been achieved, then the return on equity
2            component shall be reduced by a maximum of 200
3            basis points if the utility achieved no more than
4            75% of its applicable annual total savings
5            requirement as defined in paragraph (7.5) of this
6            subsection. If the utility achieved more than 75%
7            of the applicable annual total savings requirement
8            but less than 100% of such goal, then the return on
9            equity component shall be reduced by 8 basis
10            points for each percent by which the utility
11            failed to achieve the goal.
12                (ii) If the independent evaluator determines
13            that the utility achieved a cumulative persisting
14            annual savings that is more than would have been
15            achieved had the applicable annual incremental
16            goal been achieved, then the return on equity
17            component shall be increased by a maximum of 200
18            basis points if the utility achieved at least 125%
19            of its applicable annual total savings
20            requirement. If the utility achieved more than
21            100% of the applicable annual total savings
22            requirement but less than 125% of such goal, then
23            the return on equity component shall be increased
24            by 8 basis points for each percent by which the
25            utility achieved above the applicable annual total
26            savings requirement. If the applicable annual

 

 

10200HB3666sam001- 656 -LRB102 13525 AMC 28481 a

1            incremental goal was reduced under paragraph (1)
2            or (2) of subsection (f) of this Section, then the
3            following adjustments shall be made to the
4            calculations described in this item (ii):
5                    (aa) the calculation for determining
6                achievement that is at least 125% of the
7                applicable annual total savings requirement
8                shall use the unreduced applicable annual
9                incremental goal to set the value; and
10                    (bb) the calculation for determining
11                achievement that is less than 125% but more
12                than 100% of the applicable annual total
13                savings requirement shall use the reduced
14                applicable annual incremental goal to set the
15                value for 100% achievement of the goal and
16                shall use the unreduced goal to set the value
17                for 125% achievement. The 8 basis point value
18                shall also be modified, as necessary, so that
19                the 200 basis points are evenly apportioned
20                among each percentage point value between 100%
21                and 125% achievement.
22        (7.5) For purposes of this Section, the term
23    "applicable annual incremental goal" means the difference
24    between the cumulative persisting annual savings goal for
25    the calendar year that is the subject of the independent
26    evaluator's determination and the cumulative persisting

 

 

10200HB3666sam001- 657 -LRB102 13525 AMC 28481 a

1    annual savings goal for the immediately preceding calendar
2    year, as such goals are defined in subsections (b-5) and
3    (b-15) of this Section and as these goals may have been
4    modified as provided for under subsection (b-20) and
5    paragraphs (1) through (3) of subsection (f) of this
6    Section. Under subsections (b), (b-5), (b-10), and (b-15)
7    of this Section, a utility must first replace energy
8    savings from measures that have expired reached the end of
9    their measure lives and would otherwise have to be
10    replaced to meet the applicable savings goals identified
11    in subsection (b-5) or (b-15) of this Section before any
12    progress towards achievement of its applicable annual
13    incremental goal may be counted. Savings may expire
14    because measures installed in previous years have reached
15    the end of their lives, because measures installed in
16    previous years are producing lower savings in the current
17    year than in the previous year, or for other reasons
18    identified by independent evaluators. Notwithstanding
19    anything else set forth in this Section, the difference
20    between the actual annual incremental savings achieved in
21    any given year, including the replacement of energy
22    savings from measures that have expired, and the
23    applicable annual incremental goal shall not affect
24    adjustments to the return on equity for subsequent
25    calendar years under this subsection (g).
26        In this Section, "applicable annual total savings

 

 

10200HB3666sam001- 658 -LRB102 13525 AMC 28481 a

1    requirement" means the total amount of new annual savings
2    that the utility must achieve in any given year to achieve
3    the applicable annual incremental goal. This is equal to
4    the applicable annual incremental goal plus the total new
5    annual savings that are required to replace savings that
6    expired in or at the end of the previous year.
7        (8) For electric utilities that serve less than
8    3,000,000 retail customers but more than 500,000 retail
9    customers in the State:
10            (A) Through December 31, 2025, the applicable
11        annual incremental goal shall be compared to the
12        annual incremental savings as determined by the
13        independent evaluator.
14                (i) The return on equity component shall be
15            reduced by 8 basis points for each percent by
16            which the utility did not achieve 84.4% of the
17            applicable annual incremental goal.
18                (ii) The return on equity component shall be
19            increased by 8 basis points for each percent by
20            which the utility exceeded 100% of the applicable
21            annual incremental goal.
22                (iii) The return on equity component shall not
23            be increased or decreased if the annual
24            incremental savings as determined by the
25            independent evaluator is greater than 84.4% of the
26            applicable annual incremental goal and less than

 

 

10200HB3666sam001- 659 -LRB102 13525 AMC 28481 a

1            100% of the applicable annual incremental goal.
2                (iv) The return on equity component shall not
3            be increased or decreased by an amount greater
4            than 200 basis points pursuant to this
5            subparagraph (A).
6            (B) For the period of January 1, 2026 through
7        December 31, 2029 and in all subsequent 4-year periods
8        2030, the applicable annual incremental goal shall be
9        compared to the annual incremental savings as
10        determined by the independent evaluator.
11                (i) The return on equity component shall be
12            reduced by 6 basis points for each percent by
13            which the utility did not achieve 100% of the
14            applicable annual incremental goal.
15                (ii) The return on equity component shall be
16            increased by 6 basis points for each percent by
17            which the utility exceeded 100% of the applicable
18            annual incremental goal.
19                (iii) The return on equity component shall not
20            be increased or decreased by an amount greater
21            than 200 basis points pursuant to this
22            subparagraph (B).
23            (C) Notwithstanding provisions in subparagraphs
24        (A) and (B) of paragraph (7) of this subsection, if the
25        applicable annual incremental goal for an electric
26        utility is ever less than 0.6% of deemed average

 

 

10200HB3666sam001- 660 -LRB102 13525 AMC 28481 a

1        weather normalized sales of electric power and energy
2        during calendar years 2014, 2015 and 2016, an
3        adjustment to the return on equity component of the
4        utility's weighted average cost of capital calculated
5        under subsection (d) of this Section shall be made as
6        follows:
7                (i) The return on equity component shall be
8            reduced by 8 basis points for each percent by
9            which the utility did not achieve 100% of the
10            applicable annual total savings requirement.
11                (ii) The return on equity component shall be
12            increased by 8 basis points for each percent by
13            which the utility exceeded 100% of the applicable
14            annual total savings requirement.
15                (iii) The return on equity component shall not
16            be increased or decreased by an amount greater
17            than 200 basis points pursuant to this
18            subparagraph (C).
19            (D) (C) If the applicable annual incremental goal
20        was reduced under paragraph paragraphs (1), (2), or
21        (3), or (4) of subsection (f) of this Section, then the
22        following adjustments shall be made to the
23        calculations described in subparagraphs (A), and (B),
24        and (C) of this paragraph (8):
25                (i) The calculation for determining
26            achievement that is at least 125% or 134%, as

 

 

10200HB3666sam001- 661 -LRB102 13525 AMC 28481 a

1            applicable, of the applicable annual incremental
2            goal or the applicable annual total savings
3            requirement, as applicable, shall use the
4            unreduced applicable annual incremental goal to
5            set the value.
6                (ii) For the period through December 31, 2025,
7            the calculation for determining achievement that
8            is less than 125% but more than 100% of the
9            applicable annual incremental goal or the
10            applicable annual total savings requirement, as
11            applicable, shall use the reduced applicable
12            annual incremental goal to set the value for 100%
13            achievement of the goal and shall use the
14            unreduced goal to set the value for 125%
15            achievement. The 8 basis point value shall also be
16            modified, as necessary, so that the 200 basis
17            points are evenly apportioned among each
18            percentage point value between 100% and 125%
19            achievement.
20                (iii) For the period of January 1, 2026
21            through December 31, 2029 and all subsequent
22            4-year periods, the calculation for determining
23            achievement that is less than 125% or 134%, as
24            applicable, but more than 100% of the applicable
25            annual incremental goal or the applicable annual
26            total savings requirement, as applicable, shall

 

 

10200HB3666sam001- 662 -LRB102 13525 AMC 28481 a

1            use the reduced applicable annual incremental goal
2            to set the value for 100% achievement of the goal
3            and shall use the unreduced goal to set the value
4            for 125% achievement. The 6 basis-point value or 8
5            basis-point value, as applicable, shall also be
6            modified, as necessary, so that the 200 basis
7            points are evenly apportioned among each
8            percentage point value between 100% and 125% or
9            between 100% and 134% achievement, as applicable
10            2030, the calculation for determining achievement
11            that is less than 134% but more than 100% of the
12            applicable annual incremental goal shall use the
13            reduced applicable annual incremental goal to set
14            the value for 100% achievement of the goal and
15            shall use the unreduced goal to set the value for
16            125% achievement. The 6 basis point value shall
17            also be modified, as necessary, so that the 200
18            basis points are evenly apportioned among each
19            percentage point value between 100% and 134%
20            achievement.
21        (9) The utility shall submit the energy savings data
22    to the independent evaluator no later than 30 days after
23    the close of the plan year. The independent evaluator
24    shall determine the cumulative persisting annual savings
25    for a given plan year, as well as an estimate of job
26    impacts and other macroeconomic impacts of the efficiency

 

 

10200HB3666sam001- 663 -LRB102 13525 AMC 28481 a

1    programs for that year, no later than 120 days after the
2    close of the plan year. The utility shall submit an
3    informational filing to the Commission no later than 160
4    days after the close of the plan year that attaches the
5    independent evaluator's final report identifying the
6    cumulative persisting annual savings for the year and
7    calculates, under paragraph (7) or (8) of this subsection
8    (g), as applicable, any resulting change to the utility's
9    return on equity component of the weighted average cost of
10    capital applicable to the next plan year beginning with
11    the January monthly billing period and extending through
12    the December monthly billing period. However, if the
13    utility recovers the costs incurred under this Section
14    under paragraphs (2) and (3) of subsection (d) of this
15    Section, then the utility shall not be required to submit
16    such informational filing, and shall instead submit the
17    information that would otherwise be included in the
18    informational filing as part of its filing under paragraph
19    (3) of such subsection (d) that is due on or before June 1
20    of each year.
21        For those utilities that must submit the informational
22    filing, the Commission may, on its own motion or by
23    petition, initiate an investigation of such filing,
24    provided, however, that the utility's proposed return on
25    equity calculation shall be deemed the final, approved
26    calculation on December 15 of the year in which it is filed

 

 

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1    unless the Commission enters an order on or before
2    December 15, after notice and hearing, that modifies such
3    calculation consistent with this Section.
4        The adjustments to the return on equity component
5    described in paragraphs (7) and (8) of this subsection (g)
6    shall be applied as described in such paragraphs through a
7    separate tariff mechanism, which shall be filed by the
8    utility under subsections (f) and (g) of this Section.
9        (9.5) The utility must demonstrate how it will ensure
10    that program implementation contractors and energy
11    efficiency installation vendors will promote workforce
12    equity and quality jobs.
13        (9.6) Utilities shall collect data necessary to ensure
14    compliance with paragraph (9.5) no less than quarterly and
15    shall communicate progress toward compliance with
16    paragraph (9.5) to program implementation contractors and
17    energy efficiency installation vendors no less than
18    quarterly. Utilities shall work with relevant vendors,
19    providing education, training, and other resources needed
20    to ensure compliance and, where necessary, adjusting or
21    terminating work with vendors that cannot assist with
22    compliance.
23        (10) Utilities required to implement efficiency
24    programs under subsections (b-5) and (b-10) shall report
25    annually to the Illinois Commerce Commission and the
26    General Assembly on how hiring, contracting, job training,

 

 

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1    and other practices related to its energy efficiency
2    programs enhance the diversity of vendors working on such
3    programs. These reports must include data on vendor and
4    employee diversity, including data on the implementation
5    of paragraphs (9.5) and (9.6). If the utility is not
6    meeting the requirements of paragraphs (9.5) and (9.6),
7    the utility shall submit a plan to adjust their activities
8    so that they meet the requirements of paragraphs (9.5) and
9    (9.6) within the following year.
10    (h) No more than 4% 6% of energy efficiency and
11demand-response program revenue may be allocated for research,
12development, or pilot deployment of new equipment or measures.
13Electric utilities shall work with interested stakeholders to
14formulate a plan for how these funds should be spent,
15incorporate statewide approaches for these allocations, and
16file a 4-year plan that demonstrates that collaboration. If a
17utility files a request for modified annual energy savings
18goals with the Commission, then a utility shall forgo spending
19portfolio dollars on research and development proposals.
20    (i) When practicable, electric utilities shall incorporate
21advanced metering infrastructure data into the planning,
22implementation, and evaluation of energy efficiency measures
23and programs, subject to the data privacy and confidentiality
24protections of applicable law.
25    (j) The independent evaluator shall follow the guidelines
26and use the savings set forth in Commission-approved energy

 

 

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1efficiency policy manuals and technical reference manuals, as
2each may be updated from time to time. Until such time as
3measure life values for energy efficiency measures implemented
4for low-income households under subsection (c) of this Section
5are incorporated into such Commission-approved manuals, the
6low-income measures shall have the same measure life values
7that are established for same measures implemented in
8households that are not low-income households.
9    (k) Notwithstanding any provision of law to the contrary,
10an electric utility subject to the requirements of this
11Section may file a tariff cancelling an automatic adjustment
12clause tariff in effect under this Section or Section 8-103,
13which shall take effect no later than one business day after
14the date such tariff is filed. Thereafter, the utility shall
15be authorized to defer and recover its expenditures incurred
16under this Section through a new tariff authorized under
17subsection (d) of this Section or in the utility's next rate
18case under Article IX or Section 16-108.5 of this Act, with
19interest at an annual rate equal to the utility's weighted
20average cost of capital as approved by the Commission in such
21case. If the utility elects to file a new tariff under
22subsection (d) of this Section, the utility may file the
23tariff within 10 days after June 1, 2017 (the effective date of
24Public Act 99-906), and the cost inputs to such tariff shall be
25based on the projected costs to be incurred by the utility
26during the calendar year in which the new tariff is filed and

 

 

10200HB3666sam001- 667 -LRB102 13525 AMC 28481 a

1that were not recovered under the tariff that was cancelled as
2provided for in this subsection. Such costs shall include
3those incurred or to be incurred by the utility under its
4multi-year plan approved under subsections (f) and (g) of this
5Section, including, but not limited to, projected capital
6investment costs and projected regulatory asset balances with
7correspondingly updated depreciation and amortization reserves
8and expense. The Commission shall, after notice and hearing,
9approve, or approve with modification, such tariff and cost
10inputs no later than 75 days after the utility filed the
11tariff, provided that such approval, or approval with
12modification, shall be consistent with the provisions of this
13Section to the extent they do not conflict with this
14subsection (k). The tariff approved by the Commission shall
15take effect no later than 5 days after the Commission enters
16its order approving the tariff.
17    No later than 60 days after the effective date of the
18tariff cancelling the utility's automatic adjustment clause
19tariff, the utility shall file a reconciliation that
20reconciles the moneys collected under its automatic adjustment
21clause tariff with the costs incurred during the period
22beginning June 1, 2016 and ending on the date that the electric
23utility's automatic adjustment clause tariff was cancelled. In
24the event the reconciliation reflects an under-collection, the
25utility shall recover the costs as specified in this
26subsection (k). If the reconciliation reflects an

 

 

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1over-collection, the utility shall apply the amount of such
2over-collection as a one-time credit to retail customers'
3bills.
4    (l) For the calendar years covered by a multi-year plan
5commencing after December 31, 2017, subsections (a) through
6(j) of this Section do not apply to eligible large private
7energy customers that have chosen to opt out of multi-year
8plans consistent with this subsection (1).
9        (1) For purposes of this subsection (l), "eligible
10    large private energy customer" means any retail customers,
11    except for federal, State, municipal, and other public
12    customers, of an electric utility that serves more than
13    3,000,000 retail customers, except for federal, State,
14    municipal and other public customers, in the State and
15    whose total highest 30 minute demand was more than 10,000
16    kilowatts, or any retail customers of an electric utility
17    that serves less than 3,000,000 retail customers but more
18    than 500,000 retail customers in the State and whose total
19    highest 15 minute demand was more than 10,000 kilowatts.
20    For purposes of this subsection (l), "retail customer" has
21    the meaning set forth in Section 16-102 of this Act.
22    However, for a business entity with multiple sites located
23    in the State, where at least one of those sites qualifies
24    as an eligible large private energy customer, then any of
25    that business entity's sites, properly identified on a
26    form for notice, shall be considered eligible large

 

 

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1    private energy customers for the purposes of this
2    subsection (l). A determination of whether this subsection
3    is applicable to a customer shall be made for each
4    multi-year plan beginning after December 31, 2017. The
5    criteria for determining whether this subsection (l) is
6    applicable to a retail customer shall be based on the 12
7    consecutive billing periods prior to the start of the
8    first year of each such multi-year plan.
9        (2) Within 45 days after the effective date of this
10    amendatory Act of the 102nd General Assembly, the
11    Commission shall prescribe the form for notice required
12    for opting out of energy efficiency programs. The notice
13    must be submitted to the retail electric utility 12 months
14    before the next energy efficiency planning cycle. However,
15    within 120 days after the Commission's initial issuance of
16    the form for notice, eligible large private energy
17    customers may submit a form for notice to an electric
18    utility. The form for notice for opting out of energy
19    efficiency programs shall include all of the following:
20            (A) a statement indicating that the customer has
21        elected to opt out;
22            (B) the account numbers for the customer accounts
23        to which the opt out shall apply;
24            (C) the mailing address associated with the
25        customer accounts identified under subparagraph (B);
26            (D) an American Society of Heating, Refrigerating,

 

 

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1        and Air-Conditioning Engineers (ASHRAE) level 2 or
2        higher audit report conducted by an independent
3        third-party expert identifying cost-effective energy
4        efficiency project opportunities that could be
5        invested in over the next 10 years. A retail customer
6        with specialized processes may utilize a self-audit
7        process in lieu of the ASHRAE audit;
8            (E) a description of the customer's plans to
9        reallocate the funds toward internal energy efficiency
10        efforts identified in the subparagraph (D) report,
11        including, but not limited to: (i) strategic energy
12        management or other programs, including descriptions
13        of targeted buildings, equipment and operations; (ii)
14        eligible energy efficiency measures; and (iii)
15        expected energy savings, itemized by technology. If
16        the subparagraph (D) audit report identifies that the
17        customer currently utilizes the best available energy
18        efficient technology, equipment, programs, and
19        operations, the customer may provide a statement that
20        more efficient technology, equipment, programs, and
21        operations are not reasonably available as a means of
22        satisfying this subparagraph (E); and
23            (F) the effective date of the opt out, which will
24        be the next January 1 following notice of the opt out.
25        (3) Upon receipt of a properly and timely noticed
26    request for opt out submitted by an eligible large private

 

 

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1    energy customer, the retail electric utility shall grant
2    the request, file the request with the Commission and,
3    beginning January 1 of the following year, the opted out
4    customer shall no longer be assessed the costs of the plan
5    and shall be prohibited from participating in that 4-year
6    plan cycle to give the retail utility the certainty to
7    design program plan proposals.
8        (4) Upon a customer's election to opt out under
9    paragraphs (1) and (2) of this subsection (l) and
10    commencing on the effective date of said opt out, the
11    account properly identified in the customer's notice under
12    paragraph (2) shall not be subject to any cost recovery
13    and shall not be eligible to participate in, or directly
14    benefit from, compliance with energy efficiency cumulative
15    persisting savings requirements under subsections (a)
16    through (j).
17        (5) A utility's cumulative persisting annual savings
18    targets will exclude any opted out load.
19        (6) The request to opt out is only valid for the
20    requested plan cycle. An eligible large private energy
21    customer must also request to opt out for future energy
22    plan cycles, otherwise the customer will be included in
23    the future energy plan cycle. For the calendar years
24    covered by a multi-year plan commencing after December 31,
25    2017, subsections (a) through (j) of this Section do not
26    apply to any retail customers of an electric utility that

 

 

10200HB3666sam001- 672 -LRB102 13525 AMC 28481 a

1    serves more than 3,000,000 retail customers in the State
2    and whose total highest 30 minute demand was more than
3    10,000 kilowatts, or any retail customers of an electric
4    utility that serves less than 3,000,000 retail customers
5    but more than 500,000 retail customers in the State and
6    whose total highest 15 minute demand was more than 10,000
7    kilowatts. For purposes of this subsection (l), "retail
8    customer" has the meaning set forth in Section 16-102 of
9    this Act. A determination of whether this subsection is
10    applicable to a customer shall be made for each multi-year
11    plan beginning after December 31, 2017. The criteria for
12    determining whether this subsection (l) is applicable to a
13    retail customer shall be based on the 12 consecutive
14    billing periods prior to the start of the first year of
15    each such multi-year plan.
16    (m) Notwithstanding the requirements of this Section, as
17part of a proceeding to approve a multi-year plan under
18subsections (f) and (g) of this Section if the multi-year plan
19has been designed to maximize savings, but does not meet the
20cost cap limitations of this Section, the Commission shall
21reduce the amount of energy efficiency measures implemented
22for any single year, and whose costs are recovered under
23subsection (d) of this Section, by an amount necessary to
24limit the estimated average net increase due to the cost of the
25measures to no more than
26        (1) 3.5% for each of the 4 years beginning January 1,

 

 

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1    2018,
2        (2) (blank), 3.75% for each of the 4 years beginning
3    January 1, 2022, and
4        (3) 4% for each of the 4 5 years beginning January 1,
5    2022 2026,
6        (4) 4.25% for the 4 years beginning January 1, 2026,
7    and
8        (5) 4.25% plus an increase sufficient to account for
9    the rate of inflation between January 1, 2026 and January
10    1 of the first year of each subsequent 4-year plan cycle,
11of the average amount paid per kilowatthour by residential
12eligible retail customers during calendar year 2015. An
13electric utility may plan to spend up to 10% more in any year
14during an applicable multi-year plan period to
15cost-effectively achieve additional savings so long as the
16average over the applicable multi-year plan period does not
17exceed the percentages defined in items (1) through (5). To
18determine the total amount that may be spent by an electric
19utility in any single year, the applicable percentage of the
20average amount paid per kilowatthour shall be multiplied by
21the total amount of energy delivered by such electric utility
22in the calendar year 2015, adjusted to reflect the proportion
23of the utility's load attributable to customers that have
24opted out of who are exempt from subsections (a) through (j) of
25this Section under subsection (l) of this Section. For
26purposes of this subsection (m), the amount paid per

 

 

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1kilowatthour includes, without limitation, estimated amounts
2paid for supply, transmission, distribution, surcharges, and
3add-on taxes. For purposes of this Section, "eligible retail
4customers" shall have the meaning set forth in Section
516-111.5 of this Act. Once the Commission has approved a plan
6under subsections (f) and (g) of this Section, no subsequent
7rate impact determinations shall be made.
8    (n) A utility shall take advantage of the efficiencies
9available through existing Illinois Home Weatherization
10Assistance Program infrastructure and services, such as
11enrollment, marketing, quality assurance and implementation,
12which can reduce the need for similar services at a lower cost
13than utility-only programs, subject to capacity constraints at
14community action agencies, for both single-family and
15multifamily weatherization services, to the extent Illinois
16Home Weatherization Assistance Program CAAs provide
17multifamily services. A utility's plan shall demonstrate that
18in formulating annual weatherization budgets, it has sought
19input and coordination with community action agencies
20regarding agencies' capacity to expand and maximize Illinois
21Home Weatherization Assistance Program delivery using the
22ratepayer dollars collected under this Section.
23(Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)
 
24    (220 ILCS 5/8-201.8 new)
25    Sec. 8-201.8. Prohibition on late payment fees for

 

 

10200HB3666sam001- 675 -LRB102 13525 AMC 28481 a

1low-income residential customers or applicants.
2    (a) Notwithstanding any other provision of this Act, as of
3the effective date of this amendatory Act of the 102nd General
4Assembly, an electric utility shall not charge a low-income
5residential customer or applicant a fee, charge, or penalty
6for late payment of any utility bill or invoice.
7Notwithstanding any other provision of this Act, as of January
81, 2023, a natural gas utility shall not charge a low-income
9residential customer or applicant a fee, charge, or penalty
10for late payment of any utility bill or invoice.
11    (b) As used in this Section, "low-income residential
12customer or applicant" means: (i) a member of a household at or
13below 80% of the latest median household income as reported by
14the United States Census Bureau for the most applicable
15community or county; (ii) a member of a household at or below
16150% of the federal poverty level; (iii) a person who is
17eligible for the Illinois Low Income Home Energy Assistance
18Program (LIHEAP) as defined in the Energy Assistance Act; (iv)
19a person who is eligible to participate in the Percentage of
20Income Payment Plan (PIPP or PIP Plan) as defined in the Energy
21Assistance Act; or (v) a person who is eligible to receive
22Lifeline service as defined in the Universal Service Telephone
23Service Protection Law of 1985.
 
24    (220 ILCS 5/8-201.10 new)
25    Sec. 8-201.10. Disconnection and credit and collections

 

 

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1reporting.
2    (a) The Commission shall require all gas, electric, water
3and sewer public utilities under its authority to submit an
4annual report by May 1, 2022 and every May 1 thereafter,
5reporting and making publicly available in executable,
6electronic spreadsheet format, by zip code, on the number of
7disconnections for nonpayment and reconnections that occurred
8in the immediately preceding calendar year.
9    (b) Each such public utility in its annual report shall
10report to the Commission and make publicly available in
11executable, electronic spreadsheet format the following
12information, by zip code, for the immediately preceding
13calendar year:
14        (1) the number of customers, by customer class and
15    type of utility service provided, during each month;
16        (2) the number of customers, by customer class and
17    type of utility service, receiving disconnection notices
18    during each month;
19        (3) the number of customers, by customer class and
20    type of utility service, disconnected for nonpayment
21    during each month;
22        (4) the number of customers, by customer class and
23    type of utility service, reconnected because they have
24    paid in full or set up payment arrangements during each
25    month;
26        (5) the number of new deferred payment agreements, by

 

 

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1    customer class and type of utility service, each month;
2        (6) the number of customers, by customer class and
3    type of utility service, taking service at the beginning
4    of the month under existing deferred payment arrangements;
5        (7) the number of customers, by customer class and
6    type of utility service, completing deferred payment
7    arrangements during the month;
8        (8) the number of payment agreements, by customer
9    class and type of utility service, that failed during each
10    month;
11        (9) the number of customers, by customer class and
12    type of utility service, renegotiating deferred payment
13    arrangements during the month;
14        (10) the number of customers, by customer class and
15    type of utility service, assessed late payment fees or
16    charges during the month;
17        (11) the number of customers, by customer class and
18    type of utility service, taking service at the beginning
19    of the month under existing medical payment arrangements;
20        (12) the number of customers, by utility service,
21    completing medical payment arrangements during the month;
22        (13) the number of customers, by utility service,
23    enrolling in new medical payment arrangements during the
24    month;
25        (14) the number of customers, by utility service,
26    renegotiating medical payment arrangements plans during

 

 

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1    the month;
2        (15) the number of customers, by customer class and
3    utility service, with required deposits with the company
4    at the beginning of the month;
5        (16) the number of customers, by customer class and
6    utility service, required to submit new deposits or
7    increased deposits during the month;
8        (17) the number of customers, by customer class and
9    utility service, whose required deposits were reduced in
10    part or forgone during the month;
11        (18) the number of customers, by customer class and
12    utility service, whose deposits were returned in full
13    during the month;
14        (19) the number of customers, by customer class and
15    utility service, with past due amounts greater than 30
16    days past due at the beginning of the month and taking
17    service at the beginning of the month under existing
18    deferred payment arrangements;
19        (20) the dollar volume of past due accounts, by
20    customer class and utility service, for customers with
21    past due amounts greater than 30 days past due at the
22    beginning of the month and taking service at the beginning
23    of the month under existing deferred payment arrangements;
24        (21) the number of customers, by customer class and
25    utility service, with past due amounts greater than 30
26    days past due at the beginning of the month and not taking

 

 

10200HB3666sam001- 679 -LRB102 13525 AMC 28481 a

1    service at the beginning of the month under existing
2    deferred payment arrangements; and
3        (22) the dollar volume of past due accounts, by
4    customer class and utility service, for customers with
5    past due amounts greater than 30 days past due at the
6    beginning of the month and not taking service at the
7    beginning of the month under existing deferred payment
8    arrangements.
9    (c) The Commission may specify the executable, electronic
10spreadsheet format that utilities must adhere to when
11submitting the information required by this Section.
12Notwithstanding the requirements of this Section, the
13Commission may establish an online reporting system and
14require each public utility to report using the online
15reporting system instead of filing information in executable,
16electronic spreadsheet format. The Commission shall make each
17annual report submitted by each public utility publicly
18available on its website within 30 days of receipt.
19    (d) The Commission shall require all gas, electric, water
20and sewer public utilities under its authority to submit an
21annual report by May 1, 2022 and every May 1 thereafter,
22detailing the number of disconnections for nonpayment and
23reconnections that occurred in the immediately preceding
24calendar year.
25    (e) Each such public utility in its annual report shall
26include the following information for the immediately

 

 

10200HB3666sam001- 680 -LRB102 13525 AMC 28481 a

1preceding calendar year:
2        (1) the number of customers, by customer class, during
3    each month;
4        (2) the number of customers, by customer class,
5    disconnected for nonpayment during each month;
6        (3) the number of customers, by customer class,
7    reconnected because they have paid in full or set up
8    payment arrangements during each month; and
9        (4) the number of customers, by customer class, who
10    have set up payment arrangements each month.
11    (f) The Commission shall make each annual report submitted
12by each public utility publicly available on its website
13within 30 days of receipt.
 
14    (220 ILCS 5/8-218 new)
15    Sec. 8-218. Utility-scale pilot projects.
16    (a) Electric utilities serving greater than 500,000
17customers but less than 3,000,000 customers may propose, plan
18for, construct, install, control, own, manage, or operate up
19to 2 pilot projects consisting of utility-scale photovoltaic
20energy generation facilities. Energy storage facilities that
21are planned for, constructed, installed, controlled, owned,
22managed, or operated may be constructed in connection with the
23photovoltaic electricity generation pilot projects.
24    (b) Pilot projects shall be sited in equity investment
25eligible communities in or near the towns of Peoria and East

 

 

10200HB3666sam001- 681 -LRB102 13525 AMC 28481 a

1St. Louis and must result in economic benefits for the members
2of the communities in which the project will be located. The
3amount paid per pilot project with or without energy storage
4facilities cannot exceed $20,000,000. The electric utility's
5costs of planning for, constructing, installing, controlling,
6owning, managing, or operating the photovoltaic electricity
7generation facilities and energy storage facilities may be
8recovered, on a kilowatt hour basis, in the electric utility's
9rates for delivery service established pursuant to Article XVI
10or Article IX of this Act, and for purposes of cost recovery
11the photovoltaic electricity production facilities, may be
12treated as distribution assets, provided: (1) the Commission
13shall have the authority to determine the reasonableness of
14the costs of the facilities, and (2) any monetary value of
15power and energy from the facilities shall be credited against
16the delivery services revenue requirement.
17    (c) Any electric utility seeking to propose, plan for,
18construct, install, control, own, manage, or operate a pilot
19project pursuant to this Section must commit to using a
20diverse and equitable workforce and a diverse set of
21contractors, including minority-owned businesses,
22disadvantaged businesses, trade unions, graduates of any
23workforce training programs established by this amendatory Act
24of the 102nd General Assembly, and small businesses. An
25electric utility must comply with the equity commitment
26requirements in subsection (c-10) of Section 1-75 of the

 

 

10200HB3666sam001- 682 -LRB102 13525 AMC 28481 a

1Illinois Power Agency Act. The electric utility must certify
2that not less than the prevailing wage will be paid to
3employees engaged in construction activities associated with
4the pilot project. The electric utility must file a project
5labor agreement, as defined in the Illinois Power Agency Act,
6with the Commission prior to constructing, installing,
7controlling, or owning a pilot project authorized by this
8Section.
 
9    (220 ILCS 5/8-402.2 new)
10    Sec. 8-402.2. Public Schools Carbon-Free Assessment
11programs.
12    (a) Within one year after the effective date of this
13amendatory Act of the 102nd General Assembly, each electric
14utility serving over 500,000 retail customers in this State
15shall implement a Public Schools Carbon-Free Assessment
16program.
17    (b) Each utility's Public Schools Carbon-Free Assessment
18program shall include the following requirements:
19        (1) Each plan shall be designed to offer within the
20    utility's service territory to assist public schools, as
21    defined by Section 1-3 of the School Code, to increase the
22    efficiency of their energy usage, to reduce the carbon
23    emissions associated with their energy usage, and to move
24    toward a goal of public schools being carbon-free in their
25    energy usage by 2030. The program shall include a target

 

 

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1    of completing Public Schools Carbon-Free Assessment for
2    all public schools in the utility's service territory by
3    December 31, 2029.
4        (2) The Public Schools Carbon-Free Assessment shall be
5    a generally standardized assessment, but may incorporate
6    flexibility to reflect the circumstances of individual
7    public schools and public school districts.
8        (3) The Public Schools Carbon-Free Assessment shall
9    include, but not be limited to, comprehensive analyses of
10    the following subjects:
11            (A) The top energy efficiency savings
12        opportunities for the public school, by energy saved;
13            (B) The total achievable solar energy potential on
14        or nearby a public school's premises and able to
15        provide power to a school;
16            (C) The infrastructure required to support
17        electrification of the facility's space heating and
18        water heating needs;
19            (D) The infrastructure requirements to support
20        electrification of a school's transportation needs;
21        and
22            (E) The investments required to achieve a WELL
23        Certification or similar certification as determined
24        through methods developed and updated by the
25        International WELL Building Institute or similar or
26        successor organizations.

 

 

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1        (4) The Public Schools Carbon-Free Assessment also
2    shall include, but not be limited to, mechanical
3    insulation evaluation inspection and inspection of the
4    building envelope(s).
5        (5) With respect to those public school construction
6    projects for public schools within the service territory
7    of a utility serving over 500,000 retail customers in this
8    State and for which a public school district applies for a
9    grant under Section 5-40 of the School Construction Law on
10    or after June 1, 2023, the district must submit a copy of
11    the applicable Public Schools Carbon-Free Assessment
12    report, or, if no such Public Schools Carbon-Free
13    Assessment has been performed, request the applicable
14    utility to perform such a Public Schools Carbon-Free
15    Assessment and submit a copy of the Public Schools
16    Carbon-Free Assessment report promptly when it becomes
17    available. The Public Schools Carbon-Free Assessment
18    report shall include, but not limited to, an energy audit
19    of both the building envelope and the building's
20    mechanical insulation system. It shall also include an
21    inspection of both the building envelope and the
22    mechanical insulation system. The district must
23    demonstrate how the construction project is designed and
24    managed to achieve the goals that all public elementary
25    and secondary school facilities in the State are able to
26    be powered by clean energy by 2030, and for such

 

 

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1    facilities to achieve carbon-free energy sources for space
2    heat, water heat, and transportation by 2050.
3        (6) The results of each Public Schools Carbon-Free
4    Assessment shall be memorialized by the utility or by a
5    third party acting on behalf of the utility in a usable
6    report form and shall be provided to the applicable public
7    school. Each utility shall be required to retain a copy of
8    each Public Schools Carbon-Free Assessment report and to
9    provide confidential copies of each report to the Illinois
10    Power Agency and the Illinois Capital Development Board
11    within 3 months of its completion.
12        (7) The Public Schools Carbon-Free Assessment shall be
13    conducted in coordination with each utility's energy
14    efficiency and demand-response plans under Sections 8-103,
15    8-103A, and 8-103B of this Act, to the extent applicable.
16    Nothing in this Section is intended to modify or require
17    modification of those plans. However, the utility may
18    request a modification of a plan approved by the
19    Commission, and the Commission may approve the requested
20    modification, if the modification is consistent with the
21    provisions of this Section and Section 8-103B of this Act.
22        (8) If there are no other providers of assessments
23    that are substantively the same as those being performed
24    by utilities pursuant to this Section by 2024, a utility
25    that has a Public Schools Carbon-Free Assessment program
26    may offer assessments to public schools that are not

 

 

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1    served by a utility subject to this Section at the
2    utility's cost.
3        (9) The Public Schools Carbon-Free Assessment shall be
4    offered to and performed for public schools in the
5    utility's service territory on a complimentary basis by
6    each utility, with no Assessment fee charged to the public
7    schools for the Assessments. Nothing in this Section is
8    intended to prohibit the utility from recovering through
9    rates approved by the Commission the utility's prudent and
10    reasonable costs of complying with this Section.
11        (10) Utilities shall make efforts to prioritize the
12    completion of Public Schools Carbon-Free Assessments for
13    the following school districts by December 31, 2022: East
14    St. Louis School District 189, Harvey School District 152,
15    Thornton Township High School District 205.
 
16    (220 ILCS 5/8-406)  (from Ch. 111 2/3, par. 8-406)
17    Sec. 8-406. Certificate of public convenience and
18necessity.
19    (a) No public utility not owning any city or village
20franchise nor engaged in performing any public service or in
21furnishing any product or commodity within this State as of
22July 1, 1921 and not possessing a certificate of public
23convenience and necessity from the Illinois Commerce
24Commission, the State Public Utilities Commission or the
25Public Utilities Commission, at the time this amendatory Act

 

 

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1of 1985 goes into effect, shall transact any business in this
2State until it shall have obtained a certificate from the
3Commission that public convenience and necessity require the
4transaction of such business.
5    (b) No public utility shall begin the construction of any
6new plant, equipment, property or facility which is not in
7substitution of any existing plant, equipment, property or
8facility or any extension or alteration thereof or in addition
9thereto, unless and until it shall have obtained from the
10Commission a certificate that public convenience and necessity
11require such construction. Whenever after a hearing the
12Commission determines that any new construction or the
13transaction of any business by a public utility will promote
14the public convenience and is necessary thereto, it shall have
15the power to issue certificates of public convenience and
16necessity. The Commission shall determine that proposed
17construction will promote the public convenience and necessity
18only if the utility demonstrates: (1) that the proposed
19construction is necessary to provide adequate, reliable, and
20efficient service to its customers and is the least-cost means
21of satisfying the service needs of its customers or that the
22proposed construction will promote the development of an
23effectively competitive electricity market that operates
24efficiently, is equitable to all customers, and is the least
25cost means of satisfying those objectives; (2) that the
26utility is capable of efficiently managing and supervising the

 

 

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1construction process and has taken sufficient action to ensure
2adequate and efficient construction and supervision thereof;
3and (3) that the utility is capable of financing the proposed
4construction without significant adverse financial
5consequences for the utility or its customers.
6    (b-5) As used in this subsection (b-5):
7    "Qualifying direct current applicant" means an entity that
8seeks to provide direct current bulk transmission service for
9the purpose of transporting electric energy in interstate
10commerce.
11    "Qualifying direct current project" means a high voltage
12direct current electric service line that crosses at least one
13Illinois border, the Illinois portion of which is physically
14located within the region of the Midcontinent Independent
15System Operator, Inc., or its successor organization, and runs
16through the counties of Pike, Scott, Greene, Macoupin,
17Montgomery, Christian, Shelby, Cumberland, and Clark, is
18capable of transmitting electricity at voltages of 345kv or
19above, and may also include associated interconnected
20alternating current interconnection facilities in this State
21that are part of the proposed project and reasonably necessary
22to connect the project with other portions of the grid.
23    Notwithstanding any other provision of this Act, a
24qualifying direct current applicant that does not own,
25control, operate, or manage, within this State, any plant,
26equipment, or property used or to be used for the transmission

 

 

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1of electricity at the time of its application or of the
2Commission's order may file an application on or before
3December 31, 2023 with the Commission pursuant to this Section
4or Section 8-406.1 for, and the Commission may grant, a
5certificate of public convenience and necessity to construct,
6operate, and maintain a qualifying direct current project. The
7qualifying direct current applicant may also include in the
8application requests for authority under Section 8-503. The
9Commission shall grant the application for a certificate of
10public convenience and necessity and requests for authority
11under Section 8-503 if it finds that the qualifying direct
12current applicant and the proposed qualifying direct current
13project satisfy the requirements of this subsection and
14otherwise satisfy the criteria of this Section or Section
158-406.1 and the criteria of Section 8-503, as applicable to
16the application and to the extent such criteria are not
17superseded by the provisions of this subsection. The
18Commission's order on the application for the certificate of
19public convenience and necessity shall also include the
20Commission's findings and determinations on the request or
21requests for authority pursuant to Section 8-503. Prior to
22filing its application under either this Section or Section
238-406.1, the qualifying direct current applicant shall conduct
243 public meetings in accordance with subsection (h) of this
25Section. If the qualifying direct current applicant
26demonstrates in its application that the proposed qualifying

 

 

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1direct current project is designed to deliver electricity to a
2point or points on the electric transmission grid in either or
3both the PJM Interconnection, LLC or the Midcontinent
4Independent System Operator, Inc., or their respective
5successor organizations, the proposed qualifying direct
6current project shall be deemed to be, and the Commission
7shall find it to be, for public use. If the qualifying direct
8current applicant further demonstrates in its application that
9the proposed transmission project has a capacity of 1,000
10megawatts or larger and a voltage level of 345 kilovolts or
11greater, the proposed transmission project shall be deemed to
12satisfy, and the Commission shall find that it satisfies, the
13criteria stated in item (1) of subsection (b) of this Section
14or in paragraph (1) of subsection (f) of Section 8-406.1, as
15applicable to the application, without the taking of
16additional evidence on these criteria. Prior to the transfer
17of functional control of any transmission assets to a regional
18transmission organization, a qualifying direct current
19applicant shall request Commission approval to join a regional
20transmission organization in an application filed pursuant to
21this subsection (b-5) or separately pursuant to Section 7-102
22of this Act. The Commission may grant permission to a
23qualifying direct current applicant to join a regional
24transmission organization if it finds that the membership, and
25associated transfer of functional control of transmission
26assets, benefits Illinois customers in light of the attendant

 

 

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1costs and is otherwise in the public interest. Nothing in this
2subsection (b-5) requires a qualifying direct current
3applicant to join a regional transmission organization.
4Nothing in this subsection (b-5) requires the owner or
5operator of a high voltage direct current transmission line
6that is not a qualifying direct current project to obtain a
7certificate of public convenience and necessity to the extent
8it is not otherwise required by this Section 8-406 or any other
9provision of this Act.
10    (c) After the effective date of this amendatory Act of
111987, no construction shall commence on any new nuclear power
12plant to be located within this State, and no certificate of
13public convenience and necessity or other authorization shall
14be issued therefor by the Commission, until the Director of
15the Illinois Environmental Protection Agency finds that the
16United States Government, through its authorized agency, has
17identified and approved a demonstrable technology or means for
18the disposal of high level nuclear waste, or until such
19construction has been specifically approved by a statute
20enacted by the General Assembly.
21    As used in this Section, "high level nuclear waste" means
22those aqueous wastes resulting from the operation of the first
23cycle of the solvent extraction system or equivalent and the
24concentrated wastes of the subsequent extraction cycles or
25equivalent in a facility for reprocessing irradiated reactor
26fuel and shall include spent fuel assemblies prior to fuel

 

 

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1reprocessing.
2    (d) In making its determination, the Commission shall
3attach primary weight to the cost or cost savings to the
4customers of the utility. The Commission may consider any or
5all factors which will or may affect such cost or cost savings,
6including the public utility's engineering judgment regarding
7the materials used for construction.
8    (e) The Commission may issue a temporary certificate which
9shall remain in force not to exceed one year in cases of
10emergency, to assure maintenance of adequate service or to
11serve particular customers, without notice or hearing, pending
12the determination of an application for a certificate, and may
13by regulation exempt from the requirements of this Section
14temporary acts or operations for which the issuance of a
15certificate will not be required in the public interest.
16    A public utility shall not be required to obtain but may
17apply for and obtain a certificate of public convenience and
18necessity pursuant to this Section with respect to any matter
19as to which it has received the authorization or order of the
20Commission under the Electric Supplier Act, and any such
21authorization or order granted a public utility by the
22Commission under that Act shall as between public utilities be
23deemed to be, and shall have except as provided in that Act the
24same force and effect as, a certificate of public convenience
25and necessity issued pursuant to this Section.
26    No electric cooperative shall be made or shall become a

 

 

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1party to or shall be entitled to be heard or to otherwise
2appear or participate in any proceeding initiated under this
3Section for authorization of power plant construction and as
4to matters as to which a remedy is available under The Electric
5Supplier Act.
6    (f) Such certificates may be altered or modified by the
7Commission, upon its own motion or upon application by the
8person or corporation affected. Unless exercised within a
9period of 2 years from the grant thereof authority conferred
10by a certificate of convenience and necessity issued by the
11Commission shall be null and void.
12    No certificate of public convenience and necessity shall
13be construed as granting a monopoly or an exclusive privilege,
14immunity or franchise.
15    (g) A public utility that undertakes any of the actions
16described in items (1) through (3) of this subsection (g) or
17that has obtained approval pursuant to Section 8-406.1 of this
18Act shall not be required to comply with the requirements of
19this Section to the extent such requirements otherwise would
20apply. For purposes of this Section and Section 8-406.1 of
21this Act, "high voltage electric service line" means an
22electric line having a design voltage of 100,000 or more. For
23purposes of this subsection (g), a public utility may do any of
24the following:
25        (1) replace or upgrade any existing high voltage
26    electric service line and related facilities,

 

 

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1    notwithstanding its length;
2        (2) relocate any existing high voltage electric
3    service line and related facilities, notwithstanding its
4    length, to accommodate construction or expansion of a
5    roadway or other transportation infrastructure; or
6        (3) construct a high voltage electric service line and
7    related facilities that is constructed solely to serve a
8    single customer's premises or to provide a generator
9    interconnection to the public utility's transmission
10    system and that will pass under or over the premises owned
11    by the customer or generator to be served or under or over
12    premises for which the customer or generator has secured
13    the necessary right of way.
14    (h) A public utility seeking to construct a high-voltage
15electric service line and related facilities (Project) must
16show that the utility has held a minimum of 2 pre-filing public
17meetings to receive public comment concerning the Project in
18each county where the Project is to be located, no earlier than
196 months prior to filing an application for a certificate of
20public convenience and necessity from the Commission. Notice
21of the public meeting shall be published in a newspaper of
22general circulation within the affected county once a week for
233 consecutive weeks, beginning no earlier than one month prior
24to the first public meeting. If the Project traverses 2
25contiguous counties and where in one county the transmission
26line mileage and number of landowners over whose property the

 

 

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1proposed route traverses is one-fifth or less of the
2transmission line mileage and number of such landowners of the
3other county, then the utility may combine the 2 pre-filing
4meetings in the county with the greater transmission line
5mileage and affected landowners. All other requirements
6regarding pre-filing meetings shall apply in both counties.
7Notice of the public meeting, including a description of the
8Project, must be provided in writing to the clerk of each
9county where the Project is to be located. A representative of
10the Commission shall be invited to each pre-filing public
11meeting.
12    (i) For applications filed after the effective date of
13this amendatory Act of the 99th General Assembly, the
14Commission shall by registered mail notify each owner of
15record of land, as identified in the records of the relevant
16county tax assessor, included in the right-of-way over which
17the utility seeks in its application to construct a
18high-voltage electric line of the time and place scheduled for
19the initial hearing on the public utility's application. The
20utility shall reimburse the Commission for the cost of the
21postage and supplies incurred for mailing the notice.
22(Source: P.A. 99-399, eff. 8-18-15.)
 
23    (220 ILCS 5/8-512 new)
24    Sec. 8-512. Renewable energy access plan.
25    (a) It is the policy of this State to promote

 

 

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1cost-effective transmission system development that ensures
2reliability of the electric transmission system, lowers carbon
3emissions, minimizes long-term costs for consumers, and
4supports the electric policy goals of this State. The General
5Assembly finds that:
6        (1) Transmission planning, primarily for reliability
7    purposes, but also for economic and public policy reasons
8    is conducted by regional transmission organizations in
9    which transmission-owning Illinois utilities and other
10    stakeholders are members.
11        (2) Order No. 1000 of the Federal Energy Regulatory
12    Commission requires regional transmission organizations to
13    plan for transmission system needs in light of State
14    public policies and to accept input from states during the
15    transmission system planning processes.
16        (3) The State of Illinois does not currently have a
17    comprehensive power and environmental policy planning
18    process to identify transmission infrastructure needs that
19    can serve as a vital input into the regional and
20    interregional transmission organization planning
21    processes conducted under Order No. 1000 and other laws
22    and regulations.
23        (4) This State is an electricity generation and power
24    transmission hub, and can leverage that position to invest
25    in infrastructure that enables new and existing Illinois
26    generators to meet the public policy goals of the State of

 

 

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1    Illinois and of interconnected states while
2    cost-effectively supporting tens of thousands of jobs in
3    the renewable energy sector in this State.
4        (5) The nation has a need to readily access this
5    State's low-cost, clean electric power, and this State
6    also desires access to clean energy resources in other
7    states to develop and support its low-carbon economy and
8    keep electricity prices low in Illinois and interconnected
9    States.
10        (6) Existing transmission infrastructure may constrain
11    the State's achievement of 100% renewable energy by 2050,
12    the accelerated adoption of electric vehicles in a just
13    and equitable way, and electrification of additional
14    sectors of the Illinois economy.
15        (7) Transmission system congestion within this State
16    and the regional transmission organizations serving this
17    State limits the ability of this State's existing and new
18    electric generation facilities that do not emit carbon
19    dioxide, including renewable energy resources and zero
20    emission facilities, to serve the public policy goals of
21    this State and other states, which constrains investment
22    in this State.
23        (8) Investment in infrastructure to support existing
24    and new electric generation facilities that do not emit
25    carbon dioxide, including renewable energy resources and
26    zero emission facilities, stimulates significant economic

 

 

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1    development and job growth in this State, as well as
2    creates environmental and public health benefits in this
3    State.
4        (9) Creating a forward-looking plan for this State's
5    electric transmission infrastructure, as opposed to
6    relying on case-by-case development and repeated marginal
7    upgrades, will achieve a lower-cost system for Illinois'
8    electricity customers. A forward-looking plan can also
9    help integrate and achieve a comprehensive set of
10    objectives and multiple state, regional, and national
11    policy goals.
12        (10) Alternatives to overhead electric transmission
13    lines can achieve cost-effective resolution of system
14    impacts and warrant investigation of the circumstances
15    under which those alternatives should be considered and
16    approved. The alternatives are likely to be beneficial as
17    investment in electric transmission infrastructure moves
18    forward.
19        (11) Because transmission planning is conducted
20    primarily by the regional transmission organizations, the
21    Commission should be advocating for the State's interests
22    at the regional transmission organizations to ensure that
23    such planning facilitates the State's policies and goals,
24    including overall consumer savings, power system
25    reliability, economic development, environmental
26    improvement, and carbon reduction.

 

 

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1    (b) Consistent with the findings identified in subsection
2(a), the Commission shall open an investigation to develop and
3adopt a renewable energy access plan no later than December
431, 2022. To assist and support the Commission in the
5development of the plan, the Commission shall retain the
6services of technical and policy experts with relevant fields
7of expertise, solicit technical and policy analysis from the
8public, and provide for a 120-day open public comment period
9after publication of a draft report, which shall be published
10no later than 90 days after the comment period ends. The plan
11shall, at a minimum, do the following:
12        (1) designate renewable energy access plan zones
13    throughout this State in areas in which renewable energy
14    resources and suitable land areas are sufficient for
15    developing generating capacity from renewable energy
16    technologies;
17        (2) develop a plan to achieve transmission capacity
18    necessary to deliver the electric output from renewable
19    energy technologies in the renewable energy access plan
20    zones to customers in Illinois and other states in a
21    manner that is most beneficial and cost-effective to
22    customers;
23        (3) use this State's position as an electricity
24    generation and power transmission hub to create new
25    investment in this State's renewable energy resources;
26        (4) consider programs, policies, and electric

 

 

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1    transmission projects that can be adopted within this
2    State that promote the cost-effective delivery of power
3    from renewable energy resources interconnected to the bulk
4    electric system to meet the renewable portfolio standard
5    targets under subsection (c) of Section 1-75 of the
6    Illinois Power Agency Act;
7        (5) consider proposals to improve regional
8    transmission organizations' regional and interregional
9    system planning processes, especially proposals that
10    reduce costs and emissions, create jobs, and increase
11    State and regional power system reliability to prevent
12    high-cost outages that can endanger lives, and analyze of
13    how those proposals would improve reliability and
14    cost-effective delivery of electricity in Illinois and the
15    region;
16        (6) make findings and policy recommendations based on
17    technical and policy analysis regarding locations of
18    renewable energy access plan zones and the transmission
19    system developments needed to cost-effectively achieve the
20    public policy goals identified herein; and
21        (7) present the Commission's conclusions and proposed
22    recommendations based on its analysis and use the findings
23    and policy recommendations to determine actions that the
24    Commission should take.
25    (c) No later than December 31, 2025, and every other year
26thereafter, the Commission shall open an investigation to

 

 

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1develop and adopt an updated renewable energy access plan
2that, at a minimum, evaluates the implementation and
3effectiveness of the renewable energy access plan, recommends
4improvements to the renewable energy access plan, and provides
5changes to transmission capacity necessary to deliver electric
6output from the renewable energy access plan zones.
 
7    (220 ILCS 5/9-228 new)
8    Sec. 9-228. Limits on public utility expenses. The
9Commission shall not consider any of the following as an
10expense of any public utility company, including any
11allocation of those costs to the public utility from an
12affiliate or corporate parent, for the purpose of determining
13any rate or charge, any amount expended for:
14        (1) the pension or other post-employment benefits for
15    an employee convicted of committing a criminal act in the
16    course of his or her work with the utility;
17        (2) any severance or post-employment costs for an
18    employee convicted of committing a criminal act in the
19    course of his or her work with the utility; or
20        (3) criminal penalties, fines, fees, and costs related
21    to criminal charges, criminal investigations, or deferred
22    prosecution agreements.
 
23    (220 ILCS 5/9-229)
24    Sec. 9-229. Consideration of attorney and expert

 

 

10200HB3666sam001- 702 -LRB102 13525 AMC 28481 a

1compensation as an expense and intervenor compensation fund.
2    (a) The Commission shall specifically assess the justness
3and reasonableness of any amount expended by a public utility
4to compensate attorneys or technical experts to prepare and
5litigate a general rate case filing. This issue shall be
6expressly addressed in the Commission's final order.
7    (b) The State of Illinois shall create a Consumer
8Intervenor Compensation Fund subject to the following:
9        (1) Provision of compensation for Consumer Interest
10    Representatives that intervene in Illinois Commerce
11    Commission proceedings will increase public engagement,
12    encourage additional transparency, expand the information
13    available to the Commission, and improve decision-making.
14        (2) As used in this Section, "Consumer interest
15    representative" means:
16            (A) a residential utility customer or group of
17        residential utility customers represented by a
18        not-for-profit group or organization registered with
19        the Illinois Attorney General under the Solicitation
20        of Charity Act;
21            (B) representatives of not-for-profit groups or
22        organizations whose membership is limited to
23        residential utility customers; or
24            (C) representatives of not-for-profit groups or
25        organizations whose membership includes Illinois
26        residents and that address the community, economic,

 

 

10200HB3666sam001- 703 -LRB102 13525 AMC 28481 a

1        environmental, or social welfare of Illinois
2        residents, except government agencies or intervenors
3        specifically authorized by Illinois law to participate
4        in Commission proceedings on behalf of Illinois
5        consumers.
6        (3) A consumer interest representative is eligible to
7    receive compensation from the consumer intervenor
8    compensation fund if its participation included lay or
9    expert testimony or legal briefing and argument concerning
10    the expenses, investments, rate design, rate impact, or
11    other matters affecting the pricing, rates, costs or other
12    charges associated with utility service, the Commission
13    adopts a material recommendation related to a significant
14    issue in the docket, and participation caused a
15    significant financial hardship to the participant;
16    however, no consumer interest representative shall be
17    eligible to receive an award pursuant to this Section if
18    the consumer interest representative receives any
19    compensation, funding, or donations, directly or
20    indirectly, from parties that have a financial interest in
21    the outcome of the proceeding.
22        (4) Within 30 days after the effective date of this
23    amendatory Act of the 102nd General Assembly, each utility
24    that files a request for an increase in rates under
25    Article IX or Article XVI shall deposit an amount equal to
26    one half of the rate case attorney and expert expense

 

 

10200HB3666sam001- 704 -LRB102 13525 AMC 28481 a

1    allowed by the Commission, but not to exceed $500,000,
2    into the fund within 35 days of the date of the
3    Commission's final Order in the rate case or 20 days after
4    the denial of rehearing under Section 10-113 of this Act,
5    whichever is later. The Consumer Intervenor Compensation
6    Fund shall be used to provide payment to consumer interest
7    representatives as described in this Section.
8        (5) An electric public utility with 3,000,000 or more
9    retail customers shall contribute $450,000 to the Consumer
10    Intervenor Compensation Fund within 60 days after the
11    effective date of this amendatory Act of the 102nd General
12    Assembly. A combined electric and gas public utility
13    serving fewer than 3,000,000 but more than 500,000 retail
14    customers shall contribute $225,000 to the Consumer
15    Intervenor Compensation Fund within 60 days after the
16    effective date of this amendatory Act of the 102nd General
17    Assembly. A gas public utility with 1,500,000 or more
18    retail customers that is not a combined electric and gas
19    public utility shall contribute $225,000 to the Consumer
20    Intervenor Compensation Fund within 60 days after the
21    effective date of this amendatory Act of the 102nd General
22    Assembly. A gas public utility with fewer than 1,500,000
23    retail customers but more than 300,000 retail customers
24    that is not a combined electric and gas public utility
25    shall contribute $80,000 to the Consumer Intervenor
26    Compensation Fund within 60 days after the effective date

 

 

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1    of this amendatory Act of the 102nd General Assembly. A
2    gas public utility with fewer than 300,000 retail
3    customers that is not a combined electric and gas public
4    utility shall contribute $20,000 to the Consumer
5    Intervenor Compensation Fund within 60 days after the
6    effective date of this amendatory Act of the 102nd General
7    Assembly. A combined electric and gas public utility
8    serving fewer than 500,000 retail customers shall
9    contribute $20,000 to the Consumer Intervenor Compensation
10    Fund within 60 days after the effective date of this
11    amendatory Act of the 102nd General Assembly. A water or
12    sewer public utility serving more than 100,000 retail
13    customers shall contribute $80,000, and a water or sewer
14    public utility serving fewer than 100,000 but more than
15    10,000 retail customers shall contribute $20,000.
16        (6)(A) Prior to the entry of a Final Order in a
17    docketed case, the Commission Administrator shall provide
18    a payment to a consumer interest representative that
19    demonstrates through a verified application for funding
20    that the consumer interest representative's participation
21    or intervention without an award of fees or costs imposes
22    a significant financial hardship based on a schedule to be
23    developed by the Commission. The Administrator may require
24    verification of costs incurred, including statements of
25    hours spent, as a condition to paying the consumer
26    interest representative prior to the entry of a Final

 

 

10200HB3666sam001- 706 -LRB102 13525 AMC 28481 a

1    Order in a docketed case.
2        (B) If the Commission adopts a material recommendation
3    related to a significant issue in the docket and
4    participation caused a financial hardship to the
5    participant, then the consumer interest representative
6    shall be allowed payment for some or all of the consumer
7    interest representative's reasonable attorney's or
8    advocate's fees, reasonable expert witness fees, and other
9    reasonable costs of preparation for and participation in a
10    hearing or proceeding. Expenses related to travel or meals
11    shall not be compensable.
12        (C) The consumer interest representative shall submit
13    an itemized request for compensation to the Consumer
14    Intervenor Compensation Fund, including the advocate's or
15    attorney's reasonable fee rate, the number of hours
16    expended, reasonable expert and expert witness fees, and
17    other reasonable costs for the preparation for and
18    participation in the hearing and briefing within 30 days
19    of the Commission's final order after denial or decision
20    on rehearing, if any.
21        (7) Administration of the Fund.
22        (A) The Consumer Intervenor Compensation Fund is
23    created as a special fund in the State treasury. All
24    disbursements from the Consumer Intervenor Compensation
25    Fund shall be made only upon warrants of the Comptroller
26    drawn upon the Treasurer as custodian of the Fund upon

 

 

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1    vouchers signed by the Executive Director of the
2    Commission or by the person or persons designated by the
3    Director for that purpose. The Comptroller is authorized
4    to draw the warrant upon vouchers so signed. The Treasurer
5    shall accept all warrants so signed and shall be released
6    from liability for all payments made on those warrants.
7    The Consumer Intervenor Compensation Fund shall be
8    administered by an Administrator that is a person or
9    entity that is independent of the Commission. The
10    administrator will be responsible for the prudent
11    management of the Consumer Intervenor Compensation Fund
12    and for recommendations for the award of consumer
13    intervenor compensation from the Consumer Intervenor
14    Compensation Fund. The Commission shall issue a request
15    for qualifications for a third-party program administrator
16    to administer the Consumer Intervenor Compensation Fund.
17    The third-party administrator shall be chosen through a
18    competitive bid process based on selection criteria and
19    requirements developed by the Commission. The Illinois
20    Procurement Code does not apply to the hiring or payment
21    of the Administrator. All Administrator costs may be paid
22    for using monies from the Consumer Intervenor Compensation
23    Fund, but the Program Administrator shall strive to
24    minimize costs in the implementation of the program.
25        (B) The computation of compensation awarded from the
26    fund shall take into consideration the market rates paid

 

 

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1    to persons of comparable training and experience who offer
2    similar services, but may not exceed the comparable market
3    rate for services paid by the public utility as part of its
4    rate case expense.
5        (C)(1) Recommendations on the award of compensation by
6    the administrator shall include consideration of whether
7    the Commission adopted a material recommendation related
8    to a significant issue in the docket and whether
9    participation caused a financial hardship to the
10    participant and the payment of compensation is fair, just
11    and reasonable.
12        (2) Recommendations on the award of compensation by
13    the administrator shall be submitted to the Commission for
14    approval. Unless the Commission initiates an investigation
15    within 45 days after the notice to the Commission, the
16    award of compensation shall be allowed 45 days after
17    notice to the Commission. Such notice shall be given by
18    filing with the Commission on the Commission's e-docket
19    system, and keeping open for public inspection the award
20    for compensation proposed by the Administrator. The
21    Commission shall have power, and it is hereby given
22    authority, either upon complaint or upon its own
23    initiative without complaint, at once, and if it so
24    orders, without answer or other formal pleadings, but upon
25    reasonable notice, to enter upon a hearing concerning the
26    propriety of the award.

 

 

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1    (c) The Commission may adopt rules to implement this
2Section.
3(Source: P.A. 96-33, eff. 7-10-09.)
 
4    (220 ILCS 5/9-241)  (from Ch. 111 2/3, par. 9-241)
5    Sec. 9-241. No public utility shall, as to rates or other
6charges, services, facilities or in other respect, make or
7grant any preference or advantage to any corporation or person
8or subject any corporation or person to any prejudice or
9disadvantage. No public utility shall establish or maintain
10any unreasonable difference as to rates or other charges,
11services, facilities, or in any other respect, either as
12between localities or as between classes of service.
13    However, nothing in this Section shall be construed as
14limiting the authority of the Commission to permit the
15establishment of economic development rates as incentives to
16economic development either in enterprise zones as designated
17by the State of Illinois or in other areas of a utility's
18service area. Such rates should be available to existing
19businesses which demonstrate an increase to existing load as
20well as new businesses which create new load for a utility so
21as to create a more balanced utilization of generating
22capacity. The Commission shall ensure that such rates are
23established at a level which provides a net benefit to
24customers within a public utility's service area.
25    On or before January 1, 2023, the Commission shall conduct

 

 

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1a comprehensive study to assess whether low-income discount
2rates for electric and natural gas residential customers are
3appropriate and the potential design and implementation of any
4such rates. The Commission shall include its findings,
5together with the appropriate recommendations, in a report to
6be provided to the General Assembly. Upon completion of the
7study, the Commission shall have the authority to permit or
8require electric and natural gas utilities to file a tariff
9establishing low-income discount rates.
10    Such study shall assess, at a minimum, the following:
11        (1) customer eligibility requirements, including
12    income-based eligibility and eligibility based on
13    participation in or eligibility for certain public
14    assistance programs;
15        (2) appropriate rate structures, including
16    consideration of tiered discounts for different income
17    levels;
18        (3) appropriate recovery mechanisms, including the
19    consideration of volumetric charges and customer charges;
20        (4) appropriate verification mechanisms;
21        (5) measures to ensure customer confidentiality and
22    data safeguards;
23        (6) outreach and consumer education procedures; and
24        (7) the impact that a low-income discount rate would
25    have on the affordability of delivery service to
26    low-income customers and customers overall.

 

 

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1    The Commission shall adopt rules requiring utility
2companies to produce information, in the form of a mailing,
3and other approved methods of distribution, to its consumers,
4to inform the consumers of available rebates, discounts,
5credits, and other cost-saving mechanisms that can help them
6lower their monthly utility bills, and send out such
7information semi-annually, unless otherwise provided by this
8Article.
9    Prior to October 1, 1989, no public utility providing
10electrical or gas service shall consider the use of solar or
11other nonconventional renewable sources of energy by a
12customer as a basis for establishing higher rates or charges
13for any service or commodity sold to such customer; nor shall a
14public utility subject any customer utilizing such energy
15source or sources to any other prejudice or disadvantage on
16account of such use. No public utility shall without the
17consent of the Commission, charge or receive any greater
18compensation in the aggregate for a lesser commodity, product,
19or service than for a greater commodity, product or service of
20like character.
21    The Commission, in order to expedite the determination of
22rate questions, or to avoid unnecessary and unreasonable
23expense, or to avoid unjust or unreasonable discrimination
24between classes of customers, or, whenever in the judgment of
25the Commission public interest so requires, may, for rate
26making and accounting purposes, or either of them, consider

 

 

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1one or more municipalities either with or without the adjacent
2or intervening rural territory as a regional unit where the
3same public utility serves such region under substantially
4similar conditions, and may within such region prescribe
5uniform rates for consumers or patrons of the same class.
6    Any public utility, with the consent and approval of the
7Commission, may as a basis for the determination of the
8charges made by it classify its service according to the
9amount used, the time when used, the purpose for which used,
10and other relevant factors.
11(Source: P.A. 91-357, eff. 7-29-99.)
 
12    (220 ILCS 5/16-105.5 new)
13    Sec. 16-105.5. Rate case filing and revenue-neutral rate
14design.
15    (a) An electric utility that files a general rate case
16pursuant to Section 9-201 of this Act or a Multi-Year Rate Plan
17pursuant to Section 16-108.18 of this Act may omit the rate
18design component of such filing and subsequently separately
19file this component with the Commission, subject to the
20requirements of subsections (b) and (c) of this Section.
21    (b) If the electric utility makes the election described
22in this Section, then the filing shall be consistent with the
23rate design and cost allocation across customer classes
24approved in the Commission's most recent order regarding the
25electric utility's request for a general adjustment to its

 

 

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1rates entered under Section 9-201, subsection (e) of Section
216-108.5, or Section 16-108.18 of this Act, as applicable.
3    (c) If the electric utility makes the election described
4in this Section, then the following provisions apply to the
5separate filing of the revenue-neutral rate design component:
6        (1) No later than one year after the tariffs
7    implementing the general rate case filing or Multi-year
8    Rate Plan filing, as described in subsection (b) of this
9    Section, are placed into effect, the electric utility
10    shall make a filing with the Commission that proposes
11    changes to the tariffs to incorporate the findings of any
12    final rate design orders of the Commission applicable to
13    the electric utility and entered subsequent to the
14    Commission's approval of the tariffs. If no such orders
15    have been entered, then the electric utility must submit
16    its separate revenue-neutral rate design filing no later
17    than 3 years after the date on which the Commission's most
18    recent final rate design order was entered for the
19    electric utility. The electric utility's separate
20    revenue-neutral rate design filing may either propose
21    revenue-neutral tariff changes or refile the existing
22    tariffs without change, which shall present the Commission
23    with an opportunity to suspend the tariffs and consider
24    revenue-neutral tariff changes related to rate design. The
25    Commission shall, after notice and hearing, enter its
26    order approving, or approving with modification, the

 

 

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1    proposed changes to the tariffs within 240 days after the
2    electric utility's filing. Any changes ordered by the
3    Commission shall become effective at the commencement of
4    the first January monthly billing period that begins no
5    earlier than 30 days after the Commission issues its order
6    adopting such changes.
7        (2) Following Commission approval under paragraph (1)
8    of this subsection (c), the electric utility shall make a
9    filing with the Commission during each subsequent 3-year
10    period that either proposes revenue-neutral tariff changes
11    or refiles the existing tariffs without change, which
12    shall present the Commission with an opportunity to
13    suspend the tariffs and consider revenue-neutral tariff
14    changes related to rate design. The requirements of this
15    paragraph (2) shall terminate at the time that the
16    electric utility files a general rate case or Multi-Year
17    Rate Plan that includes the rate design component.
 
18    (220 ILCS 5/16-105.6 new)
19    Sec. 16-105.6. Amortization of charges or credits.
20    (a) It is in the public interest to mitigate the customer
21bill impacts of large expenses incurred by electric utilities
22by directing that expenses exceeding the applicable threshold
23specified in this Section be amortized over the prescribed
24period. Such amortization will levelize customer bill impacts
25and, in many instances, better align the period of cost

 

 

10200HB3666sam001- 715 -LRB102 13525 AMC 28481 a

1recovery with the period over which customers receive the
2benefit of the expenditure. Accordingly, an electric utility
3that files a general rate increase under Section 9-201 of this
4Act or a Multi-Year Rate Plan under Section 16-108.18 of this
5Act shall amortize, over a 5-year period, each charge or
6credit that exceeds the applicable amount identified in
7subsection (b) of this Section and that relates to (1) a
8workforce reduction program's severance costs; (2) changes in
9accounting rules; (3) changes in law; (4) compliance with any
10Commission-initiated audit; and (5) a single storm or weather
11system, or other similar expense.
12    Any unamortized balance shall be reflected in rate base.
13    In this Section, "changes in law" includes any enactment,
14repeal, or amendment in a law, ordinance, rule, regulation,
15interpretation, permit, license, consent, or order, including
16those relating to taxes, accounting, or environmental matters,
17or in the interpretation or application thereof by any
18governmental authority occurring after the effective date of
19this amendatory Act of the 102nd General Assembly.
20    Nothing in this Section is intended to prohibit the
21Commission from reviewing the prudence and reasonableness of
22the costs amortized pursuant to this Section.
23    (b) An electric utility that serves more than 3,000,000
24customers in the State shall amortize the full amount of each
25charge or credit described in subsection (a) of this Section
26that exceeds $10,000,000 in the applicable calendar year, and

 

 

10200HB3666sam001- 716 -LRB102 13525 AMC 28481 a

1an electric utility that serves less than 3,000,000 customers
2in the State shall amortize the full amount of each such charge
3or credit that exceeds $3,700,000 in the applicable calendar
4year.
 
5    (220 ILCS 5/16-105.7 new)
6    Sec. 16-105.7. Revenue balancing adjustments.
7    (a) It is in the public interest to decouple electric
8utility sales and revenues, to mitigate the impact on
9utilities of energy savings goals, to mitigate a utility's
10disincentive to promote energy efficiency, and to recognize
11changes in sales attributable to weather, electric vehicles
12and other electrification, adoption of distributed energy
13resources, and other volatile or uncontrollable factors
14without adversely affecting utility customers.
15    (b) For the purposes of this Section, "reconciliation
16period" means a period beginning with the January monthly
17billing period and extending through the December monthly
18billing period of the same calendar year.
19    (c) As set forth in subsection (d) of this Section, the
20Commission shall approve a tariff by which distribution
21revenues shall be compared annually to the revenue requirement
22or requirements approved by the Commission on which the rates
23giving rise to those revenues were based to prevent
24undercollections or overcollections. An electric utility shall
25submit an annual revenue balancing reconciliation report to

 

 

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1the Commission reflecting the difference between the actual
2delivery service revenue and multi-year rate case revenue
3requirement for the applicable reconciliation and identifying
4the charges or credits to be applied thereafter. Such
5reconciliation and calculation of associated charges or
6credits shall be conducted on a customer class basis. The
7annual revenue balancing reconciliation report shall be filed
8with the Commission no later than March 20 of the year
9following a reconciliation period. The Commission may initiate
10a review of the revenue balancing reconciliation report each
11year to determine if any subsequent adjustment is necessary to
12align actual delivery service revenue and rate case revenue
13requirement. If the Commission elects to initiate such review,
14the Commission shall, after notice and hearing, enter an order
15approving, or approving as modified, such revenue balancing
16reconciliation report no later than 120 days after the utility
17files its report with the Commission. If the Commission does
18not initiate such a review, the revenue balancing
19reconciliation report and the identified charges or credits
20shall be deemed accepted and approved 120 days after the
21utility files the report and shall not be subject to review in
22any other proceeding. Any balancing adjustment shall take
23effect during the following January monthly billing period.
24    (d) Each electric utility shall file a tariff in
25compliance with the provisions of this Section within 120 days
26after the effective date of this amendatory Act of the 102nd

 

 

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1General Assembly. The Commission shall approve the tariff if
2it finds that it is consistent with the provisions of the
3Section. If the Commission does not so find, it shall approve
4the tariff with modification to conform it to the requirements
5of this Section or otherwise reject the tariff and explain how
6the utility can modify the tariff and refile to comply with the
7requirements of this Section.
 
8    (220 ILCS 5/16-105.10 new)
9    Sec. 16-105.10. Independent baseline assessment.
10    (a) Prior to the filing of the initial Multi-Year
11Integrated Grid Plan described in Section 16-105.17 of this
12Act, the General Assembly finds that an independent audit of
13the current state of the grid, and of the expenditures made
14since 2012, will need to be made.
15    Specifically, the General Assembly finds:
16        (1) Pursuant to the Energy Infrastructure
17    Modernization Act and subsequent clarifying legislation,
18    electric utilities in this State that serve over 300,000
19    retail customers have made substantial investments in the
20    grid and advanced metering infrastructure.
21        (2) Before a Multi-Year Integrated Grid Plan is filed
22    under Section 16-105.17, it is necessary to understand the
23    benefits of these investments to the grid and to customers
24    and to evaluate the current condition of the distribution
25    grid.

 

 

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1        (3) It is also necessary for electric utilities, the
2    Commission, and stakeholders to have an independently
3    verified set of data to establish the baseline for future
4    distribution grid spending.
5        (4) The Commission has authority to order and
6    implement the requirements of this Section under Section
7    8-102 of this Act.
8    (b) Terms used in this Section have the meanings given to
9those terms in Sections 16-102, 16-107.6, and 16-108 of this
10Act.
11    (c) Within 30 days after the effective date of this
12amendatory Act of the 102nd General Assembly, the Commission
13shall issue an order initiating an audit of each electric
14utility serving over 300,000 retail customers in the State,
15which shall examine the following:
16        (1) An assessment of the distribution grid, as
17    described in paragraph (2) of subsection (a) of this
18    Section. The Commission shall have the authority to
19    require additional items which it deems necessary.
20        (2) An analysis of the utility's capital projects
21    placed into service in the preceding 9 years, including,
22    but not limited to, assessing the value of deploying
23    advanced metering infrastructure to modernize and optimize
24    the grid and deliver value to customers.
25        (3) An analysis of the utility's initiatives to
26    optimize the reliability and resiliency of the grid, other

 

 

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1    than through capital spending.
2        (4) Creation of a data baseline to inform the
3    beginning of the multi-year integrated grid planning
4    process described in Section 16-105.17 of this Act.
5        (5) Identification of any deficiencies in data which
6    may impact the planning process.
7    (d) It is contemplated that the auditor will utilize
8materials filed with the Commission by the utilities with
9respect to their expenditures in the preceding 9 years;
10however, the auditor may also, with Commission approval,
11assess other information deemed necessary to make its report.
12    (e) The results of the audit described in this Section
13shall be reflected in a report delivered to the Commission,
14describing the information specified in this Section. Such
15report is to be delivered no later than 180 days after the
16Commission enters its order pursuant to subsection (c) of this
17Section. It is understood that any public report may not
18contain items that are confidential or proprietary.
19    (f) The costs of an electric utility's audit described in
20this Section shall not exceed $500,000 and shall be paid for by
21the electric utility that is the subject of the audit. Such
22costs shall be a recoverable expense.
23    (g) The Commission shall have the authority to retain the
24services of an auditor to assist with the distribution
25planning process, as well as in docketed proceedings. Such
26expenses for these activities shall also be borne by the

 

 

10200HB3666sam001- 721 -LRB102 13525 AMC 28481 a

1Commission.
 
2    (220 ILCS 5/16-105.17 new)
3    Sec. 16-105.17. Multi-Year Integrated Grid Plan.
4    (a) The General Assembly finds that ensuring alignment of
5regulated utility operations, expenditures, and investments
6with public benefit goals, including safety, reliability,
7resiliency, affordability, equity, emissions reductions, and
8expansion of clean distributed energy resources, is critical
9to maximizing the benefits of the interconnected utility grid
10and cost-effective utility expenditures on the grid. It is the
11policy of the State to promote inclusive, comprehensive,
12transparent, cost-effective distribution system planning and
13disclosures processes that minimize long-term costs for
14Illinois customers and support the achievement of State
15renewable energy development and other clean energy, public
16health, and environmental policy goals. Utility distribution
17system expenditures, programs, investments, and policies must
18be evaluated in coordination with these goals. In particular,
19the General Assembly finds that:
20        (1) Investment in infrastructure to support and enable
21    existing and new distributed energy resources creates
22    significant economic development, environmental, and
23    public health benefits in the State.
24        (2) Illinois' electricity distribution system must
25    cost-effectively integrate renewable energy resources,

 

 

10200HB3666sam001- 722 -LRB102 13525 AMC 28481 a

1    including utility-scale renewable energy resources,
2    community renewable generation, and distributed renewable
3    energy resources, support beneficial electrification,
4    including electric vehicle use and adoption, promote
5    opportunities for third-party investment in
6    nontraditional, grid-related technologies and resources
7    such as batteries, solar photovoltaic panels, and smart
8    thermostats, reduce energy usage generally and especially
9    during times of greatest reliance on fossil fuels, and
10    enhance customer engagement opportunities.
11        (3) Inclusive distribution system planning is an
12    essential tool for the Commission, public utilities, and
13    stakeholders to effectively coordinate environmental,
14    consumer, reliability, and equity goals at fair and
15    reasonable costs, and for ensuring transparent utility
16    accountability for meeting those goals.
17        (4) Any planning process should advance Illinois
18    energy policy goals while ensuring utility investments are
19    cost-effective. Such a process should maximize the sharing
20    of information, minimize overlap with existing filing
21    requirements to ensure robust stakeholder participation,
22    and recognize the responsibility of the utility to manage
23    the grid in a safe, reliable manner.
24        (5) The General Assembly is concerned that, in the
25    absence of a transparent, meaningful distribution system
26    planning process, utility investments may not always serve

 

 

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1    customers' best interests, appropriately promote the
2    expansion of clean distributed energy resources, and
3    advance equity and environmental justice.
4        (6) The General Assembly is also encouraged by the
5    opportunities presented by nontraditional solutions to
6    utility, customer, and grid needs that may be more
7    efficient and cost-effective, and less environmentally
8    harmful than traditional solutions. Nontraditional
9    solutions include distributed energy resources owned or
10    implemented by customers and independent third parties,
11    controllable load, beneficial electrification, or rate
12    design that encourages efficient energy use.
13        (7) The General Assembly finds that Illinois
14    utilities' current processes for planning their
15    distribution system should be made more accessible and
16    transparent to individuals and communities, and that more
17    inclusive and accessible distribution system planning
18    processes would be in the interests of all Illinois
19    residents.
20        (8) The General Assembly finds it would be beneficial
21    to require utilities to demonstrate how their spending
22    promotes identified State clean energy goals, such as
23    integrating renewable energy, empowering customers to make
24    informed choices, supporting electric vehicles, beneficial
25    electrification, and energy storage, achieving equity
26    goals, enhancing resilience, and maintaining reliability.

 

 

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1    The General Assembly therefore directs the utilities to
2implement distribution system planning as described in this
3Section in order to accelerate progress on Illinois clean
4energy and environmental goals and hold electric utilities
5publicly accountable for their performance.
6    (b) Unless otherwise specified, the terms used in this
7Section shall have the same meanings as defined in Sections
816-102 and 16-107.6. As used in this Section:
9    "Demand response" means measures that decrease peak
10electricity demand or shift demand from peak to off-peak
11periods.
12    "Distributed energy resources" or "DER" means a wide range
13of technologies that are connected to the grid, including
14those that are located on the customer side of the customer's
15electric meter and can provide value to the distribution
16system, including, but not limited to, distributed generation,
17energy storage, electric vehicles, and demand response
18technologies.
19    "Environmental justice communities" means the definition
20of that term based on existing methodologies and findings,
21used and as may be updated by the Illinois Power Agency and its
22Program Administrator in the Illinois Solar for All Program.
23    (c) This Section applies to electric utilities serving
24more than 500,000 retail customers in the State.
25    (d) The Multi-Year Integrated Grid Plan ("the Plan") shall
26be designed to:

 

 

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1        (1) ensure coordination of the State's renewable
2    energy goals, climate and environmental goals with the
3    utility's distribution system investments, and programs
4    and policies over a 5-year planning horizon to maximize
5    the benefits of each while ensuring utility expenditures
6    are cost-effective;
7        (2) optimize utilization of electricity grid assets
8    and resources to minimize total system costs;
9        (3) support efforts to bring the benefits of grid
10    modernization and clean energy, including, but not limited
11    to, deployment of distributed energy resources, to all
12    retail customers, and support efforts to bring at least
13    40% of the benefits of those benefits to Equity Investment
14    Eligible Communities. Nothing in this paragraph is meant
15    to require a specific amount of spending in a particular
16    geographic area;
17        (4) enable greater customer engagement, empowerment,
18    and options for energy services;
19        (5) reduce grid congestion, minimize the time and
20    expense associated with interconnection, and increase the
21    capacity of the distribution grid to host increasing
22    levels of distributed energy resources, to facilitate
23    availability and development of distributed energy
24    resources, particularly in locations that enhance consumer
25    and environmental benefits;
26        (6) ensure opportunities for robust public

 

 

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1    participation through open, transparent planning
2    processes.
3        (7) provide for the analysis of the cost-effectiveness
4    of proposed system investments, which takes into account
5    environmental costs and benefits;
6        (8) to the maximum extent practicable, achieve or
7    support the achievement of Illinois environmental goals,
8    including those described in Section 9.10 of the
9    Environmental Protection Act and Section 1-75 of the
10    Illinois Power Agency Act, and emissions reductions
11    required to improve the health, safety, and prosperity of
12    all Illinois residents;
13        (9) support existing Illinois policy goals promoting
14    the long-term growth of energy efficiency, demand
15    response, and investments in renewable energy resources;
16        (10) provide sufficient public information to the
17    Commission, stakeholders, and market participants in order
18    to enable nonemitting customer-owned or third-party
19    distributed energy resources, acting individually or in
20    aggregate, to seamlessly and easily connect to the grid,
21    provide grid benefits, support grid services, and achieve
22    environmental outcomes, without necessarily requiring
23    utility ownership or controlling interest over those
24    resources, and enable those resources to act as
25    alternatives to utility capital investments; and
26        (11) provide delivery services at rates that are

 

 

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1    affordable to all customers, including low-income
2    customers.
3    (e) Plan Development Stakeholder Process.
4        (1) To promote the transparency of utility
5    distributions system planned investments and the planning
6    process for those investments, the Commission shall
7    convene a workshop process, over a period of no less than 5
8    months, for each such utility for the purpose of
9    establishing an open, inclusive, and cooperative forum
10    regarding such investments. The workshops shall be
11    facilitated by an independent, third-party facilitator
12    selected by the Commission. Data and projections provided
13    through the workshop process shall be designed to provide
14    participants with information about the electric utility's
15    (i) historic distribution system investments for at least
16    the 5 years prior to the year in which the workshop is held
17    and (ii) planned investments for the 5-year period
18    following the year in which the workshop is held. The
19    workshop process shall recognize that estimates for later
20    years will be less reliable and indicative of future
21    conduct than estimates for earlier years and that the
22    electric utility is subject to financial and system
23    planning processes. No later than January 1, 2022, the
24    facilitator shall initiate a series of workshops for each
25    electric utility subject to this Section. The series of
26    workshops shall include no fewer than 6 workshops and

 

 

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1    shall conclude no later than June 1, 2022.
2        (2) The workshops shall be designed to achieve the
3    following objectives:
4            (A) review utilities' planned capital investments
5        and supporting data;
6            (B) review how utilities plan to invest in their
7        distribution system in order to meet the system's
8        projected needs;
9            (C) review system and locational data on
10        reliability, resiliency, DER, and service quality
11        provided by the utilities;
12            (D) solicit and consider input from diverse
13        stakeholders, including representatives from
14        environmental justice communities, geographically
15        diverse communities, low-income representatives,
16        consumer representatives, environmental
17        representatives, organized labor representatives,
18        third-party technology providers, and utilities;
19            (E) consider proposals from utilities and
20        stakeholders on programs and policies necessary to
21        achieve the objectives in subsection (d) of this
22        Section;
23            (F) consider proposals applicable to each
24        component of the utilities' Multi-Year Integrated Grid
25        Plan filings under paragraph (2) of subsection (f) of
26        this Section;

 

 

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1            (G) educate and equip interested stakeholders so
2        that they can effectively and efficiently provide
3        feedback and input to the electric utility; and
4            (H) review planned capital investment to ensure
5        that delivery services are provided at rates that are
6        affordable to all customers, including low-income
7        customers.
8        (3) To the extent any of the information in
9    subparagraphs (A) through (H) of paragraph (2) of this
10    subsection is designated as confidential and proprietary
11    under the Commission's rules, the proponent of the
12    designation shall have the burden of making the requisite
13    showing under the Commission's rules. For data that is
14    determined to be confidential or that includes personally
15    identifiable information, the Commission may develop
16    procedures and processes to enable data sharing with
17    parties and stakeholders while ensuring the
18    confidentiality of the information.
19        (4) Workshops should be organized and facilitated in a
20    manner that encourages representation from diverse
21    stakeholders, ensuring equitable opportunities for
22    participation, without requiring formal intervention or
23    representation by an attorney. Workshops should be held
24    during both day and evening hours, in a variety of
25    locations within each electric utility's service
26    territory, and should allow remote participation.

 

 

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1        (5) It is a goal of the State that this workshop
2    process will provide a forum for interested stakeholders
3    to effectively and efficiently provide feedback and input
4    to the electric utility. It is also a goal of the State
5    that stakeholder participation in this process will
6    prepare stakeholders to more capably participate in
7    Multi-Year Rate Plan proceedings conducted pursuant to
8    Section 16-108.18 of this Act, if they so elect. As part of
9    the workshop process, the electric utility shall submit to
10    the Commission the electric utility's capital investments
11    proposal, and supporting data described in subparagraphs
12    (A) through (C) of paragraph (2) of this subsection (e)
13    before the start of workshops to allow interested
14    stakeholders to reasonably review data before attending
15    workshops. The Commission shall make public the utility
16    capital investments proposal by posting it on the
17    Commission's website and set the location and time of any
18    workshop to be held as part of the workshop process, and
19    establish a data request process, consistent with the
20    Commission's rules, that affords workshop participants
21    opportunities to submit data requests to the utility, and
22    receive responses in accordance with the utility's
23    obligations under the law, prior to the workshop,
24    regarding the information described in this paragraph (5).
25    Upon the written request of a workshop participant, the
26    utility shall also present at a given workshop at least

 

 

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1    one appropriate company representative who can address the
2    specific written questions or written categories of
3    questions identified in advance by the workshop
4    participant regarding issues related to the utility's
5    Multi-Year Integrated Grid Plan. To facilitate public
6    feedback, the administrator facilitating the workshops
7    shall, throughout the workshop process, develop questions
8    for stakeholder input on topics being considered. This may
9    include, but is not limited to: design of the workshop
10    process, locational data and information provided by
11    utilities, alignment of plans, programs, investments and
12    objectives, and other topics as deemed appropriate by the
13    Commission facilitation staff. Stakeholder feedback shall
14    not be limited to these questions. The information
15    provided as part of the workshop process pursuant to this
16    subsection (e) is intended to be informational and to
17    provide a preliminary view of costs and investments, which
18    may change. Accordingly, the information provided pursuant
19    to this subsection (e) shall not be binding on the utility
20    and shall not be the sole basis for a finding in any
21    Commission proceeding of imprudence, unreasonableness, or
22    lack of use or usefulness of any individual or aggregate
23    level of utility plant or other investment or expenditure
24    addressed; however, information contained in the plan may
25    be used in a proceeding before the Commission, with weight
26    of such evidence to be determined by the Commission.

 

 

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1        (6) Workshops shall not be considered settlement
2    negotiations, compromise negotiations, or offers to
3    compromise for the purposes of Illinois Rule of Evidence
4    408. All materials shared as a part of the workshop
5    process, and that are not determined to be confidential as
6    described in paragraph (3) of this subsection (e), shall
7    be made publicly available on a website made available by
8    the Commission.
9        (7) On conclusion of the workshops, the Commission
10    shall open a comment period that allows interested and
11    diverse stakeholders to submit comments and
12    recommendations regarding the utility's Multi-Year
13    Integrated Grid Plan filing. Based on the workshop process
14    and stakeholder comments and recommendations offered
15    verbally or in writing during the workshops and in writing
16    during the comment period following the workshops, the
17    independent third-party facilitator shall prepare a
18    report, to be submitted to the Commission no later than
19    July 1, 2022, describing the stakeholders, discussions,
20    proposals, and areas of consensus and disagreement from
21    the workshop process, and making recommendations to the
22    Commission regarding the utility's Multi-Year Integrated
23    Grid Plan. Interested stakeholders shall have an
24    opportunity to provide comment on the independent
25    third-party facilitator report.
26        (8) Based on discussions in the workshops, the

 

 

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1    independent third-party facilitator report, and
2    stakeholder comments and recommendations made during and
3    following the workshop process, the Commission shall issue
4    initiating orders no later than August 1, 2022, requiring
5    the electric utilities subject to this Section to file the
6    first Multi-Year Integrated Grid Plan no later than
7    January 20, 2023. The initiating orders shall specify the
8    requirements applicable to the utilities' Multi-Year
9    Integrated Grid Plans, which shall supplement and not
10    replace those requirements described in subsection (f) of
11    this Section.
12    (f) Multi-Year Integrated Grid Plan.
13        (1) Pursuant to this subsection (f) and the initiating
14    orders of the Commission, each electric utility subject to
15    this Section shall, no later than January 20, 2023, submit
16    its first Multi-Year Integrated Grid Plan. No later than
17    January 20, 2026, and every 4 years thereafter, the
18    utility shall submit its subsequent Plan. Each Plan shall:
19            (A) incorporate requirements established by the
20        Commission in its initiating order; and
21            (B) propose distribution system investment
22        programs, policies, and plans designed to optimize
23        achievement of the objectives set forth in subsection
24        (d) of this Section and achieve the metrics approved
25        by the Commission pursuant to Section 16-108.18 of
26        this Act.

 

 

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1        To the extent practicable and reasonable, all
2    programs, policies, and initiatives proposed by the
3    utility in its plan should be informed by stakeholder
4    input received during the workshop process pursuant to
5    subsection (e) of this Section. Where specific stakeholder
6    input has not been incorporated in proposed programs,
7    policies, and plans, the electric utility shall provide an
8    explanation as to why that input was not incorporated.
9        (2) In order to ensure electric utilities' ability to
10    meet the goals and objectives set forth in this Section,
11    the Multi-Year Integrated Grid Plans must include, at
12    minimum, the following information:
13            (A) A description of the utility's distribution
14        system planning process, including:
15                (i) the overview of the process, including
16            frequency and duration of the process, roles, and
17            responsibilities of utility personnel and
18            departments involved;
19                (ii) a summary of the meetings with
20            stakeholders conducted prior to filing of the plan
21            with the Commission.
22                (iii) the description of any coordination of
23            the processes with any other planning process
24            internal or external to the utility, including
25            those required by a regional transmission
26            operator.

 

 

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1            (B) A detailed description of the current
2        operating conditions for the distribution system
3        separately presented for each of the utility's
4        operating areas, where possible, including a detailed
5        description, with supporting data, of system
6        conditions, including baseline data regarding the
7        utility's distribution system from the utility's
8        annual report to the Commission, total distribution
9        system substation capacity in kVa, total miles of
10        primary overhead distribution wire, and total miles of
11        primary underground distribution cable, distributed
12        energy resource deployment by type, size, customer
13        class, and geographic dispersion as to those DERs that
14        have completed the interconnection process, the most
15        current distribution line loss study, current and
16        expected System Average Interruption Frequency Index
17        and Customer Average Interruption Duration Index data
18        for the system, identification of the system model
19        software currently used and planned software
20        deployments, and other data needs as requested by the
21        Commission or as determined through Commission rules.
22        The description shall also include the utility's most
23        recent system load and peak demand forecast for at
24        least the next 5 years, and up to 10 years if
25        available, a discussion of how the forecast was
26        prepared and how distributed energy resources and

 

 

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1        energy efficiency were factored into the forecast, and
2        identification of the forecasting software currently
3        used and planned software deployments.
4            (C) Financial Data.
5                (i) For each of the preceding 5 years, the
6            utility's distribution system investments by the
7            investment categories tracked by the utility,
8            including, but not limited to, new business,
9            facility relocation, capacity expansion, system
10            performance, preventive maintenance, corrective
11            maintenance, the total amount of investments
12            associated with the integration of DERs, the total
13            amount of charges to DER developers and retail
14            customers for interconnection of DERs to the
15            distribution system, and a list of each major
16            investment category the utility used to maintain
17            its routine standing operational activities and
18            the associated plant in service amount for each
19            category in which the plant in service amount is
20            at least $2,000,000;
21                (ii) For each of the preceding 5 years, data
22            on and a discussion of the utility's distribution
23            system operation and maintenance expenses;
24                (iii) A 5-year long-range forecast of
25            distribution system capital investments and
26            operational and maintenance expenses, including a

 

 

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1            discussion of any projections for expenses for the
2            categories listed in subparagraph (i) of this item
3            (C).
4            (D) System data on DERs on the utility's
5        distribution system, including the total number and
6        nameplate capacity of DERs that completed
7        interconnection in the prior year, current DER
8        deployment by type, size, and geographic dispersion,
9        to the extent that granular geographic information
10        does not disclose personally identifiable information,
11        and other data as requested by the Commission or
12        determined by Commission rules.
13            (E) Hosting Capacity and Interconnection
14        Requirements.
15                (i) The utility shall make available on its
16            website the hosting capacity analysis results that
17            shall include mapping and GIS capability, as well
18            as any other requirements requested by the
19            Commission or determined through Commission rules.
20            The plan shall identify where the hosting capacity
21            analysis results shall be made publicly available.
22            This shall also include an assessment of the
23            impact of utility investments over the next 5
24            years on hosting capacity and a narrative
25            discussion of how the hosting capacity analysis
26            advances customer-sited distributed energy

 

 

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1            resources, including electric vehicles, energy
2            storage systems, and photovoltaic resources, and
3            how the identification of interconnection points
4            on the distribution system will support the
5            continued development of distributed energy
6            resources.
7                (ii) Discussion of the utility's
8            interconnection requirements and how they comply
9            with the Commission's applicable regulations.
10            (F) Identification and discussion of the scenarios
11        considered in the development of the utility's
12        Multi-Year Integrated Grid Plan, including DER
13        scenarios, and discussion of base-case and alternative
14        scenarios, how the scenarios were developed and
15        selected, and how the scenarios include a reasonable
16        mix of DERs scenarios, types, and geographic
17        dispersion. Scenarios shall at least consider the
18        5-year forecast horizon of the Multi-Year Integrated
19        Grid Plan, but may also consider longer-term scenarios
20        where data is available. The plan shall also include
21        requirements requested by the Commission or determined
22        through Commission rules.
23            (G) An evaluation of the short-term and long-run
24        benefits and costs of distributed energy resources
25        located on the distribution system, including, but not
26        limited to, the locational, temporal, and

 

 

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1        performance-based benefits and costs of distributed
2        energy resources. The utility shall use the results of
3        this evaluation to inform its analysis of Solution
4        Sourcing Opportunities, including nonwires
5        alternatives, under subparagraph (K) of paragraph (2)
6        subsection (f) of this Section. The Commission may use
7        the data produced through this evaluation to, among
8        other use-cases, inform the Commission's investigation
9        and establishment of tariffs and compensation for
10        distributed energy resources interconnecting to the
11        utility's distribution system, including rebates
12        provided by the electric utility pursuant to Section
13        16-107.6 of this Act.
14            (H) Long-term Distribution System Investment Plan.
15                (i) The utility's planned distribution capital
16            investments for the period covered by the planning
17            process required by this Section, by the
18            investment categories used by the utility, and
19            with discussion of any individual planned projects
20            with a planned total investment gross amount of
21            $3,000,000 or more and of the alternatives
22            considered by the utility to such individual
23            projects including any non-traditional
24            alternatives and DER alternatives, and supporting
25            data. This shall provide sufficiently detailed
26            explanations of how the planned investments shall

 

 

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1            support the goals in subsection (d) of this
2            Section.
3                (ii) Discussion of how the utility's capital
4            investments plan is consistent with Commission
5            orders regarding the procurement of renewable
6            resources as discussed in Section 16-111.5 of this
7            Act, energy efficiency plans as discussed in
8            Section 8-103B, distributed generation rebates as
9            discussed in Section 16-107.6, and any other
10            Commission order affecting the goals described in
11            subsection (d) of this Section.
12                (iii) A plan for achieving the applicable
13            metrics that were approved by the Commission for
14            the utility pursuant to subsection (e) of Section
15            16-108.18 of this Act.
16                (iv) A narrative discussion of the utility's
17            vision for the distribution system over the next 5
18            years.
19                (v) Any additional information requested by
20            the Commission or determined through Commission
21            rules.
22            (I) A detailed description of historic
23        distribution system operations and maintenance
24        expenditures for the preceding 5 years and of planned
25        or projected operations and maintenance expenditures
26        for the period covered by the planning process

 

 

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1        required by this Section, as well as the data,
2        reasoning and explanation supporting planned or
3        projected expenditures. Any additional information
4        requested by the Commission or determined through
5        Commission rules.
6            (J) A detailed plan for achieving the applicable
7        metrics that were approved by the Commission for the
8        utility pursuant to subsection (e) of Section
9        16-108.18 of this Act, including, but not limited to,
10        the following:
11                (i) A description of, exclusive of low-income
12            rate relief programs and other income-qualified
13            programs, how the utility is supporting efforts to
14            bring 40% of benefits from programs, policies, and
15            initiatives proposed in their Multi-Year
16            Integrated Grid Plan to ratepayers in low-income
17            and environmental justice communities. This shall
18            also include any information requested by the
19            Commission or determined through Commission rules.
20            Nothing in this subparagraph is meant to require a
21            specific amount of spending in a particular
22            geographic area.
23                (ii) A detailed analysis of current and
24            projected flexible resources, including resource
25            type, size (in MW and MWh), location and
26            environmental impact, as well as anticipated needs

 

 

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1            that can be met using flexible resources, to meet
2            the goals described in subsection (d) of this
3            Section, to meet the applicable metrics that were
4            approved by the Commission for the utility
5            pursuant to subsection (e) of Section 16-108.18 of
6            this Act, and any other Commission order affecting
7            the goals described in subsection (d) of this
8            Section.
9                (iii) Any additional information requested by
10            the Commission or determined through Commission
11            rules.
12            (K) Identification of potential cost-effective
13        solutions from nontraditional and third-party owned
14        investments that could meet anticipated grid needs,
15        including, but not limited to, distributed energy
16        resources procurements, tariffs or contracts,
17        programmatic solutions, rate design options,
18        technologies or programs that facilitate load
19        flexibility, nonwires alternatives, and other
20        solutions that are intended to meet the objectives
21        described at subsection (d). It is the policy of this
22        State that cost-effective third-party or
23        customer-owned distributed energy resources create
24        robust competition and customer choice and shall be
25        considered as appropriate. The Commission shall
26        establish rules determining data or methods for

 

 

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1        Solution Sourcing Opportunities.
2            (L) A detailed description of the utility's
3        interoperability plan, which must describe the manner
4        in which the electric utility's current and planned
5        distribution system investments will work together and
6        exchange information and data, the extent to which the
7        utility is implementing open standards and interfaces
8        with third-party distributed energy resource owners
9        and aggregators, and the utility's plan for
10        interoperability testing and certification.
11        (3) To the extent any information in utilities'
12    Multi-Year Integrated Grid Plans is designated as
13    confidential and proprietary under the Commission's rules,
14    the proponent of the designation shall have the burden of
15    making the requisite showing under the Commission's rules.
16    For data that is determined to be confidential or that
17    includes personally identifiable information, the
18    Commission may develop procedures and processes to enable
19    data sharing with parties and stakeholders while ensuring
20    the confidentiality of the information. All confidential
21    information exchanged, submitted, or shared by a utility
22    pursuant to this Section shall be protected from
23    intentional and accidental dissemination. The Commission
24    shall have authority to supervise, protect, and restrict
25    access to all confidential, commercially sensitive, or
26    system security related information and data, and shall be

 

 

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1    authorized to take all necessary steps to protect that
2    information from unauthorized disclosure. This paragraph
3    shall not be interpreted to require a utility to make
4    publicly available any information or data that could
5    compromise the physical or cyber security of a utility's
6    distribution system. Any party that accidentally
7    disseminates confidential information obtained pursuant to
8    a proceeding initiated in accordance with this Section, or
9    is the victim of a cyber-security breach, must notify the
10    affected utility, the Illinois Attorney General, and the
11    Commission staff with 24 hours of knowledge of such
12    dissemination or breach. Any party that fails to provide
13    required notification of such a breach shall be subject to
14    remedies available to the Commission and the Illinois
15    Attorney General.
16        (4) It is the policy of this State that holistic
17    consideration of all related investments, planning
18    processes, tariffs, rate design options, programs, and
19    other utility policies and plans shall be required. To
20    that end, the Commission shall consider, comprehensively,
21    the impact of all related plans, tariffs, programs, and
22    policies on the Plan and on each other, including:
23            (A) time-of-use pricing program pursuant to
24        Section 16-107.7 of this Act, hourly pricing program
25        pursuant to Section 16-107 of this Act, and any other
26        time-variant or dynamic pricing program;

 

 

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1            (B) distributed generation rebate pursuant to
2        Section 16-107.6 of this Act;
3            (C) net electricity metering, pursuant to Section
4        16-107.5 of this Act;
5            (D) energy efficiency programs pursuant to Section
6        8-103B of this Act;
7            (E) beneficial electrification programs pursuant
8        to Section 16-107.8 of this Act;
9            (F) Equitable Energy Upgrade Program pursuant to
10        Section 16-111.10 of this Act;
11            (G) renewable energy programs and procurements set
12        forth in the Illinois Power Agency Act, including, but
13        not limited to, those set forth in the long-term
14        renewable resources procurement plan developed
15        pursuant to Section 1-20 of that Act; and
16            (H) other plans, programs, and policies that are
17        relevant to distribution grid investments, costs,
18        planning, and other categories as requested by the
19        Commission.
20        The Plan shall comprehensively detail the relationship
21    between these plans, tariffs, and programs and to the
22    electric utility's achievement of the objectives in
23    subsection (d). The Plan shall be designed to coordinate
24    each of these plans, programs, and tariffs with the
25    electric utility's long-term distribution system
26    investment planning in order to maximize the benefits of

 

 

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1    each.
2        (5) The initiating order for the initial Multi-Year
3    Integrated Grid Plan, as well as each electric utility's
4    subsequent Integrated Grid Plans under subsection (g),
5    shall begin a contested proceeding as described in
6    subsection (d) of Section 10-101.1 of this Act.
7            (A) In evaluating a utility's Plan, the Commission
8        shall consider, at minimum, whether the Plan:
9                (1) meets the objectives of this Section;
10                (2) includes the components in paragraph (2)
11            of subsection (f) of this Section;
12                (3) considers and incorporates, where
13            practicable, input from interested stakeholders,
14            including parties and people who offer public
15            comment without legal representation;
16                (4) considers nontraditional, including
17            third-party owned, investment alternatives that
18            can meet grid needs and provide additional
19            benefits (including consumer, economic, and
20            environmental benefits) beyond comparable,
21            traditional utility-planned capital investments;
22                (5) equitably benefits environmental justice
23            communities; and
24                (6) maximizes consumer, environmental,
25            economic, and community benefits over a 10-year
26            horizon.

 

 

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1            (B) The Commission, after notice and hearing,
2        shall modify each electric utility's Plan as necessary
3        to comply with the objectives of this Section. The
4        Commission may approve, or modify and approve, a Plan
5        only if it finds that the Plan is reasonable, complies
6        with the objectives and requirements of this Section,
7        and reasonably incorporates input from parties. The
8        Commission may reject each electric utility's Plan if
9        it finds that the Plan does not comply with the
10        objectives and requirements of this Section. If the
11        Commission enters an order rejecting a Plan, the
12        utility must refile a Plan within 3 months after that
13        order, and until the Commission approves a Plan, the
14        utility's existing Plan will remain in effect.
15            (C) For the initial Integrated Grid Plan filings,
16        the Commission shall enter an order approving,
17        modifying, or rejecting the Plan no later than
18        December 15, 2023. For subsequent Integrated Grid Plan
19        filings, the Commission shall enter an order
20        approving, modifying, or rejecting the Plan no later
21        than December 15 of the year in which it was filed.
22            (D) Each electric utility shall file its proposed
23        Initial Multi-Year Integrated Grid Plan no later than
24        January 20, 2023. Prior to that date and following the
25        initiating order, the Commission shall initiate a case
26        management conference and shall take any appropriate

 

 

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1        steps to begin meaningful consideration of issues,
2        including enabling interested parties to begin
3        conducting discovery.
4        (6) As part of its order approving a utility's
5    Multi-Year Integrated Grid Plan, including any
6    modifications required, the Commission may create a
7    subsequent implementation plan docket, or multiple
8    implementation plan dockets, if the Commission determines
9    that multiple dockets would be preferable, to consider a
10    utility's detailed plan or plans, as directed in the
11    Commission's order.
12    (g) No later than January 20, 2026 and every 4 years
13thereafter, each electric utility subject to this Section
14shall file a new Multi-Year Integrated Grid Plan for the
15subsequent 4 delivery years after the completion of the
16then-effective Plan. Each Plan shall meet the requirements
17described in subsection (f) of this Section, and shall be
18preceded by a workshop process which meets the same
19requirements described in subsection (e). If appropriate, the
20Commission may require additional implementation dockets to
21follow Subsequent Multi-Year Integrated Grid Plan filings.
22    (h) During the period leading to approval of the first
23Multi-Year Integrated Grid Plan, each electric utility will
24necessarily continue to invest in its distribution grid. Those
25investments will be subject to a determination of prudence and
26reasonableness consistent with Commission practice and law.

 

 

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1Any failure of such investments to conform to the Multi-Year
2Integrated Grid Plan ultimately approved shall not imply
3imprudence or unreasonableness.
4    (i) The Commission shall adopt rules to carry out the
5provisions of this Section under the emergency rulemaking
6provisions set forth in Section 5-45 of the Illinois
7Administrative Procedure Act, and such emergency rules shall
8be effective no later than 90 days after the effective date of
9this amendatory Act of the 102nd General Assembly.
 
10    (220 ILCS 5/16-107.5)
11    Sec. 16-107.5. Net electricity metering.
12    (a) The General Assembly Legislature finds and declares
13that a program to provide net electricity metering, as defined
14in this Section, for eligible customers can encourage private
15investment in renewable energy resources, stimulate economic
16growth, enhance the continued diversification of Illinois'
17energy resource mix, and protect the Illinois environment.
18Further, to achieve the goals of this Act that robust options
19for customer-site distributed generation continue to thrive in
20Illinois, the General Assembly finds that a predictable
21transition must be ensured for customers between full net
22metering at the retail electricity rate to the distribution
23generation rebate described in Section 16-107.6.
24    (b) As used in this Section, (i) "community renewable
25generation project" shall have the meaning set forth in

 

 

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1Section 1-10 of the Illinois Power Agency Act; (ii) "eligible
2customer" means a retail customer that owns, hosts, or
3operates, including any third-party owned systems, a solar,
4wind, or other eligible renewable electrical generating
5facility with a rated capacity of not more than 2,000
6kilowatts that is located on the customer's premises or
7customer's side of the billing meter and is intended primarily
8to offset the customer's own current or future electrical
9requirements; (iii) "electricity provider" means an electric
10utility or alternative retail electric supplier; (iv)
11"eligible renewable electrical generating facility" means a
12generator, which may include the co-location of an energy
13storage system, that is interconnected under rules adopted by
14the Commission and is powered by solar electric energy, wind,
15dedicated crops grown for electricity generation, agricultural
16residues, untreated and unadulterated wood waste, landscape
17trimmings, livestock manure, anaerobic digestion of livestock
18or food processing waste, fuel cells or microturbines powered
19by renewable fuels, or hydroelectric energy; (v) "net
20electricity metering" (or "net metering") means the
21measurement, during the billing period applicable to an
22eligible customer, of the net amount of electricity supplied
23by an electricity provider to the customer customer's premises
24or provided to the electricity provider by the customer or
25subscriber; (vi) "subscriber" shall have the meaning as set
26forth in Section 1-10 of the Illinois Power Agency Act; and

 

 

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1(vii) "subscription" shall have the meaning set forth in
2Section 1-10 of the Illinois Power Agency Act; (viii) "energy
3storage system" means commercially available technology that
4is capable of absorbing energy and storing it for a period of
5time for use at a later time, including, but not limited to,
6electrochemical, thermal, and electromechanical technologies,
7and may be interconnected behind the customer's meter or
8interconnected behind its own meter; and (ix) "future
9electrical requirements" means modeled electrical requirements
10upon occupation of a new or vacant property, and other
11reasonable expectations of future electrical use, as well as,
12for occupied properties, a reasonable approximation of the
13annual load of 2 electric vehicles and, for non-electric
14heating customers, a reasonable approximation of the
15incremental electric load associated with fuel switching. The
16approximations shall be applied to the appropriate net
17metering tariff and do not need to be unique to each individual
18eligible customer. The utility shall submit these
19approximations to the Commission for review, modification, and
20approval.
21    (c) A net metering facility shall be equipped with
22metering equipment that can measure the flow of electricity in
23both directions at the same rate.
24        (1) For eligible customers whose electric service has
25    not been declared competitive pursuant to Section 16-113
26    of this Act as of July 1, 2011 and whose electric delivery

 

 

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1    service is provided and measured on a kilowatt-hour basis
2    and electric supply service is not provided based on
3    hourly pricing, this shall typically be accomplished
4    through use of a single, bi-directional meter. If the
5    eligible customer's existing electric revenue meter does
6    not meet this requirement, the electricity provider shall
7    arrange for the local electric utility or a meter service
8    provider to install and maintain a new revenue meter at
9    the electricity provider's expense, which may be the smart
10    meter described by subsection (b) of Section 16-108.5 of
11    this Act.
12        (2) For eligible customers whose electric service has
13    not been declared competitive pursuant to Section 16-113
14    of this Act as of July 1, 2011 and whose electric delivery
15    service is provided and measured on a kilowatt demand
16    basis and electric supply service is not provided based on
17    hourly pricing, this shall typically be accomplished
18    through use of a dual channel meter capable of measuring
19    the flow of electricity both into and out of the
20    customer's facility at the same rate and ratio. If such
21    customer's existing electric revenue meter does not meet
22    this requirement, then the electricity provider shall
23    arrange for the local electric utility or a meter service
24    provider to install and maintain a new revenue meter at
25    the electricity provider's expense, which may be the smart
26    meter described by subsection (b) of Section 16-108.5 of

 

 

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1    this Act.
2        (3) For all other eligible customers, until such time
3    as the local electric utility installs a smart meter, as
4    described by subsection (b) of Section 16-108.5 of this
5    Act, the electricity provider may arrange for the local
6    electric utility or a meter service provider to install
7    and maintain metering equipment capable of measuring the
8    flow of electricity both into and out of the customer's
9    facility at the same rate and ratio, typically through the
10    use of a dual channel meter. If the eligible customer's
11    existing electric revenue meter does not meet this
12    requirement, then the costs of installing such equipment
13    shall be paid for by the customer.
14    (d) An electricity provider shall measure and charge or
15credit for the net electricity supplied to eligible customers
16or provided by eligible customers whose electric service has
17not been declared competitive pursuant to Section 16-113 of
18this Act as of July 1, 2011 and whose electric delivery service
19is provided and measured on a kilowatt-hour basis and electric
20supply service is not provided based on hourly pricing in the
21following manner:
22        (1) If the amount of electricity used by the customer
23    during the billing period exceeds the amount of
24    electricity produced by the customer, the electricity
25    provider shall charge the customer for the net electricity
26    supplied to and used by the customer as provided in

 

 

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1    subsection (e-5) of this Section.
2        (2) If the amount of electricity produced by a
3    customer during the billing period exceeds the amount of
4    electricity used by the customer during that billing
5    period, the electricity provider supplying that customer
6    shall apply a 1:1 kilowatt-hour credit to a subsequent
7    bill for service to the customer for the net electricity
8    supplied to the electricity provider. The electricity
9    provider shall continue to carry over any excess
10    kilowatt-hour credits earned and apply those credits to
11    subsequent billing periods to offset any
12    customer-generator consumption in those billing periods
13    until all credits are used or until the end of the
14    annualized period.
15        (3) At the end of the year or annualized over the
16    period that service is supplied by means of net metering,
17    or in the event that the retail customer terminates
18    service with the electricity provider prior to the end of
19    the year or the annualized period, any remaining credits
20    in the customer's account shall expire.
21    (d-5) An electricity provider shall measure and charge or
22credit for the net electricity supplied to eligible customers
23or provided by eligible customers whose electric service has
24not been declared competitive pursuant to Section 16-113 of
25this Act as of July 1, 2011 and whose electric delivery service
26is provided and measured on a kilowatt-hour basis and electric

 

 

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1supply service is provided based on hourly pricing or
2time-of-use rates in the following manner:
3        (1) If the amount of electricity used by the customer
4    during any hourly period or time-of-use period exceeds the
5    amount of electricity produced by the customer, the
6    electricity provider shall charge the customer for the net
7    electricity supplied to and used by the customer according
8    to the terms of the contract or tariff to which the same
9    customer would be assigned to or be eligible for if the
10    customer was not a net metering customer.
11        (2) If the amount of electricity produced by a
12    customer during any hourly period or time-of-use period
13    exceeds the amount of electricity used by the customer
14    during that hourly period or time-of-use period, the
15    energy provider shall apply a credit for the net
16    kilowatt-hours produced in such period. The credit shall
17    consist of an energy credit and a delivery service credit.
18    The energy credit shall be valued at the same price per
19    kilowatt-hour as the electric service provider would
20    charge for kilowatt-hour energy sales during that same
21    hourly period or time-of-use period. The delivery credit
22    shall be equal to the net kilowatt-hours produced in such
23    hourly period or time-of-use period times a credit that
24    reflects all kilowatt-hour based charges in the customer's
25    electric service rate, excluding energy charges.
26    (e) An electricity provider shall measure and charge or

 

 

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1credit for the net electricity supplied to eligible customers
2whose electric service has not been declared competitive
3pursuant to Section 16-113 of this Act as of July 1, 2011 and
4whose electric delivery service is provided and measured on a
5kilowatt demand basis and electric supply service is not
6provided based on hourly pricing in the following manner:
7        (1) If the amount of electricity used by the customer
8    during the billing period exceeds the amount of
9    electricity produced by the customer, then the electricity
10    provider shall charge the customer for the net electricity
11    supplied to and used by the customer as provided in
12    subsection (e-5) of this Section. The customer shall
13    remain responsible for all taxes, fees, and utility
14    delivery charges that would otherwise be applicable to the
15    net amount of electricity used by the customer.
16        (2) If the amount of electricity produced by a
17    customer during the billing period exceeds the amount of
18    electricity used by the customer during that billing
19    period, then the electricity provider supplying that
20    customer shall apply a 1:1 kilowatt-hour credit that
21    reflects the kilowatt-hour based charges in the customer's
22    electric service rate to a subsequent bill for service to
23    the customer for the net electricity supplied to the
24    electricity provider. The electricity provider shall
25    continue to carry over any excess kilowatt-hour credits
26    earned and apply those credits to subsequent billing

 

 

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1    periods to offset any customer-generator consumption in
2    those billing periods until all credits are used or until
3    the end of the annualized period.
4        (3) At the end of the year or annualized over the
5    period that service is supplied by means of net metering,
6    or in the event that the retail customer terminates
7    service with the electricity provider prior to the end of
8    the year or the annualized period, any remaining credits
9    in the customer's account shall expire.
10    (e-5) An electricity provider shall provide electric
11service to eligible customers who utilize net metering at
12non-discriminatory rates that are identical, with respect to
13rate structure, retail rate components, and any monthly
14charges, to the rates that the customer would be charged if not
15a net metering customer. An electricity provider shall not
16charge net metering customers any fee or charge or require
17additional equipment, insurance, or any other requirements not
18specifically authorized by interconnection standards
19authorized by the Commission, unless the fee, charge, or other
20requirement would apply to other similarly situated customers
21who are not net metering customers. The customer will remain
22responsible for all taxes, fees, and utility delivery charges
23that would otherwise be applicable to the net amount of
24electricity used by the customer. Subsections (c) through (e)
25of this Section shall not be construed to prevent an
26arms-length agreement between an electricity provider and an

 

 

10200HB3666sam001- 758 -LRB102 13525 AMC 28481 a

1eligible customer that sets forth different prices, terms, and
2conditions for the provision of net metering service,
3including, but not limited to, the provision of the
4appropriate metering equipment for non-residential customers.
5    (f) Notwithstanding the requirements of subsections (c)
6through (e-5) of this Section, an electricity provider must
7require dual-channel metering for customers operating eligible
8renewable electrical generating facilities with a nameplate
9rating up to 2,000 kilowatts and to whom the provisions of
10neither subsection (d), (d-5), nor (e) of this Section apply.
11In such cases, electricity charges and credits shall be
12determined as follows:
13        (1) The electricity provider shall assess and the
14    customer remains responsible for all taxes, fees, and
15    utility delivery charges that would otherwise be
16    applicable to the gross amount of kilowatt-hours supplied
17    to the eligible customer by the electricity provider.
18        (2) Each month that service is supplied by means of
19    dual-channel metering, the electricity provider shall
20    compensate the eligible customer for any excess
21    kilowatt-hour credits at the electricity provider's
22    avoided cost of electricity supply over the monthly period
23    or as otherwise specified by the terms of a power-purchase
24    agreement negotiated between the customer and electricity
25    provider.
26        (3) For all eligible net metering customers taking

 

 

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1    service from an electricity provider under contracts or
2    tariffs employing hourly or time-of-use time of use rates,
3    any monthly consumption of electricity shall be calculated
4    according to the terms of the contract or tariff to which
5    the same customer would be assigned to or be eligible for
6    if the customer was not a net metering customer. When
7    those same customer-generators are net generators during
8    any discrete hourly or time-of-use time of use period, the
9    net kilowatt-hours produced shall be valued at the same
10    price per kilowatt-hour as the electric service provider
11    would charge for retail kilowatt-hour sales during that
12    same time-of-use time of use period.
13    (g) For purposes of federal and State laws providing
14renewable energy credits or greenhouse gas credits, the
15eligible customer shall be treated as owning and having title
16to the renewable energy attributes, renewable energy credits,
17and greenhouse gas emission credits related to any electricity
18produced by the qualified generating unit. The electricity
19provider may not condition participation in a net metering
20program on the signing over of a customer's renewable energy
21credits; provided, however, this subsection (g) shall not be
22construed to prevent an arms-length agreement between an
23electricity provider and an eligible customer that sets forth
24the ownership or title of the credits.
25    (h) Within 120 days after the effective date of this
26amendatory Act of the 95th General Assembly, the Commission

 

 

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1shall establish standards for net metering and, if the
2Commission has not already acted on its own initiative,
3standards for the interconnection of eligible renewable
4generating equipment to the utility system. The
5interconnection standards shall address any procedural
6barriers, delays, and administrative costs associated with the
7interconnection of customer-generation while ensuring the
8safety and reliability of the units and the electric utility
9system. The Commission shall consider the Institute of
10Electrical and Electronics Engineers (IEEE) Standard 1547 and
11the issues of (i) reasonable and fair fees and costs, (ii)
12clear timelines for major milestones in the interconnection
13process, (iii) nondiscriminatory terms of agreement, and (iv)
14any best practices for interconnection of distributed
15generation.
16    (h-5) Within 90 days after the effective date of this
17amendatory Act of the 102nd General Assembly, the Commission
18shall:
19        (1) establish an Interconnection Working Group. The
20    working group shall include representatives from electric
21    utilities, developers of renewable electric generating
22    facilities, other industries that regularly apply for
23    interconnection with the electric utilities,
24    representatives of distributed generation customers, the
25    Commission Staff, and such other stakeholders with a
26    substantial interest in the topics addressed by the

 

 

10200HB3666sam001- 761 -LRB102 13525 AMC 28481 a

1    Interconnection Working Group. The Interconnection Working
2    Group shall address at least the following issues:
3            (A) cost and best available technology for
4        interconnection and metering, including the
5        standardization and publication of standard costs;
6            (B) transparency, accuracy and use of the
7        distribution interconnection queue and hosting
8        capacity maps;
9            (C) distribution system upgrade cost avoidance
10        through use of advanced inverter functions;
11            (D) predictability of the queue management process
12        and enforcement of timelines;
13            (E) benefits and challenges associated with group
14        studies and cost sharing;
15            (F) minimum requirements for application to the
16        interconnection process and throughout the
17        interconnection process to avoid queue clogging
18        behavior;
19            (G) process and customer service for
20        interconnecting customers adopting distributed energy
21        resources, including energy storage;
22            (H) options for metering distributed energy
23        resources, including energy storage;
24            (I) interconnection of new technologies, including
25        smart inverters and energy storage;
26            (J) collect, share, and examine data on Level 1

 

 

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1        interconnection costs, including cost and type of
2        upgrades required for interconnection, and use this
3        data to inform the final standardized cost of Level 1
4        interconnection; and
5            (K) such other technical, policy, and tariff
6        issues related to and affecting interconnection
7        performance and customer service as determined by the
8        Interconnection Working Group.
9        The Commission may create subcommittees of the
10    Interconnection Working Group to focus on specific issues
11    of importance, as appropriate. The Interconnection Working
12    Group shall report to the Commission on recommended
13    improvements to interconnection rules and tariffs and
14    policies as determined by the Interconnection Working
15    Group at least every 6 months. Such reports shall include
16    consensus recommendations of the Interconnection Working
17    Group and, if applicable, additional recommendations for
18    which consensus was not reached. The Commission shall use
19    the report from the Interconnection Working Group to
20    determine whether processes should be commenced to
21    formally codify or implement the recommendations;
22        (2) create or contract for an Ombudsman to resolve
23    interconnection disputes through non-binding arbitration.
24    The Ombudsman may be paid in full or in part through fees
25    levied on the initiators of the dispute; and
26        (3) determine a single standardized cost for Level 1

 

 

10200HB3666sam001- 763 -LRB102 13525 AMC 28481 a

1    interconnections, which shall not exceed $200.
2    (i) All electricity providers shall begin to offer net
3metering no later than April 1, 2008.
4    (j) An electricity provider shall provide net metering to
5eligible customers according to subsections (d), (d-5), and
6(e). Eligible renewable electrical generating facilities for
7which eligible customers registered for net metering before
8January 1, 2025 shall continue to receive net metering
9services according to subsections (d), (d-5), and (e) of this
10Section for the lifetime of the system, regardless of whether
11those retail customers change electricity providers or whether
12the retail customer benefiting from the system changes. On and
13after January 1, 2025, any eligible customer that applies for
14net metering and previously would have qualified under
15subsections (d), (d-5), or (e) shall only be eligible for net
16metering as described in subsection (n). until the load of its
17net metering customers equals 5% of the total peak demand
18supplied by that electricity provider during the previous
19year. After such time as the load of the electricity
20provider's net metering customers equals 5% of the total peak
21demand supplied by that electricity provider during the
22previous year, eligible customers that begin taking net
23metering shall only be eligible for netting of energy.
24    (k) Each electricity provider shall maintain records and
25report annually to the Commission the total number of net
26metering customers served by the provider, as well as the

 

 

10200HB3666sam001- 764 -LRB102 13525 AMC 28481 a

1type, capacity, and energy sources of the generating systems
2used by the net metering customers. Nothing in this Section
3shall limit the ability of an electricity provider to request
4the redaction of information deemed by the Commission to be
5confidential business information.
6    (l)(1) Notwithstanding the definition of "eligible
7customer" in item (ii) of subsection (b) of this Section, each
8electricity provider shall allow net metering as set forth in
9this subsection (l) and for the following projects, provided
10that only electric utilities serving more than 200,000
11customers as of January 1, 2021 shall provide net metering for
12projects that are eligible for subparagraph (C) of this
13paragraph (1) and have energized after the effective date of
14this amendatory Act of the 102nd General Assembly:
15        (A) properties owned or leased by multiple customers
16    that contribute to the operation of an eligible renewable
17    electrical generating facility through an ownership or
18    leasehold interest of at least 200 watts in such facility,
19    such as a community-owned wind project, a community-owned
20    biomass project, a community-owned solar project, or a
21    community methane digester processing livestock waste from
22    multiple sources, provided that the facility is also
23    located within the utility's service territory;
24        (B) individual units, apartments, or properties
25    located in a single building that are owned or leased by
26    multiple customers and collectively served by a common

 

 

10200HB3666sam001- 765 -LRB102 13525 AMC 28481 a

1    eligible renewable electrical generating facility, such as
2    an office or apartment building, a shopping center or
3    strip mall served by photovoltaic panels on the roof; and
4        (C) subscriptions to community renewable generation
5    projects, including community renewable generation
6    projects on the customer's side of the billing meter of a
7    host facility and partially used for the customer's own
8    load.
9    In addition, the nameplate capacity of the eligible
10renewable electric generating facility that serves the demand
11of the properties, units, or apartments identified in
12paragraphs (1) and (2) of this subsection (l) shall not exceed
135,000 2,000 kilowatts in nameplate capacity in total. Any
14eligible renewable electrical generating facility or community
15renewable generation project that is powered by photovoltaic
16electric energy and installed after the effective date of this
17amendatory Act of the 99th General Assembly must be installed
18by a qualified person in compliance with the requirements of
19Section 16-128A of the Public Utilities Act and any rules or
20regulations adopted thereunder.
21    (2) Notwithstanding anything to the contrary, an
22electricity provider shall provide credits for the electricity
23produced by the projects described in paragraph (1) of this
24subsection (l). The electricity provider shall provide credits
25that include at least energy supply, capacity, transmission,
26and, if applicable, the purchased energy adjustment at the

 

 

10200HB3666sam001- 766 -LRB102 13525 AMC 28481 a

1subscriber's energy supply rate on the subscriber's monthly
2bill equal to the subscriber's share of the production of
3electricity from the project, as determined by paragraph (3)
4of this subsection (l). For customers with transmission or
5capacity charges not charged on a kilowatt-hour basis, the
6electricity provider shall prepare a reasonable approximation
7of the kilowatt-hour equivalent value and provide that value
8as a monetary credit. The electricity provider shall submit
9these approximation methodologies to the Commission for
10review, modification, and approval. Notwithstanding anything
11to the contrary, customers on payment plans or participating
12in budget billing programs shall have credits applied on a
13monthly basis.
14    (3) Notwithstanding anything to the contrary and
15regardless of whether a subscriber to an eligible community
16renewable generation project receives power and energy service
17from the electric utility or an alternative retail electric
18supplier, for projects eligible under paragraph (C) of
19subparagraph (1) of this subsection (l), electric utilities
20serving more than 200,000 customers as of January 1, 2021
21shall provide the monetary credits to a subscriber's
22subsequent bill for the electricity produced by community
23renewable generation projects. The electric utility shall
24provide monetary credits to a subscriber's subsequent bill at
25the utility's total price to compare equal to the subscriber's
26share of the production of electricity from the project, as

 

 

10200HB3666sam001- 767 -LRB102 13525 AMC 28481 a

1determined by paragraph (5) of this subsection (l). For the
2purposes of this subsection, "total price to compare" means
3the rate or rates published by the Illinois Commerce
4Commission for energy supply for eligible customers receiving
5supply service from the electric utility, and shall include
6energy, capacity, transmission, and the purchased energy
7adjustment. Notwithstanding anything to the contrary,
8customers on payment plans or participating in budget billing
9programs shall have credits applied on a monthly basis. Any
10applicable credit or reduction in load obligation from the
11production of the community renewable generating projects
12receiving a credit under this subsection shall be credited to
13the electric utility to offset the cost of providing the
14credit. To the extent that the credit or load obligation
15reduction does not completely offset the cost of providing the
16credit to subscribers of community renewable generation
17projects as described in this subsection, the electric utility
18may recover the remaining costs through its Multi-Year Rate
19Plan. All electric utilities serving 200,000 or fewer
20customers as of January 1, 2021 shall only provide the
21monetary credits to a subscriber's subsequent bill for the
22electricity produced by community renewable generation
23projects if the subscriber receives power and energy service
24from the electric utility. Alternative retail electric
25suppliers providing power and energy service to a subscriber
26located within the service territory of an electric utility

 

 

10200HB3666sam001- 768 -LRB102 13525 AMC 28481 a

1not subject to Sections 16-108.18 and 16-118 shall provide the
2monetary credits to the subscriber's subsequent bill for the
3electricity produced by community renewable generation
4projects.
5    (4) If requested by the owner or operator of a community
6renewable generating project, an electric utility serving more
7than 200,000 customers as of January 1, 2021 shall enter into a
8net crediting agreement with the owner or operator to include
9a subscriber's subscription fee on the subscriber's monthly
10electric bill and provide the subscriber with a net credit
11equivalent to the total bill credit value for that generation
12period minus the subscription fee, provided the subscription
13fee is structured as a fixed percentage of bill credit value.
14The net crediting agreement shall set forth payment terms from
15the electric utility to the owner or operator of the community
16renewable generating project, and the electric utility may
17charge a net crediting fee to the owner or operator of a
18community renewable generating project that may not exceed 2%
19of the bill credit value. Notwithstanding anything to the
20contrary, an electric utility serving 200,000 customers or
21fewer as of January 1, 2021 shall not be obligated to enter
22into a net crediting agreement with the owner or operator of a
23community renewable generating project.
24    (5) (3) For the purposes of facilitating net metering, the
25owner or operator of the eligible renewable electrical
26generating facility or community renewable generation project

 

 

10200HB3666sam001- 769 -LRB102 13525 AMC 28481 a

1shall be responsible for determining the amount of the credit
2that each customer or subscriber participating in a project
3under this subsection (l) is to receive in the following
4manner:
5        (A) The owner or operator shall, on a monthly basis,
6    provide to the electric utility the kilowatthours of
7    generation attributable to each of the utility's retail
8    customers and subscribers participating in projects under
9    this subsection (l) in accordance with the customer's or
10    subscriber's share of the eligible renewable electric
11    generating facility's or community renewable generation
12    project's output of power and energy for such month. The
13    owner or operator shall electronically transmit such
14    calculations and associated documentation to the electric
15    utility, in a format or method set forth in the applicable
16    tariff, on a monthly basis so that the electric utility
17    can reflect the monetary credits on customers' and
18    subscribers' electric utility bills. The electric utility
19    shall be permitted to revise its tariffs to implement the
20    provisions of this amendatory Act of the 102nd General
21    Assembly this amendatory Act of the 99th General Assembly.
22    The owner or operator shall separately provide the
23    electric utility with the documentation detailing the
24    calculations supporting the credit in the manner set forth
25    in the applicable tariff.
26        (B) For those participating customers and subscribers

 

 

10200HB3666sam001- 770 -LRB102 13525 AMC 28481 a

1    who receive their energy supply from an alternative retail
2    electric supplier, the electric utility shall remit to the
3    applicable alternative retail electric supplier the
4    information provided under subparagraph (A) of this
5    paragraph (3) for such customers and subscribers in a
6    manner set forth in such alternative retail electric
7    supplier's net metering program, or as otherwise agreed
8    between the utility and the alternative retail electric
9    supplier. The alternative retail electric supplier shall
10    then submit to the utility the amount of the charges for
11    power and energy to be applied to such customers and
12    subscribers, including the amount of the credit associated
13    with net metering.
14        (C) A participating customer or subscriber may provide
15    authorization as required by applicable law that directs
16    the electric utility to submit information to the owner or
17    operator of the eligible renewable electrical generating
18    facility or community renewable generation project to
19    which the customer or subscriber has an ownership or
20    leasehold interest or a subscription. Such information
21    shall be limited to the components of the net metering
22    credit calculated under this subsection (l), including the
23    bill credit rate, total kilowatthours, and total monetary
24    credit value applied to the customer's or subscriber's
25    bill for the monthly billing period.
26    (l-5) Within 90 days after the effective date of this

 

 

10200HB3666sam001- 771 -LRB102 13525 AMC 28481 a

1amendatory Act of the 102nd General Assembly this amendatory
2Act of the 99th General Assembly, each electric utility
3subject to this Section shall file a tariff or tariffs to
4implement the provisions of subsection (l) of this Section,
5which shall, consistent with the provisions of subsection (l),
6describe the terms and conditions under which owners or
7operators of qualifying properties, units, or apartments may
8participate in net metering. The Commission shall approve, or
9approve with modification, the tariff within 120 days after
10the effective date of this amendatory Act of the 102nd General
11Assembly this amendatory Act of the 99th General Assembly.
12    (m) Nothing in this Section shall affect the right of an
13electricity provider to continue to provide, or the right of a
14retail customer to continue to receive service pursuant to a
15contract for electric service between the electricity provider
16and the retail customer in accordance with the prices, terms,
17and conditions provided for in that contract. Either the
18electricity provider or the customer may require compliance
19with the prices, terms, and conditions of the contract.
20    (n) On and after January 1, 2025 At such time, if any, that
21the load of the electricity provider's net metering customers
22equals 5% of the total peak demand supplied by that
23electricity provider during the previous year, as specified in
24subsection (j) of this Section, the net metering services
25described in subsections (d), (d-5), and (e), (e-5), and (f)
26of this Section shall no longer be offered, except as to those

 

 

10200HB3666sam001- 772 -LRB102 13525 AMC 28481 a

1eligible renewable electrical generating facilities for which
2retail customers that are receiving net metering service under
3these subsections at the time the net metering services under
4those subsections are no longer offered; those systems shall
5continue to receive net metering services described in
6subsections (d), (d-5), and (e) of this Section for the
7lifetime of the system, regardless of if those retail
8customers change electricity providers or whether the retail
9customer benefiting from the system changes. The electric
10utility serving more than 200,000 customers as of January 1,
112021 is responsible for ensuring the billing credits continue
12without lapse for the lifetime of systems, as required in
13subsection (o). Those retail customers that begin taking net
14metering service after the date that net metering services are
15no longer offered under such subsections shall be subject to
16the provisions set forth in the following paragraphs (1)
17through (3) of this subsection (n):
18        (1) An electricity provider shall charge or credit for
19    the net electricity supplied to eligible customers or
20    provided by eligible customers whose electric supply
21    service is not provided based on hourly pricing in the
22    following manner:
23            (A) If the amount of electricity used by the
24        customer during the monthly billing period exceeds the
25        amount of electricity produced by the customer, then
26        the electricity provider shall charge the customer for

 

 

10200HB3666sam001- 773 -LRB102 13525 AMC 28481 a

1        the net kilowatt-hour based electricity charges
2        reflected in the customer's electric service rate
3        supplied to and used by the customer as provided in
4        paragraph (3) of this subsection (n).
5            (B) If the amount of electricity produced by a
6        customer during the monthly billing period exceeds the
7        amount of electricity used by the customer during that
8        billing period, then the electricity provider
9        supplying that customer shall apply a 1:1
10        kilowatt-hour energy or monetary credit kilowatt-hour
11        supply charges to the customer's subsequent bill. The
12        customer shall choose between 1:1 kilowatt-hour or
13        monetary credit at the time of application. For the
14        purposes of this subsection, "kilowatt-hour supply
15        charges" means the kilowatt-hour equivalent values for
16        energy, capacity, transmission, and the purchased
17        energy adjustment, if applicable. Notwithstanding
18        anything to the contrary, customers on payment plans
19        or participating in budget billing programs shall have
20        credits applied on a monthly basis. that reflects the
21        kilowatt-hour based energy charges in the customer's
22        electric service rate to a subsequent bill for service
23        to the customer for the net electricity supplied to
24        the electricity provider. The electricity provider
25        shall continue to carry over any excess kilowatt-hour
26        or monetary energy credits earned and apply those

 

 

10200HB3666sam001- 774 -LRB102 13525 AMC 28481 a

1        credits to subsequent billing periods. For customers
2        with transmission or capacity charges not charged on a
3        kilowatt-hour basis, the electricity provider shall
4        prepare a reasonable approximation of the
5        kilowatt-hour equivalent value and provide that value
6        as a monetary credit. The electricity provider shall
7        submit these approximation methodologies to the
8        Commission for review, modification, and approval. to
9        offset any customer-generator consumption in those
10        billing periods until all credits are used or until
11        the end of the annualized period.
12            (C) (Blank). At the end of the year or annualized
13        over the period that service is supplied by means of
14        net metering, or in the event that the retail customer
15        terminates service with the electricity provider prior
16        to the end of the year or the annualized period, any
17        remaining credits in the customer's account shall
18        expire.
19        (2) An electricity provider shall charge or credit for
20    the net electricity supplied to eligible customers or
21    provided by eligible customers whose electric supply
22    service is provided based on hourly pricing in the
23    following manner:
24            (A) If the amount of electricity used by the
25        customer during any hourly period exceeds the amount
26        of electricity produced by the customer, then the

 

 

10200HB3666sam001- 775 -LRB102 13525 AMC 28481 a

1        electricity provider shall charge the customer for the
2        net electricity supplied to and used by the customer
3        as provided in paragraph (3) of this subsection (n).
4            (B) If the amount of electricity produced by a
5        customer during any hourly period exceeds the amount
6        of electricity used by the customer during that hourly
7        period, the energy provider shall calculate an energy
8        credit for the net kilowatt-hours produced in such
9        period, and shall apply that credit as a monetary
10        credit to the customer's subsequent bill. The value of
11        the energy credit shall be calculated using the same
12        price per kilowatt-hour as the electric service
13        provider would charge for kilowatt-hour energy sales
14        during that same hourly period and shall also include
15        values for capacity and transmission. For customers
16        with transmission or capacity charges not charged on a
17        kilowatt-hour basis, the electricity provider shall
18        prepare a reasonable approximation of the
19        kilowatt-hour equivalent value and provide that value
20        as a monetary credit. The electricity provider shall
21        submit these approximation methodologies to the
22        Commission for review, modification, and approval.
23        Notwithstanding anything to the contrary, customers on
24        payment plans or participating in budget billing
25        programs shall have credits applied on a monthly
26        basis.

 

 

10200HB3666sam001- 776 -LRB102 13525 AMC 28481 a

1        (3) An electricity provider shall provide electric
2    service to eligible customers who utilize net metering at
3    non-discriminatory rates that are identical, with respect
4    to rate structure, retail rate components, and any monthly
5    charges, to the rates that the customer would be charged
6    if not a net metering customer. An electricity provider
7    shall charge the customer for the net electricity supplied
8    to and used by the customer according to the terms of the
9    contract or tariff to which the same customer would be
10    assigned or be eligible for if the customer was not a net
11    metering customer. An electricity provider shall not
12    charge net metering customers any fee or charge or require
13    additional equipment, insurance, or any other requirements
14    not specifically authorized by interconnection standards
15    authorized by the Commission, unless the fee, charge, or
16    other requirement would apply to other similarly situated
17    customers who are not net metering customers. The charge
18    or credit that the customer receives for net electricity
19    shall be at a rate equal to the customer's energy supply
20    rate. The customer remains responsible for the gross
21    amount of delivery services charges, supply-related
22    charges that are kilowatt based, and all taxes and fees
23    related to such charges. The customer also remains
24    responsible for all taxes and fees that would otherwise be
25    applicable to the net amount of electricity used by the
26    customer. Paragraphs (1) and (2) of this subsection (n)

 

 

10200HB3666sam001- 777 -LRB102 13525 AMC 28481 a

1    shall not be construed to prevent an arms-length agreement
2    between an electricity provider and an eligible customer
3    that sets forth different prices, terms, and conditions
4    for the provision of net metering service, including, but
5    not limited to, the provision of the appropriate metering
6    equipment for non-residential customers. Nothing in this
7    paragraph (3) shall be interpreted to mandate that a
8    utility that is only required to provide delivery services
9    to a given customer must also sell electricity to such
10    customer.
11    (o) Within 90 days after the effective date of this
12amendatory Act of the 102nd General Assembly, each electric
13utility subject to this Section shall file a tariff, which
14shall, consistent with the provisions of this Section, propose
15the terms and conditions under which a customer may
16participate in net metering. The tariff for electric utilities
17serving more than 200,000 customers as of January 1, 2021
18shall also provide a streamlined and transparent bill
19crediting system for net metering to be managed by the
20electric utilities. The terms and conditions shall include,
21but are not limited to, that an electric utility shall manage
22and maintain billing of net metering credits and charges
23regardless of if the eligible customer takes net metering
24under an electric utility or alternative retail electric
25supplier. The electric utility serving more than 200,000
26customers as of January 1, 2021 shall process and approve all

 

 

10200HB3666sam001- 778 -LRB102 13525 AMC 28481 a

1net metering applications, even if an eligible customer is
2served by an alternative retail electric supplier; and the
3utility shall forward application approval to the appropriate
4alternative retail electric supplier. Eligibility for net
5metering shall remain with the owner of the utility billing
6address such that, if an eligible renewable electrical
7generating facility changes ownership, the net metering
8eligibility transfers to the new owner. The electric utility
9serving more than 200,000 customers as of January 1, 2021
10shall manage net metering billing for eligible customers to
11ensure full crediting occurs on electricity bills, including,
12but not limited to, ensuring net metering crediting begins
13upon commercial operation date, net metering billing transfers
14immediately if an eligible customer switches from an electric
15utility to alternative retail electric supplier or vice versa,
16and net metering billing transfers between ownership of a
17valid billing address. All transfers referenced in the
18preceding sentence shall include transfer of all banked
19credits. All electric utilities serving 200,000 or fewer
20customers as of January 1, 2021 shall manage net metering
21billing for eligible customers receiving power and energy
22service from the electric utility to ensure full crediting
23occurs on electricity bills, ensuring net metering crediting
24begins upon commercial operation date, net metering billing
25transfers immediately if an eligible customer switches from an
26electric utility to alternative retail electric supplier or

 

 

10200HB3666sam001- 779 -LRB102 13525 AMC 28481 a

1vice versa, and net metering billing transfers between
2ownership of a valid billing address. Alternative retail
3electric suppliers providing power and energy service to
4eligible customers located within the service territory of an
5electric utility serving 200,000 or fewer customers as of
6January 1, 2021 shall manage net metering billing for eligible
7customers to ensure full crediting occurs on electricity
8bills, including, but not limited to, ensuring net metering
9crediting begins upon commercial operation date, net metering
10billing transfers immediately if an eligible customer switches
11from an electric utility to alternative retail electric
12supplier or vice versa, and net metering billing transfers
13between ownership of a valid billing address.
14(Source: P.A. 99-906, eff. 6-1-17.)
 
15    (220 ILCS 5/16-107.6)
16    Sec. 16-107.6. Distributed generation rebate.
17    (a) In this Section:
18    "Additive services" means the services that distributed
19energy resources provide to the energy system and society that
20are not (1) already included in the base rebates for
21system-wide grid services; or (2) otherwise already
22compensated. Additive services may reflect, but shall not be
23limited to, any geographic, time-based, performance-based, and
24other benefits of distributed energy resources, as well as the
25present and future technological capabilities of distributed

 

 

10200HB3666sam001- 780 -LRB102 13525 AMC 28481 a

1energy resources and present and future grid needs.
2    "Distributed energy resource" means a wide range of
3technologies that are located on the customer side of the
4customer's electric meter, including, but not limited to,
5distributed generation, energy storage, electric vehicles, and
6demand response technologies.
7    "Energy storage system" means commercially available
8technology that is capable of absorbing energy and storing it
9for a period of time for use at a later time, including, but
10not limited to, electrochemical, thermal, and
11electromechanical technologies, and may be interconnected
12behind the customer's meter or interconnected behind its own
13meter.
14    "Smart inverter" means a device that converts direct
15current into alternating current and meets the IEEE 1547-2018
16equipment standards. Until devices that meet the IEEE
171547-2018 standard are available, devices that meet the UL
181741 SA standard are acceptable. can autonomously contribute
19to grid support during excursions from normal operating
20voltage and frequency conditions by providing each of the
21following: dynamic reactive and real power support, voltage
22and frequency ride-through, ramp rate controls, communication
23systems with ability to accept external commands, and other
24functions from the electric utility.
25    "Subscriber" has the meaning set forth in Section 1-10 of
26the Illinois Power Agency Act.

 

 

10200HB3666sam001- 781 -LRB102 13525 AMC 28481 a

1    "Subscription" has the meaning set forth in Section 1-10
2of the Illinois Power Agency Act.
3    "System-wide grid services" means the benefits that a
4distributed energy resource provides to the distribution grid
5for a period of no less than 25 years. System-wide grid
6services do not vary by location, time, or the performance
7characteristics of the distributed energy resource.
8System-wide grid services include, but are not limited to,
9avoided or deferred distribution capacity costs, resilience
10and reliability benefits, avoided or deferred distribution
11operation and maintenance costs, distribution voltage and
12power quality benefits, and line loss reductions.
13    "Threshold date" means December 31, 2024 or the date on
14which the utility's tariff or tariffs setting the new
15compensation values established under subsection (e) take
16effect, whichever is later. the load of an electricity
17provider's net metering customers equals 5% of the total peak
18demand supplied by that electricity provider during the
19previous year, as specified under subsection (j) of Section
2016-107.5 of this Act.
21    (b) An electric utility that serves more than 200,000
22customers in the State shall file a petition with the
23Commission requesting approval of the utility's tariff to
24provide a rebate to the owner or operator of a retail customer
25who owns or operates distributed generation, including
26third-party owned systems, that meets the following criteria:

 

 

10200HB3666sam001- 782 -LRB102 13525 AMC 28481 a

1        (1) has a nameplate generating capacity no greater
2    than 5,000 2,000 kilowatts and is primarily used to offset
3    a that customer's electricity load;
4        (2) is located on the customer's side of the billing
5    meter and premises, for the customer's own use, and not
6    for commercial use or sales, including, but not limited
7    to, wholesale sales of electric power and energy;
8        (3) is located in the electric utility's service
9    territory; and
10        (3) (4) is interconnected to electric distribution
11    facilities owned by the electric utility under rules
12    adopted by the Commission by means of the inverter or
13    smart inverter required by this Section, as applicable.
14    For purposes of this Section, "distributed generation"
15shall satisfy the definition of distributed renewable energy
16generation device set forth in Section 1-10 of the Illinois
17Power Agency Act to the extent such definition is consistent
18with the requirements of this Section.
19    In addition, any new photovoltaic distributed generation
20that is installed after June 1, 2017 (the effective date of
21Public Act 99-906) this amendatory Act of the 99th General
22Assembly must be installed by a qualified person, as defined
23by subsection (i) of Section 1-56 of the Illinois Power Agency
24Act.
25    The tariff shall include a base rebate that compensates
26distributed generation for the system-wide grid services

 

 

10200HB3666sam001- 783 -LRB102 13525 AMC 28481 a

1associated with distributed generation and, after the
2proceeding described in subsection (e) of this Section, an
3additional payment or payments for the additive services. The
4tariff shall provide that the smart inverter associated with
5the distributed generation shall provide autonomous response
6to grid conditions through its default settings as approved by
7the Commission. Default settings may not be changed after the
8execution of the interconnection agreement except by mutual
9agreement between the utility and the owner or operator of the
10distributed generation. provide that the utility shall be
11permitted to operate and control the smart inverter associated
12with the distributed generation that is the subject of the
13rebate for the purpose of preserving reliability during
14distribution system reliability events and shall address the
15terms and conditions of the operation and the compensation
16associated with the operation. Nothing in this Section shall
17negate or supersede Institute of Electrical and Electronics
18Engineers equipment interconnection requirements or standards
19or other similar standards or requirements. The tariff shall
20not limit the ability of the smart inverter or other
21distributed energy resource to provide wholesale market
22products such as regulation, demand response, or other
23services, or limit the ability of the owner of the smart
24inverter or the other distributed energy resource to receive
25compensation for providing those wholesale market products or
26services. The tariff shall also provide for additional uses of

 

 

10200HB3666sam001- 784 -LRB102 13525 AMC 28481 a

1the smart inverter that shall be separately compensated and
2which may include, but are not limited to, voltage and VAR
3support, regulation, and other grid services. As part of the
4proceeding described in subsection (e) of this Section, the
5Commission shall review and determine whether smart inverters
6can provide any additional uses or services. If the Commission
7determines that an additional use or service would be
8beneficial, the Commission shall determine the terms and
9conditions of the operation and how the use or service should
10be separately compensated.
11    (b-5) Within 30 days after the effective date of this
12amendatory Act of the 102nd General Assembly, each electric
13public utility with 3,000,000 or more retail customers shall
14file a tariff with the Commission that further compensates any
15retail customer that installs or has installed photovoltaic
16facilities paired with energy storage facilities on or
17adjacent to its premises for the benefits the facilities
18provide to the distribution grid. The tariff shall provide
19that, in addition to the other rebates identified in this
20Section, the electric utility shall rebate to such retail
21customer (i) the previously incurred and future costs of
22installing interconnection facilities and related
23infrastructure to enable full participation in the PJM
24Interconnection, LLC or its successor organization frequency
25regulation market; and (ii) all wholesale demand charges
26incurred after the effective date of this amendatory Act of

 

 

10200HB3666sam001- 785 -LRB102 13525 AMC 28481 a

1the 102nd General Assembly. The Commission shall approve, or
2approve with modification, the tariff within 120 days after
3the utility's filing.
4    (c) The proposed tariff authorized by subsection (b) of
5this Section shall include the following participation terms
6for and formulae to calculate the value of the rebates to be
7applied under this Section for distributed generation that
8satisfies the criteria set forth in subsection (b) of this
9Section:
10        (1) The owner or operator of distributed generation
11    that services (1) Until the utility files its tariff or
12    tariffs to place into effect the rebate values established
13    by the Commission under subsection (e) of this Section,
14    non-residential customers not eligible for net metering
15    under subsection (d), (d-5), or (e) of Section 16-107.5 of
16    this Act that are taking service under a net metering
17    program offered by an electricity provider under the terms
18    of Section 16-107.5 of this Act may apply for a rebate as
19    provided for in this Section. Until the threshold date,
20    the The value of the rebate shall be $250 per kilowatt of
21    nameplate generating capacity, measured as nominal DC
22    power output, of that a non-residential customer's
23    distributed generation. To the extent the distributed
24    generation also has an associated energy storage, then the
25    energy storage system shall be separately compensated with
26    a base rebate of $250 per kilowatt-hour of nameplate

 

 

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1    capacity. Any distributed generation device that is
2    compensated for storage in this subsection (1) before the
3    threshold date shall participate in one or more programs
4    determined through the Multi-Year Integrated Grid Planning
5    process that are designed to meet peak reduction and
6    flexibility. After the threshold date, the value of the
7    base rebate and additional compensation for any additive
8    services shall be as determined by the Commission in the
9    proceeding described in subsection (e) of this Section,
10    provided that the value of the base rebate for system-wide
11    grid services shall not be lower than $250 per kilowatt of
12    nameplate generating capacity of distributed generation or
13    community renewable generation project.
14        (2) The owner or operator of distributed generation
15    that, before the threshold date, would have been eligible
16    for net metering under subsection (d), (d-5), or (e) of
17    Section 16-107.5 of this Act and that has not previously
18    received a distributed generation rebate, may apply for a
19    rebate as provided for in this Section. Until the
20    threshold date, the value of the base rebate shall be $300
21    per kilowatt of nameplate generating capacity, measured as
22    nominal DC power output, of the distributed generation.
23    The owner or operator of distributed generation that,
24    before the threshold date, is eligible for net metering
25    under subsection (d), (d-5), or (e) of Section 16-107.5 of
26    this Act may apply for a base rebate for an energy storage

 

 

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1    device that uses the same smart inverter as the
2    distributed generation, regardless of whether the
3    distributed generation applies for a rebate for the
4    distributed generation device. The energy storage system
5    shall be separately compensated at a base payment of $300
6    per kilowatt-hour of nameplate capacity. Any distributed
7    generation device that is compensated for storage in this
8    subsection (2) before the threshold date shall participate
9    in a peak time rebate program, hourly pricing program, or
10    time-of-use rate program offered by the applicable
11    electric utility. After the threshold date, the value of
12    the base rebate and additional compensation for any
13    additive services shall be as determined by the Commission
14    in the proceeding described in subsection (e) of this
15    Section, provided that, prior to December 31, 2029, the
16    value of the base rebate for system-wide services shall
17    not be lower than $300 per kilowatt of nameplate
18    generating capacity of distributed generation, after which
19    it shall not be lower than $250 per kilowatt of nameplate
20    capacity.
21        (2) After the utility's tariff or tariffs setting the
22    new rebate values established under subsection (d) of this
23    Section take effect, retail customers may, as applicable,
24    make the following elections:
25            (A) Residential customers that are taking service
26        under a net metering program offered by an electricity

 

 

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1        provider under the terms of Section 16-107.5 of this
2        Act on the threshold date may elect to either continue
3        to take such service under the terms of such program as
4        in effect on such threshold date for the useful life of
5        the customer's eligible renewable electric generating
6        facility as defined in such Section, or file an
7        application to receive a rebate under the terms of
8        this Section, provided that such application must be
9        submitted within 6 months after the effective date of
10        the tariff approved under subsection (d) of this
11        Section. The value of the rebate shall be the amount
12        established by the Commission and reflected in the
13        utility's tariff pursuant to subsection (e) of this
14        Section.
15            (B) Non-residential customers that are taking
16        service under a net metering program offered by an
17        electricity provider under the terms of Section
18        16-107.5 of this Act on the threshold date may apply
19        for a rebate as provided for in this Section. The value
20        of the rebate shall be the amount established by the
21        Commission and reflected in the utility's tariff
22        pursuant to subsection (e) of this Section.
23        (3) Upon approval of a rebate application submitted
24    under this subsection (c), the retail customer shall no
25    longer be entitled to receive any delivery service credits
26    for the excess electricity generated by its facility and

 

 

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1    shall be subject to the provisions of subsection (n) of
2    Section 16-107.5 of this Act.
3        (4) To be eligible for a rebate described in this
4    subsection (c), the owner or operator of the distributed
5    generation customers who begin taking service after the
6    effective date of this amendatory Act of the 99th General
7    Assembly under a net metering program offered by an
8    electricity provider under the terms of Section 16-107.5
9    of this Act must have a smart inverter installed and in
10    operation on the associated with the customer's
11    distributed generation.
12    (d) The Commission shall review the proposed tariff
13authorized by subsection submitted under subsections (b) and
14(c) of this Section and may make changes to the tariff that are
15consistent with this Section and with the Commission's
16authority under Article IX of this Act, subject to notice and
17hearing. Following notice and hearing, the Commission shall
18issue an order approving, or approving with modification, such
19tariff no later than 240 days after the utility files its
20tariff. Upon the effective date of this amendatory Act of the
21102nd General Assembly, an electric utility shall file a
22petition with the Commission to amend and update any existing
23tariffs to comply with subsections (b) and (c).
24    (e) By no later than June 30, 2023, When the total
25generating capacity of the electricity provider's net metering
26customers is equal to 3%, the Commission shall open an

 

 

10200HB3666sam001- 790 -LRB102 13525 AMC 28481 a

1independent, statewide investigation into the value of, and
2compensation for, distributed energy resources. The Commission
3shall conduct the investigation, but may arrange for experts
4or consultants independent of the utilities and selected by
5the Commission to assist with the investigation. The cost of
6the investigation shall be shared by the utilities filing
7tariffs under subsection (b) of this Section but may be
8recovered as an expense through normal ratemaking procedures.
9an annual process and formula for calculating the value of
10rebates for the retail customers described in subsections (b)
11and (f) of this Section that submit rebate applications after
12the threshold date for an electric utility that elected to
13file a tariff pursuant to this Section.
14        (1) The Commission shall ensure that the investigation
15    includes, at minimum, diverse sets of stakeholders; a
16    review of best practices in calculating the value of
17    distributed energy resource benefits; a review of the full
18    value of the distributed energy resources and the manner
19    in which each component of that value is or is not
20    otherwise compensated; and assessments of how the value of
21    distributed energy resources may evolve based on the
22    present and future technological capabilities of
23    distributed energy resources and based on present and
24    future grid needs.
25        (2) The Commission's final order concluding this
26    investigation shall establish an annual process and

 

 

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1    formula for the compensation of distributed generation and
2    energy storage systems, and an initial set of inputs for
3    that formula. The Commission's final order concluding this
4    investigation shall establish base rebates that compensate
5    distributed generation, community renewable generation
6    projects and energy storage systems for the system-wide
7    grid services that they provide. Those base rebate values
8    shall be consistent across the state, and shall not vary
9    by customer, customer class, customer location, or any
10    other variable. With respect to rebates for distributed
11    generation or community renewable generation projects,
12    that rebate shall not be lower than $250 per kilowatt of
13    nameplate generating capacity of the distributed
14    generation or community renewable generation project. The
15    Commission's final order concluding this proceeding shall
16    also direct the utilities to update the formula, on an
17    annual basis, with inputs derived from their integrated
18    grid plans developed pursuant to Section 16-105.17. The
19    base rebate shall be updated annually based on the annual
20    updates to the formula inputs, but, with respect to
21    rebates for distributed generation or community renewable
22    generation projects, shall be no lower than $250 per
23    kilowatt of nameplate generating capacity of the
24    distributed generation or community renewable generation
25    project.
26        (3) The Commission shall also determine, as a part of

 

 

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1    its investigation under this subsection, whether
2    distributed energy resources can provide any additive
3    services. Those additive services may include services
4    that are provided through utility-controlled responses to
5    grid conditions. If the Commission determines that
6    distributed energy resources can provide additive grid
7    services, the Commission shall determine the terms and
8    conditions for the operation and compensation of those
9    services. That compensation shall be above and beyond the
10    base rebate that the distributed energy generation,
11    community renewable generation project and energy storage
12    system receives. Compensation for additive services may
13    vary by location, time, performance characteristics,
14    technology types, or other variables.
15        (4) The Commission shall ensure that compensation for
16    distributed energy resources, including base rebates and
17    any payments for additive services, shall reflect all
18    reasonably known and measurable values of the distributed
19    generation over its full expected useful life.
20    Compensation for additive services shall reflect, but
21    shall not be limited to, any geographic, time-based,
22    performance-based, and other benefits of distributed
23    generation, as well as the present and future
24    technological capabilities of distributed energy resources
25    and present and future grid needs.
26        (5) The Commission shall consider the electric

 

 

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1    utility's integrated grid plan developed pursuant to
2    Section 16-105.17 of this Act to help identify the value
3    of distributed energy resources for the purpose of
4    calculating the compensation described in this subsection.
5        (6) The Commission shall determine additional
6    compensation for distributed energy resources that creates
7    savings and value on the distribution system by being
8    co-located or in close proximity to electric vehicle
9    charging infrastructure in use by medium-duty and
10    heavy-duty vehicles, primarily serving environmental
11    justice communities, as outlined in the utility integrated
12    grid planning process under Section 16-105.17 of this Act.
13    No later than 60 days after the Commission enters its
14final order under this subsection (e), each utility shall file
15its updated tariff or tariffs in compliance with the order,
16including new tariffs for the recovery of costs incurred under
17this subsection (e) that shall provide for volumetric-based
18cost recovery, and the Commission shall approve, or approve
19with modification, the tariff or tariffs within 240 days after
20the utility's filing.
21    The investigation shall include diverse sets of
22stakeholders, calculations for valuing distributed energy
23resource benefits to the grid based on best practices, and
24assessments of present and future technological capabilities
25of distributed energy resources. The value of such rebates
26shall reflect the value of the distributed generation to the

 

 

10200HB3666sam001- 794 -LRB102 13525 AMC 28481 a

1distribution system at the location at which it is
2interconnected, taking into account the geographic,
3time-based, and performance-based benefits, as well as
4technological capabilities and present and future grid needs.
5No later than 10 days after the Commission enters its final
6order under this subsection (e), the utility shall file its
7tariff or tariffs in compliance with the order, and the
8Commission shall approve, or approve with modification, the
9tariff or tariffs within 45 days after the utility's filing.
10For those rebate applications filed after the threshold date
11but before the utility's tariff or tariffs filed pursuant to
12this subsection (e) take effect, the value of the rebate shall
13remain at the value established in subsection (c) of this
14Section until the tariff is approved.
15    (f) Notwithstanding any provision of this Act to the
16contrary, the owner or operator , developer, or subscriber of
17a community renewable generation project as defined in Section
181-10 of the Illinois Power Agency Act facility that is part of
19a net metering program provided under subsection (l) of
20Section 16-107.5 shall also be eligible to apply for the
21rebate described in this Section. The owner or operator of the
22community renewable A subscriber to the generation project
23facility may apply for a rebate in the amount of the
24subscriber's subscription only if the owner or operator, or
25previous owner or operator, of the community renewable
26generation project , developer, or previous subscriber to the

 

 

10200HB3666sam001- 795 -LRB102 13525 AMC 28481 a

1same panel or panels has not already submitted an application,
2and, regardless of whether the subscriber is a residential or
3non-residential customer, may be allowed the amount identified
4in paragraph (1) of subsection (c) or in subsection (e) of this
5Section applicable to such customer on the date that the
6application is submitted. An application for a rebate for a
7portion of a project described in this subsection (f) may be
8submitted at or after the time that a related request for net
9metering is made.
10    (g) The owner of the distributed generation or community
11renewable generation project may apply for the rebate or
12rebates approved under this Section at the time of execution
13of an interconnection agreement with the distribution utility
14and shall receive the value available at that time of
15execution of the interconnection agreement, provided the
16project reaches mechanical completion within 24 months after
17execution of the interconnection agreement. If the project has
18not reached mechanical completion within 24 months after
19execution, the owner may reapply for the rebate or rebates
20approved under this Section available at the time of
21application and shall receive the value available at the time
22of application. The utility shall issue the rebate no No later
23than 60 days after the project is energized. utility receives
24an application for a rebate under its tariff approved under
25subsection (d) or (e) of this Section, the utility shall issue
26a rebate to the applicant under the terms of the tariff. In the

 

 

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1event the application is incomplete or the utility is
2otherwise unable to calculate the payment based on the
3information provided by the owner, the utility shall issue the
4payment no later than 60 days after the application is
5complete or all requested information is received.
6    (h) An electric utility shall recover from its retail
7customers all of the costs of the rebates made under a tariff
8or tariffs approved under subsection (d) of placed into effect
9under this Section, including, but not limited to, the value
10of the rebates and all costs incurred by the utility to comply
11with and implement subsections (b) and (c) of this Section,
12but not including costs incurred by the utility to comply with
13and implement subsection (e) of this Section, consistent with
14the following provisions:
15        (1) The utility shall defer the full amount of its
16    costs incurred under this Section as a regulatory asset.
17    The total costs deferred as a regulatory asset shall be
18    amortized over a 15-year period. The unamortized balance
19    shall be recognized as of December 31 for a given year. The
20    utility shall also earn a return on the total of the
21    unamortized balance of the regulatory assets, less any
22    deferred taxes related to the unamortized balance, at an
23    annual rate equal to the utility's weighted average cost
24    of capital that includes, based on a year-end capital
25    structure, the utility's actual cost of debt for the
26    applicable calendar year and a cost of equity, which shall

 

 

10200HB3666sam001- 797 -LRB102 13525 AMC 28481 a

1    be calculated as the sum of (i) the average for the
2    applicable calendar year of the monthly average yields of
3    30-year U.S. Treasury bonds published by the Board of
4    Governors of the Federal Reserve System in its weekly H.15
5    Statistical Release or successor publication; and (ii) 580
6    basis points, including a revenue conversion factor
7    calculated to recover or refund all additional income
8    taxes that may be payable or receivable as a result of that
9    return.
10        When an electric utility creates a regulatory asset
11    under the provisions of this paragraph (1) of subsection
12    (h) Section, the costs are recovered over a period during
13    which customers also receive a benefit, which is in the
14    public interest. Accordingly, it is the intent of the
15    General Assembly that an electric utility that elects to
16    create a regulatory asset under the provisions of this
17    paragraph (1) Section shall recover all of the associated
18    costs, including, but not limited to, its cost of capital
19    as set forth in this paragraph (1) Section. After the
20    Commission has approved the prudence and reasonableness of
21    the costs that comprise the regulatory asset, the electric
22    utility shall be permitted to recover all such costs, and
23    the value and recoverability through rates of the
24    associated regulatory asset shall not be limited, altered,
25    impaired, or reduced. To enable the financing of the
26    incremental capital expenditures, including regulatory

 

 

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1    assets, for electric utilities that serve less than
2    3,000,000 retail customers but more than 500,000 retail
3    customers in the State, the utility's actual year-end
4    capital structure that includes a common equity ratio,
5    excluding goodwill, of up to and including 50% of the
6    total capital structure shall be deemed reasonable and
7    used to set rates.
8        (2) The utility, at its election, may recover all of
9    the costs it incurs under this Section as part of a filing
10    for a general increase in rates under Article IX of this
11    Act, as part of an annual filing to update a
12    performance-based formula rate under subsection (d) of
13    Section 16-108.5 of this Act, or through an automatic
14    adjustment clause tariff, provided that nothing in this
15    paragraph (2) permits the double recovery of such costs
16    from customers. If the utility elects to recover the costs
17    it incurs under subsections (b) and (c) this Section
18    through an automatic adjustment clause tariff, the utility
19    may file its proposed tariff together with the tariff it
20    files under subsection (b) of this Section or at a later
21    time. The proposed tariff shall provide for an annual
22    reconciliation, less any deferred taxes related to the
23    reconciliation, with interest at an annual rate of return
24    equal to the utility's weighted average cost of capital as
25    calculated under paragraph (1) of this subsection (h),
26    including a revenue conversion factor calculated to

 

 

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1    recover or refund all additional income taxes that may be
2    payable or receivable as a result of that return, of the
3    revenue requirement reflected in rates for each calendar
4    year, beginning with the calendar year in which the
5    utility files its automatic adjustment clause tariff under
6    this subsection (h), with what the revenue requirement
7    would have been had the actual cost information for the
8    applicable calendar year been available at the filing
9    date. The Commission shall review the proposed tariff and
10    may make changes to the tariff that are consistent with
11    this Section and with the Commission's authority under
12    Article IX of this Act, subject to notice and hearing.
13    Following notice and hearing, the Commission shall issue
14    an order approving, or approving with modification, such
15    tariff no later than 240 days after the utility files its
16    tariff.
17    (i) An electric utility shall recover from its retail
18customers, on a volumetric basis, all of the costs of the
19rebates made under a tariff or tariffs placed into effect
20under subsection (e) of this Section, including, but not
21limited to, the value of the rebates and all costs incurred by
22the utility to comply with and implement subsection (e) of
23this Section, consistent with the following provisions:
24        (1) The utility may defer a portion of its costs as a
25    regulatory asset. The Commission shall determine the
26    portion that may be appropriately deferred as a regulatory

 

 

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1    asset. Factors that the Commission shall consider in
2    determining the portion of costs that shall be deferred as
3    a regulatory asset include, but are not limited to: (i)
4    whether and the extent to which a cost effectively
5    deferred or avoided other distribution system operating
6    costs or capital expenditures; (ii) the extent to which a
7    cost provides environmental benefits; (iii) the extent to
8    which a cost improves system reliability or resilience;
9    (iv) the electric utility's distribution system plan
10    developed pursuant to Section 16-105.17 of this Act; (v)
11    the extent to which a cost advances equity principles; and
12    (vi) such other factors as the Commission deems
13    appropriate. The remainder of costs shall be deemed an
14    operating expense and shall be recoverable if found
15    prudent and reasonable by the Commission.
16    The total costs deferred as a regulatory asset shall be
17amortized over a 15-year period. The unamortized balance shall
18be recognized as of December 31 for a given year. The utility
19shall also earn a return on the total of the unamortized
20balance of the regulatory assets, less any deferred taxes
21related to the unamortized balance, at an annual rate equal to
22the utility's weighted average cost of capital that includes,
23based on a year-end capital structure, the utility's actual
24cost of debt for the applicable calendar year and a cost of
25equity, which shall be calculated as the sum of: (I) the
26average for the applicable calendar year of the monthly

 

 

10200HB3666sam001- 801 -LRB102 13525 AMC 28481 a

1average yields of 30-year U.S. Treasury bonds published by the
2Board of Governors of the Federal Reserve System in its weekly
3H.15 Statistical Release or successor publication; and (II)
4580 basis points, including a revenue conversion factor
5calculated to recover or refund all additional income taxes
6that may be payable or receivable as a result of that return.
7    The total costs deferred as a regulatory asset shall be
8amortized over a 15-year period. The unamortized balance shall
9be recognized as of December 31 for a given year. The utility
10shall also earn a return on the total of the unamortized
11balance of the regulatory assets, less any deferred taxes
12related to the unamortized balance, at an annual rate equal to
13the utility's weighted average cost of capital that includes,
14based on a year-end capital structure, the utility's actual
15cost of debt for the applicable calendar year and a cost of
16equity, which shall be calculated as the sum of: (I) the
17average for the applicable calendar year of the monthly
18average yields of 30-year U.S. Treasury bonds published by the
19Board of Governors of the Federal Reserve System in its weekly
20H.15 Statistical Release or successor publication; and (II)
21580 basis points, including a revenue conversion factor
22calculated to recover or refund all additional income taxes
23that may be payable or receivable as a result of that return.
24        (2) The utility may recover all of the costs through
25    an automatic adjustment clause tariff, on a volumetric
26    basis. The utility may file its proposed cost-recovery

 

 

10200HB3666sam001- 802 -LRB102 13525 AMC 28481 a

1    tariff together with the tariff it files under subsection
2    (e) of this Section or at a later time. The proposed tariff
3    shall provide for an annual reconciliation, less any
4    deferred taxes related to the reconciliation, with
5    interest at an annual rate of return equal to the
6    utility's weighted average cost of capital as calculated
7    under paragraph (1) of this subsection (i), including a
8    revenue conversion factor calculated to recover or refund
9    all additional income taxes that may be payable or
10    receivable as a result of that return, of the revenue
11    requirement reflected in rates for each calendar year,
12    beginning with the calendar year in which the utility
13    files its automatic adjustment clause tariff under this
14    subsection (i), with what the revenue requirement would
15    have been had the actual cost information for the
16    applicable calendar year been available at the filing
17    date. The Commission shall review the proposed tariff and
18    may make changes to the tariff that are consistent with
19    this Section and with the Commission's authority under
20    Article IX of this Act, subject to notice and hearing.
21    Following notice and hearing, the Commission shall issue
22    an order approving, or approving with modification, such
23    tariff no later than 240 days after the utility files its
24    tariff.
25    (j) (i) No later than 90 days after the Commission enters
26an order, or order on rehearing, whichever is later, approving

 

 

10200HB3666sam001- 803 -LRB102 13525 AMC 28481 a

1an electric utility's proposed tariff under subsection (d) of
2this Section, the electric utility shall provide notice of the
3availability of rebates under this Section. Subsequent to the
4utility's notice, any entity that offers in the State, for
5sale or lease, distributed generation and estimates the dollar
6saving attributable to such distributed generation shall
7provide estimates based on both delivery service credits and
8the rebates available under this Section.
9(Source: P.A. 99-906, eff. 6-1-17.)
 
10    (220 ILCS 5/16-108)
11    Sec. 16-108. Recovery of costs associated with the
12provision of delivery and other services.
13    (a) An electric utility shall file a delivery services
14tariff with the Commission at least 210 days prior to the date
15that it is required to begin offering such services pursuant
16to this Act. An electric utility shall provide the components
17of delivery services that are subject to the jurisdiction of
18the Federal Energy Regulatory Commission at the same prices,
19terms and conditions set forth in its applicable tariff as
20approved or allowed into effect by that Commission. The
21Commission shall otherwise have the authority pursuant to
22Article IX to review, approve, and modify the prices, terms
23and conditions of those components of delivery services not
24subject to the jurisdiction of the Federal Energy Regulatory
25Commission, including the authority to determine the extent to

 

 

10200HB3666sam001- 804 -LRB102 13525 AMC 28481 a

1which such delivery services should be offered on an unbundled
2basis. In making any such determination the Commission shall
3consider, at a minimum, the effect of additional unbundling on
4(i) the objective of just and reasonable rates, (ii) electric
5utility employees, and (iii) the development of competitive
6markets for electric energy services in Illinois.
7    (b) The Commission shall enter an order approving, or
8approving as modified, the delivery services tariff no later
9than 30 days prior to the date on which the electric utility
10must commence offering such services. The Commission may
11subsequently modify such tariff pursuant to this Act.
12    (c) The electric utility's tariffs shall define the
13classes of its customers for purposes of delivery services
14charges. Delivery services shall be priced and made available
15to all retail customers electing delivery services in each
16such class on a nondiscriminatory basis regardless of whether
17the retail customer chooses the electric utility, an affiliate
18of the electric utility, or another entity as its supplier of
19electric power and energy. Charges for delivery services shall
20be cost based, and shall allow the electric utility to recover
21the costs of providing delivery services through its charges
22to its delivery service customers that use the facilities and
23services associated with such costs. Such costs shall include
24the costs of owning, operating and maintaining transmission
25and distribution facilities. The Commission shall also be
26authorized to consider whether, and if so to what extent, the

 

 

10200HB3666sam001- 805 -LRB102 13525 AMC 28481 a

1following costs are appropriately included in the electric
2utility's delivery services rates: (i) the costs of that
3portion of generation facilities used for the production and
4absorption of reactive power in order that retail customers
5located in the electric utility's service area can receive
6electric power and energy from suppliers other than the
7electric utility, and (ii) the costs associated with the use
8and redispatch of generation facilities to mitigate
9constraints on the transmission or distribution system in
10order that retail customers located in the electric utility's
11service area can receive electric power and energy from
12suppliers other than the electric utility. Nothing in this
13subsection shall be construed as directing the Commission to
14allocate any of the costs described in (i) or (ii) that are
15found to be appropriately included in the electric utility's
16delivery services rates to any particular customer group or
17geographic area in setting delivery services rates.
18    (d) The Commission shall establish charges, terms and
19conditions for delivery services that are just and reasonable
20and shall take into account customer impacts when establishing
21such charges. In establishing charges, terms and conditions
22for delivery services, the Commission shall take into account
23voltage level differences. A retail customer shall have the
24option to request to purchase electric service at any delivery
25service voltage reasonably and technically feasible from the
26electric facilities serving that customer's premises provided

 

 

10200HB3666sam001- 806 -LRB102 13525 AMC 28481 a

1that there are no significant adverse impacts upon system
2reliability or system efficiency. A retail customer shall also
3have the option to request to purchase electric service at any
4point of delivery that is reasonably and technically feasible
5provided that there are no significant adverse impacts on
6system reliability or efficiency. Such requests shall not be
7unreasonably denied.
8    (e) Electric utilities shall recover the costs of
9installing, operating or maintaining facilities for the
10particular benefit of one or more delivery services customers,
11including without limitation any costs incurred in complying
12with a customer's request to be served at a different voltage
13level, directly from the retail customer or customers for
14whose benefit the costs were incurred, to the extent such
15costs are not recovered through the charges referred to in
16subsections (c) and (d) of this Section.
17    (f) An electric utility shall be entitled but not required
18to implement transition charges in conjunction with the
19offering of delivery services pursuant to Section 16-104. If
20an electric utility implements transition charges, it shall
21implement such charges for all delivery services customers and
22for all customers described in subsection (h), but shall not
23implement transition charges for power and energy that a
24retail customer takes from cogeneration or self-generation
25facilities located on that retail customer's premises, if such
26facilities meet the following criteria:

 

 

10200HB3666sam001- 807 -LRB102 13525 AMC 28481 a

1        (i) the cogeneration or self-generation facilities
2    serve a single retail customer and are located on that
3    retail customer's premises (for purposes of this
4    subparagraph and subparagraph (ii), an industrial or
5    manufacturing retail customer and a third party contractor
6    that is served by such industrial or manufacturing
7    customer through such retail customer's own electrical
8    distribution facilities under the circumstances described
9    in subsection (vi) of the definition of "alternative
10    retail electric supplier" set forth in Section 16-102,
11    shall be considered a single retail customer);
12        (ii) the cogeneration or self-generation facilities
13    either (A) are sized pursuant to generally accepted
14    engineering standards for the retail customer's electrical
15    load at that premises (taking into account standby or
16    other reliability considerations related to that retail
17    customer's operations at that site) or (B) if the facility
18    is a cogeneration facility located on the retail
19    customer's premises, the retail customer is the thermal
20    host for that facility and the facility has been designed
21    to meet that retail customer's thermal energy requirements
22    resulting in electrical output beyond that retail
23    customer's electrical demand at that premises, comply with
24    the operating and efficiency standards applicable to
25    "qualifying facilities" specified in title 18 Code of
26    Federal Regulations Section 292.205 as in effect on the

 

 

10200HB3666sam001- 808 -LRB102 13525 AMC 28481 a

1    effective date of this amendatory Act of 1999;
2        (iii) the retail customer on whose premises the
3    facilities are located either has an exclusive right to
4    receive, and corresponding obligation to pay for, all of
5    the electrical capacity of the facility, or in the case of
6    a cogeneration facility that has been designed to meet the
7    retail customer's thermal energy requirements at that
8    premises, an identified amount of the electrical capacity
9    of the facility, over a minimum 5-year period; and
10        (iv) if the cogeneration facility is sized for the
11    retail customer's thermal load at that premises but
12    exceeds the electrical load, any sales of excess power or
13    energy are made only at wholesale, are subject to the
14    jurisdiction of the Federal Energy Regulatory Commission,
15    and are not for the purpose of circumventing the
16    provisions of this subsection (f).
17If a generation facility located at a retail customer's
18premises does not meet the above criteria, an electric utility
19implementing transition charges shall implement a transition
20charge until December 31, 2006 for any power and energy taken
21by such retail customer from such facility as if such power and
22energy had been delivered by the electric utility. Provided,
23however, that an industrial retail customer that is taking
24power from a generation facility that does not meet the above
25criteria but that is located on such customer's premises will
26not be subject to a transition charge for the power and energy

 

 

10200HB3666sam001- 809 -LRB102 13525 AMC 28481 a

1taken by such retail customer from such generation facility if
2the facility does not serve any other retail customer and
3either was installed on behalf of the customer and for its own
4use prior to January 1, 1997, or is both predominantly fueled
5by byproducts of such customer's manufacturing process at such
6premises and sells or offers an average of 300 megawatts or
7more of electricity produced from such generation facility
8into the wholesale market. Such charges shall be calculated as
9provided in Section 16-102, and shall be collected on each
10kilowatt-hour delivered under a delivery services tariff to a
11retail customer from the date the customer first takes
12delivery services until December 31, 2006 except as provided
13in subsection (h) of this Section. Provided, however, that an
14electric utility, other than an electric utility providing
15service to at least 1,000,000 customers in this State on
16January 1, 1999, shall be entitled to petition for entry of an
17order by the Commission authorizing the electric utility to
18implement transition charges for an additional period ending
19no later than December 31, 2008. The electric utility shall
20file its petition with supporting evidence no earlier than 16
21months, and no later than 12 months, prior to December 31,
222006. The Commission shall hold a hearing on the electric
23utility's petition and shall enter its order no later than 8
24months after the petition is filed. The Commission shall
25determine whether and to what extent the electric utility
26shall be authorized to implement transition charges for an

 

 

10200HB3666sam001- 810 -LRB102 13525 AMC 28481 a

1additional period. The Commission may authorize the electric
2utility to implement transition charges for some or all of the
3additional period, and shall determine the mitigation factors
4to be used in implementing such transition charges; provided,
5that the Commission shall not authorize mitigation factors
6less than 110% of those in effect during the 12 months ended
7December 31, 2006. In making its determination, the Commission
8shall consider the following factors: the necessity to
9implement transition charges for an additional period in order
10to maintain the financial integrity of the electric utility;
11the prudence of the electric utility's actions in reducing its
12costs since the effective date of this amendatory Act of 1997;
13the ability of the electric utility to provide safe, adequate
14and reliable service to retail customers in its service area;
15and the impact on competition of allowing the electric utility
16to implement transition charges for the additional period.
17    (g) The electric utility shall file tariffs that establish
18the transition charges to be paid by each class of customers to
19the electric utility in conjunction with the provision of
20delivery services. The electric utility's tariffs shall define
21the classes of its customers for purposes of calculating
22transition charges. The electric utility's tariffs shall
23provide for the calculation of transition charges on a
24customer-specific basis for any retail customer whose average
25monthly maximum electrical demand on the electric utility's
26system during the 6 months with the customer's highest monthly

 

 

10200HB3666sam001- 811 -LRB102 13525 AMC 28481 a

1maximum electrical demands equals or exceeds 3.0 megawatts for
2electric utilities having more than 1,000,000 customers, and
3for other electric utilities for any customer that has an
4average monthly maximum electrical demand on the electric
5utility's system of one megawatt or more, and (A) for which
6there exists data on the customer's usage during the 3 years
7preceding the date that the customer became eligible to take
8delivery services, or (B) for which there does not exist data
9on the customer's usage during the 3 years preceding the date
10that the customer became eligible to take delivery services,
11if in the electric utility's reasonable judgment there exists
12comparable usage information or a sufficient basis to develop
13such information, and further provided that the electric
14utility can require customers for which an individual
15calculation is made to sign contracts that set forth the
16transition charges to be paid by the customer to the electric
17utility pursuant to the tariff.
18    (h) An electric utility shall also be entitled to file
19tariffs that allow it to collect transition charges from
20retail customers in the electric utility's service area that
21do not take delivery services but that take electric power or
22energy from an alternative retail electric supplier or from an
23electric utility other than the electric utility in whose
24service area the customer is located. Such charges shall be
25calculated, in accordance with the definition of transition
26charges in Section 16-102, for the period of time that the

 

 

10200HB3666sam001- 812 -LRB102 13525 AMC 28481 a

1customer would be obligated to pay transition charges if it
2were taking delivery services, except that no deduction for
3delivery services revenues shall be made in such calculation,
4and usage data from the customer's class shall be used where
5historical usage data is not available for the individual
6customer. The customer shall be obligated to pay such charges
7on a lump sum basis on or before the date on which the customer
8commences to take service from the alternative retail electric
9supplier or other electric utility, provided, that the
10electric utility in whose service area the customer is located
11shall offer the customer the option of signing a contract
12pursuant to which the customer pays such charges ratably over
13the period in which the charges would otherwise have applied.
14    (i) An electric utility shall be entitled to add to the
15bills of delivery services customers charges pursuant to
16Sections 9-221, 9-222 (except as provided in Section 9-222.1),
17and Section 16-114 of this Act, Section 5-5 of the Electricity
18Infrastructure Maintenance Fee Law, Section 6-5 of the
19Renewable Energy, Energy Efficiency, and Coal Resources
20Development Law of 1997, and Section 13 of the Energy
21Assistance Act.
22    (i-5) An electric utility required to impose the Coal to
23Solar and Energy Storage Initiative Charge provided for in
24subsection (c-5) of Section 1-75 of the Illinois Power Agency
25Act shall add such charge to the bills of its delivery services
26customers pursuant to the terms of a tariff conforming to the

 

 

10200HB3666sam001- 813 -LRB102 13525 AMC 28481 a

1requirements of subsection (c-5) of Section 1-75 of the
2Illinois Power Agency Act and this subsection (i-5) and filed
3with and approved by the Commission. The electric utility
4shall file its proposed tariff with the Commission on or
5before July 1, 2022 to be effective, after review and approval
6or modification by the Commission, beginning January 1, 2023.
7On or before December 1, 2022, the Commission shall review the
8electric utility's proposed tariff, including by conducting a
9docketed proceeding if deemed necessary by the Commission, and
10shall approve the proposed tariff or direct the electric
11utility to make modifications the Commission finds necessary
12for the tariff to conform to the requirements of subsection
13(c-5) of Section 1-75 of the Illinois Power Agency Act and this
14subsection (i-5). The electric utility's tariff shall provide
15for imposition of the Coal to Solar and Energy Storage
16Initiative Charge on a per-kilowatthour basis to all
17kilowatthours delivered by the electric utility to its
18delivery services customers. The tariff shall provide for the
19calculation of the Coal to Solar and Energy Storage Initiative
20Charge to be in effect for the year beginning January 1, 2023
21and each year beginning January 1 thereafter, sufficient to
22collect the electric utility's estimated payment obligations
23for the delivery year beginning the following June 1 under
24contracts for purchase of renewable energy credits entered
25into pursuant to subsection (c-5) of Section 1-75 of the
26Illinois Power Agency Act and the obligations of the

 

 

10200HB3666sam001- 814 -LRB102 13525 AMC 28481 a

1Department of Commerce and Economic Opportunity, or any
2successor department or agency, which for purposes of this
3subsection (i-5) shall be referred to as the Department, to
4make grant payments during such delivery year from the Coal to
5Solar and Energy Storage Initiative Fund pursuant to grant
6contracts entered into pursuant to subsection (c-5) of Section
71-75 of the Illinois Power Agency Act, and using the electric
8utility's kilowatthour deliveries to its delivery services
9customers during the delivery year ended May 31 of the
10preceding calendar year. On or before November 1 of each year
11beginning November 1, 2022, the Department shall notify the
12electric utilities of the amount of the Department's estimated
13obligations for grant payments during the delivery year
14beginning the following June 1 pursuant to grant contracts
15entered into pursuant to subsection (c-5) of Section 1-75 of
16the Illinois Power Agency Act; and each electric utility shall
17incorporate in the calculation of its Coal to Solar and Energy
18Storage Initiative Charge the fractional portion of the
19Department's estimated obligations equal to the electric
20utility's kilowatthour deliveries to its delivery services
21customers in the delivery year ended the preceding May 31 to
22the aggregate deliveries of both electric utilities to
23delivery services customers in such delivery year. The
24electric utility shall remit on a monthly basis to the State
25Treasurer, for deposit in the Coal to Solar and Energy Storage
26Initiative Fund provided for in subsection (c-5) of Section

 

 

10200HB3666sam001- 815 -LRB102 13525 AMC 28481 a

11-75 of the Illinois Power Agency Act, the electric utility's
2collections of the Coal to Solar and Energy Storage Initiative
3Charge estimated to be needed by the Department for grant
4payments pursuant to grant contracts entered into pursuant to
5subsection (c-5) of Section 1-75 of the Illinois Power Agency
6Act. The initial charge under the electric utility's tariff
7shall be effective for kilowatthours delivered beginning
8January 1, 2023, and thereafter shall be revised to be
9effective January 1, 2024 and each January 1 thereafter, based
10on the payment obligations for the delivery year beginning the
11following June 1. The tariff shall provide for the electric
12utility to make an annual filing with the Commission on or
13before November 15 of each year, beginning in 2023, setting
14forth the Coal to Solar and Energy Storage Initiative Charge
15to be in effect for the year beginning the following January 1.
16The electric utility's tariff shall also provide that the
17electric utility shall make a filing with the Commission on or
18before August 1 of each year beginning in 2024 setting forth a
19reconciliation, for the delivery year ended the preceding May
2031, of the electric utility's collections of the Coal to Solar
21and Energy Storage Initiative Charge against actual payments
22for renewable energy credits pursuant to contracts entered
23into, and the actual grant payments by the Department pursuant
24to grant contracts entered into, pursuant to subsection (c-5)
25of Section 1-75 of the Illinois Power Agency Act. The tariff
26shall provide that any excess or shortfall of collections to

 

 

10200HB3666sam001- 816 -LRB102 13525 AMC 28481 a

1payments shall be deducted from or added to, on a
2per-kilowatthour basis, the Coal to Solar and Energy Storage
3Initiative Charge, over the 6-month period beginning October 1
4of that calendar year.
5    (j) If a retail customer that obtains electric power and
6energy from cogeneration or self-generation facilities
7installed for its own use on or before January 1, 1997,
8subsequently takes service from an alternative retail electric
9supplier or an electric utility other than the electric
10utility in whose service area the customer is located for any
11portion of the customer's electric power and energy
12requirements formerly obtained from those facilities
13(including that amount purchased from the utility in lieu of
14such generation and not as standby power purchases, under a
15cogeneration displacement tariff in effect as of the effective
16date of this amendatory Act of 1997), the transition charges
17otherwise applicable pursuant to subsections (f), (g), or (h)
18of this Section shall not be applicable in any year to that
19portion of the customer's electric power and energy
20requirements formerly obtained from those facilities,
21provided, that for purposes of this subsection (j), such
22portion shall not exceed the average number of kilowatt-hours
23per year obtained from the cogeneration or self-generation
24facilities during the 3 years prior to the date on which the
25customer became eligible for delivery services, except as
26provided in subsection (f) of Section 16-110.

 

 

10200HB3666sam001- 817 -LRB102 13525 AMC 28481 a

1    (k) The electric utility shall be entitled to recover
2through tariffed charges all of the costs associated with the
3purchase of zero emission credits from zero emission
4facilities to meet the requirements of subsection (d-5) of
5Section 1-75 of the Illinois Power Agency Act and all of the
6costs associated with the purchase of carbon mitigation
7credits from carbon-free energy resources to meet the
8requirements of subsection (d-10) of Section 1-75 of the
9Illinois Power Agency Act. Such costs shall include the costs
10of procuring the zero emission credits and carbon mitigation
11credits from carbon-free energy resources, as well as the
12reasonable costs that the utility incurs as part of the
13procurement processes and to implement and comply with plans
14and processes approved by the Commission under subsections
15such subsection (d-5) and (d-10). The costs shall be allocated
16across all retail customers through a single, uniform cents
17per kilowatt-hour charge applicable to all retail customers,
18which shall appear as a separate line item on each customer's
19bill. Beginning June 1, 2017, the electric utility shall be
20entitled to recover through tariffed charges all of the costs
21associated with the purchase of renewable energy resources to
22meet the renewable energy resource standards of subsection (c)
23of Section 1-75 of the Illinois Power Agency Act, under
24procurement plans as approved in accordance with that Section
25and Section 16-111.5 of this Act. Such costs shall include the
26costs of procuring the renewable energy resources, as well as

 

 

10200HB3666sam001- 818 -LRB102 13525 AMC 28481 a

1the reasonable costs that the utility incurs as part of the
2procurement processes and to implement and comply with plans
3and processes approved by the Commission under such Sections.
4The costs associated with the purchase of renewable energy
5resources shall be allocated across all retail customers in
6proportion to the amount of renewable energy resources the
7utility procures for such customers through a single, uniform
8cents per kilowatt-hour charge applicable to such retail
9customers, which shall appear as a separate line item on each
10such customer's bill. The credits, costs, and penalties
11associated with the self-direct renewable portfolio standard
12compliance program described in subparagraph (R) of paragraph
13(1) of subsection (c) of Section 1-75 of the Illinois Power
14Agency Act shall be allocated to approved eligible self-direct
15customers by the utility in a cents per kilowatt-hour credit,
16cost, or penalty, which shall appear as a separate line item on
17each such customer's bill.
18    Notwithstanding whether the Commission has approved the
19initial long-term renewable resources procurement plan as of
20June 1, 2017, an electric utility shall place new tariffed
21charges into effect beginning with the June 2017 monthly
22billing period, to the extent practicable, to begin recovering
23the costs of procuring renewable energy resources, as those
24charges are calculated under the limitations described in
25subparagraph (E) of paragraph (1) of subsection (c) of Section
261-75 of the Illinois Power Agency Act. Notwithstanding the

 

 

10200HB3666sam001- 819 -LRB102 13525 AMC 28481 a

1date on which the utility places such new tariffed charges
2into effect, the utility shall be permitted to collect the
3charges under such tariff as if the tariff had been in effect
4beginning with the first day of the June 2017 monthly billing
5period. For the delivery years commencing June 1, 2017, June
61, 2018, and June 1, 2019, and each delivery year thereafter,
7the electric utility shall deposit into a separate interest
8bearing account of a financial institution the monies
9collected under the tariffed charges. Money collected from
10customers for the procurement of renewable energy resources in
11a given delivery year may be spent by the utility for the
12procurement of renewable resources over any of the following 5
13delivery years, after which unspent money shall be credited
14back to retail customers. The electric utility shall spend all
15money collected in earlier delivery years that has not yet
16been returned to customers, first, before spending money
17collected in later delivery years. Any interest earned shall
18be credited back to retail customers under the reconciliation
19proceeding provided for in this subsection (k), provided that
20the electric utility shall first be reimbursed from the
21interest for the administrative costs that it incurs to
22administer and manage the account. Any taxes due on the funds
23in the account, or interest earned on it, will be paid from the
24account or, if insufficient monies are available in the
25account, from the monies collected under the tariffed charges
26to recover the costs of procuring renewable energy resources.

 

 

10200HB3666sam001- 820 -LRB102 13525 AMC 28481 a

1Monies deposited in the account shall be subject to the
2review, reconciliation, and true-up process described in this
3subsection (k) that is applicable to the funds collected and
4costs incurred for the procurement of renewable energy
5resources.
6    The electric utility shall be entitled to recover all of
7the costs identified in this subsection (k) through automatic
8adjustment clause tariffs applicable to all of the utility's
9retail customers that allow the electric utility to adjust its
10tariffed charges consistent with this subsection (k). The
11determination as to whether any excess funds were collected
12during a given delivery year for the purchase of renewable
13energy resources, and the crediting of any excess funds back
14to retail customers, shall not be made until after the close of
15the delivery year, which will ensure that the maximum amount
16of funds is available to implement the approved long-term
17renewable resources procurement plan during a given delivery
18year. The amount of excess funds eligible to be credited back
19to retail customers shall be reduced by an amount equal to the
20payment obligations required by any contracts entered into by
21an electric utility under contracts described in subsection
22(b) of Section 1-56 and subsection (c) of Section 1-75 of the
23Illinois Power Agency Act, even if such payments have not yet
24been made and regardless of the delivery year in which those
25payment obligations were incurred. Notwithstanding anything to
26the contrary, including in tariffs authorized by this

 

 

10200HB3666sam001- 821 -LRB102 13525 AMC 28481 a

1subsection (k) in effect prior to the effective date of this
2amendatory Act of the 102nd General Assembly, all unspent
3funds as of May 31, 2021 shall remain in the utility account
4and shall on a first in, first out basis be used toward utility
5payment obligations under contracts described in subsection
6(b) of Section 1-56 and subsection (c) of Section 1-75 of the
7Illinois Power Agency Act. The electric utility's collections
8under such automatic adjustment clause tariffs to recover the
9costs of renewable energy resources, and zero emission credits
10from zero emission facilities, and carbon mitigation credits
11from carbon-free energy resources shall be subject to separate
12annual review, reconciliation, and true-up against actual
13costs by the Commission under a procedure that shall be
14specified in the electric utility's automatic adjustment
15clause tariffs and that shall be approved by the Commission in
16connection with its approval of such tariffs. The procedure
17shall provide that any difference between the electric
18utility's collections for zero emission credits and carbon
19mitigation credits under the automatic adjustment charges for
20an annual period and the electric utility's actual costs of
21renewable energy resources and zero emission credits from zero
22emission facilities and carbon mitigation credits from
23carbon-free energy resources for that same annual period shall
24be refunded to or collected from, as applicable, the electric
25utility's retail customers in subsequent periods.
26    Nothing in this subsection (k) is intended to affect,

 

 

10200HB3666sam001- 822 -LRB102 13525 AMC 28481 a

1limit, or change the right of the electric utility to recover
2the costs associated with the procurement of renewable energy
3resources for periods commencing before, on, or after June 1,
42017, as otherwise provided in the Illinois Power Agency Act.
5    Notwithstanding anything to the contrary, the Commission
6shall not conduct an annual review, reconciliation, and
7true-up associated with renewable energy resources'
8collections and costs for the delivery years commencing June
91, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and
10shall instead conduct a single review, reconciliation, and
11true-up associated with renewable energy resources'
12collections and costs for the 4-year period beginning June 1,
132017 and ending May 31, 2021, provided that the review,
14reconciliation, and true-up shall not be initiated until after
15August 31, 2021. During the 4-year period, the utility shall
16be permitted to collect and retain funds under this subsection
17(k) and to purchase renewable energy resources under an
18approved long-term renewable resources procurement plan using
19those funds regardless of the delivery year in which the funds
20were collected during the 4-year period.
21    If the amount of funds collected during the delivery year
22commencing June 1, 2017, exceeds the costs incurred during
23that delivery year, then up to half of this excess amount, as
24calculated on June 1, 2018, may be used to fund the programs
25under subsection (b) of Section 1-56 of the Illinois Power
26Agency Act in the same proportion the programs are funded

 

 

10200HB3666sam001- 823 -LRB102 13525 AMC 28481 a

1under that subsection (b). However, any amount identified
2under this subsection (k) to fund programs under subsection
3(b) of Section 1-56 of the Illinois Power Agency Act shall be
4reduced if it exceeds the funding shortfall. For purposes of
5this Section, "funding shortfall" means the difference between
6$200,000,000 and the amount appropriated by the General
7Assembly to the Illinois Power Agency Renewable Energy
8Resources Fund during the period that commences on the
9effective date of this amendatory act of the 99th General
10Assembly and ends on August 1, 2018.
11    If the amount of funds collected during the delivery year
12commencing June 1, 2018, exceeds the costs incurred during
13that delivery year, then up to half of this excess amount, as
14calculated on June 1, 2019, may be used to fund the programs
15under subsection (b) of Section 1-56 of the Illinois Power
16Agency Act in the same proportion the programs are funded
17under that subsection (b). However, any amount identified
18under this subsection (k) to fund programs under subsection
19(b) of Section 1-56 of the Illinois Power Agency Act shall be
20reduced if it exceeds the funding shortfall.
21    If the amount of funds collected during the delivery year
22commencing June 1, 2019, exceeds the costs incurred during
23that delivery year, then up to half of this excess amount, as
24calculated on June 1, 2020, may be used to fund the programs
25under subsection (b) of Section 1-56 of the Illinois Power
26Agency Act in the same proportion the programs are funded

 

 

10200HB3666sam001- 824 -LRB102 13525 AMC 28481 a

1under that subsection (b). However, any amount identified
2under this subsection (k) to fund programs under subsection
3(b) of Section 1-56 of the Illinois Power Agency Act shall be
4reduced if it exceeds the funding shortfall.
5    The funding available under this subsection (k), if any,
6for the programs described under subsection (b) of Section
71-56 of the Illinois Power Agency Act shall not reduce the
8amount of funding for the programs described in subparagraph
9(O) of paragraph (1) of subsection (c) of Section 1-75 of the
10Illinois Power Agency Act. If funding is available under this
11subsection (k) for programs described under subsection (b) of
12Section 1-56 of the Illinois Power Agency Act, then the
13long-term renewable resources plan shall provide for the
14Agency to procure contracts in an amount that does not exceed
15the funding, and the contracts approved by the Commission
16shall be executed by the applicable utility or utilities.
17    (l) A utility that has terminated any contract executed
18under subsection (d-5) or (d-10) of Section 1-75 of the
19Illinois Power Agency Act shall be entitled to recover any
20remaining balance associated with the purchase of zero
21emission credits prior to such termination, and such utility
22shall also apply a credit to its retail customer bills in the
23event of any over-collection.
24    (m)(1) An electric utility that recovers its costs of
25procuring zero emission credits from zero emission facilities
26through a cents-per-kilowatthour charge under to subsection

 

 

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1(k) of this Section shall be subject to the requirements of
2this subsection (m). Notwithstanding anything to the contrary,
3such electric utility shall, beginning on April 30, 2018, and
4each April 30 thereafter until April 30, 2026, calculate
5whether any reduction must be applied to such
6cents-per-kilowatthour charge that is paid by retail customers
7of the electric utility that have opted out of are exempt from
8subsections (a) through (j) of Section 8-103B of this Act
9under subsection (l) of Section 8-103B. Such charge shall be
10reduced for such customers for the next delivery year
11commencing on June 1 based on the amount necessary, if any, to
12limit the annual estimated average net increase for the prior
13calendar year due to the future energy investment costs to no
14more than 1.3% of 5.98 cents per kilowatt-hour, which is the
15average amount paid per kilowatthour for electric service
16during the year ending December 31, 2015 by Illinois
17industrial retail customers, as reported to the Edison
18Electric Institute.
19    The calculations required by this subsection (m) shall be
20made only once for each year, and no subsequent rate impact
21determinations shall be made.
22    (2) For purposes of this Section, "future energy
23investment costs" shall be calculated by subtracting the
24cents-per-kilowatthour charge identified in subparagraph (A)
25of this paragraph (2) from the sum of the
26cents-per-kilowatthour charges identified in subparagraph (B)

 

 

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1of this paragraph (2):
2        (A) The cents-per-kilowatthour charge identified in
3    the electric utility's tariff placed into effect under
4    Section 8-103 of the Public Utilities Act that, on
5    December 1, 2016, was applicable to those retail customers
6    that have opted out of are exempt from subsections (a)
7    through (j) of Section 8-103B of this Act under subsection
8    (l) of Section 8-103B.
9        (B) The sum of the following cents-per-kilowatthour
10    charges applicable to those retail customers that have
11    opted out of are exempt from subsections (a) through (j)
12    of Section 8-103B of this Act under subsection (l) of
13    Section 8-103B, provided that if one or more of the
14    following charges has been in effect and applied to such
15    customers for more than one calendar year, then each
16    charge shall be equal to the average of the charges
17    applied over a period that commences with the calendar
18    year ending December 31, 2017 and ends with the most
19    recently completed calendar year prior to the calculation
20    required by this subsection (m):
21            (i) the cents-per-kilowatthour charge to recover
22        the costs incurred by the utility under subsection
23        (d-5) of Section 1-75 of the Illinois Power Agency
24        Act, adjusted for any reductions required under this
25        subsection (m); and
26            (ii) the cents-per-kilowatthour charge to recover

 

 

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1        the costs incurred by the utility under Section
2        16-107.6 of the Public Utilities Act.
3        If no charge was applied for a given calendar year
4    under item (i) or (ii) of this subparagraph (B), then the
5    value of the charge for that year shall be zero.
6    (3) If a reduction is required by the calculation
7performed under this subsection (m), then the amount of the
8reduction shall be multiplied by the number of years reflected
9in the averages calculated under subparagraph (B) of paragraph
10(2) of this subsection (m). Such reduction shall be applied to
11the cents-per-kilowatthour charge that is applicable to those
12retail customers that have opted out of are exempt from
13subsections (a) through (j) of Section 8-103B of this Act
14under subsection (l) of Section 8-103B beginning with the next
15delivery year commencing after the date of the calculation
16required by this subsection (m).
17    (4) The electric utility shall file a notice with the
18Commission on May 1 of 2018 and each May 1 thereafter until May
191, 2026 containing the reduction, if any, which must be
20applied for the delivery year which begins in the year of the
21filing. The notice shall contain the calculations made
22pursuant to this Section. By October 1 of each year beginning
23in 2018, each electric utility shall notify the Commission if
24it appears, based on an estimate of the calculation required
25in this subsection (m), that a reduction will be required in
26the next year.

 

 

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1(Source: P.A. 99-906, eff. 6-1-17.)
 
2    (220 ILCS 5/16-108.18 new)
3    Sec. 16-108.18. Performance-based ratemaking.
4    (a) The General Assembly finds:
5        (1) That improving the alignment of utility customer
6    and company interests is critical to ensuring equity,
7    rapid growth of distributed energy resources, electric
8    vehicles, and other new technologies that substantially
9    change the makeup of the grid and protect Illinois
10    residents and businesses from potential economic and
11    environmental harm from the State's energy systems.
12        (2) There is urgency around addressing increasing
13    threats from climate change and assisting communities that
14    have borne disproportionate impacts from climate change,
15    including air pollution, greenhouse gas emissions, and
16    energy burdens. Addressing this problem requires changes
17    to the business model under which utilities in Illinois
18    have traditionally functioned.
19        (3) Providing targeted incentives to support change
20    through a new performance-based structure to enhance
21    ratemaking is intended to enable alignment of utility,
22    customer, community, and environmental goals.
23        (4) Though Illinois has taken some measures to move
24    utilities to performance-based ratemaking through the
25    establishment of performance incentives and a

 

 

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1    performance-based formula rate under the Energy
2    Infrastructure Modernization Act, these measures have not
3    been sufficiently transformative in urgently moving
4    electric utilities toward the State's ambitious energy
5    policy goals: protecting a healthy environment and
6    climate, improving public health, and creating quality
7    jobs and economic opportunities, including wealth
8    building, especially in economically disadvantaged
9    communities and communities of color.
10        (5) These measures were not developed through a
11    process to understand first what performance measures and
12    penalties would help drive the sought-after behavior by
13    the utilities.
14        (6) While the General Assembly has not made a finding
15    that the spending related to the Energy Infrastructure and
16    Modernization Act and its performance metrics was not
17    reasonable, it is important to address concerns that these
18    measures may have resulted in excess utility spending and
19    guaranteed profits without meaningful improvements in
20    customer experience, rate affordability, or equity.
21        (7) Discussions of performance incentive mechanisms
22    must always take into account the affordability of
23    customer rates and bills for all customers, including
24    low-income customers.
25        (8) The General Assembly therefore directs the
26    Illinois Commerce Commission to complete a transition that

 

 

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1    includes a comprehensive performance-based regulation
2    framework for electric utilities serving more than 500,000
3    customers. The breadth of this framework should revise
4    existing utility regulations to position Illinois electric
5    utilities to effectively and efficiently achieve current
6    and anticipated future energy needs of this State, while
7    ensuring affordability for consumers.
8    (b) As used in this Section:
9    "Commission" means the Illinois Commerce Commission.
10    "Demand response" means measures that decrease peak
11electricity demand or shift demand from peak to off-peak
12periods.
13    "Distributed energy resources" or "DER" means a wide range
14of technologies that are connected to the grid including those
15that are located on the customer side of the customer's
16electric meter and can provide value to the distribution
17system, including, but not limited to, distributed generation,
18energy storage, electric vehicles, and demand response
19technologies.
20    "Economically disadvantaged communities" means areas of
21one or more census tracts where average household income does
22not exceed 80% of area median income.
23    "Environmental justice communities" means the definition
24of that term as used and as may be updated in the long-term
25renewable resources procurement plan by the Illinois Power
26Agency and its Program Administrator in the Illinois Solar for

 

 

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1All Program.
2    "Equity investment eligible community" means the
3geographic areas throughout Illinois which would most benefit
4from equitable investments by the State designed to combat
5discrimination. Specifically, the equity investment eligible
6communities shall be defined as the following areas:
7        (1) R3 Areas as established pursuant to Section 10-40
8    of the Cannabis Regulation and Tax Act, where residents
9    have historically been excluded from economic
10    opportunities, including opportunities in the energy
11    sector; and
12        (2) Environmental justice communities, as defined by
13    the Illinois Power Agency pursuant to the Illinois Power
14    Agency Act, where residents have historically been subject
15    to disproportionate burdens of pollution, including
16    pollution from the energy sector.
17    "Performance incentive mechanism" means an instrument by
18which utility performance is incentivized, which could include
19a monetary performance incentive.
20    "Performance metric" means a manner of measurement for a
21particular utility activity.
22    (c) Through coordinated, comprehensive system planning,
23ratemaking, and performance incentives, the performance-based
24ratemaking framework should be designed to accomplish the
25following objectives:
26        (1) maintain and improve service reliability and

 

 

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1    safety, including and particularly in environmental
2    justice, low-income and equity investment eligible
3    communities;
4        (2) decarbonize utility systems at a pace that meets
5    or exceeds State climate goals, while also ensuring the
6    affordability of rates for all customers, including
7    low-income customers;
8        (3) direct electric utilities to make cost-effective
9    investments that support achievement of Illinois' clean
10    energy policies, including, at a minimum, investments
11    designed to integrate distributed energy resources, comply
12    with critical infrastructure protection standards, plans,
13    and industry best practices, and support and take
14    advantage of potential benefits from the electric vehicle
15    charging and other electrification, while mitigating the
16    impacts;
17        (4) choose cost-effective assets and services, whether
18    utility-supplied or through third-party contracting,
19    considering both economic and environmental costs and the
20    effects on utility rates, to deliver high-quality service
21    to customers at least cost;
22        (5) maintain the affordability of electric delivery
23    services for all customers, including low-income
24    customers;
25        (6) maintain and grow a diverse workforce, diverse
26    supplier procurement base and, for relevant programs,

 

 

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1    diverse approved-vendor pools, including increased
2    opportunities for minority-owned, female-owned,
3    veteran-owned, and disability-owned business enterprises;
4        (7) improve customer service performance and
5    engagement;
6        (8) address the particular burdens faced by consumers
7    in environmental justice and equity investment eligible
8    communities, including shareholder, consumer, and publicly
9    funded bill payment assistance and credit and collection
10    policies, and ensure equitable disconnections, late fees,
11    or arrearages as a result of utility credit and collection
12    practices, which may include consideration of impact by
13    zip code; and
14        (9) implement or otherwise enhance current supplier
15    diversity programs to increase diverse contractor
16    participation in professional services, subcontracting,
17    and prime contracting opportunities with programs that
18    address barriers to access. Supplier diversity programs
19    shall address specific barriers related to RFP and
20    contract access, access to capital, information technology
21    and cyber security access and costs, administrative
22    burdens, and quality control with specific metrics,
23    outcomes, and demographic data reported.
24    (d) Multi-Year Rate Plan.
25        (1) If an electric utility had a performance-based
26    formula rate in effect under Section 16-108.5 as of

 

 

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1    December 31, 2020, then the utility may file a petition
2    proposing tariffs implementing a 4-year Multi-Year Rate
3    Plan as provided in this Section no later than, January
4    20, 2023, for delivery service rates to be effective for
5    the billing periods January 1, 2024 through December 31,
6    2027. The Commission shall issue an order approving or
7    approving as modified the utility's plan no later than
8    December 20, 2023. The term "Multi-Year Rate Plan" refers
9    to a plan establishing the base rates the utility shall
10    charge for each delivery year of the 4-year period to be
11    covered by the plan, which shall be subject to
12    modification only as expressly allowed in this Section.
13        (2) A utility proposing a Multi-Year Rate Plan shall
14    provide a 4-year investment plan and a description of the
15    utility's major planned investments, including, at a
16    minimum, all investments of $2,000,000 or greater over the
17    plan period for an electric utility that serves more than
18    3,000,000 retail customers in the State or $500,000 for an
19    electric utility that serves less than 3,000,000 retail
20    customers in the State but more than 500,000 retail
21    customers in the State. The 4-year investment plan must be
22    consistent with the Multi-Year Integrated Grid Plan
23    described in Section 16-105.17 of this Act. The investment
24    plan shall provide sufficiently detailed information, as
25    required by the Commission, including, at a minimum, a
26    description of each investment, the location of the

 

 

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1    investment, and an explanation of the need for and benefit
2    of such an investment to the extent known.
3        (3) The Multi-Year Rate Plan shall be implemented
4    through a tariff filed with the Commission consistent with
5    the provisions of this paragraph (3) that shall apply to
6    all delivery service customers. The Commission shall
7    initiate and conduct an investigation of the tariff in a
8    manner consistent with the provisions of this paragraph
9    (3) and the provisions of Article IX of this Act, to the
10    extent they do not conflict with this paragraph (3). The
11    Multi-Year Rate Plan approved by the Commission shall do
12    the following:
13            (A) Provide for the recovery of the utility's
14        forecasted rate base, based on the 4-year investment
15        plan and the utility's Integrated Grid Plan. The
16        forecasted rate base must include the utility's
17        planned capital investments, with rates based on
18        average annual plant investment, and
19        investment-related costs, including income tax
20        impacts, depreciation, and ratemaking adjustments and
21        costs that are prudently incurred and reasonable in
22        amount consistent with Commission practice and law.
23        The process used to develop the forecasts must be
24        iterative, rigorous, and lead to forecasts that
25        reasonably represent the utility's investments during
26        the forecasted period and ensure that the investments

 

 

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1        are projected to be used and useful during the annual
2        investment period and least cost, consistent with the
3        provisions of Articles VIII and IX of this Act.
4            (B) The cost of equity shall be approved by the
5        Commission consistent with Commission practice and
6        law.
7            (C) The revenue requirement shall reflect the
8        utility's actual capital structure for the applicable
9        calendar year. A year-end capital structure that
10        includes a common equity ratio of up to and including
11        50% of the total capital structure shall be deemed
12        prudent and reasonable. A higher common equity ratio
13        must be specifically approved by the Commission.
14            (E) Provide for recovery of prudent and reasonable
15        projected operating expenses, giving effect to
16        ratemaking adjustments, consistent with Commission
17        practice and law under Article IX of this Act.
18        Operating expenses for years after the first year of
19        the Multi-Year Rate Plan may be estimated by the use of
20        known and measurable changes, expense reductions
21        associated with planned capital investments as
22        appropriate, and reasonable and appropriate
23        escalators, indices, or other metrics.
24            (F) Amortize the amount of unprotected
25        property-related excess accumulated deferred income
26        taxes in rates as of January 1, 2023 over a period

 

 

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1        ending December 31, 2027, unless otherwise required to
2        amortize the excess deferred income tax pursuant to
3        Section 16-108.21 of this Act.
4            (G) Allow recovery of incentive compensation
5        expense that is based on the achievement of
6        operational metrics, including metrics related to
7        budget controls, outage duration and frequency,
8        safety, customer service, efficiency and productivity,
9        environmental compliance and attainment of
10        affordability and environmental goals, and other goals
11        and metrics approved by the Commission. Incentive
12        compensation expense that is based on net income or an
13        affiliate's earnings per share shall not be
14        recoverable.
15            (H) To the maximum extent practicable, align the
16        4-year investment plan and annual capital budgets with
17        the electric utility's Multi-Year Integrated Grid
18        Plan.
19        (4) The Commission shall establish annual rates for
20    each year of the Multi-Year Rate Plan that accurately
21    reflect and are based only upon the utility's reasonable
22    and prudent costs of service over the term of the plan,
23    including the effect of all ratemaking adjustments
24    consistent with Commission practice and law as determined
25    by the Commission, provided that the costs are not being
26    recovered elsewhere in rates. Tariff riders authorized by

 

 

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1    the Commission may continue outside of a plan authorized
2    under this Section to the extent such costs are not
3    recovered elsewhere in rates. For the first multi-year
4    rate plan, the burden of proof shall be on the electric
5    utility to establish the prudence of investments and
6    expenditures and to establish that such investments
7    consistent with and reasonably necessary to meet the
8    requirements of the utility's first approved Multi-Year
9    Integrated Grid Plan described in Section 16-105.17 of
10    this Act. For subsequent Multi-Year Rate Plans, the burden
11    of proof shall be on the electric utility to establish the
12    prudence of investments and expenditures and to establish
13    that such investments are consistent with and reasonably
14    necessary to meet the requirements of the utility's most
15    recently approved Multi-Year Integrated Grid Plan
16    described in Section 16-105.17 of this Act. The sole fact
17    that a cost differs from that incurred in a prior period or
18    that an investment is different from that described in the
19    Multi-Year Integrated Grid Plan shall not imply the
20    imprudence or unreasonableness of that cost or investment.
21    The sole fact that an investment is the same or similar to
22    that described in the Multi-Year Integrated Grid Plan
23    shall not imply prudence and reasonableness of that
24    investment.
25        (5) To facilitate public transparency, all materials,
26    data, testimony, and schedules shall be provided to the

 

 

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1    Commission in an editable, machine-readable electronic
2    format including .doc, .docx, .xls, .xlsx, and similar
3    file formats, but not including .pdf or .exif. Should
4    utilities designate any materials confidential, they shall
5    have an affirmative duty to explain why the particular
6    information is marked confidential. In determining
7    prudence and reasonableness of rates, the Commission shall
8    make its determination based upon the record, including
9    each public comment filed or provided orally at open
10    meetings consistent with the Commission's rules and
11    practices.
12        (6) The Commission may, by order, establish terms,
13    conditions, and procedures for submitting and approving a
14    Multi-Year Rate Plan necessary to implement this Section
15    and ensure that rates remain just and reasonable during
16    the course of the plan, including terms and procedures for
17    rate adjustment.
18        (7) An electric utility that files a tariff pursuant
19    to paragraph (3) of this subsection (e) must submit a
20    one-time $300,000 filing fee at the time the Chief Clerk
21    of the Commission accepts the filing, which shall be a
22    recoverable expense.
23        (8) An electric utility operating under a Multi-Year
24    Rate Plan shall file a new Multi-Year Rate Plan at least
25    300 days prior to the end of the initial Multi-Year Rate
26    Plan unless it elects to file a general rate case pursuant

 

 

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1    to paragraph (9), and every 4 years thereafter, with a
2    rate-effective date of the proposed tariffs such that,
3    after the Commission suspension period, the rates would
4    take effect immediately at the close of the final year of
5    the initial Multi-Year Rate Plan. In subsequent Multi-Year
6    Rate Plans, as in the initial plans, utilities and
7    stakeholders may propose additional metrics that achieve
8    the outcomes described in paragraph (2) of subsection (f)
9    of this Section.
10        (9) Election of Rate Case.
11            (A) On or before the date prescribed by
12        subparagraph (B) of paragraph (9) of this Section,
13        electric utilities that serve more than 500,000 retail
14        customers in the State shall file either a general
15        rate case under Section 9-201 of this Act, or a
16        Multi-Year Rate Plan, as set forth in paragraph (1) of
17        this subsection (d).
18            (B) Electric utilities described in subparagraph
19        (A) of paragraph (9) of this Section shall file their
20        initial general rate case or Multi-Year Rate Plan, as
21        applicable, with the Commission no later than January
22        20, 2023.
23            (C) Notwithstanding which rate filing option an
24        electric utility elects to file on the date prescribed
25        by subparagraph (B) of paragraph (9) of this Section,
26        the electric utility shall be subject to the

 

 

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1        Multi-year Integrated Plan filing requirements.
2            (D) Following its initial rate filing pursuant to
3        paragraph (2), an electric utility subject to the
4        requirements of this Section shall thereafter be
5        permitted to elect a different rate filing option
6        consistent with any filing intervals established for a
7        general rate case or Multi-Year Rate Plan, as follows:
8                (i) An electric utility that initially elected
9            to file a Multi-Year Rate Plan and thereafter
10            elects to transition to a general rate case may do
11            so upon completion of the 4-year Multi-Year Rate
12            Plan by filing a general rate case at the same time
13            that the utility would have filed its subsequent
14            Multi-Year Rate Plan, as specified in paragraph
15            (8) of this subsection (d). Notwithstanding this
16            election, the annual adjustment of the final year
17            of the Multi-Year Rate Plan shall proceed as
18            specified in paragraph (6) of subsection (f).
19                (ii) An electric utility that initially
20            elected to a file general rate case and thereafter
21            elects to transition to a Multi-Year Rate Plan may
22            do so only at the 4-year filing intervals
23            identified by paragraph (8) of this subsection
24            (d).
25        (10) The Commission shall approve tariffs establishing
26    rate design for all delivery service customers unless the

 

 

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1    electric utility makes the election specified in Section
2    16-105.5, in which case the rate design shall be subject
3    to the provisions of that Section.
4        (11) The Commission shall establish requirements for
5    annual performance evaluation reports to be submitted
6    annually for performance metrics. Such reports shall
7    include, but not be limited to, a description of the
8    utility's performance under each metric and an
9    identification of any extraordinary events that adversely
10    affected the utility's performance.
11        (12) For the first Multi-Year Rate Plan, the
12    Commission shall consolidate its investigation with the
13    proceeding under Section 16-105.17 to establish the
14    Multi-Year Integrated Grid Plan no later than 45 days
15    after plan filing.
16        (13) Where a rate change under a Multi-Year Rate Plan
17    will result in a rate increase, an electric utility may
18    propose a rate phase-in plan that the Commission shall
19    approve with or without modification or deny in its final
20    order approving the new delivery services rates. A
21    proposed rate phase-in plan under this paragraph (13) must
22    allow the new delivery services rates to be implemented in
23    no more than 2 steps, as follows: in the first step, at
24    least 50% of the approved rate increase must be reflected
25    in rates, and, in the second step, 100% of the rate
26    increase must be reflected in rates. The second step's

 

 

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1    rates must take effect no later than 12 months after the
2    first step's rates were placed into effect. The portion of
3    the approved rate increase not implemented in the first
4    step shall be recorded on the electric utility's books as
5    a regulatory asset, and shall accrue carrying costs to
6    ensure that the utility does not recover more or less than
7    it otherwise would because of the deferral. This portion
8    shall be recovered, with such carrying costs at the
9    weighted average cost of capital, through a surcharge
10    applied to retail customer bills that (i) begins no later
11    than 12 months after the date on which the second step's
12    rates went into effect and (ii) is applied over a period
13    not to exceed 24 months. Nothing in this paragraph is
14    intended to limit the Commission's authority to mitigate
15    the impact of rates caused by rate plans, or any other
16    instance on a revenue-neutral basis; nor shall it mitigate
17    or a utility's ability to make proposals to mitigate the
18    impact of rates. When a deferral, or similar method, is
19    used to mitigate the impact of rates, the utility should
20    be allowed to recover carrying costs.
21        (14) Notwithstanding the provisions of Section (13),
22    the Commission may, on its own initiative, take
23    revenue-neutral measures to relieve the impact of rate
24    increases on customers. Such initiatives may be taken by
25    the Commission in the first Multi-Year Rate Plan,
26    subsequent multi-year plans, or in other instances

 

 

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1    described in this Act.
2        (15) Whenever during the pendency of a Multi-year Rate
3    Plan, an electric utility subject to this Section becomes
4    aware that, due to circumstances beyond its control,
5    prudent operating practices will require the utility to
6    make adjustments to the Multi-Year Rate Plan, the electric
7    utility may file a petition with the Commission requesting
8    modification of the approved annual revenue requirements
9    included in the Multi-Year Rate Plan. The electric utility
10    must support its request with evidence demonstrating why a
11    modification is necessary, due to circumstances beyond the
12    utility's control, to follow prudent operating practices
13    and must set forth the changes to each annual revenue
14    requirement to be approved, and the basis for any changes
15    in anticipated operating expenses or capital investment
16    levels. The utility shall affirmatively address the impact
17    of the changes on the Multi-Year Integrated Grid Plan and
18    Multi-Year Rate Plan originally submitted and approved by
19    the Commission. Any interested party may file an objection
20    to the changes proposed, or offer alternatives to the
21    utility's proposal, as supported by testimony and
22    evidence. After notice and hearing, the Commission shall
23    issue a final order regarding the electric utility's
24    request no later than 180 days after the filing of the
25    petition.
26    (e) Performance incentive mechanisms.

 

 

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1        (1) The electric industry is undergoing rapid
2    transformation, including fundamental changes in how
3    electricity is generated, procured, and delivered and how
4    customers are choosing to participate in the supply and
5    delivery of electricity to and from the electric grid.
6    Building upon the State's goals to increase the
7    procurement of electricity from renewable energy
8    resources, including distributed generation and storage
9    devices, the General Assembly finds that electric
10    utilities should make cost-effective investments that
11    support moving forward on Illinois' clean energy policies.
12    It is therefore in the State's interest for the Commission
13    to establish performance incentive mechanisms in order to
14    better tie utility revenues to performance and customer
15    benefits, accelerate progress on Illinois energy and other
16    goals, ensure equity and affordability of rates for all
17    customers, including low-income customers, and hold
18    utilities publicly accountable.
19        (2) The Commission shall approve, based on the
20    substantial evidence proffered in the proceeding initiated
21    pursuant to this subsection performance metrics that, to
22    the extent practicable and achievable by the electric
23    utility, encourage cost-effective, equitable utility
24    achievement of the outcomes described in this subsection
25    (e) while ensuring no degradation in the significant
26    performance improvement achieved through previously

 

 

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1    established performance metrics. For each electric
2    utility, the Commission shall approve metrics designed to
3    achieve incremental improvements over baseline performance
4    values and targets, over a performance period of up to 10
5    years, and no less than 4 years.
6            (A) The Commission shall approve no more than 8
7        metrics, with at least one metric from each of the
8        categories below, for each electric utility, from
9        subparagraphs (i) through (vi) of this subsection (A).
10        Upon a utility request, the Commission may approve the
11        use of a specific, measurable, and achievable tracking
12        metric described in paragraph (3) of subsection (e) as
13        a performance metric pursuant to paragraph (2) of
14        subsection (e).
15                (i) Metrics designed to ensure the utility
16            maintains and improves the high standards of both
17            overall and locational reliability and resiliency,
18            and makes improvements in power quality, including
19            and particularly in environmental justice and
20            equity investment eligible communities.
21                (ii) Peak load reductions attributable to
22            demand response programs.
23                (iii) Supplier diversity expansion, including
24            diverse contractor participation in professional
25            services, subcontracting, and prime contracting
26            opportunities, development of programs that

 

 

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1            address the barriers to access, aligning
2            demographics of contractors to the demographics in
3            the utility's service territory, establish
4            long-term mentoring relationships that develop and
5            remove barriers to access for diverse and
6            underserved contractors. The utilities shall
7            provide solutions, resources, and tools to address
8            complex barriers of entry related to costly and
9            time-intensive cyber security requirements,
10            increasingly complex information technology
11            requirements, insurance barriers, service provider
12            sign-up process barriers, administrative process
13            barriers, and other barriers that inhibit access
14            to RFPs and contracts. For programs with contracts
15            over $1,000,000, winning bidders must demonstrate
16            a subcontractor development or mentoring
17            relationship with at least one of their diverse
18            subcontracting partners for a core component of
19            the scope of the project. The mentoring time and
20            cost shall be taken into account in the creation
21            of RFP and shall include a structured and measured
22            plan by the prime contractor to increase the
23            capabilities of the subcontractor in their
24            proposed scope. The metric shall include reporting
25            on all supplier diversity programs by goals,
26            program results, demographics and geography, with

 

 

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1            separate reporting by category of minority-owned,
2            female-owned, veteran-owned, and disability-owned
3            business enterprise metrics. The report shall
4            include resources and expenses committed to the
5            programs and conversion rates of new diverse
6            utility contractors.
7                (iv) Achieve affordable customer delivery
8            service costs, with particular emphasis on keeping
9            the bills of lower-income households, households
10            in equity investment eligible communities, and
11            household in environmental justice communities
12            within a manageable portion of their income and
13            adopting credit and collection policies that
14            reduce disconnections for these households
15            specifically and for customers overall to ensure
16            equitable disconnections, late fees, or arrearages
17            as a result of utility credit and collection
18            practices, which may include consideration of
19            impact by zip code.
20                (v) Metrics designed around the utility's
21            timeliness to customer requests for
22            interconnection in key milestone areas, such as:
23            initial response, supplemental review, and system
24            feasibility study; improved average service
25            reliability index for those customers that have
26            interconnected a distributed renewable energy

 

 

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1            generation device to the utility's distribution
2            system and are lawfully taking service under an
3            applicable tariff; offering a variety of
4            affordable rate options, including demand
5            response, time of use rates for delivery and
6            supply, real-time pricing rates for supply;
7            comprehensive and predictable net metering, and
8            maximizing the benefits of grid modernization and
9            clean energy for ratepayers; and improving
10            customer access to utility system information
11            according to consumer demand and interest.
12                (vi) Metrics designed to measure the utility's
13            customer service performance, which may include
14            the average length of time to answer a customer's
15            call by a customer service representative, the
16            abandoned call rate and the relative ranking of
17            the electric utility, by a reputable third-party
18            organization, in customer service satisfaction
19            when compared to other similar electric utilities
20            in the Midwest region.
21            (B) Performance metrics shall include a
22        description of the metric, a calculation method, a
23        data collection method, annual performance targets,
24        and any incentives or penalties for the utility's
25        achievement of, or failure to achieve, their
26        performance targets, provided that the total amount of

 

 

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1        potential incentives and penalties shall be
2        symmetrical. Incentives shall be rewards or penalties
3        or both, reflected as basis points added to, or
4        subtracted from, the utility's cost of equity. The
5        metrics and incentives shall apply for the entire time
6        period covered by a Multi-Year Rate Plan. The total
7        for all metrics shall be equal to 40 basis points,
8        however, the Commission may adjust the basis points
9        upward or downward by up to 20 basis points for any
10        given Multi-Year Rate Plan, as appropriate, but in no
11        event may the total exceed 60 basis points or fall
12        below 20 basis points.
13            (C) Metrics related to reliability shall be
14        implemented to ensure equitable benefits to
15        environmental justice and equity investment eligible
16        communities, as defined in this Act.
17            (D) The Commission shall approve performance
18        metrics that are reasonably within control of the
19        utility to achieve. The Commission also shall not
20        approve a metric that is solely expected to have the
21        effect of reducing the workforce. Performance metrics
22        should measure outcomes and actual, rather than
23        projected, results where possible. Nothing in this
24        paragraph is intended to require that different
25        electric utilities must be subject to the same
26        metrics, goals, or incentives.

 

 

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1            (E) Increases or enhancements to an existing
2        performance goal or target shall be considered in
3        light of other metrics, cost-effectiveness, and other
4        factors the Commission deems appropriate. Performance
5        metrics shall include one year of tracking data
6        collected in a consistent manner, verifiable by an
7        independent evaluator in order to establish a baseline
8        and measure outcomes and actual results against
9        projections where possible.
10            (F) For the purpose of determining reasonable
11        performance metrics and related incentives, the
12        Commission shall develop a methodology to calculate
13        net benefits that includes customer and societal costs
14        and benefits and quantifies the effect on delivery
15        rates. In determining the appropriate level of a
16        performance incentive, the Commission shall consider:
17        the extent to which the amount is likely to encourage
18        the utility to achieve the performance target in the
19        least cost manner; the value of benefits to customers,
20        the grid, public health and safety, and the
21        environment from achievement of the performance
22        target, including in particular benefits to equity
23        investment eligible community; the affordability of
24        customer's electric bills, including low-income
25        customers, the utility's revenue requirement, the
26        promotion of renewable and distributed energy, and

 

 

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1        other such factors that the Commission deems
2        appropriate. The consideration of these factors shall
3        result in an incentive level that ensures benefits
4        exceed costs for customers.
5            (G) Achievement of performance metrics are based
6        on the assumptions that the utility will adopt or
7        implement the technology and equipment, and make the
8        investments to the extent reasonably necessary to
9        achieve the goal. If the electric utility is unable to
10        meet the performance metrics as a result of
11        extraordinary circumstances outside of its control,
12        including but not limited to government-declared
13        emergencies, then the utility shall be permitted to
14        file a petition with the Commission requesting that
15        the utility be excused from compliance with the
16        applicable performance goal or goals and the
17        associated financial incentives and penalties. The
18        burden of proof shall be on the utility, consistent
19        with Article IX, and the utility's petition shall be
20        supported by substantial evidence. The Commission
21        shall, after notice and hearing, enter its order
22        approving or denying, in whole or in part, the
23        utility's petition based on the extent to which the
24        utility demonstrated that its achievement of the
25        affected metrics and performance goals was hindered by
26        extraordinary circumstances outside of the utility's

 

 

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1        control.
2        (3) The Commission shall approve reasonable and
3    appropriate tracking metrics to collect and monitor data
4    for the purpose of measuring and reporting utility
5    performance and for establishing future performance
6    metrics. These additional tracking metrics shall include
7    at least one metric from each of the following categories
8    of performance:
9            (A) Minimize emissions of greenhouse gases and
10        other air pollutants that harm human health,
11        particularly in environmental justice and equity
12        investment eligible communities, through minimizing
13        total emissions by accelerating electrification of
14        transportation, buildings and industries where such
15        electrification results in net reductions, across all
16        fuels and over the life of electrification measures,
17        of greenhouse gases and other pollutants, taking into
18        consideration the fuel mix used to produce electricity
19        at the relevant hour and the effect of accelerating
20        electrification on electricity delivery services
21        rates, supply prices and peak demand, provided the
22        revenues the utility receives from accelerating
23        electrification of transportation, buildings and
24        industries exceed the costs.
25            (B) Enhance the grid's flexibility to adapt to
26        increased deployment of nondispatchable resources,

 

 

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1        improve the ability and performance of the grid on
2        load balancing, and offer a variety of rate plans to
3        match consumer consumption patterns and lower consumer
4        bills for electricity delivery and supply.
5            (C) Ensure rates reflect cost savings attributable
6        to grid modernization and utilize distributed energy
7        resources that allow the utility to defer or forgo
8        traditional grid investments that would otherwise be
9        required to provide safe and reliable service.
10            (D) Metrics designed to create and sustain
11        full-time-equivalent jobs and opportunities for all
12        segments of the population and workforce, including
13        minority-owned businesses, women-owned businesses,
14        veteran-owned businesses, and businesses owned by a
15        person or persons with a disability, and that do not,
16        consistent with State and federal law, discriminate
17        based on race or socioeconomic status as a result of
18        this amendatory Act of the 102nd General Assembly.
19            (E) Maximize and prioritize the allocation of grid
20        planning benefits to environmental justice and
21        economically disadvantaged customers and communities,
22        such that all metrics provide equitable benefits
23        across the utility's service territory and maintain
24        and improve utility customers' access to uninterrupted
25        utility services.
26        (4) The Commission may establish new tracking and

 

 

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1    performance metrics in future Multi-Year Rate Plans to
2    further measure achievement of the outcomes set forth in
3    paragraph (2) of subsection (f) of this Section and the
4    other goals and requirements of this Section.
5        (5) The Commission shall also evaluate metrics that
6    were established in prior Multi-Year Rate Plans to
7    determine if there has been an unanticipated material
8    change in circumstances such that adjustments are required
9    to improve the likelihood of the outcomes described in
10    paragraph (2) of subsection (f). For metrics that were
11    established in prior Multi-Year Rate Plan proceedings and
12    that the Commission elects to continue, the design of
13    these metrics, including the goals of tracking metrics and
14    the targets and incentive levels and structures of
15    performance metrics, may be adjusted pursuant to the
16    requirements in this Section. The Commission may also
17    change, adjust or phase out tracking and performance
18    metrics that were established in prior Multi-Year Rate
19    Plan proceedings if these metrics no longer meet the
20    requirements of this Section or if they are rendered
21    obsolete by the changing needs and technology of an
22    evolving grid. Additionally, performance metrics that no
23    longer require an incentive to create improved utility
24    performance may become tracking metrics in a Multi-Year
25    Rate Plan proceeding.
26        (6) The Commission shall initiate a workshop process

 

 

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1    no later than August 1, 2021, or 15 days after the
2    effective date of this amendatory Act of the 102nd General
3    Assembly, whichever is later, for the purpose of
4    facilitating the development of metrics for each utility.
5    The workshop shall be coordinated by the staff of the
6    Commission, or a facilitator retained by staff, and shall
7    be organized and facilitated in a manner that encourages
8    representation from diverse stakeholders and ensures
9    equitable opportunities for participation, without
10    requiring formal intervention or representation by an
11    attorney. Working with staff of the Commission the
12    facilitator may conduct a combination of workshops
13    specific to a utility or applicable to multiple utilities
14    where content and stakeholders are substantially similar.
15    The workshop process shall conclude no later than October
16    31, 2021. Following the workshop, the staff of the
17    Commission, or the facilitator retained by the Staff,
18    shall prepare and submit a report to the Commission that
19    identifies the participants in the process, the metrics
20    proposed during the process, any material issues that
21    remained unresolved at the conclusions of such process,
22    and any recommendations for workshop process improvements.
23    Any workshop participant may file comments and reply
24    comments in response to the Staff report.
25            (A) No later than January, 20, 2022, each electric
26        utility that intends to file a petition pursuant to

 

 

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1        subsection (b) of this Section shall file a petition
2        with the Commission seeking approval of its
3        performance metrics, which shall include for each
4        metric, at a minimum, (i) a detailed description, (ii)
5        the calculation of the baseline, (iii) the performance
6        period and overall performance goal, provided that the
7        performance period shall not commence prior to January
8        1, 2024, (iv) each annual performance goal, (v) the
9        performance adjustment, which shall be a symmetrical
10        basis point increase or decrease to the utility's cost
11        of equity based on the extent to which the utility
12        achieved the annual performance goal, and (vi) the new
13        or modified tariff mechanism that will apply the
14        performance adjustments. The Commission shall issue
15        its order approving, or approving with modification,
16        the utility's proposed performance metrics no later
17        than September 30, 2022.
18            (B) No later than August 1, 2025, the Commission
19        shall initiate a workshop process that conforms to the
20        workshop purpose and requirements of this paragraph
21        (6) of this Section to the extent they do not conflict.
22        The workshop process shall conclude no later than
23        October 31, 2025, and the staff of the Commission, or
24        the facilitator retained by the Staff, shall prepare
25        and submit a report consistent with the requirements
26        described in this paragraph (6) of this Section. No

 

 

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1        later than January 20, 2026, each electric utility
2        subject to the requirements of this Section shall file
3        a petition the reflects, and is consistent with, the
4        components required in this paragraph (6) of this
5        Section, and the Commission shall issue its order
6        approving, or approving with modification, the
7        utility's proposed performance metrics no later than
8        September 30, 2026.
9    (f) On May 1 of each year, following the approval of the
10first Multi-Year Rate Plan and its initial year, the
11Commission shall open an annual performance evaluation
12proceeding to evaluate the utilities' performance on their
13metric targets during the year just completed, as well as the
14appropriate Annual Adjustment as defined in paragraph (6). The
15Commission shall determine the performance and annual
16adjustments to be applied through a surcharge in the following
17calendar year.
18        (1) On February 15 of each year, prior to the annual
19    performance evaluation proceeding, each utility shall file
20    a performance evaluation report with the Commission that
21    includes a description of and all data supporting how the
22    utility performed under each performance metric and an
23    identification of any extraordinary events that adversely
24    impacted the utility's performance.
25        (2) The metrics approved under this Section are based
26    on the assumptions that the utility may fully implement

 

 

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1    the technology and equipment, and make the investments,
2    required to achieve the metrics and performance goals. If
3    the utility is unable to meet the metrics and performance
4    goals because it was hindered by unanticipated technology
5    or equipment implementation delays, government-declared
6    emergencies, or other investment impediments, then the
7    utility shall be permitted to file a petition with the
8    Commission on or before the date that its report is due
9    pursuant to paragraph (1) of this subsection (f)
10    requesting that the utility be excused from compliance
11    with the applicable performance goal or goals. The burden
12    of proof shall be on the utility, consistent with Article
13    IX, and the utility's petition shall be supported by
14    substantial evidence. No later than 90 days after the
15    utility files its petition, the Commission shall, after
16    notice and hearing, enter its order approving or denying,
17    in whole or in part, the utility's petition based on the
18    extent to which the utility demonstrated that its
19    achievement of the affected metrics and performance goals
20    was hindered by unanticipated technology or equipment
21    implementation delays, or other investment impediments,
22    that were reasonably outside of the utility's control.
23        (3) The electric utility shall provide for an annual
24    independent evaluation of its performance on metrics. The
25    independent evaluator shall review the utility's
26    assumptions, baselines, targets, calculation

 

 

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1    methodologies, and other relevant information, especially
2    ensuring that the utility's data for establishing
3    baselines matches actual performance, and shall provide a
4    report to the Commission in each annual performance
5    evaluation describing the results. The independent
6    evaluator shall present this report as evidence as a
7    nonparty participant and shall not be represented by the
8    utility's legal counsel. The independent evaluator shall
9    be hired through a competitive bidding process with
10    approval of the contract by the Commission.
11        The Commission shall consider the report of the
12    independent evaluator in determining the utility's
13    achievement of performance targets. Discrepancies between
14    the utility's assumptions, baselines, targets, or
15    calculations and those of the independent evaluator shall
16    be closely scrutinized by the Commission. If the
17    Commission finds that the utility's reported data for any
18    metric or metrics significantly and incorrectly deviates
19    from the data reported by the independent evaluator, then
20    the Commission shall order the utility to revise its data
21    collection and calculation process within 60 days, with
22    specifications where appropriate.
23        (4) The Commission shall, after notice and hearing in
24    the annual performance evaluation proceeding, enter an
25    order approving the utility's performance adjustment based
26    on its achievement of or failure to achieve its

 

 

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1    performance targets no later than December 20 each year.
2    The Commission-approved penalties or incentives shall be
3    applied beginning with the next calendar year.
4        (5) In order to promote the transparency of utility
5    investments during the effective period of a multi-year
6    rate plan, inform the Commission's investigation and
7    adjustment of rates in the annual adjustment process, and
8    to facilitate the participation of stakeholders in the
9    annual adjustment process, an electric utility with an
10    effective Multi-Year Rate Plan shall, within 90 days of
11    the close of each quarter during the Multi-Year Rate Plan
12    period, submit to the Commission a report that summarizes
13    the additions to utility plant that were placed into
14    service during the prior quarter, which for purposes of
15    the report shall be the most recently closed fiscal
16    quarter. The report shall also summarize the utility plant
17    the electric utility projects it will place into service
18    through the end of the calendar year in which the report is
19    filed. The projections, estimates, plans, and
20    forward-looking information that are provided in the
21    reports pursuant to this paragraph (5) are for planning
22    purposes and are intended to be illustrative of the
23    investments that the utility proposes to make as of the
24    time of submittal. Nothing in this paragraph (5)
25    precludes, or is intended to limit, a utility's ability to
26    modify and update its projections, estimates, plans, and

 

 

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1    forward-looking information previously submitted in order
2    to reflect stakeholder input or other new or updated
3    information and analysis, including, but not limited to,
4    changes in specific investment needs, customer electric
5    use patterns, customer applications and preferences, and
6    commercially available equipment and technologies, however
7    the utility shall explain any changes or deviations
8    between the projected investments from the quarterly
9    reports and actual investments in the annual report. The
10    reports submitted pursuant to this subsection are intended
11    to be flexible planning tools, and are expected to evolve
12    as new information becomes available. Within 7 days of
13    receiving a quarterly report, the Commission shall timely
14    make such report available to the public by posting it on
15    the Commission's website. Each quarterly report shall
16    include the following detail:
17            (A) The total dollar value of the additions to
18        utility plant placed in service during the prior
19        quarter;
20            (B) A list of the major investment categories the
21        electric utility used to manage its routine standing
22        operational activities during the prior quarter
23        including the total dollar amount for the work
24        reflected in each investment category in which utility
25        plant in service is equal to or greater than
26        $2,000,000 for an electric utility that serves more

 

 

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1        than 3,000,000 customers in the State or $500,000 for
2        an electric utility that serves less than 3,000,000
3        customers but more than 500,000 customers in the State
4        as of the last day of the quarterly reporting period,
5        as well as a summary description of each investment
6        category;
7            (C) A list of the projects which the electric
8        utility has identified by a unique investment tracking
9        number for utility plant placed in service during the
10        prior quarter for utility plant placed in service with
11        a total dollar value as of the last day of the
12        quarterly reporting period that is equal to or greater
13        than $2,000,000 for an electric utility that serves
14        more than 3,000,000 customers in the State or $500,000
15        for an electric utility that serves less than
16        3,000,000 retail customers but more than $500,000
17        retail customers in the State, as well as a summary of
18        each project;
19            (D) The estimated total dollar value of the
20        additions to utility plant projected to be placed in
21        service through the end of the calendar year in which
22        the report is filed;
23            (E) A list of the major investment categories the
24        electric utility used to manage its routine standing
25        operational activities with utility plant projected to
26        be placed in service through the end of the calendar

 

 

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1        year in which the report is filed, including the total
2        dollar amount for the work reflected in each
3        investment category in which utility plant in service
4        is projected to be equal to or greater than $2,000,000
5        for an electric utility that serves more than
6        3,000,000 customers in the State or $500,000 for an
7        electric utility that serves less than 3,000,000
8        retail customers but more than 500,000 retail
9        customers in the State, as well as a summary
10        description of each investment category; and
11            (F) A list of the projects for which the electric
12        utility has identified by a unique investment tracking
13        number for utility plant projected to be placed in
14        service through the end of the calendar year in which
15        the report is filed with an estimated dollar value
16        that is equal to or greater than $2,000,000 for an
17        electric utility that serves more than 3,000,000
18        customers in the State or $500,000 for an electric
19        utility that serves less than 3,000,000 retails
20        customers but more than $500,000 retail customers in
21        the State, as well as a summary description of each
22        project.
23        (6) As part of the Annual Performance Adjustment, the
24    electric utility shall submit evidence sufficient to
25    support a determination of its actual revenue requirement
26    for the applicable calendar year, consistent with the

 

 

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1    provisions of paragraphs (d) and (f) of this subsection.
2    The electric utility shall bear the burden of
3    demonstrating that its costs were prudent and reasonable,
4    subject to the provisions of paragraph (4) of this
5    subsection (f). The Commission's review of the electric
6    utility's annual adjustment shall be based on the same
7    evidentiary standards, including, but not limited to,
8    those concerning the prudence and reasonableness of the
9    known and measurable costs forecasted to be incurred by
10    the utility, and the used and usefulness of the actual
11    plant investment pursuant to Section 9-211 of this Act,
12    that the Commission applies in a proceeding to review a
13    filing for changes in rates pursuant to Section 9-201 of
14    this Act. The Commission shall determine the prudence and
15    reasonableness of the actual costs incurred by the utility
16    during the applicable calendar year, as well as determine
17    the original cost of plant in service as of the end of the
18    applicable calendar year. The Commission shall then
19    determine the Annual Adjustment, which shall mean the
20    amount by which, the electric utility's actual revenue
21    requirement for the applicable year of the Multi-Year Rate
22    Plan either exceeded, or was exceeded by, the revenue
23    requirement approved by the Commission for such calendar
24    year, plus carrying costs calculated at the weighted
25    average cost of capital approved for the Multi-Year Rate
26    Plan.

 

 

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1        The Commission's determination of the electric
2    utility's actual revenue requirement for the applicable
3    calendar year shall be based on:
4            (A) the Commission-approved used and useful,
5        prudent and reasonable actual costs for the applicable
6        calendar year, which shall be determined pursuant to
7        the following criteria:
8                (i) The overall level of actual costs incurred
9            during the calendar year, provided that the
10            Commission may not allow recovery of actual costs
11            that are more than 105% of the approved revenue
12            requirement calculated as provided in item (ii) of
13            this subparagraph (A), except to the extent the
14            Commission approves a modification of the
15            Multi-Year Rate Plan to permit such recovery.
16                (ii) The calculation of 105% of the revenue
17            requirement required by this subparagraph (A)
18            shall exclude the revenue requirement impacts of
19            the following volatile and fluctuating variables
20            that occurred during the year: (i) storms and
21            weather-related events for which the utility
22            provides sufficient evidence to demonstrate that
23            such expenses were not foreseeable and not in
24            control of the utility; (ii) new business; (iii)
25            changes in interest rates; (iv) changes in taxes;
26            (v) facility relocations; (vi) changes in pension

 

 

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1            or post-retirement benefits costs due to
2            fluctuations in interest rates, market returns or
3            actuarial assumptions; (vii) amortization expenses
4            related to costs; and (viii) changes in the timing
5            of when an expenditure or investment is made such
6            that it is accelerated to occur during the
7            applicable year or deferred to occur in a
8            subsequent year.
9            (B) the year-end rate base;
10            (C) the cost of equity approved in the multi-year
11        rate plan; and
12            (D) the electric utility's actual year-end capital
13        structure, provided that the common equity ratio in
14        such capital structure may not exceed the common
15        equity ratio that was approved by the Commission in
16        the Multi-Year Rate Plan.
17        (2) The Commission's determinations of the prudence
18    and reasonableness of the costs incurred for the
19    applicable year, and of the original cost of plant in
20    service as of the end of the applicable calendar year,
21    shall be final upon entry of the Commission's order and
22    shall not be subject to collateral attack in any other
23    Commission proceeding, case, docket, order, rule, or
24    regulation; however, nothing in this Section shall
25    prohibit a party from petitioning the Commission to rehear
26    or appeal to the courts the order pursuant to the

 

 

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1    provisions of this Act.
2    (g) During the period leading to approval of the first
3Multi-Year Integrated Grid Plan, each electric utility will
4necessarily continue to invest in its distribution grid. Those
5investments will be subject to a determination of prudence and
6reasonableness consistent with Commission practice and law.
7Any failure to conform to the Multi-Year Integrated Grid Plan
8ultimately approved shall not imply imprudence or
9unreasonableness.
10    (h) After calculating the Performance Adjustment and
11Annual Adjustment, the Commission shall order the electric
12utility to collect the amount in excess of the revenue
13requirement from customers, or issue a refund to customers, as
14applicable, to be applied through a surcharge beginning with
15the next calendar year.
16    Electric utilities subject to the requirements of this
17Section shall be permitted to file new or revised tariffs to
18comply with the provisions of, and Commission orders entered
19pursuant to, this Section.
 
20    (220 ILCS 5/16-108.19 new)
21    Sec. 16-108.19. Division of Integrated Distribution
22Planning.
23    (a) The Commission shall establish the Division of
24Integrated Distribution Planning within the Bureau of Public
25Utilities. The Division shall be staffed by no less than 13

 

 

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1professionals, including engineers, rate analysts,
2accountants, policy analysts, utility research and analysis
3analysts, cybersecurity analysts, informational technology
4specialists, and lawyers to review and evaluate Integrated
5Grid Plans, updates to Integrated Grid Plans, audits, and
6other duties as assigned by the Chief of the Public Utilities
7Bureau.
8    (b) The Division of Integrated Distribution Planning shall
9be established by January 1, 2022.
 
10    (220 ILCS 5/16-108.20 new)
11    Sec. 16-108.20. Cost-effectiveness incentive.
12    (a) The General Assembly finds that it is critical to
13maintain this focus on utility bill affordability as the State
14transitions to a clean energy economy. The General Assembly
15accordingly finds that it may be in the public interest to
16incentivize electric utilities to reduce spending where
17practicable and where such reduction will not have an adverse
18impact on the State's clean energy goals; this Act's
19overarching objectives of efficiency, environmental quality,
20reliability, and equity; or the utility's achievement on its
21metrics.
22    (b) In addition to the performance metrics established and
23approved by the Commission pursuant to Section 16-108.18 of
24this Act, the Commission may also determine whether each
25electric utility that serves more than 500,000 retail

 

 

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1customers in the State may also be subject to a performance
2metric that incentivizes the utility to make cost-effective
3choices and stretch to achieve cost savings for public utility
4customers where it can do so without adverse impact (on
5efficiency, environmental quality, reliability or equity).
6    (c) The Commission shall initiate a docket on the subject
7of cost-effective shared savings, and shall make a
8determination if it would be in the public interest and the
9best interest of electric utility customers to establish a
10performance metric that incentivizes utilities to reduce their
11costs while meeting all other performance metrics and
12addressing state goals as found in this Act.
13    (d) At the conclusion of the docket, if the Commission
14determines that such an incentive is in the best interest of
15consumers, the Commission shall have the authority to set a
16specific metric as part of the performance metric process
17pursuant to Section 16-108.18. Such metric shall include a
18determination of the percentage of the shared savings to be
19returned to the customers and to the utility. Such percentage
20shall be set so as to incentivize the utility to make savings,
21while providing substantial benefits to consumers.
 
22    (220 ILCS 5/16-108.21 new)
23    Sec. 16-108.21. Accelerated repayment of excess deferred
24income tax.
25    (a) The General Assembly finds:

 

 

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1        (1) That a portion of each utility's compensation from
2    ratepayers is attributable to reimbursement for federal
3    taxes paid by the utility.
4        (2) Due to the enactment of the 2017 Tax Cut and Jobs
5    Act, the federal income tax rate for corporations was
6    lowered, resulting in excess deferred income tax for
7    distribution utilities in the State that serve more than
8    100,000 customers.
9        (3) In proceedings before the Commission, it was
10    determined that the repayment period to ratepayers by the
11    utilities which serve more than 100,000 customers in this
12    State for this excess deferred income tax would be 39.5
13    years.
14        (4) The COVID-19 pandemic has harmed many customers of
15    all rate classes in the State, and resulted in the
16    Commission adopting a number of measures to provide relief
17    for customers.
18        (5) Electric utilities with greater than 3,000,000
19    customers have sufficient resources to refund excess tax
20    reserve to their ratepayers without experiencing financial
21    hardship.
22        (6) It would be in the interest of the State for the
23    repayment of the excess deferred income tax referenced in
24    Commission Dockets 19-0387 and 20-0393 to be paid back to
25    ratepayers on a timetable greatly accelerated from that
26    set forth in the dockets.

 

 

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1    (b) Notwithstanding the Commission Orders in Dockets
219-0387 and 20-0383, the excess deferred income tax referenced
3in those dockets shall be fully refunded to ratepayers by the
4respective utilities no later than December 31, 2025.
5    (c) The Commission shall initiate a docket to provide for
6the refunding of these excess deferred income taxes to
7ratepayers of the utilities referenced in those dockets, and
8shall set forth any necessary provisions to accomplish the
9reimbursement on the schedule delineated in subsection (b).
 
10    (220 ILCS 5/16-108.25 new)
11    Sec. 16-108.25. Tariff regarding transition in rates. Each
12electric utility that files a Multi-Year Rate Plan pursuant to
13Section 16-108.18 of this Act or a general rate case as
14described in this Act shall also file a tariff that sets forth
15the processes and procedures by which the electric utility
16will transition from its current rates and ratemaking
17mechanism to the new Multi-Year Rate Plan or a general rate
18case and rates that will take effect under that multi-year
19plan. The proposed tariff shall be consistent with the tariff
20approved by the Commission in Docket No. 20-0426 and covers
21the period until the new delivery rates are effective and all
22required processes and procedures described in the tariff have
23been completed.
24    Each electric utility subject to this Section shall file
25its proposed tariff no later than 30 days after the effective

 

 

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1date of this amendatory Act of the 102nd General Assembly, and
2the Commission shall enter its order approving the tariff no
3later than 120 days after it was filed if the Commission finds
4that the proposed tariff is consistent with the tariff
5previously approved in Docket No. 20-0426 for the period until
6the new delivery rates are effective and all required
7processes and procedures described in the tariff have been
8completed. If the Commission does not so find, then the
9Commission shall approve the utility's tariff with those
10modifications that are required to make the proposed tariff
11consistent with the tariff approved in Docket 20-0426 until
12the new delivery rates are effective and all required
13processes and procedures described in the tariff have been
14completed.
15    An electric utility that has a tariff in effect on the
16effective date of this amendatory Act of the 102nd General
17Assembly that provides for the transition from its current
18rates and ratemaking mechanism to new base rates approved
19pursuant to Article IX of this Act, shall file a compliance
20tariff modifying its existing tariff to comply with the
21provisions of this Section. The compliance tariff shall go
22into effect on 45 days' notice.
 
23    (220 ILCS 5/16-108.30 new)
24    Sec. 16-108.30. Energy Transition Assistance Fund.
25    (a) The Energy Transition Assistance Fund is hereby

 

 

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1created as a special fund in the State Treasury. The Energy
2Transition Assistance Fund is authorized to receive moneys
3collected pursuant to this Section. Subject to appropriation,
4the Department of Commerce and Economic Opportunity shall use
5moneys from the Energy Transition Assistance Fund consistent
6with the purposes of this Act.
7    (b) An electric utility serving more than 500,000
8customers in the State shall assess an energy transition
9assistance charge on all its retail customers for the Energy
10Transition Assistance Fund. The utility's total charge shall
11be set based upon the value determined by the Department of
12Commerce and Economic Opportunity pursuant to subsection (d)
13or (e), as applicable, of Section 605-1075 of the Department
14of Commerce and Economic Opportunity Law of the Civil
15Administrative Code of Illinois. For each utility, the charge
16shall be recovered through a single, uniform cents per
17kilowatt-hour charge applicable to all retail customers. For
18each utility, the charge shall not exceed 1% of the amount paid
19per kilowatthour by those customers during the year ending May
2031, 2009.
21    (c) Within 75 days of the effective date of this
22amendatory Act of the 102nd General Assembly, each electric
23utility serving more than 500,000 customers in the State shall
24file with the Illinois Commerce Commission tariffs
25incorporating the energy transition assistance charge in other
26charges stated in such tariffs, which shall become effective

 

 

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1no later than the beginning of the first billing cycle
2following such filing. Each electric utility serving more than
3500,000 customers in the State shall, prior to the beginning
4of each calendar year starting with calendar year 2021, file
5with the Illinois Commerce Commission tariff revisions to
6incorporate annual revisions to the energy transition
7assistance charge as prescribed by the Department of Commerce
8and Economic Opportunity pursuant to Section 605-1075 of the
9Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois so that such revision
11becomes effective no later than the beginning of the first
12billing cycle in each respective year.
13    (d) The energy transition assistance charge shall be
14considered a charge for public utility service.
15    (e) By the 20th day of the month following the month in
16which the charges imposed by this Section were collected, each
17electric utility serving more than 500,000 customers in the
18State shall remit to Department of Revenue all moneys received
19as payment of the energy transition assistance charge on a
20return prescribed and furnished by the Department of Revenue
21showing such information as the Department of Revenue may
22reasonably require. If a customer makes a partial payment, a
23public utility may apply such partial payments first to
24amounts owed to the utility. No customer may be subjected to
25disconnection of his or her utility service for failure to pay
26the energy transition assistance charge.

 

 

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1    If any payment provided for in this subsection exceeds the
2electric utility's liabilities under this Act, as shown on an
3original return, the Department may authorize the electric
4utility to credit such excess payment against liability
5subsequently to be remitted to the Department under this Act,
6in accordance with reasonable rules adopted by the Department.
7    All the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e,
85f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
9of the Retailers' Occupation Tax Act that are not inconsistent
10with this Act apply, as far as practicable, to the charge
11imposed by this Act to the same extent as if those provisions
12were included in this Act. References in the incorporated
13Sections of the Retailers' Occupation Tax Act to retailers, to
14sellers, or to persons engaged in the business of selling
15tangible personal property mean persons required to remit the
16charge imposed under this Act.
17    (f) The Department of Revenue shall deposit into the
18Energy Transition Assistance Fund all moneys remitted to it in
19accordance with this Section.
20    (g) The Department of Revenue may establish such rules as
21it deems necessary to implement this Section.
22    (h) The Department of Commerce and Economic Opportunity
23may establish such rules as it deems necessary to implement
24this Section.
 
25    (220 ILCS 5/16-111.5)

 

 

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1    Sec. 16-111.5. Provisions relating to procurement.
2    (a) An electric utility that on December 31, 2005 served
3at least 100,000 customers in Illinois shall procure power and
4energy for its eligible retail customers in accordance with
5the applicable provisions set forth in Section 1-75 of the
6Illinois Power Agency Act and this Section. Beginning with the
7delivery year commencing on June 1, 2017, such electric
8utility shall also procure zero emission credits from zero
9emission facilities in accordance with the applicable
10provisions set forth in Section 1-75 of the Illinois Power
11Agency Act, and, for years beginning on or after June 1, 2017,
12the utility shall procure renewable energy resources in
13accordance with the applicable provisions set forth in Section
141-75 of the Illinois Power Agency Act and this Section.
15Beginning with the delivery year commencing on June 1, 2022,
16an electric utility serving over 3,000,000 customers shall
17also procure carbon mitigation credits from carbon-free energy
18resources in accordance with the applicable provisions set
19forth in Section 1-75 of the Illinois Power Agency Act and this
20Section. A small multi-jurisdictional electric utility that on
21December 31, 2005 served less than 100,000 customers in
22Illinois may elect to procure power and energy for all or a
23portion of its eligible Illinois retail customers in
24accordance with the applicable provisions set forth in this
25Section and Section 1-75 of the Illinois Power Agency Act.
26This Section shall not apply to a small multi-jurisdictional

 

 

10200HB3666sam001- 878 -LRB102 13525 AMC 28481 a

1utility until such time as a small multi-jurisdictional
2utility requests the Illinois Power Agency to prepare a
3procurement plan for its eligible retail customers. "Eligible
4retail customers" for the purposes of this Section means those
5retail customers that purchase power and energy from the
6electric utility under fixed-price bundled service tariffs,
7other than those retail customers whose service is declared or
8deemed competitive under Section 16-113 and those other
9customer groups specified in this Section, including
10self-generating customers, customers electing hourly pricing,
11or those customers who are otherwise ineligible for
12fixed-price bundled tariff service. For those customers that
13are excluded from the procurement plan's electric supply
14service requirements, and the utility shall procure any supply
15requirements, including capacity, ancillary services, and
16hourly priced energy, in the applicable markets as needed to
17serve those customers, provided that the utility may include
18in its procurement plan load requirements for the load that is
19associated with those retail customers whose service has been
20declared or deemed competitive pursuant to Section 16-113 of
21this Act to the extent that those customers are purchasing
22power and energy during one of the transition periods
23identified in subsection (b) of Section 16-113 of this Act.
24    (b) A procurement plan shall be prepared for each electric
25utility consistent with the applicable requirements of the
26Illinois Power Agency Act and this Section. For purposes of

 

 

10200HB3666sam001- 879 -LRB102 13525 AMC 28481 a

1this Section, Illinois electric utilities that are affiliated
2by virtue of a common parent company are considered to be a
3single electric utility. Small multi-jurisdictional utilities
4may request a procurement plan for a portion of or all of its
5Illinois load. Each procurement plan shall analyze the
6projected balance of supply and demand for those retail
7customers to be included in the plan's electric supply service
8requirements over a 5-year period, with the first planning
9year beginning on June 1 of the year following the year in
10which the plan is filed. The plan shall specifically identify
11the wholesale products to be procured following plan approval,
12and shall follow all the requirements set forth in the Public
13Utilities Act and all applicable State and federal laws,
14statutes, rules, or regulations, as well as Commission orders.
15Nothing in this Section precludes consideration of contracts
16longer than 5 years and related forecast data. Unless
17specified otherwise in this Section, in the procurement plan
18or in the implementing tariff, any procurement occurring in
19accordance with this plan shall be competitively bid through a
20request for proposals process. Approval and implementation of
21the procurement plan shall be subject to review and approval
22by the Commission according to the provisions set forth in
23this Section. A procurement plan shall include each of the
24following components:
25        (1) Hourly load analysis. This analysis shall include:
26            (i) multi-year historical analysis of hourly

 

 

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1        loads;
2            (ii) switching trends and competitive retail
3        market analysis;
4            (iii) known or projected changes to future loads;
5        and
6            (iv) growth forecasts by customer class.
7        (2) Analysis of the impact of any demand side and
8    renewable energy initiatives. This analysis shall include:
9            (i) the impact of demand response programs and
10        energy efficiency programs, both current and
11        projected; for small multi-jurisdictional utilities,
12        the impact of demand response and energy efficiency
13        programs approved pursuant to Section 8-408 of this
14        Act, both current and projected; and
15            (ii) supply side needs that are projected to be
16        offset by purchases of renewable energy resources, if
17        any.
18        (3) A plan for meeting the expected load requirements
19    that will not be met through preexisting contracts. This
20    plan shall include:
21            (i) definitions of the different Illinois retail
22        customer classes for which supply is being purchased;
23            (ii) the proposed mix of demand-response products
24        for which contracts will be executed during the next
25        year. For small multi-jurisdictional electric
26        utilities that on December 31, 2005 served fewer than

 

 

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1        100,000 customers in Illinois, these shall be defined
2        as demand-response products offered in an energy
3        efficiency plan approved pursuant to Section 8-408 of
4        this Act. The cost-effective demand-response measures
5        shall be procured whenever the cost is lower than
6        procuring comparable capacity products, provided that
7        such products shall:
8                (A) be procured by a demand-response provider
9            from those retail customers included in the plan's
10            electric supply service requirements;
11                (B) at least satisfy the demand-response
12            requirements of the regional transmission
13            organization market in which the utility's service
14            territory is located, including, but not limited
15            to, any applicable capacity or dispatch
16            requirements;
17                (C) provide for customers' participation in
18            the stream of benefits produced by the
19            demand-response products;
20                (D) provide for reimbursement by the
21            demand-response provider of the utility for any
22            costs incurred as a result of the failure of the
23            supplier of such products to perform its
24            obligations thereunder; and
25                (E) meet the same credit requirements as apply
26            to suppliers of capacity, in the applicable

 

 

10200HB3666sam001- 882 -LRB102 13525 AMC 28481 a

1            regional transmission organization market;
2            (iii) monthly forecasted system supply
3        requirements, including expected minimum, maximum, and
4        average values for the planning period;
5            (iv) the proposed mix and selection of standard
6        wholesale products for which contracts will be
7        executed during the next year, separately or in
8        combination, to meet that portion of its load
9        requirements not met through pre-existing contracts,
10        including but not limited to monthly 5 x 16 peak period
11        block energy, monthly off-peak wrap energy, monthly 7
12        x 24 energy, annual 5 x 16 energy, other standardized
13        energy or capacity products designed to provide
14        eligible retail customer benefits from commercially
15        deployed advanced technologies including but not
16        limited to high voltage direct current converter
17        stations, as such term is defined in Section 1-10 of
18        the Illinois Power Agency Act, whether or not such
19        product is currently available in wholesale markets,
20        annual off-peak wrap energy, annual 7 x 24 energy,
21        monthly capacity, annual capacity, peak load capacity
22        obligations, capacity purchase plan, and ancillary
23        services;
24            (v) proposed term structures for each wholesale
25        product type included in the proposed procurement plan
26        portfolio of products; and

 

 

10200HB3666sam001- 883 -LRB102 13525 AMC 28481 a

1            (vi) an assessment of the price risk, load
2        uncertainty, and other factors that are associated
3        with the proposed procurement plan; this assessment,
4        to the extent possible, shall include an analysis of
5        the following factors: contract terms, time frames for
6        securing products or services, fuel costs, weather
7        patterns, transmission costs, market conditions, and
8        the governmental regulatory environment; the proposed
9        procurement plan shall also identify alternatives for
10        those portfolio measures that are identified as having
11        significant price risk and mitigation in the form of
12        additional retail customer and ratepayer price,
13        reliability, and environmental benefits from
14        standardized energy products delivered from
15        commercially deployed advanced technologies,
16        including, but not limited to, high voltage direct
17        current converter stations, as such term is defined in
18        Section 1-10 of the Illinois Power Agency Act, whether
19        or not such product is currently available in
20        wholesale markets.
21        (4) Proposed procedures for balancing loads. The
22    procurement plan shall include, for load requirements
23    included in the procurement plan, the process for (i)
24    hourly balancing of supply and demand and (ii) the
25    criteria for portfolio re-balancing in the event of
26    significant shifts in load.

 

 

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1        (5) Long-Term Renewable Resources Procurement Plan.
2    The Agency shall prepare a long-term renewable resources
3    procurement plan for the procurement of renewable energy
4    credits under Sections 1-56 and 1-75 of the Illinois Power
5    Agency Act for delivery beginning in the 2017 delivery
6    year.
7            (i) The initial long-term renewable resources
8        procurement plan and all subsequent revisions shall be
9        subject to review and approval by the Commission. For
10        the purposes of this Section, "delivery year" has the
11        same meaning as in Section 1-10 of the Illinois Power
12        Agency Act. For purposes of this Section, "Agency"
13        shall mean the Illinois Power Agency.
14            (ii) The long-term renewable resources planning
15        process shall be conducted as follows:
16                (A) Electric utilities shall provide a range
17            of load forecasts to the Illinois Power Agency
18            within 45 days of the Agency's request for
19            forecasts, which request shall specify the length
20            and conditions for the forecasts including, but
21            not limited to, the quantity of distributed
22            generation expected to be interconnected for each
23            year.
24                (B) The Agency shall publish for comment the
25            initial long-term renewable resources procurement
26            plan no later than 120 days after the effective

 

 

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1            date of this amendatory Act of the 99th General
2            Assembly and shall review, and may revise, the
3            plan at least every 2 years thereafter. To the
4            extent practicable, the Agency shall review and
5            propose any revisions to the long-term renewable
6            energy resources procurement plan in conjunction
7            with the Agency's other planning and approval
8            processes conducted under this Section. The
9            initial long-term renewable resources procurement
10            plan shall:
11                    (aa) Identify the procurement programs and
12                competitive procurement events consistent with
13                the applicable requirements of the Illinois
14                Power Agency Act and shall be designed to
15                achieve the goals set forth in subsection (c)
16                of Section 1-75 of that Act.
17                    (bb) Include a schedule for procurements
18                for renewable energy credits from
19                utility-scale wind projects, utility-scale
20                solar projects, and brownfield site
21                photovoltaic projects consistent with
22                subparagraph (G) of paragraph (1) of
23                subsection (c) of Section 1-75 of the Illinois
24                Power Agency Act.
25                    (cc) Identify the process whereby the
26                Agency will submit to the Commission for

 

 

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1                review and approval the proposed contracts to
2                implement the programs required by such plan.
3                Copies of the initial long-term renewable
4            resources procurement plan and all subsequent
5            revisions shall be posted and made publicly
6            available on the Agency's and Commission's
7            websites, and copies shall also be provided to
8            each affected electric utility. An affected
9            utility and other interested parties shall have 45
10            days following the date of posting to provide
11            comment to the Agency on the initial long-term
12            renewable resources procurement plan and all
13            subsequent revisions. All comments submitted to
14            the Agency shall be specific, supported by data or
15            other detailed analyses, and, if objecting to all
16            or a portion of the procurement plan, accompanied
17            by specific alternative wording or proposals. All
18            comments shall be posted on the Agency's and
19            Commission's websites. During this 45-day comment
20            period, the Agency shall hold at least one public
21            hearing within each utility's service area that is
22            subject to the requirements of this paragraph (5)
23            for the purpose of receiving public comment.
24            Within 21 days following the end of the 45-day
25            review period, the Agency may revise the long-term
26            renewable resources procurement plan based on the

 

 

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1            comments received and shall file the plan with the
2            Commission for review and approval.
3                (C) Within 14 days after the filing of the
4            initial long-term renewable resources procurement
5            plan or any subsequent revisions, any person
6            objecting to the plan may file an objection with
7            the Commission. Within 21 days after the filing of
8            the plan, the Commission shall determine whether a
9            hearing is necessary. The Commission shall enter
10            its order confirming or modifying the initial
11            long-term renewable resources procurement plan or
12            any subsequent revisions within 120 days after the
13            filing of the plan by the Illinois Power Agency.
14                (D) The Commission shall approve the initial
15            long-term renewable resources procurement plan and
16            any subsequent revisions, including expressly the
17            forecast used in the plan and taking into account
18            that funding will be limited to the amount of
19            revenues actually collected by the utilities, if
20            the Commission determines that the plan will
21            reasonably and prudently accomplish the
22            requirements of Section 1-56 and subsection (c) of
23            Section 1-75 of the Illinois Power Agency Act. The
24            Commission shall also approve the process for the
25            submission, review, and approval of the proposed
26            contracts to procure renewable energy credits or

 

 

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1            implement the programs authorized by the
2            Commission pursuant to a long-term renewable
3            resources procurement plan approved under this
4            Section.
5                In approving any long-term renewable resources
6            procurement plan after the effective date of this
7            amendatory Act of the 102nd General Assembly, the
8            Commission shall approve or modify the Agency's
9            proposal for minimum equity standards pursuant to
10            subsection (c-10) of Section 1-75 of the Illinois
11            Power Agency Act. The Commission shall consider
12            any analysis performed by the Agency in developing
13            its proposal, including past performance,
14            availability of equity eligible contractors, and
15            availability of equity eligible persons at the
16            time the long-term renewable resources procurement
17            plan is approved.
18            (iii) The Agency or third parties contracted by
19        the Agency shall implement all programs authorized by
20        the Commission in an approved long-term renewable
21        resources procurement plan without further review and
22        approval by the Commission. Third parties shall not
23        begin implementing any programs or receive any payment
24        under this Section until the Commission has approved
25        the contract or contracts under the process authorized
26        by the Commission in item (D) of subparagraph (ii) of

 

 

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1        paragraph (5) of this subsection (b) and the third
2        party and the Agency or utility, as applicable, have
3        executed the contract. For those renewable energy
4        credits subject to procurement through a competitive
5        bid process under the plan or under the initial
6        forward procurements for wind and solar resources
7        described in subparagraph (G) of paragraph (1) of
8        subsection (c) of Section 1-75 of the Illinois Power
9        Agency Act, the Agency shall follow the procurement
10        process specified in the provisions relating to
11        electricity procurement in subsections (e) through (i)
12        of this Section.
13            (iv) An electric utility shall recover its costs
14        associated with the procurement of renewable energy
15        credits under this Section and pursuant to subsection
16        (c-5) of Section 1-75 of the Illinois Power Agency Act
17        through an automatic adjustment clause tariff under
18        subsection (k) or a tariff pursuant to subsection
19        (i-5), as applicable, of Section 16-108 of this Act. A
20        utility shall not be required to advance any payment
21        or pay any amounts under this Section that exceed the
22        actual amount of revenues collected by the utility
23        under paragraph (6) of subsection (c) of Section 1-75
24        of the Illinois Power Agency Act, subsection (c-5) of
25        Section 1-75 of the Illinois Power Agency Act, and
26        subsection (k) or subsection (i-5), as applicable, of

 

 

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1        Section 16-108 of this Act, and contracts executed
2        under this Section shall expressly incorporate this
3        limitation.
4            (v) For the public interest, safety, and welfare,
5        the Agency and the Commission may adopt rules to carry
6        out the provisions of this Section on an emergency
7        basis immediately following the effective date of this
8        amendatory Act of the 99th General Assembly.
9            (vi) On or before July 1 of each year, the
10        Commission shall hold an informal hearing for the
11        purpose of receiving comments on the prior year's
12        procurement process and any recommendations for
13        change.
14    (b-5) An electric utility that as of January 1, 2019
15served more than 300,000 retail customers in this State shall
16purchase renewable energy credits from new renewable energy
17facilities constructed at or adjacent to the sites of
18coal-fueled electric generating facilities in this State in
19accordance with subsection (c-5) of Section 1-75 of the
20Illinois Power Agency Act. Except as expressly provided in
21this Section, the plans and procedures for such procurements
22shall not be included in the procurement plans provided for in
23this Section, but rather shall be conducted and implemented
24solely in accordance with subsection (c-5) of Section 1-75 of
25the Illinois Power Agency Act.
26    (c) The provisions of this subsection (c) shall not apply

 

 

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1to procurements conducted pursuant to subsection (c-5) of
2Section 1-75 of the Illinois Power Agency Act. However, the
3Agency may retain a procurement administrator to assist the
4Agency in planning and carrying out the procurement events and
5implementing the other requirements specified in such
6subsection (c-5) of Section 1-75 of the Illinois Power Agency
7Act, with the costs incurred by the Agency for the procurement
8administrator to be recovered through fees charged to
9applicants for selection to sell and deliver renewable energy
10credits to electric utilities pursuant to subsection (c-5) of
11Section 1-75 of the Illinois Power Agency Act. The procurement
12process set forth in Section 1-75 of the Illinois Power Agency
13Act and subsection (e) of this Section shall be administered
14by a procurement administrator and monitored by a procurement
15monitor.
16        (1) The procurement administrator shall:
17            (i) design the final procurement process in
18        accordance with Section 1-75 of the Illinois Power
19        Agency Act and subsection (e) of this Section
20        following Commission approval of the procurement plan;
21            (ii) develop benchmarks in accordance with
22        subsection (e)(3) to be used to evaluate bids; these
23        benchmarks shall be submitted to the Commission for
24        review and approval on a confidential basis prior to
25        the procurement event;
26            (iii) serve as the interface between the electric

 

 

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1        utility and suppliers;
2            (iv) manage the bidder pre-qualification and
3        registration process;
4            (v) obtain the electric utilities' agreement to
5        the final form of all supply contracts and credit
6        collateral agreements;
7            (vi) administer the request for proposals process;
8            (vii) have the discretion to negotiate to
9        determine whether bidders are willing to lower the
10        price of bids that meet the benchmarks approved by the
11        Commission; any post-bid negotiations with bidders
12        shall be limited to price only and shall be completed
13        within 24 hours after opening the sealed bids and
14        shall be conducted in a fair and unbiased manner; in
15        conducting the negotiations, there shall be no
16        disclosure of any information derived from proposals
17        submitted by competing bidders; if information is
18        disclosed to any bidder, it shall be provided to all
19        competing bidders;
20            (viii) maintain confidentiality of supplier and
21        bidding information in a manner consistent with all
22        applicable laws, rules, regulations, and tariffs;
23            (ix) submit a confidential report to the
24        Commission recommending acceptance or rejection of
25        bids;
26            (x) notify the utility of contract counterparties

 

 

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1        and contract specifics; and
2            (xi) administer related contingency procurement
3        events.
4        (2) The procurement monitor, who shall be retained by
5    the Commission, shall:
6            (i) monitor interactions among the procurement
7        administrator, suppliers, and utility;
8            (ii) monitor and report to the Commission on the
9        progress of the procurement process;
10            (iii) provide an independent confidential report
11        to the Commission regarding the results of the
12        procurement event;
13            (iv) assess compliance with the procurement plans
14        approved by the Commission for each utility that on
15        December 31, 2005 provided electric service to at
16        least 100,000 customers in Illinois and for each small
17        multi-jurisdictional utility that on December 31, 2005
18        served less than 100,000 customers in Illinois;
19            (v) preserve the confidentiality of supplier and
20        bidding information in a manner consistent with all
21        applicable laws, rules, regulations, and tariffs;
22            (vi) provide expert advice to the Commission and
23        consult with the procurement administrator regarding
24        issues related to procurement process design, rules,
25        protocols, and policy-related matters; and
26            (vii) consult with the procurement administrator

 

 

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1        regarding the development and use of benchmark
2        criteria, standard form contracts, credit policies,
3        and bid documents.
4    (d) Except as provided in subsection (j), the planning
5process shall be conducted as follows:
6        (1) Beginning in 2008, each Illinois utility procuring
7    power pursuant to this Section shall annually provide a
8    range of load forecasts to the Illinois Power Agency by
9    July 15 of each year, or such other date as may be required
10    by the Commission or Agency. The load forecasts shall
11    cover the 5-year procurement planning period for the next
12    procurement plan and shall include hourly data
13    representing a high-load, low-load, and expected-load
14    scenario for the load of those retail customers included
15    in the plan's electric supply service requirements. The
16    utility shall provide supporting data and assumptions for
17    each of the scenarios.
18        (2) Beginning in 2008, the Illinois Power Agency shall
19    prepare a procurement plan by August 15th of each year, or
20    such other date as may be required by the Commission. The
21    procurement plan shall identify the portfolio of
22    demand-response and power and energy products to be
23    procured. Cost-effective demand-response measures shall be
24    procured as set forth in item (iii) of subsection (b) of
25    this Section. Copies of the procurement plan shall be
26    posted and made publicly available on the Agency's and

 

 

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1    Commission's websites, and copies shall also be provided
2    to each affected electric utility. An affected utility
3    shall have 30 days following the date of posting to
4    provide comment to the Agency on the procurement plan.
5    Other interested entities also may comment on the
6    procurement plan. All comments submitted to the Agency
7    shall be specific, supported by data or other detailed
8    analyses, and, if objecting to all or a portion of the
9    procurement plan, accompanied by specific alternative
10    wording or proposals. All comments shall be posted on the
11    Agency's and Commission's websites. During this 30-day
12    comment period, the Agency shall hold at least one public
13    hearing within each utility's service area for the purpose
14    of receiving public comment on the procurement plan.
15    Within 14 days following the end of the 30-day review
16    period, the Agency shall revise the procurement plan as
17    necessary based on the comments received and file the
18    procurement plan with the Commission and post the
19    procurement plan on the websites.
20        (3) Within 5 days after the filing of the procurement
21    plan, any person objecting to the procurement plan shall
22    file an objection with the Commission. Within 10 days
23    after the filing, the Commission shall determine whether a
24    hearing is necessary. The Commission shall enter its order
25    confirming or modifying the procurement plan within 90
26    days after the filing of the procurement plan by the

 

 

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1    Illinois Power Agency.
2        (4) The Commission shall approve the procurement plan,
3    including expressly the forecast used in the procurement
4    plan, if the Commission determines that it will ensure
5    adequate, reliable, affordable, efficient, and
6    environmentally sustainable electric service at the lowest
7    total cost over time, taking into account any benefits of
8    price stability.
9        (4.5) The Commission shall review the Agency's
10    recommendations for the selection of applicants to enter
11    into long-term contracts for the sale and delivery of
12    renewable energy credits from new renewable energy
13    facilities to be constructed at or adjacent to the sites
14    of coal-fueled electric generating facilities in this
15    State in accordance with the provisions of subsection
16    (c-5) of Section 1-75 of the Illinois Power Agency Act,
17    and shall approve the Agency's recommendations if the
18    Commission determines that the applicants recommended by
19    the Agency for selection, the proposed new renewable
20    energy facilities to be constructed, the amounts of
21    renewable energy credits to be delivered pursuant to the
22    contracts, and the other terms of the contracts, are
23    consistent with the requirements of subsection (c-5) of
24    Section 1-75 of the Illinois Power Agency Act.
25    (e) The procurement process shall include each of the
26following components:

 

 

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

 

 

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1    generally accepted industry practices shall be similarly
2    developed. The procurement administrator shall make
3    available to the Commission all written comments it
4    receives on the contract forms, credit terms, or
5    instruments. If the procurement administrator cannot reach
6    agreement with the applicable electric utility as to the
7    contract terms and conditions, the procurement
8    administrator must notify the Commission of any disputed
9    terms and the Commission shall resolve the dispute. The
10    terms of the contracts shall not be subject to negotiation
11    by winning bidders, and the bidders must agree to the
12    terms of the contract in advance so that winning bids are
13    selected solely on the basis of price.
14        (3) Establishment of a market-based price benchmark.
15    As part of the development of the procurement process, the
16    procurement administrator, in consultation with the
17    Commission staff, Agency staff, and the procurement
18    monitor, shall establish benchmarks for evaluating the
19    final prices in the contracts for each of the products
20    that will be procured through the procurement process. The
21    benchmarks shall be based on price data for similar
22    products for the same delivery period and same delivery
23    hub, or other delivery hubs after adjusting for that
24    difference. The price benchmarks may also be adjusted to
25    take into account differences between the information
26    reflected in the underlying data sources and the specific

 

 

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1    products and procurement process being used to procure
2    power for the Illinois utilities. The benchmarks shall be
3    confidential but shall be provided to, and will be subject
4    to Commission review and approval, prior to a procurement
5    event.
6        (4) Request for proposals competitive procurement
7    process. The procurement administrator shall design and
8    issue a request for proposals to supply electricity in
9    accordance with each utility's procurement plan, as
10    approved by the Commission. The request for proposals
11    shall set forth a procedure for sealed, binding commitment
12    bidding with pay-as-bid settlement, and provision for
13    selection of bids on the basis of price.
14        (5) A plan for implementing contingencies in the event
15    of supplier default or failure of the procurement process
16    to fully meet the expected load requirement due to
17    insufficient supplier participation, Commission rejection
18    of results, or any other cause.
19            (i) Event of supplier default: In the event of
20        supplier default, the utility shall review the
21        contract of the defaulting supplier to determine if
22        the amount of supply is 200 megawatts or greater, and
23        if there are more than 60 days remaining of the
24        contract term. If both of these conditions are met,
25        and the default results in termination of the
26        contract, the utility shall immediately notify the

 

 

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1        Illinois Power Agency that a request for proposals
2        must be issued to procure replacement power, and the
3        procurement administrator shall run an additional
4        procurement event. If the contracted supply of the
5        defaulting supplier is less than 200 megawatts or
6        there are less than 60 days remaining of the contract
7        term, the utility shall procure power and energy from
8        the applicable regional transmission organization
9        market, including ancillary services, capacity, and
10        day-ahead or real time energy, or both, for the
11        duration of the contract term to replace the
12        contracted supply; provided, however, that if a needed
13        product is not available through the regional
14        transmission organization market it shall be purchased
15        from the wholesale market.
16            (ii) Failure of the procurement process to fully
17        meet the expected load requirement: If the procurement
18        process fails to fully meet the expected load
19        requirement due to insufficient supplier participation
20        or due to a Commission rejection of the procurement
21        results, the procurement administrator, the
22        procurement monitor, and the Commission staff shall
23        meet within 10 days to analyze potential causes of low
24        supplier interest or causes for the Commission
25        decision. If changes are identified that would likely
26        result in increased supplier participation, or that

 

 

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1        would address concerns causing the Commission to
2        reject the results of the prior procurement event, the
3        procurement administrator may implement those changes
4        and rerun the request for proposals process according
5        to a schedule determined by those parties and
6        consistent with Section 1-75 of the Illinois Power
7        Agency Act and this subsection. In any event, a new
8        request for proposals process shall be implemented by
9        the procurement administrator within 90 days after the
10        determination that the procurement process has failed
11        to fully meet the expected load requirement.
12            (iii) In all cases where there is insufficient
13        supply provided under contracts awarded through the
14        procurement process to fully meet the electric
15        utility's load requirement, the utility shall meet the
16        load requirement by procuring power and energy from
17        the applicable regional transmission organization
18        market, including ancillary services, capacity, and
19        day-ahead or real time energy, or both; provided,
20        however, that if a needed product is not available
21        through the regional transmission organization market
22        it shall be purchased from the wholesale market.
23        (6) The procurement processes process described in
24    this subsection and in subsection (c-5) of Section 1-75 of
25    the Illinois Power Agency Act are is exempt from the
26    requirements of the Illinois Procurement Code, pursuant to

 

 

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1    Section 20-10 of that Code.
2    (f) Within 2 business days after opening the sealed bids,
3the procurement administrator shall submit a confidential
4report to the Commission. The report shall contain the results
5of the bidding for each of the products along with the
6procurement administrator's recommendation for the acceptance
7and rejection of bids based on the price benchmark criteria
8and other factors observed in the process. The procurement
9monitor also shall submit a confidential report to the
10Commission within 2 business days after opening the sealed
11bids. The report shall contain the procurement monitor's
12assessment of bidder behavior in the process as well as an
13assessment of the procurement administrator's compliance with
14the procurement process and rules. The Commission shall review
15the confidential reports submitted by the procurement
16administrator and procurement monitor, and shall accept or
17reject the recommendations of the procurement administrator
18within 2 business days after receipt of the reports.
19    (g) Within 3 business days after the Commission decision
20approving the results of a procurement event, the utility
21shall enter into binding contractual arrangements with the
22winning suppliers using the standard form contracts; except
23that the utility shall not be required either directly or
24indirectly to execute the contracts if a tariff that is
25consistent with subsection (l) of this Section has not been
26approved and placed into effect for that utility.

 

 

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1    (h) For the procurement of standard wholesale products,
2the names of the successful bidders and the load weighted
3average of the winning bid prices for each contract type and
4for each contract term shall be made available to the public at
5the time of Commission approval of a procurement event. For
6procurements conducted to meet the requirements of subsection
7(b) of Section 1-56 or subsection (c) of Section 1-75 of the
8Illinois Power Agency Act governed by the provisions of this
9Section, the address and nameplate capacity of the new
10renewable energy generating facility proposed by a winning
11bidder shall also be made available to the public at the time
12of Commission approval of a procurement event, along with the
13business address and contact information for any winning
14bidder. An estimate or approximation of the nameplate capacity
15of the new renewable energy generating facility may be
16disclosed if necessary to protect the confidentiality of
17individual bid prices.
18    The Commission, the procurement monitor, the procurement
19administrator, the Illinois Power Agency, and all participants
20in the procurement process shall maintain the confidentiality
21of all other supplier and bidding information in a manner
22consistent with all applicable laws, rules, regulations, and
23tariffs. Confidential information, including the confidential
24reports submitted by the procurement administrator and
25procurement monitor pursuant to subsection (f) of this
26Section, shall not be made publicly available and shall not be

 

 

10200HB3666sam001- 904 -LRB102 13525 AMC 28481 a

1discoverable by any party in any proceeding, absent a
2compelling demonstration of need, nor shall those reports be
3admissible in any proceeding other than one for law
4enforcement purposes. The names of the successful bidders and
5the load weighted average of the winning bid prices for each
6contract type and for each contract term shall be made
7available to the public at the time of Commission approval of a
8procurement event. The Commission, the procurement monitor,
9the procurement administrator, the Illinois Power Agency, and
10all participants in the procurement process shall maintain the
11confidentiality of all other supplier and bidding information
12in a manner consistent with all applicable laws, rules,
13regulations, and tariffs. Confidential information, including
14the confidential reports submitted by the procurement
15administrator and procurement monitor pursuant to subsection
16(f) of this Section, shall not be made publicly available and
17shall not be discoverable by any party in any proceeding,
18absent a compelling demonstration of need, nor shall those
19reports be admissible in any proceeding other than one for law
20enforcement purposes.
21    (i) Within 2 business days after a Commission decision
22approving the results of a procurement event or such other
23date as may be required by the Commission from time to time,
24the utility shall file for informational purposes with the
25Commission its actual or estimated retail supply charges, as
26applicable, by customer supply group reflecting the costs

 

 

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1associated with the procurement and computed in accordance
2with the tariffs filed pursuant to subsection (l) of this
3Section and approved by the Commission.
4    (j) Within 60 days following August 28, 2007 (the
5effective date of Public Act 95-481), each electric utility
6that on December 31, 2005 provided electric service to at
7least 100,000 customers in Illinois shall prepare and file
8with the Commission an initial procurement plan, which shall
9conform in all material respects to the requirements of the
10procurement plan set forth in subsection (b); provided,
11however, that the Illinois Power Agency Act shall not apply to
12the initial procurement plan prepared pursuant to this
13subsection. The initial procurement plan shall identify the
14portfolio of power and energy products to be procured and
15delivered for the period June 2008 through May 2009, and shall
16identify the proposed procurement administrator, who shall
17have the same experience and expertise as is required of a
18procurement administrator hired pursuant to Section 1-75 of
19the Illinois Power Agency Act. Copies of the procurement plan
20shall be posted and made publicly available on the
21Commission's website. The initial procurement plan may include
22contracts for renewable resources that extend beyond May 2009.
23        (i) Within 14 days following filing of the initial
24    procurement plan, any person may file a detailed objection
25    with the Commission contesting the procurement plan
26    submitted by the electric utility. All objections to the

 

 

10200HB3666sam001- 906 -LRB102 13525 AMC 28481 a

1    electric utility's plan shall be specific, supported by
2    data or other detailed analyses. The electric utility may
3    file a response to any objections to its procurement plan
4    within 7 days after the date objections are due to be
5    filed. Within 7 days after the date the utility's response
6    is due, the Commission shall determine whether a hearing
7    is necessary. If it determines that a hearing is
8    necessary, it shall require the hearing to be completed
9    and issue an order on the procurement plan within 60 days
10    after the filing of the procurement plan by the electric
11    utility.
12        (ii) The order shall approve or modify the procurement
13    plan, approve an independent procurement administrator,
14    and approve or modify the electric utility's tariffs that
15    are proposed with the initial procurement plan. The
16    Commission shall approve the procurement plan if the
17    Commission determines that it will ensure adequate,
18    reliable, affordable, efficient, and environmentally
19    sustainable electric service at the lowest total cost over
20    time, taking into account any benefits of price stability.
21    (k) (Blank).
22    (k-5) (Blank).
23    (l) An electric utility shall recover its costs incurred
24under this Section and subsection (c-5) of Section 1-75 of the
25Illinois Power Agency Act, including, but not limited to, the
26costs of procuring power and energy demand-response resources

 

 

10200HB3666sam001- 907 -LRB102 13525 AMC 28481 a

1under this Section and its costs for purchasing renewable
2energy credits pursuant to subsection (c-5) of Section 1-75 of
3the Illinois Power Agency Act. The utility shall file with the
4initial procurement plan its proposed tariffs through which
5its costs of procuring power that are incurred pursuant to a
6Commission-approved procurement plan and those other costs
7identified in this subsection (l), will be recovered. The
8tariffs shall include a formula rate or charge designed to
9pass through both the costs incurred by the utility in
10procuring a supply of electric power and energy for the
11applicable customer classes with no mark-up or return on the
12price paid by the utility for that supply, plus any just and
13reasonable costs that the utility incurs in arranging and
14providing for the supply of electric power and energy. The
15formula rate or charge shall also contain provisions that
16ensure that its application does not result in over or under
17recovery due to changes in customer usage and demand patterns,
18and that provide for the correction, on at least an annual
19basis, of any accounting errors that may occur. A utility
20shall recover through the tariff all reasonable costs incurred
21to implement or comply with any procurement plan that is
22developed and put into effect pursuant to Section 1-75 of the
23Illinois Power Agency Act and this Section, and for the
24procurement of renewable energy credits pursuant to subsection
25(c-5) of Section 1-75 of the Illinois Power Agency Act,
26including any fees assessed by the Illinois Power Agency,

 

 

10200HB3666sam001- 908 -LRB102 13525 AMC 28481 a

1costs associated with load balancing, and contingency plan
2costs. The electric utility shall also recover its full costs
3of procuring electric supply for which it contracted before
4the effective date of this Section in conjunction with the
5provision of full requirements service under fixed-price
6bundled service tariffs subsequent to December 31, 2006. All
7such costs shall be deemed to have been prudently incurred.
8The pass-through tariffs that are filed and approved pursuant
9to this Section shall not be subject to review under, or in any
10way limited by, Section 16-111(i) of this Act. All of the costs
11incurred by the electric utility associated with the purchase
12of zero emission credits in accordance with subsection (d-5)
13of Section 1-75 of the Illinois Power Agency Act, all costs
14incurred by the electric utility associated with the purchase
15of carbon mitigation credits in accordance with subsection
16(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
17beginning June 1, 2017, all of the costs incurred by the
18electric utility associated with the purchase of renewable
19energy resources in accordance with Sections 1-56 and 1-75 of
20the Illinois Power Agency Act, and all of the costs incurred by
21the electric utility in purchasing renewable energy credits in
22accordance with subsection (c-5) of Section 1-75 of the
23Illinois Power Agency Act, shall be recovered through the
24electric utility's tariffed charges applicable to all of its
25retail customers, as specified in subsection (k) or subsection
26(i-5), as applicable, of Section 16-108 of this Act, and shall

 

 

10200HB3666sam001- 909 -LRB102 13525 AMC 28481 a

1not be recovered through the electric utility's tariffed
2charges for electric power and energy supply to its eligible
3retail customers.
4    (m) The Commission has the authority to adopt rules to
5carry out the provisions of this Section. For the public
6interest, safety, and welfare, the Commission also has
7authority to adopt rules to carry out the provisions of this
8Section on an emergency basis immediately following August 28,
92007 (the effective date of Public Act 95-481).
10    (n) Notwithstanding any other provision of this Act, any
11affiliated electric utilities that submit a single procurement
12plan covering their combined needs may procure for those
13combined needs in conjunction with that plan, and may enter
14jointly into power supply contracts, purchases, and other
15procurement arrangements, and allocate capacity and energy and
16cost responsibility therefor among themselves in proportion to
17their requirements.
18    (o) On or before June 1 of each year, the Commission shall
19hold an informal hearing for the purpose of receiving comments
20on the prior year's procurement process and any
21recommendations for change.
22    (p) An electric utility subject to this Section may
23propose to invest, lease, own, or operate an electric
24generation facility as part of its procurement plan, provided
25the utility demonstrates that such facility is the least-cost
26option to provide electric service to those retail customers

 

 

10200HB3666sam001- 910 -LRB102 13525 AMC 28481 a

1included in the plan's electric supply service requirements.
2If the facility is shown to be the least-cost option and is
3included in a procurement plan prepared in accordance with
4Section 1-75 of the Illinois Power Agency Act and this
5Section, then the electric utility shall make a filing
6pursuant to Section 8-406 of this Act, and may request of the
7Commission any statutory relief required thereunder. If the
8Commission grants all of the necessary approvals for the
9proposed facility, such supply shall thereafter be considered
10as a pre-existing contract under subsection (b) of this
11Section. The Commission shall in any order approving a
12proposal under this subsection specify how the utility will
13recover the prudently incurred costs of investing in, leasing,
14owning, or operating such generation facility through just and
15reasonable rates charged to those retail customers included in
16the plan's electric supply service requirements. Cost recovery
17for facilities included in the utility's procurement plan
18pursuant to this subsection shall not be subject to review
19under or in any way limited by the provisions of Section
2016-111(i) of this Act. Nothing in this Section is intended to
21prohibit a utility from filing for a fuel adjustment clause as
22is otherwise permitted under Section 9-220 of this Act.
23    (q) If the Illinois Power Agency filed with the
24Commission, under Section 16-111.5 of this Act, its proposed
25procurement plan for the period commencing June 1, 2017, and
26the Commission has not yet entered its final order approving

 

 

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1the plan on or before the effective date of this amendatory Act
2of the 99th General Assembly, then the Illinois Power Agency
3shall file a notice of withdrawal with the Commission, after
4the effective date of this amendatory Act of the 99th General
5Assembly, to withdraw the proposed procurement of renewable
6energy resources to be approved under the plan, other than the
7procurement of renewable energy credits from distributed
8renewable energy generation devices using funds previously
9collected from electric utilities' retail customers that take
10service pursuant to electric utilities' hourly pricing tariff
11or tariffs and, for an electric utility that serves less than
12100,000 retail customers in the State, other than the
13procurement of renewable energy credits from distributed
14renewable energy generation devices. Upon receipt of the
15notice, the Commission shall enter an order that approves the
16withdrawal of the proposed procurement of renewable energy
17resources from the plan. The initially proposed procurement of
18renewable energy resources shall not be approved or be the
19subject of any further hearing, investigation, proceeding, or
20order of any kind.
21    This amendatory Act of the 99th General Assembly preempts
22and supersedes any order entered by the Commission that
23approved the Illinois Power Agency's procurement plan for the
24period commencing June 1, 2017, to the extent it is
25inconsistent with the provisions of this amendatory Act of the
2699th General Assembly. To the extent any previously entered

 

 

10200HB3666sam001- 912 -LRB102 13525 AMC 28481 a

1order approved the procurement of renewable energy resources,
2the portion of that order approving the procurement shall be
3void, other than the procurement of renewable energy credits
4from distributed renewable energy generation devices using
5funds previously collected from electric utilities' retail
6customers that take service under electric utilities' hourly
7pricing tariff or tariffs and, for an electric utility that
8serves less than 100,000 retail customers in the State, other
9than the procurement of renewable energy credits for
10distributed renewable energy generation devices.
11(Source: P.A. 99-906, eff. 6-1-17.)
 
12    (220 ILCS 5/16-111.10 new)
13    Sec. 16-111.10. Equitable Energy Upgrade Program.
14    (a) The General Assembly finds and declares that Illinois
15homes and businesses can contribute to the creation of a clean
16energy economy, conservation of natural resources, and
17reliability of the electricity grid through the installation
18of cost-effective renewable energy generation, energy
19efficiency and demand response equipment, and energy storage
20systems. Further, a large portion of Illinois residents and
21businesses that would benefit from the installation of energy
22efficiency, storage, and renewable energy generation systems
23are unable to purchase systems due to capital or credit
24barriers. This State should pursue options to enable many more
25Illinoisans to access the health, environmental, and financial

 

 

10200HB3666sam001- 913 -LRB102 13525 AMC 28481 a

1benefits of new clean energy technology.
2    (b) As used in this Section:
3    "Commission" means the Illinois Commerce Commission.
4    "Energy project" means renewable energy generation
5systems, including solar projects, energy efficiency upgrades,
6energy storage systems, demand response equipment, or any
7combination thereof.
8    "Fund" means the Clean Energy Jobs and Justice Fund
9established in the Clean Energy Jobs and Justice Fund Act.
10    "Program" means the Equitable Energy Upgrade Program
11established under subsection (c).
12    "Utility" means electric public utilities providing
13services to 500,000 or more customers under this Act.
14    (c) The Commission shall open an investigation into and
15direct all electric public utilities in this State to adopt an
16Equitable Energy Upgrade Program that permits customers to
17finance the construction of energy projects through an
18optional tariff payable directly through their utility bill,
19modeled after the Pay As You Save system, developed by the
20Energy Efficiency Institute. The Program model shall enable
21utilities to offer to make investments in energy projects to
22customer properties with low-cost capital and use an opt-in
23tariff to recover the costs. The Program shall be designed to
24provide customers with immediate financial savings if they
25choose to participate. The Program shall allow residential
26electric utility customers that own the property, or renters

 

 

10200HB3666sam001- 914 -LRB102 13525 AMC 28481 a

1that have permission of the property owner, for which they
2subscribe to utility service to agree to the installation of
3an energy project. The Program shall ensure:
4        (1) eligible projects do not require upfront payments;
5    however, customers may pay down the costs for projects
6    with a payment to the installing contractor in order to
7    qualify projects that would otherwise require upfront
8    payments;
9        (2) eligible projects have sufficient estimated
10    savings and estimated life span to produce significant,
11    immediate net savings;
12        (3) participants shall agree the utility can recover
13    its costs for the projects at their location by paying for
14    the project through an optional tariff directly through
15    the participant's electricity bill, allowing participants
16    to benefit from installation of energy projects without
17    traditional loans;
18        (4) accessibility by lower-income residents and
19    environmental justice community residents; and
20        (5) the utility must ensure that customers who are
21    interested in participating are notified that if they are
22    income qualified, they may also be eligible for the
23    Percentage of Income Payment Plan program and free energy
24    improvements through other programs and provide contact
25    information.
26    (d) The Commission shall establish Program guidelines with

 

 

10200HB3666sam001- 915 -LRB102 13525 AMC 28481 a

1the anticipated schedule of Program availability as follows:
2        (1) Year 1: Beginning in the first year of operation,
3    each utility is required to obtain low-cost capital of at
4    least $20,000,000 annually for investments in energy
5    projects.
6        (2) Year 2: Beginning in the second year of operation,
7    each utility is required to obtain low-cost capital for
8    investments in energy projects of at least $40,000,000
9    annually.
10        (3) Year 3: Beginning in the third year of operation,
11    each utility is required to obtain low-cost capital for
12    investments in as many systems as customers demand,
13    subject to available capital provided by the utility,
14    State, or other lenders.
15    (e) In the design of the Program, the Commission shall:
16        (1) Within 270 days after the effective date of this
17    amendatory Act of the 102nd General Assembly, convene a
18    workshop during which interested participants may discuss
19    issues and submit comments related to the Program.
20        (2) Establish Program guidelines for implementation of
21    the Program in accordance with the Pay As You Save
22    Essential Elements and Minimum Program Requirements that
23    electric utilities must abide by when implementing the
24    Program. Program guidelines established by the Commission
25    shall include the following elements:
26            (A) The Commission shall establish conditions

 

 

10200HB3666sam001- 916 -LRB102 13525 AMC 28481 a

1        under which utilities secure capital to fund the
2        energy projects. The Commission may allow utilities to
3        raise capital independently, work with third-party
4        lenders to secure the capital for participants, or a
5        combination thereof. Any process the Commission
6        approves must use a market mechanism to identify the
7        least costly sources of capital funds so as to pass on
8        maximum savings to participants. The State or the
9        Clean Energy Jobs and Justice Fund may also provide
10        capital for the Program.
11            (B) Customer protection guidelines should be
12        designed consistent with Pay As You Save Essential
13        Elements and Minimum Program Requirements.
14            (C) The Commission shall establish conditions by
15        which utilities may connect Program participants to
16        energy project vendors. In setting conditions for
17        connection, the Commission may prioritize vendors that
18        have a history of good relations with the State,
19        including vendors that have hired participants from
20        State-created job training programs.
21            (D) Guarantee that conservative estimates of
22        financial savings will immediately and significantly
23        exceed Program costs for Program participants.
24    (f) Within 120 days after the Commission releases the
25Program conditions established under this Section, each
26utility subject to the requirements of this Section shall

 

 

10200HB3666sam001- 917 -LRB102 13525 AMC 28481 a

1submit an informational filing to the Commission that
2describes its plan for implementing the provisions of this
3Section. If the Commission finds that the submission does not
4properly comply with the statutory or regulatory requirements
5of the Program, the Commission may require that the utility
6make modifications to its filing.
7    (g) An independent process evaluation shall be conducted
8after one year of the Program's operation. An independent
9impact evaluation shall be conducted after 3 years of
10operation, excluding one-time startup costs and results from
11the first 12 months of the Program. The Commission shall
12convene an advisory council of stakeholders, including
13representation of low-income and environmental justice
14community members to make recommendations in response to the
15findings of the independent evaluation.
16    (h) The Program shall be designed using the Pay As You Save
17system guidelines to be cost-effective for customers. Only
18projects that are deemed to be cost-effective and can be
19reasonably expected to ensure customer savings are eligible
20for funding through the Program, unless, as specified in
21paragraph (1) of subsection (c), customers able to make
22upfront copayments to installers buy down the cost of projects
23so it can be deemed cost-effective.
24    (i) Eligible customers must be:
25        (1) property renters with permission of the property
26    owner; or

 

 

10200HB3666sam001- 918 -LRB102 13525 AMC 28481 a

1        (2) property owners.
2    (j) The calculation of project cost-effectiveness shall be
3based upon the Pay As You Save system requirements.
4        (1) The calculation of cost-effectiveness must be
5    conducted by an objective process approved by the
6    Commission and based on rates in effect at the time of
7    installation.
8        (2) A project shall be considered cost-effective only
9    if it is estimated to produce significant immediate net
10    savings, not counting copayments voluntarily made by
11    customers. The Commission may establish guidelines by
12    which this required savings is estimated.
13    (k) The Program should be modeled after the Pay As You Save
14system, by which Program participants finance energy projects
15using the savings that the energy project creates with a
16tariffed on-bill program. Eligible projects shall not create
17personal debt for the customer, result in a lien in the event
18of nonpayment, or require customers to pay monthly charges for
19any upgrade that fails and is not repaired within 21 days. The
20utility may restart charges once the upgrade is repaired and
21functioning and extend the term of payments to recover its
22costs for missed payments and deferred cost recovery,
23providing the upgrade continues to function.
24    (l) Any energy project that is defective or damaged due to
25no fault of the participant must be either replaced or
26repaired with parts that meet industry standards at the cost

 

 

10200HB3666sam001- 919 -LRB102 13525 AMC 28481 a

1of the utility or vendor, as specified by the Commission, and
2charges shall be suspended until repairs or replacement is
3completed. The Commission may establish, increase, or replace
4the requirements imposed in this subsection. The Commission
5may determine that this responsibility is best handled by
6participating project vendors in the form of insurance,
7contractual guarantees, or other mechanisms, and issue rules
8detailing this requirement. Customers shall not be charged
9monthly payments for upgrades that are no longer functioning.
10    (m) In the event of nonpayment, the remaining balance due
11to pay off the system shall remain with the utility meter at an
12upgraded location. The Commission shall establish conditions
13subject to this constraint in the event of nonpayment that are
14in accordance with the Pay As You Save system.
15    (n) If the demand by utility customers exceeds the Program
16capital supply in a given year, utilities shall ensure that
1750% of participants are:
18        (1) customers in neighborhoods where a majority of
19    households make 150% or less of area median income; or
20        (2) residents of environmental justice communities.
21    (o) Utilities shall endeavor to inform customers about the
22availability of the Program, their potential eligibility for
23participation in the Program, and whether they are likely to
24save money on the basis of an estimate conducted using
25variables consistent with the Program that the utility has at
26its disposal. The Commission may establish guidelines by which

 

 

10200HB3666sam001- 920 -LRB102 13525 AMC 28481 a

1utilities must abide by this directive and alternatives if the
2Commission deems utilities' efforts as inadequate.
3    (p) Subject to Commission specifications under subsection
4(c), each utility shall work with certified project vendors
5selected using a request for proposals process to establish
6the terms and processes under which a utility can install
7eligible renewable energy generation and energy storage
8systems using the capital to fit the Equitable Energy Upgrade
9model. The certified project vendor shall explain and offer
10the approved upgrades to customers and shall assist customers
11in applying for financing through the Program. As part of the
12process, vendors shall also provide participants with
13information about any other relevant incentives that may be
14available.
15    (q) An electric utility shall recover all of the prudently
16incurred costs of offering a program approved by the
17Commission under this Section. For investor-owned utilities,
18shareholder incentives will be proportional to meeting
19Commission approved thresholds for the number of customers
20served and the amount of its investments in those locations.
21    (r) The Commission shall adopt all rules necessary for the
22administration of this Section.
 
23    (220 ILCS 5/16-127)
24    Sec. 16-127. Environmental disclosure.
25    (a) Every Effective January 1, 2013, every electric

 

 

10200HB3666sam001- 921 -LRB102 13525 AMC 28481 a

1utility and alternative retail electric supplier shall provide
2the following information, to the maximum extent practicable,
3to its customers on a quarterly basis:
4        (i) the known sources of electricity supplied,
5    broken-out by percentages, of biomass power, coal-fired
6    power, hydro power, natural gas-fired power, nuclear
7    power, oil-fired power, solar power, wind power and other
8    resources, respectively;
9        (ii) a pie chart that graphically depicts the
10    percentages of the sources of the electricity supplied as
11    set forth in subparagraph (i) of this subsection;
12        (iii) a pie chart that graphically depicts the
13    quantity of renewable energy resources procured pursuant
14    to Section 1-75 of the Illinois Power Agency Act as a
15    percentage of electricity supplied to serve eligible
16    retail customers as defined in Section 16-111.5(a) of this
17    Act; and
18        (iv) after May, 31, 2017, a pie chart that graphically
19    depicts the quantity of zero emission credits from zero
20    emission facilities procured under Section 1-75 of the
21    Illinois Power Agency Act as a percentage of the actual
22    load of retail customers within its service area and, for
23    an electric utility serving over 3,000,000 customers, the
24    quantity of carbon mitigation credits from carbon-free
25    energy resources procured under Section 1-75 of the
26    Illinois Power Agency Act, which may be depicted in

 

 

10200HB3666sam001- 922 -LRB102 13525 AMC 28481 a

1    combination with the zero emission credits procured.
2    (b) In addition, every electric utility and alternative
3retail electric supplier shall provide, to the maximum extent
4practicable, to its customers on a quarterly basis, a
5standardized chart in a format to be determined by the
6Commission in a rule following notice and hearings which
7provides the amounts of carbon dioxide, nitrogen oxides and
8sulfur dioxide emissions and nuclear waste attributable to the
9known sources of electricity supplied as set forth in
10subparagraph (i) of subsection (a) of this Section.
11    (c) The electric utilities and alternative retail electric
12suppliers may provide their customers with such other
13information as they believe relevant to the information
14required in subsections (a) and (b) of this Section. All of the
15information required in subsections (a) and (b) of this
16Section shall be made available by the electric utilities or
17alternative retail electric suppliers either in an electronic
18medium, such as on a website or by electronic mail, or through
19the U.S. Postal Service.
20    (d) For the purposes of subsection (a) of this Section,
21"biomass" means dedicated crops grown for energy production
22and organic wastes.
23    (e) All of the information provided in subsections (a) and
24(b) of this Section shall be presented to the Commission for
25inclusion in its World Wide Web Site.
26(Source: P.A. 99-906, eff. 6-1-17.)
 

 

 

10200HB3666sam001- 923 -LRB102 13525 AMC 28481 a

1    (220 ILCS 5/16-135 new)
2    Sec. 16-135. Energy Storage Program.
3    (a) The Illinois General Assembly hereby finds and
4declares that:
5        (1) Energy storage systems provide opportunities to:
6            (A) reduce costs to ratepayers directly or
7        indirectly by avoiding or deferring the need for
8        investment in new generation and for upgrades to
9        systems for the transmission and distribution of
10        electricity;
11            (B) reduce the use of fossil fuels for meeting
12        demand during peak load periods;
13            (C) provide ancillary services such as frequency
14        response, load following, and voltage support;
15            (D) assist electric utilities with integrating
16        sources of renewable energy into the grid for the
17        transmission and distribution of electricity, and with
18        maintaining grid stability;
19            (E) support diversification of energy resources;
20            (F) enhance the resilience and reliability of the
21        electric grid; and
22            (G) reduce greenhouse gas emissions and other air
23        pollutants resulting from power generation, thereby
24        minimizing public health impacts that result from
25        power generation.

 

 

10200HB3666sam001- 924 -LRB102 13525 AMC 28481 a

1        (2) There are significant barriers to obtaining the
2    benefits of energy storage systems, including inadequate
3    valuation of the services that energy storage can provide
4    to the grid and the public.
5        (3) It is in the public interest to:
6            (A) develop a robust competitive market for
7        existing and new providers of energy storage systems
8        in order to leverage Illinois' position as a leader in
9        advanced energy and to capture the potential for
10        economic development;
11            (B) implement targets and programs to achieve
12        deployment of energy storage systems; and
13            (C) modernize distributed energy resource programs
14        and interconnection standards to lower costs and
15        efficiently deploy energy storage systems in order to
16        increase economic development and job creation within
17        the state's clean energy economy.
18    (b) In this Section:
19    "Energy storage peak standard" means a percentage of
20annual retail electricity sales during peak hours that an
21electric utility must derive from electricity discharged from
22eligible energy storage systems.
23    "Deployment" means the installation of energy storage
24systems through a variety of mechanisms, including utility
25procurement, customer installation, or other processes.
26    "Electric utility" has the same meaning as provided in

 

 

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1Section 16-102 of this Act.
2    "Energy storage system" means a technology that is capable
3of absorbing zero-carbon energy, storing it for a period of
4time, and redelivering that energy after it has been stored in
5order to provide direct or indirect benefits to the broader
6electricity system. The term includes, but is not limited to,
7electrochemical, thermal, and electromechanical technologies.
8    "Nonwires alternatives solicitation" means a utility
9solicitation for third-party-owned or utility-owned
10distributed energy resources that uses nontraditional
11solutions to defer or replace planned investment on the
12distribution or transmission system.
13    "Total peak demand" means the highest hourly electricity
14demand for an electric utility in a given year, measured in
15megawatts, from all of the electric utility's customers of
16distribution service.
17    (c) The Commission, in consultation with the Illinois
18Power Agency, shall initiate a proceeding to examine specific
19programs, mechanisms, and policies that could support the
20deployment of energy storage systems. The Illinois Commerce
21Commission shall engage a broad group of Illinois
22stakeholders, including electric utilities, the energy storage
23industry, the renewable energy industry, and others to inform
24the proceeding. The proceeding must, at minimum:
25        (1) develop a framework to identify and measure the
26    potential costs, benefits, that deployment of energy

 

 

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1    storage could produce, as well as barriers to realizing
2    such benefits, including, but not limited to:
3            (A) avoided cost and deferred investments in
4        generation, transmission, and distribution facilities;
5            (B) reduced ancillary services costs;
6            (C) reduced transmission and distribution
7        congestion;
8            (D) lower peak power costs and reduced capacity
9        costs;
10            (E) reduced costs for emergency power supplies
11        during outages;
12            (F) reduced curtailment of renewable energy
13        generators;
14            (G) reduced greenhouse gas emissions and other
15        criteria air pollutants;
16            (H) increased grid hosting capacity of renewable
17        energy generators that produce energy on an
18        intermittent basis;
19            (I) increased reliability and resilience of the
20        electric grid;
21            (J) reduced line losses;
22            (K) increased resource diversification;
23            (L) increased economic development;
24        (2) analyze and estimate:
25            (A) the impact on the system's ability to
26        integrate renewable resources;

 

 

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1            (B) the benefits of addition of storage at
2        specific locations, such as at existing peaking units
3        or locations on the grid close to large load centers;
4            (C) the impact on grid reliability and power
5        quality; and
6            (D) the effect on retail electric rates and supply
7        rates over the useful life of a given energy storage
8        system; and
9        (3) Evaluate and identify cost-effective policies and
10    programs to support the deployment of energy storage
11    systems, including, but not limited to:
12            (A) incentive programs;
13            (B) energy storage peak standards;
14            (C) nonwires alternative solicitation;
15            (D) peak demand reduction programs for
16        behind-the-meter storage for all customer classes;
17            (E) value of distributed energy resources
18        programs;
19            (F) tax incentives;
20            (G) time-varying rates;
21            (H) updating of interconnection processes and
22        metering standards; and
23            (I) procurement by the Illinois Power Agency of
24        energy storage resources.
25    (d) The Commission shall, no later than May 31, 2022,
26submit to the General Assembly and the Governor any

 

 

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1recommendations for additional legislative, regulatory, or
2executive actions based on the findings of the proceeding.
3    (e) At the conclusion of the proceeding required under
4subsection (c), the Commission shall consider and recommend to
5the Governor and General Assembly energy storage deployment
6targets, if any, for each electric utility that serves more
7than 200,000 customers to be achieved by December 31, 2032,
8including recommended interim targets.
9    (f) In setting recommendations for energy storage
10deployment targets, the Commission shall:
11        (1) take into account the costs and benefits of
12    procuring energy storage according to the framework
13    developed in the proceeding under subsection (c);
14        (2) consider establishing specific subcategories of
15    deployment of systems by point of interconnection or
16    application in addition to the 10% requirement for
17    behind-the-meter energy storage in item (D) of paragraph
18    (3) of subsection (c).
 
19    (220 ILCS 5/17-900 new)
20    Sec. 17-900. Customer self-generation of electricity.
21    (a) The General Assembly finds and declares that municipal
22systems and electric cooperatives shall continue to be
23governed by their respective governing bodies, but that such
24governing bodies should recognize and implement policies to
25provide the opportunity for their residential and small

 

 

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1commercial customers who wish to self-generate electricity and
2for reasonable credits to customers for excess electricity,
3balanced against the rights of the other non-self-generating
4customers. This includes creating consistent, fair policies
5that are accessible to all customers and transparent, fair
6processes for raising and addressing any concerns.
7    (b) Customers have the right to install renewable
8generating facilities to be located on the customer's premises
9or customer's side of the billing meter and that are intended
10primarily to offset the customer's own electrical requirements
11and produce, consume, and store their own renewable energy
12without discriminatory repercussions from an electric
13cooperative or municipal system. This includes a customer's
14rights to:
15        (1) generate, consume, and deliver excess renewable
16    energy to the distribution grid and reduce his or her use
17    of electricity obtained from the grid;
18        (2) use technology to store energy at his or her
19    residence;
20        (3) interconnect his or her electrical system that
21    generates renewable energy, stores energy, or any
22    combination thereof, with the electricity meter on the
23    customer's premises that is provided by an electric
24    cooperative or municipal system:
25            (A) in a timely manner;
26            (B) in accordance with requirements established by

 

 

10200HB3666sam001- 930 -LRB102 13525 AMC 28481 a

1        the electric cooperative or municipal utility to
2        ensure the safety of utility workers; and
3            (C) after providing written notice to the electric
4        cooperative or municipal utility system providing
5        service in the service territory, installing a
6        nomenclature plate on the electrical meter panel and
7        meeting all applicable State and local safety and
8        electrical code requirements associated with
9        installing a parallel distributed generation system;
10        and
11        (4) receive fair credit for excess energy delivered to
12    the distribution grid.
13    (c) The policies of municipal systems and electric
14cooperatives regarding self-generation and credits for excess
15electricity may reasonably differ from those required of other
16entities by Article XVI of the Public Utilities Act or other
17Acts. The credits must recognize the value of self-generation
18to the distribution grid and benefits to other customers.
19    (d) Within 180 days after this amendatory Act of the 102nd
20General Assembly, each electric cooperative and municipal
21system shall update its policies for the interconnection and
22fair crediting of customer self-generation and storage if
23necessary, to comply with the standards of subsection (b) of
24this Section. Each electric cooperative and municipal system
25shall post its updated policies to a public-facing area of its
26website.

 

 

10200HB3666sam001- 931 -LRB102 13525 AMC 28481 a

1    (e) An electric cooperative or municipal system customer
2who produces, consumes, and stores his or her own renewable
3energy shall not face discriminatory rate design, fees or
4charges, treatment, or excessive compliance requirements that
5would unreasonably affect that customer's right to
6self-generate electricity as provided for in this Section.
7    (f) An electric cooperative or municipal utility system
8customer shall have a right to appeal any decision related to
9self-generation and storage that violates these rights to
10self-generation and non-discrimination pursuant to the
11provisions of this Section through a complaint under the
12Administrative Review Law or similar legal process.
 
13    Section 90-52. If and only if Senate Bill 2017 of the 102nd
14General Assembly becomes law in the form in which it passed
15both houses on June 1, 2021, then the Energy Assistance Act is
16amended by changing Sections 13 and 18 as follows:
 
17    (305 ILCS 20/13)
18    (Section scheduled to be repealed on January 1, 2025)
19    Sec. 13. Supplemental Low-Income Energy Assistance Fund.
20    (a) The Supplemental Low-Income Energy Assistance Fund is
21hereby created as a special fund in the State Treasury.
22Notwithstanding any other law to the contrary, the
23Supplemental Low-Income Energy Assistance Fund is not subject
24to sweeps, administrative charge-backs, or any other fiscal or

 

 

10200HB3666sam001- 932 -LRB102 13525 AMC 28481 a

1budgetary maneuver that would in any way transfer any amounts
2from the Supplemental Low-Income Energy Assistance Fund into
3any other fund of the State. The Supplemental Low-Income
4Energy Assistance Fund is authorized to receive moneys from
5voluntary donations from individuals, foundations,
6corporations, and other sources, moneys received pursuant to
7Section 17, and, by statutory deposit, the moneys collected
8pursuant to this Section. The Fund is also authorized to
9receive voluntary donations from individuals, foundations,
10corporations, and other sources. Subject to appropriation, the
11Department shall use moneys from the Supplemental Low-Income
12Energy Assistance Fund for payments to electric or gas public
13utilities, municipal electric or gas utilities, and electric
14cooperatives on behalf of their customers who are participants
15in the program authorized by Sections 4 and 18 of this Act, for
16the provision of weatherization services and for
17administration of the Supplemental Low-Income Energy
18Assistance Fund. All other deposits outside of the Energy
19Assistance Charge as set forth in subsection (b) are not
20subject to the percentage restrictions related to
21administrative and weatherization expenses provided in this
22subsection. The yearly expenditures for weatherization may not
23exceed 10% of the amount collected during the year pursuant to
24this Section, except when unspent funds from the Supplemental
25Low-Income Energy Assistance Fund are reallocated from a
26previous year; any unspent balance of the 10% weatherization

 

 

10200HB3666sam001- 933 -LRB102 13525 AMC 28481 a

1allowance may be utilized for weatherization expenses in the
2year they are reallocated. The yearly administrative expenses
3of the Supplemental Low-Income Energy Assistance Fund may not
4exceed 13% of the amount collected during that year pursuant
5to this Section, except when unspent funds from the
6Supplemental Low-Income Energy Assistance Fund are reallocated
7from a previous year; any unspent balance of the 13%
8administrative allowance may be utilized for administrative
9expenses in the year they are reallocated. Of the 13%
10administrative allowance, no less than 8% shall be provided to
11Local Administrative Agencies for administrative expenses.
12    (b) Notwithstanding the provisions of Section 16-111 of
13the Public Utilities Act but subject to subsection (k) of this
14Section, each public utility, electric cooperative, as defined
15in Section 3.4 of the Electric Supplier Act, and municipal
16utility, as referenced in Section 3-105 of the Public
17Utilities Act, that is engaged in the delivery of electricity
18or the distribution of natural gas within the State of
19Illinois shall, effective January 1, 2022 2021, assess each of
20its customer accounts a monthly Energy Assistance Charge for
21the Supplemental Low-Income Energy Assistance Fund. The
22delivering public utility, municipal electric or gas utility,
23or electric or gas cooperative for a self-assessing purchaser
24remains subject to the collection of the fee imposed by this
25Section. The monthly charge shall be as follows:
26        (1) Base Energy Assistance Charge per month on each

 

 

10200HB3666sam001- 934 -LRB102 13525 AMC 28481 a

1    account for residential electrical service;
2        (2) Base Energy Assistance Charge per month on each
3    account for residential gas service;
4        (3) Ten times the Base Energy Assistance Charge per
5    month on each account for non-residential electric service
6    which had less than 10 megawatts of peak demand during the
7    previous calendar year;
8        (4) Ten times the Base Energy Assistance Charge per
9    month on each account for non-residential gas service
10    which had distributed to it less than 4,000,000 therms of
11    gas during the previous calendar year;
12        (5) Three hundred and seventy-five times the Base
13    Energy Assistance Charge per month on each account for
14    non-residential electric service which had 10 megawatts or
15    greater of peak demand during the previous calendar year;
16    and
17        (6) Three hundred and seventy-five times the Base
18    Energy Assistance Charge per month on each account for For
19    non-residential gas service which had 4,000,000 or more
20    therms of gas distributed to it during the previous
21    calendar year.
22    The Base Energy Assistance Charge shall be $0.48 per month
23for the calendar year beginning January 1, 2022 and shall
24increase by $0.16 per month for any calendar year, provided no
25less than 80% of the previous State fiscal year's available
26Supplemental Low-Income Energy Assistance Fund funding was

 

 

10200HB3666sam001- 935 -LRB102 13525 AMC 28481 a

1exhausted. The maximum Base Energy Assistance Charge shall not
2exceed $0.96 per month for any calendar year.
3    The incremental change to such charges imposed by Public
4Act 99-933 and this amendatory Act of the 102nd General
5Assembly shall not (i) be used for any purpose other than to
6directly assist customers and (ii) be applicable to utilities
7serving less than 100,000 25,000 customers in Illinois on
8January 1, 2021. The incremental change to such charges
9imposed by this amendatory Act of the 102nd General Assembly
10are intended to increase utilization of the Percentage of
11Income Payment Plan (PIPP or PIP Plan) and shall be applied
12such that PIP Plan enrollment is at least doubled, as compared
13to 2020 enrollment, by 2024.
14    In addition, electric and gas utilities have committed,
15and shall contribute, a one-time payment of $22 million to the
16Fund, within 10 days after the effective date of the tariffs
17established pursuant to Sections 16-111.8 and 19-145 of the
18Public Utilities Act to be used for the Department's cost of
19implementing the programs described in Section 18 of this
20amendatory Act of the 96th General Assembly, the Arrearage
21Reduction Program described in Section 18, and the programs
22described in Section 8-105 of the Public Utilities Act. If a
23utility elects not to file a rider within 90 days after the
24effective date of this amendatory Act of the 96th General
25Assembly, then the contribution from such utility shall be
26made no later than February 1, 2010.

 

 

10200HB3666sam001- 936 -LRB102 13525 AMC 28481 a

1    (c) For purposes of this Section:
2        (1) "residential electric service" means electric
3    utility service for household purposes delivered to a
4    dwelling of 2 or fewer units which is billed under a
5    residential rate, or electric utility service for
6    household purposes delivered to a dwelling unit or units
7    which is billed under a residential rate and is registered
8    by a separate meter for each dwelling unit;
9        (2) "residential gas service" means gas utility
10    service for household purposes distributed to a dwelling
11    of 2 or fewer units which is billed under a residential
12    rate, or gas utility service for household purposes
13    distributed to a dwelling unit or units which is billed
14    under a residential rate and is registered by a separate
15    meter for each dwelling unit;
16        (3) "non-residential electric service" means electric
17    utility service which is not residential electric service;
18    and
19        (4) "non-residential gas service" means gas utility
20    service which is not residential gas service.
21    (d) Within 30 days after the effective date of this
22amendatory Act of the 96th General Assembly, each public
23utility engaged in the delivery of electricity or the
24distribution of natural gas shall file with the Illinois
25Commerce Commission tariffs incorporating the Energy
26Assistance Charge in other charges stated in such tariffs,

 

 

10200HB3666sam001- 937 -LRB102 13525 AMC 28481 a

1which shall become effective no later than the beginning of
2the first billing cycle following such filing.
3    (e) The Energy Assistance Charge assessed by electric and
4gas public utilities shall be considered a charge for public
5utility service.
6    (f) By the 20th day of the month following the month in
7which the charges imposed by the Section were collected, each
8public utility, municipal utility, and electric cooperative
9shall remit to the Department of Revenue all moneys received
10as payment of the Energy Assistance Charge on a return
11prescribed and furnished by the Department of Revenue showing
12such information as the Department of Revenue may reasonably
13require; provided, however, that a utility offering an
14Arrearage Reduction Program or Supplemental Arrearage
15Reduction Program pursuant to Section 18 of this Act shall be
16entitled to net those amounts necessary to fund and recover
17the costs of such Programs as authorized by that Section that
18is no more than the incremental change in such Energy
19Assistance Charge authorized by Public Act 96-33. If a
20customer makes a partial payment, a public utility, municipal
21utility, or electric cooperative may elect either: (i) to
22apply such partial payments first to amounts owed to the
23utility or cooperative for its services and then to payment
24for the Energy Assistance Charge or (ii) to apply such partial
25payments on a pro-rata basis between amounts owed to the
26utility or cooperative for its services and to payment for the

 

 

10200HB3666sam001- 938 -LRB102 13525 AMC 28481 a

1Energy Assistance Charge.
2    If any payment provided for in this Section exceeds the
3distributor's liabilities under this Act, as shown on an
4original return, the Department may authorize the distributor
5to credit such excess payment against liability subsequently
6to be remitted to the Department under this Act, in accordance
7with reasonable rules adopted by the Department. If the
8Department subsequently determines that all or any part of the
9credit taken was not actually due to the distributor, the
10distributor's discount shall be reduced by an amount equal to
11the difference between the discount as applied to the credit
12taken and that actually due, and that distributor shall be
13liable for penalties and interest on such difference.
14    (g) The Department of Revenue shall deposit into the
15Supplemental Low-Income Energy Assistance Fund all moneys
16remitted to it in accordance with subsection (f) of this
17Section. The utilities shall coordinate with the Department to
18establish an equitable and practical methodology for
19implementing this subsection (g) beginning with the 2010
20program year.
21    (h) On or before December 31, 2002, the Department shall
22prepare a report for the General Assembly on the expenditure
23of funds appropriated from the Low-Income Energy Assistance
24Block Grant Fund for the program authorized under Section 4 of
25this Act.
26    (i) The Department of Revenue may establish such rules as

 

 

10200HB3666sam001- 939 -LRB102 13525 AMC 28481 a

1it deems necessary to implement this Section.
2    (j) The Department of Commerce and Economic Opportunity
3may establish such rules as it deems necessary to implement
4this Section.
5    (k) The charges imposed by this Section shall only apply
6to customers of municipal electric or gas utilities and
7electric or gas cooperatives if the municipal electric or gas
8utility or electric or gas cooperative makes an affirmative
9decision to impose the charge. If a municipal electric or gas
10utility or an electric cooperative makes an affirmative
11decision to impose the charge provided by this Section, the
12municipal electric or gas utility or electric cooperative
13shall inform the Department of Revenue in writing of such
14decision when it begins to impose the charge. If a municipal
15electric or gas utility or electric or gas cooperative does
16not assess this charge, the Department may not use funds from
17the Supplemental Low-Income Energy Assistance Fund to provide
18benefits to its customers under the program authorized by
19Section 4 of this Act.
20    In its use of federal funds under this Act, the Department
21may not cause a disproportionate share of those federal funds
22to benefit customers of systems which do not assess the charge
23provided by this Section.
24    This Section is repealed on January 1, 2025 unless renewed
25by action of the General Assembly.
26(Source: P.A. 99-457, eff. 1-1-16; 99-906, eff. 6-1-17;

 

 

10200HB3666sam001- 940 -LRB102 13525 AMC 28481 a

199-933, eff. 1-27-17; 100-863, eff. 8-14-18; 100-1171, eff.
21-4-19; 10200SB2017enr.)
 
3    (305 ILCS 20/18)
4    Sec. 18. Financial assistance; payment plans.
5    (a) The Percentage of Income Payment Plan (PIPP or PIP
6Plan) is hereby created as a mandatory bill payment assistance
7program for low-income residential customers of utilities
8serving more than 100,000 retail customers as of January 1,
92021 2009. The PIP Plan will:
10        (1) bring participants' gas and electric bills into
11    the range of affordability;
12        (2) provide incentives for participants to make timely
13    payments;
14        (3) encourage participants to reduce usage and
15    participate in conservation and energy efficiency measures
16    that reduce the customer's bill and payment requirements;
17    and
18        (4) identify participants whose homes are most in need
19    of weatherization; and .
20        (5) endeavor to maximize participation and spend at
21    least 80% of the funding available for the year.
22    (b) For purposes of this Section:
23        (1) "LIHEAP" means the energy assistance program
24    established under the Illinois Energy Assistance Act and
25    the Low-Income Home Energy Assistance Act of 1981.

 

 

10200HB3666sam001- 941 -LRB102 13525 AMC 28481 a

1        (2) "Plan participant" is an eligible participant who
2    is also eligible for the PIPP and who will receive either a
3    percentage of income payment credit under the PIPP
4    criteria set forth in this Act or a benefit pursuant to
5    Section 4 of this Act. Plan participants are a subset of
6    eligible participants.
7        (3) "Pre-program arrears" means the amount a plan
8    participant owes for gas or electric service at the time
9    the participant is determined to be eligible for the PIPP
10    or the program set forth in Section 4 of this Act.
11        (4) "Eligible participant" means any person who has
12    applied for, been accepted and is receiving residential
13    service from a gas or electric utility and who is also
14    eligible for LIHEAP or otherwise satisfies the eligibility
15    criteria set forth in paragraph (1) of subsection (c).
16    (c) The PIP Plan shall be administered as follows:
17        (1) The Department shall coordinate with Local
18    Administrative Agencies (LAAs), to determine eligibility
19    for the Illinois Low Income Home Energy Assistance Program
20    (LIHEAP) pursuant to the Energy Assistance Act, provided
21    that eligible income shall be no more than 150% of the
22    poverty level or 60% of the State median income, except
23    that for the period from the effective date of this
24    amendatory Act of the 101st General Assembly through June
25    30, 2021, eligible income shall be no more than 200% of the
26    poverty level. Applicants will be screened to determine

 

 

10200HB3666sam001- 942 -LRB102 13525 AMC 28481 a

1    whether the applicant's projected payments for electric
2    service or natural gas service over a 12-month period
3    exceed the criteria established in this Section. The
4    Department, in consultation with the Policy Advisory
5    Council, may adjust the percentage of poverty level
6    annually to determine income eligibility. To maintain the
7    financial integrity of the program, the Department may
8    limit eligibility to households with income below 125% of
9    the poverty level.
10        (2) The Department shall establish the percentage of
11    income formula to determine the amount of a monthly credit
12    for participants with eligible income based on poverty
13    level. , not to exceed $150 per month per household, not to
14    exceed $1,800 annually; however, for the period from the
15    effective date of this amendatory Act of the 101st General
16    Assembly through June 30, 2021, the monthly credit for
17    participants with eligible income over 100% of the poverty
18    level may be as much as $200 per month per household, not
19    to exceed $2,400 annually, and, the monthly credit for
20    participants with eligible income 100% or less of the
21    poverty level may be as much as $250 per month per
22    household, not to exceed $3,000 annually. Credits will be
23    applied to PIP Plan participants' utility bills based on
24    the portion of the bill that is the responsibility of the
25    participant provided that the percentage shall be no more
26    than a total of 6% of the relevant income for gas and

 

 

10200HB3666sam001- 943 -LRB102 13525 AMC 28481 a

1    electric utility bills combined, but in any event no less
2    than $10 per month, unless the household does not pay
3    directly for heat, in which case its payment shall be 2.4%
4    of income but in any event no less than $5 per month. The
5    Department, in consultation with the Policy Advisory
6    Council, may adjust such monthly credit amounts annually
7    and may establish a minimum credit amount based on the
8    cost of administering the program and may deny credits to
9    otherwise eligible participants if the cost of
10    administering the credit exceeds the actual amount of any
11    monthly credit to a participant. If the participant takes
12    both gas and electric service, 50% 66.67% of the credit
13    shall be allocated to the entity that provides the
14    participant's primary energy supply for heating. Each
15    participant shall enter into a levelized payment plan for,
16    as applicable, gas and electric service and such plans
17    shall be implemented by the utility so that a
18    participant's usage and required payments are reviewed and
19    adjusted regularly, but no more frequently than quarterly.
20    Nothing in this Section is intended to prohibit a
21    customer, who is otherwise eligible for LIHEAP, from
22    participating in the program described in Section 4 of
23    this Act. Eligible participants who receive such a benefit
24    shall be considered plan participants and shall be
25    eligible to participate in the Arrearage Reduction Program
26    described in item (5) of this subsection (c).

 

 

10200HB3666sam001- 944 -LRB102 13525 AMC 28481 a

1        (3) The Department shall remit, through the LAAs, to
2    the utility or participating alternative supplier that
3    portion of the plan participant's bill that is not the
4    responsibility of the participant. In the event that the
5    Department fails to timely remit payment to the utility,
6    the utility shall be entitled to recover all costs related
7    to such nonpayment through the automatic adjustment clause
8    tariffs established pursuant to Section 16-111.8 and
9    Section 19-145 of the Public Utilities Act. For purposes
10    of this item (3) of this subsection (c), payment is due on
11    the date specified on the participant's bill. The
12    Department, the Department of Revenue and LAAs shall adopt
13    processes that provide for the timely payment required by
14    this item (3) of this subsection (c).
15        (4) A plan participant is responsible for all actual
16    charges for utility service in excess of the PIPP credit.
17    Pre-program arrears that are included in the Arrearage
18    Reduction Program described in item (5) of this subsection
19    (c) shall not be included in the calculation of the
20    levelized payment plan. Emergency or crisis assistance
21    payments shall not affect the amount of any PIPP credit to
22    which a participant is entitled.
23        (5) Electric and gas utilities subject to this Section
24    shall implement an Arrearage Reduction Program (ARP) for
25    plan participants as follows: for each month that a plan
26    participant timely pays his or her utility bill, the

 

 

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1    utility shall apply a credit to a portion of the
2    participant's pre-program arrears, if any, equal to
3    one-twelfth of such arrearage provided that the total
4    amount of arrearage credits shall equal no more than
5    $1,000 annually for each participant for gas and no more
6    than $1,000 annually for each participant for electricity.
7    In the third year of the PIPP, the Department, in
8    consultation with the Policy Advisory Council established
9    pursuant to Section 5 of this Act, shall determine by rule
10    an appropriate per participant total cap on such amounts,
11    if any. Those plan participants participating in the ARP
12    shall not be subject to the imposition of any additional
13    late payment fees on pre-program arrears covered by the
14    ARP. In all other respects, the utility shall bill and
15    collect the monthly bill of a plan participant pursuant to
16    the same rules, regulations, programs and policies as
17    applicable to residential customers generally.
18    Participation in the Arrearage Reduction Program shall be
19    limited to the maximum amount of funds available as set
20    forth in subsection (f) of Section 13 of this Act. In the
21    event any donated funds under Section 13 of this Act are
22    specifically designated for the purpose of funding the
23    ARP, the Department shall remit such amounts to the
24    utilities upon verification that such funds are needed to
25    fund the ARP. Nothing in this Section shall preclude a
26    utility from continuing to implement, and apply credits

 

 

10200HB3666sam001- 946 -LRB102 13525 AMC 28481 a

1    under, an ARP in the event that the PIPP or LIHEAP is
2    suspended due to lack of funding such that the plan
3    participant does not receive a benefit under either the
4    PIPP or LIHEAP.
5        (5.5) In addition to the ARP described in paragraph
6    (5) of this subsection (c), utilities may also implement a
7    Supplemental Arrearage Reduction Program (SARP) for
8    eligible participants who are not able to become plan
9    participants due to PIPP timing or funding constraints. If
10    a utility elects to implement a SARP, it shall be
11    administered as follows: for each month that a SARP
12    participant timely pays his or her utility bill, the
13    utility shall apply a credit to a portion of the
14    participant's pre-program arrears, if any, equal to
15    one-twelfth of such arrearage, provided that the utility
16    may limit the total amount of arrearage credits to no more
17    than $1,000 annually for each participant for gas and no
18    more than $1,000 annually for each participant for
19    electricity. SARP participants shall not be subject to the
20    imposition of any additional late payment fees on
21    pre-program arrears covered by the SARP. In all other
22    respects, the utility shall bill and collect the monthly
23    bill of a SARP participant under the same rules,
24    regulations, programs, and policies as applicable to
25    residential customers generally. Participation in the SARP
26    shall be limited to the maximum amount of funds available

 

 

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1    as set forth in subsection (f) of Section 13 of this Act.
2    In the event any donated funds under Section 13 of this Act
3    are specifically designated for the purpose of funding the
4    SARP, the Department shall remit such amounts to the
5    utilities upon verification that such funds are needed to
6    fund the SARP.
7        (6) The Department may terminate a plan participant's
8    eligibility for the PIP Plan upon notification by the
9    utility that the participant's monthly utility payment is
10    more than 75 45 days past due. One-twelfth of a customer's
11    arrearage shall be deducted from the total arrearage owed
12    for each on-time payment made by the customer.
13        (7) The Department, in consultation with the Policy
14    Advisory Council, may adjust the number of PIP Plan
15    participants annually, if necessary, to match the
16    availability of funds. Any plan participant who qualifies
17    for a PIPP credit under a utility's PIPP shall be entitled
18    to participate in and receive a credit under such
19    utility's ARP for so long as such utility has ARP funds
20    available, regardless of whether the customer's
21    participation under another utility's PIPP or ARP has been
22    curtailed or limited because of a lack of funds.
23        (8) The Department shall fully implement the PIPP at
24    the earliest possible date it is able to effectively
25    administer the PIPP. Within 90 days of the effective date
26    of this amendatory Act of the 96th General Assembly, the

 

 

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1    Department shall, in consultation with utility companies,
2    participating alternative suppliers, LAAs and the Illinois
3    Commerce Commission (Commission), issue a detailed
4    implementation plan which shall include detailed testing
5    protocols and analysis of the capacity for implementation
6    by the LAAs and utilities. Such consultation process also
7    shall address how to implement the PIPP in the most
8    cost-effective and timely manner, and shall identify
9    opportunities for relying on the expertise of utilities,
10    LAAs and the Commission. Following the implementation of
11    the testing protocols, the Department shall issue a
12    written report on the feasibility of full or gradual
13    implementation. The PIPP shall be fully implemented by
14    September 1, 2011, but may be phased in prior to that date.
15        (9) As part of the screening process established under
16    item (1) of this subsection (c), the Department and LAAs
17    shall assess whether any energy efficiency or demand
18    response measures are available to the plan participant at
19    no cost, and if so, the participant shall enroll in any
20    such program for which he or she is eligible. The LAAs
21    shall assist the participant in the applicable enrollment
22    or application process.
23        (10) Each alternative retail electric and gas supplier
24    serving residential customers shall elect whether to
25    participate in the PIPP or ARP described in this Section.
26    Any such supplier electing to participate in the PIPP

 

 

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1    shall provide to the Department such information as the
2    Department may require, including, without limitation,
3    information sufficient for the Department to determine the
4    proportionate allocation of credits between the
5    alternative supplier and the utility. If a utility in
6    whose service territory an alternative supplier serves
7    customers contributes money to the ARP fund which is not
8    recovered from ratepayers, then an alternative supplier
9    which participates in ARP in that utility's service
10    territory shall also contribute to the ARP fund in an
11    amount that is commensurate with the number of alternative
12    supplier customers who elect to participate in the
13    program.
14        (11) The PIPP shall be designed and implemented each
15    year to maximize participation and spend at least 80% of
16    the funding available for the year.
17    (d) The Department, in consultation with the Policy
18Advisory Council, shall develop and implement a program to
19educate customers about the PIP Plan and about their rights
20and responsibilities under the percentage of income component.
21The Department, in consultation with the Policy Advisory
22Council, shall establish a process that LAAs shall use to
23contact customers in jeopardy of losing eligibility due to
24late payments. The Department shall ensure that LAAs are
25adequately funded to perform all necessary educational tasks.
26    (e) The PIPP shall be administered in a manner which

 

 

10200HB3666sam001- 950 -LRB102 13525 AMC 28481 a

1ensures that credits to plan participants will not be counted
2as income or as a resource in other means-tested assistance
3programs for low-income households or otherwise result in the
4loss of federal or State assistance dollars for low-income
5households.
6    (f) In order to ensure that implementation costs are
7minimized, the Department and utilities shall work together to
8identify cost-effective ways to transfer information
9electronically and to employ available protocols that will
10minimize their respective administrative costs as follows:
11        (1) The Commission may require utilities to provide
12    such information on customer usage and billing and payment
13    information as required by the Department to implement the
14    PIP Plan and to provide written notices and communications
15    to plan participants.
16        (2) Each utility and participating alternative
17    supplier shall file annual reports with the Department and
18    the Commission that cumulatively summarize and update
19    program information as required by the Commission's rules.
20    The reports shall track implementation costs and contain
21    such information as is necessary to evaluate the success
22    of the PIPP.
23        (2.5) The Department shall annually prepare and submit
24    a report to the General Assembly, the Commission, and the
25    Policy Advisory Council that identifies the following
26    amounts for the most recently completed year: total monies

 

 

10200HB3666sam001- 951 -LRB102 13525 AMC 28481 a

1    collected under subsection (b) of Section 13 of this Act
2    for all PIPPs implemented in the State; monies allocated
3    to each utility for implementation of its PIPP; and monies
4    allocated to each utility for other purposes, including a
5    description of each of those purposes. The Commission
6    shall publish the report on its website.
7        (3) The Department and the Commission shall have the
8    authority to promulgate rules and regulations necessary to
9    execute and administer the provisions of this Section.
10    (g) Each utility shall be entitled to recover reasonable
11administrative and operational costs incurred to comply with
12this Section from the Supplemental Low Income Energy
13Assistance Fund. The utility may net such costs against monies
14it would otherwise remit to the Funds, and each utility shall
15include in the annual report required under subsection (f) of
16this Section an accounting for the funds collected.
17(Source: P.A. 101-636, eff. 6-10-20.)
 
18    Section 90-55. The Environmental Protection Act is amended
19by adding Sections 3.131 and 9.18 and by changing Sections
209.15 and 22.59 as follows:
 
21    (415 ILCS 5/3.131 new)
22    Sec. 3.131. Clean energy. "Clean energy" means energy
23generation that is substantially free (90% or greater) of
24carbon dioxide emissions.
 

 

 

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1    (415 ILCS 5/9.15)
2    Sec. 9.15. Greenhouse gases.
3    (a) An air pollution construction permit shall not be
4required due to emissions of greenhouse gases if the
5equipment, site, or source is not subject to regulation, as
6defined by 40 CFR 52.21, as now or hereafter amended, for
7greenhouse gases or is otherwise not addressed by the Board in
8regulations for greenhouse gases. These exemptions do . This
9exemption does not relieve an owner or operator from the
10obligation to comply with other applicable rules or
11regulations.
12    (b) An air pollution operating permit shall not be
13required due to emissions of greenhouse gases if the
14equipment, site, or source is not subject to regulation, as
15defined by Section 39.5 of this Act, for greenhouse gases or is
16otherwise not addressed by the Board in regulations for
17greenhouse gases. These exemptions do . This exemption does not
18relieve an owner or operator from the obligation to comply
19with other applicable rules or regulations.
20    (c) (Blank). Notwithstanding any provision to the contrary
21in this Section, an air pollution construction or operating
22permit shall not be required due to emissions of greenhouse
23gases if any of the following events occur:
24        (1) enactment of federal legislation depriving the
25    Administrator of the USEPA of authority to regulate

 

 

10200HB3666sam001- 953 -LRB102 13525 AMC 28481 a

1    greenhouse gases under the Clean Air Act;
2        (2) the issuance of any opinion, ruling, judgment,
3    order, or decree by a federal court depriving the
4    Administrator of the USEPA of authority to regulate
5    greenhouse gases under the Clean Air Act; or
6        (3) action by the President of the United States or
7    the President's authorized agent, including the
8    Administrator of the USEPA, to repeal or withdraw the
9    Greenhouse Gas Tailoring Rule (75 Fed. Reg. 31514, June 3,
10    2010).
11    This subsection (c) does not relieve an owner or operator
12from the obligation to comply with applicable rules or
13regulations other than those relating to greenhouse gases.
14    (d) (Blank). If any event listed in subsection (c) of this
15Section occurs, permits issued after such event shall not
16impose permit terms or conditions addressing greenhouse gases
17during the effectiveness of any event listed in subsection
18(c).
19    (e) (Blank). If an event listed in subsection (c) of this
20Section occurs, any owner or operator with a permit that
21includes terms or conditions addressing greenhouse gases may
22elect to submit an application to the Agency to address a
23revision or repeal of such terms or conditions. The Agency
24shall expeditiously process such permit application in
25accordance with applicable laws and regulations.
26    (f) As used in this Section:

 

 

10200HB3666sam001- 954 -LRB102 13525 AMC 28481 a

1    "Carbon dioxide emission" means the plant annual CO2 total
2output emission as measured by the United States Environmental
3Protection Agency in its Emissions & Generation Resource
4Integrated Database (eGrid).
5    "Carbon dioxide equivalent emissions" or "CO2e" means the
6sum total of the mass amount of emissions in tons per year,
7calculated by multiplying the mass amount of each of the 6
8greenhouse gases specified in Section 3.207, in tons per year,
9by its associated global warming potential as set forth in 40
10CFR 98, subpart A, table A-1 or its successor, and then adding
11them all together.
12    "Cogeneration" or "combined heat and power" refers to any
13system that, either simultaneously or sequentially, produces
14electricity and useful thermal energy from a single fuel
15source.
16    "Copollutants" refers to the 6 criteria pollutants that
17have been identified by the United States Environmental
18Protection Agency pursuant to the Clean Air Act.
19    "Electric generating unit" or "EGU" means a fossil
20fuel-fired stationary boiler, combustion turbine, or combined
21cycle system that serves as a generator that has a nameplate
22capacity greater than 25 MWe and produces electricity for
23sale.
24    "Environmental justice community" means the definition of
25that term based on existing methodologies and findings, used
26and as may be updated by the Illinois Power Agency and its

 

 

10200HB3666sam001- 955 -LRB102 13525 AMC 28481 a

1program administrator in the Illinois Solar for All Program.
2    "Equity investment eligible community" or "eligible
3community" means the geographic areas throughout Illinois that
4would most benefit from equitable investments by the State
5designed to combat discrimination and foster sustainable
6economic growth. Specifically, eligible community means the
7following areas:
8        (1) areas where residents have been historically
9    excluded from economic opportunities, including
10    opportunities in the energy sector, as defined as R3 areas
11    pursuant to Section 10-40 of the Cannabis Regulation and
12    Tax Act; and
13        (2) areas where residents have been historically
14    subject to disproportionate burdens of pollution,
15    including pollution from the energy sector, as established
16    by environmental justice communities as defined by the
17    Illinois Power Agency pursuant to the Illinois Power
18    Agency Act, excluding any racial or ethnic indicators.
19    "Equity investment eligible person" or "eligible person"
20means the persons who would most benefit from equitable
21investments by the State designed to combat discrimination and
22foster sustainable economic growth. Specifically, eligible
23person means the following people:
24        (1) persons whose primary residence is in an equity
25    investment eligible community;
26        (2) persons whose primary residence is in a

 

 

10200HB3666sam001- 956 -LRB102 13525 AMC 28481 a

1    municipality, or a county with a population under 100,000,
2    where the closure of an electric generating unit or mine
3    has been publicly announced or the electric generating
4    unit or mine is in the process of closing or closed within
5    the last 5 years;
6        (3) persons who are graduates of or currently enrolled
7    in the foster care system; or
8        (4) persons who were formerly incarcerated.
9    "Green hydrogen" means a power plant technology in which
10an EGU creates electric power exclusively from electrolytic
11hydrogen, in a manner that produces zero carbon and
12copollutant emissions, using hydrogen fuel that is
13electrolyzed using a 100% renewable zero carbon emission
14energy source.
15    "Large greenhouse gas-emitting unit" or "large
16GHG-emitting unit" means a unit that is an electric generating
17unit or other fossil fuel-fired unit that itself has a
18nameplate capacity or serves a generator that has a nameplate
19capacity greater than 25 MWe and that produces electricity,
20including, but not limited to, coal-fired, coal-derived,
21oil-fired, natural gas-fired, and cogeneration units.
22    "NOx emission rate" means the "plant annual NOx total
23output emission rate" as measured by the United States
24Environmental Protection Agency in its Emissions & Generation
25Resource Integrated Database (eGrid), in the most recent year
26for which data is available.

 

 

10200HB3666sam001- 957 -LRB102 13525 AMC 28481 a

1    "Public greenhouse gas-emitting units" or "public
2GHG-emitting unit" means large greenhouse gas-emitting units,
3including EGUs, that are wholly owned, directly or indirectly,
4by one or more municipalities, municipal corporations, joint
5municipal electric power agencies, electric cooperatives, or
6other governmental or nonprofit entities, whether organized
7and created under the laws of Illinois or another state.
8    "SO2 emission rate" means the "plant annual SO2 total
9output emission rate" as measured by the United States
10Environmental Protection Agency in its Emissions & Generation
11Resource Integrated Database (eGrid), in the most recent year
12for which data is available.
13    (g) All EGUs and large greenhouse gas-emitting units that
14use coal or oil as a fuel and are not public GHG-emitting units
15shall permanently reduce all CO2e and copollutant emissions to
16zero no later than January 1, 2030.
17    (h) All public GHG-emitting units that use coal as a fuel
18source shall reduce carbon dioxide emissions by 105% of the
19unit's 2021 annual carbon emission amount. At least 95% of the
20carbon dioxide emission reductions shall be attained through
21carbon capture and sequestration or unit retirement by 2045.
22The remainder of the total carbon dioxide emission reductions
23required by this subsection by 2045 and thereafter shall be
24attained through direct air carbon capture or any other
25available technology proven to directly remove carbon dioxide
26from the atmosphere. If a public GHG-emitting unit with less

 

 

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1than 700 megawatts of nameplate capacity attains 100% carbon
2dioxide emission reductions through unit retirement, it is
3exempt from the requirements of this subsection. All EGUs and
4large greenhouse gas-emitting units that use coal as a fuel
5and are public GHG-emitting units that are greater than 700
6megawatts of nameplate capacity shall:
7        (1) As of the effective date of this amendatory Act of
8    the 102nd General Assembly, be authorized to begin
9    purchasing renewable energy credits, without regard to the
10    commercial operations date of the resource and without
11    regard to the location of the resource, and carbon dioxide
12    offsets that may be retired in 2035 to meet the
13    requirements of paragraph (3).
14        (2) No later than January 1, 2027, file a plan with the
15    Illinois Power Agency, Illinois Commerce Commission, and
16    the Board describing the public GHG-emitting unit's plan,
17    including the means for achieving compliance and the
18    associated anticipated carbon dioxide emission reduction,
19    to meet the carbon emission reduction requirements under
20    this subsection. This plan should describe the public
21    GHG-emitting unit's plan to achieve 105% reduction of the
22    unit's 2019 annual carbon emission amount by 2045 and
23    maintain this net negative carbon emission for the life of
24    the unit. The public GHG-emitting unit shall use carbon
25    dioxide reduction credit accounting sourced from
26    technology commercially proven to reduce carbon emissions

 

 

10200HB3666sam001- 959 -LRB102 13525 AMC 28481 a

1    to meet the carbon dioxide reduction targets in paragraph
2    (3). For purposes of this subsection, "carbon dioxide
3    reduction credit accounting" includes the following
4    compliance measures: operational changes and efficiency
5    improvements, carbon capture, carbon utilization, carbon
6    storage, direct air capture, unit retirement, emission
7    control technology, purchase of renewable energy credits
8    by the public GHG-emitting unit or its owners from
9    anywhere in the continental United States, investment in
10    carbon offset credits that result in carbon dioxide or CO2e
11    emission reductions, investment in demand response,
12    investment in energy efficiency, or public electric
13    vehicle adoption incentives based on nationally recognized
14    standards to meet its carbon emission reduction
15    requirements. One renewable energy credit shall be
16    sufficient to offset the carbon dioxide emission of one
17    megawatt-hour of electricity generated by the public
18    GHG-emitting unit. For purposes of this paragraph,
19    "renewable energy credit" means a tradable credit that
20    represents the environmental attributes of one megawatt
21    hour of energy produced from a renewable energy resource.
22    Offset credits that are not renewable energy credits must
23    be unique, real, permanent, verified, and enforceable
24    reductions that are additional to standard business
25    practices, employ competent and reliable scientific and
26    accounting methods to quantify claimed emission

 

 

10200HB3666sam001- 960 -LRB102 13525 AMC 28481 a

1    reductions, and result from a specific activity or set of
2    activities that actually reduce greenhouse gas emissions,
3    increase the storage of carbon, or enhance greenhouse gas
4    removal from the atmosphere.
5        (3) No later than January 1, 2035, reduce carbon
6    dioxide emissions by 20% of the unit's 2021 annual carbon
7    emission amount through use of the carbon dioxide
8    reduction credit accounting compliance measures under
9    paragraph (2).
10        (4) No later than January 1, 2040, reduce carbon
11    dioxide emissions by 50% of the unit's 2021 annual carbon
12    emission amount. At least 45% of the carbon dioxide
13    emission reductions shall be attained through carbon
14    capture and sequestration or unit retirement. Up to 5% of
15    the carbon dioxide emission reductions shall be attained
16    through direct air carbon capture.
17    (i) All EGUs and large greenhouse gas-emitting units that
18use gas as a fuel and are not public GHG-emitting units shall
19permanently reduce all CO2e and copollutant emissions to zero,
20including through the use of 100% green hydrogen or other
21similar technology that is commercially proven to achieve zero
22carbon emissions, according to the following:
23        (1) No later than January 1, 2030: all EGUs and large
24    greenhouse gas-emitting units that have a NOx emissions
25    rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
26    greater than 0.006 lb/MWh, and are located in or within 3

 

 

10200HB3666sam001- 961 -LRB102 13525 AMC 28481 a

1    miles of an environmental justice community or an equity
2    investment eligible community.
3        (2) No later than January 1, 2035: all EGUs and large
4    greenhouse gas-emitting units that have a NOx emission
5    rate of greater than 0.12 lbs/MWh or a SO2 emission rate
6    greater than 0.006 lb/MWh, and are not located in or
7    within 3 miles of an environmental justice community or an
8    equity investment eligible community.
9        (3) No later than January 1, 2040: all EGUs and large
10    greenhouse gas-emitting units that began operation prior
11    to the effective date of this amendatory Act of the 102nd
12    General Assembly and have a NOx emission rate of less than
13    or equal to 0.12 lb/MWh and a SO2 emission rate less than
14    or equal to 0.006 lb/MWh, but not including any EGUs and
15    large greenhouse gas-emitting units that have a heat rate
16    less than or equal to 7000 BTU/kWh.
17        (4) No later than January 1, 2045: all remaining EGUs
18    and large greenhouse gas-emitting units that began
19    operation subsequent to the effective date of this
20    amendatory Act of the 102nd General Assembly and have a NOx
21    emission rate less than 0.12 lb/MWh and a SO2 emission rate
22    less than 0.006 lb/MWh.
23    (j) All EGUs and large greenhouse gas-emitting units that
24use gas as a fuel and are public GHG-emitting units shall
25permanently reduce all CO2e and copollutant emissions to zero,
26including through the use of 100% green hydrogen or other

 

 

10200HB3666sam001- 962 -LRB102 13525 AMC 28481 a

1similar technology that is commercially proven to achieve zero
2carbon emissions by January 1, 2045.
3    (k) All EGUs and large greenhouse gas-emitting units that
4utilize combined heat and power or cogeneration technology
5shall permanently reduce all CO2e and copollutant emissions to
6zero, including through the use of 100% green hydrogen or
7other similar technology that is commercially proven to
8achieve zero carbon emissions by January 1, 2045.
9    (l) Notwithstanding subsections (g) through (k), large
10GHG-emitting units including EGUs may temporarily continue
11emitting greenhouse gases after any applicable deadline
12specified in any of subsections (g) through (k) if it has been
13determined, as described in paragraphs (1) and (2) of this
14subsection, that ongoing operation of the EGU is necessary to
15maintain power grid supply and reliability or ongoing
16operation of large GHG-emitting unit that is not an EGU is
17necessary to serve as an emergency backup to operations. Up to
18and including the occurrence of an emission reduction deadline
19under subsection (i), all EGUs and large GHG-emitting units
20must comply with the following terms:
21        (1) if an EGU or large GHG-emitting unit that is a
22    participant in a regional transmission organization
23    intends to retire, it must submit documentation to the
24    appropriate regional transmission organization by the
25    appropriate deadline that meets all applicable regulatory
26    requirements necessary to obtain approval to permanently

 

 

10200HB3666sam001- 963 -LRB102 13525 AMC 28481 a

1    cease operating the large GHG-emitting unit;
2        (2) if any EGU or large GHG-emitting unit that is a
3    participant in a regional transmission organization
4    receives notice that the regional transmission
5    organization has determined that continued operation of
6    the unit is required, the unit may continue operating
7    until the issue identified by the regional transmission
8    organization is resolved. The owner or operator of the
9    unit must cooperate with the regional transmission
10    organization in resolving the issue and must reduce its
11    emissions to zero, consistent with the requirements under
12    subsection (g), (h), (i), (j), or (k), as applicable, as
13    soon as practicable when the issue identified by the
14    regional transmission organization is resolved; and
15        (3) any large GHG-emitting unit that is not a
16    participant in a regional transmission organization shall
17    be allowed to continue emitting greenhouse gases after the
18    zero-emission date specified in subsection (g), (h), (i),
19    (j), or (k), as applicable, in the capacity of an
20    emergency backup unit if approved by the Illinois Commerce
21    Commission.
22    (m) No variance, adjusted standard, or other regulatory
23relief otherwise available in this Act may be granted to the
24emissions reduction and elimination obligations in this
25Section.
26    (n) By June 30 of each year, beginning in 2025, the Agency

 

 

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1shall prepare and publish on its website a report setting
2forth the actual greenhouse gas emissions from individual
3units and the aggregate statewide emissions from all units for
4the prior year.
5    (o) Every 5 years beginning in 2025, the Environmental
6Protection Agency, Illinois Power Agency, and Illinois
7Commerce Commission shall jointly prepare, and release
8publicly, a report to the General Assembly that examines the
9State's current progress toward its renewable energy resource
10development goals, the status of CO2e and copollutant
11emissions reductions, the current status and progress toward
12developing and implementing green hydrogen technologies, the
13current and projected status of electric resource adequacy and
14reliability throughout the State for the period beginning 5
15years ahead, and proposed solutions for any findings. The
16report should also describe whether the emission reductions
17required by this Section will cause load serving entities in
18the State and regional transmission organizations to rely on
19energy generated out of State. The Environmental Protection
20Agency, Illinois Power Agency, and Illinois Commerce
21Commission shall consult PJM Interconnection, LLC and
22Midcontinent Independent System Operator, Inc., or their
23respective successor organizations regarding forecasted
24resource adequacy and reliability needs, anticipated new
25generation interconnection, new transmission development or
26upgrades, and any announced large GHG-emitting unit closure

 

 

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1dates and include this information in the report. The report
2shall be released publicly by no later than December 15 of the
3year it is prepared. If the Environmental Protection Agency,
4Illinois Power Agency, and Illinois Commerce Commission
5conclude the CO2e and copollutant emissions reductions
6required by subsection (i) reasonably demonstrate that a
7resource adequacy shortfall will occur, that the regional
8transmission operators determine that a reliability violation
9will occur, or that a potential to increase emissions by
10replacing generation with generation from a large GHG-emitting
11unit or units that produce more greenhouse gas emissions
12during the time frame the study is evaluating, then the
13Illinois Power Agency, in conjunction with the Environmental
14Protection Agency shall develop a plan to reduce or delay CO2e
15and copollutant emissions reductions requirement only to the
16extent and for the duration necessary to meet the resource
17adequacy and reliability needs of the State, including
18allowing any plants whose emission reduction deadline has been
19identified in the plan as creating a reliability concern to
20continue operating, including operating with reduced emissions
21or as emergency backup where appropriate.
22        (1) In developing the plan, the Environmental
23    Protection Agency and the Illinois Power Agency shall hold
24    at least one workshop open to the public and shall
25    consider any comments made by stakeholders or the public.
26    Upon development of the plan, copies of the plan shall be

 

 

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1    posted and made publicly available on the Environmental
2    Protection Agency's, the Illinois Power Agency's, and the
3    Illinois Commerce Commission's websites. All interested
4    parties shall have 60 days following the date of posting
5    to provide comment to the Environmental Protection Agency
6    and the Illinois Power Agency on the plan. All comments
7    submitted to the Environmental Protection Agency and the
8    Illinois Power Agency shall be specific, supported by data
9    or other detailed analyses, and, if objecting to all or a
10    portion of the plan, accompanied by specific alternative
11    wording or proposals. All comments shall be posted on the
12    Environmental Protection Agency's, the Illinois Power
13    Agency's, and the Illinois Commerce Commission's websites.
14    Within 30 days following the end of the 60-day review
15    period, the Environmental Protection Agency and the
16    Illinois Power Agency shall revise the plan as necessary
17    based on the comments received and file its revised plan
18    with the Illinois Commerce Commission for approval.
19        (2) Within 30 days after the filing of the revised
20    plan at the Illinois Commerce Commission, any person
21    objecting to the plan shall file an objection with the
22    Illinois Commerce Commission. Within 30 days after the
23    expiration of the comment period, the Illinois Commerce
24    Commission shall determine whether an evidentiary hearing
25    is necessary. The Illinois Commerce Commission shall also
26    host 3 public hearings within 90 days after the plan is

 

 

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1    filed. Following the evidentiary and public hearings, the
2    Illinois Commerce Commission shall enter its order
3    approving or approving with modifications the reliability
4    mitigation plan within 180 days.
5        (3) The Illinois Commerce Commission shall approve the
6    plan, if the Illinois Commerce Commission determines that
7    it will ensure adequate, reliable, affordable, efficient,
8    and environmentally sustainable electric service in the
9    form of at the lowest total cost over time, taking into
10    account any potential for increases in emissions.
11        (4) If the resource adequacy or reliability deficiency
12    identified in the reliability mitigation plan is resolved,
13    the Environmental Protection Agency and the Illinois Power
14    Agency may file an amended plan adjusting the reduction or
15    delay in CO2e and copollutant emission reduction
16    requirements identified in the plan.
17(Source: P.A. 97-95, eff. 7-12-11.)
 
18    (415 ILCS 5/9.18 new)
19    Sec. 9.18. Commission on market-based carbon pricing
20solutions.
21    (a) In the United States, state-based market policies to
22reduce greenhouse gases have been in operation since 2009.
23More than a quarter of the US population lives in a state with
24carbon pricing and these states represent one-third of the
25United States' gross domestic product. Market-based policies

 

 

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1have proved effective at reducing emissions in states across
2the United States, and around the world. Additionally,
3well-designed carbon pricing incentivizes energy efficiency
4and drives investments in low-carbon solutions and
5technologies, such as renewables, hydrogen, biofuels, and
6carbon capture, use, and storage. Illinois must assess
7available suites of programs and policies to support a rapid,
8economy-wide decarbonization and spur the development of a
9clean energy economy in the State, while maintaining Illinois'
10competitive advantage.
11    (b) The Governor is hereby authorized to create a carbon
12pricing commission to study the short-term and long-term
13impacts of joining, implementing, or designing a sector-based,
14statewide, or regional carbon pricing program. The commission
15shall analyze and compare the relative cost of, and greenhouse
16gas reductions from, various carbon pricing programs available
17to Illinois and the Midwest, including, but not limited to:
18the Regional Greenhouse Gas Initiative (RGGI), the
19Transportation and Climate Initiative (TCI), California's
20cap-and-trade program, California's low carbon fuel standard,
21Washington State's cap-and-invest program, the Oregon Clean
22Fuels Program, and other relevant market-based programs. At
23the conclusion of the study, no later than December 31, 2022,
24the commission shall issue a public report containing its
25findings.
26    (c) This Section is repealed on January 1, 2024.
 

 

 

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1    (415 ILCS 5/22.59)
2    Sec. 22.59. CCR surface impoundments.
3    (a) The General Assembly finds that:
4        (1) the State of Illinois has a long-standing policy
5    to restore, protect, and enhance the environment,
6    including the purity of the air, land, and waters,
7    including groundwaters, of this State;
8        (2) a clean environment is essential to the growth and
9    well-being of this State;
10        (3) CCR generated by the electric generating industry
11    has caused groundwater contamination and other forms of
12    pollution at active and inactive plants throughout this
13    State;
14        (4) environmental laws should be supplemented to
15    ensure consistent, responsible regulation of all existing
16    CCR surface impoundments; and
17        (5) meaningful participation of State residents,
18    especially vulnerable populations who may be affected by
19    regulatory actions, is critical to ensure that
20    environmental justice considerations are incorporated in
21    the development of, decision-making related to, and
22    implementation of environmental laws and rulemaking that
23    protects and improves the well-being of communities in
24    this State that bear disproportionate burdens imposed by
25    environmental pollution.

 

 

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1    Therefore, the purpose of this Section is to promote a
2healthful environment, including clean water, air, and land,
3meaningful public involvement, and the responsible disposal
4and storage of coal combustion residuals, so as to protect
5public health and to prevent pollution of the environment of
6this State.
7    The provisions of this Section shall be liberally
8construed to carry out the purposes of this Section.
9    (b) No person shall:
10        (1) cause or allow the discharge of any contaminants
11    from a CCR surface impoundment into the environment so as
12    to cause, directly or indirectly, a violation of this
13    Section or any regulations or standards adopted by the
14    Board under this Section, either alone or in combination
15    with contaminants from other sources;
16        (2) construct, install, modify, operate, or close any
17    CCR surface impoundment without a permit granted by the
18    Agency, or so as to violate any conditions imposed by such
19    permit, any provision of this Section or any regulations
20    or standards adopted by the Board under this Section; or
21        (3) cause or allow, directly or indirectly, the
22    discharge, deposit, injection, dumping, spilling, leaking,
23    or placing of any CCR upon the land in a place and manner
24    so as to cause or tend to cause a violation this Section or
25    any regulations or standards adopted by the Board under
26    this Section.

 

 

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1    (c) For purposes of this Section, a permit issued by the
2Administrator of the United States Environmental Protection
3Agency under Section 4005 of the federal Resource Conservation
4and Recovery Act, shall be deemed to be a permit under this
5Section and subsection (y) of Section 39.
6    (d) Before commencing closure of a CCR surface
7impoundment, in accordance with Board rules, the owner of a
8CCR surface impoundment must submit to the Agency for approval
9a closure alternatives analysis that analyzes all closure
10methods being considered and that otherwise satisfies all
11closure requirements adopted by the Board under this Act.
12Complete removal of CCR, as specified by the Board's rules,
13from the CCR surface impoundment must be considered and
14analyzed. Section 3.405 does not apply to the Board's rules
15specifying complete removal of CCR. The selected closure
16method must ensure compliance with regulations adopted by the
17Board pursuant to this Section.
18    (e) Owners or operators of CCR surface impoundments who
19have submitted a closure plan to the Agency before May 1, 2019,
20and who have completed closure prior to 24 months after July
2130, 2019 (the effective date of Public Act 101-171) this
22amendatory Act of the 101st General Assembly shall not be
23required to obtain a construction permit for the surface
24impoundment closure under this Section.
25    (f) Except for the State, its agencies and institutions, a
26unit of local government, or not-for-profit electric

 

 

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1cooperative as defined in Section 3.4 of the Electric Supplier
2Act, any person who owns or operates a CCR surface impoundment
3in this State shall post with the Agency a performance bond or
4other security for the purpose of: (i) ensuring closure of the
5CCR surface impoundment and post-closure care in accordance
6with this Act and its rules; and (ii) insuring remediation of
7releases from the CCR surface impoundment. The only acceptable
8forms of financial assurance are: a trust fund, a surety bond
9guaranteeing payment, a surety bond guaranteeing performance,
10or an irrevocable letter of credit.
11        (1) The cost estimate for the post-closure care of a
12    CCR surface impoundment shall be calculated using a
13    30-year post-closure care period or such longer period as
14    may be approved by the Agency under Board or federal
15    rules.
16        (2) The Agency is authorized to enter into such
17    contracts and agreements as it may deem necessary to carry
18    out the purposes of this Section. Neither the State, nor
19    the Director, nor any State employee shall be liable for
20    any damages or injuries arising out of or resulting from
21    any action taken under this Section.
22        (3) The Agency shall have the authority to approve or
23    disapprove any performance bond or other security posted
24    under this subsection. Any person whose performance bond
25    or other security is disapproved by the Agency may contest
26    the disapproval as a permit denial appeal pursuant to

 

 

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1    Section 40.
2    (g) The Board shall adopt rules establishing construction
3permit requirements, operating permit requirements, design
4standards, reporting, financial assurance, and closure and
5post-closure care requirements for CCR surface impoundments.
6Not later than 8 months after July 30, 2019 (the effective date
7of Public Act 101-171) this amendatory Act of the 101st
8General Assembly the Agency shall propose, and not later than
9one year after receipt of the Agency's proposal the Board
10shall adopt, rules under this Section. The Board shall not be
11deemed in noncompliance with the rulemaking deadline due to
12delays in adopting rules as a result of the Joint Commission on
13Administrative Rules oversight process. The rules must, at a
14minimum:
15        (1) be at least as protective and comprehensive as the
16    federal regulations or amendments thereto promulgated by
17    the Administrator of the United States Environmental
18    Protection Agency in Subpart D of 40 CFR 257 governing CCR
19    surface impoundments;
20        (2) specify the minimum contents of CCR surface
21    impoundment construction and operating permit
22    applications, including the closure alternatives analysis
23    required under subsection (d);
24        (3) specify which types of permits include
25    requirements for closure, post-closure, remediation and
26    all other requirements applicable to CCR surface

 

 

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1    impoundments;
2        (4) specify when permit applications for existing CCR
3    surface impoundments must be submitted, taking into
4    consideration whether the CCR surface impoundment must
5    close under the RCRA;
6        (5) specify standards for review and approval by the
7    Agency of CCR surface impoundment permit applications;
8        (6) specify meaningful public participation procedures
9    for the issuance of CCR surface impoundment construction
10    and operating permits, including, but not limited to,
11    public notice of the submission of permit applications, an
12    opportunity for the submission of public comments, an
13    opportunity for a public hearing prior to permit issuance,
14    and a summary and response of the comments prepared by the
15    Agency;
16        (7) prescribe the type and amount of the performance
17    bonds or other securities required under subsection (f),
18    and the conditions under which the State is entitled to
19    collect moneys from such performance bonds or other
20    securities;
21        (8) specify a procedure to identify areas of
22    environmental justice concern in relation to CCR surface
23    impoundments;
24        (9) specify a method to prioritize CCR surface
25    impoundments required to close under RCRA if not otherwise
26    specified by the United States Environmental Protection

 

 

10200HB3666sam001- 975 -LRB102 13525 AMC 28481 a

1    Agency, so that the CCR surface impoundments with the
2    highest risk to public health and the environment, and
3    areas of environmental justice concern are given first
4    priority;
5        (10) define when complete removal of CCR is achieved
6    and specify the standards for responsible removal of CCR
7    from CCR surface impoundments, including, but not limited
8    to, dust controls and the protection of adjacent surface
9    water and groundwater; and
10        (11) describe the process and standards for
11    identifying a specific alternative source of groundwater
12    pollution when the owner or operator of the CCR surface
13    impoundment believes that groundwater contamination on the
14    site is not from the CCR surface impoundment.
15    (h) Any owner of a CCR surface impoundment that generates
16CCR and sells or otherwise provides coal combustion byproducts
17pursuant to Section 3.135 shall, every 12 months, post on its
18publicly available website a report specifying the volume or
19weight of CCR, in cubic yards or tons, that it sold or provided
20during the past 12 months.
21    (i) The owner of a CCR surface impoundment shall post all
22closure plans, permit applications, and supporting
23documentation, as well as any Agency approval of the plans or
24applications on its publicly available website.
25    (j) The owner or operator of a CCR surface impoundment
26shall pay the following fees:

 

 

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1        (1) An initial fee to the Agency within 6 months after
2    July 30, 2019 (the effective date of Public Act 101-171)
3    this amendatory Act of the 101st General Assembly of:
4            $50,000 for each closed CCR surface impoundment;
5        and
6            $75,000 for each CCR surface impoundment that have
7        not completed closure.
8        (2) Annual fees to the Agency, beginning on July 1,
9    2020, of:
10            $25,000 for each CCR surface impoundment that has
11        not completed closure; and
12            $15,000 for each CCR surface impoundment that has
13        completed closure, but has not completed post-closure
14        care.
15    (k) All fees collected by the Agency under subsection (j)
16shall be deposited into the Environmental Protection Permit
17and Inspection Fund.
18    (l) The Coal Combustion Residual Surface Impoundment
19Financial Assurance Fund is created as a special fund in the
20State treasury. Any moneys forfeited to the State of Illinois
21from any performance bond or other security required under
22this Section shall be placed in the Coal Combustion Residual
23Surface Impoundment Financial Assurance Fund and shall, upon
24approval by the Governor and the Director, be used by the
25Agency for the purposes for which such performance bond or
26other security was issued. The Coal Combustion Residual

 

 

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1Surface Impoundment Financial Assurance Fund is not subject to
2the provisions of subsection (c) of Section 5 of the State
3Finance Act.
4    (m) The provisions of this Section shall apply, without
5limitation, to all existing CCR surface impoundments and any
6CCR surface impoundments constructed after July 30, 2019 (the
7effective date of Public Act 101-171) this amendatory Act of
8the 101st General Assembly, except to the extent prohibited by
9the Illinois or United States Constitutions.
10(Source: P.A. 101-171, eff. 7-30-19; revised 10-22-19.)
 
11    Section 90-60. The Illinois Worker Adjustment and
12Retraining Notification Act is amended by changing Section 10
13as follows:
 
14    (820 ILCS 65/10)
15    Sec. 10. Notice.
16    (a) An employer may not order a mass layoff, relocation,
17or employment loss unless, 60 days before the order takes
18effect, the employer gives written notice of the order to the
19following:
20        (1) affected employees and representatives of affected
21    employees; and
22        (2) the Department of Commerce and Economic
23    Opportunity and the chief elected official of each
24    municipal and county government within which the

 

 

10200HB3666sam001- 978 -LRB102 13525 AMC 28481 a

1    employment loss, relocation, or mass layoff occurs.
2    (a-5) An owner of an investor-owned electric generating
3plant or coal mining operation may not order a mass layoff,
4relocation, or employment loss unless, 2 years before the
5order takes effect, the employer gives written notice of the
6order to the following:
7        (1) affected employees and representatives of affected
8    employees; and
9        (2) the Department of Commerce and Economic
10    Opportunity and the chief elected official of each
11    municipal and county government within which the
12    employment loss, relocation, or mass layoff occurs.
13    (b) An employer required to give notice of any mass
14layoff, relocation, or employment loss under this Act shall
15include in its notice the elements required by the federal
16Worker Adjustment and Retraining Notification Act (29 U.S.C.
172101 et seq.).
18    (c) Notwithstanding the requirements of subsection (a), an
19employer is not required to provide notice if a mass layoff,
20relocation, or employment loss is necessitated by a physical
21calamity or an act of terrorism or war.
22    (d) The mailing of notice to an employee's last known
23address or inclusion of notice in the employee's paycheck
24shall be considered acceptable methods for fulfillment of the
25employer's obligation to give notice to each affected employee
26under this Act.

 

 

10200HB3666sam001- 979 -LRB102 13525 AMC 28481 a

1    (e) In the case of a sale of part or all of an employer's
2business, the seller shall be responsible for providing notice
3for any plant closing or mass layoff in accordance with this
4Section, up to and including the effective date of the sale.
5After the effective date of the sale of part or all of an
6employer's business, the purchaser shall be responsible for
7providing notice for any plant closing or mass layoff in
8accordance with this Section. Notwithstanding any other
9provision of this Act, any person who is an employee of the
10seller (other than a part-time employee) as of the effective
11date of the sale shall be considered an employee of the
12purchaser immediately after the effective date of the sale.
13    (f) An employer which is receiving State or local economic
14development incentives for doing or continuing to do business
15in this State may be required to provide additional notice
16pursuant to Section 15 of the Business Economic Support Act.
17    (g) The rights and remedies provided to employees by this
18Act are in addition to, and not in lieu of, any other
19contractual or statutory rights and remedies of the employees,
20and are not intended to alter or affect such rights and
21remedies, except that the period of notification required by
22this Act shall run concurrently with any period of
23notification required by contract or by any other law.
24    (h) It is the sense of the General Assembly that an
25employer who is not required to comply with the notice
26requirements of this Section should, to the extent possible,

 

 

10200HB3666sam001- 980 -LRB102 13525 AMC 28481 a

1provide notice to its employees about a proposal to close a
2plant or permanently reduce its workforce.
3(Source: P.A. 93-915, eff. 1-1-05.)
 
4
Article 99. Miscellaneous Provisions; Effective Date

 
5    Section 99-95. No acceleration or delay. Where this Act
6makes changes in a statute that is represented in this Act by
7text that is not yet or no longer in effect (for example, a
8Section represented by multiple versions), the use of that
9text does not accelerate or delay the taking effect of (i) the
10changes made by this Act or (ii) provisions derived from any
11other Public Act.
 
12    Section 99-97. Severability. The provisions of this Act
13are severable under Section 1.31 of the Statute on Statutes.
 
14    Section 99-99. Effective date. This Act takes effect upon
15becoming law.".