103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5054

 

Introduced 2/8/2024, by Rep. Lawrence "Larry" Walsh, Jr.

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-75
65 ILCS 5/11-13-26
505 ILCS 147/1
505 ILCS 147/5
505 ILCS 147/10
505 ILCS 147/15

    Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms.


LRB103 39370 JAG 69535 b

 

 

A BILL FOR

 

HB5054LRB103 39370 JAG 69535 b

1    AN ACT concerning agriculture.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-75 as follows:
 
6    (20 ILCS 3855/1-75)
7    Sec. 1-75. Planning and Procurement Bureau. The Planning
8and Procurement Bureau has the following duties and
9responsibilities:
10    (a) The Planning and Procurement Bureau shall each year,
11beginning in 2008, develop procurement plans and conduct
12competitive procurement processes in accordance with the
13requirements of Section 16-111.5 of the Public Utilities Act
14for the eligible retail customers of electric utilities that
15on December 31, 2005 provided electric service to at least
16100,000 customers in Illinois. Beginning with the delivery
17year commencing on June 1, 2017, the Planning and Procurement
18Bureau shall develop plans and processes for the procurement
19of zero emission credits from zero emission facilities in
20accordance with the requirements of subsection (d-5) of this
21Section. Beginning on the effective date of this amendatory
22Act of the 102nd General Assembly, the Planning and
23Procurement Bureau shall develop plans and processes for the

 

 

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1procurement of carbon mitigation credits from carbon-free
2energy resources in accordance with the requirements of
3subsection (d-10) of this Section. The Planning and
4Procurement Bureau shall also develop procurement plans and
5conduct competitive procurement processes in accordance with
6the requirements of Section 16-111.5 of the Public Utilities
7Act for the eligible retail customers of small
8multi-jurisdictional electric utilities that (i) on December
931, 2005 served less than 100,000 customers in Illinois and
10(ii) request a procurement plan for their Illinois
11jurisdictional load. This Section shall not apply to a small
12multi-jurisdictional utility until such time as a small
13multi-jurisdictional utility requests the Agency to prepare a
14procurement plan for their Illinois jurisdictional load. For
15the purposes of this Section, the term "eligible retail
16customers" has the same definition as found in Section
1716-111.5(a) of the Public Utilities Act.
18    Beginning with the plan or plans to be implemented in the
192017 delivery year, the Agency shall no longer include the
20procurement of renewable energy resources in the annual
21procurement plans required by this subsection (a), except as
22provided in subsection (q) of Section 16-111.5 of the Public
23Utilities Act, and shall instead develop a long-term renewable
24resources procurement plan in accordance with subsection (c)
25of this Section and Section 16-111.5 of the Public Utilities
26Act.

 

 

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1    In accordance with subsection (c-5) of this Section, the
2Planning and Procurement Bureau shall oversee the procurement
3by electric utilities that served more than 300,000 retail
4customers in this State as of January 1, 2019 of renewable
5energy credits from new utility-scale solar projects to be
6installed, along with energy storage facilities, at or
7adjacent to the sites of electric generating facilities that,
8as of January 1, 2016, burned coal as their primary fuel
9source.
10        (1) The Agency shall each year, beginning in 2008, as
11    needed, issue a request for qualifications for experts or
12    expert consulting firms to develop the procurement plans
13    in accordance with Section 16-111.5 of the Public
14    Utilities Act. In order to qualify an expert or expert
15    consulting firm must have:
16            (A) direct previous experience assembling
17        large-scale power supply plans or portfolios for
18        end-use customers;
19            (B) an advanced degree in economics, mathematics,
20        engineering, risk management, or a related area of
21        study;
22            (C) 10 years of experience in the electricity
23        sector, including managing supply risk;
24            (D) expertise in wholesale electricity market
25        rules, including those established by the Federal
26        Energy Regulatory Commission and regional transmission

 

 

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

 

 

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

 

 

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

 

 

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1conduct a competitive procurement process as prescribed in
2Section 16-111.5 of the Public Utilities Act, to ensure
3adequate, reliable, affordable, efficient, and environmentally
4sustainable electric service at the lowest total cost over
5time, taking into account any benefits of price stability, for
6eligible retail customers of electric utilities that on
7December 31, 2005 provided electric service to at least
8100,000 customers in the State of Illinois, and for eligible
9Illinois retail customers of small multi-jurisdictional
10electric utilities that (i) on December 31, 2005 served less
11than 100,000 customers in Illinois and (ii) request a
12procurement plan for their Illinois jurisdictional load.
13    (c) Renewable portfolio standard.
14        (1)(A) The Agency shall develop a long-term renewable
15    resources procurement plan that shall include procurement
16    programs and competitive procurement events necessary to
17    meet the goals set forth in this subsection (c). The
18    initial long-term renewable resources procurement plan
19    shall be released for comment no later than 160 days after
20    June 1, 2017 (the effective date of Public Act 99-906).
21    The Agency shall review, and may revise on an expedited
22    basis, the long-term renewable resources procurement plan
23    at least every 2 years, which shall be conducted in
24    conjunction with the procurement plan under Section
25    16-111.5 of the Public Utilities Act to the extent
26    practicable to minimize administrative expense. No later

 

 

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1    than 120 days after the effective date of this amendatory
2    Act of the 103rd General Assembly, the Agency shall
3    release for comment a revision to the long-term renewable
4    resources procurement plan, updating elements of the most
5    recently approved plan as needed to comply with this
6    amendatory Act of the 103rd General Assembly, and any
7    long-term renewable resources procurement plan update
8    published by the Agency but not yet approved by the
9    Illinois Commerce Commission shall be withdrawn. The
10    long-term renewable resources procurement plans shall be
11    subject to review and approval by the Commission under
12    Section 16-111.5 of the Public Utilities Act.
13        (B) Subject to subparagraph (F) of this paragraph (1),
14    the long-term renewable resources procurement plan shall
15    attempt to meet the goals for procurement of renewable
16    energy credits at levels of at least the following overall
17    percentages: 13% by the 2017 delivery year; increasing by
18    at least 1.5% each delivery year thereafter to at least
19    25% by the 2025 delivery year; increasing by at least 3%
20    each delivery year thereafter to at least 40% by the 2030
21    delivery year, and continuing at no less than 40% for each
22    delivery year thereafter. The Agency shall attempt to
23    procure 50% by delivery year 2040. The Agency shall
24    determine the annual increase between delivery year 2030
25    and delivery year 2040, if any, taking into account energy
26    demand, other energy resources, and other public policy

 

 

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1    goals. In the event of a conflict between these goals and
2    the new wind, new photovoltaic, and hydropower procurement
3    requirements described in items (i) through (iii) of
4    subparagraph (C) of this paragraph (1), the long-term plan
5    shall prioritize compliance with the new wind, new
6    photovoltaic, and hydropower procurement requirements
7    described in items (i) through (iii) of subparagraph (C)
8    of this paragraph (1) over the annual percentage targets
9    described in this subparagraph (B). The Agency shall not
10    comply with the annual percentage targets described in
11    this subparagraph (B) by procuring renewable energy
12    credits that are unlikely to lead to the development of
13    new renewable resources or new, modernized, or retooled
14    hydropower facilities.
15        For the delivery year beginning June 1, 2017, the
16    procurement plan shall attempt to include, subject to the
17    prioritization outlined in this subparagraph (B),
18    cost-effective renewable energy resources equal to at
19    least 13% of each utility's load for eligible retail
20    customers and 13% of the applicable portion of each
21    utility's load for retail customers who are not eligible
22    retail customers, which applicable portion shall equal 50%
23    of the utility's load for retail customers who are not
24    eligible retail customers on February 28, 2017.
25        For the delivery year beginning June 1, 2018, the
26    procurement plan shall attempt to include, subject to the

 

 

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1    prioritization outlined in this subparagraph (B),
2    cost-effective renewable energy resources equal to at
3    least 14.5% of each utility's load for eligible retail
4    customers and 14.5% of the applicable portion of each
5    utility's load for retail customers who are not eligible
6    retail customers, which applicable portion shall equal 75%
7    of the utility's load for retail customers who are not
8    eligible retail customers on February 28, 2017.
9        For the delivery year beginning June 1, 2019, and for
10    each year thereafter, the procurement plans shall attempt
11    to include, subject to the prioritization outlined in this
12    subparagraph (B), cost-effective renewable energy
13    resources equal to a minimum percentage of each utility's
14    load for all retail customers as follows: 16% by June 1,
15    2019; increasing by 1.5% each year thereafter to 25% by
16    June 1, 2025; and 25% by June 1, 2026; increasing by at
17    least 3% each delivery year thereafter to at least 40% by
18    the 2030 delivery year, and continuing at no less than 40%
19    for each delivery year thereafter. The Agency shall
20    attempt to procure 50% by delivery year 2040. The Agency
21    shall determine the annual increase between delivery year
22    2030 and delivery year 2040, if any, taking into account
23    energy demand, other energy resources, and other public
24    policy goals.
25        For each delivery year, the Agency shall first
26    recognize each utility's obligations for that delivery

 

 

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1    year under existing contracts. Any renewable energy
2    credits under existing contracts, including renewable
3    energy credits as part of renewable energy resources,
4    shall be used to meet the goals set forth in this
5    subsection (c) for the delivery year.
6        (C) The long-term renewable resources procurement plan
7    described in subparagraph (A) of this paragraph (1) shall
8    include the procurement of renewable energy credits from
9    new projects pursuant to the following terms:
10            (i) At least 10,000,000 renewable energy credits
11        delivered annually by the end of the 2021 delivery
12        year, and increasing ratably to reach 45,000,000
13        renewable energy credits delivered annually from new
14        wind and solar projects by the end of delivery year
15        2030 such that the goals in subparagraph (B) of this
16        paragraph (1) are met entirely by procurements of
17        renewable energy credits from new wind and
18        photovoltaic projects. Of that amount, to the extent
19        possible, the Agency shall procure 45% from wind and
20        hydropower projects and 55% from photovoltaic
21        projects. Of the amount to be procured from
22        photovoltaic projects, the Agency shall procure: at
23        least 50% from solar photovoltaic projects using the
24        program outlined in subparagraph (K) of this paragraph
25        (1) from distributed renewable energy generation
26        devices or community renewable generation projects; at

 

 

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1        least 47% from utility-scale solar projects; at least
2        3% from brownfield site photovoltaic projects that are
3        not community renewable generation projects.
4            In developing the long-term renewable resources
5        procurement plan, the Agency shall consider other
6        approaches, in addition to competitive procurements,
7        that can be used to procure renewable energy credits
8        from brownfield site photovoltaic projects and thereby
9        help return blighted or contaminated land to
10        productive use while enhancing public health and the
11        well-being of Illinois residents, including those in
12        environmental justice communities, as defined using
13        existing methodologies and findings used by the Agency
14        and its Administrator in its Illinois Solar for All
15        Program. The Agency shall also consider other
16        approaches, in addition to competitive procurements,
17        to procure renewable energy credits from new and
18        existing hydropower facilities to support the
19        development and maintenance of these facilities. The
20        Agency shall explore options to convert existing dams
21        but shall not consider approaches to develop new dams
22        where they do not already exist.
23            (ii) In any given delivery year, if forecasted
24        expenses are less than the maximum budget available
25        under subparagraph (E) of this paragraph (1), the
26        Agency shall continue to procure new renewable energy

 

 

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1        credits until that budget is exhausted in the manner
2        outlined in item (i) of this subparagraph (C).
3            (iii) For purposes of this Section:
4            "New wind projects" means wind renewable energy
5        facilities that are energized after June 1, 2017 for
6        the delivery year commencing June 1, 2017.
7            "New photovoltaic projects" means photovoltaic
8        renewable energy facilities that are energized after
9        June 1, 2017. Photovoltaic projects developed under
10        Section 1-56 of this Act shall not apply towards the
11        new photovoltaic project requirements in this
12        subparagraph (C).
13            For purposes of calculating whether the Agency has
14        procured enough new wind and solar renewable energy
15        credits required by this subparagraph (C), renewable
16        energy facilities that have a multi-year renewable
17        energy credit delivery contract with the utility
18        through at least delivery year 2030 shall be
19        considered new, however no renewable energy credits
20        from contracts entered into before June 1, 2021 shall
21        be used to calculate whether the Agency has procured
22        the correct proportion of new wind and new solar
23        contracts described in this subparagraph (C) for
24        delivery year 2021 and thereafter.
25        (D) Renewable energy credits shall be cost effective.
26    For purposes of this subsection (c), "cost effective"

 

 

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1    means that the costs of procuring renewable energy
2    resources do not cause the limit stated in subparagraph
3    (E) of this paragraph (1) to be exceeded and, for
4    renewable energy credits procured through a competitive
5    procurement event, do not exceed benchmarks based on
6    market prices for like products in the region. For
7    purposes of this subsection (c), "like products" means
8    contracts for renewable energy credits from the same or
9    substantially similar technology, same or substantially
10    similar vintage (new or existing), the same or
11    substantially similar quantity, and the same or
12    substantially similar contract length and structure.
13    Benchmarks shall reflect development, financing, or
14    related costs resulting from requirements imposed through
15    other provisions of State law, including, but not limited
16    to, requirements in subparagraphs (P) and (Q) of this
17    paragraph (1) and the Renewable Energy Facilities
18    Agricultural Impact Mitigation Act. Confidential
19    benchmarks shall be developed by the procurement
20    administrator, in consultation with the Commission staff,
21    Agency staff, and the procurement monitor and shall be
22    subject to Commission review and approval. If price
23    benchmarks for like products in the region are not
24    available, the procurement administrator shall establish
25    price benchmarks based on publicly available data on
26    regional technology costs and expected current and future

 

 

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

 

 

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1        Notwithstanding the requirements of this subsection
2    (c), the total of renewable energy resources procured
3    under the procurement plan for any single year shall be
4    subject to the limitations of this subparagraph (E). Such
5    procurement shall be reduced for all retail customers
6    based on the amount necessary to limit the annual
7    estimated average net increase due to the costs of these
8    resources included in the amounts paid by eligible retail
9    customers in connection with electric service to no more
10    than 4.25% of the amount paid per kilowatthour by those
11    customers during the year ending May 31, 2009. To arrive
12    at a maximum dollar amount of renewable energy resources
13    to be procured for the particular delivery year, the
14    resulting per kilowatthour amount shall be applied to the
15    actual amount of kilowatthours of electricity delivered,
16    or applicable portion of such amount as specified in
17    paragraph (1) of this subsection (c), as applicable, by
18    the electric utility in the delivery year immediately
19    prior to the procurement to all retail customers in its
20    service territory. The calculations required by this
21    subparagraph (E) shall be made only once for each delivery
22    year at the time that the renewable energy resources are
23    procured. Once the determination as to the amount of
24    renewable energy resources to procure is made based on the
25    calculations set forth in this subparagraph (E) and the
26    contracts procuring those amounts are executed, no

 

 

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1    subsequent rate impact determinations shall be made and no
2    adjustments to those contract amounts shall be allowed.
3    All costs incurred under such contracts shall be fully
4    recoverable by the electric utility as provided in this
5    Section.
6        (F) If the limitation on the amount of renewable
7    energy resources procured in subparagraph (E) of this
8    paragraph (1) prevents the Agency from meeting all of the
9    goals in this subsection (c), the Agency's long-term plan
10    shall prioritize compliance with the requirements of this
11    subsection (c) regarding renewable energy credits in the
12    following order:
13            (i) renewable energy credits under existing
14        contractual obligations as of June 1, 2021;
15            (i-5) funding for the Illinois Solar for All
16        Program, as described in subparagraph (O) of this
17        paragraph (1);
18            (ii) renewable energy credits necessary to comply
19        with the new wind and new photovoltaic procurement
20        requirements described in items (i) through (iii) of
21        subparagraph (C) of this paragraph (1); and
22            (iii) renewable energy credits necessary to meet
23        the remaining requirements of this subsection (c).
24        (G) The following provisions shall apply to the
25    Agency's procurement of renewable energy credits under
26    this subsection (c):

 

 

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1            (i) Notwithstanding whether a long-term renewable
2        resources procurement plan has been approved, the
3        Agency shall conduct an initial forward procurement
4        for renewable energy credits from new utility-scale
5        wind projects within 160 days after June 1, 2017 (the
6        effective date of Public Act 99-906). For the purposes
7        of this initial forward procurement, the Agency shall
8        solicit 15-year contracts for delivery of 1,000,000
9        renewable energy credits delivered annually from new
10        utility-scale wind projects to begin delivery on June
11        1, 2019, if available, but not later than June 1, 2021,
12        unless the project has delays in the establishment of
13        an operating interconnection with the applicable
14        transmission or distribution system as a result of the
15        actions or inactions of the transmission or
16        distribution provider, or other causes for force
17        majeure as outlined in the procurement contract, in
18        which case, not later than June 1, 2022. Payments to
19        suppliers of renewable energy credits shall commence
20        upon delivery. Renewable energy credits procured under
21        this initial procurement shall be included in the
22        Agency's long-term plan and shall apply to all
23        renewable energy goals in this subsection (c).
24            (ii) Notwithstanding whether a long-term renewable
25        resources procurement plan has been approved, the
26        Agency shall conduct an initial forward procurement

 

 

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1        for renewable energy credits from new utility-scale
2        solar projects and brownfield site photovoltaic
3        projects within one year after June 1, 2017 (the
4        effective date of Public Act 99-906). For the purposes
5        of this initial forward procurement, the Agency shall
6        solicit 15-year contracts for delivery of 1,000,000
7        renewable energy credits delivered annually from new
8        utility-scale solar projects and brownfield site
9        photovoltaic projects to begin delivery on June 1,
10        2019, if available, but not later than June 1, 2021,
11        unless the project has delays in the establishment of
12        an operating interconnection with the applicable
13        transmission or distribution system as a result of the
14        actions or inactions of the transmission or
15        distribution provider, or other causes for force
16        majeure as outlined in the procurement contract, in
17        which case, not later than June 1, 2022. The Agency may
18        structure this initial procurement in one or more
19        discrete procurement events. Payments to suppliers of
20        renewable energy credits shall commence upon delivery.
21        Renewable energy credits procured under this initial
22        procurement shall be included in the Agency's
23        long-term plan and shall apply to all renewable energy
24        goals in this subsection (c).
25            (iii) Notwithstanding whether the Commission has
26        approved the periodic long-term renewable resources

 

 

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1        procurement plan revision described in Section
2        16-111.5 of the Public Utilities Act, the Agency shall
3        conduct at least one subsequent forward procurement
4        for renewable energy credits from new utility-scale
5        wind projects, new utility-scale solar projects, and
6        new brownfield site photovoltaic projects within 240
7        days after the effective date of this amendatory Act
8        of the 102nd General Assembly in quantities necessary
9        to meet the requirements of subparagraph (C) of this
10        paragraph (1) through the delivery year beginning June
11        1, 2021.
12            (iv) Notwithstanding whether the Commission has
13        approved the periodic long-term renewable resources
14        procurement plan revision described in Section
15        16-111.5 of the Public Utilities Act, the Agency shall
16        open capacity for each category in the Adjustable
17        Block program within 90 days after the effective date
18        of this amendatory Act of the 102nd General Assembly
19        manner:
20                (1) The Agency shall open the first block of
21            annual capacity for the category described in item
22            (i) of subparagraph (K) of this paragraph (1). The
23            first block of annual capacity for item (i) shall
24            be for at least 75 megawatts of total nameplate
25            capacity. The price of the renewable energy credit
26            for this block of capacity shall be 4% less than

 

 

HB5054- 21 -LRB103 39370 JAG 69535 b

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

 

 

HB5054- 22 -LRB103 39370 JAG 69535 b

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

 

 

HB5054- 23 -LRB103 39370 JAG 69535 b

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

 

 

HB5054- 24 -LRB103 39370 JAG 69535 b

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

 

 

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

 

 

HB5054- 26 -LRB103 39370 JAG 69535 b

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

 

 

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

 

 

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1                        (iii) Permission for the ability of a
2                    contract holder to substitute projects
3                    with other waitlisted projects without
4                    penalty should a project receive a
5                    non-binding estimate of costs to construct
6                    the interconnection facilities and any
7                    required distribution upgrades associated
8                    with that project of greater than 30 cents
9                    per watt AC of that project's nameplate
10                    capacity. In developing the applicable
11                    contract instrument, the Agency may
12                    consider whether other circumstances
13                    outside of the control of the applicant
14                    firm should also warrant project
15                    substitution rights.
16                    The Agency shall publish a finalized
17                updated renewable energy credit delivery
18                contract developed consistent with these terms
19                and conditions no less than 30 days before
20                applicant firms must submit their portfolio of
21                projects pursuant to item (D).
22                    (F) To be eligible for an award, the
23                applicant firm shall certify that not less
24                than prevailing wage, as determined pursuant
25                to the Illinois Prevailing Wage Act, was or
26                will be paid to employees who are engaged in

 

 

HB5054- 29 -LRB103 39370 JAG 69535 b

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

 

 

HB5054- 30 -LRB103 39370 JAG 69535 b

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

 

 

HB5054- 31 -LRB103 39370 JAG 69535 b

1            paragraph (1). Pricing for future blocks of annual
2            capacity for this category may be adjusted in the
3            Agency's second revision to its Long-Term
4            Renewable Resources Procurement Plan. Projects in
5            this category shall be subject to the applicable
6            contract terms outlined in items (ii) and (iii) of
7            subparagraph (L) of this paragraph (1).
8            (v) Upon the effective date of this amendatory Act
9        of the 102nd General Assembly, for all competitive
10        procurements and any procurements of renewable energy
11        credit from new utility-scale wind and new
12        utility-scale photovoltaic projects, the Agency shall
13        procure indexed renewable energy credits and direct
14        respondents to offer a strike price.
15                (1) The purchase price of the indexed
16            renewable energy credit payment shall be
17            calculated for each settlement period. That
18            payment, for any settlement period, shall be equal
19            to the difference resulting from subtracting the
20            strike price from the index price for that
21            settlement period. If this difference results in a
22            negative number, the indexed REC counterparty
23            shall owe the seller the absolute value multiplied
24            by the quantity of energy produced in the relevant
25            settlement period. If this difference results in a
26            positive number, the seller shall owe the indexed

 

 

HB5054- 32 -LRB103 39370 JAG 69535 b

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

 

 

HB5054- 33 -LRB103 39370 JAG 69535 b

1            difference between (i) the sum across all relevant
2            contracts of the applicable strike price
3            multiplied by contract quantity and (ii) the sum
4            across all relevant contracts of the forward price
5            curve for the applicable load zone for that year
6            multiplied by contract quantity. The contracting
7            utility shall not assume an obligation in excess
8            of the estimated annual cost of the contracts for
9            indexed renewable energy credits. Forward curves
10            shall be revised on an annual basis as updated
11            forward price curves are released and filed with
12            the Commission in the proceeding approving the
13            Agency's most recent long-term renewable resources
14            procurement plan. If the expected contract spend
15            is higher or lower than the total quantity of
16            contracts multiplied by the forward price curve
17            value for that year, the forward price curve shall
18            be updated by the procurement administrator, in
19            consultation with the Agency, Commission staff,
20            and procurement monitors, using then-currently
21            available price forecast data and additional
22            budget dollars shall be obligated or reobligated
23            as appropriate.
24                (4) To ensure that indexed renewable energy
25            credit prices remain predictable and affordable,
26            the Agency may consider the institution of a price

 

 

HB5054- 34 -LRB103 39370 JAG 69535 b

1            collar on REC prices paid under indexed renewable
2            energy credit procurements establishing floor and
3            ceiling REC prices applicable to indexed REC
4            contract prices. Any price collars applicable to
5            indexed REC procurements shall be proposed by the
6            Agency through its long-term renewable resources
7            procurement plan.
8            (vi) All procurements under this subparagraph (G),
9        including the procurement of renewable energy credits
10        from hydropower facilities, shall comply with the
11        geographic requirements in subparagraph (I) of this
12        paragraph (1) and shall follow the procurement
13        processes and procedures described in this Section and
14        Section 16-111.5 of the Public Utilities Act to the
15        extent practicable, and these processes and procedures
16        may be expedited to accommodate the schedule
17        established by this subparagraph (G).
18            (vii) On and after the effective date of this
19        amendatory Act of the 103rd General Assembly, for all
20        procurements of renewable energy credits from
21        hydropower facilities, the Agency shall establish
22        contract terms designed to optimize existing
23        hydropower facilities through modernization or
24        retooling and establish new hydropower facilities at
25        existing dams. Procurements made under this item (vii)
26        shall prioritize projects located in designated

 

 

HB5054- 35 -LRB103 39370 JAG 69535 b

1        environmental justice communities, as defined in
2        subsection (b) of Section 1-56 of this Act, or in
3        projects located in units of local government with
4        median incomes that do not exceed 82% of the median
5        income of the State.
6        (H) The procurement of renewable energy resources for
7    a given delivery year shall be reduced as described in
8    this subparagraph (H) if an alternative retail electric
9    supplier meets the requirements described in this
10    subparagraph (H).
11            (i) Within 45 days after June 1, 2017 (the
12        effective date of Public Act 99-906), an alternative
13        retail electric supplier or its successor shall submit
14        an informational filing to the Illinois Commerce
15        Commission certifying that, as of December 31, 2015,
16        the alternative retail electric supplier owned one or
17        more electric generating facilities that generates
18        renewable energy resources as defined in Section 1-10
19        of this Act, provided that such facilities are not
20        powered by wind or photovoltaics, and the facilities
21        generate one renewable energy credit for each
22        megawatthour of energy produced from the facility.
23            The informational filing shall identify each
24        facility that was eligible to satisfy the alternative
25        retail electric supplier's obligations under Section
26        16-115D of the Public Utilities Act as described in

 

 

HB5054- 36 -LRB103 39370 JAG 69535 b

1        this item (i).
2            (ii) For a given delivery year, the alternative
3        retail electric supplier may elect to supply its
4        retail customers with renewable energy credits from
5        the facility or facilities described in item (i) of
6        this subparagraph (H) that continue to be owned by the
7        alternative retail electric supplier.
8            (iii) The alternative retail electric supplier
9        shall notify the Agency and the applicable utility, no
10        later than February 28 of the year preceding the
11        applicable delivery year or 15 days after June 1, 2017
12        (the effective date of Public Act 99-906), whichever
13        is later, of its election under item (ii) of this
14        subparagraph (H) to supply renewable energy credits to
15        retail customers of the utility. Such election shall
16        identify the amount of renewable energy credits to be
17        supplied by the alternative retail electric supplier
18        to the utility's retail customers and the source of
19        the renewable energy credits identified in the
20        informational filing as described in item (i) of this
21        subparagraph (H), subject to the following
22        limitations:
23                For the delivery year beginning June 1, 2018,
24            the maximum amount of renewable energy credits to
25            be supplied by an alternative retail electric
26            supplier under this subparagraph (H) shall be 68%

 

 

HB5054- 37 -LRB103 39370 JAG 69535 b

1            multiplied by 25% multiplied by 14.5% multiplied
2            by the amount of metered electricity
3            (megawatt-hours) delivered by the alternative
4            retail electric supplier to Illinois retail
5            customers during the delivery year ending May 31,
6            2016.
7                For delivery years beginning June 1, 2019 and
8            each year thereafter, the maximum amount of
9            renewable energy credits to be supplied by an
10            alternative retail electric supplier under this
11            subparagraph (H) shall be 68% multiplied by 50%
12            multiplied by 16% multiplied by the amount of
13            metered electricity (megawatt-hours) delivered by
14            the alternative retail electric supplier to
15            Illinois retail customers during the delivery year
16            ending May 31, 2016, provided that the 16% value
17            shall increase by 1.5% each delivery year
18            thereafter to 25% by the delivery year beginning
19            June 1, 2025, and thereafter the 25% value shall
20            apply to each delivery year.
21            For each delivery year, the total amount of
22        renewable energy credits supplied by all alternative
23        retail electric suppliers under this subparagraph (H)
24        shall not exceed 9% of the Illinois target renewable
25        energy credit quantity. The Illinois target renewable
26        energy credit quantity for the delivery year beginning

 

 

HB5054- 38 -LRB103 39370 JAG 69535 b

1        June 1, 2018 is 14.5% multiplied by the total amount of
2        metered electricity (megawatt-hours) delivered in the
3        delivery year immediately preceding that delivery
4        year, provided that the 14.5% shall increase by 1.5%
5        each delivery year thereafter to 25% by the delivery
6        year beginning June 1, 2025, and thereafter the 25%
7        value shall apply to each delivery year.
8            If the requirements set forth in items (i) through
9        (iii) of this subparagraph (H) are met, the charges
10        that would otherwise be applicable to the retail
11        customers of the alternative retail electric supplier
12        under paragraph (6) of this subsection (c) for the
13        applicable delivery year shall be reduced by the ratio
14        of the quantity of renewable energy credits supplied
15        by the alternative retail electric supplier compared
16        to that supplier's target renewable energy credit
17        quantity. The supplier's target renewable energy
18        credit quantity for the delivery year beginning June
19        1, 2018 is 14.5% multiplied by the total amount of
20        metered electricity (megawatt-hours) delivered by the
21        alternative retail supplier in that delivery year,
22        provided that the 14.5% shall increase by 1.5% each
23        delivery year thereafter to 25% by the delivery year
24        beginning June 1, 2025, and thereafter the 25% value
25        shall apply to each delivery year.
26            On or before April 1 of each year, the Agency shall

 

 

HB5054- 39 -LRB103 39370 JAG 69535 b

1        annually publish a report on its website that
2        identifies the aggregate amount of renewable energy
3        credits supplied by alternative retail electric
4        suppliers under this subparagraph (H).
5        (I) The Agency shall design its long-term renewable
6    energy procurement plan to maximize the State's interest
7    in the health, safety, and welfare of its residents,
8    including but not limited to minimizing sulfur dioxide,
9    nitrogen oxide, particulate matter and other pollution
10    that adversely affects public health in this State,
11    increasing fuel and resource diversity in this State,
12    enhancing the reliability and resiliency of the
13    electricity distribution system in this State, meeting
14    goals to limit carbon dioxide emissions under federal or
15    State law, and contributing to a cleaner and healthier
16    environment for the citizens of this State. In order to
17    further these legislative purposes, renewable energy
18    credits shall be eligible to be counted toward the
19    renewable energy requirements of this subsection (c) if
20    they are generated from facilities located in this State.
21    The Agency may qualify renewable energy credits from
22    facilities located in states adjacent to Illinois or
23    renewable energy credits associated with the electricity
24    generated by a utility-scale wind energy facility or
25    utility-scale photovoltaic facility and transmitted by a
26    qualifying direct current project described in subsection

 

 

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1    (b-5) of Section 8-406 of the Public Utilities Act to a
2    delivery point on the electric transmission grid located
3    in this State or a state adjacent to Illinois, if the
4    generator demonstrates and the Agency determines that the
5    operation of such facility or facilities will help promote
6    the State's interest in the health, safety, and welfare of
7    its residents based on the public interest criteria
8    described above. For the purposes of this Section,
9    renewable resources that are delivered via a high voltage
10    direct current converter station located in Illinois shall
11    be deemed generated in Illinois at the time and location
12    the energy is converted to alternating current by the high
13    voltage direct current converter station if the high
14    voltage direct current transmission line: (i) after the
15    effective date of this amendatory Act of the 102nd General
16    Assembly, was constructed with a project labor agreement;
17    (ii) is capable of transmitting electricity at 525kv;
18    (iii) has an Illinois converter station located and
19    interconnected in the region of the PJM Interconnection,
20    LLC; (iv) does not operate as a public utility; and (v) if
21    the high voltage direct current transmission line was
22    energized after June 1, 2023. To ensure that the public
23    interest criteria are applied to the procurement and given
24    full effect, the Agency's long-term procurement plan shall
25    describe in detail how each public interest factor shall
26    be considered and weighted for facilities located in

 

 

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1    states adjacent to Illinois.
2        (J) In order to promote the competitive development of
3    renewable energy resources in furtherance of the State's
4    interest in the health, safety, and welfare of its
5    residents, renewable energy credits shall not be eligible
6    to be counted toward the renewable energy requirements of
7    this subsection (c) if they are sourced from a generating
8    unit whose costs were being recovered through rates
9    regulated by this State or any other state or states on or
10    after January 1, 2017. Each contract executed to purchase
11    renewable energy credits under this subsection (c) shall
12    provide for the contract's termination if the costs of the
13    generating unit supplying the renewable energy credits
14    subsequently begin to be recovered through rates regulated
15    by this State or any other state or states; and each
16    contract shall further provide that, in that event, the
17    supplier of the credits must return 110% of all payments
18    received under the contract. Amounts returned under the
19    requirements of this subparagraph (J) shall be retained by
20    the utility and all of these amounts shall be used for the
21    procurement of additional renewable energy credits from
22    new wind or new photovoltaic resources as defined in this
23    subsection (c). The long-term plan shall provide that
24    these renewable energy credits shall be procured in the
25    next procurement event.
26        Notwithstanding the limitations of this subparagraph

 

 

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1    (J), renewable energy credits sourced from generating
2    units that are constructed, purchased, owned, or leased by
3    an electric utility as part of an approved project,
4    program, or pilot under Section 1-56 of this Act shall be
5    eligible to be counted toward the renewable energy
6    requirements of this subsection (c), regardless of how the
7    costs of these units are recovered. As long as a
8    generating unit or an identifiable portion of a generating
9    unit has not had and does not have its costs recovered
10    through rates regulated by this State or any other state,
11    HVDC renewable energy credits associated with that
12    generating unit or identifiable portion thereof shall be
13    eligible to be counted toward the renewable energy
14    requirements of this subsection (c).
15        (K) The long-term renewable resources procurement plan
16    developed by the Agency in accordance with subparagraph
17    (A) of this paragraph (1) shall include an Adjustable
18    Block program for the procurement of renewable energy
19    credits from new photovoltaic projects that are
20    distributed renewable energy generation devices or new
21    photovoltaic community renewable generation projects. The
22    Adjustable Block program shall be generally designed to
23    provide for the steady, predictable, and sustainable
24    growth of new solar photovoltaic development in Illinois.
25    To this end, the Adjustable Block program shall provide a
26    transparent annual schedule of prices and quantities to

 

 

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1    enable the photovoltaic market to scale up and for
2    renewable energy credit prices to adjust at a predictable
3    rate over time. The prices set by the Adjustable Block
4    program can be reflected as a set value or as the product
5    of a formula.
6        The Adjustable Block program shall include for each
7    category of eligible projects for each delivery year: a
8    single block of nameplate capacity, a price for renewable
9    energy credits within that block, and the terms and
10    conditions for securing a spot on a waitlist once the
11    block is fully committed or reserved. Except as outlined
12    below, the waitlist of projects in a given year will carry
13    over to apply to the subsequent year when another block is
14    opened. Only projects energized on or after June 1, 2017
15    shall be eligible for the Adjustable Block program. For
16    each category for each delivery year the Agency shall
17    determine the amount of generation capacity in each block,
18    and the purchase price for each block, provided that the
19    purchase price provided and the total amount of generation
20    in all blocks for all categories shall be sufficient to
21    meet the goals in this subsection (c). The Agency shall
22    strive to issue a single block sized to provide for
23    stability and market growth. The Agency shall establish
24    program eligibility requirements that ensure that projects
25    that enter the program are sufficiently mature to indicate
26    a demonstrable path to completion. The Agency may

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            Returning Residents Clean Jobs Training Program,
2            the Clean Energy Contractor Incubator Program, or
3            the Clean Energy Primes Contractor Accelerator
4            Program;
5                (2) increase the diversity of locations of
6            community solar projects in Illinois, including by
7            locating in urban areas and population centers;
8                (3) are located in Equity Investment Eligible
9            Communities;
10                (4) are not greenfield projects;
11                (5) serve only local subscribers;
12                (6) have a nameplate capacity that does not
13            exceed 500 kW;
14                (7) are developed by an equity eligible
15            contractor; or
16                (8) otherwise meaningfully advance the goals
17            of providing more direct and tangible connection
18            and benefits to the communities which they serve
19            or in which they operate and increasing the
20            variety of community solar locations, models, and
21            options in Illinois.
22            For the purposes of this item (v):
23            "Community" means a social unit in which people
24        come together regularly to effect change; a social
25        unit in which participants are marked by a cooperative
26        spirit, a common purpose, or shared interests or

 

 

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1        characteristics; or a space understood by its
2        residents to be delineated through geographic
3        boundaries or landmarks.
4            "Community benefit" means a range of services and
5        activities that provide affirmative, economic,
6        environmental, social, cultural, or physical value to
7        a community; or a mechanism that enables economic
8        development, high-quality employment, and education
9        opportunities for local workers and residents, or
10        formal monitoring and oversight structures such that
11        community members may ensure that those services and
12        activities respond to local knowledge and needs.
13            "Community ownership" means an arrangement in
14        which an electric generating facility is, or over time
15        will be, in significant part, owned collectively by
16        members of the community to which an electric
17        generating facility provides benefits; members of that
18        community participate in decisions regarding the
19        governance, operation, maintenance, and upgrades of
20        and to that facility; and members of that community
21        benefit from regular use of that facility.
22            Terms and guidance within these criteria that are
23        not defined in this item (v) shall be defined by the
24        Agency, with stakeholder input, during the development
25        of the Agency's long-term renewable resources
26        procurement plan. The Agency shall develop regular

 

 

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1        opportunities for projects to submit applications for
2        projects under this category, and develop selection
3        criteria that gives preference to projects that better
4        meet individual criteria as well as projects that
5        address a higher number of criteria.
6            (vi) At least 10% from distributed renewable
7        energy generation devices, which includes distributed
8        renewable energy devices with a nameplate capacity
9        under 5,000 kilowatts or photovoltaic community
10        renewable generation projects, from applicants that
11        are equity eligible contractors. The Agency may create
12        subcategories within this category to account for the
13        differences between project size and type. The Agency
14        shall propose to increase the percentage in this item
15        (vi) over time to 40% based on factors, including, but
16        not limited to, the number of equity eligible
17        contractors and capacity used in this item (vi) in
18        previous delivery years.
19            The Agency shall propose a payment structure for
20        contracts executed pursuant to this paragraph under
21        which, upon a demonstration of qualification or need,
22        applicant firms are advanced capital disbursed after
23        contract execution but before the contracted project's
24        energization. The amount or percentage of capital
25        advanced prior to project energization shall be
26        sufficient to both cover any increase in development

 

 

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

 

 

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

 

 

HB5054- 54 -LRB103 39370 JAG 69535 b

1    ensure that renewable energy credits are procured from
2    projects in diverse locations and are not concentrated in
3    a few regional areas.
4        (L) Notwithstanding provisions for advancing capital
5    prior to project energization found in item (vi) of
6    subparagraph (K), the procurement of photovoltaic
7    renewable energy credits under items (i) through (vi) of
8    subparagraph (K) of this paragraph (1) shall otherwise be
9    subject to the following contract and payment terms:
10        (i) (Blank).
11            (ii) For those renewable energy credits that
12        qualify and are procured under item (i) of
13        subparagraph (K) of this paragraph (1), and any
14        similar category projects that are procured under item
15        (vi) of subparagraph (K) of this paragraph (1) that
16        qualify and are procured under item (vi), the contract
17        length shall be 15 years. The renewable energy credit
18        delivery contract value shall be paid in full, based
19        on the estimated generation during the first 15 years
20        of operation, by the contracting utilities at the time
21        that the facility producing the renewable energy
22        credits is interconnected at the distribution system
23        level of the utility and verified as energized and
24        compliant by the Program Administrator. The electric
25        utility shall receive and retire all renewable energy
26        credits generated by the project for the first 15

 

 

HB5054- 55 -LRB103 39370 JAG 69535 b

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

 

 

HB5054- 56 -LRB103 39370 JAG 69535 b

1        qualify and are procured under items (iii) and (iv) of
2        subparagraph (K) of this paragraph (1), and any like
3        projects that qualify and are procured under item
4        (vi), the renewable energy credit delivery contract
5        length shall be 20 years and shall be paid over the
6        delivery term, not to exceed during each delivery year
7        the contract price multiplied by the estimated annual
8        renewable energy credit generation amount. If
9        generation of renewable energy credits during a
10        delivery year exceeds the estimated annual generation
11        amount, the excess renewable energy credits shall be
12        carried forward to future delivery years and shall not
13        expire during the delivery term. If generation of
14        renewable energy credits during a delivery year,
15        including carried forward excess renewable energy
16        credits, if any, is less than the estimated annual
17        generation amount, payments during such delivery year
18        will not exceed the quantity generated plus the
19        quantity carried forward multiplied by the contract
20        price. The electric utility shall receive all
21        renewable energy credits generated by the project
22        during the first 20 years of operation and retire all
23        renewable energy credits paid for under this item (iv)
24        and return at the end of the delivery term all
25        renewable energy credits that were not paid for.
26        Renewable energy credits generated by the project

 

 

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1        thereafter shall not be transferred under the
2        renewable energy credit delivery contract with the
3        counterparty electric utility. Notwithstanding the
4        preceding, for those projects participating under item
5        (iii) of subparagraph (K), the contract price for a
6        delivery year shall be based on subscription levels as
7        measured on the higher of the first business day of the
8        delivery year or the first business day 6 months after
9        the first business day of the delivery year.
10        Subscription of 90% of nameplate capacity or greater
11        shall be deemed to be fully subscribed for the
12        purposes of this item (iv). For projects receiving a
13        20-year delivery contract, REC prices shall be
14        adjusted downward for consistency with the incentive
15        levels previously determined to be necessary to
16        support projects under 15-year delivery contracts,
17        taking into consideration any additional new
18        requirements placed on the projects, including, but
19        not limited to, labor standards.
20            (v) Each contract shall include provisions to
21        ensure the delivery of the estimated quantity of
22        renewable energy credits and ongoing collateral
23        requirements and other provisions deemed appropriate
24        by the Agency.
25            (vi) The utility shall be the counterparty to the
26        contracts executed under this subparagraph (L) that

 

 

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1        are approved by the Commission under the process
2        described in Section 16-111.5 of the Public Utilities
3        Act. No contract shall be executed for an amount that
4        is less than one renewable energy credit per year.
5            (vii) If, at any time, approved applications for
6        the Adjustable Block program exceed funds collected by
7        the electric utility or would cause the Agency to
8        exceed the limitation described in subparagraph (E) of
9        this paragraph (1) on the amount of renewable energy
10        resources that may be procured, then the Agency may
11        consider future uncommitted funds to be reserved for
12        these contracts on a first-come, first-served basis.
13            (viii) Nothing in this Section shall require the
14        utility to advance any payment or pay any amounts that
15        exceed the actual amount of revenues anticipated to be
16        collected by the utility under paragraph (6) of this
17        subsection (c) and subsection (k) of Section 16-108 of
18        the Public Utilities Act inclusive of eligible funds
19        collected in prior years and alternative compliance
20        payments for use by the utility, and contracts
21        executed under this Section shall expressly
22        incorporate this limitation.
23            (ix) Notwithstanding other requirements of this
24        subparagraph (L), no modification shall be required to
25        Adjustable Block program contracts if they were
26        already executed prior to the establishment, approval,

 

 

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1        and implementation of new contract forms as a result
2        of this amendatory Act of the 102nd General Assembly.
3            (x) Contracts may be assignable, but only to
4        entities first deemed by the Agency to have met
5        program terms and requirements applicable to direct
6        program participation. In developing contracts for the
7        delivery of renewable energy credits, the Agency shall
8        be permitted to establish fees applicable to each
9        contract assignment.
10        (M) The Agency shall be authorized to retain one or
11    more experts or expert consulting firms to develop,
12    administer, implement, operate, and evaluate the
13    Adjustable Block program described in subparagraph (K) of
14    this paragraph (1), and the Agency shall retain the
15    consultant or consultants in the same manner, to the
16    extent practicable, as the Agency retains others to
17    administer provisions of this Act, including, but not
18    limited to, the procurement administrator. The selection
19    of experts and expert consulting firms and the procurement
20    process described in this subparagraph (M) are exempt from
21    the requirements of Section 20-10 of the Illinois
22    Procurement Code, under Section 20-10 of that Code. The
23    Agency shall strive to minimize administrative expenses in
24    the implementation of the Adjustable Block program.
25        The Program Administrator may charge application fees
26    to participating firms to cover the cost of program

 

 

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1    administration. Any application fee amounts shall
2    initially be determined through the long-term renewable
3    resources procurement plan, and modifications to any
4    application fee that deviate more than 25% from the
5    Commission's approved value must be approved by the
6    Commission as a long-term plan revision under Section
7    16-111.5 of the Public Utilities Act. The Agency shall
8    consider stakeholder feedback when making adjustments to
9    application fees and shall notify stakeholders in advance
10    of any planned changes.
11        In addition to covering the costs of program
12    administration, the Agency, in conjunction with its
13    Program Administrator, may also use the proceeds of such
14    fees charged to participating firms to support public
15    education and ongoing regional and national coordination
16    with nonprofit organizations, public bodies, and others
17    engaged in the implementation of renewable energy
18    incentive programs or similar initiatives. This work may
19    include developing papers and reports, hosting regional
20    and national conferences, and other work deemed necessary
21    by the Agency to position the State of Illinois as a
22    national leader in renewable energy incentive program
23    development and administration.
24        The Agency and its consultant or consultants shall
25    monitor block activity, share program activity with
26    stakeholders and conduct quarterly meetings to discuss

 

 

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1    program activity and market conditions. If necessary, the
2    Agency may make prospective administrative adjustments to
3    the Adjustable Block program design, such as making
4    adjustments to purchase prices as necessary to achieve the
5    goals of this subsection (c). Program modifications to any
6    block price that do not deviate from the Commission's
7    approved value by more than 10% shall take effect
8    immediately and are not subject to Commission review and
9    approval. Program modifications to any block price that
10    deviate more than 10% from the Commission's approved value
11    must be approved by the Commission as a long-term plan
12    amendment under Section 16-111.5 of the Public Utilities
13    Act. The Agency shall consider stakeholder feedback when
14    making adjustments to the Adjustable Block design and
15    shall notify stakeholders in advance of any planned
16    changes.
17        The Agency and its program administrators for both the
18    Adjustable Block program and the Illinois Solar for All
19    Program, consistent with the requirements of this
20    subsection (c) and subsection (b) of Section 1-56 of this
21    Act, shall propose the Adjustable Block program terms,
22    conditions, and requirements, including the prices to be
23    paid for renewable energy credits, where applicable, and
24    requirements applicable to participating entities and
25    project applications, through the development, review, and
26    approval of the Agency's long-term renewable resources

 

 

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1    procurement plan described in this subsection (c) and
2    paragraph (5) of subsection (b) of Section 16-111.5 of the
3    Public Utilities Act. Terms, conditions, and requirements
4    for program participation shall include the following:
5            (i) The Agency shall establish a registration
6        process for entities seeking to qualify for
7        program-administered incentive funding and establish
8        baseline qualifications for vendor approval. The
9        Agency must maintain a list of approved entities on
10        each program's website, and may revoke a vendor's
11        ability to receive program-administered incentive
12        funding status upon a determination that the vendor
13        failed to comply with contract terms, the law, or
14        other program requirements.
15            (ii) The Agency shall establish program
16        requirements and minimum contract terms to ensure
17        projects are properly installed and produce their
18        expected amounts of energy. Program requirements may
19        include on-site inspections and photo documentation of
20        projects under construction. The Agency may require
21        repairs, alterations, or additions to remedy any
22        material deficiencies discovered. Vendors who have a
23        disproportionately high number of deficient systems
24        may lose their eligibility to continue to receive
25        State-administered incentive funding through Agency
26        programs and procurements.

 

 

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1            (iii) To discourage deceptive marketing or other
2        bad faith business practices, the Agency may require
3        direct program participants, including agents
4        operating on their behalf, to provide standardized
5        disclosures to a customer prior to that customer's
6        execution of a contract for the development of a
7        distributed generation system or a subscription to a
8        community solar project.
9            (iv) The Agency shall establish one or multiple
10        Consumer Complaints Centers to accept complaints
11        regarding businesses that participate in, or otherwise
12        benefit from, State-administered incentive funding
13        through Agency-administered programs. The Agency shall
14        maintain a public database of complaints with any
15        confidential or particularly sensitive information
16        redacted from public entries.
17            (v) Through a filing in the proceeding for the
18        approval of its long-term renewable energy resources
19        procurement plan, the Agency shall provide an annual
20        written report to the Illinois Commerce Commission
21        documenting the frequency and nature of complaints and
22        any enforcement actions taken in response to those
23        complaints.
24            (vi) The Agency shall schedule regular meetings
25        with representatives of the Office of the Attorney
26        General, the Illinois Commerce Commission, consumer

 

 

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1        protection groups, and other interested stakeholders
2        to share relevant information about consumer
3        protection, project compliance, and complaints
4        received.
5            (vii) To the extent that complaints received
6        implicate the jurisdiction of the Office of the
7        Attorney General, the Illinois Commerce Commission, or
8        local, State, or federal law enforcement, the Agency
9        shall also refer complaints to those entities as
10        appropriate.
11        (N) The Agency shall establish the terms, conditions,
12    and program requirements for photovoltaic community
13    renewable generation projects with a goal to expand access
14    to a broader group of energy consumers, to ensure robust
15    participation opportunities for residential and small
16    commercial customers and those who cannot install
17    renewable energy on their own properties. Subject to
18    reasonable limitations, any plan approved by the
19    Commission shall allow subscriptions to community
20    renewable generation projects to be portable and
21    transferable. For purposes of this subparagraph (N),
22    "portable" means that subscriptions may be retained by the
23    subscriber even if the subscriber relocates or changes its
24    address within the same utility service territory; and
25    "transferable" means that a subscriber may assign or sell
26    subscriptions to another person within the same utility

 

 

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1    service territory.
2        Through the development of its long-term renewable
3    resources procurement plan, the Agency may consider
4    whether community renewable generation projects utilizing
5    technologies other than photovoltaics should be supported
6    through State-administered incentive funding, and may
7    issue requests for information to gauge market demand.
8        Electric utilities shall provide a monetary credit to
9    a subscriber's subsequent bill for service for the
10    proportional output of a community renewable generation
11    project attributable to that subscriber as specified in
12    Section 16-107.5 of the Public Utilities Act.
13        The Agency shall purchase renewable energy credits
14    from subscribed shares of photovoltaic community renewable
15    generation projects through the Adjustable Block program
16    described in subparagraph (K) of this paragraph (1) or
17    through the Illinois Solar for All Program described in
18    Section 1-56 of this Act. The electric utility shall
19    purchase any unsubscribed energy from community renewable
20    generation projects that are Qualifying Facilities ("QF")
21    under the electric utility's tariff for purchasing the
22    output from QFs under Public Utilities Regulatory Policies
23    Act of 1978.
24        The owners of and any subscribers to a community
25    renewable generation project shall not be considered
26    public utilities or alternative retail electricity

 

 

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1    suppliers under the Public Utilities Act solely as a
2    result of their interest in or subscription to a community
3    renewable generation project and shall not be required to
4    become an alternative retail electric supplier by
5    participating in a community renewable generation project
6    with a public utility.
7        (O) For the delivery year beginning June 1, 2018, the
8    long-term renewable resources procurement plan required by
9    this subsection (c) shall provide for the Agency to
10    procure contracts to continue offering the Illinois Solar
11    for All Program described in subsection (b) of Section
12    1-56 of this Act, and the contracts approved by the
13    Commission shall be executed by the utilities that are
14    subject to this subsection (c). The long-term renewable
15    resources procurement plan shall allocate up to
16    $50,000,000 per delivery year to fund the programs, and
17    the plan shall determine the amount of funding to be
18    apportioned to the programs identified in subsection (b)
19    of Section 1-56 of this Act; provided that for the
20    delivery years beginning June 1, 2021, June 1, 2022, and
21    June 1, 2023, the long-term renewable resources
22    procurement plan may average the annual budgets over a
23    3-year period to account for program ramp-up. For the
24    delivery years beginning June 1, 2021, June 1, 2024, June
25    1, 2027, and June 1, 2030 and additional $10,000,000 shall
26    be provided to the Department of Commerce and Economic

 

 

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

 

 

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

 

 

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1        religious exercise or religious worship and (2)
2        recognized as exempt from taxation pursuant to Section
3        15-40 of the Property Tax Code. This item (1) shall
4        apply to any the following:
5                (i) all new utility-scale wind projects;
6                (ii) all new utility-scale photovoltaic
7            projects;
8                (iii) all new brownfield photovoltaic
9            projects;
10                (iv) all new photovoltaic community renewable
11            energy facilities that qualify for item (iii) of
12            subparagraph (K) of this paragraph (1);
13                (v) all new community driven community
14            photovoltaic projects that qualify for item (v) of
15            subparagraph (K) of this paragraph (1);
16                (vi) all new photovoltaic projects on public
17            school land that qualify for item (iv) of
18            subparagraph (K) of this paragraph (1);
19                (vii) all new photovoltaic distributed
20            renewable energy generation devices that (1)
21            qualify for item (i) of subparagraph (K) of this
22            paragraph (1); (2) are not projects that serve
23            single-family or multi-family residential
24            buildings; and (3) are not houses of worship where
25            the aggregate capacity including collocated
26            projects would not exceed 100 kilowatts;

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    photovoltaic projects or new distributed renewable energy
2    generation devices under this Section after June 1, 2017
3    (the effective date of Public Act 99-906) must be procured
4    from devices installed by a qualified person in compliance
5    with the requirements of Section 16-128A of the Public
6    Utilities Act and any rules or regulations adopted
7    thereunder.
8        In meeting the renewable energy requirements of this
9    subsection (c), to the extent feasible and consistent with
10    State and federal law, the renewable energy credit
11    procurements, Adjustable Block solar program, and
12    community renewable generation program shall provide
13    employment opportunities for all segments of the
14    population and workforce, including minority-owned and
15    female-owned business enterprises, and shall not,
16    consistent with State and federal law, discriminate based
17    on race or socioeconomic status.
18    (c-5) Procurement of renewable energy credits from new
19renewable energy facilities installed at or adjacent to the
20sites of electric generating facilities that burn or burned
21coal as their primary fuel source.
22        (1) In addition to the procurement of renewable energy
23    credits pursuant to long-term renewable resources
24    procurement plans in accordance with subsection (c) of
25    this Section and Section 16-111.5 of the Public Utilities
26    Act, the Agency shall conduct procurement events in

 

 

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1    accordance with this subsection (c-5) for the procurement
2    by electric utilities that served more than 300,000 retail
3    customers in this State as of January 1, 2019 of renewable
4    energy credits from new renewable energy facilities to be
5    installed at or adjacent to the sites of electric
6    generating facilities that, as of January 1, 2016, burned
7    coal as their primary fuel source and meet the other
8    criteria specified in this subsection (c-5). For purposes
9    of this subsection (c-5), "new renewable energy facility"
10    means a new utility-scale solar project as defined in this
11    Section 1-75. The renewable energy credits procured
12    pursuant to this subsection (c-5) may be included or
13    counted for purposes of compliance with the amounts of
14    renewable energy credits required to be procured pursuant
15    to subsection (c) of this Section to the extent that there
16    are otherwise shortfalls in compliance with such
17    requirements. The procurement of renewable energy credits
18    by electric utilities pursuant to this subsection (c-5)
19    shall be funded solely by revenues collected from the Coal
20    to Solar and Energy Storage Initiative Charge provided for
21    in this subsection (c-5) and subsection (i-5) of Section
22    16-108 of the Public Utilities Act, shall not be funded by
23    revenues collected through any of the other funding
24    mechanisms provided for in subsection (c) of this Section,
25    and shall not be subject to the limitation imposed by
26    subsection (c) on charges to retail customers for costs to

 

 

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1    procure renewable energy resources pursuant to subsection
2    (c), and shall not be subject to any other requirements or
3    limitations of subsection (c).
4        (2) The Agency shall conduct 2 procurement events to
5    select owners of electric generating facilities meeting
6    the eligibility criteria specified in this subsection
7    (c-5) to enter into long-term contracts to sell renewable
8    energy credits to electric utilities serving more than
9    300,000 retail customers in this State as of January 1,
10    2019. The first procurement event shall be conducted no
11    later than March 31, 2022, unless the Agency elects to
12    delay it, until no later than May 1, 2022, due to its
13    overall volume of work, and shall be to select owners of
14    electric generating facilities located in this State and
15    south of federal Interstate Highway 80 that meet the
16    eligibility criteria specified in this subsection (c-5).
17    The second procurement event shall be conducted no sooner
18    than September 30, 2022 and no later than October 31, 2022
19    and shall be to select owners of electric generating
20    facilities located anywhere in this State that meet the
21    eligibility criteria specified in this subsection (c-5).
22    The Agency shall establish and announce a time period,
23    which shall begin no later than 30 days prior to the
24    scheduled date for the procurement event, during which
25    applicants may submit applications to be selected as
26    suppliers of renewable energy credits pursuant to this

 

 

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1    subsection (c-5). The eligibility criteria for selection
2    as a supplier of renewable energy credits pursuant to this
3    subsection (c-5) shall be as follows:
4            (A) The applicant owns an electric generating
5        facility located in this State that: (i) as of January
6        1, 2016, burned coal as its primary fuel to generate
7        electricity; and (ii) has, or had prior to retirement,
8        an electric generating capacity of at least 150
9        megawatts. The electric generating facility can be
10        either: (i) retired as of the date of the procurement
11        event; or (ii) still operating as of the date of the
12        procurement event.
13            (B) The applicant is not (i) an electric
14        cooperative as defined in Section 3-119 of the Public
15        Utilities Act, or (ii) an entity described in
16        subsection (b)(1) of Section 3-105 of the Public
17        Utilities Act, or an association or consortium of or
18        an entity owned by entities described in (i) or (ii);
19        and the coal-fueled electric generating facility was
20        at one time owned, in whole or in part, by a public
21        utility as defined in Section 3-105 of the Public
22        Utilities Act.
23            (C) If participating in the first procurement
24        event, the applicant proposes and commits to construct
25        and operate, at the site, and if necessary for
26        sufficient space on property adjacent to the existing

 

 

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

 

 

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

 

 

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1        construction of the new renewable energy facility and
2        associated energy storage facility that includes
3        provisions requiring the parties to the agreement to
4        work together to establish diversity threshold
5        requirements and to ensure best efforts to meet
6        diversity targets, improve diversity at the applicable
7        job site, create diverse apprenticeship opportunities,
8        and create opportunities to employ former coal-fired
9        power plant workers.
10            (H) The applicant commits to enter into a contract
11        or contracts for the applicable duration to provide
12        specified numbers of renewable energy credits each
13        year from the new renewable energy facility to
14        electric utilities that served more than 300,000
15        retail customers in this State as of January 1, 2019,
16        at a price of $30 per renewable energy credit. The
17        price per renewable energy credit shall be fixed at
18        $30 for the applicable duration and the renewable
19        energy credits shall not be indexed renewable energy
20        credits as provided for in item (v) of subparagraph
21        (G) of paragraph (1) of subsection (c) of Section 1-75
22        of this Act. The applicable duration of each contract
23        shall be 20 years, unless the applicant is physically
24        interconnected to the PJM Interconnection, LLC
25        transmission grid and had a generating capacity of at
26        least 1,200 megawatts as of January 1, 2021, in which

 

 

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

 

 

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1    utilities to supply renewable energy credits in accordance
2    with this subsection (c-5). In the first procurement
3    event, the Agency shall select applicants and new
4    renewable energy facilities to supply renewable energy
5    credits, at a price of $30 per renewable energy credit,
6    aggregating to no less than 400,000 renewable energy
7    credits per year for the applicable duration, assuming
8    sufficient qualifying applications to supply, in the
9    aggregate, at least that amount of renewable energy
10    credits per year; and not more than 580,000 renewable
11    energy credits per year for the applicable duration. In
12    the second procurement event, the Agency shall select
13    applicants and new renewable energy facilities to supply
14    renewable energy credits, at a price of $30 per renewable
15    energy credit, aggregating to no more than 625,000
16    renewable energy credits per year less the amount of
17    renewable energy credits each year contracted for as a
18    result of the first procurement event, for the applicable
19    durations. The number of renewable energy credits to be
20    procured as specified in this paragraph (5) shall not be
21    reduced based on renewable energy credits procured in the
22    self-direct renewable energy credit compliance program
23    established pursuant to subparagraph (R) of paragraph (1)
24    of subsection (c) of Section 1-75.
25        (6) The obligation to purchase renewable energy
26    credits from the applicants and their new renewable energy

 

 

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1    facilities selected by the Agency shall be allocated to
2    the electric utilities based on their respective
3    percentages of kilowatthours delivered to delivery
4    services customers to the aggregate kilowatthour
5    deliveries by the electric utilities to delivery services
6    customers for the year ended December 31, 2021. In order
7    to achieve these allocation percentages between or among
8    the electric utilities, the Agency shall require each
9    applicant that is selected in the procurement event to
10    enter into a contract with each electric utility for the
11    sale and purchase of renewable energy credits from each
12    new renewable energy facility to be constructed and
13    operated by the applicant, with the sale and purchase
14    obligations under the contracts to aggregate to the total
15    number of renewable energy credits per year to be supplied
16    by the applicant from the new renewable energy facility.
17        (7) The Agency shall submit its proposed selection of
18    applicants, new renewable energy facilities to be
19    constructed, and renewable energy credit amounts for each
20    procurement event to the Commission for approval. The
21    Commission shall, within 2 business days after receipt of
22    the Agency's proposed selections, approve the proposed
23    selections if it determines that the applicants and the
24    new renewable energy facilities to be constructed meet the
25    selection criteria set forth in this subsection (c-5) and
26    that the Agency seeks approval for contracts of applicable

 

 

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1    durations aggregating to no more than the maximum amount
2    of renewable energy credits per year authorized by this
3    subsection (c-5) for the procurement event, at a price of
4    $30 per renewable energy credit.
5        (8) The Agency, in conjunction with its procurement
6    administrator if one is retained, the electric utilities,
7    and potential applicants for contracts to produce and
8    supply renewable energy credits pursuant to this
9    subsection (c-5), shall develop a standard form contract
10    for the sale, delivery and purchase of renewable energy
11    credits pursuant to this subsection (c-5). Each contract
12    resulting from the first procurement event shall allow for
13    a commercial operation date for the new renewable energy
14    facility of either June 1, 2023 or June 1, 2024, with such
15    dates subject to adjustment as provided in this paragraph.
16    Each contract resulting from the second procurement event
17    shall provide for a commercial operation date on June 1
18    next occurring up to 48 months after execution of the
19    contract. Each contract shall provide that the owner shall
20    receive payments for renewable energy credits for the
21    applicable durations beginning with the commercial
22    operation date of the new renewable energy facility. The
23    form contract shall provide for adjustments to the
24    commercial operation and payment start dates as needed due
25    to any delays in completing the procurement and
26    contracting processes, in finalizing interconnection

 

 

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1    agreements and installing interconnection facilities, and
2    in obtaining other necessary governmental permits and
3    approvals. The form contract shall be, to the maximum
4    extent possible, consistent with standard electric
5    industry contracts for sale, delivery, and purchase of
6    renewable energy credits while taking into account the
7    specific requirements of this subsection (c-5). The form
8    contract shall provide for over-delivery and
9    under-delivery of renewable energy credits within
10    reasonable ranges during each 12-month period and penalty,
11    default, and enforcement provisions for failure of the
12    selling party to deliver renewable energy credits as
13    specified in the contract and to comply with the
14    requirements of this subsection (c-5). The standard form
15    contract shall specify that all renewable energy credits
16    delivered to the electric utility pursuant to the contract
17    shall be retired. The Agency shall make the proposed
18    contracts available for a reasonable period for comment by
19    potential applicants, and shall publish the final form
20    contract at least 30 days before the date of the first
21    procurement event.
22        (9) Coal to Solar and Energy Storage Initiative
23    Charge.
24            (A) By no later than July 1, 2022, each electric
25        utility that served more than 300,000 retail customers
26        in this State as of January 1, 2019 shall file a tariff

 

 

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

 

 

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1        reconciliation of revenues collected with actual
2        costs, in accordance with subsection (i-5) of Section
3        16-108 of the Public Utilities Act.
4            (B) Each electric utility shall remit on a monthly
5        basis to the State Treasurer, for deposit in the Coal
6        to Solar and Energy Storage Initiative Fund provided
7        for in this subsection (c-5), the electric utility's
8        collections of the Coal to Solar and Energy Storage
9        Initiative Charge in the amount estimated to be needed
10        by the Department for grant payments pursuant to grant
11        contracts entered into by the Department pursuant to
12        paragraph (10) of this subsection (c-5).
13        (10) Coal to Solar and Energy Storage Initiative Fund.
14            (A) The Coal to Solar and Energy Storage
15        Initiative Fund is established as a special fund in
16        the State treasury. The Coal to Solar and Energy
17        Storage Initiative Fund is authorized to receive, by
18        statutory deposit, that portion specified in item (B)
19        of paragraph (9) of this subsection (c-5) of moneys
20        collected by electric utilities through imposition of
21        the Coal to Solar and Energy Storage Initiative Charge
22        required by this subsection (c-5). The Coal to Solar
23        and Energy Storage Initiative Fund shall be
24        administered by the Department to provide grants to
25        support the installation and operation of energy
26        storage facilities at the sites of qualifying electric

 

 

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1        generating facilities meeting the criteria specified
2        in this paragraph (10).
3            (B) The Coal to Solar and Energy Storage
4        Initiative Fund shall not be subject to sweeps,
5        administrative charges, or chargebacks, including, but
6        not limited to, those authorized under Section 8h of
7        the State Finance Act, that would in any way result in
8        the transfer of those funds from the Coal to Solar and
9        Energy Storage Initiative Fund to any other fund of
10        this State or in having any such funds utilized for any
11        purpose other than the express purposes set forth in
12        this paragraph (10).
13            (C) The Department shall utilize up to
14        $280,500,000 in the Coal to Solar and Energy Storage
15        Initiative Fund for grants, assuming sufficient
16        qualifying applicants, to support installation of
17        energy storage facilities at the sites of up to 3
18        qualifying electric generating facilities located in
19        the Midcontinent Independent System Operator, Inc.,
20        region in Illinois and the sites of up to 2 qualifying
21        electric generating facilities located in the PJM
22        Interconnection, LLC region in Illinois that meet the
23        criteria set forth in this subparagraph (C). The
24        criteria for receipt of a grant pursuant to this
25        subparagraph (C) are as follows:
26                (1) the electric generating facility at the

 

 

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1            site has, or had prior to retirement, an electric
2            generating capacity of at least 150 megawatts;
3                (2) the electric generating facility burns (or
4            burned prior to retirement) coal as its primary
5            source of fuel;
6                (3) if the electric generating facility is
7            retired, it was retired subsequent to January 1,
8            2016;
9                (4) the owner of the electric generating
10            facility has not been selected by the Agency
11            pursuant to this subsection (c-5) of this Section
12            to enter into a contract to sell renewable energy
13            credits to one or more electric utilities from a
14            new renewable energy facility located or to be
15            located at or adjacent to the site at which the
16            electric generating facility is located;
17                (5) the electric generating facility located
18            at the site was at one time owned, in whole or in
19            part, by a public utility as defined in Section
20            3-105 of the Public Utilities Act;
21                (6) the electric generating facility at the
22            site is not owned by (i) an electric cooperative
23            as defined in Section 3-119 of the Public
24            Utilities Act, or (ii) an entity described in
25            subsection (b)(1) of Section 3-105 of the Public
26            Utilities Act, or an association or consortium of

 

 

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1            or an entity owned by entities described in items
2            (i) or (ii);
3                (7) the proposed energy storage facility at
4            the site will have energy storage capacity of at
5            least 37 megawatts;
6                (8) the owner commits to place the energy
7            storage facility into commercial operation on
8            either June 1, 2023, June 1, 2024, or June 1, 2025,
9            with such date subject to adjustment as needed due
10            to any delays in completing the grant contracting
11            process, in finalizing interconnection agreements
12            and in installing interconnection facilities, and
13            in obtaining necessary governmental permits and
14            approvals;
15                (9) the owner agrees that the new energy
16            storage facility will be constructed or installed
17            by a qualified entity or entities consistent with
18            the requirements of subsection (g) of Section
19            16-128A of the Public Utilities Act and any rules
20            adopted under that Section;
21                (10) the owner agrees that personnel operating
22            the energy storage facility will have the
23            requisite skills, knowledge, training, experience,
24            and competence, which may be demonstrated by
25            completion or current participation and ultimate
26            completion by employees of an accredited or

 

 

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1            otherwise recognized apprenticeship program for
2            the employee's particular craft, trade, or skill,
3            including through training and education courses
4            and opportunities offered by the owner to
5            employees of the coal-fueled electric generating
6            facility or by previous employment experience
7            performing the employee's particular work skill or
8            function;
9                (11) the owner commits that not less than the
10            prevailing wage, as determined pursuant to the
11            Prevailing Wage Act, will be paid to the owner's
12            employees engaged in construction activities
13            associated with the new energy storage facility
14            and to the employees of the owner's contractors
15            engaged in construction activities associated with
16            the new energy storage facility, and that, on or
17            before the commercial operation date of the new
18            energy storage facility, the owner shall file a
19            report with the Department certifying that the
20            requirements of this subparagraph (11) have been
21            met; and
22                (12) the owner commits that if selected to
23            receive a grant, it will negotiate a project labor
24            agreement for the construction of the new energy
25            storage facility that includes provisions
26            requiring the parties to the agreement to work

 

 

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1            together to establish diversity threshold
2            requirements and to ensure best efforts to meet
3            diversity targets, improve diversity at the
4            applicable job site, create diverse apprenticeship
5            opportunities, and create opportunities to employ
6            former coal-fired power plant workers.
7            The Department shall accept applications for this
8        grant program until March 31, 2022 and shall announce
9        the award of grants no later than June 1, 2022. The
10        Department shall make the grant payments to a
11        recipient in equal annual amounts for 10 years
12        following the date the energy storage facility is
13        placed into commercial operation. The annual grant
14        payments to a qualifying energy storage facility shall
15        be $110,000 per megawatt of energy storage capacity,
16        with total annual grant payments pursuant to this
17        subparagraph (C) for qualifying energy storage
18        facilities not to exceed $28,050,000 in any year.
19            (D) Grants of funding for energy storage
20        facilities pursuant to subparagraph (C) of this
21        paragraph (10), from the Coal to Solar and Energy
22        Storage Initiative Fund, shall be memorialized in
23        grant contracts between the Department and the
24        recipient. The grant contracts shall specify the date
25        or dates in each year on which the annual grant
26        payments shall be paid.

 

 

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1            (E) All disbursements from the Coal to Solar and
2        Energy Storage Initiative Fund shall be made only upon
3        warrants of the Comptroller drawn upon the Treasurer
4        as custodian of the Fund upon vouchers signed by the
5        Director of the Department or by the person or persons
6        designated by the Director of the Department for that
7        purpose. The Comptroller is authorized to draw the
8        warrants upon vouchers so signed. The Treasurer shall
9        accept all written warrants so signed and shall be
10        released from liability for all payments made on those
11        warrants.
12        (11) Diversity, equity, and inclusion plans.
13            (A) Each applicant selected in a procurement event
14        to contract to supply renewable energy credits in
15        accordance with this subsection (c-5) and each owner
16        selected by the Department to receive a grant or
17        grants to support the construction and operation of a
18        new energy storage facility or facilities in
19        accordance with this subsection (c-5) shall, within 60
20        days following the Commission's approval of the
21        applicant to contract to supply renewable energy
22        credits or within 60 days following execution of a
23        grant contract with the Department, as applicable,
24        submit to the Commission a diversity, equity, and
25        inclusion plan setting forth the applicant's or
26        owner's numeric goals for the diversity composition of

 

 

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1        its supplier entities for the new renewable energy
2        facility or new energy storage facility, as
3        applicable, which shall be referred to for purposes of
4        this paragraph (11) as the project, and the
5        applicant's or owner's action plan and schedule for
6        achieving those goals.
7            (B) For purposes of this paragraph (11), diversity
8        composition shall be based on the percentage, which
9        shall be a minimum of 25%, of eligible expenditures
10        for contract awards for materials and services (which
11        shall be defined in the plan) to business enterprises
12        owned by minority persons, women, or persons with
13        disabilities as defined in Section 2 of the Business
14        Enterprise for Minorities, Women, and Persons with
15        Disabilities Act, to LGBTQ business enterprises, to
16        veteran-owned business enterprises, and to business
17        enterprises located in environmental justice
18        communities. The diversity composition goals of the
19        plan may include eligible expenditures in areas for
20        vendor or supplier opportunities in addition to
21        development and construction of the project, and may
22        exclude from eligible expenditures materials and
23        services with limited market availability, limited
24        production and availability from suppliers in the
25        United States, such as solar panels and storage
26        batteries, and material and services that are subject

 

 

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1        to critical energy infrastructure or cybersecurity
2        requirements or restrictions. The plan may provide
3        that the diversity composition goals may be met
4        through Tier 1 Direct or Tier 2 subcontracting
5        expenditures or a combination thereof for the project.
6            (C) The plan shall provide for, but not be limited
7        to: (i) internal initiatives, including multi-tier
8        initiatives, by the applicant or owner, or by its
9        engineering, procurement and construction contractor
10        if one is used for the project, which for purposes of
11        this paragraph (11) shall be referred to as the EPC
12        contractor, to enable diverse businesses to be
13        considered fairly for selection to provide materials
14        and services; (ii) requirements for the applicant or
15        owner or its EPC contractor to proactively solicit and
16        utilize diverse businesses to provide materials and
17        services; and (iii) requirements for the applicant or
18        owner or its EPC contractor to hire a diverse
19        workforce for the project. The plan shall include a
20        description of the applicant's or owner's diversity
21        recruiting efforts both for the project and for other
22        areas of the applicant's or owner's business
23        operations. The plan shall provide for the imposition
24        of financial penalties on the applicant's or owner's
25        EPC contractor for failure to exercise best efforts to
26        comply with and execute the EPC contractor's diversity

 

 

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1        obligations under the plan. The plan may provide for
2        the applicant or owner to set aside a portion of the
3        work on the project to serve as an incubation program
4        for qualified businesses, as specified in the plan,
5        owned by minority persons, women, persons with
6        disabilities, LGBTQ persons, and veterans, and
7        businesses located in environmental justice
8        communities, seeking to enter the renewable energy
9        industry.
10            (D) The applicant or owner may submit a revised or
11        updated plan to the Commission from time to time as
12        circumstances warrant. The applicant or owner shall
13        file annual reports with the Commission detailing the
14        applicant's or owner's progress in implementing its
15        plan and achieving its goals and any modifications the
16        applicant or owner has made to its plan to better
17        achieve its diversity, equity and inclusion goals. The
18        applicant or owner shall file a final report on the
19        fifth June 1 following the commercial operation date
20        of the new renewable energy resource or new energy
21        storage facility, but the applicant or owner shall
22        thereafter continue to be subject to applicable
23        reporting requirements of Section 5-117 of the Public
24        Utilities Act.
25    (c-10) Equity accountability system. It is the purpose of
26this subsection (c-10) to create an equity accountability

 

 

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1system, which includes the minimum equity standards for all
2renewable energy procurements, the equity category of the
3Adjustable Block Program, and the equity prioritization for
4noncompetitive procurements, that is successful in advancing
5priority access to the clean energy economy for businesses and
6workers from communities that have been excluded from economic
7opportunities in the energy sector, have been subject to
8disproportionate levels of pollution, and have
9disproportionately experienced negative public health
10outcomes. Further, it is the purpose of this subsection to
11ensure that this equity accountability system is successful in
12advancing equity across Illinois by providing access to the
13clean energy economy for businesses and workers from
14communities that have been historically excluded from economic
15opportunities in the energy sector, have been subject to
16disproportionate levels of pollution, and have
17disproportionately experienced negative public health
18outcomes.
19        (1) Minimum equity standards. The Agency shall create
20    programs with the purpose of increasing access to and
21    development of equity eligible contractors, who are prime
22    contractors and subcontractors, across all of the programs
23    it manages. All applications for renewable energy credit
24    procurements shall comply with specific minimum equity
25    commitments. Starting in the delivery year immediately
26    following the next long-term renewable resources

 

 

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1    procurement plan, at least 10% of the project workforce
2    for each entity participating in a procurement program
3    outlined in this subsection (c-10) must be done by equity
4    eligible persons or equity eligible contractors. The
5    Agency shall increase the minimum percentage each delivery
6    year thereafter by increments that ensure a statewide
7    average of 30% of the project workforce for each entity
8    participating in a procurement program is done by equity
9    eligible persons or equity eligible contractors by 2030.
10    The Agency shall propose a schedule of percentage
11    increases to the minimum equity standards in its draft
12    revised renewable energy resources procurement plan
13    submitted to the Commission for approval pursuant to
14    paragraph (5) of subsection (b) of Section 16-111.5 of the
15    Public Utilities Act. In determining these annual
16    increases, the Agency shall have the discretion to
17    establish different minimum equity standards for different
18    types of procurements and different regions of the State
19    if the Agency finds that doing so will further the
20    purposes of this subsection (c-10). The proposed schedule
21    of annual increases shall be revisited and updated on an
22    annual basis. Revisions shall be developed with
23    stakeholder input, including from equity eligible persons,
24    equity eligible contractors, clean energy industry
25    representatives, and community-based organizations that
26    work with such persons and contractors.

 

 

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1            (A) At the start of each delivery year, the Agency
2        shall require a compliance plan from each entity
3        participating in a procurement program of subsection
4        (c) of this Section that demonstrates how they will
5        achieve compliance with the minimum equity standard
6        percentage for work completed in that delivery year.
7        If an entity applies for its approved vendor or
8        designee status between delivery years, the Agency
9        shall require a compliance plan at the time of
10        application.
11            (B) Halfway through each delivery year, the Agency
12        shall require each entity participating in a
13        procurement program to confirm that it will achieve
14        compliance in that delivery year, when applicable. The
15        Agency may offer corrective action plans to entities
16        that are not on track to achieve compliance.
17            (C) At the end of each delivery year, each entity
18        participating and completing work in that delivery
19        year in a procurement program of subsection (c) shall
20        submit a report to the Agency that demonstrates how it
21        achieved compliance with the minimum equity standards
22        percentage for that delivery year.
23            (D) The Agency shall prohibit participation in
24        procurement programs by an approved vendor or
25        designee, as applicable, or entities with which an
26        approved vendor or designee, as applicable, shares a

 

 

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1        common parent company if an approved vendor or
2        designee, as applicable, failed to meet the minimum
3        equity standards for the prior delivery year. Waivers
4        approved for lack of equity eligible persons or equity
5        eligible contractors in a geographic area of a project
6        shall not count against the approved vendor or
7        designee. The Agency shall offer a corrective action
8        plan for any such entities to assist them in obtaining
9        compliance and shall allow continued access to
10        procurement programs upon an approved vendor or
11        designee demonstrating compliance.
12            (E) The Agency shall pursue efficiencies achieved
13        by combining with other approved vendor or designee
14        reporting.
15        (2) Equity accountability system within the Adjustable
16    Block program. The equity category described in item (vi)
17    of subparagraph (K) of subsection (c) is only available to
18    applicants that are equity eligible contractors.
19        (3) Equity accountability system within competitive
20    procurements. Through its long-term renewable resources
21    procurement plan, the Agency shall develop requirements
22    for ensuring that competitive procurement processes,
23    including utility-scale solar, utility-scale wind, and
24    brownfield site photovoltaic projects, advance the equity
25    goals of this subsection (c-10). Subject to Commission
26    approval, the Agency shall develop bid application

 

 

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1    requirements and a bid evaluation methodology for ensuring
2    that utilization of equity eligible contractors, whether
3    as bidders or as participants on project development, is
4    optimized, including requiring that winning or successful
5    applicants for utility-scale projects are or will partner
6    with equity eligible contractors and giving preference to
7    bids through which a higher portion of contract value
8    flows to equity eligible contractors. To the extent
9    practicable, entities participating in competitive
10    procurements shall also be required to meet all the equity
11    accountability requirements for approved vendors and their
12    designees under this subsection (c-10). In developing
13    these requirements, the Agency shall also consider whether
14    equity goals can be further advanced through additional
15    measures.
16        (4) In the first revision to the long-term renewable
17    energy resources procurement plan and each revision
18    thereafter, the Agency shall include the following:
19            (A) The current status and number of equity
20        eligible contractors listed in the Energy Workforce
21        Equity Database designed in subsection (c-25),
22        including the number of equity eligible contractors
23        with current certifications as issued by the Agency.
24            (B) A mechanism for measuring, tracking, and
25        reporting project workforce at the approved vendor or
26        designee level, as applicable, which shall include a

 

 

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1        measurement methodology and records to be made
2        available for audit by the Agency or the Program
3        Administrator.
4            (C) A program for approved vendors, designees,
5        eligible persons, and equity eligible contractors to
6        receive trainings, guidance, and other support from
7        the Agency or its designee regarding the equity
8        category outlined in item (vi) of subparagraph (K) of
9        paragraph (1) of subsection (c) and in meeting the
10        minimum equity standards of this subsection (c-10).
11            (D) A process for certifying equity eligible
12        contractors and equity eligible persons. The
13        certification process shall coordinate with the Energy
14        Workforce Equity Database set forth in subsection
15        (c-25).
16            (E) An application for waiver of the minimum
17        equity standards of this subsection, which the Agency
18        shall have the discretion to grant in rare
19        circumstances. The Agency may grant such a waiver
20        where the applicant provides evidence of significant
21        efforts toward meeting the minimum equity commitment,
22        including: use of the Energy Workforce Equity
23        Database; efforts to hire or contract with entities
24        that hire eligible persons; and efforts to establish
25        contracting relationships with eligible contractors.
26        The Agency shall support applicants in understanding

 

 

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1        the Energy Workforce Equity Database and other
2        resources for pursuing compliance of the minimum
3        equity standards. Waivers shall be project-specific,
4        unless the Agency deems it necessary to grant a waiver
5        across a portfolio of projects, and in effect for no
6        longer than one year. Any waiver extension or
7        subsequent waiver request from an applicant shall be
8        subject to the requirements of this Section and shall
9        specify efforts made to reach compliance. When
10        considering whether to grant a waiver, and to what
11        extent, the Agency shall consider the degree to which
12        similarly situated applicants have been able to meet
13        these minimum equity commitments. For repeated waiver
14        requests for specific lack of eligible persons or
15        eligible contractors available, the Agency shall make
16        recommendations to target recruitment to add such
17        eligible persons or eligible contractors to the
18        database.
19        (5) The Agency shall collect information about work on
20    projects or portfolios of projects subject to these
21    minimum equity standards to ensure compliance with this
22    subsection (c-10). Reporting in furtherance of this
23    requirement may be combined with other annual reporting
24    requirements. Such reporting shall include proof of
25    certification of each equity eligible contractor or equity
26    eligible person during the applicable time period.

 

 

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1        (6) The Agency shall keep confidential all information
2    and communication that provides private or personal
3    information.
4        (7) Modifications to the equity accountability system.
5    As part of the update of the long-term renewable resources
6    procurement plan to be initiated in 2023, or sooner if the
7    Agency deems necessary, the Agency shall determine the
8    extent to which the equity accountability system described
9    in this subsection (c-10) has advanced the goals of this
10    amendatory Act of the 102nd General Assembly, including
11    through the inclusion of equity eligible persons and
12    equity eligible contractors in renewable energy credit
13    projects. If the Agency finds that the equity
14    accountability system has failed to meet those goals to
15    its fullest potential, the Agency may revise the following
16    criteria for future Agency procurements: (A) the
17    percentage of project workforce, or other appropriate
18    workforce measure, certified as equity eligible persons or
19    equity eligible contractors; (B) definitions for equity
20    investment eligible persons and equity investment eligible
21    community; and (C) such other modifications necessary to
22    advance the goals of this amendatory Act of the 102nd
23    General Assembly effectively. Such revised criteria may
24    also establish distinct equity accountability systems for
25    different types of procurements or different regions of
26    the State if the Agency finds that doing so will further

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1subparagraphs under subsection (c-10), the Agency shall deny
2the entity's ability to participate in procurement programs in
3subsection (c), including by withholding approved vendor or
4designee status. The Agency may require the entity to enter
5into a corrective action plan. An entity that is not
6recertified for failing to meet required equity actions in
7subparagraph (c-10) may reapply once they have a corrective
8action plan and achieve compliance with the minimum equity
9standards.
10    (d) Clean coal portfolio standard.
11        (1) The procurement plans shall include electricity
12    generated using clean coal. Each utility shall enter into
13    one or more sourcing agreements with the initial clean
14    coal facility, as provided in paragraph (3) of this
15    subsection (d), covering electricity generated by the
16    initial clean coal facility representing at least 5% of
17    each utility's total supply to serve the load of eligible
18    retail customers in 2015 and each year thereafter, as
19    described in paragraph (3) of this subsection (d), subject
20    to the limits specified in paragraph (2) of this
21    subsection (d). It is the goal of the State that by January
22    1, 2025, 25% of the electricity used in the State shall be
23    generated by cost-effective clean coal facilities. For
24    purposes of this subsection (d), "cost-effective" means
25    that the expenditures pursuant to such sourcing agreements
26    do not cause the limit stated in paragraph (2) of this

 

 

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

 

 

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

 

 

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1            (C) in 2012, the greater of an additional 0.5% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2011 or 1.5% of the
4        amount paid per kilowatthour by those customers during
5        the year ending May 31, 2009;
6            (D) in 2013, the greater of an additional 0.5% of
7        the amount paid per kilowatthour by those customers
8        during the year ending May 31, 2012 or 2% of the amount
9        paid per kilowatthour by those customers during the
10        year ending May 31, 2009; and
11            (E) thereafter, the total amount paid under
12        sourcing agreements with clean coal facilities
13        pursuant to the procurement plan for any single year
14        shall be reduced by an amount necessary to limit the
15        estimated average net increase due to the cost of
16        these resources included in the amounts paid by
17        eligible retail customers in connection with electric
18        service to no more than the greater of (i) 2.015% of
19        the amount paid per kilowatthour by those customers
20        during the year ending May 31, 2009 or (ii) the
21        incremental amount per kilowatthour paid for these
22        resources in 2013. These requirements may be altered
23        only as provided by statute.
24        No later than June 30, 2015, the Commission shall
25    review the limitation on the total amount paid under
26    sourcing agreements, if any, with clean coal facilities

 

 

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1    pursuant to this subsection (d) and report to the General
2    Assembly its findings as to whether that limitation unduly
3    constrains the amount of electricity generated by
4    cost-effective clean coal facilities that is covered by
5    sourcing agreements.
6        (3) Initial clean coal facility. In order to promote
7    development of clean coal facilities in Illinois, each
8    electric utility subject to this Section shall execute a
9    sourcing agreement to source electricity from a proposed
10    clean coal facility in Illinois (the "initial clean coal
11    facility") that will have a nameplate capacity of at least
12    500 MW when commercial operation commences, that has a
13    final Clean Air Act permit on June 1, 2009 (the effective
14    date of Public Act 95-1027), and that will meet the
15    definition of clean coal facility in Section 1-10 of this
16    Act when commercial operation commences. The sourcing
17    agreements with this initial clean coal facility shall be
18    subject to both approval of the initial clean coal
19    facility by the General Assembly and satisfaction of the
20    requirements of paragraph (4) of this subsection (d) and
21    shall be executed within 90 days after any such approval
22    by the General Assembly. The Agency and the Commission
23    shall have authority to inspect all books and records
24    associated with the initial clean coal facility during the
25    term of such a sourcing agreement. A utility's sourcing
26    agreement for electricity produced by the initial clean

 

 

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

 

 

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1            the synthesis gas derived from coal, from SNG, or
2            from natural gas, shall be credited against the
3            revenue requirement for this initial clean coal
4            facility;
5            (B) power purchase provisions, which shall:
6                (i) provide that the utility party to such
7            sourcing agreement shall pay the contract price
8            for electricity delivered under such sourcing
9            agreement;
10                (ii) require delivery of electricity to the
11            regional transmission organization market of the
12            utility that is party to such sourcing agreement;
13                (iii) require the utility party to such
14            sourcing agreement to buy from the initial clean
15            coal facility in each hour an amount of energy
16            equal to all clean coal energy made available from
17            the initial clean coal facility during such hour
18            times a fraction, the numerator of which is such
19            utility's retail market sales of electricity
20            (expressed in kilowatthours sold) in the State
21            during the prior calendar month and the
22            denominator of which is the total retail market
23            sales of electricity (expressed in kilowatthours
24            sold) in the State by utilities during such prior
25            month and the sales of electricity (expressed in
26            kilowatthours sold) in the State by alternative

 

 

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

 

 

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

 

 

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1                (iii) not require the utility to take physical
2            delivery of the electricity produced by the
3            facility;
4            (D) general provisions, which shall:
5                (i) specify a term of no more than 30 years,
6            commencing on the commercial operation date of the
7            facility;
8                (ii) provide that utilities shall maintain
9            adequate records documenting purchases under the
10            sourcing agreements entered into to comply with
11            this subsection (d) and shall file an accounting
12            with the load forecast that must be filed with the
13            Agency by July 15 of each year, in accordance with
14            subsection (d) of Section 16-111.5 of the Public
15            Utilities Act;
16                (iii) provide that all costs associated with
17            the initial clean coal facility will be
18            periodically reported to the Federal Energy
19            Regulatory Commission and to purchasers in
20            accordance with applicable laws governing
21            cost-based wholesale power contracts;
22                (iv) permit the Illinois Power Agency to
23            assume ownership of the initial clean coal
24            facility, without monetary consideration and
25            otherwise on reasonable terms acceptable to the
26            Agency, if the Agency so requests no less than 3

 

 

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1            years prior to the end of the stated contract
2            term;
3                (v) require the owner of the initial clean
4            coal facility to provide documentation to the
5            Commission each year, starting in the facility's
6            first year of commercial operation, accurately
7            reporting the quantity of carbon emissions from
8            the facility that have been captured and
9            sequestered and report any quantities of carbon
10            released from the site or sites at which carbon
11            emissions were sequestered in prior years, based
12            on continuous monitoring of such sites. If, in any
13            year after the first year of commercial operation,
14            the owner of the facility fails to demonstrate
15            that the initial clean coal facility captured and
16            sequestered at least 50% of the total carbon
17            emissions that the facility would otherwise emit
18            or that sequestration of emissions from prior
19            years has failed, resulting in the release of
20            carbon dioxide into the atmosphere, the owner of
21            the facility must offset excess emissions. Any
22            such carbon offsets must be permanent, additional,
23            verifiable, real, located within the State of
24            Illinois, and legally and practicably enforceable.
25            The cost of such offsets for the facility that are
26            not recoverable shall not exceed $15 million in

 

 

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

 

 

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1            requirements set forth in this item (v);
2                (vi) include limits on, and accordingly
3            provide for modification of, the amount the
4            utility is required to source under the sourcing
5            agreement consistent with paragraph (2) of this
6            subsection (d);
7                (vii) require Commission review: (1) to
8            determine the justness, reasonableness, and
9            prudence of the inputs to the formula referenced
10            in subparagraphs (A)(i) through (A)(iii) of
11            paragraph (3) of this subsection (d), prior to an
12            adjustment in those inputs including, without
13            limitation, the capital structure and return on
14            equity, fuel costs, and other operations and
15            maintenance costs and (2) to approve the costs to
16            be passed through to customers under the sourcing
17            agreement by which the utility satisfies its
18            statutory obligations. Commission review shall
19            occur no less than every 3 years, regardless of
20            whether any adjustments have been proposed, and
21            shall be completed within 9 months;
22                (viii) limit the utility's obligation to such
23            amount as the utility is allowed to recover
24            through tariffs filed with the Commission,
25            provided that neither the clean coal facility nor
26            the utility waives any right to assert federal

 

 

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1            pre-emption or any other argument in response to a
2            purported disallowance of recovery costs;
3                (ix) limit the utility's or alternative retail
4            electric supplier's obligation to incur any
5            liability until such time as the facility is in
6            commercial operation and generating power and
7            energy and such power and energy is being
8            delivered to the facility busbar;
9                (x) provide that the owner or owners of the
10            initial clean coal facility, which is the
11            counterparty to such sourcing agreement, shall
12            have the right from time to time to elect whether
13            the obligations of the utility party thereto shall
14            be governed by the power purchase provisions or
15            the contract for differences provisions;
16                (xi) append documentation showing that the
17            formula rate and contract, insofar as they relate
18            to the power purchase provisions, have been
19            approved by the Federal Energy Regulatory
20            Commission pursuant to Section 205 of the Federal
21            Power Act;
22                (xii) provide that any changes to the terms of
23            the contract, insofar as such changes relate to
24            the power purchase provisions, are subject to
25            review under the public interest standard applied
26            by the Federal Energy Regulatory Commission

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    comply with subsection (d) of this Section and item (5) of
2    subsection (d) of Section 16-115 of the Public Utilities
3    Act, covering electricity generated by such facilities. In
4    the case of sourcing agreements that are power purchase
5    agreements, the contract price for electricity sales shall
6    be established on a cost of service basis. In the case of
7    sourcing agreements that are contracts for differences,
8    the contract price from which the reference price is
9    subtracted shall be established on a cost of service
10    basis. The Agency and the Commission may approve any such
11    utility sourcing agreements that do not exceed cost-based
12    benchmarks developed by the procurement administrator, in
13    consultation with the Commission staff, Agency staff and
14    the procurement monitor, subject to Commission review and
15    approval. The Commission shall have authority to inspect
16    all books and records associated with these clean coal
17    facilities during the term of any such contract.
18        (6) Costs incurred under this subsection (d) or
19    pursuant to a contract entered into under this subsection
20    (d) shall be deemed prudently incurred and reasonable in
21    amount and the electric utility shall be entitled to full
22    cost recovery pursuant to the tariffs filed with the
23    Commission.
24    (d-5) Zero emission standard.
25        (1) Beginning with the delivery year commencing on
26    June 1, 2017, the Agency shall, for electric utilities

 

 

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1    that serve at least 100,000 retail customers in this
2    State, procure contracts with zero emission facilities
3    that are reasonably capable of generating cost-effective
4    zero emission credits in an amount approximately equal to
5    16% of the actual amount of electricity delivered by each
6    electric utility to retail customers in the State during
7    calendar year 2014. For an electric utility serving fewer
8    than 100,000 retail customers in this State that
9    requested, under Section 16-111.5 of the Public Utilities
10    Act, that the Agency procure power and energy for all or a
11    portion of the utility's Illinois load for the delivery
12    year commencing June 1, 2016, the Agency shall procure
13    contracts with zero emission facilities that are
14    reasonably capable of generating cost-effective zero
15    emission credits in an amount approximately equal to 16%
16    of the portion of power and energy to be procured by the
17    Agency for the utility. The duration of the contracts
18    procured under this subsection (d-5) shall be for a term
19    of 10 years ending May 31, 2027. The quantity of zero
20    emission credits to be procured under the contracts shall
21    be all of the zero emission credits generated by the zero
22    emission facility in each delivery year; however, if the
23    zero emission facility is owned by more than one entity,
24    then the quantity of zero emission credits to be procured
25    under the contracts shall be the amount of zero emission
26    credits that are generated from the portion of the zero

 

 

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

 

 

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1            by the Institute for Nuclear Power Operations;
2            fuel expenditures; non-fuel capital expenditures;
3            spent fuel expenditures; a return on working
4            capital; the cost of operational and market risks
5            that could be avoided by ceasing operation; and
6            any other costs necessary for continued
7            operations, provided that "necessary" means, for
8            purposes of this item (iii), that the costs could
9            reasonably be avoided only by ceasing operations
10            of the zero emission facility; and
11                (iv) a commitment to continue operating, for
12            the duration of the contract or contracts executed
13            under the procurement held under this subsection
14            (d-5), the zero emission facility that produces
15            the zero emission credits to be procured in the
16            procurement.
17            The information described in item (iii) of this
18        subparagraph (A) may be submitted on a confidential
19        basis and shall be treated and maintained by the
20        Agency, the procurement administrator, and the
21        Commission as confidential and proprietary and exempt
22        from disclosure under subparagraphs (a) and (g) of
23        paragraph (1) of Section 7 of the Freedom of
24        Information Act. The Office of Attorney General shall
25        have access to, and maintain the confidentiality of,
26        such information pursuant to Section 6.5 of the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1                "RTO" means regional transmission
2            organization.
3            (C) No later than 45 days after June 1, 2017 (the
4        effective date of Public Act 99-906), the Agency shall
5        publish its proposed zero emission standard
6        procurement plan. The plan shall be consistent with
7        the provisions of this paragraph (1) and shall provide
8        that winning bids shall be selected based on public
9        interest criteria that include, but are not limited
10        to, minimizing carbon dioxide emissions that result
11        from electricity consumed in Illinois and minimizing
12        sulfur dioxide, nitrogen oxide, and particulate matter
13        emissions that adversely affect the citizens of this
14        State. In particular, the selection of winning bids
15        shall take into account the incremental environmental
16        benefits resulting from the procurement, such as any
17        existing environmental benefits that are preserved by
18        the procurements held under Public Act 99-906 and
19        would cease to exist if the procurements were not
20        held, including the preservation of zero emission
21        facilities. The plan shall also describe in detail how
22        each public interest factor shall be considered and
23        weighted in the bid selection process to ensure that
24        the public interest criteria are applied to the
25        procurement and given full effect.
26            For purposes of developing the plan, the Agency

 

 

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1        shall consider any reports issued by a State agency,
2        board, or commission under House Resolution 1146 of
3        the 98th General Assembly and paragraph (4) of
4        subsection (d) of this Section, as well as publicly
5        available analyses and studies performed by or for
6        regional transmission organizations that serve the
7        State and their independent market monitors.
8            Upon publishing of the zero emission standard
9        procurement plan, copies of the plan shall be posted
10        and made publicly available on the Agency's website.
11        All interested parties shall have 10 days following
12        the date of posting to provide comment to the Agency on
13        the plan. All comments shall be posted to the Agency's
14        website. Following the end of the comment period, but
15        no more than 60 days later than June 1, 2017 (the
16        effective date of Public Act 99-906), the Agency shall
17        revise the plan as necessary based on the comments
18        received and file its zero emission standard
19        procurement plan with the Commission.
20            If the Commission determines that the plan will
21        result in the procurement of cost-effective zero
22        emission credits, then the Commission shall, after
23        notice and hearing, but no later than 45 days after the
24        Agency filed the plan, approve the plan or approve
25        with modification. For purposes of this subsection
26        (d-5), "cost effective" means the projected costs of

 

 

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1        procuring zero emission credits from zero emission
2        facilities do not cause the limit stated in paragraph
3        (2) of this subsection to be exceeded.
4            (C-5) As part of the Commission's review and
5        acceptance or rejection of the procurement results,
6        the Commission shall, in its public notice of
7        successful bidders:
8                (i) identify how the winning bids satisfy the
9            public interest criteria described in subparagraph
10            (C) of this paragraph (1) of minimizing carbon
11            dioxide emissions that result from electricity
12            consumed in Illinois and minimizing sulfur
13            dioxide, nitrogen oxide, and particulate matter
14            emissions that adversely affect the citizens of
15            this State;
16                (ii) specifically address how the selection of
17            winning bids takes into account the incremental
18            environmental benefits resulting from the
19            procurement, including any existing environmental
20            benefits that are preserved by the procurements
21            held under Public Act 99-906 and would have ceased
22            to exist if the procurements had not been held,
23            such as the preservation of zero emission
24            facilities;
25                (iii) quantify the environmental benefit of
26            preserving the resources identified in item (ii)

 

 

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1            of this subparagraph (C-5), including the
2            following:
3                    (aa) the value of avoided greenhouse gas
4                emissions measured as the product of the zero
5                emission facilities' output over the contract
6                term multiplied by the U.S. Environmental
7                Protection Agency eGrid subregion carbon
8                dioxide emission rate and the U.S. Interagency
9                Working Group on Social Cost of Carbon's price
10                in the August 2016 Technical Update using a 3%
11                discount rate, adjusted for inflation for each
12                delivery year; and
13                    (bb) the costs of replacement with other
14                zero carbon dioxide resources, including wind
15                and photovoltaic, based upon the simple
16                average of the following:
17                        (I) the price, or if there is more
18                    than one price, the average of the prices,
19                    paid for renewable energy credits from new
20                    utility-scale wind projects in the
21                    procurement events specified in item (i)
22                    of subparagraph (G) of paragraph (1) of
23                    subsection (c) of this Section; and
24                        (II) the price, or if there is more
25                    than one price, the average of the prices,
26                    paid for renewable energy credits from new

 

 

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1                    utility-scale solar projects and
2                    brownfield site photovoltaic projects in
3                    the procurement events specified in item
4                    (ii) of subparagraph (G) of paragraph (1)
5                    of subsection (c) of this Section and,
6                    after January 1, 2015, renewable energy
7                    credits from photovoltaic distributed
8                    generation projects in procurement events
9                    held under subsection (c) of this Section.
10            Each utility shall enter into binding contractual
11        arrangements with the winning suppliers.
12            The procurement described in this subsection
13        (d-5), including, but not limited to, the execution of
14        all contracts procured, shall be completed no later
15        than May 10, 2017. Based on the effective date of
16        Public Act 99-906, the Agency and Commission may, as
17        appropriate, modify the various dates and timelines
18        under this subparagraph and subparagraphs (C) and (D)
19        of this paragraph (1). The procurement and plan
20        approval processes required by this subsection (d-5)
21        shall be conducted in conjunction with the procurement
22        and plan approval processes required by subsection (c)
23        of this Section and Section 16-111.5 of the Public
24        Utilities Act, to the extent practicable.
25        Notwithstanding whether a procurement event is
26        conducted under Section 16-111.5 of the Public

 

 

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1        Utilities Act, the Agency shall immediately initiate a
2        procurement process on June 1, 2017 (the effective
3        date of Public Act 99-906).
4            (D) Following the procurement event described in
5        this paragraph (1) and consistent with subparagraph
6        (B) of this paragraph (1), the Agency shall calculate
7        the payments to be made under each contract for the
8        next delivery year based on the market price index for
9        that delivery year. The Agency shall publish the
10        payment calculations no later than May 25, 2017 and
11        every May 25 thereafter.
12            (E) Notwithstanding the requirements of this
13        subsection (d-5), the contracts executed under this
14        subsection (d-5) shall provide that the zero emission
15        facility may, as applicable, suspend or terminate
16        performance under the contracts in the following
17        instances:
18                (i) A zero emission facility shall be excused
19            from its performance under the contract for any
20            cause beyond the control of the resource,
21            including, but not restricted to, acts of God,
22            flood, drought, earthquake, storm, fire,
23            lightning, epidemic, war, riot, civil disturbance
24            or disobedience, labor dispute, labor or material
25            shortage, sabotage, acts of public enemy,
26            explosions, orders, regulations or restrictions

 

 

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1            imposed by governmental, military, or lawfully
2            established civilian authorities, which, in any of
3            the foregoing cases, by exercise of commercially
4            reasonable efforts the zero emission facility
5            could not reasonably have been expected to avoid,
6            and which, by the exercise of commercially
7            reasonable efforts, it has been unable to
8            overcome. In such event, the zero emission
9            facility shall be excused from performance for the
10            duration of the event, including, but not limited
11            to, delivery of zero emission credits, and no
12            payment shall be due to the zero emission facility
13            during the duration of the event.
14                (ii) A zero emission facility shall be
15            permitted to terminate the contract if legislation
16            is enacted into law by the General Assembly that
17            imposes or authorizes a new tax, special
18            assessment, or fee on the generation of
19            electricity, the ownership or leasehold of a
20            generating unit, or the privilege or occupation of
21            such generation, ownership, or leasehold of
22            generation units by a zero emission facility.
23            However, the provisions of this item (ii) do not
24            apply to any generally applicable tax, special
25            assessment or fee, or requirements imposed by
26            federal law.

 

 

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1                (iii) A zero emission facility shall be
2            permitted to terminate the contract in the event
3            that the resource requires capital expenditures in
4            excess of $40,000,000 that were neither known nor
5            reasonably foreseeable at the time it executed the
6            contract and that a prudent owner or operator of
7            such resource would not undertake.
8                (iv) A zero emission facility shall be
9            permitted to terminate the contract in the event
10            the Nuclear Regulatory Commission terminates the
11            resource's license.
12            (F) If the zero emission facility elects to
13        terminate a contract under subparagraph (E) of this
14        paragraph (1), then the Commission shall reopen the
15        docket in which the Commission approved the zero
16        emission standard procurement plan under subparagraph
17        (C) of this paragraph (1) and, after notice and
18        hearing, enter an order acknowledging the contract
19        termination election if such termination is consistent
20        with the provisions of this subsection (d-5).
21        (2) For purposes of this subsection (d-5), the amount
22    paid per kilowatthour means the total amount paid for
23    electric service expressed on a per kilowatthour basis.
24    For purposes of this subsection (d-5), the total amount
25    paid for electric service includes, without limitation,
26    amounts paid for supply, transmission, distribution,

 

 

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1    surcharges, and add-on taxes.
2        Notwithstanding the requirements of this subsection
3    (d-5), the contracts executed under this subsection (d-5)
4    shall provide that the total of zero emission credits
5    procured under a procurement plan shall be subject to the
6    limitations of this paragraph (2). For each delivery year,
7    the contractual volume receiving payments in such year
8    shall be reduced for all retail customers based on the
9    amount necessary to limit the net increase that delivery
10    year to the costs of those credits included in the amounts
11    paid by eligible retail customers in connection with
12    electric service to no more than 1.65% of the amount paid
13    per kilowatthour by eligible retail customers during the
14    year ending May 31, 2009. The result of this computation
15    shall apply to and reduce the procurement for all retail
16    customers, and all those customers shall pay the same
17    single, uniform cents per kilowatthour charge under
18    subsection (k) of Section 16-108 of the Public Utilities
19    Act. To arrive at a maximum dollar amount of zero emission
20    credits to be paid for the particular delivery year, the
21    resulting per kilowatthour amount shall be applied to the
22    actual amount of kilowatthours of electricity delivered by
23    the electric utility in the delivery year immediately
24    prior to the procurement, to all retail customers in its
25    service territory. Unpaid contractual volume for any
26    delivery year shall be paid in any subsequent delivery

 

 

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1    year in which such payments can be made without exceeding
2    the amount specified in this paragraph (2). The
3    calculations required by this paragraph (2) shall be made
4    only once for each procurement plan year. Once the
5    determination as to the amount of zero emission credits to
6    be paid is made based on the calculations set forth in this
7    paragraph (2), no subsequent rate impact determinations
8    shall be made and no adjustments to those contract amounts
9    shall be allowed. All costs incurred under those contracts
10    and in implementing this subsection (d-5) shall be
11    recovered by the electric utility as provided in this
12    Section.
13        No later than June 30, 2019, the Commission shall
14    review the limitation on the amount of zero emission
15    credits procured under this subsection (d-5) and report to
16    the General Assembly its findings as to whether that
17    limitation unduly constrains the procurement of
18    cost-effective zero emission credits.
19        (3) Six years after the execution of a contract under
20    this subsection (d-5), the Agency shall determine whether
21    the actual zero emission credit payments received by the
22    supplier over the 6-year period exceed the Average ZEC
23    Payment. In addition, at the end of the term of a contract
24    executed under this subsection (d-5), or at the time, if
25    any, a zero emission facility's contract is terminated
26    under subparagraph (E) of paragraph (1) of this subsection

 

 

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

 

 

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1        subsection (d-5), during the term of the contract.
2            (B) The average of the market price indices, as
3        defined in subparagraph (B) of paragraph (1) of this
4        subsection (d-5), during the term of the contract,
5        minus the baseline market price index, as defined in
6        subparagraph (B) of paragraph (1) of this subsection
7        (d-5).
8        If the subtraction yields a negative number, then the
9    Average ZEC Payment shall be zero.
10        (4) Cost-effective zero emission credits procured from
11    zero emission facilities shall satisfy the applicable
12    definitions set forth in Section 1-10 of this Act.
13        (5) The electric utility shall retire all zero
14    emission credits used to comply with the requirements of
15    this subsection (d-5).
16        (6) Electric utilities shall be entitled to recover
17    all of the costs associated with the procurement of zero
18    emission credits through an automatic adjustment clause
19    tariff in accordance with subsection (k) and (m) of
20    Section 16-108 of the Public Utilities Act, and the
21    contracts executed under this subsection (d-5) shall
22    provide that the utilities' payment obligations under such
23    contracts shall be reduced if an adjustment is required
24    under subsection (m) of Section 16-108 of the Public
25    Utilities Act.
26        (7) This subsection (d-5) shall become inoperative on

 

 

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1    January 1, 2028.
2    (d-10) Nuclear Plant Assistance; carbon mitigation
3credits.
4    (1) The General Assembly finds:
5        (A) The health, welfare, and prosperity of all
6    Illinois citizens require that the State of Illinois act
7    to avoid and not increase carbon emissions from electric
8    generation sources while continuing to ensure affordable,
9    stable, and reliable electricity to all citizens.
10        (B) Absent immediate action by the State to preserve
11    existing carbon-free energy resources, those resources may
12    retire, and the electric generation needs of Illinois'
13    retail customers may be met instead by facilities that
14    emit significant amounts of carbon pollution and other
15    harmful air pollutants at a high social and economic cost
16    until Illinois is able to develop other forms of clean
17    energy.
18        (C) The General Assembly finds that nuclear power
19    generation is necessary for the State's transition to 100%
20    clean energy, and ensuring continued operation of nuclear
21    plants advances environmental and public health interests
22    through providing carbon-free electricity while reducing
23    the air pollution profile of the Illinois energy
24    generation fleet.
25        (D) The clean energy attributes of nuclear generation
26    facilities support the State in its efforts to achieve

 

 

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1    100% clean energy.
2        (E) The State currently invests in various forms of
3    clean energy, including, but not limited to, renewable
4    energy, energy efficiency, and low-emission vehicles,
5    among others.
6        (F) The Environmental Protection Agency commissioned
7    an independent audit which provided a detailed assessment
8    of the financial condition of the Illinois nuclear fleet
9    to evaluate its financial viability and whether the
10    environmental benefits of such resources were at risk. The
11    report identified the risk of losing the environmental
12    benefits of several specific nuclear units. The report
13    also identified that the LaSalle County Generating Station
14    will continue to operate through 2026 and therefore is not
15    eligible to participate in the carbon mitigation credit
16    program.
17        (G) Nuclear plants provide carbon-free energy, which
18    helps to avoid many health-related negative impacts for
19    Illinois residents.
20        (H) The procurement of carbon mitigation credits
21    representing the environmental benefits of carbon-free
22    generation will further the State's efforts at achieving
23    100% clean energy and decarbonizing the electricity sector
24    in a safe, reliable, and affordable manner. Further, the
25    procurement of carbon emission credits will enhance the
26    health and welfare of Illinois residents through decreased

 

 

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1    reliance on more highly polluting generation.
2        (I) The General Assembly therefore finds it necessary
3    to establish carbon mitigation credits to ensure decreased
4    reliance on more carbon-intensive energy resources, for
5    transitioning to a fully decarbonized electricity sector,
6    and to help ensure health and welfare of the State's
7    residents.
8    (2) As used in this subsection:
9    "Baseline costs" means costs used to establish a customer
10protection cap that have been evaluated through an independent
11audit of a carbon-free energy resource conducted by the
12Environmental Protection Agency that evaluated projected
13annual costs for operation and maintenance expenses; fully
14allocated overhead costs, which shall be allocated using the
15methodology developed by the Institute for Nuclear Power
16Operations; fuel expenditures; nonfuel capital expenditures;
17spent fuel expenditures; a return on working capital; the cost
18of operational and market risks that could be avoided by
19ceasing operation; and any other costs necessary for continued
20operations, provided that "necessary" means, for purposes of
21this definition, that the costs could reasonably be avoided
22only by ceasing operations of the carbon-free energy resource.
23    "Carbon mitigation credit" means a tradable credit that
24represents the carbon emission reduction attributes of one
25megawatt-hour of energy produced from a carbon-free energy
26resource.

 

 

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1    "Carbon-free energy resource" means a generation facility
2that: (1) is fueled by nuclear power; and (2) is
3interconnected to PJM Interconnection, LLC.
4    (3) Procurement.
5        (A) Beginning with the delivery year commencing on
6    June 1, 2022, the Agency shall, for electric utilities
7    serving at least 3,000,000 retail customers in the State,
8    seek to procure contracts for no more than approximately
9    54,500,000 cost-effective carbon mitigation credits from
10    carbon-free energy resources because such credits are
11    necessary to support current levels of carbon-free energy
12    generation and ensure the State meets its carbon dioxide
13    emissions reduction goals. The Agency shall not make a
14    partial award of a contract for carbon mitigation credits
15    covering a fractional amount of a carbon-free energy
16    resource's projected output.
17        (B) Each carbon-free energy resource that intends to
18    participate in a procurement shall be required to submit
19    to the Agency the following information for the resource
20    on or before the date established by the Agency:
21            (i) the in-service date and remaining useful life
22        of the carbon-free energy resource;
23            (ii) the amount of power generated annually for
24        each of the past 10 years, which shall be used to
25        determine the capability of each facility;
26            (iii) a commitment to be reflected in any contract

 

 

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1        entered into pursuant to this subsection (d-10) to
2        continue operating the carbon-free energy resource at
3        a capacity factor of at least 88% annually on average
4        for the duration of the contract or contracts executed
5        under the procurement held under this subsection
6        (d-10), except in an instance described in
7        subparagraph (E) of paragraph (1) of subsection (d-5)
8        of this Section or made impracticable as a result of
9        compliance with law or regulation;
10            (iv) financial need and the risk of loss of the
11        environmental benefits of such resource, which shall
12        include the following information:
13                (I) the carbon-free energy resource's cost
14            projections, expressed on a per megawatt-hour
15            basis, over the next 5 delivery years, which shall
16            include the following: operation and maintenance
17            expenses; fully allocated overhead costs, which
18            shall be allocated using the methodology developed
19            by the Institute for Nuclear Power Operations;
20            fuel expenditures; nonfuel capital expenditures;
21            spent fuel expenditures; a return on working
22            capital; the cost of operational and market risks
23            that could be avoided by ceasing operation; and
24            any other costs necessary for continued
25            operations, provided that "necessary" means, for
26            purposes of this subitem (I), that the costs could

 

 

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1            reasonably be avoided only by ceasing operations
2            of the carbon-free energy resource; and
3                (II) the carbon-free energy resource's revenue
4            projections, including energy, capacity, ancillary
5            services, any other direct State support, known or
6            anticipated federal attribute credits, known or
7            anticipated tax credits, and any other direct
8            federal support.
9        The information described in this subparagraph (B) may
10    be submitted on a confidential basis and shall be treated
11    and maintained by the Agency, the procurement
12    administrator, and the Commission as confidential and
13    proprietary and exempt from disclosure under subparagraphs
14    (a) and (g) of paragraph (1) of Section 7 of the Freedom of
15    Information Act. The Office of the Attorney General shall
16    have access to, and maintain the confidentiality of, such
17    information pursuant to Section 6.5 of the Attorney
18    General Act.
19        (C) The Agency shall solicit bids for the contracts
20    described in this subsection (d-10) from carbon-free
21    energy resources that have satisfied the requirements of
22    subparagraph (B) of this paragraph (3). The contracts
23    procured pursuant to a procurement event shall reflect,
24    and be subject to, the following terms, requirements, and
25    limitations:
26            (i) Contracts are for delivery of carbon

 

 

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1        mitigation credits, and are not energy or capacity
2        sales contracts requiring physical delivery. Pursuant
3        to item (iii), contract payments shall fully deduct
4        the value of any monetized federal production tax
5        credits, credits issued pursuant to a federal clean
6        energy standard, and other federal credits if
7        applicable.
8            (ii) Contracts for carbon mitigation credits shall
9        commence with the delivery year beginning on June 1,
10        2022 and shall be for a term of 5 delivery years
11        concluding on May 31, 2027.
12            (iii) The price per carbon mitigation credit to be
13        paid under a contract for a given delivery year shall
14        be equal to an accepted bid price less the sum of:
15                (I) one of the following energy price indices,
16            selected by the bidder at the time of the bid for
17            the term of the contract:
18                    (aa) the weighted-average hourly day-ahead
19                price for the applicable delivery year at the
20                busbar of all resources procured pursuant to
21                this subsection (d-10), weighted by actual
22                production from the resources; or
23                    (bb) the projected energy price for the
24                PJM Interconnection, LLC Northern Illinois Hub
25                for the applicable delivery year determined
26                according to subitem (aa) of item (iii) of

 

 

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1                subparagraph (B) of paragraph (1) of
2                subsection (d-5).
3                (II) the Base Residual Auction Capacity Price
4            for the ComEd zone as determined by PJM
5            Interconnection, LLC, divided by 24 hours per day,
6            for the applicable delivery year for the first 3
7            delivery years, and then any subsequent delivery
8            years unless the PJM Interconnection, LLC applies
9            the Minimum Offer Price Rule to participating
10            carbon-free energy resources because they supply
11            carbon mitigation credits pursuant to this Section
12            at which time, upon notice by the carbon-free
13            energy resource to the Commission and subject to
14            the Commission's confirmation, the value under
15            this subitem shall be zero, as further described
16            in the carbon mitigation credit procurement plan;
17            and
18                (III) any value of monetized federal tax
19            credits, direct payments, or similar subsidy
20            provided to the carbon-free energy resource from
21            any unit of government that is not already
22            reflected in energy prices.
23            If the price-per-megawatt-hour calculation
24        performed under item (iii) of this subparagraph (C)
25        for a given delivery year results in a net positive
26        value, then the electric utility counterparty to the

 

 

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1        contract shall multiply such net value by the
2        applicable contract quantity and remit the amount to
3        the supplier.
4            To protect retail customers from retail rate
5        impacts that may arise upon the initiation of carbon
6        policy changes, if the price-per-megawatt-hour
7        calculation performed under item (iii) of this
8        subparagraph (C) for a given delivery year results in
9        a net negative value, then the supplier counterparty
10        to the contract shall multiply such net value by the
11        applicable contract quantity and remit such amount to
12        the electric utility counterparty. The electric
13        utility shall reflect such amounts remitted by
14        suppliers as a credit on its retail customer bills as
15        soon as practicable.
16            (iv) To ensure that retail customers in Northern
17        Illinois do not pay more for carbon mitigation credits
18        than the value such credits provide, and
19        notwithstanding the provisions of this subsection
20        (d-10), the Agency shall not accept bids for contracts
21        that exceed a customer protection cap equal to the
22        baseline costs of carbon-free energy resources.
23            The baseline costs for the applicable year shall
24        be the following:
25                (I) For the delivery year beginning June 1,
26            2022, the baseline costs shall be an amount equal

 

 

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1            to $30.30 per megawatt-hour.
2                (II) For the delivery year beginning June 1,
3            2023, the baseline costs shall be an amount equal
4            to $32.50 per megawatt-hour.
5                (III) For the delivery year beginning June 1,
6            2024, the baseline costs shall be an amount equal
7            to $33.43 per megawatt-hour.
8                (IV) For the delivery year beginning June 1,
9            2025, the baseline costs shall be an amount equal
10            to $33.50 per megawatt-hour.
11                (V) For the delivery year beginning June 1,
12            2026, the baseline costs shall be an amount equal
13            to $34.50 per megawatt-hour.
14            An Environmental Protection Agency consultant
15        forecast, included in a report issued April 14, 2021,
16        projects that a carbon-free energy resource has the
17        opportunity to earn on average approximately $30.28
18        per megawatt-hour, for the sale of energy and capacity
19        during the time period between 2022 and 2027.
20        Therefore, the sale of carbon mitigation credits
21        provides the opportunity to receive an additional
22        amount per megawatt-hour in addition to the projected
23        prices for energy and capacity.
24            Although actual energy and capacity prices may
25        vary from year-to-year, the General Assembly finds
26        that this customer protection cap will help ensure

 

 

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1        that the cost of carbon mitigation credits will be
2        less than its value, based upon the social cost of
3        carbon identified in the Technical Support Document
4        issued in February 2021 by the U.S. Interagency
5        Working Group on Social Cost of Greenhouse Gases and
6        the PJM Interconnection, LLC carbon dioxide marginal
7        emission rate for 2020, and that a carbon-free energy
8        resource receiving payment for carbon mitigation
9        credits receives no more than necessary to keep those
10        units in operation.
11        (D) No later than 7 days after the effective date of
12    this amendatory Act of the 102nd General Assembly, the
13    Agency shall publish its proposed carbon mitigation credit
14    procurement plan. The Plan shall provide that winning bids
15    shall be selected by taking into consideration which
16    resources best match public interest criteria that
17    include, but are not limited to, minimizing carbon dioxide
18    emissions that result from electricity consumed in
19    Illinois and minimizing sulfur dioxide, nitrogen oxide,
20    and particulate matter emissions that adversely affect the
21    citizens of this State. The selection of winning bids
22    shall also take into account the incremental environmental
23    benefits resulting from the procurement or procurements,
24    such as any existing environmental benefits that are
25    preserved by a procurement held under this subsection
26    (d-10) and would cease to exist if the procurement were

 

 

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1    not held, including the preservation of carbon-free energy
2    resources. For those bidders having the same public
3    interest criteria score, the relative ranking of such
4    bidders shall be determined by price. The Plan shall
5    describe in detail how each public interest factor shall
6    be considered and weighted in the bid selection process to
7    ensure that the public interest criteria are applied to
8    the procurement. The Plan shall, to the extent practical
9    and permissible by federal law, ensure that successful
10    bidders make commercially reasonable efforts to apply for
11    federal tax credits, direct payments, or similar subsidy
12    programs that support carbon-free generation and for which
13    the successful bidder is eligible. Upon publishing of the
14    carbon mitigation credit procurement plan, copies of the
15    plan shall be posted and made publicly available on the
16    Agency's website. All interested parties shall have 7 days
17    following the date of posting to provide comment to the
18    Agency on the plan. All comments shall be posted to the
19    Agency's website. Following the end of the comment period,
20    but no more than 19 days later than the effective date of
21    this amendatory Act of the 102nd General Assembly, the
22    Agency shall revise the plan as necessary based on the
23    comments received and file its carbon mitigation credit
24    procurement plan with the Commission.
25        (E) If the Commission determines that the plan is
26    likely to result in the procurement of cost-effective

 

 

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1    carbon mitigation credits, then the Commission shall,
2    after notice and hearing and opportunity for comment, but
3    no later than 42 days after the Agency filed the plan,
4    approve the plan or approve it with modification. For
5    purposes of this subsection (d-10), "cost-effective" means
6    carbon mitigation credits that are procured from
7    carbon-free energy resources at prices that are within the
8    limits specified in this paragraph (3). As part of the
9    Commission's review and acceptance or rejection of the
10    procurement results, the Commission shall, in its public
11    notice of successful bidders:
12            (i) identify how the selected carbon-free energy
13        resources satisfy the public interest criteria
14        described in this paragraph (3) of minimizing carbon
15        dioxide emissions that result from electricity
16        consumed in Illinois and minimizing sulfur dioxide,
17        nitrogen oxide, and particulate matter emissions that
18        adversely affect the citizens of this State;
19            (ii) specifically address how the selection of
20        carbon-free energy resources takes into account the
21        incremental environmental benefits resulting from the
22        procurement, including any existing environmental
23        benefits that are preserved by the procurements held
24        under this amendatory Act of the 102nd General
25        Assembly and would have ceased to exist if the
26        procurements had not been held, such as the

 

 

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1        preservation of carbon-free energy resources;
2            (iii) quantify the environmental benefit of
3        preserving the carbon-free energy resources procured
4        pursuant to this subsection (d-10), including the
5        following:
6                (I) an assessment value of avoided greenhouse
7            gas emissions measured as the product of the
8            carbon-free energy resources' output over the
9            contract term, using generally accepted
10            methodologies for the valuation of avoided
11            emissions; and
12                (II) an assessment of costs of replacement
13            with other carbon-free energy resources and
14            renewable energy resources, including wind and
15            photovoltaic generation, based upon an assessment
16            of the prices paid for renewable energy credits
17            through programs and procurements conducted
18            pursuant to subsection (c) of Section 1-75 of this
19            Act, and the additional storage necessary to
20            produce the same or similar capability of matching
21            customer usage patterns.
22        (F) The procurements described in this paragraph (3),
23    including, but not limited to, the execution of all
24    contracts procured, shall be completed no later than
25    December 3, 2021. The procurement and plan approval
26    processes required by this paragraph (3) shall be

 

 

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1    conducted in conjunction with the procurement and plan
2    approval processes required by Section 16-111.5 of the
3    Public Utilities Act, to the extent practicable. However,
4    the Agency and Commission may, as appropriate, modify the
5    various dates and timelines under this subparagraph and
6    subparagraphs (D) and (E) of this paragraph (3) to meet
7    the December 3, 2021 contract execution deadline.
8    Following the completion of such procurements, and
9    consistent with this paragraph (3), the Agency shall
10    calculate the payments to be made under each contract in a
11    timely fashion.
12        (F-1) Costs incurred by the electric utility pursuant
13    to a contract authorized by this subsection (d-10) shall
14    be deemed prudently incurred and reasonable in amount, and
15    the electric utility shall be entitled to full cost
16    recovery pursuant to a tariff or tariffs filed with the
17    Commission.
18        (G) The counterparty electric utility shall retire all
19    carbon mitigation credits used to comply with the
20    requirements of this subsection (d-10).
21        (H) If a carbon-free energy resource is sold to
22    another owner, the rights, obligations, and commitments
23    under this subsection (d-10) shall continue to the
24    subsequent owner.
25        (I) This subsection (d-10) shall become inoperative on
26    January 1, 2028.

 

 

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1    (e) The draft procurement plans are subject to public
2comment, as required by Section 16-111.5 of the Public
3Utilities Act.
4    (f) The Agency shall submit the final procurement plan to
5the Commission. The Agency shall revise a procurement plan if
6the Commission determines that it does not meet the standards
7set forth in Section 16-111.5 of the Public Utilities Act.
8    (g) The Agency shall assess fees to each affected utility
9to recover the costs incurred in preparation of the annual
10procurement plan for the utility.
11    (h) The Agency shall assess fees to each bidder to recover
12the costs incurred in connection with a competitive
13procurement process.
14    (i) A renewable energy credit, carbon emission credit,
15zero emission credit, or carbon mitigation credit can only be
16used once to comply with a single portfolio or other standard
17as set forth in subsection (c), subsection (d), or subsection
18(d-5) of this Section, respectively. A renewable energy
19credit, carbon emission credit, zero emission credit, or
20carbon mitigation credit cannot be used to satisfy the
21requirements of more than one standard. If more than one type
22of credit is issued for the same megawatt hour of energy, only
23one credit can be used to satisfy the requirements of a single
24standard. After such use, the credit must be retired together
25with any other credits issued for the same megawatt hour of
26energy.

 

 

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1(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
2103-580, eff. 12-8-23.)
 
3    Section 10. The Illinois Municipal Code is amended by
4changing Section 11-13-26 as follows:
 
5    (65 ILCS 5/11-13-26)
6    Sec. 11-13-26. Wind farms. Notwithstanding any other
7provision of law:
8        (a) A municipality may regulate wind farms and
9    electric-generating wind devices within its zoning
10    jurisdiction and within the 1.5 mile radius surrounding
11    its zoning jurisdiction. There shall be at least one
12    public hearing not more than 30 days prior to a siting
13    decision by the corporate authorities of a municipality.
14    Notice of the hearing shall be published in a newspaper of
15    general circulation in the municipality. A commercial wind
16    energy facility owner, as defined in the Renewable Energy
17    Facilities Agricultural Impact Mitigation Act, must enter
18    into an agricultural impact mitigation agreement with the
19    Department of Agriculture prior to the date of the
20    required public hearing. A commercial wind energy facility
21    owner seeking an extension of a permit granted by a
22    municipality prior to July 24, 2015 (the effective date of
23    Public Act 99-132) must enter into an agricultural impact
24    mitigation agreement with the Department of Agriculture

 

 

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1    prior to a decision by the municipality to grant the
2    permit extension. A municipality may allow test wind
3    towers to be sited without formal approval by the
4    corporate authorities of the municipality. Test wind
5    towers must be dismantled within 3 years of installation.
6    For the purposes of this Section, "test wind towers" are
7    wind towers that are designed solely to collect wind
8    generation data.
9        (b) A municipality may not require a wind tower or
10    other renewable energy system that is used exclusively by
11    an end user to be setback more than 1.1 times the height of
12    the renewable energy system from the end user's property
13    line. A setback requirement imposed by a municipality on a
14    renewable energy system may not be more restrictive than
15    as provided under this subsection. This subsection is a
16    limitation of home rule powers and functions under
17    subsection (i) of Section 6 of Article VII of the Illinois
18    Constitution on the concurrent exercise by home rule units
19    of powers and functions exercised by the State.
20(Source: P.A. 99-123, eff. 1-1-16; 99-132, eff. 7-24-15;
2199-642, eff. 7-28-16; 100-598, eff. 6-29-18.)
 
22    Section 15. The Renewable Energy Facilities Agricultural
23Impact Mitigation Act is amended by changing Sections 1, 5,
2410, and 15 as follows:
 

 

 

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1    (505 ILCS 147/1)
2    Sec. 1. Short title. This Act may be cited as the Renewable
3Energy Facilities Agricultural Impact Mitigation Act.
4(Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
 
5    (505 ILCS 147/5)
6    Sec. 5. Purpose. The primary purpose of this Act is to
7promote the State's welfare by protecting landowners during
8the construction and deconstruction of commercial renewable
9energy facilities, pipelines, electric lines, and battery
10energy storage systems to ensure that land affected by these
11projects is restored to its pre-construction condition and
12function.
13(Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
 
14    (505 ILCS 147/10)
15    Sec. 10. Definitions. As used in this Act:
16    "Abandonment of a commercial wind energy facility" means
17when deconstruction has not been completed within 18 months
18after the commercial wind energy facility reaches the end of
19its useful life. For purposes of this definition, a commercial
20wind energy facility will be presumed to have reached the end
21of its useful life if (1) no electricity is generated for a
22continuous period of 12 months and (2) the commercial wind
23energy facility owner fails, for a period of 6 consecutive
24months, to pay the landowner amounts owed in accordance with

 

 

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1the underlying agreement.
2    "Abandonment of a commercial solar energy facility" means
3when deconstruction has not been completed within 12 months
4after the commercial solar energy facility reaches the end of
5its useful life. For purposes of this definition, a commercial
6solar energy facility shall be presumed to have reached the
7end of its useful life if the commercial solar energy facility
8owner fails, for a period of 6 consecutive months, to pay the
9landowner amounts owed in accordance with the underlying
10agreement.
11    "Agricultural impact mitigation agreement" means an
12agreement between the pipeline owner, battery energy storage
13system owner, electric line owner, commercial wind energy
14facility owner, or the commercial solar energy facility owner
15and the Department of Agriculture described in Section 15 of
16this Act.
17    "Agricultural inspector" means a person hired by a
18pipeline, electric line owner, battery energy storage system,
19or commercial solar or wind energy facility and approved by
20the Department who will work with the facility throughout the
21construction and deconstruction phases to ensure compliance
22with the provisions of the agricultural impact mitigation
23agreement.
24    "Agricultural land" means real property or land used for
25cropland, hay land, pasture, managed woodlands, truck gardens,
26farm-to-market operations, garden-to-market operations,

 

 

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1farmsteads, commercial agriculture-related facilities,
2feedlots, livestock confinement systems, land on which farm
3buildings are located, and land in government set-aside
4programs.
5    "Battery energy storage system" means a facility or
6devices that enable energy from renewable energy facilities,
7like solar and wind, to be stored and discharged when needed.
8"Battery energy storage system" includes all components of the
9system necessary to receive, store, and discharge energy.
10    "Battery energy storage system owner" means a private
11commercial enterprise that owns a battery energy storage
12system.
13    "Commercial renewable energy facility " means a commercial
14wind energy facility or commercial solar energy facility as
15defined in this Act.
16    "Commercial solar energy facility" means a commercial
17solar energy system, as defined in Section 10-720 of the
18Property Tax Code solar energy conversion facility equal to or
19greater than 500 kilowatts in total nameplate capacity,
20including a solar energy conversion facility seeking an
21extension of a permit to construct granted by a county or
22municipality before the effective date of this amendatory Act
23of the 100th General Assembly. "Commercial solar energy
24facility" does not include a utility-scale solar energy
25facility being constructed at a site that was eligible to
26participate in a procurement event conducted by the Illinois

 

 

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1Power Agency under subsection (c-5) of Section 1-75 of the
2Illinois Power Agency Act include a solar energy conversion
3facility: (1) for which a permit to construct has been issued
4before the effective date of this amendatory Act of the 100th
5General Assembly; (2) that is located on land owned by the
6commercial solar energy facility owner; (3) that was
7constructed before the effective date of this amendatory Act
8of the 100th General Assembly; or (4) that is located on the
9customer side of the customer's electric meter and is
10primarily used to offset that customer's electricity load and
11is limited in nameplate capacity to less than or equal to 2,000
12kilowatts.
13    "Commercial solar energy facility owner" means a private
14commercial enterprise that owns a commercial solar energy
15facility. A commercial solar energy facility owner is not nor
16shall it be deemed to be a public utility as defined in the
17Public Utilities Act.
18    "Commercial wind energy facility" means a wind energy
19conversion facility of equal or greater than 500 kilowatts in
20total nameplate generating capacity. "Commercial wind energy
21facility" includes a wind energy conversion facility seeking
22an extension of a permit to construct granted by a county or
23municipality before the effective date of this Act.
24"Commercial wind energy facility" does not include a wind
25energy conversion facility: (1) that has submitted a complete
26permit application to a county or municipality and for which

 

 

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1the hearing on the completed application has commenced on the
2date provided in the public hearing notice, which must be
3before the effective date of this Act; (2) for which a permit
4to construct has been issued before the effective date of this
5Act; or (3) that was constructed before the effective date of
6this Act.
7    "Commercial wind energy facility owner" means a private
8commercial enterprise that owns or operates a commercial wind
9energy facility. A commercial wind energy facility owner is
10not nor shall it be deemed to be a public utility as defined in
11the Public Utilities Act.
12    "Construction" means the installation, preparation for
13installation, or repair of a pipeline, battery energy storage
14system, electric line, or commercial renewable energy
15facility.
16    "County" means the county where the pipeline, battery
17energy storage system, electric line, or commercial renewable
18energy facility is located.
19    "Deconstruction" means the removal of a battery energy
20storage system or commercial renewable energy facility from
21the property of a landowner and the restoration of that
22property as provided in the agricultural impact mitigation
23agreement.
24    "Department" means the Department of Agriculture.
25    "Electric line" means any part of electric power
26facilities used to transmit or supply electricity that

 

 

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1requires a certificate issued by the Illinois Commerce
2Commission and includes substations, switching stations,
3poles, towers, and associated appurtenances.
4    "Electric line owner" means a private commercial
5enterprise that owns an electric line.
6    "Landowner" means any person company, or entity who owns
7agricultural land in the State of Illinois (1) with an
8ownership interest in property that is and from whom the owner
9of a pipeline, electric line, battery energy storage system,
10or commercial renewable energy facility is seeking, or has
11obtained, a temporary or permanent easement. "Landowner"
12includes any person, company, or entity legally authorized by
13a landowner to make decisions regarding such property used for
14agricultural purposes and (2) that is a party to an underlying
15agreement.
16    "Pipeline" means any pipe or appurtenance that crosses or
17is located in Illinois that is associated with the conveyance
18of oil, natural gas, propane, carbon dioxide, or other medium
19that requires a certificate issued by the Federal Regulatory
20Commission, the Pipeline and Hazardous Materials Safety
21Administration, or a certificate issued by the Illinois
22Commerce Commission.
23    "Pipeline owner" means a private commercial enterprise or
24any public utility that owns a pipeline.
25    "Project" means any planned enterprise or undertaking
26under this Act that requires an agricultural impact mitigation

 

 

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1agreement.
2    "Project area" means the geographic footprint or property
3boundary of the project within which construction, operation,
4and maintenance will occur, and includes setback zones as
5required by local, State, or federal regulations.
6    "Project owner" means any owner of the project, including
7a pipeline owner, a battery energy storage system owner, an
8electric line owner, or a commercial renewable energy facility
9owner of a commercial wind energy facility or a commercial
10solar energy facility.
11    "Underlying agreement" means the written agreement with a
12landowner, including, but not limited to, an easement, option,
13lease, or license, under the terms of which another person has
14constructed, constructs, or intends to construct a pipeline,
15battery energy storage system, electric line, or commercial
16wind energy facility or commercial solar energy facility on
17the property of the landowner.
18(Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
 
19    (505 ILCS 147/15)
20    Sec. 15. Agricultural impact mitigation agreement.
21    (a) A pipeline owner, a battery energy storage system
22owner, an electric line owner, or a commercial renewable
23energy facility owner of a commercial wind energy facility or
24a commercial solar energy facility that is located on
25landowner property shall enter into an agricultural impact

 

 

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1mitigation agreement with the Department. The agricultural
2impact agreement shall outline outlining construction and
3deconstruction standards and policies designed to preserve the
4integrity of any agricultural land that is impacted by the
5construction or deconstruction of a pipeline, battery energy
6storage system, electric line, or commercial renewable energy
7facility construction and deconstruction. The construction and
8deconstruction of any pipeline, battery energy storage system,
9electric line, or commercial renewable solar energy facility
10shall be in conformance with the Department's standard
11agricultural impact mitigation agreement referenced in
12subsection (g) (f) of this Section. Except as provided in
13subsections subsection (a-5), (a-10), and (a-15) of this
14Section, the terms and conditions of the Department's standard
15agricultural impact mitigation agreement are subject to and
16may be modified by an underlying agreement between the
17landowner and the project owner commercial solar energy
18facility owner.
19    (a-5) Prior to the commencement of construction, a
20commercial solar energy facility owner shall submit to the
21county in which the commercial solar facility is to be located
22a deconstruction plan. A commercial solar energy facility
23owner shall provide the county with an appropriate financial
24assurance mechanism consistent with the Department's standard
25agricultural impact mitigation agreement for and to assure
26deconstruction in the event of an abandonment of a commercial

 

 

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1solar energy facility.
2    (a-10) Prior to the commencement of construction, a
3commercial wind energy facility owner shall submit to the
4county in which the commercial wind energy facility is to be
5located a deconstruction plan. A commercial wind energy
6facility owner shall provide the county with an appropriate
7financial assurance mechanism consistent with the Department's
8standard agricultural impact mitigation agreement to assure
9deconstruction in the event of an abandonment of a commercial
10wind energy facility.
11    (a-15) Prior to the commencement of construction, a
12battery energy storage system owner shall submit to the county
13in which the battery energy storage system is to be located a
14deconstruction plan. A battery energy storage system owner
15shall provide the county with an appropriate financial
16assurance mechanism consistent with the Department's standard
17agricultural impact mitigation agreement to assure
18deconstruction in the event of an abandonment of a battery
19energy storage system.
20    (a-20) Prior to the commencement of construction, a
21pipeline owner shall submit an executed agricultural impact
22mitigation agreement to the Federal Energy Regulatory
23Commission or to the Pipeline and Hazardous Material Safety
24Administration of the federal Department of Transportation.
25The executed agricultural impact mitigation agreement shall be
26included as part of the pipeline's submissions to the Federal

 

 

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1Energy Regulatory Commission or the Pipeline and Hazardous
2Material Safety Administration, and the pipeline shall request
3the Federal Energy Regulatory Commission or the Pipeline and
4Hazardous Material Safety Administration to include a
5statement affirming the pipeline's adherence to the
6agricultural impact mitigation agreement's construction
7standards and policies in any environmental assessment or
8environmental impact statement that may be prepared on the
9pipeline.
10    (a-25) Prior to the commencement of construction, an
11electric line owner shall submit to the Illinois Commerce
12Commission an executed agricultural impact mitigation
13agreement. The electric line owner shall include a statement
14affirming the electric line's adherence to the agricultural
15impact mitigation agreement's construction standards and
16policies in any environmental assessment or environmental
17impact statement that may be prepared on the electric line.
18    (a-30) A battery energy storage system owner shall include
19a statement affirming the battery energy storage system's
20adherence to the agricultural impact mitigation agreement's
21construction standards and policies in any environmental
22assessment or environmental impact statement that may be
23prepared on the battery energy storage system. A battery
24energy storage system owner shall comply with all applicable
25local, State, and federal regulations.
26    (b) The agricultural impact mitigation agreement for a

 

 

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1commercial wind energy facility shall include, but is not
2limited to, such items as restoration of agricultural land
3affected by construction, deconstruction (including upon
4abandonment of a commercial wind energy facility),
5construction staging, and storage areas; support structures;
6aboveground facilities; guy wires and anchors; underground
7cabling depth; topsoil replacement; protection and repair of
8agricultural drainage tiles; rock removal; repair of
9compaction and rutting; construction during wet weather; land
10leveling; prevention of soil erosion; repair of damaged soil
11conservation practices; compensation for damages to private
12property; clearing of trees and brush; interference with
13irrigation systems; access roads; weed control; pumping of
14water from open excavations; advance notice of access to
15private property; indemnification of landowners; and
16deconstruction plans and financial assurance for
17deconstruction (including upon abandonment of a commercial
18wind energy facility).
19    (b-5) The agricultural impact mitigation agreement for a
20commercial solar energy facility shall include, but is not
21limited to, such items as restoration of agricultural land
22affected by construction, deconstruction (including upon
23abandonment of a commercial solar energy facility); support
24structures; aboveground facilities; guy wires and anchors;
25underground cabling depth; topsoil removal and replacement;
26rerouting and permanent repair of agricultural drainage tiles;

 

 

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1rock removal; repair of compaction and rutting; construction
2during wet weather; land leveling; prevention of soil erosion;
3repair of damaged soil conservation practices; compensation
4for damages to private property; clearing of trees and brush;
5access roads; weed control; advance notice of access to
6private property; indemnification of landowners; and
7deconstruction plans and financial assurance for
8deconstruction (including upon abandonment of a commercial
9solar energy facility). The commercial solar energy facility
10owner shall enter into one agricultural impact mitigation
11agreement for each commercial solar energy facility.
12    (b-10) The agricultural impact mitigation agreement for a
13battery energy storage system shall include, but is not
14limited to, such items as restoration of agricultural land
15affected by construction; deconstruction (including upon
16abandonment of a battery energy storage system); support
17structures and components; aboveground facilities; underground
18cabling depth; topsoil removal and replacement; rerouting and
19permanent repair of agricultural drainage tile; rock removal;
20repair of compaction and rutting; construction during wet
21weather; land leveling; prevention of soil erosion; repair of
22damaged soil conservation practices; compensation for damages
23to private property; clearing of trees and brush; access
24roads; weed control; advance notice of access to private
25property; indemnification of landowners; and deconstruction
26plans and financial assurance for deconstruction (including

 

 

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1upon abandonment of a battery storage facility). The battery
2energy storage system owner shall enter into one agricultural
3impact mitigation agreement for each battery energy storage
4system.
5    (b-15) The agricultural impact mitigation agreement of a
6pipeline shall include, but is not limited to, such items as
7restoration of agricultural land affected by construction and
8repair of the pipeline; aboveground facilities; underground
9pipeline depth; topsoil removal and replacement; rerouting and
10permanent repair of agricultural drainage tiles; interference
11with irrigation systems; weed control; rock removal; repair of
12compaction and rutting; construction during wet weather; land
13leveling; prevention of soil erosion; repair of damaged soil
14conservation practices; compensation for damages to private
15property; clearing of trees and brush; access roads; advance
16notice to access to private property; and indemnification of
17landowners. The pipeline owner shall enter into one
18agricultural impact mitigation agreement for each pipeline.
19    (b-20) The agricultural impact mitigation agreement for an
20electric line shall include, but is not limited to, su