103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5169

 

Introduced 2/9/2024, by Rep. Eva-Dina Delgado

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-75
220 ILCS 5/16-115D

    Amends the Illinois Power Agency Act. Removes the requirement for the Illinois Power Agency to annually determine the amount of utility-scale renewable energy credits it will include each year from the self-direct renewable portfolio standard compliance program. Provides that the self-direct credit amount for each renewable energy credit supplied shall be determined annually and is equal to the volumetric charge collected under a provision in the Public Utilities Act. Provides that the approved self-direct credit amount shall be multiplied by each renewable energy credit procured by participating self-direct customers for up to 100% of the self-direct customer's annual consumption. Provides that the self-direct customer's utility bill credit amount shall consist of a credit towards the utility-scale renewable energy portion of the volumetric charge and shall not include a credit toward the portion of the volumetric charge associated with procuring renewable energy credits through existing and future contracts under the Adjustable Block Program, the Solar for All Program, and a specified provision of the Act. Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities. Effective immediately.


LRB103 39295 CES 69449 b

 

 

A BILL FOR

 

HB5169LRB103 39295 CES 69449 b

1    AN ACT concerning regulation.
 
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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

HB5169- 30 -LRB103 39295 CES 69449 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

 

 

HB5169- 31 -LRB103 39295 CES 69449 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

 

 

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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

 

 

HB5169- 33 -LRB103 39295 CES 69449 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

 

 

HB5169- 34 -LRB103 39295 CES 69449 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

 

 

HB5169- 35 -LRB103 39295 CES 69449 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

 

 

HB5169- 36 -LRB103 39295 CES 69449 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%

 

 

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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

 

 

HB5169- 38 -LRB103 39295 CES 69449 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

 

 

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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

 

 

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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

 

 

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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

 

 

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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 retires begins
12        retiring eligible new utility-scale utility scale
13        renewable energy credits for self-compliance. The
14        self-direct credit amount for each renewable energy
15        credit supplied shall be determined annually and is
16        equal to the volumetric charge collected pursuant to
17        Section 16-108 of the Public Utilities Act as
18        calculated under estimated portion of the cost
19        authorized by subparagraph (E) of paragraph (1) of
20        this subsection (c) to support that supported the
21        annual procurement of utility-scale renewable energy
22        credits in the prior delivery year using a methodology
23        described in the long-term renewable resources
24        procurement plan, expressed on a per kilowatthour
25        basis, and does not include (i) costs associated with
26        any contracts entered into before the delivery year in

 

 

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1        which the customer files the initial compliance report
2        to be eligible for participation in the self-direct
3        program, and (ii) costs associated with procuring
4        renewable energy credits through existing and future
5        contracts through the Adjustable Block Program,
6        subsection (c-5) of this Section 1-75, and the Solar
7        for All Program. The Agency shall assist the
8        Commission in determining the current and future
9        costs. The Agency must determine the self-direct
10        credit amount for new and existing eligible
11        self-direct customers and submit this to the
12        Commission in an annual compliance filing. The
13        Commission must approve the self-direct credit amount
14        by June 1, 2023 and June 1 of each delivery year
15        thereafter. The approved self-direct credit amount
16        shall be multiplied by each renewable energy credit
17        procured by participating self-direct customers for up
18        to 100% of the self-direct customer's annual
19        consumption to form the self-direct customer's utility
20        bill credit amount. The self-direct customer's utility
21        bill credit amount shall consist of a credit towards
22        the utility-scale renewable energy portion of the
23        volumetric charge and shall not include a credit
24        towards the portion of the volumetric charge
25        associated with procuring renewable energy credits
26        through existing and future contracts through the

 

 

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1        Adjustable Block Program, subsection (c-5) of this
2        Section 1-75, and the Solar for All Program.
3            (5) Customers described in this subparagraph (R)
4        shall apply, on a form developed by the Agency, to the
5        Agency to be designated as a self-direct eligible
6        customer. Once the Agency determines that a
7        self-direct customer is eligible for participation in
8        the program, the self-direct customer will remain
9        eligible until the end of the term of the contract.
10        Thereafter, application may be made not less than 12
11        months before the filing date of the long-term
12        renewable resources procurement plan described in this
13        Act. At a minimum, such application shall contain the
14        following:
15                (i) the customer's certification that, at the
16            time of the customer's application, the customer
17            qualifies to be a self-direct eligible customer,
18            including documents demonstrating that
19            qualification;
20                (ii) the customer's certification that the
21            customer has entered into or will enter into by
22            the beginning of the applicable procurement year,
23            one or more bilateral contracts for new wind
24            projects or new photovoltaic projects, including
25            supporting documentation;
26                (iii) certification that the contract or

 

 

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1            contracts for new renewable energy resources are
2            long-term contracts with term lengths of at least
3            10 years, including supporting documentation;
4                (iv) certification of the quantities of
5            renewable energy credits that the customer will
6            purchase each year under such contract or
7            contracts, including supporting documentation;
8                (v) proof that the contract is sufficient to
9            produce renewable energy credits to be equivalent
10            in volume to at least 40% of the large energy
11            customer's usage from the previous delivery year,
12            measured to the nearest megawatt-hour; and
13                (vi) certification that the customer intends
14            to maintain the contract for the duration of the
15            length of the contract.
16            (6) If a customer receives the self-direct credit
17        but fails to properly procure and retire renewable
18        energy credits as required under this subparagraph
19        (R), the Commission, on petition from the Agency and
20        after notice and hearing, may direct such customer's
21        utility to recover the cost of the wrongfully received
22        self-direct credits plus interest through an adder to
23        charges assessed pursuant to Section 16-108 of the
24        Public Utilities Act. Self-direct customers who
25        knowingly fail to properly procure and retire
26        renewable energy credits and do not notify the Agency

 

 

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1        are ineligible for continued participation in the
2        self-direct renewable portfolio standard compliance
3        program.
4        (2) (Blank).
5        (3) (Blank).
6        (4) The electric utility shall retire all renewable
7    energy credits used to comply with the standard.
8        (5) Beginning with the 2010 delivery year and ending
9    June 1, 2017, an electric utility subject to this
10    subsection (c) shall apply the lesser of the maximum
11    alternative compliance payment rate or the most recent
12    estimated alternative compliance payment rate for its
13    service territory for the corresponding compliance period,
14    established pursuant to subsection (d) of Section 16-115D
15    of the Public Utilities Act to its retail customers that
16    take service pursuant to the electric utility's hourly
17    pricing tariff or tariffs. The electric utility shall
18    retain all amounts collected as a result of the
19    application of the alternative compliance payment rate or
20    rates to such customers, and, beginning in 2011, the
21    utility shall include in the information provided under
22    item (1) of subsection (d) of Section 16-111.5 of the
23    Public Utilities Act the amounts collected under the
24    alternative compliance payment rate or rates for the prior
25    year ending May 31. Notwithstanding any limitation on the
26    procurement of renewable energy resources imposed by item

 

 

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1    (2) of this subsection (c), the Agency shall increase its
2    spending on the purchase of renewable energy resources to
3    be procured by the electric utility for the next plan year
4    by an amount equal to the amounts collected by the utility
5    under the alternative compliance payment rate or rates in
6    the prior year ending May 31.
7        (6) The electric utility shall be entitled to recover
8    all of its costs associated with the procurement of
9    renewable energy credits under plans approved under this
10    Section and Section 16-111.5 of the Public Utilities Act.
11    These costs shall include associated reasonable expenses
12    for implementing the procurement programs, including, but
13    not limited to, the costs of administering and evaluating
14    the Adjustable Block program, through an automatic
15    adjustment clause tariff in accordance with subsection (k)
16    of Section 16-108 of the Public Utilities Act.
17        (7) Renewable energy credits procured from new
18    photovoltaic projects or new distributed renewable energy
19    generation devices under this Section after June 1, 2017
20    (the effective date of Public Act 99-906) must be procured
21    from devices installed by a qualified person in compliance
22    with the requirements of Section 16-128A of the Public
23    Utilities Act and any rules or regulations adopted
24    thereunder.
25        In meeting the renewable energy requirements of this
26    subsection (c), to the extent feasible and consistent with

 

 

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1    State and federal law, the renewable energy credit
2    procurements, Adjustable Block solar program, and
3    community renewable generation program shall provide
4    employment opportunities for all segments of the
5    population and workforce, including minority-owned and
6    female-owned business enterprises, and shall not,
7    consistent with State and federal law, discriminate based
8    on race or socioeconomic status.
9    (c-5) Procurement of renewable energy credits from new
10renewable energy facilities installed at or adjacent to the
11sites of electric generating facilities that burn or burned
12coal as their primary fuel source.
13        (1) In addition to the procurement of renewable energy
14    credits pursuant to long-term renewable resources
15    procurement plans in accordance with subsection (c) of
16    this Section and Section 16-111.5 of the Public Utilities
17    Act, the Agency shall conduct procurement events in
18    accordance with this subsection (c-5) for the procurement
19    by electric utilities that served more than 300,000 retail
20    customers in this State as of January 1, 2019 of renewable
21    energy credits from new renewable energy facilities to be
22    installed at or adjacent to the sites of electric
23    generating facilities that, as of January 1, 2016, burned
24    coal as their primary fuel source and meet the other
25    criteria specified in this subsection (c-5). For purposes
26    of this subsection (c-5), "new renewable energy facility"

 

 

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1    means a new utility-scale solar project as defined in this
2    Section 1-75. The renewable energy credits procured
3    pursuant to this subsection (c-5) may be included or
4    counted for purposes of compliance with the amounts of
5    renewable energy credits required to be procured pursuant
6    to subsection (c) of this Section to the extent that there
7    are otherwise shortfalls in compliance with such
8    requirements. The procurement of renewable energy credits
9    by electric utilities pursuant to this subsection (c-5)
10    shall be funded solely by revenues collected from the Coal
11    to Solar and Energy Storage Initiative Charge provided for
12    in this subsection (c-5) and subsection (i-5) of Section
13    16-108 of the Public Utilities Act, shall not be funded by
14    revenues collected through any of the other funding
15    mechanisms provided for in subsection (c) of this Section,
16    and shall not be subject to the limitation imposed by
17    subsection (c) on charges to retail customers for costs to
18    procure renewable energy resources pursuant to subsection
19    (c), and shall not be subject to any other requirements or
20    limitations of subsection (c).
21        (2) The Agency shall conduct 2 procurement events to
22    select owners of electric generating facilities meeting
23    the eligibility criteria specified in this subsection
24    (c-5) to enter into long-term contracts to sell renewable
25    energy credits to electric utilities serving more than
26    300,000 retail customers in this State as of January 1,

 

 

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1    2019. The first procurement event shall be conducted no
2    later than March 31, 2022, unless the Agency elects to
3    delay it, until no later than May 1, 2022, due to its
4    overall volume of work, and shall be to select owners of
5    electric generating facilities located in this State and
6    south of federal Interstate Highway 80 that meet the
7    eligibility criteria specified in this subsection (c-5).
8    The second procurement event shall be conducted no sooner
9    than September 30, 2022 and no later than October 31, 2022
10    and shall be to select owners of electric generating
11    facilities located anywhere in this State that meet the
12    eligibility criteria specified in this subsection (c-5).
13    The Agency shall establish and announce a time period,
14    which shall begin no later than 30 days prior to the
15    scheduled date for the procurement event, during which
16    applicants may submit applications to be selected as
17    suppliers of renewable energy credits pursuant to this
18    subsection (c-5). The eligibility criteria for selection
19    as a supplier of renewable energy credits pursuant to this
20    subsection (c-5) shall be as follows:
21            (A) The applicant owns an electric generating
22        facility located in this State that: (i) as of January
23        1, 2016, burned coal as its primary fuel to generate
24        electricity; and (ii) has, or had prior to retirement,
25        an electric generating capacity of at least 150
26        megawatts. The electric generating facility can be

 

 

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1        either: (i) retired as of the date of the procurement
2        event; or (ii) still operating as of the date of the
3        procurement event.
4            (B) The applicant is not (i) an electric
5        cooperative as defined in Section 3-119 of the Public
6        Utilities Act, or (ii) an entity described in
7        subsection (b)(1) of Section 3-105 of the Public
8        Utilities Act, or an association or consortium of or
9        an entity owned by entities described in (i) or (ii);
10        and the coal-fueled electric generating facility was
11        at one time owned, in whole or in part, by a public
12        utility as defined in Section 3-105 of the Public
13        Utilities Act.
14            (C) If participating in the first procurement
15        event, the applicant proposes and commits to construct
16        and operate, at the site, and if necessary for
17        sufficient space on property adjacent to the existing
18        property, at which the electric generating facility
19        identified in paragraph (A) is located: (i) a new
20        renewable energy facility of at least 20 megawatts but
21        no more than 100 megawatts of electric generating
22        capacity, and (ii) an energy storage facility having a
23        storage capacity equal to at least 2 megawatts and at
24        most 10 megawatts. If participating in the second
25        procurement event, the applicant proposes and commits
26        to construct and operate, at the site, and if

 

 

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1        necessary for sufficient space on property adjacent to
2        the existing property, at which the electric
3        generating facility identified in paragraph (A) is
4        located: (i) a new renewable energy facility of at
5        least 5 megawatts but no more than 20 megawatts of
6        electric generating capacity, and (ii) an energy
7        storage facility having a storage capacity equal to at
8        least 0.5 megawatts and at most one megawatt.
9            (D) The applicant agrees that the new renewable
10        energy facility and the energy storage facility will
11        be constructed or installed by a qualified entity or
12        entities in compliance with the requirements of
13        subsection (g) of Section 16-128A of the Public
14        Utilities Act and any rules adopted thereunder.
15            (E) The applicant agrees that personnel operating
16        the new renewable energy facility and the energy
17        storage facility will have the requisite skills,
18        knowledge, training, experience, and competence, which
19        may be demonstrated by completion or current
20        participation and ultimate completion by employees of
21        an accredited or otherwise recognized apprenticeship
22        program for the employee's particular craft, trade, or
23        skill, including through training and education
24        courses and opportunities offered by the owner to
25        employees of the coal-fueled electric generating
26        facility or by previous employment experience

 

 

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1        performing the employee's particular work skill or
2        function.
3            (F) The applicant commits that not less than the
4        prevailing wage, as determined pursuant to the
5        Prevailing Wage Act, will be paid to the applicant's
6        employees engaged in construction activities
7        associated with the new renewable energy facility and
8        the new energy storage facility and to the employees
9        of applicant's contractors engaged in construction
10        activities associated with the new renewable energy
11        facility and the new energy storage facility, and
12        that, on or before the commercial operation date of
13        the new renewable energy facility, the applicant shall
14        file a report with the Agency certifying that the
15        requirements of this subparagraph (F) have been met.
16            (G) The applicant commits that if selected, it
17        will negotiate a project labor agreement for the
18        construction of the new renewable energy facility and
19        associated energy storage facility that includes
20        provisions requiring the parties to the agreement to
21        work together to establish diversity threshold
22        requirements and to ensure best efforts to meet
23        diversity targets, improve diversity at the applicable
24        job site, create diverse apprenticeship opportunities,
25        and create opportunities to employ former coal-fired
26        power plant workers.

 

 

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1            (H) The applicant commits to enter into a contract
2        or contracts for the applicable duration to provide
3        specified numbers of renewable energy credits each
4        year from the new renewable energy facility to
5        electric utilities that served more than 300,000
6        retail customers in this State as of January 1, 2019,
7        at a price of $30 per renewable energy credit. The
8        price per renewable energy credit shall be fixed at
9        $30 for the applicable duration and the renewable
10        energy credits shall not be indexed renewable energy
11        credits as provided for in item (v) of subparagraph
12        (G) of paragraph (1) of subsection (c) of Section 1-75
13        of this Act. The applicable duration of each contract
14        shall be 20 years, unless the applicant is physically
15        interconnected to the PJM Interconnection, LLC
16        transmission grid and had a generating capacity of at
17        least 1,200 megawatts as of January 1, 2021, in which
18        case the applicable duration of the contract shall be
19        15 years.
20            (I) The applicant's application is certified by an
21        officer of the applicant and by an officer of the
22        applicant's ultimate parent company, if any.
23        (3) An applicant may submit applications to contract
24    to supply renewable energy credits from more than one new
25    renewable energy facility to be constructed at or adjacent
26    to one or more qualifying electric generating facilities

 

 

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1    owned by the applicant. The Agency may select new
2    renewable energy facilities to be located at or adjacent
3    to the sites of more than one qualifying electric
4    generation facility owned by an applicant to contract with
5    electric utilities to supply renewable energy credits from
6    such facilities.
7        (4) The Agency shall assess fees to each applicant to
8    recover the Agency's costs incurred in receiving and
9    evaluating applications, conducting the procurement event,
10    developing contracts for sale, delivery and purchase of
11    renewable energy credits, and monitoring the
12    administration of such contracts, as provided for in this
13    subsection (c-5), including fees paid to a procurement
14    administrator retained by the Agency for one or more of
15    these purposes.
16        (5) The Agency shall select the applicants and the new
17    renewable energy facilities to contract with electric
18    utilities to supply renewable energy credits in accordance
19    with this subsection (c-5). In the first procurement
20    event, the Agency shall select applicants and new
21    renewable energy facilities to supply renewable energy
22    credits, at a price of $30 per renewable energy credit,
23    aggregating to no less than 400,000 renewable energy
24    credits per year for the applicable duration, assuming
25    sufficient qualifying applications to supply, in the
26    aggregate, at least that amount of renewable energy

 

 

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1    credits per year; and not more than 580,000 renewable
2    energy credits per year for the applicable duration. In
3    the second procurement event, the Agency shall select
4    applicants and new renewable energy facilities to supply
5    renewable energy credits, at a price of $30 per renewable
6    energy credit, aggregating to no more than 625,000
7    renewable energy credits per year less the amount of
8    renewable energy credits each year contracted for as a
9    result of the first procurement event, for the applicable
10    durations. The number of renewable energy credits to be
11    procured as specified in this paragraph (5) shall not be
12    reduced based on renewable energy credits procured in the
13    self-direct renewable energy credit compliance program
14    established pursuant to subparagraph (R) of paragraph (1)
15    of subsection (c) of Section 1-75.
16        (6) The obligation to purchase renewable energy
17    credits from the applicants and their new renewable energy
18    facilities selected by the Agency shall be allocated to
19    the electric utilities based on their respective
20    percentages of kilowatthours delivered to delivery
21    services customers to the aggregate kilowatthour
22    deliveries by the electric utilities to delivery services
23    customers for the year ended December 31, 2021. In order
24    to achieve these allocation percentages between or among
25    the electric utilities, the Agency shall require each
26    applicant that is selected in the procurement event to

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        this State or in having any such funds utilized for any
2        purpose other than the express purposes set forth in
3        this paragraph (10).
4            (C) The Department shall utilize up to
5        $280,500,000 in the Coal to Solar and Energy Storage
6        Initiative Fund for grants, assuming sufficient
7        qualifying applicants, to support installation of
8        energy storage facilities at the sites of up to 3
9        qualifying electric generating facilities located in
10        the Midcontinent Independent System Operator, Inc.,
11        region in Illinois and the sites of up to 2 qualifying
12        electric generating facilities located in the PJM
13        Interconnection, LLC region in Illinois that meet the
14        criteria set forth in this subparagraph (C). The
15        criteria for receipt of a grant pursuant to this
16        subparagraph (C) are as follows:
17                (1) the electric generating facility at the
18            site has, or had prior to retirement, an electric
19            generating capacity of at least 150 megawatts;
20                (2) the electric generating facility burns (or
21            burned prior to retirement) coal as its primary
22            source of fuel;
23                (3) if the electric generating facility is
24            retired, it was retired subsequent to January 1,
25            2016;
26                (4) the owner of the electric generating

 

 

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1            facility has not been selected by the Agency
2            pursuant to this subsection (c-5) of this Section
3            to enter into a contract to sell renewable energy
4            credits to one or more electric utilities from a
5            new renewable energy facility located or to be
6            located at or adjacent to the site at which the
7            electric generating facility is located;
8                (5) the electric generating facility located
9            at the site was at one time owned, in whole or in
10            part, by a public utility as defined in Section
11            3-105 of the Public Utilities Act;
12                (6) the electric generating facility at the
13            site is not owned by (i) an electric cooperative
14            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
18            or an entity owned by entities described in items
19            (i) or (ii);
20                (7) the proposed energy storage facility at
21            the site will have energy storage capacity of at
22            least 37 megawatts;
23                (8) the owner commits to place the energy
24            storage facility into commercial operation on
25            either June 1, 2023, June 1, 2024, or June 1, 2025,
26            with such date subject to adjustment as needed due

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1outcomes. Further, it is the purpose of this subsection to
2ensure that this equity accountability system is successful in
3advancing equity across Illinois by providing access to the
4clean energy economy for businesses and workers from
5communities that have been historically excluded from economic
6opportunities in the energy sector, have been subject to
7disproportionate levels of pollution, and have
8disproportionately experienced negative public health
9outcomes.
10        (1) Minimum equity standards. The Agency shall create
11    programs with the purpose of increasing access to and
12    development of equity eligible contractors, who are prime
13    contractors and subcontractors, across all of the programs
14    it manages. All applications for renewable energy credit
15    procurements shall comply with specific minimum equity
16    commitments. Starting in the delivery year immediately
17    following the next long-term renewable resources
18    procurement plan, at least 10% of the project workforce
19    for each entity participating in a procurement program
20    outlined in this subsection (c-10) must be done by equity
21    eligible persons or equity eligible contractors. The
22    Agency shall increase the minimum percentage each delivery
23    year thereafter by increments that ensure a statewide
24    average of 30% of the project workforce for each entity
25    participating in a procurement program is done by equity
26    eligible persons or equity eligible contractors by 2030.

 

 

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1    The Agency shall propose a schedule of percentage
2    increases to the minimum equity standards in its draft
3    revised renewable energy resources procurement plan
4    submitted to the Commission for approval pursuant to
5    paragraph (5) of subsection (b) of Section 16-111.5 of the
6    Public Utilities Act. In determining these annual
7    increases, the Agency shall have the discretion to
8    establish different minimum equity standards for different
9    types of procurements and different regions of the State
10    if the Agency finds that doing so will further the
11    purposes of this subsection (c-10). The proposed schedule
12    of annual increases shall be revisited and updated on an
13    annual basis. Revisions shall be developed with
14    stakeholder input, including from equity eligible persons,
15    equity eligible contractors, clean energy industry
16    representatives, and community-based organizations that
17    work with such persons and contractors.
18            (A) At the start of each delivery year, the Agency
19        shall require a compliance plan from each entity
20        participating in a procurement program of subsection
21        (c) of this Section that demonstrates how they will
22        achieve compliance with the minimum equity standard
23        percentage for work completed in that delivery year.
24        If an entity applies for its approved vendor or
25        designee status between delivery years, the Agency
26        shall require a compliance plan at the time of

 

 

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

 

 

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1        procurement programs upon an approved vendor or
2        designee demonstrating compliance.
3            (E) The Agency shall pursue efficiencies achieved
4        by combining with other approved vendor or designee
5        reporting.
6        (2) Equity accountability system within the Adjustable
7    Block program. The equity category described in item (vi)
8    of subparagraph (K) of subsection (c) is only available to
9    applicants that are equity eligible contractors.
10        (3) Equity accountability system within competitive
11    procurements. Through its long-term renewable resources
12    procurement plan, the Agency shall develop requirements
13    for ensuring that competitive procurement processes,
14    including utility-scale solar, utility-scale wind, and
15    brownfield site photovoltaic projects, advance the equity
16    goals of this subsection (c-10). Subject to Commission
17    approval, the Agency shall develop bid application
18    requirements and a bid evaluation methodology for ensuring
19    that utilization of equity eligible contractors, whether
20    as bidders or as participants on project development, is
21    optimized, including requiring that winning or successful
22    applicants for utility-scale projects are or will partner
23    with equity eligible contractors and giving preference to
24    bids through which a higher portion of contract value
25    flows to equity eligible contractors. To the extent
26    practicable, entities participating in competitive

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (4) Publication of collected information. The Agency
2    shall publish, at least annually, information on the
3    demographics of program participants on an aggregate
4    basis.
5        (5) Nothing in this subsection shall be interpreted to
6    limit the authority of the Agency, or other agency or
7    department of the State, to require or collect demographic
8    information from applicants of other State programs.
9    (c-25) Energy Workforce Equity Database.
10        (1) The Agency, in consultation with the Department of
11    Commerce and Economic Opportunity, shall create an Energy
12    Workforce Equity Database, and may contract with a third
13    party to do so ("database program administrator"). If the
14    Department decides to contract with a third party, that
15    third party shall be exempt from the requirements of
16    Section 20-10 of the Illinois Procurement Code. The Energy
17    Workforce Equity Database shall be a searchable database
18    of suppliers, vendors, and subcontractors for clean energy
19    industries that is:
20            (A) publicly accessible;
21            (B) easy for people to find and use;
22            (C) organized by company specialty or field;
23            (D) region-specific; and
24            (E) populated with information including, but not
25        limited to, contacts for suppliers, vendors, or
26        subcontractors who are minority and women-owned

 

 

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

 

 

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1        Justice Grant Program, the Clean Energy Jobs and
2        Justice Fund, and other sources of capital.
3        (3) The Agency shall ensure the database is regularly
4    updated to ensure information is current and shall
5    coordinate with the Department of Commerce and Economic
6    Opportunity to ensure that it includes information on
7    individuals and entities that are or have participated in
8    the Clean Jobs Workforce Network Program, Clean Energy
9    Contractor Incubator Program, Returning Residents Clean
10    Jobs Training Program, or Clean Energy Primes Contractor
11    Accelerator Program.
12    (c-30) Enforcement of minimum equity standards. All
13entities seeking renewable energy credits must submit an
14annual report to demonstrate compliance with each of the
15equity commitments required under subsection (c-10). If the
16Agency concludes the entity has not met or maintained its
17minimum equity standards required under the applicable
18subparagraphs under subsection (c-10), the Agency shall deny
19the entity's ability to participate in procurement programs in
20subsection (c), including by withholding approved vendor or
21designee status. The Agency may require the entity to enter
22into a corrective action plan. An entity that is not
23recertified for failing to meet required equity actions in
24subparagraph (c-10) may reapply once they have a corrective
25action plan and achieve compliance with the minimum equity
26standards.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    clean coal facility in Illinois (the "initial clean coal
2    facility") that will have a nameplate capacity of at least
3    500 MW when commercial operation commences, that has a
4    final Clean Air Act permit on June 1, 2009 (the effective
5    date of Public Act 95-1027), and that will meet the
6    definition of clean coal facility in Section 1-10 of this
7    Act when commercial operation commences. The sourcing
8    agreements with this initial clean coal facility shall be
9    subject to both approval of the initial clean coal
10    facility by the General Assembly and satisfaction of the
11    requirements of paragraph (4) of this subsection (d) and
12    shall be executed within 90 days after any such approval
13    by the General Assembly. The Agency and the Commission
14    shall have authority to inspect all books and records
15    associated with the initial clean coal facility during the
16    term of such a sourcing agreement. A utility's sourcing
17    agreement for electricity produced by the initial clean
18    coal facility shall include:
19            (A) a formula contractual price (the "contract
20        price") approved pursuant to paragraph (4) of this
21        subsection (d), which shall:
22                (i) be determined using a cost of service
23            methodology employing either a level or deferred
24            capital recovery component, based on a capital
25            structure consisting of 45% equity and 55% debt,
26            and a return on equity as may be approved by the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1                    the Base Residual Auction, or its
2                    successor, price for the ComEd zone as
3                    determined by PJM Interconnection LLC,
4                    divided by 24 hours per day, and (2) 50%
5                    multiplied by the resource auction price
6                    determined in the resource auction
7                    administered by the Midcontinent
8                    Independent System Operator, Inc., in
9                    which the largest percentage of load
10                    cleared for Local Resource Zone 4, divided
11                    by 24 hours per day, and where such price
12                    is determined by the Midcontinent
13                    Independent System Operator, Inc.
14            For purposes of this subsection (d-5):
15                "Rest of the RTO" and "ComEd Zone" shall have
16            the meaning ascribed to them by PJM
17            Interconnection, LLC.
18                "RTO" means regional transmission
19            organization.
20            (C) No later than 45 days after June 1, 2017 (the
21        effective date of Public Act 99-906), the Agency shall
22        publish its proposed zero emission standard
23        procurement plan. The plan shall be consistent with
24        the provisions of this paragraph (1) and shall provide
25        that winning bids shall be selected based on public
26        interest criteria that include, but are not limited

 

 

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1        to, minimizing carbon dioxide emissions that result
2        from electricity consumed in Illinois and minimizing
3        sulfur dioxide, nitrogen oxide, and particulate matter
4        emissions that adversely affect the citizens of this
5        State. In particular, the selection of winning bids
6        shall take into account the incremental environmental
7        benefits resulting from the procurement, such as any
8        existing environmental benefits that are preserved by
9        the procurements held under Public Act 99-906 and
10        would cease to exist if the procurements were not
11        held, including the preservation of zero emission
12        facilities. The plan shall also describe in detail how
13        each public interest factor shall be considered and
14        weighted in the bid selection process to ensure that
15        the public interest criteria are applied to the
16        procurement and given full effect.
17            For purposes of developing the plan, the Agency
18        shall consider any reports issued by a State agency,
19        board, or commission under House Resolution 1146 of
20        the 98th General Assembly and paragraph (4) of
21        subsection (d) of this Section, as well as publicly
22        available analyses and studies performed by or for
23        regional transmission organizations that serve the
24        State and their independent market monitors.
25            Upon publishing of the zero emission standard
26        procurement plan, copies of the plan shall be posted

 

 

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

 

 

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1            (C) of this paragraph (1) of minimizing carbon
2            dioxide emissions that result from electricity
3            consumed in Illinois and minimizing sulfur
4            dioxide, nitrogen oxide, and particulate matter
5            emissions that adversely affect the citizens of
6            this State;
7                (ii) specifically address how the selection of
8            winning bids takes into account the incremental
9            environmental benefits resulting from the
10            procurement, including any existing environmental
11            benefits that are preserved by the procurements
12            held under Public Act 99-906 and would have ceased
13            to exist if the procurements had not been held,
14            such as the preservation of zero emission
15            facilities;
16                (iii) quantify the environmental benefit of
17            preserving the resources identified in item (ii)
18            of this subparagraph (C-5), including the
19            following:
20                    (aa) the value of avoided greenhouse gas
21                emissions measured as the product of the zero
22                emission facilities' output over the contract
23                term multiplied by the U.S. Environmental
24                Protection Agency eGrid subregion carbon
25                dioxide emission rate and the U.S. Interagency
26                Working Group on Social Cost of Carbon's price

 

 

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1                in the August 2016 Technical Update using a 3%
2                discount rate, adjusted for inflation for each
3                delivery year; and
4                    (bb) the costs of replacement with other
5                zero carbon dioxide resources, including wind
6                and photovoltaic, based upon the simple
7                average of the following:
8                        (I) the price, or if there is more
9                    than one price, the average of the prices,
10                    paid for renewable energy credits from new
11                    utility-scale wind projects in the
12                    procurement events specified in item (i)
13                    of subparagraph (G) of paragraph (1) of
14                    subsection (c) of this Section; and
15                        (II) the price, or if there is more
16                    than one price, the average of the prices,
17                    paid for renewable energy credits from new
18                    utility-scale solar projects and
19                    brownfield site photovoltaic projects in
20                    the procurement events specified in item
21                    (ii) of subparagraph (G) of paragraph (1)
22                    of subsection (c) of this Section and,
23                    after January 1, 2015, renewable energy
24                    credits from photovoltaic distributed
25                    generation projects in procurement events
26                    held under subsection (c) of this Section.

 

 

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

 

 

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1        payment calculations no later than May 25, 2017 and
2        every May 25 thereafter.
3            (E) Notwithstanding the requirements of this
4        subsection (d-5), the contracts executed under this
5        subsection (d-5) shall provide that the zero emission
6        facility may, as applicable, suspend or terminate
7        performance under the contracts in the following
8        instances:
9                (i) A zero emission facility shall be excused
10            from its performance under the contract for any
11            cause beyond the control of the resource,
12            including, but not restricted to, acts of God,
13            flood, drought, earthquake, storm, fire,
14            lightning, epidemic, war, riot, civil disturbance
15            or disobedience, labor dispute, labor or material
16            shortage, sabotage, acts of public enemy,
17            explosions, orders, regulations or restrictions
18            imposed by governmental, military, or lawfully
19            established civilian authorities, which, in any of
20            the foregoing cases, by exercise of commercially
21            reasonable efforts the zero emission facility
22            could not reasonably have been expected to avoid,
23            and which, by the exercise of commercially
24            reasonable efforts, it has been unable to
25            overcome. In such event, the zero emission
26            facility shall be excused from performance for the

 

 

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1            duration of the event, including, but not limited
2            to, delivery of zero emission credits, and no
3            payment shall be due to the zero emission facility
4            during the duration of the event.
5                (ii) A zero emission facility shall be
6            permitted to terminate the contract if legislation
7            is enacted into law by the General Assembly that
8            imposes or authorizes a new tax, special
9            assessment, or fee on the generation of
10            electricity, the ownership or leasehold of a
11            generating unit, or the privilege or occupation of
12            such generation, ownership, or leasehold of
13            generation units by a zero emission facility.
14            However, the provisions of this item (ii) do not
15            apply to any generally applicable tax, special
16            assessment or fee, or requirements imposed by
17            federal law.
18                (iii) A zero emission facility shall be
19            permitted to terminate the contract in the event
20            that the resource requires capital expenditures in
21            excess of $40,000,000 that were neither known nor
22            reasonably foreseeable at the time it executed the
23            contract and that a prudent owner or operator of
24            such resource would not undertake.
25                (iv) A zero emission facility shall be
26            permitted to terminate the contract in the event

 

 

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1            the Nuclear Regulatory Commission terminates the
2            resource's license.
3            (F) If the zero emission facility elects to
4        terminate a contract under subparagraph (E) of this
5        paragraph (1), then the Commission shall reopen the
6        docket in which the Commission approved the zero
7        emission standard procurement plan under subparagraph
8        (C) of this paragraph (1) and, after notice and
9        hearing, enter an order acknowledging the contract
10        termination election if such termination is consistent
11        with the provisions of this subsection (d-5).
12        (2) For purposes of this subsection (d-5), the amount
13    paid per kilowatthour means the total amount paid for
14    electric service expressed on a per kilowatthour basis.
15    For purposes of this subsection (d-5), the total amount
16    paid for electric service includes, without limitation,
17    amounts paid for supply, transmission, distribution,
18    surcharges, and add-on taxes.
19        Notwithstanding the requirements of this subsection
20    (d-5), the contracts executed under this subsection (d-5)
21    shall provide that the total of zero emission credits
22    procured under a procurement plan shall be subject to the
23    limitations of this paragraph (2). For each delivery year,
24    the contractual volume receiving payments in such year
25    shall be reduced for all retail customers based on the
26    amount necessary to limit the net increase that delivery

 

 

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1    year to the costs of those credits included in the amounts
2    paid by eligible retail customers in connection with
3    electric service to no more than 1.65% of the amount paid
4    per kilowatthour by eligible retail customers during the
5    year ending May 31, 2009. The result of this computation
6    shall apply to and reduce the procurement for all retail
7    customers, and all those customers shall pay the same
8    single, uniform cents per kilowatthour charge under
9    subsection (k) of Section 16-108 of the Public Utilities
10    Act. To arrive at a maximum dollar amount of zero emission
11    credits to be paid for the particular delivery year, the
12    resulting per kilowatthour amount shall be applied to the
13    actual amount of kilowatthours of electricity delivered by
14    the electric utility in the delivery year immediately
15    prior to the procurement, to all retail customers in its
16    service territory. Unpaid contractual volume for any
17    delivery year shall be paid in any subsequent delivery
18    year in which such payments can be made without exceeding
19    the amount specified in this paragraph (2). The
20    calculations required by this paragraph (2) shall be made
21    only once for each procurement plan year. Once the
22    determination as to the amount of zero emission credits to
23    be paid is made based on the calculations set forth in this
24    paragraph (2), no subsequent rate impact determinations
25    shall be made and no adjustments to those contract amounts
26    shall be allowed. All costs incurred under those contracts

 

 

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1    and in implementing this subsection (d-5) shall be
2    recovered by the electric utility as provided in this
3    Section.
4        No later than June 30, 2019, the Commission shall
5    review the limitation on the amount of zero emission
6    credits procured under this subsection (d-5) and report to
7    the General Assembly its findings as to whether that
8    limitation unduly constrains the procurement of
9    cost-effective zero emission credits.
10        (3) Six years after the execution of a contract under
11    this subsection (d-5), the Agency shall determine whether
12    the actual zero emission credit payments received by the
13    supplier over the 6-year period exceed the Average ZEC
14    Payment. In addition, at the end of the term of a contract
15    executed under this subsection (d-5), or at the time, if
16    any, a zero emission facility's contract is terminated
17    under subparagraph (E) of paragraph (1) of this subsection
18    (d-5), then the Agency shall determine whether the actual
19    zero emission credit payments received by the supplier
20    over the term of the contract exceed the Average ZEC
21    Payment, after taking into account any amounts previously
22    credited back to the utility under this paragraph (3). If
23    the Agency determines that the actual zero emission credit
24    payments received by the supplier over the relevant period
25    exceed the Average ZEC Payment, then the supplier shall
26    credit the difference back to the utility. The amount of

 

 

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1    the credit shall be remitted to the applicable electric
2    utility no later than 120 days after the Agency's
3    determination, which the utility shall reflect as a credit
4    on its retail customer bills as soon as practicable;
5    however, the credit remitted to the utility shall not
6    exceed the total amount of payments received by the
7    facility under its contract.
8        For purposes of this Section, the Average ZEC Payment
9    shall be calculated by multiplying the quantity of zero
10    emission credits delivered under the contract times the
11    average contract price. The average contract price shall
12    be determined by subtracting the amount calculated under
13    subparagraph (B) of this paragraph (3) from the amount
14    calculated under subparagraph (A) of this paragraph (3),
15    as follows:
16            (A) The average of the Social Cost of Carbon, as
17        defined in subparagraph (B) of paragraph (1) of this
18        subsection (d-5), during the term of the contract.
19            (B) The average of the market price indices, as
20        defined in subparagraph (B) of paragraph (1) of this
21        subsection (d-5), during the term of the contract,
22        minus the baseline market price index, as defined in
23        subparagraph (B) of paragraph (1) of this subsection
24        (d-5).
25        If the subtraction yields a negative number, then the
26    Average ZEC Payment shall be zero.

 

 

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1        (4) Cost-effective zero emission credits procured from
2    zero emission facilities shall satisfy the applicable
3    definitions set forth in Section 1-10 of this Act.
4        (5) The electric utility shall retire all zero
5    emission credits used to comply with the requirements of
6    this subsection (d-5).
7        (6) Electric utilities shall be entitled to recover
8    all of the costs associated with the procurement of zero
9    emission credits through an automatic adjustment clause
10    tariff in accordance with subsection (k) and (m) of
11    Section 16-108 of the Public Utilities Act, and the
12    contracts executed under this subsection (d-5) shall
13    provide that the utilities' payment obligations under such
14    contracts shall be reduced if an adjustment is required
15    under subsection (m) of Section 16-108 of the Public
16    Utilities Act.
17        (7) This subsection (d-5) shall become inoperative on
18    January 1, 2028.
19    (d-10) Nuclear Plant Assistance; carbon mitigation
20credits.
21    (1) The General Assembly finds:
22        (A) The health, welfare, and prosperity of all
23    Illinois citizens require that the State of Illinois act
24    to avoid and not increase carbon emissions from electric
25    generation sources while continuing to ensure affordable,
26    stable, and reliable electricity to all citizens.

 

 

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1        (B) Absent immediate action by the State to preserve
2    existing carbon-free energy resources, those resources may
3    retire, and the electric generation needs of Illinois'
4    retail customers may be met instead by facilities that
5    emit significant amounts of carbon pollution and other
6    harmful air pollutants at a high social and economic cost
7    until Illinois is able to develop other forms of clean
8    energy.
9        (C) The General Assembly finds that nuclear power
10    generation is necessary for the State's transition to 100%
11    clean energy, and ensuring continued operation of nuclear
12    plants advances environmental and public health interests
13    through providing carbon-free electricity while reducing
14    the air pollution profile of the Illinois energy
15    generation fleet.
16        (D) The clean energy attributes of nuclear generation
17    facilities support the State in its efforts to achieve
18    100% clean energy.
19        (E) The State currently invests in various forms of
20    clean energy, including, but not limited to, renewable
21    energy, energy efficiency, and low-emission vehicles,
22    among others.
23        (F) The Environmental Protection Agency commissioned
24    an independent audit which provided a detailed assessment
25    of the financial condition of the Illinois nuclear fleet
26    to evaluate its financial viability and whether the

 

 

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1    environmental benefits of such resources were at risk. The
2    report identified the risk of losing the environmental
3    benefits of several specific nuclear units. The report
4    also identified that the LaSalle County Generating Station
5    will continue to operate through 2026 and therefore is not
6    eligible to participate in the carbon mitigation credit
7    program.
8        (G) Nuclear plants provide carbon-free energy, which
9    helps to avoid many health-related negative impacts for
10    Illinois residents.
11        (H) The procurement of carbon mitigation credits
12    representing the environmental benefits of carbon-free
13    generation will further the State's efforts at achieving
14    100% clean energy and decarbonizing the electricity sector
15    in a safe, reliable, and affordable manner. Further, the
16    procurement of carbon emission credits will enhance the
17    health and welfare of Illinois residents through decreased
18    reliance on more highly polluting generation.
19        (I) The General Assembly therefore finds it necessary
20    to establish carbon mitigation credits to ensure decreased
21    reliance on more carbon-intensive energy resources, for
22    transitioning to a fully decarbonized electricity sector,
23    and to help ensure health and welfare of the State's
24    residents.
25    (2) As used in this subsection:
26    "Baseline costs" means costs used to establish a customer

 

 

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1protection cap that have been evaluated through an independent
2audit of a carbon-free energy resource conducted by the
3Environmental Protection Agency that evaluated projected
4annual costs for operation and maintenance expenses; fully
5allocated overhead costs, which shall be allocated using the
6methodology developed by the Institute for Nuclear Power
7Operations; fuel expenditures; nonfuel capital expenditures;
8spent fuel expenditures; a return on working capital; the cost
9of operational and market risks that could be avoided by
10ceasing operation; and any other costs necessary for continued
11operations, provided that "necessary" means, for purposes of
12this definition, that the costs could reasonably be avoided
13only by ceasing operations of the carbon-free energy resource.
14    "Carbon mitigation credit" means a tradable credit that
15represents the carbon emission reduction attributes of one
16megawatt-hour of energy produced from a carbon-free energy
17resource.
18    "Carbon-free energy resource" means a generation facility
19that: (1) is fueled by nuclear power; and (2) is
20interconnected to PJM Interconnection, LLC.
21    (3) Procurement.
22        (A) Beginning with the delivery year commencing on
23    June 1, 2022, the Agency shall, for electric utilities
24    serving at least 3,000,000 retail customers in the State,
25    seek to procure contracts for no more than approximately
26    54,500,000 cost-effective carbon mitigation credits from

 

 

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1    carbon-free energy resources because such credits are
2    necessary to support current levels of carbon-free energy
3    generation and ensure the State meets its carbon dioxide
4    emissions reduction goals. The Agency shall not make a
5    partial award of a contract for carbon mitigation credits
6    covering a fractional amount of a carbon-free energy
7    resource's projected output.
8        (B) Each carbon-free energy resource that intends to
9    participate in a procurement shall be required to submit
10    to the Agency the following information for the resource
11    on or before the date established by the Agency:
12            (i) the in-service date and remaining useful life
13        of the carbon-free energy resource;
14            (ii) the amount of power generated annually for
15        each of the past 10 years, which shall be used to
16        determine the capability of each facility;
17            (iii) a commitment to be reflected in any contract
18        entered into pursuant to this subsection (d-10) to
19        continue operating the carbon-free energy resource at
20        a capacity factor of at least 88% annually on average
21        for the duration of the contract or contracts executed
22        under the procurement held under this subsection
23        (d-10), except in an instance described in
24        subparagraph (E) of paragraph (1) of subsection (d-5)
25        of this Section or made impracticable as a result of
26        compliance with law or regulation;

 

 

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1            (iv) financial need and the risk of loss of the
2        environmental benefits of such resource, which shall
3        include the following information:
4                (I) the carbon-free energy resource's cost
5            projections, expressed on a per megawatt-hour
6            basis, over the next 5 delivery years, which shall
7            include the following: operation and maintenance
8            expenses; fully allocated overhead costs, which
9            shall be allocated using the methodology developed
10            by the Institute for Nuclear Power Operations;
11            fuel expenditures; nonfuel capital expenditures;
12            spent fuel expenditures; a return on working
13            capital; the cost of operational and market risks
14            that could be avoided by ceasing operation; and
15            any other costs necessary for continued
16            operations, provided that "necessary" means, for
17            purposes of this subitem (I), that the costs could
18            reasonably be avoided only by ceasing operations
19            of the carbon-free energy resource; and
20                (II) the carbon-free energy resource's revenue
21            projections, including energy, capacity, ancillary
22            services, any other direct State support, known or
23            anticipated federal attribute credits, known or
24            anticipated tax credits, and any other direct
25            federal support.
26        The information described in this subparagraph (B) may

 

 

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1    be submitted on a confidential basis and shall be treated
2    and maintained by the Agency, the procurement
3    administrator, and the Commission as confidential and
4    proprietary and exempt from disclosure under subparagraphs
5    (a) and (g) of paragraph (1) of Section 7 of the Freedom of
6    Information Act. The Office of the Attorney General shall
7    have access to, and maintain the confidentiality of, such
8    information pursuant to Section 6.5 of the Attorney
9    General Act.
10        (C) The Agency shall solicit bids for the contracts
11    described in this subsection (d-10) from carbon-free
12    energy resources that have satisfied the requirements of
13    subparagraph (B) of this paragraph (3). The contracts
14    procured pursuant to a procurement event shall reflect,
15    and be subject to, the following terms, requirements, and
16    limitations:
17            (i) Contracts are for delivery of carbon
18        mitigation credits, and are not energy or capacity
19        sales contracts requiring physical delivery. Pursuant
20        to item (iii), contract payments shall fully deduct
21        the value of any monetized federal production tax
22        credits, credits issued pursuant to a federal clean
23        energy standard, and other federal credits if
24        applicable.
25            (ii) Contracts for carbon mitigation credits shall
26        commence with the delivery year beginning on June 1,

 

 

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1        2022 and shall be for a term of 5 delivery years
2        concluding on May 31, 2027.
3            (iii) The price per carbon mitigation credit to be
4        paid under a contract for a given delivery year shall
5        be equal to an accepted bid price less the sum of:
6                (I) one of the following energy price indices,
7            selected by the bidder at the time of the bid for
8            the term of the contract:
9                    (aa) the weighted-average hourly day-ahead
10                price for the applicable delivery year at the
11                busbar of all resources procured pursuant to
12                this subsection (d-10), weighted by actual
13                production from the resources; or
14                    (bb) the projected energy price for the
15                PJM Interconnection, LLC Northern Illinois Hub
16                for the applicable delivery year determined
17                according to subitem (aa) of item (iii) of
18                subparagraph (B) of paragraph (1) of
19                subsection (d-5).
20                (II) the Base Residual Auction Capacity Price
21            for the ComEd zone as determined by PJM
22            Interconnection, LLC, divided by 24 hours per day,
23            for the applicable delivery year for the first 3
24            delivery years, and then any subsequent delivery
25            years unless the PJM Interconnection, LLC applies
26            the Minimum Offer Price Rule to participating

 

 

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

 

 

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

 

 

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1            to $33.50 per megawatt-hour.
2                (V) For the delivery year beginning June 1,
3            2026, the baseline costs shall be an amount equal
4            to $34.50 per megawatt-hour.
5            An Environmental Protection Agency consultant
6        forecast, included in a report issued April 14, 2021,
7        projects that a carbon-free energy resource has the
8        opportunity to earn on average approximately $30.28
9        per megawatt-hour, for the sale of energy and capacity
10        during the time period between 2022 and 2027.
11        Therefore, the sale of carbon mitigation credits
12        provides the opportunity to receive an additional
13        amount per megawatt-hour in addition to the projected
14        prices for energy and capacity.
15            Although actual energy and capacity prices may
16        vary from year-to-year, the General Assembly finds
17        that this customer protection cap will help ensure
18        that the cost of carbon mitigation credits will be
19        less than its value, based upon the social cost of
20        carbon identified in the Technical Support Document
21        issued in February 2021 by the U.S. Interagency
22        Working Group on Social Cost of Greenhouse Gases and
23        the PJM Interconnection, LLC carbon dioxide marginal
24        emission rate for 2020, and that a carbon-free energy
25        resource receiving payment for carbon mitigation
26        credits receives no more than necessary to keep those

 

 

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1        units in operation.
2        (D) No later than 7 days after the effective date of
3    this amendatory Act of the 102nd General Assembly, the
4    Agency shall publish its proposed carbon mitigation credit
5    procurement plan. The Plan shall provide that winning bids
6    shall be selected by taking into consideration which
7    resources best match public interest criteria that
8    include, but are not limited to, minimizing carbon dioxide
9    emissions that result from electricity consumed in
10    Illinois and minimizing sulfur dioxide, nitrogen oxide,
11    and particulate matter emissions that adversely affect the
12    citizens of this State. The selection of winning bids
13    shall also take into account the incremental environmental
14    benefits resulting from the procurement or procurements,
15    such as any existing environmental benefits that are
16    preserved by a procurement held under this subsection
17    (d-10) and would cease to exist if the procurement were
18    not held, including the preservation of carbon-free energy
19    resources. For those bidders having the same public
20    interest criteria score, the relative ranking of such
21    bidders shall be determined by price. The Plan shall
22    describe in detail how each public interest factor shall
23    be considered and weighted in the bid selection process to
24    ensure that the public interest criteria are applied to
25    the procurement. The Plan shall, to the extent practical
26    and permissible by federal law, ensure that successful

 

 

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

 

 

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

 

 

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

 

 

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1    calculate the payments to be made under each contract in a
2    timely fashion.
3        (F-1) Costs incurred by the electric utility pursuant
4    to a contract authorized by this subsection (d-10) shall
5    be deemed prudently incurred and reasonable in amount, and
6    the electric utility shall be entitled to full cost
7    recovery pursuant to a tariff or tariffs filed with the
8    Commission.
9        (G) The counterparty electric utility shall retire all
10    carbon mitigation credits used to comply with the
11    requirements of this subsection (d-10).
12        (H) If a carbon-free energy resource is sold to
13    another owner, the rights, obligations, and commitments
14    under this subsection (d-10) shall continue to the
15    subsequent owner.
16        (I) This subsection (d-10) shall become inoperative on
17    January 1, 2028.
18    (e) The draft procurement plans are subject to public
19comment, as required by Section 16-111.5 of the Public
20Utilities Act.
21    (f) The Agency shall submit the final procurement plan to
22the Commission. The Agency shall revise a procurement plan if
23the Commission determines that it does not meet the standards
24set forth in Section 16-111.5 of the Public Utilities Act.
25    (g) The Agency shall assess fees to each affected utility
26to recover the costs incurred in preparation of the annual

 

 

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1procurement plan for the utility.
2    (h) The Agency shall assess fees to each bidder to recover
3the costs incurred in connection with a competitive
4procurement process.
5    (i) A renewable energy credit, carbon emission credit,
6zero emission credit, or carbon mitigation credit can only be
7used once to comply with a single portfolio or other standard
8as set forth in subsection (c), subsection (d), or subsection
9(d-5) of this Section, respectively. A renewable energy
10credit, carbon emission credit, zero emission credit, or
11carbon mitigation credit cannot be used to satisfy the
12requirements of more than one standard. If more than one type
13of credit is issued for the same megawatt hour of energy, only
14one credit can be used to satisfy the requirements of a single
15standard. After such use, the credit must be retired together
16with any other credits issued for the same megawatt hour of
17energy.
18(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
19103-580, eff. 12-8-23.)
 
20    Section 10. The Public Utilities Act is amended by
21changing Section 16-115D as follows:
 
22    (220 ILCS 5/16-115D)
23    Sec. 16-115D. Renewable portfolio standard for alternative
24retail electric suppliers and electric utilities operating

 

 

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1outside their service territories.
2    (a) An alternative retail electric supplier shall be
3responsible for procuring cost-effective renewable energy
4resources as required under item (5) of subsection (d) of
5Section 16-115 of this Act as outlined herein:
6        (1) The definition of renewable energy resources
7    contained in Section 1-10 of the Illinois Power Agency Act
8    applies to all renewable energy resources required to be
9    procured by alternative retail electric suppliers.
10        (2) Through May 31, 2017, the quantity of renewable
11    energy resources shall be measured as a percentage of the
12    actual amount of metered electricity (megawatt-hours)
13    delivered by the alternative retail electric supplier to
14    Illinois retail customers during the 12-month period June
15    1 through May 31, commencing June 1, 2009, and the
16    comparable 12-month period in each year thereafter except
17    as provided in item (6) of this subsection (a).
18        (3) Through May 31, 2017, the quantity of renewable
19    energy resources shall be in amounts at least equal to the
20    annual percentages set forth in item (1) of subsection (c)
21    of Section 1-75 of the Illinois Power Agency Act. At least
22    60% of the renewable energy resources procured pursuant to
23    items (1) and (3) of subsection (b) of this Section shall
24    come from wind generation and, starting June 1, 2015, at
25    least 6% of the renewable energy resources procured
26    pursuant to items (1) and (3) of subsection (b) of this

 

 

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1    Section shall come from solar photovoltaics. If, in any
2    given year, an alternative retail electric supplier does
3    not purchase at least these levels of renewable energy
4    resources, then the alternative retail electric supplier
5    shall make alternative compliance payments, as described
6    in subsection (d) of this Section.
7        (3.5) For the delivery year commencing June 1, 2017,
8    the quantity of renewable energy resources shall be at
9    least 13.0% of the uncovered amount of metered electricity
10    (megawatt-hours) delivered by the alternative retail
11    electric supplier to Illinois retail customers during the
12    delivery year, which uncovered amount shall equal 50% of
13    such metered electricity delivered by the alternative
14    retail electric supplier. For the delivery year commencing
15    June 1, 2018, the quantity of renewable energy resources
16    shall be at least 14.5% of the uncovered amount of metered
17    electricity (megawatt-hours) delivered by the alternative
18    retail electric supplier to Illinois retail customers
19    during the delivery year, which uncovered amount shall
20    equal 25% of such metered electricity delivered by the
21    alternative retail electric supplier. At least 32% of the
22    renewable energy resources procured by the alternative
23    retail electric supplier for its uncovered portion under
24    this paragraph (3.5) shall come from wind or photovoltaic
25    generation. The renewable energy resources procured under
26    this paragraph (3.5) shall not include any resources from

 

 

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1    a facility whose costs were being recovered through rates
2    regulated by any state or states on or after January 1,
3    2017.
4        (4) The quantity and source of renewable energy
5    resources shall be independently verified through the PJM
6    Environmental Information System Generation Attribute
7    Tracking System (PJM-GATS) or the Midwest Renewable Energy
8    Tracking System (M-RETS), which shall document the
9    location of generation, resource type, month, and year of
10    generation for all qualifying renewable energy resources
11    that an alternative retail electric supplier uses to
12    comply with this Section. No later than June 1, 2009, the
13    Illinois Power Agency shall provide PJM-GATS, M-RETS, and
14    alternative retail electric suppliers with all information
15    necessary to identify resources located in Illinois,
16    within states that adjoin Illinois or within portions of
17    the PJM and MISO footprint in the United States that
18    qualify under the definition of renewable energy resources
19    in Section 1-10 of the Illinois Power Agency Act for
20    compliance with this Section 16-115D. Alternative retail
21    electric suppliers shall not be subject to the
22    requirements in item (3) of subsection (c) of Section 1-75
23    of the Illinois Power Agency Act.
24        (5) All renewable energy credits used to comply with
25    this Section shall be permanently retired.
26        (6) The required procurement of renewable energy

 

 

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1    resources by an alternative retail electric supplier shall
2    apply to all metered electricity delivered to Illinois
3    retail customers by the alternative retail electric
4    supplier pursuant to contracts executed or extended after
5    March 15, 2009.
6    (b) Compliance obligations.
7        (1) Through May 31, 2017, an alternative retail
8    electric supplier shall comply with the renewable energy
9    portfolio standards by making an alternative compliance
10    payment, as described in subsection (d) of this Section,
11    to cover at least one-half of the alternative retail
12    electric supplier's compliance obligation for the period
13    prior to June 1, 2017.
14        (2) For the delivery years beginning June 1, 2017 and
15    June 1, 2018, an alternative retail electric supplier need
16    not make any alternative compliance payment to meet any
17    portion of its compliance obligation, as set forth in
18    paragraph (3.5) of subsection (a) of this Section.
19        (3) An alternative retail electric supplier shall use
20    any one or combination of the following means to cover the
21    remainder of the alternative retail electric supplier's
22    compliance obligation, as set forth in paragraphs (3) and
23    (3.5) of subsection (a) of this Section, not covered by an
24    alternative compliance payment made under paragraphs (1)
25    and (2) of this subsection (b) of this Section:
26            (A) Generating electricity using renewable energy

 

 

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1        resources identified pursuant to item (4) of
2        subsection (a) of this Section.
3            (B) Purchasing electricity generated using
4        renewable energy resources identified pursuant to item
5        (4) of subsection (a) of this Section through an
6        energy contract.
7            (C) Purchasing renewable energy credits from
8        renewable energy resources identified pursuant to item
9        (4) of subsection (a) of this Section.
10            (D) Making an alternative compliance payment as
11        described in subsection (d) of this Section.
12    (c) Use of renewable energy credits.
13        (1) Renewable energy credits that are not used by an
14    alternative retail electric supplier to comply with a
15    renewable portfolio standard in a compliance year may be
16    banked and carried forward up to 2 12-month compliance
17    periods after the compliance period in which the credit
18    was generated for the purpose of complying with a
19    renewable portfolio standard in those 2 subsequent
20    compliance periods. For the 2009-2010 and 2010-2011
21    compliance periods, an alternative retail electric
22    supplier may use renewable credits generated after
23    December 31, 2008 and before June 1, 2009 to comply with
24    this Section.
25        (2) An alternative retail electric supplier is
26    responsible for demonstrating that a renewable energy

 

 

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1    credit used to comply with a renewable portfolio standard
2    is derived from a renewable energy resource and that the
3    alternative retail electric supplier has not used, traded,
4    sold, or otherwise transferred the credit.
5        (3) The same renewable energy credit may be used by an
6    alternative retail electric supplier to comply with a
7    federal renewable portfolio standard and a renewable
8    portfolio standard established under this Act. An
9    alternative retail electric supplier that uses a renewable
10    energy credit to comply with a renewable portfolio
11    standard imposed by any other state may not use the same
12    credit to comply with a renewable portfolio standard
13    established under this Act.
14    (d) Alternative compliance payments.
15        (1) The Commission shall establish and post on its
16    website, within 5 business days after entering an order
17    approving a procurement plan pursuant to Section 1-75 of
18    the Illinois Power Agency Act, maximum alternative
19    compliance payment rates, expressed on a per kilowatt-hour
20    basis, that will be applicable in the first compliance
21    period following the plan approval. A separate maximum
22    alternative compliance payment rate shall be established
23    for the service territory of each electric utility that is
24    subject to subsection (c) of Section 1-75 of the Illinois
25    Power Agency Act. Each maximum alternative compliance
26    payment rate shall be equal to the maximum allowable

 

 

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1    annual estimated average net increase due to the costs of
2    the utility's purchase of renewable energy resources
3    included in the amounts paid by eligible retail customers
4    in connection with electric service, as described in item
5    (2) of subsection (c) of Section 1-75 of the Illinois
6    Power Agency Act for the compliance period, and as
7    established in the approved procurement plan. Following
8    each procurement event through which renewable energy
9    resources are purchased for one or more of these utilities
10    for the compliance period, the Commission shall establish
11    and post on its website estimates of the alternative
12    compliance payment rates, expressed on a per kilowatt-hour
13    basis, that shall apply for that compliance period.
14    Posting of the estimates shall occur no later than 10
15    business days following the procurement event, however,
16    the Commission shall not be required to establish and post
17    such estimates more often than once per calendar month. By
18    July 1 of each year, the Commission shall establish and
19    post on its website the actual alternative compliance
20    payment rates for the preceding compliance year. For
21    compliance years beginning prior to June 1, 2014, each
22    alternative compliance payment rate shall be equal to the
23    total amount of dollars that the utility contracted to
24    spend on renewable resources, excepting the additional
25    incremental cost attributable to solar resources, for the
26    compliance period divided by the forecasted load of

 

 

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1    eligible retail customers, at the customers' meters, as
2    previously established in the Commission-approved
3    procurement plan for that compliance year. For compliance
4    years commencing on or after June 1, 2014, each
5    alternative compliance payment rate shall be equal to the
6    total amount of dollars that the utility contracted to
7    spend on all renewable resources for the compliance period
8    divided by the forecasted load of retail customers for
9    which the utility is procuring renewable energy resources
10    in a given delivery year, at the customers' meters, as
11    previously established in the Commission-approved
12    procurement plan for that compliance year. The actual
13    alternative compliance payment rates may not exceed the
14    maximum alternative compliance payment rates established
15    for the compliance period. For purposes of this subsection
16    (d), the term "eligible retail customers" has the same
17    meaning as found in Section 16-111.5 of this Act.
18        (2) In any given compliance year, an alternative
19    retail electric supplier may elect to use alternative
20    compliance payments to comply with all or a part of the
21    applicable renewable portfolio standard. In the event that
22    an alternative retail electric supplier elects to make
23    alternative compliance payments to comply with all or a
24    part of the applicable renewable portfolio standard, such
25    payments shall be made by September 1, 2010 for the period
26    of June 1, 2009 to May 1, 2010 and by September 1 of each

 

 

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1    year thereafter for the subsequent compliance period, in
2    the manner and form as determined by the Commission. Any
3    election by an alternative retail electric supplier to use
4    alternative compliance payments is subject to review by
5    the Commission under subsection (e) of this Section.
6        (3) An alternative retail electric supplier's
7    alternative compliance payments shall be computed
8    separately for each electric utility's service territory
9    within which the alternative retail electric supplier
10    provided retail service during the compliance period,
11    provided that the electric utility was subject to
12    subsection (c) of Section 1-75 of the Illinois Power
13    Agency Act. For each service territory, the alternative
14    retail electric supplier's alternative compliance payment
15    shall be equal to (i) the actual alternative compliance
16    payment rate established in item (1) of this subsection
17    (d), multiplied by (ii) the actual amount of metered
18    electricity delivered by the alternative retail electric
19    supplier to retail customers for which the supplier has a
20    compliance obligation within the service territory during
21    the compliance period, multiplied by (iii) the result of
22    one minus the ratios of the quantity of renewable energy
23    resources used by the alternative retail electric supplier
24    to comply with the requirements of this Section within the
25    service territory to the product of the percentage of
26    renewable energy resources required under item (3) or

 

 

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1    (3.5) of subsection (a) of this Section and the actual
2    amount of metered electricity delivered by the alternative
3    retail electrical supplier to retail customers for which
4    the supplier has a compliance obligation within the
5    service territory during the compliance period.
6        (4) Through May 31, 2017, all alternative compliance
7    payments by alternative retail electric suppliers shall be
8    deposited in the Illinois Power Agency Renewable Energy
9    Resources Fund and used to purchase renewable energy
10    credits, in accordance with Section 1-56 of the Illinois
11    Power Agency Act. Beginning April 1, 2012 and by April 1 of
12    each year thereafter, the Illinois Power Agency shall
13    submit an annual report to the General Assembly, the
14    Commission, and alternative retail electric suppliers that
15    shall include, but not be limited to:
16            (A) the total amount of alternative compliance
17        payments received in aggregate from alternative retail
18        electric suppliers by planning year for all previous
19        planning years in which the alternative compliance
20        payment was in effect;
21            (B) the amount of those payments utilized to
22        purchased renewable energy credits itemized by the
23        date of each procurement in which the payments were
24        utilized; and
25            (C) the unused and remaining balance in the Agency
26        Renewable Energy Resources Fund attributable to those

 

 

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1        payments.
2        (4.5) Beginning with the delivery year commencing June
3    1, 2017, all alternative compliance payments by
4    alternative retail electric suppliers shall be remitted to
5    the applicable electric utility. To facilitate this
6    remittance, each electric utility shall file a tariff with
7    the Commission no later than 30 days following the
8    effective date of this amendatory Act of the 99th General
9    Assembly, which the Commission shall approve, after notice
10    and hearing, no later than 45 days after its filing. The
11    Illinois Power Agency shall use such payments to increase
12    the amount of renewable energy resources otherwise to be
13    procured under subsection (c) of Section 1-75 of the
14    Illinois Power Agency Act.
15        (5) The Commission, in consultation with the Illinois
16    Power Agency, shall establish a process or proceeding to
17    consider the impact of a federal renewable portfolio
18    standard, if enacted, on the operation of the alternative
19    compliance mechanism, which shall include, but not be
20    limited to, developing, to the extent permitted by the
21    applicable federal statute, an appropriate methodology to
22    apportion renewable energy credits retired as a result of
23    alternative compliance payments made in accordance with
24    this Section. The Commission shall commence any such
25    process or proceeding within 35 days after enactment of a
26    federal renewable portfolio standard.

 

 

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1    (e) Each alternative retail electric supplier shall, by
2September 1, 2010 and by September 1 of each year thereafter,
3prepare and submit to the Commission a report, in a format to
4be specified by the Commission, that provides information
5certifying compliance by the alternative retail electric
6supplier with this Section, including copies of all PJM-GATS
7and M-RETS reports, and documentation relating to banking,
8retiring renewable energy credits, and any other information
9that the Commission determines necessary to ensure compliance
10with this Section.
11    An alternative retail electric supplier may file
12commercially or financially sensitive information or trade
13secrets with the Commission as provided under the rules of the
14Commission. To be filed confidentially, the information shall
15be accompanied by an affidavit that sets forth both the
16reasons for the confidentiality and a public synopsis of the
17information.
18    (f) The Commission may initiate a contested case to review
19allegations that the alternative retail electric supplier has
20violated this Section, including an order issued or rule
21promulgated under this Section. In any such proceeding, the
22alternative retail electric supplier shall have the burden of
23proof. If the Commission finds, after notice and hearing, that
24an alternative retail electric supplier has violated this
25Section, then the Commission shall issue an order requiring
26the alternative retail electric supplier to:

 

 

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1        (1) immediately comply with this Section; and
2        (2) if the violation involves a failure to procure the
3    requisite quantity of renewable energy resources or pay
4    the applicable alternative compliance payment by the
5    annual deadline, the Commission shall require the
6    alternative retail electric supplier to double the
7    applicable alternative compliance payment that would
8    otherwise be required to bring the alternative retail
9    electric supplier into compliance with this Section.
10    If an alternative retail electric supplier fails to comply
11with the renewable energy resource portfolio requirement in
12this Section more than once in a 5-year period, then the
13Commission shall revoke the alternative electric supplier's
14certificate of service authority. The Commission shall not
15accept an application for a certificate of service authority
16from an alternative retail electric supplier that has lost
17certification under this subsection (f), or any corporate
18affiliate thereof, for at least one year after the date of
19revocation.
20    (g) All of the provisions of this Section apply to
21electric utilities operating outside their service area except
22under item (2) of subsection (a) of this Section the quantity
23of renewable energy resources shall be measured as a
24percentage of the actual amount of electricity
25(megawatt-hours) supplied in the State outside of the
26utility's service territory during the 12-month period June 1

 

 

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1through May 31, commencing June 1, 2009, and the comparable
212-month period in each year thereafter except as provided in
3item (6) of subsection (a) of this Section.
4    If any such utility fails to procure the requisite
5quantity of renewable energy resources by the annual deadline,
6then the Commission shall require the utility to double the
7alternative compliance payment that would otherwise be
8required to bring the utility into compliance with this
9Section.
10    If any such utility fails to comply with the renewable
11energy resource portfolio requirement in this Section more
12than once in a 5-year period, then the Commission shall order
13the utility to cease all sales outside of the utility's
14service territory for a period of at least one year.
15    (h) The provisions of this Section and the provisions of
16subsection (d) of Section 16-115 of this Act relating to
17procurement of renewable energy resources, and the provisions
18of paragraph (6) of subsection (c) of Section 1-75 of the
19Illinois Power Agency Act relating to the payments by retail
20customers of a utility for the purpose of recovering the
21utility's costs for procuring renewable energy credits, shall
22not apply to an alternative retail electric supplier, or the
23retail customers of an alternative retail electric supplier,
24that operates a combined heat and power system in this State or
25that has a corporate affiliate that operates such a combined
26heat and power system in this State that supplies electricity

 

 

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1primarily to or for the benefit of: (i) facilities owned by the
2supplier, its subsidiary, or other corporate affiliate; (ii)
3facilities electrically integrated with the electrical system
4of facilities owned by the supplier, its subsidiary, or other
5corporate affiliate; or (iii) facilities that are adjacent to
6the site on which the combined heat and power system is
7located.
8    (i) The obligations of alternative retail electric
9suppliers and electric utilities operating outside their
10service territories to procure renewable energy resources,
11make alternative compliance payments, and file annual reports,
12and the obligations of the Commission to determine and post
13alternative compliance payment rates, shall terminate after
14May 31, 2019, provided that alternative retail electric
15suppliers and electric utilities operating outside their
16service territories shall be obligated to make all alternative
17compliance payments that they were obligated to pay for
18periods through and including May 31, 2019, but were not paid
19as of that date. The Commission shall continue to enforce the
20payment of unpaid alternative compliance payments in
21accordance with subsections (f) and (g) of this Section. All
22alternative compliance payments made after May 31, 2016 shall
23be remitted to the applicable electric utility and used to
24purchase renewable energy credits, in accordance with Section
251-75 of the Illinois Power Agency Act.
26    This subsection (i) is intended to accommodate the

 

 

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1transition to the procurement of renewable energy resources
2for all retail customers in the amounts specified under
3subsection (c) of Section 1-75 of the Illinois Power Agency
4Act and Section 16-111.5 of this Act, including but not
5limited to the transition to a single charge applicable to all
6retail customers to recover the costs of these resources. Each
7alternative retail electric supplier shall certify in its
8annual reports filed pursuant to subsection (e) of this
9Section after May 31, 2019, that its retail customers are not
10paying the costs of alternative compliance payments or
11renewable energy resources that the alternative retail
12electric supplier is not required to remit or purchase under
13this Section. The Commission shall have the authority to
14initiate an emergency rulemaking to adopt rules regarding such
15certification.
16(Source: P.A. 99-906, eff. 6-1-17.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.