103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1474

 

Introduced 2/7/2023, by Sen. Rachel Ventura

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-10
20 ILCS 3855/1-56
220 ILCS 5/8-512

    Amends the Illinois Power Agency Act. Provides that there shall be created a low-income community hydropower pilot project program. Provides that under this program, persons shall propose pilot community hydropower projects. Provides that community hydropower projects proposed may exceed 2,000 kilowatts in nameplate capacity, and the amount paid per project under this program may not exceed $20,000,000. Provides that pilot projects must result in economic benefits for the members of the community in which the project will be located. Provides that the proposed pilot project must include a partnership with at least one community-based organization. Provides that approved pilot projects shall be competitively bid by the Illinois Power Agency, subject to fair and equitable guidelines developed by the Agency. Provides that contracts entered into under this program may be entered into with an entity that will develop and administer the program or with developers and shall also include contracts for renewable energy credits related to the program. Provides that a project proposed by a utility shall not be included in the utility's rate base. Makes corresponding changes to the Act and the Public Utilities Act.


LRB103 29372 AMQ 55761 b

 

 

A BILL FOR

 

SB1474LRB103 29372 AMQ 55761 b

1    AN ACT concerning State government.
 
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 Sections 1-10 and 1-56 as follows:
 
6    (20 ILCS 3855/1-10)
7    Sec. 1-10. Definitions.
8    "Agency" means the Illinois Power Agency.
9    "Agency loan agreement" means any agreement pursuant to
10which the Illinois Finance Authority agrees to loan the
11proceeds of revenue bonds issued with respect to a project to
12the Agency upon terms providing for loan repayment
13installments at least sufficient to pay when due all principal
14of, interest and premium, if any, on those revenue bonds, and
15providing for maintenance, insurance, and other matters in
16respect of the project.
17    "Authority" means the Illinois Finance Authority.
18    "Brownfield site photovoltaic project" means photovoltaics
19that are either:
20        (1) interconnected to an electric utility as defined
21    in this Section, a municipal utility as defined in this
22    Section, a public utility as defined in Section 3-105 of
23    the Public Utilities Act, or an electric cooperative as

 

 

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1    defined in Section 3-119 of the Public Utilities Act and
2    located at a site that is regulated by any of the following
3    entities under the following programs:
4            (A) the United States Environmental Protection
5        Agency under the federal Comprehensive Environmental
6        Response, Compensation, and Liability Act of 1980, as
7        amended;
8            (B) the United States Environmental Protection
9        Agency under the Corrective Action Program of the
10        federal Resource Conservation and Recovery Act, as
11        amended;
12            (C) the Illinois Environmental Protection Agency
13        under the Illinois Site Remediation Program; or
14            (D) the Illinois Environmental Protection Agency
15        under the Illinois Solid Waste Program; or
16        (2) located at the site of a coal mine that has
17    permanently ceased coal production, permanently halted any
18    re-mining operations, and is no longer accepting any coal
19    combustion residues; has both completed all clean-up and
20    remediation obligations under the federal Surface Mining
21    and Reclamation Act of 1977 and all applicable Illinois
22    rules and any other clean-up, remediation, or ongoing
23    monitoring to safeguard the health and well-being of the
24    people of the State of Illinois, as well as demonstrated
25    compliance with all applicable federal and State
26    environmental rules and regulations, including, but not

 

 

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1    limited, to 35 Ill. Adm. Code Part 845 and any rules for
2    historic fill of coal combustion residuals, including any
3    rules finalized in Subdocket A of Illinois Pollution
4    Control Board docket R2020-019.
5    "Clean coal facility" means an electric generating
6facility that uses primarily coal as a feedstock and that
7captures and sequesters carbon dioxide emissions at the
8following levels: at least 50% of the total carbon dioxide
9emissions that the facility would otherwise emit if, at the
10time construction commences, the facility is scheduled to
11commence operation before 2016, at least 70% of the total
12carbon dioxide emissions that the facility would otherwise
13emit if, at the time construction commences, the facility is
14scheduled to commence operation during 2016 or 2017, and at
15least 90% of the total carbon dioxide emissions that the
16facility would otherwise emit if, at the time construction
17commences, the facility is scheduled to commence operation
18after 2017. The power block of the clean coal facility shall
19not exceed allowable emission rates for sulfur dioxide,
20nitrogen oxides, carbon monoxide, particulates and mercury for
21a natural gas-fired combined-cycle facility the same size as
22and in the same location as the clean coal facility at the time
23the clean coal facility obtains an approved air permit. All
24coal used by a clean coal facility shall have high volatile
25bituminous rank and greater than 1.7 pounds of sulfur per
26million Btu btu content, unless the clean coal facility does

 

 

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1not use gasification technology and was operating as a
2conventional coal-fired electric generating facility on June
31, 2009 (the effective date of Public Act 95-1027).
4    "Clean coal SNG brownfield facility" means a facility that
5(1) has commenced construction by July 1, 2015 on an urban
6brownfield site in a municipality with at least 1,000,000
7residents; (2) uses a gasification process to produce
8substitute natural gas; (3) uses coal as at least 50% of the
9total feedstock over the term of any sourcing agreement with a
10utility and the remainder of the feedstock may be either
11petroleum coke or coal, with all such coal having a high
12bituminous rank and greater than 1.7 pounds of sulfur per
13million Btu content unless the facility reasonably determines
14that it is necessary to use additional petroleum coke to
15deliver additional consumer savings, in which case the
16facility shall use coal for at least 35% of the total feedstock
17over the term of any sourcing agreement; and (4) captures and
18sequesters at least 85% of the total carbon dioxide emissions
19that the facility would otherwise emit.
20    "Clean coal SNG facility" means a facility that uses a
21gasification process to produce substitute natural gas, that
22sequesters at least 90% of the total carbon dioxide emissions
23that the facility would otherwise emit, that uses at least 90%
24coal as a feedstock, with all such coal having a high
25bituminous rank and greater than 1.7 pounds of sulfur per
26million Btu btu content, and that has a valid and effective

 

 

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1permit to construct emission sources and air pollution control
2equipment and approval with respect to the federal regulations
3for Prevention of Significant Deterioration of Air Quality
4(PSD) for the plant pursuant to the federal Clean Air Act;
5provided, however, a clean coal SNG brownfield facility shall
6not be a clean coal SNG facility.
7    "Clean energy" means energy generation that is 90% or
8greater free of carbon dioxide emissions.
9    "Commission" means the Illinois Commerce Commission.
10    "Community renewable generation project" means an electric
11generating facility that:
12        (1) is powered by wind, solar thermal energy,
13    photovoltaic cells or panels, biodiesel, crops and
14    untreated and unadulterated organic waste biomass, and
15    hydropower that does not involve new construction or
16    significant expansion of hydropower dams;
17        (2) is interconnected at the distribution system level
18    of an electric utility as defined in this Section, a
19    municipal utility as defined in this Section that owns or
20    operates electric distribution facilities, a public
21    utility as defined in Section 3-105 of the Public
22    Utilities Act, or an electric cooperative, as defined in
23    Section 3-119 of the Public Utilities Act;
24        (3) credits the value of electricity generated by the
25    facility to the subscribers of the facility; and
26        (4) is limited in nameplate capacity to less than or

 

 

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1    equal to 5,000 kilowatts.
2    "Costs incurred in connection with the development and
3construction of a facility" means:
4        (1) the cost of acquisition of all real property,
5    fixtures, and improvements in connection therewith and
6    equipment, personal property, and other property, rights,
7    and easements acquired that are deemed necessary for the
8    operation and maintenance of the facility;
9        (2) financing costs with respect to bonds, notes, and
10    other evidences of indebtedness of the Agency;
11        (3) all origination, commitment, utilization,
12    facility, placement, underwriting, syndication, credit
13    enhancement, and rating agency fees;
14        (4) engineering, design, procurement, consulting,
15    legal, accounting, title insurance, survey, appraisal,
16    escrow, trustee, collateral agency, interest rate hedging,
17    interest rate swap, capitalized interest, contingency, as
18    required by lenders, and other financing costs, and other
19    expenses for professional services; and
20        (5) the costs of plans, specifications, site study and
21    investigation, installation, surveys, other Agency costs
22    and estimates of costs, and other expenses necessary or
23    incidental to determining the feasibility of any project,
24    together with such other expenses as may be necessary or
25    incidental to the financing, insuring, acquisition, and
26    construction of a specific project and starting up,

 

 

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1    commissioning, and placing that project in operation.
2    "Delivery services" has the same definition as found in
3Section 16-102 of the Public Utilities Act.
4    "Delivery year" means the consecutive 12-month period
5beginning June 1 of a given year and ending May 31 of the
6following year.
7    "Department" means the Department of Commerce and Economic
8Opportunity.
9    "Director" means the Director of the Illinois Power
10Agency.
11    "Demand-response" means measures that decrease peak
12electricity demand or shift demand from peak to off-peak
13periods.
14    "Distributed renewable energy generation device" means a
15device that is:
16        (1) powered by wind, solar thermal energy,
17    photovoltaic cells or panels, biodiesel, crops and
18    untreated and unadulterated organic waste biomass, tree
19    waste, and hydropower that does not involve new
20    construction or significant expansion of hydropower dams,
21    waste heat to power systems, or qualified combined heat
22    and power systems;
23        (2) interconnected at the distribution system level of
24    either an electric utility as defined in this Section, a
25    municipal utility as defined in this Section that owns or
26    operates electric distribution facilities, or a rural

 

 

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1    electric cooperative as defined in Section 3-119 of the
2    Public Utilities Act;
3        (3) located on the customer side of the customer's
4    electric meter and is primarily used to offset that
5    customer's electricity load; and
6        (4) (blank).
7    "Energy efficiency" means measures that reduce the amount
8of electricity or natural gas consumed in order to achieve a
9given end use. "Energy efficiency" includes voltage
10optimization measures that optimize the voltage at points on
11the electric distribution voltage system and thereby reduce
12electricity consumption by electric customers' end use
13devices. "Energy efficiency" also includes measures that
14reduce the total Btus of electricity, natural gas, and other
15fuels needed to meet the end use or uses.
16    "Electric utility" has the same definition as found in
17Section 16-102 of the Public Utilities Act.
18    "Equity investment eligible community" or "eligible
19community" are synonymous and mean the geographic areas
20throughout Illinois which would most benefit from equitable
21investments by the State designed to combat discrimination.
22Specifically, the eligible communities shall be defined as the
23following areas:
24        (1) R3 Areas as established pursuant to Section 10-40
25    of the Cannabis Regulation and Tax Act, where residents
26    have historically been excluded from economic

 

 

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1    opportunities, including opportunities in the energy
2    sector; and
3        (2) environmental Environmental justice communities,
4    as defined by the Illinois Power Agency pursuant to the
5    Illinois Power Agency Act, where residents have
6    historically been subject to disproportionate burdens of
7    pollution, including pollution from the energy sector.
8    "Equity eligible persons" or "eligible persons" means
9persons who would most benefit from equitable investments by
10the State designed to combat discrimination, specifically:
11        (1) persons who graduate from or are current or former
12    participants in the Clean Jobs Workforce Network Program,
13    the Clean Energy Contractor Incubator Program, the
14    Illinois Climate Works Preapprenticeship Program,
15    Returning Residents Clean Jobs Training Program, or the
16    Clean Energy Primes Contractor Accelerator Program, and
17    the solar training pipeline and multi-cultural jobs
18    program created in paragraphs (a)(1) and (a)(3) of Section
19    16-208.12 16-108.21 of the Public Utilities Act;
20        (2) persons who are graduates of or currently enrolled
21    in the foster care system;
22        (3) persons who were formerly incarcerated;
23        (4) persons whose primary residence is in an equity
24    investment eligible community.
25    "Equity eligible contractor" means a business that is
26majority-owned by eligible persons, or a nonprofit or

 

 

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

 

 

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1transmission facilities.
2    "High voltage direct current transmission facilities"
3means the collection of installed equipment that converts
4alternating current energy in one location to direct current
5and transmits that direct current energy to a high voltage
6direct current converter station using Voltage Source
7Conversion technology. "High voltage direct current
8transmission facilities" includes the high voltage direct
9current converter station itself and associated high voltage
10direct current transmission lines. Notwithstanding the
11preceding, after September 15, 2021 (the effective date of
12Public Act 102-662) this amendatory Act of the 102nd General
13Assembly, an otherwise qualifying collection of equipment does
14not qualify as high voltage direct current transmission
15facilities unless its developer entered into a project labor
16agreement, is capable of transmitting electricity at 525kv
17with an Illinois converter station located and interconnected
18in the region of the PJM Interconnection, LLC, and the system
19does not operate as a public utility, as that term is defined
20in Section 3-105 of the Public Utilities Act.
21    "Index price" means the real-time energy settlement price
22at the applicable Illinois trading hub, such as PJM-NIHUB or
23MISO-IL, for a given settlement period.
24    "Indexed renewable energy credit" means a tradable credit
25that represents the environmental attributes of one megawatt
26hour of energy produced from a renewable energy resource, the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1SNG brownfield facility, or a party with which a clean coal
2facility, clean coal SNG facility, or clean coal SNG
3brownfield facility has contracted for such purposes.
4    "Service area" has the same definition as found in Section
516-102 of the Public Utilities Act.
6    "Settlement period" means the period of time utilized by
7MISO and PJM and their successor organizations as the basis
8for settlement calculations in the real-time energy market.
9    "Sourcing agreement" means (i) in the case of an electric
10utility, an agreement between the owner of a clean coal
11facility and such electric utility, which agreement shall have
12terms and conditions meeting the requirements of paragraph (3)
13of subsection (d) of Section 1-75, (ii) in the case of an
14alternative retail electric supplier, an agreement between the
15owner of a clean coal facility and such alternative retail
16electric supplier, which agreement shall have terms and
17conditions meeting the requirements of Section 16-115(d)(5) of
18the Public Utilities Act, and (iii) in case of a gas utility,
19an agreement between the owner of a clean coal SNG brownfield
20facility and the gas utility, which agreement shall have the
21terms and conditions meeting the requirements of subsection
22(h-1) of Section 9-220 of the Public Utilities Act.
23    "Strike price" means a contract price for energy and
24renewable energy credits from a new utility-scale wind project
25or a new utility-scale photovoltaic project.
26    "Subscriber" means a person who (i) takes delivery service

 

 

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

 

 

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

 

 

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1        (2) has a nameplate capacity that is greater than
2    5,000 kilowatts.
3    "Utility-scale wind project" means an electric generating
4facility that:
5        (1) generates electricity using wind; and
6        (2) has a nameplate capacity that is greater than
7    5,000 kilowatts.
8    "Waste Heat to Power Systems" means systems that capture
9and generate electricity from energy that would otherwise be
10lost to the atmosphere without the use of additional fuel.
11    "Zero emission credit" means a tradable credit that
12represents the environmental attributes of one megawatt hour
13of energy produced from a zero emission facility.
14    "Zero emission facility" means a facility that: (1) is
15fueled by nuclear power; and (2) is interconnected with PJM
16Interconnection, LLC or the Midcontinent Independent System
17Operator, Inc., or their successors.
18(Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
 
19    (20 ILCS 3855/1-56)
20    Sec. 1-56. Illinois Power Agency Renewable Energy
21Resources Fund; Illinois Solar for All Program.
22    (a) The Illinois Power Agency Renewable Energy Resources
23Fund is created as a special fund in the State treasury.
24    (b) The Illinois Power Agency Renewable Energy Resources
25Fund shall be administered by the Agency as described in this

 

 

SB1474- 20 -LRB103 29372 AMQ 55761 b

1subsection (b), provided that the changes to this subsection
2(b) made by this amendatory Act of the 99th General Assembly
3shall not interfere with existing contracts under this
4Section.
5        (1) The Illinois Power Agency Renewable Energy
6    Resources Fund shall be used to purchase renewable energy
7    credits according to any approved procurement plan
8    developed by the Agency prior to June 1, 2017.
9        (2) The Illinois Power Agency Renewable Energy
10    Resources Fund shall also be used to create the Illinois
11    Solar for All Program, which provides incentives for
12    low-income distributed generation and community solar
13    projects, and other associated approved expenditures. The
14    objectives of the Illinois Solar for All Program are to
15    bring photovoltaics to low-income communities in this
16    State in a manner that maximizes the development of new
17    photovoltaic generating facilities, to create a long-term,
18    low-income solar marketplace throughout this State, to
19    integrate, through interaction with stakeholders, with
20    existing energy efficiency initiatives, and to minimize
21    administrative costs. The Illinois Solar for All Program
22    shall be implemented in a manner that seeks to minimize
23    administrative costs, and maximize efficiencies and
24    synergies available through coordination with similar
25    initiatives, including the Adjustable Block program
26    described in subparagraphs (K) through (M) of paragraph

 

 

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1    (1) of subsection (c) of Section 1-75, energy efficiency
2    programs, job training programs, and community action
3    agencies. The Agency shall strive to ensure that renewable
4    energy credits procured through the Illinois Solar for All
5    Program and each of its subprograms are purchased from
6    projects across the breadth of low-income and
7    environmental justice communities in Illinois, including
8    both urban and rural communities, are not concentrated in
9    a few communities, and do not exclude particular
10    low-income or environmental justice communities. The
11    Agency shall include a description of its proposed
12    approach to the design, administration, implementation and
13    evaluation of the Illinois Solar for All Program, as part
14    of the long-term renewable resources procurement plan
15    authorized by subsection (c) of Section 1-75 of this Act,
16    and the program shall be designed to grow the low-income
17    solar market. The Agency or utility, as applicable, shall
18    purchase renewable energy credits from the (i)
19    photovoltaic distributed renewable energy generation
20    projects and (ii) community solar projects that are
21    procured under procurement processes authorized by the
22    long-term renewable resources procurement plans approved
23    by the Commission.
24        The Illinois Solar for All Program shall include the
25    program offerings described in subparagraphs (A) through
26    (E) of this paragraph (2), which the Agency shall

 

 

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1    implement through contracts with third-party providers
2    and, subject to appropriation, pay the approximate amounts
3    identified using monies available in the Illinois Power
4    Agency Renewable Energy Resources Fund. Each contract that
5    provides for the installation of solar facilities shall
6    provide that the solar facilities will produce energy and
7    economic benefits, at a level determined by the Agency to
8    be reasonable, for the participating low income customers.
9    The monies available in the Illinois Power Agency
10    Renewable Energy Resources Fund and not otherwise
11    committed to contracts executed under subsection (i) of
12    this Section, as well as, in the case of the programs
13    described under subparagraphs (A) through (E) of this
14    paragraph (2), funding authorized pursuant to subparagraph
15    (O) of paragraph (1) of subsection (c) of Section 1-75 of
16    this Act, shall initially be allocated among the programs
17    described in this paragraph (2), as follows: 35% of these
18    funds shall be allocated to programs described in
19    subparagraphs (A) and (E) of this paragraph (2), 40% of
20    these funds shall be allocated to programs described in
21    subparagraph (B) of this paragraph (2), and 25% of these
22    funds shall be allocated to programs described in
23    subparagraph (C) of this paragraph (2). The allocation of
24    funds among subparagraphs (A), (B), (C), and (E) of this
25    paragraph (2) may be changed if the Agency, after
26    receiving input through a stakeholder process, determines

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1474- 28 -LRB103 29372 AMQ 55761 b

1        program be allocated to community photovoltaic
2        projects in environmental justice communities. The
3        Agency shall reserve a portion of this program for
4        projects that promote energy sovereignty through
5        ownership of projects by low-income households,
6        not-for-profit organizations providing services to
7        low-income households, affordable housing owners, or
8        community-based limited liability companies providing
9        services to low-income households. Projects that
10        feature energy ownership should ensure that local
11        people have control of the project and reap benefits
12        from the project over and above energy bill savings.
13        The Agency may consider the inclusion of projects that
14        promote ownership over time or that involve partial
15        project ownership by communities, as promoting energy
16        sovereignty. Incentives for projects that promote
17        energy sovereignty may be higher than incentives for
18        equivalent projects that do not promote energy
19        sovereignty under this same program. Contracts entered
20        into under this paragraph may be entered into with
21        developers and shall also include contracts for
22        renewable energy credits related to the program.
23            (C) Incentives for non-profits and public
24        facilities. Under this program funds shall be used to
25        support on-site photovoltaic distributed renewable
26        energy generation devices to serve the load associated

 

 

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

 

 

SB1474- 30 -LRB103 29372 AMQ 55761 b

1        customers, either directly or through solar providers,
2        to increase the participation of low-income households
3        in photovoltaic on-site distributed generation at
4        residential buildings with 5 or more units. Companies
5        participating in this program that develop or install
6        solar projects shall commit to hiring job trainees for
7        a portion of their low-income installations, and an
8        administrator shall facilitate partnering the
9        companies that install solar projects with entities
10        that provide solar installation and related job
11        training. It is a goal of this program that a minimum
12        of 25% of the incentives for this program be allocated
13        to projects located within environmental justice
14        communities. The Agency shall reserve a portion of
15        this program for projects that promote energy
16        sovereignty through ownership of projects by
17        low-income households, not-for-profit organizations
18        providing services to low-income households,
19        affordable housing owners, or community-based limited
20        liability companies providing services to low-income
21        households. Projects that feature energy ownership
22        should ensure that local people have control of the
23        project and reap benefits from the project over and
24        above energy bill savings. The Agency may consider the
25        inclusion of projects that promote ownership over time
26        or that involve partial project ownership by

 

 

SB1474- 31 -LRB103 29372 AMQ 55761 b

1        communities, as promoting energy sovereignty.
2        Incentives for projects that promote energy
3        sovereignty may be higher than incentives for
4        equivalent projects that do not promote energy
5        sovereignty under this same program.
6        The requirement that a qualified person, as defined in
7    paragraph (1) of subsection (i) of this Section, install
8    photovoltaic devices does not apply to the Illinois Solar
9    for All Program described in this subsection (b).
10        In addition to the programs outlined in paragraphs (A)
11    through (E), the Agency and other parties may propose
12    additional programs through the Long-Term Renewable
13    Resources Procurement Plan developed and approved under
14    paragraph (5) of subsection (b) of Section 16-111.5 of the
15    Public Utilities Act. Additional programs may target
16    market segments not specified above and may also include
17    incentives targeted to increase the uptake of
18    nonphotovoltaic technologies by low-income customers,
19    including energy storage paired with photovoltaics, if the
20    Commission determines that the Illinois Solar for All
21    Program would provide greater benefits to the public
22    health and well-being of low-income residents through also
23    supporting that additional program versus supporting
24    programs already authorized.
25        (3) Costs associated with the Illinois Solar for All
26    Program and its components described in paragraph (2) of

 

 

SB1474- 32 -LRB103 29372 AMQ 55761 b

1    this subsection (b), including, but not limited to, costs
2    associated with procuring experts, consultants, and the
3    program administrator referenced in this subsection (b)
4    and related incremental costs, costs related to income
5    verification and facilitating customer participation in
6    the program, and costs related to the evaluation of the
7    Illinois Solar for All Program, may be paid for using
8    monies in the Illinois Power Agency Renewable Energy
9    Resources Fund, and funds allocated pursuant to
10    subparagraph (O) of paragraph (1) of subsection (c) of
11    Section 1-75, but the Agency or program administrator
12    shall strive to minimize costs in the implementation of
13    the program. The Agency or contracting electric utility
14    shall purchase renewable energy credits from generation
15    that is the subject of a contract under subparagraphs (A)
16    through (E) of paragraph (2) of this subsection (b), and
17    may pay for such renewable energy credits through an
18    upfront payment per installed kilowatt of nameplate
19    capacity paid once the device is interconnected at the
20    distribution system level of the interconnecting utility
21    and verified as energized. Payments for renewable energy
22    credits shall be in exchange for all renewable energy
23    credits generated by the system during the first 15 years
24    of operation and shall be structured to overcome barriers
25    to participation in the solar market by the low-income
26    community. The incentives provided for in this Section may

 

 

SB1474- 33 -LRB103 29372 AMQ 55761 b

1    be implemented through the pricing of renewable energy
2    credits where the prices paid for the credits are higher
3    than the prices from programs offered under subsection (c)
4    of Section 1-75 of this Act to account for the additional
5    capital necessary to successfully access targeted market
6    segments. The Agency or contracting electric utility shall
7    retire any renewable energy credits purchased under this
8    program and the credits shall count towards the obligation
9    under subsection (c) of Section 1-75 of this Act for the
10    electric utility to which the project is interconnected,
11    if applicable.
12        The Agency shall direct that up to 5% of the funds
13    available under the Illinois Solar for All Program to
14    community-based groups and other qualifying organizations
15    to assist in community-driven education efforts related to
16    the Illinois Solar for All Program, including general
17    energy education, job training program outreach efforts,
18    and other activities deemed to be qualified by the Agency.
19    Grassroots education funding shall not be used to support
20    the marketing by solar project development firms and
21    organizations, unless such education provides equal
22    opportunities for all applicable firms and organizations.
23        (4) The Agency shall, consistent with the requirements
24    of this subsection (b), propose the Illinois Solar for All
25    Program terms, conditions, and requirements, including the
26    prices to be paid for renewable energy credits, and which

 

 

SB1474- 34 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474- 35 -LRB103 29372 AMQ 55761 b

1    qualifications for a third-party program administrator or
2    administrators to administer all or a portion of the
3    Illinois Solar for All Program. The third-party program
4    administrator shall be chosen through a competitive bid
5    process based on selection criteria and requirements
6    developed by the Agency, including, but not limited to,
7    experience in administering low-income energy programs and
8    overseeing statewide clean energy or energy efficiency
9    services. If the Agency retains a program administrator or
10    administrators to implement all or a portion of the
11    Illinois Solar for All Program, each administrator shall
12    periodically submit reports to the Agency and Commission
13    for each program that it administers, at appropriate
14    intervals to be identified by the Agency in its long-term
15    renewable resources procurement plan, provided that the
16    reporting interval is at least quarterly. The third-party
17    program administrator may be, but need not be, the same
18    administrator as for the Adjustable Block program
19    described in subparagraphs (K) through (M) of paragraph
20    (1) of subsection (c) of Section 1-75. The Agency, through
21    its long-term renewable resources procurement plan
22    approval process, shall also determine if individual
23    subprograms of the Illinois Solar for All Program are
24    better served by a different or separate Program
25    Administrator.
26        The third-party administrator's responsibilities

 

 

SB1474- 36 -LRB103 29372 AMQ 55761 b

1    shall also include facilitating placement for graduates of
2    Illinois-based renewable energy-specific job training
3    programs, including the Clean Jobs Workforce Network
4    Program and the Illinois Climate Works Preapprenticeship
5    Program administered by the Department of Commerce and
6    Economic Opportunity and programs administered under
7    Section 16-108.12 of the Public Utilities Act. To increase
8    the uptake of trainees by participating firms, the
9    administrator shall also develop a web-based clearinghouse
10    for information available to both job training program
11    graduates and firms participating, directly or indirectly,
12    in Illinois solar incentive programs. The program
13    administrator shall also coordinate its activities with
14    entities implementing electric and natural gas
15    income-qualified energy efficiency programs, including
16    customer referrals to and from such programs, and connect
17    prospective low-income solar customers with any existing
18    deferred maintenance programs where applicable.
19        (6) The long-term renewable resources procurement plan
20    shall also provide for an independent evaluation of the
21    Illinois Solar for All Program. At least every 2 years,
22    the Agency shall select an independent evaluator to review
23    and report on the Illinois Solar for All Program and the
24    performance of the third-party program administrator of
25    the Illinois Solar for All Program. The evaluation shall
26    be based on objective criteria developed through a public

 

 

SB1474- 37 -LRB103 29372 AMQ 55761 b

1    stakeholder process. The process shall include feedback
2    and participation from Illinois Solar for All Program
3    stakeholders, including participants and organizations in
4    environmental justice and historically underserved
5    communities. The report shall include a summary of the
6    evaluation of the Illinois Solar for All Program based on
7    the stakeholder developed objective criteria. The report
8    shall include the number of projects installed; the total
9    installed capacity in kilowatts; the average cost per
10    kilowatt of installed capacity to the extent reasonably
11    obtainable by the Agency; the number of jobs or job
12    opportunities created; economic, social, and environmental
13    benefits created; and the total administrative costs
14    expended by the Agency and program administrator to
15    implement and evaluate the program. The report shall be
16    delivered to the Commission and posted on the Agency's
17    website, and shall be used, as needed, to revise the
18    Illinois Solar for All Program. The Commission shall also
19    consider the results of the evaluation as part of its
20    review of the long-term renewable resources procurement
21    plan under subsection (c) of Section 1-75 of this Act.
22        (7) If additional funding for the programs described
23    in this subsection (b) is available under subsection (k)
24    of Section 16-108 of the Public Utilities Act, then the
25    Agency shall submit a procurement plan to the Commission
26    no later than September 1, 2018, that proposes how the

 

 

SB1474- 38 -LRB103 29372 AMQ 55761 b

1    Agency will procure programs on behalf of the applicable
2    utility. After notice and hearing, the Commission shall
3    approve, or approve with modification, the plan no later
4    than November 1, 2018.
5        (8) As part of the development and update of the
6    long-term renewable resources procurement plan authorized
7    by subsection (c) of Section 1-75 of this Act, the Agency
8    shall plan for: (A) actions to refer customers from the
9    Illinois Solar for All Program to electric and natural gas
10    income-qualified energy efficiency programs, and vice
11    versa, with the goal of increasing participation in both
12    of these programs; (B) effective procedures for data
13    sharing, as needed, to effectuate referrals between the
14    Illinois Solar for All Program and both electric and
15    natural gas income-qualified energy efficiency programs,
16    including sharing customer information directly with the
17    utilities, as needed and appropriate; and (C) efforts to
18    identify any existing deferred maintenance programs for
19    which prospective Solar for All Program customers may be
20    eligible and connect prospective customers for whom
21    deferred maintenance is or may be a barrier to solar
22    installation to those programs.
23    As used in this subsection (b), "low-income households"
24means persons and families whose income does not exceed 80% of
25area median income, adjusted for family size and revised every
265 years.

 

 

SB1474- 39 -LRB103 29372 AMQ 55761 b

1    For the purposes of this subsection (b), the Agency shall
2define "environmental justice community" based on the
3methodologies and findings established by the Agency and the
4Administrator for the Illinois Solar for All Program in its
5initial long-term renewable resources procurement plan and as
6updated by the Agency and the Administrator for the Illinois
7Solar for All Program as part of the long-term renewable
8resources procurement plan update.
9    (b-5) After the receipt of all payments required by
10Section 16-115D of the Public Utilities Act, no additional
11funds shall be deposited into the Illinois Power Agency
12Renewable Energy Resources Fund unless directed by order of
13the Commission.
14    (b-10) After the receipt of all payments required by
15Section 16-115D of the Public Utilities Act and payment in
16full of all contracts executed by the Agency under subsections
17(b) and (i) of this Section, if the balance of the Illinois
18Power Agency Renewable Energy Resources Fund is under $5,000,
19then the Fund shall be inoperative and any remaining funds and
20any funds submitted to the Fund after that date, shall be
21transferred to the Supplemental Low-Income Energy Assistance
22Fund for use in the Low-Income Home Energy Assistance Program,
23as authorized by the Energy Assistance Act.
24    (c) (Blank).
25    (d) (Blank).
26    (e) All renewable energy credits procured using monies

 

 

SB1474- 40 -LRB103 29372 AMQ 55761 b

1from the Illinois Power Agency Renewable Energy Resources Fund
2shall be permanently retired.
3    (f) The selection of one or more third-party program
4managers or administrators, the selection of the independent
5evaluator, and the procurement processes described in this
6Section are exempt from the requirements of the Illinois
7Procurement Code, under Section 20-10 of that Code.
8    (g) All disbursements from the Illinois Power Agency
9Renewable Energy Resources Fund shall be made only upon
10warrants of the Comptroller drawn upon the Treasurer as
11custodian of the Fund upon vouchers signed by the Director or
12by the person or persons designated by the Director for that
13purpose. The Comptroller is authorized to draw the warrant
14upon vouchers so signed. The Treasurer shall accept all
15warrants so signed and shall be released from liability for
16all payments made on those warrants.
17    (h) The Illinois Power Agency Renewable Energy Resources
18Fund shall not be subject to sweeps, administrative charges,
19or chargebacks, including, but not limited to, those
20authorized under Section 8h of the State Finance Act, that
21would in any way result in the transfer of any funds from this
22Fund to any other fund of this State or in having any such
23funds utilized for any purpose other than the express purposes
24set forth in this Section.
25    (h-5) The Agency may assess fees to each bidder to recover
26the costs incurred in connection with a procurement process

 

 

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1held under this Section. Fees collected from bidders shall be
2deposited into the Renewable Energy Resources Fund.
3    (i) Supplemental procurement process.
4        (1) Within 90 days after the effective date of this
5    amendatory Act of the 98th General Assembly, the Agency
6    shall develop a one-time supplemental procurement plan
7    limited to the procurement of renewable energy credits, if
8    available, from new or existing photovoltaics, including,
9    but not limited to, distributed photovoltaic generation.
10    Nothing in this subsection (i) requires procurement of
11    wind generation through the supplemental procurement.
12        Renewable energy credits procured from new
13    photovoltaics, including, but not limited to, distributed
14    photovoltaic generation, under this subsection (i) must be
15    procured from devices installed by a qualified person. In
16    its supplemental procurement plan, the Agency shall
17    establish contractually enforceable mechanisms for
18    ensuring that the installation of new photovoltaics is
19    performed by a qualified person.
20        For the purposes of this paragraph (1), "qualified
21    person" means a person who performs installations of
22    photovoltaics, including, but not limited to, distributed
23    photovoltaic generation, and who: (A) has completed an
24    apprenticeship as a journeyman electrician from a United
25    States Department of Labor registered electrical
26    apprenticeship and training program and received a

 

 

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1    certification of satisfactory completion; or (B) does not
2    currently meet the criteria under clause (A) of this
3    paragraph (1), but is enrolled in a United States
4    Department of Labor registered electrical apprenticeship
5    program, provided that the person is directly supervised
6    by a person who meets the criteria under clause (A) of this
7    paragraph (1); or (C) has obtained one of the following
8    credentials in addition to attesting to satisfactory
9    completion of at least 5 years or 8,000 hours of
10    documented hands-on electrical experience: (i) a North
11    American Board of Certified Energy Practitioners (NABCEP)
12    Installer Certificate for Solar PV; (ii) an Underwriters
13    Laboratories (UL) PV Systems Installer Certificate; (iii)
14    an Electronics Technicians Association, International
15    (ETAI) Level 3 PV Installer Certificate; or (iv) an
16    Associate in Applied Science degree from an Illinois
17    Community College Board approved community college program
18    in renewable energy or a distributed generation
19    technology.
20        For the purposes of this paragraph (1), "directly
21    supervised" means that there is a qualified person who
22    meets the qualifications under clause (A) of this
23    paragraph (1) and who is available for supervision and
24    consultation regarding the work performed by persons under
25    clause (B) of this paragraph (1), including a final
26    inspection of the installation work that has been directly

 

 

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1    supervised to ensure safety and conformity with applicable
2    codes.
3        For the purposes of this paragraph (1), "install"
4    means the major activities and actions required to
5    connect, in accordance with applicable building and
6    electrical codes, the conductors, connectors, and all
7    associated fittings, devices, power outlets, or
8    apparatuses mounted at the premises that are directly
9    involved in delivering energy to the premises' electrical
10    wiring from the photovoltaics, including, but not limited
11    to, to distributed photovoltaic generation.
12        The renewable energy credits procured pursuant to the
13    supplemental procurement plan shall be procured using up
14    to $30,000,000 from the Illinois Power Agency Renewable
15    Energy Resources Fund. The Agency shall not plan to use
16    funds from the Illinois Power Agency Renewable Energy
17    Resources Fund in excess of the monies on deposit in such
18    fund or projected to be deposited into such fund. The
19    supplemental procurement plan shall ensure adequate,
20    reliable, affordable, efficient, and environmentally
21    sustainable renewable energy resources (including credits)
22    at the lowest total cost over time, taking into account
23    any benefits of price stability.
24        To the extent available, 50% of the renewable energy
25    credits procured from distributed renewable energy
26    generation shall come from devices of less than 25

 

 

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1    kilowatts in nameplate capacity. Procurement of renewable
2    energy credits from distributed renewable energy
3    generation devices shall be done through multi-year
4    contracts of no less than 5 years. The Agency shall create
5    credit requirements for counterparties. In order to
6    minimize the administrative burden on contracting
7    entities, the Agency shall solicit the use of third
8    parties to aggregate distributed renewable energy. These
9    third parties shall enter into and administer contracts
10    with individual distributed renewable energy generation
11    device owners. An individual distributed renewable energy
12    generation device owner shall have the ability to measure
13    the output of his or her distributed renewable energy
14    generation device.
15        In developing the supplemental procurement plan, the
16    Agency shall hold at least one workshop open to the public
17    within 90 days after the effective date of this amendatory
18    Act of the 98th General Assembly and shall consider any
19    comments made by stakeholders or the public. Upon
20    development of the supplemental procurement plan within
21    this 90-day period, copies of the supplemental procurement
22    plan shall be posted and made publicly available on the
23    Agency's and Commission's websites. All interested parties
24    shall have 14 days following the date of posting to
25    provide comment to the Agency on the supplemental
26    procurement plan. All comments submitted to the Agency

 

 

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1    shall be specific, supported by data or other detailed
2    analyses, and, if objecting to all or a portion of the
3    supplemental procurement plan, accompanied by specific
4    alternative wording or proposals. All comments shall be
5    posted on the Agency's and Commission's websites. Within
6    14 days following the end of the 14-day review period, the
7    Agency shall revise the supplemental procurement plan as
8    necessary based on the comments received and file its
9    revised supplemental procurement plan with the Commission
10    for approval.
11        (2) Within 5 days after the filing of the supplemental
12    procurement plan at the Commission, any person objecting
13    to the supplemental procurement plan shall file an
14    objection with the Commission. Within 10 days after the
15    filing, the Commission shall determine whether a hearing
16    is necessary. The Commission shall enter its order
17    confirming or modifying the supplemental procurement plan
18    within 90 days after the filing of the supplemental
19    procurement plan by the Agency.
20        (3) The Commission shall approve the supplemental
21    procurement plan of renewable energy credits to be
22    procured from new or existing photovoltaics, including,
23    but not limited to, distributed photovoltaic generation,
24    if the Commission determines that it will ensure adequate,
25    reliable, affordable, efficient, and environmentally
26    sustainable electric service in the form of renewable

 

 

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1    energy credits at the lowest total cost over time, taking
2    into account any benefits of price stability.
3        (4) The supplemental procurement process under this
4    subsection (i) shall include each of the following
5    components:
6            (A) Procurement administrator. The Agency may
7        retain a procurement administrator in the manner set
8        forth in item (2) of subsection (a) of Section 1-75 of
9        this Act to conduct the supplemental procurement or
10        may elect to use the same procurement administrator
11        administering the Agency's annual procurement under
12        Section 1-75.
13            (B) Procurement monitor. The procurement monitor
14        retained by the Commission pursuant to Section
15        16-111.5 of the Public Utilities Act shall:
16                (i) monitor interactions among the procurement
17            administrator and bidders and suppliers;
18                (ii) monitor and report to the Commission on
19            the progress of the supplemental procurement
20            process;
21                (iii) provide an independent confidential
22            report to the Commission regarding the results of
23            the procurement events;
24                (iv) assess compliance with the procurement
25            plan approved by the Commission for the
26            supplemental procurement process;

 

 

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1                (v) preserve the confidentiality of supplier
2            and bidding information in a manner consistent
3            with all applicable laws, rules, regulations, and
4            tariffs;
5                (vi) provide expert advice to the Commission
6            and consult with the procurement administrator
7            regarding issues related to procurement process
8            design, rules, protocols, and policy-related
9            matters;
10                (vii) consult with the procurement
11            administrator regarding the development and use of
12            benchmark criteria, standard form contracts,
13            credit policies, and bid documents; and
14                (viii) perform, with respect to the
15            supplemental procurement process, any other
16            procurement monitor duties specifically delineated
17            within subsection (i) of this Section.
18            (C) Solicitation, pre-qualification, and
19        registration of bidders. The procurement administrator
20        shall disseminate information to potential bidders to
21        promote a procurement event, notify potential bidders
22        that the procurement administrator may enter into a
23        post-bid price negotiation with bidders that meet the
24        applicable benchmarks, provide supply requirements,
25        and otherwise explain the competitive procurement
26        process. In addition to such other publication as the

 

 

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1        procurement administrator determines is appropriate,
2        this information shall be posted on the Agency's and
3        the Commission's websites. The procurement
4        administrator shall also administer the
5        prequalification process, including evaluation of
6        credit worthiness, compliance with procurement rules,
7        and agreement to the standard form contract developed
8        pursuant to item (D) of this paragraph (4). The
9        procurement administrator shall then identify and
10        register bidders to participate in the procurement
11        event.
12            (D) Standard contract forms and credit terms and
13        instruments. The procurement administrator, in
14        consultation with the Agency, the Commission, and
15        other interested parties and subject to Commission
16        oversight, shall develop and provide standard contract
17        forms for the supplier contracts that meet generally
18        accepted industry practices as well as include any
19        applicable State of Illinois terms and conditions that
20        are required for contracts entered into by an agency
21        of the State of Illinois. Standard credit terms and
22        instruments that meet generally accepted industry
23        practices shall be similarly developed. Contracts for
24        new photovoltaics shall include a provision attesting
25        that the supplier will use a qualified person for the
26        installation of the device pursuant to paragraph (1)

 

 

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1        of subsection (i) of this Section. The procurement
2        administrator shall make available to the Commission
3        all written comments it receives on the contract
4        forms, credit terms, or instruments. If the
5        procurement administrator cannot reach agreement with
6        the parties as to the contract terms and conditions,
7        the procurement administrator must notify the
8        Commission of any disputed terms and the Commission
9        shall resolve the dispute. The terms of the contracts
10        shall not be subject to negotiation by winning
11        bidders, and the bidders must agree to the terms of the
12        contract in advance so that winning bids are selected
13        solely on the basis of price.
14            (E) Requests for proposals; competitive
15        procurement process. The procurement administrator
16        shall design and issue requests for proposals to
17        supply renewable energy credits in accordance with the
18        supplemental procurement plan, as approved by the
19        Commission. The requests for proposals shall set forth
20        a procedure for sealed, binding commitment bidding
21        with pay-as-bid settlement, and provision for
22        selection of bids on the basis of price, provided,
23        however, that no bid shall be accepted if it exceeds
24        the benchmark developed pursuant to item (F) of this
25        paragraph (4).
26            (F) Benchmarks. Benchmarks for each product to be

 

 

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1        procured shall be developed by the procurement
2        administrator in consultation with Commission staff,
3        the Agency, and the procurement monitor for use in
4        this supplemental procurement.
5            (G) A plan for implementing contingencies in the
6        event of supplier default, Commission rejection of
7        results, or any other cause.
8        (5) Within 2 business days after opening the sealed
9    bids, the procurement administrator shall submit a
10    confidential report to the Commission. The report shall
11    contain the results of the bidding for each of the
12    products along with the procurement administrator's
13    recommendation for the acceptance and rejection of bids
14    based on the price benchmark criteria and other factors
15    observed in the process. The procurement monitor also
16    shall submit a confidential report to the Commission
17    within 2 business days after opening the sealed bids. The
18    report shall contain the procurement monitor's assessment
19    of bidder behavior in the process as well as an assessment
20    of the procurement administrator's compliance with the
21    procurement process and rules. The Commission shall review
22    the confidential reports submitted by the procurement
23    administrator and procurement monitor and shall accept or
24    reject the recommendations of the procurement
25    administrator within 2 business days after receipt of the
26    reports.

 

 

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1        (6) Within 3 business days after the Commission
2    decision approving the results of a procurement event, the
3    Agency shall enter into binding contractual arrangements
4    with the winning suppliers using the standard form
5    contracts.
6        (7) The names of the successful bidders and the
7    average of the winning bid prices for each contract type
8    and for each contract term shall be made available to the
9    public within 2 days after the supplemental procurement
10    event. The Commission, the procurement monitor, the
11    procurement administrator, the Agency, and all
12    participants in the procurement process shall maintain the
13    confidentiality of all other supplier and bidding
14    information in a manner consistent with all applicable
15    laws, rules, regulations, and tariffs. Confidential
16    information, including the confidential reports submitted
17    by the procurement administrator and procurement monitor
18    pursuant to this Section, shall not be made publicly
19    available and shall not be discoverable by any party in
20    any proceeding, absent a compelling demonstration of need,
21    nor shall those reports be admissible in any proceeding
22    other than one for law enforcement purposes.
23        (8) The supplemental procurement provided in this
24    subsection (i) shall not be subject to the requirements
25    and limitations of subsections (c) and (d) of this
26    Section.

 

 

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1        (9) Expenses incurred in connection with the
2    procurement process held pursuant to this Section,
3    including, but not limited to, the cost of developing the
4    supplemental procurement plan, the procurement
5    administrator, procurement monitor, and the cost of the
6    retirement of renewable energy credits purchased pursuant
7    to the supplemental procurement shall be paid for from the
8    Illinois Power Agency Renewable Energy Resources Fund. The
9    Agency shall enter into an interagency agreement with the
10    Commission to reimburse the Commission for its costs
11    associated with the procurement monitor for the
12    supplemental procurement process.
13    (j) There shall be created a low-income community
14hydropower pilot project program. Under this program, persons,
15and entities including, but not limited to, electric
16utilities, shall propose pilot community hydropower projects.
17Community hydropower projects proposed under this subsection
18may exceed 2,000 kilowatts in nameplate capacity, and the
19amount paid per project under this program may not exceed
20$20,000,000. Pilot projects must result in economic benefits
21for the members of the community in which the project will be
22located. The proposed pilot project must include a partnership
23with at least one community-based organization. Approved pilot
24projects shall be competitively bid by the Agency, subject to
25fair and equitable guidelines developed by the Agency. Funding
26available under this subsection must include a project

 

 

SB1474- 53 -LRB103 29372 AMQ 55761 b

1partnership that includes community ownership for the project
2subscribers. Contracts entered into under this subsection may
3be entered into with an entity that will develop and
4administer the program or with developers and shall also
5include contracts for renewable energy credits related to the
6program. A project proposed by a utility that is implemented
7under this subsection shall not be included in the utility's
8rate base.
9(Source: P.A. 102-662, eff. 9-15-21.)
 
10    Section 10. The Public Utilities Act is amended by
11changing Section 8-512 as follows:
 
12    (220 ILCS 5/8-512)
13    Sec. 8-512. Renewable energy access plan.
14    (a) It is the policy of this State to promote
15cost-effective transmission system development that ensures
16reliability of the electric transmission system, lowers carbon
17emissions, minimizes long-term costs for consumers, and
18supports the electric policy goals of this State. The General
19Assembly finds that:
20        (1) Transmission planning, primarily for reliability
21    purposes, but also for economic and public policy reasons
22    is conducted by regional transmission organizations in
23    which transmission-owning Illinois utilities and other
24    stakeholders are members.

 

 

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1        (2) Order No. 1000 of the Federal Energy Regulatory
2    Commission requires regional transmission organizations to
3    plan for transmission system needs in light of State
4    public policies and to accept input from states during the
5    transmission system planning processes.
6        (3) The State of Illinois does not currently have a
7    comprehensive power and environmental policy planning
8    process to identify transmission infrastructure needs that
9    can serve as a vital input into the regional and
10    interregional transmission organization planning
11    processes conducted under Order No. 1000 and other laws
12    and regulations.
13        (4) This State is an electricity generation and power
14    transmission hub, and can leverage that position to invest
15    in infrastructure that enables new and existing Illinois
16    generators to meet the public policy goals of the State of
17    Illinois and of interconnected states while
18    cost-effectively supporting tens of thousands of jobs in
19    the renewable energy sector in this State.
20        (5) The nation has a need to readily access this
21    State's low-cost, clean electric power, and this State
22    also desires access to clean energy resources in other
23    states to develop and support its low-carbon economy and
24    keep electricity prices low in Illinois and interconnected
25    States.
26        (6) Existing transmission infrastructure may constrain

 

 

SB1474- 55 -LRB103 29372 AMQ 55761 b

1    the State's achievement of 100% renewable energy by 2050,
2    the accelerated adoption of electric vehicles in a just
3    and equitable way, and electrification of additional
4    sectors of the Illinois economy.
5        (7) Transmission system congestion within this State
6    and the regional transmission organizations serving this
7    State limits the ability of this State's existing and new
8    electric generation facilities that do not emit carbon
9    dioxide, including renewable energy resources and zero
10    emission facilities, to serve the public policy goals of
11    this State and other states, which constrains investment
12    in this State.
13        (8) Investment in infrastructure to support existing
14    and new electric generation facilities that do not emit
15    carbon dioxide, including renewable energy resources and
16    zero emission facilities, stimulates significant economic
17    development and job growth in this State, as well as
18    creates environmental and public health benefits in this
19    State.
20        (9) Creating a forward-looking plan for this State's
21    electric transmission infrastructure, as opposed to
22    relying on case-by-case development and repeated marginal
23    upgrades, will achieve a lower-cost system for Illinois'
24    electricity customers. A forward-looking plan can also
25    help integrate and achieve a comprehensive set of
26    objectives and multiple state, regional, and national

 

 

SB1474- 56 -LRB103 29372 AMQ 55761 b

1    policy goals.
2        (10) Alternatives to overhead electric transmission
3    lines can achieve cost-effective resolution of system
4    impacts and warrant investigation of the circumstances
5    under which those alternatives should be considered and
6    approved. The alternatives are likely to be beneficial as
7    investment in electric transmission infrastructure moves
8    forward.
9        (11) Because transmission planning is conducted
10    primarily by the regional transmission organizations, the
11    Commission should be advocating for the State's interests
12    at the regional transmission organizations to ensure that
13    such planning facilitates the State's policies and goals,
14    including overall consumer savings, power system
15    reliability, economic development, environmental
16    improvement, and carbon reduction.
17    (b) Consistent with the findings identified in subsection
18(a), the Commission shall open an investigation to develop and
19adopt a renewable energy access plan no later than December
2031, 2022. To assist and support the Commission in the
21development of the plan, the Commission shall retain the
22services of technical and policy experts with relevant fields
23of expertise, solicit technical and policy analysis from the
24public, and provide for a 120-day open public comment period
25after publication of a draft report, which shall be published
26no later than 90 days after the comment period ends. The plan

 

 

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1shall, at a minimum, do the following:
2        (1) designate renewable energy access plan zones
3    throughout this State in areas in which renewable energy
4    resources and suitable land areas are sufficient for
5    developing generating capacity from renewable energy
6    technologies;
7        (2) develop a plan to achieve transmission capacity
8    necessary to deliver the electric output from renewable
9    energy technologies in the renewable energy access plan
10    zones to customers in Illinois and other states in a
11    manner that is most beneficial and cost-effective to
12    customers;
13        (3) use this State's position as an electricity
14    generation and power transmission hub to create new
15    investment in this State's renewable energy resources;
16        (4) consider programs, policies, and electric
17    transmission projects that can be adopted within this
18    State that promote the cost-effective delivery of power
19    from renewable energy resources interconnected to the bulk
20    electric system to meet the renewable portfolio standard
21    targets under subsection (c) of Section 1-75 of the
22    Illinois Power Agency Act;
23        (5) consider proposals to improve regional
24    transmission organizations' regional and interregional
25    system planning processes, especially proposals that
26    reduce costs and emissions, create jobs, and increase

 

 

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1    State and regional power system reliability to prevent
2    high-cost outages that can endanger lives, and analyze of
3    how those proposals would improve reliability and
4    cost-effective delivery of electricity in Illinois and the
5    region;
6        (6) make findings and policy recommendations based on
7    technical and policy analysis regarding locations of
8    renewable energy access plan zones and the transmission
9    system developments needed to cost-effectively achieve the
10    public policy goals identified herein; and
11        (6.5) make findings and policy recommendations based
12    on technical and policy analysis regarding the impact of
13    converting nonpowered dams to hydropower dams relative to
14    alternative renewal energy resources; and
15        (7) present the Commission's conclusions and proposed
16    recommendations based on its analysis and use the findings
17    and policy recommendations to determine actions that the
18    Commission should take.
19    (c) No later than December 31, 2025, and every other year
20thereafter, the Commission shall open an investigation to
21develop and adopt an updated renewable energy access plan
22that, at a minimum, evaluates the implementation and
23effectiveness of the renewable energy access plan, recommends
24improvements to the renewable energy access plan, and provides
25changes to transmission capacity necessary to deliver electric
26output from the renewable energy access plan zones.

 

 

SB1474- 59 -LRB103 29372 AMQ 55761 b

1(Source: P.A. 102-662, eff. 9-15-21.)