SB1474 EnrolledLRB103 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, 1-20, and 1-75 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    "Hydropower" means any method of electricity generation or
22storage that results from the flow of water, including
23impoundment facilities, diversion facilities, and pumped
24storage facilities.
25    "Index price" means the real-time energy settlement price
26at the applicable Illinois trading hub, such as PJM-NIHUB or

 

 

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1MISO-IL, for a given settlement period.
2    "Indexed renewable energy credit" means a tradable credit
3that represents the environmental attributes of one megawatt
4hour of energy produced from a renewable energy resource, the
5price of which shall be calculated by subtracting the strike
6price offered by a new utility-scale wind project or a new
7utility-scale photovoltaic project from the index price in a
8given settlement period.
9    "Indexed renewable energy credit counterparty" has the
10same meaning as "public utility" as defined in Section 3-105
11of the Public Utilities Act.
12    "Local government" means a unit of local government as
13defined in Section 1 of Article VII of the Illinois
14Constitution.
15    "Modernized" or "retooled" means the construction, repair,
16maintenance, or significant expansion of turbines and existing
17hydropower dams.
18    "Municipality" means a city, village, or incorporated
19town.
20    "Municipal utility" means a public utility owned and
21operated by any subdivision or municipal corporation of this
22State.
23    "Nameplate capacity" means the aggregate inverter
24nameplate capacity in kilowatts AC.
25    "Person" means any natural person, firm, partnership,
26corporation, either domestic or foreign, company, association,

 

 

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1limited liability company, joint stock company, or association
2and includes any trustee, receiver, assignee, or personal
3representative thereof.
4    "Project" means the planning, bidding, and construction of
5a facility.
6    "Project labor agreement" means a pre-hire collective
7bargaining agreement that covers all terms and conditions of
8employment on a specific construction project and must include
9the following:
10        (1) provisions establishing the minimum hourly wage
11    for each class of labor organization employee;
12        (2) provisions establishing the benefits and other
13    compensation for each class of labor organization
14    employee;
15        (3) provisions establishing that no strike or disputes
16    will be engaged in by the labor organization employees;
17        (4) provisions establishing that no lockout or
18    disputes will be engaged in by the general contractor
19    building the project; and
20        (5) provisions for minorities and women, as defined
21    under the Business Enterprise for Minorities, Women, and
22    Persons with Disabilities Act, setting forth goals for
23    apprenticeship hours to be performed by minorities and
24    women and setting forth goals for total hours to be
25    performed by underrepresented minorities and women.
26    A labor organization and the general contractor building

 

 

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1the project shall have the authority to include other terms
2and conditions as they deem necessary.
3    "Public utility" has the same definition as found in
4Section 3-105 of the Public Utilities Act.
5    "Qualified combined heat and power systems" means systems
6that, either simultaneously or sequentially, produce
7electricity and useful thermal energy from a single fuel
8source. Such systems are eligible for "renewable energy
9credits" in an amount equal to its total energy output where a
10renewable fuel is consumed or in an amount equal to the net
11reduction in nonrenewable fuel consumed on a total energy
12output basis.
13    "Real property" means any interest in land together with
14all structures, fixtures, and improvements thereon, including
15lands under water and riparian rights, any easements,
16covenants, licenses, leases, rights-of-way, uses, and other
17interests, together with any liens, judgments, mortgages, or
18other claims or security interests related to real property.
19    "Renewable energy credit" means a tradable credit that
20represents the environmental attributes of one megawatt hour
21of energy produced from a renewable energy resource.
22    "Renewable energy resources" includes energy and its
23associated renewable energy credit or renewable energy credits
24from wind, solar thermal energy, photovoltaic cells and
25panels, biodiesel, anaerobic digestion, crops and untreated
26and unadulterated organic waste biomass, and hydropower that

 

 

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1does not involve new construction or significant expansion of
2hydropower dams, waste heat to power systems, or qualified
3combined heat and power systems. For purposes of this Act,
4landfill gas produced in the State is considered a renewable
5energy resource. "Renewable energy resources" does not include
6the incineration or burning of tires, garbage, general
7household, institutional, and commercial waste, industrial
8lunchroom or office waste, landscape waste, railroad
9crossties, utility poles, or construction or demolition
10debris, other than untreated and unadulterated waste wood.
11"Renewable energy resources" also includes high voltage direct
12current renewable energy credits and the associated energy
13converted to alternating current by a high voltage direct
14current converter station to the extent that: (1) the
15generator of such renewable energy resource contracted with a
16third party to transmit the energy over the high voltage
17direct current transmission facilities, and (2) the
18third-party contracting for delivery of renewable energy
19resources over the high voltage direct current transmission
20facilities have ownership rights over the unretired associated
21high voltage direct current renewable energy credit.
22    "Retail customer" has the same definition as found in
23Section 16-102 of the Public Utilities Act.
24    "Revenue bond" means any bond, note, or other evidence of
25indebtedness issued by the Authority, the principal and
26interest of which is payable solely from revenues or income

 

 

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1derived from any project or activity of the Agency.
2    "Sequester" means permanent storage of carbon dioxide by
3injecting it into a saline aquifer, a depleted gas reservoir,
4or an oil reservoir, directly or through an enhanced oil
5recovery process that may involve intermediate storage,
6regardless of whether these activities are conducted by a
7clean coal facility, a clean coal SNG facility, a clean coal
8SNG brownfield facility, or a party with which a clean coal
9facility, clean coal SNG facility, or clean coal SNG
10brownfield facility has contracted for such purposes.
11    "Service area" has the same definition as found in Section
1216-102 of the Public Utilities Act.
13    "Settlement period" means the period of time utilized by
14MISO and PJM and their successor organizations as the basis
15for settlement calculations in the real-time energy market.
16    "Sourcing agreement" means (i) in the case of an electric
17utility, an agreement between the owner of a clean coal
18facility and such electric utility, which agreement shall have
19terms and conditions meeting the requirements of paragraph (3)
20of subsection (d) of Section 1-75, (ii) in the case of an
21alternative retail electric supplier, an agreement between the
22owner of a clean coal facility and such alternative retail
23electric supplier, which agreement shall have terms and
24conditions meeting the requirements of Section 16-115(d)(5) of
25the Public Utilities Act, and (iii) in case of a gas utility,
26an agreement between the owner of a clean coal SNG brownfield

 

 

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1facility and the gas utility, which agreement shall have the
2terms and conditions meeting the requirements of subsection
3(h-1) of Section 9-220 of the Public Utilities Act.
4    "Strike price" means a contract price for energy and
5renewable energy credits from a new utility-scale wind project
6or a new utility-scale photovoltaic project.
7    "Subscriber" means a person who (i) takes delivery service
8from an electric utility, and (ii) has a subscription of no
9less than 200 watts to a community renewable generation
10project that is located in the electric utility's service
11area. No subscriber's subscriptions may total more than 40% of
12the nameplate capacity of an individual community renewable
13generation project. Entities that are affiliated by virtue of
14a common parent shall not represent multiple subscriptions
15that total more than 40% of the nameplate capacity of an
16individual community renewable generation project.
17    "Subscription" means an interest in a community renewable
18generation project expressed in kilowatts, which is sized
19primarily to offset part or all of the subscriber's
20electricity usage.
21    "Substitute natural gas" or "SNG" means a gas manufactured
22by gasification of hydrocarbon feedstock, which is
23substantially interchangeable in use and distribution with
24conventional natural gas.
25    "Total resource cost test" or "TRC test" means a standard
26that is met if, for an investment in energy efficiency or

 

 

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1demand-response measures, the benefit-cost ratio is greater
2than one. The benefit-cost ratio is the ratio of the net
3present value of the total benefits of the program to the net
4present value of the total costs as calculated over the
5lifetime of the measures. A total resource cost test compares
6the sum of avoided electric utility costs, representing the
7benefits that accrue to the system and the participant in the
8delivery of those efficiency measures and including avoided
9costs associated with reduced use of natural gas or other
10fuels, avoided costs associated with reduced water
11consumption, and avoided costs associated with reduced
12operation and maintenance costs, as well as other quantifiable
13societal benefits, to the sum of all incremental costs of
14end-use measures that are implemented due to the program
15(including both utility and participant contributions), plus
16costs to administer, deliver, and evaluate each demand-side
17program, to quantify the net savings obtained by substituting
18the demand-side program for supply resources. In calculating
19avoided costs of power and energy that an electric utility
20would otherwise have had to acquire, reasonable estimates
21shall be included of financial costs likely to be imposed by
22future regulations and legislation on emissions of greenhouse
23gases. In discounting future societal costs and benefits for
24the purpose of calculating net present values, a societal
25discount rate based on actual, long-term Treasury bond yields
26should be used. Notwithstanding anything to the contrary, the

 

 

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1TRC test shall not include or take into account a calculation
2of market price suppression effects or demand reduction
3induced price effects.
4    "Utility-scale solar project" means an electric generating
5facility that:
6        (1) generates electricity using photovoltaic cells;
7    and
8        (2) has a nameplate capacity that is greater than
9    5,000 kilowatts.
10    "Utility-scale wind project" means an electric generating
11facility that:
12        (1) generates electricity using wind; and
13        (2) has a nameplate capacity that is greater than
14    5,000 kilowatts.
15    "Waste Heat to Power Systems" means systems that capture
16and generate electricity from energy that would otherwise be
17lost to the atmosphere without the use of additional fuel.
18    "Zero emission credit" means a tradable credit that
19represents the environmental attributes of one megawatt hour
20of energy produced from a zero emission facility.
21    "Zero emission facility" means a facility that: (1) is
22fueled by nuclear power; and (2) is interconnected with PJM
23Interconnection, LLC or the Midcontinent Independent System
24Operator, Inc., or their successors.
25(Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
 

 

 

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1    (20 ILCS 3855/1-20)
2    Sec. 1-20. General powers and duties of the Agency.
3    (a) The Agency is authorized to do each of the following:
4        (1) Develop electricity procurement plans to ensure
5    adequate, reliable, affordable, efficient, and
6    environmentally sustainable electric service at the lowest
7    total cost over time, taking into account any benefits of
8    price stability, for electric utilities that on December
9    31, 2005 provided electric service to at least 100,000
10    customers in Illinois and for small multi-jurisdictional
11    electric utilities that (A) on December 31, 2005 served
12    less than 100,000 customers in Illinois and (B) request a
13    procurement plan for their Illinois jurisdictional load.
14    Except as provided in paragraph (1.5) of this subsection
15    (a), the electricity procurement plans shall be updated on
16    an annual basis and shall include electricity generated
17    from renewable resources sufficient to achieve the
18    standards specified in this Act. Beginning with the
19    delivery year commencing June 1, 2017, develop procurement
20    plans to include zero emission credits generated from zero
21    emission facilities sufficient to achieve the standards
22    specified in this Act. Beginning with the delivery year
23    commencing on June 1, 2022, the Agency is authorized to
24    develop carbon mitigation credit procurement plans to
25    include carbon mitigation credits generated from
26    carbon-free energy resources sufficient to achieve the

 

 

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1    standards specified in this Act.
2        (1.5) Develop a long-term renewable resources
3    procurement plan in accordance with subsection (c) of
4    Section 1-75 of this Act for renewable energy credits in
5    amounts sufficient to achieve the standards specified in
6    this Act for delivery years commencing June 1, 2017 and
7    for the programs and renewable energy credits specified in
8    Section 1-56 of this Act. Electricity procurement plans
9    for delivery years commencing after May 31, 2017, shall
10    not include procurement of renewable energy resources.
11        (2) Conduct competitive procurement processes to
12    procure the supply resources identified in the electricity
13    procurement plan, pursuant to Section 16-111.5 of the
14    Public Utilities Act, and, for the delivery year
15    commencing June 1, 2017, conduct procurement processes to
16    procure zero emission credits from zero emission
17    facilities, under subsection (d-5) of Section 1-75 of this
18    Act. For the delivery year commencing June 1, 2022, the
19    Agency is authorized to conduct procurement processes to
20    procure carbon mitigation credits from carbon-free energy
21    resources, under subsection (d-10) of Section 1-75 of this
22    Act.
23        (2.5) Beginning with the procurement for the 2017
24    delivery year, conduct competitive procurement processes
25    and implement programs to procure renewable energy credits
26    identified in the long-term renewable resources

 

 

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1    procurement plan developed and approved under subsection
2    (c) of Section 1-75 of this Act and Section 16-111.5 of the
3    Public Utilities Act.
4        (2.10) Oversee the procurement by electric utilities
5    that served more than 300,000 customers in this State as
6    of January 1, 2019 of renewable energy credits from new
7    renewable energy facilities to be installed, along with
8    energy storage facilities, at or adjacent to the sites of
9    electric generating facilities that burned coal as their
10    primary fuel source as of January 1, 2016 in accordance
11    with subsection (c-5) of Section 1-75 of this Act.
12        (2.15) Oversee the procurement by electric utilities
13    of renewable energy credits from newly modernized or
14    retooled hydropower dams or dams that have been converted
15    to support hydropower generation.
16        (3) Develop electric generation and co-generation
17    facilities that use indigenous coal or renewable
18    resources, or both, financed with bonds issued by the
19    Illinois Finance Authority.
20        (4) Supply electricity from the Agency's facilities at
21    cost to one or more of the following: municipal electric
22    systems, governmental aggregators, or rural electric
23    cooperatives in Illinois.
24    (b) Except as otherwise limited by this Act, the Agency
25has all of the powers necessary or convenient to carry out the
26purposes and provisions of this Act, including without

 

 

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1limitation, each of the following:
2        (1) To have a corporate seal, and to alter that seal at
3    pleasure, and to use it by causing it or a facsimile to be
4    affixed or impressed or reproduced in any other manner.
5        (2) To use the services of the Illinois Finance
6    Authority necessary to carry out the Agency's purposes.
7        (3) To negotiate and enter into loan agreements and
8    other agreements with the Illinois Finance Authority.
9        (4) To obtain and employ personnel and hire
10    consultants that are necessary to fulfill the Agency's
11    purposes, and to make expenditures for that purpose within
12    the appropriations for that purpose.
13        (5) To purchase, receive, take by grant, gift, devise,
14    bequest, or otherwise, lease, or otherwise acquire, own,
15    hold, improve, employ, use, and otherwise deal in and
16    with, real or personal property whether tangible or
17    intangible, or any interest therein, within the State.
18        (6) To acquire real or personal property, whether
19    tangible or intangible, including without limitation
20    property rights, interests in property, franchises,
21    obligations, contracts, and debt and equity securities,
22    and to do so by the exercise of the power of eminent domain
23    in accordance with Section 1-21; except that any real
24    property acquired by the exercise of the power of eminent
25    domain must be located within the State.
26        (7) To sell, convey, lease, exchange, transfer,

 

 

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1    abandon, or otherwise dispose of, or mortgage, pledge, or
2    create a security interest in, any of its assets,
3    properties, or any interest therein, wherever situated.
4        (8) To purchase, take, receive, subscribe for, or
5    otherwise acquire, hold, make a tender offer for, vote,
6    employ, sell, lend, lease, exchange, transfer, or
7    otherwise dispose of, mortgage, pledge, or grant a
8    security interest in, use, and otherwise deal in and with,
9    bonds and other obligations, shares, or other securities
10    (or interests therein) issued by others, whether engaged
11    in a similar or different business or activity.
12        (9) To make and execute agreements, contracts, and
13    other instruments necessary or convenient in the exercise
14    of the powers and functions of the Agency under this Act,
15    including contracts with any person, including personal
16    service contracts, or with any local government, State
17    agency, or other entity; and all State agencies and all
18    local governments are authorized to enter into and do all
19    things necessary to perform any such agreement, contract,
20    or other instrument with the Agency. No such agreement,
21    contract, or other instrument shall exceed 40 years.
22        (10) To lend money, invest and reinvest its funds in
23    accordance with the Public Funds Investment Act, and take
24    and hold real and personal property as security for the
25    payment of funds loaned or invested.
26        (11) To borrow money at such rate or rates of interest

 

 

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1    as the Agency may determine, issue its notes, bonds, or
2    other obligations to evidence that indebtedness, and
3    secure any of its obligations by mortgage or pledge of its
4    real or personal property, machinery, equipment,
5    structures, fixtures, inventories, revenues, grants, and
6    other funds as provided or any interest therein, wherever
7    situated.
8        (12) To enter into agreements with the Illinois
9    Finance Authority to issue bonds whether or not the income
10    therefrom is exempt from federal taxation.
11        (13) To procure insurance against any loss in
12    connection with its properties or operations in such
13    amount or amounts and from such insurers, including the
14    federal government, as it may deem necessary or desirable,
15    and to pay any premiums therefor.
16        (14) To negotiate and enter into agreements with
17    trustees or receivers appointed by United States
18    bankruptcy courts or federal district courts or in other
19    proceedings involving adjustment of debts and authorize
20    proceedings involving adjustment of debts and authorize
21    legal counsel for the Agency to appear in any such
22    proceedings.
23        (15) To file a petition under Chapter 9 of Title 11 of
24    the United States Bankruptcy Code or take other similar
25    action for the adjustment of its debts.
26        (16) To enter into management agreements for the

 

 

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1    operation of any of the property or facilities owned by
2    the Agency.
3        (17) To enter into an agreement to transfer and to
4    transfer any land, facilities, fixtures, or equipment of
5    the Agency to one or more municipal electric systems,
6    governmental aggregators, or rural electric agencies or
7    cooperatives, for such consideration and upon such terms
8    as the Agency may determine to be in the best interest of
9    the residents of Illinois.
10        (18) To enter upon any lands and within any building
11    whenever in its judgment it may be necessary for the
12    purpose of making surveys and examinations to accomplish
13    any purpose authorized by this Act.
14        (19) To maintain an office or offices at such place or
15    places in the State as it may determine.
16        (20) To request information, and to make any inquiry,
17    investigation, survey, or study that the Agency may deem
18    necessary to enable it effectively to carry out the
19    provisions of this Act.
20        (21) To accept and expend appropriations.
21        (22) To engage in any activity or operation that is
22    incidental to and in furtherance of efficient operation to
23    accomplish the Agency's purposes, including hiring
24    employees that the Director deems essential for the
25    operations of the Agency.
26        (23) To adopt, revise, amend, and repeal rules with

 

 

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1    respect to its operations, properties, and facilities as
2    may be necessary or convenient to carry out the purposes
3    of this Act, subject to the provisions of the Illinois
4    Administrative Procedure Act and Sections 1-22 and 1-35 of
5    this Act.
6        (24) To establish and collect charges and fees as
7    described in this Act.
8        (25) To conduct competitive gasification feedstock
9    procurement processes to procure the feedstocks for the
10    clean coal SNG brownfield facility in accordance with the
11    requirements of Section 1-78 of this Act.
12        (26) To review, revise, and approve sourcing
13    agreements and mediate and resolve disputes between gas
14    utilities and the clean coal SNG brownfield facility
15    pursuant to subsection (h-1) of Section 9-220 of the
16    Public Utilities Act.
17        (27) To request, review and accept proposals, execute
18    contracts, purchase renewable energy credits and otherwise
19    dedicate funds from the Illinois Power Agency Renewable
20    Energy Resources Fund to create and carry out the
21    objectives of the Illinois Solar for All Program in
22    accordance with Section 1-56 of this Act.
23        (28) To ensure Illinois residents and business benefit
24    from programs administered by the Agency and are properly
25    protected from any deceptive or misleading marketing
26    practices by participants in the Agency's programs and

 

 

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1    procurements.
2    (c) In conducting the procurement of electricity or other
3products, beginning January 1, 2022, the Agency shall not
4procure any products or services from persons or organizations
5that are in violation of the Displaced Energy Workers Bill of
6Rights, as provided under the Energy Community Reinvestment
7Act at the time of the procurement event or fail to comply the
8labor standards established in subparagraph (Q) of paragraph
9(1) of subsection (c) of Section 1-75.
10(Source: P.A. 102-662, eff. 9-15-21.)
 
11    (20 ILCS 3855/1-75)
12    Sec. 1-75. Planning and Procurement Bureau. The Planning
13and Procurement Bureau has the following duties and
14responsibilities:
15    (a) The Planning and Procurement Bureau shall each year,
16beginning in 2008, develop procurement plans and conduct
17competitive procurement processes in accordance with the
18requirements of Section 16-111.5 of the Public Utilities Act
19for the eligible retail customers of electric utilities that
20on December 31, 2005 provided electric service to at least
21100,000 customers in Illinois. Beginning with the delivery
22year commencing on June 1, 2017, the Planning and Procurement
23Bureau shall develop plans and processes for the procurement
24of zero emission credits from zero emission facilities in
25accordance with the requirements of subsection (d-5) of this

 

 

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1Section. Beginning on the effective date of this amendatory
2Act of the 102nd General Assembly, the Planning and
3Procurement Bureau shall develop plans and processes for the
4procurement of carbon mitigation credits from carbon-free
5energy resources in accordance with the requirements of
6subsection (d-10) of this Section. The Planning and
7Procurement Bureau shall also develop procurement plans and
8conduct competitive procurement processes in accordance with
9the requirements of Section 16-111.5 of the Public Utilities
10Act for the eligible retail customers of small
11multi-jurisdictional electric utilities that (i) on December
1231, 2005 served less than 100,000 customers in Illinois and
13(ii) request a procurement plan for their Illinois
14jurisdictional load. This Section shall not apply to a small
15multi-jurisdictional utility until such time as a small
16multi-jurisdictional utility requests the Agency to prepare a
17procurement plan for their Illinois jurisdictional load. For
18the purposes of this Section, the term "eligible retail
19customers" has the same definition as found in Section
2016-111.5(a) of the Public Utilities Act.
21    Beginning with the plan or plans to be implemented in the
222017 delivery year, the Agency shall no longer include the
23procurement of renewable energy resources in the annual
24procurement plans required by this subsection (a), except as
25provided in subsection (q) of Section 16-111.5 of the Public
26Utilities Act, and shall instead develop a long-term renewable

 

 

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

 

 

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1            (D) expertise in wholesale electricity market
2        rules, including those established by the Federal
3        Energy Regulatory Commission and regional transmission
4        organizations;
5            (E) expertise in credit protocols and familiarity
6        with contract protocols;
7            (F) adequate resources to perform and fulfill the
8        required functions and responsibilities; and
9            (G) the absence of a conflict of interest and
10        inappropriate bias for or against potential bidders or
11        the affected electric utilities.
12        (2) The Agency shall each year, as needed, issue a
13    request for qualifications for a procurement administrator
14    to conduct the competitive procurement processes in
15    accordance with Section 16-111.5 of the Public Utilities
16    Act. In order to qualify an expert or expert consulting
17    firm must have:
18            (A) direct previous experience administering a
19        large-scale competitive procurement process;
20            (B) an advanced degree in economics, mathematics,
21        engineering, or a related area of study;
22            (C) 10 years of experience in the electricity
23        sector, including risk management experience;
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 and contract protocols;
3            (F) adequate resources to perform and fulfill the
4        required functions and responsibilities; and
5            (G) the absence of a conflict of interest and
6        inappropriate bias for or against potential bidders or
7        the affected electric utilities.
8        (3) The Agency shall provide affected utilities and
9    other interested parties with the lists of qualified
10    experts or expert consulting firms identified through the
11    request for qualifications processes that are under
12    consideration to develop the procurement plans and to
13    serve as the procurement administrator. The Agency shall
14    also provide each qualified expert's or expert consulting
15    firm's response to the request for qualifications. All
16    information provided under this subparagraph shall also be
17    provided to the Commission. The Agency may provide by rule
18    for fees associated with supplying the information to
19    utilities and other interested parties. These parties
20    shall, within 5 business days, notify the Agency in
21    writing if they object to any experts or expert consulting
22    firms on the lists. Objections shall be based on:
23            (A) failure to satisfy qualification criteria;
24            (B) identification of a conflict of interest; or
25            (C) evidence of inappropriate bias for or against
26        potential bidders or the affected utilities.

 

 

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

 

 

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1    Commission approval.
2    (b) The experts or expert consulting firms retained by the
3Agency shall, as appropriate, prepare procurement plans, and
4conduct a competitive procurement process as prescribed in
5Section 16-111.5 of the Public Utilities Act, to ensure
6adequate, reliable, affordable, efficient, and environmentally
7sustainable electric service at the lowest total cost over
8time, taking into account any benefits of price stability, for
9eligible retail customers of electric utilities that on
10December 31, 2005 provided electric service to at least
11100,000 customers in the State of Illinois, and for eligible
12Illinois retail customers of small multi-jurisdictional
13electric utilities that (i) on December 31, 2005 served less
14than 100,000 customers in Illinois and (ii) request a
15procurement plan for their Illinois jurisdictional load.
16    (c) Renewable portfolio standard.
17        (1)(A) The Agency shall develop a long-term renewable
18    resources procurement plan that shall include procurement
19    programs and competitive procurement events necessary to
20    meet the goals set forth in this subsection (c). The
21    initial long-term renewable resources procurement plan
22    shall be released for comment no later than 160 days after
23    June 1, 2017 (the effective date of Public Act 99-906).
24    The Agency shall review, and may revise on an expedited
25    basis, the long-term renewable resources procurement plan
26    at least every 2 years, which shall be conducted in

 

 

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1    conjunction with the procurement plan under Section
2    16-111.5 of the Public Utilities Act to the extent
3    practicable to minimize administrative expense. No later
4    than 120 days after the effective date of this amendatory
5    Act of the 103rd 102nd General Assembly, the Agency shall
6    release for comment a revision to the long-term renewable
7    resources procurement plan, updating elements of the most
8    recently approved plan as needed to comply with this
9    amendatory Act of the 103rd 102nd General Assembly, and
10    any long-term renewable resources procurement plan update
11    published by the Agency but not yet approved by the
12    Illinois Commerce Commission shall be withdrawn. The
13    long-term renewable resources procurement plans shall be
14    subject to review and approval by the Commission under
15    Section 16-111.5 of the Public Utilities Act.
16        (B) Subject to subparagraph (F) of this paragraph (1),
17    the long-term renewable resources procurement plan shall
18    attempt to meet the goals for procurement of renewable
19    energy credits at levels of at least the following overall
20    percentages: 13% by the 2017 delivery year; increasing by
21    at least 1.5% each delivery year thereafter to at least
22    25% by the 2025 delivery year; increasing by at least 3%
23    each delivery year thereafter to at least 40% by the 2030
24    delivery year, and continuing at no less than 40% for each
25    delivery year thereafter. The Agency shall attempt to
26    procure 50% by delivery year 2040. The Agency shall

 

 

SB1474 Enrolled- 36 -LRB103 29372 AMQ 55761 b

1    determine the annual increase between delivery year 2030
2    and delivery year 2040, if any, taking into account energy
3    demand, other energy resources, and other public policy
4    goals. In the event of a conflict between these goals and
5    the new wind, and new photovoltaic, and hydropower
6    procurement requirements described in items (i) through
7    (iii) of subparagraph (C) of this paragraph (1), the
8    long-term plan shall prioritize compliance with the new
9    wind, and new photovoltaic, and hydropower procurement
10    requirements described in items (i) through (iii) of
11    subparagraph (C) of this paragraph (1) over the annual
12    percentage targets described in this subparagraph (B). The
13    Agency shall not comply with the annual percentage targets
14    described in this subparagraph (B) by procuring renewable
15    energy credits that are unlikely to lead to the
16    development of new renewable resources or new, modernized,
17    or retooled hydropower facilities.
18        For the delivery year beginning June 1, 2017, the
19    procurement plan shall attempt to include, subject to the
20    prioritization outlined in this subparagraph (B),
21    cost-effective renewable energy resources equal to at
22    least 13% of each utility's load for eligible retail
23    customers and 13% of the applicable portion of each
24    utility's load for retail customers who are not eligible
25    retail customers, which applicable portion shall equal 50%
26    of the utility's load for retail customers who are not

 

 

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1    eligible retail customers on February 28, 2017.
2        For the delivery year beginning June 1, 2018, the
3    procurement plan shall attempt to include, subject to the
4    prioritization outlined in this subparagraph (B),
5    cost-effective renewable energy resources equal to at
6    least 14.5% of each utility's load for eligible retail
7    customers and 14.5% of the applicable portion of each
8    utility's load for retail customers who are not eligible
9    retail customers, which applicable portion shall equal 75%
10    of the utility's load for retail customers who are not
11    eligible retail customers on February 28, 2017.
12        For the delivery year beginning June 1, 2019, and for
13    each year thereafter, the procurement plans shall attempt
14    to include, subject to the prioritization outlined in this
15    subparagraph (B), cost-effective renewable energy
16    resources equal to a minimum percentage of each utility's
17    load for all retail customers as follows: 16% by June 1,
18    2019; increasing by 1.5% each year thereafter to 25% by
19    June 1, 2025; and 25% by June 1, 2026; increasing by at
20    least 3% each delivery year thereafter to at least 40% by
21    the 2030 delivery year, and continuing at no less than 40%
22    for each delivery year thereafter. The Agency shall
23    attempt to procure 50% by delivery year 2040. The Agency
24    shall determine the annual increase between delivery year
25    2030 and delivery year 2040, if any, taking into account
26    energy demand, other energy resources, and other public

 

 

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

 

 

SB1474 Enrolled- 39 -LRB103 29372 AMQ 55761 b

1        least 50% from solar photovoltaic projects using the
2        program outlined in subparagraph (K) of this paragraph
3        (1) from distributed renewable energy generation
4        devices or community renewable generation projects; at
5        least 47% from utility-scale solar projects; at least
6        3% from brownfield site photovoltaic projects that are
7        not community renewable generation projects.
8            In developing the long-term renewable resources
9        procurement plan, the Agency shall consider other
10        approaches, in addition to competitive procurements,
11        that can be used to procure renewable energy credits
12        from brownfield site photovoltaic projects and thereby
13        help return blighted or contaminated land to
14        productive use while enhancing public health and the
15        well-being of Illinois residents, including those in
16        environmental justice communities, as defined using
17        existing methodologies and findings used by the Agency
18        and its Administrator in its Illinois Solar for All
19        Program. The Agency shall also consider other
20        approaches, in addition to competitive procurements,
21        to procure renewable energy credits from new and
22        existing hydropower facilities to support the
23        development and maintenance of these facilities. The
24        Agency shall explore options to convert existing dams
25        but shall not consider approaches to develop new dams
26        where they do not already exist.

 

 

SB1474 Enrolled- 40 -LRB103 29372 AMQ 55761 b

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

 

 

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1        contracts described in this subparagraph (C) for
2        delivery year 2021 and thereafter.
3        (D) Renewable energy credits shall be cost effective.
4    For purposes of this subsection (c), "cost effective"
5    means that the costs of procuring renewable energy
6    resources do not cause the limit stated in subparagraph
7    (E) of this paragraph (1) to be exceeded and, for
8    renewable energy credits procured through a competitive
9    procurement event, do not exceed benchmarks based on
10    market prices for like products in the region. For
11    purposes of this subsection (c), "like products" means
12    contracts for renewable energy credits from the same or
13    substantially similar technology, same or substantially
14    similar vintage (new or existing), the same or
15    substantially similar quantity, and the same or
16    substantially similar contract length and structure.
17    Benchmarks shall reflect development, financing, or
18    related costs resulting from requirements imposed through
19    other provisions of State law, including, but not limited
20    to, requirements in subparagraphs (P) and (Q) of this
21    paragraph (1) and the Renewable Energy Facilities
22    Agricultural Impact Mitigation Act. Confidential
23    benchmarks shall be developed by the procurement
24    administrator, in consultation with the Commission staff,
25    Agency staff, and the procurement monitor and shall be
26    subject to Commission review and approval. If price

 

 

SB1474 Enrolled- 42 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 43 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 44 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 45 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 46 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 47 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 48 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 49 -LRB103 29372 AMQ 55761 b

1            annual capacity for the category described in item
2            (ii) of subparagraph (K) of this paragraph (1).
3            The first block of annual capacity for item (ii)
4            shall be for at least 75 megawatts of total
5            nameplate capacity.
6                    (A) The price of the renewable energy
7                credit for any project on a waitlist for this
8                category before the opening of this block
9                shall be 4% less than the price of the last
10                open block in this category. Projects on the
11                waitlist shall be awarded contracts first in
12                the order in which they appear on the
13                waitlist. Any projects that are less than or
14                equal to 25 kilowatts in size on the waitlist
15                for this capacity shall be moved to the
16                waitlist for paragraph (1) of this item (iv).
17                Notwithstanding anything to the contrary,
18                projects that were on the waitlist prior to
19                opening of this block shall not be required to
20                be in compliance with the requirements of
21                subparagraph (Q) of this paragraph (1) of this
22                subsection (c). Notwithstanding anything to
23                the contrary, for those renewable energy
24                credits procured from projects that were on
25                the waitlist for this category before the
26                opening of this block 20% of the renewable

 

 

SB1474 Enrolled- 50 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 51 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 52 -LRB103 29372 AMQ 55761 b

1                Renewable Resources Procurement Plan, with 70%
2                of capacity allocated to projects on the Group
3                B waitlist and 30% of capacity allocated to
4                projects on the Group A waitlist.
5                    (B) Contract awards for waitlisted
6                projects shall be allocated proportionate to
7                the total nameplate capacity amount across
8                both ordinal waitlists associated with that
9                applicant firm or its affiliates, subject to
10                the following conditions.
11                        (i) Each applicant firm having a
12                    waitlisted project eligible for selection
13                    shall receive no less than 500 kilowatts
14                    in awarded capacity across all groups, and
15                    no approved vendor may receive more than
16                    20% of each Group's waitlist allocation.
17                        (ii) Each applicant firm, upon
18                    receiving an award of program capacity
19                    proportionate to its waitlisted capacity,
20                    may then determine which waitlisted
21                    projects it chooses to be selected for a
22                    contract award up to that capacity amount.
23                        (iii) Assuming all other program
24                    requirements are met, applicant firms may
25                    adjust the nameplate capacity of applicant
26                    projects without losing waitlist

 

 

SB1474 Enrolled- 53 -LRB103 29372 AMQ 55761 b

1                    eligibility, so long as no project is
2                    greater than 2,000 kilowatts in size.
3                        (iv) Assuming all other program
4                    requirements are met, applicant firms may
5                    adjust the expected production associated
6                    with applicant projects, subject to
7                    verification by the Program Administrator.
8                    (C) After a review of affiliate
9                information and the current ordinal waitlists,
10                the Agency shall announce the nameplate
11                capacity award amounts associated with
12                applicant firms no later than 90 days after
13                the effective date of this amendatory Act of
14                the 102nd General Assembly.
15                    (D) Applicant firms shall submit their
16                portfolio of projects used to satisfy those
17                contract awards no less than 90 days after the
18                Agency's announcement. The total nameplate
19                capacity of all projects used to satisfy that
20                portfolio shall be no greater than the
21                Agency's nameplate capacity award amount
22                associated with that applicant firm. An
23                applicant firm may decline, in whole or in
24                part, its nameplate capacity award without
25                penalty, with such unmet capacity rolled over
26                to the next block opening for project

 

 

SB1474 Enrolled- 54 -LRB103 29372 AMQ 55761 b

1                selection under item (iii) of subparagraph (K)
2                of this subsection (c). Any projects not
3                included in an applicant firm's portfolio may
4                reapply without prejudice upon the next block
5                reopening for project selection under item
6                (iii) of subparagraph (K) of this subsection
7                (c).
8                    (E) The renewable energy credit delivery
9                contract shall be subject to the contract and
10                payment terms outlined in item (iv) of
11                subparagraph (L) of this subsection (c).
12                Contract instruments used for this
13                subparagraph shall contain the following
14                terms:
15                        (i) Renewable energy credit prices
16                    shall be fixed, without further adjustment
17                    under any other provision of this Act or
18                    for any other reason, at 10% lower than
19                    prices applicable to the last open block
20                    for this category, inclusive of any adders
21                    available for achieving a minimum of 50%
22                    of subscribers to the project's nameplate
23                    capacity being residential or small
24                    commercial customers with subscriptions of
25                    below 25 kilowatts in size;
26                        (ii) A requirement that a minimum of

 

 

SB1474 Enrolled- 55 -LRB103 29372 AMQ 55761 b

1                    50% of subscribers to the project's
2                    nameplate capacity be residential or small
3                    commercial customers with subscriptions of
4                    below 25 kilowatts in size;
5                        (iii) Permission for the ability of a
6                    contract holder to substitute projects
7                    with other waitlisted projects without
8                    penalty should a project receive a
9                    non-binding estimate of costs to construct
10                    the interconnection facilities and any
11                    required distribution upgrades associated
12                    with that project of greater than 30 cents
13                    per watt AC of that project's nameplate
14                    capacity. In developing the applicable
15                    contract instrument, the Agency may
16                    consider whether other circumstances
17                    outside of the control of the applicant
18                    firm should also warrant project
19                    substitution rights.
20                    The Agency shall publish a finalized
21                updated renewable energy credit delivery
22                contract developed consistent with these terms
23                and conditions no less than 30 days before
24                applicant firms must submit their portfolio of
25                projects pursuant to item (D).
26                    (F) To be eligible for an award, the

 

 

SB1474 Enrolled- 56 -LRB103 29372 AMQ 55761 b

1                applicant firm shall certify that not less
2                than prevailing wage, as determined pursuant
3                to the Illinois Prevailing Wage Act, was or
4                will be paid to employees who are engaged in
5                construction activities associated with a
6                selected project.
7                (4) The Agency shall open the first block of
8            annual capacity for the category described in item
9            (iv) of subparagraph (K) of this paragraph (1).
10            The first block of annual capacity for item (iv)
11            shall be for at least 50 megawatts of total
12            nameplate capacity. Renewable energy credit prices
13            shall be fixed, without further adjustment under
14            any other provision of this Act or for any other
15            reason, at the price in the last open block in the
16            category described in item (ii) of subparagraph
17            (K) of this paragraph (1). Pricing for future
18            blocks of annual capacity for this category may be
19            adjusted in the Agency's second revision to its
20            Long-Term Renewable Resources Procurement Plan.
21            Projects in this category shall be subject to the
22            contract terms outlined in item (iv) of
23            subparagraph (L) of this paragraph (1).
24                (5) The Agency shall open the equivalent of 2
25            years of annual capacity for the category
26            described in item (v) of subparagraph (K) of this

 

 

SB1474 Enrolled- 57 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 58 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 59 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 60 -LRB103 29372 AMQ 55761 b

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

 

 

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

 

 

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

 

 

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1            The informational filing shall identify each
2        facility that was eligible to satisfy the alternative
3        retail electric supplier's obligations under Section
4        16-115D of the Public Utilities Act as described in
5        this item (i).
6            (ii) For a given delivery year, the alternative
7        retail electric supplier may elect to supply its
8        retail customers with renewable energy credits from
9        the facility or facilities described in item (i) of
10        this subparagraph (H) that continue to be owned by the
11        alternative retail electric supplier.
12            (iii) The alternative retail electric supplier
13        shall notify the Agency and the applicable utility, no
14        later than February 28 of the year preceding the
15        applicable delivery year or 15 days after June 1, 2017
16        (the effective date of Public Act 99-906), whichever
17        is later, of its election under item (ii) of this
18        subparagraph (H) to supply renewable energy credits to
19        retail customers of the utility. Such election shall
20        identify the amount of renewable energy credits to be
21        supplied by the alternative retail electric supplier
22        to the utility's retail customers and the source of
23        the renewable energy credits identified in the
24        informational filing as described in item (i) of this
25        subparagraph (H), subject to the following
26        limitations:

 

 

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1                For the delivery year beginning June 1, 2018,
2            the maximum amount of renewable energy credits to
3            be supplied by an alternative retail electric
4            supplier under this subparagraph (H) shall be 68%
5            multiplied by 25% multiplied by 14.5% multiplied
6            by the amount of metered electricity
7            (megawatt-hours) delivered by the alternative
8            retail electric supplier to Illinois retail
9            customers during the delivery year ending May 31,
10            2016.
11                For delivery years beginning June 1, 2019 and
12            each year thereafter, the maximum amount of
13            renewable energy credits to be supplied by an
14            alternative retail electric supplier under this
15            subparagraph (H) shall be 68% multiplied by 50%
16            multiplied by 16% multiplied by the amount of
17            metered electricity (megawatt-hours) delivered by
18            the alternative retail electric supplier to
19            Illinois retail customers during the delivery year
20            ending May 31, 2016, provided that the 16% value
21            shall increase by 1.5% each delivery year
22            thereafter to 25% by the delivery year beginning
23            June 1, 2025, and thereafter the 25% value shall
24            apply to each delivery year.
25            For each delivery year, the total amount of
26        renewable energy credits supplied by all alternative

 

 

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

 

 

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1        delivery year thereafter to 25% by the delivery year
2        beginning June 1, 2025, and thereafter the 25% value
3        shall apply to each delivery year.
4            On or before April 1 of each year, the Agency shall
5        annually publish a report on its website that
6        identifies the aggregate amount of renewable energy
7        credits supplied by alternative retail electric
8        suppliers under this subparagraph (H).
9        (I) The Agency shall design its long-term renewable
10    energy procurement plan to maximize the State's interest
11    in the health, safety, and welfare of its residents,
12    including but not limited to minimizing sulfur dioxide,
13    nitrogen oxide, particulate matter and other pollution
14    that adversely affects public health in this State,
15    increasing fuel and resource diversity in this State,
16    enhancing the reliability and resiliency of the
17    electricity distribution system in this State, meeting
18    goals to limit carbon dioxide emissions under federal or
19    State law, and contributing to a cleaner and healthier
20    environment for the citizens of this State. In order to
21    further these legislative purposes, renewable energy
22    credits shall be eligible to be counted toward the
23    renewable energy requirements of this subsection (c) if
24    they are generated from facilities located in this State.
25    The Agency may qualify renewable energy credits from
26    facilities located in states adjacent to Illinois or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1474 Enrolled- 72 -LRB103 29372 AMQ 55761 b

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

 

 

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1            projects, as defined in the Agency's first revised
2            long-term renewable resources procurement plan
3            approved by the Commission on February 18, 2020,
4            such that the aggregate nameplate capacity exceeds
5            5,000 kilowatts; and
6                (4) projects greater than 2 MW may not apply
7            until after the approval of the Agency's revised
8            Long-Term Renewable Resources Procurement Plan
9            after the effective date of this amendatory Act of
10            the 102nd General Assembly.
11            (iv) At least 15% from distributed renewable
12        generation devices or photovoltaic community renewable
13        generation projects installed at public schools. The
14        Agency may create subcategories within this category
15        to account for the differences between project size or
16        location. Projects located within environmental
17        justice communities or within Organizational Units
18        that fall within Tier 1 or Tier 2 shall be given
19        priority. Each of the Agency's periodic updates to its
20        long-term renewable resources procurement plan to
21        incorporate the procurement described in this
22        subparagraph (iv) shall also include the proposed
23        quantities or blocks, pricing, and contract terms
24        applicable to the procurement as indicated herein. In
25        each such update and procurement, the Agency shall set
26        the renewable energy credit price and establish

 

 

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

 

 

SB1474 Enrolled- 75 -LRB103 29372 AMQ 55761 b

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

 

 

SB1474 Enrolled- 76 -LRB103 29372 AMQ 55761 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    "transferable" means that a subscriber may assign or sell
2    subscriptions to another person within the same utility
3    service territory.
4        Through the development of its long-term renewable
5    resources procurement plan, the Agency may consider
6    whether community renewable generation projects utilizing
7    technologies other than photovoltaics should be supported
8    through State-administered incentive funding, and may
9    issue requests for information to gauge market demand.
10        Electric utilities shall provide a monetary credit to
11    a subscriber's subsequent bill for service for the
12    proportional output of a community renewable generation
13    project attributable to that subscriber as specified in
14    Section 16-107.5 of the Public Utilities Act.
15        The Agency shall purchase renewable energy credits
16    from subscribed shares of photovoltaic community renewable
17    generation projects through the Adjustable Block program
18    described in subparagraph (K) of this paragraph (1) or
19    through the Illinois Solar for All Program described in
20    Section 1-56 of this Act. The electric utility shall
21    purchase any unsubscribed energy from community renewable
22    generation projects that are Qualifying Facilities ("QF")
23    under the electric utility's tariff for purchasing the
24    output from QFs under Public Utilities Regulatory Policies
25    Act of 1978.
26        The owners of and any subscribers to a community

 

 

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

 

 

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1    1, 2027, and June 1, 2030 and additional $10,000,000 shall
2    be provided to the Department of Commerce and Economic
3    Opportunity to implement the workforce development
4    programs and reporting as outlined in Section 16-108.12 of
5    the Public Utilities Act. In making the determinations
6    required under this subparagraph (O), the Commission shall
7    consider the experience and performance under the programs
8    and any evaluation reports. The Commission shall also
9    provide for an independent evaluation of those programs on
10    a periodic basis that are funded under this subparagraph
11    (O).
12        (P) All programs and procurements under this
13    subsection (c) shall be designed to encourage
14    participating projects to use a diverse and equitable
15    workforce and a diverse set of contractors, including
16    minority-owned businesses, disadvantaged businesses,
17    trade unions, graduates of any workforce training programs
18    administered under this Act, and small businesses.
19        The Agency shall develop a method to optimize
20    procurement of renewable energy credits from proposed
21    utility-scale projects that are located in communities
22    eligible to receive Energy Transition Community Grants
23    pursuant to Section 10-20 of the Energy Community
24    Reinvestment Act. If this requirement conflicts with other
25    provisions of law or the Agency determines that full
26    compliance with the requirements of this subparagraph (P)

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        corporate parent may aggregate their account demands
2        to meet the 10,000 kilowatt threshold. The criteria
3        for determining whether this subparagraph is
4        applicable to a retail customer shall be based on the
5        12 consecutive billing periods prior to the start of
6        the year in which the application is filed.
7            (2) For renewable energy credits to count toward
8        the self-direct renewable portfolio standard
9        compliance program, they must:
10                (i) qualify as renewable energy credits as
11            defined in Section 1-10 of this Act;
12                (ii) be sourced from one or more renewable
13            energy generating facilities that comply with the
14            geographic requirements as set forth in
15            subparagraph (I) of paragraph (1) of subsection
16            (c) as interpreted through the Agency's long-term
17            renewable resources procurement plan, or, where
18            applicable, the geographic requirements that
19            governed utility-scale renewable energy credits at
20            the time the eligible self-direct customer entered
21            into the applicable renewable energy credit
22            purchase agreement;
23                (iii) be procured through long-term contracts
24            with term lengths of at least 10 years either
25            directly with the renewable energy generating
26            facility or through a bundled power purchase

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    adjustment clause tariff in accordance with subsection (k)
2    of Section 16-108 of the Public Utilities Act.
3        (7) Renewable energy credits procured from new
4    photovoltaic projects or new distributed renewable energy
5    generation devices under this Section after June 1, 2017
6    (the effective date of Public Act 99-906) must be procured
7    from devices installed by a qualified person in compliance
8    with the requirements of Section 16-128A of the Public
9    Utilities Act and any rules or regulations adopted
10    thereunder.
11        In meeting the renewable energy requirements of this
12    subsection (c), to the extent feasible and consistent with
13    State and federal law, the renewable energy credit
14    procurements, Adjustable Block solar program, and
15    community renewable generation program shall provide
16    employment opportunities for all segments of the
17    population and workforce, including minority-owned and
18    female-owned business enterprises, and shall not,
19    consistent with State and federal law, discriminate based
20    on race or socioeconomic status.
21    (c-5) Procurement of renewable energy credits from new
22renewable energy facilities installed at or adjacent to the
23sites of electric generating facilities that burn or burned
24coal as their primary fuel source.
25        (1) In addition to the procurement of renewable energy
26    credits pursuant to long-term renewable resources

 

 

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1    procurement plans in accordance with subsection (c) of
2    this Section and Section 16-111.5 of the Public Utilities
3    Act, the Agency shall conduct procurement events in
4    accordance with this subsection (c-5) for the procurement
5    by electric utilities that served more than 300,000 retail
6    customers in this State as of January 1, 2019 of renewable
7    energy credits from new renewable energy facilities to be
8    installed at or adjacent to the sites of electric
9    generating facilities that, as of January 1, 2016, burned
10    coal as their primary fuel source and meet the other
11    criteria specified in this subsection (c-5). For purposes
12    of this subsection (c-5), "new renewable energy facility"
13    means a new utility-scale solar project as defined in this
14    Section 1-75. The renewable energy credits procured
15    pursuant to this subsection (c-5) may be included or
16    counted for purposes of compliance with the amounts of
17    renewable energy credits required to be procured pursuant
18    to subsection (c) of this Section to the extent that there
19    are otherwise shortfalls in compliance with such
20    requirements. The procurement of renewable energy credits
21    by electric utilities pursuant to this subsection (c-5)
22    shall be funded solely by revenues collected from the Coal
23    to Solar and Energy Storage Initiative Charge provided for
24    in this subsection (c-5) and subsection (i-5) of Section
25    16-108 of the Public Utilities Act, shall not be funded by
26    revenues collected through any of the other funding

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        interconnected to the PJM Interconnection, LLC
2        transmission grid and had a generating capacity of at
3        least 1,200 megawatts as of January 1, 2021, in which
4        case the applicable duration of the contract shall be
5        15 years.
6            (I) The applicant's application is certified by an
7        officer of the applicant and by an officer of the
8        applicant's ultimate parent company, if any.
9        (3) An applicant may submit applications to contract
10    to supply renewable energy credits from more than one new
11    renewable energy facility to be constructed at or adjacent
12    to one or more qualifying electric generating facilities
13    owned by the applicant. The Agency may select new
14    renewable energy facilities to be located at or adjacent
15    to the sites of more than one qualifying electric
16    generation facility owned by an applicant to contract with
17    electric utilities to supply renewable energy credits from
18    such facilities.
19        (4) The Agency shall assess fees to each applicant to
20    recover the Agency's costs incurred in receiving and
21    evaluating applications, conducting the procurement event,
22    developing contracts for sale, delivery and purchase of
23    renewable energy credits, and monitoring the
24    administration of such contracts, as provided for in this
25    subsection (c-5), including fees paid to a procurement
26    administrator retained by the Agency for one or more of

 

 

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

 

 

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1    of subsection (c) of Section 1-75.
2        (6) The obligation to purchase renewable energy
3    credits from the applicants and their new renewable energy
4    facilities selected by the Agency shall be allocated to
5    the electric utilities based on their respective
6    percentages of kilowatthours delivered to delivery
7    services customers to the aggregate kilowatthour
8    deliveries by the electric utilities to delivery services
9    customers for the year ended December 31, 2021. In order
10    to achieve these allocation percentages between or among
11    the electric utilities, the Agency shall require each
12    applicant that is selected in the procurement event to
13    enter into a contract with each electric utility for the
14    sale and purchase of renewable energy credits from each
15    new renewable energy facility to be constructed and
16    operated by the applicant, with the sale and purchase
17    obligations under the contracts to aggregate to the total
18    number of renewable energy credits per year to be supplied
19    by the applicant from the new renewable energy facility.
20        (7) The Agency shall submit its proposed selection of
21    applicants, new renewable energy facilities to be
22    constructed, and renewable energy credit amounts for each
23    procurement event to the Commission for approval. The
24    Commission shall, within 2 business days after receipt of
25    the Agency's proposed selections, approve the proposed
26    selections if it determines that the applicants and the

 

 

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

 

 

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1    commercial operation and payment start dates as needed due
2    to any delays in completing the procurement and
3    contracting processes, in finalizing interconnection
4    agreements and installing interconnection facilities, and
5    in obtaining other necessary governmental permits and
6    approvals. The form contract shall be, to the maximum
7    extent possible, consistent with standard electric
8    industry contracts for sale, delivery, and purchase of
9    renewable energy credits while taking into account the
10    specific requirements of this subsection (c-5). The form
11    contract shall provide for over-delivery and
12    under-delivery of renewable energy credits within
13    reasonable ranges during each 12-month period and penalty,
14    default, and enforcement provisions for failure of the
15    selling party to deliver renewable energy credits as
16    specified in the contract and to comply with the
17    requirements of this subsection (c-5). The standard form
18    contract shall specify that all renewable energy credits
19    delivered to the electric utility pursuant to the contract
20    shall be retired. The Agency shall make the proposed
21    contracts available for a reasonable period for comment by
22    potential applicants, and shall publish the final form
23    contract at least 30 days before the date of the first
24    procurement event.
25        (9) Coal to Solar and Energy Storage Initiative
26    Charge.

 

 

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1            (A) By no later than July 1, 2022, each electric
2        utility that served more than 300,000 retail customers
3        in this State as of January 1, 2019 shall file a tariff
4        with the Commission for the billing and collection of
5        a Coal to Solar and Energy Storage Initiative Charge
6        in accordance with subsection (i-5) of Section 16-108
7        of the Public Utilities Act, with such tariff to be
8        effective, following review and approval or
9        modification by the Commission, beginning January 1,
10        2023. The tariff shall provide for the calculation and
11        setting of the electric utility's Coal to Solar and
12        Energy Storage Initiative Charge to collect revenues
13        estimated to be sufficient, in the aggregate, (i) to
14        enable the electric utility to pay for the renewable
15        energy credits it has contracted to purchase in the
16        delivery year beginning June 1, 2023 and each delivery
17        year thereafter from new renewable energy facilities
18        located at the sites of qualifying electric generating
19        facilities, and (ii) to fund the grant payments to be
20        made in each delivery year by the Department of
21        Commerce and Economic Opportunity, or any successor
22        department or agency, which shall be referred to in
23        this subsection (c-5) as the Department, pursuant to
24        paragraph (10) of this subsection (c-5). The electric
25        utility's tariff shall provide for the billing and
26        collection of the Coal to Solar and Energy Storage

 

 

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

 

 

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

 

 

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

 

 

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1            Utilities Act, or (ii) an entity described in
2            subsection (b)(1) of Section 3-105 of the Public
3            Utilities Act, or an association or consortium of
4            or an entity owned by entities described in items
5            (i) or (ii);
6                (7) the proposed energy storage facility at
7            the site will have energy storage capacity of at
8            least 37 megawatts;
9                (8) the owner commits to place the energy
10            storage facility into commercial operation on
11            either June 1, 2023, June 1, 2024, or June 1, 2025,
12            with such date subject to adjustment as needed due
13            to any delays in completing the grant contracting
14            process, in finalizing interconnection agreements
15            and in installing interconnection facilities, and
16            in obtaining necessary governmental permits and
17            approvals;
18                (9) the owner agrees that the new energy
19            storage facility will be constructed or installed
20            by a qualified entity or entities consistent with
21            the requirements of subsection (g) of Section
22            16-128A of the Public Utilities Act and any rules
23            adopted under that Section;
24                (10) the owner agrees that personnel operating
25            the energy storage facility will have the
26            requisite skills, knowledge, training, experience,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        during the year ending May 31, 2010 or 1% of the amount
2        paid per kilowatthour by those customers during the
3        year ending May 31, 2009;
4            (C) in 2012, the greater of an additional 0.5% of
5        the amount paid per kilowatthour by those customers
6        during the year ending May 31, 2011 or 1.5% of the
7        amount paid per kilowatthour by those customers during
8        the year ending May 31, 2009;
9            (D) in 2013, the greater of an additional 0.5% of
10        the amount paid per kilowatthour by those customers
11        during the year ending May 31, 2012 or 2% of the amount
12        paid per kilowatthour by those customers during the
13        year ending May 31, 2009; and
14            (E) thereafter, the total amount paid under
15        sourcing agreements with clean coal facilities
16        pursuant to the procurement plan for any single year
17        shall be reduced by an amount necessary to limit the
18        estimated average net increase due to the cost of
19        these resources included in the amounts paid by
20        eligible retail customers in connection with electric
21        service to no more than the greater of (i) 2.015% of
22        the amount paid per kilowatthour by those customers
23        during the year ending May 31, 2009 or (ii) the
24        incremental amount per kilowatthour paid for these
25        resources in 2013. These requirements may be altered
26        only as provided by statute.

 

 

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1        No later than June 30, 2015, the Commission shall
2    review the limitation on the total amount paid under
3    sourcing agreements, if any, with clean coal facilities
4    pursuant to this subsection (d) and report to the General
5    Assembly its findings as to whether that limitation unduly
6    constrains the amount of electricity generated by
7    cost-effective clean coal facilities that is covered by
8    sourcing agreements.
9        (3) Initial clean coal facility. In order to promote
10    development of clean coal facilities in Illinois, each
11    electric utility subject to this Section shall execute a
12    sourcing agreement to source electricity from a proposed
13    clean coal facility in Illinois (the "initial clean coal
14    facility") that will have a nameplate capacity of at least
15    500 MW when commercial operation commences, that has a
16    final Clean Air Act permit on June 1, 2009 (the effective
17    date of Public Act 95-1027), and that will meet the
18    definition of clean coal facility in Section 1-10 of this
19    Act when commercial operation commences. The sourcing
20    agreements with this initial clean coal facility shall be
21    subject to both approval of the initial clean coal
22    facility by the General Assembly and satisfaction of the
23    requirements of paragraph (4) of this subsection (d) and
24    shall be executed within 90 days after any such approval
25    by the General Assembly. The Agency and the Commission
26    shall have authority to inspect all books and records

 

 

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

 

 

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1            pursuant to paragraph (3) of this subsection (d)
2            or item (5) of subsection (d) of Section 16-115 of
3            the Public Utilities Act, whether generated from
4            the synthesis gas derived from coal, from SNG, or
5            from natural gas, shall be credited against the
6            revenue requirement for this initial clean coal
7            facility;
8            (B) power purchase provisions, which shall:
9                (i) provide that the utility party to such
10            sourcing agreement shall pay the contract price
11            for electricity delivered under such sourcing
12            agreement;
13                (ii) require delivery of electricity to the
14            regional transmission organization market of the
15            utility that is party to such sourcing agreement;
16                (iii) require the utility party to such
17            sourcing agreement to buy from the initial clean
18            coal facility in each hour an amount of energy
19            equal to all clean coal energy made available from
20            the initial clean coal facility during such hour
21            times a fraction, the numerator of which is such
22            utility's retail market sales of electricity
23            (expressed in kilowatthours sold) in the State
24            during the prior calendar month and the
25            denominator of which is the total retail market
26            sales of electricity (expressed in kilowatthours

 

 

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

 

 

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

 

 

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1            facility busbar, multiplied by (2) the quantity of
2            electricity determined pursuant to the preceding
3            clause (i); and
4                (iii) not require the utility to take physical
5            delivery of the electricity produced by the
6            facility;
7            (D) general provisions, which shall:
8                (i) specify a term of no more than 30 years,
9            commencing on the commercial operation date of the
10            facility;
11                (ii) provide that utilities shall maintain
12            adequate records documenting purchases under the
13            sourcing agreements entered into to comply with
14            this subsection (d) and shall file an accounting
15            with the load forecast that must be filed with the
16            Agency by July 15 of each year, in accordance with
17            subsection (d) of Section 16-111.5 of the Public
18            Utilities Act;
19                (iii) provide that all costs associated with
20            the initial clean coal facility will be
21            periodically reported to the Federal Energy
22            Regulatory Commission and to purchasers in
23            accordance with applicable laws governing
24            cost-based wholesale power contracts;
25                (iv) permit the Illinois Power Agency to
26            assume ownership of the initial clean coal

 

 

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1            facility, without monetary consideration and
2            otherwise on reasonable terms acceptable to the
3            Agency, if the Agency so requests no less than 3
4            years prior to the end of the stated contract
5            term;
6                (v) require the owner of the initial clean
7            coal facility to provide documentation to the
8            Commission each year, starting in the facility's
9            first year of commercial operation, accurately
10            reporting the quantity of carbon emissions from
11            the facility that have been captured and
12            sequestered and report any quantities of carbon
13            released from the site or sites at which carbon
14            emissions were sequestered in prior years, based
15            on continuous monitoring of such sites. If, in any
16            year after the first year of commercial operation,
17            the owner of the facility fails to demonstrate
18            that the initial clean coal facility captured and
19            sequestered at least 50% of the total carbon
20            emissions that the facility would otherwise emit
21            or that sequestration of emissions from prior
22            years has failed, resulting in the release of
23            carbon dioxide into the atmosphere, the owner of
24            the facility must offset excess emissions. Any
25            such carbon offsets must be permanent, additional,
26            verifiable, real, located within the State of

 

 

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

 

 

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1            reduce the allowable return on equity for the
2            facility if the facility willfully fails to comply
3            with the carbon capture and sequestration
4            requirements set forth in this item (v);
5                (vi) include limits on, and accordingly
6            provide for modification of, the amount the
7            utility is required to source under the sourcing
8            agreement consistent with paragraph (2) of this
9            subsection (d);
10                (vii) require Commission review: (1) to
11            determine the justness, reasonableness, and
12            prudence of the inputs to the formula referenced
13            in subparagraphs (A)(i) through (A)(iii) of
14            paragraph (3) of this subsection (d), prior to an
15            adjustment in those inputs including, without
16            limitation, the capital structure and return on
17            equity, fuel costs, and other operations and
18            maintenance costs and (2) to approve the costs to
19            be passed through to customers under the sourcing
20            agreement by which the utility satisfies its
21            statutory obligations. Commission review shall
22            occur no less than every 3 years, regardless of
23            whether any adjustments have been proposed, and
24            shall be completed within 9 months;
25                (viii) limit the utility's obligation to such
26            amount as the utility is allowed to recover

 

 

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1            through tariffs filed with the Commission,
2            provided that neither the clean coal facility nor
3            the utility waives any right to assert federal
4            pre-emption or any other argument in response to a
5            purported disallowance of recovery costs;
6                (ix) limit the utility's or alternative retail
7            electric supplier's obligation to incur any
8            liability until such time as the facility is in
9            commercial operation and generating power and
10            energy and such power and energy is being
11            delivered to the facility busbar;
12                (x) provide that the owner or owners of the
13            initial clean coal facility, which is the
14            counterparty to such sourcing agreement, shall
15            have the right from time to time to elect whether
16            the obligations of the utility party thereto shall
17            be governed by the power purchase provisions or
18            the contract for differences provisions;
19                (xi) append documentation showing that the
20            formula rate and contract, insofar as they relate
21            to the power purchase provisions, have been
22            approved by the Federal Energy Regulatory
23            Commission pursuant to Section 205 of the Federal
24            Power Act;
25                (xii) provide that any changes to the terms of
26            the contract, insofar as such changes relate to

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (d-5) Zero emission standard.
2        (1) Beginning with the delivery year commencing on
3    June 1, 2017, the Agency shall, for electric utilities
4    that serve at least 100,000 retail customers in this
5    State, procure contracts with zero emission facilities
6    that are reasonably capable of generating cost-effective
7    zero emission credits in an amount approximately equal to
8    16% of the actual amount of electricity delivered by each
9    electric utility to retail customers in the State during
10    calendar year 2014. For an electric utility serving fewer
11    than 100,000 retail customers in this State that
12    requested, under Section 16-111.5 of the Public Utilities
13    Act, that the Agency procure power and energy for all or a
14    portion of the utility's Illinois load for the delivery
15    year commencing June 1, 2016, the Agency shall procure
16    contracts with zero emission facilities that are
17    reasonably capable of generating cost-effective zero
18    emission credits in an amount approximately equal to 16%
19    of the portion of power and energy to be procured by the
20    Agency for the utility. The duration of the contracts
21    procured under this subsection (d-5) shall be for a term
22    of 10 years ending May 31, 2027. The quantity of zero
23    emission credits to be procured under the contracts shall
24    be all of the zero emission credits generated by the zero
25    emission facility in each delivery year; however, if the
26    zero emission facility is owned by more than one entity,

 

 

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

 

 

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

 

 

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1        Information Act. The Office of Attorney General shall
2        have access to, and maintain the confidentiality of,
3        such information pursuant to Section 6.5 of the
4        Attorney General Act.
5            (B) The price for each zero emission credit
6        procured under this subsection (d-5) for each delivery
7        year shall be in an amount that equals the Social Cost
8        of Carbon, expressed on a price per megawatthour
9        basis. However, to ensure that the procurement remains
10        affordable to retail customers in this State if
11        electricity prices increase, the price in an
12        applicable delivery year shall be reduced below the
13        Social Cost of Carbon by the amount ("Price
14        Adjustment") by which the market price index for the
15        applicable delivery year exceeds the baseline market
16        price index for the consecutive 12-month period ending
17        May 31, 2016. If the Price Adjustment is greater than
18        or equal to the Social Cost of Carbon in an applicable
19        delivery year, then no payments shall be due in that
20        delivery year. The components of this calculation are
21        defined as follows:
22                (i) Social Cost of Carbon: The Social Cost of
23            Carbon is $16.50 per megawatthour, which is based
24            on the U.S. Interagency Working Group on Social
25            Cost of Carbon's price in the August 2016
26            Technical Update using a 3% discount rate,

 

 

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1            adjusted for inflation for each year of the
2            program. Beginning with the delivery year
3            commencing June 1, 2023, the price per
4            megawatthour shall increase by $1 per
5            megawatthour, and continue to increase by an
6            additional $1 per megawatthour each delivery year
7            thereafter.
8                (ii) Baseline market price index: The baseline
9            market price index for the consecutive 12-month
10            period ending May 31, 2016 is $31.40 per
11            megawatthour, which is based on the sum of (aa)
12            the average day-ahead energy price across all
13            hours of such 12-month period at the PJM
14            Interconnection LLC Northern Illinois Hub, (bb)
15            50% multiplied by the Base Residual Auction, or
16            its successor, capacity price for the rest of the
17            RTO zone group determined by PJM Interconnection
18            LLC, divided by 24 hours per day, and (cc) 50%
19            multiplied by the Planning Resource Auction, or
20            its successor, capacity price for Zone 4
21            determined by the Midcontinent Independent System
22            Operator, Inc., divided by 24 hours per day.
23                (iii) Market price index: The market price
24            index for a delivery year shall be the sum of
25            projected energy prices and projected capacity
26            prices determined as follows:

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        Utilities Act, to the extent practicable.
2        Notwithstanding whether a procurement event is
3        conducted under Section 16-111.5 of the Public
4        Utilities Act, the Agency shall immediately initiate a
5        procurement process on June 1, 2017 (the effective
6        date of Public Act 99-906).
7            (D) Following the procurement event described in
8        this paragraph (1) and consistent with subparagraph
9        (B) of this paragraph (1), the Agency shall calculate
10        the payments to be made under each contract for the
11        next delivery year based on the market price index for
12        that delivery year. The Agency shall publish the
13        payment calculations no later than May 25, 2017 and
14        every May 25 thereafter.
15            (E) Notwithstanding the requirements of this
16        subsection (d-5), the contracts executed under this
17        subsection (d-5) shall provide that the zero emission
18        facility may, as applicable, suspend or terminate
19        performance under the contracts in the following
20        instances:
21                (i) A zero emission facility shall be excused
22            from its performance under the contract for any
23            cause beyond the control of the resource,
24            including, but not restricted to, acts of God,
25            flood, drought, earthquake, storm, fire,
26            lightning, epidemic, war, riot, civil disturbance

 

 

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

 

 

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1            apply to any generally applicable tax, special
2            assessment or fee, or requirements imposed by
3            federal law.
4                (iii) A zero emission facility shall be
5            permitted to terminate the contract in the event
6            that the resource requires capital expenditures in
7            excess of $40,000,000 that were neither known nor
8            reasonably foreseeable at the time it executed the
9            contract and that a prudent owner or operator of
10            such resource would not undertake.
11                (iv) A zero emission facility shall be
12            permitted to terminate the contract in the event
13            the Nuclear Regulatory Commission terminates the
14            resource's license.
15            (F) If the zero emission facility elects to
16        terminate a contract under subparagraph (E) of this
17        paragraph (1), then the Commission shall reopen the
18        docket in which the Commission approved the zero
19        emission standard procurement plan under subparagraph
20        (C) of this paragraph (1) and, after notice and
21        hearing, enter an order acknowledging the contract
22        termination election if such termination is consistent
23        with the provisions of this subsection (d-5).
24        (2) For purposes of this subsection (d-5), the amount
25    paid per kilowatthour means the total amount paid for
26    electric service expressed on a per kilowatthour basis.

 

 

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1    For purposes of this subsection (d-5), the total amount
2    paid for electric service includes, without limitation,
3    amounts paid for supply, transmission, distribution,
4    surcharges, and add-on taxes.
5        Notwithstanding the requirements of this subsection
6    (d-5), the contracts executed under this subsection (d-5)
7    shall provide that the total of zero emission credits
8    procured under a procurement plan shall be subject to the
9    limitations of this paragraph (2). For each delivery year,
10    the contractual volume receiving payments in such year
11    shall be reduced for all retail customers based on the
12    amount necessary to limit the net increase that delivery
13    year to the costs of those credits included in the amounts
14    paid by eligible retail customers in connection with
15    electric service to no more than 1.65% of the amount paid
16    per kilowatthour by eligible retail customers during the
17    year ending May 31, 2009. The result of this computation
18    shall apply to and reduce the procurement for all retail
19    customers, and all those customers shall pay the same
20    single, uniform cents per kilowatthour charge under
21    subsection (k) of Section 16-108 of the Public Utilities
22    Act. To arrive at a maximum dollar amount of zero emission
23    credits to be paid for the particular delivery year, the
24    resulting per kilowatthour amount shall be applied to the
25    actual amount of kilowatthours of electricity delivered by
26    the electric utility in the delivery year immediately

 

 

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

 

 

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

 

 

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

 

 

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1    under subsection (m) of Section 16-108 of the Public
2    Utilities Act.
3        (7) This subsection (d-5) shall become inoperative on
4    January 1, 2028.
5    (d-10) Nuclear Plant Assistance; carbon mitigation
6credits.
7    (1) The General Assembly finds:
8        (A) The health, welfare, and prosperity of all
9    Illinois citizens require that the State of Illinois act
10    to avoid and not increase carbon emissions from electric
11    generation sources while continuing to ensure affordable,
12    stable, and reliable electricity to all citizens.
13        (B) Absent immediate action by the State to preserve
14    existing carbon-free energy resources, those resources may
15    retire, and the electric generation needs of Illinois'
16    retail customers may be met instead by facilities that
17    emit significant amounts of carbon pollution and other
18    harmful air pollutants at a high social and economic cost
19    until Illinois is able to develop other forms of clean
20    energy.
21        (C) The General Assembly finds that nuclear power
22    generation is necessary for the State's transition to 100%
23    clean energy, and ensuring continued operation of nuclear
24    plants advances environmental and public health interests
25    through providing carbon-free electricity while reducing
26    the air pollution profile of the Illinois energy

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1474 Enrolled- 196 -LRB103 29372 AMQ 55761 b

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

 

 

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1    procurement plan with the Commission.
2        (E) If the Commission determines that the plan is
3    likely to result in the procurement of cost-effective
4    carbon mitigation credits, then the Commission shall,
5    after notice and hearing and opportunity for comment, but
6    no later than 42 days after the Agency filed the plan,
7    approve the plan or approve it with modification. For
8    purposes of this subsection (d-10), "cost-effective" means
9    carbon mitigation credits that are procured from
10    carbon-free energy resources at prices that are within the
11    limits specified in this paragraph (3). As part of the
12    Commission's review and acceptance or rejection of the
13    procurement results, the Commission shall, in its public
14    notice of successful bidders:
15            (i) identify how the selected carbon-free energy
16        resources satisfy the public interest criteria
17        described in this paragraph (3) of minimizing carbon
18        dioxide emissions that result from electricity
19        consumed in Illinois and minimizing sulfur dioxide,
20        nitrogen oxide, and particulate matter emissions that
21        adversely affect the citizens of this State;
22            (ii) specifically address how the selection of
23        carbon-free energy resources takes into account the
24        incremental environmental benefits resulting from the
25        procurement, including any existing environmental
26        benefits that are preserved by the procurements held

 

 

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1        under this amendatory Act of the 102nd General
2        Assembly and would have ceased to exist if the
3        procurements had not been held, such as the
4        preservation of carbon-free energy resources;
5            (iii) quantify the environmental benefit of
6        preserving the carbon-free energy resources procured
7        pursuant to this subsection (d-10), including the
8        following:
9                (I) an assessment value of avoided greenhouse
10            gas emissions measured as the product of the
11            carbon-free energy resources' output over the
12            contract term, using generally accepted
13            methodologies for the valuation of avoided
14            emissions; and
15                (II) an assessment of costs of replacement
16            with other carbon-free energy resources and
17            renewable energy resources, including wind and
18            photovoltaic generation, based upon an assessment
19            of the prices paid for renewable energy credits
20            through programs and procurements conducted
21            pursuant to subsection (c) of Section 1-75 of this
22            Act, and the additional storage necessary to
23            produce the same or similar capability of matching
24            customer usage patterns.
25        (F) The procurements described in this paragraph (3),
26    including, but not limited to, the execution of all

 

 

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1    contracts procured, shall be completed no later than
2    December 3, 2021. The procurement and plan approval
3    processes required by this paragraph (3) shall be
4    conducted in conjunction with the procurement and plan
5    approval processes required by Section 16-111.5 of the
6    Public Utilities Act, to the extent practicable. However,
7    the Agency and Commission may, as appropriate, modify the
8    various dates and timelines under this subparagraph and
9    subparagraphs (D) and (E) of this paragraph (3) to meet
10    the December 3, 2021 contract execution deadline.
11    Following the completion of such procurements, and
12    consistent with this paragraph (3), the Agency shall
13    calculate the payments to be made under each contract in a
14    timely fashion.
15        (F-1) Costs incurred by the electric utility pursuant
16    to a contract authorized by this subsection (d-10) shall
17    be deemed prudently incurred and reasonable in amount, and
18    the electric utility shall be entitled to full cost
19    recovery pursuant to a tariff or tariffs filed with the
20    Commission.
21        (G) The counterparty electric utility shall retire all
22    carbon mitigation credits used to comply with the
23    requirements of this subsection (d-10).
24        (H) If a carbon-free energy resource is sold to
25    another owner, the rights, obligations, and commitments
26    under this subsection (d-10) shall continue to the

 

 

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1    subsequent owner.
2        (I) This subsection (d-10) shall become inoperative on
3    January 1, 2028.
4    (e) The draft procurement plans are subject to public
5comment, as required by Section 16-111.5 of the Public
6Utilities Act.
7    (f) The Agency shall submit the final procurement plan to
8the Commission. The Agency shall revise a procurement plan if
9the Commission determines that it does not meet the standards
10set forth in Section 16-111.5 of the Public Utilities Act.
11    (g) The Agency shall assess fees to each affected utility
12to recover the costs incurred in preparation of the annual
13procurement plan for the utility.
14    (h) The Agency shall assess fees to each bidder to recover
15the costs incurred in connection with a competitive
16procurement process.
17    (i) A renewable energy credit, carbon emission credit,
18zero emission credit, or carbon mitigation credit can only be
19used once to comply with a single portfolio or other standard
20as set forth in subsection (c), subsection (d), or subsection
21(d-5) of this Section, respectively. A renewable energy
22credit, carbon emission credit, zero emission credit, or
23carbon mitigation credit cannot be used to satisfy the
24requirements of more than one standard. If more than one type
25of credit is issued for the same megawatt hour of energy, only
26one credit can be used to satisfy the requirements of a single

 

 

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1standard. After such use, the credit must be retired together
2with any other credits issued for the same megawatt hour of
3energy.
4(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
5102-662, eff. 9-15-21.)
 
6    Section 10. The Public Utilities Act is amended by
7changing Section 8-512 as follows:
 
8    (220 ILCS 5/8-512)
9    Sec. 8-512. Renewable energy access plan.
10    (a) It is the policy of this State to promote
11cost-effective transmission system development that ensures
12reliability of the electric transmission system, lowers carbon
13emissions, minimizes long-term costs for consumers, and
14supports the electric policy goals of this State. The General
15Assembly finds that:
16        (1) Transmission planning, primarily for reliability
17    purposes, but also for economic and public policy reasons
18    is conducted by regional transmission organizations in
19    which transmission-owning Illinois utilities and other
20    stakeholders are members.
21        (2) Order No. 1000 of the Federal Energy Regulatory
22    Commission requires regional transmission organizations to
23    plan for transmission system needs in light of State
24    public policies and to accept input from states during the

 

 

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1    transmission system planning processes.
2        (3) The State of Illinois does not currently have a
3    comprehensive power and environmental policy planning
4    process to identify transmission infrastructure needs that
5    can serve as a vital input into the regional and
6    interregional transmission organization planning
7    processes conducted under Order No. 1000 and other laws
8    and regulations.
9        (4) This State is an electricity generation and power
10    transmission hub, and can leverage that position to invest
11    in infrastructure that enables new and existing Illinois
12    generators to meet the public policy goals of the State of
13    Illinois and of interconnected states while
14    cost-effectively supporting tens of thousands of jobs in
15    the renewable energy sector in this State.
16        (5) The nation has a need to readily access this
17    State's low-cost, clean electric power, and this State
18    also desires access to clean energy resources in other
19    states to develop and support its low-carbon economy and
20    keep electricity prices low in Illinois and interconnected
21    States.
22        (6) Existing transmission infrastructure may constrain
23    the State's achievement of 100% renewable energy by 2050,
24    the accelerated adoption of electric vehicles in a just
25    and equitable way, and electrification of additional
26    sectors of the Illinois economy.

 

 

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

 

 

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1    under which those alternatives should be considered and
2    approved. The alternatives are likely to be beneficial as
3    investment in electric transmission infrastructure moves
4    forward.
5        (11) Because transmission planning is conducted
6    primarily by the regional transmission organizations, the
7    Commission should be advocating for the State's interests
8    at the regional transmission organizations to ensure that
9    such planning facilitates the State's policies and goals,
10    including overall consumer savings, power system
11    reliability, economic development, environmental
12    improvement, and carbon reduction.
13    (b) Consistent with the findings identified in subsection
14(a), the Commission shall open an investigation to develop and
15adopt a renewable energy access plan no later than December
1631, 2022. To assist and support the Commission in the
17development of the plan, the Commission shall retain the
18services of technical and policy experts with relevant fields
19of expertise, solicit technical and policy analysis from the
20public, and provide for a 120-day open public comment period
21after publication of a draft report, which shall be published
22no later than 90 days after the comment period ends. The plan
23shall, at a minimum, do the following:
24        (1) designate renewable energy access plan zones
25    throughout this State in areas in which renewable energy
26    resources and suitable land areas are sufficient for

 

 

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

 

 

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1    region;
2        (6) make findings and policy recommendations based on
3    technical and policy analysis regarding locations of
4    renewable energy access plan zones and the transmission
5    system developments needed to cost-effectively achieve the
6    public policy goals identified herein; and
7        (6.5) make findings and policy recommendations based
8    on analysis regarding the impact of converting non-powered
9    dams to hydropower dams relative to the alternative
10    renewable energy resources; and
11        (7) present the Commission's conclusions and proposed
12    recommendations based on its analysis and use the findings
13    and policy recommendations to determine actions that the
14    Commission should take.
15    (c) No later than December 31, 2025, and every other year
16thereafter, the Commission shall open an investigation to
17develop and adopt an updated renewable energy access plan
18that, at a minimum, evaluates the implementation and
19effectiveness of the renewable energy access plan, recommends
20improvements to the renewable energy access plan, and provides
21changes to transmission capacity necessary to deliver electric
22output from the renewable energy access plan zones.
23(Source: P.A. 102-662, eff. 9-15-21.)