103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1588

 

Introduced 2/8/2023, by Sen. Bill Cunningham

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-10
20 ILCS 3855/1-75

    Amends the Illinois Power Agency Act. Adds to the definition of "brownfield site photovoltaic project", photovoltaics that meet the criteria that the project is interconnected to an electric utility, a municipal utility, a public utility as defined in the Public Utilities Act, or an electric cooperative as defined in the Public Utilities Act and is located on any part of the site, and within the property boundaries, of a coal-fueled electric generating plant in this State that was retired as of January 1, 2023, or that the generating plant owner commits to retire prior to the commercial operation date of the project. In provisions concerning renewable energy credits from new projects in the long-term renewable resources procurement plan, the Agency shall procure 55% from photovoltaic projects where at least 44% (rather than 47%) are from utility-scale solar projects and at least 3% are from projects that meet specified criteria. Effective immediately.


LRB103 28437 AMQ 54817 b

 

 

A BILL FOR

 

SB1588LRB103 28437 AMQ 54817 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-10 and 1-75 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 meet the criteria specified in paragraph (1), (2), or (3)
20are either:
21        (1) the project is interconnected to an electric
22    utility as defined in this Section, a municipal utility as
23    defined in this Section, a public utility as defined in

 

 

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1    Section 3-105 of the Public Utilities Act, or an electric
2    cooperative as defined in Section 3-119 of the Public
3    Utilities Act and located at a site that is regulated by
4    any of the following entities under the following
5    programs:
6            (A) the United States Environmental Protection
7        Agency under the federal Comprehensive Environmental
8        Response, Compensation, and Liability Act of 1980, as
9        amended;
10            (B) the United States Environmental Protection
11        Agency under the Corrective Action Program of the
12        federal Resource Conservation and Recovery Act, as
13        amended;
14            (C) the Illinois Environmental Protection Agency
15        under the Illinois Site Remediation Program; or
16            (D) the Illinois Environmental Protection Agency
17        under the Illinois Solid Waste Program; or
18        (2) the project is located at the site of a coal mine
19    that has permanently ceased coal production, permanently
20    halted any re-mining operations, and is no longer
21    accepting any coal combustion residues; has both completed
22    all clean-up and remediation obligations under the federal
23    Surface Mining and Reclamation Act of 1977 and all
24    applicable Illinois rules and any other clean-up,
25    remediation, or ongoing monitoring to safeguard the health
26    and well-being of the people of the State of Illinois, as

 

 

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1    well as demonstrated compliance with all applicable
2    federal and State environmental rules and regulations,
3    including, but not limited, to 35 Ill. Adm. Code Part 845
4    and any rules for historic fill of coal combustion
5    residuals, including any rules finalized in Subdocket A of
6    Illinois Pollution Control Board docket R2020-019; or .
7        (3) the project is interconnected to an electric
8    utility, a municipal utility, a public utility as defined
9    in Section 3-105 of the Public Utilities Act, or an
10    electric cooperative as defined in Section 3-119 of the
11    Public Utilities Act and is located on any part of the
12    site, and within the property boundaries, of a coal-fueled
13    electric generating plant in this State that was retired
14    as of January 1, 2023, or that the generating plant owner
15    commits to retire prior to the commercial operation date
16    of the project, regardless of whether or not any portion
17    of the site is regulated under one or more of the programs
18    listed in paragraph (2) of this definition. However, this
19    subparagraph shall not include projects selected to enter
20    into renewable energy credit contracts pursuant to
21    subsection (c-5) of Section 1-75.
22    "Clean coal facility" means an electric generating
23facility that uses primarily coal as a feedstock and that
24captures and sequesters carbon dioxide emissions at the
25following levels: at least 50% of the total carbon dioxide
26emissions that the facility would otherwise emit if, at the

 

 

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1time construction commences, the facility is scheduled to
2commence operation before 2016, at least 70% of the total
3carbon dioxide emissions that the facility would otherwise
4emit if, at the time construction commences, the facility is
5scheduled to commence operation during 2016 or 2017, and at
6least 90% of the total carbon dioxide emissions that the
7facility would otherwise emit if, at the time construction
8commences, the facility is scheduled to commence operation
9after 2017. The power block of the clean coal facility shall
10not exceed allowable emission rates for sulfur dioxide,
11nitrogen oxides, carbon monoxide, particulates and mercury for
12a natural gas-fired combined-cycle facility the same size as
13and in the same location as the clean coal facility at the time
14the clean coal facility obtains an approved air permit. All
15coal used by a clean coal facility shall have high volatile
16bituminous rank and greater than 1.7 pounds of sulfur per
17million Btu btu content, unless the clean coal facility does
18not use gasification technology and was operating as a
19conventional coal-fired electric generating facility on June
201, 2009 (the effective date of Public Act 95-1027).
21    "Clean coal SNG brownfield facility" means a facility that
22(1) has commenced construction by July 1, 2015 on an urban
23brownfield site in a municipality with at least 1,000,000
24residents; (2) uses a gasification process to produce
25substitute natural gas; (3) uses coal as at least 50% of the
26total feedstock over the term of any sourcing agreement with a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1optimization measures that optimize the voltage at points on
2the electric distribution voltage system and thereby reduce
3electricity consumption by electric customers' end use
4devices. "Energy efficiency" also includes measures that
5reduce the total Btus of electricity, natural gas, and other
6fuels needed to meet the end use or uses.
7    "Electric utility" has the same definition as found in
8Section 16-102 of the Public Utilities Act.
9    "Equity investment eligible community" or "eligible
10community" are synonymous and mean the geographic areas
11throughout Illinois which would most benefit from equitable
12investments by the State designed to combat discrimination.
13Specifically, the eligible communities shall be defined as the
14following areas:
15        (1) R3 Areas as established pursuant to Section 10-40
16    of the Cannabis Regulation and Tax Act, where residents
17    have historically been excluded from economic
18    opportunities, including opportunities in the energy
19    sector; and
20        (2) environmental Environmental justice communities,
21    as defined by the Illinois Power Agency pursuant to the
22    Illinois Power Agency Act, where residents have
23    historically been subject to disproportionate burdens of
24    pollution, including pollution from the energy sector.
25    "Equity eligible persons" or "eligible persons" means
26persons who would most benefit from equitable investments by

 

 

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1the State designed to combat discrimination, specifically:
2        (1) persons who graduate from or are current or former
3    participants in the Clean Jobs Workforce Network Program,
4    the Clean Energy Contractor Incubator Program, the
5    Illinois Climate Works Preapprenticeship Program,
6    Returning Residents Clean Jobs Training Program, or the
7    Clean Energy Primes Contractor Accelerator Program, and
8    the solar training pipeline and multi-cultural jobs
9    program created in paragraphs (a)(1) and (a)(3) of Section
10    16-208.12 16-108.21 of the Public Utilities Act;
11        (2) persons who are graduates of or currently enrolled
12    in the foster care system;
13        (3) persons who were formerly incarcerated;
14        (4) persons whose primary residence is in an equity
15    investment eligible community.
16    "Equity eligible contractor" means a business that is
17majority-owned by eligible persons, or a nonprofit or
18cooperative that is majority-governed by eligible persons, or
19is a natural person that is an eligible person offering
20personal services as an independent contractor.
21    "Facility" means an electric generating unit or a
22co-generating unit that produces electricity along with
23related equipment necessary to connect the facility to an
24electric transmission or distribution system.
25    "General contractor Contractor" means the entity or
26organization with main responsibility for the building of a

 

 

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1construction project and who is the party signing the prime
2construction contract for the project.
3    "Governmental aggregator" means one or more units of local
4government that individually or collectively procure
5electricity to serve residential retail electrical loads
6located within its or their jurisdiction.
7    "High voltage direct current converter station" means the
8collection of equipment that converts direct current energy
9from a high voltage direct current transmission line into
10alternating current using Voltage Source Conversion technology
11and that is interconnected with transmission or distribution
12assets located in Illinois.
13    "High voltage direct current renewable energy credit"
14means a renewable energy credit associated with a renewable
15energy resource where the renewable energy resource has
16entered into a contract to transmit the energy associated with
17such renewable energy credit over high voltage direct current
18transmission facilities.
19    "High voltage direct current transmission facilities"
20means the collection of installed equipment that converts
21alternating current energy in one location to direct current
22and transmits that direct current energy to a high voltage
23direct current converter station using Voltage Source
24Conversion technology. "High voltage direct current
25transmission facilities" includes the high voltage direct
26current converter station itself and associated high voltage

 

 

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1direct current transmission lines. Notwithstanding the
2preceding, after September 15, 2021 (the effective date of
3Public Act 102-662) this amendatory Act of the 102nd General
4Assembly, an otherwise qualifying collection of equipment does
5not qualify as high voltage direct current transmission
6facilities unless its developer entered into a project labor
7agreement, is capable of transmitting electricity at 525kv
8with an Illinois converter station located and interconnected
9in the region of the PJM Interconnection, LLC, and the system
10does not operate as a public utility, as that term is defined
11in Section 3-105 of the Public Utilities Act.
12    "Index price" means the real-time energy settlement price
13at the applicable Illinois trading hub, such as PJM-NIHUB or
14MISO-IL, for a given settlement period.
15    "Indexed renewable energy credit" means a tradable credit
16that represents the environmental attributes of one megawatt
17hour of energy produced from a renewable energy resource, the
18price of which shall be calculated by subtracting the strike
19price offered by a new utility-scale wind project or a new
20utility-scale photovoltaic project from the index price in a
21given settlement period.
22    "Indexed renewable energy credit counterparty" has the
23same meaning as "public utility" as defined in Section 3-105
24of the Public Utilities Act.
25    "Local government" means a unit of local government as
26defined in Section 1 of Article VII of the Illinois

 

 

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1Constitution.
2    "Municipality" means a city, village, or incorporated
3town.
4    "Municipal utility" means a public utility owned and
5operated by any subdivision or municipal corporation of this
6State.
7    "Nameplate capacity" means the aggregate inverter
8nameplate capacity in kilowatts AC.
9    "Person" means any natural person, firm, partnership,
10corporation, either domestic or foreign, company, association,
11limited liability company, joint stock company, or association
12and includes any trustee, receiver, assignee, or personal
13representative thereof.
14    "Project" means the planning, bidding, and construction of
15a facility.
16    "Project labor agreement" means a pre-hire collective
17bargaining agreement that covers all terms and conditions of
18employment on a specific construction project and must include
19the following:
20        (1) provisions establishing the minimum hourly wage
21    for each class of labor organization employee;
22        (2) provisions establishing the benefits and other
23    compensation for each class of labor organization
24    employee;
25        (3) provisions establishing that no strike or disputes
26    will be engaged in by the labor organization employees;

 

 

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1        (4) provisions establishing that no lockout or
2    disputes will be engaged in by the general contractor
3    building the project; and
4        (5) provisions for minorities and women, as defined
5    under the Business Enterprise for Minorities, Women, and
6    Persons with Disabilities Act, setting forth goals for
7    apprenticeship hours to be performed by minorities and
8    women and setting forth goals for total hours to be
9    performed by underrepresented minorities and women.
10    A labor organization and the general contractor building
11the project shall have the authority to include other terms
12and conditions as they deem necessary.
13    "Public utility" has the same definition as found in
14Section 3-105 of the Public Utilities Act.
15    "Qualified combined heat and power systems" means systems
16that, either simultaneously or sequentially, produce
17electricity and useful thermal energy from a single fuel
18source. Such systems are eligible for "renewable energy
19credits" in an amount equal to its total energy output where a
20renewable fuel is consumed or in an amount equal to the net
21reduction in nonrenewable fuel consumed on a total energy
22output basis.
23    "Real property" means any interest in land together with
24all structures, fixtures, and improvements thereon, including
25lands under water and riparian rights, any easements,
26covenants, licenses, leases, rights-of-way, uses, and other

 

 

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1interests, together with any liens, judgments, mortgages, or
2other claims or security interests related to real property.
3    "Renewable energy credit" means a tradable credit that
4represents the environmental attributes of one megawatt hour
5of energy produced from a renewable energy resource.
6    "Renewable energy resources" includes energy and its
7associated renewable energy credit or renewable energy credits
8from wind, solar thermal energy, photovoltaic cells and
9panels, biodiesel, anaerobic digestion, crops and untreated
10and unadulterated organic waste biomass, and hydropower that
11does not involve new construction or significant expansion of
12hydropower dams, waste heat to power systems, or qualified
13combined heat and power systems. For purposes of this Act,
14landfill gas produced in the State is considered a renewable
15energy resource. "Renewable energy resources" does not include
16the incineration or burning of tires, garbage, general
17household, institutional, and commercial waste, industrial
18lunchroom or office waste, landscape waste, railroad
19crossties, utility poles, or construction or demolition
20debris, other than untreated and unadulterated waste wood.
21"Renewable energy resources" also includes high voltage direct
22current renewable energy credits and the associated energy
23converted to alternating current by a high voltage direct
24current converter station to the extent that: (1) the
25generator of such renewable energy resource contracted with a
26third party to transmit the energy over the high voltage

 

 

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1direct current transmission facilities, and (2) the
2third-party contracting for delivery of renewable energy
3resources over the high voltage direct current transmission
4facilities have ownership rights over the unretired associated
5high voltage direct current renewable energy credit.
6    "Retail customer" has the same definition as found in
7Section 16-102 of the Public Utilities Act.
8    "Revenue bond" means any bond, note, or other evidence of
9indebtedness issued by the Authority, the principal and
10interest of which is payable solely from revenues or income
11derived from any project or activity of the Agency.
12    "Sequester" means permanent storage of carbon dioxide by
13injecting it into a saline aquifer, a depleted gas reservoir,
14or an oil reservoir, directly or through an enhanced oil
15recovery process that may involve intermediate storage,
16regardless of whether these activities are conducted by a
17clean coal facility, a clean coal SNG facility, a clean coal
18SNG brownfield facility, or a party with which a clean coal
19facility, clean coal SNG facility, or clean coal SNG
20brownfield facility has contracted for such purposes.
21    "Service area" has the same definition as found in Section
2216-102 of the Public Utilities Act.
23    "Settlement period" means the period of time utilized by
24MISO and PJM and their successor organizations as the basis
25for settlement calculations in the real-time energy market.
26    "Sourcing agreement" means (i) in the case of an electric

 

 

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1utility, an agreement between the owner of a clean coal
2facility and such electric utility, which agreement shall have
3terms and conditions meeting the requirements of paragraph (3)
4of subsection (d) of Section 1-75, (ii) in the case of an
5alternative retail electric supplier, an agreement between the
6owner of a clean coal facility and such alternative retail
7electric supplier, which agreement shall have terms and
8conditions meeting the requirements of Section 16-115(d)(5) of
9the Public Utilities Act, and (iii) in case of a gas utility,
10an agreement between the owner of a clean coal SNG brownfield
11facility and the gas utility, which agreement shall have the
12terms and conditions meeting the requirements of subsection
13(h-1) of Section 9-220 of the Public Utilities Act.
14    "Strike price" means a contract price for energy and
15renewable energy credits from a new utility-scale wind project
16or a new utility-scale photovoltaic project.
17    "Subscriber" means a person who (i) takes delivery service
18from an electric utility, and (ii) has a subscription of no
19less than 200 watts to a community renewable generation
20project that is located in the electric utility's service
21area. No subscriber's subscriptions may total more than 40% of
22the nameplate capacity of an individual community renewable
23generation project. Entities that are affiliated by virtue of
24a common parent shall not represent multiple subscriptions
25that total more than 40% of the nameplate capacity of an
26individual community renewable generation project.

 

 

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1    "Subscription" means an interest in a community renewable
2generation project expressed in kilowatts, which is sized
3primarily to offset part or all of the subscriber's
4electricity usage.
5    "Substitute natural gas" or "SNG" means a gas manufactured
6by gasification of hydrocarbon feedstock, which is
7substantially interchangeable in use and distribution with
8conventional natural gas.
9    "Total resource cost test" or "TRC test" means a standard
10that is met if, for an investment in energy efficiency or
11demand-response measures, the benefit-cost ratio is greater
12than one. The benefit-cost ratio is the ratio of the net
13present value of the total benefits of the program to the net
14present value of the total costs as calculated over the
15lifetime of the measures. A total resource cost test compares
16the sum of avoided electric utility costs, representing the
17benefits that accrue to the system and the participant in the
18delivery of those efficiency measures and including avoided
19costs associated with reduced use of natural gas or other
20fuels, avoided costs associated with reduced water
21consumption, and avoided costs associated with reduced
22operation and maintenance costs, as well as other quantifiable
23societal benefits, to the sum of all incremental costs of
24end-use measures that are implemented due to the program
25(including both utility and participant contributions), plus
26costs to administer, deliver, and evaluate each demand-side

 

 

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1program, to quantify the net savings obtained by substituting
2the demand-side program for supply resources. In calculating
3avoided costs of power and energy that an electric utility
4would otherwise have had to acquire, reasonable estimates
5shall be included of financial costs likely to be imposed by
6future regulations and legislation on emissions of greenhouse
7gases. In discounting future societal costs and benefits for
8the purpose of calculating net present values, a societal
9discount rate based on actual, long-term Treasury bond yields
10should be used. Notwithstanding anything to the contrary, the
11TRC test shall not include or take into account a calculation
12of market price suppression effects or demand reduction
13induced price effects.
14    "Utility-scale solar project" means an electric generating
15facility that:
16        (1) generates electricity using photovoltaic cells;
17    and
18        (2) has a nameplate capacity that is greater than
19    5,000 kilowatts.
20    "Utility-scale wind project" means an electric generating
21facility that:
22        (1) generates electricity using wind; and
23        (2) has a nameplate capacity that is greater than
24    5,000 kilowatts.
25    "Waste Heat to Power Systems" means systems that capture
26and generate electricity from energy that would otherwise be

 

 

SB1588- 20 -LRB103 28437 AMQ 54817 b

1lost to the atmosphere without the use of additional fuel.
2    "Zero emission credit" means a tradable credit that
3represents the environmental attributes of one megawatt hour
4of energy produced from a zero emission facility.
5    "Zero emission facility" means a facility that: (1) is
6fueled by nuclear power; and (2) is interconnected with PJM
7Interconnection, LLC or the Midcontinent Independent System
8Operator, Inc., or their successors.
9(Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
 
10    (20 ILCS 3855/1-75)
11    Sec. 1-75. Planning and Procurement Bureau. The Planning
12and Procurement Bureau has the following duties and
13responsibilities:
14    (a) The Planning and Procurement Bureau shall each year,
15beginning in 2008, develop procurement plans and conduct
16competitive procurement processes in accordance with the
17requirements of Section 16-111.5 of the Public Utilities Act
18for the eligible retail customers of electric utilities that
19on December 31, 2005 provided electric service to at least
20100,000 customers in Illinois. Beginning with the delivery
21year commencing on June 1, 2017, the Planning and Procurement
22Bureau shall develop plans and processes for the procurement
23of zero emission credits from zero emission facilities in
24accordance with the requirements of subsection (d-5) of this
25Section. Beginning on the effective date of this amendatory

 

 

SB1588- 21 -LRB103 28437 AMQ 54817 b

1Act of the 102nd General Assembly, the Planning and
2Procurement Bureau shall develop plans and processes for the
3procurement of carbon mitigation credits from carbon-free
4energy resources in accordance with the requirements of
5subsection (d-10) of this Section. The Planning and
6Procurement Bureau shall also develop procurement plans and
7conduct competitive procurement processes in accordance with
8the requirements of Section 16-111.5 of the Public Utilities
9Act for the eligible retail customers of small
10multi-jurisdictional electric utilities that (i) on December
1131, 2005 served less than 100,000 customers in Illinois and
12(ii) request a procurement plan for their Illinois
13jurisdictional load. This Section shall not apply to a small
14multi-jurisdictional utility until such time as a small
15multi-jurisdictional utility requests the Agency to prepare a
16procurement plan for their Illinois jurisdictional load. For
17the purposes of this Section, the term "eligible retail
18customers" has the same definition as found in Section
1916-111.5(a) of the Public Utilities Act.
20    Beginning with the plan or plans to be implemented in the
212017 delivery year, the Agency shall no longer include the
22procurement of renewable energy resources in the annual
23procurement plans required by this subsection (a), except as
24provided in subsection (q) of Section 16-111.5 of the Public
25Utilities Act, and shall instead develop a long-term renewable
26resources procurement plan in accordance with subsection (c)

 

 

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

 

 

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

 

 

SB1588- 24 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

SB1588- 26 -LRB103 28437 AMQ 54817 b

1    (b) The experts or expert consulting firms retained by the
2Agency shall, as appropriate, prepare procurement plans, and
3conduct a competitive procurement process as prescribed in
4Section 16-111.5 of the Public Utilities Act, to ensure
5adequate, reliable, affordable, efficient, and environmentally
6sustainable electric service at the lowest total cost over
7time, taking into account any benefits of price stability, for
8eligible retail customers of electric utilities that on
9December 31, 2005 provided electric service to at least
10100,000 customers in the State of Illinois, and for eligible
11Illinois retail customers of small multi-jurisdictional
12electric utilities that (i) on December 31, 2005 served less
13than 100,000 customers in Illinois and (ii) request a
14procurement plan for their Illinois jurisdictional load.
15    (c) Renewable portfolio standard.
16        (1)(A) The Agency shall develop a long-term renewable
17    resources procurement plan that shall include procurement
18    programs and competitive procurement events necessary to
19    meet the goals set forth in this subsection (c). The
20    initial long-term renewable resources procurement plan
21    shall be released for comment no later than 160 days after
22    June 1, 2017 (the effective date of Public Act 99-906).
23    The Agency shall review, and may revise on an expedited
24    basis, the long-term renewable resources procurement plan
25    at least every 2 years, which shall be conducted in
26    conjunction with the procurement plan under Section

 

 

SB1588- 27 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 28 -LRB103 28437 AMQ 54817 b

1    and delivery year 2040, if any, taking into account energy
2    demand, other energy resources, and other public policy
3    goals. In the event of a conflict between these goals and
4    the new wind and new photovoltaic procurement requirements
5    described in items (i) through (iii) of subparagraph (C)
6    of this paragraph (1), the long-term plan shall prioritize
7    compliance with the new wind and new photovoltaic
8    procurement requirements described in items (i) through
9    (iii) of subparagraph (C) of this paragraph (1) over the
10    annual percentage targets described in this subparagraph
11    (B). The Agency shall not comply with the annual
12    percentage targets described in this subparagraph (B) by
13    procuring renewable energy credits that are unlikely to
14    lead to the development of new renewable resources.
15        For the delivery year beginning June 1, 2017, the
16    procurement plan shall attempt to include, subject to the
17    prioritization outlined in this subparagraph (B),
18    cost-effective renewable energy resources equal to at
19    least 13% of each utility's load for eligible retail
20    customers and 13% of the applicable portion of each
21    utility's load for retail customers who are not eligible
22    retail customers, which applicable portion shall equal 50%
23    of the utility's load for retail customers who are not
24    eligible retail customers on February 28, 2017.
25        For the delivery year beginning June 1, 2018, the
26    procurement plan shall attempt to include, subject to the

 

 

SB1588- 29 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 30 -LRB103 28437 AMQ 54817 b

1    year under existing contracts. Any renewable energy
2    credits under existing contracts, including renewable
3    energy credits as part of renewable energy resources,
4    shall be used to meet the goals set forth in this
5    subsection (c) for the delivery year.
6        (C) The long-term renewable resources procurement plan
7    described in subparagraph (A) of this paragraph (1) shall
8    include the procurement of renewable energy credits from
9    new projects in amounts equal to at least the following:
10            (i) 10,000,000 renewable energy credits delivered
11        annually by the end of the 2021 delivery year, and
12        increasing ratably to reach 45,000,000 renewable
13        energy credits delivered annually from new wind and
14        solar projects by the end of delivery year 2030 such
15        that the goals in subparagraph (B) of this paragraph
16        (1) are met entirely by procurements of renewable
17        energy credits from new wind and photovoltaic
18        projects. Of that amount, to the extent possible, the
19        Agency shall procure 45% from wind projects and 55%
20        from photovoltaic projects. Of the amount to be
21        procured from photovoltaic projects, the Agency shall
22        procure: at least 50% from solar photovoltaic projects
23        using the program outlined in subparagraph (K) of this
24        paragraph (1) from distributed renewable energy
25        generation devices or community renewable generation
26        projects; at least 44% 47% from utility-scale solar

 

 

SB1588- 31 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 32 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 33 -LRB103 28437 AMQ 54817 b

1    procurement event, do not exceed benchmarks based on
2    market prices for like products in the region. For
3    purposes of this subsection (c), "like products" means
4    contracts for renewable energy credits from the same or
5    substantially similar technology, same or substantially
6    similar vintage (new or existing), the same or
7    substantially similar quantity, and the same or
8    substantially similar contract length and structure.
9    Benchmarks shall reflect development, financing, or
10    related costs resulting from requirements imposed through
11    other provisions of State law, including, but not limited
12    to, requirements in subparagraphs (P) and (Q) of this
13    paragraph (1) and the Renewable Energy Facilities
14    Agricultural Impact Mitigation Act. Confidential
15    benchmarks shall be developed by the procurement
16    administrator, in consultation with the Commission staff,
17    Agency staff, and the procurement monitor and shall be
18    subject to Commission review and approval. If price
19    benchmarks for like products in the region are not
20    available, the procurement administrator shall establish
21    price benchmarks based on publicly available data on
22    regional technology costs and expected current and future
23    regional energy prices. The benchmarks in this Section
24    shall not be used to curtail or otherwise reduce
25    contractual obligations entered into by or through the
26    Agency prior to June 1, 2017 (the effective date of Public

 

 

SB1588- 34 -LRB103 28437 AMQ 54817 b

1    Act 99-906).
2        (E) For purposes of this subsection (c), the required
3    procurement of cost-effective renewable energy resources
4    for a particular year commencing prior to June 1, 2017
5    shall be measured as a percentage of the actual amount of
6    electricity (megawatt-hours) supplied by the electric
7    utility to eligible retail customers in the delivery year
8    ending immediately prior to the procurement, and, for
9    delivery years commencing on and after June 1, 2017, the
10    required procurement of cost-effective renewable energy
11    resources for a particular year shall be measured as a
12    percentage of the actual amount of electricity
13    (megawatt-hours) delivered by the electric utility in the
14    delivery year ending immediately prior to the procurement,
15    to all retail customers in its service territory. For
16    purposes of this subsection (c), the amount paid per
17    kilowatthour means the total amount paid for electric
18    service expressed on a per kilowatthour basis. For
19    purposes of this subsection (c), the total amount paid for
20    electric service includes without limitation amounts paid
21    for supply, transmission, capacity, distribution,
22    surcharges, and add-on taxes.
23        Notwithstanding the requirements of this subsection
24    (c), the total of renewable energy resources procured
25    under the procurement plan for any single year shall be
26    subject to the limitations of this subparagraph (E). Such

 

 

SB1588- 35 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 36 -LRB103 28437 AMQ 54817 b

1    Section.
2        (F) If the limitation on the amount of renewable
3    energy resources procured in subparagraph (E) of this
4    paragraph (1) prevents the Agency from meeting all of the
5    goals in this subsection (c), the Agency's long-term plan
6    shall prioritize compliance with the requirements of this
7    subsection (c) regarding renewable energy credits in the
8    following order:
9            (i) renewable energy credits under existing
10        contractual obligations as of June 1, 2021;
11            (i-5) funding for the Illinois Solar for All
12        Program, as described in subparagraph (O) of this
13        paragraph (1);
14            (ii) renewable energy credits necessary to comply
15        with the new wind and new photovoltaic procurement
16        requirements described in items (i) through (iii) of
17        subparagraph (C) of this paragraph (1); and
18            (iii) renewable energy credits necessary to meet
19        the remaining requirements of this subsection (c).
20        (G) The following provisions shall apply to the
21    Agency's procurement of renewable energy credits under
22    this subsection (c):
23            (i) Notwithstanding whether a long-term renewable
24        resources procurement plan has been approved, the
25        Agency shall conduct an initial forward procurement
26        for renewable energy credits from new utility-scale

 

 

SB1588- 37 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 38 -LRB103 28437 AMQ 54817 b

1        of this initial forward procurement, the Agency shall
2        solicit 15-year contracts for delivery of 1,000,000
3        renewable energy credits delivered annually from new
4        utility-scale solar projects and brownfield site
5        photovoltaic projects to begin delivery on June 1,
6        2019, if available, but not later than June 1, 2021,
7        unless the project has delays in the establishment of
8        an operating interconnection with the applicable
9        transmission or distribution system as a result of the
10        actions or inactions of the transmission or
11        distribution provider, or other causes for force
12        majeure as outlined in the procurement contract, in
13        which case, not later than June 1, 2022. The Agency may
14        structure this initial procurement in one or more
15        discrete procurement events. Payments to suppliers of
16        renewable energy credits shall commence upon delivery.
17        Renewable energy credits procured under this initial
18        procurement shall be included in the Agency's
19        long-term plan and shall apply to all renewable energy
20        goals in this subsection (c).
21            (iii) Notwithstanding whether the Commission has
22        approved the periodic long-term renewable resources
23        procurement plan revision described in Section
24        16-111.5 of the Public Utilities Act, the Agency shall
25        conduct at least one subsequent forward procurement
26        for renewable energy credits from new utility-scale

 

 

SB1588- 39 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 40 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

SB1588- 42 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 43 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

SB1588- 45 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 46 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

SB1588- 48 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 49 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 50 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 51 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 52 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 53 -LRB103 28437 AMQ 54817 b

1            indexed REC procurements shall be proposed by the
2            Agency through its long-term renewable resources
3            procurement plan.
4            (vi) All procurements under this subparagraph (G)
5        shall comply with the geographic requirements in
6        subparagraph (I) of this paragraph (1) and shall
7        follow the procurement processes and procedures
8        described in this Section and Section 16-111.5 of the
9        Public Utilities Act to the extent practicable, and
10        these processes and procedures may be expedited to
11        accommodate the schedule established by this
12        subparagraph (G).
13        (H) The procurement of renewable energy resources for
14    a given delivery year shall be reduced as described in
15    this subparagraph (H) if an alternative retail electric
16    supplier meets the requirements described in this
17    subparagraph (H).
18            (i) Within 45 days after June 1, 2017 (the
19        effective date of Public Act 99-906), an alternative
20        retail electric supplier or its successor shall submit
21        an informational filing to the Illinois Commerce
22        Commission certifying that, as of December 31, 2015,
23        the alternative retail electric supplier owned one or
24        more electric generating facilities that generates
25        renewable energy resources as defined in Section 1-10
26        of this Act, provided that such facilities are not

 

 

SB1588- 54 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 55 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 56 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 57 -LRB103 28437 AMQ 54817 b

1        metered electricity (megawatt-hours) delivered by the
2        alternative retail supplier in that delivery year,
3        provided that the 14.5% shall increase by 1.5% each
4        delivery year thereafter to 25% by the delivery year
5        beginning June 1, 2025, and thereafter the 25% value
6        shall apply to each delivery year.
7            On or before April 1 of each year, the Agency shall
8        annually publish a report on its website that
9        identifies the aggregate amount of renewable energy
10        credits supplied by alternative retail electric
11        suppliers under this subparagraph (H).
12        (I) The Agency shall design its long-term renewable
13    energy procurement plan to maximize the State's interest
14    in the health, safety, and welfare of its residents,
15    including but not limited to minimizing sulfur dioxide,
16    nitrogen oxide, particulate matter and other pollution
17    that adversely affects public health in this State,
18    increasing fuel and resource diversity in this State,
19    enhancing the reliability and resiliency of the
20    electricity distribution system in this State, meeting
21    goals to limit carbon dioxide emissions under federal or
22    State law, and contributing to a cleaner and healthier
23    environment for the citizens of this State. In order to
24    further these legislative purposes, renewable energy
25    credits shall be eligible to be counted toward the
26    renewable energy requirements of this subsection (c) if

 

 

SB1588- 58 -LRB103 28437 AMQ 54817 b

1    they are generated from facilities located in this State.
2    The Agency may qualify renewable energy credits from
3    facilities located in states adjacent to Illinois or
4    renewable energy credits associated with the electricity
5    generated by a utility-scale wind energy facility or
6    utility-scale photovoltaic facility and transmitted by a
7    qualifying direct current project described in subsection
8    (b-5) of Section 8-406 of the Public Utilities Act to a
9    delivery point on the electric transmission grid located
10    in this State or a state adjacent to Illinois, if the
11    generator demonstrates and the Agency determines that the
12    operation of such facility or facilities will help promote
13    the State's interest in the health, safety, and welfare of
14    its residents based on the public interest criteria
15    described above. For the purposes of this Section,
16    renewable resources that are delivered via a high voltage
17    direct current converter station located in Illinois shall
18    be deemed generated in Illinois at the time and location
19    the energy is converted to alternating current by the high
20    voltage direct current converter station if the high
21    voltage direct current transmission line: (i) after the
22    effective date of this amendatory Act of the 102nd General
23    Assembly, was constructed with a project labor agreement;
24    (ii) is capable of transmitting electricity at 525kv;
25    (iii) has an Illinois converter station located and
26    interconnected in the region of the PJM Interconnection,

 

 

SB1588- 59 -LRB103 28437 AMQ 54817 b

1    LLC; (iv) does not operate as a public utility; and (v) if
2    the high voltage direct current transmission line was
3    energized after June 1, 2023. To ensure that the public
4    interest criteria are applied to the procurement and given
5    full effect, the Agency's long-term procurement plan shall
6    describe in detail how each public interest factor shall
7    be considered and weighted for facilities located in
8    states adjacent to Illinois.
9        (J) In order to promote the competitive development of
10    renewable energy resources in furtherance of the State's
11    interest in the health, safety, and welfare of its
12    residents, renewable energy credits shall not be eligible
13    to be counted toward the renewable energy requirements of
14    this subsection (c) if they are sourced from a generating
15    unit whose costs were being recovered through rates
16    regulated by this State or any other state or states on or
17    after January 1, 2017. Each contract executed to purchase
18    renewable energy credits under this subsection (c) shall
19    provide for the contract's termination if the costs of the
20    generating unit supplying the renewable energy credits
21    subsequently begin to be recovered through rates regulated
22    by this State or any other state or states; and each
23    contract shall further provide that, in that event, the
24    supplier of the credits must return 110% of all payments
25    received under the contract. Amounts returned under the
26    requirements of this subparagraph (J) shall be retained by

 

 

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

 

 

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

 

 

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

 

 

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1        energy generation devices with a nameplate capacity of
2        more than 25 kilowatts and no more than 5,000
3        kilowatts. The Agency may create sub-categories within
4        this category to account for the differences between
5        projects for small commercial customers, large
6        commercial customers, and public or non-profit
7        customers.
8            (iii) At least 30% from photovoltaic community
9        renewable generation projects. Capacity for this
10        category for the first 2 delivery years after the
11        effective date of this amendatory Act of the 102nd
12        General Assembly shall be allocated to waitlist
13        projects as provided in paragraph (3) of item (iv) of
14        subparagraph (G). Starting in the third delivery year
15        after the effective date of this amendatory Act of the
16        102nd General Assembly or earlier if the Agency
17        determines there is additional capacity needed for to
18        meet previous delivery year requirements, the
19        following shall apply:
20                (1) the Agency shall select projects on a
21            first-come, first-serve basis, however the Agency
22            may suggest additional methods to prioritize
23            projects that are submitted at the same time;
24                (2) projects shall have subscriptions of 25 kW
25            or less for at least 50% of the facility's
26            nameplate capacity and the Agency shall price the

 

 

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

 

 

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1        applicable to the procurement as indicated herein. In
2        each such update and procurement, the Agency shall set
3        the renewable energy credit price and establish
4        payment terms for the renewable energy credits
5        procured pursuant to this subparagraph (iv) that make
6        it feasible and affordable for public schools to
7        install photovoltaic distributed renewable energy
8        devices on their premises, including, but not limited
9        to, those public schools subject to the prioritization
10        provisions of this subparagraph. For the purposes of
11        this item (iv):
12            "Environmental Justice Community" shall have the
13        same meaning set forth in the Agency's long-term
14        renewable resources procurement plan;
15            "Organization Unit", "Tier 1" and "Tier 2" shall
16        have the meanings set for in Section 18-8.15 of the
17        School Code;
18            "Public schools" shall have the meaning set forth
19        in Section 1-3 of the School Code.
20            (v) At least 5% from community-driven community
21        solar projects intended to provide more direct and
22        tangible connection and benefits to the communities
23        which they serve or in which they operate and,
24        additionally, to increase the variety of community
25        solar locations, models, and options in Illinois. As
26        part of its long-term renewable resources procurement

 

 

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1        plan, the Agency shall develop selection criteria for
2        projects participating in this category. Nothing in
3        this Section shall preclude the Agency from creating a
4        selection process that maximizes community ownership
5        and community benefits in selecting projects to
6        receive renewable energy credits. Selection criteria
7        shall include:
8                (1) community ownership or community
9            wealth-building;
10                (2) additional direct and indirect community
11            benefit, beyond project participation as a
12            subscriber, including, but not limited to,
13            economic, environmental, social, cultural, and
14            physical benefits;
15                (3) meaningful involvement in project
16            organization and development by community members
17            or nonprofit organizations or public entities
18            located in or serving the community;
19                (4) engagement in project operations and
20            management by nonprofit organizations, public
21            entities, or community members; and
22                (5) whether a project is developed in response
23            to a site-specific RFP developed by community
24            members or a nonprofit organization or public
25            entity located in or serving the community.
26            Selection criteria may also prioritize projects

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1588- 75 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 76 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 77 -LRB103 28437 AMQ 54817 b

1        incorporate this limitation.
2            (ix) Notwithstanding other requirements of this
3        subparagraph (L), no modification shall be required to
4        Adjustable Block program contracts if they were
5        already executed prior to the establishment, approval,
6        and implementation of new contract forms as a result
7        of this amendatory Act of the 102nd General Assembly.
8            (x) Contracts may be assignable, but only to
9        entities first deemed by the Agency to have met
10        program terms and requirements applicable to direct
11        program participation. In developing contracts for the
12        delivery of renewable energy credits, the Agency shall
13        be permitted to establish fees applicable to each
14        contract assignment.
15        (M) The Agency shall be authorized to retain one or
16    more experts or expert consulting firms to develop,
17    administer, implement, operate, and evaluate the
18    Adjustable Block program described in subparagraph (K) of
19    this paragraph (1), and the Agency shall retain the
20    consultant or consultants in the same manner, to the
21    extent practicable, as the Agency retains others to
22    administer provisions of this Act, including, but not
23    limited to, the procurement administrator. The selection
24    of experts and expert consulting firms and the procurement
25    process described in this subparagraph (M) are exempt from
26    the requirements of Section 20-10 of the Illinois

 

 

SB1588- 78 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    output from QFs under Public Utilities Regulatory Policies
2    Act of 1978.
3        The owners of and any subscribers to a community
4    renewable generation project shall not be considered
5    public utilities or alternative retail electricity
6    suppliers under the Public Utilities Act solely as a
7    result of their interest in or subscription to a community
8    renewable generation project and shall not be required to
9    become an alternative retail electric supplier by
10    participating in a community renewable generation project
11    with a public utility.
12        (O) For the delivery year beginning June 1, 2018, the
13    long-term renewable resources procurement plan required by
14    this subsection (c) shall provide for the Agency to
15    procure contracts to continue offering the Illinois Solar
16    for All Program described in subsection (b) of Section
17    1-56 of this Act, and the contracts approved by the
18    Commission shall be executed by the utilities that are
19    subject to this subsection (c). The long-term renewable
20    resources procurement plan shall allocate up to
21    $50,000,000 per delivery year to fund the programs, and
22    the plan shall determine the amount of funding to be
23    apportioned to the programs identified in subsection (b)
24    of Section 1-56 of this Act; provided that for the
25    delivery years beginning June 1, 2021, June 1, 2022, and
26    June 1, 2023, the long-term renewable resources

 

 

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1    procurement plan may average the annual budgets over a
2    3-year period to account for program ramp-up. For the
3    delivery years beginning June 1, 2021, June 1, 2024, June
4    1, 2027, and June 1, 2030 and additional $10,000,000 shall
5    be provided to the Department of Commerce and Economic
6    Opportunity to implement the workforce development
7    programs and reporting as outlined in Section 16-108.12 of
8    the Public Utilities Act. In making the determinations
9    required under this subparagraph (O), the Commission shall
10    consider the experience and performance under the programs
11    and any evaluation reports. The Commission shall also
12    provide for an independent evaluation of those programs on
13    a periodic basis that are funded under this subparagraph
14    (O).
15        (P) All programs and procurements under this
16    subsection (c) shall be designed to encourage
17    participating projects to use a diverse and equitable
18    workforce and a diverse set of contractors, including
19    minority-owned businesses, disadvantaged businesses,
20    trade unions, graduates of any workforce training programs
21    administered under this Act, and small businesses.
22        The Agency shall develop a method to optimize
23    procurement of renewable energy credits from proposed
24    utility-scale projects that are located in communities
25    eligible to receive Energy Transition Community Grants
26    pursuant to Section 10-20 of the Energy Community

 

 

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

 

 

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1        than the general prevailing rate, as that term is
2        defined in Section 3 of the Prevailing Wage Act. For
3        purposes of this item (1), "house of worship" means
4        property that is both (1) used exclusively by a
5        religious society or body of persons as a place for
6        religious exercise or religious worship and (2)
7        recognized as exempt from taxation pursuant to Section
8        15-40 of the Property Tax Code. This item (1) shall
9        apply to any the following:
10                (i) all new utility-scale wind projects;
11                (ii) all new utility-scale photovoltaic
12            projects;
13                (iii) all new brownfield photovoltaic
14            projects;
15                (iv) all new photovoltaic community renewable
16            energy facilities that qualify for item (iii) of
17            subparagraph (K) of this paragraph (1);
18                (v) all new community driven community
19            photovoltaic projects that qualify for item (v) of
20            subparagraph (K) of this paragraph (1);
21                (vi) all new photovoltaic distributed
22            renewable energy generation devices on schools
23            that qualify for item (iv) of subparagraph (K) of
24            this paragraph (1);
25                (vii) all new photovoltaic distributed
26            renewable energy generation devices that (1)

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    established pursuant to subsection (d) of Section 16-115D
2    of the Public Utilities Act to its retail customers that
3    take service pursuant to the electric utility's hourly
4    pricing tariff or tariffs. The electric utility shall
5    retain all amounts collected as a result of the
6    application of the alternative compliance payment rate or
7    rates to such customers, and, beginning in 2011, the
8    utility shall include in the information provided under
9    item (1) of subsection (d) of Section 16-111.5 of the
10    Public Utilities Act the amounts collected under the
11    alternative compliance payment rate or rates for the prior
12    year ending May 31. Notwithstanding any limitation on the
13    procurement of renewable energy resources imposed by item
14    (2) of this subsection (c), the Agency shall increase its
15    spending on the purchase of renewable energy resources to
16    be procured by the electric utility for the next plan year
17    by an amount equal to the amounts collected by the utility
18    under the alternative compliance payment rate or rates in
19    the prior year ending May 31.
20        (6) The electric utility shall be entitled to recover
21    all of its costs associated with the procurement of
22    renewable energy credits under plans approved under this
23    Section and Section 16-111.5 of the Public Utilities Act.
24    These costs shall include associated reasonable expenses
25    for implementing the procurement programs, including, but
26    not limited to, the costs of administering and evaluating

 

 

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

 

 

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

 

 

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

 

 

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1    which shall begin no later than 30 days prior to the
2    scheduled date for the procurement event, during which
3    applicants may submit applications to be selected as
4    suppliers of renewable energy credits pursuant to this
5    subsection (c-5). The eligibility criteria for selection
6    as a supplier of renewable energy credits pursuant to this
7    subsection (c-5) shall be as follows:
8            (A) The applicant owns an electric generating
9        facility located in this State that: (i) as of January
10        1, 2016, burned coal as its primary fuel to generate
11        electricity; and (ii) has, or had prior to retirement,
12        an electric generating capacity of at least 150
13        megawatts. The electric generating facility can be
14        either: (i) retired as of the date of the procurement
15        event; or (ii) still operating as of the date of the
16        procurement event.
17            (B) The applicant is not (i) an electric
18        cooperative as defined in Section 3-119 of the Public
19        Utilities Act, or (ii) an entity described in
20        subsection (b)(1) of Section 3-105 of the Public
21        Utilities Act, or an association or consortium of or
22        an entity owned by entities described in (i) or (ii);
23        and the coal-fueled electric generating facility was
24        at one time owned, in whole or in part, by a public
25        utility as defined in Section 3-105 of the Public
26        Utilities Act.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            as defined in Section 3-119 of the Public
2            Utilities Act, or (ii) an entity described in
3            subsection (b)(1) of Section 3-105 of the Public
4            Utilities Act, or an association or consortium of
5            or an entity owned by entities described in items
6            (i) or (ii);
7                (7) the proposed energy storage facility at
8            the site will have energy storage capacity of at
9            least 37 megawatts;
10                (8) the owner commits to place the energy
11            storage facility into commercial operation on
12            either June 1, 2023, June 1, 2024, or June 1, 2025,
13            with such date subject to adjustment as needed due
14            to any delays in completing the grant contracting
15            process, in finalizing interconnection agreements
16            and in installing interconnection facilities, and
17            in obtaining necessary governmental permits and
18            approvals;
19                (9) the owner agrees that the new energy
20            storage facility will be constructed or installed
21            by a qualified entity or entities consistent with
22            the requirements of subsection (g) of Section
23            16-128A of the Public Utilities Act and any rules
24            adopted under that Section;
25                (10) the owner agrees that personnel operating
26            the energy storage facility will have the

 

 

SB1588- 116 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

SB1588- 118 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

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

 

 

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

 

 

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1        reporting requirements of Section 5-117 of the Public
2        Utilities Act.
3    (c-10) Equity accountability system. It is the purpose of
4this subsection (c-10) to create an equity accountability
5system, which includes the minimum equity standards for all
6renewable energy procurements, the equity category of the
7Adjustable Block Program, and the equity prioritization for
8noncompetitive procurements, that is successful in advancing
9priority access to the clean energy economy for businesses and
10workers from communities that have been excluded from economic
11opportunities in the energy sector, have been subject to
12disproportionate levels of pollution, and have
13disproportionately experienced negative public health
14outcomes. Further, it is the purpose of this subsection to
15ensure that this equity accountability system is successful in
16advancing equity across Illinois by providing access to the
17clean energy economy for businesses and workers from
18communities that have been historically excluded from economic
19opportunities in the energy sector, have been subject to
20disproportionate levels of pollution, and have
21disproportionately experienced negative public health
22outcomes.
23        (1) Minimum equity standards. The Agency shall create
24    programs with the purpose of increasing access to and
25    development of equity eligible contractors, who are prime
26    contractors and subcontractors, across all of the programs

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1588- 136 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            facility and not covered by a sourcing agreement
2            pursuant to paragraph (3) of this subsection (d)
3            or item (5) of subsection (d) of Section 16-115 of
4            the Public Utilities Act, whether generated from
5            the synthesis gas derived from coal, from SNG, or
6            from natural gas, shall be credited against the
7            revenue requirement for this initial clean coal
8            facility;
9            (B) power purchase provisions, which shall:
10                (i) provide that the utility party to such
11            sourcing agreement shall pay the contract price
12            for electricity delivered under such sourcing
13            agreement;
14                (ii) require delivery of electricity to the
15            regional transmission organization market of the
16            utility that is party to such sourcing agreement;
17                (iii) require the utility party to such
18            sourcing agreement to buy from the initial clean
19            coal facility in each hour an amount of energy
20            equal to all clean coal energy made available from
21            the initial clean coal facility during such hour
22            times a fraction, the numerator of which is such
23            utility's retail market sales of electricity
24            (expressed in kilowatthours sold) 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 purchased by the utility
10            in any year will be limited by paragraph (2) of
11            this subsection (d); and
12                (iv) be considered pre-existing contracts in
13            such utility's procurement plans for eligible
14            retail customers;
15            (C) contract for differences provisions, which
16        shall:
17                (i) require the utility party to such sourcing
18            agreement to contract with the initial clean coal
19            facility in each hour with respect to an amount of
20            energy equal to all clean coal energy made
21            available from the initial clean coal facility
22            during such hour times a fraction, the numerator
23            of which is such utility's retail market sales of
24            electricity (expressed in kilowatthours sold) in
25            the utility's service territory in the State
26            during the prior calendar month and the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1588- 148 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 149 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 150 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 151 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 152 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 153 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 154 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 155 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 156 -LRB103 28437 AMQ 54817 b

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

 

 

SB1588- 157 -LRB103 28437 AMQ 54817 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        notice and hearing, but no later than 45 days after the
2        Agency filed the plan, approve the plan or approve
3        with modification. For purposes of this subsection
4        (d-5), "cost effective" means the projected costs of
5        procuring zero emission credits from zero emission
6        facilities do not cause the limit stated in paragraph
7        (2) of this subsection to be exceeded.
8            (C-5) As part of the Commission's review and
9        acceptance or rejection of the procurement results,
10        the Commission shall, in its public notice of
11        successful bidders:
12                (i) identify how the winning bids satisfy the
13            public interest criteria described in subparagraph
14            (C) of this paragraph (1) of minimizing carbon
15            dioxide emissions that result from electricity
16            consumed in Illinois and minimizing sulfur
17            dioxide, nitrogen oxide, and particulate matter
18            emissions that adversely affect the citizens of
19            this State;
20                (ii) specifically address how the selection of
21            winning bids takes into account the incremental
22            environmental benefits resulting from the
23            procurement, including any existing environmental
24            benefits that are preserved by the procurements
25            held under Public Act 99-906 and would have ceased
26            to exist if the procurements had not been held,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    100% clean energy and decarbonizing the electricity sector
2    in a safe, reliable, and affordable manner. Further, the
3    procurement of carbon emission credits will enhance the
4    health and welfare of Illinois residents through decreased
5    reliance on more highly polluting generation.
6        (I) The General Assembly therefore finds it necessary
7    to establish carbon mitigation credits to ensure decreased
8    reliance on more carbon-intensive energy resources, for
9    transitioning to a fully decarbonized electricity sector,
10    and to help ensure health and welfare of the State's
11    residents.
12    (2) As used in this subsection:
13    "Baseline costs" means costs used to establish a customer
14protection cap that have been evaluated through an independent
15audit of a carbon-free energy resource conducted by the
16Environmental Protection Agency that evaluated projected
17annual costs for operation and maintenance expenses; fully
18allocated overhead costs, which shall be allocated using the
19methodology developed by the Institute for Nuclear Power
20Operations; fuel expenditures; nonfuel capital expenditures;
21spent fuel expenditures; a return on working capital; the cost
22of operational and market risks that could be avoided by
23ceasing operation; and any other costs necessary for continued
24operations, provided that "necessary" means, for purposes of
25this definition, that the costs could reasonably be avoided
26only by ceasing operations of the carbon-free energy resource.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    comments received and file its carbon mitigation credit
2    procurement plan with the Commission.
3        (E) If the Commission determines that the plan is
4    likely to result in the procurement of cost-effective
5    carbon mitigation credits, then the Commission shall,
6    after notice and hearing and opportunity for comment, but
7    no later than 42 days after the Agency filed the plan,
8    approve the plan or approve it with modification. For
9    purposes of this subsection (d-10), "cost-effective" means
10    carbon mitigation credits that are procured from
11    carbon-free energy resources at prices that are within the
12    limits specified in this paragraph (3). As part of the
13    Commission's review and acceptance or rejection of the
14    procurement results, the Commission shall, in its public
15    notice of successful bidders:
16            (i) identify how the selected carbon-free energy
17        resources satisfy the public interest criteria
18        described in this paragraph (3) of minimizing carbon
19        dioxide emissions that result from electricity