Illinois General Assembly - Full Text of HB2427
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Full Text of HB2427  98th General Assembly




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1    AN ACT concerning public utilities.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-56 as follows:
6    (20 ILCS 3855/1-56)
7    Sec. 1-56. Illinois Power Agency Renewable Energy
8Resources Fund.
9    (a) The Illinois Power Agency Renewable Energy Resources
10Fund is created as a special fund in the State treasury.
11    (b) The Illinois Power Agency Renewable Energy Resources
12Fund shall be administered by the Agency to procure renewable
13energy resources. Prior to June 1, 2011, resources procured
14pursuant to this Section shall be procured from facilities
15located in Illinois, provided the resources are available from
16those facilities. If resources are not available in Illinois,
17then they shall be procured in states that adjoin Illinois. If
18resources are not available in Illinois or in states that
19adjoin Illinois, then they may be purchased elsewhere.
20Beginning June 1, 2011, resources procured pursuant to this
21Section shall be procured from facilities located in Illinois
22or states that adjoin Illinois. If resources are not available
23in Illinois or in states that adjoin Illinois, then they may be



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1procured elsewhere. To the extent available, at least 75% of
2these renewable energy resources shall come from wind
3generation. Of the renewable energy resources procured
4pursuant to this Section at least the following specified
5percentages shall come from photovoltaics on the following
6schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by
7June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the
8renewable energy resources procured pursuant to this Section,
9at least the following percentages shall come from distributed
10renewable energy generation devices: 0.5% by June 1, 2013,
110.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter.
12To the extent available, half of the renewable energy resources
13procured from distributed renewable energy generation shall
14come from devices of less than 25 kilowatts in nameplate
15capacity. Renewable energy resources procured from distributed
16generation devices may also count towards the required
17percentages for wind and solar photovoltaics. Procurement of
18renewable energy resources from distributed renewable energy
19generation devices shall be done on an annual basis through
20multi-year contracts of no less than 5 years, and shall consist
21solely of renewable energy credits.
22    The Agency shall create credit requirements for suppliers
23of distributed renewable energy. In order to minimize the
24administrative burden on contracting entities, the Agency
25shall solicit the use of third-party organizations to aggregate
26distributed renewable energy into groups of no less than one



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1megawatt in installed capacity. These third-party
2organizations shall administer contracts with individual
3distributed renewable energy generation device owners. An
4individual distributed renewable energy generation device
5owner shall have the ability to measure the output of his or
6her distributed renewable energy generation device.
7    (c) The Agency shall procure renewable energy resources at
8least once each year in conjunction with a procurement event
9for electric utilities required to comply with Section 1-75 of
10the Act and shall, whenever possible, enter into long-term
11contracts on an annual basis for a portion of the incremental
12requirement for the given procurement year.
13    (d) The price paid to procure renewable energy credits
14using monies from the Illinois Power Agency Renewable Energy
15Resources Fund shall not exceed the winning bid prices paid for
16like resources procured for electric utilities required to
17comply with Section 1-75 of this Act.
18    (e) All renewable energy credits procured using monies from
19the Illinois Power Agency Renewable Energy Resources Fund shall
20be permanently retired.
21    (f) The procurement process described in this Section is
22exempt from the requirements of the Illinois Procurement Code,
23pursuant to Section 20-10 of that Code.
24    (g) All disbursements from the Illinois Power Agency
25Renewable Energy Resources Fund shall be made only upon
26warrants of the Comptroller drawn upon the Treasurer as



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1custodian of the Fund upon vouchers signed by the Director or
2by the person or persons designated by the Director for that
3purpose. The Comptroller is authorized to draw the warrant upon
4vouchers so signed. The Treasurer shall accept all warrants so
5signed and shall be released from liability for all payments
6made on those warrants.
7    (h) The Illinois Power Agency Renewable Energy Resources
8Fund shall not be subject to sweeps, administrative charges, or
9chargebacks, including, but not limited to, those authorized
10under Section 8h of the State Finance Act, that would in any
11way result in the transfer of any funds from this Fund to any
12other fund of this State or in having any such funds utilized
13for any purpose other than the express purposes set forth in
14this Section.
15    (i) Supplemental procurement process.
16        (1) Within 90 days after the effective date of this
17    amendatory Act of the 98th General Assembly, the Agency
18    shall develop a one-time supplemental procurement plan
19    limited to the procurement of renewable energy credits, if
20    available, from new or existing photovoltaics, including,
21    but not limited to, distributed photovoltaic generation.
22    Nothing in this subsection (i) requires procurement of wind
23    generation through the supplemental procurement.
24        Renewable energy credits procured from new
25    photovoltaics, including, but not limited to, distributed
26    photovoltaic generation, under this subsection (i) must be



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1    procured from devices installed by a qualified person. In
2    its supplemental procurement plan, the Agency shall
3    establish contractually enforceable mechanisms for
4    ensuring that the installation of new photovoltaics is
5    performed by a qualified person.
6        For the purposes of this paragraph (1), "qualified
7    person" means a person who performs installations of
8    photovoltaics, including, but not limited to, distributed
9    photovoltaic generation, and who: (A) has completed an
10    apprenticeship as a journeyman electrician from a United
11    States Department of Labor registered electrical
12    apprenticeship and training program and received a
13    certification of satisfactory completion; or (B) does not
14    currently meet the criteria under clause (A) of this
15    paragraph (1), but is enrolled in a United States
16    Department of Labor registered electrical apprenticeship
17    program, provided that the person is directly supervised by
18    a person who meets the criteria under clause (A) of this
19    paragraph (1); or (C) has obtained one of the following
20    credentials in addition to attesting to satisfactory
21    completion of at least 5 years or 8,000 hours of documented
22    hands-on electrical experience: (i) a North American Board
23    of Certified Energy Practitioners (NABCEP) Installer
24    Certificate for Solar PV; (ii) an Underwriters
25    Laboratories (UL) PV Systems Installer Certificate; (iii)
26    an Electronics Technicians Association, International



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1    (ETAI) Level 3 PV Installer Certificate; or (iv) an
2    Associate in Applied Science degree from an Illinois
3    Community College Board approved community college program
4    in renewable energy or a distributed generation
5    technology.
6        For the purposes of this paragraph (1), "directly
7    supervised" means that there is a qualified person who
8    meets the qualifications under clause (A) of this paragraph
9    (1) and who is available for supervision and consultation
10    regarding the work performed by persons under clause (B) of
11    this paragraph (1), including a final inspection of the
12    installation work that has been directly supervised to
13    ensure safety and conformity with applicable codes.
14        For the purposes of this paragraph (1), "install" means
15    the major activities and actions required to connect, in
16    accordance with applicable building and electrical codes,
17    the conductors, connectors, and all associated fittings,
18    devices, power outlets, or apparatuses mounted at the
19    premises that are directly involved in delivering energy to
20    the premises' electrical wiring from the photovoltaics,
21    including, but not limited to, to distributed photovoltaic
22    generation.
23        The renewable energy credits procured pursuant to the
24    supplemental procurement plan shall be procured using up to
25    $30,000,000 from the Illinois Power Agency Renewable
26    Energy Resources Fund. The Agency shall not plan to use



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1    funds from the Illinois Power Agency Renewable Energy
2    Resources Fund in excess of the monies on deposit in such
3    fund or projected to be deposited into such fund. The
4    supplemental procurement plan shall ensure adequate,
5    reliable, affordable, efficient, and environmentally
6    sustainable renewable energy resources (including credits)
7    at the lowest total cost over time, taking into account any
8    benefits of price stability.
9        To the extent available, 50% of the renewable energy
10    credits procured from distributed renewable energy
11    generation shall come from devices of less than 25
12    kilowatts in nameplate capacity. Procurement of renewable
13    energy credits from distributed renewable energy
14    generation devices shall be done through multi-year
15    contracts of no less than 5 years. The Agency shall create
16    credit requirements for counterparties. In order to
17    minimize the administrative burden on contracting
18    entities, the Agency shall solicit the use of third parties
19    to aggregate distributed renewable energy. These third
20    parties shall enter into and administer contracts with
21    individual distributed renewable energy generation device
22    owners. An individual distributed renewable energy
23    generation device owner shall have the ability to measure
24    the output of his or her distributed renewable energy
25    generation device.
26        In developing the supplemental procurement plan, the



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1    Agency shall hold at least one workshop open to the public
2    within 90 days after the effective date of this amendatory
3    Act of the 98th General Assembly and shall consider any
4    comments made by stakeholders or the public. Upon
5    development of the supplemental procurement plan within
6    this 90-day period, copies of the supplemental procurement
7    plan shall be posted and made publicly available on the
8    Agency's and Commission's websites. All interested parties
9    shall have 14 days following the date of posting to provide
10    comment to the Agency on the supplemental procurement plan.
11    All comments submitted to the Agency shall be specific,
12    supported by data or other detailed analyses, and, if
13    objecting to all or a portion of the supplemental
14    procurement plan, accompanied by specific alternative
15    wording or proposals. All comments shall be posted on the
16    Agency's and Commission's websites. Within 14 days
17    following the end of the 14-day review period, the Agency
18    shall revise the supplemental procurement plan as
19    necessary based on the comments received and file its
20    revised supplemental procurement plan with the Commission
21    for approval.
22        (2) Within 5 days after the filing of the supplemental
23    procurement plan at the Commission, any person objecting to
24    the supplemental procurement plan shall file an objection
25    with the Commission. Within 10 days after the filing, the
26    Commission shall determine whether a hearing is necessary.



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1    The Commission shall enter its order confirming or
2    modifying the supplemental procurement plan within 90 days
3    after the filing of the supplemental procurement plan by
4    the Agency.
5        (3) The Commission shall approve the supplemental
6    procurement plan of renewable energy credits to be procured
7    from new or existing photovoltaics, including, but not
8    limited to, distributed photovoltaic generation, if the
9    Commission determines that it will ensure adequate,
10    reliable, affordable, efficient, and environmentally
11    sustainable electric service in the form of renewable
12    energy credits at the lowest total cost over time, taking
13    into account any benefits of price stability.
14        (4) The supplemental procurement process under this
15    subsection (i) shall include each of the following
16    components:
17            (A) Procurement administrator. The Agency may
18        retain a procurement administrator in the manner set
19        forth in item (2) of subsection (a) of Section 1-75 of
20        this Act to conduct the supplemental procurement or may
21        elect to use the same procurement administrator
22        administering the Agency's annual procurement under
23        Section 1-75.
24            (B) Procurement monitor. The procurement monitor
25        retained by the Commission pursuant to Section
26        16-111.5 of the Public Utilities Act shall:



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1                (i) monitor interactions among the procurement
2            administrator and bidders and suppliers;
3                (ii) monitor and report to the Commission on
4            the progress of the supplemental procurement
5            process;
6                (iii) provide an independent confidential
7            report to the Commission regarding the results of
8            the procurement events;
9                (iv) assess compliance with the procurement
10            plan approved by the Commission for the
11            supplemental procurement process;
12                (v) preserve the confidentiality of supplier
13            and bidding information in a manner consistent
14            with all applicable laws, rules, regulations, and
15            tariffs;
16                (vi) provide expert advice to the Commission
17            and consult with the procurement administrator
18            regarding issues related to procurement process
19            design, rules, protocols, and policy-related
20            matters;
21                (vii) consult with the procurement
22            administrator regarding the development and use of
23            benchmark criteria, standard form contracts,
24            credit policies, and bid documents; and
25                (viii) perform, with respect to the
26            supplemental procurement process, any other



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1            procurement monitor duties specifically delineated
2            within subsection (i) of this Section.
3            (C) Solicitation, pre-qualification, and
4        registration of bidders. The procurement administrator
5        shall disseminate information to potential bidders to
6        promote a procurement event, notify potential bidders
7        that the procurement administrator may enter into a
8        post-bid price negotiation with bidders that meet the
9        applicable benchmarks, provide supply requirements,
10        and otherwise explain the competitive procurement
11        process. In addition to such other publication as the
12        procurement administrator determines is appropriate,
13        this information shall be posted on the Agency's and
14        the Commission's websites. The procurement
15        administrator shall also administer the
16        prequalification process, including evaluation of
17        credit worthiness, compliance with procurement rules,
18        and agreement to the standard form contract developed
19        pursuant to item (D) of this paragraph (4). The
20        procurement administrator shall then identify and
21        register bidders to participate in the procurement
22        event.
23            (D) Standard contract forms and credit terms and
24        instruments. The procurement administrator, in
25        consultation with the Agency, the Commission, and
26        other interested parties and subject to Commission



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1        oversight, shall develop and provide standard contract
2        forms for the supplier contracts that meet generally
3        accepted industry practices as well as include any
4        applicable State of Illinois terms and conditions that
5        are required for contracts entered into by an agency of
6        the State of Illinois. Standard credit terms and
7        instruments that meet generally accepted industry
8        practices shall be similarly developed. Contracts for
9        new photovoltaics shall include a provision attesting
10        that the supplier will use a qualified person for the
11        installation of the device pursuant to paragraph (1) of
12        subsection (i) of this Section. The procurement
13        administrator shall make available to the Commission
14        all written comments it receives on the contract forms,
15        credit terms, or instruments. If the procurement
16        administrator cannot reach agreement with the parties
17        as to the contract terms and conditions, the
18        procurement administrator must notify the Commission
19        of any disputed terms and the Commission shall resolve
20        the dispute. The terms of the contracts shall not be
21        subject to negotiation by winning bidders, and the
22        bidders must agree to the terms of the contract in
23        advance so that winning bids are selected solely on the
24        basis of price.
25            (E) Requests for proposals; competitive
26        procurement process. The procurement administrator



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1        shall design and issue requests for proposals to supply
2        renewable energy credits in accordance with the
3        supplemental procurement plan, as approved by the
4        Commission. The requests for proposals shall set forth
5        a procedure for sealed, binding commitment bidding
6        with pay-as-bid settlement, and provision for
7        selection of bids on the basis of price, provided,
8        however, that no bid shall be accepted if it exceeds
9        the benchmark developed pursuant to item (F) of this
10        paragraph (4).
11            (F) Benchmarks. Benchmarks for each product to be
12        procured shall be developed by the procurement
13        administrator in consultation with Commission staff,
14        the Agency, and the procurement monitor for use in this
15        supplemental procurement.
16            (G) A plan for implementing contingencies in the
17        event of supplier default, Commission rejection of
18        results, or any other cause.
19        (5) Within 2 business days after opening the sealed
20    bids, the procurement administrator shall submit a
21    confidential report to the Commission. The report shall
22    contain the results of the bidding for each of the products
23    along with the procurement administrator's recommendation
24    for the acceptance and rejection of bids based on the price
25    benchmark criteria and other factors observed in the
26    process. The procurement monitor also shall submit a



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1    confidential report to the Commission within 2 business
2    days after opening the sealed bids. The report shall
3    contain the procurement monitor's assessment of bidder
4    behavior in the process as well as an assessment of the
5    procurement administrator's compliance with the
6    procurement process and rules. The Commission shall review
7    the confidential reports submitted by the procurement
8    administrator and procurement monitor and shall accept or
9    reject the recommendations of the procurement
10    administrator within 2 business days after receipt of the
11    reports.
12        (6) Within 3 business days after the Commission
13    decision approving the results of a procurement event, the
14    Agency shall enter into binding contractual arrangements
15    with the winning suppliers using the standard form
16    contracts.
17        (7) The names of the successful bidders and the average
18    of the winning bid prices for each contract type and for
19    each contract term shall be made available to the public
20    within 2 days after the supplemental procurement event. The
21    Commission, the procurement monitor, the procurement
22    administrator, the Agency, and all participants in the
23    procurement process shall maintain the confidentiality of
24    all other supplier and bidding information in a manner
25    consistent with all applicable laws, rules, regulations,
26    and tariffs. Confidential information, including the



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1    confidential reports submitted by the procurement
2    administrator and procurement monitor pursuant to this
3    Section, shall not be made publicly available and shall not
4    be discoverable by any party in any proceeding, absent a
5    compelling demonstration of need, nor shall those reports
6    be admissible in any proceeding other than one for law
7    enforcement purposes.
8        (8) The supplemental procurement provided in this
9    subsection (i) shall not be subject to the requirements and
10    limitations of subsections (c) and (d) of this Section.
11        (9) Expenses incurred in connection with the
12    procurement process held pursuant to this Section,
13    including, but not limited to, the cost of developing the
14    supplemental procurement plan, the procurement
15    administrator, procurement monitor, and the cost of the
16    retirement of renewable energy credits purchased pursuant
17    to the supplemental procurement shall be paid for from the
18    Illinois Power Agency Renewable Energy Resources Fund. The
19    Agency shall enter into an interagency agreement with the
20    Commission to reimburse the Commission for its costs
21    associated with the procurement monitor for the
22    supplemental procurement process.
23(Source: P.A. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10;
2496-1437, eff. 8-17-10; 97-616, eff. 10-26-11.)
25    Section 99. Effective date. This Act takes effect upon
26becoming law.