Rep. Ann M. Williams

Filed: 3/7/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3624

2    AMENDMENT NO. ______. Amend House Bill 3624 by replacing
3everything after the enacting clause with the following:
 
4
"Article 1.
5
Findings

 
6    Section 1-5. Findings.
7    (a) The growing clean energy economy in Illinois can be a
8vehicle for expanding equitable access to public health,
9safety, a cleaner environment, and quality jobs and economic
10opportunities, including wealth building, especially since
11economically disadvantaged communities and communities of
12color have had to bear the disproportionate burden of dirty
13fossil fuel pollution.
14    (b) Placing Illinois on a path to 100% renewable energy is
15vital to a clean energy future. To bring this vision to
16fruition, our energy policy must prioritize a just transition

 

 

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1that incentivizes renewable development and other
2carbon-reducing policies, such as energy efficiency, while
3ensuring that the benefits and opportunities of a carbon-free
4future are accessible in economically disadvantaged
5communities, environmental justice communities, and
6communities of color.
7    (c) In the wake of federal reversals on climate action, the
8State of Illinois should pursue immediate action on policies
9that will ensure a just and responsible phase out of fossil
10fuels from the power sector to reduce harmful emissions from
11Illinois power plants, support power plant communities and
12workers, and allow the clean energy economy to continue growing
13in every corner of Illinois.
14    (d) Energy efficiency should form the basis of any robust
15clean energy policy. It is the cheapest clean energy resource,
16and efficiency upgrades help customers manage their energy
17bills directly by reducing the energy they need, and indirectly
18by holding demand and prices down statewide.
19    (e) The transportation sector is now the leading source of
20carbon pollution in Illinois, responsible for roughly
21one-third of all carbon emissions. The State of Illinois should
22set forth an ambitious goal to remove the equivalent of 1
23million gasoline and diesel-powered vehicles from our roads by
24quickly implementing new policies that expand access to
25transit, promote walking and biking mobility, and increase
26electric vehicle adoption. If managed appropriately, electric

 

 

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1vehicle adoption will drastically reduce emissions from
2transportation, and could save Illinois residents billions of
3dollars.
4    (f) In addition to better air quality and safer climate,
5Illinois residents that do not use electric vehicles also
6benefit from greater adoption through lower electric bills
7resulting from the greater utilization of the electric grid
8during off-peak hours.
9    (g) Energy storage, such as batteries, can provide many
10services to the electricity grid which benefit the grid,
11including managing (or shaving) peak load, frequency
12regulation, voltage support, reserve capacity, and black-start
13capability. And, if that storage facilitates greater
14utilization of renewables, it can allow for more clean energy
15to be accessible, reduce pollution, and provide multiple
16benefits.
17    (h) Illinois needs to adopt a broad-based policy approach
18to decarbonize Illinois' electric sector (both how much we
19produce and how much we consume) in a just and equitable way
20that puts our State on track to phase out emitting power plants
21by 2030.
22    (i) Illinois' policy approach must ensure the reduction of
23co-pollutant emissions that cause serious, local health
24impacts, prioritizing environmental justice communities near
25power plants.
26    (j) As we decarbonize Illinois' electric sector, Illinois

 

 

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1must create new investment to stimulate the economic and
2environmental well-being of communities disproportionately
3impacted by the historical operation of, and recent or expected
4closures of, fossil fuel power plants.
 
5
Article 5.
6
Clean Jobs Workforce Hubs Act

 
7    Section 5-1. Short title. This Article may be cited as the
8Clean Jobs Workforce Hubs Act. References in this Article to
9"this Act" mean this Article.
 
10    Section 5-5. Legislative purpose. The General Assembly
11finds that the State of Illinois should build upon the success
12of the Future Energy Jobs Act and the Illinois Solar for All
13Program by further expanding equitable access to quality jobs
14and economic opportunities (especially for residents of
15economically disadvantaged communities, environmental justice
16communities, communities of color, returning citizens, foster
17care communities, and other underserved communities who have
18had to bear the disproportionate burden of dirty fossil fuel
19pollution) across the entire clean energy sector in Illinois,
20including solar, wind, energy efficiency, transportation
21electrification, and other related clean energy industries.
 
22    Section 5-10. Definitions. As used in this Act:

 

 

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1    "Department" means the Department of Commerce and Economic
2Opportunity.
3    "Director" means the Director of Commerce and Economic
4Opportunity.
5    "Environmental justice communities" means the proposed
6definition of that term based on existing methodologies and
7findings used by the Illinois Power Agency and its
8Administrator in its Illinois Solar for All Program.
9    "Program" means the Clean Jobs Workforce Hubs Program.
 
10    Section 5-15. Clean Jobs Workforce Hubs Program. The
11Department must develop and administer the Clean Jobs Workforce
12Hubs Program to create a network of frontline organizations
13across the State that provide direct and sustained support for
14members of economically disadvantaged communities,
15environmental justice communities, communities of color,
16returning citizens, foster care communities, and displaced
17fossil fuel workers to enter and complete the pipeline for
18clean energy jobs in solar energy, wind energy, energy
19efficiency, electric vehicles and related industries. The
20Clean Jobs Workforce Hubs Program must:
21        (1) leverage frontline organizations to ensure members
22    of disadvantaged communities across the State have
23    dedicated and sustained support to enter and complete the
24    career pipeline for clean energy jobs; and
25        (2) develop formal partnerships between frontline

 

 

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1    organizations and trades groups, labor unions, and clean
2    energy employers to ensure Clean Jobs Workforce Hubs
3    Program participants have priority access to
4    pre-apprenticeship, apprenticeship, and other employment
5    opportunities.
 
6    Section 5-20. Clean Jobs Workforce Hubs Network. The Clean
7Jobs Workforce Hubs Network, made up of frontline organizations
8across the State and administered by a Program Administrator,
9is required to provide the following:
10        (1) community education and outreach about workforce
11    and training opportunities to ensure members of
12    economically disadvantaged communities, environmental
13    justice communities, communities of color, returning
14    citizens, foster care communities, and displaced fossil
15    fuel workers understand clean energy workforce and
16    training opportunities;
17        (2) training, apprenticeship, job readiness, and skill
18    development, including soft skills, math skills, technical
19    skills, and other development needed for members of
20    economically disadvantaged communities, environmental
21    justice communities, communities of color, returning
22    citizens, foster care communities, and displaced fossil
23    fuel workers to enter clean energy-related training and
24    apprenticeship programs and career paths;
25        (3) targeted outreach and recruitment to ensure people

 

 

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1    of color are invited, supported, and given preference in
2    applying for both community-based and labor-based training
3    opportunities, including apprenticeship and
4    pre-apprenticeship programs;
5        (4) the development of partnerships with labor
6    organizations to ensure Clean Jobs Workforce Hubs
7    participants are recruited, placed, and supported in
8    labor-based training programs, such as workforce
9    development programs and pre-apprenticeship and
10    apprenticeship programs;
11        (5) a stipend program for Clean Jobs Workforce Hubs
12    participants in clean energy-related training programs and
13    company apprenticeships, including providing funding to
14    assist with transportation, child care, and other needed
15    services and supplies during the length of programs; and
16        (6) direct assistance and counseling to participants
17    in training and apprenticeship programs to help connect
18    trainees to both union and non-union career options with
19    renewable energy companies, energy efficiency companies,
20    and other clean energy employers and to provide a direct
21    resource for industry to identify qualified workers to meet
22    program hiring or subcontracting requirements, including
23    the workforce equity building actions required under
24    Section 1-75 of the Illinois Power Agency Act and Section
25    16-128B of the Public Utilities Act. Placement activities
26    should include outreach to public agencies, utilities, and

 

 

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1    clean energy companies, creation of formal partnerships
2    with employers, job interview preparation, and on-the-job
3    support and counseling.
 
4    Section 5-25. Program Administrator. Within 60 days after
5the effective date of this Act and after a comprehensive
6stakeholder process that includes representatives from
7frontline communities, the Department shall select a Program
8Administrator, as an individual or an organization, to
9coordinate the work of all or a portion of the work of the
10Clean Jobs Workforce Hubs. The Program Administrator shall have
11strong capabilities in program management, knowledge of
12industry trends and activities, workforce development best
13practices, and community development. The Program
14Administrator shall coordinate the work of all or a portion of
15the Clean Jobs Workforce Hubs network to ensure consistent
16execution, performance, partnerships, marketing, and program
17access across the State.
 
18    Section 5-30. Clean jobs curriculum.
19    (a) Within 60 days after the effective date of this Act,
20the Department must convene a comprehensive stakeholder
21process that includes representatives from the Illinois State
22Board of Education, the Illinois Community College Board, the
23Illinois Department of Labor, frontline organizations,
24workforce development providers, labor unions, building

 

 

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1trades, clean energy employers, including solar industry, wind
2industry, energy efficiency, and transportation
3electrification, and other needed participants to identify the
4career pathways and training curriculum (such as the
5Multi-Craft Core Curriculum) needed to prepare workers to enter
6the clean energy field, including solar photovoltaic, solar
7thermal, wind energy, energy efficiency, site assessment,
8sales, and back office. Curriculum must also include broad
9occupational training to provide career entry into the general
10construction and building trades sector. Within 120 days after
11the stakeholder process is convened, the Department must
12publish a report that reflects the findings and core curriculum
13recommendations developed by the stakeholder group.
14    (b) Organizations that receive funding to provide training
15under the Clean Jobs Workforce Hubs Program, including
16community-based and labor-based training providers, must use
17the core curriculum that is developed under subsection (a).
 
18    Section 5-35. Administration; rules. The Department shall
19administer this Act and shall adopt any rules necessary for
20that purpose.
 
21
Article 10.
22
Expanding Clean Energy Entrepreneurship Act

 
23    Section 10-1. Short title. This Article may be cited as the

 

 

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1Expanding Clean Energy Entrepreneurship Act. References in
2this Article to "this Act" mean this Article.
 
3    Section 10-5. Legislative purpose. The General Assembly
4finds that the State of Illinois should build upon the success
5of the Future Energy Jobs Act and the Illinois Solar for All
6Program by supporting small, disadvantaged clean energy
7businesses and contractors having equitable access to economic
8opportunities created by the growing clean energy sector in
9Illinois.
 
10    Section 10-10. Definitions. As used in this Act:
11    "Department" means the Department of Commerce and Economic
12Opportunity. "Director" means the Director of Commerce and
13Economic Opportunity.
14    "Disadvantaged businesses and contractors" means an entity
15defined under Section 2 of the Business Enterprise for
16Minorities, Women, and Persons with Disabilities Act.
17    "Environmental justice communities" means the proposed
18definition of that term based on existing methodologies and
19findings used by the Illinois Power Agency and its
20Administrator in its Illinois Solar for All Program.
21    "Program" means the Expanding Clean Energy
22Entrepreneurship and Contractor Incubator Program.
 
23    Section 10-15. Expanding Clean Energy Entrepreneurship and

 

 

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1Contractor Incubator Program. The Department must develop and
2administer the Expanding Clean Energy Entrepreneurship and
3Contractor Incubator Program to support the development of
4disadvantaged businesses and contractors and provide the
5needed resources for such businesses to be able to effectively
6compete for, gain, and execute clean energy-related projects.
7The Program must provide:
8        (1) Access to low-cost capital for small and
9    disadvantaged clean energy businesses and contractors to
10    be able to complete on a level playing field with more
11    established, capitalized businesses across the entire
12    clean energy sector in Illinois, including solar, wind,
13    energy efficiency, transportation electrification, and
14    other clean energy industries.
15        (2) Support for obtaining the necessary insurance,
16    bonding, back office services, permits, certifications,
17    and other financial assurance requirements needed to
18    effectively compete for clean energy-related projects,
19    incentive programs, and approved vendor and qualified
20    installer opportunities.
21        (3) Development and support needed for disadvantaged
22    clean energy contractors to build their business and
23    connect them to specific projects, Approved Vendor
24    subcontracting and qualified installer opportunities,
25    partnerships, networks, capital, and other resources
26    needed to compete for, gain, and execute clean

 

 

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1    energy-related project installation and subcontracts.
 
2    Section 10-20. Program Administrator. Within 60 days after
3the effective date of this Act, the Department shall select a
4Program Administrator, as an individual or an organization, to
5coordinate the work of all or a portion of the work of the
6Expanding Clean Energy Entrepreneurship and Contractor
7Incubator Program. The Program Administrator shall have strong
8capabilities in program management, knowledge of industry
9trends and activities, disadvantaged business and contractor
10development best practices, and related development support.
11The Program Administrator shall coordinate the work of all or a
12portion of the Program to ensure consistent execution,
13performance, partnerships, marketing, and program access
14across the State.
 
15    Section 10-25. Administration; rules. The Department shall
16administer this Act and shall adopt any rules necessary for
17that purpose.
 
18
Article 15.
19
Community Energy and Climate Planning Act

 
20    Section 15-1. Short title. This Article may be cited as the
21Community Energy and Climate Planning Act. References in this
22Article to "this Act" mean this Article.
 

 

 

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1    Section 15-5. Legislative purpose. The General Assembly
2makes the following findings:
3        (1) The health, welfare, and prosperity of Illinois
4    citizens require that Illinois take all steps possible to
5    combat climate change, address harmful environmental
6    impacts deriving from the generation of electricity,
7    ensure affordable utility service, equitable and
8    affordable access to transportation, and clean, safe,
9    affordable housing.
10        (2) The achievement of these goals will depend on
11    strong community engagement to ensure that programs and
12    policy solutions meet the needs of disparate communities.
13        (3) Ensuring that these goals are met without adverse
14    impacts on utility bill affordability, housing
15    affordability, and other essential services will depend on
16    the coordination of policies and programs within local
17    communities.
 
18    Section 15-10. Definitions. As used in this Act:
19    "Alternative energy improvement" means the installation or
20upgrade of electrical wiring, outlets, or charging stations to
21charge a motor vehicle that is fully or partially powered by
22electricity; photovoltaic, energy storage, or thermal
23resource; or any combination thereof.
24    "Energy efficiency improvement" means equipment, devices,

 

 

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1or materials intended to decrease energy consumption or promote
2a more efficient use of electricity, natural gas, propane, or
3other forms of energy on property, including, but not limited
4to, all of the following:
5        (1) insulation in walls, roofs, floors, foundations,
6    or heating and cooling distribution systems;
7        (2) storm windows and doors, multi-glazed windows and
8    doors, heat-absorbing or heat-reflective glazed and coated
9    window and door systems, and additional glazing,
10    reductions in glass area, and other window and door system
11    modifications that reduce energy consumption;
12        (3) automated energy control systems;
13        (4) high efficiency heating, ventilating, or
14    air-conditioning and distribution system modifications or
15    replacements;
16        (5) caulking, weather-stripping, and air sealing;
17        (6) replacement or modification of lighting fixtures
18    to reduce the energy use of the lighting system;
19        (7) energy controls or recovery systems;
20        (8) day lighting systems;
21        (9) any energy efficiency project, as defined in
22    Section 825-65 of the Illinois Finance Authority Act; and
23        (10) any other installation or modification of
24    equipment, devices, or materials approved as a utility
25    cost-savings measure by the governing body.
26    "Energy project" means the installation or modification of

 

 

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1an alternative energy improvement, energy efficiency
2improvement, or water use improvement, or the acquisition,
3installation, or improvement of a renewable energy system that
4is affixed to a stabilized existing property (including new
5construction).
6    "Environmental justice communities" means the proposed
7definition of that term based on existing methodologies and
8findings used by the Illinois Power Agency and its
9Administrator in its Illinois Solar for All Program.
10    "Governing body" means the county board or board of county
11commissioners of a county, the city council of a city, or the
12board of trustees of a village.
13    "Local unit of government" means a county, city, or
14village.
15    "Renewable energy resource" includes energy and its
16associated renewable energy credit or renewable energy credits
17from wind energy, solar thermal energy, geothermal energy,
18photovoltaic cells and panels, biodiesel, anaerobic digestion,
19and hydropower that does not involve new construction or
20significant expansion of hydropower dams. For purposes of this
21Act, landfill gas produced in the State is considered a
22renewable energy resource. "Renewable energy resource" does
23not include the incineration or burning of any solid material.
24    "Renewable energy system" means a fixture, product,
25device, or interacting group of fixtures, products, or devices
26on the customer's side of the meter that use one or more

 

 

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1renewable energy resources to generate electricity, and
2specifically includes any renewable energy project, as defined
3in Section 825-65 of the Illinois Finance Authority Act.
4    "Water use improvement" means any fixture, product,
5system, device, or interacting group thereof for or serving any
6property that has the effect of conserving water resources
7through improved water management, efficiency, or thermal
8resource.
 
9    Section 15-15. Community Energy and Climate Plans;
10creation.
11    (a) Pursuant to the procedures in Section 15-20, a local
12unit of government may establish Community Energy and Climate
13Plans and identify boundaries and areas covered by the Plans.
14    (b) Community Energy and Climate Plans are intended to aid
15local governments develop a comprehensive approach to
16combining different energy and climate programs and funding
17resources to achieve complementary impact. An effective
18planning process shall:
19        (1) help communities discover ways that their local
20    government, businesses, and residents can control their
21    energy use and bills;
22        (2) ensure a cost-effective transition away from
23    fossil fuels in the transportation sector;
24        (3) expand access to workforce development and job
25    training opportunities in the emerging clean energy

 

 

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1    economy;
2        (4) promote economic development through improvements
3    in community infrastructure, transit, and support for
4    local business;
5        (5) improve the health of Illinois communities by
6    reducing emissions, addressing existing brownfield areas,
7    and promoting the integration of distributed energy
8    resources;
9        (6) enable greater customer engagement, empowerment,
10    and options for energy services, and ultimately reduce
11    utility bills for Illinoisans;
12        (7) bring the benefits of grid modernization and the
13    deployment of distributed energy resources to economically
14    disadvantaged communities throughout Illinois; and
15        (8) support existing Illinois policy goals promoting
16    energy efficiency, demand response and investments in
17    renewable energy resources.
18    (c) A Community Energy and Climate Plan shall include
19discussion of:
20        (1) the demographics of the community, including
21    information on the mix of residential and commercial areas
22    and populations, ages, languages, education and workforce
23    training. This includes an examination of the average
24    utility bills paid within the community by class and census
25    area, the percentage and locations of individuals
26    requiring energy assistance, participation of community

 

 

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1    members in other assistance programs. This also includes an
2    examination of the community's energy use, both for
3    electricity, natural gas, and transportation and other
4    fuels;
5        (2) the geography of the community, including the
6    amount of green space, brownfield sites, open space for
7    potential development, location of critical infrastructure
8    such as emergency response facilities, health care and
9    education facilities, and public transportation routes;
10    and
11        (3) information on economic development opportunities,
12    commercial usage, and employment opportunities.
13    (d) A Community Energy and Climate Plan shall address the
14following areas:
15        (1) distributed energy resources, including energy
16    efficiency, demand response, dynamic pricing, energy
17    storage, solar (thermal, rooftop, and community);
18        (2) building codes (both commercial and residential);
19        (3) vehicle miles traveled; and
20        (4) transit options, including individual car
21    ownership, ride sharing, buses, trains, bicycles, and
22    pedestrian walkways.
23    (e) A Community Energy and Climate Plan will conclude with
24proposals to:
25        (1) increase the use of electricity as a transportation
26    fuel at multi-unit dwellings;

 

 

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1        (2) maximize the system-wide benefits of
2    transportation electrification;
3        (3) test innovative load management programs or rate
4    structures associated with the use of electric vehicles by
5    residential customers to achieve customer fuel cost
6    savings relative to gasoline or diesel fuels and to
7    optimize grid efficiency;
8        (4) increase the integration of distributed energy
9    resources in the community;
10        (5) significantly expand the percentage of net-zero
11    housing and net-zero buildings in the community;
12        (6) improve utility bill affordability;
13        (7) increase mass transit ridership;
14        (8) decrease vehicle miles traveled; and
15        (9) reduce local emissions of greenhouse gases, NOx,
16    SOx, particulate matter, and other air pollutants.
17    (e) A Community Energy and Climate Plan may be administered
18by one or more program administrators or the local unit of
19government.
 
20    Section 15-20. Community Energy and Climate Planning
21process.
22    (a) An effective planning process shall engage with a
23diverse set of stakeholders in local communities, including:
24environmental justice organizations; economic development
25organizations; faith-based nonprofit organizations;

 

 

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1educational institutions; interested residents; health care
2institutions; tenant organizations; housing institutions,
3developers, and owners; elected and appointed officials; and
4representatives reflective of each local community.
5    (b) An effective planning process shall engage with
6individual members of the community as much as possible to
7ensure that the Plans receive input from as diverse set of
8perspectives as possible.
9    (c) Plan materials and meetings related to the Plan shall
10be translated into languages that reflect the makeup of the
11local community.
12    (d) The planning process shall be conducted in an ethical,
13transparent fashion, and will continually review its policies
14and practices to determine how best to meet its objectives.
 
15    Section 15-25. Joint Community Energy and Climate Plans. A
16local unit of government may join with any other local unit of
17government, or with any public or private person, or with any
18number or combination thereof, under the Intergovernmental
19Cooperation Act, by contract or otherwise as may be permitted
20by law, for the implementation of a Community Energy and
21Climate Plan, in whole or in part.
 
22
Article 20.
23
Clean Energy Empowerment Zones Act

 

 

 

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1    Section 20-1. Short title. This Article may be cited as the
2Clean Energy Empowerment Zones Act. References in this Article
3to "this Act" mean this Article.
 
4    Section 20-5. Legislative findings. The General Assembly
5finds that, as part of putting Illinois on path to 100%
6renewable energy, the State of Illinois should ensure a just
7transition to that goal, providing support for the transition
8of Illinois' communities and workers impacted by closures or
9reduced utilization of coal by allocating new State economic
10development resources for new business tax incentives,
11workforce training, site clean-up and reuse, and local tax
12revenue replacement.
 
13    Section 20-10. Definitions. As used in this Act:
14    "Agency" means the Illinois Environmental Protection
15Agency.
16    "Department" means the Department of Commerce and Economic
17Opportunity.
18    "Director" means the Director of Commerce and Economic
19Opportunity.
20    "Empowerment Zones" means Clean Energy Empowerment Zones
21Program.
22    "Environmental justice communities" means the proposed
23definition of that term based on existing methodologies and
24findings used by the Illinois Power Agency and its

 

 

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1Administrator in its Illinois Solar for All Program.
 
2    Section 20-15. Clean Energy Empowerment Zones. Within 180
3days after the effective date of this Act, the Illinois
4Department of Commerce and Economic Opportunity shall develop
5and implement strategic planning initiatives to support
6communities and workers who are economically impacted by the
7decline of fossil-fuel generation and broader changes in the
8electric sector. As part of this work, the Department shall:
9        (1) work with the Illinois Environmental Protection
10    Agency, Illinois Environmental Justice Commission, and the
11    Illinois Department of Labor to define "Economically
12    Impacted Communities and Workers" by the decline of
13    fossil-fuel use;
14        (2) establish funds to support impacted workers and
15    communities through workforce training programs, new
16    business tax incentives, and revitalization of sites
17    previously used for or by those units, including, but not
18    limited to, the generation sources, coal ash disposal
19    sites, and areas otherwise blighted by fossil-fuel use;
20        (3) convene, jointly with the Agency and at least one
21    community-based organization, quarterly stakeholder
22    engagement sessions beginning in the fourth quarter of 2019
23    and continuing for not less than 2 years to gather input
24    from impacted community members, businesses, elected
25    officials, environmental organizations, and other relevant

 

 

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1    individuals or organizations on issues faced by impacted
2    communities and potential economic development
3    opportunities for those communities; and
4        (4) provide coordination and guidance for communities
5    and prospective new businesses on available workforce
6    training programs, revitalization opportunities, new
7    business incentives, Community Energy and Climate Plans
8    under the Community Energy and Climate Planning Act,
9    beneficial electrification under Section 16-107.8 of the
10    Public Utilities Act, and other State and federal programs
11    such as Opportunity Zones (Internal Revenue Code 1400Z).
 
12
Article 90.
13
Amendatory Provisions

 
14    Section 90-5. The Electric Vehicle Act is amended by adding
15Sections 30, 35, and 40 as follows:
 
16    (20 ILCS 627/30 new)
17    Sec. 30. Electric Vehicle Charging Infrastructure Rebate
18and Incentive Program.
19    (a) The purpose of this Section is to provide rebates and
20other incentives to residential and commercial customers to
21increase the development of electric vehicle charging
22infrastructure.
23    (b) In this Section:

 

 

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1    "Level 2 charging" means a charging method that allows an
2electric vehicle to be connected to permanently wired EVSE with
3a specialized connector (SAE J1772) with power levels rated at
4less than or equal to 240 VAC/80 amps.
5    "Level 3 charging" means a charging method that allows an
6electric vehicle to be connected to permanently wired EVSE with
7direct current service with power levels rated at 480VAC and a
83-phase circuit.
9    (c) Within 120 days after the effective date of this
10amendatory Act of the 101st General Assembly, the Department of
11Commerce and Economic Opportunity shall establish a program to
12provide rebates for residential customers who both install
13electric vehicle charging infrastructure on their premises and
14enroll in time-of-use, hourly rates, managed charging, or other
15beneficial electrification programs as defined in Section
1616-107.8 of the Public Utilities Act sufficient to offset no
17less than 60% of the cost of installing that infrastructure (or
18another reasonable amount sufficient to incentivize
19development, as determined by the program administrator),
20except as provided in this subsection.
21    Residential customers residing in environmental justice
22communities, as defined in the Clean Energy Empowerment Zones
23Act, or households at or below 80% of the area median income,
24who install electric vehicle charging infrastructure and
25enroll in time-of-use, hourly rates, managed charging, or other
26beneficial electrification programs as defined in Section

 

 

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116-107.8 of the Public Utilities Act shall be eligible to
2receive rebates of 90% of the cost of installing that
3infrastructure (or another reasonable amount sufficient to
4incentivize development, as determined by the program
5administrator).
6    (d) Within 120 days after the effective date of this
7amendatory Act of the 101st General Assembly, the Department of
8Commerce and Economic Opportunity shall establish a program to
9provide rebates for Level 2 charging and Level 3 charging for
10government and commercial customers to purchase and install
11electric vehicle charging infrastructure to support
12medium-duty and heavy-duty electric fleet vehicles. Eligible
13customers must both install electric vehicle charging
14infrastructure for the purpose of charging medium-duty and
15heavy-duty electric vehicles, as defined in this subsection,
16and participate in beneficial electrification strategies as
17defined in Section 16-107.8 of the Public Utilities Act, such
18as enrolling in managed charging, installing distributed
19generation which serves all or part of the energy supply needs
20of the charging infrastructure, or other programs. The amount
21of the rebate shall be sufficient to incentivize adoption of
22electric medium-duty and heavy-duty fleet vehicles, but no less
23than 50% of the cost of purchase and installation. For the
24purposes of this Section, medium-duty and heavy-duty electric
25vehicles include school buses, transit buses, freight trucks,
26delivery vehicles, and other vehicles as defined by the program

 

 

10100HB3624ham001- 26 -LRB101 09870 JLS 56878 a

1administrator.
2    (e) Within 120 days after the effective date of this
3amendatory Act of the 101st General Assembly, the Department of
4Commerce and Economic Opportunity shall establish a program to
5provide rebates for commercial customers to purchase and
6install charging infrastructure to support light-duty electric
7vehicles, including personal vehicles used by employees, to
8enable charging on premises. Eligible customers must both
9install electric vehicle charging infrastructure for the
10purpose of charging and participate in beneficial
11electrification strategies as defined in Section 16-107.8 of
12the Public Utilities Act, such as enrolling in Managed
13Charging, installing distributed generation which serves all
14or part of the energy supply needs of the charging
15infrastructure, or other programs. The amount of the rebate
16shall be sufficient to incentivize installation of light-duty
17electric vehicle charging infrastructure, but no less than 50%
18of the cost of purchase and installation.
19    (f) Within 120 days after the effective date of this
20amendatory Act of the 101st General Assembly, the Department of
21Commerce and Economic Opportunity shall establish a program to
22provide rebates for Level 2 and Level 3 electric vehicle
23charging infrastructure which serves multi-family (three or
24more unit) residential premises. Owners of the multi-family
25property on whose premises the infrastructure will be installed
26or third parties are eligible to apply for the rebate. The

 

 

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1amount of the rebate shall be sufficient to incentivize
2installation of light-duty electric vehicle charging
3infrastructure, but no less than 50% of the cost of purchase
4and installation.
5    (g) Within 120 days after the effective date of this
6amendatory Act of the 101st General Assembly, the Department of
7Commerce and Economic Opportunity shall establish a program to
8provide rebates for pilot programs which incentivize
9installation of electric vehicle charging infrastructure on
10the public way. Such programs shall include:
11        (1) local governments that develop publicly-available
12    electric vehicle charging using streetlights or other
13    city-owned infrastructure; and
14        (2) local governments and privately-owned third
15    parties that install publicly-available electric vehicle
16    charging infrastructure along State highways, interstates,
17    and other corridors.
18    (h) Within 120 days after the effective date of this
19amendatory Act of the 101st General Assembly, the Department of
20Commerce and Economic Opportunity shall establish and
21implement an Electric Vehicle Access for All Program set forth
22in Section 35.
23    (i) The Department of Commerce and Economic Opportunity
24shall select, through a competitive bidding process, a program
25administrator to oversee and administer the programs described
26in this Section.

 

 

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1    (j) The Department shall report to the Governor and the
2General Assembly regarding the effectiveness of the programs in
3increasing electric vehicle charging infrastructure
4development no later than July 1, 2021.
 
5    (20 ILCS 627/35 new)
6    Sec. 35. Electric Vehicle Access for All.
7    (a) The General Assembly finds that it is necessary to
8provide access to electric vehicles to residents in communities
9where and for individuals whom car ownership is not an option,
10affordable, or a preference, particularly for environmental
11justice communities and low-income communities.
12    (b) Within 120 days after the effective date of this
13amendatory Act of the 101st General Assembly, the Department of
14Commerce and Economic Opportunity shall establish and
15implement an Electric Vehicle Access for All Program, designed
16to maximize opportunities for carbon-free transportation
17across the State, particularly targeting environmental justice
18and low-income communities, which shall include the following
19initiatives:
20        (1) Car sharing. The Department of Commerce and
21    Economic Opportunity shall develop and implement an
22    electric vehicle car sharing program that enables
23    residents opportunities to use electric vehicles owned by
24    local municipalities or other third parties for occasional
25    commutes.

 

 

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1        (2) Pilot programs. The Department shall dedicate
2    funding for local governments' eligible Community Energy
3    and Climate Plans that include Electric Vehicle Access for
4    All as priority initiatives.
5    (c) To the extent possible, the Department shall coordinate
6the Electric Vehicle Access for All program with the other
7programs established in this Act.
 
8    (20 ILCS 627/40 new)
9    Sec. 40. Carbon-Free Last Mile of Commutes Program.
10    (a) The purpose of this Section is to provide citizens
11access to carbon-free commuting by creating pilot programs to
12address the "last mile" of commutes, enabling a larger number
13of citizens to access public transportation and reducing the
14pollution impact of the entire commute.
15    (b) Within 120 days after the effective date of this
16amendatory Act of the 101st General Assembly, and for a period
17not less than 36 months thereafter, the Department of Commerce
18and Economic Opportunity shall establish and implement a Last
19Mile of Commutes Program, designed to maximize opportunities
20for carbon-free transportation across the State, particularly
21targeting environmental justice and low-income communities, to
22provide grants to pilot programs with the purpose of bridging
23public transportation gaps between residences and employment
24locations. Eligible programs may include electric shuttles,
25electric and non-electric bicycle and scooter sharing,

 

 

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1electric vehicle sharing, and other carbon-free alternatives.
2    The Department of Commerce and Economic Opportunity shall
3select, through a competitive bidding program, a program
4administrator to oversee and administer the program.
5    (c) In conducting the program, the Department of Commerce
6and Economic Opportunity shall partner with appropriate
7transit agencies, employers, and other transportation services
8to increase the number of employment locations reachable by
9public transit. The Department of Commerce and Economic
10Opportunity shall additionally partner with local governments
11engaging in Community Energy and Climate Planning, as described
12in the Community Energy and Climate Planning Act, to implement
13Last Mile of Commutes Programs efficiently with needs
14identified in Community Energy and Climate Plans.
15    (d) The Department of Commerce and Economic Opportunity
16shall operate the Last Mile of Commutes Program in conjunction
17with the Electric Vehicle Access for All Program, to
18effectively coordinate the programs and maximize opportunities
19for carbon-free transportation across the State, particularly
20targeting environmental justice and low-income communities.
21    (e) The Department of Commerce and Economic Opportunity
22shall report to the Governor and the General Assembly regarding
23the effectiveness of the programs no later than July 1, 2021.
 
24    Section 90-10. The Illinois Power Agency Act is amended by
25changing Sections 1-5, 1-20, 1-56, and 1-75 as follows:
 

 

 

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1    (20 ILCS 3855/1-5)
2    Sec. 1-5. Legislative declarations and findings. The
3General Assembly finds and declares:
4        (1) The health, welfare, and prosperity of all Illinois
5    citizens require the provision of adequate, reliable,
6    affordable, efficient, and environmentally sustainable
7    electric service at the lowest total cost over time, taking
8    into account any benefits of price stability.
9        (1.5) To provide the highest quality of life for the
10    residents of Illinois, and to provide for a clean and
11    healthy environment, it is the policy of this State to
12    rapidly transition to 100% renewable energy.
13        (2) (Blank).
14        (3) (Blank).
15        (4) It is necessary to improve the process of procuring
16    electricity to serve Illinois residents, to promote
17    investment in energy efficiency and demand-response
18    measures, and to maintain and support development of clean
19    coal technologies, generation resources that operate at
20    all hours of the day and under all weather conditions, zero
21    emission facilities, and renewable resources.
22        (5) Procuring a diverse electricity supply portfolio
23    will ensure the lowest total cost over time for adequate,
24    reliable, efficient, and environmentally sustainable
25    electric service.

 

 

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1        (6) Including renewable resources and zero emission
2    credits from zero emission facilities in that portfolio
3    will reduce long-term direct and indirect costs to
4    consumers by decreasing environmental impacts and by
5    avoiding or delaying the need for new generation,
6    transmission, and distribution infrastructure. Developing
7    new renewable energy resources in Illinois, including
8    brownfield solar projects and community solar projects,
9    will help to diversify Illinois electricity supply, avoid
10    and reduce pollution, reduce peak demand, and enhance
11    public health and well-being of Illinois residents.
12        (7) Developing community solar projects in Illinois
13    will help to expand access to renewable energy resources to
14    more Illinois residents.
15        (8) Developing brownfield solar projects in Illinois
16    will help return blighted or contaminated land to
17    productive use while enhancing public health and the
18    well-being of Illinois residents.
19        (9) Energy efficiency, demand-response measures, zero
20    emission energy, and renewable energy are resources
21    currently underused in Illinois. These resources should be
22    used, when cost effective, to reduce costs to consumers,
23    improve reliability, and improve environmental quality and
24    public health.
25        (10) The State should encourage the use of advanced
26    clean coal technologies that capture and sequester carbon

 

 

10100HB3624ham001- 33 -LRB101 09870 JLS 56878 a

1    dioxide emissions to advance environmental protection
2    goals and to demonstrate the viability of coal and
3    coal-derived fuels in a carbon-constrained economy.
4        (11) The General Assembly enacted Public Act 96-0795 to
5    reform the State's purchasing processes, recognizing that
6    government procurement is susceptible to abuse if
7    structural and procedural safeguards are not in place to
8    ensure independence, insulation, oversight, and
9    transparency.
10        (12) The principles that underlie the procurement
11    reform legislation apply also in the context of power
12    purchasing.
13        (13) To ensure that the benefits of installing
14    renewable resources are available to all Illinois
15    residents and located across the State, subject to
16    appropriation, it is necessary for the Illinois Power
17    Agency to provide public information and educational
18    resources on how residents can benefit from the expansion
19    of renewable energy in Illinois and participate in the
20    Illinois Solar for All Program established in Section 1-56
21    of this Act, the Adjustable Block Program established in
22    Section 1-75 of this Act, the job training programs
23    established by paragraph (1) of subsection (a) of Section
24    16-108.12 of the Public Utilities Act, and the programs and
25    resources established by the Clean Jobs Workforce Hubs Act.
26    The General Assembly therefore finds that it is necessary

 

 

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1to create the Illinois Power Agency and that the goals and
2objectives of that Agency are to accomplish each of the
3following:
4        (A) Develop electricity procurement plans to ensure
5    adequate, reliable, affordable, efficient, and
6    environmentally sustainable electric service at the lowest
7    total cost over time, taking into account any benefits of
8    price stability, for electric utilities that on December
9    31, 2005 provided electric service to at least 100,000
10    customers in Illinois and for small multi-jurisdictional
11    electric utilities that (i) on December 31, 2005 served
12    less than 100,000 customers in Illinois and (ii) request a
13    procurement plan for their Illinois jurisdictional load.
14    The procurement plan shall be updated on an annual basis
15    and shall include renewable energy resources and,
16    beginning with the delivery year commencing June 1, 2017,
17    zero emission credits from zero emission facilities
18    sufficient to achieve the standards specified in this Act.
19        (B) Conduct the competitive procurement processes
20    identified in this Act.
21        (C) Develop electric generation and co-generation
22    facilities that use indigenous coal or renewable
23    resources, or both, financed with bonds issued by the
24    Illinois Finance Authority.
25        (D) Supply electricity from the Agency's facilities at
26    cost to one or more of the following: municipal electric

 

 

10100HB3624ham001- 35 -LRB101 09870 JLS 56878 a

1    systems, governmental aggregators, or rural electric
2    cooperatives in Illinois.
3        (E) Ensure that the process of power procurement is
4    conducted in an ethical and transparent fashion, immune
5    from improper influence.
6        (F) Continue to review its policies and practices to
7    determine how best to meet its mission of providing the
8    lowest cost power to the greatest number of people, at any
9    given point in time, in accordance with applicable law.
10        (G) Operate in a structurally insulated, independent,
11    and transparent fashion so that nothing impedes the
12    Agency's mission to secure power at the best prices the
13    market will bear, provided that the Agency meets all
14    applicable legal requirements.
15        (H) Implement renewable energy procurement and
16    training programs throughout the State to diversify
17    Illinois electricity supply, improve reliability, avoid
18    and reduce pollution, reduce peak demand, and enhance
19    public health and well-being of Illinois residents,
20    including low-income residents.
21(Source: P.A. 99-906, eff. 6-1-17.)
 
22    (20 ILCS 3855/1-20)
23    Sec. 1-20. General powers and duties of the Agency.
24    (a) The Agency is authorized to do each of the following:
25        (1) Develop electricity procurement plans to ensure

 

 

10100HB3624ham001- 36 -LRB101 09870 JLS 56878 a

1    adequate, reliable, affordable, efficient, and
2    environmentally sustainable electric service at the lowest
3    total cost over time, taking into account any benefits of
4    price stability, for electric utilities that on December
5    31, 2005 provided electric service to at least 100,000
6    customers in Illinois and for small multi-jurisdictional
7    electric utilities that (A) on December 31, 2005 served
8    less than 100,000 customers in Illinois and (B) request a
9    procurement plan for their Illinois jurisdictional load.
10    Except as provided in paragraph (1.5) of this subsection
11    (a), the electricity procurement plans shall be updated on
12    an annual basis and shall include electricity generated
13    from renewable resources sufficient to achieve the
14    standards specified in this Act. Beginning with the
15    delivery year commencing June 1, 2017, develop procurement
16    plans to include zero emission credits generated from zero
17    emission facilities sufficient to achieve the standards
18    specified in this Act. Beginning with the procurement for
19    the delivery year commencing June 1, 2021, the Agency shall
20    for each year develop a plan, as part of its procurement
21    plan, to conduct a procurement of capacity from qualified
22    resources needed to meet capacity requirements of the
23    retail customers of electric utilities that serve more than
24    3,000,000 retail customers and are located in the PJM
25    interconnection, subject to the open access tariff and
26    manuals of PJM Interconnection and approved by the Federal

 

 

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

 

 

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1    (c) of Section 1-75 of this Act and Section 16-111.5 of the
2    Public Utilities Act.
3        (3) Develop electric generation and co-generation
4    facilities that use indigenous coal or renewable
5    resources, or both, financed with bonds issued by the
6    Illinois Finance Authority.
7        (4) Supply electricity from the Agency's facilities at
8    cost to one or more of the following: municipal electric
9    systems, governmental aggregators, or rural electric
10    cooperatives in Illinois.
11    (b) Except as otherwise limited by this Act, the Agency has
12all of the powers necessary or convenient to carry out the
13purposes and provisions of this Act, including without
14limitation, each of the following:
15        (1) To have a corporate seal, and to alter that seal at
16    pleasure, and to use it by causing it or a facsimile to be
17    affixed or impressed or reproduced in any other manner.
18        (2) To use the services of the Illinois Finance
19    Authority necessary to carry out the Agency's purposes.
20        (3) To negotiate and enter into loan agreements and
21    other agreements with the Illinois Finance Authority.
22        (4) To obtain and employ personnel and hire consultants
23    that are necessary to fulfill the Agency's purposes, and to
24    make expenditures for that purpose within the
25    appropriations for that purpose.
26        (5) To purchase, receive, take by grant, gift, devise,

 

 

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1    bequest, or otherwise, lease, or otherwise acquire, own,
2    hold, improve, employ, use, and otherwise deal in and with,
3    real or personal property whether tangible or intangible,
4    or any interest therein, within the State.
5        (6) To acquire real or personal property, whether
6    tangible or intangible, including without limitation
7    property rights, interests in property, franchises,
8    obligations, contracts, and debt and equity securities,
9    and to do so by the exercise of the power of eminent domain
10    in accordance with Section 1-21; except that any real
11    property acquired by the exercise of the power of eminent
12    domain must be located within the State.
13        (7) To sell, convey, lease, exchange, transfer,
14    abandon, or otherwise dispose of, or mortgage, pledge, or
15    create a security interest in, any of its assets,
16    properties, or any interest therein, wherever situated.
17        (8) To purchase, take, receive, subscribe for, or
18    otherwise acquire, hold, make a tender offer for, vote,
19    employ, sell, lend, lease, exchange, transfer, or
20    otherwise dispose of, mortgage, pledge, or grant a security
21    interest in, use, and otherwise deal in and with, bonds and
22    other obligations, shares, or other securities (or
23    interests therein) issued by others, whether engaged in a
24    similar or different business or activity.
25        (9) To make and execute agreements, contracts, and
26    other instruments necessary or convenient in the exercise

 

 

10100HB3624ham001- 40 -LRB101 09870 JLS 56878 a

1    of the powers and functions of the Agency under this Act,
2    including contracts with any person, including personal
3    service contracts, or with any local government, State
4    agency, or other entity; and all State agencies and all
5    local governments are authorized to enter into and do all
6    things necessary to perform any such agreement, contract,
7    or other instrument with the Agency. No such agreement,
8    contract, or other instrument shall exceed 40 years.
9        (10) To lend money, invest and reinvest its funds in
10    accordance with the Public Funds Investment Act, and take
11    and hold real and personal property as security for the
12    payment of funds loaned or invested.
13        (11) To borrow money at such rate or rates of interest
14    as the Agency may determine, issue its notes, bonds, or
15    other obligations to evidence that indebtedness, and
16    secure any of its obligations by mortgage or pledge of its
17    real or personal property, machinery, equipment,
18    structures, fixtures, inventories, revenues, grants, and
19    other funds as provided or any interest therein, wherever
20    situated.
21        (12) To enter into agreements with the Illinois Finance
22    Authority to issue bonds whether or not the income
23    therefrom is exempt from federal taxation.
24        (13) To procure insurance against any loss in
25    connection with its properties or operations in such amount
26    or amounts and from such insurers, including the federal

 

 

10100HB3624ham001- 41 -LRB101 09870 JLS 56878 a

1    government, as it may deem necessary or desirable, and to
2    pay any premiums therefor.
3        (14) To negotiate and enter into agreements with
4    trustees or receivers appointed by United States
5    bankruptcy courts or federal district courts or in other
6    proceedings involving adjustment of debts and authorize
7    proceedings involving adjustment of debts and authorize
8    legal counsel for the Agency to appear in any such
9    proceedings.
10        (15) To file a petition under Chapter 9 of Title 11 of
11    the United States Bankruptcy Code or take other similar
12    action for the adjustment of its debts.
13        (16) To enter into management agreements for the
14    operation of any of the property or facilities owned by the
15    Agency.
16        (17) To enter into an agreement to transfer and to
17    transfer any land, facilities, fixtures, or equipment of
18    the Agency to one or more municipal electric systems,
19    governmental aggregators, or rural electric agencies or
20    cooperatives, for such consideration and upon such terms as
21    the Agency may determine to be in the best interest of the
22    citizens of Illinois.
23        (18) To enter upon any lands and within any building
24    whenever in its judgment it may be necessary for the
25    purpose of making surveys and examinations to accomplish
26    any purpose authorized by this Act.

 

 

10100HB3624ham001- 42 -LRB101 09870 JLS 56878 a

1        (19) To maintain an office or offices at such place or
2    places in the State as it may determine.
3        (20) To request information, and to make any inquiry,
4    investigation, survey, or study that the Agency may deem
5    necessary to enable it effectively to carry out the
6    provisions of this Act.
7        (21) To accept and expend appropriations.
8        (22) To engage in any activity or operation that is
9    incidental to and in furtherance of efficient operation to
10    accomplish the Agency's purposes, including hiring
11    employees that the Director deems essential for the
12    operations of the Agency.
13        (23) To adopt, revise, amend, and repeal rules with
14    respect to its operations, properties, and facilities as
15    may be necessary or convenient to carry out the purposes of
16    this Act, subject to the provisions of the Illinois
17    Administrative Procedure Act and Sections 1-22 and 1-35 of
18    this Act.
19        (24) To establish and collect charges and fees as
20    described in this Act.
21        (25) To conduct competitive gasification feedstock
22    procurement processes to procure the feedstocks for the
23    clean coal SNG brownfield facility in accordance with the
24    requirements of Section 1-78 of this Act.
25        (26) To review, revise, and approve sourcing
26    agreements and mediate and resolve disputes between gas

 

 

10100HB3624ham001- 43 -LRB101 09870 JLS 56878 a

1    utilities and the clean coal SNG brownfield facility
2    pursuant to subsection (h-1) of Section 9-220 of the Public
3    Utilities Act.
4        (27) To request, review and accept proposals, execute
5    contracts, purchase renewable energy credits and otherwise
6    dedicate funds from the Illinois Power Agency Renewable
7    Energy Resources Fund to create and carry out the
8    objectives of the Illinois Solar for All program in
9    accordance with Section 1-56 of this Act.
10(Source: P.A. 99-906, eff. 6-1-17.)
 
11    (20 ILCS 3855/1-56)
12    Sec. 1-56. Illinois Power Agency Renewable Energy
13Resources Fund; Illinois Solar for All Program.
14    (a) The Illinois Power Agency Renewable Energy Resources
15Fund is created as a special fund in the State treasury.
16    (b) The Illinois Power Agency Renewable Energy Resources
17Fund shall be administered by the Agency as described in this
18subsection (b), provided that the changes to this subsection
19(b) made by this amendatory Act of the 99th General Assembly
20shall not interfere with existing contracts under this Section.
21        (1) The Illinois Power Agency Renewable Energy
22    Resources Fund shall be used to purchase renewable energy
23    credits according to any approved procurement plan
24    developed by the Agency prior to June 1, 2017.
25        (2) The Illinois Power Agency Renewable Energy

 

 

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1    Resources Fund shall also be used to create the Illinois
2    Solar for All Program, which shall include incentives for
3    low-income distributed generation and community solar
4    projects, and other associated approved expenditures. The
5    objectives of the Illinois Solar for All Program are to
6    bring photovoltaics to low-income communities in this
7    State in a manner that maximizes the development of new
8    photovoltaic generating facilities, to create a long-term,
9    low-income solar marketplace throughout this State, to
10    integrate, through interaction with stakeholders, with
11    existing energy efficiency initiatives, and to minimize
12    administrative costs. The Agency shall include a
13    description of its proposed approach to the design,
14    administration, implementation and evaluation of the
15    Illinois Solar for All Program, as part of the long-term
16    renewable resources procurement plan authorized by
17    subsection (c) of Section 1-75 of this Act, and the program
18    shall be designed to grow the low-income solar market. The
19    Agency or utility, as applicable, shall purchase renewable
20    energy credits from the (i) photovoltaic distributed
21    renewable energy generation projects and (ii) community
22    solar projects that are procured under procurement
23    processes authorized by the long-term renewable resources
24    procurement plans approved by the Commission.
25        The Illinois Solar for All Program shall include the
26    program offerings described in subparagraphs (A) through

 

 

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1    (D) of this paragraph (2), which the Agency shall implement
2    through contracts with third-party providers and, subject
3    to appropriation, pay the approximate amounts identified
4    using monies available in the Illinois Power Agency
5    Renewable Energy Resources Fund. Each contract that
6    provides for the installation of solar facilities shall
7    provide that the solar facilities will produce energy and
8    economic benefits, at a level determined by the Agency to
9    be reasonable, for the participating low income customers.
10    The monies available in the Illinois Power Agency Renewable
11    Energy Resources Fund and not otherwise committed to
12    contracts executed under subsection (i) of this Section
13    shall be allocated among the programs described in this
14    paragraph (2), as follows: 22.5% of these funds shall be
15    allocated to programs described in subparagraph (A) of this
16    paragraph (2), 37.5% of these funds shall be allocated to
17    programs described in subparagraph (B) of this paragraph
18    (2), 15% of these funds shall be allocated to programs
19    described in subparagraph (C) of this paragraph (2), and
20    25% of these funds, but in no event more than $50,000,000,
21    shall be allocated to programs described in subparagraph
22    (D) of this paragraph (2). Beginning with the 2019 update
23    to the long-term renewable resource procurement plan
24    authorized by subsection (c) of Section 1-75 of this Act,
25    subject to appropriation and, following the 2021 delivery
26    year, subject to fund availability through the Commission

 

 

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1    process described in subparagraph (Q) of paragraph (1) of
2    subsection (c) of Section 1-75, funds shall be allocated to
3    programs described in subparagraphs (E) and (F) of this
4    paragraph (2). The allocation of funds among subparagraphs
5    (A), (B), or (C) of this paragraph (2) may be changed if
6    the Agency or administrator, through delegated authority,
7    determines incentives in subparagraphs (A), (B), or (C) of
8    this paragraph (2) have not been adequately subscribed to
9    fully utilize the Illinois Power Agency Renewable Energy
10    Resources Fund. The determination shall include input
11    through a stakeholder process. Additionally, if the
12    Commission process described in subparagraph (Q) of
13    paragraph (1) of subsection (c) of Section 1-75 results in
14    an increase in funds available to the Illinois Solar for
15    All program, the Agency shall reallocate the funds among
16    all the various subprograms of the Illinois Solar for All
17    Program to provide funding for the subprograms described in
18    subparagraphs (E) and (F) of this paragraph (2). This
19    reallocation shall involve input through a stakeholder
20    process. The program offerings described in subparagraphs
21    (A) through (D) of this paragraph (2) shall also be
22    implemented through contracts funded from such additional
23    amounts as are allocated to one or more of the programs in
24    the long-term renewable resources procurement plans as
25    specified in subsection (c) of Section 1-75 of this Act and
26    subparagraph (O) of paragraph (1) of such subsection (c).

 

 

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1        Contracts that will be paid with funds in the Illinois
2    Power Agency Renewable Energy Resources Fund shall be
3    executed by the Agency. Contracts that will be paid with
4    funds collected by an electric utility shall be executed by
5    the electric utility.
6        Contracts under the Illinois Solar for All Program
7    shall include an approach, as set forth in the long-term
8    renewable resources procurement plans, to ensure the
9    wholesale market value of the energy is credited to
10    participating low-income customers or organizations and to
11    ensure tangible economic benefits flow directly to program
12    participants, except in the case of low-income
13    multi-family housing where the low-income customer does
14    not directly pay for energy. Priority shall be given to
15    projects that demonstrate meaningful involvement of
16    low-income community members in designing the initial
17    proposals. Acceptable proposals to implement projects must
18    demonstrate the applicant's ability to conduct initial
19    community outreach, education, and recruitment of
20    low-income participants in the community. Projects must
21    include job training opportunities if available, and shall
22    endeavor to coordinate with the job training programs
23    described in paragraph (1) of subsection (a) of Section
24    16-108.12 of the Public Utilities Act.
25            (A) Low-income distributed generation incentive.
26        This program will provide incentives to low-income

 

 

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1        customers, either directly or through solar providers,
2        to increase the participation of low-income households
3        in photovoltaic on-site distributed generation.
4        Companies participating in this program that install
5        solar panels shall commit to hiring job trainees for a
6        portion of their low-income installations, and an
7        administrator shall facilitate partnering the
8        companies that install solar panels with entities that
9        provide solar panel installation job training. It is a
10        goal of this program that a minimum of 25% of the
11        incentives for this program be allocated to projects
12        located within environmental justice communities.
13        Contracts entered into under this paragraph may be
14        entered into with an entity that will develop and
15        administer the program and shall also include
16        contracts for renewable energy credits from the
17        photovoltaic distributed generation that is the
18        subject of the program, as set forth in the long-term
19        renewable resources procurement plan.
20            (B) Low-Income Community Solar Project Initiative.
21        Incentives shall be offered to low-income customers,
22        either directly or through developers, to increase the
23        participation of low-income subscribers of community
24        solar projects. The developer of each project shall
25        identify its partnership with community stakeholders
26        regarding the location, development, and participation

 

 

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1        in the project, provided that nothing shall preclude a
2        project from including an anchor tenant that does not
3        qualify as low-income. Incentives should also be
4        offered to community solar projects that are 100%
5        low-income subscriber owned, which includes low-income
6        households, not-for-profit organizations, and
7        affordable housing owners. It is a goal of this program
8        that a minimum of 25% of the incentives for this
9        program be allocated to community photovoltaic
10        projects in environmental justice communities.
11        Contracts entered into under this paragraph may be
12        entered into with developers and shall also include
13        contracts for renewable energy credits related to the
14        program.
15            (C) Incentives for non-profits and public
16        facilities. Under this program funds shall be used to
17        support on-site photovoltaic distributed renewable
18        energy generation devices to serve the load associated
19        with not-for-profit customers and to support
20        photovoltaic distributed renewable energy generation
21        that uses photovoltaic technology to serve the load
22        associated with public sector customers taking service
23        at public buildings. It is a goal of this program that
24        at least 25% of the incentives for this program be
25        allocated to projects located in environmental justice
26        communities. Contracts entered into under this

 

 

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1        paragraph may be entered into with an entity that will
2        develop and administer the program or with developers
3        and shall also include contracts for renewable energy
4        credits related to the program.
5            (D) Low-Income Community Solar Pilot Projects.
6        Under this program, persons, including, but not
7        limited to, electric utilities, shall propose pilot
8        community solar projects. Community solar projects
9        proposed under this subparagraph (D) may exceed 2,000
10        kilowatts in nameplate capacity, but the amount paid
11        per project under this program may not exceed
12        $20,000,000. Pilot projects must result in economic
13        benefits for the members of the community in which the
14        project will be located. The proposed pilot project
15        must include a partnership with at least one
16        community-based organization. Approved pilot projects
17        shall be competitively bid by the Agency, subject to
18        fair and equitable guidelines developed by the Agency.
19        Funding available under this subparagraph (D) may not
20        be distributed solely to a utility, and at least some
21        funds under this subparagraph (D) must include a
22        project partnership that includes community ownership
23        by the project subscribers. Contracts entered into
24        under this paragraph may be entered into with an entity
25        that will develop and administer the program or with
26        developers and shall also include contracts for

 

 

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1        renewable energy credits related to the program. A
2        project proposed by a utility that is implemented under
3        this subparagraph (D) shall not be included in the
4        utility's rate base ratebase.
5            (E) Energy Sovereignty Distributed Generation
6        Incentive. Beginning with the 2019 update to the
7        long-term renewable resource procurement plan
8        authorized by subsection (c) of Section 1-75 of this
9        Act, subject to appropriation, the Illinois Power
10        Agency shall create a program that provides incentives
11        to low-income customers, either directly or through
12        solar providers, to increase the participation of
13        low-income households in photovoltaic on-site
14        distributed generation in projects that are 100%
15        low-income household owned, which includes low-income
16        households, low-income households in environmental
17        justice communities, not-for-profit organizations
18        providing services to low-income households,
19        affordable housing owners, and community-based limited
20        liability companies providing services to low-income
21        households. The program shall also provide incentives
22        for photovoltaic on-site distributed generation
23        projects that, by no later than 5 years after the
24        device is interconnected at the distribution system
25        level of the utility and energized, are a minimum of
26        49% low-income subscriber owned, which includes

 

 

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1        low-income households, low-income households in
2        environmental justice communities, not-for-profit
3        organizations providing services to low-income
4        households, affordable housing owners, and
5        community-based limited liability companies providing
6        services to low-income households. Companies
7        participating in this program that install solar
8        panels shall commit to hiring job trainees for a
9        portion of their low-income installations, and an
10        administrator shall facilitate partnering the
11        companies that install solar panels with entities that
12        provide solar panel installation job training. It is a
13        goal of this program that a minimum of 25% of the
14        incentives for this program be allocated to projects in
15        environmental justice communities. Contracts entered
16        into under this paragraph may be entered into with an
17        entity that will develop and administer the program and
18        shall also include contracts for renewable energy
19        credits from the photovoltaic distributed generation
20        that is the subject of the program, as set forth in the
21        long-term renewable resources procurement plan.
22            (F) Energy Sovereignty Community Solar Incentive.
23        Beginning with the 2019 update to the long-term
24        renewable resource procurement plan authorized by
25        subsection (c) of Section 1-75 of this Act, subject to
26        appropriation, the Illinois Power Agency shall create

 

 

10100HB3624ham001- 53 -LRB101 09870 JLS 56878 a

1        a program that shall provide incentives to low-income
2        customers, either directly or through developers, to
3        increase the participation of low-income subscribers
4        of community solar projects in projects that are 100%
5        low-income subscriber owned, which includes low-income
6        households, low-income households in environmental
7        justice communities, not-for-profit organizations
8        providing services to low-income households,
9        affordable housing owners, and community-based limited
10        liability companies providing services to low-income
11        households. The program shall also provide incentives
12        for community solar projects that, by no later than 5
13        years after the device is interconnected at the
14        distribution system level of the utility and
15        energized, are a minimum of 49% low-income subscriber
16        owned, which includes low-income households,
17        low-income households in environmental justice
18        communities, not-for-profit organizations providing
19        services to low-income households, affordable housing
20        owners, and community-based limited liability
21        companies providing services to low-income households.
22        The developer of each project shall identify its
23        partnership with community stakeholders regarding the
24        location, development and participation in the
25        project. Companies participating in this program that
26        install solar panels shall commit to hiring job

 

 

10100HB3624ham001- 54 -LRB101 09870 JLS 56878 a

1        trainees for a portion of their low-income
2        installations, and an administrator shall facilitate
3        partnering the companies that install solar panels
4        with entities that provide solar panel installation
5        job training. It is a goal of this program that a
6        minimum of 25% of the incentives for this program be
7        allocated to projects in environmental justice
8        communities. Contracts entered into under this
9        paragraph may be entered into with developers and shall
10        also include contracts for renewable energy credits
11        related to the program.
12        The requirement that a qualified person, as defined in
13    paragraph (1) of subsection (i) of this Section, install
14    photovoltaic devices does not apply to the Illinois Solar
15    for All Program described in this subsection (b).
16        (3) Costs associated with the Illinois Solar for All
17    Program and its components described in paragraph (2) of
18    this subsection (b), including, but not limited to, costs
19    associated with procuring experts, consultants, and the
20    program administrator referenced in this subsection (b)
21    and related incremental costs, and costs related to the
22    evaluation of the Illinois Solar for All Program, may be
23    paid for using monies in the Illinois Power Agency
24    Renewable Energy Resources Fund, but the Agency or program
25    administrator shall strive to minimize costs in the
26    implementation of the program. The Agency shall purchase

 

 

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1    renewable energy credits from generation that is the
2    subject of a contract under subparagraphs (A) through (D)
3    of this paragraph (2) of this subsection (b), and may pay
4    for such renewable energy credits through an upfront
5    payment per installed kilowatt of nameplate capacity paid
6    once the device is interconnected at the distribution
7    system level of the utility and is energized. The payment
8    shall be in exchange for an assignment of all renewable
9    energy credits generated by the system during the first 15
10    years of operation and shall be structured to overcome
11    barriers to participation in the solar market by the
12    low-income community. The incentives provided for in this
13    Section may be implemented through the pricing of renewable
14    energy credits where the prices paid for the credits are
15    higher than the prices from programs offered under
16    subsection (c) of Section 1-75 of this Act to account for
17    the incentives. The Agency shall ensure collaboration with
18    community agencies, and allocate up to 5% of the funds
19    available under the Illinois Solar for All Program to
20    community-based groups to assist in grassroots education
21    efforts related to the Illinois Solar for All Program. The
22    Agency shall retire any renewable energy credits purchased
23    from this program and the credits shall count towards the
24    obligation under subsection (c) of Section 1-75 of this Act
25    for the electric utility to which the project is
26    interconnected.

 

 

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

 

 

10100HB3624ham001- 57 -LRB101 09870 JLS 56878 a

1    modifications to the program through the plan revision
2    process described in Section 16-111.5 of the Public
3    Utilities Act.
4        (5) The Agency shall issue a request for qualifications
5    for a third-party program administrator or administrators
6    to administer all or a portion of the Illinois Solar for
7    All Program. The third-party program administrator shall
8    be chosen through a competitive bid process based on
9    selection criteria and requirements developed by the
10    Agency, including, but not limited to, experience in
11    administering low-income energy programs and overseeing
12    statewide clean energy or energy efficiency services. If
13    the Agency retains a program administrator or
14    administrators to implement all or a portion of the
15    Illinois Solar for All Program, each administrator shall
16    periodically submit reports to the Agency and Commission
17    for each program that it administers, at appropriate
18    intervals to be identified by the Agency in its long-term
19    renewable resources procurement plan, provided that the
20    reporting interval is at least quarterly.
21        (6) The long-term renewable resources procurement plan
22    shall also provide for an independent evaluation of the
23    Illinois Solar for All Program. At least every 2 years, the
24    Agency shall select an independent evaluator to review and
25    report on the Illinois Solar for All Program and the
26    performance of the third-party program administrator of

 

 

10100HB3624ham001- 58 -LRB101 09870 JLS 56878 a

1    the Illinois Solar for All Program. The evaluation shall be
2    based on objective criteria developed through a public
3    stakeholder process. The process shall include feedback
4    and participation from Illinois Solar for All Program
5    stakeholders, including participants and organizations in
6    environmental justice and historically underserved
7    communities. The report shall include a summary of the
8    evaluation of the Illinois Solar for All Program based on
9    the stakeholder developed objective criteria. The report
10    shall include the number of projects installed; the total
11    installed capacity in kilowatts; the average cost per
12    kilowatt of installed capacity to the extent reasonably
13    obtainable by the Agency; the number of jobs or job
14    opportunities created; economic, social, and environmental
15    benefits created; and the total administrative costs
16    expended by the Agency and program administrator to
17    implement and evaluate the program. The report shall be
18    delivered to the Commission and posted on the Agency's
19    website, and shall be used, as needed, to revise the
20    Illinois Solar for All Program. The Commission shall also
21    consider the results of the evaluation as part of its
22    review of the long-term renewable resources procurement
23    plan under subsection (c) of Section 1-75 of this Act.
24        (7) If additional funding for the programs described in
25    this subsection (b) is available under subsection (k) of
26    Section 16-108 of the Public Utilities Act, then the Agency

 

 

10100HB3624ham001- 59 -LRB101 09870 JLS 56878 a

1    shall submit a procurement plan to the Commission no later
2    than September 1, 2018, that proposes how the Agency will
3    procure programs on behalf of the applicable utility. After
4    notice and hearing, the Commission shall approve, or
5    approve with modification, the plan no later than November
6    1, 2018.
7        (8) Beginning with the 2019 update to the long-term
8    renewable resources procurement plan authorized by
9    subsection (c) of Section 1-75 of this Act, subject to
10    appropriation and, following the 2021 delivery year,
11    subject to fund availability through the Commission
12    process described in subparagraph (Q) of paragraph (1) of
13    subsection (c) of Section 1-75, the Illinois Power Agency
14    shall propose an expansion of the Illinois Solar for All
15    Program. The expansion shall have as a goal quadrupling the
16    annual installed capacity in kilowatts under subparagraphs
17    (A), (B), and (C) of paragraph (2) as well as quintupling
18    the grassroots education efforts under paragraph (3) of
19    this subsection.
20    As used in this subsection (b), "low-income households"
21means persons and families whose income does not exceed 80% of
22area median income, adjusted for family size and revised every
235 years.
24    For the purposes of this subsection (b), the Agency shall
25define "environmental justice community" based on
26methodologies and findings established by the Illinois Power

 

 

10100HB3624ham001- 60 -LRB101 09870 JLS 56878 a

1Agency and its Administrator for the Illinois Solar for All
2Program in its initial long-term renewable resources
3procurement plan and updated by the Illinois Power Agency and
4its Administrator for the Illinois Solar for All Program as
5part of the long-term renewable resources procurement plan
6update as part of long-term renewable resources procurement
7plan development, to ensure, to the extent practicable,
8compatibility with other agencies' definitions and may, for
9guidance, look to the definitions used by federal, state, or
10local governments.
11    (b-5) After the receipt of all payments required by Section
1216-115D of the Public Utilities Act, no additional funds shall
13be deposited into the Illinois Power Agency Renewable Energy
14Resources Fund unless directed by order of the Commission.
15    (b-10) After the receipt of all payments required by
16Section 16-115D of the Public Utilities Act and payment in full
17of all contracts executed by the Agency under subsections (b)
18and (i) of this Section, if the balance of the Illinois Power
19Agency Renewable Energy Resources Fund is under $5,000, then
20the Fund shall be inoperative and any remaining funds and any
21funds submitted to the Fund after that date, shall be
22transferred to the Supplemental Low-Income Energy Assistance
23Fund for use in the Low-Income Home Energy Assistance Program,
24as authorized by the Energy Assistance Act.
25    (c) (Blank).
26    (d) (Blank).

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    procurement process held pursuant to this Section,
2    including, but not limited to, the cost of developing the
3    supplemental procurement plan, the procurement
4    administrator, procurement monitor, and the cost of the
5    retirement of renewable energy credits purchased pursuant
6    to the supplemental procurement shall be paid for from the
7    Illinois Power Agency Renewable Energy Resources Fund. The
8    Agency shall enter into an interagency agreement with the
9    Commission to reimburse the Commission for its costs
10    associated with the procurement monitor for the
11    supplemental procurement process.
12(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)
 
13    (20 ILCS 3855/1-75)
14    Sec. 1-75. Planning and Procurement Bureau. The Planning
15and Procurement Bureau has the following duties and
16responsibilities:
17    (a) The Planning and Procurement Bureau shall each year,
18beginning in 2008, develop procurement plans and conduct
19competitive procurement processes in accordance with the
20requirements of Section 16-111.5 of the Public Utilities Act
21for the eligible retail customers of electric utilities that on
22December 31, 2005 provided electric service to at least 100,000
23customers in Illinois. Beginning with the delivery year
24commencing on June 1, 2017, the Planning and Procurement Bureau
25shall develop plans and processes for the procurement of zero

 

 

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1emission credits from zero emission facilities in accordance
2with the requirements of subsection (d-5) of this Section. The
3Planning and Procurement Bureau shall also develop procurement
4plans and conduct competitive procurement processes in
5accordance with the requirements of Section 16-111.5 of the
6Public Utilities Act for the eligible retail customers of small
7multi-jurisdictional electric utilities that (i) on December
831, 2005 served less than 100,000 customers in Illinois and
9(ii) request a procurement plan for their Illinois
10jurisdictional load. This Section shall not apply to a small
11multi-jurisdictional utility until such time as a small
12multi-jurisdictional utility requests the Agency to prepare a
13procurement plan for their Illinois jurisdictional load. For
14the purposes of this Section, the term "eligible retail
15customers" has the same definition as found in Section
1616-111.5(a) of the Public Utilities Act.
17    Beginning with the plan or plans to be implemented in the
182017 delivery year, the Agency shall no longer include the
19procurement of renewable energy resources in the annual
20procurement plans required by this subsection (a), except as
21provided in subsection (q) of Section 16-111.5 of the Public
22Utilities Act and subsection (j) of this Section, and shall
23instead develop a long-term renewable resources procurement
24plan in accordance with subsection (c) of this Section and
25Section 16-111.5 of the Public Utilities Act.
26        (1) The Agency shall each year, beginning in 2008, as

 

 

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

 

 

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

 

 

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1    provide each qualified expert's or expert consulting
2    firm's response to the request for qualifications. All
3    information provided under this subparagraph shall also be
4    provided to the Commission. The Agency may provide by rule
5    for fees associated with supplying the information to
6    utilities and other interested parties. These parties
7    shall, within 5 business days, notify the Agency in writing
8    if they object to any experts or expert consulting firms on
9    the lists. Objections shall be based on:
10            (A) failure to satisfy qualification criteria;
11            (B) identification of a conflict of interest; or
12            (C) evidence of inappropriate bias for or against
13        potential bidders or the affected utilities.
14        The Agency shall remove experts or expert consulting
15    firms from the lists within 10 days if there is a
16    reasonable basis for an objection and provide the updated
17    lists to the affected utilities and other interested
18    parties. If the Agency fails to remove an expert or expert
19    consulting firm from a list, an objecting party may seek
20    review by the Commission within 5 days thereafter by filing
21    a petition, and the Commission shall render a ruling on the
22    petition within 10 days. There is no right of appeal of the
23    Commission's ruling.
24        (4) The Agency shall issue requests for proposals to
25    the qualified experts or expert consulting firms to develop
26    a procurement plan for the affected utilities and to serve

 

 

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1    as procurement administrator.
2        (5) The Agency shall select an expert or expert
3    consulting firm to develop procurement plans based on the
4    proposals submitted and shall award contracts of up to 5
5    years to those selected.
6        (6) The Agency shall select an expert or expert
7    consulting firm, with approval of the Commission, to serve
8    as procurement administrator based on the proposals
9    submitted. If the Commission rejects, within 5 days, the
10    Agency's selection, the Agency shall submit another
11    recommendation within 3 days based on the proposals
12    submitted. The Agency shall award a 5-year contract to the
13    expert or expert consulting firm so selected with
14    Commission approval.
15    (b) The experts or expert consulting firms retained by the
16Agency shall, as appropriate, prepare procurement plans, and
17conduct a competitive procurement process as prescribed in
18Section 16-111.5 of the Public Utilities Act, to ensure
19adequate, reliable, affordable, efficient, and environmentally
20sustainable electric service at the lowest total cost over
21time, taking into account any benefits of price stability, for
22eligible retail customers of electric utilities that on
23December 31, 2005 provided electric service to at least 100,000
24customers in the State of Illinois, and for eligible Illinois
25retail customers of small multi-jurisdictional electric
26utilities that (i) on December 31, 2005 served less than

 

 

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1100,000 customers in Illinois and (ii) request a procurement
2plan for their Illinois jurisdictional load.
3    (c) Renewable portfolio standard.
4        (1)(A) The Agency shall develop a long-term renewable
5    resources procurement plan that shall include procurement
6    programs and competitive procurement events necessary to
7    meet the goals set forth in this subsection (c). The
8    initial long-term renewable resources procurement plan
9    shall be released for comment no later than 160 days after
10    June 1, 2017 (the effective date of Public Act 99-906). The
11    Agency shall review, and may revise on an expedited basis,
12    the long-term renewable resources procurement plan at
13    least every 2 years, which shall be conducted in
14    conjunction with the procurement plan under Section
15    16-111.5 of the Public Utilities Act to the extent
16    practicable to minimize administrative expense. The
17    long-term renewable resources procurement plans shall be
18    subject to review and approval by the Commission under
19    Section 16-111.5 of the Public Utilities Act.
20        (B) Subject to subparagraph (F) of this paragraph (1),
21    the long-term renewable resources procurement plan shall
22    include the goals for procurement of renewable energy
23    credits to meet at least the following overall percentages:
24    13% by the 2017 delivery year; increasing by at least 1.5%
25    each delivery year thereafter to at least 25% by the 2025
26    delivery year; increasing by at least 4% each delivery year

 

 

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1    after the 2025 delivery year to at least 45% by 2030;
2    increasing by at least 3% each delivery year after the 2030
3    delivery year to at least 60% by 2035, 75% by 2040, and 90%
4    by 2045; increasing by at least 2% each delivery year after
5    the 2045 delivery year to 100% by the 2050 delivery year
6    and continuing at 100% no less than 25% for each delivery
7    year thereafter. In the event of a conflict between these
8    goals and the new wind and new photovoltaic procurement
9    requirements described in items (i) through (iii) of
10    subparagraph (C) and items (i) and (ii) of subparagraph (P)
11    of this paragraph (1), the long-term plan shall prioritize
12    compliance with the new wind and new photovoltaic
13    procurement requirements described in items (i) through
14    (iii) of subparagraph (C) and items (i) and (ii) of
15    subparagraph (P) of this paragraph (1) over the annual
16    percentage targets described in this subparagraph (B). The
17    Agency shall not comply with the annual percentage targets
18    described in this subparagraph (B) by procuring renewable
19    energy credits on the spot market that are unlikely to lead
20    to the development of new renewable resources.
21        For the delivery year beginning June 1, 2017, the
22    procurement plan shall include cost-effective renewable
23    energy resources equal to at least 13% of each utility's
24    load for eligible retail customers and 13% of the
25    applicable portion of each utility's load for retail
26    customers who are not eligible retail customers, which

 

 

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1    applicable portion shall equal 50% of the utility's load
2    for retail customers who are not eligible retail customers
3    on February 28, 2017.
4        For the delivery year beginning June 1, 2018, the
5    procurement plan shall include cost-effective renewable
6    energy resources equal to at least 14.5% of each utility's
7    load for eligible retail customers and 14.5% of the
8    applicable portion of each utility's load for retail
9    customers who are not eligible retail customers, which
10    applicable portion shall equal 75% of the utility's load
11    for retail customers who are not eligible retail customers
12    on February 28, 2017.
13        For the delivery year beginning June 1, 2019, and for
14    each year thereafter, the procurement plans shall include
15    cost-effective renewable energy resources equal to a
16    minimum percentage of each utility's load for all retail
17    customers as follows: 16% by June 1, 2019; increasing by
18    1.5% each year thereafter to 25% by June 1, 2025;
19    increasing by at least 4% each year thereafter to at least
20    45% by June 1, 2030; increasing by at least 3% each year
21    thereafter to at least 90% by June 1, 2045; increasing by
22    at least 2% each year thereafter to at least 100% by June
23    1, 2050 and 25% by June 1, 2026 and each year thereafter.
24        For each delivery year, the Agency shall first
25    recognize each utility's obligations for that delivery
26    year under existing contracts. Any renewable energy

 

 

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1    credits under existing contracts, including renewable
2    energy credits as part of renewable energy resources, shall
3    be used to meet the goals set forth in this subsection (c)
4    for the delivery year.
5        (C) Of the renewable energy credits procured under this
6    subsection (c), at least 75% shall come from wind and
7    photovoltaic projects. The long-term renewable resources
8    procurement plan described in subparagraph (A) of this
9    paragraph (1) shall include the procurement of renewable
10    energy credits in amounts equal to at least the following:
11            (i) By the end of the 2020 delivery year:
12                At least 2,000,000 renewable energy credits
13            for each delivery year shall come from new wind
14            projects; and
15                At least 2,000,000 renewable energy credits
16            for each delivery year shall come from new
17            photovoltaic projects; of that amount, to the
18            extent possible, the Agency shall procure: at
19            least 50% from solar photovoltaic projects using
20            the program outlined in subparagraph (K) of this
21            paragraph (1) from distributed renewable energy
22            generation devices or community renewable
23            generation projects; at least 40% from
24            utility-scale solar projects; at least 2% from
25            brownfield site photovoltaic projects that are not
26            community renewable generation projects; and the

 

 

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1            remainder shall be determined through the
2            long-term planning process described in
3            subparagraph (A) of this paragraph (1).
4            (ii) By the end of the 2025 delivery year:
5                At least 3,000,000 renewable energy credits
6            for each delivery year shall come from new wind
7            projects; and
8                At least 3,000,000 renewable energy credits
9            for each delivery year shall come from new
10            photovoltaic projects; of that amount, to the
11            extent possible, the Agency shall procure: at
12            least 50% from solar photovoltaic projects using
13            the program outlined in subparagraph (K) of this
14            paragraph (1) from distributed renewable energy
15            devices or community renewable generation
16            projects; at least 40% from utility-scale solar
17            projects; at least 2% from brownfield site
18            photovoltaic projects that are not community
19            renewable generation projects; and the remainder
20            shall be determined through the long-term planning
21            process described in subparagraph (A) of this
22            paragraph (1).
23            (iii) By the end of the 2030 delivery year:
24                At least 4,000,000 renewable energy credits
25            for each delivery year shall come from new wind
26            projects; and

 

 

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1                At least 4,000,000 renewable energy credits
2            for each delivery year shall come from new
3            photovoltaic projects; of that amount, to the
4            extent possible, the Agency shall procure: at
5            least 50% from solar photovoltaic projects using
6            the program outlined in subparagraph (K) of this
7            paragraph (1) from distributed renewable energy
8            devices or community renewable generation
9            projects; at least 40% from utility-scale solar
10            projects; at least 2% from brownfield site
11            photovoltaic projects that are not community
12            renewable generation projects; and the remainder
13            shall be determined through the long-term planning
14            process described in subparagraph (A) of this
15            paragraph (1).
16            For purposes of this Section:
17                "New wind projects" means wind renewable
18            energy facilities that are energized after June 1,
19            2017 for the delivery year commencing June 1, 2017
20            or within 3 years after the date the Commission
21            approves contracts for subsequent delivery years.
22                "New photovoltaic projects" means photovoltaic
23            renewable energy facilities that are energized
24            after June 1, 2017. Photovoltaic projects
25            developed under Section 1-56 of this Act shall not
26            apply towards the new photovoltaic project

 

 

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1            requirements in this subparagraph (C).
2        (D) Renewable energy credits shall be cost effective.
3    For purposes of this subsection (c), "cost effective" means
4    that the costs of procuring renewable energy resources do
5    not cause the limit stated in subparagraph (E) of this
6    paragraph (1) to be exceeded and, for renewable energy
7    credits procured through a competitive procurement event,
8    do not exceed benchmarks based on market prices for like
9    products in the region. For purposes of this subsection
10    (c), "like products" means contracts for renewable energy
11    credits from the same or substantially similar technology,
12    same or substantially similar vintage (new or existing),
13    the same or substantially similar quantity, and the same or
14    substantially similar contract length and structure.
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

 

 

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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 purposes
19    of this subsection (c), the total amount paid for electric
20    service includes without limitation amounts paid for
21    supply, transmission, distribution, surcharges, and add-on
22    taxes.
23        Notwithstanding the requirements of this subsection
24    (c), the total of renewable energy resources procured under
25    the procurement plan for any single year shall be subject
26    to the limitations of this subparagraph (E). Such

 

 

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1    procurement shall be reduced for all retail customers based
2    on the amount necessary to limit the annual estimated
3    average net increase due to the costs of these resources
4    included in the amounts paid by eligible retail customers
5    in connection with electric service to no more than the
6    greater of 2.015% of the amount paid per kilowatthour by
7    those customers during the year ending May 31, 2007 or the
8    incremental amount per kilowatthour paid for these
9    resources in 2011. To arrive at a maximum dollar amount of
10    renewable energy resources to be procured for the
11    particular delivery year, the resulting per kilowatthour
12    amount shall be applied to the actual amount of
13    kilowatthours of electricity delivered, or applicable
14    portion of such amount as specified in paragraph (1) of
15    this subsection (c), as applicable, by the electric utility
16    in the delivery year immediately prior to the procurement
17    to all retail customers in its service territory. The
18    calculations required by this subparagraph (E) shall be
19    made only once for each delivery year at the time that the
20    renewable energy resources are procured. Once the
21    determination as to the amount of renewable energy
22    resources to procure is made based on the calculations set
23    forth in this subparagraph (E) and the contracts procuring
24    those amounts are executed, no subsequent rate impact
25    determinations shall be made and no adjustments to those
26    contract amounts shall be allowed. All costs incurred under

 

 

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

 

 

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

 

 

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1        renewable energy credits delivered annually from new
2        utility-scale solar projects and brownfield site
3        photovoltaic projects to begin delivery on June 1,
4        2019, if available, but not later than June 1, 2021.
5        The Agency may structure this initial procurement in
6        one or more discrete procurement events. Payments to
7        suppliers of renewable energy credits shall commence
8        upon delivery. Renewable energy credits procured under
9        this initial procurement shall be included in the
10        Agency's long-term plan and shall apply to all
11        renewable energy goals in this subsection (c).
12            (iii) Subsequent forward procurements for
13        utility-scale wind projects shall solicit at least
14        1,000,000 renewable energy credits delivered annually
15        per procurement event and shall be planned, scheduled,
16        and designed such that the cumulative amount of
17        renewable energy credits delivered from all new wind
18        projects in each delivery year shall not exceed the
19        Agency's projection of the cumulative amount of
20        renewable energy credits that will be delivered from
21        all new photovoltaic projects, including utility-scale
22        and distributed photovoltaic devices, in the same
23        delivery year at the time scheduled for wind contract
24        delivery.
25            (iv) If, at any time after the time set for
26        delivery of renewable energy credits pursuant to the

 

 

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1        initial procurements in items (i) and (ii) of this
2        subparagraph (G), the cumulative amount of renewable
3        energy credits projected to be delivered from all new
4        wind projects in a given delivery year exceeds the
5        cumulative amount of renewable energy credits
6        projected to be delivered from all new photovoltaic
7        projects in that delivery year by 200,000 or more
8        renewable energy credits, then the Agency shall within
9        60 days adjust the procurement programs in the
10        long-term renewable resources procurement plan to
11        ensure that the projected cumulative amount of
12        renewable energy credits to be delivered from all new
13        wind projects does not exceed the projected cumulative
14        amount of renewable energy credits to be delivered from
15        all new photovoltaic projects by 200,000 or more
16        renewable energy credits, provided that nothing in
17        this Section shall preclude the projected cumulative
18        amount of renewable energy credits to be delivered from
19        all new photovoltaic projects from exceeding the
20        projected cumulative amount of renewable energy
21        credits to be delivered from all new wind projects in
22        each delivery year and provided further that nothing in
23        this item (iv) shall require the curtailment of an
24        executed contract. The Agency shall update, on a
25        quarterly basis, its projection of the renewable
26        energy credits to be delivered from all projects in

 

 

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1        each delivery year. Notwithstanding anything to the
2        contrary, the Agency may adjust the timing of
3        procurement events conducted under this subparagraph
4        (G). The long-term renewable resources procurement
5        plan shall set forth the process by which the
6        adjustments may be made.
7            (v) All procurements under this subparagraph (G)
8        shall comply with the geographic requirements in
9        subparagraph (I) of this paragraph (1) and shall follow
10        the procurement processes and procedures described in
11        this Section and Section 16-111.5 of the Public
12        Utilities Act to the extent practicable, and these
13        processes and procedures may be expedited to
14        accommodate the schedule established by this
15        subparagraph (G).
16        (H) The procurement of renewable energy resources for a
17    given delivery year shall be reduced as described in this
18    subparagraph (H) if an alternative retail electric
19    supplier meets the requirements described in this
20    subparagraph (H).
21            (i) Within 45 days after June 1, 2017 (the
22        effective date of Public Act 99-906), an alternative
23        retail electric supplier or its successor shall submit
24        an informational filing to the Illinois Commerce
25        Commission certifying that, as of December 31, 2015,
26        the alternative retail electric supplier owned one or

 

 

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1        more electric generating facilities that generates
2        renewable energy resources as defined in Section 1-10
3        of this Act, provided that such facilities are not
4        powered by wind or photovoltaics, and the facilities
5        generate one renewable energy credit for each
6        megawatthour of energy produced from the facility.
7            The informational filing shall identify each
8        facility that was eligible to satisfy the alternative
9        retail electric supplier's obligations under Section
10        16-115D of the Public Utilities Act as described in
11        this item (i).
12            (ii) For a given delivery year, the alternative
13        retail electric supplier may elect to supply its retail
14        customers with renewable energy credits from the
15        facility or facilities described in item (i) of this
16        subparagraph (H) that continue to be owned by the
17        alternative retail electric supplier.
18            (iii) The alternative retail electric supplier
19        shall notify the Agency and the applicable utility, no
20        later than February 28 of the year preceding the
21        applicable delivery year or 15 days after June 1, 2017
22        (the effective date of Public Act 99-906), whichever is
23        later, of its election under item (ii) of this
24        subparagraph (H) to supply renewable energy credits to
25        retail customers of the utility. Such election shall
26        identify the amount of renewable energy credits to be

 

 

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

 

 

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

 

 

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1        quantity. The supplier's target renewable energy
2        credit quantity for the delivery year beginning June 1,
3        2018 is 14.5% multiplied by the total amount of metered
4        electricity (megawatt-hours) delivered by the
5        alternative retail supplier in that delivery year,
6        provided that the 14.5% shall increase by 1.5% each
7        delivery year thereafter to 25% by the delivery year
8        beginning June 1, 2025, and thereafter the 25% value
9        shall apply to each delivery year.
10            On or before April 1 of each year, the Agency shall
11        annually publish a report on its website that
12        identifies the aggregate amount of renewable energy
13        credits supplied by alternative retail electric
14        suppliers under this subparagraph (H).
15        (I) The Agency shall design its long-term renewable
16    energy procurement plan to maximize the State's interest in
17    the health, safety, and welfare of its residents, including
18    but not limited to minimizing sulfur dioxide, nitrogen
19    oxide, particulate matter and other pollution that
20    adversely affects public health in this State, increasing
21    fuel and resource diversity in this State, enhancing the
22    reliability and resiliency of the electricity distribution
23    system in this State, meeting goals to limit carbon dioxide
24    emissions under federal or State law, and contributing to a
25    cleaner and healthier environment for the citizens of this
26    State. In order to further these legislative purposes,

 

 

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1    renewable energy credits shall be eligible to be counted
2    toward the renewable energy requirements of this
3    subsection (c) if they are generated from facilities
4    located in this State. The Agency may qualify renewable
5    energy credits from facilities located in states adjacent
6    to Illinois if the generator demonstrates and the Agency
7    determines that the operation of such facility or
8    facilities will help promote the State's interest in the
9    health, safety, and welfare of its residents based on the
10    public interest criteria described above. To ensure that
11    the public interest criteria are applied to the procurement
12    and given full effect, the Agency's long-term procurement
13    plan shall describe in detail how each public interest
14    factor shall be considered and weighted for facilities
15    located in states adjacent to Illinois.
16        (J) In order to promote the competitive development of
17    renewable energy resources in furtherance of the State's
18    interest in the health, safety, and welfare of its
19    residents, renewable energy credits shall not be eligible
20    to be counted toward the renewable energy requirements of
21    this subsection (c) if they are sourced from a generating
22    unit whose costs were being recovered through rates
23    regulated by this State or any other state or states on or
24    after January 1, 2017. Each contract executed to purchase
25    renewable energy credits under this subsection (c) shall
26    provide for the contract's termination if the costs of the

 

 

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1    generating unit supplying the renewable energy credits
2    subsequently begin to be recovered through rates regulated
3    by this State or any other state or states; and each
4    contract shall further provide that, in that event, the
5    supplier of the credits must return 110% of all payments
6    received under the contract. Amounts returned under the
7    requirements of this subparagraph (J) shall be retained by
8    the utility and all of these amounts shall be used for the
9    procurement of additional renewable energy credits from
10    new wind or new photovoltaic resources as defined in this
11    subsection (c). The long-term plan shall provide that these
12    renewable energy credits shall be procured in the next
13    procurement event.
14        Notwithstanding the limitations of this subparagraph
15    (J), renewable energy credits sourced from generating
16    units that are constructed, purchased, owned, or leased by
17    an electric utility as part of an approved project,
18    program, or pilot under Section 1-56 of this Act shall be
19    eligible to be counted toward the renewable energy
20    requirements of this subsection (c), regardless of how the
21    costs of these units are recovered.
22        (K) The long-term renewable resources procurement plan
23    developed by the Agency in accordance with subparagraph (A)
24    of this paragraph (1) shall include an Adjustable Block
25    program for the procurement of renewable energy credits
26    from new photovoltaic projects that are distributed

 

 

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1    renewable energy generation devices or new photovoltaic
2    community renewable generation projects. The Adjustable
3    Block program shall be designed to provide a transparent
4    schedule of prices and quantities to enable the
5    photovoltaic market to scale up and for renewable energy
6    credit prices to adjust at a predictable rate over time.
7    The prices set by the Adjustable Block program can be
8    reflected as a set value or as the product of a formula.
9        The Adjustable Block program shall include for each
10    category of eligible projects: a schedule of standard block
11    purchase prices to be offered; a series of steps, with
12    associated nameplate capacity and purchase prices that
13    adjust from step to step; and automatic opening of the next
14    step as soon as the nameplate capacity and available
15    purchase prices for an open step are fully committed or
16    reserved. Only projects energized on or after June 1, 2017
17    shall be eligible for the Adjustable Block program. For
18    each block group the Agency shall determine the number of
19    blocks, the amount of generation capacity in each block,
20    and the purchase price for each block, provided that the
21    purchase price provided and the total amount of generation
22    in all blocks for all block groups shall be sufficient to
23    meet the goals in this subsection (c). The Agency may
24    periodically review its prior decisions establishing the
25    number of blocks, the amount of generation capacity in each
26    block, and the purchase price for each block, and may

 

 

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1    propose, on an expedited basis, changes to these previously
2    set values, including but not limited to redistributing
3    these amounts and the available funds as necessary and
4    appropriate, subject to Commission approval as part of the
5    periodic plan revision process described in Section
6    16-111.5 of the Public Utilities Act. The Agency may define
7    different block sizes, purchase prices, or other distinct
8    terms and conditions for projects located in different
9    utility service territories if the Agency deems it
10    necessary to meet the goals in this subsection (c).
11        The Adjustable Block program shall include at least the
12    following block groups in at least the following amounts,
13    which may be adjusted upon review by the Agency and
14    approval by the Commission as described in this
15    subparagraph (K):
16            (i) At least 25% from distributed renewable energy
17        generation devices with a nameplate capacity of no more
18        than 10 kilowatts.
19            (ii) At least 25% from distributed renewable
20        energy generation devices with a nameplate capacity of
21        more than 10 kilowatts and no more than 2,000
22        kilowatts. The Agency may create sub-categories within
23        this category to account for the differences between
24        projects for small commercial customers, large
25        commercial customers, and public or non-profit
26        customers.

 

 

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1            (iii) At least 25% from photovoltaic community
2        renewable generation projects.
3            (iv) The remaining 25% shall be allocated as
4        specified by the Agency in the long-term renewable
5        resources procurement plan.
6        The Adjustable Block program shall be designed to
7    ensure that renewable energy credits are procured from
8    photovoltaic distributed renewable energy generation
9    devices and new photovoltaic community renewable energy
10    generation projects in diverse locations, including urban
11    and rural areas, and are not concentrated in a few
12    geographic areas or excluding particular geographic areas.
13        The Adjustable Block Program shall be designed to
14    prioritize the procurement of renewable energy credits
15    from new photovoltaic community renewable energy projects
16    that are organized by local communities, sited in the
17    communities they serve, or are also brownfield site
18    photovoltaic projects, as defined in Section 1-10 of this
19    Act, for a portion of the overall renewable energy credits
20    to be procured from new photovoltaic community renewable
21    energy projects.
22        (L) The procurement of photovoltaic renewable energy
23    credits under items (i) through (iv) of subparagraph (K) of
24    this paragraph (1) shall be subject to the following
25    contract and payment terms:
26            (i) The Agency shall procure contracts of at least

 

 

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1        15 years in length.
2            (ii) For those renewable energy credits that
3        qualify and are procured under item (i) of subparagraph
4        (K) of this paragraph (1), the renewable energy credit
5        purchase price shall be paid in full by the contracting
6        utilities at the time that the facility producing the
7        renewable energy credits is interconnected at the
8        distribution system level of the utility and
9        energized. The electric utility shall receive and
10        retire all renewable energy credits generated by the
11        project for the first 15 years of operation.
12            (iii) For those renewable energy credits that
13        qualify and are procured under item (ii) and (iii) of
14        subparagraph (K) of this paragraph (1) and any
15        additional categories of distributed generation
16        included in the long-term renewable resources
17        procurement plan and approved by the Commission, 20
18        percent of the renewable energy credit purchase price
19        shall be paid by the contracting utilities at the time
20        that the facility producing the renewable energy
21        credits is interconnected at the distribution system
22        level of the utility and energized. The remaining
23        portion shall be paid ratably over the subsequent
24        4-year period. The electric utility shall receive and
25        retire all renewable energy credits generated by the
26        project for the first 15 years of operation.

 

 

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1            (iv) Each contract shall include provisions to
2        ensure the delivery of the renewable energy credits for
3        the full term of the contract.
4            (v) 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            (vi) If, at any time, approved applications for the
11        Adjustable Block program exceed funds collected by the
12        electric utility or would cause the Agency to exceed
13        the limitation described in subparagraph (E) of this
14        paragraph (1) on the amount of renewable energy
15        resources that may be procured, then the Agency shall
16        consider future uncommitted funds to be reserved for
17        these contracts on a first-come, first-served basis,
18        with the delivery of renewable energy credits required
19        beginning at the time that the reserved funds become
20        available.
21            (vii) Nothing in this Section shall require the
22        utility to advance any payment or pay any amounts that
23        exceed the actual amount of revenues collected by the
24        utility under paragraph (6) of this subsection (c) and
25        subsection (k) of Section 16-108 of the Public
26        Utilities Act, and contracts executed under this

 

 

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1        Section shall expressly incorporate this limitation.
2        (M) The Agency shall be authorized to retain one or
3    more experts or expert consulting firms to develop,
4    administer, implement, operate, and evaluate the
5    Adjustable Block program described in subparagraph (K) of
6    this paragraph (1), and the Agency shall retain the
7    consultant or consultants in the same manner, to the extent
8    practicable, as the Agency retains others to administer
9    provisions of this Act, including, but not limited to, the
10    procurement administrator. The selection of experts and
11    expert consulting firms and the procurement process
12    described in this subparagraph (M) are exempt from the
13    requirements of Section 20-10 of the Illinois Procurement
14    Code, under Section 20-10 of that Code. The Agency shall
15    strive to minimize administrative expenses in the
16    implementation of the Adjustable Block program.
17        The Agency and its consultant or consultants shall
18    monitor block activity, share program activity with
19    stakeholders and conduct regularly scheduled meetings to
20    discuss program activity and market conditions. If
21    necessary, the Agency may make prospective administrative
22    adjustments to the Adjustable Block program design, such as
23    redistributing available funds or making adjustments to
24    purchase prices as necessary to achieve the goals of this
25    subsection (c). Program modifications to any price,
26    capacity block, or other program element that do not

 

 

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1    deviate from the Commission's approved value by more than
2    25% shall take effect immediately and are not subject to
3    Commission review and approval. Program modifications to
4    any price, capacity block, or other program element that
5    deviate more than 25% from the Commission's approved value
6    must be approved by the Commission as a long-term plan
7    amendment under Section 16-111.5 of the Public Utilities
8    Act. The Agency shall consider stakeholder feedback when
9    making adjustments to the Adjustable Block design and shall
10    notify stakeholders in advance of any planned changes.
11        (N) The long-term renewable resources procurement plan
12    required by this subsection (c) shall include a community
13    renewable generation program. The Agency shall establish
14    the terms, conditions, and program requirements for
15    community renewable generation projects with a goal to
16    expand renewable energy generating facility access to a
17    broader group of energy consumers, to ensure robust
18    participation opportunities for residential and small
19    commercial customers and those who cannot install
20    renewable energy on their own properties. Any plan approved
21    by the Commission shall allow subscriptions to community
22    renewable generation projects to be portable and
23    transferable. For purposes of this subparagraph (N),
24    "portable" means that subscriptions may be retained by the
25    subscriber even if the subscriber relocates or changes its
26    address within the same utility service territory; and

 

 

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1    "transferable" means that a subscriber may assign or sell
2    subscriptions to another person within the same utility
3    service territory.
4        Electric utilities shall provide a monetary credit to a
5    subscriber's subsequent bill for service for the
6    proportional output of a community renewable generation
7    project attributable to that subscriber as specified in
8    Section 16-107.5 of the Public Utilities Act.
9        The Agency shall purchase renewable energy credits
10    from subscribed shares of photovoltaic community renewable
11    generation projects through the Adjustable Block program
12    described in subparagraph (K) of this paragraph (1) or
13    through the Illinois Solar for All Program described in
14    Section 1-56 of this Act. The electric utility shall
15    purchase any unsubscribed energy from community renewable
16    generation projects that are Qualifying Facilities ("QF")
17    under the electric utility's tariff for purchasing the
18    output from QFs under Public Utilities Regulatory Policies
19    Act of 1978.
20        The owners of and any subscribers to a community
21    renewable generation project shall not be considered
22    public utilities or alternative retail electricity
23    suppliers under the Public Utilities Act solely as a result
24    of their interest in or subscription to a community
25    renewable generation project and shall not be required to
26    become an alternative retail electric supplier by

 

 

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1    participating in a community renewable generation project
2    with a public utility.
3        (O) For the delivery year beginning June 1, 2018, the
4    long-term renewable resources procurement plan required by
5    this subsection (c) shall provide for the Agency to procure
6    contracts to continue offering the Illinois Solar for All
7    Program described in subsection (b) of Section 1-56 of this
8    Act, and the contracts approved by the Commission shall be
9    executed by the utilities that are subject to this
10    subsection (c). The long-term renewable resources
11    procurement plan shall allocate 5% of the funds available
12    under the plan for the applicable delivery year, or
13    $10,000,000 per delivery year, whichever is greater, to
14    fund the programs, and the plan shall determine the amount
15    of funding to be apportioned to the programs identified in
16    subsection (b) of Section 1-56 of this Act; provided that
17    for the delivery years beginning June 1, 2017, June 1,
18    2021, and June 1, 2025, the long-term renewable resources
19    procurement plan shall allocate 10% of the funds available
20    under the plan for the applicable delivery year, or
21    $20,000,000 per delivery year, whichever is greater, and
22    $10,000,000 of such funds in such year shall be used by an
23    electric utility that serves more than 3,000,000 retail
24    customers in the State to implement a Commission-approved
25    plan under Section 16-108.12 of the Public Utilities Act.
26    In making the determinations required under this

 

 

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1    subparagraph (O), the Commission shall consider the
2    experience and performance under the programs and any
3    evaluation reports. The Commission shall also provide for
4    an independent evaluation of those programs on a periodic
5    basis that are funded under this subparagraph (O).
6        (P) For the delivery year beginning June 1, 2021, the
7    long-term renewable resources procurement plan required by
8    this subsection (c) shall also include and account for the
9    annual procurement of new long-term contracts, including
10    bundled contracts, as described in subsection (j) of this
11    Section, from new wind projects and new photovoltaic
12    projects such that, by the end of the 2030 delivery year:
13            (i) at least 25,000,000 renewable energy credits
14        for each delivery year shall come from new wind
15        projects; and
16            (ii) at least 25,000,000 renewable energy credits
17        for each delivery year shall come from new photovoltaic
18        projects.
19        The gradual increase in renewable resource procurement
20    discussed in this subparagraph (P) shall involve annual
21    procurements of new wind and new photovoltaic projects and,
22    in the case of the Adjustable Block Program created by
23    subparagraph (K) of this subsection (c), the annual release
24    of new blocks of capacity each year with the goal of
25    encouraging stability and steady growth in the solar market
26    and avoiding boom-bust cycles.

 

 

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1        In developing the long-term renewable resources
2    procurement plan, the Agency shall develop bidding
3    criteria to account for the ability of new photovoltaic and
4    wind projects to deliver additional benefits for Illinois
5    such as agriculture and pollinator-friendly projects,
6    brownfield redevelopment, water-pollution buffers, and
7    other land-use or environmental benefits.
8        In this Section:
9        "New wind projects" means wind renewable energy
10    facilities that are energized after June 1, 2017 for the
11    delivery year commencing June 1, 2017 or within 3 years
12    after the date the Commission approves contracts for
13    subsequent delivery years.
14        "New photovoltaic projects" means photovoltaic
15    renewable energy facilities that are energized after June
16    1, 2017.
17        (Q) Beginning with the 2019 update to the long-term
18    renewable resources procurement plan required by this
19    subsection (c), the Agency shall evaluate the budget
20    necessary to fund:
21            (i) purchases of renewable energy credits under
22        existing contractual obligations;
23            (ii) the Illinois Solar for All Program, related
24        grassroots education and expansion goals under Section
25        1-56(b)(2-8) of the Illinois Power Agency Act;
26            (iii) purchases of renewable energy credits

 

 

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1        necessary to comply with the new wind and new
2        photovoltaic project requirements described in items
3        (i) through (iii) of subparagraph (C) of this paragraph
4        (1); and
5            (iv) purchases of renewable energy credits
6        necessary to comply with the new wind project and new
7        photovoltaic project procurement requirements
8        described in subparagraph (P) of this paragraph (1).
9        Following the delivery year 2021, the Agency shall
10    review the budget necessary to fund items (i) through (iv)
11    of this subparagraph (Q) to determine if that budget
12    exceeds the limitation on the amount of renewable energy
13    resources procured in subparagraph (E) of this paragraph
14    (1) when combined with savings achieved by the carbon-free
15    resources procured in subsection (k) of this Section. If
16    so, the Agency shall propose an alternative limitation
17    which the Commission shall review and approve if the
18    Commission finds an alternative limitation is necessary to
19    achieve the requirements of items (i) through (iv) of this
20    subparagraph (Q). The Commission shall find an alternative
21    limitation necessary only if it determines it is a
22    cost-effective way to achieve the goals of subsection (c)
23    and paragraphs (2) through (8) of subsection (b) and as
24    part of the review of the Agency's procurement plan for the
25    delivery year following the year in which the Agency
26    concludes an alternative limitation is necessary as

 

 

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1    described by the procurement process contained in Section
2    16-111.5 of the Public Utilities Act.
3        (1.5) No later than May 31, 2021, all Illinois electric
4    cooperatives and municipal utilities shall develop a plan
5    to ensure that their members and customers have access to
6    renewable energy on a reasonably equivalent basis to all
7    other residents in the State, including the overall
8    percentage goals listed in subparagraph (A) of paragraph
9    (1) of this Section and the carbon-free resources goals of
10    subsection (k) of this Section 1-75. These plans shall be
11    developed through a public process involving municipal
12    utility and cooperative members, customers, and other
13    members of the public, and shall be filed with the Illinois
14    Commerce Commission at least every 2 years.
15        (2) (Blank).
16        (3) (Blank).
17        (4) The electric utility shall retire all renewable
18    energy credits used to comply with the standard.
19        (5) Beginning with the 2010 delivery year and ending
20    June 1, 2017, an electric utility subject to this
21    subsection (c) shall apply the lesser of the maximum
22    alternative compliance payment rate or the most recent
23    estimated alternative compliance payment rate for its
24    service territory for the corresponding compliance period,
25    established pursuant to subsection (d) of Section 16-115D
26    of the Public Utilities Act to its retail customers that

 

 

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

 

 

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1    of Section 16-108 of the Public Utilities Act.
2        (7) Renewable energy credits procured from new
3    photovoltaic projects or new distributed renewable energy
4    generation devices under this Section after June 1, 2017
5    (the effective date of Public Act 99-906) must be procured
6    from devices installed by a qualified person in compliance
7    with the requirements of Section 16-128A of the Public
8    Utilities Act and any rules or regulations adopted
9    thereunder.
10        In meeting the renewable energy requirements of this
11    subsection (c), to the extent feasible and consistent with
12    State and federal law, the renewable energy credit
13    procurements, Adjustable Block solar program, and
14    community renewable generation program shall provide
15    employment opportunities for all segments of the
16    population and workforce, including minority-owned and
17    female-owned business enterprises, and shall not,
18    consistent with State and federal law, discriminate based
19    on race or socioeconomic status. Specifically, as the
20    Agency conducts competitive procurement processes and
21    implements programs to procure renewable energy credits
22    identified in the long-term renewable resources
23    procurement plan, the Agency must preference the
24    procurement of renewable energy credits from those
25    Approved Vendors and companies that meet multiple Equity
26    Actions, including, but not limited to, the following:

 

 

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1            (A) Hiring Equity Action: 30% of the company's
2        workforce (measured by FTEs) are people of color
3        (members of a racial or ethnic minority group) and
4        receive at or above the prevailing wage.
5            (B) Clean Jobs Workforce Hubs Action: 30% of the
6        workers associated with the project are graduates or
7        trainees from the Clean Jobs Workforce Hubs programs,
8        or equivalent certification, and paid at or above the
9        prevailing wage.
10            (C) Disadvantaged Business Enterprise Action:
11        being an entity defined under Section 2 of the Business
12        Enterprise for Minorities, Women, and Persons with
13        Disabilities Act.
14            (D) Contracting Equity Action: 51% of the
15        company's subcontractors or vendors are entities
16        defined under Section 2 of the Business Enterprise for
17        Minorities, Women, and Persons with Disabilities Act
18        or 30% of the workers associated with the project,
19        including from all subcontractors and vendors, are
20        people of color (members of a racial or ethnic minority
21        group).
22            (E) Community Benefits Action: (i) for projects
23        100kW in size or larger, project has an executed
24        Community Benefits Agreement that could include, but
25        is not limited to, a commitment to hire local workers,
26        union workers, displaced fossil fuel workers

 

 

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1        transitioning to clean energy work, or Clean Jobs
2        Workforce Hubs graduates, a commitment to pay workers
3        at or above the prevailing wage, and a commitment to
4        give communities ownership opportunities in clean
5        energy projects; and (ii) for projects under 100kW in
6        size, companies pay their workforce at or above the
7        prevailing wage.
8            (F) Small Business Action: company's workforce is
9        comprised of 3 or fewer full-time employees.
10    (d) Clean coal portfolio standard.
11        (1) The procurement plans shall include electricity
12    generated using clean coal. Each utility shall enter into
13    one or more sourcing agreements with the initial clean coal
14    facility, as provided in paragraph (3) of this subsection
15    (d), covering electricity generated by the initial clean
16    coal facility representing at least 5% of each utility's
17    total supply to serve the load of eligible retail customers
18    in 2015 and each year thereafter, as described in paragraph
19    (3) of this subsection (d), subject to the limits specified
20    in paragraph (2) of this subsection (d). It is the goal of
21    the State that by January 1, 2025, 25% of the electricity
22    used in the State shall be generated by cost-effective
23    clean coal facilities. For purposes of this subsection (d),
24    "cost-effective" means that the expenditures pursuant to
25    such sourcing agreements do not cause the limit stated in
26    paragraph (2) of this subsection (d) to be exceeded and do

 

 

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

 

 

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1    eligible retail customers in the planning year ending
2    immediately prior to the agreement's execution. For
3    purposes of this subsection (d), the amount paid per
4    kilowatthour means the total amount paid for electric
5    service expressed on a per kilowatthour basis. For purposes
6    of this subsection (d), the total amount paid for electric
7    service includes without limitation amounts paid for
8    supply, transmission, distribution, surcharges and add-on
9    taxes.
10        Notwithstanding the requirements of this subsection
11    (d), the total amount paid under sourcing agreements with
12    clean coal facilities pursuant to the procurement plan for
13    any given year shall be reduced by an amount necessary to
14    limit the annual estimated average net increase due to the
15    costs of these resources included in the amounts paid by
16    eligible retail customers in connection with electric
17    service to:
18            (A) in 2010, no more than 0.5% of the amount paid
19        per kilowatthour by those customers during the year
20        ending May 31, 2009;
21            (B) in 2011, the greater of an additional 0.5% of
22        the amount paid per kilowatthour by those customers
23        during the year ending May 31, 2010 or 1% of the amount
24        paid per kilowatthour by those customers during the
25        year ending May 31, 2009;
26            (C) in 2012, 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, 2011 or 1.5% of the
3        amount paid per kilowatthour by those customers during
4        the year ending May 31, 2009;
5            (D) in 2013, the greater of an additional 0.5% of
6        the amount paid per kilowatthour by those customers
7        during the year ending May 31, 2012 or 2% of the amount
8        paid per kilowatthour by those customers during the
9        year ending May 31, 2009; and
10            (E) thereafter, the total amount paid under
11        sourcing agreements with clean coal facilities
12        pursuant to the procurement plan for any single year
13        shall be reduced by an amount necessary to limit the
14        estimated average net increase due to the cost of these
15        resources included in the amounts paid by eligible
16        retail customers in connection with electric service
17        to no more than the greater of (i) 2.015% of the amount
18        paid per kilowatthour by those customers during the
19        year ending May 31, 2009 or (ii) the incremental amount
20        per kilowatthour paid for these resources in 2013.
21        These requirements may be altered only as provided by
22        statute.
23        No later than June 30, 2015, the Commission shall
24    review the limitation on the total amount paid under
25    sourcing agreements, if any, with clean coal facilities
26    pursuant to this subsection (d) and report to the General

 

 

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1    Assembly its findings as to whether that limitation unduly
2    constrains the amount of electricity generated by
3    cost-effective clean coal facilities that is covered by
4    sourcing agreements.
5        (3) Initial clean coal facility. In order to promote
6    development of clean coal facilities in Illinois, each
7    electric utility subject to this Section shall execute a
8    sourcing agreement to source electricity from a proposed
9    clean coal facility in Illinois (the "initial clean coal
10    facility") that will have a nameplate capacity of at least
11    500 MW when commercial operation commences, that has a
12    final Clean Air Act permit on June 1, 2009 (the effective
13    date of Public Act 95-1027), and that will meet the
14    definition of clean coal facility in Section 1-10 of this
15    Act when commercial operation commences. The sourcing
16    agreements with this initial clean coal facility shall be
17    subject to both approval of the initial clean coal facility
18    by the General Assembly and satisfaction of the
19    requirements of paragraph (4) of this subsection (d) and
20    shall be executed within 90 days after any such approval by
21    the General Assembly. The Agency and the Commission shall
22    have authority to inspect all books and records associated
23    with the initial clean coal facility during the term of
24    such a sourcing agreement. A utility's sourcing agreement
25    for electricity produced by the initial clean coal facility
26    shall include:

 

 

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1            (A) a formula contractual price (the "contract
2        price") approved pursuant to paragraph (4) of this
3        subsection (d), which shall:
4                (i) be determined using a cost of service
5            methodology employing either a level or deferred
6            capital recovery component, based on a capital
7            structure consisting of 45% equity and 55% debt,
8            and a return on equity as may be approved by the
9            Federal Energy Regulatory Commission, which in any
10            case may not exceed the lower of 11.5% or the rate
11            of return approved by the General Assembly
12            pursuant to paragraph (4) of this subsection (d);
13            and
14                (ii) provide that all miscellaneous net
15            revenue, including but not limited to net revenue
16            from the sale of emission allowances, if any,
17            substitute natural gas, if any, grants or other
18            support provided by the State of Illinois or the
19            United States Government, firm transmission
20            rights, if any, by-products produced by the
21            facility, energy or capacity derived from the
22            facility and not covered by a sourcing agreement
23            pursuant to paragraph (3) of this subsection (d) or
24            item (5) of subsection (d) of Section 16-115 of the
25            Public Utilities Act, whether generated from the
26            synthesis gas derived from coal, from SNG, or from

 

 

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

 

 

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

 

 

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1            that are subject to the requirements of this
2            subsection (d) and paragraph (5) of subsection (d)
3            of Section 16-115 of the Public Utilities Act,
4            provided that the amount paid by the utility in any
5            year will be limited by paragraph (2) of this
6            subsection (d);
7                (ii) provide that the utility's payment
8            obligation in respect of the quantity of
9            electricity determined pursuant to the preceding
10            clause (i) shall be limited to an amount equal to
11            (1) the difference between the contract price
12            determined pursuant to subparagraph (A) of
13            paragraph (3) of this subsection (d) and the
14            day-ahead price for electricity delivered to the
15            regional transmission organization market of the
16            utility that is party to such sourcing agreement
17            (or any successor delivery point at which such
18            utility's supply obligations are financially
19            settled on an hourly basis) (the "reference
20            price") on the day preceding the day on which the
21            electricity is delivered to the initial clean coal
22            facility busbar, multiplied by (2) the quantity of
23            electricity determined pursuant to the preceding
24            clause (i); and
25                (iii) not require the utility to take physical
26            delivery of the electricity produced by the

 

 

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1            facility;
2            (D) general provisions, which shall:
3                (i) specify a term of no more than 30 years,
4            commencing on the commercial operation date of the
5            facility;
6                (ii) provide that utilities shall maintain
7            adequate records documenting purchases under the
8            sourcing agreements entered into to comply with
9            this subsection (d) and shall file an accounting
10            with the load forecast that must be filed with the
11            Agency by July 15 of each year, in accordance with
12            subsection (d) of Section 16-111.5 of the Public
13            Utilities Act;
14                (iii) provide that all costs associated with
15            the initial clean coal facility will be
16            periodically reported to the Federal Energy
17            Regulatory Commission and to purchasers in
18            accordance with applicable laws governing
19            cost-based wholesale power contracts;
20                (iv) permit the Illinois Power Agency to
21            assume ownership of the initial clean coal
22            facility, without monetary consideration and
23            otherwise on reasonable terms acceptable to the
24            Agency, if the Agency so requests no less than 3
25            years prior to the end of the stated contract term;
26                (v) require the owner of the initial clean coal

 

 

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

 

 

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1            this purpose and any carbon emission credits
2            associated with sequestration of carbon from the
3            facility must be permanently retired. The initial
4            clean coal facility shall not forfeit its
5            designation as a clean coal facility if the
6            facility fails to fully comply with the applicable
7            carbon sequestration requirements in any given
8            year, provided the requisite offsets are
9            purchased. However, the Attorney General, on
10            behalf of the People of the State of Illinois, may
11            specifically enforce the facility's sequestration
12            requirement and the other terms of this contract
13            provision. Compliance with the sequestration
14            requirements and offset purchase requirements
15            specified in paragraph (3) of this subsection (d)
16            shall be reviewed annually by an independent
17            expert retained by the owner of the initial clean
18            coal facility, with the advance written approval
19            of the Attorney General. The Commission may, in the
20            course of the review specified in item (vii),
21            reduce the allowable return on equity for the
22            facility if the facility willfully fails to comply
23            with the carbon capture and sequestration
24            requirements set forth in this item (v);
25                (vi) include limits on, and accordingly
26            provide for modification of, the amount the

 

 

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

 

 

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1            electric supplier's obligation to incur any
2            liability until such time as the facility is in
3            commercial operation and generating power and
4            energy and such power and energy is being delivered
5            to the facility busbar;
6                (x) provide that the owner or owners of the
7            initial clean coal facility, which is the
8            counterparty to such sourcing agreement, shall
9            have the right from time to time to elect whether
10            the obligations of the utility party thereto shall
11            be governed by the power purchase provisions or the
12            contract for differences provisions;
13                (xi) append documentation showing that the
14            formula rate and contract, insofar as they relate
15            to the power purchase provisions, have been
16            approved by the Federal Energy Regulatory
17            Commission pursuant to Section 205 of the Federal
18            Power Act;
19                (xii) provide that any changes to the terms of
20            the contract, insofar as such changes relate to the
21            power purchase provisions, are subject to review
22            under the public interest standard applied by the
23            Federal Energy Regulatory Commission pursuant to
24            Sections 205 and 206 of the Federal Power Act; and
25                (xiii) conform with customary lender
26            requirements in power purchase agreements used as

 

 

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

 

 

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

 

 

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1            (iv) Commission review. If the General Assembly
2        enacts authorizing legislation pursuant to
3        subparagraph (iii) approving a sourcing agreement, the
4        Commission shall, within 90 days of such enactment,
5        complete a review of such sourcing agreement. During
6        such time period, the Commission shall implement any
7        directive of the General Assembly, resolve any
8        disputes between the parties to the sourcing agreement
9        concerning the terms of such agreement, approve the
10        form of such agreement, and issue an order finding that
11        the sourcing agreement is prudent and reasonable.
12        The facility cost report shall be prepared as follows:
13            (A) The facility cost report shall be prepared by
14        duly licensed engineering and construction firms
15        detailing the estimated capital costs payable to one or
16        more contractors or suppliers for the engineering,
17        procurement and construction of the components
18        comprising the initial clean coal facility and the
19        estimated costs of operation and maintenance of the
20        facility. The facility cost report shall include:
21                (i) an estimate of the capital cost of the core
22            plant based on one or more front end engineering
23            and design studies for the gasification island and
24            related facilities. The core plant shall include
25            all civil, structural, mechanical, electrical,
26            control, and safety systems.

 

 

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

 

 

10100HB3624ham001- 133 -LRB101 09870 JLS 56878 a

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

 

 

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

 

 

10100HB3624ham001- 135 -LRB101 09870 JLS 56878 a

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

 

 

10100HB3624ham001- 136 -LRB101 09870 JLS 56878 a

1    utility to retail customers in the State during calendar
2    year 2014. For an electric utility serving fewer than
3    100,000 retail customers in this State that requested,
4    under Section 16-111.5 of the Public Utilities Act, that
5    the Agency procure power and energy for all or a portion of
6    the utility's Illinois load for the delivery year
7    commencing June 1, 2016, the Agency shall procure contracts
8    with zero emission facilities that are reasonably capable
9    of generating cost-effective zero emission credits in an
10    amount approximately equal to 16% of the portion of power
11    and energy to be procured by the Agency for the utility.
12    The duration of the contracts procured under this
13    subsection (d-5) shall be for a term of 10 years ending May
14    31, 2027. The quantity of zero emission credits to be
15    procured under the contracts shall be all of the zero
16    emission credits generated by the zero emission facility in
17    each delivery year; however, if the zero emission facility
18    is owned by more than one entity, then the quantity of zero
19    emission credits to be procured under the contracts shall
20    be the amount of zero emission credits that are generated
21    from the portion of the zero emission facility that is
22    owned by the winning supplier.
23        The 16% value identified in this paragraph (1) is the
24    average of the percentage targets in subparagraph (B) of
25    paragraph (1) of subsection (c) of this Section 1-75 of
26    this Act for the 5 delivery years beginning June 1, 2017.

 

 

10100HB3624ham001- 137 -LRB101 09870 JLS 56878 a

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

 

 

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

 

 

10100HB3624ham001- 139 -LRB101 09870 JLS 56878 a

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

 

 

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1            period ending May 31, 2016 is $31.40 per
2            megawatthour, which is based on the sum of (aa) the
3            average day-ahead energy price across all hours of
4            such 12-month period at the PJM Interconnection
5            LLC Northern Illinois Hub, (bb) 50% multiplied by
6            the Base Residual Auction, or its successor,
7            capacity price for the rest of the RTO zone group
8            determined by PJM Interconnection LLC, divided by
9            24 hours per day, and (cc) 50% multiplied by the
10            Planning Resource Auction, or its successor,
11            capacity price for Zone 4 determined by the
12            Midcontinent Independent System Operator, Inc.,
13            divided by 24 hours per day.
14                (iii) Market price index: The market price
15            index for a delivery year shall be the sum of
16            projected energy prices and projected capacity
17            prices determined as follows:
18                    (aa) Projected energy prices: the
19                projected energy prices for the applicable
20                delivery year shall be calculated once for the
21                year using the forward market price for the PJM
22                Interconnection, LLC Northern Illinois Hub.
23                The forward market price shall be calculated as
24                follows: the energy forward prices for each
25                month of the applicable delivery year averaged
26                for each trade date during the calendar year

 

 

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

 

 

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

 

 

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1        minimizing carbon dioxide emissions that result from
2        electricity consumed in Illinois and minimizing sulfur
3        dioxide, nitrogen oxide, and particulate matter
4        emissions that adversely affect the citizens of this
5        State. In particular, the selection of winning bids
6        shall take into account the incremental environmental
7        benefits resulting from the procurement, such as any
8        existing environmental benefits that are preserved by
9        the procurements held under Public Act 99-906 and would
10        cease to exist if the procurements were not held,
11        including the preservation of zero emission
12        facilities. The plan shall also describe in detail how
13        each public interest factor shall be considered and
14        weighted in the bid selection process to ensure that
15        the public interest criteria are applied to the
16        procurement and given full effect.
17            For purposes of developing the plan, the Agency
18        shall consider any reports issued by a State agency,
19        board, or commission under House Resolution 1146 of the
20        98th General Assembly and paragraph (4) of subsection
21        (d) of this Section 1-75 of this Act, as well as
22        publicly available analyses and studies performed by
23        or for regional transmission organizations that serve
24        the State and their independent market monitors.
25            Upon publishing of the zero emission standard
26        procurement plan, copies of the plan shall be posted

 

 

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

 

 

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

 

 

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1                in the August 2016 Technical Update using a 3%
2                discount rate, adjusted for inflation for each
3                delivery year; and
4                    (bb) the costs of replacement with other
5                zero carbon dioxide resources, including wind
6                and photovoltaic, based upon the simple
7                average of the following:
8                        (I) the price, or if there is more than
9                    one price, the average of the prices, paid
10                    for renewable energy credits from new
11                    utility-scale wind projects in the
12                    procurement events specified in item (i)
13                    of subparagraph (G) of paragraph (1) of
14                    subsection (c) of this Section 1-75 of this
15                    Act; and
16                        (II) the price, or if there is more
17                    than one price, the average of the prices,
18                    paid for renewable energy credits from new
19                    utility-scale solar projects and
20                    brownfield site photovoltaic projects in
21                    the procurement events specified in item
22                    (ii) of subparagraph (G) of paragraph (1)
23                    of subsection (c) of this Section 1-75 of
24                    this Act and, after January 1, 2015,
25                    renewable energy credits from photovoltaic
26                    distributed generation projects in

 

 

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1                    procurement events held under subsection
2                    (c) of this Section 1-75 of this Act.
3            Each utility shall enter into binding contractual
4        arrangements with the winning suppliers.
5            The procurement described in this subsection
6        (d-5), including, but not limited to, the execution of
7        all contracts procured, shall be completed no later
8        than May 10, 2017. Based on the effective date of
9        Public Act 99-906, the Agency and Commission may, as
10        appropriate, modify the various dates and timelines
11        under this subparagraph and subparagraphs (C) and (D)
12        of this paragraph (1). The procurement and plan
13        approval processes required by this subsection (d-5)
14        shall be conducted in conjunction with the procurement
15        and plan approval processes required by subsection (c)
16        of this Section and Section 16-111.5 of the Public
17        Utilities Act, to the extent practicable.
18        Notwithstanding whether a procurement event is
19        conducted under Section 16-111.5 of the Public
20        Utilities Act, the Agency shall immediately initiate a
21        procurement process on June 1, 2017 (the effective date
22        of Public Act 99-906).
23            (D) Following the procurement event described in
24        this paragraph (1) and consistent with subparagraph
25        (B) of this paragraph (1), the Agency shall calculate
26        the payments to be made under each contract for the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10100HB3624ham001- 154 -LRB101 09870 JLS 56878 a

1        (4) Cost-effective zero emission credits procured from
2    zero emission facilities shall satisfy the applicable
3    definitions set forth in Section 1-10 of this Act.
4        (5) The electric utility shall retire all zero emission
5    credits used to comply with the requirements of this
6    subsection (d-5).
7        (6) Electric utilities shall be entitled to recover all
8    of the costs associated with the procurement of zero
9    emission credits through an automatic adjustment clause
10    tariff in accordance with subsection (k) and (m) of Section
11    16-108 of the Public Utilities Act, and the contracts
12    executed under this subsection (d-5) shall provide that the
13    utilities' payment obligations under such contracts shall
14    be reduced if an adjustment is required under subsection
15    (m) of Section 16-108 of the Public Utilities Act.
16        (7) This subsection (d-5) shall become inoperative on
17    January 1, 2028.
18    (e) The draft procurement plans are subject to public
19comment, as required by Section 16-111.5 of the Public
20Utilities Act.
21    (f) The Agency shall submit the final procurement plan to
22the Commission. The Agency shall revise a procurement plan if
23the Commission determines that it does not meet the standards
24set forth in Section 16-111.5 of the Public Utilities Act.
25    (g) The Agency shall assess fees to each affected utility
26to recover the costs incurred in preparation of the annual

 

 

10100HB3624ham001- 155 -LRB101 09870 JLS 56878 a

1procurement plan for the utility.
2    (h) The Agency shall assess fees to each bidder to recover
3the costs incurred in connection with a competitive procurement
4process.
5    (i) A renewable energy credit, carbon emission credit, or
6zero emission credit can only be used once to comply with a
7single portfolio or other standard as set forth in subsection
8(c), subsection (d), or subsection (d-5) of this Section,
9respectively. A renewable energy credit, carbon emission
10credit, or zero emission credit cannot be used to satisfy the
11requirements of more than one standard. If more than one type
12of credit is issued for the same megawatt hour of energy, only
13one credit can be used to satisfy the requirements of a single
14standard. After such use, the credit must be retired together
15with any other credits issued for the same megawatt hour of
16energy.
17    (j) Bundled procurement.
18        (1) Beginning with the energy, capacity and renewable
19    energy credits to be delivered in the delivery year
20    commencing on June 1, 2021, the Agency shall procure
21    cost-effective, long-term bundled contracts for energy
22    supply, renewable energy credits from new renewable energy
23    projects as defined in subparagraph (P) of subsection (c)
24    of this Section, and, subject to the requirements of
25    subsection (k) of this Section, capacity, in accordance
26    with the requirements of Section 16-111.5 of the Public

 

 

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1    Utilities Act for the eligible retail customers of electric
2    utilities that on December 31, 2005 provided electric
3    service to at least 100,000 customers in Illinois. At a
4    minimum, energy supply procured by the Agency through new
5    long-term bundled contracts shall be:
6            (A) 3,000,000 megawatt-hours and associated
7        renewable energy credits and, subject to the
8        requirements of subsection (k) of this Section,
9        capacity from new wind and solar projects for the
10        delivery year beginning June 1, 2021.
11            (B) 6,000,000 megawatt-hours and associated
12        renewable energy credits and, subject to the
13        requirements of subsection (k) of this Section,
14        capacity from new wind and solar projects for the
15        delivery year beginning June 1, 2022.
16            (C) 9,000,000 megawatt-hours and associated
17        renewable energy credits and, subject to the
18        requirements of subsection (k) of this Section,
19        capacity from new wind and solar projects for the
20        delivery year beginning June 1, 2023.
21            (D) 12,000,000 megawatt-hours and associated
22        renewable energy credits and, subject to the
23        requirements of subsection (k) of this Section,
24        capacity from new wind and solar projects for the
25        delivery year beginning June 1, 2024.
26            (E) 15,000,000 megawatt-hours and associated

 

 

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1        renewable energy credits and, subject to the
2        requirements of subsection (k) of this Section,
3        capacity from new wind and solar projects for the
4        delivery year beginning June 1, 2025.
5            (F) 18,000,000 megawatt-hours and associated
6        renewable energy credits and, subject to the
7        requirements of subsection (k) of this Section,
8        capacity from new wind and solar projects for the
9        delivery year beginning June 1, 2026.
10            (G) 21,000,000 megawatt-hours and associated
11        renewable energy credits and, subject to the
12        requirements of subsection (k) of this Section,
13        capacity from new wind and solar projects for the
14        delivery year beginning June 1, 2027.
15            (H) 24,000,000 megawatt-hours and associated
16        renewable energy credits and, subject to the
17        requirements of subsection (k) of this Section,
18        capacity from new wind and solar projects for the
19        delivery year beginning June 1, 2028 and thereafter.
20        (2) Long-term bundled contracts as described in this
21    subsection shall refer to contracts that contain no less
22    than a 15-year period.
23        (3) Long-term bundled contracts shall only be awarded
24    for new renewable energy projects as defined in
25    subparagraphs (C) and (P) of subsection (c) of this
26    Section. Nothing in this Section is intended to preclude

 

 

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1    distributed generation from participating.
2        (4) Long-term bundled contracts as described in this
3    subsection may include procurements that include energy
4    supply plus renewable energy credits, procurements that
5    include capacity, subject to the requirements of
6    subsection (k) of this Section, plus renewable energy
7    credits, or procurements that include energy supply plus
8    capacity plus renewable energy credits.
9        (5) Long-term bundled contracts as described in this
10    subsection shall be procured in a procurement event prior
11    to the scheduled Reliability Pricing Model Auctions of the
12    PJM Interconnection LLC and the Planning Resource Actions
13    of the Midcontinent Independent System Operator.
14    (k) Carbon-free resources.
15        (1) Carbon-free capacity. Beginning with the
16    procurement for the delivery year commencing June 1, 2022,
17    if possible, but no later than for the delivery year
18    commencing June 1, 2023, the Agency shall develop a plan
19    and conduct a procurement of capacity from qualified
20    resources as part of its procurement plan described in
21    Section 16-111.5 of the Public Utilities Act with the goals
22    of reducing pollution from the power sector, lowering
23    consumer costs, and creating investment opportunities for
24    new renewable resources. For the purposes of this
25    subsection, "qualified resources" means (A) energy
26    efficiency measures that are implemented pursuant to plans

 

 

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1    approved by the Commission under Sections 8-103, 8-103B,
2    and 8-104 of the Public Utilities Act; (B) renewable energy
3    resources; (C) zero emission facilities; and (D) resources
4    as part of a clean peak program under subsection (l) of
5    this Section, subject to the requirements in the open
6    access tariff and manuals of PJM Interconnection and
7    approved by the Federal Energy Regulatory Commission. The
8    capacity portion of qualified resources shall be counted
9    toward fulfillment of capacity obligations within the
10    local delivery area of an electric utility serving more
11    than 3,000,000 retail customers that is a member of PJM
12    Interconnection LLC, as defined in the open access tariff
13    and manuals of PJM Interconnection and approved by the
14    Federal Energy Regulatory Commission, as applicable. The
15    Agency shall calculate the eligible capacity contribution
16    of qualified resources procured, and match it to an
17    equivalent megawatt quantity or portion of capacity
18    obligation of load within the local delivery zone. The
19    resulting capacity and load obligation shall be reported in
20    accordance with the applicable provisions of the Open
21    Access Transmission Tariff and manuals of PJM
22    Interconnection LLC.
23        (2) Carbon-free supply. Beginning with the delivery
24    year commencing June 1, 2021, the Agency shall ensure its
25    procurement of energy supply, in accordance with the
26    requirements of Section 16-111.5 of the Public Utilities

 

 

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1    Act for the eligible retail customers of electric utilities
2    that on December 31, 2005 provided electric service to at
3    least 100,000 customers in Illinois, achieves a
4    progressive annual ramp down to an emission rate of zero
5    pounds of carbon dioxide emissions per megawatt-hour by May
6    31, 2030. At a minimum, energy supply procured by the
7    Agency through new long-term bundled contracts shall be:
8            (A) 1,000 pounds per megawatt-hour of carbon
9        dioxide emissions per megawatt-hour for the delivery
10        year beginning June 1, 2021.
11            (B) 500 pounds per megawatt-hour of carbon dioxide
12        emissions per megawatt-hour for the delivery year
13        beginning June 1, 2026.
14            (C) zero pounds per megawatt-hour of carbon
15        dioxide emissions per megawatt-hour for the delivery
16        year beginning June 1, 2030 and thereafter.
17    (l) Clean Peak Program.
18        (1) In this subsection:
19        "Energy storage response threshold level" means a
20    level, in megawatts, for the designated locational
21    delivery area system-wide demand at which energy storage
22    resources must begin providing demand reduction at its
23    committed level. The energy storage response threshold
24    level shall be set by the Agency to coincide with the top
25    100 hours of demand in the designated zone, accounting for
26    seasonal variability in capacity needs and any capacity

 

 

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1    performance requirements included in the Open Access
2    Transmission Tariff and manuals of PJM Interconnection,
3    LLC.
4        "Demand response threshold level" means a level, in
5    megawatts, of the locational delivery area system-wide
6    demand at which demand response resources must begin
7    providing demand reduction at its committed demand
8    response threshold level. The demand response threshold
9    level shall be set by the Agency to coincide with the top
10    100 hours of demand in the designated zone, accounting for
11    seasonal variability in capacity needs and any capacity
12    performance requirements included in the Open Access
13    Transmission Tariff and manuals of PJM Interconnection
14    LLC.
15        (2) The Agency shall develop a Clean Peak Program plan
16    that shall include programs and competitive procurement
17    events necessary to meet the goals set forth in this
18    subsection (l). Within 90 days after the effective date of
19    this amendatory Act of the 101st General Assembly, the
20    Agency shall release for comment an initial Clean Peak
21    Program plan. The Clean Peak Program plan shall be subject
22    to review and approval by the Commission under Section
23    16-111.5 of the Public Utilities Act. The Agency shall
24    review and update on an annual basis a Clean Peak Program
25    plan which shall be reviewed and approved by the Commission
26    in conjunction with the procurement plan under Section

 

 

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1    16-111.5 of the Public Utilities Act to the extent
2    practicable to minimize administrative expense.
3        (3) The Clean Peak Program shall include progressive
4    annual goals and efforts to achieve a 15% reduction in the
5    Capacity and Network Service Peak Load Contributions in the
6    Commission zone, as determined by PJM Interconnection LLC
7    in its Open Access Transmission Tariff, by the beginning of
8    the delivery year commencing June 1, 2023, and each year
9    thereafter, based on the measured Capacity and Network
10    Service Peak Load Contribution of the designated zone for
11    the delivery year commencing June 1, 2017.
12        (4) The Clean Peak Program shall consist of the
13    following elements:
14            (A) Energy storage resources that commit to
15        achieve a reduction in electricity demand in the
16        designated zone, in megawatts based on seasonal
17        capability, when the electricity demand of the
18        designated zone reaches an energy storage response
19        threshold level, in megawatts.
20            (B) Energy storage resources, co-located with and
21        that are energized primarily from wind and solar
22        projects, that commit to achieve a reduction in
23        electricity demand in the designated zone, in
24        megawatts based on seasonal capability, when the
25        electricity demand of the designated zone reaches an
26        energy storage response threshold level, in megawatts.

 

 

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1            (C) Demand response resources, not including
2        generators powered by diesel fuel or natural gas, that
3        commit to achieve a reduction in electricity demand in
4        the designated zone, in megawatts based on seasonal
5        capability, when the electricity demand of the
6        designated zone reaches a demand response threshold
7        level, in megawatts.
8            (D) Utility-run demand-response programs,
9        price-responsive demand programs, time-of-use, and
10        hourly rate programs, beneficial electrification
11        programs as described in Section 16-107.8 of the Public
12        Utilities Act, any capacity value developed by the
13        Illinois Commerce Commission as part of the
14        distributed generation rebate described in Section
15        16-106.7 of the Public Utilities Act, or as otherwise
16        provided for by the Commission.
17            (E) Demand response and energy efficiency
18        resources as defined by the Open Access Transmission
19        Tariff and manuals of PJM Interconnection LLC.
20        (5) To the extent practical, the Agency shall procure
21    resources identified in subparagraphs (A) through (C) in
22    paragraph (4) as part of the Carbon-Free Capacity
23    Procurement described in paragraph (1) of subsection (k).
24        (6) The Agency shall calculate the eligible capacity
25    contribution of the items in paragraph (4) of this
26    subsection (l) as part of any resource-specific carve-out

 

 

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1    in the Open Access Transmission Tariff and manuals of PJM
2    Interconnection LLC.
3        (7) As part of its annual plan, the Agency shall
4    solicit comment on new ways and methods for achieving
5    cost-effective demand reductions to meet the goals of this
6    subsection and, upon review, include new program proposals
7    in its annual plan for review and approval by the
8    Commission.
9(Source: P.A. 99-536, eff. 7-8-16; 99-906, eff. 6-1-17;
10100-863, eff. 8-14-18; revised 10-18-18.)
 
11    Section 90-15. The School Code is amended by adding Section
122-3.176 as follows:
 
13    (105 ILCS 5/2-3.176 new)
14    Sec. 2-3.176. Clean jobs curriculum.
15    (a) The General Assembly recognizes that clean energy is a
16growing and important sector of the State's economy and that
17significant job opportunity exists in the sector. Consistent
18with Section 5-30 of the Clean Jobs Workforce Hubs Act, the
19Board shall participate in the development of the clean jobs
20curriculum convened by the Department of Commerce and Economic
21Opportunity. The Board shall identify and collaboratively with
22stakeholders identified by the Board develop curriculum based
23on anticipated clean energy job availability and growth. Clean
24energy jobs considered shall include, but are not limited to,

 

 

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1solar photovoltaic, solar thermal, wind energy, energy
2efficiency, site assessment, sales, and back office.
3    (b) In the development of the clean jobs curriculum, the
4Board shall consider broad occupational training applicable to
5the general construction sector as well as sector-specific
6skills.
7    (c) Consideration should be given to skills applicable to
8trainees for whom secondary and higher education has not been
9available.
 
10    Section 90-20. The Public Utilities Act is amended by
11changing Sections 8-103B, 9-220.3, 16-107, 16-107.5, 16-107.6,
1216-111.5, and 16-128B and by adding Sections 8-104.1, 16-107.7,
1316-107.8, 16-108.9, 16-108.13, 16-108.17, and 16-115E as
14follows:
 
15    (220 ILCS 5/8-103B)
16    Sec. 8-103B. Energy efficiency and demand-response
17measures.
18    (a) It is the policy of the State that electric utilities
19are required to use cost-effective energy efficiency and
20demand-response measures to reduce delivery load. Requiring
21investment in cost-effective energy efficiency and
22demand-response measures will reduce direct and indirect costs
23to consumers by decreasing environmental impacts and by
24avoiding or delaying the need for new generation, transmission,

 

 

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1and distribution infrastructure. It serves the public interest
2to allow electric utilities to recover costs for reasonably and
3prudently incurred expenditures for energy efficiency and
4demand-response measures. As used in this Section,
5"cost-effective" means that the measures satisfy the total
6resource cost test. The low-income measures described in
7subsection (c) of this Section shall not be required to meet
8the total resource cost test. For purposes of this Section, the
9terms "energy-efficiency", "demand-response", "electric
10utility", and "total resource cost test" have the meanings set
11forth in the Illinois Power Agency Act.
12    (a-5) This Section applies to electric utilities serving
13more than 500,000 retail customers in the State for those
14multi-year plans commencing after December 31, 2017.
15    (b) For purposes of this Section, electric utilities
16subject to this Section that serve more than 3,000,000 retail
17customers in the State shall be deemed to have achieved a
18cumulative persisting annual savings of 6.6% from energy
19efficiency measures and programs implemented during the period
20beginning January 1, 2012 and ending December 31, 2017, which
21percent is based on the deemed average weather normalized sales
22of electric power and energy during calendar years 2014, 2015,
23and 2016 of 88,000,000 MWhs. For the purposes of this
24subsection (b) and subsection (b-5), the 88,000,000 MWhs of
25deemed electric power and energy sales shall be reduced by the
26number of MWhs equal to the sum of the annual consumption of

 

 

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1customers that are exempt from subsections (a) through (j) of
2this Section under subsection (l) of this Section, as averaged
3across the calendar years 2014, 2015, and 2016. After 2017, the
4deemed value of cumulative persisting annual savings from
5energy efficiency measures and programs implemented during the
6period beginning January 1, 2012 and ending December 31, 2017,
7shall be reduced each year, as follows, and the applicable
8value shall be applied to and count toward the utility's
9achievement of the cumulative persisting annual savings goals
10set forth in subsection (b-5):
11        (1) 5.8% deemed cumulative persisting annual savings
12    for the year ending December 31, 2018;
13        (2) 5.2% deemed cumulative persisting annual savings
14    for the year ending December 31, 2019;
15        (3) 4.5% deemed cumulative persisting annual savings
16    for the year ending December 31, 2020;
17        (4) 4.0% deemed cumulative persisting annual savings
18    for the year ending December 31, 2021;
19        (5) 3.5% deemed cumulative persisting annual savings
20    for the year ending December 31, 2022;
21        (6) 3.1% deemed cumulative persisting annual savings
22    for the year ending December 31, 2023;
23        (7) 2.8% deemed cumulative persisting annual savings
24    for the year ending December 31, 2024;
25        (8) 2.5% deemed cumulative persisting annual savings
26    for the year ending December 31, 2025;

 

 

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1        (9) 2.3% deemed cumulative persisting annual savings
2    for the year ending December 31, 2026;
3        (10) 2.1% deemed cumulative persisting annual savings
4    for the year ending December 31, 2027;
5        (11) 1.8% deemed cumulative persisting annual savings
6    for the year ending December 31, 2028;
7        (12) 1.7% deemed cumulative persisting annual savings
8    for the year ending December 31, 2029; and
9        (13) 1.5% deemed cumulative persisting annual savings
10    for the year ending December 31, 2030; .
11        (14) 1.3% deemed cumulative persisting annual savings
12    for the year ending December 31, 2031;
13        (15) 1.1% deemed cumulative persisting annual savings
14    for the year ending December 31, 2032;
15        (16) 0.9% deemed cumulative persisting annual savings
16    for the year ending December 31, 2033;
17        (17) 0.7% deemed cumulative persisting annual savings
18    for the year ending December 31, 2034;
19        (18) 0.5% deemed cumulative persisting annual savings
20    for the year ending December 31, 2035;
21        (19) 0.4% deemed cumulative persisting annual savings
22    for the year ending December 31, 2036;
23        (20) 0.3% deemed cumulative persisting annual savings
24    for the year ending December 31, 2037;
25        (21) 0.2% deemed cumulative persisting annual savings
26    for the year ending December 31, 2038;

 

 

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1        (22) 0.1% deemed cumulative persisting annual savings
2    for the year ending December 31, 2039; and
3        (23) 0.0% deemed cumulative persisting annual savings
4    for the year ending December 31, 2040 and all subsequent
5    years.
6    For purposes of this Section, "cumulative persisting
7annual savings" means the total electric energy savings in a
8given year from measures installed in that year or in previous
9years, but no earlier than January 1, 2012, that are still
10operational and providing savings in that year because the
11measures have not yet reached the end of their useful lives.
12    (b-5) Beginning in 2018, electric utilities subject to this
13Section that serve more than 3,000,000 retail customers in the
14State shall achieve the following cumulative persisting annual
15savings goals, as modified by subsection (f) of this Section
16and as compared to the deemed baseline of 88,000,000 MWhs of
17electric power and energy sales set forth in subsection (b), as
18reduced by the number of MWhs equal to the sum of the annual
19consumption of customers that are exempt from subsections (a)
20through (j) of this Section under subsection (l) of this
21Section as averaged across the calendar years 2014, 2015, and
222016, through the implementation of energy efficiency measures
23during the applicable year and in prior years, but no earlier
24than January 1, 2012:
25        (1) 7.8% cumulative persisting annual savings for the
26    year ending December 31, 2018;

 

 

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1        (2) 9.1% cumulative persisting annual savings for the
2    year ending December 31, 2019;
3        (3) 10.4% cumulative persisting annual savings for the
4    year ending December 31, 2020;
5        (4) 11.8% cumulative persisting annual savings for the
6    year ending December 31, 2021;
7        (5) 13.1% cumulative persisting annual savings for the
8    year ending December 31, 2022;
9        (6) 14.4% cumulative persisting annual savings for the
10    year ending December 31, 2023;
11        (7) 15.7% cumulative persisting annual savings for the
12    year ending December 31, 2024;
13        (8) 17% cumulative persisting annual savings for the
14    year ending December 31, 2025;
15        (9) 17.9% cumulative persisting annual savings for the
16    year ending December 31, 2026;
17        (10) 18.8% cumulative persisting annual savings for
18    the year ending December 31, 2027;
19        (11) 19.7% cumulative persisting annual savings for
20    the year ending December 31, 2028;
21        (12) 20.6% cumulative persisting annual savings for
22    the year ending December 31, 2029; and
23        (13) 21.5% cumulative persisting annual savings for
24    the year ending December 31, 2030.
25    No later than December 31, 2020, the Illinois Commerce
26Commission shall establish additional cumulative persisting

 

 

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1annual savings goals for the years 2031 through 2035. The
2Commission shall also establish additional cumulative
3persisting annual savings goals every 5 years thereafter to
4ensure utilities always have goals that extend at least 11
5years into the future. The cumulative persisting annual savings
6goals beyond the year 2030 shall increase by 0.9 percentage
7points per year, absent a Commission decision to initiate a
8proceeding to consider establishing goals that increase by more
9or less than that amount. Such a proceeding must be conducted
10in accordance with the procedures described in subsection (f)
11of this Section. If such a proceeding is initiated, the
12cumulative persisting annual savings goals established by the
13Commission through that proceeding shall reflect the
14Commission's best estimate of the maximum amount of additional
15savings that are forecast to be cost-effectively achievable
16unless such best estimates would result in goals that represent
17less than 0.5 percentage point annual increases in total
18cumulative persisting annual savings. The Commission may only
19establish goals that represent less than 0.5 percentage point
20annual increases in cumulative persisting annual savings if it
21can demonstrate, based on clear and convincing evidence, that
220.5 percentage point increases are not cost-effectively
23achievable. The Commission shall inform its decision based on
24an energy efficiency potential study which conforms to the
25requirements of subsection (f-5) of this Section.
26    (b-10) For purposes of this Section, electric utilities

 

 

10100HB3624ham001- 172 -LRB101 09870 JLS 56878 a

1subject to this Section that serve less than 3,000,000 retail
2customers but more than 500,000 retail customers in the State
3shall be deemed to have achieved a cumulative persisting annual
4savings of 6.6% from energy efficiency measures and programs
5implemented during the period beginning January 1, 2012 and
6ending December 31, 2017, which is based on the deemed average
7weather normalized sales of electric power and energy during
8calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. For the
9purposes of this subsection (b-10) and subsection (b-15), the
1036,900,000 MWhs of deemed electric power and energy sales shall
11be reduced by the number of MWhs equal to the sum of the annual
12consumption of customers that are exempt from subsections (a)
13through (j) of this Section under subsection (l) of this
14Section, as averaged across the calendar years 2014, 2015, and
152016. After 2017, the deemed value of cumulative persisting
16annual savings from energy efficiency measures and programs
17implemented during the period beginning January 1, 2012 and
18ending December 31, 2017, shall be reduced each year, as
19follows, and the applicable value shall be applied to and count
20toward the utility's achievement of the cumulative persisting
21annual savings goals set forth in subsection (b-15):
22        (1) 5.8% deemed cumulative persisting annual savings
23    for the year ending December 31, 2018;
24        (2) 5.2% deemed cumulative persisting annual savings
25    for the year ending December 31, 2019;
26        (3) 4.5% deemed cumulative persisting annual savings

 

 

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1    for the year ending December 31, 2020;
2        (4) 4.0% deemed cumulative persisting annual savings
3    for the year ending December 31, 2021;
4        (5) 3.5% deemed cumulative persisting annual savings
5    for the year ending December 31, 2022;
6        (6) 3.1% deemed cumulative persisting annual savings
7    for the year ending December 31, 2023;
8        (7) 2.8% deemed cumulative persisting annual savings
9    for the year ending December 31, 2024;
10        (8) 2.5% deemed cumulative persisting annual savings
11    for the year ending December 31, 2025;
12        (9) 2.3% deemed cumulative persisting annual savings
13    for the year ending December 31, 2026;
14        (10) 2.1% deemed cumulative persisting annual savings
15    for the year ending December 31, 2027;
16        (11) 1.8% deemed cumulative persisting annual savings
17    for the year ending December 31, 2028;
18        (12) 1.7% deemed cumulative persisting annual savings
19    for the year ending December 31, 2029; and
20        (13) 1.5% deemed cumulative persisting annual savings
21    for the year ending December 31, 2030; .
22        (14) 1.3% deemed cumulative persisting annual savings
23    for the year ending December 31, 2031;
24        (15) 1.1% deemed cumulative persisting annual savings
25    for the year ending December 31, 2032;
26        (16) 0.9% deemed cumulative persisting annual savings

 

 

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1    for the year ending December 31, 2033;
2        (17) 0.7% deemed cumulative persisting annual savings
3    for the year ending December 31, 2034;
4        (18) 0.5% deemed cumulative persisting annual savings
5    for the year ending December 31, 2035;
6        (19) 0.4% deemed cumulative persisting annual savings
7    for the year ending December 31, 2036;
8        (20) 0.3% deemed cumulative persisting annual savings
9    for the year ending December 31, 2037;
10        (21) 0.2% deemed cumulative persisting annual savings
11    for the year ending December 31, 2038;
12        (22) 0.1% deemed cumulative persisting annual savings
13    for the year ending December 31, 2039; and
14        (23) 0.0% deemed cumulative persisting annual savings
15    for the year ending December 31, 2040 and all subsequent
16    years.
17    (b-15) Beginning in 2018, electric utilities subject to
18this Section that serve less than 3,000,000 retail customers
19but more than 500,000 retail customers in the State shall
20achieve the following cumulative persisting annual savings
21goals, as modified by subsection (b-20) and subsection (f) of
22this Section and as compared to the deemed baseline as reduced
23by the number of MWhs equal to the sum of the annual
24consumption of customers that are exempt from subsections (a)
25through (j) of this Section under subsection (l) of this
26Section as averaged across the calendar years 2014, 2015, and

 

 

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12016, through the implementation of energy efficiency measures
2during the applicable year and in prior years, but no earlier
3than January 1, 2012:
4        (1) 7.4% cumulative persisting annual savings for the
5    year ending December 31, 2018;
6        (2) 8.2% cumulative persisting annual savings for the
7    year ending December 31, 2019;
8        (3) 9.0% cumulative persisting annual savings for the
9    year ending December 31, 2020;
10        (4) 9.8% cumulative persisting annual savings for the
11    year ending December 31, 2021;
12        (5) 10.6% cumulative persisting annual savings for the
13    year ending December 31, 2022;
14        (6) 11.4% cumulative persisting annual savings for the
15    year ending December 31, 2023;
16        (7) 12.2% cumulative persisting annual savings for the
17    year ending December 31, 2024;
18        (8) 13% cumulative persisting annual savings for the
19    year ending December 31, 2025;
20        (9) 13.6% cumulative persisting annual savings for the
21    year ending December 31, 2026;
22        (10) 14.2% cumulative persisting annual savings for
23    the year ending December 31, 2027;
24        (11) 14.8% cumulative persisting annual savings for
25    the year ending December 31, 2028;
26        (12) 15.4% cumulative persisting annual savings for

 

 

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1    the year ending December 31, 2029; and
2        (13) 16% cumulative persisting annual savings for the
3    year ending December 31, 2030.
4    No later than December 31, 2020, the Illinois Commerce
5Commission shall establish additional cumulative persisting
6annual savings goals for the years 2031 through 2035. The
7Commission shall also establish additional cumulative
8persisting annual savings goals every 5 years thereafter to
9ensure utilities always have goals that extend at least 11
10years into the future. The cumulative persisting annual savings
11goals beyond the year 2030 shall increase by 0.6 percentage
12points per year, absent a Commission decision to initiate a
13proceeding to consider establishing goals that increase by more
14or less than that amount. Such a proceeding must be conducted
15in accordance with the procedures described in subsection (f)of
16this Section. If such a proceeding is initiated, the cumulative
17persisting annual savings goals established by the Commission
18through that proceeding shall reflect the Commission's best
19estimate of the maximum amount of additional savings that are
20forecast to be cost-effectively achievable unless such best
21estimates would result in goals that represent less than 0.4
22percentage point annual increases in total cumulative
23persisting annual savings. The Commission may only establish
24goals that represent less than 0.4 percentage point annual
25increases in cumulative persisting annual savings if it can
26demonstrate, based on clear and convincing evidence, that 0.4

 

 

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1percentage point increases are not cost-effectively
2achievable. The Commission shall inform its decision based on
3an energy efficiency potential study which conforms to the
4requirements of subsection (f-5) of this Section.
5    The difference between the cumulative persisting annual
6savings goal for the applicable calendar year and the
7cumulative persisting annual savings goal for the immediately
8preceding calendar year is 0.8% for the period of January 1,
92018 through December 31, 2025 and 0.6% for the period of
10January 1, 2026 through December 31, 2030.
11    (b-20) Each electric utility subject to this Section may
12include cost-effective voltage optimization measures in its
13plans submitted under subsections (f) and (g) of this Section,
14and the costs incurred by a utility to implement the measures
15under a Commission-approved plan shall be recovered under the
16provisions of Article IX or Section 16-108.5 of this Act. For
17purposes of this Section, the measure life of voltage
18optimization measures shall be 15 years. The measure life
19period is independent of the depreciation rate of the voltage
20optimization assets deployed. Utilities may claim savings from
21voltage optimization on circuits for more than 15 years if they
22can demonstrate that they have made additional investments
23necessary to enable voltage optimization savings to continue
24beyond 15 years. Such demonstrations must be subject to the
25review of independent evaluation.
26    Within 270 days after June 1, 2017 (the effective date of

 

 

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1Public Act 99-906) this amendatory Act of the 99th General
2Assembly, an electric utility that serves less than 3,000,000
3retail customers but more than 500,000 retail customers in the
4State shall file a plan with the Commission that identifies the
5cost-effective voltage optimization investment the electric
6utility plans to undertake through December 31, 2024. The
7Commission, after notice and hearing, shall approve or approve
8with modification the plan within 120 days after the plan's
9filing and, in the order approving or approving with
10modification the plan, the Commission shall adjust the
11applicable cumulative persisting annual savings goals set
12forth in subsection (b-15) to reflect any amount of
13cost-effective energy savings approved by the Commission that
14is greater than or less than the following cumulative
15persisting annual savings values attributable to voltage
16optimization for the applicable year:
17        (1) 0.0% of cumulative persisting annual savings for
18    the year ending December 31, 2018;
19        (2) 0.17% of cumulative persisting annual savings for
20    the year ending December 31, 2019;
21        (3) 0.17% of cumulative persisting annual savings for
22    the year ending December 31, 2020;
23        (4) 0.33% of cumulative persisting annual savings for
24    the year ending December 31, 2021;
25        (5) 0.5% of cumulative persisting annual savings for
26    the year ending December 31, 2022;

 

 

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1        (6) 0.67% of cumulative persisting annual savings for
2    the year ending December 31, 2023;
3        (7) 0.83% of cumulative persisting annual savings for
4    the year ending December 31, 2024; and
5        (8) 1.0% of cumulative persisting annual savings for
6    the year ending December 31, 2025 and all subsequent years.
7    (b-25) In the event an electric utility jointly offers an
8energy efficiency measure or program with a gas utility under
9plans approved under this Section and Section 8-104 of this
10Act, the electric utility may continue offering the program,
11including the gas energy efficiency measures, in the event the
12gas utility discontinues funding the program. In that event,
13the energy savings value associated with such other fuels shall
14be converted to electric energy savings on an equivalent Btu
15basis for the premises. However, the electric utility shall
16prioritize programs for low-income residential customers to
17the extent practicable. An electric utility may recover the
18costs of offering the gas energy efficiency measures under this
19subsection (b-25).
20    For those energy efficiency measures or programs that save
21both electricity and other fuels but are not jointly offered
22with a gas utility under plans approved under this Section and
23Section 8-104 or not offered with an affiliated gas utility
24under paragraph (6) of subsection (f) of Section 8-104 of this
25Act, the electric utility may count savings of fuels other than
26electricity toward the achievement of its annual savings goal,

 

 

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1and the energy savings value associated with such other fuels
2shall be converted to electric energy savings on an equivalent
3Btu basis at the premises.
4    In no event shall more than 10% of each year's applicable
5annual total savings requirement incremental goal as defined in
6paragraph (7) of subsection (g) of this Section be met through
7savings of fuels other than electricity.
8    (c) Electric utilities shall be responsible for overseeing
9the design, development, and filing of energy efficiency plans
10with the Commission and may, as part of that implementation,
11outsource various aspects of program development and
12implementation. A minimum of 10%, for electric utilities that
13serve more than 3,000,000 retail customers in the State, and a
14minimum of 7%, for electric utilities that serve less than
153,000,000 retail customers but more than 500,000 retail
16customers in the State, of the utility's entire portfolio
17funding level for a given year shall be used to procure
18cost-effective energy efficiency measures from units of local
19government, municipal corporations, school districts, public
20housing, and community college districts, and buildings owned
21by nonprofit organizations,, provided that a minimum
22percentage of available funds shall be used to procure energy
23efficiency from public housing, which percentage shall be equal
24to public housing's share of public building energy
25consumption.
26    The utilities shall also implement energy efficiency

 

 

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1measures targeted at low-income households, which, for
2purposes of this Section, shall be defined as households at or
3below 80% of area median income, and expenditures to implement
4the measures shall be no less than $35,000,000 $25,000,000 per
5year for electric utilities that serve more than 3,000,000
6retail customers in the State and no less than $11,000,000
7$8,350,000 per year for electric utilities that serve less than
83,000,000 retail customers but more than 500,000 retail
9customers in the State. Spending on efficiency programs
10targeted at low-income households shall be approximately
11proportional to the magnitude of cost-effective energy
12efficiency opportunities in low-income single-family and
13multi-family buildings.
14    The utilities shall work to bundle low-income energy
15efficiency offerings with other programs that serve low-income
16households to maximize the benefits going to these households.
17The utilities shall market and implement low-income energy
18efficiency programs in coordination with low-income assistance
19programs, Solar for All, and weatherization whenever
20practicable. The program implementer shall walk the customer
21through the enrollment process for any programs for which the
22customer is eligible. The utilities shall also pilot targeting
23customers with high arrearages, high energy intensity (ratio of
24energy usage divided by home or unit square footage), or energy
25assistance programs with energy efficiency offerings, and then
26track reduction in arrearages as a result of the targeting.

 

 

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1This targeting and bundling of low-income energy programs shall
2be offered to both low-income single-family and multi-family
3customers (owners and residents).
4    The utilities shall also implement a health and safety fund
5of a minimum of 0.5%, for electric utilities that serve more
6than 3,000,000 retail customers in the State, and a minimum of
70.5%, for electric utilities that serve less than 3,000,000
8retail customers but more than 500,000 retail customers in the
9State, of the utility's entire portfolio funding level for a
10given year, that shall be used for the purpose of making grants
11for technical assistance, construction, reconstruction,
12improvement, or repair of buildings to facilitate their
13participation in the energy efficiency programs targeted at
14low-income single-family and multi-family households. These
15funds may also be used for the purpose of making grants for
16technical assistance, construction, reconstruction,
17improvement, or repair of the following buildings to facilitate
18their participation in the energy efficiency programs created
19by this Section: (1) buildings that are owned or operated by
20registered 501(c)(3) public charities; and (2) day care
21centers, day care homes, or group day care homes, as defined
22under 89 Ill. Adm. Code Part 406, 407, or 408, respectively.
23    Each electric utility shall assess opportunities to
24implement cost-effective energy efficiency measures and
25programs through a public housing authority or authorities
26located in its service territory. If such opportunities are

 

 

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1identified, the utility shall propose such measures and
2programs to address the opportunities. Expenditures to address
3such opportunities shall be credited toward the minimum
4procurement and expenditure requirements set forth in this
5subsection (c).
6    Implementation of energy efficiency measures and programs
7targeted at low-income households should be contracted, when it
8is practicable, to independent third parties that have
9demonstrated capabilities to serve such households, with a
10preference for not-for-profit entities and government agencies
11that have existing relationships with or experience serving
12low-income communities in the State.
13    Each electric utility shall develop and implement
14reporting procedures that address and assist in determining the
15amount of energy savings that can be applied to the low-income
16procurement and expenditure requirements set forth in this
17subsection (c).
18    The electric utilities participate in shall also convene a
19low-income energy efficiency advisory committee to allow a
20variety of stakeholders, especially those living or working in
21low-communities, to assist in the design and evaluation of the
22low-income energy efficiency programs. The committee shall be
23comprised of the electric utilities subject to the requirements
24of this Section, the gas utilities subject to the requirements
25of Section 8-104.1 8-104 of this Act, the utilities' low-income
26energy efficiency implementation contractors, nonprofit

 

 

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1organizations, community action agencies, advocacy groups,
2State and local governmental agencies, and representatives of
3community-based organizations. The committee shall be convened
4by an independent third-party facilitator and a
5community-based organization in a low-income community. There
6shall be a leadership committee comprised of a variety of
7stakeholders, with at least one community-based organization
8involved. Meetings shall include concrete opportunities for
9groups to provide meaningful input into plan design, mid-cycle
10changes, and evaluation throughout the year to help reduce
11litigation in future plan filings. All meetings must be
12accessible, with rotating locations, call-in options, and
13materials and agendas circulated well in advance. There shall
14also be opportunities for input outside of meetings from those
15with limited capacity and ability to attend, via one-on-one
16meetings, surveys, and calls. Meetings shall also include
17opportunities to bundle and coordinate low-income energy
18efficiency with Solar for All and energy assistance programs.
19Meetings shall include educational opportunities for
20stakeholders to learn more about these additional offerings,
21and the committee shall assist in the figuring out the best
22methods for coordinated delivery and implementation of
23offerings when serving low-income communities.
24    (d) Notwithstanding any other provision of law to the
25contrary, a utility providing approved energy efficiency
26measures and, if applicable, demand-response measures in the

 

 

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1State shall be permitted to recover all reasonable and
2prudently incurred costs of those measures from all retail
3customers, except as provided in subsection (l) of this
4Section, as follows, provided that nothing in this subsection
5(d) permits the double recovery of such costs from customers:
6        (1) The utility may recover its costs through an
7    automatic adjustment clause tariff filed with and approved
8    by the Commission. The tariff shall be established outside
9    the context of a general rate case. Each year the
10    Commission shall initiate a review to reconcile any amounts
11    collected with the actual costs and to determine the
12    required adjustment to the annual tariff factor to match
13    annual expenditures. To enable the financing of the
14    incremental capital expenditures, including regulatory
15    assets, for electric utilities that serve less than
16    3,000,000 retail customers but more than 500,000 retail
17    customers in the State, the utility's actual year-end
18    capital structure that includes a common equity ratio,
19    excluding goodwill, of up to and including 50% of the total
20    capital structure shall be deemed reasonable and used to
21    set rates.
22        (2) A utility may recover its costs through an energy
23    efficiency formula rate approved by the Commission under a
24    filing under subsections (f) and (g) of this Section, which
25    shall specify the cost components that form the basis of
26    the rate charged to customers with sufficient specificity

 

 

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1    to operate in a standardized manner and be updated annually
2    with transparent information that reflects the utility's
3    actual costs to be recovered during the applicable rate
4    year, which is the period beginning with the first billing
5    day of January and extending through the last billing day
6    of the following December. The energy efficiency formula
7    rate shall be implemented through a tariff filed with the
8    Commission under subsections (f) and (g) of this Section
9    that is consistent with the provisions of this paragraph
10    (2) and that shall be applicable to all delivery services
11    customers. The Commission shall conduct an investigation
12    of the tariff in a manner consistent with the provisions of
13    this paragraph (2), subsections (f) and (g) of this
14    Section, and the provisions of Article IX of this Act to
15    the extent they do not conflict with this paragraph (2).
16    The energy efficiency formula rate approved by the
17    Commission shall remain in effect at the discretion of the
18    utility and shall do the following:
19            (A) Provide for the recovery of the utility's
20        actual costs incurred under this Section that are
21        prudently incurred and reasonable in amount consistent
22        with Commission practice and law. The sole fact that a
23        cost differs from that incurred in a prior calendar
24        year or that an investment is different from that made
25        in a prior calendar year shall not imply the imprudence
26        or unreasonableness of that cost or investment.

 

 

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1            (B) Reflect the utility's actual year-end capital
2        structure for the applicable calendar year, excluding
3        goodwill, subject to a determination of prudence and
4        reasonableness consistent with Commission practice and
5        law. To enable the financing of the incremental capital
6        expenditures, including regulatory assets, for
7        electric utilities that serve less than 3,000,000
8        retail customers but more than 500,000 retail
9        customers in the State, a participating electric
10        utility's actual year-end capital structure that
11        includes a common equity ratio, excluding goodwill, of
12        up to and including 50% of the total capital structure
13        shall be deemed reasonable and used to set rates.
14            (C) Include a cost of equity, which shall be
15        calculated as the sum of the following:
16                (i) the average for the applicable calendar
17            year of the monthly average yields of 30-year U.S.
18            Treasury bonds published by the Board of Governors
19            of the Federal Reserve System in its weekly H.15
20            Statistical Release or successor publication; and
21                (ii) 580 basis points.
22            At such time as the Board of Governors of the
23        Federal Reserve System ceases to include the monthly
24        average yields of 30-year U.S. Treasury bonds in its
25        weekly H.15 Statistical Release or successor
26        publication, the monthly average yields of the U.S.

 

 

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1        Treasury bonds then having the longest duration
2        published by the Board of Governors in its weekly H.15
3        Statistical Release or successor publication shall
4        instead be used for purposes of this paragraph (2).
5            (D) Permit and set forth protocols, subject to a
6        determination of prudence and reasonableness
7        consistent with Commission practice and law, for the
8        following:
9                (i) recovery of incentive compensation expense
10            that is based on the achievement of operational
11            metrics, including metrics related to budget
12            controls, outage duration and frequency, safety,
13            customer service, efficiency and productivity, and
14            environmental compliance; however, this protocol
15            shall not apply if such expense related to costs
16            incurred under this Section is recovered under
17            Article IX or Section 16-108.5 of this Act;
18            incentive compensation expense that is based on
19            net income or an affiliate's earnings per share
20            shall not be recoverable under the energy
21            efficiency formula rate;
22                (ii) recovery of pension and other
23            post-employment benefits expense, provided that
24            such costs are supported by an actuarial study;
25            however, this protocol shall not apply if such
26            expense related to costs incurred under this

 

 

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1            Section is recovered under Article IX or Section
2            16-108.5 of this Act;
3                (iii) recovery of existing regulatory assets
4            over the periods previously authorized by the
5            Commission;
6                (iv) as described in subsection (e),
7            amortization of costs incurred under this Section;
8            and
9                (v) projected, weather normalized billing
10            determinants for the applicable rate year.
11            (E) Provide for an annual reconciliation, as
12        described in paragraph (3) of this subsection (d), less
13        any deferred taxes related to the reconciliation, with
14        interest at an annual rate of return equal to the
15        utility's weighted average cost of capital, including
16        a revenue conversion factor calculated to recover or
17        refund all additional income taxes that may be payable
18        or receivable as a result of that return, of the energy
19        efficiency revenue requirement reflected in rates for
20        each calendar year, beginning with the calendar year in
21        which the utility files its energy efficiency formula
22        rate tariff under this paragraph (2), with what the
23        revenue requirement would have been had the actual cost
24        information for the applicable calendar year been
25        available at the filing date.
26        The utility shall file, together with its tariff, the

 

 

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1    projected costs to be incurred by the utility during the
2    rate year under the utility's multi-year plan approved
3    under subsections (f) and (g) of this Section, including,
4    but not limited to, the projected capital investment costs
5    and projected regulatory asset balances with
6    correspondingly updated depreciation and amortization
7    reserves and expense, that shall populate the energy
8    efficiency formula rate and set the initial rates under the
9    formula.
10        The Commission shall review the proposed tariff in
11    conjunction with its review of a proposed multi-year plan,
12    as specified in paragraph (5) of subsection (g) of this
13    Section. The review shall be based on the same evidentiary
14    standards, including, but not limited to, those concerning
15    the prudence and reasonableness of the costs incurred by
16    the utility, the Commission applies in a hearing to review
17    a filing for a general increase in rates under Article IX
18    of this Act. The initial rates shall take effect beginning
19    with the January monthly billing period following the
20    Commission's approval.
21        The tariff's rate design and cost allocation across
22    customer classes shall be consistent with the utility's
23    automatic adjustment clause tariff in effect on June 1,
24    2017 (the effective date of Public Act 99-906) this
25    amendatory Act of the 99th General Assembly; however, the
26    Commission may revise the tariff's rate design and cost

 

 

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1    allocation in subsequent proceedings under paragraph (3)
2    of this subsection (d).
3        If the energy efficiency formula rate is terminated,
4    the then current rates shall remain in effect until such
5    time as the energy efficiency costs are incorporated into
6    new rates that are set under this subsection (d) or Article
7    IX of this Act, subject to retroactive rate adjustment,
8    with interest, to reconcile rates charged with actual
9    costs.
10        (3) The provisions of this paragraph (3) shall only
11    apply to an electric utility that has elected to file an
12    energy efficiency formula rate under paragraph (2) of this
13    subsection (d). Subsequent to the Commission's issuance of
14    an order approving the utility's energy efficiency formula
15    rate structure and protocols, and initial rates under
16    paragraph (2) of this subsection (d), the utility shall
17    file, on or before June 1 of each year, with the Chief
18    Clerk of the Commission its updated cost inputs to the
19    energy efficiency formula rate for the applicable rate year
20    and the corresponding new charges, as well as the
21    information described in paragraph (9) of subsection (g) of
22    this Section. Each such filing shall conform to the
23    following requirements and include the following
24    information:
25            (A) The inputs to the energy efficiency formula
26        rate for the applicable rate year shall be based on the

 

 

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1        projected costs to be incurred by the utility during
2        the rate year under the utility's multi-year plan
3        approved under subsections (f) and (g) of this Section,
4        including, but not limited to, projected capital
5        investment costs and projected regulatory asset
6        balances with correspondingly updated depreciation and
7        amortization reserves and expense. The filing shall
8        also include a reconciliation of the energy efficiency
9        revenue requirement that was in effect for the prior
10        rate year (as set by the cost inputs for the prior rate
11        year) with the actual revenue requirement for the prior
12        rate year (determined using a year-end rate base) that
13        uses amounts reflected in the applicable FERC Form 1
14        that reports the actual costs for the prior rate year.
15        Any over-collection or under-collection indicated by
16        such reconciliation shall be reflected as a credit
17        against, or recovered as an additional charge to,
18        respectively, with interest calculated at a rate equal
19        to the utility's weighted average cost of capital
20        approved by the Commission for the prior rate year, the
21        charges for the applicable rate year. Such
22        over-collection or under-collection shall be adjusted
23        to remove any deferred taxes related to the
24        reconciliation, for purposes of calculating interest
25        at an annual rate of return equal to the utility's
26        weighted average cost of capital approved by the

 

 

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1        Commission for the prior rate year, including a revenue
2        conversion factor calculated to recover or refund all
3        additional income taxes that may be payable or
4        receivable as a result of that return. Each
5        reconciliation shall be certified by the participating
6        utility in the same manner that FERC Form 1 is
7        certified. The filing shall also include the charge or
8        credit, if any, resulting from the calculation
9        required by subparagraph (E) of paragraph (2) of this
10        subsection (d).
11            Notwithstanding any other provision of law to the
12        contrary, the intent of the reconciliation is to
13        ultimately reconcile both the revenue requirement
14        reflected in rates for each calendar year, beginning
15        with the calendar year in which the utility files its
16        energy efficiency formula rate tariff under paragraph
17        (2) of this subsection (d), with what the revenue
18        requirement determined using a year-end rate base for
19        the applicable calendar year would have been had the
20        actual cost information for the applicable calendar
21        year been available at the filing date.
22            For purposes of this Section, "FERC Form 1" means
23        the Annual Report of Major Electric Utilities,
24        Licensees and Others that electric utilities are
25        required to file with the Federal Energy Regulatory
26        Commission under the Federal Power Act, Sections 3,

 

 

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1        4(a), 304 and 209, modified as necessary to be
2        consistent with 83 Ill. Admin. Code Part 415 as of May
3        1, 2011. Nothing in this Section is intended to allow
4        costs that are not otherwise recoverable to be
5        recoverable by virtue of inclusion in FERC Form 1.
6            (B) The new charges shall take effect beginning on
7        the first billing day of the following January billing
8        period and remain in effect through the last billing
9        day of the next December billing period regardless of
10        whether the Commission enters upon a hearing under this
11        paragraph (3).
12            (C) The filing shall include relevant and
13        necessary data and documentation for the applicable
14        rate year. Normalization adjustments shall not be
15        required.
16        Within 45 days after the utility files its annual
17    update of cost inputs to the energy efficiency formula
18    rate, the Commission shall with reasonable notice,
19    initiate a proceeding concerning whether the projected
20    costs to be incurred by the utility and recovered during
21    the applicable rate year, and that are reflected in the
22    inputs to the energy efficiency formula rate, are
23    consistent with the utility's approved multi-year plan
24    under subsections (f) and (g) of this Section and whether
25    the costs incurred by the utility during the prior rate
26    year were prudent and reasonable. The Commission shall also

 

 

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1    have the authority to investigate the information and data
2    described in paragraph (9) of subsection (g) of this
3    Section, including the proposed adjustment to the
4    utility's return on equity component of its weighted
5    average cost of capital. During the course of the
6    proceeding, each objection shall be stated with
7    particularity and evidence provided in support thereof,
8    after which the utility shall have the opportunity to rebut
9    the evidence. Discovery shall be allowed consistent with
10    the Commission's Rules of Practice, which Rules of Practice
11    shall be enforced by the Commission or the assigned
12    administrative law judge. The Commission shall apply the
13    same evidentiary standards, including, but not limited to,
14    those concerning the prudence and reasonableness of the
15    costs incurred by the utility, during the proceeding as it
16    would apply in a proceeding to review a filing for a
17    general increase in rates under Article IX of this Act. The
18    Commission shall not, however, have the authority in a
19    proceeding under this paragraph (3) to consider or order
20    any changes to the structure or protocols of the energy
21    efficiency formula rate approved under paragraph (2) of
22    this subsection (d). In a proceeding under this paragraph
23    (3), the Commission shall enter its order no later than the
24    earlier of 195 days after the utility's filing of its
25    annual update of cost inputs to the energy efficiency
26    formula rate or December 15. The utility's proposed return

 

 

10100HB3624ham001- 196 -LRB101 09870 JLS 56878 a

1    on equity calculation, as described in paragraphs (7)
2    through (9) of subsection (g) of this Section, shall be
3    deemed the final, approved calculation on December 15 of
4    the year in which it is filed unless the Commission enters
5    an order on or before December 15, after notice and
6    hearing, that modifies such calculation consistent with
7    this Section. The Commission's determinations of the
8    prudence and reasonableness of the costs incurred, and
9    determination of such return on equity calculation, for the
10    applicable calendar year shall be final upon entry of the
11    Commission's order and shall not be subject to reopening,
12    reexamination, or collateral attack in any other
13    Commission proceeding, case, docket, order, rule, or
14    regulation; however, nothing in this paragraph (3) shall
15    prohibit a party from petitioning the Commission to rehear
16    or appeal to the courts the order under the provisions of
17    this Act.
18    (e) Beginning on June 1, 2017 (the effective date of Public
19Act 99-906) this amendatory Act of the 99th General Assembly, a
20utility subject to the requirements of this Section may elect
21to defer, as a regulatory asset, up to the full amount of its
22expenditures incurred under this Section for each annual
23period, including, but not limited to, any expenditures
24incurred above the funding level set by subsection (f) of this
25Section for a given year. The total expenditures deferred as a
26regulatory asset in a given year shall be amortized and

 

 

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1recovered over a period that is equal to the weighted average
2of the energy efficiency measure lives implemented for that
3year that are reflected in the regulatory asset. The
4unamortized balance shall be recognized as of December 31 for a
5given year. The utility shall also earn a return on the total
6of the unamortized balances of all of the energy efficiency
7regulatory assets, less any deferred taxes related to those
8unamortized balances, at an annual rate equal to the utility's
9weighted average cost of capital that includes, based on a
10year-end capital structure, the utility's actual cost of debt
11for the applicable calendar year and a cost of equity, which
12shall be calculated as the sum of the (i) the average for the
13applicable calendar year of the monthly average yields of
1430-year U.S. Treasury bonds published by the Board of Governors
15of the Federal Reserve System in its weekly H.15 Statistical
16Release or successor publication; and (ii) 580 basis points,
17including a revenue conversion factor calculated to recover or
18refund all additional income taxes that may be payable or
19receivable as a result of that return. Capital investment costs
20shall be depreciated and recovered over their useful lives
21consistent with generally accepted accounting principles. The
22weighted average cost of capital shall be applied to the
23capital investment cost balance, less any accumulated
24depreciation and accumulated deferred income taxes, as of
25December 31 for a given year.
26    When an electric utility creates a regulatory asset under

 

 

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1the provisions of this Section, the costs are recovered over a
2period during which customers also receive a benefit which is
3in the public interest. Accordingly, it is the intent of the
4General Assembly that an electric utility that elects to create
5a regulatory asset under the provisions of this Section shall
6recover all of the associated costs as set forth in this
7Section. After the Commission has approved the prudence and
8reasonableness of the costs that comprise the regulatory asset,