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Public Act 098-0672


 

Public Act 0672 98TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 098-0672
 
HB2427 EnrolledLRB098 09433 JLS 39574 b

    AN ACT concerning public utilities.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Power Agency Act is amended by
changing Section 1-56 as follows:
 
    (20 ILCS 3855/1-56)
    Sec. 1-56. Illinois Power Agency Renewable Energy
Resources Fund.
    (a) The Illinois Power Agency Renewable Energy Resources
Fund is created as a special fund in the State treasury.
    (b) The Illinois Power Agency Renewable Energy Resources
Fund shall be administered by the Agency to procure renewable
energy resources. Prior to June 1, 2011, resources procured
pursuant to this Section shall be procured from facilities
located in Illinois, provided the resources are available from
those facilities. If resources are not available in Illinois,
then they shall be procured in states that adjoin Illinois. If
resources are not available in Illinois or in states that
adjoin Illinois, then they may be purchased elsewhere.
Beginning June 1, 2011, resources procured pursuant to this
Section shall be procured from facilities located in Illinois
or states that adjoin Illinois. If resources are not available
in Illinois or in states that adjoin Illinois, then they may be
procured elsewhere. To the extent available, at least 75% of
these renewable energy resources shall come from wind
generation. Of the renewable energy resources procured
pursuant to this Section at least the following specified
percentages shall come from photovoltaics on the following
schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by
June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the
renewable energy resources procured pursuant to this Section,
at least the following percentages shall come from distributed
renewable energy generation devices: 0.5% by June 1, 2013,
0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter.
To the extent available, half of the renewable energy resources
procured from distributed renewable energy generation shall
come from devices of less than 25 kilowatts in nameplate
capacity. Renewable energy resources procured from distributed
generation devices may also count towards the required
percentages for wind and solar photovoltaics. Procurement of
renewable energy resources from distributed renewable energy
generation devices shall be done on an annual basis through
multi-year contracts of no less than 5 years, and shall consist
solely of renewable energy credits.
    The Agency shall create credit requirements for suppliers
of distributed renewable energy. In order to minimize the
administrative burden on contracting entities, the Agency
shall solicit the use of third-party organizations to aggregate
distributed renewable energy into groups of no less than one
megawatt in installed capacity. These third-party
organizations shall administer contracts with individual
distributed renewable energy generation device owners. An
individual distributed renewable energy generation device
owner shall have the ability to measure the output of his or
her distributed renewable energy generation device.
    (c) The Agency shall procure renewable energy resources at
least once each year in conjunction with a procurement event
for electric utilities required to comply with Section 1-75 of
the Act and shall, whenever possible, enter into long-term
contracts on an annual basis for a portion of the incremental
requirement for the given procurement year.
    (d) The price paid to procure renewable energy credits
using monies from the Illinois Power Agency Renewable Energy
Resources Fund shall not exceed the winning bid prices paid for
like resources procured for electric utilities required to
comply with Section 1-75 of this Act.
    (e) All renewable energy credits procured using monies from
the Illinois Power Agency Renewable Energy Resources Fund shall
be permanently retired.
    (f) The procurement process described in this Section is
exempt from the requirements of the Illinois Procurement Code,
pursuant to Section 20-10 of that Code.
    (g) All disbursements from the Illinois Power Agency
Renewable Energy Resources Fund shall be made only upon
warrants of the Comptroller drawn upon the Treasurer as
custodian of the Fund upon vouchers signed by the Director or
by the person or persons designated by the Director for that
purpose. The Comptroller is authorized to draw the warrant upon
vouchers so signed. The Treasurer shall accept all warrants so
signed and shall be released from liability for all payments
made on those warrants.
    (h) The Illinois Power Agency Renewable Energy Resources
Fund shall not be subject to sweeps, administrative charges, or
chargebacks, including, but not limited to, those authorized
under Section 8h of the State Finance Act, that would in any
way result in the transfer of any funds from this Fund to any
other fund of this State or in having any such funds utilized
for any purpose other than the express purposes set forth in
this Section.
    (i) Supplemental procurement process.
        (1) Within 90 days after the effective date of this
    amendatory Act of the 98th General Assembly, the Agency
    shall develop a one-time supplemental procurement plan
    limited to the procurement of renewable energy credits, if
    available, from new or existing photovoltaics, including,
    but not limited to, distributed photovoltaic generation.
    Nothing in this subsection (i) requires procurement of wind
    generation through the supplemental procurement.
        Renewable energy credits procured from new
    photovoltaics, including, but not limited to, distributed
    photovoltaic generation, under this subsection (i) must be
    procured from devices installed by a qualified person. In
    its supplemental procurement plan, the Agency shall
    establish contractually enforceable mechanisms for
    ensuring that the installation of new photovoltaics is
    performed by a qualified person.
        For the purposes of this paragraph (1), "qualified
    person" means a person who performs installations of
    photovoltaics, including, but not limited to, distributed
    photovoltaic generation, and who: (A) has completed an
    apprenticeship as a journeyman electrician from a United
    States Department of Labor registered electrical
    apprenticeship and training program and received a
    certification of satisfactory completion; or (B) does not
    currently meet the criteria under clause (A) of this
    paragraph (1), but is enrolled in a United States
    Department of Labor registered electrical apprenticeship
    program, provided that the person is directly supervised by
    a person who meets the criteria under clause (A) of this
    paragraph (1); or (C) has obtained one of the following
    credentials in addition to attesting to satisfactory
    completion of at least 5 years or 8,000 hours of documented
    hands-on electrical experience: (i) a North American Board
    of Certified Energy Practitioners (NABCEP) Installer
    Certificate for Solar PV; (ii) an Underwriters
    Laboratories (UL) PV Systems Installer Certificate; (iii)
    an Electronics Technicians Association, International
    (ETAI) Level 3 PV Installer Certificate; or (iv) an
    Associate in Applied Science degree from an Illinois
    Community College Board approved community college program
    in renewable energy or a distributed generation
    technology.
        For the purposes of this paragraph (1), "directly
    supervised" means that there is a qualified person who
    meets the qualifications under clause (A) of this paragraph
    (1) and who is available for supervision and consultation
    regarding the work performed by persons under clause (B) of
    this paragraph (1), including a final inspection of the
    installation work that has been directly supervised to
    ensure safety and conformity with applicable codes.
        For the purposes of this paragraph (1), "install" means
    the major activities and actions required to connect, in
    accordance with applicable building and electrical codes,
    the conductors, connectors, and all associated fittings,
    devices, power outlets, or apparatuses mounted at the
    premises that are directly involved in delivering energy to
    the premises' electrical wiring from the photovoltaics,
    including, but not limited to, to distributed photovoltaic
    generation.
        The renewable energy credits procured pursuant to the
    supplemental procurement plan shall be procured using up to
    $30,000,000 from the Illinois Power Agency Renewable
    Energy Resources Fund. The Agency shall not plan to use
    funds from the Illinois Power Agency Renewable Energy
    Resources Fund in excess of the monies on deposit in such
    fund or projected to be deposited into such fund. The
    supplemental procurement plan shall ensure adequate,
    reliable, affordable, efficient, and environmentally
    sustainable renewable energy resources (including credits)
    at the lowest total cost over time, taking into account any
    benefits of price stability.
        To the extent available, 50% of the renewable energy
    credits procured from distributed renewable energy
    generation shall come from devices of less than 25
    kilowatts in nameplate capacity. Procurement of renewable
    energy credits from distributed renewable energy
    generation devices shall be done through multi-year
    contracts of no less than 5 years. The Agency shall create
    credit requirements for counterparties. In order to
    minimize the administrative burden on contracting
    entities, the Agency shall solicit the use of third parties
    to aggregate distributed renewable energy. These third
    parties shall enter into and administer contracts with
    individual distributed renewable energy generation device
    owners. An individual distributed renewable energy
    generation device owner shall have the ability to measure
    the output of his or her distributed renewable energy
    generation device.
        In developing the supplemental procurement plan, the
    Agency shall hold at least one workshop open to the public
    within 90 days after the effective date of this amendatory
    Act of the 98th General Assembly and shall consider any
    comments made by stakeholders or the public. Upon
    development of the supplemental procurement plan within
    this 90-day period, copies of the supplemental procurement
    plan shall be posted and made publicly available on the
    Agency's and Commission's websites. All interested parties
    shall have 14 days following the date of posting to provide
    comment to the Agency on the supplemental procurement plan.
    All comments submitted to the Agency shall be specific,
    supported by data or other detailed analyses, and, if
    objecting to all or a portion of the supplemental
    procurement plan, accompanied by specific alternative
    wording or proposals. All comments shall be posted on the
    Agency's and Commission's websites. Within 14 days
    following the end of the 14-day review period, the Agency
    shall revise the supplemental procurement plan as
    necessary based on the comments received and file its
    revised supplemental procurement plan with the Commission
    for approval.
        (2) Within 5 days after the filing of the supplemental
    procurement plan at the Commission, any person objecting to
    the supplemental procurement plan shall file an objection
    with the Commission. Within 10 days after the filing, the
    Commission shall determine whether a hearing is necessary.
    The Commission shall enter its order confirming or
    modifying the supplemental procurement plan within 90 days
    after the filing of the supplemental procurement plan by
    the Agency.
        (3) The Commission shall approve the supplemental
    procurement plan of renewable energy credits to be procured
    from new or existing photovoltaics, including, but not
    limited to, distributed photovoltaic generation, if the
    Commission determines that it will ensure adequate,
    reliable, affordable, efficient, and environmentally
    sustainable electric service in the form of renewable
    energy credits at the lowest total cost over time, taking
    into account any benefits of price stability.
        (4) The supplemental procurement process under this
    subsection (i) shall include each of the following
    components:
            (A) Procurement administrator. The Agency may
        retain a procurement administrator in the manner set
        forth in item (2) of subsection (a) of Section 1-75 of
        this Act to conduct the supplemental procurement or may
        elect to use the same procurement administrator
        administering the Agency's annual procurement under
        Section 1-75.
            (B) Procurement monitor. The procurement monitor
        retained by the Commission pursuant to Section
        16-111.5 of the Public Utilities Act shall:
                (i) monitor interactions among the procurement
            administrator and bidders and suppliers;
                (ii) monitor and report to the Commission on
            the progress of the supplemental procurement
            process;
                (iii) provide an independent confidential
            report to the Commission regarding the results of
            the procurement events;
                (iv) assess compliance with the procurement
            plan approved by the Commission for the
            supplemental procurement process;
                (v) preserve the confidentiality of supplier
            and bidding information in a manner consistent
            with all applicable laws, rules, regulations, and
            tariffs;
                (vi) provide expert advice to the Commission
            and consult with the procurement administrator
            regarding issues related to procurement process
            design, rules, protocols, and policy-related
            matters;
                (vii) consult with the procurement
            administrator regarding the development and use of
            benchmark criteria, standard form contracts,
            credit policies, and bid documents; and
                (viii) perform, with respect to the
            supplemental procurement process, any other
            procurement monitor duties specifically delineated
            within subsection (i) of this Section.
            (C) Solicitation, pre-qualification, and
        registration of bidders. The procurement administrator
        shall disseminate information to potential bidders to
        promote a procurement event, notify potential bidders
        that the procurement administrator may enter into a
        post-bid price negotiation with bidders that meet the
        applicable benchmarks, provide supply requirements,
        and otherwise explain the competitive procurement
        process. In addition to such other publication as the
        procurement administrator determines is appropriate,
        this information shall be posted on the Agency's and
        the Commission's websites. The procurement
        administrator shall also administer the
        prequalification process, including evaluation of
        credit worthiness, compliance with procurement rules,
        and agreement to the standard form contract developed
        pursuant to item (D) of this paragraph (4). The
        procurement administrator shall then identify and
        register bidders to participate in the procurement
        event.
            (D) Standard contract forms and credit terms and
        instruments. The procurement administrator, in
        consultation with the Agency, the Commission, and
        other interested parties and subject to Commission
        oversight, shall develop and provide standard contract
        forms for the supplier contracts that meet generally
        accepted industry practices as well as include any
        applicable State of Illinois terms and conditions that
        are required for contracts entered into by an agency of
        the State of Illinois. Standard credit terms and
        instruments that meet generally accepted industry
        practices shall be similarly developed. Contracts for
        new photovoltaics shall include a provision attesting
        that the supplier will use a qualified person for the
        installation of the device pursuant to paragraph (1) of
        subsection (i) of this Section. The procurement
        administrator shall make available to the Commission
        all written comments it receives on the contract forms,
        credit terms, or instruments. If the procurement
        administrator cannot reach agreement with the parties
        as to the contract terms and conditions, the
        procurement administrator must notify the Commission
        of any disputed terms and the Commission shall resolve
        the dispute. The terms of the contracts shall not be
        subject to negotiation by winning bidders, and the
        bidders must agree to the terms of the contract in
        advance so that winning bids are selected solely on the
        basis of price.
            (E) Requests for proposals; competitive
        procurement process. The procurement administrator
        shall design and issue requests for proposals to supply
        renewable energy credits in accordance with the
        supplemental procurement plan, as approved by the
        Commission. The requests for proposals shall set forth
        a procedure for sealed, binding commitment bidding
        with pay-as-bid settlement, and provision for
        selection of bids on the basis of price, provided,
        however, that no bid shall be accepted if it exceeds
        the benchmark developed pursuant to item (F) of this
        paragraph (4).
            (F) Benchmarks. Benchmarks for each product to be
        procured shall be developed by the procurement
        administrator in consultation with Commission staff,
        the Agency, and the procurement monitor for use in this
        supplemental procurement.
            (G) A plan for implementing contingencies in the
        event of supplier default, Commission rejection of
        results, or any other cause.
        (5) Within 2 business days after opening the sealed
    bids, the procurement administrator shall submit a
    confidential report to the Commission. The report shall
    contain the results of the bidding for each of the products
    along with the procurement administrator's recommendation
    for the acceptance and rejection of bids based on the price
    benchmark criteria and other factors observed in the
    process. The procurement monitor also shall submit a
    confidential report to the Commission within 2 business
    days after opening the sealed bids. The report shall
    contain the procurement monitor's assessment of bidder
    behavior in the process as well as an assessment of the
    procurement administrator's compliance with the
    procurement process and rules. The Commission shall review
    the confidential reports submitted by the procurement
    administrator and procurement monitor and shall accept or
    reject the recommendations of the procurement
    administrator within 2 business days after receipt of the
    reports.
        (6) Within 3 business days after the Commission
    decision approving the results of a procurement event, the
    Agency shall enter into binding contractual arrangements
    with the winning suppliers using the standard form
    contracts.
        (7) The names of the successful bidders and the average
    of the winning bid prices for each contract type and for
    each contract term shall be made available to the public
    within 2 days after the supplemental procurement event. The
    Commission, the procurement monitor, the procurement
    administrator, the Agency, and all participants in the
    procurement process shall maintain the confidentiality of
    all other supplier and bidding information in a manner
    consistent with all applicable laws, rules, regulations,
    and tariffs. Confidential information, including the
    confidential reports submitted by the procurement
    administrator and procurement monitor pursuant to this
    Section, shall not be made publicly available and shall not
    be discoverable by any party in any proceeding, absent a
    compelling demonstration of need, nor shall those reports
    be admissible in any proceeding other than one for law
    enforcement purposes.
        (8) The supplemental procurement provided in this
    subsection (i) shall not be subject to the requirements and
    limitations of subsections (c) and (d) of this Section.
        (9) Expenses incurred in connection with the
    procurement process held pursuant to this Section,
    including, but not limited to, the cost of developing the
    supplemental procurement plan, the procurement
    administrator, procurement monitor, and the cost of the
    retirement of renewable energy credits purchased pursuant
    to the supplemental procurement shall be paid for from the
    Illinois Power Agency Renewable Energy Resources Fund. The
    Agency shall enter into an interagency agreement with the
    Commission to reimburse the Commission for its costs
    associated with the procurement monitor for the
    supplemental procurement process.
(Source: P.A. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10;
96-1437, eff. 8-17-10; 97-616, eff. 10-26-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 6/30/2014