ADMINISTRATIVE CODE

SUBPART A: GENERAL PROVISIONS

Section 455.10 Definitions and Incorporations

Section 455.20 Record Retention, Additional Documentation, and Confidential Information

Section 455.30 Waivers

SUBPART B: RENEWABLE PORTFOLIO STANDARD REQUIREMENTS

Section 455.100 Applicability of Subpart B

Section 455.110 Obligation to Procure Renewable Energy Resources

Section 455.120 Annual Report of Compliance with Renewable Energy Portfolio Standard

Section 455.125 Annual Report of Compliance with the Retail Charge Provisions of the Renewable Energy Portfolio Standard

Section 455.130 Alternative Compliance Payment Requirements

Section 455.140 Procedures for Section 16-115D(h) Determination Based on the Operation of Combined Heat and Power Systems

Section 455.150 Other Commission Proceedings

Section 455.160 ARES Self-Generation Compliance Option

SUBPART C: COMPLIANCE WITH CLEAN COAL STANDARD REQUIREMENTS

Section 455.200 Applicability of Subpart C

Section 455.210 Reporting of Compliance with Clean Coal Standard

SUBPART A: GENERAL PROVISIONS

TITLE 83: PUBLIC UTILITIES
CHAPTER I: ILLINOIS COMMERCE COMMISSION
SUBCHAPTER c: ELECTRIC UTILITIES
PART 455 RENEWABLE PORTFOLIO STANDARD AND CLEAN COAL STANDARD FOR ALTERNATIVE RETAIL ELECTRIC SUPPLIERS AND UTILITIES OPERATING OUTSIDE THEIR SERVICE AREAS
SECTION 455.10 DEFINITIONS AND INCORPORATIONS

Section 455.10 Definitions and Incorporations

The following terms as used in this Part shall have the following meanings:

"ACP" means alternative compliance payments.

"Act" means the Public Utilities Act [220 ILCS 5].

"Agency" means the Illinois Power Agency created by 20 ILCS 3855.

"Alternative retail electric supplier" or "ARES" means every person, cooperative, corporation, municipal corporation, company, association, joint stock company or association, firm, partnership, individual, or other entity, their lessees, trustees, or receivers appointed by any court whatsoever, that offers electric power or energy for sale, lease or in exchange for other value received to one or more retail customers, or that engages in the delivery or furnishing of electric power or energy to such retail customers, notwithstanding the exceptions listed in Section 16-102 of the Act. [220 ILCS 5/16-102]

"Clean coal facility" or "CCF" means an electric generating facility that uses primarily coal as a feedstock and that captures and sequesters carbon dioxide emissions and meets the requirements of Section 1-10 of the IPA Act.[20 ILCS 3855/1-10]

"Clean coal standard" means the various requirements imposed by Sections 16-115(d)(5) and 16-116(c) of the Act on ARES and electric utilities serving retail customers outside their service areas to source electricity from clean coal facilities.

"Commission" means the Illinois Commerce Commission.

"Compliance period" or "compliance year" means each 12-month period beginning June 1 and ending May 31, commencing June 1, 2009, and the comparable 12-month period in each succeeding year.

"Covered amount of energy supplied" or "covered amount" or "CAES" refers to the amount of energy supplied (megawatt-hours) by an RES that is covered by the electric utility's renewable energy resources procurement obligations pursuant to Section 1-75(c)(1)(B) of the IPA Act. For the compliance year ending May 31, 2018, the CAES equals 50% of the energy supplied by the RES to Illinois retail customers during the compliance year. For the compliance year ending May 31, 2019, the CAES equals 75% of the energy supplied by the RES to Illinois retail customers during the compliance year (see Section 16-115D(a)(3.5) of the Act). For the compliance year ending May 31, 2020 and thereafter, the CAES equals 100% of the energy supplied by the RES to Illinois retail customers during the compliance year.

"Delivery services" means those services provided by the electric utility that are necessary in order for the transmission and distribution systems to function so that retail customers located in the electric utility's service area can receive electric power and energy from suppliers other than the electric utility, and shall include, without limitation, standard metering and billing services. [220 ILCS 5/16-102]

"Electric Cooperative" means:

any not-for-profit corporation or other person that owns, controls, operates or manages, directly or indirectly, within this State, any plant, equipment or property for the production, transmission, sale, delivery or furnishing of electricity; and

that has been financed in whole or in part under the federal Rural Electrification Act of 1936 (7 USC 909 et seq.) and its successors or created directly or indirectly by an entity that was financed under that Act. [220 ILCS 30/3.4]

"Electric utility" means a public utility, as defined in Section 3-105 of the Act, that has a franchise, license, permit or right to furnish or sell electricity to retail customers within a service area. [220 ILCS 5/16-102]

"IPA Act" means the Illinois Power Agency Act [20 ILCS 3855].

"M-RETS" means the Midwest Renewable Energy Tracking System or its successor.

"Municipal system" means any public utility owned and operated by any political subdivision or municipal corporation of the State of Illinois, or owned by such an entity and operated by its lessee or agent.

"PJM-GATS" means the PJM Environmental Information System Generation Attribute Tracking System or its successor.

"Renewable energy credit" or "REC" means a tradable credit that represents the environmental attributes of a certain amount of energy produced from a renewable energy resource. [20 ILCS 3855/1-10]

"Renewable energy resources" includes energy and its associated renewable energy credit or renewable energy credits from wind, solar thermal energy, photovoltaic cells and panels, biodiesel, anaerobic digestion, crops and untreated and unadulterated organic waste biomass, tree waste, hydropower that does not involve new construction or significant expansion of hydropower dams, and other alternative sources of environmentally preferable energy. For purposes of the Act, landfill gas produced in the State is considered a renewable energy resource. "Renewable energy resources" does not include the incineration or burning of tires, garbage, general household, institutional, and commercial waste, industrial lunchroom or office waste, landscape waste other than tree waste, railroad crossties, utility poles, or construction or demolition debris, other than untreated and unadulterated waste wood. [20 ILCS 3855/1-10] For compliance years that ended on or before May 31, 2017, renewable energy resources also include energy and its associated renewable energy credit or renewable energy credits from other alternative sources of environmentally preferable energy.

"Renewable portfolio standard" or "RPS" means the various requirements imposed by Section 16-115D of the Act on ARES and electric utilities serving retail customers outside their service area.

"Retail customer" has the same meaning as in Section 16-102 of the Act.

"Retail electric supplier" or "RES" includes both ARES and electric utilities serving or seeking to serve retail customers outside their service area.

"Self-Generation Certification" means the Renewable Energy Facility Self-Generation Certification required by Section 455.160.

"Service area" means the geographic area within which an electric utility was lawfully entitled to provide electric power and energy to retail customers on or before December 16, 1997 and includes the location of any retail customer to which the electric utility was lawfully providing electric utility services on that date. [220 ILCS 5/16-102]

"Supplied", in relation to a quantity of energy, means energy obtained by an RES and delivered to a retail customer by an electric utility providing delivery services to the retail customer, with the quantity of energy measured at the customer meter; provided, however, that only with respect to determining whether a combined heat and power system in Illinois supplies electricity primarily to or for the benefit of facilities identified in Section 16-115 D(h) of the Act. "Supplied" also includes energy generated by a combined heat power system used at those facilities, regardless of whether it passes through the customer meter, provided that only with respect to determining the requirements of Section 16-115D of the Act for electric utilities serving retail customers outside their service area, "supplied" includes energy obtained by the utility and delivered to retail customers outside of the utility's service area.

"Uncovered amount of energy supplied" or "uncovered amount" or "UAES" refers to the amount of energy supplied (in megawatt-hours (MWh)) by an RES that is not covered by the electric utility's renewable energy resources procurement obligations pursuant to Section 1-75(c)(1)(B) of the IPA Act. For the compliance year ending May 31, 2018, the UAES equals 50% of the energy supplied by the RES to Illinois retail customers during the compliance year. For the compliance year ending May 31, 2019, the UAES equals 25% of the energy supplied by the RES to Illinois retail customers during the compliance year. For compliance years ending May 31, 2020 and after, the UAES equals 0% of the energy supplied by the RES to Illinois retail customers during the compliance year.

(Source: Amended at 41 Ill. Reg. 13580, effective October 26, 2017)

Section 455.20 Record Retention, Additional Documentation, and Confidential Information

a) In addition to any other requirements of this Part or of any other applicable law, a RES shall maintain original records of all contracts and bills associated with Illinois retail customers who received electricity for at least 36 months beyond the end of the compliance period during which the electricity was supplied. All these records and any other documentation or information regarding the compliance by a RES with the renewable portfolio standard and clean coal standard shall be made available to the Commission or its Staff upon written request. The requirement to maintain original records pursuant to this Section may be satisfied by the retention of electronic rather than paper records, provided these are electronic business records that would otherwise be admissible under Illinois law.

b) If information contained in any report filed pursuant to this Part or provided to the Commission or Staff upon written request contains or reflects commercially or financially sensitive information or trade secrets, the RES may file that information with the Commission on a confidential basis. To be filed confidentially, the information shall be accompanied by an affidavit that sets forth both the reasons for the confidentiality and a public synopsis of the information as required by Section 16-115D(e) of the Act. If a report contains information filed on a confidential basis, the RES shall file both a "confidential" and a "public" version of the report and attached documentation, with all confidential information marked "Confidential". Commission Staff is authorized to publicly disclose documentation and information provided pursuant to this Part without a confidential designation pursuant to Section 5-108 of the Act.

Section 455.30 Waivers

a) A RES may request a waiver of any of the provisions of this Part. A request for a waiver shall be made by petition. The petition shall be verified by a person or persons having knowledge of the facts and shall set forth a full statement of the reasons for the requested waiver. A waiver shall not be granted if the provision from which a waiver is sought is statutorily mandated, or if the request for a waiver is otherwise contrary to law.

b) The burden of proof in any request for a waiver shall be upon the RES requesting the waiver. A request for waiver shall be granted upon good cause being shown by the RES. While other factors may be considered, and shall be mentioned if considered, the following factors shall be considered in determining whether good cause exists for the requested waiver:

1) Whether the rule from which the waiver is granted would, as applied to the particular case, be unreasonable or unnecessarily burdensome.

2) Whether the granting of a waiver would provide a competitive advantage to the requesting party.

3) If the waiver relates to an information filing requirement, whether other information the RES would provide if the waiver is granted permits an assessment of compliance with applicable requirements in a complete and timely manner.

4) The expense to the RES in providing the information or otherwise complying with the provision that is the subject of the waiver request.

SUBPART B: RENEWABLE PORTFOLIO STANDARD REQUIREMENTS

Section 455.100 Applicability of Subpart B

This Subpart applies to RES and electric utilities, as applicable. This Subpart does not apply to electric cooperatives or municipal systems making an election under Section 17-300 of the Act to become an ARES or, except as provided in Section 455.140, to an ARES that is exempt from the requirements of Section 16-115D of the Act.

(Source: Amended at 41 Ill. Reg. 13580, effective October 26, 2017)

ADMINISTRATIVE CODE

Section 455.110 Obligation to Procure Renewable Energy Resources

a) Each RES shall procure cost-effective renewable energy resources in accordance with the requirements of Section 16-115D of the Act.

b) For an RES, the obligation to procure renewable energy resources is expressed in units of electricity (megawatt-hours) and is measured as a percentage of the actual amount of metered electricity supplied to the RES' Illinois retail customers during each compliance year, pursuant to contracts executed or extended after March 15, 2009 (see 220 ILCS 5/16-115D(a)(2), (a)(6), and (g)).

c) For compliance years ending on or before May 31, 2017, the minimum quantity of renewable energy resources to be procured for each compliance year shall be calculated based on the annual percentages set forth in Section 1-75(c)(1) of the IPA Act (see 220 ILCS 5/16-115D(a)(3)). For compliance years ending on or before May 31, 2017, renewable energy resources also includes energy and its associated renewable energy credit or renewable energy credits from other alternative sources of environmentally preferable energy. For the compliance year ending on May 31, 2018, the minimum quantity of renewable energy resources to be procured shall be equal to 13% of the uncovered amount of energy supplied during the compliance year. For the compliance year ending on May 31, 2019, the minimum quantity of renewable energy resources to be procured shall be equal to 14.5% of the uncovered amount of energy supplied during the compliance year. For compliance years ending on or after May 31, 2020, RES do not have an obligation pursuant to Section 16-115D of the Act to procure renewable energy resources. For an ARES that meets the requirements of Section 1-75(c)(1)(H) of the IPA Act, the ARES obligation to purchase renewable energy resources shall be reduced in accordance with Section 455.160.

d) For compliance years ending on or before May 31, 2017, at least 60% and at least 6% of the RES obligation to procure renewable energy resources shall come from wind and solar photovoltaic generation, respectively. For compliance years ending on or before May 31, 2017, renewable energy resources also includes energy and its associated renewable energy credit or renewable energy credits from other alternative sources of environmentally preferable energy. For compliance years ending on May 31, 2018 and May 31, 2019, at least 32% of the RES obligation to procure renewable energy resources shall come from wind or photovoltaic generation.

e) For compliance years ending on or before May 31, 2017, at least 50% of the obligation to procure renewable energy resources must be satisfied by making alternative compliance payments, and the balance of the obligation to procure renewable energy resources may be satisfied by generating electricity using renewable energy resources, purchasing electricity generated using renewable energy resources, purchasing renewable energy credits from renewable energy resources, or making alternative compliance payments (see Section 16-115D(b)(1) and (3) of the Act). For compliance years ending on or before May 31, 2017, renewable energy resources also includes energy and its associated renewable energy credit or renewable energy credits from other alternative sources of environmentally preferable energy. For compliance years ending on May 31, 2018 and May 31, 2019, the obligation to procure renewable energy resources may be satisfied by generating electricity using renewable energy resources, purchasing electricity generated using renewable energy resources, purchasing renewable energy credits from renewable energy resources, making alternative compliance payments, or a combination thereof (see Section 16-115D(b)(2) and (3) of the Act).

f) Alternative compliance payment rate. The "maximum alternative compliance payment rate" for each compliance year shall be equal to the maximum allowable annual estimated average net increase due to the costs of the utility's purchase of renewable energy resources included in the amounts paid by eligible retail customers in connection with electric service, as described in Section 1-75(c)(2) of the IPA Act for the compliance period, as established in the approved procurement plan. The "actual alternative compliance payment rate" will be equal to the lower of the maximum alternative compliance payment rate or the total amount of dollars the utility actually spent on renewable energy resources for the compliance period divided by the forecasted load of retail customers for which the utility is procuring renewable energy resources in a given compliance year, at the customers' meters, as previously established in the Commission-approved procurement plan for that compliance year. (See Section 16-115D(d)(1) of the Act.)

g) To the extent to which a RES seeks to meet its obligation to procure renewable energy resources by generating electricity using renewable energy resources, purchasing electricity generated using renewable energy resources, or purchasing renewable energy credits, those resources or the resources generating the renewable energy credits must be located within Illinois, Wisconsin, Indiana, Iowa, Kentucky, Michigan or Missouri, or within portions of the PJM and MISO footprint in the United States (see 220 ILCS 5/16-115D(a)(4)). Renewable energy credits used toward compliance for a compliance year must be generated during that compliance year or during the two previous compliance years. (See 220 ILCS 5/16-115D(c)(1).) Under no circumstances shall renewable energy credits from other alternative sources of environmentally preferable energy be used toward compliance for a compliance year ending after May 31, 2017.

h) For a compliance year, an RES' obligation to procure renewable energy resources by generating electricity using renewable energy resources, purchasing electricity generated using renewable energy resources, or purchasing renewable energy credits from renewable energy resources is determined according to the following formula:

RR_u= [Applicable Supply_u – (Payment_u/ACPRate_u)] x Requirement

where:

RR_u is the RES' obligation to procure renewable energy resources by generating electricity using renewable energy resources, purchasing electricity generated using renewable energy resources, or purchasing renewable energy credits from renewable energy resources (in megawatt-hours) in utility service area u;

Applicable Supply_u is, for compliance years ending on or before May 31, 2017, the amount of metered electricity supplied to the RES' Illinois retail customers in utility service area u during the compliance year (in megawatt-hours) and is, for compliance years ending on May 31, 2018 and May 31, 2019, the uncovered amount of energy supplied to the RES' Illinois retail customers in utility service area u during the compliance year (in megawatt-hours).

Payment_u is the amount of the alternative compliance payment (in $) made by the RES in utility service area u, including, for compliance years ending on or before May 31, 2017, mandatory ACP payments made in compliance with subsection (e);

ACPRate_u is the actual alternative compliance payment rate (in $/MWh) in utility service area u;

Requirement is the annual renewable requirement percentages specified or referenced in subsection (c) (expressed in decimal form).

i) Alternative compliance payments may be used to reduce the wind and/or photovoltaic requirements identified in subsection (d).

(Source: Amended at 41 Ill. Reg. 13580, effective October 26, 2017)

Section 455.120 Annual Report of Compliance with Renewable Energy Portfolio Standard

By September 1, 2010, and by September 1 of each succeeding year through September 1, 2019, each RES shall file with the Chief Clerk of the Commission a compliance report for the compliance year ending May 31 of that year, showing compliance with the renewable portfolio standard of Section 16-115D of the Act for the applicable compliance period. The report shall be titled "Annual Report of Compliance with Renewable Portfolio Standard". By October 1 of each year through October 1, 2019, an RES may file with the Chief Clerk of the Commission an updated compliance report based on finalized settlements with MISO.

a) At a minimum, the compliance report shall provide, contain or show, for the applicable compliance year, and for each utility service area within which the RES serves Illinois retail customers, the following:

1) The total quantity of metered electricity supplied to Illinois retail customers by the RES. The report shall show this information, in megawatt-hours, by service area for each electric utility that is subject to Section 1-75(c) of the IPA Act;

2) The quantity of metered electricity supplied to Illinois retail customers by the RES, pursuant to contracts executed or extended after March 15, 2009. The report shall show this information, by utility service territory, in megawatt-hours;

3) The quantity of RECs (in megawatt-hours), whether directly purchased or arising from generating electricity or purchasing electricity generated from renewable energy resources, that were retired for purposes of meeting the requirements of the renewable portfolio standard for the compliance period in each utility service area. The report shall also show the quantity and percentage of these RECs that were derived from each renewable energy source type. All REC quantities reported shall be categorized by regional REC tracking system: PJM-GATS and M-RETS; and

4) The alternative compliance payments that were made for purposes of meeting the requirements of the renewable portfolio standard for the compliance period by utility service area.

b) Documentation requirements for compliance methods other than alternative compliance payments

1) If a RES seeks to comply with the RPS by generating electricity using renewable energy resources, purchasing electricity generated using renewable energy resources, or purchasing renewable energy credits, the only acceptable proof of compliance shall be in the form of verifiable documentation from PJM-GATS or M-RETS of the retirement of renewable energy credits associated with the production of electricity using renewable energy resources in accordance with Section 16-115D(a)(4) of the Act. The RES shall clearly indicate the PJM-GATS and M-RETS account names and sub-account names that are included in the documentation.

2) Documentation from PJM-GATS and M-RETS shall show, at a minimum:

A) the generating facility associated with the RECs;

B) the location of each of the generating facilities associated with the RECs;

C) the quantity of RECs associated with each of those generating facilities and the month and year that the electricity associated with the RECs was generated;

D) the retirement status of the RECs; and

E) the State RPS and compliance period for which the RECs were retired.

3) If PJM-GATS and M-RETS only allow account holders to designate calendar year compliance periods, the RES shall designate the year at the end point of the Illinois compliance period. For example, for Illinois' June 2016-May 2017 compliance period, the RES shall designate 2017 if the option to designate 2016-2017 is not available.

4) For compliance periods ending on or after May 31, 2018, a certification that RECs used for compliance for the compliance period were not produced by facilities whose costs were being recovered through rates regulated by any state or states on or after January 1, 2017.

A) If the generating facility responsible for the RECs is listed by a recognized REC tracking system as an eligible supplier of RECs, the certification shall state the generating facility's presence on the REC tracking system's list is the basis for certification under this subsection (b)(4).

B) If the generating facility responsible for the RECs is not listed by a recognized REC tracking system as an eligible supplier of RECs, the RES shall provide other suitable documentation demonstrating the eligibility of the RECs under this subsection (b)(4) for purposes of supporting the IPA or ICC Staff's determination of facility eligibility. The certification required under this subsection (b)(4) shall also include the statement by an RES executive officer that the REC generating facility has been investigated and, to the best of the officer's belief, the RECs used for compliance were not produced by facilities whose costs were being recovered through rates regulated by any state or states on or after January 1, 2017. This certification shall only be considered sufficient for compliance if, after review, the generating facility is deemed IL ARES RPS compliant by the IPA or ICC Staff.

C) All RES are encouraged to submit the generating facilities that they intend to use to comply with the Illinois RPS to the IPA and ICC Staff well in advance of the September 1 deadline for filing compliance reports. In situations in which the IPA, ICC Staff and an RES disagree about the eligibility of specific generating facilities under this subsection(b)(4)(C), the RES shall file a petition with the Commission seeking a formal designation of the generating facility or facilities in question.

c) If metered electricity supplied to Illinois retail customers by an RES is supplied during the compliance period pursuant to contracts that were not executed or extended after March 15, 2009, the RES shall provide a list, by utility service area, of those Illinois retail customers who received electricity that was not supplied pursuant to contracts executed or extended after March 15, 2009. The list shall include the following information: account numbers and the quantity of electricity (in megawatt-hours) supplied to the account numbers during the compliance period that was not supplied pursuant to contracts executed or extended after March 15, 2009.

d) If the Commission has entered an order pursuant to Section 16-115D(h) of the Act determining that the provisions of Section 16-115D and Section 16-115(d) of the Act relating to procurement of renewable energy resources do not apply to a RES, the RES shall include in its annual compliance report:

1) The docket number of the Commission proceeding in which a Commission order determined that the provisions of Section 16-115D and Section 16-115(d) of the Act relating to procurement of renewable energy resources do not apply to the RES;

2) a statement indicating whether the conditions or circumstances giving rise to the Commission's determination continued to apply to the RES during the compliance year; and

3) the further demonstrations identified in the Commission's order of compliance with the criteria identified in Section 16-115D(h) of the Act.

e) All reports filed or provided under this Section shall be verified by an executive officer of the RES having knowledge of the facts before either a notary public or other officer authorized to administer oaths.

(Source: Amended at 41 Ill. Reg. 13580, effective October 26, 2017)

ADMINISTRATIVE CODE

Section 455.125 Annual Report of Compliance with the Retail Charge Provisions of the Renewable Energy Portfolio Standard

By September 1, 2020, and by September 1 of each succeeding year, each RES shall file with the Chief Clerk of the Commission a compliance report for the compliance year ending May 31 of that year, certifying that the RES did not recover from its retail customers through its rates or charges the costs for any renewable energy resources procured or otherwise acquired by any entity in compliance with the requirements of the Act or the IPA Act, with the exception, if applicable, of renewable energy resources that meet the requirements of Section 1-75(c)(3)(H) of the IPA Act. To the extent the RES receives a credit from a utility (see Section 455.160(c)), the RES shall certify that the credit from the utility was appropriately credited to the RES' customers. The report shall be titled "Annual Section 16-115D(i) Compliance Report". All reports filed or provided under this Section shall be verified by an executive officer of the RES having knowledge of the facts before either a notary public or other officer authorized to administer oaths.

(Source: Added at 41 Ill. Reg. 13580, effective October 26, 2017)

ADMINISTRATIVE CODE

Section 455.130 Alternative Compliance Payment Requirements

a) Alternative compliance payments may, subject to the requirements and limitations in Section 455.110, be used to meet RES renewable portfolio standard requirements.

b) The dollar amount of alternative compliance payments shall be calculated using the applicable alternative compliance payment rates approved by the Commission.

c) Alternative compliance payments shall be made by September 1, 2010 for the compliance period of June 1, 2009 to May 31, 2010, and by September 1 of each succeeding year for each subsequent compliance period.

d) Submission of Compliance Payments

1) Alternative compliance payments for the compliance periods ending on or before May 31, 2016 shall be made by check, payable to "Illinois Commerce Commission", and shall be delivered to the following address:

Illinois Commerce Commission

Administrative Services Division

Attn: Manager of the Revenues Section

Re: Illinois Power Agency Renewable Energy Resources Fund

527 East Capitol Avenue

Springfield IL 62701

2) Alternative compliance payments shall be deemed made only when actually received at the office of the Commission at the specified address. Payment by a check that does not clear after being deposited by the Commission shall be deemed to not have been made.

3) Alternative compliance payments for the compliance periods ending on or after May 31, 2017, shall be submitted to each electric utility within whose service area the RES has provided energy to retail customers in a manner specified in electric utility tariffs in effect when the payment is made. If an electric utility does not have a tariff governing the alternative compliance payments in effect at the time alternative compliance payments for the compliance period are due, the RES is still obligated to make payment for the compliance period but the RES shall hold the payment until such time as the electric utility's tariff goes into effect. Alternative compliance payments shall be deemed made only when actually received by the electric utility. Payment by a check that does not clear after being deposited by the electric utility shall be deemed not to have been made.

e) Within one business day after the submission of any alternative compliance payments, whether submitted to the Commission or an electric utility, the RES shall send a letter to the Chief Clerk of the Commission containing the following information:

1) "Re: 83 Ill. Adm. Code 455.130";

2) Name and address of RES;

3) The RES' FEIN;

4) Name and telephone number of person writing the letter;

5) Dollar amounts of the alternative compliance payments;

6) The payee for each payment;

7) Compliance period for which the payment is being made (e.g., June 1, 2009 through May 31, 2010); and

8) An indication whether the payment is intended to satisfy the balance of alternative compliance payment requirements for the compliance period or whether more payments may be forthcoming.

f) The Commission shall deposit all amounts received for compliance periods ending on or before May 31, 2016 into the Illinois Power Agency Renewable Energy Resources Fund, a special fund in the State treasury administered by the Illinois Power Agency.

g) The Commission shall carry forward to subsequent compliance periods the dollar amount of any compliance payments recognized by the Commission to be in excess of requirements, unless and to the extent to which the RES petitions for and is granted permission to apply for a refund.

h) For purposes of ensuring RES compliance with this Part, electric utilities shall submit reports to the Commission and the Illinois Power Agency in years 2017, 2018 and 2019. These reports shall contain the following information:

1) On or before September 1: Metered usage data by RES; and

2) On or before September 30: The amount and date of alternative compliance payments made by each RES to the utility and any refunds made by the utility to an RES pursuant to Section 455.150(c).

(Source: Amended at 41 Ill. Reg. 13580, effective October 26, 2017)

Section 455.140 Procedures for Section 16-115D(h) Determination Based on the Operation of Combined Heat and Power Systems

a) An ARES certified only to serve facilities owned by itself or its affiliate, and/or facilities electrically integrated with the electrical system of facilities owned by itself or its affiliate, and/or facilities adjacent to a site on which a combined heat and power system is located may seek a determination that it is exempt from application of Section 16-115D and Section 16-115(d) of the Act pursuant to Section 16-115D(h) of the Act. An ARES whose certificate is not so limited and grants it authority to serve retail customers generally is not eligible for the exemption pursuant to Section 16-115D(h) of the Act. An ARES claiming that Section 16-115D and Section 16-115(d) of the Act do not apply to it pursuant to Section 16-115D(h) of the Act must first request a determination that it is exempt under Section 16-115D(h) of the Act either in its original application for certification as an ARES or subsequently in a separate petition to the Commission filed pursuant to the Commission's Rules of Practice (83 Ill. Adm. Code 200) ("Section 16-115D(h) Request") and receive an order from the Commission granting its request for this determination. If the Commission enters an order granting a Section 16-115D(h) Request, the ARES shall start or continue to file annual reports under this Part and must certify and demonstrate in each annual report that the conditions giving rise to the exemption from application of the provisions of Section 16-115D and Section 16-115(d) of the Act relating to procurement of renewable energy resources continue to apply or exist in each compliance year.

b) To obtain a determination that the provisions of Section 16-115D and Section 16-115(d) of the Act relating to procurement of renewable energy resources do not apply to it pursuant to Section 16-115D(h) of the Act, an ARES shall demonstrate, at a minimum, the following:

1) that it operates a combined heat and power system in Illinois or that it has a corporate affiliate that operates a combined heat and power system in this State;

2) that this combined heat and power system supplies electricity primarily to or for the benefit of:

A) facilities owned by the ARES, its subsidiary, or other corporate affiliate;

B) facilities electrically integrated with the electrical system of facilities owned by the ARES, its subsidiary, or other corporate affiliate; or

C) facilities that are adjacent to the site on which the combined heat and power system is located; and

3) that it is certified, or requesting certification, only to serve facilities owned by itself or its affiliate, and/or facilities adjacent to a site or which a combined heat and power system is located.

c) For purposes of this Part, a combined heat and power system means a cogeneration facility, as defined in 18 CFR 292.202, that meets the criteria for qualifying cogeneration facilities specified in 18 CFR 292.205. These incorporations of federal standards are as of June 1, 2010. No later amendment or edition is included.

d) A Section 16-115D(h) Request shall include, at a minimum, the following:

1) A description of the combined heat and power system or systems in Illinois relied upon pursuant to Section 16-115D(h) for the exemption from application of the provisions of Section 16-115D and Section 16-115(d) of the Act.

2) For each system identified in subsection (d)(1), documentation of compliance with the information collection requirements established by the Federal Energy Regulatory Commission (FERC) in FERC Form No. 556, or any successor information collection requirements established by FERC, to obtain and maintain status as a qualifying facility. (See 18 CFR 131.80 as of June 1, 2010. No later amendment or edition is included.) This documentation shall include a copy of all applications for self-certification, self-recertification, certification, and recertification, and their associated FERC docket numbers. In the alternative, a petitioner may provide this documentation with the testimony submitted with its petition, but shall indicate in the petition that the documentation is attached to its testimony. In the further alternative, if designation of the subject combined heat and power system as a qualifying facility has not been sought from the FERC, petitioner may present information and documentation demonstrating that the system meets the criteria for a qualifying facility specified in 18 CFR 292.205 in its testimony. (See 18 CFR 292.205 as of June 1, 2010. No amendment or later addition is included.)

3) For each combined heat and power system identified in subsection (d)(1), a proposed method to demonstrate that, for the initial and each subsequent compliance period, the petitioner or its corporate affiliate operated the system and that the system supplied electricity primarily to or for the benefit of:

A) facilities owned by the petitioner, its subsidiary, or other corporate affiliate;

B) facilities electrically integrated with the electrical system of facilities owned by the petitioner, its subsidiary, or other corporate affiliate; or

C) facilities that are adjacent to the site on which the combined heat and power system is located.

e) Direct testimony shall be filed at the time the petition is filed. At a minimum, this testimony shall demonstrate that, for the initial compliance period over which the exemption is sought, using, to the extent practicable, the methods provided in subsection (d)(3), the petitioner or its corporate affiliate operated (or will operate) the system and that the system supplied (or will supply) electricity primarily to or for the benefit of:

1) facilities owned by the petitioner, its subsidiary, or other corporate affiliate;

2) facilities electrically integrated with the electrical system of facilities owned by the petitioner, its subsidiary, or other corporate affiliate; or

3) facilities that are adjacent to the site on which the combined heat and power system is located.

f) The Commission shall specify the method or methods it adopted for making the demonstrations described in subsection (d)(3), and annual reports shall utilize the same method or methods to make these demonstrations for future compliance periods.

g) For any subsequent compliance period, the ARES or shall include within the annual report required by Section 455.120 information and documentation sufficient to make the demonstrations described in subsection (d)(3) using the methods adopted by the Commission pursuant to subsection (f) for the combined heat and power systems found by the Commission to meet the criteria listed in Section 16-115D(h) of the Act for the initial compliance period.

h) In the case of any Section 16-115D(h) Request submitted by separate petition filed on or before June 15, 2010, the Commission shall enter an order granting or denying the request no more than 60 days after the petition is filed. If the Commission enters an order granting a Section 16-115D(h) Request, the provisions of Section 16-115D and Section 16-115(d) of the Act relating to procurement of renewable energy resources shall not apply to the ARES pursuant to Section 16-115D(h) of the Act.

i) Unless otherwise ordered by the Commission, the order granting or denying any petition filed under this Section 455.140 shall be entered within 90 days after the petition is filed.

Section 455.150 Other Commission Proceedings

a) After receipt of an annual report required by Section 455.120 or the due date for these reports, whichever occurs first, the Commission may initiate, on its own motion or, in its discretion, upon the petition of an interested party, and for each RES, a docketed proceeding to investigate whether the RES or utility has complied with the requirements of Section 16-115D of the Act and this Subpart, to determine the amount by which alternative compliance payments have been insufficient or in excess of requirements, and, if applicable, to determine if the demonstrations described in Section 455.140(d)(3) have been made. Pursuant to Section 16-115D(f) of the Act, the RES shall have the burden of proof in this proceeding.

b) An RES may petition the Commission for permission to apply to the Illinois Power Agency for a refund of compliance payments for a compliance period ending on or before May 31, 2016, recognized by the Commission to be in excess of requirements. The Commission will coordinate with the Illinois Power Agency in developing a process and procedure to implement this subsection (b).

c) An RES may petition the Commission for permission to apply to an electric utility for a refund of compliance payments for a compliance period ending on May 31, 2017, May 31, 2018, or May 31, 2019 recognized by the Commission to be in excess of requirements. The RES shall serve notice of the petition upon the electric utility. After notice and hearing, the Commission shall issue an order granting or denying the petition, and the order shall be served on the RES and electric utility. No later than 60 days after the date on which the Commission issues an order granting the RES' petition for a refund, the electric utility shall issue a refund or provide a credit to the RES. The electric utility shall deduct the amount of the refund or credit from the compliance payments remitted to the electric utility pursuant to Section 455.130. Electric utilities may file tariff sheets to further define the process of RES applying for and receiving the refunds.

(Source: Amended at 41 Ill. Reg. 13580, effective October 26, 2017)

Section 455.160 ARES Self-Generation Compliance Option

a) If an ARES meets the requirements of Section 1-75(c)(1)(H) of the IPA Act and intends to supply its retail customers with renewable energy credits from a facility or facilities meeting the requirements of that Section of the Act, the ARES must submit an information filing with the Chief Clerk of the Commission titled "Code Part 455.160 Renewable Energy Facility Self-Generation Certification" by July 17, 2017 that shall, at a minimum, for each such facility:

1) identify the electric generating facility generating renewable energy resources;

2) include a certification that, as of December 31, 2015, the ARES or its predecessor, which must have been an ARES on December 31, 2015, owned the generating facility;

3) include a certification that the facility generates renewable energy resources; and

4) include a certification that the generating facility is not powered by wind or photovoltaics.

b) If an ARES has submitted an information filing under subsection (a) and elects to supply its retail customers with renewable energy credits from facilities identified in the information filing under subsection (a), the ARES must submit by February 28 of the year preceding the applicable compliance year or by June 16, 2017, whichever is later, a notification to the Chief Clerk of the Commission of its election titled "Code Part 455.160 Renewable Energy Facility Self-Generation Annual Election" that shall, at a minimum:

1) identify the amount of renewable energy credits to be supplied to each utility's retail customers by the ARES from each facility identified in the Self-Generation Certification;

2) include a calculation demonstrating that the annual election to supply its retail customers with renewable energy credits from facilities identified in the Self-Generation Certification adheres to the following limitations:

A) for the compliance year ending May 31, 2019, the maximum amount of renewable energy credits to be supplied by an ARES from facilities identified in the Self-Generation Certification shall be 68% multiplied by 25% multiplied by 14.5% multiplied by the amount of metered electricity (megawatt-hours) delivered by the ARES to Illinois retail customers during the compliance year ending May 31, 2016.

B) for the compliance year ending May 31, 2020 and each year thereafter, the maximum amount of renewable energy credits to be supplied by an ARES from facilities identified in the Self-Generation Certification shall be 68% multiplied by 50% multiplied by 16% multiplied by the amount of metered electricity (megawatt-hours) delivered by the alternative retail electric supplier to Illinois retail customers during the compliance year ending May 31, 2016, provided that the 16% value shall increase by 1.5% each compliance year after the compliance year ending May 31, 2020 to 25% by the compliance year beginning June 1, 2025, and thereafter the 25% value shall apply to each compliance year; and

3) include a certification that none of the facilites identified in the Self-Generation Certification are facilities whose costs were being recovered through rates regulated by any state or states on or after January 1, 2017. This certification shall be supported by suitable documentation demonstrating the eligibility of the facilities under this subsection (b).

c) This subsection (c) applies to compliance years when one or more ARES meets the requirements of Section 1-75(c)(1)(H) of the IPA Act and at least one ARES elects to supply its retail customers with renewable energy credits from a facility or facilities meeting the requirements of that statute. Renewable energy credits meeting these requirements are, for purposes of this subsection (c), referred to as eligible renewable energy credits. On or before April 1 of each year, the IPA will annually publish a report on its website that identifies the aggregate amount of eligible renewable energy credits supplied by ARES under this Section.

1) The ARES target renewable energy credit quantity for a compliance year shall be equal to the sum of the covered and uncovered amount of energy supplied by the ARES in a utility service area during the compliance year multiplied by the target percentage. For the compliance year ending May 31, 2019, the target is 14.5%. For the compliance years after May 31, 2019 the 14.5% target shall increase by 1.5% each compliance year thereafter to 25% by the compliance year ending on May 31, 2026, and thereafter the 25% target shall apply to each compliance year. The target renewable energy credit quantity is expressed in units of electricity (megawatt-hours) and is measured as a percentage of the actual amount of metered electricity supplied to the ARES' Illinois retail customers in the utility service area pursuant to contracts executed or extended after March 15, 2009.

2) The Illinois target renewable energy credit quantity for a compliance year shall be equal to the sum of the covered and uncovered amount of energy supplied by RES and utilities in a utility service area during the immediately preceding compliance year multiplied by the target percentage. For the compliance year ending May 31, 2019, the target shall be 14.5%. For the compliance years after May 31, 2019, the 14.5% target shall increase by 1.5% each compliance year thereafter to 25% by the compliance year ending on May 31, 2026, and thereafter the 25% target shall apply to each compliance year. The Illinois target renewable credit quantity is expressed in units of electricity (megawatt-hours) and is measured as a percentage of the actual amount of metered electricity supplied to the Illinois retail customers in a utility service area pursuant to contracts executed or extended after March 15, 2009.

3) For the compliance year ending May 31, 2019, the maximum amount of eligible renewable energy credits to be provided by an ARES in a utility service area shall be 68% multiplied by 25% multiplied by 14.5% times the amount of the sum of the covered and uncovered amount of energy supplied by the ARES in a utility service area during the compliance year ending May 31, 2016. For the compliance year ending May 31, 2020, the maximum amount of eligible renewable energy credits to be provided by an ARES in a utility service area shall be 68% multiplied by 50% multiplied by 16% times the amount of the sum of the covered and uncovered amount of energy supplied by the ARES in a utility service area during the compliance year ending May 31, 2016. For compliance periods ending on or after May 31, 2021, the maximum amount of eligible renewable energy credits to be provided by an ARES in a utility service area shall be 68% multiplied by 50% multiplied by 17.5% times the amount of the sum of the covered and uncovered amount of energy supplied by the ARES in a utility service area during the compliance year ending May 31, 2016, provided that the 17.5% shall increase by 1.5% each compliance period thereafter to 25% by the compliance year ending on May 31, 2026; thereafter, the 25% shall apply to each compliance year.

4) For a compliance year, the total amount of eligible renewable energy credits provided by all ARES shall not exceed 9% of the Illinois target renewable energy credit quantity in a utility service area. If the total amount of eligible renewable energy credits provided by ARES exceeds 9% of the Illinois target renewable energy credit quantity in a utility service area for a compliance year, then each amount of eligible renewable energy credits provided by each ARES will be reduced on a pro rata basis so that the total amount of eligible renewable energy credits provided by all ARES equals 9% of the Illinois target renewable energy credit quantity in a utility service area.

5) For compliance years ending on or after May 31, 2019, the charges applicable to the ARES customers for the compliance year and that are collected by the electric utility under Section 1-75(c)(6) of the IPA Act shall be reduced by the ratio of the quantity of eligible renewable energy credits provided by the ARES in a utility service area compared to the ARES target renewable energy credit quantity in a utility service area for the compliance period. If the utility does not provide the reduction in the renewable energy charge directly to the ARES customers, then the utility shall calculate and remit the resulting credits to the applicable ARES within 30 days after the close of the compliance year. All funds refunded from the utilities shall be credited to the ARES customers, as appropriate.

6) For compliance years ending on or after May 31, 2019, the minimum quantity of renewable energy resources to be procured for the ARES customers for the compliance year, as specified in Section 455.110(c) shall be reduced in a utility service area by the ratio of the quantity of eligible renewable energy credits provided by the ARES compared to the ARES target renewable energy credit quantity for the compliance year.

(Source: Added at 41 Ill. Reg. 13580, effective October 26, 2017)

SUBPART C: COMPLIANCE WITH CLEAN COAL STANDARD REQUIREMENTS

Section 455.200 Applicability of Subpart C

This Subpart does not apply to electric cooperatives or municipal systems making an election under Section 17-300 of the Act to become an ARES.

Section 455.210 Reporting of Compliance with Clean Coal Standard

a) Within 90 days after approval by the Illinois General Assembly of the initial clean coal facility, each RES shall enter into a sourcing agreement with the initial clean coal facility consistent with the provisions of Section 16-115(d)(5) of the Act. Within 30 days after entering into this sourcing agreement, each RES shall file with the Chief Clerk of the Commission a report confirming that it has entered into the sourcing agreement and attaching a signed copy of the sourcing agreement.

b) By the earliest September 1 following commercial operation of the initial clean coal facility, and by September 1 of each succeeding year, each RES that is required under the Act or the IPA Act to enter into a sourcing agreement with the initial clean coal facility shall file with the Chief Clerk of the Commission a report showing the amount of energy purchased (or financially settled, if the sourcing agreement is executed as a contract for differences) from the initial clean coal facility by the RES, by month, during the most recent compliance year. The report shall also show how these amounts were consistent with the requirements of Section 16-115(d)(5) of the Act. Each report shall be accompanied by documentation from the initial clean coal facility verifying the amount of energy purchased.

c) To enable the Commission to monitor progress toward the State's goal that, by January 1, 2025, 25% of the electricity used in the State shall be generated by cost-effective clean coal facilities, beginning no later than September 1, 2010, and by September 1 of each subsequent year, each RES purchasing energy from clean coal facilities other than the initial clean coal facility during the compliance year shall file with the Chief Clerk of the Commission a report showing the amount of energy purchased by the RES from clean coal facilities other than the initial clean coal facility, by month, during the most recent compliance year. Each report shall be accompanied by documentation from the clean coal facility verifying the amount of energy purchased. If the RES did not purchase any energy from clean coal facilities other than the initial clean coal facility during the compliance year, a report need not be filed with the Chief Clerk for that compliance year.

d) All reports filed or provided under this Section shall be verified by an executive officer of the RES having knowledge of the facts before either a notary public or other officer authorized to administer oaths.

(Source: Amended at 43 Ill. Reg. 9117, effective August 12, 2019)