Sen. Emil Jones, III

Filed: 1/10/2021

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 156

2    AMENDMENT NO. ______. Amend House Bill 156 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-75 as follows:
 
6    (20 ILCS 3855/1-75)
7    Sec. 1-75. Planning and Procurement Bureau. The Planning
8and Procurement Bureau has the following duties and
9responsibilities:
10    (a) The Planning and Procurement Bureau shall each year,
11beginning in 2008, develop procurement plans and conduct
12competitive procurement processes in accordance with the
13requirements of Section 16-111.5 of the Public Utilities Act
14for the eligible retail customers of electric utilities that on
15December 31, 2005 provided electric service to at least 100,000
16customers in Illinois. Beginning with the delivery year

 

 

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1commencing on June 1, 2017, the Planning and Procurement Bureau
2shall develop plans and processes for the procurement of zero
3emission credits from zero emission facilities in accordance
4with the requirements of subsection (d-5) of this Section. The
5Planning and Procurement Bureau shall also develop procurement
6plans and conduct competitive procurement processes in
7accordance with the requirements of Section 16-111.5 of the
8Public Utilities Act for the eligible retail customers of small
9multi-jurisdictional electric utilities that (i) on December
1031, 2005 served less than 100,000 customers in Illinois and
11(ii) request a procurement plan for their Illinois
12jurisdictional load. This Section shall not apply to a small
13multi-jurisdictional utility until such time as a small
14multi-jurisdictional utility requests the Agency to prepare a
15procurement plan for their Illinois jurisdictional load. For
16the purposes of this Section, the term "eligible retail
17customers" has the same definition as found in Section
1816-111.5(a) of the Public Utilities Act.
19    Beginning with the plan or plans to be implemented in the
202017 delivery year, the Agency shall no longer include the
21procurement of renewable energy resources in the annual
22procurement plans required by this subsection (a), except as
23provided in subsection (q) of Section 16-111.5 of the Public
24Utilities Act, and shall instead develop a long-term renewable
25resources procurement plan in accordance with subsection (c) of
26this Section and Section 16-111.5 of the Public Utilities Act.

 

 

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1        (1) The Agency shall each year, beginning in 2008, as
2    needed, issue a request for qualifications for experts or
3    expert consulting firms to develop the procurement plans in
4    accordance with Section 16-111.5 of the Public Utilities
5    Act. In order to qualify an expert or expert consulting
6    firm must have:
7            (A) direct previous experience assembling
8        large-scale power supply plans or portfolios for
9        end-use customers;
10            (B) an advanced degree in economics, mathematics,
11        engineering, risk management, or a related area of
12        study;
13            (C) 10 years of experience in the electricity
14        sector, including managing supply risk;
15            (D) expertise in wholesale electricity market
16        rules, including those established by the Federal
17        Energy Regulatory Commission and regional transmission
18        organizations;
19            (E) expertise in credit protocols and familiarity
20        with contract protocols;
21            (F) adequate resources to perform and fulfill the
22        required functions and responsibilities; and
23            (G) the absence of a conflict of interest and
24        inappropriate bias for or against potential bidders or
25        the affected electric utilities.
26        (2) The Agency shall each year, as needed, issue a

 

 

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

 

 

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

 

 

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

 

 

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1utilities that (i) on December 31, 2005 served less than
2100,000 customers in Illinois and (ii) request a procurement
3plan for their Illinois jurisdictional load.
4    (c) Renewable portfolio standard.
5        (1)(A) The Agency shall develop a long-term renewable
6    resources procurement plan that shall include procurement
7    programs and competitive procurement events necessary to
8    meet the goals set forth in this subsection (c). The
9    initial long-term renewable resources procurement plan
10    shall be released for comment no later than 160 days after
11    June 1, 2017 (the effective date of Public Act 99-906). The
12    Agency shall review, and may revise on an expedited basis,
13    the long-term renewable resources procurement plan at
14    least every 2 years, which shall be conducted in
15    conjunction with the procurement plan under Section
16    16-111.5 of the Public Utilities Act to the extent
17    practicable to minimize administrative expense. The
18    long-term renewable resources procurement plans shall be
19    subject to review and approval by the Commission under
20    Section 16-111.5 of the Public Utilities Act.
21        (B) Subject to subparagraph (F) of this paragraph (1),
22    the long-term renewable resources procurement plan shall
23    include the goals for procurement of renewable energy
24    credits to meet at least the following overall percentages:
25    13% by the 2017 delivery year; increasing by at least 1.5%
26    each delivery year thereafter to at least 25% by the 2025

 

 

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1    delivery year; and continuing at no less than 25% for each
2    delivery year thereafter. In the event of a conflict
3    between these goals and the new wind and new photovoltaic
4    procurement requirements described in items (i) through
5    (iii) of subparagraph (C) of this paragraph (1), the
6    long-term plan shall prioritize compliance with the new
7    wind and new photovoltaic procurement requirements
8    described in items (i) through (iii) of subparagraph (C) of
9    this paragraph (1) over the annual percentage targets
10    described in this subparagraph (B).
11        For the delivery year beginning June 1, 2017, the
12    procurement plan shall include cost-effective renewable
13    energy resources equal to at least 13% of each utility's
14    load for eligible retail customers and 13% of the
15    applicable portion of each utility's load for retail
16    customers who are not eligible retail customers, which
17    applicable portion shall equal 50% of the utility's load
18    for retail customers who are not eligible retail customers
19    on February 28, 2017.
20        For the delivery year beginning June 1, 2018, the
21    procurement plan shall include cost-effective renewable
22    energy resources equal to at least 14.5% of each utility's
23    load for eligible retail customers and 14.5% of the
24    applicable portion of each utility's load for retail
25    customers who are not eligible retail customers, which
26    applicable portion shall equal 75% of the utility's load

 

 

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1    for retail customers who are not eligible retail customers
2    on February 28, 2017.
3        For the delivery year beginning June 1, 2019, and for
4    each year thereafter, the procurement plans shall include
5    cost-effective renewable energy resources equal to a
6    minimum percentage of each utility's load for all retail
7    customers as follows: 16% by June 1, 2019; increasing by
8    1.5% each year thereafter to 25% by June 1, 2025; and 25%
9    by June 1, 2026 and each year thereafter.
10        For each delivery year, the Agency shall first
11    recognize each utility's obligations for that delivery
12    year under existing contracts. Any renewable energy
13    credits under existing contracts, including renewable
14    energy credits as part of renewable energy resources, shall
15    be used to meet the goals set forth in this subsection (c)
16    for the delivery year.
17        (C) Of the renewable energy credits procured under this
18    subsection (c), at least 75% shall come from wind and
19    photovoltaic projects. The long-term renewable resources
20    procurement plan described in subparagraph (A) of this
21    paragraph (1) shall include the procurement of renewable
22    energy credits in amounts equal to at least the following:
23            (i) By the end of the 2020 delivery year:
24                At least 2,000,000 renewable energy credits
25            for each delivery year shall come from new wind
26            projects; and

 

 

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

 

 

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

 

 

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1            paragraph (1).
2            For purposes of this Section:
3                "New wind projects" means wind renewable
4            energy facilities that are energized after June 1,
5            2017 for the delivery year commencing June 1, 2017
6            or within 3 years after the date the Commission
7            approves contracts for subsequent delivery years.
8                "New photovoltaic projects" means photovoltaic
9            renewable energy facilities that are energized
10            after June 1, 2017. Photovoltaic projects
11            developed under Section 1-56 of this Act shall not
12            apply towards the new photovoltaic project
13            requirements in this subparagraph (C).
14        (D) Renewable energy credits shall be cost effective.
15    For purposes of this subsection (c), "cost effective" means
16    that the costs of procuring renewable energy resources do
17    not cause the limit stated in subparagraph (E) of this
18    paragraph (1) to be exceeded and, for renewable energy
19    credits procured through a competitive procurement event,
20    do not exceed benchmarks based on market prices for like
21    products in the region. For purposes of this subsection
22    (c), "like products" means contracts for renewable energy
23    credits from the same or substantially similar technology,
24    same or substantially similar vintage (new or existing),
25    the same or substantially similar quantity, and the same or
26    substantially similar contract length and structure.

 

 

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1    Benchmarks shall be developed by the procurement
2    administrator, in consultation with the Commission staff,
3    Agency staff, and the procurement monitor and shall be
4    subject to Commission review and approval. If price
5    benchmarks for like products in the region are not
6    available, the procurement administrator shall establish
7    price benchmarks based on publicly available data on
8    regional technology costs and expected current and future
9    regional energy prices. The benchmarks in this Section
10    shall not be used to curtail or otherwise reduce
11    contractual obligations entered into by or through the
12    Agency prior to June 1, 2017 (the effective date of Public
13    Act 99-906).
14        (E) For purposes of this subsection (c), the required
15    procurement of cost-effective renewable energy resources
16    for a particular year commencing prior to June 1, 2017
17    shall be measured as a percentage of the actual amount of
18    electricity (megawatt-hours) supplied by the electric
19    utility to eligible retail customers in the delivery year
20    ending immediately prior to the procurement, and, for
21    delivery years commencing on and after June 1, 2017, the
22    required procurement of cost-effective renewable energy
23    resources for a particular year shall be measured as a
24    percentage of the actual amount of electricity
25    (megawatt-hours) delivered by the electric utility in the
26    delivery year ending immediately prior to the procurement,

 

 

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1    to all retail customers in its service territory. For
2    purposes of this subsection (c), the amount paid per
3    kilowatthour means the total amount paid for electric
4    service expressed on a per kilowatthour basis. For purposes
5    of this subsection (c), the total amount paid for electric
6    service includes without limitation amounts paid for
7    supply, transmission, distribution, surcharges, and add-on
8    taxes.
9        Notwithstanding the requirements of this subsection
10    (c), the total of renewable energy resources procured under
11    the procurement plan for any single year shall be subject
12    to the limitations of this subparagraph (E). Such
13    procurement shall be reduced for all retail customers based
14    on the amount necessary to limit the annual estimated
15    average net increase due to the costs of these resources
16    included in the amounts paid by eligible retail customers
17    in connection with electric service to no more than the
18    greater of 2.015% of the amount paid per kilowatthour by
19    those customers during the year ending May 31, 2007 or the
20    incremental amount per kilowatthour paid for these
21    resources in 2011. To arrive at a maximum dollar amount of
22    renewable energy resources to be procured for the
23    particular delivery year, the resulting per kilowatthour
24    amount shall be applied to the actual amount of
25    kilowatthours of electricity delivered, or applicable
26    portion of such amount as specified in paragraph (1) of

 

 

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1    this subsection (c), as applicable, by the electric utility
2    in the delivery year immediately prior to the procurement
3    to all retail customers in its service territory. The
4    calculations required by this subparagraph (E) shall be
5    made only once for each delivery year at the time that the
6    renewable energy resources are procured. Once the
7    determination as to the amount of renewable energy
8    resources to procure is made based on the calculations set
9    forth in this subparagraph (E) and the contracts procuring
10    those amounts are executed, no subsequent rate impact
11    determinations shall be made and no adjustments to those
12    contract amounts shall be allowed. All costs incurred under
13    such contracts shall be fully recoverable by the electric
14    utility as provided in this Section.
15        (F) If the limitation on the amount of renewable energy
16    resources procured in subparagraph (E) of this paragraph
17    (1) prevents the Agency from meeting all of the goals in
18    this subsection (c), the Agency's long-term plan shall
19    prioritize compliance with the requirements of this
20    subsection (c) regarding renewable energy credits in the
21    following order:
22            (i) renewable energy credits under existing
23        contractual obligations;
24            (i-5) funding for the Illinois Solar for All
25        Program, as described in subparagraph (O) of this
26        paragraph (1);

 

 

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1            (ii) renewable energy credits necessary to comply
2        with the new wind and new photovoltaic procurement
3        requirements described in items (i) through (iii) of
4        subparagraph (C) of this paragraph (1); and
5            (iii) renewable energy credits necessary to meet
6        the remaining requirements of this subsection (c).
7        (G) The following provisions shall apply to the
8    Agency's procurement of renewable energy credits under
9    this subsection (c):
10            (i) Notwithstanding whether a long-term renewable
11        resources procurement plan has been approved, the
12        Agency shall conduct an initial forward procurement
13        for renewable energy credits from new utility-scale
14        wind projects within 160 days after June 1, 2017 (the
15        effective date of Public Act 99-906). For the purposes
16        of this initial forward procurement, the Agency shall
17        solicit 15-year contracts for delivery of 1,000,000
18        renewable energy credits delivered annually from new
19        utility-scale wind projects to begin delivery on June
20        1, 2019, if available, but not later than June 1, 2021,
21        unless the project has delays in the establishment of
22        an operating interconnection with the applicable
23        transmission or distribution system as a result of the
24        actions or inactions of the transmission or
25        distribution provider, or other causes for force
26        majeure as outlined in the procurement contract, in

 

 

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1        which case, not later than June 1, 2022. Payments to
2        suppliers of renewable energy credits shall commence
3        upon delivery. Renewable energy credits procured under
4        this initial procurement shall be included in the
5        Agency's long-term plan and shall apply to all
6        renewable energy goals in this subsection (c).
7            (ii) Notwithstanding whether a long-term renewable
8        resources procurement plan has been approved, the
9        Agency shall conduct an initial forward procurement
10        for renewable energy credits from new utility-scale
11        solar projects and brownfield site photovoltaic
12        projects within one year after June 1, 2017 (the
13        effective date of Public Act 99-906). For the purposes
14        of this initial forward procurement, the Agency shall
15        solicit 15-year contracts for delivery of 1,000,000
16        renewable energy credits delivered annually from new
17        utility-scale solar projects and brownfield site
18        photovoltaic projects to begin delivery on June 1,
19        2019, if available, but not later than June 1, 2021,
20        unless the project has delays in the establishment of
21        an operating interconnection with the applicable
22        transmission or distribution system as a result of the
23        actions or inactions of the transmission or
24        distribution provider, or other causes for force
25        majeure as outlined in the procurement contract, in
26        which case, not later than June 1, 2023; provided that

 

 

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1        the delivery start date under a procurement contract
2        shall be extended to a date not later than June 1, 2023
3        if the project provides notice to the utility
4        counterparty that the project elects to amend its
5        procurement contract to utilize such extension prior
6        to the delivery start date under the procurement
7        contract. The Commission shall approve such a contract
8        date extension upon the request of any contracting
9        party 2022. The Agency may structure this initial
10        procurement in one or more discrete procurement
11        events. Payments to suppliers of renewable energy
12        credits shall commence upon delivery. Renewable energy
13        credits procured under this initial procurement shall
14        be included in the Agency's long-term plan and shall
15        apply to all renewable energy goals in this subsection
16        (c).
17            (iii) Subsequent forward procurements for
18        utility-scale wind projects shall solicit at least
19        1,000,000 renewable energy credits delivered annually
20        per procurement event and shall be planned, scheduled,
21        and designed such that the cumulative amount of
22        renewable energy credits delivered from all new wind
23        projects in each delivery year shall not exceed the
24        Agency's projection of the cumulative amount of
25        renewable energy credits that will be delivered from
26        all new photovoltaic projects, including utility-scale

 

 

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1        and distributed photovoltaic devices, in the same
2        delivery year at the time scheduled for wind contract
3        delivery.
4            (iv) If, at any time after the time set for
5        delivery of renewable energy credits pursuant to the
6        initial procurements in items (i) and (ii) of this
7        subparagraph (G), the cumulative amount of renewable
8        energy credits projected to be delivered from all new
9        wind projects in a given delivery year exceeds the
10        cumulative amount of renewable energy credits
11        projected to be delivered from all new photovoltaic
12        projects in that delivery year by 200,000 or more
13        renewable energy credits, then the Agency shall within
14        60 days adjust the procurement programs in the
15        long-term renewable resources procurement plan to
16        ensure that the projected cumulative amount of
17        renewable energy credits to be delivered from all new
18        wind projects does not exceed the projected cumulative
19        amount of renewable energy credits to be delivered from
20        all new photovoltaic projects by 200,000 or more
21        renewable energy credits, provided that nothing in
22        this Section shall preclude the projected cumulative
23        amount of renewable energy credits to be delivered from
24        all new photovoltaic projects from exceeding the
25        projected cumulative amount of renewable energy
26        credits to be delivered from all new wind projects in

 

 

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1        each delivery year and provided further that nothing in
2        this item (iv) shall require the curtailment of an
3        executed contract. The Agency shall update, on a
4        quarterly basis, its projection of the renewable
5        energy credits to be delivered from all projects in
6        each delivery year. Notwithstanding anything to the
7        contrary, the Agency may adjust the timing of
8        procurement events conducted under this subparagraph
9        (G). The long-term renewable resources procurement
10        plan shall set forth the process by which the
11        adjustments may be made.
12            (v) All procurements under this subparagraph (G)
13        shall comply with the geographic requirements in
14        subparagraph (I) of this paragraph (1) and shall follow
15        the procurement processes and procedures described in
16        this Section and Section 16-111.5 of the Public
17        Utilities Act to the extent practicable, and these
18        processes and procedures may be expedited to
19        accommodate the schedule established by this
20        subparagraph (G).
21        (H) The procurement of renewable energy resources for a
22    given delivery year shall be reduced as described in this
23    subparagraph (H) if an alternative retail electric
24    supplier meets the requirements described in this
25    subparagraph (H).
26            (i) Within 45 days after June 1, 2017 (the

 

 

10100HB0156sam001- 21 -LRB101 03973 LNS 74533 a

1        effective date of Public Act 99-906), an alternative
2        retail electric supplier or its successor shall submit
3        an informational filing to the Illinois Commerce
4        Commission certifying that, as of December 31, 2015,
5        the alternative retail electric supplier owned one or
6        more electric generating facilities that generates
7        renewable energy resources as defined in Section 1-10
8        of this Act, provided that such facilities are not
9        powered by wind or photovoltaics, and the facilities
10        generate one renewable energy credit for each
11        megawatthour of energy produced from the facility.
12            The informational filing shall identify each
13        facility that was eligible to satisfy the alternative
14        retail electric supplier's obligations under Section
15        16-115D of the Public Utilities Act as described in
16        this item (i).
17            (ii) For a given delivery year, the alternative
18        retail electric supplier may elect to supply its retail
19        customers with renewable energy credits from the
20        facility or facilities described in item (i) of this
21        subparagraph (H) that continue to be owned by the
22        alternative retail electric supplier.
23            (iii) The alternative retail electric supplier
24        shall notify the Agency and the applicable utility, no
25        later than February 28 of the year preceding the
26        applicable delivery year or 15 days after June 1, 2017

 

 

10100HB0156sam001- 22 -LRB101 03973 LNS 74533 a

1        (the effective date of Public Act 99-906), whichever is
2        later, of its election under item (ii) of this
3        subparagraph (H) to supply renewable energy credits to
4        retail customers of the utility. Such election shall
5        identify the amount of renewable energy credits to be
6        supplied by the alternative retail electric supplier
7        to the utility's retail customers and the source of the
8        renewable energy credits identified in the
9        informational filing as described in item (i) of this
10        subparagraph (H), subject to the following
11        limitations:
12                For the delivery year beginning June 1, 2018,
13            the maximum amount of renewable energy credits to
14            be supplied by an alternative retail electric
15            supplier under this subparagraph (H) shall be 68%
16            multiplied by 25% multiplied by 14.5% multiplied
17            by the amount of metered electricity
18            (megawatt-hours) delivered by the alternative
19            retail electric supplier to Illinois retail
20            customers during the delivery year ending May 31,
21            2016.
22                For delivery years beginning June 1, 2019 and
23            each year thereafter, the maximum amount of
24            renewable energy credits to be supplied by an
25            alternative retail electric supplier under this
26            subparagraph (H) shall be 68% multiplied by 50%

 

 

10100HB0156sam001- 23 -LRB101 03973 LNS 74533 a

1            multiplied by 16% multiplied by the amount of
2            metered electricity (megawatt-hours) delivered by
3            the alternative retail electric supplier to
4            Illinois retail customers during the delivery year
5            ending May 31, 2016, provided that the 16% value
6            shall increase by 1.5% each delivery year
7            thereafter to 25% by the delivery year beginning
8            June 1, 2025, and thereafter the 25% value shall
9            apply to each delivery year.
10            For each delivery year, the total amount of
11        renewable energy credits supplied by all alternative
12        retail electric suppliers under this subparagraph (H)
13        shall not exceed 9% of the Illinois target renewable
14        energy credit quantity. The Illinois target renewable
15        energy credit quantity for the delivery year beginning
16        June 1, 2018 is 14.5% multiplied by the total amount of
17        metered electricity (megawatt-hours) delivered in the
18        delivery year immediately preceding that delivery
19        year, provided that the 14.5% shall increase by 1.5%
20        each delivery year thereafter to 25% by the delivery
21        year beginning June 1, 2025, and thereafter the 25%
22        value shall apply to each delivery year.
23            If the requirements set forth in items (i) through
24        (iii) of this subparagraph (H) are met, the charges
25        that would otherwise be applicable to the retail
26        customers of the alternative retail electric supplier

 

 

10100HB0156sam001- 24 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 25 -LRB101 03973 LNS 74533 a

1    reliability and resiliency of the electricity distribution
2    system in this State, meeting goals to limit carbon dioxide
3    emissions under federal or State law, and contributing to a
4    cleaner and healthier environment for the citizens of this
5    State. In order to further these legislative purposes,
6    renewable energy credits shall be eligible to be counted
7    toward the renewable energy requirements of this
8    subsection (c) if they are generated from facilities
9    located in this State. The Agency may qualify renewable
10    energy credits from facilities located in states adjacent
11    to Illinois if the generator demonstrates and the Agency
12    determines that the operation of such facility or
13    facilities will help promote the State's interest in the
14    health, safety, and welfare of its residents based on the
15    public interest criteria described above. To ensure that
16    the public interest criteria are applied to the procurement
17    and given full effect, the Agency's long-term procurement
18    plan shall describe in detail how each public interest
19    factor shall be considered and weighted for facilities
20    located in states adjacent to Illinois.
21        (J) In order to promote the competitive development of
22    renewable energy resources in furtherance of the State's
23    interest in the health, safety, and welfare of its
24    residents, renewable energy credits shall not be eligible
25    to be counted toward the renewable energy requirements of
26    this subsection (c) if they are sourced from a generating

 

 

10100HB0156sam001- 26 -LRB101 03973 LNS 74533 a

1    unit whose costs were being recovered through rates
2    regulated by this State or any other state or states on or
3    after January 1, 2017. Each contract executed to purchase
4    renewable energy credits under this subsection (c) shall
5    provide for the contract's termination if the costs of the
6    generating unit supplying the renewable energy credits
7    subsequently begin to be recovered through rates regulated
8    by this State or any other state or states; and each
9    contract shall further provide that, in that event, the
10    supplier of the credits must return 110% of all payments
11    received under the contract. Amounts returned under the
12    requirements of this subparagraph (J) shall be retained by
13    the utility and all of these amounts shall be used for the
14    procurement of additional renewable energy credits from
15    new wind or new photovoltaic resources as defined in this
16    subsection (c). The long-term plan shall provide that these
17    renewable energy credits shall be procured in the next
18    procurement event.
19        Notwithstanding the limitations of this subparagraph
20    (J), renewable energy credits sourced from generating
21    units that are constructed, purchased, owned, or leased by
22    an electric utility as part of an approved project,
23    program, or pilot under Section 1-56 of this Act shall be
24    eligible to be counted toward the renewable energy
25    requirements of this subsection (c), regardless of how the
26    costs of these units are recovered.

 

 

10100HB0156sam001- 27 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 28 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 29 -LRB101 03973 LNS 74533 a

1        kilowatts. The Agency may create sub-categories within
2        this category to account for the differences between
3        projects for small commercial customers, large
4        commercial customers, and public or non-profit
5        customers.
6            (iii) At least 25% from photovoltaic community
7        renewable generation projects.
8            (iv) The remaining 25% shall be allocated as
9        specified by the Agency in the long-term renewable
10        resources procurement plan.
11        The Adjustable Block program shall be designed to
12    ensure that renewable energy credits are procured from
13    photovoltaic distributed renewable energy generation
14    devices and new photovoltaic community renewable energy
15    generation projects in diverse locations and are not
16    concentrated in a few geographic areas.
17        (L) The procurement of photovoltaic renewable energy
18    credits under items (i) through (iv) of subparagraph (K) of
19    this paragraph (1) shall be subject to the following
20    contract and payment terms:
21            (i) The Agency shall procure contracts of at least
22        15 years in length.
23            (ii) For those renewable energy credits that
24        qualify and are procured under item (i) of subparagraph
25        (K) of this paragraph (1), the renewable energy credit
26        purchase price shall be paid in full by the contracting

 

 

10100HB0156sam001- 30 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 31 -LRB101 03973 LNS 74533 a

1        are approved by the Commission under the process
2        described in Section 16-111.5 of the Public Utilities
3        Act. No contract shall be executed for an amount that
4        is less than one renewable energy credit per year.
5            (vi) If, at any time, approved applications for the
6        Adjustable Block program exceed funds collected by the
7        electric utility or would cause the Agency to exceed
8        the limitation described in subparagraph (E) of this
9        paragraph (1) on the amount of renewable energy
10        resources that may be procured, then the Agency shall
11        consider future uncommitted funds to be reserved for
12        these contracts on a first-come, first-served basis,
13        with the delivery of renewable energy credits required
14        beginning at the time that the reserved funds become
15        available.
16            (vii) Nothing in this Section shall require the
17        utility to advance any payment or pay any amounts that
18        exceed the actual amount of revenues collected by the
19        utility under paragraph (6) of this subsection (c) and
20        subsection (k) of Section 16-108 of the Public
21        Utilities Act, and contracts executed under this
22        Section shall expressly incorporate this limitation.
23        (M) The Agency shall be authorized to retain one or
24    more experts or expert consulting firms to develop,
25    administer, implement, operate, and evaluate the
26    Adjustable Block program described in subparagraph (K) of

 

 

10100HB0156sam001- 32 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 33 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 34 -LRB101 03973 LNS 74533 a

1    proportional output of a community renewable generation
2    project attributable to that subscriber as specified in
3    Section 16-107.5 of the Public Utilities Act.
4        The Agency shall purchase renewable energy credits
5    from subscribed shares of photovoltaic community renewable
6    generation projects through the Adjustable Block program
7    described in subparagraph (K) of this paragraph (1) or
8    through the Illinois Solar for All Program described in
9    Section 1-56 of this Act. The electric utility shall
10    purchase any unsubscribed energy from community renewable
11    generation projects that are Qualifying Facilities ("QF")
12    under the electric utility's tariff for purchasing the
13    output from QFs under Public Utilities Regulatory Policies
14    Act of 1978.
15        The owners of and any subscribers to a community
16    renewable generation project shall not be considered
17    public utilities or alternative retail electricity
18    suppliers under the Public Utilities Act solely as a result
19    of their interest in or subscription to a community
20    renewable generation project and shall not be required to
21    become an alternative retail electric supplier by
22    participating in a community renewable generation project
23    with a public utility.
24        (O) For the delivery year beginning June 1, 2018, the
25    long-term renewable resources procurement plan required by
26    this subsection (c) shall provide for the Agency to procure

 

 

10100HB0156sam001- 35 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 36 -LRB101 03973 LNS 74533 a

1        (2) (Blank).
2        (3) (Blank).
3        (4) The electric utility shall retire all renewable
4    energy credits used to comply with the standard.
5        (5) Beginning with the 2010 delivery year and ending
6    June 1, 2017, an electric utility subject to this
7    subsection (c) shall apply the lesser of the maximum
8    alternative compliance payment rate or the most recent
9    estimated alternative compliance payment rate for its
10    service territory for the corresponding compliance period,
11    established pursuant to subsection (d) of Section 16-115D
12    of the Public Utilities Act to its retail customers that
13    take service pursuant to the electric utility's hourly
14    pricing tariff or tariffs. The electric utility shall
15    retain all amounts collected as a result of the application
16    of the alternative compliance payment rate or rates to such
17    customers, and, beginning in 2011, the utility shall
18    include in the information provided under item (1) of
19    subsection (d) of Section 16-111.5 of the Public Utilities
20    Act the amounts collected under the alternative compliance
21    payment rate or rates for the prior year ending May 31.
22    Notwithstanding any limitation on the procurement of
23    renewable energy resources imposed by item (2) of this
24    subsection (c), the Agency shall increase its spending on
25    the purchase of renewable energy resources to be procured
26    by the electric utility for the next plan year by an amount

 

 

10100HB0156sam001- 37 -LRB101 03973 LNS 74533 a

1    equal to the amounts collected by the utility under the
2    alternative compliance payment rate or rates in the prior
3    year ending May 31.
4        (6) The electric utility shall be entitled to recover
5    all of its costs associated with the procurement of
6    renewable energy credits under plans approved under this
7    Section and Section 16-111.5 of the Public Utilities Act.
8    These costs shall include associated reasonable expenses
9    for implementing the procurement programs, including, but
10    not limited to, the costs of administering and evaluating
11    the Adjustable Block program, through an automatic
12    adjustment clause tariff in accordance with subsection (k)
13    of Section 16-108 of the Public Utilities Act.
14        (7) Renewable energy credits procured from new
15    photovoltaic projects or new distributed renewable energy
16    generation devices under this Section after June 1, 2017
17    (the effective date of Public Act 99-906) must be procured
18    from devices installed by a qualified person in compliance
19    with the requirements of Section 16-128A of the Public
20    Utilities Act and any rules or regulations adopted
21    thereunder.
22        In meeting the renewable energy requirements of this
23    subsection (c), to the extent feasible and consistent with
24    State and federal law, the renewable energy credit
25    procurements, Adjustable Block solar program, and
26    community renewable generation program shall provide

 

 

10100HB0156sam001- 38 -LRB101 03973 LNS 74533 a

1    employment opportunities for all segments of the
2    population and workforce, including minority-owned and
3    female-owned business enterprises, and shall not,
4    consistent with State and federal law, discriminate based
5    on race or socioeconomic status.
6    (d) Clean coal portfolio standard.
7        (1) The procurement plans shall include electricity
8    generated using clean coal. Each utility shall enter into
9    one or more sourcing agreements with the initial clean coal
10    facility, as provided in paragraph (3) of this subsection
11    (d), covering electricity generated by the initial clean
12    coal facility representing at least 5% of each utility's
13    total supply to serve the load of eligible retail customers
14    in 2015 and each year thereafter, as described in paragraph
15    (3) of this subsection (d), subject to the limits specified
16    in paragraph (2) of this subsection (d). It is the goal of
17    the State that by January 1, 2025, 25% of the electricity
18    used in the State shall be generated by cost-effective
19    clean coal facilities. For purposes of this subsection (d),
20    "cost-effective" means that the expenditures pursuant to
21    such sourcing agreements do not cause the limit stated in
22    paragraph (2) of this subsection (d) to be exceeded and do
23    not exceed cost-based benchmarks, which shall be developed
24    to assess all expenditures pursuant to such sourcing
25    agreements covering electricity generated by clean coal
26    facilities, other than the initial clean coal facility, by

 

 

10100HB0156sam001- 39 -LRB101 03973 LNS 74533 a

1    the procurement administrator, in consultation with the
2    Commission staff, Agency staff, and the procurement
3    monitor and shall be subject to Commission review and
4    approval.
5        A utility party to a sourcing agreement shall
6    immediately retire any emission credits that it receives in
7    connection with the electricity covered by such agreement.
8        Utilities shall maintain adequate records documenting
9    the purchases under the sourcing agreement to comply with
10    this subsection (d) and shall file an accounting with the
11    load forecast that must be filed with the Agency by July 15
12    of each year, in accordance with subsection (d) of Section
13    16-111.5 of the Public Utilities Act.
14        A utility shall be deemed to have complied with the
15    clean coal portfolio standard specified in this subsection
16    (d) if the utility enters into a sourcing agreement as
17    required by this subsection (d).
18        (2) For purposes of this subsection (d), the required
19    execution of sourcing agreements with the initial clean
20    coal facility for a particular year shall be measured as a
21    percentage of the actual amount of electricity
22    (megawatt-hours) supplied by the electric utility to
23    eligible retail customers in the planning year ending
24    immediately prior to the agreement's execution. For
25    purposes of this subsection (d), the amount paid per
26    kilowatthour means the total amount paid for electric

 

 

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1    service expressed on a per kilowatthour basis. For purposes
2    of this subsection (d), the total amount paid for electric
3    service includes without limitation amounts paid for
4    supply, transmission, distribution, surcharges and add-on
5    taxes.
6        Notwithstanding the requirements of this subsection
7    (d), the total amount paid under sourcing agreements with
8    clean coal facilities pursuant to the procurement plan for
9    any given year shall be reduced by an amount necessary to
10    limit the annual estimated average net increase due to the
11    costs of these resources included in the amounts paid by
12    eligible retail customers in connection with electric
13    service to:
14            (A) in 2010, no more than 0.5% of the amount paid
15        per kilowatthour by those customers during the year
16        ending May 31, 2009;
17            (B) in 2011, the greater of an additional 0.5% of
18        the amount paid per kilowatthour by those customers
19        during the year ending May 31, 2010 or 1% of the amount
20        paid per kilowatthour by those customers during the
21        year ending May 31, 2009;
22            (C) in 2012, the greater of an additional 0.5% of
23        the amount paid per kilowatthour by those customers
24        during the year ending May 31, 2011 or 1.5% of the
25        amount paid per kilowatthour by those customers during
26        the year ending May 31, 2009;

 

 

10100HB0156sam001- 41 -LRB101 03973 LNS 74533 a

1            (D) in 2013, the greater of an additional 0.5% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2012 or 2% of the amount
4        paid per kilowatthour by those customers during the
5        year ending May 31, 2009; and
6            (E) thereafter, the total amount paid under
7        sourcing agreements with clean coal facilities
8        pursuant to the procurement plan for any single year
9        shall be reduced by an amount necessary to limit the
10        estimated average net increase due to the cost of these
11        resources included in the amounts paid by eligible
12        retail customers in connection with electric service
13        to no more than the greater of (i) 2.015% of the amount
14        paid per kilowatthour by those customers during the
15        year ending May 31, 2009 or (ii) the incremental amount
16        per kilowatthour paid for these resources in 2013.
17        These requirements may be altered only as provided by
18        statute.
19        No later than June 30, 2015, the Commission shall
20    review the limitation on the total amount paid under
21    sourcing agreements, if any, with clean coal facilities
22    pursuant to this subsection (d) and report to the General
23    Assembly its findings as to whether that limitation unduly
24    constrains the amount of electricity generated by
25    cost-effective clean coal facilities that is covered by
26    sourcing agreements.

 

 

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

 

 

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

 

 

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1            sourcing agreement shall pay the contract price
2            for electricity delivered under such sourcing
3            agreement;
4                (ii) require delivery of electricity to the
5            regional transmission organization market of the
6            utility that is party to such sourcing agreement;
7                (iii) require the utility party to such
8            sourcing agreement to buy from the initial clean
9            coal facility in each hour an amount of energy
10            equal to all clean coal energy made available from
11            the initial clean coal facility during such hour
12            times a fraction, the numerator of which is such
13            utility's retail market sales of electricity
14            (expressed in kilowatthours sold) in the State
15            during the prior calendar month and the
16            denominator of which is the total retail market
17            sales of electricity (expressed in kilowatthours
18            sold) in the State by utilities during such prior
19            month and the sales of electricity (expressed in
20            kilowatthours sold) in the State by alternative
21            retail electric suppliers during such prior month
22            that are subject to the requirements of this
23            subsection (d) and paragraph (5) of subsection (d)
24            of Section 16-115 of the Public Utilities Act,
25            provided that the amount purchased by the utility
26            in any year will be limited by paragraph (2) of

 

 

10100HB0156sam001- 45 -LRB101 03973 LNS 74533 a

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

 

 

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1            year will be limited by paragraph (2) of this
2            subsection (d);
3                (ii) provide that the utility's payment
4            obligation in respect of the quantity of
5            electricity determined pursuant to the preceding
6            clause (i) shall be limited to an amount equal to
7            (1) the difference between the contract price
8            determined pursuant to subparagraph (A) of
9            paragraph (3) of this subsection (d) and the
10            day-ahead price for electricity delivered to the
11            regional transmission organization market of the
12            utility that is party to such sourcing agreement
13            (or any successor delivery point at which such
14            utility's supply obligations are financially
15            settled on an hourly basis) (the "reference
16            price") on the day preceding the day on which the
17            electricity is delivered to the initial clean coal
18            facility busbar, multiplied by (2) the quantity of
19            electricity determined pursuant to the preceding
20            clause (i); and
21                (iii) not require the utility to take physical
22            delivery of the electricity produced by the
23            facility;
24            (D) general provisions, which shall:
25                (i) specify a term of no more than 30 years,
26            commencing on the commercial operation date of the

 

 

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

 

 

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

 

 

10100HB0156sam001- 49 -LRB101 03973 LNS 74533 a

1            designation as a clean coal facility if the
2            facility fails to fully comply with the applicable
3            carbon sequestration requirements in any given
4            year, provided the requisite offsets are
5            purchased. However, the Attorney General, on
6            behalf of the People of the State of Illinois, may
7            specifically enforce the facility's sequestration
8            requirement and the other terms of this contract
9            provision. Compliance with the sequestration
10            requirements and offset purchase requirements
11            specified in paragraph (3) of this subsection (d)
12            shall be reviewed annually by an independent
13            expert retained by the owner of the initial clean
14            coal facility, with the advance written approval
15            of the Attorney General. The Commission may, in the
16            course of the review specified in item (vii),
17            reduce the allowable return on equity for the
18            facility if the facility willfully fails to comply
19            with the carbon capture and sequestration
20            requirements set forth in this item (v);
21                (vi) include limits on, and accordingly
22            provide for modification of, the amount the
23            utility is required to source under the sourcing
24            agreement consistent with paragraph (2) of this
25            subsection (d);
26                (vii) require Commission review: (1) to

 

 

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

 

 

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1            to the facility busbar;
2                (x) provide that the owner or owners of the
3            initial clean coal facility, which is the
4            counterparty to such sourcing agreement, shall
5            have the right from time to time to elect whether
6            the obligations of the utility party thereto shall
7            be governed by the power purchase provisions or the
8            contract for differences provisions;
9                (xi) append documentation showing that the
10            formula rate and contract, insofar as they relate
11            to the power purchase provisions, have been
12            approved by the Federal Energy Regulatory
13            Commission pursuant to Section 205 of the Federal
14            Power Act;
15                (xii) provide that any changes to the terms of
16            the contract, insofar as such changes relate to the
17            power purchase provisions, are subject to review
18            under the public interest standard applied by the
19            Federal Energy Regulatory Commission pursuant to
20            Sections 205 and 206 of the Federal Power Act; and
21                (xiii) conform with customary lender
22            requirements in power purchase agreements used as
23            the basis for financing non-utility generators.
24        (4) Effective date of sourcing agreements with the
25    initial clean coal facility. Any proposed sourcing
26    agreement with the initial clean coal facility shall not

 

 

10100HB0156sam001- 52 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 53 -LRB101 03973 LNS 74533 a

1        agreements, and an analysis of the likelihood that the
2        initial clean coal facility will commence commercial
3        operation by and be delivering power to the facility's
4        busbar by 2016. To assist in the preparation of its
5        report, the Commission, in consultation with the
6        Agency, may hire one or more experts or consultants,
7        the costs of which shall be paid for by the owner of
8        the initial clean coal facility. The Commission and
9        Agency may begin the process of selecting such experts
10        or consultants prior to receipt of the facility cost
11        report.
12            (iii) General Assembly approval. The proposed
13        sourcing agreements shall not take effect unless,
14        based on the facility cost report and the Commission's
15        report, the General Assembly enacts authorizing
16        legislation approving (A) the projected price, stated
17        in cents per kilowatthour, to be charged for
18        electricity generated by the initial clean coal
19        facility, (B) the projected impact on residential and
20        small business customers' bills over the life of the
21        sourcing agreements, and (C) the maximum allowable
22        return on equity for the project; and
23            (iv) Commission review. If the General Assembly
24        enacts authorizing legislation pursuant to
25        subparagraph (iii) approving a sourcing agreement, the
26        Commission shall, within 90 days of such enactment,

 

 

10100HB0156sam001- 54 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 55 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 56 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 57 -LRB101 03973 LNS 74533 a

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

 

 

10100HB0156sam001- 58 -LRB101 03973 LNS 74533 a

1    The Agency and the Commission may approve any such utility
2    sourcing agreements that do not exceed cost-based
3    benchmarks developed by the procurement administrator, in
4    consultation with the Commission staff, Agency staff and
5    the procurement monitor, subject to Commission review and
6    approval. The Commission shall have authority to inspect
7    all books and records associated with these clean coal
8    facilities during the term of any such contract.
9        (6) Costs incurred under this subsection (d) or
10    pursuant to a contract entered into under this subsection
11    (d) shall be deemed prudently incurred and reasonable in
12    amount and the electric utility shall be entitled to full
13    cost recovery pursuant to the tariffs filed with the
14    Commission.
15    (d-5) Zero emission standard.
16        (1) Beginning with the delivery year commencing on June
17    1, 2017, the Agency shall, for electric utilities that
18    serve at least 100,000 retail customers in this State,
19    procure contracts with zero emission facilities that are
20    reasonably capable of generating cost-effective zero
21    emission credits in an amount approximately equal to 16% of
22    the actual amount of electricity delivered by each electric
23    utility to retail customers in the State during calendar
24    year 2014. For an electric utility serving fewer than
25    100,000 retail customers in this State that requested,
26    under Section 16-111.5 of the Public Utilities Act, that

 

 

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

 

 

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

 

 

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

 

 

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1        Social Cost of Carbon by the amount ("Price
2        Adjustment") by which the market price index for the
3        applicable delivery year exceeds the baseline market
4        price index for the consecutive 12-month period ending
5        May 31, 2016. If the Price Adjustment is greater than
6        or equal to the Social Cost of Carbon in an applicable
7        delivery year, then no payments shall be due in that
8        delivery year. The components of this calculation are
9        defined as follows:
10                (i) Social Cost of Carbon: The Social Cost of
11            Carbon is $16.50 per megawatthour, which is based
12            on the U.S. Interagency Working Group on Social
13            Cost of Carbon's price in the August 2016 Technical
14            Update using a 3% discount rate, adjusted for
15            inflation for each year of the program. Beginning
16            with the delivery year commencing June 1, 2023, the
17            price per megawatthour shall increase by $1 per
18            megawatthour, and continue to increase by an
19            additional $1 per megawatthour each delivery year
20            thereafter.
21                (ii) Baseline market price index: The baseline
22            market price index for the consecutive 12-month
23            period ending May 31, 2016 is $31.40 per
24            megawatthour, which is based on the sum of (aa) the
25            average day-ahead energy price across all hours of
26            such 12-month period at the PJM Interconnection

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            emissions that adversely affect the citizens of
2            this State;
3                (ii) specifically address how the selection of
4            winning bids takes into account the incremental
5            environmental benefits resulting from the
6            procurement, including any existing environmental
7            benefits that are preserved by the procurements
8            held under Public Act 99-906 and would have ceased
9            to exist if the procurements had not been held,
10            such as the preservation of zero emission
11            facilities;
12                (iii) quantify the environmental benefit of
13            preserving the resources identified in item (ii)
14            of this subparagraph (C-5), including the
15            following:
16                    (aa) the value of avoided greenhouse gas
17                emissions measured as the product of the zero
18                emission facilities' output over the contract
19                term multiplied by the U.S. Environmental
20                Protection Agency eGrid subregion carbon
21                dioxide emission rate and the U.S. Interagency
22                Working Group on Social Cost of Carbon's price
23                in the August 2016 Technical Update using a 3%
24                discount rate, adjusted for inflation for each
25                delivery year; and
26                    (bb) the costs of replacement with other

 

 

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1                zero carbon dioxide resources, including wind
2                and photovoltaic, based upon the simple
3                average of the following:
4                        (I) the price, or if there is more than
5                    one price, the average of the prices, paid
6                    for renewable energy credits from new
7                    utility-scale wind projects in the
8                    procurement events specified in item (i)
9                    of subparagraph (G) of paragraph (1) of
10                    subsection (c) of this Section; and
11                        (II) the price, or if there is more
12                    than one price, the average of the prices,
13                    paid for renewable energy credits from new
14                    utility-scale solar projects and
15                    brownfield site photovoltaic projects in
16                    the procurement events specified in item
17                    (ii) of subparagraph (G) of paragraph (1)
18                    of subsection (c) of this Section and,
19                    after January 1, 2015, renewable energy
20                    credits from photovoltaic distributed
21                    generation projects in procurement events
22                    held under subsection (c) of this Section.
23            Each utility shall enter into binding contractual
24        arrangements with the winning suppliers.
25            The procurement described in this subsection
26        (d-5), including, but not limited to, the execution of

 

 

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1        all contracts procured, shall be completed no later
2        than May 10, 2017. Based on the effective date of
3        Public Act 99-906, the Agency and Commission may, as
4        appropriate, modify the various dates and timelines
5        under this subparagraph and subparagraphs (C) and (D)
6        of this paragraph (1). The procurement and plan
7        approval processes required by this subsection (d-5)
8        shall be conducted in conjunction with the procurement
9        and plan approval processes required by subsection (c)
10        of this Section and Section 16-111.5 of the Public
11        Utilities Act, to the extent practicable.
12        Notwithstanding whether a procurement event is
13        conducted under Section 16-111.5 of the Public
14        Utilities Act, the Agency shall immediately initiate a
15        procurement process on June 1, 2017 (the effective date
16        of Public Act 99-906).
17            (D) Following the procurement event described in
18        this paragraph (1) and consistent with subparagraph
19        (B) of this paragraph (1), the Agency shall calculate
20        the payments to be made under each contract for the
21        next delivery year based on the market price index for
22        that delivery year. The Agency shall publish the
23        payment calculations no later than May 25, 2017 and
24        every May 25 thereafter.
25            (E) Notwithstanding the requirements of this
26        subsection (d-5), the contracts executed under this

 

 

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

 

 

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1                (ii) A zero emission facility shall be
2            permitted to terminate the contract if legislation
3            is enacted into law by the General Assembly that
4            imposes or authorizes a new tax, special
5            assessment, or fee on the generation of
6            electricity, the ownership or leasehold of a
7            generating unit, or the privilege or occupation of
8            such generation, ownership, or leasehold of
9            generation units by a zero emission facility.
10            However, the provisions of this item (ii) do not
11            apply to any generally applicable tax, special
12            assessment or fee, or requirements imposed by
13            federal law.
14                (iii) A zero emission facility shall be
15            permitted to terminate the contract in the event
16            that the resource requires capital expenditures in
17            excess of $40,000,000 that were neither known nor
18            reasonably foreseeable at the time it executed the
19            contract and that a prudent owner or operator of
20            such resource would not undertake.
21                (iv) A zero emission facility shall be
22            permitted to terminate the contract in the event
23            the Nuclear Regulatory Commission terminates the
24            resource's license.
25            (F) If the zero emission facility elects to
26        terminate a contract under subparagraph (E) of this

 

 

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1        paragraph (1), then the Commission shall reopen the
2        docket in which the Commission approved the zero
3        emission standard procurement plan under subparagraph
4        (C) of this paragraph (1) and, after notice and
5        hearing, enter an order acknowledging the contract
6        termination election if such termination is consistent
7        with the provisions of this subsection (d-5).
8        (2) For purposes of this subsection (d-5), the amount
9    paid per kilowatthour means the total amount paid for
10    electric service expressed on a per kilowatthour basis. For
11    purposes of this subsection (d-5), the total amount paid
12    for electric service includes, without limitation, amounts
13    paid for supply, transmission, distribution, surcharges,
14    and add-on taxes.
15        Notwithstanding the requirements of this subsection
16    (d-5), the contracts executed under this subsection (d-5)
17    shall provide that the total of zero emission credits
18    procured under a procurement plan shall be subject to the
19    limitations of this paragraph (2). For each delivery year,
20    the contractual volume receiving payments in such year
21    shall be reduced for all retail customers based on the
22    amount necessary to limit the net increase that delivery
23    year to the costs of those credits included in the amounts
24    paid by eligible retail customers in connection with
25    electric service to no more than 1.65% of the amount paid
26    per kilowatthour by eligible retail customers during the

 

 

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1    year ending May 31, 2009. The result of this computation
2    shall apply to and reduce the procurement for all retail
3    customers, and all those customers shall pay the same
4    single, uniform cents per kilowatthour charge under
5    subsection (k) of Section 16-108 of the Public Utilities
6    Act. To arrive at a maximum dollar amount of zero emission
7    credits to be paid for the particular delivery year, the
8    resulting per kilowatthour amount shall be applied to the
9    actual amount of kilowatthours of electricity delivered by
10    the electric utility in the delivery year immediately prior
11    to the procurement, to all retail customers in its service
12    territory. Unpaid contractual volume for any delivery year
13    shall be paid in any subsequent delivery year in which such
14    payments can be made without exceeding the amount specified
15    in this paragraph (2). The calculations required by this
16    paragraph (2) shall be made only once for each procurement
17    plan year. Once the determination as to the amount of zero
18    emission credits to be paid is made based on the
19    calculations set forth in this paragraph (2), no subsequent
20    rate impact determinations shall be made and no adjustments
21    to those contract amounts shall be allowed. All costs
22    incurred under those contracts and in implementing this
23    subsection (d-5) shall be recovered by the electric utility
24    as provided in this Section.
25        No later than June 30, 2019, the Commission shall
26    review the limitation on the amount of zero emission

 

 

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1    credits procured under this subsection (d-5) and report to
2    the General Assembly its findings as to whether that
3    limitation unduly constrains the procurement of
4    cost-effective zero emission credits.
5        (3) Six years after the execution of a contract under
6    this subsection (d-5), the Agency shall determine whether
7    the actual zero emission credit payments received by the
8    supplier over the 6-year period exceed the Average ZEC
9    Payment. In addition, at the end of the term of a contract
10    executed under this subsection (d-5), or at the time, if
11    any, a zero emission facility's contract is terminated
12    under subparagraph (E) of paragraph (1) of this subsection
13    (d-5), then the Agency shall determine whether the actual
14    zero emission credit payments received by the supplier over
15    the term of the contract exceed the Average ZEC Payment,
16    after taking into account any amounts previously credited
17    back to the utility under this paragraph (3). If the Agency
18    determines that the actual zero emission credit payments
19    received by the supplier over the relevant period exceed
20    the Average ZEC Payment, then the supplier shall credit the
21    difference back to the utility. The amount of the credit
22    shall be remitted to the applicable electric utility no
23    later than 120 days after the Agency's determination, which
24    the utility shall reflect as a credit on its retail
25    customer bills as soon as practicable; however, the credit
26    remitted to the utility shall not exceed the total amount

 

 

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1    of payments received by the facility under its contract.
2        For purposes of this Section, the Average ZEC Payment
3    shall be calculated by multiplying the quantity of zero
4    emission credits delivered under the contract times the
5    average contract price. The average contract price shall be
6    determined by subtracting the amount calculated under
7    subparagraph (B) of this paragraph (3) from the amount
8    calculated under subparagraph (A) of this paragraph (3), as
9    follows:
10            (A) The average of the Social Cost of Carbon, as
11        defined in subparagraph (B) of paragraph (1) of this
12        subsection (d-5), during the term of the contract.
13            (B) The average of the market price indices, as
14        defined in subparagraph (B) of paragraph (1) of this
15        subsection (d-5), during the term of the contract,
16        minus the baseline market price index, as defined in
17        subparagraph (B) of paragraph (1) of this subsection
18        (d-5).
19        If the subtraction yields a negative number, then the
20    Average ZEC Payment shall be zero.
21        (4) Cost-effective zero emission credits procured from
22    zero emission facilities shall satisfy the applicable
23    definitions set forth in Section 1-10 of this Act.
24        (5) The electric utility shall retire all zero emission
25    credits used to comply with the requirements of this
26    subsection (d-5).

 

 

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

 

 

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1single portfolio or other standard as set forth in subsection
2(c), subsection (d), or subsection (d-5) of this Section,
3respectively. A renewable energy credit, carbon emission
4credit, or zero emission credit cannot be used to satisfy the
5requirements of more than one standard. If more than one type
6of credit is issued for the same megawatt hour of energy, only
7one credit can be used to satisfy the requirements of a single
8standard. After such use, the credit must be retired together
9with any other credits issued for the same megawatt hour of
10energy.
11(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
12101-113, eff. 1-1-20.)
 
13    Section 10. The Transportation Network Providers Act is
14amended by adding Section 33 as follows:
 
15    (625 ILCS 57/33 new)
16    Sec. 33. Continuation of Act; validation.
17    (a) The General Assembly finds and declares that:
18        (1) Public Act 101-639, which took effect on June 12,
19    2020, changed the repeal date set for the Transportation
20    Network Providers Act from June 1, 2020 to June 1, 2021.
21        (2) The Statute on Statutes sets forth general rules on
22    the repeal of statutes and the construction of multiple
23    amendments, but Section 1 of that Act also states that
24    these rules will not be observed when the result would be

 

 

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1    "inconsistent with the manifest intent of the General
2    Assembly or repugnant to the context of the statute".
3        (3) This amendatory Act of the 101st General Assembly
4    manifests the intention of the General Assembly to extend
5    the repeal of the Transportation Network Providers Act and
6    have the Transportation Network Providers Act continue in
7    effect until June 1, 2021.
8        (4) The Transportation Network Providers Act was
9    originally enacted to protect, promote, and preserve the
10    general welfare. Any construction of this Act that results
11    in the repeal of this Act on June 1, 2020 would be
12    inconsistent with the manifest intent of the General
13    Assembly and repugnant to the context of the Transportation
14    Network Providers Act.
15    (b) It is hereby declared to have been the intent of the
16General Assembly that the Transportation Network Providers Act
17not be subject to repeal on June 1, 2020.
18    (c) The Transportation Network Providers Act shall be
19deemed to have been in continuous effect since June 1, 2015
20(the effective date of Public Act 98-1173), and it shall
21continue to be in effect until it is otherwise lawfully
22repealed. All previously enacted amendments to the Act taking
23effect on or after June 1, 2020, are hereby validated.
24    (d) All actions taken in reliance on or pursuant to the
25Transportation Network Providers Act by any person or entity
26are hereby validated.

 

 

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1    (e) In order to ensure the continuing effectiveness of the
2Transportation Network Providers Act, it is set forth in full
3and reenacted by this amendatory Act of the 101st General
4Assembly. Striking and underscoring are used only to show
5changes being made to the base text. This reenactment is
6intended as a continuation of the Act. It is not intended to
7supersede any amendment to the Act that is enacted by the 101st
8General Assembly.
9    (f) The Transportation Network Providers Act applies to all
10claims, civil actions, and proceedings pending on or filed on
11or before the effective date of this amendatory Act of the
12101st General Assembly.
 
13    Section 15. The Transportation Network Providers Act is
14reenacted as follows:
 
15    (625 ILCS 57/Act title)
16An Act concerning regulation.
 
17    (625 ILCS 57/1)
18    Sec. 1. Short title. This Act may be cited as the
19Transportation Network Providers Act.
20(Source: P.A. 98-1173, eff. 6-1-15.)
 
21    (625 ILCS 57/5)
22    Sec. 5. Definitions.

 

 

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1    "Transportation network company" or "TNC" means an entity
2operating in this State that uses a digital network or software
3application service to connect passengers to transportation
4network company services provided by transportation network
5company drivers. A TNC is not deemed to own, control, operate,
6or manage the vehicles used by TNC drivers, and is not a
7taxicab association or a for-hire vehicle owner.
8    "Transportation network company driver" or "TNC driver"
9means an individual who operates a motor vehicle that is:
10        (1) owned, leased, or otherwise authorized for use by
11    the individual;
12        (2) not a taxicab or for-hire public passenger vehicle;
13    and
14        (3) used to provide transportation network company
15    services.
16    "Transportation network company services" or "TNC
17services" means transportation of a passenger between points
18chosen by the passenger and prearranged with a TNC driver
19through the use of a TNC digital network or software
20application. TNC services shall begin when a TNC driver accepts
21a request for transportation received through the TNC's digital
22network or software application service, continue while the TNC
23driver transports the passenger in the TNC driver's vehicle,
24and end when the passenger exits the TNC driver's vehicle. TNC
25service is not a taxicab, for-hire vehicle, or street hail
26service.

 

 

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1(Source: P.A. 98-1173, eff. 6-1-15.)
 
2    (625 ILCS 57/10)
3    Sec. 10. Insurance.
4    (a) Transportation network companies and participating TNC
5drivers shall comply with the automobile liability insurance
6requirements of this Section as required.
7    (b) The following automobile liability insurance
8requirements shall apply from the moment a participating TNC
9driver logs on to the transportation network company's digital
10network or software application until the TNC driver accepts a
11request to transport a passenger, and from the moment the TNC
12driver completes the transaction on the digital network or
13software application or the ride is complete, whichever is
14later, until the TNC driver either accepts another ride request
15on the digital network or software application or logs off the
16digital network or software application:
17        (1) Automobile liability insurance shall be in the
18    amount of at least $50,000 for death and personal injury
19    per person, $100,000 for death and personal injury per
20    incident, and $25,000 for property damage.
21        (2) Contingent automobile liability insurance in the
22    amounts required in paragraph (1) of this subsection (b)
23    shall be maintained by a transportation network company and
24    provide coverage in the event a participating TNC driver's
25    own automobile liability policy excludes coverage

 

 

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1    according to its policy terms or does not provide at least
2    the limits of coverage required in paragraph (1) of this
3    subsection (b).
4    (c) The following automobile liability insurance
5requirements shall apply from the moment a TNC driver accepts a
6ride request on the transportation network company's digital
7network or software application until the TNC driver completes
8the transaction on the digital network or software application
9or until the ride is complete, whichever is later:
10        (1) Automobile liability insurance shall be primary
11    and in the amount of $1,000,000 for death, personal injury,
12    and property damage. The requirements for the coverage
13    required by this paragraph (1) may be satisfied by any of
14    the following:
15            (A) automobile liability insurance maintained by a
16        participating TNC driver;
17            (B) automobile liability company insurance
18        maintained by a transportation network company; or
19            (C) any combination of subparagraphs (A) and (B).
20        (2) Insurance coverage provided under this subsection
21    (c) shall also provide for uninsured motorist coverage and
22    underinsured motorist coverage in the amount of $50,000
23    from the moment a passenger enters the vehicle of a
24    participating TNC driver until the passenger exits the
25    vehicle.
26        (3) The insurer, in the case of insurance coverage

 

 

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1    provided under this subsection (c), shall have the duty to
2    defend and indemnify the insured.
3        (4) Coverage under an automobile liability insurance
4    policy required under this subsection (c) shall not be
5    dependent on a personal automobile insurance policy first
6    denying a claim nor shall a personal automobile insurance
7    policy be required to first deny a claim.
8    (d) In every instance when automobile liability insurance
9maintained by a participating TNC driver to fulfill the
10insurance obligations of this Section has lapsed or ceased to
11exist, the transportation network company shall provide the
12coverage required by this Section beginning with the first
13dollar of a claim.
14    (e) This Section shall not limit the liability of a
15transportation network company arising out of an automobile
16accident involving a participating TNC driver in any action for
17damages against a transportation network company for an amount
18above the required insurance coverage.
19    (f) The transportation network company shall disclose in
20writing to TNC drivers, as part of its agreement with those TNC
21drivers, the following:
22        (1) the insurance coverage and limits of liability that
23    the transportation network company provides while the TNC
24    driver uses a vehicle in connection with a transportation
25    network company's digital network or software application;
26    and

 

 

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1        (2) that the TNC driver's own insurance policy may not
2    provide coverage while the TNC driver uses a vehicle in
3    connection with a transportation network company digital
4    network depending on its terms.
5    (g) An insurance policy required by this Section may be
6placed with an admitted Illinois insurer, or with an authorized
7surplus line insurer under Section 445 of the Illinois
8Insurance Code; and is not subject to any restriction or
9limitation on the issuance of a policy contained in Section
10445a of the Illinois Insurance Code.
11    (h) Any insurance policy required by this Section shall
12satisfy the financial responsibility requirement for a motor
13vehicle under Sections 7-203 and 7-601 of the Illinois Vehicle
14Code.
15    (i) If a transportation network company's insurer makes a
16payment for a claim covered under comprehensive coverage or
17collision coverage, the transportation network company shall
18cause its insurer to issue the payment directly to the business
19repairing the vehicle, or jointly to the owner of the vehicle
20and the primary lienholder on the covered vehicle.
21(Source: P.A. 98-1173, eff. 6-1-15; 99-56, eff. 7-16-15.)
 
22    (625 ILCS 57/15)
23    Sec. 15. Driver requirements.
24    (a) Prior to permitting an individual to act as a TNC
25driver on its digital platform, the TNC shall:

 

 

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1        (1) require the individual to submit an application to
2    the TNC or a third party on behalf of the TNC, which
3    includes information regarding his or her full legal name,
4    social security number, address, age, date of birth,
5    driver's license, driving history, motor vehicle
6    registration, automobile liability insurance, and other
7    information required by the TNC;
8        (2) conduct, or have a third party conduct, a local and
9    national criminal history background check for each
10    individual applicant that shall include:
11            (A) Multi-State or Multi-Jurisdictional Criminal
12        Records Locator or other similar commercial nationwide
13        database with validation (primary source search); and
14            (B) National Sex Offenders Registry database; and
15        (3) obtain and review a driving history research report
16    for the individual.
17    (b) The TNC shall not permit an individual to act as a TNC
18driver on its digital platform who:
19        (1) has had more than 3 moving violations in the prior
20    three-year period, or one major violation in the prior
21    three-year period including, but not limited to,
22    attempting to evade the police, reckless driving, or
23    driving on a suspended or revoked license;
24        (2) has been convicted, within the past 7 years, of
25    driving under the influence of drugs or alcohol, fraud,
26    sexual offenses, use of a motor vehicle to commit a felony,

 

 

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1    a crime involving property damage, or theft, acts of
2    violence, or acts of terror;
3        (3) is a match in the National Sex Offenders Registry
4    database;
5        (4) does not possess a valid driver's license;
6        (5) does not possess proof of registration for the
7    motor vehicle used to provide TNC services;
8        (6) does not possess proof of automobile liability
9    insurance for the motor vehicle used to provide TNC
10    services; or
11        (7) is under 19 years of age.
12    (c) An individual who submits an application under
13paragraph (1) of subsection (a) that contains false or
14incomplete information shall be guilty of a petty offense.
15(Source: P.A. 100-738, eff. 8-7-18.)
 
16    (625 ILCS 57/20)
17    Sec. 20. Non-discrimination.
18    (a) The TNC shall adopt and notify TNC drivers of a policy
19of non-discrimination on the basis of destination, race, color,
20national origin, religious belief or affiliation, sex,
21disability, age, sexual orientation, or gender identity with
22respect to passengers and potential passengers.
23    (b) TNC drivers shall comply with all applicable laws
24regarding non-discrimination against passengers or potential
25passengers on the basis of destination, race, color, national

 

 

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1origin, religious belief or affiliation, sex, disability, age,
2sexual orientation, or gender identity.
3    (c) TNC drivers shall comply with all applicable laws
4relating to accommodation of service animals.
5    (d) A TNC shall not impose additional charges for providing
6services to persons with physical disabilities because of those
7disabilities.
8    (e) A TNC shall provide passengers an opportunity to
9indicate whether they require a wheelchair accessible vehicle.
10If a TNC cannot arrange wheelchair-accessible TNC service in
11any instance, it shall direct the passenger to an alternate
12provider of wheelchair-accessible service, if available.
13    (f) If a unit of local government has requirements for
14licensed chauffeurs not to discriminate in providing service in
15under-served areas, TNC drivers participating in TNC services
16within that unit of local government shall be subject to the
17same non-discrimination requirements for providing service in
18under-served areas.
19(Source: P.A. 98-1173, eff. 6-1-15.)
 
20    (625 ILCS 57/25)
21    Sec. 25. Safety.
22    (a) The TNC shall implement a zero tolerance policy on the
23use of drugs or alcohol while a TNC driver is providing TNC
24services or is logged into the TNC's digital network but is not
25providing TNC services.

 

 

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1    (b) The TNC shall provide notice of the zero tolerance
2policy on its website, as well as procedures to report a
3complaint about a driver with whom a passenger was matched and
4whom the passenger reasonably suspects was under the influence
5of drugs or alcohol during the course of the trip.
6    (c) Upon receipt of a passenger's complaint alleging a
7violation of the zero tolerance policy, the TNC shall
8immediately suspend the TNC driver's access to the TNC's
9digital platform, and shall conduct an investigation into the
10reported incident. The suspension shall last the duration of
11the investigation.
12    (d) The TNC shall require that any motor vehicle that a TNC
13driver will use to provide TNC services meets vehicle safety
14and emissions requirements for a private motor vehicle in this
15State.
16    (e) TNCs or TNC drivers are not common carriers, contract
17carriers or motor carriers, as defined by applicable State law,
18nor do they provide taxicab or for-hire vehicle service.
19(Source: P.A. 98-1173, eff. 6-1-15.)
 
20    (625 ILCS 57/30)
21    Sec. 30. Operational.
22    (a) A TNC may charge a fare for the services provided to
23passengers; provided that, if a fare is charged, the TNC shall
24disclose to passengers the fare calculation method on its
25website or within the software application service.

 

 

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1    (b) The TNC shall provide passengers with the applicable
2rates being charged and the option to receive an estimated fare
3before the passenger enters the TNC driver's vehicle.
4    (c) The TNC's software application or website shall display
5a picture of the TNC driver, and the license plate number of
6the motor vehicle utilized for providing the TNC service before
7the passenger enters the TNC driver's vehicle.
8    (d) Within a reasonable period of time following the
9completion of a trip, a TNC shall transmit an electronic
10receipt to the passenger that lists:
11        (1) the origin and destination of the trip;
12        (2) the total time and distance of the trip; and
13        (3) an itemization of the total fare paid, if any.
14    (e) Dispatches for TNC services shall be made only to
15eligible TNC drivers under Section 15 of this Act who are
16properly licensed under State law and local ordinances
17addressing these drivers if applicable.
18    (f) A taxicab may accept a request for transportation
19received through a TNC's digital network or software
20application service, and may charge a fare for those services
21that is similar to those charged by a TNC.
22(Source: P.A. 98-1173, eff. 6-1-15.)
 
23    (625 ILCS 57/32)
24    Sec. 32. Preemption. A unit of local government, whether or
25not it is a home rule unit, may not regulate transportation

 

 

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1network companies, transportation network company drivers, or
2transportation network company services in a manner that is
3less restrictive than the regulation by the State under this
4Act. This Section is a limitation under subsection (i) of
5Section 6 of Article VII of the Illinois Constitution on the
6concurrent exercise by home rule units of powers and functions
7exercised by the State.
8(Source: P.A. 99-56, eff. 7-16-15.)
 
9    (625 ILCS 57/34)
10    Sec. 34. Repeal. This Act is repealed on June 1, 2021.
11(Source: P.A. 101-639, eff. 6-12-20.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".